Document:

Exhibit 10.2

 

CONFORMED
COPY THROUGH FOURTH AMENDMENT,

AS OF
DECEMBER 19, 2007

 

PROMISSORY
NOTE

(Revolving Line of Credit)

 

	
  $30,000,000.00

  	
   

  	
  Louisville, Kentucky

  
	
   

  	
   

  	
  December 27, 1999

  

 

FOR VALUE RECEIVED, BIBP COMMODITIES, INC., a Delaware corporation with its
principal offices at 2002 Papa John’s Boulevard, Louisville, Kentucky 40299
(the “Maker”), hereby promises and agrees to pay to the order of CAPITAL DELIVERY, LTD., a Kentucky
corporation with its principal office and place of business in Louisville, Kentucky
(the “Lender”), the principal sum of THIRTY
MILLION AND 00/100 DOLLARS ($30,000,000.00), or, if less, the
aggregate unpaid balance as may be outstanding from time to time, in legal
tender of the United States of America, together with interest thereon, all in
accordance with the provisions of the Loan Agreement (as defined below) and
this Note.

 

The
outstanding principal balance of this Note, as the same shall exist from time
to time, shall bear interest daily at a rate per annum equal to the “Prime
Rate,” as hereinafter defined, less one (1) percentage point.  The interest rate this Note bears shall be
adjusted monthly on the first day of each calendar month.  “Prime Rate,” as used in this Note, shall
mean the interest rate published in The Wall
Street Journal in the “Money Rates” column as the prevailing “Prime
Rate,” it being understood and agreed that the Prime Rate is not necessarily
the lowest or best rate of interest available on commercial loans of the nature
evidenced by this Note.  In each month in
which there is an outstanding balance on this Note, interest shall be
calculated throughout such month at the rate in effect on the first day of such
month and shall be paid in arrears in legal tender of the United States of
America on or before the tenth (10th) day of the following month.  Interest shall continue to accrue as provided
herein so long as any portion of the principal of, or interest on, this Note
shall remain unpaid.  The entire
outstanding principal balance of this Note and all accrued and unpaid interest
shall be paid on or before December 31, 2000 (the “Maturity Date”).  All interest on this Note shall be computed
on the basis of the actual number of days elapsed over an assumed year
consisting of Three Hundred Sixty (360) calendar days.

 

1

 

Any
principal or interest payment due under this Note not paid at stated maturity,
by acceleration, conversion or otherwise, shall, to the extent permitted by
applicable law, thereafter bear interest (compounded monthly and payable upon
demand) at a rate which is 2% per annum in excess of the rate of interest
otherwise payable under this Note in respect of such principal amount until
such unpaid amount has been paid in full (whether before or after judgment).  The charging or collection of any such
additional interest shall not be deemed a waiver of any of the Lender’s rights
arising thereby or hereunder, including the right to declare a “Default” or an “Event
of Default” hereunder.

 

This
Note is a revolving note and is governed by that certain Loan Agreement of even
date herewith between Lender and the Maker (the “Loan Agreement”).  The Lender may make disbursements of
principal to the Maker, from time to time, commencing on the date of this Note
and ending on the day preceding the Maturity Date, in the form of “Advances” in
the manner and subject to the terms and conditions respecting such “Advances”
as are set forth in the Loan Agreement; provided, however, the aggregate
outstanding principal balance of this Note shall never exceed $30,000,000.00
(the “Maximum Committed Amount”).  The
amount of principal disbursed for each such “Advance” together with the date of
payments of principal on this Note shall be recorded by the Lender.  The amount of principal outstanding shown on
the records of the Lender shall be prima  facie correct.

 

Failure
of Maker to pay principal or interest, or both, on the date and in the amounts
required by this Note shall constitute an “Event of Default,” and Lender may
exercise any or all its rights and remedies, as provided in the Loan
Agreement.  The occurrence of any Event
of Default under the Loan Agreement or the Ownership Pledge Agreement shall
also constitute an Event of Default under this Note whereupon the holder of
this Note may, at its sole option, exercise any or all its remedies as set
forth in the Loan Agreement.

 

Failure
of the holder of this Note to exercise any of its rights, powers and/or
remedies shall not constitute a waiver of the right to exercise the same at
that or any other time.  All rights and
remedies of the holder hereof for default hereunder or under any of the
instruments referred to herein shall be cumulative to the greatest extent
permitted by law.  Time shall be of the 

 

2

 

essence
in the payment of all installments of interest and principal on this Note and
the performance of the Maker’s other obligations hereunder.

