Document:

Document

Exhibit 10.1
			
	

AMENDED AND RESTATED
SERIES 2017-VFN NOTE PURCHASE AGREEMENT

Dated as of October 23, 2020

among

USCC RECEIVABLES FUNDING LLC,
as Transferor

USCC MASTER NOTE TRUST,
as Issuer,

USCC SERVICES, LLC,
as Servicer

UNITED STATES CELLULAR CORPORATION,
as Performance Guarantor

THE OWNERS PARTY HERETO,

THE MANAGING AGENTS PARTY HERETO,

and

ROYAL BANK OF CANADA,
as Administrative Agent

_____________________

USCC Master Note Trust
Series 2017-VFN Notes
______________________

			
	

TABLE OF CONTENTS

			
	ARTICLE I DEFINITIONS

	SECTION 1.1    Definitions

	SECTION 1.2    Other Definitional Provisions

	ARTICLE II TERMS OF THE SERIES 2017-VFN NOTES

	SECTION 2.1    Issuance of Series 2017-VFN Notes; Note Principal Balance Increases; Note Principal Balance Reductions

	SECTION 2.2    Reduction, Increase and Extension of Commitments

	SECTION 2.3    Interest, Fees, Expenses, Payments, Etc.

	SECTION 2.4    Requirements of Law

	SECTION 2.5    Taxes

	SECTION 2.6    Indemnification

	SECTION 2.7    Expenses, Etc.

	ARTICLE III CONDITIONS PRECEDENT

	SECTION 3.1    Conditions to Purchase of Series 2017-VFN Notes

	SECTION 3.2    Conditions to Note Principal Balance Increases

	ARTICLE IV REPRESENTATIONS, WARRANTIES AND COVENANTS

	SECTION 4.1    Representations and Warranties of the Servicer, the Transferor and the Issuer

	SECTION 4.2    Additional Representations and Warranties of the Servicer

	SECTION 4.3    Additional Representations and Warranties of the Transferor

	SECTION 4.4    [Reserved]

	SECTION 4.5    Representations and Warranties of the Conduit Purchasers and Committed Purchasers

	SECTION 4.6    Covenants of the Issuer and Transferor

	SECTION 4.7    Covenants of the Servicer

	SECTION 4.8    [Reserved]

	SECTION 4.9    Additional Covenants of the Transferor and the Servicer

	SECTION 4.10    Merger or Consolidation of, or Assumption, of the Obligations of the Transferor or the Seller

	ARTICLE V THE AGENTS

	SECTION 5.1    Appointment

	SECTION 5.2    Delegation of Duties

	SECTION 5.3    Exculpatory Provisions

	SECTION 5.4    Reliance by Agents

	SECTION 5.5    Notices

	SECTION 5.6    Non Reliance on Agents and Other Owners

	SECTION 5.7    Indemnification

	SECTION 5.8    Agents in their Individual Capacity

	SECTION 5.9    Successor Agents.

	SECTION 5.10    Funding Decision

	ARTICLE VI TRANSFERS OF SERIES 2017VFN NOTES

	SECTION 6.1    Transfers of Series 2017VFN Notes

	ARTICLE VII MISCELLANEOUS

	SECTION 7.1    Amendments and Waivers

	SECTION 7.2    Notices

	SECTION 7.3    Confidentiality

	SECTION 7.4    No Waiver; Cumulative Remedies

	SECTION 7.5    Successors and Assigns

	SECTION 7.6    Successors to Servicer

Table of Contents
(continued)

			
	SECTION 7.7    Counterparts

	SECTION 7.8    Severability

	SECTION 7.9    Integration

	SECTION 7.10    Governing Law

	SECTION 7.11    WAIVER OF JURY TRIAL

	SECTION 7.12    Jurisdiction; Consent to Service of Process

	SECTION 7.13    Termination

	SECTION 7.14    Limited Recourse; No Proceedings

	SECTION 7.15    Survival of Representations and Warranties

	SECTION 7.16    No Recourse

	SECTION 7.17    RBC Roles

	SECTION 7.18    USA PATRIOT Act

	SECTION 7.19    Tax Characterization

	SECTION 7.20    Accounting Treatment by Owners

	SECTION 7.21    Collections

	SECTION 7.22    Limitation of Liability; Waiver and Consent

EXHIBITS

EXHIBIT A    FORM OF TRANSFER SUPPLEMENT
EXHIBIT B    FORM OF FUNDING NOTICE
EXHIBIT C    FORM OF COMPLIANCE STATEMENT
EXHIBIT D    FORM OF INVESTMENT LETTER
EXHIBIT E    [RESERVED]
EXHIBIT F    FORM OF INTEREST RATE CAP AGREEMENT
EXHIBIT G    HEDGING REQUIREMENTS

ANNEX

ANNEX I    AGREED-UPON PROCEDURES

SCHEDULES

SCHEDULE I    CONDUIT PURCHASER, COMMITTED PURCHASER, MANAGING AGENTS AND RELATED INFORMATION
SCHEDULE II    NOTICE INFORMATION
SCHEDULE III    ORGANIZATIONAL INFORMATION
SCHEDULE IV    LIST OF CLOSING deliverables

THIS AMENDED AND RESTATED SERIES 2017-VFN NOTE PURCHASE AGREEMENT, dated as of October 23, 2020, is by and among USCC RECEIVABLES FUNDING LLC, a Delaware limited liability company (the “Transferor”), USCC MASTER NOTE TRUST, a Delaware statutory trust (together with its successors and assigns, the “Issuer”), USCC SERVICES, LLC, a Delaware limited liability company (“USCC SERVICES”), as the servicer (in such capacity, the “Servicer”), UNITED STATES CELLULAR CORPORATION (“USCC”), a Delaware corporation, as the performance guarantor under the Performance Guaranty (in such capacity, the “Performance Guarantor”), the Owners (as hereinafter defined) from time to time party hereto, the Managing Agents for the Ownership Groups from time to time party hereto, and ROYAL BANK OF CANADA (“RBC”), as administrative agent for the Owners (together with its successors in such capacity, the “Administrative Agent”).
W I T N E S S E T H:
WHEREAS, the parties hereto have previously entered into that certain Series 2017-VFN Note Purchase Agreement, dated as of December 20, 2017, as amended by that certain Omnibus Amendment No. 1 to Master Indenture, Series 2017-VFN Indenture Supplement, Note Purchase Agreement, Receivables Purchase Agreement, and Transfer and Servicing Agreement, dated as of September 30, 2019 (such agreement, as amended, the “2017 Agreement”); and 
WHEREAS, the parties hereto wish to amend and restate the 2017 Agreement in its entirety to, among other things (i) reflect the Commitment of each of the Ownership Groups pursuant to this Agreement, (ii) extend the Scheduled Commitment Termination Date, and (iii) as otherwise specified herein.
NOW, THEREFORE, in consideration of the mutual covenants herein contained, and other good and valuable consideration, the receipt and adequacy of which are hereby expressly acknowledged, the parties hereto agree as follows:
ARTICLE I
DEFINITIONS
SECTION 1.1Definitions
.  All capitalized terms used herein as defined terms and not defined herein shall have the meanings given to them in Annex A to the Indenture or the Series 2017-VFN Supplement, as applicable, each as in effect on the date of this Agreement and as it may be amended or otherwise modified from time to time.  Each capitalized term defined herein shall relate only to the Series 2017-VFN Notes and to no other Class of Notes issued pursuant to the Indenture.
“2017 Agreement” shall have the meaning specified in the recitals to this Agreement.
“2020 Amendment Closing Date” shall have the meaning specified in Section 2A.1 of this Agreement.
“3MLIBOR” shall mean, with respect to any day during any Interest Period, a rate determined at approximately 11:00 a.m. (London time) equal to the interest rate per annum designated as 3MLIBOR for the related Managing Agent (or its Affiliate) appearing on Reuters Screen LIBOR03 page on the Reuters Service (or such other page as may replace the LIBOR03 page on that service or such other service as may be nominated by ICE, in each case, for the purpose of displaying London interbank offered rates of major banks) as the rate for U.S. dollar deposits for a period comparable to 3-months and in an amount comparable to the applicable portion of the Note Principal Balance to accrue interest by reference to such interest rate.  In the event no rate is so posted, “3MLIBOR” shall mean the arithmetic average (rounded up to only four decimal places) of the rates per annum offered to the principal London office of the related Managing Agent (or if any Managing Agent does not maintain a London office, the principal London office of an Affiliate of such Managing Agent) by three (3) London banks, selected by the Managing Agent in good faith, for U.S. dollar deposits for a period comparable to 3 month and in an amount comparable to the applicable portion of the Note Principal Balance to accrue interest by reference to such interest rate. If fewer than three (3) quotations are provided as requested, the rate for that Interest Period will be the arithmetic mean of the three (3) rates quoted by major banks selected by the related Managing Agent in good faith in New York City for loans in U.S. dollars to leading European banks for a period comparable to such Interest Period, such mean to be calculated by the Indenture Trustee at approximately 11:00 a.m., New York City time, on that day.  For the avoidance of doubt, the Indenture Trustee shall have no obligation to determine any alternative index if LIBOR is not available at the time any such calculation is to be made.  Notwithstanding anything to the contrary in this definition, if a Benchmark Unavailability Period commences and “3MLIBOR” cannot be determined in accordance with at least one of the procedures described above on any day during such Benchmark Unavailability Period, then “3MLIBOR” on each such day shall be the arithmetic average (rounded up to only four decimal places) of 3MLIBOR for each of the three most recent dates of determination.
“Adjusted Commitment” shall mean with respect to any date of determination, with respect to an Owner, such Owner’s Commitment, minus the aggregate outstanding principal amount of its Support Advances to the Conduit Purchasers in its related Ownership Group as of such date.
“Administrative Agent” shall have the meaning specified in the preamble to this Agreement.
“Administrative Agent Fee Letter” shall mean the agreement, dated as of the Original Closing Date, between the Transferor and the Administrative Agent, setting forth certain fees payable by the Transferor to the Administrative Agent.
“Advisors” shall have the meaning specified in Section 7.3(b) of this Agreement.
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“Agent” shall have the meaning specified in Section 5.1(a) of this Agreement.
“Agreement” shall mean this Amended and Restated Series 2017-VFN Note Purchase Agreement, as further amended, restated, supplemented or otherwise modified from time to time.
“Amortization Rate” shall mean 1.00% per annum.
“Anti-Corruption Laws” shall mean all laws, rules, and regulations of any jurisdiction applicable to the Servicer, the Transferor or their respective Subsidiaries from time to time concerning or relating to bribery or corruption, including, without limitation, the Foreign Corrupt Practices Act of 1977, as amended, and any applicable law or regulation implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions.
“Assignee” and “Assignment” shall have the respective meanings specified in Section 6.1(e) of this Agreement.
“Benchmark” shall mean, initially, 3MLIBOR or LIBOR, as applicable; provided, that if a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date have occurred with respect to USD LIBOR, then “Benchmark” means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to Section 2.8(a) of this Agreement.
“Benchmark Replacement” shall mean the sum of: (a) the alternate benchmark rate that has been selected by the Administrative Agent and the Transferor as the replacement for the then-current Benchmark with the consent of the Managing Agents (such consent not to be unreasonably withheld or delayed) giving due consideration to (i) any selection or recommendation of a replacement rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a rate of interest as a replacement for USD LIBOR for U.S. dollar-denominated syndicated credit facilities and (b) the Benchmark Replacement Adjustment; provided, that, if the Benchmark Replacement as so determined would be less than zero, the Benchmark Replacement will be deemed to be zero for the purposes of this Agreement.
“Benchmark Replacement Adjustment” shall mean, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement for each applicable Interest Period, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Transferor with the consent of the Managing Agents (such consent not to be unreasonably withheld or delayed) giving due consideration to (i) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of USD LIBOR with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of USD LIBOR with the applicable Unadjusted Benchmark Replacement for U.S. dollar-denominated syndicated credit facilities at such time.
“Benchmark Replacement Conforming Changes” shall mean, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Interest Period,” timing and frequency of determining rates and making payments of interest and other administrative matters) that the Administrative Agent and the Transferor decide may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent and the Transferor decide that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of the Benchmark Replacement exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement).
“Benchmark Replacement Date” shall mean the earlier to occur of the following events with respect to USD LIBOR:
(1)in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator of USD LIBOR permanently or indefinitely ceases to provide USD LIBOR; or
(2)in the case of clause (3) of the definition of “Benchmark Transition Event,” the date of the public statement or publication of information referenced therein.
“Benchmark Transition Event” shall mean the occurrence of one or more of the following events with respect to USD LIBOR:
(1)a public statement or publication of information by or on behalf of the administrator of USD LIBOR announcing that such administrator has ceased or will cease to provide USD LIBOR permanently or indefinitely, provided, that, at the time of such statement or publication, there is no successor administrator that will continue to provide USD LIBOR;
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(2)a public statement or publication of information by the regulatory supervisor for the administrator of USD LIBOR, the U.S. Federal Reserve System, an insolvency official with jurisdiction over the administrator for USD LIBOR, a resolution authority with jurisdiction over the administrator for USD LIBOR, or a court or an entity with similar insolvency or resolution authority over the administrator for USD LIBOR which states that the administrator of USD LIBOR has ceased or will cease to provide USD LIBOR permanently or indefinitely, provided, that, at the time of such statement or publication, there is no successor administrator that will continue to provide USD LIBOR; or
(3)a public statement or publication of information by the regulatory supervisor for the administrator of USD LIBOR announcing that USD LIBOR is no longer representative.
“Benchmark Transition Start Date” shall mean (a) in the case of a Benchmark Transition Event, the earlier of (i) the applicable Benchmark Replacement Date and (ii) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication) and (b) in the case of an Early Opt-in Election, the date specified by the Administrative Agent or the Series 2017-VFN Majority Holders, as applicable, and with consent from the Transferor (such consent not to be unreasonably withheld or delayed) by notice to the Transferor, the Administrative Agent (in the case of such notice by the Series 2017-VFN Majority Holders) and the Series 2017-VFN Noteholders.
“Benchmark Unavailability Period” shall mean, if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to USD LIBOR, and solely to the extent that USD LIBOR has not been replaced with a Benchmark Replacement, the period (x) beginning at the time that such Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder in accordance with Section 2.8 of this Agreement and (y) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder pursuant to Section 2.8 of this Agreement.
“Breakage Costs” shall mean (a) for any change in the basis for calculation of interest on any Conduit Purchaser’s Percentage Interest of the Note Principal Balance from the Commercial Paper Rate to the Liquidity Funding Rate, (b) for any payment of principal of any Series 2017-VFN Note (i) on a date other than a Payment Date or (ii) upon fewer than two (2) Business Days’ prior written notice or (c) for any failure of the Issuer to borrow any Note Principal Balance Increase on the date specified in the related Funding Notice, the loss, cost and expense attributable to such event, including, in the case of clause (a), any loss, cost or expense suffered by such Conduit Purchaser by reason of its issuance of Commercial Paper Notes or its incurrence of other obligations reasonably allocated by such Conduit Purchaser (or its related Managing Agent) to funding or maintaining its interest in the applicable Series 2017-VFN Note, and which, in the case of clauses (b) and (c), will be deemed to include an amount determined by the applicable Owner to be equal to the excess of (x) the amount of interest that such Owner would have received on the principal amount of such payment or Note Principal Balance Increase for a period of two (2) Business Days from the date of such payment or failure at the Note Rate, over (y) the amount of income such Owner estimates it will receive on the investment of an amount equal to the principal amount of such payment or Note Principal Balance Increase for such two (2) Business Day period.
“Cap Counterparty” shall mean Royal Bank of Canada, as a party to the initial Interest Rate Cap Agreement, and each other Eligible Cap Counterparty that enters into an Eligible Interest Rate Cap relating to the Series 2017-VFN Notes.
“Closing” shall have the respective meanings specified in Section 2A.1 of this Agreement.
“Collateral Agent” means, with respect to each Conduit Purchaser, the collateral agent, if any, under the program documents governing the issuance of its Commercial Paper Notes, together with its successors and assigns in such capacity.
“Commercial Paper Notes” shall mean, with respect to a Conduit Purchaser, the short term promissory notes issued by such Conduit Purchaser which are allocated in whole or in part by such Conduit Purchaser (or its related Managing Agent) to fund or maintain its interest in a Series 2017-VFN Note hereunder.
“Commercial Paper Rate” shall mean, for any Interest Period (or portion thereof): (i) with respect to the Thunder Bay Owners, clause (A) of the definition of the Thunder Bay Funding Rate; and (ii) with respect to any other Owner that becomes a party to this Agreement from time to time, the amount specified in the related joinder agreement or Transfer Supplement(s).
“Commitment” shall mean, with respect to an Ownership Group or Committed Purchaser on any date, the amount specified for such Ownership Group or Committed Purchaser on Schedule I hereto, as the same may be adjusted from time to time pursuant to Section 2.2 of this Agreement or pursuant to Transfer Supplement(s) executed by such Owner and its Assignee(s) and delivered pursuant to Section 6.1 of this Agreement.
“Committed Percentage” shall mean, for each Committed Purchaser within any Ownership Group, with respect to any date of determination, a fraction (expressed as a percentage) having as its numerator the Commitment of such Committed Purchaser as of such date and as its denominator the sum of the Commitments of all Committed Purchasers within the related Ownership Group as of such date.
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“Committed Purchaser” shall mean, with respect to each Ownership Group, each financial institution identified as a “Committed Purchaser” for such Ownership Group on Schedule I hereto or in the applicable Transfer Supplement with respect to such Ownership Group pursuant to which such financial institution becomes a “Committed Purchaser” party hereto.
“Conduit Purchaser” shall mean, with respect to each Ownership Group, each multi-seller, asset-backed commercial paper conduit, if any, identified as a “Conduit Purchaser” for such Ownership Group on Schedule I hereto or in the applicable Transfer Supplement with respect to such Ownership Group pursuant to which such multi-seller, asset-backed commercial paper conduit or RIC becomes a “Conduit Purchaser” party hereto.
“Conduit Support Document” shall mean, with respect to any Conduit Purchaser, any agreement entered into by the applicable Conduit Support Provider providing for the issuance of one or more letters of credit for the account of such Conduit Purchaser, the issuance of one or more surety bonds for which such Conduit Purchaser is obligated to reimburse the applicable Conduit Support Provider for any drawings thereunder, the sale by such Conduit Purchaser to any Conduit Support Provider of a Series 2017-VFN Note (or any portion thereof) and/or the making of loans and/or other extensions of credit to such Conduit Purchaser in connection with such Conduit Purchaser’s securitization program (whether for liquidity or credit enhancement support), together with any letter of credit, surety bond or other instrument issued thereunder, including, without limitation of the foregoing, a liquidity asset purchase agreement related to the Series 2017-VFN Note.
“Conduit Support Provider” shall mean, with respect to any Conduit Purchaser, any Person now or hereafter extending credit, or having a commitment to extend credit to or for the account of, or to make purchases from, such Conduit Purchaser or issuing a letter of credit, surety bond or other instrument to support any obligations arising under or in connection with such Conduit Purchaser’s securitization program.
“Conduit Trustee” means, with respect to each Conduit Purchaser, the trustee or security trustee, if any, appointed under the program documents of such Conduit Purchaser, for the benefit of the holders of its Commercial Paper Notes.
“Confidential Information” shall mean any and all materials and information concerning USCC, the Transferor or the Issuer and their subsidiaries and Affiliates, and their business, which information is non-public, confidential or proprietary in nature, and shall include, without limitation, (i) information transmitted in written, oral, magnetic or any other medium, (ii) all copies and reproductions, in whole or in part, of such information and (iii) all summaries, analyses, compilations, studies, notes or other records which contain, reflect, or are generated from such information; provided, that Confidential Information does not include, with respect to a Person, information that: (a) is or becomes generally available to the public other than as a result of an action by the Administrative Agent, the Managing Agents or any Owner or their representatives or (b) becomes available to the Administrative Agent, any Managing Agent or any Owner on a non-confidential basis from a person other than USCC and/or any one or more of its subsidiaries or Affiliates who is not, to the knowledge of the Administrative Agent, any Managing Agent or any Owner, otherwise bound by a confidentiality agreement with USCC and/or any one or more of its subsidiaries or Affiliates, or is not, to the knowledge of the Administrative Agent, any Managing Agent or any Owner, otherwise prohibited from transmitting the information to the Administrative Agent, any Managing Agent or any Owner.
“Day Count Fraction” shall mean, as to any Ownership Tranche for any Tranche Period, a fraction (a) the numerator of which is the number of days in that Tranche Period (or, if less, the number of days during that Tranche Period in the related Interest Period during which that Ownership Tranche was outstanding, including the first, but excluding the last, such day) and (b) the denominator of which is 360 (unless the applicable funding rate for the related Ownership Group is calculated using the Prime Rate or the Federal Funds Effective Rate, in which case the denominator is the actual number of days in the related calendar year).
“Default Rate” shall mean 2.00% per annum.
“Delayed Funding Amount” shall have the meaning specified in Section 2.1(h) of this Agreement.
“Delayed Funding Date” shall mean, with respect to a Funding Notice, the thirty-fifth (35th) day following the related Increase Date requested in such Funding Notice (or if such day is not a Business Day, then the next succeeding Business Day).
“Delayed Funding Notice” shall have the meaning specified in Section 2.1(g) of this Agreement.
“Delayed Funding Ownership Group” shall mean each Ownership Group that is identified on Schedule I hereto as a “Delayed Funding Ownership Group,” as the same may be amended from time to time with the consent of the affected Ownership Group and the Servicer.
“Early Opt-In Election” shall mean the occurrence of:
(1)(i) a determination by the Administrative Agent, in consultation with the Transferor, or (ii) a notification by the Series 2017-VFN Majority Holders to the Administrative Agent, in consultation with the Transferor, that the Series 2017-VFN Majority Holders have determined that U.S. dollar-denominated syndicated credit facilities being executed at such time, or that include language similar to that contained in Section 2.8 of this Agreement are being executed or amended, as applicable, to incorporate or adopt a new benchmark interest rate to replace USD LIBOR, and
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(2)(i) the election by the Administrative Agent, in consultation with the Transferor, or (ii) the election by the Series 2017-VFN Majority Holders, in consultation with the Transferor, to declare that an Early Opt-in Election has occurred and the provision, as applicable, by the Administrative Agent of written notice of such election to the Series 2017-VFN Noteholders or by the Series 2017-VFN Holders of written notice of such election to the Administrative Agent with a copy to the Transferor.
“Eligible Cap Counterparty” shall mean (i) a Person with commercial paper or short-term deposit ratings which are equal to “A-1” or higher by S&P and “P-1” by Moody’s on such date, (ii) if a Person does not have a commercial paper or short-term deposit rating on such date, such Person has unsecured debt obligations which are rated at least “A-” by S&P and “A3” by Moody’s, and (iii) in the case of either (i) or (ii), such Person is not on negative watch for downgrade.
“Eligible Interest Rate Cap” shall mean an interest rate cap agreement in substantively the form of Exhibit F attached hereto, entered into between the Issuer and an Eligible Cap Counterparty for the benefit of the Owners, as the same may be modified, supplemented, amended or amended and restated from time to time in accordance with the terms thereof.
“ERISA Event” shall mean any one or more of the following: (a) any reportable event, as defined in Section 4043 of ERISA, with respect to a Plan, as to which the PBGC has not waived under PBGC Regulation Section 4043 the requirement of Section 4043(a) of ERISA that it be notified of such event; (b) the filing of a notice of intent to terminate any Plan, if such termination would require material additional contributions in order to be considered a standard termination within the meaning of Section 4041(b) of ERISA, the filing under Section 4041(c) of ERISA of a notice of intent to terminate any Plan or the termination of any Plan under Section 4041(c) of ERISA; (c) the institution of proceedings, or the occurrence of an event or condition which would reasonably be expected to constitute grounds for the institution of proceedings by the PBGC under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan; (d) the failure to make a required contribution to any Plan that would result in the imposition of a lien or other encumbrance or the provision of security under Section 430 of the Code or Section 303 or 4068 of ERISA, or the arising of such a lien or encumbrance; there being or arising any “unpaid minimum required contribution” or “accumulated funding deficiency” (as defined or otherwise set forth in Section 4971 of the Code or Title I of ERISA), whether or not waived; or the filing of any request for or receipt of a minimum funding waiver under Section 412 of the Code with respect to any Plan or Multiemployer Plan, or that such filing may be made; or a determination that any Plan is, or is expected to be, considered an at-risk plan within the meaning of Section 430 of the Code or Section 303 of ERISA, or that any Multiemployer Plan is, or is expected to be, considered a plan in endangered or critical status within the meaning of Sections 431 and 432 of the Code or Sections 304 and 305 of ERISA; (e) engaging in a non-exempt prohibited transaction within the meaning of Section 4975 of the Code or Section 406 of ERISA with respect to a Plan; (f) the complete or partial withdrawal of any member of the ERISA Group from a Multiemployer Plan, the insolvency under Title IV of ERISA of any Multiemployer Plan; or the receipt by any member of the ERISA Group, of any notice, or the receipt by any Multiemployer Plan from any member of the ERISA Group of any notice, that a Multiemployer Plan is in endangered or critical status under Section 305 of ERISA; (g) any member of the ERISA Group incurring any liability under Title IV of ERISA with respect to any Plan (other than premiums due and not delinquent under Section 4007 of ERISA); (h) any member of the ERISA Group ceasing operations at a facility so as to become subject to the provisions of Section 4068(a) of ERISA, withdrawing as a substantial employer so as to become subject to the provisions of Section 4063 of ERISA or cease making contributions to any Plan subject to Section 4064(a) of ERISA to which it made contributions; or (h) any member of the ERISA Group incurring any liability under Section 4069 or 4212(c) of ERISA.
“ERISA Group” shall mean any entity, including the Issuer and the Performance Guarantor, that is a member of any group of organizations (i) described in Section 414(b) or (c) of the Code of which the Issuer or the Performance Guarantor is a member, or (ii) solely for the purposes of Section 302 of ERISA and Section 412 of the Code, described in Section 414(m) or (o) of the Code of which the Issuer or the Performance Guarantor is a member.
“Eurodollar Rate” shall mean, with respect any Interest Period or portion thereof, a rate per annum equal to the quotient (expressed as a percentage and rounded upwards, if necessary, to the nearest 1/16 of 1%) (i) with respect to the Ownership Group consisting of the TD Bank Owners, obtained by dividing (x) 3MLIBOR (or the then-current Benchmark) for such Interest Period by (y) 100% minus the LIBOR Reserve Percentage for such Interest Period, if any, or (ii) for any other Ownership Groups, obtained by dividing (x) LIBOR (or the then-current Benchmark) for such Interest Period by (y) 100% minus the LIBOR Reserve Percentage for such Interest Period, if any.
“Excluded Taxes” shall have the meaning specified in Section 2.5(a) of this Agreement.
“Existing Scheduled Commitment Termination” shall have the meaning specified in Section 2.2(c) of this Agreement.
“Facility Limit” shall mean, on any date of determination, the sum of the Commitments on such date.
“FATCA” shall mean Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code (or any amended or successor version as described above), any intergovernmental agreement entered into in connection with such sections of the Code and any legislation, law, regulation or practice enacted or promulgated pursuant to such intergovernmental agreement.
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“Federal Funds Effective Rate” shall mean, on any day with respect to any Ownership Group, the rate equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers, as published for such day (or, if such day is not a Business Day, for the preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average of the quotations for such day for such transactions received by the related Managing Agent from three federal funds brokers of recognized standing selected by such Managing Agent.
“Federal Reserve Bank of New York’s Website” shall mean the website of the Federal Reserve Bank of New York at http://www.newyorkfed.org, or any successor source.
“Fee Letters” shall mean, collectively, each agreement between the Transferor and a Managing Agent setting forth certain fees and expenses payable to such Managing Agent (for the benefit of its respective related Owners) by the Transferor in connection with the Series 2017-VFN Notes, as the same may be amended, restated, supplemented or otherwise modified from time to time.
“Funding Date” shall mean the Initial Addition Date and each Increase Date.
“Funding Notice” shall mean a notice substantially in the form of Exhibit B hereto delivered by the Issuer to the Administrative Agent and each Managing Agent pursuant to Section 2.1 of this Agreement.
“Governmental Actions” shall mean any and all consents, approvals, permits, orders, authorizations, waivers, exceptions, variances, exemptions or licenses of, or registrations, declarations or filings with, any Governmental Authority required under any Governmental Rules.
“Governmental Rules” shall mean any and all laws, statutes, codes, rules, regulations, ordinances, orders, writs, decrees and injunctions, of any Governmental Authority and any and all legally binding conditions, standards, prohibitions, requirements and judgments of any Governmental Authority.
“Hedging Requirements” shall mean the requirements contained in Exhibit G.
“ICE” shall mean the ICE Benchmark Administration.
“Increase Date” shall mean each date on which the Issuer requests that the Owners fund Note Principal Balance Increases to the Issuer pursuant to Section 2.1(e) of this Agreement.
“Indemnified Amounts” shall have the meaning specified in Section 2.6(a) of this Agreement.
“Indemnified Party” shall have the meaning specified in Section 2.6(a) of this Agreement.
“Indenture” shall mean that certain Master Indenture, dated December 20, 2017, by and among the Issuer and U.S. Bank National Association, as Indenture Trustee, as amended, supplemented or otherwise modified from time to time.
“Indenture Trustee” shall have the meaning set forth in the Indenture.
“Initial Note Principal Balance” shall mean, with respect to a Series 2017-VFN Note, the aggregate outstanding principal amount of such Series 2017-VFN Note on the Original Closing Date after giving effect to any increase on such date, if any.
“Inspection” shall have the meaning specified in Section 4.7(f) of this Agreement.
“Investing Office” shall mean initially, the office of any Owner (if any) designated as such in the Transfer Supplement by which it became a party to this Agreement, and thereafter, such other office of such Owner or such Assignee as may be designated in writing to the applicable Managing Agent, the Administrative Agent, the Issuer, the Servicer and the Indenture Trustee by such Owner or Assignee.
“Investment Letter” shall mean a letter executed by each Owner substantially in the form of Exhibit D hereto.
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“LIBOR” shall mean, with respect to any day during any Interest Period, a rate determined at approximately 11:00 a.m. (London time) two London Business Days prior to the first day of such Interest Period, equal to the interest rate per annum designated as LIBOR for the related Managing Agent (or its Affiliate) appearing on Reuters Screen LIBOR01 page on the Reuters Service (or such other page as may replace the LIBOR01 page on that service or such other service as may be nominated by ICE, in each case, for the purpose of displaying London interbank offered rates of major banks) as the rate for U.S. dollar deposits for a period comparable to such Interest Period and in an amount comparable to the applicable portion of the Note Principal Balance to accrue interest by reference to such interest rate.  In the event no rate is so posted, “LIBOR” shall mean the arithmetic average (rounded up to only four decimal places) of the rates per annum offered to the principal London office of the related Managing Agent (or if any Managing Agent does not maintain a London office, the principal London office of an Affiliate of such Managing Agent) by three (3) London banks, selected by the Managing Agent in good faith, for U.S. dollar deposits for a period comparable to such Interest Period and in an amount comparable to the applicable portion of the Note Principal Balance to accrue interest by reference to such interest rate.  If fewer than three (3) quotations are provided as requested, the rate for that Interest Period will be the arithmetic mean of the three (3) rates quoted by major banks selected by the related Managing Agent in good faith in New York City for loans in U.S. dollars to leading European banks for a period comparable to such Interest Period, such mean to be calculated by the Indenture Trustee at approximately 11:00 a.m., New York City time, on that day.  For the avoidance of doubt, the Indenture Trustee shall have no obligation to determine any alternative index if LIBOR is not available at the time any such calculation is to be made.  Notwithstanding anything to the contrary in this definition, if a Benchmark Unavailability Period commences and “LIBOR” cannot be determined in accordance with at least one of the procedures described above on any day during such Benchmark Unavailability Period, then “LIBOR” on each such day shall be the arithmetic average (rounded up to only four decimal places) of LIBOR for each of the three most recent dates of determination.
“LIBOR Reserve Percentage” shall mean, for any portion of the Note Principal Balance to accrue interest by reference to the Eurodollar Rate (or the correlative rate based on the then-current Benchmark) and any Interest Period therefor, the maximum reserve percentage, if any, applicable to the related Owner under Regulation D during such Interest Period (or if more than one percentage shall be applicable, the daily average of such percentages for those days in such Interest Period during which any such percentage shall be applicable) for determining such Owner’s reserve requirement (including any marginal, supplemental or emergency reserves) with respect to liabilities or assets having a term comparable to such interest period consisting or included in the computation of Eurocurrency Liabilities (as defined in Regulation D).  Without limiting the effect of the foregoing, but without duplicating the provisions of Section 2.4, the LIBOR Reserve Percentage shall reflect any other reserves required to be maintained by an Owner by reason of any Regulatory Change, in which such relevant rule, guideline or directive was adopted, changed or reinterpreted after the Original Closing Date, against (a) any category of liabilities which includes deposits by reference to which LIBOR, 3MLIBOR or the then-current Benchmark, as applicable, is to be determined or (b) any category of extensions of credit or other assets which include credits or assets based on LIBOR, 3MLIBOR or the then-current Benchmark, as applicable.
“Liquidity Funding Rate” shall mean for any applicable portion of the Note Principal Balance and Interest Period and the applicable Managing Agent and its related Ownership Group, an interest rate per annum equal to the greater of (I) the sum of (A) the Federal Funds Effective Rate for each day in such Interest Period plus (B) 0.50% plus (C) the Program Fee Rate, and (II) the applicable Prime Rate plus the Program Fee Rate for each day in such Interest Period.
“London Business Day” shall mean any business day on which dealings in deposits in U.S. dollars are transacted in the London interbank market.
“Managing Agent” shall mean, with respect to any Ownership Group, the Person so designated on Schedule I hereto or in the applicable Transfer Supplement with respect to such Ownership Group.
“Material Adverse Effect” shall mean a material adverse effect on (i) the financial condition or operations of USCC, the Transferor, the Issuer, or the Performance Guarantor, as applicable, together with its respective subsidiaries (in each case taken as a whole), (ii) the ability of any of USCC, the Transferor, the Issuer or the Performance Guarantor to perform its respective obligations under any Transaction Document, (iii) the legality, validity or enforceability of any Transaction Document, (iv) the rights or interests of the Indenture Trustee or the Noteholders hereunder or with respect to the Collateral or (v) the collectability of the Receivables generally or any material portion thereof.
“Monthly Additional Interest” shall have the meaning specified in Section 2.3(a).
“Monthly Interest” shall have the meaning specified in Section 2.3(a).
“Monthly Interest Shortfall” shall have the meaning specified in Section 2.3(a).
“Multiemployer Plan” shall mean a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA which is or was at any time during the current year or the immediately preceding five years contributed to by any member of the ERISA Group on behalf of its employees and which is covered by Title IV of ERISA.
“Non-Delaying Ownership Group” shall have the meaning specified in Section 2.1(h) of this Agreement.
“Non-Renewing Ownership Group” shall have the meaning specified in Section 2.2(d) of this Agreement.
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“Note Principal Balance” shall have the meaning specified in the Series 2017-VFN Supplement.
“Note Principal Balance Increase” shall mean any increase in the Note Principal Balance of any Series 2017-VFN Note pursuant to Section 2.1 of this Agreement.
“Note Principal Balance Reduction” shall mean any reduction of the Note Principal Balance of any Series 2017-VFN Note pursuant to Section 2.1(i) of this Agreement.
“Note Rate” shall mean, with respect to each Owner, any Series 2017-VFN Note and any Interest Period or portion thereof, a rate of interest equal to the Thunder Bay Funding Rate (with respect to Thunder Bay) or the TD Bank Funding Rate (with respect to TD Bank, as applicable, or the applicable rate of interest specified in the related joinder agreement or Transfer Supplement(s) to which any other Owner becomes a party to this Agreement.
“OFAC” shall mean the Office of Foreign Assets Control of the U.S. Department of the Treasury.
“Original Closing Date” shall mean December 20, 2017.
“Owner Trustee” shall mean Wilmington Trust, National Association, a national banking association, not in its individual capacity, but solely as owner trustee of the Issuer.
“Owner’s Percentage” shall mean, at any time with respect to any Owner in an Ownership Group, the percentage equivalent of a fraction, the numerator of which is the principal amount of a Series 2017-VFN Note that such Owner is committed to fund at such time and the denominator of which is the Commitment of such Ownership Group at such time.
“Owners” shall mean the Managing Agents, the Conduit Purchasers, the Committed Purchasers, the Conduit Support Providers and all other owners by assignment or otherwise of all or any portion of a Series 2017-VFN Note (or any interest therein).
“Ownership Group” shall mean each separate group identified from time to time on Schedule I hereto consisting of a Managing Agent, one or more Conduit Purchasers administered by such Managing Agent (if applicable), one or more related Committed Purchasers and each other related Owner.  The Managing Agent, Conduit Purchasers, Committed Purchasers and the other Owners identified on Schedule I as belonging to the same Ownership Group, together with all other owners by assignment or otherwise of all or any portion of a Series 2017-VFN Note (or any interest therein), shall be deemed to be “related” hereunder.
“Ownership Group Share” shall mean, for an Ownership Group at any time of determination, a fraction (expressed as a percentage) having the Commitment for such Ownership Group as its numerator and the VFN Maximum Principal Amount as its denominator; provided, however, that if any Owner fails to fund any amount as required hereunder, “Ownership Group Share” shall mean, for an Ownership Group, for purposes of making all distributions hereunder, a fraction (expressed as a percentage) having the portion of the Note Principal Balance of the Series 2017-VFN Note funded by the Owners of such Ownership Group as its numerator and the Note Principal Balance as its denominator.
“Ownership Tranche” shall mean each of the ownership tranches into which the Series 2017-VFN Notes may be divided from time to time, which shall be identical in all respects, except for their respective Commitments and principal amounts funded in respect of such tranches, and certain matters relating to the rate and payment of interest applicable to each Ownership Tranche.  The initial allocation of Series 2017-VFN Notes among Ownership Tranches and any modifications thereto shall be made as provided in Sections 2.1(a) and 2.2, as applicable, of this Agreement.
“Participant” shall have the meaning specified in Section 6.1(d) of this Agreement.
“Participation” shall have the meaning specified in Section 6.1(d) of the Agreement.
“Percentage Interest” shall mean, for an Owner with respect to any date of determination, the percentage equivalent of (a) the sum of (i) the portion of the Initial Note Principal Balance (if any) funded by such Owner, plus (ii) the aggregate amount of Note Principal Balance Increases (if any) funded by such Owner after the Original Closing Date but prior to such day pursuant to Section 2.1 of this Agreement, plus (iii) any portion of the Note Principal Balance acquired by such Owner as an Assignee from another Owner pursuant to a Transfer Supplement executed and delivered pursuant to Section 6.1 of this Agreement, minus (iv) the aggregate amount of principal payments received by such Owner in respect of its interest in a Series 2017-VFN Note prior to such day, minus (v) any portion of the Note Principal Balance assigned by such Owner to an Assignee pursuant to a Transfer Supplement executed and delivered pursuant to Section 6.1 of this Agreement, divided by (b) the Note Principal Balance on such day.
“Performance Guarantor” shall have the meaning specified in the preamble to this Agreement.
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“Permitted Transferee” shall mean each initial Owner, each Managing Agent (in its individual capacity), the Administrative Agent (in its individual capacity), any asset backed commercial paper conduit whose Commercial Paper Notes are rated in the highest available short-term rating from at least two (2) Rating Agencies, that is administered by the Administrative Agent, a Managing Agent or any Affiliate thereof, any Support Party, any Collateral Agent or Conduit Trustee for any Conduit Purchaser’s commercial paper program to secure obligations of such Conduit Purchaser, and any other Person who has been consented to as a potential Transferee by the Issuer (which consent shall not be unreasonably withheld, delayed or conditioned); provided, that after an Amortization Event or an Event of Default occurs and is continuing, a “Permitted Transferee” shall mean any Person, and the consent of the Issuer shall not be required for any transferee.
“Plan” means at any time an employee pension benefit plan (other than a Multiemployer Plan) which is covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Code and is either (a) maintained or contributed to by any member of the ERISA Group for any of its employees or (b) maintained pursuant to a collective bargaining agreement or any other arrangement under which more than one employer makes contributions and to which any member of the ERISA Group is then making or accruing an obligation to make contributions or has within the preceding five plan years made contributions.
“Prime Rate” shall mean, for any day, the rate of interest publicly announced from time to time by the Administrative Agent as its prime rate in effect at its principal office in New York City.
“Program Fee Rate” shall mean, with respect to any Ownership Group, any Series 2017-VFN Note and any Interest Period, the rate specified as the Program Fee Rate in the applicable Fee Letter for such Ownership Group.
“Purchased Assets” shall have the meaning specified in the Receivables Purchase Agreement.
“RBC” shall have the meaning specified in the preamble to this Agreement.
“RBC Roles” shall have the meaning specified in Section 7.17 of this Agreement.
“Regulation D” shall mean Regulation D of the Board of Governors of the Federal Reserve System.
“Regulatory Change” shall mean (i) the adoption after the date hereof of any applicable law, rule or regulation (including any applicable law, rule or regulation regarding capital adequacy or liquidity coverage), or any change therein, by any governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, after the date hereof, (ii) any change after the date hereof in the interpretation or administration thereof by any governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance with any request or directive (whether or not having the force of law) issued after the date hereof by any such authority, central bank or comparable agency, or (iii) the compliance, whether commenced prior to or after the date hereof, by any Owner, Participant or Support Party with the requirements of (a) the final rule titled Risk-Based Capital Guidelines; Capital Adequacy Guidelines; Capital Maintenance: Regulatory Capital; Impact of Modifications to Generally Accepted Accounting Principles; Consolidation of Asset-Backed Commercial Paper Programs; and Other Related Issues, adopted by the United States bank regulatory agencies on December 15, 2009 (the “FAS 166/167 Capital Guidelines”), or (b) the Dodd-Frank Wall Street Reform and Consumer Protection Act, or (c) any existing or future rules, regulations, guidance, interpretations or directives from the U.S. bank regulatory agencies relating to the FAS 166/167 Capital Guidelines or the Dodd-Frank Wall Street Reform and Consumer Protection Act (whether or not having the force of law), or (d) the rules, guidelines and directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case relating to the international regulatory framework for banking capital and liquidity measurements, standards and monitoring known collectively as “Basel III”, regardless of the date when enacted, adopted, issued or implemented.
“Relevant Governmental Body” shall mean the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto.
“Restricted Person” shall have the meaning specified in Section 7.14(c) of this Agreement.
“RIC” shall mean a receivables investment company or asset-backed commercial paper conduit administered by a Managing Agent or an Affiliate thereof which obtains funding from the issuance of Commercial Paper Notes or other notes.
“Sanctioned Country” shall mean, at any time, a country or territory which is the subject or target of any Sanctions, including, without limitation, as of the date hereof, Cuba, Crimea (Ukraine), Iran, Sudan, Syria and North Korea.
“Sanctioned Person” shall mean, at any time, (a) any Person currently the subject or the target of any Sanctions, including any Person listed in any Sanctions-related list of designated Persons maintained by OFAC or the U.S. Department of State, available at: http://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspx, or as otherwise published from time to time, (b)(i) an agency of the government of a Sanctioned Country, (ii) an organization controlled by a Sanctioned Country, or (iii) any Person operating, organized or resident in a Sanctioned Country, to the extent subject to a sanctions program administered by OFAC, or (c) any Person controlled by any such Person.
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“Sanctions” shall mean economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time (a) by the U.S. government, including those administered by OFAC, the U.S. State Department, the U.S. Department of Commerce or the U.S. Department of the Treasury, (b) by the United Nations Security Council, the European Union or Her Majesty’s Treasury of the United Kingdom or (c) by other relevant sanctions authorities to the extent compliance with the sanctions imposed by such other authorities would not entail a violation of applicable law.
“Scheduled Commitment Termination Date” shall mean December 15, 2022, as such date may be extended from time to time pursuant to Section 2.2(c).
“Seller’s Interest Retention Requirements” shall mean the Transferor’s obligations pursuant to Section 4.04 of the Transfer and Servicing Agreement and the Performance Guarantor’s representations and warranties under Section 4(k) of the Performance Guaranty.
“Series 2017-VFN Controlling Holders” shall mean with respect to the Series 2017-VFN Notes and at any time of determination, the Holders of 100% of the Outstanding Amount of Series 2017-VFN Notes.
“Series 2017-VFN Majority Holders” shall mean with respect to the Series 2017-VFN Notes and at any time of determination, the Holders in the aggregate of at least 50% of the Outstanding Amount of Series 2017-VFN Notes.
“Series 2017-VFN Supplement” shall mean that certain Amended and Restated Series 2017-VFN Indenture Supplement, dated as of October 23, 2020, by and among the Issuer, the Servicer and the Indenture Trustee, as amended, restated, supplemented or otherwise modified from time to time.
“Servicer” shall have the meaning specified in the preamble to this Agreement.
“Specified Tax Changes” shall have the meaning specified in Section 2.5(a) of this Agreement.
“Supplemental Advance Notice” shall have the meaning specified in Section 2.1(h) of this Agreement.
“Support Advances” shall mean any loans or advances, or any participation or other interest, funded or held by a Support Party pursuant to a Support Facility (but excluding any such loans or advances made to fund the applicable Conduit Purchaser’s obligations to pay interest, fees or other similar amounts relating to the funding of its making or maintaining its interest in a Series 2017-VFN Note).
“Support Facility” shall mean any liquidity or credit support agreement in favor a Conduit Purchaser which relates to this Agreement, the Series 2017-VFN Note held by the Ownership Group of which such Conduit Purchaser is a member and the other Transaction Documents (including any agreement to purchase an assignment of or participation in, or to extend a liquidity loan with respect to, such Conduit Purchaser’s interest in such Series 2017-VFN Note).
“Support Party” shall mean any bank, insurance company or other financial institution extending or having a commitment or option to extend funds to or for the account of a Conduit Purchaser (including by agreement to purchase an assignment of, or participation in, the Series 2017-VFN Note held by the Ownership Group of which such Conduit Purchaser is a member) under a Support Facility.  Each Committed Purchaser shall be deemed to be a Support Party for the Conduit Purchaser(s) in the related Ownership Group.
“Taxes” shall have the meaning specified in Section 2.5(a) of this Agreement.
“TD Bank” shall mean The Toronto-Dominion Bank, a Schedule I bank organized under the federal laws of Canada.
“TD Bank Funding Rate” shall mean with respect to any Interest Period the sum of (i) the weighted average daily Eurodollar Rate (or the correlative rate based on the then-current Benchmark) for deposits in U.S. dollars as reported on the related Reuters Screen or on any successor or substitute page of such service, or any successor or substitute for such service, for the purpose of displaying offered rates of leading banks for London interbank deposits in U.S. dollars on each day during the Interest Period, or if such day is not a Business Day, then the immediately preceding Business Day in each case, changing when and as such rate changes; and (ii) the Program Fee Rate; provided, however, that during the Amortization Period, the TD Bank Funding Rate shall be the rate determined pursuant to the paragraph above plus the Amortization Rate; provided further, that if an Event of Default has occurred and is continuing, then the TD Bank Funding Rate shall be the rate determined pursuant to the first sentence of this definition above plus the sum of (1) the Amortization Rate and (2) the Default Rate.  Notwithstanding anything in this definition to the contrary, in no event shall the Eurodollar Rate (or the correlative rate based on the then-current Benchmark) be less than zero for purposes of this Agreement or any other Transaction Document.
“TD Bank Managing Agent” shall mean the Managing Agent for the TD Bank Owners identified on the signature pages hereto, together with its successors and assigns.
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“TD Bank Note” shall mean the Series 2017-VFN Note representing the Ownership Tranche of the Series 2017-VFN Notes funded from time to time by the TD Bank Managing Agent for the benefit of the applicable TD Bank Owners pursuant to this Agreement.
“TD Bank Owners” shall mean the TD Bank Managing Agent, TD Bank, each assignee of TD Bank which is a RIC and any assignee thereof chosen by the TD Bank Managing Agent with the consent of the Transferor, which consent shall not be unreasonably withheld.
“Termination Date” shall mean the earliest to occur of (i) the Scheduled Commitment Termination Date, (ii) the date on which an Amortization Event occurs with respect to Series 2017-VFN and (iii) the date on which an Event of Default occurs (or, to the extent required, is declared).
“Thunder Bay” shall mean Thunder Bay Funding, LLC, a Delaware limited liability company, together with its successors and assigns.
“Thunder Bay Funding Rate” shall mean:
(A) with respect to any Interest Period, to the extent any Thunder Bay Purchaser (or a RIC which is an assignee of Thunder Bay) is funding the Thunder Bay Tranche during such Interest Period through the issuance of commercial paper, the sum of (i)(x) unless the Thunder Bay Managing Agent has determined that the Thunder Bay Pooled CP Rate shall be applicable, a rate per annum equal to the rate per annum calculated by the Thunder Bay Managing Agent to reflect Thunder Bay’s (or such RIC’s) cost of funding such Ownership Tranche, taking into account the weighted daily average interest rate payable in respect of such commercial paper notes during such period (determined in the case of discount commercial paper notes by converting the discount to an interest bearing equivalent rate per annum), applicable placement fees and commissions, and such other costs and expenses as the Thunder Bay Managing Agent in good faith deems appropriate, or (y) to the extent the Thunder Bay Managing Agent has determined that the Thunder Bay Pooled CP Rate shall be applicable, the Thunder Bay Pooled CP Rate and (ii) the Program Fee Rate; provided, however, that if any component of the rate determined pursuant to this clause (A) is a discount rate, in calculating the “Thunder Bay Funding Rate” for such Interest Period the Thunder Bay Managing Agent shall for such component use the rate resulting from converting such discount rate to an interest bearing equivalent rate per annum; or
(B) to the extent that Thunder Bay or any other Owner that is a member of its related Ownership Group is funding or maintaining any Series 2017-VFN Notes (or portion thereof) other than through the issuance of Commercial Paper Notes, a rate equal to the Liquidity Funding Rate for such Interest Period or portion thereof;
provided, however, that during the Amortization Period, the Thunder Bay Funding Rate shall be the rate determined pursuant to clause (A) or clause (B) above, as applicable, plus the Amortization Rate; provided further, that if an Event of Default has occurred and is continuing, then the Thunder Bay Funding Rate shall be the rate determined pursuant to clause (A) or clause (B) above, as applicable, plus the sum of (1) the Amortization Rate and (2) the Default Rate.
“Thunder Bay Liquidity Asset Purchase Agreement” shall mean the liquidity asset purchase agreement dated as of the date hereof among Thunder Bay, the Thunder Bay Managing Agent and each of the Thunder Bay Purchasers signatory thereto, as the same may from time to time be amended, restated, supplemented or otherwise modified.
“Thunder Bay Managing Agent” shall mean the Managing Agent for the Thunder Bay Owners identified on the signature pages hereto, together with its successors and assigns.
“Thunder Bay Note” shall mean the Series 2017-VFN Note representing the Ownership Tranche of the Series 2017-VFN Notes funded from time to time by the Thunder Bay Managing Agent for the benefit of the applicable Thunder Bay Owners pursuant to this Agreement.
“Thunder Bay Owners” shall mean the Thunder Bay Managing Agent, Thunder Bay, each assignee of Thunder Bay which is a RIC and the Thunder Bay Purchasers and any assignee thereof chosen by the Thunder Bay Managing Agent with the consent of the Transferor, which consent shall not be unreasonably withheld.
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“Thunder Bay Pooled CP Rate” shall mean, for any day during any Interest Period, the per annum rate equivalent to the weighted average of the per annum rates paid or payable by Thunder Bay from time to time as interest on or otherwise (by means of interest rate hedges or otherwise taking into consideration any incremental carrying costs associated with short-term promissory notes issued by Thunder Bay maturing on dates other than those certain dates on which Thunder Bay is to receive funds) in respect of the promissory notes issued by Thunder Bay that are allocated, in whole or in part, by the Managing Agent (on behalf of Thunder Bay) to fund or maintain any Series 2017-VFN Notes during such period, as determined by the Managing Agent (on behalf of Thunder Bay) and reported to the Transferor, which rates shall reflect and give effect to (1) the commissions of placement agents and dealers in respect of such promissory notes, to the extent such commissions are allocated, in whole or in part, to such promissory notes by the Managing Agent (on behalf of Thunder Bay) and (2) other borrowings by Thunder Bay, including, without limitation, borrowings to fund small or odd dollar amounts that are not easily accommodated in the commercial paper market; provided, however, that if any component of such rate is a discount rate, in calculating the Thunder Bay Pooled CP Rate, the Managing Agent shall for such component use the rate resulting from converting such discount rate to an interest bearing equivalent rate per annum.
“Thunder Bay Purchasers” shall mean each of the purchasers party to the Thunder Bay Liquidity Asset Purchase Agreement and any other Conduit Support Provider related to Thunder Bay.
“Thunder Bay Tranche” shall mean the Ownership Tranche funded from time to time by the Thunder Bay Managing Agent for the benefit of the applicable Thunder Bay Owners pursuant to this Agreement.
“Tranche Invested Amount” shall mean, at any time as to any Series 2017-VFN Note and any Ownership Tranche, that portion of the Note Principal Balance allocated to the Series 2017-VFN Note representing that Ownership Tranche.
“Tranche Period” shall mean a specified period during which an Ownership Tranche will accrue interest by reference to a component of a Note Rate, including the Eurodollar Rate (or the correlative rate based on the then-current Benchmark), the Prime Rate or a Federal Funds Effective Rate.
“Transaction” shall have the meaning specified in Section 7.3(b) of this Agreement.
“Transfer” shall have the meaning specified in Section 6.1(c) of this Agreement.
“Transfer Supplement” shall have the meaning specified in Section 6.1(e) of this Agreement.
“Transferee” shall have the meaning specified in Section 6.1(c) of this Agreement.
“Unadjusted Benchmark Replacement” shall mean the Benchmark Replacement excluding the Benchmark Replacement Adjustment.
“Upfront Fee” with respect to any Ownership Group, shall have the meaning specified in the applicable Fee Letter.
“USD LIBOR” shall mean the London interbank offered rate for U.S. dollars. 
“USCC” shall have the meaning specified in the preamble to this Agreement.
“USCC Services” shall have the meaning specified in the preamble to this Agreement.
“VFN Maximum Principal Amount” shall mean, with respect to any date of determination, the Facility Limit on such date.
“VFN Maximum Principal Amount Increase Notice” shall have the meaning specified in Section 2.2(b).
“VFN Non-Use Fee” shall have the meaning specified in Section 2.3(c).
“VFN Non-Use Fee Rate” shall mean, with respect to any Ownership Group, any Series 2017-VFN Note and any Interest Period, the per annum rate specified as such in the applicable Fee Letter for such Ownership Group.
“Volcker Rule” shall have the meaning specified in Section 4.1(i) of this Agreement.
“written” or “in writing” (and other variations thereof) shall mean any form of written communication or a communication by means of facsimile or electronic mail.
SECTION 1.2Other Definitional Provisions.
(a)Unless otherwise specified therein, all terms defined in this Agreement shall have the defined meanings as set forth herein when used in any certificate or other document made or delivered pursuant hereto.
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(b)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; and Section, subsection and Exhibit references are to this Agreement, unless otherwise specified.  The words “including” and “include” shall be deemed to be followed by the words “without limitation.”
ARTICLE II
TERMS OF THE SERIES 2017-VFN NOTES

