Document:

Exhibit 10.2

 

Execution Counterpart

 

FIRST AMENDMENT TO

OPERATING AGREEMENT OF

THE NEW YORK TIMES BUILDING LLC

(a New York limited liability company)

 

FIRST
AMENDMENT TO OPERATING AGREEMENT OF THE NEW YORK TIMES BUILDING LLC (this “Amendment”)
dated this 25th  day
of June, 2004 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”).

 

WHEREAS:

 

A.                                  FC Member and NYTC Member have formed a
limited liability company under the name of The New York Times Building LLC
(the “Company”) and in connection therewith executed the Operating
Agreement of the Company dated December 12, 2001 (the “Operating
Agreement”); and

 

B.                                    Simultaneously with the execution of this
Amendment, the Company is obtaining a construction loan from GMAC Commercial
Mortgage Corporation, as agent (the “Construction Lender”) in the
maximum principal amount of $320,000,000.00  (the
“Construction Loan”) to finance a portion of the Total Costs of the
Project (as defined in the Operating Agreement) pursuant to a Building Loan
Agreement (the “Building Loan Agreement”) and a Project Loan Agreement
(the “Project Loan Agreement”), each between the Construction Lender and
the Company and each dated as of the date hereof (collectively, the “Loan
Agreements”); and

 

C.                                    The Construction Lender has required, as a
condition to making the Construction Loan, that the Company shall have funded,
prior to and as a condition of Construction Lender disbursing any proceeds of
the Construction Loan, $207,046,237.00  (the “Upfront Equity”), which
amount represents $87,547,843.00  with respect to FC Member (the “FC
Upfront Equity”) and $119,498,394.00  with respect to NYTC Member (the “NYTC
Upfront Equity”); and

 

D.                                   NYTC Member has elected not to borrow any
portion of NYTC Member’s Share of the Total Costs of the Project through the
Construction Loan and, in lieu of such borrowing, NYTC Member has agreed,
subject to the terms and conditions of this Amendment in addition to making
Capital Contributions to the Company in respect of the NYTC Upfront Equity, to
make Capital Contributions to the Company in an amount not to exceed $222,258,152.00  (the “NYTC Construction Equity”)
subject to the last sentence of the final paragraph of paragraph 2(a) of

 

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this Amendment in order to
fund NYTC Member’s Share of the Total Costs of the Project; and

 

E.             The NYTC Construction Equity includes an
amount equal to $11,649,593.00  that will be reimbursed to NYTC Member by
the Company when FC Member makes a cash Capital Contribution to the Company in
such amount in satisfaction of its obligation to make the True-Up Payment, such
Capital Contribution on account of the True-Up Payment to be made by FC Member
as and when required by Section 3.01(c) of the Operating Agreement, it
being hereby agreed that the amount of the True-Up Payment required by
Section 3.01(c) of the Operating Agreement is $11,649,593.00.  After
such True-Up Payment is made, the amount of the NYTC Construction Equity shall
be deemed reduced by the amount of the True-Up Payment; and

 

F.             The Construction Lender has further required,
as a condition to making the Construction Loan, that (in addition to funding
the NYTC Upfront Equity) NYTC Member fund 100% of the NYTC Construction Equity
prior to, and as a condition of, Construction Lender disbursing any proceeds of
the Construction Loan and that the NYTC Construction Equity be applied to pay
the Total Costs of the Project (i.e. both FC Member’s and NYTC Member’s
respective Shares of the Total Costs of the Project) required to be paid from
and after the date hereof until the Construction Loan proceeds are disbursed in
accordance with the terms of the Loan Agreements; and

 

G.            By reason of such funding by NYTC Member of
the NYTC Construction Equity, NYTC Member will in effect fund for the benefit
of FC Member a portion of FC Member’s Share of the Total Costs of the Project
(the total amount of the NYTC Construction Equity which is so funded for the
benefit of FC Member in accordance with paragraph 2(b) below hereinafter being
called the “FC Funded Amount”); and

 

H.            At such time as FC Member has funded 100% of
the FC Upfront Equity, the NYTC Member shall be obligated to commence to fund
the FC Funded Amount in accordance with the terms and conditions of this
Amendment, whether or not the NYTC Upfront Equity has been fully funded at such
time.

 

I.              The Members have agreed that the FC Funded
Amount and interest thereon as hereinafter provided shall be repaid to NYTC
Member as more particularly set forth in this Amendment; and

 

J.             The Members desire to modify the Operating
Agreement to provide for the funding of the NYTC Construction Equity, the
repayment of the FC Funded Amount, and certain other matters, all upon the
terms and conditions hereinafter set forth.

 

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NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by both Members, the Members agree to modify the Operating
Agreement as follows:

 

1.             Defined Terms.  All
capitalized terms used herein shall have the same meaning ascribed to them in
the Operating Agreement unless otherwise defined herein.

 

2.             NYTC Construction Equity.

 

(a)  NYTC Member shall be obligated to make
Capital Contributions to the Company in the amount of the NYTC Construction
Equity.  The obligation to fund the NYTC
Construction Equity shall not limit the obligation of NYTC Member or FC Member
to make Capital Contributions otherwise required under the Operating Agreement.  The NYTC Construction Equity shall be
contributed by NTYC Member in installments (with the same frequency provided
for disbursements of the Construction Loan in the Loan Agreements) only to pay
costs included in Total Costs of the Project and approved by the Construction
Lender.  Notwithstanding anything to the
contrary contained in this Amendment, the obligation of NYTC Member to
contribute any installment of the NYTC Construction Equity shall be conditioned
upon the receipt and review by the Construction Lender of the applicable Draw
Request (as defined in the applicable Loan Agreement) and the delivery by the
Construction Lender to the Company of the notification required to be delivered
by the Construction Lender pursuant to Section 4.04(b) of the applicable
Loan Agreement (a “Section 4.04(b) Notice”).

 

Without limiting the generality of the
foregoing conditions, NYTC Member shall not be obligated to make any
disbursement of the NYTC Construction Equity at any time that a loan balancing
payment is due by FC Member pursuant to Section 3.06 of either of the Loan
Agreements (or would be due by FC Member under Section 3.06 of either of
the Loan Agreements in the event the Construction Loan was in an amount equal
to the Construction Financing and a comparable Construction Loan Draw were
requested of the Construction Lender). 
Upon demand of the Construction Lender or either Member after giving
effect to the amounts represented by the applicable Draw Request and the
allocation of such amounts, the Members, to the extent applicable, shall each
make Capital Contributions to the Company as necessary to place the
Construction Loan “in balance” in accordance with Section 3.06 of the
applicable Loan Agreement and Section 3.01(g) of the Operating Agreement.

 

(b)  The entire amount of each disbursement of
the NYTC Construction Equity shall be allocated between NYTC Member’s and FC
Member’s respective Share of the Total Costs of the Project based upon the
costs to which such disbursement shall apply in accordance with
Article XII of the Operating Agreement as supplemented by the chart
attached as Exhibit A hereto (the “Allocation Provisions”).  The aggregate amount of all disbursements of
the NYTC Construction Equity which from time to time represent payment of FC
Member’s Share of Total Costs of the Project shall constitute the FC Funded
Amount.

 

(c)  The NYTC Construction Equity, the
Construction Loan and any amounts funded by NYTC Member under paragraph 6 of
this Amendment are hereinafter collectively referred to as the “Construction
Financing”.

 

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3.             FC Funded Amount.

 

(a)  The balance of the FC Funded Amount not yet
repaid to NYTC Member from time to time (the “FC Funded Balance”) shall
bear interest at the Interest Rate (as defined in the Loan Agreements) that
would be (or would have been) in effect from time to time under the Loan
Agreements (whether or not the same is in full force and effect) (the “Construction
Loan Interest Rate”) from the date funded by NYTC Member until repaid to
NYTC Member, subject to paragraph 5(d) hereof.  Interest on the FC Funded Balance shall be calculated in the
manner provided for the calculation of interest in the Loan Agreements.  All interest on the FC Funded Balance shall
be deemed allocated 100% to FC Member for purposes of determining each Member’s
allocated Share of the Total Costs of the Project.

 

(b)  Subject to the provisions of paragraph 5
hereof, the FC Funded Balance, together with interest thereon as set forth in
this Amendment, shall be repaid to NYTC Member as follows: The portion of each
disbursement of the Construction Loan which is allocated (pursuant to the
Allocation Provisions) to NYTC Member’s Share of the Total Costs of the Project
shall be credited against the FC Funded Balance as of the date such
disbursement is made by the Construction Lender, applied first to interest on
the FC Funded Balance, then to reduce the FC Funded Balance.  To the extent the total amount credited
against NYTC Member’s Share of the Total Costs of the Project following the
final disbursement of the Construction Loan is less than the total FC Funded
Balance and all accrued interest thereon, then FC Member shall within five (5)
business days after written demand of NYTC Member make a Capital Contribution
in the amount of the FC Funded Balance, together with all accrued interest
thereon, and such Capital Contribution shall be immediately distributed to NYTC
Member in payment of the FC Funded Balance and interest thereon.

 

(c)  The parties hereto (i) acknowledge and agree
that the amounts designated as “interest” on the FC Funded Balance pursuant to
paragraphs 3 and 5 hereof shall be treated as “guaranteed payments” to NYTC
Member in accordance with Section 707(c) of the Internal Revenue Code of
1986, as amended, and Treasury Regulation Section 1.707-l(c), and (ii)
agree to take no position inconsistent with such treatment described in clause
(i) of this sentence for U.S. federal income tax purposes (including without
limitation on any Company tax return).

 

4.             Other Capital Contributions. 
Except as modified hereby, the Members shall continue to make all
Capital Contributions as and when required pursuant to the Operating Agreement.

 

5.             Non-Funding Event.

 

(a)  A “Non-Funding
Event” shall be deemed to have occurred if:

 

(i)      the Construction Lender refuses or fails to make any requested
disbursement of the Construction Loan within the “Applicable Cure Period”
(as defined in paragraph 5(i) hereof) after the Requested Advance Date (as
defined in the Loan Agreements), whether or not such refusal or failure is
permitted in accordance with the Loan Agreement (unless such 

 

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failure
or refusal is solely the result of a default by NYTC Member of its obligations
under the Operating Agreement or the Loan Agreements); or

 

(ii)     the Construction Lender fails or refuses to deliver a
Section 4.04(b) Notice (unless the failure of such condition is solely the
result of a default by NYTC Member of its obligations under the Operating
Agreement or the Loan Agreements) and the failure or refusal continues after
the date the Construction Lender is required to deliver a Section 4.04(b)
Notice in accordance with the Loan Agreements (the “Lender Confirmation Date”)
for a period in excess of the Applicable Cure Period.

 

A Non-Funding Event shall be deemed to have
ended when (A) in the case of clause (i) of the preceding sentence, funding of
the Construction Loan (or replacement financing for the Construction Loan
obtained by the Company) recommences; (B) in the case of clause (ii) of the
preceding sentence, the Construction Lender confirms that a proposed
disbursement by NYTC Member shall be credited against the NYTC Construction
Equity; or (C) the Company, or either Member on behalf of the Company, has
obtained replacement construction financing with respect to the Project, it
being understood that, prior to the Conversion Date, such replacement
construction financing shall encumber the entire Project.  In addition, a Non-Funding Event shall not
be deemed to be continuing if and for so long as FC Member makes Capital
Contributions to the Company as and when required to pay its Share of Total
Costs of the Project which would otherwise have been funded through the
Construction Financing but for the occurrence of the Non-Funding Event or such
costs are funded by FCE or ING  Vastgoed.

 

(b)  In the event a Non-Funding Event occurs
which is not solely the result of a default by FC Member under the Operating
Agreement, the Development Agreement or the Loan Agreements (a “No-Fault
Non-Funding Event”), then the occurrence of such No-Fault Non-Funding Event
shall not constitute a default by either party under the Operating Agreement
or, except as provided in paragraph 5(f) hereof, entitle either Member to
require the other Member to make a Capital Contribution to the Company not
otherwise required under the Operating Agreement.  Notwithstanding the foregoing, upon the occurrence of such
No-Fault Non-Funding Event and while such No-Fault Non-Funding Event continues,
for period not to exceed thirty (30) days following the occurrence of such
No-Fault Non-Funding Event (the “Reassessment Period”), the Members
shall, in accordance with the Operating Agreement, determine what measures to
take in response to the No-Fault Non-Funding Event, including, without
limitation, whether to exercise the Company’s contractual and equitable
remedies against the Construction Lender.

 

(c)  At any time following the Reassessment
Period during which a No-Fault Non-Funding Event is continuing, NYTC Member
shall have the right, in its sole and absolute discretion, to elect to continue
the construction of the Project in accordance with paragraph 6 hereof, which
right shall be exercised by written notice given by NYTC Member to FC Member at
any time or from time to time while such No-Fault Non-Funding Event is
continuing (each, a “Continuation Notice”).  NYTC Member shall have the right at any time and from time to
time in its absolute and sole discretion during the continuance of a
Non-Funding Event, to stop the construction of the Project after it has given a
Continuation Notice.

 

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(d)  If a Non-Funding Event occurs and continues
for a period (the “Interest Grace Period”) of 180 days (in the case of a
No-Fault Non-Funding Event) or 5 days (in the case of any Non-Funding Event
other than an a No-Fault Non Funding Event), then for the period beginning on
the day following the Interest Grace Period and for so long as such Non-Funding
Event continues, the FC Funded Balance shall bear interest at (i) in the case
of a No-Fault Non-Funding Event, one percent (1%) per annum in excess of the
Construction Loan Interest Rate, and (ii) in the case of any Non-Funding Event
other than a No-Fault Non Funding Event, the Default Rate (as defined in the Loan
Agreements).

 

(e)  From and after the occurrence of a
Non-Funding Event and until the FC Funded Balance and all interest thereon is
paid in full, all income, revenue, and proceeds, derived from the ownership,
operation, leasing, financing, sale or other disposition of the Project or FC
Member Space, including, without limitation, all Net Cash Flow, Net Refinancing
Proceeds and Net Sales Proceeds, which would otherwise be distributed or paid
to FC Member shall be paid to NYTC Member and applied first against interest on
the FC Funded Balance and then to reduce the FC Balance.

 

(f)  Notwithstanding anything to the contrary
contained in this Amendment, in the event (i) a Non-Funding Event has occurred
and is continuing, and (ii) the FC Funded Balance, together with interest
thereon, has not been repaid to NYTC Member on or before the date (the “Repayment
Deadline”) which is the earlier to occur of (x) three (3) months after the
Original Maturity Date (as defined in the Loan Agreements), or (y) such earlier
date as the Construction Lender either accelerates the Construction Loan on
account of a default by the Company thereunder (other than solely as a result
of a default by NYTC Member of its obligations under the Operating Agreement or
the Loan Agreements) or commences any action or proceeding to obtain repayment
of the Construction Loan or foreclose the mortgage securing the same, FC Member
shall make a Capital Contribution on the Repayment Deadline in the amount of
the FC Funded Balance, together with all accrued interest thereon, and such
Capital Contribution shall be immediately distributed to NYTC Member in payment
of the FC Funded Balance.

 

(g)  In the event a Non-Funding Event occurs
which is solely the result of a default by FC Member under the Operating
Agreement, the Development Agreement or the Loan Agreements, then NYTC Member
shall be entitled, subject to applicable notice and grace provisions, to
exercise all rights and remedies available to NYTC Member under the Operating
Agreement or otherwise in respect of such default.

 

(h)  Notwithstanding anything to the contrary
contained in this Amendment or the Operating Agreement, at any time following
the occurrence of a Non-Funding Event (and regardless of whether a Continuation
Notice has been given) and prior to the Conversion Date, FC Member and/or NYT
Member shall have the right and authority to obtain replacement construction
financing with respect to the Project on behalf of the Company and to cause the
Company to enter into all documents and agreements required in connection with
such replacement construction financing, including, without limitation,
mortgages and other security instruments encumbering the entire Project, and
NYTC Member (or FC Member, as the case may be) shall deliver, and shall cause
NYTC (or FCE, as the case may be) to deliver, any documents required to be
delivered in connection with such replacement construction financing,

 

6

 

provided that such replacement construction financing
shall be on terms that are not less favorable, in any material respect, to the
Company, NYTC Member, NYTC, FCE, or ING Vastgoed than the Construction Loan,
unless approved by any such party as to whom the terms are materially less
favorable.

 

(i)  As used herein the, term “Applicable Cure
Period” shall mean five (5) Business Days; provided, however, that:

 

(x)            in the event the Construction Lender advises
the Company that the reason for its failure or refusal to comply with its
obligations set forth in clauses (i) or (ii) of paragraph 5(a) hereof, as the
case may be, is the existence of one or more mechanic’s liens against the
Project, the Applicable Cure Period shall be extended, subject to the last
sentence of this paragraph, until the last date on which such mechanic’s
lien(s) must be removed or bonded under the Loan Agreements before the
Construction Lender may declare a default under the Loan Agreements on account
thereof, and

 

(y)           in the event the Construction Lender advises the Company that the
reason for its failure or refusal to comply with its obligations set forth in
clauses (i) or (ii) of paragraph 5(a) hereof, as the case may be, is a request
for an additional submission of information or documentation with respect to
the draw request in question which cannot reasonably be obtained and furnished
within such five (5) Business Day Period, then, subject to the last sentence of
this paragraph 5(i), the Applicable Cure Period shall be extended for the
period of time (but not later than 30 days after the Requested Draw Date or
Lender Confirmation Date in question) that the Company is diligently pursuing
obtaining such additional information or documentation.

 

Notwithstanding anything to the contrary
contained in this Amendment, the Applicable Cure Period shall in all events
immediately terminate (and a Non-Funding Event shall be deemed to exist) in the
event that, as a result of the failure or refusal of the Construction Lender to
fund any portion of the Construction Loan or approve the disbursement of NYT Construction
Equity, the construction of the Project or the performance of any material
element of the work involved in the construction of the Project shall cease or
NYTC Member reasonably believes that such a cessation is imminent.

 

6.             NYTC Member Election to
Continue Construction of the Project.

 

(a)  In the event NYTC Member gives a
Continuation Notice and until the Non-Funding Event in question ceases as
provided in paragraph 5(a) hereof, NYTC Member may take such steps (including
with respect to the phasing of the work) as NYTC Member elects in its sole
discretion to continue the construction of all or any portion of the Project,
including making Capital Contributions to pay such costs related to the Project
as NYTC Member shall, in its sole and absolute discretion, elect to pay,
provided, however, the exercise by NYTC Member of its rights under this
paragraph shall not (i) reduce the size of the Building or the number of
floors,

 

7

 

and must otherwise comply with the
requirements of the Ground Lease, or (ii) permanently eliminate any common area
work and finishes or involve a permanent change to the floor plates, core fire
stairs, building MEP or vertical transportation systems in the FC Member Units;
and provided further that any such steps permitted pursuant to this paragraph
must be of such a nature that FC Member can reinstate any modified items to
their original design if, in the future, a replacement loan is secured, the
Non-Funding Event ceases, or if FC Member elects to fund equity to continue to
fund its share of Total Costs of the Project, it being acknowledged and agreed
that all costs associated with reinstating any such modified items to their
original design shall be borne solely by FC Member.  Even though NYTC Member has sole discretion, it will consult with
FC Member in pursuing work under this paragraph.  In no event shall NYTC Member be required to fund any Capital
Contributions to make any payments other than those so elected by NYTC Member,
and in no event shall NYTC Member be required to make any payments to FC Member
or its affiliates.  To the extent any
such Capital Contributions made by NYTC Member represent FC Member’s Share of
the Total Costs of the Project, such Contributions shall be added to the FC
Funded Balance, and shall bear interest as provided in this Amendment and shall
be repaid by FC Member as provided in this Amendment.

 

(b)
During the period following the giving of a Continuation Notice and until the
Non-Funding Event in question ceases or such earlier date as the FC Funded
Balance and all interest accrued thereon is refunded to NYTC Member, NYTC shall
have the following rights and authority, which may be exercised by NYTC Member
on behalf of the Company without the consent or approval of FC Member, but
subject to paragraph 6(a) hereof:

 

(i)            to modify the plans and specifications for
the Project as may be necessary to complete the work which NYTC Member has
elected to perform;

 

(ii)           to modify the GMP Contract, the Architect’s Agreement and any other
contract or agreement with respect to the Project to the extent necessary or
appropriate to complete the work which NYTC Member has elected to perform;

 

(iii)          to delay or defer converting the Project to the condominium regime contemplated
in the Operating Agreement;

 

(iv)          to amend the Ground Lease to extend the time period to complete the
Project; and

 

(v)           to take all other actions reasonably necessary or reasonably
appropriate in connection with the completion of the Project and the management
and operation of the Project, including enforcing the rights of the Company
under any contractual arrangements with third parties.

 

Notwithstanding the foregoing, NYTC Member
shall not, without the consent of FC Member, take any of the following actions:
(i) admit new members, (ii) reduce FC Member’s interest in

 

8

 

the Project, (iii) make any capital calls
pursuant to Section 3.01(g) under the Operating Agreement (provided that
the foregoing shall not limit NYTC Member’s right to make a capital call
pursuant to paragraph 5(f) of this Amendment), (iv) incur any indebtedness on
behalf of the Company, or (v) interfere with or prevent the use and occupancy
of the Project by tenants with whom NYTC Member has entered into
non-disturbance agreements in accordance with Section 5.15 of the
Operating Agreement.

 

(c)  The exercise by NYTC Member of the foregoing
rights shall not relieve FC Member from any of its obligations with respect to
the Project under the Operating Agreement.

 

(d)  If either Member obtains a replacement loan
secured by the Project, which contemplates funding of the FC Funded Balance in
accordance with the terms of the Loan Agreements, then FC Member and NYTC
Member shall cooperate (at no additional cost to NYTC Member) to modify the GMP
Contract and other relevant agreements to provide for the completion of the
Building as set forth in the Loan Agreements. 
If such replacement loan is obtained prior to the date on which the
Building Loan would otherwise have matured, NYTC Member shall continue to be
obligated to provide the Extension Loan on the terms and conditions as set
forth in the Operating Agreement, as amended by this Agreement.

 

7.             NYTC Extension Loan; True-
Up Payment.  The amount of the NYTC Extension Loan
required to be made by NYTC Member shall be $119,498,000.00. 
To the extent NYTC Member realizes savings (“NYTC Cost
Savings”), as determined on the date the Extension Loan is made and from
time to time thereafter in accordance with the provisions of the Loan
Agreements governing the calculation and apportionment of such cost savings and
the resolution of disputes regarding same, in NYTC Member’s Share of the Total
Costs of the Project (which is projected to be $341,756,546.00 as of the closing of the
Construction Loan and to be $330,106,953.00 after the NYTC Member is reimbursed for
the True-Up Payment), the Construction Lender shall (and the construction loan
documents shall provide) disburse to NYTC Member an amount equal to the amount
of such savings, which amount, when paid, shall reduce the amount of the FC
Funded Balance dollar-for-dollar, as and when provided under the Loan
Agreements.  Notwithstanding anything to
the contrary provided in Section 6.03(ii) and Exhibit R of the Operating
Agreement, the NYTC Extension Loan shall be subordinated to the mortgages which
secure the Construction Loan pursuant to the subordination and intercreditor
agreement attached as Exhibit R to the Loan Agreements.  The amount of the True-Up Payment required
by Section 3.01(c) of the Operating Agreement shall be $11,649,593.00.  Without limiting the
applicable provision of the Operating Agreement and any conditions set forth
therein, the FC Member and the NYTC Member each confirm that the NYTC Member’s
obligation to make the NYTC Extension Loan shall be conditioned upon the FC
Member making the True-Up Payment in the amount aforesaid as and when required
pursuant to Section 3.01(c) of the Operating Agreement.

 

8.             Security Agreement.  Concurrently
with the execution of this Amendment, FC Member is amending the existing
Security Agreement in favor of NYTC Member to grant NYTC Member a pledge of its
interest in the Company to secure the repayment of the FC Funded Amount in
accordance with this Amendment.

 

9

 

9.             Guarantees.  Concurrently
with the execution of this Amendment,

 

(a)  FCE is executing (i) a completion guaranty
in favor of NYTC Member in the form provided to the Construction Lender pursuant
to which FCE agrees to complete the Project in the event NYTC Member funds the
NYTC Construction Equity, any amounts it is required to fund under the
Development Agreement and Operating Agreement, and any additional funds (not to
exceed the Construction Loan amount) required to pay project costs, and (ii) a
non-recourse guaranty in favor of NYTC Member in the form provided to the
Construction Lender guarantying losses resulting from standard recourse
carve-outs which recourse carve outs shall be modified to include the
carve-outs in the guaranty that is to be given by FCE with respect to the
Extension Loan; and

 

(b)  NYTC is executing an amendment to that
certain Guaranty dated as of December 12, 2001 with respect to NYTC
Member’s Capital Contributions to guaranty the obligation of NYTC Member to
make the Capital Contributions which constitute the NYTC Construction Equity in
accordance with the terms and conditions of this Amendment.

 

10.            Loan Fees and Expenses.  All fees and
expenses with respect to the Construction Loan shall be allocated to FC Member,
except as shown in Exhibit B attached, which fees shall be allocated
between FC Member and NYTC Member in the proportions identified therein.  Notwithstanding the foregoing, each of NYTC
Member and FC Member shall be solely responsible for its separate legal fees
and expenses.  Concurrently with the
execution of this Amendment, FCE is delivering to NYTC a guaranty of the
obligation of FC Member to make a Capital Contribution to pay the exit fee
payable to the Construction Lender.

 

11.           Section 5.12
(Adjustment to NYTC Member Space and FC Member Space).  The
parties hereby confirm that NYTC Member did not elect to purchase or lease
additional space pursuant to Section 5.12 of the Operating Agreement, and
that the option to so elect has lapsed and is of no further force or effect.

 

12.           Arbitration of Disputes with
respect to Draw Requests during the Term of the Construction Loan.  Notwithstanding
anything to the contrary contained in the Operating Agreement, including
without limitation Article XI thereof, so long as the Construction Loan is
outstanding, any dispute between the Members with respect to any Draw Request
(as defined in the Loan Agreements) under the Construction Loan which is
permitted under paragraph 13 hereof shall be determined and resolved solely by
arbitration (and not by litigation) which is commenced not later than twenty
(20) days after the date of such Draw Request and conducted in the County, City
and State of New York in accordance with the then applicable commercial
arbitration rules of the American Arbitration Association.  Other than as permitted under paragraph 13
hereof and this paragraph 12, the Members shall not be entitled to dispute any
Draw Request.  If the terms of this
paragraph 12 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
paragraph 12.

 

(a)  The arbitration procedures shall commence
when either Member submits the matter to arbitration by notice to the other
Member and to the arbitrator.  The
Members have as

 

10

 

of the date hereof appointed the following
individual as the arbitrator: Mr. Steven Charney.  If such arbitrator (or any successor arbitrator) resigns or
cannot fulfill the arbitrator’s obligations, the Members shall appoint another
independent and unaffiliated individual who has not less than (10) years
experience with respect to the subject matter at hand.

 

(b)  Not later than six (6) Business Days after
the arbitration procedure has commenced, the arbitrator shall finalize its
decision regarding the resolution of the dispute or matter and shall promptly
provide a copy of such submissions to the Members.  The arbitrator’s decision shall be conclusive, final and binding
upon the Members, 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 arbitrator as well as
expenses incident to the proceedings, shall be assessed as the arbitrator
determines, 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.

 

11

 

13.          Draw Requests under the
Construction Loan.  FC Member shall have the sole right and
authority on behalf of the Company to sign and submit all Draw Requests (as
defined in the Loan Agreements) under the Loan Agreements.  It is acknowledged, however, that the NYTC
Member shall have the right, after the submission of any Draw Request, to
review such Draw Request and, in accordance with the provisions of paragraph 12
hereof, to dispute (a) any allocation of costs between the FC Member Space and
the NYTC Member Space in such Draw Request as contemplated by the last
paragraph of Section 12.01 of the Operating Agreement, or (b) whether any
costs in such Draw Request were authorized by the Operating Agreement.  However, in no event shall the NYTC Member
have the right to delay (or request the delay of) the making of any Advances
(as defined in the Loan Agreements), even if the NYTC Member is disputing a
Draw Request in accordance with the previous sentence; provided, that the
foregoing shall not be deemed to limit NYTC Member’s right, as between NYTC
Member and FC Member, to dispute a Draw Request under paragraph 12 hereof in
accordance with the previous sentence after such Draw Request is made so long
as, if such dispute is not otherwise resolved, an arbitration relating to such
dispute is commenced within twenty (20) days after the date of the applicable
Draw Request.  The Construction Lender
is an intended third-party beneficiary to the foregoing three sentences of this
paragraph 13.  To the extent it is
determined that the allocation of costs between the FC Member Space and the
NYTC Member Space under any Draw Request was incorrect, then FC Member shall
cause such costs to be reallocated in the next succeeding Draw Request pursuant
to Section 3.20 of the Loan Agreements. 
To the extent it is determined that any Draw Request was for costs not
authorized by the Operating Agreement, FC Member shall, within ten (10) days
after such determination becomes final, make a capital contribution to the
Company to reimburse the Company for such unauthorized costs.

 

14.          Additional Modifications.  The
Operating Agreement is further modified as follows:

 

(a)  For purposes of computing each Member’s
respective Share of the Total Costs of the Project not financed under
Section 3.01(g), the reference to the principal amount of the Construction
Loan shall be deemed to refer to the Construction Financing.

 

(b)  Section 3.01(h) of the Operating
Agreement is hereby modified to delete all references to NYTC Member’s
obligation to make a capital contribution to repay the Construction Loan, it
being acknowledged that, subject to the funding of the NYTC Extension Loan if
and to the extent provided in the Operating Agreement and paragraph 7 of this Amendment,
FC Member shall be solely obligated to make all such Capital Contributions
required to repay the Construction Loan.

 

(c)  All references to the NYTC Guaranteed
Amount, Excess NYTC Guaranteed Amount and the requirement of a delivery of a
New York Times Company payment guaranty of the Construction Loan are deleted
and the following definition shall replace the existing definition of “NYTC
Extension Loan” in Section 1.84 of the Operating Agreement:

 

1.84         “NYTC Extension Loan” means a payment by or on behalf of NYTC
Member to the Construction Lender in an amount equal to $119,498,000.00 in
exchange for a release of the lien of the

 

12

 

Construction Loan from all
NYTC Individual Units and the SPU Unit (as each is defined in the Condominium
Declaration), which payment shall constitute a loan by NYTC Member to FC
Member, all pursuant to Section 6.03 hereof.”

 

(d)  Notwithstanding anything to the contrary
contained in Section 6.03, the Extension Loan, if made, shall be made by
NYTC, NYTC Member or a direct or indirect wholly-owned subsidiary of NYTC, or
any other party acceptable to Construction Lender.

 

(e)  The references to “Exhibit Q-l” and “Exhibit
Q-2” in Section 6.03(ii) shall be references to “Exhibit Q”.

 

(f)  With respect to the giving of notices under
Section 14.02, notices to be sent to Swidler Berlin Shereff Freidman, LLP
shall hereafter instead be directed to:

 

Piper Rudnick LLP

1251 Avenue of the Americas

New York, New York 10020

Attention: Martin D. Polevoy, Esq.

 

15.          Condominium Declaration.

 

(a)  Notwithstanding anything to the contrary
contained in the form of Condominium Declaration attached as Exhibit E to the
Operating Agreement, the right of first offer to lease in favor of NYTC under
Section 5(d) of Article XX thereof, shall not become effective as to
any of the First Offer Space (as defined in the form of Condominium Declaration
attached as Exhibit E to the Operating Agreement) until the earlier of (i) the
first anniversary of the Completion Date and (ii) the date on which such
portion of the First Offer Space becomes available for leasing after the
expiration of the term of the initial lease of such portion of the First Offer
Space.

 

(b)  The Members further agree that the form of
Condominium Declaration and By-laws attached as Exhibit E to the Operating
Agreement shall be revised to incorporate the changes thereto which are
indicated on Exhibit C attached hereto.

 

16.           Pledged Accounts.  The FC Member
and the NYTC Member agree to cause the Company to comply with its obligations
under Section 7.57 of the Loan Agreements by no later than twelve (12)
months of the date of this Amendment. 
Similarly, FC Member shall comply with its individual obligations under
Section 7.57 of the Loan Agreements by no later than twelve (12) months of
the date of this Amendment.

 

17.           Operating Agreement Ratified.  In all other
respects, except as modified hereby, the Operating Agreement remains unmodified
and in full force and effect.

 

18.           Not Binding.  This Amendment
shall not be binding upon the parties hereto unless and until executed and
delivered by all parties hereto and the closing of the Construction Loan
occurs.

 

13

 

[the remainder of this page is intentionally blank]

 

14

 

IN
WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day
and date 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/ David L.
  Berliner

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name: David L. Berliner

  
	
   

  	
   

  	
   

  	
   

  	
  Title:  
  Sr. Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NYT REAL ESTATE COMPANY
  LLC, a New York

  limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ken Richieri

  	
   

  
	
   

  	
  Name: Ken Richieri

  
	
   

  	
  Title:   Manager

  
								

 

15

 

For purposes of determining the Guaranteed
Price under Section 5.1 of the Development Agreement, the Guaranteed Price
shall be reduced dollar for dollar for each dollar of cost savings, if any,
actually realized by the Company in the event NYTC Member exercises its right
pursuant to paragraph 6 hereof to continue construction of the Project and in
connection therewith eliminates any work previously included in the scope of
the Project.  FCE and Developer are
executing this Amendment to confirm their agreement to this provision and their
consent to the terms and conditions of this Amendment.

 

	
   

  	
  FOREST CITY RATNER
  COMPANY,

  a New York general partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BR FCRC, LLC, a New York

  limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Ratner Group, Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ David L.
  Berliner

  	
   

  
	
   

  	
   

  	
   

  	
  Name:  David L. Berliner

  
	
   

  	
   

  	
   

  	
  Title:    Sr. Vice President

  
	
   

  	
   

  
	
   

  	
  FOREST CITY ENTERPRISES,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James A.
  Ratner

  	
   

  
	
   

  	
   

  	
  Name: James A. Ratner

  
	
   

  	
   

  	
  Title: Executive Vice
  President

  
								

 

16

 

The undersigned are executing this Amendment
to confirm their consent to the terms and conditions of this Amendment.

 

 

	
   

  	
  INGREDUS SITE 8 SOUTH LLC,
  a Delaware

  limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Martin L. Standiford

  	
   

  
	
   

  	
   

  	
  Name: Martin L. Standiford

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  ING REAL ESTATE (B) B.V.,

  a Netherlands private limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  ING Real Estate B.V., its
  director

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ F.P. Trip & J.G.F. Eijkemans

  	
   

  
	
   

  	
   

  	
  Name: F.P. Trip & J.G.F. Eijkemans

  
	
   

  	
   

  	
  Title: director resp. proxyholder

  
						

 

17

 

EXHIBIT A

 

Chart re: Allocation
Methodology

 

[attached]

 

A-1

 

 

TIMES
TOWER

GMP
ALLOCATION METHODOLOGY

Updated
3/29/04

 

CM
instructions:

One of the below
codes will be assigned to every detailed line item of the GMP.

Colored drawings
produced by the owner will contain the allocation codes noted on this summary.

Show detailed
takeoffs, not summary data.

A separate
document defines whether the cost is adjusted based on A) the buyout of the
specific item or B) the ratio of the trade buyout to the trade budget Process
to calculating a deduct:

• Price out and allocate the higher cost option on the
estimate

• Price out the lower cost option - do not show on the
estimate

• Calculate the difference in the total costs and
allocate the difference on the estimate to the member entitled to the benefit

 

Code
structure:

100                                 Percentage
GSF allocation

200’s                       Other
allocation method for general work

300’s                       NYTC office
item

400’s                       FCRC office
item

500’s                       Times
Center item

600’s                       Retail item

 

	
  Code

  	
   

  	
  Allocation
  Code Description

  	
   

  	
  Allocation
  Methodology

  
	
  100

  	
   

  	
  Basic GSF Allocation

  	
   

  	
  Percentage interest for
  each of the 4 units provided by the Owner to be applied to each detailed line
  item of the GMP that does not have an alternate allocation methodology:

  NYT Office - 55.0903%

  FCRC Office - 41.6431%

  FCRC Retail - 1.4555%

  TC - 1.8111%

  
	
  200

  	
   

  	
  Elevators

  	
   

  	
  Service and tower
  elevators allocated based on buy. 
  Until then, allocate as follows:

  Service elevators 54.167% NYTC, 45.833% FCRC

  Tower passenger to users (NYTC and FCRC)

  F32 Freight @ east core GSF

  S31 Service@ east core 50% NYT, 50% GSF

  P29 Passenger @ east core 100% NYT

  C30 Times Center 100% Times Center

  Handicap lift @ lobby GSF

  
	
  201

  	
   

  	
  Elevator Pits

  	
   

  	
  CM to allocate cost of
  each elevator bank pit per colored drawing S100C1-A.  Costs include: excavation, concrete,
  Waterproofing, cast in place suspended pits.

  
	
  202

  	
   

  	
  Exterior Wall Enclosure
  - Assigned Contract

  	
   

  	
  Owner will provide the
  allocation of the Benson curtain wall. 
  See attached tab.

  
	
  203

  	
   

  	
  Exterior Wall Enclosure
  - storefront and east wall

  	
   

  	
  CM provides costs and
  Owner provides façade allocation percentage.

  Items include: storefront (street and 1st floor garden), east block party
  wall w/ EIFS (all floors), and loading dock O/H door.

  Included in $[*] allocation pending CM buy.

  Refer to code 505 for Times Center entrance.

  
	
  204

  	
   

  	
  Not used

  	
   

  	
   

  

 

A-2

 

	
  205

  	
   

  	
  Not used

  	
   

  	
   

  
	
  206

  	
   

  	
  Increased Structural
  Loading

  	
   

  	
  Cm to allocate costs in
  accordance with Kyle Krall’s e-mail dated 7/16/03, NYTC will be allocated
  1.25 pounds per sf for the increased load of the 12th floor data center (15
  tons) and the 15th floor conferecne room (7.5 tons).  CM to price at the rate for milled
  steel.  There is no special allocation
  for the high load on the office floor north and south bays since the spaces
  are approximately equal.

  
	
  207

  	
   

  	
  Integrity Enhancements

  	
   

  	
  [*]

  
	
  208

  	
   

  	
  Finishes Division 9 and
  waterproofing and wainscoting

  	
   

  	
  CM to allocate costs
  based on color coded plan to CM provided by Owner.

  Includes floor, wall and ceiling finishes per A0001, Division 9.

  Excludes Times Center.

  
	
  209

  	
   

  	
  Mirrors, Interior
  Doors, and Hardware (partial Division 8)

  	
   

  	
  CM to allocate costs
  based on color coded plan to CM provided by Owner.

  Includes bathroom mirrors.

  Excludes Times Center.

  
	
  210

  	
   

  	
  Specialties (partial
  Division 10)

  	
   

  	
  CM to allocate costs
  based on color coded plan to CM provided by Owner.

  Toilet and shower partitions, toilet accessories, lockers, and associated
  support steel, if applicable.

  Excludes Times Center

  
	
  211

  	
   

  	
  Millwork - (partial
  Division 6)

  	
   

  	
  CM to allocate costs
  based on color coded plan to CM provided by Owner.

  Includes counter tops.

  
	
  212

  	
   

  	
  Entrance Doors

  	
   

  	
  CM to allocate costs
  based on color coded plan to CM provided by Owner.

  Allocate entrance doors for non-common spaces to user (Times Center and
  Retail.)

  The main entrance doors are code 100.

  Included in $[*] allocation pending CM buy.

  
	
  213

  	
   

  	
  Interior Storefront
  (glass)

  	
   

  	
  CM to allocate costs
  based on color coded plan to CM provided by Owner.

  Break out cost of laminated glass and upgraded aluminum alloy and allocate
  based on GSF.

  1st floor Overhead Interior Fire Shutter and related steel support at Times
  Center split between Times Center and Common.

  Included in $[*] allocation pending CM buy.

   

  
	
  214

  	
   

  	
  Interior Partitions

  	
   

  	
  CM to allocate costs
  based on color coded plan to provided by Owner.

  Verify quantities with F&F.

  Includes drywall ceilings, partitions and soffits, glass, etc

  Excludes FCRC elevator shaft enclosure on NYTC floors.

  
	
  215

  	
   

  	
  Grounding Wire

  	
   

  	
  CM to allocate to
  beneficial user based on color coded plan: FCRC connection to backbone, NYTC
  sleeves for future ground and wire in basement (Times Center and mailroom).

  
	
  216

  	
   

  	
  Bond and insurance

  	
   

  	
  CM to allocate by trade
  based on percentage of trade cost allocated to NYTC or FCRC.

  
	
  217

  	
   

  	
  Raised Floor/ No Raised
  Floor

  	
   

  	
  Allocate to allocate
  costs based on owner direction:

  NYTC:  

  • raised slab at fire stair vestibule (A2101 P7, P13)

  •
  curbs at elevator lobby (A2101 J7) and curbs at telecom penetrations
  (A2101AP7,

  P13, A4)

  •
  grating and rails @ mechanical rooms (A2101B P10)

  •
  core service corridor duct work, lighting, etc

  • bathroom waterproofing on floors
  where there is no stack offset on the floor below

  FCRC:

  •
  machine room

  •
  core service corridor duct work, etc

  

 

A-3

 

	
  218

  	
   

  	
  Signage

  	
   

  	
  (Category added
  3/29/04.)  Signage referenced in
  Penatgram’s signage package dated 8/29/03 is allocated as follows:  Tenant identification signage (type 1.1,
  1.2, and 2.3) is allocated to the user and is associated with the signage
  budget.  Other wayfinding signage
  (type 2.1 and 2.2) is allocated GSF and is associated with the signage
  budget.  Other exterior signage (type
  1.3 and 1.4) is allocated GSF and is associated with the trade budget.  Room, door, and code signage (types 3 and
  4) are allocated GSF and are associated with the trade budget.

  
	
  300

  	
   

  	
  NYTC Communicating
  Stairs

  	
   

  	
  Allocated to NYTC.  CM to provide breakout pricing for core
  and shell portion of NYTC Communicating Stairs in Tower and Podium,
  including: steel stair stringers, pans, extension of standpipe from core to
  communication stairs @ 6 locations (2 floors) per color coded plan, and
  additional steel framing required for stair openings.

  
	
  301

  	
   

  	
  NYTC Podium Skylight

  	
   

  	
  Allocated to NYTC.  CM to provide breakout cost of skylight
  and associated intumescent paint. 
  Provide NYTC with a deduct for the full cost of the concrete, metal
  deck, spray fireproofing, and roofing displaced by the skylight.

  
	
  302

  	
   

  	
  Not used

  	
   

  	
   

  
	
  303

  	
   

  	
  NYTC Kitchen Exhaust
  etc.

  	
   

  	
  CM to breakout cost of
  ductwork, cal sill insulation

  Drywall included with interior partitions.

  
	
  304

  	
   

  	
  NYTC UPS

  	
   

  	
  CM to break out costs,
  including: empty conduit, pits, grate and waterproofing drip pan

  
	
  305

  	
   

  	
  NYTC Steam Humidifiers

  	
   

  	
  CM to break out costs,
  including: equipment and steam piping (incl branch piping from LP riser to
  humidifier)..

  
	
  306

  	
   

  	
  Cogen

  	
   

  	
  CM to break out cost
  based on colored drawings, including all costs to fit out the interior space:

  Electrical, HVAC, Plumbing, Fire Protection.

  Concrete & metal deck, handrails and steel stair, fuel containment curbs,
  masonry walls, metal panels, screening, ladder to roof, acoustic doors,
  aluminum cladding, fireproofing, drywall duct enclosures, interior
  partitions.

  Structural Steel

  Vibration and sound isolation

  Waterproofing

  SS Flue (Ornamental Metals)

  Enclosure

  Insulation - thermal & acoustic

  Provide a $100,000 credit for the building back-up generator costs not
  incurred (housing, waterproofing, etc) and a $57,460 credit for co-gen switchboards
  2 and 3.

  Also, allocate a share of total general conditions and fee based on the
  percenatge of total GCs to total trade costs.

  
	
  307

  	
   

  	
  NYTC Air cooled Chiller

  	
   

  	
  CM to allocate costs
  based on color coded plan to CM provided by Owner.

  
	
  308

  	
   

  	
  NYT Telecom

  	
   

  	
  CM to break out costs
  based on colored drawings, including: 2 telecom conduits (1 riser) form 12 to
  51, 4 telecom conduit from the 12th floor to the basement pull box at the
  west garden wall and the two conduit from the pull box to the NYT mailroom.  Also, break out the cost of the telecom
  sleeves in the east and west risers going through the FCRC floors to 51st
  floor.  (Note - allocate the cost of
  the remaining telecom sleeves, conduit, main carrier entrance room ladder
  rack and slab openings GSF using Code 100.)

  
	
  309

  	
   

  	
  NYTC Kitchen Gas

  	
   

  	
  CM to break out costs
  based on color coded plan, including gas piping and gas meters

  
	
  310

  	
   

  	
  NYTC Kitchen Power

  	
   

  	
  CM to break out costs
  based on color coded plan for dedicated kitchen power (basement breaker at
  switchboard, riser w/ line, and disconnect on floor)

  
	
  311

  	
   

  	
  NYTC telecom chilled
  water

  	
   

  	
  CM to break out costs
  based on color coded plan for the telecom closet chilled water riser
  (CHS/R-4),

  
	
  312

  	
   

  	
  NYTC filtered water
  system

  	
   

  	
  CM to break out cost
  based on colored drawings for central filtered water system supply and drains

  
	
  313

  	
   

  	
  Not used

  	
   

  	
   

  
	
  314

  	
   

  	
  NYTC Tennant MEP

  	
   

  	
  CM to allocate cost
  based on color coded drawing for tenant MEPS fitout not captured in other
  codes, such as drains, vents, conduit, etc.

  
	
  315

  	
   

  	
  NYTC Intumescent Paint

  	
   

  	
  CM to allocate cost of
  intumescent paint, net of spray fireproofing, for newsroom skylight, Times
  cafeteria bridge, and Times Center bridge.

  

 

A-4

 

	
  316

  	
   

  	
  NYTC Podium AHU

  	
   

  	
  CM to allocate the
  incremental cost of the podium AHU to NYTC based on the AMEC’s pricing study
  of the on floor unit alternative documented by F&K; and allocate a like
  amount (in total) as a credit to each of the four units

  
	
  317

  	
   

  	
  NYTC Podium Window
  Washing

  	
   

  	
  CM to allocate the
  incremental cost to extend use of the of the podium garden window washing rig
  to the NYTC newsroom skylight.  The
  design called for in the GMP drawings will be allocated using the GSF rate.

  
	
  401

  	
   

  	
  FCRC Temporary Heat on
  Office Floors

  	
   

  	
  CM to breakout cost
  based on color coded drawing for FPUs, starters, power, piping, controls, fan
  powered boxes, etc.

  
	
  402

  	
   

  	
  Fuel oil facility

  	
   

  	
  CM to allocate tank,
  infill piping, vent piping, relief piping, waterproofing, 40% to common and
  60% to FCRC.

  
	
  403

  	
   

  	
  FCRC elevator shafts on
  NYTC floors

  	
   

  	
  CM to allocate costs
  based on color coded plan to CM provided by Owner.

  
	
  404

  	
   

  	
  FCRC fuel & gas
  riser

  	
   

  	
  CM to break allocate
  cost per color coded drawings for fuel and gas riser.

  
	
  405

  	
   

  	
  FCRC Sprinkler

  	
   

  	
  CM to allocate cost of
  heads and piping in retail and basement storage areas per color coded chart.

  
	
  406

  	
   

  	
  FCRC telecom

  	
   

  	
  CM to allocate
  firestopping at telecom slots.

  
	
  501

  	
   

  	
  Times Center MEP Owner
  Fitout

  	
   

  	
  CM to break out costs
  based on color coded drawing, including: 
  AHUs 6,7, & 8, SF, RF, Duct, controls, piping (including cost of
  under slab), and starters.

  
	
  502

  	
   

  	
  Times Center Structural
  Steel Provisions

  	
   

  	
  CM to allocate lump sum
  for additional cost due to long spans and vibration isolation.

  
	
  503

  	
   

  	
  Times Center and
  Mailroom Toilets

  	
   

  	
  CM to break out all
  costs including plumbing and finishes

  
	
  504

  	
   

  	
  Times Center Lower
  Function Room Elevation

  	
   

  	
  CM to allocate cost of
  the depressed slab for the basement of the Times Center and the corridor
  railing at the basement corridor ramp adjacent to the Times Center.

  
	
  505

  	
   

  	
  Times Center canopy

  	
   

  	
  CM to allocate cost of
  the Times Center canopy to NYT with a flat credit of $34,882 provided by FCRC

  

 

For
clarity, the following items will be allocated using the GSF allocation (code
100).

 

•
Steel supports for retail signage

•
Bird protection

•
Canopies and awnings, except Times Center canpoy

•
Turnstiles, lobby reception desks, lobby elevator bank partition.

•
Equipment to heat water using steam (basement for NYT and 28th floor for FCRC)

•
Empty electrical conduit and chilled water to retail and Times Center

•
General conditions and fees

•
Allocate the trade insurance deduct, sales tax deduct, and bond premium based
on the relative trade cost for each unit. 
For example, if a particular trade’s insurance deduct is $1000 and FCRC
Office unit’s share of costs for that trade is 45%, then FCRC would be
allocated $450 of the deduct.  The cost
of the OCIP insurance premium will be allocated based on each unit’s share of
total trade costs and GCs.

 

Other

 

Co-gen and times center
mez not included in square footage calculation

 

A-5

 

NYT New Headquarters Building

Area Calculation per attached F& F gsf worksheet
“4700-65gross-r2”

Updated 2/3/04

 

	
  100% CD
  through bulletin 4

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Recon to
  F&F

  	
   

  
	
   

  	
   

  	
  Unit

  	
   

  	
  NYT

  	
   

  	
  FCRC

  	
   

  	
  NYT

  	
   

  	
  FCRC

  	
   

  	
  TC

  	
   

  	
  Total

  	
   

  
	
   

  	
   

  	
  Total

  	
   

  	
  Member

  	
   

  	
  Member

  	
   

  	
  Office

  	
   

  	
  TC

  	
   

  	
  Office

  	
   

  	
  Retail

  	
   

  	
  Mez

  	
   

  	
  per
  F&F

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Unit space (excl
  TC Mez & east bul

  	
   

  	
  1,433,563

  	
   

  	
  827,393

  	
   

  	
  606,170

  	
   

  	
  801,921

  	
   

  	
  25,472

  	
   

  	
  585,699

  	
   

  	
  20,471

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GSF%
  (Pro Rata Share)

  	
   

  	
  100.0000

  	
  %

  	
  57.7158

  	
  %

  	
  42.2842

  	
  %

  	
  55.9390

  	
  %

  	
  1.7768

  	
  %

  	
  40.8562

  	
  %

  	
  1.4280

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Add common,
  rooftop & east buldk

  	
   

  	
  105,603

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total building
  GSF

  	
   

  	
  1,539,166

  	
   

  	
  888,343

  	
   

  	
  650,823

  	
   

  	
  860,994

  	
   

  	
  27,348

  	
   

  	
  628,844

  	
   

  	
  21,979

  	
   

  	
  596

  	
   

  	
  1,539,762

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Deduct blind
  shaft:

  	
   

  	
  27,092

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  27,092

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Trade allocation
  GSF

  	
   

  	
  1,406,471

  	
   

  	
  800,301

  	
   

  	
  606,170

  	
   

  	
  774,829

  	
   

  	
  25,472

  	
   

  	
  585,699

  	
   

  	
  20,471

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Trade%

  	
   

  	
  100.0000

  	
  %

  	
  56.9014

  	
  %

  	
  43.0986

  	
  %

  	
  55.0903

  	
  %

  	
  1.8111

  	
  %

  	
  41.6431

  	
  %

  	
  1.4555

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Note — FCRC office includes rounding effect

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ESDC GSF (incl
  TC Mez)

  	
   

  	
  1,386,768

  	
   

  	
  796,175

  	
   

  	
  590,593

  	
   

  	
  782,355

  	
   

  	
  13,820

  	
   

  	
  571,006

  	
   

  	
  19,587

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ESDC%

  	
   

  	
  100.0000

  	
  %

  	
  57.4123

  	
  %

  	
  42.5877

  	
  %

  	
  56.4157

  	
  %

  	
  0.9966

  	
  %

  	
  41.1753

  	
  %

  	
  1.4124

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Add common &
  mechanical

  	
   

  	
  43,018

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GSF vs ESDC cap
  of 1,430,000

  	
   

  	
  1,429,786

  	
   

  	
  820,873

  	
   

  	
  608,913

  	
   

  	
  806,624

  	
   

  	
  14,249

  	
   

  	
  588,719

  	
   

  	
  20,195

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Land Share (per
  above ESDC%)

  	
   

  	
  100.0000

  	
  %

  	
  57.4123

  	
  %

  	
  42.5877

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Interpolated NYT land funding share (Operating
  Agreement Exhibit K):

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NYT Share Between

  	
   

  	
  Funding Value

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit K Low
  value

  	
   

  	
  57.29

  	
  %

  	
  43.58

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit K high
  value

  	
   

  	
  57.64

  	
  %

  	
  44.20

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Land
  Funding Share

  	
   

  	
  100.0000

  	
  %

  	
  43.7966

  	
  %

  	
  56.2034

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-6

 

Curtainwall
Allocation Calculation

9/8/2003

 

	
  Glass area calc:

  	
   

  	
  Total

  	
   

  	
  NYTC

  	
   

  	
  FCRC

  	
   

  	
  TC

  	
   

  	
  Retail

  	
   

  	
   

  	
   

  
	
  Level 2 - Tower

  	
   

  	
  8,508

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Podium

  	
   

  	
  10,055

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Garden

  	
   

  	
  4,331

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level 3 - Tower

  	
   

  	
  8,508

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Podium

  	
   

  	
  10,055

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Garden

  	
   

  	
  4,331

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level 4 - Tower

  	
   

  	
  9,124

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Podium

  	
   

  	
  9,052

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Garden

  	
   

  	
  3,360

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level 5

  	
   

  	
  8,809

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level 6

  	
   

  	
  10,334

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level 7 thru 27

  	
   

  	
  202,713

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total 2-27

  	
   

  	
  289,180

  	
   

  	
  289,180

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level 28

  	
   

  	
  19,306

  	
   

  	
  10,387

  	
   

  	
  8,578

  	
   

  	
  191

  	
   

  	
  150

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level 29 thru 50

  	
   

  	
  212,366

  	
   

  	
   

  	
   

  	
  212,366

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level 51

  	
   

  	
  19,306

  	
   

  	
  9,862

  	
   

  	
  9,066

  	
   

  	
  212

  	
   

  	
  166

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rooftop Screens

  	
   

  	
  39,290

  	
   

  	
  21,636

  	
   

  	
  16,355

  	
   

  	
  728

  	
   

  	
  572

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  East Masonry Partition - Floors 2 thru 4

  	
   

  	
  8,145

  	
   

  	
  8,145

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  180
  LF X 45.25 Feet High

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  587,593

  	
   

  	
  339,210

  	
   

  	
  246,365

  	
   

  	
  1,131

  	
   

  	
  888

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Percent of Total

  	
   

  	
   

  	
   

  	
  0.57729

  	
   

  	
  0.41928

  	
   

  	
  0.00192

  	
   

  	
  0.00151

  	
   

  	
   

  	
   

  

 

	
  Cost allocation:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Curtainwall

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Curtainwall Change at East Wall

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Low Iron Glass Alternate

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Subtotal Cost

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Laminated Glass Upgrade

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2-story Cafeteria Upgrade

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aluminum Clip Cover

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  FCRC

  	
   

  	
  TC

  	
   

  	
  Retail

  	
   

  	
  Total

  	
   

  
	
  Credit for Drywall Allowance at Garden

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  
	
  Total Cost

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Unit Allocation Percentages:

  	
   

  	
   

  	
   

  	
  57.7250

  	
  %

  	
  41.9369

  	
  %

  	
  0.1894

  	
  %

  	
  0.1487

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Member allocation percentages:

  	
   

  	
   

  	
   

  	
  57.9144

  	
  %

  	
  42.0856

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Allocate
floors ground, 28, and 51 based F&F GSF Spreadsheet Dated 12/16/03 file
4700-65gross-r1

 

	
   

  	
   

  	
  GSF

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NYTC
  (net of blind shaft)

  	
   

  	
  774,829

  	
   

  	
  55.0670

  	
  %

  	
  56.9196

  	
  %

  
	
  FCRC

  	
   

  	
  585,699

  	
   

  	
  41.6255

  	
  %

  	
  43.0804

  	
  %

  
	
  TC

  	
   

  	
  26,068

  	
   

  	
  1.8526

  	
  %

  	
   

  	
   

  
	
  Retail

  	
   

  	
  20,471

  	
   

  	
  1.4549

  	
  %

  	
   

  	
   

  
	
   

  	
   

  	
  1,407,067

  	
   

  	
  100.0000

  	
  %

  	
  100.0000

  	
  %

  

 

	
   

  	
   

  	
  NYTC

  	
   

  	
  FCRC

  	
   

  	
  TC

  	
   

  	
  Retail

  	
   

  	
  Common

  	
   

  
	
  Level 28

  	
   

  	
  6,268

  	
   

  	
  5,705

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  7,562

  	
   

  	
  5,716

  	
   

  	
  254

  	
   

  	
  200

  	
   

  	
  13,732

  	
   

  
	
  Total

  	
   

  	
  13,830

  	
   

  	
  11,421

  	
   

  	
  254

  	
   

  	
  200

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  0.5380

  	
   

  	
  0.4443

  	
   

  	
  0.0099

  	
   

  	
  0.0078

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level 51

  	
   

  	
  4,750

  	
   

  	
  5,736

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8,381

  	
   

  	
  6,335

  	
   

  	
  282

  	
   

  	
  221

  	
   

  	
  15,219

  	
   

  
	
  Total

  	
   

  	
  13,131

  	
   

  	
  12,071

  	
   

  	
  282

  	
   

  	
  221

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  0.5108

  	
   

  	
  0.4696

  	
   

  	
  0.0110

  	
   

  	
  0.0086

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ground Floor

  	
   

  	
  371

  	
   

  	
  661

  	
   

  	
  12960

  	
   

  	
  19587

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  15,480

  	
   

  	
  11,702

  	
   

  	
  521

  	
   

  	
  409

  	
   

  	
  28,112

  	
   

  
	
  Total

  	
   

  	
  15,851

  	
   

  	
  12,363

  	
   

  	
  13,481

  	
   

  	
  19,996

  	
   

  	
  61691

  	
   

  
	
   

  	
   

  	
  0.2569

  	
   

  	
  0.2004

  	
   

  	
  0.2185

  	
   

  	
  0.3241

  	
   

  	
   

  	
   

  

 

A-7

 

Life
Safety Upgrade Allocation

9/24/2003

 

[*]

 

 

A-8

 

EXHIBIT B

 

Loan Cost Allocation
between FC and NYTC

 

Estimated Shared Loan Fees and
Expenses

 

	
  FC Lion’s Pro
  Rata Share

  	
   

  	
  42.2842

  	
  %

  
	
  NYTC Pro Rata
  Share

  	
   

  	
  57.7158

  	
  %

  
	
   

  	
   

  	
  100.0000

  	
  %

  

 

	
  Estimated Fee

  	
   

  	
  Shared
  Costs

  	
   

  	
  NYTC

  Allocation%

  	
   

  	
  NYTC
  Shared

  Amount

  	
   

  	
  Paid

  	
   

  
	
  Appraisal

  	
   

  	
  15,000

  	
   

  	
  57.7158

  	
  %

  	
  8,657

  	
   

  	
  At closing

  	
   

  
	
  Environmental

  	
   

  	
  15,000

  	
   

  	
  57.7158

  	
  %

  	
  8,657

  	
   

  	
  At closing

  	
   

  
	
  Bank Engineer
  Fee

  	
   

  	
  184,000

  	
   

  	
  57.7158

  	
  %

  	
  106,197

  	
   

  	
  $40K (estimated) at closing with the balance paid
  monthly over the construction period

  	
   

  
	
  Insurance

  	
   

  	
  10,000

  	
   

  	
  57.7158

  	
  %

  	
  5,772

  	
   

  	
  At closing

  	
   

  
	
  Admin Fee

  	
   

  	
  525,000

  	
   

  	
  57.7158

  	
  %

  	
  303,008

  	
   

  	
  Monthly over the loan term

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $

  	
   749,000

  	
   

  	
   

  	
   

  	
  $

  	
  432,291

  	
   

  	
   

  	
   

  
												

 

 

EXHIBIT C

 

Changes to Form of
Condominium Declaration and By-laws.

 

 

 

DECLARATION
OF LEASEHOLD CONDOMINIUM

 

ESTABLISHING
A PLAN OF LEASEHOLD CONDOMINIUM

OWNERSHIP OF PREMISES LOCATED ON THE EASTERLY SIDE OF

EIGHTH AVENUE BETWEEN 40th & 41st STREETS,

NEW YORK, NEW YORK

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Condominium:

  	
   

  	
  The New York Times Building
  Condominium

  
	
   

  	
   

  	
   

  
	
  Declarant:

  	
   

  	
  The New York Times Building
  LLC

  having an address

  c/o The New York Times Company

  229 West 43rd Street

  New York, New York 10036

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
           ,     

  
	
   

  	
   

  	
   

  
	
  Block:

  	
   

  	
  1012

  
	
   

  	
   

  	
   

  
	
  Lots:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Record and Return to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  James J. Kirk, Esq.

  Kelley Drye & Warren LLP

  101 Park Avenue

  New York, New York 10178

  
	
   

  	
   

  
	
   

  	
  * MARKED CHANGES

  
				

 

 

34.  “Default Period” shall have the meaning ascribed to such
term in Section 6 of Article XX hereof.

 

35.  “Depositary” shall mean any entity, agreeing for the
benefit of the Unit Owners, to perform the obligations of depositary hereunder
on substantially the terms of the Depositary Agreement, which (A) (1) is a
Registered Mortgagee (provided that such Registered Mortgagee is
designated as the Depositary and would qualify as an Lending Institution, but
is other than a savings bank or savings and loan association), (2) if not a
Registered Mortgagee, is a commercial bank or trust company qualifying as an
Lending Institution designated by the Registered Mortgagee most senior in lien,
or (3) if not the Registered Mortgagee or designated by the Registered
Mortgagee pursuant to clause (2) above, is a commercial bank or trust company
qualifying as an Lending Institution designated by the Board of Managers, (B)
has an office in the City of New York, and (C) has a net worth of not less than
One Hundred Million Dollars ($100,000,000) and net assets of not less than Two
Hundred Fifty Million Dollars ($250,000,000) (as such sums shall be adjusted by
the CPI Adjustment from the date hereof throughout the period during which it
acts as the Depositary.  If, at any
time, no Lending Institution is so acting, then the Board of Managers shall
designate as the Depositary an unaffiliated third party that is ordinarily
engaged in the business of acting as a depositary.  The Unit Owners agree that *GMAC Commercial
Mortgage Corporation*
shall be the initial Depositary.

 

36.  “Depositary Agreement” shall have the meaning ascribed to
such term in Section 2 of Article VII of the By-Laws.

 

37.  “DUO” shall have the meaning ascribed to such term in the
Unit Leases.

 

38.  “Excess Site Acquisition Costs” shall have the meaning
ascribed to such term in the Site 8 South Land Acquisition and Development
Agreement dated as of December      , 2001 by and
among New York State Urban Development Corporation d/b/a Empire State
Development Corporation, Ground Lessor and Declarant.

 

39.  “Event of Default” shall have the meaning ascribed to such
term in Section 1 of Article XXI hereof.

 

40.  “Fair Market Rent” is defined in Section 8 of Article XX
hereof.

 

41.  “Fair Market Value” is defined in Section 8 of
Article XX hereof.

 

42.  “Family Member” 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 thereof (including, in any such
case, relationships established by adoption).

 

43.  “FC Areas” shall mean those portions of the Premises
designated as “FC —Tax Lot
Nos.       ” on the Plans (exclusive of any
Common Elements or FC Limited Common Elements contained therein).

 

44.  “FC Board of Managers” means the board of managers
representing the FC Unit Owners, collectively, and elected in accordance with
the By-Laws.

 

6

 

was recorded in the Register’s Office on
                
, 200   at Reel        , Page
           .

 

62.  “Ground Lessee” shall mean the tenant under the Ground
Lease from time to time.

 

63.  “Ground Lessor” shall mean the landlord under the Ground
Lease from time to time.

 

64.  “Initial Occupancy Tenant” shall have the meaning ascribed
to such term in Section 5(d)  of
Article XX hereof.

 

65.  “Insurance Requirements” shall mean all requirements of
any insurance policy required to be carried pursuant to the By-Laws or any Unit
Lease and covering or applicable to all or any part of the Premises or the use
thereof, all requirements of the issuer of any such policy and all orders,
rules, regulations and other requirements of the New York Board of Fire
Underwriters or any other body exercising the same or similar functions and
having jurisdiction of all or any portion of the Premises.

 

66.  “Interest Rate” shall mean a rate per annum equal to the
lesser of (i) three (3) percentage points above the rate publicly announced
from time to time by Citibank, N.A. (or its successor) in New York, New York as
its “prime rate” or “base rate” or (ii) the maximum rate permitted by
applicable law with respect to the applicable amount payable hereunder.

 

67.  “Interim NYTC Sublease” shall have the meaning ascribed to
such term in Section 6 of Article XX hereof.

 

68.  “Interim Sublease Option” shall have the meaning ascribed
to such term in Section 6 of Article XX hereof.

 

69.  “Land” shall have the meaning ascribed to such term in Article II
hereof.

 

70.  “Laws” (or, if used individually, “Law”) shall mean
all laws, statutes and ordinances (including building codes and zoning
ordinances) and the orders, rules, regulations, directives and requirements of
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 (collectively, “Governmental Authorities”), whether in force
as of the date hereof or hereafter, which are or become, or purport to be,
applicable to the Premises or any part thereof or the sidewalks, curbs or areas
adjacent thereto.

 

71. *TO BE CHANGED TO
CONFORM TO GROUND LEASE DEFINITION, AS MODIFIED BY THE TRI-PARTY AGREEMENT* “Lending
Institution” shall mean (A) a savings bank, savings and loan association,
commercial bank or trust company (whether acting individually or in a fiduciary
capacity), (B) an insurance company, (C) a real estate investment trust, a
trustee or issuer of collateralized mortgage obligations, a loan conduit, or
other similar investment entity which is listed on the New York Stock Exchange,
American Stock Exchange or other regional exchange (or their respective
successors), (D) a federal, state, municipal or secular employee’s welfare,
benefit, pension or retirement fund, a religious, educational or eleemosynary
institution, any

 

9

 

160.         “Trigger Date” shall have the meaning ascribed to such term in Section 4(a)
of Article XX.

 

161.         “12-Month Period” shall have the meaning ascribed to such term in
Section 3(a) of Article XX hereof.

 

162.         “Unit” shall mean each FC Individual Unit, each NYTC Individual
Unit, the Retail Unit and the SPU Unit.

 

163.         “Unit Leases” shall mean, collectively, the FC Unit Lease, the
NYTC Unit Lease and any other subleases hereafter entered into between Ground
Lessee and any subtenant (including, without limitation, any Recognized
Mortgagee), as each may be amended, supplemented and/or restated from time to
time as permitted hereunder.  The term “Unit
Lease”, when used in the singular, shall refer to either the FC Unit Lease,
the NYTC Unit Lease or any other such sublease (as each may be amended,
supplemented and/or restated from time to time as permitted hereunder), as
appropriate.

 

164.         “Unit Owner” shall mean, with respect to any Unit, (a) for so
long as a Unit Lease for such Unit is in effect, the tenant (from time to time)
under such Unit Lease, and (b) from and after the termination of a Unit Lease
by Ground Lessee or otherwise, until a Unit Lease is again in effect for such
Unit, the Ground Lessee.  All references
to a Unit Owner shall be deemed to include such Unit Owner’s successors and
permitted assigns.

 

165.         “Unit Owner Decision(s)” shall have the meaning ascribed to such
term in Section 8 of Article II of the By-Laws.

 

166.         “Unit Owner Expense(s)” shall mean, as to each Unit Owner:

 

(i)            *subject
to clause (ii) of this definition* an amount  equal to such
Unit Owner’s share (based upon its Common Interest) of all costs and expenses
(including taxes) paid or incurred by or on behalf of the Board of Managers in
connection with or arising from the operation and management of the Building
(including, without limitation, any such costs and expenses assessed as Special
Assessments), but excluding any amounts paid or incurred by or on behalf of the
Board of Managers to cure any Event of Default by any Unit Owner, which amounts
shall be allocated solely to the defaulting Unit Owner;

 

(ii)           for each category of expense attributable to the Building as set forth
on Exhibit D attached hereto (including, without limitation, any such
expense assessed as a Special Assessment), the respective percentages set forth
on said Exhibit D;

 

(iii)          an amount equal to such Unit Owner’s share (based upon its Common
Interest) of any reserves established by the Unit Owners in accordance with the
provisions of Section 8 of Article II of the By-Laws;
and

 

(iv)          any FC Collective Unit Expenses or NYTC Collective Unit Expenses, as the
case may be, payable by such Unit Owner.

 

167.         “Work” shall have the meaning ascribed to such term in Article X
hereof.

 

18

 

if the FC Board of Managers were the Board of
Managers, the FC Unit Owners were the Unit Owners and the FC Limited Common
Elements were the Common Elements.

 

Section 6.  Failure to Deliver a Statement Not
Prejudicial.  The failure to render
any statement hereunder with respect to any period shall not prejudice the
right of the Board of Managers, NYTC Board of Managers or FC Board of Managers,
as the case may be, to thereafter render a statement with respect thereto or
the right of any Unit Owner to require and be furnished with same.

 

Section 7.  Books and Records.  (a) Upon five (5) business days’ written
notice by any Unit Owner, Ground Lessee or any Registered Mortgagee to the
Board of Managers, such Unit Owner, Ground Lessee or Registered Mortgagee (or
any agents acting on behalf of such Unit Owner, Ground Lessee or Registered
Mortgagee) may inspect the applicable books and records of the Board of
Managers in order to verify such Unit Owner’s Unit Owner Expenses.  Such notice shall specifically designate the
year(s) for which the Unit Owner, Ground Lessee or Registered Mortgagee intends
to inspect applicable books and records, which year(s) shall be limited to the
three (3) full calendar years immediately preceding the date of such inspection
and any then elapsed portion of the then current calendar year.

 

(b)  Each inspection shall be at the office of the Board of Managers
or at the office of the Board of Manager’s managing agent, if any, and shall be
made during normal business hours.  All
costs of such inspection shall be borne by the party requesting the
inspection.  Any Unit Owner, Ground
Lessee or Registered Mortgagee making any inspection hereunder shall provide
the Board of Managers with a copy of any written report on the results of such
inspection within fifteen (15) days of the preparation thereof.  Each Unit Owner shall hold confidential all
non-public information, reports or statements obtained pursuant to such
inspection, provided however, that such Unit Owner may disclose such
information (i) to its Affiliate, (ii) pursuant to the order of any court of
competent jurisdiction or administrative agency, (iii) which had been publicly
disclosed other than as a result of a disclosure by such Unit Owner, (iv) in
connection with any litigation, (v) to the extent necessary in connection with
the exercise of any remedy hereunder or under any other document relating to
the Building, (vi) to such Unit Owner’s legal counsel, accountants and
independent auditors and (vii) to any *actual
or proposed* Registered
Mortgagee or proposed subtenant or assignee of a Unit Owner.

 

(c)  The NYTC Unit Owners, Ground Lessee and any Registered Mortgagee
of the NYTC Unit Owners shall have the same right to inspect the books and
records kept by the NYTC Board of Managers, as provided for inspection of the
books and records kept by the Board of Managers in subsections (a) and (b)
above.

 

(d)  The FC Unit Owners, Ground Lessee and any Registered Mortgagee of
an FC Unit Owner shall have the same right to inspect the books and records
kept by the FC Board of Managers, as provided for inspection of the books and
records kept by the Board of Managers in subsections (a) and (b) above.

 

Section 8.  Estoppel Certificates Delivered by Board
of Managers.  Within fifteen (15)
days of receipt of a written request therefor (whether from a Unit Owner or its
prospective assignee or its Registered Mortgagee or a prospective Mortgagee or
from Ground Lessee), the

 

28

 

(b)  Approval Rights of Registered Mortgagees.  Each Unit Owner shall submit a draft of any
supplement, amendment or modification of this Declaration to its Registered
Mortgagee(s) (if any) and such Registered Mortgagee(s) shall have the right to
approve same. [text deleted: (SUCH APPROVAL NOT TO BE UNREASONABLY
WITHHELD)] Any supplement, amendment or modification which is entered into
without notice to (and approval by) each Unit Owner’s Registered Mortgagees
shall be void ab  initio. 
Any approval or disapproval of an amendment hereto shall be given by
each Registered Mortgagee within ten (10) Business Days of each such Registered
Mortgagee’s receipt of a written request therefor, and each such Registered
Mortgagee’s failure to timely respond to any such request (i.e., within
such ten (10) Business Day period) shall, subject to the provisions of Section 4
of Article XXIII hereof, constitute (and be deemed to
constitute) each such Registered Mortgagee’s approval of the proposed
amendment.

 

(c)  Recording of Amendments. 
No amendment hereof shall be effective until recorded in the Register’s
Office.

 

Section 2.  Execution and Delivery of Amendments.  Any amendment to this Declaration approved
in accordance with Section 1 of this Article XVII shall be executed
on behalf of each Unit Owner by its general partner, managing member, officer
or other authorized person of such Unit Owner.

 

ARTICLE XVIII

 

TERMINATION
OF CONDOMINIUM; PURCHASE OPTION UNDER GROUND LEASE

 

Section 1.  Withdrawal by Unit Owners.  The Condominium shall continue until such
time as withdrawal of the Property from the provisions of the Condominium Act
and termination of this Condominium is authorized by a unanimous vote of all of
the Unit Owners and their Registered Mortgagees and approved in writing by the
Ground Lessee if and to the extent such approval is required under the Unit
Leases.  In the event of any such
withdrawal and termination, the Unit Owners shall (i) (a) enter into (and
record in the Register’s Office) a reciprocal easement agreement or (b) create
a “common law condominium’’ modeled upon (and containing substantially the same
provisions as) this Declaration and the By-Laws (and record the same in the
Register’s Office), in either case providing for substantially the same
administration of and level of maintenance and repair in respect of the “common
areas”, the “NYTC limited areas” and the “FC limited areas” of the Premises as
are provided in the Condominium created herein, and (ii) amend the Unit Leases
so that the descriptions of the premises demised thereunder no longer refer to
condominium Units (and appurtenant interests in Common Elements) but to the
spaces and area demised thereunder (and appurtenant interests in the “common
areas”, the “NYTC limited areas” and the “FC limited areas” of the Premises, as
described in the reciprocal easement agreement (or condominium, as the case may
be) referred to in the preceding subclause (i)).

 

Section 2.  Purchase Option Under Unit Leases.  Except as otherwise set forth in this
Section 2, the decision to exercise the purchase option set forth in
Article V of the Unit Leases shall be made solely by NYTC Unit Owner, and
if NYTC Unit Owner exercises the purchase option set forth in Article V of
the NYTC Unit Lease, then each FC Unit Owner and

 

45

 

the Retail Unit Owner shall simultaneously exercise the purchase option
set forth in Article V of its respective Unit Lease, and thereupon each
Unit Owner shall take all actions required under its respective Unit Lease in
connection with the exercise of such purchase option.  If any FC Unit Owner or the Retail Unit Owner, by exercising such
purchase option, will forfeit its right to reimbursement for Excess Site
Acquisition Costs, then the NYTC Unit Owner shall, on the exercise of such
purchase option, pay to each such FC Unit Owner and the Retail Unit Owner an
amount equal to such FC Unit Owner’s and Retail Unit Owner’s forfeited Excess
Site Acquisition Costs.  Notwithstanding
the foregoing, if NYTC Unit Owner has not exercised the purchase option set
forth in Article V of the NYTC Unit Lease on or before the date which is
five (5) years prior to the date which is 99 years after the Commencement Date
(as defined in the Ground Lease), then any FC Unit Owner or the Retail Unit
Owner or both shall have the right to exercise the purchase option set forth in
Article V of its respective Unit Lease and, in such event, NYTC Unit Owner
and the remaining Unit Owners simultaneously shall exercise the corresponding
purchase options under their respective Unit Leases, and thereupon such Unit
Owners shall take all actions necessary or required under its respective Unit
Lease in connection with the exercise of such purchase option.  In the event of the exercise of the
aforesaid purchase options, the Unit Owners shall contemporaneously therewith
enter into (and record in the Register’s Office) an amendment to this
Declaration to convert the same to a fee condominium on substantially the
terms, covenants and conditions herein contained.

 

ARTICLE XIX

 

COVENANT OF FURTHER
ASSURANCES

 

Any Person who is subject to this Declaration
(including any Unit Owner or any Person claiming by, through or under any Unit
Owner, the Declarant, the Board of Managers, the NYTC Board of Managers, the FC
Board of Managers and any Manager or officer) (the “Subject Party”)
shall execute, acknowledge and deliver to any such other Person such documents
and take such other action as such other Person may reasonably request in order
to effectuate the provisions of this Declaration or the By-Laws and the
realization of the benefits intended to be conferred thereby, provided,
however, that such document or action does not decrease the rights or increase
the obligations of the Subject Party, any Unit Owner under this Declaration or
the By-Laws.  Except as otherwise
provided in this Declaration or the By-Laws, all expense and liability thus
incurred shall be borne by the requesting Person.  If any Subject Party fails or refuses within five (5) days after
request therefor to execute, acknowledge or deliver any such document or to
take any such action, then the Board of Managers is hereby authorized to act as
attorney-in-fact for such Subject Party, coupled with an interest and granted
for a valuable consideration, to execute, acknowledge and deliver such document
and to take such action in the name of such Subject Party.

 

*ADD PROVISION REQUIRING AMENDMENTS TO DECLARATION
WHICH ARE REASONABLY REQUESTED BY A RECOGNIZED MORTGAGEE, SO LONG AS SUCH
AMENDMENTS DO NOT INCREASE ANY OBLIGATIONS (EXCEPT TO A DE MINIMUS EXTENT) AND
DO NOT DECREASE ANY RIGHTS AND BENEFITS (EXCEPT TO A DE MINIMUS EXTENT)*

 

46

 

ARTICLE XX

 

SALES, SUBLEASES AND
MORTGAGES

 

Section 1. 
Unit Owners’ Rights to Sell, Sublease or Mortgage Units.  Subject to the provisions of this
Declaration, the By-Laws and the applicable Unit Lease, any Unit Owner may,
without prior consent of any Person, mortgage or sublease its leasehold
interest in, or Sell, its Unit or transfer any interests in such Unit Owner, so
long as (a) such Sale, sublease or mortgage of a Unit is permitted by, and
complies with, the applicable provisions of its Unit Lease, and (b) the
proposed subtenant or purchaser of a Unit (i) shall not be a prospective subtenant
or assignee with whom another Unit Owner has negotiated a term sheet for a
sublease or assignment within the prior three (3) months and is not then a
subtenant of such Unit Owner, (ii) shall not be an entity described in item (1)
on Exhibit I attached hereto (“NYTC Competing User”) as to the
Retail Unit and any FC Individual Unit and (iii) shall not be permitted to use
the Unit for the uses described in items (2)-(18) on Exhibit I attached
hereto (“Prohibited Uses”).  The
restrictions set forth in clause (b)(ii) of this Section 1
regarding the Sale or subleasing of the Retail Unit and the FC Individual Units
to a NYTC Competing User shall not apply (x) unless NYTC occupies Units within
the Building, the Common Interest attributable to which, in the aggregate,
constitutes at least twenty percent (20%) and (y) as to any entity which is an
NYTC Competing User at any time from and after the date the SPU Unit and/or any
NYTC Individual Unit *or any portion thereof* is sold
or subleased to such entity (but shall continue to apply to any other entity
which would constitute an NYTC Competing User).  Each Unit Owner shall notify the Board of Managers of any
proposed Sale, sublease or mortgage of a Unit at least twenty (20) days prior
to the effective date of any such Sale, sublease or mortgage of a Unit. Each
NYTC Unit Owner shall notify promptly the FC Unit Owners at any time NYTC
occupies Units within the Building, the Common Interest attributable to which,
in the aggregate, constitutes less than twenty
percent (20%).  Each NYTC Unit Owner
shall, from time to time within ten (10) days after request by an FC Unit
Owner, certify in writing to such FC Unit Owner the amount of space within its
NYTC Individual Unit that is owned pursuant to a Unit Lease by NYTC and its
Affiliates and the amount of space within its Unit that is occupied by
NYTC.  So long as NYTC occupies Units
within the Building, the Common Interest attributable to which, in the
aggregate, constitutes at least twenty percent (20%), each FC Unit Owner shall
from time to time within ten (10) days after request by NYTC certify in writing
to NYTC whether there are any subleases affecting its FC Individual Unit, and
if so, the term of any such sublease and whether or not such sublease includes
any expansion or extension options. 
Each FC Unit Owner agrees to include in any sublease entered into by it
for space within its Unit that is subject to an NYTC purchase or sublease
option under Section 4 or Section 5 of this Article XX, a
provision that the subtenant thereunder agree that upon the exercise by NYTC of
such option, if any, to deliver to NYTC without cost to NYTC, copies of any
drawings and/or CADD design files in such subtenant’s possession for all
leasehold improvements made by or on behalf of such subtenant to such Unit on
an “as-built basis.”

 

Section 2. 
FC Unit Owners’ Lockout Period. 
Notwithstanding Section 1 of this Article XX, so long as NYTC
owns a leasehold interest in (including without limitation as the tenant under
a sale-leaseback or similar structure), and occupies, Units within the
Building, the Common Interest attributable to which, in the aggregate,
constitutes at least twenty percent (20%), no FC Unit Owner shall Sell its FC
Individual Unit or permit the sale of an interest in

 

47

 

said FC Unit Owner until the fifteenth (15th) anniversary of
the date of the Operating Agreement [i.e. December 12, 2001] (or such
earlier date as NYTC shall cease to own a leasehold interest in and occupy Units
within the Building, the Common Interest attributable to which, in the
aggregate, constitutes at least twenty percent (20%), the “Lockout Period”)
except (a) to NYTC, (b) to an Affiliate of Forest City Enterprises, Inc. or
Bruce C. Ratner, (c) 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 (d) to a
trust established for the 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). Except as
provided in the following sentence, any purchaser or transferee of a leasehold
interest in any FC Individual Unit or any interest in FC Unit Owner shall be
continue to be bound by the restrictions set forth in this Section 2. The
restrictions set forth in this Section 2 shall not apply to transfers of
any interest (x) in an FC Unit Owner or to a Sale of an FC Individual Unit
permitted under the Recognition Agreement (which transfers and Sales shall be
subject to the NYTC Participation Rights set forth in the Recognition
Agreement), (y) to transfers of any FC Individual Unit in foreclosure or deed
in lieu of foreclosure to any Registered Mortgagee or its *designee
or* nominee or any transfer of such FC Individual Unit after
title has been conveyed pursuant to such foreclosure or deed in lieu of
foreclosure or (z) to Ground Lessee from and after the termination of the
applicable Unit Lease, or to any transfers thereafter. Any Sale in violation of
this Section 2 shall be null and void.

 

Section 3. 
NYTC’s Right of First Refusal and Right of First Offer to Purchase FC
Individual Unit(s).

 

(a)           NYTC’s
Right of First Refusal.  If an FC
Unit Owner makes or receives a bona fide offer (or, in the case of an FC Unit
Owner Interest Sale, a series of related offers) which is acceptable to such FC
Unit Owner for either (i) the Sale of any FC Individual Unit(s) owned by such
FC Unit Owner to an independent third party that is not an Affiliate of such FC
Unit Owner or an Affiliate of any of the members of such FC Unit Owner (an “FC
Individual Unit Sale”) or (ii) the sale, in a single transaction or a
series of related transactions, of ninety five percent (95%) or more of the
membership interests of such FC Unit Owner to an independent third party that
is not an Affiliate of such FC Unit Owner or an Affiliate of any of the members
of such FC Unit Owner (an “FC Unit Owner Interest Sale”), such FC Unit
Owner shall notify NYTC and shall deliver to NYTC a term sheet (“Section 3(a)
Term Sheet”) fully executed by such FC Unit Owner and the prospective
purchaser or transferee containing all of the pertinent terms of such proposed
FC Individual Unit Sale or FC Unit Owner Interest Sale, including without
limitation, the name of the proposed purchaser, the purchase price, deposit,
financing arrangements, contingencies, conditions, closing date and any other
economic and material non-economic terms of such transaction. Except as
expressly provided in the immediately preceding sentence, the right of first
refusal provided in this Section 3(a) shall not apply to a sale of any
direct or indirect beneficial interest in any FC Unit Owner.

 

Within the thirty (30)
day period after receipt of both the notice and the Section 3(a) Term
Sheet from such FC Unit Owner and delivery to NYTC of complete copies of all

 

48

 

If the FC Individual Unit Sale or FC Unit Owner
Interest Sale pursuant to this Section 3(a) is not consummated within
twelve (12) months after the expiration of the earlier of the date NYTC fails
to exercise its right of first refusal as hereinabove required and the date
NYTC waives such right in writing (the “12-Month Period”), the FC Unit
Owner shall be required to comply again with the provisions of this
Section 3(a) and re-offer the Unit in question to NYTC prior to any FC
Individual Unit Sale or FC Unit Owner Interest Sale, whether such proposed FC
Individual Unit Sale or FC Unit Owner Interest Sale is on the same or different
terms (or to the same or different prospective purchaser) as set forth in the
original notice and Section 3(a) Term Sheet sent to NYTC, and the 30-day
period for NYTC to accept such offer hereinabove provided for shall again apply
to such re-offer.  In addition, in the
event the FC Unit Owner modifies the terms set forth in the original
Section 3(a) Term Sheet at any time (i.e., whether or not during the
12-Month Period), FC Unit Owner shall be required to comply again with the
provisions of this Section 3(a) and re-offer the Unit in question to NYTC
on such modified terms prior to the FC Individual Unit Sale or FC Unit Owner
Interest Sale, and the 30-day period for NYTC to accept such offer hereinabove
provided for shall again apply with respect to such re-offer; provided,
however, that (i) if the sole change in terms is a reduction of the purchase
price and/or other consideration for the FC Individual Unit Sale or FC Unit
Owner Interest Sale such that the total amount of the purchase price and other
consideration is not less than 95% of the total purchase price and other
consideration contained in the original Section 3(a) Term Sheet, and (ii)
such re-offer to NYTC is made during the sixty (60) day period following the
date NYTC waives or is deemed to have waived the offer contained in the
original Section 3(a) Term Sheet pursuant to this Section 3(a), the
obligation to re-offer the Unit or interests to NYTC shall nevertheless apply,
but the time period for NYTC to accept such re-offer of the Unit or interests
shall be limited to (i) five (5) Business Days following receipt of the revised
Section 3(a) Term Sheet if such reduction is being made in connection with
a proposed FC Individual Unit Sale or FC Unit Owner Interest Sale to the
purchaser set forth in the original Section 3(a) Term Sheet, and (ii) ten
(10) Business Days following receipt of the revised Section 3(a) Term
Sheet if such reduction is being made in connection with a proposed FC
Individual Unit Sale or FC Unit Owner Interest Sale to a purchaser other than
the purchaser set forth in the original Section 3(a) Term Sheet.  NYTC agrees to execute and deliver to the FC
Unit Owner and the proposed purchaser at the earlier of (x) the end of said
five (5) Business Day or ten (10) Business Day period (as the case may be) and
(y) the date it waives this right of first refusal in writing, an NYTC Waiver
and Estoppel Letter with the appropriate section reference and dates,
names and addresses completed as appropriate. 
The failure of NYTC to execute and deliver an NYTC Waiver and Estoppel
Letter shall in no event invalidate its failure to exercise its right of first
refusal under this Section 3(a) and the consequent waiver of such right.

 

The restrictions on an FC Unit Owner and the rights of
NYTC under this Section 3(a) shall not apply (i) in the event of a
FC Individual Unit Sale or FC Unit Owner Interest Sale in foreclosure or deed
in lieu of foreclosure or any transfer of such FC Individual Unit or membership
interest, partnership interest or stock thereafter by a Registered Mortgagee or
its nominee *or designee* (ii) to any transfer of an
FC Individual Unit pursuant to clause (a), (b), (c) or (d) of Section 2
of this Article XX (iii) any transfers of an FC Individual Unit or
interest in an FC Unit Owner otherwise permitted under the Recognition
Agreement, subject to the terms thereof (iv) unless NYTC occupies Units within
the Building, the Common Interest attributable to which, in the aggregate,
constitutes at least twenty percent (20%), (v) to transfers to Ground

 

50

 

who subleases at least two (2) floors in the
FC Collective Unit (excluding space within the Retail Unit) for an initial term
of not less than ten (10) years.