 

If
an Event of Default shall occur under this Note or the Loan Agreement, and this
Note is placed in the hands of an attorney for collection, or is collected
through any court, including any bankruptcy court, the Maker promises to pay to
the holder hereof its attorneys’ fees and costs incurred in collecting or
attempting to collect or securing or attempting to secure this Note or
enforcing its rights in any collateral securing this Note, provided the same is
legally allowed by the laws of the Commonwealth of Kentucky or any other state
or country where the subject collateral or any part thereof is situated.

 

The
Maker may prepay the outstanding principal of this Note without penalty in
whole or in minimum increments of $10,000.

 

The
Maker hereby agrees that all prepayments under this Note (whether voluntary,
involuntary or mandatory, and from whatever source derived) shall be applied,
in such order as the Lender shall determine in its sole discretion, to unpaid
fees, costs or expenses of the Maker under this Note, to accrued and unpaid
interest on this Note and to the outstanding principal balance of this Note, in
inverse order of maturity.

 

This
Note has been delivered in, shall be performed in, governed by and construed in
accordance with the laws of, the Commonwealth of Kentucky.

 

Any
legal action, suit or proceeding involving this Note shall be subject to the
provisions of Sections 11(e), (f), (g) and (h) of the Loan
Agreement.

 

The
Maker hereby waives presentment, demand, notice of dishonor, protest, notice of
protest and nonpayment, and further waives all exemptions to which it may now
or hereafter be entitled under the laws of this or any other state or of the
United States or any foreign country, and further agrees that the holder hereof
shall have the right without notice, to deal in any way, at 

 

3

 

any
time with any party, and to grant to any party any extension of time for
payment of this Note or any other indulgence or forbearance whatsoever, and may
release any security for the payment of this Note and/or modify the terms of
any of the instruments referred to herein or otherwise securing or pertaining
to this Note, and may release any guarantor of this Note from liability for
payment hereof, in every instance without the consent of the Maker and without
in any way affecting the liability of any Maker, surety, guarantor, endorser,
accommodation party, or other party to this Note, and without waiving any
rights the holder of this Note may have hereunder or by virtue of the law of
this or any other state or of the United States or any foreign country.

 

 

IN WITNESS WHEREOF, the Maker has caused its
authorized representative to execute and deliver this Note as of the date first
written above.

 

	
   

  	
  BIBP COMMODITIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Patrick
  W. Gaunce

  
	
   

  	
   

  	
  President
  and Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (the “Maker”)

  

 

	
  STATE
  OF

  	
   

  	
   

  	
  )

  
	
   

  	
   

  	
   

  	
  )
  SS:

  
	
  COUNTY
  OF

  	
   

  	
   

  	
  )

  

 

The
foregoing instrument was acknowledged before me this           
day of                     ,
2000, by Patrick W. Gaunce, President and Director of BIBP Commodities, Inc.,
on behalf of said corporation.

 

	
  My
  Commission expires:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (SEAL)

  	
   

  	
  Notary
  Public

  	
   

  
					

 

4Exhibit 10.5

 

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 4.03

 

21

 

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:

  	
  /s/
  Bruce C. Ratner

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  Bruce C. Ratner

  
	
   

  	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NYT
  REAL ESTATE COMPANY LLC, a New 

  York limited liability company

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  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

  	
   

  

 

 

	
  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

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
  AMOUNT ($)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TRADE SUMMARY

  	
   

  	
  NYT

  	
   

  	
  FCRC

  	
   

  	
  Retail

  	
   

  	
  SPU

  	
   

  	
  TOTAL

  	
   

  	
  $ /SF

  	
   

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02000 DEMOLITION

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  02100 ASBESTOS
  REMOVAL

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  02200 SITEWORK

  	
   

  	
  636,370

  	
   

  	
  539,878

  	
   

  	
  13,017

  	
   

  	
  21,577

  	
   

  	
  1,210,842

  	
   

  	
  0.78

  	
   

  	
  0.32

  	
   

  
	
  03200
  SUBSTRUCTURE

  	
   

  	
  5,870,628

  	
   

  	
  4,980,472

  	
   

  	
  120,080

  	
   

  	
  199,054

  	
   

  	
  11,170,234

  	
   

  	
  7.19

  	
   