SECTION 2.1Issuance of Series 2017-VFN Notes; Note Principal Balance Increases; Note Principal Balance Reductions.
(a)On the terms and subject to the conditions set forth in the 2017 Agreement, the Series 2017-VFN Supplement and the other Transaction Documents, and in reliance on the covenants, representations, warranties and agreements set forth herein and therein, as applicable, the Issuer has offered to each Managing Agent, on behalf of its respective Ownership Group, and each Managing Agent, on behalf of its respective Ownership Group, has funded a variable funding loan evidenced by the Series 2017-VFN Notes.
(b)[Reserved].
(c)[Reserved].  
(d)[Reserved].
(e)Subject to the terms and conditions set forth in this Agreement and the Transaction Documents, on any Business Day during the Revolving Period, the Issuer may in its discretion request a Note Principal Balance Increase from the Owners by delivering to each Managing Agent and the Administrative Agent, a Funding Notice by 12:00 p.m. New York City time at least three (3) Business Days prior to the applicable requested Increase Date, provided, that as of the applicable Funding Date, each of the following conditions is satisfied:
(i)after giving effect to such Note Principal Balance Increase, (A) the Note Principal Balance shall not exceed the VFN Maximum Principal Amount at such time; (B) the Ownership Group Share of the Note Principal Balance funded by each Ownership Group shall not exceed its respective Commitment; and (C) the portion of the Note Principal Balance funded by any Committed Purchaser shall not exceed its Adjusted Commitment;
(ii)the Funding Notice shall (x) specify: (A) the proposed date of such Note Principal Balance Increase, which date shall be a Business Day occurring no earlier than the third (3rd) Business Day after the date of such Funding Notice, (B) the amount of such Note Principal Balance Increase (which shall be in a minimum aggregate amount of $1,000,000 or an integral multiple of $100,000 in excess thereof, and (C) the bank account to which the funds from such Note Principal Balance Increase should be sent and (y) have been received by the Managing Agents and the Administrative Agent not later than 12:00 p.m. on the third (3rd) Business Day prior to the proposed date of the requested Note Principal Balance Increases;
(iii)there shall be no more than two (2) requests for Note Principal Balance Increases by the Issuer during any calendar week; and
(iv)each funding of a Note Principal Balance Increase hereunder shall be funded by the Ownership Groups ratably in accordance with the Ownership Group Shares of the amount of the requested Note Principal Balance Increase.
(f)Subject to the terms and conditions set forth in this Agreement (including Section 3.2 hereof) and the other Transaction Documents, on each Funding Date, the Conduit Purchasers in each Ownership Group, acting through the related Managing Agent, may (but are not committed to) at the request of the Issuer pursuant to a Funding Notice, fund such Ownership Group’s Ownership Group Share of any requested Note Principal Balance Increase in amounts to be allocated among such Conduit Purchasers by the related Managing Agent.  If any Conduit Purchaser chooses at any time not to fund its portion of such Ownership Group’s Ownership Group Share of any Note Principal Balance Increase when requested by the Issuer, on the applicable Funding Date, the related Committed Purchasers, acting through the related Managing Agent, shall, subject to the conditions set forth in Section 3.2 hereof, fund their respective Committed Percentages of such Note Principal Balance Increase.  Each funding of an Ownership Group’s Ownership Group Share of Note Principal Balance Increase shall be paid by the related Owners to an account designated by the related Managing Agent.  Each funding of a Note Principal Balance Increase by the Owners hereunder shall represent an increase in the Note Principal Balance by an equal amount.  Each Managing Agent shall provide prompt notice to the Issuer and each other Managing Agent if any Conduit Purchaser in its Ownership Group elects not to fund its Ownership Group’s Ownership Group Share of any requested Note Principal Balance Increase.
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(g)Amounts due in respect of each Note Principal Balance Increase shall be transmitted by the respective Managing Agents for payment not later than 1:00 p.m. New York City time on the applicable Increase Date by wire transfer of immediately available funds to the Transferor’s account maintained at Wells Fargo Bank, N.A. (ABA #121000248) (or such other account as may from time to time be specified by the Issuer in a notice to the applicable Managing Agent); provided, however, that notwithstanding anything to the contrary herein, at any time after the Issuer delivers a Funding Notice pursuant to this Section 2.1, a Managing Agent that is part of a Delayed Funding Ownership Group may notify the Issuer in writing, not later than 10:00 a.m. New York City time on the Business Day immediately preceding the proposed Increase Date (a “Delayed Funding Notice”), of its intention to fund all or any portion of the amount of the related Note Principal Balance Increase on a date that is on or before the Delayed Funding Date with respect to such Funding Notice rather than on the requested Increase Date.  In the event a Managing Agent delivers the notice described in the preceding sentence, the Issuer may at any time without penalty revoke, in whole or in part, the Note Principal Balance Increase set forth in the related Funding Notice.
(h)In the event that one or more Delayed Funding Ownership Groups timely delivers a Delayed Funding Notice with respect to any portion of the amount of the Note Principal Balance Increase requested on the proposed Increase Date (a “Delayed Funding Amount”), the Issuer shall promptly notify the Managing Agents of each other Ownership Group that has not given timely notice of a Delayed Funding Amount (each, a “Non-Delaying Ownership Group”) that the amount of its Note Principal Balance Increase on the related Increase Date is being increased to accommodate a Delayed Funding Amount, which notice shall specify the amount of such increase (such notice, a “Supplemental Advance Notice”).  Each such Non-Delaying Ownership Group shall increase the amount of its respective Note Principal Balance Increase to be made by it on the related Increase Date by the amount specified in the Supplemental Advance Notice, which amounts shall be allocated among each Non-Delaying Ownership Group pro rata based on its respective unused Commitment, up to the Delayed Funding Amount, but not in excess of the unused portion of its respective Commitment.  Notwithstanding any other provision to the contrary in any Transaction Documents (including, without limitation, Section 2.1(i) of this Agreement), in the event there is any Note Principal Balance Reduction or other repayment of principal prior to the funding of a Delayed Funding Amount by a Delayed Funding Ownership Group, the amount of such repayment shall be allocated first to the Non-Delaying Ownership Groups that increased the amount funded by them pro rata on the basis of the amount funded by such Non-Delaying Ownership Groups until such amount is repaid in full, and then pro rata among all Ownership Groups to reduce the Note Principal Balance of the Series 2017-VFN Note held by each Ownership Group, and the amount requested under the applicable Funding Notice and the Delayed Funding Amount for each Delayed Funding Ownership Group shall be deemed to be reduced by the amount of such payment, pro rata on the basis of their respective Delayed Funding Amounts.  Upon the funding of any Delayed Funding Amount by a Delayed Funding Ownership Group, such amount shall be allocated and paid by the Issuer to the applicable Non-Delaying Ownership Groups on the Delayed Funding Date on the basis of the amount of the Delayed Funding Amount funded by such Non-Delaying Ownership Groups that remains unpaid (after giving effect to any Note Principal Balance Reductions or other payments of principal during such delayed funding period), until such amount is repaid in full.
(i)Subject to the terms and conditions set forth herein and in the other Transaction Documents, on any Business Day during the Revolving Period, the Issuer shall have the right to reduce the Note Principal Balance (each such reduction, a “Note Principal Balance Reduction”) by at least $250,000 or an integral multiple of $50,000 in excess thereof; provided, that (i) on such Business Day and immediately after giving effect thereto, no Default, Event of Default, Amortization Event, Potential Amortization Event, Servicer Default or Potential Servicer Default shall exist; (ii) the Issuer shall give prior written notice to the Managing Agents, the Administrative Agent and the Indenture Trustee in respect of such Note Principal Balance Reduction at least three (3) Business Days prior to the date of such proposed Note Principal Balance Reduction; (iii) such Note Principal Balance Reduction shall be applied to reduce the Note Principal Balance of the Series 2017-VFN Note held by each Ownership Group ratably in accordance with its Ownership Group Share and (iv) the Issuer shall pay to the Managing Agents (for the account of the Owners in the related Ownership Group), the amount of any Breakage Costs incurred by the Owners in connection with such Note Principal Balance Reduction in accordance with Section 2.6(e) of this Agreement.
(j)On the Termination Date, the Commitments of all Owners shall automatically, without further action on the part of any Person, terminate.
SECTION 2.2Reduction, Increase and Extension of Commitments.
(a)The Issuer may at any time, upon at least thirty (30) days’ prior written notice to each Managing Agent and the Administrative Agent, with a copy to the Indenture Trustee, reduce in part the VFN Maximum Principal Amount or the unused Commitment (but not below the related outstanding Note Principal Balance of the Series 2017-VFN Note for any Ownership Group at such time); provided, however, that each partial reduction shall (i) be in an amount equal to $10,000,000 or any integral multiples of $1,000,000 in excess thereof and (ii) reduce each Commitment hereunder ratably in accordance with the respective Ownership Group’s Ownership Group Share of such reduction to the VFN Maximum Principal Amount.  Notwithstanding the preceding sentence, the Issuer may at any time terminate in whole the VFN Maximum Principal Amount and the Facility Limit, upon (1) at least ten (10) Business Days’ prior written notice to each Managing Agent and the Administrative Agent, with a copy to the Indenture Trustee, which notice shall specify the proposed payment date of such termination; and (2) payment in full of (A) the Note Principal Balance of the Series 2017-VFN Notes, (B) any accrued and unpaid Monthly Interest, Breakage Costs, Additional Amounts and VFN Non-Use Fees due to the Series 2017-VFN Noteholders through the date of termination, and (C) payment in full of any other amounts payable to the Series 2017-VFN Noteholders pursuant to this Agreement or the other Transaction Documents.
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(b)The Issuer may, from time to time upon at least thirty (30) days’ prior written notice to each Managing Agent and the Administrative Agent (or such shorter period as shall be approved by the Administrative Agent and the Managing Agents of the Ownership Groups increasing their commitments), request an increase to the VFN Maximum Principal Amount.  Each such notice shall be in a form reasonably acceptable to the Administrative Agent (each a “VFN Maximum Principal Amount Increase Notice”) and shall specify (i) the proposed date such increase shall become effective, (ii) the proposed amount of such increase, which amount shall be at least $25,000,000 or an integral multiple of $5,000,000 in excess thereof; (iii) the identity of the Ownership Group(s) (and members thereof) whose Commitment(s) will be increased in connection therewith; (iv) the identity of all Owners in such Ownership Group and the amount of their respective Commitments after giving effect to such increase in the VFN Maximum Principal Amount; and (v) a recalculation of the Ownership Group Shares which will become effective upon such increase in the VFN Maximum Principal Amount.  No such increase shall become effective unless and until (A) the Commitments of the Owners in one or more existing Ownership Groups have been increased by the amount of such increase in the VFN Maximum Principal Amount (or a portion thereof, if such increase is accomplished by a combination of means pursuant to clause (D) below), as evidenced by an agreement in writing executed by the Issuer, the Servicer, the Committed Purchasers and the Managing Agents for such increasing Ownership Groups, (B) one or more additional Ownership Groups have become parties to this Agreement by executing a joinder agreement in form and substance reasonably acceptable to the Series 2017-VFN Controlling Holders and the Issuer, which new Ownership Groups have Commitments equal to the amount of such increase in the VFN Maximum Principal Amount (or a portion thereof, if such increase is accomplished by a combination of means pursuant to clause (D) below), (C) the available commitments of the Conduit Support Providers hereunder or under the applicable Conduit Support Documents of the applicable Conduit Purchasers are increased as necessary to maintain the then-current ratings of such Conduit Purchaser’s Commercial Paper Notes, or (D) a combination of the foregoing.  Notwithstanding anything to the contrary set forth herein, nothing contained in this Agreement shall constitute a commitment or obligation on the part of any Owner to increase its Commitment hereunder.
(c)The Issuer may, at any time during the period which is no more than sixty (60) days or less than forty-five (45) days immediately preceding the Scheduled Commitment Termination Date (as such Scheduled Commitment Termination Date may have previously been extended pursuant to this Section 2.2), request that the then-applicable Scheduled Commitment Termination Date (the “Existing Scheduled Commitment Termination Date”) be extended for an additional period of up to 364 days.  Any such request shall be in writing and delivered to each Managing Agent, and shall be subject to the following conditions:  (a) none of the Owners shall have any obligation to extend the Existing Scheduled Commitment Termination Date at any time, and (b) any such extension shall be effective with respect to any Ownership Group only upon the written agreement of the Managing Agent, each Committed Purchaser in such Ownership Group, the Issuer and the Servicer.  Each Managing Agent will (on behalf of the related Committed Purchasers) respond to any such request by providing a response to the Issuer, the Servicer and each other Managing Agent not later than fifteen (15) days prior to the Existing Scheduled Commitment Termination Date, provided, that a failure by any Managing Agent to respond on or before the fifteenth (15th) day prior to the Existing Scheduled Commitment Termination Date shall be deemed to be a rejection of the requested extension.  On the fifteenth (15th) day prior to the Existing Scheduled Commitment Termination Date, the Issuer will notify each Managing Agent in writing which Ownership Groups, if any, have elected to extend the Existing Scheduled Commitment Termination Date for an additional period.  Notwithstanding the foregoing, no agreement to an extension with respect to any Conduit Purchaser shall be effective unless the available commitments of the Conduit Support Providers under the applicable Conduit Support Documents and the credit and/or liquidity coverage committed under the program-wide credit and/or liquidity facilities for the commercial paper program of their respective Conduit Purchaser will continue to be in effect after such extension in the aggregate amounts, and for the period of time, necessary to maintain the then-current ratings of the respective Conduit Purchaser’s Commercial Paper Notes.
(d)If the Issuer requests the Managing Agents to extend the Scheduled Commitment Termination Date pursuant to Section 2.2(c), and some but less than all of the Managing Agents consent to such extension, then the Issuer may arrange for an assignment to one or more financial institutions of all the rights and obligations hereunder of each such non-renewing Managing Agent in accordance with the terms hereof; provided, however, that any such assignment must result in the payment in full of all amounts then payable to each such non-renewing Managing Agent and each member of its related Ownership Group (each, a “Non-Renewing Ownership Group”).  Any such assignment shall become effective on the Existing Scheduled Commitment Termination Date.  Each Managing Agent for a Non-Renewing Ownership Group, and each member of such Non-Renewing Ownership Group, shall cooperate fully with the Issuer in effectuating any such assignment.
(e)If the Issuer requests the Managing Agents to extend the Scheduled Commitment Termination Date pursuant to Section 2.2(c), and some but less than all of the Managing Agents consent to such renewal, and if none or less than all the Commitments of the Managing Agents for the Non-Renewing Ownership Groups are assigned as provided hereunder, then:
(i)the extended Scheduled Commitment Termination Date shall be effective with respect to the renewing Ownership Groups only;
(ii)the Commitments of all Non-Renewing Ownership Groups shall expire on the Existing Scheduled Commitment Termination Date;
(iii)this Agreement and the Commitments of the renewing Ownership Groups shall remain in effect in accordance with their terms notwithstanding the expiration of the Commitments of the Non-Renewing Ownership Groups; and
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(iv)an Amortization Period shall commence with respect to the portion of the Series 2017-VFN Notes allocated to any Non-Renewing Ownership Group and Available Funds shall be applied in respect thereof as provided in Section 4.2(e) of the Series 2017-VFN Supplement.
When the principal amount of the Ownership Tranche of any Non-Renewing Ownership Group has been reduced to zero and all accrued interest allocable thereto and all other amounts owing to such Ownership Group hereunder shall have been paid in full, then the members of such Ownership Group shall cease to be parties to this Agreement for any purpose.
(f)If the Issuer requests the Managing Agents to extend the Scheduled Commitment Termination Date and none of the Managing Agents consent to such renewal, then:
(i)the original Scheduled Commitment Termination Date shall remain in effect; and
(ii)the Amortization Period shall commence as of the Existing Scheduled Commitment Termination Date.
SECTION 2.3Interest, Fees, Expenses, Payments, Etc.
(a)Each Owner’s Percentage Interest of the Note Principal Balance of its Ownership Group’s Series 2017-VFN Note shall bear interest for each Interest Period at a rate per annum equal to the Note Rate applicable to such Owner.  The amount of monthly interest (“Monthly Interest”) distributable with respect to the Series 2017-VFN Notes on any Payment Date, shall be an amount equal to the aggregate sum for each Owner during the related Interest Period of (i) the product of (x) the Note Rate for such Ownership Group, (y) the average daily Note Principal Balance of the related Ownership Group during the preceding Interest Period and (z) a fraction, the numerator of which is the actual number of days elapsed in the related Interest Period and the denominator of which is 360 and (ii) the total accrued and unpaid VFN Non-Use Fee for the related Ownership Tranche for the preceding Interest Period; provided, however, that when calculating the Note Rate for any Ownership Group by reference to LIBOR (or the then-current Benchmark), in the event LIBOR (or the then-current Benchmark) would be a rate less than zero percent per annum, such rate shall be rounded up to zero percent per annum.  On the Determination Date preceding each Payment Date, the Servicer shall determine the excess, if any (the “Monthly Interest Shortfall”), of (x) the aggregate Monthly Interest for the Interest Period applicable to such Payment Date over (y) the amount which will be available to be distributed to Series 2017-VFN Noteholders on such Payment Date in respect thereof pursuant to the Series 2017-VFN Supplement.  If the Monthly Interest Shortfall with respect to any Payment Date is greater than zero, an additional amount (“Monthly Additional Interest”) equal to the product of (i) the Note Rate for the Interest Period commencing on the related Payment Date (or, for subsequent Interest Periods, the Note Rate for such subsequent Interest Period), (ii) such Monthly Interest Shortfall (or the portion thereof which has not been paid to Series 2017-VFN Noteholders) and (iii) a fraction, the numerator of which is the amount of days elapsed in such Interest Period (or in a subsequent Interest Period) until such amount is paid, and the denominator of which is 360, shall be payable as provided in the Series 2017-VFN Supplement with respect to the Series 2017-VFN Notes on each Payment Date following such Payment Date to and including the date on which such Monthly Interest Shortfall is paid to Series 2017-VFN Noteholders.  Notwithstanding anything to the contrary herein or in the Series 2017-VFN Supplement, Monthly Additional Interest shall be payable or distributed to Series 2017-VFN Noteholders only to the extent permitted by applicable law.
(b)The Note Principal Balance of each Series 2017-VFN Note shall be paid as provided in the Series 2017-VFN Supplement.  Monthly Interest for each Interest Period shall be due and payable on each Payment Date as provided in the Series 2017-VFN Supplement.  Each Managing Agent shall allocate payments in reduction of the Note Principal Balance of the Series 2017-VFN Note held by it to the Owners in the related Ownership Group pro rata based on their respective Percentage Interests.  Each Managing Agent shall allocate payments of interest in respect of the Note Principal Balance of the Series 2017-VFN Note held by it to Owners in the related Ownership Group based upon the respective amounts of interest due and payable to them (calculated at the applicable Note Rate), determined as provided in this Section 2.3.
(c)On the 2020 Amendment Closing Date, the Transferor shall pay to each Managing Agent, for the account of the Owners in the related Ownership Group, the Upfront Fee.  On each Payment Date, the Issuer shall pay to each Managing Agent (as a portion of the Monthly Interest payable on such Payment Date), for the account of the Owners in the related Ownership Group, a fee equal to the product of (i) the VFN Non-Use Fee Rate applicable to the immediately preceding Interest Period (or portion thereof) and (ii) an amount equal to the excess (if any) of (A) the daily weighted average Commitment for such Ownership Group as in effect from time to time during the immediately preceding Interest Period (or portion thereof) over (B) the daily weighted average Note Principal Balance of the Series 2017-VFN Note held by such Ownership Group during the immediately preceding Interest Period (or portion thereof) (the “VFN Non-Use Fee”).
(d)Any interest, fees or other amounts due and payable hereunder (without regard to any limitations set forth herein on the sources from which such amount may be paid) which are not paid on the due date thereof (including Monthly Interest payable pursuant to clause (b) and fees payable pursuant to clause (c)) shall accrue interest (after as well as before judgment) at the applicable Note Rate from time to time in effect from and including the due date thereof to but excluding the date such amount is actually paid.
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(e)Unless otherwise specified in this Agreement, interest calculated by reference to the Commercial Paper Rate or the Eurodollar Rate (or the correlative rate based on the then-current Benchmark) shall be calculated on the basis of a 360-day year for the actual days elapsed.  Interest calculated by reference to the Prime Rate or the Federal Funds Effective Rate shall be calculated on the basis of a 365 or 366 day year, as applicable, for the actual days elapsed.  Periodic fees or other periodic amounts payable hereunder shall be calculated, unless otherwise specified in this Agreement or the applicable Fee Letter, on the basis of a 360 day year and for the actual days elapsed.
(f)All payments to be made hereunder or under the Indenture, whether on account of principal, interest, fees or otherwise, shall be made without setoff or counterclaim and shall be made prior to 12:00 p.m., New York City time, on the due date thereof to the Administrative Agent or the applicable Managing Agent, as the case may be, at its account specified by the Administrative Agent or such Managing Agent on Schedule I hereto or otherwise specified from time to time, in U.S. dollars and in immediately available funds.  Payments received by such Managing Agent after 12:00 p.m., New York City time, shall be deemed to have been made on the next Business Day, unless otherwise agreed to by such Managing Agent.  Notwithstanding anything herein to the contrary, if any payment due hereunder becomes due and payable on a day other than a Business Day, the payment date thereof shall be extended to the next succeeding Business Day and interest shall accrue thereon at the applicable rate during such extension.  To the extent that (i) the Issuer, the Indenture Trustee or the Servicer makes a payment to the Administrative Agent or a Managing Agent or Owner or (ii) the Administrative Agent or a Managing Agent or Owner receives or is deemed to have received any payment or proceeds for application to an obligation, which payment or proceeds or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other party under any bankruptcy or insolvency law, state or federal law, common law, or for equitable cause, then, to the extent such payment or proceeds are set aside, the obligation or part thereof intended to be satisfied shall be revived and continue in full force and effect, as if such payment or proceeds had not been received or deemed received by the Administrative Agent or such Managing Agent or Owner, as the case may be.
(g)At or before 4:00 p.m., New York City time, on the second Business Day following the last day of each Interest Period (the “Note Rate Determination Date”), each Managing Agent shall notify the Servicer, the Administrative Agent, the Indenture Trustee and the Issuer of (i) the Note Rate for such Managing Agent’s related Ownership Group for the related Interest Period (or portion thereof), and (ii) if applicable, the date on which the Liquidity Funding Rate became applicable to the Percentage Interest of the Note Principal Balance or a portion thereof held by an Owner in the related Ownership Group.  Such notification may be based on such Managing Agent’s determination of the Note Rate (and each component thereof) for such immediately preceding Interest Period.
SECTION 2.4Requirements of Law.
(a)In the event that any Owner shall have reasonably determined that any Regulatory Change shall result in (i) any fee, expense or increased cost charged to, incurred or otherwise suffered by such Owner, (ii) the imposition or modification of any reserve, special deposit, compulsory loan or similar requirement against assets held by, deposits or other liabilities in or for the account of, advances, loans or other extensions of credit by, or any other acquisition of funds by, such Owner, (iii) a reduction in the rate of return on such Owner’s capital or reduction in the amount of any sum received or receivable by such Owner or (iv) an internal capital charge or other imputed cost determined by such Owner to be allocable to the Issuer or the transactions contemplated in this Agreement in connection therewith, and the result of any of the foregoing is to increase the cost to such Owner, by an amount which such Owner in good faith deems to be material, of maintaining its Commitment or its interest in the Series 2017-VFN Notes or to reduce any amount receivable in respect thereof, then, in any such case, after submission by such Owner to the Managing Agent for its Ownership Group, if applicable, of a written request therefor and the submission by such Managing Agent to the Issuer, the Administrative Agent and the Servicer of such written request therefor, the Issuer shall pay, in accordance with the priorities set forth in the Series 2017-VFN Supplement, to such Managing Agent for the account of such Owner, any additional amounts necessary to compensate such Owner for such increased cost or reduced amount receivable, to the extent not already reflected in the applicable interest rate, from the Payment Date following receipt by the Issuer of such request for compensation under this Section 2.4(a) of this Agreement, if such request is received by the Issuer at least five Business Days prior to such Payment Date, and otherwise from the following Payment Date, until payment in full thereof (after as well as before judgment).
(b)In the event that any Owner shall have reasonably determined that any Regulatory Change has or would have the effect of reducing the rate of return on such Owner’s capital or on the capital of any Person controlling any Owner as a consequence of its obligations hereunder or its maintenance of its Commitment or its interest in the Series 2017-VFN Notes to a level below that which such Owner, or such Person could have achieved but for such Regulatory Change (taking into consideration such Owner’s or such Person’s policies with respect to capital adequacy) by an amount in good faith deemed by such Owner or such Person to be material, then, from time to time, after submission by such Owner to the Managing Agent for its Ownership Group, if applicable, of a written request therefore and submission by such Managing Agent to the Issuer, the Administrative Agent and the Servicer of such written request therefor, the Issuer shall pay to such Managing Agent for the account of such Owner such additional amount or amounts as will compensate such Owner or such Person, as applicable, for such reduction, from the Payment Date following receipt by the Issuer of such request for compensation under this Section 2.4(b), if such request is received by the Issuer at least five (5) Business Days prior to such Payment Date, and otherwise from the following Payment Date, until payment in full thereof (after as well as before judgment).  Nothing in this Section 2.4(b) shall be deemed to require the Issuer to pay any amount to an Owner to the extent such Owner has been compensated therefor under another provision of this Agreement or to the extent such amount is already reflected in the applicable interest rate.
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(c)Each Owner claiming increased amounts described in Section 2.4(a) or 2.4(b) of this Agreement will prepare and, if applicable, furnish to the Managing Agent for its Ownership Group (together with its request for compensation), a certificate prepared in good faith setting forth the basis and the calculation of the amount (in reasonable detail) of each request by such Owner for any such increased amounts or reductions referred to in Section 2.4(a) or 2.4(b) hereof.  Any such certificate shall be conclusive absent manifest error, and such Managing Agent shall deliver a copy thereof to the Issuer, the Administrative Agent and the Servicer.  Any failure on the part of any Owner to demand compensation for any amount pursuant to Section 2.4(a) or 2.4(b) hereof with respect to any period shall not constitute a waiver of such Owner’s right to demand compensation with respect to such period.
SECTION 2.5Taxes.
(a)All payments made to the Owners, the Managing Agents or the Administrative Agent under this Agreement and the Indenture (including all amounts payable with respect to the Series 2017-VFN Notes) shall, to the extent allowed by law, be made free and clear of, and without deduction or withholding for or on account of, any present or future income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority (collectively, “Taxes”), excluding (i) income taxes (including branch profit taxes, minimum taxes and taxes computed under alternative methods, at least one of which is based on or measured by net income), franchise taxes (imposed in lieu of income taxes), or any other taxes based on or measured by the net income of such Owner, Participant, Managing Agent or the Administrative Agent (as the case may be) or the gross receipts or income of such Owner, Participant, Managing Agent or the Administrative Agent, as the case may be; (ii) any Taxes that would not have been imposed but for the failure of such Owner, Participant, Managing Agent or the Administrative Agent, as applicable, to provide and keep current (to the extent legally able) any certification or other documentation required to qualify for an exemption from, or reduced rate of, any such Taxes or required by this Agreement to be furnished by such Owner, Participant, Managing Agent or the Administrative Agent, as applicable; (iii) any Taxes imposed as a result of a change by any Owner or Participant of its Investing Office (other than changes required by law); and (iv) any U.S. federal withholding Taxes imposed under FATCA (all such excluded taxes being hereinafter called “Excluded Taxes”).  If, as a result of any change in law, treaty or regulation or in the interpretation or administration thereof by any governmental or regulatory agency or body charged with the administration or interpretation thereof, or the adoption of any law, treaty or regulation, any Taxes, other than Excluded Taxes (all such changes being hereinafter called “Specified Tax Changes”), are required to be withheld from any amounts payable to an Owner or Managing Agent or the Administrative Agent hereunder or under the Indenture, then, after submission by any Owner to the Managing Agent for its Ownership Group (in the case of an amount payable to an Owner) and by any Managing Agent or the Administrative Agent to the Issuer and the Servicer of a written request therefor, the amounts so payable to such Owner or Managing Agent or the Administrative Agent, as applicable, shall be increased by the Issuer, and the Issuer shall pay, in accordance with the priorities set forth in the Series 2017-VFN Supplement, to the applicable Managing Agent for the account of such Owner or for its own account or to the Administrative Agent, as applicable, the amount of such increase to the extent necessary to yield to such Owner or Managing Agent or the Administrative Agent, as applicable (after payment of all such Taxes) interest or any such other amounts payable hereunder or thereunder at the rates or in the amounts specified in this Agreement and the Indenture; provided, however, that the amounts so payable to such Owner or Managing Agent or the Administrative Agent shall not be increased pursuant to this Section 2.5(a) if such requirement to withhold results from the failure of such Person to comply with Section 2.5(c) hereof.  Whenever any Taxes are payable on or with respect to amounts distributed to an Owner or Managing Agent or the Administrative Agent, as promptly as possible thereafter the Servicer shall send to the Managing Agent, on behalf of such Owner, or to such Managing Agent or the Administrative Agent, as applicable, a certified copy of an original official receipt showing payment thereof.  If the Issuer fails to pay any Taxes when due to the appropriate taxing authority or fails to remit to the Managing Agent, on behalf of itself or such Owner, or to such Managing Agent or the Administrative Agent, as applicable, the required receipts or other required documentary evidence, the Issuer shall promptly pay to such Managing Agent on behalf of such Owner or to such Managing Agent or the Administrative Agent for its own account, as applicable, any incremental taxes, interest or penalties that may become payable by such Owner or Managing Agent or the Administrative Agent, as applicable, as a result of any such failure.
(b)An Owner claiming increased amounts under Section 2.5(a) hereof for Taxes paid or payable by such Owner will furnish to the applicable Managing Agent a certificate prepared in good faith setting forth the basis and amount of each request by such Owner for such Taxes, and such Managing Agent shall deliver a copy thereof to the Issuer, the Administrative Agent and the Servicer.  A Managing Agent or the Administrative Agent claiming increased amounts under Section 2.5(a) hereof for its own account for Taxes paid or payable by such Managing Agent or the Administrative Agent, as applicable, will furnish to the Issuer and the Servicer a certificate prepared in good faith setting forth the basis and amount of each request by the Managing Agent or the Administrative Agent for such Taxes.  Any such certificate of an Owner or Managing Agent or the Administrative Agent shall be conclusive absent manifest error.  Failure on the part of any Owner or Managing Agent or the Administrative Agent to demand additional amounts pursuant to Section 2.5(a) of this Agreement with respect to any period shall not constitute a waiver of the right of such Owner or Managing Agent or the Administrative Agent, as the case may be, to demand compensation with respect to such period.  All such amounts shall be due and payable to such Managing Agent on behalf of such Owner or to such Managing Agent or the Administrative Agent for its own account, as the case may be, on the Payment Date following receipt by the Issuer of such certificate, if such certificate is received by the Issuer at least five (5) Business Days prior to the Determination Date related to such Payment Date and otherwise shall be due and payable on the following Payment Date (or, if earlier, on the Series 2017-VFN Stated Maturity Date).
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(c)Each Owner and each Participant holding an interest in Series 2017-VFN Notes agrees that prior to the date on which the first interest or fee payment hereunder is due thereto, it will deliver to the Issuer, the Servicer, the Indenture Trustee, the applicable Managing Agent and the Administrative Agent (i) (x) if such Owner or Participant is not a “United States person” as defined in Section 7701(a)(30) of the Code, two duly completed copies of the U.S. Internal Revenue Service Form W8ECI, Form W8BEN claiming treaty benefits, Form W8BEN-E, Form W8IMY or Form W8EXP, or successor applicable forms required to evidence that the Owner or Participant is entitled to receive payments under this Agreement and with respect to the Series 2017-VFN Notes without deduction or withholding of any United States federal income taxes, or (y) if such Owner or Participant is a “United States person,” a duly completed U.S. Internal Revenue Service Form W9 or successor applicable or required forms, and (ii) such other forms and information as may be required to confirm the availability of any applicable exemption from United States federal, state or local withholding and backup withholding taxes.  Each Owner or Participant holding an interest in Series 2017-VFN Notes also agrees to deliver to the Issuer, the Servicer, the Indenture Trustee, the applicable Managing Agent and the Administrative Agent two further copies of such Form W8ECI, Form W8BEN, Form W8BEN-E, Form W8IMY or Form W8EXP or Form W9, as applicable, or such successor applicable forms or other manner of certification, as the case may be, on or before the date that any such form expires or becomes obsolete or after the occurrence of any event requiring a change in the most recent form previously delivered by it hereunder, and such extensions or renewals thereof as may reasonably be requested by the Servicer, the Indenture Trustee, the Issuer, a Managing Agent or the Administrative Agent, unless in any such case, solely as a result of a change in treaty, law or regulation occurring prior to the date on which any such delivery would otherwise be required, the Owner is no longer eligible to deliver the thenapplicable form set forth above and so advises the Servicer, the Indenture Trustee, the Issuer, the applicable Managing Agent and the Administrative Agent.
(d)If a payment made to a recipient hereunder would be subject to U.S. federal withholding tax imposed by FATCA if such recipient were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such recipient shall deliver to the Issuer, the Servicer, the Indenture Trustee, the applicable Managing Agent and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by such persons such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Issuer, the Servicer, the Indenture Trustee, the applicable Managing Agent and the Administrative Agent as may be necessary for such persons to comply with their obligations under FATCA and to determine that such recipient has complied with such recipient’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.
SECTION 2.6Indemnification.
(a)The Issuer hereby agrees, subject to the terms of the Series 2017-VFN Supplement, to indemnify (and pay to) the Administrative Agent, each Managing Agent, each Conduit Trustee, each Collateral Agent and each Owner, and their respective officers, directors, employees, stockholders, members, agents, representatives, assignees, successors, and affiliates (each an “Indemnified Party”) from and against any and all damages, losses, claims, liabilities, costs, expenses and for all other amounts payable, including reasonable accountants’ and attorneys’ fees (which attorneys may be employees of the applicable Indemnified Party or its assigns) and disbursements (all of the foregoing being collectively referred to as “Indemnified Amounts”) awarded against or incurred by any of them, excluding (x) Indemnified Amounts to the extent a final judgment of a court of competent jurisdiction holds that such Indemnified Amounts resulted from gross negligence or willful misconduct on the part of the Indemnified Party seeking indemnification; (y) Indemnified Amounts to the extent the same includes losses in respect of Receivables that are uncollectible on account of the insolvency, bankruptcy or lack of creditworthiness of the related Obligor; or (z) Excluded Taxes relating to an Indemnified Amount solely in respect of Taxes, arising out of or as a result any of the following:
(i)the failure of any Receivable reported by the Issuer as an Eligible Receivable to be an Eligible Receivable at the time of transfer to the Issuer;
(ii)any representation or warranty made or deemed made by the Issuer (or any officers of the Issuer) under or in connection with this Agreement, any other Transaction Document or any other information or report delivered by any such Person pursuant hereto or thereto, which shall have been false or incorrect when made or deemed made;
(iii)the failure by the Issuer to comply with any applicable Requirement of Law with respect to any Contract or Receivable;
(iv)any failure of the Issuer to perform its duties, covenants or other obligations in accordance with the provisions of this Agreement or any other Transaction Document;
(v)any products liability, personal injury or damage suit or other similar claim arising out of or in connection with products or services that are the subject of any Contract or any Receivable;
(vi)any dispute, defense, claim or offset (other than the bankruptcy of an Obligor, unless the basis for any avoidance action, or any diminution in the claim related to any Receivable, during any bankruptcy proceeding relates to any action or omission on the part of the Issuer) of the Obligor to the payment of any Receivable (including, without limitation, a defense based on such Receivable or the related Contract not being a legal, valid and binding obligation of such Obligor enforceable against it in accordance with its terms);
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(vii)the commingling of Collections of Receivables at any time with other funds;
(viii)any investigation, litigation or proceeding related to or arising from this Agreement or the other Transaction Documents, the transactions contemplated hereby and thereby, the transfer of the Receivables to the Issuer, or any other investigation, litigation or proceeding relating to the Issuer in which any Indemnified Party becomes involved as a result of any of the transactions contemplated hereby;
(ix)any inability to litigate any claim against any Obligor in respect of any Receivable as a result of such Obligor being immune at the time of the transfer of such Receivable from the applicable Originator to the Seller, from the Seller to the Transferor, and from the Transferor to the Issuer, from civil and commercial law and suit;
(x)any failure to vest and maintain vested in the Issuer, legal and equitable title to, and ownership of, the Receivables (and the Related Rights relating thereto), the Trust Assets and the Collections, free and clear of any Lien;
(xi)the failure to have filed, or any delay in filing, financing statements or other similar instruments or documents under the UCC of any applicable jurisdiction or other applicable laws with respect to the Lien of the Indenture Trustee in the Collateral;
(xii)the failure of the Transferor to receive reasonably equivalent value for the Receivables and Related Rights that it transfers to the Issuer;
(xiii)any action or omission by the Issuer that reduces or impairs the rights of the Issuer or its assigns with respect to any Receivable or the ability to collect the principal balance of such Receivable;
(xiv)any transfer under the Receivables Sale Agreement, the Receivables Purchase Agreement or the Transfer and Servicing Agreement being found to be void by a court of competent jurisdiction;
(xv)the failure by the Issuer to pay when due any taxes owed by it, including, without limitation, sales, excise or personal property taxes;
(xvi)any attempt by any Person to void any transfer hereunder based on the acts or omissions of the Issuer; or
(xvii)the failure of the principal balance of any Receivable to equal the amount reported or represented by the Issuer as the principal balance of such Receivable.
(b)The Servicer shall indemnify and hold harmless each Indemnified Party against Indemnified Amounts, as incurred (payable promptly upon written request), for or on account of or arising from or in connection with, or otherwise with respect to, any breach of any representation, warranty, covenant, agreement or other obligation of the Servicer set forth in this Agreement, the Transfer and Servicing Agreement or any other Transaction Document to which the Servicer is a party, or any breach of any representation or warranty set forth in any certificate or report of the Servicer delivered pursuant hereto or thereto; provided, however, that (i) the Servicer shall not be so required to indemnify any such Indemnified Party or otherwise be liable to any such Indemnified Party hereunder for any Indemnified Amounts incurred for or on account of or arising from or in connection with or otherwise with respect to any breach of a covenant set forth in the Transfer and Servicing Agreement a remedy for the breach of which is provided in Sections 2.05 of the Transfer and Servicing Agreement and (ii) the Servicer shall not be required to indemnify any Indemnified Party for (x) Indemnified Amounts to the extent a final judgment of a court of competent jurisdiction holds that such Indemnified Amounts resulted from gross negligence or willful misconduct on the part of the Indemnified Party seeking indemnification; (y) Indemnified Amounts to the extent the same includes losses in respect of Receivables that are uncollectible on account of the insolvency, bankruptcy or lack of creditworthiness of the related Obligor; or (z) Excluded Taxes.
(c)Subject to paragraph (d) below, in order for an Indemnified Party to be entitled to any indemnification provided for under this Agreement in respect of, arising out of or involving a claim made by any Person against the Indemnified Party, such Indemnified Party must notify the Issuer or the Servicer, as applicable, of the claim made by a third party promptly after receipt by such Indemnified Party of written notice of such claim.  Thereafter, the Indemnified Party shall deliver to the Issuer or the Servicer, as applicable, within a reasonable time after the Indemnified Party’s receipt thereof, copies of all notices and documents (including court papers) received by the Indemnified Party relating to such claim.
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(d)If any action or proceeding (including, without limitation, any governmental proceeding) is brought or asserted against any Indemnified Party in respect of which indemnity may be sought against the Issuer or the Servicer, as applicable, the Indemnified Party shall promptly notify the Issuer or the Servicer, as applicable, of the commencement of such action or proceeding; provided, however, that failure to notify the Issuer or the Servicer, as applicable, will not relieve the Issuer or the Servicer, as applicable, of any liability or obligation hereunder except to the extent it is materially prejudiced by such failure.  Upon receipt of such notice, the Issuer or the Servicer, as applicable, may assume the defense of such action or proceeding, including the employment of counsel satisfactory to the Indemnified Parties in their reasonable judgment and the payment of all related expenses; provided that the Issuer or the Servicer, as applicable, admits in writing its liability to indemnify the Indemnified Party with respect to all elements of such claim in full.  Each Indemnified Party shall have the right to employ separate counsel in any such action or proceeding and to participate in (but not control) the defense thereof, but the fees and expenses of such counsel shall be at its own expense unless (a) the Issuer or the Servicer, as applicable, shall have failed to assume or continue the defense of such action or proceeding, (b) the named parties to any such action or proceeding (including any impleaded parties) include both such Indemnified Party and the Issuer or the Servicer, as applicable, or another person or entity that may be entitled to indemnification from the Issuer or the Servicer, as applicable (by virtue of this Agreement or otherwise), and such Indemnified Party shall have been advised by counsel that there may be one or more legal defenses available to such Indemnified Party which are different from or additional to those available to the Issuer or the Servicer, as applicable, or such other party or shall otherwise have reasonably determined the co-representation would present such counsel with a conflict of interest, or (c) the Issuer or the Servicer, as applicable, and the Indemnified Parties shall have mutually agreed to the retention of separate counsel. Anything contained in this Agreement to the contrary notwithstanding, neither the Issuer nor the Servicer shall be required or entitled to assume the defense of any part of a third party claim that specifically seeks an order, injunction or other equitable relief or relief for other than money damages against an Indemnified Party.
(e)In the event that for any reason, (i) the basis for calculation of interest on any Conduit Purchaser’s Percentage Interest of the Note Principal Balance shall change from the Commercial Paper Rate to the Liquidity Funding Rate, (ii) any Owner receives any repayment of its share of the Note Principal Balance (x) that is on a date other than a Payment Date or (y) upon fewer than three (3) Business Days’ prior written notice, or (iii) the Issuer shall fail to borrow any Note Principal Balance Increase on the date specified in the related Funding Notice, then, in any such case the Issuer agrees to indemnify each affected Owner against, and to promptly pay directly to such Owner, subject to the terms of the Series 2017-VFN Supplement, the amount equal to the Breakage Costs with respect thereto.  A statement setting forth in reasonable detail the calculations of any additional amounts payable pursuant to this Section, submitted by an Owner or Managing Agent or by the Administrative Agent, as the case may be, to the Issuer and the Servicer shall be conclusive absent manifest error.
SECTION 2.7Expenses, Etc.
(a)The Issuer agrees to pay to the Administrative Agent, each Managing Agent and each Owner, all reasonable costs and expenses, including, without limitation, the reasonable fees and out of pocket expenses of counsel, incurred by any of them in connection with (i) the preparation, execution, and delivery of this Agreement and each other Transaction Document, (ii) any amendments of, or waivers or consents under, this Agreement or the Transaction Documents, and (iii) the enforcement of this Agreement or any of the Transaction Documents, and the other documents delivered thereunder or in connection therewith.
(b)The Issuer agrees to pay any and all reasonable fees and expenses (including, without limitation, rating agency fees and expenses and fees and expenses of counsel) incurred by any Conduit Purchaser or Committed Purchaser in connection with an investment in the Series 2017-VFN Notes and any and all stamp, transfer and other similar taxes (other than Excluded Taxes and Taxes covered by Section 2.5 hereof) and governmental fees payable in connection with the execution, delivery, filing and recording of any of the Transaction Documents and each related Support Facility, and agrees to hold each Owner and Managing Agent and the Administrative Agent harmless from and against any liabilities with respect to or resulting from any delay in paying or any omission to pay such taxes and fees.
SECTION 2.8Successor USD LIBOR.
(a)Benchmark Replacement.  Notwithstanding anything to the contrary herein or in any other Transaction Document, upon the occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, the Administrative Agent, the Series 2017-VFN Noteholders and the Transferor may amend this Agreement to replace USD LIBOR with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. on the fifth (5th) Business Day after the Administrative Agent has posted such proposed amendment to all Series 2017-VFN Noteholders and the Transferor so long as the Administrative Agent has not received, by such time, written notice of objection to such amendment from the Series 2017-VFN Majority Holders.  Any such amendment with respect to an Early Opt-in Election will become effective on the date the Series 2017-VFN Majority Holders have delivered to the Administrative Agent written notice that such Series 2017-VFN Majority Holders accept such amendment.  No replacement of USD LIBOR with a Benchmark Replacement pursuant to this Section 2.8 will occur prior to the applicable Benchmark Transition Start Date
(b)Benchmark Replacement Conforming Changes.  In connection with the implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Transaction Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement.
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(c)Notices; Standards for Decisions and Determinations.  The Administrative Agent will promptly notify the Transferor and the Series 2017-VFN Noteholders of (i) any occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date and Benchmark Transition Start Date, (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes and (iv) the commencement or conclusion of any Benchmark Unavailability Period.  Any determination, decision or election that may be made by the Administrative Agent or the Series 2017-VFN Noteholders pursuant to this Section 2.8, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party hereto, except, in each case, as expressly required pursuant to this Section 2.8.
(d)Benchmark Unavailability Period.  Upon the Transferor’s receipt of notice of the commencement of a Benchmark Unavailability Period, the Transferor may revoke any Funding Notice for which the related Increase Date has not occurred.
(e)Indenture Trustee and Paying Agent Obligations and Liabilities. 
(i)Neither the Indenture Trustee nor Paying Agent shall be under any obligation (1) to monitor, determine or verify the unavailability or cessation of LIBOR, 3MLIBOR, USD LIBOR (or other applicable Benchmark), or whether or when there has occurred, or to give notice to any other transaction party of the occurrence of any Benchmark Transition Event, Benchmark Transition Start Date, Benchmark Unavailability Period or Benchmark Replacement Date, (2) to select, determine or designate any Benchmark Replacement, Unadjusted Benchmark Replacement, Early Opt-In Election, or other successor or replacement benchmark index, or whether any conditions to the designation of such a rate have been satisfied, or  (3) to select, determine or designate any Benchmark Replacement Adjustment, or other modifier to any replacement or successor index, or (4) to determine  whether or what Benchmark Replacement Conforming Changes are necessary or advisable, if any, in connection with any of the foregoing.”
(ii)Neither the Trustee nor Paying Agent shall be liable for any inability, failure or delay on its part to perform any of its duties set forth in this Agreement as a result of the unavailability of LIBOR, 3MLIBOR, USD LIBOR (or other applicable Benchmark) and absence of a designated replacement Benchmark, including as a result of any inability, delay, error or inaccuracy on the part of any other transaction party, including without limitation the Administrative Agent, in providing any direction, instruction, notice or information required or contemplated by the terms of this Agreement and reasonably required for the performance of such duties.
(iii)The Indenture Trustee and Paying Agent shall not have any liability for (x) the selection of major London banks or major New York banks whose quotations may be requested and used for purposes of calculating LIBOR, 3MLIBOR, USD LIBOR or for the failure or unwillingness of any major London banks or major New York banks to provide a quotation or (y) any quotations received from such London banks or New York banks, as applicable. For the avoidance of doubt, if the rate appearing on the Reuters Screen LIBOR01 is unavailable, neither the Paying Agent nor the Indenture Trustee shall be under any duty or obligation to take any action in each case whether or not quotations are provided by such London banks or New York banks, as applicable.
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ARTICLE IIA
CLOSING

Section 2A.1Closing.  The closing (the “Closing”) of the transactions described in Section 2A.2 hereof shall take place at 11:00 a.m. at the offices of Sidley Austin LLP, One South Dearborn, Chicago, Illinois 60603 on October 23, 2020, or if the conditions to closing set forth in Article III of this Agreement shall not have been satisfied or waived by such date, as soon as practicable after such conditions shall have been satisfied or waived, or at such other time, date and place as the parties shall agree upon (the date of the Closing being referred to herein as the “2020 Amendment Closing Date”).
Section 2A.2    Transactions to be Effected at the Closing.  At the Closing, upon the satisfaction of the conditions precedent described in Article III hereof, the following transactions shall be effected:
(a)The Commitment under each of the TD Bank Note and the Thunder Bay Note shall be equal to the applicable amount specified on Schedule I hereto.
(b)On the 2020 Amendment Closing Date, after giving effect to the transactions contemplated in this Article IIA, each of the Series 2017-VFN Notes shall have the respective Ownership Group Commitments, Ownership Group Percentages and Tranche Invested Amounts specified on Schedule I hereto.
(c)On the terms and subject to the conditions set forth in this Agreement, the Series 2017-VFN Supplement and the other Transaction Documents, upon the request of the Transferor following the 2020 Amendment Closing Date (i) the TD Bank Managing Agent will surrender to the Indenture Trustee for cancellation the TD Bank Note existing prior to the date hereof in exchange for a new TD Bank Note to be issued in an amount equal to the Ownership Group Commitment for its related Ownership Group equal to the applicable amount specified on Schedule I hereto and (ii) the Thunder Bay Managing Agent will surrender to the Indenture Trustee for cancellation the Thunder Bay Note existing prior to the date hereof in exchange for a new Thunder Bay Note to be issued in an amount equal to the Ownership Group Commitment for its related Ownership Group equal to the applicable amount specified on Schedule I hereto.

(d)Upon delivery to the Indenture Trustee for cancellation of the TD Bank Note and the Thunder Bay Note referenced in clauses (c)(i) and c(ii) above, respectively, the Transferor shall cause to be issued and delivered (A) the new TD Bank Note to the TD Bank Managing Agent and (B) the new Thunder Bay Note to the Thunder Bay Managing Agent, each authenticated in accordance with the Indenture and with an Ownership Group Commitment equal to the applicable amount specified on Schedule I hereto.
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ARTICLE III
CONDITIONS PRECEDENT

SECTION 3.1Conditions to 2020 Amendment Closing Date.  On or prior to the 2020 Amendment Closing Date, each of the following conditions shall have been satisfied (any or all of which may be waived by the Managing Agents in their sole and absolute discretion):

(a)Documents.  The Managing Agents shall have received on or before the date hereof each of the items listed on Schedule IV hereto, each (unless otherwise indicated) dated the date hereof, duly executed by the parties thereto and in form and substance reasonably satisfactory to the Managing Agents.
(b)Performance by USCC, the Transferor, the Issuer, the Performance Guarantor, the Originators and the Indenture Trustee.  All of the conditions precedent set forth in the Indenture have been satisfied and all of the terms, covenants, agreements and conditions set forth in this Agreement, the Indenture, each other Transaction Document to be complied with and performed by USCC, the Transferor, the Issuer, the Servicer, the Performance Guarantor, the Originators or the Indenture Trustee, as the case may be, by the date hereof have been complied with or otherwise waived by the Managing Agents.
(c)Representations and Warranties.  Each of the representations and warranties of USCC, the Transferor, the Issuer, the Servicer, the Performance Guarantor, each Originator and the Indenture Trustee made in this Agreement, the Indenture and each other Transaction Document, as applicable, are true and correct in all material respects as of the date hereof as though made as of such time (except to the extent that they expressly relate to an earlier or later time).
(d)Officer’s Certificate.  The Administrative Agent and each Managing Agent shall have received an Officer’s Certificate from the Servicer and the Transferor in form and substance reasonably satisfactory to the Administrative Agent and each Managing Agent and their respective counsel, dated as of the 2020 Amendment Closing Date, certifying as to the satisfaction of the conditions set forth in Section 3.1(b) and Section 3.1(c) hereof.
(e)Financing Statements; Search Reports.  The Administrative Agent and each Managing Agent shall have received evidence satisfactory to it that financing statements, as may be necessary or, in the opinion of the Administrative Agent, desirable under the UCC of all appropriate jurisdictions or any comparable law to perfect the transfers (including grants of security interests) under the Transaction Documents have been delivered and, if appropriate, have been duly filed or recorded and that all filing fees, taxes or other amounts required to be paid in connection therewith have been paid, including:
(i)Evidence satisfactory to the Administrative Agent and each Managing Agent of all UCC financing statements, assignments and amendments filed on or reasonably near the Original Closing Date in the offices of the Secretary of State of the applicable states and in the appropriate office or offices; and
(ii)Certified copies of requests for information (Form UCC-11) (or a similar search report certified by parties acceptable to the Managing Agents and their counsel) dated a date reasonably near the 2020 Amendment Closing Date and listing all effective financing statements which name any Originator, the Transferor, USCC and the Issuer, as seller, assignor or debtor, as applicable, and which are filed in all jurisdictions in which the filings were or will be made, together with copies of such financing statements.
(f)Ratings.  To the extent applicable, the Administrative Agent and each Managing Agent shall have received evidence that each Conduit Purchaser’s Commercial Paper Notes shall continue to be rated at least (i) “A1” by Standard & Poor’s and “P1” by Moody’s, or (ii) the required rating applicable for the related Conduit Purchaser with respect to any other Rating Agency that is rating such Conduit Purchaser’s Commercial Paper Notes, in each case as a result of entering into the transactions contemplated by this Agreement, including after giving effect to any funding to occur hereunder on the 2020 Amendment Closing Date, if applicable.
(g)No Actions or Proceedings.  No action, suit, proceeding or investigation by or before any Governmental Authority shall have been instituted to restrain or prohibit the consummation of, or to invalidate, the transactions contemplated by the Transaction Documents and the documents related thereto in any material respect.
(h)Approvals and Consents.  All Governmental Actions of all Governmental Authorities required with respect to the transactions contemplated by the Transaction Documents and the other documents related thereto shall have been obtained or made.
(i)Transferor Amount.  The Administrative Agent and each Managing Agent shall have received evidence that the “Transferor Amount” is greater than or equal to the “Minimum Transferor Amount.”
(j)Asset Base.  The Administrative Agent and each Managing Agent shall have received evidence that no Asset Base Deficiency exists as of two (2) Business Days prior to the 2020 Amendment Closing Date.
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(k)Corporate Documents.  The Administrative Agent and each Managing Agent shall have received copies, each of which shall be in form and substance satisfactory to the Administrative Agent and each Managing Agent, of the (i) certificate of formation or certificate of incorporation, limited liability company agreement or by-laws, and good standing certificate of the Transferor, the Servicer and the Performance Guarantor, as applicable, (ii) certified copy of the certificate of trust of the Issuer and the Trust Agreement, (iii) Board of Directors’ resolutions of the Transferor, the Servicer and the Performance Guarantor with respect to the Transaction Documents to which such Person is a party, and (iv) incumbency certificate of the Transferor, the Servicer and the Performance Guarantor, in each case as certified by appropriate corporate authorities, if applicable.
(l)Opinions of Counsel.  Counsel to each of the Transferor, the Issuer, the Servicer, the Originators and the Performance Guarantor shall have delivered to the Administrative Agent and each Managing Agent opinions of counsel reasonably satisfactory in form and substance to the Administrative Agent and its counsel, dated as of the 2020 Amendment Closing Date, with respect to corporate matters, legality, validity and enforceability of the Transaction Documents, no conflict of law, and non-contravention of charter documents, addressed to the Administrative Agent and each Managing Agent.
(m)Opinions of Counsel to the Trustees.  Counsel to the Indenture Trustee shall have delivered to the Administrative Agent and each Managing Agent an opinion of counsel reasonably satisfactory in form and substance to the Administrative Agent and its counsel, dated as of the 2020 Amendment Closing Date, with respect to such matters as the Administrative Agent may reasonably request.
(n)No Amortization Events, etc.  No Default, Event of Default, Amortization Event, Potential Amortization Event, Servicer Default or Potential Servicer Default shall have occurred and be continuing (in each case, before and after giving effect to the purchase).
(o)Fees.  All fees required to be paid to the Administrative Agent, the Managing Agents or the Owners on or prior to the date hereof in accordance with this Agreement, the Fee Letters and each other Transaction Document shall have been paid in full in accordance with the terms thereof.
(p)Other Documents.  The Administrative Agent and each Managing Agent shall have received such additional documents, instruments, certificates or letters as the Administrative Agent or such Managing Agent may reasonably request.
SECTION 3.2Conditions to Note Principal Balance Increases
.  The following shall be conditions precedent to the obligation of any Owner to fund its share of any Note Principal Balance Increase on any Funding Date:
(a)each Managing Agent shall have timely received a properly completed Funding Notice;
(b)all conditions precedent to such Note Principal Balance Increase on such Funding Date set forth in the Indenture or any other Transaction Document shall have been satisfied;
(c)after giving effect to the issuance of the Series 2017-VFN Notes or the funding of such Note Principal Balance Increase on such Funding Date, as applicable, all representations and warranties of USCC, the Transferor, the Issuer, the Performance Guarantor, the Servicer and each Originator, as applicable, contained herein or in the other Transaction Documents or otherwise made in writing pursuant to any of the provisions hereof or thereof shall be true and correct in all material respects with the same force and effect as though such representations and warranties had been made on and as of such date (other than representations and warranties which specifically relate to an earlier date, which shall be true and correct in all material respects as of such earlier date);
(d)USCC, the Transferor, the Issuer, the Performance Guarantor, the Servicer and each Originator shall be in compliance in all material respects with all of their respective covenants contained in the Transaction Documents to be performed on or prior to such date;
(e)the Transferor or the Servicer shall have delivered to the Managing Agents an executed Contract Additions Report relating to the applicable Transferred Assets and Related Rights;
(f)the Transferor and the Servicer shall have taken any actions necessary or advisable to maintain the Indenture Trustee’s perfected security interest in the Transferred Assets for the benefit of the Owners;
(g)no Asset Base Deficiency, Default, Event of Default, Amortization Event, Potential Amortization Event, Servicer Default or Potential Servicer Default shall have occurred and be continuing (in each case, before and after giving effect to such Note Principal Balance Increase);
(h)immediately after giving effect to such Note Principal Balance Increase:
(1)the Note Principal Balance shall not exceed the VFN Maximum Principal Amount; and
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(2)the Transferor Amount is greater than the Minimum Transferor Amount; and
(3)the Administrative Agent and each Managing Agent shall have received evidence that USCC, as sponsor, satisfies the Seller’s Interest Retention Requirements (either directly or through one or more “Wholly-Owned Subsidiaries” (as defined in and permitted by Regulation RR);
(i)the Scheduled Commitment Termination Date shall not have occurred;
(j)with respect to a Conduit Purchaser, such Conduit Purchaser has agreed to participate in such Note Principal Balance Increase;
(k)the Managing Agents shall have received a Monthly Report, computed after giving effect to the Note Principal Balance Increase on such Funding Date;
(l)no event has occurred and is continuing that would have a Material Adverse Effect; and
(m)the Servicer shall have delivered each Monthly Report, certificate or report required to be delivered by it pursuant to this Agreement, the Transfer and Servicing Agreement and each other Transaction Document to which it is a party.