 

Section 6.  NYTC’s Option to Sublease v, Purchase.  Notwithstanding anything to the contrary
contained in Sections 4 and 5 of this Article XX, if
(a) NYTC desires to exercise any of its purchase options under Section 4.
and (b) (i) such Sale to NYTC of any FC Individual Unit *and the repayment of debt with the net proceeds thereof* would result in such FC Unit Owner incurring
any prepayment penalties, breakage costs or other similar fees (collectively, “Breakage
Costs”) under any financing of such FC Individual Unit (other than
immaterial penalties, costs or fees) *OR THE TRANSFER OF SUCH FC INDIVIDUAL
UNIT WOULD CAUSE A DEFAULT UNDER ANY FINANCING OF SUCH FC INDIVIDUAL UNIT*, or
(ii) the date upon which the closing on the Sale of such Unit would occur falls
within a lock-out period under such financing, then the applicable FC Unit
Owner(s) must notify NYTC of such fact (the “Section 6 Notice”)
within fifteen (15) days after NYTC gives notice under Section 4 of
this Article XX.  NYTC shall have
fifteen (15) days from the delivery of the Section 6 Notice to withdraw
its notice under Section 4 of this Article XX to exercise such
option.  If NYTC does not withdraw its
notice under Section 4 of this Article XX to exercise such
option, then NYTC shall not be permitted to exercise such purchase option, but
may instead exercise its corresponding sublease option under Section 5
of this Article XX by delivering within fifteen (15) days
thereafter to the applicable FC Unit Owner(s) an NYTC Sublease for the
applicable FC Individual Unit(s) together with either (A) the Security or (B)
so long as NYTC shall have a rating of A- or better as determined by the Rating
Agency, an NYTC Lease Guaranty in lieu of the Security.  The annual rental under such NYTC Sublease
shall be equal to ten percent (10%) of what would have been the purchase price
for such FC Individual Unit(s) had NYTC been permitted to exercise its purchase
option under Section 4 of this Article XX.  Promptly upon receipt of such NYTC Sublease
together with the Security or NYTC Lease Guaranty, as applicable, such FC Unit
Owner shall execute a counterpart of such NYTC Sublease and deliver it to NYTC,
provided however, that the failure of such FC Unit Owner to execute and/or
deliver the NYTC Sublease shall not in any way affect the exercise of this
option by NYTC.  If the terms of any
such financing permit such prepayment only upon the payment of Breakage Costs,
then NYTC may nonetheless exercise its purchase option, provided, however, that
(x) if such exercise is within the first ten (10) years after such financing,
NYTC shall pay all such Breakage Costs and (y) if such exercise is after the
tenth (10th) year of such financing, the applicable FC Unit Owner
shall pay all such Breakage Costs.  In
no event may the terms of any financing of any FC Individual Unit provide for a
lock-out period beyond ten (10) years from the date of such financing, and, in
no event shall the applicable FC Unit Owner, after receipt of a Section 6
Notice, enter into any financing encumbering the applicable FC Individual Unit
which precludes the transfer of such FC Individual Unit.  Upon request by NYTC from time to time, the
applicable FC Unit Owner shall provide to NYTC information regarding the terms
of any lock-out periods under any such financing.

 

Any Section 6 Notice
given by an FC Unit Owner shall set forth the first date (the “Lockout
Expiration Date”) on which, pursuant to the terms of the FC Unit Owner’s
mortgage then encumbering the Unit in question, such FC Unit Owner is permitted
to obtain a release of such mortgage from such Unit without the payment of
Breakage Costs, which date shall in no event be longer than ten (10) years
following the date such mortgage was first granted with respect to such
Unit.  In the event NYTC exercises its
option under this Section 6 to sublease such Unit following the giving of
such Section 6 Notice (the “Interim Sublease Option”; the NYTC
Sublease executed with respect to such Unit following the exercise of such
Interim

 

60

 

(E)           the Unit Owner will not incur any advertising or promotional
expenditures in renting the subject Unit(s) 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 and
condominium common charges without base years or base amounts; and

 

(ix)        the term of the NYTC Sublease and the other terms and conditions of the
NYTC Sublease for the subject Unit(s).

 

In no event, however, shall the arbitrators
consider, or make any increase or decrease in the Fair Market Rent for the
subject Unit(s) 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.

 

Section 9.  Registered Mortgagee Requirements; Rights
of Registered Mortgagees.  (a) The
term “Registered Mortgage” as used herein shall mean a mortgage, as the
same may be amended, modified, [TEXT DELETED: OR] restated, *increased, split, severed and/or assigned* from time to time, given to secure the
repayment of money or other obligation owed by a Unit Owner and held by a
Lending Institution or NYTC  (i) which
shall comply with the provisions of this Section 9 and the affected
Unit Owner’s Unit Lease, (ii) *[ADD LANGUAGE CONFIRMING THAT GMAC'S
SUBORDINATION AGREEMENT FORM SATISIFIES (ii)]* which shall include express
provisions *(which provisions may be set forth
in a separate subordinate document)* acknowledging (y) that the lien of such mortgage is subordinate to this
Declaration and the By-Laws (and the provisions thereof and hereof) and to the
Board of Managers’ Liens, the NYTC Board of Managers’ Liens and the FC Board of
Managers’ Liens and (z) that the mortgagee (and its successors and assigns)
will take title subject to this Declaration and the By-Laws, and (iii) a
photostatic copy of which has been delivered to the other Unit Owners, the
Board of Managers, the NYTC Board of Managers, the FC Board of Managers and the
Ground Lessee, together with a certification by the affected Unit Owner and the
mortgagee confirming that the photostatic copy is a true copy of the mortgage
in question.  In the event of any
assignment of a Registered Mortgage or in the event of a change of address of a
Registered Mortgagee or of an assignee of such Registered Mortgage, notice of
the new name and address shall be provided to the other Unit Owner, the Board
of Managers and the Ground Lessee.  The
term “Registered Mortgagee” as used herein shall mean the holder of a
Registered Mortgage from time to time.

 

*[ADD
LANGUAGE EQUIVALENT TO ATTACHED RIDER 65—The
term “Registered Mortgage” shall also include the mortgages held by GMAC
Commercial Mortgage Corporation as agent encumbering the Property as of the
date of recording of the Declaration, as each mortgage may be increased,
amended, restated, modified, split,  severed
and assigned (except for any assignment in connection with a refinancing) from
time to time (each, a “Construction Loan Mortgage”).  For purposes of this Section 14.3(b),
GMAC Commercial Mortgage Corporation shall be deemed to have given an RM Notice
with respect to each Construction Loan Mortgage specifying the same addresses
that are set forth in the documents governing such mortgages.]*

 

(b)  If a Unit Owner and its Registered Mortgagee
shall have served on the other Unit Owners, the Board of Managers, the NYTC
Board of Managers, the FC Board of Managers and Ground Lessee, in the manner
required in the preceding subparagraph, a notice specifying the name and
address of such Registered Mortgagee, such Registered Mortgagee shall be given
a copy of each and every notice, bill and statement and other information,
correspondence and material provided for or required to be given hereunder or
under the By-Laws (including if given by the Board of Managers, the NYTC Board
of Managers or the FC Board of Managers) at the same time as and whenever such
notice shall thereafter be given thereunder or hereunder, at the address last
furnished by such Registered Mortgagee. 
Any Registered Mortgagee as of the date of recording of this Declaration
shall be deemed to have properly delivered to the Unit Owners a notice
specifying its name and address.  After
receipt of

 

65

 

such notice from a Registered Mortgagee, no
notice, bill, statement and other correspondence and material thereafter given
hereunder or under the By-Laws (whether by any Unit Owner to any other Unit
Owner, or by any Unit Owner to the Board of Managers, the NYTC Board of
Managers or the FC Board of Managers or by the Board of Managers, the NYTC
Board of Managers or the FC Board of Managers to any Unit Owner) shall be
deemed to have been given hereunder or under the By-Laws unless and until a
copy thereof shall have been so given to the Registered Mortgagee(s).  If a Registered Mortgage so provides or
otherwise requires:

 

(1)  Any insurance proceeds or condemnation award
payable to a Unit Owner (and not the Depositary) pursuant to its Unit Lease or
hereunder shall [TEXT DELETED: UPON NOTICE FROM A REGISTERED MORTGAGE OF SUCH
UNIT OWNER,] be delivered instead to the Unit Owner’s *most senior*
Registered Mortgagee.

 

(2)  If a Unit Owner fails to appoint an
arbitrator or otherwise take any action as may be required or permitted
hereunder or under the By-Laws with respect to arbitration, such appointment or
action as otherwise would have been permitted by that Unit Owner may be taken
within the relevant time period applicable to such Unit Owner *PLUS TEN (10) ADDITIONAL
DAYS* by its Registered Mortgagee and such appointment and action shall be
recognized in all respects by the other Unit Owners, the Board of Managers, the
NYTC Board of Managers and the FC Board of Managers.

 

(b)  If more than one Registered Mortgagee having a lien on any Unit
has exercised any of the rights afforded by this Section 9, only
that Registered Mortgagee, to the exclusion of all other Registered Mortgagees,
whose Registered Mortgage is most senior in lien with respect to the applicable
Unit, shall be recognized by the other Unit Owners as having exercised such
right, for so long as such Registered Mortgagee shall be diligently exercising
its rights hereunder with respect thereto, and thereafter only the Registered
Mortgagee whose Registered Mortgage is next most senior in lien with respect to
the applicable Unit, shall be recognized by the other Unit Owners *(WITH
RESPECT TO SUCH SPECIFIC EXERCISE ONLY)*.

 

(c)  Each Unit Owner shall give its Registered Mortgagee(s) prompt
notice of any arbitration or legal proceedings involving obligations hereunder
or under the By-Laws.  Subject to the
provisions of the previous subparagraph, each Registered Mortgagee shall have
the right to intervene in any such proceedings and to be made a party to such
proceedings, and the parties hereto do hereby consent to such
intervention.  In the event that any
Registered Mortgagee does not elect to intervene or become a party to any such
proceedings, each Unit Owner shall give its Registered Mortgagee notice and a
copy of any award or decision made in any such proceedings, which decision
shall be binding on such Registered Mortgagee.

 

(d)  Subject to the provisions of subsection 9(c) of this Article XX,
and upon receipt by any Registered Mortgagee of any notice that its
mortgagor is in default hereunder, each such Registered Mortgagee (i) shall
thereupon have a period of fifteen (15) Business Days *AFTER THE SAME BECOMES
AN EVENT OF DEFAULT* [TEXT DELETED: MORE THAN GIVEN TO SUCH UNIT OWNER IN EACH
INSTANCE IN THE CASE OF A DEFAULT IN THE PAYMENT OF UNIT OWNER EXPENSES OR IN
THE PAYMENT OF ANY SUM DUE HEREUNDER OR UNDER THE BY-LAWS AND THIRTY (30) DAYS
MORE THAN GIVEN TO SUCH UNIT OWNER IN EACH INSTANCE IN THE CASE OF ANY OTHER
DEFAULT,] for remedying the default, or causing the same to be remedied, or
causing action to remedy the default to be commenced, and (ii) shall, within
such periods and otherwise as herein

 

66

 

provided, have the right to remedy such default, cause the same to be
remedied or cause action to remedy such a default to be commenced.  The Board of Managers, the NYTC Board of
Managers and the FC Board of Managers, as applicable, shall accept performance
by a Registered Mortgagee (or its designee or nominee) of any covenant,
condition or agreement on a Unit Owner’s part to be performed hereunder and the
exercise by a Registered Mortgagee (or its designee or nominee) of Unit Owner’s
self-help remedies with the same force and effect as though performed or
exercised by the defaulting Unit Owner.

 

Notwithstanding any other
provision of this Declaration or the By-Laws to the contrary (including,
without limitation, the provisions of Section 1 of Article XXI
hereof), no default or Event of Default by a Unit Owner shall be deemed to
exist as long as a Registered Mortgagee within fifteen (15) Business Days after
the [TEXT DELETED: EXPIRATION OF THE TIME GIVEN TO SUCH UNIT OWNER PURSUANT
HERETO OR TO THE BY-LAWS TO REMEDY THE EVENT OR CONDITION WHICH WOULD OTHERWISE
CONSTITUTE A DEFAULT OR] *SAME BECOMES AN* Event of Default hereunder, (A)
shall have cured such default or Event of Default to the extent capable of cure
by the payment of money, or (B) to the extent the same is not capable of cure
by the payment of money, shall have delivered to the Board of Managers, the
NYTC Board of Managers, the FC Board of Managers and Ground Lessee [TEXT
DELETED: ITS WRITTEN AGREEMENT] *A WRITTEN NOTICE STATING THAT IT INTENDS* to
(y) take the action necessary to cure the default and to prosecute the same to
completion, or (z) if possession of the Unit is required in order to cure the
default, to institute foreclosure proceedings and obtain possession directly or
through a receiver, and to prosecute such proceedings with diligence and, upon
obtaining such possession, commence promptly to cure the default or Event of
Default and to prosecute the same to completion with diligence, provided that
during the period in which such action is being taken (and any foreclosure
proceedings are pending), all of the other obligations of the Unit Owner
hereunder or under the By-Laws, to the extent they are reasonably susceptible
of being performed by the Registered Mortgagee, are being performed.  However, at any time after the delivery of
the aforementioned [TEXT DELETED: AGREEMENT] *NOTICE*, the Registered Mortgagee
may notify the Board of Managers, the NYTC Board of Managers and the FC Board
of Managers in writing, that it has relinquished possession of the Unit or that
it will not institute foreclosure proceedings or, if such proceedings have been
commenced, that it has discontinued *DILIGENTLY PROSECUTING* them, and [TEXT
DELETED: IN SUCH EVENT, THE REGISTERED MORTGAGEE SHALL HAVE NO FURTHER
LIABILITY UNDER SUCH AGREEMENT FROM AND AFTER THE DATE IT DELIVERS SUCH NOTICE
TO THE BOARD OF MANAGERS, THE NYTC BOARD OF MANAGERS AND THE FC BOARD OF
MANAGERS (EXCEPT FOR ANY OBLIGATIONS ACCRUING PRIOR TO THE DATE IT DELIVERS
SUCH NOTICE), AND], thereupon, the Board of Managers, the NYTC Board of Managers
and the FC Board of Managers shall have the unrestricted right to take any
other action they deem appropriate by reason of any default.

 

(e) In addition,
notwithstanding any provision hereof or of the By-Laws to the contrary, if a
Unit Owner fails to pay its Unit Owner Expenses or any other amounts due
hereunder or is otherwise in default hereunder or under the By-Laws, and if the
defaulting Unit Owner’s Registered Mortgagee takes the actions described in
subclauses (y) or (z) of the preceding subsection 9(d) (as and when
provided therein), then, following the taking of any such action by the
defaulting Unit Owner’s Registered Mortgagee and provided that, as set forth in
the last sentence of this subsection 9(e), the Registered Mortgagee taking
such action shall then be current in the payment of all amounts due in respect
of (or on behalf of) such defaulting Unit Owner (i) the Registered Mortgagee
shall be entitled to vote in lieu of such defaulting Unit Owner on all matters
or actions to be decided upon by the Unit Owners (as if the Registered
Mortgagee were the defaulting Unit Owner), (ii)  the Registered Mortgagee shall be entitled to

 

*[ADD PROVISION TO THE EFFECT THAT (i), (ii) AND (iii) SHALL ALSO APPLY
IF REGISTERED MORTGAGEE INFORMS THE UNIT OWNERS THAT THERE IS AN OUTSTANDING
EVENT OF DEFAULT UNDER ITS MORTGAGE]*

 

67

 

immediately name substitute Managers to act on the Board of Managers,
the NYTC Board of Managers and the FC Board of Managers, as the case may be,
(in lieu of any Managers elected by the defaulting Unit Owner and without
regard to the unexpired term of such Manager’s tenure) and (iii) the Board of
Managers, the NYTC Board of Managers and the FC Board of Managers, as
applicable, shall rely (and be entitled to rely) on the votes of or actions
taken by the Registered Mortgagee (or by any Manager elected by the Registered
Mortgagee) in determining the appropriateness of any action to be taken.  The right of the Registered Mortgagee (or of
any Manager elected by the Registered Mortgagee) to vote on any matter to be
decided upon (or any action to be taken) by the Unit Owners, as described in
the preceding sentence, shall cease immediately upon the Registered Mortgagee’s
failure to timely pay any of the Unit Owner Expenses or other amounts due or
payable by the defaulting Unit Owner for a period of more than fifteen (15)
days after notice by the Board of Managers, the NYTC Board of Managers or the
FC Board of Managers, as applicable, to such Registered Mortgagee.  Payment or performance of any obligation of
a Unit Owner by a Registered Mortgagee (prior to the date on which such
Registered Mortgagee or its assignee or designee or nominee shall take title to
the defaulting Unit Owner’s Unit) shall not give rise to any obligation on the
part of the Registered Mortgagee to pay or perform in the future.

 

In the event of a conflict between the terms of this
Section 9 and any applicable terms of a Unit Lease with respect to the
rights or obligations of Ground Lessee, then the terms of the Unit Lease shall
prevail.

 

Section 10.  Binding Effect.  The easements, covenants and restrictions
created herein and in the By-Laws shall be binding upon and inure to the
benefit of all parties having or acquiring any right, title or interest in or
to any portion of, or interest or estate in, any Unit.

 

Section 11.  No Severance of Ownership.  No Unit Owner shall execute any mortgage or
other instrument conveying or mortgaging title to its Unit without including
therein such Unit’s Common Interest. 
Any such mortgage or other instrument purporting to affect one or more
of such interests without including all such interests shall be deemed and
taken to include the interest or interests so omitted even though the latter
shall not be expressly mentioned or described therein.

 

Section 12.  Compliance With Unit Leases; Conveyance
of Unit Lease is Conveyance of Unit. 
(a) Notwithstanding any provision of this Declaration to the contrary,
no Unit Owner shall be permitted to voluntarily convey, sell, mortgage, pledge,
hypothecate, lease or otherwise transfer its interest in any Unit (x) unless
such transaction complies with the terms of its Unit Lease, (y) unless and
until such Unit Owner shall have paid in full to the Board of Managers (and to
the NYTC Board of Managers or the FC Board of Managers, as applicable) all
unpaid Unit Owner Expenses and assessments theretofore assessed by the Board of
Managers, the NYTC Board of Managers or the FC Board of Managers, as the case
may be, against all of such Unit Owner’s Units and (z) until such Unit Owner
shall have satisfied all unpaid liens against all of its Units (and leasehold
estate under its Unit Lease), other than any mortgages.  This Section 12(a) shall not apply to a
transfer in foreclosure, *DEED-IN-LIEU OF FORECLOSURE* or a transfer in
connection with the termination of a Unit Lease by Ground Lessee due to a
default thereunder.

 

68

 

(b)  A Unit
Owner shall convey its leasehold interest under its Unit Lease in the event
that such Unit Owner conveys or sells its Unit (i.e., a Unit cannot be
conveyed separately from the Unit Lease for such Unit).

 

ARTICLE XXI

 

DEFAULTS; REMEDIES

 

Section 1. 
Events of Default.  Each
of the following events shall be deemed an “Event of Default” hereunder:

 

(a)  if a Unit Owner shall fail to pay when due
any of its Unit Owner Expenses or any other amounts due hereunder or under the
By-Laws, and such default shall continue for a period of fifteen (15) days
after written notice, by the Board of Managers to such delinquent Unit Owner;
or

 

(b)  if a Unit Owner shall fail to pay any monies
expended by the Board of Managers in curing any default by such Unit Owner
hereunder or under the By-Laws, and such default shall continue for a period of
fifteen (15) days after written notice by the Board of Managers to such
delinquent Unit Owner; or

 

(c)  if a Unit Owner defaults in the performance
of any non-monetary obligation set forth in this Declaration or the By-Laws,
and such default continues for a period of thirty (30) days following receipt
by the defaulting Unit Owner from the Board of Managers of a notice of default,
or, if the default is of a nature that it cannot reasonably be cured within
such thirty (30) day period, if the Unit Owner fails to (i) commence such cure
within such thirty (30) day period and (ii) thereafter proceed with diligence
and continuity to complete such cure; or

 

(d)  if a Unit Owner shall fail to pay any sum
owed to Ground Lessee under its Unit Lease beyond any applicable notice or
grace period set forth therein; or

 

(e)  if a Unit Owner shall default in the
performance of any other obligation of such Unit Owner under its Unit Lease
beyond any applicable notice or grace period set forth therein.

 

Section 2. 
Board of Managers’ Rights to Cure.  The Board of Managers shall have the right, but not the
obligation, to cure any Event of Default by any Unit Owner (which continues
following the expiration of applicable notice and grace periods, as hereinabove
provided).  If the Board of Managers
does not cure an Event of Default within fifteen (15) days after any applicable
grace period, then the non-defaulting Unit Owners shall have the right, but not
the obligation, to cure such Event of Default. The Board of Managers (or the
non-defaulting Unit Owner(s), as the case may be) shall notify Ground Lessee,
the other Unit Owners, the defaulting Unit Owner, and each Unit Owner’s
Registered Mortgagee(s), of its intention to cure the defaulting Unit Owner’s
Event(s) of Default. Any funds expended by the Board of Managers (or the
non-defaulting Unit Owner(s), as the case may be), together with interest at
the Interest Rate from the date of expenditure to the date of repayment, shall
be reimbursed by the defaulting

 

*ADD SELF HELP RIGHT OF THE UNIT OWNERS TO CURE ANY FAILURE BY THE
BOARD OF MANAGERS TO PERFORM ITS OBLIGATIONS HEREUNDER TO THE EXTENT SUCH
FAILURE WOULD GIVE RISE TO A DEFAULT UNDER A UNIT OWNER'S SEVERANCE LEASE.*

 

69

 

by the defaulting Unit Owner (i) attempting to
invalidate such termination of the Unit Lease or (ii) ascerting any claim to
possession of the Unit, is finally resolved) (such date, the “Public Party
Possession Date”), to pay all Unit Owner Expenses relating to such Unit and
to perform all other obligations of the Unit Owner under this Declaration and
the By-Laws accruing from and after the date of such termination.  The Board of Managers shall accept performance
by Ground Lessee of any covenant, condition or agreement on Unit Owner’s part
to be performed hereunder with the same force and effect as though performed by
such Unit Owner.

 

(b)           In addition, notwithstanding any provision of this Declaration or the
By-Laws to the contrary, if (x) a Unit Owner fails to pay its Unit Owner
Expenses or any other amounts due hereunder, (y) the defaulting Unit Owner’s
Registered Mortgagee does not cure the defaulting Unit Owner’s default(s) (as
and when provided in Article XX hereof), and (z) an Event of Default
exists under the applicable Unit Lease, (i) the Ground Lessee shall be entitled
to vote on all matters or actions to be decided upon by the Unit Owners (as if
the Ground Lessee were the defaulting Unit Owner), (ii) the Ground Lessee shall
be entitled to name substitute Managers to act on the Board of Managers (in
lieu of any Managers elected by the defaulting Unit Owner) and (iii) the Board
of Managers shall rely (and be entitled to rely) on the votes of or actions
taken by the Ground Lessee (or by any Manager elected by the Ground Lessee) in
determining the appropriateness of any action to be taken.  The right of Ground Lessee (or of any
Manager elected by the Ground Lessee) to vote on any matter to be decided upon
(or any action to be taken) by the Unit Owners, as described in the preceding
sentence, shall cease immediately upon Ground Lessee’s failure to timely pay
any of the Unit Owner Expenses or other amounts due or payable by the
defaulting Unit Owner.

 

Section 6.  Board of Managers’ Lien.  Notwithstanding any provision of this
Declaration to the contrary, any Board of Managers’ Lien shall be prior to all
mortgages, liens or encumbrances affecting any Unit, except liens for real
estate taxes, all “Charges” (as defined in the Unit Leases) past due and unpaid
on the Unit and the Ground Lessee’s interest under the Unit Lease.  Upon a Registered Mortgagee’s payment (on
behalf of a defaulting Unit Owner) to the Board of Managers at any time and
from time to time of monies due to the Board of Managers (or other Unit
Owner(s), as the case may be) and in satisfaction of the Board of Managers’
Lien, the amount of the Board of Managers’ Lien to which the lien of Registered
Mortgages are subject and subordinate shall be reduced by the amount of any
such payment(s) made by the Registered Mortgagee to the Board of Managers in
satisfaction of the Board of Managers’ Lien.

 

Section 7.  Title of Board of Managers on Foreclosure.  In the event of the Board of Managers’
assumption of any Unit Lease at a foreclosure sale, or in the event that any
Unit Owner shall convey its Unit to the Board of Managers in accordance with
Section 339-x of the Real Property Law, leasehold title to such Unit shall
be held by the Board of Managers or its designee on behalf of all of the other
Unit Owners and the Board of Managers shall have the power to hold, lease,
mortgage, vote, sell or otherwise deal with such Unit.  In the event that the leasehold interest in
any Unit shall be so acquired by the Board of Managers, or its designee on behalf
of all Unit Owners as tenants-in-common, all such Unit Owners shall be deemed
to have waived all rights of partition with respect to such Unit.

 

Section 8.  Rights, Remedies and Obligations of the
NYTC Board of Managers and FC Board of Managers.  All of the rights, remedies and obligations of the Board of

 

*BOARD OF MANAGERS WILL GIVE A REASONABLE SNDA TO TENANTS WHICH ARE
ENTITLED TO AN SNDA UNDER THE GMAC LOAN DOCUMENTS.*

 

 

72

* MARKED CHANGES

 

EXHIBIT
B

 

BY-LAWS

OF

THE NEW YORK TIMES BUILDING ASSOCIATION, INC.

 

A New
York not-for-profit corporation

 

ARTICLE I

 

PLAN OF LEASEHOLD
CONDOMINIUM OWNERSHIP

 

Section 1. 
Name.  These are the
By-Laws of The New York Times Building Association, Inc.

 

Section 2. 
Purpose.  The Association
is formed to serve as a means through which the Unit Owners may take action
with regard to the administration, management, maintenance, repair and
operation of the Premises in accordance with the Declaration, to which these
By-Laws are appended as an exhibit.

 

Section 3. 
By-Laws Applicability. 
The provisions of these By-Laws are applicable to the Association.  Unless otherwise defined herein, all
capitalized terms used herein shall have the meanings ascribed to such terms in
the Declaration.

 

Section 4. 
Office.  The Office of the
Association and of the Board of Managers shall be located at the Building

 

Section 5. 
Fiscal Year.  The fiscal
year of the Association shall be the calendar year unless otherwise determined
by the Board of Managers.

 

ARTICLE II

 

UNIT OWNER MEETINGS AND
VOTES

 

Section 1. 
Annual Meetings.  Within
thirty (30) days after the date on which the Declaration shall be recorded in
the Register’s Office, Declarant shall call the first annual Unit Owners’
meeting.  Thereafter, annual meetings
shall be held on the anniversary of such date in each succeeding year, or on
such other date as shall be selected by the Unit Owners.  A representative of Ground Lessee and of
each Registered Mortgagee may attend any such meeting.

 

Section 2. 
Special Meetings.  Special
meetings of the Unit Owners may be called at any time by any Unit Owner, by the
President or by any Vice President. A representative of Ground Lessee and of
each Registered Mortgagee may attend any such meeting.

 

B-1

 

Section 3.  Notice of Meetings.  The President or the Secretary shall mail a
notice of each annual or special meeting, stating the purpose thereof as well
as the time and place where it is to be held, to each Unit Owner of record, to
Ground Lessee and to each Registered Mortgagee, at least ten (10) but not more
than thirty (30) days prior to such meeting. 
Notice of any meeting need not be given to a Unit Owner who submits a
waiver of notice, in person or by proxy, whether before or after the meeting,
or who attends such meeting, in person or by proxy.  Notice of any meeting need not be given to Ground Lessee or a
Registered Mortgagee if Ground Lessee or such Registered Mortgagee submits a
waiver of notice, whether before or after the meeting, or if a representative
of Ground Lessee or of such Registered Mortgagee attends such meeting.

 

Section 4.  Place of Meetings.  Meetings shall be held at the Condominium
Office in the Building, or at such other place (in New York County) as shall be
selected by the Board of Managers.

 

Section 5.  Quorum.  (a) A quorum shall be present if a Majority in Interest of the
Unit Owners (and/or their respective Registered Mortgagees and/or Ground
Lessee) entitled to vote shall be present (in person or by proxy) at a meeting
of the Unit Owners.

 

(b) If a quorum (as described
in the preceding paragraph) shall not be present or represented at any meeting
of the Unit Owners, the Unit Owner(s) or person(s) entitled to vote thereat (as
described in the preceding paragraph), present in person or represented by
written proxy, shall have the power to adjourn the meeting from time to time,
without notice other than (i) announcement of such adjournment at the meeting
and (ii) notice of such adjournment to each Unit Owner not in attendance at the
adjourned meeting.  Any business which
might have been transacted at the meeting originally noticed may be transacted
at any adjourned meeting.

 

Section 6.  Voting.  (a) Each Unit Owner shall be entitled to one (1) vote and all
decisions must be approved by a Majority in Interest of the Unit Owners, unless
otherwise provided in the Declaration or these By-Laws.

 

(b)  Each Unit Owner may empower any Person to vote as the proxy of
such Unit Owner at any meeting of Unit Owners by written proxy or authorization
filed with the Secretary.  Such written
proxy or authorization, unless specially limited by its terms, shall remain
effective until there shall be filed with the Secretary a written revocation of
the same or a written proxy or authorization of later date.

 

(c)  As provided in Section 4 of Article XXI
of the Declaration, at any time following and during the continuance of an
Event of Default, the defaulting Unit Owner shall not be entitled to vote on
any matter before (or action or decision to be taken by) the Unit Owners.  In addition (i) as provided in *[WRONG CROSS
REFERENCE; FIX]* Section 2(f) of Article XX of the
Declaration, a Registered Mortgagee may, under the circumstances described in
such section of the Declaration, vote on matters before (or actions or
decisions to be taken by) the Unit Owners, and (ii) as provided in Section 5(b)
of Article XXI of the Declaration, Ground Lessee may, under the
circumstances described in such section of the Declaration, vote on
matters before (or actions or decisions to be taken by) the Unit Owners.

 

B-2

 

hundred five percent (105%) of the last Budget
approved by the Unit Owners, except (i) [TEXT DELETED: OR OTHER ITEMS AND/OR IN
SUCH OTHER AMOUNTS (REGARDLESS OF THE AMOUNT FOR SUCH ITEM SET FORTH IN THE
LAST APPROVED BUDGET) FOR THOSE ITEMS THE COST OF WHICH ARE] *THAT LINE ITEMS
IN A NEW BUDGET MAY EXCEED SUCH 105% CAP TO THE EXTENT A HIGHER COST IS* reasonably
established (such as utilities, insurance and real estate taxes or PILOT), (ii)
to replace or repair broken or worn out items (regardless of the amount
thereof) as necessary to maintain the Building as a high-rise premium
first-class office building, (iii) to comply with DUO as the same pertains to
the Common Elements and (iv) to comply with the Site 8 South Subway Agreement.

 

Section 11.  Rights, Privileges and Obligations of the
NYTC Unit Owners.  All of the
rights, privileges and obligations of the Unit Owners and the Board of Managers
set forth in Sections 1 through 10 of this Article II shall
apply equally to the NYTC Unit Owners and NYTC Board of Managers, respectively,
with respect to the NYTC Limited Common Elements as if the NYTC Unit Owners
were the Unit Owners, the NYTC Board of Managers were the Board of Managers,
the NYTC Limited Common Elements were the Common Elements and a Majority in
Interest of the NYTC Unit Owners were a Majority in Interest of the Unit
Owners.

 

Section 12.  Rights, Privileges and Obligations of the
FC Unit Owners.  All of the rights,
privileges and obligations of the Unit Owners and the Board of Managers set
forth in Sections 1 through 10 of this Article II shall
apply equally to the FC Unit Owners and FC Board of Managers, respectively,
with respect to the FC Limited Common Elements as if the FC Unit Owners were
the Unit Owners, the FC Board of Managers were the Board of Managers, the FC
Limited Common Elements were the Common Elements and a Majority in Interest of
the FC Unit Owners were a Majority in Interest of the Unit Owners.

 

ARTICLE III

 

BOARD
OF MANAGERS; NYTC BOARD OF MANAGERS; FC BOARD OF MANAGERS

 

Section 1.  A.  Number
– Qualifications.

 

(i)  Board of Managers. 
There shall be a Board of Managers of the Association consisting of nine
(9) Managers, which Managers shall be appointed pursuant to the following
formula, and notice of such appointments shall be delivered promptly to the
Unit Owners:

 

(a)           The Retail Unit Owner shall appoint one (1) Manager;

 

(b)           The NYTC Board of Managers (on behalf of the NYTC Unit Owners) shall
appoint five (5) Managers; and

 

(c)           The FC Board of Managers (on behalf of the FC Unit Owners) shall appoint
three (3) Managers.

 

The initial Board of Managers shall be:

 

(a)                                            ,
appointed by the Retail Unit Owner;

 

B-5

 

Section 9.  The Treasurer.  The Treasurer shall have custody of the
funds of the Association and shall keep full and accurate accounts of receipts
and disbursements in books belonging to the Association.  The Treasurer of the Association shall cause
all monies and other valuable effects to be deposited in the name and to the
credit of the Association in such depositories as may be designated by the
Board of Managers.  The Treasurer shall
cause the funds of the Association to be disbursed when such disbursements have
been duly authorized, taking proper vouchers for such disbursements, and shall
render to the President and the Board of Managers, whenever requested, (a) an
account of all transactions as Treasurer and of the financial condition of the
Association, and (b) true copies of all financial statements and/or reports
prepared by the Association’s accountants. 
The Treasurer shall, in general, have all powers and perform all duties
incident to the office of Treasurer and shall exercise and perform such other
powers and duties as may from time to time be assigned by the Board of Managers
or the President or prescribed by these By-Laws.  The Treasurer of the NYTC Board of Managers shall have the same
rights and obligations with respect to the NYTC Limited Common Elements as the
Treasurer of the Board of Managers has in respect of the Common Elements.  The Treasurer of the FC Board of Managers shall
have the same rights and obligations with respect to the FC Limited Common
Elements as the Treasurer of the Board of Managers has in respect of the Common
Elements.

 

Section 10.  Agreements.  All agreements and other instruments shall be executed by the
President or such other person as may be designated by the Board of Managers.

 

Section 11.  Checks.  All checks or demands for money and notes of the Association
shall be signed by both the President and Treasurer, or by such other officer
or officers or such other person or persons as the Board of Managers may from
time to time unanimously designate.

 

Section 12.  Compensation.  Officers shall receive no compensation for
their services.

 

ARTICLE V

 

NOTICES

 

*INCORPORATE REGISTERED MORTGAGEES INTO NOTICE PROVISION*

 

Section 1.  Definition.  Whenever under the provisions of the Declaration or these
By-Laws, any notice, demand, request or other communication required or
permitted hereunder (including any bill, demand or statement) is required to be
given to the Board of Managers, the Ground Lessee or any Unit Owner, any such
notice shall be in writing and shall be deemed to have been duly given and
received (a) if personally delivered with proof of delivery thereof (any notice
or communication so delivered being deemed to have been received at the time
delivered on a Business Day or, if not a Business Day, the next succeeding
Business Day), or (b) by nationally recognized overnight courier (any notice or
communication so sent being deemed to have been received on the first
succeeding Business Day subsequent to the day so sent), in each case addressed
to the Board of Managers or such Unit Owner at such address as appears on the
books of the Association or to the Ground Lessee, at the address set forth in Section 20.01
of the Unit Leases or at such other address given to the Board of Managers by
notice in accordance with

 

B-13

 

the provisions of this Article V.  No notice, demand, request or other
communication required or permitted hereunder shall be effective unless given
as aforesaid.

 

Section 2.  Waiver of Notice.  Whenever any notice is required to be given
under the provisions of the Declaration, or of these By-Laws, a waiver thereof,
in writing, signed by the person or persons entitled to such notice, whether
before or after the time stated herein, shall be deemed the equivalent thereof.

 

ARTICLE VI

 

INSURANCE

 

*WILL BE SUBSTITUTED WITH PROVISIONS FROM GMAC’S MORTGAGE CONCERNING
INSURANCE, SUBJECT TO ADAPTATION OF DEFINED TERMS, SECTION REFERENCES AND
OTHER APPROPRIATE ADAPTATION TO REFLECT THE CONDOMINIUM RATES OF THE BUILDING*

 

Section 1.  Insurance Requirements.  (a) The Board of Managers shall obtain and
maintain the insurance required in this Section 1, and the premiums
for all such insurance shall be a Unit Owner Expense to be shared by the Unit
Owners in proportion to their respective Common Interests: (1) fire insurance
with all risk coverage, vandalism and malicious mischief endorsements, insuring
the Common Elements and covering the interests of the Association, the Board of
Managers and all Unit Owners and their Registered Mortgagees, as their
respective interests in the Common Elements may appear, in an amount equal to
100% of the full replacement value of the portions of the Building required to
be insured against loss or damage pursuant to this clause (1) (exclusive of
foundations and footings), without deduction for depreciation; (2) workers’
compensation insurance, New York State disability benefits insurance and
employer’s liability coverage covering any employees of the Association; (3)
boiler and machinery insurance on equipment constituting part of the Common
Elements; (4) commercial general liability coverage, or equivalent liability
coverage, with respect to ownership, operation, maintenance, use and control
against liability for injury or damage to persons or property in or upon the
Common Elements, including the sidewalks; (5) water damage insurance; (6)
combination crime insurance, including blanket employee dishonesty, forgery or
alteration, covering the Board of Managers, officers of the Association, any
employees of the Board of Managers and the Association and also covering the
managing agent, if any; (7) directors’ and officers’ liability insurance for
members of the Board of Managers and officers of the Association; and (8) any
other insurance deemed advisable or necessary by the Board of Managers or
usually maintained by owners of property similar to the Premises (to the extent
same relates to the Common Elements or matters affecting the Board of Managers,
as opposed to matters relating to the Units exclusively).  To the extent not specified above, all such
insurance shall be in such amounts as the Board of Managers shall from time to
time determine to be reasonable (it being understood, however, that the
liability insurance policy to be maintained by the Board of Managers as
described in clause (4) hereof shall not in any event be in an amount less than
              
Dollars ($             )(4)
in the aggregate and per occurrence).

 

(b) All policies of property
insurance shall contain, if obtainable at reasonable rates, an “Agreed Amount”
endorsement.  Duplicate originals of all
policies of property insurance and of all renewals thereof, together with proof
of payment of premiums, shall be

 

(4) To be completed at time of execution

 

B-14Exhibit
10.3

 

EXECUTION COPY

 

BUILDING LOAN AGREEMENT

 

By and Among

THE NEW YORK TIMES BUILDING LLC

having an address at

One MetroTech Center North

Brooklyn, New York  11201

(Borrower)

NEW YORK STATE URBAN DEVELOPMENT CORPORATION

d/b/a EMPIRE STATE DEVELOPMENT CORPORATION

having an address at

633 Third Avenue

New York, New York  10017

as initial agent

(Initial Agent)

and

GMAC COMMERCIAL MORTGAGE CORPORATION

having an address at

100 South Wacker Drive, Suite 400

Chicago, Illinois  60606,

as agent

(Agent)

Dated as of  June 25, 2004

Amount: $170,529,479

 

	
  Property
  Location:

  	
   

  	
  Eighth Avenue between
  40th and 41st Street, New York, New York

  
	
   

  	
   

  	
   

  
	
  Lots:

  	
   

  	
  1, 5, 8, 14, 53 , 59,
  61, 62, 63 and part of 15

  
	
   

  	
   

  	
   

  
	
  Block:

  	
   

  	
  1012

  
	
   

  	
   

  	
   

  
	
  Section

  	
   

  	
  4

  

Please return time-stamped certified copy to:

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, New York 10019

Attention: Harris B. Freidus, Esq.

 

 

TABLE OF CONTENTS

 

	
  ARTICLE 1 TERMS AND DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2 BUILDING LOAN DOCUMENTS

  	
   

  
	
  SECTION
  2.01

  	
  Building Loan
  Notes

  	
   

  
	
  SECTION
  2.02

  	
  Building Loan
  Mortgage

  	
   

  
	
  SECTION
  2.03

  	
  Construction
  Loan Disbursement Agreement

  	
   

  
	
  SECTION
  2.04

  	
  Assignments of
  Contracts

  	
   

  
	
  SECTION
  2.05

  	
  Assignment of
  Leases

  	
   

  
	
  SECTION
  2.06

  	
  Guaranties

  	
   

  
	
  SECTION
  2.07

  	
  Fee Side Letter

  	
   

  
	
  SECTION
  2.08

  	
  Disclosure Side
  Letter

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3 AGREEMENT TO LEND AND PAYMENT OF BUILDING LOAN

  	
   

  
	
  SECTION
  3.01

  	
  Advances

  	
   

  
	
  SECTION
  3.02

  	
  Cost Overruns

  	
   

  
	
  SECTION
  3.03

  	
  Contingency
  Reserves

  	
   

  
	
  SECTION
  3.04

  	
  Stored Materials

  	
   

  
	
  SECTION
  3.05

  	
  Amount of Each
  Advance

  	
   

  
	
  SECTION
  3.06

  	
  Insufficiency of
  Loan Proceeds

  	
   

  
	
  SECTION
  3.07

  	
  Quality of Work

  	
   

  
	
  SECTION
  3.08

  	
  Initial Required
  Equity Funds; Net Proceeds; Net Award or Proceeds

  	
   

  
	
  SECTION
  3.09

  	
  Payment of
  Indebtedness

  	
   

  
	
  SECTION
  3.10

  	
  Payment of
  Interest

  	
   

  
	
  SECTION
  3.11

  	
  Late Charge

  	
   

  
	
  SECTION
  3.12

  	
  Prepayment

  	
   

  
	
  SECTION
  3.13

  	
  Increased Costs

  	
   

  
	
  SECTION
  3.14

  	
  Illegality and
  Inability to Determine

  	
   

  
	
  SECTION
  3.15

  	
  Payments and
  Computations

  	
   

  
	
  SECTION
  3.16

  	
  Net Payment;
  Taxes

  	
   

  
	
  SECTION
  3.17

  	
  Distribution to
  Lenders

  	
   

  
	
  SECTION
  3.18

  	
  Balloon Payment

  	
   

  
	
  SECTION
  3.19

  	
  Extensions

  	
   

  
	
  SECTION
  3.20

  	
  Reallocations

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4 CONDITIONS PRECEDENT TO BUILDING LOAN CLOSING AND
  DISBURSEMENT OF LOAN PROCEEDS

  	
   

  
	
  SECTION
  4.01

  	
  Conditions of
  Building Loan Closing

  	
   

  
	
  SECTION
  4.02

  	
  Conditions of
  Advances

  	
   

  
	
  SECTION
  4.03

  	
  Conditions of
  Final Construction Advance

  	
   

  
	
  SECTION
  4.04

  	
  Contributions of
  Initial Required Equity Funds

  	
   

  
	
  SECTION
  4.05

  	
  Interest
  Advances

  	
   

  

 

i

 

	
  ARTICLE 5 METHOD OF DISBURSEMENT OF LOAN PROCEEDS

  	
   

  
	
  SECTION
  5.01

  	
  Administration

  	
   

  
	
  SECTION
  5.02

  	
  Procedure for
  Advances

  	
   

  
	
  SECTION
  5.03

  	
  Funds Advanced;
  Capitalized Interest

  	
   

  
	
  SECTION
  5.04

  	
  Advances Do Not
  Constitute a Waiver

  	
   

  
	
  SECTION
  5.05

  	
  Trust Fund
  Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6 REPRESENTATIONS AND WARRANTIES OF BORROWER

  	
   

  
	
  SECTION
  6.01

  	
  Validity of
  Building Loan Documents

  	
   

  
	
  SECTION
  6.02

  	
  Title

  	
   

  
	
  SECTION
  6.03

  	
  Absence of
  Conflicts

  	
   

  
	
  SECTION
  6.04

  	
  Pending
  Litigation

  	
   

  
	
  SECTION
  6.05

  	
  Legal
  Requirements

  	
   

  
	
  SECTION
  6.06

  	
  Compliance with
  All Legal Requirements

  	
   

  
	
  SECTION
  6.07

  	
  Organization
  Status and Authority

  	
   

  
	
  SECTION
  6.08

  	
  Availability of
  Utilities

  	
   

  
	
  SECTION
  6.09

  	
  Condition of
  Property

  	
   

  
	
  SECTION
  6.10

  	
  Accuracy of
  Documents

  	
   

  
	
  SECTION
  6.11

  	
  Encroachments

  	
   

  
	
  SECTION
  6.12

  	
  Brokerage
  Commissions

  	
   

  
	
  SECTION
  6.13

  	
  Financial
  Statements and Other Information

  	
   

  
	
  SECTION
  6.14

  	
  Tax Returns

  	
   

  
	
  SECTION
  6.15

  	
  Material
  Contracts

  	
   

  
	
  SECTION
  6.16

  	
  Guaranteed
  Maximum Price Contract

  	
   

  
	
  SECTION
  6.17

  	
  Access

  	
   

  
	
  SECTION
  6.18

  	
  No Default

  	
   

  
	
  SECTION
  6.19

  	
  Architect’s
  Contract

  	
   

  
	
  SECTION
  6.20

  	
  Plans and
  Specifications

  	
   

  
	
  SECTION
  6.21

  	
  Budgets

  	
   

  
	
  SECTION
  6.22

  	
  Feasibility

  	
   

  
	
  SECTION
  6.23

  	
  Lien Law
  Affidavit

  	
   

  
	
  SECTION
  6.24

  	
  Governmental
  Approvals and Third Party Approvals

  	
   

  
	
  SECTION
  6.25

  	
  No Liens

  	
   

  
	
  SECTION
  6.26

  	
  Separate Tax
  Lot(s)

  	
   

  
	
  SECTION
  6.27

  	
  Margin Stock

  	
   

  
	
  SECTION
  6.28

  	
  Foreign Person

  	
   

  
	
  SECTION
  6.29

  	
  ERISA

  	
   

  
	
  SECTION
  6.30

  	
  Employees

  	
   

  
	
  SECTION
  6.31

  	
  Flood Zone

  	
   

  
	
  SECTION
  6.32

  	
  Investment
  Company Act

  	
   

  
	
  SECTION
  6.33

  	
  Assessments

  	
   

  
	
  SECTION
  6.34

  	
  Property Taxes
  and Other Charges

  	
   

  

 

ii

 

	
  SECTION
  6.35

  	
  No Bankruptcy
  Filing

  	
   

  
	
  SECTION
  6.36

  	
  Filing and
  Recording Taxes

  	
   

  
	
  SECTION
  6.37

  	
  Fraudulent
  Transfer

  	
   

  
	
  SECTION
  6.38

  	
  Insurance
  Compliance

  	
   

  
	
  SECTION
  6.39

  	
  Name; Taxpayer
  Identification Number

  	
   

  
	
  SECTION
  6.40

  	
  Leases

  	
   

  
	
  SECTION
  6.41

  	
  Interest Rate
  Protection Agreements

  	
   

  
	
  SECTION
  6.42

  	
  Prior
  Construction

  	
   

  
	
  SECTION
  6.43

  	
  Equity
  Contribution

  	
   

  
	
  SECTION
  6.44

  	
  Borrower LCs

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7 COVENANTS OF BORROWER

  	
   

  
	
  SECTION
  7.01

  	
  Guaranteed
  Maximum Price Contract; GMP Guaranty

  	
   

  
	
  SECTION
  7.02

  	
  Architect’s
  Contract

  	
   

  
	
  SECTION
  7.03

  	
  Insurance

  	
   

  
	
  SECTION
  7.04

  	
  Application of
  Funds

  	
   

  
	
  SECTION
  7.05

  	
  Property Taxes

  	
   

  
	
  SECTION
  7.06

  	
  Reimbursable
  Costs, Transaction Costs and Other Fees and Costs

  	
   

  
	
  SECTION
  7.07

  	
  Completion of
  Construction

  	
   

  
	
  SECTION
  7.08

  	
  Right of Agent
  to Inspect Property; Publicity

  	
   

  
	
  SECTION
  7.09

  	
  Construction
  Consultant

  	
   

  
	
  SECTION
  7.10

  	
  Correction of
  Defects

  	
   

  
	
  SECTION
  7.11

  	
  Plans and Specifications;
  Approval of Change Orders; Cost Savings

  	
   

  
	
  SECTION
  7.12

  	
  Appraisal

  	
   

  
	
  SECTION
  7.13

  	
  Material
  Contracts; Approval of Activities

  	
   

  
	
  SECTION
  7.14

  	
  Leases

  	
   

  
	
  SECTION
  7.15

  	
  Books and
  Records

  	
   

  
	
  SECTION
  7.16

  	
  Financial
  Statements and Other Information

  	
   

  
	
  SECTION
  7.17

  	
  Compliance with
  Legal Requirements

  	
   

  
	
  SECTION
  7.18

  	
  Title

  	
   

  
	
  SECTION
  7.19

  	
  Maintain
  Existence

  	
   

  
	
  SECTION
  7.20

  	
  Interest Rate
  Caps

  	
   

  
	
  SECTION
  7.21

  	
  Further
  Assurance

  	
   

  
	
  SECTION
  7.22

  	
  Budgets, Etc.

  	
   

  
	
  SECTION
  7.23

  	
  Zoning,
  Easements and Restrictions; Use; Alterations

  	
   

  
	
  SECTION
  7.24

  	
  Laborers,
  Subcontractors and Materialmen

  	
   

  
	
  SECTION
  7.25

  	
  Ownership of
  Personalty

  	
   

  
	
  SECTION
  7.26

  	
  Comply with
  Other Building Loan Documents

  	
   

  
	
  SECTION
  7.27

  	
  Purchase of
  Material Under Conditional Sale Contract

  	
   

  
	
  SECTION
  7.28

  	
  Illegal Activities

  	
   

  

 

iii

 

	
  SECTION
  7.29

  	
  Indemnification

  	
   

  
	
  SECTION
  7.30

  	
  Condominium

  	
   

  
	
  SECTION
  7.31

  	
  Developer

  	
   

  
	
  SECTION
  7.32

  	
  No Transfers or
  Encumbrances

  	
   

  
	
  SECTION
  7.33

  	
  No Distributions

  	
   

  
	
  SECTION
  7.34

  	
  Estoppels

  	
   

  
	
  SECTION
  7.35

  	
  Extension Loan
  Documents

  	
   

  
	
  SECTION
  7.36

  	
  Single Purpose
  Entity

  	
   

  
	
  SECTION
  7.37

  	
  Labor Harmony

  	
   

  
	
  SECTION
  7.38

  	
  Required Notices

  	
   

  
	
  SECTION
  7.39

  	
  Protection
  Against Liens

  	
   

  
	
  SECTION
  7.40

  	
  Concrete, Soil
  and Other Tests

  	
   

  
	
  SECTION
  7.41

  	
  ERISA

  	
   

  
	
  SECTION
  7.42

  	
  Name; Chief
  Executive Office

  	
   

  
	
  SECTION
  7.43

  	
  No Joint
  Assessment

  	
   

  
	
  SECTION
  7.44

  	
  Permitted
  Affiliate Contracts

  	
   

  
	
  SECTION
  7.45

  	
  Payment and
  Performance Bonds

  	
   

  
	
  SECTION
  7.46

  	
  NYTC Units
  Release Provisions

  	
   

  
	
  SECTION
  7.47

  	
  Security
  Personnel

  	
   

  
	
  SECTION
  7.48

  	
  Section 22
  Affidavit

  	
   

  
	
  SECTION
  7.49

  	
  Compliance with
  Condominium Documents

  	
   

  
	
  SECTION
  7.50

  	
  Redemption of FC
  Units

  	
   

  
	
  SECTION
  7.51

  	
  Title Insurance
  Proceeds

  	
   

  
	
  SECTION
  7.52

  	
  No Indebtedness

  	
   

  
	
  SECTION
  7.53

  	
  Equity
  Contribution

  	
   

  
	
  SECTION
  7.54

  	
  Borrower LCs

  	
   

  
	
  SECTION
  7.55

  	
  Additional
  Covenants Relating to Ground Lease

  	
   

  
	
  SECTION
  7.56

  	
  Deliveries

  	
   

  
	
  SECTION
  7.57

  	
  Pledged Accounts

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8 THE AGENT

  	
   

  
	
  SECTION
  8.01

  	
  Actions

  	
   

  
	
  SECTION
  8.02

  	
  Non-Liability of
  Agent and Lenders

  	
   

  
	
  SECTION
  8.03

  	
  Authorization
  and Action

  	
   

  
	
  SECTION
  8.04

  	
  Agent’s
  Reliance, Etc

  	
   

  
	
  SECTION
  8.05

  	
  Payments to Lenders

  	
   

  
	
  SECTION
  8.06

  	
  Construction
  Consultant

  	
   

  
	
  SECTION
  8.07

  	
  Actions of Agent
  Binding Upon Lenders

  	
   

  
	
  SECTION
  8.08

  	
  Initial Agent

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9 EVENTS OF DEFAULT

  	
   

  
	
  SECTION
  9.01

  	
  Events of
  Default

  	
   

  

 

iv

 

	
  ARTICLE 10 RIGHTS AND REMEDIES OF LENDERS

  	
   

  
	
  SECTION
  10.01

  	
  Remedies

  	
   

  
	
  SECTION
  10.02

  	
  Power of
  Attorney

  	
   

  
	
  SECTION
  10.03

  	
  Remedies
  Cumulative

  	
   

  
	
  SECTION
  10.04

  	
  Annulment of
  Defaults

  	
   

  
	
  SECTION
  10.05

  	
  Waivers

  	
   

  
	
  SECTION
  10.06

  	
  Course of
  Dealing, Etc.

  	
   

  
	
  SECTION
  10.07

  	
  Bankruptcy

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11 GENERAL CONDITIONS

  	
   

  
	
  SECTION
  11.01

  	
  Rights of Third
  Parties

  	
   

  
	
  SECTION
  11.02

  	
  Relationship

  	
   

  
	
  SECTION
  11.03

  	
  Evidence of
  Satisfaction of Conditions; Approval Standard

  	
   

  
	
  SECTION
  11.04

  	
  Notices

  	
   

  
	
  SECTION
  11.05

  	
  Assignment

  	
   

  
	
  SECTION
  11.06

  	
  Successors and
  Assigns Included in Parties

  	
   

  
	
  SECTION
  11.07

  	
  Headings

  	
   

  
	
  SECTION
  11.08

  	
  Invalid
  Provisions to Affect No Others

  	
   

  
	
  SECTION
  11.09

  	
  Interpretation

  	
   

  
	
  SECTION
  11.10

  	
  Computation of
  Time Periods

  	
   

  
	
  SECTION
  11.11

  	
  Governing Law

  	
   

  
	
  SECTION
  11.12

  	
  Consent to
  Jurisdiction

  	
   

  
	
  SECTION
  11.13

  	
  Amendments

  	
   

  
	
  SECTION
  11.14

  	
  Counterparts

  	
   

  
	
  SECTION
  11.15

  	
  Entire Agreement

  	
   

  
	
  SECTION
  11.16

  	
  Recourse

  	
   

  
	
  SECTION
  11.17

  	
  Statute of
  Limitations

  	
   

  
	
  SECTION
  11.18

  	
  Remedies of
  Borrower Entities

  	
   

  
	
  SECTION
  11.19

  	
  Time of the
  Essence

  	
   

  
	
  SECTION
  11.20

  	
  Survival

  	
   

  
	
  SECTION
  11.21

  	
  Usury

  	
   

  
	
  SECTION
  11.22

  	
  Successive
  Actions

  	
   

  
	
  SECTION
  11.23

  	
  Confidentiality

  	
   

  
	
  SECTION
  11.24

  	
  Reinstatement of
  Obligations

  	
   

  
	
  SECTION
  11.25

  	
  Facsimile
  Signatures

  	
   

  

 

v

 

EXHIBITS AND SCHEDULES

 

	
  Exhibit A

  	
   

  	
  The Land

  
	
  Exhibit B

  	
   

  	
  Permitted Exceptions

  
	
  Exhibit C

  	
   

  	
  Certificate of Non-Bank Status

  
	
  Exhibit D

  	
   

  	
  Form of Condominium Subordination Agreement

  
	
  Exhibit E

  	
   

  	
  Draw Request

  
	
  Exhibit F

  	
   

  	
  Description of Improvements

  
	
  Exhibit G

  	
   

  	
  Lien Law Affidavit

  
	
  Exhibit H

  	
   

  	
  Form of Non-Disturbance Agreement

  
	
  Exhibit I

  	
   

  	
  Architect’s Certificate

  
	
  Exhibit J

  	
   

  	
  General Contractor’s Certificate

  
	
  Exhibit K

  	
   

  	
  Form of Estoppel Certificate

  
	
  Exhibit L

  	
   

  	
  Form of Lien Waiver

  
	
  Exhibit M

  	
   

  	
  Form of Assignment of Interest Rate Cap

  
	
  Exhibit N

  	
   

  	
  Condominium Title Endorsement

  
	
  Exhibit O

  	
   

  	
  Title Company Assurance Letter

  
	
  Exhibit P

  	
   

  	
  Conditional Assignment of Declarant’s Rights

  
	
  Exhibit Q

  	
   

  	
  Conditional Resignation of Managers

  
	
  Exhibit R

  	
   

  	
  Form of Extension Loan Intercreditor Agreement

  
	
  Exhibit S

  	
   

  	
  Form of Security Deposit Accounts Agreement

  
	
  Exhibit T

  	
   

  	
  Form of Collection Accounts Agreement

  
	
   

  	
   

  	
   

  
	
  Schedule 1

  	
   

  	
  Required Equity Funds Allocation Schedule

  
	
  Schedule 2

  	
   

  	
  Interest Rate Cap Schedules

  
	
  Schedule 3

  	
   

  	
  Availability of Utilities

  
	
  Schedule 4

  	
   

  	
  Governmental Approvals and Third Party Approvals

  
	
  Schedule 5

  	
   

  	
  Leases

  

 

vi

 

BUILDING LOAN AGREEMENT

 

THIS BUILDING LOAN AGREEMENT (as the same may be
revised, restated, amended or modified from time to time, this “Agreement”) is made
and entered into as of this 25th day of June, 2004 by and among THE NEW YORK
TIMES BUILDING LLC (including any successors and assigns permitted in
accordance with the terms hereof, “Borrower”), a New York limited liability company,
with an address at One MetroTech Center North, Brooklyn, New York 11201,
NEW YORK STATE URBAN DEVELOPMENT CORPORATION d/b/a EMPIRE STATE DEVELOPMENT CORPORATION,
a corporate governmental agency of the State of New York constituting a
political subdivision and public benefit corporation, having an address at
633 Third Avenue, New York, New York 10017, as initial agent (“Initial Agent”) for
itself and for the benefit of the lenders as may exist from time to time (such
lenders collectively, including any successors and assigns, “Lenders” and each
individually a “Lender”)
and GMAC COMMERCIAL MORTGAGE CORPORATION, a California corporation, with an
office at 100 South Wacker Drive, Suite 400, Chicago, Illinois 60606 or
any successor thereto, as agent (including as successor to Initial Agent)
(including any of its successors and assigns as agent, “Agent”) for itself and on behalf of Lenders.

 

W  I  T  N  E
S  S  E  T  H:

 

In consideration of the mutual covenants and
agreements hereinafter set forth, each Lender severally agrees to lend its
ratable (as hereinafter defined) share of the Building Loan (as hereinafter
defined), and Borrower agrees to accept the Building Loan in accordance with
and subject to the terms and conditions hereinafter set forth.

 

ARTICLE 1

TERMS AND DEFINITIONS

 

In addition to the other terms hereinafter defined,
the following terms shall have the meanings set forth in this Article.  References to documents, exhibits, schedules
and other materials shall include those documents, exhibits, schedules and
materials as they may be revised, restated, amended, replaced and modified from
time to time in accordance with the terms of this Agreement or the other
Building Loan Documents.

 

“Acceleration Date” means a date (other than the Maturity
Date) on which the entire principal amount of the Building Loan and all accrued
and unpaid interest thereon shall be paid or be required to be paid in full,
whether by prepayment, acceleration or otherwise in accordance with the terms
of this Agreement or any of the other Building Loan Documents or by operation
of law.

 

“Acceptable Developer” means a Person whose principals
have developed or built (either for such Person, any Affiliate thereof or any
other Person), in the aggregate and without including the Project at least
5,000,000 rentable square feet of space, of which at least 2,000,000 rentable
square feet was “Class A” high-rise office 

 

 

space in
New York City.  From and after the
date that Substantial Completion has been achieved, the reference in the
preceding sentence to “developed or built” shall be deemed to be a reference to
“operated and leased.”

 

“Acceptable Rating” means a long-term debt rating of not
less than BBB+ (without a negative outlook) by S&P.

 

“Additional Interest Line Items” has the meaning given to
such term in Section 7.11 hereof.

 

“Administration Fee” has the meaning given to such term
in the Side Letter re:  Fees.

 

“Advance” or “Advances” means any disbursement of the proceeds of the
Building Loan by Lenders pursuant to the terms of this Agreement and any other
amounts that constitute an Advance in accordance with Section 3.05(e)
hereof.

 

“Affiliate” means, as to any Person, any other Person which
directly or indirectly Controls, is Under Common Control With, or is Controlled
by, such Person and, if such Person is an individual, any Immediate Family
Members of such individual, any trust whose principal beneficiary is such
individual or one or more Immediate Family Members of such individual, and any
Person who is controlled directly or indirectly by any such Immediate Family
Member or trust.

 

“Agent” has the meaning given to such term in the opening
paragraph of this Agreement.

 

“Agent Decisions” has the meaning given to such term in
Section 8.03(a) hereof.

 

“Agent’s Register” has the meaning given to such term in
Section 11.05(a) hereof.

 

“Appraisal” shall have the meaning set forth in
Section 4.01(m) hereof.

 

“Appraised Value” means the fair-market value, assuming
stabilization has been achieved, of the FC Units or the Mortgaged Property, as
applicable, as set forth in the Appraisal, any update thereto or any new
appraisal thereof.

 

“Approved Lease”  means an executed Permitted Lease which
is in full force and effect as of the relevant date and under which no material
default, default of which notice has been given, or event of default by either
party exists as of the relevant date.

 

“Architect’s Certificate” has the meaning given to such
term in Section 4.01(i)(12) hereof.

 

2

 

“Architect’s Contract” means that certain
Contract for Architectural Services, dated as of October 3, 2001 among FC
41st Street Associates, LLC (“FC 41st Street”), NYTC Member, Fox & Fowle
Architects, PC (“Lead Architect”)
and Renzo Piano Building Workshops, S.E.L.A.F.A., as deemed to have been
assigned by FC 41st Street and NYTC Member to Borrower pursuant to
Section 14.3 thereof.

 

“Assignment” has the meaning given to such term in
Section 11.05(a) hereof.

 

“Assignment and Acceptance Agreement”  has the meaning given to such term in
Section 11.05(a) hereof.

 

“Assignment of Contracts - Borrower” has the meaning
given to such term in Section 2.04(a) hereof.

 

“Assignment of Contracts - FC” has the meaning given
to such term in Section 2.04(b) hereof.

 

“Assignment of Contracts - NYTC” has the meaning
given to such term in Section 2.04(c) hereof.

 

“Assignment of Interest Rate Cap” has the meaning given
to such term in Section 4.02(e)(7) hereof.

 

“Assignments of Contracts” means, collectively, the
Assignment of Contracts - Borrower, the Assignment of Contracts - FC
and the Assignment of Contracts - NYTC.

 

“Bankruptcy Assignee” has the meaning given to such term
in Section 9.01(g)(i) hereof.

 

“Bankruptcy Code” means Title 11 of the United States
Code, as amended from time to time.

 

“Bankruptcy Law” has the meaning given to such term in
Section 9.01(g)(i) hereof.

 

“Base Rate” means a fluctuating interest rate per annum
in effect from time to time as announced in The Wall Street Journal as the
“prime rate.”  In the event that
(i) more than one such “prime rate” is published, the average of such
rates shall apply or (ii) no such “prime rate” is published, then the Base
Rate shall be determined from such comparable financial reporting company as
Agent shall reasonably determine.

 

“Borrower” has the meaning given to such term in the
opening paragraph of this Agreement.

 

 “Borrower Entities”
means Borrower, the Members, FC Guarantor and NYTC Guarantor, collectively.

 

3

 

“Borrower LC Deposit” has the meaning given to such term
in Section 7.54 hereof.

 

“Borrower LCs” means the letters of credit posted from
time to time by Borrower or any of its direct or indirect members in connection
with the Land Acquisition Agreement, as the same may be increased or decreased
in accordance with the Land Acquisition Agreement.

 

“Borrower’s Architects” means the architects under the
Architect’s Contract and any successor or assign thereof approved in accordance
with Section 7.13 hereof.

 

“Borrower’s Bank” means a bank selected by Borrower and
approved by Agent, such approval not to be unreasonably withheld.

 

“Breakage Costs” has the meaning given to such term in
Section 3.12(a) hereof.

 

“Breakeven Leasing” means a Pro Forma Debt Service
Coverage Ratio equal or greater than 1.00:1.00, provided that for purposes of
calculating Pro Forma Debt Service for purposes of this definition,
(x) subclause (a) of clause (z) of the definition of Pro Forma
Debt Service shall always be used and (y) all references in the definitions
of Pro Forma Operating Expenses and Pro Forma Operating Income to the Mortgaged
Property shall be deemed to be references to the Mortgaged Property other than
the NYTC Units.

 

“Brokerage Commissions” has the meaning given to such
term in Section 6.12 hereof.

 

“Budget” means either the FC Units Budget or the NYTC
Units Budget, each of which has been approved by Agent in the Disclosure Side
Letter and “Budgets”  means
both of the foregoing Budgets, collectively, as any of the same may be adjusted
in accordance with this Agreement.  The
Budgets contain both Building Loan Costs and Project Loan Costs.

 

“Building Loan” means the loan which is the subject of
this Agreement.

 

“Building Loan Amount” means $170,529,479.

 

“Building Loan Assignment of Leases” has the meaning
given to such term in Section 2.05 hereof.

 

“Building Loan Contingency” means, collectively, the
Building Loan Contingency (Hard Costs) and the Building Loan Contingency (Soft
Costs) as set forth in the applicable Budget.

 

“Building Loan Contingency (Hard Costs)” means the
respective amounts set forth in each Budget as a contingency reserve for Hard
Costs, which amounts 

 

4

 

shall, in the
aggregate, be no less than 4.205% of the Hard Costs (subject to reduction in
accordance with the terms hereof).

 

“Building Loan Contingency (Soft Costs)” means the
respective amounts set forth in each Budget as a contingency reserve for “soft
costs” of construction which are Costs of the Improvement, which amounts shall,
in the aggregate, together with the Project Loan Contingency (as defined in the
Project Loan Agreement) be no less than three percent (3%) of the sum of
(a) the “soft costs” of construction under the Building Loan that are
Costs of the Improvement and (b) the “soft costs” of construction under
the Project Loan (subject to reduction in accordance with the terms hereof).

 

“Building Loan Costs” means, without duplication,
(i) all costs and expenses of (a) achieving Final Completion of the
Project and Stabilized Occupancy, (b) satisfying the obligations of the
Borrower Entities to Agent and Lenders under the Loan Documents, (c) the
payment of interest on the Equity Contribution, to the extent the Extension
Loan is made, and the payment of interest on the Extension Loan, and
(d) Assignments of the Loans (to the extent Borrower is liable therefor
pursuant to Section 7.06 hereof) and (ii) all other actual or
anticipated non-construction costs payable through the maturity of the Building
Loan and necessary to achieve Final Completion of the Project and Stabilized
Occupancy (including, without limitation, from and after the date, if any, that
either option described in Section 3.19(a) hereof is exercised, that
portion of the Extension Fee relating to such option attributable to the
Building Loan), but only to the extent, in each of the foregoing
clauses (i) and (ii), such costs and expenses are Costs of the
Improvement.

 

“Building Loan Documents” means, collectively, this
Agreement, all documents referred to in Article 2 hereof and all other
agreements and documents executed and delivered or in the future executed and
delivered by any Borrower Entity to or for the benefit of Agent and Lenders in
connection with the Building Loan or in connection with the Building Loan and
the Project Loan (including each Draw Request and the Sworn Owner’s Statement
that is a part thereof and any Interest Rate Cap and Assignment of Interest
Rate Cap).  Notwithstanding the
foregoing, the NYTC Completion Guaranty, Extension Loan Intercreditor
Agreement, Extension Loan Documents and Equity Contribution Documents are not
Building Loan Documents.  A Building
Loan Document may, or may not, also be a Project Loan Document.

 

“Building Loan Indebtedness” means, “Indebtedness” as defined in the Building Loan
Mortgage.

 

“Building Loan Mortgage” has the meaning given to such
term in Section 2.02 hereof.

 

“Building Loan Notes” has the meaning given to such term
in Section 2.01 hereof.

 

“Building Loan Obligations” means “Obligations” as defined in the Building Loan
Mortgage.

 

5

 

“Business Day” means a day other than (i) Saturday,
(ii) Sunday, or (iii) a day on which commercial banks in the State of
New York are authorized or required by law to close.

 

“Certificate of Non-Bank Status” means a certificate
substantially in the form of Exhibit C attached hereto.

 

“Change in Control” shall mean the occurrence of any one
of the following events, voluntarily or involuntarily, singly or in conjunction
with another event, and whether in one or more transactions: (a) with
respect to a Person which is a corporation, (i) a single Person (or a
group of Persons acting in concert) directly or indirectly becomes the legal or
beneficial owner of 50% or more of the voting stock of such corporation,
(ii) a single Person (or a group of Persons acting in concert) through a
merger, consolidation or otherwise, directly or indirectly acquires the power
to direct (or cause the direction of) or approve the management or policies of
such corporation or (iii) unless the common stock of such corporation is
publicly traded on a recognized exchange, a majority of the members of the
board of directors of such corporation are no longer members of the board of
directors of such corporation; (b) with respect to a Person which is a
general or limited partnership or a limited liability company, (i) the
change, removal or resignation of a general partner, manager or managing
member, or joint venturer (other than a joint venturer which is solely a
limited partner or a non-managing member) or the transfer or pledge of all or any
portion of the direct or indirect ownership or economic interest of any general
partner, manager or managing member, or joint venturer (other than a joint
venturer which is solely a limited partner or a non-managing member),
(ii) a single Person (or a group of Persons acting in concert) directly or
indirectly becomes the legal or beneficial owner of 50% or more of the equity
interests in such partnership or limited liability company, as the case may be,
or a general partner, manager or managing member, or joint venturer thereof
which is a general partner, manager or managing member, or (iii) a single
Person (or a group of Persons acting in concert) through a merger,
consolidation or otherwise, directly or indirectly acquires the power to direct
(or cause the direction of) or approve the management or policies of such
partnership or company; (c) with respect to any other type of Person,
(i) a single Person (or a group of Persons acting in concert) directly or
indirectly becomes the legal or beneficial owner of 50% or more of the equity
interests in such Person or (ii) a single Person (or a group of Persons
acting in concert) directly or indirectly acquires the power to direct (or
cause the direction of) or approve the management or policies of such Person; or
(d) with respect to any Person, any transfer of legal or beneficial
ownership of 50% or more of the direct or indirect equity interests in such
Person.

 

“Change Order” has the meaning given to such term in
Section 7.11 hereof.

 

“Claim” has the meaning given to such term in
Section 7.29(a) hereof.

 

“Closing Date” means the date upon which this Agreement
is executed and delivered by Borrower, Initial Agent, for itself and for the
benefit of Lenders, and Agent, for itself and on behalf of Lenders.

 

6

 

“Code” means the Internal Revenue Code of 1986, as
amended from time to time, and the regulations promulgated and rulings issued
thereunder.

 

“Collection Accounts” has the meaning given to such term
in the Collection Accounts Agreement.

 

“Collection Accounts Agreement” has the meaning given to
such term in Section 7.57 hereof.

 

“Commitment Letter” means that certain letter issued by
Agent dated May 7, 2004 and accepted by Borrower as of such date.

 

“Common Elements Leasable Space” has the meaning given to
such term in the Condominium Documents.

 

“Completion Date”
has the meaning given to such term in the Operating Agreement.

 

“Completion Deposit” has the meaning given to such term
in Section 3.06 hereof.

 

“Condominium Act” means Article 9-B of the
New York Real Property Law (339-d et seq.) of the State of New York
and all modifications, supplements and replacements thereof and all regulations
with respect thereto, now or hereafter enacted or promulgated.

 

“Condominium By-Laws” means the By-Laws substantially in
the form attached as part of Exhibit E to the Operating Agreement, as the
same is to be modified and finalized in accordance with the First Amendment and
this Agreement.  From and after the
execution of the Condominium Declaration, “Condominium By-Laws” shall refer to the By-Laws attached
to such executed Condominium Declaration.

 

“Condominium Declaration” means that certain Declaration
of Leasehold Condominium (and all exhibits thereto) with respect to the
condominium regime governing the entire Premises in substantially the form
attached as Exhibit E to the Operating Agreement, as the same is to be
modified and finalized in accordance with the First Amendment and this
Agreement.  From and after the date on
which such form has been executed, “Condominium Declaration” shall refer to such executed
document.

 

“Condominium Documents” means the Condominium
Declaration, the Condominium By-Laws and the Condominium Floor Plans.

 

“Condominium Floor Plans” means the floor plans of the
Project certified by Borrower’s Architects and intended to be filed with the
Real Property Assessment Department and recorded in the Office of the City
Register of New York County simultaneously with the recordation of the
Condominium Declaration.  From and 

 

7

 

after the date on
which such floor plans are so filed and recorded, “Condominium Floor Plans” shall refer to such
recorded floor plans.

 

“Condominium Subordination Agreement” means a
subordination agreement executed by Agent, for itself and on behalf of Lenders,
substantially in the form of Exhibit D hereto.

 

“Construction Consultant” means Inspection &
Valuation International, Inc. or, with the prior consent of Borrower, such
consent not to be unreasonably withheld or delayed, such other replacement
consulting architect(s), engineer(s) or inspector(s) selected by Agent (with
the consent of the Majority Lenders).

 

“Construction Loan Disbursement Agreement” has the
meaning given to such term in Section 2.03 hereof.

 

“Construction Schedule” means the schedule, approved by
Agent in the Disclosure Side Letter, broken down by trade, showing the
estimated dates of commencement and completion of the Project as well as
various interim milestones.

 

“Control,” “Controlled by” and “Under Common Control With” means the possession,
directly or indirectly, of the power to direct or cause the direction of
management or policies of the Person in question (whether through ownership of
securities or partnership or other ownership interests, by contract or
otherwise), provided that, in any event, any Person (i) which owns
directly or indirectly twenty percent (20%) or more of the securities having
ordinary voting power for the election of directors or other governing body of
a corporation or twenty percent (20%) or more of the partnership or other ownership
interests of any other Person or (ii) which is a general partner, manager
or managing member, director, officer or trustee of a corporation or any other
Person, shall be deemed to control such corporation or other Person.

 

“Core and Shell”
has the meaning given to such term in the Architect’s Contract.

 

“Core and Shell
Completion” means the substantial completion of the core
and shell (including, without limitation, all of the elements that comprise
Core and Shell) of the Project in substantial accordance with the Plans and
Specifications, as reasonably determined by Agent and Construction Consultant.

 

“Cost Allocation Methodology”  means, with respect to allocating costs,
Project Loan Costs and Building Loan Costs as between the FC Units and the FC
Units Budget, on the one hand, and the NYTC Units and the NYTC Units Budget, on
the other hand, the “Allocation Methodology” as defined in the Operating Agreement.

 

“Costs of the Improvement” means those items defined as
cost of improvement under Section 2(5) of the Lien Law.

 

8

 

“Default” means any event which but for the passage of
time or giving of notice or both, would constitute an Event of Default.

 

“Default Rate” means a rate per annum equal to the lesser
of (i) the Interest Rate plus five hundred basis points (5.00%) per annum,
and (ii) the Maximum Rate.

 

“Defaulting Lender” has the meaning given to such term in
Section 5.02(c) hereof.

 

“Deficiencies” has the meaning given to such term in
Section 5.02(c) hereof.

 

“Developer” means Forest City Ratner Companies.

 

“Development Agreement-ING” means that certain
Development Agreement, dated as of December 12, 2001 among FC Member, Developer
and ING Member.

 

“Development Agreement-NYTC” means that certain
Development Agreement, dated as of December 12, 2001, among Borrower, NYTC
Member, FC Member and Developer.

 

“Development Agreements” means, collectively, Development
Agreement-NYTC and Development Agreement-ING.

 

“Development Cost” means the $1.6 million Development
Distribution (as defined in the Development Agreement ING), which Development
Distribution is shown in the FC Units Budget as the $1.6 million “Development
Costs” line item.

 

“Development Cost Line Item” means the line item in the
FC Units Budget containing the Development Cost.

 

“Disbursement Agent” has the meaning given to such term
in the Construction Loan Disbursement Agreement.

 

“Disbursement Schedule” means the schedule approved by
Agent in the Disclosure Side Letter of the amounts of Advances anticipated to
be requisitioned by Borrower each month during the term of the Building Loan,
indicating the timing of disbursements anticipated with respect to each Budget.

 

“Disclosure Side Letter” has the meaning given to such
term in Section 2.08 hereof.

 

“Draw Request” means, with respect to each Advance and
each “Advance” (as defined in the Project Loan Agreement), Borrower’s request
for such Advance and such “Advance” substantially in the form attached hereto
as Exhibit E, fully
completed and certified by Borrower.

 

9

 

“DUO Declaration” means the Site 8 South Declaration of
Design, Use and Operation by ESDC and Ground Lessor, dated as of December 12,
2001 and recorded in the Office of the City Register of New York County on
October 24, 2003 as CRFN# 2003000433121.

 

“Eligible Assignee” means any of the following entities
which has, as of the later to occur of (x) the day that Agent makes a firm
proposal on or after the date hereof to such entity for such entity to become a
Lender hereunder and (y) ninety (90) days prior to the date that such
entity makes a binding acceptance of such offer, (i) an Issuer Financial
Strength Rating from S&P of A - or better or, if not rated by S&P, a
Senior Unsecured Debt Rating or Issuer Rating from Moody’s of A3 or better or
(in the case of clauses (a), (b) and (c) of this definition) (ii) at
least $10,000,000,000.00 in assets and at least $1,000,000,000.00 in capital
surplus:  (a) a commercial bank or
trust company organized under the laws of the United States or any state
thereof; (b) a savings and loan association or savings bank organized
under the laws of the United States or any state thereof; (c) a commercial
bank organized under the laws of any other country or a political subdivision
thereof (a “Non-US Lender”);
provided that in the case of clause (c) such bank is organized under the
laws of a country that is a member of the Organization for Economic Cooperation
and Development or a political subdivision of such country; (d) any other
entity which is an “accredited investor” (as defined in Regulation D under
the Securities Act) which extends credit or buys loans as one of its
businesses, including, without limitation, insurance companies, mutual funds,
real estate investment trusts and pension funds; and (e) any Lender, any
Affiliate of any Lender and any First Offer Lender (as defined in the Side
Letter re: Fees).  Notwithstanding the
foregoing, (1) no real estate “opportunity funds”, hedge funds or lease
financing companies shall be Eligible Assignees and (2) any Person that
qualifies as an Eligible Assignee but for clauses (i) and (ii) in
this definition shall (subject to the foregoing clause (1)) nevertheless
be an Eligible Assignee if such Person takes by assignment a fully-funded
interest in the Loans.

 

“Employee Benefit Plan” means any pension plan defined in
Section 3(3) of ERISA or any “plan” described in Section 4975(e) of the Code,
other than a plan exempt from coverage under ERISA and the provisions of
Section 4975 of the Code.

 

“Equity Contribution” means the equity contributions to
be made by NYTC Member to Borrower pursuant to the First Amendment to the
Operating Agreement of Borrower dated as of even date herewith and secured by
FC Member’s interest in Borrower pursuant to the Equity Contribution Pledge
Agreement and bearing interest at the rate set forth therein.

 

“Equity
Contribution Documents”  means the Operating
Agreement, the Equity Contribution Pledge Agreement and the other documents
evidencing or securing the Equity Contribution.

 

“Equity Contribution Pledge Agreement” means the Pledge
and Assignment Agreement entered into by FC Member, pledging its membership
interest in Borrower to NYTC Member, dated as of December 12, 2001, as amended
by that certain 

 

10

 

First Amendment to
Pledge and Assignment Agreement by FC Member in favor of NYTC Member, dated as
of even date herewith, as the same may be further amended, modified or
supplemented in accordance with both the terms hereof and the terms thereof.

 

“Equity Infusion” has the meaning given to such term in
Section 4.04 hereof.

 

“Equity Infusion Date” has the meaning given to such term
in Section 4.04 hereof.

 

“ERISA” means the Employee Retirement Income Security Act
of 1974, as amended, and the regulations and rulings issued thereunder.

 

“ERISA Affiliate” means each “person” (as defined in
Section 3(9) of ERISA) which together with a Borrower Entity would be
considered a “single employer” within the meaning of Section 414(b), (c),
(m) or (o) of the Code.

 

“ESDC” means the New York State Urban Development
Corporation, doing business as the Empire State Development Corporation.

 

“Event of Default” has the meaning given to such term in
Section 9.01 hereof.

 

“Exchange Act” means the Securities and Exchange Act of
1934, as amended from time to time, and any successor statute.

 

“Extension Fee” shall mean a fee equal to three-eighths
of one percent (0.375%) of the Remaining Loan Amount.  Lenders shall be entitled to participate in the Extension Fee to
the extent set forth in the applicable Assignment and Acceptance Agreement.

 

“Extension Loan” means the loan contemplated under the
Operating Agreement to be made by Extension Loan Lender to FC Member and
evidenced by the Extension Loan Documents.

 

“Extension Loan Documents” means the documents evidencing
or securing the Extension Loan and attached as Exhibits Q and S to the
Operating Agreement.

 

“Extension Loan
Conditions” means the following five (5) conditions:  (a) FC Member shall have complied with its
obligations under the first two sentences of Section 6.03 of the Operating
Agreement, as reasonably determined by Agent, (b) Core and Shell Completion
shall have been achieved, (c) the Condominium Declaration and Condominium
By-Laws shall have been finalized in accordance with the Loan Documents and
approved by Agent and each of the Members, (d) the conditions set forth in
clauses (1), (3) and (5) of Section 7.46(a) hereof shall have been
satisfied and (e) FC

 

11

 

Member shall have
made the “True-Up Payment” described in Section 3.01(c) of the Operating
Agreement.

 

“Extension Loan Intercreditor Agreement” has the meaning
given to such term in Section 7.46(a)(11) hereof.

 

“Extension Loan Lender” means NYTC Guarantor, any direct
or indirect wholly-owned subsidiary thereof or, with the consent of the
Majority Lenders, any other Person.

 

“Extension Option Exercise Date” has the meaning given to
such term in Section 3.19(a).

 

“FC 41st Street” has the meaning given to such term in
the definition of Architect’s Contract.

 

“FC Completion Guaranty” has the meaning set forth in
Section 2.06(b) hereof.

 

“FC Guarantor” means Forest City Enterprises, Inc., an
Ohio corporation and its permitted successors in accordance with the terms
hereof.

 

“FC Member” means FC Lion LLC, a New York limited
liability company and its permitted successors in accordance with the terms
hereof.

 

“FC Non-Recourse Carveouts Guaranty” has the meaning set
forth in Section 2.06(a) hereof.

 

“FC Office Unit” means, prior to the recordation of the
Condominium Documents, the portion of the Project designated as “FC Office” on
the Plans and Specifications, together with its undivided proportionate share
of the “Common Areas” appurtenant thereto as shown on the Plans and
Specifications and, after the recordation of the Condominium Documents, the “FC
Collective Unit” (as defined in the Condominium Documents), together with its
proportionate share of the “Common Elements” (as defined in the Condominium
Documents) as more particularly shown on the Condominium Floor Plans.

 

“FC Operating Agreement” means that certain Operating
Agreement of FC Member dated as of December 12, 2001 by ING Member and FC 41st
Street, as modified by that certain side letter between ING Member and FC 41st
Street, dated April 8, 2004.

 

“FC Retail Unit” means, prior to the recordation of the
Condominium Documents, the portion of the Project designated as “FC Retail” on
the Plans and Specifications, together with its undivided proportionate share
of the “Common Areas” appurtenant thereto as shown on the Plans and
Specifications and, after the recordation of the Condominium Documents, the “Retail
Unit” (as defined in the Condominium 

12

 

Documents),
together with its proportionate share of the “Common Elements” (as defined in
the Condominium Documents) as more particularly shown on the Condominium Floor
Plans.

 

“FC Units” means the FC Office Unit and the FC Retail
Unit collectively.

 

“FC Units Budget” means the budget setting forth the
total estimated Building Loan Costs and Project Loan Costs allocable to the FC
Units and approved by Agent in the Disclosure Side Letter.  For all purposes hereunder, interest on the
Equity Contribution is allocable to the FC Units.

 

“Final Completion”  shall mean, with respect to any Unit or the Project, as
the case may be, the occurrence of all of the following applicable events to
the satisfaction of Agent:  (a) with
respect to any of the Units, Substantial Completion of such Unit, and with
respect to the Project, Substantial Completion of the Project; (b) the
construction, furnishing and development of such Unit (or the Project)
substantially in accordance with the Plans and Specifications and in accordance
with the Loan Agreements and the Public Project Agreements, free and clear of
any and all liens and claims of any Persons furnishing material, labor or
services in connection with the design, furnishing, construction or development
of such Unit (or the Project); (c) the payment in full of any and all
fees, charges, costs and expenses payable by Borrower to contractors,
consultants, materialmen, laborers, suppliers and any other Person engaged in
connection with the design, furnishing, construction or development of such
Unit (or the Project) so as to complete such Unit (or the Project) in
accordance with clause (b) above, and the payment of all permitting fees,
licensing fees and other governmental charges payable in connection therewith;
(d) with respect to each Unit, the issuance of those certificates of
occupancy referred to in clauses (c) and (d) of the definition of
Substantial Completion below and the issuance of all other governmental licenses,
permits, sign-offs and approvals required to have been obtained for the lawful
construction of such Unit substantially in accordance with the Plans and
Specifications and necessary for its lawful use; (e) with respect to any
Unit, the furnishing of such Unit with all necessary furniture, fixtures and
equipment (including “tenant improvement” work) to the extent provided for in
the Plans and Specifications or as contemplated by any Budget; (f) with
respect to any Unit or the Project, the delivery of final, unconditional lien
waivers from all Lien Waiver Parties in form reasonably acceptable to Agent;
and (g) with respect to the Project, delivery to Agent of two (2) sets of
final “as-built” Plans and Specifications signed and sealed by Borrower’s
Architects.

 

“First Amendment” has the meaning given to such term in
the definition of “Operating Agreement.”

 

“First Extended Maturity Date” has the meaning given to
such term in Section 3.19(a) hereof.

 

“Fiscal Year” shall mean the period commencing on the
Closing Date and ending on and including December 31 of the calendar year
in which the Closing Date 

 

13

 

occurs and
thereafter each twelve-month period commencing on January 1 and ending on
December 31 during each year of the term of the Building Loan.

 

“Fixed Substantial Completion Date” has the meaning given
to such term in the Ground Lease.

 

“Force  Majeure Event” means any of the
following events, but only to the extent beyond Borrower’s and the General
Contractor’s reasonable control: 
casualty (including, without limitation, fire); war; invasion;
rebellion; revolution; insurrection; riots; an act of government or a
quasi-governmental authority; changes in Legal Requirements enacted after the
date hereof; earthquakes; hurricanes; tidal waves; inclement weather or any act
of God or operation of forces of nature which reasonable foresight and ability
on the part of Borrower or the General Contractor could not reasonably prevent
or provide against; strikes, lockouts or other employee disturbances or labor
disputes (except to the extent such strikes, lockouts or other employee
disturbances or labor disputes take place at the Premises only or at the
Premises and other projects or properties being developed or constructed by
Affiliates of FC Guarantor or General Contractor only); and all other events
beyond Borrower’s and the General Contractor’s reasonable control.  Notwithstanding the foregoing, the following
events shall in all circumstances not be Force Majeure Events:  economic conditions; recessions; the effects
of competition; breaches and all other acts or omissions of the General
Contractor, any contractor or subcontractor of any tier or any architect,
consultant or other party engaged by Borrower, any other Borrower Entity or the
General Contractor; any event with respect to which the General Contractor is
not entitled to a time extension under the Guaranteed Maximum Price Contract;
and shortages in, the unavailability of, or unusual delays in the delivery of,
materials, supplies, labor, equipment or systems (except to the extent caused
by another Force Majeure Event).

 

“Force Majeure Extension Option Exercise Date” has the
meaning given to such term in Section 3.19(b) hereof.

 

“Force Majeure Extension Period” has the meaning given to
such term in Section 3.19(b) hereof.

 

“Future Advance Interest Rate Caps” has the meaning given
to such term in Section 7.20 hereof.

 

“General Contractor” means AMEC Construction Management
Inc., a Delaware corporation, and any successor thereto approved in accordance
with Section 7.01 hereof.

 

“General Contractor’s Certificate” has the meaning given
to such term in Section 4.01(i)(12) hereof.

 

“GMACCM” has the meaning given to such term in the
definition of “Syndication
Condition”.

 

14

 

“GMP Guarantor” means AMEC p.l.c., a public limited company
organized under the laws of England and any successor thereto approved in
accordance with Section 7.01 hereof.

 

“GMP Guaranty” has the meaning given to such term in
Section 4.01(d) hereof.

 

“Governmental Approvals” means all approvals, consents,
waivers, orders, acknowledgments, authorizations, permits and licenses required
under applicable Legal Requirements to be obtained from any Governmental
Authority.

 

“Governmental Authority” means any government (or any
political subdivisions thereof), court, agency, authority, board (including,
without limitation, any environmental protection, planning or zoning board),
bureau, commission, department, office or instrumentality of any nature
whatsoever of any governmental or quasi-governmental unit having jurisdiction
over any Borrower Entity, the Mortgaged Property or any part thereof (or the
construction, development, use, occupancy, management, ownership or operation
of the Mortgaged Property or any part thereof) or Agent or any Lender, as
applicable.

 

“Ground Lease” means the Agreement of Lease between
Borrower and Ground Lessor, dated as of December 12, 2001, a memorandum of
which was recorded in the office of the City Register of New York County
on October 24, 2003 as CRFN # 20030004 33122, as modified by (a)
that certain letter agreement between Borrower and Ground Lessor, dated as of
April 8, 2004 and (b) regarding which Borrower and Ground Lessor, in accordance
with the Tri-Party Agreement, have agreed to modify their agreements and
rights.