  	
  2.94

  	
   

  
	
  03300
  SUPERSTRUCTURE CONCRETE

  	
   

  	
  7,418,501

  	
   

  	
  5,824,096

  	
   

  	
  136,337

  	
   

  	
  225,969

  	
   

  	
  13,604,904

  	
   

  	
  8.75

  	
   

  	
  3.59

  	
   

  
	
  04200 MASONRY

  	
   

  	
  215,715

  	
   

  	
  51,858

  	
   

  	
  3,935

  	
   

  	
  19,962

  	
   

  	
  291,470

  	
   

  	
  0.19

  	
   

  	
  0.08

  	
   

  
	
  04400 STONE

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  05100 STRUCTURAL
  STEEL

  	
   

  	
  33,786,909

  	
   

  	
  28,568,266

  	
   

  	
  685,772

  	
   

  	
  1,136,787

  	
   

  	
  64,177,734

  	
   

  	
  41.30

  	
   

  	
  16.92

  	
   

  
	
  05300 METAL DECK

  	
   

  	
  2,764,515

  	
   

  	
  2,364,067

  	
   

  	
  60,981

  	
   

  	
  98,403

  	
   

  	
  5,287,966

  	
   

  	
  3.40

  	
   

  	
  1.39

  	
   

  
	
  05500
  MISCELLANEOUS METALS

  	
   

  	
  2,844,619

  	
   

  	
  1,403,992

  	
   

  	
  32,578

  	
   

  	
  56,514

  	
   

  	
  4,337,703

  	
   

  	
  2.79

  	
   

  	
  1.14

  	
   

  
	
  05700 ORNAMENTAL
  METALS

  	
   

  	
  532,187

  	
   

  	
  7,794

  	
   

  	
  188

  	
   

  	
  311

  	
   

  	
  540,481

  	
   

  	
  0.35

  	
   

  	
  0.14

  	
   

  
	
  06100 ROUGH
  CARPENTRY

  	
   

  	
  1,127,104

  	
   

  	
  962,999

  	
   

  	
  20,993

  	
   

  	
  42,105

  	
   

  	
  2,153,201

  	
   

  	
  1.39

  	
   

  	
  0.57

  	
   

  
	
  06200 FINISH
  CARPENTRY/MILLWORK

  	
   

  	
  417,901

  	
   

  	
  407,263

  	
   

  	
  597

  	
   

  	
  17,785

  	
   

  	
  843,546

  	
   

  	
  0.54

  	
   

  	
  0.22

  	
   

  
	
  07100
  WATERPROOFING

  	
   

  	
  285,327

  	
   

  	
  230,731

  	
   

  	
  4,075

  	
   

  	
  10,947

  	
   

  	
  531,080

  	
   

  	
  0.34

  	
   

  	
  0.14

  	
   

  
	
  07200 INSULATION

  	
   

  	
  10,349

  	
   

  	
  8,780

  	
   

  	
  212

  	
   

  	
  351

  	
   

  	
  19,691

  	
   

  	
  0.01

  	
   

  	
  0.01

  	
   

  
	
  07240 EIFS

  	
   

  	
  120,524

  	
   

  	
  102,249

  	
   

  	
  2,465

  	
   

  	
  4,087

  	
   

  	
  229,325

  	
   

  	
  0.15

  	
   

  	
  0.06

  	
   

  
	
  07250
  SPRAY-ON-FIREPROOFING

  	
   

  	
  2,681,854

  	
   

  	
  2,181,547

  	
   

  	
  52,598

  	
   

  	
  87,189

  	
   

  	
  5,003,188

  	
   

  	
  3.22

  	
   

  	
  1.32

  	
   

  
	
  07400 METAL
  PANELS

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  07500 MEMBRANE
  ROOFING

  	
   

  	
  712,843

  	
   

  	
  604,756

  	
   

  	
  14,581

  	
   

  	
  24,170

  	
   

  	
  1,356,351

  	
   

  	
  0.87

  	
   

  	
  0.36

  	
   

  
	
  07900 CAULKING

  	
   

  	
  155,303

  	
   

  	
  131,755

  	
   

  	
  3,177

  	
   

  	
  5,266

  	
   

  	
  295,500

  	
   

  	
  0.19

  	
   

  	
  0.08

  	
   

  
	
  08100 METAL DOORS
  AND FRAMES

  	
   

  	
  159,915

  	
   