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ARTICLE IV
REPRESENTATIONS, WARRANTIES AND COVENANTS

SECTION 4.1Representations and Warranties of the Servicer, the Transferor and the Issuer.  Each of the Servicer, the Transferor and the Issuer represents and warrants (each with respect to itself only) to the Owners, the Managing Agents and the Administrative Agent that as of the Original Closing Date, as of the 2020 Amendment Closing Date, and as of each Funding Date:
(a)Organization, Qualification and Good Standing.  It is a duly organized and validly existing corporation, statutory trust or limited liability company in good standing under the laws of the State of Delaware, with the power and authority under its organizational documents and under the laws of Delaware to own its assets and to conduct its business in which it is currently engaged.  It is duly qualified to do business as a foreign company and is in good standing in each jurisdiction in which the character of the business transacted by it or properties owned or leased by it requires such qualification and in which the failure so to qualify could reasonably be expected to have a material adverse effect on the business, properties, assets, or condition (financial or otherwise) of it or its ability to perform its duties under this Agreement and the other Transaction Documents to which it is a party.
(b)Due Authorization; Binding Obligation.  It has the power and authority to make, execute, deliver and perform this Agreement and the other Transaction Documents to which it is a party and all of the transactions contemplated under this Agreement and the other Transaction Documents to which it is a party, and has taken all necessary corporate, limited liability company or trust action, as applicable, to authorize the execution, delivery and performance of this Agreement and the other Transaction Documents to which it is a party.  This Agreement and the other Transaction Documents to which it is a party have been duly executed and delivered by it and constitute the legal, valid and binding obligation of such party, enforceable in accordance with their terms, except as enforcement of such terms may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally, any applicable law imposing limitations upon, or otherwise affecting, the availability or enforcement of rights to indemnification hereunder, and by the availability of equitable remedies.
(c)No Conflict.  The execution and delivery of this Agreement and the other Transaction Documents to which it is a party, and the performance by it of the transactions contemplated by this Agreement and the other Transaction Documents to which it is a party and the fulfillment of the terms hereof and thereof by it, including the issuance, sale, assignment and conveyance of the Series 2017-VFN Notes, will not conflict with or violate any provision of any existing law or regulation or any order or decree of any court or the certificate of formation, certificate of trust or limited liability company agreement of such party, or constitute (with or without notice or lapse of time or both) a default under or material breach of any mortgage, indenture, contract, deed of trust, instrument or other agreement to which it is a party or by which it or any of its properties may be bound, nor result in the creation or imposition of any Lien upon any of its properties pursuant to the terms of any such indenture, agreement or other instrument, nor violate any law or, to the best of such party’s knowledge, any order, rule or regulation applicable to such party of any Governmental Authority having jurisdiction over it or its properties (other than violations of such laws, regulations, orders, decrees, mortgages, indentures, contracts and other agreements which do not affect the legality, validity or enforceability of any of such agreements or the Receivables and which, individually or in the aggregate, would not have a material adverse effect on such party or the transactions contemplated by, or its ability to perform its obligations under, this Agreement or the other Transaction Documents to which it is a party).
(d)No Proceedings.  There are no proceedings or investigations, pending or, to the best knowledge of such party, threatened against it before any court, arbitrator or Governmental Authority (i) asserting the invalidity of this Agreement and the other Transaction Documents to which it is a party, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement and the other Transaction Documents to which it is a party, (iii) seeking any determination or ruling that, in the reasonable judgment of such party, would materially and adversely affect the performance by it of its obligations under this Agreement and the other Transaction Documents to which it is a party, (iv) seeking any determination or ruling that would materially and adversely affect the validity or enforceability of this Agreement and the other Transaction Documents to which it is a party, which, in each case, if adversely determined would be reasonably likely to result in a Material Adverse Effect, or (v) seeking to materially and adversely affect the income or franchise tax attributes of it under the United States federal or any state income or franchise tax systems.  It is not in default with respect to any order, judgment or decree of any court, arbitrator or Governmental Authority, except to the extent that any such default does not have a Material Adverse Effect.
(e)All Consents.  All authorizations, consents, orders or approvals of or registrations or declarations with any Governmental Authority required to be obtained, effected or given by such party in connection with the execution and delivery by it of this Agreement and the other Transaction Documents to which it is a party and the performance of the transactions contemplated by this Agreement and the other Transaction Documents to which it is a party by such party have been duly obtained, effected or given and are in full force and effect, except for those which the failure to obtain would not have a material adverse effect on this Agreement, the other Transaction Documents or the transactions contemplated thereby or on the ability of such party to perform its obligations under this Agreement or the other Transaction Documents to which it is a party.
(f)Licensing.  It is properly licensed in each jurisdiction to the extent required by the laws of such jurisdiction in order to originate, acquire, own, hold or service the Receivables, as applicable, except where the failure to be so licensed would not have a Material Adverse Effect.
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(g)Compliance with Requirements of Law.  It (i) shall duly satisfy all obligations on its part to be fulfilled under or in connection with each Receivable, and (ii) in the case of the Servicer, it (A) will maintain in effect all qualifications required under Requirements of Law in order to service properly each Receivable, and (B) will comply in all material respects with all other Requirements of Law in connection with servicing each Receivable, except where the failure to so comply would not have a Material Adverse Effect.
(h)Protection of Rights.  It shall take no action in violation of this Agreement which, nor omit to take in violation of this Agreement any action the omission of which, would substantially impair the rights of the Owners, the Issuer or the Indenture Trustee in any Receivable.
(i)Investment Company Act.  (i) Each of the Transferor and the Issuer is not required to be registered as an “investment company” under the Investment Company Act of 1940, as amended (the “Investment Company Act”); (ii) the Issuer satisfies the requirements to rely on the exemption from the definition of “investment company” provided by the exclusion provided by Section 3(c)(5) under the Investment Company Act, although there may be additional exclusions or exemptions available to the Issuer; and (iii) the interests under the Transaction Documents will not cause the Owners, the Managing Agents or the Administrative Agent to have an “ownership interest” in a “covered fund” for purposes of regulations adopted under Section 13 of the Bank Holding Company Act of 1956 (commonly referred to as the “Volcker Rule”).
(j)Legal Name; Location.  Its sole jurisdiction of organization is the State of Delaware and such jurisdiction has not changed within four months prior to the date of this Agreement.  Its principal place of business and chief executive office and its federal employer identification number and Delaware organizational identification number is set forth on Schedule III hereto.  It has not, and has not used at any time during the past five years, any prior legal names, trade names, fictitious names, assumed names or “doing business as” names except as set forth on Schedule III hereto.
(k)Accuracy of Information.  All certificates, reports, statements, documents and other information furnished by it to the Indenture Trustee, the Administrative Agent, the Managing Agents or any Noteholder pursuant to any provision of this Agreement or any other Transaction Document, or in connection with or pursuant to any amendment or modification of, or waiver under, this Agreement or any other Transaction Document, shall, at the time the same are so furnished, be complete and correct in all material respects on the date the same are furnished.
(l)Solvency.  No Insolvency Event with respect to it has occurred and no transfer of the Receivables and the Related Rights has been made in contemplation of the occurrence thereof.  It (i) is  not “insolvent” (as such term is defined in §101(32)(A) of the Bankruptcy Code, (ii) is able to pay its debts as they come due; and (iii) does not have unreasonably small capital for the business in which it is engaged or for any business or transaction in which it is about to engage.
(m)Use of Proceeds.  No proceeds of a funding hereunder will be used by the Transferor for a purpose that violates or would be inconsistent with Regulations T, U or X promulgated by the Board of Governors of the Federal Reserve System from time to time.
(n)Taxes.  It has filed all United States federal income tax returns (if any) and all other tax returns which are required to be filed by it and has paid all material taxes, assessments or governmental charges of any kind that are due and payable by it pursuant to such returns or pursuant to any assessment received by it; provided, that it may contest in good faith any such taxes, assessments and other charges and, in such event, may permit the taxes, assessments or other charges so contested to remain unpaid during any period, including appeals, when it is in good faith contesting the same, so long as (i) adequate reserves have been established in accordance with GAAP, (ii) enforcement of the contested tax, assessment or other charge is effectively stayed for the entire duration of such contest if such enforcement could reasonably be expected to have a material adverse effect on its financial condition or operations or its ability to perform its obligations under the Transaction Documents to which it is a party, and (iii) any tax, assessment or other charge determined to be due, together with any interest or penalties thereon, is promptly paid as required after final resolution of such contest.  The charges, accruals and reserves on its books in respect of taxes and other governmental charges are, in its opinion, adequate.  The Transferor is exclusively resident for tax purposes in the United States and, for the purposes of this Agreement and the other Transaction Documents to which it is a party, will not act through any branch or permanent establishment located outside of the United States.
(o)ERISA.  With respect to the Transferor and the Issuer only, such entity does not maintain or contribute to any Plan or Multiemployer Plan, nor has it maintained or contributed to any Plan or Multiemployer Plan within the preceding five years and its assets do not constitute the “plan assets” of any “benefit plan investor” each within the meaning of Section 3(42) of ERISA and the U.S. Department of Labor regulations set forth at 29 C.F.R. Section 2510.3-101 as modified by Section 3(42) of ERISA.
(p)No Amortization Event, Event of Default or Servicer Default.  No Default, Event of Default, Amortization Event, Potential Amortization Event, Servicer Default or Potential Servicer Default.
(q)Eligibility.  As of the 2020 Amendment Closing Date, the Initial Addition Date and as of each date on which the Asset Base is calculated, each Receivable included in such calculation as an Eligible Receivable is an Eligible Receivable on such date.
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(r)Commodity Futures Trading Act.  It is not a “commodity pool” such that an Owner would be a “commodity pool operator” with respect thereto or a “commodity pool” by reason of its ownership of the Series 2017-VFN Notes.
(s)Transaction Documents.  Each of its representations and warranties in the Indenture and the other Transaction Documents to which it is a party is true and correct in all material respects.
(t)Compliance with Credit and Collection Policies.  It has complied in all material respects with the Credit and Collection Policies with regard to each Contract and the related Receivables and Related Rights.  It has not made any change to such Credit and Collection Policies, other than as permitted under Section 4.7(u) hereof.
(u)Separateness.  Each of the Seller and USCC is, and all times since its organization has been, operated in such a manner that it would not be substantively consolidated with the Transferor and such that the separate existence of the Transferor would not be disregarded in the event of a bankruptcy or insolvency of the Seller or USCC.
(v)[Reserved].
(w)Anti-Corruption Laws and Sanctions.  It has implemented and maintains in effect policies and procedures designed to ensure compliance by it and its Subsidiaries, directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and it, each of its respective Subsidiaries, its respective officers and employees, and to its knowledge, its respective directors and agents, is in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects.  None of it, any of its Subsidiaries or any director, officer, employee, agent or affiliate of it or any of its Subsidiaries that will act in any capacity in connection with or benefit from the facility established hereby, is a Sanctioned Person.  No Note Principal Balance Increase, use of proceeds or other transaction contemplated by this Agreement will violate Anti-Corruption Laws or applicable Sanctions.
(x)Anti-Money Laundering.  It is acting on its own behalf with respect to all matters associated with this Agreement.  It undertakes to provide the Indenture Trustee and each Owner, upon its reasonable request, with all information and documents which the Indenture Trustee or such Owner requires in order to comply with its obligations under all applicable anti-money laundering laws.
(y)Authentication of Contract Additions Reports and Receivables Schedules.  The Transferor represents, warrants and agrees that transmission of each Contract Additions Report and each Receivables Schedule consisting of, including or accompanied by an electronic file (which may be a PDF or the insertion of the relevant language and names in a Word, Excel or other electronic document) and transmitted either (a) from an email address of a representative of the Seller, the Servicer or the Transferor or (b) through a virtual data room acceptable to the Administrative Agent, shall be evidence of its present intent to adopt or accept such record as the authentication of a security agreement for purposes of Sections 9-102 and 9-203 of the UCC.
SECTION 4.2Additional Representations and Warranties of the Servicer.  The Servicer, in its capacity as Servicer, represents and warrants to the Owners, the Managing Agents and the Administrative Agent that as of the Original Closing Date, as of the 2020 Amendment Closing Date, and as of each Funding Date:
(a)Material Adverse Effect.  Since the immediately preceding Funding Date (and in the case of the 2020 Amendment Closing Date, since June 30, 2020), no event has occurred that would have a Material Adverse Effect.
(b)Compliance with Credit and Collection Policies.  It has complied in all material respects with the Credit and Collection Policies with regard to each Contract and the related Receivables and Related Rights.  It has not made any change to such Credit and Collection Policies, other than as permitted under Section 4.7(u) hereof.
(c)Anti-Corruption Laws and Sanctions.  It has implemented and maintains in effect policies and procedures designed to ensure compliance by it and its Subsidiaries, directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and it, each of its respective Subsidiaries, its respective officers and employees, and to its knowledge, its respective directors and agents, is in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects.  None of it, any of its Subsidiaries or any director, officer, employee, agent or affiliate of it or any of its Subsidiaries that will act in any capacity in connection with or benefit from the facility established hereby, is a Sanctioned Person.  No Note Principal Balance Increase, use of proceeds or other transaction contemplated by this Agreement will violate Anti-Corruption Laws or applicable Sanctions.
(d)Authority.  It is duly qualified to do business and is in good standing (or is exempt from such requirements) in each State of the United States where the nature of its business requires it to be so qualified and the failure to be so qualified and in good standing would have a Material Adverse Effect on the interests of the Owners.
(e)ERISA.  (i) Each member of the ERISA Group has fulfilled its obligations under the minimum funding standards of ERISA and the Code with respect to each Plan and is in compliance in all material respects with the presently applicable provisions of ERISA and the Code with respect to each Plan, and (ii) no ERISA Event has occurred.
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SECTION 4.3Additional Representations and Warranties of the Transferor.  The Transferor represents and warrants to the Owners, the Managing Agents and the Administrative Agent that as of the Original Closing Date, as of the 2020 Amendment Closing Date, and as of each Funding Date:
(a)Issuer Existence and Authorization.  The Issuer has been duly created and is validly existing under the laws of the State of Delaware, and the Transferor has authorized the Issuer to issue the Series 2017-VFN Notes.
(b)Investment Letter.  Assuming the continuing accuracy of the representations set forth in the Investment Letter(s) delivered pursuant to this Agreement, the sale of any Series 2017-VFN Notes pursuant to the terms of this Agreement, the Indenture and the Series 2017-VFN Supplement will not require registration of such Series 2017-VFN Notes under the Securities Act.
(c)Series 2017-VFN Notes.  The Series 2017-VFN Notes have been duly and validly authorized, and, when executed and authenticated in accordance with the terms of the Indenture and the Series 2017-VFN Supplement, and delivered to and paid for in accordance with this Agreement, will be duly and validly issued and outstanding and will be entitled to the benefits of the Indenture and the Series 2017-VFN Supplement.
(d)Ownership of the Equity Certificate.  The Transferor owns of record the Equity Certificate free and clear of all Liens, warrants, options and rights to purchase.
SECTION 4.4[Reserved].
SECTION 4.5Representations and Warranties of the Conduit Purchasers and Committed Purchasers.  Each Conduit Purchaser and Committed Purchaser (each with respect to itself only) hereby makes the following representations and warranties to the Issuer, the Transferor and the Performance Guarantor.
(a)Qualified Institutional Buyer.  It is a “qualified institutional buyer” as defined in Rule 144A of the Securities Act of 1933, as amended.
SECTION 4.6Covenants of the Issuer and Transferor.  Each of the Issuer and the Transferor severally covenants and agrees, in each case as to itself individually or in such respective capacities, each with respect to itself only, through the Series 2017-VFN Stated Maturity Date, that:
(a)Compliance with Covenants.  It will perform and observe for the benefit of the Owners each of the covenants and agreements required to be performed or observed by it in this Agreement and in the Transaction Documents to which it is a party.
(b)Maintain Existence.  It will preserve and maintain its existence, rights, franchises and privileges in the jurisdiction of its formation, and qualify and remain qualified in good standing as a foreign trust or limited liability company in each jurisdiction where its business is conducted, and will obtain and maintain all requisite authority to conduct its business in each jurisdiction in which its business requires such authority.
(c)Compliance with Requirements of Law.  It shall comply in all material respects with all Requirements of Law and preserve and maintain its existence, rights, franchises, qualifications, and privileges except to the extent that the failure so to comply with such applicable Requirements of Law or the failure so to preserve and maintain such existence, rights, franchises, qualifications and privileges would not materially adversely affect the collectibility of the Receivables, its ability to conduct its business or its ability to perform its obligations under the Transaction Documents in all material respects.
(d)Ownership.  It shall take all necessary action to (i) vest legal and equitable title to the Receivables, Related Rights and Collections on such Receivables irrevocably in the Issuer, free and clear of any Liens (including, without limitation, the filing of all financing statements or other similar instruments or documents necessary under the UCC (or any comparable law) of all appropriate jurisdictions to perfect the Issuer’s interest in such Receivables, Related Rights and Collections on such Receivables and such other action to perfect, protect or more fully evidence the interest of Issuer therein as the Administrative Agent or the Indenture Trustee, acting at the written direction of the Requisite Global Majority, may reasonably request), and (ii) cooperate (as the Indenture Trustee, acting at the written direction of the Requisite Global Majority, or the Administrative Agent may reasonably request) in the establishment and maintenance, in favor of the Indenture Trustee (for the benefit of the Owners), of a valid and perfected first priority perfected security interest in the Collateral to the full extent contemplated herein and within the Indenture, free and clear of any Liens (including, without limitation, the filing of all financing statements or other similar instruments or documents necessary under the UCC (or any comparable law) of all appropriate jurisdictions to perfect the Indenture Trustee’s security interest in the Collateral and such other action to perfect, protect or more fully evidence the interest of the Indenture Trustee (for the benefit of the Owners) as the Indenture Trustee, acting at the written direction of the Requisite Global Majority, or the Administrative Agent may reasonably request.
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(e)Furnish Certain Information; Further Assurances.  It will furnish (or cause to be furnished) to each Managing Agent: (i) promptly after the execution thereof, copies of all amendments of and waivers with respect to the Transaction Documents; (ii) copies of all financial statements that the Transferor or the Issuer furnished (or required to be furnished) pursuant to the Transaction Documents concurrently therewith; (iii) a copy of each material certificate, report, statement, notice or other communication furnished (or required to be furnished) by or on behalf of the Transferor or the Issuer pursuant to the Transaction Documents concurrently therewith; (iv) a copy of each material notice, demand or other communication furnished (or required to be furnished) by or on behalf of the Transferor or the Issuer pursuant to the Transaction Documents concurrently therewith; and (v) such other information, documents, records or reports respecting the Trust Assets, the related Obligors, the Transferor or the Issuer which is in the possession or under the control of the Transferor or the Issuer, as applicable, as any such Managing Agent may from time to time reasonably request.
(f)No Liens.  Except for the conveyances under the Transaction Documents, it will not sell, pledge, assign (by operation of law or otherwise) or transfer to any other Person, or otherwise dispose of, or grant, create, incur, assume or suffer to exist any Lien on, any Receivable, Related Rights or Collections on such Receivables, whether now existing or hereafter created, or any interest therein, or assign any right to receive income in respect thereof, or take any other action inconsistent with the Issuer’s ownership of, the Receivables, Related Rights and Collections on such Receivables, except to the extent arising under any Transaction Document, and it shall defend the right, title and interest of the Issuer and the Indenture Trustee in, to and under the Receivables, the Related Rights and the Collections on such Receivables, whether now existing or hereafter created, against all claims of third parties claiming through or under USCC or its assigns.
(g)Name Change, Offices and Records.  It will not make any change to its name (within the meaning of Section 9-507 of any applicable enactment of the UCC), type or jurisdiction of organization or location of its books and records unless, at least thirty (30) days prior to the effective date of any such name change, change in type or jurisdiction of organization, or change in location of its books and records it notifies the Issuer, the Indenture Trustee, the Servicer and the Administrative Agent thereof and (except with respect to a change of location of books and records) delivers to the Indenture Trustee (i) such financing statements (Forms UCC-1 and UCC-3) which the Indenture Trustee (or its assigns), acting at the written direction of the Requisite Global Majority, or the Administrative Agent may reasonably request to reflect such name change, or change in type or jurisdiction of organization, (ii) if the Administrative Agent shall so request, an opinion of counsel, in form and substance reasonably satisfactory to such Person, as to the perfection and priority of the Issuer’s ownership interest in, and the Indenture Trustee’s security interest in the Receivables, Related Rights and Collections on such Receivables and (iii) such other documents, agreements and instruments that the Indenture Trustee, acting at the written direction of the Requisite Global Majority, or the Administrative Agent may reasonably request in connection therewith.
(h)Protection of Noteholders’ Rights.  It will take no action, nor omit to take any action, which could reasonably be expected to materially impair the rights of the Administrative Agent, the Managing Agents, the Owners and the Noteholders in the Receivables and the Related Rights granted pursuant to the Indenture, or materially adversely affect the collectability of the Trust Assets, or reschedule, revise or defer payments due on any Receivable, or amend, modify or waive in any material respect any term or condition relating to payments due on any Receivable, or modify the terms of any Receivable in a manner that would result in the dilution of such Receivable or that would otherwise prevent such Receivable from being an Eligible Receivable, except (i) in accordance with the Credit and Collection Policies (ii) as ordered by a court of competent jurisdiction or other Governmental Authority, (iii) such Receivable is deemed not to be an Eligible Receivable and such event does not result in an Asset Base Deficiency, (iv) with the prior consent of the Administrative Agent and each Managing Agent or (v) pursuant to Requirements of Law.
(i)Inspection.  It shall cooperate with USCC, the Administrative Agent and each Managing Agent in connection with any Inspection pursuant to Section 4.7(f); provided, that any such inspection of the Transferor or the Issuer shall occur at the same time as any Inspection of USCC pursuant to Section 4.7(f).
(j)Fulfillment of Obligations.  It will (i) duly observe and perform, or cause to be observed or performed, all material obligations and undertakings on its part to be observed and performed under this Agreement, the Transaction Documents and the Receivables, (ii) subject to the terms hereof and the Credit and Collection Policies, duly observe and perform all material provisions, covenants and other promises required to be observed by it under the Receivables, and (iii) pay when due (or contest in good faith) any taxes, including without limitation any sales tax, excise tax or other similar tax or charge, payable by the Transferor in connection with the Receivables and their creation and satisfaction.
(k)Enforcement.  It will take all action necessary and appropriate to enforce its rights and claims under the Transaction Documents.
(l)Notices.  It will notify each Managing Agent in writing of any of the following promptly upon learning of the occurrence thereof, describing the same and, if applicable, such written notice shall be accompanied by a statement of the chief financial officer or chief accounting officer of the Transferor describing the steps, if any, being taken with respect thereto:
(i)any Asset Base Deficiency, Default, Event of Default, Amortization Event, Potential Amortization Event, Servicer Default or Potential Servicer Default, but in any event within five (5) days;
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(ii)the institution of any litigation, investigation, arbitration proceeding or governmental proceeding against the Issuer or the Transferor which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect, or the entry of any judgment or decree or the institution of any litigation, investigation, arbitration proceeding or governmental proceeding against the Issuer or the Transferor which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect, but in any event within ten (10) Business Days;
(iii)any Lien made or asserted against any Receivable, Related Right or other Collateral other than conveyances under the Receivables Purchase Agreement, the Transfer and Servicing Agreement and the Indenture; and
(iv)any Material Adverse Effect.
(m)Transfer of Equity Certificate.  The Transferor shall not transfer any Equity Certificate issued pursuant to the Trust Agreement and held by it to any other Person.
(n)Eligible Interest Rate Caps.  The Transferor shall at all times maintain in full force and effect the Eligible Interest Rate Caps or any other hedging agreements in accordance with the Hedging Requirements specified on Exhibit G hereto.
(o)Statement for and Treatment of Sales.  The Transferor shall not treat any transfer of Receivables, Related Rights and Collections on such Receivables by USCC to the Transferor under the Receivables Purchase Agreement in any manner other than as a sale for all purposes (other than tax purposes).
(p)Compliance and Separateness.
(i)During the term of this Agreement, the Transferor will, subject to the terms of this Agreement, keep in full force and effect its existence, rights and franchises as a limited liability company under the laws of the jurisdiction of its formation and will obtain and preserve its qualification to do business in each jurisdiction in which such qualification is or shall be necessary to protect the validity and enforceability of this Agreement and the other Transaction Documents to which it is a party, and each other instrument or agreement necessary or appropriate to the proper administration of this Agreement and the transactions contemplated thereby.
(ii)Except as otherwise provided in the Transaction Documents, during the term of this Agreement the Transferor will observe the following applicable legal requirements for the recognition of the Transferor as a legal entity separate and apart from its Affiliates, and the Transferor shall:
(1)    maintain books and records separate from any other person or entity;
(2)    maintain its own deposit, securities and other account or accounts, separate from any other person or entity, with financial institutions;
(3)    ensure that, to the extent it jointly contracts with any of its members or Affiliates to do business with vendors or service providers or to share overhead expenses, the costs incurred in so doing shall be allocated fairly among such entities, and each such entity shall bear its fair share of such costs. To the extent that the Transferor contracts or does business with vendors or service providers where the goods and services provided are partially for the benefit of any other Person, the costs incurred in so doing shall be fairly allocated to or among such entities for whose benefit the goods and services are provided, and each such entity shall bear its fair share of such costs;
(4)    conduct its affairs strictly in accordance with its limited liability company agreement and observe all necessary, appropriate and customary company formalities;
(5)    ensure that its board of directors shall at all times include at least one Independent Director;
(6)    not commingle its assets with those of any other person or entity;
(7)    conduct its business (i) in its own name and not that of an Affiliate, and (ii) to the extent it maintains office space, from an office separate from that of the member (but which may be located in the same facility as and leased from the member) at which will be maintained its own separate limited liability company books and records;
(8)    other than as contemplated herein, in the Receivables Purchase Agreement or in one of the Transaction Documents and related documentation, pay its own liabilities and expenses only out of its own funds;
(9)    observe all formalities required under the Delaware Limited Liability Company Act;
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(10)    not guarantee or become obligated for the debts of any other person or entity;
(11)    ensure that no Affiliate of the Transferor shall advance funds to the Transferor, and no Affiliate of the Transferor will otherwise guaranty debts of the Transferor;
(12)    not hold out its credit as being available to satisfy the obligation of any other person or entity;
(13)    not acquire the obligations or securities of its Affiliates;
(14)    not make loans to any other person or entity or buy or hold evidence of indebtedness issued by any other person or entity;
(15)    other than as contemplated herein, in the Receivables Purchase Agreement or in one of the Transaction Documents and related documentation, not pledge its assets for the benefit of any other person or entity;
(16)    hold itself out as a separate entity from its Affiliates and not conduct any business in the name of any of its Affiliates;
(17)    correct any known misunderstanding regarding its separate identity;
(18)    ensure that decisions with respect to its business and daily operations shall be independently made by the Transferor (although the officer making any particular decision may also be an officer or director of an Affiliate of the Transferor) and shall not be dictated by an Affiliate of the Transferor;
(19)    other than organizational expenses and as expressly provided herein, pay all expenses, indebtedness and other obligations incurred by it using its own funds;
(20)    not identify itself as a division of any other person or entity;
(21)    conduct business with its Affiliates on an arm’s-length basis on terms no more favorable to either party than the terms that would be found in a similar transaction involving unrelated third parties;
(22)    not engage in any business or activity of any kind, or enter into any transaction, indenture, mortgage, instrument, agreement, contract, lease or other undertaking which is not directly related to the transactions contemplated and authorized by this Agreement or the other Transaction Documents; and
(23)    comply with the limitations on its business and activities as set forth in its certificate of formation and shall not incur indebtedness other than pursuant to or as expressly permitted by the Transaction Documents.
SECTION 4.7Covenants of the Servicer.  The Servicer covenants and agrees through the Series 2017-VFN Stated Maturity Date, that:
(a)Compliance with Covenants.  The Servicer will perform and observe for the benefit of the Owners each of the covenants and agreements required to be performed or observed by it in the Transaction Documents to which it is a party.
(b)Furnish Certain Information.  The Servicer will furnish (or cause to be furnished) to each Managing Agent: (i) promptly after the execution thereof, copies of all amendments of and waivers with respect to the Transaction Documents; (ii) copies of all financial statements, compliance certificates and other financial reports that the Servicer, the Seller, any Originator or the Servicer furnished (or required to be furnished) pursuant to the Transaction Documents concurrently therewith; (iii) a copy of each certificate, report, statement, notice or other communication furnished (or required to be furnished) by or on behalf of the Servicer, the Seller, any Originator, the Transferor, the Issuer or the Servicer to the Issuer, the Servicer, the Administrative Agent or the Indenture Trustee pursuant to the Transaction Documents concurrently therewith; (iv) a copy of each material notice, demand or other communication furnished (or required to be furnished) by or on behalf of the Servicer, the Seller, any Originator, the Transferor, the Issuer, the Servicer or the Indenture Trustee pursuant to the Transaction Documents concurrently therewith; and (v) such other information, documents, records or reports respecting the Trust Assets, the Obligors, the Servicer, the Seller, any Originator or the Servicer, or the condition or operations, financial or otherwise, of the Servicer, the Seller and the Originators, which is in the possession or under the control of the Servicer, as any such Managing Agent may from time to time reasonably request.
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(c)Reporting.  The Servicer will maintain a system of accounting established and administered in accordance with GAAP, and furnish or cause to be furnished to the Indenture Trustee and each Managing Agent at least ten (10) days prior to the effectiveness of any material change in or material amendment to the Credit and Collection Policies, a copy of the Credit and Collection Policies then in effect and a notice (i) indicating such change or amendment, and (ii) if such proposed change or amendment would be reasonably likely to materially adversely affect the collectability of the Receivables (or any Related Rights), or materially decrease the credit quality of any newly created Receivables, requesting the consent of the Administrative Agent and the Managing Agents thereto pursuant to Section 4.7(u).
(d)Notices.  The Servicer will notify each Managing Agent in writing of any of the following promptly upon learning of the occurrence thereof, describing the same and, if applicable, such written notice shall be accompanied by a statement of the chief financial officer or chief accounting officer of the Servicer describing the steps, if any, being taken with respect thereto:
(i)any Asset Base Deficiency, Default, Event of Default, Amortization Event, Potential Amortization Event, Servicer Default or Potential Servicer Default, and in any event within five (5) days;
(ii)the institution of any litigation, investigation, arbitration proceeding or governmental proceeding against the Servicer, the Seller, any Originator or any of their respective subsidiaries which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect, or the entry of any judgment or decree or the institution of any litigation, investigation, arbitration proceeding or governmental proceeding against the Servicer, the Seller, any Originator or any of their respective subsidiaries which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect, and in any event within ten (10) Business Days;
(iii)any Lien made or asserted against any Receivable, Related Rights or other Collateral, other than conveyances under the Receivables Purchase Agreement, the Transfer and Servicing Agreement and the Indenture;
(iv)the decision to appoint a new director or manager of the Transferor as the “Independent Director” for purposes of this Agreement, such notice to be issued not less than ten (10) days prior to the effective date of such appointment and to certify that the designated Person satisfies the criteria set forth in the definition herein of “Independent Director”; and
(v)any Material Adverse Effect or any event which would be reasonably likely to have a Material Adverse Effect.
(e)Compliance with Requirements of Law.  The Servicer shall duly satisfy all obligations on its part to be fulfilled under or in connection with the Trust Assets and the related Receivables, shall maintain in effect all material qualifications required under applicable Requirements of Law in order to properly service the Trust Assets and the related Receivables and shall comply in all material respects with all other applicable Requirements of Law in connection with servicing the Trust Assets and the related Receivables.
(f)Inspections.  The Servicer shall furnish to each Managing Agent from time to time such information with respect to it and the Trust Assets as such Managing Agent may reasonably request.  The Servicer will, and will cause each of USCC, the Transferor, the Issuer and the Seller to, from time to time at the sole cost and expense of the Servicer, and during regular business hours upon reasonable prior notice, permit the Administrative Agent and the Managing Agents (or their respective agents or representatives), not more than twice per calendar year unless an Asset Base Deficiency, Default, Event of Default, Amortization Event, Potential Amortization Event, Servicer Default or Potential Servicer Default has occurred and is continuing, to visit and inspect any of its properties (or the properties of the Seller or any Originator), to examine and make abstracts from any of its books and records (including, without limitation, computer files and records) in the possession or under the control of the Seller, any Originator, the Servicer, the Transferor or the Issuer relating to the Trust Assets and the related Receivables, Contracts and Obligors, and to discuss its affairs, finances and accounts with its officers, directors, employees and independent public accountants (such visit, inspection and examination, collectively, an “Inspection”).  From and after the occurrence of an Asset Base Deficiency, Default, Event of Default, Amortization Event, Potential Amortization Event, Servicer Default or Potential Servicer Default, the Administrative Agent shall be entitled to conduct an unlimited number of Inspections at the expense of the Servicer.  Nothing in this Section 4.7(f) shall derogate from the obligation of the Administrative Agent or the Servicer, the Seller or any Originator to observe any applicable Requirement of Law prohibiting disclosure of information regarding the Obligors, and the failure of the Servicer, the Seller or any Originator to provide access as provided in this Section 4.7(f) as a result of such obligation shall not constitute a breach of this Section 4.7(f).
(g)Maintenance of Records and Books.  The Servicer shall, and shall cause the Seller and each Originator to (if applicable), maintain and implement administrative and operating procedures (including the ability to recreate records evidencing the Receivables (and the Related Rights) in the event of the destruction of the originals thereof), and keep and maintain all documents, books, computer records and other information, reasonably necessary or advisable for the collection of all the Trust Assets.  Such documents, books and computer records shall reflect all facts giving rise to the Receivables (and the Related Rights), all payments and credits with respect thereto, and such documents, books and computer records shall identify the Trust Assets clearly and unambiguously to reflect that the Trust Assets are owned by the Issuer and pledged to the Indenture Trustee.  The Servicer will give the Administrative Agent and each Managing Agent prompt notice of any material change in the administrative and operating procedures referred to in the previous sentence, to the extent such change is likely to have a Material Adverse Effect.
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(h)Compliance with Credit and Collection Policies.  The Servicer will, and will cause the Seller and each Originator to (as applicable), timely and fully (i) perform and comply in all material respects with all provisions, covenants and other promises required to be observed by it under the Contracts related to the Trust Assets, and (ii) comply in all material respects with the Credit and Collection Policies in regard to the Trust Assets and the related Contracts.
(i)Ownership.  The Servicer shall, and shall cause the Seller and each Originator to (as applicable), take all necessary action to (i) vest legal and equitable title to the Receivables, Related Rights and Collections on such Receivables irrevocably in the Issuer, free and clear of any Liens (including, without limitation, the filing of all financing statements or other similar instruments or documents necessary under the UCC (or any comparable law) of all appropriate jurisdictions to perfect the Issuer’s interest in such Receivables, Related Rights and Collections on such Receivables and such other action to perfect, protect or more fully evidence the interest of Issuer therein as the Administrative Agent or the Indenture Trustee, acting at the written direction of the Requisite Global Majority, may reasonably request), and (ii) cooperate (as the Indenture Trustee, acting at the written direction of the Requisite Global Majority, or the Administrative Agent may reasonably request) in the establishment and maintenance, in favor of the Indenture Trustee (for the benefit of the Owners), of a valid and perfected first priority perfected security interest in the Collateral to the full extent contemplated herein and within the Indenture, free and clear of any Liens (including, without limitation, the filing of all financing statements or other similar instruments or documents necessary under the UCC (or any comparable law) of all appropriate jurisdictions to perfect the Indenture Trustee’s security interest in the Collateral and such other action to perfect, protect or more fully evidence the interest of the Indenture Trustee (for the benefit of the Owners) as the Indenture Trustee, acting at the written direction of the Requisite Global Majority, or the Administrative Agent may reasonably request).
(j)Collections.  The Servicer shall instruct all Obligors on the Receivables to remit all payments with respect to the Trust Assets directly to the Servicer.  The Servicer will not instruct any Obligor to make payments in respect of the Receivables or the other Trust Assets to any Person, address or location other than to the Servicer.  The Servicer shall not make any change in its instructions to Obligors regarding payments to be made to it (other than changes with respect to the mailing addresses for remittances) unless the Managing Agents shall have received, at least ten (10) Business Days before the proposed effective date therefore, written notice of such change.  In the event that any payment relating to the Trust Assets is remitted directly to the Seller or any Originator, the Servicer will, and will cause the Seller or such Originator to, cause such payments to be remitted directly to an account specified by the Servicer within two (2) Business Days following receipt thereof without deposit into any intervening account and, at all times prior to such remittance, the Servicer or the Seller or the applicable Originator will hold or will cause such payment to be held in trust for the exclusive benefit of the Indenture Trustee and the Noteholders.
(k)Protection of Noteholders’ Rights.  The Servicer shall, and shall cause the Seller and each Originator to, take no action, nor omit to take any action, which could reasonably be expected to materially impair the rights of the Noteholders in the Receivables or materially adversely affect the collectability of the Trust Assets.
(l)[Reserved].
(m)ERISA Reporting and Covenant.
(i)Promptly upon becoming aware of the occurrence of any ERISA Event which together with all other ERISA Events occurring within the prior twelve (12) months could reasonably be expected to involve a payment of money by or an aggregate liability of any member of the ERISA Group or any combination of such entities in excess of $10,000,000, the Servicer shall give the Administrative Agent and each Managing Agent a written notice specifying the nature thereof, what action the Servicer or any member of the ERISA Group has taken and, when known, any action taken or threatened by the Internal Revenue Service, the Department of Labor or the PBGC with respect thereto.
(ii)Promptly upon receipt thereof, the Servicer shall furnish to the Administrative Agent and each Managing Agent copies of (x) all notices received by any member of the ERISA Group of the PBGC’s intent to terminate any Plan or to have a trustee appointed to administer any Plan; (y) all notices received by any member of the ERISA Group from the sponsor of a Multiemployer Plan pursuant to Section 4202 of ERISA involving an aggregate withdrawal liability of such member of any other member or members of the ERISA Group in excess of $10,000,000; and (z) all funding waiver requests filed by any member of the ERISA Group with the Internal Revenue Service with respect to any Plan.
(iii)The Servicer shall not permit any event or condition which is described in the definition of ERISA Event to occur or exist with respect to any Plan or Multiemployer Plan if such event or condition, together with all other events or conditions described in the definition of ERISA Event occurring within the prior twelve (12) months, involves the payment of money by or an incurrence of liability of the Servicer or any member of the ERISA Group in an aggregate amount that would have a Material Adverse Effect on the Servicer or the Issuer
(n)Taxes.  The Servicer will, or will cause USCC to, file all tax returns and reports required by law to be filed by it (or the Seller) and will promptly pay all material taxes and governmental charges at any time owing by it, except any such taxes which are not yet delinquent or are being diligently contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP have been set aside on its books.
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(o)Separate Existence.  The Servicer will take all reasonable steps (including, without limitation, all steps necessary or that the Administrative Agent may from time to time reasonably request) to maintain the Seller’s, the Transferor’s and the Issuer’s identity as a separate legal entity from it and to make it manifest to third parties that each of the Transferor and the Issuer is an entity with assets and liabilities distinct from those of it and each of its other Affiliates.
(p)Further Assurances.  Subject to Section 4.7(b), the Servicer shall, or shall cause the Seller or any Originator to, furnish the Administrative Agent, any Managing Agent or the Indenture Trustee from time to time such statements and schedules further identifying and describing the Trust Assets and such other reports or other information reasonably related to this Agreement in connection with the Trust Assets as the Administrative Agent, such Managing Agent or the Indenture Trustee, acting at the written direction of the Requisite Global Majority, may reasonably request, all in reasonable detail.
(q)Independent Accountants’ Reports and Servicing Reviews.  In the event that any report, compliance statement or attestation, including the reports of the independent accountants, prepared pursuant to the Transaction Documents discloses or identifies any material weakness, deficiency or other adverse occurrence relating to the performance of any Originator’s, the Seller’s, the Servicer’s or the Transferor’s obligations pursuant to the Transaction Documents, then the Servicer shall, and shall cause the applicable Originator, the Seller or the Transferor to, as applicable, use commercially reasonable efforts as promptly as reasonably possible to remedy, cure or correct the issues giving rise to such disclosure.
(r)No Liens.  Except for the conveyances under the Transaction Documents, the Servicer, the Seller and the Originators will not sell, pledge, assign or transfer to any other Person, or grant, create, incur, assume or suffer to exist any Lien on, any Receivable, the Related Rights or Collections on such Receivables, whether now existing or hereafter created, or any interest therein, and the Servicer shall (and shall cause the Seller and the Originators to) defend the right, title and interest of the Issuer and the Indenture Trustee in, to and under the Receivables, the Related Rights and the Collections on such Receivables, whether now existing or hereafter created, against all claims of third parties claiming through or under USCC, the Seller, any Originator or their respective assigns.
(s)Name Change, Offices and Records.  USCC will not, and shall cause the Seller and the Originators not to, make any change to its name (within the meaning of Section 9-507 of any applicable enactment of the UCC), type or jurisdiction of organization or location of its books and records unless, at least thirty (30) days prior to the effective date of any such name change, change in type or jurisdiction of organization, or change in location of its books and records USCC notifies the Issuer, the Indenture Trustee and the Administrative Agent thereof and (except with respect to a change of location of books and records) delivers to the Indenture Trustee (i) such financing statements (Forms UCC-1 and UCC-3) which the Indenture Trustee (or its assigns), acting at the written direction of the Requisite Global Majority, or the Administrative Agent may reasonably request to reflect such name change, or change in type or jurisdiction of organization, (ii) if the Administrative Agent shall so request, an opinion of counsel, in form and substance reasonably satisfactory to such Person, as to the perfection and priority of the Issuer’s ownership interest in, and the Indenture Trustee’s security interest in the Receivables, Related Rights and Collections on such Receivables and (iii) such other documents, agreements and instruments that the Indenture Trustee, acting at the written direction of the Requisite Global Majority, or the Administrative Agent may reasonably request in connection therewith.
(t)Third Party Reviews; Reports.  In addition to the reports prepared pursuant to Section 3.04 and Section 3.05 of the Transfer and Servicing Agreement, (i) If a Default, Event of Default, Amortization Event, Potential Amortization Event, Servicer Default or Potential Servicer Default is not continuing, then once per year (A) on or prior to September 30 (beginning September 30, 2021), or (B) on or prior to such other date as the Administrative Agent, each Managing Agent and the Transferor may mutually agree, or (ii) if a Default, Event of Default, Amortization Event, Potential Amortization Event, Servicer Default or Potential Servicer Default has occurred and is continuing, then at such frequency and on such dates as the Administrative Agent may request, but not more frequently than once per calendar quarter, the Administrative Agent and each Managing Agent shall receive a written report delivered by an independent accounting firm reasonably acceptable to the Administrative Agent and each Managing Agent addressing such procedures and scope identified on Annex I hereto, or otherwise addressing such additional procedures and scope reasonably requested by the Administrative Agent and the Managing Agents from time to time and consented to by the Transferor (which consent shall not be unreasonably withheld).  The procedures performed and written report prepared with respect thereto shall be at the expense of the Servicer and shall be in form and substance satisfactory to the Administrative Agent and each Managing Agent.
(u)Modifications to Credit and Collection Policies.  The Servicer will not, and shall cause the Seller and each Originator not to, without the prior written consent of the Administrative Agent and each of the Managing Agents, make any change in, or amendment to, the Credit and Collection Policies or the Contracts (or any form of Contract) if such proposed change or amendment would be reasonably likely to materially adversely affect the collectability of the Receivables (or any Related Rights), materially decrease the credit quality of any newly originated Receivables or have a Material Adverse Effect on the Series 2017-VFN Noteholders.  At least ten (10) days prior notice of the effectiveness of any change in, or amendment to, the Contracts or the Credit and Collection Policies that would be reasonably likely to materially adversely affect the collectability of the Receivables (or any Related Rights) or materially decrease the credit quality of any newly created Receivables or have a Material Adverse Effect on the Series 2017-VFN Noteholders, the Servicer shall furnish to the Administrative Agent and the Managing Agents a notice indicating such proposed change or amendment, together with a request for the consent of the Administrative Agent and the Managing Agents thereto.  Not later than one week following any other change in, or amendment to, the Contracts or the Credit and Collection Policies, the Servicer shall furnish to the Administrative Agent and the Managing Agents a copy of the Contracts or the Credit and Collection Policies, as applicable, then in effect, together with a notice indicating such change or amendment.
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(v)Extension or Amendment of Receivables.  The Servicer will not, and will cause the Seller and the Originators not to, extend, rescind, cancel, amend or otherwise modify the terms of any Receivable (or any Related Rights), including rescheduling, revising or deferring payments due on any Receivable, except in each case as would not individually or in the aggregate materially adversely affect the Administrative Agent, the Managing Agents, the Owners or the Noteholders, or in accordance with the Credit and Collection Policies and the Transfer and Servicing Agreement, or as ordered by a court of competent jurisdiction or other Governmental Authority, or with the prior consent of the Administrative Agent and each Managing Agent, or pursuant to Requirements of Law.
(w)Limitation on Transactions with the Transferor and the Issuer.  The Servicer will not, and shall cause the Seller and the Originators not to, enter into, or be a party to any transaction with the Transferor or the Issuer, except for (i) the transactions contemplated by this Agreement and the other Transaction Documents; and (ii) to the extent not otherwise prohibited under the Transaction Documents, other transactions in the nature of employment contracts and directors’ fees, upon fair and reasonable terms materially no less favorable to the Transferor or the Issuer than would be obtained in a comparable arm’s length transaction with a Person not an Affiliate.
(x)Accounting.  The Servicer will not, and will not permit any Affiliate to, account for or treat (whether in financial statements or otherwise) the transactions contemplated by the Receivables Purchase Agreement and the Transfer and Servicing Agreement in any manner other than the sales and contributions of the Purchased Assets by the Seller to the Transferor, and the transfers of the Transferred Assets by the Transferor to the Issuer, or in any other respect account for or treat the transactions contemplated hereby in any manner other than as sales of such Purchased Assets to the Transferor and transfers of such Transferred Assets to the Issuer, except to the extent that such transactions are not recognized on account of consolidated financial reporting in accordance with GAAP.
(y)Receivables Schedules.  The Servicer shall deliver (or cause to be delivered) to the Administrative Agent the initial Receivables Schedule delivered to the Indenture Trustee on the Initial Addition Date and each updated or supplemented Receivables Schedule and Contract Additions Report delivered to the Indenture Trustee pursuant to the Transaction Documents on each Determination Date or Addition Date, as applicable (which delivery may occur in electronic format).
(z)Maintain Existence.  The Servicer will, and will cause the Seller and each Originator to, preserve and maintain its existence, rights, franchises and privileges in the jurisdiction of its incorporation, and qualify and remain qualified in good standing as a corporation in each jurisdiction where its business is conducted, and will maintain all requisite authority to conduct its business in each jurisdiction in which its business requires such authority.
(aa)Fulfillment of Obligations.  The Servicer will, and will cause the Seller and each Originator to, (i) duly observe and perform, or cause to be observed or performed, all material obligations and undertakings on its part to be observed and performed under this Agreement, the Transaction Documents and the Receivables, (ii) subject to the terms hereof and the Credit and Collection Policies, duly observe and perform all material provisions, covenants and other promises required to be observed by it under the Receivables, (iii) do nothing to materially impair the rights, title and interest of the Owners in and to the Collateral and (iv) pay when due (or contest in good faith) any taxes, including without limitation any sales tax, excise tax or other similar tax or charge, payable by the Servicer, the Seller or any Originator in connection with the Receivables and their creation and satisfaction.
(bb)Total Systems Failure.  The Servicer shall promptly notify the Administrative Agent and each Managing Agent of any total failure of any systems necessary for the performance of its servicing obligations under the Transaction Documents (a “total systems failure”) and shall advise the Administrative Agent and each Managing Agent of the estimated time required to remedy such total systems failure and of the estimated date on which a Monthly Report can be delivered.  Until a total systems failure is remedied, the Servicer shall (i) furnish to the Administrative Agent and each Managing Agent such periodic status reports and other information relating to such total systems failure as the Administrative Agent and any Managing Agent may reasonably request and (ii) promptly notify the Administrative Agent and each Managing Agent if the Servicer believes that such total systems failure cannot be remedied by the estimated date, which notice shall include a description of the circumstances which gave rise to such delay, the action proposed to be taken in response thereto, and a revised estimate of the date on which the Monthly Report can be delivered.  The Servicer shall promptly notify the Administrative Agent and each Managing Agent when a total systems failure has been remedied.
(cc)Insurance.  The Servicer shall, or shall cause USCC to, for itself and the Seller, keep insured by financially sound and reputable insurers all property of a character usually insured by companies engaged in the same or similar business similarly situated against loss or damage of the kinds and in the amounts customarily insured against by such companies, and carry such other insurance as is usually carried by such companies.
(dd)Modification of Systems.  The Servicer agrees, promptly after the replacement or any material modification of any computer system, automation system or other operating system (in respect of hardware or software) used to perform the Servicer’s material services as servicer or to make any calculations or reports hereunder or under the Transaction Documents, to give notice of any such replacement or modification to the Administrative Agent and each Managing Agent.
(ee)Monthly Report.  In addition to the information required to be included in each Monthly Report pursuant to Section 5.3 of the Indenture Supplement, the Servicer shall include in each Monthly Report relating to the Series 2017-VFN Notes, such other information or calculations relating to the Receivables owned by the Issuer on an aggregate basis as the Administrative Agent may reasonably request.
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(ff)Keeping of Records and Books of Account.  The Servicer will, or will cause each of the Seller and the Originators to, as applicable, maintain and implement administrative and operating procedures (including, without limitation, an ability to recreate records evidencing Transferred Assets in the event of the destruction of the originals thereof), and keep safely for the benefit of the Owners all records, and keep and maintain, or obtain, as and when required, all documents, books, records and other information reasonably necessary or advisable for the identification and collection of all Transferred Assets (including, without limitation, records adequate to permit the identification of all Collections in respect of and adjustments to each existing Transferred Asset).
(gg)Customer List.  The Servicer will, or will cause each of the Seller and the Originators to, as applicable, at all times maintain a current list (which may be stored on magnetic tapes or disks) of all Obligors under Contracts related to Transferred Assets, including the name, address, telephone number and contract identification number of each such Obligor.
(hh)Compliance Certificate.  Together with the annual report required under Section 4.9(b)(i), the Servicer shall furnish to the Administrative Agent and each Managing Agent a compliance certificate in substantially the form of Exhibit C hereto signed by the chief accounting officer or treasurer of the Servicer stating that no Default, Event of Default, Amortization Event, Potential Amortization Event, Servicer Default or Potential Servicer Default exists, or if any such event exists, stating the nature and status thereof.
(ii)Servicer Statements and Reports.  The Servicer shall deliver to the Administrative Agent and each Managing Agent each certificate and other report of the Servicer prepared pursuant to Section 3.04 and Section 3.05 of the Transfer and Servicing Agreement.  In the event that the Servicer or one of its Affiliates is no longer acting as Servicer, the Servicer agrees to cause any Successor Servicer to deliver or make available to the Administrative Agent and each Managing Agent each certificate and report to be provided thereafter pursuant to Section 3.04 and Section 3.05 of the Transfer and Servicing Agreement or otherwise under this Agreement.
(jj)Compliance with Requirements of Law.  The Servicer shall, and shall cause the Seller and each Originator to, duly satisfy all obligations on its part to be fulfilled under or in connection with each Receivable and the related Contract, if any, and will maintain in effect all qualifications and licenses required under Requirements of Law in order to service properly each Receivable and the related Contract, if any, and will comply in all material respects with all other Requirements of Law in connection with servicing the Receivables, except to the extent the failure to so comply would not have a Material Adverse Effect.
(kk)Access to Certain Documentation and Information Regarding the Receivables.  In addition to any rights the Series 2017-VFN Noteholders may have pursuant to Section 6.08 of the Transfer and Servicing Agreement, the Servicer shall provide to the Administrative Agent access to the documentation regarding the Receivables in such cases where the Administrative Agent is required in connection with the enforcement of the rights of Owners or by applicable statutes or regulations to review such documentation, such access being afforded without charge but only (a) upon reasonable request, (b) during normal business hours, (c) subject to the Servicer’s normal security and confidentiality procedures, (d) at reasonably accessible offices in the continental United States designated by the Servicer, and (e) once per calendar year.  Nothing in this Section 4.7(kk) shall derogate from the obligation of the Transferor, the Administrative Agent and the Servicer to observe any applicable law prohibiting disclosure of information regarding the Obligors and the failure of the Servicer to provide access as provided in this Section 4.7(kk) as a result of such obligation shall not constitute a breach of this Section 4.7(kk).
(ll)Examination of Records.  The Servicer shall cause the Originators and the Seller to indicate in their computer files or other records that the Transferred Assets have been conveyed from the applicable Originator to the Seller pursuant to the Receivables Sale Agreement, and from the Seller to the Transferor pursuant to the Receivables Purchase Agreement.  The Servicer shall cause the Originators and the Seller to, prior to the sale or transfer to a third party of any receivable held in its custody, examine its computer records and other records to determine that such receivable is not, and does not include, a Transferred Asset sold to the Transferor and transferred to the Issuer (for the benefit of the Owners).
SECTION 4.8[Reserved].
SECTION 4.9Additional Covenants of the Transferor and the Servicer.  Each of the Transferor and the Servicer severally covenants and agrees, in each case as to itself individually or in such respective capacities, each with respect to itself only, unless otherwise consented to or waived in accordance with the provisions of Section 7.1, that:
(a)Ratings of Commercial Paper Notes.  To the extent that any rating provided with respect to a Conduit Purchaser’s Commercial Paper Notes by any rating agency is conditional upon the furnishing of documents or the taking of any other action by the Transferor or the Servicer, then such party, as applicable, shall take all reasonable actions to furnish such documents and take any such other action.
(b)Information from the Seller, the Originators, the Transferor and the Servicer.  So long as any Series 2017-VFN Notes remain outstanding, each of the Transferor and the Servicer will, and will cause the Performance Guarantor to, furnish to the Administrative Agent and each Managing Agent:
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(i)a copy of each certificate, opinion, report, statement, notice or other communication (other than investment instructions) furnished by or on behalf of such party to the Indenture Trustee or any Rating Agency under the Indenture or the Series 2017-VFN Supplement or any other Transaction Document, concurrently therewith, and promptly after receipt thereof, a copy of each notice, demand or other communication received by or on behalf of such party under the Indenture or the Series 2017-VFN Supplement; and
(ii)such other information (including non-financial information), documents, records or reports reasonably related to the Transaction Documents or the transactions contemplated thereby and respecting the Issuer, the Receivables, the Transferor, the Seller, the Originators, the Performance Guarantor and the Servicer, as the Administrative Agent, any Conduit Purchaser or any Managing Agent may from time to time reasonably request.
(iii)promptly following the sending or filing thereof, copies of all registration statements which the Transferor, USCC, the Seller, the Performance Guarantor or the Servicer files with the Commission or any national securities exchange in connection with the Issuer, the Indenture, the Series 2017-VFN Supplement or any Series 2017-VFN Notes.
(c)Amendments.  None of any Originator, the Seller, the Transferor or the Servicer will make, or permit any Person to make, any amendment, modification or change to, or provide any waiver under the Transaction Documents except in accordance with Section 7.1(c).
(d)Prohibition on Indebtedness.  Except as permitted by the Transaction Documents, the Transferor agrees that during the term of this Agreement, it shall not incur any indebtedness, or assume or guarantee indebtedness of any other entity, without the consent of Managing Agents representing Ownership Groups holding 100% of the aggregate outstanding Note Principal Balance on such date.
(e)Revision of Eligibility Criteria.  The Transferor and the Servicer, for itself and on behalf of the Seller and the Originators, each agree that it will not modify, amend or delete any portion of the definition of Eligible Institution, Eligible Investments, Eligible Receivable or Eligible Servicer, except in accordance with the provisions of Section 7.1(c).
(f)Mutual Obligations.  On and after the 2020 Amendment Closing Date, each party hereto will do, execute and perform all such other acts, deeds and documents as the other party may from time to time reasonably require in order to carry out the intent of this Agreement.
(g)Notice of Liens; Documentation of Transfer.  The Transferor and the Servicer each agree that it will notify the Administrative Agent and each Managing Agent within ten (10) Business Days of any event that would cause any Originator, the Seller, the Transferor, the Servicer or the Indenture Trustee to be required to file financing statements, continuation statements or amendments thereto under the UCC pursuant to the Receivables Sale Agreement, the Receivables Purchase Agreement or the Transfer and Servicing Agreement (including, but not limited to, Section 9.02 of the Transfer and Servicing Agreement) or otherwise as would be necessary to perfect and maintain the security interest (and its priority) in and to the Eligible Receivables contemplated by the Transaction Documents.
(h)Delegation of Duties.  Except as permitted under the Transaction Documents, the Servicer agrees that it will not delegate any of its duties under the Transfer and Servicing Agreement pursuant to Section 6.09 thereof without the prior written consent of the Administrative Agent and each Managing Agent.
(i)Anti-Corruption Laws and Sanctions.
(i)The Servicer will maintain in effect and enforce policies and procedures designed to ensure compliance by the Servicer and the Transferor, and each of their respective Subsidiaries and their respective directors, officers, employees and agents, with Anti-Corruption Laws and applicable Sanctions.
(ii)The Issuer will not request any Note Principal Balance Increase, and neither of the Servicer nor the Transferor shall procure for its Subsidiaries, and its or their respective directors, officers, employees and agents shall not use, the proceeds of any Note Principal Balance Increase (A) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (B) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, or (C) in any other manner that would result in liability to any party hereto under any applicable Sanctions or the violation of any Sanctions applicable to any party hereto.
(j)Third Party Payments.  So long as any Series 2017-VFN Notes remain outstanding, neither the Transferor nor the Servicer will enter into any agreement with a third party that provides for the payment of all or a portion of the remaining Receivables Balance relating to any Contract held by or to be transferred to the Issuer, without the consent of the Series 2017-VFN Controlling Holders.
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SECTION 4.10Merger or Consolidation of, or Assumption, of the Obligations of the Transferor or the Seller.  
(a)The Transferor shall not consolidate or merge with any other Person.
(b)The Performance Guarantor shall not permit the sale, consolidation or merger to an entity or entities unaffiliated with the Performance Guarantor, of one or more Originators which are Affiliates of the Performance Guarantor, and that are responsible for the origination and sale to the Seller (pursuant to the Receivables Sale Agreement) of a material portion of the Receivables intended to be sold and transferred to the Issuer pursuant to the Transaction Documents or if any such action would be reasonably likely to have a Material Adverse Effect.
(c)Any Person (i) into which the Transferor or the Seller may be merged or consolidated, (ii) resulting from any merger or consolidation to which the Transferor or the Seller, as applicable, shall be a party, (iii) that acquires by conveyance, transfer or lease substantially all of the assets of the Transferor or the Seller, as applicable, or (iv) succeeding to the business of the Performance Guarantor, USCC, the Transferor or the Seller, as applicable, which Person shall execute an agreement of assumption to perform every obligation of the Transferor or the Seller, as applicable, under this Agreement, shall be the successor to the Transferor or the Seller, as applicable, under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties to this Agreement.  The Transferor or the Seller, as applicable, shall provide notice of any merger, consolidation, succession, conveyance or transfer pursuant to this Section 4.10(b) to each Managing Agent.
(d)Notwithstanding the foregoing, none of the Transferor or the Seller shall consolidate with or merge into any other Person or convey or transfer its properties and assets substantially as an entirety to any Person, unless:
(i)the Person formed by such consolidation or into which the Transferor or the Seller, as applicable, is merged or the Person which acquires by conveyance or transfer the properties and assets of the Transferor or the Seller, as applicable, substantially as an entirety shall be a Person organized and existing under the laws of the United States of America or any State or the District of Columbia and, if the Transferor or the Seller, as applicable, is not the surviving Person, such Person shall assume, without the execution or filing of any paper or any further act on the part of any of the parties hereto, the performance of every covenant and obligation of the Transferor or the Seller, as applicable, hereunder;
(ii)immediately after giving effect to such transaction, no representation or warranty made pursuant to Article III hereof shall have been breached (for purposes hereof, such representations and warranties shall speak as of the date of the consummation of such transaction) and no Default, Event of Default, Amortization Event, Potential Amortization Event, Servicer Default or Potential Servicer Default shall have occurred; and
(iii)the Transferor or the Seller, as applicable, has delivered to the Administrative Agent and each Managing Agent an Officer’s Certificate stating that such consolidation, merger, conveyance or transfer complies with this Section 4.10 and that all conditions precedent herein provided for relating to such transaction have been complied with, and an Opinion of Counsel to the effect that the agreement referred to in Section 4.10(b)(iv) above is the legal, valid and binding obligation of such successor Person enforceable against such successor Person in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally from time to time in effect and except as such enforceability may be limited by general principles of equity (whether considered in a suit at law or in equity).
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ARTICLE V
THE AGENTS
SECTION 5.1Appointment.
(a)Each Owner hereby irrevocably designates and appoints the Administrative Agent as the agent of such Owner under this Agreement, and each such Owner irrevocably authorizes the Administrative Agent, as the agent for such Owner, to take such action on its behalf under the provisions of the Transaction Documents and to exercise such powers and perform such duties thereunder as are expressly delegated to the Administrative Agent by the terms of the Transaction Documents, together with such other powers as are reasonably incidental thereto.  Each Owner in each Ownership Group hereby irrevocably designates and appoints the Managing Agent for such Ownership Group as the agent of such Owner under this Agreement, and each such Owner irrevocably authorizes such Managing Agent, as the agent for such Owner, to take such action on its behalf under the provisions of the Transaction Documents and to exercise such powers and perform such duties thereunder as are expressly delegated to such Managing Agent by the terms of the Transaction Documents, together with such other powers as are reasonably incidental thereto.  In the event of a conflict between a determination or calculation made by the Administrative Agent and a determination or calculation made by the Owners, the determination or calculation of the Owners shall control absent manifest error.  Notwithstanding any provision to the contrary elsewhere in this Agreement, neither the Administrative Agent nor any Managing Agent (the Administrative Agent and each Managing Agent being referred to in this Article as an “Agent”) shall have any duties or responsibilities, except those expressly set forth herein, or any fiduciary relationship with any Owner, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or otherwise exist against any Agent.
(b)Each Owner hereby accepts the appointment of the related Managing Agent specified on Schedule I hereto as its Managing Agent hereunder, and authorizes such Managing Agent to take such action on its behalf under the provisions of this Agreement and to exercise such powers and perform such duties as are expressly delegated to such Managing Agent by the terms of this Agreement, if any, together with such other powers as are reasonably incidental thereto.
(c)Except for actions which any Agent is expressly required to take pursuant to this Agreement or any Conduit Support Document, no Agent shall be required to take any action which exposes the Administrative Agent or such Agent to personal liability or which is contrary to applicable law unless such Agent shall receive further assurances to its satisfaction from the Owners of the indemnification obligations under Section 5.7 hereof against any and all liability and expense which may be incurred in taking or continuing to take such action.  The Administrative Agent agrees to give to each Managing Agent and each Owner prompt notice of each notice and determination given to it by the Transferor, the Servicer or the Performance Guarantor, pursuant to the terms of this Agreement.  Each Managing Agent agrees to give the Administrative Agent and such Managing Agent’s respective Conduit Purchaser, Committed Purchaser and Conduit Support Provider(s) prompt notice of each notice and determination given to it by the Transferor, the Servicer or the Performance Guarantor, pursuant to the terms of this Agreement.  Subject to Section 5.9 hereof, the appointment and authority of the Administrative Agent and each Managing Agent hereunder shall terminate at the later to occur of (i) the payment to (A) each Owner and each Managing Agent of all amounts owing to such Owner and Managing Agent hereunder and (B) the Administrative Agent of all amounts due hereunder and (ii) the termination of this Agreement.
SECTION 5.2Delegation of Duties.  Each Agent may execute any of its duties under any of the Transaction Documents by or through agents or attorneys in fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties.  No Agent shall be responsible for the negligence or misconduct of any agents or attorneys in fact selected by it with reasonable care.
SECTION 5.3Exculpatory Provisions.
(a)Neither any Agent nor any of its officers, directors, employees, agents, attorneys in fact or Affiliates shall be (a) liable to any of the Owners for any action lawfully taken or omitted to be taken by it or such Person under or in connection with any of the Transaction Documents (except for its or such Person’s own gross negligence or willful misconduct) or (b) responsible in any manner to any of the Owners for any recitals, statements, representations or warranties made by the Servicer, the Issuer, the Performance Guarantor or the Indenture Trustee or any officer thereof contained in any of the Transaction Documents or in any certificate, report, statement or other document referred to or provided for in, or received by an Agent under or in connection with, any of the Transaction Documents or for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any of the Transaction Documents or for any failure of the Servicer, the Issuer, the Performance Guarantor or the Indenture Trustee to perform its obligations thereunder.  No Agent shall be under any obligation to any Owner to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, any of the Transaction Documents, or to inspect the properties, books or records of the Servicer, the Issuer, the Performance Guarantor or the Indenture Trustee.
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(b)Unless otherwise advised in writing by an Agent or by any Owner on whose behalf such Agent is purportedly acting, each party to this Agreement may assume that (i) such Agent is acting for the benefit of the Conduit Purchaser, Committed Purchaser and/or the Conduit Support Provider(s) included in the Owner on behalf of which it is acting, as well as for the benefit of each assignee or other transferee from such Conduit Purchaser, Committed Purchaser or Conduit Support Provider(s), and (ii) such action taken by such Agent has been duly authorized and approved by all necessary action on the part of the Owner on whose behalf it is purportedly acting.  Each Owner shall have the right to designate a new Agent (which may be itself) to act on its behalf and on behalf of its assignees and transferees for purposes of this Agreement by giving to the Administrative Agent written notice thereof signed by such Owner(s) and the newly designated Agent; provided, however, if such new Agent is not an Affiliate of an Agent that is party hereto, any such designation of a new Agent shall require the consent of the Transferor, which consent shall not be unreasonably withheld or delayed.  Such notice shall be effective when receipt thereof is acknowledged by the Administrative Agent, which acknowledgement the Administrative Agent shall not unreasonably delay giving, and thereafter the party named as such therein shall be the Agent for such Owner under this Agreement.  Each Agent and its related Owner shall agree among themselves as to the circumstances and procedures for removal and resignation of such Agent.
SECTION 5.4Reliance by Agents.  Each Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice, consent, certificate, affidavit, letter, facsimile, electronic mail, written statement, order or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons and upon advice and statements of legal counsel (including counsel to the Agent), independent accountants and other experts selected by such Agent.  Each Agent shall be fully justified in failing or refusing to take any action under any of the Transaction Documents unless it shall first receive such advice or concurrence of (x) the Series 2017-VFN Controlling Holders, in the case of the Administrative Agent, or (y) the Committed Purchasers in its Ownership Group, in the case of a Managing Agent, as it deems appropriate or it shall first be indemnified to its satisfaction by (i) in the case of the Administrative Agent, the Committed Purchasers or (ii) in the case of a Managing Agent, Committed Purchasers in its Ownership Group having Commitments aggregating greater than 50% of the aggregate Commitments of all Committed Purchasers in such Ownership Group, against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action.  The Administrative Agent shall in all cases be fully protected in acting, or in refraining from acting, under any of the Transaction Documents in accordance with a request of the Series 2017-VFN Controlling Holders, and such request and any action taken or failure to act pursuant thereto shall be binding upon all present and future Ownership Group.  Each Managing Agent shall determine with its related Ownership Group the manner in which such Owner (and the Conduit Purchaser, Committed Purchaser and/or Conduit Support Provider(s) included therein) shall request or direct such Managing Agent to take action, or refrain from taking action, under this Agreement and the other Transaction Documents on behalf of such Owner.  Such Managing Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement in accordance with such determination, and such request and any action taken or failure to act pursuant thereto shall be binding upon such Managing Agent’s related Owner.
SECTION 5.5Notices.  No Agent shall be deemed to have knowledge or notice of the occurrence of any breach of this Agreement or the occurrence of any Default, Event of Default, Amortization Event, Potential Amortization Event, Servicer Default or Potential Servicer Default unless such Agent has received notice from the Issuer, the Servicer, USCC, the Indenture Trustee or any Owner, referring to this Agreement and describing such event.  In the event that the Administrative Agent receives such a notice, it shall promptly give notice thereof to each Managing Agent, and in the event any Managing Agent receives such a notice, it shall promptly give notice thereof to the Owners in its Ownership Group.  The Administrative Agent shall take such action with respect to such event as shall be reasonably directed by the Series 2017-VFN Controlling Holders, and each Managing Agent shall take such action with respect to such event as shall be reasonably directed by Owners in its Ownership Group in the manner determined among such Managing Agent and such Owners for taking any such action; provided, that unless and until such Managing Agent shall have received such directions, such Managing Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such event as it shall deem advisable in the best interests of the Owners or of the Owners in its Ownership Group, as applicable.
SECTION 5.6Non Reliance on Agents and Other Owners.  Each Owner expressly acknowledges that no Agent nor any of its officers, directors, employees, agents, attorneys in fact or Affiliates has made any representations or warranties to it and that no act by any Agent hereafter taken, including any review of the affairs of the Servicer, the Issuer, the Performance Guarantor or the Indenture Trustee shall be deemed to constitute any representation or warranty by any Agent to any Owner.  Each Owner represents to each Agent that it has, independently and without reliance upon any Agent or any other Owner, and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, operations, property, financial and other condition and creditworthiness of the Servicer, the Issuer, the Performance Guarantor, the Receivables and the Indenture Trustee and made its own decision to purchase its interest in the Series 2017-VFN Notes hereunder and enter into this Agreement.  Each Owner also represents that it will, independently and without reliance upon any Agent or any other Owner, and based on such documents and information as it shall deem appropriate at the time, continue to make its own analysis, appraisals and decisions in taking or not taking action under any of the Transaction Documents, and to make such investigation as it deems necessary to inform itself as to the business, operations, property, financial and other condition and creditworthiness of the Originators, the Seller, the Transferor, the Servicer, the Issuer, the Performance Guarantor, the Receivables and the Indenture Trustee.  Except, in the case of an Agent, for notices, reports and other documents received by such Agent under Article V hereof, no Agent shall have any duty or responsibility to provide any Owner with any credit or other information concerning the business, operations, property, condition (financial or otherwise), prospects or creditworthiness of the Originators, the Seller, the Transferor, the Servicer, the Issuer, the Performance Guarantor, the Receivables or the Indenture Trustee which may come into the possession of such Agent or any of its officers, directors, employees, agents, attorneys in fact or Affiliates.
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SECTION 5.7Indemnification.  (i) The Committed Purchasers agree to indemnify the Administrative Agent in its capacity as such (without limiting the obligation, if any, of the Issuer and the Servicer to reimburse the Administrative Agent for any such amounts), ratably according to their respective Commitments (or, if the Commitments have terminated, Percentage Interests), and (ii) the Committed Purchasers in each Ownership Group agree to indemnify the Managing Agent for such Ownership Group in its capacity as such (without limiting the obligation, if any, of the Issuer and the Servicer to reimburse such Managing Agent for any such amounts), ratably according to their respective Commitments (or, if the Commitments have terminated, Percentage Interests), in each case from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever which may at any time (including at any time following the payment of the obligations under this Agreement, including the Note Principal Balance) be imposed on, incurred by or asserted against such Agent in any way relating to or arising out of this Agreement, or any documents contemplated by or referred to herein or the transactions contemplated hereby or any action taken or omitted by the Agent under or in connection with any of the foregoing; provided, that (i) no Owner shall be liable for the payment of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of an Agent resulting from its own gross negligence or willful misconduct and (ii) no Ownership Group shall be liable for any amount in respect of any compromise or settlement or any of the foregoing unless such compromise or settlement is approved by the Series 2017-VFN Controlling Holders.  Without limitation of the generality of the foregoing, each Owner, other than a Conduit Purchaser, agrees to reimburse the Administrative Agent, promptly upon demand, for any reasonable out-of-pocket expenses (including reasonable counsel fees) incurred by the Administrative Agent in connection with the administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement or any other Transaction Document; provided, that none of the Owners shall be responsible for the costs and expenses of the Administrative Agent in defending itself against any claim alleging the gross negligence or willful misconduct of the Administrative Agent to the extent such gross negligence or willful misconduct is determined by a court of competent jurisdiction in a final and non-appealable decision.  The agreements in this Section shall survive the payment of the obligations under this Agreement, including the Note Principal Balance.
SECTION 5.8Agents in their Individual Capacity.  Each Agent and its Affiliates may make loans to, accept deposits from and generally engage in any kind of business with USCC, the Originators, the Seller, the Issuer, the Performance Guarantor or the Servicer as though such Agent were not an agent hereunder.  In addition, the Owners acknowledge that one or more Persons which are Agents may act (i) as administrator, sponsor or agent for one or more Conduit Purchasers and in such capacity act and may continue to act on behalf of each such Conduit Purchaser in connection with its business, and (ii) as the agent for certain financial institutions under the liquidity and credit enhancement agreements relating to this Agreement to which any one or more Conduit Purchasers is party and in various other capacities relating to the business of any such Conduit Purchaser under various agreements.  Any such Person, in its capacity as Agent, shall not, by virtue of its acting in any such other capacities, be deemed to have duties or responsibilities hereunder or be held to a standard of care in connection with the performance of its duties as an Agent other than as expressly provided in this Agreement.  Any Person which is an Agent may act as an Agent without regard to and without additional duties or liabilities arising from its role as such administrator or agent or arising from its acting in any such other capacity.
SECTION 5.9Successor Agents.
(a)The Administrative Agent may resign as Administrative Agent upon sixty (60) days’ notice to the Owners, each Managing Agent, the Indenture Trustee, the Issuer, the Performance Guarantor and the Servicer with such resignation becoming effective upon a successor administrative agent succeeding to the rights, powers and duties of the Administrative Agent pursuant to this Section 5.9.  If the Administrative Agent shall resign as Administrative Agent under this Agreement, then the Series 2017-VFN Controlling Holders shall appoint from among the Committed Purchasers a successor administrative agent.  Any Managing Agent may resign as Managing Agent upon ten (10) days’ notice to the Owners in its Ownership Group, the Administrative Agent, the Indenture Trustee, the Issuer and the Servicer with such resignation becoming effective upon a successor agent succeeding to the rights, powers and duties of the Managing Agent pursuant to this Section 5.9.  If a Managing Agent shall resign as Managing Agent under this Agreement, then (i) Owners in its Ownership Group having Percentage Interests aggregating greater than 50% of the aggregate Percentage Interests of all Owners in such Ownership Group, and (ii) Committed Purchasers in its Ownership Group having Commitments aggregating greater than 50% of the aggregate Commitments of all Committed Purchasers in such Ownership Group shall appoint from among the Committed Purchasers in such Ownership Group a successor agent for such Ownership Group.
(b)The Issuer may replace the Administrative Agent by giving at least one hundred twenty (120) days’ prior written notice to the Administrative Agent, the Owners, the Managing Agents, the Transferor, the Servicer, the Performance Guarantor and the Indenture Trustee.  Any such replacement Administrative Agent shall be subject to the prior written approval of 100% of the Managing Agents as of such date (other than the Person then acting as the Administrative Agent, in such capacity, but including such Person, if applicable, in its capacity as an Owner), which approval shall not be unreasonably withheld or delayed.  If 100% of the Managing Agents do not approve a replacement Administrative Agent, the Administrative Agent shall continue to serve in such capacity until it resigns in accordance with Section 5.9(a) or is replaced in accordance with this Section 5.9(b).
(c)Any successor administrative agent or agent shall succeed to the rights, powers and duties of the resigning Agent, and the term “Administrative Agent” or “Managing Agent,” as applicable, shall mean such successor administrative agent or managing agent effective upon its appointment, and the former Managing Agent’s rights, powers and duties as Managing Agent shall be terminated, without any other or further act or deed on the part of such former Managing Agent or any of the parties to this Agreement.  After the retiring Managing Agent’s resignation as Managing Agent, the provisions of this Article V shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Managing Agent under this Agreement.
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SECTION 5.10Funding Decision.  Each Owner acknowledges that it has, independently and without reliance upon the Administrative Agent, and based on such documents and information as it has deemed appropriate, made its own evaluation and decision to enter into this Agreement and to fund an interest in the Invested Amount.  Each Owner also acknowledges that it will, independently and without reliance upon the Administrative Agent or any of their respective Affiliates, and based on such documents and information as it shall deem appropriate at the time, continue to make its own decisions in taking or not taking action under this Agreement or any related agreement, instrument or other document.
ARTICLE VI
TRANSFERS OF SERIES 2017-VFN NOTES

