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                                                                     EXHIBIT 4.2

                          REGISTRATION RIGHTS AGREEMENT

          Registration Rights Agreement, dated as of July 20, 2004 (this
"AGREEMENT"), by and among the following:

          (i)     iPCS, Inc., a Delaware corporation (the "COMPANY");

          (ii)    AIG Annuity Insurance Company; AIG Life Insurance Company; AIG
Retirement Services, Inc (f/k/a AIG Sun America, Inc.); SunAmerica Life
Insurance Company; The Variable Annuity Life Insurance Company; VALIC Company II
Strategic Bond Fund; SunAmerica Income Funds - SunAmerica High Yield Bond Fund;
SunAmerica Series Trust - High Yield Bond Portfolio (Polaris); SunAmerica Income
Funds - Sun America Strategic Bond Fund; and VALIC Company II High Yield Bond
Fund (collectively and including Transferees, "AIG");

          (iii)   SPCP Group, LLC; Silver Point Capital Fund, L.P.; and Silver
Point Capital Offshore Fund, Ltd. (collectively and including Transferees,
"SILVER POINT"); and

          (iv)    Timothy M. Yager 2001 Trust, dated September 24, 2001
(including Transferees, "YAGER").

          WHEREAS, on February 23, 2003, the Company and its wholly owned
subsidiaries, iPCS Wireless, Inc. and iPCS Equipment, Inc., filed a Chapter 11
bankruptcy petition in the United States Bankruptcy Court for the Northern
District of Georgia (the "BANKRUPTCY COURT") for the purpose of effecting a
court-administered reorganization;

          WHEREAS, on March 31, 2004, the Company filed its plan of
reorganization with the Bankruptcy Court, which plan was amended on April 16,
2004 and on May 26, 2004 (as amended, the "PLAN OF REORGANIZATION");

          WHEREAS, the Plan of Reorganization provides, among other things, that
upon confirmation thereof by the Bankruptcy Court, certain existing senior
discount notes of the Company will be cancelled and the holders of such senior
discount notes, including AIG, Silver Point and Yager (collectively, the
"INITIAL INVESTORS"), will receive shares of common stock, par value $.01 per
share, of the Company (the "COMMON STOCK") on a pro rata basis;

          WHEREAS, on July 8, 2004, the Bankruptcy Court confirmed the Plan of
Reorganization;

          WHEREAS, simultaneously with the execution of this Agreement, the
order of the Bankruptcy Court confirming the Plan of Reorganization and the
transactions contemplated thereby becomes effective;

          WHEREAS, as a result of the confirmation of the Plan of
Reorganization, the Initial Investors are receiving newly issued shares of
Common Stock; and

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          WHEREAS, the Company has agreed to provide the Investors (as defined
below) with certain registration rights with respect to their Registrable
Securities (as defined below), upon the terms and subject to the conditions set
forth herein.

          NOW THEREFORE, in consideration of the mutual covenants contained
herein and other good and valuable consideration, the receipt, adequacy and
sufficiency of which are hereby acknowledged by the parties, the Company and
each Investor intending to be legally bound, hereby agree as follows:

          1.      DEFINITIONS. As used in this Agreement, the following terms
shall have the following respective meanings:

          "BANKRUPTCY CODE" shall mean Title 11 of the United States Code.

          "COMMON STOCK EQUIVALENTS" shall mean any shares of stock, warrants,
     rights, calls, options, debt or other securities exchangeable or
     exercisable for or convertible into shares of Common Stock.

          "EFFECTIVE DATE" shall have the meaning set forth in the Plan of
     Reorganization.

          "INVESTORS" shall mean the Initial Investors and the Transferees, in
     each case, so long as each such person holds Registrable Securities.

          "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
     amended, or any similar federal statute then in effect, and a reference to
     a particular section thereof shall be deemed to include a reference to the
     comparable section, if any, of any such similar federal statute.

          "REGISTRABLE SECURITIES" shall mean any shares of Common Stock owned
     by any stockholder of the Company, any shares of Common Stock which may be
     issued or distributed in respect thereof by way of stock dividend or stock
     split or other distribution, recapitalization or reclassification and any
     shares of Common Stock owned or to be acquired upon conversion, exercise or
     exchange of Common Stock Equivalents. As to any particular shares of Common
     Stock, such shares of Common Stock shall cease to be Registrable Securities
     when (a) they have been distributed to the public pursuant to an offering
     registered under the Securities Act, (b) they have been sold to the public
     through a broker, dealer or market-maker in compliance with Rule 144 under
     the Securities Act (or any successor or similar provision then in force),
     (c) they may be sold or transferred pursuant to Rule 144(k) under the
     Securities Act (or any successor or similar provision then in force)
     without restrictions or (d) such security has ceased to be outstanding.

          "REGISTRATION EXPENSES" shall mean all expenses incident to the
     Company's performance of or compliance with this Agreement, including,
     without limitation, all SEC, Nasdaq Stock Market and other stock exchange,
     automated quotation system or National Association of Securities Dealers,
     Inc. registration and filing fees and expenses, fees and expenses of
     compliance with securities or blue sky laws (including, without limitation,
     reasonable fees and disbursements of counsel for the underwriters in
     connection with blue sky qualifications of the Registrable Securities),
     rating agency fees,

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     printing expenses, messenger, telephone and delivery expenses, the fees and
     expenses incurred in connection with the listing of the securities to be
     registered on each securities exchange or market system on which similar
     securities issued by the Company are then listed, fees and expenses of
     counsel for the Company and all independent certified public accountants
     (including the expenses of any annual audit, special audit and "cold
     comfort" letters required by or incident to such performance and
     compliance), securities laws liability insurance (if the Company so
     desires), the fees and disbursements of underwriters (including, without
     limitation, all fees and expenses of any "qualified independent
     underwriter" required by the rules of the NASD) customarily paid by
     issuers, the expenses customarily borne by the issuers of securities in a
     "road show" presentation to potential investors, the reasonable fees and
     expenses of any special experts retained by the Company in connection with
     such registration, the fees and disbursements of one counsel for the
     Selling Investors (which counsel shall be selected by a majority of
     aggregate amount of outstanding Registrable Securities included in any
     registration) (the "PARTICIPATING INVESTORS' COUNSEL") and fees and
     expenses of other persons retained by the Company (but not including any
     Selling Expenses).

          "SEC" shall mean the Securities and Exchange Commission or any other
     federal agency at the time administering the Securities Act or the Exchange
     Act.

          "SECURITIES ACT" shall mean the Securities Act of 1933, as amended, or
     any similar federal statute then in effect, and a reference to a particular
     section thereof shall be deemed to include a reference to the comparable
     section, if any, of any such similar federal statute.

          "SELLING EXPENSES" shall mean any underwriting discounts or
     commissions or transfer taxes, if any, attributable to the sale of
     Registrable Securities by any Selling Investor, all fees and disbursements
     of any Selling Investor's counsel (other than the Participating Investors'
     Counsel) and all other out-of-pocket expenses of any Selling Investor
     (other than Registration Expenses).

          "SELLING INVESTOR" shall mean any Investor whose Registrable
     Securities are to be sold and distributed to the public pursuant to a
     registration of such Registrable Securities under the Securities Act as
     provided in this Agreement.

          "SHELF REGISTRATION STATEMENT" shall mean a "shelf" registration
     statement of the Company filed pursuant to the provisions of SECTION 2
     hereof for an offering to be made on a delayed or continuous basis pursuant
     to Rule 415 under the Securities Act, or any similar rule that may be
     adopted by the SEC, and all amendments and supplements to such registration
     statement, including post-effective amendments, in each case including the
     prospectus contained therein, all exhibits thereto and all documents
     incorporated or deemed to be incorporated by reference therein.

          "TRANSFEREE" shall mean any person holding Registrable Securities as a
     result of a transfer or assignment of Registrable Securities to that person
     by an Investor in accordance with SECTION 8(f) below.

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          2.      SHELF REGISTRATION.

          (a)     FILING OF SHELF REGISTRATION. The Company shall prepare and,
prior to the date that is twenty (20) days after the Effective Date (the "SHELF
DATE"), file a Shelf Registration Statement covering all of the Registrable
Securities owned by the Investors.

          (b)     EFFECTIVENESS. The Company will use its commercially
reasonable efforts to cause the Shelf Registration Statement to be effective not
later than ninety (90) days after the Shelf Date. The Company shall use its
commercially reasonable efforts to keep the Shelf Registration Statement
continuously effective, supplemented and amended as required under the
Securities Act in order to permit the prospectus forming a part thereof to be
usable for the period beginning on the date on which the Shelf Registration
Statement is declared effective and ending the earliest to occur of: (i) the
second anniversary of the date the Shelf Registration Statement is declared
effective and (ii) such date as all of the shares of Common Stock included in
the Shelf Registration Statement cease to be Registrable Securities.

          (c)     SUSPENSION. The Company shall have the right, exercisable on
not more than one occasion in any twelve (12) month period, from time to time to
postpone or suspend (but not for a period exceeding 30 days in the aggregate in
any twelve (12) month period) the filing or effectiveness of a Shelf
Registration Statement if the Company's Chief Executive Officer or Chief
Financial Officer determines, in his or her good faith judgment (evidenced by an
officer's certificate), that such registration and offering or continued
effectiveness would reasonably be expected to (i) interfere with any material
financing, acquisition, disposition, corporate reorganization or other material
transaction involving the Company or any of its subsidiaries, including, without
limitation, the negotiation of modifications to the Company's affiliation
agreements with Sprint PCS (collectively, a "MATERIAL EVENT") or (ii) require
public disclosure of a Material Event prior to the time such disclosure might
otherwise be required. As promptly as reasonably practicable, the Company shall
advise each Selling Investor of the exercise of its right to postpone or suspend
the Shelf Registration Statement (but not the nature of or details concerning
such exercise) pursuant to this SECTION 2(c). Promptly upon the abandonment,
consummation, or termination of the Material Event or the public disclosure of
the Material Event, the suspension of the use of the Shelf Registration
Statement pursuant to this SECTION 2(c) shall cease and the Company shall
promptly comply with SECTION 6 hereof and notify the Investors that disposition
of the Registrable Securities may be resumed under the Shelf Registration
Statement. Each Investor hereby covenants and agrees that it will not dispose of
any Registrable Securities pursuant to the Shelf Registration Statement during
the periods for which sales under the Shelf Registration Statement have been
suspended as set forth above or until such earlier time as the Company shall
have notified the Investors in writing that sales may resume under the Shelf
Registration Statement.

          3.      DEMAND REGISTRATION.

          (a)     REQUEST BY AN INVESTOR. At any time following the expiration
of the effectiveness of the Shelf Registration Statement, any Investor (other
than Yager) may make a written request for registration under the Securities Act
of all or any part of such Investor's Registrable Securities having a minimum
value of $15 million at the time of the written request (a "DEMAND
REGISTRATION"). Such request shall specify the amount of Registrable Securities

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requested to be registered by such Investor and the intended method of
disposition thereof. Promptly after receipt of such request, the Company shall
(i) notify all of the Investors that such a written request has been received
and that they have the right to include their Registrable Securities in such
registration and (ii) use commercially reasonable efforts to effect the
registration under the Securities Act of all or part of such Registrable
Securities as are specified in such request, together with all or part of such
Registrable Securities joining in such request as are specified in a written
request received by the Company within fifteen (15) days after the receipt of
the Company's notice by the Investors. The Selling Investors and the Company
shall consult with one another at the beginning of, and throughout, the
registration process to coordinate the timing of the proposed offering, among
other things, with respect to the existence of any material business combination
discussions that may be ongoing.

          (b)     PRIORITY IN DEMAND REGISTRATIONS. If a Demand Registration
involves an underwritten offering and the managing underwriter advises the
Company and the Selling Investors in writing that, in its opinion, the number of
securities requested to be included in such registration by all other Selling
Investors who have the right to include Registrable Securities in any such
registration and any securities to be issued by the Company exceeds the largest
number of securities which can be sold without reasonably expecting to have an
adverse effect on such offering, including the price at which such securities
can be sold, the number of such securities to be included in such registration
shall be reduced to such extent, and the Company shall include in such
registration such maximum number of securities as follows:

                  (1)   FIRST, up to the full number of the Registrable
Securities requested to be included in such registration by the Investor that
initiated such Demand Registration (the "INITIATING INVESTOR");

                  (2)   SECOND, to the extent that the number of Registrable
Securities which the Initiating Investor requested to be included in such
registration is less than the number of equity securities which the Company has
been advised can be sold in such offering without having the adverse effect
referred to above, up to the full number of the Registrable Securities requested
to be included in such registration by Investors (other than Yager) (the
"NON-INITIATING INVESTORS"), PROVIDED that if such number is less than the full
number of such Registrable Securities that are so requested to be included in
such registration by the Non-Initiating Investors, such number shall be
allocated pro rata among the Non-Initiating Investors on the basis of the
relative number of Registrable Securities each Non-Initiating Investor has
requested to be included in such registration (with any number in excess of such
Non-Initiating Investor's request being reallocated among the Non-Initiating
Investors in a like manner);

                  (3)   THIRD, to the extent that the number of Registrable
Securities which the Initiating Investor and the Non-Initiating Investors have
requested to be included in such registration is less than the number of equity
securities which the Company has been advised can be sold in such offering
without having the adverse effect referred to above, up to the full number of
the Registrable Securities requested to be included in such registration by
Yager; and

                  (4)   FOURTH, up to the full amount of the securities which
the Company proposes to sell for its own account.

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Each Selling Investor shall have the right to exclude its Registrable Securities
from any underwritten Demand Registration if such Registrable Securities cannot
be sold in such offering within a price range acceptable to such Selling
Investor.

          (c)     NUMBER AND TIMING OF DEMAND REGISTRATIONS. AIG and its
Transferees shall be entitled to request, in the aggregate, two (2) Demand
Registrations. Silver Point and its Transferees shall be entitled to request, in
the aggregate, two (2) Demand Registrations. In any event, no more than two (2)
requests for a Demand Registration shall be permitted in any twelve (12) month
period and the Company shall not be required to effect a Demand Registration
until a period of 180 days shall have elapsed from the date on which the
distribution of Registrable Securities under any previous Demand Registration
has been completed. A Demand Registration shall not be deemed to have been
requested by the Initiating Holder for purposes of this SECTION 3(c) if such
request has been withdrawn by the Initiating Holder and the Initiating Holder
shall have elected to pay all Registration Expenses of the Company in connection
with such withdrawn request.

          (d)     POSTPONEMENTS IN DEMAND REGISTRATIONS.

                  (1)   If, upon receipt of a request for a Demand Registration,
the Company is advised in writing by a nationally recognized investment banking
firm selected by the Company that, in such firm's opinion, a registration by the
Company at the time and on the terms requested would adversely affect any public
offering of securities of the Company (other than in connection with employee
benefit and similar plans) (a "COMPANY OFFERING") with respect to which the
Company has commenced preparations for a registration prior to the receipt of
the request for a Demand Registration and the Company furnishes Selling
Investors with a certificate signed by the Chief Executive Officer or Chief
Financial Officer of the Company to such effect (the "OFFER DELAY NOTICE")
promptly after receipt of such request, the Company shall not be required to
effect a Demand Registration until the earliest of (A) ninety (90) days after
the completion of such Company Offering, (B) promptly after the abandonment of
such Company Offering or (C) ninety (90) days after the date of the Offer Delay
Notice.

                  (2)   If, upon receipt of a request for a Demand Registration
or while a request for a Demand Registration is pending, the Company's Chief
Executive Officer or Chief Financial Officer determines, in his or her good
faith judgment (evidenced by an officer's certificate), that such registration
and offering or continued effectiveness would reasonably be expected to (i)
interfere with a Material Event or (ii) require public disclosure of a Material
Event prior to the time such disclosure might otherwise be required, and the
Company provides Selling Investors written notice (the "TRANSACTION DELAY
NOTICE") thereof (but not the nature of or details concerning such
determination) promptly after the Company makes such determination, which shall
be made promptly after the receipt of any request, the Company shall not be
required to effect a Demand Registration until the earlier of (A) the date upon
which such Material Event is disclosed to the public or ceases to be material or
(B) thirty (30) days after Selling Investors' receipt of such Transaction Delay
Notice.

          (e)     SELECTION OF UNDERWRITERS. If in any Demand Registration
Selling Investors request that such registration shall be in the form of an
underwritten offering, such offering shall be an underwritten offering and the
Company, in consultation with the Selling

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Investors, shall have the right to select any investment banker and manager or
co-managers to administer the offering (subject to the approval of the Selling
Investors (such approval not to be unreasonably withheld)). The Company shall
(together with Selling Investors) enter into an underwriting agreement in
customary form with the underwriter or underwriters selected for such
underwriting, as well as all other documents customary in similar offerings,
including, without limitation, underwriting agreements, custody agreements,
powers of attorney, and indemnification agreements.

          4.      PIGGYBACK REGISTRATION.

          (a)     RIGHTS TO INCLUDE REGISTRABLE SECURITIES. If the Company
proposes to register (other than pursuant to SECTIONS 2 or 3 hereof) any of its
equity securities under the Securities Act in a primary or secondary public
offering (other than a Form S-8 or Form S-4), then the Company will each such
time, subject to the provisions of SECTION 4(b) hereof, give prompt written
notice to each Investor of its intention to do so and of such Investor's rights
under this SECTION 4, at least twenty (20) business days prior to the
anticipated filing date of the registration statement relating to such
registration. Such notice shall offer each Investor the opportunity to include
in such registration statement such number of Registrable Securities as such
Investor may request, subject to the provisions of SECTION 4(b) hereof. Upon the
written request of such Investor (each such Investor, a "REQUESTING INVESTOR")
made within ten (10) days after the receipt of the Company's notice (which
request shall specify the number of Registrable Securities to be disposed of by
such Requesting Investor), subject to the provisions of SECTION 4(b) hereof, the
Company shall use its commercially reasonable efforts to effect the registration
under the Securities Act of all Registrable Securities which the Company has
been so requested to register by such Requesting Investor to the extent required
to permit the disposition of the Registrable Securities so to be registered;
PROVIDED that (i) if the public offering is underwritten, such Requesting
Investor must sell the number of its Registrable Securities to the underwriters
selected by the Company at the same price and subject to the terms of a
customary underwriting agreement (except that indemnification obligations of
such Requesting Investor shall be limited to those obligations set forth in
SECTION 7 hereof); and (ii) if, at any time after giving written notice of its
intention to register any securities pursuant to this SECTION 4(a) and prior to
the effective date of the registration statement filed in connection with such
registration, the Company shall determine for any reason not to register such
securities, the Company shall give written notice to such Requesting Investor
and, thereupon, shall be relieved of its obligation to register any Registrable
Securities in connection with such registration. The Company shall pay all
Registration Expenses in connection with each registration of Registrable
Securities requested pursuant to this SECTION 4, and each Selling Investor shall
severally and not jointly pay its own Selling Expenses in connection with the
registration and sale of the Registrable Securities by such Selling Investor.

          (b)     PRIORITY IN UNDERWRITTEN PIGGYBACK REGISTRATIONS.
Notwithstanding anything else contained herein to the contrary, if the managing
underwriter advises the Company in writing that, in its opinion, the number of
equity securities (including all Registrable Securities) which the Company, each
Requesting Investor and any other persons intend to include in such registration
exceeds the largest number of securities which can be sold without having an
adverse effect on such offering, including the price at which such securities
can be sold, the Company will include in such registration up to such maximum
number of securities:

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                  (1)   FIRST, all the securities the Company proposes to sell
for its own account (the "COMPANY SECURITIES");

                  (2)   SECOND, up to the full number of the Registrable
Securities held by each Requesting Investor (other than Yager) that are
requested to be included in such registration in excess of the number of Company
Securities to be sold in such offering which, in the good faith view of such
managing underwriter, can be so sold without so adversely affecting such
offering as described above (the "OTHER SECURITIES"); PROVIDED that if such
number is less than the full number of such Registrable Securities that are so
requested to be included in such registration by the Requesting Investors (other
than Yager), such number shall be allocated pro rata among the Requesting
Investors (other than Yager) on the basis of the relative number of Registrable
Securities each Requesting Investor (other than Yager) has requested to be
included in such registration (with any number in excess of such Investor's
request being reallocated among the Requesting Investors (other than Yager) in a
like manner);

                  (3)   THIRD, up to the full number of the Registrable
Securities held by Yager that are requested to be included in such registration
in excess of the number of Company Securities and Other Securities to be sold in
such offering which, in the good faith view of such managing underwriter, can be
so sold without so adversely affecting such offering as described above (the
"ADDITIONAL SECURITIES"); PROVIDED that if such number is less than the full
number of such equity securities that are so requested to be included in such
registration by Yager, such number shall be allocated pro rata among such
persons on the basis of the relative number of equity securities each person has
requested to be included in such registration (with any number in excess of such
person's request being reallocated among the other persons in a like manner);
and

                  (4)   FOURTH, up to the full number of equity securities held
by each person other than the Requesting Investors (if any) that are requested
to be included in such registration in excess of the number of Company
Securities, Other Securities and Additional Securities to be sold in such
offering which, in the good faith view of such managing underwriter, can be so
sold without so adversely affecting such offering; PROVIDED that if such number
is less than the full number of such equity securities that are so requested to
be included in such registration by persons other than the Requesting Investors,
such number shall be allocated pro rata among such persons on the basis of the
relative number of equity securities each person has requested to be included in
such registration (with any number in excess of such person's request being
reallocated among the other persons in a like manner).

          5.      HOLDBACK AGREEMENTS.

          (a)     RESTRICTIONS ON PUBLIC SALE BY THE INVESTORS. In connection
with any underwritten registration of Registrable Securities pursuant to this
Agreement, each Investor who participates in such underwritten registration will
agree with the managing underwriter not to effect any public sale or
distribution, including any sale pursuant to Rule 144 under the Securities Act,
of any Registrable Securities, and not to effect any public sale or distribution
of any other equity security of the Company, or of any security convertible into
or exchangeable or exercisable for any equity security of the Company, (in each
case, other than as part of the underwritten public offering pursuant to this
Agreement) during the ten (10) business day period

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prior to the effective date of the applicable registration statement, if such
date is known, and during such period as the managing underwriter may request
(not to exceed ninety (90) days) following the date of the final prospectus;
provided that each officer, director and other selling shareholder under the
proposed registration shall also agree to the restrictions contained in this
SECTION 5(a).

          (b)     RESTRICTIONS ON PUBLIC SALE BY THE COMPANY AND OTHERS. In
connection with any underwritten registration of Registrable Securities pursuant
to this Agreement, the Company agrees (i) not to effect any public sale or
distribution of any of its equity securities or of any security convertible into
or exchangeable or exercisable for any equity security of the Company (in each
case, other than as part of the underwritten public offering pursuant to this
Agreement or in connection with an employee stock option or other benefit plan)
during the ten-day (10) period prior to the effective date of the applicable
registration statement, if such date is known, and during such period as the
managing underwriter may request (not to exceed ninety (90) days) following the
date of the final prospectus and (ii) that any agreement entered into after the
date of this Agreement pursuant to which the Company issues or agrees to issue
any privately placed equity securities shall contain a provision under which
holders of such securities agree not to effect any public sale or distribution
of any such securities during the period referred to in the foregoing clause
(i), including any sale pursuant to Rule 144 under the Securities Act (except as
part of such registration, if permitted).

          6.      REGISTRATION PROCEDURES. If and whenever the Company is
required to use its commercially reasonable efforts to effect or cause the
registration of any Registrable Securities under the Securities Act as provided
in this Agreement, the Company will:

          (a)     use its commercially reasonable efforts to prepare and file
with the SEC a registration statement on any form for which the Company then
qualifies or which counsel for the Company shall deem appropriate, and which
form shall be available for the sale of the Registrable Securities in accordance
with the intended methods of distribution thereof, and use its commercially
reasonable efforts to cause such registration statement to become and remain
effective as promptly as practicable; provided that before filing with the SEC a
registration statement or prospectus or any amendments or supplements thereto,
the Company will furnish to each Selling Investor copies of the form of
preliminary prospectus proposed to be filed and furnish to such Selling
Investor's counsel copies of all such documents proposed to be filed, which
documents will be subject to the review of such counsel at least five (5)
business days prior to the filing thereof with the SEC;

          (b)     use its commercially reasonable efforts to obtain (i) the
prompt withdrawal of any stop order or (ii) the prompt lifting of any suspension
of the qualification (or exemption from qualification) of any of the Registrable
Securities for sale in any jurisdiction in which they have been qualified for
sale, in either case as promptly as reasonably practicable, and provide prompt
notice to the Selling Investors of the withdrawal of any such orders and shall
in any event within twenty (20) days of the cessation of the effectiveness (i)
amend the registration statement in a manner reasonably expected to obtain the
withdrawal of an order suspending the effectiveness thereof, or (ii) file an
additional registration statement covering all the securities that as of the
date of such filing are Registrable Securities, PROVIDED, HOWEVER that in
connection

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with a Shelf Registration Statement, such requirement shall only be
in effect until the second anniversary that the Shelf Registration Statement was
declared effective;

          (c)     prepare and file with the SEC such amendments and supplements
to such registration statement and the prospectus used in connection therewith
as may be necessary to keep such registration statement effective for a period
of not less than one hundred eighty (180) days or such shorter period which will
terminate when all Registrable Securities covered by such registration statement
have been sold (except with respect to the Shelf Registration Statement, which
shall remain effective for the period set forth in SECTION 2(b) above), and
comply with the provisions of the Securities Act with respect to the disposition
of all securities covered by such registration statement during such period in
accordance with the intended methods of disposition by the sellers thereof set
forth in such registration statement;

          (d)     furnish without charge to each Selling Investor and each
underwriter, if any, of Registrable Securities covered by such registration
statement such number of copies of such registration statement, each amendment
and supplement thereto (in each case including all exhibits thereto), the
prospectus included in such registration statement (including each preliminary
prospectus), in conformity with the requirements of the Securities Act, and such
other documents as such Selling Investor or underwriter may reasonably request
in order to facilitate the disposition of the Registrable Securities by such
Selling Investor, and the Company consents to the use of the prospectus or any
amendment or supplement thereto by the Selling Investors in connection with the
offering and sale of the Registrable Securities covered by the prospectus or any
amendment or supplement thereto;

          (e)     use its commercially reasonable efforts to register or qualify
such Registrable Securities under such other securities or blue sky laws of such
jurisdictions as each Selling Investor or underwriter, if any, reasonably
requests and do any and all other acts and things which may be reasonably
necessary or advisable to enable such Selling Investor and each underwriter, if
any, to consummate the disposition in such jurisdictions of the Registrable
Securities owned by such Selling Investor; PROVIDED that the Company will not be
required to (i) qualify generally to do business in any jurisdiction where it
would not otherwise be required to qualify but for this PARAGRAPH (d), (ii)
subject itself to taxation in any such jurisdiction or (iii) consent to general
service of process in any such jurisdiction;

          (f)     use its commercially reasonable efforts to cause the
Registrable Securities covered by such registration statement to be registered
with or approved by such other governmental agencies or authorities as may be
necessary by virtue of the business and operations of the Company to enable each
Selling Investor to consummate the disposition of such Registrable Securities;

          (g)     as promptly as reasonably practicable, advise each Selling
Investor (i) when a registration statement relating to the Registrable
Securities and any amendment thereto has been filed with the SEC and when the
registration statement relating to the Registrable Securities or any
post-effective amendment thereto has become effective; (ii) of the issuance by
the SEC or any other federal or state governmental authority of any stop order
suspending the effectiveness of the registration statement relating to the
Registrable Securities or the initiation or threatening of any proceedings for
that purpose; (iii) the happening of (but not the nature of or

                                       10
<Page>

details concerning) any request, following the effectiveness of the registration
statement relating to the Registrable Securities under the Securities Act, by
the SEC or any other federal or state governmental authority for amendments or
supplements to any registration statement relating to the Registrable Securities
or related prospectus or for additional information relating to the registration
statement relating to the Registrable Securities; (iv) the receipt by the
Company of any notification with respect to the suspension of the qualification
or exemption from qualification of any of the Registrable Securities for sale in
any jurisdiction or the initiation or threatening of any proceeding for such
purpose; and (v) of the happening of (but not the nature of or details
concerning) any event that requires the making of any changes in the
registration statement relating to the Registrable Securities or the prospectus
so that, as of such date, the statements therein are not misleading and the
registration statement relating to the Registrable Securities or the prospectus,
as the case may be, does not include an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to make
the statements therein (in the case of a prospectus, in light of the
circumstances under which they were made) not misleading;

          (h)     upon the occurrence of any event described in
SECTION 6(g)(iii) and 6(g)(v) hereof, as soon as reasonably practicable prepare
and file with the SEC a post-effective amendment to such registration statement
relating to the Registrable Securities or a supplement to the related prospectus
or any document which is incorporated or deemed to be incorporated by reference
in the registration statement relating to the Registrable Securities or
prospectus, as the case may be, so that, as thereafter delivered to purchasers
of the applicable Registrable Securities included therein, the registration
statement relating to the Registrable Securities and the prospectus, in each
case as then amended or supplemented, will not include an untrue statement of a
material fact or omit to state any material fact required to be stated therein
or necessary in order to make the statements therein (in the case of a
prospectus in light of the circumstances under which they were made) not
misleading and in the case of a post-effective amendment to the registration
statement relating to the Registrable Securities, use its commercially
reasonable efforts to cause it to be declared effective as promptly as is
reasonable practicable;

          (i)     if requested by the managing underwriter or underwriters or
any Selling Investor, immediately incorporate in a prospectus supplement or
post-effective amendment such information as the managing underwriters and the
Selling Investors agree should be included therein relating to the plan of
distribution with respect to such Registrable Securities, including, without
limitation, information with respect to the amount of Registrable Securities
being sold to such underwriters, the purchase price being paid therefor by such
underwriters and with respect to any other terms of the underwritten (or
commercially reasonable efforts underwritten) offering of the Registrable
Securities to be sold in such offering; and make all required filings of such
prospectus supplement or post-effective amendment as soon as notified of the
matters to be incorporated in such prospectus supplement or post-effective
amendment;

          (j)     cooperate with each Selling Investor and the managing
underwriters, if any, to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be sold and not bearing any
restrictive legends; and enable such Registrable Securities to be in such
denominations and registered in such names as the managing underwriters or each
Investor, as the case may be, may request at least three (3) business days prior
to any sale of the Registrable Securities;

                                       11
<Page>

          (k)     use its commercially reasonable efforts to cause all such
Registrable Securities to be listed on each securities market or automated
quotation system on which similar securities issued by the Company are then
listed or quoted, and enter into such customary agreements including a listing
application and indemnification agreement in customary form, PROVIDED that the
applicable listing requirements are satisfied, and to provide a transfer agent
and registrar for such Registrable Securities covered by such registration
statement no later than the effective date of such registration statement;

          (l)     cooperate and assist in any filings required to be made with
each securities market or automated quotation system on which similar securities
then listed or quoted;

          (m)     enter into such customary agreements (including an
underwriting agreement in customary form) and take all such other actions as
each Selling Investor or the underwriters, if any, reasonably request in order
to expedite or facilitate the disposition of such Registrable Securities,
including customary indemnification and making appropriate members of senior
management of the Company available for customary participation in "road show"
presentations to potential investors;

          (n)     make available for inspection by each Selling Investor, the
Participating Investors' Counsel, any underwriter participating in any
disposition pursuant to such registration statement, and any attorney,
broker-dealer, accountant or other agent retained by such Selling Investor or
underwriter (collectively, the "INSPECTORS"), all financial and other records,
pertinent corporate documents and properties of the Company and its
subsidiaries, if any, as shall be reasonably necessary to enable them to
exercise their due diligence responsibility, and cause the Company's and its
subsidiaries' officers, directors and employees to supply all information and
respond to all inquiries reasonably requested by any such Inspector in
connection with such registration statement;

          (o)     use its commercially reasonable efforts to obtain (i) an
opinion or opinions of counsel to the Company and (ii) a "cold comfort" letter
or letters from the Company's independent public accountants in customary form
and covering such matters of the type customarily covered by opinions and "cold
comfort" letters as the Selling Investors reasonably request;

          (p)     otherwise use its commercially reasonable efforts to comply
with all applicable rules and regulations of the SEC, and make available to its
security holders, as soon as reasonably practicable, an earnings statement
covering a period of at least twelve months, beginning with the first fiscal
quarter after the effective date of the registration statement (as the term
"effective date" is defined in Rule 158(c) under the Securities Act), which
earnings statement shall satisfy the provisions of Section 11(a) of the
Securities Act and Rule 158 thereunder or any successor provisions thereto; and

          (q)     promptly prior to the filing of any document which is to be
incorporated by reference into the registration statement or the prospectus
(after initial filing of the registration statement), provide copies of such
document to counsel to the Selling Investors and to the managing underwriters,
if any, make the Company's representatives available for discussion of

                                       12
<Page>

such document and make such changes in such document prior to the filing thereof
as counsel for any Selling Investor may reasonably request.

          Each Selling Investor shall severally and not jointly (i) furnish to
the Company such information regarding the securities held by such Selling
Investor and the intended method of disposition thereof as the Company shall
reasonably request in connection with such registration and (ii) pay its own
Selling Expenses in connection with the registration and sale of the Registrable
Securities by such Selling Investor.

          Each Selling Investor severally and not jointly agrees that, upon
receipt of any notice from the Company of the happening of any event of the kind
described in SECTION 6(g) (iii) AND (v) hereof, such Selling Investor will
forthwith discontinue disposition of Registrable Securities pursuant to the
registration statement covering such Registrable Securities until such Selling
Investor receives the copies of the prospectus supplement or amendment
contemplated by SECTION 6(h) hereof, and, if so directed by the Company, such
Selling Investor will deliver to the Company (at the Company's expense) all
copies, other than permanent file copies, then in such Selling Investor's
possession, of the prospectus covering such Registrable Securities.

          7.      INDEMNIFICATION.

          (a)     INDEMNIFICATION BY THE COMPANY. In the event of any
registration of any securities of the Company under the Securities Act pursuant
to SECTION 2, SECTION 3 or SECTION 4 hereof, the Company will, and it hereby
does, indemnify and hold harmless, to the full extent permitted by law, each
Selling Investor, its directors and officers, employees, general partners,
limited partners, advisory directors and managing directors (and directors,
officers, partners, advisory directors and managing directors thereof), each
other person who participates as an underwriter in the offering or sale of such
securities and each other person, if any, who controls, is controlled by or is
under common control with such Selling Investor or any such underwriter within
the meaning of the Securities Act, against any and all losses, claims, damages
or liabilities, joint or several, and expenses (including any amounts paid in
any settlement effected with the Company's consent) to which such Selling
Investor, any such director, officer, employee, general partner, limited
partner, advisory director or managing director or any such underwriter or
controlling person may become subject under the Securities Act, state securities
or blue sky laws, common law or otherwise, insofar as such losses, claims,
damages or liabilities (or actions or proceedings in respect thereof) or
expenses arise out of or are based upon (a) any untrue statement or alleged
untrue statement of any material fact contained, in any registration statement
under which such securities were registered under the Securities Act, any
preliminary, final or summary prospectus contained therein, or any amendment or
supplement thereto, (b) any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, or (c) any violation by the Company of any federal or
state rule or regulation applicable to the Company and relating to action
required of or inaction by the Company in connection with any such registration,
and the Company will reimburse such Selling Investor and each such director,
officer, employee, general partner, limited partner, advisory director, managing
director or each such underwriter and controlling person for any legal or any
other expenses reasonably incurred by them as such expenses are incurred in
connection with investigating or defending such loss, claim, liability, action
or proceeding; PROVIDED that the Company shall not be liable in any such case to
the extent that any

                                       13
<Page>

such loss, claim, damage, liability (or action or proceeding in respect thereof)
or expense arises out of or is based upon any untrue statement or alleged untrue
statement or omission or alleged omission made in such registration statement or
amendment or supplement thereto or in any such preliminary, final or summary
prospectus in reliance upon and in conformity with written information furnished
to the Company through an instrument duly executed by such Selling Investor or
any such director, officer, employee, general or limited partner, managing
director or underwriter specifically stating that it is for use in the
preparation thereof. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of such Selling Investor or
any such director, officer, employee, general partner, limited partner, advisory
director, managing director, underwriter or controlling person and shall survive
the transfer of such securities by such Selling Investor.

          (b)     INDEMNIFICATION BY THE SELLING INVESTORS AND UNDERWRITERS. The
Company may require, as a condition to including any Registrable Securities in
any registration statement filed in accordance with SECTION 2, SECTION 3 or
SECTION 4 hereof, that the Company shall have received an undertaking reasonably
satisfactory to it from each Selling Investor or any underwriter, to severally
and not jointly indemnify and hold harmless (in the same manner and to the same
extent as set forth in PARAGRAPH (a) of this SECTION 7) the Company and its
directors, officers, employees, controlling persons and all other prospective
sellers and their respective directors, officers, general and limited partners,
managing directors, and their respective controlling persons with respect to any
statement or alleged statement in or omission or alleged omission from such
registration statement, any preliminary, final or summary prospectus contained
therein, or any amendment or supplement, if such statement or alleged statement
or omission or alleged omission was made in reliance upon and in conformity with
written information furnished to the Company or its representatives through an
instrument duly executed by or on behalf of such Selling Investor or underwriter
specifically stating that it is for use in the preparation of such registration
statement, preliminary, final or summary prospectus or amendment or supplement.
Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of the Company or such Selling Investor,
underwriters or any of their respective directors, officers, employees, general
or limited partners, managing directors or controlling persons and shall survive
the transfer of such securities by such Selling Investor; PROVIDED, HOWEVER,
that such Selling Investor shall not be liable under this SECTION 7 for any
amounts exceeding the net proceeds actually received by such Selling Investor
from the sale of such Registrable Securities.

          (c)     NOTICES OF CLAIMS, ETC. Promptly after receipt by an
indemnified party hereunder of written notice of the commencement of any action
or proceeding with respect to which a claim for indemnification may be made
pursuant to this SECTION 7, such indemnified party shall, if a claim in respect
thereof is to be made against an indemnifying party, promptly give written
notice to the latter of the commencement of such action; PROVIDED that the
failure of any indemnified party to give notice as provided herein shall not
relieve the indemnifying party of its obligations under the preceding paragraphs
of this SECTION 7, except to the extent that the indemnifying party is actually
materially prejudiced by such failure to give notice. In case any such action is
brought against an indemnified party, unless in such indemnified party's
reasonable judgment a conflict of interest between such indemnified and
indemnifying parties may exist in respect of such claim, the indemnifying party
will be entitled to participate in and, jointly with any other indemnifying
party similarly notified, to assume the defense thereof, to the

                                       14
<Page>

extent that it may wish, with counsel reasonably satisfactory to such
indemnified party, and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, the
indemnifying party will not be liable to such indemnified party for any legal or
other expenses subsequently incurred by the latter in connection with the
defense thereof, unless in such indemnified party's reasonable judgment a
conflict of interest between such indemnified and indemnifying parties arises in
respect of such claim after the assumption of the defense thereof, and the
indemnifying party will not be subject to any liability for any settlement made
without its consent (which consent shall not be unreasonably withheld). No
indemnifying party will consent to entry of any judgment or enter into any
settlement of any pending or threatened proceeding which does not include as an
unconditional term thereof the giving by the claimant or plaintiff to all
indemnified parties of a release from all liability in respect to such claim or
litigation. Notwithstanding anything to the contrary contained herein, an
indemnifying party will not be obligated to pay the fees and expenses of more
than one counsel (together with appropriate local counsel) for all parties
indemnified by such indemnifying party with respect to such claim, unless in the
reasonable judgment of any indemnified party a conflict of interest may exist
between such indemnified party and any other of such indemnified parties with
respect to such claim, in which event the indemnifying party shall be obligated
to pay the fees and expenses of such additional counsel or counsels (together
with the fees of appropriate local counsel).

          (d)     CONTRIBUTION. If the indemnification provided for in this
SECTION 7 is unavailable to an indemnified party under SECTION 7(a) or SECTION
7(b) hereof in respect of any losses, claims, damages, liabilities or expenses
referred to therein, then each applicable indemnifying party, in lieu of
indemnifying such indemnified party, shall contribute to the amount paid or
payable by such indemnified party as a result of such losses, claims, damages,
liabilities or expenses in such proportion as is appropriate to reflect the
relative benefits received by the indemnifying party on the one hand and the
indemnified party on the other, and the relative fault of the indemnifying party
on the one hand and of the indemnified party on the other in connection with the
statements or omissions which resulted in such losses, claims, damages,
liabilities or expenses, as well as any other relevant equitable considerations.
The relative fault of the indemnifying party on the one hand and of the
indemnified party on the other shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the indemnifying party or by the indemnified party and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission. The amount paid or payable by a party as a
result of the losses, claims, damages, liabilities and expenses referred to
above shall be deemed to include, subject to the limitations set forth in
SECTION 7(c), any legal or other fees or expenses reasonably incurred by such
party in connection with investigating or defending any action or claim.

          The Company and each Selling Investor agree that it would not be just
and equitable if contribution pursuant to this SECTION 7(d) were determined by
pro rata allocation or by any other method of allocation which does not take
account of the equitable considerations referred to in the immediately preceding
paragraph. Notwithstanding the provisions of this SECTION 7(d), no Selling
Investor shall be required to contribute any amount in excess of the amount by
which the net proceeds actually received by such Selling Investor from the sale
of such Registrable Securities exceeds the amount of any damages which such
Selling Investor has

                                       15
<Page>

otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.

          8.      MISCELLANEOUS.

          (a)     REMEDIES. The Company and each Investor acknowledge and agree
that in the event of any breach of this Agreement by any of them, such Investor
and the Company would be irreparably harmed and could not be made whole by
monetary damages. Each party accordingly agrees to waive the defense in any
action for specific performance that a remedy at law would be adequate and that
the parties, in addition to any other remedy to which they may be entitled at
law or in equity, shall be entitled to compel specific performance of this
Agreement.

          (b)     ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement and understanding of the parties hereto in respect of the subject
matter contained herein, and there are no restrictions, promises,
representations, warranties, covenants, or undertakings with respect to the
subject matter hereof, other than those expressly set forth or referred to
herein. This Agreement supersedes all prior agreements and understanding among
the parties hereto with respect to the subject matter hereof.

          (c)     NOTICES. All notices, demands, requests, consents, approvals
or other communications (each of the foregoing, a "NOTICE") required or
permitted to be given hereunder or pursuant hereto or that are given with
respect to this Agreement to any party hereto shall be in writing and shall be
(i) personally delivered, (ii) sent by both registered or certified mail,
postage prepaid and return receipt requested, and regular first class mail,
(iii) sent both by facsimile transmission with receipt of transmission confirmed
electronically or by telephone and by regular first class mail or (iv) sent by
reputable overnight courier service with charges prepaid and delivery confirmed,
to the intended recipient at its respective address as set forth below;
PROVIDED, that, if a party sending any Notice has received written notice in
accordance with this SECTION 8(c) of a more recent address for any intended
recipient referred to below, any Notice to such intended recipient shall be
delivered or sent to it at the most recent address of which such party has
received such a notice:

                  (i) if to the Company:

                        iPCS, Inc.
                        1901 North Roselle Road
                        Schaumburg, Illinois 60195
                        Phone: (847) 885-7041
                        Fax: (847) 885-7125
                        Attention: Timothy M. Yager

                                       16
<Page>

               with a copy to:

                        Mayer, Brown, Rowe & Maw LLP
                        190 South LaSalle Street
                        Chicago, IL 60603
                        Phone: (312) 782-0600
                        Fax: (312) 701-7711
                        Attention: Paul W. Theiss, Esq.
                                   Robert J. Wild, Esq.

                  (ii) if to any of the Investors, to the address listed below
such Investor's name on the signature pages or the joinders hereto.

     Any Notice delivered or sent as provided above shall be deemed given when
so delivered or sent and shall be deemed received (i) when personally delivered,
(ii) three (3) business days after being mailed as above provided, (iii) when
sent by facsimile transmission as above provided, or (iv) one (1) business day
after being sent by courier as above provided; PROVIDED, however, that any
Notice specifying a new address to which any Notice shall be sent shall be
deemed received only when actually received.

          (d)     APPLICABLE LAW. The laws of the State of Delaware shall govern
the interpretation, validity and performance of the terms of this Agreement,
regardless of the law that might be applied under applicable principles of
conflicts of laws.

          (e)     SEVERABILITY. The invalidity, illegality or unenforceability
of one or more of the provisions of this Agreement in any jurisdiction shall not
affect the validity, legality or enforceability of the remainder of this
Agreement in such jurisdiction or the validity, legality or enforceability of
this Agreement, including any such provision, in any other jurisdiction, it
being intended that all rights and obligations of the parties hereunder shall be
enforceable to the fullest extent permitted by law.

          (f)     ASSIGNMENT. Neither this Agreement nor any of the rights,
interests or obligations hereunder shall be assigned by any of the parties
hereto (whether by operation of law or otherwise) without the prior written
consent of the other parties hereto, which in the case of a proposed assignment
by the Company, shall require the prior written consent of the Investors holding
a majority of the Registrable Securities outstanding at the time such consent is
required. Subject to the preceding sentence, this Agreement shall be binding
upon and inure to the benefit of and be enforceable by the parties hereto and
their respective successors and permitted assigns. The parties agree that the
registration rights granted to the Investors under this Agreement may be
transferred or assigned by the Investors only to a transferee or assignee of
Registrable Securities, and provided that the Company is given prompt written
notice of such transfer or assignment (which notice shall state the name and
address of the transferee or assignee, identify the Registrable Securities with
respect to which such registration rights are being transferred or assigned, and
state whether the Investor has transferred its right to request a Demand
Registration (if such a right is then available to the Investor) to the
transferee or assignee) and the transferee or assignee of such rights agrees to
be bound by the terms of this Agreement by

                                       17
<Page>

executing and delivering to the Company a joinder in the form of EXHIBIT A
attached hereto no later than ten (10) days after such transfer or assignment.

          (g)     AMENDMENTS, WAIVERS. This Agreement may not be amended,
modified or supplemented and no waivers of or consents to departures from the
provisions hereof may be given unless consented to in writing by the Company and
Investors holding a majority of the Registrable Securities affected by such
amendment, modification, supplement or waiver of or consents to departures from
the provisions hereof, provided, however, that (i) no amendment, modification,
supplement, waiver or consent to any departure from the provisions of SECTION 6
hereof shall be effective as against any Investor unless consented to in writing
by such Investor and (ii) no amendment, modification, supplement, waiver or
consent which has a disproportionate adverse affect on any right or obligation
of an Initial Investor under this Agreement shall be effective against such
Initial Investor unless consented to in writing by such Initial Investor. Each
Investor shall be bound by any consent authorized by this SECTION 8(g). No delay
on the part of any party in the exercise of any right, power or remedy shall
operate as a waiver thereof, nor shall any single or partial exercise by any
party of any right, power or remedy preclude other or further exercise thereof,
or the exercise of any other right, power or remedy.

          (h)     COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original but all of which shall
constitute one and the same Agreement.

          (i)     LIMITED LIABILITY. Notwithstanding any other provision of this
Agreement, neither the general partners, limited partners or managing directors,
or any directors or officers of any general or limited partner, advisory
director, nor any future general partners, limited partners, advisory director,
or managing directors, if any, of any Investor shall have any personal liability
for performance of any obligation of such Investor under this Agreement in
excess of the respective capital contributions of such general partners, limited
partners or managing directors to such Investor.

          (j)     RULE 144. Whether or not the Company is subject to the
requirements of Section 13, 14 or 15(d) of the Exchange Act, the Company
covenants that it will file any reports required to be filed by it under the
Securities Act and the Exchange Act so as to enable each Investor (subject to
the limitations set forth in this Agreement) to sell Registrable Securities
without registration under the Securities Act within the limitation of the
exemptions provided by (a) Rule 144 under the Securities Act, as such Rule may
be amended from time to time, or (b) any similar rule or regulation hereafter
adopted by the SEC. Upon the request of any Investor, the Company will deliver
to such Investor a written statement as to whether it has complied with such
requirements.

          (k)     HEADINGS. The headings and captions contained herein are for
convenience of reference only and shall not control or affect the meaning or
construction of any provision hereof.

                            [SIGNATURE PAGES FOLLOW]

                                       18
<Page>

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

                              IPCS, INC.

                              By: /s/ Timothy M. Yager
                                  --------------------
                                  Name: Timothy M. Yager
                                  Title: President, Chief Executive Officer and
                                  Secretary

                              [SIGNATURES CONTINUED ON NEXT PAGE]

                                       19
<Page>

                                  AIG ANNUITY INSURANCE COMPANY

                                  AIG LIFE INSURANCE COMPANY

                                  AIG RETIREMENT SERVICES, INC.
                                  (formerly AIG SunAmerica, Inc.)

                                  SUNAMERICA LIFE INSURANCE
                                  COMPANY

                                  THE VARIABLE ANNUITY LIFE
`                                 INSURANCE COMPANY

                                  By: AIG Global Investment Corp. as  Investment
                                  Adviser

                                      By: /s/ Ryan Langdon
                                          ----------------
                                      Name:  Ryan Langdon
                                      Title:   Vice President
                                      Address:
                                      c/o AIG Global Investment Corp.
                                      2929 Allen Parkway, Suite A37-01
                                      Houston, Texas 77019
                                      Facsimile Number (713) 831-1052

                                  [SIGNATURES CONTINUED ON NEXT PAGE]

                                       20
<Page>

                                  VALIC COMPANY II STRATEGIC BOND
                                  FUND

                                  SUNAMERICA INCOME FUNDS -
                                  SUNAMERICA HIGH YIELD BOND FUND

                                  SUNAMERICA SERIES TRUST - HIGH
                                  YIELD BOND PORTFOLIO (POLARIS)

                                  SUNAMERICA INCOME FUNDS -
                                  SUNAMERICA STRATEGIC BOND FUND

                                  VALIC COMPANY II HIGH YIELD BOND FUND

                                  By: AIG Global Investment Corp. as Investment
                                  Sub-Adviser

                                      By: /s/ Ryan Langdon
                                          ----------------
                                      Name:  Ryan Langdon
                                      Title:   Vice President
                                      Address:
                                      c/o AIG Global Investment Corp.
                                      2929 Allen Parkway, Suite A37-01
                                      Houston, Texas 77019
                                      Facsimile Number (713) 831-1052

                                  [SIGNATURES CONTINUED ON NEXT PAGE]

                                       21
<Page>

                                  SPCP GROUP, LLC

                                  By: Silver Point Capital, L.P.
                                      its managing member

                                  By: Silver Point Capital Management, LLC
                                      its general partner

                                  By: /s/ Edward A. Mule
                                      ------------------
                                      Name: Edward A. Mule
                                      Title:  Managing Member

                                  SILVER POINT CAPITAL FUND, L.P.

                                  By: Silver Point Capital General Partner, LLC
                                      its general partner

                                  By: /s/ Edward A. Mule
                                      ------------------
                                      Name: Edward A. Mule
                                      Title:  Managing Member

                                  SILVER POINT CAPITAL OFFSHORE FUND,
                                  LTD.

                                  By: /s/ Edward A. Mule
                                      ------------------
                                      Name: Edward A. Mule
                                      Title:  Director

                                  Address for all Silver Point entities:
                                  c/o Silver Point Capital
                                  600 Steamboat Road
                                  Greenwich, CT 06830
                                  Facsimile Number: (203) 618-2669

                                  [SIGNATURES CONTINUED ON NEXT PAGE]

                                       22
<Page>

                                  TIMOTHY M. YAGER 2001 TRUST, DATED
                                  SEPTEMBER 24, 2001

                                  By: /s/ Timothy M. Yager
                                      --------------------
                                  Name: Timothy M. Yager
                                  Its:  Trustee

                                       23
<Page>

                                    EXHIBIT A

                                JOINDER AGREEMENT

     Reference is made to the Registration Rights Agreement, dated as of July
20, 2004 (the "Registration Rights Agreement"), by and among iPCS, Inc. and the
Investors, a copy of which is attached hereto as EXHIBIT 1. Capitalized terms
which are not otherwise defined herein are used with the meanings ascribed to
such terms in the Registration Rights Agreement.

     Effective upon execution hereof, the undersigned hereby joins the
Registration Rights Agreement as an Investor, with all rights, duties and
obligations of an Investor arising pursuant to the Registration Rights
Agreement, and is hereby made a party to the Registration Rights Agreement as an
Investor.

     IN WITNESS WHEREOF, the undersigned has executed this Agreement as of the
___ day of __________, 200__.

                                          ---------------------------
                                          By:
                                             ------------------------
                                          Name:
                                               ----------------------
                                          Its:
                                               ----------------------

                                           Address for Notice:

                                          ---------------------------
                                          ---------------------------
                                          ---------------------------

                                       24Exhibit
10.1

 

EXECUTION COUNTERPART

 

OPERATING

 

AGREEMENT

 

OF

 

THE NEW
YORK TIMES BUILDING LLC

(a New York Limited Liability Company)

 

December 12,
2001

 

 

TABLE OF
CONTENTS

 

	
  ARTICLE I

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  GENERAL PROVISIONS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  2.01

  	
  Formation of Company

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.02

  	
  Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.03

  	
  Business

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.04

  	
  Office

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.05

  	
  Term

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.06

  	
  Ownership of Company
  Property

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.07

  	
  Qualification;
  Registered Office

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.08

  	
  Tax Status

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.09

  	
  Beneficial Ownership

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  CAPITAL
  CONTRIBUTIONS; PERCENTAGE INTERESTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.01

  	
  Capital Contributions

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.02

  	
  Return of Capital
  Contributions

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.03

  	
  Percentage Interests

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.04

  	
  Default

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.05

  	
  Effect of
  Section 3.04 Assignment Notice

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.06

  	
  No Additional Contributions

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.07

  	
  FC Member’s Put Right

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.08

  	
  No Third Party Rights

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  CAPITAL
  ACCOUNTS; ALLOCATIONS AND DISTRIBUTIONS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.01

  	
  Capital
  Accounts

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.02

  	
  Allocations

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.03

  	
  Distributions

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  MANAGEMENT;
  BOARD OF MANAGERS; ACTIVITIES OF MEMBERS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.01

  	
  Appointment
  and Removal of Managers; No Compensation

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.02

  	
  Rights and
  Powers of the Board of Managers

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.03

  	
  Obligations of the
  Board of Managers

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.04

  	
  Liability of the
  Board of Managers

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.05

  	
  Indemnification
  of Members and the Board of Managers

  	
   

  

 

i

 

	
   

  	
  5.06

  	
  Rights
  of Members

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.07

  	
  Restrictions
  on the Board of Managers; Directions by Members

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.08

  	
  Development
  Plan; Improvements; Use and Leasing; Construction Guarantees.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.09

  	
  Financing

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.10

  	
  Building
  Name; Signage; Rooftop Antennae

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.11

  	
  Entry and
  Use

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.12

  	
  Adjustment
  to NYTC Member Space and FC Member Space

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.13

  	
  Activities
  of Members; Dedicated Individuals of FC Member

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.14

  	
  Unauthorized
  Acts

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.15

  	
  Subleases
  and Brokerage Agreements for FC Member Space; Non-Disturbance by NYTC Member
  for FC Member Tenants

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.16

  	
  Terrorism Insurance
  Extension

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.17

  	
  Subway
  Agreement

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  CONVERSION
  DATE; NYTC EXTENSION LOAN

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.01

  	
  Conversion
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.02

  	
  Conversion Date Actions

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.03

  	
  NYTC
  Extension Loan

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  BOOKS,
  RECORDS, REPORTS AND ACCOUNTING

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.01

  	
  Books
  and Records; Audits and Reports; Budgets

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.02

  	
  Changes in Interests

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.03

  	
  Uninvested Funds and
  Banking

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.04

  	
  Fiscal Year; Accounting
  Method

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.05

  	
  Tax
  Matters Member

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.06

  	
  Section 754 Election

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  TRANSFERS
  OF INTERESTS; DEFAULT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.01

  	
  Transfers of Interests

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.02

  	
  Act
  of Insolvency

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  DISSOLUTION
  AND LIQUIDATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.01

  	
  Events of Dissolution

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.02

  	
  Liquidation upon
  Dissolution.

  	
   

  

 

ii

 

	
  ARTICLE X

  	
  FAIR
  MARKET VALUE; FAIR MARKET RENT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.01

  	
  Appraisal Procedure

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
  ARBITRATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.01

  	
  Arbitration

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII

  	
  ALLOCATION
  METHODOLOGY

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.01

  	
  Allocation of Costs

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.02

  	
  Allocation
  of Net Cash Flow, Net Financing Proceeds and Net Sale Proceeds

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIII

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.01

  	
  Representations
  and Warranties of NYTC Member

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.02

  	
  Representations
  and Warranties of FC Member

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIV

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  14.01

  	
  Execution in Counterparts

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  14.02

  	
  Notices

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  14.03

  	
  Amendments

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  14.04

  	
  Articles of Organization

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  14.05

  	
  Validity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  14.06

  	
  Governing
  Law

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  14.07

  	
  Waiver

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  14.08

  	
  Brokers

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  14.09

  	
  Entire
  Agreement

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  14.10

  	
  No Third Party Beneficiary

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  14.11

  	
  Attorney’s
  Fees

  	
   

  

 

iii

 

 

THE NEW YORK TIMES BUILDING LLC

(a New York Limited Liability Company)

 

OPERATING AGREEMENT

 

THIS OPERATING AGREEMENT
(this “Agreement”) of THE NEW YORK TIMES BUILDING LLC (the “Company”) is made
as of December 12, 2001 by and between FC LION LLC, a New York limited
liability company having an office at One MetroTech Center North, Brooklyn, New
York 11201 (“FC Member”), and NYT REAL ESTATE COMPANY LLC, a New York limited
liability company, having an office at 229 West 43rd Street, New
York, New York 10036 (“NYTC Member”) (together, the “Members”).

 

R E C I
T A L S

 

WHEREAS:

 

A.                                   The
Members wish to form a limited liability company for the purpose of leasing
certain parcels of real property described in Exhibit A attached hereto
and located in the County, City and State of New York (the “Land”), and
developing thereon a certain building and improvements generally described in Exhibit
B attached hereto (as the same may be amended from time to time as
permitted hereunder, the “Development Plan”); and

 

B.                                     Effective
immediately upon execution and delivery of this Agreement, the Members have
become members of the Company; and

 

C.                                     In
order to proceed with the Development Plan, the Company will immediately
hereafter enter into an agreement of lease (as the same may be amended from
time to time as permitted hereunder, the “Ground Lease”) with Empire State
Development Corporation (a/k/a Urban Development Corporation) and the New York
City Economic Development Corporation or affiliates thereof (collectively, the
“Public Parties”), the Ground Lease granting to the Company a leasehold
interest in the Land and the Improvements (as hereinafter defined), and will
also enter into a Site 8 South Land Acquisition and Development Agreement with
the Public Parties relating to the Land and the Improvements (as the same may
be amended from time to time as permitted hereunder, the “LADA”); and

 

D.                                    The
Members intend that NYTC Member shall be the beneficial owner of a portion of
the Land and the Improvements being the NYTC Member Space (as hereinafter
defined) and the sublessee under a Unit Lease therefor (as contemplated under
the Ground Lease and hereinafter defined) and FC Member shall be the beneficial
owner of a portion of the Land and the Improvements being the FC Member Space
(as hereinafter defined) and the sublessee under a Unit Lease therefor (as
contemplated under the Ground Lease and hereinafter defined), but the Members
have determined that it will facilitate the Development Plan if (i) the Company
initially holds leasehold title (for the benefit of NYTC Member and FC Member)
under the Ground Lease (rather than having NYTC Member hold leasehold title to
the NYTC Member Space and FC Member hold leasehold title to the FC Member
Space) and (ii) the Company delays submission of the Property (as hereinafter
defined) to a condominium regime, as herein provided, until the Conversion Date
(as hereinafter defined); and

 

 

E.                                      The
Members are forming the Company to achieve substantially the same treatment, prior
to the Conversion Date, as though the Property was initially subjected to a
condominium regime; and

 

F.                                      The
Members hereby constitute themselves a limited liability company as the Company
for the purposes and on the terms set forth in this Agreement.

 

NOW, THEREFORE, the
Members hereby agree as follows:

 

ARTICLE I

DEFINITIONS

 

1.01                           “Act
of Insolvency” means the following:

 

(a)                                  that
a Person shall commence a voluntary case or other proceeding seeking
liquidation, reorganization or other relief with respect to itself or its debts
under any bankruptcy, insolvency or other similar law now or hereafter in
effect or seeking the appointment of a trustee, receiver, liquidator, custodian
or other similar official of it or any substantial part of its property, or
shall consent to any such relief or to the appointment of or taking possession
by any such official in an involuntary case or other proceeding commenced
against it, or shall make a general assignment for the benefit of creditors, or
shall fail generally to pay its debts as they become due, or shall take any
corporate action to authorize any of the foregoing; or

 

(b)                                 an
involuntary case or other proceeding shall be commenced against a Person
seeking liquidation, reorganization or other relief with respect to it or its
debts under any bankruptcy, insolvency or other similar law now or hereafter in
effect or seeking the appointment of a trustee, receiver, liquidator, custodian
or other similar official of it or any substantial part of its property, and
such involuntary case or other proceeding shall remain undismissed and unstayed
for a period of thirty (30) days, or an order for relief shall be entered
against it under the Federal bankruptcy laws as now or hereafter in effect.

 

1.02                           “Affiliate”
of, or a Person “affiliated” with, a specified Person, means a Person that
directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with, the Person specified, or is a
member of the family of such Person. 
For the purpose of this definition, the terms “control”, “is controlled
by” and “is under common control with” shall mean (a) the possession, directly
or indirectly, of the power to direct or cause the direction of the management
policies of a Person, whether through the ownership of securities or by
contract or otherwise, provided (but without limiting the foregoing)
that no pledge of voting securities of any Person without the current right to
exercise voting rights with respect thereto shall by itself be deemed to
constitute control over such Person, and (b) ownership in such Person of more
than 50% of all equity, capital and profit interests.

 

1.03                           “Agreement”
means this Operating Agreement, as amended, supplemented or restated from time
to time.

 

1.04                           “Allocation
Methodology” shall have the meaning set forth in Article XII.

 

2

 

1.05                           “Architect”
shall have the meaning set forth in the Development Agreement.

 

1.06                           “Bad
Acts Guaranty” shall have the meaning set forth in Section 6.03.

 

1.07                           “Board
of Managers” shall have the meaning set forth in Section 5.01(a).

 

1.08                           “Bridge
Financing”  shall have the meaning
set forth in Section 6.03.

 

1.09                           “Broker”
shall have the meaning set forth in Section 3.01(e).

 

1.10                           “Budget”
shall have the meaning set forth in Section 7.01(c).

 

1.11                           “Business
Day” means any day, other than (i) a Saturday or Sunday, or (ii) a day on
which banks in New York are required or authorized by law or executive order to
close.

 

1.12                           “Capital
Account” shall have the meaning set forth in Section 4.01.

 

1.13                           “Capital
Account Deficit” means, with respect to any Member, the deficit balance, if
any, in such Member’s Capital Account as of the end of the relevant fiscal year
after giving effect to the following adjustments:

 

(i)                                     such
Capital Account shall be deemed to be increased by any amounts which such
Member is obligated to restore to the Company (pursuant to this Agreement or
otherwise) or is deemed to be obligated to restore pursuant to the penultimate
sentence of Treasury Regulation section 1.704-2(g)(1) and 1.704-2(i)(5)
(relating to allocations attributable to nonrecourse debt); and

 

(ii)                                  such
Capital Account shall be deemed to be decreased by the items described in
Treasury Regulation sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6).

 

1.14                           “Capital
Contribution” means, with respect to each Member, the amount of cash and,
if and to the extent non-cash contributions are specifically permitted under
this Agreement,  the Fair Market Value
(valued at contribution) of property actually contributed by the Member to the
Company as of the date in question.  If
a Member’s entire interest in the Company is Transferred in accordance with the
terms of this Agreement, the Capital Account of the Transferor shall become the
Capital Account of the Transferee.  If a
Member Transfers less than 100% of its interest in accordance with the terms of
this Agreement, then a separate capital account shall be established for the
Transferee and the Transferor’s Capital Account will be reduced by, and the
Transferee’s Capital Account shall be credited with, an amount proportionately
equal to the Transferred interest as a percentage of the Transferor’s interest.

 

1.15                           “Certificated
Interests” shall have the meaning set forth in Section 14.13.

 

1.16                           “Closing
Deferral Notice” shall have the meaning set forth in Section 3.07(h).

 

1.17                           “Code”
means the Internal Revenue Code of 1986, as amended.

 

3

 

1.18                           “Commercial
Signage”  means all Signage other
than Temporary Signage, NYTC Signage, NYTC Office Signage, FC Office Signage,
Retail Signage and SPU Signage, but including any NYTC Signage which NYTC
Member has elected to convert to Commercial Signage and with which FC Member
has opted to participate pursuant to Section 5.10(c)(viii) hereof.

 

1.19                           “Company”
means The New York Times Building LLC, the limited liability company that is
the subject of this Agreement.

 

1.20                           “Company
Minimum Gain” means the aggregate amount of gain (of whatever character),
determined for each nonrecourse liability of the Company, that would be
realized by the Company if it disposed of the property subject to such
liability in a taxable transaction in full satisfaction thereof, determined in
accordance with Treasury Regulation section 1.704-2(d).

 

1.21                           “Company
Nonrecourse Deductions” means the excess, if any, of the net increase, if
any, in the amount of Company Minimum Gain during a fiscal year over the
aggregate amount of any distributions during that fiscal year of proceeds of a
nonrecourse liability as defined in Treasury Regulation
section 1.704-2(c).

 

1.22                           “Completion
Date” means the date on which occurs the substantial completion of
construction of the Core and Shell. 
Substantial completion shall be deemed to have been achieved when (i)
the Project, with the exception of punch list work (but including all work
included within the Core and Shell necessary to obtain a permanent certificate
of occupancy), has been completed and certified as complete by the Architect, (ii)
a temporary Certificate of Occupancy has been issued for the Core and Shell
(reflecting zero occupancy), (iii) the lobby, service areas and concierge area
are substantially complete, (iv) a loading dock has been substantially
completed and  is operational and
accessible, (v) at least one main lobby entrance is fully accessible and
permanent sidewalks on 40th and 41st Streets are complete
and (vi) the facade is watertight.  At
the request of either Member made after the Completion Date shall have occurred,
the Members shall execute a written acknowledgement confirming the Completion
Date.  Disputes as to whether or not the
Completion Date has occurred shall be decided by arbitration pursuant to
Article XI hereof.

 

1.23                           “Condominium
Declaration” means the declaration which shall subject the leasehold
interest under the Ground Lease to a condominium regime, the form of which is
attached hereto as Exhibit E, as the same may be amended from time to time as
permitted hereunder.  It is understood
that the form of Condominium Declaration will, before recordation, be amended
to reflect the actual design, configuration of, access to areas within and
systems in, the Improvements.

 

1.24                           “Condominium
Law” means Article 9-B of the Real Property Law of the State of New York.

 

1.25                           “Construction
Loan” means the mortgage loan obtained by the Company to finance the Total
Costs of the Project, and any refinancing or extensions thereof obtained by the
Company.

 

4

 

1.26                           “Construction
Loan Closing Date” means the date on which the Company shall initially
close the Construction Loan.

 

1.27                           “Conversion
Date” shall have the meaning set forth in Section 6.01.

 

1.28                           “Core
and Shell” shall have the meaning set forth in Exhibit F attached hereto
and made a part hereof.

 

1.29                           “Curtain
Wall System” means the entire vertical exterior building enclosure system
which is currently contemplated to include all aluminum, glass, stainless
steel, ceramic and/or terracotta elements, miscellaneous iron, clips and
fasteners required for the complete installation of all elements of such
system, specifically including all vertical building enclosure elements from
the ground to the top of any parapet or roof screen, and specifically excluding
all horizontal elements of the building enclosure system such as roofing,
soffits and skylights.

 

1.30                           “Default
Rate” means a rate per annum equal to the lesser of (i) the sum of six
percent (6%) plus the Prime Rate, compounded annually, or (ii) the maximum rate
permitted by applicable law with respect to the applicable amount payable
hereunder.

 

1.31                           “Defaulting
Member” shall have the meaning set forth in Section 3.04.

 

1.32                           “Delivery
Date” means the date that the landlord under the Ground Lease delivers
Possession (as such term is defined in the Ground Lease) of the Property to the
tenant under the Ground Lease, having the same meaning as set forth under the
Ground Lease.

 

1.33                           “Developer”  means Forest City Ratner Companies and its
permitted successors and assigns as developer under the Development Agreement.

 

1.34                           “Development
Agreement” means that certain Development Agreement dated as of even date
herewith between the Company, NYTC Member, FC Member and Developer, whereby
Developer shall provide to the Company development services with respect to the
Project, as such agreement may be amended from time to time as permitted
hereunder.

 

1.35                           “Development
Plan” shall have the meaning set forth in Recital Paragraph A of this
Agreement.

 

1.36                           “Discretionary
Inside Mechanical Space” shall have the meaning set forth in the Ground
Lease.

 

1.37                           “Dispute”
shall have the meaning set forth in Section 4.4(b) of the Development
Agreement.

 

1.38                           “DUO”
shall have the meaning set forth in the Ground Lease.

 

1.39                           “ESAC”
means Excess Site Acquisition Costs, as defined in the LADA.

 

1.40                           “Excess
NYTC Guaranteed Amount” shall mean the excess, if any, of the NYTC
Guaranteed Amount over NYTC Member’s Share of the Construction Loan.

 

5

 

1.41                           “Extension
Period” shall have the meaning set forth in Section 6.03.

 

1.42                           “Fair
Market Rent” means with respect to any property, the rent that would be
obtained in an arm’s length transaction for the lease of such property for cash
between an informed and willing lessor and an informed and willing lessee, each
with adequate understanding of the facts and under no compulsion to lease, as
determined in good faith by the lessor and lessee of the property in question
or, in the event of the failure of the lessor and lessee of the property in
question to so agree, as determined in accordance with the valuation
arbitration procedure set forth in Section 10.02.

 

1.43                           “Fair
Market Value” means (i) with respect to any item of property, the
value that would be obtained in an arm’s length transaction for the transfer of
ownership of such property for cash between an informed and willing seller and
an informed and willing purchaser, each with adequate understanding of the
facts and under no compulsion to buy or sell, as determined in good faith by
the purchaser and seller of the property in question or, in the event of the
failure of the purchaser and seller of the property in question to so agree, as
determined in accordance with the valuation arbitration procedure set forth in
Section 10.01, and (ii) with respect to the Company, the value as
determined in accordance with the valuation arbitration procedure set forth in
Section 10.01.

 

1.44                           “FCE”
means Forest City Enterprises, Inc. an Ohio corporation, with its principal office
at 1160 Terminal Tower, 50 Public Square, Cleveland, Ohio 44113 and any
successors thereto by merger or by operation of law.

 

1.45                           “FC
Entity” means FC 41st Street Associates, LLC, a New York limited
liability company.

 

1.46                           “FC
Member ESAC Amount” shall have the meaning set forth in
Section 3.07(b).

 

1.47                           “FC
Member ESAC Percentage” shall have the meaning set forth in
Section 3.07(b).

 

1.48                           “FC
Member Excess Land Payment” shall have the meaning set forth in
Section 3.07(b).

 

1.49                           “FC
Member’s Costs” shall mean an amount equal to the additional Capital
Contributions which NYTC Member would have been required to make under
Article 3 hereof on or before the effective date of a purchase by NYTC
Member pursuant to a Section 5.12 Notice under Section 5.12 hereof if
the purchased space had been included in NYTC Member’s percentage share of both
land and other project costs from the date of this Agreement (with interest at
the rate of LIBOR plus one percent per annum from the date(s) such Capital
Contributions would have been required to be made).  FC Member’s Costs shall be calculated by FC Member and reasonable
documentation of such costs shall be delivered to NYTC Member within five (5)
Business Days after request therefor by NYTC Member.  If NYTC Member disputes FC Member’s calculation of such costs,
then such dispute shall be settled by arbitration in accordance with
Section 11.01 hereof.  Pending the
resolution of such dispute, FC Member’s Costs for purposes of Section 5.12
hereof shall be deemed to mean the undisputed amount of such costs.  Upon resolution of such dispute, NYTC Member
shall pay to FC Member the

 

6

 

amount, if any, by
which the amount finally determined to be FC Member’s Costs exceeds the undisputed
amount of such costs.  For the period of
any dispute, with respect to such portion of the disputed amount ultimately
included in FC Member’s Costs (if any), the interest rate referred to in the
first sentence of this Section 1.45 shall be the Prime Rate plus one
percent per annum rather than LIBOR plus one percent per annum.

 

1.50                           “FC
Member’s Put Right” shall have the meaning set forth in
Section 3.07(a).

 

1.51                           “FC
Member Space” means the Retail Space and the portions of the Land and the
Improvements designated as “FC Office” on Exhibit B-1 attached hereto, whether
above grade or below grade, as said Exhibit B-1 may be adjusted from time to
time pursuant to this Agreement.

 

1.52                           “FC
Member Unit Permanent Financing” shall have the meaning set forth in Section 6.03.

 

1.53                           “FC
Office Signage” shall have the meaning set forth in Section 5.10.

 

1.54                           “FC
Put Closing” shall have the meaning set forth in Section 3.07(a).

 

1.55                           “FC
Put Closing Date” shall have the meaning set forth in Section 3.07(a).

 

1.56                           “FC’s
Election Notice” shall have the meaning set forth in Section 3.07(a).

 

1.57                           “FC
Base Amount” shall have the meaning set forth in Section 5.16.

 

1.58                           “Final
Approved Budget” means the Project Budget prepared by the Developer
pursuant to the terms of the Development Agreement and approved in writing by
both Members.

 

1.59                           “GAAP”
shall mean generally accepted accounting principles consistently applied.

 

1.60                           “GMP
Contract” shall have the meaning set forth in the Development Agreement.

 

1.61                           “Governmental
Authorities” shall mean all federal, state, county, city and borough
departments, bureaus, boards, agencies, offices, commissions and other
subdivisions thereof, or of any official thereof, or of any other governmental,
public or quasi-public body or authority.

 

1.62                           “Ground
Lease” shall have the meaning set forth in Recital Paragraph C of this
Agreement.

 

1.63                           “Improvements”
means the buildings and improvements which the Company proposes to construct
and erect on the Land as provided in the Schematic Design Plans, the
Development Agreement and the Development Plan.

 

1.64                           “ING
Bank” shall have the meaning set forth in Section 6.03.

 

1.65                           “ING
Entity” shall mean INGREDUS Site 8 South LLC, a Delaware limited liability
company, a member in FC Member.

 

7

 

1.66                           “ING
Vastgoed” shall mean ING Vastgoed B B.V., a Netherlands private limited
liability company.

 

1.67                           “Insurance”
shall have the meaning set forth in Section 5.16.

 

1.68                           “Insurance
Extension” shall have the meaning set forth in Section 5.16.

 

1.69                           “Interest
Rate” shall have the meaning set forth in Section 3.01(b).

 

1.70                           “IRS”
means the Internal Revenue Service.

 

1.71                           “LADA”
shall have the meaning set forth in Recital Paragraph C of this Agreement.

 

1.72                           “Land”
shall have the meaning set forth in Recital Paragraph A of this Agreement.

 

1.73                           “Land
Share” means the percentage equal to the ratio which the number of Square
Feet within the NYTC Member Space (above grade), in the case of NYTC Member,
and the number of Square Feet within the FC Member Space (above grade), in the
case of FC Member, bears to the total number of Square Feet within both of the
NYTC Member Space (above grade) and the FC Member Space (above grade), as
determined from time to time.  As of the
date of this Agreement, FC Member’s Land Share is 42.3951% and NYTC Member’s Land Share is 57.6049%.  The Members’
Land Shares will be adjusted to reflect changes from time to time in the number
of Square Feet within the FC Member Space (above grade) and the NYTC Member
Space (above grade), all based on the then last revised plans and
specifications for the Improvements, and the Members hereby agree to enter into
written confirmation of such adjusted Land Shares at such times.  On the Conversion Date, the Land Shares will
be adjusted to reflect as-built conditions based upon the number of Square Feet
in the NYTC Member Space (above grade) and the FC Member Space (above grade) as
reflected in the final plans and specifications for the Improvements and such adjusted
Land Shares will be confirmed in writing by the Members.

 

1.74                           “LLC
Law” means the New York Limited Liability Company Act, as amended from time
to time, and any successor to such statute.

 

1.75                           “LIBOR”
means the rate per annum published on the date one (1) Business Day immediately
preceding the first day of the relevant period, as reported in the
section entitled “Money Rates” in The New York Times as the one (1) month
London Interbank Offered Rate for U.S. Dollar deposits (or if The New York Times
shall cease to be publicly available, then LIBOR shall be as reported by any
publicly available source of similar market data selected by the Members that,
in the Members’ reasonable judgment, accurately reflects such London Interbank
Offered Rate).

 

1.76                           “Managers”
shall have the meaning set forth in Section 5.01(a).  Reference to a “Manager” means any one of
the Managers.

 

8

 

1.77                           “Member
Nonrecourse Debt” has the meaning set forth in Treasury Regulation section 1.704-2(b)(4).

 

1.78                           “Member
Nonrecourse Debt Minimum Gain” means an amount, with respect to each Member
Nonrecourse Debt, equal to the Company Minimum Gain that would result if such
Member Nonrecourse Debt were treated as a nonrecourse liability, determined in
accordance with Treasury Regulation section 1.704-2(i).

 

1.79                           “Member
Nonrecourse Deductions” means the excess, if any, of the net increase, if
any, in the amount of Member Nonrecourse Debt Minimum Gain attributable to a
Member Nonrecourse Debt during a fiscal year over the aggregate amount of any
distributions during that fiscal year to the Member that bears the economic
risk of loss for such Member Nonrecourse Debt to the extent such distributions
are from the proceeds of such Member Nonrecourse Debt and are allocable to an
increase in Member Nonrecourse Debt Minimum Gain attributable to such Member
Nonrecourse Debt, determined in accordance with Treasury Regulation
section 1.704-2(i).

 

1.80                           “Members”
means FC Member, NYTC Member and any Person who is admitted as a Member of the
Company in accordance with the terms of this Agreement.  Reference to a “Member” means any one of the
Members.

 

1.81                           “Net
Cash Flow” means, for any given period, all receipts from the conduct of
the business of the Company for such period, from whatever source derived (but
specifically excluding any Net Sale Proceeds, Net Financing Proceeds and any
Signage/Antennae Revenues) which are available for distribution by the Company
following (a) the payment of all operating, debt service and capital expenses
of the Company for such period with respect to which no reserves have been
established (including, without limitation, any principal and interest due
during any such period with respect to any debt of the Company), and (b) the
establishment or replenishment, as deemed reasonably necessary by the Board of
Managers, of reserves for taxes, debt service, maintenance, repairs and other
expenses and other working capital requirements of the Company or for
contingent and unforeseen liabilities of the Company.  At all times, Net Cash Flow shall be calculated separately for
the NYTC Member Space and the FC Member Space using the Allocation Methodology.

 

1.82                           “Net
Financing Proceeds” means the amount by which any cash proceeds received by
the Company from any loan exceeds (a) the amount required to be paid by the
Company in reduction or satisfaction of prior loans or liens upon the Property,
(b) any closing costs incurred or required to be paid by the Company in
connection with such loan, (c) the amount of any such proceeds applied to
fund any reserves as the Board of Managers deems appropriate, and (d) the
amount of any such proceeds applied, to the extent authorized by the Board of
Managers, to fund any capital improvements of the Property.  At all times, Net Financing Proceeds shall
be calculated separately for the NYTC Member Space and the FC Member Space
using the Allocation Methodology.

 

1.83                           “Net
Sales Proceeds” means the amount by which the gross proceeds from the sale
of all or any part of the Property, including the amount of any deferred
payments or purchase money notes received in exchange for the Property, exceed
(a) the amount required to

 

9

 

be paid by the
Company in reduction or satisfaction of prior loans or liens upon the Property,
and (b) closing costs payable to third parties in connection with such
sale.  At all times, Net Sales Proceeds
shall be calculated separately for the NYTC Member Space and the FC Member
Space using the Allocation Methodology.

 

1.84                           “NYTC
Extension Loan” means the prepayment by NYTC Member of the portion of the
Construction Loan equal to the Excess NYTC Guaranteed Amount, which prepayment
shall take place together with the repayment by NYTC Member of NYTC Member’s
Share of the Construction Loan and which prepayment shall constitute a loan by
NYTC Member to FC Member, all pursuant to Section 6.03.

 

1.85                           “NYTC
Guaranteed Amount” means, subject to Section 5.09, a portion of the
Construction Loan (and interest thereon) equal to NYTC Member’s Share of the
Total Costs of the Project (without any credit for amounts theretofore invested
by NYTC Member).

 

1.86                           “NYTC
Interiors Costs” means the cost of the leasehold improvements and building
fixtures (e.g., electrical fixtures and wiring) to be constructed or installed
in the NYTC Member Space, excluding telecommunications equipment (e.g.,
computer and telephones), telecommunication wiring/cabling, furniture and trade
fixtures and other equipment and personal property which is not permanently
affixed to the Improvements.

 

1.87                           “NYTC
Member Space” means the SPU and the portions of the Land and the
Improvements designated as “NYTC Office” on Exhibit B-1 attached hereto,
whether above grade or below grade, which the Members agree shall be a minimum
of 750,000 gross square feet of above grade and below grade space in the
Improvements (as such measurement for the Project is used by the Architect), as
said Exhibit B-1 may be adjusted from time to time pursuant to this Agreement.

 

1.88                           “NYTC
Office Signage” shall have the meaning set forth in Section 5.10.

 

1.89                           “NYTC
Signage” shall have the meaning set forth in Section 5.10.

 

1.90                           “NYTC’s
Signage Costs” shall have the meaning set forth in Section 5.10.

 

1.91                           “Outside
Delivery Date” shall have the meaning set forth in Section 3.07(a).

 

1.92                           “Person”
shall mean any individual, corporation, partnership, limited liability company,
trust, Governmental Authority or other legal entity.

 

1.93                           “Percentage
Interests” shall have the meaning set forth in Section 3.03.

 

1.94                           “Prime
Rate” means the fluctuating annual interest rate announced publicly by
Citibank, N.A., or any successor, at its headquarters in New York City, as its
base commercial lending rate, as the same may change from time to time.

 

1.95                           “Project”
means the acquisition of a leasehold interest in the Property, the construction
of the Core and Shell in accordance with the Development Plan and the
recordation of the Condominium Declaration.

 

10

 

1.96                           “Property”
means collectively the Land and the Improvements.

 

1.97                           “Public
Parties” shall have the meaning set forth in Recital Paragraph C of this
Agreement.

 

1.98                           “Rating
Agency” means Standard & Poor’s Rating Services, a division of the
McGraw-Hill Companies, Inc., or its successor in interest, or if Standard &
Poor’s or a successor thereto shall not exist, then Moody’s Investors Service
Inc. or its successor in interest.  If
neither Standard & Poor’s or a successor in interest thereto nor Moody’s or
a successor in interest thereto shall exist, then the FC Member shall name a
replacement Rating Agency, subject to the consent of NYTC Member, which consent
shall not be unreasonably withheld.

 

1.99                           “Recognition
Agreement” means that certain Recognition Agreement dated as of even date
herewith by and among ING Entity, ING Vastgoed, FC Entity, the Company, NYTC
Member, FC Member, Developer and The New York Times Company, a copy of which is
attached hereto as Exhibit V.

 

1.100                     “Retail
Signage” shall have the meaning set forth in Section 5.10.

 

1.101                     “Retail
Space” means a portion of the FC Member Space which is designated as “FC
Retail” on Exhibit B-1 attached hereto, whether above grade or below grade, as
said Exhibit B-1 may be adjusted from time to time pursuant to this Agreement.

 

1.102                     “Schematic
Design Estimate” means the estimated budget attached hereto as Exhibit D
and setting forth the costs of each component of the Core and Shell as depicted
in the Schematic Design Plans on a line item basis, including an appropriate
contingency and inflation factor for each line item, with each line item
allocated between NYTC Member and FC Member in accordance with the Allocation
Methodology.

 

1.103                     “Schematic
Design Plans” means the building design specifications document attached
hereto as Exhibit C and setting forth the scope, overall design intent and
standards of the Core and Shell, including without limitation (A) the design,
base building standards, general specifications and layout of the floor plates,
structure, elevations, cores, fire stairs, common areas, entrance lobbies
(common and, if applicable, each Member’s), building MEP (base, emergency power
and supplemental systems) and vertical transportation systems, and (B)
specifications for all major components of the Core and Shell.

 

1.104                     “Section 3.01(h)
Capital Contribution” shall have the meaning set forth in
Section 6.03.

 

1.105                     “Section 3.04
Confirmation” shall have the meaning set forth in Section 3.04(b).

 

1.106                     “Section 3.04
Assignment Notice” shall have the meaning set forth in
Section 3.04(b).

 

1.107                     “Section 3.04
Default Notice” shall have the meaning set forth in Section 3.04(b).

 

1.108                     “Section 5.12
Notice” shall have the meaning set forth in Section 5.12.

 

11

 

1.109                     “Section 8.02
Member” shall have the meaning set forth in Section 8.02.

 

1.110                     “Selected
Building Elements” shall have the meaning set forth in
Section 5.07(f).

 

1.111                     “Share
of the Construction Loan” means, as to each Member, the portion of the
Construction Loan equal to the product of the principal amount of the
Construction Loan multiplied by a fraction, the numerator of which is such
Member’s Share of the Total Costs of the Project and the denominator of which is
the Total Costs of the Project.

 

1.112                     “Share
of the Total Costs of the Project” shall mean, as to each Member, the Total
Costs of the Project multiplied by the Percentage Interest of such Member, as
adjusted using the Allocation Methodology.

 

1.113                     “Signage”
shall mean any signs, marquees, graphics, displays, monitors or similar devices
or installations, including all related lighting, supports, and the like, other
than directional signage for NYTC Member’s Space or FC Member’s Space, as the
case may be, intended to be located on the Property during the period
commencing on the day after the Completion Date.

 

1.114                     “Signage/Antennae
Revenues” means all gross receipts of the Company derived from the rental
or license of Temporary Signage, Signage and antennae on any portion of the
exterior of the Improvements, on any scaffold or barricade located on the
Property or elsewhere on the Property, reduced by all costs of the Company
directly related to such receipts, such as installation and maintenance costs.

 

1.115                     “Site
Acquisition Costs” shall have the meaning set forth in LADA.

 

1.116                     “SPU”
means a portion of the NYTC Member Space which is designated as “SPU” on
Exhibit B-1 attached hereto, whether above grade or below grade, as said
Exhibit B-1 may be adjusted from time to time pursuant to this Agreement.

 

1.117                     “SPU
Costs” mean the portion of the Total Costs of the Project allocable to the
SPU, including without limitation, the cost of consultants retained and
research conducted in connection with the intended use thereof, but excluding
costs for telecommunications equipment (e.g. computers and telephones)
telecommunication wiring/cabling, furniture and trade fixtures and other
equipment and personal property which is not permanently affixed to the
Improvements.

 

1.118                     “SPU
Signage” shall have the meaning set forth in Section 5.10.

 

1.119                     “Square
Feet” means square footage computed with reference to the gross square
footage of the Project, above grade, measured from the outside of the exterior
walls for each floor and including, without limitation, mechanical space, floor
cutouts for ducts, interior partition walls and loading areas.  In the case of a double curtain wall,
exterior walls for the purpose of this definition shall mean the innermost of
the two walls.

 

1.120                     “Surviving
Liabilities” shall have the meaning set forth in Section 3.04.

 

12

 

1.121                     “Tax
Controversies” shall have the meaning set forth in Section 7.05.

 

1.122                     “Temporary
Signage” means any signs, marquees, graphics, displays, monitors or similar
devices or installations, including all related lighting, supports and the like
affixed to the exterior of the Improvements or on any scaffold or barricade
located on the Property during the period occurring on and prior to the
Completion Date and intended to be removed from the Property on or before the
Completion Date.

 

1.123                     “Tenant’s
Subway Agreement” means that certain Agreement dated as of even date
herewith among the Company, the New York City Transit Authority, 42nd
St. Development Project, Inc., and The City of New York with respect to
Tenant’s Subway Improvements.

 

1.124                     “Tenant’s
Subway Improvements” shall have the meaning set forth in the Ground Lease.

 

1.125                     “Third
Dispute Arbitrator” shall have the meaning set forth in Section 11.01.

 

1.126                     “Third
Rental Arbitrator” shall have the meaning set forth in Section 10.02.

 

1.127                     “Third
Valuation Arbitrator” shall have the meaning set forth in
Section 10.01.

 

1.128                     “TMP”
shall have the meaning set forth in Section 7.05.

 

1.129                     “Total
Costs of the Project” means all hard and soft costs of acquisition of the
Land and construction of the Improvements contemplated under the Development
Plan, including without limitation tenant work allowances, leasing commissions
and other leasing costs for the initial tenanting of the FC Member Space (no
portion of which tenant work allowances, leasing commissions and other leasing
costs for the initial tenanting of the FC Member Space shall be included in
NYTC Member’s Share of the Total Costs of the Project), all to the extent set
forth in Exhibit H attached hereto and such other costs as may be reasonably
approved by the Members but excluding lease takeover costs and, unless
otherwise required pursuant to Section 5.09, excluding the NYTC Interiors
Costs.  The Total Costs of the Project
shall include the costs for which Capital Contributions are to be made pursuant
to Section 3.01, although responsibility for such costs (and, to the
extent financed, the Construction Loan) shall be allocated as set forth in
Section 3.01, Section 5.09 and Section 12.01.

 

1.130                     “Transfer”
means to sell, transfer, assign, pledge, hypothecate, encumber or otherwise
dispose of an interest in the Company or the Project, or any direct or indirect
interest in a Member, or any entity holding any interest in the Company or in
the NYTC Member Space or the FC Member Space, directly or through intervening
entities, whether voluntarily or by operation of law.  “Transferor”, “Transferee” and “Transferred”
shall have meanings corresponding to the foregoing.

 

1.131                     “True
Base Amount” shall have the meaning set forth in Section 5.16.

 

1.132                     “True-Up
Payment” shall have the meaning set forth in Section 3.01(c).

 

13

 

1.133                     “Unit
Leases” means the leases between the Company, as sublandlord (the
sublandlord’s interest in which will be assigned to the lessor under the Ground
Lease on the Conversion Date) and NYTC Member and FC Member, as subtenants,
respectively, demising the NYTC Member Space to NYTC Member and the FC Member
Space to FC Member, as the case may be, each on terms and conditions acceptable
to the Members and as the same may be amended from time to time as permitted
hereunder.

 

1.134                     “Upset
Amount” shall have the meaning set forth in Section 5.07(f).

 

1.135                     “Vesting
Date” shall have the meaning set forth in the Ground Lease.

 

1.136                     “Work
Authorization” shall have the meaning set forth in Section 3.01(a).

 

ARTICLE II

GENERAL PROVISIONS

 

2.01                           Formation of Company.  The parties to this Agreement have formed
the Company under the LLC Law.

 

2.02                           Name.  The name
of the Company is The New York Times Building LLC, or such other name as all of
the Members may from time to time determine. 
The Board of Managers shall cause to be filed on behalf of the Company
such documents and certificates as may from time to time be required by law.

 

2.03                           Business.  The
business of the Company shall be to (a) acquire and hold fee title or leasehold
title to the Property, (b) construct the Improvements upon the Land and
develop, finance, manage, operate, improve and lease the Property, (c) submit
the Property to a condominium regime under the Condominium Law on the
Conversion Date as provided herein, and (d) carry on any other activity which,
in the opinion of the Board of Managers, may be reasonably necessary or
appropriate in connection with or incidental to the foregoing.

 

2.04                           Office.  The
principal office of the Company shall be at One MetroTech Center North,
Brooklyn, New York, or such other location in the City of New York as the Board
of Managers may select from time to time.

 

2.05                           Term.  The term
of the Company commenced on November 28, 2001 and shall continue until
11:59 p.m., Eastern Standard Time, December 31, 2099, unless dissolved and
terminated at an earlier date in the manner provided in Article IX.

 

2.06                           Ownership of Company Property.  As provided in Sections 2.08 and 2.09 and
except as otherwise set forth in this Agreement, NYTC Member and FC Member are
the beneficial owners of the NYTC Member Space and the FC Member Space,
respectively, subject to the terms of this Agreement.  All other property acquired by the Company, real, personal or
mixed, tangible or intangible, shall be owned or leased by the Company as an
entity, and no Member, individually, shall have any ownership or leasehold
interest therein.

 

2.07                           Qualification; Registered Office.

 

14

 

(a)                                  The
Board of Managers shall cause the Company to become qualified and registered to
do business, pay all property, income, gross receipts, franchise and other
state and local taxes applicable to it and obtain such licenses and permits as
may be required by law in each state or jurisdiction in which any such
qualification, payment or other action is required by law in connection with
the conduct of the Company’s business.

 

(b)                                 The
Members shall cooperate in causing the Company to become properly qualified and
registered as a limited liability company, to pay any taxes and/or other fees
or charges payable by the Company and to obtain such licenses and permits as
may be required in connection with the conduct of the Company’s business in
each state or jurisdiction in which the Board of Managers shall determine that
it is necessary or advisable for any such action to be taken.

 

2.08                           Tax Status.  The Members agree that for federal, state
and local tax purposes, NYTC Member and FC Member (rather than the Company)
shall be treated as the beneficial owners 
of the NYTC Member Space and the FC Member Space, respectively, and that
the Company shall be treated as a partnership for such tax purposes.

 

2.09                           Beneficial Ownership.  NYTC Member and FC Member are the sole
beneficial owners of the NYTC Member Space and the FC Member Space, respectively.  Except as otherwise expressly set forth
herein, each such Member shall receive and be entitled to all of the benefits,
and shall bear and be subject to all of the obligations, attributable to such
Member’s Space.  Except as otherwise set
forth herein, FC Member shall not have a beneficial ownership interest in the
NYTC Member Space and NYTC Member shall not have a beneficial interest in the
FC Member Space.

 

ARTICLE III

CAPITAL CONTRIBUTIONS; PERCENTAGE INTERESTS

 

3.01                           Capital Contributions.

 

(a)                                  Development
Costs.  FC Member will be credited
with a Capital Contribution for development costs incurred by NYTC Member and
reimbursed by FC Member to NYTC Member on or before the date hereof which are
(subject to verification by NYTC Member), for the period through
October 31, 2001, as set forth on Exhibit I attached hereto, and
additional development costs paid by FC Member on or before the date hereof
which are (subject to verification by NYTC Member), for the period through
October 31, 2001, as set forth on said Exhibit I.  In addition, FC Member will make additional
cash Capital Contributions to the Company from time to time between the date
hereof and the Construction Loan Closing Date as and when required to provide
the Company with all funds needed to pay for development costs related to the
Project, excluding (i) Site Acquisition Costs, which costs shall be paid as
provided in Section 3.01(c), (ii) legal fees incurred by either Member relating
to the Project and the negotiation and preparation of all documentation
relating thereto, it being acknowledged said fees shall be the responsibility
of the Member incurring the same but that the same shall if possible be funded
or reimbursed from the Construction Loan although allocated to the Member
responsible therefor, (iii) the SPU Costs, which costs shall be paid as
provided in Section 

 

15

 

3.01(d), (iv)
brokers’ commissions incurred by either Member, which commissions shall be paid
as provided in Section 3.01(e), and (v) transfer taxes and title insurance
premiums incurred by the Company, which costs set forth in this clause (v)
shall be funded by the Members as Capital Contributions pursuant to
Section 3.01(g), or, as applicable, pursuant to Section 3.07 hereof.  Development costs related to the Project
shall be covered by this Section 3.01(a) only if the same have been
pre-approved in a writing signed by each Member, using a work authorization in
the form attached hereto as Exhibit J (each, a “Work Authorization”) to
record the initiation and approval of all work in connection with the Project
(unless otherwise previously approved by the Members in a Budget or otherwise
in writing, and all such costs so approved by both Members shall be development
costs and covered by this Section 3.01(a), if they are to be paid prior to
the Construction Loan Closing Date), it being understood that any Work
Authorizations in effect prior to the date of this Agreement shall remain in
effect and the costs thereof shall remain the responsibility of the Members as
provided in such Work Authorizations. 
Any development costs incurred by or on behalf of either Member which
are not so approved by the other Member in a Work Authorization, a Budget or
otherwise in writing shall be borne solely by the Member which initiated such
work and this Section 3.01(a) shall not cover the same.

 

(b)                                 Funding
on Construction Loan Closing Date. 
On the Construction Loan Closing Date, NYTC Member will make a Capital
Contribution to the Company in an amount equal to NYTC Member’s Percentage
Interest in all development costs funded by FC Member as of such date pursuant
to Section 3.01(a), plus an amount equal to NYTC Member’s Percentage
Interest in the amount of interest which would have accrued at a floating rate
per annum equal to the ninety (90) day London Interbank Offered Rate (as
published from time-to-time in The New York Times) plus one percent (1%) (the
“Interest Rate”) from the date such development costs were funded by FC Member
(including, in the case of amounts covered by the first sentence of
Section 3.01(a), from the date reimbursed to NYTC Member or paid by FC
Member, as applicable, prior to the date hereof) to the Construction Loan
Closing Date.  Such Capital Contribution
will be immediately distributed by the Company to FC Member to reimburse FC
Member for NYTC Member’s Percentage Interest in the Capital Contributions made
by FC Member under Section 3.01(a).

 

(c)                                  Funding
of Site Acquisition Costs.  Each
Member will make Capital Contributions to the Company in amounts determined
pursuant to this Section 3.01(c) at the times set forth herein to pay for
the Site Acquisition Costs, which Capital Contributions may be made by drawings
under the letters of credit referenced in the immediately succeeding paragraph.

 

At the time or times
required under the LADA or any other documents relating thereto, each Member
shall make a Capital Contribution to the Company for the Site Acquisition Costs
in an amount corresponding, except as hereinafter provided in this
Section 3.01(c), to its Land Share. 
It is understood that the LADA will require that the Company or its
Members provide draw down letters of credit to secure the  obligations of the Company under the LADA in
respect of the Site Acquisition Costs and that each Member shall be responsible
for the portion of such draw down letters of credit corresponding to its Land
Share and the fees and costs related thereto. 
In the event any increase in the total amount of the draw down letters
of credit or any other security in lieu thereof is required under the LADA, the
Members shall increase the amount of their respective draw down letters of
credit or deliver such additional security, as the case may

 

16

 

be, in proportion to
their respective Land Shares, and the failure of either Member to do so shall
be deemed for all purposes of this Agreement, including without limitation
Section 3.04 hereof, to be a default by such party in the making of a
Capital Contribution in the amount of the increase in the letter of credit or
security, as the case may be, which such party failed to make.  It is further understood that the LADA will,
in consideration of the funding by the Company of the Site Acquisition Costs
under the LADA, provide for credits to the Company against certain amounts due
under the Ground Lease, which credits shall be allocated to NYTC Member and FC
Member under the Unit Leases in accordance with their respective Land Shares.  At such times as the Land Share of each
Member shall change, (x) the Member whose Land Share increases (the “Increased
Share”) will make a Capital Contribution to the Company on the effective date
of the applicable change in an amount equal to the excess of (A) the Capital
Contributions which would have been required of such Member under this
Section 3.01(c) if its Land Share had been the Increased Share, over (B)
the amount of Capital Contributions actually made by such Member under this
Section 3.01(c), plus interest on each such excess from the date on which
each such larger Capital Contribution would have been made to the date such
excess amount is paid at the Interest Rate, and the Company will immediately
thereafter distribute the amount of such Capital Contribution to the Member
whose Land Share has decreased (the “Decreased Share”), and (y) the Members
shall take whatever action is necessary in order to adjust the letters of
credit then being held under LADA so that the same shall reflect the changed
Land Shares.  If at any time the letters
of credit are drawn upon other than in proportion to the Member’s respective
Land Shares, the Member whose letter of credit was drawn upon in an amount
corresponding to less than its Land Share (the difference between what was
drawn and what would have been drawn had the amount corresponded to such
Member’s Land Share being hereinafter referred to as a “Shortfall”) will make a
Capital Contribution to the Company in an amount equal to the Shortfall, and
the Company will immediately thereafter distribute the amount of such Capital
Contribution to the Member whose letter of credit was drawn upon in excess of
the amount corresponding to its Land Share.

 

On the Completion Date,
FC Member will make a cash Capital Contribution to the Company in an amount
(the “True-Up Payment”) equal to the excess of:

 

(i)                                     the
product of (A) FC Member’s Funding Share (i.e., the percentage set forth on
Exhibit K attached hereto in the column marked “Funding Share” which
corresponds to FC Member’s Land Share as of the Completion Date), multiplied by
(B) the “Completion Date SACs Amount” (as such term is hereinafter defined),
over

 

(ii)                                  the
product of (A) FC Member’s Land Share as of the Completion Date, multiplied by
(B) the Completion Date SACs Amount.

 

Such Capital Contribution
will immediately be distributed by the Company to NYTC Member in reimbursement
for a portion of its Capital Contributions required from the Members in
connection with the Site Acquisition Costs.

 

As used herein, the term
“Completion Date SACs Amount” shall mean the total amount of Site Acquisition
Costs funded by the Company as of the Completion Date, provided, however, that
if as of the Completion Date, the Company has funded more than $85,560,000 in
Site Acquisition Costs, the term “Completion Date SACs Amount” shall mean
$85,560,000.

 

17

 

From and after the
Completion Date, any additional Capital Contributions required for Site
Acquisition Costs shall be made by the Members in accordance with their
respective Land Shares, provided, however, that notwithstanding anything to the
contrary contained in this Section 3.01(c), if as of the Completion Date,
the Company has funded less than $85,560,000 in Site Acquisition Costs, then
from and after the Completion Date until such time as the Company has funded a
total of $85,560,000 in Site Acquisition Costs, Capital Contributions required
for Site Acquisition Costs shall be made by the Members in accordance with
their respective Funding Shares as set forth on Exhibit K.

 

(d)                                 SPU
Costs.  Each Member shall make
Capital Contributions to the Company for the SPU Costs, said Capital
Contributions to be made pursuant to Section 3.01(g) and to be made in an
amount equal to each Member’s Percentage Interest in such SPU costs; provided,
however, that in no event shall the aggregate Capital Contributions of FC
Member for SPU Costs exceed FC Member’s Percentage Interest in Ten Million
Dollars ($10,000,000) of such SPU Costs, NYTC Member being solely responsible
for any such SPU Costs in excess thereof. 
The foregoing provision shall not be construed to relieve the Developer
of its obligations under Section 5.1 of the Development Agreement to pay
SPU Costs in excess of the line item for the SPU Costs set forth in the Final Approved
Budget, subject to the terms of said Section 5.1.

 

(e)                                  Broker’s
Fees.  Pursuant to a separate
agreement, a copy of which has heretofore been provided to FC Member, NYTC
Member is obligated to pay Insignia/ESG, Inc. (the “Broker”) a brokerage commission
in connection with the acquisition by the Company of its interest in the
Property.  The Company will reimburse
NYTC Member for a portion of said brokerage commission in the amount of
$500,000 on the first date on which a portion of said brokerage commission is
payable by NYTC Member to the Broker under said separate agreement, and NYTC
Member will be solely responsible for all other commissions, fees and costs
payable to the Broker.  On the day prior
to the date on which said reimbursement is payable by the Company to NYTC
Member, FC Member will make a Capital Contribution to the Company in the full
amount of said reimbursement.  It is
understood that, to the extent any portion of said brokerage commission is refunded
by the Broker to NYTC Member, NYTC Member shall reimburse the Company for an
allocable portion of such refund (equal to that percentage of $500,000
determined by dividing the amount refunded by the total brokerage fees paid
pursuant to the aforesaid separate agreement) and said reimbursement shall be
distributed to FC Member.  Any brokerage
fees incurred by FC Member or its Affiliates shall be paid by FC Member or such
Affiliates.

 

(f)                                    Curtain
Wall System Costs.  Each Member
shall make Capital Contributions to the Company for the hard and soft costs of
development and construction of the portion of the Core and Shell constituting
the Curtain Wall System, said Capital Contributions to be made pursuant to
Section 3.01(g) and to be made in accordance with the methodology set
forth in Exhibit T attached hereto; provided, however, that in no event shall
the aggregate Capital Contributions of FC Member for the trade contractor costs
for the supply and installation (including consultation) of the Curtain Wall
System, including any necessary mock-ups, as set forth in the Final Approved
Budget (as defined in the Development Agreement) exceed FC Member’s Percentage
Interest in $120 per square foot of the exterior surface areas of the Curtain
Wall System to be developed pursuant to the Development Plan, NYTC Member being
solely

 

18

 

responsible for
such trade contractor costs for the supply and installation (including
consultation) of the Curtain Wall System, including any necessary mock-ups, as
set forth in the Final Approved Budget in excess of said $120 per square foot
amount; provided, however, that the provisions of this sentence shall not be
construed to relieve the Developer of its obligations under Section 5.1 of
the Development Agreement to pay costs of the Curtain Wall System in excess of
the line item for the Curtain Wall System set forth in the Final Approved
Budget, subject to the terms of said Section 5.1.  All other costs of the Core and Shell relating
to the Curtain Wall System (e.g., soft costs, general conditions) shall be
borne by the Members in accordance with the methodology set forth in Exhibit T
attached hereto.

 

(g)                                 Capital
Contributions Prior to the Conversion Date.  From and after the date hereof to and including the Conversion
Date, and except as otherwise provided in this Section 3.01, each Member
shall make Capital Contributions to the Company for its respective Share of the
Total Costs of the Project not financed as and when required for the
completion, maintenance and operation of the Project, including, without
limitation, pursuant to Tenant’s Subway Agreement, the Construction Loan
documents and other applicable agreements, and if otherwise required for the
Project.  Each Member’s Share of the
Total Costs of the Project not financed will be determined by multiplying the
principal amount of the Construction Loan by the Percentage Interest of such
Member and subtracting that product from such Member’s Share of the Total Costs
of the Project.  Capital Contributions
required pursuant to this Section 3.01(g) shall be made within five (5)
Business Days following written request by the Board of Managers or a Member
therefor.

 

(h)                                 Capital
Contributions to Repay the Construction Loan.  On the Conversion Date, each of NYTC Member and FC Member shall
make a Capital Contribution to the Company in an amount equal to its Share of
the Construction Loan, which Capital Contributions shall be applied by the
Company to repay the Construction Loan; provided, however, that (i) the
obligation of FC Member to make such Capital Contribution may be extended, and
the amount to be contributed by or on behalf of NYTC Member pursuant hereto may
be increased, pursuant to Section 6.03; and (ii) in lieu of such Capital
Contribution, it is understood that a Member may (in order to minimize mortgage
recording taxes) cause the portion of the Construction Loan which is to be
repaid from its Capital Contribution to be refinanced if the same includes the
spreader of such portion of the lien of the Construction Loan to such Member’s
Unit and Unit Lease and the release of the Company, the Ground Lease and the
other Member and its Unit and Unit Lease from liability for, and the lien of,
such portion of the Construction Loan, and so long as it also includes, in the
case of refinancing of the FC Member’s Share of the Construction Loan, the
release of the guaranty by The New York Times Company of the Excess NYTC
Guaranteed Amount.  In the event that
(x) the Construction Loan matures, by acceleration or otherwise, prior to the
Conversion Date, (y) the Company is unable to arrange for refinancing or
extension thereof on terms acceptable to both Members and (z) either (i) the
construction lender has accelerated the Construction Loan prior to its stated
maturity by a reason of a default thereunder, or (ii) the stated maturity date
of the Construction Loan has occurred and the construction lender commences any
action or proceeding to obtain repayment of the Construction Loan or foreclose
the mortgage securing the same, or (iii) the stated maturity date of the
Construction Loan has occurred and the construction lender has not commenced
any action or proceeding to obtain repayment of the Construction Loan or
foreclose the mortgage securing the same, but three (3) months have elapsed
since the stated maturity date of the Construction Loan (unless both

 

19

 

Members have
agreed to extend such three (3) month period in their sole and absolute
discretion), then each of NYTC Member and FC Member shall immediately make a
Capital Contribution to the Company in an amount equal to its Share of the
Construction Loan then outstanding and NYTC Member shall no longer have an
obligation to make the NYTC Extension Loan. 
In no event shall the provisions of the preceding sentence be deemed to
extend the obligations of the Members under the first sentence of this
Section 3.01(h) beyond the Conversion Date.

 

(i)                                     Capital
Contributions to Pay the Developer’s Fee.  
Pursuant to the Development Agreement, the Company is obligated to pay
to Developer the Developer’s Fee in connection with the construction of the
Project.  NYTC Member acknowledges that
part of the consideration for this Agreement is that NYTC Member shall pay such
Developer’s Fee.  On the day prior to the
date on which any portion of said Developer’s Fee is payable by the Company to
Developer, NYTC Member shall make a Capital Contribution to the Company in the
full amount of such portion of the Developer’s Fee and the Company shall
immediately, without offset or deduction of any kind, pay such portion of the
Developer’s Fee to Developer.

 

(j)  Capital Contributions for Settlement
Proposals Under the Development Agreement.   If NYTC Member shall cause Owner to assign to Developer a
Dispute pursuant to Section 4.4(b) of the Development Agreement, each
Member shall make a Capital Contribution to the Company in an amount equal to
its respective Percentage Interest (as adjusted based on the Allocation
Methodology, if applicable) in the amount then payable by Owner under
Section 4.4(b) of the Development Agreement and the Company shall
immediately, without offset or deduction of any kind, pay such Capital
Contributions to Developer.

 

(k) Tenant’s Subway Improvements Letter of Credit.  It is understood that the Tenant’s Subway
Agreement will require that the Company or its Members provide letters of
credit to secure certain obligations of the Company under the Tenant’s Subway
Agreement.  Each Member shall be
obligated to post a letter of credit in an amount corresponding to its
Percentage Interest of the total amount of the letters of credit required under
the Tenant’s Subway Agreement and to pay the fees and costs related thereto and
for replacing its letter of credit if the same terminates prior to the date the
letters of credit are released under the Tenant’s Subway Agreement.  If at any time the letters of credit are
drawn upon other than in proportion to the Member’s respective Percentage
Interests, the Member whose letter of credit was drawn upon in an amount corresponding
to less than its Percentage Interest will make a Capital Contribution to the
Company in an amount equal to the difference between what was drawn and what
would have been drawn had the amount corresponded to such Member’s Percentage
Interest, and the Company will immediately thereafter distribute the amount of
such Capital Contribution to the Member whose letter of credit was drawn upon
in excess of the amount corresponding to its Percentage Interest.  Amounts drawn under each letter of credit shall
be treated as a Capital Contribution made by the applicable Member, and the
failure by either Member to post or replace its letter of credit within ten
(10) Business Days after receipt of notice will be deemed a failure by such
Member to make a Capital Contribution in the amount of its required letter of
credit.

 

20

 

3.02                           Return of Capital Contributions.  No Member will have the right to the return
of its Capital Contribution or any right to receive interest on its Capital
Contribution, except in accordance with Article IV, Article VI or
Article IX hereof.

 

3.03                           Percentage Interests.  The Percentage Interest of each Member shall
be the percentage which the gross square footage of above and below grade space
within the NYTC Member Space, in the case of NYTC Member, and the gross square
footage of above and below grade space within the FC Member Space, in the case
of FC Member, bears to the total gross square footage of above and below grade
space within both of the NYTC Member Space and the FC Member Space.  In the event that the Percentage Interests
change between the date hereof and the Conversion Date, the Member whose
Percentage Interest increases will make a Capital Contribution to the Company
on the effective date of the applicable change, an amount equal to the
difference between (A) the Capital Contributions which would have been required
of such Member under this Section 3.03 if its Percentage Interest had been
the larger percentage and (B) the amount of Capital Contributions actually made
by such Member under this Section 3.03, plus interest on each such
difference from the date on which each such larger Capital Contribution would
have been made to the date of such payment at the Interest Rate, and the
Company will immediately distribute such amount to the Member whose Percentage
Interest decreases.   As of the date of
this Agreement, FC Member’s Percentage Interest is 42.0517% and NYTC Member’s
Percentage Interest is 57.9483%.  The
Members’ Percentage Interests will be adjusted to reflect changes from time to
time in the gross square footage of above and below grade space within the FC
Member Space and the NYTC Member Space, all based on the then last revised
plans and specifications for the Improvements, and the Members hereby agree to
enter into written confirmation of such adjusted Percentage Interests at such
times within ten (10) Business Days after written request by either
Member.  On the Conversion Date, the
Percentage Interests will be adjusted to reflect as-built conditions based upon
the final plans and specifications for the Improvements and such adjusted
Percentage Interests will be confirmed in writing by the Members within ten
(10) Business Days after written request by either Member.  For purposes of this Section 3.03,
“gross square footage” shall be computed in the same manner as in the
definition of Square Feet (set forth in Section 1.107 hereof), but
inclusive of both above and below grade space.

 

3.04                           Default.

 

(a)                                  If
a Member (a “Defaulting Member”) fails to contribute to the Company any Capital
Contribution required of it hereunder (including, without limitation, any
Capital Contribution required under Sections 3.01(a), (b), (c), (d), (e), (f),
(g) (h), (i), (j) or (k) hereof), and such failure shall continue for ten (10)
Business Days after notice to the Defaulting Member (but no such notice or cure
period shall be required in the event the Contributing Member is barred by an
automatic stay or court order from giving such notice by reason of or in
connection with an Act of Insolvency of the Defaulting Member) specifying such
failure (with time being of the essence as to such ten (10) Business Day cure
period), then the other Member (the “Contributing Member”) may at its option
make a loan to the Company in an amount equal to the Capital Contribution which
should have been made by the Defaulting Member.  In such event, the Contributing Member will be entitled to
interest on said loan at the Default Rate, which loan will (a) be payable on
demand and (b) be secured by the Defaulting Member’s interest in the Company
and the Defaulting Member’s rights to all distributions under Section

 

21

 

4.03 and amounts
payable or other distributions on the Conversion Date under Article VI or
upon dissolution under Article IX.