  	
  143,686

  	
   

  	
  723

  	
   

  	
  11,026

  	
   

  	
  315,350

  	
   

  	
  0.20

  	
   

  	
  0.08

  	
   

  
	
  08300 OVERHEAD
  DOORS

  	
   

  	
  9,319

  	
   

  	
  7,906

  	
   

  	
  191

  	
   

  	
  316

  	
   

  	
  17,732

  	
   

  	
  0.01

  	
   

  	
  0.00

  	
   

  
	
  08400 ENTRANCES
  AND STOREFRONTS

  	
   

  	
  259,272

  	
   

  	
  224,508

  	
   

  	
  124,690

  	
   

  	
  52,774

  	
   

  	
  661,243

  	
   

  	
  0.43

  	
   

  	
  0.17

  	
   

  
	
  08700 HARDWARE

  	
   

  	
  205,350

  	
   

  	
  186,160

  	
   

  	
  981

  	
   

  	
  12,508

  	
   

  	
  405,000

  	
   

  	
  0.26

  	
   

  	
  0.11

  	
   

  
	
  08800 GLAZING

  	
   

  	
  3,172,018

  	
   

  	
  90,174

  	
   

  	
  309,674

  	
   

  	
  289,854

  	
   

  	
  3,861,720

  	
   

  	
  2.49

  	
   

  	
  1.02

  	
   

  
	
  08900 CURTAINWALL

  	
   

  	
  36,473,741

  	
   

  	
  28,674,318

  	
   

  	
  915,568

  	
   

  	
  1,460,138

  	
   

  	
  67,523,765

  	
   

  	
  43.45

  	
   

  	
  17.80

  	
   

  
	
  09250 GYPSUM
  WALLBOARD

  	
   

  	
  3,563,899

  	
   

  	
  4,064,680

  	
   

  	
  70,978

  	
   

  	
  213,833

  	
   

  	
  7,913,391

  	
   

  	
  5.09

  	
   

  	
  2.09

  	
   

  
	
  09300 TILE

  	
   

  	
  663,124

  	
   

  	
  534,734

  	
   

  	
  717

  	
   

  	
  12,789

  	
   

  	
  1,211,365

  	
   

  	
  0.78

  	
   

  	
  0.32

  	
   

  
	
  09500 ACOUSTICAL
  CEILING TILE

  	
   

  	
  162,094

  	
   

  	
  121,825

  	
   

  	
  274

  	
   

  	
  3,574

  	
   

  	
  287,767

  	
   

  	
  0.19

  	
   

  	
  0.08

  	
   

  
	
  09650 RESILIENT
  FLOORING AND CARPET

  	
   

  	
  42,870

  	
   

  	
  33,922

  	
   

  	
  440

  	
   

  	
  730

  	
   

  	
  77,962

  	
   

  	
  0.05

  	
   

  	
  0.02

  	
   

  
	
  09660 SPECIAL
  FINISHES

  	
   

  	
  1,894,956

  	
   

  	
  1,513,458

  	
   

  	
  36,490

  	
   

  	
  394,756

  	
   

  	
  3,839,660

  	
   

  	
  2.47

  	
   

  	
  1.01

  	
   

  
	
  09900 PAINTING

  	
   

  	
  589,255

  	
   

  	
  494,616

  	
   

  	
  9,173

  	
   

  	
  24,536

  	
   

  	
  1,117,580

  	
   

  	
  0.72

  	
   

  	
  0.29

  	
   

  
	
  10000 SPECIALTIES

  	
   

  	
  416,380

  	
   

  	
  358,746

  	
   

  	
  2,002

  	
   

  	
  13,822

  	
   

  	
  790,950

  	
   

  	
  0.51

  	
   

  	
  0.21

  	
   

  
	
  10200 LOUVERS

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  10250 ACCESS
  FLOOR

  	
   

  	
  210,007

  	
   

  	
  -1,131

  	
   

  	
  -27

  	
   

  	
  -45

  	
   

  	
  208,863

  	
   

  	
  0.13

  	
   

  	
  0.06

  	
   

  
	
  10400 BUILDING
  SIGNAGE

  	
   

  	
  1,095,998

  	
   

  	
  929,813

  	
   

  	
  22,418

  	
   

  	
  37,162

  	
   

  	
  2,085,390

  	
   

  	
  1.34

  	
   

  	
  0.55

  	
   