 

“Ground Lessor” means 42nd St. Development Project, Inc.

 

“Guaranteed Maximum Price Contract” means that certain
Construction Management Agreement, dated the 22nd day of January, 2004 between
Borrower and General Contractor, as modified by that certain General Contractor’s
Consent to Assignment of Contractor’s Agreement among Borrower, General
Contractor and Agent of even date herewith.

 

“Guaranties” means, collectively, the documents referred
to in Section 2.06 hereof.

 

“Guarantors” means FC Guarantor and NYTC Guarantor,
collectively.

 

“Hard Cost Contracts” means the Guaranteed Maximum Price
Contract and all other contracts and subcontracts (whether direct or indirect)
that cover Hard Costs.

 

“Hard Costs” means the direct costs and expenses of
goods, materials or labor incurred in connection with the construction of the
Project substantially in 

 

15

 

accordance with
the Plans and Specifications, including, without limitation, all amounts
payable under the Guaranteed Maximum Price Contract, including fees.  To avoid confusion, the Budgets show which
categories of Building Loan Costs are Hard Costs and which are soft costs.  No Project Loan Cost is a Hard Cost.

 

“Immediate Family Members” of a Person means the spouse,
parents and any direct lineal descendants (including adoptees) of such Person.

 

“Improvements” means all the buildings, structures,
fixtures and improvements described in Exhibit F attached hereto and more particularly set
forth in the Plans and Specifications, and all other buildings, structures,
fixtures and improvements now or hereafter located or placed on the Land.

 

“In Balance” has the meaning given to such term in
Section 3.06 hereof.

 

“Indebtedness” means, collectively, the Building Loan
Indebtedness and the Project Loan Indebtedness.

 

“Indemnified Parties” means Initial Agent, Agent, any
Lender, any Person who is or will have been involved in the servicing of the
Building Loan, any Person in whose name the encumbrances created by the
Building Loan Mortgage is or will have been recorded, any Person who may hold
or acquire or has held a full or partial interest in the Building Loan
(including, but not limited to any participants in the Building Loan and any
investors in a Securitization, as well as custodians, trustees and other
fiduciaries who hold or have held a full or partial interest in the Building
Loan for the benefit of third parties), as well as the respective directors,
officers, shareholders, members, partners, employees, agents, servants,
representatives, contractors, subcontractors, affiliates, subsidiaries,
participants, successors and assigns of any and all of the foregoing
(including, but not limited to, any other Person who holds or acquires or has
held a participation or other full or partial interest in the Building Loan or
the Mortgaged Property, and any successors by merger, consolidation or
acquisition of all or a substantial portion of Agent’s or any Lender’s assets
and business).

 

“Information” has the meaning given to such term in
Section 11.23 hereof.

 

“ING” means ING Real Estate Development Holding U.S. Inc.

 

“ING Member” means Ingredus Site 8 South LLC, a
Delaware limited liability company.

 

“Initial Advance Interest Rate Cap” has the meaning given
to such term in Section 4.02(e)(7) hereof.

 

“Initial Agent” has the meaning given to such term in the
opening paragraph of this Agreement.

 

16

 

“Initial Construction Advance” has the meaning given to
such term in Section 4.02 hereof.

 

“Initial Interest Period” has the meaning given to such
term in the definition of Interest Period.

 

“Initial Required Equity Funds” means, subject to Section
3.08(b) hereof, $417,654,796, which amount represents the sum of
(a) $87,547,843 contributed by Borrower on behalf of FC Member,
(b) $119,498,394 contributed by Borrower on behalf of NYTC Member, and (c)
the Equity Contribution of $210,608,559 which sum represents the initial
estimate of the amount by which (i) the amount needed to cover all
Building Loan Costs and Project Loan Costs reasonably anticipated to be
incurred with respect to the Project, as shown by the Budgets approved by Agent
as of the Closing Date, exceeds (ii) the Loan Amount.

 

“Intended Advance Date” means the Requested Advance Date
or, if not all of the conditions precedent to such Advance have been satisfied
prior to the Requested Advance Date, the first Business Day following the date
on which all conditions to such Advance hereunder have been satisfied.

 

“Interest Period” means, during any period of time in
which the LIBOR Rate is in effect, the period commencing, in the case of the
first Interest Period, on the date hereof and ending on the last day of June,
2004 (the “Initial Interest
Period”), and with respect to subsequent Interest Periods,
commencing, in each case, on the first day (such date, the “Start Day”) of the
immediately succeeding calendar month, and ending, in each case, on the last
day of the month in which the Start Day occurs.

 

“Interest Rate” means, subject to Section 3.14
hereof, the LIBOR Rate plus the Spread.

 

“Interest Rate Caps” means the Initial Advance Interest
Rate Cap and the Future Advance Interest Rate Caps, and “Interest Rate Cap” means any of
the foregoing.

 

“Involuntary Bankruptcy” has the meaning given to such
term in Section 9.01(g)(i).

 

“Knowledge” or “Knowledge of Borrower” means the actual knowledge of any
of the following persons (unless and until any such Person has no involvement
with the Project) or any person replacing any such person:  Bruce Ratner, Andrew Silberfein, David
Berliner, Chris Clayton and Susan Elman.

 

“Land” means the land more particularly described on Exhibit A
attached hereto and includes all rights appurtenant thereto, including, without
limitation, any air or development rights acquired by Borrower.

 

17

 

“Land Acquisition Agreement” means the Site 8 South
Land Acquisition and Development Agreement among Borrower, Ground Lessor and
ESDC, dated as of December 12, 2001.

 

“Late Charge” has the meaning given to such term in
Section 3.11 hereof.

 

“Lead Architect” has the meaning given to such term in
the definition of Architect’s Contract
and any successor Borrower’s Architect in accordance with Section 7.13
hereof.

 

“Leases” means “Leases” as defined in the Building Loan
Mortgage, provided that in no event shall “Leases” as used in this Agreement include the Ground
Lease or the Severance Subleases.

 

“Leasing Agent Agreement” means any one or more
agreements entered into by Borrower, any Member or any Affiliate of Borrower
wherein Borrower, such Member or such Affiliate engages any Person to assist in
the leasing of any of the Units and which is in effect on or after the date
hereof.

 

“Legal Requirements” shall mean all federal, state,
county, municipal and other governmental statutes, laws, rules, orders,
regulations, ordinances, judgments, decrees and injunctions of Governmental
Authorities, whether now or hereafter enacted and in force (including, without
limitation, any environmental laws and building, use, zoning and land use laws
and regulations), and all permits, licenses and authorizations and regulations
relating thereto, and all covenants, agreements, restrictions and encumbrances
contained in any instruments with Governmental Authorities (other than those
contained in the Ground Lease or the Land Acquisition Agreement), either of
record or known to the applicable Person, at any time in force applicable to
Agent, any Lender, any Borrower Entity, the Mortgaged Property or any part
thereof (including any which may (i) require repairs, modifications or
alterations in or to the Mortgaged Property or any part thereof, or (ii) in
any way limit the use and enjoyment thereof).

 

“Lender” has the meaning given to such term in the
opening paragraph of this Agreement, subject to Sections 3.16(c) and 11.05(a)
hereof.

 

“LIBOR Rate” means, as determined by Agent, the average
of London Interbank Offered Rates (in U.S. dollar deposits), rounded up to the
nearest 1/10,000th of one percent, for a term equal to the applicable calendar
month; provided, however, that if such month has 28, 29 or 31 days, the Libor
Rate shall be calculated assuming such month has thirty (30) days.  Agent will obtain the LIBOR Rate from
Bloomberg (British Banker’s Association Rate) as of the close of business
announced on the second immediately preceding Business Day prior to the Start
Day.  If Bloomberg ceases publication or
ceases to publish such LIBOR Rate, Agent shall select a comparable publication
to determine the LIBOR Rate.  The LIBOR
Rate may or may not be the lowest rate based upon the market for U.S. dollar
deposits in the London Interbank Eurodollar Market at which Agent or any Lender
prices loans on the date on which the LIBOR Rate is determined by Agent as set
forth in this definition.  The rules set
forth in 

 

18

 

Section 4.12
(entitled “Business Day Convention”) of the 2000 International Swap Dealers Association,
Inc.  Definitions shall apply with
respect to the calculation of the LIBOR Rate. 
Agent and Borrower acknowledge and confirm that Bloomberg shows thirty
(30) day LIBOR Rates as one-month LIBOR Rates.

 

“Lien” means any mortgage, deed of trust, pledge,
assignment of leases and rents, security interest, encumbrance, restriction,
lien or charge of any kind including, without limitation, any conditional sale
or other title retention agreement or any lease in the nature thereof, or the
filing of, or any agreement to give, any financing statement under the Uniform
Commercial Code of any jurisdiction.

 

“Lien Law” means the Lien Law of the State of
New York.

 

“Lien Law Affidavit” means the affidavit attached hereto
as Exhibit G, made
in compliance with Section 22 of the Lien Law.

 

“Lien Waiver Parties”  means, collectively, (a) General Contractor;
(b) all other Major Contractors; (c) all Major Subcontractors and all
other Trade Contractors (as defined in the Guaranteed Maximum Price Contract)
required by Borrower to deliver lien waivers under the Guaranteed Maximum Price
Contract; (d) Borrower’s Architects; and (e) any Person not covered
by the foregoing clauses who has performed services pursuant to a direct
contract with Borrower or the General Contractor for the Project and who is
reasonably expected to receive payments for such services in excess of
$100,000, other than any expediter, any consultant preparing environmental
reports with respect to the Mortgaged Property, and any Person providing (or
providing services relating to) insurance on the Mortgaged Property.

 

“Loan Agreements” means, collectively, this Agreement and
the Project Loan Agreement.

 

“Loan Amount”  means the sum of the Building Loan Amount
and the Project Loan Amount.

 

“Loan Documents” means, collectively, the Building Loan
Documents and the Project Loan Documents.

 

“Loans” means the Building Loan and the Project Loan.

 

“Losses” has the meaning given to such term in
Section 7.29(a) hereof.

 

“Major Contractor” means the General Contractor and any
other contractor hired by any Borrower Entity (and any Affiliates thereof) to
supply labor, goods, materials or services which are Building Loan Costs in
connection with the Project, where, at the time of determination, the aggregate
contract price for such labor, goods, materials or services (including fees)
equals or exceeds $1,000,000, whether pursuant to one contract or agreement or
multiple contracts or agreements, after taking into account all Change Orders.

 

19

 

“Major Decision” shall mean any decision by the Majority
Lenders (other than any Super-Major Decision) pertaining to (a) a material
modification or amendment of the Building Loan Documents; (b) the exercise
of any material remedies by Agent under the Building Loan Documents during the
continuance of an Event of Default; (c) the approval of any Lease or any
matter with respect to any Lease as to which Agent’s approval is required
hereunder, but only if such Lease covers more than three full floors (or more
than 75,000 rentable square feet) of the Project (a “Major Lease”); (d) the approval of any
Managing Agent Agreement where the managing agent is not an Affiliate of FC
Guarantor; (e) the disposition of the Mortgaged Property after it is
acquired by Agent on behalf of Lenders; and (f) any other decision in the
Building Loan Documents requiring the approval of Majority Lenders.

 

“Major Lease” has the meaning given to such term in the
definition of Major Decision.

 

“Major Subcontractor” means any subcontractor (or any
direct or indirect subcontractor thereof) who is supplying labor, goods,
materials or services which are Building Loan Costs in connection with the
Project, where, at the time of determination, the aggregate contract price for
such labor, goods, materials or services (including fees) equals or exceeds
$500,000, whether pursuant to one contract or agreement or multiple contracts
or agreements, after taking into account all Change Orders.

 

“Major Subcontracts” has the meaning given to such term
in the definition of Material Contracts.

 

“Majority Lenders” means, at any time, Lenders whose
commitments total more than fifty percent (50%) of the Loan Amount; provided,
however, that if at any time a single Lender has a commitment of more than
fifty percent (50%) of the Loan Amount and there shall be more than one Lender,
“Majority Lenders”
shall mean any two (2) Lenders (who are not Affiliates of each other)
whose commitments exceed fifty percent (50%) of the Loan Amount.  At any time that a Lender is a Defaulting
Lender, then (x) such Lender shall not be deemed a Lender for purposes of
this definition and (y) such Lender’s ratable share of the Loan Amount
shall, for purposes of this definition, be subtracted from the Loan Amount.

 

“Managing Agent Agreement” means any agreement entered
into by Borrower or any Member where Borrower or such Member engages any Person
to assist in the management of the Property or any portion thereof.

 

“Material Adverse Effect” means any event or condition
that has a material adverse effect upon (i) the ability of (as of the
Closing Date) any Borrower Entity and (after the Closing Date) Borrower and
each Member to pay all of its liabilities or to perform all of its obligations
in the manner and within the time periods provided under the Building Loan
Documents, (ii) the enforceability of any provision of any Building Loan
Document against any Borrower Entity, (iii) the perfection or priority of
any Lien created under any Building Loan Document, (iv) the value of any
collateral granted by any Borrower Entity to Agent for the benefit of Agent and
Lenders in 

 

20

 

connection with
the Building Loan or (v) the rights and remedies of Agent under the
Building Loan Documents.

 

“Material Contracts” means (a) the GMP Guaranty,
(b) all contracts with Major Contractors and all contracts with Major
Subcontractors (“Major Subcontracts”),
(c) any Leasing Agent Agreement, (d) any Managing Agent Agreement,
(e) the Architect’s Contract and any other material agreement entered into
by any one or more of Borrower and the Members with any architect or engineer
relating to the Project, (f) any Interest Rate Cap, (g) the Ground
Lease and each of the Severance Subleases, (h) the Land Acquisition
Agreement, (i) the Subway Agreement, (j) the Site 8 Project Agreement,
and (k) any other contract of any kind or type whatsoever (whether oral or
written, formal or informal) entered into by any Borrower Entity affecting in
any material respect the construction or value of the Project other than any
Lease and the Development Agreements.

 

“Maturity Date” means the earlier to occur of
(i) the Original Maturity Date or, subject to the penultimate sentence of
Section 3.19(a) and the last sentence of Section 3.19(b) hereof, the
First Extended Maturity Date or the Second Extended Maturity Date, as applicable)
and (ii) the Acceleration Date.

 

“Maximum Amount” means the Maximum Amount – NYTC or the
Maximum Amount – FC, as applicable.

 

“Maximum Amount–FC” means, as of the date of the Initial
Construction Advance (and without giving effect to such Advance or the “Initial
Construction Advance” as defined in the Project Loan Agreement), the Loan
Amount minus the Maximum Amount – NYTC, and thereafter such amount less all
Advances hereunder and all “Advances” (as defined in the Project Loan
Agreement) under the Project Loan Agreement made on or prior to the date in
question for costs shown in the FC Units Budget.

 

“Maximum Amount–NYTC” means, subject to
Section 3.08(b), as of the date of the Initial Construction Advance (and
without giving effect to such Advance or the “Initial Construction Advance” as
defined in the Project Loan Agreement), the principal amount of the Equity
Contribution (taking into account any Equity Contribution made on such date),
and thereafter such amount less all Advances made hereunder and all “Advances”
(as defined in the Project Loan Agreement) under the Project Loan Agreement on
or prior to the date in question for costs shown in the NYTC Units Budget.

 

“Maximum Rate” means the maximum interest rate allowed by
applicable law in effect with respect to the Building Loan on the date for
which a determination of interest accrued hereunder is made and after taking
into account all fees, payments and other charges which are, under applicable
law, characterized as interest.

 

“Measuring Date” has the meaning given to such term in
Section 3.19(a) hereof.

 

21

 

“Members” means FC Member and NYTC Member.

 

“Moody’s” means Moody’s Investors Services, Inc., or any
successor thereof (or if Moody’s is no longer in the business of rating public
companies, any other nationally recognized rating agency selected by Agent).

 

“Mortgaged Property” has the meaning given to such term
in the Building Loan Mortgage.

 

“Net Award or Proceeds” has the collective meaning given
to such term in the Building Loan Mortgage.

 

“Net Proceeds” has the collective meaning given to such
term in the Building Loan Mortgage.

 

“News Outlets” has the meaning given to such term in
Section 11.23 hereof.

 

“No Strikes Agreement”  has the meaning given to such term in
Section 4.01(i)(6) hereof.

 

“Non-Disturbance Agreement” means a non-disturbance,
subordination and attornment agreement substantially in the form of Exhibit H  hereto.

 

“Non-US Lender” has the meaning given to such term in the
definition of “Eligible Assignee.”

 

“Notice of Assignment” means the notice by Borrower made
in compliance with Section 15 of the Lien Law.

 

“Notice of Lending” means the notice by Borrower made in
compliance with Section 73 of the Lien Law.

 

“Noticed Default” means (a) a Default with respect
to which Agent has given Borrower notice that such Default has occurred or
(b) the occurrence of an event listed in Section 9.01 hereof which
does not require a notice from Lender to become an Event of Default.

 

“NYTC Completion Guaranty” has the meaning set forth in
Section 2.06(d) hereof.

 

“NYTC Form Sublease” has the meaning given to such term
in Section 7.14(b) hereof.

 

“NYTC Guarantor” means the New York Times Company, a
New York corporation, and its permitted successors in accordance with the
terms hereof.

 

22

 

“NYTC Member” means NYTC Real Estate Company LLC, a
New York limited liability company and its permitted successors in
accordance with the terms hereof.

 

“NYTC Non-Recourse Carveouts Guaranty” has the meaning
set forth in Section 2.06(c) hereof.

 

“NYTC Office Unit” means, prior to the recordation of the
Condominium Documents, the portion of the Project designated as “NYTC Office”
on the Plans and Specifications, together with its undivided proportionate
share of the “Common Areas” appurtenant thereto as shown on the Plans and
Specifications and, after the recordation of the Condominium Documents, the
“NYTC Collective Unit” (excluding the “SPU Unit”) (as such terms are defined in
the Condominium Documents), together with its proportionate share of the “Common
Elements” (as defined in the Condominium Documents) as more particularly shown
on the Condominium Floor Plans.

 

“NYTC Performing Arts Unit” means, prior to the
recordation of the Condominium Documents, the portion of the Project designated
as “SPU” on the Plans and Specifications, together with its undivided
proportionate share of the “Common Areas” appurtenant thereto as shown on the
Plans and Specifications and, after the recordation of the Condominium
Documents, the “SPU Unit” (as defined in the Condominium Documents), together
with its proportionate share of the “Common Elements” (as defined in the
Condominium Documents) as more particularly shown on the Condominium Floor
Plans.

 

“NYTC Units” means the NYTC Office Unit and the NYTC
Performing Arts Unit collectively.

 

“NYTC Units Budget” means the budget setting forth the
total estimated Building Loan Costs and Project Loan Costs allocable to the
NYTC Units and approved by Agent in the Disclosure Side Letter.

 

“NYTC Units Redemption” means the conveyance of the NYTC
Units to NYTC Member in redemption of NYTC Member’s interest in Borrower in
accordance with Section 7.46(a) hereof.

 

“Obligations” means, collectively, the Building Loan
Obligations and the Project Loan Obligations.

 

“OFAC List” means the list of specially designated
nationals and blocked persons subject to financial sanctions that is maintained
by the U.S. Treasury Department, Office of Foreign Assets Control and any other
similar list maintained by the U.S. Treasury Department, Office of Foreign
Assets Control pursuant to any legal requirements, including, without
limitation, trade embargo, economic sanctions, or other prohibitions imposed by
Executive Order of the President of the United States.  As of the date hereof, the OFAC List is accessible
through the internet website www.treas.gov/ofac/t11sdn.pdf.

 

23

 

“Operating Agreement” means that certain Operating
Agreement of Borrower dated as of December 12, 2001, as amended by that
certain First Amendment to Operating Agreement of even date herewith (the “First Amendment”).

 

“Original Maturity Date” means July 1, 2008.

 

“Other Funds” means any Completion Deposits, any Borrower
LC Deposit, and any amounts in the Collection Accounts.

 

“Outstanding Principal” means the principal amount of the
Building Loan outstanding under the Building Loan Notes from time to time.

 

“Overfunding Unit” has the meaning given to such term in
Section 3.20 hereof.

 

“Participant”  means any Person who acquires a participation interest
in the Building Loan or the Project Loan.

 

“Payment and Performance Bond Contracts” has the meaning
given to such term in Section 4.02(e)(6) hereof.

 

“Payment and Performance Bonds” means triple-obligee
payment and performance bonds in favor of Borrower, General Contractor and
Agent in form reasonably satisfactory to Agent, and in each case issued by a
surety company or companies reasonably acceptable to Agent or, at Borrower’s
election, a subguard insurance policy in form and substance satisfactory to
Agent.

 

“Pending Litigations” has the meaning given to such term
in Section 6.04(a) hereof.

 

“Period” has the meaning given to such term in
Section 7.20 hereof.

 

“Permitted Affiliate Contract” has the meaning given to
such term in Section 7.36(f) hereof.

 

“Permitted Exceptions” means those matters listed in Exhibit B
attached hereto and made a part hereof, to which the interest of Borrower in
the Premises is permitted to be subject, and, after the NYTC Units Redemption
shall have occurred, the Extension Loan Documents.

 

“Permitted Lease” means any Lease entered into in
accordance with Section 7.14 hereof.

 

“Permitted Transfers” have the meaning given to such term
in Section 7.32(b) hereto.

 

24

 

“Person” means an individual, partnership, limited
partnership, limited liability company, corporation, business trust, joint
stock company, trust, unincorporated association, joint venture, or other
entity of any kind.

 

“Personal Property”  has the meaning given to such term in the
Building Loan Mortgage.

 

“Plan Assets” means the assets of any Employee Benefit
Plan.

 

“Plans and Specifications” means the plans,
specifications, schematic design documents (to the extent not superseded by
design development documents or final construction drawings), design
development documents (to the extent not superseded by final construction
drawings), final construction drawings and related items for the design and
construction of the Project including, without limitation, the “Drawings” and
“Specifications” (as such terms are defined in the Guaranteed Maximum Price Contract)
that have been approved by Agent in the Disclosure Side Letter, as the same may
be amended by Change Orders made in accordance with this Agreement.

 

“Policies” has the meaning given to such term in the
Building Loan Mortgage.

 

“Premises” means, prior to the NYTC Units Redemption, the
premises demised to Borrower pursuant to the Ground Lease and the Improvements
thereon, and, after the NYTC Units Redemption, the premises demised to FC
Member pursuant to the Severance Subleases to which FC Member is a party and
the Improvements thereon.

 

“Pro Forma Debt Service” means the monthly interest and
principal payment for a loan in the principal amount of the Remaining Loan
Amount, assuming that such loan (x) is made on the first day of the Pro
Forma Testing Period, (y) amortizes on a thirty year schedule, and
(z) has an annual interest rate equal to the greatest of (a) 8.0%,
(b) the Interest Rate in effect as of the date Pro Forma Debt Service is
measured and (c) the yield of the ten (10) year United States Treasury
Note, as published in The Wall Street Journal as of the date Pro Forma
Debt Service is measured, plus two percent (2.0%).  In the event that, in the case of clause (c), (i) more
than one such yield is published, then the average of such yields shall apply
or (ii) no such yield is published, such yield shall be determined from
such comparable financial reporting company as Agent shall reasonably select.

 

“Pro Forma Debt Service Coverage Ratio” means the ratio
of Pro Forma Net Operating Income to Pro Forma Debt Service for the twelve (12)
month period starting from the first day of the first calendar month following
the date in question and ending on the day immediately preceding the one-year
anniversary of such first day (such period, the “Pro Forma Testing Period”).

 

“Pro Forma Net Operating Income” means the excess, if
any, of Pro Forma Operating Income over Pro Forma Operating Expenses.

 

25

 

“Pro Forma Operating Expenses”  means the sum of all expenses reasonably
projected by Borrower and reasonably approved by Agent to be paid or required
to be paid for during the Pro Forma Testing Period by or on behalf of Borrower
and the Members in connection with the operation of the Mortgaged Property,
determined using an accrual method of accounting in accordance with generally
accepted accounting principles consistently applied, including, without
limitation, (a) Property Taxes, (b) premiums on the Policies,
(c) wages, salaries, and fringe benefits of Borrower’s employees
(including overhead expenses) engaged in the operation or management of the
Mortgaged Property or Borrower’s business (to the extent properly charged or
chargeable to the Property), (d) fees and other amounts paid in respect of
utilities serving the Mortgaged Property, (e) fees, costs and expenses for
cleaning, janitorial and security services with respect to the Mortgaged
Property, (f) professional fees incurred in connection with the operation
and management of the Mortgaged Property, provided that if the property manager
is an Affiliate of FC Guarantor, then for purposes of this clause (f), the
total fees payable to such property manager shall be assumed to be not less
than 50 cents per square foot of rentable space in the FC Units and Common
Elements (as defined in the Condominium Documents), (g)  repair and
maintenance costs with respect to the Mortgaged Property, (h) amounts
payable under any equipment leases relating to the Mortgaged Property, and
(i) amounts payable by Borrower to any counterparty to an Interest Rate
Cap.  Pro Forma Operating Expenses shall
not include (1) depreciation or amortization or other non-cash items,
(2) the principal of and any interest on the Building Loan Notes or the
Project Loan Notes or other indebtedness of any Borrower Entity for borrowed
money (including, without limitation, interest on the Equity Contribution and
the Extension Loan but excluding from this exclusion equipment leases),
(3) income taxes, or franchise taxes, or taxes in the nature of income
taxes payable by Borrower or either Member, (4) any actual capital
expenditures (except to the extent includable, under generally accepted
accounting principles consistently applied, in Borrower’s or the Members’
operating expenses for the Pro Forma Testing Period) and (5) internal corporate
overhead expenses.

 

“Pro Forma Operating Income” means the sum of all
payments (other than security deposits and any “percentage rent” or other
revenue or profit sharing arrangements) reasonably projected by Borrower and
reasonably approved by Agent to be received by Borrower or either Member during
the Pro Forma Testing Period from all Tenants under Approved Leases covering
any portion of the Mortgaged Property that are in existence as of the date that
Pro Forma Operating Income is calculated.

 

“Pro Forma Testing Period” has the meaning given to such
term in the definition of Pro Forma Debt Service Coverage Ratio.

 

“Project” means the Units, the “common elements” as
described in the Condominium Floor Plans and the work and items described in
the Plans and Specifications or covered by the Guaranteed Maximum Price
Contract (including all allowances thereunder) or any other Hard Cost Contract,
plus all other structures, fixtures, improvements and personal property that
are either (x) required to be constructed or installed by Borrower or any
Member (or which Borrower or any Member

 

26

 

may elect to
construct) under any Permitted Lease or any of the Public Project Agreements,
or (y) intended to be constructed or installed by any Borrower Entity, as
indicated by the Budgets and all back-ups thereto.

 

“Project Loan” means the loan which is the subject of the
Project Loan Agreement.

 

“Project Loan Agreement” means that certain Project Loan
Agreement dated as of even date herewith by and among Borrower, Initial Agent,
for itself and for the benefit of Lenders, and Agent, for itself and on behalf
of Lenders.

 

“Project Loan Amount” means $149,470,521.

 

“Project Loan Assignment of Leases” has the meaning given
to such term in the Project Loan Agreement.

 

“Project Loan Costs” means, without duplication,
(i) all costs and expenses of (a) achieving Final Completion of the
Project and Stabilized Occupancy, (b) satisfying the obligations of the
Borrower Entities to Agent and Lenders under the Loan Documents, (c) the payment
of interest on the Equity Contribution, to the extent the Extension Loan is
made, and the payment of interest on the Extension Loan, and
(d) Assignments of the Loans (to the extent Borrower is liable therefor
pursuant to Section 7.06 of the Project Loan Agreement) and (ii) all
other actual or anticipated non-construction costs payable through the maturity
of the Project Loan and necessary to achieve Final Completion of the Project
and Stabilized Occupancy (including, without limitation, (1) the Leasing
Incentive Fee (as defined in the FC Operating Agreement) and (2) from and after
the date, if any, that either option described in Section 3.19(a) of the
Project Loan Agreement is exercised, that portion of the Extension Fee relating
to such option attributable to the Project Loan), but only to the extent, in
each of the foregoing clauses (i) and (ii), such costs and expenses do not
constitute Building Loan Costs.  Subject
to Section 7.35(b) of the Project Loan Agreement, with respect to the NYTC
Units, Project Loan Costs shall also include amounts Advanced under the last
sentence of Section 3.05(d) of the Project Loan Agreement.

 

“Project Loan Documents” has the meaning given to such
term in the Project Loan Agreement.

 

“Project Loan Indebtedness” means “Indebtedness” as defined in the Project Loan
Mortgage.

 

“Project Loan Mortgage”  has the meaning given to
such term in the Project Loan Agreement.

 

“Project Loan Notes” has the meaning given to such term
in the Project Loan Agreement.

 

27

 

“Project Loan Obligations” means “Obligations” as defined in the Project Loan
Mortgage.

 

“Property” means the Premises and the Personal Property.

 

“Property Taxes” has the meaning given to such term in
Section 6.34 hereof.

 

“Providing Party” means any Borrower Entity, Agent or any
Lender (as applicable) providing Information to the other for purposes of
Section 11.23 hereof.

 

“Public Project Agreements” means, collectively, the
Ground Lease, the Severance Subleases, the Land Acquisition Agreement, the DUO
Declaration, the Subway Agreement, and the Site 8 Project Agreement.

 

“Public Project Agreements Estoppel Letter” has the
meaning given to such term in Section 4.01(w) hereof.

 

“Punch List Items” applies to the FC Units only and means
minor or insubstantial details of construction or mechanical adjustment, (a)
which are, in Agent’s reasonable judgment, expected to be completed within five
(5) months of Substantial Completion, (b) the non-completion of which,
when all such items are taken together, will not interfere in any material respect
with the use or occupancy of any portion of such Units for their intended uses
or the ability of Borrower or any tenant under a Lease with respect to the FC
Units to perform work that is necessary or desirable to prepare such portion of
the Improvements or the Project for such use or occupancy and (c) which would
not, as reasonably determined by Agent, cost more than $2,500,000 in the
aggregate to complete if new contractors were hired in connection therewith.

 

“ratable share” or “ratably” means, with respect to any Lender, (i) its
share of the Loan Amount, an Advance or a repayment, as the context requires,
based on the proportion of the sum of the face principal amount of the Building
Loan Note(s) and the Project Loan Note(s) held by such Lender to the Loan Amount
or (ii) in the case of an Advance or repayment only, such other share of
an Advance as may be agreed to by Agent and such Lender, provided that such
other share, together with the shares of all other Lenders, equals the amount
of such Advance or such repayment.

 

“Real Estate Professional” has the meaning given to such
term in Section 7.14(b) hereof.

 

“Receiving Party” means any Borrower Entity, Agent or any
Lender or any potential assignee or participant of any Lender (as applicable)
who is the recipient of any Information from any Providing Party.

 

“Recognition Agreements” means, collectively, that
certain Recognition Agreement dated as of December 12, 2001 by ING Member, ING
Vartgoed B B.V., FC 41st Street, the Members, Borrower, Developer and NYTC Guarantor
and that certain 

 

28

 

Recognition
Agreement (Public Parties), dated as of December 13, 2001 by the foregoing
parties, ESDC and Ground Lessor.

 

“Reimbursable Costs” mean all reasonable, third-party
out-of-pocket costs and expenses incurred by Agent or (in the case of clauses
(g) and (h) of this definition only) Lenders in connection with the
administration of the Building Loan, including, without limitation, and without
duplication, (a) responses to requests for consents, approvals or waivers
under the Building Loan Documents, (b) the exercise of any enforcement
right or remedy under any Building Loan Document or the collection of the
Building Loan unless there has been a non-appealable judicial determination
that the exercise of such right for remedy was not proper, (c) review of
any Lease or proposed Lease or review of any Material Contract or proposed
Material Contract, (d) review of any Change Order, construction contract,
Plans and Specifications or other documents related to the construction of the
Project, (e) all costs pursuant to paragraph 8 of each Draw Request,
(f) the costs of any Interest Rate Cap, to the extent incurred by Agent in
accordance with Section 7.20(b) hereof, (g) any amounts owed to Agent
or any Lender pursuant to Sections 3.13, 3.16, 7.09(b), 7.17, 7.20(b),
7.30(c), 7.46(a)(7), 7.50(d) and 8.01 hereof and (h) any such other costs
and expenses incurred by Agent and, to the extent expressly provided for, any
Lender under any Loan Document expressly identified as a Reimbursable
Cost.  In no event shall syndication
costs covered by Section 7.06(a)(ii) hereof be included in the term
“Reimbursable Costs.”

 

“Remaining
Loan Amount” means, as of the date in question, the sum of
(i) the Outstanding Principal, (ii) the “Outstanding Principal” (as
defined in the Project Loan Agreement), and (iii) any Loan Amounts that
have not been advanced.

 

“Rents” has the meaning given to such term in the
Building Loan Mortgage.

 

“Requested Advance Date” has the meaning given to such
term in Section 4.02(e)(1) hereof.

 

“Retainage” has the meaning given to such term in
Section 3.05(c) hereof.

 

“S&P” means Standard and Poor’s Rating Group, a
division of the McGraw-Hall Companies, Inc., or any successor thereto (or if
S&P is no longer in the business of rating public companies, any other
nationally recognized rating agency selected by Agent).

 

“Scope Change” has the meaning given to such term in
Section 7.01 hereof.

 

“Second Extended Maturity Date” has the meaning given to
such term in Section 3.19(a) hereof.

 

“Section 291-f Notice” has the meaning given to such
term in Section 4.01(i)(13) hereof.

 

29

 

“Securities Act” means the Securities Act of 1933, as
amended from time to time, and any successor statute.

 

“Security Deposit Accounts” has the meaning given to such
term in the Security Deposit Accounts Agreement.

 

“Security Deposit Accounts Agreement” has the meaning
given to such term in Section 7.57 hereof.

 

“Security Documents” means, collectively, this Agreement,
the Building Loan Mortgage, the Building Loan Assignment of Leases, the
Assignments of Contracts, from and after their execution, the Security Deposit
Accounts Agreement, the Collection Accounts Agreement and any Assignment of
Interest Rate Cap, and all other Building Loan Documents which grant Agent, for
the benefit of Lenders, a security interest in any collateral in connection
with the Building Loan.

 

“Severance Subleases” has the meaning given to such term
in the Ground Lease, as each has been amended by the Tri-Party Agreement.

 

“Side Letter re: Fees” has the meaning given to such term
in Section 2.07 hereof.

 

“Site 8 Project Agreement” means that certain Site 8
South Project Agreement among ESDC, Ground Lessor, the City of New York,
Borrower, NYTC Member and FC Member, dated as of December 12, 2001.

 

“Spread” means two hundred and sixty-five (265) basis
points per annum, provided, however, that upon satisfaction of the Syndication
Condition and the achievement of Substantial Completion, the Spread
shall be reduced to (x) two hundred and fifty-five (255) basis points per
annum as of the Start Day immediately following the date on which Breakeven
Leasing occurs and (y) two hundred and forty-five (245) basis points per
annum as of the Start Day immediately following the date on which the Pro Forma
Debt Service Coverage Ratio equals or exceeds 1.25:1.00 (provided that clause
(b) of the definition of Pro Forma Debt Service shall not apply for
purposes of this clause (y)).

 

“Stabilized Occupancy” means the point in time at which
(x) ninety-five percent (95%) of the net rentable square footage of the FC
Retail Unit has been leased to tenants pursuant to Approved Leases and said
tenants are in possession of such space and have been paying rent for a period
of three (3) months, and (y) ninety-five percent (95%) of the net
rentable square footage of the FC Office Unit has been leased to tenants
pursuant to Approved Leases and said tenants are in possession of such space
and have been paying rent for a period of three (3) months.

 

“Start Day” has the meaning given to such term in the
definition of “Interest Period.”

 

30

 

“Stored Materials” has the meaning given to such term in
Section 3.04 hereof.

 

“Subordinate Lease” has the meaning given to such term in
Section 7.14(a) hereof.

 

“Substantial Completion” means, with respect to any Unit
or the Project, as the case may be, the occurrence of all of the following
applicable events to the reasonable satisfaction of Agent: (a) the
construction of the Unit (or the Project) (other than Punch List Items) substantially
in accordance with the Plans and Specifications and in accordance with the Loan
Agreements, and the Public Project Agreements, free and clear of any and all
Liens; (b) the payment in full of any and all Building Loan Costs and
Project Loan Costs in respect of the work contemplated by clauses (a), (c), (d)
and (e) of this definition (other than costs consisting of (i) Retainage,
and other amounts that, as of the date of Substantial Completion, are being
withheld from, or are not yet due and payable to, the General Contractor or any
contractor or direct or indirect subcontractor or any other Person and
(ii) amounts payable in respect of Punch List Items to the extent not
covered by the foregoing clause (i)); (c) with respect to the FC
Retail Unit, the issuance of a “zero occupancy temporary certificate of
occupancy” or a temporary certificate of occupancy; (d) with respect to
the FC Office Unit and any of the NYTC Units, the issuance of a temporary
certificate of occupancy; (e) with respect to any Unit, the furnishing of
such Unit with all necessary furniture, fixtures and equipment (including
“tenant improvement” work, other than Punch List Items) to the extent provided
for in the Plans and Specifications or required under any Approved Lease and
(f) with respect to any Unit or the Project, Borrower’s Architects shall have
delivered the certificate referred to in Section 11.5.3 of the Guaranteed
Maximum Price Contract.

 

“Subway Agreement” means that certain Agreement by and
among Borrower, the New York City Transit Authority, Ground Lessor and the
City of New York, dated December 12, 2001, and recorded in the office
of the Register of the City of New York on October 24, 2003 as CRFN
#2003000433126.

 

“Subway Agreement Estoppel Letter” has the meaning given
to such term in Section 4.01(w) hereof.

 

“Super-Major Decision” means any decision by the
Super-Majority Lenders pertaining to (a) the release of any collateral
granted by any Borrower Entity to Lenders in connection with the Building Loan
other than as expressly permitted by the Building Loan Documents (including,
without limitation, Section 7.46 hereof); (b) the release of any
Person from liability in connection with the Building Loan, under any guaranty
or otherwise, other than as expressly permitted by the Building Loan Documents
(including, without limitation, Section 7.46 hereof); (c) a
modification or amendment to the Building Loan Documents which would alter or
amend the payment terms (including, without limitation, the interest rate of,
or the security for, the Building Loan) in any material respect, other than as
expressly contemplated and permitted by the Building Loan Documents;
(d) any change to the definition of “ratably” or “ratable,” “Major
Decision,” “Super-Major Decision,” “Majority Lenders” or “Super-Majority 

 

31

 

Lenders”;
(e) any modifications or amendments to Sections 8.03 or 8.05 hereof;
(f) whether Advances should be made hereunder when Borrower is not
entitled to receive such an Advance because a Default or an Event of Default
has occurred and is continuing; and (g) any other decision under the
Building Loan Documents requiring the approval of the Super-Majority Lenders.

 

“Super-Majority Lenders” means all of the Lenders other
than any Defaulting Lender.

 

“Survey” means a current survey of the Premises
(as-built, to the extent applicable) prepared by a surveyor licensed by the
State in which the Premises is located and certified to Agent and the Title
Companies and prepared in accordance with the Minimum Standard Detail
Requirements for ALTA/ACSM Land Title Surveys jointly established in 1999 and
employing methods and personnel comparable to those outlined in the “Minimum
Angle, Distance and Closure Requirements for Survey Measurements Which Control
Land Boundaries for ALTA/ACSM Land Title Surveys,” showing the legal
description and street address of the Premises; all visible or recorded
easements, curb cuts, and party walls; all sewage, water, electricity, gas and
other utility facilities, together with recording information concerning the
documents creating any such easements; stating the net, after deduction of land
dedicated or used or subject to easements for roads, highways, fire lanes,
utilities, storm drains or any other public purpose, and gross area of the
Land; and including the following Table A items: 2, 3, 4, 6, 7, 8, 10, 11,
14 and 15; and showing such other matters as may be reasonably requested by
Agent; provided, however, that such survey does not need to show the Existing
Improvements (as defined in the Ground Lease).

 

“Syndication Condition” means the Assignment (other than
a pledge or other hypothecation) by GMAC Commercial Mortgage Corporation, as a
Lender (including any successors, “GMACCM”) to any Eligible Assignee that is not an
Affiliate of GMACCM which, together with all such previous Assignments by
GMACCM, aggregate at least fifty percent (50%) of the Loan Amount.

 

“Tax Proceeding” has the meaning given to such term in
Section 7.05 hereof.

 

“Tax Refund” has the meaning given to such term in
Section 7.05 hereof.

 

“Taxes” has the meaning given to such term in
Section 3.16(a) hereof.

 

“Tenants” has the meaning given to such term in the
Building Loan Assignment of Leases.

 

“Title Companies” means the title companies insuring the
liens of the Building Loan Mortgage and the Project Loan Mortgage, which title
companies shall be acceptable to Agent (and Agent hereby acknowledges that
Fidelity National Title Insurance Company, Title Associates Inc., as agent for
Stewart Title Insurance, and Commonwealth Land Title Insurance Company are
acceptable to Agent).

 

32

 

“Title Company Side Letter” means the letter from the
Title Insurance Companies to Agent, dated as of even date herewith, pursuant to
which the Title Companies have agreed to issue paid mortgagee title insurance
policies in the name of Agent or its designee.

 

“Title Insurance Policy” has the meaning given to such
term in Section 4.01(i)(2) hereof.

 

“Transaction Costs” means all reasonable, third-party
out-of-pocket costs and expenses incurred by Agent in connection with the
negotiation, preparation and execution of the Building Loan Documents
(including, without limitation, reasonable attorneys’ fees and disbursements)
and all out-of-pocket underwriting costs, credit reports fees, appraisal fees,
reasonable travel costs, engineering costs, site inspection costs, mortgage
recording taxes, recording fees and charges, survey fees, abstract fees, title
policy premiums and charges, escrow fees and environmental consultants’ fees
and expenses incurred by Agent.  In no
event shall syndication costs covered by Section 7.06(a)(ii) hereof
be included in the term “Transaction Costs.”

 

“Transfer” has the meaning given to such term in
Section 7.32(a) hereof.

 

“Tri-Party Agreement” has the meaning given to such term
in Section 4.01(w) hereof.

 

“UCC” means the Uniform Commercial Code of the State of
New York in effect from time to time.

 

“Unavoidable Delay” has the meaning given to such term in
the Ground Lease.

 

“Underfunding Unit” has the meaning given to such term in
Section 3.20 hereof.

 

“Units” means, collectively, the FC Units and the NYTC
Units, and “Unit”
means any one of the FC Units or the NYTC Units.

 

“Voluntary Bankruptcy” has the meaning given to such term
in Section 9.01(g)(ii) hereof.

 

ARTICLE 2

BUILDING LOAN DOCUMENTS

 

The following documents (other than the NYTC
Completion Guaranty) constitute a portion of the Building Loan Documents:

 

SECTION 2.01       Building Loan Notes.  One or more Building Loan Notes (the “Building Loan Notes”)
from Borrower in favor of each Lender in the aggregate amount of the Building
Loan Amount.  The obligation of Borrower
to pay each 

 

33

 

Lender’s ratable share of
the Building Loan Amount and any other sums advanced by each Lender to Borrower
under the Building Loan Documents, plus all interest accrued thereon, shall be
evidenced by the Building Loan Notes.

 

SECTION 2.02       Building Loan Mortgage.  That certain Ground Leasehold Building Loan
Mortgage, Assignment of Leases, Security Agreement and Subordination Agreement
(the “Building Loan Mortgage”),
securing the maximum principal amount of the Building Loan Amount, from
Borrower in favor of Initial Agent, for the benefit of Initial Agent and
Lenders, and Agent, for the benefit of Agent and Lenders and subordinating the
Severance Subleases to the Building Loan Mortgage and the Ground Lease, dated
as of even date herewith.

 

SECTION 2.03       Construction Loan Disbursement
Agreement.  The Construction Loan
Disbursement Agreement (the “Construction Loan Disbursement Agreement”) among
Borrower, Disbursement Agent, and Agent, for itself and on behalf of Lenders,
dated as of even date herewith.

 

SECTION 2.04       Assignments of Contracts.  (a)  The Assignment of Contracts -
Borrower (the “Assignment of
Contracts - Borrower”) from Borrower in favor of Agent for
the benefit of Agent and Lenders, dated as of even date herewith.

 

(b)           The
Assignment of Contracts – FC Member (the “Assignment of Contracts – FC”) from FC Member in
favor of Agent for the benefit of Agent and Lenders, dated as of even date
herewith.

 

(c)           The
Assignment of Contracts – NYTC Member (the “Assignment of Contracts – NYTC”) from
NYTC Member in favor of Agent for the benefit of Agent and Lenders, dated as of
even date herewith.

 

SECTION 2.05       Assignment of Leases.  (a) That certain Building Loan Assignment of
Leases and Rents from Borrower and the Members in favor of Initial Agent, for
the benefit of Initial Agent and Lenders, and Agent, for the benefit of Agent
and Lenders, dated as of even date herewith (the “Building Loan Assignment of Leases”).

 

SECTION 2.06       Guaranties.  (a)  The Non-Recourse Carveouts
Guaranty (FC Guarantor) (the “FC Non-Recourse Carveouts Guaranty”) from FC Guarantor
in favor of Agent for the benefit of Agent and Lenders, dated as of even date
herewith.

 

(b)           The
Completion Guaranty (FC Guarantor) (the “FC Completion Guaranty”) from FC Guarantor in favor of
Agent for the benefit of Agent and Lenders, dated as of even date herewith.

 

(c)           The
Non-Recourse Carveouts Guaranty (NYTC Guarantor) (the “NYTC Non-Recourse Carveouts Guaranty”)
from NYTC Guarantor in favor of Agent for the benefit of Agent and Lenders,
dated as of even date herewith.

 

34

 

(d)           The
Completion Guaranty (NYTC Guarantor) (the “NYTC Completion Guaranty”) in favor of Agent for the
benefit of Agent and Lenders, dated as of even date herewith.

 

SECTION 2.07       Fee Side Letter.  The side letter from Agent to Borrower dated
as of even date herewith pursuant to which Borrower has agreed to make certain
payments to Agent (the “Side Letter re: Fees”).

 

SECTION 2.08       Disclosure Side Letter.  The side letter from Borrower to Agent dated
as of even date herewith pursuant to which Borrower has disclosed or submitted
to Agent, and Agent has approved, certain matters, schedules, forms and
documents referred to herein (the “Disclosure Side Letter”).

 

ARTICLE 3

AGREEMENT TO LEND AND

PAYMENT OF BUILDING LOAN

 

Subject to the terms and conditions set forth in this
Agreement and each Borrower Entity’s compliance with all of the provisions
hereof and in the other Loan Documents, and relying on each Borrower Entity’s
representations, warranties and covenants set forth herein and the other Loan
Documents, Lenders severally and not jointly agree to make Advances of the
Building Loan to Borrower from time to time and Borrower agrees to borrow from
Lenders up to the Building Loan Amount, in accordance with the provisions
hereof, during the period from the date hereof to the Maturity Date in an
aggregate principal amount of up to the Building Loan Amount, to be used by
Borrower to pay Building Loan Costs actually incurred in connection with the
construction of the Project.

 

SECTION 3.01       Advances.  Each Budget reflects, by category and line
items, the purposes and the amounts for which funds to be advanced by Lenders
under this Agreement are to be used. 
Lenders shall not be required to disburse for any category or line item
of Building Loan Costs with respect to the FC Units or the NYTC Units more than
the amount specified therefor in the applicable Budget, subject to changes
approved by Agent in accordance with Sections 3.02, 3.03, 3.20 and 7.11
hereof (or other reallocations approved by Agent).  No Lender is obligated to fund amounts in excess of its ratable
share of the Building Loan Amount and not more than its ratable share of any
category or line item set forth in any Budget.

 

SECTION 3.02       Cost Overruns.  Each Budget shall, with respect to each Draw
Request, be revised to address any change or anticipated change in Building
Loan Costs that Borrower is aware of which will increase a category or line
item of Building Loan Costs reflected in any Budget (including all anticipated
costs of all Change Orders, regardless of whether the amount of such Change
Order and/or any extension of time with respect thereto has been agreed to and
regardless of whether work on such Change Order has commenced).  Lenders shall have no obligation to make any
further Advances with respect to the Units which are the subject of such
revised Budget unless and until 

 

35

 

such revised Budget is
approved by Agent, such approval not to be unreasonably withheld or delayed.

 

SECTION 3.03       Contingency Reserves.  At any time and from time to time, the
amounts allocated in each Budget as Building Loan Contingency (Hard Costs) and
the amounts allocated in each Budget as Building Loan Contingency (Soft Costs)
shall be disbursed or moved to another line item upon request by Borrower and
upon approval by Agent, which approval shall not be unreasonably withheld, and
may be used only for Building Loan Costs set forth in the applicable Budget for
which such contingency has been reserved.

 

SECTION 3.04       Stored Materials.  Lenders shall not be required to disburse
any funds for any materials, machinery or other Personal Property not yet
incorporated into the Project (the “Stored Materials”), unless Agent receives reasonably
satisfactory evidence that:

 

(a)           the
Stored Materials are, or will be, upon payment with disbursed funds, owned by
Borrower, as evidenced, to the extent required by Agent, by bills of sale,
certificates of title or other reasonably satisfactory evidence;

 

(b)           the
Stored Materials are fabricated or unfabricated components conforming to the
Plans and Specifications and ready for incorporation into the Project;

 

(c)           the
Stored Materials are properly identified and adequately protected, as evidenced
by a letter from Borrower, the General Contractor, the appropriate Major
Contractor or Major Subcontractor or another Person reasonably acceptable to
Agent;

 

(d)           the
Stored Materials are stored at the Premises or at such other site as Agent
shall reasonably approve, which site has been specifically identified to Agent,
and are protected against theft and damage;

 

(e)           the
Stored Materials will be paid for in full (less the Retainage, if any) with the
funds to be disbursed, and all lien rights or claims of the supplier will be
released simultaneously with full payment of all amounts required to be paid
for such Stored Materials and all amounts, if any, required to be paid to the
supplier thereof with respect to the installation thereof (including any
Retainage, if any);

 

(f)            Agent
has or will have upon payment with disbursed funds a perfected, first priority
security interest in the Stored Materials (and with respect to Stored Materials
not stored at the Premises, Borrower shall execute and deliver to Agent any and
all Uniform Commercial Code financing statements or similar filings required by
the laws of any jurisdiction necessary to grant Agent such security interest in
such Stored Materials);

 

36

 

(g)           the
Stored Materials are insured for an amount equal to their replacement costs in
accordance with Section 2.05 of the Building Loan Mortgage;

 

(h)           the
cost of Stored Materials not stored at the Premises in the aggregate at any
time is not more than $25,000,000.00, or such greater amount as may be
reasonably approved by Agent; and

 

(i)            the
Construction Consultant shall have confirmed the accuracy of the letter
required in subparagraph (c) above, and in connection therewith the
Construction Consultant may, but shall not be required to, visit the site of
and inspect the Stored Materials at Borrower’s expense.

 

SECTION 3.05       Amount of Each Advance.  (a)  The proceeds of the Building
Loan and Project Loan shall, assuming satisfaction of all applicable conditions
precedent, be advanced (x) in accordance with the Cost Allocation
Methodology (subject to Section 3.20 hereof) and (y) in amounts which
shall be equal to the aggregate of the Building Loan Costs and Project Loan
Costs incurred by Borrower with respect to each of the FC Units and the NYTC Units
(measured individually) and already paid, or due and payable through the end of
the period covered by the Draw Request in question, on the basis of the
documented cost of Stored Materials and of the work and items in place or
completed, less the following amounts with respect to each of the FC Units and
the NYTC Units, measured individually (without duplication):  (i) the aggregate amount of any
Advances previously made hereunder and under the Project Loan Agreement by
Lenders with respect to such Units, measured individually, allocable to such
Units as of the date of the applicable Building Loan Advance and Project Loan
advance); (ii) any Building Loan Costs and Project Loan Costs with respect
to such Units covered by such Draw Request that are not approved by Agent; and
(iii) the Initial Required Equity Funds, and all other amounts
contributed, directly or indirectly, by Borrower or any Borrower Entity
(whether pursuant to a Completion Deposit that has not been released pursuant
to Section 3.06 below or otherwise) for Building Loan Costs and Project
Loan Costs with respect to such Units, but only to the extent theretofore
advanced and used to pay Building Loan Costs or Project Loan Costs or expected
to be advanced and so used prior to or simultaneously with the Advance in
question.

 

(b)           The
excess, if any, of the Building Loan Costs and Project Loan Costs for each of
the FC Units and NYTC Units (measured individually) incurred to the end of the
period covered by the Draw Request in question, and already paid, or due and
payable through the end of the period covered by the Draw Request in question,
over the aggregate Advances by Lenders for Building Loan Costs and Project Loan
Costs with respect to such Units (including the Advance and “Advance” under the
Project Loan with respect to the Draw Request in question) shall be payable by
Borrower pursuant to, and from the sources (other than Initial Required Equity
Funds) described in, clause (iii) of Section 3.05(a) above (and not
out of the proceeds of the applicable Loan).

 

(c)           The
following amounts (“Retainage”)
shall be retained from the proceeds of any Advance relating to any Hard Cost
Contract: (i) until such time as, in the reasonable judgment of Agent, the
work performed by the contractor or the 

 

37

 

direct or indirect subcontractor supplying goods,
services, materials or labor for the Project under such Hard Cost Contract is
fifty percent (50%) complete, the greater of (a) ten percent (10%) of the
contract value of the work performed by such contractor or direct or indirect
subcontractor through the last day covered by the applicable Advance and
(b) the amount actually retained by Borrower (or any contractor or direct
or indirect subcontractor, as applicable) from payments made or to be made to
the applicable contractor or subcontractor and (ii) thereafter, zero.  Any amount “retained” under clause (i)
of this Section 3.05(c) shall be paid to the applicable contractor or
direct or indirect subcontractor upon final completion of the work to be
performed thereunder and receipt by Agent of final lien waiver(s) for said
contract or subcontract or upon approval of such release by Agent.  Notwithstanding the foregoing, Retainage is
not required with respect to any Advance for a Hard Cost Contract which is limited
to the acquisition of supplies or materials without the installation thereof.

 

(d)           Advances
for fees of the General Contractor, Borrower’s Architects and any payment under
a Permitted Affiliate Contract will be paid only to the extent that they bear a
proportionate relationship to the percentage of completion of the Project (or
the applicable portion thereof), as determined by the Construction Consultant
and only after taking into account the Retainage, provided that amounts for
“general conditions” specified in the Guaranteed Maximum Price Contract shall
be funded as provided in the Guaranteed Maximum Price Contract.  Advances for developer “overhead” costs not
covered by the further provisions of this Section 3.05(d) shall only be made
for such costs that have actually been incurred.  No Advance shall be made for the Development Cost until (i) Core
and Shell Completion shall have been achieved, (ii) the NYTC Units
Redemption has occurred and (iii) the Pro Forma Debt Service Coverage
Ratio shall be equal to or greater than 1.30:1.0, and any such Advance shall
only be made with respect to the portion of the Development Cost then payable
under the Development Agreement-ING. 
Advances for the “Development Costs” line item in the NYTC Units Budget
shall only be made when, and to the extent that, Developer is entitled to
receive payments pursuant to, and in accordance with, Exhibit K of the
Development Agreement-NYTC.

 

(e)           All
sums advanced by Lenders pursuant to any provision of any Building Loan
Document, except so-called “protective advances” pursuant to any remedial
provision of any Building Loan Document, insurance or condemnation proceeds,
funds in the Completion Deposit or other funds (other than funds from Lenders)
on deposit or escrowed with Agent pursuant to the provisions hereof, shall be
deemed Advances of the Building Loan.

 

(f)            Notwithstanding
anything to the contrary contained herein or in any other Loan Document, no
Advance shall be made hereunder or under the Project Loan Agreement for costs
shown in the FC Units Budget or for costs shown in the NYTC Units Budget
(i) if such Advance would cause the aggregate amounts of all Advances
hereunder and under the Project Loan Agreement with respect to such Budget to
exceed the applicable Maximum Amount or (ii) if such Advance would cause
the aggregate amount of all Advances hereunder to exceed the Building Loan
Amount or the 

 

38

 

aggregate amount of Advances under the Project Loan
Agreement to exceed the Project Loan Amount.

 

SECTION 3.06       Insufficiency of Loan Proceeds.  Notwithstanding anything contained herein to
the contrary, if at any time or from time to time during the term of this
Agreement, in Agent’s reasonable judgment (a) the amount of any line item
in either Budget will be insufficient to cover the costs of such line item
(after giving effect to any cost savings realized under Section 7.11, any
Completion Deposit or portion thereof or any “Completion Deposit” under and as
defined in the Project Loan Agreement or portion thereof not being credited for
purposes of this clause (a) to another line item, or any other Other
Funds) and/or (b) either of the Budgets is not In Balance (as defined
below), then no further Advances or “Advances” (as defined in the Project Loan
Agreement) shall be made until Borrower either (i) deposits the amount of
such deficiency (the “Completion Deposit”) with Agent, in cash, or by means of
other security in form, substance and amount reasonably satisfactory to Agent,
(ii) to the extent permitted under Section 3.03 hereof and
Section 3.03 of the Project Loan Agreement, allocates a portion of an
applicable Building Loan Contingency or “Project Loan Contingency” (as defined
in the Project Loan Agreement) to such insufficiency, and/or (iii) to the
extent permitted under Section 7.11 hereof and Section 7.11 of the
Project Loan Agreement, reallocates cost savings within the applicable Budget
to offset such deficiency in accordance with the terms of this Agreement and
the Project Loan Agreement.  “In Balance” shall
mean that the sum of (1) the applicable Maximum Amount plus (2) all
amounts in the Collection Accounts attributable to a Permitted Lease whose
demised premises are in the applicable Units, and (3) the balance of any
monies in any Completion Deposit, Borrower LC Deposit or “Completion Deposit”
or “Borrower LC Deposit” (as such terms are defined in the Project Loan
Agreement), previously made with respect to the applicable Budget, is
sufficient to meet all remaining Building Loan Costs and Project Loan Costs
shown in the applicable Budget (subject to Section 4.02(e)(9)
hereof).  Portions of any Completion
Deposit or any “Completion Deposit” (as defined in the Project Loan Agreement)
(including, in each case, any interest earned thereon) held by Agent with
respect to either Budget shall be applied to Building Loan Costs or Project
Loan Costs simultaneously with the making of the immediately succeeding Advance
as Other Funds, but only upon satisfaction of the terms applicable to the
making of Advances set forth in this Agreement and in the other Building Loan
Documents (if such Advance relates to Building Loan Costs) or the terms
applicable to the making of advances set forth in the Project Loan Agreement
and the other Project Loan Documents (if such advance relates to Project Loan
Costs) (but no such release or application shall be deemed to be an Advance of
Building Loan proceeds hereunder or Project Loan proceeds under the Project
Loan Agreement).  Any Completion Deposit
shall (A) be held by Agent in an interest-bearing account pursuant to a
pledge and assignment agreement in form and substance reasonably satisfactory
to Agent, which agreement Borrower shall execute and deliver to Agent
simultaneously with the delivery of the first monies constituting a part of
such deposit and (B) constitute (together with the interest earned
thereon) additional collateral for the Building Loan and Project Loan.  Notwithstanding any of the foregoing, during
the continuance of an Event of Default, Agent may apply Completion Deposits in
such manner as Agent shall determine.

 

39

 

SECTION 3.07       Quality of Work.  (a)  No Advance or any portion
thereof shall be made with respect to defective work, work that is not in
substantial compliance with the Plans and Specifications or in compliance with the
Public Project Agreements or work which does not comply with all Legal
Requirements applicable to the construction of the Project, each as reasonably
determined by the Construction Consultant and Agent.  Lenders shall, subject to compliance by Borrower with all other
applicable requirements of this Agreement, advance on the date of the next
Advance the remainder of any such Advance or portion thereof previously not
disbursed under this Section after Construction Consultant notifies Agent
that the unsatisfactory work has been corrected.

 

(b)           The
making of an Advance by Lenders shall not constitute any Lender’s or Agent’s
approval or acceptance of the construction theretofore completed or a waiver of
any of the conditions to Lenders’ obligation to make future Advances, nor in
the event that Borrower is unable to satisfy any such condition, shall any such
failure to require that such condition be satisfied have the effect of
precluding Agent from thereafter requiring that such condition be satisfied and
refusing to make an Advance.  Agent’s or
Construction Consultant’s inspection and approval of the Plans and
Specifications, the construction of the Project, or the workmanship and
materials used therein, shall impose no liability of any kind on Lenders, Agent
or Construction Consultant, the sole obligation of Lenders as the result of
such inspection and approval being to make the Advances if, and to the extent,
required by this Agreement.

 

SECTION 3.08       Initial Required Equity Funds; Net
Proceeds; Net Award or Proceeds. 
(a) All Initial Required Equity Funds shall have been expended
before any Advances of the Building Loan shall be made.  All Net Proceeds and Net Award or Proceeds,
if any, that are held by Agent and made available to Borrower pursuant to
Section 2.05(m) or Section 2.06, as applicable, of the Building Loan
Mortgage, shall have been expended before any additional Advances of the
Building Loan shall be made.

 

(b)           Notwithstanding
anything to the contrary in Section 3.08(a), if there is an “overbudgeted”
line item in the NYTC Units Budget pursuant to clause (A), (B) or (C) of the
first sentence of Section 7.11(d) prior to the contribution of all of the
Initial Required Equity Funds, the Initial Required Equity Funds and the
Maximum Amount-NYTC shall each be reduced by the amount of such cost savings.

 

SECTION 3.09       Payment of Indebtedness.  On the Maturity Date the entire Indebtedness
shall be due and payable.

 

SECTION 3.10       Payment of Interest.  (a) Subject to paragraph (b) of
this Section 3.10, the Outstanding Principal shall bear interest at the
Interest Rate until the Maturity Date. 
Interest on the Outstanding Principal shall (subject to
Section 3.15 hereof) be due and payable in arrears on the first Business
Day of each calendar month.

 

40

 

(b)           The
Outstanding Principal, and any interest (but not any interest not paid when due
because Agent and/or Lenders do not comply with Section 5.03(b) hereof),
fee or other amount payable hereunder or under any other Building Loan Document
that is not paid when due (after giving effect to any applicable grace period
expressly referred to herein or therein), shall bear interest from the due date
thereof (without giving effect to any such grace period) until paid at the
Default Rate.  During the continuance of
an Event of Default, the Outstanding Principal and any interest, fee or other
amount payable hereunder or under any other Building Loan Document shall bear
interest at the Default Rate.

 

SECTION 3.11       Late Charge.  Any and all amounts due hereunder or under
the other Building Loan Documents (other than the Outstanding Principal due on
the Maturity Date) which remain unpaid more than five (5) days after the
date said amount was due and payable shall incur a fee (the “Late Charge”) of five
percent (5.00%) of said amount, payable on demand, which shall be in addition
to all of Agent’s other rights and remedies under the Building Loan Documents.

 

SECTION 3.12       Prepayment.  (a)  In addition to prepayments
made in accordance with the Building Loan Mortgage or Sections 7.05, 7.46
and 7.51 hereof, the then Outstanding Principal may be prepaid at any time, in
whole or in part, upon not less than five (5) Business Days’ prior notice
to Agent (but if in part, in the principal amount of $1,000,000 or any whole
number multiple thereof) on any Business Day (other than the day immediately
following Thanksgiving Day or Good Friday); provided, however, that Borrower
shall pay at the time of any such prepayment (x) all accrued and unpaid
interest on the principal portion of the Building Loan being prepaid and
(y) all “breakage” costs actually incurred by Lenders as a result of such
prepayment (“Breakage Costs”),
including, without limitation, any expenses incurred as a result of any
termination of any applicable interest rate management contracts or “hedge
agreements” entered into by any Lender. 
A certificate of Agent setting forth the amount of Breakage Costs which
Lenders are entitled to receive shall be binding and conclusive, absent manifest
error.  Any payment of the Outstanding Principal
made during the continuation of an Event of Default must include any Breakage
Costs.

 

(b)           Prepayments
made in accordance with the Building Loan Mortgage or Sections 7.05, 7.46 and
7.51 hereof shall, at Borrower’s (or the applicable Member’s) option,
(i) be immediately used to prepay the Loans or (ii) pursuant to an
agreement between Borrower (or the applicable Member) and Agent reasonably
satisfactory to Agent, be held by Agent in an interest bearing account as
additional collateral for the Building Loan and the Project Loan until a date
selected by Borrower (or the applicable Member) that is not later than the
first Business Day of the next succeeding calendar month (and Borrower (or the
applicable Member) shall also deposit with Agent interest on the Loans that
will accrue through such date), on which date such amounts (plus any interest
earned thereon) shall be applied to prepay the Loans.  The proviso clause of the first sentence of Section 3.12(a) above
shall apply to all prepayments pursuant to the preceding sentence.

 

41

 

(c)           Borrower
shall have no right to receive Advances of amounts repaid under this Agreement.

 

SECTION 3.13       Increased Costs.  (a) 
If, during the term of the Building Loan, there shall be any increase in
the cost to any Lender of maintaining the LIBOR Rate (including, but not
limited to, a reserve requirement), or a reduction on the amounts received or
receivable under the Building Loan Notes, due to either (i) the
introduction of or any change in the judicial or regulatory interpretation of
any law or regulation or (ii) the compliance with any new guideline or
request from any central bank or other Governmental Authority (whether or not
having the force of law), and provided that such change or new guideline or
request generally affects similarly situated banks, financial institutions or
any other applicable type of entity, then Borrower shall from time to time pay
to Agent additional amounts sufficient to compensate such Lender for such
increased cost.  A certificate as to the
amount of such increased cost, explaining the reason for and showing the
calculation of such increased cost, all in reasonable detail, submitted to
Borrower by Agent or any Lender, shall be conclusive and binding for all
purposes, absent manifest error.

 

(b)           If
Agent reasonably determines that compliance with any new law or regulation or
any new guideline or request from any central bank or other Governmental
Authority (whether or not having the force of law) affects or would affect the
amount of capital required or expected to be maintained by any Lender or any
Person controlling any Lender and that the amount of such capital is increased
by or based upon the existence of the Building Loan Notes, and provided that
such change or new guideline or request generally affects similarly situated
banks, financial institutions or any other applicable type of entity, then
Borrower shall pay to Agent or any such Lender, from time to time as specified
by Agent or any such Lender, additional actual amounts sufficient to compensate
each Lender or such Person in the light of such circumstances.  A certificate as to such amounts, explaining
the reason for and showing the calculation of such amounts, all in reasonable
detail, submitted to Borrower by Agent or any Lender, shall be conclusive and
binding for all purposes, absent manifest error.

 

(c)           Agent
shall endeavor to give Borrower notice of any event giving rise to a payment
under this Section reasonably promptly upon it being made aware of such
event.

 

(d)           If
a Lender incurs increased costs pursuant to Section 3.13(a) hereof, such Lender
shall use reasonable efforts to designate a different lending office for
funding or booking its interest in the Loan or to assign its interest in the
Loan to another of its offices, branches or affiliates if, in such Lender’s
judgment, such designation or assignment (i) would eliminate or reduce such
increased costs or any future increased costs and (ii) would not subject such
Lender to any unreimbursed cost or expense and would not otherwise be
disadvantageous to such Lender in any respect.

 

(e)           The
provisions of this Section 3.13 shall survive the termination of this
Agreement and the payment of all amounts payable under the Building Loan Notes
or the other Building Loan Documents.

 

42

 

SECTION 3.14       Illegality and Inability to Determine.  (a) 
Notwithstanding any other provision of this Agreement or the Building
Loan Notes, if at any time after the date hereof Agent shall notify Borrower
that (i) Agent is unable to determine the LIBOR Rate, (ii) the making
or continuance of a LIBOR Rate loan has been made (x) unlawful by law or
governmental rule, regulation or order, (y) impossible by compliance by
any Lender with any new governmental request (whether or not having the force
of law) or any change in the judicial or regulatory interpretation of any law
or regulation, or (z) impracticable as a result of a contingency occurring
after the date of this Agreement which materially and adversely affects the
interbank Eurodollar market, or (iii) due to circumstances affecting the
LIBOR Rate market generally, the LIBOR Rate will not adequately reflect the
cost to Lenders of maintaining such LIBOR Rate in effect, then the Interest
Rate in effect for the Outstanding Principal shall automatically convert to the
Base Rate plus one percent (1%) and the Default Rate in effect on the
Outstanding Principal shall automatically convert to the Base Rate plus six
percent (6%); unless, in the case of clause (iii), within five (5)
Business Days of notice from Agent thereof, Borrower pays the difference in
cost to Lenders of maintaining such LIBOR Rate in effect.

 

(b)           If
the circumstance described in subparagraph (a) is eliminated, the Interest
Rate shall automatically convert back to the LIBOR Rate.

 

SECTION 3.15       Payments and Computations.  (a) 
All payments due under the Building Loan Documents shall be received by
Agent not later than 2:00 P.M. (New York City time) on the day when
due in U.S. dollars to Agent to the account specified in the Building Loan
Notes.  Any payment received by Agent
after 2:00 P.M. (New York City time) shall be deemed to have been
made on the next succeeding Business Day. 
Any payment due under any Building Loan Document which is timely paid to
Agent shall be deemed, as between the Person making such payment and Lenders,
to have been timely paid.

 

(b)           All
computations of interest shall be made by Agent on the basis of a year of 360
days, in each case for the actual number of days occurring in the period for
which such interest is payable.  Each
determination by Agent of an interest rate hereunder shall be conclusive and
binding for all purposes, absent manifest error.

 

(c)           Whenever
any payment hereunder shall be stated to be due on a day other than a Business
Day, such payment shall be made on the immediately succeeding Business Day.

 

SECTION 3.16       Net Payment; Taxes.  (a) 
All payments to Lenders under any Building Loan Document shall be made
without any set-off, defense or counterclaim, and free and clear of, and
without deduction for any withholdings or on account of, any present or future
income, excise and other taxes of whatever nature (other than taxes generally
assessed on income or receipts of any Lender or any franchise taxes imposed
upon any Lender), or any levies, imposts, duties, charges or fees of any nature
now or hereafter imposed by any Governmental Authority, and all interest,
penalties or other liabilities with respect thereto (collectively, “Taxes”).  If any Borrower Entity is 

 

43

 

compelled by law to make
any such deductions or withholdings, Borrower shall (or shall cause such other
Borrower Entity to) pay such additional amounts as may be necessary in order
that the net amount received by Lenders after such deductions or withholdings
(including any required deduction or withholding on such additional amounts)
shall equal the amount each Lender would have received had no such deductions
or withholdings been made, and Borrower shall (or shall cause such other
Borrower Entity to) promptly provide Agent with evidence satisfactory to Agent
that it has paid such deductions or withholdings.  Moreover, if any Taxes are directly assessed against any Lender,
such Lender may pay such Taxes and Borrower shall pay such additional amount as
may be necessary in order that the net amount received by such Lender after the
payment of such Taxes (including any Taxes on such additional amount) shall
equal the amount such Lender would have received had no such Taxes been
assessed.

 

(b)           Borrower
will indemnify Lenders for the full amount of Taxes (including, without
limitation, any Taxes imposed by any jurisdiction on amounts paid or payable
under this Section 3.16 paid by Lenders and any liability (including
penalties, interest and expenses) arising therefrom or with respect thereto).  Payments pursuant to this Section 3.16 shall
be made within ten (10) days after the date Agent makes written demand
therefor.

 

(c)           For
purposes of this Section 3.16, the term “Lender” shall include any Person
who, for purposes of the relevant laws imposing any Taxes, is treated as a
successor or assign in interest of all or any portion of an interest in any
Building Loan Document, whether such Person is an assignee or a Participant and
whether or not such Person is a registered assignee and shall also include Agent
and GMACCM in their respective capacities hereunder; provided, however, that if
such Person is a Participant, such Person shall only be entitled to receive
payments under this Section 3.16, and Borrower shall only be obligated to
make payments under this Section 3.16 with respect to such Participant, to the
extent that the Taxes assessed against, or paid by, such Participant do not
exceed the Taxes that would have been assessed against, or paid by, the Lender
from whom such Participant acquired (whether directly or indirectly) such
interest.

 

(d)           The
agreements and obligations contained in this Section 3.16 shall survive
the termination of this Agreement and the payment of all amounts payable under
the Building Loan Notes or the other Building Loan Documents.

 

(e)           (i)            Each
Non-US Lender shall deliver to Borrower and Agent, on or prior to the date of
the applicable Assignment and Acceptance Agreement pursuant to which it becomes
a Lender, (A) two original copies of Internal Revenue Service
Form W8-ECI or Form W-8BEN (or any successor forms), properly
completed and duly executed by such Lender, together with any other certificate
or statement of exemption required under the Code to establish that such Lender
is not subject to deduction or withholding of United States federal income tax
with respect to any payment to such Lender of principal, interest, fees or
other amounts payable under any of the Building Loan Documents or (B) if
such Lender is not a “bank” or other Person described in 

 

44

 

Section 881(c)(3) of
the Code and cannot deliver either Internal Revenue Service Form W8-ECI or
Form W-8BEN pursuant to clause (A) above, a Certificate of Non-Bank
Status, together with two original copies of Internal Revenue Service Form W-8
(or any successor form), all properly completed and duly executed by such
Lender, together with any other certificate or statement of exemption required
under the Code to establish that such Lender is not subject to deduction or
withholding of United States federal income tax with respect to any payment to
such Lender of interest payable under any of the Building Loan Documents.

 

(ii)           Each Lender required to deliver any
forms, certificates or other evidence with respect to United States federal
income tax withholding matters pursuant to clause (i) of
subsection 3.16(e) above hereby agrees, from time to time after the
initial delivery by such Lender of such forms, certificates or other evidence,
whenever a lapse in time or change in circumstances renders such forms, certificates
or other evidence obsolete or inaccurate in any material respect, that such
Lender shall promptly (A) deliver to Borrower two new original copies of
Internal Revenue Service Form W8-ECI or Form W-8BEN (or any successor
forms) or a Certificate of Non-Bank Status and two original copies of Internal
Revenue Service Form W-8 (or any successor form), as the case may be,
properly completed and duly executed by such Lender, together with any other
certificate or statement of exemption required in order to confirm or establish
that such Lender is not subject to deduction or withholding of United States
federal income tax with respect to payments to such Lender under the Building
Loan Documents or (B) notify Borrower of its inability to deliver any such
forms, certificates or other evidence.

 

(iii)          No Borrower Entity shall be required
to pay any additional amount to any Non-US Lender under Section 3.16(a)
hereof if such Lender shall have failed to satisfy the requirements of
subsection (i) or (ii)(A) of Section 3.16(e) above; provided that if
such Lender shall have satisfied the requirements of subsection (i) of
Section 3.16(e) on the date of the Assignment and Acceptance Agreement
pursuant to which it became a Lender, nothing in this Section 3.16(e)(iii) shall
relieve any Borrower Entity of its obligation to pay any additional amounts
pursuant to Section 3.16(a) in the event that, as a result of any change
in any applicable law, treaty or governmental rule, regulation or order, or any
change in the interpretation, administration or application thereof, such
Lender is no longer properly entitled to deliver forms, certificates or other
evidence at a subsequent date establishing the fact that such Lender is not
subject to withholding as described in Section 3.16(e)(i).

 

SECTION 3.17       Distribution to Lenders.  (a) 
In the event Agent receives current funds, in payment of principal,
interest or any other sums due hereunder of which Lenders are entitled to a
share, on or prior to 2:00 P.M. (New York City time) on any Business
Day, then, on such date, Agent will notify Lenders of the same and will
distribute like funds by wire transfer of immediately available funds to each
Lender ratably to such accounts at such places as have been designated by the
respective Lenders in writing from time to time.  If such funds are received after 2:00 P.M. (New York
City 

 

45

 

time) on any Business
Day, then Agent shall distribute such funds no later than the next succeeding
Business Day.  Upon Agent’s receipt of
any other amounts payable by Borrower or any other Person for items other than
principal, interest or any other sums due under the Building Loan Documents of
which Lenders are entitled to a share pursuant to the terms of any Building
Loan Document or any Assignment and Acceptance Agreement, Agent shall cause the
payment to be applied in accordance with this Agreement, the other Building
Loan Documents and such Assignment and Acceptance Agreement.

 

(b)           If
any Lender shall obtain any payment (whether voluntary or involuntary, through
the exercise of any right of set-off, or otherwise) on account of the amounts
owing to it in excess of its ratable share of payments on account of amounts
obtained by all Lenders, such Lender shall forthwith purchase from the other
Lenders such participations in the amounts owing to them as shall be necessary
to cause such purchasing Lender to share the excess payment ratably with each
of them; provided, however, that if all or any portion of such excess payment
is thereafter recovered from such purchasing Lender, such purchase from each
Lender shall be rescinded and each such Lender shall repay to the purchasing
Lender the purchase price to the extent of such recovery together with an
amount equal to such Lender’s ratable share (according to the proportion of (i) the
amount of such Lender’s required repayment to (ii) the total amount so
recovered from the purchasing Lender) of any interest or other amount paid or
payable by the purchasing Lender in respect of the total amount so recovered.  Borrower agrees that any Lender so
purchasing a participation from another Lender pursuant to this
Section 3.17(b) may, to the fullest extent permitted by law, exercise
all its rights of payment (including the right of set-off) with respect to such
participation as fully as if such Lender were the direct creditor of Borrower
in the amount of such participation.

 

SECTION 3.18       Balloon Payment.  Borrower understands and acknowledges that
this Agreement and the other Building Loan Documents do not provide for any
required amortization of the Building Loan and therefore, at the Maturity Date,
a balloon payment of the Outstanding Principal will be required, along with
payment in full of other sums due hereunder and under the other Building Loan
Documents.

 

SECTION 3.19       Extensions.  (a)  Borrower shall have two
(2) options to extend the term of the Loans (but not the term of only the
Building Loan or only the Project Loan) for six (6) months each upon the
satisfaction of the following terms and conditions:

 

(i)            not less than sixty (60) days before
the Maturity Date, Borrower shall have given Agent notice of its election to
extend the term of the Loans pursuant to this Section 3.19(a) and
Section 3.19(a) of the Project Loan Agreement (the date on which such
notice shall be given being hereinafter referred to as the “Extension Option Exercise Date”);

 

(ii)           on the Extension Option Exercise Date
and through and including the Maturity Date, no monetary Event of Default shall
exist;

 

46

 

(iii)          Borrower shall pay the Extension Fee
on or before the Maturity Date;

 

(iv)          Core and Shell Completion shall have
been achieved by the date which is fifteen (15) days prior to the Maturity Date
(the “Measuring Date”)
and a temporary certificate of occupancy (which may be a zero occupancy or core
and shell certificate of occupancy) shall have been issued for the Project on
or before the Measuring Date;

 

(v)           as of the Measuring Date, the Pro
Forma Debt Service Coverage Ratio (calculated after giving effect to the
payment made pursuant to clause (6) of Section 7.46(a) hereof) shall
be equal to or greater than 1.30:1.0, provided that, for purposes of this
clause (vi), only Approved Leases with respect to which Rents are being paid as
of the Measuring Date shall be included for purposes of calculating Pro Forma
Operating Income;

 

(vi)          the NYTC Units Redemption shall have
occurred on or before the Measuring Date; and

 

(vii)         the ratio, expressed as a percentage,
of the Remaining Loan Amount as of the Maturity Date to the Appraised Value (as
shown in a new appraisal by the appraiser that performed the Appraisal or any
other “MAI” appraiser selected by Agent or an update to the Appraisal, in
either case dated as of a date no earlier than sixty (60) days prior to the
Measuring Date) shall be equal to or less than fifty-five percent (55%).

 

If the conditions under this Section 3.19(a) are met, then the
reference to the Original Maturity Date in the definition of Maturity Date (or
such later date that has replaced the Original Maturity Date in said definition
as a result of the application of the last sentence of Section 3.19(b) hereof)
shall be deemed deleted and replaced with a reference to a date that is the
six-month anniversary of the Original Maturity Date (or such later date) (in
the case of the first option) (such date, the “First Extended Maturity Date”) or the date
that is the six-month anniversary of the First Extended Maturity Date (or such
later date that has replaced the First Extended Maturity Date in said
definition as a result of the application of the last sentence of Section
3.19(b) hereof)(in the case of the second option) (the “Second Extended Maturity Date”).  Such extension shall be on the same terms
and conditions contained in this Agreement except (x) to the extent expressly
provided to the contrary herein, and (y) if the first extension has occurred,
Borrower shall only have the right to one (1) remaining six-month
extension pursuant to this Section 3.19(a) and if the second extension has
occurred, Borrower shall have no further right to extend the term of the Loans
pursuant to this Section 3.19(a).

 

(b)           Force
Majeure Extension.  Borrower shall
have one or more options to extend the term of the Loans (but not the term of
only the Building Loan or only the Project Loan) if a Force Majeure Event shall
have occurred and if the following terms and conditions are satisfied:  (i) not more than five
(5) Business Days after Borrower becomes aware of the occurrence of a
Force Majeure Event, Borrower 

 

47

 

shall have given Agent notice of the occurrence of
such Force Majeure Event and a notice of its election to extend the term of the
Loans pursuant to this Section 3.19(b) and Section 3.19(b) of the
Project Loan Agreement (the date on which such notice shall be given being
hereinafter referred to as the “Force Majeure Extension Option Exercise Date”);
(ii) in the reasonable judgment of Agent, such Force Majeure Event will
delay Final Completion of the Project beyond the Maturity Date; (iii) in
the reasonable judgment of Agent, Borrower shall have taken all steps commercially
reasonable to mitigate the effects of such Force Majeure Event; (iv) on
the Force Majeure Extension Option Date, no Noticed Default or Event of Default
shall exist under any Loan Document; (v) Borrower shall have provided to
Agent evidence of the continuation of the Policies and the payment of any
premiums then due therefor; (vi) appropriate extensions, to the extent
required to keep such document in full force and effect and free from any
default, shall have been granted under the Public Project Agreements and for a
period of time at least equal to the Force Majeure Extension Period;
(vii) Borrower shall have provided to Agent evidence of the continuation
of the Initial Advance Interest Rate Cap through the extended Maturity Date on
terms and conditions reasonably satisfactory to Agent, to the extent Borrower
was required to purchase the Initial Advance Interest Rate Cap in accordance
with the terms hereof, or, if no Initial Advance Interest Rate Cap was so
required, Borrower and Agent shall have entered into a written agreement
reasonably satisfactory to Agent with respect to interest rate protection
during the Force Majeure Extension Period (provided that if, in Agent’s
discretion, the cost of any interest rate protection required by this clause (vii)
is prohibitive, Borrower may deposit with or deliver to Agent other security in
lieu thereof satisfactory to Agent); and (viii) each Guarantor shall
acknowledge and confirm to Agent, on or prior to the Maturity Date, the
exercise of the extension period by Borrower. 
The period of the extension option under this Section 3.19(b) shall
be determined by Agent in its reasonable judgment and shall be equal to the
number of days by which Substantial Completion has been or is reasonably
expected to be delayed due to such Force Majeure Event, assuming that Borrower
and the General Contractor take all steps commercially reasonable to mitigate
the effects of such Force Majeure Event; provided, however, that (x) in no
event shall all extensions pursuant to this Section 3.19(b) be more than
180 days in the aggregate (the period of such extensions being hereinafter
collectively referred to as the “Force Majeure Extension Period”) and (y) any such
extension shall in all events end if, and as of the date that, Borrower is not
in compliance with the immediately succeeding sentence.  If a Force Majeure Event shall have
occurred, Borrower shall (1) periodically (at least once every two weeks)
advise Agent of the status of such Force Majeure Event and its effect on
completion of the Project and (2) take all steps, and cause the General
Contractor to take all steps, commercially reasonable to mitigate the effects
of such Force Majeure Event.  If the
Maturity Date is extended in accordance with this Section 3.19(b), all
references to the Original Maturity Date, the First Extended Maturity Date, or
the Second Extended Maturity Date shall be interpreted so that such references
are to such date, as extended by the applicable Force Majeure Extension Period.

 

(c)           Borrower
shall pay at the time of and as a condition to the extension of the term of the
Building Loan described in Sections 3.19(a) and (b) above,
(i) all reasonable, third-party out-of-pocket fees and expenses of Agent
in preparing, executing, delivering, or recording any documents or instruments
related to such 

 

48

 

extension, and (ii) all reasonable, third-party
out-of-pocket fees and expenses of Agent in connection with any title company
searches and insurance which Agent may reasonably then require.

 

(d)           Without
Agent’s prior reasonable consent, Borrower shall not consent to an extension
for an “Excusable Delay” under Section 11.7 of the Guaranteed Maximum
Price Contract unless (i) such “Excusable Delay” is a Force Majeure Event
and (ii) the conditions set forth in clauses (i)-(viii) of
Section 3.19(b) hereof have been satisfied.

 

SECTION 3.20       Reallocations.  Agent and Borrower acknowledge and confirm
that NYTC Member has the right to dispute any Draw Request (including if made
after the NYTC Units Redemption) and the allocation of costs to the Units shown
in any Draw Request, as and to the extent set forth in the Operating
Agreement.  (Notwithstanding the
foregoing or the further provisions of this Section 3.20, no such dispute
shall abrogate, nullify or modify any Draw Request or any portion
thereof.)  Agent and Borrower further
acknowledge that, following the resolution by agreement between the Members of
any such dispute (which agreement or determination Borrower, the Members, and
Agent shall accept as final and binding), Borrower shall reallocate Building
Loan Costs and Project Loan Costs between the FC Units and the NYTC Units as
necessary to reflect the resolution or arbitration of the issues in dispute,
and the next Draw Request shall reflect such re-allocations.  More particularly, Borrower and Agent agree
that if any costs were (or are) initially allocated to the FC Units or the NYTC
Units (such Units, the “Overfunding Unit”) and then are re-allocated to the
other Units (such Units, the “Underfunding Unit”), the Building Loan Costs and Project
Loan Costs allocated to the Overfunding Unit shall be decreased by all such
amounts which are so re-allocated, together with interest thereon as provided
herein from the date on which such cost was (or is) paid by an Advance, until
the date on which each such cost is re-allocated to the Underfunding Units, and
the Building Loan Costs and Project Loan Costs of the Underfunding Units shall
be likewise increased.  In such event,
at the next Draw Request, the Maximum Amount covering the Overfunding Unit
shall be retroactively increased to reflect the reallocated items of Building
Loan Costs and Project Loan Costs, together with interest at the Interest Rate
from the date of the Advance for such item, and the outstanding balance of the
Maximum Amount covering the Underfunding Units shall be retroactively decreased
to reflect such reallocated items of Building Loan Costs and Project Loan
Costs, together with interest at the Interest Rate.  Corresponding adjustments shall be made in the applicable
Budgets.  In addition, if the
Overfunding Unit had funded such amount not through an Advance but through a
capital contribution or out of other funds, then a reallocation shall be made
to reflect such amount in the applicable Budgets.

 

49

 

ARTICLE 4

CONDITIONS PRECEDENT TO BUILDING LOAN

CLOSING AND DISBURSEMENT OF LOAN PROCEEDS

 

SECTION 4.01       Conditions of Building Loan Closing.  The obligation of Agent to execute and
deliver on the Closing Date the Loan Documents to which it is a party shall be
subject to the following conditions precedent, unless any such condition
precedent is waived by Agent in its sole discretion (and Agent hereby agrees
that its execution and delivery of this Agreement constitutes an acknowledgment
that all such conditions precedent have been satisfied or waived as a condition
precedent to the closing hereunder):

 

(a)           Payment
of Fees.  Borrower shall have paid
all fees described in the Commitment Letter as being payable on or before the
closing of the Building Loan and all other fees and expenses required by this
Agreement, the Side Letter re: Fees or any other Building Loan Document to be
paid on the Closing Date including, without limitation, the Administration Fee
allocable to the period of time from the Closing Date through the end of the
calendar month on which the Closing Date occurs.

 

(b)           Required
Equity Funds.  Borrower shall have
furnished Agent with evidence in form and content satisfactory to Agent of the
Initial Required Equity Funds contributed as of the date immediately preceding
the date hereof, which Initial Required Equity Funds are set forth on Schedule 1
hereto, and that the Loan Amount plus all Initial Required Equity Funds will be
sufficient to cover all Building Loan Costs and Project Loan Costs reasonably
anticipated to be incurred, as set forth in the Budgets.

 

(c)           Building
Loan Documents.  The Building Loan
Documents listed in Article 2 hereof, in form and substance satisfactory
to Agent, shall have been duly executed and delivered by the parties thereto
and shall be in full force and effect, and Agent shall have received the
originals thereof.

 

(d)           Guaranteed
Maximum Price Contract.  The
Guaranteed Maximum Price Contract, together with that Guarantee of Performance
dated as of February 5, 2004 by the GMP Guarantor in favor of Borrower
(the “GMP Guaranty”),
each of which shall be in form and substance satisfactory to Agent, shall have
been duly executed and delivered by the parties thereto, shall be in full force
and effect and Agent shall have received a certified copy thereof.  The General Contractor shall have duly
executed and delivered to Agent a consent to the collateral assignment of the
Guaranteed Maximum Price Contract and the GMP Guarantor shall have duly
executed and delivered to Agent a consent to the collateral assignment of the
GMP Guaranty, in form and substance satisfactory to Agent.

 

(e)           Architect’s
Contract.  The Architect’s Contract,
in form and substance satisfactory to Agent, shall have been duly executed and
delivered by the 

 

50

 

parties thereto, shall be in full force and effect and
Agent shall have received a certified copy thereof.  Borrower’s Architects shall have duly executed and delivered to
Agent a consent to the collateral assignment of the Architect’s Contract, in
form and substance satisfactory to Agent.