 

(b)                                 In
the event that FC Member is the Defaulting Member and the defaulted Capital
Contribution (and accrued and unpaid interest thereon at the Default Rate)
exceeds $5,000,000 (or prior defaulted Capital Contributions with accrued and
unpaid interest thereon, when aggregated with the most recent defaulted Capital
Contribution with accrued and unpaid interest thereon, exceeds $5,000,000),
NYTC Member may, by written notice (the “Section 3.04 Default Notice”)
given to FC Member at any time during which said defaulted Capital Contribution
remains unpaid (and without limiting the rights of NYTC Member under the
Development Agreement), advise FC Member that it intends to acquire the interest
of FC Member (including the FC Member Space) hereunder by reason of said
default.  FC Member shall have (i)
thirty (30) days (in the case of the first time FC Member is the Defaulting
Member), (ii) ten (10) days (in the case of the second time FC Member is the
Defaulting Member) or (iii) five (5) days (in the case of the third time or
anytime thereafter that FC Member is the Defaulting Member) after NYTC Member
gives the Section 3.04 Default Notice to FC Member to fund the defaulted
Capital Contribution (and accrued and unpaid interest accrued thereon at the
Default Rate from the date such Capital Contribution was originally payable to
the date paid).  If FC Member shall fail
within said (x) thirty (30) days, (y) ten (10) days or (z) five (5) days, as
the case may be, to fund the defaulted Capital Contribution, NYTC Member may,
at its sole election, acquire the interest of FC Member in the Company without
further payment by NYTC Member to any Person.  
Said acquisition shall be effected automatically upon written notice
given at any time after such thirty (30), ten (10) or five (5) day period, as
the case may be, by NYTC Member to FC Member electing (in NYTC Member’s sole
discretion) to exercise such remedy (the “Section 3.04 Assignment
Notice”).   Upon the giving of the
Section 3.04 Assignment Notice by NYTC Member in accordance with the terms
and provisions of this Section 3.04(b), NYTC Member shall be deemed to
have and shall in fact have acquired the FC Member’s interest in the Company
and no further action or notice by NYTC Member or FC Member shall be required
and the books and records of the Company shall be modified to reflect that the
NYTC Member has acquired the FC Member’s interest in the Company.  Upon written confirmation (the
“Section 3.04 Confirmation”) by FC Member to NYTC Member (in form
reasonably satisfactory to NYTC Member) that NYTC Member has acquired FC
Member’s interest in the Company and has no claims against NYTC Member with
respect to such acquisition (FC Member acknowledging that the failure of FC
Member to deliver a Section 3.04 Confirmation shall not in any way affect
the acquisition by NYTC Member of FC Member’s interest in the Company), NYTC
Member shall release FC Member and FCE in writing from all liabilities thereof
related to the Project, other than the following liabilities (herein, the
“Surviving Liabilities”):

 

(i)                                     liabilities
for damages to third parties except that FC Member and, to the extent that it
is a party to such contract or has executed a guarantee therefor (including,
without limitation, guarantees of completion), FCE, shall, if such contracts
and/or guarantees as originally executed provide for such a release, be
released from liability under guarantees of completion and contracts entered
into with third parties relating to the Project and which have been

 

22

 

entered into by the Company, by FC Member or by FCE with the prior
written consent of NYTC Member, excluding liability under indemnification
provisions contained in any such contracts or guarantees for events arising
prior to such acquisition (NYTC Member shall be under no obligation to obtain
any such release as a condition of exercising its rights hereunder; however, if
NYTC Member shall acquire the interest of FC Member hereunder, NYTC Member
shall be obligated to make all Capital Contributions to the Company which would
have been the obligation of FC Member hereunder but for such divestiture (but
not to refund any payments or Capital Contributions theretofore made by FC
Member) and, if any of the foregoing contracts and/or guarantees as originally
executed so requires in order to enable FCE to obtain a release from such
guarantee or guarantee of completion by FCE, NYTC Member shall provide to such
third party a replacement guarantee or guarantees of completion by The New York
Times Company, but NYTC Member shall not be obligated to provide any other
guarantees or security to obtain such a release);

 

(ii)                                  liability
for any guarantee of the obligations of the Developer under Section 5.1 of
the Development Agreement (except that such liability shall be terminated if
NYTC Member elects, in its sole discretion, to terminate the Development
Agreement, provided, however, that such liability is not to be terminated if NYTC
Member elects to terminate the Development Agreement by reason of Developer’s
default thereunder); and

 

(iii)                               liability under any
letter(s) of credit or other security then posted by or on behalf of FC Member
or FCE with the Public Parties to fund the Site Acquisition Costs pursuant to
the LADA, as set forth in the immediately succeeding paragraph hereof.

 

In the event that NYTC
Member elects to acquire the interest of FC Member in the Company pursuant to
this Section 3.04, the entire amount theretofore paid by or on behalf of
FC Member on account of Site Acquisition Costs, together with the remaining
balance of any letter(s) of credit or other security then posted by or on
behalf of FC Member hereunder with the Public Parties to fund the Site Acquisition
Costs pursuant to the LADA, shall be deemed liquidated damages on account of
the default (in addition to the right of NYTC Member to acquire the interest of
FC Member hereunder and not to reimburse FC Member for any other amounts
previously expended by FC Member), and such letter(s) of credit or other
security shall remain in place and shall continue to secure (and may be drawn
down to fund) the Site Acquisition Costs, and FC Member shall not be reimbursed
for such forfeited money except

 

23

 

as hereinafter
specifically set forth in this paragraph. 
However, in such event, FC Member shall not be responsible to provide
any additional security for the Site Acquisition Costs required to be posted
after the date NYTC Member acquires FC Member’s interest hereunder (it being
understood, however, that the failure by FC Member to replace any such security
which is due to expire may permit the holder thereof to draw upon the same),
and if, as and to the extent that NYTC Member receives credits for ESAC in
excess of amounts required to reimburse NYTC Member for all Site Acquisition
Costs paid by NYTC Member above NYTC Member’s allocated portion of the Site
Acquisition Costs (taking into account the True-Up Payment, but only if the
same has actually been paid by FC Member to NYTC Member), then to the extent
that neither FC Member nor FCE otherwise owes to NYTC Member any monies
pursuant to this Agreement, the Development Agreement or any other agreement,
FC Member shall be reimbursed (from and to the extent of any additional credits
for ESAC received by NYTC Member) for amounts paid by FC Member for the Site
Acquisition Costs in excess of FC Member’s allocated portion of the Site
Acquisition Costs (taking into account the True-Up Payment, but only if the
same has actually been paid by FC Member to NYTC Member), but not for any other
portion of FC Member’s allocated portion of the Site Acquisition Costs.  In lieu of the payments provided for in the
preceding sentence, if NYTC Member, in its sole discretion, finances said
credits for ESAC, NYTC Member shall upon such financing reimburse FC Member for
its excess portion of the Site Acquisition Costs by paying to FC Member a share
of the net proceeds of such financing in the same ratio as the share of the
credits for ESAC which FC Member would have received under the preceding
sentence in the absence of such a financing bears to the total amount of the
credits for ESAC financed, and upon such payment to FC Member, neither the Company
nor NYTC Member share have any further liability or obligation to FC Member on
account of Site Acquisition Costs.

 

(c)  As security for NYTC Member in the event FC
Member is the Defaulting Member under Section 3.04(a) or
Section 3.04(b), FC Member has delivered to NYTC Member (i) a pledge and
assignment agreement in substantially the form attached hereto as Exhibit L,
and (ii) one or more UCC-1 financing statements evidencing such pledge and
assignment.

 

(d)  The remedies of NYTC Member pursuant to this
Section 3.04 shall be the sole and exclusive remedies of NYTC Member in
the event that FC Member shall default in the making of any Capital
Contribution required of it hereunder, but shall not affect or limit NYTC
Member’s rights or remedies under any guaranty or indemnity given to NYTC
Member by any other Person.

 

3.05                           Effect of Section 3.04 Assignment Notice.
Notwithstanding anything to the contrary contained in this Agreement,
including, without limitation, Article 5 hereof, upon the delivery of a
Section 3.04 Assignment Notice by NYTC Member to FC Member (provided the
same was delivered in accordance with Section 3.04(b) hereof), all rights
of FC Member to participate in the management, control and/or operation of the
Company (including, without limitation, the design, construction and financing
of the Project) shall terminate immediately, and all decisions regarding
management, control and/or operation of the Company (including, without
limitation, all decisions regarding the design, construction and financing of
the Project) shall thereafter be made solely by NYTC Member.

 

24

 

3.06                           No Additional Contributions.  No Member shall be permitted or required to
make any Capital Contributions to the Company except as provided in
Section 3.01 or as otherwise agreed by both Members.  All Capital Contributions shall be made in
cash unless otherwise expressly agreed to in writing by both Members.

 

3.07                           FC Member’s Put Right.  (a) 
If the Delivery Date has not occurred within thirty-two (32) months
after the date of the Ground Lease (the “Outside Delivery Date”), and so long
as FC Member shall not be in default in the payment of any Capital
Contributions required under this Article III, FC Member may elect to require
NYTC Member or its designee to acquire the interest of FC Member in the Company
(including, without limitation, all rights in and to the FC Member Space) (“FC
Member’s Put Right”), subject to and in accordance with the terms and
conditions set forth in this Section 3.07.  FC Member may exercise FC Member’s Put Right by delivering
written notice of such election (“FC’s Election Notice”) to NYTC Member within
ten (10) Business Days after the Outside Delivery Date if Vesting Date shall
have then occurred or, if the Vesting Date shall not have occurred on or before
the Outside Delivery Date, within fifteen (15) days after the earlier to occur
of (i) the Vesting Date, or (ii) the date which is 36 months after the date of
the Ground Lease (time being of the essence in connection with the delivery of
FC’s Election Notice within such 10 Business Day or 15 day period, as the case
may be), setting forth a date (the “FC Put Closing Date”) for the closing of
said acquisition (the “FC Put Closing”), which FC Put Closing Date shall be not
more than sixty (60) days nor less than twenty (20) days after delivery of the
FC Election Notice to NYTC Member.

 

(b)                                 If
FC Member shall fail to timely deliver FC’s Election Notice within the required
period, FC Member’s Put Right under this Section 3.07 shall be null and
void and of no further force or effect. 
If FC Member shall timely deliver FC’s Election Notice, then on the FC
Put Closing Date:

 

(i)                                     FC
Member shall convey by assignment (in form reasonably acceptable to both
Members) all right, title and interest of FC Member in the Company and the FC
Member Space free and clear of any and all liens and encumbrances other than
liens and encumbrances granted by the Company with the prior written consent of
both Members;

 

(ii)                                  If,
as of the FC Put Closing Date, FC Member has made Capital Contributions
pursuant to Section 3.01(c) hereof to fund Site Acquisition Costs pursuant
to LADA:

 

(1)                                  in
an aggregate amount less than $21,700,000, then FC Member shall pay to NYTC
Member an amount equal to (x) $21,700,000 minus (y) the amount of any Site
Acquisition Costs theretofore funded by or on behalf of FC Member, said amount
to be paid by FC Member to NYTC Member at the FC Put Closing; or

 

(2)                                  in
an aggregate amount greater than $21,700,000 and if, as of the FC Put Closing
Date, the total Site Acquisition Costs funded by the Company are less than or
equal to $85,560,000, then NYTC Member shall pay to FC Member an amount (the
“FC Member Excess Land Payment”) equal to (1) the amount of any Site Acquisition
Costs theretofore funded by or on behalf of FC Member minus (2) $21,700,000,
said FC Member Excess Land Payment to be paid by NYTC Member to FC Member at
the FC Put Closing; or

 

25

 

(3)                                  in
an aggregate amount greater than $21,700,000 and if, as of the FC Put Closing
Date, the total Site Acquisition Costs funded by the Company are greater than
$85,560,000, then NYTC Member shall pay to FC Member the FC Member Excess Land
Payment as follows:

 

(A)                              at
the FC Put Closing, NYTC Member shall pay to FC Member an amount equal to (1)
the FC Member Excess Land Payment, minus (2) an amount (the “FC Member ESAC
Amount”) equal to the product of (x) FC Member’s Land Share immediately prior
to the FC Put Closing, multiplied by (y) the total ESAC which have been paid by
the Company as of the FC Put Closing Date (i.e., the excess, if any, of the
total Site Acquisition Costs funded by the Company as of the FC Put Closing
Date over $85,560,000); and

 

(B)                                If,
as and when the Company actually receives credits for ESAC, then until such
time as FC Member has received a total payment pursuant to this clause (B)
equal to the FC Member ESAC Amount (together with any interest accruing under
the LADA from and after the FC Put Closing Date on the uncredited portion of
the FC Member ESAC Amount), NYTC Member shall pay to FC Member the “FC Member
ESAC Percentage” (as hereinafter defined) of each such credit for ESAC received
by the Company.  The term “FC Member
ESAC Percentage” shall mean a fraction, expressed as a percentage, the
numerator of which is the FC Member ESAC Amount and the denominator of which is
the total of all ESAC under the LADA. 
NYTC Member shall cause The New York Times Company to provide to FC
Member a guaranty (in a form similar to that attached hereto as Exhibit O) of
NYTC Member’s obligation to pay the FC Member ESAC Amount (together with any
interest accruing under the LADA from and after the FC Put Closing Date on the
uncredited portion of the FC Member ESAC Amount), provided, however, that
neither NYTC Member nor NYTC shall have any liability to FC Member with respect
to the FC Member ESAC Amount if and to the extent NYTC Member fails to receive
the corresponding ESAC credit for any reason whatsoever.

 

In lieu of the payments provided for in this clause (B) of this
Section 3.07(b)(ii)(3), if NYTC Member, in its sole discretion, finances
said credits for ESAC, NYTC Member shall, upon such financing, reimburse FC
Member for the FC Member ESAC Amount by paying to FC Member the FC Member ESAC
Percentage of the net proceeds of such financing, and upon such payment,
neither the Company nor NYTC Member shall have any further obligation to FC
Member on account of any unpaid balance of the FC Member ESAC Amount;

 

(c) NYTC Member shall pay to FC Member the amount NYTC Member would
have contributed pursuant to Section 3.01(b) as if the date of the FC Put
Closing had been the Construction Loan Closing Date;

 

26

 

(d) FC Member shall pay all transfer taxes, if any, in connection with
such conveyance, shall indemnify NYTC Member against any future assessment of
transfer taxes in connection with such conveyance and shall execute all
required transfer tax returns;

 

(e) NYTC Member shall release in writing and shall cause The New York
Times Company and the Company to release in writing FC Member, Developer, FCE
and ING Vastgoed from all obligations and liabilities of FC Member, Developer,
FCE and ING Vastgoed to NYTC Member, The New York Times Company and the
Company.  FC Member shall release in
writing and shall cause Developer, FCE and ING Vastgoed to release in writing
the Company, NYTC Member and The New York Times Company from all obligations
and liabilities of the Company, NYTC Member and The New York Times Company to
FC Member, Developer, FCE and ING Vastgoed;

 

(f) NYTC Member shall cooperate in obtaining the release of FC Member,
FCE, Developer and ING Vastgoed from all obligations and liabilities relating
to the Project, including (i) to the Public Parties (by, among other things,
replacing any letters of credit and/or guarantees posted or given by or on
behalf of FC Member, FCE or ING Vastgoed) and (ii) to third parties under
contracts and/or guarantees if such contracts and/or guarantees as originally
executed provide for such a release and have been entered into by the Company,
FC Member, FCE or ING Vastgoed with the prior written consent of NYTC Member,
but excluding liability under indemnification provisions contained in any such contracts
and/or guarantees for obligations and liabilities arising prior to such
acquisition; and

 

(g)  For illustration purposes
only, Exhibit G hereto sets forth examples of the calculations described in
Section 3.07(b)(ii)(3).

 

(h)  Notwithstanding anything to the contrary
contained in this Section 3.07, in the event FC Member has timely
delivered FC’s Election Notice but the Vesting Date has not occurred on or
before the date which is ten (10) days prior to the date which would otherwise
have been the FC Put Closing Date, the FC Put Closing Date may (at FC Member’s
discretion by written notice, hereinafter called a “Closing Deferral Notice”,
given to NYTC Member on or before the date which is five (5) days prior to the
date which would otherwise have been the FC Put Closing Date) be deferred until
a date selected by FC Member which is not later than thirty (30) days after the
Vesting Date.  If FC Member elects to
defer the FC Put Closing Date in accordance with this subsection (h), then
from and after the giving of a Closing Deferral Notice, (i) FC Member shall
thereafter not be responsible to make any Capital Contributions pursuant to
this Agreement, (ii) FC Member shall not be entitled to participate in any vote
or decision to be made by the Members pursuant to this Agreement including,
without limitation, any Company action described in Section 5.07(a)
hereof, (iii) FC Member shall not be entitled to (and shall not) exercise any
other rights or take any action as a Member hereunder or on behalf of the Company
and FC Member shall indemnify and hold harmless NYTC Member and NYTC against
any losses, claims, damages or liabilities (including reasonable legal or other
expenses reasonably incurred in defending against any such loss, claim, damages
or liability) arising out of FC Member’s breach of the provisions of this
clause (iii), and (iv) provided and for so long as FC Member does not exercise
any rights or take any action as a Member hereunder or on behalf of the
Company, NYTC Member shall indemnify and hold harmless FC Member, Developer,
FCE and ING Vastgoed against any losses, claims, damages or liabilities
(including reasonable legal

 

27

 

or other expenses
reasonably incurred in defending against any such loss, claim, damages or
liability) arising out of NYTC Member’s actions or inactions on behalf of the
Company during the period between the giving of a Closing Deferral Notice and
the FC Put Closing Date.  

 

In the event that FC
Member has timely delivered FC’s Election Notice but the Vesting Date has not
occurred on or before the date which is five (5) days prior to the FC Put
Closing Date, and FC Member does not elect to defer the FC Put Closing Date as
hereinabove provided, FC Member may nevertheless elect to defer, until the date
which is thirty (30) days after the Vesting Date, the payment required to be
made to NYTC Member at the FC Put Closing pursuant to
Section 3.07(b)(ii)(1) hereof (the “FC Put Closing Payment”) by giving
written notice of such election at least five (5) days prior to the FC Put
Closing Date and in such event the FC Put Closing shall proceed and FC Member
shall deposit with NYTC Member at the FC Put Closing a letter of credit in form
reasonably acceptable to NYTC Member in the amount of the FC Put Closing
Payment, which letter of credit shall be held by NYTC Member as security for
the payment of the FC Put Closing Payment. 
In such event, if the FC Put Closing Payment is not thereafter paid to
NYTC Member on or before the date which is thirty (30) days after the Vesting
Date, NYTC Member may draw upon such letter of credit in satisfaction of the FC
Put Closing Payment.  Upon payment by FC
Member of the FC Put Closing Payment to NYTC Member, or, upon termination of
the Ground Lease and the LADA as may be permitted thereunder by reason of the
failure of the Vesting Date to have occurred, whichever is earlier, such letter
of credit shall immediately be returned to FC Member.

 

(i)  Notwithstanding anything to the contrary
contained in this Section 3.07, if the Put Closing Date shall be deferred
pursuant to Section 3.07(h) and the Company shall thereafter exercise its
right to terminate the LADA and the Ground Lease as may be permitted
thereunder, FC’s Election Notice theretofore given by FC Member shall be deemed
void and of no effect upon the date that the Ground Lease and LADA are actually
terminated by reason of the exercise of such right.  In such event, the cash, letter of credit or guaranty deposited
with NYTC Member pursuant to Section 3.07(h) shall be immediately returned
to FC Member.

 

3.08                           No Third Party Rights.  Nothing contained in this Article III
nor any other provision of this Agreement shall be construed to create any
rights or benefits in any Person, other than the Members, and their respective
legal representatives and permitted transferees, successors and assigns,
subject to the limitations on transfer contained herein.

 

ARTICLE IV

CAPITAL ACCOUNTS; ALLOCATIONS AND DISTRIBUTIONS

 

4.01                           Capital Accounts.  The Company shall maintain a separate
capital account (“Capital Account”) for each Member in accordance with federal
income tax accounting principles and Treasury Regulation
section 1.704-1(b)(2)(iv). 
Notwithstanding the foregoing or any other provision of this Agreement,
the Members intend that, for federal, state and local tax purposes, each
Member, rather than the Company, shall from inception of the Ground Lease, be
treated as owning one hundred percent (100%) of the NYTC Member Space, in the
case of NYTC Member, and the FC Member Space, in case of FC Member.

 

28

 

4.02                           Allocations.  (a)           Each
Member shall be allocated one hundred percent (100%) of every item of income,
gain, loss, deduction and credit that is attributable to such Member’s Space
using the Allocation Methodology.  No
Member shall be allocated any portion of any item of income, gain, loss,
deduction or credit that is attributable to the other Member’s Space using the
Allocation Methodology.  To the extent
that the Company accrues or incurs any item that is attributable to Company
property, rather than to a particular Member’s Space, such item shall be
allocated between the Members in accordance with their respective Percentage
Interests, and in conformity with Code Section 704 and the regulations
promulgated thereunder.  Where there is
any federal, state or local tax election that affects solely a particular
Member’s Space, and has no current or future tax effect on the other Member,
the Member owning such Member’s Space shall have the sole authority to make, or
cause the Company to make, such election. 
All other elections shall be made by the TMP in its discretion.

 

(b)                                 Deficit
Capital Account and Nonrecourse Debt Rules.  Notwithstanding the general allocation rules set forth above, the
following special allocation rules shall apply under the circumstances
described therein.

 

(1)                                  Limitation
on Loss Allocations.  The Net Losses
allocated to any Member pursuant to Section 4.02(c) with respect to any
fiscal year shall not exceed the maximum amount of Net Losses that can be so
allocated without causing such Member to have a Capital Account Deficit at the
end of such fiscal year.  All Net Losses
in excess of the limitation set forth in this Section 4.02(d)(1) shall be
allocated to Members which are not subject to the foregoing limitation.

 

(2)                                  Qualified
Income Offset.  If in any fiscal
year a Member unexpectedly receives an adjustment, allocation or distribution
described in Treasury Regulation section 1.704-1(b)(2)(ii)(d)(4), (5) or
(6), and such adjustment, allocation or distribution causes or increases a
Capital Account Deficit for such Member, then, before any other allocations are
made under this Agreement or otherwise, such Member shall be allocated items of
income and gain (consisting of a pro rata portion of each item of Company
income, including gross income and gain) in an amount and manner sufficient to
eliminate such Capital Account Deficit as quickly as possible.

 

(3)                                  Company
Minimum Gain Chargeback.  If there is
a net decrease in Company Minimum Gain during any Company fiscal year, each
Member shall be allocated items of income and gain for such fiscal year (and,
if necessary, for subsequent fiscal years) in proportion to and to the extent
of, an amount equal to such Member’s share of the net decrease in Company
Minimum Gain, in accordance with Treasury Regulation section 1.704-2(f)
and (g).

 

(4)                                  Member
Nonrecourse Debt Minimum Gain Chargeback. 
If there is a net decrease in Member Nonrecourse Debt Minimum Gain attributable
to a Member Nonrecourse Debt during any Company fiscal year, each Member who
has a share of the Member Nonrecourse Debt Minimum Gain attributable to such
Member Nonrecourse Debt, determined in accordance with Treasury Regulation
section 1.704-2(i), shall be specially allocated items of Company income
and gain for such fiscal year (and, if necessary, subsequent fiscal years) in
an amount equal to such Member’s share of the net decrease in Member

 

29

 

Nonrecourse Debt
Minimum Gain attributable to such Member Nonrecourse Debt, determined in
accordance with Treasury Regulation section 1.704-2(i).

 

(5)                                  Company
Nonrecourse Deductions.  Company
Nonrecourse Deductions for any Company fiscal year shall be specially allocated
among the Members in proportion to their Percentage Interests.

 

(6)                                  Member
Nonrecourse Deductions.  Any Member
Nonrecourse Deduction for any Company fiscal year shall be specially allocated
to the Member who bears the economic risk of loss with respect to the Member
Nonrecourse Debt to which such Member Nonrecourse Deductions are attributable
in accordance with Treasury Regulation section 1.704-2(i).

 

(c)                                  Allocation
of Nonrecourse Liabilities. 
Pursuant to Treasury Regulations Section 1.752-3(a), Company
nonrecourse liabilities shall be allocated among the Members as follows:

 

(1)                                  First,
to each Member to the extent of its respective share of Company Minimum Gain.

 

(2)                                  Then,
to each Member in the amount of any taxable gain that would be allocated to
that Member under Code section 704(c) or in connection with a revaluation
of Company property pursuant to Treasury Regulation
section 1.704-1(b)(2)(iv)(f) or (r), if the Company disposed of (in a
taxable transaction) all Company property subject to one or more nonrecourse
liabilities of the Company in full satisfaction of such liabilities and for no
other consideration.

 

(3)                                  Then,
any portion of excess nonrecourse liabilities of the Company relating to either
the FC Member Space or the NYTC Member Space, utilizing the Allocation
Methodology, shall be allocated to the FC Member or the NYTC Member,
respectively.

 

(4)                                  Then,
the balance of any excess nonrecourse liabilities will be allocated among the
Members in accordance with their Percentage Interests.

 

4.03                           Distributions.  The Board of Managers shall make
distributions to the Members, as follows:

 

(a)                                  Net
Cash Flow; Net Financing Proceeds; and Net Sales Proceeds.  The Company shall distribute the Net Cash
Flow, Net Financing Proceeds and Net Sales Proceeds of the Company to the
Members from time to time as determined by the Board of Managers, but not less
often than annually, in the following order of priority:

 

(1)                                  Net
Cash Flow, Net Financing Proceeds and Net Sales Proceeds received in cash related
to the NYTC Member Space will be distributed to NYTC Member, and Net Cash Flow,
Net Financing Proceeds and Net Sales Proceeds related to the FC Member Space
will be distributed to FC Member, using the Allocation Methodology.

 

30

 

(2)                                  All
other Net Financing Proceeds and Net Sales Proceeds received in cash will be
distributed in proportion to and to the extent of the respective positive
Capital Account balances of the Members and then in accordance with their
Percentage Interests.

 

If all Members so
determine, Net Sales Proceeds received in the form of deferred payment
obligations or one or more purchase money notes may be distributed to the
Members in kind in the same proportions as set forth in the preceding
subsections 4.03(a)(1) and (2), prior to the receipt of cash proceeds thereof,
together with any security or collateral therefor.  Unless the Members so determine to distribute such assets in
kind, Net Sales Proceeds received in such form shall be retained by the Company
until paid.

 

(b)                                 Signage/Antennae
Revenues.   Until the Completion
Date and subject to Section 5.10, 
the Company will distribute Signage/Antennae Revenues to the Members in
accordance with their respective Percentage Interests from time to time as
determined by the Board of Managers, but not less often than annually.  After the Completion Date, Signage/Antennae
Revenues will be distributed in accordance with Section 5 of
Article IX of the Condominium Declaration, whether or not the same has
been recorded.

 

(c)                                  Defaulted
Capital Contributions.  It is
understood that any distribution to be made pursuant to this Section 4.03
to a Defaulting Member shall be payable to the Contributing Member in respect
of the loan which it has made to the Defaulting Member pursuant to
Section 3.04, but only to the extent of amounts outstanding under such
loan.  Any excess thereof shall be
deposited into an interest-bearing account maintained by the Company to be applied
to any Capital Contributions required from the Defaulting Member over the
twelve (12) month period following the deposit made pursuant to this
Section 4.03.  To the extent any
amount as so deposited is not required for a Capital Contribution within said
twelve (12) month period, then the amount so deposited shall be distributed to
the Defaulting Member, provided, however, that FC Member shall in no event be
entitled to any distributions hereunder from and after the date NYTC Member
sends a Section 3.04 Assignment Notice, provided the same is given in
accordance with Section 3.04(b) hereof.

 

(d)                                 Payments
Under Developer’s Errors and Omissions Policy.  In the event the Company receives a payment made by or on behalf
of Developer which shall have been reduced by reason of participation by any
Affiliate of Developer directly or indirectly in the ownership of the Company
(including, without limitation, any direct payment to the Company by the
insurer pursuant to that certain errors and omissions policy procured by
Developer under the Development Agreement), then the distribution of such
payment to the Members shall be adjusted to reflect such reduction, NYTC being
entitled to distribution of the portion of such payment which would have been
distributable to it had such payment not been reduced and the balance of such
payment shall be distributed to FC Member for the benefit of holders of direct
or indirect interest therein which are not Affiliates of Developer.

 

 

ARTICLE V

MANAGEMENT; BOARD OF MANAGERS; ACTIVITIES OF MEMBERS

 

 

31

 

On and prior to the Conversion Date, the Company shall be managed (and
all decisions regarding the Property and the Project shall be made) in
accordance with the provisions of this Agreement.  After the Conversion Date, the Company shall be managed (and all
decisions regarding the Property and the Project shall be made) in accordance
with the Condominium Declaration.

 

5.01                           Appointment and Removal of Managers; No Compensation.

 

(a)                                  The
Board of Managers of the Company shall be comprised of one manager appointed by
NYTC Member and one manager appointed by FC Member (each, a “Manager”, and
together, the “Managers”).  NYTC Member
hereby appoints David A. Thurm as its initial Manager hereunder and FC Member
hereby appoints MaryAnne Gilmartin as its initial Manager hereunder.  Each of NYTC Member and FC Member may revoke
its appointment of a Manager and appoint a successor Manager in lieu thereof by
written notice given to the other Member, said revocation and appointment to be
effective only upon receipt by said other Member of notice thereof.  The Board of Managers shall perform the
duties set forth in this Agreement, subject to and in accordance with the terms
hereof.

 

(b)                                 The
Board of Managers shall not be entitled to receive any compensation for the
performance of its duties and obligations as the Board of Managers under this
Agreement unless otherwise determined by the Members.

 

5.02                           Rights and Powers of the Board of Managers.  The Board of Managers shall take no action
except those actions which have been unanimously approved by the Managers.  Except as otherwise provided in this
Agreement and specifically subject to Section 5.07, the Board of Managers
shall have exclusive management and control of the business and affairs of the
Company, and shall have the exclusive full power and authority to manage,
conduct and operate the Company’s business, including, without limitation, the
following specific powers:

 

(a)                                  to
take any and all actions which it deems necessary or advisable in connection
with the business of the Company, including, without limitation, opening,
maintaining and closing Company bank accounts and entering into any contract,
agreement, undertaking or transaction;

 

(b)                                 to
register or qualify the Company under any applicable federal or state laws, or
to obtain exemptions under such laws, if such registration, qualification or
exemption is deemed necessary by the Board of Managers;

 

(c)                                  to
cause to be paid on or before the due date thereof all amounts due and payable
by the Company to any Person;

 

(d)                                 to
borrow funds in the name of and on behalf of the Company and to secure any such
loans with the Company’s properties and assets by the granting of mortgages or
other security interests;

 

(e)                                  to
prepay, in whole or in part, refinance, recast, increase, modify or extend any
mortgage which may affect any of the properties or assets owned by the Company,
and, in

 

32

 

connection
therewith, to execute for and on behalf of the Company any extensions, renewals
or modifications of such mortgages on any such properties or assets;

 

(f)                                    to
employ, discharge, contract with or terminate contracts with such agents,
employees, hotel operators, managers, accountants, attorneys, consultants and
other Persons as it deems necessary or appropriate to carry out the business
and affairs of the Company, to appoint officers of the Company and define their
duties and authority, and to pay such fees, expenses, wages and other
compensation to any such Person as it shall deem appropriate;

 

(g)                                 to
comply with the LADA, the Ground Lease, DUO and Tenant’s Subway Agreement;

 

(h)                                 to
pay any and all fees and operating expenses (excluding Board of Manager’s
overhead) and to make any and all expenditures which it deems necessary or
appropriate in connection with the organization of the Company, the management
of the affairs of the Company and the carrying out of its obligations and
responsibilities under this Agreement;

 

(i)                                     to
commence or defend litigation related to the Company or any Company assets;

 

(j)                                     to
make any financial accounting decisions for or on behalf of the Company;

 

(k)                                  to
assume and exercise any and all rights, powers and responsibilities granted to
members under the LLC Law;

 

(l)                                     to
sell the Company’s properties and assets and/or terminate the Company’s
business; and

 

(m)                               to
execute and deliver, in the name and on behalf of the Company, any documents
and instruments which it deems necessary or appropriate in connection with the
above rights and powers.

 

5.03                           Obligations of the Board of Managers.

 

(a)                                  The
Board of Managers shall take all action which may be necessary or appropriate
for the development, maintenance, preservation and operation of the properties
and assets of the Company in accordance with the provisions of this Agreement
and applicable laws and regulations.

 

(b)                                 The
Board of Managers shall be under a duty to perform its duties in good faith,
using due care and reasonable diligence in the management of the Company’s
business and shall conduct the affairs of the Company in good faith and in
accordance with the terms of this Agreement and in a manner consistent with the
purposes set forth in Section 2.03.

 

(c)                                  The
Board of Managers shall take such action as may be necessary or appropriate in
order to license, register or qualify the Company under the laws of any
jurisdiction

 

33

 

in which the
Company is doing business or owns or uses property or in which such licensing,
registration or qualification is necessary in order to protect the limited
liability of the Members or to continue in effect such licensing, registration
or qualification.  If required by law,
the Board of Managers shall file or cause to be filed for recordation in the
office of the appropriate authorities of the State of New York, and in the
proper office or offices in each other jurisdiction in which the Company is
licensed, registered or qualified, such documents as are required by the
applicable statutes, rules or regulations of any such jurisdiction or as are
necessary to reflect the identity of the Members and their Percentage
Interests.

 

5.04                           Liability of the Board of Managers.

 

(a)                                  Except
as otherwise specifically provided herein or under the LLC Law, neither the
Board of Managers, any Affiliate thereof nor the members, partners, directors,
officers, shareholders, employers, agents or representatives of the Board of
Managers nor such Affiliate (other than the members, partners, directors,
officers, shareholders, employees, agents or representatives of any Affiliate
of the Board of Managers which may be performing management and other related
services for the Company, as to which Persons the terms of the applicable
management or other agreement shall apply) shall be liable, responsible or
accountable in damages or otherwise to the Company or to any Member for any act
or omission performed or omitted on behalf of the Company in good faith and in
a manner reasonably believed by it to be within the scope of the authority
granted to it by this Agreement and in the best interests of the Company,
unless a court of competent jurisdiction, upon entry of a final judgment, shall
find that such act or omission was due to willful misconduct, gross negligence,
bad faith, fraud or breach of fiduciary duty.

 

(b)                                 Except
as otherwise specifically provided herein or under the LLC Law, the Board of
Managers shall not be personally liable for the return or payment of all or any
portion of the Capital Contribution of or distributions to any Member (or any permitted
successor, assignee or transferee thereof), it being expressly agreed that any
such return of Capital Contribution or distributions pursuant to this Agreement
shall be made solely from the assets of the Company (which assets shall not
include any right of contribution from the Board of Managers).

 

5.05                           Indemnification of Members and the Board of Managers.  The Company shall indemnify and exonerate to
the fullest extent permitted by law (subject to the limitations of this
Section 5.05) each Member, the Board of Managers and each member, partner,
director, officer, shareholder, employee, agent and representative thereof,
against any losses, claims, damages or liabilities (including reasonable legal
or other expenses reasonably incurred in defending against any such loss,
claim, damages or liability), joint or several, arising out of such Member’s or
the Board of Managers’ activities for or on behalf of the Company performed in
good faith and in a manner reasonably believed by it to be within the scope of
the authority granted to it by this Agreement and in the best interests of the
Company, except for acts which are determined by a court of competent
jurisdiction, upon entry of a final judgment, to constitute gross negligence,
bad faith, willful misconduct, fraud or breach of fiduciary duty.  The Company shall advance and pay the
expenses reasonably incurred by a Person indemnified hereunder in settling a
claim or in defending a civil action brought by a third party that is not a
Member prior to its final disposition if such action relates to duties and
services performed by the indemnified Person on behalf of the

 

34

 

Company, upon
receipt of an undertaking of the indemnified Person to repay such expenses if
it is adjudicated not to be entitled to indemnification.  In no event, however, shall any Member be
liable for the indemnification set forth herein or required to make a Capital
Contribution to the Company in order to enable the Company to satisfy its obligations
under this Section 5.05.

 

5.06                           Rights of Members.  Except as specifically set forth herein, no
Member shall (i) be permitted to take part in the management, control or
conduct of the business or affairs of the Company; (ii) have the right to
vote on any matters; (iii) have the authority or power in its capacity as
a Member to act as agent for or on behalf of the Company or any other Member,
to do any act which would be binding on the Company or any other Member, or to
incur any expenditures or indebtedness on behalf of or with respect to the
Company or any other Member or (iv) have any liability or obligation to any
Person (including, without limitation, any member of the Board of Managers) by
reason of this Agreement or the performance of its obligations hereunder.

 

5.07                           Restrictions on the Board of Managers; Directions by
Members.  (a) Without
the approval of all of the Members but subject to Section 3.05,
Section 5.07(b) and Section 5.07(c) and the authority of the TMP
under Articles IV and VII, the Board of Managers shall not have authority on
behalf of the Company to take any of the following actions:

 

(i)                                     commit
any act or fail to act, in either case in contravention of this Agreement;

 

(ii)                                  enter
into any settlement on behalf of or confess a judgment against the Company or
cause the Company to seek protection against creditors under any bankruptcy law
or in any court;

 

(iii)                               convert
property of the Company to its own use, or assign any rights in specific
property of the Company for other than a purpose as permitted by this
Agreement;

 

(iv)                              execute
or deliver any general assignment for the benefit of the creditors of the
Company or take any action that would constitute an Act of Insolvency with
respect to the Company;

 

(v)                                 contract
with or make payments to the Board of Managers or any Affiliate of the Board of
Managers, except as otherwise permitted under this Agreement;

 

(vi)                              admit
any Person as a member or issue such Person a membership interest in the
Company;

 

(vii)                           adopt,
amend, restate or revoke the articles of organization or this Agreement;

 

(viii)                        approve
the dissolution of the Company;

 

(ix)                                approve
a merger or consolidation of the Company with another entity;

 

35

 

(x)                                   approve
any change to the Development Plan or the Schematic Design Plans or the
Schematic Design Estimate;

 

(xi)                                sell
or otherwise transfer any property of the Company;

 

(xii)                             borrow
monies, on a secured or unsecured basis, or enter into documentation with
regard to such borrowing, or any amendments thereto;

 

(xiii)                          adopt
any Budget or any amendment thereto (including, without limitation, the Final
Approved Budget under the Development Agreement or the Total Costs of the
Project as included in the budget for the Construction Loan) or incur any cost
not included within a Budget;

 

(xiv)                         enter
into an architect’s agreement with the Architect (or any replacement thereof)
as architect for the Core and Shell or any amendment to such architect’s
agreement or termination thereof, or commence any action or proceeding to
enforce the Company’s rights under the same;

 

(xv)                            solicit
bids from any construction managers or contractors for any portion of the Core
and Shell, or enter into the GMP Contract or any other documentation with a
construction manager or contractor with regard to its retention for the Core
and Shell or any amendment thereto or termination thereof, or commence any
action or proceeding to enforce the Company’s rights under the same;

 

(xvi)                         enter
into the Ground Lease, the LADA, the Condominium Declaration, any other
agreements with Governmental Authorities, or any other material agreement
relating to acquisition of the Property, or any amendment to or termination of
any of the foregoing (including, without limitation, termination of the Ground
Lease pursuant to Section 2.1 thereof and termination of the  LADA pursuant to Section 2.02(a)(iii)
thereof), or commence any action or proceeding to enforce the Company’s rights
under the same;

 

(xvii)                      enter
into any contract or commitment on behalf of the Company, which requires or may
require under any contingency the expenditure by the Company of more than
$500,000 in the aggregate or $250,000 in any calendar year, unless expressly
covered in a Work Authorization or a Budget.

 

If the Board of
Managers shall seek approval by the Members of a proposal regarding any of the
foregoing matters set forth in clauses (i) through (xviii) of this
Section 5.07 (a), each Member shall notify the Board of Managers in
writing within seven (7) Business Days of its receipt of such proposal if it
requires additional information (specifying the required information) with
respect to the proposal.  Within ten
(10) Business Days after receiving all material requested information with
respect to the proposal, or within ten (10) Business Days after receipt of the
request for approval of such proposal (if no additional information has been
timely requested), each Member shall notify the Board of Managers in writing of
its approval or disapproval of the proposal.  If a Member shall fail to disapprove such a proposal within said
ten (10) Business Days, the proposal shall be deemed approved by said
Member.  The provisions of this paragraph
shall be effective only if the applicable notice requesting approval contains the
following language in bold print:

 

36

 

“FAILURE TO DISAPPROVE SUCH PROPOSAL
WITHIN 10 BUSINESS DAYS SHALL BE DEEMED YOUR APPROVAL OF SUCH PROPOSAL.”

 

(b)                                 Without
the prior written approval of NYTC Member, the Board of Managers shall not have
the authority on behalf of the Company to take, and NYTC Member shall have the
sole right on behalf of the Board of Managers and the Company, without the
approval of FC Member, to direct, and to cause its appointed Manager to
implement and consummate, any of the following actions:

 

(i)                                     entering
into any amendment of the Development Agreement or a termination thereof, or
commencing any action or proceeding to enforce the Company’s rights under the
same;

 

(ii)                                  engaging
a replacement Developer and entering into a replacement Development Agreement
with such replacement Developer, subject to the terms of the Recognition
Agreement;

 

(iii)                               making
any decision regarding the design, supply and installation of (including the
hiring of consultants with respect to) the Curtain Wall System;

 

(iv)                              making
any decision or taking any action relating to the construction and design of
the interior portions of the SPU and other interior portions of the NYTC Member
Space if such decision or action does not, except to an immaterial extent,
affect the FC Member Space or the common areas (i.e. such decisions or actions
(A) do not, except to an immaterial extent, involve a change to the floor
plates, core fire stairs, building MEP or vertical transportation systems in
the FC Member Unit, (B) do not, except to an immaterial extent, involve a
change to the floor plates, core fire stairs, building MEP or vertical
transportation systems in the common areas, (C) do not increase the portion of
any item of the Schematic Design Estimate allocated to FC Member unless NYTC
Member shall pay such increased cost, and (D) do not delay the construction
schedule for the Core and Shell or the leasehold improvements in the FC
Member Space);

 

(v)                                 selecting
a replacement architect for the Core and Shell, if necessary, such selection to
be made by NYTC Member after consultation with FC Member;

 

(vi)                              entering
into any lease of space within the NYTC Member Space (subject, however, to any
restrictions on leasing set forth in the Condominium Declaration which shall be
applicable whether or not it has been recorded) or any amendment thereto or
termination thereof, or commencing any action or proceeding to enforce the
Company’s rights under the same;

 

(vii)                           approving
documentation not listed in Section 5.07(a) to the extent such
documentation increases NYTC Member’s liabilities hereunder or decreases its
rights hereunder;

 

37

 

(viii)                        taking
any action on behalf of Owner pursuant to Section 4.4(b) of the
Development Agreement with respect to a Settlement Proposal (as defined
therein); or

 

(ix)                                any
action or decision within the authority of NYTC Member as TMP pursuant to this
Agreement.

 

(c)                                  Without
the prior written approval of FC Member, but subject to Section 3.05
hereof, the Board of Managers shall not have the authority on behalf of the
Company to take, and FC Member shall have the sole right on behalf of the Board
of Managers and the Company without the approval of NYTC Member to direct, and
to cause its appointed Manager to implement and consummate, any of the
following actions:

 

(i)                                     entering
into any lease of space within the FC Member Space (subject, however, to any
restrictions on leasing set forth in the Condominium Declaration which shall be
applicable whether or not it has been recorded) or any amendment thereto or
termination thereof, or commencing any action or proceeding to enforce the
Company’s rights under the same;

 

(ii)                                  making
any decision or taking any action relating to the construction and design of
the interior portions of the Retail Space and other interior portions of the FC
Member Space if such decision or action does not, except to an immaterial
extent, affect the NYTC Member Space or any common areas (i.e. such decisions
or actions (A) do not, except to an immaterial extent involve a change to the
floor plates, core fire stairs, building MEP or vertical transportation systems
in the NYTC Member Unit, (B) do not, except to an immaterial extent involve a
change to the floor plates, core fire stairs, building MEP or vertical
transportation systems in the common areas, (C) do not increase the portion of
any item of the Schematic Design Estimate allocated to NYTC Member unless FC
Member shall pay such increased cost, and (D) do not delay the construction
schedule or Core and Shell or the leasehold improvements in the NYTC
Member Space); or

 

(iii)                               approving
documentation not listed in Section 5.07(a) to the extent such
documentation increases FC Member’s liabilities hereunder or decreases its
rights hereunder.

 

(d)                                 The
Board of Managers shall (i) follow the unanimous written direction of the
Members as to any matter covered by Section 5.07(a), (ii) follow the
written directions of NYTC Member alone as to any matter covered by
Section 5.07(b) (it being understood that the Company shall not engage in
the development of interior portions of the NYTC Member Space), and (iii)
follow the written directions of FC Member alone as to any matter covered by
Section 5.07(c) (it being understood that the Company shall not engage in
the development of the interior portions of the FC Member Space).  Each of NYTC Member and FC Member shall
provide to the other a copy of any written direction given by it pursuant to
the foregoing clauses (ii) and (iii).

 

(e)                                  The
Members shall use reasonable efforts to resolve any disputes which may arise as
to the scope, overall design intent and standards of the proposed Improvements
to

 

38

 

be constructed
pursuant to the Development Plan (excluding, however, the matters referred to
in paragraphs (b) and (c) of this Section 5.07).  With respect to such disputes and, in particular, design issues
which affect the operation of the Improvements as the headquarters of the New
York Times Company (including, without limitation, the MEP systems) and budget
issues related thereto, if either FC Member or NYTC Member believes an impasse
has been reached, the dispute will be referred to Michael Golden on behalf of
NYTC Member and Bruce Ratner on behalf of FC Member to attempt to reach a
mutually agreeable resolution. If either of these individuals believes that a
mutually agreeable resolution cannot be reached, NYTC Member shall determine
the resolution of such dispute (and FC Member shall be bound thereby);
provided, however, that if NYTC Member in its sole discretion elects to resolve
such dispute by changing an item set forth in the Schematic Design Plans, such
change shall not (w) except to an immaterial extent involve a change to the
floor plates, core fire stairs, building MEP or vertical transportation systems
in the FC Member Space, (x) except to an immaterial extent involve a change to
the floor plates, core fire stairs, building MEP or vertical transportation systems
in the common areas, (y) increase the cost of any line item set forth in the
Schematic Design Estimate and allocated to FC Member unless NYTC Member shall
pay such increased costs (except as set forth in paragraph (f) of this
Section 5.07) and (z) except to an immaterial extent, delay the
construction schedule for the Core and Shell or the leasehold improvements
in the FC Member Space.

 

(f)                                    The
Members shall use reasonable efforts to minimize the Total Cost of the Project
consistent, however, with the quality and scope of the Core and Shell as set
forth in the Schematic Design Plans. 
The Members have identified certain portions of the Core and Shell (the
“Selected Building Elements”) as set forth in Exhibit U attached hereto with
regard to which (subject to the limitations set forth herein) it may be
appropriate for upgrades in design scope and specifications, but only if there
are sufficient costs savings actually realized by the Company under the
aggregate cost of the Core and Shell as set forth in the Schematic Design
Estimate which may be applied to the additional costs related to such upgrades
in design and specifications. 
Accordingly, to the extent that there shall be a cost savings actually
realized by the Company (based upon expenditures incurred and contracts
executed) with respect to the Schematic Design Estimate, including, without
limitation, by reason of reductions in the scope of work reflected in the
Schematic Design Estimate heretofore agreed to by the Members, the design scope
and specifications of the Selected Building Elements may be modified (as long
as such changes do not violate clause (w) or (x) of Section 5.07(e)
hereof), provided that as to any one such Selected Building Element the
increased cost shall not exceed the resolution dispute cap amount (i.e., the
“Upset Amount”) set forth therefor in Exhibit U and that as to all such
Selected Building Elements the aggregate cost increases permitted pursuant to
this paragraph (f) shall in no event exceed the aggregate amount of cost savings
actually realized by the Company (based upon contracts executed and
expenditures incurred) under the Schematic Design Estimate.  It is understood that if there shall be a
reasonably anticipated cost savings with respect to the Schematic Design
Estimate, then the Company shall obtain bids as to proposed modifications to
design scope and specifications of the Selected Building Elements as
alternates, which bids may then be selected by NYTC Member if costs savings,
taking into account all associated costs to the Company, are actually realized
such that any said modifications are permitted hereunder, provided that NYTC
Member may not select such alternate bids if such work shall cause a delay in
the scheduled Completion Date.  All
disputes relating to upgrades in the design scope and specifications of the
Selected Building Elements shall be resolved as set forth in
Section 5.07(e)

 

39

 

of this Agreement,
except that clause (y) thereof shall apply only to the extent that such
increased costs exceed the lesser of the resolution dispute cap amount set
forth in Exhibit U as to any Selected Building Element or in the aggregate the
cost savings actually realized by the Company and not theretofore applied to
other Selected Building Elements.  It is
understood that costs incurred by the Company as a result of modifications made
at the election of NYTC Member shall, to the extent the same do not exceed the
resolution dispute cap amount set forth therefor in Exhibit U, be shared by the
Members in accordance with their Percentage Interests (as adjusted based on the
Allocation Methodology, if applicable). 
Costs incurred by the Company as a result of modifications made at the
election of NYTC Member in excess of the resolution dispute cap amount set
forth therefor in Exhibit U or to the extent not funded by realized cost
savings pursuant to this Section 5.07(f) shall be borne solely by NYTC
Member.

 

5.08                           Development Plan; Improvements; Use and Leasing;
Construction Guarantees.

 

(a)                                  The
Members intend that the Property will be developed pursuant to the Development
Plan.  It is understood that the Company
shall construct only the Core and Shell, with all further work and improvements
in the NYTC Member Space to be the sole responsibility and expense of NYTC
Member and all further work and improvements in the FC Member Space to be the
sole responsibility and expense of FC Member.

 

(b)                                 FC
Member shall be solely responsible for the improvement, use and leasing of the
FC Member Space and all costs and liabilities incurred by the Company in
connection therewith.  NYTC Member shall
be solely responsible for the improvement and use of the NYTC Member Space and
all costs and liabilities incurred by the Company in connection therewith subject
to Section 3.01(d). 
Notwithstanding the foregoing, all matters relating to improvements,
alterations and changes to, and the use or leasing of the FC Member Space and
the NYTC Member Space which relate to the period after the Completion Date
shall be governed by the Condominium Declaration, whether or not the same shall
have then been recorded.

 

(c)                                  The
Members shall, during the process of designing the Improvements, determine an
appropriate division of the below-grade space within the Improvements and shall
include the portion of such space allocated to NYTC Member within the NYTC
Member Space and shall include the portion of such space allocated to FC Member
within the FC Member Space, provided however, that NYTC Member shall have the
first right to select the location of the below-grade space to be allocated to
it.  In addition, the Discretionary
Inside Mechanical Space shall be allocated to the NYTC Member Space and the FC
Member Space in accordance with the Land Share of each Member.  To the extent possible, all systems, areas
and equipment solely serving either the NYTC Member Space or the FC Member
Space shall be included within the applicable NYTC Member Space or FC Member
Space (as the case may be).

 

(d)                                 FC
Member shall cause FCE (or ING Vastgoed if FC Entity shall have transferred all
of its interest in FC Member as may be permitted under the Recognition
Agreement), and NYTC Member shall cause the New York Times Company to provide,
the construction completion guaranties required pursuant to Section 6.3(b)(iv)
of the Ground Lease as and when same are so required.

 

40

 

5.09                           Financing.

 

(a)                                  FC
Member shall seek the maximum available Construction Loan for the Total Costs
of the Project (which, at the election of NYTC Member or if otherwise required
hereunder, shall include NYTC Interiors Costs) and shall cause FCE (or ING
Vastgoed if FC Entity shall have transferred all of its interest in FC Member
as may be permitted under the Recognition Agreement) to provide to the lender
or lenders under the Construction Loan a construction completion guarantee
covering the Core and Shell (but subject to the funding of the Construction
Loan) in substantially the form attached hereto as Exhibit M or such other form
as may be required by the lender under the Construction Loan, and NYTC Member
shall cause The New York Times Company to provide to such lender or lenders a
guaranty of the portion of the Construction Loan equal to the NYTC Guaranteed
Amount (subject to adjustment as set forth in Section 5.09(b)).  FC Member shall provide all other credit
enhancement required by the construction lender, except that if the long-term
debt rating of The New York Times Company shall fall to “BBB+” as rated by
Standard &  Poor’s (or an equivalent
rating agency), or less, NYTC Member shall provide the necessary credit
enhancement required by the construction lender in order to obtain from the
lender construction financing for the same portion of NYTC Member’s Share of
the Total Costs of the Project as would have been obtainable in the event The
New York Times Company had maintained a long-term debt rating of “A-” (by
Standard & Poor’s or the equivalent rating from an equivalent rating
agency).  Notwithstanding the foregoing
guarantees, each Member shall be responsible for repayment of (and debt service
for) its Share of the Construction Loan. 
Each disbursement of the Construction Loan will be treated on a line
item basis and allocated in proportion to the Members’ Percentage Interests or
as otherwise provided in the Project Budget or determined pursuant to the
Allocation Methodology.

 

(b)                                 If
NYTC Member’s Share of the Total Costs of the Project is less on a per square
foot basis than FC Member’s Share of the Total Costs of the Project on a per
square foot basis, then the NYTC Guaranteed Amount shall be increased by the
amount (not to exceed the NYTC Interiors Cost) necessary to equalize on a per
square foot basis NYTC Member’s Share of the Total Costs of the Project and FC
Member’s Share of the Total Costs of the Project.  It is understood that NYTC Member may waive the portion of the
Construction Loan corresponding to the NYTC Interiors Costs if The New York
Times Company provides to the construction lender a guarantee of completion of
the work represented by the NYTC Interiors Costs.  At the time of delivery of such waiver and completion guaranty,
the partial payment guaranty of the New York Times Company shall be reduced on
a dollar for dollar basis for each dollar of NYTC Interiors Costs theretofore
included in the NYTC Guaranteed Amount.

 

(c)                                  The
terms of the Construction Loan shall be acceptable to both Members, shall
expressly permit the NYTC Extension Loan described in Section 6.03 hereof
and shall be prepayable without premium or penalty at all times during the
Extension Period.

 

5.10                           Building Name; Signage; Rooftop Antennae.

 

(a)                                  The
building shall be known as “The New York Times Building” at all times during
the period on or prior to the Completion Date. 
For the period after the Completion Date, the building shall be known as
“The New York Times Building” subject to the terms and conditions of the
Condominium Declaration, whether or not it has been recorded.

 

41

 

(b)                                 All
matters relating to Temporary Signage shall be governed by the mutual approval
of the Members and shall be subject to the terms of the Ground Lease (including
without limitation DUO).

 

(c)                                  All
matters relating to Signage shall be subject to the terms of the Ground Lease
(including without limitation DUO) and, subject to the following exceptions,
shall be governed by the mutual approval of the Members:

 

(i)                                     Signage,
the content of which relates solely to The New York Times Company and/or its
Affiliates, may be placed on the roof of the Improvements and on the uppermost
portion of the façade of the Improvements by NYTC Member not less than fifteen
(15) feet above the uppermost tenantable windows therein (collectively, “NYTC
Signage”), in form, size and shape selected by NYTC in its sole
discretion.  The cost of erection and
maintenance of such NYTC Signage, including any incremental costs of the Core
and Shell which are incurred by reason of any such NYTC Signage, shall be borne
solely by NYTC Member; provided, however, that in no event shall NYTC Member
pay any usage or licensing cost, charge or fee to FC Member or the Company to
erect or maintain such NYTC Signage.  In
no event shall said NYTC Signage be placed in a manner or location which will
interfere with the efficient operation and use of the Improvements or any
rooftop gardens in the reasonable judgment of NYTC Member, nor shall any such
NYTC Signage interfere with the view from or the sunlight to any window in the
FC Member Space except to an immaterial extent.  Additionally, to the extent such NYTC Signage is illuminated, the
same shall not be placed in a manner or location which illuminates the interior
of the FC Member Space except to an immaterial extent.  All interior Signage within the NYTC Member
Space (excluding the SPU) shall not be visible from the exterior of the
Improvements.

 

(ii)                                  Signage,
the content of which pertains solely to FC Member’s office anchor tenant(s)
(and in no event shall such signs identify more than three (3) such office
anchor tenants), may be placed on the facade flanking the entrances to the
Improvements in locations and dimensions to be agreed upon by the Members in
consultation with the Architect (“FC Office Signage”), in form and shape
selected by such FC Member in its sole discretion, provided however, that the
design of such FC Office Signage shall be commensurate with the stature and
design intent of the Improvements, and that such FC Office Signage shall be
less prominent than the NYTC Office Signage relating to NYTC and/or its Affiliates
described under Section 5.10(c)(iii) hereof.  The cost of erection and maintenance of such FC Office Signage,
including any incremental costs of the Core and Shell which are incurred by
reason of any such FC Office Signage, shall be borne solely by FC Member;
provided, however, that in no event shall FC Member pay any usage or licensing
cost, charge or fee to NYTC Member or the Company to erect or maintain such FC
Office Signage.  In no event shall such
FC Office Signage be placed in a manner or location which will interfere with
the efficient operation and use of the Improvements or with the view from or
the sunlight to any window in the NYTC Member Space except to an immaterial
extent.  Additionally, to the extent
such FC Office Signage is illuminated, the same shall not be placed in a manner
which illuminates the interior of the NYTC Member Space except to an immaterial
extent.  All interior Signage within the
FC Member Space (excluding the Retail Space) shall not be visible from the
exterior of the Improvements.

 

42

 

(iii)                               In
addition to, and without limiting NYTC Member’s rights under
Section 5.10(c)(i) with respect to NYTC Signage, Signage, the content of
which pertains solely to NYTC Member’s office tenants or occupants (and in no
event shall such signs identify more than three (3) such office tenants or
occupants which are not affiliates of The New York Times Company), may be
placed on the canopy (or canopies, as the case may be) of the Improvements and
on the facade over and/or flanking the entrances to the Improvements in
locations and dimensions to be agreed upon by the Members in consultation with
the Architect (“NYTC Office Signage”), in form and shape selected by such NYTC
Member in its sole discretion, provided however, that the design of such NYTC
Office Signage shall be commensurate with the stature and design intent of the
Improvements, and that in the case of NYTC Office Signage relating to NYTC
and/or its Affiliates, the same shall be more prominent than the FC Office
Signage described under Section 5.10(c)(ii) hereof.  The cost of erection and maintenance of such
NYTC Office Signage, including any incremental costs of the Core and Shell which
are incurred by reason of any such NYTC Office Signage, shall be borne solely
by NYTC Member; provided, however, that in no event shall NYTC Member pay any
usage or licensing cost, charge or fee to FC Member or the Company to erect or
maintain such NYTC Office Signage.  In
no event shall such NYTC Office Signage be placed in a manner or location which
will interfere with the efficient operation and use of the Improvements or with
the view from or the sunlight to any window in the FC Member Space except to an
immaterial extent.  Additionally, to the
extent such NYTC Office Signage is illuminated, the same shall not be placed in
a manner which illuminates the interior of the FC Member Space except to an
immaterial extent.  All interior Signage
within the NYTC Member Space (excluding the SPU Space) shall not be visible
from the exterior of the Improvements.

 

(iv)                              Signage,
which is unrelated to any office tenant of the FC Member Space, which is not
being leased or licensed to a user listed in item (1) of Exhibit N and the
content of which does not relate to any of the prohibited uses listed items (2)
– (18) of Exhibit N, may be placed on the facade of the Improvements above the
windows of the Retail Space and below the lowermost windows of the NYTC Member
Space in locations and dimensions to be agreed upon by the Members (“Retail
Signage”) and in form and shape selected by FC Member in its sole discretion,
provided however, that the design of such Retail Signage shall be commensurate
with the stature and design intent of the Improvements.  The cost of erection and maintenance of such
Retail Signage, including any incremental costs of the Core and Shell which are
incurred by reason of any such Retail Signage, shall be borne solely by FC
Member; provided, however, that in no event shall FC Member pay any usage or
licensing cost, charge or fee to NYTC Member or the Company to erect or
maintain such Retail Signage.  In no
event shall such Retail Signage be placed in a manner or location which will
interfere with the efficient operation and use of the Improvements or with the
view from or the sunlight to any window in the NYTC Member Space except to an
immaterial extent.  Additionally, to the
extent such Retail Signage is illuminated, the same shall not be placed in a
manner which illuminates the interior of the NYTC Member Space except to an
immaterial extent.  All revenue derived
from the Retail Signage shall belong to FC Member.

 

(v)                                 Signage,
the content of which pertains solely to the SPU, may be placed on the facade of
the Improvements below the lowermost windows of the NYTC Member Space in
locations and dimensions to be agreed upon by the Members (“SPU Signage”) and
in form and shape selected by NYTC Member in its sole discretion and at its
sole cost, provided

 

43

 

however, that the
design of such SPU Signage shall be commensurate with the stature and design
intent of the Improvements.  The cost of
erection and maintenance of such SPU Signage, including any incremental costs of
the Core and Shell which are incurred by reason of any such SPU Signage,  shall be borne solely by NYTC Member;
provided, however, that in no event shall NYTC Member pay any usage or
licensing cost, charge or fee to FC Member or the Company to erect or maintain
such SPU Signage.  In no event shall
such SPU Signage be placed in a manner or location which will interfere with
the efficient operation and use of the Improvements or with the view from or
the sunlight to any window in the FC Member Space except to an immaterial
extent.  Additionally, to the extent
such SPU Signage is illuminated, the same shall not be placed in a manner which
illuminates the interior of the FC Member Space except to an immaterial extent.

 

(vi)                              Commercial
Signage may be placed on the Property if required by DUO or as agreed upon by
the Members.  The form, size, shape,
content and location of any Commercial Signage shall be determined by the
Members, provided however, that, except to the extent that the form, size,
shape, content or location of such Commercial Signage is governed by DUO or
could result in a default under the Ground Lease or any of the Unit Leases,
NYTC Member shall have the first right to require that the Commercial Signage
or any portion thereof be used in a manner relating to The New York Times Company
or another news-related purpose, but that otherwise the Members shall endeavor
to obtain the maximum revenue to be derived therefrom, consistent with the
stature and design intent of the Improvements and the DUO.  The cost of fabrication, erection and maintenance
of all Commercial Signage shall be shared by the Members in proportion to their
respective Percentage Interests.

 

(vii)                           Each
of the NYTC Member (with respect to NYTC Signage, NYTC Office Signage and SPU
Signage) and FC Member (with respect to FC Office Signage and Retail Signage)
shall be solely responsible for any obligations under the Ground Lease and its
respective Unit Lease with respect to such Signage, and shall cause such NYTC
Signage, NYTC Office Signage and SPU Signage or FC Office Signage and Retail
Signage, as the case may be, to comply with all applicable laws, the Ground
Lease, DUO and its respective Unit Lease.

 

(viii)                        NYTC
shall be entitled, at its sole election, to convert the use of any NYTC Signage
or portion thereof to Commercial Signage by delivering written notice of such
intention to FC Member together with a statement showing in reasonable detail
the then unamortized portion of the costs (determined in accordance with GAAP),
if any, of the fabrication and erection of such Signage (including incremental
costs of the Core and Shell incurred by NYTC Member with respect thereto and an
interest factor of LIBOR plus one percent per annum with respect to such costs,
measured from the date such costs were expended by NYTC Member) (collectively,
“NYTC’s Unamortized Signage Costs”).  
FC Member shall have the option exercisable by written notice to NYTC
Member within sixty (60) days after FC Member’s receipt of such notice and
statement from NYTC Member, to elect to participate thereafter in the use of
and share in the revenue generated by and ongoing operating and maintenance and
replacement costs of such Signage, and if such election is made by FC Member,
then FC Member shall to pay to NYTC Member an amount equal to FC Member’s
Percentage Interest of NYTC’s Unamortized Signage Costs relating to such
Signage.   Once any

 

44

 

NYTC Signage has
been converted to Commercial Signage, NYTC Member may not thereafter convert
such Commercial Signage back to NYTC Signage.

 

(ix)  The Members shall develop a Signage plan for
the interior portions of the Improvements outside of the FC Member Space and
the NYTC Member Space (including the ground floor building lobby and any
interior portion of the Improvements below the lowermost windows of the NYTC
Member Space).

 

(d)                                                                                 Notwithstanding
anything to the contrary contained herein, during the period after the
Completion Date, all matters relating to Signage and communications equipment
affixed or to be affixed to the exterior of the Improvements (including,
without limitation, the roof thereof) (whether or not first affixed prior to
the Completion Date) shall be governed pursuant to the Condominium Declaration,
whether or not the same shall have then been recorded, and Sections 3, 4 and 5
of Article IX of the Condominium Declaration are hereby deemed
incorporated herein by reference.

 

(e)                                  NYTC
Member shall have the exclusive right to decide the location of all
communications equipment owned or operated by others on the roof or elsewhere,
only in order to prevent interference with the functionality of its own
communications equipment, including the right to require existing
communications equipment to be relocated at the sole cost and expense of NYTC
Member, if necessary in the sole discretion of NYTC Member.  At all times, (i) NYTC Member shall have the
exclusive right to utilize an area under the roof of the Improvements
designated as the “NYTC control room”, and (ii) FC Member shall have the
exclusive right to utilize the area under the roof of the Improvements
designated as the “FC control room”, in order to operate their respective
communications equipment, said areas to be part of the NYTC Member Space and
the FC Member Space, respectively, and designated mutually by the Members.   Subject to NYTC Member’s right to decide
the location of all communications equipment in order to prevent interference
with the functionality of its own communications equipment, the Members shall
be entitled to use, in proportion to their Percentage Interests, such areas of
the roof as are designated for communications equipment by the Members.  In no event shall said communications
equipment be placed in a manner or location which will interfere with the
efficient operation and use of the Improvements or any rooftop gardens in the
reasonable judgment of NYTC Member.

 

5.11                           Entry and Use.  Prior to the Completion Date, to the extent
permitted under Section 3.3(e) of the Development Agreement, NYTC Member
shall have the right to enter the NYTC Member Space, to inspect the same and to
perform work therein, and FC Member shall have the right to enter the FC Member
Space, to inspect the same to perform work therein.  After the Completion Date, each Member may improve, use, alter,
lease and occupy its respective Space in the manner and at the times provided
under the Condominium Declaration; Articles IX, X, XI, XX and XXII of the
Condominium Declaration, whether or not the same shall have been recorded,
being hereby incorporated by reference.  Each Member shall be solely responsible for any such entry,
inspection and performance of work on its behalf pursuant to this
Section 5.11 and shall indemnify and hold the Company and the other Member
harmless from and against any and all liabilities, damages, costs and expenses
incurred by the Company or said other Member in connection therewith.

 

45

 

5.12                           Adjustment to NYTC Member Space and FC Member Space.  NYTC Member may elect, on a one-time basis,
by written notice (“Section 5.12 Notice”) given to FC Member at any time
on or before the first anniversary of the date hereof, to purchase or lease
additional space (other than space within the NYTC Member Space or the Retail
Space) constituting a full floor or floors of the Improvements, which
additional space shall be contiguous to the NYTC Member Space but in no event
shall the above and below grade floor area contained in the NYTC Member Space
exceed 900,000 gross square feet.  The
Section 5.12 Notice shall be effective only if sets forth the specific
space to be purchased or leased and is accompanied by:

 

(a) in the case of a purchase, a Capital Contribution to the Company in
an amount equal to FC Member’s Costs; or

 

(b) in the case of a lease, (i) a security deposit in an amount equal
to one year’s rent for such space or, so long as The New York Times Company
shall have a rating of at least A- as determined by the Rating Agency, a
guaranty of the obligations of NYTC Member under the lease (which guaranty shall
be in substantially the form attached hereto as Exhibit O) in lieu of a
security deposit, and (ii) an executed counterpart of said lease.

 

If NYTC Member shall elect to purchase such additional space, the
Percentage Interests of the Members (for purposes of Land Share, Share of the
Total Costs of the Project and NYTC Member’s Share of the Construction Loan)
shall be adjusted to reflect the addition of such space to the NYTC Member
Space and the removal of such space from FC Member Space and an amendment to
this Agreement shall be executed simultaneously with the making of the
additional Capital Contribution pursuant to this Section 5.12 reflecting
such adjustments, but the failure of the parties to execute such an amendment
shall not affect the provisions of this Section 5.12.  NYTC Member shall pay any transfer tax
payable in connection with such purchase. 
If NYTC Member shall elect to lease such space, the lease shall be in
substantially the form attached hereto as Exhibit P providing for (x) a term of
ten (10) years, with three (3) options of ten (10) years each for a total of
not more than forty (40) years, commencing upon substantial completion of the
Core and Shell for such space), (y) an annual rental equal to 10% of FC
Member’s Costs for the first ten (10) years of the term, and (z) 95% of the
then Fair Market Rent (determined in accordance with Section 10.02 hereof)
beginning on the tenth anniversary of the commencement of the lease (if
applicable) and adjustments in the annual rental on each of the twentieth (20th)
and thirtieth (30th) anniversaries of the commencement date (as
applicable) to reflect 95% of the then Fair Market Rent determined in
accordance with Section 10.02 hereof.

 

5.13                           Activities of Members; Dedicated Individuals of FC
Member.

 

(a)                                  The
Board of Managers shall not be required to devote its full time and effort to
the affairs of the Company, but shall devote such time and effort as may
reasonably be required to adequately promote the Company’s interests.

 

(b)                                 Any
Member and its Affiliates may at any time engage in and possess interests in
other business ventures of any and every nature and description, independently
or with others, including, but not limited to, engaging in activities which
parallel or compete with the business of the Company, and neither the Company
nor any other Member shall by virtue of

 

46

 

this Agreement
have any right, title or interest in or to such independent activities or to
the income or profits derived therefrom.

 

(c)                                  The
Members hereby agree to meet regularly at the offices of The New York Times
Company or elsewhere as agreed by the Members, in furtherance of the interests
of the Company and in order to promote prompt decision-making and dispute
resolution on behalf of the Company as may be required hereunder and under the
Development Agreement.

 

(d)                                 Reference
is hereby made to Section 2.5 of the Development Agreement, which
Section 2.5 is hereby incorporated by reference, wherein Developer
covenants to devote certain Persons to the effectuation of the Development Plan
(and a specific percentage of their available working time).  FC Member, in its capacity as a Member
hereunder, shall cause Developer to comply with said covenant.

 

5.14                           Unauthorized Acts.  No Member shall take any action on behalf of
or in the name of the Company, or enter into any commitment or obligation
binding upon the Company, except as expressly provided for in this
Agreement.  Each Member shall indemnify
and hold harmless the other Members, their Affiliates, and the members,
partners, directors, officers, shareholders, employees, agents and
representative of such other Members and their Affiliates against any loss,
liability, damage or expense arising out of any breach of this Section 5.14
by such Member or its Affiliates or the members, partners, directors, officers,
shareholders, employees, agents and representative of such other Members and
their Affiliates.

 

5.15                           Subleases and Brokerage Agreements for FC Member
Space; Non-Disturbance by NYTC Member for FC Member
Tenants.  (a)  In connection with the remedies of NYTC
Member under Section 3.04, NYTC Member will provide, upon request by FC
Member from time to time, non-disturbance agreements for each subtenant of the
FC Member Space which executes a sublease meeting the following criteria:

 

(i)                                     in
the case of office subtenants, covers at least the greater of 15,000 rentable
square feet of space or one-half of the subject floor in the Improvements;

 

(ii)                                  in
the case of retail subtenants, covers at least 5,000 rentable square feet of
space;

 

(iii)                               has a sublease term of
at least 5 years (which term does not conflict with NYTC Member expansion
options to acquire or sublease additional space in the FC Member Space); and

 

(iv)                              is
on commercially reasonable economic terms (on and after the Construction Loan
Closing Date, any sublease as to which the construction lender has agreed to
provide a non-disturbance agreement shall be deemed to be on commercially
reasonable economic terms).

 

(b)                                 NYTC
Member shall not be obligated to fund any initial leasing costs (including
tenant improvements or takeover costs); however, the sublease may permit the

 

47

 

subtenant
thereunder to net out the amount of any work allowance granted under the
sublease and not funded by NYTC Member following attornment under the
non-disturbance agreement, which unfunded amount shall be amortized over the
term of the sublease.

 

(c)                                  In
no event shall NYTC Member be liable for any obligations of FC Member to any
subtenants other than pursuant to non-disturbance agreements entered into under
this Section 5.15.  Each sublease
entered into by FC Member shall provide that, subject to any non-disturbance
agreement which NYTC Member has entered into pursuant to this
Section 5.15, if NYTC Member exercises its rights under
Section 3.04(b) or in the event of a termination of FC Member’s Unit
Lease, at the election of NYTC Member, to be exercised by notice given by NYTC
Member to such subtenant stating that NYTC Member has elected to terminate such
sublease, the sublease shall immediately upon the giving of such notice
terminate and be of no further force or effect without condition or payment by
FC Member and that NYTC Member shall have no liability under such
sublease.  Each such sublease shall
further provide that in any action brought against NYTC Member in connection
with the termination of the sublease pursuant to this Section 5.15(c), the
losing party shall pay the fees and disbursements incurred by the prevailing
party in connection with such action. 
Any brokerage agreements entered into by FC Member with respect to any
sublease shall also provide that NYTC Member shall have no liability under such
brokerage agreement and that in any action brought against NYTC Member
regarding fees payable under such brokerage agreement, the losing party shall
pay the fees and disbursements incurred by the prevailing party in connection
with such action.

 

(d)                                 Any
sublease entered into by FC Member prior to the date FC Member’s option
pursuant to Section 3.07 expires or is otherwise waived as against NYTC
Member in writing by FC Member, and any non-disturbance agreement entered into
pursuant to this Section 5.15 with respect to any such sublease, shall
provide that such sublease shall automatically terminate and be of no further
force or effect without condition or payment by FC Member and that NYTC Member
shall have no further liability under such sublease in the event FC Member
shall exercise its option to withdraw from or convey its interest in the
Company pursuant to Section 3.07 of this Agreement.  Any non-disturbance agreement entered into
prior to the Possession Date and, if the Third Non-Delivery Event (as defined
in the Ground Lease) occurs, any non-disturbance agreement entered into on or
after the Possession Date, shall also provide that such non-disturbance
agreement and the sublease to which it relates may be terminated by NYTC Member
(without payment by or other liability to NYTC Member) at NYTC Member’s
election, which termination may be exercised by notice given by NYTC Member to
such subtenant stating that NYTC Member has elected to terminate such
non-disturbance agreement and sublease in the event FC Member is no longer a
member of the Company at anytime after the occurrence of the Third Non-Delivery
Event, and upon the giving of such notice, such sublease and non-disturbance
agreement shall ipso facto terminate.

 

(e)                                  Within
ten (10) days after the execution by a Member of any sublease or brokerage
agreement relating to the sublease, such Member shall deliver to the other
Member an executed copy of such sublease or brokerage agreement, as the case
may be, and any other documents relating thereto.

 

5.16                           Terrorism Insurance Extension.  If FC
Member believes that the Company is entitled to an extension of the Fixed
Construction Commencement Date pursuant to Section

 

48

 

6.1(c)(vi) of the Ground Lease (the “Insurance Extension”) and that the
Company should obtain the Insurance Extension, it shall so notify NYTC Member
at least 60 days prior to the Fixed Construction Commencement Date.  Said notice shall set forth the grounds for
such entitlement and, if one of such grounds is either (x) that the terrorism
insurance referenced in Section 6.1(c)(vi) of the Ground Lease (the
“Insurance”) cannot be obtained from an insurance company which would be
acceptable to the proposed lender under the Construction Loan or (y) that the
Insurance cannot be obtained for a commercially reasonable cost, such notice
shall set forth the cost thereof which FC Member believes would be commercially
reasonable for such Insurance (the “FC Base Cost”).  The Company thereafter shall proceed to seek the Insurance
Extension unless, within 30 days after receipt of said notice, NYTC Member
shall advise FC Member that NYTC Member has either (i) obtained such Insurance
from an insurance company acceptable to the proposed lender under the
Construction Loan or (ii) obtained a waiver from the lender under the
Construction Loan of the requirement to obtain the Insurance.  In the event NYTC Member shall deliver such
a notice, it shall pay the portion of any premium or other cost associated with
obtaining such Insurance or waiver that is in excess of the FC Base Cost (NYTC
Member and FC Member each being responsible for its pro rata share of such
premium or other cost up to the FC Base Cost). 
If, however, after obtaining the Insurance or waiver, NYTC Member believes
that the FC Base Cost is less than the commercially reasonable cost for the
Insurance, NYTC Member may submit to arbitration pursuant to Section 11.01
hereof the determination of the commercially reasonable cost for such Insurance
for a premium high rise office building development project in the Borough of
Manhattan (the “True Base Amount”).  If
such arbitration shall determine that the True Base Amount  exceeds the FC Base Amount, FC Member shall
within ten (10) Business Days after receiving such determination reimburse NYTC
Member for FC Member’s Percentage Interest in the amount by which the True Base
Amount exceeds the FC Base Amount, together with interest thereon at the
Default Rate accruing from the date on which NYTC Member paid such excess
amount to the date of payment by FC Member of its Percentage Interest thereof.

 

5.17                           Subway Agreement.  It is acknowledged that pursuant to
Paragraph Third (A) of Tenant’s Subway Agreement, the Company shall have
certain liquidated damages if it shall obtain a temporary certificate of
occupancy for the actual occupancy of any office space in the Improvements
(expressly excluding any zero occupancy certificate or any permits or
certificates necessary for interior build-out) for any portion of the
Improvements prior to substantial completion of certain work under Tenant’s
Subway Agreement or obtain a final permanent certificate of occupancy for the
Improvements prior to final completion of certain work under Tenant’s Subway
Agreement.  If either Member shall obtain
a temporary or permanent certificate of occupancy in violation of Tenant’s
Subway Agreement, the liquidated damages payable thereunder shall be allocated
to the Members in accordance with their respective Percentage Interests.

 

ARTICLE VI

CONVERSION
DATE; NYTC EXTENSION LOAN

 

49

 

6.01                           Conversion Date.  The Conversion Date shall mean the earliest
day occurring after the Completion Date as the Company is permitted under the
Construction Loan and under the Ground Lease, the Unit Leases and the Condominium
Act to take the actions set forth in Section 6.02.

 

6.02                           Conversion Date Actions.  Upon the Conversion Date, the Company and
each Member, as applicable, shall take each of the following actions in the
order and priority herein set forth:

 

(i)                                     the
Company shall subject the leasehold interest under the Ground Lease to a
condominium regime pursuant to the Condominium Declaration by executing the
same and causing it to be recorded in the appropriate recording office, and the
Company and the Members shall amend each of the Unit Leases to reflect the
interests demised thereunder as then described by the Condominium Declaration;

 

(ii)                                  the
Company shall assign its interest under the Ground Lease to the Public Parties
(and the landlord’s interest and tenant’s interest under the Ground Lease will
not merge in such instance, but will continue as between the Public Parties, as
landlord, and the Public Parties, as tenant) and cause the satisfaction of all
of the requirements of Article XXXII of the Ground Lease;

 

(iii)                               unless such Capital
Contributions have been made previously, the Members shall make the Capital
Contributions required thereof pursuant to Section 3.01(h) and the Company
shall apply the same as set forth in Section 3.01(h), all subject to provisions
of said Section 3.01(h);

 

(iv)                              unless
theretofore paid by FC Member, FC Member shall make the Capital Contribution
required of it under Section 3.01(c) and the Company shall apply the same
as set forth therein;

 

(v)                                 the
NYTC Member shall release the pledge and assignment agreement and terminate the
UCC-1 delivered by FC Member pursuant to Section 3.04(c) hereof;

 

(vi)                              the
Members shall approve the First Budget (as defined in the Condominium
Declaration), shall appoint the initial managers of the condominium as provided
in the Condominium Declaration and shall cause the

 

50

 

condominium association to be incorporated as contemplated therein; and

 

(vii)                           the Company shall be
dissolved as provided in Article IX.

 

In the event the
Conversion Date is extended beyond the Completion Date, any payments and
damages payable by the Company pursuant to the Ground Lease shall be allocated
to the Members in the same proportions as would have applied if the Lease
Assignment Date (as defined in the Ground Lease) had occurred on the Conversion
Date and the Condominium Declaration had become effective notwithstanding that
the same shall not then have been recorded.

 

6.03                           NYTC Extension Loan.  FC Member shall use commercially reasonable
efforts to obtain permanent financing for FC Member’s Share of the Construction
Loan on a non-recourse basis (other than customary carve-outs to non-recourse
provisions then generally being required by institutional permanent mortgage
lenders) (the “FC Member Unit Permanent Financing”).  In the event that despite the use of FC Member’s commercially
reasonable efforts, FC Member is unable to obtain the FC Member Unit Permanent
Financing, FC Member shall notify NYTC Member no later than twenty (20) days
prior to the date on which FC Member is obligated to make a Capital
Contribution pursuant to Section 3.01(h) (the “Section 3.01(h)
Capital Contribution”).  In such event,
in lieu of FC Member being required to make the Section 3.01(h) Capital
Contribution and provided the events described in clauses (i) and (ii) of
Section 6.02 hereof have occurred, NYTC Member shall undertake to make
arrangements through third parties or shall otherwise arrange to repay to the
construction lender the Excess NYTC Guaranteed Amount together with NYTC
Member’s Share of the Construction Loan in exchange for a release of both the
lien of the Construction Loan from all NYTC Individual Units and the SPU Unit
(as each is defined in the Condominium Declaration) and any payment guaranty
given by NYTC Member or its Affiliates to secure the Construction Loan (which
payment, to the extent in excess of the NYTC Share of the Construction Loan,
shall constitute the “NYTC Extension Loan”). 
If NYTC Member makes the NYTC Extension Loan, (a) if acceptable to the
lender under the Construction Loan, there shall be delivered to NYTC Member and
NYTC Member shall accept, an assignment (said assignment and the documents
effecting the same to be in forms customarily utilized in connection with the
assignment of mortgage loans held by institutional lenders and reasonably
acceptable to NYTC Member) of such portion of the Construction Loan which
corresponds to the NYTC Extension Loan so as to minimize the applicable
mortgage recording taxes otherwise payable by FC Member pursuant to this
Section 6.03, and (b) FC Member shall have a period of up to five (5)
years (the “Extension Period”) from the Completion Date to obtain the FC Member
Unit Permanent Financing in an amount equal to the sum of (i) FC Member’s Share
of the then outstanding Construction Loan plus (ii) the Excess NYTC Guaranteed
Amount.  The right of FC Member to
extend payment of the Section 3.01(h) Capital Contribution for the
Extension Period and not be in default under this Agreement for failure to pay
the same, and the obligation of NYTC Member to undertake to make arrangements
through third parties or otherwise arrange for the NYTC Extension Loan, shall
be subject to the following conditions:

 

(i)                                     The
NYTC Extension Loan shall bear interest at a rate of one percent (1%) per annum
in excess of the then

 

51

 

applicable interest rate on the Construction Loan or Bridge Financing,
said payments to be made in arrears on the first day of each calendar month,
and shall mature on the earlier of (X) the expiration of the Extension Period,
or (Y) the maturity or acceleration of the Construction Loan (unless Bridge
Financing is obtained) or the Bridge Financing;

 

(ii)                                  The
NYTC Extension Loan will be secured by those certain second mortgage lien
documents in substantially the forms attached hereto as Exhibit Q-1 encumbering
the condominium unit or units constituting the FC Member Space, as well as
those second mortgage lien documents described in Exhibit Q-2 (which shall be
in forms customary for mortgage loans by institutional lenders and reasonably
acceptable to NYTC Member) and any other documents customary in connection with
the severance of mortgage loans held by institutional lenders, and shall be subordinated
to the mortgage for the Construction Loan or Bridge Financing pursuant to a
subordination and intercreditor agreement (in substantially the form attached
hereto as Exhibit R), or secured by other means acceptable to NYTC Member in
its sole and absolute discretion;

 

(iii)                               The Construction Loan or
Bridge Financing shall be prepayable without premium or penalty at all times
during the Extension Period;

 

(iv)                              The
construction or Bridge Financing lender, as the case may be, shall agree in
writing with NYTC Member to provide NYTC Member with copies of all notices of
default given to FC Member and shall further agree that NYTC Member shall have
the right to cure FC Member defaults and/or to obtain an assignment to NYTC
Member or its designee of the mortgage lien and all other documents signed in
connection with the Construction Loan or Bridge Financing, as the case may be,
at any time during the Extension Period that said Construction Loan or Bridge
Financing is in default for an amount equal to the unpaid principal balance
thereof and accrued interest thereon;

 

(v)                                 If
and to the extent FCE (or other guarantor as set forth in clause (vii) below)
has provided the Construction Loan lender or Bridge Financing lender a
completion guaranty with respect to any then incomplete items of tenant or
leasehold improvement work to be performed by FC Member, FCE (or other
guarantor as set forth in clause (vii) below) shall provide NYTC a comparable
completion

 

52

 

guaranty with respect to such incomplete tenant and leasehold
improvement work;

 

(vi)                              The
NYTC Extension Loan will be insured by a loan policy issued, at FC Member’s
expense, by Chicago Title Insurance Company or another national title insurance
company qualified to do business in New York State and satisfactory to NYTC
Member exercising its reasonable discretion, insuring that the lien of the NYTC
Extension Loan is a second priority lien on the FC Member Unit subordinate only
to the first lien of the Construction Loan or Bridge Financing, real estate
taxes on the FC Member Unit and the Condominium Declaration;

 

(vii)                           FC Member shall cause either FCE or another
guarantor acceptable to NYTC Member in its sole and absolute discretion to
provide a guaranty in substantially the form attached hereto as Exhibit S (the
“Bad Acts Guaranty”) pursuant to which guarantor shall be responsible for any
losses and costs incurred by NYTC Member by reason of a voluntary or collusive
involuntary bankruptcy filing by FC
Member, and FC Member shall diligently defend against and seek to have
dismissed any other involuntary bankruptcy filing against FC Member, prior to
repayment in full of the NYTC Extension Loan; provided, however, that if as of
the date of the closing of the NYTC Extension Loan, FC Entity shall have
transferred all of its interest in FC Member to ING Entity as may be permitted
under the Recognition Agreement, in lieu of the Bad Acts Guaranty from FCE, FC
Member shall have the right, in its sole and absolute discretion, to cause to
be delivered at the closing of the NYTC Extension Loan either (i) a Bad Acts
Guaranty from ING Vastgoed, together with a keep-well guaranty from ING Bank
N.V. (“ING Bank”) for the benefit of NYTC Member in form reasonably
satisfactory to NYTC Member and ING Bank to contribute funds to ING Vastgoed
equal to the amount of any repayment of intercompany loans and interest thereon
made by ING Vastgoed after the date hereof and any dividends and/or other
distributions paid to ING Bank after the date hereof up to, and not exceeding,
the outstanding principal amount and any accrued interest on the NYTC Extension
Loan  (it being acknowledged that said
keep-well guaranty shall not constitute a guaranty of the obligations of ING
Vastgoed and shall not require ING Bank to contribute any amount in excess of
such intercompany loans and interest thereon and such dividends and other
distributions) or (ii) a stand-by

 

53

 

letter of credit from ING Bank in the amount of
the NYTC Extension Loan in customary form reasonably acceptable to ING Bank and
NYTC Member.   As a condition to the
delivery of the Bad Acts Guaranty by ING Vastgoed, (x) ING Vastgoed shall be
required to have shareholders’ equity on the date of the closing of the NYTC
Extension Loan that is not less than its shareholders’ equity set forth in the
financial statements for ING Vastgoed for the year ending December 31,
2000 and (y) ING Vastgoed shall represent and warrant to NYTC Member in writing
at the closing of the Extension Loan that there was no material adverse change
in the financial condition of ING Vastgoed between the financial condition
reflected in the financial statements for ING Vastgoed for the year ending
December 31, 2000 and December 12, 2001.

 

(viii)                        NYTC Member shall not be
required to incur any additional costs or expenses by reason of any extension
of the Construction Loan and/or the Bridge Financing and FC Member shall pay
promptly and/or reimburse NYTC Member with respect to any such additional costs
and expenses, the failure of which shall be deemed a default under this
Agreement;

 

(ix)                                there
shall be no capitalization of interest on the Construction Loan or the Bridge
Financing during the Extension Period (although there may be lease-up deficits
covered under the Construction Loan or the Bridge Financing provided that these
shall not exceed the amount budgeted by the construction lender for the period
through Substantial Completion) and FC Member shall pay interest on its Share
of the Construction Loan (or substitute the Bridge Financing, as the case may
be) during the Extension Period on a current basis; and

 

(x)                                   FC
Member shall at all times during the Extension Period continue to use
commercially reasonable efforts to obtain the FC Member Unit Permanent
Financing in the amount required to repay FC Member’s Share of the Construction
Loan or the Bridge Financing and the NYTC Extension Loan, in default of which
NYTC Member may, after giving notice to FC Member and FC Member failing to cure
said default within thirty (30) days, proceed to exercise its remedies under
Section 3.04.  On request by NYTC
Member from time to time during the Extension Period, FC Member will report the
status of its efforts and the measures taken to obtain the FC Member Unit
Permanent

 

54

 

Financing, recognizing that if the financing markets are in turmoil so
that it is futile to attempt to obtain a commitment for the FC Member Unit
Permanent Financing, it shall be commercially reasonable for FC Member to
curtail its efforts including the tenacity and frequency with which it contacts
lenders or solicits proposals for commitments from such lenders for financing.

 

It is understood that FC
Member may obtain bridge or substitute financing for the Construction Loan
during the Extension Period (the “Bridge Financing”), subject to the foregoing
provisions of this Section 6.03. 
Notwithstanding any of the foregoing, on or prior to the expiration of
the Extension Period, FC Member must obtain the FC Member Unit Permanent
Financing or use its own funds to contribute to the Company its Share of the
Construction Loan, and the NYTC Extension Loan, and, in such event the Company
shall repay the balance of the Construction Loan and will distribute to NYTC
Member the amount of the NYTC Extension Loan.

 

If FC Member does not (i)
subject to subsection (x) above, use commercially reasonable efforts to
obtain FC Member Unit Permanent Financing as of the Completion Date and at all
times during the Extension Period and (ii) on or before the Completion Date or
the expiration of the Extension Period, as applicable, either obtain the FC
Member Unit Permanent Financing or use its own funds to enable the Company to
repay the balance of the Construction Loan (or Bridge Financing) and the NYTC
Extension Loan, and such failure shall continue beyond thirty (30) days after
written notice to FC Member from NYTC Member, then such failure shall be a
default under the Mortgage securing the Extension Loan as well as a default
entitling NYTC Member to exercise its remedies under Section 3.04(b) for
failure of FC Member to make a required Capital Contribution without regard to
the $5,000,000 threshold under said Section 3.04(b) (without limiting any
other remedies NYTC Member may have under any guarantees from FCE or
otherwise).

 

ARTICLE VII

BOOKS, RECORDS, REPORTS AND ACCOUNTING

 

7.01                           Books and Records; Audits and Reports; Budgets.

 

(a)                                  The
Board of Managers shall keep just and true books of account with respect to the
operations of the Company.  Such books
and records shall be maintained at the principal office of the Company set
forth in Section 2.04 hereof.  The
Company shall also maintain at its office the following records:  (i) a current list of the full name and last
known business address of each Member; (ii) copies of the Company’s federal,
state and local income tax returns and reports, if any; (iii) copies of any
financial statements of the Company; (iv) copies of all tenant leases; and (v)
copies of all contracts and agreements to which the Company is party.  All Members, and their duly authorized
representatives, shall at all reasonable times upon prior notice have access to
the books and records maintained in accordance with this Section 7.01 for
any purpose reasonably related to the Member’s interest as a member of the

 

55

 

Company, and may
make copies of such books and records as well as audit the same at their own
expense.

 

(b)                                 The
Board of Managers shall furnish to each Member, within ninety (90) days after
the close of each fiscal year of the Company, a written statement of the Board
of Managers containing a balance sheet of the Company and the Company’s net
income or net loss for such fiscal year. 
In addition, the Board of Managers shall furnish to any Member such
other information in its possession as such Member may from time to time
reasonably request.

 

(c)                                  Promptly
after receipt, the Board of Managers shall furnish to the Members all proposed
budgets prepared by Developer for development costs and construction costs
related to the Project, and the allocation of said costs between the Members as
contemplated hereby (including each of the Project Budget and Development
Budget, as defined in the Development Agreement), and each revision thereof
approved by the Members, each said budget shall together with all approved
revisions thereof be a “Budget”.

 

(d)                                 FC
Member shall cause the Developer to maintain and make available to each Member
a Work Authorization Log, together with copies of all related Work
Authorizations, and copies of all invoices, relating to costs covered by
Section 3.01(a).  FC Member shall
cause Developer to produce monthly reports for each calendar month during the
period prior to the Construction Loan Closing Date showing the Budget (i.e.,
the amount for work that has been authorized by the Members under
Section 3.01(a)), commitments made against such Budget, approved revisions
to such Budget, trends for revisions to the same and cost allocations between
the Members.  FC, in its capacity as a
Member, shall cause Developer to furnish to each Member all reports that
Developer is required to furnish under the Development Agreement.

 

7.02                           Changes in Interests.  If there is a change in any Member’s
interest in the Company during any fiscal year (including a change as a result
of a transfer of a Member’s interest or the admission of a new Member), the
books of the Company shall be closed on the last day of the month preceding the
month in which the change is considered to have occurred in accordance with the
following sentence.  For the purposes of
the preceding sentence, changes in 
interests during any month shall be treated as having occurred on the
first day of that month.  The TMP shall
make determinations required for tax purposes pursuant to this
Section 7.02 in accordance with Section 7.05 hereof and applicable
Treasury Regulations.  In the event that
Treasury Regulations are adopted which require a different treatment from that
described above, the TMP is authorized to follow the treatment required by such
Regulations.

 

7.03                           Uninvested Funds and Banking.  All uninvested funds of the Company shall be
invested in such accounts as the Members approve, provided that the Board of
Managers may invest the funds in U.S. government securities, certificates of
deposit or money market accounts of banks having a net worth in excess of $500
million without such approval, and withdrawals from such bank accounts will be
made upon such signature or signatures as the Board of Managers may
designate.  The funds of the Company
will not be commingled with the funds of any other Person, except that the
Company shall utilize FC Member’s cash management system.

 

56

 

7.04                           Fiscal Year; Accounting Method.  The fiscal year of the Company shall be the
calendar year unless the Board of Managers properly adopts a different fiscal
year as permitted by law.  The Company
shall utilize the accrual method of accounting.

 

7.05                           Tax Matters Member.   NYTC Member shall be the tax matters member
(“TMP”) of the Company for purposes of Code Section 6231.  The TMP shall have the authority of a tax
matters partner under applicable Code provisions, and in addition shall have
the exclusive authority to perform the following, whether or not included
within the authority of a tax matters partner within applicable Code
provisions:

 

(a)                                  Prepare
and file or supervise the preparation and filing of the Company’s federal,
state and local tax returns.

 

(b)                                 Furnish
or cause to be furnished to the Members, within one hundred twenty (120) days
after the close of the taxable year of the Company (or such later date as shall
be acceptable to the Members), a Schedule K-1 to Form 1065 with respect to
their interest in the Company and such other tax information with respect to
the Company as may be reasonably required by the other Members in connection
with the preparation of such Member’s tax returns.

 

(c)                                  Furnish
the name, address, membership interest and taxpayer identification number of
each Member to the Internal Revenue Service and take such action as may be
reasonably necessary to constitute every Member as a “notice partner” as that
term is defined in Code Section 6231.

 

(d)                                 Refuse
to extend the statute of limitations with respect to tax items of the Company
without the unanimous written consent of the Members.

 

(e)                                  1.                                       Except
with respect to any item, amount, election or reporting position which relates
solely to one Member’s Space or which only affects items or amounts reported on
one Member’s Federal Schedule K-1 to Form 1065 (or equivalent state or
local report, form or schedule) or any item or amount otherwise allocable
solely to one Member and which does not affect (a) any item or amount on any
other Member’s Schedule K-1 (or equivalent) or (b) any item or amount
otherwise allocable to or reportable by or with respect to, any other Member,
to:

 

(i)                                     select
the shortest permissible depreciation period and consistent applicable
conventions for all eligible Company assets:

 

(ii)                                  elect
not to capitalize interest, taxes or other items to the extent required or
permitted pursuant to Code Section 263A or other applicable provisions;

 

(iii)                               cause
the Company to adopt the accrual method of accounting and make any other tax
elections on behalf of the Company as the TMP deems necessary or advisable;

 

57

 

(iv)                              allocate
costs or expenditures among depreciable or non-depreciable assets of the
Company consistent with applicable law; and

 

(v)                                 adopt
and reflect in the Company’s tax returns any tax reporting positions other than
those specified above which the TMP deems necessary or desirable after
consultation with the other Member and the Company’s professional advisors;

 

2.                                       With
respect to any item, amount, election or reporting position which affects only
one Member or is solely attributable to one Member’s Space as described in
subsection 7.05(e)(1) above, the TMP shall report and elect as reasonably
directed by that Member.

 

(f)                                    Institute,
conduct, prosecute and/or defend, with counsel of its choosing, any audits,
proceedings, contests or litigations between the Company and any taxing
authority, whether administrative or judicial (collectively, “Tax
Controversies”), and compromise or settle the same as it may determine in its
discretion; provided, that (i) the TMP shall keep the other Members
fully informed with respect to any Tax Controversy and shall consult with the
other Members with respect thereto prior to effecting any compromise or
settlement thereof; (ii) if the Tax Controversy affects only one Member or
relates solely to one Member’s Space (and does not relate to or affect any
common elements or the Company as a whole), the TMP shall follow the reasonable
instructions of that Member in connection with such Tax Controversy and shall
not settle or compromise the same except with the consent of that Member; and
(iii) if settlement or compromise of any issue involved in a Tax Controversy
may have a material adverse effect on either Member, the TMP may not settle
or  compromise such issue without the
consent of the affected Member.

 

(g)                                 Elect
for the Company at the request of any Member to adjust the basis of the
property of the Company under Code Section 754, except that in the absence
of an agreement by the Members to the contrary, no such election shall be made
unless the adjustments to the requesting Member’s share of the basis of Company
assets will result in a basis increase of more than $500,000.

 

(h)                                 The
TMP shall use its best efforts to provide each Member with drafts of the
Company’s federal, state and local income and other material tax returns no
less than thirty (30) days prior to the due date thereof, and such returns
shall be deemed accepted by each Member if no written objection thereto is
received by the TMP within fifteen (15) days after such draft tax returns are
provided to the Member.  The Members and
the TMP shall endeavor in good faith to resolve any such objections prior to
the due date of such returns.

 

(i)                                     Members
shall not take positions on their separate tax returns or other communications
with a taxing authority with respect to items attributable to the Company which
are inconsistent with the reporting positions adopted by the TMP in the Company’s
tax returns unless a Member is required by a taxing authority to take an
inconsistent position, in which event such Member may take such inconsistent
position if it provides the TMP, at least twenty (20) days prior to the filing
of the return or other document which is to incorporate such inconsistent

 

58

 

position, written
notice of such proposed inconsistent position and an explanation of the reason
such inconsistent position is required, including a full statement of the
position to be taken in the form in which such inconsistent position is to be
disclosed and included in such Member’s tax return or otherwise submitted to
the applicable taxing authority.  Subject
to the preceding sentence, nothing in this Section shall limit the ability
of any Member to take any action in its individual capacity relating to
administrative proceedings or Company matters that under the Code, or any
similar state or local provision, is left to the determination of an individual
Member.

 

(j)                                     The
TMP will be entitled to reimbursement from the Company for all reasonable costs
and expenses (including reasonable legal and accounting fees) incurred by it in
complying with and carrying out its responsibilities as TMP. The costs and
expenses of any Tax Controversy which affects only one Member, as to which the
TMP is required to follow the direction of that Member as provided above, shall
be paid by that Member. The costs and expenses of any other such tax proceeding
or controversy shall be paid by the Company.

 

(k)                                  FC
Member shall, and shall cause Developer to, provide the TMP with access to the
Company’s books and records sufficient to permit the TMP to perform its duties
hereunder, and shall provide the TMP with such additional information and
assistance as the TMP may reasonably request.

 

(l)                                     To
the fullest extent permitted by law, the TMP shall be entitled to indemnity
from the Company for any act performed by it within the scope of its duties as
TMP, except for acts which constitute gross negligence or willful misconduct,
fraud or breach of fiduciary duty as a TMP, provided that any indemnity under
this Section 7.05(l) shall be provided out of and to the extent of Company
assets only and no Member shall have any personal liability on account thereof.

 

7.06                           Section 754 Election.  The Board of Managers in its discretion may
cause the Company to elect under Code section 754 to adjust the basis of
Company assets upon a distribution of Company property as described in Code
section 734 or a transfer by a Member of its interest in the Company as
described in Code section 743.

 

ARTICLE VIII

TRANSFERS OF INTERESTS; DEFAULT  

 

8.01                           Transfers of Interests.

 

(a)                                  Except
as provided in this Article VIII and the Recognition Agreement, no Member
may, directly or indirectly, Transfer its interest or any right or interest
hereunder, and no Person may Transfer a direct interest in a Member, to any
Person without the prior written consent of each other Member, which consent
may be withheld in such non-transferring Member’s sole and absolute
discretion.  No such Transfer shall be
valid unless the Transferee agrees to be bound by this Agreement and to assume
all of the obligations of the transferring Member under this Agreement with
respect to such transferred interest and executes such documents as may be
necessary, in the reasonable opinion of the non-transferring Member, to

 

59

 

assume such
obligations.  The Recognition Agreement
is incorporated herein by reference, and those transfers and pledges permitted
thereunder shall be permitted under this Agreement, subject to the terms of the
Recognition Agreement.

 

(b)                                 FC
Member may assign all or part of its interest in the Company to an Affiliate of
FC Member without approval of NYTC Member and NYTC Member may assign all or
part of its interest in the Company to an Affiliate of NYTC Member without
approval of FC Member, provided however, that the foregoing right shall not
include a pledge or any other encumbrance of all or any portion of a Member’s
interest in the Company, which shall require the prior written approval of the
other Member.  In addition, (i) the
members in FC Member may transfer membership interests in FC Member, without
approval of NYTC Member; provided, however, that Bruce C. Ratner, FCE or an
Affiliate of either of them shall retain management control of FC Member; and
(ii) the Members in NYTC Member may transfer interests in NYTC Member, without
approval of FC Member; provided, however, that The New York Times Company or an
Affiliate thereof shall retain management control of NYTC Member.  At least five (5) days prior to a Transfer
pursuant to this Section 8.01(b), the Member with respect to which such
Transfer relates shall promptly provide evidence reasonably satisfactory to
such other Member that the requirements of this Section 8.01(b) have been
satisfied as to the applicable Transfer.

 

(c)                                  Any
Transfer of interests permitted under this Agreement shall result in the
Transfer of all of the rights, benefits and privileges of the Transferor under
this Agreement with respect to such interest. 
Any Transfer by operation of law which does not otherwise comply with
Section 8.01(b) shall confer upon the Transferee the right to receive no
more than the Transferor’s share in allocation and distributions hereunder, but
such Transferee shall not be entitled to participate in any vote or decision to
be made by the Members pursuant to this Agreement or exercise any other rights
as a Member.

 

(d)                                 No
Transfer of any interest, or any right or interest in such interest, shall
release the Transferor from those liabilities to the Company which such
Transferor has as of the date of such transfer.

 

(e)                                  The
Company agrees that it will record the Transfer of an interest and the
admission of a new Member on its books only in accordance with the terms and
conditions of this Agreement.  Any
purported Transfer of an interest by a Member that is not in compliance with
the terms and conditions of this Agreement will be null and void, and the
Transferee under any such purported Transfer will acquire no title or ownership
thereby.

 

8.02                           Act of Insolvency.

 

(a)                                  If
any Member (a “Section 8.02 Member”) shall commit an Act of Insolvency,
the other Member shall have the option (if it shall so elect by notice to the
Section 8.02 Member) to acquire the Section 8.02 Member’s interest in
the Company by paying to the Section 8.02 Member the amount such Member
would receive if the assets of the Company were sold for the Fair Market Value
thereof and the net proceeds of such sale were distributed in accordance with
Section 9.02.

 

60

 

(b)                                 Within
ten (10) days following the date of the exercise of the option set forth in
Section 8.02(a), the Member obligated to purchase shall, by notice to the
Section 8.02 Member, fix a closing date which shall be not later than
thirty (30) days following the date of the exercise of the option and a place
of closing in the City and State of New York, and the closing shall take
place on said date at such place.

 

(c)                                  At
the closing under this Section 8.02, the Section 8.02 Member shall
execute and deliver to the purchasing Member assignments of interest, deeds,
bills of sale, instruments of conveyance, and other instruments as the
purchasing Member may reasonably require, to give it good and clear record
title to all of the Section 8.02 Member’s right, title and interest in and
to the Company and the Property, subject to liabilities and obligations as provided
in Section 8.02(d) of this Agreement, and the Section 8.02 Member
hereby irrevocably constitutes and appoints the purchasing Member its
attorney-in-fact to execute, acknowledge and deliver such instruments as may be
necessary or appropriate to carry out and enforce the provisions of this
Section 8.02.  The purchase price to be paid pursuant to
Section 8.02(a) shall be delivered to the Section 8.02 Member in cash
in immediately available funds at the closing under this Section 8.02 or,
if later, within five (5) days after determination of the price to be paid
pursuant to Section 8.02 (a).

 

(d)                                 The
sale by the Section 8.02 Member of its interest in the Company pursuant to
this Section 8.02 shall be subject to all liabilities and obligations of
the Company, matured or unmatured, absolute or contingent, other than loans
made to the Company by the Section 8.02 Member, and upon the consummation
of such sale, the purchasing Member shall execute and deliver to the
Section 8.02 Member, in form satisfactory to the Section 8.02 Member,
an instrument assuming the aforesaid liabilities and obligations of the
Company, together with a covenant to hold the Section 8.02 Member harmless
from and against such liabilities and obligations.

 

ARTICLE IX

DISSOLUTION AND LIQUIDATION

 

9.01                           Events of Dissolution.

 

The Company shall be
dissolved by any of the following events, whichever shall first occur:

 

(a)                                  the
sale, disposition or liquidation of substantially all of the property owned by
the Company;

 

(b)                                 11:59
p.m., Eastern Standard Time, December 31, 2099;

 

(c)                                  as
otherwise required by the LLC Law or as provided in this Article IX or
elsewhere in this Agreement, or as determined by both Members; or

 

61

 

(d)                                 On
or after the Conversion Date or, if the Extension Period is applicable, on or
after the day on which FC Member satisfies its obligations under
Section 3.01(h), unless the Members agree to the contrary, the Company
will be dissolved and liquidated.

 

9.02                           Liquidation upon Dissolution.  Upon dissolution of the Company, the Board
of Managers, on behalf of all Members, as liquidating trustee, shall dissolve
the Company, sell (unless the dissolution occurs by reason of the Conversion
Date under Section 9.01(d), in which event all Company assets shall be
distributed as provided below and shall not be sold) or distribute all Company
properties within a reasonable time, pay or arrange for the payment of all
Company debts and expenses and distribute the balance of the Company assets to
the Members in accordance with this Section 9.02.  Dissolution of the Company shall be
effective on the day on which the event occurs giving rise to the dissolution,
but the Company shall not terminate until the Company’s Articles of
Organization shall have been cancelled and the assets of the Company shall have
been distributed as provided herein. 
Notwithstanding the dissolution of the Company prior to the termination
of the Company, as aforesaid, the business of the Company and the affairs of
the Members, as such, shall continue to be governed by this Agreement.  At the time of such dissolution, the assets
of the Company will be distributed to the Members in kind as follows:

 

(ii)                                  If
the dissolution occurs by reason of the Conversion Date under
Section 9.01(d) or if the Property or other assets of the Company under
any other circumstance are to be distributed to the Members in kind rather than
sold:

 

(a)                                  The
NYTC Member Space (and any related interest in the common areas within the
Property) and all assets of the Company which relate solely to or are derived
from the NYTC Member Space utilizing the Allocation Methodology will be
distributed exclusively to NYTC Member, subject to any liabilities allocable to
the NYTC Member Space and said related assets;

 

(b)                                 The
FC Member Space (and any related interest in the common areas within the
Property) and all assets of the Company which relate solely to or are derived
from the FC Member Space utilizing the Allocation Methodology will be
distributed exclusively to FC Member, subject to any liabilities allocable to
the FC Member Space and said related assets; and

 

(c)                                  Any
cash reserves or other liquid assets of the Company not directly related to the
NYTC Member Space or the FC Member Space will be distributed to the Members in
proportion to and to the extent of their Percentage Interests.

 

(ii) If the Company’s
assets have been sold in connection with the liquidation, the Net Sales
Proceeds shall be distributed as provided in Section 4.03(a) hereof.  Unless all Members determined to distribute
in kind any deferred payment obligations or purchase money notes received in
exchange for the Company’s assets, such obligations shall be retained by the
Company and the Company shall not be dissolved until such obligations are fully
paid and the cash proceeds distributed; provided, that the Board of Managers
may determine to place such assets in a liquidating trust for the benefit of
the Members, in which event the Company may be dissolved upon transfer of such
obligations to such liquidating trust and distribution of all other assets as
provided above.

 

62

 

ARTICLE X

FAIR MARKET VALUE; FAIR MARKET RENT

 

10.01                     Appraisal Procedure.  At any time that the “Fair Market Value” is
to be determined pursuant to this Section 10.01, the Members shall, for a
period of twenty (20) days, meet and attempt in good faith to agree on the Fair
Market Value.  If the Members do not
reach agreement upon Fair Market Value within said twenty (20) days, then Fair Market
Value shall be determined by arbitration using three (3) arbitrators, each of
whom is a member of the American Institute of Real Estate Appraisers (or any
successor thereto) and has at least fifteen (15) years of experience with and
is actively engaged in the valuation of high-rise, premium first-class office
buildings in the County, City and State of New York.  Any Member may serve a written notice on the other Member stating
that an arbitration should be conducted pursuant to this Section 10.01 and
stating that each party is obligated to name an arbitrator within fifteen (15)
days after the giving of such notice. 
Within fifteen (15) days after such notice is given, (i) the NYTC Member
shall nominate and appoint one (1) arbitrator, and (ii) the FC Member shall
nominate and appoint one (1) arbitrator.  
If one Member shall fail to name its arbitrator within the
foregoing  fifteen (15) day period and
such failure continues for an additional period of three (3) business days
after notice from the Member which has named its arbitrator, then such Member
which has named its arbitrator shall be permitted to name the second arbitrator
and shall do so within a further period of seven (7) days following expiration
of the three (3) business days period.  
The two (2) arbitrators shall, within ten (10) days after the
appointment of the second arbitrator, and before exchanging views as to the
question at issue, appoint in writing a third arbitrator (the “Third Valuation
Arbitrator”) and give written notice of such appointment to the Members.  In the event the arbitrators shall fail to
appoint or agree upon a Third Valuation Arbitrator within said ten (10) day
period, then the Third Valuation Arbitrator shall be selected by the parties,
if they so agree upon such Third Valuation Arbitrator within a further period
of five (5) business days.  If the Third
Valuation Arbitrator shall not be appointed or agreed upon within the time
herein provided, then either Member may apply to the American Arbitration
Association for the appointment of such Third Valuation Arbitrator.  The arbitrators shall be sworn faithfully
and fairly to determine the question at issue. 
The question to be determined by the arbitrators shall be: “What is the
Fair Market Value with respect to such property as of the date in
question?”  The arbitrators shall afford
to the Members the right to submit evidence, with the privilege of
cross-examination on the question at issue. 
Such hearings shall be concluded as expeditiously as practicable and in
any event within thirty (30) days following the appointment of the Third
Valuation Arbitrator.  All three (3)
arbitrators shall submit their determinations of Fair Market Value
simultaneously in the presence of the Members on a “sealed bid” basis within
fifteen (15) days after conclusion of such hearings.  If the two (2) arbitrators initially appointed by the parties
shall have rendered different determinations of Fair Market Value, then (i) the
determination of the one of such two (2) arbitrators which is closest to the
determination of the Third Valuation Arbitrator shall be deemed to be the Fair
Market Value, and (ii) if the determination of the Third Valuation Arbitrator
is exactly the average of the other two (2) determinations, then the
determination of the Third Valuation Arbitrator shall be deemed to be the Fair
Market Value.  The determination of Fair
Market Value in accordance with this Section 10.01 shall be binding upon
the parties.  Each Member shall pay the
fees and expenses of the arbitrator appointed by it and the fees and expenses
of the Third Valuation Arbitrator shall be divided equally between them.  In the event any arbitrator appointed as
aforesaid shall thereafter

 

63

 

die or become
unable or unwilling to act, such arbitrator’s successor shall be appointed in
the same manner provided in this Section 10.01 for the appointment of the
arbitrator so dying or becoming unable or unwilling to act.