SECTION 6.1Transfers of Series 2017-VFN Notes.
(a)Each Owner agrees that the interest in the Series 2017-VFN Notes purchased by it will be acquired for investment only and not with a view to any public distribution thereof, and that such Owner will not offer to sell or otherwise dispose of any Series 2017-VFN Note acquired by it (or any interest therein) in violation of any of the requirements of the Securities Act or any applicable state or other securities laws.  Each Owner acknowledges that it has no right to require the Issuer to register, under the Securities Act, or any other securities law, the Series 2017-VFN Notes (or any interest therein) acquired by it pursuant to this Agreement or any Transfer Supplement.  Each Owner hereby confirms and agrees that in connection with any transfer or syndication by it of an interest in the Series 2017-VFN Notes, such Owner has not engaged and will not engage in a general solicitation or general advertising including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio or television, or any seminar or meeting whose attendees have been invited by any general solicitation or general advertising.
(b)Each initial owner of a Series 2017-VFN Note or any interest therein and any Assignee thereof or Participant therein shall certify, as of the date it acquired an interest or Participation in the Series 2017-VFN Notes, to the Issuer, the Servicer, the Indenture Trustee, the Administrative Agent and the Managing Agent for its Ownership Group that it is either (i) a citizen or resident of the United States, (ii) a corporation or other entity organized in or under the laws of the United States or any political subdivision thereof or (iii) a person not described in (i) or (ii) who is entitled to receive payments under this Agreement and with respect to the Series 2017-VFN Notes without deduction or withholding of any United States federal income taxes and who will furnish to the Issuer, the Servicer, the Indenture Trustee, the Administrative Agent, the Managing Agent for its Ownership Group, and to the Owner making the Transfer the forms described in Section 2.5(c).
(c)Any sale, transfer, assignment, participation, pledge, hypothecation or other disposition (a “Transfer”) of a Series 2017-VFN Note or any interest therein may be made only in accordance with this Section 6.1 and any applicable provisions of the Indenture, and must be in an amount not less than $5,000,000 except in the event of a transfer to another Owner or Conduit Support Provider within the same Ownership Group.  No Series 2017-VFN Note or any interest therein may be transferred by Assignment or Participation to any Person (each, a “Transferee”) unless the Transferee is a Permitted Transferee.  In connection with any Transfer, each such Transferee will execute and deliver an Investment Letter as required in Section 6.1(e); provided, no Investment Letter will be required in connection with any Participation to a Permitted Transferee that is an Affiliate of the related Owner, as provided in Section 6.1(d).
Each of the Issuer and the Servicer authorizes each Owner to disclose to any Transferee and Support Party and to any prospective Transferee or Support Party which is a Permitted Transferee any and all Confidential Information in the Owner’s possession concerning this Agreement or the Transaction Documents or concerning USCC, the Originators, the Seller, the Servicer, the Transferor, the Issuer, the Receivables, the Trust Assets or such party which has been delivered to any Managing Agent or such Owner pursuant to this Agreement or the Transaction Documents (including information obtained pursuant to rights of inspection granted hereunder) or which has been delivered to such Owner by or on behalf of the Issuer or the Servicer in connection with such Owner’s credit evaluation of the Receivables, the Trust Assets, the Issuer or the Servicer prior to becoming a party to, or purchasing an interest in this Agreement or the Series 2017-VFN Notes.
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(d)Each Owner may, in accordance with applicable law, at any time grant participations in all or part of its Commitment or its interest in the Series 2017-VFN Notes, including the payments due to it under this Agreement and the Transaction Documents (each, a “Participation”), to any Person who is a Permitted Transferee (each such Person, a “Participant”); provided, however, that no Participation shall be granted to any Person unless and until the Managing Agent for such Owner’s Ownership Group shall have consented thereto (such consent not to be unreasonably withheld); provided further, that the parties hereto agree that any Owner may grant a Participation to a Permitted Transferee that is an Affiliate of such Owner in connection with such Owner’s respective obligations under this Agreement without consent of any other party and without any further documentation.  In connection with any such Participation, each Managing Agent for an Ownership Group shall maintain a register of each Participant of members of its Ownership Group and the amount of each related Participation.  Each Owner hereby acknowledges and agrees that (A) any such Participation will not alter or affect such Owner’s direct obligations hereunder, and (B) neither the Indenture Trustee, the Issuer nor the Servicer shall have any obligation to have any communication or relationship with any Participant.  Each Owner and each Participant shall comply with the provisions of Section 2.5(c) of this Agreement.  No Participant shall be entitled to transfer all or any portion of its Participation, without the prior written consent of the Managing Agent for its Ownership Group (such consent not to be unreasonably withheld).  Each Participant shall be entitled to receive additional amounts and indemnification pursuant to Sections 2.4, 2.5 and 2.6 hereof as if such Participant were an Owner and such Sections applied to its Participation; provided, in the case of Section 2.5, that such Participant has complied with the provisions of Section 2.5(c) hereof as if it were an Owner.  Each Owner shall give the Managing Agent for its Ownership Group notice of the consummation of any sale by it of a Participation.  It shall be a further condition to the grant of any Participation (except in the case of Participants that are Affiliates of the applicable Owner granting such Participation) that the Participant shall have certified, represented and warranted that (i) it is entitled to (A) receive payments with respect to its participation without deduction or withholding of any United States federal income taxes, and (B) an exemption from United States backup withholding tax, and (ii) to the extent such Participant has not otherwise directly provided such forms to the Servicer and the Indenture Trustee, (A) prior to the date on which the first interest payment is due to such Participant, such Participant will provide to the Servicer, the Administrative Agent and Indenture Trustee, the forms described in Section 2.5(c) (as applicable and as set forth therein) as though the Participant were an Owner, and (B) such Participant similarly will provide subsequent forms as described in Section 2.5(c) with respect to such Participant as though it were an Owner.
(e)Each Owner may, with the consent of the Managing Agent for its Ownership Group (such consent not to be unreasonably withheld) and in accordance with applicable law, sell, assign or grant a security interest in or pledge (each, an “Assignment”), to any Permitted Transferee (each, an “Assignee”) all or any part of its Commitment (if any) or its interest in the Series 2017-VFN Notes and its rights and obligations under this Agreement and the Transaction Documents pursuant to an agreement substantially in the form attached hereto as Exhibit A hereto (a “Transfer Supplement”), executed by such Assignee and the Owner and delivered to the Managing Agent for its Ownership Group for its acceptance and consent (such consent not to be unreasonably withheld); provided, however, that (i) except for (A) an assignment by a Conduit Purchaser of its interest in the Series 2017-VFN Notes and its rights and obligations under this Agreement and the Transaction Documents to any one or more of the Committed Purchasers or Conduit Support Providers in its Ownership Group, or to such Conduit Purchaser’s Collateral Agent or a Conduit Trustee for its commercial paper program, or (B) an assignment by a Conduit Purchaser of the type described in the second sentence of Section 7.5, no such assignment or sale shall be effective unless and until the conditions to Transfer specified in this Agreement, including in Section 6.1 hereof, shall have been satisfied, (ii) no assignment or sale which results in the addition of a new Ownership Group shall be effective without the consent of the Administrative Agent, except in the event that an Amortization Event or Event of Default has occurred and is continuing, and (iii) in no event shall the consent of a Managing Agent be required in the case of an assignment by a Conduit Purchaser of its interest in the Series 2017-VFN Notes and its rights and obligations under this Agreement and the Transaction Documents to any one or more of the Committed Purchasers or Conduit Support Providers in its Ownership Group, or to the Collateral Agent or a Conduit Trustee for the related Conduit Purchaser’s commercial paper program.  From and after the effective date determined pursuant to such Transfer Supplement, (x) the Assignee thereunder shall be a party hereto and, to the extent provided in such Transfer Supplement, have the rights and obligations of an Owner hereunder as set forth therein and (y) the transferor Owner shall, to the extent provided in such Transfer Supplement, be released from its Commitment and other obligations under this Agreement; provided, however, that after giving effect to each such Assignment, the obligations released by any such Owner shall have been assumed by an Assignee or Assignees.  No pledge and/or collateral assignment by any Conduit Purchaser to a Support Party under a Support Facility of an interest in the rights of such Conduit Purchaser in any Note Principal Balance Increase made by such Conduit Purchaser and the obligations under this Agreement shall constitute an assignment and/or assumption of such Conduit Purchaser’s obligations under this Agreement, such obligations in all cases remaining with such Conduit Purchaser.  Moreover, any such pledge and/or collateral assignment of the rights of such Conduit Purchaser shall be permitted hereunder without further action or consent and any such pledgee may foreclose on any such pledge and perfect an assignment of such interest and enforce such Conduit Purchaser’s right hereunder notwithstanding anything to the contrary in this Agreement.  Such Transfer Supplement shall be deemed to amend this Agreement to the extent, and only to the extent, necessary to reflect the addition of such Assignee and the resulting adjustment of Percentage Interests or Committed Percentages arising from the Assignment.  Upon its receipt and acceptance of a duly executed Transfer Supplement, the Managing Agent for the applicable Ownership Group (or, in the case of an Assignment by which a new Ownership Group is added to this Agreement, the Administrative Agent) shall on the effective date determined pursuant thereto give notice of such acceptance to the Issuer, the Servicer and the Indenture Trustee.
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Upon instruction to register a transfer of an Owner’s interest in the Series 2017-VFN Notes (or portion thereof) and surrender for registration of transfer of such Owner’s Series 2017-VFN Note(s) (if applicable) and delivery to the Issuer and the Registrar of an Investment Letter, executed by the registered owner (and the beneficial owner if it is a Person other than the registered owner), and receipt by the Registrar of a copy of the duly executed related Transfer Supplement and such other documents as may be required under this Agreement, such interest in the Series 2017-VFN Notes (or portion thereof) shall be transferred in the records of the Registrar and the applicable Managing Agent and, if requested by the Assignee, new Series 2017-VFN Notes shall be issued to the Assignee and, if applicable, the transferor Owner in amounts reflecting such Transfer as provided in the Indenture.  To the extent of any conflict between the provisions of this Section 6.1 and any provisions of Section 2.17 of the Indenture applicable to Transfers of Series 2017-VFN Notes (or interests therein), the provisions of Section 2.17 of the Indenture shall control.  Successive registrations of Transfers as aforesaid may be made from time to time as desired, and each such registration of a transfer to a new registered owner shall be noted on the Note Register.
(f)Each Owner may pledge its interest in the Series 2017-VFN Notes to any Federal Reserve Bank as collateral in accordance with applicable law without further action or consent.
(g)Any Owner shall have the option to change its Investing Office, provided, that such Owner shall have prior to such change in office complied with the provisions of Section 2.5 hereof and provided further, that such Owner shall not be entitled to any amounts otherwise payable under Section 2.4 or Section 2.5 hereof resulting solely from such change in office unless such change in office was mandated by applicable law or by such Owner’s compliance with the provisions of this Agreement.
(h)Each Support Party shall be entitled to receive additional payments and indemnification pursuant to Section 2.4, Section 2.5 or Section 2.6 hereof as though it were an Owner and such Section applied to its interest in or commitment to acquire an interest in the Series 2017-VFN Notes; provided, that such Support Party shall not be entitled to additional payments pursuant to (i) Section 2.4 by reason of Regulatory Changes which occurred prior to the date it became a Support Party except as otherwise provided in such Section or (ii) Section 2.5 attributable to its failure to satisfy the requirements of Section 2.5 as if it were an Owner, and provided further, that unless such Support Party is a Permitted Transferee or has been consented to by the Issuer, such Support Party shall be entitled to receive additional amounts pursuant to Section 2.4 or Section 2.5 only to the extent that its related Conduit Purchaser would have been entitled to receive such amounts in the absence of the Commitment and Support Advances from such Support Party.  The provisions of Section 2.4 shall apply to each Managing Agent and to such of its Affiliates as may from time to time administer, make referrals to or otherwise provide services or support to the Conduit Purchaser in the corresponding Ownership Group (in each case as though such Managing Agent or Affiliate were an Owner and such Section applied to its administration of or other provisions of services or support to such Conduit Purchaser in connection with the transactions contemplated by this Agreement), whether as an administrator, administrative agent, referral agent, managing agent or otherwise.
(i)Each Support Party claiming increased amounts described in Section 2.4 or Section 2.5 hereof shall furnish, through its related Conduit Purchaser, to the Issuer, the Administrative Agent, the Servicer, the Indenture Trustee and the Managing Agent for the applicable Ownership Group a certificate setting forth the basis and amount of each request by such Support Party for any such amounts referred to in Section 2.4 or Section 2.5, such certificate to be conclusive with respect to the factual information set forth therein absent manifest error.
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ARTICLE VII
MISCELLANEOUS

SECTION 7.1Amendments and Waivers.
(a)This Agreement may not be amended, supplemented or modified nor may any provision hereof be waived except in accordance with the provisions of this Section 7.1.  With the written consent of the Administrative Agent and the Managing Agents of Ownership Groups holding 100% of the Outstanding Amount of the Series 2017-VFN Notes, the parties hereto may, from time to time, enter into written amendments, supplements, waivers or modifications hereto for the purpose of adding any provisions to this Agreement or changing in any manner the rights of any party hereto or waiving, on such terms and conditions as may be specified in such instrument, any of the requirements of this Agreement; provided, however, that no such amendment, supplement, waiver or modification shall (i) reduce the amount or extend the maturity of any Series 2017-VFN Note or reduce the rate or extend the time of payment of interest thereon, or reduce or alter the timing of any other amount payable to any Owner hereunder or under the Indenture, in each case without the consent of the Owner affected thereby, or (ii)(x) increase or otherwise modify the Commitment of any Ownership Group; (y) amend, modify or waive any provision of this Section 7.1 or (z) amend, modify or waive any provision of Article V of this Agreement, without the written consent of each Managing Agent affected by such amendment, modification or waiver; and provided further, that no provision of this Agreement that pertains specifically to any Conduit Purchaser, Committed Purchaser, a Support Party or an Note Principal Balance Increase made by such Conduit Purchaser or Committed Purchaser, may be amended or waived without the written consent of such Conduit Purchaser or Committed Purchaser.  Any waiver of any provision of this Agreement shall be limited to the provisions specifically set forth therein for the period of time set forth therein and shall not be construed to be a waiver of any other provision of this Agreement.  Any amendment under this Section 7.1(a) is subject only to the requirements that the Issuer delivers to each Owner and Managing Agent and the Indenture Trustee an Officer’s Certificate of the Issuer to the effect that the proposed amendment meets the requirements set forth in this Section 7.1(a).
(b)Without derogating from the absolute nature of the assignment granted to Indenture Trustee pursuant to the Indenture or the rights of Indenture Trustee under the Indenture, the Issuer agrees that it will not, without the prior written consent of the Indenture Trustee (acting at the written direction of Noteholders representing the Series 2017-VFN Controlling Holders), amend, modify, waive, supplement, terminate or surrender, or agree to any amendment, modification, supplement, termination, waiver or surrender of, the terms of any Receivable or the Related Rights (except to the extent otherwise provided or permitted in the Transfer and Servicing Agreement or any other Transaction Document, other than those amendments affecting solely other Series) or the Transaction Documents (except to the extent otherwise provided or permitted in the Transaction Documents, other than those amendments affecting solely other Series), or waive timely performance or observance by the Servicer or the Transferor of their respective obligations under the Transfer and Servicing Agreement; provided, however, that any such amendment shall not (A) reduce the amount or extend the maturity of any Series 2017-VFN Note or reduce the rate or extend the time of payment of interest thereon, or reduce or alter the timing of any other amount payable to any Owner hereunder or under the Indenture, in each case without the consent of the Owner affected thereby, or (B) reduce the aforesaid percentage of the Series 2017-VFN Notes that is required to consent to any such amendment, without the consent of the Holders of all the Outstanding Series 2017-VFN Notes.  If any such amendment, modification, supplement or waiver shall be so consented to by Indenture Trustee (at the written direction of such Noteholders), the Issuer agrees, to execute and deliver, in its own name and at its own expense, such agreements, instruments, consents and other documents as are necessary or appropriate in the circumstances.  The Indenture Trustee shall have no obligation to consent or agree to any amendment or modification that would affect the Indenture Trustee’s duties, obligations, rights, responsibilities, indemnities or immunities under any Transaction Document.  Promptly upon execution of any amendment to this Agreement, the Issuer shall deliver a copy of such amendment to the Indenture Trustee.
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(c)Except with respect to provisions of the Transaction Documents permitting amendments without consent of Noteholders, and subject to the requirements of such provisions, none of the Transferor, the Issuer, the Servicer or the Performance Guarantor shall permit or consent to any amendment, waiver, supplement or other modification of any of the Transaction Documents without the prior written consent of the Administrative Agent and Managing Agents of Ownership Groups holding 66-2/3% of the Outstanding Amount of the Series 2017-VFN Notes; provided, however, that no such amendment, waiver, supplement, modification, consent or change to any Transaction Document may (i) reduce the amount or extend the maturity of any Series 2017-VFN Note or reduce the rate or extend the time of payment of interest thereon, or reduce or alter the timing of any other amount payable to any Owner under any Transaction Document, (ii) modify in any respect the definitions of “Advance Amount,” “Advance Rate,” “Aggregate Advance Amount,” “Amortization Period,” “Asset Base,” “Asset Base Deficiency,” “Change of Control,” “Defaulted Receivable,” “Delinquent Receivable,” “Determination Date,” “Excess Concentrations,” “Hedging Requirements,” “Note Rate,” “Required Hedge Rate,” “Requisite Global Majority,” “Series 2017-VFN Controlling Holders,” “Series 2017-VFN Majority Holders,” “Series 2017-VFN Default Ratio,” “Series 2017-VFN Delinquency Ratio,” “Series 2017-VFN Dilution Ratio,” “Series Discount Percentage,” “Supplemental Principal Payment Amount,” “Target Deposit Amount,”  or any other definition included on Annex A to the Series 2017-VFN Indenture Supplement, or any component thereof (or any definitions comprising such definitions if such change would alter the calculation of such amount) under the Series 2017-VFN Supplement, (iii) modify in any respect the Events of Default, Amortization Events or Servicer Defaults applicable to Series 2017-VFN, (iv) modify, amend or delete any portion of the definition of Eligible Institution, Eligible Investments, Eligible Receivable or Eligible Servicer, (v) release or otherwise waive the Performance Guarantor’s performance of its obligations pursuant to the Performance Guaranty, (vi) make any change that could reasonably be expected to impair the creation or perfection of the security interest in favor of the Indenture Trustee for the benefit of the Series 2017-VFN Noteholders, (vii) change or waive any of the provisions of Sections 2.06, 4.02, 4.04 or 6.07 of the Transfer and Servicing Agreement, Sections 4.1 or 4.2 of the Series2017-VFN Supplement, or Sections 2.2, 3.2, 4.6(n), 4.6(p), 4.7(o), 4.7(t), 4.7(u), 4.9(c), 4.10, or 7.1 of this Agreement, or (viii) amend, modify or waive any provision of this Section 7.1(c), without the written consent of the Administrative Agent and each Managing Agent affected thereby; provided, further, that no consent of the Administrative Agent or any Managing Agent shall be required for any amendment, modification or change to, or provide any waiver under any Fee Letter to which the Administrative Agent or such Managing Agent is not a party; provided, further, that no consent of the Administrative Agent or any Managing Agent shall be required for any amendment, modification or change to any Transaction Document:
(i)to cure any ambiguity;
(ii)to correct or supplement any provision in any Transaction Document that may be defective or inconsistent with any other provision in this Agreement or any other Transaction Document;
(iii)to add or supplement any Enhancement Agreement for the benefit of any Ownership Group (provided that if any such addition shall affect any Ownership Group differently than any other Ownership Group, then such addition shall not, as evidenced by an Opinion of Counsel, materially and adversely affect in any material respect the interests of any Ownership Group);
(iv)to add to the covenants, restrictions or obligations of the Transferor, the Servicer, the Owner Trustee or the Indenture Trustee for the benefit of the Owners;
(v)to add, change or eliminate any other provision of this Agreement or any other Transaction Document in any manner that shall not, as evidenced by an Opinion of Counsel, materially and adversely affect the interests of the Owners; or
(vi)to enter into indentures supplemental to the Indenture pursuant to Article X thereof for purposes of issuing a new Series of Notes or to amend, modify or supplement any such series supplement.
SECTION 7.2Notices.
(a)All notices and other communications provided for hereunder shall, unless otherwise stated herein, be in writing (including telecopies or electronic communication) and shall be delivered or mailed by first class United States mail, postage prepaid, hand delivery, prepaid courier service or facsimile transmission (during business hours on a Business Day), as to each party hereto, at its address identified on Schedule I, Schedule II or Schedule III hereto, as applicable, or at such other address as shall be designated by such party in a written notice to the other party hereto.  All such notices and communications shall be deemed delivered and shall be effective (i) if given by registered or certified first class United States mail, three Business Days after such communication is deposited in the mails in such fashion, (ii) if given by facsimile transmission, upon transmission to the facsimile number specified hereunder (as evidenced by electronic confirmation of such transmission), or (iii) if given by any other means (including prepaid courier), when delivered to the address of the recipient for notices hereunder.
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(b)All payments to be made to the Administrative Agent or any Managing Agent or Owner hereunder shall be made in U.S. dollars and in immediately available funds not later than 2:00 p.m., New York City time, on the date payment is due, and, unless otherwise specifically provided herein, shall be made to the applicable Managing Agent, for the account of one or more of the Owners or for its own account, as the case may be.  Unless otherwise directed by the Administrative Agent, all payments to it hereunder shall be made by federal wire to the Administrative Agent at such account as the Administrative Agent may designate in writing to the Issuer.  Unless otherwise directed by a Managing Agent or Owner, all payments to it shall be made by federal wire to the account specified on Schedule I hereto or in the Transfer Supplement by which it became a party hereto (provided, in the case of an account specified in a Transfer Supplement, that the Managing Agent, the Administrative Agent, the Issuer, the Servicer or the Indenture Trustee, as the case may be, shall have received notice thereof).
SECTION 7.3Confidentiality.
(a)Each of USCC, the Transferor, the Issuer, the Servicer and the Performance Guarantor, severally and with respect to itself only (or, with respect to USCC, for itself and on behalf of the Seller and the Originators), covenants and agrees to hold in confidence, and not disclose to any Person, the terms of this Agreement (including any fees payable in connection with this Agreement or the other Transaction Documents or the identity of any Owner under this Agreement), except as the Administrative Agent or such Managing Agent or Owner may have consented to in writing prior to any proposed disclosure and except that it may disclose such information (i) to its officers, directors, employees, agents, counsel, accountants, auditors, advisors or representatives, (ii) to the extent such information has become available to the public other than as a result of a disclosure by or through the Issuer or the Servicer or (iii) to the extent it should be (A) required by law, rule or regulation, or in connection with any legal or regulatory proceeding or (B) requested by any Governmental Authority to disclose such information; provided, that in the case of clause (iii)(A), USCC, the Issuer, the Transferor, the Servicer and the Performance Guarantor, as applicable, will use all reasonable efforts to maintain confidentiality and will (unless otherwise prohibited by law) notify the affected Administrative Agent, Managing Agent or Owners of its intention to make any such disclosure prior to making such disclosure.
(b)Each of the Administrative Agent, each Managing Agent and each Owner, severally and with respect to itself only, agrees that it will use the Confidential Information solely for the purpose of the Transaction (as defined below) and agrees to reveal the Confidential Information only to its affiliates, subsidiaries, directors, officers, employees and agents (collectively, the “Affiliates”) with a need to know the Confidential Information for the purposes of the transaction evidenced by this Agreement and the other Transaction Documents (the “Transaction”).  Each of the Administrative Agent, each Managing Agent and each Owner agrees not to disclose to any third party any such Confidential Information now or hereafter received or obtained by it without the Servicer’s and the Issuer’s prior written consent; provided, however, that it may disclose any such Confidential Information to its respective accountants, attorneys and other confidential advisors (collectively “Advisors”) who need to know such information for the purpose of assisting it in connection with the Transaction.  Each of the Administrative Agent and each Managing Agent and Owner agrees to be responsible for any breach of this Agreement by its Affiliates and Advisors and agrees that its Affiliates and Advisors will be advised by it of the confidential nature of such information and shall agree to be bound by this Agreement.
(c)None of the Administrative Agent, any Managing Agent or any Owner nor any of their Affiliates or Advisors, without the prior written consent of the Servicer and the Issuer, will disclose to any person the fact that Confidential Information has been provided to it or them, that discussions or negotiations have taken place with respect to the Transaction, or the existence, terms, conditions, or other facts of the Transaction, including the status thereof.  Notwithstanding the foregoing, the Confidential Information and the fact that discussions or negotiations are taking place with respect to a Transaction or the existence, terms, conditions, or other facts of such Transaction, including the status thereof may be disclosed on a confidential basis (i) to the Administrative Agent, the Managing Agents, the Owners, the Conduit Support Providers or any program administrator for a Conduit Purchaser by each other, (ii) by the Administrative Agent, the Managing Agents or the Owners to any prospective or actual assignee or participant of any of them, (iii) by the Administrative Agent, any Managing Agent, any Owner or any program administrator for any Conduit Purchaser to any nationally recognized statistical rating organization in compliance with Rule 17g-5 under the Exchange Act (or to any other rating agency in compliance with any similar rule or regulation in any relevant jurisdiction), commercial paper dealer or provider of a surety, guaranty or credit or liquidity enhancement to a Conduit Purchaser or any entity organized for the purpose of purchasing, or making loans secured by, financial assets for which such Managing Agent or Committed Purchaser acts as the administrative agent and (iv) pursuant to any law, rule, regulation, direction, request or order of any judicial, administrative or regulatory authority or proceedings (whether or not having the force or effect of law).
(d)Notwithstanding anything herein to the contrary, if the Administrative Agent, any Managing Agent or Owner or any of their Affiliates or Advisors are legally compelled (whether by deposition, interrogatory, request for documents, subpoena, civil investigation, demand or similar process) to disclose any of the Confidential Information (including the fact that discussions or negotiations are taking place with respect to the Transaction) it may disclose such Confidential Information; provided, that it promptly notify the Servicer and the Issuer of such requirement so that the Servicer and/or the Issuer may seek a protective order or other appropriate remedy and/or waive compliance with the provisions hereof.  Each of the Administrative Agent and each Managing Agent and Owner agrees to use commercially reasonable efforts to assist the Servicer and the Issuer in obtaining any such protective order.  Failing the entry of a protective order or the receipt of a waiver hereunder, it may disclose, without liability hereunder, that portion (and only that portion) of the Confidential Information that it has been advised by counsel that it is legally compelled to disclose; provided that it agrees to use commercially reasonable efforts to obtain assurance that confidential treatment will be accorded such Confidential Information by the person or persons to whom it was disclosed.
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(e)Notwithstanding anything herein to the contrary, it is understood that the Administrative Agent, the Managing Agents and the Owners or their affiliates may disclose the Confidential Information or portions thereof at the request of a bank examiner or other regulatory authority or in connection with an examination of any of the Administrative Agent, the Managing Agents or the Owners and their respective Affiliates by a bank examiner or other regulatory authority without any notice to the Issuer or the Servicer.
(f)Notwithstanding anything herein to the contrary, the obligations of confidentiality contained herein shall not apply to the federal tax structure or federal tax treatment of the Transaction, and each party and Owner (and any employee, representative or agent of any party or Owner) may disclose to any and all persons, without limitation of any kind, all materials of any kind (including opinions or other tax analyses) that are provided relating to such federal tax structure and federal tax treatment of the Transaction.  This authorization of tax disclosure is retroactively effective to the commencement of the first discussions among the parties regarding the transactions contemplated by this Agreement and the other Transaction Documents.  For these purposes, “tax structure” is limited to facts relevant to the U.S. federal income tax treatment of the transactions entered into under this Agreement and the other Transaction Documents.
(g)Notwithstanding anything herein to the contrary, the Transferor acknowledges and agrees that the Conduit Purchasers, the Committed Purchasers and the Managing Agents are permitted to provide to the Conduit Support Providers, respective Collateral Agent or Conduit Trustee for its commercial paper program (if applicable), permitted assignees and participants, the placement agents for their respective Commercial Paper Notes, the rating agencies with respect to such notes and other liquidity and credit providers under their respective Commercial Paper Notes or commercial paper programs, opinions, certificates, documents and other information relating to the Transferor and the Receivables delivered to the Administrative Agent, the Committed Purchasers, the Conduit Purchasers or the Managing Agents pursuant to this Agreement.
SECTION 7.4No Waiver; Cumulative Remedies.  No failure to exercise and no delay in exercising, on the part of any party hereto, any right, remedy, power or privilege under any of the Transaction Documents shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege under any of the Transaction Documents preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges provided in the Transaction Documents are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.
SECTION 7.5Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of USCC, the Issuer, the Servicer, the Performance Guarantor, the Administrative Agent, the Managing Agents, the Owners, any Transferee and their respective successors and permitted assigns, and, to the extent provided herein, to each Indemnified Party, Participant and Support Party and their respective successors and assigns; provided, that, except as provided in Section 4.10, none of USCC, the Issuer, the Transferor, the Servicer or the Performance Guarantor may assign or transfer any of their respective rights or obligations under this Agreement without the prior written consent of all of the Managing Agents; provided further, that (i) in connection with any such assignment the assignee shall expressly agree in writing to assume all the obligations of USCC, the Issuer, the Transferor, the Servicer or the Performance Guarantor, as applicable, hereunder and (ii) no such assignment made without the prior written consent of all of the Managing Agents shall relieve USCC, the Issuer, the Transferor, the Servicer or the Performance Guarantor, as applicable, of any of its obligations hereunder; and provided further that no assignment permitted hereunder shall relieve USCC, the Issuer, the Transferor, the Servicer or the Performance Guarantor, as applicable, from any obligations arising hereunder prior to such assignment (including obligations with respect to breaches of representations and warranties made herein).  Each of the Issuer and the Transferor acknowledges (i) that Thunder Bay may at any time assign, pledge or grant a security interest in this Agreement or all or any portion of the rights such Conduit Purchaser may have hereunder to a collateral trustee in order to comply with Rule 3a-7 of the Investment Company Act, and (ii) that each Conduit Purchaser may assign a security interest in or pledge this Agreement and any rights such Conduit Purchaser may have hereunder to the Collateral Agent or a Conduit Trustee for its commercial paper program to secure obligations of such Conduit Purchaser, in each case without notice to or consent of the Transferor or the Issuer; provided, that no such assignment by any Conduit Purchaser specified in clauses (i) or  (ii) above shall relieve such Conduit Purchaser of any of its obligations hereunder.
SECTION 7.6Successors to Servicer.  In the event that a transfer of servicing occurs under the Transfer and Servicing Agreement pursuant to the terms thereof, (i) from and after the effective date of such transfer, the Successor Servicer shall be the successor in all respects to the Servicer and shall be responsible for the performance of all functions to be performed by the Servicer from and after such date, except as provided in the Transfer and Servicing Agreement, and shall be subject to all the responsibilities, duties and liabilities relating thereto placed on the Servicer by the terms and provisions hereof, and all references in this Agreement to the Servicer shall be deemed to refer to the Successor Servicer, and (ii) as of the date of such transfer, the Successor Servicer shall be deemed to have made with respect to itself the representations and warranties made in Section 4.2 hereof with appropriate factual changes; provided, however, that the references to the Servicer contained in Section 2.6(b) of this Agreement shall be deemed to refer to the Servicer with respect to responsibilities, duties and liabilities arising out of an act or acts, or omission, or an event or events giving rise to such responsibilities, duties and liabilities and occurring during such time that the Servicer was Servicer under this Agreement and shall be deemed to refer to the Successor Servicer with respect to responsibilities, duties and liabilities arising out of an act or acts, or omission, or an event or events giving rise to such responsibilities, duties and liabilities and occurring during such time that the Successor Servicer acts as Servicer under the Transfer and Servicing Agreement; provided, however, to the extent that an obligation to indemnify Indemnified Parties under Section 2.6 hereof arises as a result of any act or failure to act of any Successor Servicer in the performance of servicing obligations under the Transfer and Servicing Agreement, such indemnification obligation shall be of the Successor Servicer and not its predecessor.
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SECTION 7.7Counterparts.  This Agreement may be executed in counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same instrument.  The words “execution,” signed,” “signature,” and words of like import in this Agreement or in any other certificate, agreement or document related to this Agreement or the other Transaction Documents shall include images of manually executed signatures transmitted by facsimile or other electronic format (including, without limitation, “pdf”, “tif” or “jpg”) and other electronic signatures (including, without limitation, DocuSign and AdobeSign).  The use of electronic signatures and electronic records (including, without limitation, any contract or other record created, generated, sent, communicated, received, or stored by electronic means) shall be of the same legal effect, validity and enforceability as a manually executed signature or use of a paper-based record-keeping system to the fullest extent permitted by applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act and any other applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act or the Uniform Commercial Code.
SECTION 7.8Severability.  Any provisions of this Agreement which are prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provisions in any other jurisdiction.
SECTION 7.9Integration.  This Agreement represent the agreement of the Issuer, the Transferor, the Servicer, the Administrative Agent, the Managing Agents and the Owners with respect to the subject matter hereof, and there are no promises, undertakings, representations or warranties by any party hereto relative to subject matter hereof not expressly set forth or referred to herein or therein or in the Transaction Documents.
SECTION 7.10Governing Law.  THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ITS CONFLICTS OF LAW PROVISIONS.
SECTION 7.11WAIVER OF JURY TRIAL.  EACH OF THE ISSUER, THE TRANSFEROR, THE SERVICER, THE PERFORMANCE GUARANTOR, THE ADMINISTRATIVE AGENT, THE MANAGING AGENTS AND THE OWNERS HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT, THE SERIES 2017-VFN NOTES OR ANY OTHER DOCUMENTS AND INSTRUMENTS EXECUTED IN CONNECTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN), OR ACTIONS OF THE ISSUER, THE TRANSFEROR, THE SERVICER, THE PERFORMANCE GUARANTOR, THE ADMINISTRATIVE AGENT, THE MANAGING AGENTS AND THE OWNERS.  THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO THIS AGREEMENT AND FOR OWNERS PURCHASING AN INTEREST IN THE SERIES 2017-VFN NOTES DESCRIBED HEREIN AND THE ADMINISTRATIVE AGENT AND EACH MANAGING AGENT AGREEING TO ACT AS SUCH HEREUNDER.
SECTION 7.12Jurisdiction; Consent to Service of Process.  Each of the parties hereto hereby irrevocably and unconditionally (i) submits, for itself and its property, to the nonexclusive jurisdiction of any New York state court in New York County or federal court of the United States of America for the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any judgment arising out of or relating to this Agreement; (ii) agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York state court or, to the extent permitted by law, federal court; (iii) agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law; (iv) consents that any such action or proceeding may be brought in such courts and waives any objection it may now or hereafter have to the laying of venue of any such action or proceeding in any such court and any objection it may now or hereafter have that such action or proceeding was brought in an inconvenient court, and agrees not to plead or claim the same; (v) consents to service of process in the manner provided for notices in Section 7.2 of this Agreement (provided that, nothing in this Agreement shall affect the right of any such party to serve process in any other manner permitted by law); and (vi) waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any such action or proceeding any special, exemplary, punitive or consequential damages.
SECTION 7.13Termination.  This Agreement shall remain in full force and effect until the Termination Date; provided, that the provisions of Sections 2.3, 2.4, 2.5, 2.6, 2.7, 5.1, 5.2, 5.7, 7.10, 7.12, 7.13, 7.14, and 7.16 shall survive termination of this Agreement and any amounts payable to the Administrative Agent, the Managing Agents, the Owners or any Support Party thereunder shall remain payable thereto.
SECTION 7.14Limited Recourse; No Proceedings.
(a)The obligations of the Issuer under this Agreement, the Transaction Documents or any other agreement, instrument, document or certificate executed and delivered or issued by the Issuer in connection herewith are solely the obligations of the Issuer to pay any amounts hereunder or under the Transaction Documents shall be limited solely to the application of amounts available pursuant to the Indenture.  No recourse shall be had for the payment of any fee or any other obligations or claim arising out of or based upon this Agreement, the Transaction Documents or any other agreement, instrument, document or certificate executed and delivered or issued by the Issuer in connection herewith against any employee, officer, director, incorporator, agent or trustee of the Issuer or any Affiliate of the Issuer.
51