 

(f)            Leasing
Agent Agreement.  If any Leasing
Agent Agreement shall have been executed, (a) such Leasing Agent Agreement
shall be in form and substance satisfactory to Agent, shall have been duly
executed and delivered by the parties thereto and shall be in full force and
effect, (b) Agent shall have received a certified copy thereof and
(c) if requested by Agent, the leasing agent thereunder shall have duly
executed and delivered to Agent a consent to the collateral assignment of such
Leasing Agent Agreement, in form and substance satisfactory to Agent.

 

(g)           Managing
Agent Agreement.  If any Managing
Agent Agreement shall have been executed by Borrower or any Member,
(a) such Managing Agent Agreement shall be in form and substance
satisfactory to Agent, shall have been duly executed and delivered by the
parties thereto and shall be in full force and effect, (b) Agent shall
have received a certified copy thereof and (c) the managing agent
thereunder shall have duly executed and delivered to Agent a consent to the
collateral assignment of such Managing Agent Agreement, in form and substance
satisfactory to Agent.

 

(h)           Other
Material Contracts.  Borrower shall
have delivered to Agent true, correct and complete photocopies of all other
Material Contracts in effect as of the date hereof, certified by Borrower or
such other Borrower Entity which is a party thereto, and at Agent’s option, a
consent to the collateral assignment of such contracts.

 

(i)            Deliveries.  The following items or documents shall have
been delivered to Agent, each of which shall be in form and substance
satisfactory to Agent:

 

(1)           Plans and Specifications.  Two (2) complete sets of the Plans and
Specifications, including each Change Order (regardless of whether the amount
of such Change Order and/or any extension of time with respect thereto has been
agreed to and regardless of whether work on such Change Order has commenced),
certified by Borrower;

 

(2)           Title Insurance Policy.  A marked commitment to issue a paid
mortgagee title insurance policy (the “Title Insurance Policy”) from the Title Insurance
Companies, which marked commitment shall be subject only to the Permitted
Exceptions, shall insure the Building Loan Mortgage as a valid first lien on
the applicable Mortgaged Property and shall be in the amount of the Building
Loan Amount (subject to any pending disbursements clause) and shall contain
such coverages, endorsements, re-insurance and co-insurance as the Agent may
require;

 

51

 

(3)           Other Insurance.  The original of all Policies which shall be
in form and content acceptable to Agent and an insurance consultant acceptable
to Agent and evidence from insurance companies acceptable to Agent indicating
that Borrower’s Architects, General Contractor and all other Major Contractors
and Major Subcontractors are covered by professional liability insurance or
other liability insurance, as applicable, as required by the applicable
contract;

 

(4)           Equity Contribution.  All of the Equity Contribution Documents,
certified by FC Member and NYTC Member;

 

(5)           Extension Loan.  If NYTC Guarantor does not have an
Acceptable Rating as of the Closing Date, cash or a letter of credit in an
amount and (in the case of a letter of credit) in the form and containing such
provisions as are acceptable to Agent, as security for the Extension Loan;

 

(6)           Labor Agreement.  An executed and delivered “no strikes”
agreement between Borrower and the Building & Construction Trade Council of
Greater New York (the “No Strikes Agreement”) in form and substance
satisfactory to Agent;

 

(7)           Environmental Report.  A Phase I environmental site
assessment prepared by an environmental consulting or engineering firm
acceptable to Agent upon which Agent is expressly entitled to rely, a
“close-out” letter relating to asbestos abatement upon which Agent is expressly
entitled to rely, and if requested by Agent, a Phase II environmental site
assessment, indicating in each case a condition of the Premises in all respects
satisfactory to Agent, and upon which Agent is expressly entitled to rely;

 

(8)           Survey.  The Survey;

 

(9)           Submarket Analysis.  A submarket analysis, including, without
limitation, potential new construction, rents, expenses and absorption
underwritten by Agent in form and substance satisfactory to Agent;

 

(10)         Geotechnical Updates.  A geotechnical report from an engineering
company satisfactory to Agent, which report shall indicate a condition of the
Premises in all respects satisfactory to Agent, and upon which report Agent is
expressly entitled to rely;

 

(11)         Governmental Approvals and Third
Party Approvals.  All Governmental
Approvals and all other third party consents and approvals necessary for the
valid execution, delivery and performance by any Borrower Entity of this
Agreement or the other Building Loan Documents and for the construction of the
Project as contemplated by the 

 

52

 

Plans and Specifications,
including, without limitation, a building permit to the extent then required by
applicable law;

 

(12)         Architect’s Statement and General
Contractor’s Certificate.  A
statement from Lead Architect (the “Architect’s Certificate”) and a certificate from the
General Contractor (the “General Contractor’s Certificate”) in the forms attached
hereto as Exhibits I
and J, respectively or in
such other forms as may be acceptable to Agent;

 

(13)         Leases.  Copies of all Leases, if any, each certified
by Borrower or the applicable Member, as applicable, and each satisfactory to
Agent; Non-Disturbance Agreements between Agent and the tenants under such Leases
to the extent required by Section 7.14(b) hereof (with such changes
thereto as may be reasonably approved by Agent) or in such other form as may be
reasonably approved by Agent; estoppel certificates from the tenants under such
Leases, in the form attached hereto as Exhibit K; a New York Real Property Law
Section 291-f notice (a “Section 291-f Notice”) with respect to each Lease;
and an executed acknowledgment from each tenant under such Leases relating to
the payment of rent and security deposits to the applicable Collection Accounts
and Security Deposits Account and the use of an expedited check clearing
process;

 

(14)         Organizational Documents.  Copies of all organizational documentation
related to the Borrower Entities and such other entities as Agent shall request
and/or their formation, structure, existence, good standing and/or
qualification to do business, as Agent may request, including such resolutions
and/or consents and incumbency certificates as may be requested by Agent,
certified in each case by the applicable Borrower Entity;

 

(15)         Ownership Structure Chart.  A chart showing all direct and indirect
ownership interests in Borrower and the Members (but not including any direct
or indirect ownership interests in either Guarantor provided that the shares of
such Guarantor are listed on a nationally recognized exchange), to the extent
required by Agent, in form and substance acceptable to Agent and certified by
Borrower or the applicable Member, as true, complete and correct in all
respects as of the Closing Date;

 

(16)         Budgets.  The Budgets, certified by Borrower;

 

(17)         Searches.  To the extent required by Agent, current tax
lien, pending litigation, bankruptcy, judgment lien and Uniform Commercial Code
searches against each Borrower Entity and such other entities as Agent shall
request, in such jurisdictions and offices as Agent shall designate, dated not
earlier than 30 days before the Closing Date.

 

53

 

Such searches shall not
have revealed any lien, litigation, bankruptcy or filing against any such
entities other than those acceptable to Agent; and

 

(18)         Plan and Cost Review.  A plan and cost review prepared by
Construction Consultant and acceptable to Agent.

 

(j)            Legal
Opinions.  Agent shall have received
opinions addressed to Agent in form and substance satisfactory to Agent and
Agent’s counsel from counsel satisfactory to Agent as to such matters
(including, without limitation, zoning matters, the Guaranteed Maximum Price
Contract and the GMP Guaranty) as Agent shall request.

 

(k)           Union
Labor.  Agent shall have received
evidence satisfactory to it (and Agent acknowledges that the execution by
General Contractor of the General Contractor’s Certificate shall be
satisfactory evidence) that all work performed in connection with the
construction of the Project has been performed in accordance with the
provisions of Section 7.37 hereof.

 

(l)            Notices.  All notices required by any Governmental
Authority or by any applicable Legal Requirements to be filed prior to the date
of this Agreement in connection with the Project or the Building Loan shall
have been filed.

 

(m)          Appraisal.  An appraisal satisfactory to Agent prepared
by an appraiser satisfactory to Agent (an “Appraisal”).

 

(n)           Performance;
No Default.  Each Borrower Entity
shall have performed and complied with all terms and conditions of the Building
Loan Documents to which each is a party required to be performed or complied
with by it at or prior to the Closing Date, and on the Closing Date, there
shall exist no Default or Event of Default hereunder.

 

(o)           Representations
and Warranties.  The representations
and warranties made by the Borrower Entities in the Building Loan Documents or
otherwise made by or on behalf of such Borrower Entities in connection
therewith shall be true and correct in all material respects on the Closing
Date.

 

(p)           Proceedings.  All proceedings in connection with the
transactions contemplated by this Agreement and the other Building Loan
Documents shall be satisfactory to Agent and Agent’s counsel, and Agent shall
have received all information and such counterpart originals or certified
copies of such documents and such other certificates, opinions or documents as
Agent and Agent’s counsel may require.

 

(q)           Lien
Waivers.  Agent and Construction
Consultant shall have received duly executed lien waivers in substantially the
form set forth in Exhibit L
hereto (or such other form as may be approved by Agent) from all Lien Waiver
Parties to the extent payment thereto has been made prior to, or is being made
on, the Closing Date.  Notwithstanding
the foregoing, in the event that there shall exist any dispute with any such
Lien Waiver Party as to payment for all or any portion of the work performed or

 

54

 

labor, materials or goods supplied prior to the
Closing Date by such Lien Waiver Party, and provided that in the reasonable
opinion of Agent and Construction Consultant, Borrower has a reasonable,
good-faith position in such dispute and is diligently working to resolve such
dispute, Agent shall accept a partial lien waiver from such Lien Waiver Party
covering the portion of such payment not in dispute, provided that (x) such
disputes with all Lien Waiver Parties shall not, without Agent’s consent,
exceed $2,000,000 in the aggregate and (y) either (1) Borrower shall demonstrate,
to Agent’s reasonable satisfaction, that each applicable Lien Waiver Party does
not have a material likelihood of prevailing, in whole or in part (including
pursuant to a settlement), in its dispute or (2) to the extent the foregoing
clause (1) does not apply, the Loans must remain In Balance after assuming that
such Lien Waiver Parties will prevail in such disputes.

 

(r)            Project
Loan.  All entities (other than
Agent) required to execute or deliver any document in connection with the
Project Loan shall have simultaneously executed and/or delivered such documents
and all conditions precedent to the Project Loan set forth in Section 4.01
of the Project Loan Agreement shall have been fulfilled (or waived by Agent in
its sole discretion).

 

(s)           ADA
Compliance.  Borrower shall have
furnished evidence satisfactory to Agent that the Improvements, when
constructed, will comply in all respects with the Americans with Disabilities
Act of 1990, all state and local laws and ordinances relating to handicapped
access and all rules, regulations and orders issued pursuant thereto,
including, without limitation, a report on the Americans with Disabilities
Accessibility Guidelines for Buildings and Facilities (and Agent acknowledges
that the execution by the Lead Architect of the Architect’s Certificate shall
be satisfactory evidence thereof).

 

(t)            Construction
Consultant’s Report.  Agent shall
have received a written report from the Construction Consultant, in form and
substance satisfactory to Agent, relating to the construction of the Project
performed prior to the Closing Date, including, without limitation, a report on
the percentage of completion which has been achieved as of the Closing Date for
each of the Units.

 

(u)           Schedules.  Borrower shall have delivered to Agent the
Construction Schedule and the Disbursement Schedule, each certified by
Borrower, and each such schedule shall be satisfactory to Agent and
Construction Consultant.

 

(v)           Lien
Law.  Borrower shall have executed,
acknowledged and delivered the Lien Law Affidavit, the Notice of Lending and
the Notice of Assignment, in each case in form and substance satisfactory to
Agent.

 

(w)          Tri-Party
Agreement and Estoppel Letters.  (i)
Borrower shall have delivered that certain Tri-Party Agreement by and among
Ground Lessor, Borrower, the Members and Agent, for itself and on behalf of
Lenders (“Tri-Party Agreement”)
with respect to the Ground Lease and the Severance Subleases, in form and
substance acceptable to Agent, and (ii) an estoppel letter in form and
substance acceptable to Agent from (1) the New York City Transit Authority with
respect to the 

 

55

 

Subway Agreement (the “Subway Agreement Estoppel Letter”), and (2)
from ESDC, Ground Lessor and the City of New York with respect to the Site 8
Project Agreement, the Land Acquisition Agreement and the Subway Agreement (the
“Public Project Agreements Estoppel
Letter”), each in form and substance acceptable to Agent.

 

(x)            Closing
Statement.  Borrower and Agent shall
have executed and delivered a closing statement setting forth, in reasonable
detail, the sources and uses of funds as of the Closing Date.

 

(y)           Zoning;
Transfer Tax Rulings, etc.  Borrower
shall have delivered to Agent evidence satisfactory to Agent that (i) all
zoning approvals required for the construction of the Project have been
obtained and (ii) Borrower has complied with all requirements of the
Subway Agreement to the extent required as of such date.  Borrower shall have delivered to Agent
rulings, in form and substance satisfactory to Agent, from the City and State
of New York, with respect to the future exemption from transfer taxes of
the redemption by each Member of its Units.

 

(z)            Approvals.  Borrower shall have delivered a letter or
other acknowledgment in form and substance satisfactory to Agent (i) from
ING Member and FC 41st Street that the Loans are an “Acceptable Construction
Loan” for purposes of the FC Operating Agreement and (ii) from ING Member
approving the Equity Contribution and waiving its right to contest any Draw
Request.

 

(aa)         Other
Documents.  Borrower shall have
delivered such other documents and certificates as Agent or its counsel may
reasonably require.

 

SECTION 4.02       Conditions of Advances.  The obligation of the Lenders to make the
initial Advance (the “Initial Construction Advance”) or any subsequent
Advances (unless any such condition precedent is waived by Agent in its sole
discretion (subject to Section 8.03 hereof)) of the Building Loan shall be
subject to the following conditions precedent:

 

(a)           Prior
Conditions Satisfied.  All
conditions precedent set forth in Section 4.01 shall continue to be
satisfied as of the date of each Advance, provided that all such conditions
precedent shall be deemed to be continued to be satisfied and Borrower shall
have no obligation to deliver or satisfy any such conditions except that
Borrower shall be obligated to deliver the documents referred to in
Sections 4.01(f) and (g) hereof (if not previously delivered) and any
amendments, modifications, substitutions, replacements or supplements to the
documents referred to in Sections 4.01(c)-(h) and (k)-(l) hereof.

 

(b)           Performance;
No Default.  On the date of such
Advance there shall exist no Noticed Default or Event of Default hereunder and
no Noticed Default or Event of Default under and as defined in the Project Loan
Agreement.

 

(c)           Representations
and Warranties.  The representations
and warranties made by Borrower Entities in the Building Loan Documents, or
otherwise 

 

56

 

made by or on behalf of Borrower Entities in
connection therewith after the date thereof, shall have been true and correct
in all material respects on the date on which made and shall also be true and
correct in all material respects on the date of such Advance, except
(a) in each case to the extent that the failure of any such representation
or warranty to be true and correct in all material respects on the date of such
Advance does not have, and is not reasonably likely to have, a Material Adverse
Effect (it being agreed, however, that if the facts causing such failure of any
representation or warranty to be untrue or incorrect shall constitute a Default
or Event of Default, nothing herein shall be construed to constitute a waiver
by Agent of such Default or Event of Default) and (b) that the
representations made in Section 6.04(b) and the second sentence of
Section 6.05(a) and the representations made in Section 6.10 and
Section 6.13 with respect to the Guarantors need not be true and correct
on the date of each Advance.

 

(d)           No
Damage.  The Project shall not have
been injured or damaged by fire, explosion, accident, flood or other casualty,
or been subject to any condemnation, governmental taking or eminent domain
proceeding (other than the “Condemnation” as defined in the Ground Lease and
the Severance Subleases) unless Agent shall have received (or shall have
received evidence reasonably satisfactory to Agent that Agent will receive in a
timely manner) Net Proceeds, Net Awards or Proceeds and/or a Completion Deposit
sufficient in the reasonable judgment of Agent to effect the satisfactory
restoration of the Project, “Substantial Completion” (as defined in the Ground
Lease) to be achieved by no later than the Fixed Substantial Completion Date
(subject to Unavoidable Delay) and Final Completion to be achieved no later
than the Maturity Date, which restoration shall be governed by the terms of the
Building Loan Mortgage.

 

(e)           Receipt
by Agent and Construction Consultant. 
Agent and Construction Consultant shall have received the following at
least 10 Business Days prior to (or, in the case of clause (3), on) the
Requested Advance Date:

 

(1)           Draw Request.  A Draw Request (which shall also be
submitted to the Disbursement Agent, but only to the extent Agent has informed
Borrower that the Advance in question will be advanced by Disbursement Agent
pursuant to Section 5.02(b) hereof) specifying the date proposed for such
Advance, which date must be a Business Day (the “Requested Advance Date”);

 

(2)           Schedule of Other Funding
Sources.  If applicable, a statement
as to the amount of Building Loan Costs and Project Loan Costs intended to be
paid or funded on the Requested Advance Date with Other Funds;

 

(3)           Title Continuation Letter.  A continuation letter with respect to the
Title Insurance Policy theretofore delivered, which continuation letter shall
be substantially in the form required by the Construction Loan Disbursement
Agreement and shall show no exceptions to title other than Permitted
Exceptions;

 

57

 

(4)           Lien Waivers.  Duly executed lien waivers in substantially
the form set forth in Exhibit L hereto (or such other form as may be
reasonably approved by Agent) from all Lien Waiver Parties for work performed,
and for goods, labor, materials and/or services supplied, through the last day
of the period covered by the Draw Request, except (A) that in the case of
work performed and goods, labor, materials and/or services supplied for which
payment thereof is requested, such duly executed lien waivers may be
conditioned on such payment, (B) for any Retainage which is allowed to be
deducted in accordance with the terms hereof and (C) to the extent that Agent
has agreed to accept partial lien waivers in accordance with the standards set
forth in the second sentence of Section 4.01(q);

 

(5)           Architect’s and General
Contractor’s Certificates.  A
General Contractor’s Certificate from the General Contractor and an Architect’s
Certificate from the Lead Architect;

 

(6)           Payment and Performance Bonds.  Payment and Performance Bonds covering
(i) all Hard Cost Contracts with contract prices equal to or in excess of
$500,000.00, after taking into account all amendments thereto and Change Orders
and (ii) to the extent not covered by the foregoing clause (i), at
least 70% of the Hard Costs (clauses (i) and (ii) collectively, “Payment and Performance Bond
Contracts”). 
Notwithstanding anything to the contrary contained herein, (x) in no
event shall the Guaranteed Maximum Price Contract be a Payment and Performance
Bond Contract for purposes of clause (i) of the preceding sentence and (y) to
the extent that the work to be performed under a Payment and Performance Bond
Contract has been completed in full (and the applicable contractor has
delivered a final, unconditional lien waiver with respect thereto) prior to the
Initial Advance, then for all purposes hereunder a Payment and Performance Bond
shall be deemed to have been obtained with respect to such contract;

 

(7)           Interest Rate Caps.  As a condition to the Initial Advance only,
and only if Breakeven Leasing has not been achieved by the Requested Advance Date
for the Initial Advance, Borrower shall have delivered to Agent an interest
rate cap in form and substance acceptable to Agent (the “Initial Advance Interest Rate Cap”) between
Borrower and a counterparty acceptable to Agent which shall cap the LIBOR Rate
for the Building Loan and Project Loan until the Maturity Date (without giving
effect to any extensions under Section 3.19(a) hereof) at the rates, and
for the corresponding periods set forth in, Schedule 2 hereto, together with
(i) a collateral assignment of the Initial Advance Interest Rate Cap in
the form of Exhibit M hereto
(an “Assignment of Interest Rate Cap”),
(ii) a consent by the counterparty thereto to such collateral assignment
and (iii) an opinion, in form and substance and from counsel reasonably
acceptable to Agent, as to the due authorization, execution and delivery by 

 

58

 

Borrower and
enforceability of, and other customary matters with respect to, the Initial
Advance Interest Rate Cap and the Assignment of Interest Rate Cap, but in no
event as to any matters with respect to such counterparty (other than
enforceability of the Initial Advance Interest Rate Cap against such
counterparty).  If Breakeven Leasing has
been achieved by the Requested Advance Date with respect to the Initial Advance
(and therefore Borrower shall not have been required to deliver the Initial
Advance Interest Rate Cap), Borrower shall have delivered to Agent the Future
Advance Interest Rate Caps and other items as and to the extent required by
Section 7.20 hereof as of the Requested Advance Date as a condition to any
subsequent Advance;

 

(8)           Application for Payment.  From each Major Contractor (including the
General Contractor), a completed and itemized Application and Certificate for
Payment in the form of AIA Document No. G702 (including AIA Form G703 as
an attachment thereto), or similar form reasonably approved by Agent,
containing the required certification of such Major Contractor and Borrower’s
Architects, together with all invoices relating to all items of Building Loan
Costs covered thereby and further accompanied by a cost breakdown showing the
cost of work on, and the cost of materials incorporated into, the Project to
the date of the requisition.  The cost
breakdown shall also show the percentage of completion of each line item in the
Budgets.  All such applications for
payment shall also show all contractors and subcontractors, including Major
Subcontractors, by name and trade, the total amount of each contract and/or
subcontract, the amount theretofore paid to each contractor and/or
subcontractor as of the date of such application, and the amount to be paid
from the proceeds of the Advance to each contractor and/or subcontractor;

 

(9)           Changes to Budgets.  An update of the Budgets reflecting all
actual and anticipated costs and in compliance with Section 3.02 hereof,
which update must be approved by Agent, such approval not to be unreasonably
withheld or delayed; provided that nothing in this Section 4.02(e)(9)
shall entitle Agent to request, or shall permit Agent to condition its consent
to any change(s) in the Budgets on (x) an increase in any line item in the
Budgets for tenant improvements or leasing commission costs and/or (y) an
increase in any interest line item on account of any delay in achieving Stabilized
Occupancy.  The proviso clause of the
preceding sentence shall not apply with respect to any Advance made on or after
the Original Maturity Date (after giving effect to any extensions under Section
3.19(b) hereof) if, as of the Original Maturity Date, the ratio (expressed as a
percentage) of the Remaining Loan Amount to the Appraised Value of the FC Units
is more than 70%.  Nothing in this
Section 4.02(e)(9) shall prohibit Agent from reasonably withholding its consent
to any line item decrease in any of the line items referred to in clauses (x)
and (y) above;

 

59

 

(10)         Change Orders.  Copies of all Change Orders, regardless of
whether the amount of such Change Order and/or any extension of time with
respect thereto has been agreed to and regardless of whether work on such
Change Order has commenced) to the extent not previously delivered to Agent,
and, to the extent reasonably requested by Agent, copies of all inspection or
test reports and other documents relating to the construction of the Project
not previously delivered to Agent or Construction Consultant;

 

(11)         Disbursement Schedule and
Construction Schedule.  An update of
the Disbursement Schedule (but only if requested by Agent) and Construction
Schedule, which updates must be approved by Agent, which approval shall
not be unreasonably withheld or delayed (provided that with respect to the
Disbursement Schedule only, Agent shall be deemed to have approved any best
estimate update made in good faith by Borrower).  Each such update must reflect all Change Orders, regardless of
whether the amount of any such Change Order and/or any extension of time with
respect thereto has been agreed to and regardless of whether work on such
Change Order has commenced.  If any such
update includes changes to the Disbursement Schedule, such update must be
accompanied by evidence reasonably satisfactory to Agent that the Interest Rate
Cap(s) (but only to the extent required by the terms hereof) will be modified,
to the extent necessary, to conform with such changes, and if any such update
includes changes to the Construction Schedule, such update must be accompanied
by evidence reasonably satisfactory to Agent that such change does not make it
likely that Borrower will fail to achieve “Substantial Completion” (as defined
in the Ground Lease) by the Fixed Substantial Completion Date (subject to
Unavoidable Delay) and Final Completion by the Maturity Date;

 

(12)         Governmental and Third Party
Approvals.  To the extent not
previously delivered, all Governmental Approvals and all other third party
consents and approvals necessary for the Project as contemplated by the Plans
and Specifications, including, without limitation, a building permit; and

 

(13)         Stored Materials.  The letter referred to in
Section 3.04(c) hereof, to the extent that such Advance includes Loan
proceeds for Stored Materials, but only if Borrower shall have acquired Stored
Materials that are not subject to any previous letter delivered to Agent
pursuant to said Section.

 

(f)            Material
Contracts; Leases.  Agent shall have
received true, correct and complete photocopies of all Material Contracts and
Leases in effect on the date of the Draw Request, to the extent not previously
delivered to Agent, certified by Borrower or the Borrower Entity which is a
party thereto.  Each such Material
Contract shall have been approved by Agent in accordance with Section 7.13
hereof; and a consent 

 

60

 

to the collateral assignment of any Material Contract,
if requested by Agent, in form and substance reasonably satisfactory to Agent,
shall be delivered to Agent, to the extent not previously delivered to Agent.

 

(g)           Evidence
of Sufficiency of Funds; Construction Consultant Approval.  Each Budget shall be In Balance.  Agent shall have received written
certification from the Construction Consultant to the effect that in its
reasonable opinion the condition set forth in the immediately preceding
sentence has been satisfied; that the work theretofore completed was completed
to its satisfaction substantially in accordance with the Plans and
Specifications and in accordance with all Legal Requirements; that “Substantial
Completion” (as defined in the Ground Lease) shall be achievable by the Fixed
Substantial Completion Date (subject to Unavoidable Delay) and Final Completion
shall be achievable by the Maturity Date; as a condition to the Initial Advance
only, that Borrower shall be able to Commence Initial Construction (as defined
in the Ground Lease) of Tenant’s Construction Work (as defined in the Ground
Lease) by the Fixed Construction Commencement Date (as defined in the Ground
Lease) (subject to Unavoidable Delay); and that each Budget and each line item
thereof is the best reasonable projection of all remaining Building Loan Costs
and Project Loan Costs and all remaining costs covered by each line item, as
applicable.  Such certification shall
also cover such other information as Agent may from time to time reasonably
request.

 

(h)           Other
Funding Sources.  No later than
11:00 A.M. (New York City time) on the Requested Advance Date, all Other
Funds covered by the statement described in Section 4.02(e)(2) hereof
shall have been received by Agent (in the case of Advances disbursed in
accordance with Section 5.02(b)(i) hereof) or received by Disbursement Agent
(in the case of Advances disbursed in accordance with Section 5.02(b)(ii)
hereof).

 

(i)            Lien
Law.  To the extent required by the
Lien Law, Borrower shall have delivered an update to the Lien Law Affidavit, a
new Notice of Lending and a new Notice of Assignment.

 

(j)            Borrower
LCs.  (i) the Borrower LCs
shall be in full force and effect or shall have been fully drawn upon or
(ii) to the extent clause (i) is not the case, the appropriate Borrower LC
Deposit shall have been made in accordance with Section 7.54 hereof, and, if
requested by Agent, reasonable evidence of clause (i) or clause (ii), as
applicable.

 

(k)           Deliveries
to Third Parties.  To the extent not
previously delivered, evidence reasonably satisfactory to Agent that Borrower
has complied with its delivery obligations set forth in Section 7.56 hereof.

 

(l)            Accounts.  Borrower shall have complied with its
obligations under Section 7.57 hereof.

 

(m)          Property
Taxes.  Either (i) Lot 15 shall have
been subdivided in accordance with the last sentence of Section 7.43
hereof, (ii) all Property 

 

61

 

Taxes assessed against Lot 15 that are then due and
payable shall have been paid in full or (iii) the title continuation letter
referred to in Section 4.02(e) shall not contain any exceptions to title
insurance coverage for Property Taxes assessed against Lot 15.

 

(n)           Other
Documents.  Borrower shall have
delivered such other information, documents and certificates as Agent or its
counsel may reasonably require.

 

SECTION 4.03       Conditions of Final Construction
Advance.  In addition to the
conditions set forth in Section 4.02 above, each Lender’s obligation to
make the final Advance for NYTC Units Budget costs or for FC Units Budget
costs, or for the Loans, pursuant to this Agreement shall be subject to
satisfaction of the following additional conditions (unless waived by Agent in
its sole discretion (subject to Section 8.03) or unless all of the
Indebtedness is being paid in full at the time of the making of the final
Advance):

 

(a)           Completion.  With respect to the final Advance for either
Budget, Final Completion of the applicable Units(s) shall have occurred or will
occur upon the making of such Advance.

 

(b)           Final
Survey.  With respect to the final
Advance of the Loans, if then prepared and available, receipt by Agent of a
final Survey reasonably acceptable to Agent showing the as built location of
the Project (and if not so prepared and available Borrower hereby covenants to
deliver such Survey to Agent within one hundred and twenty (120) days after the
date of the final Advance).

 

(c)           Payment
of Costs.  With respect to the final
Advance for either Budget, evidence reasonably satisfactory to Agent that all
Project Loan Costs and Building Loan Costs allocable to the applicable Units
have been paid in full (or will be paid out of the funds requested to be
advanced) and that no party claims or has a right to claim any statutory or
common law lien arising out of the construction of such Units or the supplying
of labor, goods, material and/or services in connection therewith.

 

(d)           Other
Documents.  Such documents, letters,
affidavits, reports and assurances, as Agent or Agent’s counsel may reasonably
require.

 

SECTION 4.04       Contributions of Initial Required
Equity Funds.

 

(a)           Until
such time as all Initial Required Equity Funds have been contributed and the
Initial Construction Advance is made, Borrower shall, at least one
(1) time per calendar month (and, in any event, at least ten (10) Business
Days prior to any date (an “Equity Infusion Date”) on which Borrower desires to
(i) obtain proceeds of the Equity Contribution for purposes of
contributing Initial Required Equity Funds and/or (ii) contribute other
Initial Required Equity Funds (the amount that Borrower so desires, the “Equity Infusion”)),
provide to Agent (y) the documents required pursuant to
Sections 4.02(e)(1), (2), (4), (5), (8), (9), (10) and (11), provided that
all references to the 

 

62

 

making of an Advance in such provisions shall instead
be deemed to be references to the making of an Equity Infusion, mutatis
mutandis and (z) a current title continuation search for the Property.

 

(b)           No
later than the Business Day immediately preceding each Equity Infusion Date,
Agent shall notify Borrower and NYTC Member whether the deliveries required by
Section 4.04(a) have been made and whether, to the best of Agent’s
knowledge, the conditions set forth in Sections 4.02(a), (b), (c), (d),
(e) (but only to the extent the deliveries required pursuant thereto are
subject to Agent’s approval), (f), (g), (i), (j), (k), (l), (m) and (n) have
been satisfied (with all references in said Sections to an Advance being
deemed references to the Equity Infusion, mutatis mutandis).  To the extent that Borrower and/or NYTC
Member shall desire to make any Equity Infusion (regardless of whether or not
such deliveries shall have been made and/or conditions shall have been
satisfied), Borrower and/or NYTC Member shall expend (or cause to be expended)
the Equity Infusion on Building Loan Costs or Project Loan Costs.  Agent shall suffer no penalty or liability
to any Borrower Entity under this Section 4.04(b) (including for failure
to give any notice provided for under this Section 4.04(b)).

 

(c)           All
Equity Infusions actually used to pay for Building Loan Costs or Project Loan
Costs pursuant to this Section 4.04 shall be deemed to be, and shall be,
Initial Required Equity Funds that have been contributed, regardless of
whether, as of the date such contribution is made, (i) the conditions
referred to in Section 4.04(b) hereof have been satisfied or (ii) Agent
shall have notified Borrower and the NYTC Member in accordance with the first
sentence of Section 4.04(b) hereof.

 

SECTION 4.05       Interest Advances.  Notwithstanding the provisions of
Sections 4.01, 4.02 and 4.03, Advances for the payment of interest due
under the Building Loan Notes shall be made in accordance with
Section 5.03(b) hereof.

 

ARTICLE 5

METHOD OF DISBURSEMENT OF LOAN PROCEEDS

 

SECTION 5.01       Administration.  As compensation for serving as Agent,
Borrower shall pay Agent the Administration Fee.

 

SECTION 5.02       Procedure for Advances.

 

(a)           Submission
of Draw Requests; Notification of LIBOR Rate.  Draw Requests may be submitted to Agent no more frequently than
once every fifteen (15) days and not more than once per calendar month.  Not less than three (3) Business Days
prior to the Intended Advance Date, Agent shall deliver written notice to each
Lender at the address specified by each Lender from time to time, which notice
shall include the Intended Advance Date and such Lender’s ratable share of such
Advance.  On the Business Day
immediately prior to the Start Day, Agent shall deliver written notice to each
Lender and Borrower informing each Lender and Borrower of the LIBOR Rate for
the upcoming calendar month Interest Period for all Outstanding Principal and any
Advance made during such Interest Period. 
However, Agent shall 

 

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suffer no penalty or liability to Borrower for failure
to give any such notice to Borrower. 
Unless otherwise notified by Agent, each Lender may assume that all
conditions to such Advance are satisfied on the Intended Advance Date.

 

(b)           Disbursement
Procedures.

 

(i)            Provided that Agent has not elected,
in accordance with Section 5.02(b)(ii) hereof, to disburse Advances through the
Disbursement Agent in accordance with the procedures set forth in paragraph 2
of the Construction Loan Disbursement Agreement, not later than 11:00 A.M. New
York City time on the Intended Advance Date, each Lender shall make available
to Agent such Lender’s ratable portion of such Advance in same-day funds and,
if applicable, Agent shall make available, in same day funds to the extent in
its possession, the Other Funds and Borrower shall make available to Agent all
other Other Funds in same-day funds, in each case to the extent shown in the
delivery referred to in Section 4.02(e)(2) hereof, and upon fulfillment of the
applicable conditions in this Agreement and paragraph 1 of the Construction
Loan Disbursement Agreement, Agent shall disburse such Advance to Borrower.

 

(ii)           Agent may elect to disburse Advances
through the Disbursement Agent pursuant to paragraph 2 of the Construction Loan
Disbursement Agreement (A) during the continuance of a Default or Event of
Default, (B) subject to Section 4.01(q) hereof, upon its receipt of reasonable
evidence that Borrower failed to promptly pay the applicable amounts out of any
Advance to the General Contractor or any other contractor or subcontractor
whose costs were the basis of the applicable Draw Request or that any
contractor or subcontractor whose costs were the basis of the applicable Draw
Request have not been paid, or (C) if Borrower has taken any actions, or failed
to take any actions, which have resulted, or would reasonably be expected to
result, in the filing or assertion of any Lien on the Premises (other than any
Permitted Exception), provided that nothing contained in this sentence shall be
construed to require Agent or any Lender to make an Advance upon the occurrence
of any of the events described in the foregoing clauses (A), (B) and (C).  If Agent makes such an election in
accordance with the immediately preceding sentence, Agent shall notify Borrower
and each Lender and from and after such date until Agent notifies Borrower and
each Lender that it has decided to no longer make the election described in this
Section 5.02(b)(ii), (A) each Lender shall, not later than 11:00 A.M. New
York City time, on each Intended Advance Date following Agent’s delivery of
such notice, make available to Disbursement Agent such Lender’s ratable portion
of such Advance in same-day funds, and, if applicable, Agent shall make
available to Disbursement Agent in same day funds, to the extent in its
possession, the Other Funds, and Borrower shall make available to Disbursement
Agent in same day funds, all other Other Funds, in each case to the extent
shown in the delivery referred to in Section 4.02(e)(2) hereof, and upon
fulfillment of the applicable conditions in this Agreement and paragraph 2 of
the Construction Loan Disbursement Agreement, Agent will request the
Disbursement Agent to disburse such funds in accordance with the further terms 

 

64

 

and conditions contained in said paragraph of the
Construction Loan Disbursement Agreement.

 

(c)           Defaulting
Lenders.

 

(i)            If any Lender does not comply with
its obligations under Section 5.02(b) above (any such Lender, a “Defaulting Lender”),
the other Lenders (including GMACCM), or any of them, may, in their sole
discretion, elect to deliver to Disbursement Agent on the Requested Advance
Date all or any portion of the Defaulting Lender’s ratable portion of the
applicable Advance not made available by the Defaulting Lender (such portion
not made available, a “Deficiency”), in which event Defaulting Lender agrees to
repay upon demand to each of the Lenders who has advanced a portion of the
Deficiency the amount advanced on behalf of the Defaulting Lender, together
with interest thereon at the Default Rate. 
If more than one Lender elects to advance a portion of the Deficiency,
such Lenders’ advances shall be made based on the relative ratable shares of
each advancing Lender or as otherwise agreed to by such Lenders.  Each of the Lenders agrees that any of the
other Lenders and Borrower shall have the right to proceed directly against any
Defaulting Lender in respect of any right or claim arising out of such
Defaulting Lender’s Deficiency, provided that Borrower shall not have such
right if one or more of the other Lenders advances the entire Deficiency as
described above.  In the event the
Defaulting Lender fails to advance or repay the Deficiency (with interest at
the Default Rate, if applicable), on or prior to the date of the next
succeeding Advance, the entire interest of said Defaulting Lender in the Loans
shall be subordinate to the interests of the other Lenders and all payments
otherwise payable to the Defaulting Lender shall be used to advance or repay
the Deficiency, as applicable, until such time such Defaulting Lender advances
or repays all Deficiencies (including interest at the Default Rate, if
applicable).

 

(ii)           The failure of any Lender to pay any
Deficiency shall not relieve any other Lender of its obligation, if any,
hereunder to make its ratable or other agreed upon portion of the Advance on
the date of such Advance, but no Lender shall be responsible for the failure of
any Lender to make its ratable or other agreed upon portion of the Advance to
be made by such other Lender on the date of any Advance, provided, however,
that Lenders shall be obligated to fund the balance of the then current Advance
(i.e., excluding the Deficiency) in the manner required hereunder.

 

SECTION 5.03       Funds Advanced; Capitalized Interest.  (a) 
All proceeds of all Advances shall be used by Borrower only for the
purposes for which such Advances were made. 
Borrower shall not commingle such funds with other funds of Borrower.

 

(b)           Unless
agreed to otherwise by Agent and a Lender, each Lender is hereby irrevocably
authorized and agrees to subtract from the unadvanced Building Loan proceeds,
on each interest payment date, without the further approval of 

 

65

 

Borrower, the interest due and payable to itself on
each such date.  Any amounts so
subtracted shall be deemed to be Advances hereunder.

 

SECTION 5.04       Advances Do Not Constitute a Waiver.  No Advance shall constitute a waiver of any
of the conditions of Lenders’ obligation to make further Advances nor, in the
event Borrower is unable to satisfy any such condition, shall any Advance have
the effect of precluding Agent from thereafter declaring a Default or Event of
Default hereunder.

 

SECTION 5.05       Trust Fund Provisions.  All proceeds advanced hereunder shall be
subject to the trust fund provisions of Section 13 of the Lien Law.  The Lien Law Affidavit is made pursuant to
and in compliance with Section 22 of the Lien Law, and, if so indicated in
said Affidavit, Building Loan proceeds will be used, in part, for reimbursement
for payments made by the Borrower prior to the date hereof and prior to the
Initial Construction Advance hereunder but subsequent to the commencement of
the construction and equipping of the Project for items constituting Costs of
the Improvement.

 

ARTICLE 6

REPRESENTATIONS AND WARRANTIES OF BORROWER

 

To induce Lenders to make the Building Loan and to
induce Agent to enter into this Agreement and the other Building Loan
Documents, for itself and on behalf of Lenders, and to perform Agent’s and
Lenders’ obligations hereunder and thereunder, Borrower hereby represents and
warrants to Agent for the benefit of Lenders that:

 

SECTION 6.01       Validity of Building Loan Documents.  The Building Loan Documents are in all
respects valid and legally binding obligations, enforceable against each
Borrower Entity which is a party thereto in accordance with their respective
terms (subject to the effects of bankruptcy, insolvency, reorganization, moratorium
or other similar laws affecting the enforcement of creditors’ rights
generally).  The Building Loan Documents
are not subject to any right of rescission, set-off, counterclaim or defense by
any Borrower Entity, including the defense of usury.  No Borrower Entity has asserted any right of rescission, set-off,
counterclaim or defense with respect to the Building Loan Documents.

 

SECTION 6.02       Title.  Borrower has good and marketable title to a ground leasehold
estate in the premises demised under the Ground Lease and the Members
collectively have good marketable title to the premises demised under the
Severance Subleases, in each case subject to no Liens other than the Permitted
Exceptions.  Borrower has, or will have
at the time of payment therefor, good and marketable title to the Personal
Property and no Lien has been or will be executed in favor of any Person other
than Agent with respect to any of the Personal Property other than the
Permitted Exceptions.  Borrower has no
knowledge of any claims for payment for work, labor or materials affecting the
Mortgaged Property which are or may become a 

 

66

 

Lien prior to, or of
equal priority with, the lien created by any Security Document.  The provisions of each Security Document are
effective to create, in favor of Agent for the benefit of Lenders, a legal,
valid and enforceable lien, subject only to the Permitted Exceptions, on or
security interest in all of the collateral described therein (subject to the
effects of bankruptcy, insolvency, reorganization, moratorium or other similar
laws affecting the enforcement of creditors’ rights generally), and when the
appropriate recordings and filings have been effected in public offices, each
of the Security Documents will constitute a perfected lien on and security
interest in all right, title, estate and interest in the collateral described
therein, prior and superior to all other Liens, except as permitted under the
Building Loan Documents and the Permitted Exceptions.

 

SECTION 6.03       Absence of Conflicts.  The execution and delivery of the Building
Loan Documents by Borrower Entities to the extent each is a party thereto do
not, and the performance and observance by Borrower Entities of their
respective obligations thereunder will not, contravene or result in a breach of
or default under (a) any provision of any Borrower Entity’s organizational
documents, (b) any Legal Requirements applicable to any Borrower Entity,
or to the Mortgaged Property or the use or operation thereof, (c) any
decree or judgment binding on any Borrower Entity, or its assets, or
(d) any agreement or instrument binding on any Borrower Entity, or its
assets.  The execution and delivery of
the Building Loan Documents by Borrower Entities to the extent each is a party
thereto, and the performance and observance by each Borrower Entity of its
obligations thereunder will not result in the creation or imposition of any
Lien (other than pursuant to the Building Loan Documents or the Permitted
Exceptions) upon any of its assets, subject to the effects of bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting the
enforcement of creditors’ rights generally.

 

SECTION 6.04       Pending Litigation.  (a) 
Except for matters disclosed to Agent in the Disclosure Side Letter (the
“Pending Litigations”),
there are no litigations, writs, injunctions, orders, judgments, actions, suits
or proceedings existing or pending or threatened in writing against the
Mortgaged Property, Borrower or any Member. 
Borrower hereby represents and warrants that except as disclosed to
Agent in the Disclosure Side Letter, all such disclosed items are fully insured
by its Policies (except for the deductibles applicable thereto).

 

(b)           Other
than as disclosed in filings made by each Guarantor with the Securities and Exchange
Commission, there are no litigations, writs, injunctions, orders, judgments,
actions, suits or proceedings existing or pending or threatened against such
Guarantor which have a material likelihood of success and would, if determined
adversely, result in a Material Adverse Effect.

 

SECTION 6.05       Legal Requirements.

 

(a)           None
of Borrower, any Member or the Mortgaged Property is in violation of any Legal
Requirement relating to such entity or the Mortgaged Property.  No Guarantor is in violation of any Legal
Requirement which would result in a Material Adverse Effect.

 

67

 

(b)           Each
Borrower Entity and their Affiliates and, to the Knowledge of Borrower after
having made reasonable inquiry, each Tenant at the Property and each managing
agent and leasing agent of any portion of the Property (i) is not currently
identified on the OFAC List, and (ii) is not a Person with whom a citizen of
the United States is prohibited to engage in transactions by any trade embargo,
economic sanction, or other prohibition of United States law, regulation, or
Executive Order of the President of the United States.

 

SECTION 6.06       Compliance with All Legal Requirements.  The current zoning law and/or restrictive
covenants and declarations covering the Premises and each Public Project
Agreement permit, as of right, the construction of the Project in accordance
with the Plans and Specifications and each other Public Project Agreement and,
upon completion of such construction, the operation, use and occupancy thereof
contemplated by the Public Project Agreements and the Plans and
Specifications.  The Mortgaged Property
currently is and upon completion of such contemplated construction, the use
thereof will be, in all respects in compliance with all Material Contracts, all
Public Project Documents and all Legal Requirements, and such compliance is not
dependent on any land, improvements or facilities not a part of the Mortgaged
Property.  Borrower has all Governmental
Approvals required to have been obtained to date and all third party consents
and approvals necessary for the construction of the Project or any part thereof
or the commencement or continuance of construction thereon, as the case may be,
including but not limited to, where appropriate, all required environmental
permits, all of which have been issued, are in full force and effect and are
not subject to any revocation, amendment, release, suspension, forfeiture or
the like.  Except for the Pending
Litigations, there are no pending, or to the Knowledge of Borrower, threatened
in writing, litigations, writs, injunctions, orders, judgments, actions, suits
or proceedings (a) to revoke, attach, invalidate, rescind or modify any
such Governmental Approval or third party consent or approval, or the zoning
and/or restrictive covenants applicable to the Premises or any part thereof, as
currently existing and as intended to exist upon completion of such
contemplated construction or (b) which have any chance (other than an
immaterial chance) of being determined adversely to Borrower, and if so
determined adversely, would materially delay, interfere with or otherwise have
any material adverse effect on such contemplated construction or the
Construction Schedule.

 

SECTION 6.07       Organization Status and Authority.  (a)  (i)  Each of Borrower and the Members is a limited liability company
duly organized, validly existing and in good standing under the laws of the
State of New York; (ii) Each of Borrower and the Members has the
power, authority and legal right (w) to own and operate its properties and
assets, (x) to carry on the business now being conducted and proposed to
be conducted by it, (y) to execute, deliver and perform its obligations
under the Building Loan Documents to which it is a party, and (z) to
engage in the transactions contemplated by the Building Loan Documents to which
it is a party; (iii) all Building Loan Documents have been duly
authorized, executed and delivered by all necessary parties on behalf of
Borrower and each Member, to the extent a party thereto; and (iv) each of Borrower
and the Members possesses all rights, licenses, permits and authorizations,
governmental or otherwise, presently necessary to entitle it to own its
property and to transact the 

 

68

 

businesses in which it is
now engaged, and its sole business has been and is the ownership of the
Mortgaged Property (in the case of Borrower) or a membership interest in
Borrower (in the case of each Member).

 

(b)           Subject
to Section 7.32(b) hereof, (i) FC Member, which is 100% jointly
owned, directly or indirectly by FC Guarantor, Bruce Ratner, trusts for the
benefit of family members of Bruce Ratner and ING, is, and for the term of the
Building Loan (subject to Section 7.50 hereof) shall be, a member of
Borrower, (ii) NYTC Member, which is 100% owned, directly or indirectly
by NYTC Guarantor, is, and for the term of the Building Loan (subject to
Section 7.46 hereof) shall be, a member of Borrower, and (iii) the
Members own in the aggregate 100% of the membership interests in Borrower.

 

SECTION 6.08       Availability of Utilities.  Except as set forth on Schedule 3, all utility services and
facilities necessary and sufficient for the contemplated construction and
development of the Premises in accordance with the Public Project Agreements
and the Plans and Specifications and, upon completion of construction, the
operation, use and occupancy of the Premises for its intended purposes,
including, but not limited to, water supply, storm and sanitary sewer
facilities, gas, electric and telephone facilities, and drainage, are presently
available to the boundaries of the Premises through dedicated public rights of
way or through perpetual private easements, approved by Agent, with respect to
which the Building Loan Mortgage creates a valid, binding and enforceable first
priority lien and security interest.

 

SECTION 6.09       Condition of Property.  Since the execution and delivery of the
Ground Lease, there has not, to the Knowledge of Borrower, been any bodily
injury or property damage occurring in or upon the Premises as a result of any
fire, explosion, accident, flood or other casualty.  With respect to the accidents previously disclosed to Agent,
Borrower hereby represents and warrants that all such accidents are fully
insured by its Policies (except for the deductibles applicable thereto).  Except for matters disclosed to Agent in the
Disclosure Side Letter, there are no proceedings pending, or, to the Knowledge
of Borrower, threatened or contemplated, to acquire by power of condemnation or
eminent domain, the Mortgaged Property, or any interest therein, or to enjoin
or similarly prevent the contemplated construction or use of the Mortgaged
Property.

 

SECTION 6.10       Accuracy of Documents.  To the Knowledge of Borrower, (a) all
documents furnished to Agent by or on behalf of any Borrower Entity, General
Contractor, Borrower’s Architects, any other Major Contractor and any Major
Subcontractor, as part of or in support of the Building Loan application or
pursuant to this Agreement or any of the other Building Loan Documents, are
true, correct and complete in all material respects as of the date of delivery
of each such document and (b) as of the Closing Date, there have been no
material adverse changes with respect to such matters since such date, unless
the same have been superseded by more recent dated material(s) delivered to
Agent.

 

69

 

SECTION 6.11       Encroachments.  There are no material encroachments on the
Premises, and the Premises do not encroach upon any adjoining land or adjoining
street, other than as set forth in the Permitted Exceptions.

 

SECTION 6.12       Brokerage Commissions.  Any brokerage commissions, finder’s fees or
similar payments owed by any Borrower Entity (collectively, the “Brokerage Commissions”)
due in connection with the transactions contemplated hereby have been paid to
the extent due and payable and any such Brokerage Commissions coming due in the
future will be promptly paid by such Borrower Entity.  Agent represents and warrants to Borrower that it has not dealt
with any broker in connection with the transactions contemplated hereby.

 

SECTION 6.13       Financial Statements and Other
Information.  The financial
statements and supporting materials thereto (other than projections) of each
Borrower Entity previously delivered to Agent, if any, are true and correct as
of the date of each such statement, have been prepared as of the date of each
such statement in accordance with generally acceptable accounting principles
consistently applied, and fairly present the respective financial conditions of
such Borrower Entity as of the respective dates thereof and the results of
their respective operations for the periods covered thereby; no change has
occurred in the assets, liabilities, or financial conditions reflected therein
since the respective dates thereof so as to cause a Material Adverse Effect;
and no additional material borrowings have been made by Borrower, any Member or
FC Guarantor since the date thereof (other than the borrowing contemplated
hereby, the Extension Loan, if then made, and, in the case of FC Guarantor, amounts
previously disclosed in filings with the Securities and Exchange Commission and
amounts that will be disclosed in the next filing with the Securities and
Exchange Commission but which are prohibited from being disclosed at the
current time under applicable securities laws).  With respect to each Borrower Entity, there exist no contingent
liabilities, liabilities for taxes, unusual forward or long term commitments or
unrealized or anticipated losses from any unfavorable commitments, except as
referred to or reflected in said financial statements and supporting materials
and except to the extent any of the foregoing would not cause a Material
Adverse Effect.  To the knowledge of the
applicable Borrower Entity, neither the aforesaid financial statements or supporting
materials furnished to Agent in connection with or related to the transactions
contemplated hereby, nor any representation or warranty in any Building Loan
Document, contains any untrue statement of a material fact or omits to state a
material fact or circumstance necessary in order to make the statements
contained therein or herein not materially misleading.

 

SECTION 6.14       Tax Returns.  All federal, state and other tax returns of
all Borrower Entities (other than the Guarantors) required by law to be filed
have been filed (or lawful extensions of such filing deadlines have been
obtained), and all applicable federal, state and other taxes, assessments and
other governmental charges upon Borrower Entities (other than the Guarantors)
or their respective properties which are due and payable have been paid.

 

70

 

SECTION 6.15       Material Contracts.  (a) 
Except for the Permitted Exceptions and the Material Contracts which
have been delivered to Agent, there are no contracts of any kind or type
whatsoever (whether oral or written, formal or informal) relating to the
Mortgaged Property or any part thereof which would constitute Material
Contracts.  Neither Borrower nor any
Member is in default under any Material Contract to which Borrower or either
Member is a party or Permitted Exception, and to the Knowledge of Borrower, no
third party is in default in any material respect thereunder.  True, correct and complete copies of all
Material Contracts have been delivered to Agent.  Each Material Contract that is a Major Subcontract is, to the
knowledge of Borrower, in full force and effect and each other Material
Contract is in full force and effect and is valid and enforceable in all
respects (subject, in each case, to the effects of bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting the enforcement of creditors’ rights
generally).  As of the Closing Date,
there are no Material Contracts under clause (k) of the definition of
Material Contracts.

 

(b)           Borrower
delivered to Ground Lessor a copy of the Commitment Letter within seven (7)
Business Days after the execution thereof in accordance with the notice
provisions of the Ground Lease.

 

SECTION 6.16       Guaranteed Maximum Price Contract.  (i)  A true, correct and complete
copy of the Guaranteed Maximum Price Contract and the GMP Guaranty have been
delivered to Agent; (ii) the Guaranteed Maximum Price Contract and the GMP
Guaranty are in full force and effect and enforceable in all respects (subject
to the effects of bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting the enforcement of creditors’ rights generally);
(iii) Borrower is in full compliance with its obligations under the
Guaranteed Maximum Price Contract and, to the Knowledge of Borrower, General Contractor
is in full compliance with its obligations under the Guaranteed Maximum Price
Contract and the GMP Guarantor is in full compliance with its obligations
under the GMP Guaranty; and (iv) the work to be performed by General
Contractor under the Guaranteed Maximum Price Contract is in all respects the
construction work called for by the Public Project Agreements and the Plans and
Specifications.

 

SECTION 6.17       Access.  All curb cuts and driveway permits shown on the Plans and
Specifications or otherwise necessary for access to the Mortgaged Property are
existing or will exist at the time necessary for the construction and operation
of the Mortgaged Property.

 

SECTION 6.18       No Default.  No Noticed Default or Event of Default
exists.

 

SECTION 6.19       Architect’s Contract.  (i)  A true, correct and complete
copy of the Architect’s Contract has been delivered to Agent; (ii) the
Architect’s Contract is in full force and effect and enforceable in all
respects (subject to the effects of bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting the enforcement of creditors’ rights
generally); (iii) all of FC 41st Street’s and NYTC Member’s rights under
the Architect’s Contract have been assigned to Borrower and 

 

71

 

Borrower has assumed all
of FC 41st Street’s and NYTC Member’s obligations thereunder and Borrower’s
Architects have consented thereto, to the extent such consent is required under
the Architect’s Contract; (iv) Borrower is in full compliance with its
obligations under the Architect’s Contract and, to the Knowledge of Borrower,
Borrower’s Architects are in full compliance with their respective obligations
under the Architect’s Contract; and (v) the architectural services to be
performed by Borrower’s Architects are the architectural services required to
design the Project in accordance with the Plans and Specifications and the
Public Project Agreements and all architectural services required to complete
the Project in accordance with the Plans and Specifications and the Public Project
Agreements provided for under the Architect’s Contract.

 

SECTION 6.20       Plans and Specifications.  Borrower has furnished Agent true, correct
and complete sets of the Plans and Specifications in existence to date, which
Plans and Specifications comply with all Material Contracts, Legal
Requirements, Governmental Approvals, Public Project Agreements and Permitted
Exceptions, and which have been approved, to the extent required, by the
Members, General Contractor, Ground Lessor, ESDC, ING Member, the City of New
York, the New York City Transit Authority, Borrower’s Architects (to the extent
applicable) and NYTC Guarantor and by each Governmental Authority to the extent
required for construction of the Project.

 

SECTION 6.21       Budgets.  Each Budget accurately reflects Borrower’s best and reasonable
projection of all Building Loan Costs and Project Loan Costs attributable to
the applicable Unit or Units (and Agent hereby acknowledges that for so long as
the proviso clause of the first sentence of Section 4.02(e)(9) hereof
applies, any amounts in each of the Budgets on account of tenant improvement
costs and leasing commission costs, and interest on account of any delay in
achieving Stabilized Occupancy shall be deemed to be Borrower’s best and
reasonable projections of such costs). 
The Initial Required Equity Funds plus the Loan Amount accurately
reflect Borrower’s best and reasonable projection (and Agent hereby
acknowledges that, for so long as the proviso clause of the first sentence of
subject to the last Section 4.02(e)(9) hereof applies, Borrower’s projection of
tenant improvement costs, leasing commissions and interest on account of any
delay in achieving Substantial Completion as set forth in each of the Budgets
shall be deemed to be Borrower’s best and reasonable projections) of the funds
necessary to achieve payment of all Building Loan Costs and Project Loan Costs
allocable to the Project.

 

SECTION 6.22       Feasibility.  Each of the Construction Schedule and the
Disbursement Schedule is a good faith best estimate as to the matters
contained therein as of the date thereof.

 

SECTION 6.23       Lien Law Affidavit.  The Lien Law Affidavit, the Notice of
Lending and the Notice of Assignment are each a true and complete affidavit
made in conformity with Section 22, Section 73 and Section 15,
respectively, of the Lien Law.

 

SECTION 6.24       Governmental Approvals and Third Party
Approvals.  Except as noted on Schedule 4, all
Governmental Approvals and all third party consents 

 

72

 

and approvals which are
required to have been obtained to date in connection with the valid execution,
delivery and performance by any Borrower Entity of this Agreement or the other
Building Loan Documents have been obtained and are in full force and effect.

 

SECTION 6.25       No Liens.  Except for the Permitted Exceptions, no
Borrower Entity has made, assumed or been assigned any contract of any kind or
type which would give rise to a Lien against all or any portion of the
Mortgaged Property except contracts which contain the obligation of the other party
to supply such Borrower Entity with lien waivers from such other party and all
of such party’s subcontractors and materialmen covering all work done and
materials delivered in connection with the construction and design of the
Project, and all such lien waivers have been obtained for work and materials
heretofore performed or delivered.

 

SECTION 6.26       Separate Tax Lot(s).  Other than the portion of the Premises
located in Lot 15, the Premises are taxed separately without regard to any
other property and for all purposes the Premises may be mortgaged, conveyed and
otherwise dealt with as an independent parcel or parcels.

 

SECTION 6.27       Margin Stock.  None of the proceeds of the Building Loan
will be used for the purpose of purchasing or carrying “margin stock” within
the meaning of Regulation T, U or X issued by the Board of Governors of
the Federal Reserve System, as at any time amended, and Borrower agrees to
execute all instruments necessary to comply with all the requirements of
Regulation U of the Federal Reserve System, as at any time amended.

 

SECTION 6.28       Foreign Person.  Borrower is not a “foreign person” within
the meaning of Section 1445 or 7701 of the Code.

 

SECTION 6.29       ERISA.  Neither the Borrower nor any of the Members is an Employee
Benefit Plan and none of their assets constitute Plan Assets.

 

SECTION 6.30       Employees.  Neither the Borrower nor the Members employs
any natural persons as employees and neither the Borrower nor the Members shall
maintain or contribute to (or become obligated to contribute to) any Employee
Benefit Plan which is subject to Title IV of ERISA.  The execution, delivery and performance of
the Building Loan Documents by the Borrower Entities will not result in,
constitute or involve a nonexempt prohibited transaction (as defined in Section
406 of ERISA or Section 4975 of the Code) with respect to any of the Borrower
Entities, any ERISA Affiliate or any Employee Benefit Plan.

 

SECTION 6.31       Flood Zone.  The Improvements are not located in an area
as identified by the Federal Emergency Management Agency or the Federal
Insurance Administration as an area having special flood hazards.

 

SECTION 6.32       Investment Company Act.  Borrower is not (i) an “investment
company” or a company “controlled” by an “investment company,” within the
meaning of the Investment Company Act of 1940, as amended; or (ii) a
“holding 

 

73

 

company” or a “subsidiary
company” of a “holding company” or an “affiliate” of either a “holding company”
or a “subsidiary company” within the meaning of the Public Utility Holding
Company Act of 1935, as amended.

 

SECTION 6.33       Assessments.  Other than the theater surcharge referenced
in the Ground Lease, to the Knowledge of Borrower, there are no pending or
proposed special or other assessments for public improvements or other similar
matters affecting the Mortgaged Property.

 

SECTION 6.34       Property Taxes and Other Charges.  To the extent any are due, all taxes of
every kind and nature, including, without limitation, all general and special
assessments, levies, permits, inspection and license fees, all water and sewer
rents and charges, all payments in lieu of real estate taxes, payments in lieu
of sales taxes, and payments in lieu of mortgage recording taxes due under the
Ground Lease or the Severance Subleases and all other public charges whether of
a like or different nature, imposed upon or assessed against Borrower, the
Members, the Mortgaged Property or any part thereof, or upon the revenue,
rents, issues, income and profits of Borrower, the Members, the Mortgaged Property,
or any part thereof, or arising in respect of the occupancy, use or possession
thereof (collectively, “Property Taxes”), and all utility fees and charges in
connection with the Mortgaged Property have been paid.

 

SECTION 6.35       No Bankruptcy Filing.  (i) As of the Closing Date, no
Guarantor is contemplating a Voluntary Bankruptcy and, no Person has notified
any Guarantor in writing that it is contemplating the filing of any Involuntary
Bankruptcy against any Guarantor and (ii) neither Borrower nor any Member
is contemplating a Voluntary Bankruptcy, and no Person has notified Borrower or
any Member in writing that it is contemplating the filing of any Involuntary
Bankruptcy against Borrower or any Member.

 

SECTION 6.36       Filing and Recording Taxes.  All transfer taxes, deed stamps, intangible
taxes or other amounts in the nature of transfer taxes required to be paid by
any Person under any Legal Requirement in connection with the execution and
delivery of the Public Project Agreements have been paid in full.  All mortgage, mortgage recording, stamp,
intangible or other similar taxes required to be paid by any Person under any
Legal Requirement in connection with the execution, delivery, recordation,
filing, registration, perfection or enforcement of the Security Documents and
the Liens intended to be created thereby have been paid or deposited with one
of the Title Companies for payment, or, if not yet due and payable, will be
paid when due and payable.

 

SECTION 6.37       Fraudulent Transfer.  No Borrower Entity (a) has entered into
any Building Loan Document with the actual intent to hinder, delay, or defraud
any creditor or (b) has not received reasonably equivalent value in
exchange for its obligations under the Building Loan Documents.  After giving effect to the transactions
contemplated by the Building Loan Documents, the fair saleable value of
Borrower’s and each Member’s assets exceed, and will immediately following the
execution and delivery of the Building Loan Documents exceed, such Borrower
Entity’s,

 

74

 

total liabilities,
including subordinated, unliquidated, disputed or contingent liabilities
(including the maximum amount of its contingent liabilities or its debts as
such debts become absolute and matured). 
Borrower’s and each Member’s assets do not, and immediately following
the execution and delivery of the Building Loan Documents will not, constitute
unreasonably small capital to carry out their respective businesses as
conducted or as proposed to be conducted. 
Borrower does not intend to, and does not believe that it will (or that
its Members will), incur debts and liabilities (including contingent
liabilities and other commitments) beyond its ability to pay such debts as they
mature (taking into account the timing and amounts to be payable on or in
respect of its obligations).

 

SECTION 6.38       Insurance Compliance.  The Mortgaged Property is in compliance with
all insurance requirements set forth in the Building Loan Documents.

 

SECTION 6.39       Name; Taxpayer Identification Number.  Neither Borrower nor any Member has used any
trade name or done business under any name other than its actual name set forth
herein.  The taxpayer identification
number of (i) Borrower is 52-2361085; (ii) FC Member is 31-1813969;
and (iii) NYTC Member is 13-1102020. 
The exact legal name and the state of formation of Borrower as set forth
in the Articles of Organization of Borrower are as set forth on the first page
of this Agreement.  Borrower’s mailing
address, place of business and its chief executive office is the address set
forth as the Borrower’s address on the first page of this Agreement.

 

SECTION 6.40       Leases.  As of the date hereof, except as set forth on Schedule 5,
neither Borrower nor any Member has entered into any Leases on or prior to the
date hereof.  True, correct and complete
copies of all Leases have been delivered to Agent.  Such Leases are in full force and effect and are in all respects
the valid and legally binding obligations of the parties thereto, enforceable against
such parties in accordance with their respective terms (subject to the effects
of bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforcement of creditors’ rights generally).  Neither Borrower nor any Member is in
default under any such Lease.

 

SECTION 6.41       Interest Rate Protection Agreements.  Except for any Interest Rate Caps and any
other interest rate caps, interest rate management contracts or “hedge
agreements” which have been collaterally assigned to Agent for the benefit of
Lenders in accordance with the terms hereof, if any, or which relate only to
the Equity Contribution and/or the Extension Loan, no Borrower Entity has
entered into any Interest Rate Cap, interest rate cap, interest rate management
contracts or “hedge agreements” in connection with the Building Loan.  All Interest Rate Caps, if any, purchased by
Borrower  are in full force and effect
and are in all respects the valid and binding obligation of Borrower,
enforceable against it in accordance with its terms (subject to the effects of
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforcement of creditors’ rights generally).  Neither Borrower nor, to Borrower’s
Knowledge, the counterparty to any Interest Rate Cap, is in default thereunder.

 

75

 

SECTION 6.42       Prior Construction.  All construction heretofore performed
relating to the Project has been performed in accordance with all Material
Contracts, the Permitted Exceptions and all Legal Requirements, and
substantially in accordance with the Plans and Specifications, and such
construction has been fully paid for to the extent due and payable (except for
(a) any applicable Retainage, (b) construction to be paid for out of
the upcoming Advance hereunder (or from the Other Funds described in the
applicable statement pursuant to Section 4.02(e)(2) hereof) or under the
Project Loan Agreement and (c) work performed after the time period
covered by the upcoming Advance hereunder).

 

SECTION 6.43       Equity Contribution.  True, correct and complete copies of the
Equity Contribution Documents have been delivered to Agent.  The Equity Contribution Documents are in
full force and effect and are in all respects the valid and binding obligation
of the NYTC Member enforceable against it in accordance with their terms
(subject to the effects of bankruptcy, insolvency, reorganization, moratorium
or other similar laws affecting the enforcement of creditors’ rights
generally).  Neither FC Member nor the
NYTC Member is in default under the Equity Contribution Documents.

 

SECTION 6.44       Borrower LCs.  True, correct and complete copies of the
Borrower LCs have been delivered to Agent. 
Each Borrower LC is in full force and effect and is valid and
enforceable in all respects (subject to the effects of bankruptcy, insolvency,
reorganization, moratorium and other similar laws effecting the enforcement of
creditors’ rights generally).

 

ARTICLE 7

COVENANTS OF BORROWER

 

Borrower hereby covenants and agrees, from the date of
this Agreement, and as long as Borrower remains indebted to Lenders hereunder:

 

SECTION 7.01       Guaranteed Maximum Price Contract; GMP
Guaranty.  (a)  To enforce the Guaranteed Maximum Price
Contract and the GMP Guaranty in a diligent and commercially reasonable manner,
(b) to observe and perform in all material respects each and every term to
be observed or performed by Borrower thereunder, (c) to do no act which
would relieve General Contractor or GMP Guarantor from its obligations
thereunder, (d) to not amend or make any “Change Orders” or “Field Directives”
(as such terms are defined in the Guaranteed Maximum Price Contract;
hereinafter, “Scope Changes”)
under the Guaranteed Maximum Price Contract except as permitted under
Section 7.11 hereof; (e) except to Agent for the benefit of Agent and
Lenders, not to sell, convey, transfer, assign, alienate, mortgage, encumber,
pledge, hypothecate, or transfer the Guaranteed Maximum Price Contract, the GMP
Guaranty or any interest thereon (or, without the prior approval of Agent,
permit the sale, conveyance, transfer, assignment, alienation, mortgaging,
encumbrance, pledging, hypothecation, or transfer of the Guaranteed Maximum
Price Contract by General Contractor or of the GMP Guaranty by the GMP
Guarantor, or any interest in either), (f) not to terminate, suspend or cancel
the Guaranteed Maximum Price Contract or the GMP Guaranty or waive any material

 

76

 

provision thereof without
the prior reasonable consent of Agent, provided that, Borrower may terminate or
cancel the Guaranteed Maximum Price Contract if prior to or simultaneously with
such termination or cancellation, Borrower shall have entered into a new
construction management agreement with a construction manager with a guaranteed
maximum price, which construction manager, agreement and price shall each be
reasonably acceptable to Agent (and if reasonably requested by Agent, Borrower
shall also obtain a guaranty of such agreement in form and substance, and from
an entity, reasonably satisfactory to Agent) and (g) to notify Agent of
any default thereunder promptly after obtaining Knowledge thereof and provide
Agent with copies of all material notices delivered in connection
therewith.  Borrower shall from time to
time, upon request by Agent, use diligent efforts to cause General Contractor
to provide Agent and Construction Consultant with reports in regard to the
status of construction of the Project, in such form and detail as reasonably
requested by Agent.  Promptly after
Borrower’s receipt thereof, Borrower shall deliver to Agent copies of all trade
contracts entered into by the General Contractor.

 

SECTION 7.02       Architect’s Contract.  To use diligent efforts, upon Agent’s
request, to cause Borrower’s Architects to provide Agent and Construction
Consultant with reports in regard to the status of construction of the Project,
in such form and detail as reasonably requested by Agent.

 

SECTION 7.03       Insurance.  To maintain the Policies in full force and
effect and to diligently prosecute all claims, and comply with all procedures
and requirements thereunder.  The
proceeds of any insurance shall be applied in accordance with the terms of the
Building Loan Mortgage.

 

SECTION 7.04       Application of Funds.  To use the proceeds of the Building Loan
solely and exclusively for the purposes set forth herein.  Borrower will receive the Advances to be
made hereunder and will hold the right to receive the same as a trust fund for
the purpose of paying the Costs of the Improvement and achieving Final
Completion and it will apply the same first to such payment before using any
part thereof for any other purpose.

 

SECTION 7.05       Property Taxes.  To promptly pay when due (or to cause each
Member to pay when due), and to provide (or cause to be provided to) Agent with
receipted bills therefor if requested by Agent as soon as said receipted bills
are available, all Property Taxes and, upon the failure of the owner(s) of the
portion of lot 15 not owned by Borrower to pay all real estate taxes and other
impositions on lot 15 prior to the due date thereof, to promptly pay all such
taxes and impositions.  Notwithstanding
the foregoing or anything herein to the contrary, Borrower or the applicable
Member shall have the right to contest the validity or application of any
Property Taxes by appropriate legal proceedings, so long as:  (1) such legal proceedings shall be
prosecuted with diligence by Borrower (or such Member), shall operate to
prevent any taking or closing or shutting down of the Premises or any portion
thereof by any Governmental Authority, and shall have the effect of staying any
type of sale or forfeiture of the Premises or any part thereof for failure to
comply, (2) Borrower (or such Member) shall 

 

77

 

have deposited with or
delivered to Agent, as applicable, cash collateral, a bond or such other
security reasonably satisfactory to Agent, on such terms as may be reasonably
satisfactory to Agent and (if applicable) in an amount as may be deemed
reasonably necessary by Agent (taking into account amounts provided for in the
applicable Budget for such Property Taxes and amounts remaining to be funded
from the applicable Loan with respect thereto) to pay for such contest and to
pay any such Property Taxes to the extent Borrower (or such Member) has not
paid such Property Taxes to the applicable Governmental Authority), and any
fines, penalties, charges and interest thereon which may be awarded or assessed
(which amount shall be increased at the request of Agent when Agent determines
(in its reasonable judgment) that a greater amount may be required to make such
payments), (3) such proceeding shall not subject Agent, any Lender,
Borrower or any Member to the risk of any criminal liability, (4) no
Noticed Default or Event of Default shall then exist under any Building Loan
Document, (5) Borrower (or such Member) gives Agent (x) reasonably
continuous notice upon the commencement and during the continuation of any such
proceeding of the status thereof, and (y) confirmation on such periodic
basis as Agent may request of the continuing satisfaction of the conditions set
forth in clauses (1) through (4) above, and (6) Borrower (or such
Member) shall have furnished to Agent all other items reasonably requested by
Agent.  If Borrower (or such Member)
shall fail at any time to comply with the above conditions to contest or the
Premises or any part thereof is, in the judgment of Agent, in any imminent
danger of being forfeited or lost, Agent may require Borrower (or such Member)
to, and Borrower (or such Member) will, thereupon make the payment which is the
subject of the contest.  During the
continuance of an Event of Default, Agent may, at its option, credit all or any
part of any cash, bond or other security then held by it to the Indebtedness in
such order as Agent may elect.  Upon
final determination of such contest, Borrower (or such Member) will take all
steps necessary to comply with any requirements arising therefrom.  Borrower (on behalf of itself and each
Member) hereby absolutely and unconditionally collaterally assigns to Agent for
the benefit of Lenders all of its right, title and interest in and to any
refund of Property Taxes  or other
assessments (net of all reasonable collection expenses and any portions thereof
payable to tenants and, after the NYTC Units Redemption, to NYTC Member) (such
net refund amount, a “Tax Refund”) now or hereafter payable to Borrower or any
Member as a result of any tax contest, protest, tax certiorari proceeding (“Tax Proceeding”) or
otherwise.  If Borrower or any Member
shall receive any Tax Refund applicable to the Project or any Unit, such Tax
Refund shall be deposited with Agent by Borrower or such Member, within three
(3) Business Days of receipt thereof, to be applied or deposited, at the
option of Borrower (a) if the Collection Accounts Agreement has been
executed as of such date and Borrower and each Member have complied with their
other obligations under Section 7.57 hereof, to a Collection Account,
(b) to the prepayment of the Loans on the next interest payment date or
(c) on the next Advance Date, to pay Building Loan Costs and/or Project Loan
Costs allocable to the applicable Units. 
During the continuance of an Event of Default, Agent may, at its option,
credit all or any part of the Tax Refund to the Indebtedness in such order as
Agent may elect.  Copies of all Property
Tax bills received by Borrower shall be promptly sent by Borrower to Agent.

 

78

 

SECTION 7.06       Reimbursable Costs, Transaction Costs
and Other Fees and Costs.  (a)  (i) To reimburse Agent for all
reasonable, third-party out-of-pocket costs and expenses which may hereafter be
incurred by Agent in connection with, or coincidental to, the Building Loan,
including, (1) all Transaction Costs and (2) all Reimbursable Costs,
and (ii) to reimburse Agent and each Lender for all reasonable,
third-party out-of-pocket costs and expenses (including, without limitation,
attorneys’ fees) which may hereafter be incurred by Agent or any Lender in
connection with Assignments (other than any pledge or hypothecation) of the
Building Loan and Project Loan up to a maximum of $90,000.00 in connection with
all Assignments of the Loan.  All such
costs and expenses shall be paid by Borrower within ten (10) Business Days
after demand is given to Borrower, together with reasonable back-up information
substantiating such costs and expenses. 
Notwithstanding the foregoing, Borrower shall reimburse Agent on the
date hereof for all Transaction Costs incurred by Agent to the date hereof.

 

(b)           All
amounts incurred or paid by Agent or any Lender under Section 7.06(a)
hereof, together with interest thereon at the Default Rate from the due date
until paid by Borrower, shall be added to and be deemed for all purposes a part
of the Indebtedness and shall be secured by the Security Documents.

 

SECTION 7.07       Completion of Construction.  To pursue with diligence the construction of
the Project, the achievement of Core and Shell Completion, the achievement of
“Substantial Completion” (as defined in the Ground Lease) no later than the
Fixed Substantial Completion Date and the achievement of Final Completion with
respect to the Project in accordance with this Agreement and all Public Project
Agreements, the Material Contracts (to the extent applicable), and in
substantial compliance with the Plans and Specifications, in a good workmanlike
manner and free of defects, and in compliance with all restrictions, covenants
and easements affecting the Mortgaged Property, all Legal Requirements, all
Governmental Approvals, and all terms and conditions of the Building Loan
Documents and to achieve “Substantial Completion” (as defined in the Ground Lease)
by the Fixed Substantial Completion Date and Final Completion of the Project by
the Maturity Date.  Borrower shall pay
all sums and perform all duties as may be necessary to complete such
construction and activities, all of which shall be accomplished in a manner
such that the Mortgaged Property remains free from any Liens, claims or
assessments (actual or contingent) for any material, labor or other item
furnished in connection therewith. 
Borrower shall deliver to Agent and Construction Consultant copies of
all Governmental Approvals relating to such construction and development
related activities as and when received by Borrower or any Member.  Borrower shall not commit or permit waste of
the Mortgaged Property.  After Final
Completion, Borrower (i) shall maintain or cause to be maintained the
Mortgaged Property in good working order and shall comply with all Legal
Requirements affecting the Mortgaged Property, (ii) maintain or cause to
be maintained the NYTC Office Unit and the FC Office Unit as “Class A”
office space, and (iii) maintain or cause to be maintained the FC Retail
Unit as first-class retail space.

 

79

 

SECTION 7.08       Right of Agent to Inspect Property;
Publicity.  To permit Agent and its
representatives (including without limitation, the Construction Consultant) to
enter and inspect the Project and all materials to be used in the construction
thereof (such inspections to be performed, at the option of Borrower, with a
representative or representatives of Borrower present thereat) and to examine
the Plans and Specifications (a copy of which shall be kept at the Property) at
all reasonable times and with reasonable advance notice; to cooperate and use
reasonable efforts to cause the General Contractor, all contractors and
subcontractors to cooperate with the Construction Consultant to enable it to
perform its functions hereunder; and to permit Agent to maintain one sign on
the Premises (at the expense of Borrower) in a location clearly visible to the
public and otherwise publicize Agent’s role as Agent and/or a Lender; provided,
however, that the text and circumstances of such sign shall be subject to the
prior approval of Borrower, which consent shall not be unreasonably withheld or
delayed and, to the extent required by the DUO Declaration, shall be in
accordance with the terms and conditions set forth in the DUO Declaration.

 

SECTION 7.09       Construction Consultant.  (a) 
To permit Agent to retain the Construction Consultant at the cost of
Borrower for the purposes of (i) reviewing all construction contracts
contemplated to be entered into by or on behalf of any Borrower Entity and
which are required to be approved by Agent pursuant to this Agreement,
(ii) reviewing the Plans and Specifications and all Draw Requests,
(iii) reviewing all proposed changes to such construction contracts and
Plans and Specifications, (iv) making periodic inspections of the Project,
(v) reviewing all payment requisitions submitted by all Persons,
(vi) reviewing all field reports, (vii) reviewing the Disbursement
Schedule, Construction Schedule and the Budgets, and all proposed changes
thereto and (viii) advising Agent generally concerning construction and
construction and development related activities at the Project, including
whether Core and Shell Completion has been achieved, and whether Substantial
Completion and Final Completion have been achieved with respect to any Unit or
the Project.  Borrower shall deliver
(and shall cause each other Borrower Entity to deliver) to Agent and
Construction Consultant copies of all documents referred to in this
Section promptly upon receipt of same.

 

(b)           To
pay the reasonable fees and reasonable out-of-pocket expenses of the
Construction Consultant.

 

SECTION 7.10       Correction of Defects.  To promptly correct, regardless of whether
demand has been made by Agent or Construction Consultant, all defects in the
Project or any departure from the Plans and Specifications not previously
approved by Agent (to the extent such approval was required pursuant to the
terms hereof).  Borrower agrees that any
Advance, whether before or after such defects or departures from the Plans and
Specifications are discovered by or brought to the attention of Agent, shall
not constitute a waiver of Agent’s right to require compliance with this
covenant.

 

80

 

SECTION 7.11       Plans and Specifications; Approval of
Change Orders; Cost Savings.

 

(a)           To
permit no (i) Scope Changes or (ii) deviations or amendments to the
Plans and Specifications or to the work to be performed under any contract or
subcontract relating to construction of the Project (including any field
orders) (each of the items in clauses (i) and (ii) of this
Section 7.11(a), a “Change Order”) without the prior approval of Agent, such
approval not to be unreasonably withheld, provided, however, that subject to
the further provisions of this Section 7.11, Borrower may make or permit
to be made any Change Order without Agent’s prior written approval so long as
(A) (1) the cost of such Change Order does not exceed, as reasonably
estimated by the Construction Consultant, $500,000 and such Change Order
does not, in Agent’s reasonable judgment, materially change the design of the
Project, (2) the cost of all such Change Orders made pursuant to this
clause (A) do not exceed, as reasonably estimated by the Construction
Consultant, $3,000,000 in the aggregate, (3) such Change Order does not
cause any line item in any Budget to be exceeded (after taking into account,
without duplication, any revisions or reallocations permitted under
Sections 3.02, 3.03 and 3.20, reallocations under this Section 7.11
and revisions or reallocations under Sections 3.02, 3.03, 3.20 and 7.11 of
the Project Loan Agreement, other reallocations approved by Agent, and any
Completion Deposit or portion thereof (or any “Completion Deposit” (or portion
thereof) under and as defined in the Project Loan Agreement) applicable to such
line item, (4) such Change Order shall not increase the likelihood that
“Substantial Completion” (as defined in the Ground Lease) will not be achieved
by the Fixed Substantial Completion Date and Final Completion will not be
achieved by the Maturity Date and (5) Borrower delivers to Agent prior
notice of such Change Order or (B) such Change Order is required by a new
Legal Requirement or is mandated by health, life or safety reasons which were
not reasonably foreseeable by Borrower, provided that Borrower shall, if
practicable, provide prior notice of such Change Order to Agent, and if not
practicable, shall give notice to Agent immediately thereafter.

 

(b)           Notwithstanding
the provisions of Section 7.11(a) above, no Change Order shall be submitted to
Agent or implemented (and Borrower shall not instruct the General Contractor or
any other contractor or direct or indirect subcontractor to perform or
implement any such Change Order) which requires (or is alleged by the
applicable party to require) the approval of the Extension Loan Lender, FC
Member, Ground Lessor, ESDC, the City of New York, the New York City Transit
Authority, NYTC Member or ING Member (or with respect to which it is claimed,
by any such entity, that its approval is required) unless such approval has
been previously obtained.

 

(c)           Each
notice to Agent of, and each request to Agent for approval of, a Change Order
shall specify the amount of such Change Order, the aggregate amount of all
previous Change Orders and the aggregate amount of Change Orders then counting
towards the aggregate limit referred to in clause (A)(2) of
Section 7.11(a).  Borrower shall
maintain adequate records to substantiate all costs incurred in constructing
the Project, including drawings marked to reflect all approved changes to the
Plans and Specifications.

 

(d)           In
the event that (A) a line item in a Budget shall be completed (and paid
for in full with all appropriate final lien waivers obtained) without 

 

81

 

the expenditure of all amounts in the applicable
Budget allocated to such line item, (B) Borrower shall demonstrate to
Agent’s reasonable satisfaction that a cost savings has been or will be
realized with respect to any uncompleted line item (other than the
“Construction Interest—GMAC Loan/NYTC Funding Amount,” the “Rent-Up Deficit”
and the “Additional Interest Reserve” line items in the Budgets (collectively,
“Additional Interest Line Items”)),
or (C) in the case of the Additional Interest Line Items if
(x) Breakeven Leasing has been achieved (provided that for purposes of
this Section 7.11(d) only, Breakeven Leasing shall be calculated assuming
the Extension Loan has been made), and (y) Borrower shall demonstrate to
Agent’s satisfaction (in Agent’s sole discretion) that if the requested portion
of any of the Additional Interest Line Items is reallocated, the remaining
aggregate amount of the Additional Interest Line Items constitute an adequate
interest reserve including an adequate reserve (if the Initial Advance Interest
Rate Cap was not purchased), for all anticipated purchases of Future Advance
Interest Rate Caps (excluding, however, interest payable on the Extension
Loan), Agent shall permit the applicable portion of such overbudgeted line item
to be (x) in the case of NYTC Units Budget line items, Advanced pursuant to the
last sentence of Section 3.05(d) of the Project Loan Agreement or (y) in
the case of FC Units Budget or NYTC Units Budget line items, shifted to one or
more other line items (but only, in the case of clause (C), to the
Building Loan Contingency only to the extent that all reallocations under said
clause (C), together with any reallocations under Section 7.11(d)(C)
of the Project Loan Agreement, do not exceed $15,000,000.00), provided
that:  (i) a revised Budget and a
revised Disbursement Schedule, each of which shall indicate revisions made to
date (including, without limitation, the reallocation of amounts as a result of
such cost savings) shall have been furnished to and reasonably approved by
Agent and Construction Consultant (provided that in the case of the
Disbursement Schedule only, Agent and Construction Consultant shall be deemed
to have approved any best estimate revisions made in good faith by Borrower),
(ii) no line item for Hard Costs shall be reallocated to pay any line
items that are not Hard Costs until all Hard Costs shall have been paid for,
and (iii) any reallocation of Budget amounts will not have the effect of
reducing the net sum which Borrower estimates will be available to it from the
Building Loan to pay contractors, subcontractors, laborers and materialmen for
the Improvement as set forth in Borrower’s Lien Law Affidavit.  Notwithstanding the foregoing, no
reallocation with respect to the Development Cost Line Item shall be permitted;
provided, however, that upon achievement of Substantial Completion of the
Project, Borrower shall be permitted to use all or any portion of the
Development Cost Line Item for the purchase of any Interest Rate Caps then
required to be provided hereunder and, to the extent the Development Cost Line
Item exceeds the costs of such Interest Rate Caps as determined by Agent, to
any other line item in the Budgets, subject, however, to clause (iii) of
this Section 7.11(d).

 

(e)           Agent
and Borrower acknowledge and confirm that notwithstanding any other provision
hereof, (i) the implementation of Section 7.11(d) may result in an
increase in Loan proceeds used to pay Building Loan Costs and a corresponding
decrease in Loan proceeds used to pay Project Loan Costs, but under no
circumstances can result in a decrease in Loan proceeds used to pay Building
Loan Costs or an increase in Loan proceeds used to pay Project Loan Costs and
(ii) the implementation of the procedures set forth in Section 7.11(d) of the
Project Loan 

 

82

 

Agreement may result in an increase in the Building
Loan Amount and a decrease in the Project Loan Amount.  Any such increase in proceeds used to pay
for Building Loan Costs shall be subject to the last sentence of 7.11(e) of the
Project Loan Agreement.

 

SECTION 7.12       Appraisal.  To permit Agent to conduct or have
conducted, at Agent’s sole option and at Borrower’s expense, additional
appraisals of the Mortgaged Property, or updates to the Appraisal, in form and
substance satisfactory to Agent, provided, however, that Borrower shall not be
required to pay for such additional appraisals if:  (i) no Noticed Default or Event of Default exists under this
Agreement or any other Building Loan Document; (ii) such appraisal or
update is not required by any Legal Requirement applicable to any Lender or the
interpretation or administration thereof by any Governmental Authority or
comparable agency charged with the interpretation or administration thereof;
(iii) such additional appraisal or update is not required by the express
terms of this Agreement or any other Loan Document; and (iv) Borrower
shall have previously paid for an additional appraisal or an update to the
Appraisal during the calendar year in which such additional appraisal or update
is dated.

 

SECTION 7.13       Material Contracts; Approval of
Activities.  (a) Without the
prior approval of Agent, which approval shall not be unreasonably withheld or
delayed, not to (and not to permit any Member to and, in the case of Major
Subcontracts, not to permit (to the extent that Borrower’s approval is required
under the Guaranteed Maximum Price Contract) General Contractor to)
(i) except to Agent for the benefit of Agent and Lenders, sell, convey,
transfer, assign, alienate, mortgage, encumber, pledge, hypothecate or transfer
any Material Contract (which for purposes of this Section 7.13 (other than
subsection (c) of this Section 7.13) shall not include the Guaranteed
Maximum Price Contract, the GMP Guaranty, the Ground Lease or the Severance
Subleases), or any interest therein, or permit the sale, conveyance, transfer,
assignment, alienation, mortgaging, encumbrance, pledging, hypothecation or
transfer by the third party thereto, except in accordance with the terms hereof,
(ii) enter into, amend, modify, suspend, surrender, terminate, cancel, waive or
release any material provision of any (or, in the case of Major Subcontracts,
permit (to the extent that Borrower’s approval is required under the Guaranteed
Maximum Price Contract) General Contractor to enter into, amend, modify,
suspend, surrender, terminate, cancel, waive or release any material provision
of such) Material Contract (including, without limitation, the definition of
Core and Shell in the Architect’s Agreement) of the Project, except to the
extent permitted or approved under Section 7.11 or, in the case of the
termination or cancellation of the Architect’s Contract, Borrower may so
terminate or cancel if, prior to or simultaneously with such termination or cancellation,
Borrower shall have entered into a new agreement or agreements with one or more
architects which agreement or agreements and architect or architects shall be
reasonably acceptable to Agent, and in any event such agreement or agreements
shall use the same definition of Core and Shell as that used in the Architect’s
Agreement.  Simultaneously with the
entering into of any Managing Agent Agreement or, to the extent requested by
Agent, any Leasing Agent Agreement or any other Material Contract (other than
any Major Subcontract), Borrower shall (or shall cause the Member which is a
party thereto to) cause the other party thereunder to execute and deliver to 

 

83

 

Agent a consent to the
collateral assignment thereof in form and substance reasonably satisfactory to
Agent.

 

(b)           To
observe and perform in all material respects each and every term to be observed
or performed by Borrower (and to cause each other Borrower Entity to do the
same) pursuant to the terms of any Material Contract (other than any Major
Subcontract) and to: (i) promptly notify Agent of any material default under
any Material Contract (other than any Major Subcontract, in which case Borrower
shall promptly notify Agent of any material defaults thereunder promptly after
Borrower acquires Knowledge thereof) and provide Agent with copies of any
notices delivered in connection with any default under any Material Contract;
and (ii) enforce (or, in the case of Major Subcontracts, cause, to the extent
permitted under the Guaranteed Maximum Price Contract, the enforcement of) the
provisions thereof in a diligent and commercially reasonable manner.

 

(c)           Agent’s
right hereunder to approve any Material Contract shall create no responsibility
or liability on behalf of Agent or Lenders for their completeness, design,
sufficiency or compliance with Legal Requirements.