  
	
  10532 CANOPIES

  	
   

  	
  938,064

  	
   

  	
  388,608

  	
   

  	
  9,369

  	
   

  	
  15,531

  	
   

  	
  1,351,571

  	
   

  	
  0.87

  	
   

  	
  0.36

  	
   

  
	
  12500 WINDOW
  WASHING EQUIPMENT

  	
   

  	
  647,096

  	
   

  	
  548,977

  	
   

  	
  13,236

  	
   

  	
  21,941

  	
   

  	
  1,231,250

  	
   

  	
  0.79

  	
   

  	
  0.32

  	
   

  
	
  13100 MAST

  	
   

  	
  776,515

  	
   

  	
  658,773

  	
   

  	
  15,883

  	
   

  	
  26,329

  	
   

  	
  1,477,500

  	
   

  	
  0.95

  	
   

  	
  0.39

  	
   

  
	
  13200 DAMPER

  	
   

  	
  647,096

  	
   

  	
  548,977

  	
   

  	
  13,236

  	
   

  	
  21,941

  	
   

  	
  1,231,250

  	
   

  	
  0.79

  	
   

  	
  0.32

  	
   

  
	
  14100 CONVEYANCES

  	
   

  	
  9,651,701

  	
   

  	
  12,402,581

  	
   

  	
  -119

  	
   

  	
  -197

  	
   

  	
  22,053,967

  	
   

  	
  14.19

  	
   

  	
  5.81

  	
   

  
	
  14200 TURNTABLE

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  
	
  15100 HVAC

  	
   

  	
  19,942,145

  	
   

  	
  16,852,444

  	
   

  	
  403,191

  	
   

  	
  668,359

  	
   

  	
  37,866,138

  	
   

  	
  24.37

  	
   

  	
  9.98

  	
   

  
	
  15200 PLUMBING

  	
   

  	
  2,800,035

  	
   

  	
  2,375,469

  	
   

  	
  57,273

  	
   

  	
  94,940

  	
   

  	
  5,327,717

  	
   

  	
  3.43

  	
   

  	
  1.40

  	
   

  
	
  15300 FIRE
  PROTECTION

  	
   

  	
  1,680,299

  	
   

  	
  1,425,518

  	
   

  	
  34,369

  	
   

  	
  56,973

  	
   

  	
  3,197,160

  	
   

  	
  2.06

  	
   

  	
  0.84

  	
   

  
	
  16000 ELECTRICAL

  	
   

  	
  14,199,562

  	
   

  	
  11,972,130

  	
   

  	
  288,650

  	
   

  	
  476,488

  	
   

  	
  26,938,830

  	
   

  	
  17.34

  	
   

  	
  7.10

  	
   

  
	
  SUBWAY ENTRANCE

  	
   

  	
  132,042

  	
   

  	
  112,020

  	
   

  	
  2,701

  	
   

  	
  4,477

  	
   

  	
  251,240

  	
   

  	
  0.16

  	
   

  	
  0.07

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TRADE SUB-TOTAL:

  	
   

  	
  159,913,464

  	
   

  	
  133,033,417

  	
   

  	
  3,483,666

  	
   

  	
  5,867,029

  	
   

  	
  302,297,576

  	
   

  	
  $

  	
  194.53

  	
   

  	
  79.68

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXTERIOR
  PROJECTION SIGNAGE EQUIPMENT

  	
   

  	
  (1,051,120.00

  	
  )

  	
  (891,740.00

  	
  )

  	
  (21,500.00

  	
  )

  	
  (35,640.00

  	
  )

  	
  (2,000,000

  	
  )

  	
  (1.29

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBWAY ENTRANCE
  WORK

  	
   

  	
  (132,041.69

  	
  )

  	
  (112,020.38

  	
  )

  	
  (2,700.83

  	
  )

  	
  (4,477.10

  	
  )

  	
  (251,240

  	
  )

  	
  (0.16

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NYTC TENANT WORK
  (Allocations)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Communicating
  Stairs

  	
   

  	
  (4,736,168

  	
  )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (4,736,168

  	
  )

  	
  (3.05

  	
  )

  	
   

  	
   

  
	
  2. Fin Tube
  Heating System

  	
   

  	
  (559,640

  	
  )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (559,640

  	
  )

  	
  (0.36

  	
  )

  	
   

  	
   

  
	
  3. Newsroom
  Skylight

  	
   