 

10.02                     In
the event the Fair Market Rent for any FC Member Space is to be determined
pursuant to the appraisal procedure set forth in this Section 10.02, the
Members shall, for a period of twenty (20) days, meet and attempt in good faith
to agree on the Fair Market Rent.  If
the parties do not reach agreement upon Fair Market Rent within said twenty
(20) days, then Fair Market Rent shall be determined by arbitration using three
(3) arbitrators each of whom is a licensed real estate broker in New York State
and has at least fifteen (15) years of experience with and is actively engaged
in the leasing of office space in high-rise premium first-class office
buildings in the County, City and State of New York.  Any Member may serve a written notice on the other Member stating
that an arbitration should be conducted pursuant to this Section 10.02 and
stating that each Member is obligated to name an arbitrator within fifteen (15)
days after the giving of such notice. 
Within fifteen (15) days after such notice is given, (i) the NYTC Member
shall nominate and appoint one (1) arbitrator, and (ii) the FC Member shall
nominate and appoint  one (1)
arbitrator.  If one Member shall fail to
name its arbitrator within the foregoing fifteen (15) day period and such
failure continues for an additional period of three (3) business days after
notice from the Member which has named its arbitrator, then such Member which
has named its arbitrator shall be permitted to name the second arbitrator and
shall do so within a further period of seven (7) days following expiration of
the three (3) business days period.  
The two (2) arbitrators shall, within ten (10) days after the
appointment of the second arbitrator, and before exchanging views as to the
question at issue, appoint in writing a third arbitrator (the “Third Rental
Arbitrator”) and give written notice of such appointment to the Members.   In the event the arbitrators shall fail to
appoint or agree upon a Third Rental Arbitrator within said ten (10) day
period, then the Third Rental Arbitrator shall be selected jointly by the
Members, if they so agree upon such Third Rental Arbitrator within a further
period of five (5) business days.  If
the Third Rental Arbitrator shall not be appointed or agreed upon within the
time herein provided, then either Member may apply to the American Arbitration
Association for the appointment of such Third Rental Arbitrator.  The arbitrators shall be sworn faithfully
and fairly to determine the question at issue. 
The question to be determined by the arbitrators shall be: “What is the
Fair Market Rent of the FC Member Space in question as of the date of exercise
of the option to lease said space taking into account the form of lease, if
applicable, which Fair Market Rent may include stated increases in fixed rent,
if appropriate?”  The arbitrators shall
afford to the Members the right to submit evidence, with the privilege of
cross-examination on the question at issue. 
Such hearings shall be concluded as expeditiously as practicable and in
any event within thirty (30) days following the appointment of the Third Rental
Arbitrator.  All three (3) arbitrators
shall submit their determinations of Fair Market Rent simultaneously in the
presence of the Members on a “sealed bid” basis within fifteen (15) days after
conclusion of such hearings.  If the two
(2) arbitrators initially appointed by the Members shall have rendered
different determinations of Fair Market Rent, then (i) the determination of the
one of such two (2) arbitrators which is closest to the determination of the
Third Rental Arbitrator shall be deemed to be the Fair Market Rent of the
subject FC Member Space, and (ii) if the determination of the Third Rental
Arbitrator is exactly the average of the other two (2) determinations, then the
determination of the Third Rental Arbitrator shall be deemed to be the Fair
Market Rent of the subject FC Member Space. 
If the determinations of Fair Market Rent shall include increases in
fixed rent, the same shall be discounted to present

 

64

 

value at the
annual rate of ten percent (10%) in order to apply the foregoing determination
process.  The determination of Fair
Market Rent in accordance with this Section 10.02 shall be binding upon
the Members.  Each Member shall pay the
fees and expenses of the arbitrator appointed by it and the fees and expenses
of the Third Rental Arbitrator shall be divided equally between them.  In the event any arbitrator appointed as
aforesaid shall thereafter die or become unable or unwilling to act, such
arbitrator’s successor shall be appointed in the same manner provided in this
Section 10.02 for the appointment of the arbitrator so dying or becoming
unable or unwilling to act.

 

In rendering any
determination of Fair Market Rent of the subject FC Member Space, the
arbitrators shall assume or take into consideration all of the following:

 

(i)                                     there
is an open and competitive market for the subject space;

 

(ii)                                  market
rents then being charged, including increases in fixed rent over a period of
time, work allowances and rent concessions being granted, for comparable space
in comparable buildings;

 

(iii)                               the
FC Member, as owner, and NYTC Member, as tenant, of the subject space are
acting prudently and are typically motivated;

 

(iv)                              the
FC Member, as owner, and NYTC Member, as tenant, of the subject space are well
informed and well advised and each is acting in what it considers its own best
interest;

 

(v)                                 the
subject space is to be let in as-is condition, provided that the arbitrators
shall not take into consideration any above building standard improvements or
finishes which shall have been installed in the subject space;

 

(vi)                              the
FC Member will not incur certain costs customarily incurred by landlords in
leasing space to unaffiliated third parties in the open market, which costs may
reduce the Fair Market Rent that would otherwise be charged by a landlord in
comparable circumstances, such as the following:

 

(A)                              FC
Member will not be requested to provide a work allowance or work letter or
incur any related expenditure in preparing the subject space for a tenant’s
occupancy (including, without limitation, architect’s and engineering fees,
demolition costs and legal fees);

 

(B)                                there
will be no period during which the subject space shall not be occupied or
during which base rent and additional rent shall be abated;

 

(C)                                FC
Member will not incur a brokerage commission;

 

(D)                               FC
Member will not incur any “takeover costs” or similar expenses in assuming or
mitigating a potential tenant’s leasing costs at another location; and

 

65

 

(E)                                 FC
Member will not incur any advertising or promotional expenditures in renting
the subject space to a prospective tenant.

 

(vii)                           The net
worth of The New York Times Company in relation to a hypothetical prospective
tenant or its guarantor;

 

(viii)                        That the
tenant will pay its share of real estate taxes, PILOT (as defined in the Ground
Lease) and common charges without base years or base amounts; and

 

(ix)                                The
term of the sublease and the other terms and conditions of the sublease for the
subject FC Member Space.

 

In no event, however,
shall the arbitrators consider, or make any increase or decrease in the Fair
Market Rent for the subject FC Member Space by reason of the fact that The New
York Times Company (and/or its Affiliates) is a current occupant of the
building or that the building is the headquarters for The New York Times
Company, the arbitrators to consider the Fair Market Rent on the basis of a new
transaction with an unrelated third party.

 

ARTICLE XI

ARBITRATION

 

11.01                     Arbitration.

 

(a)                                  In
the event of a dispute between the Members with respect to the interpretation
or application of any provision of this Agreement, or any other matter
specifically mentioned herein as a matter to be decided by arbitration, such dispute
or matter shall be shall be determined and resolved by arbitration (and not by
litigation) conducted in the City, County and State of New York in accordance
with the terms of this Section 11.01 and the then applicable commercial
arbitration rules of the American Arbitration Association, provided that if the
terms of this Section 11.01 differ from or conflict with the then
applicable commercial arbitration rules, the arbitrators shall be chosen and
the arbitration shall be governed in accordance with and pursuant to the terms
and provisions of this Section 11.01.

 

(b)                                 The
arbitration procedures shall commence when either Member submits the matter to
arbitration by notice to the other Member. 
Not later than twenty (20) days after the arbitration procedure has
commenced, each Member shall appoint an arbitrator and notify the other Member
of such appointment by identifying the appointee.  Each Member hereto agrees to select as its respective appointee
an independent and unaffiliated individual who has not less than (10) years
experience with respect to the subject matter at hand.  Not later than ninety (90) days after both
arbitrators are appointed, each shall separately, but simultaneously, submit in
a sealed envelope to each arbitrator their separate suggested resolution of the
dispute or matter and shall provide a copy of such submissions to the other
Member.  The two selected arbitrators,
after reviewing such submissions, shall determine whether either proposed resolution
more fairly reflects the intention of the parties as expressed in this
Agreement or is otherwise in the best interest of the Company.  If both arbitrators agree that one of said
proposed resolutions is preferable upon the basis set forth in the preceding
sentence, they shall so declare and their decision shall be final and binding
upon the Members.  If the two selected
arbitrators are unable

 

66

 

to agree on one of
the proposed resolutions within thirty (30) days after submission thereof, then
the arbitrators shall select a third arbitrator (the “Third Dispute
Arbitrator”) who shall also be an independent and unaffiliated individual with
not less than ten (10) years experience in the subject matter at hand, such
selection to take place within the ten (10) days after the expiration of the
thirty (30) day period.  If no
arbitrator is selected within such ten (10) day period, either Member may
immediately petition the American Arbitration Association to appoint such Third
Dispute Arbitrator.  The Third Dispute
Arbitrator shall conduct an arbitration pursuant to the commercial arbitration
rules of the American Arbitration Association, its successor or, if it shall
cease to exist, an entity performing similar functions.  The Third Dispute Arbitrator shall select
either proposed resolution not later than thirty (30) days after appointment,
and the Third Dispute Arbitrator’s decision shall be final and binding upon the
Members.  The arbitration decision,
determined as provided in this Section, shall be conclusive and binding on the
parties, shall constitute an “award” by the Arbitrator within the meaning of
the American Arbitration Association rules and applicable law and judgment may
be entered thereon in any court of competent jurisdiction.

 

(c)                                  The
fees of the arbitrators as well as expenses incident to the proceedings, shall
be assessed as the arbitrators determine, it being the intention of the Members
that the non-prevailing Member pay such fees and expenses.  The fees of respective counsel engaged by
the parties, and the fees of expert witnesses and other witnesses called or
engaged by the Members, shall be paid by the non-prevailing Member.

 

ARTICLE XII

ALLOCATION METHODOLOGY.

 

12.01                     Allocation of Costs.

 

(a)                                  Costs
which are part of the Total Costs of the Project are generally to be allocated
to the Members in accordance with their respective Percentage Interests.  However, the Members acknowledge that
certain costs which are part of the Total Costs of the Project may relate
either entirely to the NYTC Member Space or the FC Member Space, or may relate
to either the NYTC Member Space or the FC Member Space in a percentage which
varies from their respective Percentage Interests.  For example, certain components may be built to a higher
tolerance than is applicable to the Core and Shell in general in order to
accommodate a particular use of the NYTC Member Space or the FC Member Space,
or common areas and equipment may be modified to reflect a higher requirement
for telecommunications, electricity, HVAC or other uses.  In addition, once the plans and
specifications for the Improvements and the related Budget (and allocation of
construction costs between the Members) have been approved, either Member may
request changes to the plans and specifications as permitted under
Section 5.07, which may result in increased costs to the Company.  Furthermore, as set forth in this Agreement
(including, without limitation, Sections 3.01(c), 3.01(d) and 3.01(e)), the
Members have agreed that certain costs will be allocated to the Members in a
manner other than in accordance with their respective Percentage
Interests.  Accordingly, the Members
agree that in such instances and in other situations where allocating costs in
accordance with the Percentage Interests would not result in an equitable
allocation of such costs, such costs (and the corresponding Capital
Contributions and responsibility for indebtedness of the Company) and any tax
benefits, deductions, losses or

 

67

 

other related
costs attributable thereto will instead be allocated in accordance with the
methodology set forth in Exhibit T hereto, provided however, that FC Member
shall be solely responsible for any and all costs incurred in connection with
or payable to ING Entity or any other permitted equity investor in FC Member
and any and all fees and guaranteed payments to Developer and other Affiliates
of FC Entity under the Operating Agreement of FC Member.

 

(b)                                 In
furtherance of this Section 12.01, and not in limitation thereof, the
Members agree that certain payment obligations under the Ground Lease shall be
allocated as follows:

 

(i)                                           payment
obligations under Section 3.1 of the Ground Lease shall be allocated to
the Members in accordance with their respective Land Shares (except that (1)
said obligations shall with regard to below-grade retail be based upon whether
the same is located within FC Member Space or the NYTC Space, and (2) said
obligations with respect to rooftop garden space and discretionary inside
mechanical space referenced therein shall be allocated in accordance with the
Members’ respective Percentage Interests);

 

(ii)                                        payment
obligations under Section 3.2 of the Ground Lease shall be wholly
allocated to FC Member to the extent that the same relates to the Retail Space
and shall be wholly allocated to NYTC Member to the extent that the same
relates to the SPU;

 

(iii)                                     payment
obligations under Section 3.3 of the Ground Lease in respect of Sales Tax
Savings shall be wholly allocated to FC Member; and

 

(iv)                                    payment
obligations under Section 3.4 of the Ground Lease in connection with
Mortgage Recording Tax (as to Exempted Mortgages only) shall be wholly
allocated to NYTC Member;

 

(v)                                       payment
obligations under Section 3.5 of the Ground Lease shall be allocated to
the Members based upon whether the occupied square feet referenced therein are
located in the FC Member Space or the NYTC Member Space;

 

(vi)                                    the
Security Deposit under Section 10.9(a) of the Ground Lease shall be wholly
payable by FC Member and the Insurance Guaranty required thereunder shall be
provided by NYTC Member; and

 

(vii)                                 the
PA PILOT Reduction under Section 30.4 of the Ground Lease shall be wholly
allocated to NYTC Member.

 

(c)                                  Any
disputes as to the proper allocation of such costs (and the corresponding
Capital Contributions and responsibility or indebtedness of the Company) will
be decided pursuant to arbitration under Section 11.01, and any tax
benefits, deductions or losses attributable thereto shall be governed by the authority
of the TMP under Section 7.05 and shall be consistent with such
arbitration decision.

 

68

 

12.02                     Allocation of Net Cash Flow, Net Financing Proceeds
and Net Sale Proceeds. 
For purposes of determining the amount of Net Cash Flow, Net Financing
Proceeds and Net Sale Proceeds which is related to the NYTC Member Space and
the FC Member Space, respectively, receipts from the rental or other use of a
particular area of the Property, and costs, expenses and disbursements related
to, generated by, derived from or incurred with respect to, as the case may be,
a particular area of the Property, will be allocated to that particular area,
and general receipts of the Company and general costs, expenses and
disbursements not related to a particular area will be allocated in accordance
with the Percentage Interests. 
Notwithstanding the foregoing, if certain expenses not directly related
to the NYTC Member Space or the FC Member Space do not benefit the NYTC Member
Space and the FC Member Space in the same proportion as the Percentage
Interests, but are more properly allocated between the NYTC Member Space and
the FC Member Space in a different proportion which more equitably reflects the
relative benefit of such expenditures to the NYTC Member Space and the FC
Member Space, respectively, such expenses and any related tax benefits will
instead be allocated between the NYTC Member Space and the FC Member Space in
the proportion which more equitably reflects the relative benefits derived from
such expenses.  Any disputes as to the
proper allocation of such revenues and expenses will be decided pursuant to
arbitration under Section 11.01, and the reporting thereof shall be
governed by the authority of the TMP under Section 7.05 and shall be
consistent with such arbitration decision.

 

ARTICLE XIII

REPRESENTATIONS AND WARRANTIES

 

13.01                     Representations and Warranties of NYTC Member.  NYTC Member hereby represents and warrants
to FC Member and the Company that NYTC Member is a limited liability company
duly formed, validly existing and in good standing under the laws of the State
of New York, that it is not subject to any proceeding for the reorganization,
dissolution or liquidation thereof, that it has all requisite authorizations to
enter into this Agreement and to consummate the transactions contemplated
hereby and that the parties executing this Agreement on behalf of NYTC Member
are duly authorized to so do.

 

13.02                     Representations and Warranties of FC Member.  FC Member hereby represents and warrants to
NYTC Member and the Company that FC Member is a limited liability company duly
formed, validly existing and in good standing under the laws of the State of
New York, that it is not subject to any proceeding for the reorganization, dissolution
or liquidation thereof, that it has all requisite authorizations to enter into
this Agreement and to consummate the transactions contemplated hereby, and that
the parties executing this Agreement on behalf of FC Member are duly authorized
to so do.

 

ARTICLE XIV

MISCELLANEOUS

 

14.01                     Execution in Counterparts.  This Agreement may be executed in
counterparts, each of which thus executed shall be deemed an original, but all
of which, taken together, shall

 

69

 

constitute one and
the same document, binding upon the parties hereto, their heirs, executors,
administrators, successors and permitted assigns.

 

14.02                     Notices.  All
notices, requests, demands, consents and approvals under this Agreement shall
be in writing, and shall be hand delivered, sent by registered U.S. Mail,
return receipt requested, or sent by overnight courier service, designated for
next-day delivery, as follows:

 

	
  If to NYTC
  Member:

  	
   

  
	
   

  	
   

  
	
  NYT Real Estate
  Company LLC

  	
   

  
	
  c/o The New York
  Times Company

  	
   

  
	
  229 West 43rd
  Street

  	
   

  
	
  New York, New
  York 10036

  	
   

  
	
  Attn:  Mr. David A. Thurm

  	
   

  
	
   

  	
   

  
	
  With a copy to:

  	
   

  
	
   

  	
   

  
	
  NYT Real Estate
  Company LLC

  	
   

  
	
  c/o The New York
  Times Company

  	
   

  
	
  229 West 43rd
  Street

  	
   

  
	
  New York, New
  York  10036

  	
   

  
	
  Attn:   Solomon B. Watson, IV, Esq.

  	
   

  
	
   

  	
   

  
	
  With a copy to:

  	
   

  
	
   

  	
   

  
	
  Swidler Berlin
  Shereff Friedman, LLP

  	
   

  
	
  405 Lexington
  Avenue

  	
   

  
	
  New York, New
  York 10174

  	
   

  
	
  Attn:  Martin D. Polevoy, Esq.

  	
   

  
	
   

  	
   

  
	
  If to FC Member:

  	
   

  
	
   

  	
   

  
	
  FC Lion LLC

  	
   

  
	
  One MetroTech
  Center North

  	
   

  
	
  Brooklyn, New
  York 11201

  	
   

  
	
  Attn:  General Counsel

  	
   

  
	
   

  	
   

  
	
  and

  	
   

  
	
   

  	
   

  
	
  Kelley Drye
  & Warren LLP

  	
   

  
	
  101 Park Avenue

  	
   

  
	
  New York, New
  York  10178

  	
   

  
	
  Attn:  James J. Kirk, Esq.

  	
   

  

 

Any party hereto may
designate a different address to which or Person to whom notices or demands
shall be directed by written notice given in the same manner and directed to
the each other Member at its address hereinabove set forth.  Any notice given hereunder shall be deemed

 

70

 

received one (1) Business
Day after delivery to an overnight delivery service, designated for next-day
delivery; three (3) Business Days after mailing if sent by registered U.S.
mail, return receipt requested; or when actually received if sent in any other
permissible fashion.

 

14.03                     Amendments.  This Agreement may not be amended, restated,
supplemented or otherwise modified except by a writing signed by all of the
Members.

 

14.04                     Articles of Organization.  From time to time, the Members shall sign
and acknowledge all such writings as are required to amend the Articles of
Organization or for the carrying out of the terms of this Agreement or, upon
dissolution of the Company, to cancel such Articles.

 

14.05                     Validity.  In
the event that any provision of this Agreement shall be held to be invalid,
such invalidity shall not affect in any respect whatsoever the validity of the
remainder of this Agreement.

 

14.06                     Governing Law.  This Agreement shall be construed according
to and governed by the laws of the State of New York.

 

14.07                     Waiver.  The
waiver by any party hereto of the breach of any term, covenant, agreement or
condition herein contained shall not be deemed a waiver of any subsequent
breach of the same or any other term, covenant, agreement or condition herein,
nor shall any custom, practice or course of dealings arising among the parties
hereto in the administration hereof be construed as a waiver or diminution of
the right of any party hereto to insist upon the strict performance by any
other party of the terms, covenants, agreements and conditions herein
contained.

 

14.08                     Brokers.  FC
Member and NYTC Member each represents and warrants to the other that it  has had no dealings or communications with
any broker, finder, or consultant with respect to the Property or the Project
except for the Broker.  FC Member shall
hold NYTC Member harmless and defend NYTC Member with respect to any claims or
actions that may be brought by any broker or finder (other than the Broker)
with whom it has dealt with respect to the Property or the Project.  NYTC Member shall hold FC Member harmless
and defend FC Member with respect to any claims or actions that may be brought
by any broker or finder (including, without limitation, the Broker) with whom
it has dealt with respect to the Property or the Project, subject however to
the obligations of the Company and FC Member pursuant to
Section 3.01(e).  The provisions of
this Section 14.08 shall survive the termination of this Agreement and the
dissolution of the Company.

 

14.09                     Entire Agreement.  This Agreement, together with any other
document executed contemporaneously herewith, sets forth the entire agreement
and understanding of the Member with respect to the Project and the subject
matter hereof and supersedes all prior agreements or understandings relating
thereto.

 

14.10                     No Third Party Beneficiary.  Nothing contained in this Agreement shall be
deemed to create any third party beneficiary status or grant any rights to any
capital contributions to any party which is not a Member.

 

71

 

14.11                     Attorney’s Fees.  In the event of litigation to enforce or
interpret this Agreement, the prevailing party(ies) in such litigation shall be
entitled to recover from the losing party(ies) its or their reasonable
attorney’s fees and costs incurred in such litigation, including such costs and
fees on appeal.

 

14.12                     No
Cross-Default. 
Notwithstanding any other provision of this Agreement to the contrary,
no default by FCE or Developer or any of their Affiliates under the Development
Agreement or any guaranty or any other document relating to the Project shall
constitute a default by FC Member under this Agreement.

 

14.13                     Certificated
Interests.  The Company
hereby irrevocably elects that all membership interests in the Company shall be
securities governed by Article 8 of the Uniform Commercial Code.  Each certificate evidencing membership
interests in the Company shall bear the following legend:  “This certificate evidences an interest in
The New York Times Building LLC and shall be a security for purposes of
Article 8 of the Uniform Commercial Code.”  This provision shall not be amended, and no such purported
amendment to this provision, shall be effective until all outstanding
certificates have been surrendered for cancellation.

 

[the remainder of this page is intentionally blank]

 

72

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement as of
the day and year first above written.

 

	
   

  	
  FC LION LLC, a New York limited liability

  company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  FC 41st Street Associates, LLC, a New

  York limited liability company, its

  managing member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  RRG 8 South, Inc., a New York

  corporation, its managing member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Bruce C. Ratner

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Bruce C. Ratner

  
	
   

  	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NYT REAL ESTATE COMPANY LLC, a New

  York limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Michael Golden

  	
   

  
	
   

  	
   

  	
  Name: Michael Golden

  
	
   

  	
   

  	
  Title: Manager

  
							

 

73

EXHIBIT A

 

Description of the Land

 

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

 

Beginning at the corner
formed by the intersection of the northerly line of West 40th Street
with the easterly
line of 8th Avenue.

 

Running thence
northerly along said easterly line of 8th Avenue, 197 feet 6 inches
to the corner formed by the intersection of the easterly side of 8th
Avenue with the southerly line of West 41st Street;

 

Thence
easterly along said southerly line of West 41st Street, 400 feet;

 

Thence southerly and parallel to said easterly line of 8th
Avenue, 197 feet 6 inches to the northerly line of West 40th Street;

 

Thence westerly
along said northerly line of West 40th Street, 400 feet to the point
and place of Beginning.

 

Being premises known as and by Manhattan Tax Map Block 1012, Lots 1, 5,
8, 14, 53, 59, 61, 62, 63, and part of Lot 15.

 

A-1

EXHIBIT B

 

Development Plan

 

The Members intend to construct upon the Land an office building (with
ground floor retail) of approximately 1,440,000 gross square feet of above
grade space, additional below grade space and additional roof top and
mechanical space, which building shall include the “SPU”, “NYTC Office”, “FC
Retail”, “FC Office” and “Common Areas”, all as generally shown on the drawings
attached hereto as Exhibit B-l.

 

B-1

 

 

EXHIBIT
B-1

Floor Plans

 

B-1-1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXHIBIT C

 

Schematic Design Plans

 

C-1

 

List
of Schematic Design Documents

That
Correspond with Final Schematic

Design
Budget dated July 30, 2001

 

	
  A 1000

  	
   

  	
  7/20/2001

  	
   

  	
  S 0001

  	
   

  	
  7/20/2001

  
	
  A 1001

  	
   

  	
  7/20/2001

  	
   

  	
  S 1000

  	
   

  	
  7/20/2001

  
	
  A 1002

  	
   

  	
  7/20/2001

  	
   

  	
  S 1001

  	
   

  	
  7/20/2001

  
	
  A 1003

  	
   

  	
  7/20/2001

  	
   

  	
  S 1003

  	
   

  	
  7/20/2001

  
	
  A 1004

  	
   

  	
  7/20/2001

  	
   

  	
  S 1006

  	
   

  	
  7/20/2001

  
	
  A 1005

  	
   

  	
  7/20/2001

  	
   

  	
  S 1008

  	
   

  	
  7/20/2001

  
	
  A 1006

  	
   

  	
  7/20/2001

  	
   

  	
  S 1011

  	
   

  	
  7/20/2001

  
	
  A 1008

  	
   

  	
  7/20/2001

  	
   

  	
  S 1021

  	
   

  	
  7/20/2001

  
	
  A 1010

  	
   

  	
  7/20/2001

  	
   

  	
  S 1027

  	
   

  	
  7/20/2001

  
	
  A 1011

  	
   

  	
  7/20/2001

  	
   

  	
  S 1030

  	
   

  	
  7/20/2001

  
	
  A 1021

  	
   

  	
  7/20/2001

  	
   

  	
  S 1041

  	
   

  	
  7/20/2001

  
	
  A 1027

  	
   

  	
  7/20/2001

  	
   

  	
  S 1052

  	
   

  	
  7/20/2001

  
	
  A 1030

  	
   

  	
  7/20/2001

  	
   

  	
  S 1052MEZ

  	
   

  	
  7/20/2001

  
	
  A 1041

  	
   

  	
  7/20/2001

  	
   

  	
  S 1053

  	
   

  	
  7/20/2001

  
	
  A 1052

  	
   

  	
  7/20/2001

  	
   

  	
  S 1054

  	
   

  	
  7/20/2001

  
	
  A 1052MEZ

  	
   

  	
  7/20/2001

  	
   

  	
  S 2000

  	
   

  	
  7/20/2001

  
	
  A 1053

  	
   

  	
  7/20/2001

  	
   

  	
  S 2001

  	
   

  	
  7/20/2001

  
	
  A 1054

  	
   

  	
  7/20/2001

  	
   

  	
  S 2002

  	
   

  	
  7/20/2001

  
	
  A 1056

  	
   

  	
  7/20/2001

  	
   

  	
   

  	
   

  	
   

  
	
  A 1101

  	
   

  	
  7/20/2001

  	
   

  	
  M 1000

  	
   

  	
  9/18/2001

  
	
  A 1102

  	
   

  	
  7/20/2001

  	
   

  	
  M 1001

  	
   

  	
  9/18/2001

  
	
  A 1103

  	
   

  	
  7/20/2001

  	
   

  	
  M 1005

  	
   

  	
  9/18/2001

  
	
  A 2001

  	
   

  	
  7/20/2001

  	
   

  	
  M 1006

  	
   

  	
  9/18/2001

  
	
  A 2101

  	
   

  	
  7/20/2001

  	
   

  	
  M 1021

  	
   

  	
  9/18/2001

  
	
  A 2102

  	
   

  	
  7/20/2001

  	
   

  	
  M 1027

  	
   

  	
  9/18/2001

  
	
  A 2103

  	
   

  	
  7/20/2001

  	
   

  	
  M 1027M

  	
   

  	
  9/18/2001

  
	
  A 2104

  	
   

  	
  7/20/2001

  	
   

  	
  M 1041

  	
   

  	
  9/18/2001

  
	
  A 3001a

  	
   

  	
  7/20/2001

  	
   

  	
  M 1052

  	
   

  	
  9/18/2001

  
	
  A 3001b

  	
   

  	
  7/20/2001

  	
   

  	
  M 1052MEZ

  	
   

  	
  9/18/2001

  
	
  A 3002

  	
   

  	
  7/20/2001

  	
   

  	
  M 1054

  	
   

  	
  9/18/2001

  
	
  A 3002b

  	
   

  	
  7/20/2001

  	
   

  	
  M 5000

  	
   

  	
  9/18/2001

  
	
  A 4020

  	
   

  	
  7/20/2001

  	
   

  	
  M 5001

  	
   

  	
  9/18/2001

  
	
  A 4021

  	
   

  	
  7/20/2001

  	
   

  	
  M 5002

  	
   

  	
  9/18/2001

  
	
  A 4038

  	
   

  	
  7/20/2001

  	
   

  	
  M 5003

  	
   

  	
  9/18/2001

  
	
  A 4039

  	
   

  	
  7/20/2001

  	
   

  	
  M 5004

  	
   

  	
  9/18/2001

  
	
  A 4040

  	
   

  	
  7/20/2001

  	
   

  	
  M 5005

  	
   

  	
  9/18/2001

  
	
  A 4041a

  	
   

  	
  7/20/2001

  	
   

  	
  M 5006

  	
   

  	
  9/18/2001

  
	
  A 4041b

  	
   

  	
  7/20/2001

  	
   

  	
  M 5007

  	
   

  	
  9/18/2001

  
	
  A 4042

  	
   

  	
  7/20/2001

  	
   

  	
  M 5008

  	
   

  	
  9/18/2001

  
	
   

  	
   

  	
   

  	
   

  	
  M 5009

  	
   

  	
  9/18/2001

  
	
   

  	
   

  	
   

  	
   

  	
  M 5010

  	
   

  	
  9/18/2001

  
	
   

  	
   

  	
   

  	
   

  	
  M 5011

  	
   

  	
  9/18/2001

  

 

 

List
of Schematic Design Documents

That
Correspond with Final Schematic

Design
Budget dated July 30, 2001

 

	
  P 0000

  	
  9/18/2001

  	
  E 0000

  	
  9/18/2001

  
	
  P
  1000

  	
  9/18/2001

  	
  E 1001

  	
  9/18/2001

  
	
  P
  1004

  	
  9/18/2001

  	
  E 1004

  	
  9/18/2001

  
	
  P
  1008

  	
  9/18/2001

  	
  E 1006

  	
  9/18/2001

  
	
  P
  1021

  	
  9/18/2001

  	
  E 1021

  	
  9/18/2001

  
	
  P
  1027

  	
  9/18/2001

  	
  E 1027

  	
  9/18/2001

  
	
  P
  1030

  	
  9/18/2001

  	
  E 1027M

  	
  9/18/2001

  
	
  P
  1040

  	
  9/18/2001

  	
  E 1052

  	
  9/18/2001

  
	
  P
  1052

  	
  9/18/2001

  	
  E 1052MEZ

  	
  9/18/2001

  
	
  P 5000

  	
  9/18/2001

  	
  E 1041

  	
  9/18/2001

  
	
  P
  5001

  	
  9/18/2001

  	
  E 1054

  	
  9/18/2001

  
	
  P 5002

  	
  9/18/2001

  	
  E 4000

  	
  9/18/2001

  
	
  P 5003

  	
  9/18/2001

  	
  E 5000

  	
  9/18/2001

  
	
   

  	
   

  	
   

  	
   

  
	
  FP 0000

  	
  9/18/2001

  	
  T 0000

  	
  9/18/2001

  
	
  FP 1000

  	
  9/18/2001

  	
  T 1000

  	
  9/18/2001

  
	
  FP 1004

  	
  9/18/2001

  	
  T 1003

  	
  9/18/2001

  
	
  FP 1008

  	
  9/18/2001

  	
  T 1008

  	
  9/18/2001

  
	
  FP 1021

  	
  9/18/2001

  	
  T 5000

  	
  9/18/2001

  
	
  FP 1027

  	
  9/18/2001

  	
  T 5001

  	
  9/18/2001

  
	
  FP 1030

  	
  9/18/2001

  	
   

  	
   

  
	
  FP 1040

  	
  9/18/2001

  	
   

  	
   

  
	
  FP 1052

  	
  9/18/2001

  	
   

  	
   

  
	
  FP 5001

  	
  9/18/2001

  	
   

  	
   

  

 

	
  Schematic Design Outline Specifications

  	
  7/20/2001

  

 

EXHIBIT D

 

Schematic Design Estimate

 

D-1

 

The attached Schematic Design Estimate reflects the gross costs of the
Development. The costs reflected will be reallocated to the Members pursuant
Article 3 and Section 12.01(b) of the Operating Agreement.

 

 

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PROJECT NAME:

  	
   

  	
  The New York Times Building

  	
   

  	
  Date:

  	
   

  	
  July 30, 2001

  
	
  LOCATION:

  	
   

  	
  New York, NY

  	
   

  	
  File:

  	
   

  	
   

  
	
  CLIENT NAME:

  	
   

  	
  The New York Times/FCRC

  	
   

  	
  Job
  #:

  	
   

  	
  -

  	
   

  
	
  ARCHITECT:

  	
   

  	
  Renzo Piano Building
  Workshop/Fox and Fowle Architects

  	
   

  	
  Est.
  #:

  	
   

  	
  -

  	
   

  
	
  ESTIMATE TYPE:

  	
   

  	
  0

  	
   

  	
  S.F.:

  	
   

  	
  1,553,966.00

  	
   

  
	
  EST. PHASE:

  	
   

  	
  Schematic

  	
   

  	
   

  	
   

  	
   

  
									

 

	
  TRADE SUMMARY

  	
   

  	
  AMOUNT ($)

  	
   

  	
  $/SF

  	
   

  	
  %

  	
   

  
	
  NYT

  	
   

  	
  FCRC

  	
   

  	
  Retail

  	
   

  	
  SPU

  	
   

  	
  TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02000 DEMOLITION

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  02100 ASBESTOS REMOVAL

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  02200 SITEWORK

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  03200 SUBSTRUCTURE

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  03300 SUPERSTRUCTURE CONCRETE

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  04200 MASONRY

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  04400 STONE

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  05100 STRUCTURAL STEEL

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  05300 METAL DECK

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  05500 MISCELLANEOUS METALS

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  05700 ORNAMENTAL METALS

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  06100 ROUGH CARPENTRY

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  06200 FINISH CARPENTRY/MILLWORK

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  07100 WATERPROOFING

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  07200 INSULATION

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  07240 EIFS

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  07250 SPRAY-ON-FIREPROOFING

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  07400 METAL PANELS

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  07500 MEMBRANE ROOFING

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  07900 CAULKING

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  08100 METAL DOORS AND FRAMES

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  08300 OVERHEAD DOORS

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  08400 ENTRANCES AND STOREFRONTS

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  08700 HARDWARE

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  08800 GLAZING

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  08900 CURTAINWALL

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  09250 GYPSUM WALLBOARD

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  09300 TILE

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  09500 ACOUSTICAL CEILING TILE

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  09650 RESILIENT FLOORING AND CARPET

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  09660 SPECIAL FINISHES

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  09900 PAINTING

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  10000 SPECIALTIES

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  10200 LOUVERS

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  10250 ACCESS FLOOR

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  10400 BUILDING SIGNAGE

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  10532 CANOPIES

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  12500 WINDOW WASHING EQUIPMENT

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  13100 MAST

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  13200 DAMPER

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  14100 CONVEYANCES

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  14200 TURNTABLE

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  15100 HVAC

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  15200 PLUMBING

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  15300 FIRE PROTECTION

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  16000 ELECTRICAL

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  SUBWAY ENTRANCE

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TRADE SUB - TOTAL:

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXTERIOR PROJECTION SIGNAGE EQUIPMENT

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBWAY ENTRANCE WORK

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NYTC TENANT WORK (Allocations)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Communicating Stairs

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  
	
  2. Fin Tube Heating System

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  
	
  3. Newsroom Skylight

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TRADE SUBTOTALS =

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  292,968,428

  	
   

  	
  188.53

  	
   

  	
   

  	
   

  

 

EXHIBIT E

 

Form of Condominium Declaration

 

See
Item 76 – Declaration of Leasehold Condominium.

 

 

C-1

 

EXHIBIT
F

 

Definition
of the Core and Shell

 

F-1

 

Definition of the Core and Shell

 

I.                                         GENERAL CONSTRUCTION

 

	
   

  	
  •

  	
  Demolition/Asbestos Abatement

  
	
   

  	
  •

  	
  Foundations

  
	
   

  	
  •

  	
  Excavation including basement excavation

  
	
   

  	
  •

  	
  Site Work

  
	
   

  	
  •

  	
  Landscaping, irrigation and drainage

  
	
   

  	
  •

  	
  Superstructure, complete structural frame providing a
  minimum of 50 lbs./ft2 of live load capacity

  
	
   

  	
  •

  	
  Fire Stairs including enclosure

  
	
   

  	
  •

  	
  Metal deck and concrete slabs

  
	
   

  	
  •

  	
  Roofing/Waterproofing/Paving/Roof Garden

  
	
   

  	
  •

  	
  Fireproofing

  
	
   

  	
  •

  	
  Curtain Wall system – Entire building enclosure.

  
	
   

  	
  •

  	
  Doors and Hardware for exterior and interior core and
  shell elements.

  
	
   

  	
  •

  	
  Storefronts, Entrance Doors and Screens

  
	
   

  	
  •

  	
  Demising partitions for MEP service rooms, shafts, ground
  floor lobbies, fire stairs, core area, shafts and toilet rooms.

  
	
   

  	
   

  	
  Finishes for the following areas:

  
	
   

  	
   

  	
   

  	
  1.

  	
  Ground floor common area lobby.

  
	
   

  	
   

  	
   

  	
  2.

  	
  Core Area Toilet rooms and additional toilet rooms on
  podium floors.

  
	
   

  	
   

  	
   

  	
  3.

  	
  Common Corridors/Stairwells

  
	
   

  	
   

  	
   

  	
  4.

  	
  MEP and Elevator equipment rooms

  
	
   

  	
   

  	
   

  	
  5.

  	
  Loading dock areas and common support areas

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  •

  	
  Interior signage program to meet code requirements.

  
	
   

  	
  •

  	
  Building Identification Signage

  
	
   

  	
  •

  	
  Window washing equipment

  
	
   

  	
  •

  	
  Elevators including Shaftways

  

 

II.                                     SUBWAY ENTRANCE

 

•               Subway Entrance Improvements
Including the following:

1.                Construction of a new entrance
within property limits to be constructed at the northeast corner of Eighth
Avenue and 40th Street consisting of a 10 foot wide straight stairway with two
intermediate landings, which connects to the mezzanine located below the east
sidewalk of Eighth Avenue.

2.                A street vestibule, at the top
of the stairway that is within the building property, with minimum dimensions
of 15 feet long by 10 feet wide.

3.                Partial demolition and slabbing
over of the existing sidewalk stair entrance at the northeast corner of Eighth
Avenue and 40th Street as required to construct the above items. Modifications
to the existing intermediate stair landing as required to seal the original
entrance to stairway and create an entry to the proposed stairway.

4.                Protection of all street
utilities impacted by the construction of the above items during Owner’s
construction.

5.                The
removal of the existing cast iron stair entrance railings, gates, and entrance lamp posts
and delivery thereof to an Authority facility located within the City of New
York, as designated by the Authority.

 

 

III.                                 PLUMBING

 

Domestic cold water distribution system
from tap in street to valved outlets at each floor with capacity for floor
pantries.

Domestic hot water distribution to
valved outles at each floor with capacity for floor pantries.

Complete storm water system with
necessary sump pumps.

Sanitary waste system from city tie-in
to plugged outlets at each floor, sized to accommodate NYTC cafeteria complete
with all necessary ejector pumps.

Meters for consumption of energy, other
than for base building HVAC equipment, to be installed by individual users.

In addition to the distribution system
described above, core area bathrooms (including drinking fountains) will be
built as part of the base building work including all fixtures. No other
bathrooms remote from the core area will be built as part of the base building
work except on the podium floors where additional bathrooms for general use
will be provided.

Provision of two (2) additional dry
columns with waste and vent risers remote from the core on tower floors and
four (4) dry columns with waste and vent risers on podium floors. Each podium
floor will include a remote wet column riser.

All domestic cold water piping in
conditioned spaces and areas subject to freezing will be insulated.

 

IV.                                 FIRE SPRINKLER SYSTEM

 

1. Fire protection water service as
required by code including any necessary pumps and ATS equipment.

2. Complete standpipe system with hose
outlets based on open plan floor

3. Sprinkler floor control valves with
tamper switch and flow switch, including service double detector check.

4. TCO sprinkler coverage (loop around
core and core rooms sprinklered)

5. Complete coverage including
sprinkler heads as required in ground floor lobbies, mechanical rooms, and
other common areas.

 

V.                                     HVAC

 

1)              Equipment sized on the following
criteria:

a)              Electric demand load: 2 w/ft2
lighting, 3 w/ft2 power, 2.0 w/ft2 supplementary cooling,
up to an additional 200 tons of cooling capacity for the NYTC Data Center if
not provided for within the 2.0 w/ft2 supplementary cooling
allowance.

b)             Ventilation: 20 cfm/person or,
0.2 cfm/ft2

c)              Occupancy: 100 ft2/person

d)             Outdoor conditions: summer
91/76°F, winter 5°F with 15 mph wind.

e)              Indoor conditions: summer 75°F
+/- 1°, 50% RH + 5% (uncontrolled), winter 72°F +/- 1°

 

2)                Central Plant will be designed
to allow for 24 hr per day 7 day per week 52 week per year operation.

 

3)                Complete Refrigeration Plant
including

a)              Refrigeration machines with a
capacity to satisfy the cooling load. Redundant machines are not provided.
Multiple chillers (4 or more) are required.

b)             Cooling towers with a capacity
to satisfy cooling load (summer and winter as required by the New York State
Energy Code.) Redundant cells are not provided.

c)              Condenser
water and chilled water pumps to satisfy cooling load. One redundant chilled
water and condenser water pump of each size is provided.

 

2

 

d)             Free cooling plate and frame
plate exchangers to provide 100% of cooling requirements as required by the New
York State energy code. Redundant plate and frame heat exchangers are not
provided.

e)              Chilled water and condenser
water piping within the central plant, connecting cooling towers and a set of
risers through the building piped to typical floor air handling units.

f)                Valved outlets (21/2”) on the condenser water and
the chilled water risers for connection to by Owner/Tenant as required for
supplementary cooling.

 

4)              Complete
heating plant including:

a)              High Pressure Con Ed Steam
Service.

b)             Complete steam heating system as
designed by Flack and Kurtz and approved by NYTC and FCRC.

 

5)              Typical Floor Mechanical Rooms
consisting of:

a)              Air handling unit(s) with
capacity to offset electric, occupancy, envelope and outside air loads. The
unit will be provided with cooling coils, fan, medium efficiency filters 35%
Eff’s/85% Eff’s, smoke detectors, variable speed drive and controls for the
operation of the unit.

b)             Heated ventilation air with
automatic control damper.

c)              Smoke exhaust either using a
dedicated riser or the outside air shaft capable of exhausting each office
floor one at a time at a rate of 6 air changes per hour.

d)             Medium pressure ductwork from
the air handling unit to the outside face of the core wall.

e)              Return air transfer plenum
(within the typical floor mechanical room) to a location on the exterior wall
surface of the mechanical room wall which will be above the tenant provided
hung ceiling.

 

6)              Perimeter heating system
consisting of:

a)              Perimeter hot water risers.

 

7)              Outside air ventilation system
consisting of:

a)              Air handing units with medium
efficiency filters, fans, heating coils, cooling coils and variable speed
drives.

b)             Ductwork from units to outside
air shafts.

c)              Controls including valves,
sensors, controllers and dampers.

d)             Air monitoring system to monitor
carbon dioxide levels in occupied spaces.

 

8)              General
Exhaust system with capacity to exhaust 1500 cfm per floor with stub outs on
each floor with fire and smoke dampers as required by code.

 

9)              Toilet exhaust systems with a
capacity of 2 cfm/sf with 10% spare capacity.

 

10)        Emergency
power system for Base Building Life Safety Systems consisting of:

a)              Fuel oil system with a capacity
of 6 hours of fuel to operate the generator(s) at full load.

b)             Exhaust system consisting of
exhaust piping and silencers.

c)              Ventilation and exhaust air as
required to operate the generator.

 

11)        Building
control system consisting of:

a)              Main processing unit.

b)             Backbone distribution to a panel
within each floor typical floor mechanical room with capacity to control VAV
boxes (1 per 800-900 square feet), air handling units and dampers on each floor.

c)              Control of all base building
equipment such as outside air systems, boilers, chillers and toilet exhaust
systems.

 

12)        Smoke management system
consisting of:

a)              Fans to provide a minimum of 6
air changes per hour for any two occupied floors area of the building.

b)             Ductwork from the fans to the
space served.

 

3

 

c)              Fire smoke dampers wired to the
fire command station for all fire zones included in the base building design.

 

13)        Complete HVAC systems for all
public spaces such as:

a)              Main lobby

b)             Back of house spaces

 

14)        Provide space to accommodate
user-specific mechanical or electrical equipment.

 

15)        Sound Attenuation design
criteria:

 

a) NC-35 in general areas and NC-40
within 10’ of mechanical rooms.

 

VI.                                 ELECTRICAL

 

Base building electrical service
consisting of a 460 volt service, transformers and associated vaults, network
protectors and main switchgear, including circuit breakers and fused disconnect
switches.

Main service electrical distribution to
each floor via buss ducts.

Provisions for three buss duct stabs
per duct into each buss duct.

Buss tap switches, transformers, and
branch circuit panel boards required to accommodate user needs, other than for
base building mechanical equipment, will not be installed as part of core and
shell work.   Provision of two
electrical closets per tower floor and three electrical closets per podium
floor with back boxes for cables.

Power distribution as required to
support the floor by floor mechanical equipment.

Emergency Power sufficient for life
safety functions as required by code including generators, automatic transfer
switches.

Space provisions for running
supplemental and standby power feeders through the building to selected floors.

Space and structural requirements to
accommodate the Owner/Tenants standby generators, UPS, and fuel oil storage
systems as may be required.

Lighting in all base building
mechanical rooms, lobbies, and emergency stairwells.

Exterior and Facade Lighting.

Facilities will be provided to allow
the distribution system to be increased for special user or tenant needs.

Attenuation will be provided for
RFI/EMI as required.

 

VII.                             FIRE ALARM SYSTEM

 

Class E Alarm System sufficient in size
to accommodate the point capacity of the entire building. All base building
devices installed as required by Code on all floors and in the common areas to
be provided as part of the base building core and shell.

 

VIII.                         SECURITY

 

Security for
base building envelope including perimeter surveillance. Space will be provided
to NYTC for purpose of installing dedicated security conduits in the core and
common areas including the loading dock area.

 

4

 

IX.                                TELECOMMUNICATIONS

 

Provision of four (4) service entry points.

Provision of two (2) main telecom
rooms.

Provide empty 4” conduits from point of
entry to individual telecom closets.

Two IDF closets will be provided for
each tower floor and three for each podium floor.

Provide 2- 4” conduit risers from the
lowest NYTC floor to roof.

Allow for space on roof to accommodate
NYTC communications satellite dishes.

 

 

 

EXHIBIT G

 

Examples of Calculations Under
Section 3.07(C)(b)(iii)

 

G-1

 

Example for 3.07 (C) (b)
FC Member’s Put-Right

 

	
   

  	
   

  	
   

  	
   

  	
  Example

  	
   

  	
   

  
	
  )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IF

  	
   

  	
  FC Member Contribution
  is <

  	
   

  	
  $

  	
  21,700,000

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THEN

  	
   

  	
  FC Member Pays NYTC
  Member

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (x)

  	
   

  	
  $

  	
  21,700,000

  	
   

  	
   

  
	
   

  	
   

  	
  -(y) FC Member Funded
  SACS

  	
   

  	
  $

  	
  (10,000,000

  	
  )

  	
  Note: This value is used for illustrative purposes
  only.

  
	
   

  	
   

  	
  FC Member Payment

  	
   

  	
  $

  	
  11,700,000

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  i)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IF

  	
   

  	
  FC Member Contribution
  is >

  	
   

  	
  $

  	
  21,700,000

  	
   

  	
   

  
	
  AND

  	
   

  	
  SAC Funded <

  	
   

  	
  $

  	
  84,940,000

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THEN

  	
   

  	
  NYTC Member pays FC
  Member

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (1) FC Member Funded
  SACS

  	
   

  	
  $

  	
  30,000,000

  	
   

  	
  Note: This value is used for illustrative purposes
  only.

  
	
   

  	
   

  	
  - (2)

  	
   

  	
  $

  	
  (21,700,000

  	
  )

  	
   

  
	
   

  	
   

  	
  FC Member Excess Land
  Payment

  	
   

  	
  $

  	
  8,300,000

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ii)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IF

  	
   

  	
  FC Member Contribution
  is >

  	
   

  	
  $

  	
  21,700,000

  	
   

  	
   

  
	
  AND

  	
   

  	
  SAC Funded >

  	
   

  	
  $

  	
  84,940,000

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Then (A)

  	
   

  	
  NYTC Member pays FC
  Member

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FC Member Funded SACS

  	
   

  	
  $

  	
  40,000,000

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  $

  	
  (21,700,000

  	
  )

  	
  Note: This value is used for illustrative purposes
  only.

  
	
   

  	
   

  	
  (1) FC Member Excess
  Land payment

  	
   

  	
  $

  	
  18,300,000

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (2) The FC Member ESAC
  Amount

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (x) FC Member ESAC
  Percentage (FC Member’s Land Share)

  	
   

  	
  45

  	
  %

  	
   

  
	
   

  	
   

  	
  x(y) Total ESAC Paid as
  of FC Put Closing Date

  	
   

  	
  $

  	
  3,948,889

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  $

  	
  1,777,000

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (1)

  	
   

  	
  $

  	
  18,300,000

  	
   

  	
   

  
	
   

  	
   

  	
  (2)

  	
   

  	
  $

  	
  (1,777,000

  	
  )

  	
   

  
	
   

  	
   

  	
  FC Member Excess Land Payment (net ESACS)

  	
   

  	
  $

  	
  16,523,000

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AND (B)

  	
   

  	
  NYTC Member Pays FC
  Member ESAC Credit

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FC Member ESAC at time
  received

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FC Member ESAC

  	
   

  	
  $

  	
  1,777,000

  	
   

  	
   

  
	
   

  	
   

  	
  Divided by Total ESAC

  	
   

  	
  $

  	
  5,000,000

  	
   

  	
  Note: This number is used for illustrative purposes
  only but would include all ESAC’s paid as of FC Put Closing Date plus all
  ESACS subsequently paid by NYTC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FC Member ESAC
  Percentage

  	
   

  	
  35.54

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total ESAC (if Total
  ESAC is < or = to 85% of PILOT for Year 1 then able to draw down total
  ESAC in Year 1; otherwise, FCR Member receives in this example 35.54% of
  total ESAC credits if, as and when received by NYTC)

  	
   

  	
  5,000,000

  	
   

  	
   

  
	
   

  	
   

  	
  xFC Member ESAC
  Percentage

  	
   

  	
  35.54

  	
  %

  	
   

  
	
   

  	
   

  	
  FC Member ESAC Payment

  	
   

  	
  $

  	
  1,777,000

  	
   

  	
   

  

 

 

 

EXHIBIT H

 

Total Costs of the Project

 

H-1

 

Exhibit H

 

Total Project Costs

 

	
   

  	
   

  	
  Description

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Description

  
	
  1

  	
   

  	
  SITE ACQUISITION:

  
	
  2

  	
   

  	
  Site Acquisition

  
	
  3

  	
   

  	
  20% LC

  
	
  4

  	
   

  	
  Broker Fee

  
	
  5

  	
   

  	
  Total Site Acquisition

  
	
  6

  	
   

  	
   

  
	
  7

  	
   

  	
  HARD COSTS:

  
	
  8

  	
   

  	
  Trades -Base Building

  
	
  9

  	
   

  	
  Trades - Subway

  
	
  10

  	
   

  	
  Pre-construction Services

  
	
  11

  	
   

  	
  Tenant Contributions/Interior Build Out

  
	
  12

  	
   

  	
  SPU (Base, FF&E and Finishes)

  
	
  13

  	
   

  	
  General Conditions / CM Fee

  
	
  14

  	
   

  	
  Off-Site Work

  
	
  15

  	
   

  	
  Demolition/Environmental

  
	
  16

  	
   

  	
  Permits

  
	
  17

  	
   

  	
  Bonds

  
	
  18

  	
   

  	
  Owner’s Testing/Survey

  
	
  19

  	
   

  	
  Construction Contingency

  
	
  20

  	
   

  	
  Design/Scope Contingency

  
	
  21

  	
   

  	
  Total Hard Costs

  
	
  22

  	
   

  	
   

  
	
  23

  	
   

  	
  SOFT COSTS:

  
	
  24

  	
   

  	
  A & E Base

  
	
  25

  	
   

  	
  A & E Reimburseables

  
	
  26

  	
   

  	
  A & E - Consultants/Web/Compel.

  
	
  27

  	
   

  	
  Architecture & Engineering

  
	
  28

  	
   

  	
   

  
	
  29

  	
   

  	
  Internal Incentives

  
	
  30

  	
   

  	
  External Commissions

  
	
  31

  	
   

  	
  Leasing Commissions

  
	
  32

  	
   

  	
   

  
	
  33

  	
   

  	
  Legal - General

  
	
  34

  	
   

  	
  Legal - Leasing

  
	
  35

  	
   

  	
  Legal - Financing

  
	
  36

  	
   

  	
  Legal - Zoning

  
	
  37

  	
   

  	
  Legal - Acquisitions

  
	
  38

  	
   

  	
  Legal

  
	
  39

  	
   

  	
   

  
	
  40

  	
   

  	
  Construction Interest

  
	
  41

  	
   

  	
  Financing/Advisor Fees

  
	
  42

  	
   

  	
  Financing Fees & Out-of-Pocket Bank Expenses

  
	
  43

  	
   

  	
  Hedging Fee

  
	
  44

  	
   

  	
  FCE Finance Fee

  
	
  45

  	
   

  	
  ING Inspection Fee

  
	
  46

  	
   

  	
  Transfer Tax

  
	
  47

  	
   

  	
  Title Insurance Fee

  
	
  48

  	
   

  	
  Bank Inspection

  
	
  49

  	
   

  	
  Financing

  
	
  50

  	
   

  	
   

  
	
  51

  	
   

  	
  Site Management

  
	
  52

  	
   

  	
  Project Expenses

  
	
  53

  	
   

  	
  Other Costs

  
	
  54

  	
   

  	
  Public Process

  
	
  55

  	
   

  	
  Signage/Art

  
	
  56

  	
   

  	
  Marketing/Public Relations/Project Expenses

  
	
  57

  	
   

  	
  Masterplanning

  
	
  58

  	
   

  	
  RE Taxes

  
	
  59

  	
   

  	
  Insurance

  
	
  60

  	
   

  	
  Other Costs

  
	
  61

  	
   

  	
   

  
	
  62

  	
   

  	
  TOTAL SOFT COSTS

  
	
  63

  	
   

  	
   

  
	
  64

  	
   

  	
  Sub-Total Project Costs

  
	
  65

  	
   

  	
   

  
	
  66

  	
   

  	
  Rent Up Deficit

  
	
  67

  	
   

  	
  Development Contingency

  
	
  68

  	
   

  	
  ING Site Management Fee

  
	
  69

  	
   

  	
  Development/Developer Fee

  
	
  70

  	
   

  	
  TOTAL PROJECT COSTS

  

 

 

 

EXHIBIT
I

 

Development Costs

 

I-1

 

FC
Member Initial Capital Contribution

 

New
York Times

Print Date: 12/10/01

Data Date: 11/08/01

 

	
   

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  4

  (1+2)

  	
   

  	
  5

  	
   

  	
  6

  (4+5)

  	
   

  
	
   

  	
   

  	
  Total FC
  Member

  Capital Contribution

  to the Company

  Total Costs

  Incurred

  	
   

  	
  Total
  Incurred

  Shared Costs of FC

  Member + NYTC

  Member

  	
   

  	
   

  	
   

  	
  NYTC Member

  Share of Incurred

  Shared Costs of 

  FC Member +

  NYTC Member

  	
   

  	
  NYTC Member

  Only Incurred

  Costs

  	
   

  	
  NYTC Member

  Share of Total

  Incurred Costs

  	
   

  
	
  As Of Date : 10/31/01

  	
   

  	
  As Of Date:

  10/31/01

  	
   

  	
  As Of Date:
  10/31/01

  	
   

  	
  NYTC %

  	
   

  	
  As Of Date:

  10/31/01

  	
   

  	
  As Of Date:

  10/31/01

  	
   

  	
  As Of Date:

  10/31/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
  Acquisition

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
  [*]

  	
  1

  
	
  2

  	
  TOTAL SITE ACQUISITION

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
  [*]

  	
  2

  
	
  3

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  3

  
	
  4

  	
  Traders: Base Building

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  4

  
	
  5

  	
  Tenant Contributions

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  5

  
	
  6

  	
  SPU Contribution

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  6

  
	
  7

  	
  Trades – Subway

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  7

  
	
  8

  	
  Pre-Construction Services

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
  [*]

  	
  8

  
	
  9

  	
  General Conditions/CM Fee

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  9

  
	
  10

  	
  Demolition Environmental

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  10

  
	
  11

  	
  Permits

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  11

  
	
  12

  	
  Bonds

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  12

  
	
  13

  	
  Owner’s Testing / Survey

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
  [*]

  	
  13

  
	
  14

  	
  Construction Contingency

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  14

  
	
  15

  	
  Design/Scope Contingency

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  15

  
	
  16

  	
  TOTAL HARD COSTS

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
  [*]

  	
  16

  
	
  17

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  17

  
	
  18

  	
  A & E Base

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
  [*]

  	
  18

  
	
  19

  	
  A & E Reimburseables

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
  19

  
	
  20

  	
  A & E Consultants

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
  20

  
	
  21

  	
  ARCHITECTURE & ENGINEERING

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
  21

  
	
  24

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  24

  
	
  25

  	
  LEASING COMMISSIONS

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  25

  
	
  26

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  26

  
	
  27

  	
  Legal – Ground Lse/Acqst/Tax Str.

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
  [*]

  	
  27

  
	
  28

  	
  Legal – Partnership & Develop
  Agreement

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  28

  
	
  29

  	
  Legal – Financing/Condo

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  29

  
	
  30

  	
  Legal – Leasing Office & Retail

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  30

  
	
  31

  	
  LEGAL

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
  [*]

  	
  31

  
	
  32

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  32

  
	
  33

  	
  Construction Interest

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  33

  
	
  34

  	
  Financing Fees & Out-of Pocket

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  34

  
	
  35

  	
  Mortgage Recording Tax

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  35

  
	
  36

  	
  Transfer Tax

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  36

  
	
  37

  	
  Title Insurance Fee

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  37

  
	
  38

  	
  Bank Inspection/Appraisal

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  38

  
	
  39

  	
  TOTAL FINANCING

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  39

  
	
  40

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  40

  
	
  41

  	
  Site Management

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  41

  
	
  42

  	
  Marketing/Public Relations

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
  [*]

  	
  42

  
	
  43

  	
  Project Expenses

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  43

  
	
  44

  	
  Signange / Art

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  44

  
	
  45

  	
  Public Process

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  45

  
	
  46

  	
  RE Taxes

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  46

  
	
  47

  	
  Sunk Costs

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  47

  
	
  48

  	
  Insurance

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
  [*]

  	
  48

  
	
  49

  	
  TOTAL OTHER COSTS:

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
  [*]

  	
  49

  
	
  50

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  50

  
	
  51

  	
  TOTAL SOFT COSTS

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
  51

  
	
  52

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  52

  
	
  53

  	
  SUB-TOTAL PROJECT COSTS

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
  53

  
	
  54

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  54

  
	
  55

  	
  ING Fee

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  55

  
	
  56

  	
  Development Contingency

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  56

  
	
  57

  	
  Development Costs

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
  57

  
	
  58

  	
  TOTAL PROJECT COST

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
  58

  
	
  59

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  59

  
	
  60

  	
  Recovery NYTC Sunk Costs

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  60

  
	
  61

  	
  Developer Management Fee

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  61

  
	
  62

  	
  Recovery of ESACS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  62

  
	
  63

  	
  State Sales Tax Deduction

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  63

  
	
  64

  	
  Rent Up Deficit

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  64

  
	
  65

  	
  Signage Income During Construction

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  65

  
	
  66

  	
  NET PROJECT COST

  	
   

  	
  14,814,297

  	
   

  	
  6,834,186

  	
   

  	
   

  	
   

  	
  3,959,438

  	
   

  	
  21,700

  	
   

  	
  3,981,138

  	
  —

  

*** NOTE: Cost incurred does not include interest payable by NYTC
Member to FC Member

 

EXHIBIT J

 

Work Authorization

 

L-1

 

NEW YORK TIMES
PROJECT

WORK AUTHORIZATION

 

	
   

  	
  06-Dec-01

  
	
   

  	
  09:41 PM

  

 

	
  Requested By:

  	
  Forest City Ratner Companies

  	
   

  	
   

  	
  W.A. #:

  	
   

  	 

	
   

  	 

	
  Vendor:

  	
   

  	
   

  	
   

  	
  Date:

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  Budget Line Item/

  	 

	
  Cost Code:

  	
   

  	
   

  	 

	
   

  	 

	
   

  	 

	
   

  	 

	
  Type of Agreement:

  	
   

  	
  o

  	
  Hourly as per attached sheet

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  o

  	
  Lump Sum

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  o

  	
  Not to Exceed

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  o

  	
  Other

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  Total Budget Allowance

  	
   

  	
   

  	
   

  	
   

  	
  Duration:

  	
  Start Date:

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  Previous Work Authorizations

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Completion Date:

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  Amt. of this Work Authorization

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  Revised Work Authorizations

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  Remaining Budget Available

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  Cost Allocation:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  NYT Real Estate Company LLC

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
  Confidentiality Form:

  	
  Signed:

  	
   

  	 

	
  FC Lion LLC

  	
   

  	
   

  	
   

  	
   

  	
  Attached:

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  NYT Real Estate/FC Lion

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  Special Purpose Use Cost

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	 

	
   

  	 

	
  Recommendation:

  	 

	
   

  	 

	
   

  	 

	
   

  	 

	
   

  	 

	
  Action:

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NYT Real Estate Company LLC

  	
   

  	
   

  	
  Date

  	
  FC Lion LLC

  	
  Date

  
																				

 

 

 

EXHIBIT
K

 

True-Up Schedule

 

 

 

Exhibit K

 

	
  NYTC
  Member

  	
   

  	
  FC Member

  	
   

  	
  Totals

  	
   

  
	
  Land

  Share

  	
   

  	
  Funding

  Share

  	
   

  	
  TP $

  	
   

  	
  Land

  Share

  	
   

  	
  Funding

  Share

  	
   

  	
  TP $

  	
   

  	
  Land

  Share

  	
   

  	
  Funding

  Share

  	
   

  	
  Trans

  Price

  	
   

  
	
  43.75

  	
  %

  	
  19.56

  	
  %

  	
  $

  	
  16,733

  	
   

  	
  56.25

  	
  %

  	
  80.44

  	
  %

  	
  $

  	
  68,828

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  44.10

  	
  %

  	
  20.17

  	
  %

  	
  $

  	
  17,260

  	
   

  	
  55.90

  	
  %

  	
  79.83

  	
  %

  	
  $

  	
  68,300

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  44.44

  	
  %

  	
  20.79

  	
  %

  	
  $

  	
  17,787

  	
   

  	
  55.56

  	
  %

  	
  79.21

  	
  %

  	
  $

  	
  67,773

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  44.79

  	
  %

  	
  21.40

  	
  %

  	
  $

  	
  18,314

  	
   

  	
  55.21

  	
  %

  	
  78.60

  	
  %

  	
  $

  	
  67,246

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  45.14

  	
  %

  	
  22.02

  	
  %

  	
  $

  	
  18,841

  	
   

  	
  54.86

  	
  %

  	
  77.98

  	
  %

  	
  $

  	
  66,719

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  45.49

  	
  %

  	
  22.64

  	
  %

  	
  $

  	
  19,368

  	
   

  	
  54.51

  	
  %

  	
  77.36

  	
  %

  	
  $

  	
  66,192

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  45.83

  	
  %

  	
  23.25

  	
  %

  	
  $

  	
  19,895

  	
   

  	
  54.17

  	
  %

  	
  76.75

  	
  %

  	
  $

  	
  65,665

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  46.18

  	
  %

  	
  23.87

  	
  %

  	
  $

  	
  20,422

  	
   

  	
  53.82

  	
  %

  	
  76.13

  	
  %

  	
  $

  	
  65,138

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  46.53

  	
  %

  	
  24.48

  	
  %

  	
  $

  	
  20,949

  	
   

  	
  53.47

  	
  %

  	
  75.52

  	
  %

  	
  $

  	
  64,611

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  46.88

  	
  %

  	
  25.10

  	
  %

  	
  $

  	
  21,476

  	
   

  	
  53.13

  	
  %

  	
  74.90

  	
  %

  	
  $

  	
  64,084

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  47.22

  	
  %

  	
  25.72

  	
  %

  	
  $

  	
  22,003

  	
   

  	
  52.78

  	
  %

  	
  74.28

  	
  %

  	
  $

  	
  63,557

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  47.57

  	
  %

  	
  26.33

  	
  %

  	
  $

  	
  22,530

  	
   

  	
  52.43

  	
  %

  	
  73.67

  	
  %

  	
  $

  	
  63,030

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  47.92

  	
  %

  	
  26.95

  	
  %

  	
  $

  	
  23,058

  	
   

  	
  52.08

  	
  %

  	
  73.05

  	
  %

  	
  $

  	
  62,503

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  48.26

  	
  %

  	
  27.56

  	
  %

  	
  $

  	
  23,585

  	
   

  	
  51.74

  	
  %

  	
  72.44

  	
  %

  	
  $

  	
  61,975

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  48.61

  	
  %

  	
  28.18

  	
  %

  	
  $

  	
  24,112

  	
   

  	
  51.39

  	
  %

  	
  71.82

  	
  %

  	
  $

  	
  61,448

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  48.96

  	
  %

  	
  28.80

  	
  %

  	
  $

  	
  24,639

  	
   

  	
  51.04

  	
  %

  	
  71.20

  	
  %

  	
  $

  	
  60,921

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  49.31

  	
  %

  	
  29.41

  	
  %

  	
  $

  	
  25,166

  	
   

  	
  50.69

  	
  %

  	
  70.59

  	
  %

  	
  $

  	
  60,394

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  49.65

  	
  %

  	
  30.03

  	
  %

  	
  $

  	
  25,693

  	
   

  	
  50.35

  	
  %

  	
  69.97

  	
  %

  	
  $

  	
  59,867

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  50.00

  	
  %

  	
  30.65

  	
  %

  	
  $

  	
  26,220

  	
   

  	
  50.00

  	
  %

  	
  69.35

  	
  %

  	
  $

  	
  59,340

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  50.35

  	
  %

  	
  31.26

  	
  %

  	
  $

  	
  26,747

  	
   

  	
  49.65

  	
  %

  	
  68.74

  	
  %

  	
  $

  	
  58,813

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  50.69

  	
  %

  	
  31.88

  	
  %

  	
  $

  	
  27,274

  	
   

  	
  49.31

  	
  %

  	
  68.12

  	
  %

  	
  $

  	
  58,286

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  51.04

  	
  %

  	
  32.49

  	
  %

  	
  $

  	
  27,801

  	
   

  	
  48.96

  	
  %

  	
  67.51

  	
  %

  	
  $

  	
  57,759

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  51.39

  	
  %

  	
  33.11

  	
  %

  	
  $

  	
  28,328

  	
   

  	
  48.61

  	
  %

  	
  66.89

  	
  %

  	
  $

  	
  57,232

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  51.74

  	
  %

  	
  33.73

  	
  %

  	
  $

  	
  28,855

  	
   

  	
  48.26

  	
  %

  	
  66.27

  	
  %

  	
  $

  	
  56,705

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  52.08

  	
  %

  	
  34.34

  	
  %

  	
  $

  	
  29,383

  	
   

  	
  47.92

  	
  %

  	
  65.66

  	
  %

  	
  $

  	
  56,178

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  52.43

  	
  %

  	
  34.96

  	
  %

  	
  $

  	
  29,910

  	
   

  	
  47.57

  	
  %

  	
  65.04

  	
  %

  	
  $

  	
  55,650

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  52.78

  	
  %

  	
  35.57

  	
  %

  	
  $

  	
  30,437

  	
   

  	
  47.22

  	
  %

  	
  64.43

  	
  %

  	
  $

  	
  55,123

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  53.13

  	
  %

  	
  36.19

  	
  %

  	
  $

  	
  30,964

  	
   

  	
  46.88

  	
  %

  	
  63.81

  	
  %

  	
  $

  	
  54,596

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  53.47

  	
  %

  	
  36.81

  	
  %

  	
  $

  	
  31,491

  	
   

  	
  46.53

  	
  %

  	
  63.19

  	
  %

  	
  $

  	
  54,069

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  53.82

  	
  %

  	
  37.42

  	
  %

  	
  $

  	
  32,018

  	
   

  	
  46.18

  	
  %

  	
  62.58

  	
  %

  	
  $

  	
  53,542

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  54.17

  	
  %

  	
  38.04

  	
  %

  	
  $

  	
  32,545

  	
   

  	
  45.83

  	
  %

  	
  61.96

  	
  %

  	
  $

  	
  53,015

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  54.51

  	
  %

  	
  38.65

  	
  %

  	
  $

  	
  33,072

  	
   

  	
  45.49

  	
  %

  	
  61.35

  	
  %

  	
  $

  	
  52,488

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  54.86

  	
  %

  	
  39.27

  	
  %

  	
  $

  	
  33,599

  	
   

  	
  45.14

  	
  %

  	
  60.73

  	
  %

  	
  $

  	
  51,961

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  55.21

  	
  %

  	
  39.89

  	
  %

  	
  $

  	
  34,126

  	
   

  	
  44.79

  	
  %

  	
  60.11

  	
  %

  	
  $

  	
  51,434

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  55.56

  	
  %

  	
  40.50

  	
  %

  	
  $

  	
  34,653

  	
   

  	
  44.44

  	
  %

  	
  59.50

  	
  %

  	
  $

  	
  50,907

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  55.90

  	
  %

  	
  41.12

  	
  %

  	
  $

  	
  35,180

  	
   

  	
  44.10

  	
  %

  	
  58.88

  	
  %

  	
  $

  	
  50,380

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  56.25

  	
  %

  	
  41.73

  	
  %

  	
  $

  	
  35,708

  	
   

  	
  43.75

  	
  %

  	
  58.27

  	
  %

  	
  $

  	
  49,853

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  56.60

  	
  %

  	
  42.35

  	
  %

  	
  $

  	
  36,235

  	
   

  	
  43.40

  	
  %

  	
  57.65

  	
  %

  	
  $

  	
  49,325

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  56.94

  	
  %

  	
  42.97

  	
  %

  	
  $

  	
  36,762

  	
   

  	
  43.06

  	
  %

  	
  57.03

  	
  %

  	
  $

  	
  48,798

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  57.29

  	
  %

  	
  43.58

  	
  %

  	
  $

  	
  37,289

  	
   

  	
  42.71

  	
  %

  	
  56.42

  	
  %

  	
  $

  	
  48,271

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  57.64

  	
  %

  	
  44.20

  	
  %

  	
  $

  	
  37,816

  	
   

  	
  42.36

  	
  %

  	
  55.80

  	
  %

  	
  $

  	
  47,744

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  57.99

  	
  %

  	
  44.81

  	
  %

  	
  $

  	
  38,343

  	
   

  	
  42.01

  	
  %

  	
  55.19

  	
  %

  	
  $

  	
  47,217

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  58.33

  	
  %

  	
  45.43

  	
  %

  	
  $

  	
  38,870

  	
   

  	
  41.67

  	
  %

  	
  54.57

  	
  %

  	
  $

  	
  46,690

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  58.68

  	
  %

  	
  46.05

  	
  %

  	
  $

  	
  39,397

  	
   

  	
  41.32

  	
  %

  	
  53.95

  	
  %

  	
  $

  	
  46,163

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  59.03

  	
  %

  	
  46.66

  	
  %

  	
  $

  	
  39,924

  	
   

  	
  40.97

  	
  %

  	
  53.34

  	
  %

  	
  $

  	
  45,636

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  59.38

  	
  %

  	
  47.28

  	
  %

  	
  $

  	
  40,451

  	
   

  	
  40.63

  	
  %

  	
  52.72

  	
  %

  	
  $

  	
  45,109

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  59.72

  	
  %

  	
  47.89

  	
  %

  	
  $

  	
  40,978

  	
   

  	
  40.28

  	
  %

  	
  52.11

  	
  %

  	
  $

  	
  44,582

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  60.07

  	
  %

  	
  48.51

  	
  %

  	
  $

  	
  41,505

  	
   

  	
  39.93

  	
  %

  	
  51.49

  	
  %

  	
  $

  	
  44,055

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  60.42

  	
  %

  	
  49.13

  	
  %

  	
  $

  	
  42,033

  	
   

  	
  39.58

  	
  %

  	
  50.87

  	
  %

  	
  $

  	
  43,528

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  60.76

  	
  %

  	
  49.74

  	
  %

  	
  $

  	
  42,560

  	
   

  	
  39.24

  	
  %

  	
  50.26

  	
  %

  	
  $

  	
  43,000

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  61.11

  	
  %

  	
  50.36

  	
  %

  	
  $

  	
  43,087

  	
   

  	
  38.89

  	
  %

  	
  49.64

  	
  %

  	
  $

  	
  42,473

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  61.46

  	
  %

  	
  50.97

  	
  %

  	
  $

  	
  43,614

  	
   

  	
  38.54

  	
  %

  	
  49.03

  	
  %

  	
  $

  	
  41,946

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  61.81

  	
  %

  	
  51.59

  	
  %

  	
  $

  	
  44,141

  	
   

  	
  38.19

  	
  %

  	
  48.41

  	
  %

  	
  $

  	
  41,419

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  62.15

  	
  %

  	
  52.21

  	
  %

  	
  $

  	
  44,668

  	
   

  	
  37.85

  	
  %

  	
  47.79

  	
  %

  	
  $

  	
  40,892

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  62.50

  	
  %

  	
  52.82

  	
  %

  	
  $

  	
  45,195

  	
   

  	
  37.50

  	
  %

  	
  47.18

  	
  %

  	
  $

  	
  40,365

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  62.85

  	
  %

  	
  53.44

  	
  %

  	
  $

  	
  45,722

  	
   

  	
  37.15

  	
  %

  	
  46.56

  	
  %

  	
  $

  	
  39,838

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  63.19

  	
  %

  	
  54.05

  	
  %

  	
  $

  	
  46,249

  	
   

  	
  36.81

  	
  %

  	
  45.95

  	
  %

  	
  $

  	
  39,311

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  63.54

  	
  %

  	
  54.67

  	
  %

  	
  $

  	
  46,776

  	
   

  	
  36.46

  	
  %

  	
  45.33

  	
  %

  	
  $

  	
  38,784

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  63.89

  	
  %

  	
  55.29

  	
  %

  	
  $

  	
  47,303

  	
   

  	
  36.11

  	
  %

  	
  44.71

  	
  %

  	
  $

  	
  38,257

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  64.24

  	
  %

  	
  55.90

  	
  %

  	
  $

  	
  47,830

  	
   

  	
  35.76

  	
  %

  	
  44.10

  	
  %

  	
  $

  	
  37,730

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  
	
  64.58

  	
  %

  	
  56.52

  	
  %

  	
  $

  	
  48,358

  	
   

  	
  35.42

  	
  %

  	
  43.48

  	
  %

  	
  $

  	
  37,203

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  	
  $

  	
  85,560

  	
   

  

 

If Land Share percentages
are between the above ranges, Funding Shares shall be determined by
interpolation (e.g., NYTC Member Land Share of 60.00% shall result in NYTC
Member Funding Share of 48.39%, computed as follows: 47.89% + ((48.51%-47.89%)
/ (60.07%-59.72%)) x (60.00%-59.72%) = 48.39%.

 

 

EXHIBIT L

 

Pledge and Assignment Agreement

 

 

EXHIBIT L

 

[Pledge and Assignment Agreement]

 

PLEDGE AND ASSIGNMENT
AGREEMENT

 

PLEDGE AND ASSIGNMENT AGREEMENT (as it may be amended, supplemented, or
otherwise modified from time to time, this “Agreement”) dated as of
                      ,
2001 made by FC Lion LLC, a New York limited liability company (the “Pledgor”),
in favor of NYT Real Estate Company LLC, a New York limited liability company,
as the secured party (the “Secured Party”).

 

RECITALS

 

WHEREAS:

 

A.                                   Pursuant to that certain Operating Agreement
made as of even date herewith (as the same may be amended, supplemented or
otherwise modified from time to time, (the “Operating Agreement”) between the
Pledgor and Secured Party (individually, each sometimes referred to as a
“Member” and collectively sometimes referred to as the “Members”) and the
Articles of Organization of The New York Times Building LLC, Pledgor and
Secured Party formed a limited liability company (the “Company”) to lease
certain real property and develop thereon a multi-story office building that
will serve as the corporate headquarters of The New York Times Company (the
“Project”).

 

B.                                     Pursuant to the terms of the Operating
Agreement (including, without limitation, Sections 3.01 (a), (b), (c), (d),
(e), (f), (g), (h), (i), (j) or (k) thereof), Pledgor is required to make
capital contributions to the Company for the development of the Project
(“Capital Contributions”).

 

C.                                     Pursuant to Section 3.04(a) of the
Operating Agreement, if Pledgor fails to make any required capital contribution
or contributions, Secured Party may elect to make a loan to the Company
(“Demand Loan”) in an amount equal to the delinquent capital contribution, such
loan to bear interest at the Default Rate and to be repayable by Pledgor on
demand and secured by Pledgor’s interest in the Company and its rights to
distributions and other amounts payable to it under the Operating Agreement.

 

D.                                    Pursuant to Section 3.04(b) of the
Operating Agreement, if the amount of Capital Contributions (inclusive of
accrued and unpaid interest thereon) that Pledgor has failed to make as
required pursuant to the terms of the Operating Agreement exceeds, in the
aggregate, $5,000,000 (the “Acquisition Threshold”) Secured Party may acquire the
Membership Interest of Pledgor in the Company in accordance with the procedures
in said Section 3.04(b) set forth (the “Acquisition Option”).

 

E.                                      The Members have agreed that as further and
additional security to Secured Party for Pledgor’s obligations to make Capital
Contributions and to repay any Demand Loan

 

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(hereinafter
collectively referred to as the “Secured Obligations”), and in confirmation of
Secured Party’s Acquisition Option, the Pledgor shall execute and deliver this
Agreement.

 

NOW, THEREFORE, in consideration of the foregoing covenants and other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Pledgor and the Secured Party hereby agree as follows:

 

1.                                       Grant of Security Interests; Certain
Definitions. As security for
the payment and performance in full of the Secured Obligations, the Pledgor
does hereby (i) grant to the Secured Party, a first priority and exclusive
continuing lien on and security interest in, and hereby pledges to the Secured
Party, the properties and property rights listed on Schedule 1 hereto
(hereinafter individually and collectively called the “Collateral”) and (ii)
ratify and confirm Secured Party’s Acquisition Option with respect thereto. For
purposes of this Agreement, the terms “Company”, “Company Documents” and
“Membership Interest” shall have the meanings given thereto in said
Schedule 1 hereto. All other capitalized terms used herein without
definition shall have the meanings ascribed thereto in the Operating
Agreement.  The Pledgor shall not grant
or suffer to exist any other lien on or security interest in, or any other
claim or encumbrance affecting, the Collateral or any part thereof except as
expressly permitted under the Operating Agreement.

 

2.                                       Assurances.

 

At any time and from time to time, upon demand of the Secured Party, at
the Pledgor’s sole expense, the Pledgor will give, execute, file and record, or
cause the same to be done by other parties, any and all notices, financing
statements, financing statement amendments, or continuation statements, that
the Secured Party may reasonably consider necessary to create, confirm,
preserve, maintain, continue, perfect or validate, or establish the priority
of, the security interest granted hereunder or to enable the Secured Party to
exercise or enforce its rights hereunder with respect to such lien, security
interest and Acquisition Option.

 

3.                                       Representations; Warranties; Covenants. The Pledgor hereby represents, warrants and
covenants, to and with the Secured Party, that:

 

(1)                                  Except for the security interest granted
hereunder, but subject, however, to Secured Party’s exercise of the Acquisition
Option in accordance with the provisions of Section 6 of this Agreement
and Section 3.04 of the Operating Agreement, the Pledgor (i) is and will
at all times continue to be the direct legal and beneficial owner of the
Collateral hereunder, (ii) holds in the manner aforesaid the Collateral
hereunder free and clear of all liens, claims, charges, restrictions,
encumbrances, security interests or voting agreements (except as may be set
forth in the Company Documents as in effect on the date hereof to the extent
not waived or modified) or trusts of any kind or nature, and has not executed
or authorized and will not execute or authorize (except as contemplated
hereunder) the filing of any financing statement or other similar notice
covering the Collateral or any part thereof, (iii) will not make or suffer any
assignment or pledge, or create or suffer the creation of any lien, claim,
charge, encumbrance or security interest affecting, or any voting agreement
(except as may be set forth in the Company Documents as in effect on the date
hereof to the extent not waived or modified) or trusts with respect to, the
Collateral or any part thereof, and (iv) will not sell, assign, or

 

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transfer
or encumber its interest in the Company except as permitted under the Operating
Agreement, but nevertheless subject to the lien hereof.

 

(2)                                  The Pledgor (i) has, and at all times will
have, good right and legal authority to grant a security interest in the
Collateral in the manner hereby contemplated and (ii) will defend, at its own
cost, its and the Secured Party’s title and interest thereto or therein,
against any and all attachments, liens, claims, charges, encumbrances, security
interests, agreements, trusts, or other impediments of any nature not permitted
hereunder, however arising, of all persons whomsoever.

 

(3)                                  No consent or approval of any governmental
body or regulatory authority or any securities exchange or any other person is
necessary for the validity of the grant or enforcement of the security interest
effected hereby, including, without limitation, Secured Party’s exercise of the
Acquisition Option, nor does the entering into or performance hereunder by the
Pledgor violate or constitute, nor the enforcement of any such security
interest constitute a default or require any consent or approval of any other
person (other than such as have been obtained) under the terms of the Pledgor’s
organizational documents or any material indenture, agreement, instrument or
document, or any order or decree of any court, tribunal, or other person or
body, to which the Pledgor is a party or by which the Pledgor or the property
thereof is bound or affected.

 

(4)                                  Pledgor hereby irrevocably waives any defense
to the enforcement of Secured Party’s rights and remedies under this Agreement
premised upon a claim that (i) the execution and delivery of this Agreement by
the Pledgor fails to vest in the Secured Party, the rights in the Collateral as
set forth herein, or (ii) upon execution and delivery hereof, the Secured Party
does not have a valid and enforceable first priority continuing security
interest in and contingent option to acquire the Collateral, or (iii) upon
filing of appropriate Uniform Commercial Code financing statements with the
office(s) specified in Schedule 3 hereto, such security interest is not fully
perfected, and is not at all times superior to any other lien, security
interest or encumbrance against the Collateral.

 

(5)                                  The Pledgor is a New York limited liability
company in good standing under applicable law.

 

(6)                                  All necessary action on the part of the
Pledgor to authorize the execution, delivery and performance of this Agreement,
and the creation and grant of the security interests and Acquisition Option
hereunder in the Collateral, has been duly and properly taken and all
conditions to the effectiveness of such security interests and Acquisition
Option have been met.

 

(7)                                  Pledgor was formed on November 30, 2001
and the office where it keeps its records regarding the Collateral is and at
all times has been as set forth in Schedule 4 hereto.

 

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4.                                       Distributions; Other Rights; Pledgor
Obligations.

 

(1)                                  After written notice by the Secured Party to
the Company, which the Secured Party may give, in its sole discretion, upon the
giving of a Section 3.04 Assignment Notice following the occurrence and
during the continuation of an Event of Default, there shall become vested in
the Secured Party the sole and exclusive right and authority to receive and
retain payments and distributions from the Company otherwise payable to the
Pledgor (which shall, (i) unless a “Major Event of Default”, as such term is
defined in Section 6(a) hereof, shall have occurred and be continuing and
the “Section 3.04 Assignment Notice”, as such term is defined in the
Operating Agreement, shall have been delivered, be applied against any Demand
Loans then outstanding, and (ii) if a “Major Event of Default” shall have
occurred and be continuing and the Section 3.04 Assignment Notice shall
have been delivered, be retained by Secured Party without obligation to account
to Pledgor with respect thereto), which right and authority the Secured Party
may exercise by written notice to the Company and Pledgor. Any amounts paid or
distributed to the Pledgor notwithstanding the preceding sentences of this
paragraph shall forthwith be delivered to the Secured Party in the form
received (except for the appropriate endorsement of any checks and except for
any other appropriate instruments of transfer), and all such amounts
distributed to the Pledgor shall be received and held apart separately in trust
for the benefit of the Secured Party pending such delivery.

 

(2)                                  After the occurrence of a Major Event of
Default and the giving of the 3.04 Assignment Notice in accordance with the
Operating Agreement, (i) the Pledgor shall not be entitled to exercise any and
all rights to consent, approve, elect, determine, consult, propose, agree, or
similar prerogatives, if any, pertaining to the Collateral or any part thereof
(“Prerogatives”), and (ii) automatically, without further notice, all rights of
the Pledgor to exercise Prerogatives, if any, that it would otherwise be
entitled to exercise shall cease, and the exercise of any such Prerogatives
shall thereupon be subject in each instance to the prior approval of the
Secured Party.

 

(3)                                  Notwithstanding anything contained elsewhere
herein, this Agreement shall not in any way be deemed to obligate any other
transferee of Secured Party, to assume any of the Pledgor’s obligations,
duties, expenses or liabilities in respect of the Collateral (collectively,
“Pledgor Obligations”) unless such purchaser or other transferee, at its
written election, becomes a member of the Company or otherwise agrees in
writing to assume any or all of said Pledgor Obligations.

 

5.                                       Additional Covenants. The Pledgor hereby covenants and agrees:

 

(1)                                  that, to the extent permitted by law, the
Secured Party may file without the signature of the Pledgor Uniform Commercial
Code financing statements and continuations and amendments thereof in respect
of the security interest and Acquisition Option hereunder, and that
photographic or other reproductions of this Agreement or of any financing
statement or continuation thereof shall be sufficient as a financing statement
or continuation thereof;

 

(2)                                  that the Pledgor will give the Secured Party
prior notice of any change of Pledgor’s residence or principal place of
business, place where books and records

 

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covering
the Collateral are kept, name, identity, social security or taxpayer
identification number or change of structure in respect of the Company,
including, without limitation, notice of any merger, consolidation or
combination to which the Company is a party, or of any other event that might result
in an impairment of the effectiveness of any Uniform Commercial Code filing in
respect of any Collateral;

 

(3)                                  that the Pledgor will, at its expense,
execute, acknowledge, deliver and cause to be duly filed all such further
instruments and documents and take all such actions as the Secured Party may
from time to time reasonably request to better assure, preserve, protect and
perfect the security interest and pledge and the rights and remedies created
hereby, including the Acquisition Option and the payment of any fees and taxes
required in connection with the execution and delivery of this Agreement, the
granting of the security interest, the pledge, and the filing of any financing
statements or other documents in connection herewith; and

 

(4)                                  that at its option and upon at least twenty
(20) days prior written notice to Pledgor, the Secured Party may discharge past
due taxes, assessments, charges, fees, liens, security interests or other
encumbrances at any time levied or placed on the Collateral and may pay for the
maintenance and preservation of the Collateral to the extent the Pledgor fails
to do so as required by this Agreement or the Operating Agreement, and the
Pledgor agrees to reimburse the Secured Party on demand for any payment made or
any expense incurred by the Secured Party pursuant to the foregoing
authorization; provided that nothing in this paragraph shall be interpreted as
excusing the Pledgor from the performance of, or imposing any obligation on the
Secured Party to cure or perform, any covenants or other promises of the
Pledgor in respect of taxes, assessments, charges, fees, liens, security
interests or other encumbrances and maintenance as set forth herein or in the
Operating Agreement, except and to the extent it is so obligated as a member of
the Company.

 

6.                                       Event of Default.

 

(a)                                  As used in this Agreement, an “Event of
Default” shall mean:

 

(i)                                     the failure by the Pledgor to make any
Capital Contribution required to be made by the Pledgor under the Operating
Agreement which defaulted Capital Contribution (and accrued and unpaid interest
thereon at the Default Rate) exceeds $5,000,000 (or which defaulted Capital
Contribution, when aggregated with any prior defaulted Capital Contributions of
Pledgor with accrued and unpaid interest thereon at the Default Rate, exceeds
$5,000,000), which failure continues after the giving of the Section 3.04
Default Notice and the expiration of applicable cure periods under
Section 3.04(b) of the Operating Agreement (hereinafter sometimes called a
“Major Event of Default”); or

 

(ii)                                  the failure by Pledgor to repay any Demand
Loan upon demand by the Secured Party (it being acknowledged and

 

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agreed that the failure to repay any Demand Loan in an amount equal to
or in excess of, or in an amount which when aggregated with the amount of any
other unpaid Demand Loan(s) equals or exceeds, $5,000,000, upon demand by the
Secured Party, shall also be deemed a “Major Event of Default”).

 

(b)                                 Upon the occurrence and during the
continuation of a Major Event of Default, the Secured Party may (without any
obligation to seek performance of any guarantee or other accommodation in favor
of Secured Party in respect of any Contribution Obligation or to resort to any
other security, right or remedy granted to it under any other instrument or
agreement, including without limitation, any other document or other instrument
or agreement referred to herein) exercise the Acquisition Option and acquire
the Membership Interest of Pledgor in the Company subject to and in accordance
with Section 3.04 of the Operating Agreement.

 

7.                                       No Obligation of Secured Party. The powers conferred on the Secured Party
hereunder are solely to protect its interest in the Collateral and shall not
impose any duty upon it to exercise any such powers or any other responsibility
except as set forth herein and except such obligations as Secured Party may
have upon the acquisition of the Collateral following the exercise of the
Acquisition Option pursuant to Section 3.04(b) of the Operating Agreement.
The Secured Party may, in its sole and absolute discretion, but with no
obligation whatsoever to do so, expend or invest moneys to cure a default by
the Pledgor individually or as a member or manager of the Company or otherwise
protect the Collateral. Except for the exercise of reasonable care in the
custody of any Collateral in its possession and the accounting for monies
actually received by it hereunder, the Secured Party shall have no duty as to
any Collateral, except and only to the extent that the Secured Party shall have
the responsibilities imposed on it as a member and a manager of the Company
under the Operating Agreement.

 

8.                                       Rights Cumulative. No failure on the part of the Secured Party
to exercise, and no delay 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 by the Secured Party preclude any other or
further exercise thereof or the exercise of any other right, power or remedy.
Subject to Section 3.04(d) of the Operating Agreement, all rights and
remedies of the Secured Party hereunder and under the Operating Agreement are
cumulative and are not exclusive of any other rights or remedies provided
herein or therein or by law or otherwise.

 

9.                                       Rights Absolute; No Discharge of Pledgor; No
Assumption of Pledgor Liabilities. All rights of the Secured Party hereunder, the grant of the security
interest in and pledge of the Collateral, and all obligations of the Pledgor
hereunder, shall be absolute and unconditional, irrespective of (i) any lack of
validity or enforceability of the Operating Agreement or any other agreement or
instrument with respect to any of the Secured Obligations or of any other agreement
or instrument relating to any of the foregoing except that the foregoing shall
not preclude Pledgor from asserting the defense that Pledgor is not in default
in the payment or performance of the Secured obligations in accordance with the
terms of the Operating Agreement, (ii) any change in the time, manner or place
of payment of, or in any other term of, all or any part of the Secured
Obligations, including, without limitation, any increase or

 

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reduction
in amount, extension of the time of payment of all or any amount due
thereunder, any change in interest rates applicable thereto, any subordination
thereof or of other obligations thereto, or renewal of all or any thereof, or
any other amendment or waiver of or any consent to any departure from the terms
of the Operating Agreement or any other agreement or instrument, (iii) any
exchange, release or nonperfection of any lien, security interest or collateral
security in respect thereof, or any release or amendment or waiver of or
departure from any guarantee of all or any of the Secured Obligations or the
failure to enforce any such collateral security or any release, amendment or
waiver of or consent to or departure from any guarantee for or undertaking
relating to any of the Secured Obligations, (iv) any exercise or nonexercise by
the Secured Party of any right, remedy, power or privilege under or in respect
of this Agreement, or applicable law, including, without limitation, Secured
Party’s failure to or delay in the exercise of the Acquisition Option and any
failure by the Secured Party to setoff or release in whole or in part any
credit on its books in favor of the Pledgor or any waiver, consent, extension,
indulgence or other action or inaction in respect of any thereof, (v) any
change in the structure or tax characterization of the Pledgor, or any
transaction (including any merger or consolidation) to which it may be a party
(in each case whether or not permitted under the Operating Agreement), or (vi)
any other act, omission or delay to do any act or thing or any circumstance
which may or might vary the risk of the Pledgor or impair the Collateral or
which might otherwise constitute a defense available to, or a discharge,
release, or exoneration of, any person, including the Pledgor, in respect of
the Secured Obligations or in respect of this Agreement. Nothing in this
Section shall deprive the Pledgor of the defense of payment of any
Contribution Obligation. Nothing in this Agreement shall cause or obligate the
Secured Party to assume or otherwise be or become liable for any of the
Pledgor’s obligations, liabilities, duties, expenses, or costs in respect of
any Collateral, under any Company Documents or under law in respect of the
Company or its property or its interest in any other membership or entity,
unless it becomes a member thereof at its written election, or except as may be
provided for under the Operating Agreement.

 

10.                                 Further Waivers. The Pledgor hereby waives presentment,
demand, and protest (to the fullest extent permitted by applicable law) of any
kind in connection with this Agreement or any Collateral. Except notices which
are expressly provided for herein, the Pledgor hereby waives notice (to the
fullest extent permitted by applicable law) of any kind in connection with this
Agreement. The Pledgor hereby further waives any claims of any nature
whatsoever against the Secured Party (and its respective officers, employees,
agents, nominees, counsel and each of them) arising out of or related to the
sale or transfer of the Collateral, or any part thereof, in accordance with
this Agreement or applicable law, notwithstanding that such sale or transfer
occurred at such time or in such a manner as to directly or indirectly decrease
the purchase price required to be paid for the Collateral. The Pledgor hereby
consents to, and waives any claim by reason of, any sale or other disposition
pursuant to this Agreement of the economic rights to receive payments and
distributions from the Company under Section 4(a) separate from any
managerial rights of the Pledgor as a member and manager of the Company.

 

11.                                 Termination and Release. This Agreement shall terminate upon the
earlier to occur of the following two (2) events: (i) Secured Party’s
acquisition of the Collateral pursuant to this Agreement, or (ii) the
occurrence of the Conversion Date.  
Secured Party will deliver to Pledgor upon request after termination
instruments confirming such termination, including without limitation, UCC-3
Termination Statements, provided that, in the event of a termination by reason
of Secured Party’s acquisition of the Collateral pursuant to this

 

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Agreement,
Pledgor shall have delivered to Secured Party a written confirmation in form
reasonably satisfactory to Secured Party that Pledgor has no right, title or
interest in and to the Collateral and that such Collateral is owned by Secured
Party without any claims retained by Pledgor with respect to such Collateral,
but the failure of Pledgor to deliver such a confirmation shall not affect the
exercise of Secured Party’s rights pursuant to this Agreement or Secured
Party’s right, title and interest in and to the Collateral.

 

12.                                 Amendments; Waivers; No Consequential Damages. No amendment or waiver of any provision of
this Agreement, nor consent to any departure by the Pledgor therefrom, shall in
any event be effective unless the same shall be in writing and signed by the
party to be charged therewith. Any such waiver, consent or approval shall be
effective only in the specific instance and for the purpose for which given. No
notice to or demand on the Pledgor in any case shall entitle the Pledgor to any
other or further notice or demand in the same, similar or other circumstances.
No waiver by the Secured Party of any breach or default of or by the Pledgor
under this Agreement shall be deemed a waiver of any other previous breach or
default or any thereafter occurring.

 

13.                                 Reliance, Survival; Severability.

 

(1)                                  All covenants, agreements, representations
and warranties made by the Pledgor herein and in the certificates or other
instruments prepared or delivered in connection with or pursuant to this
Agreement or the Operating Agreement shall be considered to have been relied upon
by the Secured Party and shall survive the Secured Obligations, regardless of
any investigation made by the Secured Party or on its behalf, and shall
continue in full force and effect as long as the Secured Obligations are
outstanding and unpaid or any other fee or amount payable under this Agreement
is outstanding and unpaid.

 

(2)                                  Any provision of this Agreement that is
illegal, invalid or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such illegality, invalidity or unenforceability without invalidating
the remaining provisions hereof or affecting the legality, validity or
enforceability of such provisions in any other jurisdiction. The parties hereto
agree to negotiate in good faith to replace any illegal, invalid or
unenforceable provision of this Agreement with a legal, valid and enforceable
provision that, to the extent possible, will preserve the economic bargain of
this Agreement, or to otherwise amend this Agreement to achieve such result.

 

14.                                 Successors and Assigns. Whenever in this Agreement any of the
parties hereto is referred to, such reference shall be deemed to include the
permitted successors and assigns of such party; and all covenants, promises and
agreements by or on behalf of the Pledgor or the Secured Party that are
contained in this Agreement shall bind and inure to the benefit of the Pledgor,
the Secured Party, and their respective successors and assigns. Neither Pledgor
nor Secured Party may assign or transfer any of its rights or obligations
hereunder or any interest herein or in the Collateral except in connection with
a permitted assignment or transfer of its respective interest under the
Operating Agreement (and any such attempted assignment shall be null and void).

 

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15.                                 GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH AND SHALL BE GOVERNED BY THE LAWS OF THE STATE OF
NEW YORK WITHOUT REFERENCE TO ANY CONFLICT OF LAWS PRINCIPLES.

 

16.                                 Headings. Any Article or Section headings in this Agreement are for
convenience only and shall not affect the construction hereof.

 

17.                                 Notices. Notices, consents and other communications provided for herein shall
(except as otherwise expressly permitted herein) be in writing and given as
provided in Section 14.02 of the Operating Agreement. Communications and
notices to the Company shall be given to it at its address set forth in
Schedule 2 hereto.

 

18.                                 Expenses; Indemnification.

 

(1)                                  In the event of litigation to enforce or
interpret this Agreement, the prevailing party(ies) in such litigation shall be
entitled to recover from the losing party(ies) its or their reasonable
attorney’ s fees and costs incurred in such litigation, including such costs
and fees on appeal.

 

(2)                                  Any amounts payable by the Pledgor as
provided hereunder shall be additional Secured Obligations secured hereby. The
provisions of this Section shall remain operative and in full force and
effect regardless of the termination of this Agreement, the consummation of the
transactions contemplated hereby, the repayment of any of the Secured
Obligations, the invalidity or unenforceability of any term or provision of
this Agreement or any investigation made by or on behalf of the Secured Party.
All amounts due under this Section shall be payable on written demand
therefor and shall bear interest until paid in full at the Default Rate and
shall be secured by the Secured Party’s security interest in the Collateral.

 

19.                                 Counterparts. This Agreement may be executed in separate
counterparts (telecopy of any executed signature page hereof having the same
effect as manual delivery of an executed counterpart hereof), each of which
shall constitute an original, but all of which, when taken together, shall
constitute but one Agreement.

 

20.                                 Integration; Submission to Jurisdiction;
Consent to Service.

 

(1)                                  Except as expressly herein provided, this
Agreement, the Operating Agreement, and any and all other signed writings of
even date herewith, constitute the entire agreement among the parties relating
to the subject matter hereof. Any previous agreement among the parties with
respect to the transactions contemplated hereunder is superseded by this
Agreement and such other agreements and writings. Except as expressly provided
herein, nothing in this Agreement, expressed or implied, is intended to confer
upon any party, other than the parties hereto, any rights, remedies,
obligations or liabilities under or by reason of this Agreement.

 

(2)                                  The Pledgor hereby irrevocably and
unconditionally submits, for itself and its property, to the exclusive
jurisdiction of the Supreme Court of the State of New York sitting in New York
County, New York and of the United States District Court for the

 

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Southern
District of New York, and any appellate court from any thereof, in any action
or proceeding arising out of or relating to this Agreement or the Operating
Agreement, or for recognition or enforcement of any judgment, and each of the
parties hereto hereby irrevocably and unconditionally agrees that all claims in
respect of any such action or proceeding may be heard and determined in such
New York State or, to the extent permitted by law, in such Federal court. Each
of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law.

 

(3)                                  The Pledgor hereby irrevocably and
unconditionally waives, to the fullest extent it may legally and effectively do
so, any objection which 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 or
the Operating Agreement or any related instrument in any court referred to in
the preceding paragraph. Each of the parties hereto hereby irrevocably waives,
to the fullest extent permitted by law, the defense of an inconvenient forum to
the maintenance of such action or proceeding in any such court.

 

(4)                                  Each party to this Agreement irrevocably
consents to service of process in the manner provided for notices in
Section 14.02 of the Operating Agreement. Nothing in this Agreement will
affect the right of any party to this Agreement to serve process in any other
manner permitted by law.

 

21.                               WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING
TO THIS AGREEMENT OR THE OPERATING AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

 

[BALANCE OF PAGE INTENTIONALLY LEFT BLANK]

 

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

 

	
   

  	
  PLEDGOR:

  
	
   

  	
   

  
	
   

  	
  FC LION LLC, a New York
  limited liability

  company, a member

  
	
   

  	
   

  
	
   

  	
  By:

  	
  FC 41st
  Street Associates, LLC, a

  New York limited liability company,

  its managing member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  RRG 8 South, Inc., a
  New

  York corporation, its managing member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  SECURED
  PARTY:

  
	
   

  	
   

  
	
   

  	
  NYT Real Estate Company
  LLC, a New York

  limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:  Manager

  
								

 

L-11

 

Schedule 1 to Pledge
and Assignment Agreement

 

Collateral

 

(1)                                  The entire membership interest of the Pledgor
in The New York Times Building LLC, a New York limited liability company (the
“Company”), as evidenced by the certificate issued to Pledgor pursuant to
Section 14.13 of the Operating Agreement of the Company, including any
shares or units representing an equity interest in the Company existing at any
time (collectively hereinafter referred to as the “Membership Interest”) and
all other present and future right, title and interest of the Pledgor as a
member of the Company, and the rights, interest, and benefits in respect of the
Pledgor arising under the agreements, documents and/or certificates (including,
without limitation, articles of organization, as amended at any time, or
similar or related publicly filed documents in respect of the Company, its
operating agreement, as amended at any time, and any and all present and future
similar or related constitutional or governing instruments of the Company)
constituting or governing such Company (collectively, the “Company Documents”),
and all other benefits pertaining thereto, including, without limitation, (i)
all distributions by, and any other payments from, the Company, made at any
time, and all present and future rights to receive any distributions or other
payments from the Company, whether the same constitute distributions of
capital, surplus, or profits, or derive from any other source, including,
without limitation, any such distribution or payment derived from,
representing, based upon, measured by, or otherwise in respect of, (x) the
operating revenues of the Company, or (y) any sale, assignment, transfer, or
other disposition (or transaction having comparable effect) of any assets of
the Company, any mortgaging, encumbering, or other financing or refinancing of
any assets of the Company, any insurance proceeds or condemnation awards in
respect of any assets of the Company, any merger, consolidation, or
recapitalization of the Company, any redemption or liquidation of the interest
of the Pledgor in the Company, or any contribution of any property to the
Company by any other holder of any interest therein, (ii) without limiting
clause (i), any and all of Pledgor’s present and future rights to receive any
other payments or distributions, made at any time, from the Company, or other
holders of any interests therein, or from any other party, in respect of (A)
any sale, assignment, transfer, encumbrance or other disposition (or
transaction having comparable effect) of any other party’s interest in such
Company or any rights in respect thereof, and (B) any payments of principal,
interest, or of any other character in respect of any debt owed by the Company
or other holder of any interest therein to the Pledgor, and (iii) subject to
the terms of the Pledge and Assignment Agreement to which this Schedule is
attached, all present and future rights to consent, approve, determine,
consult, propose, agree, or similar prerogatives in respect of any actions or
decisions pertaining to the Company or which affect the Collateral herein
described or the security interest of the secured party, or to receive any
indemnification for any acts or omissions, and all present and future rights to
receive reports, notices, or information pertaining to, or to inspect or review
properties, books, or records of, the Company (all of which property and rights
referred to in this paragraph (a) are referred to collectively as the “Pledged
Property”); and

 

(2)                                  all of the cash and non cash proceeds
(including, without limitation, all proceeds as such term is defined at any
time in the NYUCC), products, rents, issues and profits of, and all
distributions and payments in respect of, any of the property described above
in paragraph (a) or this paragraph (b).

 

L-12

 

Schedule 2 to Pledge
and Assignment Agreement

 

Address of the Company for
Notices

 

The New York Times Building LLC

c/o The New York Times Company

229 West 43rd Street

New York, New York 10036

Attention: David A. Thurm

 

with a copy to:

 

The New York Times Building LLC

c/o The New York Times Company

229 West 43rd Street

New York, New York 10036

Attention: Solomon B. Watson IV

 

and to:

 

Swidler Berlin Shereff Friedman, LLP

The Chrysler Building

405 Lexington Avenue

New York, New York. 10174

Attention: Martin D. Polevoy, Esq.

 

L-13

 

Schedule 3 to Pledge
and Assignment Agreement

 

Offices for Filing Forms
UCC-1

 

New York State Secretary of State

City Register, New York County

City Register, Kings County

 

L-14

 

Schedule 4 to Pledge
and Assignment Agreement

 

Pledgor’s Principal Place of
Business, and Place Where Records Regarding Collateral are Kept

 

One MetroTech Center North

Brooklyn, New York 11201

 

Tradenames and Fictitious
Names of the Pledgor

 

None

 

L-15

 

EXHIBIT M

 

FCE Completion Guaranty to Construction
Lender

 

 

 

EXHIBIT M

 

[FCE Completion
Guaranty to Construction Lender]

 

COMPLETION
GUARANTY

 

THIS COMPLETION GUARANTY (“Guaranty”) is made and entered into as of
the       day of
                 ,
2001, by FOREST CITY ENTERPRISES, INC., an Ohio corporation, whose address is
50 Public Square, Suite 1100, Cleveland, Ohio 44113-2267, Attention: Mr.
James A. Ratner, President (“Guarantor”), in favor of
                                                              ,
whose address is
                                                              ,
Attention:                        
(“Lender”).

 

W I T N E S S E T
H  THAT:

 

WHEREAS, Lender has agreed upon certain conditions to make a
construction and term loan to The New York Times Building LLC, a New York
limited liability company (“Borrower”), in the total principal amount of up to
                                                         
($                       )
(“Loan”), pursuant to the terms and conditions contained in that certain
Construction Loan Agreement of even date herewith between Lender and Borrower
(“Construction Loan Agreement”), which Loan is evidenced by a Promissory Note
(“Note”) in the principal face amount of $                       ,
of even date herewith, and is secured by a Mortgage, Assignment of Leases and
Rents, and Security Agreement (“Mortgage”) pertaining to certain property owned
by Borrower and located in the City, County and State of New York, which is
therein described (“Subject Property”); and

 

WHEREAS, Guarantor has an indirect interest in Borrower; and

 

WHEREAS, in order to induce Lender to make the Loan, and as additional
security for performance by Borrower of its obligations under the Construction
Loan Agreement relating to construction of the Project (as that term is defined
in the Construction Loan Agreement) on the Subject Property, Borrower has
agreed to obtain, and Guarantor has agreed to execute, deliver and perform,
this Guaranty; and

 

WHEREAS, it is a condition precedent to the obligation of Lender to
make the Loan to Borrower and to make any advances under the Construction Loan
Agreement that this Guaranty be executed by Guarantor and be delivered to
Lender; and

 

WHEREAS, Guarantor expects to derive benefits from the Loan to be made
by Lender to Borrower and finds it advantageous, desirable and in its best
interests to execute and deliver this Guaranty to Lender.

 

NOW, THEREFORE, in consideration of Lender’s agreement to make the Loan
to Borrower in accordance with the terms of the Construction Loan Agreement,
and of other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged by

 

M-1

 

Guarantor,
Guarantor hereby agrees that the foregoing recitals are true and correct and
are by this reference hereby made a part hereof as if fully set forth below,
and further covenants and agrees with Lender as follows:

 

1.                                       Guarantor, for itself, its successors and
assigns, hereby primarily, unconditionally, absolutely and irrevocably
guarantees to Lender, and to its successors and assigns, that Borrower shall
fully and punctually comply with and perform all of the agreements, covenants,
obligations and liabilities of Borrower relating only with respect to the
timely construction and completion of all basic building core and shell and all
exterior Improvements (as that term is defined in the Construction Loan
Agreement), including, but not limited to, that construction of the Project (as
that term is defined in the Construction Loan Agreement) shall commence when
required by the Construction Loan Agreement and construction of said
Improvements (but not the Tenant Improvements [as that term is defined in the
Construction Loan Agreement]) shall proceed diligently to Completion (as that
term is defined in the Construction Loan Agreement) on or before the Completion
Date (as that term is defined in the Construction Loan Agreement), in strict
accordance with the Plans (as that term is defined in the Construction Loan
Agreement) approved by Lender and with the other provisions of the Construction
Loan Agreement and of the other Loan Documents (as that term is defined in the
Construction Loan Agreement), free and clear of any mechanics’, materialmen’s
and/or laborers’ liens, in accordance with all applicable zoning, building,
environmental, land use and other laws, statutes, orders, codes, ordinances,
rules and regulations, and all Costs (as that term is defined in the
Construction Loan Agreement) of said Improvements shall be paid as and when due
including, without limitation, the following:

 

(i)                                     To perform, complete and pay for (or cause to
be performed, completed and paid for) the construction of the Improvements and
to pay all costs of said construction and all other costs associated therewith
including, without limitation, the costs of any architects’ and engineers’
fees, if Borrower shall fail to perform or complete such work, as and when
required under the Construction Loan Agreement, including any sums expended in
excess of the amount of indebtedness incurred by Borrower under the
Construction Loan Agreement, whether or not the construction is actually
completed;

 

(ii)                                  To pay all real estate taxes and PILOT
Payments levied and assessed against the Subject Property during the
construction if not paid when due by Borrower, as and when required under the
Construction Loan Agreement; and

 

(iii)                               The full and prompt payment of any
Enforcement Costs (as hereinafter defined in Paragraph 19 hereof).

 

Completion
of the Improvements shall be deemed to have occurred upon satisfaction of all
conditions to “Completion” set forth in the Construction Loan Agreement.

 

2.                                       If the Project is not commenced as and when
required by the Construction Loan Agreement and/or Completion of the
Improvements described in Paragraph 1 hereof (hereinafter called “Subject
Improvements”) does not occur in the manner provided for in the Construction
Loan Agreement on or before the Completion Date, or construction thereof shall
cease for a

 

M-2

 

period
of time such that an event of default exists under the Construction Loan
Agreement, Guarantor shall promptly, upon demand by Lender, (i) diligently
proceed to complete the Subject Improvements at Guarantor’s sole cost and
expense; (ii) fully pay all unpaid Costs of the Subject Improvements
theretofore incurred by Borrower and thereafter incurred by Guarantor to
complete the same; (iii) pay and cause to be released and discharged of record
all mechanic’s, materialmen’s and laborers’ liens resulting from unpaid Costs
of the Subject Improvements; provided, however, that Guarantor shall have the
same right to bond the same off and/or to contest the same granted to Borrower
in the Mortgage, upon the terms and conditions therein provided; and (iv) pay
Lender’s attorneys’ fees and all court costs incurred by Lender in enforcing
this Completion Guaranty. Without in any way limiting the above obligations of
Guarantor, and subject to there being no continuing event of default by
Guarantor under this Guaranty, Lender shall make the undisbursed balance of the
Loan available to Guarantor (pursuant to all of the terms and conditions of the
Construction Loan Agreement and all of the other Loan Documents) for the
purposes of completing the Project and fulfilling its other obligations under
this Guaranty. The obligations and liabilities of Guarantor hereunder shall be
direct and primary and not indirect or secondary, and shall be absolute,
unconditional and irrevocable. Guarantor’s obligations hereunder shall not be
deemed exonerated, discharged or satisfied, except as provided in
Section 15 hereof. Notwithstanding anything else herein set forth which
may be interpreted to provide to the contrary, by acceptance hereof Lender recognizes
and acknowledges that this is not a guaranty of payment of the indebtedness
evidenced and secured by the Loan Documents.

 

3.                                       If Guarantor fails to promptly perform its
obligations under this Guaranty, Lender shall have the following remedies: (a)
at Lender’s option and without any obligation to do so, to take possession of
the Subject Property and proceed and perform on behalf of Guarantor any or all
of Guarantor’s obligations hereunder, and Guarantor shall, upon demand and
whether or not construction of the Project is actually completed by Lender, pay
to Lender all sums expended by Lender in excess of proceeds available under the
Loan in taking possession of the Subject Property and performing Guarantor’s
obligations hereunder, together with interest thereon at the Default Rate (as
that term is defined in the Construction Loan Agreement); and/or (b) from
time-to-time, and without first attempting to require performance by Borrower
or exhausting any security for the Loan, to bring any action at law or in
equity, or both, to compel Guarantor to perform its obligations hereunder,
and/or to collect in any such action compensation for all losses, costs,
expenses, damages and injuries sustained or incurred by Lender as a direct or
indirect consequence of the failure of Guarantor to perform such obligations,
together with interest thereon at the Default Rate.