(b)The Performance Guarantor, the Administrative Agent, each Managing Agent, and each Owner covenants and agrees that it shall not institute against, or join any other Person in instituting against the Transferor or the Issuer any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other similar proceeding under the laws of the United States or any state of the United States.
(c)Each of the parties hereto (each a “Restricted Person”) hereby agrees that it will not institute against any Conduit Purchaser or the Issuer, or join any other Person in instituting against any Conduit Purchaser or any Committed Purchaser that is a multi-seller asset-backed commercial paper conduit, any proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, present a petition for the winding up or liquidation of a Conduit Purchaser, a Committed Purchaser that is a multi-seller asset-backed commercial paper conduit, or the Issuer, or seek the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for a Conduit Purchaser or a Committed Purchaser that is a multi-seller asset-backed commercial paper conduit, or for all or substantially all of any such Person’s assets prior to the date that is one year and a day (or, if longer, the applicable preference period then in effect) after the last day on which any senior indebtedness issued by a Conduit Purchaser shall have been outstanding.  Nothing in the foregoing clause shall limit the right of any Restricted Person to file any claim in or otherwise take any action with respect to any proceeding of the type described herein that was instituted against a Conduit Purchaser or a Committed Purchaser that is a multi-seller asset-backed commercial paper conduit by any Person other than such Restricted Person.
SECTION 7.15Survival of Representations and Warranties.  All representations and warranties made hereunder and in any document, certificate or statement delivered pursuant hereto or in connection herewith shall survive the execution and delivery of this Agreement, the purchase of the Series 2017-VFN Notes hereunder, any transfer of Series 2017-VFN Notes, and the termination of this Agreement.
SECTION 7.16No Recourse.
(a)No Conduit Purchaser shall, or shall be obligated to, fund or pay any amount pursuant to any obligation under this Agreement unless such Conduit Purchaser has received funds which may be used to make such funding or other payment and which funds are not required to repay Commercial Paper Notes issued by, or finance activities of, such Conduit Purchaser when due, and after giving effect to such payment, either (i) such Conduit Purchaser could issue Commercial Paper Notes to refinance all of its outstanding Commercial Paper Notes (assuming such outstanding Commercial Paper Notes matured at such time) in accordance with the program documents governing its commercial paper program or (ii) all of the Commercial Paper Notes are paid in full.  The obligations of each Conduit Purchaser under this Agreement shall be solely the corporate obligations of such Conduit Purchaser.  Any amount which such Conduit Purchaser does not advance pursuant to the operation of this paragraph shall not constitute a claim (as defined in Section 101 of the Bankruptcy Code) against or obligation of such Conduit Purchaser for any such insufficiency.
(b)No recourse under any obligation, covenant or agreement of a Conduit Purchaser contained in this Agreement shall be had against any incorporator, stockholder, officer, director, member, manager, employee or agent of such Conduit Purchaser, any Managing Agent, any Support Party, the Administrative Agent or any of their Affiliates (solely by virtue of such capacity) by the enforcement of any assessment or by any legal or equitable proceeding, by virtue of any statute or otherwise; it being expressly agreed and understood that this Agreement is solely a corporate obligation of such Conduit Purchaser, and that no personal liability whatever shall attach to or be incurred by any incorporator, stockholder, officer, director, member, manager, employee or agent of such Conduit Purchaser, any Managing Agent, any Support Party, the Administrative Agent or any of their Affiliates (solely by virtue of such capacity) or any of them under or by reason of any of the obligations, covenants or agreements of such Conduit Purchaser contained in this Agreement, or implied therefrom, and that any and all personal liability for breaches by such Conduit Purchaser of any of such obligations, covenants or agreements, either at common law or at equity, or by statute, rule or regulation, of every such incorporator, stockholder, officer, director, member, manager, employee or agent is hereby expressly waived as a condition of and in consideration for the execution of this Agreement; provided, that the foregoing shall not relieve any such Person from any liability it might otherwise have as a result of fraudulent actions taken or fraudulent omissions made by them.
SECTION 7.17RBC Roles.  RBC acts as Administrative Agent and a Managing Agent and Support Party for certain Conduit Purchasers, and may provide other services or facilities from time to time (the “RBC Roles”).  Without limiting the generality hereof, each of the parties hereto hereby acknowledges and consents to any and all RBC Roles, waives any objections it may have to any actual or potential conflicts of interest caused by RBC acting as the Administrative Agent, a Managing Agent, or as a Support Party with respect to any Conduit Purchaser or RBC maintaining any of the RBC Roles, and agrees that in connection with any RBC Role may take, or refrain from taking, any action that it in its discretion deems appropriate.
SECTION 7.18USA PATRIOT Act.  Each Owner that is subject to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107 56 (signed into law October 26, 2001)) (the “Act”) hereby notifies the Issuer that pursuant to the requirements of the Act, it is required to obtain, verify and record information that identifies the Issuer, which information includes the name and address of the Issuer and other information that will allow such Owner to identify the Issuer in accordance with the Act.
52

SECTION 7.19Tax Characterization.  Each party to this Agreement (a) acknowledges and agrees that it is the intent of the parties to this Agreement that, for federal, state and local tax purposes only, the Series 2017-VFN Notes will be treated as evidence of indebtedness secured by the Receivables, the Collateral and proceeds thereof and the Issuer will not be characterized as an association (or publicly traded partnership) taxable as a corporation, (b) agrees to treat the Series 2017-VFN Notes as indebtedness for federal, state and local tax purposes and (c) agrees that the provisions of this Agreement and all related Transaction Documents shall be construed to further these intentions of the parties.
SECTION 7.20Accounting Treatment by Owners.  Each party to this Agreement acknowledges and agrees that it is the intent of the Owners to treat the variable funding loan evidenced by its Series 2017-VFN Note as a lending for its purposes under GAAP, including but not limited to the purposes of Financial Accounting Standard No. 115 of the Financial Accounting Standards Board.
SECTION 7.21Collections.
(a)Each of USCC (on behalf of the Seller) and the Transferor represents and warrants as to itself that each remittance of Collections by the Seller to the Transferor under the Receivables Purchase Agreement will have been (i) in payment of a debt or other obligation incurred by the Seller, in the ordinary course of business or financial affairs of the Seller and the Transferor and (ii) made in the ordinary course of business or financial affairs of the Seller and the Transferor.
(b)Each of the Transferor and the Issuer represents and warrants as to itself that each remittance of Collections by the Transferor to the Servicer, on behalf of the Issuer, under the Transfer and Servicing Agreement will have been (i) in payment of a debt or other obligation incurred by the Transferor in the ordinary course of business or financial affairs of the Transferor and the Issuer and (ii) made in the ordinary course of business or financial affairs of the Transferor and the Issuer.
(c)Each of the Issuer and the Managing Agents party hereto, on behalf of their respective Ownership Group, represent that the payment of interest on and principal of the Series 2017-VFN Notes will have been (i) in payment of a debt incurred by the Issuer in the ordinary course of business or financial affairs on the part of the Issuer and the Series 2017-VFN Noteholders and (ii) made in the ordinary course of business or financial affairs of the Issuer and the Series 2017-VFN Noteholders.
SECTION 7.22Limitation of Liability of Owner Trustee.  
(i)  It is expressly understood and agreed by the parties hereto that (a) this document is executed and delivered by Wilmington Trust, National Association, not individually or personally but solely as owner trustee of the Issuer, in the exercise of the powers and authority conferred and vested in it, (b) each of the representations, undertakings and agreements herein made on the part of the Issuer is made and intended not as personal representations, undertakings and agreements by Wilmington Trust, National Association but is made and intended for the purpose of binding only the Issuer, (c) nothing herein contained shall be construed as creating any liability on Wilmington Trust, National Association, individually or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly waived by the parties hereto and by any Person claiming by, through or under the parties hereto, (d) Wilmington Trust, National Association has made no investigation as to the accuracy or completeness of any representations or warranties made by the Issuer in this Agreement, and (e) under no circumstances shall Wilmington Trust, National Association be personally liable for the payment of any indebtedness or expenses of the Issuer or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Issuer under this Agreement.
(ii)  The Transferor, as Equity Certificateholder, hereby:
(A)     consents to, and authorizes, empowers and directs the Owner Trustee, in the name and on behalf of the Issuer, to execute and deliver (a) this Agreement, (b) the Supplemental Indenture No. 2, dated of even date herewith, by and among the Issuer, the Servicer and the Indenture Trustee (the “Supplemental Indenture No. 2”), (c) the Amended and Restated Series 2017-VFN Indenture Supplement, dated of even date herewith, by and among the Issuer, the Servicer and the Indenture Trustee (the “A&R Series Supplement”), and (d) each other document, instrument or writing (including, without limitation, any Issuer Order and any Note) as may be referenced in, attached to, contemplated by, or necessary or convenient in connection with the transactions contemplated hereby or thereby;
(B)     instructs the Owner Trustee, in connection with the transactions contemplated by the A&R Series Supplement and the Supplemental Indenture No. 2 only, to waive the right to receive an Opinion of Counsel in connection with the execution thereof set forth in Section 2.12(c) of the Indenture; and
(C)    waives any notice in connection with the foregoing and certifies and confirms that (x) it is the sole Equity Certificateholder, (y) the foregoing direction and actions are necessary, suitable, or convenient in connection with the matters described in Section 2.03 of the Trust Agreement, and do not violate or conflict with, are not contrary to, are contemplated and authorized by, and are consistent and in accordance and compliance with the Trust Agreement, this Agreement and the Transaction Documents and the obligations of the Issuer and the Owner Trustee under the Trust Agreement, the this Agreement and the Transaction Documents, and (z) the foregoing directions are made by the Equity Certificateholder pursuant to Section 6.01 of the Trust Agreement, and the execution and delivery of such documents and the waiver of the right to receive an Opinion of Counsel are actions taken pursuant to such direction and therefore covered by the indemnifications provided under the Trust Agreement.
[signatures on following page]
53

IN WITNESS WHEREOF, the parties hereto have caused this Amended and Restated Series 2017-VFN Note Purchase Agreement to be duly executed by their respective officers as of the day and year first above written.

									
	USCC RECEIVABLES FUNDING LLC, 
as Transferor
			
	By:	/s/ Douglas W. Chambers
	Name:	Douglas W. Chambers	
	Title:	Vice President and Treasurer	
			
			
	USCC MASTER NOTE TRUST, 
as Issuer
			
	By:	Wilmington Trust, National Association, not in its individual capacity, but solely as Owner Trustee
	
	By:	/s/ Rachel Simpson	
	Name:	Rachel Simpson	
	Title:	Vice President	
			
			
	USCC SERVICES, LLC, 
as Servicer
			
	By:	/s/ John M. Toomey	
	Name:	John M. Toomey	
	Title:	Authorized Person	
			
	
	UNITED STATES CELLULAR CORPORATION,
as Performance Guarantor
			
	By:	/s/ John M. Toomey	
	Name:	John M. Toomey	
	Title:	Authorized Person	

[Signature Page to Amended and Restated Series 2017-VFN Note Purchase Agreement]

									
	ROYAL BANK OF CANADA
as Administrative Agent
			
	By:	/s/ Kevin P. Wilson
	Name:	Kevin P. Wilson	
	Title:	Authorized Signatory	
			
	By:	/s/ Chisolm L. Coleman
	Name:	Chisolm L. Coleman	
	Title:	Authorized Signatory	
			
	THUNDER BAY FUNDING, LLC,
as Conduit Purchaser
			
	By:	Royal Bank of Canada, as attorney-in-fact for Thunder Bay Funding, LLC
	
	By:	/s/ Kevin P. Wilson
	Name:	Kevin P. Wilson	
	Title:	Authorized Signatory	
			
	ROYAL BANK OF CANADA,
as a Committed Purchaser
			
	By:	/s/ Kevin P. Wilson
	Name:	Kevin P. Wilson	
	Title:	Authorized Signatory	
			
	By:	/s/ Chisolm L. Coleman
	Name:	Chisolm L. Coleman	
	Title:	Authorized Signatory	
			
			
	ROYAL BANK OF CANADA,
as Managing Agent
			
	By:	/s/ Kevin P. Wilson
	Name:	Kevin P. Wilson	
	Title:	Authorized Signatory	
			
	By:	/s/ Chisolm L. Coleman
	Name:	Chisolm L. Coleman	
	Title:	Authorized Signatory	

[Signature Page to Amended and Restated Series 2017-VFN Note Purchase Agreement]

									
	THE TORONTO-DOMINION BANK,
as Committed Purchaser
			
	By:	/s/ Jamie Giles
	Name:	Jamie Giles	
	Title:	Managing Director	
			
			
	THE TORONTO-DOMINION BANK,
as Managing Agent
	
	By:	/s/ Jamie Giles
	Name:	Jamie Giles	
	Title:	Managing Director	

[Signature Page to Amended and Restated Series 2017-VFN Note Purchase Agreement]

EXHIBIT A
FORM OF TRANSFER SUPPLEMENT
TRANSFER SUPPLEMENT, dated as of the date set forth in Item 1 of Schedule I hereto (this “Supplement”), among the Transferor Owner set forth in Item 2 of Schedule I hereto (the “Transferor Owner”), the Purchasing Owner set forth in Item 3 of Schedule I hereto (the “Purchasing Owner”), and the Managing Agent set forth in Item 4 of Schedule I hereto (in such capacity, the “Agent”) for the Ownership Group set forth in Item 5 of Schedule I hereto.
W I T N E S S E T H:
WHEREAS, this Supplement is being executed and delivered in accordance with Section 6.1(e) of the Amended and Restated Series 2017-VFN Note Purchase Agreement, dated as of October 23, 2020, among USCC Receivables Funding LLC, as Transferor, USCC Services, LLC, as Servicer, USCC Master Note Trust, as Issuer, United States Cellular Corporation, as Performance Guarantor, the Owners and the Managing Agents parties thereto and Royal Bank of Canada, as Administrative Agent (as from time to time amended, supplemented or otherwise modified in accordance with the terms thereof, the “Note Purchase Agreement”; unless otherwise defined herein, terms defined in the Note Purchase Agreement are used herein as therein defined);
WHEREAS, the Purchasing Owner (if it is not already an Owner party to the Note Purchase Agreement) wishes to become an Owner party to the Note Purchase Agreement and the Purchasing Owner wishes to acquire and assume from the Transferor Owner, certain of the rights, obligations and commitments under the Note Purchase Agreement; and
WHEREAS, the Transferor Owner wishes to sell and assign to the Purchasing Owner, certain of its rights, obligations and commitments under the Note Purchase Agreement.
NOW, THEREFORE, the parties hereto hereby agree as follows:
(a)Upon receipt by the Managing Agent of five counterparts of this Supplement, to each of which is attached a fully completed Schedule I and Schedule II, each of which has been executed by the Transferor Owner, the Purchasing Owner and the Managing Agent, the Managing Agent will transmit to the Servicer, the Issuer, the Indenture Trustee, the Transferor Owner and the Purchasing Owner a Transfer Effective Notice, substantially in the form of Schedule III to this Supplement (a “Transfer Effective Notice”).  Such Transfer Effective Notice shall be executed by the Managing Agent and shall set forth, inter alia, the date on which the transfer effected by this Supplement shall become effective (the “Transfer Effective Date”).  From and after the Transfer Effective Date the Purchasing Owner shall be an Owner party to the Note Purchase Agreement for all purposes thereof as a Conduit Purchaser or a Committed Purchaser, as specified on Schedule II to this Supplement.
(b)At or before 12:00 p.m., local time of the Transferor Owner, on the Transfer Effective Date, the Purchasing Owner shall pay to the Transferor Owner, in immediately available funds, an amount equal to the purchase price, as agreed between the Transferor Owner and such Purchasing Owner (the “Purchase Price”), of the portion set forth on Schedule II hereto being purchased by such Purchasing Owner of the outstanding Note Principal Balance under the Series 2017-VFN Note owned by the Transferor Owner (such Purchasing Owner’s “Owner Percentage”) and other amounts owing to the Transferor Owner under the Note Purchase Agreement or otherwise in respect of the Series 2017-VFN Notes.  Effective upon receipt by the Transferor Owner of the Purchase Price from the Purchasing Owner, the Transferor Owner hereby irrevocably sells, assigns and transfers to the Purchasing Owner, without recourse, representation or warranty, and the Purchasing Owner hereby irrevocably purchases, takes and assumes from the Transferor Owner, the Transferor Owner’s Owner Percentage of (i) the presently outstanding Note Principal Balance under the Series 2017-VFN Notes owned by the Transferor Owner and other amounts owing to the Transferor Owner in respect of the Series 2017-VFN Notes, together with all instruments, documents and collateral pertaining thereto, and (ii) the Transferor Owner’s Owner Percentage of (A) if the Transferor Owner is a Conduit Purchaser, the Owner Percentage of the Transferor Owner and the other rights and duties of the Transferor Owner under the Note Purchase Agreement, or (B) if the Transferor Owner is a Committed Purchaser, the Committed Percentage and the Commitment of the Transferor Owner and other rights, duties and obligations of the Transferor Owner under the Note Purchase Agreement.  This Supplement is intended by the parties hereto to effect a purchase by the Purchasing Owner and sale by the Transferor Owner of interests in the Series 2017-VFN Notes, and it is not to be construed as a loan or a commitment to make a loan by the Purchasing Owner to the Transferor Owner.  The Transferor Owner hereby confirms that the amount of the Note Principal Balance is $_________ and its Percentage Interest thereof is ___%, which equals $ as of _________, 200_.  Upon and after the Transfer Effective Date (until further modified in accordance with the Note Purchase Agreement), the Owner Percentage or Committed Percentage, as applicable of the Transferor Owner and the Purchasing Owner and the Commitment and the Committed Percentage, if applicable, if any, of the Transferor Owner and the Purchasing Owner shall be as set forth in Schedule II to this Supplement.
(c)The Transferor Owner has made arrangements with the Purchasing Owner with respect to (i) the portion, if any, to be paid, and the date or dates for payment, by the Transferor Owner to the Purchasing Owner of any fees heretofore received by the Transferor Owner pursuant to the Note Purchase Agreement prior to the Transfer Effective Date and (ii) the portion, if any, to be paid, and the date or dates for payment, by the Purchasing Owner to the Transferor Owner of fees or interest received by the Purchasing Owner pursuant to the Note Purchase Agreement or otherwise in respect of the Series 2017-VFN Notes from and after the Transfer Effective Date.
A-1

(d)(i)  All principal payments that would otherwise be payable from and after the Transfer Effective Date to or for the account of the Transferor Owner in respect of the Series 2017-VFN Notes shall, instead, be payable to or for the account of the Transferor Owner and/or the Purchasing Owner, as the case may be, in accordance with their respective interests as reflected in this Supplement.
    (ii)  All interest, fees and other amounts that would otherwise accrue for the account of the Transferor Owner from and after the Transfer Effective Date pursuant to the Note Purchase Agreement or in respect of the Series 2017-VFN Notes shall, instead, accrue for the account of, and be payable to or for the account of, the Transferor Owner and/or the Purchasing Owner, as the case may be, in accordance with their respective interests as reflected in this Supplement.  In the event that any amount of interest, fees or other amounts accruing prior to the Transfer Effective Date was included in the Purchase Price paid by the Purchasing Owner, the Transferor Owner and the Purchasing Owner will make appropriate arrangements for payment by the Transferor Owner to the Purchasing Owner of such amount upon receipt thereof from the Managing Agent.
(e)Concurrently with the execution and delivery hereof, the Purchasing Owner and its related Managing Agent will deliver to the Administrative Agent and the Issuer an executed Investment Letter in the form of Exhibit D to the Note Purchase Agreement.
(f)Each of the parties to this Supplement agrees and acknowledges that (i) at any time and from time to time upon the written request of any other party, it will execute and deliver such further documents and do such further acts and things as such other party may reasonably request in order to effect the purposes of this Supplement, and (ii) the Managing Agent shall apply each payment made to it under the Note Purchase Agreement, whether in its individual capacity or as Managing Agent, in accordance with the provisions of the Note Purchase Agreement, as appropriate.
(g)By executing and delivering this Supplement, the Transferor Owner and the Purchasing Owner confirm to and agree with each other, the Managing Agent and the Owners as follows:  (i) other than the representation and warranty that it is the legal and beneficial owner of the interest being assigned hereby free and clear of any adverse claim, the Transferor Owner makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with the Note Purchase Agreement or the Transaction Documents or the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Note Purchase Agreement or any other instrument or document furnished pursuant thereto; (ii) the Transferor Owner makes no representation or warranty and assumes no responsibility with respect to the Issuer, the financial condition of the Receivables, the Transferor, the Servicer, the Seller, the Originators, the Performance Guarantor, USCC or the Indenture Trustee, or the performance or observance by the Issuer, the Transferor, the Servicer, the Seller, the Originators, the Performance Guarantor, USCC or the Indenture Trustee of any of their respective obligations under the Note Purchase Agreement or any Transaction Document or any other instrument or document furnished pursuant hereto; (iii) each Purchasing Owner confirms that it has received a copy of such documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Supplement; (iv) each Purchasing Owner will, independently and without reliance upon the Administrative Agent, any Managing Agent (as defined in the Note Purchase Agreement) the Transferor Owner or any other Owner and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Note Purchase Agreement or the Transaction Documents; (v) the Purchasing Owner appoints and authorizes the Managing Agent and the Administrative Agent to take such action as agent on its behalf and to exercise such powers under the Note Purchase Agreement and the Transaction Documents as are delegated to the Managing Agent or the Administrative Agent, as the case may be, by the terms thereof, together with such powers as are reasonably incidental thereto, all in accordance with Article VII of the Note Purchase Agreement; and (vi) each Purchasing Owner agrees (for the benefit of the Transferor Owner, the Administrative Agent, the Managing Agents (as defined in the Note Purchase Agreement), the Owners, the Indenture Trustee, the Servicer and the Issuer) that it will perform in accordance with their terms all of the obligations which by the terms of the Note Purchase Agreement are required to be performed by it as an Owner.
(h)Schedule II hereto sets forth the revised Owner Percentage or the revised Committed Percentage, if applicable, and Commitment of the Transferor Owner, as applicable, the Owner Percentage or the Committed Percentage, if applicable, Commitment and Scheduled Commitment Termination Date of the Purchasing Owner, as applicable, and the initial Investing Office of the Purchasing Owner, as well as administrative information with respect to the Purchasing Owner.
(i)THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
IN WITNESS WHEREOF, the parties hereto have caused this Supplement to be executed by their respective duly authorized officers on Schedule I hereto as of the date set forth in Item 1 of Schedule I hereto.
A-2

SCHEDULE I TO
TRANSFER SUPPLEMENT

COMPLETION OF INFORMATION AND
SIGNATURES FOR TRANSFER SUPPLEMENT

Re:     Amended and Restated Series 2017-VFN Note Purchase Agreement, dated as of October 23, 2020, among USCC Receivables Funding LLC, as Transferor, USCC Master Note Trust, as Issuer, USCC Services, LLC, as Servicer, United States Cellular Corporation, as Performance Guarantor, the Owners and the Managing Agents parties thereto and Royal Bank of Canada, as Administrative Agent
Item 1: Date of Transfer Supplement:
Item 2: Transferor Owner:
Item 3: Purchasing Owner:
Item 4: Name of Agent:
Item 5: Name of Ownership Group:
Item 6: Signatures of Parties to Agreement:
									
	as Transferor Owner
			
	By:	
	Name:
	Title:
			
	By:	
	Name:
	Title:
			
	as Purchasing Owner	
	
	By:		
	Name:	
	Title:
			
	By:	
	Name:
	Title:

Schedule I-1

									
	CONSENTED TO AND ACCEPTED BY:
[NAME OF MANAGING AGENT], as Managing Agent
			
	By:	
	Name:
	Title:
			
	By:	
	Name:
	Title:
			
	[If applicable:]
	ROYAL BANK OF CANADA, as Administrative Agent
			
	By:	
	Name:
	Title:

Schedule I-2

SCHEDULE II TO
TRANSFER SUPPLEMENT

LIST OF INVESTING OFFICES, ADDRESSES
FOR NOTICES, ASSIGNED INTERESTS AND
PURCHASE AND COMMITTED PERCENTAGES

[Transferor Owner]
									
	A.	Type of Owner:  [Conduit Purchaser/Committed]	
	B.	Owner Percentage:	
		Transferor Owner Percentage	
		Prior to Sale:	_____%
		Owner Percentage Sold:	_____%
		Owner Percentage Retained:	_____%
	C.	Commitment (if applicable)	
		Transferor Owner Commitment Prior to Sale:	$________
		Commitment Sold:	$________
		Commitment Retained:	$________
		Related Conduit Purchaser (applicable to Committed Purchaser):_________	
	D.	Related Committed Purchasers (applicable to Conduit Purchaser)
Committed Purchasers, Commitments and Committed Percentages prior to Sale:
	

												
		_________________________	$____________	____%
		_________________________	$____________	____%
		_________________________	$____________	_____%

									
	E.  Note Principal Balance:
		
	Transferor Owner		
	Note Principal Balance Prior to Sale:		$________
	Note Principal Balance Sold:		$________
	Note Principal Balance Retained:		$________

[Purchasing Owner]
									
	A.	Type of Owner:  [Conduit Purchaser/Committed]	
	B.	Owner Percentage:
	
	Purchasing Owner Percentage
After Sale:	____%
	C.	Commitment (if applicable)	
		Purchasing Owner Commitment	
		After Sale:	$________
		Related Conduit Purchaser (applicable to Committed Purchaser):
___________________
	
	D.	Related Committed Purchasers (applicable to Conduit Purchaser)
Committed Purchasers, Commitments and Committed Percentages prior to Sale:
	

												
		_________________________	$____________	____%
		_________________________	$____________	____%
		_________________________	$____________	_____%

Schedule II-1

									
	E.  Note Principal Balance:
		
	Purchasing Owner		
	Note Principal Balance After Sale:		$________

Scheduled Commitment Termination Date:
Address for Notices:

Investing Office:
 Schedule II-2

SCHEDULE III TO
TRANSFER SUPPLEMENT
Form of
Transfer Effective Notice

						
	To:	[Name and address of Issuer,
		Servicer, Indenture Trustee, Administrative
		Agent, Transferor Owner and
		Purchasing Owner]

The undersigned, as Administrative Agent under the Amended and Restated Series 2017-VFN Note Purchase Agreement, dated as of October 23, 2020, among USCC Receivables Funding LLC, as Transferor, USCC Master Note Trust, as Issuer, USCC Services, LLC, as Servicer, United States Cellular Corporation, as Performance Guarantor, the Owners and the Managing Agents parties thereto and Royal Bank of Canada, as Administrative Agent, acknowledges receipt of five executed counterparts of a completed Transfer Supplement.  [Note: attach copies of Schedules I and II from such Agreement.]  Terms defined in such Supplement are used herein as therein defined.
Pursuant to such Supplement, you are advised that the Transfer Effective Date will be _____________, ____.
						
	Very truly yours,
	ROYAL BANK OF CANADA,
	as Administrative Agent
		
		
	By:	
	Name:
	Title:
	
		

Schedule III-1

EXHIBIT B
FORM OF FUNDING NOTICE
[Date]
U.S. Bank National Association
190 South LaSalle Street
Chicago, IL 60603
MK-IL-SL7C
Telephone: (312) 332-7456
Facsimile: (312) 332-7992
Attention: USCC Master Note Trust
Electronic Mail:  Edwin.Janis@usbank.com
USCC Services, LLC,
as Servicer
30 N. LaSalle, Suite 4000
Chicago, IL 60602
Attention:  John M. Toomey 
Telephone: 312-592-5308
Facsimile: 608-830-5530
Electronic Mail:  John.Toomey@tdsinc.com

USCC Services, LLC,
as Servicer
8410 West Bryn Mawr Avenue
Chicago, Illinois  60631
Attention:  Doug Chambers 
Telephone: (773)-399-8930
Electronic Mail:  doug.chambers@uscellular.com 

Royal Bank of Canada,
as Administrative Agent
200 Vesey Street
New York, New York 10281-8098
Attn:  Securitization Finance
Telephone: (212)-428-6537
Email:  conduit.management@rbccm.com 
									
		RE:	USCC Master Note Trust
			Series 2017-VFN Notes

Ladies and Gentlemen:
Pursuant to Section 3.2 of the Amended and Restated Series 2017-VFN Note Purchase Agreement, dated as of October 23, 2020 (the “Note Purchase Agreement”) among USCC Receivables Funding LLC, as Transferor, USCC Master Note Trust, as Issuer, USCC Services, LLC, as Servicer, United States Cellular Corporation, as Performance Guarantor, the Owners and the Managing Agents parties thereto and Royal Bank of Canada, as Administrative Agent, the Issuer hereby irrevocably requests the Owners fund a Note Principal Balance Increase as follows.  Terms used herein are used as defined in or for purposes of the Note Purchase Agreement.
1.The requested amount of such Note Principal Balance Increase is $______________.
2.The date of such Note Principal Balance Increase is to occur is _____________________ (the “Increase Date”).
3.All conditions precedent to such Note Principal Balance Increase set forth in Section 3.2 of the Note Purchase Agreement have been satisfied.
4.The proceeds of such Note Principal Balance Increase shall be remitted on the Increase Date in immediately available funds to [specify payment instructions].
B-1

						
	Very truly yours,
		
	USCC MASTER NOTE TRUST, as Issuer
		
	By:	USCC Services, LLC, as Administrator
		
		
	By:	
		Name:
		Title:

-2-

EXHIBIT C

FORM OF COMPLIANCE CERTIFICATE 
Certificate of
Treasurer/Chief Operating Officer
The undersigned do hereby certify pursuant to Section 4.7(c)(iii) of the Amended and Restated Series 2017-VFN Note Purchase Agreement, dated as of October 23, 2020 (the “Note Purchase Agreement”) among USCC Receivables Funding LLC, as Transferor, USCC Master Note Trust, as Issuer, USCC Services, LLC, as Servicer, United States Cellular Corporation, as Performance Guarantor the Owners and Managing Agents party thereto, and Royal Bank of Canada, as Administrative Agent, that on, and as of the date hereof, [to his or her knowledge after due inquiry, no Default, Event of Default, Amortization Event, Potential Amortization Event, Servicer Default or Potential Servicer Default has occurred and is continuing] [the nature and status of the existing (Default / Event of Default / Amortization Event / Potential Amortization Event / Servicer Default / Potential Servicer Default) is             ______].
Capitalized terms not otherwise defined herein have the meanings assigned to them in the Note Purchase Agreement.
IN WITNESS WHEREOF, the undersigned have executed this Certificate this                                         day of             , 201    .
						
	USCC RECEIVABLES FUNDING LLC
		
		
	By:	
	Name:	
	Title:	

C-1

EXHIBIT D

FORM OF INVESTMENT LETTER
[Date]
USCC Master Note Trust
30 N. LaSalle, Suite 4000
Chicago, IL 60602
Attention:  John M. Toomey 
Telephone: 312-592-5308
Facsimile: 608-830-5530
Electronic Mail:  John.Toomey@tdsinc.com

USCC Master Note Trust
8410 West Bryn Mawr Avenue
Chicago, Illinois  60631
Attention:  Doug Chambers
Telephone: 773-399-8930
Electronic Mail:  doug.chambers@uscellular.com 

U.S. Bank National Association,
  as Indenture Trustee
111 Fillmore Ave
St. Paul, MN 55107
Attention: USCC Master Note Trust/Bondholder Services
									
		Re:	USCC Master Note Trust
			Series 2017-VFN Notes (the "Notes")

Ladies and Gentlemen:
Reference is hereby made to the Master Indenture, dated as of December 20, 2017 (as amended or supplemented from time to time, the “Master Indenture”), among USCC Master Note Trust (the “Issuer”), USCC Services, LLC, as servicer (the “Servicer”), and U.S. Bank National Association, as indenture trustee (in such capacity, the “Indenture Trustee”), as supplemented by the Amended and Restated Series 2017-VFN Indenture Supplement, dated as of October 23, 2020, among the Issuer, the Servicer and the Indenture Trustee (as amended or supplemented from time to time, the “Series 2017-VFN Indenture Supplement” and, together with the Master Indenture, collectively, the “Indenture”).  Capitalized terms used but not defined in this Investment Letter shall have the meanings assigned to such terms in Annex A to the Indenture, or the Note Purchase Agreement (as defined below), and if not defined in the Indenture or the Note Purchase Agreement, then such terms shall have the meanings assigned to them in Regulation D (“Regulation D”) or Rule 144A (“Rule 144A”) under the Securities Act of 1933, as amended (the “Securities Act”).
This Investment Letter relates to the [transfer][initial funding] of the above-referenced Notes in an aggregate [initial] principal amount of U.S.$ [__________] [to] [by] the undersigned [, as a Managing Agent, Conduit Purchaser or Committed Purchaser, as applicable, and with respect to itself only] [(the “Transferee”)] [(the “Initial Purchaser”)] and is being delivered pursuant to [Section 6.1] [Section 4.5(b)] of the Amended and Restated Series 2017-VFN Note Purchase Agreement, dated as of October 23, 2020, by and among USCC Receivables Funding LLC, as transferor (the “Transferor”), the Issuer, the Servicer, United States Cellular Corporation, as Performance Guarantor, Royal Bank of Canada, as Administrative Agent, and the Owners and Managing Agents party thereto from time to time (as amended or supplemented from time to time, the “Note Purchase Agreement”).  In connection with [such transfer, the Transferee hereby, certifies that such transfer has been effected in accordance with the transfer restrictions set forth in the Indenture with respect to the Transferee and] [the initial funding, the Initial Purchaser] hereby represents, warrants and agrees for the benefit of the Issuer and the Registrar as follows:
a.No Note or any interest therein may be sold or transferred (including by pledge or hypothecation) to any other Person (other than a Person that is an Owner immediately prior to such transfer) unless such sale or transfer is to a Qualified Institutional Buyer.  Any purported transfer of the Notes to a transferee that does not comply with the requirements of this letter shall be null and void ab initio.
b.The [Transferee] [Initial Purchaser] hereby represents and agrees with the Issuer as follows:
D-1

(i)   The [Transferee] [Initial Purchaser] is (a) a Qualified Institutional Buyer, (b) aware that the sale of the Notes to it is being made in reliance on the exemption from registration provided by Rule 144A, and (c) acquiring the Notes for its own account or for one or more accounts, each of which is a Qualified Institutional Buyer, and as to each of which the owner exercises sole investment discretion, and in a principal balance of not less than the minimum denomination of such Note for the purchaser and for each such account.  Any purported transfer of the Notes to a purchaser that does not comply with the requirements of this paragraph shall be null and void ab initio.  The Issuer may sell any Notes acquired in violation of the foregoing at the cost and risk of purported owner.
(ii)   The Notes may not at any time be held by or on behalf of any Person that is not a Qualified Institutional Buyer.
(iii)   The [Transferee] [Initial Purchaser] understands that the Notes are being offered only in a transaction not involving any public offering in the United States within the meaning of the Securities Act, none of the Notes have been or will be registered under the Securities Act, and, if in the future the [Transferee] [Initial Purchaser] decides to offer, resell, pledge or otherwise transfer the Notes, such Notes may only be offered, resold, pledged or otherwise transferred in accordance with the Series 2017-VFN Indenture Supplement and the applicable legends set forth on the Notes delivered to us.  The [Transferee] [Initial Purchaser] acknowledges that no representation is made by the Transferor or the Issuer, as the case may be, as to the availability of any exemption under the Securities Act or any applicable state securities laws for resale of the Notes.
(iv)   [Transferee] [Initial Purchaser] understands that an investment in the Notes involves certain risks, including the risk of loss of all or a substantial part of its investment under certain circumstances.  The [Transferee] [Initial Purchaser] has had access to such financial and other information concerning the Issuer, the Receivables, the Servicer and the Notes as it deemed necessary or appropriate in order to make an informed investment decision with respect to its purchase of the Notes, including an opportunity to ask questions of and request information from the Servicer and the Issuer.  The [Transferee] [Initial Purchaser] has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment in the Notes, and the [Transferee] [Initial Purchaser] and any accounts for which it is acting is able to bear the economic risk of the [Transferee’s] [Initial Purchaser’s] or of its investment.
(v)   In connection with the transfer of the Notes (a) none of the Issuer, the Servicer, the Transferor or the Indenture Trustee is acting as a fiduciary or financial or investment adviser for the [Transferee] [Initial Purchaser], (b) the [Transferee] [Initial Purchaser] is not relying (for purposes of making any investment decision or otherwise) upon any advice, counsel or representations (whether written or oral) of the Issuer, the Servicer, the Transferor, the Performance Guarantor, USCC or the Indenture Trustee other than in the most current offering memorandum for such Notes and any representations expressly set forth in a written agreement with such party, (c) none of the Issuer, the Servicer, the Transferor nor the Indenture Trustee has given to the [Transferee] [Initial Purchaser] (directly or indirectly through any other person) any assurance, guarantee, or representation whatsoever as to the expected or projected success, profitability, return, performance, result, effect, consequence, or benefit (including legal, regulatory, tax, financial, accounting, or otherwise) of its purchase or the documentation for the Notes, (d) the [Transferee] [Initial Purchaser] has consulted with its own legal, regulatory, tax, business, investment, financial, and accounting advisers to the extent it has deemed necessary, and it has made its own investment decisions (including decisions regarding the suitability of any transaction pursuant to the Series 2017-VFN Indenture Supplement) based upon its own judgment and upon any advice from such advisers as it has deemed necessary and not upon any view expressed by the Issuer, the Servicer, the Transferor, the Performance Guarantor, USCC or the Indenture Trustee, (e) the [Transferee] [Initial Purchaser] has determined that the rates, prices or amounts and other terms of the purchase and sale of the Notes reflect those in the relevant market for similar transactions, (f) the [Transferee] [Initial Purchaser] is purchasing the Notes with a full understanding of all of the terms, conditions and risks thereof (economic and otherwise), and is capable of assuming and willing to assume (financially and otherwise) these risks, and (g) the [Transferee] [Initial Purchaser] is a sophisticated investor familiar with transactions similar to its investment in the Notes.
(vi)   Either (1) the [Transferee] [Initial Purchaser] is not and is not acting on behalf of (a) an “employee benefit plan” as defined in Section 3(3) of ERISA, that is subject to Title I of ERISA, (b) a “plan” as defined in Section 4975 of the Code that is subject to Section 4975, (c) an entity whose underlying assets include “plan assets” by reason of such employee benefit plan’s or plan’s investment in the entity or (d) any governmental, church, non-U.S. or other plan subject to any federal, state, local or non-U.S. law that is substantially similar to Title I of ERISA or Section 4975 of the Code or (2) the [Transferee’s] [Initial Purchaser’s] purchase, holding and disposition of such Note (or interest therein) will not result in a nonexempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or a violation of any substantially similar applicable law.
(vii)   The [Transferee] [Initial Purchaser] will not, at any time, offer to buy or offer to sell the Notes by any form of general solicitation or advertising, including, but not limited to, any advertisement, article, notice or other communication published in any newspaper, magazine or similar medium or broadcast over television or radio or at a seminar or meeting whose attendees have been invited by general solicitations or advertising.
D-2

(viii)   The [Transferee] [Initial Purchaser] is not acquiring the Notes with a view to the resale, distribution or other disposition thereof in violation of the Securities Act.
(ix)   The [Transferee] [Initial Purchaser] will provide notice to each Person to whom it proposes to transfer any interest in the Notes of the transfer restrictions and representations set forth in the Series 2017-VFN Indenture Supplement, including the exhibits thereto.
(x)   The [Transferee] [Initial Purchaser] acknowledges that the Notes do not represent deposits with or other liabilities of the Indenture Trustee, the Servicer, the Transferor or any entity related to any of them or any other purchaser of Notes.  Unless otherwise expressly provided herein, each of the Indenture Trustee, the Servicer, the Transferor, any entity related to any of them and any other purchaser of Notes will not, in any way, be responsible for or stand behind the capital value or the performance of the Notes or the assets held by the Issuer.  The [Transferee] [Initial Purchaser] acknowledges that acquisition of Notes involves investment risks including prepayment and interest rate risks, possible delay in repayment and loss of income and principal invested.
[Signature Page Follows]
D-3

						
	Very truly yours,
		
	[_____________],
	as [Transferee] [Managing Agent] [Conduit Purchaser] [Committed Purchaser]
		
		
	By:	____________________________________
		Name:
		Title:

D-4

EXHIBIT E
[RESERVED]
E-1

 

EXHIBIT F
FORM OF INTEREST RATE CAP AGREEMENT
[Attached]
F-1

EXHIBIT G
HEDGING REQUIREMENTS
Terms used in this Exhibit G shall have the meaning specified in (i) the Amended and Restated Series 2017-VFN Note Purchase Agreement, dated as of October 23, 2020 (the “Note Purchase Agreement”), among USCC Receivables Funding LLC, as Transferor (the “Transferor”), USCC Master Note Trust, as Issuer (the “Issuer”), USCC Services, LLC, individually and as Servicer (the “Servicer”), United States Cellular Corporation, as performance guarantor, the Owners party thereto, the Managing Agents party thereto and Royal Bank of Canada, as administrative agent, or if not defined therein, in the Series 2017-VFN Supplement (as defined in the Note Purchase Agreement).
(a)Until the Note Principal Balance have been reduced to zero and all amounts under the Indenture Supplement, the Note Purchase Agreement, the Fee Letter, the Administrative Agent Fee Letter, and all other applicable Transaction Documents have been repaid in full with respect to the Series 2017-VFN Notes, the Issuer shall maintain one or more Eligible Interest Rate Caps with an Eligible Cap Counterparty, in each case in accordance with the following requirements:
(i)such Eligible Interest Rate Caps shall, in aggregate, be in a notional amount, equal to (A) for any Payment Date prior to the Scheduled Commitment Termination Date, at least the Facility Limit, and (B) for any Payment Date after the Scheduled Commitment Termination Date, the notional amount as of the last Payment Date prior to the Scheduled Commitment Termination Date reduced by one thirtieth of such notional amount per month;
(ii)such Eligible Interest Rate Caps shall provide that the applicable Cap Counterparty’s payment obligations be calculated by reference to the notional amount hedged thereunder and a per annum rate specified in the long-form confirmation, a form of which is provided in Exhibit F to the Note Purchase Agreement) (the “Confirmation”), determined for and taking effect as of the relevant dates set forth in the Confirmation;
(iii)such Eligible Interest Rate Caps shall provide for payments to be paid on the Business Day immediately prior to each Payment Date by the Cap Counterparty by transfer directly into the Collection Account for the benefit of the Owners;
(iv)such Eligible Interest Rate Caps shall provide for the Servicer to make the full up-front payment of any premium due upon entry by the Issuer into each Eligible Interest Rate Cap;
(v)such Eligible Interest Rate Caps have been pledged to secure the due and punctual payment of all amounts owing to the Managing Agents and their respective related Owners in connection with the Tranche Invested Amount of each such Owner; and
(vi)the Transferor (on behalf of the Issuer), the Servicer and the Administrative Agent shall have agreed on the strike rate for such Eligible Interest Rate Cap.
(b)In the event that, due to withdrawal or downgrade, a Cap Counterparty no longer meets the requirements of an Eligible Cap Counterparty, the Transferor (on behalf of the Issuer) shall, (A) as soon as reasonably possible, (i) arrange for the Cap Counterparty to post collateral as required in the long-form confirmation, a form of which is provided in Exhibit F to the Note Purchase Agreement, which will be deposited into a hedge collateral account (to be established at the time of such collateral posting) for the benefit of the Owners, (ii) obtain a guaranty of, or a contingent agreement of another Eligible Cap Counterparty to honor, the Cap Counterparty’s obligations under the related Eligible Interest Rate Cap, or (iii) arrange for the adversely affected Cap Counterparty’s obligations and rights under the related Eligible Interest Rate Cap to be assumed by and assigned to a replacement Eligible Cap Counterparty, and (B) within thirty (30) days of such occurrence, if the Cap Counterparty fails to comply with the requirements of (A) above, terminate the existing Eligible Interest Rate Cap and/or arrange for a new Eligible Interest Rate Cap with an Eligible Cap Counterparty.
(c)Upon execution of any Eligible Interest Rate Cap with an Eligible Cap Counterparty, the Issuer shall deliver the executed long-form confirmation related to such Eligible Interest Rate Cap to the Administrative Agent within three (3) Business Days.
G-1

ANNEX I

Agreed-Upon Procedures
Scope of Services:

•Review whether a selected sample of Receivables consists of Eligible Receivables at the time of conveyance.
•Review whether such selected sample of Receivables sold by the Transferor is stated as being assigned to the special-purpose vehicle in the Transferor’s books and records.
•Review whether the Credit and Collections Policies are being complied with in accordance with the terms of the Transaction Documents.
◦Determine if accounts are being properly aged in accordance with the terms and methodology (note any receivables that may be aged in a non-conforming manner).
◦Obtain a breakdown, by type, of dilutions and write-offs issued in a Collection Period and whether they are being applied in accordance with the Credit and Collection Policies.
•Review application of Collections under the Transaction Documents to determine if such Collections are being applied and remaining balances are being reflected in accordance with the Transaction Documents.
•Select a sample of Monthly Reports and re-perform certain calculations contained therein in accordance with the Transaction Documents.
◦Review whether Excess Concentration limits are being applied in accordance to the Transaction Documents, as applicable. 
◦Review calculation of financial covenants, as applicable, to determine if such covenants are being calculated in accordance with the Transaction Documents.
◦Review calculation of Dilution Ratio, Default Ratio and Delinquency Ratio, as applicable, to determine if such ratios are being calculated in accordance with the Transaction Documents.
•Review whether the Asset Base Deficiency test calculation is being properly completed in connection with the Transaction Documents.
Procedures:
•Sample selection: The adherence to the criteria set forth in the definition of “Eligible Receivable” shall be verified by means of a generally accepted procedure, with an appropriate sample size of Transferred Assets using random number generator as a generally accepted non-statistical sampling method to select the sample of Receivables. Sample selection will also be used to verify the above procedures and calculations.
Annex I-1

SCHEDULE I

CONDUIT PURCHASER, COMMITTED PURCHASER, MANAGING AGENTS AND RELATED INFORMATION

																											
	Name of Conduit Purchaser	Name of Committed Purchaser(s)	Name of Managing Agent	Ownership Group	Address/Telecopy for Notices	Account for Funds Transfer	Ownership Group Commitment	Ownership Group Percentage	Tranche Invested Amount (as of the 2020 Amendment Closing Date)
	Thunder Bay Funding, LLC	Royal Bank of Canada	Royal Bank of Canada	Thunder Bay Funding, LLC
Royal Bank of Canada, as Committed Purchaser, Managing Agent and Conduit Support Provider
Delayed Funding Ownership Group
 (Y/N):  Yes
	Thunder Bay Funding, LLC
c/o Global Securitization Services, LLC
68 South Service Road
Suite 120
Melville, New York 11747
Attn:  Kevin Burns
Tel: (631)-587-4700
Email:  conduitadmin@gssnyc.com
With a copy to:
Royal Bank of Canada
Two Little Falls Center
2751 Centerville Road
Suite 212
Wilmington, Delaware 19808
Tel: (302) 892-5903
Email: 
conduit.management@rbccm.com
With copies of Funding Notices to:
conduit.funding@rbccm.com
	Bank:
Deutsche Bank Trust Company Americas
ABA #:
021-001-033
N/O:
Thunder Bay 
Funding LLC
Account #: 
00-363-610
Acct. Ref: 
USCC Master Note Trust
	$150,000,000	50%	$62,500,000

II-1

 

																											
	[none]	The Toronto-Dominion Bank	The Toronto-Dominion Bank	The Toronto-Dominion Bank, as Committed Purchaser 
The Toronto-Dominion Bank, as Managing Agent
Delayed Funding Ownership Group
 (Y/N):  Yes
	The Toronto-Dominion Bank
Attn: Imran Qadri
77 King Street West
TD North Tower, 25th Floor
Toronto, Ontario, M5K 1A2
Tel: (416) 944-5097
Fax: (416) 983-1761 Imran.Qadri@tdsecurities.com
With a copy to:
The Toronto-Dominion Bank
Attn: Asset Securitization
77 King Street West
TD North Tower, 25th Floor
Toronto, Ontario, M5K 1A2
Tel: (416) 944-5097
Fax: (416) 983-1761
ASGOperations@tdsecurities.com
	Intermediary Bank:
Bank of America, New York, NY USA
FED ABA #: 026009593
Beneficiary Bank:
TD Canada Trust, 55 King Street West, Toronto
Swift Code:
TDOMCATTTOR
Transit #:
1068
Beneficiary Account #:
1068-7302571
Beneficiary Name:
Banner Trust

	$150,000,000	50%	$62,500,000

2

SCHEDULE II

NOTICE INFORMATION
						
	Issuer:	USCC Master Note Trust
30 N. LaSalle, Suite 4000
Chicago, IL 60602
Attention:  John M. Toomey 
Telephone: 312-592-5308
Facsimile: 608-830-5530
Electronic Mail:  John.Toomey@tdsinc.com

With a copy to (which shall not constitute notice):

USCC Master Note Trust
8410 West Bryn Mawr Avenue
Chicago, Illinois  60631
Attention:  Doug Chambers 
Telephone: (773) 399-8930
Electronic Mail:  doug.chambers@uscellular.com

and

Sidley Austin LLP
One S. Dearborn Street
Chicago, Illinois  60603
Attention:  Stephen P. Fitzell, General Counsel 
Telephone: (312) 853-7379
Facsimile:  (312) 853-7036
Electronic Mail:  sfitzell@sidley.com

	Transferor:	USCC Receivables Funding LLC
30 N. LaSalle, Suite 4000
Chicago, IL 60602
Attention:  John M. Toomey 
Telephone: 312-592-5308
Facsimile: 608-830-5530
Electronic Mail:  John.Toomey@tdsinc.com

With a copy to (which shall not constitute notice):

USCC Receivables Funding LLC
8410 West Bryn Mawr Avenue
Chicago, Illinois  60631
Attention:  Doug Chambers 
Telephone: 773-399-8930
Electronic Mail:  doug.chambers@uscellular.com

and
Sidley Austin LLP
One S. Dearborn Street
Chicago, Illinois  60603
Attention:  Stephen P. Fitzell, General Counsel
Telephone: (312) 853-7379
Facsimile:  (312) 853-7036
Electronic Mail:  sfitzell@sidley.com

 

						
	Servicer:	USCC Services, LLC
30 N. LaSalle, Suite 4000
Chicago, IL 60602
Attention:  John M. Toomey 
Telephone: 312-592-5308
Facsimile: 608-830-5530
Electronic Mail:  John.Toomey@tdsinc.com 

With a copy to (which shall not constitute notice):

USCC Services, LLC
8410 West Bryn Mawr Avenue
Chicago, Illinois  60631
Attention:  Doug Chambers 
Telephone: 773-399-8930
Electronic Mail:  doug.chambers@uscellular.com

and

Sidley Austin LLP
One S. Dearborn Street
Chicago, Illinois  60603
Attention:  Stephen P. Fitzell, General Counsel 
Telephone: (312) 853-7379
Facsimile:  (312) 853-7036
Electronic Mail:  sfitzell@sidley.com 

	Performance Guarantor:	United States Cellular Corporation
30 N. LaSalle, Suite 4000
Chicago, IL 60602
Attention:  John M. Toomey 
Telephone: 312-592-5308
Facsimile: 608-830-5530
Electronic Mail:  John.Toomey@tdsinc.com

With a copy to (which shall not constitute notice):