  	
  (1,782,100

  	
  )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (1,782,100

  	
  )

  	
  (1.15

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TRADE SUBTOTALS =

  	
   

  	
  151,652,394

  	
   

  	
  132,029,657

  	
   

  	
  3,459,465

  	
   

  	
  5,826,912

  	
   

  	
  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

  	
   

  	
  250,000

  	
   

  	
  250,000

  	
   

  	
  57.6049

  	
  %

  	
  144,012

  	
   

  	
   

  	
   

  	
  144,012

  	
  1

  
	
  2

  	
  TOTAL
  SITE ACQUISITION

  	
   

  	
  250,000

  	
   

  	
  250,000

  	
   

  	
  57.6049

  	
  %

  	
  144,012

  	
   

  	
   

  	
   

  	
  144,012

  	
  2

  
	
  3

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  3

  
	
  4

  	
  Traders:
  Base Building

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  4

  
	
  5

  	
  Tenant
  Contributions

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  5

  
	
  6

  	
  SPU
  Contribution

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  6

  
	
  7

  	
  Trades
  – Subway

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  7

  
	
  8

  	
  Pre-Construction
  Services

  	
   

  	
  606,667

  	
   

  	
  606,667

  	
   

  	
  57.9483

  	
  %

  	
  351,553

  	
   

  	
   

  	
   

  	
  351,553

  	
  8

  
	
  9

  	
  General
  Conditions/CM Fee

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  9

  
	
  10

  	
  Demolition
  Environmental

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  10

  
	
  11

  	
  Permits

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  11

  
	
  12

  	
  Bonds

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  12

  
	
  13

  	
  Owner’s
  Testing / Survey

  	
   

  	
  195,071

  	
   

  	
  195,071

  	
   

  	
  57.9483

  	
  %

  	
  113,040

  	
   

  	
   

  	
   

  	
  113,040

  	
  13

  
	
  14

  	
  Construction
  Contingency

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  14

  
	
  15

  	
  Design/Scope
  Contingency

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  15

  
	
  16

  	
  TOTAL
  HARD COSTS

  	
   

  	
  801,737

  	
   

  	
  801,737

  	
   

  	
  57.9483

  	
  %

  	
  464,593

  	
   

  	
   

  	
   

  	
  464,593

  	
  16

  
	
  17

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  17

  
	
  18

  	
  A &
  E Base

  	
   

  	
  3,926,439

  	
   

  	
  3,911,605

  	
   

  	
  57.9483

  	
  %

  	
  2,266,710

  	
   

  	
   

  	
   

  	
  2,266,710

  	
  18

  
	
  19

  	
  A &
  E Reimburseables

  	
   

  	
  431,558

  	
   

  	
  418,832

  	
   

  	
  57.9483

  	
  %

  	
  242,590

  	
   

  	
  8,000

  	
   

  	
  250,590

  	
  19

  
	
  20

  	
  A &
  E Consultants

  	
   

  	
  1,187,650

  	
   

  	
  1,129,504

  	
   

  	
  57.9483

  	
  %

  	
  654,529

  	
   

  	
  13,700

  	
   

  	
  668,229

  	
  20

  
	
  21

  	
  ARCHITECTURE &
  ENGINEERING

  	
   

  	
  5,545,645

  	
   

  	
  5,459,740

  	
   

  	
  57.9483

  	
  %

  	
  3,163,828

  	
   

  	
  21,700

  	
   

  	
  3,185,529

  	
  21

  
	
  24

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  24

  
	
  25

  	
  LEASING
  COMMISSIONS

  	
   

  	
  1,300,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  25

  
	
  26

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  26

  
	
  27

  	
  Legal
  – Ground Lse/Acqst/Tax Str.

  	
   

  	
  728,817

  	
   

  	
  30,000

  	
   

  	
  57.9483

  	
  %

  	
  17,384

  	
   

  	
   

  	
   

  	
  17,384

  	
  27

  
	
  28

  	
  Legal
  – Partnership & Develop Agreement

  	
   

  	
  49,791

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  28

  
	
  29

  	
  Legal
  – Financing/Condo

  	
   

  	
  9,200

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  29

  
	
  30

  	
  Legal
  – Leasing Office & Retail

  	
   

  	
  15,052

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  30

  
	
  31

  	
  LEGAL

  	
   

  	
  800,869

  	
   

  	
  30,000

  	
   