 

4.                                       Guarantor hereby acknowledges having
received, reviewed and understood a true, correct and complete copy of the
Construction Loan Agreement and each of the other Loan Documents. Guarantor
acknowledges that this Guaranty is in effect and binding without reference to
whether this Guaranty is signed by any other person or entity, that possession
of this Guaranty by Lender shall be conclusive evidence of due delivery hereof
by Guarantor and acceptance hereof by Lender, and that this Guaranty shall
continue in full force and effect, both as to guaranteed obligations and
liabilities now existing and/or those hereafter created.

 

M-3

 

5.                                       Guarantor hereby consents and agrees that,
without any further notice to, or consent or agreement of, Guarantor (a)
Lender make take, hold, exchange, enforce, waive, surrender and/or release
other guarantees, collateral or security which further secure(s) payment and/or
performance of the Loan Documents, or any of them, and (b) that any of the
obligations, terms, covenants and conditions contained in the Loan Documents
(including, but not limited to, Borrower’s obligations thereunder) may be
renewed, altered, extended, changed, modified, supplemented or released at
Lender’s written direction, or with lender’s written consent, without in any
manner affecting this Guaranty or releasing Guarantor herefrom, and without the
further consent of or notice to Guarantor, and Guarantor shall continue to be
liable hereunder to pay and perform pursuant hereto notwithstanding any such
renewal, alteration, extension, change, modification, supplement or release, or
the taking, holding, exchanging, enforcing, waiving, surrender and/or release
of such other guarantees, collateral or security. Guarantor hereby agrees that
all or any part of the Subject Property and any other collateral may be
released from, and any new or additional security may be released from, and any
new or additional security may be added to, the lien and security interest of
the Loan Documents; Borrower, its members and any additional parties who are or
may become liable for payment or performance of the Loan Documents may hereafter
be released from its or their liability under the Loan Documents; Lender may
perfect or fail to perfect, or to continue the perfection of, any lien or
security interest; and Lender may take, or delay in taking, or refuse to take,
any and all action with reference to the Loan Documents, including specifically
the settlement or compromise of any default or event of default allegedly
existing thereunder, all without notice to, consideration to or the consent of
Guarantor, and without in any way releasing, diminishing or affecting the
absolute nature of Guarantor’s obligations and liabilities hereunder.

 

6.                                       Guarantor hereby waives any and all legal
requirements that Lender, or its successors or assigns, must institute any
action or proceeding at law or in equity, or obtain any judgment, or exhaust
their rights, remedies and/or recourses against Borrower or any other person or
entity, or with respect to any security for the obligations hereby guaranteed,
as a condition precedent to making any demand on, bringing an action against,
or obtaining or enforcing any judgment against, Guarantor upon this Guaranty,
and/or that they join Borrower or any other person or entity as a party to any
such action. Guarantor agrees that Lender may simultaneously maintain an action
upon this Guaranty and an action or proceeding upon the Note and/or the
Construction Loan Agreement, and/or to foreclose or otherwise enforce the
Mortgage and/or any other Loan Document. All remedies afforded to Lender, and
its successors or assigns, by reason of this Guaranty and the Loan Documents,
are separate and cumulative remedies, and it is agreed that no one of such
remedies, whether or not exercised by Lender, or its successors or assigns,
shall be deemed in exclusion of any of the other remedies available to Lender
or its successors or assigns, at law, in equity, by statute, under contract
(including, but not limited to, the Loan Documents), hereunder or otherwise,
and shall in no way limit or prejudice any such other remedies which Lender, or
its successors or assigns, may have. Mere delay or failure to act shall not
preclude the exercise or enforcement of any rights and remedies available to
Lender. Guarantor further waives any requirement that lender demand or seek
payment or performance by Borrower or by any other person or entity of the
amounts owing or the covenants to be performed under the Loan Documents,
whether hereby guaranteed or not, as a condition precedent to bringing any
action against Guarantor upon this Guaranty, it being agreed that a

 

M-4

 

failure
to comply with or perform the obligations, terms, covenants and conditions
herein guaranteed shall, without further act, make Guarantor liable as herein
set forth.

 

7.                                       This Guaranty is an absolute, unconditional,
complete and continuing guaranty of performance of the obligations recited in
Paragraphs 1, 2 and 3 hereof. Guarantor hereby expressly waives all defenses of
Borrower pertaining to said obligations, except for the defense of discharge by
complete and irrevocable performance. Guarantor shall not be released (a) by
any act, omission or thing which might, but for this provision of this
Guaranty, be deemed a legal or equitable discharge of a surety or guarantor,
(b) by any application by Borrower of the proceeds of the Loan for purposes
other than required by the Loan Documents, (c) by any defense based upon any
statute or rule of law which provides that the obligations of a surety or
guarantor must be neither larger in amount nor in other respects more
burdensome than those of a principal, (d) by reason of any waiver, extension,
renewal, modification, forbearance or delay by Lender, or its successors or
assigns, or its or their failure to proceed promptly or otherwise, or (e) by reason
of any further obligation or agreement between Borrower, and/or the then owner
of the Subject Property, and the then holder of the Note, relating to the
payment of any sum evidenced thereby or to any of the other terms, covenants
and conditions contained therein or in the other Loan Documents, and Guarantor
hereby expressly waives and surrenders any defense to liability hereunder based
upon the foregoing acts, omissions, things, statutes, rules, waivers,
extensions, modifications, forbearance’s, delays, obligations, agreements, or
any of them, except the defense of complete and irrevocable performance in
full. Guarantor also waives any defense arising by virtue of any disability,
insolvency, bankruptcy, defect in formation or continuation, lack of authority
or power, death, insanity, incompetence, liquidation or dissolution of, or any
cessation or limitation of liability from any cause (other than full and
irrevocable performance) of, Borrower, any member or agent thereof, or any
other surety, co-maker, endorser or guarantor. No change in the ownership of
Borrower or in Borrower’s members shall affect or change the terms of this
Guaranty or in any way change or reduce the liability of Guarantor hereunder.

 

8.                                       Guarantor hereby waives diligence in
collection, notice of acceptance of this Guaranty by Lender and of presentment,
protest, and all other notices and demands of any kind and description now or
hereafter provided for by any law, statute, rule, regulation or agreement,
except as herein otherwise expressly required. Guarantor hereby waives any and
all right to cause a marshaling of the assets of Borrower (collectively or
individually) or any other action with respect thereto by any court or other
governmental body, and consents and agrees that Lender may direct the order and
manner of the sale and/or disposition of all collateral and security under the
Loan Documents and apply the proceeds thereof to the indebtedness evidenced and
secured thereby in such order as Lender may in its sole discretion determine.

 

9.                                       Guarantor hereby expressly agrees that the
liabilities and obligations of Guarantor under this Guaranty shall not in any
way be impaired or otherwise affected by the institution by or against Borrower
or any other person or entity of any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings, or any other similar proceedings for
relief under any bankruptcy law or similar law for the relief of debtors and
that any discharge of any of the obligations and/or liabilities hereby guaranteed
pursuant to any such bankruptcy or similar law or other law shall not diminish,
discharge or otherwise affect in any way the obligations of

 

M-5

 

Guarantor
under this Guaranty, and that upon the institution of any of the above actions,
such obligations shall be enforceable against Guarantor.

 

10.                                 In the event that Guarantor shall advance or
become obligated to pay any sums or incurs any costs or expenses hereunder, or
in the event that for any reason Borrower and/or any subsequent owner of the
Subject Property is now or shall hereafter become indebted or obligated to
Guarantor, the amount of such sum, costs, expenses and such indebtedness or
obligation shall at all times be subordinated as to lien, time of payment and
in all other respects to the amounts owing to Lender under the Loan Documents.
Notwithstanding any payment or payments made, or costs or expenses incurred, by
Guarantor hereunder, Guarantor shall not be entitled to be subrogated to any of
the rights of Lender against Borrower or any other guarantor or any collateral
security or guaranty held by Lender for the payment of the guaranteed
obligation, nor shall Guarantor seek or be entitled to seek any contribution or
reimbursement from Borrower or any other guarantor in respect of payments made,
or costs or expenses incurred, by Guarantor hereunder unless and until the
indebtedness evidenced and secured by the Loan Documents shall have been paid
in full. Except as otherwise set forth herein, Guarantor shall have no right to
participate in any way in the Note, in the Construction Loan Agreement, in the
other Loan Documents or in the right, title or interest of Lender in the
Subject Property, or to receive payments from Borrower upon any indebtedness or
obligation, notwithstanding any payments made, or costs or expenses incurred,
by Guarantor hereunder, all rights of reimbursement, indemnification,
subrogation and participation being hereby expressly waived and released with
respect to any such payments, costs and expenses. Guarantor agrees that,
following any default or event of default under the Loan Documents, and until
the indebtedness evidenced and secured by the Loan Documents shall have been
paid in full, Guarantor will not accept any payment or satisfaction of any kind
of any indebtedness or obligation of Borrower to Guarantor. Further, as long as
Guarantor remains liable hereunder, Guarantor agrees that, if, following any
default or event of default under the Loan Documents, Guarantor should receive
any payment, satisfaction or security for any indebtedness or obligation of
Borrower to Guarantor, the same shall be delivered to Lender in the form
received, endorsed or assigned as maybe appropriate, for application on account
of or as security for the indebtedness evidenced and secured by the Loan
Documents, and, until so delivered, shall be held in trust for Lender as
security for said indebtedness. In addition, at any time, in the event of any
receivership, insolvency, bankruptcy, assignment for the benefit of creditors,
reorganization or arrangement with creditors (whether or not pursuant to
bankruptcy laws), sale of all or substantially all of the assets, dissolution,
liquidation or any other marshaling of the assets and liabilities of Borrower,
Lender shall be entitled to performance in full of the obligations hereby
guaranteed prior to the payment of all or any part of any indebtedness of
Borrower to Guarantor, and Guarantor will, at the request of Lender, file any
claim, proof of claim or other instrument of similar character necessary to
enforce the obligations of Borrower in respect of such indebtedness and hereby
assigns to Lender, and will hold in trust for Lender, any and all monies,
dividends or other assets received in any such proceeding on account of such
indebtedness, unless and until the obligations hereby guaranteed shall be
irrevocably performed in full. In the event Guarantor fails to perform said
obligations, it shall pay and deliver said monies, dividends or other assets to
Lender.

 

11.                                 Guarantor hereby warrants and represents unto
Lender that:

 

M-6

 

(a)                                  all warranties and representations made by
Borrower with respect to Guarantor in the Construction Loan Agreement, in the
other Loan Documents and in the Indemnification Agreement (as that term is
defined in the Construction Loan Agreement) are true, correct and complete on
the date hereof and are not misleading in any material respect;

 

(b)                                 there are no actions, suits or proceedings
pending or, to the knowledge of Guarantor, threatened against or affecting
Guarantor, which will have a material adverse impact upon Guarantor’s ability
to perform its obligations hereunder, or involving the validity or
enforceability of this Guaranty, at law or in equity; and Guarantor is not in
default under any order, writ, injunction, decree or demand of any court or any
administrative body having jurisdiction over Guarantor;

 

(c)                                  any and all balance sheets, net worth
statements, income and expense statements, cash flow statements and other
financial statements of, and other financial statements and data relating to,
Guarantor previously or hereafter delivered to Lender fairly and accurately
present, or will fairly and accurately present, the financial condition of
Guarantor as of the dates thereof; since the dates of those most recently
delivered, there has been no material adverse change in the financial condition
of Guarantor; Guarantor has disclosed all events, conditions, and facts known
to Guarantor which are more likely than not to have a material adverse effect
on the financial condition of Guarantor; and neither this Guaranty nor any
document, financial statement, financial or credit information, certificate or
statement relating to Guarantor and referred to herein or in the Loan
Documents, or furnished to Lender by Guarantor contains, or will contain, any
untrue statement of a material fact or omits, or will omit, a material fact;

 

(d)                                 Guarantor is a corporation duly organized,
validly existing and in good standing under the laws of the State of Ohio, and
has all power, authority, permits, consents, authorizations and licenses
necessary to carry on its business, and to execute, deliver and perform this
Guaranty and any other Loan Documents which it is required to execute; all
resolutions of the board of directors of Guarantor necessary to authorize the
execution, delivery and performance of this Guaranty and such other Loan
Documents have been duly adopted and are in full force and effect; and this
Guaranty and such other Loan Documents have been duly authorized, executed and
delivered by and on behalf of Guarantor so as to constitute this Guaranty and
such other Loan Documents the valid and binding obligation of Guarantor,
enforceable in accordance with their terms.

 

(e)                                  The execution, delivery, and performance by
Guarantor of this Guaranty does not and will not contravene or conflict with
(i) any law, order, rule, regulation, writ, injunction or decree now in effect
of any government, governmental instrumentality court having jurisdiction over
Guarantor, or (ii) any contractual restriction binding on or affecting
Guarantor or Guarantor’s property or assets which may adversely affect
Guarantor’s ability to fulfill its obligations under this Guaranty.

 

12.                                 The validity, construction and enforceability
of this Guaranty shall be governed by the internal laws of the State of
                     ,
without giving effect to conflict of laws principles thereof. Whenever
possible, each provision of this Guaranty and any other statement, instrument
or transaction contemplated hereby or relating hereto shall be interpreted in
such

 

M-7

 

manner
as to be effective and valid under such applicable law, but, if any provision
of this Guaranty or any other statement, instrument or transaction contemplated
hereby or relating hereto or any right or remedy hereby guaranteed or provided
shall be held to be unenforceable, prohibited or invalid under applicable law
as to any person, party or entity or under any circumstances, for any reason,
such provision, right or remedy shall be ineffective only to the extent of such
unenforceability, prohibition or invalidity, and only with respect to such
person, party, entity or circumstances, without invalidating or limiting or
preventing the enforcement of the remainder of such provision, right or remedy,
or the remaining provisions of this Guaranty, or any other right, remedy,
statement, instrument or transaction contemplated hereby or relating hereto, as
to any other person, party or entity or any other circumstances.

 

13.                                 Lender may arrange for other lenders to
purchase interests in, or to participate with Lender in, the Loan, subject to
any applicable requirements of the Construction Loan Agreement, and Lender
shall be entitled to so assign or otherwise transfer portions of its rights and
obligations under the Construction Loan Agreement, its rights hereunder, and
all information relating to Guarantor which is in Lender’s possession to such
lenders and to retain any compensation received from any such other lender.

 

14.                                 Notwithstanding any other provision or
provisions herein contained, no provision of this Guaranty shall require or
permit the collection from Guarantor of interest in excess of the maximum rate
or amount, if any, which Guarantor may be required or permitted to pay by any
applicable law.

 

15.                                 This Guaranty shall remain in full force and
effect until the earlier of (i) payment of the Note in full, or (ii)
completion of the Improvements in accordance with Section 1 hereof and
thereafter, this Guaranty shall be discharged, null, void and of no further
force and effect. Upon request by Guarantor, Lender will deliver to Guarantor
written confirmation of the discharge of the obligations and liabilities of
Guarantor hereunder, and Lender will return to Guarantor the original
counterpart of this Guaranty. This instrument shall inure to the benefit of
Lender and its successors, assigns and Transferees (as that term is defined in
the Construction Loan Agreement), and shall bind Guarantor and Guarantor’s
successors and assigns. The obligations of Guarantor under this Guaranty shall
be enforceable in all events against Guarantor, its successors and assigns, and
each of them. All capitalized terms used herein and not otherwise expressly
defined herein, shall have the meanings set forth for them in the Construction
Loan Agreement.

 

16.                                 This Guaranty may be waived, modified,
amended, terminated or discharged only explicitly in a writing signed by Lender
and Guarantor. A waiver so signed shall be effective only in the specific
instance and for the specific purpose given.

 

17.                                 Any notice, demand or request by Lender to
Guarantor or from Guarantor to Lender shall be in writing and shall be deemed
to have been duly given or made if either delivered personally or if mailed by
certified or registered mail addressed to the address set forth below (or at
the correct address of any assignee of Lender), except that mailed written
notices shall not be deemed given or served until three (3) days after the date
of mailing thereof:

 

M-8

 

	
  (a)

  	
  If
  to Lender:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Attention:

  	
   

  
	
   

  	
   

  
	
  (b)

  	
  If
  to Guarantor:

  
	
   

  	
   

  
	
   

  	
  Forest
  City Enterprises, Inc.

  
	
   

  	
  50
  Public Square, Ste. 1100

  
	
   

  	
  Cleveland,
  Ohio 44113-2267

  
	
   

  	
  Attention:
  General Counsel

  

 

18.                                 In the event Lender or the holder of the Note
shall assign the Note to any bank or other entity to secure a loan from such
bank or other entity to Lender or such holder for an amount not in excess of
the amount which will be due, from time to time, from Borrower to Lender under
the Note with interest not in excess of the rate of interest which is payable
by Borrower to Lender under the Note, Guarantor will accord full recognition thereto
and agree that all rights and remedies of Lender or such holder hereunder shall
be enforceable against Guarantor by such bank or other entity with the same
force and effect and to the same extent as would have been enforceable by
Lender or such holder but for such assignment.

 

19.                                 If: (i) this Guaranty is placed in the hands
of an attorney for collection or is collected through any legal proceeding;
(ii) an attorney is retained to represent Lender in any bankruptcy,
reorganization, receivership, or other proceedings affecting creditors rights
and involving a claim under this Guaranty; (iii) an attorney is retained to
provide advice or other representation with respect to this Guaranty; or (iv)
an attorney is retained to represent Lender in any proceedings whatsoever in
connection with this Guaranty, then each Guarantor shall pay to lender upon
demand all attorney’s fees, costs and expenses, including, without limitation,
court costs, filing fees, recording costs, expenses of foreclosure, title
insurance premiums, survey costs, minutes of foreclosure, and all other costs
and expenses incurred in connection therewith (all of which are referred to
herein as “Enforcement Costs”), in addition to all other amounts due hereunder,
regardless of whether all or a portion of such Enforcement Costs are incurred
in a single proceeding brought to enforce this Guaranty as well as the other
Loan Documents.

 

20.                                 GUARANTOR HEREBY IRREVOCABLY
SUBMITS TO PERSONAL JURISDICTION IN THE STATE WHERE THE PREMISES IS LOCATED FOR
THE ENFORCEMENT OF THIS GUARANTY AND WAIVES ANY AND ALL PERSONAL RIGHTS TO
OBJECT TO SUCH JURISDICTION FOR THE PURPOSES OF LITIGATION TO ENFORCE THIS
GUARANTY. GUARANTOR HEREBY CONSENTS TO THE JURISDICTION OF EITHER ANY COURT OF
THE STATE WHERE THE PREMISES IS LOCATED OR (IN A CASE INVOLVING DIVERSITY OF
CITIZENSHIP) THE UNITED STATES DISTRICT COURT WHERE THE PREMISES IS LOCATED, IN
ANY ACTION, SUIT, OR PROCEEDING WHICH LENDER MAY AT

 

M-9

 

ANY TIME WISH TO FILE IN CONNECTION WITH THIS GUARANTY OR ANY
RELATED MATTER.  GUARANTOR HEREBY AGREES
THAT AN ACTION, SUIT, OR PROCEEDING TO ENFORCE THIS GUARANTY MAY BE BROUGHT IN
ANY STATE OR FEDERAL COURT IN THE STATE WHERE THE PREMISES IS LOCATED AND
HEREBY WAIVES ANY OBJECTION WHICH SUCH GUARANTOR MAY HAVE TO THE LAYING OF THE
VENUE OF ANY SUCH ACTION, SUIT, OR PROCEEDING IN ANY SUCH COURT; PROVIDED,
HOWEVER, THAT THE PROVISIONS OF THIS PARAGRAPH SHALL NOT BE DEEMED TO PRECLUDE
LENDER FROM FILING ANY SUCH ACTION, SUIT, OR PROCEEDING IN ANY OTHER
APPROPRIATE FORUM.

 

21.                                 This Guaranty may be executed in any number
of duplicate originals and each such duplicate original shall be deemed to
constitute but one and the same instrument. Any signature page of this Guaranty
may be detached from any duplicate original of this Guaranty without impairing
the legal effect of any signatures thereon and may be attached to another
duplicate original of this Guaranty identical in form hereto but having
attached to it one or more additional signature pages.

 

22.                                 GUARANTOR, ADMINISTRATIVE
AGENT AND LENDER HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR
PROCEEDING TO ENFORCE OR DEFEND ANY RIGHT UNDER THIS GUARANTY OR ANY OTHER LOAN
DOCUMENT OR RELATING THERETO OR ARISING FROM THE LENDING RELATIONSHIP WHICH IS
THE SUBJECT OF THIS GUARANTY AND AGREE THAT ANY SUCH ACTION OR PROCEEDING SHALL
BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

 

IN WITNESS WHEREOF, Guarantor has duly executed this Guaranty as of the
day and year first above written.

 

	
   

  	
  FOREST CITY
  ENTERPRISES, INC., an

  Ohio corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

M-10

 

 

 

EXHIBIT N

 

Prohibited Users/Uses

 

N-1

 

Any Person or entity
whose primary business is any of the following:

 

(1)                                  the collection and distribution of news by
one or more of the following media: (a) newspapers, (b) magazines, (c)
internet, (d) television, and/or (e) radio;

 

Any use which includes any of the following:

 

(2)                                  a Person or entity which engages in
governmental lobbying, but not a law firm or public relations firm that engages
in lobbying activity;

 

(3)                                  a “fast food” restaurant at which food is
prepared on-premises and which operates under a national or regional
multi-store food concept such as, by way of example only, McDonald’s, Nathan’s,
Wendy’s, Taco Bell and other similar facilities; but specifically not
including, a specialty eat-in or take out “quick food” establishment that
offers higher quality food such as, by way of example only, Cosi, Starbucks and
other similar facilities;

 

(4)                                  photographic reproductions and/or offset
printing (other than use by office tenants of portions of the premises for
photocopying in connection with their own business and/or activities),
provided, however, the foregoing shall not apply to the Retail Unit if
permitted under DUO;

 

(5)                                  employment agency (other than executive
search firms) or job training center

 

(6)                                  a school or classroom or juvenile or adult
day care or drop in center;

 

(7)                                  medical uses, including without limitation,
hospital, medical or dental offices, agencies, or clinics;

 

(8)                                  an auction house, provided, however, the
foregoing shall not apply to high end auction houses specializing in art and
historical artifacts located in the Retail Unit;

 

(9)                                  gambling activities;

 

(10)                            obscene, pornographic or similar disreputable
activities;

 

(11)                            an agency, department, bureau or controlled
entity of the United States Government, any state or municipality within the
United States, or any political subdivision of any of them, except if such use
is for administrative, executive, professional or technical offices and does
not result in (i) more off-the-street traffic (i.e., without appointments) in
the Building above the ground floor, or (ii) in more pedestrian traffic in the
Building above the ground floor, than would arise, in the case of either clause
(i) or (ii) of this sentence, from normal office occupancy in a first class
office building, and specifically not permitting a welfare or social services
office, homeless shelter or homeless assistance center, court or court-related
facility, parking violations bureau or any other similar purpose;

 

N-2

 

(12)                            an agency, department, bureau or controlled
entity of the United Nations or any foreign government (other than such agency,
department, bureau or controlled entity which is not considered controversial
in the sole and absolute discretion of NYTC), except if such use is for
administrative, executive, professional or technical offices and does not
result in (i) more off-the-street traffic (i.e., without appointments) in the
Building above the ground floor or in demonstrations at the Building, or (ii)
in more pedestrian traffic in the Building above the ground floor, than would
arise, in the case of either clause (i) or (ii) of this sentence, from normal
office occupancy in a first class office building;

 

(13)                            an outlet (except that if a Public Party is
the Unit Owner, in which case a premium outlet shall be acceptable), warehouse,
close-out bargain or any form of “deep discount” store, including, without
limitation, stores whose primary business is the sale or discounting of
merchandise at “closeout,” “wholesale”, “bargain basement”, “warehouse”, or
other similarly discounted prices or the conduct of fire, “going out of
business”, bankruptcy and sheriff or receiver sales;

 

(14)                            a drug or any other type of rehabilitation
center;

 

(15)                            a pawn shop or flea market;

 

(16)                            an arcade for videos or other electronic
games;

 

(17)                            a live entertainment performance space, other
than an eating or drinking establishment where entertainment is included, and
other than as required to satisfy DUO; or

 

(18)                            any use prohibited under DUO or the Unit
Leases.

 

N-3

 

 

EXHIBIT O

 

NYTC
Sublease Guaranty

 

O-1

 

EXHIBIT O

 

[NYTC Sublease Guaranty]

 

GUARANTY

 

THIS GUARANTY (“Guaranty”) is made and entered into as of the        
day of                  ,
20   , by THE NEW YORK TIMES COMPANY, a            
corporation, whose address is 229 West 43rd Street, New York, New
York 10036, Attention:                                
(“Guarantor”), in favor of [FC UNIT OWNER], a                                                               ,
whose address is One MetroTech Center North, Brooklyn, New York 11201,
Attention: General Counsel (“Landlord”).

 

W
I  T  N  E  S  S  E  T  H:

 

WHEREAS:

 

A.                                   Concurrently with execution and delivery of
this Guaranty, Landlord and                               
(“Tenant”) have entered into a Lease (the “Lease”) pursuant to
which Landlord has agreed to lease to Tenant, and Tenant has agreed to lease
from Seller, the “Premises”, as such term is defined in the Lease.

 

B.                                     Guarantor has an interest in Tenant and has agreed
to guaranty the “Guaranteed Obligations” as such term is hereinafter
defined.

 

NOW, THEREFORE, in consideration of the foregoing premises and other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by Guarantor, Guarantor hereby agrees as follows (all
capitalized terms used herein without definition having the meanings ascribed
to them in the Lease):

 

1.                                       (a)                                  Guarantor, for itself, its successors and
assigns, hereby primarily, unconditionally, absolutely and irrevocably
guarantees:

 

(i)                                     the full and faithful keeping, performance
and observance of all the covenants, agreements, terms, provisions and
conditions of the Lease provided to be kept, performed and observed by Tenant
(expressly including, without being limited to, the payment as and when due of
the fixed rent, additional rent, charges and damages payable by Tenant under
the Lease) and the payment of any and all other damages for which Tenant shall
be liable by reason of any act or omission contrary to any of said covenants,
agreements, terms, provisions or conditions;

 

(ii)                                  the full and prompt payment of any
Enforcement Costs (as hereinafter defined in Paragraph 19 hereof).

 

O-1

 

(b)                                 Guarantor represents and warrants that, as of
the date of this Guaranty, Guarantor has a credit rating of “A-minus”(1) or
better as determined by the “Rating Agency” (as such term is defined in that
certain Declaration of Leasehold Condominium governing the real property of
which the Premises forms a part).

 

2.                                       Guarantor guarantees the Guaranteed
Obligations regardless of any law, statute, rule, regulation, decree or order
now or hereafter in effect in any jurisdiction affecting or purporting to
affect in any manner any of the terms or the rights or remedies of Landlord
with respect to the Guaranteed Obligations. The obligations and liabilities of
Guarantor hereunder shall be direct and primary and not indirect or secondary,
and shall be absolute, unconditional and irrevocable. Guarantor’s obligations
hereunder shall not be deemed exonerated, discharged or satisfied, except as
provided in Section 16 hereof.

 

3.                                       If Guarantor fails to promptly perform its
obligations under this Guaranty, Landlord shall, from time-to-time, and without
first attempting to require performance by Tenant, have the right to bring any
action at law or in equity, or both, to compel Guarantor to perform its
obligations hereunder, and/or to collect in any such action compensation for
all losses, costs, expenses, damages and injuries sustained or incurred by
Lender as a direct or indirect consequence of the failure of Guarantor to
perform such obligations. Guarantor shall indemnify and hold Lender free and
harmless from and against any and all loss, damage, cost, expense, injury, or
liability Lender may suffer or incur in connection with the exercise of its
rights under this Guaranty or the performance of the Guaranteed Obligations.

 

4.                                       All of the remedies set forth herein and/or
provided for in the Lease or at law or equity shall be equally available to
Landlord and the choice of one such alternative over another shall not be
subject to question or challenge by Guarantor or any other person, nor shall
any such choice be asserted as a defense, setoff, or failure to mitigate
damages in any action, proceeding, or counteraction by Landlord to recover or
seeking any other remedy under this Guaranty, nor shall such choice preclude
Landlord from subsequently electing to exercise a different remedy. The parties
have agreed to the alternative remedies provided herein in part because they
recognize that the choice of remedies in the event of a default hereunder will
necessarily be and should properly be a matter of good-faith business judgment,
which the passage of time and events may or may not prove to have been the best
choice to maximize recovery by Landlord at the lowest cost to Tenant and/or
Guarantor. It is the intention of the parties that such good-faith choice by
Landlord be given conclusive effect regardless of such subsequent developments.

 

5.                                       Guarantor hereby waives (i) notice of
acceptance of this Guaranty by Landlord and any and all notices and demands of
every kind which may be required to be given by any statute, rule or law, (ii)
any defense, right of set-off or other claim which any Guarantor may have
against Landlord, except for claims of actual payment or actual performance
(iii) presentment for payment, demand for payment, notice of nonpayment or
dishonor, protest and notice of protest, diligence in collection and any and
all formalities which otherwise might be

 

(1) Substitute equivalent rating to “A-Minus” if
Rating Agency is no longer Standard & Poors.

 

O-2

 

legally
required to charge Guarantor with liability, and (iv) any failure by Landlord
to inform Guarantor of any facts Landlord may now or hereafter know about
Tenant or the terms of the Lease, it being understood and agreed that Landlord
has no duty so to inform and that Guarantor is fully responsible for being and
remaining informed by Tenant of all such circumstances bearing on the risk of
nonperformance of the Tenant’s obligation under the Lease. Guarantor agrees
that any claims which Guarantor may have against Tenant must be brought in a
separate action, which action shall not be consolidated with any action brought
by Landlord, unless such consolidation is required by law. Landlord shall have
no obligation to disclose or discuss with Guarantor its assessment of the
financial condition of Tenant. Guarantor acknowledges that no representations
of any kind whatsoever have been made to it by Landlord. No modification or
waiver of any of the provisions of this Guaranty shall be binding upon Landlord
except as expressly set forth in a writing duly signed and delivered on behalf
of Landlord.

 

6.                                       Guarantor further agrees that Guarantor’s
liability as guarantor shall in nowise be impaired or affected by any
extensions which may be made from time to time, with or without the knowledge
or consent of Guarantor, of the time for performance by Tenant under the Lease
or by any forbearance or delay in enforcing same, or by way of waiver by
Landlord under the Lease. Landlord’s failure or election not to pursue any
other remedies it may have against Tenant, Guarantor, or by virtue of any
change or modification in the Lease or by the acceptance by Landlord of any
additional security or any increase, substitution or change therein, or by the
release by Landlord of any security or any withdrawal thereof or decrease therein,
or by the application of payments received from any source to the payment of
any obligation other than the Guaranteed Obligations, even though Landlord
might lawfully have elected to apply such payments to any part or all of the
Guaranteed Obligations, it being the intent hereof that Guarantor shall remain
liable as principal for payment and/or performance of the Guaranteed
Obligations until the Guaranteed Obligations have been paid or performed in
full and notwithstanding any act or thing which might otherwise operate as
legal or equitable discharge of a surety. Guarantor further understands and
agrees that Landlord may at any time enter into agreements with Tenant to amend
and modify the Lease and may waive or release any provision or provisions of the
Lease, and, with reference to such instruments, may make and enter into any
such amendments or agreements as the parties thereto may deem proper and
desirable, and may apply any monies received by Landlord, regardless of the
purpose for which the same was given to Landlord to cure any default or to
apply on account of the Guaranteed Obligations, in such order and priority as
Landlord, in its sole discretion, may require without in any manner impairing
or affecting this Guaranty or any of Landlord’s rights hereunder or Guarantor’s
obligations hereunder.

 

7.                                       Guarantor hereby acknowledges having
received, reviewed and understood a true, correct and complete copy of the
Lease. Guarantor acknowledges that this Guaranty is in effect and binding
without reference to whether this Guaranty is signed by any other person or
entity, that possession of this Guaranty by Landlord shall be conclusive
evidence of due delivery hereof by Guarantor and acceptance hereof by Landlord,
and that this Guaranty shall continue in full force and effect, both as to
guaranteed obligations and liabilities now existing and/or those hereafter
created.

 

O-3

 

8.                                       Guarantor hereby consents and agrees that,
without any further notice to, or consent or agreement of, Guarantor (a)
Landlord make take, hold, exchange, enforce, waive, surrender and/or release
other guarantees, collateral or security which further secure(s) payment and/or
performance of this Guaranty or the Lease, and (b) that any of the obligations,
terms, covenants and conditions contained in the Lease (including, but not
limited to, Tenant’s obligations thereunder) may be renewed, altered, extended,
changed, modified, supplemented or released at Landlord’s written direction, or
with Landlord’s written consent, without in any manner affecting this Guaranty
or releasing Guarantor herefrom, and without the further consent of or notice
to Guarantor, and Guarantor shall continue to be liable hereunder to pay and
perform pursuant hereto notwithstanding any such renewal, alteration,
extension, change, modification, supplement or release, or the taking, holding,
exchanging, enforcing, waiving, surrender and/or release of such other
guarantees, collateral or security. Landlord may perfect or fail to perfect, or
to continue the perfection of, any lien or security interest without notice to,
consideration to or the consent of Guarantor, and without in any way releasing,
diminishing or affecting the absolute nature of Guarantor’s obligations and liabilities
hereunder.

 

9.                                       Guarantor hereby waives any and all legal
requirements that Landlord, or its successors or assigns, must institute any
action or proceeding at law or in equity, or obtain any judgment, or exhaust
their rights, remedies and/or recourses against Tenant or any other person or
entity, or with respect to any security for the obligations hereby guaranteed,
as a condition precedent to making any demand on, bringing an action against,
or obtaining or enforcing any judgment against, Guarantor upon this Guaranty,
and/or that it join Tenant or any other person or entity as a party to any such
action. All remedies afforded to Landlord, and its successors or assigns, by
reason of this Guaranty, are separate and cumulative remedies, and it is agreed
that no one of such remedies, whether or not exercised by Landlord, or its
successors or assigns, shall be deemed in exclusion of any of the other
remedies available to Landlord or its successors or assigns, at law, in equity,
by statute, under contract, hereunder or otherwise, and shall in no way limit
or prejudice any such other remedies which Landlord, or its successors or
assigns, may have. Mere delay or failure to act shall not preclude the exercise
or enforcement of any rights and remedies available to Landlord. Guarantor
further waives any requirement that Landlord demand or seek payment or
performance by Tenant or by any other person or entity of the amounts owing or
the covenants to be performed under the Lease, whether hereby guaranteed or not,
as a condition precedent to bringing any action against Guarantor upon this
Guaranty, it being agreed that a failure to comply with or perform the
obligations, terms, covenants and conditions herein guaranteed shall, without
further act, make Guarantor liable as herein set forth.

 

10.                                 This Guaranty is an absolute, unconditional,
present and continuing guaranty of performance of the obligations recited in
Paragraph 1 hereof. Guarantor hereby expressly waives all defenses of Tenant
pertaining to said obligations, except for the defense of discharge by complete
and irrevocable performance, and except for such defenses as would constitute a
defense to Tenant’s obligation under the Lease. Guarantor shall not be released
(a) by any act, omission or thing which might, but for this provision of this
Guaranty, be deemed a legal or equitable discharge of a surety or guarantor,
(b) by any defense based upon any statute or rule of law which provides that
the obligations of a surety or guarantor must be neither larger in amount nor
in other respects more burdensome than those of a principal, or (c) by reason
of any waiver, extension, renewal, modification, forbearance or delay by
Landlord, or its successors or assigns,

 

O-4

 

or
its failure to proceed promptly or otherwise, and Guarantor hereby expressly
waives and surrenders any defense to liability hereunder based upon the
foregoing acts, omissions, things, statutes, rules, waivers, extensions,
modifications, forbearances, delays, obligations, agreements, or any of them,
except the defense of complete and irrevocable performance in full. Guarantor
also waives any defense arising by virtue of any disability, insolvency,
bankruptcy, defect in formation or continuation, lack of authority or power,
death, insanity, incompetence, liquidation or dissolution of, or any cessation
or limitation of liability from any cause (other than full and irrevocable
performance) of, Tenant, any member or agent thereof, or any other surety,
co-maker, endorser or guarantor. No change in the ownership of Tenant or in
Tenant’s members shall affect or change the terms of this Guaranty or in any
way change or reduce the liability of Guarantor hereunder. This Guaranty shall
continue to be effective or be reinstated (as the case may be) if at any time
payment of all or any part of any sum payable pursuant to the Lease or
hereunder is rescinded or otherwise required to be returned upon the
insolvency, bankruptcy, dissolution, liquidation, or reorganization of Tenant,
or upon or as a result of the appointment of a receiver, intervener, custodian
or conservator of or trustee or similar officer for, or any substantial part of
its property, or otherwise, all as though such payment had not been made,
regardless of whether the recipient thereof contested the order requiring the
return of such payment.

 

11.                                 Guarantor hereby expressly agrees that the
liabilities and obligations of Guarantor under this Guaranty shall not in any
way be impaired or otherwise affected by the institution by or against Tenant
or any other person or entity of any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings, or any other similar proceedings for
relief under any bankruptcy law or similar law for the relief of debtors and
that any discharge of any of the obligations and/or liabilities hereby
guaranteed pursuant to any such bankruptcy or similar law or other law shall
not diminish, discharge or otherwise affect in any way the obligations of
Guarantor under this Guaranty, and that upon the institution of any of the
above actions, such obligations shall be enforceable against Guarantor.

 

12.                                 In the event that Guarantor shall advance or
become obligated to pay any sums or incurs any costs or expenses hereunder, or
in the event that for any reason Tenant is now or shall hereafter become
indebted or obligated to Guarantor, the amount of such sum, costs, expenses and
such indebtedness or obligation shall at all times be subordinated as to lien,
time of payment and in all other respects to the amounts owing to Landlord
hereunder. Notwithstanding any payment or payments made, or costs or expenses
incurred, by Guarantor hereunder, Guarantor shall not be entitled to be
subrogated to any of the rights of Landlord against Tenant or any other
guarantor or any collateral security or guaranty held by Landlord for the
payment of the guaranteed obligation, nor shall Guarantor seek or be entitled
to seek any contribution or reimbursement from Tenant or any other guarantor in
respect of payments made, or costs or expenses incurred, by Guarantor hereunder
unless and until the Guaranteed Obligations and any Enforcement Costs shall
have been paid in full. Except as otherwise set forth herein, Guarantor shall
have no right to participate in any way in the right, title or interest of
Landlord in the Premises, or to receive payments from Tenant upon any
indebtedness or obligation, notwithstanding any payments made, or costs or
expenses incurred, by Guarantor hereunder, all rights of reimbursement,
indemnification, subrogation and participation being hereby expressly waived
and released with respect to any such payments, costs and expenses. Guarantor
agrees

 

O-5

 

that,
following any default or event of default-under the Lease, and until the
Guaranteed Obligations thereunder shall have been paid and/or performed in
full, Guarantor will not accept any payment or satisfaction of any kind of any
indebtedness or obligation of Tenant to Guarantor. Further, as long as
Guarantor remains liable hereunder, Guarantor agrees that, if, following any
default or event of default under the Lease, Guarantor should receive any
payment, satisfaction or security for any indebtedness or obligation of Tenant
to Guarantor, the same shall be delivered to Landlord in the form received,
endorsed or assigned as may be appropriate, for application on account of or as
security for the Guaranteed Obligations thereunder, and, until so delivered,
shall be held in trust for Landlord as security for said Guaranteed
Obligations. In addition, at any time, in the event of any receivership,
insolvency, bankruptcy, assignment for the benefit of creditors, reorganization
or arrangement with creditors (whether or not pursuant to bankruptcy laws),
sale of all or substantially all of the assets, dissolution, liquidation or any
other marshaling of the assets and liabilities of Tenant, Landlord shall be
entitled to performance in full of the obligations hereby guaranteed prior to
the payment of all or any part of any indebtedness of Tenant to Guarantor, and
Guarantor will, at the request of Landlord, file any claim, proof of claim or
other instrument of similar character necessary to enforce the obligations of
Tenant in respect of such indebtedness and hereby assigns to Landlord, and will
hold in trust for Landlord, any and all monies, dividends or other assets
received in any such proceeding on account of such obligations, unless and
until the obligations hereby guaranteed shall be irrevocably performed in full.
In the event Guarantor fails to perform said obligations, it shall pay and
deliver said monies, dividends or other assets to Landlord.

 

13.                                 Guarantor hereby warrants and represents unto
Landlord that:

 

(a)                                  there are no actions, suits or proceedings
pending or, to the knowledge of Guarantor, threatened against or affecting
Guarantor, which will have a material adverse impact upon Guarantor’s ability
to perform its obligations hereunder, or involving the validity or
enforceability of this Guaranty, at law or in equity; and Guarantor is not in
default under any order, writ, injunction, decree or demand of any court or any
administrative body having jurisdiction over Guarantor;

 

(b)                                 any and all balance sheets, net worth
statements, income and expense statements, cash flow statements and other
financial statements of, and other financial statements and data relating to,
Guarantor previously or hereafter delivered to Landlord fairly and accurately
present, or will fairly and accurately present, the financial condition of
Guarantor as of the dates thereof; since the dates of those most recently
delivered, there has been no material adverse change in the financial condition
of Guarantor; Guarantor has disclosed all events, conditions, and facts known to
Guarantor which are more likely than not to have a material adverse effect on
the financial condition of Guarantor; and neither this Guaranty nor any
document, financial statement, financial or credit information, certificate or
statement relating to Guarantor and referred to herein, or furnished to
Landlord by Guarantor contains, or will contain, any untrue statement of a
material fact or omits, or will omit, a material fact;

 

(c)                                  Guarantor is a corporation duly organized,
validly existing and in good standing under the laws of the State of New York,
and has all power, authority, permits, consents, authorizations and licenses
necessary to carry on its business, and to execute, deliver

 

O-6

 

and
perform this Guaranty and any other documents or instruments in connection
therewith which it is required to execute; all resolutions of the board of
directors of Guarantor necessary to authorize the execution, delivery and
performance of this Guaranty and such other documents or instruments have been
duly adopted and are in full force and effect; and this Guaranty and such other
documents or instruments have been duly authorized, executed and delivered by
and on behalf of Guarantor so as to constitute this Guaranty and such other
documents or instruments the valid and binding obligation of Guarantor,
enforceable in accordance with their terms.

 

(d)                                 The execution, delivery, and performance by
Guarantor of this Guaranty does not and will not contravene or conflict with (i)
any law, order, rule, regulation, writ, injunction or decree now in effect of
any government, governmental instrumentality court having jurisdiction over
Guarantor, or (ii) any contractual restriction binding on or affecting
Guarantor or Guarantor’s property or assets which may adversely affect
Guarantor’s ability to fulfill its obligations under this Guaranty.

 

14.                                 The validity, construction and enforceability
of this Guaranty shall be governed by the internal laws of the State of New
York, without giving effect to conflict of laws principles thereof. Whenever
possible, each provision of this Guaranty and any other statement, instrument
or transaction contemplated hereby or relating hereto shall be interpreted in
such manner as to be effective and valid under such applicable law, but, if any
provision of this Guaranty or any other statement, instrument or transaction
contemplated hereby or relating hereto or any right or remedy hereby guaranteed
or provided shall be held to be unenforceable, prohibited or invalid under
applicable law as to any person, party or entity or under any circumstances,
for any reason, such provision, right or remedy shall be ineffective only to
the extent of such unenforceability, prohibition or invalidity, and only with
respect to such person, party, entity or circumstances, without invalidating or
limiting or preventing the enforcement of the remainder of such provision,
right or remedy, or the remaining provisions of this Guaranty, or any other
right, remedy, statement, instrument or transaction contemplated hereby or
relating hereto, as to any other person, party or entity or any other
circumstances.

 

15.                                 Notwithstanding any other provision or
provisions herein contained, no provision of this Guaranty shall require or
permit the collection from Guarantor of interest in excess of the maximum rate
or amount, if any, which Guarantor may be required or permitted to pay by any
applicable law.

 

16.                                 This Guaranty shall remain in full force and
effect until payment and/or performance of the Guaranteed Obligations in full,
and thereafter, this Guaranty shall be discharged, null, void and of no further
force and effect. Upon request by Guarantor, Landlord will deliver to Guarantor
written confirmation of the discharge of the obligations and liabilities of
Guarantor hereunder, and Landlord will return to Guarantor the original
counterpart of this Guaranty. This instrument shall inure to the benefit of
Landlord and its successors, assigns, and shall bind Guarantor and Guarantor’s
successors and assigns. The obligations of Guarantor under this Guaranty shall
be enforceable in all events against Guarantor, its successors and assigns, and
each of them.

 

O-7

 

17.                                 This Guaranty may be waived, modified,
amended, terminated or discharged only explicitly in a writing signed by
Landlord and Guarantor. A waiver so signed shall be effective only in the
specific instance and for the specific purpose given.

 

18.                                 Any notice, demand or request by Landlord to
Guarantor or from Guarantor to Landlord shall be in writing and shall be deemed
to have been duly given or made if either delivered personally or if mailed by
certified or registered mail addressed to the address set forth below (or at
the correct address of any assignee of Landlord), except that mailed written
notices shall not be deemed given or served until three (3) days after the date
of mailing thereof:

 

(a)                                  If to Guarantor:

 

The New York Times Company

229 West 43rd Street

New York, New York 10036

Attention:

 

with a copy to:

 

The New York Times Company

229 West 43rd Street

New York, New York 10036

Attention:     General Counsel

 

with a copy to:

 

Swidler Berlin Shereff Friedman, LLP

405 Lexington Avenue

New York, New York 10174

Attention: Martin D. Polevoy, Esq.

 

(b)                                 If to Landlord:

 

[                                    ]

One MetroTech Center North

Brooklyn, New York 11201

Attention: General Counsel

 

with a copy to:

 

Kelley Drye & Warren LLP

101 Park Avenue

New York, New York 10178

Attention: James J. Kirk, Esq.

 

O-8

 

19.                                 If: (i) this Guaranty is placed in the hands
of an attorney for collection or is collected through any legal proceeding;
(ii) an attorney is retained to represent Landlord in any bankruptcy, reorganization,
receivership, or other proceedings affecting creditors’ rights and involving a
claim under this Guaranty; (iii) an attorney is retained to provide advice or
other representation with respect to this Guaranty; or (iv) an attorney is
retained to represent Landlord in any proceedings whatsoever in connection with
this Guaranty, then each Guarantor shall pay to Landlord upon demand all
attorney’s fees, costs and expenses, including, without limitation, court
costs, filing fees, recording costs, expenses of foreclosure, title insurance
premiums, survey costs, minutes of foreclosure, and all other costs and
expenses incurred in connection therewith (all of which are referred to herein
as “Enforcement Costs”), in addition to all other amounts due hereunder,
regardless of whether all or a portion of such Enforcement Costs are incurred
in a single proceeding brought to enforce this Guaranty.

 

20.                                 Guarantor hereby irrevocably submits to
personal jurisdiction in the state of New York, City and County of New
York for the enforcement of this Guaranty and waives any and all personal
rights to object to such jurisdiction for the purposes of litigation to enforce
this Guaranty. Guarantor hereby consents to the jurisdiction of either any
court in such city, county and state or (in a case involving diversity of
citizenship) the United States District Court located there, in any action,
suit, or proceeding which Landlord may at any time wish to file in connection
with this guaranty or any related matter. Guarantor hereby agrees that an
action, suit, or proceeding to enforce this Guaranty may be brought in any
state or federal court therein located and hereby waives any objection which
such guarantor may have to the laying of the venue of any such action, suit, or
proceeding in any such court; provided, however, that the provisions of this
paragraph shall not be deemed to preclude Landlord from filing any such action,
suit, or proceeding in any other appropriate forum.

 

21.                                 This Guaranty may be executed in any number
of duplicate originals and each such duplicate original shall be deemed to
constitute but one and the same instrument. Any signature page of this Guaranty
may be detached from any duplicate original of this Guaranty without impairing
the legal effect of any signatures thereon and may be attached to another
duplicate original of this Guaranty identical in form hereto but having
attached to it one or more additional signature pages.

 

22.                                 Guarantor and Landlord hereby waive any right
to a trial by jury in any action or proceeding to enforce or defend any right
under this Guaranty or relating thereto or arising from the relationship which
is the subject of this Guaranty and agree that any such action or proceeding
shall be tried before a court and not before a jury.

 

	
  Dated:

  	
   

  	
   

  
	
   

  
	
   

  
	
   

  	
  THE NEW YORK TIMES
  COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
						

 

O-9

 

 

EXHIBIT P

 

NYT Real Estate
Company LLC Lease

 

P-1

 

Lease

 

between

 

                                              ,
Landlord,

 

 

and

 

 

                                              , Tenant

 

 

Date:                     

 

 

Premises:

 

The New York Times Building Condominium

[Portion of] Units
                      

 

 

TABLE
OF CONTENTS

 

	
  ARTICLE 1 Term and Fixed Rent

  	
   

  
	
  ARTICLE 2 Delivery and Use of Premises

  	
   

  
	
  ARTICLE 3 Escalations

  	
   

  
	
  ARTICLE 4 Security Deposit

  	
   

  
	
  ARTICLE 5 Subordination, Notice to Lessor
  under the Unit Lease and Mortgagees

  	
   

  
	
  ARTICLE 6 Quiet Enjoyment

  	
   

  
	
  ARTICLE 7 Assignment and Subletting

  	
   

  
	
  ARTICLE 8 Compliance with Laws

  	
   

  
	
  ARTICLE 9 Insurance

  	
   

  
	
  ARTICLE 10 Condominium Provisions

  	
   

  
	
  ARTICLE 11 Alterations

  	
   

  
	
  ARTICLE 12 Landlord’s and Tenant’s Property

  	
   

  
	
  ARTICLE 13 Repairs and Maintenance

  	
   

  
	
  ARTICLE 14 Electricity

  	
   

  
	
  ARTICLE 15 Landlord’s Services

  	
   

  
	
  ARTICLE 16 Access

  	
   

  
	
  ARTICLE 17 Notice of Occurrences

  	
   

  
	
  ARTICLE 18 Indemnification

  	
   

  
	
  ARTICLE 19 Damage or Destruction

  	
   

  
	
  ARTICLE 20 Eminent Domain

  	
   

  
	
  ARTICLE 21 Surrender

  	
   

  
	
  ARTICLE 22 Conditions of Limitation

  	
   

  
	
  ARTICLE 23 Reentry by Landlord

  	
   

  
	
  ARTICLE 24 Damages

  	
   

  
	
  ARTICLE 25 Affirmative Waivers

  	
   

  
	
  ARTICLE 26 No Waivers

  	
   

  
	
  ARTICLE 27 Curing Defaults

  	
   

  
	
  ARTICLE 28 Broker

  	
   

  
	
  ARTICLE 29 Notices

  	
   

  
	
  ARTICLE 30 Estoppel Certificates

  	
   

  
	
  ARTICLE 31 Memorandum of Lease

  	
   

  
	
  ARTICLE 32 No Representations by Landlord

  	
   

  
	
  ARTICLE 33 Hazardous Materials

  	
   

  
	
  ARTICLE 34 Miscellaneous Provisions and
  Definitions

  	
   

  
	
  ARTICLE 35 Arbitration

  	
   

  
	
  ARTICLE 36 Extension of Term Options

  	
   

  

 

 

EXHIBITS

 

	
  Exhibit A –

  	
  Land

  	
   

  
	
  Exhibit B –

  	
  Certificate of Occupancy

  	
   

  
	
  Exhibit C –

  	
  Rentable Square Feet Measurement Standard

  	
   

  
	
  Exhibit D –

  	
  Form of Letter of Credit

  	
   

  
	
  Exhibit E –

  	
  Mortgagee SNDA

  	
   

  
	
  Exhibit F –

  	
  Unit Lease SNDA

  	
   

  
	
  Exhibit G –

  	
  Exclusive Use Rights of Other Tenants

  	
   

  
	
  Exhibit H –

  	
  HVAC Specifications

  	
   

  
	
  Exhibit I –

  	
  Building Standards

  	
   

  
	
  Exhibit J –

  	
  Cleaning Specifications

  	
   

  
	
  Exhibit K –

  	
  Form of Guaranty

  	
   

  
	
  Exhibit L –

  	
  Form of Confidentiality Agreement

  	
   

  
	
  Exhibit M –

  	
  Building Systems

  	
   

  

 

 

LEASE (this “Lease”), dated as of
                            ,
2     , between                                                              ,
having an office at                                                                                                                                                                                         
(“Landlord”) and
                                                                                                                                                                    ,
having an office at                                                                                                                                                                                                   
(“Tenant”).

 

WHEREAS,

 

1. 
                                                               
(the “Ground Lessor”) is (i) the fee owner of the Land, (ii) the lessor and
lessee under the Ground Lease, and (iii) the lessor under the Unit Lease, and

 

2.  Landlord is the lessee under
the Unit Lease (as hereinafter defined) and desires to sublease to Tenant and
Tenant desires to hire from the Landlord, the Premises, on the terms and
conditions hereinafter set forth,

 

NOW THEREFORE, Landlord and Tenant do hereby covenant and agree as
follows:

 

Definitions

 

For purposes of this Lease, the following terms
shall have the respective meanings hereinafter specified, such definitions to
be applicable equally to the singular and plural forms of such terms:

 

“AAA” shall have the meaning ascribed to such term in Sections 3.03(d)(iv);

“ADA” shall have the meaning ascribed to such term in Section 2.01(e);

“Additional Charges” shall have the meaning ascribed to such term
in Section 1.04(a);

“Alteration” shall have the meaning ascribed to such term in Section 11.01;

“Appointment Date” shall have the meaning ascribed to such term
in Section 35.01;

“Arbiter” shall have the meaning ascribed to such term in
Section 3.03(d)(iv);

“Arbitration Notice” shall have the meaning ascribed to such term
in Section 35.01;

“Assignment Recapture Offer Notice” shall have the meaning ascribed to such term
in Section 7.01(b);

“Assignment Recapture Period” shall have the meaning ascribed to such term
in Section 7.01(b);

“Base Building Elements” shall have the meaning ascribed to such term
in Section 19.04(a);

“Base Building Restoration Estimate” shall have the meaning ascribed to such term
in Section 19.04(a);

“Base Operating Amount” shall have the meaning ascribed to such term
in Section 3.01(a);

“Base Operating Year” shall have the meaning ascribed to such term
in Sections 3.01(b);

“Base Rate” shall have the meaning ascribed to such term in Section 34.05(j);

“Base Tax Amount” shall have the meaning ascribed to such term
in Sections 3.01(c);

“Basic Restoration” shall have the meaning ascribed to such term
in Section 19.02;

“Board SNDA” shall have the meaning ascribed to such term in Section 10.01;

 

1

 

“Building” shall have the meaning ascribed to such term in Section 1.01;

“Building Systems” shall have the meaning ascribed to such term in Section 8.01(c);

“Business Days” shall have the meaning ascribed to such term in Section 15.01(b);

“Business Hours” shall have the meaning ascribed to such term in Section 15.01(b);

“By-Laws” shall have the meaning ascribed to such term in Section 1.01;

“Cleaning Cost Reduction” shall have the meaning ascribed to such term
in Section 15.01(a);

“Commencement Date” shall have the meaning ascribed to such term in Section 1.05;

“Comparable Buildings” shall have the meaning ascribed to such term
in Section 13.04(a);

“Comparable Space” shall have the meaning ascribed to such term in Section 7.05(c);

“Condominium” shall have the meaning ascribed to such term in Section 1.01;

“Confidentiality Agreement” shall have the meaning ascribed to such term
in Section 3.03(d);

“Consumer Price Index” shall have the meaning ascribed to such term
in Section 34.05(k);

“Court” shall have the meaning ascribed to such term in Section 35.01;

“Date of the Taking” shall have the meaning ascribed to such term
in Section 20.01;

“Declaration” shall have the meaning ascribed to such term in Section 1.01;

“Defects Notice” shall have the meaning ascribed to such term in Section 2.01(c);

“Event of Default” shall have the meaning ascribed to such term in Section 22.02;

“Existing Mortgage” shall have the meaning ascribed to such term in Section 5.04(b);

“Expedited Arbitration” shall have the meaning ascribed to such term
in Section 35.04;

“Expiration Date” shall have the meaning ascribed to such term in Section 1.03;

“Extension Notice” shall have the meaning ascribed to such term in Section 36.01(a);

“Extension Term” shall have the meaning ascribed to such term in Section 36.01(a);

“Fair Market Rent” shall have the meaning ascribed to such term in Section 1.04(b);

“FC Office Units” shall have the meaning ascribed to such term in Section 3.01(e);

“First Adjustment Date” shall have the meaning ascribed to such term
in Section 1.04(b);

“Fixed Rent” shall have the meaning ascribed to such term in Section 1.04(a);

“Food Service Facility” shall have the meaning ascribed to such term
in Section 15.05;

“Force Majeure Causes” shall have the meaning ascribed to such term
in Section 34.04(a);

“Ground Lease” shall have the meaning ascribed to such term in Section 5.04(a);

“Ground Lessor” shall have the meaning ascribed to such term in the Preamble;

“Hazardous Materials” shall have the meaning ascribed to such term
in Section 33.03;

“Improvements Demolition Work” shall have the meaning ascribed to such term
in Section 19.01(a);

“Improvements Restoration Work” shall have the meaning ascribed to such term
in Section 19.01(a);

“Index Month” shall have the meaning ascribed to such term
in Section 11.01;

“Interest Rate” shall have the meaning ascribed to such term
in Section 34.05(j);

“Land” shall have the meaning ascribed to such term in Section 1.01;

“Landlord” shall have the meaning ascribed to such term in the Preamble and in
Section 34.05(e);

“Landlord Affiliate” shall have the meaning ascribed to such term
in Section 3.01(e);

“Landlord Applicable Cure Period” shall have the meaning ascribed to such term
in Section 27.02;

 

2

 

“Landlord Long-Term Cure Default” shall have the meaning ascribed to such term
in Section 27.02;

“Landlord’s Assignment Recapture Notice” shall have the meaning ascribed to such term
in Section 7.0l(b);

“Landlord’s Casualty Termination Notice” shall have the meaning ascribed to such term
in Section 19.03;

“Landlord’s Rate” shall have the meaning ascribed to such term in Section 14.02(c);

“Landlord’s Restoration Work” shall have the meaning ascribed to such term
in Section 2.01(a);

“Landlord’s Statement” shall have the meaning ascribed to such term
in Section 3.01(d);

“Landlord’s Stoppage Notice” shall have the meaning ascribed to such term
in Section 15.04;

“Latent Defects” shall have the meaning ascribed to such term in Section 2.01(c);

“laws and requirements of any public authorities” shall have the meaning ascribed to such term in Section 34.05(b);

“Legal Requirements” shall have the meaning ascribed to such term
in Section 34.05(l);

“Long-Term Cure Default” shall have the meaning ascribed to such term
in Section 22.02(b);

“Material Alteration” shall have the meaning ascribed to such term
in Section 11.01;

“Material Alterations Request” shall have the meaning ascribed to such term
in Section 11.01;

“mortgage” shall have the meaning ascribed to such term in Section 34.05(a);

“Notices” shall have the meaning ascribed to such term in Section 29.01;

“NYTC Floors” shall have the meaning ascribed to such term in Section 2.01(a);

“Operating Expenses” shall have the meaning ascribed to such term
in Section 3.01(e);

“Operating Payment” shall have the meaning ascribed to such term in Section 3.03(a);

“Operating Year” shall have the meaning ascribed to such term in Section 3.01(f);

“Overtime Freight Elevator/Loading Dock Service” shall have the meaning ascribed to such term
in Section 15.02(c);

“Overtime HVAC Service” shall have the meaning ascribed to such term
in Section 15.02(a);

“Person” shall have the meaning ascribed to such term in Section 34.05(h);

“Premises” shall have the meaning ascribed to such term in Section 1.02;

“Prior Tenant Restoration Work” shall have the meaning ascribed to such term
in Section 2.01(b);

“Qualifying SNDA Agreement” shall have the meaning ascribed to such term
in Section 5.05(c);

“Records” shall have the meaning ascribed to such term in Section 3.03(d);

“Requirements of insurance bodies” shall have the meaning ascribed to such term
in Section 34.05(c);

“Second Adjustment Date” shall have the meaning ascribed to such term
in Section 1.04(b);

“Section 14.07 Demand” shall have the meaning ascribed to such term
in Section 14.07;

“Secured Areas” shall have the meaning ascribed to such term in Section 16.05;

“Slab Cut Improvements” shall have the meaning ascribed to such term
in Section 2.01(a);

“SNDA Agreement” shall have the meaning ascribed to such term in Section 5.05(a);

“Sublease Profit” shall have the meaning ascribed to such term in Sections 7.07(b);

“Sublease Term” shall have the meaning ascribed to such term in Section 7.07(b);

“Substantially” shall have the meaning ascribed to such term in Section 3.03(d);

 

3

 

“Successor Landlord” shall have the meaning ascribed to such term
in Section 5.03;

“Superior Lease” shall have the meaning ascribed to such term in Section 5.01;

“Superior Lessor” shall have the meaning ascribed to such term in Section 5.01;

“Superior Mortgage” shall have the meaning ascribed to such term in Section 5.01;

“Superior Mortgagee” shall have the meaning ascribed to such term
in Section 5.01;

“Systems Defects” shall have the meaning ascribed to such term in Section 2.01(c);

“Tax Adjustment Date” shall have the meaning ascribed to such term
in Section 3.02(a);

“Tax Payment” shall have the meaning ascribed to such term in Section 3.02(a);

“Tax Year” shall have the meaning ascribed to such term in Section 3.01(h);

“Taxes” shall have the meaning ascribed to such term in Section 3.01(g);

“Tenant” shall have the meaning ascribed to such term in the Preamble and in Section 34.05(d);

“Tenant Affiliate” shall have the meaning ascribed to such term in Section 7.01(d);

“Tenant Negotiation Notice” shall have the meaning ascribed to such term
in Section 7.05(c);

“Tenant Shaft Share” shall have the meaning ascribed to such term
in Section 15.05;

“Tenant’s Costs” shall have the meaning ascribed to such term in Sections 7.07(a) and
7.07(c);

“Tenant’s electrical consultant” shall have the meaning ascribed to such term
in Section 14.07;

“Tenant’s Operating Share” shall have the meaning ascribed to such term
in Section 3.01(i);

“Tenant’s Property” shall have the meaning ascribed to such term in Section 12.02;

“Tenant’s Statement” shall have the meaning ascribed to such term
in Section 3.03(d);

“Tenant’s Representative” shall have the meaning ascribed to such term
in Section 3.03(d);

“Tenant’s Tax Share” shall have the meaning ascribed to such term
in Section 3.01(j);

“Then Tenant” shall have the meaning ascribed to such term in Section 7.04;

“Third Adjustment Date” shall have the meaning ascribed to such term
in Section 1.04(b);

“Transfer” shall have the meaning ascribed to such term in Section 34.05(e);

“Transferee” shall have the meaning ascribed to such term in Section 34.05(e);

“Transferor” shall have the meaning ascribed to such term in Section 34.05(e);

“Unit” shall have the meaning ascribed to such term in Section 1.02;

“Unit Lease” shall have the meaning ascribed to such term in Section 5.01;

“Unit Lease SNDA Agreement” shall have the meaning ascribed to such term
in Section 5.05(b);

“Users” shall have the meaning ascribed to such term in Section 7.01(a);

 

ARTICLE 1

Term and Fixed Rent

 

1.01.        Landlord hereby leases to Tenant, and Tenant
hereby hires from Landlord, upon and subject to the terms, covenants,
provisions and conditions of this Lease, the premises described in
Section 1.02 hereof in the building (the “Building”)
known as The New York Times Building, which Building is a leasehold condominium
(the “Condominium”), in the City,
County and State of New York.  The
Building is located on a portion of the land (the “Land”) described in Exhibit
A annexed hereto and made a part hereof.  The Condominium was established pursuant to the Condominium’s
Declaration of Leasehold Condominium
dated                        
and recorded in the New York County Office of the Register of the City of New
York on

 

4

 

                        
in Reel           , Page
           (the “Declaration”) and the By-Laws annexed
thereto (the “By-Laws”).

 

1.02.        (a)   
The Premises (the “Premises”)
leased to Tenant consist of [the entire] [a portion of] the
            
floor(s) of the Building which floor(s) are designated as Unit No(s).
               
of the Condominium (collectively, the “Unit”).  The Unit also consists of an undivided 
[            %]
interest in the Common Elements and the FC Limited Common Elements of the
Condominium (each, as defined in the Declaration).  Landlord hereby grants to Tenant the non-exclusive right to use,
in common with others, the Common Elements and the FC Limited Common
Elements.  The parties agree that the
Premises shall be deemed to contain
                    
rentable square feet for all purposes under this Lease.  The measurement standard for rentable square
feet for the Building and the Premises is set forth on Exhibit C annexed hereto and made a part
hereof.

 

1.03.        The term of this Lease shall be a period of
               
(      ) years(1) which term (a) shall commence
on the Commencement Date (as hereinafter defined) and (b) shall end at 11:59
p.m. on the date (the “Expiration Date”)
which is the day immediately preceding the
               
(           )
anniversary of the Commencement Date, or on such earlier date upon which the
term of this Lease shall expire or be canceled or terminated pursuant to any of
the conditions or covenants of this Lease or pursuant to law.

 

1.04.        (a)           The rents shall be and consist of:

 

(i)            fixed rent (“Fixed
Rent”) at a rate determined in accordance with [Article XX,
Section 5(a), 5(b), 5(c), or 5(d), as applicable, of the Declaration, and
Article XX, Section 8(b) of the Declaration](2), which Fixed Rent
shall be payable commencing on the Commencement Date, in equal monthly
installments in advance on the first day of every calendar month during the
term of this Lease, ***and which Fixed Rent shall be subject to increase or
decrease as of the First Adjustment Date, Second Adjustment Date and Third
Adjustment Date, as such terms are hereinafter defined, as provided in
Section 1.04(b) hereof***; and

 

(ii)           additional rent (“Additional Charges”)
consisting of Tax Payments, Operating Payments and charges for electricity, and
any other utilities furnished to Tenant at Tenant’s request for which Tenant
does not pay on a

 

(1) To be filled in upon exercise of applicable option by NYTC.  Initial term to be ten (10), twenty (20),
thirty (30) or forty (40) years, as elected by NYTC upon exercise of
option.  If NYTC elects initial term of
ten (10) years, Tenant to have three (3) 10-year renewal options pursuant to
Article 36.  If NYTC elects initial
term of twenty (20) years, Tenant to have two (2) 10-year renewal options
pursuant to Article 36.  If NYTC
elects initial term of thirty (30) years, Tenant to have one (1) 10-year
renewal option pursuant to Article 36.

 

(2) Substitute “Section 5.12 of the Operating Agreement” if
applicable.

 

5

 

direct metered basis, and all other sums of money as shall become due
from and payable by Tenant to Landlord pursuant to the provisions of this
Lease;

 

all
to be paid in lawful money of the United States to Landlord at its office in
the United States of America, or such other place in the United States of
America as Landlord shall designate by not less than thirty (30) days prior
written notice to Tenant.

 

***(3)    (b)           The
Fixed Rent shall be subject to adjustment (i.e., either increase or decrease)
effective as of the tenth (10th) anniversary of the Commencement Date (the “First Adjustment Date”), the twentieth
(20th) anniversary of the Commencement Date (the “Second Adjustment Date”), and the thirtieth (30th)
anniversary of the Commencement Date (the “Third
Adjustment Date”), such that (i) the Fixed Rent for the ten (10)
year period beginning on the First Adjustment Date shall be the “Fair Market Rent”, as such term is defined
in Article XX, Section 8(b) of the Declaration, for the Premises as
of the First Adjustment Date, (ii) the Fixed Rent for the ten (10) year period
beginning on the Second Adjustment Date shall be the Fair Market Rent for the
Premises as of the Second Adjustment Date, and (iii) the Fixed Rent for the ten
(10) year period beginning on the Third Adjustment Date shall be the Fair
Market Rent for the Premises as of the Third Adjustment Date.(4)  Fair Market Rent as of the First Adjustment
Date, Second Adjustment Date or Third Adjustment Date, as the case may be,
shall be determined in accordance with Article XX, Section 8(b) of
the Declaration.  In each case, the
twenty (20) day period for the parties to meet and attempt in good faith to
determine Fair Market Rent referred to in the first sentence of
Article XX, Section 8(b) of the Declaration shall commence on the
date which is one-hundred twenty (120) days prior to the First Adjustment Date,
Second Adjustment Date or Third Adjustment Date, as the case may be, and, in
the event the parties do not reach agreement upon Fair Market Rent within said
twenty (20) days, then Fair Market Rent shall be determined by arbitration as
more particularly set forth in Article XX, Section 8(b) of the
Declaration.

 

(c)           Within ten (10) Business Days after written
request by either party following any determination of Fixed Rent as provided
in Section 1.04(a) and/or Section 1.04(b) hereof, the parties shall
enter into a supplemental agreement in recordable form confirming such Fixed
Rent for the applicable period.  In the
event the Fixed Rent for the initial term of this Lease shall not have been
finally determined as of the Commencement Date, Tenant shall pay an amount
equal to Landlord’s determination of the Fixed Rent as set forth in a notice to
Tenant given within twenty (20) days after the date Tenant exercises its option
to lease the Premises as described in Article XX of the Declaration, until
the final determination of Fixed Rent for such initial term has been made.  Within ten (10) Business Days following the
final determination of Fixed Rent for such initial term, (x) Landlord shall
reimburse Tenant the amount by which the Fixed Rent paid by

 

(3) First
Adjustment Date, Second Adjustment Date and Third Adjustment Date – depending
on terms of Lease, one or more of these terms may have to be deleted.

 

(4) 95% of Fair
Market Rent for space leased pursuant to Section 5.12 of the Operating
Agreement.

 

6

 

Tenant
for the period beginning on the Commencement Date and ending on the last day of
the calendar month in which such final determination is made exceeds the Fixed
Rent as finally determined for such period, together with interest on such
excess amount at the Interest Rate, or (y) Tenant shall pay Landlord the amount
by which the Fixed Rent as finally determined for the period beginning on the
Commencement Date and ending on the last day of the calendar month in which
such final determination is made exceeds the amount of Fixed Rent for such
period paid by Tenant, together with interest on such excess amount at the
Interest Rate.  If Landlord does not
reimburse Tenant for any amount due Tenant in accordance with the provisions of
this Paragraph 1.04(c) within such ten (10) Business Day period, Tenant may
offset the amount of Tenant’s overpayment with interest at the Interest Rate
from the date such amount was due Tenant, against the next succeeding
installments of Fixed Rent and Additional Charges.

 

(d)           In the event the Fixed Rent for any
subsequent ten (10) year period shall not have been finally determined as of
the First Adjustment Date, Second Adjustment Date or Third Adjustment Date, as
the case may be, then pending such final determination Tenant shall pay Fixed
Rent at the rate payable hereunder immediately prior to the First Adjustment
Date, Second Adjustment Date or Third Adjustment Date, as the case may be, and
within ten (10) Business Days following the final determination of Fixed Rent
for such ten (10) year period, (x) Tenant shall pay Landlord the amount by
which the Fixed Rent as finally determined for the period beginning on the
applicable Adjustment Date and ending on the last day of the calendar month in
which such final determination is made exceeds the amount of Fixed Rent for
such period paid by Tenant, together with interest on such excess amount at the
Interest Rate, or (y) Landlord shall reimburse Tenant the amount by which the
Fixed Rent paid by Tenant for the period beginning on the applicable Adjustment
Date and ending on the last day of the calendar month in which such final
determination is made exceeds the Fixed Rent as finally determined for such
period, together with interest on such excess amount at the Interest Rate.  If Landlord does not reimburse Tenant for
any amount due Tenant in accordance with the provisions of this Paragraph
1.04(d) within such ten (10) Business Day period Tenant may offset the amount of
Tenant’s overpayment with interest at the Interest Rate from the date such
amount was due Tenant against the next succeeding installments of Fixed Rent
and Additional Charges.

 

1.05.        For purposes of this Lease, the term “Commencement Date” shall mean [the date
vacant possession of the Premises is delivered to Tenant in accordance with the
provisions of this Lease] or [actual date, if known].

 

1.06.        Tenant covenants and agrees to pay Fixed Rent
and Additional Charges promptly when due without notice or demand therefor and
without any abatement, deduction or setoff for any reason whatsoever, except as
may be expressly provided in this Lease.

 

1.07.        If the Commencement Date occurs on a day
other than the first day of a calendar month, or if the Expiration Date occurs
on a day other than the last day of a calendar month, the Fixed Rent and
Additional Charges for the partial calendar month shall be prorated.

 

7

 

1.08.        No payment by Tenant or receipt or acceptance
by Landlord of a lesser amount than the correct Fixed Rent or Additional
Charges shall be deemed to be other than a payment on account, nor shall any
endorsement or statement on any check or any letter accompanying any check or
payment be deemed an accord and satisfaction, and Landlord may accept such
check or payment without prejudice to Landlord’s right to recover the balance
or pursue any other remedy in this Lease or at law provided.

 

1.09.        If any Fixed Rent or Additional Charges
payable by Tenant to Landlord pursuant to the provisions of the Lease are not
paid within two (2) days following the date due, Tenant shall pay interest
thereon from the date when such installment of Fixed Rent or Additional Charges
became due to the date of Landlord’s receipt thereof at the lesser of (i) the
Interest Rate, or (ii) the maximum rate permitted by law, until paid in full.

 

ARTICLE 2

Delivery and Use of Premises

 

2.01.        (a)           On
or before the Commencement Date, Landlord shall, at Landlord’s sole cost and
expense, perform the following work in and to the Premises (collectively, “Landlord’s Restoration Work”) (i) remove
any internal staircases, elevators and escalators, atriums, internal vertical
transportation systems and other slab cuts and associated equipment and
improvements (collectively, “Slab Cut
Improvements”) between the Premises and any other floors of the
Building not currently owned or occupied by (or currently being acquired or
leased by) Tenant or an affiliate of The New York Times Company (the “NYTC Floors”) and restore the portions of
the floor slab of the Premises affected by such Slab Cut Improvements to their
original condition and level and ready for floor covering, and (ii) disconnect
or segregate any special services (e.g., any other tenant’s supplemental HVAC
system) which service both the Premises and other space in the Building other
than NYTC Floors.(5)  Tenant may waive
the performance by Landlord of any Landlord’s Restoration Work by written
notice to Landlord given within ten (10) Business Days after the date of this
Lease, in which event Landlord shall not perform and shall have no obligation
to Tenant on account of, the Landlord’s Restoration Work so waived by
Tenant.  If and to the extent Landlord’s
Restoration Work not so waived by Tenant is not complete as of the Commencement
Date, Tenant shall receive a credit against the first installments of Fixed
Rent and Additional Charges due hereunder (until such credit is exhausted) for
the estimated cost of completing such Landlord’s Restoration Work as estimated
by a reputable contractor designated by Tenant and approved by Landlord, such
approval not to be unreasonably withheld, delayed or conditioned.  Subject to the provisions of this
Section 2.01 and Section 13.04 hereof, the Premises shall be demised
in their “AS IS” condition on the date of this Lease and Tenant shall accept
the same as such, provided that all services which Landlord is required to
provide to Tenant and the

 

(5) If and for so
long as Ground Lessor is (A) the “Landlord” under this Lease and (B) a
governmental entity or a public benefit corporation, Section 2.01 will
provide that in lieu of performing Landlord’s Restoration Work, Tenant will
receive the credit described in this section.

 

8

 

Premises
are provided in accordance with the provisions of this Lease.  Furthermore, the building systems set forth
in Exhibit M shall, as of the Commencement Date, be in good working order and
condition to the standard then prevailing for comparable premium first class
midtown Manhattan office buildings.

 

(b)           Landlord has advised Tenant that the
following current or prior tenants of the Premises have obligations under their
leases to perform removal and/or restoration work with respect to any existing
leasehold improvements in the Premises: [IDENTITY OF TENANT(S) AND NATURE OF REMOVAL/RESTORATION
OBLIGATION TO BE INSERTED PRIOR TO EXECUTION]  (“Prior
Tenant Restoration Work”). 
Promptly after the date hereof, Landlord shall notify such tenants of
the foregoing removal/restoration obligations and shall use commercially
reasonable efforts to enforce such obligations and to have such Prior Tenant
Restoration Work completed prior to the Commencement Date(6)  On the Commencement Date, Landlord shall
assign to Tenant all of Landlord’s rights and remedies against such tenants
with respect to such removal/restoration obligations.  Landlord shall cooperate with Tenant to the extent reasonably
requested by Tenant in connection with the enforcement of such rights and
remedies and Landlord shall within 20 days after demand reimburse Tenant for
the actual cost (without profit or markup) to Tenant in connection with the
enforcement of such rights and remedies. 
Tenant may waive the performance by Landlord of any Prior Tenant’s
Restoration Work by written notice to Landlord given within ten (10) Business
Days after the date of this Lease, in which event Landlord shall have no
obligation to Tenant on account of, the Prior Tenant’s Restoration Work so
waived by Tenant.  The provisions of
this subsection 2.01(b) shall not be deemed to relieve Landlord of the
obligation to perform Landlord’s Restoration Work.

 

(c)           The taking of possession by Tenant of any
portion of the Premises for the performance of Alterations or for any other
reason whatsoever shall be deemed an acceptance of such portion of the
Premises, other than defects in the HVAC, electrical, mechanical, plumbing and
other systems of the Building (“Systems
Defects”) and latent defects in the Premises (“Latent Defects”), which in either case are
reported by Tenant to Landlord within twelve (12) months after Tenant first
occupies the Premises for the conduct of Business (a “Defects Notice”).  If Tenant gives a Defects Notice, the taking of possession of the
Premises by Tenant shall be deemed an acceptance of the Premises except with
respect to the items set forth on such Defects Notice.  Landlord shall repair the defects set forth
on any Defects Notice delivered to Landlord within the foregoing twelve (12)
month period promptly following delivery of same to Landlord.

 

(d)           Nothing contained in this Section 2.01
shall be deemed to relieve Landlord of its obligation to observe or perform any
term, covenant or condition of this Lease on the part of Landlord to be
observed or performed.

 

(6) If and for so
long as Ground Lessor is (A) the “Landlord” under this Lease and (B) a
governmental entity or a public benefit corporation, this sentence shall not be
applicable.

 

9

 

(e)           Landlord hereby covenants and agrees with Tenant
that, on the Commencement Date, the core bathroom located on each of the floor
of the Premises and all other common areas and facilities of the Unit which
affect Tenant’s access to, or use or enjoyment of the Premises (including, for
example, all elevators and elevator call buttons) are in compliance with the
Americans with Disabilities Act of 1990 (hereinafter called the “ADA”) and New York City Local Law No. 58
and all other state and local laws relating to accessibility, and the
regulations promulgated pursuant to any of the foregoing, in effect as of the
date hereof.(7)

 

2.02.        (a)           Landlord
represents and warrants to Tenant that the terms of any existing leases,
subleases licenses or other agreements for the use and occupancy of the
Premises have expired or expire on or before the Commencement Date and are not
subject to extension or renewal by the tenant, subtenant, licensee or occupant
thereunder.  Possession of the Premises
shall be delivered to Tenant on or before the Commencement Date vacant and free
and clear of all leases, tenancies, subtenancies, licenses or other rights to
use or occupy the Premises, subject to the provisions of Section 2.02(b).

 

(b)           If for any reason whatsoever, Landlord shall
be unable to deliver vacant possession of the Premises on the date hereinabove
set forth as the Commencement Date, then notwithstanding anything to the
contrary hereinbefore contained, the term of this Lease shall commence on, and
the Commencement Date shall be, the date on which Landlord is able to so
deliver vacant possession of the Premises. 
Landlord shall not be subject to any liability for failure to give
vacant possession of the Premises on the date hereinabove set forth as the
Commencement Date (except to the extent that the same arises out of a breach of
any of Landlord’s representations or covenants under Section 2.02(a)), and
the validity of this Lease shall not be impaired under such circumstances.  Notwithstanding the foregoing, in the event
that, as of the Commencement Date, any tenant, subtenant, licensee or occupant
is holding over in the Premises, then Landlord shall use its best efforts,
including the immediate commencement and diligent prosecution of holdover
proceedings, to obtain vacant possession of the Premises as expeditiously as possible.  If Landlord has not delivered to Tenant
vacant possession of the Premises within one hundred eighty (180) days after
the originally scheduled Commencement Date and such failure continues for
twenty (20) days following written notice to Landlord, Tenant shall have the
right at any time thereafter (provided such space has not been delivered to
Tenant) to terminate this Lease, and upon such termination this Lease shall be
null and void (other than those provisions hereof which expressly survive a termination
of this Lease), and the parties hereto shall be relieved of all further
obligations and liability under this Lease. 
Tenant hereby waives any right to rescind this Lease under the
provisions of Section 223(a) of the Real Property Law of the State of New
York, and agrees that the provisions of this Article are intended to
constitute “an express provision to the contrary” within the meaning of said
Section 223(a).

 

(7) If and for so
long as the “Landlord” under this Lease is (A)(i) Ground Lessor and (ii) a
governmental entity or a public benefit corporation, or (B) the party who
acquires the interest of the “Landlord” in this Lease from such governmental
entity or public benefit corporation (but not any other party who becomes the
“Landlord” under this Lease), the provisions of subparagraph 2.01(e) shall not
be applicable.

 

10

 

2.03.        (a)           The
Premises may be used for executive and general offices and for purposes
ancillary and incidental thereto, and for any other legal purposes for which
the Unit may be used under the Declaration, and for no other purpose.

 

(b)           Attached hereto as Exhibit B is a copy of the current Certificate of Occupancy
covering the Unit.  Landlord hereby
represents, to the best of Landlord’s knowledge, such Certificate of Occupancy
is in full force and effect.(8)  Subject
to the provisions of this subparagraph 2.03(b) Landlord hereby agrees at all
times during the term of this Lease to keep in full force and effect a
Certificate of Occupancy for the Unit permitting Tenant to use the Premises for
executive and general offices (unless Tenant obtains a modification or
amendment of the Certificate of Occupancy for the Unit changing the permitted
use of the Premises to other than for executive and general offices or Tenant’s
acts or omissions have caused the Certificate of Occupancy for the Unit to be
revoked).  Landlord further agrees that
it will not take any action to reduce the permitted occupancy levels for the
Unit below the currently permitted levels. 
Should any Alterations (hereinafter defined) or Tenant’s use of the
Premises for other than executive and general offices require any modification
or amendment of any Certificate of Occupancy for the Unit, Tenant shall, at its
expense, procure such modification or amendment, and Landlord, at no
out-of-pocket cost to Landlord, shall cooperate with Tenant in connection
therewith (including assisting and/or joining Tenant in any application or
similar instrument), provided that Tenant shall indemnify and hold harmless
Landlord from and against any claims arising in connection with such
cooperation, other than any such claims arising from any incorrect information
provided by Landlord in connection therewith or any conditions at or in the Unit
which are Landlord’s responsibility hereunder, provided however, that in no
event shall the foregoing indemnity relieve Landlord of any obligation of
Landlord hereunder.  If any violation of
any Legal Requirement noted against the Premises or any other portion of the
Unit shall prevent Tenant from obtaining any such modification or amendment to
the Certificate of Occupancy for the Unit then, promptly after Tenant’s request
that Landlord do so, Landlord shall cause such violation to be cured or
otherwise removed of record, except to the extent that such violation (x)
arises solely from Tenant’s use or occupancy of the Premises in violation of
this Article 2 or any Alterations made by Tenant or (y) is not Landlord’s
responsibility to cure pursuant to the provisions of this Lease.

 

(c)           If any governmental license or permit (other
than a Certificate of Occupancy for the Unit) shall be required for the lawful
conduct of Tenant’s business in the Premises, Tenant, at its expense, shall
duly procure and thereafter maintain such license or permit.  Tenant shall at all times comply with the
terms and conditions of each such license or permit.

 

(8) If and for so long as the “Landlord” under this Lease is (A)(i)
Ground Lessor and (ii) a governmental entity or a public benefit corporation,
or (B) the party who acquires the interest of the “Landlord” in this Lease from
such governmental entity or public benefit corporation (but not any other party
who becomes the “Landlord” under this Lease), the provisions of this sentence
shall not be applicable.

 

11

 

ARTICLE 3

Escalations

 

3.01.        The terms defined below shall for the
purposes of this Lease have the meanings herein specified:

 

(a)           “Base Operating Amount” shall mean the Operating Expenses for the
Base Operating Year, subject to adjustment as provided in § 3.03(a).

 

(b)           “Base Operating Year” shall mean the calendar year in which occurs
the Commencement Date.

 

(c)           “Base Tax Amount” shall mean the Taxes, as finally determined,
for the Tax Year in which occurs the Commencement Date, subject to the
adjustment as provided in § 3.02(a).

 

(d)           “Landlord’s Statement” shall mean an instrument or instruments
setting forth for a specified Operating Year, the Operating Payment payable by
Tenant pursuant to this Article 3, including the other information
required by this Lease to be included therein.

 

(e)           “Operating Expenses” shall mean the following expenses incurred by
Landlord or any Landlord Affiliate in respect of the FC Collective Unit (as
defined in the Declaration) (collectively the “FC Office Units”), provided,
however, that if Landlord or any Landlord Affiliate shall sell any units
originally part of the FC Collective Unit to a third party, then expenses paid
or incurred in respect of such units shall not be deemed “Operating Expenses”
from and after the consummation of such sale and the “FC Office Units” shall
not include such units from and after the consummation of a sale.  For purposes of this Lease, the term
“Landlord Affiliate” means a corporation, partnership in limited liability
company or other entity which controls, is controlled by, or is under common
control with Landlord.  For purposes of
this Section 3.01, “control” means the ownership or voting control,
directly or indirectly, of 50% or more of the voting stock, partnership,
membership or similar interest in such entity:

 

(i)            subject to the provisions of item (23) of
this subsection 3.01(e), common charges and special assessments and other
charges assessed against the FC Office Units by the Condominium Board of
Managers and/or the FC Board of Managers (as such terms are defined in the
Declaration), as applicable; provided, however, that any special assessments
which are payable in more than one installment shall be deemed payable in the
maximum number of installments permitted by the Condominium Board of Managers
and the FC Board of Managers, as applicable and only such installments as are
payable during the term of this Lease shall be included in Operating Expenses
and such installments shall be included for the Operating Year in which they
are so payable, regardless of when same are actually paid by Landlord; and

 

12

 

(ii)           To the extent not included in clause (i) of this Section 3.01(e),
the total of all of the reasonable and customary costs and expenses incurred by
Landlord or Landlord Affiliates (provided Landlord has provided Tenant with
prior notice as to the identities of such Landlord Affiliates) with respect to the
repair, replacement, maintenance, operation and/or security of the FC Office
Units and the Building and the services provided to the tenants and other users
or occupants thereof, including without limitation, the cost and expenses
incurred with respect to: (1) salaries, wages, medical, surgical,
hospitalization, insurance (including, without limitation, group life and
disability insurance) of employees of Landlord or Landlord Affiliates, union
and general welfare benefits, pension benefits, retirement plans, severance and
sick day payments, and other fringe benefits of employees of Landlord and
Landlord Affiliates and their respective contractors engaged in such repair,
replacement, maintenance, operation and/or security; (2) payroll taxes, social
security, unemployment, worker’s compensation, uniforms and related expenses
(whether direct or indirect) for such employees; (3) the cost of fuel, gas,
steam, electricity, heat, ventilation, air conditioning, chilled and condenser
water, water, sewer, telephone and other utilities, together with any taxes and
surcharges on, and fees paid in connection with the calculation and billing of
such utilities, (4) the cost of painting and/or decorating all areas of the FC
Office Units excluding, however, any space contained therein which is demised
or to be demised to tenant(s); (5) the cost of fire and extended coverage
insurance, special extended coverage insurance, owner’s protective insurance,
other casualty insurance coverage, boiler and machinery insurance, sprinkler and
apparatus insurance, public liability and umbrella insurance, property damage
insurance, rent or rental value insurance for up to two (2) years rent, plate
glass insurance and other insurance commonly or customarily carried by owners
of premium first class office buildings in the midtown Manhattan (i.e. from 34th
Street to 60th Street, from 1st Avenue to 8th
Avenue), City of New York (“Comparable
Buildings”) or which is required by any Superior Lessor or Superior
Mortgagee; (6) the cost of all supplies, tools, materials and equipment,
whether by purchase or rental, used in the repair, replacement, maintenance,
operation and/or security of the FC Office Units, and any sales and other taxes
thereon; provided, however, that
if under generally accepted accounting principles, consistently applied, any
costs referred to in this clause (ii)(6) are required to be capitalized, same
shall be amortized, including interest thereon at the Base Rate (as hereinafter
defined) in effect as of December 31 of the year in which such alteration
or improvement is made, over a period commencing upon the completion of the
item in question and extending for the useful life of the item in question; (7)
the cost of cleaning, janitorial and security services, including, without
limitation, glass cleaning and garbage and waste collection and/or disposal;
(8) management fees incurred for the management of the FC Office Units, provided, however, that if Landlord or a
Landlord Affiliate is the managing agent of the FC Office Units then the annual
management fee shall be equal to the

 

13

 

then-prevailing market rate of Comparable Buildings; and (9)
commercially reasonable attorneys’ fees and expenses in connection with any
proceeding that may be prosecuted by Landlord to reduce the assessed valuation
of the FC Office Units;

 

(iii)          the cost of any alterations and improvements made by Landlord or
Landlord Affiliates (as contrasted with any such alterations or improvements
which are made by the Condominium Board of Managers or the FC Board of
Managers) to the FC Office Units which are made or installed after the
expiration of the Base Operating Year either (x) by reason of any law enacted
or any governmental rule or regulation issued or any reinterpretation of any
law or governmental rule or regulation issued after the date of this Lease, or
(y) for the reduction of Operating Expenses with respect to the FC Office
Units; provided, however, that if
under generally accepted accounting principles, consistently applied, any costs
referred to in this clause (iii) are required to be capitalized, same shall be
amortized, including interest thereon at the Base Rate in effect as of
December 31 of the year in which such alteration or improvements is made, over
a period commencing upon the completion of the item in question and extending
for the useful life of the item in question.

 

Notwithstanding the foregoing, “Operating Expenses” shall not include,
or there shall be deducted therefrom, as applicable, the following items,
whether or not same are included in common charges and special assessments and
other charges assessed against the FC Office Units by the Condominium Board of
Managers:

 

(1)           interest on and amortization of debts;

 

(2)           the cost of tenant improvements made for new or existing tenant(s) of
the Building or allowances in lieu thereof;

 

(3)           brokerage commissions;

 

(4)           financing or refinancing costs;

 

(5)           the cost of any work or services performed for any tenant of the
Building, whether at the expense of Landlord, the Condominium Board of
Managers, or such tenant, to the extent that such work or services are in
excess of the work or services which Landlord is required to furnish or is
furnishing to Tenant under this Lease at the expense of Landlord;

 

(6)           Taxes or any amounts expressly excluded from the definition of “Taxes”
under Section 3.01(g) hereof;

 

14

 

(7)           the cost of any repairs made to remedy damage to the extent caused by
or resulting from the negligence of Landlord, its agents, servants or
employees, or Landlord Affiliates,

 

(8)           legal or brokerage or finder’s fees or other fees, leasing commissions,
advertising expenses and other costs incurred in leasing or attempting to lease
any portion of the FC Office Units or in connection with placing or refinancing
any mortgages on the FC Office Units;

 

(9)           any funds or money given to any tenants in cash, by offset or
otherwise, or the cost of any work done for any tenants in connection with the
leasing of space in the FC Office Units;

 

(10)         the cost of any items to the extent Landlord or the Condominium Board
of Managers is reimbursed by the proceeds of insurance, condemnation,
warranties, guarantees or otherwise compensated, including items reimbursable
(whether or not paid) by any tenant for specific services performed for such
tenant (other than under operating expense escalation provisions of its lease),

 

(11)         that portion of any cost paid to a Landlord Affiliate which is in
excess of the amount which would be paid in the absence of such relationship;

 

(12)         Salaries and fringe benefits for officers, employees, and executives
above the grade of Building Manager;

 

(13)         financing and refinancing costs in respect of any indebtedness of
Landlord or any Landlord Affiliate, whether secured or unsecured, including,
legal and accounting fees and expenses, prepayment penalties and interest and
amortization payments in connection therewith;

 

(14)         rent, additional rent or other charges payable under any ground or
underlying lease, including, without limitation, the Unit Lease;

 

(15)         costs incurred in connection with the transfer or disposition of direct
or indirect ownership interests in the FC Office Units or Landlord;

 

(16)         the costs of repairs or restoration necessitated by condemnation;

 

(17)         costs incurred in connection with the making or enforcement of leases
or resolution of disputes with tenants, including, without limitation, court
costs, attorneys’ fees and disbursements in connection with any summary
proceedings to dispossess any tenant;

 

15

 

(18)         fines, judgments or awards against Landlord based on Landlord’s
negligence, willful misconduct or criminal act;

 

(19)         general overhead of Landlord’s or the managing agent’s office;

 

(20)         costs resulting from Landlord’s default under any lease or mortgage or
under the Declaration; and

 

(21)         advertising, promotional and public relations expenditures;

 

(22)         costs of installing any specialty facility for use by tenants at the
Building (such as a restaurant or fitness center);

 

(23)         capital expenditures, whether charged as assessments or otherwise,
other than those which:

 

(i)            are required to comply with any laws and
requirements of any public authorities or the requirements of insurance bodies;
or

 

(ii)           are for the reduction of Operating Expenses.

 

No item of expense shall be counted more than once either as an
inclusion in or an exclusion or deduction from Operating Expenses, and any
expense which should be allocated, in accordance with generally accepted
accounting principles, between the Unit, on the one hand, and any other FC
Office Units or any other property owned by Landlord or a Landlord Affiliate,
on the other hand, shall be properly allocated in accordance therewith.  In determining the amount of Operating
Expenses for any Operating Year, including the Base Operating Year, if less
than all of the rentable square footage of the FC Office Units shall have been
occupied by tenant(s) at any time during such Operating Year, Operating
Expenses shall be determined for such Operating Year to be an amount equal to
the expenses which would have been incurred had ninety-five percent (95%) of
all of the rentable square footage of the FC Office Units been occupied by
tenants throughout such Operating Year.

 

(f)            “Operating Year” shall mean each calendar year in which occurs
any part of the term of this Lease following the end of the Base Operating
Year.

 

(g)           “Taxes” shall mean (A) the real estate taxes (or
PILOT in lieu of real estate taxes), assessments and special assessments, and
business improvement district or similar charges, levied, assessed or imposed
upon or with respect to the FC Office Units, by any federal, state, municipal
or other governments or governmental bodies or authorities, and (B) all taxes
assessed or imposed with respect to the rentals payable hereunder other than
general income and gross receipts taxes. 
If at any time during the term of this Lease the methods of taxation prevailing
on the date hereof shall be altered so that in lieu of, or as an addition to or
as a substitute for, the whole or any part of such real estate taxes,
assessments and special assessments

 

16

 

now
imposed on real estate, there shall be levied, assessed or imposed with respect
to the Unit (x) a tax, assessment, levy, imposition, license fee or charge
wholly or partially as a capital levy or otherwise on the rents received
therefrom, or (y) any other such additional or substitute tax, assessment,
levy, imposition, fee or charge, then all such taxes, assessments, levies,
impositions, fees or charges or the part thereof so measured or based shall be
deemed to be included within the term “Taxes” for the purposes hereof, but only
to the extent calculated as if Landlord’s interest in the Unit were Landlord’s
only asset; provided, however, that any such taxes, assessments, levies, fees,
impositions or charges which are “in addition to” (as opposed to “in lieu of”
or “as a substitute for”) taxes otherwise includable in this definition of
Taxes shall only be deemed Taxes if such amounts, from and after the time of
their imposition, shall generally be treated as Taxes in other leases entered
into by Landlord and by landlords of buildings comparable to the Building in
midtown Manhattan.  Any dispute between
Landlord and Tenant as to whether any taxes, assessments, levies, fees,
impositions or charges should be included in Taxes as amounts which are
includable on the basis that they are “in addition to” Taxes in accordance with
the proviso at the end of the immediately preceding sentence shall be
determined by arbitration in accordance with the then-prevailing rules of the
American Arbitration Association in the City of New York.  The term “Taxes”
shall, notwithstanding anything to the contrary contained herein, exclude any
net income, franchise or “value added” tax, inheritance tax or estate tax
imposed or constituting a lien upon Landlord or all or any part of the Unit,
the Land or Building, except to the extent that any of the foregoing are
hereafter assessed against owners or lessors of real property in their capacity
as such (as opposed to any such taxes which are of general applicability).

 

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

 

(i)            “Tenant’s Operating Share” shall mean
      % (which percentage may be adjusted in
accordance with the provisions of Section 3.03(a) hereof), which has been
calculated as a fraction, expressed as a percentage, the numerator of which is
the rentable area of the Premises, which Landlord and Tenant agree is
               
rentable square feet, and the denominator of which is the rentable area of the
FC Office Units, which Landlord and Tenant agree is
               
rentable square feet.

 

(j)            “Tenant’s Tax Share” shall mean shall mean
      % (which percentage may be adjusted in
accordance with the provisions of Section 3.02(a) hereof), which has been
calculated as a fraction, expressed as a percentage, the numerator of which is
the rentable area of the Premises, which Landlord and Tenant agree is
               
rentable square feet, and the denominator of which is the rentable area of the
FC Office Units which are owned by Landlord and/or Landlord Affiliates which Landlord
and Tenant agree is
                  
rentable square feet as of the date of this Lease.

 

3.02.        (a)           If
Taxes payable for any Tax Year, any part of which shall occur during the term
of this Lease, shall exceed the Base Tax Amount, Tenant shall pay to Landlord
as Additional

 

17

 

Charges
for such Tax Year an amount (the “Tax
Payment”) equal to Tenant’s Tax Share of the amount by which the
Taxes for such Tax Year are greater than the Base Tax Amount.  Notwithstanding the provisions of the
foregoing sentence, in the event that Landlord or any Landlord Affiliate (the
identity of whom Landlord has provided Tenant with prior notice) shall sell any
of their condominium units in the FC Office Units to a third party during the
term of this Lease, then, with respect to the calculation of any Tax Payment
required to be made by Tenant from and after the later of: (i) the date of such
sale or (ii) the date that the taxing authority shall designate a separate tax
lot for the portion of the FC Office Units which continue to be owned by
Landlord and/or any Landlord Affiliate and includes the Premises (the “Tax Adjustment Date”)(including any
portion of the Tax Payment for the Tax Year in which such designation is made
accruing after the Tax Adjustment Date), (x) an appropriate reduction in the
Base Tax Amount shall be made by Landlord and Tenant to reflect the amount of
Taxes that were incurred during the Tax Year in which the Commencement Date
occurred with respect to only the portion of the FC Office Units which remain
within the tax lot owned by Landlord and/or any Landlord Affiliate after the
Tax Adjustment Date and (y) an appropriate modification to Tenant’s Tax Share
shall be made by Landlord and Tenant to reflect the reduction in the number of
rentable square feet of area in the FC Office Units after the Tax Adjustment
Date.  Any dispute between Landlord and
Tenant with respect to such reduction or modification shall be determined by
“Expedited Arbitration” (as defined in Article 35 of this Lease).  The Tax Payment for each Tax Year shall be
due and payable in installments in the same manner that Taxes for such Tax Year
are due and payable by Landlord under the Unit Lease, if applicable, or
otherwise to the City of New York. 
Tenant shall pay Tenant’s Tax Share of each such installment within
twenty (20) days after the rendering of a statement therefor by Landlord to
Tenant, which statement shall be rendered by Landlord so as to require Tenant’s
Tax Share of Taxes to be paid by Tenant no more than ten (10) days prior to the
date such Taxes first become due, provided, however, that if a Superior
Mortgagee shall require that Landlord make monthly or other less frequent
periodic escrow payments of Taxes, then Landlord shall so notify Tenant and
effective thirty (30) days following Tenant’s receipt of such notice Tenant’s
Tax Payments shall be made to Landlord in installments at least ten (10) days
before such periodic escrow deposits are due under the terms of such Superior
Mortgage.  The statement to be rendered
by Landlord shall set forth in reasonable detail the computation of Tenant’s
Tax Share of the particular installment(s) being billed (and, upon written
request from Tenant, Landlord shall provide Tenant with a copy of the tax bill
from the taxing authorities relevant to the computation of Tenant’s Tax
Payment).  If there shall be any
increase in the Taxes for any Tax Year, whether during or after such Tax Year,
or if there shall be any decrease in the Taxes for any Tax Year, whether during
or after such Tax Year, the Tax Payment for such Tax Year shall be
appropriately adjusted and paid or refunded, as the case may be, in accordance
herewith.

 

(b)           If Landlord shall receive a refund of the
Taxes for any Tax Year, Landlord shall either pay to Tenant, or permit Tenant
to credit against subsequent payments under this Article, Tenant’s Tax Share of
the net refund (after deducting from such refund the costs and expenses,
including, without limitation, reasonable appraisal and counsel fees of
obtaining same to the extent that the same have not theretofore been paid by
Tenant pursuant to Section 3.02(g)

 

18

 

hereof);
provided, however, such payment to Tenant shall in no event exceed Tenant’s Tax
Payment paid for such Tax Year.

 

(c)           Landlord shall, with respect to each Tax
Year, initiate and pursue in good faith an application or proceeding seeking a
reduction in Taxes or the assessed valuation of the Unit; provided, however,
that Landlord shall not be required to initiate or pursue any such application
or proceeding for any such Tax Year if Landlord obtains with respect to such
Tax Year a letter from a recognized certiorari attorney or consultant that in
such person’s opinion, it would not be advisable or productive to bring such
application or proceeding and a reasonably detailed explanation from such
recognized certiorari attorney or consultant setting forth the basis for such
person’s opinion.

 

(d)           In respect of any Tax Year which begins prior
to the occurrence of the Commencement Date or terminates after the Expiration
Date, the Tax Payment in respect of each such Tax Year or tax refund pursuant
to subdivision (b) above therefor shall be prorated accordingly.

 

3.03.        (a)           For
each Operating Year, subsequent to the Base Operating Year, any part of which
shall occur during the term of this Lease, Tenant shall pay to Landlord as
Additional Charges an amount (“Operating
Payment”) equal to the sum of Tenant’s Operating Share of the amount
by which the Operating Expenses for such Operating Year exceed the Base
Operating Amount.  Notwithstanding the
provisions of the foregoing sentence, in the event that Landlord or Landlord
Affiliates shall sell any of their condominium units in the FC Office Units to
a third party during the term of this Lease, then, with respect to the
calculation of any Operating Payment required to be made by Tenant from and
after the date of such sale (including any portion of the Operating Payment for
the Operating Year in which such sale occurs accruing after the date of such
sale) (x) an appropriate reduction shall be made by Landlord and Tenant in the
Base Operating Amount to reflect the amount of Operating Expenses that were
incurred during the Base Operating Year with respect to only the portion of the
FC Office Units which remain owned by Landlord and Landlord Affiliates after
such sale and (y) an appropriate modification to Tenant’s Operating Share shall
be made by Landlord and Tenant to reflect the reduction in the number of
rentable square feet of area in the FC Office Units after such sale.  Any dispute between Landlord and Tenant with
respect to such reduction shall be determined by Expedited Arbitration.

 

(b)           Landlord may furnish to Tenant, prior to or
following the commencement of each Operating Year a written statement setting
forth in reasonable detail Landlord’s reasonable estimate of the Operating
Payment for such Operating Year.  Such
estimate shall be accompanied by a reasonably detailed explanation of such
increase.  In the event that Tenant
disputes an estimate of the Operating Payment which reflects an increase in
total Operating Expenses for the Building, Tenant shall have the right to
challenge such estimate substantially in the manner set forth in Section 3.03(d)
below.  Tenant shall pay to Landlord on
the first day of each month during the Operating Year in which the Operating
Payment will be due, an amount equal to one-twelfth (l/12th) of Landlord’s reasonable
estimate of the Operating Payment for

 

19

 

such
Operating Year.  If, however, Landlord
shall not furnish any such estimate for an Operating Year or if Landlord shall
furnish any such estimate for an Operating Year subsequent to the commencement
thereof, then until the first day of the month following the month in which
such estimate is furnished to Tenant, Tenant shall pay to Landlord on the first
day of each month an amount equal to the monthly sum payable by Tenant to
Landlord under this Article 3 in respect of the last month of the
preceding Operating Year.  After such
estimate is furnished to Tenant, Landlord shall give notice to Tenant stating
whether the installments of the Operating Payment previously made for such
Operating Year were greater or less than the installments of the Operating
Payment to be made for the Operating Year in which the Operating Payment will
be due in accordance with such estimate, and (A) if there shall be a
deficiency, Tenant shall pay the amount thereof within thirty (30) days after
demand therefor, or (B) if there shall have been an overpayment, Landlord shall
within thirty (30) days of such notice refund to Tenant the amount thereof,
together with interest thereon at the Interest Rate from the date of the payment
to which such refund relates until the date that Landlord shall pay such refund
to Tenant in the event that the Operating Expenses for the preceding Operating
Year shall exceed the Operating Expenses for the Operating Year in which the
Operating Payment will be due in accordance with such estimate.  On the first day of the month following the
month in which such estimate is furnished to Tenant and monthly thereafter
throughout the remainder of such Operating Year Tenant shall pay to Landlord an
amount equal to one-twelfth (l/12th) of the Operating Payment shown on such
estimate.  Landlord may, during each
Operating Year, furnish to Tenant one revised statement of Landlord’s
reasonable estimate of the Operating Payment for such Operating Year, and in
such case, the Operating Payment for such Operating Year shall be adjusted and
paid or refunded or credited as the case may be, substantially in the same
manner as provided in the preceding sentence.

 

(c)           Landlord shall furnish to Tenant a Landlord’s
Statement for each Operating Year within two hundred seventy (270) days after
the end of each Operating Year.  Such
statement shall set forth in reasonable detail the Operating Expenses for such
Operating Year.  If the Landlord’s
Statement shall show that the sums paid by Tenant, if any, under
subsection 3.03(b) exceeded the Operating Payment to be paid by Tenant for
the Operating Year for which such Landlord’s Statement is furnished, Landlord
shall refund to Tenant the amount of such excess, together with interest thereon
at the Interest Rate from the date of the payment to which such refund relates
until the date that Landlord shall pay such refund to Tenant in the event that
Landlord’s estimate of Operating Expenses pursuant to subsection 3.03(b)
exceeded the Operating Expenses for the Operating Year for which such
Landlord’s Statement is furnished; and if the Landlord’s Statement for such
Operating Year shall show that the sums so paid by Tenant were less than the
Operating Payment to be paid by Tenant for such Operating Year, Tenant shall
pay the amount of such deficiency within thirty (30) days after demand
therefor.  If the Landlord’s Statement
for any Operating Year is not delivered to Tenant within one (1) year after the
end of such Operating Year, Tenant shall not be obligated to make the monthly
payment of Operating Expenses until such Landlord’s Statement is delivered to
Tenant in which event, within thirty (30) days after receipt of such Landlord’s
Statement, Tenant shall pay to Landlord any installments of Tenant’s Operating
Payment which were so withheld by Tenant.

 

20

 

(d)           (i)            Tenant,
upon reasonable notice given within one hundred eighty (180) days of the
receipt of such Landlord’s Statement and the execution of a confidentiality
agreement in the form attached hereto as Exhibit L (“Confidentiality Agreement”), may elect to have Tenant’s
designated (in such notice) representative (“Tenant’s
Representative”), which Tenant’s Representative may or may not be an
employee of Tenant (but who shall not be compensated for services on a
contingency or success fee basis), examine such of Landlord’s books and records
(collectively “Records”) as are
relevant to the Landlord’s Statement in question, together with reasonable supporting
data therefor, including applicable Records for the Base Operating Year or Base
Tax Year, as the case may be, such examination to occur during Business Hours
and upon at least ten (10) Business Days prior notice to Landlord, and which
shall commence not later than forty-five (45) days following the date of
Tenant’s notice.  If Tenant shall not
give timely notice under this subsection 3.03(d)(i) with respect to any
Landlord’s Statement it shall be deemed to have waived its right of examination
under this Section 3.03(d)(i) with respect thereto and such Landlord’s
Statement shall be conclusive and binding on Tenant.

 

(ii)           Landlord hereby agrees to maintain and
preserve its Records with respect to each Operating Year for a period of at
least three (3) years following the delivery of Landlord’s Statement with
respect thereto.  Notwithstanding
anything to the contrary contained herein, in the event that any examination
pursuant to subsection 3.03(d)(i) results in a finding of a discrepancy
with respect to any item of Operating Expenses, Tenant, upon reasonable prior
notice given within thirty (30) days after such finding, may elect to have
Tenant’s designated Tenant’s Representative examine or re-examine such of the
Records as are relevant to such item or any other similar item as included in
Landlord Statements for all prior years during the term of the Lease for which
Landlord shall then be retaining Records, as required pursuant to this
subsection 3.03 (d)(ii).(9)

 

(iii)          Tenant shall, at Tenant’s expense, have the
right to obtain copies and/or make abstracts of the Records as it may request
in connection with its verification of any such Operating Statement, subject to
the provisions of the Confidentiality Agreement.

 

(iv)          In the event that Tenant within one hundred
eighty (180) days year from the date on which the Records are all made
available to Tenant, (which period shall be extended by one (1) day for each
day, if any, that Landlord fails to provide Tenant with any additional relevant
information in Landlord’s possession or under Landlord’s control with regard to
the Operating Payment which is reasonably requested by Tenant), shall disagree
with the Landlord’s Statement, then Tenant may, as its sole remedy to adjust
disputes with Landlord concerning a Landlord Statement (except in the event of
Landlord’s fraud), send a written notice (hereinafter called “Tenant’s Statement”) to Landlord of such
disagreement, specifying the basis for Tenant’s disagreement and Tenant’s
determination of the Operating Payment for the year question.

 

(9)           If and for so long as
Ground Lessor is (i) the “Landlord” under this Lease and (ii) a governmental
entity or a public benefit corporation, the provisions of this subparagraph
3.03(d)(ii) shall not be applicable.

 

21

 

Landlord and Tenant shall attempt to adjust such disagreement.  If they are unable to do so within thirty
(30) days, Landlord and Tenant shall designate a certified public accountant
(hereinafter called the “Arbiter”) whose
determination of the Operating Payment for the year in question made in
accordance with this subsection 3.03(d)(iv) shall be binding upon the
parties.

 

If the determination of the Arbiter shall substantially confirm the
determination of Landlord and not substantially confirm the determination of
Tenant, then Tenant shall pay the cost of the Arbiter.  If the determination of the Arbiter shall
substantially confirm the determination of Tenant and not substantially confirm
the determination of Landlord, then Landlord shall pay the cost of the
Arbiter.  In all other events, the cost
of the Arbiter shall be borne equally by Landlord and Tenant.  The term “substantially”
as used herein, shall mean the determination of the Arbiter shall
find a variance of 5% or less in the aggregate of either Landlord’s or Tenant’s
determination, as applicable.

 

The Arbiter shall be a member of an independent certified public
accounting firm having at least three (3) accounting professionals and having
at least ten (10) years of experience in commercial real estate
accounting.  In the event that Landlord
and Tenant shall be unable to agree upon the designation of the Arbiter within
thirty (30) days after receipt of notice from the other party requesting
agreement as to the designation of the Arbiter, which notice shall contain the
names and addresses of two or more certified public accountants who are
acceptable to the party sending such notice (any one of whom, if acceptable to
the party receiving such notice as shall be evidenced by notice given by the
receiving party to the other party within such thirty (30) day period, shall be
the agreed upon Arbiter), then either party shall have the right to request the
American Arbitration Association (the “AAA”)
(or any organization which is the successor thereto) to designate as the
Arbiter a certified public accountant whose determination of the Operating
Payment made in accordance with this subsection 3.03(d)(iv) shall be
conclusive and binding upon the parties, and the cost charged by the AAA (or
any organization which is the successor thereto), for designating such Arbiter,
shall be shared equally by Landlord and Tenant.  In rendering its determination the Arbiter shall not add to, subtract
from or otherwise modify the provisions of this Lease.

 

3.04.        In any case provided in this Article 3
in which Tenant is entitled to a refund, at Landlord’s option, Landlord may, in
lieu of such refund (In any event if Landlord does not refund such amount to
Tenant within 30 days after such amount is due then Tenant may offset such
amount against the next due installment of Fixed Rent and Additional Charges.)
credit against the next installments of Fixed Rent and Additional Charges any
amounts to which Tenant shall be entitled until such credit shall have been
exhausted.  If this Lease shall expire
before any such credit shall have been fully applied, then Landlord shall
refund to Tenant the unapplied balance of such credit within thirty (30) days
after the last day of the term of this Lease.

 

3.05.        Each year during the term of this Lease,
Tenant shall pay to Landlord as an Additional Charge the Theatre Surcharge (as
defined in Section 3.5(a) of the Ground Lease)

 

22

 

which
is charged to the Premises in accordance with the Ground Lease, such payment to
be made within thirty (30) Business Days following Landlord’s invoice to Tenant
therefor.  If the Commencement Date
shall occur on a date other than the first day of a calendar year and/or if the
Expiration Date shall occur on a date other than the last day of a calendar
year, the Theatre Surcharge payable by Tenant for the partial calendar year in
which the Commencement Date or the Expiration Date, as the case may be, occurs,
shall be reduced pro rata to reflect the number of days in the applicable
calendar year that this Lease is in effect.