United States Cellular Corporation
8410 West Bryn Mawr Avenue
Chicago, Illinois  60631
Attention:  Doug Chambers 
Telephone: 773-399-8930
Electronic Mail:  doug.chambers@uscellular.com

and
Sidley Austin LLP
One S. Dearborn Street
Chicago, Illinois  60603
Attention:  Stephen P. Fitzell, General Counsel 
Telephone: (312) 853-7379
Facsimile:  (312) 853-7036
Electronic Mail:  sfitzell@sidley.com

	Administrative Agent:	Royal Bank of Canada
200 Vesey Street
New York, New York  10281-8098
Attn:  Securitization Finance
Telephone:  (212)-428-6537
Email:  conduit.management@rbccm.com

2

SCHEDULE III

ORGANIZATIONAL INFORMATION
United States Cellular Corporation:
Chief Executive Office;    8410 West Bryn Mawr Avenue
Principal Place of Business:    Chicago, IL  60631

Locations of Records:    8410 West Bryn Mawr Avenue
    Chicago, IL  60631
Delaware Organizational    
Identification Number:    2024126
Federal Employer
Identification Number:    62-1147325
Prior Name(s) in the Last 5 Years:    None

USCC Receivables Funding LLC:

Chief Executive Office;    8410 West Bryn Mawr Avenue
Principal Place of Business:    Chicago, IL  60631
Locations of Records:    8410 West Bryn Mawr Avenue
    Chicago, IL  60631
Delaware Organizational    
Identification Number:    6574612
Federal Employer
Identification Number:    38-4050222
Prior Name(s) in the Last 5 Years:    None

USCC Services, LLC:

Chief Executive Office;    8410 West Bryn Mawr Avenue
Principal Place of Business:    Chicago, IL  60631
Locations of Records:    8410 West Bryn Mawr Avenue
    Chicago, IL  60631
Delaware Organizational    
Identification Number:    2555848
Federal Employer
Identification Number:    36-4046814
Prior Name(s) in the Last 5 Years:    USCC Services LLC (Del. LLC) converted from USCC Payroll Corporation (Delaware corporation) effective 3/1/13

USCC Master Note Trust:

Chief Executive Office;    8410 West Bryn Mawr Avenue
Principal Place of Business:    Chicago, IL  60631
III-1

 

Locations of Records:    8410 West Bryn Mawr Avenue
    Chicago, IL  60631
Delaware Organizational    
Identification Number:    6590928
Federal Employer
Identification Number:    32-6490609
Prior Name(s) in the Last 5 Years:    None
2exhibit101_finalnewyorka

                                                                                      Exhibit 10.1                                                                              EXECUTION VERSION                     =================================================                                                                                                                                                                                                                                                 1166 LLC                                                                                                                                             LANDLORD                                                                                                                                                                                                  AND                                                                                                                                                                                        FTI CONSULTING, INC.                                                                                                                                               TENANT                                                                                                                                                                                                                                                                                                                                                                                                                                                                             AMENDED AND RESTATED                                                                       L E A S E                                                                                                                                                                                                                                                                         DATED: as of October 26, 2020                                                                                                                                                                                                                                                                                                                      Demised Premises:                  Entire 14th, 15th and 16th Floors                                                   1166 Avenue of the Americas                                                   New York, New York 10036                                                                                                                                                                                                                        =================================================                                                      NY 78267766v2 

 

                                     TABLE OF CONTENTS                                                                                                Page    ARTICLE 1.     DEFINED TERMS; DEMISE OF PREMISES ................................................................................ 2  ARTICLE 2.     COMMENCEMENT OF LEASE TERM; LANDLORD’S WORK & CONTRIBUTION ............. 7  ARTICLE 3.     RENT .............................................................................................................................................. 15  ARTICLE 4.     USE ................................................................................................................................................. 17  ARTICLE 5.     ALTERATIONS; LIENS; TENANT’S PROPERTY ..................................................................... 21  ARTICLE 6.     REPAIRS AND MAINTENANCE ................................................................................................ 32  ARTICLE 7.     COMPLIANCE WITH LAW ......................................................................................................... 35  ARTICLE 8.     INSURANCE .................................................................................................................................. 38  ARTICLE 9.     FIRE OR CASUALTY ................................................................................................................... 41  ARTICLE 10.    ASSIGNMENT AND SUBLETTING ............................................................................................ 44  ARTICLE 11.    NON-LIABILITY; INDEMNIFICATION; ARBITRATION ........................................................ 56  ARTICLE 12.    CONDEMNATION ........................................................................................................................ 59  ARTICLE 13.    ACCESS; BUILDING NAME ....................................................................................................... 60  ARTICLE 14.    BANKRUPTCY ............................................................................................................................. 63  ARTICLE 15.    DEFAULTS, REMEDIES, DAMAGES ......................................................................................... 64  ARTICLE 16.    CURING TENANT’S DEFAULTS; REIMBURSEMENT ........................................................... 67  ARTICLE 17.    QUIET ENJOYMENT .................................................................................................................... 68  ARTICLE 18.    BUILDING SERVICES ................................................................................................................. 68  ARTICLE 19.    TAXES; OPERATING EXPENSES .............................................................................................. 73  ARTICLE 20.    ELECTRICITY ............................................................................................................................... 83  ARTICLE 21.    BROKER ........................................................................................................................................ 88  ARTICLE 22.    SUBORDINATION; NON-DISTURBANCE ................................................................................ 88  ARTICLE 23.    ESTOPPEL CERTIFICATE; DELIVERY OF FINANCIALS ...................................................... 91  ARTICLE 24.    LEGAL PROCEEDINGS ............................................................................................................... 92  ARTICLE 25.    SURRENDER ................................................................................................................................. 93  ARTICLE 26.    RULES AND REGULATIONS ..................................................................................................... 94  ARTICLE 27.    PERSONS BOUND ........................................................................................................................ 94  ARTICLE 28.    NOTICES ........................................................................................................................................ 95  ARTICLE 29.    PARTNERSHIP TENANT ............................................................................................................. 96  ARTICLE 30.    NO WAIVER; ENTIRE AGREEMENT ........................................................................................ 96  ARTICLE 31.    MISCELLANEOUS PROVISIONS ............................................................................................... 97  ARTICLE 32.    INABILITY TO PERFORM; SEVERABILITY .......................................................................... 105  ARTICLE 33.    INTENTIONALLY OMITTED .................................................................................................... 105  ARTICLE 34.    RENEWAL OPTIONS ................................................................................................................. 105                                                  - i -    NY 78267766v2 

 

ARTICLE 35.    RIGHT OF FIRST OFFER ........................................................................................................... 108  ARTICLE 36.    ADDITIONAL COVENANTS ..................................................................................................... 112  ARTICLE 37.    COUNTERPARTS ....................................................................................................................... 112  ARTICLE 38.    RIGHTS OF EXPANSION AND FIRST REFUSAL................................................................... 113  ARTICLE 39.    PARKING SPACES ..................................................................................................................... 117  ARTICLE 40.    ENERGY EFFICIENCY .............................................................................................................. 118    SCHEDULE 1 – Additional Provisions.................................................................................................................. S-1-1    EXHIBIT “A” – Floor Plans...................................................................................................................................... A-1  EXHIBIT “B” – Form of Commencement Date Agreement ..................................................................................... B-1  EXHIBIT “C” – Landlord’s Work ............................................................................................................................ C-1  EXHIBIT “C-1” – Landlord’s Additional Work .................................................................................................... C-1-1  EXHIBIT “D” – Description of Land ........................................................................................................................ D-1  EXHIBIT “E” – Cleaning Specifications .................................................................................................................. E-1  EXHIBIT “F” – Rules and Regulations ..................................................................................................................... F-1  EXHIBIT “G” – Base Building HVAC Specifications ............................................................................................. G-1   EXHIBIT “H-1” – Tenant’s Exterior Sign ............................................................................................................ H-1-1  EXHIBIT “H-2” – Signage Criteria....................................................................................................................... H-2-1  EXHIBIT “I” –  Form of Board SNDA ...................................................................................................................... I-1  EXHIBIT “J” – Form of Mortgagee SNDA ............................................................................................................... J-1  EXHIBIT “K” – Form of Subtenant SNDA .............................................................................................................. K-1  EXHIBIT “L” – Approved Contractor List ............................................................................................................... L-1  EXHIBIT “M” – Fire Stairs Specifications .............................................................................................................. M-1  EXHIBIT “N” – Telecom Riser Space ...................................................................................................................... N-1  EXHIBIT “O” – Form of Board Consent .................................................................................................................. O-1  EXHIBIT “P” – ROFR Space .................................................................................................................................... P-1  EXHIBIT “Q” – Quality Standards ........................................................................................................................... Q-1  EXHIBIT “R” – Competitor Firms ............................................................................................................................ R-1  EXHIBIT “S” – Amenity Space ................................................................................................................................ S-1  EXHIBIT “T” – Upper Floor Offer Space ................................................................................................................. T-1                                                      - ii -    NY 78267766v2 

 

                                                                                                                                      INDEX OF DEFINED TERMS   TERM                                                                                    SECTION    14th Floor Unit ................................................................................................................................. Exhibit I, Recitals  15th Floor Unit ................................................................................................................................. Exhibit I, Recitals  16th Floor Unit ................................................................................................................................. Exhibit I, Recitals  7-21 Condominium ........................................................................................................................... Exhibit I, Recitals  A/S Completion Period ......................................................................................................................................... 10.03  AAA ..................................................................................................................................................................... 11.05  Acceptance Notice ................................................................................................................................................ 35.02  Act ........................................................................................................................................................................ 40.01  Action Notice ........................................................................................................................................................ 31.17  Additional Offer Space Option ............................................................................................................................. 35.02  Additional Work Completion Date ......................................................................................................................... 2.02  Alterations .............................................................................................................................................................. 1.01  Alternate Tenant’s Contractor ................................................................................................................................ 5.01  Amenity Space ........................................................................................................................................................ 2.02  Amenity Space Changes ......................................................................................................................................... 2.02  Annual Environmental Performance Report ......................................................................................................... 40.02  Annual Statement ................................................................................................................................................. 19.04  Approved Contractor List ....................................................................................................................................... 5.01  Arbitration Notice ................................................................................................................................................. 11.05  Assignment/Sublet Notice .................................................................................................................................... 10.03  Audit ..................................................................................................................................................................... 19.04  Authorized Use ....................................................................................................................................................... 1.01  Available................................................................................................................................................................. 1.01  Base Electric Charge ............................................................................................................................................ 20.03  Base Operating Year ............................................................................................................................................... 1.01  Base Tax Amount ................................................................................................................................................... 1.01  Board ...................................................................................................................................................................... 1.01  Board SNDA ........................................................................................................................................................ 22.06  Building .................................................................................................................................................................. 1.01  Building Emissions Fine ....................................................................................................................................... 40.04  Building Insurance .................................................................................................................................................. 8.01  Building Systems .................................................................................................................................................... 1.01  Business Days ....................................................................................................................................................... 18.02  Business Hours ..................................................................................................................................................... 18.02  Common Charge ..................................................................................................................................................... 1.01  Common Expense ................................................................................................................................................... 1.01   Common Interest .................................................................................................................................................... 1.01  Comparable Buildings ............................................................................................................................................ 1.01  Concealed Work ................................................................................................................................................... 13.01  Condenser Water Notice ....................................................................................................................................... 18.01  Condominium ................................................................................................................................................... Recitals  Condominium Documents ...................................................................................................................................... 1.01  Construction Delay ................................................................................................................................................. 1.01  Construction Delay Commencement Date ............................................................................................................. 3.01  Construction Delay Notice ..................................................................................................................................... 3.01  Contiguous Remainder Space ................................................................................................................................. 1.01  Continued Occupancy Period ............................................................................................................................... 25.02  Continuous Period ................................................................................................................................................ 18.01  Contractor’s Estimate ............................................................................................................................................. 9.04  Contribution Balance .............................................................................................................................................. 2.05  Contribution Due Date ............................................................................................................................................ 2.05                                                 -iii-      NY 78267766v2 

 

Curing Notice ....................................................................................................................................................... 16.01  Damages Date ....................................................................................................................................................... 25.02  DAS ...................................................................................................................................................................... 18.07  Declaration ....................................................................................................................................................... Recitals  Decorative Changes ................................................................................................................................................ 5.01  Delay Inception Date .............................................................................................................................................. 1.01  Delivering Party .................................................................................................................................................... 11.05  Delivery Date .......................................................................................................................................................... 1.01  Demised Premises................................................................................................................................................... 1.01  Demised Premises Emissions Limit ..................................................................................................................... 40.02  Designated Broker .................................................................................................................................................. 1.01  Desk Sharing Entity .............................................................................................................................................. 10.02  Desk Space User ................................................................................................................................................... 10.02  Determination Date............................................................................................................................................... 34.03  Dining Equipment................................................................................................................................................... 4.04  Dining Facility ........................................................................................................................................................ 4.04  Dining Facility Location Requirements .................................................................................................................. 4.04  Dining Use .............................................................................................................................................................. 4.04  Disabilities Act ....................................................................................................................................................... 1.01  Dispute Threshold................................................................................................................................................. 19.04  Effective Date .................................................................................................................................................... Preface  Electric Inclusion Factor ....................................................................................................................................... 20.03  Electric Rate ......................................................................................................................................................... 20.03  Electricity Additional Rent ................................................................................................................................... 20.02  Electricity Discontinuance Event ......................................................................................................................... 20.03  Eligible Reimbursement Period .............................................................................................................................. 2.05  EOD Cure Date .............................................................................................................................................. 2.05, 2.05  Estimate Statement ............................................................................................................................................... 19.04  Estimated Payment ............................................................................................................................................... 19.04  Estoppel Certificate .............................................................................................................................................. 23.01  Events of Default .................................................................................................................................................. 15.01  Excavation Party ..................................................................................................................................................... 7.05  Excused Rent .......................................................................................................................................................... 3.01  Exercise Date ........................................................................................................................................................ 34.01  Existing Capacity .................................................................................................................................................. 20.01  Existing Lender ...................................................................................................................................................... 1.01  Expansion Notice Date ........................................................................................................................................... 1.01  Expansion Outside Exercise Cure Date ................................................................................................................ 38.01  Expansion Space MVR ......................................................................................................................................... 38.01  Expansion Space MVR Notice ............................................................................................................................. 38.01  Expedited Arbitration ........................................................................................................................................... 11.05  Expiration Date ....................................................................................................................................................... 1.01  Extension Notice..................................................................................................................................................... 9.03  Extra Rubbish Removal ........................................................................................................................................ 18.01  Final Determination .............................................................................................................................................. 34.03  Final Sign Plan ..................................................................................................................................................... 31.04  Fire Stair ................................................................................................................................................................. 5.07  First Lower Floor Offer Space ................................................................................................................................ 1.01  First Offer Period .................................................................................................................................................... 1.01  First Refusal Lease ............................................................................................................................................... 38.02  First Refusal Notice .............................................................................................................................................. 38.02  First Refusal Premises .......................................................................................................................................... 38.02  First Refusal Right ................................................................................................................................................ 38.02  First Renewal Option ............................................................................................................................................ 34.01  First Renewal Term .............................................................................................................................................. 34.01                                                  -iv-    NY 78267766v2 

 

Fixed Rent .............................................................................................................................................................. 1.01  Force Majeure ......................................................................................................................................................... 1.01  FTI ........................................................................................................................................................................ 34.01  FTI Units .......................................................................................................................................... Exhibit I, Recitals  Generator .............................................................................................................................................................. 18.01  Hazardous Materials ............................................................................................................................................... 7.02  Holidays ................................................................................................................................................................ 18.02  HVAC ..................................................................................................................................................................... 6.01  Incidental Items ...................................................................................................................................................... 5.06  Indemnified Party ................................................................................................................................................. 11.03  Initial Compliance Period ..................................................................................................................................... 40.01  Insurance Boards .................................................................................................................................................... 1.01  Interest Rate .......................................................................................................................................................... 16.01  Interruption ............................................................................................................................................................. 6.02  Labor Costs ........................................................................................................................................................... 19.02  Land ........................................................................................................................................................................ 1.01  Landlord ............................................................................................................................................................ Preface  Landlord Change .................................................................................................................................................. 13.01  Landlord Change Terms ....................................................................................................................................... 13.01  Landlord Owned Space ........................................................................................................................................ 10.04  Landlord’s Actual Cost Notice ............................................................................................................................... 5.06  Landlord’s Additional Work................................................................................................................................... 2.02  Landlord’s Consultant .......................................................................................................................................... 20.03  Landlord’s Contribution ......................................................................................................................................... 2.05  Landlord’s Determination ..................................................................................................................................... 34.03  Landlord’s Electricity Cost ................................................................................................................................... 20.02  Landlord’s Restoration Work ................................................................................................................................. 9.01  Landlord’s Space Planning Contribution ................................................................................................................ 2.06  Landlord’s Work..................................................................................................................................................... 2.02  Landlord’s Work Termination Option Date ........................................................................................................... 2.03  Large Block Transaction......................................................................................................................................... 1.01  Latent Defects ......................................................................................................................................................... 2.02  Lease .................................................................................................................................................................. Preface  Lease Term ............................................................................................................................................................. 1.01  Legal Requirements ................................................................................................................................................ 1.01  Liability Interruption .............................................................................................................................................. 6.02  Market Value Rent................................................................................................................................................ 34.03  Memorandum Termination Agreement ................................................................................................................ 31.06  Mortgage................................................................................................................................................................. 1.01  Mortgagee ............................................................................................................................................................... 1.01  MVR Notice ......................................................................................................................................................... 34.03  MVR Objection Notice ......................................................................................................................................... 34.03  Network .................................................................................................................................................................. 5.08  Notice ................................................................................................................................................................... 28.01  Objection to Action Notice ................................................................................................................................... 31.17  Occupancy Conditions .......................................................................................................................................... 35.01  Occupancy Payment ............................................................................................................................................. 25.02  Occupant ................................................................................................................................................................. 1.01  OFAC ................................................................................................................................................................... 31.18  Offer Availability Period ........................................................................................................................................ 1.01  Offer Notice .......................................................................................................................................................... 35.01  Offer Space ............................................................................................................................................................. 1.01  Offer Space Holdover Proceeding Notice............................................................................................................. 35.04  Offer Space Inclusion Date ................................................................................................................................... 35.03  Offer Space MVR ................................................................................................................................................. 35.07  Offer Space MVR Threshold .................................................................................................................................. 1.01                                                  -v-    NY 78267766v2 

 

Offer Space Option ............................................................................................................................................... 35.02  Operating Dispute Notice ..................................................................................................................................... 19.04  Operating Expense Payment ................................................................................................................................. 19.04  Operating Expenses .............................................................................................................................................. 19.02  Operating Statement ............................................................................................................................................. 19.02  Operating Year ..................................................................................................................................................... 19.02  Outside Exercise Cure Date .................................................................................................................................. 35.02  Outside Exercise Date .......................................................................................................................................... 35.02  Overlandlord ........................................................................................................................................................... 1.01  Overtime Periods .................................................................................................................................................. 18.02  Owner ..................................................................................................................................................................... 1.01  Ownership and Transfer Statement....................................................................................................................... 10.01  Parking Election Notice ........................................................................................................................................ 39.01  Parking Fee ........................................................................................................................................................... 39.02  Parking Space ....................................................................................................................................................... 39.01  Partnership Tenant ................................................................................................................................................ 29.01  Penalty Commencement Date ................................................................................................................................. 2.03  Persons Within Landlord’s Control ........................................................................................................................ 1.01  Persons Within Tenant’s Control ............................................................................................................................ 1.01  Prime Rate ............................................................................................................................................................ 16.01  Profit ..................................................................................................................................................................... 10.07  Prohibited Person .................................................................................................................................................. 31.18  Prospective LOI Terms ......................................................................................................................................... 38.02  Prospective Tenant ............................................................................................................................................... 38.01  Public Utility ........................................................................................................................................................ 20.02  Punch-List Items ..................................................................................................................................................... 1.01  Recapture Date ..................................................................................................................................................... 10.03  Recapture Notice .................................................................................................................................................. 10.03  Recapture Offer Notice ......................................................................................................................................... 10.03  Recapture Option .................................................................................................................................................. 10.03  Recapture Space ................................................................................................................................................... 10.03  Recurring Additional Rent ...................................................................................................................................... 1.01  Register’s Office ............................................................................................................................................... Recitals  Related Entity ....................................................................................................................................................... 10.02  Renewal Notice .................................................................................................................................................... 34.01  Renewal Options................................................................................................................................................... 34.01  Renewal Terms ..................................................................................................................................................... 34.01  Rent Commencement Date ..................................................................................................................................... 3.01  Rent Concession Period .......................................................................................................................................... 3.01  Rentable Square Feet .............................................................................................................................................. 1.01  Repairs .................................................................................................................................................................... 1.01  Restroom Delivery Date ......................................................................................................................................... 2.02  ROFO Conditions ................................................................................................................................................. 35.01  ROFR Exercise Outside Date ............................................................................................................................... 38.02  ROFR Inclusion Outside Date .............................................................................................................................. 38.03  ROFR MVR .......................................................................................................................................................... 38.02  ROFR Outside Exercise Cure Date ...................................................................................................................... 38.02  ROFR Space ......................................................................................................................................................... 38.02  ROFR Space Holdover Proceeding Notice ........................................................................................................... 38.03  Roof ........................................................................................................................................................................ 5.09  Rules and Regulations .......................................................................................................................................... 26.01  Satellite Antenna..................................................................................................................................................... 5.09  Second Lower Floor Offer Space ........................................................................................................................... 1.01  Second Offer Period ............................................................................................................................................... 1.01  Second Renewal Option ....................................................................................................................................... 34.01                                                  -vi-    NY 78267766v2 

 

Second Renewal Term .......................................................................................................................................... 34.01  Secure Areas ......................................................................................................................................................... 13.03  Secure Items ......................................................................................................................................................... 13.03  Service Provider ................................................................................................................................................... 10.02  Signs ..................................................................................................................................................................... 31.04  Specialty Alterations ............................................................................................................................................... 5.06  Specialty Alterations Notice ................................................................................................................................... 5.06  Street Entrance Sign ............................................................................................................................................. 31.04  Submeter ............................................................................................................................................................... 20.02  Substantial Portion .................................................................................................................................................. 6.02  Subtenant SNDA .................................................................................................................................................. 10.06  Successor Entity ................................................................................................................................................... 10.02  Supplemental Air-Conditioning System ............................................................................................................... 18.01  Surrender Date ...................................................................................................................................................... 25.01  Target Commencement Date .................................................................................................................................. 2.01  Target Offer Space Inclusion Date ....................................................................................................................... 35.01  Tax Statement ....................................................................................................................................................... 19.03  Tax Year ............................................................................................................................................................... 19.02  Taxes .................................................................................................................................................................... 19.02  Taxing Authority .................................................................................................................................................. 19.02  Tenant ................................................................................................................................................................ Preface  Tenant Carbon Credits .......................................................................................................................................... 40.03  Tenant Electricity ................................................................................................................................................. 20.02  Tenant Indemnified Party ..................................................................................................................................... 11.03  Tenant Necessitated Repairs ................................................................................................................................... 6.01  Tenant’s Additional Work Punch List .................................................................................................................... 2.02  Tenant’s Communications Equipment .................................................................................................................... 5.08  Tenant’s Consultant .............................................................................................................................................. 20.03  Tenant’s Contractors ............................................................................................................................................... 5.01  Tenant’s Delay ........................................................................................................................................................ 2.03  Tenant’s Determination ........................................................................................................................................ 34.03  Tenant’s Initial Improvements ................................................................................................................................ 1.01  Tenant’s Initial Installations ................................................................................................................................... 5.02  Tenant’s Installations Delay ................................................................................................................................... 5.02  Tenant’s Movable Property .................................................................................................................................... 5.06  Tenant’s Operating Share ....................................................................................................................................... 1.01  Tenant’s Parking User .......................................................................................................................................... 39.04  Tenant’s Plans ........................................................................................................................................................ 5.02  Tenant’s Punch List Notice .................................................................................................................................... 2.02  Tenant’s Restoration Work ..................................................................................................................................... 9.01  Tenant’s Security System ....................................................................................................................................... 5.02  Tenant’s Tax Payment .......................................................................................................................................... 19.03  Tenant’s Tax Share ................................................................................................................................................. 1.01  Termination Option Date ........................................................................................................................................ 2.03  Termination Option Notice ..................................................................................................................................... 2.03  Termination Option Period ..................................................................................................................................... 2.03  Third Arbitrator .................................................................................................................................................... 34.03  Third Offer Period .................................................................................................................................................. 1.01  Unamortized Alterations Costs ............................................................................................................................... 1.01  Underlying Lease .................................................................................................................................................... 1.01  Union Minimum Hours ........................................................................................................................................ 18.01  Unit ......................................................................................................................................................................... 1.01  Untenantable ........................................................................................................................................................... 6.02  Upper Floor Offer Space ........................................................................................................................................ 1.01  Vacant Possession................................................................................................................................................. 38.01                                                  -vii-    NY 78267766v2 

 

VAV ....................................................................................................................................................................... 6.01  Wi-Fi ...................................................................................................................................................................... 5.08                                                  -viii-    NY 78267766v2 

 

                                                                                                           AMENDED AND RESTATED LEASE (this “Lease”) made as of this 26 day of October and effective as  of  the 19th day  of August 2020  (the  “Effective  Date”) by  and  between 1166  LLC,  a  Delaware  limited  liability  company having an office c/o Edward J. Minskoff Equities, Inc., 1325 Avenue of the Americas, 23rd Floor, New  York,  New  York  10019  (hereinafter  referred  to  as  “Landlord”), and FTI  CONSULTING,  INC.,  a  Maryland  corporation, having an office at 16701 Melford Blvd., Suite 200, Bowie, Maryland 20715  (hereinafter referred to as  “Tenant”). This Lease amends, restates and supersedes, in its entirety, that certain Lease, dated as of August 19,  2020, between Landlord and Tenant.                                                  W I T N E S S E T H :          WHEREAS, The   Building and all other property, real, personal or mixed, intended for use in connection  therewith  was  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 the 1166 A of A Condominium (the “Condominium”) dated June 5, 1978, and  recorded in the Register’s Office of the City of New York, New York County (the “Register’s Office”) in Reel 441  at page 257, as amended by Amendment No. 1 to Declaration of the Condominium dated February 5, 1980, and  recorded  in  the  Register’s  Office  in  Reel  521  at  Page  1881,  and  further  amended  by  Amendment  No.  2  to  Declaration of the Condominium dated as of June 15, 1984, and recorded in the Register’s Office (on July 15, 1986)  in Reel 1088 at Page 1909, and further amended by Amendment No. 3 to Declaration dated as of August 3, 1999,  and  recorded  in  the  Register’s  Office  in  Reel  2999,  Page  1168,  and  further  amended  by  Amendment  No.  4  to  Declaration  dated  as  of  August  3,  1999,  and  recorded  in  the  Register’s  Office  in  Reel  2999,  Page  1217,  and  as  further  amended  by  Amendment No.  5  to  Declaration  dated  as  of  July  18,  2016,  and  recorded  in  the  Register’s  Office  under  CRFN  2016000251524  (together  with  the  by-laws  attached  thereto,  as  said  Declaration  of  Condominium and by-laws may hereafter be amended, the “Declaration”);          WHEREAS, Landlord is the fee owner of the condominium units designated in the Declaration as Upper  Cellar  A  and  the  7th,  8th,  9th,  10th,  11th,  12th,  14th,  15th,  16th,  17th,  18th,  19th,  20th  and  21st  floors  in  the  Building (and designated as Tax Lots 1001, 1010, 1011, 1012, 1013, 1014, 1015, 1016, 1017, 1018, 1019, 1020,  1021,  1022  and  1023  respectively  in  Block  1261  of  the  Tax  Map  of  the  City  of  New  York)  and  the  associated  interests in the Common Elements (which units and associated interests in the Common Elements are hereinafter  collectively referred to as the “7-21 Condominium”);          WHEREAS, Landlord is the fee owner of (a) the condominium unit designated in the Declaration as the  14th Floor in the Building, and designated as Tax Lot 1016 in Block 1261 of the Tax Map of the City of New York,  and (b) an undivided 2.2156% interest in the Common Elements (as defined in the Declaration) attributable to the  14th Floor in the Building (the property described in clauses (a) and (b) above being referred to herein as the “14th  Floor Unit”);          WHEREAS, Landlord is the owner of (a) the condominium unit designated in the Declaration as the 15th  Floor in the Building, and designated as Tax Lot 1017 in Block 1261 of the Tax Map of the City of New York, and  (b) an undivided 2.2156% interest in the Common Elements (as defined in the Declaration) attributable to the 15th  Floor in the Building (the property described in clauses (a) and (b) above being referred to herein as the “15th Floor  Unit”);          WHEREAS, Landlord is the owner of (a) the condominium unit designated in the Declaration as the 16th  Floor in the Building, and designated as Tax Lot 1018 in Block 1261 of the Tax Map of the City of New York and  (b) an undivided 2.2158% interest in the Common Elements (as defined in the Declaration) attributable to the 16th  Floor in the Building (the property described in clauses (a) and (b) above being referred to herein as the “16th Floor  Unit”; and together with the 14th Floor Unit and the 15th Floor Unit, the “FTI Units”);          WHEREAS, the FTI Units are part of the 7-21 Condominium and constitute the Demised Premises; and          WHEREAS,  Landlord  wishes  to  demise  and  let  unto  Tenant,  and  Tenant  wishes  to  hire  and  take  from  Landlord, certain premises in the 7-21 Condominium on the terms and subject to the conditions set forth herein;                                                        NY 78267766v2 

 

       NOW   THEREFORE,  in  consideration  of  the  premises  and  other  good  and  valuable  consideration,  the  mutual  receipt  and  legal  sufficiency  is  hereby  conclusively  acknowledged,  Landlord  and  Tenant  hereby  agree  as  follows:                                             ARTICLE 1.                                                                                DEFINED TERMS; DEMISE OF PREMISES          Section 1.01   For the purposes of this Lease (including all of the schedules, riders and exhibits, if any,  annexed to this Lease), the terms set forth below shall have the definitions that immediately follow such terms, and  such definitions are hereby incorporated into this Lease wherever used:                  Alterations – “Alterations”  shall  mean  and  include  all  installations,  changes,  alterations,  restorations,  renovations, replacements,  additions,  and  improvements  made  in  or  to  the Demised  Premises  or  the  Building by or on behalf of Tenant, and shall include Tenant’s Initial Improvements.                  Authorized Use – “Authorized Use” shall be for executive, administrative and/or general business  offices  and  uses  customarily  incidental  thereto, which  incidental  uses  may  include:  typical  office  pantries  and  vending  machines  for  the  exclusive  use  of the employees, contract  workers,  vendors  and visitors of  Tenant,  permitted subtenants and Desk Sharing Entities; a warming kitchen; conference rooms and board rooms; mailroom  and  messenger  facilities,  but,  in  each  case,  subject  to  the  provisions  of  this  Lease  and  all  applicable  Legal  Requirements (including the certificate of occupancy for the Building), as well as the approval of any Alterations as  Tenant shall desire to perform in order to effect any of the foregoing uses that require such approval pursuant to the  provisions of Article 5 hereof.                    Available – “Available” shall have the meaning set forth on Schedule 1-4 hereof.                  Base Operating Year – “Base Operating Year” shall mean the Operating Expenses with respect  to calendar year 2021.                    Base  Tax  Amount – “Base  Tax  Amount”  shall  mean  the  amount  of  Taxes with  respect  to  the  fiscal year commencing July 1, 2021, and ending June 30, 2022.                  Board – “Board” shall mean the Board of Managers of the Condominium.                  Building – “Building” shall mean and include the structure and other improvements constructed  or as may in the future be constructed on the Land, known by the address “1166 Avenue of the Americas, New  York, New York.”                  Building  Systems – “Building  Systems”  shall  mean and include  the  base  building  mechanical,  electrical, sanitary, HVAC, wireless DAS, elevator, plumbing, fire protection, life-safety and other service systems  of the Building, now or hereafter installed in the Building by Landlord or the Board, but shall not include any air- conditioning equipment installed by Tenant in the Demised Premises, other installations made by Tenant or Tenant’s  fixtures or appliances.                  Common  Charge  – “Common  Charge”  shall  have  the  meaning  ascribed  to  such term  in  the  Declaration.                  Common  Expense  – “Common  Expense”  shall  have  the  meaning  ascribed  to  such  term  in  the  Declaration.                  Common  Interest – “Common  Interest”  shall  have  the  meaning  ascribed  to  such  term  in  the  Declaration.                                                   -2-    NY 78267766v2 

 

               Comparable Buildings – “Comparable Buildings” shall mean first-class, non-institutional, office  buildings in midtown Manhattan.                   Condominium  Documents  – “Condominium  Documents”  shall  mean  the  Declaration  and  the  Rules and Regulations.                  Construction  Delay – “Construction  Delay”  shall  have  the  meaning  set  forth  on  Schedule  1-1  attached hereto.                  Contiguous Remainder Space – “Contiguous Remainder Space” shall have the meaning set forth  on Schedule 1-4 attached hereto.                  Delivery  Date – “Delivery  Date”  shall  mean  the  date  that  Landlord’s  Work  is  substantially  completed.                   Delay Inception Date – “Delay Inception Date” shall mean, in each applicable instance in this  Lease where such term is expressly provided, the date on which an actual delay in Tenant’s performance of Tenant’s  Initial Improvements or Tenant’s occupancy of the Demised Premises for the ordinary conduct of Tenant’s business  occurs solely as a result of the situation (i.e., failure by Landlord to perform or a Construction Delay) set forth in the  applicable instance; provided, however, that no such delay shall be deemed to have occurred prior to the date that is  the earlier  to occur of the date on which (x) Tenant delivers a notice to Landlord stating that Tenant’s performance  of  Tenant’s  Initial  Improvements  or  Tenant’s  occupancy  of  the  Demised  Premises  for  the  ordinary  conduct  of  Tenant’s business is actually so delayed, which notice may be sent via e-mail to JSussman@ejmequities.com and  BMcGrath@ejmequities.com, or any other e-mail address provided by Landlord to Tenant from time to time (the  “Delay Inception Notice”), and (y) Landlord obtains actual knowledge of the delay; provided that with respect to  clause (y) above, in no event shall such date be more than five (5) Business Days prior to Landlord’s receipt of the  Delay Inception Notice.                   Demised Premises – “Demised Premises” shall mean, collectively, the entire rentable area of the  FTI Units, as shown on the shaded portion of the plan annexed hereto as Exhibit “A” and made a part hereof.                  Designated Broker – “Designated Broker” shall collectively mean Colliers International NY LLC  and JLL, Inc.                  Disabilities  Act – “Disabilities  Act”  shall  mean,  collectively,  The Americans  with  Disabilities  Act  of  1990,  Public  Law  101-336,  42  U.S.C.  § 12101  et  seq.  and  Local  Law  58  of  1988,  each  as  modified  and  supplemented from time to time, together with all regulations promulgated in connection therewith.                  Existing Lender – “Existing Lender” shall mean Wells Fargo Bank, National Association.                  Expansion Notice Date – “Expansion Notice Date” shall have the meaning set forth on Schedule  1-5 attached hereto.                  Expiration Date – “Expiration Date” shall mean the date set forth in Subsection 2.01B below, as  same may be extended pursuant to the terms of this Lease.                  First Lower Floor Offer Space – “First Lower Floor Offer Space” shall have the meaning set  forth on Schedule 1-5 attached hereto.                  First  Offer  Period – “First  Offer  Period”  shall have  the  meaning  set  forth  on  Schedule 1-5  attached hereto.                  Fixed  Rent – “Fixed  Rent” shall  mean  an  amount  equal to  approximately  $145,000,000  in  the  aggregate over the Lease Term (excluding certain Lease incentives), payable in the annual and monthly amounts set  forth on Schedule 1-2 attached hereto and made a part hereof.                                                  -3-    NY 78267766v2 

 

               Force Majeure – “Force Majeure” shall mean any cause beyond Landlord’s or Tenant’s (as the  case  may  be)  reasonable control,  including  governmental  regulation,  governmental  restriction,  governmental  preemption in connection with a national emergency, strike, labor dispute not occasioned by a breach of contract by  Landlord or Tenant (as the case may be), riot, inability to obtain labor or materials for any reason beyond Landlord’s  or  Tenant’s  (as  the  case  may  be)  reasonable  control,  acts  of  God,  war,  fire,  bioterrorism,  terrorist  acts  or  other  casualty,  any  actual  or  threatened  health  emergency,  including,  but  not  limited to,  epidemics,  pandemic,  famine,  disease, plague, quarantine, and other health risk, including, but not limited, to health risks declared or recognized  by  the  Centers  for  Disease  Control,  the  World  Health  Organization,  any  governmental  authority  or other similar  body having  or  asserting  jurisdiction  over  the  Land,  the  Building,  and/or  the  Demised  Premises, and  other  like  circumstances.  The inability to obtain money or the non-payment of money shall not be deemed to be (or to have  caused) an event of Force Majeure.                  Include and Including – “include” and “including” shall each be construed as if followed by the  phrase “without being limited to” or “without limitation”.                  Insurance  Boards – “Insurance  Boards”  shall  mean  and  include  the  National  Board  of  Fire  Underwriters and the Insurance Services Office, and any other local or national body having similar jurisdiction or  establishing insurance premium rates.                  Land – “Land” shall mean the real property described on Exhibit “D” annexed hereto, including  all plazas, sidewalks, curbs and appurtenances thereto.                  Large  Block  Transaction – “Large  Block  Transaction” shall have  the  meaning  set  forth  on  Schedule 1-5 attached hereto.                   Lease  Term – “Lease  Term”  shall  mean  the  period  of  years  (and/or  portions  thereof)  that  this  Lease  shall  be  in  effect,  commencing  on  the  Commencement  Date  and  ending  on  the  Expiration  Date,  unless  extended or sooner terminated as provided in this Lease or by law.                  Legal Requirements – “Legal Requirements” shall mean and include all current and future laws,  orders, ordinances, directions, notices, rules and regulations of the federal government and of any state, county, city,  borough and municipality, and of any division, agency, subdivision, bureau, office, commission, board, authority  and department thereof, and of any public officer or official and of any quasi-governmental officials and authorities  having  or  asserting  jurisdiction  over  the  Land,  the  Building  and/or  the  Demised  Premises,  including any  requirements  imposed  by  the  Occupational  Safety  and  Health  Administration, and  the  New  York  City  Climate  Mobilization Act of 2019, NYC Local Laws No. 5 of 1973, No. 16 of 1984 and No. 58 of 1988, each as amended  from time to time, and all Legal Requirements then in effect relating to asbestos and to access for the handicapped or  disabled, and the Disabilities Act.                  Mortgage – “Mortgage” shall mean any existing or future mortgage and/or security deed affecting  any of the Units then constituting the Demised Premises, alone or with other property, as the same may from time to  time be amended, modified, renewed, consolidated, substituted, spread, added to, extended and/or replaced.                  Mortgagee – “Mortgagee” shall mean the mortgagee under, and/or the holder of, any Mortgage.                  Occupant – “Occupant” shall mean any Owner, whether or not occupying such Unit or a portion  thereof, and any person lawfully occupying a Unit pursuant to a lease, sublease or license granted by the Owner of  such Unit or any person claiming under such Owner.                  Offer  Availability  Period – “Offer Availability  Period”  shall  have  the  meaning  set  forth  on  Schedule 1-4 attached hereto.                  Offer Space – “Offer Space” shall have the meaning set forth on Schedule 1-4 attached hereto.                                                   -4-    NY 78267766v2 

 

               Offer Space MVR Threshold – “Offer Space MVR Threshold” shall have the meaning set forth  on Schedule 1-4 attached hereto.                  Overlandlord – “Overlandlord” shall mean the landlord under any Underlying Lease.                  Owner – “Owner” shall mean a person owning an interest in a Unit in fee simple absolute and the  Common Interest appurtenant thereto.                  Persons  Within  Landlord’s  Control – “Persons  Within  Landlord’s  Control”  shall  mean  and  include Landlord, all of Landlord’s principals, officers, agents, contractors, servants and employees, but shall not  include  any  tenants,  subtenants,  licensees  or  other  occupants  in  the  Building or  any of  their  agents,  servants,  employees, visitors or contractors.                  Persons Within Tenant’s Control – “Persons Within Tenant’s Control” shall mean and include  Tenant, all of Tenant’s subtenants and assignees, and all of their respective principals, officers, agents, contractors,  servants,  employees,  licensees,  guests  and  invitees but  expressly  excluding  Landlord  and  any  Persons  Within  Landlord’s Control.                  Punch-List  Items – “Punch-List  Items”  shall  mean minor  details  or  adjustments of  Landlord’s  Work or Landlord’s Additional Work, as applicable, which shall not materially interfere with Tenant’s performance  of Tenant’s Initial Improvements in the Demised Premises or Tenant’s use and occupancy of the Demised Premises.                  Recurring Additional Rent – “Recurring Additional Rent” shall mean all additional rent payable  by Tenant pursuant to Article 19 of this Lease.                  Rentable Square Feet – “Rentable Square Feet” shall refer to the number of rentable square feet  in the Demised Premises.   For the purposes of this Lease, Landlord and Tenant agree that (i) each of the 14th Floor  Unit, the 15th Floor Unit and the 16th Floor Unit shall be deemed to contain 40,240 rentable square feet, (ii) the FTI  Units shall be deemed to be 120,720 square feet in the aggregate, and (ii) the 7-21 Condominium shall be deemed to  contain 556,370 rentable square feet in the aggregate.                  Repairs – “Repairs” shall mean and include repairs, restorations and replacements.                  Second Lower Floor Offer Space – “Second Lower Floor Offer Space” shall have the meaning  set forth on Schedule 1-5 attached hereto.                  Second Offer Period – “Second Offer Period” shall have the meaning set forth on Schedule 1-5  attached hereto.                  Structural – “structural”  shall  mean  any  Alteration  involving  or  affecting:  (1)  the  roof  or  foundation of the Building, (2) any floor slab and/or ceiling slabs, the exterior walls of the Building (other than the  interior surface of such exterior walls) and any load bearing columns or structural elements of the Building, (3) any  Building  Systems  outside  of  the  Demised  Premises,  and  any  Building  Systems  serving  any  other  tenants  at  the  Building or any parts of the Building outside of the Demised Premises, (4) any Common Elements of the Building,  (5) any exterior glass, exterior windows, window seals and gaskets, and window frames in the Demised Premises or  (6) any boiler or pressure vessel.                  substantially complete (or substantially completed) – “substantially complete” or “substantially  completed” shall mean Landlord’s Work or Landlord’s Additional Work, as applicable, has been completed with the  exception  of  any  Punch-List  Items  and any  work  that,  under  good  construction  practice,  is  dependent  on  the  completion of Tenant’s Initial Improvements (or some portion thereof).                  Tenant’s Delay - “Tenant’s Delay” or “Tenant Delay” shall mean, whether or not in connection  with Landlord’s Work or Landlord’s Additional Work, an act or omission by Tenant or any Person Within Tenant’s  Control, that in each case, actually delays Landlord in the performance of any of Landlord’s obligations under this                                                  -5-    NY 78267766v2 

 

Lease,  including Landlord’s  Work,  Landlord’s  Additional  Work,  Landlord’s  construction  of  the  Amenity  Space,  performance of Amenity Space Renovations, or performance of Landlord’s obligations under Articles 6, 7 and 18 of  this Lease; it being agreed that solely in connection with Landlord’s Work and Landlord’s Additional Work, if a  Tenant’s Delay occurs, Landlord shall give Tenant notice thereof specifying in reasonable detail the nature of the  Tenant’s Delay (provided that no such Tenant’s Delay shall be deemed to have occurred prior to the date that is the  later to occur of the date on which (x) Landlord delivers notice to Tenant of such delay, which notice may be sent  via e-mail to each of the following addresses: chuck.cerria@fticonsulting.com; Daniel.johnson@fticonsulting.com;  William.johnson@turntown.com; and sheena.gohil@colliers.com, or any other e-mail address provided by Tenant to  Landlord from time to time, and (y) Tenant obtains actual knowledge of the delay; provided that with respect to  clause  (y)  above,  in  no  event  shall  such  date  be  more  than  five  (5)  Business  Days  prior  to Tenant’s  receipt  of  Landlord’s notice as set forth above); provided, however, that in the event that (1) there is more than one (1) factor  contributing to such delay, only the portion of such delay attributable solely to an act or omission by Tenant or any  Person  Within  Tenant’s  Control  shall  constitute  a  Tenant’s  Delay  and  (2) there  is  a  fully  overlapping  delay  attributable to a cause other than an act or omission of Tenant or any Person Within Tenant’s Control, there shall be  deemed to be no Tenant’s Delay during any period in which the Landlord obligation could not proceed even in the  absence of an act or omission by Tenant or Persons Within Tenant’s Control.                  Tenant’s Initial Improvements – “Tenant’s Initial Improvements” shall mean such work (if any)  as shall be performed by Tenant or Persons Within Tenant’s Control to prepare the Demised Premises for Tenant’s  initial occupancy thereof.                  Tenant’s Operating Share – “Tenant’s Operating Share” shall mean 21.6978%, for so long as  Landlord shall own all of the 7-21 Condominium.  If a portion or portions of the 7-21 Condominium (but not all of  the 7-21 Condominium) shall be sold, transferred or conveyed, or if Landlord shall enlarge the rentable area of the  7-21 Condominium by acquisition, construction of additional rentable area on the Land or in the Building, or by any  other means, then Tenant’s Operating Share shall be changed to that percentage which shall be equal to a fraction,  the  numerator  of  which  shall  be  the  Rentable  Square  Feet,  and  the denominator  of  which  shall  be  the  aggregate  rentable square feet of space in that portion of the 7-21 Condominium owned by Landlord at such time (and from  time to time) including such additional rentable area, as reasonably determined by Landlord’s architect (provided  that all such determinations shall be made in a manner consistent with the square footages and percentage shares  applicable to the 7-21 Condominium and the Demised Premises on the date hereof).                   Tenant’s Tax Share – “Tenant’s Tax Share” shall mean 100% for each of the 14th Floor Unit, the  15th  Floor  Unit,  and  the  16th  Floor  Unit,  respectively  (it  being  agreed  that  each  separate  floor  in  the  7-21  Condominium is its own separate tax lot; and Landlord agrees not to seek or consent to any merger of each of the  separate tax lots constituting the Units that comprise the Demised Premises during the Lease Term for so long as  such Unit(s) comprise the Demised Premises), for so long as the Demised Premises shall comprise the entirety of  each of the 14th Floor Unit, the 15th Floor Unit, and the 16th Floor Unit, respectively.  If, however, the separate tax  lots constituting the Demised Premises as of the date hereof are merged without Landlord seeking or consenting  thereto,  then  Tenant’s  Tax  Share  shall  be  changed  to  that percentage  which  shall  be  equal  to  a  fraction,  the  numerator of which shall be the Rentable Square Feet, and the denominator of which shall be the aggregate rentable  square  feet  of  space  in  the  condominium  unit(s)  in  which  the  Demised  Premises  are  then  located, as  reasonably  determined by Landlord’s architect (provided that all such determinations shall be made in a manner consistent with  the square footages and percentage shares applicable to the 7-21 Condominium and the Demised Premises on the  date hereof).                  Third  Offer  Period – “Third  Offer  Period” shall  have  the  meaning  set  forth  on  Schedule 1-4  attached hereto.                  Unamortized Alterations Costs – “Unamortized Alterations Costs” shall mean, in respect of any  Alterations performed at the Demised Premises (including, without limitation, Tenant’s Initial Improvements (less  the amount of Landlord’s Contribution)), the amount of the aggregate costs incurred for such Alterations that remain  unamortized as of the effective date of the applicable assignment/subletting, assuming that the aggregate of such  costs are amortized, in equal monthly installments, with interest calculated at the Interest Rate, over a  ten (10) year  period  commencing from  the  date(s)  that  the  Alteration(s)  is/are  substantially  completed  (prorated  on  a  rentable  square foot basis if the subletting is for less than all of the Demised Premises).                                                  -6-    NY 78267766v2 

 

               Underlying Lease – “Underlying Lease” shall mean any present or future ground or overriding or  underlying lease affecting the Land, the Building and/or the Demised Premises, as the same may from time to time  be amended, modified, renewed, extended and/or replaced.                  Unit – “Unit” shall mean a condominium unit in the Condominium.                   Upper Floor  Offer  Space – “Upper Floor  Offer  Space” shall  have  the  meaning  set  forth  on  Schedule 1-5 attached hereto.          Section 1.02   Landlord hereby leases to Tenant, and Tenant hereby hires from Landlord, the Demised  Premises, together with the right to use and access, in common with others, such portions of the Land, the 7-21  Condominium, the Condominium and the Building as are otherwise appurtenant to the 14th Floor Unit, the 15th  Floor Unit, and the 16th Floor Unit, and the Common Elements for the Lease Term, and for the Fixed Rent and  additional  rent  herein  reserved,  together  with  and  subject  to  all  of  the  covenants,  agreements,  terms,  conditions,  rights, limitations, reservations and provisions hereinafter set forth.                                             ARTICLE 2.                                                             COMMENCEMENT OF LEASE TERM; LANDLORD’S WORK & CONTRIBUTION          Section 2.01                     A.     The term of this Lease shall commence on date that is the latest to occur of the following  (such date, the “Commencement Date”): (i) the execution and delivery of this Lease by both Landlord and Tenant,  (ii) the date that the Board shall have consented (or shall be deemed to have consented) to this Lease, pursuant to the  form of Board Consent attached hereto as Exhibit “O” (the “Board Consent”), (iii) the date on which Landlord shall  deliver to Tenant the Board SNDA, (iv) the date on which Landlord shall deliver to Tenant the Mortgagee SNDA,  and (v) the date on which Landlord shall deliver vacant possession of the Demised Premises to Tenant, free and  clear of all tenancies and occupancies, with Landlord’s Work substantially completed. The parties estimate that the  Commencement Date shall occur on or about April 1, 2021 (the “Target Commencement Date”).                  B.     The term of this Lease shall expire at 11:59P.M. on the last day of the calendar month in  which the day immediately preceding the fifteenth (15th) anniversary of the Commencement Date shall occur (the  “Expiration Date”), subject to extension by renewal pursuant to and in accordance with the terms and conditions set  forth  in  Article  34  below,  or  such  earlier  date  upon  which  the  term  may  expire  or  be  cancelled  or  terminated  pursuant to the provisions of this Lease or by law.                  C.     Promptly  following  the  Commencement  Date, Landlord  and  Tenant  shall  execute  and  deliver a supplementary agreement (in the form annexed hereto as Exhibit “B”) setting forth the Commencement  Date, the Rent Commencement Date and the Expiration Date, but the failure by either party to so execute or deliver  said  supplementary  agreement  shall  not  in  any  way  reduce  Tenant's  obligations  or  Landlord's  rights  under  this  Lease.            Section 2.02                     A.     Landlord, at Landlord’s cost and expense, shall use commercially reasonable efforts to  perform  the  work  described  on  Exhibit  “C” attached  hereto  (collectively,  “Landlord’s  Work”)  on  or  prior  to  the  Target Commencement Date.  Landlord’s Work and Landlord’s Additional Work shall be performed in a good and  workmanlike  manner  using  materials,  standards and  finishes adopted  by  Landlord  as  "Building  standard",  which  shall be commensurate with Comparable Buildings (to the extent not specified on Exhibit “C” or Exhibit “C-1”, as  applicable) and all applicable Legal Requirements. Landlord shall file any plans with respect to Landlord’s Work  with  the  governmental  authorities  having  jurisdiction  and  shall  pay  all  required  fees  and  obtain  all  permits and  approvals required, if any.  Tenant, at Landlord’s reasonable expense, agrees to reasonably cooperate with Landlord  in connection therewith. Subject to Landlord’s Obligation to perform Landlord’s Work (including any Punch-List  Items) and Landlord’s Additional Work, Tenant agrees to accept possession of the Demised Premises in “as is” and                                                  -7-    NY 78267766v2 

 

“where is” condition on the Commencement Date.  Other than Landlord’s Work and Landlord’s Additional Work,  Landlord shall not be obligated to perform any other work whatsoever to prepare the Demised Premises for Tenant’s  initial occupancy thereof.  Notwithstanding anything herein to the contrary, solely with respect to Latent Defects,  Landlord shall  promptly  make,  or  cause  to  be  made,  any  necessary  repairs  or  replacements  with  respect to  Landlord’s Work and/or Landlord’s Additional Work, as applicable, upon and subject to the applicable terms of this  Lease,  provided  that  Tenant shall  deliver  notice  to  Landlord: (x) with  respect to  Landlord’s  Work, no  later  than  eleven (11) months following the Commencement Date; and (y) with respect to Landlord’s Additional Work, eleven  (11) months following the date on which such Landlord’s Additional Work has been substantially completed.  All  materials, work, labor, fixtures and installations required for Tenant’s use and occupancy of the Demised Premises  other than Landlord’s Work and Landlord’s Additional Work shall (subject to the provisions of Article 5 below) be  promptly furnished and performed by Tenant, at Tenant’s own cost and expense (subject to the provisions of Section  2.05 below).  Additionally, Landlord shall perform the work (“Landlord’s Additional Work”) set forth on Exhibit  “C-1” attached hereto.  Landlord shall use commercially reasonable efforts to substantially complete (i) Landlord’s  Work no later than the Target Commencement Date and (ii) Landlord’s Additional Work no later than June 1, 2021  (the “Additional Work Completion Date”).  For purposes hereof, the term “Latent Defects” shall mean any defective  items of Landlord’s Work and/or Landlord’s Additional Work, as applicable, that are not readily discoverable by  Tenant.                  B.                              (i)     Landlord shall deliver to Tenant at least ten (10) Business Days’ advance notice  of the anticipated Delivery Date. Tenant shall have the right to inspect the Demised Premises and in the event that  there shall be any Punch-List Items with respect to Landlord’s Work, Tenant shall deliver notice to Landlord of such  Punch-List  Items (“Tenant’s Punch  List  Notice”) within  ten  (10)  Business Days following  the  Delivery  Date  set  forth in Landlord’s notice.  If Tenant fails to timely deliver such Tenant’s Punch List Notice, all of Landlord’s Work  shall be conclusively deemed to have been satisfactorily completed on the date set forth in Landlord’s notice as the  Delivery Date, subject to Landlord’s obligations with respect to Latent Defects as expressly set forth in Subsection  2.02A hereof.  If Tenant timely delivers such Tenant’s Punch List Notice, other than the Punch-List Items set forth  on such Tenant’s Punch List Notice, all of Landlord’s Work shall be conclusively deemed to have been satisfactorily  completed on the date set forth in Landlord’s notice as the Delivery Date, subject to Landlord’s obligations with  respect  to  Latent  Defects  as  expressly  set  forth  in  Subsection  2.02A  hereof.  Landlord  shall  use  commercially  reasonable efforts to complete such Punch-List Items within forty-five (45) days after Landlord’s receipt of Tenant’s  Punch List Notice (subject to an extension of such time period, if necessary, by reason of Force Majeure (which  extension period for Force Majeure shall in no event exceed an aggregate of sixty (60) days), except if and to the  extent such Punch List Items are dependent on completion of Tenant’s Initial Installations, or some portion thereof  following the completion of Tenant’s Initial Installations, as applicable (in which case Landlord shall complete such  Punch  List  Items  within  forty-five  (45)  days  after  Tenant’s  completion of  Tenant’s  Initial  Installations,  or  the  applicable  portion  thereof,  as  applicable (subject  to  an  extension  of  such  time  period,  if  necessary,  by  reason  of  Force Majeure (which extension period for Force Majeure shall in no event exceed an aggregate of sixty (60) days)).   In the event that Landlord shall fail to complete any Punch-List Items within any of such forty-five (45)-day periods  (as extended by reason of Force Majeure (which extension period for Force Majeure shall in no event exceed an  aggregate of sixty (60) days)), Tenant shall have the right, at its option and upon delivery of at least ten (10) days’  prior notice to Landlord, to complete such Punch-List Items, in which event Landlord shall credit to Tenant against  the  next  installments  of  Fixed Rent or  Recurring  Additional  Rent due  hereunder  an  amount  equal  to all actual,  reasonable, out-of-pocket costs incurred by Tenant in performing such Punch-List Items.                         (ii)    Landlord shall deliver to Tenant at least ten (10) Business Days’ advance notice  of the anticipated date of completion with respect to Landlord’s Additional Work. Tenant shall have the right to  inspect Landlord’s Additional Work, and in the event that there shall be any Punch-List Items with respect to such  Landlord’s Additional Work, Tenant shall  deliver  notice  to  Landlord  of  such  Punch-List  Items  (“Tenant’s  Additional Work Punch List Notice”) within ten (10) Business Days following the date set forth in Landlord’s notice  for the completion of Landlord’s Additional Work (the “Restroom Delivery Date”).  If Tenant fails to timely deliver  such Tenant’s Additional Work Punch List Notice, all of Landlord’s Additional Work shall be conclusively deemed  to have  been  satisfactorily  completed  on  the  date  set  forth  in  Landlord’s  notice  as  the Restroom Delivery  Date,  subject to Landlord’s obligations with respect to Latent Defects as expressly set forth in Subsection 2.02A hereof.  If  Tenant timely delivers such Tenant’s Additional Work Punch List Notice, other than the Punch-List Items set forth                                                  -8-    NY 78267766v2 