  	
  57.9483

  	
  %

  	
  17,384

  	
   

  	
   

  	
   

  	
  17,384

  	
  31

  
	
  32

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  32

  
	
  33

  	
  Construction
  Interest

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  33

  
	
  34

  	
  Financing
  Fees & Out-of Pocket

  	
   

  	
  57,201

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  34

  
	
  35

  	
  Mortgage
  Recording Tax

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  35

  
	
  36

  	
  Transfer
  Tax

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  36

  
	
  37

  	
  Title
  Insurance Fee

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  37

  
	
  38

  	
  Bank
  Inspection/Appraisal

  	
   

  	
  25,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  38

  
	
  39

  	
  TOTAL
  FINANCING

  	
   

  	
  82,201

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  39

  
	
  40

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  40

  
	
  41

  	
  Site
  Management

  	
   

  	
  4,450,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  41

  
	
  42

  	
  Marketing/Public
  Relations

  	
   

  	
  1,507,353

  	
   

  	
  286,747

  	
   

  	
  57.9483

  	
  %

  	
  166,165

  	
   

  	
   

  	
   

  	
  165,165

  	
  42

  
	
  43

  	
  Project
  Expenses

  	
   

  	
  70,204

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  43

  
	
  44

  	
  Signange
  / Art

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  44

  
	
  45

  	
  Public
  Process

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  45

  
	
  46

  	
  RE
  Taxes

  	
   

  	
  325

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  46

  
	
  47

  	
  Sunk
  Costs

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  47

  
	
  48

  	
  Insurance

  	
   

  	
  5,962

  	
   

  	
  5,962

  	
   

  	
  57.9483

  	
  %

  	
  3,455

  	
   

  	
   

  	
   

  	
  3,455

  	
  48

  
	
  49

  	
  TOTAL
  OTHER COSTS:

  	
   

  	
  6,033,844

  	
   

  	
  292,709

  	
   

  	
  57.9483

  	
  %

  	
  169,620

  	
   

  	
   

  	
   

  	
  169,620

  	
  49

  
	
  50

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  50

  
	
  51

  	
  TOTAL
  SOFT COSTS

  	
   

  	
  13,762,559

  	
   

  	
  5,782,449

  	
   

  	
  57.9483

  	
  %

  	
  3,350,833

  	
   

  	
  21,700

  	
   

  	
  3,372,533

  	
  51

  
	
  52

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  52

  
	
  53

  	
  SUB-TOTAL
  PROJECT COSTS

  	
   

  	
  14,814,297

  	
   

  	
  6,834,186

  	
   

  	
   

  	
   

  	
  3,959,438

  	
   

  	
  21,700

  	
   

  	
  3,981,138

  	
  53

  
	
  54

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  54

  
	
  55

  	
  ING
  Fee

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  55

  
	
  56

  	
  Development
  Contingency

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  56

  
	
  57

  	
  Development
  Costs

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
  57

  
	
  58

  	
  TOTAL
  PROJECT COST

  	
   

  	
  14,814,297

  	
   

  	
  6,834,186

  	
   

  	
   

  	
   

  	
  3,958,438

  	
   

  	
  21,700

  	
   

  	
  3,981,138

  	
  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

 

L-1

 

(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

 

L-2

 

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.

 

L-3

 

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

 

L-4

 

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

 

L-5

 

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

 

L-6

 

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

 

L-7

 

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).

 

L-8

 

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

 

L-9

 

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]

 

L-10

 

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

  	
   4

  
	
  ARTICLE
  2 Delivery and Use of Premises

  	
   8

  
	
  ARTICLE
  3 Escalations

  	
   12

  
	
  ARTICLE
  4 Security Deposit

  	
   24

  
	
  ARTICLE
  5 Subordination, Notice to Lessor under the Unit Lease and Mortgagees

  	
   25

  
	
  ARTICLE
  6 Quiet Enjoyment

  	
   27

  
	
  ARTICLE
  7 Assignment and Subletting

  	
   28

  
	
  ARTICLE
  8 Compliance with Laws

  	
   34

  
	
  ARTICLE
  9 Insurance

  	
   36

  
	
  ARTICLE
  10 Condominium Provisions

  	
   38

  
	
  ARTICLE
  11 Alterations

  	
   40

  
	
  ARTICLE
  12 Landlord’s and Tenant’s Property

  	
   42

  
	