 

 

 

ARTICLE 4

Security Deposit

 

 

23

 

 

4.01.        Tenant has deposited with Landlord the sum of
one year’s Fixed Rent as security for the full and faithful performance and
observance by Tenant of Tenant’s covenants and obligations under this
lease.  If Tenant defaults in the full
and prompt payment and performance of any of Tenant’s covenants and obligations
under this lease, including, but not limited to, the payment of Fixed Rent and
Additional Charges, and such default continues after the giving of notice and
the expiration of applicable cure periods under this Lease, Landlord may, but
shall not be required to, use, apply or retain the whole or any part of the
security so deposited and the interest accrued thereon, if any, to the extent
required for the payment of any Fixed Rent and Additional Charges or any other
sums as to which Tenant is in default or for any sum which Landlord may expend
or may be required to expend by reason of Tenant’s default in respect of any of
the terms, covenants and conditions of this lease, including, but not limited
to, any damages or deficiency in the reletting of the Premises, whether such damages
or deficiency accrue before or after summary proceedings or other re-entry by
Landlord.  If Landlord shall so use,
apply or retain the whole or any part of the security or the interest accrued
thereon, if any, Tenant shall upon demand immediately deposit with Landlord a
sum equal to the amount so used, applied or retained, as security as aforesaid
failing which Landlord shall have the same rights and remedies as for the
non-payment of Fixed Rent beyond the applicable grace period.  If Tenant shall fully and faithfully comply
with all of Tenant’s covenants and obligations under t this lease, the security
or any balance thereof, to which Tenant is entitled, shall be returned or paid
over to Tenant after the date fixed as the end of this lease and after delivery
to Landlord of entire possession of the Premises.  In the event of any sale, transfer or leasing of Landlord’s
interest in the Building whether or not in connection with a sale, transfer or
leasing of the Land to a vendee, transferee or lessee, Landlord shall have the
right to transfer the unapplied part of the security and the interest thereon,
if any, to which Tenant is entitled, to the vendee, transferee or lessee and
Landlord shall thereupon be released by Tenant from all liability for the return
or payment thereof, and Tenant shall look solely to the new landlord for the
return or payment of the same.  The
provisions of the preceding sentence shall apply to every subsequent sale,
transfer or leasing of the Building, and any successor of Landlord may, upon a
sale, transfer, leasing or other cessation of the interest of such successors
in the Building, whether in whole or in part, pay over any unapplied part of
said security to any vendee, transferee or lessee of the Building and shall
thereupon be relieved of all liability with respect thereto.  Except in connection with a permitted
assignment of this lease, Tenant shall not assign or encumber or attempt to
assign or encumber the monies deposited herein as security or any interest
thereon to which Tenant is entitled, and neither Landlord nor its successors or
assigns shall be bound by any such assignment, encumbrance, attempted
assignment or attempted encumbrance.

 

4.02.        In lieu of cash security required hereunder,
at any time during the term of this Lease, Tenant may, at Tenant’s election,
deposit with Landlord a letter of credit from a bank reasonably acceptable to
Landlord substantially in the form annexed hereto as Exhibit D in the amount of the security required under
Section 4.01 hereof, and simultaneously with delivery of such letter of
credit, the cash security shall be returned to Tenant.(10)

 

(10) Article 4 to
be deleted if (i) Tenant of Lease is NYTC or (ii) Tenant of Lease is an
Affiliate of NYTC and Tenant provides a guaranty from NYTC in the form annexed
hereto as Exhibit K; and, in the event of either (i) or

 

24

 

ARTICLE 5

Subordination, Notice to
Lessor under the Unit Lease and Mortgagees

 

5.01.        Subject to the provisions of Section 5.05
hereof, this Lease, all rights of Tenant hereunder, are and shall be subject
and subordinate to the “Unit Lease” (as such term is defined in the
Declaration), all matters and instruments to which the Unit Lease is
subordinate and to all other ground leases or underleases or mortgages which
may now or hereafter affect the Unit, to each and every advance made or
hereafter to be made under such mortgages, and to all renewals, modifications,
replacements and extensions of the Unit Lease and such mortgages and spreaders
and consolidations of such mortgages. 
This Section 5.01 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 the Unit Lease or
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”.

 

5.02.        Subject to the provisions of any SNDA
Agreement between Tenant and any Superior Mortgagee or Superior Lessor, if any
act or omission of Landlord would give Tenant the right, immediately or after
lapse of a period of time, to cancel or terminate this Lease or to claim a
partial or total eviction (other than a right of cancellation, termination,
abatement or offset specifically provided for in this Lease), Tenant shall not
exercise such right (a) until it has given written notice of such act or
omission to Landlord and each Superior Mortgagee and Superior Lessor whose name
and address shall previously have been furnished to Tenant, and (b) until
the period to which Landlord would be entitled under this Lease or otherwise,
after similar notice, to effect the remedy of such act or omission shall have
elapsed following the giving of such notice and following the time when such
Superior Mortgagee or Superior Lessor shall have become entitled under such
Superior Mortgage or Superior Lease, as the case may be, to remedy the same,
provided such Superior Mortgagee or Superior Lessor shall with due diligence
give Tenant notice of intention to, and commence and continue to, remedy such
act or omission.

 

5.03.        Subject to the provisions of any SNDA
Agreement between any Superior Mortgagee or Superior Lessor, if a Superior
Lessor or any Superior Mortgagee, or any designee of any Superior Lessor or any
Superior Mortgagee, shall succeed to the rights of Landlord under this Lease,
whether through possession or foreclosure action or delivery of a new lease or
deed, then at the request of such party so succeeding to Landlord’s rights (“Successor Landlord”) and upon

 

(ii), NYTC has a credit
rating of A- or better as determined by the Rating Agency (as defined in the
Declaration).

 

25

 

such
Successor Landlord’s written agreement to accept Tenant’s attornment, Tenant
shall attorn to and recognize such Successor Landlord as Tenant’s landlord
under this Lease and shall promptly execute and deliver any instrument that
such Successor Landlord may reasonably request to evidence such attornment.  Upon such attornment this Lease shall
continue in full force and effect as a direct lease between the Successor
Landlord and Tenant upon all of the terms, conditions and covenants as are set
forth in this Lease, the Successor Landlord shall not be:

 

(a)           liable for any accrued obligation of
Landlord, or for any act or omission of Landlord, prior to such foreclosure or
sale, except that such non-liability shall in no way diminish Tenant’s rights
under this Lease with respect to the continuing failure of the Successor
Landlord to perform the obligations of any prior Landlord under this Lease
after the date upon which the Successor Landlord succeeds to the interests of
Landlord under this Lease,

 

(b)           required to perform or provide any services
not expressly set forth in this Lease, or

 

(c)           subject to any offsets (other than offsets
expressly provided for in this Lease), defenses or counterclaims which have
accrued against Landlord prior to the date Successor Landlord succeeds to the
interests of Landlord under this Lease;

 

5.04.        Landlord hereby represents that:(11)

 

(a)           there are no ground, superior or underlying
leases affecting the Premises as of the date hereof other than the Unit Lease
and the “Ground Lease” as such term is defined in the Declaration, and

 

(b)           the only existing Superior Mortgage as of the
date hereof is that certain
                                                                                                                                                                           
(the “Existing Mortgage”).

 

5.05.        (a)           Concurrently
with execution of this Lease, Landlord, Tenant and the Superior Mortgagee under
the existing Superior Mortgage, have executed a subordination, non-disturbance
and attornment agreement (an “SNDA
Agreement”) with respect to the Existing Mortgage substantially in
the form annexed hereto as Exhibit E.

 

(b)           Concurrently with execution of this Lease,
Landlord, Tenant and the Ground Lessor have executed a subordination,
non-disturbance and attornment agreement (the

 

(11) If and for so
long as the “Landlord” under this Lease is (A)(i) Ground Lessor and (ii) a
governmental entity or a public benefit corporation, or (B) the party acquiring
the interest of the “Landlord” in this Lease from such governmental entity or
public benefit corporation (but not any other party who becomes the “Landlord”
under this Lease), the preamble to Section 5.04 shall read “Landlord hereby
represents that to Landlord’s knowledge:”

 

26

 

“Unit Lease SNDA Agreement”) with respect to the Unit Lease in the form
annexed hereto as Exhibit F.

 

(c)           With respect to future Superior Mortgages and Superior Leases, the
provisions of Section 5.01 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, except to a de minimis
extent, reduce the rights of Tenant or increase the obligations of Tenant in
either case as compared to the SNDA Agreement in Exhibit E annexed hereto, in
the case of future Superior Mortgages, or the Unit Lease SNDA Agreement in
Exhibit F annexed hereto, in the case of future Superior Leases.

 

(any SNDA Agreement which
satisfies the requirements of clause (i) and (ii) above is a “Qualifying SNDA Agreement”).  Any
dispute as to whether a proposed agreement constitutes a Qualifying SNDA
Agreement may be submitted by either party for resolution by arbitration in
accordance with Article 35 hereof.

 

ARTICLE
6

Quiet Enjoyment

 

6.01.        So long as Tenant pays all of the Fixed Rent and Additional Charges and
is not in default after notice and the expiration of any grace period with
respect to such default, Tenant shall peaceably and quietly have, hold and
enjoy the Premises without hindrance, ejection or molestation by Landlord or
any person lawfully claiming through or under Landlord, subject, nevertheless,
to the provisions of this Lease, the Declaration, the By-laws, the Unit Lease
and any Superior Leases and Superior Mortgages.

 

 

ARTICLE
7

Assignment and Subletting

 

 

27

 

 

7.01.        (a)           Subject to the provisions of subsections
7.01(b), 7.01(c) and 7.01(e) hereof, Tenant shall have the right, without the
consent or approval of Landlord, to (i) assign or otherwise transfer this
Lease, (ii) sublet the Premises or any part thereof and modify or terminate any
existing sublease, and/or (iii) allow not more than one-half of the rentable
square footage of the Premises or any portion(s) thereof to be used, occupied
or utilized by third parties who are providing a material business service to
Tenant (“Users”).  Tenant agrees to
notify Landlord at least thirty (30) days prior to taking any action referred
to in clauses (i), (ii) or (iii) of the immediately preceding sentence, which
notice, in the case of an assignment of this Lease, shall be accompanied by a
duly executed counterpart of an assignment and assumption instrument whereby
the assignee agrees to assume the obligations of Tenant under this Lease
accruing from and after the effective date of such assignment.  Notwithstanding the foregoing, no User shall
be in privity with the Landlord under this Lease and Landlord shall have no
obligations to any User under this Lease for any reason whatsoever in
connection with such Users’ occupancy of the Premises.  No separate entrances to the Premises from
public or common areas shall be constructed to provide access to the space used
by any User.  No User shall use the
Premises, or any portion thereof for a use that is prohibited by the terms of
this Lease.  Any breach or violation of
this Lease by any User shall be deemed to be and shall constitute a default by
Tenant under this Lease, and subject to the foregoing notice requirement any
act or omission of a User shall be deemed to be and shall constitute an act or
omission of Tenant under this Lease. 
Tenant hereby indemnifies and holds harmless Landlord against any loss,
claim or damage arising from the acts or omissions of any User in or about the
Premises.

 

(b)           Except for any assignment to a Tenant Affiliate pursuant to paragraph
7.01(d) hereof, if Tenant shall at any time or times during the term of this
Lease desire to assign this Lease, Tenant shall give notice thereof (herein
called an “Assignment Recapture Offer Notice”) to Landlord, which notice shall
set forth: (i) Tenant’s intention to assign this Lease, (ii) the proposed date
upon which the Premises are intended or proposed (as the case may be) to be
vacated by Tenant, which date shall be no sooner than sixty 60 days after the
Assignment Recapture Offer Notice, and (iii) the consideration which Tenant
would be willing to accept from a third party in connection with an assignment
of this Lease to a third party.  Such
Assignment Recapture Offer Notice shall be deemed an offer from Tenant to
Landlord whereby Landlord shall terminate this Lease if Landlord accepts such
offer.  Said option may be exercised by
Landlord by notice (herein called “Landlord’s Assignment Recapture Notice”)
given to Tenant at any time within thirty (30) days after such Assignment
Recapture Offer Notice has been given by Tenant to Landlord (herein called the
“Assignment Recapture Period”), and time shall be of the essence with respect
to the delivery to Tenant of the Landlord’s Assignment Recapture Notice prior
to the expiration of the Assignment Recapture Period.

 

(c)           If Landlord exercises its option to terminate this Lease by delivering
to Tenant Landlord’s Assignment Recapture Notice, then this Lease shall end and
expire on the date the proposed assignment was to be effective and the Fixed
Rent and Additional Charges shall be paid and apportioned to such date.  If Landlord does not exercise its option to
terminate this Lease prior to the expiration of the Assignment Recapture
Period, then Tenant may assign this Lease to a third party within Two Hundred
Seventy (270) days following the expiration of the Assignment

 

28

 

Recapture Period provided
the consideration payable to Tenant for the assignment on a net present value
basis (using a discount rate of 9% per annum) is not more than five (5%)
percent less than the consideration set forth in the Assignment Recapture Offer
Notice.  In the event that Tenant desires
to assign this Lease either (i) for consideration payable to Tenant (on a net
present value basis [using a discount rate of 9% per annum]) which is more than
five (5%) percent less than the consideration set forth in the Assignment
Recapture Offer Notice or (ii) at any time after two hundred seventy (270) days
following the expiration of the Assignment Recapture Period, then before Tenant
may assign this Lease to a third party Tenant must first provide Landlord with
another Assignment Recapture Offer Notice which sets forth the new terms that Tenant
would be willing to accept from a third party. 
Landlord shall have the right to accept such offer as is set forth in
Section 7.01(b) and the provisions of Section 7.01(b) shall apply to such
Assignment Recapture Offer Notice.

 

(d)           Notwithstanding the provisions of this Section 7.01 to the contrary,
Tenant shall have the right, without being subject to Landlord’s option as
described in paragraph 7.01(b) to assign this Lease to a “Tenant
Affiliate”.  For purposes hereof, the
term “Tenant Affiliate” means a corporation, partnership, limited liability
company or other entity (i) into or with which Tenant is merged or consolidated
or, (ii) to which substantially all of Tenant’s assets are transferred, or
(iii) which controls is controlled by or is under common control with
Tenant.  For purposes of this Section
7.01(d) the term “control” means the ownership or voting control, directly or
indirectly, of 50% or more of the voting stock, partnership, membership or
similar interests in such entity.

 

(e)           Notwithstanding anything to the contrary provided in Section 7.01(a),
except for an assignment of this Lease or a sublease of all or any portion of
the Premises to a Tenant Affiliate in accordance with Section 7.01(d), Tenant
shall not, whether voluntarily, involuntarily or by operation of law assign or
otherwise transfer the Lease or sublet all or any portion of the Premises
(including entering into a so-called “takeover” agreement for the Premises),
without in each instance obtaining the prior written consent of Landlord (such
consent to not be unreasonably withheld, delayed or conditioned).  Without limitation, Landlord shall be deemed
to have reasonably withheld its consent if:

 

(i)            the proposed sublessee or assignee is a
Prohibited Person (as defined in any Superior Lease) or falls within the
categories described in items (2) - (18) on Exhibit I to the Declaration;

 

(ii)           Landlord has actively negotiated with the proposed sublessee or
assignee for space in the FC Office Units which is either of a comparable size
as the Premises (in the case of a proposed assignment) or of a comparable size
as the proposed premises to be sublet (in the case of a proposed sublease)
within the ninety (90) days immediately prior to Landlord’s receipt of written
notice from Tenant which indicates that Tenant has entered into negotiations
with the proposed sublessee or assignee, provided, however, that if within ten
(10) Business Days after

 

29

 

Landlord’s
receipt of such notice, Landlord has not certified to Tenant that Landlord has
actively negotiated with such proposed assignee or sublessee within the prior
ninety (90) days, then Landlord shall not be deemed to have reasonably denied
its consent to such proposed assignment or subleasing on the grounds that it
has actively negotiated with such party within the prior ninety (90) days;

 

(iii)          the proposed sublessee or assignee is then a tenant in other premises
in the FC Office Units;

 

(iv)          the terms and provisions of the proposed sublease do not state that
they are subject to the provisions of the Lease;

 

(v)           the terms of the proposed assignment or sublease do not state that the
proposed assignee or sublessee, as the case may be, shall not have the right to
further sublet its demised premises or further assign this Lease or allow its
demised premises to be used by others except in compliance with the terms and
provisions of this Article 7;

 

(f)            No User, Subtenant or assignee may use the
Premises for a use that violates the exclusive use rights of any other tenant
of the FC Office Units, which exclusive uses are set forth on Exhibit G annexed
hereto.  Notwithstanding the preceding
sentence, the provisions of this Section 7.01(f) shall not be applicable to and
shall not restrict the use of the Premises for, the conduct of any business
owned by or any business activity conducted by the New York Times Company.

 

(g)           Landlord’s consent to an assignment or sublease shall be given or
withheld (and if withheld, Landlord’s notice withholding such consent shall set
forth with specificity the reasons for such withholding) on or before the date
that is ten (10) Business Days after Landlord’s receipt of Tenant’s request for
such consent.  If Landlord fails to
respond to Tenant’s request for an assignment or sublease within such ten (10)
Business Day period, Landlord shall be deemed to have granted its consent to
such transaction provided that Tenant’s request shall state that Landlord’s
failure to withhold its consent to the proposed assignment or sublease, as the
case may be, within ten (10) Business Days shall be deemed a consent by
Landlord

 

(h)           Tenant shall not enter into any amendment to a sublease (with respect
to which Landlord’s consent was required) without obtaining the prior written
consent of Landlord unless such amendment provides for (i) the termination of
the term of the sublease prior to its expiration; or (ii) the reduction,
abatement or deferral of any rent, additional rent or other charges, provided
such reduction, abatement or deferral is for a good business purpose.  Landlord’s consent shall not be required for
any amendment to a sublease described in clauses (i) and (ii) of this Section
7.10(h).

 

30

 

(i)            Any assignment or transfer, or attempted
assignment or transfer, of this Lease and any sublease, or any attempted
sublease, of all or any portion of the Premises which is undertaken by Tenant
in violation of the provisions of this Article shall be void ab initio.

 

7.02.        If this Lease be assigned, Landlord may collect rent from the
assignee.  If the Premises or any part
thereof are sublet or used or occupied by anybody other than Tenant, Landlord
may, after default by Tenant, and expiration of Tenant’s time to cure such
default, collect rent from the subtenant or occupant.  In either event, Landlord shall apply the net amount collected to
the Fixed Rent and Additional Charges herein reserved, but no such assignment,
subletting, occupancy or collection shall be deemed the acceptance of the
assignee, subtenant or occupant as tenant, or a release of Tenant from the
performance by Tenant of Tenant’s obligations under this Lease.

 

7.03.        The original named Tenant covenants that, notwithstanding any
assignment or transfer, whether or not in violation of the provisions of this
Lease, and notwithstanding the acceptance of Fixed Rent and/or Additional
Charges by Landlord from an assignee, transferee, or any other party, the
original named Tenant shall remain primarily liable for the payment of the
Fixed Rent and Additional Charges and for the performance and observance of
other obligations of this Lease on the part of Tenant to be performed or
observed.

 

7.04.        The joint and several liability of Tenant and any immediate or remote
successor in interest of Tenant for the due performance and observance of the
obligations of this Lease on Tenant’s part to be performed or observed shall
not be discharged, released or impaired in any respect by any agreement or
stipulation made by Landlord extending the time of, or modifying any of the
obligations of, this Lease, or by any waiver or failure of Landlord to enforce
any of the obligations of this Lease. 
If any such agreement or modification operates to increase the
obligations of a tenant under this Lease (the “Then Tenant”),  the
liability of all predecessors to the Then Tenant shall continue to be no
greater than if such agreement or modification had not been made (except as any
such predecessor shall otherwise agree).

 

7.05.        With respect to each and every sublease or subletting under the
provisions of this Lease, it is further agreed that:

 

(a)           No subletting shall be for a term (including any renewal or extension
options contained in the sublease) ending later than one day prior to the
expiration date of this Lease; and

 

(b)           Each sublease shall provide that it is subject and subordinate to this
Lease and to any matters to which this Lease is or shall be subordinate, and
that in the event of termination, reentry or dispossess by Landlord under this
Lease Landlord may, at its option, take over all of the right, title and
interest of Tenant, as sublessor, under such sublease, and such subtenant
shall, at Landlord’s option, attorn to Landlord pursuant to the then executory
provisions of such sublease, except that Landlord shall not be (i) liable for
any previous act or omission of Tenant under such sublease, (ii) subject to any
credit, offset, claim, counterclaim, demand or

 

31

 

defense which such subtenant
may have against Tenant, (iii) bound by any previous modification of such
sublease or by any previous prepayment of more than one (1) month’s rent, (iv)
required to account for any security deposit of the subtenant other than any
security deposit actually delivered to Landlord by Tenant, (vi) bound by any
obligation to make any payment to such subtenant or grant any credits, except
for services, repairs, maintenance and restoration provided for under the
sublease to be performed after the date of such attornment, or (vii) responsible
for any monies owing by Landlord to the credit of Tenant; and

 

(c)           Provided that Landlord shall have space comparable in size then
available, or to become available, for leasing in the Building that Landlord
has elected to Lease to tenants, within nine (9) months from the effective date
of the proposed subletting, (herein called “Comparable Space”), the proposed
sublessee shall not then be an occupant of any part of the Building or a party
with whom Landlord has been actively negotiating with respect to space in the
Building during the ninety (90) day period immediately preceding Landlord’s
receipt of a notice from Tenant to Landlord (herein called a “Tenant
Negotiation Notice”) that Tenant has entered into negotiations with such party;
provided, however, that if Landlord shall have failed to identify in writing,
such Comparable Space or a prospective subtenant identified in a Tenant
Negotiation Notice as a party within ten (10) Business Days following
Landlord’s receipt of a Tenant Negotiation Notice, the foregoing condition
shall not apply to the subletting in question.

 

7.06.        Each subletting shall be subject to all of the covenants, agreements,
terms, provisions and conditions contained in this Lease.  Notwithstanding any such subletting to any
subtenant and/or acceptance of rent or additional rent by Landlord from any
subtenant, Tenant shall and will remain fully primarily liable for the payment
of the Fixed Rent and Additional Charges due and to become due hereunder and
for the performance of all the covenants, agreements, terms, provisions and
conditions contained in this Lease on the part of Tenant to be performed and
all acts and omissions of any licensee or subtenant or anyone claiming under or
through any subtenant which shall be in violation of any of the obligations of
this Lease, and any such violation shall be deemed to be a violation by Tenant.

 

7.07.        (a)           In the event of any sublease other then to a
Tenant Affiliate, Tenant shall in consideration therefor, pay to Landlord, as
Additional Charges an amount equal to fifty (50%) percent of any “Sublease
Profit” (as such term is hereinafter defined), after deducting therefrom the
amount of “Tenant’s Costs” (as such term is hereinafter defined).

 

(b)           For purposes of this Section 7.07, the term “Sublease Profit” shall
mean, for the term of the applicable sublease (the “Sublease Term”):

 

(1)           any rents, additional charges or other
consideration payable under the sublease or other occupancy agreement to Tenant
by the subtenant or other occupant which is in excess of the Fixed Rent and
Additional Charges accruing during the Sublease Term in respect of the
subleased space (at the rate per square foot payable by Tenant hereunder)
pursuant to the terms hereof, and

 

32

 

(2)           all sums paid for the sale or rental of
Tenant’s fixtures, leasehold improvements, equipment, furniture or other
personal property, less:

 

1.             in the case of a sale or rental of property
which is deemed to be in the property of Landlord pursuant to the provisions of
Article 12 hereof; zero;

 

2.             in the case of a sale of Tenant’s Property,
the then net unamortized or undepreciated portion (determined on the basis of
Tenant’s federal income tax returns) of the original cost thereof; or

 

3.             in the case of a rental of Tenant’s Property,
the fair rental value thereof.

 

(c)           The sums payable under this Section 7.07, if any, shall be paid to
Landlord within thirty (30) days after the same are paid by the subtenant to
Tenant.

 

(d)           For purposes hereof, the term “Tenant’s Cost” shall mean:

 

(1)           the amount of any commercially reasonable
brokers’ fees or commissions paid to any brokers as a result of any subletting
by Tenant hereunder and any transfer, sales or gains taxes paid by Tenant in
connection with such subletting;

 

(2)           the cost to Tenant of any improvements made
to prepare the space in question for the occupancy of the subtenant and any
rent abatement and/or concession (including moving expenses and any lease
takeover costs) and/or work allowance (or equivalent) granted by Tenant to any
such subtenant in lieu of or in addition to Tenant’s performance of any such
improvements made to prepare the space in question for the occupancy of the
subtenant;

 

(3)           advertising and marketing expenses directly
related to the subletting of the space;

 

(4)           reasonable legal fees directly related to the
subletting of the space;

 

For the purposes of
computing “Sublease Profit”, Tenant’s Costs with respect thereto shall be
deducted as and when they are paid by Tenant (or, as necessary, deducted from
future Sublease Profit, to the extent that current Tenant’s Costs exceed
current Sublease Profit).

 

33

 

ARTICLE
8

Compliance with Laws

 

8.01.        (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; provided, however,
that Tenant shall not be obligated to make any repairs, replacements,
alterations, additions or improvements of a structural nature or any repairs,
replacements, alterations, additions or improvements to any “Building Systems”, as such term is hereinafter defined, in order to comply with
laws and requirements of public authorities unless the need for same arises out
of any of the following causes:

 

(i)            Tenant’s manner of use of the Premises (other
than the mere use of the Premises as executive and general offices with
customary ancillary uses),

 

(ii)           the manner of operation of Tenant’s installations,
equipment or other property therein (other than the operation thereof in a
manner incidental to the mere use of the Premises for executive and general
offices with customary ancillary uses),

 

(iii)          any cause or condition created by or at the
instance of Tenant (other than the mere use of the Premises as executive and
general offices with customary ancillary uses and other than installations,
equipment or other property incidental to such use and commonly installed in “Comparable Buildings”, as such term is
defined in Section 13.04 hereof), or

 

(iv)          the breach of any of Tenant’s obligations
hereunder.

 

Landlord shall give Tenant
not less than thirty (30) days notice prior to Landlord’s effecting any
compliance with such laws and requirements for which Tenant is responsible
pursuant to the preceding sentence.

 

Notwithstanding
the foregoing provisions of this Section 8.01(a), 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 8.02 hereof.

 

34

 

(b)           Except to the extent that either (i) Tenant is required by this Lease
to comply therewith, or (ii) such compliance is the responsibility of the
Condominium Board of Managers or the NYTC Board of Managers pursuant to the
Declaration or the By-Laws, Landlord shall comply with all present and future
laws and requirements of public authorities in respect of the Premises and any
other portions of the Unit. 
Notwithstanding the foregoing, Landlord may defer compliance with any such
law or requirement so long as Landlord shall be contesting the validity or
applicability thereof in good faith by appropriate proceedings diligently
prosecuted provided that (x) such deferral of compliance does not adversely
affect Tenant’s use of the Premises or Tenant’s right or ability lawfully to
use the Premises or to make alterations or improvements as permitted by this
Lease, (y) Tenant shall not be subject to criminal penalty or to prosecution
for a crime, or any other fine or charge, nor shall the Premises or any part
thereof be subject to being condemned or vacated, and (z) Landlord shall keep
Tenant advised as to the status of such proceedings.  Without limiting the application of the above, Tenant shall be
deemed subject to prosecution for a crime if Tenant or any officer, director,
partner, shareholder or employee of Tenant, 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 Tenant, or such officer,
director, partner, shareholder or employee of Tenant is required to plead or
answer thereto.

 

(c)           For purposes of this Section 8.01 and any other applicable provision of
this Lease, the term “Building Systems”  shall mean

 

(i)            the elevators and escalators of the Building;

 

(ii)           the window washing and waste compacting and
removal equipment of the Building, if any;

 

(iii)          the core toilets and utility closets of the
Building, and all fixtures and equipment installed therein; and

 

(iv)          the electrical, HVAC, mechanical, chilled
water, condenser water, plumbing, domestic water, sanitary, sprinkler, fire
control, alarm and prevention, BMS, life safety and security systems of the
Building (together with all related equipment), brought to and including, but
not beyond, the point on each floor of the Building at which such systems
connect to horizontal distribution facilities; provided, however that,
notwithstanding anything contained in clause (iv) of the foregoing to the
contrary, the following shall be considered part of the Building Systems: (x)
the entire main distribution loop of the sprinkler system on each floor on
which the Premises are located and (y) the entire perimeter HVAC system on each
floor on which the Premises are located.

 

35

 

8.02.        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, provided that Landlord
shall not be subject to criminal penalty or to prosecution for a crime, or any
other fine or charge, nor shall the Premises or any part thereof or the
Building or Land, or any part thereof, be subject to being condemned or
vacated, nor shall the Building or Land, or any part thereof, be subjected to
any lien (unless Tenant shall remove such lien by bonding or otherwise) or
encumbrance, by reason of non-compliance or otherwise by reason of such
contest.  Tenant shall keep Landlord
advised as to the status of such proceedings. 
Without limiting the application of the above, 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.

 

ARTICLE
9

Insurance

 

9.01.        Tenant shall not violate, or permit the violation of, any condition
imposed by any insurance policy then issued in respect of the Real Property
which is standard and customary for Comparable Buildings (as herein defined)
and shall not do, or permit anything to be done, or keep or permit anything to
be kept in the Premises which would increase any insurance rate in respect of
the Real Property over the rate which would otherwise then be in effect or
which would result in insurance companies of good standing refusing to insure
the Real Property in amounts required under the By-Laws, or which would result
in the cancellation of or the assertion of any defense by the insurer in whole
or in part to claims under any policy of insurance in respect of the Real
Property.

 

9.02.        If, by reason of any failure of Tenant to comply with the provisions of
this Lease (which failure Landlord shall notify Tenant of and, to the extent
reasonably possible, afford Tenant a reasonable period of time to cure), the
premiums on Landlord’s insurance on the Real Property shall be higher than they
otherwise would be, Tenant shall reimburse Landlord, within thirty (30) days
and as Additional Charges, for that part of such premiums attributable to such
failure on the part of Tenant.  A
schedule or “make up” of rates for the Real Property or the Premises, as the
case may be, issued by the New York Fire Insurance Rating Organization or other
similar body making rates for insurance for the Real Property or the Premises,
as the case may be, shall be conclusive evidence of the facts therein stated
and of the several items and charges in the insurance rate then applicable to
the Real Property or the Premises, as the case may be.

 

9.03.        Tenant, at its expense, shall maintain at all times during the term of
this Lease (a) fire insurance with “all risk” coverage, vandalism and malicious
mischief endorsements covering

 

36

 

all present and future
Tenant’s Property and all leasehold improvements installed in the Premises
(including Tenant’s Work) to a limit of not less than the full replacement
value thereof, such insurance to include a replacement cost endorsement, (b)
commercial general liability insurance, including contractual liability, in
respect of the Premises and the conduct or operation of business therein, with
Landlord and its managing agent, if any, and the lessor under the Unit Lease
and each Superior Lessor or Superior Mortgagee whose name and address shall
previously have been furnished to Tenant, as additional insureds, with limits
of not less than Five Million ($5,000,000) Dollars combined single limit for
bodily injury and property damage liability in any one occurrence, (c) steam
boiler, air-conditioning (other than base Building HVAC equipment) or machinery
insurance, if Tenant installs a boiler or pressure object or similar equipment
in the Premises, with Landlord and its managing agent, if any, and the lessor
under the Unit Lease and each Superior Lessor or Superior Mortgagee whose name
and address shall previously have been furnished to Tenant, as additional
insureds, with limits of not less than Five Million ($5,000,000) Dollars and
(d) when Alterations are in progress, the insurance specified in Article
11.  The limits of such insurance shall
not limit the liability of Tenant. 
Tenant shall deliver to Landlord, prior to the Commencement Date,
certificates of insurance, in form reasonably satisfactory to Landlord issued
by the insurance company or its authorized agent.  Such insurance may be carried in a blanket policy covering the
Premises and other locations of Tenant, if any, provided that each such policy
shall in all respects comply with this Article 9.  Tenant shall procure and pay for renewals of such insurance from
time to time before the expiration thereof, and Tenant shall deliver to
Landlord such renewal policy or a certificate thereof at least ten (10) days before
the expiration of any existing policy. 
All such policies shall be issued by companies rated in the A.M.  Best Key Rating Guide with ratings of at
least A and of at least X and such company shall be licensed to do business in
New York State or authorized to write insurance in New York State, whether or
not so admitted.  The proceeds of
policies providing “all risk” property insurance of Tenant’s Property and
leasehold improvements installed in the Premises shall be payable to Tenant.

 

9.04.        Each party agrees to have included in each of its insurance policies
insuring against loss, damage or destruction to the Unit or the Building or any
property owned or leased by such party in, on or around the Unit or the
Building, or the rents earned therefrom, or the conduct of business therein, a
waiver of the insurer’s right of subrogation against the other party during the
term of this Lease or, if such waiver should be unobtainable or unenforceable,
(i) an express agreement that such policy shall not be invalidated if the
assured waives the right of recovery against any party responsible for a
casualty covered by the policy before the casualty or (ii) any other form of
permission for the release of the other party. 
If such waiver, agreement or permission shall not be, or shall cease to
be, obtainable from either party’s then current insurance company, the insured
party shall so notify the other party promptly after learning thereof, and
shall use commercially reasonable efforts to obtain the same from another insurance
company described in Section 9.03 hereof.

 

Landlord
hereby releases Tenant with respect to any claim (including a claim for
negligence) which Landlord might otherwise have against Tenant for loss, damage
or destruction to the Unit or the Building, or any property owned by Landlord
therein, or interruption of rents

 

37

 

earned therefrom, in either
case to the extent to which Landlord is, or is required to be insured, under a
policy or policies containing a waiver of subrogation or permission to release
liability, as provided in this Section.

 

Tenant
hereby releases Landlord with respect to any claim (including a claim for
negligence) which Tenant might otherwise have against Landlord for loss, damage
or destruction to Tenant’s Property and leasehold improvements installed in the
Premises, or interruption of business at the Premises, in either case to the
extent to which Tenant is, or is required to be insured, under a policy or
policies containing a waiver of subrogation or permission to release liability,
as provided in this Section.

 

Nothing
contained in this Section shall be deemed to relieve either party of any duty
imposed elsewhere in this Lease to repair, restore or rebuild or to nullify any
abatement of rents provided for elsewhere in this Lease.

 

9.05.        Landlord, at its expense, shall maintain at all times during the term
of this Lease (i) a commercial general liability insurance policy with limits
of not less than Five Million ($5,000,000) Dollars combined single limit for
bodily injury and property damage liability in any one occurrence, and (ii)
“all-risk” property insurance covering any personal property owned by Landlord
in the Unit or the Building, in each case with such limits not less than that
required by either (x) the bona fide, third-party holder of the first mortgage
on the Building or (y) if no such mortgagee exists, third party mortgagees of
comparable first-class office buildings in the Borough of Manhattan.(12)

 

ARTICLE
10

Condominium Provisions

 

10.01       (a) Throughout the term of this Lease, this Lease (and the rights of
Tenant hereunder) shall remain subject and subordinate to the terms of the
Declaration and the By-laws and any Superior Lease, as each of the same shall
be amended or modified in accordance with their respective terms, provided,
however, that this Lease shall not be subject to any modification which shall
increase Tenant’s obligations or liabilities or diminish Tenant’s rights or
otherwise adversely affect Tenant under this Lease, except to a de minimis
extent.

 

(b)           Notwithstanding any of the provisions of this Section 10.01 to the
contrary, if Landlord or a Landlord Affiliate obtains a non-disturbance,
recognition and attornment agreement (or similar agreement) from the Condominium
Board of Managers in favor of any other tenant (an “SNDA Tenant”) in the FC
Office Units (a “Board SNDA”), Landlord shall

 

(12) If and for so long
as Ground Lessor is (i) the Landlord under this Lease and (ii) a governmental
entity or a public benefit corporation, the provisions of Section 9.05 shall be
deleted.

 

38

 

obtain a Board SNDA in favor
of Tenant on the same terms, provisions, and conditions as the Board SNDA
provided to such SNDA Tenant (except to the extent any such terms, provisions
and conditions are not applicable to the provisions of this Lease) within ten
(10) days after the date the Condominium Board of Managers executes and
delivers such Board SNDA.(13)

 

 

ARTICLE
11

Alterations

 

 

(13) The provisions of
(b) will only apply if Premises is comprised of at least one (1) full floor.

 

 

 

39

 

11.01.      During the term of this Lease, Tenant shall have the right to make
improvements, changes or alterations (any such improvement, change or
alteration made by or on behalf of Tenant being an “Alteration”) in and to the Premises permitted to be made under
the Declaration to the same extent, and subject to compliance by Tenant with
the same conditions, as would apply under Article X of the Declaration if
Tenant were the owner of the Unit. 
Notwithstanding the provisions of this Section 11.01 to the contrary,
not later than ten (10) days prior to commencing any Alteration and thirty (30)
days prior to commencing any “Material Alteration” (as hereinafter defined),
Tenant shall provide reasonably detailed architectural plans and specifications
to Landlord which clearly and accurately describe the proposed Alteration or
Material Alteration, as the case may be. 
In addition, within thirty (30) days following the completion of any
Alteration or Material Alteration, Tenant shall deliver to Landlord CAD disks
containing a complete set of “as built” plans and specifications for the
Alteration or Material Alteration, provided Landlord is requiring the same from
other tenants in the Building.  As an
Additional Charge hereunder, Tenant shall, within thirty (30) days after
Landlord’s delivery to Tenant of an invoice therefor, reimburse Landlord for
the reasonable third party out-of-pocket costs and expenses (without markup or
profit) incurred by Landlord in connection with its review of any proposed
plans and specifications for an Alteration or Material Alteration.  Except as provided in the foregoing
sentence, Landlord shall not impose any charge or fee in connection with any
Alterations.  Notwithstanding any
provisions of this Section 11.01 to the contrary, Tenant shall be required to
obtain Landlord’s prior written consent, which consent, except as herein
provided, may be withheld in Landlord’s sole discretion, to the performance of
any Material Alteration.  If Landlord
shall fail to respond to Tenant’s written request for approval of any Material
Alteration, (herein called a “Material Alterations Request”), within twenty
(20) days (subject to extension to 45 days as hereinafter provided) after such
Material Alterations Request is made by Tenant, with any disapproval including
detailed comments thereon explaining the reasons for such disapproval, then
provided that such Material Alterations Request shall state that Landlord’s
failure to disapprove of the proposed request within twenty (20) days (subject
to extension to 45 days as hereinafter provided) shall be deemed an approval by
Landlord, such Material Alterations Request shall be deemed approved by
Landlord.  For purposes of this Article
11, a “Material Alteration” is an Alteration which (a) is not limited to the
interior of the Premises or which affects the exterior appearance of the
Premises, the Unit or the Building, and Landlord agrees that it shall not
unreasonably withhold or condition its consent to such an Alteration, or (b)
affects, except to an immaterial extent, the structure of the Unit or the
Building, and Landlord agrees that it shall not unreasonably withhold or
condition its consent to such an Alteration if the proposed Alteration does not
adversely affect (except to an immaterial extent) such structure, or (c)
affects, except to an immaterial extent, the usage or the proper functioning of
the mechanical, electrical, sanitary, heating, ventilating, air-conditioning or
other services systems of the Unit or the Building and Landlord agrees that it
shall not unreasonably withhold or condition its consent to such an Alteration
if the proposed Alteration does not adversely affect (except to an immaterial
extent) such systems, or (d) will cost more than $250,000 in the aggregate
(which amount shall be increased annually in the same month in which the
Commencement Date [the “Index Month”] occurs, by the same percentage increase
which occurs in the Consumer Price Index from the Index Month of the preceding
year), and Landlord agrees that it shall not unreasonably withhold or condition
its consent to such an Alteration.  Notwithstanding
the provisions of clauses (b) and

 

40

 

(c) of this Section 11.01,
if, in the reasonable judgment of Landlord’s independent reputable engineer, a
Material Alteration as described in such clauses shall have an adverse affect
(which shall be greater than to an immaterial extent) on the structure of the
Unit or the Building or the systems, as applicable, but such adverse effect
will be remediated by Tenant’s proposed remedial action, Landlord will not
unreasonably withhold or delay or condition its consent to any Material
Alterations.  If Tenant’s plans for any
Material Alteration affects a structural component of the Building or Unit or a
building system and Landlord elects to have an independent engineer review the
plans for such Material Alteration, then the twenty (20) day period set forth
in this Section 11.01 shall be extended to forty five (45) days.

 

11.02.      At any and all reasonable times during the progress of Alterations,
upon reasonable prior notice to Tenant, representatives of Landlord shall have
the right of access to the Premises and inspection thereof (provided, however,
that such representatives shall not interfere with the performance of such
Alterations and shall be subject to the security requirements of Tenant or
Tenant’s contractor).  Landlord shall
incur no liability, obligation or responsibility to Tenant or any third party
by reason of the access and inspection provided in this Section 11.02.

 

11.03.      Throughout the performance of Alterations, Tenant, at its expense, shall
carry, or cause to be carried, worker’s compensation insurance for all persons
employed in connection with such Alterations in statutory limits, all risk
“Builders Risk” insurance and general liability insurance, with completed
operation endorsement, for any occurrence in or about the Unit or the Building,
under which Landlord and its managing agent, if any, the Board of Mangers, the
FC Board of Managers and any Superior Lessor and Superior Mortgagee whose name
and address shall previously have been furnished to Tenant shall be named as
parties insured, in such limits as Landlord may reasonably require, provided
that such limits are obtainable from reputable insurers at commercially
reasonable rates and consistent with limits required with respect to comparable
Alterations performed by tenants in Comparable Buildings.  Tenant shall furnish Landlord and the Board
of Managers with an original certificate of insurance or other reasonably
satisfactory evidence that such insurance is in effect at or before the
commencement of Alterations and, on request, at reasonable intervals thereafter
during the continuance of Alterations.

 

11.04.      Tenant, at its expense, shall procure the satisfaction or discharge of
record of all mechanics and other liens, encumbrances and violations filed in
connection with any Alterations, within thirty (30) days after the filing
thereof (or bond or otherwise remove such lien or encumbrance if Tenant is
contesting same in accordance with the terms hereof) is received by Tenant.  Provided that Tenant provides such bonding
during the pendency of any contest, nothing herein contained shall prevent
Tenant from contesting, in good faith and at its own expense, any notice of
violation, provided that Tenant shall comply with the provisions of Section 8
hereof,

 

 

ARTICLE
12

Landlord’s and Tenant’s
Property

 

 

41

 

12.01.      All fixtures, equipment, improvements, ventilation and air-conditioning
equipment and appurtenances attached to or built into the Premises at the
commencement of or during the term of this Lease (including raised flooring),
whether or not by or at the expense of Tenant, shall be and remain a part of
the Premises, shall, upon the expiration or sooner termination of this Lease,
be deemed the property of Landlord (without representation or warranty by
Tenant) and shall not be removed by Tenant, except as provided in Section
12.02; except that Tenant may elect, at Tenant’s option to remove any such
fixtures, equipment, improvements, ventilation and air-conditioning equipment
and appurtenances attached to or built into the Premises and installed by
Tenant at Tenant’s expense after the date of this Lease, provided that same can
be removed without permanent damage to the Premises and provided, further, that
Tenant shall, in the event of any such removal, repair the portion of the
Premises affected by such removal and restore same to the condition which
existed prior to the installation of the removed item(s), reasonable wear and
tear excepted.

 

12.02.      All furniture systems, movable partitions, special cabinet work,
business and trade fixtures, machinery and equipment, communications equipment
(including, without limitation, telephone system, security system and wiring)
and office equipment, whether or not attached to or built into the Premises,
which are installed in the Premises by or on behalf of Tenant and can be
removed without structural damage to the Building, and all furniture,
furnishings and other articles of movable personal property owned by Tenant and
located in the Premises (all of the foregoing referred to in this sentence
being herein collectively called “Tenant’s
Property”) shall be and shall remain the property of Tenant and may
be removed by Tenant at any time during the term of this Lease; provided that if any of Tenant’s Property
is removed, Tenant shall repair or pay the cost of repairing any damage to the
Premises or to the Building resulting from the installation and/or removal
thereof.

 

12.03.      At or before the Expiration Date of this Lease (or within thirty (30)
days after any earlier termination of this Lease) Tenant, at its expense, shall
remove from the Premises all of Tenant’s Property and Tenant shall repair any
damage to the Premises or the Building resulting from any installation and/or
removal of Tenant’s Property.  Any items
of Tenant’s Property which shall remain in the Premises after the Expiration
Date of this Lease, or within thirty (30) days following an earlier termination
date, may at the option of Landlord, be deemed to have been abandoned, and in
such case such items may be retained by Landlord as its property or disposed of
by Landlord, without accountability, in such manner as Landlord shall
determine, at Tenant’s expense. 
Notwithstanding the foregoing, Tenant shall not be required to remove,
or pay Landlord for the cost of removing, any wiring, conduit or cabling.

 

ARTICLE
13

Repairs and Maintenance

 

13.01.      Tenant shall, at its expense, throughout the term of this Lease, take
good care of and maintain in good order and condition the Premises and the
fixtures and improvements therein

 

42

 

including, without
limitation, the property which is deemed Landlord’s pursuant to Section 12.01
hereof, except as otherwise expressly provided in this Lease.

 

Subject to the provisions of Section 9.04
hereof, and except as otherwise provided for in this Lease, Tenant shall be
responsible, at is sole cost and expense, for all repairs, interior and
exterior, structural and non-structural, ordinary and extraordinary, foreseen
or unforeseen, in and to the Premises and the Building and the facilities and
systems thereof, the need for which arises out of

 

(a)                                  the performance by or on behalf of Tenant of
any Alterations,

 

(b)                                 the installation, use or operation of any
property installed by or on behalf of Tenant which is deemed Landlord’s
pursuant to Section 12.01 hereof and Tenant’s Property,

 

(c)                                  the moving of any property installed by or on
behalf of Tenant which is deemed Landlord’s pursuant to Section 12.01 hereof
and Tenant’s Property in or out of the Building, or

 

(d)                                 the gross negligence or willful misconduct of
Tenant or any of its subtenants or its or their employees, agents, contractors
or invitees.

 

As
used in this Article, the term “repairs” shall include replacements.

 

All repairs in or to the Premises for which
Tenant is responsible shall be promptly performed by Tenant in a manner which
will not unreasonably interfere with the use of the Building by other
occupants, but Tenant shall not be required to perform same on an overtime or
premium pay basis, except if and to the extent the use of such overtime or
premium pay labor would be required under the Declaration if the owner of the
Unit were performing such repairs.

 

13.02.      Tenant
shall give Landlord notice of any defective condition in any plumbing, heating,
air-conditioning or ventilation system or electrical lines located in,
servicing or passing through the Premises of which it has actual knowledge.  Following such notice, Landlord shall comply
with its obligations under Section 13.04 hereof, but if Tenant is responsible
for same under the provisions of this Article 13, Tenant shall reimburse
Landlord for its commercially reasonable out-of-pocket costs without profit or markup
incurred in doing so.

 

13.03.      Except as
otherwise expressly provided in this Lease, Landlord shall have no liability to
Tenant, nor shall Tenant’s covenants and obligations under this Lease be
reduced or abated in any manner whatsoever, by reason of any inconvenience,
annoyance, interruption or injury arising from Landlord’s making any repairs
which Landlord is required or permitted by this Lease, or required by law, to
make in or to the fixtures, equipment or appurtenances of the Building or the
Premises; provided, however, that Landlord shall make such repairs at such
times and in such manner as to minimize interference with the conduct of
Tenant’s business in the

 

43

 

Premises, including, without
limitation, the performance of such work on an overtime or premium-pay basis to
the extent required of a Unit Owner under the Declaration.

 

Except in emergency circumstances, upon
Tenant’s request, Landlord shall perform any maintenance or repairs which would
interfere with Tenant’s conduct of business in or use of the Premises during
hours other than Business Hours of Business Days (as herein defined), and
Tenant shall reimburse Landlord for the incremental costs incurred by Landlord
in connection with performing such maintenance or repairs during such hours,
unless the necessity for such maintenance or repairs shall arise from (i) the
gross negligence or willful misconduct of Landlord or any of its agents,
contractors or employees, or (ii) the failure of Landlord to observe or perform
any of the terms, covenants or conditions of this Lease required to observed or
performed by Landlord, in which case such incremental costs shall be borne by
Landlord.  Any incremental costs
required to be paid by Tenant pursuant to the preceding sentence shall
constitute Additional Charges hereunder and shall be paid to Landlord within
thirty (30) days after demand.

 

13.04.      (a)           Landlord shall, at its expense, but subject
to the provisions of this Lease including, without limitation Section 13.01,

 

(i)            keep and maintain in good order and condition
to the standard then prevailing for comparable premium first-class midtown
Manhattan office buildings (“Comparable
Buildings”) the Unit and the Building Systems servicing same, and

 

(ii)           make all repairs, interior and exterior, structural and non-structural,
ordinary and extraordinary, foreseen or unforeseen, in and to the foregoing
necessary or appropriate in order to keep the same in such condition, as set
forth in clause (i) of this subsection 13.04(a),

 

except to the extent same is
the responsibility of the Condominium Board of Managers or the FC Board of
Managers under the Declaration.

 

Landlord shall, at its expense, but subject
to the provisions of this Lease, clean the common or public areas and
facilities of the Unit, if any, in accordance with standards then prevailing
for Comparable Buildings.

 

13.05       Tenant agrees to comply with the Building Standards set forth on
Exhibit I annexed hereto.  [Exhibit I
will be attached to the Lease when agreed upon between Landlord and Tenant].

 

44

 

ARTICLE
14

Electricity

 

14.01.      Landlord agrees that prior to the Commencement Date risers, feeders and
wiring will be installed in the Building by Landlord to furnish electrical
service to the Premises in accordance with the provisions of Exhibit G annexed hereto.  After the Commencement Date any additional
risers, feeders or other equipment or service proper or necessary to supply
Tenant’s electrical requirements, upon written request of Tenant, will be
installed by Landlord at the sole cost and expense of Tenant.

 

[*(14)14.02.            (a)           For
the period commencing on the Commencement Date, Tenant shall have the right to
contract directly with and to pay directly to the utility company supplying
electric current for the Premises the amounts due for such electric current
consumed as indicated by meters installed at Tenant’s cost measuring Tenant’s
consumption thereof.  Landlord shall
cooperate with Tenant at no cost to Landlord, if Tenant elects to obtain
electric energy directly from the electric service provider.

 

(b)           Tenant shall purchase from Landlord all electric current that Tenant
requires at the Premises and will pay Landlord for the same as follows: As an
Additional Charge hereunder, Tenant shall pay Landlord for the electricity
consumed by Tenant, as measured by the submeter(s) furnished therefor on each
floor of the Premises or elsewhere in the Building, which submeter(s) shall be
installed by Landlord at Landlord’s expense on or prior to the Commencement
Date and shall measure electrical consumption in the Premises separately from
that of all other users of electricity. 
Landlord shall bill Tenant separately for Tenant’s consumption, at the
same rate being charged to Landlord (without profit or rnark-up) by the utility
company which provides electricity to the FC Office Units, which rate shall
include any tax, levy or other such charge imposed upon Landlord or with
respect to the purchase, sale or resale of electricity (“Landlord Rate”).

 

(c)           Tenant shall pay for electricity on a monthly basis, or at such less
frequent intervals as Landlord may determine, within thirty (30) days following
Landlord’s presentation to Tenant of an invoice therefor.

 

(d)           Where more than one rneter or sub meter measures the electricity
supplied to the Premises, the electricity rendered through all such meters or
submeters shall be measured, consolidated and totalized as if all service were
rendered through a single meter.

 

(14)
Section 14.02(a) is only
applicable if the Premises is being supplied with electric on a direct basis
(i.e., there is no submeter measuring Tenant’s electric consumption).  Section 14.02(c) will be applicable if there
is a submeter measuring Tenant’s electric consumption.

 

45

 

(e)           If any rebate from the utility company furnishing electricity to the FC
Office Units with respect to the Premises is paid directly to either party on
account of installations of equipment, the party that paid for such equipment
shall receive such rebate within thirty (30) days thereafter.  No such rebate shall be taken into account
(i.e., subtracted in calculating the true cost of electricity) in determining
Landlord’s Rate.

 

14.03.      Intentionally Deleted.

 

14.04.      Tenant’s use of electric current in the Premises shall not at any time
exceed the capacity of any of the electrical conductors and equipment in or
otherwise serving the Premises.

 

14.05.      To the extent permitted by applicable law, Landlord shall not be liable
in any way to Tenant for any failure or defect in the supply or character of
electric energy furnished to the Premises by reason of any requirement, act or
omission of the public utility providing the Building with electricity or for
any other reason whatsoever, except for Landlord’s gross negligence or willful
misconduct.

 

14.06.      Landlord covenants and agrees that at all times during the term of this
Lease, Landlord shall make available to the base building electrical closet on
each floor in the Premises 6 watts per gross square foot of electrical power
demand load (exclusive of electric energy used in connection with providing
base building air conditioning service to the Premises and domestic hot water
to the common areas of the floor).

 

ARTICLE
15

Landlord’s Services

 

15.01.      (a)           Landlord will provide, after the term of this
Lease shall have commenced the following services to the Premises in the manner
hereinafter more particularly set forth: (i) heat, ventilation and air conditioning;
(ii) elevator service; (iii) domestic hot and cold water; and (iv) cleaning
(unless Tenant shall at any time during the term of this Lease elect to provide
its own cleaning service with respect to the Premises, in which event Tenant
shall be entitled to a reduction in Fixed Rent (the “Cleaning Cost Reduction”)  from
and after the effective date of such election by Tenant equal to (x) the number
of rentable square feet contained in the Premises, multiplied by (y) the cost
which would have been incurred by Landlord on a per rentable square foot basis
to provide cleaning services to the Premises in accordance with the provisions
of Exhibit J annexed hereto under the cleaning contract with an independent
cleaning contractor unaffiliated with Landlord covering the remaining office
portions of the Building to which Landlord (or a Landlord Affiliate) is
providing cleaning services, or if no such contract is in effect, the
prevailing cost to provide such cleaning services by independent cleaning
contractors in Comparable Buildings. 
Landlord shall also provide, at no cost to Tenant, connections to the
Building’s life safety systems, but the actual cost (without profit or markup)
to physically make such connections shall be at Tenant’s Cost.  Any dispute between the parties as to the
amount of

 

46

 

the Cleaning Cost Reduction,
if applicable, may be submitted by either party to arbitration in accordance
with the provisions of Article 35 hereof. 
Notwithstanding the provisions of this Section 15.01(a) to the contrary,
if Tenant elects to provide its own cleaning service with respect to the
Premises, Tenant agrees that (i) Tenant shall not exercise such rights in a
manner which would create any work stoppage at the Building and (ii)
notwithstanding the provisions of Exhibit J, if Tenant elects to provide its
own cleaning service as provided in this Section 15.01(a), Tenant shall not
perform any cleaning outside the Premises and the Cleaning Cost Reduction shall
not include any amount attributable to cleaning outside of the Premises.

 

(b)           As used herein, the terms “Business
Hours” and “Business Days”
shall have the meanings set forth in the Declaration.

 

15.02.      (a)           Landlord shall:

 

(i)            supply heat to the Premises during Business
Hours of Business Days when needed for comfortable occupancy, and

 

(ii)           supply air conditioning and ventilation to
the Premises during Business Hours on Business Days throughout the year,

 

and such heating, air
conditioning and ventilation shall be provided so as to satisfy the conditions
set forth on Exhibit H annexed
hereto.

 

If
Tenant shall require heat or air-conditioning services (“Overtime HVAC Service”) at any time other
than Business Hours on Business Days, Landlord shall furnish such service for
such times upon notice from Tenant, and Tenant shall pay to Landlord within
thirty (30) days after delivery of an invoice therefor, any incremental costs
incurred by Landlord or a Landlord Affiliate in providing such Overtime HVAC
Services, including without limitation, the charges assessed to Landlord or a
Landlord Affiliate by the Condominium Board of Managers for providing such
Overtime HVAC Service to the Premises without profit or markup to
Landlord.  In the event such Overtime
HVAC Service is provided to portions of the FC Office Units in addition to the
Premises during any portion of the period Tenant has requested such Overtime
HVAC Service, an allocation of such charges shall be made on a prorata basis
between the Premises and such other portions of the FC Office Units.

 

(b)           If Landlord shall make steam available for Tenant’s use within the
Premises for any additional heating or permitted kitchen use, the cost of such
steam as well as the cost of piping and other equipment or facilities required
to supply steam to and distribute steam within the Premises shall be paid by
Tenant.  Landlord may install and
maintain at Tenant’s expense, meters to measure Tenant’s consumption of steam
and Tenant shall reimburse Landlord, within thirty (30) days after Tenant’s
receipt of an invoice therefor, for the quantities of steam shown on such
meters at Landlord’s actual cost of such steam which is charged to Landlord by
the utility providing the same without profit or markup to Landlord.

 

47

 

(c)           (i)            Landlord shall provide passenger elevator
service to each floor of the Premises at all times during Business Hours of
Business Days and Landlord agrees that at least one passenger elevator in each
elevator bank serving the Premises shall be subject to call at all other times.

 

(ii)           Landlord shall provide freight elevator (and, as needed, loading dock)
service to the Premises on a first come-first served basis (i.e., no advance scheduling) during
Business Hours of Business Days. 
Freight elevator (and, as needed, loading dock) service shall also be
provided to the Premises at Tenant’s request on a reserved dedicated basis at
all other times (i.e., twenty-four (24) hours per day, seven (7) days per week)
(“Overtime Freight Elevator/Loading Dock
Service”).  In respect of any
such Overtime Freight Elevator/Loading Service furnished to Tenant at its
request, Tenant shall pay to Landlord, as Additional Charges hereunder, any
incremental costs incurred by Landlord or Landlord Affiliates in providing such
Overtime Freight Elevator/Loading Dock Service, including without limitation
the charges assessed to Landlord or Landlord Affiliates under the Declaration
by reason of the provision of such Overtime Freight Elevator/Loading Dock
Service to the Premises (e.g., charges for overtime personnel, if applicable)
without profit or mark-up, but such Overtime Freight Elevator Service/Loading
Dock Service shall be otherwise without charge to Tenant.

 

(e)           Landlord shall furnish reasonable quantities of hot and cold water to
the floor(s) on which the Premises are located for core lavatory, cleaning,
drinking and sprinkler purposes only. 
If Tenant shall require water for any other purpose, Landlord need only
furnish cold water at the Building core riser through a capped outlet located
on the floor of the Premises, and the cost of heating such water shall be paid
by Tenant as provided in the last sentence of this Section 15.02(e).  Landlord may install and maintain, at
Tenant’s expense, meters to measure Tenant’s consumption of such cold water
and/or hot water for such other purposes. 
Tenant shall pay to Landlord, within thirty (30) days after its receipt
of an invoice therefor, (i) Landlord’s charges for the quantities of cold water
shown on such meters, which charges shall not exceed the actual costs (without
profit or markup) charged to Landlord by the utility supplying cold water to
the Building, and (ii) Landlord’s charges for the quantities of hot water shown
on such meters, which charges shall not exceed the actual costs charged to
Landlord by the utility supplying cold water to the Building, plus the actual
cost to Landlord of heating such water.

 

(f)            (i)            Except
as otherwise provided below, or unless Tenant shall elect to provide its own
cleaning services as provided in Section 15.01(a) hereof, Landlord shall cause,
the interior of the Premises, to be cleaned in accordance with the provisions
of Exhibit J attached hereto and
made a part hereof.  For so long as
Landlord is providing such cleaning services, Tenant shall pay to Landlord,
within thirty (30) days after its receipt of an invoice therefor, the costs
incurred by Landlord for (x) extra cleaning work in the Premises required
because of (i) misuse on the part of Tenant or its subtenants, Users or its or
their employees or visitors, and (ii) materials and finishes installed by
Tenant or at its request which are unusually difficult or time-consuming to
clean, (if cleaning thereof is requested by Tenant), and (y) removal from the
Premises and the Building of any refuse and rubbish of Tenant in excess of that
ordinarily

 

48

 

accumulated in business
office occupancy, including, without limitation, kitchen refuse, or at times
other than Landlord’s standard cleaning times.

 

(ii)           Tenant shall not clean, nor require, permit, suffer or allow any
windows in the Premises to be cleaned, from the outside in violation of Section
202 of the Labor Law, or any other applicable law.

 

15.03.      Tenant shall have the right to access and use, without additional
charge therefor, at least such share of all Building utility and
telecommunication shaft ways, risers, conduits and utility closets serving the
office portions of the Building as shall equal the share (the “Tenant Shaft
Share”) being used by the occupant of the Premises immediately prior to
Tenant.  Tenant shall have the right, at
Tenant’s cost and expense, to remove from the Tenant Shaft Share areas, all
wiring, cabling and other telecommunications equipment present on the
Commencement Date.

 

15.04.      Subject to the provisions of Section 34.04(b) and Article 19 and 20
hereof, Landlord reserves the right, without liability to Tenant and without it
being deemed a constructive eviction, to stop or interrupt any heating,
elevator, escalator, lighting, ventilating, air-conditioning, steam, power,
electricity, water, cleaning or other service and to stop or interrupt the use
of any Building facilities and systems at such times, in either case, as may be
necessary and for as long as may reasonably be required by reason of accidents,
strikes, or the making of repairs, alterations or improvements, or inability to
secure a proper supply of fuel, gas, steam, water, electricity, labor or
supplies, or by reason of any other similar or dissimilar cause beyond the
reasonable control of Landlord.  Subject
to the provisions of Section 34.04(b) and Article 19 and 20 hereof, no such
stoppage or interruption shall result in any liability from Landlord to Tenant
or entitle Tenant to any diminution or abatement of rent or other compensation
nor shall this Lease or any of the obligations of Tenant be affected or reduced
by reason of any such stoppage or interruption.  Except in emergency circumstances, Landlord shall give Tenant at
least ten (10) Business Days prior written notice (“Landlord’s Stoppage Notice”)of its intention to make any repairs, alterations or improvements
referred to in this Section 15.04 or any other stoppages or interruptions or
reductions of services of which Landlord has prior knowledge or notice.  Such Landlord Stoppage Notice shall state
the date, time and estimated duration of such stoppage, interruption or
reduction.  Landlord shall use
reasonable efforts in making such repairs, alterations or improvements and in
dealing with such other stoppages of service so as to minimize interference
with Tenant’s business operations, including the performance of such work on an
overtime or premium-pay basis to the extent required of a Unit Owner under the
Declaration.

 

15.05.      Tenant may, at Tenant’s sole cost and expense, install, maintain and
operate in a portion of the Premises a food preparation, service and/or dining
facility (the “Food Service Facility”)  for use by the officers, employees and
guests of Tenant or any permitted occupant of the Premises, including
appropriate food and beverage preparation, handling, cooking, serving and/or
dining and/or other associated facilities, provided that Tenant shall (a)
comply with all applicable laws, ordinances and regulations with respect to
such Food Service Facility and its operations, (b) cause all food preparation
areas to be properly ventilated so that no odor shall emanate from the Premises
to any other portion of the Building, (c) maintain such Food Service

 

49

 

Facility in a clean and
sanitary condition and free of refuse at all times, and (d) bag all wet garbage
and place the same in containers within the Premises that prevent the escape of
odor and remove all such wet garbage from the Building at Tenant’s sole cost
and expense.  All of the provisions of
this Lease shall be applicable to the installation, maintenance and operation
of the Food Service Facility.

 

15.06.      Tenant acknowledges that it is currently a member of The New York Times
Building Company and is a member of the Condominium Board of Managers.  For so long as Tenant (or a Tenant
Affiliate) is a member of the Condominium Board of Managers, Tenant will not
willfully and intentionally exercise its voting rights to prevent or materially
hinder Landlord from providing the services that Landlord is obligated to
provide to Tenant or the Premises under this Lease.  The provisions of this Section 15.06 shall have no application whatsoever
in the event of failure by Landlord to fund any monetary obligations owed by
Landlord to the Board of Managers after a final adjudication that such monetary
obligations are owed to the Condominium Board of Managers.(15)

 

ARTICLE
16

Access

 

16.01.      Landlord and persons authorized by Landlord shall have the right, upon
reasonable advance notice, except in cases of emergency, to enter and/or pass
through the Premises at reasonable times provided Landlord shall use reasonable
efforts to minimize any interference with Tenant’s business operations and use
of the Premises and shall be accompanied by a designated representative of
Tenant,

 

(a)           to examine the Premises and to show them to
actual and prospective lessors under the Unit Lease, Superior Mortgagees or
Superior Lessors, or prospective purchasers, mortgagees or lessees of the Unit,

 

(b)           to make such repairs, alterations, additions
and improvements in or to the Premises as Landlord is required to make under
this Lease or by applicable Legal Requirements (unless Tenant specifically
waives in writing Landlord’s obligation to make any such repairs, alterations,
additions and improvements required under this Lease or by applicable Legal
Requirements), and

 

(15) If and for so long
as the “Landlord” under this Lease is (A)(i) Ground Lessor and (ii) a
governmental entity or a public benefit corporation, or (B) the party who
acquires the interest of the “Landlord” under this Lease from such governmental
entity or public benefit corporation (but not any other party who becomes the
“Landlord” under this Lease), the provisions of this sentence shall not be
appllicable.

 

50

 

(c)           to read any utility meters located therein.

 

Landlord and such authorized
persons shall be allowed to take reasonable amounts of materials into and upon
the Premises that may be required in connection therewith, without any
liability to Tenant and without any reduction of Tenant’s covenants and
obligations hereunder provided, however, the amount and placement of such
materials shall not interfere with the conduct of Tenant’s business except to a
de minimis extent.  Except as provided in Section 13.03 with
respect to clause (b) of this Section 16.01, Landlord shall perform any work or
activity pursuant to this Section 16.01 which would interfere with Tenant’s
conduct of business in or use of the Premises, other than to a de minimis extent, during hours other than
Business Hours of Business Days at Landlord’s sole cost and expense.

 

16.02.      If at any time any windows of the Premises are either temporarily
darkened or obstructed by reason of any repairs, improvements, maintenance
and/or cleaning in or about the Building (or permanently darkened or obstructed
if required by law), the same shall be without liability to Landlord and without
any reduction or diminution of Tenant’s obligations under this Lease.

 

16.03.      If Tenant shall not be personally present to open and permit an entry
into the Premises at any time when for any reason an entry therein shall be
urgently necessary by reason of fire or other emergency, Landlord or Landlord’s
agents may forcibly enter the same without rendering Landlord or such agents
liable therefor (if during such entry Landlord or Landlord’s agents shall
accord reasonable care to the Premises and Tenant’s Property therein) and
without in any manner affecting the obligations and covenants of this Lease.

 

16.04.      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).  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 which are deemed Landlord’s
property pursuant to Section 12.01 hereof 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), failing which Tenant may offset such amounts,
together with interest thereon at the Interest Rate from the date incurred by
Tenant until reimbursed to or offset by Tenant, against the next installment of
Fixed Rent and/or Additional Charges payable under this Lease.

 

16.05.      Landlord acknowledges that Tenant may, from time to time, have certain
security or confidentiality requirements such that portions of the Premises
shall be locked and inaccessible to persons unauthorized by Tenant (the “Secured Areas”).  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 of
the Premises designating

 

51

 

the Secured Areas,(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, and (iii) Landlord shall have no obligation to
provide to the Secured Areas cleaning services or any other services or repairs
that require access to the Secured Areas unless Tenant shall provide Landlord
with such access to the Secured Areas for purposes of providing such cleaning
services or other services or repairs at those times that Landlord shall
reasonably designate in accordance with Landlord’s ordinary Building schedule.

 

ARTICLE
17

Notice of Occurrences

 

17.01.      Tenant shall give notice to Landlord, the Board of Managers and the FC
Board of Managers of (a) any occurrence in or about the Premises for which
Landlord might be liable, (b) any fire or other casualty in the Premises, (c)
any damage to or defect in the Premises, including the fixtures, equipment and
appurtenances thereof, for the repair of which Landlord might be responsible,
and (d) any damage to or defect in any part or appurtenance of the Building’s
sanitary, electrical, heating, ventilating, air-conditioning, elevator or other
systems located in or passing through the Premises or any part thereof, if and
to the extent that Tenant shall have knowledge of any of the foregoing matters.

 

ARTICLE
18

Indemnification

 

18.01.      Subject to the terms of Article 9 hereof relating to waivers of
subrogation, Tenant shall indemnify and defend Landlord (including Landlord’s
shareholders, officers, directors, partners, joint venturers and agents) and
save it harmless from and against any and all liability, damages, costs or
expenses, including reasonable attorneys’ fees, arising from the negligence of
Tenant or its officers, contractors, licensees, agents, employees, or visitors
in or about the Premises.  This
provision shall not be construed to make Tenant responsible for loss, damage,
liability or expense resulting from injuries to third parties if (but only to
the extent) caused by the gross negligence or willful misconduct of Landlord,
or its officers, contractors, directors, shareholders, partners, joint venturers,
licensees, agents, employees, or invitees.

 

18.02.      Subject to the terms, conditions, restrictions and limitations
elsewhere contained in this Lease, Landlord shall indemnify Tenant and save
Tenant harmless from and against any and all liability, actual damages (not
consequential damages), costs or expenses, including reasonable attorneys’
fees, to third parties arising from the negligence of Landlord or its officers,
contractors, agents or employees in or about the FC Office Units (other than
the Premises).  This provision shall not
be construed to make Landlord responsible for loss, damage, liability or
expense resulting from injuries to third parties caused by the gross negligence
or willful misconduct of Tenant or its officers, contractors, licensees,
agents, employees or invitees.

 

52

 

18.03.      If any action or proceeding is brought against a person entitled to
indemnification hereunder, the indemnifying party shall have the right to
participate in the defense of same with counsel of its choice, who shall be
reasonably satisfactory to the party benefiting from the indemnity, and
insurance company counsel shall be deemed satisfactory.

 

18.04.      Notwithstanding the foregoing provisions of this Article 18 or any
other provision of this Lease (except as provided in Section 21.03(b) hereof),
(i) Landlord shall not be liable to Tenant for consequential damages, and (ii)
Tenant shall not be liable to Landlord for consequential damages, in either
case even if arising from any act, omission or negligence of such party or from
the breach by such party of its obligations under this Lease.

 

18.05       Notwithstanding anything to the contrary provided in this Lease, in the
event of any liability of Landlord to Tenant arising by reason of this Lease,
Tenant agrees that it shall have recourse only to the estate of Landlord and
Landlord Affiliates in the FC Office Units and the proceeds of any sale of the
FC Office Units or any part thereof, and no other property or assets of Landlord
or Landlord Affiliates, and their respective agents, officers, directors,
shareholders, partners, members or principals, disclosed or undisclosed, shall
be subject to levy, recourse, execution or other enforcement procedure for the
satisfaction of Tenant’s remedies under or with respect to this Lease, the
relationship of Landlord and Tenant hereunder or under law or Tenant’s use or
occupancy of the Premises or any other liability of Landlord to Tenant.

 

ARTICLE
19

Damage or Destruction

 

19.01.      If the Building or the Premises shall be partially or totally damaged
or destroyed by fire or other casualty (and if this Lease shall not be
terminated as in this Article 19 hereinafter provided), then in the event that
the Condominium Board of Managers elects to repair the damage to and restore
and rebuild the Building diligently and in a workmanlike manner after notice to
it of the damage or destruction, Tenant shall (x) at Tenant’s option, restore
all or such portion of Tenant’s Property as Tenant may elect to restore and (y)
at Tenant’s option, to be exercised separately with respect to each floor of
the Premises, either

 

(i)            repair the damage to and restore such portion
of the leasehold improvements in the Premises as Tenant elects in its sole
discretion (the “Improvements Restoration
Work”); or

 

(ii)           demolish the leasehold improvements located
in the Premises (the “Improvements Demolition
Work”),

 

which Improvements
Restoration Work or Improvements Demolition Work (as the case may be) shall be
performed diligently and in a workmanlike manner after the substantial
completion repairs and restoration of the Building.

 

53

 

The Improvements Restoration
Work and the Improvements Demolition Work shall be deemed to constitute
Alterations for the purposes of Article 11 hereof and shall be subject to the
provisions of Article 11.

 

The
proceeds of policies providing coverage for leasehold improvements installed in
the Premises shall be paid to Tenant, to be used by Tenant to perform the
Improvements Restoration Work and/or the Improvements Demolition Work (as the
case may be), to the extent Tenant is required to perform the same, and
otherwise to be retained by Tenant.

 

Tenant
shall be solely responsible for (i) the amount of any deductible under the
policy insuring the leasehold improvements and (ii) the amount, if any, by
which the cost of the Improvements Restoration Work and/or the Improvements
Demolition Work (as the case may be) exceeds the available insurance proceeds therefor.

 

Notwithstanding
any of the provisions of this Section 19.01 to the contrary, if Landlord or any
Landlord Affiliate executes any lease for space in the Building that contains a
provision that Landlord or such Landlord Affiliate will be obligated under the
circumstances provided in such provision to restore any damaged or destroyed
space or cause the Condominium Board of Managers to perform such restoration,
then Landlord shall give Tenant prompt notice thereof (or will respond to a
request from Tenant to do so within 30 days of such request), and, at Tenant’s
election, Landlord and Tenant will promptly cause this Lease to be amended to
incorporate such provision into this Lease.(16)

 

19.02.      If on account of fire or other casualty, all or a part of the Premises
shall be rendered untenantable (whether as a result of damage or destruction to
the Premises or damage or destruction to other parts of the Building) the Fixed
Rent and the Additional Charges under Article 3 hereof shall be abated in the
proportion that the untenantable area of the Premises bears to the total area
of the Premises (and if more than seventy-five (75%) percent of a floor shall
be rendered untenantable, then the entire floor shall be deemed to have been
rendered untenantable) for the period from the date of the damage or
destruction to the date on which:

 

(i)            the repair and restoration of the Building
(including all base building systems serving the Premises) shall have been
substantially completed (the “Basic
Restoration”); and

 

(ii)           the damaged leasehold improvements could be
restored, with due diligence and dispatch (commencing after Landlord’s
substantial completion of the restoration of the Building including all base
building systems serving the

 

(16)         This provision will only
be applicable if the Premises (aggregated with all prior space leased by Tenant
and Tenant Affiliates in the FC Office Units) is comprised of at least one (1)
full floor.

 

54

 

Premises)
with materials of like kind and quality to the same condition as existed prior
to such damage;

 

provided, however, should
Tenant reoccupy a portion of the Premises for the conduct of business during
the period the repair work is taking place and prior to the date that the Premises
are substantially repaired or made tenantable, the Fixed Rent and the
Additional Charges allocable to such reoccupied portion, based upon the
proportion which the area of the reoccupied portion of the Premises bears to
the total area of the Premises, shall be payable by Tenant from the date of
such occupancy.

 

19.03.      If the Building shall be totally damaged or destroyed by fire or other
casualty, or the Building shall be so damaged or destroyed by fire or other
casualty that the Condominium Board of Managers shall have elected not to
repair and restore the Building, then Landlord may terminate this Lease by
giving Tenant notice to such effect (“Landlord’s
Casualty Termination Notice”) as soon as practicable under the
circumstances.  If the Condominium Board
of Managers shall elect not to repair and restore the Building, and if Landlord
shall not dispute such election, then, at Tenant’s option, Landlord shall
assign to Tenant, such rights of Landlord as may be reasonably required by
Tenant in order to bring an action or proceeding against the Condominium Board
of Managers for its failure to effect such repairs and restoration.

 

19.04.      (a)           If any portions of the Building required for
reasonable access to the Premises or the provision of any services to the
Premises required under this Lease (“Base
Building Elements”)  are
damaged or destroyed by fire or other casualty and Landlord and/or the Board of
Managers is required to or elects to repair and restore the Base Building
Elements, Landlord shall, within 60 days after such damage or destruction,
provide Tenant with a written notice of the estimated date on which the
restoration shall be substantially completed (“Base
Building Restoration Estimate”).  If such estimated date is more
than twelve (12) months after the date of such damage or destruction, Tenant
may terminate this Lease by notice to Landlord, which notice shall be given
within sixty (60) days after the date Landlord provides the Base Building
Restoration Estimate, and such termination shall be effective upon the giving
of Tenant’s notice.  If Tenant elects
not to terminate this Lease, and if Landlord and/or the Board of Managers, as
applicable, has not substantially completed the required repairs and restored
the Base Building Elements within the period originally estimated by Landlord
or within such period thereafter (not to exceed 3 months) as shall equal the
aggregate period Landlord may have been delayed in doing so by Force Majeure
Causes, then Tenant shall have the further right to elect to terminate this
Lease upon written notice to Landlord and such election shall be effective upon
the date of such notice.  Tenant shall
have the right to submit any dispute as to the determination of the Base
Building Restoration Estimate pursuant to this Section 19.04(a) to Expedited
Arbitration.

 

(b)           If the Premises or any part thereof shall be damaged by fire or other
casualty as set forth in Article 9, whether or not any other portions of the
Building or Base Building Elements have also been damaged, and the Base
Building Restoration Estimate provides that the estimated time period to
complete the repairs and restoration to the Premises, which time period shall
be aggregated with the time period required to complete the repairs and
restoration of

 

55

 

any Base Building Elements
if same have also been damaged, is more than twelve (12) months after the date
of such damage or destruction, Tenant may terminate this Lease by notice to
Landlord, which notice shall be given within sixty (60) days after the date
Landlord provides the Base Building Restoration Estimate, and such termination
shall be effective upon the giving of Tenant’s notice.  Tenant shall have the right to submit any
dispute as to the determination of the Base Building Restoration Estimate
pursuant to this Section 19.04(b) to Expedited Arbitration.

 

19.05.      Landlord and Tenant shall fully cooperate with each other in connection
with the collection of any insurance proceeds payable in respect of any casualty
to the Building and shall comply with all reasonable requests made by each
other in connection therewith, including, without limitation, the execution of
any affidavits required by the applicable insurance companies.

 

19.06.      Except to the extent expressly set forth in this Article 19, Tenant
shall not be entitled to terminate this Lease and Landlord shall have no
liability to Tenant for inconvenience, loss of business or annoyance arising
from any repair or restoration of any portion of the Premises or of the
Building pursuant to this Article 19.

 

19.07.      Landlord will not carry insurance of any kind on Tenant’s Property or
on Tenant’s leasehold improvements and shall not be obligated to repair any
damage to or replace any of the foregoing and Tenant agrees to look solely to
its insurance for recovery of any damage to or loss of any of the foregoing.

 

19.08.      The provisions of this Article 19 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.

 

ARTICLE
20

Eminent Domain

 

20.01.      If the whole of the Building or the Premises shall be taken by
condemnation or in any other manner for any public or quasi-public use or
purpose, this Lease and the term and estate hereby granted shall terminate as
of the date of vesting of title on such taking (“Date of the Taking”), and the Fixed Rent and Additional
Charges shall be prorated and adjusted as of such date.

 

20.02.      If a portion of the Building or the Premises shall be so taken and the
Condominium Board of Managers shall elect in accordance with the Declaration
not to rebuild the or restore the balance of the Building, then this Lease and
the term and estate hereby granted shall terminate as of the date such election
is made, and the Fixed Rent and Additional Charges shall be prorated and
adjusted as of such date.

 

56

 

If
forty (40%) percent or more of the Premises or any Base Building Elements shall
be so taken and the Premises or the remaining area of the Premises, as the case
may be, shall no longer be sufficient or suitable, in Tenant’s reasonable
judgment, for Tenant to continue the operation of its business, Tenant may, at
its option, terminate this Lease by giving Landlord notice to that effect
within 90 days after the Date of the Taking.

 

In
case of any termination pursuant to this Section 20.02, this Lease shall
terminate on the date that such notice from Landlord or Tenant to the other
shall be given, and the Fixed Rent and Additional Charges shall be prorated and
adjusted as of such termination date, except that with respect to any portion
of the Premises taken the Fixed Rent and Additional Charges shall be prorated
and adjusted as of the Date of the Taking if earlier.

 

Upon
any partial taking of the Premises and this Lease continuing in force as to any
part of the Premises, the Fixed Rent and Additional Charges shall be adjusted
according to the rentable area remaining.

 

20.03.                  The award or payment in connection with any
taking shall be payable to Landlord; provided, however, that Tenant shall have
the right to make a separate claim for its moving expenses and for any of
Tenant’s Property and Alterations taken.

 

20.04.                  If the temporary use or occupancy of all or
any part of the Premises shall be taken by condemnation or in any other manner
for any public or quasi-public use or purpose during the term of this Lease,
Tenant shall be entitled, except as hereinafter set forth, to receive that
portion of the award or payment for such taking which represents compensation
for the use and occupancy of the Premises, for the taking of Tenant’s Property
and for moving expenses, and Landlord shall be entitled to receive that portion
which represents reimbursement for the cost of restoration of the Premises.
This Lease shall be and remain unaffected by such taking and Tenant shall
continue to be responsible for all of its obligations hereunder insofar as such
obligations are not affected by such taking and shall continue to pay in full
the Fixed Rent and Additional Charges when due. If the period of temporary use
or occupancy shall extend beyond the Expiration Date of this Lease, that part
of the award which represents compensation for the use and occupancy of the
Premises (or a part thereof) shall be divided between Landlord and Tenant so
that Tenant shall receive so much thereof as represents the period up to and
including such Expiration Date and Landlord shall receive so much thereof as
represents the period after such Expiration Date. All monies paid as, or as
part of, an award for temporary use and occupancy for a period beyond the date
to which the Fixed Rent and Additional Charges have been paid shall be
received, held and applied by Landlord as a trust fund for payment of the Fixed
Rent and Additional Charges becoming due hereunder.

 

20.05.                  In the event of a taking of less than the
whole of the Building and/or the Land which does not result in termination of
this Lease, or in the event of a taking for a temporary use or occupancy of all
or any part of the Premises which does not result in a termination of this
Lease, after the Condominium Board of Managers shall proceed to repair the
remaining parts of 

 

57

 

the Building and the Premises (other than
those parts of the Premises which are deemed Landlord’s property pursuant to
Section 12.01 hereof and Tenant’s Property) to substantially their former
condition to the extent that the same may be feasible (subject to reasonable
changes which Landlord and the Condominium Board of Managers shall deem
desirable) and so as to constitute complete and rentable Building and Premises,
then Tenant, at its expense, and whether or not any award or awards shall be
sufficient for the purpose, shall proceed with reasonable diligence to repair
the remaining parts of the Premises which are deemed Landlord’s property
pursuant to Section 12.01 hereof and Tenant’s Property, to substantially their
former condition to the extent that the same may be feasible, subject to
reasonable changes which shall be deemed Alterations. Notwithstanding anything
to the contrary set forth in this Article 20, the portion of any award which is
allocable to the repairs which Tenant is obligated to perform pursuant to the
preceding sentence shall be paid to Tenant.

 

ARTICLE
21

Surrender

 

21.01.                  On the Expiration Date or upon any earlier
termination of this Lease, or upon any reentry by Landlord upon the Premises,
Tenant shall quit and surrender the Premises to Landlord “broom-clean” and in
good order, condition and repair, except for ordinary wear and tear and damage
or destruction by fire or other casualty or condemnation (subject to Tenant’s
obligations provided in Article 19 or 20, as the case may be) and Tenant shall
remove all of the Tenant’s Property therefrom except as otherwise expressly
provided in this Lease.

 

21.02.                  No act or thing done by Landlord or its
agents shall be deemed an acceptance of a surrender of the Premises, and no
agreement to accept such surrender shall be valid unless in writing and signed
by Landlord.

 

21.03.                  (a)                                  In the event this Lease is terminated in
accordance with its terms or this Lease is not renewed or extended or a new
Lease is not entered into between the parties, and if Tenant shall then hold
over after the expiration or sooner termination of the term of this Lease, the
parties hereby agree that Tenant’s occupancy of the Premises after the
expiration or sooner termination of the term of this Lease shall be under a
month-to-month tenancy commencing on the first day after the expiration or
sooner termination of the term of this Lease, which tenancy shall be upon all
of the terms set forth in this Lease except Tenant shall pay on the first day
of each month of the holdover period as Fixed Rent, an amount equal to the
product obtained by multiplying (x) one-twelfth of the sum of the Fixed Rent
payable by Tenant during the last year of the term of this Lease (i.e.,
the year immediately prior to the holdover period) by (y) (i) hundred ten
(110%) percent for the first month of such month-to-month tenancy, (ii) one
hundred twenty-five (125%) percent for the next month of such month-to-month
tenancy, (iii) one hundred fifty (150%) percent for the next month of such
month-to-month tenancy, and (iv) two hundred (200%) percent thereafter.

 

58

 

(b)                                 Landlord shall not be required to perform any
work during the holdover period, provided, however, that Landlord shall
continue to be obligated to make all required repairs within the Premises that
are Landlord’s obligation under this Lease. If Tenant shall hold-over beyond
the expiration or sooner termination of this Lease and thereafter for more than
one hundred fifty (150) days, then the provisions of clause (ii) of Section
18.04 hereof shall not be applicable to any claims by Landlord against Tenant
for consequential damages in the event that Tenant holds over for more than one
hundred fifty (150) days and Tenant agrees that it shall be liable to Landlord
for Landlord’s consequential damages in the event that Tenant holds over for
more than one hundred fifty (150) days.

 

ARTICLE 22

Conditions of Limitation

 

22.01.                  This Lease and the term and estate hereby
granted are subject to the limitation that whenever Tenant, or any guarantor of
Tenant’s obligations under this Lease, shall make an assignment for the benefit
of creditors, or shall file a voluntary petition under any bankruptcy or
insolvency law, or an involuntary petition alleging an act of bankruptcy or
insolvency shall be filed against Tenant or such guarantor under any bankruptcy
or insolvency law, or whenever a petition shall be filed by or against Tenant
or such guarantor under the reorganization provisions of the United States
Bankruptcy Code or under the provisions of any law of like import, or whenever
a petition shall be filed by Tenant, or such guarantor, under the arrangement
provisions of the United States Bankruptcy Code or under the provisions of any
law of like import, or whenever a permanent receiver of Tenant, or such
guarantor, or of or for the property of Tenant, or such guarantor, shall be
appointed, then Landlord (a) if such event occurs without the acquiescence of
Tenant, or such guarantor, as the case may be, at any time after the event
continues for ninety (90) days, or (b) in any other case at any time after the
occurrence of any such event, may give Tenant a notice of intention to end the
term of this Lease at the expiration of five days from the date of service of
such notice of intention, and upon the expiration of said five-day period this
Lease and the term and estate hereby granted, whether or not the term shall
theretofore have commenced, shall terminate with the same effect as if that day
were the expiration date of this Lease, but Tenant shall remain liable for
damages as provided in Article 24 hereof.

 

22.02.                  This Lease and the term and estate hereby
granted are subject to the further limitations that in the event that any of
the following (each, an “Event of Default”) shall occur:

 

(a)                                    if Tenant shall default in the payment of any
Fixed Rent or Additional Charges, and such default shall continue for ten (10)
days after written notice thereof has been received by Tenant, or

 

(b)                                   if Tenant shall, whether by action or
inaction, be in default of any of its obligations under this Lease (other than
a default in the payment of Fixed Rent or Additional Charges) and such default
shall continue and not be remedied within twenty-five (25) days after Landlord
shall have given to Tenant a notice specifying

 

59

 

the same, or, in the case of
a default which cannot with due diligence be cured within a period of
twenty-five (25) days (a “Long-Term Cure
Default”),  if Tenant
shall not (x) within said twenty-five (25) day period advise Landlord of Tenant’s
intention to take all steps reasonably necessary to remedy such Long-Term Cure
Default, (y) duly commence within said 20-day period, and thereafter diligently
prosecute to completion all steps reasonably necessary to remedy such Long-Term
Cure Default and (z) complete such remedy within a reasonable time after the
date of said notice of Landlord; provided, however, that the foregoing
extension of the cure period beyond twenty-five (25) to cure a Long-Term Cure
Default shall not apply if the continuance of such Long-Term Cure Default for
the period required for cure would (A) subject Landlord or the lessor under the
Unit Lease or any Superior Mortgagee or Superior Lessor to prosecution for a
crime, (B) subject the Premises or any part thereof or the Building or Land, or
any part thereof, to being condemned or vacated or (C) result in the
termination of the Unit Lease or any Superior Lease or foreclosure of any
Superior Mortgage; or

 

(c)                                  Tenant shall fail to maintain in full force
and effect any of the insurance policies that it is required to maintain
pursuant to Article 9 which failure continues for more than ten (10) days after
Landlord shall have given Tenant a notice specifying same;

 

then
in any of said cases Landlord, during the continuance of such default, may give
to Tenant a notice of intention to end the term of this Lease at the expiration
of five (5) days from the date of the service of such notice of intention, and
upon the expiration of said five days this Lease and the term and estate hereby
granted, whether or not the term shall theretofore have commenced, shall
terminate with the same effect as if that day was the day herein definitely
fixed for the end and expiration of this Lease, but Tenant shall remain liable
for damages as provided in Article 24 hereof.

 

22.03.                  If Tenant shall have assigned its interest in
this Lease, and this Lease shall thereafter be disaffirmed or rejected in any
proceeding under the United States Bankruptcy Code or under the provisions of
any Federal, state or foreign law of like import, or in the event of
termination of this Lease by reason of any such proceeding, the Tenant named
herein or any subsequent assignor of its interest under this Lease, upon
request of Landlord given within ninety (90) days after such disaffirmance or
rejection shall (a) pay to Landlord all Fixed Rent and Additional Charges then
due and payable to Landlord under this Lease to and including the date of such
disaffirmance or rejection and (b) enter into a new lease as lessee with
Landlord of the Premises for a term commencing on the effective date of such
disaffirmance or rejection and ending on the Expiration Date, unless sooner
terminated as in such lease provided, at the same Fixed Rent and Additional
Charges and upon the then executory terms, covenants and conditions as are
contained in this Lease, except that (i) the rights of the lessee under the new
lease, shall be subject to any possessory rights of the assignee in question
under this Lease and any rights of persons claiming through or under such
assignee, (ii) such new lease shall require all defaults existing under this
Lease to be cured by the lessee with reasonable diligence, and (iii) such new

 

60

 

lease shall require the lessee to pay all
Additional Charges which, had this Lease not been disaffirmed or rejected,
would have become due after the effective date of such disaffirmance or
rejection with respect to any prior period. If the lessee shall fail or refuse
to enter into the new lease within ten (10) days after Landlord’s request to do
so, then in addition to all other rights and remedies by reason of such
default, under this Lease, at law or in equity, Landlord shall have the same
rights and remedies against the lessee as if the lessee had entered into such
new lease and such new lease had thereafter been terminated at the beginning of
its term by reason of the default of the lessee thereunder.

 

ARTICLE 23

Reentry by Landlord

 

23.01.                   If an Event of Default shall occur, or if
this Lease shall terminate as provided in Article 22 hereof, Landlord or
Landlord’s agents and employees may, in the case of any such default, during
the continuance thereof, or in case of any such termination, immediately or at
any time thereafter reenter the Premises, or any part thereof, either by
summary dispossess proceedings or by any suitable action or proceeding at law,
or by force or otherwise, without being liable to indictment, prosecution or
damages therefor, and may repossess the same, and may remove any person
therefrom, to the end that Landlord may have, hold and enjoy the Premises. The
word “reenter,” as used herein, is not restricted to its technical legal
meaning. If this Lease is terminated under the provisions of Article 22, or if
Landlord shall reenter the Premises under the provisions of this article, or in
the event of the termination of this Lease, or of reentry, by or under any
summary dispossess or other proceeding or action or any provision of law by
reason of default hereunder on the part of Tenant, Tenant shall thereupon pay
to Landlord the Fixed Rent and Additional Charges payable up to the time of
such termination of this Lease, or of such recovery of possession of the
Premises by Landlord, as the case may be, and shall also pay to Landlord
damages as provided in Article 24 hereof.

 

23.02.                   In the event of a breach or threatened breach
by Tenant of any of its obligations under this Lease, Landlord shall also have
the right of injunction. The special remedies to which Landlord may resort hereunder
are cumulative and are not intended to be exclusive of any other remedies to
which Landlord may lawfully be entitled at any time and Landlord may invoke any
remedy allowed at law or in equity as if specific remedies were not provided
for herein.

 

23.03.                   If this Lease shall terminate under the
provisions of Article 22 hereof, or if Landlord shall reenter the Premises
under the provisions of this Article 23, or in the event of the termination of
this Lease, or of reentry, by or under any summary dispossess or other
proceeding or action or any provision of law by reason of default hereunder on
the part of Tenant, Landlord shall be entitled to retain all monies, if any,
paid by Tenant to Landlord, whether as advance rent, security or otherwise, but
such monies shall be credited by Landlord against any Fixed Rent or Additional
Charges due from Tenant at the time of such termination or reentry or, at
Landlord’s option, against any damages payable by Tenant under Article 24
hereof or pursuant to law.

 

61

 

ARTICLE 24

Damages

 

24.01.                  If this Lease is terminated under the
provisions of Article 22 hereof, or if Landlord shall reenter the Premises
under the provisions of Article 23 hereof, or in the event of the termination
of this Lease, or of reentry, by or under any summary dispossess or other
proceeding or action or any provision of law by reason of default hereunder on
the part of Tenant, Tenant shall pay to Landlord as damages, at the election of
Landlord, either:

 

(a)                                 a sum which at the time of such termination
of this Lease or at the time of any such reentry by Landlord, as the case may
be, represents the then value of the excess, if any (assuming a discount at a
rate per annum equal to the interest rate then applicable to 7-year Federal
Treasury Bonds), of (i) the aggregate amount of the Fixed Rent and the
Additional Charges under Article 3 hereof which would have been payable by
Tenant (conclusively presuming the average monthly Additional Charges under
Article 3 hereof to be the same as were payable for the last 12 calendar
months, or if less than 12 calendar months have then elapsed since the
Commencement Date, all of the calendar months immediately preceding such
termination or reentry) for the period commencing with such earlier termination
of this Lease or the date of any such reentry, as the case may be, and ending
with the date contemplated as the expiration date hereof if this Lease had not
so terminated or if Landlord had not so reentered the Premises, over (ii) the
aggregate fair market rental value of the Premises for the same period, or

 

(b)                                sums equal to the Fixed Rent and the
Additional Charges under Article 3 hereof which would have been payable by
Tenant had this Lease not so terminated, or had Landlord not so reentered the
Premises, payable upon the due dates therefor specified herein following such
termination or such reentry and until the date contemplated as the expiration
date hereof if this Lease had not so terminated or if Landlord had not so
reentered the Premises, provided, however, that
if Landlord shall relet the Premises during said period, 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 expenses incurred or paid by
Landlord in terminating this Lease or in reentering the Premises and in
securing possession thereof, as well as the expenses of reletting, including,
without limitation, altering and preparing the Premises for new tenants,
brokers’ commissions, reasonable legal fees, and all other expenses properly
chargeable against the Premises and the rental therefrom, it being understood
that any such reletting may be for a period shorter or longer than the remaining
term of this Lease; but in no event shall Tenant be entitled to receive any
excess of such net rents over the sums payable by Tenant to Landlord hereunder,
nor shall Tenant be entitled in any suit for the collection of damages pursuant
to this subdivision to a credit in respect of any net rents from a reletting,

 

62

 

except to the extent that
such net rents are actually received by Landlord. If the Premises or any part
thereof should be relet in combination with other space, then proper
apportionment on a square foot basis shall be made of the rent received from
such reletting and of the expenses of reletting.

 

If the Premises or any part
thereof be relet by Landlord for the greater of ten (10) years or the unexpired
portion of the term of this Lease, or any part thereof, before presentation of
proof of such damages to any court, commission or tribunal, the amount of rent
reserved upon such reletting shall, prima facie, be the fair and reasonable
rental value for the Premises, or part thereof, so relet during the term of the
reletting. Landlord shall not be liable in any way whatsoever for its failure
or refusal to relet the Premises or any part thereof, or if the Premises or any
part thereof are relet, for its failure to collect the rent under such
reletting, and no such refusal or failure to relet or failure to collect rent
shall release or affect Tenant’s liability for damages or otherwise under this
Lease.

 

24.02.                  Suit or suits for the recovery of such damages,
or any installments thereof, may be brought by Landlord from time to time at
its election, and nothing contained herein shall be deemed to require Landlord
to postpone suit until the date when the term of this Lease would have expired
if it had not been so terminated under the provisions of Article 22 hereof, or
had Landlord not reentered the Premises. Nothing herein contained shall be
construed to limit or preclude recovery by Landlord against Tenant of any sums
or damages to which, in addition to the damages particularly provided above,
Landlord may lawfully be entitled by reason of any default hereunder on the
part of Tenant. Nothing herein contained shall be construed to limit or
prejudice the right of Landlord to prove for and obtain as damages by reason of
the termination of this Lease or reentry on the Premises for the default of
Tenant under this Lease an amount equal to the maximum allowed by any statute
or rule of law in effect at the time when, and governing the proceedings in
which, such damages are to be proved whether or not such amount be greater than
any of the sums referred to in Section 24.01 hereof.

 

ARTICLE 25

Affirmative Waivers

 

25.01.                   Tenant, on behalf of itself and any and all
persons claiming through or under Tenant, does hereby waive and surrender all
right and privilege which it, they or any of them might have under or by reason
of any present or future law, to redeem the Premises or to have a continuance
of this Lease after being dispossessed or ejected therefrom by process of law
or under the terms of this Lease or after the termination of this Lease as
provided in this Lease.

 

25.02.                   If Tenant is in arrears in payment of Fixed
Rent or Additional Charges, Tenant waives Tenant’s right, if any, to designate
the items to which any payments made by Tenant are to be credited, and Tenant
agrees that Landlord may apply any payments made by Tenant to such items as
Landlord sees fit, irrespective of and notwithstanding any designation or
request by Tenant as to the items which any such payments shall be credited.

 

63

 

25.03.                  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 of
the Premises, including, without limitation, any claim of injury or damage, and
any emergency and other statutory remedy with respect thereto.

 

25.04.                  Tenant waives the right to interpose any
counterclaim of any kind in any action or proceeding commenced by Landlord to
recover possession of the Premises (other than compulsory counterclaims).

 

ARTICLE 26

No Waivers

 

26.01.                   The failure of either party to insist in any
one or more instances upon the strict performance of any one or more of the
obligations of this Lease, or to exercise any election herein contained, shall
not be construed as a waiver or relinquishment for the future of the
performance of such one or more obligations of this Lease or of the right to
exercise such election, and such right to insist upon strict performance shall
continue and remain in full force and effect with respect to any subsequent
breach, act or omission. The receipt by Landlord of Fixed Rent or partial
payments thereof or Additional Charges or partial payments thereof with
knowledge of breach by Tenant of any obligation of this Lease shall not be
deemed a waiver of such breach.

 

26.02.                   If there be any agreement between Landlord
and Tenant providing for the cancellation of this Lease upon certain provisions
or contingencies and/or an agreement for the renewal hereof at the expiration
of the term, the right to such renewal or the execution of a renewal agreement
between Landlord and Tenant prior to the expiration of the term shall not be
considered an extension thereof or a vested right in Tenant to such further
term so as to prevent Landlord from canceling this Lease and any such extension
thereof during the remainder of the original term; such privilege, if and when
so exercised by Landlord, shall cancel and terminate this Lease and any such
renewal or extension; any right herein contained on the part of Landlord to
cancel this Lease shall continue during any extension or renewal hereof; any
option on the part of Tenant herein contained for an extension or renewal
hereof shall not be deemed to give Tenant any option for a further extension
beyond the first renewal or extended term.

 

ARTICLE 27

Curing Defaults

 

27.01.                  (a)                                  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 a case of emergency,
and in any other case only if such default continues after the expiration of
the

 

64

 

applicable grace period, if any, and Landlord
has given to Tenant at least ten (10) days prior notice of its intention to
take action under this Section 27.01.

 

(b)                                 Bills for any expenses incurred by Landlord
in connection with any such performance by it for the account of Tenant, and,
if Landlord shall have been the successful party in any action or suit, bills
for all costs, expenses and disbursements of every kind and nature whatsoever,
including reasonable counsel fees, involved in collecting or endeavoring to
collect the Fixed Rent or Additional Charges or any part thereof or enforcing
or endeavoring to enforce any rights against Tenant or Tenant’s obligations
hereunder, under or in connection with this Lease or pursuant to law, including
any such cost, expense and disbursement involved in instituting and prosecuting
summary proceedings or in recovering possession of the Premises after default
by Tenant or upon the expiration or sooner termination of this Lease, and
interest on all sums advanced by Landlord under this Section 27.01 (at the
Interest Rate or the maximum rate permitted by law, whichever is less) may be
sent by Landlord to Tenant monthly, or immediately, at its option, and such
amounts shall be due and payable as Additional Charges in accordance with the
terms of such bills. Notwithstanding anything to the contrary contained in this
Section, Tenant shall have no obligation to pay Landlord’s costs, expenses, or
disbursements in any proceeding in which there shall have been rendered a final
judgment against Landlord, and the time for appealing such final judgment shall
have expired.

 

27.02.                                                                   If Landlord shall default in the performance
of any of Landlord’s obligations under this Lease, Tenant, without thereby
waiving such default, may (but shall not be obligated to) perform the same for
the account and at the expense of Landlord, without notice in a case of
emergency, and in any other case only if such default shall continue and not be
remedied within the “Landlord Applicable Cure
Period” (as such term is hereinafter defined), and Tenant has given
at least ten (10) days prior notice to Landlord of its intention to take action
under this Section 27.02. All reasonable costs and expenses incurred by Tenant
in connection with any such performance by it for the account of Landlord, and
any expenses referred to in Section 27.03 hereof incurred by Tenant, together
with interest at the Interest Rate or the maximum rate permitted by law,
whichever is less, on all such costs and expenses from the date incurred until
the date paid by Landlord shall be reimbursed by Landlord to Tenant within
thirty (30) days after demand by Tenant therefor. In the event Landlord shall
fail so to reimburse Tenant for such amounts within such thirty (30) day
period, Tenant shall have the right to offset such amounts against the next
installment(s) of Fixed Rent and/or Additional Charges payable under this
Lease. As used herein the term “Landlord
Applicable Cure Period” shall mean thirty (30) days after Tenant
shall have given to Landlord a notice specifying the default, or, in the case
of a default which cannot with due diligence be cured within a period of thirty
(30) days (a “Landlord Long-Term Cure
Default”),  if Landlord
shall not (x) within said thirty (30) day period advise Tenant of Landlord’s
intention to take all steps reasonably necessary to remedy such Landlord
Long-Term Cure Default, (y) duly commence within said thirty (30) day period,
and thereafter diligently prosecute to completion all steps reasonably
necessary to remedy such Landlord Long-Term Cure Default and (z) complete such
remedy within a reasonable time after the date of said notice of Tenant;
provided, however, that the foregoing extension of the cure period beyond
thirty (30) days to cure a Landlord Long-Term Cure Default shall not apply if
the continuance of such

 

65

 

Landlord Long-Term Cure Default for the
period required for cure would (A) subject Tenant to prosecution for a crime,
(B) subject the Premises or any part thereof or the Building or Land, or any
part thereof, to being condemned or vacated or (C) result in the termination of
the Unit Lease, or (D) prevent Tenant from performing or completing any
Alterations required by Tenant for the conduct of its business in the Premises.

 

27.03.                  (a)                                  If Tenant shall have been the successful
party in any action or suit in connection with Landlord’s obligations under
this Lease, Landlord shall reimburse Tenant for all costs, expenses and
disbursements of every kind and nature whatsoever (including reasonable counsel
fees) incurred by Tenant in connection with enforcing or endeavoring to enforce
any rights against Landlord or Landlord’s obligations hereunder, under or in
connection with this Lease or pursuant to law, together with interest at the
Interest Rate or the maximum rate permitted by law, whichever is less, from the
date incurred until the date paid by Landlord.

 

(b)                                 If Landlord shall have been the successful
party in any action or suit in connection with Tenant’s obligations under this
Lease, Tenant shall reimburse Landlord for all costs, expenses and
disbursements of every kind and nature whatsoever (including reasonable counsel
fees) incurred by Landlord in connection with enforcing or endeavoring to
enforce any rights against Tenant or Tenant’s obligations hereunder, under or
in connection with this Lease or pursuant to law, together with interest at the
Interest Rate or the maximum rate permitted by law, whichever is less, from the
date incurred until the date paid by Tenant.

 

ARTICLE 28

Broker

 

28.01.                  (a)                                  Tenant covenants, warrants and represents
that Tenant had no conversations or negotiations with any broker concerning the
leasing of the Premises. Tenant agrees to indemnify and hold harmless Landlord
against and from any claims for any brokerage commissions relative to this
Lease and all costs, expenses and liabilities in connection therewith,
including, without limitation, reasonable attorneys’ fees and expenses, arising
out of any conversations or negotiations had by Tenant with any broker.

 

(b)                                 Landlord covenants, warrants and represents
that. Landlord had no conversations or negotiations with any broker concerning
the leasing of the Premises. Landlord agrees to indemnify and hold harmless
Tenant against and from any claims for any brokerage commissions relative to
this Lease and all costs, expenses and liabilities in connection therewith,
including, without limitation, reasonable attorneys’ fees and expenses, arising
out of any conversations or negotiations had by Landlord with any broker.

 

66

 

ARTICLE
29

Notices

 

29.01.                  Any notice, statement, demand, consent,
approval or other communication required or permitted to be given, rendered or
made by either party to this Lease or pursuant to any applicable law or
requirement of public authority (collectively, “notices”)  shall
be in writing (whether or not so stated elsewhere in this Lease) and shall be
deemed to have been properly given, rendered or made only if sent (i) by
registered or certified mail, return receipt requested, posted in a United
States post office station or letter box in the continental United States, or
(ii) by overnight courier service (e.g., Federal Express) with verification of
delivery requested, addressed to the other party as follows:

 

If
to Landlord:

 

c/o
Forest City Ratner Companies

One
Metro Tech Center North

Brooklyn,
New York 11201

Attn:
General Counsel

 

and
if to Tenant as follows:

 

	
   

  	
  
   

  

  	
   

  
	
   

  	
  
   

  

  	
   

  
	
   

  	
  
   

  

  	
   

  

 

and shall be deemed to have
been given, rendered or made (x) if mailed, on the second Business Day
following the day so mailed, unless mailed to a location outside of the State
of New York, in which case it shall be deemed to have been given, rendered or
made on the third business day after the day so mailed, or (y) if sent by
overnight courier, one (1) Business Day after the day sent. Either party may,
by notice as aforesaid, designate a different address or addresses for notices
intended for it.

 

29.02.                  Notices
hereunder from Landlord may be given by Landlord’s managing agent, if one
exists, or by Landlord’s attorney. Notices hereunder from Tenant may be given
by Tenant’s attorney.

 

29.03.                  In
addition to the foregoing, either Landlord or Tenant may, from time to time,
request in writing that the other party serve a copy of any notice on one other
person or entity designated in such request in addition to the two persons or
entities designated in Section 29.01 hereof, and Landlord shall also have the
right to request in writing that Tenant serve a copy of any notice on the
lessor under the Unit Lease or any Superior Lessor or Superior Mortgagee, such
service in any case to be effected as provided in Section 29.01 or 29.02
hereof. 

 

67

 

ARTICLE 30

Estoppel Certificates

 

30.01.                  Each party agrees, at any time and from time
to time, as requested by the other party with not less than 10 days’ prior
notice, to execute and deliver to the other 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 the dates to which the Fixed Rent and Additional Charges have been
paid,

 

(iii)
certifying as to the name and address of all persons or entities to whom
notices are to be given on behalf of such party,

 

(iv)
stating whether or not, to the best knowledge of the signer, the other party is
in default in performance of any of its obligations under this Lease, and if
so, specifying each such default of which the signer shall have knowledge, and

 

(v)
stating whether or not, to the best knowledge of the signer, any event has
occurred which with the giving of notice or passage of time, or both, would
constitute such a default, and, if so, specifying each such event of which the
signer shall have knowledge,

 

it
being intended that any such statement delivered pursuant hereto shall be
deemed a representation and warranty to be relied upon by the party requesting
the certificate and by others with whom such party may be dealing, regardless
of independent investigation.   Tenant
also shall include in any such statement such other information concerning this
Lease to the best knowledge of the signer as Landlord may reasonably request.

 

ARTICLE 31

Memorandum of Lease

 

31.01.                  Tenant shall not record this Lease, but at
the request of either party, Landlord and Tenant shall execute, acknowledge and
deliver, and Landlord or Tenant may record, a statutory form of memorandum with
respect to this Lease pursuant to the provisions of Section 291-C of the Real
Property Law of the State of New York.

 

68

 

ARTICLE 32

No Representations by Landlord

 

32.01.                  Tenant expressly acknowledges and agrees that
Landlord has not made and is not making, and Tenant, in executing and
delivering this Lease, is not relying upon, any warranties, representations,
promises or statements, except to the extent that the same are expressly set
forth in this Lease or in any other written agreement which may be made between
the parties concurrently with the execution and delivery of this Lease and
shall expressly refer to this Lease. All understandings and agreements relating
to the subject matter of this Lease heretofore had between the parties are
merged in this Lease and any other written agreement(s) made concurrently
herewith, which alone fully and completely express the agreement of the parties
and which are entered into after full investigation, neither party relying upon
any statement or representation not embodied in this Lease or any other written
agreement(s) made concurrently herewith.

 

ARTICLE 33

Hazardous Materials

 

33.01.                  Landlord covenants that upon delivery to
Tenant of any portion of the Premises such portion of the Premises will be free
of any Hazardous Materials that are required by applicable Legal Requirements
to be removed or remediated or that would be required by applicable Legal
Requirements to be removed or remediated if the same were to be disturbed or
otherwise affected by work or other activity in or about the Building.(17) In
the event that after the date hereof there are found in the Premises any
Hazardous Materials that are required by applicable Legal Requirements to be
removed or remediated (including so required by reason of or in connection any
work or other activity performed or desired to be performed by Tenant which
would disturb or otherwise affect the same) then, as Tenant’s sole remedy in
connection therewith, Tenant may remove or otherwise remediate such Hazardous
Materials at Landlord’s expense; provided, however, that at Landlord’s option,
such removal or remediation shall be supervised, at Landlord’s expense, by an
environmental consultant designated by Landlord. This paragraph shall not be
applicable to any Hazardous Materials brought to or placed at the Premises by Tenant
or any of Tenant’s subtenants or licensees or its or their employees, agents,
contractors or invitees.

 

33.02.                  Tenant shall not cause or permit Hazardous
Materials to be used, transported, stored, released, handled, produced or
installed in, on or from, the Premises or the Building, provided that the
foregoing shall not be deemed to prohibit Tenant from utilizing in the
Premises, as an incident to the use permitted pursuant to Article 2 hereof, any
materials in amounts and forms as are generally used by tenants in first-class
office buildings in lower Manhattan using

 

(17)  If and for so long as the
“Landlord” under this Lease is (A)(i) Ground Lessor and (ii) a governmental
entity or a public benefit corporation, or (B) the party who acquires the interest
of the “Landlord” in this Lease from such governmental entity or public benefit
corporation (but not any other party who becomes the “Landlord” under this
Lease), the covenant set forth in this sentence shall not be applicable,
provided, however, that Tenant’s remedies as set forth in the second sentence
of this section shall continue to apply.

 

69

 

premises for the purposes for which Tenant is
permitted to use the Premises pursuant to Article 2 hereof, provided that (i)
the use or storage of such materials in the Building shall not be prohibited by
applicable Legal Requirements or the requirements of any insurance bodies, (ii)
such materials are stored and safeguarded in a manner reasonably satisfactory to
Landlord and in compliance with all applicable Legal Requirements, (iii) no
such materials shall in any event be released or discharged other than as their
use dictates or in such a manner as to contaminate the Building or the
Premises, and (iv) such materials shall not be incorporated into, or used as
part of, the construction or decoration of the Premises in violation of law. In
the event of a breach of the provisions of this Section 33.02, Landlord shall,
in addition to all of its rights and remedies under this Lease and pursuant to
law, require Tenant to remove any such Hazardous Materials from the Premises in
the manner prescribed for such removal by Legal Requirements. The provisions of
this Section 33.02 shall survive the termination of this Lease.

 

33.03.                  The term “Hazardous
Materials” shall, for the purposes hereof, mean any flammable
explosives, radioactive materials, hazardous wastes, hazardous and toxic
substances, or related materials, asbestos or any material containing asbestos,
or any other substance or material, as defined by any federal, state or local
environmental law, ordinance, rule or regulation including, without limitation,
the Comprehensive Environmental Response Compensation and Liability Act of
1980, as amended, the Hazardous Materials Transportation Act, as amended, the
Resource Conservation and Recovery Act, as amended, and in the regulations
adopted and publications promulgated pursuant to each of the foregoing.

 

ARTICLE 34

Miscellaneous Provisions and Definitions

 

34.01.                  No
agreement shall be effective to change, modify, waive, release, discharge,
terminate or effect an abandonment of this Lease, in whole or in part,
including, without limitation, this Section 34.01, unless such agreement is in
writing, refers expressly to this Lease and is signed by the party against whom
enforcement of the change, modification, waiver, release, discharge,
termination or effectuation of the abandonment is sought. If Tenant shall at
any time request Landlord to sublet the Premises for Tenant’s account, Landlord
or its agent is authorized to receive keys for such purposes without releasing
Tenant from any of its obligations under this Lease, and Tenant hereby releases
Landlord of any liability for loss or damage to any of the Tenant’s Property in
connection with such subletting unless caused by or resulting from the
negligence or willful act of Landlord, its agents, servants, contractors, or
employees.