 

SECTION 7.14       Leases.  (a)  To (and to cause each Member to, as applicable):

 

(i)            perform or cause to be performed in
all material respects the lessor’s obligations under each Lease where there is
not at the time an outstanding “Event of Default” by tenant thereunder,

 

(ii)           promptly notify Agent in writing of
any material default under any Lease and provide Agent with copies of any
notices delivered or received in connection with any default under any Lease,

 

(iii)          enforce the performance and observance
of all of the covenants and agreements required to be performed and/or observed
by the other party or parties under any Lease, to the extent it is commercially
reasonable to do so,

 

(iv)          during the continuance of an Event of
Default, grant Agent the right, but Agent shall be under no obligation, to pay
any sums and to perform any act or take any action as may be appropriate to
cause all of the terms, covenants and conditions of any Lease on the part of
the Borrower or such Member (as applicable) to be performed or observed to be
promptly performed or observed in all material respects on behalf of Borrower
or such Member (as applicable), to the end that the rights of Borrower or such
Member (as applicable) in, to and under said Leases shall be kept unimpaired
and free from default,

 

(v)           provide, simultaneously with the
execution of each Lease (or on or prior to the date hereof with respect to
Leases executed on or prior to the date hereof), to (1) each lessee, a
Section 291-f Notice in form and 

 

84

 

substance reasonably
satisfactory to Agent, and (2) Agent, an executed acknowledgment from each
such tenant relating to the payment of rent and security deposits to a Security
Deposit Account and a Collection Account and the use of an expedited check
clearing process, which acknowledgment shall be in the form required by each of
the Security Deposit Accounts Agreement and the Collection Accounts Agreement,
and

 

(vi)          not, without the prior approval of
Agent, which approval shall not be unreasonably withheld or delayed (except in
the case of subclauses (3) and (4) of this clause (vi) or any matter
relating to a Lease with (or proposed to be with) an Affiliate of any Borrower
Entity, in which case Agent’s approval may be withheld in Agent’s sole and
reasonable discretion),

 

(1)           except as expressly permitted
thereunder (but subject to the provisions of clause (7) below), amend, modify,
extend or otherwise alter, in any material respect, any Lease;

 

(2)           enter into (subject to the further
provisions of this Section 7.14) any Lease;

 

(3)           assign, mortgage, pledge or otherwise
transfer, dispose of or encumber, whether by operation of law or otherwise, any
Lease or the Rents thereunder or therefrom except in connection with the
Extension Loan;

 

(4)           accept or permit the acceptance of a
prepayment of any of the Rents (excluding security deposits) in respect of any
Lease for more than one (1) month in advance of the due date therefor;

 

(5)           waive or release any of its material
rights under any Lease or any guaranty thereof;

 

(6)           consent to the assignment of all or
any portion of any Lease, or a sublease of all or any portion of a Lease by the
lessee thereunder (to the extent Lessor’s consent is required for such assignment);

 

(7)           materially relocate any portion of
any space subject to a Lease; or

 

(8)           terminate, cancel or accept a
surrender of any Lease unless a monetary default exists thereunder or the
applicable tenant has filed for bankruptcy or has had an involuntary bankruptcy
filed against it;

 

provided, however, that any Lease that is by its express terms
subordinate to the Building Loan Mortgage (and all amendments and refinancings
thereof and increases thereto) without the delivery of a non-disturbance agreement
by Agent shall not be subject to subclauses (1), (2), (5), (6) and (7) of this
clause (viii) of this Section 7.14 if such Lease 

 

85

 

(together with all other Leases with the applicable Tenant and
Affiliates thereof) is (taking into account all expansion options) for
(x) office space only comprising not more than one full floor or not more
than 25,000 rentable square feet or (y) retail space only comprising not
more than 10,000 rentable square feet (any Lease covered by this proviso clause,
a “Subordinate Lease”).

 

(b)           All
Leases shall be subordinate to the Building Loan Mortgage and provide that the
lessee thereunder agrees to attorn to Agent at Agent’s request.  Notwithstanding the foregoing, so long as
Borrower is not then in monetary or material non-monetary Default hereunder, at
the request of Borrower or the applicable Member, Agent, for itself and on
behalf of Lenders, shall enter into a Non-Disturbance Agreement with each
proposed Tenant under a Permitted Lease which meets the conditions set forth in
clauses (i) or (ii) below, as applicable, and each of clauses (iii)
through (vii) below.

 

(i)            As to proposed Tenants of space in
the FC Retail Unit or the Common Elements Leasable Space (as defined in the
Ground Lease), as applicable:  (x) the
proposed Tenant is of sufficient financial condition to perform the obligations
under the applicable Permitted Lease, taking into account any security deposit
posted by the proposed Tenant, and Agent shall have been furnished with
evidence reasonably satisfactory to Agent of such financial condition, and (y)
the rentable square feet demised by such Permitted Lease is:

 

(A)          10,000 or more, or

 

(B)           (1) 
5,000 or more, but less than 10,000, and (2) the Tenant has
expended or is obligated to expend at least $100.00 (subject to adjustment as
provided in Section 13.2(b)(i)(B) of the Ground Lease) per square foot
(exclusive of any allowance provided by Borrower or the applicable Member with
respect to such improvements) on such Tenant’s initial tenant improvement work,
or

 

(C)           (1) 2,500 or more, but less than
5,000, and (2) the Tenant has expended or is obligated to expend at least
$200.00 (subject to adjustment as provided in Section 13.2(b)(i)(B) of the
Ground Lease) per square foot (exclusive of any allowance provided by Borrower
or the applicable Member with respect to such improvements) on such Tenant’s
initial tenant improvement work.

 

(ii)           As to proposed Tenants of the FC
Office Unit or the NYTC Office Unit:

 

(A)          If NYTC Guarantor or its Affiliates
occupy the NYTC Office Unit, and the leased space is in the FC Office Unit and
the proposed Tenant is NYTC Guarantor pursuant to the form of NYTC Sublease
substantially as set forth in Exhibit Q
attached to the Ground Lease (the “NYTC Form Sublease”) in the form of the Non-Disturbance
Agreement, provided that 

 

86

 

such Non-Disturbance
Agreement shall provide that it is not effective unless and until the NYTC
Units are not subject to the lien of the Building Loan Mortgage and the Project
Loan Mortgage and NYTC Guarantor has no direct or indirect ownership interest
in FC Member or Borrower; or

 

(B)           in all circumstances not covered by
clause (ii)(A) of this Section 7.14(b), (1) the space demised by such
Permitted Lease is one-half of one full floor or more (provided, however, that,
with respect to a Permitted Lease of less than a full floor Agent’s obligation
to enter into a Non-Disturbance Agreement pursuant to this
Section 7.14(b)(ii)(B) shall apply only if Borrower shall supply to Agent,
together with Borrower’s Lease Request Form, evidence reasonably satisfactory
to Agent that the space to be leased shall be regular in shape, reasonably
accessible in a customary manner, rented at not less than fair market value and
otherwise on terms that are commercially reasonable and customary in respect of
similarly situated tenants of space of the size and quality to be demised under
the Permitted Lease), and (2) the proposed Tenant is of sufficient financial
condition to perform the obligations under the proposed Permitted Lease, taking
into account any security deposit posted by the proposed Tenant, and Agent
shall have been furnished with evidence reasonably satisfactory to Agent of
such financial condition.  For the
purposes of this clause (ii)(B), evidence of “fair market value” and
“commercially reasonable and customary” terms may be provided by the opinion of
two (2) or more disinterested real estate professionals, each having at least
ten (10) years of experience in valuing or leasing commercial real estate in
midtown Manhattan (each, a “Real Estate Professional”).

 

(iii)          The proposed Tenant is not an
Affiliate of Borrower or any Member (except as Permitted in clause (ii)(A)
of this Section 7.14(b)).

 

(iv)          The proposed Tenant (and its direct
and indirect owners if such proposed Tenant is not publicly held) is not a
Prohibited Person (as defined in the Ground Lease).

 

(v)           The Permitted Lease satisfying the
conditions set forth in Section 7.14 (b)(ii)(A) shall provide for no
decrease in the amount of rent payable thereunder over the term of such
Permitted Lease except for customary abatements and offsets of rent.

 

(vi)          Except in respect of a Permitted Lease
satisfying the conditions set forth in Section 7.14(b)(ii)(A), none of
(A) the demised premises (including any expansion space) under such
Permitted Lease, nor (B) the exclusive or prohibited use provisions of
such Permitted Lease, conflict with (1) the demise under or (2) the exclusive
or prohibited provisions of, any other Permitted Lease, and Borrower shall
deliver to Agent a certification to such effect signed by Borrower.

 

87

 

(vii)         Except in respect of a Permitted Lease
satisfying the conditions set forth in Section 7.14(b)(ii)(A), and subject
to clauses (b)(i) and (b)(ii) above, as applicable, the Permitted Lease
contains terms that are commercially reasonable and customary in respect of
similarly situated tenants of space of the size and quality to be demised under
the proposed Permitted Lease, and the rent and other amounts owed thereunder
constitute not less than fair rental value for the space to be demised
thereunder.  For purposes of this
clause (vii), evidence of “commercially reasonable and customary” terms
and “fair market value” may be provided by the opinion of two (2) or more Real
Estate Professionals.

 

(c)           All
Leases of space in the Units and Common Elements (other than Subordinate
Leases) must be in a form as may be reasonably acceptable to Agent.  In the event that Agent shall fail to
approve or disapprove of any proposal with respect to a Lease (other than a
Subordinate Lease) made under this Section 7.14 within ten (10) Business
Days after receipt by Agent of a notice from Borrower specifying that if Agent
fails to approve or disapprove such proposal, such approval shall be deemed
given, and provided that Agent shall have been provided with all material
information necessary in the reasonable opinion of Agent to make such
determination including, without limitation, the final form of the proposed
Lease (and if the approval relates to a new lease, a summary of the material
terms thereof), and all other material and/or necessary financial data on the
potential tenant, as reasonably determined by Agent, Agent shall be deemed to
have approved such proposal.  Any new
Lease, and any modification, amendment, extension or alteration to any Lease,
shall be delivered to Agent promptly after execution by Borrower or the
applicable Member and the Tenant thereunder. 
Borrower shall pay all reasonable attorneys’ fees and disbursements
incurred by Agent in connection with the review of proposed Leases by Agent’s
counsel.  No Subordinate Lease, or any
amendment thereto, shall be entered into unless Agent is given not less than
five (5) Business Days’ notice thereof.

 

(d)           All
information in all requests for Lease approvals shall be true and correct in
all material respects.

 

SECTION 7.15       Books and Records.  To keep and maintain detailed, complete and
accurate books, records and accounts, on a Fiscal Year basis, reflecting all of
its financial affairs and all items of income and expense of Borrower in
connection with the Property and the construction of the Project in accordance
with generally accepted accounting principles consistently applied and the
results of the operation thereof.

 

SECTION 7.16       Financial Statements and Other Information.  (a)  To furnish Agent the
following:

 

(i)            Quarterly Statements.  (A) From and after the Fiscal Year quarter
following the Fiscal Year quarter in which Substantial Completion occurs,
within forty-five (45) days after the close of each Fiscal Year quarter, an
unaudited (1) operating statement of the Property detailing the total revenues 

 

88

 

received and the total
expenses incurred and (2) to the extent not covered by the foregoing, a balance
sheet and profit and loss statement of Borrower and FC Member, in each case
prepared in accordance with generally accepted accounting principles,
consistently applied, and certified by Borrower or FC Member, as applicable,
and (B) within forty-five (45) days after the date of filing or submission
thereof, copies of the 10-Q statements of each of the Guarantors; provided,
however, that from and after a Fiscal Year in which the shares of a Guarantor
are no longer being traded on a nationally-recognized exchange, within
forty-five (45) days after the close of each Fiscal Year quarter, unaudited
financial statements prepared in accordance with generally accepted accounting
principles, consistently applied, and otherwise in form and substance
reasonably satisfactory to Agent, and certified by such Guarantor.

 

(ii)           Annual Statements.  (A) 
From and after the Fiscal Year in which Substantial Completion occurs,
within one hundred twenty (120) days after the close of each Fiscal Year, an
audited (1) operating statement of the Property detailing the total revenues received
and the total expenses incurred and (2) to the extent not covered by the
foregoing, a balance sheet and profit and loss statement of Borrower and FC
Member, in each case prepared in accordance with generally accepted accounting
principles, consistently applied, and certified by Borrower or FC Member, as
applicable, and (B) within one hundred twenty (120) days after the date of
filing or submission thereof, copies of the 10-K statements of each of the
Guarantors; provided, however, that from and after a Fiscal Year in which the
shares of a Guarantor are no longer being traded on a nationally-recognized
exchange, within one hundred twenty (120) days after the close of each Fiscal
year, audited financial statements prepared in accordance with generally accepted
accounting principles, consistently applied, and otherwise in form and
substance reasonably satisfactory to Agent and certified by such Guarantor.

 

(iii)          a certificate from Borrower certifying
that there is no Default or Event of Default under the Loan Documents, which
certificate shall be delivered to Agent no later than forty-five (45) days
after the close of each Fiscal Year of the Borrower;

 

(iv)          such other reports and information
(including, without limitation, bank statements, but only as to Borrower and
the Members) as Agent shall reasonably require, which reports and information
shall be delivered to Agent as soon as practicable but in no event later than
twenty (20) days after Agent’s request therefor, provided that, if such
information cannot reasonably be delivered within such twenty (20) day period,
within such longer period as may be required so long as such entity is
diligently pursuing the delivery thereof;

 

(v)           monthly leasing status reports for
the FC Units, and, from and after Substantial Completion of any Unit, retail
tenant sales reports with respect to any tenants who are currently paying
percentage rent, tenant receivables reports and a current rent roll for each
such Unit, each certified to fairly represent the status of such Unit by the
owner of such Unit, which reports shall be delivered 

 

89

 

to Agent no later than
twenty (20) days after the last day of each calendar month; and

 

(vi)          (1) monthly statements showing
any revisions since the preceding monthly statement to the Plans and
Specifications (including all Change Orders since the preceding monthly
statement (regardless of whether the work on such Change Order has commenced or
the price therefor or any applicable time extension with respect thereto has
been agreed to) and (2) quarterly statements showing the contracts entered
into by any Borrower Entity, or by General Contractor with subcontractors,
subsequent to the Closing Date, which statements shall be certified by Borrower
(as to contracts entered into by Borrower) or the applicable Member (as to
contracts entered into by such Member) and delivered to Agent and Construction
Consultant no later than twenty (20) days after the last day of each calendar
month or calendar quarter, as applicable.

 

(b)           To
grant (and to cause each Member to grant) Agent the right to conduct an
independent audit of any of the above financial information at its own expense
at any time; provided, however, that if any such audit shall reveal an error in
excess of three and one-half percent (31/2%), such audit
expense shall be borne solely by the Borrower or Member which is being audited.

 

(c)           To
grant (and to cause each Member to grant) Agent and its advisors the right upon
reasonable prior notice during reasonable business hours at the Premises or at
Borrower’s or such Member’s office to examine the records, books, management
and other papers of Borrower or such Member, as applicable, which reflect upon
such entity’s financial condition, and Agent and its advisors shall have the
right to make copies and extracts from the foregoing records and other papers.

 

SECTION 7.17       Compliance
with Legal Requirements.  (a)  To comply, and cause the Mortgaged Property
to comply at all times with all Legal Requirements applicable thereto,
including, without limitation, obtaining and complying with all conditions and
requirements of all Governmental Approvals then necessary for the construction,
use, occupancy and operation of the Mortgaged Property or any portion of the
Mortgaged Property or the business thereon, and to preserve and maintain the
same in full force and effect; and to provide Agent with evidence reasonably
satisfactory to Agent that the Mortgaged Property complies with all Legal
Requirements applicable thereto. 
Without limiting the foregoing, Borrower shall strictly comply (and
shall cause each Member to comply) to the extent applicable with the
requirements of the Americans with Disabilities Act of 1990, all state and
local laws and ordinances related to handicapped access and all rules,
regulations, and orders issued pursuant thereto including, without limitation,
the Americans with Disabilities Act Accessibility Guidelines for Buildings and
Facilities.

 

(b)           Borrower
or the applicable Member will have the right to contest the validity or
application of any of the Legal Requirements affecting the Mortgaged Property
by appropriate legal proceedings, so long as: 
(1) such legal 

 

90

 

proceedings shall be prosecuted with diligence by
Borrower (or such Member) and shall operate to prevent any taking or closing or
shutting down of the Premises or any portion thereof by any Governmental
Authority, and shall have the effect of staying any type of sale or forfeiture
of the Premises, (2) Borrower (or such Member) shall have deposited with
or delivered to Agent, as applicable, cash collateral, a bond or such other
security reasonably satisfactory to Agent on such terms as may be reasonably
satisfactory to Agent and (if applicable) in an amount as may be deemed
reasonably necessary by Agent to pay for such contest and to pay for the cost
of compliance (if not yet paid) with such Legal Requirements, and any fines,
penalties, charges and interest thereon which may be awarded or assessed (which
amount may be increased at the request of Agent when Agent determines (in its
reasonable judgment) that a greater amount may be required to make such
payments), (3) such proceeding shall not subject Agent, any Lender or any
Borrower Entity to the risk of any criminal liability, (4) no Noticed
Default or Event of Default shall then exist under any Building Loan Document,
(5) Borrower (or such Member) gives Agent (x) reasonably continuous
notice upon the commencement and during the continuation of any such proceeding
of the status thereof, and (y) confirmation on such periodic basis as
Agent may request of the continuing satisfaction of the conditions set forth in
clauses (1) through (4) above, and (6) Borrower (or such Member)
shall have furnished to Agent all other items reasonably requested by Agent.  If Borrower (or such Member) shall fail at
any time to comply with the above conditions to contest or if the Premises or
any part thereof is, in the judgment of Agent, in any imminent danger of being
forfeited or lost, Agent may require Borrower (or such Member) to, and Borrower
(or such Member) will thereupon, comply with the Legal Requirement which is the
subject of the contest.  During the
continuance of an Event of Default, Agent may, at its option, credit all or any
part of any such cash, bond or other security then held by it to the
Indebtedness in such order as Agent may elect. 
Upon final determination of such contest, Borrower (or such Member) will
take all steps necessary to comply with any requirements arising therefrom and,
after final payment of all costs of such contest and any costs of compliance,
Agent shall return to Borrower (or such Member) any remaining security held by
Agent pursuant to the foregoing clause (2).

 

(c)           Without
limiting any other provision of this Section 7.17, each Borrower Entity
shall comply with all legal requirements relating to money laundering,
anti-terrorism, trade embargos and economic sanctions, now or hereafter in
effect.  Without limiting anything in
the foregoing sentence, no Borrower Entity shall take any action, or permit any
action to be taken, that would cause the representations and warranties in
Section 6.05(b) of this Agreement to become untrue or inaccurate at any time
during the term of the Loans.  Each
Borrower Entity shall notify Agent promptly after obtaining knowledge that the
representations and warranties in Section 6.05(b) of this Agreement may no
longer be accurate or that any other violation of the foregoing legal
requirements has occurred or is being investigated by any Governmental
Authority.  In connection with such an event,
each Borrower Entity shall comply with all legal requirements and directives of
Governmental Authorities and, at Agent’s request, provide to Agent copies of
all notices, reports and other communications exchanged with, or received from,
Governmental Authorities relating to such event.  Borrower shall also reimburse Agent and Lenders for all actual
reasonable expenses incurred by Agent in evaluating the effect of such an event
on the Loans and the collateral for the Loans, in 

 

91

 

obtaining any necessary license from Governmental
Authorities as may be necessary for Agent to enforce its rights under the Loan
Documents, and in complying with all legal requirements applicable to Agent or
any Lender as the result of the existence of such an event and for any
penalties or fines imposed upon Agent or any Lender as a result thereof.  All such expenses shall constitute
Reimbursable Costs.  Borrower agrees to
confirm the representation and warranty set forth in Section 6.05(b) hereof in
writing on an annual basis if requested by Agent to do so.

 

SECTION 7.18       Title.  Except to the extent permitted by Section 7.39 hereof, to
keep the Mortgaged Property free and clear of all Liens, other than the
Permitted Exceptions and the liens in favor of Agent, for the benefit of
Lenders, and to warrant and defend against the claims of all Persons
(a) the title to the Mortgaged Property and every part thereof and
(b) the validity and first priority (subject only to the Permitted
Exceptions) of any Lien under the Security Documents.

 

SECTION 7.19       Maintain Existence.  (a)  To maintain its existence in
good standing and make no changes in its organization or in any of its
organizational documents (except that (i) Borrower shall be permitted to
dissolve after all Units have been redeemed by the Members in accordance with
the provisions of this Agreement and the Project Loan Agreement and
(ii) Borrower shall be permitted to amend its organizational documents to
the extent necessary to reflect the withdrawal of NYTC Member from Borrower in
connection with the NYTC Units Redemption and the withdrawal of FC Member in
connection with the transaction described in Section 7.50 hereof, provided
that Borrower delivers (or causes to be delivered) documentation reflecting
such changes certified in such manner as Agent may reasonably request), and to
cause the same to be true with respect to the Members and, to the extent that a
failure to observe the foregoing covenant would constitute a Material Adverse
Effect, to cause the same to be true with respect to the Guarantors.

 

(b)           Except
as permitted by, and in accordance with, Sections 7.32, 7.46 and 7.50, to
not, without the Agent’s prior approval, convey or transfer any part of its
property, assets, or business to any other Person (and to cause the same to be
true with respect to the Members).

 

(c)           To
maintain all rights, privileges and franchises necessary or desirable in the
normal conduct of its business (and to cause the same to be true with respect
to the Members).

 

SECTION 7.20       Interest Rate Caps.  (a) 
Either (i) to the extent required by the first sentence of
Section 4.02(e)(7), to purchase, deliver to Agent and maintain the Initial
Advance Interest Rate Cap or (ii) if the Initial Interest Rate Cap is not
required to be purchased, to purchase, deliver to Agent and maintain an
interest rate cap (a “Future Advance Interest Rate Cap”) if the LIBOR Rate
equals or exceeds, at any time during the applicable six (6) month period (the
“Period”) set forth on
Schedule 2
hereto, the “trigger rate” for such period set forth on said Schedule 2,
which Future Advance Interest Rate Cap shall be in form and substance
reasonably acceptable to Agent, shall be with a counterparty reasonably
acceptable to Agent, shall cap the LIBOR Rate at the applicable 

 

92

 

rate set forth on said Schedule 2, and
shall have a term of the Period or the balance thereof remaining.  At any time that Borrower shall be required
to deliver to Agent a Future Advance Interest Rate Cap, Borrower shall also
deliver to Agent (1) an Assignment of Interest Rate Cap with respect
thereto, (2) a consent by the counterparty thereto to such Assignment of
Interest Rate Cap and (3) an opinion, in form and substance, and from
counsel, reasonably acceptable to Agent, as to the due authorization, execution
and delivery by Borrower and enforceability of, and other customary matters
with respect to, the Future Advance Interest Rate Cap and such Assignment of
Interest Rate Cap (but not as to any matter with respect to such counterparty
(other than the enforceability of such Future Advance Interest Rate Cap against
such counterparty)).  If Borrower
purchases any other interest rate caps, any interest rate management contracts
or any “hedge agreements”, Borrower shall make the deliveries referred to in
clauses (1), (2) and (3) of the preceding sentence with respect
thereto.  Notwithstanding anything to
the contrary in this Section 7.20, Borrower shall have the right, subject
to Agent’s prior reasonable consent to increase the “trigger rates” set forth
on said Schedule 2.

 

(b)           If
Borrower fails to perform its obligations under the first and second sentences
Section 7.20(a) within two (2) Business Days after it is required to do
so, Agent may, in its sole discretion and in addition to any other rights and
remedies it may have hereunder and under the other Loan Documents in connection
with such failure, purchase the required Future Advance Interest Rate Cap, in
which event Borrower shall be obligated to reimburse Agent for the cost
therefor.

 

SECTION 7.21       Further Assurance.  To execute and deliver promptly (and to
cause each other Borrower Entity to execute and deliver promptly) such
additional agreements and instruments and to take promptly such additional
actions as Agent may at any time and from time to time reasonably request in
order for Agent and Lenders to obtain the full benefits and rights granted or
intended or purported to be granted by this Agreement and the other Building
Loan Documents to which it (or such Borrower Entity) is a party, provided the same
do not change any such Borrower Entity’s liabilities, or decrease such Borrower
Entity’s rights, under the Building Loan Documents (other than, in each case,
to a de minimis extent).  In
furtherance of the foregoing, if at any time Agent has reason to believe that
the Building Loan is not secured or will or may not be secured by the Security
Documents as a first priority lien (subject only to the Permitted Exceptions)
or security interest on the collateral intended to be granted under such
Security Documents, then Borrower shall, within five (5) Business Days after
notice from Agent, do and shall cause each other Borrower Entity to do, all
things and matters reasonably necessary (including execution and delivery to
Agent of all further documents and performance of all other acts which Agent
deems reasonably necessary or appropriate) to assure to the satisfaction of
Agent that the Building Loan is secured with first priority liens or security
interests (subject only to the Permitted Exceptions) on the collateral intended
to be granted under such Security Documents.

 

SECTION 7.22       Budgets, Etc.  Not to change any line item in any Budget,
or the Construction Schedule without Agent’s prior reasonable consent
except to the extent expressly permitted hereunder.  Notwithstanding anything to the contrary 

 

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contained in this
Agreement, no request for Agent’s approval for any change in any Budget or in
the Construction Schedule shall be made if such change would also require the
approval of either Member or any third party (or if any such Member or third
party claims that such change requires its approval), unless such other
approval has previously been granted or a request for such other approval is
made concurrently with the request to Agent.

 

SECTION 7.23       Zoning, Easements and Restrictions;
Use; Alterations.  (a)  Not to (and to cause each other Borrower
Entity not to), without Agent’s prior approval, (i) initiate or support
any limiting change in the permitted uses of the Mortgaged Property (or to the
extent applicable, the zoning reclassification of the Mortgaged Property or
modification to the DUO Declaration) or any portion thereof, or seek any
variance under existing land use restrictions, laws, rules or regulations (or,
to the extent applicable, the zoning ordinances) applicable to the Mortgaged
Property, (ii) use or permit the use of the Mortgaged Property in a manner
that would cause a default under the terms of any Building Loan Documents to
which it is a party, or any Material Contracts (to the extent applicable),
Leases, Legal Requirements, Governmental Approvals or any Permitted Exceptions,
or the Equity Contribution Documents, (iii) modify, amend or supplement
any Permitted Exception in a manner adverse in any material respect to the
interests of Agent or Lenders, (iv) impose or permit or suffer the
imposition of any material restrictions, covenants or easements upon the
Mortgaged Property (other than the Permitted Exceptions), (v) execute or
file any subdivision plat affecting the Mortgaged Property, (vi) institute,
or permit the institution of, proceedings to alter any tax lot comprising the
Mortgaged Property except as contemplated by Section 7.43 hereof with
respect to Lot 15 and in connection with the Condominium Documents,
(vii) permit or suffer the Mortgaged Property to be used by the public or
any Person in such manner as might make possible a claim of adverse usage or
possession or of any implied dedication or implied easement, or
(viii) enter into any zoning lot merger agreement or similar agreement
affecting the Mortgaged Property.

 

(b)           Except
for the construction of the Premises in accordance with the terms of the
Building Loan Documents, not cause, suffer or permit, without Agent’s prior
approval (i) any material alteration of the Improvements except as
permitted by the terms of any Permitted Leases or (ii) any demolition or
removal of any portion of the Improvements or the Personal Property, except for
the removal in the ordinary course of business of items which are obsolete or
the removal of which was made for good-faith business reasons and shall not
adversely affect the use, operation or value of the Mortgaged Property.

 

SECTION 7.24       Laborers,
Subcontractors and Materialmen.  To
notify Agent immediately if Borrower receives any written default notice,
notice of lien or demand for past due payment from any laborer, subcontractor
or materialmen.  In addition, at any
time that any material dispute with any third party to a Material Contract
shall commence, Borrower shall advise Agent of the same in reasonable detail
and keep Agent reasonably informed as of the status thereof.

 

94

 

SECTION 7.25       Ownership
of Personalty.  To furnish to Agent
photocopies of the fully executed contracts, bills of sale, receipted vouchers
and agreements, or any of them, under which Borrower or any Member claims title
to the materials, articles, fixtures and other personal property used or to be
used in the construction or operation of the Premises.  Until Final Completion, the furnishing by
Borrower to Agent of a Draw Request together with all supporting documents
shall be sufficient to satisfy the foregoing covenant.

 

SECTION 7.26       Comply
with Other Building Loan Documents. 
To perform (and to cause each Member to perform) all of its obligations
under this Agreement and the other Building Loan Documents and all other
documents evidencing or securing the Building Loan (to the extent each is a
party thereto).

 

SECTION 7.27       Purchase
of Material Under Conditional Sale Contract.  Except for tenant fixtures or material or equipment installed by
a tenant pursuant to a Permitted Lease, not to permit any materials, equipment,
fixtures or any other part of the Mortgaged Property to be purchased or
installed under any security agreement or other arrangements wherein the seller
reserves or purports to reserve the right to remove or to repossess any such
items or to consider them personal property after their incorporation in the
Mortgaged Property, unless authorized by Agent in advance.

 

SECTION 7.28       Illegal
Activities.  Not to knowingly permit
any portion of the Mortgaged Property to be purchased, improved, constructed,
fixtured, equipped or furnished with proceeds of any criminal or other illegal
activity.

 

SECTION 7.29       Indemnification.  (a)  To defend, indemnify and hold
harmless each Indemnified Party from and against, and to reimburse the affected
Indemnified Party for, any and all losses, claims, damages, judgments, costs,
expenses (including reasonable attorney’s fees and disbursements), liabilities,
fines, penalties and charges (collectively, the “Losses”), which are or may be imposed, or
sustained by, such Indemnified Party by reason of any matter arising from any
Building Loan Document or the Building Loan (including, without limitation, by
reason of (w) the occurrence of any Default or Event of Default,
(x) any brokerage commissions, (y) any bodily injury or property
damage occurring in or upon or in the vicinity of the Mortgaged Property or the
Project or (z) any act performed or omitted to be performed hereunder),
except (i) costs and expenses of the type described in Section 7.06
for which Borrower is not liable under said Section 7.06 and (ii) to
the extent that such Losses resulted from a violation of law by any Indemnified
Party or from the gross negligence or willful misconduct of any Indemnified
Party.  In case any claim, action or
proceeding (a “Claim”)
is brought against an Indemnified Party in respect of which indemnification may
be sought by such Indemnified Party pursuant hereto, Agent shall give notice
thereof to Borrower, provided, however, that the failure of Agent to so notify
Borrower shall not limit or affect such Indemnified Party’s rights to be
indemnified pursuant to this Section 7.29 except to the extent Borrower is
materially prejudiced by such failure. 
Upon receipt of such notice of a Claim, Borrower shall, at its sole cost
and expense, in good faith investigate, prosecute, negotiate or defend any such
Claim with counsel and consultants selected by Borrower

 

95

 

and reasonably
satisfactory to such Indemnified Party (provided, however, that if the counsel
is required to be selected by Borrower’s insurance provider pursuant to the
express terms of the applicable insurance policy, such counsel shall be deemed
satisfactory to such Indemnified Party), which counsel may, without limiting
the rights of such Indemnified Party pursuant to the following sentences of
this Section 7.29, also represent Borrower in such investigation, action
or proceeding.  Borrower shall cause its
counsel to promptly keep Agent fully apprised of all matters relating to such
Claim including, without limitation, copying Agent on all material written
materials generated or received by such counsel, promptly responding to any
questions from Agent as to the status of such Claim, and causing such counsel
to agree that each Indemnified Party shall be entitled to rely upon the work
product of such counsel to the same extent that Borrower is entitled to rely
thereon; provided, however, that Borrower shall not be required to cause such
counsel, and such counsel shall not be required, to take any action that, in
the reasonable opinion of such counsel, could impair the attorney-client
privilege between Borrower and such counsel. 
In the alternative, such Indemnified Party may elect to conduct its own
defense through counsel and consultants of its own choosing and at the sole
expense of Borrower, but only if (A) such Indemnified Party determines
that the conduct of its defense by Borrower would be in conflict with its
interests or is reasonably likely to result in greater liability than would
result if such Indemnified Party were directly defending or prosecuting such
Claim, (B) Borrower refuses to investigate, prosecute, negotiate or
defend, (C) Borrower shall have failed, in such Indemnified Party’s
judgment, to investigate, prosecute, negotiate or defend the Claim diligently
and in good faith or (D) Borrower shall fail to keep Agent fully apprised
of the status of any Claim.  Borrower
may settle any Claim against such Indemnified Party without such Indemnified
Party’s approval, if (i) such settlement is without any liability, cost or
expense whatsoever to such Indemnified Party, (ii) the settlement does not
include or require any admission of liability or culpability by such Indemnified
Party under any federal, state or local statute or regulation, whether criminal
or civil in nature and (iii) Borrower obtains an effective written release
of liability for such Indemnified Party from the party to the Claim with whom
such settlement is being made, which release must be reasonably acceptable to
such Indemnified Party, and a dismissal with prejudice with respect to all
claims made by the party against such Indemnified Party in connection with such
Claim; provided, however, that if, pursuant to the immediately preceding
sentence, any Indemnified Party shall elect to conduct its defense through
counsel of its own choosing, such Indemnified Party shall have the right (with
the reasonable consent of Borrower if clause (A) only of the immediately
preceding sentence applies), to settle such Claim in good faith and Borrower
shall be responsible for any such settlement. 
Nothing contained herein shall be construed as requiring Agent or any
Indemnified Party to expend funds or incur costs to defend any Claim in connection
with the matters for which Agent or any Indemnified Party is entitled to
indemnification pursuant to this Section 7.29.  The obligations of Borrower hereunder shall specifically include
the obligation to expend its own funds, to incur costs in its own name and to
perform all actions as may be necessary to protect any Indemnified Party from
the necessity of expending its own funds, incurring costs or performing any
actions in connection with the matters for which such Indemnified Party is
entitled to indemnification hereunder. 
If, notwithstanding the foregoing, any Indemnified Party shall incur any
expenses hereunder,

 

96

 

Borrower shall reimburse
such Indemnified Party for all such amounts within ten (10) days after demand
therefor, and any amounts not so reimbursed shall bear interest at the Default
Rate from the date such amount was due until so paid.

 

(b)           The
obligations and liabilities of Borrower under this Section shall survive
the termination of this Agreement and the payment of all amounts payable under
the Building Loan Notes or the other Building Loan Documents.

 

SECTION 7.30       Condominium.  (a)  To (i) not amend or
supplement the Condominium Documents without Agent’s prior approval, such
approval not to be unreasonably withheld (Borrower and Agent hereby
acknowledging and confirming that (x) subject to clause (y) of this
parenthetical clause, Agent has approved the Condominium Declaration and the
Condominium By-Laws substantially in the form attached as Exhibit E to the
Operating Agreement, as the same is to be amended in accordance with the First
Amendment) and (y) Agent’s approval, not to be unreasonably withheld, shall be
required with respect to all portions of the Condominium Declaration and
Condominium By-Laws not yet finalized and therefore not contained in said
amended Exhibit E (e.g., Exhibits C, D and G of the Condominium
Declaration), (ii) cause the Condominium Documents to comply with all
applicable Legal Requirements, (iii) cause the Condominium Documents to be
filed in the appropriate public offices and the condominium thereunder to be
validly created on or prior to the achievement of Core and Shell Completion and
(vi) from and after the date that the condominium is created, diligently
enforce (and use diligent efforts to cause the condominium association to
enforce) the second sentence of Section 1 of Article IX of the Condominium
Declaration.

 

(b)           Without
the prior consent of Agent, neither Borrower nor any Member shall abandon or
change its plan for submission of the Mortgaged Property to the condominium
form of ownership.

 

(c)           Agent
shall, on Borrower’s request, and provided no Noticed Default or Event of
Default shall then exist, subordinate the lien of the Building Loan Mortgage to
the liens in favor of the condominium for common charges set forth in the
Condominium Declaration pursuant to the Condominium Subordination Agreement,
upon the satisfaction of the conditions enumerated below:

 

(i)            the NYTC Units Redemption shall have
occurred in accordance with Section 7.46(a) hereof;

 

(ii)           the Title Insurance Policy insuring
the Building Loan Mortgage shall have been endorsed to provide affirmative
insurance in the form of Exhibit N attached hereto, to the effect that the
Mortgaged Property constitutes a condominium validly created under the
Condominium Act, Agent shall have received an assurance letter from the Title
Companies in the form of Exhibit O hereto and Agent shall have received an
endorsement to the existing title policy to the effect that the spreading of
the Building Loan Mortgage and the

 

97

 

Project Loan Mortgage referred to below shall not
effect the validity or priority of such Mortgages;

 

(iii)          Borrower shall have duly executed and
delivered, or caused to be duly executed and delivered, to Agent (a) a
conditional assignment of Borrower’s rights under the Condominium Documents in
the form of Exhibit P hereto
and (b) a conditional resignation of each of the Managers (as defined in
the Condominium Declaration) of the condominium association in the form of Exhibit Q hereto;

 

(iv)          Agent shall have received an opinion
from counsel reasonably satisfactory to Agent which shall include opinions to
the effect that (A) the Condominium Documents satisfy all applicable
requirements of Governmental Authorities and have been duly executed and
delivered and are enforceable against and by the Borrower, (B) all Legal
Requirements relating to the formation of the condominium have been duly
satisfied and, assuming the recording of the Condominium Declaration and the
subordination of the Building Loan Mortgage and Project Loan Mortgage to the
Condominium Declaration pursuant to the Condominium Subordination Agreement,
the condominium has been duly and validly created and is existing in full force
and effect, (C) the assignment referred to in clause (iii) of this
subsection has been duly authorized, executed and delivered by Borrower
and is enforceable against Borrower and (D) the resignations referred to
in clause (iii) of this subsection are enforceable against said parties in
accordance with their respective terms;

 

(v)           the condominium which shall be
created by the Condominium Documents, together with Borrower, shall have
furnished to Agent, at no cost or expense to Agent, a blanket insurance policy
complying with the applicable requirements contained in the Building Loan
Mortgage;

 

(vi)          the condominium association shall have
(A) collaterally assigned its rights to Leases of rooftop and lobby spaces
and agreed to deposit all Rents therefrom (to the extent of FC Member’s
interest therein) into one of the Collection Accounts and (B) collaterally
assigned the rights to excess casualty proceeds (to the extent of FC Member’s
interest therein) to Agent for the benefit of Agent and Lenders, in each case
pursuant to an agreement in form and substance reasonably satisfactory to Agent
and Agent shall have received an opinion of counsel reasonably satisfactory to
Agent as to the due authorization, execution and delivery and enforceability of
such agreements and such other customary matters with respect thereto as Agent
may reasonably require;

 

(vii)         the Building Loan Mortgage shall have
been spread to cover the Severance Subleases to which FC Member is a party and
the Ground Lease shall be released from the lien thereof;

 

98

 

(viii)        the Lease Assignment (as defined in the
Ground Lease) shall have been duly executed and delivered;

 

(ix)           Agent shall have received such other
documents (including, without limitation, a title continuation), certificates,
instruments, opinions or assurances as Agent may reasonably request; and

 

(x)            Borrower shall have paid all
reasonable out of pocket costs and expenses incurred by Agent in connection
with the foregoing (including reasonable attorneys’ fees and disbursements).

 

(d)           Borrower
shall give Agent not less than ten (10) Business Days notice of any meeting of
the condominium board and shall cause Agent or any representative thereof to be
permitted to attend any such meeting. 
Upon reasonable notice by Agent, Borrower shall cause Agent or any
representative thereof to be permitted to inspect the books and records of the
Board of Managers and the FC Board of Managers (as each such term is defined in
the Condominium Documents).

 

SECTION 7.31       Developer.  To retain Developer or an Acceptable
Developer as the developer (or, from and after Substantial Completion, the
operator or manager and Person with principal responsibility and authority
(subject to veto rights over major decisions held by Persons with equity
interests in the Project) for leasing decisions) of the Project.

 

SECTION 7.32       No
Transfers or Encumbrances. 
(a)  Not to, without the prior approval of, (1) in the
case of Transfers contemplated by clause (i) of this subsection, the
Super-Majority Lenders, (2) in the case of Transfers contemplated by
clauses (ii) and (iii) of this subsection, but only if such Transfers
result in a Change in Control of any Member, the Majority Lenders, and
(3) in the case of all other Transfers, Agent:

 

(i)            cause or permit any sale,
conveyance, transfer, alienation, mortgage, encumbrance, pledge, hypothecation
or transfer of the Mortgaged Property or any portion thereof or interest
therein, other than (w) as provided under the Project Loan Documents,
(x) as permitted under Section 7.46 hereof, (y) as permitted
under Sections 7.32(b) and 7.50 hereof or (z) as referred to in
Section 7.27 hereof with respect to tenant fixtures;

 

(ii)           cause or permit any direct or
indirect sale, conveyance, transfer, alienation, mortgage, encumbrance, pledge
or hypothecation of, or granting of any security interest by any of the direct
or indirect members of Borrower (or other legal or beneficial holders of direct
or indirect equity interests in Borrower) in, all or any portion of such
member’s (or such other holder’s) interest in Borrower or the right to receive
distributions (directly or indirectly) from Borrower, other than as provided
under the Equity Contribution Documents;

 

99

 

(iii)          cause or permit any Person not now a
Member of Borrower to become a member in or manager of Borrower, and the
ultimate beneficial ownership of any Borrower Entity shall not be changed or
altered, by sale, conveyance, transfer, alienation, mortgage, encumbrance,
pledge, hypothecation, foreclosure, issuance of additional ownership or
beneficial interests or otherwise, from the ultimate beneficial ownership on
the date hereof; or

 

(iv)          cause or permit a declaration of
easements and/or condominium to be filed with respect to or recorded against
the Mortgaged Property (other than in accordance with Section 7.30
hereof).

 

Any transaction covered by the foregoing clauses (i) –
(iv) shall hereinafter be referred to as a “Transfer”; provided, however, that a
Permitted Lease shall not be deemed to constitute a “Transfer.” 
A Transfer shall be deemed to include, without limitation:  (i) an installment sales agreement
wherein the applicable Person agrees to sell the applicable property or
interest or any part thereof for a price to be paid in installments, and
(ii) an agreement by any Borrower Entity leasing all or a substantial part
of the Mortgaged Property for other than actual occupancy by a tenant or a
sale, assignment or other transfer of, or the grant of a security interest in,
any Borrower Entity’s right, title and interest in and to any Lease or any
rent, revenues, issues, earnings, profits or income thereof.

 

(b)           Notwithstanding
the foregoing but, subject to subsections (c) and (d) below, the
following transactions (collectively, “Permitted Transfers”) will be permitted:

 

(i)            any transfers of equity interests in
any entity that is a direct or indirect equity interest holder in Borrower, so
long as the equity interests in such entity are traded on a nationally
recognized exchange.  If such entity’s
equity interests are no longer listed on a nationally recognized exchange (it
being understood that any transaction or series of transactions that result in
the delisting of the shares of such entity shall not be a Permitted Transfer)
any Transfer of direct or indirect equity interests in such entity shall be a
Permitted Transfer if such Transfer does not, individually or in the aggregate
with other such prior Transfers, result in a Change of Control of Borrower or
either Member;

 

(ii)           any Transfer permitted by
Section 8.01(b) of the Operating Agreement, Section 5.06(d)(3), Section
8.02(a) and Section 8.02(b)(ii) of the FC Operating Agreement, and any Transfer
occurring as a result of the exercise of any remedies by the Extension Loan
Lender under the Extension Loan Documents. 
Notwithstanding the immediately preceding sentence, (A) Transfers
permitted by the Recognition Agreements which are not otherwise Permitted
Transfers hereunder shall not be Permitted Transfers, and (B) Transfers
permitted by Section 5.06(d)(3) of the FC Operating Agreement shall only be a
Permitted Transfer as long as ING Member is the owner of the Mezzanine Loan (as
defined in the FC Operating Agreement) and ING Member is controlled by ING.

 

100

 

Borrower acknowledges and confirms that Transfers
permitted by the Condominium Documents which are not otherwise Permitted
Transfers hereunder shall not be Permitted Transfers;

 

(iii)          any Transfer (including, without
limitation, a Transfer that results from the foreclosure by a Member of another
Member’s membership interests in Borrower) of interests between the Members;

 

(iv)          simultaneously with the release of any
Unit pursuant to Section 7.46 hereof or the redemption of the FC Units in
accordance with Section 7.50 hereof, the redemption of the interest in
Borrower held by the applicable Member; and

 

(v)           any transfer of interests in FC
Member by ING Member to FC 41st Street.

 

Notwithstanding the foregoing, a Permitted Transfer may occur only if
(y) Agent shall be provided with at least ten (10) Business Days prior
notice of such Transfer, together with all information reasonably requested by
Agent with respect to such Transfer, and a diagram showing the structure of the
affected entities after the contemplated Transfer and a list of the names,
types of interests and percentages of ownership of all owners of interests in
the applicable entities after the contemplated Transfer; and (z) all
reasonable, third-party out-of-pocket fees and costs incurred by Agent in
connection with the review of such Transfer to determine whether it is a
Permitted Transfer or to obtain the consent of Agent if required, including,
without limitation, attorneys’ fees and disbursements, shall be paid by
Borrower.

 

(c)           Borrower
acknowledges that Agent and Lenders (i) have examined and relied on the
creditworthiness and experience of the Borrower Entities in owning and
operating properties such as the Mortgaged Property in agreeing to make the
Building Loan, (ii) subject to the foregoing provisions of this
Section 7.32, will continue to rely on such Borrower Entities’ direct and
indirect ownership of the Mortgaged Property as a means of maintaining the
value of the Mortgaged Property as security for repayment of the Building Loan,
(iii) have a valid interest in maintaining the value of the Mortgaged
Property so as to ensure that, should Borrower default in the repayment of the
Building Loan, Lenders can recover the Building Loan by a sale of the Mortgaged
Property, and (iv) shall not be required to demonstrate any actual
impairment of its security or any increased risk of default hereunder in order
to declare the Building Loan immediately due and payable upon the occurrence of
any Transfer which violates this Section 7.32.

 

(d)           Notwithstanding
anything to the contrary in this Section 7.32 or any other provision
hereof, if (1) a Permitted Transfer (or any other Transfer approved in
accordance with Section 7.32(a) hereof) results in FC Guarantor not owning any
direct or indirect interest in the Mortgaged Property, (2) no Noticed
Default or Event of Default shall then exist and (3) Borrower causes another Person
(with liquidity, net worth and, if rated by S&P (or by Moody’s, if not
rated by S&P), a long-

 

101

 

term debt rating equal to or greater than the net
worth, liquidity and, if applicable, the long-term debt rating by S&P or
Moody’s (as applicable) of FC Guarantor at the time of such Permitted Transfer
or Transfer) to execute and deliver a non-recourse carveouts guaranty
substantially in the form of the FC Non-Recourse Carveouts Guaranty, mutatis
mutandis, and (unless Final Completion has already been achieved), a
completion guaranty substantially in the form of the FC Completion Guaranty, mutatis
mutandis, and such guarantees are accompanied by an opinion of counsel
reasonably acceptable to Agent covering due authorization, execution and
delivery, enforceability and other customary matters with respect to such
guarantees, then Agent shall release the FC Guarantor from liability under the
Non-Recourse Carveouts Guaranty and (if applicable) the FC Completion Guaranty
and, from and after such date, all references to the FC Non-Recourse Carveouts
Guaranty, the FC Completion Guaranty and FC Guarantor shall instead be
references to such non-recourse carveouts guaranty, such completion guaranty
and such Person.

 

(e)           Notwithstanding
anything to the contrary in this Agreement, if an Event of Default caused by FC
Guarantor under Section 9.01(e), (f)(x) or (q) hereof occurs or if an Event of
Default occurs as a result of a breach by FC Guarantor of paragraph 8 of
the FC Completion Guaranty or Section 4 of the FC Non-Recourse Carveouts
Guaranty, and Borrower shall cause another Person (with liquidity, net worth
and, if rated by S&P (or by Moody’s, if not rated by S&P), a long-term
debt rating equal to or greater than the net worth, liquidity and, if
applicable, the long-term debt rating by S&P or Moody’s (as applicable) of
FC Guarantor at the time of such Event of Default) to execute and deliver,
within ten (10) Business Days of such Event of Default, a non-recourse
carveouts guaranty substantially in the form of the FC Non-Recourse Carveouts
Guaranty, mutatis mutandis, and (unless Final Completion has already been
achieved), a completion guaranty substantially in the form of the FC Completion
Guaranty, mutatis mutandis, and such guaranties are accompanied by an opinion of
counsel reasonably acceptable to Agent covering due authorization, execution
and delivery, enforceability and other customary matters with respect to such
guaranties and, in the case of an Event of Default that occurs as a result of a
breach of said paragraph 8 of the FC Completion Guaranty or said Section 4 of
the FC Non-Recourse Carveouts Guaranty only, a reimbursement to Agent for any
losses or expenses already suffered by Agent as a result of any such breach and
an indemnity agreement in form and substance reasonably satisfactory to Agent
and such Person (which indemnity agreement may be included in such non-recourse
carveouts guaranty, but which shall in any event be covered in the opinion of
counsel referenced above) pursuant to which such Person shall agree to
indemnify Agent for any subsequent losses or expenses Agent suffers as a result
of such a breach, then such Event of Default shall be deemed to have been
cured, and, from and after such date, all references to the FC Non-Recourse
Carveouts Guaranty and (if applicable) the FC Completion Guaranty, and FC
Guarantor shall instead be references to such non-recourse carveouts guaranty,
such completion guaranty (if applicable) and such Person.

 

(f)            Agent’s
approval rights under this Section shall apply to every future Transfer,
whether voluntary or not, and whether or not Agent has approved

 

102

 

any prior Transfer. 
Any Transfer made in contravention of this Section shall be null
and void and of no force and effect.

 

SECTION 7.33       No
Distributions.  To not make any
distributions or other payments or disbursements to any Borrower Entity or
Affiliates of any Borrower Entity until the Building Loan has been repaid in
full, other than (a) distributions of the payments permitted under
Section 3.05(d) hereof and Section 3.05(d) of the Project Loan
Agreement, (b) payments provided for under the Collection Accounts
Agreement and the Security Deposit Accounts Agreement, (c) the payment to
FC 41st Street, with Initial Required Equity Funds, of a $545,000
construction financing fee that is part of the “Financing Fees and
Out-of-Pocket” line item in the FC Units Budget, (d) payments (through FC
Member) to FC 41st Street and ING Member of the $14 million site management fee
covered by the $14 million “Site Management” line item on the FC Units Budget,
but only (x) prior to the first Advance hereunder, to the extent of actual
out-of-pocket costs incurred, in connection with site management activities
undertaken by FC 41st Street and ING Member, and reasonably approved by Agent
and (y) from and after the first Advance hereunder, in accordance with
Section 3.05(d) of the Project Loan Agreement, (e) distributions to FC
Member under Section 3.01(b) of the Operating Agreement, distributions and
reimbursements to NYTC Member under Sections 3.01(c) and 3.01(e) of the
Operating Agreement, distributions to ING Member under Sections 3.02(a)(2)
and 3.02(d)(2) of the FC Operating Agreement and distributions pursuant to
Section 3.02(c) of the FC Operating Agreement, and (f) repayments of the Equity
Contribution (including interest thereon).

 

SECTION 7.34       Estoppels.  (a) To execute (and to cause each other
Borrower Entity to execute) and deliver to Agent, within ten (10) days after
request therefor is made by Agent, an estoppel certificate to Agent for the
benefit of Lenders containing the following information:

 

(i)            Each estoppel certificate from
Borrower shall be duly acknowledged and certified by Borrower, and shall set
forth:  (1) the original maximum
principal amount of the Building Loan; (2) the aggregate amount of all
Advances therefore made with respect to the Building Loan and the then
Outstanding Principal amount; (3) the maturity date of the Building Loan;
(4) the date through which installments of interest and/or principal (if
any) have been paid; (5) that the Loan Documents are in full force and
effect with no Default or Event of Default by Borrower under any of the Loan
Documents (or, if any such Default or Event of Default by Borrower shall exist,
specifying the nature thereof); (6) that there are no offsets or defenses
or counterclaims against the payment of the Loans (or if any such offset,
defense or counterclaim shall exist, specifying the nature thereof);
(7) that the Loan Documents to which Borrower is a party are the valid,
legal and binding obligations of Borrower, and have not been modified or
amended (or if any such modification has occurred, specifying the nature
thereof); (8) that the Guaranteed Maximum Price Contract, each other
Material Contract, and Lease to which Borrower is a party is in full force and
effect, and has not been modified or amended (except with the approval of
Agent, if required under the Loan Documents), and that there are no defaults or
events

 

103

 

with which the passage of
time or the giving of notice or both would constitute an event of default by
Borrower under such Guaranteed Maximum Price Contract, Material Contract, or
Lease by Borrower, and to Borrower’s Knowledge, by the third party or parties
thereto (or, if any such default or event shall exist, specifying the nature
thereof); (9) that the Guaranteed Maximum Price Contract, Material
Contracts, and Leases to which Borrower is a party are valid, legal and binding
obligations of Borrower; and (10) and any other matters reasonably requested
by Agent.

 

(ii)           Each estoppel certificate from any
other Borrower Entity shall be duly acknowledged and certified by such Borrower
Entity and shall set forth (1) a statement reaffirming all representations
and warranties of such Borrower Entity provided herein and in the other Loan
Documents (or, to the extent of any changes to any such representations and
warranties, specifying such changes); (2) that the Loan Documents to which
the applicable Borrower Entity is a party are in full force and effect and that
no Default or Event of Default by such Borrower Entity exists under any such
Loan Documents (or if any such Default or Event of Default shall exist,
specifying the nature thereof); (3) that there are no offsets or defenses
or counterclaims against such Borrower Entity’s obligations under the Loan
Documents to which it is a party (and if any such offset, defense or
counterclaim shall exist, specifying the nature thereof); (4) that the
Loan Documents to which such Borrower Entity is a party are the valid, legal
and binding obligations of such Borrower Entity, and have not been modified or
amended (or if any such modification has occurred, specifying the nature
thereof); (5) that each Material Contract and Lease to which such Borrower
Entity is a party is in full force and effect, and has not been modified or
amended (except with the approval of Agent, if required under the Loan
Documents), and that there are no defaults or events with which the passage of
time or the giving of notice or both would constitute an event of default under
such Material Contract or Lease by such Borrower Entity, and to such Borrower
Entity’s knowledge, by the third party or parties thereto (or, if any such
default or event shall exist, specifying the nature thereof); (6) that the
Material Contracts and Leases to which such Borrower Entity is a party are
valid, legal and binding obligations of such Borrower Entity; and (7) any
other matters reasonably requested by Agent.

 

(b)           To
request that (i) the New York City Transit Authority (and to use commercially
reasonable efforts (without expenditure of any money, other than to a de
minimis extent) to cause the New York City Transit Authority) to execute and
deliver to Agent an estoppel certificate substantially in the form of the Subway
Agreement Estoppel delivered pursuant to Section 4.01(w)(iii)(1) hereof, (ii)
ESDC, Ground Lessor and the City of New York (and to use commercially
reasonably efforts (without expenditure of any money, other than to a de
minimis extent) to cause ESDC, Ground Lessor and the City of New York) to
execute and deliver to Agent an estoppel substantially in the form of the
Public Project Agreements Estoppel delivered pursuant to Section
4.01(w)(iii)(2) hereof, in each case within ten (10) days after the request therefor
is made and (iii) Ground Lessor execute and deliver an estoppel with
respect to the Ground Lease.

 

104

 

(c)           Upon
the request of Agent (which shall not be made more than quarterly) to cause the
Tenant under any Major Lease to deliver an estoppel certificate substantially
in the form attached hereto as Exhibit K.

 

SECTION 7.35       Extension
Loan Documents.  (i) To cause FC
Member to timely comply with its obligations under the first two sentences of
Section 6.03 of the Operating Agreement, (ii) to use diligent efforts to
satisfy, or cause to be satisfied, as promptly as practical, the Extension Loan
Conditions described in clauses (b) and (d) of the definition thereto and to
use diligent efforts to cause the achievement of the Completion Date, (iii) to
not amend, and to cause any Borrower Entity which is a party thereto not to
amend, the Extension Loan Documents, or assign, or permit any other Borrower
Entity which is a party thereto or the Extension Loan Lender to assign, its
rights or obligations under the executed Extension Loan Documents without the
prior approval of Agent (and the Majority Lenders, if such assignment relates
to the interest of the Extension Loan Lender), (iv) to cause to be provided to
Agent copies of any communications given to or received from Extension Loan
Lender under the Extension Loan Documents, (v) to notify Agent promptly of the
occurrence of any default under the Extension Loan Documents, (vi) to not
permit FC Member to enter into any documents in connection with the Extension
Loan unless Agent shall have given its prior approval of such documents (Agent
hereby acknowledging that Extension Loan Documents substantially in the forms
of Exhibits Q and S to the FC Operating Agreement are satisfactory to it),
(vii) to cause the Extension Loan Condition described in clause (c) of the
definition of Extension Loan Conditions to be satisfied no later than the date
that Core and Shell Completion is achieved and to cause the Extension Loan
Condition described in clause (e) of the definition of Extension Loan
Conditions to be satisfied no later than the Completion Date, and (viii) to
cause the Extension Loan to be made within one hundred and twenty (120) days
following satisfaction of the Extension Loan Conditions.

 

SECTION 7.36       Single
Purpose Entity.  Until such time as
the Building Loan is paid in full, Borrower:

 

(a)           except
as referred to in Section 7.19(a)(ii) hereof, has not and will not amend,
modify or otherwise change its operating agreement or formation agreement or
certificate of formation without the approval of Agent, which approval shall
not be unreasonably withheld or delayed;

 

(b)           except
as referred to in Section 7.19(a)(i) hereof, has not and will not
enter into any transaction of merger or consolidation, or liquidate or dissolve
itself (or suffer any liquidation or dissolution), or acquire by purchase or
otherwise all or substantially all the business or assets of, or any stock or
other evidence of beneficial ownership of, any Person;

 

(c)           has
not and will not guarantee, pledge its assets for the benefit of, or otherwise
become liable for or in connection with, any obligation of any Person;

 

105

 

(d)           has
not owned and will not own any asset other than (i) the Mortgaged Property
and (ii) incidental personal property in connection with the construction
or operation of the Mortgaged Property;

 

(e)           has
not engaged and will not engage, directly or indirectly, in any business other
than the acquisition, development, construction, ownership, management and
operation of the Mortgaged Property;

 

(f)            has
not entered into and will not enter into any contract or agreement (excluding
the Development Agreements) with any of its officers, principals, employees,
Members or Affiliates or any Affiliate of any Borrower Entity except upon terms
and conditions that are intrinsically fair and substantially similar to those
that would be available on an arm’s-length basis with third parties (each, a “Permitted Affiliate Contract”);

 

(g)           has
not incurred, assumed or created and will not incur, assume or create any debt,
secured or unsecured, direct or contingent (including guaranteeing any
obligation), other than (i) the Building Loan, (ii) the Project Loan,
(iii) any Interest Rate Cap and (iv) unsecured trade payables or
accrued expenses or other obligations incurred in the ordinary course of
business in connection with the developing, constructing and operating of the
Mortgaged Property; no other debt (other than the Extension Loan) will be
secured (senior, subordinate or pari passu) by the Mortgaged Property;

 

(h)           has
not made and will not make any loans or advances to any third party (including
any Affiliate);

 

(i)            is
and will be, solvent and pay its debts from its assets as the same shall become
due, except for those being contested in good faith by appropriate proceedings;

 

(j)            has
done or caused to be done and will do all things necessary to preserve its
existence;

 

(k)           will
conduct and operate its business as presently, and as presently contemplated to
be, conducted and operated;

 

(l)            will
maintain financial statements, books and records and bank accounts separate
from those of its Affiliates;

 

(m)          will
be, and at all times will hold itself out to the public as, a legal entity
separate and distinct from any other entity (including any Affiliate thereof);

 

(n)           will
file its own tax returns;

 

(o)           will
maintain adequate capital for the normal obligations reasonably foreseeable in
a business of its size and character and in light of its contemplated business
operations;

 

106

 

(p)           will
not seek the dissolution or winding up, in whole or in part, of itself or the
Members, except as contemplated by Section 7.19(a) hereof;

 

(q)           will
not commingle its funds and other assets with those of any Affiliate or any
other Person;

 

(r)            has
maintained, and will maintain, its assets in such a manner that it is not
costly or difficult to segregate, ascertain or identify such assets from those
of any Affiliate or any other Person;

 

(s)           has
not, and will not, hold itself out to be responsible for the debts or obligations
of any other Person (including any Affiliate);

 

(t)            will
not do any act which would make it impossible to carry on its ordinary business
or the business of the Members;

 

(u)           will
not possess the Mortgaged Property or incidental personal property necessary
for the operation of the Mortgaged Property for other than a business or
company purpose;

 

(v)           will
not sell, encumber or otherwise dispose of any part of the Mortgaged Property
or incidental personal property necessary for the operation of the Mortgaged
Property, except for the transfers referred to in
Section 7.32(a)(i) hereof;

 

(w)          will
not hold title to its assets other than in its name;

 

(x)            will
not institute proceedings to be adjudicated bankrupt or insolvent; or consent
to the institution of bankruptcy or insolvency proceedings against it; or file
a petition seeking, or consent to, reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief under any applicable
federal or state law relating to bankruptcy or insolvency; or consent to the
appointment of a Bankruptcy Assignee of itself or the Members or a substantial
part of its or the Members’ property, or of all or any part of the rents,
revenues, issues, earnings, profits or income thereof; or make any assignment
for the benefit of creditors; or admit in writing its inability to pay its
debts generally as they become due; or take any action in furtherance of any
such action; and

 

(y)           will
not acquire any stock or assets of, or form a partnership, joint venture or
other entity with, any Person without Agent’s prior approval.

 

The foregoing provisions of this Section 7.36 shall be incorporated
into, and be maintained in, Borrower’s Articles of Organization for as long as
any Borrower Entity is indebted to Agent or the Lenders under any Building Loan
Document.

 

SECTION 7.37       Labor
Harmony.  Borrower will not
terminate or amend the No-Strikes Agreement, will diligently enforce the
provisions thereof binding on the other party thereto, and will use diligent
efforts to cause the General Contractor to (x) undertake to contract with
only subcontractors and, if applicable, suppliers who utilize

 

107

 

labor having compatible
affiliations with those currently available in the New York City
geographical area, and (y) take all appropriate and lawful steps so that
all union and bargaining agreements are honored by the General Contractor and
its subcontractors and, if applicable, the General Contractor’s suppliers and
that no job site disruption or unrest ensues.

 

SECTION 7.38       Required
Notices.  To give (or to cause to be
given) notice to Agent promptly of:

 

(a)           any
material notice, pleading or other information pertaining to the Pending
Litigations received by Borrower or either Member and any other material actual
or threatened (in writing) litigation, investigation or proceeding affecting
Borrower, either Member or the Mortgaged Property;

 

(b)           any
material notice received by any Borrower or any Member from any Governmental
Authority relating to the Property;

 

(c)           any
event or occurrence which could reasonably be expected to (i) delay
“Substantial Completion” (as defined in the Ground Lease) beyond the Fixed
Substantial Completion Date or cause the Project not to achieve Final
Completion by the Maturity Date or (ii) otherwise cause a Material Adverse
Effect; and

 

(d)           any
material notice given or received in connection with the Operating Agreement.

 

Each notice pursuant to this Section 7.38 shall be accompanied by
a statement of Borrower setting forth details of the occurrence referred to
therein and stating what action Borrower or the applicable Borrower Entity
proposes to take with respect thereto.

 

SECTION 7.39       Protection
Against Liens.  Within sixty
(60) days of obtaining knowledge thereof, to (i) pay and discharge,
(ii) bond over or (iii) cause the Title Companies to insure over, all
liens for labor, materials and services furnished to the Mortgaged Property and
all liens in favor of the condominium against any portion of the Mortgaged
Property for common charges that are past due and to take all actions
reasonably required to prevent the assertion of claims of Liens against the
Mortgaged Property.  Borrower
irrevocably appoints, designates and authorizes Agent (such agency being
coupled with an interest) with the authority (but no obligation) to file any
notice relating to claims of Liens that Agent deems advisable to protect its
interests under the Building Loan Documents. 
In the event that any stop notice or claim is asserted by any Person
furnishing labor, services, equipment or materials to the Mortgaged Property,
upon demand by Agent, Borrower shall take such action as Agent may require to
release Agent and/or Lenders from any obligation or liability with respect to
such stop notice or claim, including (i) obtaining a bond or other
security, in form, substance and amount satisfactory to Agent, or
(ii) paying such claim.

 

SECTION 7.40       Concrete,
Soil and Other Tests.  To perform
such soil, compaction, concrete and other tests (from time to time) as Agent or
Construction

 

108

 

Consultant may reasonably
require, in form and substance reasonably satisfactory to Construction
Consultant and Agent.

 

SECTION 7.41       ERISA.  (a) 
Not to (and to cause each Member not to) engage in a nonexempt
prohibited transaction as described in Section 406 of ERISA or
Section 4975 of the Code, or that would cause any obligation or action
taken or to be taken pursuant to the Building Loan Documents (including, but
not limited to, the exercise by Agent of any of its rights under the Building
Loan Documents) to constitute a nonexempt prohibited transaction under
Section 406 of ERISA or Section 4975 of the Code, or (b) not to
(and to cause each Member not to) qualify as an Employee Benefit Plan or
acquire any assets that constitute Plan Assets.

 

SECTION 7.42       Name;
Chief Executive Office.  To not (i)
change its legal name, (ii) use any trade name or do business under any name
other than its actual legal name set forth herein on the first page of this
Agreement, and (iii) without the prior consent of Agent, change the
mailing address, place of business or location of its chief executive office.

 

SECTION 7.43       No
Joint Assessment.  Not to suffer,
permit or initiate the joint assessment of the Premises (i) with any other
real property constituting a tax lot separate from the Premises (other than Lot
15), and (ii) unless required by applicable law, with anything which may
be deemed to constitute personal property, and not to cause or permit any other
procedure whereby the lien of any taxes which may be levied against such
personal property shall be assessed or levied or charged to the Premises.  Borrower or the Members shall use its or
their diligent efforts to subdivide Lot 15 into separate tax lots as soon as
practicable such that the portion of Lot 15 that is subject to the Building
Loan Mortgage is a separate tax lot.

 

SECTION 7.44       Permitted
Affiliate Contracts.  To provide
Agent with (a) notice of any Permitted Affiliate Contract at least ten
(10) days prior to execution thereof and (b) a copy of such Permitted Affiliate
Contract promptly after the execution thereof with no changes or modifications
from the draft previously submitted to Agent. 
No Permitted Affiliate Contract shall be amended or extended without the
prior approval of Agent, such approval not to be unreasonably withheld or
delayed.

 

SECTION 7.45       Payment
and Performance Bonds.  To obtain,
promptly deliver to Agent and maintain Payment and Performance Bonds for all
Payment and Performance Bond Contracts.

 

SECTION 7.46       NYTC
Units Release Provisions.  (a)  Provided that no Noticed Default or Event of
Default exists under any Building Loan Document or Project Loan Document, the
NYTC Units may be transferred to NYTC Member in redemption of NYTC Member’s
interest in Borrower, and upon such conveyance and redemption and the
satisfaction of the following conditions, (x) the releases and
terminations referred to in Section 7.46(d) hereof shall be effectuated,
(y) Agent shall modify the liens of the Building Loan Mortgage and Project
Loan Mortgage so that there shall exist a second priority mortgage encumbering
solely the FC Units, which mortgage shall be in the

 

109

 

amount of the Extension
Loan (and the Building Loan Notes and Project Loan Notes shall also be
appropriately severed to reflect the same) and (z) Agent and Lenders shall
assign such mortgages (and such severed notes) applicable to the FC Units to
Extension Loan Lender:

 

(1)           the Condominium Documents shall
have been filed in the appropriate public offices and the condominium
thereunder validly created under the Condominium Act, all of the conditions set
forth in Section 7.30(c) shall have been met (other than the condition set
forth in Section 7.30(c)(i)) and there shall be no remaining legal
restrictions under the Condominium Documents or under applicable law to such
conveyance and redemption;

 

(2)           Core and Shell Completion shall have
been achieved;

 

(3)           A temporary certificate of occupancy
for each of the Units (which may be a zero occupancy or core and shell
temporary certificate of occupancy) shall have been issued;

 

(4)           Agent shall have received not less
than thirty (30) days’ prior notice of the proposed conveyance and
redemption;

 

(5)           the NYTC Units will constitute one or
more tax lots separate and distinct from the tax lot or lots applicable to the
portion of the Premises encumbered by the lien of the remaining Building Loan
Mortgage;

 

(6)           Agent shall have received by wire
transfer of immediately available funds (A) an amount sufficient (after
application of such amount in accordance with Section 7.46(b) below) to
reduce the Remaining Loan Amount to $200,500,000.00 (less any prior principal
prepayments pursuant to Section 2.06 of the Building Loan Mortgage and
Section 2.06 of the Project Loan Mortgage); and (B) all amounts
required by clauses (x) and (y) of the first sentence of Section 3.12
hereof, which amounts shall be applied as provided in Section 7.46(b)
below;

 

(7)           Borrower shall have paid all
reasonable, third-party out of pocket costs and expenses incurred by Agent in
connection with such severance, assignment and release (including reasonable
attorneys’ fees and disbursements);

 

(8)           Agent shall have received an
endorsement to the existing title policy to the effect that the applicable
modifications of the Building Loan Mortgage and the Project Loan Mortgage and
the assignments and releases shall not cause a subordination, in whole or in
part, of the Building Loan Mortgage and Project Loan Mortgage as they affect
the remaining Units;

 

110

 

(9)           Borrower shall have paid any mortgage
tax or transfer taxes due, and properly completed and submitted any required
tax forms, in connection with the entering into of the Extension Loan and the
NYTC Units Redemption;

 

(10)         the redemption of the FC Units in
accordance with Section 7.50 hereof shall have occurred (or shall be
occurring simultaneously with the NYTC Units Redemption);

 

(11)         Borrower shall have delivered to Agent
all of the documents executed in connection with Extension Loan which shall be
in form and substance satisfactory to Agent, and an intercreditor agreement
between Extension Loan Lender and Agent, for itself and on behalf of Lenders,
with respect to the Extension Loan (the “Extension Loan Intercreditor Agreement”), substantially
in the form attached hereto as Exhibit R; and

 

(12)         Agent shall have received such other
opinions, documents, certificates, instruments, or assurances (including,
without limitation, any new UCC-1 Financing Statements) as Agent may reasonably
request in connection with the actions and events described in this
Section 7.46(a).

 

(b)           At
the option of NYTC Member, amounts received by Agent under clause (6) of
Section 7.46(a), shall, at NYTC Member’s option, (i) be immediately
used to prepay the Outstanding Principal and all accrued and unpaid interest
thereon in accordance with Section 3.12 hereof, or (ii) pursuant to
an agreement between NYTC Member and Agent reasonably satisfactory to Agent, be
held by Agent as additional collateral for the Building Loan and Project Loan
until a date selected by NYTC Member that is not later than the first Business
Day of the next succeeding month (and Borrower or NYTC Member shall also
deposit with Agent interest on such amount that will accrue through such date),
on which date such amounts (plus any interest earned thereon) shall be applied
to prepay the Outstanding Principal and accrued and unpaid interest in
accordance with Section 3.12 hereof. 
Notwithstanding the foregoing, any amounts paid pursuant to clause (6)
of this Section 7.46(b) in excess of the then Maximum Amount-NYTC shall be
disbursed to NYTC Member.

 

(c)           Upon
the release of the NYTC Units in accordance with the provisions of this
Section 7.46, (i) the NYTC Units shall be released from the liens of
the remaining Building Loan Mortgage and Project Loan Mortgage and from the
Building Loan Assignment of Leases and Project Loan Assignment of Leases and
(ii) the Assignment of Contracts – NYTC Member and the NYTC Non-Recourse
Carveouts Guaranty shall be deemed to have been automatically terminated and
NYTC Guarantor and NYTC Member shall have no further liability under the
Building Loan Documents or the Project Loan Documents and (iii) the Ground
Lease and the Severance Sublease to which NYTC Member is a party shall be
released from the lien of the Building Loan Mortgage and Project Loan Mortgage.

 

111

 

(d)           The
assignments of mortgages and endorsements of notes made pursuant to this
Section 7.46 shall be made without representations or warranties from, or
recourse to, Agent or the respective holders thereof; provided, however, that
Agent or such holder shall represent and warrant (x) that it owns each
note and mortgage being assigned free and clear of all liens and encumbrances
and (y) the outstanding principal amount of each note.

 

(e)           Agent
agrees to execute and deliver such additional agreements and instruments, as
may from time to time be reasonably requested by any Borrower Entity in order
to effectuate fully the transactions contemplated by and agreements made in
this Section 7.46.  All out of
pocket costs and expenses incurred by Agent in connection with such execution
and delivery shall be Reimbursable Costs.

 

SECTION 7.47       Security
Personnel.  To employ security
personnel or other means reasonably satisfactory to Agent to protect from theft
or vandalism all portions of the Project and all tools and building materials
stored at the Premises.

 

SECTION 7.48       Section 22
Affidavit.  To update the Lien Law
Affidavit to the extent necessary to comply with the Lien Law.

 

SECTION 7.49       Compliance
with Condominium Documents.  Upon
recording of the Condominium Declaration, Borrower will (or shall cause each
Member to) do the following:

 

(a)           (i)            Pay
on or before the expiration of any applicable grace or cure period all charges
due with respect to the Units remaining part of the Mortgaged Property
(including, without limitation, common charges and assessments) for which
Borrower or such Member is responsible under the Condominium Documents, and
will not, without the prior consent of Agent, vote at any meeting of such Unit
owners, or permit its representatives on the board of directors or other
governing board for such Unit to vote or take any action whatsoever respecting
(1) any partition of all or a part of the property subject to the
Condominium Declaration; (2) the nature and amount of any insurance
covering all or a part of such Unit and the disposition of any proceeds thereof
or the manner in which any condemnation or threat of condemnation of all or a
part of such Unit shall be defended or settled and the disposition of any award
or settlement in connection therewith; (3) the disposition of any excess
insurance or condemnation proceeds; (4) the acquisition of any interest
pursuant to any purchase option or right of first refusal in the Condominium
Documents; and (5) any amendment to said Condominium Documents and any
removal of such Unit from the provisions of the Condominium Act; and

 

(ii)           otherwise timely comply before the
lapse of any applicable notice and cure period with each of its obligations
under the Condominium Documents.

 

112

 

(b)           Promptly
send to Agent copies of any written notice received by Borrower or any Member
alleging any default by Borrower or any Member under, or noncompliance with,
any of the Condominium Documents and all modifications and amendments to the
Condominium Documents, and do all such acts and undertake all reasonable such
steps and institute all such proceedings as shall be reasonably necessary to
cure or avert such default and to forward to Agent any notices Borrower or any
Member receives in regard to any of the foregoing matters.

 

SECTION 7.50       Redemption
of FC Units.  Provided that no
Noticed Default or Event of Default exists under any Building Loan Document or
Project Loan Document, Agent shall permit each of the FC Units to be
transferred to the FC Member in redemption (or partial redemption) of FC
Member’s interest in Borrower, upon satisfaction of the following conditions
with respect to each applicable FC Unit:

 

(a)           the
Condominium Documents shall have been filed in the appropriate offices and the
condominium thereunder validly created under the Condominium Act, all of the
conditions set forth in Section 7.30(c) shall have been met and there
shall be no remaining legal restrictions under the Condominium Documents or
under applicable law to the conveyance and redemption of such Unit;

 

(b)           Agent
shall have received not less than ten (10) Business Days’ prior notice of
the proposed conveyance and redemption;

 

(c)           the
applicable Unit will constitute one or more tax lots separate and distinct from
the tax lot or lots applicable to the other portions of the Premises;

 

(d)           Borrower
or the FC Member shall have paid all out-of-pocket costs and expenses of Agent
in connection with such conveyance and redemption and the other activities
described in this Section 7.50;

 

(e)           the
FC Member shall have executed such documents of assumption with respect to the
Building Loan as Agent may reasonably require (including, without limitation,
an assumption of recourse liability to FC Member as successor to Borrower);

 

(f)            FC
Member shall have delivered evidence satisfactory to Agent that its articles of
organization shall contain the covenants set forth in Section 7.36 hereof,
mutatis  mutandis;

 

(g)           Borrower
shall have paid all transfer taxes applicable to such conveyance and
redemption;

 

(h)           Agent
shall have received such assurances as Agent shall reasonably require to the
effect that the conveyance and redemption shall not affect the validity or
priority of the Building Loan Mortgage or Project Loan Mortgage; and

 

113

 

(i)            Agent
shall have received such opinions (but not a non-consolidation opinion),
documents, certificates, instruments or assurances as Agent may reasonably
request.

 

SECTION 7.51       Title
Insurance Proceeds.  To direct to be
paid over to Agent any and all payments payable to Borrower or any Member under
any title insurance policy covering the Property with respect to any Unit which
then remains subject to the lien of a Building Loan Mortgage or Project Loan
Mortgage.  Such payments shall be
applied in accordance with the second- and third-to-last sentences of
Section 7.05 hereof (as if such payments were a Tax Refund); provided that
if Agent has a corresponding claim under its title insurance policy but has not
received payment, all references in said sentences to Borrower’s option, shall
be deemed to be references to Agent’s option.

 

SECTION 7.52       No
Indebtedness.  Not to permit any
Member to incur any indebtedness other than the Extension Loan and the
Mezzanine Loan (as defined in the FC Operating Agreement), and to not permit
its (or any Member’s) managers on any of the board of managers under the
Condominium Documents to vote to have the condominium incur indebtedness of
more than five hundred thousand dollars ($500,000.00) in the aggregate.

 

SECTION 7.53       Equity
Contribution.  (a) To enforce
(and to cause all other Borrower Entities parties thereto to enforce) the
provisions of the Equity Contribution Documents against NYTC Member and not to
waive or permit the waiver of any of the obligations of NYTC Member under the
Equity Contribution Documents, (b) to comply (and to cause all other
Borrower Entities parties thereto to comply) with the provisions of the Equity
Contribution Documents and to do no act which would relieve NYTC Member of its
obligations under the Equity Contribution Documents or cancel or terminate any
Equity Contribution Documents, (c) to cause to be taken all actions
necessary or appropriate in order to consummate the funding of the Equity
Contribution, (d) to make no amendments to, or assign rights or
obligations under, the Equity Contribution Documents without the prior approval
of Agent and (e) to cause to be provided to Agent copies of any
communications given to or received from NYTC Member under the Equity
Contribution Documents.

 

SECTION 7.54       Borrower
LCs.  To maintain the Borrower LCs
in full force and effect for so long as required under the Land Acquisition
Agreement.  Agent acknowledges that the
aggregate amount of the Borrower LCs shall be deemed to be Initial Required
Equity Funds that have been contributed unless any of the Borrower LCs or any
portion thereof (i) are permitted to be released to any Borrower Entity or
reduced or (ii) are no longer in full force or effect (unless, in each
case, such Borrower LCs shall have been fully-drawn upon).  Upon the occurrence of either of the events
described in the foregoing clauses (i) and (ii), then (a) Borrower shall
deposit with Agent the aggregate undrawn amount of such Borrower LCs or the
applicable portion thereof (any such deposit, a “Borrower LC Deposit”) (provided that
Agent and Borrower acknowledge that a Borrower LC Deposit shall constitute
Initial Required Equity Funds

 

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when deposited),
(b) Agent shall hold such amount in an interest bearing account,
(c) such deposited amount shall be treated in accordance with (and
Borrower shall comply with the requirements with respect thereto set forth in)
Section 3.06 hereof as if the Borrower LC Deposit were a Completion Deposit and
(d) the Borrower LC Deposit shall be applied to Building Loan Costs or
Project Loan Costs simultaneously with the immediately succeeding Advance as
Other Funds.  Notwithstanding the
immediately preceding sentence, if (A) a Borrower LC posted by NYTC Member
or any of its direct or indirect equity owners is permitted to be released or
reduced, no Person shall have any obligation to make a Borrower LC Deposit with
respect to such Borrower LC and (B) after all Initial Required Equity
Funds have been contributed, the aggregate face amount of any of the Borrower
LCs are required to be, and are, increased pursuant to the terms of the Land
Acquisition Agreement and thereafter any of such Borrower LCs (or any portion
thereof) are released to any Borrower Entity, the amount of such increase shall
not be required to be deposited as a Borrower LC Deposit.

 

SECTION 7.55       Additional Covenants Relating to
Ground Lease.

 

(a)           Without
the prior approval of Agent, which approval shall not be unreasonably withheld
or delayed, not to (i) amend, modify, surrender, terminate, cancel or waive any
material provision of the Ground Lease and (ii) to cause each Member not to
amend, modify, surrender, terminate, cancel or waive any material provision of
the Severance Subleases.

 

(b)           To
do, or cause to be done, all things necessary to preserve and keep unimpaired
the rights of Borrower as ground lessee under the Ground Lease, and the rights
of the NYTC Member and FC Member as ground sublessee under the applicable
Severance Sublease(s) and to prevent (and cause each Member to prevent) any
default under the Ground Lease, or the applicable Severance Sublease(s), as
applicable, within the applicable notice and grace periods or any termination,
surrender, cancellation, forfeiture, waiver or impairment thereof, as
applicable.  In the event of the failure
of Borrower or a Member to make any payment required to be made by it pursuant
to the provisions of the Ground Lease or the applicable Severance Sublease(s),
as applicable, or to keep, observe or perform, or cause to be kept, observed or
performed, any of the terms, covenants, provisions or agreements of the Ground
Lease, or the applicable Severance Sublease(s), as applicable, beyond any
applicable notice and grace periods, Borrower agrees (and shall cause each
Member to agree) that Agent may (but shall not be obligated to), without
notice, take any action on behalf of Borrower or such Member, as applicable,
make or cause to be kept, observed or performed any such terms, covenants,
provisions or agreements and to enter upon the Mortgaged Property and take all
such action thereof as may be necessary therefor, to the end that the rights of
Borrower in and to the leasehold estate created by the Ground Lease or to the
subleasehold estate created by the applicable Severance Sublease(s), as
applicable, shall be kept unimpaired and free from default and shall have, in
addition to any other remedy of Agent, the same rights and remedies in the
event of non-payment of any such sum by Borrower or such Member, as applicable,
within the applicable notice and grace periods as in the case of a default by
Borrower in the payment of any sums due under the Building Loan Notes or any
other Building Loan Documents.

 

115

 

(c)           To
enforce, or cause the enforcement of, the Ground Lease and the Severance
Subleases in a diligent and commercially reasonable manner and to promptly
notify Agent of the giving of any notice by any party to the Ground Lease or
the Severance Subleases to the other party thereto of any default by such other
party in the performance or observance of any of the terms, covenants or
conditions of the Ground Lease or the applicable Severance Sublease(s), as
applicable, to be performed or observed, and deliver to Agent a true copy of
each such notice and copies of all other notices, communications, plans,
specifications and other similar instruments received by or delivered to
Borrower or the applicable Member in connection therewith.  If, pursuant to the Ground Lease or any
Severance Sublease, the other party thereto shall deliver to Agent a copy of
any notice of default given to Borrower or the applicable Member, as
applicable, such notice shall constitute full authority and protection to Agent
for any action taken or omitted to be taken by Agent in good faith in reliance
thereon to cure such default.

 

(d)           If
any action or proceeding shall be instituted to evict Borrower or a Member or
to recover possession of the Mortgaged Property or for any other purpose
affecting the Ground Lease or any Severance Sublease, to, immediately upon
service thereof on or to Borrower or the applicable Member, as applicable,
deliver to Agent a true copy of each petition, summons, complaint, notice of
motion, order to show cause and of all other provisions, pleadings, and papers,
however designated, served in any such action or proceeding.

 

(e)           No
release or forbearance of any of Borrower’s obligations under the Ground Lease
or any Member’s obligations under the applicable Severance Sublease(s),
pursuant to the Ground Lease, a Severance Sublease or otherwise, shall release
Borrower, or such Member from any of its obligations under this Agreement or
any other Building Loan Document.  If
the Ground Lease or other Severance Sublease is canceled or terminated, and if
Agent or its nominee or any Lender shall acquire an interest in any new ground
lease or sublease of the property demised thereby, Borrower shall have no
right, title or interest in or to such new lease or sublease or to the
leasehold estate created by such new ground lease or sublease.  Agent shall be liable for the obligations of
Borrower arising under the Ground Lease and the Members arising under the
Severance Subleases for only that period of time which Agent is in possession
of the Mortgaged Property or has acquired, by foreclosure or otherwise, the
Mortgaged Property and is holding all of the Borrower’s (or such Member’s)
right, title and interest therein.

 

(f)            Borrower
shall (and shall cause the applicable Member to) give Agent prompt written
notice of the commencement of any arbitration or appraisal proceeding under and
pursuant to the provisions of the Ground Lease or any Severance Sublease.  Agent shall have the right to intervene and
participate in any such proceeding and Borrower shall confer (or cause the
applicable Member to confer) with Agent to the extent which Agent deems
necessary for the protection of Agent. 
Upon the written request of Agent, if an Event of Default exists,
Borrower will (or will cause the applicable Member to) exercise all rights of
arbitration conferred upon it by the Ground Lease or such Severance
Sublease.  Borrower or such Member shall
select an arbitrator who is reasonably approved in writing by Agent, provided,
however, that if at the time

 

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any such proceeding shall be commenced, an Event of
Default shall exist, Agent shall have, and is hereby granted, the sole and
exclusive right to designate and appoint on behalf of Borrower (or the
applicable Member) the arbitrator or arbitrators, or appraiser, in such
proceeding.

 

(g)           If
any action, proceeding, motion or notice shall be commenced or filed in respect
of the Ground Lessor or any other fee owner of the Mortgaged Property in
connection with any case under the Bankruptcy Code or under any other
Bankruptcy Law, Borrower (or the applicable Member) shall, after obtaining
knowledge thereof, promptly notify Agent. 
Borrower (or the applicable Member) shall promptly deliver to Agent,
following receipt, copies of any and all notices, summonses, pleadings,
applications and other documents received by Borrower (or the applicable
Member) in connection with any such action, proceeding, motion or notice and
any proceedings relating thereto. 
Borrower shall not commence any action, suit, proceeding or case, or
file any application or make any motion (unless such motion is for the purpose
of protecting the Ground Lease or the Severance Subleases and its value as
security for the Indebtedness and the Obligations).  Agent shall have the option, exercisable upon notice from Agent
to Borrower (or the applicable Member) and at Borrower’s (or the applicable
Member’s) expense, to conduct and control any such litigation with counsel of
Agent’s choice.  Agent may proceed in
its own name or in the name of Borrower (or the applicable Member), and
Borrower hereby assigns (and shall cause the Members to assign) to Agent, and
hereby agrees to execute (or caused to be executed) any and all powers,
authorizations, consents or other documents reasonably required by Agent in
connection with all of its (or their) rights in respect of, any claim, suit,
action or proceeding relating to the rejection of the Ground Lease or the
Severance Subleases by Ground Lessor, including, without limitation, the right
to file and prosecute, either in its own name or in the name of Borrower (or
the Members), any proofs of claim, complaints, motions, applications, notices
and other documents, in any such action, proceeding, motion or notice.  The assignments contained in the immediately
preceding sentence constitute a present, irrevocable and unconditional
assignment of the foregoing in such claims, suits, actions and proceedings, and
shall continue in effect until all of the Indebtedness shall have been
satisfied and discharged in full.

 

SECTION 7.56       Deliveries

 

(a)           To
deliver to Ground Lessor, in accordance with the notice provisions of the
Ground Lease, (i) on the date hereof, copies of the Building Loan Mortgage
and Building Loan Assignment of Leases, (ii) copies of all amendments
thereto within the time period set forth in Section 31.1(a)(i) of the
Ground Lease, and (iii) recorded copies of said mortgage, assignment and
amendments; and

 

(b)           to
deliver to the City of New York (i) within two (2) Business Days after the date
hereof, copies of the Building Loan Mortgage and Building Loan Assignment of
Leases and (ii) copies of all amendments thereto.

 

SECTION 7.57       Pledged
Accounts. 
(a)  (i) Prior to the earlier to occur of (A) execution
of the first Lease covering any space in the FC Units or any Common

 

117

 

Elements Leasable Space
and (B) the date of the Initial Construction Advance, (1) to execute and
deliver (and cause FC Member to execute and deliver) either (x) a pledge and
security agreement by and among Borrower, FC Member, Agent, for itself and on
behalf of Lenders, and Borrower’s Bank, substantially in the form of Exhibit S hereto,
subject to any modifications required by Borrower’s Bank that are reasonably
acceptable to Agent or (y) (I) a pledge and security agreement by and among
Borrower, FC Member and Agent, for itself and on behalf of Lenders
substantially in the form of Exhibit S as to matters contained therein that govern
the relationship between Agent, on the one hand, and Borrower and FC Member, on
the other hand, and the respective rights of each and (II) a control agreement
by and among Borrower, FC Member, Agent, for itself and on behalf of Lenders,
and Borrower’s Bank, in form and substance reasonably acceptable to Agent and
Borrower’s Bank (the document listed under clause (x) or the documents listed
under clause (y) collectively, the “Security Deposit Accounts Agreement”), and  (2) 
to deliver an opinion reasonably acceptable to Agent covering due
authorization, execution and delivery by Borrower and FC Member, security
interest perfection, enforceability and other customary matters with respect to
the Security Deposit Accounts Agreement (but in no event as to matters with
respect to Borrower’s Bank (other than enforceability of the Security Deposit
Accounts Agreement against Borrower’s Bank)).