 

on  such  Tenant’s Additional  Work Punch  List  Notice,  all  of Landlord’s  Additional  Work shall  be  conclusively  deemed to have been satisfactorily completed on the date set forth in Landlord’s notice as the Bathroom Delivery  Date, subject to Landlord’s obligations with respect to Latent Defects as expressly set forth in Subsection 2.02A  hereof.  Landlord shall use commercially reasonable efforts to complete such Punch-List Items within forty-five (45)  days after Landlord’s receipt of Tenant’s Additional Work Punch List Notice (subject to an extension of such time  period, if necessary, by reason of Force Majeure (which extension period for Force Majeure shall in no event exceed  an aggregate of sixty (60) days), except if and to the extent such Punch List Items are dependent on completion of  Tenant’s Initial Installations, or some portion thereof following the completion of Tenant’s Initial Installations, as  applicable (in which case Landlord shall complete such Punch List Items within forty-five (45) days after Tenant’s  completion of Tenant’s Initial Installations, or the applicable portion thereof, as applicable (subject to an extension  of such time period, if necessary, by reason of Force Majeure (which extension period for Force Majeure shall in no  event exceed an aggregate of sixty (60) days)).  In the event that Landlord shall fail to complete any Punch-List  Items within any  of such forty-five  (45)-day  periods  (as  extended  by reason  of  Force  Majeure  (which  extension  period for Force Majeure shall in no event exceed an aggregate of sixty (60) days)), Tenant shall have the right, at its  option and upon delivery of at least ten (10) days’ prior notice to Landlord, to complete such Punch-List Items, in  which  event Landlord  shall credit  to  Tenant  against  the  next  installments  of  Fixed  Rent or  Recurring  Additional  Rent due hereunder an amount equal to all actual, reasonable, out-of-pocket costs incurred by Tenant in performing  such Punch-List Items.                   C.                              (i)     On  or  prior  to September 1,  2021,  which  date  may  be  extended  due  to  Force  Majeure (which extension period for Force Majeure shall in no event exceed an aggregate of one hundred and eighty  (180)  days) and Tenant’s  Delay,  Landlord  shall  construct  common  area  amenity  space  (the  “Amenity  Space”)  consisting of at least ten thousand (10,000) rentable square feet on the twelfth (12th) floor of the 7-21 Condominium,  which  Amenity  Space  shall  contain  (1)  a  multi-purpose  meeting  and  event  space (which  may  serve,  by  way  of  example,  town  hall  events,  training  sessions,  board  meetings  and  client  events), (a) sufficient  to  accommodate  a  minimum capacity of 200 people, seated, or 110 people, in a classroom setting and (b) equipped with state-of-the-art  telecommunications  and  AV  sources,  and  (2)  a  pantry  equipped  with  a  warming  kitchen,  refrigerator  and  sink.   Landlord has provided Tenant with a proposed plan for the Amenity Space, which plan is attached hereto as Exhibit  “S”, and Tenant hereby confirms that such plan is acceptable to Tenant.  Landlord shall keep Tenant reasonably  apprised of any proposed changes to the design of the Amenity Space (the “Amenity Space Changes”) during the  build-out process, which changes shall be subject to Tenant’s reasonable approval, which may be requested by e- mail  to each  of  the  following addresses: chuck.cerria@fticonsulting.com; Daniel.johnson@fticonsulting.com;  William.johnson@turntown.com; and sheena.gohil@colliers.com.  Tenant shall approve or reject (with a reasonable  explanation for any such rejection), any proposed Amenity Space Changes within five (5) Business Days following  Landlord’s request therefor.  If Tenant fails to respond within such five (5) Business Day period, Tenant shall be  deemed to have given its consent to the applicable Amenity Space Changes.                         (ii)    Tenant shall have (a) a non-exclusive license, co-extensive with the Lease Term,  for the use of the Amenity Space, (b) preferential access in common with other tenants of the Building (it being  agreed that Landlord shall not grant any other tenants of the Building access to the Amenity Space that is higher in  priority than Tenant’s access to the Amenity Space) to the Amenity Space for any booking made by Tenant at least  one-hundred and eighty (180) days in advance or, if such notice is given less than one-hundred and eighty (180)  days  in  advance,  on  a  first-come,  first-serve  basis  (it  being  understood  that  in  no  event  shall  Landlord  accept  bookings for the Amenity Space from any persons other than Building tenants and occupants more than one-hundred  and eighty (180) days in advance) and (c) the right to cancel any such booking upon notice to Landlord at least  forty-five  (45) days  in  advance  without  incurring  any  charge  therefor,  it being  agreed  and  understood  that  the  foregoing shall not be construed as to prevent Landlord from imposing reasonable limitations from time to time on  how far in advance a booking for the Amenity Space may be made. Tenant’s use of the Amenity Space shall be  subject  to  established  rules  and  regulations  and  standards  of  maintenance applicable  to  the  users  of  the  same,  provided  that,  subject  to the  terms  of  this  Section  2.02C, (I)  Tenant  schedules  each  such  use  with  Building  management,  and  (II)  Tenant  pays to Landlord,  as  additional  rent,  or  to  the  operator  of  the  Amenity  Space  (the  “Operator”), as applicable, after each use by Tenant thereof but within thirty (30) days after being billed therefor,  Landlord’s or such Operator’s then established rate for such usage (the “Amenity Usage Charge”), which rate shall  be (x) no higher than the rate charged to any other tenant or occupant of the Building, and (y) at least ten percent                                                  -9-    NY 78267766v2 

 

(10%) less than the rate charged to any users other than tenants or occupants of the Building. Tenant agrees and  acknowledges that Landlord makes no warranty or representations as to the availability of such use (given that the  Amenity Space shall be reserved on a first-come, first-served, basis subject to the limitation set forth above), and  that Tenant’s inability to utilize such license due to prior reservations by other tenants or occupants of the Building  and/or other  users shall  not  serve  as  a  basis  for  rent  abatement  or  any  claim  against  Landlord,  the  Building  management or the Board for damages, all of which are hereby specifically waived by Tenant.                            (iii)   Landlord shall cause the Operator to operate the Amenity Space in accordance  with pre-established standards of quality and performance as set forth on Exhibit “Q” attached hereto and made a  part hereof (the “Quality Standards”).  If Tenant believes that the Operator has failed to operate the Amenity Space  in accordance with the Quality Standards, Tenant shall have the right to send a notice to Landlord (the “Operator  Default  Notice”),  which notice  shall  set  forth  in  reasonable  detail  any  deviations  from the  Quality  Standards.   If  Tenant believes that such failure has occurred more than (3) times in any twelve (12) month period during the Lease  Term (and Tenant has delivered the Operator Default Notice to Landlord with respect to each such failure), then  Tenant shall have the right to deliver a notice to Landlord (the “Operator Termination Request Notice”) requesting  that Landlord (1) terminate the then existing Operator, and (2) replace such Operator with another operator qualified  to operate the Amenity Space in accordance with the Quality Standards.  Within ten (10) Business Days following  Landlord’s  receipt  of  the  Operator  Termination  Request  Notice,  Landlord  shall  either (x) use  commercially  reasonable efforts to terminate the then existing Operator, or (y) notify Tenant that Landlord disputes the Operator  Termination  Request  Notice, which  notice  shall  specify  in  reasonable  detail  the reasons  for  the  dispute  (a  “Termination Dispute Notice”).  In the event that Landlord delivers a Termination Dispute Notice and the parties do  not reach a resolution with respect thereto within twenty (20) days following its delivery, either party shall have the  right to submit such dispute to Expedited Arbitration in accordance with the provisions of Subsection 11.05B below.   Subject  to  the provisions  of  the following Subsection  2.02C(iv),  the  Amenity  Space  shall  remain  open and  fully  operational in accordance with the Quality Standards during the Lease Term.                          (iv)    Landlord reserves the right for itself and for the Board (in accordance with the  terms of the Condominium Documents, but subject to the Board SNDA and the Board Consent) to temporarily close  the  Amenity  Space due  to  Force  Majeure (provided  that  any closure due  to  Force  Majeure  shall  not  exceed  an  aggregate  of  one  hundred  and  eighty  (180)  days), or  for  Repairs  and  Alterations (including  Repairs  following  a  casualty), which, in the reasonable judgment of Landlord or the Board are desirable or necessary to be made, until  said Repairs and Alterations shall have been completed; it being agreed, that except in an emergency, Landlord shall  not perform any voluntary Alterations or refurbish the Amenity Space (“Amenity Space Renovations”) more than  one  (1)  time  every five  (5)  years  during  the  Lease  Term and  shall  use  commercially  reasonable  efforts  to  give  Tenant at least twelve (12) months’ prior notice of any Amenity Space Renovations (which notice shall specify in  reasonable  detail  the  reason(s)  for  the  closure  of the  Amenity  Space  and  Landlord’s  estimated  time  period  for  completion  of  the  applicable  Amenity  Space  Renovation(s));  and  no  diminution  or  abatement  of  rent  or  other  compensation shall or will be claimed by Tenant, except as expressly set forth herein, nor shall this Lease or any of  the obligations of Tenant be affected or reduced, by reason of such closure, nor shall the same constitute an actual or  constructive eviction.  Landlord agrees to prosecute all Amenity Space Renovations undertaken by Landlord with  reasonable  diligence  and  continuity to  completion  in  accordance  with  the  Quality  Standards.  Landlord  shall  use  commercially  reasonable  efforts  (but  shall  not  be  obligated  to  use  overtime  or  premium  pay  labor)  to  minimize  interference with Tenant’s use of the Amenity Space in making any Repairs or Alterations, but, except as expressly  set  forth  in  the  following  sentence,  there  shall  be  no  allowance  to  Tenant  for  a  diminution  of  rental  value  or  interruption of business, and no liability on the part of Landlord, by reason of inconvenience, annoyance or injury to  business arising from Landlord, the Board or others making any Repairs or Alterations in or to any portion of the  Amenity  Space.  For  the  purposes  hereof,  the  term  “voluntary”  with  respect  to an  Alteration  shall  mean  an  Alteration  that  is  not  requested  by  Tenant,  not  necessitated  by  Legal  Requirements  or  by  a  requirement  of  the  Insurance Boards, not required pursuant to the obligations of Landlord under this Lease, and not necessitated by  Tenant’s specific use or manner of use of the Amenity Space.                           (v)     Notwithstanding anything herein to the contrary, in the event that (x) Landlord  fails to construct the Amenity Space on or prior to September 1, 2021, subject to Force Majeure (which extension  period  for Force  Majeure  shall  in  no  event  exceed  an  aggregate  of  one  hundred  and  eighty  (180)  days) and  any  Tenant’s Delay, and/or (y) the Amenity Space is closed for at least fifty (50) consecutive days in any twelve (12)  month  period  during  the  Lease  Term and,  (1) in  the  case  of  clause  (x)  above, Tenant  rents  amenity  space  from                                                  -10-    NY 78267766v2 

 

another provider for all or a portion of the period of time until Landlord constructs the Amenity Space, or (2) in the  case of clause (y) above, Tenant rents amenity space from another provider during such time, then, in each case,  Tenant shall be entitled to a credit against future payments of the Amenity Usage Charges in the actual, reasonable,  out-of-pocket amount paid by Tenant to such other provider for use (for the same purposes that Tenant would have  utilized the Amenity Space had it been available) during such period of non-completion or closure as a result thereof  (e.g., if closure of the Amenity Space in connection with Amenity Space Renovations is estimated to last twelve (12)  weeks and Tenant rents amenity space from another provider during the eleventh (11th) week but the Amenity Space  Renovations are completed early, then Tenant would nonetheless be entitled to a credit against future payments of  the Amenity Usage Charge as a result thereof), provided that Tenant delivers to Landlord a receipt for such amount,  together with reasonable supporting documentation.  For purposes hereof, Landlord’s obligation to “construct” the  Amenity Space shall be deemed to include cleaning all construction debris therefrom and furnishing the same and  otherwise delivering same clean and suitable for use.                  D.     Landlord and Tenant acknowledge and agree that, in order to expedite the build-out of  the  Demised  Premises  in  as  efficient  a  manner  as  possible,  Landlord  and  Tenant  intend  to  perform  portions  of  Landlord’s  Work, Landlord’s  Additional  Work, Tenant’s  Initial  Installations,  and Tenant’s  Initial Improvements  contemporaneously. Landlord and Tenant further acknowledge and agree that, in order to maximize such efficiency,  Landlord and Tenant shall each use commercially reasonable efforts to cooperate with the other in the scheduling  and performance of each party's respective work. Notwithstanding the foregoing, in the event that, after using such  efforts to cooperate with each other, any conflicts in the scheduling and/or performance of each party's respective  work shall remain, (i) from the Effective Date but prior to the Delivery Date, Landlord’s Work shall take priority  over Tenant’s Initial Installations (and Tenant may not perform any Tenant’s Initial Improvements), and (ii) from  and after the Delivery Date, Tenant’s Initial Improvements shall have priority over Landlord’s Additional Work.          Section 2.03                     A.       If Landlord shall be unable to give possession of the Demised Premises on the Target  Commencement  Date  for  any  reason,  then  Landlord  shall not  be  subjected  to  any  liability  for  the  failure  to  give  possession on said date, except as expressly set forth in Subsection 2.03B below; provided, however, no such failure  to give possession on such specific date shall affect the validity of this Lease or the obligations of Tenant hereunder  or be deemed to extend the Lease Term, except as expressly set forth in Subsection 2.03B below.                  B.     If the  Delivery  Date  shall  not occur  on  or  before the  Target  Commencement  Date (as  such date may be extended pursuant to the provisions of this Subsection 2.03B below), then Landlord shall not be  subject to any liability for any delay in the occurrence of the Delivery Date, but, as Tenant’s sole and exclusive  remedy in connection therewith (subject to the provisions of the immediately following sentences in this Subsection  2.03B),  the  Rent  Concession  Period  shall  be  extended  (x) by  one-half  (1/2)  day  for  each  day  after the date  (the  “Penalty Commencement Date”) that is the later to occur of (aa) the Target Commencement Date and (bb) the Delay  Inception  Date until  the  earlier  to  occur  of  the  Delivery  Date  and  the  sixtieth  (60th)  day  following  the Penalty  Commencement  Date,  (y)  by  one  (1)  day  for  each  day  commencing  on  the  sixty-first  (61st)  day  following  the  Penalty Commencement Date that the Delivery Date shall not have occurred until the earlier to occur of the Delivery  Date  and  the  ninetieth  (90th)  day  following  the Penalty Commencement  Date,  and  (z)  by  one  and  one-half  (1  1/2) days for each day commencing on the ninety-first (91st) day following the Penalty Commencement Date that  the Delivery Date shall not have occurred.  If the Delivery Date shall be delayed as a result of Force Majeure or  Tenant’s Delay, then the Target Commencement Date shall be deemed postponed by one (1) day for each day that  the Delivery Date does not occur by virtue of such Force Majeure (which postponement for Force Majeure shall in  no event exceed an aggregate of one hundred and eighty (180) days) or Tenant’s Delay.  If the Delivery Date has not  occurred within  one  hundred  eighty  (180)  days  following  the Penalty Commencement  Date (such  date,  the  “Landlord’s Work Termination Option Date”) and if the delay in the Delivery Date shall not have been caused by a  Force  Majeure  event (which delay  for  Force  Majeure  shall  in  no  event  exceed  an  aggregate  of  one  hundred  and  eighty (180) days) or Tenant’s Delay, then (except as set forth above), Landlord shall not be subject to any liability  for any delay in such Delivery Date, but, as Tenant’s sole and exclusive remedy in connection therewith (except as  set forth above), provided that Tenant’s commencement or performance of Tenant’s Initial Improvements is actually  delayed solely due to Landlord’s failure to so deliver possession of the Demised Premises to Tenant with Landlord’s  Work substantially completed, Tenant shall be entitled to terminate this Lease, but only by notice (the “Termination  Option Notice”) delivered to Landlord within fifteen (15) days after the Landlord’s Work Termination Option Date                                                  -11-    NY 78267766v2 

 

(the  “Termination  Option  Period”),  time  being  of  the  essence  with  respect  thereto,  with  such  termination  to  be  effective  as  of  the  thirtieth  (30th)  day  after  the  delivery  of  the  Termination  Option  Notice  to  Landlord  (the  “Termination  Option  Date”); subject,  however,  to  the  provisions  of  the  immediately  following  sentence.   In  the  event that Tenant delivers the Termination Option Notice to Landlord as aforesaid and the Delivery Date has not  occurred by the Termination Option Date, (i) this Lease shall be deemed canceled and terminated effective as of the  Termination Option Date, and (ii) except with respect to obligations expressly stated to survive the expiration or  sooner  termination  of  this  Lease,  neither  party shall have  any  further  obligations  to  the  other  under  this  Lease.   Failure by Tenant to deliver the Termination Option Notice during the Termination Option Period shall be deemed  to  constitute  a  waiver  of  Tenant’s  right  to  terminate  this  Lease  under  this  Subsection  2.03B.   For  purposes  of  determining the Rent Concession Period extension and whether Tenant may terminate this Lease, Landlord’s Work  shall be deemed substantially completed on the day it would have been substantially completed but for Tenant’s  Delay or Force Majeure (subject to the limitations on the extension period for Force Majeure set forth above in this  Subsection 2.03B), if any.                   C.     If Landlord fails to substantially complete Landlord’s Additional Work on or prior to the  Additional Work Completion Date, subject to Force Majeure (which extension period for Force Majeure shall in no  event exceed an aggregate of one hundred and eighty (180) days) and Tenant’s Delay, provided that Tenant is not  then receiving any extension of the Rent Concession Period pursuant to the provisions of Subsection 2.03B above,  as Tenant’s sole and exclusive remedy in connection therewith, the Rent Concession Period shall be extended by  one-half (1/2) day for each day after the date that is the later to occur of (aa) the Additional Work Completion Date  and (bb) the Delay Inception Date until Landlord’s Additional Work has been substantially completed.             Section 2.04   The parties hereto agree that this Article 2 constitutes an express provision as to the time  at which Landlord shall deliver possession of the Demised Premises to Tenant, and Tenant hereby waives any rights  to rescind this Lease which Tenant might otherwise have pursuant to Section 223-a of the Real Property Law of the  State of New York, or pursuant to any other law of like import now or hereafter in force.          Section 2.05   A.      Subject to the terms and conditions hereinafter set forth, Landlord shall provide  to  Tenant  a  construction  allowance  (“Landlord’s  Contribution”) to  reimburse  Tenant during  the  twenty-four  (24)  month  period  (the  “Eligible  Reimbursement  Period”)  commencing  on  the  Commencement  Date for  the  costs  expended  by  Tenant  to  perform  Tenant’s  Initial  Improvements,  in  an  aggregate  amount not  to  exceed  Thirteen  Million Eight Hundred Eighty-Two Thousand Eight Hundred and 00/100 Dollars ($13,882,800.00).  Landlord shall  fund the portion of Landlord’s Contribution then being requisitioned in the manner set forth in Subsections 2.05B  and 2.05C below, but only if all of the following conditions shall have been satisfied:                         (i)     Tenant  shall  not  then  be  in  default (after  notice of  such  default  shall  have  theretofore  been given  to  Tenant,  but  subject  to  the  provisions  of  Subsections 2.05F(i)  and/or (ii) below) with  respect to any of the monetary or material non-monetary terms, covenants or conditions to be performed or observed  by  Tenant  under  this  Lease,  nor  shall  an  Event  of  Default  have  occurred  and  then  be  continuing  (subject  to  the  provisions of Subsection 2.05F(ii) below);                         (ii)    Tenant shall have obtained, and at all times during the construction period shall  maintain, all necessary permits, licenses, authorizations and approvals from all governmental authorities having or  asserting jurisdiction in connection with Tenant’s Initial Improvements, and shall have delivered true copies thereof  to Landlord; and                         (iii)   Tenant  shall  have  delivered  to  Landlord,  for  approval  by  Landlord:   (x)  a  completed  requisition  for  payment  (using  the  AIAG702  form,  or  any  successor form,  issued  by  the  American  Institute  of  Architects),  certified  and  sworn  to  by  Tenant’s  architect  stating  or  accompanied  by:   (1)  the  amount  being requested, (2) receipted invoices for all labor and materials theretofore performed as part of Tenant’s Initial  Improvements not previously delivered to Landlord, or such other reasonable evidence of payment, (3) the cost of  labor and materials theretofore performed and incorporated in the Demised Premises and the aggregate cost of the  entire Tenant’s Initial Improvements to be performed, and (4) that the work completed to date has been performed in  good and workmanlike manner in accordance with the plans and specifications approved by Landlord in all material  respects and  in  compliance with  all  Legal  Requirements;  and  (y) partial waivers  of  lien  from  all  contractors and  subcontractors who  shall  have furnished  materials  or  supplies  or performed  work  or  services  in  connection  with                                                  -12-    NY 78267766v2 

 

Tenant’s Initial Improvements (it being agreed that any subcontractor who furnishes the same on behalf of itself and  any of its sub-subcontractors shall not also be required to deliver lien waivers from any such sub-subcontractors).                  B.     Within  thirty  (30)  days  after Tenant  shall  have complied with  all  of  the  conditions  set  forth in the foregoing Subsection 2.05A, and no more often than twice each month, Landlord shall pay to Tenant an  amount equal to that portion of Landlord’s Contribution, which shall equal, on a percentage basis, that portion of  Tenant’s  Initial  Improvements  then  completed in accordance  with  the  provisions  hereof,  as  certified  by  Tenant’s  architect, less all amounts of Landlord’s Contribution previously disbursed; provided, however, that (x) Landlord  shall not be required to make more than one (1) payment per calendar month, and (y) the disbursements hereunder  shall be subject to a retention of ten (10%) percent until Tenant’s Initial Improvements shall have been finally and  fully completed and approved in accordance with Article 5 hereof (The date upon which Landlord is required to  make the payment of Landlord’s Contribution to Tenant pursuant to this Subsection 2.05B is referred to herein as  the “Contribution Due Date”.)                  C.     Provided that Tenant shall not then be in default (after notice of such default shall have  theretofore been given to Tenant, but subject to the provisions of Subsections 2.05F(i) and (ii) below) with respect to  any  of  the monetary  or  material  non-monetary terms,  covenants  or  conditions  to  be  performed  or  observed  by  Tenant  under  this  Lease,  then,  within  thirty  (30)  days  following  the  last  to  occur  of:   (i) Tenant’s  request  for  payment of the final installment of Landlord’s Contribution, which request, in the case of Landlord’s Contribution,  may not be submitted to Landlord more than thirty (30) days following the expiration of the Eligible Reimbursement  Period,  (ii) completion  of  Tenant’s  Initial  Improvements (except  for punch-list  items) in  accordance  with  the  provisions  of  Article 5  below,  (iii) the  certification  of  Tenant’s  architect  that  Tenant’s  Initial  Improvements  have  been completed in a good and workmanlike manner, in accordance with the plans and specifications approved by  Landlord in  all  material  respects and  in  compliance  with  all  Legal  Requirements,  (iv) delivery  by  Tenant  to  Landlord of waivers of lien from all contractors, subcontractors and materialmen who shall have furnished materials  or supplies or performed work or services in connection with Tenant’s Initial Improvements (it being agreed that any  subcontractor who furnishes the same on behalf of itself and any of its sub-subcontractors shall not also be required  to deliver lien waivers from any such sub-subcontractors), (v) Tenant having obtained final approvals of Tenant’s  Initial  Improvements  (including letters  of  completion  or  amended  certificates  of  occupancy  for  each  and  every  permit application filed by or on behalf of Tenant) from all governmental authorities having or asserting jurisdiction  (including the New York City Department of Buildings) over the Demised Premises, and Tenant having furnished  Landlord  with  copies  thereof unless the  same  shall  be  available  for  public  viewing  on  the  New  York  City  Department of Buildings BIS system, and (vi) delivery by Tenant to Landlord of “as built” drawings or Tenant’s  Plans  stamped  “final”  by  Tenant’s  architect and  marked  to  reflect  field  notes  and  incorporating  all  changes  and  revisions  thereto with  respect  to  Tenant’s  Initial  Improvements  in  accordance  with  Subsection  5.02D  hereof, the  balance (the “Contribution Balance”) of Landlord’s Contribution that has not been previously disbursed (but, in the  aggregate, not in excess of the total cost of Tenant’s Initial Improvements) shall be disbursed to Tenant.  Tenant  expressly agrees  that  Landlord’s  obligation  to  pay  the  Contribution Balance shall  be  conditioned  upon  Tenant’s  timely compliance with the requirements set forth in clauses (i) - (vi) of this Subsection 2.05C.                  D.     Landlord’s  obligation  to  pay  Landlord’s  Contribution  shall  only  apply  to  that  part  of  Tenant’s  Initial  Improvements  performed  during  the  Eligible  Reimbursement  Period  that  consists  of  (i)  the  installation of walls, partitions, fixtures, improvements and appurtenances permanently attached to or built into the  Demised Premises, including the following: mechanical systems, flooring, ceilings, bathrooms, duct work, electrical  wiring, plumbing, millwork and supplemental air-conditioning systems (if any), affixed carpeting and other floor  coverings  (with  all  such  work being  referred  to  herein  collectively  as  “hard  costs”),  and  (ii)  design  fees,  architectural,  engineering,  construction  management  and  other construction consultants’  fees, filing  fees  and  permitting costs (with all such fees being referred to herein collectively as “soft costs”).                   E.     The  right  to  receive Landlord’s  Contribution with  respect  to  Tenant’s  Initial  Improvements as set forth in this Section 2.05 shall be for the exclusive benefit of Tenant, it being the express intent  of  the  parties  hereto  that  in no  event  shall  such  right  be  conferred  upon  or  for  the  benefit  of  any  third  party,  including,  without  limitation,  any  contractor,  subcontractor,  materialman,  laborer,  architect,  engineer,  attorney  or  any other person, firm or entity; provided, however, that nothing in the foregoing shall limit Tenant’s right to use  Landlord’s Contribution to pay any such parties for services or work performed in connection with Tenant’s Initial  Improvements, to the extent not prohibited pursuant to Subsection 2.05D above.                                                      -13-    NY 78267766v2 

 

               F.                              (i)     Supplementing  the  provisions  of  Subdivision  2.05A(i)  and  Subsection  2.05C  above, if,  on  the  date  that  Tenant  shall  request  a disbursement of  Landlord’s  Contribution  (including  the  Contribution Balance), Tenant shall be in default after Tenant shall have theretofore been given notice of any such  default with respect to any of the monetary or material non-monetary obligations of Tenant under this Lease, then  Tenant’s right to request such disbursement of Landlord’s Contribution shall be deemed suspended until such time  as Tenant shall have cured such default.  If Tenant shall have cured such default within the applicable cure period,  then Tenant’s right to request such disbursement of Landlord’s Contribution shall be deemed reinstated, but only if  Tenant shall have complied with the other applicable requirements of this Section 2.05 (provided however, that in no  event shall the Eligible Reimbursement Period be extended for more than ninety (90) days in the aggregate by virtue  of this Subsection 2.05F(i)).                          (ii)    If  (I)  an  Event  of  Default  occurs  by  reason  of  Tenant’s  failure  to  cure  a  monetary  or  material  non-monetary default  within  the  specified  cure  period  therefor  in  this  Lease  pursuant  to  Subdivision  2.05(F)(i)  above,  or  (II)  on  the  date  that  Tenant  shall  request  a  portion  of  Landlord’s  Contribution  (including the final installment thereof) an Event of Default shall have occurred and is continuing, then, in either  case, if (a) Tenant cures such Event of Default prior to the EOD Cure Date, Landlord shall not have terminated this  Lease in accordance with Article 15 below by virtue of such Event of Default, and (b) (x) Tenant shall not be in  default of any of Tenant’s other monetary or material non-monetary obligations under this Lease after notice of such  default shall have been given to Tenant (in which event Subsection 2.05F(i) and (ii) shall apply), and (y) no other  Event of Default shall then be continuing (in which event this Subsection 2.05F(ii) shall apply), then, from and after  the subject EOD Cure Date, Tenant’s right to request such portion of the Landlord’s Contribution shall be deemed  reinstated,  but  only  if  Tenant  shall  have  complied  with  the  other  applicable  requirements  of  this  Section  2.05  (provided, however, that in no event shall the Eligible Reimbursement Period be extended for more than 90 days in  the aggregate by virtue of this Subsection 2.05F(ii) and Subsection 2.05F(i) hereof).  The “EOD Cure Date” shall  mean  the  earlier  to  occur of (A)  the  date  on  which  Tenant  gives  notice  to  Landlord  that  Tenant  has  cured  the  applicable Event of Default or (B) the date on which Landlord received actual knowledge of such cure, provided that  with respect to clause (B) above, in no event shall such date be more than five (5) Business Days prior to Landlord’s  receipt of Tenant’s notice as provided in clause (A) above.                  G.     Any  portion  of  Landlord’s  Contribution  not requested by Tenant during  the  Eligible  Reimbursement Period (or, with respect to the final installment thereof, within thirty (30) days thereafter) pursuant  to the terms of this Article 2 shall be credited against Fixed Rent first coming due and payable hereunder.                  H.     If any installment of Landlord’s Contribution or Landlord’s Space Planning Contribution  is not paid on or prior to the applicable Contribution Due Date (or the expiration of the thirty (30) day period set  forth in Section 2.06 hereof with respect to Landlord’s Space Planning Contribution), the same shall bear interest at  the  Interest  Rate from  the  applicable  Contribution  Due  Date  until  paid.   If  any  installment  of  Landlord’s  Contribution or  Landlord’s  Space  Planning  Contribution is  not  paid  within  forty-five  (45)  days  after  the  Contribution Due Date (or the expiration of the thirty (30) day period set forth in Section 2.06 hereof with respect to  Landlord’s Space Planning Contribution), Tenant shall have the right to deliver notice to Landlord, provided that  such notice shall bear the following legend typed in bold, capital letters at the top:  “IF LANDLORD SHALL FAIL  TO PAY THE INSTALLMENT OF LANDLORD’S CONTRIBUTION OR LANDLORD’S SPACE PLANNING  CONTRIBUTION    PREVIOUSLY  REQUESTED  PURSUANT  TO        [SUBSECTION  2.05A  OF  THE  LEASE  ] /  [SECTION 2.06 OF THE LEASE] WITHIN TEN (10) BUSINESS DAYS AFTER LANDLORD’S RECEIPT OF  THIS  SECOND  REQUEST  THEREFOR,  TENANT  SHALL  HAVE  THE  RIGHT  TO DEDUCT  THE  UNPAID  PORTION  OF  SUCH  INSTALLMENT  FROM  THE  NEXT  INSTALLMENT(S)  OF  FIXED  RENT  COMING  DUE IN ACCORDANCE WITH THE PROVISIONS OF SUBSECTION 2.05H OF THE LEASE.”              If, within ten  (10) Business Days after receipt of such notice, Landlord shall not have paid to Tenant the amount of such unpaid  installment, and Landlord shall not have disputed any aspect of such unpaid installment claimed by Tenant (it being  understood that Landlord  shall  pay  any  portion  of  such  unpaid  installment  that  Landlord  does  not  dispute),  then  Tenant may deduct the unpaid portion of such unpaid installment (together with interest at the Interest Rate accruing  from and after the Contribution Due Date (or the expiration of the thirty (30) day period set forth in Section 2.06  hereof with respect to Landlord’s Space Planning Contribution) through the date paid by Landlord or deducted by  Tenant, as the case may be) from the next installment of Fixed Rent coming due.  If Landlord does pay the amount                                                  -14-    NY 78267766v2 

 

of such unpaid installment within ten (10) Business Days after receipt of such notice, Landlord shall pay (if and to  the extent not already paid) the interest with respect to such unpaid installment that has accrued, at the Interest Rate,  from and after the Contribution Due Date (or the expiration of the thirty (30) day period set forth in Section 2.06  hereof  with  respect  to  Landlord’s  Space  Planning  Contribution) through  the  date  such  installment  is  paid  by  Landlord.  Any dispute under this Subsection 2.05H with respect to any aspect of such unpaid installment shall be  resolved by Expedited Arbitration in accordance with the provisions of Subsection 11.05B below.  In the event that  the  arbitrator  shall  determine  in favor  of  Tenant, and within  ten  (10)  Business  Days  after  such  determination,  Landlord shall not have paid to Tenant the amount that such arbitrator determined is due to Tenant, then Tenant may  deduct the unpaid portion of such amount from the next installment of Fixed Rent coming due (together with interest  at the Interest Rate accruing from and after the applicable Contribution Due Date (or the expiration of the thirty (30)  day period set forth in Section 2.06 hereof with respect to Landlord’s Space Planning Contribution) through the date  paid to Tenant).            Section 2.06   Within thirty (30) days following Tenant’s request therefor, Landlord agrees to provide to  Tenant an amount (“Landlord’s Space Planning Contribution”) for the cost expended by Tenant to perform the test- fit (and all revisions) with respect to Tenant’s Initial Improvements, in an aggregate amount not to exceed Twenty  Four Thousand One Hundred Forty-Four and 00/100 Dollars ($24,144.00).                                               ARTICLE 3.                                                                                                 RENT          Section 3.01   Tenant covenants and agrees that, during the Lease Term, Tenant shall pay to Landlord  the Fixed Rent in accordance with Section 1.01 at the annual rate set forth on Schedule 1-2 attached hereto, in equal  monthly installments, in advance, on the first day of each calendar month during the Lease Term, at the office of  Landlord  or  such  other  place  as  Landlord  may  designate  without  any  abatement,  reduction,  setoff,  counterclaim,  defense  or  deduction  whatsoever,  except  as  otherwise expressly set  forth  in  this Lease.  Notwithstanding  the  foregoing, Tenant’s obligation to pay any Fixed Rent (such amount, the “Excused Rent”) for the period beginning  on  the  Commencement  Date  and  ending  on  the  day  immediately  preceding  the  Rent  Commencement Date (the  “Rent Concession Period”), as such Rent Concession Period may be extended pursuant to Subsection 2.03B above,  this Section 3.01, or any other provisions of this Lease expressly granting Tenant an abatement or offset right for  Fixed Rent, shall abate so long as no monetary or material non-monetary default (after notice of such monetary or  material  non-monetary default  shall  have  theretofore  been  given  to  Tenant,  but  subject  to  the  provisions  of  Subsection 3.07 below).  As used herein, the “Rent Commencement Date” shall mean the date that occurs twelve  (12) full months and  fifteen  (15)  days following  the  Commencement  Date (i.e.,  April  15,  2022  if  the  Commencement Date occurs on the Target Commencement Date); provided that if following the Commencement  Date, Tenant is actually delayed in performing or substantially completing Tenant’s Initial Improvements due solely  to a Construction Delay, and such Construction Delay continues for more than thirty (30) days following the date on  which Tenant delivers notice to Landlord setting forth the Construction Delay (which notice may not be sent prior  the  actual  occurrence  of  the Construction  Delay)  (such  notice,  the  “Construction Delay Notice”), the  Rent  Commencement  Date shall  be  postponed  by  one  (1)  day  for  each  calendar  day  that  Tenant  is  so  delayed,  commencing on the thirty-first (31st) day following Tenant’s delivery of the Construction Delay Notice (or the date  on which Landlord actually became aware thereof, as applicable; provided that in no event shall such date be more  than five (5) Business Days prior to Landlord’s receipt of the Construction Delay Notice) (the “Construction Delay  Commencement Date”) until the earlier to occur of (a) the date upon which the Construction Delay ceases to exist,  and (b) the date that occurs seventy-five (75) days following the Construction Delay Commencement Date. In the  event that Tenant’s obligation to pay Fixed Rent shall commence on a date which shall be other than the first day of  a calendar month, the same shall be prorated at the rental rate applicable during the first year of the Lease Term, and  shall be paid by Tenant to Landlord together with the first full monthly installment of Fixed Rent as shall become  due  hereunder (after  applying  the Excused  Rent  and  any  other  abatement,  offset  or  rent  credit  that  Tenant  is  expressly entitled to under this Lease). In the event that the Lease Term shall expire or sooner terminate on a date  that shall be other than the last day of a calendar month, Tenant’s obligation to pay Fixed Rent shall be prorated at  the then prevailing rental rate.            Section 3.02   All costs, charges, expenses and payments (including the payments required to be made  by  Tenant  pursuant  to  Article 19  below)  which  Tenant  assumes,  agrees  or  shall  be  obligated  to  pay  to  Landlord                                                  -15-    NY 78267766v2 

 

pursuant to this Lease (other than Fixed Rent) shall be deemed additional rent, and, in the event that Tenant shall fail  to timely pay the same, Landlord shall have all of the rights and remedies with respect thereto as are provided for  herein or by applicable Legal Requirements in the case of non-payment of Fixed Rent.  If no date is specified herein  for Tenant’s payment of additional rent, then same shall be due within thirty (30) days after being billed therefor.           Section 3.03   Tenant  covenants  to  pay  the  Fixed  Rent  and  additional  rent  as  in  this  Lease  provided,  when due and, unless otherwise expressly provided elsewhere in this Lease, without notice or demand, in lawful  money of the United States which shall be legal tender in payment of all debts and dues, public and private, at the  time of payment.  If any installment of Fixed Rent or any additional rent shall not be paid within five (5) Business  Days after such installment of Fixed Rent or additional rent shall have first become due, then, in addition to paying  such installment of Fixed Rent or additional rent, Tenant shall also pay to Landlord interest thereon from the due  date until such installment of Fixed Rent or additional rent, together with such interest thereon that has theretofore  accrued, is fully paid at the Interest Rate (defined in Article 16 below); provided that Tenant shall not be required to  pay interest the first (1st) time in any calendar year that Tenant fails to pay Fixed Rent or additional rent within five  (5) Business Days after such payment shall first become due, unless Tenant shall have failed to pay such rent within  five (5) Business Days after Landlord shall have given Tenant notice that such rent is past due. Such interest charge  shall  be  due  and  payable  as  additional  rent  with  the  next  monthly  installment  of  Fixed  Rent.  The  foregoing  obligations on the part of Tenant shall not preclude the simultaneous or subsequent exercise by Landlord of any and  all other rights or remedies provided for in this Lease or now or hereafter existing at law or in equity.  No payment  by Tenant or receipt by Landlord of a lesser amount than the Fixed Rent or additional rent herein stipulated shall be  deemed  to  be  other  than  on  account  of  the  earliest  stipulated  Fixed  Rent  or  additional  rent  (unless  Landlord,  in  Landlord’s sole and absolute discretion, shall otherwise so elect), nor shall any endorsement or statement on any  check or in any letter accompanying any check or payment, as Fixed Rent or additional rent, be deemed an accord  and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord’s right to recover  the balance of such Fixed Rent and additional rent or pursue any other remedy provided in this Lease, at law or in  equity.          Section 3.04   If  all  or  any  part  of  the  Fixed  Rent  or  additional  rent  shall  at  any  time  become  uncollectible, reduced or required to be refunded by virtue of any Legal Requirements (including rent control or  stabilization  laws),  then  for  the  period  prescribed  by  said  Legal  Requirements,  Tenant  shall  pay  to  Landlord  the  maximum  amounts  permitted  pursuant  to  said  Legal  Requirements, and  Tenant  shall  execute  and  deliver  such  agreement(s) and take such other reasonable steps as Landlord may reasonably request (provided that same are then  legally  permissible)  to  permit  Landlord  to  collect  the  maximum  rent  which,  from  time  to  time  during the  continuance of such legal rent restriction, may be legally permissible (and not in excess of the amounts then reserved  therefor under this Lease).  Upon the expiration or other legal termination of the applicable period of time during  which such amounts shall be uncollectible, reduced or refunded:  (a) the Fixed Rent and additional rent shall become  and  shall  thereafter  be  payable  in  accordance  with  the  amounts  reserved  herein  for  the  periods  following  such  expiration or termination, and (b) provided that Tenant is legally permitted to pay and Landlord is legally permitted  to collect same, Tenant shall pay to Landlord as additional rent, within thirty (30) days after demand, all uncollected,  reduced or refunded amounts that would have been payable for the aforesaid period under this Lease absent such  Legal Requirements (and not in excess of the amounts then reserved therefor under this Lease).  The provisions of  the immediately preceding sentence shall survive the expiration or sooner termination of this Lease.          Section 3.05   If  Landlord  shall  direct  Tenant  to  pay  Fixed  Rent  or  additional  rent  to  a  “lockbox”  or  other depository whereby checks issued in payment of Fixed Rent or additional rent (or both, as the case may be) are  initially cashed or deposited by a person or entity other than Landlord (albeit on Landlord’s authority), then Tenant  shall  be  fully  credited  with  making  such  payment  when  actually  received  by  such  other  person  or  entity on  Landlord’s authority exactly as if same were received by Landlord, and for any and all purposes under this Lease  (subject  to  Section  30.01  below), Tenant shall  not  be in  default  of  Tenant’s  obligation  to  pay Fixed  Rent  or  additional  rent,  nor  shall  any  interest  (as  provided  for  in  Section  3.03  above)  be  imposed,  if  and  for  so  long as  Tenant shall timely pay Fixed Rent and additional rent required pursuant to this Lease in the manner designated by  Landlord and such payment by Tenant shall be deemed to satisfy Tenant’s obligations hereunder as if such payments  were made to Landlord.            Section 3.06   Notwithstanding anything to the contrary contained in this Article 3 (but subject to the  last  sentence  of  this  Section 3.06),  provided  that  Landlord  shall  give  Tenant  not  less  than thirty (30) days’ prior                                                  -16-    NY 78267766v2 

 

notice thereof (which notice shall identify a domestic bank and contain appropriate wire instructions), Tenant shall  pay  all  future  monthly  installments  of  Fixed  Rent  at  the  office  of  such  domestic  bank,  by  wire  transfer  of  immediately available federal funds, to the account of Landlord.  On not less than thirty (30) days’ prior notice,  Landlord may thereafter revise or revoke such direction to pay Fixed Rent by wire transfer.  If Landlord shall direct  Tenant to pay Fixed Rent by wire transfer in accordance with this Section 3.06, then Tenant shall not be in default of  Tenant’s obligation to pay Fixed Rent (and Tenant shall not be responsible for the payment of any interest resulting  from any late payment thereof) if and for so long as Tenant shall timely comply with Landlord’s wire instructions in  connection with such payments.  Accordingly, if Tenant shall have timely complied with Landlord’s instructions  pertaining to a wire transfer given as aforesaid, but the funds shall thereafter have been misdirected or not accounted  for properly by the recipient bank designated by Landlord, then the same shall not relieve Tenant’s obligation to  make  the  payment  so  wired,  but  shall toll  the  due  date  for  such  payment  until  the  wired  funds  shall  have  been  located.  Nothing contained in the immediately preceding sentence shall be construed to place Tenant in default of  Tenant’s obligation to pay rent, or to make Tenant subject to any interest resulting from any late payment thereof, if  and for so long as Tenant shall timely initiate such wire transfer of the rent required to be paid pursuant to this Lease  to the account designated by Landlord.  Notwithstanding anything to the contrary contained in this Section 3.06,  payments made by Tenant through the ACH network (i.e., the Automated Clearing House network that is under the  supervision of the National Automated Clearing House Association or any successor thereto) shall be deemed to be  the equivalent of a wire transfer of immediately available federal funds.          Section 3.07   Supplementing  the  provisions  of  Section  3.01  above, if,  at  any  time during the  Rent  Concession Period, or during any period of time thereafter that Tenant shall be entitled to the Excused Rent, as the  case may be:                  A.     Tenant shall be in default (after Tenant shall have theretofore been given notice of any  such default) with respect to any of the monetary or material non-monetary obligations of Tenant under this Lease,  then  the  Rent  Concession  Period,  or  Tenant’s  right  to  the  Excused  Rent,  as  the  case  may  be,  shall  be  deemed  suspended until such time as Tenant shall have cured such monetary or material non-monetary default.  If Tenant  shall have cured such monetary or material non-monetary default within the applicable cure period, then the Rent  Concession Period and Tenant’s right to the Excused Rent shall, as the case may be, be deemed reinstated; or                  B.     If  (I)  an  Event  of  Default  occurs  by  reason  of  Tenant’s  failure  to  cure  a monetary  or  material non-monetary default within the specified cure period therefor in this Lease pursuant to Subsection 3.07A  above, or (II) on the date on which Tenant shall be entitled to the Excused Rent, an Event of Default shall have  occurred and is continuing, then, in either case, if (a) Tenant cures such Event of Default prior to EOD Cure Date  and Landlord shall not have terminated this Lease in accordance with Article 15 below by virtue of such Event of  Default,  and  (b) (x) Tenant  shall  not  be  in  default  of  any  of  Tenant’s  other monetary  or  material  non-monetary  obligations under this Lease after notice of such default shall have been given to Tenant (in which event Subsection  3.07A and B shall apply), and (y) no other Event of Default shall then be continuing (in which event this Subsection  3.07B shall apply), then, from and after the subject EOD Cure Date, the Rent Concession Period and Tenant’s right  to the Excused Rent shall, as the case may be, be deemed reinstated.                                             ARTICLE 4.                                                                                                  USE          Section 4.01   Tenant shall use and occupy the Demised Premises for the Authorized Use, and for no  other purpose.            Section 4.02   Subject to the provisions of Section 31.17 below, Tenant specifically agrees that Tenant  shall not permit any part of the Demised Premises to be used for any of the following purposes: (a) for retail banking  or retail lending purposes of any kind; (b) for a safe deposit business or the sale of travelers checks and/or foreign  exchange to the  general  public on  an  “off-the-street”  basis; (c) as  a  kitchen  other  than  a  typical  office pantry  or  (subject to the provisions of Section 4.04 below) warming kitchen, in each case, for the exclusive use of Tenant and  Persons  Within  Tenant’s  Control,  but in  no  event  shall  any  open  flame  cooking  be  permitted  anywhere  in  the  Demised Premises), restaurant or cafeteria (other than a Dining Facility that complies with the provisions of Section  4.04  below); (d) for  manufacturing,  storage, shipping, or  receiving (other  than  with  respect  to  the shipping  and                                                  -17-    NY 78267766v2 

 

receiving  of  mail, packages and  other  items as  customary  and  appropriate  for  a  typical  office  occupant  of  comparable size); (e) for retail securities brokerage purposes open to the general public on an “off-the-street” basis;  (f) for any retail sales to the general public on an “off the street” basis or as a store (except that the foregoing shall  not be deemed to prohibit the telephonic sale of products or services ancillary to the Authorized Use); (g) for an  office sharing or co-working business, or for the operation of a business that provides office suites and/or shared  office workplaces to its clients, customers or members, (h) for the sale of any food or beverage or as a news and  cigar stand (or anything similar thereto), other than vending machines for the exclusive use of Tenant and Persons  Within Tenant’s Control; (i) for any sale of merchandise with delivery at or from the Demised Premises; (j) for the  production of samples or workroom; or (k) for any purpose other than the Authorized Use.  In addition, no part of  the Demised Premises may be used by (i) an agency, department or bureau of the United States Government, any  state  or  municipality  within  the  United  States,  or  any  foreign  government,  or  any  political  subdivision  of  any  of  them,  or  (ii) if, in  Landlord’s  reasonable  judgment, such  use  will lower  the  first-class  character  of  the  Building  (including, by way of example, and not of limitation, by generating foot traffic in the lobby of the Building in excess  of foot traffic commensurate with ordinary office use), or create unreasonable or excessive elevator loads, including  if such use would be by any tax exempt entity within the meaning of Section 168(h)(2) of the Internal Revenue Code  of 1986, as amended, or any successor or substitute statute, or rule or regulation applicable thereto (as same may be  amended).          Section 4.03   Tenant expressly acknowledges that irreparable injury will result to Landlord in the event  of a breach of any of the covenants made by Tenant in this Article 4, and it is agreed that, in the event of such  breach,  Landlord  shall  be  entitled,  in  addition  to  any  other  remedies  available,  to  an  injunction  to  restrain  the  violation thereof.           Section 4.04   A.      During  the  Lease  Term,  and  subject  to  all applicable  Legal  Requirements, all  requirements or recommendations of Insurance Boards, and Rules and Regulations, Tenant may, at Tenant's own  cost and expense, install, maintain and operate in a portion of the Demised Premises, subject to the Dining Facility  Location Requirements being satisfied, a warming kitchen and dining facility (collectively, the “Dining Facility”) in  accordance with, and subject to, the terms, covenants and conditions contained in this Section 4.04 and the other  applicable provisions of this Lease.  For the avoidance of doubt, (i) the Dining Facility may include tables, chairs  and microwaves for use by Tenant and Persons Within Tenant’s Control and (ii) any typical office pantries installed,  maintained and operated at the Demised Premises for the exclusive use of Persons Within Tenant’s Control shall not  be deemed a “Dining Facility” and shall not be subject to the terms of this Section 4.04.                  B.     The  “Dining  Facility  Location  Requirements”  shall  mean  that  (a)  the  warming kitchen  consists of no more than 15,000 contiguous rentable square feet, in the aggregate, (b) no odors shall emanate from  the  warming  kitchen to  areas  outside of  the Demised  Premises,  (c)  no  noise  (including  music)  or  vibrations  emanating from the Dining Facility are audible or can be felt in any portion of the Building outside the Demised  Premises, and (d) neither the Dining Equipment, nor the use or operation of the Dining Facility or any of the Dining  Equipment, shall materially and adversely affect the operation of any part of the Building Systems, or any Building  service or utility, or disturb any other tenant or other occupant of the Building.  If at any time during the Lease Term  any of the Dining Facility Location Requirements are not satisfied and Tenant is not able to remedy same within five  (5) Business Day after notice from Landlord thereof, the portion of the Demised Premises being used as a Dining  Facility shall not be used for the Dining Use (as hereinafter defined); provided, however, that, if all of the Dining  Facility Location Requirements can be satisfied by relocating the Dining Facility to another portion of the Demised  Premises, Tenant may, at Tenant's own cost and expense, so relocate the Dining Facility to another portion of the  Demised Premises.  In furtherance of satisfying the Dining Facility Location Requirements, as part of the work to be  performed in the Dining Facility, the Dining Equipment and the placement and installation thereof shall be subject  to Landlord's reasonable approval and conditions, and Tenant shall, at Tenant's own cost and expense, comply with  such  requirements  that  Landlord  may  reasonably  impose  with  respect  to  the  operation of  the  Dining  Facility  (including  the  Dining  Equipment),  all  without  any  representation  or  warranty  on  the  part  of  Landlord  that  such  approval, conditions and/or requirements will result in the satisfaction of the Dining Facility Location Requirements.                    C.     The Dining Facility shall be used solely for (i) the warming (but not open flame cooking)  and/or sale of food to, and (ii) dining for use by, the officers, employees and business visitors of Tenant, or any  parent, affiliate or subsidiary of Tenant, and Tenant's permitted subtenants and Desk Sharing Entities, and for no  other purpose (the foregoing use being herein referred to as the “Dining Use”), it being understood and agreed that,                                                  -18-    NY 78267766v2 

 

for the purposes of this Lease, a “business visitor of Tenant, or any parent, affiliate or subsidiary of Tenant, and  Tenant's  permitted  subtenants  and  Desk  Sharing  Entities”  (and  words  of  similar  import)  shall  not  include  other  tenants or other occupants of the Building unless such tenants or other occupants have a business reason to be in the  Demised Premises other than to use the Dining Facility.  Tenant shall not permit the Dining Facility to be used by  any person or entity other than the officers, employees and business visitors of Tenant, or any parent, affiliate or  subsidiary of Tenant, or of Tenant's permitted subtenants and Desk Sharing Entities, or any other person having a  business  reason  to  be  in  the  Demised  Premises  other  than  to  use  the  Dining  Facility, without  first  obtaining  Landlord's prior consent.                  D.     Any and all work that Tenant desires to perform in the Dining Facility to prepare same  for the Dining Use shall be performed by Tenant, at Tenant’s own cost and expense, in accordance with, and subject  to, Article 5 of this Lease, and all of the other applicable provisions of this Lease.  Nothing contained in this Lease  shall be deemed to constitute a warranty or representation by Landlord that any portion of the Demised Premises  may  lawfully  be  used, occupied  or  operated  for  the  Dining Use, or  that  any  portion  of  the  Demised  Premises  is  suitable for the Dining Use or will satisfy the Dining Facility Location Requirements, Tenant hereby acknowledging  that neither Landlord, nor any person acting on behalf of Landlord, has made any representations or warranties as to  whether any portion of the Demised Premises may be so used, occupied or operated or whether any portion of the  Demised Premises is suitable for such use or can satisfy the Dining Facility Location Requirements.                   E.     Tenant,  at  Tenant’s own  cost  and  expense,  shall  obtain  and  maintain  all  necessary  approvals of all governmental authorities having jurisdiction (including all permits and licenses, and any amendment  to the certificate of occupancy for the Building) that are necessary in order to occupy and operate the Dining Facility  for the Dining Use.  If and to the extent that Landlord's cooperation is reasonably required to obtain any of such  approvals, permits, licenses or amendments, provided that Tenant shall not then be in default of any of the monetary  or material non-monetary obligations of Tenant under this Lease (after notice of such breach or default shall have  theretofore been given to Tenant, but subject to Subsection 4.04K below), Landlord agrees to reasonably cooperate  with  Tenant  (at  no  cost  to  Landlord)  in  connection  with  Tenant  obtaining  such  approvals,  permits,  licenses  or  amendments (including, if necessary, the execution of any applications or other documents required therefor), but  only  if  and  to  the  extent  that  Landlord shall  not  incur  any  out-of-pocket  expense  or  suffer  any  liability  thereby.   Tenant  shall  at  all  times  comply  with  the  terms  and  conditions  of  each  such  approvals,  permits,  licenses  and  amendments.                  F.     Notwithstanding anything contained in this Lease to the contrary, if Tenant shall elect to  construct the Dining Facility, then it shall be Tenant’s obligation, at Tenant’s own cost and expense, to (i) operate  the  Dining  Facility,  including  all  of  the  equipment  located  within  the  Dining  Facility  or  otherwise  used  in  connection with the operation of the Dining Facility, regardless of whether said equipment (collectively, the “Dining  Equipment”)  is  affixed  to  the  Building,  (ii)  clean  the  Dining  Facility  (including  the  Dining  Equipment),  (iii)  maintain the Dining Facility (including the Dining Equipment) in good working order and condition, and (iv) make  all necessary repairs to and replacements of the Dining Facility and the Dining Equipment and to all other portions  of  the  Building  inside  and  outside  the  Demised  Premises  that  are  damaged  by  the  installation,  use,  operation,  maintenance, repair, replacement and/or removal of the Dining Facility or the Dining Equipment, all in accordance  with,  and  subject  to,  all  applicable  Legal  Requirements  and  all  requirements  or  recommendations  of  Insurance  Boards.  All water used in connection with the operation of the Dining Facility (including the Dining Equipment)  shall be paid for by Tenant and measured by the metering system described herein, and Tenant shall be supplied  with cold water for use in the Dining Facility in accordance with, and subject to, all of the terms, covenants and  conditions contained in Article 18 below and the other applicable provisions of this Lease.  All electricity used in  connection  with  the  operation  of  the  Dining  Facility  (including  the  Dining  Equipment  and  all  hot  water  heaters  servicing such Dining Equipment and Dining Facility) shall be paid for by Tenant and measured by the metering  system described below, and Tenant shall be supplied with electricity for use in the Dining Facility in accordance  with, and subject to, all of the terms, covenants and conditions contained in Articles 18 and 20 below, and the other  applicable provisions of this Lease.                   G.     Tenant, at Tenant’s own cost and expense, shall, in accordance with, and subject to, all  Legal  Requirements  and  all  requirements  or  recommendations  of  Insurance  Boards  or  Article  8  and  the  other  applicable provisions of this Lease:                                                  -19-    NY 78267766v2 