 

34.02.                  Except as otherwise expressly provided in
this Lease, the obligations of this Lease shall bind and benefit the successors
and assigns of the parties hereto with the same effect as if mentioned in each
instance where a party is named or referred to;  provided, however, that
(a) no violation of the provisions of Article 7 shall operate to vest any
rights in any successor or assignee of Tenant and (b) the provisions of this
Article 34 shall not be construed as modifying the conditions of limitation
contained in Article 22.

 

70

 

34.03.                  Intentionally omitted.

 

34.04.                  (a)                                  Except as expressly provided in Section
34.04(b) and Articles 19 and 20 hereof, the obligations of Tenant hereunder
shall be in no wise affected, impaired or excused, nor shall Landlord have any
liability whatsoever to Tenant, nor shall it be deemed a constructive eviction
because (a) Landlord is unable to fulfill, or is delayed in fulfilling, any of
its obligations under this Lease by reason of strike, lock-out or other labor
trouble, governmental preemption of priorities or other controls in connection
with a national or other public emergency or shortages of fuel, supplies or
labor resulting therefrom, or any other cause, whether similar or dissimilar,
beyond Landlord’s reasonable control; or (b) of any failure or defect in the
supply, quantity or character of electricity or water furnished to the
Premises, by reason of any requirement, act or omission of the public utility
or others serving the Building with electric energy, steam, oil, gas or water,
or for any other reason whether similar or dissimilar, beyond Landlord’s
reasonable control (the foregoing circumstances described in this Section 34.04
being “Force Majeure Causes”).  Landlord shall give Tenant prompt notice
of the occurrence of any Force Majeure Cause and shall use diligent efforts to
overcome any such Force Majeure Cause, including, without limitation, the
performance of such work on an overtime or premium-pay basis to the extent
required of a Unit Owner under the Declaration.

 

(b)                                 Notwithstanding anything to the contrary contained
in this Lease, but subject to the provisions of Article 19 and 20 hereof to the
extent applicable, if for a period of two (2) consecutive Business Days
(commencing on the day after the date Tenant delivers the notice required in
(z) below to Landlord) Landlord fails to provide the services or make the
repairs required of Landlord under this Lease to be provided to the Premises or
any portion thereof, and (w) the cause of such failure shall not be Force
Majeure Causes or the act or omission of Tenant, its agents, representatives,
contractors or employees, and (x) as a result of such failure the Premises or
any portion thereof shall be rendered untenantable and (y) as a result of such
failure Tenant shall not use the Premises or such portion thereof for the
conduct of its business except to retrieve records and/or maintain equipment,
and (z) Tenant shall concurrently with its failure to use the Premises give
notice of such fact to Landlord; then, in such event, the Fixed Rent and
Additional Charges under Article 3 payable pursuant to this Lease shall be
abated for the period commencing on the day immediately succeeding the
expiration of such two (2) consecutive Business Day period and ending on the
date that the Premises or such portion thereof shall be rendered tenantable (or
such earlier date, if any, as Tenant shall reoccupy the Premises or such
portion thereof for the conduct of its business).

 

34.05.                  For the purposes of this Lease, the following
terms have the meanings indicated:

 

(a)                                   The term “mortgage”
shall include a mortgage and/or a deed of trust, and the term
“holder of a mortgage” or “mortgagee” or words of similar import shall include
a mortgagee of a mortgage or a beneficiary of a deed of trust.

 

(b)                                 The term “laws
and requirements of any public authorities” and words of a similar
import shall mean laws and ordinances of any or all of the federal, state,
city, town,

 

71

 

county, borough and village governments
including, without limitation, The Americans with Disabilities Act of 1990, as
amended, and rules, regulations, orders and directives of any and all
departments, subdivisions, bureaus, agencies or offices thereof, and of any
other governmental, public or quasi-public authorities having jurisdiction over
the Building and/or the Premises, and the direction of any public officer
pursuant to law, whether now or hereafter in force.

 

(c)                                  The term “requirements
of insurance bodies” and words of similar import shall mean rules,
regulations, orders and other requirements of the New York Board of
Underwriters and/or the New York Fire Insurance Rating Organization and/or any
other similar body performing the same or similar functions and having
jurisdiction or cognizance over the Building and/or the Premises, whether now
or hereafter in force.

 

(d)                                 The term “Tenant”
shall mean the Tenant herein named or any assignee or other successor in
interest (immediate or remote) of the Tenant herein named, which at the time in
question is the owner of the Tenant’s estate and interest granted by this
Lease; but the foregoing provisions of this Section shall not be construed to
permit any assignment of this Lease or to relieve the Tenant herein named or
any assignee or other successor in interest (whether immediate or remote) of
the Tenant herein named from the full and prompt payment, performance and
observance of the covenants, obligations and conditions to be paid, performed
and observed by Tenant under this Lease.

 

(e)                                  The term “Landlord”
shall mean only the owner at the time in question of the Unit or the lessee
under a severance lease covering the Unit, so that in the event of any transfer
of the Unit, (any such transfer being a “Transfer”),
the transferor (a “Transferor”)
shall be and hereby is relieved and freed of, and it shall be deemed, without
further agreement that upon a subsequent Transfer, the transferee (a “Transferee”) has assumed and agreed to
perform, all obligations of Landlord under this Lease.

 

(f)                                    The terms “herein,” “hereof and “hereunder,”
and words of similar import, shall be construed to refer to this Lease as a
whole, and not to any particular article or section, unless expressly so
stated.

 

(g)                                 The term “and/or” when applied to one or more
matters or things shall be construed to apply to any one or more or all thereof
as the circumstances warrant at the time in question.

 

(h)                                 The term “person”
shall mean any natural person or persons, a partnership, a corporation, and any
other form of business or legal association or entity.

 

(i)                                     The terms “Landlord shall have no liability
to Tenant” or “the same shall be without liability to Landlord” or “without
incurring any liability to Tenant therefor”, or words of similar import shall
mean that Tenant is not entitled to terminate this Lease, or to claim actual or
constructive eviction, partial, or total, or to receive any abatement or
diminution of rent, or to be relieved in any manner of any of its other
obligations hereunder, or to be compensated for loss

 

72

 

or injury suffered or to enforce any other
right or kind of liability whatsoever against Landlord under or with respect to
this Lease or with respect to Tenant’s use or occupancy of the Premises.

 

(j)                                   The term “Interest
Rate,” when used in this Lease, shall mean an interest rate equal to
two percent (2%) above the so-called annual “Base
Rate” of interest established and approved by Citibank, N.A., New
York, New York, from time to time, as its interest rate charged for unsecured
loans to its corporate customers, but in no event greater than the highest
lawful rate from time to time in effect.

 

(k)                                  The term “Consumer
Price Index” shall mean the Consumer Price Index for All Urban
Consumers (“CPI-AUC”), New York, New York-Northeastern New Jersey, All Items
(1982-1984=100), issued and published by the Bureau of Labor Statistics of the
United States Department of Labor. In the event that CPI-AUC ceases to use a
1982-84 base rate of 100 as the basis of calculation, or if a substantial
change is made in the terms or number of items contained in CPI-AUC, then the
CPI-AUC shall be adjusted to the figure that would have been arrived at had the
manner of computing the CPI-AUC in effect at the date of this Lease not been
altered. If CPI-AUC is not available, the term “Consumer Price Index” shall
mean (i) a successor or substitute index to CPI-AUC, appropriately adjusted; or
(ii) if such a successor or substitute index is not available or may not
lawfully be used for the purposes herein stated, a reliable governmental or
other non-partisan publication, selected by Landlord and approved by Tenant
(which approval shall not be unreasonably withheld or delayed), evaluating the
information theretofore used in determining CPI-AUC.

 

(1)                                  The term “Legal
Requirements” and words of a similar import shall mean laws and
ordinances of any or all of the federal, state, city, town, county, borough and
village governments and rules, regulations, orders and directives of any and
all departments, subdivisions, bureaus, agencies or offices thereof, and of any
other governmental, public or quasi-public authorities having jurisdiction over
the Building and/or the Premises, and the direction of any public officer
pursuant to law, whether now or hereafter in force.

 

34.06.                    All obligations and liabilities of Landlord
or Tenant to the other which accrued before the expiration or earlier
termination of this Lease and all such obligations and liabilities which by
their nature or under the circumstances can only be, or by the provisions of
this Lease may be performed after such expiration or other termination, shall
survive the expiration or earlier termination of this Lease. Without limiting
the generality of the foregoing, the rights and obligations of the parties with
respect to any indemnity under this Lease, and with respect to Tax Payments,
Operating Payments and any other amounts payable by either party under this
Lease, shall survive the expiration or earlier termination of this Lease.

 

34.07.                    (a)                                If Tenant shall request Landlord’s consent and Landlord shall fail or
refuse to give such consent, Tenant shall not be entitled to any damages or any
other remedy for any withholding by Landlord of its consent; provided, however,
that in those cases in which Landlord has expressly agreed in this Lease not to
unreasonably withhold its consent or where as a matter of law Landlord may not
unreasonably withhold its consent, Tenant shall have the right, as its

 

73

 

sole and exclusive remedy, either (i) to prosecute
an action for specific performance, injunction and/or (if Landlord shall have
acted in bad faith) damages, or (ii) to submit the dispute to arbitration in
The City of New York in accordance with the following provisions of Section
34.07(b).

 

(b)                                 Within ten (10) Business Days next following
the giving of any notice by Tenant stating that it wishes to submit the dispute
to arbitration pursuant to this Section 34.07(b), Landlord and Tenant shall
each give notice to the other setting forth the name and address of an
arbitrator designated by the party giving such notice. If the two arbitrators
shall fail to agree upon the designation of a third arbitrator within five (5)
Business Days after the designation of the second arbitrator then either party
may apply to the American Arbitration Association in New York City for the
designation of such arbitrator and if he is unable or refuses to act within ten
(10) Business Days, then either party may apply to the Supreme Court in New
York County or to any other court having jurisdiction for the designation of
such arbitrator. The three arbitrators shall conduct such hearings as they deem
appropriate, making their determination in writing and giving notice to
Landlord and Tenant of their determination as soon as practicable, and if
possible, within five (5) Business Days after the designation of the third
arbitrator; the concurrence of or, in the event no two of the arbitrators shall
render a concurring determination, then the determination of the third
arbitrator designated, shall be binding upon Landlord and Tenant. Judgment upon
any decision rendered in any arbitration held pursuant to this Section 34.07(b)
shall be final and binding upon Landlord and Tenant, whether or not a judgment
shall be entered in any court. Each party shall pay its own counsel fees and
expenses, if any, in connection with any arbitration under this Section
34.07(b), including the expenses and fees of any arbitrator selected by it in
accordance with the provisions of this Section 34.07(b), and the parties shall
share all other expenses and fees of any such arbitration. The arbitrators
shall be bound by the provisions of this Lease, and shall not add to, subtract
from or otherwise modify such provisions. The sole remedy which may be awarded
by the arbitrators in any proceeding pursuant to this Section 34.07 is an order
compelling Landlord to consent to or approve the matter in dispute, and the
arbitrators may not award damages or grant any monetary award or any other form
of relief.

 

34.08.                    If an excavation shall be made upon land
adjacent to or under the Building, or shall be authorized to be made, Tenant
shall afford to the person causing or authorized to cause such excavation,
license to enter the Premises for the purpose of performing such work as said
person shall deem necessary or desirable to preserve and protect the Building
from injury or damage to support the same by proper foundations, without any
claim for damages or liability against Landlord and without reducing or
otherwise affecting Tenant’s obligations under this Lease.

 

34.09.                   Tenant shall not place a load upon any floor of the Premises which
violates applicable law or the certificate of occupancy of the Building (as now
in effect or as the same may be amended pursuant to Section 2.04(b)) or which
exceeds the floor load per square foot which such floor was designed to carry
or is reinforced (in compliance with the applicable provisions of this Lease)
to carry. All heavy material and/or equipment must be placed by Tenant, at
Tenant’s expense, so as to distribute the weight. Business machines and
mechanical equipment shall be placed and maintained by Tenant, at Tenant’s
expense, in settings sufficient in Landlord’s

 

74

 

reasonable judgment to absorb and prevent
vibration, noise and annoyance.  If the
Premises be or become infested with vermin as a result of the use or any misuse
or neglect of the Premises by Tenant, its agents, employees, visitors or
licensees, Tenant shall at Tenant’s expense cause the same to be exterminated
from time to time to the reasonable satisfaction of Landlord and shall employ
such exterminators and such exterminating company or companies as shall be
reasonably approved by Landlord.

 

34.10.                   Irrespective of the place of execution or
performance, this Lease shall be governed by and construed in accordance with
the laws of the State of New York. If any provisions of this Lease or the
application thereof to any person or circumstance shall, for any reason and to
any extent, be invalid or unenforceable, the remainder of this Lease and the
application of that provision to other persons or circumstances shall not be
affected but rather shall be enforced to the extent permitted by law. The table
of contents, captions, headings and titles in this Lease are solely for
convenience of references and shall not affect its interpretation. this Lease
shall be construed without regard to any presumption or other rule requiring
construction against the party causing this Lease to be drafted. Each covenant,
agreement, obligation or other provision of this Lease on the part of Landlord
or Tenant to be performed, shall be deemed and construed as a separate and
independent covenant of such party, not dependent on any other provision of this
Lease. All terms and words used in this Lease, shall be deemed to include any
other number and any other gender as the context may require.

 

34.11.                   If under the terms of this Lease Tenant is
obligated to pay Landlord a sum in addition to the Fixed Rent, Tax Payments or
Operating Payments payable under this Lease and no payment period therefor is
specified, Tenant shall pay Landlord the amount due within thirty (30) days
after being billed, unless such sum relates to the provision of electricity to
Tenant, in which event Tenant shall pay Landlord the amount due within twenty
(20) days after being billed.

 

34.12.                   Notwithstanding anything to the contrary
contained in this Lease, during the continuance of any default by Tenant in the
payment of any sums due hereunder after the giving of notice and the expiration
of any applicable grace periods hereunder, Tenant shall not be entitled to
exercise any expansion or renewal rights or options, or to receive any funds or
proceeds being held, under or pursuant to this Lease.

 

34.13.                   Each of Landlord and Tenant represents and
warrants that this Lease has been duly authorized, executed and delivered by
such party.

 

34.14.                   Any sums which are owed to or are to be
reimbursed by Landlord to Tenant under any provision of this Lease and not paid
within twenty (20) days after their due date may, at the option of Tenant, be
credited by Tenant against the Fixed Rent or Additional Charges payable under
this Lease with interest on the unpaid amount at the Interest Rate from the original
due date until repaid to or credited by Tenant.

 

75

 

ARTICLE 35

Arbitration

 

35.01.                   Either party may request arbitration of any
matter in dispute which, pursuant to the terms of this Lease, expressly allows
such dispute to be resolved by arbitration. The party desiring such arbitration
shall give notice to the other party (the “Arbitration Notice”), (a) requesting
that the dispute be submitted to arbitration, (b) setting forth with
particularity the nature of the dispute sought to be arbitrated, and (c)
stating that the party sending the Arbitration Notice desires to meet within
ten (10) days with the other party to attempt to agree on a single arbitrator
(the “Arbitrator”). If the parties shall not have agreed on a choice of an
arbitrator within fifteen (15) days after the service of such Arbitration
Notice, then either party may apply to the local office of the AAA, or if the
AAA shall not then exist or shall fail, refuse or be unable to act such that the
Arbitrator is not appointed by the AAA within thirty (30) day after application
therefor, then either party may apply to the presiding judge of the Supreme
Court of New York County (the “Court”) and the other party shall not raise any
question as to the Court’s full power and jurisdiction to entertain the
application and make the appointment. The date on which the Arbitrator is
appointed by agreement of the parties, by the AAA or by appointment by the
Court, is referred to herein as the “Appointment Date”. If any Arbitrator
appointed hereunder shall be unwilling or unable, for reason, to serve, or
continue to serve, a replacement shall be appointed in the same manner as the
original Arbitrator.

 

35.02.                   (a)                                 The arbitration shall be conducted in
accordance with the then prevailing rules of the local office of the AAA,
modified as follows:

 

(i)                                     The Arbitrator shall be disinterested and
impartial, shall not be Affiliated with any party to the arbitration, and shall
have at least ten (10) years’ experience with the matter which is the subject
of the arbitration.

 

(ii)                                  Promptly following the Appointment Date, the
Arbitrator shall hold one or more hearings with respect to the matter which is
the subject of the arbitration. The hearings shall be held in the City of New
York, at such location and time as shall be specified by the Arbitrator. Each
of the parties shall be entitled to present all relevant evidence and to
cross-examine witnesses at the hearings. The Arbitrator shall have the
authority to adjourn any hearing to such later date as the Arbitrator shall
specify, provided that in all events all hearings shall be concluded not later
than forty-five (45) days following the Appointment Date.

 

(iii)                               The Arbitrator shall render his or her
determination in a signed and acknowledged written instrument, original
counterparts of which shall be sent simultaneously to all of the parties to the
arbitration, within ten (10) days after the conclusion of the hearing(s)
required by clause (ii) of this subparagraph.

 

(b)                                 The arbitration decision, determined as
provided in this Section, shall be conclusive and binding on the parties, shall
constitute an “award” by the Arbitrator within the

 

76

 

meaning of the AAA rules and applicable law
and judgment may be entered thereon in any court of competent jurisdiction.

 

(c)                                  Each party shall pay its own fees and
expenses relating to the arbitration (including, without being limited to, the
fees and expenses of its counsel and of experts and witnesses retained or
called by it). Each party shall pay one-half (1/2) of the fees and expenses of
the AAA and of the Arbitrator, provided that the Arbitrator shall have the
authority to award such fees and expenses in favor of the prevailing party if the
Arbitrator determines that the position of the non-prevailing party lacked
substantial basis.

 

35.03.                   Landlord and Tenant agree to sign all
documents and to do all other things necessary to submit any such matter to
arbitration and further agree to, and hereby do waive, any and all rights they
or either of them may at any time have to revoke their agreement hereunder to
submit to arbitration and to abide by the decision rendered thereunder. For
such period, if any, that this agreement to arbitrate is not legally binding or
the arbitrator’s award is not legally enforceable, the provisions requiring
arbitration shall be deemed deleted, and matters to be determined by
arbitration shall be subject to litigation.

 

35.04.                   Any dispute which is required by this Lease
to be resolved by Expedited Arbitration shall be submitted to binding
arbitration under the Expedited Procedures provisions (currently, Rules 56 through 60) of the Arbitration Rules of the Real Estate Industry of
the AAA. In cases where the parties utilize such expedited arbitration: (i) the
parties will have no right to object if the arbitrator so appointed was on the
list submitted by the AAA and was not objected to in accordance with Rule 54
(except that any objection shall be made within four days from the date of
mailing), (ii) the Notice of Hearing shall be given four days in advance of the
hearing, (iii) the first hearing shall be held within seven (7) Business Days
after the appointment of the arbitrator, (iv) if the arbitrator shall find that
a party acted unreasonably in withholding or delaying a consent or approval,
such consent or approval shall be deemed granted (but the arbitrator shall not
have the right to award damages, unless the arbitrator shall find that such
party acted in bad faith), and (v) the losing party in such arbitration shall
pay the arbitration costs charged by the AAA and/or the arbitrator, together
with the reasonable counsel fees and disbursements incurred by the prevailing
party in connection with such arbitration.

 

35.05.                   The arbitrators shall, in rendering any
decision pursuant to this Article 35, answer only the specific question or
questions presented to them. In answering such question or questions (and
rendering their decision), the arbitrators shall be bound by the provisions of
this Lease, and shall not add to, subtract from or otherwise modify such
provisions.

 

35.06.                   Judgment may be had on the decision and award
of an arbitrator rendered pursuant to the provisions of this Article 35 and may
be enforced in accordance with the laws of the State of New York.

 

77

 

35.07.                  The
provisions of this Article 35 shall not apply to any arbitration pursuant to
Section 1.04(b), which shall be governed by the provisions of Article XX,
Section 8(b) of the Declaration.

 

35.08.                    The provisions of this Article 35 shall be
applicable with regard to the Lease whenever (x) there is a dispute between
Landlord and Tenant as to (i) the reasonableness of Landlord’s refusal to
consent to any Alterations within the applicable time periods therefor set
forth in this Lease, where Landlord has agreed that its consent would not be
unreasonably withheld, conditioned or delayed, (ii) the reasonableness of
Landlord’s refusal to consent to any subletting or assignment, where Landlord
has agreed that its consent would be unreasonably withheld, conditioned or
delayed, or (iii) Landlord’s refusal to consent to any other matter, where
Landlord has agreed that its consent would not be unreasonably withheld, conditioned
or delayed, within the time period specified in this Lease for the granting of
such consent, or (y) where otherwise provided in this Lease.

 

ARTICLE 36

Extension of Term Options

 

36.01                       (a)                                Tenant shall have the right to extend the term of this Lease for up to
                                          additional
term(s)(18) of ten (10) years each, each such term (an “Extension Term”) commencing on the day
following the expiration of the initial term of this Lease in the case of the
first Extension Term, or the day following the immediately preceding Extension
Term, in the case of Extension Term after the first Extension Term (the first
day of any such Extension Term being herein referred to as the commencement
date of the applicable Extension Term) and ending on the day preceding the
tenth (10th) anniversary of the commencement date of such Extension Term
provided that Tenant shall give Landlord notice (hereinafter called the “Extension Notice”) of its election to
extend the term of this Lease at least nine (9) months prior to the
commencement date of the applicable Extension Term.

 

(b)          The
fixed annual rent payable by Tenant to Landlord during each Extension Term
shall be determined in accordance with Section 1.04(b) hereof.

 

(c)           Effective as of the Commencement Date of each
Extension Term:

 

(i) the “Base Tax
Amount” shall mean the Taxes, as finally determined, for the Tax
Year in which occurs the Commencement Date of such Extension Term; and

 

(ii)                                 “Base Operating Year” shall mean the calendar year in which occurs
the Commencement Date of such Extension Term.

 

(18)  To be
completed in accordance with Footnote 1.

 

 

78

 

36.02.                  (a)                                  Except as provided in Section 36.01 hereof,
Tenant’s occupancy of the demised premises during any Extension Term shall be
on the same terms and conditions as are in effect immediately prior to the
expiration of the initial term of this Lease or the immediately preceding
Extension Term, as the case may be.

 

(b)  If this Lease is renewed for any Extension
Term, then Landlord or Tenant can request the other party hereto to execute an
instrument in form for recording setting forth the exercise of Tenant’s right
to extend the term of this Lease and the last day of such Extension Term, provided,
however, the failure of Landlord or Tenant to execute such an instrument shall
have no effect whatsoever on Tenant’s rights pursuant to this Article 36.

 

(m)  If Tenant exercises its right to extend the
term of this Lease for any Extension Term pursuant to this Article, the phrases
“the term of this Lease” or “the term hereof” as used in this Lease, shall be
construed to include, when practicable, such Extension Term.

 

 

IN
WITNESS WHEREOF, Landlord and Tenant have duly executed this Lease as of the
day and year first above written.

 

	
   

  	
   

  	
  , Landlord

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THE NEW YORK TIMES
  COMPANY, Tenant

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

79

Exhibit A

 

Land

 

A-1

 

Exhibit B

 

Certificate of Occupancy

 

B-1

 

Exhibit C

 

METHOD OF FLOOR MEASUREMENT FOR OFFICE BUILDINGS

[Real Estate Board of New York — Effective January 1,
1987]

 

Measure the floor to the
outside surface of the building. 
Subtract from this area the following, including the finished enclosing
walls:

 

•                                          Public elevator shafts and elevator machines
and their enclosing walls.

 

•                                          Public stairs and their enclosing walls.

 

•                                          Heating, ventilating, and air-conditioning
facilities (including pipes, ducts and shafts) and their enclosing walls,
unless such equipment, mechanical room space, or shafts serve the floor in
questions.

 

•                                          Fire towers and fire tower courts and their enclosing
walls.

 

•                                          Main telephone equipment rooms and main
electric switchgear rooms, except that telephone equipment, and electric
switchgear rooms serving the floor exclusively shall not be subtracted.

 

C-1

 

Exhibit D

Form of Letter of Credit

 

IRREVOCABLE
STAND-BY LETTER OF CREDIT

 

	
  BENEFICIARY:

  	
   

  	
  APPLICANT:

  

 

EXPIRATION
DATE:

 

AMOUNT:

 

WE HEREBY ISSUE THIS IRREVOCABLE STAND-BY LETTER OF CREDIT IN YOUR
FAVOR WHICH IS AVAILABLE TO YOU AGAINST PRESENTATION OF YOUR DRAFT AT SIGHT
DRAWN ON [BANK] AND BEARING THE CLAUSE “DRAWN UNDER [BANK] CREDIT NUMBER
[         ]” ACCOMPANIED BY:

 

BENEFICIARY’S
CERTIFICATION THAT (i) AN EVENT OF DEFAULT HAS OCCURRED UNDER THE LEASE DATED
               
, 2      BETWEEN BENEFICIARY AS LANDLORD AND APPLICANT AS
TENANT, WHICH DEFAULT HAS CONTINUED BEYOND THE EXPIRATION OF ALL APPLICABLE
NOTICE AND CURE PERIODS OR (ii) TENANT UNDER SUCH LEASE HAS NOT RENEWED OR
REPLACED THIS LETTER OF CREDIT AT LEAST 30 DAYS PRIOR TO ITS STATED EXPIRATION
DATE.

 

IT
IS A CONDITION OF THIS LETTER THAT IT SHALL BE DEEMED AUTOMATICALLY EXTENDED
WITHOUT AN AMENDMENT FOR ONE YEAR FROM THE PRESENT OR ANY FUTURE EXPIRATION
DATE HEREOF UNLESS 30 DAYS PRIOR TO ANY SUCH DATE WE SHALL NOTIFY YOU IN
WRITING THAT WE ELECT NOT TO CONSIDER THIS LETTER OF CREDIT RENEWED FOR ANY
SUCH ADDITIONAL PERIOD. UPON PRESENTATION TO YOU OF SUCH NOTICE, YOU MAY, UNTIL
THE EXPIRATION DATE HEREOF, DRAW THE FULL AMOUNT OF THE CREDIT HEREUNDER,
AGAINST YOUR DRAFT.

 

THIS
LETTER OF CREDIT IS NON-NEGOTIABLE, NON-ASSIGNABLE AND NON-TRANSFERABLE EXCEPT
TO ANY SUCCESSOR TO THE BENEFICIARY AS LANDLORD UNDER LEASE, DATED                
, 2    
BETWEEN BENEFICIARY AS LANDLORD AND APPLICANT AS TENANT.

 

WE
HEREBY AGREE WITH YOU THAT DRAFTS DRAWN UNDER AND IN COMPLIANCE WITH THE TERMS
OF THIS CREDIT WILL BE DULY HONORED ON DUE PRESENTATION TO THE DRAWEES IF
PRESENTED ON OR BEFORE THE EXPIRATION DATE.

 

THIS
CREDIT IS SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS
(1993 REVISION) INTERNATIONAL CHAMBER OF COMMERCE PUBLICATION NO. 500.

 

D-1

 

Exhibit E

Mortgagee SNDA

 

SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT

 

This
Subordination, Non-Disturbance and Attornment Agreement (this “Agreement”) is
dated as of the       day of
                
, 2     , between                       
, a
                      
with an address at                                 
(“Lender”), and                               
, a                         
with an address
at                                      
(“Tenant”).

 

RECITALS

 

A.                                   Tenant is the tenant under a certain lease
(the “Lease”) dated
                  
, 2     with
                                                 
(“Landlord”) of the         floor space
described in the Lease (the “Premises”) located at
                                    
in the City, County and State of New York and more particularly described on
Exhibit A attached hereto and made a part hereof (such building and land,
including the Premises, is hereinafter referred to as the “Property”).

 

B.                                     This Agreement is being entered into in
connection with a mortgage loan (as amended and supplemented from time to time,
the “Loan”) dated
                     
, 2       made by Lender to Landlord, secured by,
among other things: (a) a first mortgage to secure debt on the Property (the
“Mortgage”) recorded with the registry or clerk of the county in which the
Property is located; and (b) a first assignment of leases and rents on the
Property (the “Assignment of Leases and Rents”) recorded with such registry or
clerk. The Mortgage and the Assignment of Leases and Rents are hereinafter
collectively referred to as the “Security Documents”. [RECORDING INFO TO BE ADDED]

 

AGREEMENT

 

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 Security Documents and to all present or future advances
under the obligations secured thereby and all renewals, amendments,
modification, consolidations, replacements and extensions of the secured
obligations and the Security Documents, to the full extent of all amounts
secured by the Security Documents from time to time.  Said subordination is to have the same force and effect as if the
Security Documents and such renewals, modifications, consolidations,
replacements and extension thereof had been

 

E-1

 

executed, acknowledged, delivered and
recorded prior to the Lease, any amendments or modifications thereof and any
notice thereof.

 

2.                                        Lender hereby consents to the Lease and
agrees that, if Lender exercises any of its rights under the Security
Documents, 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 unless such joinder shall be required by law 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 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
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 fee ownership,
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 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
for defaults which continue after Lender succeeds to the interest of Landlord
under the Lease and except for defaults which arise after the date of such
succession; 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 for
defenses or offsets which arise 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 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 Security Documents 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) 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

 

E-2

 

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 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:

 

If
to Tenant:

 

 

with
a copy to:

 

 

with
a copy to:

 

 

If
to Lender:

 

 

with
a copy to:

 

E-3

 

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.

 

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)

 

	
   

  	
   

  	
  , Lender

  

 

E-4

 

	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: 

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  , Tenant

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: 

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  CONSENTED TO:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  , Landlord

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
							

 

E-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 2          , 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 2         , 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

  

 

E-6

 

EXHIBIT
A

 

[Description of Property]

 

E-7

 

Exhibit F

 

SUBORDINATION, NON-DISTURBANCE, RECOGNITION

AND ATTORNMENT AGREEMENT

 

This
Subordination, Non-Disturbance, Recognition and Attornment Agreement (this
“Agreement”) is dated as of the
               day
of        , 2      ,
between
                                
, a                                     
, with an address at
                                               
(“Ground Lessor”), and                                                
, a
                            
with an address at
                         
(“Tenant”).

 

RECITALS

 

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 in Exhibit A attached hereto and made
a part hereof (the “Property”), and (ii) the lessor under that certain Ground
Lease dated as of December         ,
2001 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                                                                                   [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         
floor space (the “Premises”) of the building located on the Property as
described in the Lease.

 

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

 

AGREEMENT

 

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 and such renewals,
modifications, consolidations, replacements and extensions thereof had been
executed, acknowledged, delivered and recorded prior to the Lease and /or any
amendments, modifications, renewals or extensions thereof.

 

F-1

 

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, unless such joinder shall be required by law
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 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
for defaults which continue after Ground Lessor succeeds to the interest of
Landlord under the Lease and except for defaults which arise after the date of
such succession; 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 for
defenses or offsets which arise 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)

 

F-2

 

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.

 

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:

 

 

with
a copy to:

 

 

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

 

F-3

 

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.

 

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)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  , Ground Lessor

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  , Tenant

  

 

F-4

 

	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  CONSENTED TO:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  , Landlord

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
							

 

F-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 2       , 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 2       , 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

  

 

F-6

 

EXHIBIT
A

[Description
of Property]

 

F-7

 

 

Exhibit G

Exclusive Use Rights Of Certain Tenants

 

[To Be Completed, if applicable, upon Lease execution]

 

G-1

 

Exhibit H

HVAC Specifications

 

HVAC systems will maintain
the following conditions:

 

Outdoor
Conditions

 

	
  Summer

  	
   

  	
  Winter

  
	
  91°F db/76°F wb

  	
   

  	
  5°F db with a 15 mph wind

  

 

Indoor
Conditions 

 

	
  Occupied Office Areas:

  	
  Summer

  	
   

  	
  Winter

  
	
   

  	
  75°F db/50% + 5% RH

  	
   

  	
  72°F db/with humidity
  control

  

 

Ventilation

 

Outside air ventilation
rates for occupied areas will comply with ASHRAE (American Society for Heating
Refrigeration and Air Conditioning Energy) 62/89 and will be capable of maintaining
20 cfm per occupant. The outside air to each floor will be varied using CO2 sensors.

 

H-1

 

Exhibit I

Building Standards

 

I-1

 

Exhibit J

Cleaning Specifications

 

I                                          NIGHTLY SERVICES

 

A.                                  Public Areas

 

1.                                     Maintain public area walls in clean
condition. Public areas shall also include elevator lobbies on multiple tenant
floors;

 

2.                                     Vacuum clean all carpets in public areas. If
flooring, sweep floors with treated mop to maintain in clean condition
throughout the public areas;

 

3.                                     Inspect and maintain cleanliness of fire
hoses, extinguishers and other similar equipment; and

 

4.                                     Remove finger marks from all doors and
elevator cabs.

 

B.                                  Tenant Office Areas

 

1.                                     Sweep all uncarpeted floors, using chemical
treated dust mop to prevent dust dispersion;

 

2.                                     Carpet sweep carpeted areas and rugs four (4)
nights each week and vacuum once each week, moving light furniture other than
desks, file cabinets, etc.;

 

3.                                     Empty and clean all ashtrays and screen all
sand urns;

 

4.                                     Hand dust and wipe clean with a treated
cloth, mitt or duster, all furniture, file cabinets, desk lamps, window sills
and convector covers;

 

5.                                     Move and dust under all desk equipment and
phones, replacing and dusting said equipment with approved anti-bacterial
cloth;

 

6.                                     Scour and wash clean all water coolers and
fountains;

 

7.                                     Clean all glass furniture tops;

 

8.                                      Empty and clean all waste basket and disposal
receptacles, and remove waste to designated areas of building. Plastic bag
liners replaced as required at no additional cost to Tenant.

 

J-1

 

9.                                     Dust all chair rails, trim etc., in normal
reach on a weekly basis. 

 

C.                                     Lavatories

 

1.                                       Scour, wash and disinfect all basins, bowls
and urinals with approved germicidal detergent solution;

 

2.                                       Wash and disinfect both sides of all toilet
seats with approved germicidal detergent solution;

 

3.                                       Wash and polish with a non-acid polish all
mirrors, pewter shelves, bridgework and enamel surfaces etc., including
flushmeters, piping and toilet seat hinges;

 

4.                                       Hand dust and wash all partitions, dispensers
and receptacles;

 

5.                                       Sweep and wash all lavatory flooring with an
approved disinfectant;

 

6.                                       Empty and clean all paper towels, sanitary
disposal receptacles, transporting waste to the designated location;

 

7.                                       Fill all toilet holders, paper towel
dispensers, sanitary napkin, soap dispensers and sanitary toilet seat covers;
and

 

8.                                       Remove graffiti.

 

II.                                     WEEKLY SERVICES

 

1.                                       Hand dust all louvers and ventilating louvers
in Premises; and

 

2.                                       Remove all finger marks from all painted
surfaces near light switches, entrance doors, and the like in Premises.

 

Tenant
Office Area:

 

1.                                       Dust Venetian blinds; and

 

2.                                       Dust surfaces not reached in nightly
cleaning.

 

J-2

 

MONTHLY OR QUARTERLY CLEANING (as noted below)

 

A.                                 Public Areas

 

1.                                       Wash and wax all floors in public corridors.
Public corridors shall also include elevator lobbies on multiple-tenant floor
(monthly)

 

B.                                    Tenant Office Area

 

1.                                      Remove all smudges, fingermarks, and other
marks from painted surfaces on doors, and areas around electrical light walls
switches and doorjambs (monthly);

 

2.                                      Hand dust all pictures, frames, charts, graphs,
and similar wall hangings not reached in nightly or weekly cleaning
(quarterly); and

 

3.                                      Dust air-conditioning louvers, grills, etc.,
not reached in nightly cleaning (quarterly).

 

C.                                    Lavatories

 

1.                                      Machine scrub flooring (monthly);

 

2.                                      Hand dust, clean and wash all tile walls and
apply disinfecting solutions (monthly);

 

3.                                      High dust lights, walls, grilles, etc.;
(annually) and

 

4.                                       Dust all lighting fixtures (quarterly). 

 

IV                                   PEST CONTROL

 

1.                                     Pest control treatment in all public areas,
lavatories on multi-tenant floors, and service sink rooms will be done not less
than once a month or more frequently, if reasonably necessary in order to
maintain a sanitary condition. All service will be rendered by operators
licensed by Board of Health of the City of New York.

 

V.                                  WINDOW CLEANING

 

1.                                     Wash all exterior windows on the outside and
inside from the main floor to roof three (3) times per year. Landlord shall
submit a report or notice from its window cleaning contractor confirming that
such window washing has been completed.

General

 

•                                          Dust closets, shelving and coat racks
(quarterly),

 

J-3

•                                          Dust exterior of lighting fixtures
(annually).

 

•                                          Police all public stairwells throughout the
entire building and keep in clean condition, mop as necessary.

 

Lavatories/Nightly

 

•                                          Report all mechanical deficiencies, i.e.,
dripping faucets, etc., to building manager. 

 

Building Service Areas

 

•                                          Keep janitor closets and adjacent areas in
the Premises in a clean and orderly condition.

 

Duties of Day Matron In Base Building and Core
Lavatories

 

•                                          During Business Hours, police all core
lavatories once each day.

 

•                                          Fill toilet tissue dispensers with toilet
issue.

 

•                                          Fill paper towel dispenser with paper towels.

 

•                                          Fill sanitary napkins dispensers with
sanitary napkins.

 

•                                          Fill sanitary toilet seat cover dispensers
with paper covers.

 

Timing and Frequency of Services

 

On
those days in which cleaning service is provided, nightly cleaning services in
the Premises will be performed only between the hours of 6pm and 6am (except
with respect to services required to be performed at other times).

 

Supervision

 

A
competent supervisor will be assigned to the Premises during days, nights and
weekends as required. The night supervisor shall be required to verify that all
required work has been completed, all lights within the Premises are turned off
and all doors are locked.

 

J-4

 

Exhibit K

 

Form of Guaranty

 

THIS GUARANTY (“Guaranty”) is made and entered
into as of the            day
of
                      ,
2    , by THE NEW YORK TIMES COMPANY, a New York
corporation, whose address is
                                                  ,
Attention:
                                          
(“Guarantor”) “), in favor of [FC UNIT OWNER], a
                                              
, whose address is One MetroTech Center North, Brooklyn, New York 11201,
Attention: General Counsel (“Landlord”).

 

W  I  T  N  E  S  S
E  T  H:

WHEREAS:

 

A.                                   Concurrently with execution and delivery of
this Guaranty, Landlord and
                         
(“Tenant”) have entered into a Lease (the “Lease”) pursuant to
which Landlord has agreed to lease to Tenant, and Tenant has agreed to lease
from Landlord, the “Premises”, as such term is defined in the Lease.

 

B.                                     Guarantor has an interest in Tenant and has
agreed to guaranty the “Guaranteed Obligations” as such term is
hereinafter defined.

 

NOW,
THEREFORE, in consideration of the foregoing premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by Guarantor, Guarantor hereby agrees as follows (all capitalized
terms used herein without definition having the meanings ascribed to them in
the Lease):

 

1.                                         (a)                                Guarantor, for itself, its successors and assigns, hereby primarily,
unconditionally, absolutely and irrevocably guarantees the full and prompt
payment of an amount equal to one years’ Fixed Rent and any Enforcement Costs
(as hereinafter defined in Paragraph 19 hereof).

 

(b)                                 Guarantor represents and warrants that, as of
the date of this Guaranty, Guarantor has a credit rating
of   “A-minus”(1) or better as determined by the “Rating Agency”
(as such term is defined in the Declaration).

 

2.                                         Guarantor guarantees the Guaranteed Obligations
regardless of any law, statute, rule, regulation, decree or order now or
hereafter in effect in any jurisdiction affecting or purporting to affect in
any manner any of the terms or the rights or remedies of Landlord with

 

(1)                                          Substitute equivalent rating to “A-minus” if
Rating Agency is no longer Standard & Poors.

 

K-1

 

respect to the Guaranteed Obligations. The
obligations and liabilities of Guarantor hereunder shall be direct and primary
and not indirect or secondary, and shall be absolute, unconditional and
irrevocable. Guarantor’s obligations hereunder shall not be deemed exonerated,
discharged or satisfied, except as provided in Section 16 hereof

 

3.                                        If Guarantor fails to promptly pay the
Guaranteed Obligations in accordance with this Guaranty, Landlord shall, from
time-to-time, and without first attempting to require performance by Tenant,
have the right to bring any action to collect the Guaranteed Obligations.
Guarantor shall indemnify and hold Landlord free and harmless from and against
any and all loss, damage, cost, expense, injury, or liability Landlord may
suffer or incur in connection with the exercise of its rights under this
Guaranty or the payment of the Guaranteed Obligations.

 

4.                                        All of the remedies set forth herein and/or provided
for in the Lease or at law or equity shall be equally available to Landlord and
the choice of one such alternative over another shall not be subject to
question or challenge by Guarantor or any other person, nor shall any such
choice be asserted as a defense, setoff, or failure to mitigate damages in any
action, proceeding, or counteraction by Landlord to recover or seeking any
other remedy under this Guaranty, nor shall such choice preclude Landlord from
subsequently electing to exercise a different remedy. The parties have agreed
to the alternative remedies provided herein in part because they recognize that
the choice of remedies in the event of a default hereunder will necessarily be
and should properly be a matter of good-faith business judgment, which the
passage of time and events may or may not prove to have been the best choice to
maximize recovery by Landlord at the lowest cost to Tenant and/or Guarantor. It
is the intention of the parties that such good-faith choice by Landlord be
given conclusive effect regardless of such subsequent developments.

 

5.                                        Guarantor hereby waives (i) notice of
acceptance of this Guaranty by Landlord and any and all notices and demands of
every kind which may be required to be given by any statute, rule or law, (ii)
any defense, right of set-off or other claim which any Guarantor may have
against Landlord, except for claims of actual payment or actual performance
(iii) presentment for payment, demand for payment, notice of nonpayment or
dishonor, protest and notice of protest, diligence in collection and any and
all formalities which otherwise might be legally required to charge Guarantor
with liability, and (iv) any failure by Landlord to inform Guarantor of any
facts Landlord may now or hereafter know about Tenant or the terms of the
Lease, it being understood and agreed that Landlord has no duty so to inform
and that Guarantor is fully responsible for being and remaining informed by
Tenant of all such circumstances bearing on the risk of nonperformance of the
Tenant’s obligation under the Lease. Guarantor agrees that any claims which
Guarantor may have against Tenant must be brought in a separate action, which
action shall not be consolidated with any action brought by Landlord, unless
such consolidation is required by law. Landlord shall have no obligation to
disclose or discuss with Guarantor its assessment of the financial condition of
Tenant. Guarantor acknowledges that no representations of any kind whatsoever
have been made to it by Landlord. No modification or waiver of any of the
provisions of this Guaranty shall be binding upon Landlord except as expressly
set forth in a writing duly signed and delivered on behalf of Landlord.

 

K-2

 

6.                                       Guarantor further agrees that Guarantor’s
liability as guarantor shall in nowise be impaired or affected by any
extensions which may be made from time to time, with or without the knowledge
or consent of Guarantor, of the time for performance by Tenant under the Lease
or by any forbearance or delay in enforcing same, or by way of waiver by
Landlord under the Lease. Landlord’s failure or election not to pursue any
other remedies it may have against Tenant, Guarantor, or by virtue of any
change or modification in the Lease or by the acceptance by Landlord of any
additional security or any increase, substitution or change therein, or by the
release by Landlord of any security or any withdrawal thereof or decrease
therein, or by the application of payments received from any source to the
payment of any obligation other than the Guaranteed Obligations, even though
Landlord might lawfully have elected to apply such payments to any part or all
of the Guaranteed Obligations, it being the intent hereof that Guarantor shall
remain liable as principal for payment of the Guaranteed Obligations until the
Guaranteed Obligations have been paid in full and notwithstanding any act or
thing which might otherwise operate as legal or equitable discharge of a
surety. Guarantor further understands and agrees that Landlord may at any time
enter into agreements with Tenant to amend and modify the Lease and may waive
or release any provision or provisions of the Lease, and, with reference to
such instruments, may make and enter into any such amendments or agreements as
the parties thereto may deem proper and desirable, and may apply any monies
received by Landlord, regardless of the purpose for which the same was given to
Landlord to cure any default or to apply on account of the Guaranteed
Obligations, in such order and priority as Landlord, in its sole discretion,
may require without in any manner impairing or affecting this Guaranty or any
of Landlord’s rights hereunder or Guarantor’s obligations hereunder.

 

7.                                        Guarantor hereby acknowledges having
received, reviewed and understood a true, correct and complete copy of the
Lease. Guarantor acknowledges that this Guaranty is in effect and binding
without reference to whether this Guaranty is signed by any other person or
entity, that possession of this Guaranty by Landlord shall be conclusive
evidence of due delivery hereof by Guarantor and acceptance hereof by Landlord,
and that this Guaranty shall continue in full force and effect as to the
Guaranteed Obligations.

 

8.                                        Guarantor hereby consents and agrees that,
without any further notice to, or consent or agreement of, Guarantor (a)
Landlord make take, hold, exchange, enforce, waive, surrender and/or release
other guarantees, collateral or security which further secure(s) payment and/or
performance of this Guaranty or the Lease, and (b) that any of the obligations,
terms, covenants and conditions contained in the Lease (including, but not
limited to, Tenant’s obligations thereunder) may be renewed, altered, extended,
changed, modified, supplemented or released at Landlord’s written direction, or
with Landlord’s written consent, without in any manner affecting this Guaranty
or releasing Guarantor herefrom, and without the further consent of or notice
to Guarantor, and Guarantor shall continue to be liable hereunder to pay the
Guaranteed Obligations pursuant hereto notwithstanding any such renewal,
alteration, extension, change, modification, supplement or release, or the
taking, holding, exchanging, enforcing, waiving, surrender and/or release of
such other guarantees, collateral or security. Landlord may perfect or fail to
perfect, or to continue the perfection of, any lien or security interest
without

 

K-3

 

notice to, consideration to or the consent of
Guarantor, and without in any way releasing, diminishing or affecting the
absolute nature of Guarantor’s obligations and liabilities hereunder.

 

9.                                          Guarantor hereby waives any and all legal
requirements that Landlord, or its successors or assigns, must institute any
action or proceeding at law or in equity, or obtain any judgment, or exhaust
their rights, remedies and/or recourses against Tenant or any other person or
entity, or with respect to any security for the obligations hereby guaranteed,
as a condition precedent to making any demand on, bringing an action against,
or obtaining or enforcing any judgment against, Guarantor upon this Guaranty,
and/or that it join Tenant or any other person or entity as a party to any such
action. All remedies afforded to Landlord, and its successors or assigns, by
reason of this Guaranty, are separate and cumulative remedies, and it is agreed
that no one of such remedies, whether or not exercised by Landlord, or its
successors or assigns, shall be deemed in exclusion of any of the other
remedies available to Landlord or its successors or assigns, at law, in equity,
by statute, under contract, hereunder or otherwise, and shall in no way limit
or prejudice any such other remedies which Landlord, or its successors or
assigns, may have. Mere delay or failure to act shall not preclude the exercise
or enforcement of any rights and remedies available to Landlord. Guarantor
further waives any requirement that Landlord demand or seek payment or
performance by Tenant or by any other person or entity of the amounts owing or
the covenants to be performed under the Lease, whether hereby guaranteed or
not, as a condition precedent to bringing any action against Guarantor upon
this Guaranty, it being agreed that a failure to comply with or perform the
obligations, terms, covenants and conditions herein guaranteed shall, without
further act, make Guarantor liable as herein set forth.

 

10.                                    This Guaranty is an absolute, unconditional,
present and continuing guaranty of performance of the Guaranteed Obligations.
Guarantor hereby expressly waives all defenses of Tenant pertaining to the
Guaranteed Obligations, except for the defense of discharge by payment in full,
and except for such defenses as would constitute a defense to Tenant’s
obligation under the Lease. Guarantor shall not be released (a) by any act,
omission or thing which might, but for this provision of this Guaranty, be
deemed a legal or equitable discharge of a surety or guarantor, (b) by any
defense based upon any statute or rule of law which provides that the
obligations of a surety or guarantor must be neither larger in amount nor in other
respects more burdensome than those of a principal, or (c) by reason of any
waiver, extension, renewal, modification, forbearance or delay by Landlord, or
its successors or assigns, or its failure to proceed promptly or otherwise, and
Guarantor hereby expressly waives and surrenders any defense to liability
hereunder based upon the foregoing acts, omissions, things, statutes, rules,
waivers, extensions, modifications, forbearances, delays, obligations,
agreements, or any of them, except the defense of payment in full. Guarantor
also waives any defense arising by virtue of any disability, insolvency,
bankruptcy, defect in formation or continuation, lack of authority or power,
death, insanity, incompetence, liquidation or dissolution of, or any cessation
or limitation of liability from any cause (other than full payment) of, Tenant,
any member or agent thereof, or any other surety, comaker, endorser or
guarantor. No change in the ownership of Tenant or in Tenant’s members shall
affect or change the terms of this Guaranty or in any way change or reduce the
liability of Guarantor hereunder. This Guaranty shall continue to be effective
or be reinstated (as the case may be) if at any time payment of all or any part
of any sum payable pursuant to the Lease or

 

K-4

 

hereunder is rescinded or otherwise required
to be returned upon the insolvency, bankruptcy, dissolution, liquidation, or
reorganization of Tenant, or upon or as a result of the appointment of a
receiver, intervener, custodian or conservator of or trustee or similar officer
for, or any substantial part of its property, or otherwise, all as though such
payment had not been made, regardless of whether the recipient thereof
contested the order requiring the return of such payment.

 

11.                                   Guarantor hereby expressly agrees that the
liabilities and obligations of Guarantor under this Guaranty shall not in any
way be impaired or otherwise affected by the institution by or against Tenant
or any other person or entity of any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings, or any other similar proceedings for
relief under any bankruptcy law or similar law for the relief of debtors and
that any discharge of any of the obligations and/or liabilities hereby
guaranteed pursuant to any such bankruptcy or similar law or other law shall
not diminish, discharge or otherwise affect in any way the obligations of
Guarantor under this Guaranty, and that upon the institution of any of the
above actions, such obligations shall be enforceable against Guarantor.

 

12.                                   In the event that Guarantor shall advance or
become obligated to pay any sums or incurs any costs or expenses hereunder, or
in the event that for any reason Tenant is now or shall hereafter become
indebted or obligated to Guarantor, the amount of such sum, costs, expenses and
such indebtedness or obligation shall at all times be subordinated as to lien,
time of payment and in all other respects to the amounts owing to Landlord
hereunder. Notwithstanding any payment or payments made, or costs or expenses
incurred, by Guarantor hereunder, Guarantor shall not be entitled to be
subrogated to any of the rights of Landlord against Tenant or any other
guarantor or any collateral security or guaranty held by Landlord for the
payment of the guaranteed obligation, nor shall Guarantor seek or be entitled
to seek any contribution or reimbursement from Tenant or any other guarantor in
respect of payments made, or costs or expenses incurred, by Guarantor hereunder
unless and until the Guaranteed Obligations and any Enforcement Costs shall
have been paid in full. Except as otherwise set forth herein, Guarantor shall
have no right to participate in any way in the right, title or interest of
Landlord in the Premises, or to receive payments from Tenant upon any
indebtedness or obligation, notwithstanding any payments made, or costs or
expenses incurred, by Guarantor hereunder, all rights of reimbursement,
indemnification, subrogation and participation being hereby expressly waived
and released with respect to any such payments, costs and expenses. Guarantor
agrees that, following any default or event of default under the Lease, and
until the Guaranteed Obligations shall have been paid in full, Guarantor will
not accept any payment or satisfaction of any kind of any indebtedness or
obligation of Tenant to Guarantor. Further, as long as Guarantor remains liable
hereunder, Guarantor agrees that, if, following any default or event of default
under the Lease, Guarantor should receive any payment, satisfaction or security
for any indebtedness or obligation of Tenant to Guarantor, the same shall be
delivered to Landlord in the form received, endorsed or assigned as may be
appropriate, for application on account of or as security for the Guaranteed
Obligations and, until so delivered, shall be held in trust for Landlord as
security for said Guaranteed Obligations. In addition, at any time, in the
event of any receivership, insolvency, bankruptcy, assignment for the benefit
of creditors, reorganization or arrangement with creditors (whether or not
pursuant to bankruptcy laws), sale of all or substantially all of the assets,
dissolution,

 

K-5

 

liquidation or any other marshaling of the
assets and liabilities of Tenant, Landlord shall be entitled to performance in
full of the obligations hereby guaranteed prior to the payment of all or any
part of any indebtedness of Tenant to Guarantor, and Guarantor will, at the
request of Landlord, file any claim, proof of claim or other instrument of
similar character necessary to enforce the obligations of Tenant in respect of
such indebtedness and hereby assigns to Landlord, and will hold in trust for
Landlord, any and all monies, dividends or other assets received in any such
proceeding on account of such obligations, unless and until the Guaranteed
Obligations shall be paid in full. In the event Guarantor fails to pay the
Guaranteed Obligations in accordance with this Guaranty, it shall pay and
deliver said monies, dividends or other assets to Landlord.

 

13.                             Guarantor hereby warrants and represents unto
Landlord that 

 

(a)                                  there are no actions, suits or proceedings
pending or, to the knowledge of Guarantor, threatened against or affecting
Guarantor, which will have a material adverse impact upon Guarantor’s ability
to perform its obligations hereunder, or involving the validity or
enforceability of this Guaranty, at law or in equity; and Guarantor is not in
default under any order, writ, injunction, decree or demand of any court or any
administrative body having jurisdiction over Guarantor;

 

(b)                                    any and all balance sheets, net worth
statements, income and expense statements, cash flow statements and other
financial statements of, and other financial statements and data relating to,
Guarantor previously or hereafter delivered to Landlord fairly and accurately
present, or will fairly and accurately present, the financial condition of
Guarantor as of the dates thereof, since the dates of those most recently
delivered, there has been no material adverse change in the financial condition
of Guarantor; Guarantor has disclosed all events, conditions, and facts known
to Guarantor which are more likely than not to have a material adverse effect
on the financial condition of Guarantor; and neither this Guaranty nor any
document, financial statement, financial or credit information, certificate or
statement relating to Guarantor and referred to herein, or furnished to
Landlord by Guarantor contains, or will contain, any untrue statement of a
material fact or omits, or will omit, a material fact;

 

(c)                                     Guarantor is a corporation duly organized,
validly existing and in good standing under the laws of the State of New York,
and has all power, authority, permits, consents, authorizations and licenses
necessary to carry on its business, and to execute, deliver and perform this
Guaranty and any other documents or instruments in connection therewith which
it is required to execute; all resolutions of the board of directors of
Guarantor necessary to authorize the execution, delivery and performance of
this Guaranty and such other documents or instruments have been duly adopted
and are in full force and effect; and this Guaranty and such other documents or
instruments have been duly authorized, executed and delivered by and on behalf
of Guarantor so as to constitute this Guaranty and such other documents or
instruments the valid and binding obligation of Guarantor, enforceable in
accordance with their terms; and

 

(d)                                     The execution, delivery, and performance by
Guarantor of this Guaranty does not and will not contravene or conflict with
(i) any law, order, rule, regulation, writ,

 

K-6

 

injunction or decree now in effect of any
government, governmental instrumentality court having jurisdiction over
Guarantor, or (ii) any contractual restriction binding on or affecting
Guarantor or Guarantor’s property or assets which may adversely affect
Guarantor’s ability to fulfill its obligations under this Guaranty.

 

14.                                  The validity, construction and enforceability
of this Guaranty shall be governed by the internal laws of the State of New
York, without giving effect to conflict of laws principles thereof. Whenever
possible, each provision of this Guaranty and any other statement, instrument
or transaction contemplated hereby or relating hereto shall be interpreted in
such manner as to be effective and valid under such applicable law, but, if any
provision of this Guaranty or any other statement, instrument or transaction
contemplated hereby or relating hereto or any right or remedy hereby guaranteed
or provided shall be held to be unenforceable, prohibited or invalid under
applicable law as to any person, party or entity or under any circumstances,
for any reason, such provision, right or remedy shall be ineffective only to
the extent of such unenforceability, prohibition or invalidity, and only with
respect to such person, party, entity or circumstances, without invalidating or
limiting or preventing the enforcement of the remainder of such provision,
right or remedy, or the remaining provisions of this Guaranty, or any other right,
remedy, statement, instrument or transaction contemplated hereby or relating
hereto, as to any other person, party or entity or any other circumstances.

 

15.                                  Notwithstanding any other provision or
provisions herein contained, no provision of this Guaranty shall require or
permit the collection from Guarantor of interest in excess of the maximum rate
or amount, if any, which Guarantor may be required or permitted to pay by any
applicable law.

 

16.                                  This Guaranty shall remain in full force and
effect until payment of the Guaranteed Obligations in full, and thereafter,
this Guaranty shall be discharged, null, void and of no further force and
effect. Upon request by Guarantor, Landlord will deliver to Guarantor written
confirmation of the discharge of the obligations and liabilities of Guarantor
hereunder, and Landlord will return to Guarantor the original counterpart of
this Guaranty. This instrument shall inure to the benefit of Landlord and its
successors, assigns, and shall bind Guarantor and Guarantor’s successors and
assigns. The obligations of Guarantor under this Guaranty shall be enforceable
in all events against Guarantor, its successors and assigns, and each of them.

 

17.                                  This Guaranty may be waived, modified,
amended, terminated or discharged only explicitly in a writing signed by
Landlord and Guarantor. A waiver so signed shall be effective only in the
specific instance and for the specific purpose given.

 

18.                                  Any notice, demand or request by Landlord to
Guarantor or from Guarantor to Landlord shall be in writing and shall be deemed
to have been duly given or made if either delivered personally or if mailed by
certified or registered mail addressed to the address set forth below(or at the
correct address of any assignee of Landlord), except that mailed written
notices shall not be deemed given or served until three (3) days after the date
of mailing thereof

 

K-7

 

(a)                                  If to Guarantor:

 

The
New York Times Company

[                                                   

                                                  ] 

Attention:

 

with
a copy to:

 

Swidler
Berlin Shereff Friedman, LLP

405
Lexington Avenue

New
York, New York 10174

Attention:
Martin D. Polevoy, Esq.

 

(b)                                 If to Landlord:

 

[                                                 ]

One
MetroTech Center North 

Brooklyn,
New York 11201 

Attention:
General Counsel

 

with
a copy to:

 

Kelley
Drye & Warren LLP 

101
Park Avenue 

NewYork,
NewYork 10178 

Attention:
James J. Kirk, Esq.

 

19.                                   If. (i) this Guaranty is placed in the hands
of an attorney for collection or is collected through any legal proceeding;
(ii) an attorney is retained to represent Landlord in any bankruptcy,
reorganization, receivership, or other proceedings affecting creditors’ rights
and involving a claim under this Guaranty; (iii) an attorney is retained to
provide advice or other representation with respect to this Guaranty; or (iv)
an attorney is retained to represent Landlord in any proceedings whatsoever in
connection with this Guaranty, then each Guarantor shall pay to Landlord upon
demand all attorney’s fees, costs and expenses, including, without limitation,
court costs, filing fees, recording costs, expenses of foreclosure, title
insurance premiums, survey costs, minutes of foreclosure, and all other costs
and expenses incurred in connection therewith (all of which are referred to
herein as “Enforcement  Costs”), in addition to all other amounts
due hereunder, regardless of whether all or a portion of such Enforcement Costs
are incurred in a single proceeding brought to enforce this Guaranty.

 

20.                                   Guarantor hereby irrevocably submits to
personal jurisdiction in the state of New York, City and County of New York for
the enforcement of this Guaranty and waives any and all personal rights to
object to such jurisdiction for the purposes of litigation to enforce this

 

K-8

 

Guaranty. Guarantor hereby consents to the
jurisdiction of either any court in such city, county and state or (in a case
involving diversity of citizenship) the United States District Court located
there, in any action, suit, or proceeding which Landlord may at any time wish
to file in connection with this guaranty or any related matter. Guarantor
hereby agrees that an action, suit, or proceeding to enforce this Guaranty may
be brought in any state or federal court therein located and hereby waives any
objection which such guarantor may have to the laying of the venue of any such
action, suit, or proceeding in any such court; provided, however, that the
provisions of this paragraph shall not be deemed to preclude Landlord from
filing any such action, suit, or proceeding in any other appropriate forum.

 

21.                                  This Guaranty may be executed in any number
of duplicate originals and each such duplicate original shall be deemed to
constitute but one and the same instrument. Any signature page of this Guaranty
may be detached from any duplicate original of this Guaranty without impairing
the legal effect of any signatures thereon and may be attached to another
duplicate original of this Guaranty identical in form hereto but having
attached to it one or more additional signature pages.

 

22.                                  Guarantor and Landlord hereby waive any right
to a trial by jury in any action or proceeding to enforce or defend any right
under this Guaranty or relating thereto or arising from the relationship which
is the subject of this Guaranty and agree that any such action or proceeding
shall be tried before a court and not before a jury.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THE NEW YORK TIMES COMPANY

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
									

 

K-9

 

 

Exhibit L

 

Form of Confidentiality Agreement

CONFIDENTIALITY AGREEMENT

 

THIS
CONFIDENTIALITY AGREEMENT (this “Agreement”) is made and entered into as of the
         day of
                
, 2      , by
                                
(the “Landlord”) and                                                                   
(“Tenant”).

 

RECITALS:

 

1.                                       Landlord and Tenant are parties to a lease
agreement dated as of
                              ,
2      (the “Lease”); and

 

L-1

 

2.                                       Pursuant to Section 3.03(d) of the Lease,
Tenant’s Representative has the right to examine Landlord’s books and records
relevant to any Landlord’s Statement delivered to Tenant (hereinafter
collectively called the “Confidential Information”), and

 

3.                                        Tenant is exercising its rights to examine
the Confidential Information in connection with its review of the Landlord’s
Statement given to Tenant on
                          ,
2        .

 

NOW,
THEREFORE, in consideration of the mutual premises herein contained and other
good and valuable consideration, receipt of which is hereby acknowledged, it is
hereby agreed as follows:

 

(1)                                                                                                                                 Definitions. Capitalized terms used in this Agreement and not otherwise defined
shall have the meanings set forth in the Lease.

 

(2)                                                                                                                                 Obligations of Tenant. Tenant acknowledges and agrees that the Confidential Information is
proprietary to Landlord. In consideration of providing Tenant with access to
the Confidential Information, Tenant agrees to treat the Confidential
Information in confidence by complying (and causing compliance therewith by
Tenant’s attorneys, employees, agents and other representatives) with the
following:

 

(a)                                  To use the Confidential Information for the
sole purpose of its examination of Landlord’s Statement as provided in Section
3.03(d) of the Lease;

 

(b)                                 Not to disclose the Confidential Information
to persons who are not in the employ of Tenant, other than its accountants,
attorneys and other representatives as necessary to accomplish the purpose
described in subsection (a) above; and

 

(c)                                  To limit dissemination of the Confidential
Information to only those employees who have a need to know to perform the
tasks set forth in subsection (a) above.

 

(3)                                                                                                                                   Exception to Restrictions. The obligations of Tenant provided for in
Paragraph 2 above shall not apply to any Confidential Information:

 

(a)                                  which was known to the public at the time of
its receipt by Tenant; or

 

(b)                                 which Tenant lawfully obtains from a third
party; or

 

L-2

 

(c)                                  which is not under an obligation of secrecy
or confidentiality to Landlord; or

 

(d)                                 with respect to which Tenant is compelled by
law to disclose.

 

5.                                       Miscellaneous.

 

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

 

(b)                                  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.

 

(c)                                   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.

 

(d)                                  As between Landlord and Tenant, nothing
hereir expands Tenant’s obligations or limits Tenant’s rights under the Lease.

 

(e)                                   This Agreement shall be construed in
accordance with the laws of the State of New York.

 

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

 

(g)                                  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.

 

(h)                                 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

 

L-3

 

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.

 

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

 

	
   

  	
   

  	
   

  	
  , Tenant

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  , Landlord

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

L-4

 

Exhibit M

 

(1)                                 Electrical - The entire electrical distribution system
on the floor of the Premises from the main disconnect switch at the switchboard
serving the floor of the Premises;

 

(2)                                 HVAC. - (w) The air handling unit located on the
floor of the Premises and its attendant devices; (x) the ceiling ductwork
distribution system on the floor of the Premises; (y) the chilled water coil
system located on the floor of the Premises which services the floor’s air
handler; and (z) the entire steam distribution system on the floor of the
Premises from the connection with the Building’s vertical steam conduits and
risers;

 

(3)                                 Water/Plumbing - The entire branch plumbing and sanitary
distribution systems on the floor of the Premises from the connection with the
Building’s vertical water and waste conduits and risers to the public bathrooms
and public drinking fountains located on the floor of the Premises;

 

(4)                                 Fire Safety - (x) The entire sprinklering system located
within the ceiling and walls of the floor of the Premises from the connection
with the Building’s vertical sprinklering conduits and risers; and (y)
individual fire alarm devices located on the floor of the Premises.

 

M-1

EXHIBIT
Q

 

Second Mortgage Lien
Documents

 

 

 

MODIFICATION
OF SUBSTITUTE EXTENSION LOAN NOTE

 

	
  $

  	
   

  	
  As
  of              , 200  

  	
   

  

 

MODIFICATION OF SUBSTITUTE EXTENSION LOAN NOTE made
this       day
of            2004, by and between FC LION LLC, a New York
limited liability company having an address
at                                                (hereinafter called “Borrower”) and [NYTC ENTITY],
a New York
                     having an address at 229 West 43rd
Street, New York, New York 10036 hereinafter called (“Lender”). 

 

WHEREAS, Lender is the holder of the note listed in
Exhibit A annexed hereto and
made apart hereof (hereinafter called the “Original Note”);

 

WHEREAS,
Borrower confirms that the principal amount outstanding under the Original Note is $      and
that there are no offsets, advances, setoffs or counterclaims against payment
of said amount; and

 

WHEREAS, Borrower and Lender desire to modify the terms
of the Original Note as
hereinafter set forth, and as so modified, to constitute a restatement in full
of the Original Note, which shall hereinafter be deemed to be superseded by the
“Note” (hereinafter defined),

 

NOW,
THEREFORE, Borrower and Lender agree that the Original Note constitutes an indebtedness in the principal
amount of $        (hereinafter called the “Principal
Indebtedness” with interest payable as hereinafter set forth.

 

FOR VALUE RECEIVED, without grace, except as expressly
provided for herein and
in the Mortgage, Borrower does hereby covenant and promise to pay to the order
of Lender at 229 West 43rd
Street, New York, New York 10036 or at such other place as Lender may designate
to Borrower in writing from time to time, in legal tender of the United States,
the principal sum
of            and NO/100 DOLLARS
($            ) (hereinafter called the “Principal
Indebtedness”) together with interest on the unpaid principal balance
(hereinafter called the “Principal
Balance”) at a floating rate of interest (hereinafter called the “Interest
Rate”) equal to one (1%) percent per annum above the rate of
interest payable from time to time with respect to that certain [Construction
Loan Note or Bridge Loan Note, as applicable] made by Borrower
to                    dated                    ,
from the date of this Extension Loan Note (hereinafter called the “Note”)
until the Principal Indebtedness shall be fully paid in installments as
follows:

 

 

1

 

(a)            Commencing on the first day
of                       , 200   and continuing on the
first day of each succeeding month thereafter (each such date is hereinafter called an (“Installment Day”) until the
earlier of (x) the Installment Day immediately prior to the Maturity Date
(hereinafter defined) or (y) the maturity date whether by acceleration or otherwise
of the [Construction Loan Note or Bridge Loan Note, as applicable],
monthly payments of interest only on the
Principal Balance in arrears at the Interest Rate, and

 

(b)            On                     ,
200    (hereinafter called the “Maturity Date”) [5 years from substantial completion of Core and
Shell] the Principal Balance with all accrued and unpaid interest thereon shall
be due and payable.

 

Notwithstanding the foregoing, (i) if the unpaid
Principal Balance, together with accrued and unpaid interest thereon is not paid when due, whether on
the Maturity Date or any earlier date upon which such sum is due (by
acceleration or otherwise), or (ii) upon the occurrence
of any “Event of Default” (as defined in the “Mortgage”
(hereinafter defined)), the Principal
Balance shall thereafter bear interest at a rate equal to the lower of (x) 15%
per annum (hereinafter called the “Involuntary
Rate”) or (y) the “Maximum Rate” (as hereinafter defined).

 

Interest on this Note shall be computed on the basis of a
360-day year composed of twelve 30-day months, and only on the Principal
Balance.

 

This Note is secured by a Substitute Extension Loan
Mortgage and Security Agreement (Leasehold) made by Borrower as of the date
hereof (hereinafter called the “Mortgage”) encumbering leasehold interests in
certain property located at [The New York Times Building Condominium,
Units            ], City of New York,
County of New York, State of New York (hereinafter called the “Premises”),
which Mortgage specifies various defaults upon the happening of which all sums owing on this
Note may be declared immediately due and payable.

 

From time to time, without affecting the
obligation of Borrower or its successors or assigns to pay the Principal
Balance and observe the covenants of the Borrower contained herein, without
affecting the guaranty of any person, corporation, partnership or other entity
for payment of the Principal Balance of this Note, without giving notice to or
obtaining the consent of Borrower its successors or assigns or guarantors and
without liability on the part of the Lender, Lender may, at its option, extend the time for
payment of the Principal Balance or any part thereof, reduce the payments
thereon, release anyone liable on any of the Principal Balance, accept a
renewal of this Note, modify the terms and time of payment of the Principal
Balance, join in any extension or subordination agreement, release any security
given heretofore, take or release
other or additional security, and agree in writing with Borrower to modify the
rate of interest or period of amortization
of this Note or change the amount of the monthly installments payable hereunder.

 

 

2

 

Prepayment

 

Borrower shall have the right to prepay the Principal
Balance of the Mortgage, in whole
or in part, without premium or penalty at any time
upon not less than ten (10) days prior written notice to Lender.

 

Waivers

 

Borrower
hereby waives presentment and demand for payment, notice of dishonor, protest and notice of protest of this
Note and agrees to pay all costs of collection when incurred, including,
without limitation, reasonable attorneys’ fees and disbursements (which costs may
be added to the amount due under this Note, be receivable therewith) and to
perform and comply with each of the terms, covenants and provisions contained
in this Note, the Mortgage and the Assignment of Leases and Rents made by
Borrower and given to Lender of even dated herewith
(hereinafter, called the “Assignment of Leases”) on the part of Borrower
to be observed or performed.

 

No Release

 

No
release of any security for: (i) the Principal Balance, (ii) interest accrued
and unpaid thereon and (iii) other sums due under this Note, the Mortgage and
the Assignment of Leases (hereinafter
collectively called the “Debt”) or extension of time for payment of this
Note, or any installment thereof, and no alteration, amendment or waiver of any
provision of this Note, the Mortgage or the Assignment of Leases made by
agreement between Lender and any other person
or party shall release, discharge, modify, change or affect the liability of
Borrower under this Note, the
Mortgage or the Assignment of Leases. The right to plead any and all statutes
of limitations as a defense to any demand on this Note, or any agreement
to pay the same, or any demand secured by the Mortgage, or any and all
obligations and liabilities arising out of or in connection with this Note or
in the Mortgage, is expressly waived by the Borrower and all guarantors,
co-signers or endorsers to the fullest extent permitted by law.

 

Writings

 

This Note may not be changed orally, but only by an
agreement in writing, signed by the party against whom enforcement of any waiver, change, modification or discharge is sought.

 

Event
of Default

 

It is hereby expressly agreed that the entire Debt
shall, then or at any time thereafter,
without notice except as provided in the Mortgage, become immediately due and
payable at the option of Lender on the happening of any Event of Default (as
defined in the Mortgage) and the Mortgage may be foreclosed. Failure to
exercise such option, or any other rights
Lender may be entitled to in the event of any such Event of Default, shall not
constitute a

 

 

3

 

waiver of the right to exercise such option or any other
rights in the event of any subsequent Event of Default, whether of the same or
different nature.

 

Late Charge

 

If any sum payable under this Note (other than principal
and interest payments on the Maturity Date or any earlier date upon which the
Principal Balance is due by acceleration or otherwise) is not paid within ten (10) days of its
due date, Borrower shall pay upon demand a late payment charge of four cents ($.04) for each
dollar ($1) so overdue to defray the expenses incurred by Lender in handling
and processing such delinquent payment, and such amount shall be secured by the Mortgage. A late charge
shall not be imposed from and after the date upon which the Involuntary Rate becomes effective.

 

Involuntary Rate

 

In addition to any late payment charge which may be due
under this Note, from and after the happening of a default under this Note or
the Mortgage, or the declaration that the Debt is immediately due and payable
by Lender pursuant to the provisions of this Note or the Mortgage, or if the
Debt is not paid in full on the Maturity Date, Borrower shall thereafter pay interest on the
Principal Balance from the date of any of such events, as the case may be,
until the date
the Principal Balance is paid in full at the Involuntary Rate or the Maximum
Rate, whichever is the lesser, provided that there shall be no automatic
reduction to the Maximum Rate as to any Borrower hereof barred by law from
availing itself in any action or proceeding of the defense of usury or any
Borrower barred or exempted from the operation of any law limiting the amount
of interest that may be paid for the loan or use of money or in the event this
transaction, because of its amount or purpose or for any other reason, is exempt from
the operation of any statute limiting the amount of interest that may be paid
for the loan or use of money.

 

Notices

 

All notices, demands, request, consents and other
communications which are required or permitted to be given under this Note
shall be in writing and shall be sufficiently given when given as set forth in the
Mortgage.

 

Applicable Law

 

This Note is to be construed and enforced in accordance
with the laws of the State of New York.

 

Maximum
Rate

 

In the event the interest provisions hereof or any exactions
provided for herein or in the Mortgage, the Assignment of Leases, or any other
instrument(s) securing this Note shall

 

 

4

 

result, because of reduction
of principal or for any reason at any time during the life of the loan, in an effective rate of interest which, for any
month, transcends the limit of the usury or any other law applicable to the
loan evidenced hereby (hereinafter called the “Maximum Rate”), all sums
in excess of those lawfully collectible as interest for the period in
question shall, without further agreement or notice between or by any party
hereto, be applied in reduction of the Principal Indebtedness immediately upon receipt of such moneys by Lender with the
same force and effect as though Borrower had specifically designated
such extra sums to be so applied and Lender had agreed to accept such extra
payment(s) as a premium-free prepayment. In no event shall any agreed to or
actual exaction as consideration for this loan transcend the limits imposed or
provided by the law applicable to this transaction or to Borrower in the
jurisdiction in which the land is located for the use or detention of money or
for forbearance in seeking its collection.

 

Joint and Several

 

If
Borrower consists of more than one person or party, the obligations and liabilities of each such person or party hereunder
shall be joint and several. In no event shall any member in Borrower be liable
for any amount outstanding hereunder, but the foregoing shall not be deemed
to limit the liability of Forest City Enterprises, Inc. under that certain
Guaranty executed and delivered to Lender
of even date herewith.

 

Power

 

Borrower represents that Borrower has full power,
authority and legal right to execute and deliver this Note and that the Debt
constitutes a valid and binding obligation of Borrower.

 

Form

 

Whenever used in this Note, the singular number shall
include the plural, the plural
the singular, and the words “Lender” and “Borrower” shall include their
respective successors and assigns.

 

 

5

 

IN WITNESS WHEREOF, Borrower and Lender have duly
executed this Note as of the day and year first above written.

 

 

	
  Tax
  I.D. No.

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  FC
  LION LLC

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  FC 41st Street Associates, LLC

  its
  managing member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  RRG 8 South, Inc.

  its managing member

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LENDER:

  
	
   

  	
   

  
	
   

  	
  [                                                                        ]

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
									

 

 

6

 

FC LION LLC

 

Borrower

 

AND

 

 

[NYTC ENTITY],

 

Lender

 

 

MODIFICATION OF SUBSTITUTE
EXTENSION LOAN MORTGAGE

AND SECURITY AGREEMENT

(LEASEHOLD)

 

 

Dated: As
of                  , 200  

 

Location:            Eighth Avenue, New York,
New York

 

Tax Map Designation:

 

Block:

Lots:

 

 

RECORD AND RETURN TO:

 

Swidler Berlin Shereff Friedman LLP

405 Lexington Avenue

New York, New York 10174

Attention: Martin D. Polevoy, Esq.

 

 

 

 

Table of Contents

 

	
  CERTAIN
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  I REPRESENTATIONS, WARRANTIES AND COVENANTS OF BORROWER

  	
   

  
	
  SECTION 1.01.

  	
  Title; No Encumbrances; First Mortgage

  	
   

  
	
  SECTION 1.02.

  	
  Related Mortgage
  Documents

  	
   

  
	
  SECTION 1.03.

  	
  Filing and Recording
  of Mortgage Documents

  	
   

  
	
  SECTION 1.04.

  	
  Manner of Payment

  	
   

  
	
  SECTION 1.05.

  	
  Compliance With Law

  	
   

  
	
  SECTION 1.06.

  	
  Future Acquisitions

  	
   

  
	
  SECTION 1.07.

  	
  Taxes, Assessments and
  Other Charges

  	
   

  
	
   

  	
  (a)

  	
  Timely Payment

  	
   

  
	
   

  	
  (b)

  	
  Removal of
  Liens

  	
   

  
	
  SECTION 1.08.

  	
  Mortgage Taxes

  	
   

  
	
  SECTION 1.09.

  	
  Insurance

  	
   

  
	
   

  	
  (a)

  	
  Minimum
  Requirements

  	
   

  
	
   

  	
  (b)

  	
  Evidence
  of Insurance; Payment of Proceeds

  	
   

  
	
   

  	
  (c)

  	
  Use of Proceeds

  	
   

  
	
   

  	
  (d)

  	
  Restriction on
  Separate Insurance

  	
   

  
	
   

  	
  (e)

  	
  Flood Insurance

  	
   

  
	
  SECTION
  1.10.

  	
  Permanent Financing

  	
   

  
	
  SECTION
  1.11.

  	
  Lender’s Right To Cure
  Defaults

  	
   

  
	
  SECTION 1.12.

  	
  Borrower’s Finances

  	
   

  
	
   

  	
  (a)

  	
  Books and Records

  	
   

  
	
   

  	
  (b)

  	
  Annual Financial Statement

  	
   

  
	
   

  	
  (c)

  	
  Intentionally
  Omitted

  	
   

  
	
   

  	
  (d)

  	
  Prohibition Against
  Waste or Change in Use

  	
   

  
						

 

 

 

7

 

	
   

  	
  (e)

  	
  Legal
  Proceedings

  	
   

  
	
  SECTION 1.13.

  	
  Condemnation

  	
   

  
	
  SECTION 1.14.

  	
  Leases

  	
   

  
	
   

  	
  (a)

  	
  Assignment

  	
   

  
	
   

  	
  (b)

  	
  Restrictions
  on Leasing

  	
   

  
	
   

  	
  (c)

  	
  Rent Roll

  	
   

  
	
   

  	
  (d)

  	
  Tenant Estoppel
  Certificates

  	
   

  
	
   

  	
  (e)

  	
  Copies of
  Leases

  	
   

  
	
  SECTION 1.15.

  	
  Subordination and
  Attornment

  	
   

  
	
  SECTION 1.16.

  	
  Lien Law

  	
   

  
	
  SECTION 1.17.

  	
  Borrower Estoppel
  Certificate

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II EVENTS OF
  DEFAULT AND REMEDIES

  	
   

  
	
  SECTION
  2.01.

  	
  Events of Default

  	
   

  
	
   

  	
  (a)

  	
  Nonpayment

  	
   

  
	
   

  	
  (b)

  	
  Misrepresentation

  	
   

  
	
   

  	
  (c)

  	
  Other Defaults

  	
   

  
	
   

  	
  (d)

  	
  Liquidation or Receivership

  	
   

  
	
   

  	
  (e)

  	
  Voluntary
  Bankruptcy

  	
   

  
	
   

  	
  (f)

  	
  Involuntary
  Bankruptcy

  	
   

  
	
   

  	
  (g)

  	
  Intentionally
  Omitted

  	
   

  
	
   

  	
  (h)

  	
  Illegal Taxes

  	
   

  
	
   

  	
  (i)

  	
  Other Mortgages

  	
   

  
	
   

  	
  (j)

  	
  Intentionally
  Omitted

  	
   

  
	
   

  	
  (k)

  	
  Cross-Default

  	
   

  
	
   

  	
  (1)

  	
  Hazardous Materials
  Violation

  	
   

  
	
  SECTION 2.02.

  	
  Sale by Lender

  	
   

  
	
   

  	
  (a)

  	
  Time and Place of
  Sale

  	
   

  
	
   

  	
  (b)

  	
  Transfer
  of Mortgaged Property; Borrower Ratification

  	
   

  
					

 

 

8

 

 

	
   

  	
  (c)

  	
  Note Due on Sale

  	
   

  
	
   

  	
  (d)

  	
  Application of Sale
  Proceeds

  	
   

  
	
   

  	
  (e)

  	
  Acquisition of
  Mortgaged Property by Lender

  	
   

  
	
  SECTION 2.03.

  	
  Borrower’s Liability

  	
   

  
	
   

  	
  (a)

  	
  Accelerated
  Payment

  	
   

  
	
   

  	
  (b)

  	
  Accelerated
  Judgment

  	
   

  
	
   

  	
  (c)

  	
  Non-Limitation
  of Lender’s Rights

  	
   

  
	
   

  	
  (d)

  	
  Application
  of Judgment Proceeds

  	
   

  
	
  SECTION
  2.04.

  	
  Receiver

  	
   

  
	
  SECTION
  2.05.

  	
  Lender Control

  	
   

  
	
  SECTION
  2.06.

  	
  Non-Waiver

  	
   

  
	
  SECTION 2.07.

  	
  Waiver of Right of Redemption

  	
   

  
	
  SECTION 2.08.

  	
  Use and Occupancy Fee;
  Surrender of Premises

  	
   

  
	
  SECTION 2.09.

  	
  Payment of Lender’s
  Expenses

  	
   

  
	
  SECTION 2.10.

  	
  Lender Right to Cure

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III
  MISCELLANEOUS

  	
   

  
	
  SECTION 3.01.

  	
  Severability

  	
   

  
	
  SECTION 3.02.

  	
  Notices

  	
   

  
	
  SECTION 3.03.

  	
  Successors and Assigns

  	
   

  
	
  SECTION 3.04.

  	
  Limitations of Law

  	
   

  
	
  SECTION 3.05.

  	
  Counterparts

  	
   

  
	
  SECTION 3.06.

  	
  Future Mortgage Taxes

  	
   

  
	
  SECTION 3.07.

  	
  Real Property Law

  	
   

  
	
  SECTION 3.08.

  	
  Cover Sheet

  	
   

  
	
  SECTION 3.09.

  	
  New York Law

  	
   

  
	
  SECTION 3.10.

  	
  No Member Liability

  	
   

  
	
  SECTION 3.11.

  	
  Non-Residential Dwelling

  	
   

  
	
  SECTION 3.12.

  	
  Partial Payments

  	
   

  
	
  SECTION 3.13.

  	
  Hazardous Materials

  	
   

  

 

 

9

 

 

	
   

  	
  (a)

  	
  Representations and
  Warranties

  	
   

  
	
   

  	
  (b)

  	
  Removal of Hazardous
  Materials

  	
   

  
	
   

  	
  (c)

  	
  Indemnification

  	
   

  

 

 

10

 

 

	
  EXHIBITS

  	
   

  
	
   

  	
   

  
	
   

  	
  A.

  	
  Mortgage
  Schedule

  	
   

  
	
   

  	
  B.

  	
  Description
  of Premises

  	
   

  
					

 

 

11

 

THIS MODIFICATION OF SUBSTITUTE EXTENSION LOAN MORTGAGE
AND SECURITY AGREEMENT (LEASEHOLD) made as of
the             day
of               , 200   between FC LION LLC, a New York limited
liability company, having an address at One MetroTech
Center North, Brooklyn, New York 11201 (“Borrower”) and [NYTC ENTITY], a
               ,
having an office at 229 West 43rd Street, New York, New York 10036 having an office at (“Lender”).

 

WHEREAS:

 

A.            Lender is the holder of the mortgage listed on
Exhibit A annexed hereto and made a part hereof (hereinafter
collectively called the “Original Mortgage”);

 

B.              The outstanding principal amount secured by the Original
Mortgage is  $                  ;

 

C.             The Original Mortgage is a second mortgage lien
covering the Mortgage Property (as such term is hereinafter defined), which
lien is to secure payment of the modified note evidenced by that certain
Modification of Substitute Extension Loan Note (hereinafter called the “Note”)
of even date given by Borrower to Lender in the principal amount of
$           ; and

 

D.             Borrower
and Lender desire to modify and restate the Original Mortgage upon the
terms set forth herein and, as so
modified to constitute a restatement in full of the Original Mortgage, which
shall hereinafter be deemed to be superseded by the “Mortgage”  (hereinafter defined);

 

CERTAIN
DEFINITIONS

 

Unless the context otherwise specifies or requires, the
following terms shall have the
meanings herein specified, such definitions to be applicable equally to the
singular and the plural forms of such
terms.

 

“Affiliate” means, as used with respect to
any person or entity, any other person or entity directly or indirectly
controlling, controlled by or under common control with, such person or entity.
For purposes of this definition, the term “control” (including the
correlative meanings of the terms “controlling”,
“controlled by” and “under common control with”), as used with
respect to any person or entity, shall mean (a) the possession, directly or
indirectly, of the power to direct or cause the direction of the management
policies of such person or entity,

 

 

 

1

 

 

whether through the ownership of voting securities or by contract or
otherwise, provided (but without limiting
the foregoing) that no pledge of voting securities of any person or entity
without the current right to exercise voting rights with respect thereto
shall by itself be deemed to constitute
control over such person or entity, and (b) equity ownership in such person or
entity of fifty-one percent (51%) or more of all equity, capital and
profits interests.

 

“By-laws” means the by-laws of the condominium
adopted pursuant to the “Declaration”.

 

“Chattels”
means all fixtures, fittings, appliances, apparatus, equipment, machinery and articles of personal property and
additions thereto and replacements thereof, now or at any time hereafter
owned by Borrower and affixed to,
attached to, placed upon, or used in any way in connection with the complete
and comfortable present or future use, enjoyment, occupancy or operation of the
Improvements on the Premises.

 

“Debt”
means the principal amount evidenced by the Note together with all interest and any other sums which may or shall
become due under the Note or this Mortgage.

 

“Declaration” means that Declaration described in
the definition of “Premises” herein.

 

“Events of Default” means the events and
circumstances described as such in Section 2.01 hereof.

 

“Ground Lease” means, collectively, (x) that
certain Agreement of Sublease by and
between The New York Times Building, LLC, Landlord, and Borrower, Tenant, dated
as of          , 2001, a
memorandum of which was recorded in the Office of the Register of the City of New York, New York County (the “Register’s
Office”)
on            , 2001, as amended by [Amendment]
dated            , 200  , a memorandum of which
[Amendment] was recorded in the Register’s Office on            ,
200   , the Landlord’s interest in which Agreement of Sublease has been
assigned to 42nd St. Development Project, Inc. by Assignment and Assumption
Agreement dated         , 200  , between The New York Times
Building, LLC, assignor, and 42nd St. Development Project, Inc.,
assignee; and (y) that certain Agreement of Sublease
by and between The New York Times Building, LLC, Landlord, and Borrower,
Tenant, dated as
of      , 2001, a memorandum of which was
recorded in the Register’s Office on
         , 2001, as amended by [Amendment]
dated            ,
200  , a memorandum of which
[Amendment] was recorded in the Register’s Office
on            , 200   , the Landlord’s interest
in which Agreement of Sublease has been assigned to 42nd St. Development
Project, Inc. by Assignment and Assumption
Agreement
dated              , 200  , between The New York Times
Building, LLC, assignor, and 42nd St. Development Project, Inc., assignee [AND ANY
OTHER AGREEMENT(S) OF SUBLEASE BETWEEN THE NEW YORK TIMES BUILDING, LLC, AS
LANDLORD, AND BORROWER, AS TENANT, (IDENTIFY)].

 

 

2

 

 

“Improvements”
means all structures or buildings owned by Borrower, to be erected or now or
hereafter located upon the Premises, including all of Borrower’s plant equipment, apparatus, machinery and fixtures of
every kind and nature whatsoever forming part of said structures or
buildings.

 

“Involuntary Rate” means the lesser of (x)
fifteen percent (15%) per annum, or (y) the highest rate of interest per annum allowed by law for loans
evidenced by the Note and secured by this
Mortgage.

 

“Mortgage” means this Substitute Extension
Loan Mortgage and Security Agreement, which mortgage has resulted from the
severance and splitter of the Original Mortgage more particularly described on Exhibit A annexed hereto.

 

“Mortgage Amount” means the amount
secured by this Mortgage as of the date hereof, i.e.,
$                    .

 

“Premises” means the units designated as Unit(s)
No(s)                 through                  in the Declaration establishing a plan of
leasehold condominium ownership of premises located at                 Eighth
Avenue, New York, New York pursuant to Article
9-B of the Real Property Law of the State of New York
dated                 and recorded in the office of the Register
of the City of New York, New York County on                  in Reel                 , Page                 ,
together with plans designated Condominium Plan
No.                 ,
covering the land described on Exhibit B annexed hereto including the percentage interest of the owner of Unit(s) (No(s).                 through                 comprising
a        percentage interest therein
in and to all common elements including all of the easements, rights,
privileges and appurtenances (including, without limitation, any air or
development rights) thereunto belonging or
in anywise appertaining, and all of the estate, right, title, interest, claim
or demand whatsoever of Borrower therein and in the rights-of-way, gores
of land, streets, ways, alleys, passages, sewer rights, waters, water courses,
water rights and powers, and all estates, rights, titles, interests,
privileges, tenements, hereditaments, and appurtenances of any nature
whatsoever, in any way belonging, relating or pertaining thereto, either in law
or in equity, in possession or expectancy, now or hereafter acquired.

 

All terms of this
Mortgage which are not defined above shall have the meaning set forth elsewhere
in this Mortgage.

 

NOW, THEREFORE,
Borrower, in consideration of the premises and in order to secure the payment of the Debt and the performance
and observance of all of the provisions of this Mortgage and of the Note,
hereby gives, grants, bargains, sells, releases, conveys, assigns, transfers, mortgages, hypothecates, pledges, sets
over and confirms unto Lender, the leasehold interest of Borrower under
the Ground Lease in the Premises (the “Leasehold”) and the

 

 

3

 

 

Improvements, together with all of Borrower’s estate,
right, title and interest in, to and under any and all of the following described property
(hereinafter, together with the Leasehold and the Improvements, collectively
called the “Mortgaged Property”) whether now owned or held or hereafter acquired:

 

(i)            the Chattels;

 

(ii)           all proceeds of the conversion,
voluntary or involuntary, of any of the foregoing into cash or liquidated claims, including,
without limitation, proceeds of insurance and condemnation
awards, and all rights of Borrower to refunds of real estate taxes and
assessments and the reasonable attorney’s fees, costs and disbursements
incurred by Lender in connection with the collection of such award or payment;

 

(iii)          all
leases of the Premises now or hereafter entered into and all right, title and
interest of Borrower thereunder, including, without limitation, cash or
securities deposited thereunder to secure performance by the lessees of their
obligations thereunder, whether such cash or securities are to be held until
the expiration of the terms of such leases or applied to one or more of the installments of rent coming due
immediately prior to the expiration of such terms, including, further, the
right upon the happening of an Event of Default, to receive and collect the rents
thereunder; and

 

(iv)          all proceeds of any unearned premiums
on any insurance policies covering the Premises, including, without limitation, the right to receive and apply
the proceeds of any insurance, judgments or
settlements made in lieu thereof, for damage to the Premises.

 

The Leasehold and the Improvements are hereinafter sometimes
collectively referred to as the “Leasehold Premises.”

 

As to any of the Mortgaged Property aforesaid which does
not form a part and parcel
of the real estate, this Mortgage is and is hereby deemed to be, as well, a
Security Agreement under the Uniform
Commercial Code for the purpose of creating hereby a security interest in such property, which is hereby granted
to Lender as “Secured Party” (as said quoted term is defined in
the Uniform Commercial Code), securing the aforesaid indebtedness and obligations.

 

TO HAVE AND TO HOLD
unto Lender, its successors and assigns forever.

 

ARTICLE
I

REPRESENTATIONS,
WARRANTIES AND COVENANTS OF BORROWER

 

Borrower represents,
warrants and covenants as follows:

 

 

4

 

 

SECTION 1.01.             Title; No Encumbrances; First Mortgage.  Borrower
warrants leasehold title to the
Mortgaged Property subject to no lien, charge or encumbrance except (a) that
certain [Residual Construction Loan Mortgage] dated as
of       made
by Borrower to in the amount of $            and
recorded
on            ,            in
the Office of the City Register of New York
County (hereinafter called the “Register’s Office”) on
Reel            ,
Page        (hereinafter called the “First
Mortgage”), which mortgage has resulted from the severance and splitter of
the Original Mortgage more particularly described on Exhibit A annexed hereto;
and (b) such other encumbrances as would be listed as exceptions to title in a
title policy were same dated as of the date
hereof insuring Lender’s lien of this Mortgage; that it owns the Chattels free and
clear of liens and claims; and that this Mortgage is and will remain a valid
first lien on the Mortgaged Property subject
only to the exceptions referred to above. Borrower has full power and lawful authority to mortgage the Mortgaged
Property in the manner and form herein done or intended hereafter to be done. Borrower will preserve such title, and
will forever warrant and defend the same to Lender and Borrower will forever
warrant and defend the validity and priority
of the lien hereof against the claims of all persons and parties whomsoever but
not to the provider of title
insurance insuring this Mortgage. This Mortgage is in all respects subject and subordinate
to the First Mortgage and the Declaration and to all modifications, renewals
and extensions of each of them, in the case of the First Mortgage, to the
extent and subject to the provisions of that certain Subordination and
Intercreditor Agreement of even date herewith between Lender and the holder of
the First Mortgage.

 

SECTION 1.02.             Related Mortgage Documents.  Borrower will, at its sole cost and expense,
and without expense to Lender, do, execute, acknowledge and deliver all and
every such further acts, deeds, conveyances, mortgages, assignments, notices of
assignment, subordinations, transfers and
assurances as Lender shall from time to time reasonably require, for the
better assuring, conveying, assigning, transferring and confirming unto Lender
the property and rights hereby conveyed or
assigned or intended now or hereafter so to be, or which Borrower may be
or may hereafter become bound to convey or assign to Lender, or for carrying
out the intention or facilitating the
performance of the terms of this Mortgage, or for filing, registering or
recording this Mortgage and, on demand, will execute and deliver, and hereby
authorizes Lender to execute and file in Borrower’s name, to the extent
it may lawfully do so, one or more financing statements, chattel mortgages or
comparable security instruments, to evidence more effectively the lien of this
Mortgage upon the Chattels.

 

SECTION 1.03.             Filing
and Recording of Mortgage Documents.

 

(a)           Recording.
Borrower forthwith upon the execution and delivery of this Mortgage, and thereafter from time to time, will cause this
Mortgage and any security instrument creating a lien or evidencing the
lien of this Mortgage upon the Chattels and each instrument of further
assurance to be filed, registered or recorded in such manner and in such places
as may be required by any present or future law in order to publish notice of
and fully to protect the lien of this
Mortgage upon, and the interest of Lender in, the Mortgaged Property, provided
that no such

 

 

5

 

 

instrument of further assurance will materially increase
the obligations of Borrower under this Mortgage.

 

(b)           Recording Fees.  Borrower
will pay all filing, registration or recording fees, and all expenses incident to the execution and
acknowledgment of this Mortgage, any mortgage supplemental
hereto, any security instrument with respect to the Chattels, and any
instrument of further assurance, and all federal, state, county, and
municipal stamp taxes and other taxes, duties, imposts, assessments and charges
arising out of or in connection with the execution and delivery of the Note, this Mortgage, any mortgage supplemental hereto,
any security instrument with respect to the Chattels or any instrument
of further assurance.

 

SECTION 1.04.             Manner of Payment.  Borrower will
punctually pay the principal and
interest and all other sums to become due in respect of the Note at the time
and place and in the manner specified in
the Note, according to the true intent and meaning thereof, all in any coin or
currency of the United States of America which at the time of such payment
shall be legal tender for the payment of
public and private debts.

 

SECTION 1.05.             Compliance
With Law.  Borrower will do all things necessary to preserve and
keep in full force and effect its existence, franchises, rights and privileges
as a business or stock corporation, limited liability company, partnership,
trust or other entity under the laws of the state of its formation and will
comply with all regulations, rules, statutes, orders and decrees of any governmental authority or court applicable to it or
to the Mortgaged Property or any part
thereof.

 

SECTION 1.06.             Future Acquisitions.  All right, title and interest of
Borrower in and to all extensions,
improvements, betterments, renewals, substitutes and replacements of, and all additions and appurtenances to, the Mortgaged
Property, hereafter acquired by, or released to Borrower or constructed,
assembled or placed by Borrower on the Mortgaged Property, and all conversions
of the security constituted thereby, immediately upon such acquisition,
release, construction, assembling, placement or conversion, as the case may be,
and in each such case, without any further mortgage, conveyance, assignment or
other act by Borrower, shall become subject
to the lien of this Mortgage as fully and completely, and with the same effect,
as though now owned by Borrower and specifically described in the granting
clause hereof, but at any and all
times Borrower will execute and deliver to Lender any and all such further
assurances, mortgages, conveyances or assignments thereof as Lender may
reasonably require for the purpose of expressly and specifically subjecting the
same to the lien of this Mortgage.

 

SECTION 1.07.             Taxes, Assessments and Other Charges.

 

(a)           Timely
Payment.  Subject to the terms and provisions of Section
1.07(b) hereof, Borrower, from time to time, will pay and discharge prior
to the date interest or penalties attach all taxes of every kind and nature
(including, without limitation, real and personal property taxes

 

 

6

 

and income, franchise,
withholding, profits and gross receipts taxes), all general and special
assessments, levies, permits, inspection and license fees, all water and sewer
rents and charges, and all other public charges whether of a like or different
nature, imposed upon or assessed against it
or the Mortgaged Property (which for purposes hereof shall include the entirety
of any tax lot of which the Mortgaged Property constitutes a part) or
any part thereof or upon the revenues,
rents, issues, income and profits of the Mortgaged Property or arising in
respect of the occupancy, use or
possession thereof. Borrower will, upon Lender’s request, deliver to Lender receipts
evidencing the payment of all such taxes, assessments, levies, fees, rents and
other public charges imposed upon or assessed against it or the Mortgaged
Property or the revenues, rents, issues, income or profits thereof.

 

(b)           Removal of
Liens.  Borrower will pay or bond so as to remove a lien of
record, from time to time when the same shall become due, all lawful claims and
demands of mechanics, material
men, laborers, and others which, if unpaid, might result in, or permit the
creation of, a lien on the Mortgaged
Property or any part thereof, or on the revenues, rents, issues, income and profits
arising therefrom and in general will do or cause to be done everything
necessary so that the lien of this Mortgage
shall be fully preserved, at the cost of Borrower and without expense to Lender.

 

SECTION 1.08.             Mortgage
Taxes.  Borrower will pay any taxes, except income and gross receipts taxes, imposed on Lender by reason
of its ownership of the Note or this Mortgage.

 

SECTION 1.09.             Insurance.

 

(a)           Minimum
Requirements.  Borrower will keep the Improvements and
Chattels insured against
loss by fire, casualty and such other hazards as may reasonably be specified by
Lender for the benefit of Lender. Such
insurance shall be written in forms, amounts, and by companies satisfactory to the landlord under the
Ground Lease, the holder of the First Mortgage and to Lender, and,
subject to the provisions of the First Mortgage, losses thereunder shall be payable to Lender pursuant to a standard first
Lender endorsement substantially equivalent to the New York standard
Lender endorsement. Without limiting the generality of the foregoing, such
insurance shall include (i) coverage for contingent liability from operation of
building laws together with a demolition cost endorsement, (ii) rental
insurance based upon 100% of the then current
rents receivable for a period of not less than twelve (12) months naming Lender
as loss payee, (iii) comprehensive general public liability insurance
against claims for bodily injury, death or property damage in amounts not less
than $1,000,000 for bodily injury or death (combined single limit) and not less
than $500,000 for property damage and (iv) boiler and machinery insurance in an amount acceptable to Lender. All insurance
policies shall not be cancelable or materially modifiable except after
thirty (30) days written notice to Lender and premiums
thereon shall be prepaid for not less than one year. Lender acknowledges that satisfaction
of the insurance requirements of Borrower under the First Mortgage and the
Declaration satisfies the requirements of this subsection (a) as to the
insurer, the coverages and

 

 

7

 

the policy limits.

 

(b)                   Evidence of
Insurance; Payment of
Proceeds.  The
originals or certified copies of all policies of insurance, together with
original certificates or binders thereof required by this Mortgage shall be delivered to Lender. Renewals
of such policies shall be delivered to Lender at least ten (10) days
before any such insurance shall expire. Borrower shall give Lender prompt notice of any loss covered by such insurance and
Lender shall have the right to join Borrower in adjusting any loss. In
addition, after the entry of any decree of foreclosure of this Mortgage, any purchaser
at foreclosure sale or the decree creditor, as the case may be, shall also have
the right to join in the adjustment of any such losses. Subject to the First
Mortgage and the Declaration and further subject to the provisions of
subsections (c) and (d) below, any moneys received as payment for any loss
under any such insurance shall be paid over to the Lender to be applied without prepayment premium, at Lender’s option,
either to the prepayment of the Note at the rate of interest provided therein, or to the reimbursement of Borrower from
time to time for expenses incurred by it in the restoration of the Improvements
and upon terms otherwise satisfactory to Lender in Lender’s sole discretion.
The rights of Lender specified in this Mortgage supersede its rights under
Section 254 of the New York Real Property Law.

 

(c)                   Use of Proceeds.  Subject
to the terms and conditions of the Ground Lease and First Mortgage,
notwithstanding the foregoing, Lender shall endorse over to Borrower the
proceeds of individual insured claims that do not exceed $250,000.00 for use
toward restoration of the Mortgaged Property. Upon restoration, Borrower shall
provide Lender evidence reasonably acceptable to it that the funds have been so
used. Further, and subject to the provisions of the Ground Lease, unless it
cannot be demonstrated to the reasonable satisfaction of Lender that (i) the
Mortgaged Property can be substantially restored to its condition immediately prior to the damage, and (ii) the
damage or destruction is capable of being restored within a twelve (12)
month period from the receipt of insurance proceeds, in the Lender’s reasonable judgment (provided rent insurance is
in effect for the entire period of reconstruction), in which event Lender’s
option as to the application of insurance proceeds shall continue to apply,
Lender agrees to make proceeds of such insurance available for the repair and
restoration of the Improvements, not by way of application against and
readvancement of loan funds under the Mortgage but solely as a security
fund from which to reimburse Borrower for the costs of such repair and
restoration for so long as there has been no transfer of the Mortgaged Property
other than such transfer as may be permitted
pursuant to Section 2.01(j) hereinafter set forth, and in the absence of an Event of Default under this
Mortgage, but only on the following terms and conditions:

 

(A)          If the Improvements should be damaged
or destroyed by fire or other casualty,
Borrower shall promptly upon insurance settlement, which settlement shall be
diligently pursued, commence the work of repair and restoration of the
Improvements. Borrower shall pay or cause to be paid all expenses in connection
with such repair and restoration of the Improvements so that the Mortgaged
Property, at all times, shall be and remain free and clear

 

 

8

 

from any and all liens and claims for labor, materials,
fees and any other liens, title retention devices, charges or expenses.

 

(B)                                    In defraying the costs
and expenses that may be incurred by Borrower in the repair and restoration of the Mortgaged Property (but only so long
as such repair and restoration can be completed within the period for
restoration hereinbefore specified), Lender shall make proceeds from policies
of insurance required to be carried under the Mortgage available to Borrower as
provided in subsection (D) below and Borrower shall utilize such proceeds only
for the purposes of repairing and restoring the Improvements and for no other
purpose whatsoever, except as hereinafter set forth. All sums necessary to
effect the repair and restoration of the Improvements over and above the amount
available from said insurance monies, shall be at the sole cost and expense of
Borrower. Any unexpended insurance proceeds remaining after completion of such
repair and restoration shall be paid over to Borrower.

 

(C)                                    At all times during any repair, demolition,
construction, renovation or restoration of
the Improvements, Borrower, at the cost and expense of the Borrower, shall
obtain or cause to be maintained workmen’s compensation and public
liability insurance in amounts necessary to
protect Borrower and Lender from all liabilities, damages, claims or demands arising
out of any accident or occurrence causing injury or death to any person or
property whatsoever. All insurance shall be
with responsible insurance companies, licensed and authorized to
transact business in the State of New York and shall be written in forms,
amounts and by companies reasonably
satisfactory to Lender. Nothing contained herein shall relieve Borrower from any requirement of the Lender
regarding the insuring of the Mortgaged Property.  The originals or
certified copies of all policies of insurance, together with original
certificates or binders thereof
required by this Agreement shall be delivered to Lender. Renewals of such policies shall be delivered to Lender at least
ten (10) days before any such insurance shall expire.

 

(D)                                All insurance proceeds recovered by or paid
to Lender on account of damage or
destruction to the Improvements, less the actual out-of-pocket cost, if any, to
Lender of such recovery and of paying out such proceeds (including reasonable
attorneys’ fees and costs allocable to inspecting the work and the plans
and specifications therefor), upon the written request of Borrower, shall be
applied by the Lender to the payment of the cost of repairing and restoring the Improvements so damaged or
destroyed (hereinafter referred to as the “Work”) and shall be
paid out from time to time to the Borrower as the Work progresses, but subject
to the following conditions:

 

(i)                                     If the Work is
structural or if the cost of the Work is reasonably estimated to exceed Two Hundred Fifty Thousand Dollars
($250,000), the Work shall be supervised by a registered
architect or engineer and inspected by a consultant engaged by Lender at the
cost and expense of Borrower
(hereinafter called the “Inspector”). Before Borrower commences any Work,
other than temporary Work to protect property or prevent interference with
business, Lender shall have been furnished
and approved (i) an estimate of the cost of restoration or repair

 

9

 

accompanied
by an architect’s certification as to such costs and (ii) appropriate final
plans and specifications for the Work, it being nevertheless understood that
said plans and specifications shall provide
for Work so that, upon completion thereof, the Improvements shall be comparable
in character and equal in value and general utility to the Improvements
prior to the damage or destruction. Borrower
shall furnish Lender with evidence satisfactory to Lender that the Improvements
so restored and/or repaired and their contemplated use fully comply with all zoning,
environmental and building laws, ordinances and regulations, and with all other
applicable federal, state and municipal laws and requirements;

 

(ii)           Each request for payment shall be
made on ten (10) days prior notice to Lender and shall be accompanied by
certificates to be made by the Inspector or, if none shall be required, by the
management agent and an officer of Borrower, stating (aa) that all of the Work
completed has been done in compliance with the approved plans and
specifications, if any be required under
subsection (a)(i) above, (bb) that the sum requested is justly required to
reimburse the Borrower for payments by Borrower, or is justly due to the
contractor, subcontractors, material men, laborers, engineers, architects or
other persons rendering services or materials for the Work (giving a brief
description of such services and materials), and that (prior to the final
completion of the Work) the requested payment does not exceed the greater of
(x) the retainage required pursuant to the
applicable general contract or subcontract or (y) 90% of the value of the Work
performed (hereinafter called the “Applicable Percentage”) and that all
sums previously paid out by Lender do not exceed the Applicable Percentage of
the aggregate value of the Work done to the date of such certificate, (cc) that
if the sum requested is to cover payment relating to repair and restoration of
personal property required or relating to the Mortgaged Property, that title to
the personal property items covered by the request for payment is vested in
Borrower, (dd) that the amount of such proceeds remaining in the hands of
Lender will be sufficient on completion of
the Work to pay for the same in full and free and clear of liens. Additionally,
each request for payment as above shall contain a statement signed by
the managing agent and an officer of Borrower approving both the Work done to
date and the Work covered by the request for
payment in question;

 

(iii)          Each request shall be accompanied by
invoices, or, with respect to Work completed
and paid for, receipts or waivers of lien satisfactory to Lender covering that
part of the Work for which payment or reimbursement is being requested
and, if required by Lender, a search prepared by a title company or licensed
abstractor or by other evidence satisfactory to Lender that there has not been
filed with respect to the Mortgaged Property any mechanics’ or other lien or instrument for the retention of
title in respect of any part of the Work not discharged of record, by
payment, bonding or otherwise. Additionally, as to any personal property,
Lender shall be furnished with evidence of payment covered by the request for
payment therefor and evidence of payment
satisfactory to Lender of its valid first lien on the personal property;

 

(iv)          There
shall be no Event of Default under any loan document held by Lender securing
the Note;

 

 

10

 

(v)           The request for final payment after
the Work has been completed shall be accompanied by (i) a copy of any
certificate or certificates required by law to render occupancy and full
operation of the Mortgaged Property legal, (ii) a certification by the
Inspector as to completion in accordance
with the approved plans and specifications and an architect’s certificate of
completion, (iii) the filing of a Notice of Completion and the expiration of
the period, provided under New York law for the filing of mechanics’ and
material men’s liens;

 

(vi)          Lender
may at its option require an endorsement to its title insurance policy insuring the continued priority of the
lien of the Mortgage as to all sums
advanced hereunder, such endorsement to be paid for by Borrower; and,

 

(vii)         Upon any failure on the part of
Borrower to commence the Work or to proceed diligently and continuously to
completion of the Work, subject to force majeure delays, but not to exceed
twelve (12) months, Lender may apply the amount of any such proceeds then or thereafter in the hands of Lender to the
payment of any indebtedness secured by the Mortgage, or to the
restoration of the Mortgaged Property, as it shall elect. Upon completion of
the Work in accordance with the terms hereof, any excess proceeds remaining
unused after completion shall be paid over
to the Borrower. Providing, however, Lender shall be entitled to apply at any
time the whole or any part of insurance proceeds then held by it to the
curing of any Event of Default under the Mortgage, or any other instrument taken in connection with
the Note.

 

It is understood that
the foregoing provisions of this Section 1.09(c) shall not apply to any proceeds which are
governed by the Declaration. In addition, Lender hereby consents to all disbursements of proceeds consented to or
otherwise approved by the holder of the First Mortgage
and agrees that satisfaction of the requirements regarding the disbursement of
proceeds under the First Mortgage shall be deemed to satisfy the
requirements hereunder and of Lender.

 

(d)             Restriction
on Separate Insurance.  Borrower
shall not take out separate insurance concurrent in form or contributing
in the event of loss with that required to be maintained under this Section
1.09 unless Lender is included thereon as a named insured with loss payable to Lender under a standard Lender endorsement of the
character above described. Borrower shall immediately notify Lender whenever any such separate insurance is taken
out and shall promptly deliver to Lender the policy or policies of such
insurance.

 

(e)             Flood
Insurance.  If the Premises are located in an area
which has been identified by the Secretary
of the United States Department of Housing and Urban Development as a flood hazard
area, Borrower will keep the Improvements covered, until all sums secured by
this Mortgage have been repaid in full, by flood insurance in an amount
satisfactory to Lender.

 

SECTION 1.10.             Permanent
Financing. Borrower shall at all times until the Debt is paid in full use commercially reasonable efforts
to obtain permanent financing on a non-recourse

 

 

11

 

basis
(other than customary carve-outs to non-recourse provisions then generally
being required by institutional permanent
mortgage lenders) in the amount required to repay the First Mortgage and the
Debt secured by this Mortgage (“Permanent Financing”).  Upon request by Lender from time to
time, Borrower will report the status of its efforts and the measures taken to
obtain the Permanent Financing, recognizing
that if the financing markets are in turmoil so that it is futile to attempt
to obtain a commitment for the Permanent Financing, it shall be commercially reasonable for Borrower during such period that
the financing markets are in turmoil to curtail its efforts including
the tenacity and frequency with which it contacts lenders or solicits proposals
for commitments from such lenders for the
Permanent Financing.

 

SECTION 1.11.             Lender’s Right To Cure Defaults.  If Borrower shall fail to perform any of the representations, warranties and
covenants contained in Sections 1.03, 1.07, 1.08, 1.09 or elsewhere herein beyond notice and applicable
grace periods, Lender may make advances to perform the same on its behalf, and
all sums so advanced, with interest at the Involuntary Rate, shall immediately
be due from Borrower to Lender, and shall be added to the Debt and shall be secured
by this Mortgage. The provisions of this Section shall not prevent any default
in the observance of any of the representations, warranties and covenants
contained in said Sections 1.01, 1.03,
1.07, 1.08, 1.09 or elsewhere herein from constituting an Event of Default.

 

SECTION 1.12.             Borrower’s Finances.

 

(a)                                      Books and
Records.  Borrower will keep adequate
records and books of account in accordance with generally accepted accounting
principles, consistently applied, and will permit Lender, by its agents,
accountants and attorneys, to visit and inspect the Premises and examine such
records and books of account and to discuss such affairs, finances, and
accounts with the officers of Borrower, at
such reasonable times on reasonable notice as may be requested by Lender.