 

(b)           (i) Prior
to the earlier to occur of (A) the receipt of the first Rents under any Lease
covered by Section 7.57(a) or any other amounts required under the Loan
Documents to be deposited into one of the Collection Accounts (as hereinafter
defined) and (B) the date of the Initial Construction Advance, (1) to execute
and deliver (and cause FC Member to execute and deliver) either (x) a pledge
and security agreement by and among Borrower, FC Member, Agent, for itself and
on behalf of Lenders, and Borrower’s Bank substantially in the form of Exhibit T hereto,
subject to any modifications requested by Borrower’s Bank that are reasonably
acceptable to Agent or (y) (I) a pledge and security agreement by and among
Borrower, FC Member and Agent, for itself and on behalf of Lenders
substantially in the form of Exhibit T as to matters contained therein that govern
the relationship between Agent, on the one hand, and Borrower and FC Member, on
the other hand, and the respective rights of each and (II) a control agreement
by and among Borrower, FC Member, Agent, for itself and on behalf of Lenders,
and Borrower’s Bank, in form and substance reasonably acceptable to Agent and
Borrower’s Bank (the document listed under clause (x) or the documents listed
under clause (y) collectively, the “Collection Accounts Agreement”)  and (2) to deliver an opinion reasonably
acceptable to Agent covering due authorization, execution and delivery by
Borrower and FC Member, security interest perfection, enforceability and other
customary matters with respect to the Collection Accounts Agreement (but in no
event with respect to matters as to Borrower’s Bank (other than enforceability
of the Collection Accounts Agreement against Borrower’s Bank)).

 

ARTICLE 8

 

THE AGENT

 

SECTION 8.01       Actions.  If Agent shall have reasonable cause to
believe that any action or proceeding related to the Mortgaged Property could,
if

 

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adversely determined,
have an adverse effect upon the rights or interests of Agent and/or Lenders
under this Agreement or any of the other Building Loan Documents, Agent shall
have the right to commence, appear in and defend such action or proceeding, and
in connection therewith Agent may incur costs and expenses, employ counsel, and
pay attorneys’ fees and disbursements. 
Borrower agrees to pay to Agent all reasonable costs and expenses
incurred by Agent in connection therewith, including without limitation
reasonable attorneys’ fees and disbursements, together with interest from the
due date thereof unless there has been a non-appealable judicial determination
that Agent’s commencement, appearance and defense was not proper.  Borrower’s obligation to pay such costs and
expenses shall be secured by the Security Documents.

 

SECTION 8.02       Non-Liability
of Agent and Lenders.  Borrower
acknowledges and agrees that:

 

(a)           any
inspections of the construction of the Project made by or through Agent,
Lenders or Construction Consultant are for purposes of administration of the
Building Loan and for the protection of Agent and/or Lenders only and neither
any Borrower Entity, nor any other Person is entitled to rely upon the same
with respect to the quality, adequacy or suitability of materials or
workmanship, conformity to the Plans and Specifications, state of completion or
otherwise; each Borrower Entity shall make its own inspections and judgments of
such construction to determine that the quality of the Project and all other
requirements of such construction are being performed in a manner satisfactory
to such Borrower Entity and Agent and in conformity with the Plans and
Specifications and all other requirements; and Borrower shall immediately
notify Agent should the same not be in conformity with any Plans and
Specifications and all other requirements;

 

(b)           by
accepting or approving anything required to be observed, performed, fulfilled
or given to Agent or Lenders pursuant to the Building Loan Documents, including
any certificate, statement of profit and loss or other financial statement,
survey, appraisal, lease, contract or insurance policy, neither Agent nor
Lenders shall be deemed to have warranted or represented the sufficiency,
legality, effectiveness or legal effect of the same, or of any term, provision
or condition thereof, and such acceptance or approval thereof shall not
constitute a warranty or representation to anyone with respect thereto by Agent
or Lenders;

 

(c)           neither
Agent nor Lenders undertake nor assume any responsibility or duty to any
Borrower Entity to select, review, inspect, supervise, pass judgment upon or
inform any Borrower Entity of any matter in connection with the Mortgaged
Property or the Project, including without limitation matters relating to the
quality, adequacy or suitability of (i) the Plans and Specifications,
(ii) the architects, contractors, subcontractors and materialmen employed
or utilized in connection with the construction of the Project, or the
workmanship of or the materials used by any of them, or (iii) the progress
or course of construction and its conformity or nonconformity with the Plans or
Specifications;

 

119

 

(d)           neither
Agent nor any Lender owes any duty of care to protect any Borrower Entity
against negligent, faulty, inadequate or defective building or constructions;
and

 

(e)           neither
Agent nor any Lender shall be directly or indirectly liable or responsible for
any loss, claim, cause of action, liability, indebtedness, damage or injury of
any kind or character to any Person or property arising from any construction
on, or occupancy or use of, any of the Mortgaged Property or the Project,
including without limitation any loss, claim, cause of action, liability,
indebtedness, damage or injury caused by, or arising from:  (i) any defect in any building,
structure, grading, fill, landscaping or other improvements thereon or in any
on-site or off-site improvement or other facility therein or thereon;
(ii) any act or omission of any Borrower Entity, the parties comprising
any such entity or any such entities’ agents, employees, independent
contractors, licensees or invitees (including, without limitation, the General
Contractor); (iii) any accident in or on the Premises or any fire, flood
or other casualty or hazard thereon; (iv) the failure of any Borrower
Entity or any of such entity’s licensees, employees, invitees, agents,
independent contractors or other representatives to maintain the Mortgaged
Property in a safe condition; and (v) any nuisance made or suffered on any
part of the Mortgaged Property. 
Notwithstanding the foregoing, Borrower shall not be liable for any
loss, claim, cause of action, liability, indebtedness, damage or injury which
(x) is directly attributable to any gross negligence or willful misconduct
of, or violation of law by, Agent, any Lender or any employee or agent of such
Agent or Lender or (y) is attributable to the period of time during which
Agent or any Lender is a “mortgagee in possession” or after the Mortgaged
Property has been foreclosed upon or has been transferred by deed-in-lieu
thereof to any third party purchaser.

 

SECTION 8.03       Authorization and Action.

 

(a)           By
its acceptance of an interest in the Building Loan, each Lender:
(i) agrees to the terms and conditions of this Agreement and all other
Building Loan Documents; (ii) authorizes and directs Agent to act on its
behalf in all respects under the Building Loan in connection with the Building
Loan Documents and the making of the Building Loan and to exercise all powers
under the Building Loan Documents and all powers reasonably incidental thereto,
except with respect to matters, items and decisions as to which a Major
Decision or Super-Major Decision is required (matters which are not Major
Decisions or Super-Major Decisions being hereinafter referred to as “Agent Decisions”) and
(iii) agrees to be bound by any acts of Agent in accordance with the
foregoing.  Without limiting the
generality of the foregoing and, notwithstanding any provision hereof to the
contrary, any and all actions relating to the construction and development of
the Project, including, without limitation, approval of changes to the Budgets,
Disbursement Schedule, Construction Schedule, the Plans and Specifications,
contracts and subcontracts and Payment and Performance Bonds; all decisions
with respect to releases of Units under Section 7.46; at any time there is
no outstanding Noticed Default or Event of Default, all decisions with respect
to the making of Advances; and all power to determine, declare, and send
notices of Defaults and Events of Default and to approve Leases (except to the
extent approval of a Lease is a Major Decision) and Material Contracts, shall
be Agent Decisions exclusively and shall

 

120

 

not constitute a Major
Decision or Super-Major Decision requiring the approval of any other
Lender.  Any provision of this Agreement
which grants to Agent the right to make a decision at its sole discretion or in
its reasonable judgment or at its option or any other similar provision is
intended, unless the context shall clearly require otherwise, to apply only to
relations between Borrower, the other Borrower Entities and Agent and the
respective rights and obligations of Borrower, the other Borrower Entities and
Agent hereunder and shall not apply to the relations between Agent and the
Lenders or the respective rights and obligations of Agent and the Lenders
hereunder.

 

(b)           As
to any Major Decision or Super-Major Decision, Agent shall not be required to
exercise any discretion or take any action, but shall be required to act or to
refrain from acting (and shall be fully protected in so acting or refraining
from acting) upon the instructions of the Majority Lenders (in the case of any
Major Decision) or the Super-Majority Lenders (in the case of Super-Major
Decision), provided, however, that Agent shall not be required to take any
action which exposes Agent to personal liability or which is contrary to this
Agreement or applicable law.

 

(c)           All
losses, expenses, liabilities and obligations incurred by Agent in connection
with the Building Loan, the enforcement thereof or the realization of the
security therefor and not paid for by a Borrower Entity shall be borne by the
Lenders in accordance with their ratable interest in the Building Loan, and
Lenders will, upon request, reimburse Agent for their ratable shares of any
expenses incurred by Agent in connection therewith, including any advances made
to pay Property Taxes or insurance or otherwise to preserve the lien of the
Building Loan Mortgage or to preserve and protect the Mortgaged Property, or
made to effect the completion of the Project to be constructed pursuant to this
Agreement and/or the achievement of Final Completion of the Project, any other expense
incurred in connection with the enforcement of the Security Documents, and any
expenses incurred by Agent in connection with the consummation of the Building
Loan not paid or provided by Borrower.

 

(d)           Promptly
after Agent acquires actual knowledge thereof, Agent will give notice to each
Lender of any Lien on the Mortgaged Property or material Default under this
Agreement or any of the other Building Loan Documents which in Agent’s judgment
materially adversely affects any Lender’s interest in the Building Loan.  Agent shall promptly advise Lenders from
time to time of any material remedial action which Agent shall have taken.

 

(e)           In
no event shall any or all Lenders have the right to remove Agent without cause
and in no event shall Agent resign as agent.

 

(f)            The
provisions of this Section 8.03 are for the sole benefit of Agent and
Lenders and therefore may be modified, amended or deleted as Agent and Lenders
shall mutually agree without the consent of any Borrower Entity.

 

SECTION 8.04       Agent’s
Reliance, Etc.  (a)  Agent shall administer this Agreement and
the other Building Loan Documents and service the Building Loan in accordance
with the terms and conditions of this Agreement and with the same degree of

 

121

 

care as Agent would use
in servicing a loan of similar size and type held for its own account,
provided, however, that none of its directors, officers, agents or employees
shall be liable for any action taken or omitted to be taken by it or them under
or in connection with the Building Loan Documents, except for its or their own
gross negligence or willful misconduct. 
Without limitation of the generality of the foregoing, Agent:  (i) may consult with legal counsel,
independent public accountants and other experts selected and shall not be liable
for any action taken or omitted to be taken in good faith by it in accordance
with the advice of such counsel, accountants or experts; (ii) makes no
warranty or representation to any Lender and shall not be responsible to any
Lender for any statements, warranties or representations (whether written or
oral) made in or in connection with the Building Loan Documents;
(iii) shall not have any duty to ascertain or to inquire as to the
performance or observance of any of the terms, covenants or conditions of this
Agreement or any other Building Loan Document on the part of any Borrower
Entity to inspect the Mortgaged Property (except that prior to Substantial
Completion, Agent shall (or shall direct Construction Consultant to)
periodically inspect the Mortgaged Property as necessary to comply with the
standard of care described in the first sentence of this Section 8.04) or
the books and records of any Borrower Entity; (iv) shall not be
responsible to any Lender for the due execution, legality, validity, enforceability,
genuineness, sufficiency or value of any Building Loan Document or any other
instrument or document furnished pursuant hereto; and (v) shall incur no
liability under or in respect of this Agreement or any other Building Loan
Document by acting upon any notice, consent, certificate or other instrument or
writing (which may be by telecopier, telegram, cable or telex) believed by it
to be genuine and signed or sent by the proper party or parties.

 

(b)           The
provisions of this Section 8.04 are for the sole benefit of Agent and
Lenders and therefore may be modified, amended or deleted as Agent and Lenders
shall mutually agree without the consent of any Borrower Entity.

 

SECTION 8.05       Payments
to Lenders.  Agent shall remit to
Lenders their ratable shares of any payment received from Borrower or from
another source on account of sums payable by Borrower.  The provisions of this Section are for
the sole benefit of Agent and Lenders and therefore may be modified, amended or
deleted as Agent and Lenders shall mutually agree without the consent of any
Borrower Entity.

 

SECTION 8.06       Construction
Consultant.  (a)  Borrower
acknowledges that (i) the Construction Consultant has been retained by
Agent to act as a consultant and only as a consultant to Agent in connection
with the construction of the Project and has no duty to any Borrower Entity,
(ii) the Construction Consultant shall in no event have any power or
authority to give any approval or consent or to do any other act or thing which
is binding upon Agent and/or Lenders, (iii) Agent reserves the right to
make any and all decisions required to be made by Agent under the Building Loan
Documents and to give or refrain from giving any and all consents or approvals
required to be given by Agent under the Building Loan Documents and to accept
or not accept any matter or thing required to be accepted by Agent under the
Building Loan Documents, and without being bound or limited in any manner or
under any circumstance whatsoever by any

 

122

 

opinion expressed or not
expressed, or advice given or not given, or information, certificate or report
provided or not provided, by the Construction Consultant with respect thereto,
and (iv) Agent reserves the right in its sole and absolute discretion to
disregard or disagree, in whole or in part, with any opinion expressed, advice
given or information, certificate or report furnished or provided by the
Construction Consultant to Agent or any other Person.

 

(b)           Neither
Agent nor the Construction Consultant shall have any liability to any Borrower
Entity on account of (i) the services performed by the Construction
Consultant, (ii) any neglect or failure on the part of the Construction
Consultant to properly perform its services or (iii) any approval by the
Construction Consultant of construction of the Project.  Neither Agent nor the Construction
Consultant assumes any obligation to any Borrower Entity or any other Person
concerning the quality of construction of the Project or the absence therefrom
of defects.

 

SECTION 8.07       Actions
of Agent Binding Upon Lenders.  Any
Borrower Entity shall be entitled to rely upon any notice from or action taken
by Agent, and no Borrower Entity shall be under any duty to inquire as to
whether such notice or action has been duly authorized by the Lenders.  Each Borrower Entity shall only be required
to deal with Agent.

 

SECTION 8.08       Initial Agent

 

(a)           Initial
Agent is acting as initial agent under this Agreement, the Building Loan
Mortgage and the Building Loan Assignment of Leases solely for the purpose of
making available to Borrower an exemption from mortgage recording tax so that
the Project may be financially feasible for Borrower.  In order to accomplish the foregoing, Initial Agent hereby agrees
to file this Agreement with the New York County Clerk’s Office and to submit
the Building Loan Mortgage and the Building Loan Assignment of Leases to the
Office of the City Register of New York County for recordation.  Upon such filing of this Agreement and such
submission for recording of the Building Loan Mortgage and the Building Loan
Assignment of Leases, effective immediately, automatically and without any
further action whatsoever, Initial Agent shall be deemed to have (i) resigned
as the initial agent (and the parties hereto consent to and accept such
resignation), and (ii) assigned unto Agent all of Initial Agent’s right,
title and interest as initial agent under this Agreement, the Building Loan
Mortgage and the Building Loan Assignment of Leases (and Agent shall be deemed
to have consented to and accepted such assignments).  The foregoing assignments are made without recourse,
representation or warranty by Initial Agent, in any case or event or for any
purpose whatsoever.  In confirmation of
(and simultaneously with) the foregoing assignments, Initial Agent and Agent
shall execute an assignment and assumption agreement evidencing such assignment
which shall be filed in the New York County Clerk’s Office immediately after
the filing of the Building Loan Agreement in such office and submitted for recording
in the Office of the City Register of New York County immediately after the
submission of the Building Loan Mortgage and the Building Loan Assignment of
Leases.

 

123

 

(b)           Except
as set forth in Section 8.08(a), Initial Agent has no beneficial interest in or
discretionary authority, and has no obligations, responsibilities or
liabilities, as initial agent under this Agreement, the Building Loan Mortgage,
the Building Loan Assignment of Leases and such Building Loan Notes.  Initial Agent has no beneficial interest in
or discretionary authority, and has no obligations, responsibilities or
liabilities, under any other Building Loan Document.

 

(c)           Borrower
acknowledges that Initial Agent is entering into this Agreement solely as an
accommodation to Borrower and that Initial Agent shall have absolutely no
obligations, responsibilities or liabilities under this Agreement or any other
Loan Document except to the extent set forth in Section 8.08(a).  The parties hereto acknowledge that the
Initial Agent is executing this Agreement solely to bind itself with respect to
this Section 8.08 and that Initial Agent’s execution does not amount to or
evidence Initial Agent’s agreement with or endorsement of any other provisions
of this Agreement.

 

(d)           Initial
Agent shall not be entitled to any compensation whatsoever for acting as
initial agent under this Agreement, the Building Loan Mortgage, the Building
Loan Assignment of Leases and such Building Loan Notes.

 

ARTICLE 9

 

EVENTS
OF DEFAULT

 

SECTION 9.01       Events
of Default.  The occurrence of any
one or more of the following conditions or events shall constitute an “Event of Default”
under this Agreement:

 

(a)           (i)            failure by Borrower to pay
(w) (subject to Agent’s obligations under Section 5.03(b) hereof) any
installment of interest under the Building Loan Notes within five (5) days of
when the same shall become due and payable, (x) the Indebtedness on the
Maturity Date, (y) Property Taxes (unless the same are being contested in
compliance with Section 7.05 hereof) within five (5) Business Days
after notice of failure to pay the same when due and payable is given by Agent
or (z) any amount required to be paid in connection with any prepayment
under Section 3.12 or 7.46 hereof within five (5) Business Days after
notice of failure to pay the same is given by Agent; (ii) failure by any
Borrower Entity to pay any other sums (including any portion of a Completion
Deposit) to be paid by it hereunder or under any other Building Loan Document
after written demand for payment has been given and such sum has not been paid
within the time period provided for in the applicable Building Loan Document
(or, if there is no such time period, the time period provided for in such
demand, which time period shall not be less than ten (10) Business Days);
or (iii) failure by Borrower or any Member to deposit within two
(2) business days after notice any amount required to be deposited under
the Collection Accounts Agreement or Security Deposit Accounts Agreement.

 

124

 

(b)           failure
by any Borrower Entity to duly keep, perform and observe (i) the covenants
contained in Sections 7.33, 7.52, 7.56 or 7.57 hereof within five (5)
Business Days from the date upon which Agent gives notice of such failure or
(ii) any covenant applicable to it under any Building Loan Document to
which it is a party (other than those covenants referred to in the other
clauses (including subclause (i) of this clause (b)) of this
Section 9.01), within thirty (30) days from the date upon which Agent
gives notice of such failure; provided that, in the case of clause (ii) of
this Section 9.01(b) only, in the event such failure is curable but is not
susceptible of cure within such thirty (30) day period it shall not be a
default hereunder in the event such Borrower Entity commences cure within such
thirty (30) day period and diligently prosecutes such cure to completion
within one hundred and twenty (120) days of the expiration of such thirty (30)
day period.  All determinations of
whether any failure is curable or is susceptible to cure within thirty (30)
days shall be made by Agent;

 

(c)           a
breach of or failure (i) by Borrower to duly keep, perform and observe the
covenants and obligations contained in Section 7.35(i), Section 7.35(ii),
Section 7.35(vii), Section 7.35 (viii) or in Section 7.30(a)(iii) or
(ii) by any Borrower Entity to duly keep, perform and observe any provision of
Section 7.32, provided that, with respect to any such breach or failure of
said Section 7.32 which (1) in the opinion of Agent, is unintentional,
(2) does not affect in any material respect the value of the Mortgaged
Property or the security intended to be granted to Agent, or (3) is not a
breach or failure relating to the transfer of the Land or Improvements or the
voluntary placement of a Lien on the Property, such breach or failure shall not
constitute an Event of Default unless and until it continues uncured for five
(5) Business Days after notice from Agent of such breach or failure;

 

(d)           (i)  if Borrower or any other party thereto
(other than Agent, any Lender, Ground Lessor, ESDC, the New York City Transit
Authority or the City of New York) shall be in default beyond any applicable
notice and cure period under any of the Condominium Documents (other than a
default by NYTC Member after its Unit has been released pursuant to
Section 7.46 hereof), or under any of the Public Project Agreements, or
(ii) if the Equity Contribution Documents, the Ground Lease, the Severance
Subleases or the Land Acquisition Agreement shall cease to be in full force or
effect or shall not be enforceable against any party thereto, other than Agent
(to the extent Agent is a party thereto);

 

(e)           if
any material inaccuracy shall exist in any of the financial statements and
supporting materials thereto (other than projections) delivered to Agent in
connection with the making of the Building Loan or delivered under this
Agreement or any other Building Loan Document or any certificate furnished by
or on behalf of any Borrower Entity to Agent pursuant to the provisions of any
Building Loan Document provided that in the case of the Guarantors, such
financial statements, supporting materials or certificates shall be limited to
those delivered at or prior to the Closing Date;

 

(f)            if
(x) at any time any representation or warranty (other than any
representation or warranty re-made pursuant to Section 4.02(c) hereof)
made by any Borrower Entity in any of the Building Loan Documents or in any
certificate furnished by

 

125

 

or on behalf of any Borrower Entity or any officer
thereof, shall be untrue or incorrect in any material respect when made, or
(y) at any time any representation or warranty re-made by Borrower or any
Member under Section 4.02(c) hereof shall be untrue or incorrect in any
material respect and such untruth or incorrectness has, or is reasonably likely
to have, a Material Adverse Effect;

 

(g)           (i)            if (A) a petition is filed
against Borrower or any Member, seeking a reorganization, arrangement,
composition, readjustment, liquidation, dissolution or similar relief under any
law relating to bankruptcy or insolvency, including, without limitation, the
Bankruptcy Code (each, a “Bankruptcy Law”) or any Person other than Borrower or
any Member shall apply for the appointment of any trustee, receiver, master,
liquidator, assignee, sequestrator (or other similar official) (any of the
foregoing, a “Bankruptcy Assignee”)
of Borrower or such Member or of all or any part of the Mortgaged Property or
of all of any part of the Rents (either, an “Involuntary Bankruptcy”) and (B) such
application or appointment is (y) not opposed or (z) is opposed, but
not discharged, stayed or dismissed prior to the earlier of (1) ninety
(90) days after the filing thereof and (2) the entry of an order for
relief in any such case or proceeding;

 

(ii)           if (A) a petition is filed by
Borrower or any Member seeking a reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief under any Bankruptcy
Law, (B) Borrower or any Member shall apply for the appointment of any
Bankruptcy Assignee of itself or of all or any part of the Mortgaged Property
or of all or any part of the rents, revenues, issues, earnings, profits or
income thereof, (C) Borrower or any Member acquiesces or colludes in any
Involuntary Bankruptcy, (D) Borrower or any Member makes any assignment
for the benefit of creditors, or (E) Borrower or any Member is or becomes
insolvent (each of the foregoing, a “Voluntary Bankruptcy”);

 

(h)           if
any Draw Request is fraudulently submitted by Borrower in connection with any
advance for services performed or for materials used in or furnished for the
Property or if any proceeds of the Building Loan are misappropriated by any
Borrower Entity;

 

(i)            if
Borrower confesses in writing its inability to continue or complete
construction of the Project in substantial accordance with the Plans and
Specifications and in accordance with the Public Project Agreements and this
Agreement;

 

(j)            failure
by Borrower to purchase and maintain any Interest Rate Cap, to the extent such
cap is required to be purchased by the terms of this Agreement, within five (5)
Business Days from the date upon which Agent gives notice of such failure.

 

(k)           If,
on a repeated basis, Agent, the Construction Consultant or their respective
representatives are not (subject to appropriate safety requirements) permitted
at all reasonable times and upon reasonable notice to enter upon the Property,

 

126

 

and inspect the Project and the construction thereof
and to examine and make copies of (at Borrower’s expense) the Plans and Specifications
(and provided Agent shall have notified Borrower each time it or the
Construction Consultant or their respective representatives have not been
permitted to so enter upon the Property and inspect the Project);

 

(l)            if
Borrower or any Member executes any conditional bill of sale, chattel mortgage
or other security instrument covering any furniture, furnishings, fixtures and
equipment intended to be incorporated and made a part of the Improvements, or
covering articles of personal property that are part of the Project, or files a
financing statement publishing notice of such security instrument, or purchases
any of such furniture, furnishings, fixtures and equipment so that ownership of
the same will not vest unconditionally in Borrower or a Member, free from
encumbrances, on delivery to the Premises and payment therefor; or if Borrower
does not produce to Agent, upon demand, the contracts, bills of sale,
statements, receipted vouchers or agreements, or any of them, under which
Borrower claims title to such materials, fixtures and articles and in either
such case such failure shall continue for ten (10) days after notice from Agent
with respect thereto;

 

(m)          if
Borrower does not disclose to Agent and Construction Consultant the names of
all persons with whom Borrower contracted for the construction of the Project
or for the furnishing of labor or materials therefor, or when so required by
Agent pursuant to the Building Loan Documents, fails to obtain the acceptance
by Agent of such persons and in either case such failure shall continue for ten
(10) Business Days after notice of such failure from Agent;

 

(n)           if
a lien for the performance of work or supply of materials is filed against the
Premises or any part thereof and is not paid and discharged, bonded or insured
over in accordance with Section 7.39 hereof, or if a judgment in excess of
$500,000.00 is filed against any Borrower or either Member or the Property and
remains unsatisfied or unbonded for a period of sixty (60) days after such
filing;

 

(o)           if
the Policies are not kept in full force and effect in accordance with the terms
and provisions of the Building Loan Mortgage or if the Payment and Performance
Bonds are not kept in full force and effect and in either case the same is not
cured within one (1) Business Day after any Borrower Entity has knowledge
of same;

 

(p)           if
any provision of Section 7.36 is breached and any such breach is not cured
within ten (10) Business Days after notice thereof from Agent; provided,
that, in addition to curing such breach, Borrower delivers to Agent within
twenty (20) Business Days a non-consolidation opinion in form and
substance and from counsel reasonably satisfactory to Agent, which opinion
takes into account such breach and cure;

 

(q)           if
any Borrower Entity shall fail to maintain its existence, except as otherwise
permitted in any Building Loan Document;

 

127

 

(r)            if
Borrower is in default (beyond any notice or grace period expressly provided
therein) under the Guaranteed Maximum Price Contract or if the third party to
any Material Contract (other than the Material Contracts listed in clauses (c),
(d) and, from and after the date on which the Plans and Specifications (other
than any Change Orders) are in final form, (e) of the definition thereof) is in
default thereunder and, in either case, such default, if not cured within any
applicable notice and/or cure periods, could reasonably be expected to result
in a Material Adverse Effect;

 

(s)           if
Borrower fails to cause the Title Insurance Companies to comply with their
obligations under the Title Company Side Letter within five (5) Business Days
from the date on which Agent gives notice to Borrower of such non-compliance;
or

 

(t)            if
an Event of Default under and as defined in the Project Loan Agreement shall
have occurred and be continuing.

 

ARTICLE 10

 

RIGHTS AND REMEDIES OF LENDERS

 

SECTION 10.01     Remedies.  Upon the occurrence and during the
continuance of any Event of Default (or, to the extent provided in
Section 10.01(f), a Default), Agent may, at any time thereafter, at its
option, exercise any or all of the following rights and remedies:

 

(a)           Declare
Lenders’ obligations to make Advances hereunder to be terminated, whereupon the
same shall terminate, and/or declare all Indebtedness (including the Exit Fee
(as defined in the Side Letter re: 
Fees)) to be immediately due and payable, whereupon same shall become
and be immediately due and payable, anything in the Building Loan Documents to
the contrary notwithstanding, and without presentation, protest or further demand
or notice of any kind (all of which are expressly hereby waived by Borrower);
provided, however, that Lenders may make Advances or parts of Advances
thereafter without thereby waiving the right to demand payment of the Building
Loan Notes, without becoming liable to make any other or further Advances, and
without affecting the validity of or enforceability of the Building Loan
Documents; provided further, however, with respect to an Event of Default
described in Section 9.01(g) hereof, all Indebtedness (including the Exit
Fee) shall immediately and automatically become due and payable, without notice
or demand, anything contained herein or in any other Building Loan Document to
the contrary notwithstanding), and Agent may enforce or avail itself of any or
all rights or remedies provided in the Building Loan Documents against any
Borrower Entity and/or the Mortgaged Property, including all rights or remedies
available at law or in equity.

 

(b)           Agent
may cause the Project to be constructed and developed until achievement of
Final Completion and Stabilized Occupancy and may enter upon the Premises and
construct, equip and complete the Project substantially in accordance with the
Plans and Specifications (with such changes or modifications thereto

 

128

 

that Agent may, in its sole discretion, deem necessary
or advisable).  In connection with any
construction of the Project undertaken by Agent pursuant to the provisions of
this subsection, Agent may:

 

(1)           use any funds of any Borrower Entity
pledged to Agent under or pursuant to any Loan Document, and any funds
remaining unadvanced under the Building Loan and/or the Project Loan;

 

(2)           employ existing contractors and
subcontractors, including the General Contractor, any other Major Contractors,
any Major Subcontractors, and the like, or terminate the same and employ
others;

 

(3)           employ security personnel to protect
the Property;

 

(4)           take over and use any and all
Personal Property contracted for or purchased by Borrower or the Members, or
dispose of the same as Agent sees fit;

 

(5)           execute all applications and
certificates on behalf of Borrower or the Members which may be required by any
Governmental Authority or Legal Requirements or contracts or agreements;

 

(6)           pay, settle or compromise all
existing or future bills and claims which are or may be liens against the
Mortgaged Property, or may be necessary for the completion of the Project or
the clearance of title to the Mortgaged Property, including, without
limitation, all Property Taxes;

 

(7)           complete the marketing and leasing of
leasable space in the Improvements, enter into new leases and occupancy or
operating agreements of the Units or portions thereof, and modify or amend
existing leases and occupancy or operating agreements, all as Agent shall deem
to be necessary or desirable;

 

(8)           prosecute and defend all actions and
proceedings in connection with the construction of the Project or in any other
way affecting the Mortgaged Property and take such action and require such
performance as Agent deems necessary under the GMP Guaranty or the Payment and
Performance Bonds; and

 

(9)           take such other action hereunder, or
refrain from acting hereunder, as Agent may, in its sole and absolute
discretion, from time to time determine, and without any limitation whatsoever,
to carry out the intent of this Section 10.01(b).  Borrower shall be liable to Agent for all
costs paid or incurred for the construction, completion and

 

129

 

equipping of the Project, whether the same shall be
paid or incurred pursuant to the provisions of this Section or otherwise,
and all payments made or liabilities incurred by Agent hereunder of any kind
whatsoever shall be deemed Advances made to Borrower under this Agreement and
shall be secured by the Security Documents. 
Any sums so expended by Agent shall be paid by Borrower to Agent on
demand, with interest thereon at the Default Rate until paid; and Borrower
shall execute such notes or amendments to the Building Loan Notes as may be
requested by Agent to evidence Borrower’s obligation to pay such excess costs
and until such notes or amendments are so executed by Borrower, Borrower’s
obligation to pay such excess costs shall be deemed to be evidenced by this
Agreement.  In the event Agent takes
possession of the Premises and assumes control of such construction as
aforesaid, Agent shall not be obligated to continue such construction longer
than Agent shall see fit and may thereafter, at any time, change any course of
action undertaken by it or abandon such construction and decline to make further
payments for the account of Borrower and the Members whether or not the Project
shall have been completed.  For the
purpose of this Section, the construction, equipping and completion of the
Project shall be deemed to include any action necessary to cure any Event of
Default under any of the terms and provisions of any of the Building Loan
Documents.

 

(c)           Appoint
or seek appointment of a receiver, without notice and without regard to the
solvency of Borrower or the adequacy of the security, for the purpose of
preserving the Mortgaged Property, preventing waste, and to protect all rights
accruing to Lenders by virtue of this Agreement and the other Building Loan
Documents, and expressly to do any further acts as Agent may determine to be
necessary to complete the development and construction of the Project
(including achieving Final Completion and Stabilized Occupancy).  All expenses incurred in connection with the
appointment of such receiver, or in protecting, preserving, or improving the
Mortgaged Property, shall be charged against Borrower with interest thereon
from the date of such expenditure to the date repaid at the Default Rate and
shall be secured by the Building Loan Mortgage and enforceable as a lien
against the Mortgaged Property.

 

(d)           Accelerate
maturity of the Building Loan Notes and any other indebtedness of Borrower to
Lenders, and demand payment of the principal sum due thereunder, with interest,
advances, costs and reasonable attorneys’ fees and disbursements (including
those for appellate proceedings), and enforce collection of such payment by
foreclosure of the Building Loan Mortgage or the enforcement of any guaranty or
the collection of any other collateral, or other appropriate action.

 

(e)           Notwithstanding
any other provision of this Agreement or any other Loan Document, and to the
extent permitted by applicable law, at any time and from time to time, without
notice (any such notice being expressly waived), and without regard to the
adequacy of any collateral, set-off and apply (x) any and all deposits and
other amounts (general or specific, time or demand, provisional or final,
regardless of currency, maturity, or the branch where the deposits are held) at
any time held by Agent,

 

130

 

Borrower’s Bank or any other escrow bank pursuant to
the provisions hereof and of all other Loan Documents and (y) all other
sums credited by or due from Agent or any Lender to the extent permitted by
Section 3.15(b) hereof.

 

(f)            If
an Event of Default (or a Default, if such Default is that an insurance policy
required to be maintained under the Building Loan Documents is no longer in
effect) shall have occurred and be continuing, Agent shall have the right, but
not the duty, without limitation upon any of Agent’s rights pursuant hereto, to
perform the obligations of or cure any breaches by any Borrower Entity which
are the subject of the Event of Default (or the Default), in which event
Borrower agrees to pay to Agent, within five (5) Business Days after demand
therefor, all actual costs and expenses incurred by Agent in connection
therewith, including without limitation reasonable attorneys’ fees and
disbursements, together with interest from the date of expenditure at the
Default Rate.  Upon demand by Agent,
each of the Lenders shall promptly advance to Agent in immediately available
funds its ratable portion of the funds expended by Agent in curing such Event
of Default (or Default), together with interest thereon at the Default Rate
from the date of Agent’s payment through the date prior to the date on which
such advance is received by Agent.

 

(g)           Agent
may terminate or rescind any proceeding or other action brought in connection
with its exercise of the remedies provided in this Section at any time
before the conclusion thereof, as determined in Agent’s sole discretion and
without prejudice to Lenders.

 

SECTION 10.02     Power
of Attorney.  During the continuance
of an Event of Default (or effective at any time with respect to the right of
Agent to execute and file any Uniform Commercial Code financing statements
reasonably necessary or advisable to accomplish the purposes of any Building
Loan Document), Borrower hereby irrevocably constitutes and appoints (and
hereby causes the Members to hereby irrevocably constitute and appoint) Agent
its (or their) true and lawful attorney-in-fact, with full power of
substitution, to execute, acknowledge and deliver any instruments and do and
perform any acts which are referred to in this Agreement or in the Ground Lease
or any Severance Sublease (including, without limitation, those referred to in
Section 10.01(b) hereof), in the name and on behalf of Borrower (and/or
the Members).  The power vested in such
attorney-in-fact is, and shall be deemed to be, coupled with an interest and
irrevocable.

 

SECTION 10.03     Remedies
Cumulative.  During the continuance
of any Event of Default, the rights, powers and privileges provided in this
Article 10 and all other remedies available to Agent under this Agreement
or under any of the other Building Loan Documents or at law or in equity may be
exercised by Agent at any time and from time to time and shall not constitute a
waiver of Agent’s other rights or remedies thereunder, whether or not the
Building Loan shall be due and payable, and whether or not Agent shall have
instituted any foreclosure proceedings or other action for the enforcement of
its rights under the Building Loan Documents. 
The exercise or beginning of the exercise by Agent of any one or more of
the rights, powers or remedies provided for in this Agreement or the other Building
Loan Documents or now or

 

131

 

hereafter existing at law
or in equity or by statute or otherwise shall not preclude the simultaneous or
later exercise by Agent of all such other rights, powers or remedies, and no
failure or delay on the part of Agent to exercise any such right, power or
remedy shall operate as a waiver thereof. 
Agent may, at its option, exercise any right or remedy with respect to
less than all of the collateral pledged by the Security Documents, leaving
unexercised its rights with respect to the remainder thereof, and such partial
exercise shall in no way restrict or jeopardize Agent’s right to exercise
rights with respect to all or another portion of the collateral at a later time
or times.

 

SECTION 10.04     Annulment
of Defaults.  An Event of Default
shall not be deemed to be in existence for any purpose of this Agreement or any
other Building Loan Document if Agent shall have waived such Event of Default
in writing or stated that the same has been cured to its satisfaction, but no
such waiver shall extend to or affect any subsequent Event of Default or impair
any of the rights of Agent or Lenders upon the occurrence thereof.

 

SECTION 10.05     Waivers.  Borrower hereby waives (and shall cause each
other Borrower Entity to waive) to the extent not prohibited by applicable law
(a) all presentments, demands for payment or performance, notices of
nonperformance (except to the extent required by the provisions hereof or of
any other Building Loan Documents), protests and notices of dishonor,
(b) any requirement of diligence or promptness on Agent’s part in the
enforcement of its rights under the provisions of this Agreement or any other
Building Loan Document, (c) any and all notices of every kind and
description which may be required to be given by any statute or rule of law and
(d) all rights to have any security marshaled upon the exercise of any
remedies hereunder or under any other Building Loan Document.

 

SECTION 10.06     Course
of Dealing, Etc.  No course of
dealing and no delay or omission by Agent in exercising any right or remedy
hereunder shall operate as a waiver thereof or of any other right or remedy and
no single or partial exercise thereof shall preclude any other or further
exercise thereof or the exercise of any other right or remedy.  A waiver on any one occasion shall not be
construed as a bar to or waiver of any right or remedy on any future
occasion.  No waiver or consent shall be
binding upon Agent unless it is in writing and signed by Agent.  Agent’s exercise of any right to remedy any
default shall not constitute a waiver of the default remedied, a waiver of any
other prior or subsequent default or a waiver of the right to be reimbursed for
any and all of its expenses in so remedying such default.  No Advance of Building Loan proceeds
hereunder, no increase or decrease in the amount of any Advance, and no making
of all or any part of an Advance prior to the due date thereof shall constitute
an approval or acceptance by Agent or Lenders of the work theretofore done or a
waiver of any of the conditions of Lenders’ obligation to make further
Advances, nor in the event Borrower is unable to satisfy any such condition,
shall any such failure to insist upon strict compliance have the effect of
precluding Lenders from thereafter refusing to make an Advance and/or declaring
such inability to be an Event of Default as hereinabove provided.  Any Advances hereunder during the existence
of a Default or an Event of Default shall not constitute a waiver thereof.  All Advances shall be deemed to have been

 

132

 

made pursuant hereto and
not in contravention of the terms of this Agreement.  All rights and remedies of Agent hereunder are cumulative.

 

SECTION 10.07     Bankruptcy.

 

(a)           In
the event of any Event of Default under Section 9.01(g), if Borrower or a
Member seeks to reject the Ground Lease or a Severance Sublease pursuant to
Section 365(a) of the Bankruptcy Code or any analogous provision of any other
Bankruptcy Law, Borrower or such Member shall give Agent not less than thirty
(30) days’ prior notice of the date on which Borrower or such Member shall
apply to the applicable Governmental Authority for authority to reject the
Ground Lease or such Severance Sublease. 
Agent shall have the right, but not the obligation, to serve upon
Borrower or such Member within such thirty (30) day period a notice stating
that Agent demands that Borrower or such Member assume and assign the Ground
Lease or such Severance Sublease to Agent pursuant to Section 365 of the
Bankruptcy Code.  If Agent shall serve
upon Borrower or such Member the notice described in the preceding sentence,
Borrower or such Member shall not seek to reject the Ground Lease or such
Severance Sublease and shall comply with the demand provided for in the
preceding sentence within thirty (30) days after the notice shall have been
given or such shorter time as may be necessary to assume such Ground Lease or
Severance Sublease in such proceeding.

 

(b)           Borrower
shall not (and shall not permit any Member to), without Agent’s prior written
consent, elect to treat the Ground Lease or a Severance Sublease as terminated
under subsection 365(h)(1)(A)(i) of the Bankruptcy Code or any analogous
provision of any other Bankruptcy Law. 
Any such election made without Agent’s consent shall be void.

 

(c)           If
pursuant to subsection 365(h)(1)(B) of the Bankruptcy Code or any analogous
provision of any other Bankruptcy Law, Borrower or a Member shall seek to
offset against the rent reserved in the Ground Lease or a Severance Sublease
the amount of any damages caused by the nonperformance by the Ground Lessor or
any other fee owner of its or their obligations under the Ground Lease or by
the sublessor of its obligations under a Severance Sublease after the rejection
by Ground Lessor or such sublessor under the Bankruptcy Code or such other
applicable Bankruptcy Law, Borrower or such Member shall, prior to effecting
such offset, notify Agent of its intent to do so, setting forth the amounts
proposed to be so offset and the basis therefor.  Agent shall have the right to object to all or any part of such
offset that, in the reasonable judgment of Agent, would constitute a breach of
the Ground Lease or such Severance Sublease, and in the event of such
objection, Borrower or such Member shall not effect any offset of the amounts
so objected to by Agent.  Neither
Agent’s failure to object as aforesaid nor any objection relating to such
offset shall constitute an approval of any such offset by Agent.

 

133

 

ARTICLE 11

 

GENERAL CONDITIONS

 

SECTION 11.01     Rights
of Third Parties.  (a)  All conditions of the obligations of Agent
and Lenders hereunder, including the conditions precedent to the obligation to
make Advances, are imposed solely and exclusively for the benefit of Agent and
Lenders and no other Person (including, without limitation, the Construction
Consultant, General Contractor, any other Major Contractor, any Major
Subcontractor, or any other contractors, subcontractors and materialmen engaged
in the construction of the Project) shall have standing to require satisfaction
of such conditions in accordance with their terms or be entitled to assume that
Lenders will make Advances in the absence of strict compliance with any or all
thereof and no other Person shall, under any circumstances, be deemed to be a
beneficiary of such conditions, any and all of which may be freely waived in
whole or in part by Agent or any Lender any time if in its sole discretion it
deems it desirable to do so.  In
particular, Agent and Lenders make no representations and assume no obligations
as to third parties concerning the quality of the construction by Borrower of
the Project or the absence therefrom of defects.

 

(b)           ALL
POTENTIAL LIENORS ARE HEREBY CAUTIONED TO EXERCISE SOUND BUSINESS JUDGMENT IN
THE EXTENSION OF CREDIT TO ANY BORROWER ENTITY.  NO POTENTIAL LIENOR SHOULD EXPECT LENDERS OR AGENT TO MAKE
ADVANCES OF THE BUILDING LOAN IN AMOUNTS AND AT TIMES SUCH THAT IT WILL NOT BE
NECESSARY FOR EACH SUCH POTENTIAL LIENOR TO EXERCISE SOUND BUSINESS JUDGMENT IN
THE EXTENSION OF CREDIT TO BORROWER. 
MOREOVER, ALL POTENTIAL LIENORS ARE REMINDED THAT SUBDIVISION
(3) OF SECTION 13 OF THE NEW YORK LIEN LAW PROVIDES THAT “NOTHING IN
THIS SUBDIVISION SHALL BE CONSIDERED AS IMPOSING UPON THE LENDERS ANY
OBLIGATION TO SEE TO THE PROPER APPLICATION OF SUCH ADVANCES BY THE OWNER,” AND
LENDERS AND AGENT DO NOT IMPOSE SUCH AN OBLIGATION ON THEMSELVES.

 

SECTION 11.02     Relationship.  The relationship between Agent and Lenders
on the one hand, and Borrower Entities, on the other hand, is solely that of a
lender and borrower, and nothing contained herein or in any of the other
Building Loan Documents or the NYTC Completion Guaranty shall in any manner be
construed as making the parties hereto partners, joint venturers or any other
relationship other than lender and borrower. 
In addition, neither Agent nor any Lender is the agent or representative
of any Borrower Entity and neither this Agreement, any other Building Loan
Document or the NYTC Completion Guaranty shall make Agent or any Lender liable
to materialmen, contractors, craftsmen, laborers or others for goods delivered
to or services performed by them upon the Mortgaged Property, or for debts or
claims accruing to such parties against any Borrower Entity and there is no
contractual relationship, either express or implied, between Agent or any
Lender and any materialmen, subcontractors,

 

134

 

craftsmen, laborers, or
any other person supplying any work, labor or materials to the Mortgaged
Property.

 

SECTION 11.03     Evidence
of Satisfaction of Conditions; Approval Standard.  If any condition of this Agreement requires the submission of
evidence of the existence or non-existence of a specified fact or facts or
implies as a condition the existence or non-existence, as the case may be, of
such fact or facts, Agent shall, at all times, be free independently to
establish to its satisfaction and in its absolute discretion such existence or
non-existence, except where Agent expressly agrees hereunder to be
reasonable.  In any circumstance where
any Building Loan Document or the NYTC Completion Guaranty specifies that the
approval or consent of Agent, Construction Consultant or any Indemnified Party
must be given, or that any matter or circumstance must be satisfactory or
acceptable to, or determined by, Agent, Construction Consultant or any
Indemnified Party, then unless expressly set forth to the contrary, such
approval or consent or such determination of satisfaction or acceptability or
other determination, shall be within the sole and absolute discretion of Agent,
Construction Consultant or such Indemnified Party.

 

SECTION 11.04     Notices.  (a) 
Any request, notice, report, demand, approval or other communication
permitted or required by this Agreement to be given or furnished shall be in
writing and shall be deemed given or furnished when addressed to the party
intended to receive the same, at the address of such party as set forth below,
(i) when delivered by overnight nationwide commercial courier service, one
(1) Business Day (determined with reference to the location of the
recipient) after the date of delivery to such courier service, (ii) when
personally delivered, if delivered on a Business Day in the place of receipt
and during normal business hours (otherwise on the next occurring Business Day
in such place of receipt) or (iii) when transmitted by telecopy to the
telecopier number set forth below, to the party intended to receive same, if
transmitted on a Business Day in the place of receipt and during normal
business hours (and otherwise on the next occurring Business Day in such place
of receipt) and provided that such transmission is confirmed by duplicate
notice in such other manner as permitted above:

 

Lenders or Agent:

 

GMAC Commercial Mortgage Corporation

100 South Wacker Drive, Suite 400

Chicago, Illinois  60606

Attention:   Vacys R. Garbonkus

Telecopier: (312) 917-6131

 

with a copy to:

 

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, New York  10019

Attention:   Harris B. Freidus, Esq.

Telecopier: (212) 492-0064

 

135

 

and (but only if such notice relates to a default by
Agent)

 

GMAC Commercial Mortgage Corporation

200 Witmer Road

Horsham, Pennsylvania  19044

Attention:   General Counsel

Telecopier: (215) 328-3620

 

Borrower:

 

The New York Times Building LLC

c/o FC Lion LLC

One MetroTech Center North

Brooklyn, New York 11201

Attention:   General Counsel

Telecopier: (718) 923-8705

 

with a copy to:

 

Kelley, Drye & Warren LLP

101 Park Avenue

New York, New York 10178

Attention:   James J. Kirk, Esq.

Telecopier: (212) 808-7897

 

and

 

The New York Times Company

229 West 43rd Street

New York, New York 10036

Attention:   Anthony Benten

David Thurm

and Kenneth A. Richieri,
Esq.

Telecopier   (212) 556-1646 (Mr.
Benten) and

(212) 556-4634 (Mr. Thurm
and Mr. Richieri)

 

and

 

INGREDUS Site 8 South LLC

c/o Clarion Partners

335 Madison Avenue

New York, New York  10017

Attention:  Charles Grossman

Telecopier:  (212) 883-2700

 

and

 

136

 

INGREDUS Site 8 South LLC

c/o Clarion Partners

601 13th Street, NW, Suite 450

Washington, D.C.  20005

Attention:  Martin Sandiford

Telecopier:  (917) 777-2600

 

(b)           Any party may change the entity,
address or the attention party to which any such request, notice, report,
demand or other communication is to be given by furnishing notice of such
change to the other parties in the manner specified above.  Without the prior consent of Agent, Borrower
may not add any other parties to these notice provisions.  Rejection or refusal to accept, or inability
to deliver because of changed address when no notice of changed address was
given, shall be deemed to be receipt of any such notice.  As between Agent and any Borrower Entities
only, a notice given by a party under any Building Loan Document of a change of
entity, address or attention party shall be deemed to be a notice of such
change to Agent or any such party, as applicable, for purposes of all Building
Loan Documents to which such party is a party.

 

(c)           Unless notified to the contrary
pursuant to this Section 11.04(c), any notice or communication to be made
to any Lender shall be made only to Agent and its counsel as provided for in
this Section.

 

SECTION 11.05     Assignment.  (a) Subject to Section 7.50 hereof,
Borrower may not assign this Agreement, any other Loan Document or any of its
rights or obligations hereunder or thereunder without the prior approval of
Agent.  Subject to the further
provisions of this Section 11.05, Borrower acknowledges and agrees that
GMACCM and any other Lender may assign, transfer, sell, pledge or grant
participation interests in or otherwise hypothecate its rights in, to and under
the Loans, the Loan Documents and the NYTC Completion Guaranty, or any portion
thereof (any such transaction, an “Assignment”) (i) without Borrower’s consent, to any
Eligible Assignee, (ii) subject to clause (iii) of this sentence,
with the prior consent of Borrower to any other Person, which consent may not
be unreasonably withheld or (iii) without Borrower’s consent, to those
entities approved by Borrower in the Disclosure Side Letter.  Upon any such Assignment by GMACCM or any
Lender (excluding any such pledge or other hypothecation or any such granting
of a participation interest), GMACCM or such Lender shall be relieved of any
liability hereunder and under any Loan Document, but only to the extent such liability
is assumed by the assignee. 
Notwithstanding anything to the contrary in the foregoing, (1) no
consent of Borrower shall be required for any Assignment by GMACCM during the
continuance of an Event of Default and no consent of Borrower, GMACCM or Agent
shall be required for any Assignment by any other Lender during the continuance
of an Event of Default, (2) Agent agrees that prior to the occurrence
of an Event of Default, GMACCM and its Affiliates shall collectively retain at
least $50,000,000.00 of the Loans (including undrawn portions thereof) in the
aggregate (or, in the event that there has been any prepayment of any principal
amount owing under the Loans, GMACCM and its Affiliates shall collectively
retain such portion of the Loans (including undrawn portions thereof) as shall,
in the aggregate, bear the

 

137

 

same proportion as
$50,000,000.00 shall bear to $320,000,000.00), (3) each Lender shall have
the right, without the consent of Borrower, Agent or any Lender, to grant
participation interests in the Loans to any Person (and any such participations
shall not count toward or be violative of clause (2) of this
Section 11.05(a)), (4) without Agent’s consent, which may be withheld
in Agent’s sole discretion, no Lender shall have the right to consummate an
Assignment (other than a participation) with respect to a portion of the Loans
not equal to any whole number multiple of $10,000,000, and (5) subject to the
foregoing clauses (1), (3) and (4), each Lender’s right to consummate an
Assignment shall be subject to Agent’s prior reasonable consent.  Clause (2) of the immediately preceding
sentence shall not be construed so as to prohibit GMACCM from entering into any
so-called “off-balance sheet” or “repurchase” facility arrangement wherein
GMACCM shall retain effective control over any portion of the Loans which is
subject to such arrangement and shall be responsible for the funding of that
portion of the Building Loan.  The
parties to any Assignment (other than any grantee of a participation interest or
any grantee of a pledge or other hypothecation (but not any Person who has
foreclosed upon such pledge or hypothecation)) by a Lender shall execute and
deliver to Agent, for its acceptance and recording in the Agent’s Register,
Agent’s form of assignment and acceptance agreement (the “Assignment and Acceptance Agreement”)
together with a processing and recordation fee of $2,500, which fee shall cover
Agent’s administrative cost in connection with such assignment.  The parties to such Assignment shall also
pay all of Agent’s reasonable attorneys’ fees and disbursements in connection
with such Assignment except, with respect to Agent’s reasonable attorneys’ fees
and disbursements, to the extent paid by Borrower pursuant to
Section 7.06(a)(ii) hereof. 
Each Borrower Entity shall promptly execute and file any amendments to
any Building Loan Document or the NYTC Completion Guaranty necessary or
desirable to reflect any such Assignment (including, without limitation,
multiple notes reflecting such assignee’s interest in the Building Loan)
provided the same do not increase any such Borrower Entity’s liabilities (other
than to a de minimis extent) or decrease any such Borrower Entity’s rights
(other than to a de minimis extent) with respect to the Building
Loan.  Upon such execution, delivery,
acceptance and recording, from and after the effective date specified in such
Assignment and Acceptance Agreement, (x) such assignee shall be a Lender
and (y) the assignor thereunder shall, to the extent that rights and
obligations hereunder have been assigned by it, or assumed by the assignee
thereunder, pursuant to such Assignment and Acceptance Agreement, relinquish
its rights and be released from its obligations under this Agreement and the
other Building Loan Documents (and, in the case of an Assignment and Acceptance
Agreement covering all or the remaining portion of an assignor’s rights and
obligations under this Agreement, such assignor shall cease to be a
Lender).  The Agent shall maintain a
register (the “Agent’s Register”)
showing the identity of the Lenders from time to time, and upon request from
Borrower from time to time, shall supply Borrower with a copy of the Agent’s
Register.  Agent acknowledges and
confirms that as of the date hereof, GMACCM is the only Lender.  Supplementing the foregoing, no entity whose
only interest in the Loans is a participation interest or a pledge or other
hypothecation (except to the extent such entity has foreclosed on such pledge
or other hypothecation) shall be considered, for any purpose hereunder, a
Lender.

 

138

 

(b)           Subject
to Section 11.23 hereof, Borrower acknowledges and agrees that Agent or
any Lender may provide to any potential assignee or participant originals or
copies of this Agreement, any other Building Loan Documents and any other
documents, instruments, certificates, opinions, insurance policies, letters of
credit, reports, requisitions and other materials and information at any time
submitted by or on behalf of any Borrower Entity or received by Agent and/or
Lenders in connection with the Building Loan. 
Agent and each Lender agree that as a condition to such disclosure to
any such assignee or participant, Agent or such Lender shall use reasonable
efforts to cause such assignee or participant to agree to keep such information
confidential in a manner substantially similar to Section 11.23
hereof.  In addition, Borrower agrees to
cooperate in all reasonable respects with Agent and/or Lenders in the exercise
of their respective rights pursuant to this Section 11.05, including,
without limitation, providing such information and documentation regarding
Borrower Entities, or any other Person and their businesses and finances as
Agent and/or Lenders or any potential assignee or participant may reasonably
request and meeting with potential assignees and participants upon reasonable
notice.

 

SECTION 11.06     Successors
and Assigns Included in Parties. 
Whenever in this Agreement one of the parties hereto is named or
referred to, the heirs, legal representatives, successors and assigns of such
party shall be included (including, without limitation, any Member succeeding
Borrower to title to any Unit pursuant to Section 7.50 hereof) and all
covenants and agreements contained in this Agreement by or on behalf of
Borrower or by or on behalf of Agent or any Lender shall bind and inure to the
benefit of their respective heirs, legal representatives, successors and
assigns (including such Members), whether so expressed or not.  Notwithstanding the foregoing, to the extent
any Member is released from liability under the Building Loan Documents
pursuant to Section 7.46 hereof, the heirs, legal representatives,
successors and assigns of such Member shall also be deemed to have been
released to such extent.

 

SECTION 11.07     Headings.  The headings of the Articles,
Sections and subsections of this Agreement are for the convenience of
reference only, are not to be considered a part hereof and shall not limit or
otherwise affect any of the terms hereof. 
All references in this Agreement to Sections, subsections and other
divisions are references to the Sections, subsections and divisions of this
Agreement unless otherwise stated.

 

SECTION 11.08     Invalid
Provisions to Affect No Others.  If
fulfillment of any provision hereof or any transaction related hereto at the
time performance of such provisions shall be due, shall involve transcending
the limit of validity presently prescribed by law, with regard to obligations
of like character and amount, then, ipso facto, the obligation to be fulfilled
shall be reduced to the limit of such validity; and if any clause or provision
herein contained operates or would prospectively operate to invalidate this
Agreement in whole or in part, then such clause or provision only shall be held
for naught, as though not herein contained, and the remainder of this Agreement
shall remain operative and in full force and effect.

 

139

 

SECTION 11.09     Interpretation.  Whenever the singular or plural number, or
the masculine, feminine or neuter gender is used herein, it shall equally
include the other.  The words “hereof,”
“herein” and “hereunder” and words of similar import when used in this
Agreement shall refer to this Agreement as a whole and not to any particular
provision of this Agreement.

 

SECTION 11.10     Computation
of Time Periods.  In this Agreement,
with respect to the computation of periods of time from a specified date to a
later specified date, the word “from” means both “from and including” and the
words “to” and “until” both mean “to but excluding.”

 

SECTION 11.11     Governing
Law.  This Agreement shall be
governed by and construed in accordance with the laws of the State of
New York applicable to contracts made and performed solely within such
State.

 

SECTION 11.12     Consent
to Jurisdiction.  Borrower hereby
irrevocably and unconditionally (a) agrees that any suit, action or other
legal proceeding arising out of or relating to the Building Loan Documents may
be brought in the courts of record of the State of New York in
New York County or the courts of the United States, Southern District of
New York; (b) consents to, and waives any and all personal rights
under the laws of any state to object to, the jurisdiction of each such court
in any such suit, action or proceeding; and (c) waives any objection which
it may have to the laying of venue of any such suit, action or proceeding in
any of such courts.  In furtherance of
such agreement, Borrower agrees, upon request of Agent, to discontinue (or
consent to the discontinuance of) any such suit, action or proceeding pending
in any other jurisdiction or court. 
Nothing contained herein, however, shall prevent Agent from bringing any
suit, action or proceeding or exercising any rights against any security and
against Borrower, and against any property of Borrower, in any other state or
court.  Initiating such suit, action or
proceeding or taking such action in any state shall in no event constitute a
waiver of the agreement contained herein that the laws of the State of
New York shall govern the rights and obligations of Borrower and any
Lender and Agent hereunder or the submission herein by Borrower to personal
jurisdiction within the State of New York.  Borrower irrevocably consents to the service of any and all
process in any such suit, action or proceeding by service of copies of such
process to Borrower at its address provided herein.  Nothing in this Section 11.12, however, shall affect the
right of Agent to serve legal process in any other manner permitted by law.  TO THE FULL EXTENT PERMITTED BY LAW,
BORROWER HEREBY KNOWINGLY, INTENTIONALLY AND VOLUNTARILY, WITH AND UPON THE
ADVICE OF COMPETENT COUNSEL, WAIVES, RELINQUISHES AND FOREVER FORGOES THE RIGHT
TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING OUT OF, OR
IN ANY WAY RELATING TO THIS AGREEMENT OR ANY CONDUCT, ACT OR OMISSION OF
BORROWER, OR ANY OF ITS DIRECTORS, OFFICERS, PARTNERS, PRINCIPALS, MEMBERS,
EMPLOYEES OR ANY OTHER AFFILIATES, IN EACH OF THE FOREGOING CASES, WHETHER
SOUNDING IN CONTRACT, TORT OR OTHERWISE. 
The waivers in this Section are given knowingly and voluntarily by
Borrower and, with respect to the waiver of jury trial, is

 

140

 

intended to encompass
individually each instance and each issue as to which the right to a trial by
jury would otherwise accrue.  Agent is
hereby authorized to file a copy of this Section in any proceeding as
conclusive evidence of these waivers by Borrower.

 

SECTION 11.13     Amendments.  Except as provided in Article 8 and
Section 11.05 hereof, neither this Agreement nor any provision hereof may
be changed, waived, discharged or terminated orally, but only by instrument in
writing signed by the party against whom enforcement of the change, waiver,
discharge or termination is sought.

 

SECTION 11.14     Counterparts.  This Agreement may be executed in any number
of counterparts, each of which, when executed and delivered, shall be an
original, but such counterparts shall together constitute one and the same
instrument.

 

SECTION 11.15     Entire
Agreement.  This Agreement and the
other Building Loan Documents embody the entire agreement and understanding
between the parties with respect to the Building Loan and supersede all other
prior agreements and understandings, whether oral or written, relating to the
subject matter hereof and thereof, except as specifically agreed to the
contrary.

 

SECTION 11.16     Recourse.  Agent and Lenders shall have full recourse
against Borrower for any liability or obligation of Borrower under this
Agreement and the other Building Loan Documents.  Neither Lenders nor Agent nor any of them shall have any recourse
against, or the right to enforce the liability and obligation of, the other
Borrower Entities to perform and observe the obligations contained in this
Agreement or any other Building Loan Documents by any action or proceeding
brought against any such other Borrower Entity other than (1) as expressly
provided in the Guaranties, or any other agreement hereafter executed and
delivered to Agent by such other Borrower Entity in connection with the
Building Loan or (2) against the collateral granted under the Security
Documents or any other Building Loan Document. 
The provisions of this Section 11.16 shall not (i) constitute
a waiver, release or impairment of any obligation evidenced or secured by any
of the Building Loan Documents or the NYTC Completion Guaranty;
(ii) affect the validity or enforceability of any Building Loan Document
or the NYTC Completion Guaranty or any of the rights and remedies of Agent
thereunder; or (iii) impair the right of Agent to obtain the appointment
of a receiver.  No officer, director,
member, shareholder, limited partner, employee, agent, representative,
beneficiary or trustee of, or any person executing this Agreement or any other
Building Loan Document or the NYTC Completion Guaranty in a representative
capacity on behalf of (solely by virtue of such execution) a Borrower Entity
shall ever be personally liable hereunder for the obligations of such Borrower
Entity, all liability of each Borrower Party being expressly limited to such
Borrower Entity (or any general partner, joint venturer, or other person having
liability for the obligations of such Borrower Entity as a matter of law) and
its assets, and all persons dealing with a Borrower Entity must look solely to
such Borrower Entity (or any general partner, joint venturer, or other person
having liability for the obligations of such Borrower Entity as a matter of
law) and its assets for the enforcement of any claim against such Borrower
Entity and in no event

 

141

 

shall any recourse be had
to the private property of any officer, director, member, shareholder, limited
partner, employee, agent, representative, beneficiary or trustee of, or any
person executing this agreement on behalf of (solely by virtue of such
execution), a Borrower Entity.

 

SECTION 11.17     Statute
of Limitations.  Borrower hereby
expressly waives and releases to the fullest extent permitted by law the
pleading of any statute of limitations as a defense to payment of the Building
Loan or performance of its obligations under any of the Building Loan Documents.

 

SECTION 11.18     Remedies
of Borrower Entities.  In the event
that a claim or adjudication is made that Agent or any Lender has acted
unreasonably or has unreasonably delayed acting with respect to any consent or
approval requested under any Building Loan Document in any case where by law or
under the Building Loan Document, it has an obligation to act reasonably or
promptly, Agent or such Lender shall not be liable for any monetary damages,
and the sole remedies of Borrower Entities shall be limited to injunctive
relief or declaratory judgment.

 

SECTION 11.19     Time
of the Essence.  Time is of the
essence of this Agreement and of each and every term, covenant and condition
herein.

 

SECTION 11.20     Survival.  This Agreement and all covenants,
agreements, representations and warranties made herein and in the certificates
delivered pursuant hereto shall survive the making by Lenders of the Building
Loan and the execution and delivery to Lenders of the Building Loan Notes
(regardless of any investigation made by Lenders or on their behalf), and shall
continue in full force and effect so long as all or any part of the Building
Loan is outstanding and unpaid.

 

SECTION 11.21     Usury.  This Agreement and the other Building Loan
Documents are subject to the express condition that at no time shall Borrower
Entities be obligated or required to pay interest on the Building Loan or loan
charges at a rate which could subject the holder of the Building Loan Notes to
either civil or criminal liability as a result of being in excess of the
Maximum Rate permitted by applicable law. 
If by the terms of any Building Loan Document, any Borrower Entity is at
any time required or obligated to pay interest on the Building Loan or loan
charges at a rate in excess of such Maximum Rate, the rate of interest or loan
charges under the Building Loan Notes shall be deemed to be immediately reduced
to such Maximum Rate and the interest payable shall be computed at such Maximum
Rate and all prior interest payments or loan charges in excess of such Maximum
Rate shall be applied and shall be deemed to have been payment in reduction of
the Outstanding Principal.  All sums
paid or agreed to be paid to Lenders for the use, forbearance, or detention of
the Building Loan or for loan charges shall, to the extent permitted by
applicable law, be amortized, prorated, allocated, and spread throughout the
full stated term of the Building Loan Notes until payment in full so that the
rate or amount of interest on account of the Building Loan does not exceed the
Maximum Rate from time to time in effect and applicable to the Building Loan
for so long as the Building Loan is outstanding.

 

142

 

SECTION 11.22     Successive
Actions.  A separate right of action
hereunder shall arise in favor of (a) Agent or (b) any other
Indemnified Party, as the case may be, each time Agent or such Indemnified
Party acquires knowledge of any matter indemnified by Borrower hereunder.  Separate and successive actions by Agent or
any Indemnified Party may be brought hereunder to enforce any of the provisions
hereof at any time and from time to time. 
To the extent permitted by law, no action hereunder shall preclude any
subsequent action, and Borrower hereby warrants and covenants not to assert any
defense in the nature of splitting of causes of action or merger of judgments.

 

SECTION 11.23     Confidentiality.  Borrower and Agent, for itself and on behalf
of Lenders, acknowledge that in connection with the Building Loan, certain
information shall be provided which the Providing Party deems proprietary and
confidential (such information, the “Information”).  Provided that the Providing Party specifies in writing, at the
time of its submission to the Receiving Party, that such information is
confidential, Borrower agrees and Agent, for itself and on behalf of Lenders,
agrees, that the Information shall be kept confidential and shall not be
disclosed to any third party except (a) as may be required by any
applicable court order or decree, or legal or administrative process;
(b) as necessary in connection with the enforcement by Agent of its rights
under the Building Loan Documents and the NYTC Completion Guaranty; (c) as
may be required by any Governmental Authority, bank regulatory body or
representative of any thereof arising out of or in connection with an
examination of Agent, any Lender or any Borrower Entity (as applicable);
(d) to any of the Receiving Party’s officers, directors, employees,
attorneys, accountants, agents, advisors or other representatives who require
access to Information to participate in the administration of the Building
Loan; or (e) in connection with any actual or proposed Assignment of all
or any part of Agent’s or any Lender’s interests in the Building Loan.  Without limiting the foregoing, Borrower and
Agent, for itself and on behalf of Lenders, acknowledge and agree that if any
report concerning the Loans or the Project appears in any media outlet
(including, without limitation, The New York Times, The Boston Globe, The
Worcester Telegram & Gazette and related web sites) owned by
NYTC Guarantor (the “News Outlets”), Borrower shall not be in violation of
this Section 11.23 as long as Borrower has not disclosed Information to
the News Outlets and keeps such Information confidential from the News Outlets
in accordance with its standard policies and procedures.  For purposes of this Section, “Information” shall
include the economic terms and provisions of the Building Loan and shall not
include (i) any information, product or structure internally developed by
any Receiving Party provided the same does not identify any economic terms of
the Building Loan; (ii) any information in any Receiving Party’s
possession or otherwise known to any Receiving Party prior to the commencement
of negotiations in connection with the consummation of the Building Loan;
(iii) any information which is, or becomes, public or part of the public
domain; and (iv) any information which was previously, or is subsequent to
the date hereof, made available to any Receiving Party by a source not known to
such Receiving Party to be bound by a confidentiality agreement with any
Borrower Entity, Agent or any Lender (as applicable).  Supplementing the foregoing, all publicity statements and press
releases issued by any Borrower Entity which refer to Agent, any Lender or the
Building Loan must be approved in advance by Agent.

 

143

SECTION 11.24     Reinstatement
of Obligations.  If at any time all
or any part of any payment made by on behalf of Borrower or received by Agent,
any Lender or any Indemnified Party under or with respect to this Agreement is
or must be rescinded or returned for any reason whatsoever (including, but not
limited to, the insolvency, bankruptcy or reorganization of Borrower), then the
obligations of Borrower hereunder shall, to the extent of the payment rescinded
or returned, be deemed to have continued in existence, notwithstanding such
previous payment, or receipt of payment by Agent, such Lender or such
Indemnified Party, and the obligations of Borrower hereunder shall continue to
be effective or be reinstated, as the case may be, as to such payment, all as
though such previous payment had never been made.

 

SECTION 11.25     Facsimile
Signatures.  Building Loan Documents
(other than any Building Loan Notes) and the NYTC Completion Guaranty may be
signed by facsimile.  The effectiveness
of any such signatures shall, subject to applicable Legal Requirements, have
the same force and effect as manually-signed originals and shall be binding on
all parties to the Building Loan Documents and the NYTC Completion
Guaranty.  Agent may also require that
any such documents and signatures be confirmed by a manually-signed original
thereof, provided that the failure to request or deliver the same shall not
limit the effectiveness of any facsimile signature.

 

[signature page follows]

 

144

 

IN WITNESS WHEREOF, Borrower, Initial Agent and Agent
have executed this Agreement on the date first above written.

 

	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  THE NEW YORK TIMES
  BUILDING LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  FC Lion LLC, member

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  FC 41st Street Associates, LLC, its

  managing member

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  RRG 8 South, Inc., its
  managing

  member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ David L. Berliner

  
	
   

  	
   

  	
   

  	
  Name:

  	
  David L. Berliner

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Sr. Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  NYT Real Estate Company
  LLC, member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ R Anthony Benten

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  R Anthony Benten

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INITIAL AGENT:

  
	
   

  	
   

  
	
   

  	
  NEW YORK STATE URBAN DEVELOPMENT

  CORPORATION d/b/a EMPIRE STATE

  DEVELOPMENT CORPORATION,

  as Initial Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Anita W.
  Laremont

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Anita W. Laremont

  
	
   

  	
   

  	
  Title:

  	
  SVP, Legal and General
  Counsel

  
											

 

145

 

	
   

  	
   

  	
   

  	
  AGENT:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  GMAC COMMERCIAL MORTGAGE

  CORPORATION, as Agent

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Vacys R. Garbonkus

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  Vacys R. Garbonkus

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THE UNDERSIGNED ARE EXECUTING THIS

  AGREEMENT AS THE BENEFICIAL OWNERS OF

  THE NYTC UNIT AND FC UNITS, RESPECTIVELY:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FC MEMBER:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FC LION LLC

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  FPC 41st Street Associates, LLC, its
  managing member

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  RRG 8 South, Inc., its
  managing member

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ David L. Berliner

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  David L. Berliner

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Sr. Vice President

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NYTC MEMBER:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NYT REAL ESTATE COMPANY LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ R Anthony Benten

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  R Anthony Benten

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Manager

  	
   

  	
   

  
																	

 

147

 

	
  STATE OF NEW YORK

  	
  )

  	
   

  
	
   

  	
  )  ss.:

  	
   

  
	
  COUNTY OF NEW YORK

  	
   

  	
   

  

 

On the 23 day of June in
the year 2004 before me, the undersigned, personally appeared Vacys R.
Garbonkus 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 he executed the same in his capacity and that by
his signature on the instrument, the individual, or the person upon behalf of
which the individual acted, executed the instrument.

 

	
   

  	
  /s/ Brooke Spiegel

  
	
   

  	
  Notary Public

  

 

	
   

  	
   

  	
  BROOKE SPIEGEL

  Notary Public, State of New York

  No. 01SP4954267

  Qualified in New York County

  Commission Expires Aug. 7, 2005

  

 

	
  STATE OF NEW YORK

  

  COUNTY OF NEW YORK

  	
  

  )  ss.:

  )

  	
   

  

 

On the 10 day of June in
the year 2004 before me, the undersigned, personally appeared David L. Berliner
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 he executed the same in his capacity, and that by his
signature on the instrument, the individual, or the person upon behalf of which
the individual acted, executed the instrument.

 

	
   

  	
  /s/ Jeanne Mucci

  
	
   

  	
  Notary Public

  

 

	
   

  	
   

  	
  JEANNE MUCCI

  Notary Public, State of New York

  No. 30-4834577 

  Qualified in Nassau County

  Commission Expires March 30, 2007

  

 

	
  STATE OF NEW YORK

  

  COUNTY OF NEW YORK

  	
  )

  )  ss.:

  )

  	
   

  

 

On
the 23 day of June in the year 2004 before me, the undersigned, personally
appeared R. Anthony Benten 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 he executed the same in his
capacity, and that by his signature on the instrument, the individual, or the
person upon behalf of which the individual acted, executed the instrument.

 

	
   

  	
  /s/ Brooke Spiegel

  
	
   

  	
  Notary Public

  
	
   

  	
   

  
	
   

  	
  BROOKE SPIEGEL

  Notary Public, State of New York

  No. 01SP4954267

  Qualified in New York County

  Commission Expires Aug. 7, 2005

  

 

 

	
  STATE OF NEW YORK

  	
  )

  	
   

  
	
   

  	
  )  ss.:

  	
   

  
	
  COUNTY OF NEW YORK

  	
  )

  	
   

  

 

On the 10 day of June in
the year 2004 before me, the undersigned, personally appeared David L. Berliner
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 he executed the same in his capacity, and that by his
signature on the instrument, the individual, or the person upon behalf of which
the individual acted, executed the instrument.

 

	
   

  	
  /s/ Jeanne Mucci

  
	
   

  	
  Notary Public

  

 

	
   

  	
   

  	
  JEANNE MUCCI

  Notary Public, State of New York, 

  No. 30-4834577 

  Qualified in Nassau County

  Commission Expires March 30, 2007

  

 

	
  STATE OF NEW YORK

  

  COUNTY OF NEW YORK

  	
  

  )  ss.

  	
   

  

 

COUNTY OF NEW YORK

 

On the 23 day of June in the year 2004
before me, the undersigned, personally appeared R. Anthony Benten 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 he executed the same in his
capacity, and that by his signature on the instrument, the individual, or the
person upon behalf of which the individual acted, executed the instrument.

 

	
   

  	
  /s/ Brooke Spiegel

  
	
   

  	
  Notary Public

  

 

	
   

  	
   

  	
  BROOKE SPIEGEL

  Notary Public, State of New York

  No. 01SP4954267

  Qualified in New York County

  Commission Expires Aug. 7, 2005

  

 

	
  STATE OF NEW YORK

  

  COUNTY OF NEW YORK

  	
  

  )  ss.

  )

  	
   

  

 

On the
        day of
     in the year 2004 before me, the undersigned,
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 he executed the same in his capacity, and that by his signature on
the instrument, the individual, or the person upon behalf of which the
individual acted, executed the instrument.

 

	
   

  	
   

  
	
   

  	
  Notary Public

  

 

 

	
  STATE OF NEW YORK

  	
  )

  	
   

  
	
   

  	
  )  ss.:

  	
   

  
	
  COUNTY OF NEW YORK

  	
   

  	
   

  

 

On the
        day of
       in the year 2004 before me, the
undersigned, 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 he executed the same in his capacity, and that by his signature on
the instrument, the individual, or the person upon behalf of which the
individual acted, executed the instrument.

 

	
   

  	
   

  
	
   

  	
  Notary Public

  

 

	
  STATE OF NEW YORK

  	
  )

  	
   

  
	
   

  	
  )  ss.:

  	
   

  
	
  COUNTY OF NEW YORK

  	
  )

  	
   

  

 

On the
      day of
        in the year 2004 before me, the
undersigned, 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
he executed the same in his capacity, and that by his signature on the
instrument, the individual, or the person upon behalf of which the individual
acted, executed the instrument.

 

	
   

  	
   

  
	
   

  	
  Notary Public

  

 

	
  STATE OF NEW YORK

  	
  )

  	
   

  
	
   

  	
  )  ss.:

  	
   

  
	
  COUNTY OF NEW YORK

  	
  )

  	
   

  

 

On the 23 day of June in
the year 2004 before me, the undersigned, personally appeared Anita W. Laremont
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 he executed the same in his capacity, and that by his
signature on the instrument, the individual, or the person upon behalf of which
the individual acted, executed the instrument.

 

	
   

  	
  /s/ Carmen Doris Brana

  
	
   

  	
  Notary Public

  

 

	
   

  	
   

  	
  CARMEN
  DORIS BRANA

  Notary Public, State of New York

  No. 41-4706133

  Qualified in New York County

  Commission Expires March 30, 2007

  

 

 

Exhibit A

 

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 or place of
BEGINNING.

 

Being the property
located at and known as Block 1012, Lots 1, 5, 8, 14, 53, 59, 61, 62, 63 and
part of 15 on the Tax Assessment Map of the County of New York.

 

A - 1

 

Exhibit B

 

Permitted Exceptions

 

1.             Railroad Consent
recorded in Liber 3192 Cp. 302. (Affects Lot 14).

 

2.             Terms, covenants,
conditions, restrictions, provisions and easements contained in the deed made
by New York State Urban Development Corporation d/b/a Empire State Development
Corporation to 42nd St. Development Project, Inc. dated as of September 8,
2003 and recorded October 24, 2003 as CRFN2003000433117.

 

3.             Terms, covenants,
conditions, restrictions, provisions, easements and right of reversion
contained in the deed made by New York State Urban Development Corporation
d/b/a Empire State Development Corporation to The City of New York, dated as of
September 8, 2003 and recorded October 24, 2003 as CRFN2003000433118.

 

4.             Agreement (Easement)
among The New York Times Building LLC, The New York City Transit Authority, 42nd St. Development Project, Inc.
and The City of New York, dated as of December 12, 2001 and recorded
October 24, 2003 as CRFN2003000433126.

 

5.             Site 8 South Land
Acquisition and Development Agreement among New York State Urban Development
Corporation d/b/a Empire State Development Corporation, 42nd St. Development Project, Inc.
and The New York Times Building LLC, dated as of December 12, 2001 and
recorded October 24, 2003 as CRFN2003000433119.

 

6.             First Amendment to
Site 8 South Land Acquisition and Development Agreement among New York State
Urban Development Corporation d/b/a Empire State Development Corporation, 42nd St. Development Project, Inc.
and The New York Times Building LLC, dated as of December 14, 2003 and
recorded October 24, 2003 as CRFN2003000433120.

 

7.             Site 8 South Project
Agreement among New York State Urban Development Corporation d/b/a Empire State
Development Corporation, 42nd
St. Development Project, Inc., The City of New York, The New York Times Building
LLC, NYT Real Estate Company LLC and FC Lion LLC, dated as of December 12,
2001 and recorded October 24, 2003 as CRFN2003000433116.

 

8.             Site 8 South
Declaration of Design, Use and Operation made by New York State Urban
Development Corporation d/b/a Empire State Development Corporation and 42nd St. Development Project,
Inc., dated as of December 12, 2001 and recorded October 24, 2003 as
CRFN2003000433121.

 

B - 1

 

9.             Terms, covenants,
provisions and option to purchase contained in the Agreement of Ground Lease
made between 42nd St.
Development Project, Inc., as Landlord, and The New York Times Building LLC, as
Tenant, dated as of December 12, 2001, a memorandum of which was recorded
October 24, 2003 as CRFN2003000433122.

 

10.           Terms, covenants,
provisions and option to purchase contained in the Agreement of Sublease made
between The New York Times Building LLC, as Landlord, and FC Lion LLC, as
Tenant, dated as of December 12, 2001, a memorandum of which was recorded
October 24, 2003 as CRFN2003000433123.

 

11.           Terms, covenants,
provisions and option to purchase contained in the Agreement of Sublease made
between The New York Times Building LLC, as Landlord, and FC Lion LLC, as
Tenant, dated as of December 12, 2001, a memorandum of which was recorded
October 24, 2003 as CRFN2003000433124.

 

12.           Terms, covenants,
provisions and option to purchase contained in the Agreement of Sublease made
between The New York Times Building LLC, as Landlord, and NYT Real Estate
Company LLC, as Tenant, dated as of December 12, 2001, a memorandum of
which was recorded October 24, 2003 as CRFN2003000433125.

 

13.           Permitted Leases.

 

14.           Liens created by the
Loan Documents.

 

B - 2

 

Exhibit C

 

Certificate of Non-Bank
Status

 

To:          The New York Times
Building LLC

 

From:      [Name of Bank and Lending
Office]

 

Date:

 

Re:  Building Loan
and Project Loan Agreement

 

Ladies and Gentlemen:

 

Reference is hereby made
to the Building Loan Agreement and that certain Project Loan Agreement, each
dated as of [          ],
2004, among THE NEW YORK TIMES BUILDING LLC, NEW YORK STATE URBAN DEVELOPMENT
CORPORATION d/b/a EMPIRE STATE DEVELOPMENT CORPORATION, as initial agent
(“Initial Agent”), for itself and for the benefit of any co-lenders as may
exist from time to time(such lenders collectively, including any successors and
assigns, “Lenders”), and GMAC COMMERCIAL MORTGAGE CORPORATION and any successor
thereto, as agent (including as successor to Initial Agent), for itself and any
other co-lenders as may exist from time to time.  Pursuant to the provisions of Sections 3.16(e) of such
Building Loan Agreement and such Project Loan Agreement, the undersigned hereby
certifies that it is not a “bank” within the meaning of Section 881(c)(3)
of the Internal Revenue Code of 1986, as amended.

 

	
   

  	
  Yours faithfully,

  
	
   

  	
   

  
	
   

  	
  [NAME OF BANK]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

C - 1

 

Exhibit D

 

Form of Condominium
Subordination Agreement

 

 

D - 1

 

	
  County of New York

  	
   

  	
  After recording, please
  return to:

  
	
  Section: 4

  	
   

  	
  Paul, Weiss, Rifkind,
  Wharton & Garrison LLP

  
	
  Block: 1012

  	
   

  	
  1285 Avenue of the
  Americas

  
	
  Lots: 
  [              ]
  (f/k/a Lots 1, 5, 8,

  	
   

  	
  New York, NY 10019

  
	
  14, 53, 59, 61, 62, 63
  [and part of 15])

  	
   

  	
  Attention: Harris B.
  Freidus, Esq.

  

 

SUBORDINATION
AGREEMENT

 

THIS SUBORDINATION
AGREEMENT (this “Agreement”) is entered into as of
                        
     , 200    by GMAC COMMERCIAL
MORTGAGE CORPORATION, a California corporation with an address at 100 South
Wacker Drive, Suite 400, Chicago, Illinois, 60606 or any successor thereto, as
agent (including as successor to Initial Agent (as hereinafter
defined))(including its successors and assigns as agent, “Agent”) for itself and on
behalf of the lenders as may exist from time to time (such lenders
collectively, including any successors and assigns, “Lenders” and each individually
a “Lender”).

 

W  I
T  N  E  S  S  E  T  H:

 

WHEREAS, pursuant to that
certain Building Loan Agreement and that certain Project Loan Agreement
(collectively, as the same have been and may be revised, restated, amended or
modified from time to time, the “Loan Agreement”), each dated as of
June    , 2004 among The New York Times Building LLC (“Borrower”),
New York State Urban Development Corporation d/b/a Empire State Development
Corporation, as initial agent (“Initial Agent”), for itself and for the
benefit of Lenders, and Agent, for itself and on behalf of Lenders, the Lenders
have agreed to advance to Borrower loans in the maximum aggregate principal
amount of $320,000,000 (collectively, the “Loan”);

 

WHEREAS, the proceeds of
the Loan are being used to construct certain improvements (the “Improvements”)
on land (the “Land”) demised to Borrower pursuant to that certain Agreement
of Lease by and between 42nd St. Development Project, Inc. (“Ground
Lessor”) and Borrower, dated as of December 12, 2001 (the “Ground Lease”)
which Land is more particularly described on Exhibit A hereto;

 

WHEREAS, as security for
the Loan, Borrower has executed that certain Ground Leasehold Building Loan
Mortgage, Assignment of Leases, Security Agreement and Subordination Agreement
dated as of 
June    , 2004 and recorded at the Office of the
City Register of New York County on
                        
     , 200   as CRFN#
                             
and that certain Ground Leasehold Project Loan Mortgage, Assignment of Leases,
Security Agreement and Subordination Agreement dated as of
June   , 2004 and recorded at the Office of the City Register of
New York County on
                        
     , 200   as CRFN#
                             
(collectively, as the same may be extended, renewed, revised, restated,
replaced, spread, amended, consolidated, supplemented, assigned or modified
from time to time, the “Mortgages”);

 

 

WHEREAS, (a) Borrower has
assigned to Ground Lessor all of Borrower’s right, title and interest in the
Ground Lease and the Severance Subleases (as defined in the Ground Lease)
pursuant to that certain Assignment and Assumption Agreement, dated as of
                        
     , 200  , which has been submitted to
the Office of the City Register of New York County for recordation immediately
prior to the submission of this Agreement for recording and (b) Agent has
released the Ground Lease and the Severance Sublease to which NYT Real Estate
Company LLC (“NYTC Member”) is a party from the lien of the Mortgages;

 

WHEREAS, the Land and the
Improvements have been submitted to the provisions of Article 9-B of the
Real Property Law of the State of New York pursuant to that certain Declaration
of Leasehold Condominium of the Premises known as The New York Times Building,
New York, New York 10019, dated as of
                        
     , 200   (together with the Condominium
By-Laws attached as Exhibit A thereto, the “Declaration”; all capitalized
terms used herein but left undefined shall have the meanings assigned to such
terms in the Declaration) and recorded on
                        
     , 200   at the Office of the City
Register of New York County as CRFN #
                             ;

 

WHEREAS, as a result of
the recording of the Declaration and the release referred to above, the
Mortgages now encumber solely the FC Collective Unit and the Retail Unit,
together with their respective undivided percentage interest in the Common
Elements; and

 

WHEREAS, Agent has agreed
to evidence certain lien priority agreements as between the Mortgages and the
Declaration pursuant to this Agreement.

 

NOW THEREFORE, for good
and valuable consideration, the receipt and legal sufficiency of which is
hereby acknowledged, Agent hereby agrees as follows:

 

1.             Lien Priority.  Agent, for itself and on behalf of Lenders,
does acknowledge and agree that in the event of any foreclosure (or acceptance
of a deed in lieu of foreclosure) of any Unit subject to the lien of the
Mortgages by Agent, any designee of Agent or any third party purchaser, it,
such designee or such third party purchaser shall take title to such Unit in
connection with such foreclosure (or acceptance of a deed in lieu thereof)
subject to the Declaration and the Board of Managers’ Lien.  Neither the immediately preceding sentence,
nor any conflict or inconsistency between the terms and provisions of the
Mortgages, on the one hand, and the terms and provisions of the Declaration, on
the other hand, shall be construed to limit, nullify, prevent or restrict Agent
from enforcing any provision in, or from exercising any rights or remedies of
Agent or the Lenders under, the Mortgages.

 

2.             Successors and Assigns.  Whenever in this Agreement any party is
named or referred to, the successors and assigns of such party or parties shall
be included, whether so expressed or not. 
All obligations, covenants and agreements contained in this Agreement
shall be binding on, and inure to the benefit of, the respective successors and
assigns of the parties hereto whether so expressed or not.

 

2

 

3.             Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of New York applicable to
contracts made and to be performed solely within such State.

 

4.             Counterparts.  This Agreement may be executed in any number of counterparts and
all of such counterparts shall together constitute one and the same instrument.

 

[SIGNATURE
ON NEXT PAGE]

 

3

 

IN WITNESS WHEREOF,
Agent, for itself and on behalf of Lenders, has executed this Agreement as of
the date first set forth above.

 

	
   

  	
  AGENT:

  
	
   

  	
   

  
	
   

  	
  GMAC COMMERCIAL
  MORTGAGE

  CORPORATION, as Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
  STATE OF
                             

  	
   

  	
  )

  
	
   

  	
  )  ss.:

  
	
  COUNTY OF
                       

  	
   

  	
  )

  
				

 

On the
         day of
        in the year 200   before
me, the undersigned, 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 he executed the same in his capacity, and that by his
signature on the instrument, the individual, or the person upon behalf of which
the individual acted, executed the instrument.

 

	
   

  	
   

  
	
   

  	
  Notary Public

  

 

 

EXHIBIT
A

 

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

 

 

SAID LAND AND
IMPROVEMENTS NOW KNOWN AS Lots
[                            ]
as more particularly described in the Declaration and on the floor plans
certified by
                                                    
on
                        
   , 200   and filed with the Real Property Assessment
Department on
                  
    , 200   as Condominium Plan No.
         and also filed in the Office
of the City Register of New York County on
                  
    , 200    as CFRN #
                                                      .

 

 

Exhibit E

 

Draw Request

 

 

E - 1

 

DRAW
REQUEST

 

                            ,
200  

 

GMAC Commercial Mortgage
Corporation, as Agent

100 South Wacker Drive, Suite 400

Chicago, Illinois  60606

Attn:  Phillip J. Keel, Vice President

 

[                                                

                                                

                                                

Attn: 
                                      ](1)

 

Re:          Building Loan Agreement
dated as of
                  
    , 2004 (as revised, restated, amended or modified from
time to time, the “Building Loan Agreement”) and Project Loan
Agreement dated as of
              
      , 2004 (as revised, restated, amended or
modified from time to time, the “Project Loan Agreement”; together with the
Building Loan Agreement, the “Loan Agreements”) each by and among The New
York Times Building LLC (“Borrower”), New York State Urban
Development Corporation, d/b/a Empire State Development Corporation, as initial
agent (“Initial
Agent”) for itself and for the benefit of any lenders as may exist
from time to time (such lenders, collectively, including any successors and
assigns, “Lenders”),
and GMAC Commercial Mortgage Corporation and any successor thereto, as agent
(including as successor to Initial Agent) (including any successors and assigns
as agent, “Agent”)
for itself and on behalf of Lenders. 
All capitalized terms not defined herein shall have the meanings
ascribed to them in the Loan Agreements.

 

Ladies and Gentlemen:

 

In accordance with the
Loan Agreements, Borrower desires to obtain an advance of
                                      
($                    )
(the “Building
Loan Advance”) and an advance of
                          
($                      )
(the “Project
Loan Advance”; together

 

(1)  Copies of the Draw Request do not need to go
to the Disbursement Agent unless Agent has made the election under
Section 5.03(b)(ii) of the Building Loan Agreement.