  ARTICLE
  13 Repairs and Maintenance

  	
   42

  
	
  ARTICLE
  14 Electricity

  	
   45

  
	
  ARTICLE
  15 Landlord’s Services

  	
   46

  
	
  ARTICLE
  16 Access

  	
   50

  
	
  ARTICLE
  17 Notice of Occurrences

  	
   52

  
	
  ARTICLE
  18 Indemnification

  	
   52

  
	
  ARTICLE
  19 Damage or Destruction

  	
   53

  
	
  ARTICLE
  20 Eminent Domain

  	
   56

  
	
  ARTICLE
  21 Surrender

  	
   58

  
	
  ARTICLE
  22 Conditions of Limitation

  	
   59

  
	
  ARTICLE
  23 Reentry by Landlord

  	
   61

  
	
  ARTICLE
  24 Damages

  	
   62

  
	
  ARTICLE
  25 Affirmative Waivers

  	
   63

  
	
  ARTICLE
  26 No Waivers

  	
   64

  
	
  ARTICLE
  27 Curing Defaults

  	
   64

  
	
  ARTICLE
  28 Broker

  	
   66

  
	
  ARTICLE
  29 Notices

  	
   67

  
	
  ARTICLE
  30 Estoppel Certificates

  	
   68

  
	
  ARTICLE
  31 Memorandum of Lease

  	
   68

  
	
  ARTICLE
  32 No Representations by Landlord

  	
   69

  
	
  ARTICLE
  33 Hazardous Materials

  	
   69

  
	
  ARTICLE
  34 Miscellaneous Provisions and Definitions

  	
   70

  
	
  ARTICLE
  35 Arbitration

  	
   76

  
	
  ARTICLE
  36 Extension of Term Options

  	
   78

  

 

 

EXHIBITS

 

	
  Exhibit A
  –

  	
  Land

  	
   A-1

  
	
  Exhibit B
  –

  	
  Certificate
  of Occupancy

  	
   B-1

  
	
  Exhibit C
  –

  	
  Rentable
  Square Feet Measurement Standard

  	
   C-1

  
	
  Exhibit D
  –

  	
  Form of
  Letter of Credit

  	
   D-1

  
	
  Exhibit E
  –

  	
  Mortgagee
  SNDA

  	
   E-1

  
	
  Exhibit F
  –

  	
  Unit
  Lease SNDA

  	
   F-1

  
	
  Exhibit G
  –

  	
  Exclusive
  Use Rights of Other Tenants

  	
   G-1

  
	
  Exhibit H
  –

  	
  HVAC
  Specifications

  	
   H-1

  
	
  Exhibit I
  –

  	
  Building
  Standards

  	
   I-1

  
	
  Exhibit J
  –

  	
  Cleaning
  Specifications

  	
   J-1

  
	
  Exhibit K
  –

  	
  Form of
  Guaranty

  	
   K-1

  
	
  Exhibit L
  –

  	
  Form of
  Confidentiality Agreement

  	
   L-1

  
	
  Exhibit M
  –

  	
  Building
  Systems

  	
   M-1

  

 

 

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.

 

23

 

ARTICLE 4

Security Deposit

 

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.

 

27

 

ARTICLE 7

Assignment and Subletting

 

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)

 

(13) The
provisions of (b) will only apply if Premises is comprised of at least one
(1) full floor.

 

39

 

ARTICLE 11

Alterations

 

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,

 

41

 

ARTICLE 12

Landlord’s and Tenant’s
Property

 

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 applicable.

 

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

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
						

 

28

 

	
  with a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
  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
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.

 

 

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

  	
   

  	
  $

  	
  3,172,270

  	
   

  	
  $

  	
  4,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  · 
  Entrances and Storefronts

  	
   

  	
  3,141,800

  	
   

  	
  5,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  · 
  Lobby Garden Landscaping

  	
   

  	
  245,000

  	
   

  	
  350,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  · 
  Building Canopies

  	
   

  	
  1,377,750

  	
   

  	
  1,700,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  · 
  Ground Floor Interior Glass & Courtyard Curtainwall

  	
   

  	
  1,477,550

  	
   

  	
  2,200,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  · 
  Exterior Lighting, Signage & Artwork

  	
   

  	
  2, 500,000

  	
   

  	
  3,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  · 
  Rooftop Facility and Garden

  	
   

  	
  2,777,066

  	
   

  	
  3,400,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

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-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]