 

(b)                                   Annual Financial Statement.  Commencing
with fiscal
year              , Borrower will deliver to Lender
within 120 days after the close of its fiscal year, a balance sheet and
statement of profit and loss of
review quality or better for both Borrower and the Mortgaged Property setting forth, in comparative form, figures for
the preceding fiscal year, audited and certified by Borrower or an
independent certified public accountant reasonably satisfactory to Lender. Said
statement and balance sheet shall list the
income and expenses of the Mortgaged Property and contain a current accurate
rent roll certified by Borrower to be true and correct. Upon request of Lender,
Borrower shall make available to Lender convenient facilities at the office of
Borrower for the audit and verification of any such statement.
Throughout the term of this Mortgage, Borrower
will deliver to Lender with reasonable promptness, copies of the foregoing and
such other information with respect to Borrower and the Mortgaged Property as
Lender may reasonably request from time to time, including, without
limitation, such further and additional financial
information as Borrower shall be required to provide under the terms of the
First Mortgage. All financial statements of Borrower shall be prepared
in accordance with generally

 

 

12

 

accepted
accounting principles, consistently applied, and shall be delivered in
duplicate.

 

(c)                                      Intentionally Omitted.

 

(d)                                     Prohibition Against Waste or Change
in Use.  Borrower
will not commit any waste on the Leasehold Premises. Borrower will, at all
times, maintain the Improvements and Chattels in good operating order and condition and will promptly make,
from time to time, all repairs, renewals, replacements, additions and
improvements in connection therewith which are needful or desirable to such end. Borrower shall comply or take all
necessary steps to comply with all
laws, ordinances, rules and regulations, including, without limitation, all
those applicable to zoning, environmental and energy-related laws and
regulations, made or promulgated by any government, municipality or agency
which are now or may hereafter become applicable to the Leasehold Premises. Borrower shall not construct any additional building
or buildings or make any other improvements, other than tenant finish
work and non-structural renovations, on the Leasehold Premises, nor alter
(other than tenant finish work), remove or demolish any Improvements in violation of the Declaration. Borrower shall not change
the existing use of the Leasehold Premises or any portion thereof in
violation of the Declaration, nor will Borrower initiate, join in or consent to
any change in any private restrictive covenant, zoning ordinance or other public
or private restrictions, limiting or defining the uses which may be made of the
Leasehold Premises or any portion thereof in violation of the Declaration.
Lender hereby agrees that Borrower’s compliance with the terms of the First
Mortgage and the Declaration regarding use and prohibition against waste shall
be deemed compliance with this Section 1.12(d).

 

(e)                                   Legal
Proceedings.  Whether or not an Event of
Default has occurred and exists, Lender
shall have the right, but not the duty or obligation, to intervene or otherwise
participate in, prosecute or defend at any legal or equitable proceedings
(including, without limitation, any eminent domain proceedings) which,
in Lender’s reasonable discretion, affect the Mortgaged Property, the Leases (hereinafter defined) or any of the rights created
hereunder the reasonable cost of which, to the extent such proceedings
involve enforcement by the holder of the First Mortgage of its remedies under the First Mortgage, shall be reimbursed
by Borrower to Lender and shall be secured by this Mortgage.

 

SECTION 1.13.             Condemnation.  Borrower,
immediately upon obtaining knowledge of the institution or pending institution
of any proceedings for the condemnation of the Leasehold Premises or any portion thereof, will notify Lender thereof.
Lender may participate in any such proceedings and may be represented therein
by counsel of its selection. Borrower from time to time will deliver to
Lender all instruments requested by it to permit or facilitate such participation. Subject to the terms of the Ground
Lease and the First Mortgage, in the event of such condemnation
proceedings, the award or compensation payable is hereby assigned to and shall
be paid to Lender. Lender shall be under no obligation to question the amount
of any such award or compensation and may accept the same in the amount in
which the same shall be paid. Subject to the Ground Lease, the First Mortgage
and the Declaration, the proceeds of any award

 

13

 

or
compensation so received shall, except for a temporary taking the award of
compensation for which shall be paid over to
Borrower, at the option of Lender, either be applied without prepayment premium, in the absence of an Event of
Default, to the prepayment of the Note at the rate of interest provided
therein, regardless of the rate of interest payable on the award by the condemning authority, or be paid over to Borrower
from time to time for expenses incurred by it in the restoration of the
Improvements and upon terms otherwise satisfactory to Lender in Lender’s sole discretion.

 

SECTION 1.14.             Leases.

 

(a)                  Assignment.  Borrower
hereby absolutely and unconditionally assigns and transfers to Lender all leases now existing
or hereafter entered into for all or any portion of the Mortgaged Property
(hereinafter called a “Lease”)the Leases and all rents, income issues or
profits derived therefrom (hereinafter
called the “Property Income”). Borrower shall not otherwise
assign, transfer or encumber in any manner the Leases or the Property Income or
any portion thereof, except as permitted
pursuant to the First Mortgage. Borrower shall have a license to collect
and use the Property Income as the same becomes due and payable and to exercise
its rights as landlord under the Leases consistent with the provisions hereof,
so long as no Event of Default has occurred and is continuing, which license is
revocable by Lender upon the occurrence and during the continuance of an Event
of Default, but may not collect any Property Income more than 30 days in
advance of the date the same becomes due (other than security deposits and the first month’s rent). The assignment in this
Section 1.14 shall constitute an absolute and present assignment of the
Leases and the Property Income, and not an assignment for security, and the
existence or exercise of the Borrower’s conditional license to collect Property
Income shall not operate to subordinate this assignment to any subsequent assignment. The exercise by Lender of any of its
rights or remedies under this Section 1.14 shall not be deemed or construed to
make Lender a Lender-in-possession.

 

(b)                  Restrictions on Leasing.  Except as
permitted under the Declaration, Borrower will not enter into new Lease(s) or alter or
modify the terms of the Lease(s), give any consent or exercise any option, accept a surrender
thereof, or consent to any assignment of or subletting under the Lease(s).
Borrower shall not take any action referred to in this Section 1.14(b) unless
the consent of the holder of the First Mortgage to such action shall have been
obtained if and to the extent required under the First Mortgage. Lender shall
have all the rights against tenants of the
Mortgaged Property as set forth in Section 291-f of the Real Property Law of
the State of New York, and reference
to said Section 291-f is hereby made.

 

(c)                  Rent
Roll.  Borrower
shall furnish to Lender, but, so long as no Event of Default has occurred and is continuing, not more than
twice per calendar year and within ten (10) days after a request by Lender, a certified written statement containing the
names of all lessees on the Mortgaged Property, the terms of their
respective Leases, the space occupied and the rentals payable thereunder.

 

 

14

 

(d)                  Tenant Estoppel Certificates.  If any of
the Leases provide for the giving by the lessee thereunder of certificates with respect to
the status of such Leases, Borrower shall exercise its right to request such certificates within
ten (10) days of any demand therefor by Lender, provided, however, that Lender
shall not make such demand more than once in any Loan Year.

 

(e)                   Copies of Leases.  Borrower,
within ten (10) days upon request, which request shall not be made more than once annually, will
furnish true copies of all Leases not previously provided to Lender, subleases and other occupancy agreements, including
amendments and renewals thereof and guaranties given in connection therewith.

 

SECTION 1.15.             Subordination
and Attornment.  Each Lease shall be subordinate to the lien of
this Mortgage, to all advances hereunder and to any renewals, extensions,
modifications or consolidations thereof, and shall provide that, in the event
of the enforcement by Lender of the remedies provided for by law or by this
Mortgage, the lessee thereunder will, upon request of any person succeeding to
the interest of Borrower as a result of such enforcement, automatically become
the lessee of and shall attorn to said successor in interest, without change in
the terms or other provisions of such Lease; provided, however, that said
successor in interest shall not be bound by (i) any payment of rent or
additional rent for more than one (1) month
in advance, except prepayments in the nature of security for the performance by
said lessee of its obligations under said Lease, or (ii) any amendment or
modification of the Lease made without the consent of Lender or such successor
in interest, unless such consent is not
required by Section 1.14 hereof. Each Lease shall also provide that, upon request
by said successor in interest, such lessee shall execute and deliver an
instrument or instruments confirming such
Attornment. Lender shall execute and deliver a Subordination, Non-disturbance and
Attornment Agreement (each, an “SNDA”) to each tenant to which the
holder of the First Mortgage delivers an SNDA in substantially the same form as
is delivered by the holder of the First
Mortgage to such tenants.

 

SECTION 1.16.             Lien Law.  Pursuant to Section 13 of the Lien Law of New York, Borrower
will receive the advances secured by this Mortgage and will hold the right to
receive such advances as a trust fund to be
applied first for the purpose of paying the costs of completing the
Improvements and will apply the same first to the payment of such costs before
using any part of the total of the same for
any other purpose. Borrower will indemnify and hold Lender harmless
against any loss or liability, cost or expense, including, without limitation,
any judgments, attorneys’ fees, costs of appeal bonds and printing costs,
arising out of or relating to any
proceeding instituted by any claimant alleging a violation by Borrower of any
applicable lien law.

 

SECTION 1.17.             Borrower Estoppel Certificate.  Borrower,
within ten (10) days upon
request and not more than twice per calendar year or any greater number of
times an estoppel certificate is required
to be provided to the holder of the First Mortgage, will furnish a

 

15

 

written statement, duly acknowledged, stating (i) the amount due,
whether for principal or interest, on the
Note, (ii) whether or not this Mortgage has been modified in any respect, and
if so, specifying any such modification, and (iii) whether any offsets,
counterclaims or defenses exist against the
indebtedness secured by this Mortgage, and if so, specifying any such offsets,
counterclaims or defenses.

 

SECTION 1.18.             (a) Ground Lease in Force.  The
Ground Lease is in full force and effect and, to the best of Borrower’s
knowledge, neither landlord nor tenant is in default thereunder.   The Ground Lease has not been further
amended nor modified and the instruments recited herein as constituting the
Ground Lease constitute the full agreement of the parties with respect to the subject matter therein set forth.
Borrower has not paid rent in advance for a period in excess of one
month, nor is it in arrears. All of Landlord’s work to be performed thereunder has been fully completed. The copies of the Ground
Lease furnished to Lender are true and complete.

 

(b)        Lawfully Executed.  This
Mortgage is lawfully executed in conformity with the Ground Lease.

 

(c)        Borrower to Perform.  Borrower
will promptly perform and observe all of the terms, covenants and conditions required to be performed and observed
by the Borrower as Tenant under the Ground
Lease, before the expiration of any applicable grace or cure periods set forth
in the Ground Lease, and will do all things necessary to preserve and to keep
unimpaired its rights under the Ground Lease.

 

(d)        Default Notice.  Borrower will promptly notify
Lender in writing of receipt by Borrower of
notice from the landlord under the Ground Lease noting or claiming any default
by Borrower in the performance or observance of any of the terms, covenants, or
conditions on the part of the Borrower to be performed or observed under
the Ground Lease.

 

(e)        Other Notices.  Borrower will (i) promptly
notify Lender in writing of the receipt by Borrower of any notice from the
landlord to Borrower of termination of the Ground Lease pursuant to the provisions of the Ground Lease; and (ii) promptly
cause a copy of any such notice received by Borrower from landlord to be
delivered to the Lender.

 

(f)         No Termination.  Borrower will not, without the
prior written consent of Lender, terminate,
modify, or surrender or suffer or permit any termination, modification or
surrender of the Ground Lease.

 

(g)      Landlord Certificate.  Borrower
will, within ten (10) business days after written demand from Lender, request
and thereafter use its best efforts to obtain from the landlord under the Ground Lease and deliver to Lender (not more often
than three (3) times in any twelve month period) certificates (a) certifying
that (i) such Ground Lease is in full force

 

 

16

 

and effect, is unmodified (or if there have been
modifications, stating the modifications), and (ii) date to which each item of Charges (as
defined in the Ground Lease) payable by the Tenant thereunder to the Landlord
has been the paid and (b) stating (i) whether to the best knowledge of Landlord
thereunder, an Event of Default (as defined in the Ground Lease) or any event
that, with the giving of notice or the passage of time, or both, would
constitute an Event of Default, has occurred, and (ii) whether to the best
knowledge of the Landlord thereunder a Default (as defined in the Ground Lease)
has occurred in the Tenant’s performance of any covenant, agreement, obligation or condition contained in
the Ground Lease, and if so, specifying in detail, each such Default or
Event of Default.

 

(h)     Proof
of Payment.  Borrower will furnish to the Lender, upon demand,
proof of
payment of all items which are required to be paid pursuant to the Ground Lease
and proof of payment of which is
required to be given.

 

(i)       Waiver
of Modification.  Borrower shall not consent to any modification
or cancellation of the
Ground Lease.

 

(j)       Curing Defaults.  Borrower
shall execute and deliver, on request of Lender, such instruments as Lender may deem useful or required to permit Lender
to cure any default under the Ground Lease or permit Lender to take such
other action as the Lender considers desirable to cure or remedy the matter in
default and preserve the interest of Lender in the Mortgaged Property.

 

(k)      No
Subordination.  Borrower shall not in any manner make the
leasehold estate subject
to the lien of any other mortgage, other than the First Mortgage, whether or
not constituting as well a mortgage on the
fee title in and to the Mortgaged Property. The grant of any such mortgage lien shall not be effective as
against the Lender in addition to constituting an Event of Default hereunder.

 

ARTICLE II

EVENTS OF DEFAULT AND
REMEDIES

 

SECTION 2.01.             Events
of Default. If one or more of the following Events of Default shall happen:

 

(a)           Nonpayment. If (i) default
shall be made in the payment of any principal, interest or other sums due under the Note, in any such case, when and as the
same shall become due and payable, whether at maturity or by
acceleration or as part of any payment or permitted prepayment or otherwise, in
each case, as in the Note and this Mortgage provided, and any such default set
forth in this clause (i) shall not be cured within ten (10) days (the “10-Day
Cure Period”) after delivery of written notice by Lender to Borrower
(the “10-Day Notice”), and which

 

17

 

default, solely in the case
of the first default in the payment of principal, interest or other sums due
under the Note as to which Lender has delivered the 10-Day Notice, continues
after the expiration of the 10-Day Cure
Period for a further period of five (5) days after delivery of written notice
by Lender to Borrower (the “5-Day Notice”), it being acknowledged and
agreed that with respect to the second and any subsequent occasion on which
Lender delivers a 10-Day Notice, Lender
shall not be required to and shall not deliver a 5-Day Notice, or (ii) default
shall be made in the payment of any tax required by Section 1.07 hereof
or insurance premiums required by Section 1.09 hereof to be paid and the same
shall not be cured within ten (10) days after written notice of such default
from Lender to Borrower, or (iii) default shall be made in providing to Lender
the annual financial statement required by Section 1.12(b) or rent roll
provided by Section 1.12(c) hereinbefore
set forth, and such default has not been cured within thirty (30) days after
written notice of such default from Lender to Borrower; or

 

(b)                                   Misrepresentation.  If any material representation or warranty
of Borrower made in this
Mortgage, or in any certificate, report, financial statement or other
instrument given or furnished in connection with the making of the Note or this
Mortgage, shall prove materially false or misleading at the time such representation
or warranty was given; or

 

(c)    Other Defaults.  If
default shall be made in the due observance or performance of any other covenant, condition or agreement in the
Note, this Mortgage or in any other document executed or delivered to Lender in connection with the loan secured by
this Mortgage or the First Mortgage
and such default has not been cured within thirty (30) days after written
notice of such default from Lender to Borrower, provided, however, that if such
default is not capable of cure within such thirty (30) day period, such
period in which to cure may be extended by the amount of time required to effect a cure on condition that Borrower promptly
commences to cure and diligently and uninterruptedly pursues such cure to
completion; or

 

(d)                                   Liquidation
or Receivership.  If by order of a court of
competent jurisdiction, a trustee, receiver
or liquidator of the Mortgaged Property or any part thereof, or of Borrower
shall be appointed; or

 

(e)                                    Voluntary
Bankruptcy.  If Borrower shall file a petition
in bankruptcy or for an arrangement or for
reorganization pursuant to the Federal Bankruptcy Act or any similar law,
federal or state, or if, by decree of a court of competent jurisdiction,
Borrower shall be adjudicated a bankrupt, or be declared insolvent, or shall
make an assignment for the benefit of creditors,
or shall admit in writing its inability to pay its debts generally as they
become due, or shall consent to the
appointment of a receiver or receivers of all or any part of its property; or

 

(f)                                       Involuntary Bankruptcy.  If any of
the creditors of Borrower shall file a petition in bankruptcy against Borrower
or for reorganization of Borrower pursuant to the Federal Bankruptcy Act or any
similar law, federal or state, and if such petition shall not be discharged or
dismissed within ninety (90) days after the date on which such petition was
filed; or

 

 

18

 

(g)           Intentionally Omitted.

 

(h)           Illegal Taxes.  If
it shall be illegal for Borrower to pay any tax referred to in Section 1.08 hereof or
if the payment of such tax by Borrower would result in the violation of applicable usury laws; or

 

(i)            Other
Mortgages.  Except as herein otherwise provided to the
contrary, if there should
occur a default which is not cured within the applicable grace period, if any,
under any other mortgage encumbering all or part of the Mortgaged Property
regardless of whether any such other
mortgage is prior or subordinate to this Mortgage; it being further agreed by
Borrower that an Event of Default under this Mortgage shall constitute an Event
of Default under any such other mortgage in respect of the Mortgaged
Property held by Lender; or

 

(j)            Transfer of Mortgaged
Property.  If Borrower shall transfer, or agree to transfer, in any
manner, either voluntarily or involuntarily, by operation of law or otherwise,
all or any portion of the Mortgaged Property, or any interest therein
(including, without limitation, any air or
development rights) without, in any such case, the prior written consent of
Lender. Lender may grant or deny such consent in its sole discretion
and, if consent should be given, any such transfer shall be subject to this
Mortgage and any other documents which evidence or secure the loan secured by
this Mortgage, and any such transferee shall assume all of Borrower’s
obligations under this Mortgage and thereunder and agree to be bound by all
provisions and perform all obligations
contained in this Mortgage and therein. Consent to one such transfer shall
not be deemed to be a waiver of the right to require consent to future or
successive transfers. As used in this Section 2.01(j), “transfer” shall
include, without limitation, (i) any sale, assignment, lease or conveyance of
the Mortgaged Property or any part thereof, or any interest therein except
permitted leases for occupancy subordinate to this Mortgage; (ii) if the
Borrower should at any time be a
partnership, the sale, assignment or conveyance of any general or limited partnership
interest in Borrower or in any general partner of Borrower; (iii) if the
Borrower should at any time be a corporation, any sale, assignment or
conveyance of the voting stock thereof or a substantial portion of its assets
other than shares of stock appurtenant to proprietary leases; and (iv) if the Borrower should at any time be a trust, the
assignment or conveyance of all or any part of the beneficial interest
therein or a substantial portion of its assets; and (v) if the Borrower should
at any time be or include a limited liability company, the assignment or
conveyance of all or any part of the shares of beneficial interest therein, or
management thereof, or a substantial portion
of its assets. Notwithstanding the foregoing, the Mortgaged Property and/or equity interests in Mortgagor may be
transferred (a) to Lender or a designee of Lender, or (b) upon not less
than fifteen (15) days prior written notice to Lender, to (i) to an Affiliate
of Forest City Enterprises, Inc. or Bruce C. Ratner, (ii) to a Family Member of
Bruce C. Ratner, provided Bruce C. Ratner shall retain management control
following such transfer (or, if Bruce C. Ratner shall be incompetent or
deceased, then such Family Member or Family Members of Bruce C. Ratner shall
retain such management control) or (iii) to a trust established for the

 

 

19

 

benefit of Bruce C. Ratner
or his Family Members, or any further transfer to the beneficiaries of such trust, provided Bruce C. Ratner shall retain
management control following such transfer (or, if Bruce C. Ratner shall
be incompetent or deceased, then such Family Member or Family Members of Bruce
C. Ratner shall retain such management control). As used herein (i) “Family
Members” shall mean, as to any individual, any parent, spouse, sibling, child,
grandchild, aunt, uncle, niece, nephew or cousin, or any step-child or
step-grandchild of such individual, and (ii) “management control” shall mean
the ability to control management affairs and day-to-day operations (the
foregoing restrictions are, however, not applicable to any transfers permitted under that certain Recognition Agreement
dated                , 2001 among ING Vastgoed B B.V., FC 41st Street Associates, LLC, the
Company, NYTC Member, FC Member, Developer, The New York Times Company
and INGREDUS Site 8 South LLC); or

 

(k)           Intentionally
Omitted.

 

(1)           Cross-Default.  If
there should occur a default which is not cured within the applicable grace
period, if any, under any of the terms, covenants or conditions of any other
document or instrument executed in connection with this Mortgage, including,
without limitation, any other mortgage encumbering all or part of the Mortgaged
Property held by Lender, or any other prior mortgages or upon default in the
performance of any covenant, agreement,
term or condition, which is not cured within the applicable grace period, if
any, under the notes evidencing such mortgages such event shall
constitute a default under this Mortgage, notwithstanding
that the owner of the premises described in said other mortgage may be
different than the owner of the Mortgaged Property or that the title to such
other premises covered by said other mortgage or mortgages be vested in
whole or in part in a person or persons other than Borrower;

 

(m)          Hazardous
Materials Violation.  If a court or other forum of
competent jurisdiction
shall impose a lien on the Mortgaged Property arising out of or based upon the presence of any Hazardous Materials (as such term
is defined in Section 3.14 hereof) on the Mortgaged Property and Borrower fails
to pay such judgment or discharge or bond such lien within thirty (30)
days of the imposition thereof; or

 

(n)           Ground Lease.  If
there shall occur a default by Borrower beyond any applicable grace or cure
periods under the Ground Lease;

 

then and in every such case:

 

I.                Lender may declare
the entire principal of the Note then outstanding (if not then due and
payable), and all accrued and unpaid interest thereon, to be due and payable immediately, and upon any such declaration, (i)
all accrued and unpaid interest due under the Note, (ii) the outstanding
principal of the Note, (iii) any prepayment premium due under the Note, if any, and (iv) any and all other charges
required to be paid by Borrower pursuant to any

 

20

 

provision of this Mortgage, the Note or any other
document securing the Note shall become and be immediately due and
payable, anything in the Note or in this Mortgage to the contrary notwithstanding; and

 

II.            Lender personally, or by its agents
or attorneys, may enter into and upon all or any part of the Mortgaged
Property, and each and every part thereof, and is hereby given a right and
license and appointed Borrower’s attorney-in-fact to do so, and may exclude
Borrower, its agents and servants, wholly therefrom; and having and holding the
same, may use, operate, manage and control the Mortgaged Property and conduct
the business thereof either personally or
by its superintendents, managers, agents, servants, attorneys or receivers; and
upon every such entry, Lender, at the expense of the Mortgaged Property,
from time to time, either by purchase, repairs or construction, may maintain
and restore the Mortgaged Property, whereof it shall become possessed as aforesaid; and likewise, from time to time, at the
expense of the Mortgaged Property, Lender may make all necessary or
proper repairs, renewals and replacements and such alterations, additions,
betterments and improvements thereto and thereon as to it may seem advisable;
and in every such case Lender shall have the right to manage and operate the
Mortgaged Property and to carry on the business thereof and exercise all rights
and powers of Borrower with respect thereto either in the name of Borrower or
otherwise as it shall deem best; and Lender
shall be entitled to collect and receive all earnings, revenues, rents, issues,
profits and income of the Mortgaged Property and every part thereof, all
of which shall for all purposes constitute property of Borrower; and in
furtherance of such right, Lender may collect the rents payable under all Leases directly from the lessees thereunder upon
notice to each such lessee that an Event of Default exists under this
Mortgage accompanied by a demand on such lessee for the payment to Lender of
all rents due and to become due under its Lease, and Borrower, for the benefit
of Lender and each such lessee, hereby covenants and agrees that the lessee
shall be under no duty to question the accuracy of Lender’s statement of
default and shall unequivocally be authorized
to pay said rents to Lender without regard to the truth of Lender’s statement
of default and notwithstanding notices from Borrower disputing the
existence of an Event of Default such that the payment of rent by the lessee to
Lender pursuant to such a demand shall constitute performance in full of the
lessee’s obligation under the Lease for the payment of rents by the lessee to
Borrower; and after deducting the expenses of conducting the business thereof
and of all maintenance, repairs, renewals, replacements, alterations,
additions, betterments, and improvements and amounts necessary to pay for
taxes, assessments, insurance and prior or other proper charges upon the
Mortgaged Property or any part thereof, as well as just and reasonable
compensation for the services of Lender and for all attorneys, counsel, agents,
clerks, servants and other employees by it engaged and employed, Lender shall
apply the moneys arising as aforesaid, first, to the payment of (i) any and all
charges required to be paid by Borrower pursuant to any provision of this
Mortgage, the Note or any other document securing the Note, (ii) any prepayment
premium due under the Note, if any, (iii) all accrued and unpaid interest due
under the Note, and (iv) the outstanding principal of the Note, when and as the
same shall become payable; and

 

21

 

III.                   Lender may, either with or without entry or
taking possession of the Mortgaged Property as provided in this Mortgage or
otherwise, personally or by its agents or attorneys, and without prejudice to
the right to bring an action for foreclosure of this Mortgage, sell the
Mortgaged Property or any part thereof pursuant to any procedures provided by
applicable law, including, without limitation, the procedures set forth in
Article 14 of the New York Real Property
Actions and Proceedings Law (and any amendments or substitute statutes in regard
thereto), and all estate, right, title, interest, claim and demand therein, and
right of redemption thereof, at one or more sales as an entity or in parcels,
and at such time and place upon such terms
and after such notice thereof as may be required or permitted by applicable
law.

 

IV.                  Notwithstanding and in addition to the
provisions of Section III hereinabove set
forth, Lender, with or without entry personally or by its agents or attorneys,
insofar as applicable, may:

 

(1)                   institute proceedings
for the complete or partial foreclosure of this Mortgage; or

 

(2)                   take such steps to protect and enforce its
rights whether by action, suit or proceeding in equity or at law for the
specific performance of any covenant, condition or agreement in the Note or in this Mortgage, or in aid of the execution
of any power granted in this Mortgage, or for any foreclosure under this
Mortgage, or for the enforcement of any other appropriate
legal or equitable remedy or otherwise as Lender may elect.

 

SECTION 2.02.             Sale by Lender.

 

(a)                    Time and Place of Sale.  Lender may adjourn from time to time any sale by it to be
made under or by virtue of this Mortgage by announcement at the time and place
appointed for such sale or for such
adjourned sale or sales, and, except as otherwise provided by applicable provision
of law, Lender, without further notice or publication, may make such sale at
the time and place to which the same shall
be so adjourned.

 

(b)                   Transfer of Mortgaged Property; Borrower Ratification.  Upon the
completion of any sale or sales made by Lender under or by virtue of this Article II,
Lender, or an officer of any court
empowered to do so, shall execute and deliver to the accepted purchaser or
purchasers a good and sufficient instrument
or instruments conveying, assigning and transferring all estate, right, title
and interest in and to the property and rights sold. Lender is hereby appointed
the true and lawful attorney irrevocable of Borrower, in its name and
stead, to make all necessary conveyances,
assignments, transfers and deliveries of the Mortgaged Property and rights so
sold and for that purpose, Lender may execute all necessary instruments
of conveyance, assignment and transfer, and
may substitute one or more persons with like power, Borrower hereby ratifying and
confirming all that its said attorney or such substitute or substitutes shall
lawfully do so by virtue hereof. Nevertheless, Borrower, if requested by
Lender, shall ratify and confirm any such

 

 

22

 

sale or
sales by executing and delivering to Lender or to such purchaser or purchasers
all such instruments as
may be advisable, in the judgment of Lender, for the purpose, and as may be designated in such request. Any such sale or sales
made under or by virtue of this Article II, whether made under the power
of sale herein granted or under or by virtue of judicial proceedings or of a
judgment or decree of foreclosure and sale, shall operate to divest all the estate, right, title, interest, claim and demand
whatsoever, whether at law or in equity, of Borrower in and to the properties and rights so sold, and shall be a perpetual
bar both at law and in equity against Borrower and against any and all persons
claiming or who may claim the same, or any part thereof from, through or
under Borrower.

 

(c)                    Note Due on Sale.  In the
event of any sale or sales made under or by virtue of this Article II (whether made under the power
of sale herein granted or under or by virtue of judicial proceedings or of a judgment or decree of foreclosure and
sale), the entire principal of, and interest on, the Note, if not
previously due and payable, and all other sums, including the prepayment premium, if any, required to be paid
by Borrower pursuant to this Mortgage or the Note, immediately thereupon
shall, anything in the Note or in this Mortgage to the contrary notwithstanding, become due and payable.

 

(d)                   Application of Sale Proceeds.  The purchase money, proceeds or
avails of any sale or sales made under or by virtue of this Article II, together with
any other sums which then may be
held by Lender under this Mortgage, whether under the provisions of this
Article II or otherwise, shall be applied as follows:

 

First: To the payment of
the costs and expenses of such sale, including reasonable compensation to Lender, its agents and
counsel, and of any judicial proceedings wherein the same may be made, and of all reasonable expenses, liabilities and
advances made or incurred by Lender under this Mortgage, together with interest
at the Involuntary Rate on all advances made by Lender, and of all taxes,
assessments or other charges, except any taxes, assessments or other charges
subject to which the Mortgaged Property shall have been sold.

 

Second: To the payment
of any other sums required to be paid by Borrower pursuant to any provision of this Mortgage or of the Note
or any other documents securing the Note, including
any prepayment premium due under the Note, if any.

 

Third: To the payment
of the whole amount then due, owing or unpaid upon the Note for interest and
principal, with interest on the unpaid principal at the Involuntary Rate from
and after the happening of any Event of Default described in Section 2.01
hereof from the due date of any such payment of principal until the same is
paid.

 

Fourth: To the payment
of the surplus, if any, to whomsoever may be lawfully entitled to receive the same.

 

 

23

 

(e)           Acquisition of Mortgaged
Property by Lender.  Upon any sale or sales made under or by
virtue of this Article II, whether made under the power of sale herein granted
or under or by virtue of judicial proceedings or of a judgment or decree of
foreclosure and sale, Lender may bid for
and acquire the Mortgaged Property or any part thereof and in lieu of paying cash
thereunder may make settlement for the purchase price by crediting upon the
indebtedness secured by this Mortgage the
net sales price after deducting therefrom the reasonable expenses of the
sale and the costs of the action and any other sums which Lender is authorized
to deduct under this Mortgage.

 

SECTION 2.03.             Borrower’s Liability.

 

(a)                  Accelerated Payment.  In case an Event of Default shall have
occurred and be continuing,
then, upon written demand of Lender, Borrower will pay to Lender the whole amount which then shall have become due and
payable upon the Note, for principal or interest or both, as the case may be,
and will also pay to Lender interest at the Involuntary Rate on the then unpaid
principal of the Note, and the sums required to be paid by Borrower pursuant to
any provision of this Mortgage, and, in
addition thereto, such further amount as shall be sufficient to cover
the costs and reasonable expenses of collection, including reasonable
compensation to Lender, its agents and counsel and any reasonable expenses
incurred by Lender hereunder. In the event Borrower shall fail forthwith to pay
such amounts upon such demand, Lender shall be entitled and empowered to
institute such action or proceedings at law or in equity as may be advised by
its counsel for the collection of the sums so due and unpaid, and may prosecute
any such action or proceedings to judgment or final decree, and may enforce any
such judgment or final decree against Borrower and collect, out of the property
of Borrower wherever situated, as well as out of the Mortgaged Property, in any
manner provided by law, moneys adjudged or decreed
to be payable.

 

(b)                  Accelerated Judgment.  Lender shall be entitled to recover judgment
as aforesaid either before,
after or during the pendency of any proceedings for the enforcement of the
provisions of this Mortgage; and the right of Lender to recover such judgment
shall not be affected by any entry or sale hereunder, or by the exercise of any
other right, power or remedy for the enforcement of the provisions of this
Mortgage, or the foreclosure of the lien hereof; and in the event of a sale of the Mortgaged Property, and of the
application of the proceeds of sale, as in this Mortgage provided, to
the payment of the Debt, Lender shall be entitled to enforce payment of, and to
receive all amounts then remaining due and unpaid upon, the Note, and to
enforce payment of all other charges, payments and costs due under this
Mortgage, and shall be entitled to recover judgment for any portion of the Debt
remaining unpaid, with interest at the Involuntary Rate. In case of proceedings
against Borrower in insolvency or bankruptcy or any proceedings for its
reorganization or involving the liquidation of its assets, then Lender shall be
entitled to prove the whole amount of
principal and interest due upon the Note to the full amount thereof, and all
other payments, charges and costs, including the prepayment premium due under
this Mortgage and the Note, without deducting therefrom any proceeds obtained
from the sale of

 

 

24

 

the whole or any part of the Mortgaged Property;
provided, however, that in no case shall Lender receive a greater amount than such principal
and interest and such other payments, charges and costs from the aggregate
amount of the proceeds of the sale of the Mortgaged Property and the
distribution from the estate of Borrower.

 

(c)                   Non-Limitation
of Lender’s Rights.  No recovery of any judgment by
Lender and no levy of an execution under any judgment upon the Mortgaged
Property or upon any other property of
Borrower shall affect in any manner or to any extent, the lien of this Mortgage
upon the Mortgaged Property or any part thereof, or any liens, rights,
powers or remedies of Lender hereunder, but such liens, rights, powers and
remedies of Lender shall continue unimpaired as before.

 

(d)                  Application of Judgment Proceeds.  Any moneys
thus collected by Lender under this Section shall be applied by Lender in accordance
with the provisions of clause (d) of Section  2.02 hereof.

 

SECTION 2.04.             Receiver.  During the existence of any Event of Default and immediately
upon the commencement of any action, suit or other legal proceedings by Lender pursuant to any provision of this Mortgage, or of
any other nature in aid of the enforcement of the Note or of this
Mortgage, Borrower will if required by Lender, consent to the appointment of a
receiver or receivers of the Mortgaged Property and of all the earnings,
revenues, rents, issues, profits and income thereof. During the existence of
any Event of Default, or upon, or at any time after,
the commencement of any proceedings to foreclose this Mortgage or to enforce
the specific performance hereof or in aid thereof or upon, or at any
time after, the commencement of any other
judicial proceeding to enforce any right of Lender, Lender shall be entitled, as
a matter of right, if it shall so elect, without the giving of notice to
any other party and without regard to the adequacy
or inadequacy of any security for the indebtedness secured by this Mortgage,
forthwith either before or after declaring the unpaid principal of the
Note to be due and payable, to the appointment
of such a receiver or receivers. Such appointment may be made either before or after any foreclosure sale without regard to the
solvency or insolvency of Borrower at the time of application for such receiver
and without regard to the then value of the Mortgaged Property and Lender may be appointed as such receiver. Such
receiver shall have power: (a) to collect the rents, issues and profits
of the Mortgaged Property and, in case of a foreclosure sale and a deficiency, during the full statutory period of
redemption, whether there be redemption or not, as well as during any
further times when Borrower, except for the intervention of such receiver,
would be entitled to collect such rents, issues and profits, (b) to extend or
modify any then existing Leases and to make new Leases, which extensions,
modifications and new Leases may provide for terms to expire, or for options to
lessees to extend or renew terms to expire, beyond the maturity date of the
indebtedness secured by this Mortgage and beyond the date of the issuance of a deed or deeds to a purchaser or
purchasers at a foreclosure sale, it being understood and agreed that any such
Leases, and the options or other such provisions to be contained therein, shall
be binding upon Borrower and all persons whose interests in the Mortgaged
Property are

 

 

25

 

subject to the lien hereof
and upon the purchaser or purchasers at any foreclosure sale, notwithstanding
any redemption from sale, discharge of the indebtedness secured hereby,
satisfaction of any foreclosure decree, or issuance of any certificate of sale
or deed to any purchaser, and (c) all other powers which may be necessary or
are usual in such cases for the protection,
possession, control, management and operation of the Mortgaged Property during
the whole of said period. The court
from time to time may authorize the receiver to apply the net income in
his hands in payment in whole or in part of: (a) the indebtedness secured by
this Mortgage, or by any decree foreclosing this Mortgage, or any tax, special
assessment or other lien which may be or become superior to the lien hereof or
of such decree, provided such application is made prior to foreclosure sale,
and (b) all rents due or which may become due under
the Ground Lease.

 

SECTION 2.05.               Lender
Control.  Notwithstanding the appointment of any receiver, liquidator or trustee of Borrower, of any of its
property, or of the Mortgaged Property or any part thereof, Lender shall be
entitled to retain possession and control of all property now or hereafter held
under this Mortgage.

 

SECTION 2.06.             Non-Waiver.  No remedy conferred upon or reserved to Lender in this
Mortgage is intended to be exclusive of any other remedy or remedies, and each
and every such remedy shall be cumulative,
and shall be in addition to every other remedy given hereunder or now or
hereafter existing at law or in equity or by statute. No delay or omission of
Lender to exercise any right or power accruing upon any Event of Default shall
impair any such right or power, or shall be construed to be a waiver of any
such Event of Default or any acquiescence therein; and every power and remedy
given by this Mortgage to Lender may be exercised from time to time as often as may be deemed expedient by Lender and as
permitted by this Mortgage. Nothing in this Mortgage or in the Note
shall affect the obligation of Borrower to pay the principal of, and interest
on, the Note in the manner and at the time and place therein respectively expressed.

 

SECTION 2.07.             Waiver of Right of Redemption.  Borrower will not at any time insist
upon, or plead, or in any manner whatever claim or take any benefit or
advantage of any stay or extension or moratorium law, any exemption from
execution or sale of the Mortgaged Property
or any part thereof, wherever enacted, now or at any time hereafter in force,
which may affect the covenants and terms of performance of this
Mortgage, nor claim, take or insist upon any benefit or advantage of any law
now or hereafter in force providing for the valuation or appraisal of the Mortgaged Property, or any part
thereof, prior to any sale or sales thereof which may be made pursuant
to any provision herein, or pursuant to the decree, judgment or order of any court of competent jurisdiction; nor, after
any such sale or sales, claim or exercise any right under any statute
heretofore or hereafter enacted to redeem the property so sold or any part
thereof, and Borrower hereby expressly waives all benefit or advantage of any
such law or laws, and covenants not to hinder, delay or impede the execution of
any power herein granted or delegated to
Lender, but to suffer and permit the execution of every power as though no such
law

 

26

 

or laws had been made or enacted. Borrower, for itself and all who may
claim under it, waives, to the extent that
it lawfully may, all right to have the Mortgaged Property marshaled upon any
foreclosure hereof.

 

SECTION 2.08.             Use and Occupancy Fee; Surrender of Premises.  During the existence of any
Event of Default and pending the exercise by Lender of its right to exclude
Borrower from all or any part of the Mortgaged Property, Borrower agrees to pay
the fair and reasonable rental value for the actual use and occupancy of the
Mortgaged Property or any portion thereof which are in its possession for such
period and, upon default of any such payment, will vacate and surrender
possession of the Mortgaged Property to Lender or to a receiver, if any, and in
default thereof may be evicted by any summary action or proceeding for the
recovery or possession of premises for non-payment of rent, however designated.

 

SECTION 2.09.               Payment of Lender’s Expenses.  In any suit to foreclose the lien hereof
(including any partial foreclosure) or to enforce any other remedy of Lender
under this Mortgage or the Note, there shall be allowed and included as
additional indebtedness in the decree for
sale or other judgment or decree all reasonable expenditures and reasonable
expenses which may be paid or incurred by or on behalf of Lender for
attorneys’ fees, appraiser’s fees, outlays for documentary and expert evidence,
stenographer’s charges, publication costs, and costs (which may be estimated as to items to be expended after entry of
the decree) of procuring all such abstracts of title, title searches and
examinations, title insurance policies, Torrens certificates, and similar data and assurances with respect to title and
value as Lender may deem necessary either to prosecute such suit or to
evidence to bidders at any sale which may be had pursuant to such decree the true condition of the title to or the value
of the Mortgaged Property.

 

SECTION 2.10.             Lender Right to Cure.  In the event of any default by
Borrower in the performance of or compliance with any of the terms,
covenants, conditions or obligations to be
performed or complied with by Borrower under this Article II, Lender or a
lawfully appointed receiver, at their respective options, after notice and the
expiration of any grace period, upon ten (10) days’ prior written notice
to Borrower stating the nature of the default (or upon shorter notice, or with no notice at all, if necessary to
meet an emergency situation or a governmental or municipal time
limitation), may perform the same, and may enter upon the Mortgaged Property for any of the foregoing purposes, and the cost
thereof shall be paid by Borrower to Lender upon demand and shall be
added to the Debt and secured by the lien of this Mortgage.

 

ARTICLE
III

MISCELLANEOUS

 

SECTION 3.01.             Severability.  In the event any one or more of the provisions contained
in this Mortgage or in the Note shall for any reason be held to be invalid,
illegal or unenforceable in any respect,
such invalidity, illegality, or unenforceability shall not affect any other
provision of this Mortgage, but this Mortgage shall be construed as if such
invalid, illegal

 

 

27

 

or unenforceable provision had never been contained herein
or therein.

 

SECTION 3.02.             Notices.  All notices hereunder shall be in writing and shall be deemed sufficiently
given or served for all purposes when delivered (i) by personal service, and shall be deemed given on
the date when signed for or, if refused, when refused by the person designated
as an agent for receipt of service, or (ii) by nationally recognized overnight
courier service
for next-business day delivery, and shall be deemed given on the next business
day after being
so sent, or (iii) by facsimile transmission and shall be deemed given when
printed confirmation of completion of transmission is generated by the sender’s
facsimile transmission instrument, to any party hereto at its address below
stated.

 

	
  If to
  Lender:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [NYTC Entity]

  
	
   

  	
   

  	
  c/o
  The New York Times Company

  
	
   

  	
   

  	
  229
  West 43rd Street

  
	
   

  	
   

  	
  New
  York, New York 10036

  
	
   

  	
   

  	
  Attention:
  David Thurm

  
	
   

  	
   

  	
   

  
	
  with
  a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  New
  York Times Company

  
	
   

  	
   

  	
  229
  West 43rd Street

  
	
   

  	
   

  	
  New
  York, New York 10036

  
	
   

  	
   

  	
  Attention:

  	
  Solomon
  B. Watson IV, Esq.

  General
  Counsel

  
	
   

  	
   

  	
   

  
	
  with
  a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Swidler
  Berlin Shereff Friedman, LLP

  405
  Lexington Avenue

  New York, New York 10174

  Attention:
  Martin D. Polevoy, Esq.

  
	
   

  	
   

  	
   

  
	
  If to
  Borrower:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FC
  Lion LLC

  
	
   

  	
   

  	
  One
  MetroTech Center North

  Brooklyn,
  New York 11201

  Attention:
  General Counsel

  
	
   

  
	
  with
  a copy to:

  

 

 

28

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Kelley
  Drye & Warren LLP

  101
  Park Avenue

  New York,
  New York 10178

  Attention: James J. Kirk, Esq.

  
	
   

  	
   

  	
   

  
	
  and

  	
   

  	
   

  
	
   

  	
   

  	
  INGREDUS
  Site 8 South LLC

  c/o Clarion Partners

  335 Madison Avenue

  New York, New York  10017

  Attn:
  Mr. Charles Grossman

  Telephone:
  (212) 883-2500

  
	
   

  	
   

  	
   

  
	
  with
  a copy to:

  	
   

  	
  INGREDUS
  Site 8 South LLC

  
	
   

  	
   

  	
  c/o
  Clarion Partners

  601 13th Street, N.W.

  Suite 450 North

  Washington, DC 20005

  Attn: Mr. Martin Standiford

  Telephone: (202) 879-9495

  
	
   

  	
   

  	
   

  
	
  and
  to:

  	
   

  	
  Skadden,
  Arps, Slate, Meagher & Flom LLP

  
	
   

  	
   

  	
  Four
  Times Square

  New
  York, New York 10036

  Attn:
  Benjamin F. Needell, Esq.

  Telephone:
  (212) 735-2600

  

 

or such other address of which a party shall have
notified the party giving such notice in writing as aforesaid. For
purposes hereof, notices may be given by the parties hereto or by their attorneys identified
above.

 

SECTION 3.03.             Successors and Assigns.  All of the grants, covenants, terms, provisions
and conditions of this Mortgage shall run with the land and shall apply to,
bind and inure to the benefit of, the
successors and assigns of Borrower and the successors and assigns of Lender.

 

SECTION 3.04.             Limitations of Law.  That if, from any circumstances
whatever, fulfillment of any
provision of this Mortgage, the Note which it secures or any other instrument securing
or evidencing this loan, shall transcend the limit of validity prescribed by
the usury statute or any other law of the State of New York, then ipso facto
the obligation to be fulfilled

 

 

29

 

shall be reduced to the limit of such validity so that in no event
shall any exaction be possible under this Mortgage, the Note or such other
instrument that is in excess of the limit of such validity, but such obligation shall be fulfilled to the limit of such
validity. And in no event shall the Borrower, heirs, representatives,
successors or assigns, be bound to pay for the use or detention of the money
loaned and secured hereby, or the Lender’s forbearance in collecting same,
interest of more than the maximum rate lawfully collectible in accordance with
the applicable laws of the State of New
York; the right to demand any such excess shall be and is hereby waived.
The provision of this paragraph shall control every other provision of this
Mortgage, the Note which it secures and any other undertaking, agreement or
document evidencing, supporting or securing
this loan.

 

SECTION 3.05.             Counterparts.  This Mortgage may be executed in any
number of counterparts
and each of such counterparts shall for all purposes be deemed to be an
original, and all such counterparts shall together constitute but one and the same
mortgage.

 

SECTION 3.06.               Future
Mortgage Taxes.  In the event of the passage after the date of this Mortgage of any law of the State of New
York deducting from the value of real property for the purpose of taxation any
lien or encumbrance thereon or changing in any way the laws for the taxation of
mortgages or debts secured by mortgages for state or local purposes or the
manner of the collection of any such taxes, and imposing a tax, either
directly or indirectly, on this Mortgage, the Note or the Debt, Borrower shall,
if permitted by law, pay any tax imposed as a result of any such law within the
statutory period or within fifteen (15) days after demand by Lender, whichever is less, provided, however,
that if, in the opinion of the attorneys for Lender, Borrower is not permitted
by law to pay such taxes, Lender shall have the right, at its option, to
declare the Debt due and payable, without prepayment premium, on a date
specified in a prior notice to Borrower of not less than thirty (30) days.

 

SECTION 3.07.             Real Property Law.  All
covenants and conditions contained in this Mortgage,
other than those included in the New York Statutory Short Form of Mortgage,
shall be construed as affording to
Lender rights additional to, and not exclusive of, the rights conferred under
the provisions of Section 254 of the Real Property Law of the State of New
York.

 

SECTION
3.08.             Stamp Tax.  If at
any time the United States of America, any state

thereof or any governmental subdivision of any such
state, shall require revenue or other stamps to be affixed to the Note
or this Mortgage, Borrower will pay for the same, with interest and penalties
thereon, if any.

 

SECTION 3.08.             Cover
Sheet.  The information set forth on the cover of this Mortgage is hereby incorporated herein.

 

SECTION 3.09.             New
York Law.  The terms of this Mortgage shall be construed in accordance with the laws of the State of New
York.

 

30

 

SECTION 3.10.             No Member Liability.  In no event shall any member in
Borrower be liable for any amount outstanding hereunder, but the
foregoing shall not be deemed to limit the
liability of Forest City Enterprises, Inc. under that certain Guaranty executed
and delivered to Lender of even date herewith.

 

SECTION 3.11.             Non-Residential Dwelling.  This Mortgage does not cover real property
principally improved or to be improved by one or more structures containing in
the aggregate not more than six residential
dwelling units, each having their own separate cooking facilities.

 

SECTION 3.12.             Partial Payments.  Borrower hereby acknowledges and agrees that Lender shall
have the right to apply any partial payments made by Lender on account of principal, interest, tax escrow installments or
tax arrears in any manner that Lender, in its sole discretion, shall determine.

 

SECTION 3.13.             Hazardous Materials. 

 

(a)           Representations
and Warranties.  Borrower represents and warrants that:

 

1.                                           To the best of Borrower’s knowledge after due
and diligent inquiry, no Hazardous
Materials have been or are stored, treated, disposed of, buried or incorporated
into the Mortgaged Property, nor has any uncontrolled loss, seepage or
filtration of Hazardous Materials occurred on the Mortgaged Property;

 

2.                                         To the best of
Borrower’s knowledge after due and diligent inquiry, the Leasehold Premises are in compliance with all
applicable statutes and regulations, including environmental, health and safety
requirements;

 

3.                                         To the best of Borrower’s knowledge after due
and diligent inquiry, Borrower has no notice of any pending or threatened
action or proceeding arising out of the condition
of the Mortgaged Property or any alleged violation of environmental health or
safety statutes, ordinances or regulations;

 

4.                                       To the best of Borrower’s knowledge after due
and diligent inquiry, all governmental permits required to operate whatever
business is contemplated on the Leasehold Premises
are and will continue to be in full force and effect and no condition exists
which might threaten the validity of such permits; and

 

5.                                         Neither Borrower, nor any person or entity acting
under or through Borrower (including, without limitation, any tenant of the
Leasehold Premises) has been, is or will be
involved in operations at or near the Leasehold Premises which operations could
lead to

 

31

 

(A)
the imposition of liability on Borrower, or on any subsequent owner of the
Leasehold Premises or (B) the creation of a lien on the Mortgaged Property
under the Hazardous Waste Laws or under similar laws or regulations; and (ii)
Borrower has not permitted and will not permit,
any tenant or occupant of the Leasehold Premises to engage in any activity that
could impose liability under the Hazardous Waste Laws (hereinafter defined) on
any other owner of any of the Mortgaged Property.

 

(b)                                     Removal of Hazardous Materials.  Borrower, at its sole cost and
expense, agrees to ameliorate and remove from the Leasehold Premises with all
due care, any contamination of Hazardous
Materials which may be discovered on the Leasehold Premises, in a safe manner,
and to a safe degree, in accordance with applicable law, as the same may
be changed from time to time and to monitor or cause to be monitored the levels
of Hazardous Materials in the ground water in accordance with the terms and
procedures as may be required by federal, state, or local governmental agencies
having jurisdiction including, but not limited to, any Regional Water Quality
Control Board and the Environmental Protection Agency. “Hazardous
Material(s)” for purposes of this Section 3.14 shall mean all toxic or
hazardous materials, chemicals, wastes or similar substances, including,
without limitation, asbestos insulation and/or urea formaldehyde insulation and
any other materials or substances deemed to be hazardous substances by the Comprehensive Environmental Response,
Compensation and Liability Act, 42 U.S.C. Sec. 6901, et seq., the
Resource Conservation and Recovery Act 42 U.S.C. Section 6901, et seq., or any
other applicable federal, state or municipal law, regulation, ordinance or
requirement pertaining to Hazardous Materials, all as amended or hereafter
amended (collectively “Hazardous Waste Laws”), introduced into the
Leasehold Premises by Borrower or any person or entity acting under or through Borrower (including, without
limitation, any tenant of the Leasehold Premises).  “Petroleum”
for purposes of this Section 3.14 shall include, without limitation, crude oil
or any fraction thereof which is liquid at standard conditions of temperature
or pressure.

 

(c)                                   Indemnification.  Borrower
shall indemnify and save harmless Lender and its agents, representatives, partners, and employees, its successors and
assigns (individually and collectively “Indemnitee”), each of them,
jointly and severally, from and against:

 

1.             Any
and all claims, demands, causes of action, damages, costs, losses, debts, obligations, judgments, charges,
expenses, lawsuits and liabilities, at law or in equity, of every kind or
nature whatsoever under or on account of Hazardous Waste Laws or any similar laws or regulations, including, but not limited
to, (i) injury to or death of any person or persons and damage to or
destruction of the Mortgaged Property, threatened, brought or instituted, arising
out of or in any manner directly or indirectly connected with Hazardous
Materials introduced by Borrower or anyone acting under or through Borrower
(including any tenant of Borrower) into the Leasehold Premises after the date
of the completion of the core and shell of the
Improvements, or (ii) resulting from a breach of Borrower’s representation and
warranties set forth above, Borrower’s obligations under this Section
3.14 and/or any ameliorative work performed by Borrower or any entity
authorized by Borrower;

 

 

32

 

2.                     Any and all penalties threatened, sought, or
imposed on account of a violation of any
laws, statutes, regulations or ordinances pertaining to the Hazardous
Materials, or Borrower’s obligations hereunder;

 

3.                     Any discharge of
Hazardous Materials, the threat of a discharge of any Hazardous Materials, or the presence of any
Hazardous Materials affecting the Leasehold Premises including any loss of
value of the Mortgaged Property as a result of any of the foregoing; and

 

4.                     Any costs of removal or remedial action
incurred by the United States Government or
any costs incurred by any other person or damages from injury to, destruction
of, or loss of natural resources, including reasonable costs of
assessing such injury, destruction or loss incurred pursuant to any Hazardous
Waste Laws from the Mortgaged Property.

 

 

33

 

IN WITNESS WHEREOF,
this Mortgage has been duly executed by Borrower and Lender as of the day first above written.

 

	
   

  	
  FC
  LION LLC

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  FC
  41st Street Associates, LLC

  its
  managing member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  RRG 8
  South, Inc.,

  its managing member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LENDER:

  
	
   

  	
   

  
	
   

  	
  [                                                                    ]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
							

 

 

34

 

	
  STATE OF NEW YORK

  	
  )

  	
   

  
	
   

  	
  )

  	
  ss.:

  
	
   COUNTY OF NEW YORK

  	
  )

  	
   

  

 

On
the           of             200   , before me, the undersigned,
personally appeared
                      ,
personally known to me or proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the
within instrument and acknowledged to me that he executed the same in
his capacity, and that by his signature on the instrument, the individual, or
the entity upon behalf of which the individual acted, executed the instrument.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Notary
  Public

  

 

 

	
  STATE OF NEW YORK

  	
  )

  	
   

  
	
   

  	
  )

  	
  ss.:

  
	
  :COUNTY OF NEW YORK

  	
  )

  	
   

  

 

On
the             of               200   , before me, the undersigned,
personally appeared                       ,
personally known to me or proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the
within instrument and acknowledged to me that he executed the same in
his capacity, and that by his signature on the instrument, the individual, or
the entity upon behalf of which the individual acted, executed the instrument.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Notary
  Public

  

 

 

35

 

EXHIBIT A

 

Mortgage
Schedule

 

 

36

 

 

 

EXHIBIT B

 

Property Description

 

The Condominium Units (in
the Building known as The New York Times Building Condominium and located at and known as and by Street
Number          Eighth Avenue, New York, New York) designated and
described as
Units                         and
         (hereinafter called the “Units”) in the
Declaration of Leasehold Condominium (hereinafter called “Declaration”
made by the Grantor under the Condominium Act of The State of New York) dated             and recorded             in
the Office of the Register of The City of New York, County of New York, in Reel             , P.             establishing
a plan for leasehold condominium ownership of said building and the land upon
which the same is erected (hereafter sometimes collectively called the “Property”)
and also designated and described as Tax Lots Nos.             , Block              ,
Section             ,
Borough of Manhattan, on the Tax Map of the Real Property Assessment Department
of the City of New York and on the Floor Plans of said Building certified by              
A.I. A. of Fox & Fowle, Architects
on             and filed as Condominium Plan No.             on             in the aforesaid Register’s Office. 

 

The land upon which the
Building containing the Units is erected is as follows:

 

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

 

BEGINNING
at the corner formed by the intersection of the northerly line of West 40th
Street with the easterly line of 8th Avenue.

 

RUNNING
THENCE northerly along said easterly line of 8th Avenue, 197 feet 6
inches to the comer formed by the intersection of the easterly side of 8th
Avenue with the southerly line of West 41st Street;

 

THENCE
easterly along said southerly line of West 41st Street, 400 feet;

 

THENCE
southerly and parallel to said easterly line of 8th Avenue, 197 feet
6 inches to the northerly line of West 40th Street;

 

THENCE
westerly along said northerly line of West 40th Street, 400 feet to
the point or place of BEGINNING.

 

Being
the property located at and known
as                   , New York, New York
and also
being Section        , Block         ,
Lots           on the Tax Assessment
Map of the County of New York.

 

37

 

 

 

FC LION LLC

a
New York limited liability company

 

Assignor

 

Notice Address: One MetroTech Center North

Brooklyn,
New York 11201

 

to

 

[NYTC ENTITY]

 

a New York                 

 

Assignee

 

Notice Address: The New York Times Company

229 West 43rd Street

New York, New York 10036

Attention: General Counsel

 

 

ASSIGNMENT OF LEASES AND RENTS

 

 

Dated: as
of             , 200  

 

Note Amount:
$                   

 

Maturity
Date:                 

 

Location:                 Eighth
Avenue

New York, New
York              

 

Tax Map Designation:

 

Block:     

Lots:     

 

 

THIS DOCUMENT PREPARED BY AND RECORD AND RETURN
TO:

 

Swidler Berlin Shereff Friedman LLP

405 Lexington Avenue

New York, New York 10174

Attn: Martin D. Polevoy, Esq.

 

 

 

 

ASSIGNMENT OF LEASES AND RENTS

 

ASSIGNMENT (this “Assignment”) MADE AS OF
THIS         day  of          ,
200     by FC LION LLC, a New
York limited liability company having an address at                                                        (“Assignor”)
in favor of [NYTC ENTITY] a New York
limited liability company having an address at                                                                          (“Assignee”).

 

For good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, Assignor
does hereby absolutely, presently and irrevocably assign, transfer and set over unto Assignee
the following:

 

A.                                     All of the right, title
and interest of Assignor in and to those certain lease(s) affecting all or a
portion of the Assignor’s interest in real property more particularly described on
Exhibit A hereto (the “Premises”)
which lease(s) are listed on Exhibit B hereto,
and all other and future lease(s) of the Premises, and all modifications,
renewals, and extensions of the lease(s) listed on Exhibit B and of other and future lease(s), and guarantees, if any, of
the lessee’s obligations under said lease(s) listed on Exhibit B and under other and future
lease(s). Each of said lease(s) and other and future lease(s) and all
modifications, renewals and extensions and guarantees, if any, relating thereto
are hereinafter collectively referred to as the “Lease(s)”; and

 

B.                                     All rents, issues,
income, proceeds and profits arising from the Lease(s) and from the use and
occupancy of the Premises, including, without limitation, all fixed and additional rents,
cancellation payments, and all sums due and payments made under any guarantee
of any of the Lease(s) or any obligations thereunder  (collectively “Rents”).

 

C.                                     All rights, powers,
privileges, options and other benefits of Assignor under the Leases, including
without limitation the immediate and continuing right to make claim for,
receive, collect and receipt for all Rents, including the right to make such claim in a
proceeding under the Bankruptcy Code (hereinbelow defined), and the right to apply the
same to the payment of the Debt (hereinbelow defined).

 

THIS ASSIGNMENT is an absolute, present and irrevocable assignment
and is made for
the purpose of securing:

 

A. The payment of all
sums and indebtedness now or hereafter due under that certain Substitute Extension
Loan Note and any amendments, extensions or renewals thereof, (the Substitute Extension Loan Note
together with all amendments, extensions or renewals thereof is hereinafter

 

 

referred to as the “Note”) in the original principal sum of                                                                                         DOLLARS ($                                                       ) made by Assignor to
Assignee, and dated of even date herewith, which Note is also secured by a
Substitute Extension
Loan Mortgage and Security Agreement (Leasehold) (the Substitute Extension Loan
Mortgage
and Security Agreement (Leasehold) together with all amendments, extensions or
renewals thereof
is hereinafter called the “Mortgage”) dated of even date herewith, and intended
to be duly recorded concurrently herewith.

 

B.             The performance and discharge of each and every
obligation, covenant and agreement of
Assignor under this Assignment, the Note, the Mortgage and any other
instruments securing the Note
(collectively the “Loan Documents”).

 

C.             The payment of all sums now and hereafter
becoming due and payable under the Loan Documents (hereinafter the
“Debt”).

 

THIS
ASSIGNMENT is made on
the following covenants, terms and conditions:

 

SECTION 1. ASSIGNOR’S COVENANTS
AND WARRANTIES

 

Assignor
hereby covenants and warrants to Assignee as follows:

 

(a)                   Assignor has not executed any prior
assignment of the Leases or Rents, except for that
Assignment of Leases and Rents made to Assignee in connection with the First Mortgage (as defined in the Mortgage) nor has it
performed any act or executed any other instrument which might prevent Assignor from fulfilling any of the terms
and conditions of this Assignment or
which might prevent Assignee from operating under any of the terms and conditions
of this Assignment or which would limit Assignee in such operation;

 

(b)                   Assignor has not executed
or granted any modification whatsoever of any of the Lease(s), except as
indicated on Exhibit B; the
Lease(s) are in full force and effect; and there are no defaults now existing under the
Lease(s), or any conditions which, after notice, passage of time, or both would constitute material
defaults, except as described in Schedule 1 to the Rent Roll Certification made by Assignor
of even date herewith;

 

(c)                   Assignor will observe
and perform all the obligations imposed upon the lessor under any Lease(s) and will
not do or permit to be done anything to impair any of the Lease(s);

 

(d)                   Assignor will not
collect any of the rents, issues, income, proceeds and profits arising or
accruing under the Lease(s) or from the Premises (except security
deposits) for more than one (1) month in advance of the time when the same shall
become due under the Lease(s) nor execute any other assignment of the Lease(s)
or assignment of rents, issues, income, proceeds or profits with respect to the Premises; and

 

2

 

(e)           Except
as permitted under the Declaration (as such term is defined in the Mortgage),
Assignor will not enter into new Lease(s) or alter or modify the terms of the
Lease(s), give any consent or exercise any option, accept a surrender thereof, or
consent to any assignment of or subletting under the Lease(s), and Assignor
shall not take any action referred to in this clause (e) unless the consent of the holder of
the First Mortgage to such action shall have been obtained if and to the extent
required under the First Mortgage.

 

SECTION 2. ABSOLUTE ASSIGNMENT OF
LEASE(S); FIRST MORTGAGE

 

Assignor and Assignee
intend that this Assignment constitute a present, irrevocable and absolute assignment of
the Lease(s) and Rents, and not an assignment for additional security only.
Subject to the terms of this Section 2, Assignee grants to Assignor a revocable
license (“License”) to collect and receive the Rents. Assignor hereby agrees that Assignee
may authorize and direct the lessee(s) named in the Lease(s), and any other
occupants of the Premises, and all Lease guarantors, to pay over to Assignee
or such other party as Assignee may direct, all Rents, upon receipt from
Assignee of written notice to the effect that an Event of Default (defined
below) exists, and to continue to do so until the lessees are otherwise
notified by Assignee.

 

This Assignment is in
all respects subject and subordinate to the First Mortgage (as defined in the Mortgage) and to all modifications,
renewals and extensions thereof subject to and in accordance with that certain Subordination and Intercreditor Agreement
of even date herewith between Assignee and the holder of the First Mortgage.

 

SECTION 3. REVOCATION OF LICENSE

 

Upon or at any time after the occurrence of a
default under this Assignment after any applicable
notice or cure period herein provided for, or an Event of Default as defined in
the Note or Mortgage (collectively, an “Event of Default”), the License granted
to Assignor in Section 2 of this Assignment shall automatically be
revoked without the need of any action by Assignee, and Assignee shall
immediately be entitled to receipt and possession of all Rents, whether or not Assignee enters upon or takes control of the
Premises.

 

Upon demand by Assignee
following the occurrence of an Event of Default, Assignor shall immediately
deliver to Assignee all Rents in the possession of Assignor or its agents, and shall cooperate in instructing Assignor’s
agents and the lessee(s) under the Leases(s) and all others in possession of the Premises or any portion thereof to pay
directly to Assignee all Rents.

 

Upon revocation of the
License, Assignee may, at its option, without waiving such Event of Default and without
notice or regard to the adequacy of the security for the Debt, either in person
or by agent, nominee or attorney, or by a receiver appointed by a court, with
or without bringing any action or proceeding, dispossess Assignor and its
agents and servants from the

 

3

 

Premises, without liability for trespass, damages
or otherwise, and exclude Assignor and its agents from the Premises.

 

Upon revocation of the
License, Assignee may also take possession of the Premises, and all books, records and accounts relating
thereto and have, hold, manage, lease and operate the Premises on such terms and for such period of time as Assignee may deem
proper. In addition, and with or without taking possession of the Premises,
Assignee, in its own name, may demand, sue for or otherwise collect and receive
all Rents, including those past due and unpaid and may apply any Rents
collected in such order of priority as Assignee in its sole discretion deems appropriate, to the payment of:

 

(a)           all expenses of
managing the Premises, including, without limitation, the salaries, fees and
wages of a managing agent and such other persons or entities as Assignee may
deem necessary or desirable, and all expenses of operating and maintaining the
Premises, including, without
limitation, all taxes, claims, assessments, ground rents, water rents, sewer
rents and any other liens or charges, and premiums for all insurance which Assignee may deem necessary or desirable, and the
cost of all alterations, renovations, repairs or replacements, and all
expenses incident to taking and retaining possession of the Premises;

 

(b)                  the Debt; and

 

(c)            all costs and reasonable attorneys’ fees incurred
in connection with the enforcement of this Assignment and any of the Loan
Documents.

 

SECTION 4. NO LIABILITY OF
ASSIGNEE

 

This Assignment shall not
be construed to bind Lender to the performance of any of the covenants, conditions,
or provisions contained in any Lease, or otherwise impose any obligation upon Assignee. Assignee
shall not be liable for any loss sustained by Assignor resulting from Assignee’s failure to
let the Premises after an Event of Default, or from any other act or omission of Assignee either in
collecting the Rents, or if Assignee shall have taken possession of the
Premises, in managing the Premises after an Event of Default, unless such loss
is caused by the willful misconduct or bad faith of Assignee.

 

SECTION 5. NO MORTGAGEE IN
POSSESSION

 

In the absence of taking
of actual possession of the Premises by Assignee, in its own right and person, Assignee (i)
shall not be deemed a mortgagee in possession, (ii) shall not be responsible for the
payment of any taxes or assessments with respect to the Premises, (iii) shall
not be liable to perform any obligation of the lessor under any Lease(s) or
under applicable law,

 

4

 

(iv) shall not be liable to any person for any dangerous
or defective condition in the Premises nor for any negligence in the
management, upkeep, repair, or control of the said Premises resulting in loss
or injury or death to any person, and (v) shall not be liable in any manner for
the remediation of any environmental impairment.

 

SECTION 6. BANKRUPTCY

 

If there shall be filed
by or against Assignor a petition under the United States Bankruptcy Code (the “Bankruptcy
Code”), and Assignor, as lessor under any Lease(s), shall determine to reject
any Lease(s) pursuant to Section 365(a) of the Bankruptcy Code, the Assignor
shall give Assignee not less than ten (10) days’ prior notice of the date on
which Assignor shall apply to the bankruptcy
court for authority to reject the Lease(s). Assignee shall have the right, but
not the obligation, to serve upon Assignor within such ten-day period a notice
stating that (i) Assignee demands that
Assignor assume and assign the Lease to Assignee pursuant to Section 365 of the
Bankruptcy Code and (ii) Assignee covenants to cure or provide adequate
assurance of future performance under the Lease(s). If Assignee serves
upon Assignor the notice described in the preceding sentence, Assignor shall
not seek to reject the Lease(s) and shall comply with the demand provided for in clause (i) of the
preceding sentence within thirty (30) days after the notice shall have been
given, subject to the performance by Assignee of the covenant provided for in
clause (ii) of the preceding sentence.

 

SECTION 7. INDEMNITY OF ASSIGNEE

 

Assignor hereby indemnifies Assignee for, and
holds Assignee harmless from, any and all
liability, loss or damage which may be incurred under said Lease(s), or under
or by reason of this Assignment, and from any and all claims and demands
whatsoever which may be asserted against Assignee by reason of any alleged
obligations or undertakings under any of the Lease(s), except for such
claims and demands as may result from Assignee’s gross negligence or willful misconduct. Should Assignee incur any such
liability under the Lease(s) or under or by reason of this Assignment or in
defense of any such claims or demands, the amount thereof, including costs,
expenses and reasonable attorneys’ fees, shall be secured by the Mortgage and
Assignor shall reimburse Assignee therefor,
immediately upon demand and upon the failure of Assignor so to do, Assignee, at
its option, may declare all sums secured by the Mortgage immediately due and
payable.

 

SECTION 8. NO WAIVER OF RIGHTS BY
ASSIGNEE

 

Nothing contained in
this Assignment and no act done or omitted by Assignee pursuant to the powers and rights
granted it hereunder shall be deemed to be a waiver by Assignee of any of its
rights and remedies under the Note, Mortgage or any other instrument securing
the Note. This

 

5

 

Assignment is made and accepted without prejudice to any
of such rights and remedies possessed by Assignee to collect the Debt and to
enforce the Loan Documents, and said rights and remedies may be exercised by
Assignee either prior to, simultaneously with, or subsequent to any action taken by it hereunder.

 

SECTION 9. RELEASES OF PARTIES
AND SECURITY

 

Assignee may take or
release other security for the payment of the Debt, may release any party primarily or
secondarily liable therefor, and may apply any other security held by it to the
satisfaction
of any portion of the Debt without prejudice to any of its rights under this Assignment. In no event
shall any member in Borrower be liable for any amount outstanding hereunder, but the
foregoing shall not be deemed to limit the liability of Forest City
Enterprises, Inc.
under that certain Guaranty executed and delivered to Assignee of even date
herewith.

 

SECTION 10. FUTURE ASSURANCES

 

Assignor agrees that it
will, from time to time, upon demand therefor by Assignee, deliver to Assignee an executed
counterpart of each and every Lease. Further, Assignor agrees that it will
execute, acknowledge and record such additional assurances and assignments as
Assignee may
reasonably request covering any and all of the Lease(s). Such assignments shall
be on forms
approved by the Assignee, and Assignor agrees to pay all costs incurred in
connection with the recording of such assignments.

 

SECTION 11. AMENDMENTS

 

This Assignment may not
be altered or amended except in a writing, intended for that specific purpose,
signed by both Assignor and Assignee.

 

SECTION 12. HEADINGS AND CAPTIONS

 

The headings and
captions of various sections of this Assignment are for convenience only and
are not to be construed as defining or limiting, in any way, the scope or
intent of the provisions hereof.

 

SECTION 13. NOTICES

 

The parties agree that
all notices, demands or documents which are required or permitted to be given or served
hereunder shall be given in the manner and to the parties as provided in the Mortgage.

 

6

 

SECTION 14. GOVERNING LAW

 

This instrument shall be governed by the laws
of the jurisdiction in which the Premises are located and, upon the occurrence
of an Event of Default, Assignee shall have, in addition to the rights and remedies expressly set forth
herein, all rights and remedies available to Assignee as the holder of an assignment of leases, rents,
issues and profits in that jurisdiction.

 

SECTION 15. DISCHARGE

 

Until the payment in full of the Debt, this Assignment
shall continue in full force and effect, whether or not recorded. Assignor
hereby authorizes Assignee to furnish to any person written notice, that
this Assignment of Leases and Rents remains in effect and agrees that such person may rely upon
and shall be bound by such statement. Upon payment in full of the Debt and the
delivery and recording of a satisfaction or discharge of Mortgage duly
executed, this Assignment shall be terminated, void and of no effect and Assignee shall
deliver to assignor an instrument in recordable form confirming such
termination.

 

SECTION 16. SEVERABILITY

 

If any one or more of the
provisions contained in this Assignment shall for any reason be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall
not affect any other provision of this Assignment but this Assignment shall be construed as if such
invalid, illegal, or unenforceable provision had never been contained herein.

 

7

 

IN WITNESS WHEREOF, the Assignor has duly executed this Assignment as
of the date first written above.

 

 

	
   

  	
  Borrower:

  
	
   

  	
   

  
	
   

  	
  FC
  LION LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  FC 41st Street Associates, LLC

  its
  managing member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  RRG 8 South, Inc.

  its managing member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Its:

  	
   

  	
   

  

 

8

 

ACKNOWLEDGMENTS

 

	
  STATE OF NEW YORK

  	
  )

  	
   

  
	
   

  	
  )

  	
  ss.:

  
	
   COUNTY OF NEW YORK

  	
  )

  	
   

  

 

On
the             of                          200    , before me, the
undersigned, personally appeared                          , personally known to
me or proved to me on the basis of satisfactory evidence to be the person whose
name is subscribed to the within instrument and acknowledged to me that he
executed the same in his capacity, and that by his signature on the instrument,
the individual, or the entity upon behalf of which the individual acted, executed
the instrument.

 

	
   

  	
   

  	
   

  
	
   

  	
  Notary
  Public

  

 

 

EXHIBIT A

 

DESCRIPTION OF LAND

 

The
Condominium Units (in the Building known as The New York Times Building Condominium and located at and known as and by
Street Number          Eighth
Avenue, New York, New York) designated and described as
Units                              and     (hereinafter called the “Units”) in the
Declaration of Leasehold Condominium (hereinafter called “Declaration”
made by the Grantor under the Condominium Act of The State of New York) dated           and recorded          in
the Office of the Register of The City of New York, County of New York, in Reel       , P.       establishing
a plan for leasehold condominium ownership of said building and the land upon which the same is erected (hereafter
sometimes collectively called the “Property”) and also designated
and described as Tax Lots Nos.               , Block       ,
Section          , Borough of Manhattan, on the Tax Map of the
Real Property Assessment Department of the City of New York and on the Floor
Plans of said Building certified by                A.I. A. of Fox & Fowle, Architects on               and
filed as Condominium Plan No.         on                     in the aforesaid Register’s Office.

 

The
land upon which the Building containing the Units is erected is as follows:

 

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

 

BEGINNING at the corner formed by the intersection of the
northerly line of West 40th Street with the easterly line
of 8th Avenue.

 

RUNNING THENCE northerly along said easterly line of 8th
Avenue, 197 feet 6 inches to the corner formed by the intersection of the
easterly side of 8th Avenue with the southerly line of West 41st
Street;

 

THENCE easterly along said southerly line of West 4Ist
Street, 400 feet;

 

THENCE southerly and parallel to said easterly line of 8th
Avenue, 197 feet 6 inches to the northerly line of West 40th Street;

 

THENCE westerly along said northerly line of West 40lh
Street, 400 feet to the point or place of BEGINNING.

 

Being the property located at
and known
as                    ,
New York, New York and
also being Section          , Block          , Lots          on
the Tax Assessment Map of the County of New
York.

 

 

EXHIBIT B

 

LEASES 

 

	
  NAME OF
  TENANT

  	
   

  	
  DATE OF LEASE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

EXHIBIT
R

 

Intercreditor
Agreement

 

 

R-1

 

EXHIBIT
R

 

[Form of
Standstill Agreement]

 

SUBORDINATION AND
INTERCREDITOR AGREEMENT

 

THIS
SUBORDINATION AND INTERCREDITOR AGREEMENT (this
“Agreement”) is dated as
of               ,
2001 between
[               ]
(together with its successors and assigns, “Senior Lender”),
a               ,
having an office
at               ,
and THE NEW YORK TIMES COMPANY [or an entity
designated by NYTC] (together with its successors and assigns,
“Subordinate Lender”),
a               
, having an office
at                 .

 

RECITALS:

 

A.           Senior
Lender is the holder of a loan (the “Senior Loan”) to FC Lion LLC, a New York
limited liability company (“Borrower”), in the principal amount of
$               ,
which Senior Loan is evidenced by a Mortgage Note (the “Senior Note”) dated               and
is secured by a Mortgage and Security Agreement and an Assignment of Leases and
Rents (the “Senior Mortgage”) dated                
encumbering Borrower’s leasehold interest in the premises described in Exhibit
A attached hereto (the “Property”) and recorded in the Office of the Register
of the City of New York, New York County (the “City Register’s Office”) on
                             
as instrument number
               ,
and by an Assignment of Rents and Leases dated as
of               and
recorded in the City Register’s Office
on               as
instrument
number               .
The documents evidencing and securing the Senior Loan are referred to herein as
the “Senior Loan Documents” and the real and personal property encumbered and
pledged thereunder are referred to herein as the “Senior Loan Collateral”.

 

B.           Subordinate
Lender has made or is about to make a loan (the “Subordinate Loan”) to Borrower
in the principal amount of
$               ,
which Subordinate Loan is evidenced by a Modification of Substitute Extension
Loan Note (the “Subordinate Note”) and secured by an Assignment of Leases and
Rents (the “Assignment of Leases”) and a Mortgage and Security Agreement (the
“Subordinate Mortgage”) encumbering the Senior Loan Collateral. The documents
evidencing and securing the Subordinate Loan are referred to herein as the
“Subordinate Loan Documents”.

 

C.           Subordinate
Lender and Senior Lender desire to establish by this Agreement their respective
rights and obligations between each other as well as the relative priorities of
their rights and remedies with respect to the Senior Loan and the Subordinate
Loan.

 

 

sufficiency
of which are hereby acknowledged and agreed, Subordinate Lender and Senior
Lender hereby agree as follows:

 

1.             Consent
and Estoppel of Senior Lender. Senior Lender hereby acknowledges and
consents to the making of the Subordinate Loan and to the encumbrance of the
Senior Loan Collateral evidenced by the Subordinate Loan Documents and, subject
to the terms and conditions of this Agreement, agrees that the Subordinate Loan
and such encumbrances shall not be deemed to constitute a default under the
Senior Loan Documents.

 

2.             Subordination.  (a) Subordinate Lender hereby covenants and
agrees with Senior Lender that the lien of the Subordinate Mortgage is, and
shall continue to be, subject and subordinate to the lien of the Senior
Mortgage and to any extensions, renewals, consolidations, splitters and
modifications thereof, and to all advances heretofore made or which hereafter
may be made thereon; provided, that except for such advances as may be made
pursuant to the terms of the Senior Loan Documents, the principal amount of the
Senior Note shall not be increased. Any assignment of rents or leases given in
conjunction with the Subordinate Mortgage is and shall in all respects be
subject and subordinate to the Senior Mortgage and to any assignment of rents
or leases given in conjunction with the Senior Mortgage. The foregoing shall
apply notwithstanding the
availability of other collateral to Senior Lender or the actual date and time
of execution, delivery, recordation, filing or perfection of the Senior
Mortgage or the Subordinate Mortgage, or the lien or priority of payment
thereof, and notwithstanding the fact that the Senior Loan or any claim for the
Senior Loan is subordinated, avoided or disallowed, in whole or in part, under
Title 11 of the United States Code (the “Bankruptcy Code”) or other applicable
federal or state law. In the event of a proceeding by or against Borrower or a
member in Borrower for insolvency, liquidation, reorganization, dissolution,
bankruptcy or other similar proceeding pursuant to the Bankruptcy Code or other
applicable federal or state law (a “Reorganization Proceeding”), the Senior
Loan shall include all interest accrued on the Senior Loan, in accordance with
and at the rates specified in the Senior Loan Documents, both for periods
before and for periods after the commencement of any of such proceeding, even
if the claim for such interest is not allowed pursuant to applicable law.

 

(b)            If any
lien or security interest granted to Senior Lender under the Senior Loan
Documents is or becomes, for any reason, unenforceable or unperfected, such
unenforceability or lack of perfection shall not affect the relative rights, as
between Senior

 

2

 

Lender and Subordinate Lender,
which are intended to be created by the Senior Loan Documents, the Subordinate
Lender and this Agreement.  Subordinate
Lender will not contest the enforceability or perfection of the Senior Loan
Documents.

 

(c)           Subordinate Lender will, at
Subordinate Lender’s expense and at any time and from time to time, promptly
execute and deliver all further instruments and documents, and take all further
actions, that may be reasonably necessary, or that Senior Lender may reasonably
request, to protect any right or interest granted by this Agreement or to
enable Senior Lender to exercise and enforce its rights and remedies under this
Agreement.

 

(d)           To the extent that Borrower
makes a payment or payments to Senior Lender or Senior Lender receives any
payment or proceeds of any security for the Senior Loan, which payment(s) or
proceed(s) (or any part) are subsequently voided, invalidated, declared to be
fraudulent conveyances or preferential transfers, set aside or required to be
repaid to a trustee, receiver or any other party under any bankruptcy act,
state or federal law, common law or equitable cause, then, to the extent of the
payment(s) or proceeds received by Senior Lender, the Senior Loan (or part
intended to be satisfied) will be revived for all purposes of this Agreement
and will continue in full force and effect, as if such payment or proceeds had
not been received by Senior Lender.

 

3.             Subordinate
Loan Defaults.  Subordinate Lender
shall send to Senior Lender simultaneously with the delivery of any of the
following notices to Borrower, in accordance with the notice provisions set
forth in Section 8 hereof, a copy of each written notice or writing or
other written communication given by or on behalf of Subordinate Lender with
respect to:  (a) any default or event of
default under or pursuant to the Subordinate Loan Documents; (b) any documents
regarding any agreement or proposed agreement with respect to any foreclosure
under the Subordinate Loan Documents, including, but not limited to, any deed
in lieu of foreclosure; and (c) the exercise by Subordinate Lender of any other
rights or remedies under the Subordinate Loan Documents.

 

4.             Senior
Loan Defaults. (a) Senior Lender shall send to Subordinate Lender
simultaneously with the delivery of any of the following notices to Borrower,
in accordance with the notice provisions set forth in Section 8 hereof, a
copy of each written notice or writing or other written communication given by
or on behalf of such Senior Lender with respect to: (i) any default or event of
default under or pursuant to the Senior Loan Documents; (ii) any documents
regarding any agreement or proposed agreement with respect to any foreclosure
with respect to the Senior Loan Collateral, including, but not limited to, any
deed in lieu of foreclosure; and (iii) the exercise by Senior Lender of any
other

 

3

 

rights or remedies under the
Senior Loan Documents (collectively herein referred to as a “Senior Lender
Notice”).

 

(b)           Notwithstanding anything to the
contrary contained in the Senior Loan Documents, (i) Subordinate Lender shall
have the right, but not the obligation, to cure any default under the terms of
any of the Senior Loan Documents which can be cured with the payment of a sum
of money, on or before the tenth (10th) day after Senior Lender has
given a Senior Lender Notice of such default (and, in the event that
Subordinate Lender and/or Borrower successfully cures such default, Senior
Lender shall not commence any acceleration, foreclosure action or other
proceeding against the Senior Loan Collateral, and any amounts expended or paid
by Subordinate Lender to cure such default shall be deemed permitted advances
under the Subordinate Loan Documents and under this Agreement without the
further consent of Senior Lender); and (ii) in the event of a default by
Borrower, and in lieu of the cure right set forth in clause (i) of this
subparagraph (b), Subordinate Lender shall have the right, but not the
obligation, on or before the forty-fifth (45th) day after Senior
Lender has given a Senior Lender Notice of such default, to obtain an
assignment from the Senior Lender of the Senior Loan Documents upon payment in
full of the unpaid principal balance (including any protective advances made by
Senior Lender) and any accrued and unpaid interest thereon (without any
prepayment premium or penalty, including any default interest rate) under the
Senior Loan Documents together with any reasonable counsel fees incurred by the
Senior Lender in connection with such assignment.

 

(c)           Notwithstanding anything to the
contrary set forth in the Senior Loan Documents, if the default so specified in
a Senior Lender Notice is the failure of Borrower to observe or perform any
covenant, promise or agreement in any Senior Loan Document, other than the
payment of indebtedness or money, Subordinate Lender shall have the right, but
not the obligation, (i) to cure such default by observing or performing such
covenant, promise or agreement, or (ii) to obtain an assignment from the Senior
Lender of the Senior Loan Documents upon payment in full of the unpaid
principal balance (including any protective advances made by Senior Lender) and
any accrued and unpaid interest thereon (without any prepayment premium or
penalty including default interest rate) under the Senior Loan Documents
together with any reasonable counsel fees incurred by the Senior Lender in
connection with such assignment, in either such case, on or before the
forty-fifth (45th) day after Senior Lender has given a Senior Lender
Notice of such default. If the default is not susceptible of cure within such
forty-five (45) day period, Subordinate Lender shall have such additional time
as is necessary in order to effect such cure on the condition that Subordinate
Lender promptly commences and diligently pursues such cure to completion. If
the curing of such default is successfully completed within said time period,
Senior Lender shall not commence any acceleration, any foreclosure action or
proceeding against the Senior Loan Collateral.

 

(d)           If the default specified in a
Senior Lender Notice is not cured in accordance with the provisions of either
subparagraph 4(b) or (c) hereinabove, Senior Lender shall be entitled to
exercise its acceleration and other rights and remedies under the Senior Loan
Documents.

 

4

 

(e)           Following the occurrence and
during the continuation of an Event of Default (as defined in the Senior
Mortgage), Subordinate Lender shall not accept any payment (whether from
Borrower or any other person or entity) with respect to the Subordinate Loan
before the Senior Loan has been irrevocably paid in full in cash. In the event
that following the occurrence and during the continuation of an Event of
Default, Subordinate Lender receives, directly or indirectly, any payment with
respect to the Subordinate Loan before the Senior Loan has been paid in full,
Subordinate Lender will receive and hold the same in trust, as trustee, for the
benefit of Senior Lender and will promptly deliver the same to Senior Lender in
precisely the form received (except for the endorsement or assignment without
recourse and without representation or warranty by Subordinate Lender to Senior
Lender or its order where necessary) for application to the Senior Loan.

 

(f)            Without
limiting Senior Lender’s rights, benefits, remedies and privileges under this
Agreement or the Senior Loan Documents, Senior Lender may, at any time, in its
sole discretion, take all or any of the following actions without releasing
Subordinate Lender from its obligations hereunder or incurring any liability to
Subordinate Lender: (i) renew, extend, accelerate (on the terms set forth in
the Senior Loan Documents) or postpone the time of payment of all or any
portion of the Senior Debt or grant any indulgence with respect to the Senior
Loan; (ii) compromise or settle the Senior Loan; and (iii) waive, substitute,
surrender, exchange or release any of the security provided by the Senior Loan
Documents; provided, however, that the principal amount of the Senior Note shall
not be increased.

 

5.             Standstill. For
so long as any portion of the Senior Loan remains unpaid:

 

(a)  Subordinate Lender shall waive any rights it may have pursuant to
the Subordinate Mortgage to approve or to consent to any action of Borrower if
Senior Lender shall have approved or consented to such action;

 

(b)  Subordinate Lender shall not, without the prior written consent
of Senior Lender take any Enforcement Action (hereinafter defined). For the
purposes of this Agreement, the term “Enforcement Action” shall mean with
respect to the Subordinate Loan Documents, the acceleration of all or any part
of the Subordinate Loan, any foreclosure proceedings, the exercise of any power
of sale, the acceptance by the holder of the Subordinate Mortgage of a deed or
assignment in lieu of foreclosure, the obtaining of a receiver, the seeking of
default interest (provided, however, that nothing shall prevent the accrual of
such default interest pursuant to the terms of the Subordinate Note), the
taking of possession or control of the Property, the suing on any of the
Subordinate Note or any guaranty or other obligation contained in the
Subordinate Loan Documents, the exercising of any banker’s lien or rights of
set-off or recoupment, the commencement of any bankruptcy, reorganization or
insolvency proceedings against Borrower under any federal or state law, or the
taking of any other enforcement action against the Property, provided however
that if Senior Lender accelerates the maturity of Borrower’s indebtedness secured
by the Senior Loan Documents, then Subordinate Lender may

 

5

 

accelerate
the indebtedness secured by the Subordinate Loan Documents (but may not take
any further action without Senior Lender’s consent as aforesaid);

 

(c)  in the event (i) the Senior Loan becomes due or is declared due
and payable prior to its stated maturity, (ii) Subordinate Lender receives any
prepayment of principal or interest, in part or in whole, under the Subordinate
Mortgage contrary to the terms of the Subordinate Loan Documents, (iii) an
Event of Default has occurred and is continuing under the Senior Loan
Documents, or (iv) of a Reorganization Proceeding, then, any payment or
distribution of any kind or character, whether in cash, property or securities
which, but for these subordination provisions, shall be payable or deliverable
with respect to any or all of the Subordinate Loan, shall be paid forthwith or
delivered directly to Senior Lender for application to the payment of the
Senior Loan to the extent necessary to make payment in full of all sums due
under the Senior Loan remaining unpaid after giving effect to any concurrent
payment or distribution to Senior Lender. Any such payment or distribution
received by Subordinate Lender (notwithstanding the preceding sentence of this
paragraph) shall be segregated from the funds and property of Subordinate
Lender and held in trust by Subordinate Lender for the benefit of, and shall be
forthwith be paid over or delivered in the same form as so received (with any
necessary endorsements) by Subordinate Lender to Senior Lender for application
to the payment of the Senior Loan to the extent necessary to make payment in
full of all sums due under the Senior Loan remaining unpaid after giving effect
to any concurrent payment or distribution to Senior Lender. Senior Lender may,
but shall not be obligated to, demand, claim and collect any such payment or
distribution that would, but for these subordination provisions, be payable or
deliverable with respect to the Subordinate Loan. In the event of the
occurrence of (i), (ii), (iii) or (iv) above and until the Senior Loan shall
have been fully paid and satisfied and all of the obligations of Borrower to
Senior Lender have been performed in full, no payment shall be made to or
accepted by Subordinate Lender in respect of the Subordinate Loan;

 

(d)  Subordinate Lender retains any right it may have to request that
a final judgment in a foreclosure of the Senior Mortgage direct payment to
Subordinate Lender of all or any part of the indebtedness secured by the
Subordinate Mortgage from the proceeds of the foreclosure sale of the Senior
Mortgage to the extent that the proceeds of such foreclosure sale are in excess
of any amounts necessary to satisfy the Senior Loan;

 

(e)  Subordinate Lender shall not modify, waive or amend any of the
terms or provisions of the Subordinate Mortgage, without the prior written
consent of Senior Lender. In addition, Subordinate Lender shall not pledge,
assign, hypothecate, transfer, convey or sell (each, a “Transfer”) the
Subordinate Loan or any interest in the Subordinate Loan (other than to an
affiliated entity) without first notifying Senior Lender of each such Transfer;
and

 

(f)  Subordinate Lender shall not collect payments for the purpose of
escrowing taxes, assessments or other charges imposed on the Property or
insurance premiums due on the insurance policies required under the First
Mortgage or the Subordinate Mortgage if Senior Lender is collecting payments
for such purposes,

 

6

 

however,
Subordinate Lender may collect payments for such purposes if Senior Lender is
not collecting the same, provided such payments shall be held in trust by
Subordinate Lender to be applied only for such purposes.

 

(g)           Notwithstanding anything to the contrary contained in the
Senior Loan Documents, in the event of a default by Borrower under the
Subordinate Loan Documents beyond any applicable notice or grace period, if the
Senior Loan Documents are not then in default with respect to the payment of
principal and interest, Subordinate Lender shall have the right, but not the
obligation, at any time prior to the giving by Senior Lender of a Senior Lender
Notice, to obtain an assignment from the Senior Lender of the Senior Loan
Documents upon payment in full of the unpaid principal balance (including any
protective advanced made by Senior Lender) and any accrued and unpaid interest
thereon (without any prepayment premium or penalty) under the Senior Loan
Documents together with any reasonable counsel fees incurred by the Senior
Lender in connection with such assignment.

 

6.             Waiver
of Rights of Subrogation. Until such time as the Senior Loan is
paid in full, the Subordinate Lender shall not exercise any right of
subrogation that the Subordinate Lender may have or obtain pursuant to the
exercise of any right or remedy in connection with the Subordinate Loan.
Without limiting the generality of the foregoing, the Subordinate Lender agrees
not to acquire, directly or indirectly, by subrogation or otherwise, any lien,
estate, right or other interest which is or may be prior in right to the Senior
Mortgage, including, without limitation, advances for real estate taxes.

 

7.             Insurance;
Taking and Condemnation. Subordinate Lender hereby assigns and
transfers to Senior Lender:

 

(a)  all of Subordinate Lender’s right, title, interest or claim, if
any, in and to the proceeds of all policies of insurance covering the Property
(or any portion thereof) with respect to damages arising from the occurrence of
a fire or other casualty for application or disposition thereof in accordance
with the terms, conditions and provisions of the Senior Loan Documents; and

 

(b)  all of Subordinate Lender’s right, title, interest or claim, if
any, in and to all awards or other compensation made for any taking or
condemnation of any part of the Property (or any portion thereof) for
application or disposition thereof in accordance with the terms, conditions,
and provisions of the Senior Loan Documents.

 

8.             Notices. All
notices, requests, demands, consents and approvals under this Agreement shall
be in writing, and shall be hand delivered, sent by registered U.S. Mail,
return receipt requested, or sent by overnight courier service, designated for
next-day delivery, as follows:

 

7

 

If to Senior Lender:

 

 

 

With a copy to:

 

 

 

If to Subordinate Lender:

 

 

c/o The New York Times Company

229 West 43rd Street

New York, New York 10036

Attn:  Mr. David A. Thurm

 

With a copy to:

 

 

c/o The New York Times Company

229 West 43rd Street

New York, New York  10036

Attn:       Solomon
B. Watson, IV, Esq.,

General
Counsel

 

and to:

 

Swidler Berlin Shereff Friedman,
LLP

405 Lexington Avenue

New York, New York 10174

Attn:  Martin D. Polevoy, Esq.

 

Any party hereto may designate a
different address to which or person to whom notices or demands shall be
directed by written notice given in the same manner and directed to the other
parties at the address hereinabove set forth. Any notice given hereunder shall
be deemed received one (1) business day after delivery to an overnight delivery
service designated for next-day delivery, three (3) business days after mailing
if sent by registered U.S. mail return receipt requested, or when actually
received if sent in any other permissible fashion.

 

8

 

9.             Representations,
Warranties and Covenants.

 

(a) Subordinate Lender
represents and warrants to Senior Lender that: (i) this Agreement has been duly
authorized, executed and delivered on behalf of Subordinate Lender; (ii)
Subordinate Lender is the sole legal and equitable holder and owner of the
Subordinate Loan Documents, (iii) the Subordinate Loan Documents are the only
agreements or instruments creating or purporting to create in favor of
Subordinate Lender a lien encumbering the Property (and Subordinate Lender
agrees that, so long as any portion of the Senior Loan remains unpaid,
Subordinate Lender shall not claim any rights under, or the benefit of, any
other agreement or instrument creating or purporting to create in favor of
Subordinate Lender a security interest in the Property prior in lien or right
of payment to the Senior Loan), (iv) the Subordinate Lender owns the Subordinate
Loan, and (v) the aggregate principal indebtedness secured by the Subordinate
Loan Documents is
$                  and
the maturity date is                  .

 

(b)           Subordinate Lender acknowledges
that Senior Lender has made no warranties or representations with respect to
the due execution, legality, validity, completeness or enforceability of the
Senior Loan Documents or the collectibility of the Senior Loan. Senior Lender
will be entitled to manage and supervise the Senior Loan in accordance with its
usual practices, modified from time to time as Senior Lender deems appropriate
under the circumstances, without regard to the existence of any rights that
Subordinate Lender may now or in the future have in or to the Senior Loan
Collateral. Senior Lender will have no liability to Subordinate Lender for, and
Subordinate Lender waives, any claim which it may now or in the future have
against Senior Lender arising out of: (i) any and all actions which Senior
Lender, in good faith, takes or omits to take with respect to the Senior Loan
Documents or the collection of the Senior Loan or the valuation, use,
protection or release of any collateral (including, without limitation, actions
or inactions of Senior Lender with respect to the creation, perfection or
continuation of liens or security interests in its collateral, the occurrence
of an Event of Default, the foreclosure on, sale, release of, depreciation of,
or failure to realize on, any of its collateral, and the collection of any
claim for all or any part of the Senior Loan from any account debtor, guarantor
or other party); (ii) Senior Lender’s election, in any Reorganization
Proceeding, of the application of Section 1111(b)(2) of the Bankruptcy
Code; or (iii) any borrowing or grant of a security interest by Borrower or a
member in Borrower in a Reorganization Proceeding under Section 364 of the
Bankruptcy Code. Notwithstanding anything to the contrary contained herein,
Subordinate Lender does not waive any claim it may have against Senior Lender
arising out of Senior Lender’s alleged breach hereof. Subordinate Lender hereby
waives any rights it may have to require a marshalling of the assets of
Borrower.

 

(c) Senior Lender shall have no
duty to advise Subordinate Lender of information known to Senior Lender regarding
Borrower’s business, financial or other condition or the risk of non-payment of
the Senior Loan. Upon written request made by Subordinate Lender from time to
time, but not more often than once in any calendar year, Senior Lender will
furnish certificates indicating the principal, interest and other sums, if

 

9

 

any, due under the Senior Loan
Documents and whether or not, to the best of Senior Lender’s knowledge, an
Event of Default (or event which, with notice or the passage of time, would
constitute an Event of Default) has occurred.

 

10.           No
Third Party Beneficiary. 
The terms of this Agreement are for the sole and exclusive protection
and use of Subordinate Lender and any holders of the Subordinate Loan Documents
and the Senior Lender and any holders of the Senior Loan Documents. Neither
Borrower, nor any other person or party shall be a third-party beneficiary
hereunder, and no provision hereof shall operate or inure to the use and
benefit of Borrower or any such other person or party.

 

11.           Construction
of this Agreement.  This Agreement is
for the sole benefit of Subordinate Lender and Senior Lender and shall be
binding upon Subordinate Lender and Senior Lender, and all of their respective
affiliates, participants, trustees, receivers, successors and
assigns. Nothing herein shall be deemed to modify, limit or in any way affect
(a) the obligations of Borrower to Senior Lender under Senior Loan Documents,
or (b) the obligations of Borrower to Subordinate Lender under the Subordinate
Loan Documents.

 

12.           Headings;
Severability. The section headings herein are for convenience of
reference only and shall not affect the construction hereof. If any provision
hereof is prohibited, invalid or unenforceable in any jurisdiction, or as to
any fact or circumstance, the same shall not affect the remaining provision
hereof nor affect the validity or enforceability of such provision in any other
jurisdiction or as to other facts or circumstances.

 

13.           Jurisdiction
and Venue; Waiver of Jury Trial. 
Each of the parties hereby irrevocably submits to the jurisdiction of
any federal or state court sitting in State of New York over any suit, action
or proceeding arising out of or relating to this Agreement and covenants and
agrees that such courts shall have exclusive jurisdiction over any such suit,
action or proceeding. Each party irrevocably waives, to the fullest extent
permitted under applicable law, any objections it may now or hereafter have to
the venue of any suit, action or proceeding brought in any such court and any
claim that the same has been brought in an inconvenient forum. Each party
irrevocably waives, to the fullest extent permitted under applicable law, any
right it may have to a jury trial.

 

14.           Governing
Law.  This Agreement shall be governed by
and construed in accordance with the laws of the State of New York.

 

10

 

15.           Modification.  This Agreement may not be amended or
modified except by an agreement in writing executed by all parties to this
Agreement, and no provision of this Agreement may be waived except by a waiver
in writing signed by the party against whom the waiver is asserted.

 

16.           Business
Days.  The terms
“Business Day” and “Business Days” as used in this Agreement shall mean any day
other than a Saturday, a Sunday or a Federal holiday on which the U.S. Postal
Service offices are closed for business in New York, New York.

 

17.           Counterparts.  This Agreement and the consent hereto may be
executed in counterparts, all of which, taken together, shall constitute one
and the same instrument, and any of the parties hereto may execute this
Agreement by signing any such counterpart.

 

18.           Attorneys’
Fees.  In the event of
any lawsuit or other legal proceeding arising from or relating to this
Agreement, the prevailing party shall be entitled to an award of its actual
reasonable attorneys’ fees and related costs and expenses.

 

19.           Specific
Performance. In addition to any other remedies available under any
applicable law, each party hereto shall be entitled to specific
performance of this Agreement, and each party hereby irrevocably waives any
defense to such specific performance based on the adequacy of any remedy at law.

 

20.           Waiver
of Jury Trial. SUBORDINATE LENDER AND SENIOR LENDER WAIVE TRIAL
BY JURY IN ANY ACTION, PROCEEDING, CLAIM, OR COUNTERCLAIM, WHETHER IN CONTRACT
OR TORT, AT LAW OR IN EQUITY, WITH RESPECT TO, IN CONNECTION WITH OR ARISING
OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT OR ANY OTHER DOCUMENT DELIVERED
IN CONNECTION HEREWITH OR THEREWITH.

 

21.           Termination. The
following events are referred to herein as “Termination Events”:  (a) complete payment and satisfaction in
full of the Senior Loan; and (b) complete payment and satisfaction in full of the
Subordinate Loan. Upon the occurrence of a Termination Event, this Agreement
shall automatically terminate, and the provisions herein shall automatically be
of no further force and effect. 
Promptly upon request by Subordinate Lender or Senior Lender, the other
party hereto shall execute any reasonable documents and/or instruments
confirming any such termination.

 

11

 

WITNESS the execution hereof as
of the day and date first above written.

 

	
   

  	
  SENIOR LENDER:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
				

 

 

WITNESS the execution hereof as
of the day and date first above written.

 

	
   

  	
  SUBORDINATE LENDER:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
				

 

12

 

	
  STATE OF NEW YORK

  	
  )

  	
   

  	
   

  	
   

  
	
   

  	
  :

  	
  SS.: 

  	
   

  	
   

  
	
  COUNTY OF NEW YORK

  	
  )

  	
   

  	
   

  	
   

  

 

 

On
the      day
of            ,
200    before me, the undersigned, a Notary Public in and for
said State, personally appeared (Person Appearing), (Personally Proved) to me
on the basis of satisfactory evidence to be the individual(s) whose name(s)
is/are subscribed to the within instrument and acknowledged that he/she/they
executed the same in his/her/their capacity(ies), and that by his/her/their
signature(s) on the instrument, the individual(s), or the person upon behalf of
which the individual(s) acted, executed the instrument.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  (Notary Name)

  
	
   

  	
  Notary Public

  
	
   

  	
  My commission expires: (expiration)

  

 

13

 

	
  STATE OF NEW YORK

  	
  )

  	
   

  	
   

  	
   

  
	
   

  	
  :

  	
  SS.: 

  	
   

  	
   

  
	
  COUNTY OF NEW YORK

  	
  )

  	
   

  	
   

  	
   

  

 

On
the      day
of            ,
200    before me, the undersigned, a Notary Public in and for
said State, personally appeared (Person Appearing), (Personally Proved) to me
on the basis of satisfactory evidence to be the individual(s) whose name(s)
is/are subscribed to the within instrument and acknowledged that he/she/they
executed the same in his/her/their capacity(ies), and that by his/her/their
signature(s) on the instrument, the individual(s), or the person upon behalf of
which the individual(s) acted, executed the instrument.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  (Notary Name)

  
	
   

  	
  Notary Public

  
	
   

  	
  My commission expires: (expiration)

  

 

14

 

EXHIBIT A

 

TO

 

INTERCREDITOR
AGREEMENT

Legal Description

 

15

 

EXHIBIT S

 

Form of Bankruptcy Guaranty

 

S-1

 

EXHIBIT S TO OWNER’S OPERATING
AGREEMENT

 

GUARANTY

 

This GUARANTY (this “Guaranty”) is made as of
[DATE OF NYTC EXTENSION LOAN], by FOREST CITY ENTERPRISES, INC., a corporation
organized under the laws of the State of Ohio, having an address at 1160
Terminal Tower, 50 Public Square, Cleveland, Ohio 44113-2203 (“Guarantor”),
to [LENDER],
a               organized
under the laws of the State
of               ,
having an address c/o The New York Times Company, 229 West 43rd Street, New
York, New York 10036 (“Lender”).

 

WITNESSETH:

 

A.            The New York Times Building LLC, a limited
liability company organized under the laws of the State of New York (“Owner”),
is the tenant under that certain Agreement of Lease dated as of
                  ,
2001 between 42nd St. Development Project, Inc. and Owner (as the same may
hereafter be amended from time to time, the “Ground Lease”) affecting
certain land known as Site 8 South, located at Eighth Avenue between 40th and
41st Streets, in the County, City and State of New York (the “Property”);

 

B.            NYT Real Estate Company LLC, a limited
liability company organized under the laws of the State of New York (“NYTC
Member”) and FC Lion LLC, a limited liability company organized under the laws
of the State of New York (“Borrower”), are the members in Owner pursuant
to a certain Operating Agreement dated as
of               ,
2001 (as the same may hereafter be amended from time to time, “Owner’s
Operating Agreement”);

 

C.            Borrower has requested that Lender make the “NYTC
Extension Loan” to Borrower pursuant to Section 6.03 of Owner’s
Operating Agreement, which NYTC Extension Loan is in the original principal
amount of
                                                           
($                              )
Dollars and is evidenced by that certain Modification of Substitute Extension
Loan Note of even date herewith (the “Extension Loan Note”) and secured,
inter alia, by that certain Modification of Substitute Extension Loan
Mortgage and Security Agreement (Leasehold) of even date herewith (the “Extension
Loan Mortgage”) and that certain Assignment of Leases and Rents of even date herewith (the “Extension Loan ALR”, and together with
the Extension Loan Note, the Extension Loan Mortgage and all other documents
evidencing, securing or governing the NYTC Extension Loan, collectively the “Extension
Loan Documents”);

 

D.            Simultaneously herewith Lender is executing a Subordination and Intercreditor Agreement
(the “Intercreditor Agreement”)
with                              ;

 

 

E.             Lender has required, as an inducement to
Lender to make the NYTC Extension Loan, that Guarantor be responsible for any
losses and costs incurred by Lender by reason of (i) a voluntary bankruptcy,
liquidation, assignment for the benefit of creditors, or similar action by
Borrower, (ii) a collusive involuntary bankruptcy, liquidation, assignment for
the benefit of creditors, or similar action by Borrower, (iii) the consenting
by Borrower to, or failure by Borrower to diligently defend against, any other
involuntary bankruptcy, liquidation, assignment for the benefit of creditors,
or similar action by Borrower, or (iv) the failure of Borrower, upon the
occurrence of a default in the payment of interest or principal under the NYTC
Extension Loan at such time as the Senior Loan (as such term is defined in the
Intercreditor Agreement) is not in default with respect to the payment of
principal or interest due under the Senior Loan, to take all actions required
in connection with the Required Conveyance Action (as such term is hereinafter
defined);

 

F.             Guarantor is an affiliate of Borrower;

 

G.            Guarantor will derive substantial benefit
from Lender’s making the NYTC Extension Loan; and

 

H.            Guarantor has agreed to deliver to Lender
this Agreement.

 

NOW, THEREFORE, in consideration of the foregoing premises and other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Guarantor hereby covenants and agrees as follows:

 

1.             Definitions.  Capitalized terms used herein
but not otherwise defined shall have the meanings ascribed to them in Owner’s
Operating Agreement.

 

2.             Guaranteed Obligations. Guarantor, for itself, its successors and
assigns, hereby primarily, unconditionally, absolutely and irrevocably
guarantees the following obligations referred to in subparagraph (a) or (b) of
this Paragraph 2 applicable to a Bankruptcy Triggering Event (as such term is
hereinafter defined) or a Non-Conveyance Triggering Event (as such term is
hereinafter defined), as the case may be (the “Guaranteed Obligations”):

 

(a)           in the event of a Bankruptcy Triggering
Event, the full and prompt payment to Lender of (i) the unpaid principal
balance of the NYTC Extension Loan, any accrued and unpaid interest thereon,
late charges, and interest at the Involuntary Rate (as defined in the Extension
Loan Mortgage) after default by Borrower in repaying the NYTC Extension Loan,
and any costs of collection, including attorneys’ fees and expenses in
enforcing the terms of the NYTC Extension Loan or exercising any right or
remedy permitted under the Extension Loan Documents, or at law or in equity as
against Borrower (the amounts referred to in this clause 2(a)(i) being herein
collectively called the “Extension Loan Balance”), (ii) the payment of
any and all other actual losses or damages suffered or incurred by Lender by
reason of the occurrence of a Bankruptcy Triggering Event prior to repayment in
full of the NYTC Extension

 

2

 

Loan
(or subsequent to repayment of the NYTC Extension Loan if, following any
Bankruptcy Triggering Event, Lender is required to disgorge or repay to
Borrower, any creditor of Borrower, Borrower’s estate in bankruptcy, or any
trustee appointed in any bankruptcy proceeding affecting Borrower, any payment
made by Borrower or Guarantor with respect to or on account of the NYTC
Extension Loan), and (iii) any Enforcement Costs (as hereinafter defined in
Paragraph 18 hereof); and

 

(b)           in the event of a Non-Conveyance Triggering
Event, the full and prompt payment to Lender of (i) the Extension Loan Balance
(including, without limitation, accrued interest at the Involuntary Rate from
the Demand Date until repayment of the Extension Loan Balance in full by
Borrower to Lender), (ii) the payment of any and all other actual losses or
damages suffered or incurred by Lender by reason of the occurrence of a
Non-Conveyance Triggering Event, and (iii) any Enforcement Costs.

 

3.             Triggering Events. Notwithstanding anything to the contrary
herein, Lender hereby agrees that Lender shall not seek to collect or enforce
this Guaranty, and Guarantor shall have no liability hereunder, if and for so
long as no Bankruptcy Triggering Event and no Non-Conveyance Triggering Event
shall have occurred (i.e., Guarantor shall be liable under this Guaranty if at
any time any one or more Bankruptcy Triggering Events or any one or more
Non-Conveyance Triggering Events occurs), to wit:

 

(a)           neither Borrower nor Guarantor commences an action for, conducts, files
or applies for or is the subject of any voluntary liquidation, dissolution,
receivership, insolvency, bankruptcy, assignment for the benefit of creditors,
reorganization, arrangement, composition or readjustment, or other similar
protection, remedy, action or proceeding; and/or

 

(b)           neither Borrower nor Guarantor is the subject of any involuntary
liquidation, dissolution, receivership, insolvency, bankruptcy, assignment for
the benefit of creditors, reorganization, arrangement, composition or
readjustment, or other similar filing, protection, remedy, action or proceeding
(collectively, an “Involuntary Bankruptcy Action”) which is collusive or
which is initiated on the basis of a debt or obligation for money borrowed by
Borrower or goods or services obtained by Borrower in violation of Borrower’s
articles of organization or operating agreement. For purposes hereof an
Involuntary Bankruptcy Action is deemed be “collusive” when it can
reasonably be demonstrated that Borrower, Guarantor or any other individual or
entity affiliated with, related to or holding an interest in Borrower
(including without limitation INGREDUS Site 8 South LLC), or an entity related
thereto, or any successors or assigns of any of the foregoing, either (A) is a
petitioner in such involuntary filing, protection, remedy, action or
proceeding, or (B) has collaborated with a third party petitioner to cause,
establish or default in the payment of, the debt or obligation on the basis of
which such Involuntary Bankruptcy Action is brought; and/or

 

3

 

(c)           in the event of any involuntary Bankruptcy Action against Borrower or
Guarantor, as the case may be, neither Borrower nor Guarantor shall consent to
or acquiesce in the filing of such involuntary Bankruptcy Action or the
appointment of a receiver, trustee or liquidator of it or any substantial
portion of its assets in connection therewith, it being understood and agreed
that the term “acquiesce” includes but is not limited to, the failure to
file a petition or motion to vacate or discharge any order, judgment or decree
within twenty (20) days after entry of same if and to the extent Borrower or
Guarantor, as the case may be, has a good faith basis to raise any grounds for
filing such a petition or motion to vacate or discharge) and shall diligently
defend against (if and to the extent Borrower or Guarantor has a good-faith
basis to raise any defense) and seek to have dismissed any such Involuntary
Bankruptcy Action (if and to the extent Borrower or Guarantor has a good-faith
basis to raise any grounds for dismissal), provided that the foregoing shall
not be deemed to obligate Borrower or Guarantor to pay the debt or obligation
giving rise to such Involuntary Bankruptcy Action or any part thereof in order
to obtain such dismissal

 

(any action or occurrence in violation of the provisions of
subparagraph (a), (b) or (c) of this Paragraph 3 being herein called a “Bankruptcy
Triggering Event”); and/or

 

(d)           in the event of a default in the payment of interest or principal with
respect to the NYTC Extension Loan (including, without limitation, a default in
the payment of principal on maturity of the NYTC Extension Loan) at such time
as the Senior Loan is not in default with respect to the payment of principal
or interest due under the Senior Loan, which default under the NYTC Extension
Loan continues for ten (10) days (the “10-Day Cure Period”) after
delivery of written notice by Lender to Borrower and Guarantor in the form
annexed hereto as Exhibit A (the “10-Day Notice”), and which default,
solely in the case of the first default in the payment of principal or interest
during the term of the Extension Loan as to which Lender has delivered the
10-Day Notice, continues after the expiration of the 10- Day Cure Period for a
further period of five (5) days after delivery of written notice by Lender to
Borrower and Guarantor in the form annexed hereto as Exhibit B (the “5-Day
Notice”) (it being acknowledged and agreed that with respect to the second
and any subsequent occasion on which Lender delivers a 10- Day Notice, Lender
shall not be obligated to give and shall not give a 5-day Notice), Borrower,
within ten (10) days after delivery by Lender to Borrower and Guarantor of a
Demand Notice accompanied by counterparts of the Conveyance Documents or the
Foreclosure Documents, as the case may be, to be executed by Borrower, takes
all of the following actions (collectively, the “Required Conveyance Action”)
set forth in clauses subparagraph 3(d)(i) and 3(d) (ii) below (any failure by
Borrower to take such actions within ten (10) days after delivery by Lender of
a Demand Notice accompanied by counterparts of the Conveyance Documents or the
Foreclosure Documents, as the case may be, to be executed by

 

4

 

Borrower being herein called a “Non-Conveyance Triggering Event”,
the terms “Conveyance Documents”. “Demand Notice” and “Foreclosure
Documents” having the meanings hereinafter set forth):

 

(i)            at Lender’s option (as elected by Lender at
Lender’s sole and absolute discretion in the Demand Notice), either:

 

(A)          (1) conveys to Lender (or its designee) the Mortgaged Property (as
defined in the Extension Loan Mortgage), including, without limitation, the
execution of all assignments and required ancillary transfer documentation
and/or affidavits, all in the form annexed to this Guaranty as Exhibit C or
otherwise in form and substance satisfactory to Lender and, in any event, approved
by Lender’s title insurance company (collectively, the “Conveyance Documents”),
and (2) pays any and all transfer taxes and any other expenses of Lender (or
its designee) in connection with the conveyance of the Mortgaged Property to
Lender (or its designee), and (3) delivers to Lender or its designee possession
of the Mortgaged Property subject only to the rights of permitted tenants and
occupants under the Condominium Declaration (as defined in the Extension Loan
Mortgage), or

 

(B)           (1) executes a stipulation consenting to the immediate entry of a
judgment of foreclosure and the immediate sale at public auction of the
Mortgaged Property in accordance with the terms thereof, and all other
documents required in connection therewith to effectuate such immediate entry
of a judgment of foreclosure and the immediate sale at public auction of the
Mortgaged Property, said judgment and stipulation and other documents to be in
the form annexed to this Guaranty as Exhibit D or otherwise in form and
substance satisfactory to Lender and, in any event, approved by Lender’s title
insurance company (collectively, the “Foreclosure Documents”), and (2)
pays any and all transfer taxes and any other expenses of Lender (or its
designee) in connection with the foreclosure of the Extension Loan pursuant to
the Foreclosure Documents and the transfer of the Mortgaged Property pursuant
to such foreclosure; and

 

(ii)           pays all accrued interest on the Extension Loan Balance at the
Involuntary Rate from the Demand Date through and including the date Borrower
fully complies with the provisions of clauses (A) or (B), as applicable, of
subparagraph 3(d)(i) hereof.