 

 

with the Building Loan
Advance, the “Advances” and individually, an “Advance”) on
                                
(the “Requested
Advance Date”) as follows: 
$                      
on account of Building Loan Costs for the FC Units, $                  
on account of Building Loan Costs for the NYTC Units,
$                    
on account of Project Loan Costs for the FC Units, and $                  
on account of Project Loan Costs for the NYTC Units.  Such allocations (a) are more particularly set forth on the
attachments to the Sworn Owner’s Affidavit which is attached hereto and
(b) have been prepared in accordance with the Cost Allocation
Methodology.  In order to induce Lenders
to make each Advance, Borrower hereby represents and warrants the following to
Agent and Lenders:

 

1.             The period covered by
this Draw Request is
                                                .

 

2.             The Improvements have
not been injured or damaged by fire, explosion, accident, flood or other
casualty except: 
                                                      .

 

3.             All Building Loan
Costs and Project Loan Costs for the payment of which Lenders have previously
advanced funds have in fact been paid and all such prior Advances have been
used for the purposes requested therefor except as follows: 
                                .

 

4.             The subject Advances
shall be used for the purposes set forth in the Sworn Owner’s Statement
attached hereto.

 

5.             No Borrower Entity
has any defenses to or offsets against the payment of any amounts due to Agent
and/or any Lender under or in connection with the Loan Documents, or defenses,
claims or counterclaims against the payment and performance of any of their
respective obligations under the Loan Documents.  Borrower is authorized to make this representation on behalf of
all of the other Borrower Entities.

 

6.             The amount of each
Advance (except if such advance is the final Advance) equals at least Fifty
Thousand and No/100 Dollars ($50,000.00). 
No other Draw Request has been submitted in this calendar month and the
most recent Draw Request was submitted at least fifteen (15) days prior to the
date hereof.  The total of all previous
Advances made under the Building Loan and the Project Loan, together with the
subject Advances, is shown on the attachments hereto.  The total of all previous Advances under the Building Loan
Agreement and under the Project Loan Agreement allocable to the Maximum
Amount—FC, together with that portion of the subject Advance allocable to the
Maximum Amount—FC, does not exceed the Maximum Amount—FC.  The total of all previously requested
Advances under the Building Loan Agreement and under the Project Loan Agreement
allocable to the Maximum Amount—NYTC, together with that portion of the subject
Advance allocable to the Maximum Amount—NYTC, does not exceed the Maximum
Amount—NYTC.  No item of expense
specified in the Sworn Owner’s Affidavit attached hereto has previously been
made the basis of any prior Advance.

 

7.             The purpose of the
Advances is to pay the Building Loan Costs and Project Loan costs detailed in
the Sworn Owner’s Statement and accompanying invoices attached hereto and made
a part hereof.

 

2

 

	
   

  	
   

  
	
  Initials of

  
	
  Borrower

  

 

8.             The costs of any
additional documentation, legal fees or title insurance required by Agent to
evidence the Advances and preserve the priority of the lien of the Building
Loan Mortgage and Project Loan Mortgage and the other Security Documents is a
Reimburseable Cost.

 

9.             All conditions
precedent to the Advances set forth in Section 4.02 and (if applicable)
4.03 of the Building Loan Agreement and the Project Loan Agreement have been
fulfilled.

 

10.           The information set
forth herein is true, correct and complete as of the date hereof and will be
true, correct and complete as of the Requested Advance Date.

 

This letter shall
constitute a Borrower’s instruction to Lenders to pay to Agent [the
Disbursement Agent] the Advances in the total amount indicated on the
attachments in the Sworn Owner’s Statement, and (b) Borrower’s
instructions and authorization to [Agent] [Disbursement Agent] to disburse such
Advances and any applicable Other Funds to pay each of the expenses shown in the
enclosed invoices, unless (i) any such amount with respect to interest,
fees or other amounts due and payable to Agent and/or any Lender which Agent
and Lenders are, in accordance with the Building Loan Agreement or Project Loan
Agreement, entitled to subtract from such Advance [or (ii) Disbursement
Agent is otherwise instructed by Agent]. 
[Disbursement Agent acknowledges, however, that it shall only disburse
such Loan proceeds in accordance with the Construction Loan Disbursement
Agreement.]

 

[Signature page follows]

 

3

 

	
   

  	
  Borrower:

  
	
   

  	
   

  
	
   

  	
  THE NEW YORK TIMES
  BUILDING LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  FC LION LLC, member

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  FC 41st Street
  Associates, LLC, its

  managing member

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  RRG 8 South, Inc., its
  managing

  member

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  By:

  	
  NYT Real Estate Company
  LLC, member

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
									

 

 

Sworn
Owner’s Statement

 

	
  State of New York

  	
  )

  	
   

  
	
   

  	
  )

  	
  ss:

  
	
  County of New York

  	
  )

  	
  Escrow No.
                

  

 

The affiant,
                                            ,
being duly sworn on oath deposes and says the following in his/her capacity as
the
                            
of RRG 8 South, Inc., which is the managing member of FC 41st Street
Associates, LLC, which is the managing member of FC Lion LLC, which is a member
of The New York Times Building LLC (“Borrower”), which is the owner of the
premises known as The New York Times Building, New York, New York:

 

                1.             That he/she is
authorized to deliver this statement on behalf of Borrower and is thoroughly
familiar with the facts and circumstances concerning the premises described
above;

                

                2.             Since the date of the
last Sworn Owner’s Statement submitted in connection with a Draw Request, the
only services performed, materials supplied, work done or reimbursements
furnished in connection with the mentioned premises for whom Borrower is
requisitioning funds are listed on the attachments hereto;

                

                3.             That the contracts to
which Borrower, or any Affiliate thereof, is a party as to which Borrower is
not requisitioning funds (whether because the third party thereto is not yet
entitled to payment pursuant to the applicable contract, or because there is a
dispute between such third party and Borrower), together with the amount of any
bills, invoices or payment claims submitted by such third party, if applicable
and the reason(s) why payment has not been requisitioned are set forth on the
attachments hereto; and

                

                4.             That, to the
affiant’s knowledge, the facts set forth in this statement and the attachments
are true and complete.

                

Notwithstanding anything
to the contrary contained in this Sworn Owner’s Statement, the affiant shall
not have any personal liability hereunder. 
Borrower does have liability hereunder to the same extent it has
liability under any other Loan Document.

 

 

	
   

  	
  Signed:

  	
   

  
	
   

  	
  Name:

  	
   

  

 

Subscribed and sworn to
before me this        day of
                      ,
200  .

 

 

	
   

  	
   

  
	
   

  	
  Notary Public

  

 

 

Exhibit F

 

Description of
Improvements

 

 

F - 1

 

Borrower intends
to construct upon the Land a 52 story office building (with ground floor retail)
located at 820 Eighth Avenue, (block 1012, lots 1, 5, 8 and 14, part of 15, 53,
59, 61, 62 and 63) New York, New York, consisting of approximately 1,539,000
square feet of total gross building area of above grade space, additional below
grade space and additional roof top and mechanical space.

 

 

Exhibit G

 

Lien Law Affidavit

 

 

G - 1

 

AFFIDAVIT
PURSUANT TO SECTION 22

 

OF
THE LIEN LAW OF THE STATE OF NEW YORK

 

	
  STATE OF NEW YORK

  	
   

  
	
   

  	
  SS

  
	
  COUNTY OF KINGS

  	
   

  

 

Joanne
Minieri, being duly sworn, deposes and says:

 

I
am the Senior Vice President and Treasurer of RRG 8 South, Inc., the managing
member of FC 41st Street Associates, LLC, the managing member of FC Lion LLC,
member of The New York Times Building LLC (the “Borrower”), the borrower under
that certain Building Loan Agreement, dated as of June
      , 2004 by and among GMAC Commercial
Mortgage Corporation, as agent, the Borrower, and the New York State urban
Development Corporation d/b/a Empire State Development Corporation, as initial
agent (the “Building Loan Agreement”) to which this affidavit is attached.

 

The
consideration paid, or to be paid, by the Borrower for the Building Loan
described therein from the proceeds of the Building Loan is zero. Other
expenses; constituting cost of the improvements incurred, or to be incurred, in
connection with the Building Loan and advanced or to be advanced pursuant to
the Building Loan Agreement are as follows:

 

	
  (a)

  	
   

  	
  Interest on the Building
  Loan during construction

  	
   

  	
  $

  	
  14,066,462.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Insurance during
  construction

  	
   

  	
  $

  	
  72,197.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Architect’s
  Fees, Engineer’s Fees and Prints

  	
   

  	
  $

  	
  2,814,234.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  Premium on Contractor’s
  Payment and or Performance Bonds

  	
   

  	
  $

  	
  897,443.00

  	
   

  

 

The
amounts allocated to the items specified above may be reallocated among such
items or to the other expenses constituting cost of the improvements.

 

	
   

  	
   

  	
  The net sum available to the Borrower for the
  improvements is 

  	
   

  	
  $

  	
  152,679,143.00

  	
   

  

 

This
statement is made pursuant to Section 22 of the Lien Law of the State of New
York and is hereby made a part of the Building Loan Agreement.

 

The
facts herein stated are true to the knowledge of the deponent. The deponent is
authorized to sign this affidavit on behalf of the Borrower.

 

	
   

  	
   

  	
  /s/ Joanne Minieri

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Sworn to before me this 23rd

  	
   

  	
   

  
	
  day of June, 2004

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Brooke Spiegel

  	
   

  	
   

  	
   

  
	
  Notary Public

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BROOKE
  SPIEGEL

  	
   

  	
   

  
	
  Notary
  Public, State of New York

  	
   

  	
   

  
	
  No.
  01SP4954267

  	
   

  	
   

  
	
  Qualified
  in New York County

  	
   

  	
   

  
	
  Commission
  Expires Aug. 7, 2005

  	
   

  	
   

  
					

 

G - 2

 

 

Exhibit H

 

Form of Non-Disturbance
Agreement

 

 

H - 1

 

SUBORDINATION,
NON-DISTURBANCE AND ATTORNMENT AGREEMENT

 

This Subordination,
Non-Disturbance and Attornment Agreement (this “Agreement”) is made as of
                           ,
200    , between GMAC COMMERCIAL MORTGAGE CORPORATION, a
California corporation and any successor thereto, as agent (including as
successor to Initial Agent (as hereinafter defined)) (including any of its
successors and assigns as agent, “Agent”), for itself and any co-lenders as
may exist from time to time (such lenders collectively, including any
successors and assigns, “Lenders”), [Tenant] (“Tenant”) and [Landlord] (“Landlord”).

 

RECITALS

 

A.    Tenant is the
tenant under a certain lease (the “Lease”), dated as of
                                  ,
            , with
Landlord, of premises described in the Lease (the “Premises”) as more
particularly described in Exhibit A hereto.

 

B.    This Agreement
is being entered into in connection with (i) those certain loans
(collectively, the “Construction Loan”) which Lenders have
agreed to make to The New York Times Building LLC (“Owner”) pursuant to that
certain Building Loan Agreement and that certain Project Loan Agreement, each
dated as of June     , 2004 and each by and among The
New York Times Building LLC, New York State Urban Development Corporation d/b/a
Empire State Development Corporation, as initial agent (“Initial Agent”), for itself
and for the benefit of Lenders, and Agent, for itself and on behalf of Lenders,
which Loans are secured, in part, by that certain Ground Leasehold Building
Loan Mortgage, Assignment of Leases, Security Agreement and Subordination
Agreement, dated as of June       , 2004 (as
the same may hereafter be amended or modified, the “Building Loan Mortgage”);
that certain Ground Leasehold Project Loan Mortgage, Assignment of Leases,
Security Agreement and Subordination Agreement, dated as of
June       , 2004 (as the same may hereafter
be amended or modified, the “Project Loan Mortgage”); that certain
Assignment of Leases and Rents (Building Loan Mortgage) dated as of
June       , 2004 (as the same may hereafter
be amended or modified, the “Building Loan Assignment”); and that
certain Assignment of Leases and Rents (Project Loan Mortgage), dated as of
June       , 2004 (as the same may hereafter
be amended or modified, the “Project Loan Assignment”).

 

C.            The Building Loan
Assignment and Project Loan Assignment are collectively referred to herein as
the “Assignments.”  The Building Loan Mortgage and Project Loan Mortgage
are collectively referred to herein as the “Mortgages”.  The Assignments and Mortgages, together with
all other documents executed and delivered or to be executed and delivered in
connection with the Construction Loan, are collectively referred to herein as
the “Loan
Documents”.

 

D.            Landlord is a member
of Owner and has consented to the Mortgages and the Assignments and has
executed and delivered the Mortgages and the Assignments.  Each Mortgage covers, among other things,
the Premises, and each Assignment covers, among other things, 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.             Tenant agrees that
the Lease and all terms and conditions contained therein and all rights,
options, liens and charges created thereby is and shall be subject and
subordinate in all respects to the Loan Documents, the liens created thereby,
all present or future advances thereunder and all renewals, amendments,
spreaders, modifications, consolidations, replacements, increases and
extensions thereof, to the full extent of all amounts secured by the Loan
Documents from time to time.

 

2.             Agent agrees that, if
Agent exercises any of its rights under the Loan Documents such that it becomes
the owner of the Premises, including but not limited to an entry by Agent
pursuant to any Mortgage, a foreclosure under any Mortgage, a power of sale
under any Mortgage or otherwise: 
(a) the Lease shall continue in full force and effect as a direct
lease between Agent and Tenant, and subject to all the terms, covenants and
conditions of the Lease, and (b) Agent shall not disturb Tenant’s right of
quiet possession of the Premises under the terms of the Lease so long as Tenant
is not in default beyond any applicable grace period of any term, covenant or
condition of the Lease.

 

3.             Tenant agrees that,
in the event of an exercise of the power of sale or foreclosure of any Mortgage
by Agent or the acceptance of a deed in lieu of foreclosure by Agent or any
other succession of Agent to ownership of the Premises, Tenant will attorn to
and recognize Agent 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 the same terms and conditions as are set forth in the
Lease, and Tenant hereby agrees to pay and perform all of the obligations of
Tenant pursuant to the Lease.

 

4.             Tenant agrees that,
in the event Agent succeeds to the interest of Landlord under the Lease,
neither Agent nor Lenders shall be:

 

(a)           liable in any way for
any act, omission, neglect or default of any prior Landlord (including, without
limitation, the then defaulting Landlord), except to the extent such act,
omission, neglect or default accrues from and after Agent succeeds to the
interest of Landlord; or

 

(b)           subject to any claim,
defense, counterclaim or offsets which Tenant may have against any prior
Landlord (including, without limitation, the then defaulting Landlord), except
to the extent such claim, defense, counterclaim or offset accrues  from and after the date that Agent succeeds
to the interest of Landlord under the Lease; or

 

2

 

(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 Agent or required under the Lease to be so paid in Advance; or

 

(d)           bound by any obligation
to make any payment to Tenant which was required to be made prior to the time
Agent succeeded to any prior Landlord’s interest, except for any work
allowance, work credit or any other similar payments to be made to Tenant under
the Lease; or

 

(e)           accountable for any
monies deposited with any prior Landlord (including security deposits), except
to the extent such monies are actually received by Agent; or

 

(f)            bound by any amendment
or modification of the Lease made without the written consent of Agent, which
consent shall not be unreasonably withheld or delayed.

 

Subject to paragraph 2
above, nothing contained herein shall prevent Agent from naming Tenant in any
foreclosure or other action or proceeding initiated in order for Agent to avail
itself of and complete any such foreclosure or other remedy if such joinder
shall be required by law.

 

5.             Tenant hereby agrees
to give to Agent copies of all notices of Landlord default(s) under the Lease
in the same manner as, and whenever, Tenant shall give any such notice of
default to Landlord and no such notice of default shall be deemed given to
Landlord unless and until a copy of such notice shall have been so delivered to
Agent.  Agent shall have the right but
no obligation to remedy any Landlord default under the Lease, or to cause any
default of Landlord under the Lease to be remedied, and for such purpose Tenant
hereby grants Agent, in addition to the period given to Landlord for remedying
defaults, an additional twenty (20) days in the case of a monetary default and
an additional sixty (60) days in the case of a non-monetary default to remedy,
or cause to be remedied, any such default. 
Tenant shall accept performance by Agent of any term, covenant,
condition or agreement to be performed by Landlord under the Lease with the
same force and effect as though performed by Landlord.  No Landlord default under the Lease shall
exist or shall be deemed to exist (i) as long as Agent, in good faith,
shall have commenced to cure such default and shall be prosecuting the same to
completion with reasonable diligence, within the above-referenced time period
subject to any force majeure that exists at or during Agent’s cure periods, or
(ii) if possession of the Premises is required in order to cure such
default, or if such default is not susceptible of being cured by Agent, as long
as Agent, in good faith, shall have notified Tenant within ten (10) business
days of receiving Tenant’s notice to Agent of Landlord’s default that Agent
intends to institute proceedings under the Loan Documents, and, thereafter, as
long as such proceedings shall have been promptly instituted and shall be
prosecuted with all reasonable diligence. 
In the event of the termination of the Lease by reason of any bankruptcy
by Landlord, upon Agent’s written request, given within thirty (30) days after

 

3

 

any such termination,
Tenant, within fifteen (15) days after receipt of such request, shall execute
and deliver to Agent or its designee or nominee a new lease of the Premises for
the remainder of the term of the Lease upon all of the terms, covenants and
conditions of the Lease.  Neither Agent
nor its designee or nominee shall become liable under the Lease unless and
until Agent or its designee or nominee becomes, and then only with respect to
periods in which Agent or its designee or nominee remains, the owner of the
Premises.  In no event shall Agent or
Lenders have any personal liability as successor to Landlord and Tenant shall
look only to the estate and property of Agent or Lenders in the Premises and
the proceeds of any sale of the Premises or any part thereof for the
satisfaction of Tenant’s remedies for the collection of a judgment (or other
judicial process) requiring the payment of money in the event of any default by
Agent as Landlord under the Lease, and no other property or assets of Agent or
Lenders shall be subject to levy, execution or other enforcement procedure for
the satisfaction of Tenant’s remedies under or with respect to the Lease.  Agent shall, subject to the last grammatical
paragraph of paragraph 4 hereof, have the right, without Tenant’s consent,
to foreclose the Mortgages or to accept a deed in lieu of foreclosure or to
exercise any other remedies under the Loan Documents.

 

6.             Tenant agrees that,
following delivery of written notice from Agent to Tenant designating an
account into which all payments of rent are thereafter to be made (which notice
shall include appropriate wire and mailing instructions), Tenant shall
thereafter make all payments of rent due under the Lease (including, without
limitation, base rent, amounts due for operating expenses and real estate taxes
and, where applicable, rent due as a percentage of sales receipts) and all
other charges and sums payable by Tenant under the Lease in accordance with
such notice, unless and until Tenant receives written instructions from Agent
to do otherwise.  Agent shall apply such
rents and other payments it receives in accordance with the Loan Documents and,
upon the repayment of the indebtedness evidenced by the Loan Documents, shall
instruct Tenant to make future payments of rent as directed by Landlord.  Any payments due under the Lease which are
made by Tenant to Agent hereunder shall be deemed to satisfy Tenant’s
obligations to Landlord under the Lease. 
In the event of any conflict between the provisions of this paragraph 6
and the terms and provisions of the Lease, the provisions of this paragraph 6
shall govern and control.

 

7.             Tenant has no
knowledge of any prior assignment or pledge of the rents accruing under the
Lease by Landlord.  Tenant hereby
acknowledges the making of the Assignments from Landlord to Agent in connection
with the Loans.  Tenant acknowledges
that the interest of the Landlord under the Lease is to be assigned to Agent
solely as security for the purposes specified in the Assignments, and Agent
shall have no duty, liability or obligation whatsoever under the Lease or any
extension or renewal thereof, either by virtue of the Assignments or by any
subsequent receipt or collection of rents thereunder, unless Agent shall
specifically undertake such liability in writing.

 

8.             If Tenant is a
corporation, each individual executing this Agreement on behalf of said
corporation represents and warrants that s/he is duly authorized to execute and
deliver this Agreement on behalf of said corporation, in accordance with a duly
adopted resolution of the Board of Directors of said corporation

 

4

 

or in accordance with the
by-laws of said corporation, and that this Agreement is binding upon said
corporation in accordance with its terms. 
If Tenant is a partnership or limited liability company, each individual
executing this Agreement on behalf of said partnership or limited liability
company represents and warrants that s/he is duly authorized to execute and
deliver this Agreement on behalf of said partnership or limited liability
company in accordance with the partnership agreement for the partnership or
operating agreement for the limited liability company.

 

9.             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 recognized commercial courier service providing for a
receipt, addressed to Tenant or Agent, as the case may be, at the following
addresses:

 

	
   

  	
  If to Tenant:

  
	
   

  	
   

  
	
   

  	
  [To be added]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attention:

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attention:

  
	
   

  	
   

  
	
   

  	
  If to Agent:

  
	
   

  	
   

  
	
   

  	
  GMAC Commercial
  Mortgage Corporation

  
	
   

  	
  100 South Wacker
  Drive, Suite 400

  
	
   

  	
  Chicago,
  Illinois 60606

  
	
   

  	
  Attention: Vacys
  R. Garbonkus

  
	
   

  	
   

  
	
   

  	
  with copies to:

  
	
   

  	
   

  
	
   

  	
  GMAC Commercial
  Mortgage Corporation

  
	
   

  	
  200 Witmer Road

  
	
   

  	
  Horsham,
  Pennsylvania 19044

  
	
   

  	
  Attention:
  General Counsel

  
				

 

5

 

	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
  Paul, Weiss, Rifkind,
  Wharton & Garrison LLP

  
	
   

  	
  1285 Avenue of
  the Americas

  
	
   

  	
  New York, New
  York 10019-6064

  
	
   

  	
  Attention:
  Harris B. Freidus, Esq.

  
	
   

  	
   

  
	
   

  	
  If to Landlord:

  
	
   

  	
   

  
	
   

  	
  [to be added]

  

 

10.           The term “Agent” or
“Lenders” as used herein includes any successors or assigns thereof, including
without limitation, any co-lender at the time of or after the making of the
Loans, any purchaser at a foreclosure sale and any transferee pursuant to a
deed in lieu of foreclosure, and their successors and assigns, and the term
“Landlord” or  “Tenant” as used herein
includes any successor and assign of the named Landlord or Tenant, as
applicable, herein.

 

11.           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.

 

12.           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.

 

13.           This Agreement shall be
construed in accordance with the laws of the State where the Premises is
located without regard to conflict of law principles.

 

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

 

[signature page follows]

 

6

 

WITNESS the execution
hereof as of the date first above written.

 

	
   

  	
  GMAC COMMERCIAL
  MORTGAGE CORPORATION,

  
	
   

  	
  a California corporation,
  as Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [TENANT]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

The undersigned Landlord
hereby consents to the foregoing Agreement and confirms the facts stated in the
foregoing Agreement.

 

	
   

  	
  [

  	
   

  	
  ]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

 

ACKNOWLEDGMENT FOR
AGENT

 

	
  STATE OF
                                   

  	
  )

  
	
   

  	
  )  ss.:

  
	
  COUNTY OF
                  

  	
  )

  

 

On the
     day of
                    ,
        , before me, the undersigned,
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.

 

	
   

  	
   

  
	
   

  	
  Signature
  and Office of individual taking acknowledgment

  

 

ACKNOWLEDGMENT FOR TENANT

 

	
  STATE OF NEW YORK

  	
  )

  
	
   

  	
  )  ss.:

  
	
  COUNTY OF 
                  

  	
  )

  

 

On the
     day of
                    ,
        , before me, the undersigned,
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.

 

	
   

  	
   

  
	
   

  	
  Signature
  and Office of individual taking acknowledgment

  

 

 

ACKNOWLEDGMENT FOR
LANDLORD

 

	
  STATE OF NEW YORK

  	
  )

  
	
   

  	
  )  ss.:

  
	
  COUNTY OF                  

  	
  )

  

 

On the
     day of
                    ,
      , before me, the undersigned, 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.

 

 

	
   

  	
   

  
	
   

  	
  Signature
  and Office of individual taking acknowledgment

  

 

9

 

EXHIBIT A

 

The Premises

 

 

10

 

Exhibit A

 

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 or place of
BEGINNING.

 

Being the property
located at and known as Block 1012, Lots 1, 5, 8, 14, 53, 59, 61, 62, 63 and
part of 15 on the Tax Assessment Map of the County of New York.

 

A - 1

 

Exhibit I

 

Architect’s Certificate

 

 

I - 1

 

ARCHITECTS’ STATEMENT

 

[Architect’s Letterhead]

 

	
   

  	
                                 ,
  200

  
	
   

  	
   

  
	
   

  	
  Application for Payment
  

  

 

GMAC Commercial Mortgage
Corporation, as Agent

100 South Wacker Drive, Suite 400

Chicago, Illinois  60606

 

Ladies and Gentlemen:

 

The undersigned (“Architect”)
understands that GMAC Commercial Mortgage Corporation, as agent (including any
successor thereto, “Agent”)
for itself and any other co-lenders as may exist from time to time
(collectively, “Lenders”)
has made or will make loans (the “Loans”) to The New York Times Building LLC (“Borrower”), which
Loans will be used to finance construction by Borrower of the improvements (the
“Improvements”) on
and adjacent to the premises more particularly described in Exhibit A hereto (the
“Land”; and together
with the Improvements, the “Project”).  The
Loans will be advanced pursuant to that certain Building Loan Agreement dated
as of  June    ,
2004 (the “Building Loan
Agreement”) by and between Borrower, New York State Development
Corporation d/b/a Empire State Corporation, as initial agent (“Initial Agent”) for
itself and for the benefit of Lenders, and Agent, for itself and on behalf of
Lenders, and that certain Project Loan Agreement dated as of
June     , 2004 (the “Project Loan Agreement”; collectively with
the Building Loan Agreement, the “Loan Agreements”) by and between Borrower, Initial
Agent, for itself and for the benefit of Lenders, and Agent, for itself and on
behalf of Lenders.  Capitalized terms
not defined herein shall have the meanings ascribed to them in the Architect’s
Agreement (as defined below).

 

Knowing that Agent and
Lenders will rely on this Architect’s Statement in advancing proceeds of the
Loans, Architect, for itself and on behalf of RPBW (as hereinafter defined),
based upon its knowledge, information and belief, and upon its performance and
services (including RPBW and Architect’s respective periodic on site
observations of construction) all in accordance with the Architect’s Agreement
(as hereinafter defined) and subject to generally accepted standards of
practice, hereby states to Agent and Lenders as follows as of the date hereof:

 

1.             Architects have been
engaged to act as architects for the Project and such engagement is evidenced
by that certain Contract for Architectural Services dated as of October 3,
2001 among FC 41st Street Associates, LLC (“FC 41st Street”), 

 

 

NYT Real Estate Company
LLC (“NYTC Member”),
RPBW Piano Building Workshops, S.E.L.A.F.A. (“RPBW”; together with Architect, “Architects”)) and
Architect, as assigned by FC 41st Street and NYTC Member to Borrower
in accordance with Section 14.3 of the Architect’s Agreement (the “Architect’s Agreement”).  No amendments or supplements to the
Architect’s Agreement have been made except as set forth on Exhibit B attached
hereto.

 

2.             Architects last
observed the Project on
              ,
200    and
                              ,
200  , respectively, and each found the status of the Project on such
date and the progress made on the Project [since their last Certificate dated                ,
200  ] to be in substantial accordance with the Project Schedule.

 

3.             Architects have been
advised that, pursuant to that certain memorandum of the New York State Urban
Development Corporation d/b/a Empire State Development Corporation (“ESDC”) concerning the
42nd Street Development Project, dated November 14, 2001 (the “Override Resolution”),
ESDC confirmed that the Project is not required to comply with the requirements
of the New York City Zoning Resolution. 
Architects have been further advised that the Project is required to
comply with the Site 8 South Declaration of Design, Use and Operation by
ESDC, 42nd St. Development Project, Inc., dated as of December 12, 2001
(the “DUO Declaration”)
and is required to comply with all other “Legal Requirements” as defined in the
ground lease for the site of the Project (the “Lease”). 
In addition, Architects have been informed that Design Development Plans
and Final Plans and Specifications, as defined in the Lease, are required to be
approved by the ESDC before construction of the Project may begin and that such
approvals have been received.

 

4.             The Construction
Documents in effect as of the date hereof have been approved by all applicable
governmental authorities having jurisdiction over the Project and comply with
building codes and other similar legal requirements.  Supplementing the foregoing, the Construction Documents comply
with the “Design Development Plans” and “Final Plans and Specifications” that
have been approved by ESDC.  Architects
have made no amendments, modifications, or changes to the Construction
Documents other than those with Agent’s prior written approval or with respect
to which Borrower has informed Architects that Agent’s approval is not required
since the last Architect’s Certificate dated                       ,
200  , other than as described on Exhibit C attached hereto.

 

5.             All work observed to
date has been done generally in accordance with the Construction Documents.

 

6.             Upon completion of
the Project in accordance with the Construction Documents, the Project will be
in compliance in all material respects with currently applicable building codes
and other similar legal requirements (including, without limitation, the
Americans with Disabilities Act) and the Project shall be entitled to
certificates of occupancy by all applicable governmental authorities and may be
lawfully occupied and used for the purposes for which it was designed.

 

2

 

7.             All material permits,
licenses, and other approvals from governmental authorities required to
complete construction of the Project have been validly issued by the
appropriate governmental authorities (or are capable of being obtained within
time periods consistent with the projected completion dates set forth on the
Project Schedule) and are in full force and effect, and subject to the limited
scope of services provided for in the Architect’s Agreement, to Architects’
knowledge there is no violation of any of the provisions thereof or of any
legal requirements.

 

8.             The Architects have
no knowledge of any petitions, actions or proceedings pending or threatened to
revoke, rescind, alter or declare invalid any legal requirements, permits,
licenses or approvals of any governmental authorities for or relating to the
Project.

 

9.             The DUO Declaration
permits, as of right, the construction of the Project in accordance with the
Construction Documents and, upon completion of construction, the operation, use
and occupancy thereof contemplated by the Construction Documents.

 

10.           Architects have
received a survey from the Borrower and, to the extent shown on such survey,
are familiar with the locations of all easements, restrictions, rights-of-way,
subsurface rights and the like in force relating to the Project, and the
Construction Documents have been so prepared that the improvements will not
encroach over, across or upon any such easements, restrictions, rights-of-way
or subsurface rights and the like to the extent shown on such survey, except as
expressly permitted by the holders of title to such easements, rights-of-way or
subsurface rights pursuant to written instruments, agreements and permits.

 

11.           The Architect’s
Agreement is in full force and effect, Architects  are not in default thereunder and to Architects’ knowledge,
Borrower is not in default of any of Borrower’s obligations thereunder.

 

12.           The Project has not
been suspended, abandoned or terminated.

 

13.           As of the date hereof,
the Fee has not been subject to any increase and there are no approved
Additional Services for the Architects other than, in each case, those referenced
on Exhibit B attached
hereto or heretofore disclosed on a prior Architects’ Certificate to Agent.

 

14.           As the date hereof,
Architect acknowledges that Architects have been paid 
$                                    
for Basic Services, $
                            
for Additional Services and $
                      
for Reimbursable Expenses.

 

15.           The provisions set
forth in this Certificate shall be binding upon Architects and Architects’
successors and shall inure to the benefit of Agent and Lenders but not to any
other Person and accordingly no other Person shall be entitled to rely thereon.

 

3

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FOX & FOWLE
  ARCHITECTS, PC, for

  itself and on behalf of RPBW

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

4

 

Exhibit A

 

Description of Premises

 

 

 

Exhibit A

 

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 or place of
BEGINNING.

 

Being the property
located at and known as Block 1012, Lots 1, 5, 8, 14, 53, 59, 61, 62, 63 and
part of 15 on the Tax Assessment Map of the County of New York.

 

A - 1

 

Exhibit B

 

Amendments to the
Architect’s Agreement and Fees for Services

 

 

 

Exhibit C

 

Amendments to the
Construction Documents

 

 

 

Exhibit J

 

General Contractor’s
Certificate

 

 

J – 1

 

GENERAL
CONTRACTOR’S CERTIFICATE

 

[General Contractor’s
Letterhead]

 

                                      ,
200  

 

Application for Payment
No.             

 

GMAC Commercial Mortgage
Corporation, as Agent

100 South Wacker Drive, Suite 400

Chicago, Illinois 60606

 

Ladies and Gentlemen:

 

The undersigned (“General Contractor”)
understands that GMAC Commercial Mortgage Corporation, as agent (“Agent”) for itself
and any other co-lenders as may exist from time to time (collectively, “Lenders”) has made
or will make loans (the “Loans”) to The New York Times Building LLC (“Borrower”), which
Loans will be used to finance construction by Borrower of the improvements (the
“Improvements”) on
and adjacent to the premises more particularly described in Exhibit A hereto (the
“Land”; and together
with the Improvements, the “Project”).  The
Loans will be advanced pursuant to that certain Building Loan Agreement dated
as of June     , 2004 (the “Building Loan Agreement”) by and between
Borrower, New York State Development Corporation d/b/a Empire State Corporation
as initial agent (“Initial Agent”),
for itself and for the benefit of Lenders, and Agent, for itself and on behalf
of Lenders, and that certain Project Loan Agreement dated as of
June     , 2004 (the “Project Loan Agreement”; collectively with
the Building Loan Agreement, the “Loan Agreements”) by and between Borrower, Initial
Agent, for itself and for the benefit of Lenders, and Agent, for itself and on
behalf of Lenders.  Capitalized terms
not defined herein shall have the meanings ascribed to them in the Guaranteed
Maximum Price Contract defined below.

 

General Contractor
certifies to Agent and Lenders as follows:

 

1.             General Contractor
has been engaged to act as the construction manager for the Project and such
engagement is evidenced by that certain Construction Management Agreement
between Borrower and General Contractor dated as of January 22, 2004 (the “Guaranteed Maximum Price Contract”).  Except for Change

 

 

Orders, Field Directives
and Emergency Change Orders (collectively, “Scope Changes”) no amendments or supplements to the
Guaranteed Maximum Price Contract have been made without the prior written
approval of Agent.  The Guaranteed
Maximum Price Contract constitutes the only agreement (other than Scope Changes)
between General Contractor and Borrower with respect to the matters and
interests described therein.

 

2.             General Contractor
has reviewed the Drawings and Specifications prepared for the Project and
specified in the Guaranteed Maximum Price Contract.  There have been no Scope Changes since the date of the last
General Contractor’s Certificate dated
              ,
200  , except as set forth in the Potential Change Order Log attached
as Schedule 1
hereto.

 

3.             The Application and
Certificate of Payment (AIA Document No. G702), dated
                                  ,
200   (the “Current Application for Payment”) which General
Contractor understands is to be included as an item in Borrower’s requisition
to Agent, is in full compliance with the terms of the Guaranteed Maximum Price
Contract.

 

4.             Schedule 2 hereto is a list of each
Major Subcontractor (as defined in Exhibit B).

 

5.             The Work performed to
date has been performed in accordance with the Guaranteed Maximum Price
Contract and the other Contract Documents in effect on the date hereof.  To the best of General Contractor’s
knowledge, except as set forth in paragraph 2 above, no event has occurred
and there are no conditions (including without limitation, any concealed
conditions, design defects or deficiencies), or changes in the Construction
Documents that would entitle General Contractor to an increase in the GMP,
other than (a) as set forth on Schedule 1 hereto and (b) increases that General
Contractor is not yet obligated to make a claim for as of the date hereof in
accordance with the terms of the Guaranteed Maximum Price Contract.  As of the date hereof, the Guaranteed
Maximum Price is set forth in the Current Application for Payment.

 

6.             As of the date
hereof, the required dates under the Guaranteed Maximum Price Contract for
Substantial Completion and Final Completion for each portion of the Project are
set forth in the most recent schedule attached as Schedule 3 hereto.  The General Contractor does not know of any
facts or circumstances which would entitle General Contractor to an extension
of any such dates; and General Contractor has not made any claim for any such
extension, other than (a) as set forth on Schedule 1 hereto and (b) claims that General
Contractor is not yet obligated to make as of the date hereof in accordance
with the terms of the Guaranteed Maximum Price Contract.

 

7.             Except as shown on Schedule 4, all
Governmental Approvals (as defined in Exhibit B) required to have been
obtained by General Contractor, and, to the best of General Contractor’s
knowledge, all other Governmental Approvals from the City of New York,
including its Department of Transportation, required to have been obtained by
Borrower, with respect to the construction of the Project have been issued, are
in full

 

2

 

force and effect and are
not subject to any legal proceedings or unsatisfied conditions.  With respect to any such Governmental
Approvals not yet required to be obtained, (i) each such Governmental
Approval is of a type that is routinely granted upon application therefor and
(ii) General Contractor knows of no facts or circumstances which indicate
that any such Governmental Approval will not be timely obtainable without
material difficulty, expense or delay prior to the time that it is required.

 

8.             All insurance
required from the General Contractor (if any) under the Guaranteed Maximum
Price Contract (i) has been obtained and (ii) is in full force and effect.

 

9.             Except for funds
remaining in the Trust Account established pursuant to Article 18.6.1 of
the Guaranteed Maximum Price Contract, General Contractor has paid to its
direct subcontractors and suppliers in full all of its obligations with respect
to all labor and/or materials and rented equipment, appliances or tools related
to the construction of the Project supplied through and including the period
covered by the Application and Certificate of Payment (AIA Document No. G702)
included in Borrower’s second most recent requisition (the “Prior Application for Payment”)
and all such subcontractors have paid their direct subcontractors and suppliers
in full for and with respect to all labor and/or materials and rented
equipment, appliances or tools related to the construction of the Project
supplied through and including the period covered by the Prior Application for
Payment properly due to subcontractors and suppliers in accordance with the
Guaranteed Maximum Price Contract.

 

10.           There are no unbonded
liens in favor of General Contractor and/or any subcontractor hired by General
Contractor who has performed work, for the work so performed, and/or who has
supplied labor, goods and/or materials, for the labor, goods and/or materials
so supplied, except for such work or labor, goods and/or materials for which
payment is requested.

 

11.           The Guaranteed Maximum
Price Contract is in full force and effect. 
Neither General Contractor nor Borrower is in default of any of its
respective obligations to the other as of the date hereof.  There is no existing circumstance or event
which, but for the lapse of time and/or the giving of notice, would constitute a
default by either General Contractor or Borrower or would give either such
party the right to terminate the Guaranteed Maximum Price Contract.  General Contractor has not sent or received
any notice of default or any notice for the purpose of terminating the
Guaranteed Maximum Price Contract.

 

12.           There are no changes in
the condition of the General Contractor which would be likely to materially
adversely affect its ability to perform its obligations under the Guaranteed
Maximum Price Contract.

 

13.           The Project has not
been suspended, abandoned or terminated.

 

14.           All Work performed to
date has been performed only by subcontractors (not including suppliers)
subject to collective bargaining agreements with

 

3

 

unions affiliated with
the Building and Construction Trades Council of Greater New York.

 

15.           General Contractor is
in compliance with all of its obligations under Section 2.4 of the
Guaranteed Maximum Price Contract.

 

16.           The provisions set
forth in this Certificate shall be binding upon General Contractor and General
Contractor’s successors and assigns and shall inure to the benefit of Agent and
Lenders and their successors and assigns.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  AMEC CONSTRUCTION
  MANAGEMENT, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

4

Exhibit A

 

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 or place of
BEGINNING.

 

Being the property
located at and known as Block 1012, Lots 1, 5, 8, 14, 53, 59, 61, 62, 63 and
part of 15 on the Tax Assessment Map of the County of New York.

 

 

Exhibit B

 

Definitions

 

“Governmental Approvals” means all approvals,
consents, waivers, orders, acknowledgments, authorizations, permits and
licenses required under applicable Legal Requirements to be obtained from any
government (or any political subdivisions thereof), court, agency, authority,
board (including, without limitation, any environmental protection, planning or
zoning board), bureau, commission, department, office or instrumentality of any
nature whatsoever of any governmental or quasi-governmental unit having jurisdiction
over Borrower, the Project or any part thereof (or the construction,
development, use, occupancy, management, ownership or operation of the Project
or any part thereof) or Agent or any Lender, as applicable.

 

“Major Subcontractor” means any subcontractor
(vis-a-vis Owner) under the Guaranteed Maximum Price Contract (or any direct or
indirect subcontractor thereof) who is supplying labor, goods, materials or
services in connection with the Project, where, at the time of determination,
the aggregate contract price for such labor, goods, materials or services
(including fees) equals or exceeds $500,000, whether pursuant to one contract
or agreement or multiple contracts or agreements, after taking into account all
change orders.

 

 

Schedule 1

 

Potential Change Order Log

 

 

Schedule 2

 

Major Subcontractors

 

 

Schedule 3

 

Current Schedule

 

 

Schedule 4

 

Governmental Approvals

 

 

Exhibit K

 

Form of Estoppel
Certificate

 

K-1

 

Estoppel Certificate

 

                              ,
200  

 

GMAC Commercial Mortgage
Corporation, as Agent

100 South Wacker Drive,
Suite 400

Chicago, Illinois 60606

 

Re:                               New
York Times Building, New York, New York

 

The undersigned
understands that THE NEW YORK TIMES BUILDING LLC (“Borrower”), NEW YORK STATE URBAN DEVELOPMENT
CORPORATION, D/B/A EMPIRE STATE DEVELOPMENT CORPORATION, as initial agent (“Initial Agent”) for
itself and for the benefit of the lenders as may exist from time to time (such
lenders collectively, including any successors and assigns, “Lenders” and each
individually a “Lender”)
and GMAC COMMERCIAL MORTGAGE CORPORATION, as agent (including as successor to
Initial Agent) (including any of its successors and assigns as agent, “Agent”) for itself
and on behalf of Lenders, have entered into that certain Building Loan
Agreement dated as of
June         , 2004 and that
certain Project Loan Agreement dated as of
June         , 2004, and that
Agent is requiring, and will rely upon, this certificate from the
undersigned.  The undersigned hereby
certifies as follows:

 

1.                                       The
undersigned is the tenant under the lease described in Exhibit A annexed hereto, covering the space
in the building known as the New York Times Building, New York, New York (the “Property”) described
on Exhibit A (the “Premises”), which
lease has not been amended or supplemented (orally or in writing) except as set
forth on Exhibit A (as
so amended or supplemented, the “Lease”). [The Lease is guarantied by the guaranty set
forth on Exhibit A
(the “Guaranty”)].  The Lease [and the Guaranty] contain[s] all
of the understandings and agreements between the landlord thereunder (“Landlord”) and the
undersigned with respect to the Premises.

 

2.                                       Except
as indicated on Exhibit A,
the undersigned has not assigned the Lease, sublet all or any portion of the Premises
or pledged its interest thereunder.  All
conditions to the Lease to be performed by Landlord as of the date hereof and
necessary to the enforceability of the Lease have been satisfied.

 

3.                                       The
Lease [and the Guaranty] [is][are] in full force and effect.  As of the date hereof (i) the undersigned
has neither sent nor received any notice of default under the Lease and, to the
best of the undersigned’s knowledge, there are no defaults under the Lease by
either Landlord or the undersigned [or under the Guaranty by the guarantor
thereunder], nor are there any conditions or events existing which, with or
without notice or the lapse of time, or both, could constitute a default under
the Lease [or the Guaranty], and (ii) to the best of the undersigned’s knowledge,
the undersigned has no charge, lien, claim or offsets under the Lease against
Landlord or the rent or other amounts payable thereunder.  The undersigned has not advanced any funds
for or on behalf of Landlord for which the undersigned has a right to deduct
from or offset against future rent payments.

 

 

4.                                       The
amount of the security deposit to be held under the Lease is set forth on Exhibit A.

 

5.                                       No
notice to terminate the Lease [or the Guaranty] has been given or received by
the undersigned.

 

6.                                       [Neither]
[T]he undersigned [nor the guarantor under the Guaranty] is [not] the subject,
whether voluntary or otherwise, of any bankruptcy, insolvency or similar
proceeding in any federal, state or other court or jurisdiction.

 

7.                                       Attached
hereto as Exhibit B
is a true and correct copy of the Lease [and the Guaranty] and all the
amendments, modifications and supplements thereto.

 

8.                                       The
undersigned hereby certifies to Agent the truth and accuracy hereof and
acknowledges that Agent is relying on the terms hereof in consummating the
transactions described above.

 

9.                                       This
certificate shall be binding upon the undersigned and its successors and
assigns and shall inure to the benefit of and be enforceable by Agent and its
successors and assigns, including any purchaser at a foreclosure sale or any
person receiving a deed in lieu of foreclosure.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [

  	
   

  	
  ]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

 

EXHIBIT A

 

1.                                       Description
of Lease and of each amendment thereto [and any Guaranty thereof] by title, date
and parties:

 

2.                                       Subleases,
assignments or pledges:

 

3.                                       Security
deposit:

 

 

EXHIBIT B

 

[attached behind]

 

 

If the Lease is guaranteed, the following
must be completed by all lease guarantors:

 

JOINDER

 

The undersigned Guarantor
of the Lease hereby joins in this tenant estoppel certificate to confirm that
the undersigned’s Guaranty of the Lease remains in full force and effect, and
is hereby reaffirmed and ratified.  The
undersigned Guarantor represents and warrants that all representations and warranties
made in such Guaranty are true and correct in all material respects as of the
date hereof.  The undersigned further
confirms that the undersigned has no claim of offset, defense or counterclaim
to the obligations of the undersigned under such Guaranty and have no defenses
to enforcement of the Guaranty or the Lease in accordance with its terms.

 

	
  [Date]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GUARANTOR:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

 

Exhibit L

 

Form of Lien Waiver

 

L-1

 

MECHANICS
LIEN WAIVER

 

	
  Contractor: 

  	
   

  	
  Date: 

  
	
  Trade:

  	
   

  	
   

  
	
  Date of Trade Contract:

  	
   

  	
   

  
	
  Project:       New
  York Times

  	
   

  	
  Contract Price:  $

  
	
   

  	
   

  	
  Net Extras and
  Deductions:  $

  
	
  Construction Manager:

  	
   

  	
  Adjusted Contract
  Price:  $

  
	
  AMEC Construction
  Management, Inc.

  	
   

  	
  Amount Previously
  Paid:  $

  
	
   

  	
   

  	
  Balance Due:  $

  
	
  Owner:   The
  New York Times Building, LLC

  	
   

  	
   

  
	
  Date of Construction
  Management Agreement: January 22, 2004

  	
   

  	
   

  
	
  Requisition No.
            , dated
              ,
  200    

  	
   

  	
   

  

 

THE UNDERSIGNED (1)
acknowledges receipt of the amount set forth above as Amount Previously Paid as
payments received to date, (2) conditioned upon the receipt of the above
Balance Due, waives and releases any lien or claim of lien which it may now or
hereafter have upon the land and improvements described above in the project
description for all work labor, services, materials and equipment supplied by
the Contractor for which amounts have been requisitioned pursuant to the
above-referenced Requisition, (3) that the amount of payments received to the
date of this waiver represents the current amount due in accordance with our
contract and work completed, and (4) warrants that it has not and will not
assign any claims for payment or right to perfect a lien against such land and
improvements and warrants that it has the right to execute this waiver and
release.

 

THE UNDERSIGNED further
warrants that (1) all workmen employed by it or its subcontractors upon this
Project have been fully paid to the date hereof, (2) all materialmen from whom
the undersigned or its subcontractors have purchased materials used in the
Project have been paid for materials delivered on or prior to the date hereof,
(3) none of such workmen and materialmen has any claim or demand or right of
lien against the land and improvements described above, and (4) stipulates that
he is an authorized officer with full power to execute this waiver of lien.

 

THE UNDERSIGNED agrees
that the owner of the Project,
                                             ,
and any other lender and any title insurer may rely upon this waiver.

 

WITNESS the signature and
seal of the undersigned as of this
           day of
                                  ,
200   .

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STATE OF

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  COUNTY OF

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
  Sworn to before me this

  	
   

  	
   

  
	
          
  day
  of                         ,
  200    .

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Notary
  Public

  	
   

  	
   

  
										

 

 

Exhibit M

 

Form of Assignment of
Interest Rate Cap

 

M-1

 

FORM
OF

 

ASSIGNMENT
OF INTEREST RATE CAP

 

 

between

 

THE NEW YORK TIMES
BUILDING LLC

having an address at

One MetroTech Center North,

Brooklyn, New York 11201

(Assignor)

 

and

 

GMAC COMMERCIAL MORTGAGE
CORPORATION

having an address at

100 South Wacker Drive, Suite 400

Chicago, Illinois 60606,

as agent

(Agent)

 

Dated as of
                        ,
200  

 

 

TABLE
OF CONTENTS

 

	
  SECTION 1.

  	
  Assignment

  	
   

  
	
  SECTION 2.

  	
  Representations and
  Warranties

  	
   

  
	
  SECTION 3.

  	
  Covenants

  	
   

  
	
  SECTION 4.

  	
  Performance of
  Assignor’s Obligations.

  	
   

  
	
  SECTION 5.

  	
  Notice and Instruction
  to Counterparty

  	
   

  
	
  SECTION 6.

  	
  Remedies

  	
   

  
	
  SECTION 7.

  	
  Indemnification

  	
   

  
	
  SECTION 8.

  	
  Notices.

  	
   

  
	
  SECTION 9.

  	
  Filing of Financing Statements;
  Appointment of Attorney-in-Fact

  	
   

  
	
  SECTION 10.

  	
  Successors and Assigns
  Included in Parties

  	
   

  
	
  SECTION 11.

  	
  Headings

  	
   

  
	
  SECTION 12.

  	
  Invalid Provisions to
  Affect No Others

  	
   

  
	
  SECTION 13.

  	
  Number and Gender

  	
   

  
	
  SECTION 14.

  	
  Computation of Time
  Periods

  	
   

  
	
  SECTION 15.

  	
  Governing Law

  	
   

  
	
  SECTION 16.

  	
  Amendments

  	
   

  
	
  SECTION 17.

  	
  Counterparts

  	
   

  
	
  SECTION 18.

  	
  Time of the Essence

  	
   

  
	
  SECTION 19.

  	
  Survival

  	
   

  
	
  SECTION 20.

  	
  Exculpation

  	
   

  
	
  SECTION 21.

  	
  Further Assurances

  	
   

  
	
  SECTION 22.

  	
  Assignment

  	
   

  
	
  SECTION 23.

  	
  Entire Agreement

  	
   

  
	
  SECTION 24.

  	
  Statute of Limitations

  	
   

  
	
  SECTION 25.

  	
  Remedies of Assignor

  	
   

  
	
  SECTION 26.

  	
  Obligations Not
  Impaired

  	
   

  
	
  SECTION 27.

  	
  No Waiver

  	
   

  
	
  SECTION 28.

  	
  Reinstatement of
  Obligations

  	
   

  
	
  SECTION 29.

  	
  Successive Actions

  	
   

  

 

i

 

PWRW&G

3/31/04

 

FORM
OF

 

ASSIGNMENT
OF INTEREST RATE CAP

 

THIS ASSIGNMENT OF
INTEREST RATE CAP (this “Assignment”), dated as of
                         ,
200  , is made by THE NEW YORK TIMES BUILDING LLC, a New York
limited liability company with an address at One MetroTech Center North,
Brooklyn, New York 11201 (“Assignor”), in favor of GMAC COMMERCIAL MORTGAGE
CORPORATION, a California corporation with an office at 100 South Wacker Drive,
Suite 400, Chicago, Illinois 60606, as agent (including any of its successors
and assigns as agent, “Agent”) for itself and any other co-lenders as may exist
from time to time (collectively, including any successors and assigns, “Lenders” and each
individually, a “Lender”).

 

W I T N E S S E T H:

 

WHEREAS, Assignor,
Initial Agent (as defined in the Loan Agreements (as hereinafter defined)), for
itself and for the benefit of Lenders, and Agent, for itself and on behalf of
Lenders, entered into that certain Building Loan Agreement, dated as of
                             ,
200   (as the same may be revised, restated, amended or modified from
time to time, the “Building Loan
Agreement”) and that certain Project Loan Agreement dated as of
                            ,
200    (as the same may be revised, restated, amended or
modified from time to time, the “Project Loan Agreement”; the Building Loan Agreement
and the Project Loan Agreement collectively, the “Loan Agreements”; capitalized terms used
herein but not defined herein shall have the respective meanings specified in
the Loan Agreements), pursuant to which the Lenders are advancing loans in the
original maximum aggregate amount of $320,000,000.00 (the “Loan”) to Assignor;

 

WHEREAS, Initial Agent
has satisfied all of its obligations under the Building Loan Documents and the
Project Loan Documents and has resigned as initial agent under the Building
Loan Documents and the Project Loan Documents and in confirmation of the
foregoing, has, among other things, assigned all of its rights as initial agent
to Agent, and Agent has assumed all of Initial Agent’s Obligations as initial
agent;

 

WHEREAS, the Loan
Agreements require that, under certain circumstances, Assignor purchase an
interest rate cap and execute and deliver this Assignment as further security
for the payment of the Indebtedness and the performance of the Obligations; and

 

WHEREAS, that certain
ISDA Confirmation (the “Confirmation”), dated
                        
      , 200   between Assignor and
                                            
(“Counterparty”),
together with that certain ISDA Master Master Agreement (Multicurrency Cross
Border) governing the Confirmation (the “Master Agreement”; the Confirmation, together with the
Master Agreement, the “Interest Rate Cap”), which Interest Rate Cap is attached
hereto as Exhibit A, is [the Initial Interest Rate Cap][a Future Interest Rate
Cap] referred to in the Loan Agreement.

 

 

NOW, THEREFORE, in
consideration of the foregoing and other benefits accruing to Assignor, the
receipt and sufficiency of which are hereby acknowledged, Assignor and Agent,
for itself and on behalf of Lenders, hereby agree as follows:

 

SECTION 1.                                Assignment.  As security for the due and punctual payment
in full of the Indebtedness and the performance of the Obligations, Assignor
hereby assigns, grants, delivers and transfers to Agent, and grants to Agent a
security interest in, all of Assignor’s right, title and interest, whether now
owned or hereafter acquired, now existing or hereafter arising, wherever
located, in, to and under (i) the Interest Rate Cap; (ii) all rights to receive
payments under, and any payment intangibles due or to become due to Assignor in
respect of, the Interest Rate Cap or arising thereunder whether as contractual
Obligations or otherwise (“Payments”); (iii) all of
Assignor’s claims, rights, powers, privileges, authority, options, security
interests, liens and remedies, if any, under or arising out of the Interest
Rate Cap; and (iv) any and all accessions and additions to, substitutions for
and replacements of products and proceeds (including non-cash proceeds) of any
of the foregoing (the property and interests described in the foregoing clauses
(i) through (iv) being referred to herein collectively as the “Collateral”).

 

SECTION 2.                                Representations
and Warranties.  Assignor represents
and warrants that (i) it is a limited liability company duly organized, validly
existing and in good standing under the laws of the State of New York; (ii) it
has the power, authority and legal right to purchase and own the Interest Rate
Cap and to execute, deliver and perform its obligations under this Assignment
including, without limitation, to assign and grant a security interest in the
Collateral; (iii) this Assignment and the Interest Rate Cap have been duly
authorized, executed and delivered by all necessary parties on behalf of Assignor;
(iv) the copy of the Interest Rate Cap attached as Exhibit A hereto is a true and complete
copy thereof, (v) it owns the Collateral free and clear of all liens and claims
of others, (vi) it has not transferred, assigned, granted a security interest
in or otherwise encumbered its interest in and to the Collateral other than in
favor of Agent and Lenders pursuant to this Assignment, (vii) no security
agreement, financing statement or other document is on file or of record in any
public office with respect to the Collateral, other than in favor of Agent and
Lenders pursuant to this Assignment, (viii) the obligation of the Counterparty
under the Interest Rate Cap to make Payments is not subject to any defense or
counterclaim arising from any act or omission of Assignor, any other Borrower
Entity or any Affiliate thereof, (ix) the Interest Rate Cap is in full force
and effect and there exists no default or event of default thereunder and
(x) the exact name and the state of formation of Assignor as set forth in
the Articles of Organization of Assignor are set forth on page 1 hereof and the
place of business (as used in Article 9 of the UCC) and chief executive
office of Assignor is located at the address set forth on page one.

 

SECTION 3.                                Covenants.  Assignor covenants and agrees that (i) it
shall comply with all terms of the Interest Rate Cap, (ii) it shall not waive
any material provision of, or make any material change to, the Interest Rate
Cap and it shall not consent or agree to any act or omission to act on the part
of Counterparty which would

 

2

 

constitute a default
under the Interest Rate Cap, (iii) it shall not tender or accept a surrender or
cancellation of the Interest Rate Cap, (iv) it shall not assign, pledge,
encumber or grant a security interest in any of the Collateral to anyone other
than Agent for the benefit of itself and Lenders, (v) it shall exercise
promptly and diligently each and every right which it may have under the
Interest Rate Cap, (vi) it shall not take or omit to take any action or suffer
or permit any action to be omitted or taken, the taking or omission of which
would result in any right of offset against sums payable under the Interest
Rate Cap, or any defense by Counterparty, to payment, (vii) it shall promptly
deliver a copy of any notice received from Counterparty to Agent and (viii) it
shall deliver to Agent copies of any replacement or substitution of, and any
amendment to, the Interest Rate Cap.

 

SECTION 4.                                Performance
of Assignor’s Obligations.  Subject
to Section 6 hereof, nothing contained herein and no act taken by Agent
hereunder shall obligate or be construed to obligate Agent, vis-à-vis Assignor,
to perform any of the terms, covenants or conditions contained in the Interest
Rate Cap or otherwise to impose any obligation upon Agent with respect to the
Collateral.  This Assignment shall not
operate to place upon Agent any responsibility for the operation, control,
care, management or repair of the Mortgaged Property or for the payment,
performance or observance of any Obligations or any requirement or condition
under the Interest Rate Cap.

 

SECTION 5.                                Notice
and Instruction to Counterparty. 
The Counterparty has executed this Assignment for the purpose of
evidencing its consent hereto.  This
Assignment shall constitute a direction to the Counterparty to make all
payments to be made under or pursuant to the terms of the Interest Rate Cap,
without set-off, defense or counterclaim, to Agent (a) directly to the
account designated on Schedule B hereto, and (b) upon Agent’s written
notice to Counterparty that an Event of Default has occurred, in accordance
with Agent’s written instruction. 
Assignor agrees that payments made by Counterparty pursuant to these
directions shall, to the extent of such payment, satisfy Counterparty’s
obligations to Assignor in respect of the Confirmation and that Counterparty
may rely upon Agent’s written notice without any inquiry into the factual basis
for such notice or any prior notice to or consent from Assignor. Assignor
further acknowledges that its consent is not needed to any termination and
liquidation of the Collateral upon which Agent and Counterparty may agree and
that all proceeds paid in respect thereof are to be paid to Agent. Assignor
releases Counterparty from all liability in connection with Counterparty’s
compliance with Agent’s written instructions or performance in accordance with
this Assignment.

 

SECTION 6.                                Remedies.  Notwithstanding anything to the
contrary contained herein, prior to the occurrence of an Event of Default,
neither Agent nor Lenders shall have the right to assume the Interest Rate
Cap.  During the continuance of an Event
of Default, Agent shall be entitled to all of the rights, remedies, powers and
privileges available to a secured party under the UCC.  Agent may, but shall not be obligated to,
assume all of the obligations of Assignor under the Interest Rate Cap and/or
exercise the rights, benefits and privileges of Assignor with respect to any of
the other

 

3

 

Collateral
and, in such event, Agent shall be entitled to utilize the Collateral in
Assignor’s place and stead, in the name of Assignor or otherwise and/or to take
in its name or in the name of Assignor, or otherwise, such action as Agent may
at any time or from time to time determine to be necessary to cure any default
under the Collateral or to protect the rights of Assignor or Agent or Lenders
thereunder.  In connection with the
foregoing, Agent shall be entitled to take possession of and use all books of
account and financial records of Assignor relating to the Collateral.  The assumption by Agent of the Interest Rate
Cap pursuant to this Section 6 shall be evidenced by a written notice from
Agent to the Counterparty upon which the Counterparty shall be entitled to
rely.  Under no circumstances shall Agent
or any Lender be deemed by any party to have assumed Assignor’s rights and
obligations under the Interest Rate Cap unless and until such written notice is
delivered to the Counterparty in accordance with the foregoing provision.  Assignor hereby agrees to pay all
sums expended by Agent under the authority hereof.  Such amounts shall constitute Reimbursable Costs.

 

SECTION 7.                                Indemnification.  Assignor agrees to indemnify and hold Agent
and/or Lenders harmless from and against any and all losses which Agent and/or
Lenders incur by reason of this Assignment, or by reason of any action
permitted to be taken by Agent hereunder, and against and from any and all
claims and demands whatsoever which may be asserted against Agent and/or
Lenders by reason of any alleged obligation or undertaking on its part to
perform or discharge any of the terms, covenants and conditions contained in
the Interest Rate Cap except to the extent that such Loss resulted from the
gross negligence or willful misconduct of Agent.  The foregoing indemnity shall be subject to the provisions of
Section 7.29 of the Loan Agreements.

 

SECTION 8.                                Notices.

 

Any request, notice, report, demand, approval or other
communication permitted or required by this Assignment to be given or furnished
shall be in writing and shall be deemed given or furnished when addressed to
the party intended to receive the same, at the address of such party as set
forth below, (i) when delivered by overnight nationwide commercial courier
service, one (1) Business Day (determined with reference to the location of the
recipient) after the date of delivery to such courier service, (ii) when
personally delivered, if delivered on a Business Day in the place of receipt
and during normal business hours (otherwise on the next occurring Business Day
in such place of receipt) or (iii) when transmitted by telecopy to the
telecopier number set forth below, to the party intended to receive same if
transmitted on a Business Day in the place of receipt and during normal
business hours (and otherwise on the next occurring Business Day in such place
of receipt) and provided that such transmission is confirmed by duplicate
notice in such other manner as permitted above:

 

4

 

Lenders
or Agent:

 

GMAC Commercial
Mortgage Corporation

100 South Wacker Drive, Suite 400

Chicago, Illinois  60606

Attention:    Vacys R. Garbonkus

Telecopier:  (312) 917-6131

 

with a
copy to:

 

Paul, Weiss,
Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, New York  10019

Attention:  Harris B. Freidus, Esq.

Telecopier:  (212) 492-0064

 

Assignor

 

The New York
Times Building LLC

One MetroTech Center North

Brooklyn, New York 11201

Attention:

Telecopier:

 

with a
copy to:

 

[Assignor
to provide]

 

 

Counterparty:

 

 

 

Telecopier:  (    )

 

(b)                                 Any
party may change the entity, address or the attention party to which any such
request, notice, report, demand or other communication is to be given by
furnishing notice of such change to the other parties in the manner specified
above.  Without limiting the foregoing,
Assignor may not add any other parties to these notice provisions.  Rejection or refusal to accept, or inability
to deliver because of changed address or because no notice of changed address
was given, shall be deemed to be receipt of any such notice.  A notice given by a party under any Loan
Document of a change of entity, address or attention party shall be deemed to
be a notice of such change for purpose of all Loan Documents to which such
party is a party.

 

5

 

(c)                                  Unless
notified to the contrary pursuant to this Section, any notice or communication
to be made to any Lender shall be made only to Agent and its counsel as
provided for in this Section.

 

SECTION 9.                                Filing
of Financing Statements; Appointment of Attorney-in-Fact.  (a) Assignor hereby authorizes Agent to file
Uniform Commercial Code financing statements describing the Collateral and
evidencing and perfecting the security interests in the Collateral granted to
Agent pursuant to this Assignment and to file any Uniform Commercial Code
financing statements reasonably necessary or advisable too accomplish the
purposes of this Assignment and (b) effective upon the occurrence of an Event
of Default, Assignor hereby appoints Agent the attorney-in-fact for Assignor,
with full authority in its place and stead and in the name of Assignor or
otherwise, from time to time in Agent’s discretion, to take any action and to
execute any instrument which Agent may deem reasonably necessary or advisable
to accomplish the purposes of this Assignment. 
Assignor agrees that the foregoing power constitutes a power coupled
with an interest which may not be revoked and which shall survive until all of
the Indebtedness shall have been indefeasibly paid in full and satisfied.

 

SECTION 10.                          Successors
and Assigns Included in Parties. 
Whenever in this Assignment Assignor, Agent or Lender(s) is named or
referred to, the heirs, legal representatives, successors and assigns of such
party or parties shall be included, whether so expressed or not.  All obligations, covenants and agreements
contained in this Assignment shall be binding on, and inure to the benefit of,
the respective heirs, legal representatives, successors and assigns of
Assignor, Agent or such Lender(s), whether so expressed or not.

 

SECTION 11.                          Headings.  The headings of the Sections and
subsections of this Assignment are for the convenience of reference only, are
not to be considered a part hereof and shall not limit or otherwise affect any
of the terms hereof.  All references in
this Assignment to Sections, subsections and other divisions are references to
the Sections, subsections and divisions of this Assignment unless otherwise
stated.

 

SECTION 12.                          Invalid
Provisions to Affect No Others.  If
fulfillment of any provision hereof or any transaction related hereto at the
time performance of such provisions shall be due, shall involve transcending
the limit of validity presently prescribed by law, with regard to obligations
of like character and amount, then, ipso facto, the obligation to be fulfilled
shall be reduced to the limit of such validity; and if any clause or provision
herein contained operates or would prospectively operate to invalidate this
Assignment in whole or in part, then such clause or provision only shall be
held for naught, as though not herein contained, and the remainder of this
Assignment shall remain operative and in full force and effect.

 

SECTION 13.                          Number
and Gender.  Whenever the singular
or plural number, or the masculine, feminine or neuter gender is used herein,
it shall equally include the other.  The
words “hereof,” “herein” and “hereunder” and words of similar

 

6

 

import when used in this
Assignment shall refer to this Assignment as a whole and not to any particular
provision of this Assignment.

 

SECTION 14.                          Computation
of Time Periods.  In this
Assignment, with respect to the computation of periods of time from a specified
date to a later specified date, the word “from” means both “from and including”
and the words “to” and “until” both mean “to but excluding”.

 

SECTION 15.                          Governing
Law.  This Assignment shall be
governed by and construed in accordance with laws of the State of New York
applicable to contracts made and performed solely within such State.

 

SECTION 16.                          Amendments.  Neither this Assignment nor any provision
hereof may be changed, waived, discharged or terminated orally, but only by
instrument in writing signed by the party against whom enforcement of the
change, waiver, discharge or termination is sought.

 

SECTION 17.                          Counterparts.  This Assignment may be executed in any
number of counterparts, each of which, when executed and delivered, shall be an
original, but such counterparts shall together constitute one and the same
instrument.

 

SECTION 18.                          Time
of the Essence.  Time is of the
essence of this Assignment and of each and every term, covenant and condition
herein.

 

SECTION 19.                          Survival.  This Assignment and all covenants,
agreements, representations and warranties herein made shall survive the making
by Lenders of the Loans and the execution and delivery to Lenders of the
Building Loan Notes and the Project Loan Notes (regardless of any investigation
made by Lenders or on their behalf), and shall continue in full force and
effect so long as all or any part of the Loans is outstanding and unpaid.

 

SECTION 20.                          Exculpation.  This Assignment shall be subject to the
provisions of Sections 11.16 of the Loan Agreements.

 

SECTION 21.                          Further
Assurances.  Assignor agrees that at
any time and from time to time Assignor will promptly execute and deliver all
further instruments and documents, and take all further action, that may be
reasonably necessary or desirable, or that Agent may reasonably request, in
order to perfect and protect any security interest granted or purported to be
granted hereunder or to enable Agent to exercise and enforce its rights and
remedies hereunder.

 

SECTION 22.                          Assignment.  The assignment of this Assignment shall be
governed by Sections 7.50 and 11.05 of the Loan Agreements.

 

7

 

SECTION 23.                          Entire
Agreement.  This Assignment and the
other Loan Documents embody the entire agreement and understanding between the
parties with respect to the Loans and supersede all other prior agreements and
understandings, whether oral or written, relating to the subject matter hereof
and thereof, except as specifically agreed to the contrary.

 

SECTION 24.                          Statute
of Limitations.  Assignor hereby
expressly waives and releases to the fullest extent permitted by law the
pleading of any statute of limitations as a defense to the performance of its
obligations hereunder.

 

SECTION 25.                          Remedies
of Assignor.  In the event that a
claim or adjudication is made that Agent or any Lender has acted unreasonably
or has unreasonably delayed acting with respect to any consent or approval
requested under this Assignment in any case whereby law or under this Agreement
it has an obligation to act reasonably or promptly, Agent or such Lender shall
not be liable for any monetary damages, and the sole remedies of Assignor shall
be limited to injunctive relief or declaratory judgment.

 

SECTION 26.                          Obligations
Not Impaired.  Assignor hereby
waives diligence, presentment, demand, protest and notice of any kind
whatsoever in respect of this Assignment (but not any notice of Default or
Event of Default provided for in the Loan Agreements), as well as any
requirement that Agent exhaust any right or remedy or take any action in
connection with this Assignment or any other Loan Document.  Assignor further waives all rights to have
any security marshalled upon the exercise of any remedies permitted hereunder.  Assignor agrees that Agent may take or
release other security for the Indebtedness, release any party liable for any
such Indebtedness, grant extensions, renewals or indulgences with respect to
said Indebtedness, and may apply any other security therefor held by it without
prejudice to any of its rights hereunder.

 

SECTION 27.                          No
Waiver.  No failure or delay on the
part of Agent to exercise any power, right or privilege under this Assignment
shall impair any such power, right or privilege, or be construed to be a waiver
of any default or an acquiescence therein, nor shall any single or partial
exercise of such power, right or privilege preclude any other or further
exercise thereof or of any other right, power or privilege.  To the extent permitted by law, Assignor
hereby waives any requirement that Agent commence any foreclosure proceeding
with respect to the Mortgaged Property or to any of the other collateral
securing payment of the Loan prior to enforcement of any remedies pursuant to
this Assignment.  Further, nothing
contained in this Assignment and no act or action taken or done, or omitted to
be taken or done, by Agent pursuant to the powers and rights granted to Agent
hereunder shall be deemed to (i) be a waiver of or to cure any Default or
Event of Default or (ii) be a waiver by Agent of any of its respective
rights and remedies against any Borrower Entity or Member in connection with,
or in respect of, the Indebtedness.

 

8

 

SECTION 28.                          Reinstatement
of Obligations.  If at any time all
or any part of any payment made by or on behalf of Assignor or received by
Agent or any Lender from Assignor under or with respect to this Assignment is
or must be rescinded or returned for any reason whatsoever (including, but not
limited to, the insolvency, bankruptcy or reorganization of Assignor), then the
obligations of Assignor hereunder shall, to the extent of the payment rescinded
or returned, be deemed to have continued in existence, notwithstanding such
previous payment, or receipt of payment by Agent or such Lender, and the
obligations of Assignor hereunder shall continue to be effective or be
reinstated, as the case may be, as to such payment, all as though such previous
payment had never been made.

 

SECTION 29.                          Successive
Actions.  A separate right of action
hereunder shall arise in favor of Agent or any Lender each time Agent or such
Lender acquires knowledge of any matter indemnified by Assignor under this
Assignment.  Separate and successive
actions by Agent may be brought hereunder to enforce any of the provisions
hereof at any time and from time to time. 
No action hereunder shall preclude any subsequent action, and, to the
extent permitted by applicable law, Assignor hereby waives and covenants not to
assert any defense in the nature of splitting of causes of action or merger of
judgments.

 

[SIGNATURE
PAGE FOLLOWS]

 

9

 

IN WITNESS WHEREOF,
Assignor has executed this Assignment as of the date first written above.

 

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
  THE
  NEW YORK TIMES BUILDING LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  FC
  LION LLC, member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  FC
  41st Street Associates, LLC, its

  managing member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  RRG
  8 South, Inc., its managing

  member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  NYT
  REAL ESTATE COMPANY LLC,

  member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

 

By countersigning this
Assignment Counterparty hereby: 
(a) acknowledges and consents to the assignment and security
interest granted by Assignor to Agent; (b) acknowledges Agent’s rights as
described herein; and (c) confirms that it has not previously received
notice of any other assignment of, or security interest in, Assignor’s rights
in, to and under the Confirmation. 
Until Agent notifies Counterparty in writing that Agent has released its
interest in the Confirmation, Counterparty agrees that it will:  (a) make payments in respect of the
Counterparty in accordance with this Assignment; (b) not accept changes to
the account designated for payments due to Assignor without Agent’s prior
written consent to each new account designation; (c) obtain Agent’s written
consent prior to assigning its interest or obligations under the Confirmation;
and (d) not modify or terminate the Confirmation, nor be relieved of its
obligations under the Confirmation, pursuant to any waiver given by Assignor
unless, in each case, made with Agent’s prior written consent.  Except as expressly provided herein in
respect of the Confirmation, Counterparty shall have no obligation or liability
to Agent in respect of the Confirmation, the assignment referenced herein or
the Loan.

 

	
  COUNTERPARTY:

  	
   

  
	
   

  	
   

  
	
  [

  	
   

  	
  ]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

Exhibit
A

 

Interest
Rate Cap

[attached
behind]

 

 

Exhibit
B

 

Wiring
Instructions

	
  Bank:

  	
   

  	
  Wachovia Bank, National
  Association

  5th and Market Streets

  Philadelphia, Pennsylvania 19106

  ABA#: 031-201-467

  
	
   

  	
   

  	
   

  
	
  Beneficiary:

  	
   

  	
  GMAC Commercial
  Mortgage Corporation

  
	
   

  	
   

  	
   

  
	
  Account Number:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Reference:

  	
   

  	
   

  

 

 

Exhibit N

 

Condominium Title
Endorsement

 

N-1

 

 

	
  

  	
  Fidelity National Title

  
	
  INSURANCE
  COMPANY OF NEW YORK

  

 

AFFIRMATIVE
INSURANCE ENDORSEMENT

 

ATTACHED to and forming a part of POLICY NO.:

 

The Company insures the insured against loss or damage
sustained by reason of:

 

1.           The failure of the unit identified in
Schedule A and its common elements to be part of a condominium within the
meaning of the condominium statutes of the State of New York.

 

2.           The failure of the documents required by the
condominium statutes to comply with the requirements of the statutes to the
extent that such failure affects the title to the unit and its common elements.

 

3.          Present violations of any
restrictive covenants which restrict the use of the unit and its common
elements and which are created by the condominium documents. Said restrictive
covenants do not contain any provisions which will cause a forfeiture or
reversion of title.

 

4.          The priority of any lien for
charges and assessments at Date of Policy provided for in the condominium
statutes and condominium documents over the lien of any insured first mortgage
identified in Schedule A.

 

5.            The failure of the unit and
its common elements to be entitled by law to be assessed for real property
taxes as a separate parcel.

 

6.          Any obligation to remove any improvements
which exist at Date of Policy because of any present encroachments or because
of any future unintentional encroachments of the common elements upon any unit
or of any unit upon the common elements or another unit.

 

7.           The failure of title by reason of a right of
first refusal to purchase the unit and its common elements which was exercised
or could have been exercised at Date of Policy.

 

THIS
ENDORSEMENT is made a
part of the policy and is subject to all of the terms and provisions thereof
and of any prior endorsement thereto. Except to the extent expressly stated, it
neither modifies any of the terms and provisions of the policy and any prior
endorsements, nor does it extend the effective date of the Policy, nor does it
increase the face amount thereof.

 

 

IN WITNESS
WHEREOF, the Company
has caused its corporate name and seal to be hereunto affixed by its duly authorized
signatory and countersigned on the date hereinafter set forth.

 

Dated:

	
   

  	
   

  
	
   

  	
   

  
	
  Countersigned:

  	
  Fidelity
  National Title Insurance Company

  of New York

  
	
   

  	
   

  
	
   

  	
   

  
	
  BY:

  	
   

  	
   

  	
   

  	
  BY

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
  Authorized Signatory

  	
   

  	
   

  	
  President

  
	
   

  	
  (Please print name below)

  	
  [SEAL]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ATTEST

  	
  /s/ Charles H. Wimer

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
						

 

 

Exhibit O

 

Title Assurance Letter

 

O-1

 

[LETTERHEAD OF ALL TITLE
COMPANIES]

 

                             ,
200  

 

GMAC Commercial Mortgage
Corporation, as Agent

100 South Wacker Drive, Suite 400

Chicago, Illinois 60606

 

Re:  New York Times Building, 

New York, New York (the “Property”)

Title No: [
                                
] [Title Company Name]

Title No: [
                                
] [Title Company Name]

Title No: [
                                
] [Title Company Name]

[Add more policies as
needed]

 

Ladies and Gentlemen:

 

This letter will confirm
that the above Title Companies have issued the policy or policies captioned
above.  In connection with the same, you
have advised the Title Companies of your intention to subordinate the insured
mortgage to the Declaration of Condominium for the premises described in said
policy(ies) (the “Mortgaged Premises”). 
You have asked the Title Companies to inform you what effect the insureds
voluntary act of subordinating the insured mortgage as aforesaid will have on
the liability of the insurer(s) under the policy(ies).

 

The above policy(ies)
is/are presently in full force and effect in accordance with the terms and
conditions and insuring provisions thereof, including any endorsements annexed
thereto, subject however, to the exclusions from coverage contained in the
policy(ies) or in any endorsements affixed to the policy(ies) and to the
exceptions to coverage contained on the Schedule B of the
policy(ies).  As of the date hereof, the
policy(ies) further insure that the subordination of the insured mortgage to
the Declaration of Condominium affecting the Mortgaged Premises will not,
except for the priority of the lien of condominium common charges for any unit
or any express provision of the said Declaration of Condominium agreed to by
you, affect the priority or enforceability of the lien of the insured mortgage
nor will such subordination void the coverage provided under the policy(ies).

 

[Title Companies]

 

 

Exhibit P

 

Conditional Assignment of
Declarant’s Rights

 

P-1

 

CONDITIONAL
COLLATERAL ASSIGNMENT OF DECLARANT’S RIGHTS

 

FC LION LLC, a New York
limited liability company (“Assignor”) for $10.00 and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged,
does hereby grant, assign, transfer and set over unto GMAC COMMERCIAL MORTGAGE
CORPORATION and its successors, as agent (including as successor to Initial
Agent (as hereinafter defined)) (“Agent”) for itself and any other co-lenders as may exist
from time to time (collectively, “Lenders”) under that certain Building Loan Agreement by
and among The New York Times Building LLC (“Borrower”), New York State Urban Development
Corporation d/b/a Empire State Development Corporation, as initial agent (“Initial Agent”), for
itself and for the benefit of Lenders and Agent, for itself and on behalf of
Lenders, dated as of June    , 2004 and that certain
Project Loan Agreement by and among Borrower, Initial Agent, for itself and on
behalf of Lenders, and Agent, for itself and on behalf of Lenders, dated as of
June    , 2004 (collectively, as the same may be revised,
restated, amended or modified from time to time, the “Loan Agreements”; capitalized
terms used herein but left undefined shall have the meanings assigned to such
terms in the Loan Agreements), all of Assignor’s rights and privileges
including, without limitation, the right to take any actions and/or exercise
any rights, remedies or easements available to Assignor as successor to
Borrower (the “Declarant’s Rights”)
arising under (i) the Declaration (as hereinafter defined), and
(ii) the by-laws attached thereto (the “By-Laws”) relating to the condominium (the “Development”) created
by the Declaration, but only to the extent the Declarant’s Rights relate to the
Mortgaged Property other than the NYTC Units.

 

So long as no Event of
Default shall have occurred and be continuing, Assignor may exercise the
Declarant’s Rights, except that it may not (i) further transfer or
encumber any of the Declarant’s Rights (except as permitted under the Loan
Agreements), (ii) cause or allow any of the Condominium Documents to be
modified in any material respect without Agent’s prior consent which consent
may not be unreasonably withheld or (iii) allow any new Manager (as
defined in the Declaration) to be elected or appointed unless Assignor shall
have caused such new Manager to deliver to Agent a duly executed Conditional
Resignation of Manager in the form attached to the Loan Agreements.

 

Upon the full payment of
the Indebtedness secured by the Building Loan Mortgage and Project Loan
Mortgage, the Declarant’s Rights shall automatically be reassigned to Assignor
by the Agent and this Assignment shall terminate.

 

For the purposes of this
Assignment, “Declaration”
shall mean the Declaration of Leasehold Condominium establishing a plan of
Leasehold condominium ownership of premises located on the easterly side of
Eighth Avenue between 40th and 41st Streets, New York,
New York pursuant to Article 9-B of the Real Property Law of the State of
New York, dated
                   ,
      , and recorded on
                       ,
        , in the Office of the City
Register, New York County as CRFN#
                          .

 

This Assignment shall be
governed by the laws of the State of New York applicable to contracts solely
performed in said State.

 

 

The rights and privileges
of the Agent and Lenders hereunder shall inure to the benefit of their
respective successors and assigns.  This
Assignment shall be binding upon, and inure to the benefit of, Assignor and its
successors and assigns.

 

[SIGNATURE PAGE
FOLLOWS]

 

2

 

IN WITNESS WHEREOF,
Assignor has duly executed this Assignment as of this
             
day of               ,
200  .

 

	
   

  	
  ASSIGNOR:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FC
  LION LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  FC 41st Street Associates, LLC, its

  managing member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  RRG 8 South, Inc., its

  managing member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  
								

 

3

 

	
  State of New
  York            )

  	
   

  
	
   

  	
  ss.:

  	
   

  
	
  County of New
  York        )

  	
   

  
			

 

On the
             
day of
                       ,
               ,
before me, the undersigned, 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 he executed the same in his capacity, and that by his
signature on the instrument, the individual, or the person upon behalf of which
the individual acted, executed the instrument.

 

	
   

  	
   

  
	
   

  	
  Notary
  Public

  

 

4

 

Exhibit Q

 

Conditional Resignation
of Managers

 

Q-1

 

CONDITIONAL
RESIGNATION OF

MANAGER

 

                        ,
      , 200  .

 

 

GMAC Commercial Mortgage
Corporation, as Agent

100 South Wacker Drive, Suite 400

Chicago, Illinois 606606

 

Re:  New York Times Building Condominium, New
York, New York

 

Ladies and Gentleman:

 

The undersigned,
                             ,
being a Manager on the [Board of Managers of the Association] [FC Board of
Managers](1)  (as such term is defined
in the Condominium Declaration (as defined in that certain Building Loan
Agreement and that certain Project Loan Agreement by and between The New York
Times Building LLC , New York State Urban Development Corporation d/b/a Empire
State Development Corporation, as initial agent (“Initial Agent”), for itself
and for the benefit of any co-lenders as may exist from time to time (such
Lenders collectively, “Lenders”) and GMAC Commercial Mortgage
Corporation and its successors, as agent (including as successor to Initial
Agent), for itself and on behalf of Lenders, each dated as of
June    , 2004 (collectively the “Loan Agreements”;
capitalized terms not defined herein shall have the meanings ascribed to them
in the Loan Agreements))), hereby tenders his or her resignation as a Manager
thereof.  Said resignation may not be
rescinded or revoked by the undersigned so long as you are the holder of any
mortgage (securing the Building Loan or the Project Loan) encumbering any of
the FC Units(as defined in the Loan Agreements).  Notwithstanding the foregoing sentence, said resignation shall
only be effective upon your acceptance thereof, with notice to the undersigned,
at any time during the existence and continuance of an Event of Default.

 

	
  Signature

  	
   

  	
  Position, if any

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

This is to certify that
this Conditional Resignation of Manager was executed in my presence on the date
hereof by the party whose signature appears above in the capacity, if any,
indicated.

 

(1)          Delete as appropriate.

 

 

	
   

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
  My commission expires:

  

 

2

 

Exhibit R

 

Form of Extension Loan
Intercreditor Agreement

 

R - 1

 

SUBORDINATION AND
INTERCREDITOR AGREEMENT

 

THIS SUBORDINATION AND INTERCREDITOR
AGREEMENT (this “Agreement”) is dated as of
                ,
200   between GMAC COMMERCIAL MORTGAGE CORPORATION, as
agent for itself and any other co-lenders as may exist from time to time
(collectively, “Lenders”) (together with its successors
and assigns, “Senior Lender”), a California corporation, having an
office at 100 South Wacker Drive, Suite 400, Chicago, Illinois 60606, and THE NEW YORK
TIMES COMPANY [or a wholly owned subsidiary thereof]
(together with its successors and assigns, “Subordinate Lender”),
a
                ,
having an office at 229 West 43rd Street, New York, NY  10036.

 

RECITALS:

 

A.                                   The
New York Times Building LLC (“Original Borrower”), New York State
Urban Development Corporation d/b/a Empire State Development Corporation, as
initial agent, for itself and for the benefit of Lenders, and Agent, for itself
and on behalf of Lenders, entered into that certain Building Loan Agreement and
that certain Project Loan Agreement, each dated as of
                          ,
2004 (collectively, as the same may be revised, restated, amended or modified
from time to time, the “Senior Loan Agreements”; capitalized
terms used herein without definition shall have the meanings assigned to such
terms in the Senior Loan Agreements), pursuant to which Lenders agreed to
advance to Borrower loans in the original maximum aggregate principal amount of
$320,000,000.00 (collectively, the “Senior Loan”).

 

B.                                     Pursuant
to the Senior Loan Agreements, Borrower executed that certain Ground Leasehold
Building Loan Mortgage, Assignment of Leases and Security Agreement and
Subordination Agreement and that certain Ground Leasehold Project Loan
Mortgage, Assignment of Leases and Security Agreement and Subordination
Agreement (collectively, the “Original Senior Loan Mortgages”)
encumbering the Property more particularly described as Exhibit A hereto
(the “Property”).

 

C.                                     On
the date hereof, the property encumbered by the Original Senior Loan Mortgages
is being subjected to a condominium regime, and in connection therewith
(a) the liens of the Original Senior Loan Mortgages are being spread to
include the Severance Subleases and the Ground Lease is being released
therefrom, (b) immediately thereafter, the Severance Sublease entered into
by NYTC Member is being released from the lien of the Original Senior Loan
Mortgages (so that thereafter the Original Senior Loan Mortgages will encumber
only the Severance Subleases (the “FC Severance Subleases”) entered by FC
Member (“Borrower”), (c) Borrower is assuming the obligations
of Original Borrower under the Senior Loan Agreements and the other Loan
Documents (collectively, the “Senior Loan Documents”) and
(d) the Original Senior Loan Mortgages are being severed, so that four
mortgages shall exist, and two of such 

 

 

mortgages (the “Subordinate
Mortgages”) are being assigned to Subordinate Lender to secure a
loan (the “Subordinate Loan”) being made to Borrower in the principal
amount of
$                     .  The Original Senior Loan Mortgages, as so
spread and released, are hereinafter referred to as the “Senior Mortgages”).

 

D.                                    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.

 

NOW, THEREFORE, for good
and valuable consideration, the receipt and 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 FC Severance Subleases by the Subordinate
Mortgages 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 agrees
that the Senior Obligations (as hereinafter defined), the rights, powers and
privileges of the Senior Lender under the Senior Loan Documents and any lien or
other security interest created in favor of Senior Lender (the real and
personal property encumbered by such liens and security interests, the “Senior Loan
Collateral”) shall be prior and superior to the Subordinated
Obligations (as hereinafter defined), the rights, powers and privileges of the
Subordinated Lender under the loan documents evidencing or securing the
Subordinate Loan (collectively, the “Subordinate Loan Documents”) and any lien
or other interests created in favor of Subordinated Lender, such priority, as
between the Subordinate Lender and the Senior Lender, to give to the Senior
Lender all of the rights, powers and privilege of a first priority secured
creditor under the New York Uniform Commercial Code, New York real property
law, other applicable law and otherwise in respect of the Senior Obligations,
the Senior Loan Documents and the collateral on which Senior Lender has been
granted a lien or security interest.  In
furtherance of the foregoing, Subordinate Lender hereby covenants and agrees
with Senior Lender that the lien of the Subordinate Mortgages are, and shall
continue to be, subject and subordinate to the lien of the Senior Mortgages 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 maximum aggregate amount of the Senior
Loan shall not be increased.  Any
assignment of rents or leases given in conjunction with the Subordinate
Mortgages are and shall in all respects be subject and subordinate to the
Senior Mortgages and to any assignment of rents or leases given in conjunction
with the Senior Mortgages.  The
foregoing shall apply notwithstanding the availability of other collateral to
Senior Lender or the actual date and time of execution, delivery, recordation, 

 

2

 

filing or perfection of the Senior Mortgages or any assignment of
leases related thereto or the Subordinate Mortgages or any assignment of leases
related thereto, or the lien or priority of payment thereof, the perfection or
non-perfection of any lien or security interest intended to be granted in favor
of Senior Lender, 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 Reorganization Proceeding, even if the
claim for such interest is not allowed pursuant to applicable law.  “Senior Obligations” shall mean,
collectively, the unpaid principal of and interest on the Senior Loan and all
other obligations and liabilities of the Borrower Entities to the Senior Lender
(including interest accruing at the then applicable rate after the maturity
(including by acceleration) of the Senior Loan and interest accruing at the
then applicable rate after the commencement of any Reorganization Proceeding,
whether or not a claim for post-filing or post-petition interest is allowed in
any such Proceeding), whether absolute or contingent, due or to become due, or
now existing or hereafter incurred, which may arise under, out of, or in
connection with, the Senior Loan Documents, in each case whether on account of
principal, interest, reimbursement obligations, fees, indemnities, costs,
expenses or otherwise (including all fees and disbursements of counsel to the
Senior Lender that are required to be paid by the Borrower or any other party
pursuant to the terms of the Senior Loan Documents).  In no event shall the term “Senior Obligations” include any of
the Subordinated Obligations.  “Subordinated
Obligations” shall mean, collectively, the unpaid principal of and
interest on the Subordinated Loan and all other obligations and liabilities of
the Borrower or any other party to the Subordinated Lender (including interest
accruing at the then applicable rate after maturity (including by acceleration)
of the Subordinated Loan and interest accruing at the then applicable rate
after the commencement of any Reorganization Proceeding, whether or not a claim
for post-filing or post-petition interest is allowed in such Proceeding),
whether absolute or contingent, due or to become due, or now existing or
hereafter incurred, which may arise under, out of, or in connection with, the
Subordinated Loan Documents, whether on account of principal, interest,
reimbursement obligations, fees, indemnities, costs, expenses or otherwise
(including all fees and disbursements of counsel to the Subordinated Lender
that are required to be paid by the Borrower or any other party pursuant to the
terms of the Subordinated Loan Documents). 
In no event shall the term “Subordinated Obligations” include any of the
Senior Obligations.

 

(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 Lender and Subordinate Lender, which are intended to be created
by the Senior 

 

3

 

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, or regarding any other remedial action to be taken by
Subordinate Lender or any so-called “workout,” “standstill” or other
arrangement made in lieu of the exercise of remedies; 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 or any other remedial action or work-outs, standstills, etc. with
respect to the Senior Loan Collateral, including, but not limited to, any deed
in lieu of foreclosure, or regarding any other remedial action to be taken by
Senior Lender or any so-called “workout,” “standstill” or other arrangement
made in lieu of the exercise of remedies; and (iii) the exercise by Senior
Lender of any other rights or remedies under the Senior Loan Documents
(collectively herein referred to as a “Senior Lender Notice”).

 

4

 

(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 (a “Monetary Default”) (which cure must
include all default interest, late charges, protective advances and
reimbursable sums (including reasonable attorneys’ fees and disbursements) then
due and owing to Senior Lender (collectively, the “Cure Amount”)), on or
before the tenth (10th) day after Senior Lender has given the first Senior
Lender Notice of such Monetary Default; provided, however, that the cure rights
of Subordinate Lender shall not apply to any Monetary Default (or series of
Monetary Defaults) that have been (or continue to be) cured by Subordinate
Lender more than three (3) consecutive times in any twelve (12) month
period and, in the event that Subordinate Lender and/or Borrower successfully
cures such default within such ten (10) days, 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 Monetary 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 a Monetary Default becomes an Event of Default,
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 notice of the
occurrence of such Event of Default, to obtain an assignment from the Senior
Lender of the Senior Loan Documents upon payment in full of the Cure Amount
plus the Exit Fee (as defined in the Side Letter re: Fees) (which Exit Fee
shall be, for purposes of this Agreement, deemed payable at the time of such
assignment) (collectively, the “Owed Amount”) (but without any
prepayment premium or penalty) together with any reasonable attorneys’ fees and
disbursements 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, which
default cannot be cured by the payment of 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 on or before the twentieth
(20th) day after Senior Lender has given the First Senior Loan Notice of such
default, or (ii) in the event such default becomes an Event of Default, to
obtain an assignment from the Senior Lender of the Senior Loan Documents upon
payment in full of the Owed Amount (but without any prepayment premium or
penalty) together with any reasonable attorneys’ fees and disbursements
incurred by the Senior Lender in connection with such assignment, on or before
the forty-fifth (45th) day after the expiration of the Cure Period (as
hereinafter defined).  If the default is
not susceptible of cure within such twenty (20) day period, Subordinate Lender
shall have such additional time as is necessary, but in no event more than
ninety (90) days (such time period, the “Cure Period”), 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 the Cure Period, Senior Lender shall not commence any
acceleration, any foreclosure action 

 

5

 

or proceeding against the
Senior Loan Collateral; provided, however, that from and after the scheduled
maturity date of the Senior Loan (without giving effect to any extension period
if such extension right was not exercised) Senior Lender may initiate
foreclosure or exercise any of its other remedies.

 

(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.

 

(e)                                  Following
the occurrence and during the continuation of a Noticed Default relating to a
Monetary Default or any other Event of Default, 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
Subordinate Lender receives, directly or indirectly, any payment with respect
to the Subordinate Loan in violation of the foregoing sentence, 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 maximum aggregate amount of the Senior
Loan shall not be increased.

 

5.                                       Standstill.  Until the Senior Loan is paid in full:

 

(a)                                  Subordinate
Lender shall waive any rights it may have pursuant to any Subordinate Loan
Document to approve or to consent to any action of Borrower if Senior Lender
shall have approved or consented to such action, and in the event that Senior
Lender has no approval or consent rights over an action by Borrower,
Subordinate Lender hereby waives any approval or consent rights it may have
over any such action;

 

(b)                                 Subordinate
Lender shall not, without the prior consent of Senior Lender, take any
Enforcement Action (as 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 Mortgages of a deed or
assignment in lieu of foreclosure, the obtaining 

 

6

 

of a receiver, the
seeking of default interest or late charges (provided, however, that nothing
shall prevent the accrual of such default interest or late charges pursuant to
the terms of the Subordinate Loan Documents), the taking of possession or
control of the Property, the suing on any of the Subordinate Loan Documents 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
application of any security for the Subordinate Loan against the Subordinate
Loan, the commencement of any bankruptcy, reorganization or insolvency
proceedings against Borrower or any guarantor under any federal or state law,
or the taking of any other enforcement action against any guarantor, the
Borrower or 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 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 payment with
respect to the Subordinate Loan contrary to the terms of this Agreement or the
Subordinate Loan Documents, (iii) an Event of Default under and as defined in
the Senior Loan Agreements has occurred and is continuing, 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.  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.  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 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 Mortgages direct payment to Subordinate Lender of all
or any part of the indebtedness secured by the Subordinate Mortgages 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 Loan Documents without the prior consent of Senior Lender.  In addition, Subordinate Lender shall not
pledge, assign, hypothecate, 

 

7

 

transfer, convey, sell or
grant participation rights in the Subordinate Loan or any interest in the
Subordinate Loan (other than to an Affiliate) without the prior consent of
Senior Lender;

 

(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 Senior Mortgages or the
Subordinate Mortgage if Senior Lender is collecting payments for such purposes,
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, during the
continuance of a default by Borrower which can be cured by the payment of money
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 Owed Amount together with any
reasonable attorney’s fees and disbursements incurred by the Senior Lender in
connection with such assignment; and

 

(h)                                 To
the extent that Subordinate Lender acquires any right under Section 361,
363 or 364 of the Bankruptcy Code, Subordinate Lender hereby agrees not to
assert such rights without the prior consent of Senior Lender.  In the event of the occurrence of a
Reorganization Proceeding, if proper proofs of claim and other pleadings and
motions are not filed by Subordinate Lender at least thirty (30) days prior to
the expiration date for such pleadings, Senior Lender shall have the right,
upon at least ten (10) days prior notice to Subordinate Lender, to file
appropriate proofs of claim and other pleadings or motions on behalf of
Subordinate Lender.  The Subordinate
Lender appoints Senior Lender as its attorney-in-fact for such purposes (which
appointment, being coupled with an interest, is irrevocable until the
termination of this Agreement).

 

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 Mortgages,
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 

 

8

 

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:

 

If to Senior Lender:

 

GMAC Commercial Mortgage
Corporation

100 South Wacker Drive –
Suite 400

Chicago, Illinois 60606

Attn:  Vacys R. Garbonkus

 

With a copy to:

 

Paul, Weiss, Rifkind,
Wharton & Garrison LLP

1285 Avenue of the
Americas

New York, New York
10019-6064

Attn:  Harris B. Freidus, Esq.

 

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:

 

Piper Rudnick, LLP

 

9

 

1251 Avenue of the
Americas

New York, New York 10020

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
received on a Business Day (and otherwise on the next Business Day) if sent by
hand delivery.

 

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.

 

10

 

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 or Senior Lender from time to time, but not more often than
once in any calendar year, Senior Lender or Subordinate Lender, as the case may
be, will furnish certificates indicating the principal, interest and other
sums, if any, due under the Senior Loan Documents or Subordinate Loan
Documents, as the case may be, and whether or not, to the best of Senior
Lender’s knowledge or Subordinate 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.

 

11

 

14.                                 Governing
Law.  This Agreement shall be
governed by and construed in accordance with the laws of the State of New York.

 

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.

 

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.

 

 

[signature page
follows]

 

12

 

WITNESS the execution
hereof as of the day and date first above written.

 

	
   

  	
  SENIOR LENDER:

  
	
   

  	
   

  
	
   

  	
  GMAC COMMERCIAL
  MORTGAGE

  CORPORATION, as agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SUBORDINATE LENDER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
  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)

  

 

 

	
  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)

  

 

 

Exhibit A

 

The Property

 

 

Exhibit S

 

Security Deposit
Accounts Agreement

 

S - 1

 

SECURITY DEPOSIT
ACCOUNTS AGREEMENT

 

THIS SECURITY DEPOSIT
ACCOUNTS AGREEMENT, dated as of
              
    , 200   (this “Agreement”), among
[           ], a
                                    
having an address at                                       
(“Bank”), THE NEW YORK TIMES
BUILDING LLC, a New York limited liability company (“Borrower”) and FC LION LLC, a New York limited liability
company (“FC Member”), each having
an address at One MetroTech Center North, Brooklyn, New York 11201 (Borrower
and FC Member collectively, the (“Pledgors”)
and GMAC COMMERCIAL MORTGAGE CORPORATION, a California corporation and any
successors thereto, as agent (including as successor to Initial Agent (as
hereinafter defined)) (including any of its successors and assigns as agent, “Agent”) for itself and any other co-lenders
as may exist from time to time (such lenders collectively, including any
successors and assigns, “Lenders”
and each individually, a “Lender”).

 

W
I T N E S S E T H:

 

WHEREAS, Borrower, New
York State Urban Development Corporation d/b/a Empire State Development
Corporation, as initial agent (“Initial Agent”),
for itself and for the benefit of Lenders, and Agent, for itself and on behalf
of Lenders, are entering into that certain Building Loan Agreement and that
certain Project Loan Agreement, each dated as of the date hereof (as the same
may be revised, restated, amended or modified, the “Loan Agreements”; capitalized terms not otherwise defined
herein shall have the respective meanings specified in the Loan Agreements),
pursuant to which the Lenders are making the Loans to Borrower; and

 

WHEREAS, one of the
conditions precedent to the obligations of the Lenders under the Loan
Agreements is that the Pledgors provide for the payment of Tenant security
deposits in respect of any Lease into one or more accounts established by
Pledgors with Bank which account(s) will be maintained for the benefit of Agent
and Lenders.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the foregoing, and for other good and valuable consideration,
the receipt and sufficiency of which hereby are acknowledged, the parties
hereto agree as follows:

 

1.  Accounts.  (a) This Agreement applies to the accounts identified below that
have been established at Bank by the applicable Pledgor for the benefit of
Agent and Lenders:

 

 

	
  Description
  of Accounts

  	
   

  	
  Account
  Numbers

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Account Name:
  The New York Times Building LLC Security Deposit Account — GMAC Commercial
  Mortgage Corporation, as agent and secured party Account Type:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Account Name: FC
  Lion LLC Security Deposit Account — GMAC Commercial Mortgage Corporation, as
  agent and secured party Account Type:

  	
   

  	
   

  	
   

  

 

The accounts identified
above shall be collectively referred to herein as the “Security Deposit Accounts”.  No Pledgor shall cancel or cause any of the
Security Deposit Accounts to be canceled, nor shall any Pledgor establish any
other account with Bank or any other bank, mutual fund, investment banking firm
or similar institution into which any Rents (other than security deposits)
shall be deposited.

 

(b)                                 (i)  Each Pledgor shall deposit, or cause to be
deposited, in the applicable Security Deposit Account, all security deposits
received by such Pledgor (or any leasing or managing agent) under or in respect
of any Lease within two (2) Business Days of receipt thereof.  All such deposits shall be made in the
lawful currency of the United States of America.  If any such security deposit is in the form of a letter of
credit, such letter of credit (or any replacement thereof) must be delivered to
Bank within the same time period, must be an irrevocable, standby letter of
credit in form and content and from an institution reasonably acceptable to
Agent and must be payable to Agent, provided that any such letter of credit may
be payable to the applicable Pledgor if such letter of credit is also freely
assignable to Agent and is actually assigned to Agent prior to or
simultaneously with its delivery to Bank. 
To the extent required by the applicable Lease, each applicable Pledgor
shall require each applicable Tenant to maintain in effect any such letter of
credit (or any replacement thereof) during the term of the applicable Lease or
replace such letter of credit with a cash deposit.  If any such letter of credit is not so maintained or replaced
within fifteen (15) days prior to the expiration thereof, Agent shall have the
right, in addition to any other remedies available to Agent, to require Bank to
draw upon such letter of credit.  Upon
receipt, Bank shall send copies of such letters of credit to Agent.

 

(ii)                                  In
the absence of instructions from a Pledgor as to which account any amounts
shall be deposited to, Bank shall notify the Pledgors and request such
instructions, and in the meantime, Bank may refuse to accept delivery of such
amounts until such instructions are received from such payor or Pledgor.

 

(c)                                  The
applicable Pledgor shall provide the notice set forth on Exhibit A attached hereto to each party to
a Lease as each Lease is executed (or, if such Lease has previously been
executed, then immediately).  The
applicable Pledgor shall obtain the acknowledgment of its Tenants to such
notice. If the applicable Pledgor fails to provide any such notice or obtain
such acknowledgement, or if any Event of Default has 

 

2

 

occurred and is
continuing, Agent shall have the right (and without prejudice to Agent’s rights
with respect to such failures or Event of Default ) to direct such parties to
remit all security deposits directly into the applicable Security Deposit
Account by issuing a notice as Agent deems appropriate.  Each of the Pledgors hereby grants to Agent
a power of attorney to sign and deliver the foregoing notices, which power of
attorney shall be deemed coupled with an interest and irrevocable until the
Indebtedness has been paid in full, and each Pledgor directs all applicable
Tenants (and any successor to the interest of any such Tenant) under the
applicable Leases to follow any such instructions given by Agent,
notwithstanding any contrary instructions from any Pledgor and without any
obligation or right on the Tenant’s part to determine the actual existence of
an Event of Default or other event claimed by Agent as the basis for Agent’s
right to send such notice.

 

(d)                                 No
modifications or revocations of any notice given by any Pledgor pursuant to
clause (c) above are permitted without Agent’s prior written approval, which
approval shall not be unreasonably withheld or delayed.  Upon Agent’s request from time to time, each
Pledgor will certify in writing that it has sent a notice to all applicable
Tenants or otherwise demonstrate to Agent’s satisfaction that notices have been
issued to all applicable Tenants.

 

(e)                                  Upon
Agent’s request from time to time, each Pledgor shall provide a written statement
to Agent itemizing the amounts deposited in its Security Deposit Account for
the period covered by Agent’s request and such supporting documentation as
Agent reasonably may require.

 

(f)                                    Each
of the Pledgors represents and warrants that (i) this Agreement creates a
valid, first priority security interest in all of its rights in the Collateral
(as defined below), (ii) as of the date hereof, except for the security
interest created by this Agreement, the Security Deposit Accounts are free from
any Lien, or other right, title and interest of any other person or party and
(iii) the exact legal name and state of formation of each Pledgor are as set
forth on page one hereof.  Except as
permitted hereunder, no Pledgor shall sell, transfer, encumber, hypothecate or
otherwise dispose of, or grant any option with respect to, the Collateral, or
create or permit to exist any Lien upon the Collateral.

 

(g)                                 The
Security Deposit Accounts shall not be evidenced by a certificate of deposit,
passbook or other instrument.

 

(h)                                 Account
balances shall accrue interest at a savings account rate (or a money market
rate, but only to the extent that the Security Deposit Accounts can remain
“deposit accounts” (as defined in the UCC) notwithstanding the giving of a
money market rate) for accounts denominated in U.S. dollars and interest shall
be credited by Bank to the applicable Security Deposit Account not later than
the fifth (5th) Business Day of the month immediately following the month for
which accrued interest is being credited. 
Interest accruing on each of the Security Deposit Accounts shall be
periodically added to the principal amount of the corresponding Security
Deposit Account.

 

3

 

(i)                                     Each
Pledgor acknowledges and agrees that neither it, nor any other party claiming
on behalf of, or through, it, shall have any right, title or interest, whether
express or implied, in the Security Deposit Accounts, or to withdraw or make
use of any amounts from any Security Deposit Account except to the extent
expressly permitted by Section 5 hereof.

 

2.  Pledge of the Collateral.

 

(a)                                  To
secure the full payment of the Indebtedness and the performance of the
Obligations, each Pledgor hereby sells, conveys, assigns, transfers and grants
a first priority continuing security interest in, pledges and sets over unto
Agent, for Agent’s own benefit and the benefit of Lenders, all of its right,
title and interest, whether now owned or hereafter acquired or arising,  in and to each Security Deposit Account, all
interest, dividends, credits and proceeds relating thereto, all monies, checks
and other similar instruments held or deposited therein and all of Borrower’s
rights under any letters of credit, including all rights to proceeds of any
letters of credit (collectively, the “Collateral”):

 

(b)                                 Bank
acknowledges that this Agreement constitutes notice of Agent’s security
interest in the Collateral and hereby acknowledges and consents thereto.

 

(c)                                  Pledgors
hereby authorize Agent to file UCC financing statements describing the
Collateral and evidencing and perfecting the security interest in the
Collateral granted to Agent pursuant to this Agreement and to file any other
UCC financing statements reasonably necessary or advisable to accomplish the
purposes of this Agreement.

 

3.  Control of the Collateral.  If Agent delivers to Bank a Notice of
Exclusive Control (as hereinafter defined) and until such time as such Notice
of Exclusive Control is rescinded in writing by Agent, Bank will comply with
any directions originated by Agent concerning the Security Deposit Accounts and
the other Collateral without further consent by any Pledgor.  Agent may exercise any rights and powers
under or in connection with this Agreement and the Collateral without further
consent of any of the Pledgors.  Subject
to the foregoing, Bank shall also comply with entitlement orders or other
directions concerning the Security Deposit Accounts and the other Collateral
originated by any of the Pledgors or their Authorized Representatives (as
defined in Section 5(b) below), until such time as Agent delivers a
written notice to Bank (with copies to Pledgors) that Agent is thereby
exercising exclusive control over the Security Deposit Accounts and the other
Collateral.  Such notice is referred to
herein as the “Notice of Exclusive Control”.  After Bank receives a Notice of Exclusive
Control (and so long as such Notice of Exclusive Control has not been rescinded
in writing by Agent), it will cease complying with entitlement orders or other
directions concerning the Security Deposit Accounts and the other Collateral
originated by any Pledgor or any of its Authorized Representatives and will
comply solely with entitlement orders or other directions concerning the
Security Deposit Accounts and the other Collateral originated 

 

4

 

by Agent.  As between Pledgors and Agent, Agent agrees
to give a Notice of Exclusive Control only if a Noticed Default or an Event of
Default has occurred and is continuing.

 

4.  Agency.  (a) Agent hereby appoints Bank as Agent’s agent, bailee and
pledgee and pledgee-in-possession for the Collateral, and Bank, by its
execution and delivery of this Agreement, hereby accepts such appointment and
agrees to be bound by the terms of this Agreement.  Each of the Pledgors hereby agrees to such appointment of Bank.

 

(b)                                 Bank
agrees that all cash and other property held in the Security Deposit Accounts
shall be segregated from all other cash and property held by Bank and shall be
identified as being held in trust pursuant to this Agreement.  Segregation will be accomplished by
appropriate identification of the cash or other property held in trust on the
books and records of Bank.  Bank agrees
not to commingle the amounts held in, or designated for deposit in, the
Security Deposit Accounts with any other amounts held on behalf of Agent,
Pledgors or any other party.  Agent
agrees that Bank may commingle security deposits received with respect to
different Tenants in a single account provided that Bank is able to separately
track interest accruing to each Tenant.

 

5.  Withdrawals.  (a) 
So long as a Notice of Exclusive Control is not in effect, and as
between Pledgors and Agent, and without any right, duty or obligation on the
part of Bank to verify compliance by Pledgors with this Section 5(a),
Pledgors may utilize funds in the Security Deposit Accounts, upon not less than
five (5) Business Days’ prior written confirmation from the applicable Pledgor
to Agent specifying the amount of funds to be disbursed and certifying that
such Pledgor is entitled, by the applicable Lease and by law, to the amounts so
requested or the proceeds of the applicable letter of credit.  Upon receipt of such certification, Agent
shall instruct Bank to deliver and apply such funds in accordance with the
terms of such certification (or Agent shall draw upon the applicable letter of
credit).  The applicable Pledgor shall
provide evidence to Agent, on Agent’s request, of the proper application of
such funds.  Upon the delivery of a
Notice of Exclusive Control, the rights conferred upon the Pledgors pursuant to
this Section shall immediately and automatically terminate without further
action being required of Agent, Bank or any Pledgor.

 

(b)                                 Each
Pledgor agrees to designate a limited number of persons who have authority to
issue or deliver withdrawal, transfer or disbursement instructions to Bank
(each such person, an “Authorized
Representative”).  The
initial list of Authorized Representatives for each Pledgor and samples of
their respective genuine signatures is attached hereto as Exhibit B (“Certificate of Authority”). 
Each of the Pledgors may, from time to time, amend its then current list
of Authorized Representatives by sending an amendment to, or replacement of,
the Certificate of Authority, in each case to be substantially in the form of Exhibit B and signed by a Secretary,
Assistant Secretary or other duly authorized officer of the applicable
Pledgor.  Bank will be authorized to
rely and act upon all instructions given or purported to be given by an
Authorized Representative of a Pledgor, provided that (i) in the case of
written instructions, such written instructions bear the original signature,
facsimile 

 

5

 

signature or electronic
signature of an Authorized Representative which resembles the specimen
signature for such Authorized Representative on file with Bank; and (ii) in the
case of electronically transmitted instructions, the person providing the
instruction uses a security code or other authentication procedure provided by
Bank for such Pledgor’s use.  Unless an
expiration date is expressly stated in the Certificate of Authority, all
authorizations shall continue in full force and effect until canceled or
superseded by a subsequent Certificate of Authority received by Bank with
reasonable opportunity to act thereon.

 

6.  Bank’s Obligations with respect to the
Collateral.

 

(a)                                  The
parties agree that items deposited in the Security Deposit Accounts shall be
deemed to bear the valid and legally binding endorsement of the payee and to
comply with all of Bank’s requirements for the supplying of missing
endorsements, now or hereafter in effect. 
As between Pledgors and Agent, any deposit made by or on behalf of any
Pledgor into the applicable Security Deposit Account shall be deemed deposited
into such Security Deposit Account when the funds in respect of such deposit
shall become collected funds.

 

(b)                                 Notwithstanding
anything to the contrary herein, each of the Pledgors acknowledges that it is
responsible for monitoring the sufficiency of funds deposited its respective
Security Deposit Account and that each is liable for any deficiency in
available funds necessary to cover disbursements and fees to Bank, irrespective
of whether it has received any account statement, notice or demand from Agent
or Bank. If on any day there are insufficient amounts in the applicable
Security Deposit Account necessary to cover disbursements and fees to Bank, the
applicable Pledgor shall immediately deposit into the applicable Security
Deposit Account, without the need for any notice or demand from Agent or Bank,
the amount of such deficiency in immediately available funds.

 

(c)                                  Availability
of cash credited to the applicable Security Deposit Account shall be subject to
checks, drafts or other demand instruments having cleared deposit.  If withdrawal instructions for wire transfers
are received (i) at or before 2:00 p.m. eastern time on a Business Day, payment
of the amount withdrawn shall be made to or for the benefit of the applicable
Pledgor by wire transfer on the same Business Day, or (ii) after 2:00 p.m.
eastern time on a Business Day, payment of the amount withdrawn shall be made
to or for the benefit of the applicable Pledgor by wire transfer on the next
Business Day.

 

7.  No Other Assignments.  Bank represents and warrants to Agent that
no other notices of control, assignment, grant of security interest or Lien of
any kind in respect of the Collateral are reflected in Bank’s records
concerning the Collateral.  Bank hereby
agrees that any such notice of control, assignment, grant of security interest,
or Lien of any kind in respect of the Collateral that it receives, including
the notice conferred by this Agreement, will be recorded in Bank’s records
concerning the Collateral and Bank will immediately notify Agent upon receipt
thereof.  Bank agrees not to allow any
person or entity other than Agent and Bank (to the extent permitted in 

 

6

 

Section 12 below) to
withdraw amounts from the Security Deposit Accounts (it being acknowledged,
however, that Pledgors have the rights to utilize funds in the Collateral
Accounts to the extent provided in Sections 3 and 5 hereof).

 

8.  Actions With Respect to the Collateral
Following an Event of Default.

 

(a)                                  At
all times after Bank’s receipt of a Notice of Exclusive Control, and until Bank
has received notice from Agent that such Notice of Exclusive Control has been
rescinded, Bank shall solely follow the written instructions of Agent as to the
Collateral, including amounts from time to time on deposit in the Security
Deposit Accounts, without further consent of any of the Pledgors, and Agent
shall be irrevocably entitled to exercise any and all rights and remedies in
respect of or in connection with the Collateral provided to Agent under the
Loan Agreements or any other Security Document or otherwise available in equity
or under applicable law, without further consent or instructions from any of
the Pledgors.  Each of the Pledgors
agrees that Bank may act as the agent of Agent in exercising, as to any funds
or other property from time to time consisting of Collateral, any rights of set-off
provided by the Loan Agreements or any other Loan Document or otherwise
available in equity or under applicable law, without further consent or
instructions from any Pledgor.

 

(b)                                 Upon
the occurrence and during the continuance of an Event of Default, Agent may,
without notice of any kind, except for notices required by law which may not be
waived (in addition to any other rights or remedies under this Agreement, at
law or in equity or otherwise, but subject to the provisions of applicable law)
retain for its own account or otherwise sell or dispose of all or any portion
of the Collateral in one or more public or private sales, and, in each case,
apply such proceeds in accordance with the Loan Documents.  In addition to the rights, powers and
remedies granted to it under this Agreement and in any other Loan Document,
Agent shall have all the rights, powers and remedies available at law or in
equity, including, without limitation, the rights and remedies of a secured
party under the applicable Uniform Commercial Code.  To the extent permitted by law, each of the Pledgors waives
presentment, demand, protest and all notices of any kind and all claims,
damages and demands it may acquire against the Agent or any Lender arising out
of the exercise by them of any rights hereunder, except for claims, damages or
demands arising from the gross negligence or willful misconduct of Agent or any
Lender.

 

(c)                                  Effective
during the continuance of an Event of Default, each Pledgor hereby irrevocably
constitutes and appoints Agent and any officer or agent of Agent, with full
power of substitution, as its true and lawful attorney-in-fact with full
irrevocable power and authority in the place and stead of each Pledgor and in
the name of each Pledgor or in Agent’s own name, from time to time in Agent’s
discretion, for the purpose of carrying out the terms of this Agreement, to
take any and all appropriate action and to execute any and all documents and
instruments which may be necessary or desirable to accomplish the purposes of this
Agreement, including, without limitation, any financing statements,
endorsements, assignments or other instruments of transfer.

 

7

 

9.  Information.  (a) 
Bank shall provide to the applicable Pledgor and Agent a periodic
statement setting forth all deposits, withdrawals, and account service charges,
if any, with respect to each Security Deposit Account.  Such periodic statements will be issued on a
monthly or quarterly basis, depending on activity, but not more frequently than
once per month.  Any Pledgor or Agent
may request more frequent statements in which case Bank may assess such Pledgor
for the applicable account service charge.

 

(b)                                 Each
Pledgor acknowledges its duty to promptly examine each periodic statement
issued to it by Bank and to use reasonable care to discover any errors or
unauthorized transactions charged to, or affecting, the Security Deposit
Accounts.  Should such Pledgor fail to
send written objections or exceptions to Bank with respect to a periodic
statement within sixty (60) days of the date such statement is issued, such
Pledgor shall be deemed to have approved such statement, and, as against such
Pledgor, such statement shall be presumed to be correct for all purposes with
respect to all information set forth therein. 
The foregoing shall not be construed to limit, in any respect, Bank’s
right to correct any error it discovers with respect to the Security Deposit
Accounts or to withdraw from the Security Deposit Accounts cash or other
property deposited therein by Bank in error.

 

10.  Certain Matters Affecting the Bank.  Pledgors and Agent agree that:

 

(a)                                  Bank
shall be entitled to rely upon, and shall be protected in acting or refraining
from acting upon, any written notice, certificate or other document or
communication (including, without limitation, facsimiles thereof) believed by
it to be genuine and to have been signed, presented or delivered by the proper
party or parties, and Bank may rely on statements contained therein without
further inquiry or investigation.  Bank
shall have no obligation to review or confirm that actions it is requested to
take pursuant to any such notice comply with any agreement or document other
than this Agreement.

 

(b)                                 Bank
shall be entitled to rely, and shall be protected in acting or refraining from
acting, without independent investigation or any further consent or
instructions from any Pledgor, upon any written notice received from Agent to
the effect that an Event of Default has occurred or has ceased to exist or that
any action requested by Agent to disburse funds from the Security Deposit
Accounts or other Collateral or exercise Agent’s set-off rights against the
Collateral is permitted under the Loan Agreements, any other Loan Document
and/or in equity or under applicable law.

 

(c)                                  The
duties and obligations of Bank shall be determined solely by the express
provisions of this Agreement, and, except as expressly set forth herein, Bank
will not be charged with knowledge of any provisions of the Loan Agreements or
any other Loan Documents.  Bank shall
not be liable except for the performance of its duties and obligations as are
specifically set forth in this Agreement, except to the extent any claims,
losses, damages, expenses or other liabilities are caused by the gross
negligence or willful or intentional misconduct of Bank, and no implied
covenants or obligations, except those that may be implied by law, shall be
read into this 

 

8

 

Agreement against Bank.  Without
limiting the foregoing: Bank shall have no investment responsibility with respect
to the cash or other property held in the Collateral except as specifically set
forth herein; shall not be accountable for the use or application by any
Pledgor or any other identified party of any money paid over by Bank in
accordance with this Agreement; and shall have no responsibility for taking any
steps to preserve rights against any parties with respect to any property held
hereunder.

 

(d)                                 Bank
shall have no liability for any loss occasioned by delay in the actual receipt
of notice or other instructions to Bank of any payment, disbursement or any
other transaction regarding the Collateral, nor shall Bank be liable for any
claims, losses, damages, expenses or other liabilities, other than to the
extent the same may be caused by the gross negligence or willful or intentional
misconduct of Bank.  Under no
circumstance whatsoever will Bank be liable for any lost profits or for any
incidental, special, consequential or punitive damages whether or not Bank knew
of the possibility or likelihood of such damages and regardless of the form of
action in which any such loss or damage may be claimed.  Bank’s substantial compliance with its
standard procedures for provision of the services required under this Agreement
shall be deemed to constitute its exercise of reasonable care.

 

(e)                                  If
any Pledgor becomes subject to a voluntary or involuntary proceeding under the
United States Bankruptcy Code, or if Bank is otherwise served with legal
process which Bank in good faith believes affects the Collateral, or if at any
time Bank receives conflicting instructions with respect to any action it is
requested to take under this Agreement, Bank shall have the right to place a
hold on the Collateral until such time as Bank receives an appropriate court
order or other assurances satisfactory to Bank establishing that the Collateral
continue to be disbursed according to the instructions contained in this
Agreement.

 

11.  Irrevocable Agreement.  Pledgors acknowledge that the agreements
made by it and the conveyances and authorizations made and granted by it herein
are irrevocable and that the conveyances and authorizations made and granted
herein constitute powers coupled with an interest.

 

12.  Waiver of Set-off Rights by Bank.  Bank hereby waives, with respect to all
existing and future claims it may have against Pledgors, all rights of set-off
and banker’s liens which it may now or hereafter have against the Collateral
and all items (and proceeds thereof) that come into the possession of Bank in
connection with the Collateral, except, without further consent from Pledgors
or Agent, to the extent Bank is unable to obtain payment from Pledgors and to
the extent permitted by applicable law, rights of set-off and banker’s liens
arising in connection with (i) items deposited in the Security Deposit Accounts
that are subsequently returned to Bank unpaid for insufficient funds or if such
amount is otherwise uncollectible by Bank, including without limitation by any
“stop payment order” having been applied to such item, (ii) any fees due to
Bank or charges incurred by Bank in connection with its deposit or collection
attempts (provided such amounts are not in excess of the fees or charges Bank
regularly and customarily charges its customers with respect thereto), (iii)
the amount represented by such uncollectible item if such item has actually
been paid by Bank to Pledgors prior to 

 

9

 

Bank’s collection
thereof, (iv) unpaid fees and expenses with respect to the Collateral that are
charged to any of the Pledgors by Bank in the normal course of business for the
Collateral and (v) any funds or items deposited in the Security Deposit
Accounts in error or as necessary to correct processing errors (and Bank shall
have the right to withdraw from the Security Deposit Accounts funds or other items
deposited in error without further consent from Pledgors or Agent).

 

13.  Miscellaneous.  This Agreement shall supersede any other
agreement (to the extent conflicting herewith) relating to the matters referred
to herein, including any other account agreement between either Pledgor and
Bank.  This Agreement is binding upon
the parties hereto and their respective successors and assigns (including any
trustee of either Pledgor appointed or elected in any action under the United
States Bankruptcy Code) and shall inure to their benefit.  This Agreement may not be changed, amended,
modified or waived orally, but only by an instrument in writing signed by each
of the parties hereto, provided that such instrument need by signed only by
Bank and Agent if it does not change any rights or obligations of Pledgors
hereunder.  This Agreement shall be
governed by, and interpreted in accordance with, the laws of the State of New
York applicable to contracts made and performed solely within such State,
except with regard to payment of checks and other items and other issues
relating to the operations of the Security Deposit Accounts or any other
account to which funds from the Security Deposit Accounts are transferred,
which issues shall be interpreted and enforced according to the laws of the
state where the Security Deposit Accounts or such other account are
located.  This Agreement may be executed
in any number of counterparts which together shall constitute one and the same
instrument.  Pledgors may not assign
this Agreement without the prior approval of Agent.  Agent may assign this Agreement in conformance with
Section 11.05 of the Loan Agreements. 
Bank may assign this Agreement with the prior approval of Agent, and
notice thereof shall be given to Pledgors.

 

14.  Taxes.  Each Pledgor shall deliver promptly to Bank a duly completed and
executed copy of the proper United States Internal Revenue Service (a) Form W-9
or (b) if a Pledgor is not a United States citizen, Form 1001, Form 4224, Form
W-8 or Form 8709 (as applicable), certifying such Pledgor’s status as a
beneficial owner of its Security Deposit Account (within the meaning of
Section 1.1441-1(c)(6) of the Treasury Regulations of the United States
Internal Revenue Tax Code).  Each of the
Pledgors further agrees to provide duly executed and completed updates of such
forms (or applicable successor forms) promptly (but in any event no later than
10 Business Days) upon Bank’s request therefor, if Bank notifies such Pledgor
that existing forms have expired or become obsolete.  Each Pledgor shall, on its own initiative, shall promptly provide
(but in any event no later than 10 Business Days) duly executed and completed
updates of such forms upon the occurrence of any event in respect of such
Pledgor requiring a change in the most recent form previously delivered by such
Pledgor to Bank.  Each Pledgor shall be
responsible for the payment of all taxes relating to the assets in its Security
Deposit Account (other than taxes with respect to investment earnings retained
by Bank in accordance with this Agreement).

 

10

 

15.  Termination.  Pledgors may not terminate this Agreement
for any reason without Agent’s prior written consent; provided, however, that
Pledgors may terminate this Agreement for the purpose of using a different
depository bank if (i) Agent approves such replacement depository bank, such
approval not to be unreasonably withheld or delayed and (ii) such replacement
depository bank shall enter into an agreement with Pledgors and Agent
substantially similar to this Agreement. 
This Agreement shall remain in full force and effect until such time as
(a) Agent shall deliver written notice to Bank as to the full and final payment
of all Indebtedness under the Loan Documents and the termination of the Loan
Documents, (b) Agent shall deliver written notice of termination to Pledgors
and Bank at any time for any reason, (c) Bank shall deliver written notice of
termination to Pledgors and Agent not less than thirty (30) days prior to the
effective termination date or (d) Borrower shall have replaced Bank with a
replacement depository bank in accordance with the immediately foregoing
sentence.  If Bank so terminates this
Agreement or if Agent so terminates this Agreement but requires that Security
Deposit Accounts with a different depository be established, Agent and Pledgors
shall jointly select a new depository to replace Bank, and thereupon Agent and
the Pledgors shall enter into a new arrangement with such depository
substantially similar to this Agreement. 
Bank hereby agrees that it shall promptly take all reasonable action
necessary to facilitate the transfer of the Collateral to any replacement
depository.  All rights of Bank under
Sections 10 and 12 hereof for the period prior to any such termination shall
survive such termination.

 

16.  Further Assurances.  Each Pledgor hereby covenants and agrees
that it shall (i) perform such acts and execute, acknowledge and deliver, from
time to time, such financing statements and other instruments as may be
reasonably required by Agent to perfect or better assure this Agreement and the
security interests created hereby, and file or record the same in the public
records specified by Agent and (ii) upon request of Agent, execute and deliver
all further instruments and documents, and take all further action, that may be
necessary or desirable in Agent’s reasonable opinion to protect any security
interest granted or purported to be granted hereby, to enable Agent to exercise
and enforce its rights and remedies hereunder with respect to the Collateral or
to effectuate the purpose and intent of this Agreement, provided that the same
do not increase such Pledgor’s liabilities, or decrease such Pledgor’s rights,
under the Loan Documents (other than, in each case, to a de minimis extent).

 

17.  Notices.  (i) Any request, notice, report, demand, approval or other
communication permitted or required by this Agreement to be given or furnished
shall be in writing and shall be deemed given or furnished when addressed to
the party intended to receive the same, at the address of such party as set
forth below, (i) when delivered by overnight nationwide commercial courier
service, one (1) Business Day (determined with reference to the location of the
recipient) after the date of delivery to such courier service, (ii) when
personally delivered, if delivered on a Business Day in the place of receipt
and during normal business hours (otherwise on the next occurring Business Day
in such place of receipt) or (iii) when transmitted by telecopy to the telecopier
number set forth below, to the party intended to receive same if transmitted on
a Business Day in the place of receipt and during normal business hours (and
otherwise on the next occurring 

 

11

 

Business Day in such
place of receipt) and provided that such transmission is confirmed by duplicate
notice in such other manner as permitted above:

 

Agent:

 

GMAC Commercial Mortgage
Corporation

100 South Wacker Drive, Suite 400

Chicago, Illinois 60606

Attention:  Vacys R. Garbonkus

Telecopier:  (312) 917-6131

 

with a copy to:

 

Paul, Weiss, Rifkind,
Wharton & Garrison LLP

1285 Avenue of the Americas

New York, New York 10019-6064

Attention:  Harris B. Freidus, Esq.

Telecopier:  (212) 492-0064

 

Borrower:

 

The New York Times
Building LLC

c/o FC Lion LLC

One Metro Tech Center North

Attention: General Counsel

Telecopier: (718) 923-8705

 

with a copy to:

 

Kelley Drye & Warren
LLP

101 Park Avenue

New York, New York 10178

Attention: James J. Kirk, Esq.

Telecopier: (212) 808-7897

 

and

 

The New York Times
Company

229 West 43rd Street

New York, New York 10036

Attention:       Anthony Benten, David Thurm
and

Kenneth A. Richieri, Esq.

Telecopier:         (212) 556-1646 (Mr.
Benten) and 

(212) 556-4634 (Mr. Thurm and Mr. Richieri)

 

FC Member:

 

12

 

FC Lion LLC

One Metro Tech Center North

Attention: General Counsel

Telecopier: (718) 923-8705

 

with a copy to:

 

Kelley Drye & Warren
LLP

101 Park Avenue

New York, New York 10178

Attention: James J. Kirk, Esq.

Telecopier: (212) 808-7897

 

If to Bank:

 

[                                                     ]

[                                                     ]

[                                                     ]

[                                                     ]

 

(b)                                 Any
party may change the entity, address or the attention party to which any such
request, notice, report, demand or other communication is to be given by
furnishing notice of such change to the other parties in the manner specified
above.  Without the prior consent of
Agent, none of the Pledgors may add any other parties to these notice
provisions.  Rejection or refusal to
accept, or inability to deliver because of changed address when no notice of
changed address was given shall be deemed to be receipt of any such notice.

 

(c)                                  Unless
notified to the contrary pursuant to this Section 17, any notice or
communication made to any Lender shall be made only to Agent and its counsel as
provided in this Section.

 

18.  Fees.  Bank agrees not to charge any fees in connection with the
Security Deposit Accounts or its services hereunder.

 

19.  Headings.  The headings of the Articles, Sections and subsections of this
Agreement are for the convenience of reference only, are not to be considered a
part hereof and shall not limit or otherwise affect any of the terms hereof.  All references in this Agreement to
Sections, subsections and other divisions are references to the Sections,
subsections and divisions of this Agreement unless otherwise stated.

 

20.  Invalid Provisions to Affect No Others.  If fulfillment of any provision hereof or
any transaction related hereto at the time performance of such provisions shall
be due, shall involve transcending the limit of validity presently prescribed
by law, with regard to obligations of like character and amount, then, ipso
facto, the obligation to be fulfilled shall be reduced to the limit of such
validity; and if any clause or provision herein contained operates or would
prospectively operate to invalidate this Agreement in whole or in part, then
such clause or provision only shall be held for naught, as though 

 

13

 

not herein contained, and
the remainder of this Agreement shall remain operative and in full force and
effect.

 

21.  UCC Matters.  Pledgors acknowledge and Bank represents
that each of the Security Deposit Accounts is a “deposit account” as defined in
Section 9-102(29) of the UCC.  In
connection therewith:

 

(a)                                  Bank
represents that it is an organization that is engaged in the business of
banking and therefore is a “bank” within the meaning of Section 9-102(8)
of the UCC.

 

(b)                                 Except
to the extent provided in Section 12 hereof, Bank subordinates any
security interest in the Collateral which Bank has or may have to the security
interest of Agent in the Collateral.

 

(c)                                  Subject
to the provisions of Sections 3 and 5 hereof, Bank agrees to follow the
directions originated by Agent with respect to the Collateral without further
consent of any Pledgor.

 

(d)                                 Bank
represents that the Bank’s “jurisdiction” (as determined by the rules set forth
in Section 9-304(b) of the UCC) is New York.

 

22.  Interpretation.  Whenever the singular or plural number, or
the masculine, feminine or neuter gender is used herein, it shall equally
include the other.  The words “hereof,”
“herein” and “hereunder” and words of similar import when used in this
Agreement shall refer to this Agreement as a whole and not to any particular
provision of this Agreement.

 

23.  Computation of Time Periods.  In this Agreement, with respect to the
computation of periods of time from a specified date to a later specified date,
the word “from” means both “from and including” and the words “to” and “until”
both mean “to but excluding.”

 

24.  Entire Agreement.  This Agreement and the other Loan Documents
embody the entire agreement and understanding between the parties with respect
to the Loans and supersede all other prior agreements and understandings,
whether oral or written, relating to the subject matter hereof and thereof,
except as specifically agreed to the contrary.

 

14

 

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

 

 

	
   

  	
  [                              ],
  as Bank

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  GMAC COMMERCIAL
  MORTGAGE

  
	
   

  	
  CORPORATION, as Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  THE NEW YORK TIMES
  BUILDING LLC,

  
	
   

  	
  as Borrower

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  FC Lion LLC, member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  FC 41st
  Street Associates, LLC, its managing member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  RRG 8 South, Inc., its
  managing

  member

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  NYT Real Estate Company
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  FC LION LLC, as FC
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  FC 41st
  Street Associates, LLC, its managing member

  
											

 

 

	
   

  	
   

  	
  By:

  	
  RRG 8 South, Inc., its
  managing

  member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  

 

 

EXHIBIT
A

 

Payment
Instruction Notice

 

Tenant Name:

Lease Agreement
(“Lease”):

Leased Premises:

 

Please take notice that
your landlord under the above-referenced Lease has selected
                  
(“Bank”) as the financial depository which will hold all security deposits
under your Lease and to which such security deposits are to be sent.

 

You are hereby directed
and instructed to send all security deposit payments due to your landlord under
your Lease in accordance with the instructions set forth in this letter,
notwithstanding any provision of your Lease to the contrary.

 

All security deposits
(other than letters of credit) should be made payable to the account specified
below:

 

Account Name: [The New
York Times Building LLC] [FC Lion LLC] Security Deposit Account - GMAC
Commercial Mortgage Corporation, as agent and secured party

Account Number: #

 

Bank has agreed to accept
your payments by any of the following means, to the extent permitted by the
Lease:

 

•                  U.S.
Dollar denomination checks mailed to Bank

•                  U.S.
Dollar denomination wire transfers to the landlord’s designated Bank account

•                  Automated
Clearing House (ACH) credits to the landlord’s designated account at Bank

•                  Letters
of Credit

 

If you elect to make
payments by check, Bank will collect upon your check by using a check
truncation process. This means that Bank will convert your paper check into an
electronic debit which will be presented for payment at your bank the next
business day.  Your physical check will
not be presented to your bank nor returned to you by your bank with your bank
account statement.  Your bank statement,
however, will reflect the check number and the amount electronically presented
by Bank to your bank, thereby indicating that the check has been presented and
paid.

 

The address for mailing
checks and letters of credit to Bank is:

 

[                  ]

[                  ]

[                  ]

[                  ]

 

Should you wish to
arrange payment by wire transfer or ACH credit, please contact Bank at
                              
and ask for
                                .

 

A-1

 

These payment
instructions have been implemented as part of a credit facility provided to
your landlord by GMAC Commercial Mortgage Corporation (“GMACCM”).  You are to continue making all payments in
accordance with these instructions until you receive further written
instructions signed by landlord and GMACCM (or its successor as agent).

 

Neither GMACCM nor Bank
have assumed any obligations of your landlord under the Lease.  Therefore, you should continue to send all
communications regarding the Lease or landlord issues in the manner specified
in your lease and not to GMACCM or Bank.   Any notices which you send to GMACCM or Bank and not to the
parties specified in your lease will not be effective notice to your landlord
under the Lease.

 

	
  Very truly yours,

  
	
   

  
	
  [Landlord signature]

  
	
   

  
	
  Dated:

  	
   

  	
   

  

 

 

ACKNOWLEDGED BY:

 

	
  Tenant’s Name:

  	
   

  	
   

  
	
  Authorized Signature:

  	
   

  	
   

  
	
  Name & Title of
  Person Signing:

  	
   

  	
   

  
					

 

A-2

 

EXHIBIT
B

 

CERTIFICATE
OF AUTHORITY

IDENTIFYING AUTHORIZED REPRESENTATIVES

 

I,
the undersigned officer of The New York Times Building LLC
hereby certify to Bank that each of the following persons named below has been
duly authorized by it to act for it and exercise all authority conveyed to an
“Authorized Representative” under the Security Deposit Accounts Agreement dated
                    
among The New York Times Building LLC, FC Lion LLC and GMAC Commercial Mortgage
Corporation, as agent, that each person holds the title set forth opposite his
or her name, and that the specimen signatures set forth opposite the name of
each such person is his or her genuine signature:

 

AUTHORIZED
REPRESENTATIVES

 

	
  Name

  	
   

  	
  Title

  	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

I further confirm that
Bank may rely on the effectiveness of this Certificate until Bank receives
written notice from The New York Times Building LLC to the contrary (and has
had a reasonable opportunity to act upon such written notice).

 

IN WITNESS WHEREOF, I
have executed this Certificate this
           day of
                                        ,
            .

 

	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

C-1

 

I,
the undersigned officer of FC Lion LLC hereby certify to Bank
that each of the following persons named below has been duly authorized by it
to act for it and exercise all authority conveyed to an “Authorized Representative”
under the Security Deposit Accounts Agreement dated
                    
among The New York Times Building LLC, FC Lion LLC, GMAC Commercial Mortgage
Corporation, as agent, and Bank, that each person holds the title set forth
opposite his or her name, and that the specimen signatures set forth opposite
the name of each such person is his or her genuine signature:

 

AUTHORIZED
REPRESENTATIVES

 

	
  Name

  	
   

  	
  Title

  	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

I further confirm that
Bank may rely on the effectiveness of this Certificate until Bank receives
written notice from FC Lion LLC to the contrary (and has had a reasonable
opportunity to act upon such written notice).

 

IN WITNESS WHEREOF, I
have executed this Certificate this
           day of
                                        ,
            .

 

	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

2

 

Exhibit T

 

Collection
Accounts Agreement

 

T - 1

 

COLLECTION
ACCOUNTS AND SECURITY AGREEMENT

 

THIS COLLECTION ACCOUNTS
AND SECURITY AGREEMENT, dated as of
              
    , 200   (this “Agreement”), among
[             ],
a
                                    
having an address at
                                      
(“Bank”), THE NEW YORK TIMES
BUILDING LLC, a New York limited liability company (“Borrower”) and FC LION LLC, a New York limited liability
company (“FC Member”), each having
an address at One MetroTech Center North, Brooklyn, New York 11201 (Borrower
and FC Member collectively, the (“Pledgors”)
and GMAC COMMERCIAL MORTGAGE CORPORATION, a California corporation and any
successors thereto, as agent (including as successor to Initial Agent (as
hereinafter defined)) (including any of its successors and assigns as agent, “Agent”) for itself and any other co-lenders
as may exist from time to time (such lenders collectively, including any
successors and assigns, “Lenders”
and each individually, a “Lender”).

 

W
I T N E S S E T H:

 

WHEREAS, Borrower, New
York State Urban Development Corporation d/b/a Empire State Development
Corporation, as initial agent (“Initial Agent”),
for itself and for the benefit of Lenders, and Agent, for itself and on behalf
of Lenders, are entering into that certain Building Loan Agreement and that
certain Project Loan Agreement, each dated as of the date hereof (as the same
may be revised, restated, amended or modified, the “Loan Agreements”; capitalized terms not otherwise defined
herein shall have the respective meanings specified in the Loan Agreements),
pursuant to which the Lenders are making the Loans to Borrower; and

 

WHEREAS, one of the conditions
precedent to the obligations of the Lenders under the Loan Agreements is that
the Pledgors provide for the payment of Rents into one or more accounts
established by Pledgors with Bank which account(s) will be maintained for the
benefit of Agent and Lenders.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the foregoing, and for other good and valuable consideration,
the receipt and sufficiency of which hereby are acknowledged, the parties
hereto agree as follows:

 

1.                                       Accounts.  (a) This Agreement applies to the accounts
identified below that have been established at Bank by the applicable Pledgor
for the benefit of Agent and Lenders:

 

 

	
  Description
  of Accounts

  	
   

  	
  Account
  Numbers

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Account Name:
  The New York Times Building LLC Collection Account — GMAC Commercial Mortgage
  Corporation, as agent and secured party Account Type:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Account Name: FC
  Lion LLC Collection Account — GMAC Commercial Mortgage Corporation, as agent
  and secured party Account Type:

  	
   

  	
   

  	
   

  

 

The accounts identified
above shall be collectively referred to herein as the “Collection Accounts”.  No Pledgor shall cancel or cause any of the
Collection Accounts to be canceled, nor shall any Pledgor establish any other
account with Bank or any other bank, mutual fund, investment banking firm or
similar institution into which any Rents (other than security deposits) shall
be deposited.

 

(b)                                 Each
Pledgor shall deposit, or cause to be deposited, in the applicable Collection
Account, all Rents (other than security deposits) paid to or for the benefit of
such Pledgor.  Such Rents shall be made
in the lawful currency of the United States of America, and shall be payable to
the applicable Collection Account and shall be delivered directly by the payor to
Bank.  If either of the Pledgors (or any
leasing or managing agent) shall receive any Rents (other than a security
deposit), that is not payable in the foregoing manner, such Pledgor(s) shall
(and shall cause leasing and managing Agent to) deposit such Rents into the
applicable Collection Account by the close of business on the second Business
Day following the day on which the same is received by such Pledgor (or leasing
or managing agent).  In the absence of
instructions from the payor or a Pledgor as to which account any amounts shall
be deposited to, Bank shall notify the Pledgors and request such instructions,
and in the meantime, Bank may refuse to accept delivery of such amounts until
such instructions are received from such payor or Pledgor.

 

(c)                                  The
applicable Pledgor shall provide the notice set forth on Exhibit A attached hereto to each party to
a Lease as each Lease is executed (or, if such Lease has previously been
executed, then immediately).  The
applicable Pledgor shall obtain the acknowledgment of its Tenants to such notice.
If the applicable Pledgor fails to provide any such notice or obtain such
acknowledgement, or if any Event of Default has occurred and is continuing,
Agent shall have the right (and without prejudice to Agent’s rights with
respect to such failures or Event of Default ) to direct such parties to remit
all Rents, other than security deposits, directly into the applicable
Collection Account by issuing a notice as Agent deems appropriate.  Each of the Pledgors hereby grants to Agent
a power of attorney to sign and deliver the foregoing notices, which power of
attorney shall be deemed coupled with an interest and irrevocable until the
Indebtedness has been paid in full, and each Pledgor directs all applicable
Tenants (and any successor to the interest of any such Tenant) under the
applicable Leases to follow any such instructions given by Agent,
notwithstanding any contrary instructions from any Pledgor and without any
obligation or right on the Tenant’s part to determine the actual existence 

 

2

 

of an Event of Default or other event claimed by Agent as the basis for
Agent’s right to send such notice.

 

(d)                                 No
modifications or revocations of any notice given by any Pledgor pursuant to
clause (c) above are permitted without Agent’s prior written approval, which
approval shall not be unreasonably withheld or delayed.  Upon Agent’s request from time to time, each
Pledgor will certify in writing that it has sent a notice to all applicable
Tenants or otherwise demonstrate to Agent’s satisfaction that notices have been
issued to all applicable Tenants.

 

(e)                                  Upon
Agent’s request from time to time, each Pledgor shall provide a written
statement to Agent itemizing the amounts deposited in its Collection Account
for the period covered by Agent’s request and such supporting documentation as
Agent reasonably may require.

 

(f)                                    Each
of the Pledgors represents and warrants that (i) this Agreement creates a
valid, first priority security interest in all of its rights in the Collateral
(as defined below), (ii) as of the date hereof, except for the security
interest created by this Agreement, the Collection Accounts are free from any
Lien, or other right, title and interest of any other person or party and (iii)
the exact legal name and state of formation of each Pledgor are as set forth on
page one hereof.  Except as permitted
hereunder, no Pledgor shall sell, transfer, encumber, hypothecate or otherwise
dispose of, or grant any option with respect to, the Collateral, or create or
permit to exist any Lien upon the Collateral.

 

(g)                                 The
Collection Accounts shall not be evidenced by a certificate of deposit,
passbook or other instrument.

 

(h)                                 Account
balances shall accrue interest at a savings account rate (or a money market
rate, but only to the extent that the Collection Accounts can remain “deposit
accounts” (as defined in the UCC) notwithstanding the giving of a money market
rate) for accounts denominated in U.S. dollars and interest shall be credited
by Bank to the applicable Collection Account not later than the fifth (5th)
Business Day of the month immediately following the month for which accrued
interest is being credited.  Interest
accruing on each of the Collection Accounts shall be periodically added to the
principal amount of the corresponding Collection Account.

 

(i)                                     Each
Pledgor acknowledges and agrees that neither it, nor any other party claiming
on behalf of, or through, it, shall have any right, title or interest, whether
express or implied, in the Collection Accounts, or to withdraw or make use of
any amounts from any Collection Account except to the extent expressly
permitted by Section 5 hereof.

 

2.                                       Pledge
of the Collateral.

 

(a)                                  To
secure the full payment of the Indebtedness and the performance of the
Obligations, each Pledgor hereby sells, conveys, assigns, transfers and grants
a first priority continuing security interest in, pledges and sets over unto 

 

3

 

Agent, for Agent’s own benefit and the benefit of Lenders, all of its
right, title and interest, whether now owned or hereafter acquired or
arising,  in and to each Collection
Account and all interest, dividends, credits and proceeds relating thereto and
all monies, checks and other similar instruments held or deposited therein
(collectively, the “Collateral”):

 

(b)                                 Bank
acknowledges that this Agreement constitutes notice of Agent’s security
interest in the Collateral and hereby acknowledges and consents thereto.

 

(c)                                  Pledgors
hereby authorize Agent to file UCC financing statements describing the
Collateral and evidencing and perfecting the security interest in the Collateral
granted to Agent pursuant to this Agreement and to file any other UCC financing
statements reasonably necessary or advisable to accomplish the purposes of this
Agreement.

 

3.                                       Control
of the Collateral.  If Agent
delivers to Bank a Notice of Exclusive Control (as hereinafter defined) and
until such time as such Notice of Exclusive Control is rescinded in writing by
Agent, Bank will comply with any directions originated by Agent concerning the
Collection Accounts and the other Collateral without further consent by any
Pledgor.  Agent may exercise any rights
and powers under or in connection with this Agreement and the Collateral
without further consent of any of the Pledgors.  Subject to the foregoing, Bank shall also comply with entitlement
orders or other directions concerning the Collection Accounts and the other
Collateral originated by any of the Pledgors or their Authorized
Representatives (as defined in Section 5(b) below), until such time as
Agent delivers a written notice to Bank (with copies to Pledgors) that Agent is
thereby exercising exclusive control over the Collection Accounts and the other
Collateral.  Such notice is referred to
herein as the “Notice of Exclusive Control”.  After Bank receives a Notice of Exclusive
Control (and so long as such Notice of Exclusive Control has not been rescinded
in writing by Agent), it will cease complying with entitlement orders or other
directions concerning the Collection Accounts and the other Collateral
originated by any Pledgor or any of its Authorized Representatives and will
comply solely with entitlement orders or other directions concerning the
Collection Accounts and the other Collateral originated by Agent.  As between Pledgors and Agent, Agent agrees
to give a Notice of Exclusive Control only if a Noticed Default or an Event of
Default has occurred and is continuing.

 

4.                                       Agency.  (a) Agent hereby appoints Bank as Agent’s
agent, bailee and pledgee and pledgee-in-possession for the Collateral, and
Bank, by its execution and delivery of this Agreement, hereby accepts such
appointment and agrees to be bound by the terms of this Agreement.  Each of the Pledgors hereby agrees to such
appointment of Bank.

 

(b)                                 Bank
agrees that all cash and other property held in the Collection Accounts shall
be segregated from all other cash and property held by Bank and shall be
identified as being held in trust pursuant to this Agreement.  Segregation will be accomplished by
appropriate identification of the cash or other property held in trust 

 

4

 

on the books and records of Bank. 
Bank agrees not to commingle the amounts held in, or designated for
deposit in, the Collection Accounts with any other amounts held on behalf of
Agent, Pledgors or any other party.

 

5.                                       Withdrawals.  (a) 
So long as a Notice of Exclusive Control is not in effect, and as
between Pledgors and Agent, and without any right, duty or obligation on the
part of Bank to verify compliance by Pledgors with this Section 5(a),
Pledgors may utilize funds in the Collection Accounts solely for the purposes
of (i) paying Project Loan Costs, Building Loan Costs and operating expenses,
and any and all costs, expenses, fees, taxes and other amounts from time to
time incurred, or to be incurred within the next thirty (30) days thereafter,
with respect to the Property or the Project or (ii) paying principal and
interest payable with respect to the Loans or Extension Loan, whether or not
due and payable; provided, however, that if Substantial Completion has been
achieved, and at the time in question the Pro Forma Debt Service Coverage
exceeds 1.30:1:00, the applicable Pledgor may withdraw amounts from its
respective Collection Account and distribute such amounts to its respective
members.  The applicable Pledgor shall
provide evidence to Agent, on Agent’s request, of the proper application of
such funds.  Upon the delivery of a
Notice of Exclusive Control, the rights conferred upon the Pledgors pursuant to
this Section shall immediately and automatically terminate without further
action being required of Agent, Bank or any Pledgor; provided, however, that if
a Notice of Exclusive Control is in effect (and no Event of Default exists), at
the request of Borrower, Agent will apply amounts on deposit in the Collection
Accounts to cure any Noticed Default or Defaults (to the extent the same can be
cured with the payment of money) and to allow Borrower to comply with its
obligations under the Loan Documents.

 

(b)                                 Each
Pledgor agrees to designate a limited number of persons who have authority to
issue or deliver withdrawal, transfer or disbursement instructions to Bank
(each such person, an “Authorized
Representative”).  The
initial list of Authorized Representatives for each Pledgor and samples of
their respective genuine signatures is attached hereto as Exhibit B (“Certificate of Authority”). 
Each of the Pledgors may, from time to time, amend its then current list
of Authorized Representatives by sending an amendment to, or replacement of,
the Certificate of Authority, in each case to be substantially in the form of Exhibit B and signed by a Secretary,
Assistant Secretary or other duly authorized officer of the applicable
Pledgor.  Bank will be authorized to
rely and act upon all instructions given or purported to be given by an Authorized
Representative of a Pledgor, provided that (i) in the case of written
instructions, such written instructions bear the original signature, facsimile
signature or electronic signature of an Authorized Representative which
resembles the specimen signature for such Authorized Representative on file
with Bank; and (ii) in the case of electronically transmitted instructions, the
person providing the instruction uses a security code or other authentication
procedure provided by Bank for such Pledgor’s use.  Unless an expiration date is expressly stated in the Certificate
of Authority, all authorizations shall continue in full force and effect until
canceled or superseded by a subsequent Certificate of Authority received by
Bank with reasonable opportunity to act thereon.

 

5

 

6.                                       Bank’s
Obligations with respect to the Collateral.

 

(a)                                  The
parties agree that items deposited in the Collection Accounts shall be deemed
to bear the valid and legally binding endorsement of the payee and to comply
with all of Bank’s requirements for the supplying of missing endorsements, now
or hereafter in effect.  As between
Pledgors and Agent, any deposit made by or on behalf of any Pledgor into the
applicable Collection Account shall be deemed deposited into such Collection
Account when the funds in respect of such deposit shall become collected funds.

 

(b)                                 Notwithstanding
anything to the contrary herein, each of the Pledgors acknowledges that it is
responsible for monitoring the sufficiency of funds deposited its respective
Collection Account and that each is liable for any deficiency in available
funds necessary to cover disbursements and fees to Bank, irrespective of
whether it has received any account statement, notice or demand from Agent or
Bank. If on any day there are insufficient amounts in the applicable Collection
Account necessary to cover disbursements and fees to Bank, the applicable
Pledgor shall immediately deposit into the applicable Collection Account,
without the need for any notice or demand from Agent or Bank, the amount of
such deficiency in immediately available funds.

 

(c)                                  Availability
of cash credited to the applicable Collection Account shall be subject to
checks, drafts or other demand instruments having cleared deposit.  If withdrawal instructions for wire
transfers are received (i) at or before 2:00 p.m. eastern time on a Business
Day, payment of the amount withdrawn shall be made to or for the benefit of the
applicable Pledgor by wire transfer on the same Business Day, or (ii) after
2:00 p.m. eastern time on a Business Day, payment of the amount withdrawn shall
be made to or for the benefit of the applicable Pledgor by wire transfer on the
next Business Day.

 

7.                                       No
Other Assignments.  Bank represents
and warrants to Agent that no other notices of control, assignment, grant of
security interest or Lien of any kind in respect of the Collateral are
reflected in Bank’s records concerning the Collateral.  Bank hereby agrees that any such notice of
control, assignment, grant of security interest, or Lien of any kind in respect
of the Collateral that it receives, including the notice conferred by this
Agreement, will be recorded in Bank’s records concerning the Collateral and
Bank will immediately notify Agent upon receipt thereof.  Bank agrees not to allow any person or
entity other than Agent and Bank (to the extent permitted in Section 12
below) to withdraw amounts from the Collection Accounts (it being acknowledged,
however, that Pledgors have the rights to utilize funds in the Collateral
Accounts to the extent provided in Sections 3 and 5 hereof).

 

8.                                       Actions
With Respect to the Collateral Following an Event of Default.

 

(a)                                  At
all times after Bank’s receipt of a Notice of Exclusive Control, and until Bank
has received notice from Agent that such Notice of Exclusive 

 

6

 

Control has been rescinded, Bank shall solely follow the written
instructions of Agent as to the Collateral, including amounts from time to time
on deposit in the Collection Accounts, without further consent of any of the
Pledgors, and Agent shall be irrevocably entitled to exercise any and all
rights and remedies in respect of or in connection with the Collateral provided
to Agent under the Loan Agreements or any other Security Document or otherwise
available in equity or under applicable law, without further consent or
instructions from any of the Pledgors. 
Each of the Pledgors agrees that Bank may act as the agent of Agent in
exercising, as to any funds or other property from time to time consisting of
Collateral, any rights of set-off provided by the Loan Agreements or any other Loan
Document or otherwise available in equity or under applicable law, without
further consent or instructions from any Pledgor.

 

(b)                                 Upon
the occurrence and during the continuance of an Event of Default, Agent may,
without notice of any kind, except for notices required by law which may not be
waived (in addition to any other rights or remedies under this Agreement, at
law or in equity or otherwise, but subject to the provisions of applicable law)
retain for its own account or otherwise sell or dispose of all or any portion
of the Collateral in one or more public or private sales, and, in each case,
apply such proceeds in accordance with the Loan Documents.  In addition to the rights, powers and
remedies granted to it under this Agreement and in any other Loan Document,
Agent shall have all the rights, powers and remedies available at law or in
equity, including, without limitation, the rights and remedies of a secured
party under the applicable Uniform Commercial Code.  To the extent permitted by law, each of the Pledgors waives
presentment, demand, protest and all notices of any kind and all claims,
damages and demands it may acquire against the Agent or any Lender arising out
of the exercise by them of any rights hereunder, except for claims, damages or
demands arising from the gross negligence or willful misconduct of Agent or any
Lender.

 

(c)                                  Effective
during the continuance of an Event of Default, each Pledgor hereby irrevocably
constitutes and appoints Agent and any officer or agent of Agent, with full
power of substitution, as its true and lawful attorney-in-fact with full
irrevocable power and authority in the place and stead of each Pledgor and in
the name of each Pledgor or in Agent’s own name, from time to time in Agent’s
discretion, for the purpose of carrying out the terms of this Agreement, to
take any and all appropriate action and to execute any and all documents and
instruments which may be necessary or desirable to accomplish the purposes of
this Agreement, including, without limitation, any financing statements,
endorsements, assignments or other instruments of transfer.

 

9.                                       Information.  (a) 
Bank shall provide to the applicable Pledgor and Agent a periodic
statement setting forth all deposits, withdrawals, and account service charges,
if any, with respect to each Collection Account.  Such periodic statements will be issued on a monthly or quarterly
basis, depending on activity, but not more frequently than once per month.  Any Pledgor or Agent may request more
frequent statements in which case Bank may assess such Pledgor for the
applicable account service charge.

 

(b)                                 Each
Pledgor acknowledges its duty to promptly examine each periodic statement
issued to it by Bank and to use reasonable care to discover any 

 

7

 

errors or unauthorized transactions charged to, or affecting, the
Collection Accounts.  Should such
Pledgor fail to send written objections or exceptions to Bank with respect to a
periodic statement within sixty (60) days of the date such statement is issued,
such Pledgor shall be deemed to have approved such statement, and, as against
such Pledgor, such statement shall be presumed to be correct for all purposes
with respect to all information set forth therein.  The foregoing shall not be construed to limit, in any respect,
Bank’s right to correct any error it discovers with respect to the Collection
Accounts or to withdraw from the Collection Accounts cash or other property
deposited therein by Bank in error.

 

10.                                 Certain
Matters Affecting the Bank. 
Pledgors and Agent agree that:

 

(a)                                  Bank
shall be entitled to rely upon, and shall be protected in acting or refraining
from acting upon, any written notice, certificate or other document or
communication (including, without limitation, facsimiles thereof) believed by
it to be genuine and to have been signed, presented or delivered by the proper
party or parties, and Bank may rely on statements contained therein without
further inquiry or investigation.  Bank
shall have no obligation to review or confirm that actions it is requested to take
pursuant to any such notice comply with any agreement or document other than
this Agreement.

 

(b)                                 Bank
shall be entitled to rely, and shall be protected in acting or refraining from
acting, without independent investigation or any further consent or instructions
from any Pledgor, upon any written notice received from Agent to the effect
that an Event of Default has occurred or has ceased to exist or that any action
requested by Agent to disburse funds from the Collection Accounts or other
Collateral or exercise Agent’s set-off rights against the Collateral is
permitted under the Loan Agreements, any other Loan Document and/or in equity
or under applicable law.

 

(c)                                  The
duties and obligations of Bank shall be determined solely by the express
provisions of this Agreement, and, except as expressly set forth herein, Bank
will not be charged with knowledge of any provisions of the Loan Agreements or
any other Loan Documents.  Bank shall
not be liable except for the performance of its duties and obligations as are
specifically set forth in this Agreement, except to the extent any claims,
losses, damages, expenses or other liabilities are caused by the gross
negligence or willful or intentional misconduct of Bank, and no implied
covenants or obligations, except those that may be implied by law, shall be
read into this Agreement against Bank. 
Without limiting the foregoing: Bank shall have no investment
responsibility with respect to the cash or other property held in the Collateral
except as specifically set forth herein; shall not be accountable for the use
or application by any Pledgor or any other identified party of any money paid
over by Bank in accordance with this Agreement; and shall have no
responsibility for taking any steps to preserve rights against any parties with
respect to any property held hereunder.

 

(d)                                 Bank
shall have no liability for any loss occasioned by delay in the actual receipt
of notice or other instructions to Bank of any payment, 

 

8

 

disbursement or any other transaction regarding the Collateral, nor
shall Bank be liable for any claims, losses, damages, expenses or other
liabilities, other than to the extent the same may be caused by the gross
negligence or willful or intentional misconduct of Bank.  Under no circumstance whatsoever will Bank
be liable for any lost profits or for any incidental, special, consequential or
punitive damages whether or not Bank knew of the possibility or likelihood of
such damages and regardless of the form of action in which any such loss or
damage may be claimed.  Bank’s
substantial compliance with its standard procedures for provision of the
services required under this Agreement shall be deemed to constitute its
exercise of reasonable care.

 

(e)                                  If
any Pledgor becomes subject to a voluntary or involuntary proceeding under the
United States Bankruptcy Code, or if Bank is otherwise served with legal
process which Bank in good faith believes affects the Collateral, or if at any
time Bank receives conflicting instructions with respect to any action it is requested
to take under this Agreement, Bank shall have the right to place a hold on
funds deposited in the Collection Accounts until such time as Bank receives an
appropriate court order or other assurances satisfactory to Bank establishing
that the funds may continue to be disbursed according to the instructions
contained in this Agreement.

 

11.                                 Irrevocable
Agreement.  Pledgors acknowledge
that the agreements made by it and the conveyances and authorizations made and
granted by it herein are irrevocable and that the conveyances and
authorizations made and granted herein constitute powers coupled with an
interest.

 

12.                                 Waiver
of Set-off Rights by Bank.  Bank
hereby waives, with respect to all existing and future claims it may have
against Pledgors, all rights of set-off and banker’s liens which it may now or
hereafter have against the Collateral and all items (and proceeds thereof) that
come into the possession of Bank in connection with the Collateral, except,
without further consent from Pledgors or Agent, to the extent Bank is unable to
obtain payment from Pledgors and to the extent permitted by applicable law,
rights of set-off and banker’s liens arising in connection with (i) items
deposited in the Collection Accounts that are subsequently returned to Bank
unpaid for insufficient funds or if such amount is otherwise uncollectible by
Bank, including without limitation by any “stop payment order” having been
applied to such item, (ii) any fees due to Bank or charges incurred by Bank in
connection with its deposit or collection attempts (provided such amounts are
not in excess of the fees or charges Bank regularly and customarily charges its
customers with respect thereto), (iii) the amount represented by such
uncollectible item if such item has actually been paid by Bank to Pledgors
prior to Bank’s collection thereof, (iv) unpaid fees and expenses with respect
to the Collateral that are charged to any of the Pledgors by Bank in the normal
course of business for the Collateral and (v) any funds or items deposited in
the Collection Accounts in error or as necessary to correct processing errors
(and Bank shall have the right to withdraw from the Collection Accounts funds
or other items deposited in error without further consent from Pledgors or
Agent).

 

13.                                 Miscellaneous.  This Agreement shall supersede any other
agreement (to the extent conflicting herewith) relating to the matters referred
to herein, 

 

9

 

including any other
account agreement between either Pledgor and Bank.  This Agreement is binding upon the parties hereto and their
respective successors and assigns (including any trustee of either Pledgor
appointed or elected in any action under the United States Bankruptcy Code) and
shall inure to their benefit.  This
Agreement may not be changed, amended, modified or waived orally, but only by
an instrument in writing signed by each of the parties hereto, provided that
such instrument need by signed only by Bank and Agent if it does not change any
rights or obligations of Pledgors hereunder. 
This Agreement shall be governed by, and interpreted in accordance with,
the laws of the State of New York applicable to contracts made and performed
solely within such State, except with regard to payment of checks and other
items and other issues relating to the operations of the Collection Accounts or
any other account to which funds from the Collection Accounts are transferred,
which issues shall be interpreted and enforced according to the laws of the
state where the Collection Accounts or such other account are located.  This Agreement may be executed in any number
of counterparts which together shall constitute one and the same
instrument.  Pledgors may not assign
this Agreement without the prior approval of Agent.  Agent may assign this Agreement in conformance with
Section 11.05 of the Loan Agreements. 
Bank may assign this Agreement with the prior approval of Agent, and
notice thereof shall be given to Pledgors.

 

14.                                 Taxes.  Each Pledgor shall deliver promptly to Bank
a duly completed and executed copy of the proper United States Internal Revenue
Service (a) Form W-9 or (b) if a Pledgor is not a United States citizen, Form
1001, Form 4224, Form W-8 or Form 8709 (as applicable), certifying such
Pledgor’s status as a beneficial owner of its Collection Account (within the
meaning of Section 1.1441-1(c)(6) of the Treasury Regulations of the
United States Internal Revenue Tax Code). 
Each of the Pledgors further agrees to provide duly executed and
completed updates of such forms (or applicable successor forms) promptly (but
in any event no later than 10 Business Days) upon Bank’s request therefor, if
Bank notifies such Pledgor that existing forms have expired or become
obsolete.  Each Pledgor shall, on its
own initiative, shall promptly provide (but in any event no later than 10
Business Days) duly executed and completed updates of such forms upon the
occurrence of any event in respect of such Pledgor requiring a change in the
most recent form previously delivered by such Pledgor to Bank.  Each Pledgor shall be responsible for the
payment of all taxes relating to the assets in its Collection Account (other
than taxes with respect to investment earnings retained by Bank in accordance
with this Agreement).

 

15.                                 Termination.  Pledgors may not terminate this Agreement
for any reason without Agent’s prior written consent; provided, however, that
Pledgors may terminate this Agreement for the purpose of using a different
depository bank if (i) Agent approves such replacement depository bank, such
approval not to be unreasonably withheld or delayed and (ii) such replacement
depository bank shall enter into an agreement with Pledgors and Agent
substantially similar to this Agreement. 
This Agreement shall remain in full force and effect until such time as
(a) Agent shall deliver written notice to Bank as to the full and final payment
of all Indebtedness under the Loan Documents and the termination of the Loan
Documents, (b) Agent shall deliver written notice of termination to Pledgors
and Bank at any time for any reason, (c) Bank shall 

 

10

 

deliver written notice of
termination to Pledgors and Agent not less than thirty (30) days prior to the
effective termination date or (d) Borrower shall have replaced Bank with a
replacement depository bank in accordance with the immediately foregoing
sentence.  If Bank so terminates this
Agreement or if Agent so terminates this Agreement but requires that Collection
Accounts with a different depository be established, Agent and Pledgors shall
jointly select a new depository to replace Bank, and thereupon Agent and the
Pledgors shall enter into a new arrangement with such depository substantially
similar to this Agreement.  Bank hereby
agrees that it shall promptly take all reasonable action necessary to facilitate
the transfer of any funds held in the Collection Accounts and items received to
any replacement depository.  All rights
of Bank under Sections 10 and 12 hereof for the period prior to any such
termination shall survive such termination.

 

16.                                 Further
Assurances.  Each Pledgor hereby
covenants and agrees that it shall (i) perform such acts and execute,
acknowledge and deliver, from time to time, such financing statements and other
instruments as may be reasonably required by Agent to perfect or better assure
this Agreement and the security interests created hereby, and file or record
the same in the public records specified by Agent and (ii) upon request of
Agent, execute and deliver all further instruments and documents, and take all
further action, that may be necessary or desirable in Agent’s reasonable
opinion to protect any security interest granted or purported to be granted
hereby, to enable Agent to exercise and enforce its rights and remedies
hereunder with respect to the Collection Accounts and the proceeds thereof or
to effectuate the purpose and intent of this Agreement, provided that the same
do not increase such Pledgor’s liabilities, or decrease such Pledgor’s rights,
under the Loan Documents (other than, in each case, to a de minimis extent).

 

17.                                 Notices.  (i) Any request, notice, report, demand,
approval or other communication permitted or required by this Agreement to be
given or furnished shall be in writing and shall be deemed given or furnished
when addressed to the party intended to receive the same, at the address of such
party as set forth below, (i) when delivered by overnight nationwide commercial
courier service, one (1) Business Day (determined with reference to the
location of the recipient) after the date of delivery to such courier service,
(ii) when personally delivered, if delivered on a Business Day in the place of
receipt and during normal business hours (otherwise on the next occurring
Business Day in such place of receipt) or (iii) when transmitted by telecopy to
the telecopier number set forth below, to the party intended to receive same if
transmitted on a Business Day in the place of receipt and during normal
business hours (and otherwise on the next occurring Business Day in such place
of receipt) and provided that such transmission is confirmed by duplicate
notice in such other manner as permitted above:

 

Agent:

 

GMAC Commercial Mortgage
Corporation

100 South Wacker Drive, Suite 400

Chicago, Illinois 60606

Attention:  Vacys R. Garbonkus

Telecopier:  (312) 917-6131

 

11

 

with a copy to:

 

Paul, Weiss, Rifkind,
Wharton & Garrison LLP

1285 Avenue of the Americas

New York, New York 10019-6064

Attention:  Harris B. Freidus, Esq.

Telecopier:  (212) 492-0064

 

Borrower:

 

The New York Times
Building LLC

c/o FC Lion LLC

One Metro Tech Center North

Attention: General Counsel

Telecopier: (718) 923-8705

 

with a copy to:

 

Kelley Drye & Warren
LLP

101 Park Avenue

New York, New York 10178

Attention: James J. Kirk, Esq.

Telecopier: (212) 808-7897

 

and

 

The New York Times
Company

229 West 43rd Street

New York, New York 10036

Attention:         Anthony Benten, David
Thurm and

Kenneth A. Richieri, Esq.

Telecopier:           (212) 556-1646 (Mr.
Benten) and 

(212) 556-4634 (Mr. Thurm and Mr. Richieri)

 

FC Member:

 

FC Lion LLC

One Metro Tech Center North

Attention: General Counsel

Telecopier: (718) 923-8705

 

with a copy to:

 

Kelley Drye & Warren
LLP

101 Park Avenue

New York, New York 10178

Attention: James J. Kirk, Esq.

Telecopier: (212) 808-7897

 

12

 

If to Bank:

 

[                                                     ]

[                                                     ]

[                                                     ]

[                                                     ]

 

(b)                                 Any
party may change the entity, address or the attention party to which any such
request, notice, report, demand or other communication is to be given by
furnishing notice of such change to the other parties in the manner specified
above.  Without the prior consent of
Agent, none of the Pledgors may add any other parties to these notice
provisions.  Rejection or refusal to
accept, or inability to deliver because of changed address when no notice of
changed address was given shall be deemed to be receipt of any such notice.

 

(c)                                  Unless
notified to the contrary pursuant to this Section 17, any notice or
communication made to any Lender shall be made only to Agent and its counsel as
provided in this Section.

 

18.                                 Fees.  Bank agrees not to charge any fees in
connection with the Collection Accounts or its services hereunder.

 

19.                                 Headings.  The headings of the Articles, Sections and
subsections of this Agreement are for the convenience of reference only, are
not to be considered a part hereof and shall not limit or otherwise affect any
of the terms hereof.  All references in
this Agreement to Sections, subsections and other divisions are references to
the Sections, subsections and divisions of this Agreement unless otherwise
stated.

 

20.                                 Invalid
Provisions to Affect No Others.  If
fulfillment of any provision hereof or any transaction related hereto at the
time performance of such provisions shall be due, shall involve transcending
the limit of validity presently prescribed by law, with regard to obligations
of like character and amount, then, ipso facto, the obligation to be fulfilled
shall be reduced to the limit of such validity; and if any clause or provision
herein contained operates or would prospectively operate to invalidate this
Agreement in whole or in part, then such clause or provision only shall be held
for naught, as though not herein contained, and the remainder of this Agreement
shall remain operative and in full force and effect.

 

21.                                 UCC
Matters.  Pledgors acknowledge and
Bank represents that each of the Collection Accounts is a “deposit account” as
defined in Section 9-102(29) of the UCC. 
In connection therewith:

 

(a)                                  Bank
represents that it is an organization that is engaged in the business of
banking and therefore is a “bank” within the meaning of Section 9-102(8)
of the UCC.

 

13

 

(b)                                 Except
to the extent provided in Section 12 hereof, Bank subordinates any
security interest in the Collateral which Bank has or may have to the security
interest of Agent in the Collateral.

 

(c)                                  Subject
to the provisions of Sections 3 and 5 hereof, Bank agrees to follow the
directions originated by Agent with respect to the Collateral without further
consent of any Pledgor.

 

(d)                                 Bank
represents that the Bank’s “jurisdiction” (as determined by the rules set forth
in Section 9-304(b) of the UCC) is New York.

 

22.                                 Interpretation.  Whenever the singular or plural number, or the
masculine, feminine or neuter gender is used herein, it shall equally include
the other.  The words “hereof,” “herein”
and “hereunder” and words of similar import when used in this Agreement shall
refer to this Agreement as a whole and not to any particular provision of this
Agreement.

 

23.                                 Computation
of Time Periods.  In this Agreement,
with respect to the computation of periods of time from a specified date to a
later specified date, the word “from” means both “from and including” and the
words “to” and “until” both mean “to but excluding.”

 

24.                                 Entire
Agreement.  This Agreement and the
other Loan Documents embody the entire agreement and understanding between the
parties with respect to the Loans and supersede all other prior agreements and
understandings, whether oral or written, relating to the subject matter hereof
and thereof, except as specifically agreed to the contrary.

 

14

 

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

 

 

	
   

  	
  [                             ],
  as Bank

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  GMAC COMMERCIAL
  MORTGAGE

  
	
   

  	
  CORPORATION, as Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE NEW YORK TIMES
  BUILDING LLC,

  
	
   

  	
   

  	
  as Borrower

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  FC Lion LLC, member

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  FC 41st Street
  Associates, LLC, its managing member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  RRG 8 South, Inc., its
  managing

  member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  NYT Real Estate Company
  LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  FC LION LLC, as FC
  Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  FC 41st
  Street Associates, LLC, its managing

  member

  
											

 

 

	
   

  	
   

  	
   

  	
  By:

  	
  RRG 8 South, Inc., its
  managing

  member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  
							

 

 

EXHIBIT
A

 

Payment
Instruction Notice

 

Tenant Name:

Lease Agreement
(“Lease”):

Leased Premises:

 

Please take notice that
your landlord under the above-referenced Lease has selected
                    
(“Bank”) as the financial depository to which all payments of rent under your
Lease are to be sent.

 

You are hereby directed
and instructed to send all rent payments due to your landlord under your Lease
(including, without limitation, base rent and amounts due for operating or
common area expenses) in accordance with the instructions set forth in this
letter, notwithstanding any provision of your Lease to the contrary.

 

All payments under or
with respect to your Lease, other than security deposits, should be made
payable to and sent to:

 

Account Name: [The New
York Times Building LLC] [FC Lion LLC] Collection Account - GMAC Commercial
Mortgage Corporation, as agent and secured party

 

Account Number: #

 

Bank has agreed to accept
your payments by any of the following means:

 

•                  U.S.
Dollar denomination checks mailed to Bank

•                  U.S.
Dollar denomination wire transfers to the landlord’s designated Bank account

•                  Automated
Clearing House (ACH) credits to the landlord’s designated account at Bank

 

If you elect to make
payments by check, Bank will collect upon your check by using a check
truncation process. This means that Bank will convert your paper check into an
electronic debit which will be presented for payment at your bank the next
business day.  Your physical check will
not be presented to your bank nor returned to you by your bank with your bank
account statement.  Your bank statement,
however, will reflect the check number and the amount electronically presented
by Bank to your bank, thereby indicating that the check has been presented and
paid.

 

The address for mailing
checks to Bank is:

 

[                 ]

[                 ]

[                 ]

[                 ]

 

Should you wish to
arrange payment by wire transfer or ACH credit, please contact Bank at
                              
and ask for
                                .

 

A-1

 

These payment
instructions have been implemented as part of a credit facility provided to
your landlord by GMAC Commercial Mortgage Corporation (“GMACCM”).  You are to continue making all payments in
accordance with these instructions until you receive further written
instructions signed by landlord and GMACCM (or its successor as agent).

 

Neither GMACCM nor Bank
have assumed any obligations of your landlord under the Lease.  Therefore, you should continue to send all
communications regarding the Lease or landlord issues in the manner specified
in your lease and not to GMACCM or Bank.   Any notices which you send to GMACCM or Bank and not to the
parties specified in your lease will not be effective notice to your landlord
under the Lease.

 

	
  Very truly yours,

  
	
   

  
	
  [Landlord signature]

  
	
   

  
	
  Dated:

  	
   

  	
   

  

 

 

ACKNOWLEDGED BY:

 

	
  Tenant’s Name:

  	
   

  	
   

  
	
  Authorized Signature:

  	
   

  	
   

  
	
  Name & Title of
  Person Signing:

  	
   

  	
   

  
					

 

A-2

 

EXHIBIT
B

 

CERTIFICATE
OF AUTHORITY

IDENTIFYING AUTHORIZED REPRESENTATIVES

 

I,
the undersigned officer of The New York Times Building LLC
hereby certify to Bank that each of the following persons named below has been
duly authorized by it to act for it and exercise all authority conveyed to an
“Authorized Representative” under the Collection Accounts and Security
Agreement dated                     
among The New York Times Building LLC, FC Lion LLC and GMAC Commercial Mortgage
Corporation, as agent, that each person holds the title set forth opposite his
or her name, and that the specimen signatures set forth opposite the name of
each such person is his or her genuine signature:

 

AUTHORIZED
REPRESENTATIVES

 

	
  Name

  	
   

  	
  Title

  	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

I further confirm that
Bank may rely on the effectiveness of this Certificate until Bank receives
written notice from The New York Times Building LLC to the contrary (and has
had a reasonable opportunity to act upon such written notice).

 

IN WITNESS WHEREOF, I
have executed this Certificate this
           day of
                                        ,
            .

 

	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  
				

 

C-1

 

I,
the undersigned officer of FC Lion LLC hereby certify to Bank
that each of the following persons named below has been duly authorized by it
to act for it and exercise all authority conveyed to an “Authorized
Representative” under the Collection Accounts and Security Agreement dated
                    
among The New York Times Building LLC, FC Lion LLC, GMAC Commercial Mortgage
Corporation, as agent, and Bank, that each person holds the title set forth
opposite his or her name, and that the specimen signatures set forth opposite
the name of each such person is his or her genuine signature:

 

AUTHORIZED
REPRESENTATIVES

 

	
  Name

  	
   

  	
  Title

  	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

I further confirm that
Bank may rely on the effectiveness of this Certificate until Bank receives
written notice from FC Lion LLC to the contrary (and has had a reasonable
opportunity to act upon such written notice).

 

IN WITNESS WHEREOF, I
have executed this Certificate this
           day of
                                        ,
            .

 

	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  
				

 

2

 

Schedule 1

 

Initial Required Equity
Funds Previously Contributed

 

$207,046,237

 

 

S1-1

 

Schedule 2

 

Initial
Advance Interest Rate Cap

 

	
  Period

  	
   

  	
  Rate

  	
   

  
	
  Months
  1-6

  	
   

  	
  3.30

  	
  %

  
	
  Months
  7-12

  	
   

  	
  3.80

  	
  %

  
	
  Months
  13-18

  	
   

  	
  4.60

  	
  %

  
	
  Months
  19-24

  	
   

  	
  5.75

  	
  %

  
	
  Months
  25-30

  	
   

  	
  8.00

  	
  %

  
	
  Months
  31-36

  	
   

  	
  8.25

  	
  %

  
	
  Months
  37-42

  	
   

  	
  9.00

  	
  %

  
	
  Months
  43-48

  	
   

  	
  9.50

  	
  %

  

 

Future
Advance Interest Rate Cap

 

	
  Period

  	
   

  	
  Trigger
  Rate

  	
   

  	
  Rate

  	
   

  
	
  Months
  1-6

  	
   

  	
  3.05

  	
  %

  	
  3.30

  	
  %

  
	
  Months
  7-12

  	
   

  	
  3.55

  	
  %

  	
  3.80

  	
  %

  
	
  Months
  13-18

  	
   

  	
  4.35

  	
  %

  	
  4.60

  	
  %

  
	
  Months
  19-24

  	
   

  	
  5.50

  	
  %

  	
  5.75

  	
  %

  
	
  Months
  25-30

  	
   

  	
  7.75

  	
  %

  	
  8.00

  	
  %

  
	
  Months
  31-36

  	
   

  	
  8.00

  	
  %

  	
  8.25

  	
  %

  
	
  Months
  37-42

  	
   

  	
  8.75

  	
  %

  	
  9.00

  	
  %

  
	
  Months
  43-48

  	
   

  	
  9.25

  	
  %

  	
  9.50

  	
  %

  

 

 

S2-1

 

Schedule 3

 

Availability of Utilities

 

None.

 

S3-1

 

Schedule 4

 

Governmental Approvals
and Third Party Approvals

 

None.

 

S4-1

 

Schedule 5

 

Leases

 

None.

 

S5-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]