 

5

 

As used herein the term “Demand Date” shall mean the date on
which Lender notifies Guarantor and Borrower in writing (the “Demand Notice”),
such Demand Notice to be in the form of Exhibit E annexed hereto, that Lender
has elected that Borrower take a Required Conveyance Action and specifying
whether Lender has elected that Borrower take the Required Conveyance Action
described in clause (A) of the first sentence of subparagraph 3(d)(i) hereof,
in which event the Demand Notice shall be accompanied by counterparts of the
Conveyance Documents to be executed by Borrower, or clause (B) of the first
sentence of this subparagraph 3(d)(i) hereof, in which event the Demand Notice
shall be accompanied by counterparts of the Foreclosure Documents to be
executed by Borrower.

 

Notwithstanding the foregoing provisions of subparagraph 3(d), in the
event Borrower is prevented from taking any of the actions referred to in
subparagraph 3(d)(i) or 3(d)(ii) hereof solely by reason of the fact that (i)
Borrower has been enjoined by a court of competent jurisdiction, over
Borrower’s objection and diligent opposition and defense in a hearing on the
merits that is based on Borrower’s good faith belief that its objection is
meritorious, from taking such action (other than by reason of an injunction
obtained by or on behalf of Borrower, Guarantor, any member of Borrower
including without limitation INGREDUS Site 8 South LLC, or any affiliate of
Borrower, Guarantor or INGREDUS Site 8 South LLC, or any of their respective
successors or assigns), or (ii) all of Borrower’s members have been enjoined by
a court of competent jurisdiction, over the objection and diligent opposition
and defense in a hearing on the merits by each such member of Borrower, from
taking such action (other than by reason of an injunction obtained by or on
behalf of Borrower, Guarantor, any member of Borrower including without
limitation INGREDUS Site 8 South LLC, or any affiliate of Borrower, Guarantor
or INGREDUS Site 8 South LLC, or any of their respective successors or
assigns), it being acknowledged and agreed that the provisions of this clause
(ii) shall not apply in the case of an injunction against any one or more but
not all of the members of Borrower, or (iii) Borrower is prevented from taking
such action by reason of the imposition of the automatic stay provisions of the
Bankruptcy Code in an Involuntary Bankruptcy Action (other than an Involuntary
Bankruptcy Action which would constitute a Bankruptcy Triggering Event under
this Guaranty), then the Demand Date shall be postponed until the first date on
which Borrower is no longer precluded from taking the actions referred to in
subparagraph 3(d)(i) or 3(d)(ii) solely by reason of the circumstances
described in clause (i), (ii) or (iii) of this sentence.

 

The foregoing provisions of this Paragraph 3 shall not (a) constitute a
waiver of any obligation guarantied or secured by this Guaranty, (b) affect in
any way the legality, validity, binding effect or enforceability of this
Guaranty, of Owner’s Operating Agreement or the NYTC Extension Loan Documents,
(c) release or impair this Guaranty, or (d) prevent or in any way hinder Lender
from exercising, or constitute a defense, an affirmative defense, a
counterclaim, or basis for relief in respect of the exercise of, any remedy
and/or remedies against any party or assets under Owner’s Operating Agreement.

 

For purposes of this Guaranty, the term “Involuntary Bankruptcy
Action” shall not include any involuntary liquidation, dissolution,
receivership, insolvency, bankruptcy,

 

6

 

assignment for the benefit of creditors, reorganization, arrangement,
composition or readjustment, or other similar protection, remedy, action or
proceeding initiated by The New York Times Company or any Affiliate (as such
term is defined in Owner’s Operating Agreement) of The New York Times Company.

 

Notwithstanding anything to
the contrary contained in the Extension Loan Documents, from and after the
occurrence of a Non-Conveyance Triggering Event, the term “Involuntary Rate”
shall mean (i) eighteen (18%) percent per annum, or (ii) the maximum rate or
amount, if any, permitted by applicable law, whichever is less.

 

4.     Guaranty Absolute.

 

(a)           Guarantor guarantees the Guaranteed
Obligations, regardless of any law, statute, rule, regulation, decree or order
now or hereafter in effect in any jurisdiction affecting or purporting to
affect in any manner any of the terms or the rights or remedies of Lender with
respect thereto.

 

(b)           The liability of Guarantor under this
Guaranty is present, primary, continuing, absolute and unconditional, and shall
not be affected, released, terminated, discharged or impaired, in whole or in
part, by any or all of the following, and Lender may proceed, with or without
further notice to or assent from Guarantor, to exercise any right or remedy
hereunder irrespective of and Guarantor hereby waives any defense or
counterclaim predicated upon; any or all of the following:

 

(i)            any lack of genuineness, regularity,
validity, legality or enforceability, or the voidableness of the NYTC Extension
Loan Documents or Owner’s Operating Agreement or any other agreement or
instrument relating thereto;

 

(ii)           the failure of Lender to exercise or to exhaust any other right or
remedy or take any other action against any other security available to it;

 

(iii)          any failure, delay, waiver, consent, indulgence, or forbearance of
Lender in connection with the exercise of, or any lack of diligence in
exercising, any right or remedy with respect to the NYTC Extension Loan
Documents or Owner’s Operating Agreement or this Guaranty;

 

(iv)          any dealings or transactions between Lender and Borrower, whether or
not Guarantor shall be a party to or cognizant of the same;

 

(v)           any bankruptcy, insolvency, assignment for the benefit of creditors,
receivership, trusteeship or dissolution of or affecting Borrower, Owner or any
other party;

 

(vi)          any other guaranty now or hereafter executed by Guarantor or any other
guarantor or the release of any other guarantor from liability for the payment,
performance

 

7

 

or observance of any of the Guaranteed Obligations on the part of
Guarantor to be paid, performed or observed, as applicable, whether by
operation of law or otherwise;

 

(vii)         any rights, powers or privileges Guarantor may now or hereafter have
against any Borrower or any other person, entity or collateral in respect of
the Guaranteed Obligations;

 

(viii)        any other circumstance which might in any manner or to any extent
constitute a defense available to, or vary the risk of Guarantor, or might otherwise
constitute a legal or equitable discharge or defense available to a surety or
guarantor, whether similar or dissimilar to the foregoing;

 

(ix)           any notice of the creation, renewal or extension of the Guaranteed
Obligations and notice of or proof of reliance by Lender upon this Guaranty or
acceptance of this Guaranty;

 

(x)            any change, restructuring or termination of
the structure or existence of Borrower;

 

(xi)           any amendment, extension or modification of or addition or supplement
to the NYTC Extension Loan Documents or Owner’s Operating Agreement or any of
them, except that insofar as the Guaranteed Obligations change by reason
thereof this Guaranty shall extend to the Guaranteed Obligations as they may be
extended, increased, diminished, reduced or otherwise changed by reason
thereof;

 

(xii)          any irregularity in or invalidity or unenforceability of all or any
part of the NYTC Extension Loan Documents or Owner’s Operating Agreement or any
of them;

 

(xiii)         any assignment, conveyance, mortgage, merger or other transfer,
voluntarily or involuntarily (whether by operation of law or otherwise), of all
or any part of Borrower’s interest in the “Mortgaged Property” (as such term is
defined in the NYTC Extension Loan Documents);

 

(xiv)        any failure or purported failure of Lender to mitigate damages arising
from a breach, violation or default by Borrower or Guarantor;

 

(xv)         any defense, right of set-off or other claim which Guarantor may have
against Lender, except for claims of actual payment or actual performance of
the Guaranteed Obligations;

 

(xvi)        any failure by Lender to inform Guarantor of any facts Lender may now
or hereafter know about Borrower or the Mortgaged Property, or the terms of the
NYTC Extension Loan Documents or Owner’s Operating Agreement, it being

 

8

 

understood and agreed that Recipients have no duty so to inform and
that Guarantor is fully responsible for being and remaining informed by
Borrower of the risk of non-payment of the Guaranteed Obligations; or

 

(xvii)       any termination of the NYTC Extension Loan Documents or Owner’s
Operating Agreement or any of them, or the exercise of any remedies by Lender
or NYTC Member thereunder, or the sale, transfer, or conveyance of any direct
or indirect interest of Borrower in the Mortgaged Property.

 

(c)           This is a guaranty of payment of debt under
the conditions specifically provided in Sections 2 and 3 of this Guaranty.
Insofar as the Guaranteed Obligations require the payment of money, this
Guaranty is a guaranty of payment and not of collection. Guarantor hereby
waives any and all legal requirements that Lender, or their successors or
assigns, must institute any action or proceeding at law or in equity, or obtain
any judgment, or exhaust their rights, remedies and/or recourses against
Borrower or any other person or entity, or with respect to any security for the
obligations hereby guaranteed, as a condition precedent to making any demand
on, bringing an action against, or obtaining or enforcing any judgment against,
Guarantor upon this Guaranty, and/or that they join Borrower or any other
person or entity as a party to any such action.

 

(d)           All of the remedies set forth herein and/or
provided for in the NYTC Extension Loan Documents or Owner’s Operating Agreement
or at law or equity shall be equally available to Lender and the choice of one
such alternative over another shall not be subject to question or challenge by
Guarantor or any other person, nor shall any such choice be asserted as a
defense, setoff, or failure to mitigate damages in any action, proceeding, or
counteraction by Lender to recover or seeking any other remedy under this
Guaranty, nor shall such choice preclude Lender from subsequently electing to
exercise a different remedy. The parties have agreed to the alternative
remedies provided herein in part because they recognize that the choice of
remedies in the event of a default hereunder will necessarily be and should
properly be a matter of good-faith business judgment, which the passage of time
and events may or may not prove to have been the best choice to maximize
recovery by Lender at the lowest cost to Borrower and/or Guarantor. It is the
intention of the parties that such good-faith choice by Lender be given
conclusive effect regardless of such subsequent developments.

 

(e)           Guarantor hereby acknowledges having
received, reviewed and understood a true, correct and complete copy of each of
the NYTC Extension Loan Documents and Owner’s Operating Agreement. Guarantor
acknowledges that this Guaranty is in effect and binding without reference to
whether this Guaranty is signed by any other person or entity, that possession
of this Guaranty by Lender shall be conclusive evidence of due delivery hereof
by Guarantor and acceptance hereof by Lender, and that this Guaranty shall
continue in full force and effect, both as to guaranteed obligations and
liabilities now existing and/or those hereafter created.

 

9

 

5.             Representations and Warranties. 
Guarantor represents and warrants to Lender as follows: 

 

(a)           Guarantor is a duly organized, validly
existing corporation in good standing under the laws of the State of Ohio and
has full power, authority and legal right to execute and deliver this Guaranty
and to perform fully and completely all of its obligations hereunder.

 

(b)           The execution, delivery and performance of
this Guaranty by Guarantor has been duly authorized by all necessary corporate
action, and will not violate any provision of any law, regulation, order or
decree of any governmental authority, bureau or agency or of any court binding
on Guarantor, or any provision of the by-laws of Guarantor, or of any contract,
undertaking or agreement to which Guarantor is a party or which is binding upon
Guarantor or any of its property or assets, and will not result in the
imposition or creation of any lien, charge or encumbrance on, or security
interest in, any of its property or assets pursuant to the provisions of any of
the foregoing.

 

(c)           This Guaranty has been duly executed and
delivered by a duly authorized officer of Guarantor and constitutes a legal,
valid and binding obligation of Guarantor, enforceable against it in accordance
with its terms.

 

(d)           All necessary resolutions, consents,
licenses, approvals and authorizations of any person or entity required in
connection with the execution, delivery and performance of this Guaranty have
been duly obtained and are in full force and effect.

 

(e)           There are no conditions precedent to the
effectiveness of this Guaranty that have not been either satisfied or waived.

 

(f)            Guarantor has, independently and based on
such documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Guaranty.

 

(g)           There are no actions, suits or proceedings
pending or, to the knowledge of Guarantor, threatened against or affecting
Guarantor nor any judgment rendered against Guarantor, which will have a
material adverse impact upon Guarantor’s ability to perform its obligations hereunder,
or involving the validity or enforceability of this Guaranty, at law or in
equity; and Guarantor is not in default under any order, writ, injunction,
decree or demand of any court or any administrative body having jurisdiction
over Guarantor.

 

(h)           Any and all balance sheets, net worth
statements, income and expense statements, cash flow statements and other
financial statements of, and other financial statements and data relating to,
Guarantor previously or hereafter delivered to Lender fairly and accurately
present, or will fairly and accurately present, the financial condition of
Guarantor as of the dates thereof; since the dates of those most recently
delivered, there has been no material adverse change in the financial condition
of Guarantor; Guarantor has disclosed all events, conditions, and facts known

 

10

 

to
Guarantor which are more likely than not to have a material adverse effect on
the financial condition of Guarantor; and neither this Guaranty nor any
document, financial statement, financial or credit information, certificate or
statement relating to Guarantor and referred to herein, or furnished to Lender
by Guarantor contains, or will contain, any untrue statement of a material fact
or omits, or will omit, a material fact.

 

6.             Waivers.  Guarantor expressly waives
the following:

 

(a)           notice of acceptance of this Guaranty and of
any change in the financial condition of Borrower;

 

(b)           promptness, diligence, presentment and demand
for payment of any of the Guaranteed Obligations;

 

(c)           protest, notice of dishonor, notice of the
performance or non-performance of any of the Guaranteed Obligations, notice of
default and any other notice with respect to any of the Guaranteed Obligations
and/or this Guaranty;

 

(d)           any demand for payment under this Guaranty;

 

(e)           the right to interpose all substantive and
procedural defenses of the law of guaranty, indemnification and suretyship,
except the defenses of prior payment or performance by Borrower of the Guaranteed
Obligations which Guarantor is called upon to pay or perform under this
Guaranty;

 

(f)            all rights and remedies accorded by
applicable law to guarantors, or sureties, including, without being limited to,
any extension of time conferred by any law now or hereafter in effect;

 

(g)           the right to trial by jury in any action or
proceeding of any kind arising on, under, out of, or by reason of or relating,
in any way, to this Guaranty or the interpretation, breach or enforcement
hereof;

 

(h)           the right to interpose any set-off or
counterclaim of any nature or description in any action or proceeding arising
hereunder or with respect to this Guaranty; and

 

(i)            any right or claim of right to cause a
marshaling of the assets of Borrower or to cause Lender to proceed against
Borrower and/or any collateral or security held by Borrower at any time or in
any particular order.

 

7.             Bankruptcy. Notwithstanding anything to the contrary herein, Guarantor’s
liability shall extend to all amounts or other obligations which constitute
part of the Guaranteed Obligations and would be owed by, or required to be
performed by, Borrower under the NYTC

 

11

 

Extension Loan Documents but for the fact that they are unenforceable
or not allowable due to the existence of a bankruptcy, reorganization or
similar proceeding involving Borrower or any other party.  Without limiting the foregoing, neither
Guarantor’s obligation to make payment or otherwise perform in accordance with
this Guaranty nor any remedy for the enforcement thereof shall be impaired,
modified, changed, stayed, released or limited in any manner by any impairment,
modification, change, release, limitation or stay of the liability of Borrower
or any other party or its estate in bankruptcy or any remedy for the
enforcement thereof, resulting from the operation of any present of future
provision of the Bankruptcy Code or other statute or from the decision of any
court interpreting any of the same.

 

8.             Currency of Payments; Interest.

 

(a)           Any
and all amounts required to be paid by Guarantor hereunder shall be paid in
lawful money of the United States of America and in immediately available
funds.  Guarantor agrees that whenever,
at any time, or from time to time, it shall make any payment to Lender on
account of its liability hereunder, it will notify Lender in writing that such
payment is made under this Guaranty for that purpose.

 

(b)           Any
amount payable by Guarantor hereunder which is not paid when due shall bear
interest at the rate of eighteen percent (18 %) per annum from its due date
until repaid, and such interest shall be deemed part of the Guaranteed
Obligations. Notwithstanding any other provision or provisions herein
contained, no provision of this Guaranty shall require or permit the collection
from Guarantor of interest in excess of the maximum rate or amount, if any,
which Guarantor may be required or permitted to pay by any applicable law.

 

9.             Waiver of Rights Against Borrower;
Subordination.

 

(a)           Guarantor
hereby waives all rights of subrogation and any other claims that it may now or
hereafter acquire against Borrower or any insider that arise from the
existence, payment, performance or enforcement of Guarantor’s obligations under
this Guaranty, including, without limitation, any right of reimbursement,
exoneration, contribution or indemnification and any right to participate in
any claim or remedy of Owner or Lender against Borrower or any insider, whether
or not such claim, remedy or right arises in equity or under contract, statute
or common law, including, without limitation, the right to take or receive from
Borrower or any insider, directly or indirectly, in cash or other property or
by set-off or in any other manner, payment or security on account of such
claim, remedy or right.

 

(b)           If
any amount shall be paid to Guarantor in violation of the preceding
subsection (a), such amount shall be held in trust for the benefit of
Lender and shall forthwith be paid to Lender to be credited and applied to all
amounts payable under this Guaranty in accordance with the terms of this
Guaranty, or to be held as collateral for any amounts payable under this
Guaranty thereafter arising.  Guarantor
acknowledges that it has and will receive

 

12

 

substantial benefit from the making of the NYTC Extension Loan and that
the waiver set forth in this subsection is knowingly made in contemplation
of such benefits.

 

(c)           All
indebtedness, liabilities and obligations of Borrower to Guarantor, whether
secured or unsecured and whether or not evidenced by any instrument, now
existing or hereafter created or incurred, are and shall be subordinate and
junior as to lien, time of payment and in all other respects to the Guaranteed
Obligations

 

(d)           Guarantor
agrees that, following any default or event of default by Borrower in the
payment of the Guaranteed Obligations, and until the Guaranteed Obligations
shall have been paid in full, Guarantor will not accept any payment or
satisfaction of any kind of any indebtedness or obligation of Borrower to
Guarantor. Further, as long as Guarantor remains liable hereunder, Guarantor
agrees that, if, following any default or event of default by Borrower in the
payment of the Guaranteed Obligations, Guarantor should receive any payment,
satisfaction or security for any indebtedness or obligation of Borrower to
Guarantor, the same shall be delivered to Lender in the form received, endorsed
or assigned as may be appropriate, for application on account of or as security
for the Guaranteed Obligations, and, until so delivered, shall be held in trust
for Lender as security for said obligations. 
In addition, at any time, in the event of any receivership, insolvency,
bankruptcy, assignment for the benefit of creditors, reorganization or
arrangement with creditors (whether or not pursuant to bankruptcy laws), sale
of all or substantially all of the assets, dissolution, liquidation or any
other marshaling of the assets and liabilities of Borrower, Lender shall be
entitled to performance in full of the obligations hereby guaranteed prior to
the payment of all or any part of any indebtedness of Borrower to Guarantor,
and Guarantor will, at the request of Lender, file any claim, proof of claim or
other instrument of similar character necessary to enforce the obligations of
Borrower in respect of such indebtedness and hereby assigns to Lender, and will
hold in trust for Lender, any and all monies, dividends or other assets
received in any such proceeding on account of such obligations, unless and
until the obligations hereby guaranteed shall be irrevocably performed in full.
In the event Guarantor fails to perform said obligations, it shall pay and
deliver said monies, dividends or other assets to Lender.

 

10.           Amendment
in Writing.  No amendment or waiver of any provision of
this Guaranty nor consent to any departure by Guarantor therefrom shall in any
event be effective unless the same shall be in writing and signed by Guarantor
and Lender, and then such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

 

11.           Remedies. The obligations of Guarantor under this
Guaranty are independent of Borrower’s obligations under the NYTC Extension
Loan Documents, and a separate action or actions may be brought and prosecuted
against the Guarantor to enforce this Guaranty, irrespective of whether any
action is brought against Borrower or whether Borrower is joined in any such
action or actions. Any one or more successive and/or concurrent actions may be

 

13

 

brought hereon against Guarantor either in the same action, if any,
brought against Borrower or in separate actions, as often as Lender, in its
sole discretion, may deem advisable.

 

12.           Certified
Statement.  Guarantor agrees that it will, at any time
and from time to time, within ten (10) days following request by Lender,
execute and deliver to Lender a statement certifying that this Guaranty is
unmodified and in full force and effect (or if modified, that the same is in
full force and effect as modified and stating such modifications).

 

13.           Notices. All notices and other communications which
may be or are desired to be given hereunder shall be in writing and shall be
hand delivered, sent by registered U.S. Mail, return receipt requested, or sent
by overnight courier service, designated for next-day delivery, as follows:

 

If to Guarantor:

 

Forest City Enterprises, Inc.

1160 Terminal Tower

50 Public Square

Cleveland, Ohio 44113-2267

Attention: General Counsel

 

With a copy to:

 

Forest City Ratner Companies

One MetroTech Center North

Brooklyn, New York 11201

Attention: David Berliner, Esq.

 

And to:

 

Kelley Drye & Warren LLP

101 Park Avenue

New York, New York 10178

Attention: James J. Kirk, Esq.

 

If to Lender:

 

[Lender]

c/o The New York Times Company

229 West 43rd Street

New York, New York 10036

Attention: General Counsel

 

14

 

With a copy to:

 

[Lender]

c/o The New York Times Company

229 West 43rd Street

New York, New York 10036

Attention: Director of Real Estate

 

And to:

 

Swidler Berlin Shereff Friedman, LLP

The Chrysler Building

405 Lexington Avenue

New York, New York 10174

Attention:  Martin D. Polevoy, Esq.

 

Any party hereto may designate a different address
to which or person to whom notices or demands shall be directed by written
notice given in the same manner and directed to the other at its address
hereinabove set forth. Any notice given hereunder shall be deemed received when
delivered if delivered by hand, one (1) Business Day (as hereinafter defined)
after delivery if sent overnight delivery service, designated for next-day
delivery, and three (3) Business Days after mailing if sent by registered U.S.
mail, provided, however, that rejection or other refusal to accept or the
inability to deliver because of changed address of which no notice was given as
herein required shall be deemed to be receipt of the notice, demand or request
sent.

 

As used in this Guaranty, the term “Business
Day” means any day which is not a Saturday, a Sunday or a day observed as a
holiday by either the State of New York or the federal government of the United
States.

 

14.           Termination
of Guaranty; Successors and Assigns. This Guaranty shall

 

(a)           remain
in full force and effect:

 

(i)            with respect to any Bankruptcy Triggering
Event, until payment and performance in full of the Guaranteed Obligations
applicable to a Bankruptcy Triggering Event and the expiration of all
applicable periods under the laws governing bankruptcy, insolvency, fraudulent
conveyances and creditor’s rights during which any payment made by Guarantor or
Borrower with respect to the Guaranteed Obligations may be required to be
disgorged or repaid by Lender; and

 

(ii)           with respect to any Non-Conveyance Triggering Event, until payment and
performance in full of the Guaranteed Obligations applicable to a

 

15

 

Non-Conveyance Triggering Event or such earlier date as Borrower takes
all actions required in connection with the Required Conveyance Action
(provided that, in the case of a Required Conveyance Action which is not made
within ten (10) days after delivery of a Demand Notice, Lender elects to accept
such Required Conveyance Action, it being acknowledged and agreed that Lender
shall not be under any obligation to accept a Required Conveyance Action which
is not made within ten (10) days after delivery of a Demand Notice and that
Lender may refuse to accept a Required Conveyance Action which is not made
within ten (10) days after delivery of a Demand Notice in its sole and absolute
discretion),

 

and,
in either case, the expiration of all applicable periods under the laws
governing bankruptcy, insolvency, fraudulent conveyances and creditor’s rights
during which any payment made by Guarantor or Borrower with respect to the
Guaranteed Obligations may be required to be disgorged or repaid by Lender or
any action taken by Borrower in connection with the Required Conveyance Action
may be voided, as the case may be. In addition, this Guaranty shall be
automatically reinstated if, following the Required Action, Borrower or
Guarantor shall take any actions, steps or procedures which might delay, impede
or preclude NYTC (or its designee) from recording the conveyance instruments
with respect to the Mortgaged Property, taking possession of the Mortgaged
Property or collecting rents from occupants of the Mortgaged Property, whether
the Mortgaged Property is transferred pursuant to the conveyance instruments or
the judgment of foreclosure referred to in subparagraph 3(d) of this Guaranty;

 

(b)           be binding upon Guarantor and its successors, transferees and permitted
assigns; and

 

(c)           inure to the benefit of and be enforceable by Lender and its
successors, transferees and assigns.

 

Wherever in this Guaranty reference is made to Guarantor or Lender, the
same shall be deemed to refer also to the then successor or assign of Guarantor
or Lender. Notwithstanding anything herein to the contrary, Guarantor shall not
have the right to assign this Guaranty or delegate its obligations without the
prior written consent of Lender, which may be withheld in Lender’s sole and
absolute discretion, and any purported assignment in violation of the foregoing
clause shall be null and void as against Lender.

 

15.           Governing
Law.

 

(a)           This
Guaranty shall be governed by, and construed in accordance with, the laws of
the State of New York applicable to agreements made and to be performed
entirely within said state, without giving effect to conflict of laws principles
thereof.

 

16

 

(b)           Guarantor
hereby irrevocably submits to personal jurisdiction in the State of New York
for the enforcement of this Guaranty and waives any and all rights to object to
such jurisdiction for the purposes of litigation to enforce this Guaranty.
Guarantor hereby consents to the jurisdiction of either any court of the State
of New York or (in a case involving diversity of citizenship) the United States
District Court where the Project is located, in any action, suit, or proceeding
which Lender may at any time wish to file in connection with this Guaranty or
any related matter. Guarantor hereby agrees that an action, suit, or proceeding
to enforce this Guaranty may be brought in any State or Federal court in the
State of New York and hereby waives any objection which Guarantor may have to
the laying of the venue of any such action, suit, or proceeding in any such
court; provided, however, that the provisions of this subparagraph 14(b) shall
not be deemed to preclude Lender from filing any such action, suit, or
proceeding in any other appropriate forum.

 

16.           Severability.  If
any term, covenant, condition or provision of this Guaranty or the application
thereof to any circumstance or to Guarantor shall be invalid or unenforceable
to any extent, the remaining terms, covenants, conditions and provisions of
this Guaranty or the application thereof to any circumstances or to Guarantor
other than those as to which any term, covenant, condition or provision is held
invalid or unenforceable, shall not be affected thereby and each remaining
term, covenant, condition and provision of this Guaranty shall be valid and
shall be enforceable to the fullest extent permitted by law.

 

17.           Headings. The headings used in this Guaranty are for
convenience only and are not to be considered in connection with the
interpretation or construction of this Guaranty.

 

18.           Enforcement
Costs. If: (i) this Guaranty
is placed in the hands of an attorney for collection or is collected through
any legal proceeding; (ii) an attorney is retained to represent Lender in any
bankruptcy, reorganization, receivership, or other proceedings affecting
creditors’ rights and involving a claim under this Guaranty; or (iii) an
attorney is retained to represent Lender in any proceedings whatsoever in
connection with this Guaranty, then Guarantor shall pay to Lender upon demand
all attorneys’ fees, costs and expenses, including, without limitation, court
costs, filing fees, recording costs, and all other costs and expenses incurred
in connection therewith (all of which are referred to herein as “Enforcement
Costs”), in addition to all other amounts due hereunder, regardless of
whether all or a portion of such Enforcement Costs are incurred in a single
proceeding brought to enforce this Guaranty.

 

17

 

IN WITNESS WHEREOF, Guarantor has executed
and delivered this Guaranty as of the date first above written.

 

	
   

  	
  GUARANTOR:

  
	
   

  	
   

  
	
   

  	
  FOREST
  CITY ENTERPRISES, INC., an Ohio

  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

18

 

EXHIBIT A

 

FORM OF 10-DAY NOTICE

 

[Lender]

c/o The New York Times Company

229 West 43rd Street

New York, New York 10036

 

Date:              

 

FC
Lion LLC

[ADDRESS FOR NOTICES

IN NYTC EXTENSION LOAN

MORTGAGE]

 

Forest City Enterprises, Inc.

1160 Terminal Tower

50 Public Square

Cleveland, Ohio 44113

Attention: General Counsel

 

Ladies and Gentlemen:

 

Notice is herewith given that FC Lion LLC as “Borrower” under (i) that
certain Modification of Substitute Extension Loan Note (the “Note”)
dated                2001
and (ii) that certain Modification of Substitute Extension Loan Mortgage and
Security Agreement (Leasehold), (the “Mortgage”)
dated                ,
2001, which documents, among others, evidence and secure that certain loan in
the original principal amount of $
                                from
[Lender] (“Lender”) to Borrower (the “NYTC Extension Loan”), is in default of
its obligations regarding payments of interest and/or principal under the NYTC
Extension Loan.

 

Specifically, Borrower has failed to make payments of [interest
required under the Note in the aggregate amount of
$                ,]
[plus interest accruing subsequent to                 ;]
[and Borrower has failed to make payments of principal under the Note in the
aggregate amounts of
$                .](1)

 

If this default is not cured within ten (10) days after delivery of
this Notice, in addition to any other rights and remedies that the Lender may
have (with or without the giving of notice) under the Note, the Mortgage or any
other document evidencing or securing the NYTC

 

(1) Specific defaults to be described.

 

A-1

 

Extension Loan, by way of acceleration of the obligations or otherwise,
Lender may exercise all of its rights and remedies set forth in that certain
Guaranty dated                from Forest City Enterprises, Inc. to Lender
(the “Guaranty”), subject to the terms therein.

 

This Notice shall satisfy in all respects the “10-Day Notice”
requirement under paragraph 3(d) of the Guaranty.

 

Capitalized terms used but not otherwise defined herein shall have the
meanings described to such terms in the Guaranty.

 

	
   

  	
  Yours
  very truly,

  
	
   

  	
   

  
	
   

  	
  [LENDER]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: 

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

 

copy to:

 

Kelley Drye & Warren
LLP

101 Park Avenue

New York, New York 10178

Attention: General Counsel

 

A-2

 

EXHIBIT B

FORM OF 5-DAY NOTICE

 

[Lender]

c/o The New York Times Company

229 West 43rd
Street

New York, New York 10036

 

Date:               

 

FC Lion LLC

[ADDRESS FOR NOTICES

IN NYTC EXTENSION LOAN

MORTGAGE]

 

Forest
City Enterprises, Inc.

1160 Terminal Tower

50 Public Square

Cleveland, Ohio 44113

Attention: General Counsel

 

Ladies and Gentlemen:

 

Notice is herewith given that FC Lion LLC as “Borrower” under (i) that
certain Modification of Substitute Extension Loan Note (the “Note”)
dated                 2001
and (ii) that certain Modification of Substitute Extension Loan Mortgage and
Security Agreement (Leasehold), (the “Mortgage”)
dated              ,
2001, which documents, among others, evidence and secure that certain loan in the
original principal amount of
$                       from
[Lender] to Borrower (the “NYTC Extension Loan”), is in default of its
obligations regarding payments of interest or principal under the NYTC
Extension Loan AND such default has continued beyond the expiration of the
10-day cure period referred to in the notice of default to Borrower and
Guarantor
dated                   .

 

Specifically, Borrower has failed to make payments of: [interest
required under the Note in the aggregate amount of
$                          ,]
[plus interest accruing subsequent
to                          ;]
[and Borrower has failed to make payments of principal under the Note in the
aggregate amounts of
$                        .](2)

 

(2)Specific defaults to be described.

 

B-1

 

If this default is not cured within five (5) days after delivery of
this Notice, in addition to any other rights and remedies that the Lender may
have (with or without the giving of notice) under the Note, the Mortgage or any
other document evidencing or securing the NYTC Extension Loan, by way of
acceleration of the obligations or otherwise, Lender may exercise all of its
rights and remedies set forth in that certain Guaranty dated                        from Forest City Enterprises, Inc. to Lender
(the “Guaranty”), subject to the terms therein.

 

This Notice shall satisfy in all respects the “5-Day Notice”
requirement under Paragraph 3(d) of the Guaranty.

 

Capitalized terms used but not otherwise defined herein shall have the
meanings ascribed to such terms in the Guaranty.

 

	
   

  	
  Yours
  very truly,

  
	
   

  	
   

  
	
   

  	
  [LENDER]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: 

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

 

copy to:

 

Kelley Drye & Warren LLP

101 Park Avenue

New York, New York 10178

Attention: General Counsel

 

B-2

 

EXHIBIT C

FORM OF CONVEYANCE DOCUMENTS

 

[See attached Assignment and Assumption
Agreement.  In addition, Borrower to
execute transfer

tax returns in form satisfactory to Lender’s title insurance company reflecting
Borrower’s

payment of transfer taxes and such other documents as may be required by
Lender’s title

insurance company to record Assignment and Assumption Agreement.]

 

C-1

 

This ASSIGNMENT AND ASSUMPTION AGREEMENT (the “Assignment”) dated as of                        ,
20         by and between FC LION
LLC (“Assignor”), a New York limited liability Landlord, having an office at
                                           
and [LENDER OR ITS DESIGNEE] (“Assignee”), a                        having an office c/o The New York Times
Company, 229 West 43rd Street, New York, New York 10036.

 

WITNESSETH:

 

WHEREAS, Assignor is the tenant under those certain Agreements of
Sublease more particularly described on Exhibit 1 annexed hereto (collectively,
the “Subleases”) affecting a portion of the property more particularly
described in Exhibit 2 attached hereto and hereby made a part hereof and the
improvements located thereon;

 

WHEREAS, Assignor wishes to assign all of its right, title and interest
in and to the Subleases to Assignee, and Assignee wishes to assume all such
right, title and interest from and after the effective date of such assignment.

 

NOW, THEREFORE, in consideration of the foregoing and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby covenant and agree as follows:

 

1.             Capitalized terms used herein without
definition shall have the respective meanings ascribed thereto in the
Subleases. References herein to any document or instrument shall refer to the
same as it may be amended, modified, supplemented, extended, renewed or
assigned.

 

2.             Assignor hereby assigns, grants, bargains,
sells and transfers all of its right, title and interest in and to the
Subleases, together with any and all amendments, extensions and renewals
thereof, and together with all rights and obligations accrued or to accrue
under said Subleases, to Assignee and its successors and assigns, TO HAVE AND
TO HOLD the same unto Assignee, its successors and assigns, from the date hereof,
for all the rest of the term of the Subleases.

 

3 .            Assignee hereby assumes and agrees to perform
and comply with all of the covenants and conditions of the Subleases to be
performed or complied with by the tenant thereunder on and after the date hereof,
as if Assignee had originally executed the Ground Lease as the tenant
thereunder.

 

4.             This Assignment shall be binding on and inure
to the benefit of the parties hereto and their respective successors and
assigns.

 

5.             This Assignment shall be governed by, and
construed in accordance with

 

C-2

 

the laws of the State of New York.

 

6.             This Assignment may be executed in
counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.

 

IN WITNESS WHEREOF, the parties hereto have signed and delivered this
Assignment as of the date first set above.

 

	
   

  	
  ASSIGNOR:
  

  
	
   

  	
   

  
	
   

  	
  FC
  LION LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name: 

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
   

  	
  [LENDER
  OR ITS DESIGNEE]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name: 

  
	
   

  	
  Title:

  

 

C-3

 

	
  STATE
  OF NEW YORK

  	
  )

  	
   

  
	
   

  	
  )

  	
  ss.:
  

  
	
  COUNTY
  OF NEW YORK

  	
  )

  	
   

  

 

 

On
the            day
of                       ,
in the year 20       , 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 executed the same in her capacity, and that by her
signature on the instrument, the individual, or the person upon behalf of which
the individual acted, executed the instrument.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Notary
  Public

  
	
   

  	
  Commission
  Expires

  

 

 

	
  STATE
  OF NEW YORK

  	
  )

  	
   

  
	
   

  	
  )

  	
  ss.:
  

  
	
  COUNTY
  OF NEW YORK

  	
  )

  	
   

  

 

On
the            day
of                       in
the year 20       , before me, the
undersigned, a Notary Public in and for said State, personally
appeared                                    ,
personally known to me or proved to me on the basis of satisfactory evidence to
be the individual(s) whose name(s) is (are) subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their
capacity(ies), and that by his/her/their signature(s) on the instrument, the
individual(s), or the person upon behalf of which the individual(s) acted,
executed the instrument.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Notary
  Public

  
	
   

  	
  Commission
  Expires

  

 

C-4

 

Exhibit 1
to Assignment and Assumption Agreement

 

RETAIL SUBLEASE

 

Agreement of Sublease by and between The New York Times Building, LLC,
Landlord, and FC Lion LLC, Tenant, dated as
of             ,
2001, a memorandum of which was recorded in the Office of the Register of the
City of New York, New York County
on             ,
2001, as amended by [Amendment]
dated             ,
200      , a memorandum of which [Amendment] was
recorded in the Office of the Register of the City of New York, New York County
on             ,
200     , the Landlord’s interest in which Agreement of
Sublease has been assigned to 42nd St. Development Project, Inc. by Assignment
and Assumption Agreement dated
                ,
200     , between The New York Times Building, LLC,
assignor, and 42nd St. Development Project, Inc., assignee.

 

OFFICE SUBLEASE

 

Agreement of Sublease by and between The New York Times Building, LLC,
Landlord, and FC Lion LLC, Tenant, dated as
of             ,
2001, a memorandum of which was recorded in the Office of the Register of the
City of New York, New York County
on             ,
2001, as amended by [Amendment]
dated             ,
200    , a memorandum of which [Amendment] was recorded in
the Office of the Register of the City of New York, New York County
on             
, 200     , the Landlord’s interest in which Agreement
of Sublease has been assigned to 42nd St. Development Project, Inc. by
Assignment and Assumption Agreement dated
                 ,
200   , between The New York Times Building, LLC, assignor, and
42nd St. Development Project, Inc., assignee.(3) 

 

(3)Revise as necessary if there are multiple Office Severance
Subleases.

 

C-5

 

Exhibit 2 to Assignment and
Assumption Agreement

 

DESCRIPTION OF PROPERTY

 

[Land Description
from Condominium Declaration]

 

C-6

 

EXHIBIT D

 

FORM OF
FORECLOSURE DOCUMENTS

 

	
  SUPREME
  COURT OF THE STATE OF NEW YORK

  
	
  COUNTY
  OF NEW YORK

  	
  x

  

 

	
  [LENDER],

  	
   

  	
  Index No.

  
	
   

  	
   

  	
   

  
	
   

  	
  Plaintiff,

  	
   

  
	
   

  	
   

  	
   

  
	
   -against-

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  FC
  LION LLC,

  	
   

  	
  STIPULATION

  
	
   

  	
   

  	
  OF
  SETTLEMENT

  
	
   

  	
  Defendant.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  x

  	
   

  
				

 

WHEREAS, plaintiff [LENDER] (“NYT”) shall commence a foreclosure action
(the “Foreclosure Action”) by filing a summons and verified complaint (the
“Foreclosure Complaint”) with respect to a Mortgage (hereinafter defined) on
the leasehold interest in certain improved real property located at [Site 8
South], New York, New York (the “Mortgaged Premises”), as such property is
described more particularly in Exhibit A hereto, naming as a defendant, FC Lion
LLC (“Borrower”); and

 

WHEREAS, Borrower borrowed the sum of
[             ]
from NYT, which loan, together with interest thereon, was evidenced by a
certain Modification of Substitute Extension Loan Note dated [                              ]
(the “Note”) whereby Borrower was bound and promised to repay to NYT said sum
with interest thereon at the rate provided in the Note, and

 

D-1

 

WHEREAS, Borrower, as collateral security for the payment of the
indebtedness evidenced by the Note, executed, acknowledged and delivered to
NYT, that certain Modification of Substitute Extension Loan Mortgage and
Security Agreement (Leasehold) dated [             ] (the “Mortgage”); and

 

WHEREAS, Forest City Enterprises, Inc., a corporation organized under
the laws of the State of Ohio, as an inducement to NYT to make the loan
evidenced by the Note, executed and delivered that certain Guaranty dated [             ] (the “Guaranty”); and

 

WHEREAS, Borrower defaulted under the terms of the Note and Mortgage in
that Borrower failed to pay to NYT the installments of principal and interest
due on [             ] (for interest period [             ] through [             ] and thereafter; and

 

WHEREAS, NYT notified Borrower of its defaults under the Note and the
Mortgage and, upon Borrower’s failure to cure the defaults, NYT has accelerated
and declared immediately due and payable the entire unpaid principal balance of
the Note, to wit, the sum of [            ], with interest, late charges and other fees
(including attorneys’ fees) as provided in the Note, the Mortgage and Guaranty.

 

NOW, THEREFORE, it is hereby stipulated and agreed by and between the
undersigned as follows:

 

1.             The recitals set forth hereinabove are true,
accurate and incorporated herein by reference as if repeated at length herein.

 

2.             Borrower acknowledges, agrees and admits that
it is in default under the Note and that the following amounts are due and
owing to NYT under the Note and Mortgage, without defense, offset or
counterclaim:  (i) the outstanding
principal balance in the sum of [             ];

 

D-2

 

(ii) outstanding interest arrears through
[             200   ]
in the sum of
[             ];
(iii) late charges of
[             ];
(iv) insurance premiums, fees (including attorneys’ fees) and other expenses of
[             ];
(v) interest on
[                          ]
from and after
[             ]
at the rate of
[             ]
per diem; and (vi) additional expenses reimbursable under the Note, the
Mortgage and Guaranty (such as taxes, assessments and penalties, if any, with
respect to the Mortgaged Premises, insurance premiums, costs for maintenance,
protection and preservation of the Mortgaged Premises, appraisal and
environmental fees, legal fees, Court costs and disbursements and any
additional allowances pursuant to CPLR 8302 or 8303 or any successor
statute(s)). 

 

3.             Borrower hereby:

 

(a)           ratifies and confirms the jurisdiction of
this Court, acknowledges and admits due and proper service upon it of a copy of
the summons and the Foreclosure Complaint in the Foreclosure Action and waives
service of all papers and notices of all proceedings in the Foreclosure Action;

 

(b)           irrevocably, unconditionally and with
prejudice waives and releases all defenses, affirmative defenses, set-offs and
counterclaims, in fact, law or equity, to or relating to the Foreclosure
Complaint, the Foreclosure Action, the Note and the Mortgage;

 

(c)           assigns and transfers to NYT all security
deposits held for the Mortgaged Premises, or any portion thereof, agrees to
promptly provide to the tenants of the Mortgaged Premises notice of the
transfer to NYT, and delivers to NYT possession, custody and control of the
Mortgaged Premises along with all records, rents, keys, equipment, fixtures and
supplies attendant thereto (“Possession”);

 

D-3

 

(d)           consents to the immediate entry, on the terms
and conditions hereinafter set forth, of (i) a judgment of foreclosure and
sale, on consent, in the form annexed hereto as Exhibit B (the “Judgment of
Foreclosure”), to the computation of the indebtedness contained therein and to
the immediate sale at public auction of the Mortgaged Premises in accordance with
the terms thereof;

 

(e)           agrees that, other than as specifically
contemplated hereunder, it shall take no actions, steps or procedures which
might delay, impede or preclude (i) NYT from taking Possession of the Mortgaged
Premises and collecting rents from occupants of the Mortgaged Premises, the
Mortgaged Premises is transferred pursuant to the Judgment of Foreclosure or
otherwise, and (ii) NYT from causing the Judgment of Foreclosure to be duly and
promptly entered; and

 

(f)            admits there are no defenses, affirmative
defenses, set-offs or counterclaims with respect to the Note and the Mortgage,
that all of the provisions of each of the foregoing documents are valid,
binding, enforceable and unimpaired in accordance with their terms and are
hereby ratified and confirmed.

 

4.             Borrower agrees to cooperate with NYT in
taking all steps (including furnishing testimony, where necessary) and
executing or furnishing all documents and affidavits requested by NYT and/or as
may be necessary for the submission and entry of the Judgment of Foreclosure
and the turnover and surrender of possession, custody and control of the
Mortgaged Premises in accordance with the terms thereof.

 

5.             Borrower hereby represents, warrants and
covenants to NYT that Borrower’s execution of this Stipulation and the
performance by Borrower of its obligations hereunder (i) has been duly and
properly authorized by all requisite corporate acts, and (ii) has been duly
authorized and approved by the requisite Courts, municipal officers,
governmental officials or third-parties, and

 

D-4

 

(iii)
will not violate any contract, document, understanding, agreement or instrument
to which Borrower is a party or by which Borrower or the Mortgaged Premises
might be bound or affected.

 

6.             Borrower hereby acknowledges, agrees and
consents that NYT is entitled forthwith, and without objection, interference,
delay or restraint by or on behalf of Borrower, to execute immediately upon the
Judgment of Foreclosure for the full amount thereof and to cause the immediate
sale of the Mortgaged Premises at public auction. Upon a default by Borrower in
any of its obligations hereunder or if any of the Representations is false or
misleading, NYT shall be entitled, in addition to the sale of the Mortgaged
Premises at public auction, to enter a deficiency judgment against Borrower for
the difference between the amount set forth in the Judgment of Foreclosure and
the amount of the successful bid at the public auction of the Mortgaged Premises
(such sum conclusively representing the value of the Mortgaged Premises in
accordance with Section 1371 of the Real Property Actions and Proceedings
Law).

 

7.             Borrower and Guarantor hereby unconditionally
and irrevocably releases and forever discharges NYT, its officers, directors,
employees, agents, attorneys, representatives, successors and assigns from and
against any and all rights, claims, causes of action, damages, liabilities and
obligations of any nature or kind whatsoever arising out of or in connection
with the Note, the Mortgage, the Guaranty and/or the Mortgaged Premises. NYT
hereby unconditionally and irrevocably releases and forever discharges Borrower
and Guarantor, their respective officers, directors, employees, agents,
attorneys, representatives, successors and assigns from and against any and all
rights, claims, causes of action, damages, liabilities and obligations of any
nature or kind whatsoever arising out of or in connection with the Note, the
Mortgage, the Guaranty and/or the Mortgaged Premises, provided, however, that
such release shall not be deemed to discharge

 

D-5

 

Borrower and Guarantor of their respective representations, warranties
and obligations, made or covenanted to under this Stipulation.

 

8.             No failure or delay by NYT to exercise 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 hereunder.

 

9.             The parties executing this Stipulation and
ancillary documents hereby represent that (i) they have read and reviewed this
Stipulation and all ancillary documents with their independent counsel and they
understand and consent to the terms and provisions hereof; and (ii) this
Stipulation and the Judgment of Foreclosure when executed by the parties
hereto, will be the legal, valid and binding obligations of the parties hereto
enforceable in accordance with their respective terms and duly authorized by
all requisite corporate acts.   This
Stipulation may not be amended except in a writing signed by the parties hereto
and this Stipulation shall be governed by and construed in accordance with the
laws of the State of New York. In the event any one or more of the provisions
of this Stipulation shall for any reason be invalid, illegal or unenforceable
in any respect, such invalidity, illegality, or unenforceability shall not
affect any other provision of this Stipulation, but this Stipulation shall be
construed as if such invalid, illegal or unenforceable provision had never been
contained herein.

 

10.           This Stipulation shall inure to the benefit
of and shall be binding upon the parties hereto and their respective legal
representatives, successors and assigns. Nothing in this Stipulation, express
or implied, is intended to confer on any person other than the parties hereto,
or

 

D-6

 

their respective legal representatives, successors and assigns, any
rights, remedies, obligations or liabilities.

 

11.           This Stipulation may be executed in separate
counterparts, which, together, shall constitute one and the same fully executed
Stipulation.

 

12.           This Stipulation sets forth the entire
understanding of the parties with respect to the subject matter of this
Stipulation. Neither party has made to the other party, with respect to the
subject matter of this Stipulation, any representation or warranty, oral or
written, express or implied in fact or by law except as set forth in or
required by this Stipulation.  Neither
party is entering into this Stipulation in reliance upon, or is concerned with
the accuracy or completeness of, anything, oral or written, expressed or given
to it by the other party, except as set forth in this Stipulation.

 

D-7

 

IN WITNESS WHEREOF, this Stipulation has been executed and delivered as
of the         day of
[                   ],
2001.

 

 

	
   

  	
  FC
  LION LLC:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [LENDER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  FOREST
  CITY ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

D-8

 

	
  STATE
  OF NEW YORK

  	
  )

  	
   

  	
   

  	
   

  
	
   

  	
  )

  	
  ss.:
  

  	
   

  	
   

  
	
  COUNTY
  OF NEW YORK

  	
  )

  	
   

  	
   

  	
   

  

 

On the
                    
day of
[              ],
2001, 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 whose name is subscribed to the within instrument and acknowledged to me
that he executed the same in his capacity, and that by his signature on the
instrument, the person, or the entity upon behalf of which the person acted,
executed the instrument.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Notary Public

  	
   

  

 

 

	
  STATE
  OF NEW YORK

  	
  )

  	
   

  	
   

  	
   

  
	
   

  	
  )

  	
  ss.:
  

  	
   

  	
   

  
	
  COUNTY
  OF NEW YORK

  	
  )

  	
   

  	
   

  	
   

  

 

On
the               day
of
[               ],
2001, 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 whose name is subscribed to the within instrument and acknowledged to me
that he executed the same in his capacity, and that by his signature on the instrument,
the person, or the entity upon behalf of which the person acted, executed the
instrument.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Notary Public

  	
   

  

 

On
the                    day
of [            ],
2001, 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 whose name is subscribed to the within instrument and acknowledged to me
that he executed the same in his capacity, and that by his signature on the
instrument, the person, or the entity upon behalf of which the person acted,
executed the instrument.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Notary Public

  	
   

  

 

D-9

 

Exhibit A to
Stipulation of Settlement

 

DESCRIPTION OF
MORTGAGED PROPERTY

[From Extension Loan Mortgage]

 

D-10

 

Exhibit
B to Stipulation of Settlement 

 

JUDGMENT OF
FORECLOSURE AND SALE

(See Attached)

 

D-11

 

At IAS Part          of
the Supreme Court of the State of New York, held in and for the County of New
York, at the Courthouse, 60 Centre Street, New York, New York, on
the         day of
         ,
2001         

 

 

	
  PRESENT:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hon.                        ,

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Justice.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  x

  	
   

  
	
  [LENDER],

  	
   

  	
   

  	
  Index No.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Plaintiff,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   -against-

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FC
  LION LLC, [names of other defendants to be inserted], THE PEOPLE OF THE STATE
  OF NEW YORK, THE CITY OF NEW YORK, JOHN DOE NOS. 1-100, JOHN DOE COMPANY NOS.
  1-100 and JOHN DOE CORPORATION NOS. 1-100, The Names of the “John Doe”
  Defendants Being Fictitious and Unknown to Plaintiff, the Persons and Firms
  Intended Being Those Who May Be in Possession of, or May Have a Possessory,
  Lien or Other Interests in, the Premises Herein Described.

  	
   

  	
  JUDGMENT OF

  FORECLOSURE AND SALE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Defendant.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  x

  	
   

  
									

 

Upon the summons, verified complaint and notice of pendency heretofore
filed in this action on
                   
,                      the
affidavit of regularity of
[                     ],
sworn
to                     ,                     showing
that each of the defendants herein has been duly served with a copy of the
summons and verified complaint in this action, or has appeared herein by their
attorneys; the stipulation of settlement by and between plaintiff and defendant
FC Lion

 

D-12

 

LLC (“Borrower”)
dated                   (the
“Stipulation”), and upon all papers and proceedings heretofore had herein, from
all of which it appears that this action was brought to foreclose, and that
Borrower consents to the foreclosure of, that certain leasehold mortgage dated
[                     ]
(the “Mortgage”), given as security for that certain note in the original
principal sum of
[                     ]
(the “Note”), on certain property located at [Site 8 South], New York, New
York, and more particularly described in the Mortgage (the “Mortgaged
Premises”), and that (i) the outstanding principal balance in the sum of
[                     ];
(ii) outstanding interest arrears through
[                     ]
in the sum of
[                     ];
(iii) late charges of [                     ];
(iv) insurance premiums, fees (including attorneys’ fees) and other expenses of
[                     ];
(v) interest on
[                     ]
from and after [                           ]
at the rate
of[                     ]
per diem; and (vi) additional expenses reimbursable under the Note and Mortgage
(such as taxes, assessments and penalties, if any, with respect to the
Mortgaged Premises, insurance premiums, costs for maintenance, protection and
preservation of the Mortgaged Premises, appraisal and environmental fees, legal
fees, Court costs and disbursements and any additional allowances pursuant to
CPLR 8302 or 8303) are now due and payable; that all of the defendants herein
have been duly served with a copy of the summons and verified complaint; that
Borrower has appeared herein through its attorneys, [                                          ],
waived service of all papers herein and consents to this judgment of
foreclosure and sale upon the terms and conditions hereinafter set forth by
subjoining its consent hereto; that the time to move or answer with the respect
to the complaint has expired and that no answer or motion directed to the
complaint or otherwise has been interposed except by Borrower, who has
consented to this judgment of foreclosure, and that the

 

D-13

 

time to do so has not been extended by order of this Court; and that
the defendant, other than as previously set forth, is in default in answering
the complaint; and that the defendant is not an infant, incompetent or
absentee; and that the notice of pendency heretofore filed has been on file for
twenty (20) days or more and contains correctly and truly all of the
particulars required by law to be stated in such notice.

 

NOW, on the motion of SWIDLER BERLIN SHEREFF FRIEDMAN, LLP, attorneys
for plaintiff, it is

 

ORDERED, ADJUDGED AND DECREED that plaintiff is entitled to have
judgment herein for the sum of
[                     ],
together with interest on the outstanding principal sum of
[                     ]
at the rate of
[                     ]
per diem from
[                     ]
until the date of judgment and thereafter at the legal rate until payment is
made to plaintiff, together with any expenses paid or incurred by plaintiff
pursuant to the Mortgage not previously included in the above computations from
[                     ]
until payment is made to plaintiff, with interest thereon at the contract rate,
besides the sum of $                     as
taxed by the Clerk of the Court and hereby adjudged to plaintiff for costs and
disbursements in this action, with interest thereon from the date hereof,
together with an additional allowance of
[                     ]
hereby awarded to plaintiff in addition to costs and disbursements, with
interest thereon from the date hereof; and it is further

 

ORDERED, ADJUDGED AND DECREED that the Mortgaged Premises described in
the complaint in this action and as hereafter described, or such part thereof
as may be sufficient to discharge the mortgage debt, the expenses of the sale
and the costs of this action as provided by the Real Property Actions and
Proceedings Law be sold, in one parcel, at public auction at the “rotunda” of
the Courthouse, 60 Centre St., New York, New York 10007 by and

 

D-14

 

under the direction of                                          who is hereby appointed Referee for that
purpose; that the said Referee give public notice of the time and place of such
sale in accordance with RPAPL §231 in                                          and that the plaintiff or any other parties
to this action may become the purchaser or purchasers at such sale; that in
case plaintiff, its assignee, designee or nominee, shall become the purchaser
at such sale, it shall not be required to make any deposit thereon; that said
Referee execute to the purchaser or purchasers on such sale a deed or other
instrument of conveyance of the Mortgaged Premises sold; that in the event a
party other than the plaintiff becomes the purchaser or purchasers at such
sale, the closing of title shall be had thirty days after such sale unless
otherwise stipulated by plaintiff and all parties to the sale; and it is
further

 

ORDERED, ADJUDGED AND DECREED, that said Referee on receiving the
proceeds of the sale shall forthwith pay therefrom the lien(s) on the Mortgaged
Premises for real estate taxes, special assessments, school taxes, water and
sewer charges, emergency repair liens, sidewalk repair charges, pest control
charges, health department clean-up liens and all other tax liens that have priority
pursuant to applicable law over any amount due to
plaintiff which may have lawfully accrued thereon to the date of payment, and
it is further

 

ORDERED, ADJUDGED AND DECREED, that said referee then deposit the
balance of said proceeds of sale in his/her own name as Referee in                                           , and shall thereafter make the following
payments therefrom and his/her checks drawn for that purpose shall be paid by
said depository:

 

D-15

 

FIRST:           A
sum not exceeding $500, to the referee for his or her fees herein as provided
in section 8003(b) of the Civil Practices Law and Rules. 

 

SECOND:      The
expenses of the sale and the advertising expenses as shown on the bills
presented and certified by the Referee to be correct.

 

THIRD:          To
the plaintiff or plaintiffs attorney the sum of $
                       adjudged
to the plaintiff for costs and disbursements in this action, to be taxed by the
Clerk of the Court, and inserted herein, with interest thereon from the date
hereof; together with an additional allowance of
$                     hereby
awarded to the plaintiff or plaintiffs attorneys, in addition to costs, with
interest thereon from the date hereof, and also the sum of
[                     ],
the amount due as aforesaid, together with interest on the outstanding
principal sum of
[                     ]
at the rate of
[                     ]
per diem from
[                     ]
until the date of judgment and thereafter at the legal rate until payment is
made to plaintiff, and also any amounts paid by plaintiff for any taxes,
insurance or for preservation of the Mortgaged Premises since
                
and any principal and interest and any other charges due to prior mortgages, or
to maintain the premises pending consummation of this foreclosure sale, not
previously included in the computation and upon presentation of receipts for
said expenditures to the Referee, all together with interest thereon pursuant
to the Note and Mortgage.

 

ORDERED, ADJUDGED AND DECREED that in case plaintiff, its assignee,
designee or nominee, is the purchaser of the Mortgaged Premises, or in the
event that the rights of the purchasers at said sale and the terms of sale
under this judgment shall be assigned to and be acquired by the plaintiff, and
a valid assignment thereof filed with said Referee, said referee shall not
require it to pay in cash the entire amount bid at the sale, but shall execute
and deliver

 

D-16

 

to
plaintiff or its assignee a deed or other instrument of conveyance of the
Mortgaged Premises upon the payment to said Referee of the amounts specified
above in items marked “FIRST” and “SECOND” and the amounts of the aforesaid
taxes, assessments, sewer rents and water rates, with interest and penalties
thereon, or in lieu of the payment of said last mentioned amounts, upon filing
with the referee receipts of the proper municipal authorities, showing payment
thereof; that the balance of the amount bid, after deduction therefrom of the
aforesaid amounts paid by plaintiff for Referee’s fees, advertising expenses,
taxes, assessments, sewer rents and water rates shall be allowed to the
plaintiff and applied by said Referee upon the amounts due to the plaintiff as
specified in item marked “THIRD”; that if after so applying the balance of the
amount bid there shall be a surplus over and above the amounts due to
plaintiff, plaintiff shall pay to the referee, upon delivery of the referee’s
deed or other instrument of conveyance, the amount of such surplus; that the
referee on receiving the amounts from plaintiff shall forthwith pay therefrom
said taxes, assessments, sewer rents, water rates, with interest and penalties
thereon, unless the same have already been paid, and shall then deposit the
balance; and it is further

 

ORDERED, ADJUDGED AND DECREED that the referee shall take the receipts
of plaintiff or its attorneys for the amounts paid as hereinbefore directed in
item marked “THIRD,” and file it with his/her report of sale; that the referee
shall deposit the surplus monies, if any, with the New York County Clerk within
five days after the same shall be received and be ascertainable, to the credit
of this action, to be withdrawn only on the order of the Court signed by a
Justice of this Court; that the referee shall make a report of the sale under
oath showing the disposition of the proceeds of the sale and accompanied by the
vouchers of the person to whom

 

D-17

 

the
payments were made and file it with the Clerk of New York County within thirty
days after completing the sale and executing the proper conveyance to the
purchaser and that if the proceeds of the sale be insufficient to pay the
amount so due to plaintiff with the expenses of sale, interest, costs and
allowances, as aforesaid, the referee shall specify the amount of such
deficiency in his or her report and Borrower hereby consents to a deficiency
judgment against it, in the amount of such deficiency, in accordance with the
provisions of Section 1371 of the Real Property Actions and Proceedings
Law; and it is further

 

ORDERED, ADJUDGED AND DECREED that the purchaser or purchasers at the
sale of the Mortgaged Premises be let into possession on production of the
referee’s deed or other instrument of conveyance therefor; and it is further

 

ORDERED, ADJUDGED AND DECREED that, inasmuch as defendants “John Does
Nos. 1 - 100,” “John Doe Company 1 -100” and “John Doe Corporations 1 - 100”
are unknowns and have not been served with process, the action is discontinued
as against them, their names are deleted from the caption hereof and the
caption of this action shall be amended to read hereafter as follows:

 

	
  SUPREME
  COURT OF THE STATE OF NEW YORK

  
	
  COUNTY
  OF New York

  	
  x

  

 

	 
	
  [LENDER],

  	
   

  	
   

  	
   

  	
   

  	 

	 
	
   

  	
   

  	
   

  	
   

  	
   

  	 

	 
	
   

  	
   

  	
  Plaintiff,

  	
   

  	
  Index No.

  	 

	 
	
   

  	
   

  	
   

  	
   

  	
   

  	 

	 
	
   -against-

  	
   

  	
   

  	
   

  	
   

  	 

	 
	
   

  	
   

  	
   

  	
   

  	
   

  	 

	 
	
  FC
  LION LLC [Names of additional defendants to

  be inserted]  

  	
   

  	
   

  	 

	 
	
   

  	
   

  	
   

  	
   

  	
   

  	 

	 
	
   

  	
   

  	
  Defendants.

  	
   

  	
   

  	 

	
   

  	
  x

  
								

 

D-18

 

and it is further

 

ORDERED, ADJUDGED AND DECREED that the defendant in this action and all
persons claiming under or through such defendants after the filing of the
notices of the pendency of this action, be and they hereby are forever barred
and foreclosed of all right, claim, lien, title, interest and equity of
redemption in the Mortgaged Premises sold pursuant to the terms hereof and each
and every part thereof; and it is further

 

ORDERED, ADJUDGED AND DECREED that said Mortgaged Premises is to be
sold in one parcel in “as is” physical order and condition, subject to any
state of facts that an inspection of the Mortgaged Premises would disclose, any
state of facts that an accurate survey of the Mortgaged Premises would show,
any covenants, restrictions, declarations, reservations, easements, rights of
way and public utility agreements of record, if any, any building and zoning
ordinances of the municipality in which the Mortgaged Premises is located and
possible violations of same, any rights of tenants or persons in possession of
the subject Mortgaged Premises, prior lien(s) of record, if any, except those
liens addressed in section 1354 of the Real Property Actions and
Proceedings Law, and the right, if any, of the UNITED STATES OF AMERICA to
redeem the Mortgaged Premises as provided in Title 28 of the United States
Code, Section 2410(c).

 

ORDERED, ADJUDGED AND DECREED that a copy of this judgment with notice
of entry shall be served upon the owner of the equity of redemption, any
tenants named in this action and any other party entitled to notice.

 

D-19

 

Said premises commonly known as [Site 8 South], New York, New
York.  The following is a description of
the Mortgaged Premises hereinbefore mentioned.

 

[INSERT LEGAL
DESCRIPTION]

 

	
   

  	
  ENTER:

  
	
   

  	
   

  	
   

  
	
   

  	
  J.S.C.

  	
   

  

 

CONSENT
TO ENTRY OF THE WITHIN JUDGMENT OF FORECLOSURE AND SALE ON BEHALF OF THE
RESPECTIVE PARTIES HERETO THIS        DAY
OF            .

 

	
  SWIDLER BERLIN
  SHEREFF FRIEDMAN,

  LLP

  	
  [KELLEY
  DRYE & WARREN LLP] 

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
  405 Lexington Avenue 

  	
  101 Park Avenue

  
	
  New York, New York 10174

  	
  New York, New York 10178

  
	
  (212) 973-0111

  	
  (212) 212-808-7800

  
	
  Attorneys for Plaintiff 

  	
  Attorneys for Defendant

  
	
  [LENDER]

  	
  [FC Member]

  
						

 

D-20

 

EXHIBIT E

 

FORM OF DEMAND NOTICE

 

[Lender]

c/o The New York Times Company

229 West 43rd Street

New York, New York 10036

 

Date:                

 

FC Lion LLC

[ADDRESS FOR NOTICES

IN NYTC EXTENSION LOAN

MORTGAGE]

 

Forest
City Enterprises, Inc.

1160 Terminal Tower

50 Public Square

Cleveland, Ohio 44113

Attention: General Counsel

 

Ladies and Gentlemen:

 

Demand is hereby made that FC Lion LLC as “Borrower” under (i) that
certain Modification of Substitute Extension Loan Note (the “Note”)
dated                    2001
and (ii) that certain Modification of Substitute Extension Loan Mortgage and
Security Agreement  (Leasehold) (the
“Mortgage”),
dated                    ,
2001, which documents among others evidence and secure that certain loan in the
original principal amount of $                    from
[LENDER] (“Lender”) to Borrower (the “NYTC Extension Loan”), take any and all
such actions as indicated below (the “Required Conveyance Action”) within ten
(10) days after delivery to Borrower of this Demand Notice pursuant to the terms
and provisions of that certain Guaranty dated
                  from
Forest City Enterprises, Inc. to Lender (the “Guaranty”).

 

[Borrower shall execute the attached stipulation consenting to the
immediate entry of a judgment of foreclosure and the immediate sale at public
auction of the Mortgaged Property (as defined in the Mortgage) in accordance
with the terms thereof, and shall thereafter execute and deliver all other
documents required in connection therewith to effectuate such immediate entry
of a judgment of foreclosure and the immediate sale at public auction of the
Mortgaged Property. In connection with the foregoing and the foreclosure of the
NYTC Extension Loan,

 

E-1

 

Borrower shall pay any and all transfer taxes and any other expenses of
Lender (or its designee) (including reasonable fees and expenses of counsel).]

 

-or-

 

[Borrower shall convey to Lender (or its designee, if herein so
indicated:                                        ) the Mortgaged Property (as defined in the
Mortgage) and shall execute and deliver to Lender the attached assignment and
required ancillary documentation and take any other reasonable actions as
Lender may require to that end.  In
connection with the foregoing, Borrower shall (x) pay all transfer taxes,
recording charges and other expenses (including reasonable fees of counsel) of
Lender and shall (y) deliver possession of the Mortgaged Property to [LENDER]
(or it’s designee), subject only to the rights of permitted tenants and
occupants under the Condominium Declaration (as defined in the Mortgage).]

 

Failure of the Borrower to take the above described actions within the
10-day period set forth herein, and to comply with the applicable requirements
of Paragraph 3(d) of the Guaranty, time being of the essence, shall
constitute a “Non-Conveyance Triggering Event” under such Guaranty. The rights
and remedies of Lender under such Guaranty and this Demand Notice shall be in
addition to and in no way prejudice or act as a waiver of any and all rights
and remedies of Lender, whether by acceleration or otherwise, under the Note,
the Mortgage or any other document evidencing or securing the obligations NYTC
Extension Loan.

 

Capitalized terms used by not otherwise defined herein shall have the
meanings ascribed to such terms in the Guaranty.

 

 

	
   

  	
  Yours
  very truly,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [LENDER]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

 

Kelley Drye & Warren
LLP

101 Park Avenue

New York, New York 10178

Attention: General Counsel

 

E-2

 

 

EXHIBIT T

 

Allocation Methodology Strategy

 

 

EXHIBIT T

 

Site
Work/ Demolition / Subway Entrance

Allocate cost between NYTC, FCRC Retail, FCRC
Office and SPU based on percentage of GSF.

 

Foundation
& Excavation

Allocate cost between NYTC, FCRC Retail, FCRC Office and SPU based on
percentage of GSF except for the following considerations:

 

1.     Elevator pits reaching foundation level to
be allocated to area serviced by the elevator.

 

Structural
Frame including
structural steel, metal decks, concrete fill, and spray fireproofing.

Allocate cost between NYTC, FCRC Retail, FCRC Office and SPU based on
percentage of GSF except for the following considerations:

 

1.     Any enhanced floor loading that exceeds
typical office loads, atypical column-free space, or repositioning beams or
bracing should be allocated to the specific user.

 

Stairs

The cost of fire stairs and the associated structural support will be
allocated between NYTC, FCRC Retail, FCRC Office and SPU based on percentage of
GSF.

 

The
cost of stairs over and above those required by code, including communicating
or convenience stairs that are included to serve a specific user, will be
allocated to that user. (For example the cost of any stairs that provide access
to and from multiple levels of the news room should be allocated NYTC and
similarly, the cost of any stairs that provide access to an from floors in a
Tenant’s space should be allocated to FCRC.)

 

Roofing
& Waterproofing

1.     Allocate cost of roofing and waterproofing
between NYTC, FCRC Retail, FCRC Office and SPU based on percentage of GSF.

 

2.     Other than the skylights over the Lobby
Garden (see below), the cost of any skylights over the “Podium” will be
allocated to NYTC after deducting a credit for the cost of roofing cited above.

 

Exterior
Wall System

Allocate cost between NYTC, FCRC Retail, FCRC Office and SPU based on
area of curtain wall required to enclose floor area occupied by the different
users. In the case of floor plates that are occupied by more than one user, the
cost of enclosing the floor will be allocated based on a percentage of floor
area occupied by each of the four users as that percentage is applied to the
surface area of exterior wall required to enclose the entire floor. To the
extent that the Exterior Wall System extends above the roof the cost of the
Exterior Wall System and associated support structure will be allocated among
NYTC, FCRC Retail, FCRC Office and SPU based on percentage of GSF. The cost of
enclosing those areas that are not occupied by a particular user, but instead
is either common area or is used to house common MEP equipment which is
separate and distinct from MEP equipment that specifically serves a specific
user, will be allocated based on the same approach as outlined below in the
“Percentage of GSF Calculation.”   The
total cost of the exterior wall system, including the CMU wall at the east end
of the site, will be divided by the total square footage of surface area of the
exterior wall system in order to calculate a blended cost per SF which will be
applied to the surface area allocated to each user. The cost of all ground
floor and podium level canopies will be allocated to each of the four users
based on a percentage of GSF. The cost of all ground floor awnings will be
allocated to each of the four users based on a percentage of GSF.

 

 

Interior Partitions & Finishes- Core, Base
Building and Lobbies only

Allocate cost of interior finishes, including
but not limited to lobby artwork, between NYTC, FCRC Retail, FCRC Office and
SPU based on percentage of GSF except for the following considerations:

 

1.     Allocate demising
partitions among adjacent users. (Specifically, on the Ground Level and
sub-grade level(s).)

2.     Allocate specific
ground floor lobby finish costs to appropriate users.

3.     Allocate core
drywall, finishes, doors, hardware, toilet accessories, and toilet partition
costs to the area that the specific portion of the core is serving.

4.     Signs that merely
identify The Times shall not be considered artwork for purposes of allocating
costs.

5.     Cost of shaftwall
construction for blind elevator shafts, or other shafts required for building
elements which are not included in the Base Building Core, and Shell scope,
shall be allocated to the appropriate user.

 

Equipment & Specialties

Allocate cost between NYTC, FCRC Retail, FCRC
Office and SPU based on percentage of GSF.

 

Vertical Transportation

Allocate cost between
NYTC, FCRC Retail, FCRC Office and SPU based on usage or areas of service
instead of a percentage of GSF. i.e. NYTC, FCRC Retail, FCRC Office and SPU
will pay for the full price of the elevators serving their space. The cost of
each of the freight elevators will be allocated to the four users based on a
pro rata share of the number of stops that the elevator makes to service each
user. The cost of the East Freight Elevator will be allocated based on
GSF.   The cost of the East Service
Elevator will be allocated based on 3 stops for the NYTC and three stops for
Common Use. The GSF occupied by the Passenger Elevator Machine Rooms will be
allocated to the user of the associated elevators.   The GSF occupied by the Freight Elevator Machine rooms will be
allocated to Common Mechanical. The pro rata share of the cost of two stops of
each of the passenger elevators that serve the rooftop facility shall be allocated
to the NYTC and FCRC based on their respective percentage interest in the
rooftop facility.

 

Plumbing

Allocate cost between NYTC, FCRC Retail, FCRC
Office and SPU based on percentage of GSF except in the case of any special
requirements that may be separately designated by the parties in writing.

 

Fire
Protection

Allocate cost between NYTC, FCRC Retail, FCRC
Office and SPU based on percentage of GSF except in the case of any special
requirements that may be separately designated by the parties in writing.

 

H.V.A.C.

Allocate cost between NYTC, FCRC Retail, FCRC
Office and SPU based on a percentage of GSF except for atypical and specific
user requirements outside of the base building scope as defined in the “Base
Building Core and Shell” description. The cost of the chiller plant, as defined
in the Core and Shell definition, will be allocated between NYTC, FCRC Retail,
FCRC Office and SPU based on a percentage of GSF. Any excess need required by
either NYTC or FCRC that is not included in the base Core and Shell definition
(e.g. additional cooling capacity for newsroom or cafeteria if required), will
be paid for by the specific user on the basis of cost per ton of cooling
capacity. If the excess capacity that is required to satisfy the needs of an
FCRC tenant necessitates the installation of an additional chiller, then FCRC
will bear the incremental cost of the additional chiller. If FCRC bears that
incremental cost for an additional chiller, then all remaining excess cooling
capacity afforded to the building would run to FCRC.

 

2

 

Electrical

Allocate cost between NYTC, FCRC Retail, FCRC
Office and SPU based on percentage of GSF except for atypical and specific user
requirements outside of the base building scope as defined in the “Base
Building Core and Shell” description.

 

Lobby Garden

Allocate the cost, including but not limited
to skylight, smoke purge, column cladding, and lobby level enclosure, among
NYTC, FCRC Retail, FCRC Office and SPU based on percentage of GSF except for
the following considerations:

 

1.   Garden enclosure,
railings and related features in NYT’s space at the walls of the lobby garden
will be allocated to NYT to the extent that the costs exceed a standard fire
rated sheetrock enclosure.

 

Roof Garden

Allocated cost between NYTC and FCRC office
based on percentage of GSF.

 

Percentage of GSF Calculation

Each of the four users (FCRC Office, NYTC
Office, FCRC Retail, and SPU) occupies a certain GSF area. The remaining GSF
includes Common Areas, Mechanical Space specifically serving one of the four
user areas, shaft areas, and Mechanical Space that is required for central
plant and/or common base building equipment. The GSF of the Mechanical Space
that is occupied by equipment, including passenger elevator equipment,
specifically serving a particular user area will be included in that user’s
total GSF area. With the sole exception of the blind FCRC elevator shafts, all
shaft areas will be included in the total of each GSF floor area that is penetrated
by the shaft. An appropriate percentage of GSF will be assigned to each user
based on the total of the occupied space, user-specific mechanical space and
appropriate shaft space. The total of all Common and Central Plant Mechanical
GSF, including freight elevator equipment rooms, will then be allocated to each
of the four users based on the previously calculated percentages.

 

The FCRC blind elevator shaft space that
penetrates the NYTC floors will not be included in the GSF area calculation for
any of the four user areas.

 

For Example:

 

Occupied Areas:

	
  FCRC Office GSF:

  	
   

  	
  600,000

  	
   

  	
  44

  	
  %

  	
  (Inc. Mech Space serving user and appropriate shaft areas.)

  
	
  NYTC
  Office GSF:

  	
   

  	
  670,000

  	
   

  	
  49

  	
  %

  	
  (Inc. Mech Space
  serving user and appropriate shaft areas.)

  
	
  FCRC
  Blind Shaft:

  	
   

  	
  30,000

  	
   

  	
   

  	
   

  	
  (Area of FCRC elevator
  shafts penetrating NYTC floors.)

  
	
  FCRC
  Retail:

  	
   

  	
  60,000

  	
   

  	
  4

  	
  %

  	
  (Inc. Mech Space
  serving user and appropriate shaft areas.)

  
	
  SPU:

  	
   

  	
  40,000

  	
   

  	
  3

  	
  %

  	
  (Inc. Mech Space
  serving user and appropriate shaft areas.)

  
	
  Sub
  Total

  	
   

  	
  1,400,000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Blind
  Shaft Deduct

  	
   

  	
  (30,000

  	
  )

  	
   

  	
   

  	
   

  	
   

  
	
  Subtotal

  	
   

  	
  1,370,000

  	
   

  	
  100

  	
  %

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Common Areas:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lobby

  	
   

  	
  30,000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Common
  Areas

  	
   

  	
  40,000

  	
   

  	
   

  	
   

  	
  (Inc. basement
  corridors, driveways, bldg mgmt space.)

  
	
  Common
  Mech Space

  	
   

  	
  30,000

  	
   

  	
   

  	
   

  	
  (e.g. switchgear,
  chiller/boiler, fuel tanks, base genset.)

  
	
  Subtotal

  	
   

  	
  100,000

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

3

 

By applying the
percentages calculated in “Occupied Areas” subtotal to the “Common Areas”
subtotal, and removing the FCRC Blind Shaft area from the total amount used as
the basis of the allocation, the following percentages of the Total will be
used for GSF allocation purposes:

 

	
  FCRC Office GSF:

  	
   

  	
  644,000

  	
   

  	
  44

  	
  %

  
	
  NYTC
  Office GSF:

  	
   

  	
  719,000

  	
   

  	
  49

  	
  %

  
	
  FCRC
  Retail:

  	
   

  	
  64,000

  	
   

  	
  4

  	
  %

  
	
  SPU:

  	
   

  	
  43,000

  	
   

  	
  3

  	
  %

  
	
  Total

  	
   

  	
  1,470,000

  	
   

  	
   

  	
   

  

 

 

4

EXHIBIT U

 

 

Exhibit U

 

Cost Dispute Resolution List

 

	
  Building Element

  	
   

  	
  Current
  Budget

  	
   

  	
  Upset
  Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  •  Ground Floor Lobby Finishes, not including
  Artwork

  	
   

  	
  $

  	
  [*]

  	
   

  	
  $

  	
  [*]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  •  Entrances and Storefronts

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  •  Lobby Garden Landscaping

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  •  Building Canopies

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  •  Ground Floor Interior Glass &
  Courtyard Curtainwall

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  •  Exterior Lighting, Signage & Artwork

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  •  Rooftop Facility and Garden

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
								

 

EXHIBIT V

 

NYTC Recognition Agreement

 

 

RECOGNITION
AGREEMENT

 

This RECOGNITION AGREEMENT, dated as of
December 12, 2001 (this “Agreement”), is made by INGREDUS SITE 8
SOUTH LLC, a Delaware limited liability company (“ING”), having an
office at c/o Clarion Partners, 335 Madison Avenue, New York, New York 10017;
ING VASTGOED B B.V., a Netherlands private limited liability company (“ING
Indemnitor”) having an office at c/o Clarion Partners, 355 Madison Avenue,
New York, New York; FC 41st STREET ASSOCIATES, LLC, a New York limited
liability company (“FC”), having an office at c/o Forest City Ratner
Companies, One MetroTech Center North, Brooklyn, New York 11201; FC LION LLC, a
New York limited liability company (“FC Member”), having an office at
c/o Forest City Ratner Companies, One MetroTech Center North, Brooklyn, New
York 11201; NYT REAL ESTATE COMPANY LLC, a New York limited liability company
having an office at c/o The New York Times Company, 229 West 43rd Street, New
York, New York 10036 (“NYTC Member”); THE NEW YORK TIMES BUILDING LLC, a
New York limited liability company (“Property Owner”), having an office
at c/o The New York Times Company, 229 West 43rd Street, New York, New York
10036; FOREST CITY RATNER COMPANIES, a New York general partnership (“Developer”),
having an office at One MetroTech Center North, Brooklyn, New York 11201; and
THE NEW YORK TIMES COMPANY, a New York corporation (“NYTC”), having an
office at 229 West 43rd Street, New York, New York 10036.

 

R
E  C  I  T  A  L  S

 

WHEREAS:

 

A.            FC Member and NYTC Member are parties to
that certain Operating Agreement of The New York Times Building LLC, dated as
of the date hereof (the “Operating Agreement”), pursuant to which FC
Member and NYTC Member have agreed to jointly develop certain property located
at 8th Avenue and 40th Street, New York, New York, known as Site 8 South (the “Project”):

 

B.            Property Owner is entering into that
certain Agreement of Lease dated as of the date hereof between 42nd St.
Development Project, Inc. and Property Owner (as the same may hereafter be
amended from time to time, the “Ground Lease”) affecting certain land
known as Site 8 South, located at Eighth Avenue between 40th and 41st Streets,
in the County, City and State of New York (the “Property”) on which the
Project will be constructed;

 

C.            Upon completion of the Project, FC Member
and NYTC Member intend to enter into that certain Declaration of Leasehold
Condominium of The New York Times Building Condominium in the form attached as
an exhibit to the Operating Agreement (the “Declaration”) to form The
New York Times Building Condominium (the “Condominium”):

 

 

D.            Property Owner, FC Member and NYTC Member
have entered into a certain Development Agreement, dated as of the date hereof
(the “Development Agreement”), with Developer for the development of the
Project; and

 

E.             ING, FC, FC Member, NYTC Member, Property
Owner, Developer and NYTC desire to recognize certain rights granted to ING
with respect to the Project and certain rights granted to NYTC to participate
in a right of first offer and buy/sell provision contained in that certain
Operating Agreement of FC Member, dated as of the date hereof (the “FC
Member Agreement”).

 

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

 

1.             Notices. NYTC Member and Property
Owner agree to provide ING with a copy of any request, notice or demand delivered
to, or served by NYTC Member or Property Owner upon FC, FC Member, Property
Owner or Developer pursuant to the Operating Agreement, the Declaration, the
Development Agreement, the Project Documents (as defined in the Ground Lease)
or any of the exhibits to the foregoing documents, including, without
limitation, any request, notice or demand made pursuant to Section 3.01 of
the Operating Agreement, which notice shall be delivered to ING in the manner
prescribed in this Agreement. No such notice shall be effective as against FC,
FC Member, Property Owner or Developer, as the case may be, unless and until
same is so delivered to ING as provided in the immediately preceding sentence.

 

2.             Replacement of FC as Managing Member.
(a) NYTC Member and Property Owner have been advised by ING and FC that ING has
the right, subject to and pursuant to the FC Member Agreement, to remove FC as
the managing member of FC Member as a result of specified default provisions
set forth in the FC Member Agreement. Upon such removal, but subject to the
provisions of the Project Documents, ING or an Affiliate (as defined in the FC
Member Agreement) of ING Indemnitor, shall have the right to be substituted for
FC as the managing member of FC Member or to a substitute a third party as
managing member of the FC Member provided that any such third party (other than
ING) shall have been approved in writing in advance by NYTC Member in its sole
and absolute discretion (any replacement managing member of the FC Member
complying with the provisions of this sentence, a “Replacement FC Managing
Member”).  FC and Developer
acknowledge that ING shall have the right and power to notify NYTC Member and
Property Owner of such removal and replacement by written notice given in
accordance with this Agreement (a “Replacement Notice”) and that
Property Owner, NYTC and NYTC Member shall have the right to rely on a
Replacement Notice purportedly delivered by ING. Upon receipt by NYTC, NYTC
Member and Property Owner of a Replacement Notice, the Replacement FC Managing
Member shall have the right to exercise on behalf of FC Member as the managing
member of FC Member all of the rights of FC Member as a member of Property
Owner pursuant to the Operating Agreement and the documents evidencing and
securing the NYTC Extension Loan (as defined in the Operating Agreement) or as
an owner of a unit in the Condominium pursuant to the Declaration, and NYTC,
NYTC Member and Property Owner shall recognize the exercise of all such rights
by the Replacement FC Managing Member on behalf of FC Member from and after
receipt by NYTC, NYTC

 

2

 

Member and Property Owner of a Replacement Notice.  FC and Developer, for themselves and on
behalf of their Affiliates (as defined in the Operating Agreement) and their
respective officers, directors, members, managers, shareholders, and agents,
and the respective successors and assigns of each of the foregoing, hereby
release Property Owner, NYTC Member and NYTC from and against any and all
claims, actions or causes of action based in whole or in part upon the reliance
of Property Owner, NYTC Member and/or NYTC on a Replacement Notice or any
action taken by the Replacement FC Managing Member as managing member of FC
Member from and after delivery of a Replacement Notice.   ING Indemnitor hereby agrees to indemnify,
defend and hold harmless NYTC Member and NYTC and their respective officers,
directors, members, managers, shareholders, agents and Affiliates, and the
successors and assigns of each of the foregoing (collectively, “Indemnitees”),
from and against all claims, actions, causes of action, losses, damages and
expenses (including, without limitation, reasonable attorneys fees and
expenses) suffered or incurred by the Indemnitees arising out of or related to
the delivery of a Replacement Notice, any reliance by Property Owner or any
Indemnitee upon such Replacement Notice, and/or the replacement of FC by the
Replacement FC Managing Member as managing member of FC Member.

 

(b)           From and after the giving of a Replacement
Notice, the reference in Section 5.07(e) of the Operating Agreement to
“Bruce Ratner” shall automatically be deemed deleted and replaced with “Charles
Grossman” or such other individual designated by ING that is approved by NYTC
Member in its sole and absolute discretion.

 

3.             Replacement of Developer. (a) FC,
FC Member and ING acknowledge and agree that, pursuant to the Operating
Agreement, the right to exercise any and all rights and remedies against
Developer, including without limitation, termination of the Development
Agreement, on account of a default by Developer under the Development Agreement
is vested solely in the NYTC Member. If the NYTC Member, in its sole and
absolute discretion, elects to terminate the Development Agreement by reason of
a default by Developer thereunder prior to Substantial Completion of the Core
and Shell (as such terms are defined in the Development Agreement), then NYTC
Member shall hire or cause Property Owner to hire (and FC, ING and FC Member
hereby consent to any such hiring by NYTC Member or Property Owner) a
replacement developer for the Core and Shell (“Replacement Developer”)
which Replacement Developer shall be selected by NYTC Member in NYTC Member’s
sole and absolute determination, provided that such Replacement Developer
shall, in NYTC Member’s reasonable discretion, have constructed or developed
(or have as a principal or principals one or more persons who have, as
principal(s) of other companies, constructed or developed) at least 5,000,000
square feet of space at least 2,000,000 square feet of which consists of Class
A high-rise office building space in New York City. The Replacement Developer
shall not be NYTC Member or an Affiliate (as defined in the Operating
Agreement) of NYTC. In addition to the other requirements and limitations set
forth in this Paragraph 3(a), (A) if such replacement occurs prior to
commencement of construction of the Core and Shell and a commitment for
construction financing for the Project has been executed by Property Owner and
a construction lender, such Replacement Developer shall be an entity which is
approved by such construction lender and such Replacement Developer shall agree
and shall be required to provide the construction completion guarantee to such
construction lender required pursuant to Section 5.09 of the Operating
Agreement, and (B) if such replacement occurs prior to commencement of
construction of the Core and Shell and a commitment for construction financing
for the Project

 

3

 

has not then been executed by Property Owner and a construction lender,
such Replacement Developer shall be an entity which has previously been
approved by one or more construction lenders as a developer of Class A high
rise office buildings in New York City (“Comparable Projects”) and as the
guarantor of completion of Comparable Projects and such Replacement Developer
shall agree and shall be required to provide the construction completion
guarantee to such construction lender required pursuant to Section 5.09 of
the Operating Agreement. The Replacement Developer shall be required to perform
the remaining obligations of Developer under the Development Agreement, subject
to such modifications thereto as NYTC Member may agree to in its commercially
reasonable discretion. Notwithstanding the foregoing, NYTC, NYTC Member and
Property Owner shall not have the right to appoint a replacement of the
Developer if such appointment shall result in a default under Project Documents
or the documents governing the Construction Loan (as defined in the Operating
Agreement).

 

(b)           Nothing contained in Paragraph 3(a) of this
Agreement shall be deemed to prohibit ING from terminating any separate
agreement (i.e., other than the Development Agreement) between ING and
Developer or from engaging a replacement developer for ING and FC Member (“FC
Unit Replacement Developer”), provided that the appointment of any such FC
Unit Replacement Developer shall not result in a default by Property Owner, NYTC
or NYTC Member under the Project Documents or any default under the documents
governing the Construction Loan and that no such FC Unit Replacement Developer
shall (A) have any rights to participate in the development or construction of
the Core and Shell other than to act in an advisory capacity to FC Member in
connection therewith, or (B) interfere with, impede or delay the development
and construction of the Project in any manner whatsoever.

 

4.             Transfer of Interests. (a) NYTC
Member hereby consents to the transfer of interests in FC Member by ING to FC,
provided and on condition that any such transfer shall not result in a default
by Property Owner, NYTC or NYTC Member under the Project Documents or any
default under the documents governing the Construction Loan.

 

(b)           NYTC Member hereby consents to the transfer
of interests in FC Member by FC to ING, provided and on condition that:

 

(i)            such transfers are
made either (A) after the FC Lockout Period, or (B) pursuant to
Section 8.04 of the FC Member Agreement (transfers in this clause (B)
being hereinafter called “Default Transfers”), (C) pursuant to
Section 5.13 of the FC Member Agreement, or (D) after the ING Lockout
Period pursuant to Section 8.05 of the FC Member Agreement as a result of
a buy-sell procedure initiated thereunder by ING (it being acknowledged that FC
shall not have the right to initiate a buy-sell procedure prior to the end of
the FC Lockout Period), and

 

(ii)           such transfers shall be
subject to the right of first offer provisions of Section 8.03 of the FC
Member Agreement or the buy-sell provisions of Section 8.05 of the FC
Member Agreement, as applicable, and NYTC Member’s right to participate in such
right of first-offer and buy-sell procedures as set forth in the FC Member
Agreement (the “NYTC Participation Rights”), and

 

4

 

(iii)          such transfers shall not
result in a default by Property Owner, NYTC or NYTC Member under the Project
Documents or any default under the documents governing the Construction Loan.

 

(c)           ING shall have the right to transfer up to
fifty (50%) percent of the interests in ING to not more than three (3)
Institutional Investors (as such term is defined in the FC Member Agreement),
and such transfers shall not be subject to NYTC Participation Rights, provided
and on condition that, (i) such transfers will not result in a default by
Property Owner, NYTC Member or NYTC under the Project Documents or any default
under the documents governing the Construction Loan, (ii) ING shall notify NYTC
Member not later than ten (10) business days prior to the effective date of any
transfer pursuant to this Paragraph (c) setting forth the name and address of
each such Institutional Investor and reasonable evidence of their qualification
as an Institutional Investor, and (iii) no such Institutional Investor shall
have any right to participate other than through the rights of ING in the
development, construction, management or operation of the Project and no such
Institutional Investor shall have any rights or obligations other than through
the rights of ING with respect to Property Owner or NYTC Member by reason of
such Institutional Investor’s investment in the Project through ING. ING
Indemnitor hereby agrees to indemnify, defend and hold harmless the
Indemnitees, from and against all claims, actions, causes of action, losses,
damages and expenses (including, without limitation, reasonable attorneys fees
and expenses) arising out of or related to any claim by any such Institutional
Investor or anyone acting under or through any such Institutional Investor if
such claim is in any manner related to such Institutional Investor’s investment
in the Project through ING.

 

(d)           ING shall have the right at any time from
and after the expiration of the ING Lockout Period to transfer ING’s interest
in FC Member to any person or entity, subject only to the NYTC Participation
Rights, provided that such transfers will not result in a default by Property
Owner, NYTC Member or NYTC under the Project Documents or any default under the
documents governing the Construction Loan.

 

(e)           In the event ING acquires directly or
indirectly one-hundred percent of the interests of FC Member in the Project by
way of transfers permitted under this Agreement and no interests in ING or the
Project are owned directly or indirectly by (i) Forest City Enterprises, Inc.
(“FCE”); and or (ii) Developer, and/or (iii) Bruce C. Ratner, and/or (iv)
“Family Members” (i.e., any parent, spouse, sibling, child, grandchild, aunt,
uncle, niece, nephew or cousin, or any step-child or step-grandchild) of Bruce
C. Ratner; or (v) any trust or trusts established for the benefit of Bruce C.
Ratner or his Family Members, then, notwithstanding anything to the contrary
contained in the Declaration, the “Lockout Period” (as such term is
defined and used in the Declaration) shall end on the seventh (7th) anniversary
of the date of the Operating Agreement or such earlier date as NYTC (as defined
in the Declaration) shall cease to own and occupy Units (as defined in the
Declaration) within the Building (as defined in the Declaration), the Common
Interest (as defined in the Declaration) attributable to which, in the
aggregate, constitutes at least twenty (20%) percent. The provisions of the
preceding sentence shall not be deemed to modify any other provision of the
Declaration applicable to the sale of any FC Individual Unit(s) or the sale of
all or substantially all of the ownership interests therein, including without
limitation, NYTC’s right of first refusal and right of first offer pursuant to
Article XX of the Declaration (it being understood and agreed that sales
or other transfers of

 

5

 

interests in any Unit Owner between FC and ING and by ING to any other
Person shall not be subject to such right of first refusal or right of first
offer but shall be governed by the provisions of Section 4 hereof,
including the NYTC Participation Rights).

 

(f)            NYTC Member consents to the conversion of
ING’s interest in FC Member to a mezzanine loan in accordance with
Section 5.06(d)(iii) of the FC Member Agreement.

 

(g)           Nothing contained in this Agreement,
including without limitation the permission granted hereunder to transfer
interests in FC Member, shall be deemed to limit the obligations and liability
of FCE under that certain Minimum Equity Agreement and Guaranty of even date
herewith by and among FC, FCE, NYTC and NYTC Member in the event such transfers
result in a breach of said Minimum Equity Agreement and Guaranty.

 

5.             Amendments of Operating Agreement,
Declaration and Project Documents. Property Owner, FC, NYTC and NYTC Member
agree that they shall not enter into any amendment of the Operating Agreement,
the Declaration or any Project Document without the consent of ING, provided,
however, (i) no such consent of ING shall be required to any amendment of the
NYTC Unit Lease (as defined in the Declaration) which is permitted without the
consent of any other Unit Owner (as defined in the Declaration) under Article 23,
Section 4 of the Declaration, and (ii) the execution or purported
execution of any amendment of the Operating Agreement, the Declaration, any
Project Document or any exhibits to the foregoing documents by ING on behalf of
or as a signatory for FC Member shall be conclusive evidence of its consent.

 

6.             Rights Limited to this Agreement.
Except as expressly set forth in this Agreement, neither ING nor anyone
claiming under or through ING shall have any rights against or with respect to
Property Owner, NYTC, or NYTC Member in connection with (i) the Project or (ii)
the Operating Agreement and/or the Development Agreement or the transactions
contemplated thereby.

 

7.             Notices. All notices, demands and
requests hereunder shall be in writing and sent by (i) United States registered
or certified mail, postage prepaid, return receipt requested, or (ii) hand, or
(iii) reputable overnight courier delivery for next business-day delivery,
addressed in each instance to the parties at the respective addresses set forth
below, or at such other address as any of the parties may from time to time
designate by written notice given as herein required. Notices, demands and
requests given in such manner shall be deemed sufficiently served or given at
the time such notice, demand or request shall have been delivered, except that
notices, demands and requests given by mail shall be deemed sufficiently served
or given three (3) business days after such notice, demand or request shall
have been deposited in any post office or branch post office regularly
maintained by the United States Postal Service.

The notice addresses are as follows:

 

	
  if to ING:

  	
   

  	
  INGREDUS Site 8 South LLC

  
	
   

  	
   

  	
  c/o Clarion Partners

  
	
   

  	
   

  	
  335 Madison Avenue

  
	
   

  	
   

  	
  New York, New York  10017

  

 

6

 

	
   

  	
   

  	
  Attn:
  Mr. Charles Grossman

  
	
   

  	
   

  	
  Telephone (212) 883-2500

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  INGREDUS
  Site 8 South LLC,

  
	
   

  	
   

  	
  c/o Clarion Partners

  
	
   

  	
   

  	
  601 13th Street, N.W

  
	
   

  	
   

  	
  Suite 450 North

  
	
   

  	
   

  	
  Washington DC 20005

  
	
   

  	
   

  	
  Attn: Mr. Martin Standiford

  
	
   

  	
   

  	
  Telephone (202) 879-9495

  
	
   

  	
   

  	
   

  
	
  and to:

  	
   

  	
  Skadden, Arps, Slate, Meagher & Flom LLP

  
	
   

  	
   

  	
  Four Time Square

  
	
   

  	
   

  	
  New York, New York 10036

  
	
   

  	
   

  	
  Attn: Benjamin F. Needell, Esq.

  
	
   

  	
   

  	
  Telephone: (212) 735-2600

  
	
   

  	
   

  	
   

  
	
  if to ING Indemnitor:

  	
   

  	
  ING
  VASTGOED B B.V.

  
	
   

  	
   

  	
  c/o Clarion Partners

  
	
   

  	
   

  	
  355 Madison Avenue

  
	
   

  	
   

  	
  New York, New York 10017

  
	
   

  	
   

  	
  Attn: Mr. Charles Grossman

  
	
   

  	
   

  	
  Telephone (212) 883-2500

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  INGREDUS
  SITE 8 SOUTH LLC,

  
	
   

  	
   

  	
  c/o Clarion Partners

  
	
   

  	
   

  	
  601 13th Street, N.W.

  
	
   

  	
   

  	
  Suite 450 North

  
	
   

  	
   

  	
  Washington DC 20005

  
	
   

  	
   

  	
  Attn: Mr. Martin Standiford

  
	
   

  	
   

  	
  Telephone (202) 879-9495

  
	
   

  	
   

  	
   

  
	
  and to:

  	
   

  	
  Skadden, Arps, Slate, Meagher & Flom LLP

  
	
   

  	
   

  	
  Four Times Square

  
	
   

  	
   

  	
  New York, New York 10036

  
	
   

  	
   

  	
  Attn: Benjamin F. Needell, Esq.

  
	
   

  	
   

  	
  Telephone: (212) 735-2600

  
	
   

  	
   

  	
   

  
	
  if to FC:

  	
   

  	
  FC
  41st STREET ASSOCIATES, LLC,

  
	
   

  	
   

  	
  Forest City Ratner Companies

  
	
   

  	
   

  	
  One Metro Tech Center North

  
	
   

  	
   

  	
  New York, New York 11201

  
	
   

  	
   

  	
  Attn: General Counsel

  
	
   

  	
   

  	
  Telephone: (718) 722-3500

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  Kelley Drye & Warren LLP

  

 

7

 

	
   

  	
   

  	
  101 Park Avenue

  
	
   

  	
   

  	
  New York, New York 10178

  
	
   

  	
   

  	
  Attn: James J. Kirk, Esq.

  
	
   

  	
   

  	
  Telephone: (212) 808-7800

  
	
   

  	
   

  	
   

  
	
  if to FC Member:

  	
   

  	
  FC Lion LLC

  
	
   

  	
   

  	
  c/o Forest City Ratner Companies

  
	
   

  	
   

  	
  One Metro Tech Center North

  
	
   

  	
   

  	
  Brooklyn, New York 11201

  
	
   

  	
   

  	
  Attn: General Counsel

  
	
   

  	
   

  	
  Telephone: (718) 722-3500

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  FC Lion LLC

  
	
   

  	
   

  	
  c/o Clarion Partners

  
	
   

  	
   

  	
  335 Madison Avenue

  
	
   

  	
   

  	
  New York, New York 10017

  
	
   

  	
   

  	
  Attn: Mr. Charles Grossman

  
	
   

  	
   

  	
  Telephone: (212) 883-2500

  
	
   

  	
   

  	
   

  
	
  and to:

  	
   

  	
  FC Lion LLC

  
	
   

  	
   

  	
  c/o Clarion Partners

  
	
   

  	
   

  	
  601 13th Street, N.W.

  
	
   

  	
   

  	
  Suite 450 North

  
	
   

  	
   

  	
  Washington, DC 20005

  
	
   

  	
   

  	
  Attn: Mr. Martin Standiford

  
	
   

  	
   

  	
  Telephone: (202) 879-9495

  
	
   

  	
   

  	
   

  
	
  and to:

  	
   

  	
  Skadden, Arps, Slate, Meagher & Flom LLP

  
	
   

  	
   

  	
  Four Time Square

  
	
   

  	
   

  	
  New York, New York 10017

  
	
   

  	
   

  	
  Attn: Benjamin F. Needell, Esq.

  
	
   

  	
   

  	
  Telephone: (212) 735-2600

  
	
   

  	
   

  	
   

  
	
  and to:

  	
   

  	
  Kelley Drye & Warren LLP

  
	
   

  	
   

  	
  101 Park Avenue

  
	
   

  	
   

  	
  New York, New York 10017

  
	
   

  	
   

  	
  Attn: James J. Kirk, Esq.

  
	
   

  	
   

  	
  Telephone: (212) 808-7800

  
	
   

  	
   

  	
   

  
	
  if to NYTC

  	
   

  	
  NYT Real Estate Company LLC

  
	
  Member:

  	
   

  	
  c/o The New York Times Company

  
	
   

  	
   

  	
  229 West 43rd Street

  
	
   

  	
   

  	
  New York, New York 10036

  
	
   

  	
   

  	
  Attn: General Counsel

  
	
   

  	
   

  	
  Telephone: (212) 556-1234

  

 

8

 

	
  with
  a copy to:

  	
   

  	
  The
  New York Times Company

  
	
   

  	
   

  	
  229
  West 43rd Street

  
	
   

  	
   

  	
  New
  York, New York 10036

  
	
   

  	
   

  	
  Attn:
  Vice President for Real Estate Development

  
	
   

  	
   

  	
  Telephone:
  (212) 556-1234

  
	
   

  	
   

  	
   

  
	
  and
  to:

  	
   

  	
  Swidler
  Berlin Shereff Friedman LLP

  
	
   

  	
   

  	
  The
  Chrysler Building

  
	
   

  	
   

  	
  405
  Lexington Avenue

  
	
   

  	
   

  	
  New
  York, New York 10174

  
	
   

  	
   

  	
  Attn:
  Martin D. Polevoy, Esq.

  
	
   

  	
   

  	
  Telephone:
  (212) 973-0111

  
	
   

  	
   

  	
   

  
	
  if to Property

  Owner:

  	
   

  	
  The
  New York Times Building LLC

  
	
   

  	
   

  	
  c/o
  The New York Times

  
	
   

  	
   

  	
  229
  West 43rd Street

  
	
   

  	
   

  	
  New
  York, New York 10036

  
	
   

  	
   

  	
  Attn:
  General Counsel

  
	
   

  	
   

  	
  Telephone:
  (212) 353-8700

  
	
   

  	
   

  	
   

  
	
  with
  a copy to:

  	
   

  	
  The
  New York Times Company

  
	
   

  	
   

  	
  229
  West 43rd Street

  
	
   

  	
   

  	
  New
  York, New York 10036

  
	
   

  	
   

  	
  Attn:
  Director of Real Estate Development

  
	
   

  	
   

  	
  Telephone:
  (212) 556-1234

  
	
   

  	
   

  	
   

  
	
  and
  to:

  	
   

  	
  The
  New York Times Building LLC

  
	
   

  	
   

  	
  c/o
  Forest City Ratner Companies

  
	
   

  	
   

  	
  One
  MetroTech Center North

  
	
   

  	
   

  	
  Brooklyn,
  New York 11201

  
	
   

  	
   

  	
  Attn:
  General Counsel

  
	
   

  	
   

  	
  Telephone:
  (718) 722-3500

  
	
   

  	
   

  	
   

  
	
  and
  to:

  	
   

  	
  The
  New York Times Building LLC

  
	
   

  	
   

  	
  c/o
  Clarion Partners

  
	
   

  	
   

  	
  335
  Madison Avenue

  
	
   

  	
   

  	
  New
  York, New York 10017

  
	
   

  	
   

  	
  Attn:
  Mr. Charles Grossman

  
	
   

  	
   

  	
  Telephone:
  (212) 883-2500

  

 

9

 

	
  and
  to:

  	
   

  	
  Swidler Berlin Shereff Friedman, LLP

  
	
   

  	
   

  	
  The Chrysler Building

  
	
   

  	
   

  	
  405 Lexington Avenue

  
	
   

  	
   

  	
  New York, New York  10174

  
	
   

  	
   

  	
  Attn: Martin D. Polevoy, Esq.

  
	
   

  	
   

  	
  Telephone: (212) 973-0111

  
	
   

  	
   

  	
   

  
	
  and
  to:

  	
   

  	
  Skadden, Arps, Slate, Meagher & Flom LLP

  
	
   

  	
   

  	
  Four Times Square

  
	
   

  	
   

  	
  New York, New York  10036

  
	
   

  	
   

  	
  Attn: Benjamin F. Needell, Esq.

  
	
   

  	
   

  	
  Telephone: (212) 735-2600

  
	
   

  	
   

  	
   

  
	
  and
  to:

  	
   

  	
  Kelley Drye & Warren LLP

  
	
   

  	
   

  	
  101 Park Avenue

  
	
   

  	
   

  	
  New York, New York  10178

  
	
   

  	
   

  	
  Attn: James J. Kirk, Esq.

  
	
   

  	
   

  	
  Telephone: (212) 808-7800

  
	
   

  	
   

  	
   

  
	
  if to Developer:

  	
   

  	
  Forest City Ratner Companies

  
	
   

  	
   

  	
  One MetroTech Center North

  
	
   

  	
   

  	
  Brooklyn, New York 11201

  
	
   

  	
   

  	
  Attn: General Counsel

  
	
   

  	
   

  	
  Telephone: (718) 722-3500

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  Kelley Drye & Warren LLP

  
	
   

  	
   

  	
  101 Park Avenue

  
	
   

  	
   

  	
  New York, New York 10178

  
	
   

  	
   

  	
  Attn: James J. Kirk, Esq.

  
	
   

  	
   

  	
  Telephone: (212) 808-7800

  
	
   

  	
   

  	
   

  
	
  if to NYTC:

  	
   

  	
  The New York Times Company

  
	
   

  	
   

  	
  229 West 43rd Street

  
	
   

  	
   

  	
  New York, New York 10036

  
	
   

  	
   

  	
  Attn: General Counsel

  
	
   

  	
   

  	
  Telephone: (212) 556-7531

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  The New York Times Building LLC

  
	
   

  	
   

  	
  c/o The New York Times

  
	
   

  	
   

  	
  229 West 43rd Street

  
	
   

  	
   

  	
  New York, New York 10036

  
	
   

  	
   

  	
  Attn: Director of Real Estate

  
	
   

  	
   

  	
  Telephone: (212) 556-1234

  

 

10

 

	
  and to:

  	
   

  	
  Swidler Berlin Shereff Friedman, LLP

  
	
   

  	
   

  	
  The Chrysler Building

  
	
   

  	
   

  	
  405 Lexington Avenue

  
	
   

  	
   

  	
  New York, New York 10174

  
	
   

  	
   

  	
  Attn: Martin D. Polevoy, Esq.

  
	
   

  	
   

  	
  Telephone: (212) 973-0111

  

 

8.             Miscellaneous.

 

(a)           This Agreement shall be governed by the
internal laws of the State of New York, without regard to choice of law rules.
THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY (A) CONSENT AND
SUBMIT TO THE JURISDICTION OF (i) ANY COMPETENT STATE COURT WITHIN THE STATE OF
NEW YORK; AND (ii) THE UNITED STATES FEDERAL COURT SITTING IN NEW YORK; OVER
ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT,
AND (B) WAIVE ANY RIGHT TO A TRIAL BY JURY.

 

(b)           The section headings provided in this
Agreement are for convenience of reference only and shall not be deemed or
construed to limit, expand or modify any provision of this Agreement.

 

(c)           This Agreement may be executed in one or
more counterparts, each of which shall constitute an original and all of which,
when taken together, shall constitute one binding Agreement. 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.

 

(d)           This Agreement may be changed, terminated or
modified only by agreement in writing signed by each of the parties hereto.

 

(e)           The covenants, agreements, rights and
options contained in this Agreement shall be binding upon and shall inure to
the benefit of the respective successors and permitted assigns of the parties
hereto and all persons claiming by, through or under any of them.

 

(f)            In case any one or more of the provisions
of this Agreement shall be invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions shall be
in no way affected, prejudiced or disturbed thereby.

 

(g)           Each person executing this Agreement in a
representative capacity acknowledges, represents and warrants that he or she is
an official representative of the entity in whose name he or she is executing
this Agreement and that he or she possesses full and complete authority to bind
such entity to the full and faithful performance of all conditions, terms,
provisions, covenants, warranties and representations as contained in this
Agreement.

 

(h)           The words “herein,” “hereof,” “hereunder,”
and other words of similar import refer to this Agreement as a whole and not to
any particular article, section or other

 

11

 

subdivision of this Agreement unless specifically noted otherwise in
this Agreement. All references to sections are references to sections of this
Agreement, unless otherwise indicated.

 

(i)            Without limiting the generality of
Paragraph 8(a) hereof, ING Indemnitor hereby expressly waives any rights of ING
Indemnitor pursuant to the laws of The Netherlands or any other jurisdiction by
virtue of which exclusive jurisdiction of the courts of or any other
jurisdiction might be claimed.

 

(j)            The parties hereto (i) irrevocably waive
personal service of any summons and complaint and consent to the service of
process in any action or proceeding arising out of or relating to this
Agreement by the delivery of such process by certified or registered mail to
the addresses and attention parties provided hereunder for the delivery of
notices and hereby agree that such service shall be deemed sufficient; (ii)
irrevocably waive all objections as to venue and any and all rights any of them
may have to seek a change of venue with respect to any such action or
proceeding; (iii) agree that the laws of the State of New York shall govern in
any such action or proceeding and waive any and all defenses granted by the
laws of any other jurisdiction unless such defense is also allowed by the laws
of the State of New York; and (iv) agree that any final judgment rendered
against any of them in any such action or proceeding shall be conclusive and
may be enforced in any other jurisdiction pursuant to applicable law
(including, without limitation, The Netherlands) and expressly consent to the
affirmation of the validity of any such judgment by the courts of any other jurisdiction
(including, without limitation, The Netherlands) so as to permit execution
thereon.

 

(k)           Nothing herein shall affect the right of any
party hereto to commence legal proceedings or otherwise proceed against ING
Indemnitor in The Netherlands or in any other jurisdiction in which assets of
ING Indemnitor are located or to serve process in any other manner permitted by
applicable law. ING Indemnitor further agrees that any action or proceeding by
ING Indemnitor against any party to this Agreement in respect to any matters
arising out of or in any way relating to this Agreement shall be brought only
in the State of New York, County of New York.

 

[REMAINDER OF PAGE
INTENTIONALLY BLANK]

 

12

 

IN WITNESS WHEREOF, the parties to this
Agreement have executed this Agreement as of the date first set forth above.

 

	
   

  	
  INGREDUS SITE 8 SOUTH LLC,

  
	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles Grossman

  	
   

  
	
   

  	
   

  	
   Name:

  	
  Charles Grossman

  
	
   

  	
   

  	
   Title:

  
	
   

  	
   

  
	
   

  	
  ING VASTGOED B B.V.,

  
	
   

  	
  a Netherlands private limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  ING Vastgoed B.V., its director

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jan Doet Doets

  	
   

  
	
   

  	
   

  	
  Name: Jan Doet Doets

  
	
   

  	
   

  	
  Title:  Director

  
	
   

  	
   

  
	
   

  	
  FC LION LLC,

  
	
   

  	
  a New York limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  FC 41st STREET ASSOCIATES, LLC,

  
	
   

  	
   

  	
  a New York limited liability company, its Managing

  Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  RRG 8 SOUTH, INC., its Managing

  Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Bruce C. Ratner

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  Bruce C. Ratner

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  President

  	
   

  
													

 

13

 

	
   

  	
  NYT REAL ESTATE COMPANY LLC,

  
	
   

  	
  a New York limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Golden

  	
   

  
	
   

  	
   

  	
  Name:  Michael Golden

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  THE NEW YORK TIMES BUILDING LLC,

  
	
   

  	
  a New York limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  FC LION LLC,

  
	
   

  	
   

  	
  a New York limited liability company

  a Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  FC 41st Street Associates, LLC, its

  Managing Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  RRG 8 SOUTH, INC., its Managing

  Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Bruce C. Ratner

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  Bruce C. Ratner

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  NYT Real Estate Company LLC,

  
	
   

  	
   

  	
  a New York limited liability company,

  a Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael Golden

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Michael Golden

  
	
   

  	
   

  	
   

  	
  Title: Manager

  
	
   

  	
   

  
	
   

  	
  FOREST CITY RATNER COMPANIES,

  
	
   

  	
  a New York general partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bruce C. Ratner

  	
   

  
	
   

  	
   

  	
  Name: Bruce
  C. Ratner

  
	
   

  	
   

  	
  Title:   General Partner

  
											

 

14

 

	
   

  	
  THE NEW YORK TIMES COMPANY,

  
	
   

  	
  a New York corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Golden

  	
   

  
	
   

  	
   

  	
  Name: Michael Golden

  
	
   

  	
   

  	
  Title:

  

 

15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]