 

                      (i)     To  the  reasonable  satisfaction  of  Landlord (and  in  furtherance  of  Tenant's  obligations under Section 36.02 below), keep the Dining Facility, the balance of the Demised Premises and the areas  adjacent thereto, free from rats, mice, insects and other vermin, and shall, prior to the opening of the Dining Facility,  obtain  and  maintain  at  all  times  during  the  Lease  Term  a  service  contract,  with  an  entity  approved  by  Landlord  (which approval shall not be unreasonably withheld, conditioned or delayed), for the extermination of rats, mice,  insects and other vermin, in and about the Dining Facility, such service contract and all renewals or replacements  thereof to be in form reasonably approved by Landlord, and a copy thereof to be delivered to Landlord prior to the  opening  of  the  Dining  Facility,  or, in  the case  of  renewal  or  replacement  contracts,  prior  to  the  termination  or  expiration of the prior contract;                         (ii)    Prevent fat, grease or any other greasy substance from entering the waste lines  of the Building;                          (iii)   Put and maintain the floors in the warming kitchen within the Dining Facility in  a waterproof condition, but only to such portions of said floors in, on or around which water is used;                          (iv)    Handle and dispose of all rubbish, refuse, garbage and waste from the Dining  Facility  in  accordance  with  all  applicable  Legal  Requirements  and  all  requirements  or  recommendations  of  Insurance Boards, and not permit the accumulation of any rubbish, refuse or garbage in, on, or about any part of the  Building.   All  food  or  food  product  rubbish,  refuse,  garbage  or  waste  shall  be stored  until  collection  in  closed  containers and kept in a sealed and refrigerated wet trash room within the Demised Premises, to be installed and  maintained by Tenant.  If at any time during the Lease Term such food or food product rubbish, refuse, garbage  and/or waste generated in the Demised Premises results in an increase in Landlord’s trash carting costs or exceeds  the capacity that Landlord’s trash carting service is willing to collect under Landlord’s then existing agreement with  such trash carting service (in each case, in excess of such rubbish, refuse, garbage and/or waste that a typical office  occupant would generate), Tenant shall, at Landlord’s option, pay the actual increase in such costs or enter into a  supplemental trash carting arrangement, at Tenant’s cost, with such trash carting service or, at Tenant’s option, a  different  trash  carting  service  reasonably  approved  by  Landlord,  in  each  case,  with  respect  to  such  food  or  food  product rubbish, refuse, garbage and/or waste generated in the Demised Premises in excess of that which a typical  office occupant would generate; and                          (v)     Cause  all  of  the  Dining  Facility  Location  Requirements  to  be  observed,  performed and complied with at all times.                  H.     Tenant shall not permit the plumbing facilities of the Building to be used for any purpose  other  than  that  for  which  they  were  constructed,  or  dispose  of  any  garbage  or  other  foreign  substance  therein,  whether through the utilization of so-called “disposal” or similar units, or otherwise.                  I.     To the extent that any insurance premium payable by Landlord, the Board, Overlandlord  and/or any Mortgagee is increased as a result of the operation of the Dining Facility, Tenant shall pay to Landlord,  as additional rent, the amount of such increase(s) within thirty (30) days after Landlord's demand therefor from time  to time.  For so long as the Dining Facility is being used or operated, all of the provisions of this Lease in respect of  Tenant's  insurance  obligations  shall  expressly  apply  to  such  use  and  operation.  If  and  to  the extent  that  any  Landlord’s, the Board’s, any Overlandlord’s and/or any Mortgagee’s insurance policies covering the Building will  not include (or expressly excludes) liability, loss, injury or damage relating to the Dining Facility (or other portions  of  the Building) as  a  result  of  the  use  of  the  Dining  Facility, Tenant  shall  not  be  permitted  to  operate  a  Dining  Facility  in  the Demised  Premises  unless  and  until  Tenant  obtains  the  necessary  insurance  policies  therefor  and  names Landlord, the Board, any Overlandlord, any Mortgagee and any other parties required by the Condominium  Documents (subject to the Board SNDA and the Board Consent) as additional insureds thereon.                  J.     Subject  to  the  provisions  of  Section  4.05  below,  under  no  circumstances  shall  Tenant  sublet the portion, if any, of the Demised Premises being used as the Dining Facility for the purpose of having such  sublessee operate the Dining Facility, and notwithstanding anything contained in Article 10 below which may be to  the contrary, any subletting or attempted subletting of such portion of the Demised Premises for such purpose shall  be null and void.  Under no circumstances shall Tenant assign Tenant's rights to use the Dining Facility independent  from any assignment of Tenant's interest in this Lease.                                                 -20-    NY 78267766v2 

 

               K.     Supplementing  the  provisions  of  Subsection  4.04E  above,  if  Landlord’s  cooperation  is  reasonably required in connection with Tenant’s obtaining or maintaining approvals of governmental authorities to  operate the Dining Facility for the Dining Use, and at such time, Tenant shall be in default (after Tenant shall have  theretofore been given notice of any such default) with respect to any of the monetary or material non-monetary  obligations of Tenant under this Lease, then Landlord’s obligation to so cooperate shall be deemed suspended until  such time as Tenant shall have cured such default.  If Tenant shall have cured such default within the applicable cure  period, then Landlord’s obligation to so cooperate shall be deemed reinstated.            Section 4.05   The retention by Tenant of any third-party to operate the Dining Facility for the Dining  Use shall be permitted and shall not be a breach by Tenant of Tenant’s obligations under Article 10 (unless Tenant  charges a third-party operator a fee to operate the Dining Facility), but shall be subject to the applicable provisions  of this Lease (including Section 5.04 below) and to Landlord’s prior approval (which approval, except as aforesaid,  shall not be unreasonably withheld or delayed).  Any third-party operator so retained by Tenant shall be deemed to  be acting on Tenant’s behalf.  No such third-party operator shall have any rights, title or interest in, to or under the  Demised Premises or any other portion of the Building, or any rights or remedies against Landlord, and Tenant shall  indemnify and hold Landlord harmless from and against any and all, actions, proceedings, liabilities, obligations,  claims,  damages,  deficiencies,  losses,  judgments,  suits,  expenses  and  costs  (including  court  costs  and  reasonable  third-party  legal  fees  and disbursements  for  which  Landlord  is  or  may  be  liable)  arising  under  or  out  of  or  in  connection with or resulting from the acts or omissions of any such third-party operator.  Tenant shall remain fully  liable  for  the  payment  of  Fixed  Rent  and  additional  rent  due  and  to  become  due  under  this  Lease  and  for  the  observance, performance and compliance with all of the terms, covenants and conditions contained in this Lease on  Tenant's  part  to  observe,  perform  or  comply  with,  and  all  acts  or  omissions  by  any such third-party  operator  or  anyone claiming by, through or under any such third-party operator which shall be a default under this Lease, shall  be deemed to be a default by Tenant.  Tenant’s right to have a third-party operator manage the Dining Facility shall  not be deemed a waiver of Landlord's rights under this Lease to consent to the use or occupancy of the Demised  Premises (or any portion thereof) by any other person or entity or to the assignment of this Lease or the subletting of  the Demised Premises (or any portion thereof).                                               ARTICLE 5.                                                                             ALTERATIONS; LIENS; TENANT’S PROPERTY          Section 5.01                     A.     Except  as  otherwise  expressly  provided  in  this  Section  5.01,  Tenant  shall  make  no  Alterations  in  or  to  the  Demised  Premises,  including  removal  or  installation  of  partitions,  doors,  electrical  installations,  plumbing  installations,  water  coolers,  heating,  ventilating  and  air-conditioning  or  cooling  systems,  units or parts thereof or other apparatus, whether structural or non-structural, without the prior  written consent of  Landlord, and (if required by the Condominium Documents, but subject to the Board SNDA and the Board Consent)  the  Board,  and  then  only  by  contractors  or  mechanics  approved  in  writing  by  Landlord  and  (if  required  by  the  Condominium Documents, but subject to the Board SNDA and the Board Consent) the Board.  Notwithstanding  anything to the contrary contained in this Section 5.01, but subject to the terms of the Condominium Documents, the  Board SNDA and the Board Consent: (i) Tenant shall have the right, on not less than five (5) Business Days’ prior  notice  to  Landlord,  but without  being  required  to  obtain  Landlord’s  consent,  to  perform  Alterations  in  or to  the  Demised Premises that (x) do not require the issuance of a building permit or any other governmental authorization,  or (y) involve only the  installation  of  any  information  technology or  office equipment (including  printers,  televisions,  etc.), and  do  not  involve connection  to  the  Building’s electrical  or  mechanical  systems, or (z)  are  decorative  in  nature  (e.g.,  painting  and the  installation  or  removal  of  carpeting  or  wall  coverings;  collectively,  “Decorative Changes”), provided that such Decorative Changes are made entirely within the Demised Premises and  do not cost in excess of $2,000,000 in the aggregate (which amount shall increase by 3% as of January 1 of each  year during the Lease Term) over a rolling six (6) month period, but Tenant shall nonetheless comply with all of the  other  applicable  requirements  governing  Alterations  set  forth in  this Article  5,  and  (ii) Landlord  shall  not  unreasonably withhold or delay consent to any Alterations proposed by Tenant, provided that Tenant shall comply  with  all  of  the  applicable  requirements  of  this  Article  5;  it  being  agreed,  however,  that Landlord  may  withhold  consent  (and  Landlord’s  withholding  of  such  consent  shall  be  deemed  reasonable)  to  the  performance  of  any  Alterations or to any Tenant’s Plans prepared in connection therewith, only if (a) an engineer reasonably selected by                                                  -21-    NY 78267766v2 

 

Landlord and  reasonably  approved  by  Tenant  shall  reasonably  determine  that  the  performance  of  such  proposed  Alteration in accordance with any of Tenant’s Plans prepared in connection therewith, as the case may be, are not  consistent  with  good  engineering  practice, or  (b) such  Alterations would  have  more  than  a  de  minimis  adverse  impact on any structural element of the Building or Building Systems.                      B.     All Alterations (other than Landlord’s Work and Landlord’s Additional Work):  (i) shall  be made at Tenant’s own cost and expense, (ii) shall comply with, and shall be performed at such times and in such  manner as set forth in, the Rules and Regulations, as same may be amended by Landlord or the Board (subject to the  Board SNDA and the Board Consent) from time to time; provided, however, that Tenant shall not be bound by any  such  amendment by  Landlord that  (a)  imposes,  except  to  a  de  minimis  extent,  any  new  or  increased  costs  or  financial  obligations  on  Tenant  (unless  as  a  result  of  compliance  with  any  Legal  Requirements) or (b) adversely  affects (to  more  than  a  de minimis  extent) the  conduct  of  Tenant’s  business  in  the  Demised  Premises,  (iii) shall  comply with all Legal Requirements and all orders, rules and regulations of Insurance Boards of which Tenant shall  have received notice (but only if compliance with such orders, rules or regulations is generally required by prudent  owners  of  Comparable  Buildings),  (iv) shall  be  made  promptly  and  in  a  good  and  workmanlike  manner,  and  (v) shall  not  affect  the exterior appearance  of  the Building,  it  being  Landlord’s  intention  to  keep  the  exterior  appearance  of  the  Building  uniform (and,  in  pursuance  thereof,  Landlord  shall  have  the  right  to  approve (such  approval not to be unreasonably withheld or delayed) the appearance of all such Alterations which would be visible  from the street level of the Building or, with respect to any partial floor that is made part of the Demised Premises,  the common elevator lobby of such floor).  In order to ensure, maintain and control the quality and standards of  materials and workmanship in, and the effective security of, the Building and the 7-21 Condominium, including the  Demised Premises, Tenant acknowledges that it is reasonable to require Tenant, and Tenant hereby covenants and  agrees,  to use  only general  contractors,  construction  managers  and  subcontractors  (collectively,  “Tenant’s  Contractors”)  from  the  Approved  Contractor  List  or  as  otherwise  approved  by  Landlord  pursuant  to  Subsection  5.01D  below,  and  (if required  by  the  Condominium  Documents,  but  subject  to  the  Board  SNDA  and  the  Board  Consent) the Board; provided, however, that any Alterations to the building management or fire alarm systems of  the  Building  shall  be  performed  only  by  contractor(s)  designated  by Landlord.   Except  as  otherwise  provided  herein, Landlord expressly reserves the right to exclude from the Building, including the Demised Premises, any  person attempting to perform any work or act as a Tenant’s Contractor that is not on the Approved Contractor List,  an  Alternate  Tenant’s  Contractor  or  otherwise  approved  by  Landlord and  (if  required  by the  Condominium  Documents, but subject to the Board SNDA and the Board Consent) the Board.                  C.     Except as otherwise expressly provided herein, the provisions of this Article 5 shall apply  to Tenant’s Initial Improvements, as well as to all future Alterations.                  D.     A list of currently approved contractors and major trade subcontractors is annexed hereto  as Exhibit “L”.  The contractors and subcontractors identified on said list shall be deemed to be approved only for  the  performance  of  Tenant’s  Initial  Improvements  and not  for any  future  Alterations.  Following  completion  of  Tenant’s Initial Improvements, Landlord or the Board (if permitted by the Condominium Documents, but subject to  the Board SNDA and the Board Consent) shall have the right to revise said list in any manner that Landlord or the  Board (if permitted by the  Condominium  Documents,  but  subject  to  the  Board  SNDA  and  the  Board  Consent)  deems  appropriate; provided,  however,  that  (i)  Landlord  shall  not  have  the  right  to  disapprove  any  contractor  initially listed on said list for so long as such contractor remains under contract with Tenant with respect to the same  work  that  Tenant  initially  hired  such  contractor to  perform  and  (ii)  Landlord  shall,  for  the  entire  Lease  Term,  maintain a list of not less than five (5) approved general contractors and three (3) subcontractors for each of the  major trades, whose fees shall be reasonably competitive in the marketplace and who shall not be affiliated with  Landlord. The list of approved contractors and major trade subcontractors, as revised from time to time, is referred  to in this Lease as the “Approved Contractor List”.  At Tenant’s request, Landlord shall furnish to Tenant a copy of  the then current Approved Contractor List from time to time during the Lease Term.  If Tenant shall wish to use a  contractor or subcontractor not on the then Approved Contractor List to perform an Alteration (any of the foregoing,  if approved by Landlord and (if required by the Condominium Documents, but subject to the Board SNDA and the  Board Consent) the Board, an “Alternate Tenant’s Contractor”), Tenant shall obtain Landlord’s and (if required by  the Condominium Documents, but subject to the Board SNDA and the Board Consent) the Board’s approval of such  proposed Alternate Tenant’s Contractor prior to retaining the services of such party (which approval, in the case of  Landlord, shall not be unreasonably withheld, conditioned or delayed).  Any Alternate Tenant’s Contractor shall be  licensed and in good standing in New York City.  Landlord shall approve or reject (with a reasonable explanation                                                  -22-    NY 78267766v2 

 

for such rejection), any Alternate Tenant’s Contractor within ten (10) days following Landlord’s receipt of Tenant’s  request for such approval.  If Landlord fails to approve an Alternate’s Tenant’s Contractor (or fails to respond to  Tenant’s  request  for  such  approval),  Tenant  shall  have  no  right  to  retain  the  services  of  such  Alternate  Tenant’s  Contractor and shall use a contractor or subcontractor on the then Approved Contractor List for the performance of  such work.            Section 5.02                     A.     Prior  to  commencing  the  performance  of  any  Alterations  (other  than  Decorative  Changes),  Tenant  shall  furnish  to  Landlord and  (if  required  by  the  Condominium  Documents,  but  subject  to  the  Board SNDA and the Board Consent) the Board:                         (i)     Subject  to  the  provisions  of  Subsection  5.01D  above, Tenant’s  Plans  of such  proposed Alterations (to be prepared by a licensed architect or engineer engaged by Tenant, at the cost and expense  of  Tenant and  which  architect  or  engineer  shall  be  subject  to  Landlord’s  and  (if  required  by  the  Condominium  Documents, but subject to the Board SNDA and the Board Consent) the Board’s prior approval, which approval  Landlord shall not unreasonably withhold, condition or delay, subject to the provisions of Subsection 5.01A above),  in sufficient detail to be accepted for filing by the New York City Department of Buildings (or any successor or  other governmental agency serving a similar function),  and Tenant shall not commence the performance thereof  unless and until (x) Landlord shall have approved Tenant’s Plans, which approval Landlord shall not unreasonably  withhold,  condition or delay,  subject  to  the last  sentence of  Subsection 5.01A  above, and  (y)  (if required  by  the  Condominium Documents, but subject to the Board SNDA and the Board Consent) the Board has approved Tenant’s  Plans;                         (ii)    A  certificate  evidencing  that  Tenant  (or  Tenant’s  Contractors)  has  (have)  procured worker’s compensation insurance covering all persons employed in connection with the Alteration who  might assert claims for death or bodily injury against Overlandlord, Landlord, the Board, Tenant, the Land and/or  the Building;                         (iii)   Such additional personal injury and property damage insurance (over and above  the insurance required to be carried by Tenant pursuant to the provisions of Section 8.03 below), and builder’s risk,  fire and  other  casualty  insurance  as  Landlord or  the  Board (if permitted by the  Condominium  Documents,  but  subject  to  the  Board  SNDA  and  the  Board  Consent) may  reasonably  require  in  connection  with  the  Alteration,  provided that, with respect to Landlord only, such additional insurance is then customarily required by reasonably  prudent landlords of Comparable Buildings;                         (iv)    Such permits, authorizations or consents as may be required by any applicable  Legal Requirements (which permits, authorizations or consents may be self-certified, if and to the extent permissible  under the applicable Legal Requirements, by Tenant’s architect), all of which shall be obtained at Tenant’s cost and  expense; provided,  however,  that  (x)  no  Tenant’s  Plans  or  applications  shall  be  filed  by Tenant with  any  governmental authority without Tenant first obtaining Landlord’s and (if required by the Condominium Documents,  but subject to the Board SNDA and the Board Consent) the Board’s consent thereto, which consent Landlord shall  not unreasonably withhold, condition or delay, subject to the last sentence of Subsection 5.01A hereof, and (y) if  Tenant  shall  so  request,  and  if  a  proposed  Alteration  cannot  be  effected  otherwise,  Landlord  shall  join  in  applications  for  any  permits, approvals  or  certificates required  to  be  obtained by  Tenant  in order  to  perform  any  permitted Alterations and shall otherwise reasonably cooperate with Tenant in connection therewith, provided that  Landlord  shall  not  be  required  to  incur  any  expense  thereby  (except  if  and  to the  extent  that  Landlord  shall  be  reimbursed therefor pursuant to the provisions of Subsection 5.02B below), and Tenant shall indemnify and hold  Landlord harmless from and against any and all liability and damages suffered by Landlord in connection therewith.   Notwithstanding  anything  herein  to  the  contrary,  Landlord  shall,  at  its  sole  cost  and  expense,  cure  any  Building  violation which prevents or hinders Tenant’s ability to obtain any such permits, authorizations or consents and, if  such  violation  results in  an actual delay  in Tenant’s  commencement  or  performance of  Tenant’s  Initial  Improvements, then same shall constitute a Landlord delay and the Rent Commencement Date shall be postponed by  one (1) day for each calendar day that Tenant is so delayed following the later of the Commencement Date and the  Delay Inception Date; and                                                  -23-    NY 78267766v2 

 

                      (v)     Except with respect to Decorative Changes, a written letter of authorization, in  form reasonably satisfactory to Landlord, signed by all architects, engineers, surveyors, designers and contractors  who become involved in such Alterations and who have filed or intend to file any drawings, plans and/or permits  with any governmental authorities with respect to such Alterations, which shall confirm that, at Landlord’s request  (which request shall only be made if an Event of Default has occurred and is then continuing), any and all of their  respective  drawings,  plans  and  permits  are  to  be  removed  or  withdrawn  from  any  filing  with  governmental  authorities.                  B.     In the event that Landlord and/or the Board shall submit Tenant’s Plans for any Specialty  Alterations (including  in  connection  with  Tenant’s  Initial  Improvements) to  a  third-party  (i.e.,  not  in-house)  architects and/or engineers hired by Landlord and/or the Board to review same, Tenant shall reimburse Landlord  and/or the Board, in each case as additional rent for Landlord’s and/or the Board’s actual and reasonable out-of- pocket  expenses  incurred  in  connection  with  such  review  within  thirty  (30)  days  after  Landlord’s  rendition  of  a  statement therefor to Tenant, which statement shall be accompanied by reasonable evidence of any such expense.   Landlord shall use commercially reasonable efforts to coordinate Landlord's review of such Tenant’s Plans with the  Board's review thereof so as to avoid duplication of the cost and timing of such review.                    C.     Tenant shall keep records (including contracts and work orders) of all Alterations (other  than Decorative Changes) performed by Tenant or by Persons Within Tenant’s Control costing in excess of $50,000  (which amount shall increase by 3% as of January 1 of each year during the Lease Term), for a period not to exceed  three  (3)  years  following  the  completion  of  such  Alteration,  and  shall  furnish  to  Landlord  copies  thereof  within  thirty  (30)  days  following  Landlord’s request  therefor.  Landlord’s  review  of,  and/or  any  failure  by  Landlord  to  object  to,  any  contract  or  work  order contained  in  such  records shall  not:   (i) be  construed  as  an  approval  by  Landlord of such contract or work order or the contents thereof, (ii) impose any liability on Landlord in connection  therewith,  or  (iii) relieve  Tenant  of  any  obligation  of  Tenant  with  respect  to  such  Alterations  or  the  Demised  Premises as otherwise set forth in this Lease.                  D.     Within ninety (90) days following completion of any Alteration (other than Decorative  Changes)  and  at  Tenant’s  own  expense:   (i)  Tenant  shall  deliver  to  Landlord  (a)  two  full  and  complete  sets  of  transparencies of “as-built” drawings with respect to (x) all structural Alterations performed by Tenant, and (y) with  respect to non-structural Alterations performed by Tenant if required by applicable Legal Requirements or (b) an  electronic  copy  of  such  “as-built”  drawings  prepared  on  an  AutoCAD  System  (or  such  other  commercially  customary  system  or  medium as  Landlord  may  reasonably  designate);  or  (ii)  if  Tenant  shall  not  be  obligated  to  deliver “as-built” drawings described in clause (i) above pursuant to the provisions thereof, then Tenant shall deliver  to Landlord Tenant’s Plans stamped “final” by Tenant’s architect and marked to reflect field notes and incorporating  all changes and revisions thereto.  In addition, as promptly as reasonably practicable following the completion of all  Alterations, Tenant  shall  obtain  final  approvals  of  the Alterations (including letters  of  completion  or  amended  certificates of occupancy for each and every permit application filed by or on behalf of Tenant) by all governmental  authorities  having  or  asserting  jurisdiction (including  the New  York  City  Department of  Buildings) if  and to  the  extent the same are required by any such governmental authorities, and Tenant shall furnish Landlord with copies  thereof unless the same shall be available for public viewing on the New York City Department of Buildings BIS  system.                    E.     In  connection with  proposed  Alterations  to  be  performed  by  Tenant  that  require  Landlord’s  approval hereunder,  Landlord  shall use  commercially  reasonable  efforts  to review  (without  charge  to  Tenant other  than  in  connection  with  Specialty  Alterations) Tenant’s  final plans and  specifications  for  such  Alterations within ten (10) Business Days after Tenant shall have submitted to Landlord a complete set of such final  plans and specifications, in detail sufficient to (x) enable the New York City Department of Buildings to issue a  building notice or permit (if such issuance is required by Legal Requirements), and (y) identify all materials to be  incorporated in such work (collectively, “Tenant’s Plans”); provided, however, that Tenant shall not be required to  identify the sub-composition of the primary materials to be incorporated in such work unless requested by Landlord  pursuant to the immediately following sentence.  Landlord shall notify Tenant within said 10-Business Day period  (a) that Landlord consents to Tenant’s Plans, (b) that Landlord requires additional information or details in order to  evaluate  Tenant’s  Plans,  or  (c)  that  Landlord  rejects  Tenant’s  Plans,  in  which  case  Landlord  shall  identify  in  reasonable  detail  Landlord’s  reason(s) for  refusing  to  consent  to  Tenant’s  Plans  and/or  required  revision(s)  to  Tenant’s Plans and those portions of Tenant’s Plans or revised plans so disapproved; it being agreed, however, that                                                  -24-    NY 78267766v2 

 

Landlord shall have no liability to Tenant for Landlord’s failure to so notify Tenant within said 10-Business Day  period, but the provisions of the last two sentences of this Subsection 5.02E shall apply thereto.  Tenant agrees that  any  review  or  approval  by  Landlord  of  any  Tenant’s  Plans  is  solely  for  Landlord’s  benefit, and  without  any  representation or warranty whatsoever to Tenant with respect to the adequacy, correctness or efficiency thereof or  otherwise.  The granting by Landlord of Landlord’s approval of any Tenant’s Plans shall in no way constitute or be  deemed to constitute a judgment or acknowledgment by Landlord as to the compliance of such Tenant’s Plans with  any applicable Legal Requirements.  If Landlord shall deliver a notice to Tenant denying approval of Tenant’s Plans  within ten (10) Business Days after Landlord’s receipt thereof and Tenant delivers a revised (and complete pursuant  to the foregoing requirements of this Subsection 5.02E) set of Tenant’s Plans to Landlord within ten (10) Business  Days  after  Landlord  delivers  such  notice,  then  Landlord  shall use commercially  reasonable  efforts  to review  (without charge to Tenant) Tenant’s revised plans and specifications within five (5) Business Days after Tenant shall  have submitted such revised plans and specifications to Landlord.  If Landlord shall fail to respond to Tenant in  connection  with  Tenant’s  requested  approval  of  such  Tenant’s  Plans  within  (i)  ten  (10)  Business  Days  after  Landlord’s initial receipt thereof, or (ii) five (5) Business Days after Landlord’s receipt of revised plans, as the case  may be, then Tenant may deliver a second notice to Landlord requesting Landlord’s approval thereof.  If Landlord  shall fail to respond to Tenant within five (5) Business Days after Landlord’s receipt of said second notice, then, as  Tenant’s  sole and  exclusive remedy  in  connection  therewith,  Landlord  shall  be  deemed  to  have  approved  such  Tenant’s Plans, provided that such second notice shall have borne the following legend typed in bold, capital letters  at the top:  “IF LANDLORD SHALL FAIL TO RESPOND TO THIS REQUEST FOR APPROVAL WITHIN  FIVE  (5)  BUSINESS  DAYS  AFTER  LANDLORD’S  RECEIPT  OF  THIS  REQUEST  FOR  APPROVAL,  LANDLORD  SHALL  BE  DEEMED  TO  HAVE  APPROVED  THE  PLANS  AND  SPECIFICATIONS  DELIVERED  TOGETHER  HEREWITH  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF  SUBSECTION 5.02E OF THE LEASE.”  Upon Tenant’s request, Landlord agrees to review Tenant’s preliminary  plans and specifications with respect to an Alteration and provide any comments in connection therewith; provided,  however, that Tenant shall nonetheless comply with the provisions of this Article 5, including providing Tenant’s  Plans to Landlord for review and approval in accordance with this Subsection 5.02E.                  F.     Tenant shall be permitted to access the Demised Premises on March 1, 2021 in advance  of the Commencement Date (subject to the provisions of this Lease, including Section 13.08 hereof) for the purpose  of  planning  and  coordinating  Tenant’s  Initial  Improvements  and  Tenant’s  furniture,  fixtures  and  equipment,  and  installing  telecommunications  equipment  and  wiring  and cabling (such  work,  collectively,  “Tenant’s  Initial  Installations”),  subject,  however,  to  the  following  conditions:   (i)  Tenant  shall  not  perform  any  part  of  Tenant’s  Initial  Installations  if  the performance  thereof  would  result  in  any  Tenant’s  Installations  Delay;  and (ii)  Tenant’s  maintenance,  repair, insurance  and  indemnity  obligations  under  this  Lease  shall  begin  (and  thereafter  remain  in  effect for the remainder of the Lease Term) on the date that Tenant or any Persons Within Tenant’s Control shall  have  first  entered  upon  the  Demised  Premises  for  the  performance  of  any  part  of  Tenant’s  Initial  Installations  (provided that no maintenance obligations shall begin with respect to Landlord’s Work or Landlord’s Additional  Work, as applicable, until Landlord has delivered the same to Tenant substantially completed).  If, notwithstanding  the  foregoing,  Tenant’s  performance  of  any  part  of  Tenant’s  Initial  Installations  results  in  Tenant’s  Installations  Delay,  then,  upon Tenant’s  receipt  of  notice  from  Landlord  as  to  the  same,  Tenant  shall  immediately  stop  any  portion  of  the  work  or  other  activity  that  causes  such  Tenant’s  Installations  Delay.   For  the  purposes  hereof,  “Tenant’s Installations Delay” shall be deemed to have occurred if any work or other activity being performed by  Tenant or any Persons Within Tenant’s Control as part of Tenant’s Initial Installations interferes with or delays the  performance  of  any  part of  Landlord’s  Work,  any  other  work  that  Landlord  is  required  to  perform  in  order  to  complete  Landlord’s  Work and/or  Landlord’s  Additional  Work; provided,  however,  that an  act  or  omission  of  Tenant  or  any  Persons  Within  Tenant’s  Control  shall  not  constitute a  “Tenant’s  Installations  Delay”  hereunder  unless Landlord shall have delivered notice to Tenant that such act or omission constitutes a Tenant Installations  Delay.  If Tenant’s entry upon the Demised Premises prior to the Commencement Date shall be limited to activities  in the nature of inspections, taking measurements and making plans, then the foregoing provisions of this Subsection  5.02F shall not be construed to apply to such entry. The Commencement Date of the Lease shall not be deemed to  have occurred and Tenant’s obligations under this Lease (except as otherwise expressly set forth in this Subsection  5.02F) shall not be deemed to have commenced as a result of such early access and performance of Tenant’s Initial  Installations.                   G.      Notwithstanding  anything to  the  contrary  set  forth  in  Subsection  5.02E  above, but  subject to the provisions of the Board Consent and Board SNDA, Tenant acknowledges and agrees that none of the                                                  -25-    NY 78267766v2 

 

deemed  consent  provisions  set  forth  herein  shall  apply  to  any  proposed  Alteration that, pursuant  to  the  Condominium Documents, are required to be approved by the Board.  Provided that Tenant shall have complied  with  all  of  the  relevant  provisions  of  the  Condominium  Documents (subject  to  the  Board  SNDA  and  the  Board  Consent) relating to obtaining the Board’s consent in the case of a proposed Alteration that requires the consent of  the Board, Landlord shall use commercially reasonable efforts to cause the Board to promptly respond to Tenant’s  request that the Board consent to such proposed Alteration, subject to the provisions of the Board Consent and the  Board SNDA.  Notwithstanding anything to the contrary contained herein (including Subsection 18.01A), solely in  connection  with  the  performance  of  Tenant’s Initial  Improvements and  Tenant’s  initial  move  into  the Demised  Premises, Landlord shall provide to Tenant up to two hundred seventy (270) hours in the aggregate of after-hours  freight elevator service (including the non-exclusive use of the loading dock) free of charge for Tenant’s use.  In  addition, Landlord shall provide to Tenant an additional ninety (90) hours of after-hours freight elevator service,  including the non-exclusive use of the loading dock, with respect to each full floor of Offer Space, Expansion Space  or ROFR Space leased by Tenant pursuant to the terms of this Lease.                    H.     Provided that Tenant shall comply with all Legal Requirements pertaining thereto, Tenant  shall have the right, on notice to Landlord at Tenant’s own cost and expense, to install (subject to the provisions of  this  Article  5)  a  security  alarm  and/or  key-card  locking  system  (“Tenant’s  Security  System”)  in  and  governing  access  to  the  Demised  Premises;  provided,  however,  that  Tenant’s  Security  System  shall  be  integrated  into the  Building Systems then in effect as of the date of Tenant’s installation of Tenant’s Security System (so as to allow a  single key-card for access by Tenant’s employees to the Demised Premises).          Section 5.03                     A.     In no event shall any material or fixtures be incorporated in or to the Demised Premises  in connection with any Alteration that is subject to any lien, encumbrance, chattel mortgage, security interest, charge  of any kind whatsoever, or is subject to any conditional sale or other similar or dissimilar title retention agreement.   The  foregoing  prohibition  shall  not  apply  to  Tenant's  personal  property, or  standard  office  equipment  that  is  customarily leased or financed, including any Tenant’s Movable Property and property which Tenant has a right to  remove from the Demised Premises pursuant to the terms of this Lease (provided that any lienor’s right to access the  Premises shall be subject to a commercially reasonable access agreement).                  B.     Tenant shall not create or permit to be created any lien, encumbrance or charge (levied on  account of any taxes or any mechanic’s, laborer’s or materialman’s lien, conditional sale, title retention agreement or  otherwise) upon the Land or the Building or any part thereof or the income therefrom arising from any failure of  Tenant to  pay any  monies  due  or  alleged  to  be  due  from  Tenant (except  as  expressly  permitted  pursuant  to  the  provisions  of  Subsection  5.03A  above).  Tenant  shall  take  all  steps  necessary  under  local  laws  to  prevent  the  imposition  of  such  a  lien,  encumbrance  or  charge on the  FTI  Units,  the  7-21  Condominium,  the  Land  or  the  Building.                  C.     If any lien, encumbrance or charge referred to in this Section 5.03 shall at any time be  filed against the Demised Premises, the 7-21 Condominium, the Land or the Building or any part thereof, for work  claimed to have been done for or materials claimed to have been furnished to Tenant, then Tenant, within thirty (30)  days after receipt of notice of the filing thereof and at Tenant’s own cost and expense, shall cause the same to be  discharged of record, either by paying the amount claimed to be due or by procuring the discharge of such lien by  deposit  or  by  bonding  proceedings,  and  Tenant  shall  indemnify  Landlord  against  and  defend  and  hold  Landlord  harmless  from  all  costs,  expenses,  liabilities, losses,  fines  and penalties,  including reasonable  attorneys’ fees  and  disbursements,  resulting  therefrom.   If  Tenant  shall  fail  to  cause  such  lien  to  be  discharged  within  the  aforesaid  period, then, in addition to any other right or remedy, Landlord may, but shall not be obligated to, upon ten (10)  days’ prior notice to Tenant, to discharge the same either by paying the amount claimed to be due or by procuring  the discharge of such lien by deposit or by bonding proceedings, and in any such event Landlord shall be entitled, if  Landlord so elects, to compel the prosecution of an action for the foreclosure of such lien by the lienor and to pay  the  amount  of  the  judgment  in  favor  of  the  lienor  with  interest,  costs  and  allowances.   Any  amount  so  paid  by  Landlord and all costs and expenses incurred by Landlord in connection with the foregoing, together with interest  thereon at the Interest Rate, shall constitute additional rent payable by Tenant under this Lease, which additional rent  shall  be  paid  by  Tenant  to Landlord  within  thirty  (30)  days  after  Landlord’s  rendition  of  a  statement  therefor  to  Tenant, which statement shall be accompanied by reasonable evidence of any such expense.                                                  -26-    NY 78267766v2 

 

               D.       Nothing contained in this Lease shall be deemed or construed in any way as constituting  the consent (except as otherwise expressly set forth in this Article 5) or request of Landlord, express or implied by  inference or otherwise, to any contractor, subcontractor, laborer or materialman for the performance of any labor or  the furnishing of labor or materials for the specific improvement, alteration to or repair of the Demised Premises or  any part thereof, nor as giving Tenant any right, power or authority to permit the filing of any lien against the Land,  the Building, the Condominium (or any Unit(s) thereof), the Demised Premises or any part thereof by reason of the  rendering of any services or the furnishing of any materials for any Alterations performed by or on behalf of Tenant  in or about the Demised Premises.  Notice is hereby given that Landlord shall not be liable for any work performed  or to be performed at the Demised Premises for Tenant or any subtenant, or for any materials furnished or to be  furnished at the Demised Premises for Tenant or any subtenant upon credit, and that no mechanic’s or other lien for  such work or materials shall attach to or affect the estate or interest of Landlord in and to the 7-21 Condominium,  Land,  Building  or  Demised  Premises.   Landlord  shall  have  the  right  to  post  and  keep  posted  on  the  Demised  Premises any notices that Landlord may be required to post for the protection of Landlord, the 7-21 Condominium,  the Land, the Building and/or the Demised Premises from any lien.                  E.     Tenant  shall  have  no  power  to  do  any  act  or  make  any  contract  that  creates any lien,  mortgage or other encumbrance upon the reversion or other estate of Landlord or of any interest of Landlord in the  Demised Premises.            Section 5.04   Tenant shall not at any time, either directly or indirectly, employ any contractors or labor  or use any materials in the Demised Premises if the employment or use of such contractors or laborer or materials  shall,  in  Landlord’s good  faith  opinion, create  any  work  stoppage, picketing, labor  disruption  or  any  other  jurisdictional dispute with other contractors or labor engaged by Tenant or Landlord or others in the construction,  maintenance or operation of the Building or any part thereof.  In the event of any such labor disharmony, Tenant  shall immediately cause all contractors and laborers to stop any work or other activity causing such disharmony if  Landlord shall notify Tenant that such work or activity by such contractors or laborers is resulting in such labor  disharmony, it being agreed that Landlord shall contact Tenant to discuss in good faith such labor disharmony.  At  the time that Tenant requests Landlord’s approval of a proposed Tenant’s Contractor, and provided that Tenant shall  then request that Landlord furnish such advice, Landlord shall endeavor to advise Tenant if Landlord knows that  Tenant’s Contractor will cause Tenant to violate the provisions of this Section 5.04.          Section 5.05   Landlord  shall  not  be  liable  for  any  failure  or  diminution  of  any  Building  Systems  or  services, or for any damage to Tenant’s property or the property of any other person, caused by Alterations made by  Tenant  or  by  Persons  Within  Tenant’s  Control,  notwithstanding  Landlord’s  consent  thereto  or  to  Tenant’s  Plans  therefor. Tenant shall promptly correct any Alteration made by Tenant or by Persons Within Tenant’s Control that  was not performed in accordance with Tenant’s Plans, and shall repair any and all damage caused thereby.          Section 5.06                     A.     All  movable  property,  equipment  (including  audio-visual  equipment),  furniture,  furnishings  and  trade fixtures  furnished by  or  at  the  expense  of  Tenant,  other  than  those  affixed  to  the  Demised  Premises  so  that  they  cannot  be  removed  without damage beyond  a  de  minimis  extent (collectively,  “Tenant’s  Movable Property”), shall remain the property of Tenant, and may be removed by Tenant from time to time prior to  the  expiration  of  the  Lease  Term.  All items  of  Tenant’s  Movable  Property  shall  be  removed  by  Tenant in  accordance  with  all  Legal  Requirements on  or  before  the  expiration  (or  sooner  termination)  of  the  Lease  Term,  unless Tenant notifies Landlord (“Tenant’s Property Notice”) no later than thirty (30) days prior to the expiration or  sooner termination of the Lease Term specifying any items of Tenant’s Movable Property that Tenant does not wish  to remove or stating that Tenant wishes to abandon all of Tenant’s Movable Property, in which case Landlord shall  have the right to retain or dispose of the same at Landlord’s own cost and expense with no liability to Tenant after  the expiration or sooner termination of the Lease Term; provided, however, that notwithstanding the foregoing, if  Tenant does not deliver Tenant’s Property Notice to Landlord, Tenant shall have the right to leave in the Demised  Premises a small amount of minor and incidental items of Tenant’s Movable Property (“Incidental Items”) without  the  foregoing  constituting  a  breach  of  Tenant’s  obligations  hereunder  or  otherwise  causing  Tenant  to  incur  any  liability or  paying  the  Occupancy  Payment  or  any  penalties  under  Subsection  25.02B, subject,  however,  to  the  following conditions:  (i) Tenant’s maintenance, repair, insurance and indemnity obligations under this Lease shall  continue until the date upon which all of such Incidental Items have been removed from the Demised Premises in                                                  -27-    NY 78267766v2 

 

accordance with the provisions of this Subsection 5.06A, and (ii) Tenant shall remove all such Incidental Items, at  Tenant’s sole cost and expense, no later than thirty (30) days following the expiration or sooner termination of this  Lease; it being agreed that, if any Incidental Items are not removed from the Demised Premises within such thirty  (30)-day period, Tenant shall thereafter be deemed to be holding over in the Demised Premises and shall be liable  for all damages provided under this Lease in connection with such holdover, including pursuant to Article 25 hereof.   Landlord shall make available to Tenant the freight elevator in connection with Tenant’s move-out of the Demised  Premises at the expiration or earlier termination of this Lease upon and subject to (including the charges therefor set  forth therein) the terms of Subsection 18.01A hereof.  If Tenant (I) fails to deliver Tenant’s Property Notice and then  fails to remove Tenant’s Movable Property upon the expiration or earlier termination of this Lease or (II) fails to  remove all of the Incidental Items no later than thirty (30) days following the expiration or earlier termination of this  Lease, then, as to such property, Landlord may, at Tenant’s expense:  (a) remove same, (b) cause the same to be  placed in storage, and (c) repair any damage caused by said removal.  Tenant shall, upon demand and as additional  rent, reimburse Landlord for all of the reasonable out-of-pocket expenses incurred by Landlord in connection with  the  foregoing.   In  addition, any  items  of Tenant’s  Movable  Property  or  Incidental  Items not  removed by  Tenant  pursuant to this Subsection 5.06A may, at the election of Landlord, be deemed to have been abandoned by Tenant,  and  Landlord  may  retain  and  dispose  of  some  or  all  of  said  items  without  any  liability  to  Tenant  and  without  accounting to Tenant for the proceeds thereof.                  B.     All Alterations made by or on behalf of either Landlord or Tenant (including all paneling,  decorations, partitions, railings, mezzanine floors, galleries and the like), which are affixed to the Demised Premises  so that they cannot be removed without damage beyond a de minimis extent shall (to the extent Tenant shall have  paid therefor) be the property of Tenant for federal, state and local income tax purposes, and Tenant shall have the  right to depreciation deductions and/or tax credits with respect thereto but, upon the expiration or sooner termination  of  the Lease  Term,  all  of  such Alterations shall, unless Landlord  elects  otherwise  in  accordance  with  the  terms  hereof, become the property of Landlord and shall be surrendered with the Demised Premises at the end of the Lease  Term.  Notwithstanding the foregoing, Landlord may elect to require Tenant, at Tenant’s expense (which election  shall  be  made  at  the  time  that  Landlord shall  have  approved  the  performance  of  such  Specialty  Alteration),  to  remove any and all Specialty Alterations made by or at the behest of Tenant on or prior to the expiration of the  Lease Term, subject to the following condition.  If Landlord does not, at the time that Landlord shall respond to  Tenant’s request for consent to a proposed Alteration, advise Tenant that such Alteration is a Specialty Alteration  requiring Tenant to remove such Specialty Alteration at the end of the Lease Term, then Landlord shall not have the  right to require Tenant to remove such Specialty Alteration at the end of the Lease Term.  For the purposes hereof,  the term “Specialty Alterations”  shall mean any Alteration that is not an ordinary office installation (or customary  or ancillary thereto), as reasonably determined by Landlord, including any structural Alteration.  By way of example  only, a kitchen (other than a customary office pantry, including the Dining Facility and any warming kitchen therein  and  any Dining  Equipment),  a  cafeteria,  a  fitness  center,  a  private  lavatory,  reinforced  floor, any structural  Alteration, vault, safe, any internal stairway installed by or on behalf of Tenant (other than a widening of openings  of an existing staircase such that the width of the opening does not exceed 275 square feet, or shifting of direction of  an existing internal staircase or slab cut, would each be deemed to be a Specialty Alteration (it being understood and  agreed  that  the  foregoing  is merely  a  list  of  non-exclusive  examples  of  a  Specialty  Alteration,  and  does  not  constitute, nor shall it be construed as, Landlord’s consent to the installation thereof).  For the avoidance of doubt,  Tenant shall have no obligation to remove any vertical and horizontal telephone and data wiring located outside of  the Demised Premises installed by or for Tenant (and any conduit through which such wiring is run), and same shall  not  constitute  a  Specialty  Alteration  hereunder.  Notwithstanding  the  foregoing, by  the  delivery  of  notice  to  Landlord  no  later  than  six  (6)  months  prior  to  the  expiration  or  sooner  termination  of  this  Lease (the  “Specialty  Alterations  Notice”),  Tenant may  elect  that  Landlord  shall  be  fully responsible  for  the  performance  of  all  of  Tenant’s removal and repair obligations set forth in this Section 5.06, in which event Tenant shall pay to Landlord,  within thirty (30) days after demand therefor, (a) Landlord’s good faith estimate of the total out-of-pocket costs to  perform  such  removal  and  repair  work  (which  demand  shall  contain  reasonably  detailed  documentary  evidence  setting forth the calculation thereof), and (b) any actual, reasonable, out-pocket costs to perform the same in excess  of such estimate; provided, however, that Landlord shall deliver reasonably detailed documentary evidence setting  forth  the  actual  cost  thereof (“Landlord’s  Actual  Cost  Notice”), and  in  such  event,  Tenant  shall have no  further  obligation  to perform  such  removal  and repair  work. If  the  actual,  reasonable out-of-pocket  costs  as  set  forth  on  Landlord’s Actual Cost Notice are less than the estimate paid by Tenant to Landlord, then Landlord shall return any  such surplus to Tenant within thirty (30) days following Landlord’s delivery of Landlord’s Actual Cost Notice. If  Tenant fails to deliver the Specialty Alteration Notice and fails to remove any Specialty Alterations that Tenant is                                                  -28-    NY 78267766v2 

 

required to remove in accordance with this Subsection 5.06B upon the expiration or earlier termination of this Lease,  then,  as  to  such  property, Landlord  may,  at  Tenant’s  expense:  (i) remove  all  such  Specialty  Alterations,  and  (ii) repair  any  damage  caused  by  said  removal.   Tenant  shall,  upon  demand  and  as  additional  rent,  reimburse  Landlord for all of the reasonable out-of-pocket expenses incurred by Landlord in connection with the foregoing.  In  addition, any items of Specialty Alterations not removed by Tenant may, at the election of Landlord, be deemed to  have  been  abandoned by  Tenant,  and  Landlord may  retain  and dispose  of  some  or  all of  said  items  without  any  liability to Tenant and without accounting to Tenant for the proceeds thereof.                  C.     In  any  case  where  Tenant  removes  any  Tenant’s  Movable Property  or  Alterations  or  Specialty Alterations in accordance with Subsections A and B above, or otherwise, Tenant shall promptly repair all  damage caused by said removal and shall restore the Demised Premises to as good a condition as such portion of the  Demised Premises was in prior to the installation thereof, at Tenant’s expense, and if Tenant fails to do so, Landlord  may do so at Tenant’s cost and Tenant shall reimburse Landlord therefor upon demand.  In addition, if Tenant shall  remove  any  mechanical or  other  equipment  within  the  Demised  Premises  containing  chlorofluorocarbons,  the  removal  of  such  equipment  shall  conform  with  all  Legal  Requirements  and  industry  practices,  and  shall  be  performed  by  contractors approved  by  Landlord and  in  accordance  with procedures reasonably approved  by  Landlord.                  D.     The provisions of this Section 5.06 shall survive the expiration or sooner termination of  the Lease Term.          Section 5.07   Provided that Tenant shall comply with all Legal Requirements pertaining thereto (and  that such use is not prohibited by applicable Legal Requirements) and provided that Tenant performs certain work  with respect to the Fire Stairs in accordance with the specifications set forth on Exhibit “M” attached hereto, Tenant  shall have the right, on notice to Landlord and at Tenant’s own cost and expense, to utilize one of the Building’s  existing  egress  (or  fire)  stairs,  as  designated  by  Landlord,  (the  “Fire  Stair”),  as  Tenant’s  internal  passage  stairs  between and among the 14th Floor, the 15th Floor, and the 16th Floor (as well as any additional contiguous full  floors in the Building hereafter leased by Tenant) only for so long as the Demised Premises consists of the entirety  of three (3) or more contiguous floors (including any such additional contiguous full floors in the Building leased by  Tenant)  in  which  Tenant  desires  to  utilize  the  Fire  Stair.   If  Tenant  shall  exercise  the  foregoing  right,  then,  notwithstanding  that  such  Fire  Stair  is  not  (and  shall  not be  deemed  to be)  part  of the  Demised  Premises,  all  of  Tenant’s indemnity, insurance and Repair obligations set forth elsewhere in this Lease shall be applicable to the Fire  Stair, but Tenant shall have no obligation to effect any Repairs in the Fire Stair unless the necessity therefor shall  arise by any act or omission of any Person Within Tenant’s Control.  In addition, (i) access doors to the Fire Stair  shall never be propped or blocked open, (ii) Tenant shall not store or place anything in the Fire Stair or otherwise  impede ingress thereto or egress therefrom, (ii) use of the Fire Stair shall not unreasonably disturb any other tenants  or occupants of the Building, (iii) Tenant shall, at Tenant’s own cost and expense, at Landlord’s election, (a) install  automatic  door  closing  devices  reasonably  satisfactory  to  Landlord  on  all  doors  between  the  Fire  Stair  and  the  Demised Premises, (b) tie such devices into the base Building fire-alarm and life-safety system, and (c) maintain the  fire doors in good operable condition, free of dents and painted as reasonably necessary, and (iv) use of the Fire  Stair  shall  be  subject  to  applicable  re-entry  rules  and  regulations  from  time  to  time  in  effect.   Tenant  shall,  at  Tenant’s  own  cost  and  expense,  install  a  keycard  locking  system reasonably approved  by Landlord  on  all  doors  between the Fire Stair and the Demised Premises.          Section 5.08   Tenant shall be permitted, without the consent of Landlord, but subject to the other terms  and conditions of this Article 5, to install a wireless intranet, internet and communications network (also known as  “Wi-Fi”) within the Demised Premises for the use within the Demised Premises only of Tenant and its employees  (the “Network”).  Such Network shall be deemed to be an Alteration for purposes of this Lease, and such permission  of Landlord granted to Tenant in the preceding sentence is subject to Tenant’s compliance with respect thereto with  all of the provisions of this Article 5, as well as with all other applicable provisions of this Lease.  Any Network  shall  also  be  subject  to  the  following  conditions:  (a)  Tenant  shall  not  solicit,  suffer,  or  permit  other  tenants  or  occupants of the Building or other third parties to use the Network or any other communications service, including,  without limitation, any wired or wireless internet service that passes through, is transmitted through, or emanates  from,  the  Demised  Premises;  (b)  Tenant’s  communications  equipment  and  the  communications  equipment  of  Tenant’s service providers and contractors located in or about the Demised Premises or installed in the Building to  service the Demised Premises, including without limitation any antennae, switches or other equipment (collectively,                                                  -29-    NY 78267766v2 

 

“Tenant’s Communications Equipment”) shall be of a type and, if applicable, a frequency that will not cause radio  frequency, electromagnetic or other interference to any other party or any equipment of any other party, including  without limitation Landlord, other tenants or occupants of the Building or any other party and whether or not such  interference is caused to equipment installed after the installation of Tenant’s Communications Equipment; and (c)  Tenant acknowledges that Landlord has granted and/or may grant rights, licenses and other rights to install intranet,  internet, satellite dishes, antennae, switches and other communications networks and equipment to other tenants and  occupants of the Building and to telecommunications service providers and other third parties.  In the event that  Tenant’s  Communications  Equipment  causes  or  is  believed  to  cause  any  such  interference  as  described  in  the  foregoing clause (b), upon receipt of  notice from Landlord of such interference, Tenant will take all commercially  reasonable steps necessary to correct and eliminate the interference.  If the interference is not eliminated within three  (3) business days (or such shorter period as shall be designated by Landlord in its sole but reasonable discretion if  Landlord  believes a  shorter  period  to  be  appropriate)  then,  upon  notice  from  Landlord,  Tenant  shall  shut  down  Tenant’s  Communications  Equipment  until  such  interference  shall  have  been  resolved  to  Landlord’s  reasonable  satisfaction. Landlord  agrees  to  insert  a  provision  similar  to the  preceding  sentence  in  all  leases entered  into  by  Landlord within the 7-21 Condominium after the Effective Date and shall use commercially reasonable efforts to  enforce such provision. Landlord shall have no liability to Tenant if Tenant shall be unable to install any Network in  the  Demised  Premises  or  if Tenant  shall be required  to  shut  down Tenant’s  Communications  Equipment for  any  reason, nor shall the same give rise to any claim by Tenant of constructive eviction, a right of offset, damages or any  other claim whatsoever.            Section 5.09                     A.     Subject  to  the  provisions  of  this Section  5.09 and  the  Condominium  Documents (but  subject to the Board SNDA and the Board Consent), and provided that (x) there shall then be available space on the  Roof therefor, and (y) Tenant shall have obtained the Board’s consent (subject to the Condominium Documents, the  Board SNDA and the Board Consent), and Landlord’s consent (which consent shall not be unreasonably withheld,  conditioned or delayed) as to the specific equipment to be installed by Tenant and Tenant’s method of installation  thereof, Tenant may install in a location on the roof of the Building (herein called the “Roof”) a microwave, satellite  or  other  antenna  communications  system and  related  equipment measuring no  more  than 3  feet  by  3  feet (the  “Satellite Antenna”), that transmits or receives signals to or from other communications installations located off-site  in a location to be mutually agreed upon by the Board (subject to the Condominium Documents, the Board SNDA  and the Board Consent) and Landlord on the Roof.  Landlord shall reasonably cooperate with Tenant in connection  with obtaining the Board's approval of the Satellite Antenna, provided that the same shall be accomplished without  Landlord being required to incur any out-of-pocket cost or expense thereby.  Tenant shall also indemnify and hold  Landlord and the Board (subject to the Board SNDA and the Board Consent) harmless from and against any and all  liability and damages suffered by Landlord and the Board in connection therewith, except if and to the extent that  such liability and damages shall be caused by the negligence or willful misconduct of Landlord or the Board or by  the negligence or willful misconduct of Landlord's or the Board’s agents, contractors or employees.                    B.     Tenant  is  permitted,  subject  to  the  provisions  of  this  Lease  and  the  Condominium  Documents (subject to the Board SNDA and the Board Consent) and solely at Tenant's cost and expense, to install,  operate,  maintain,  repair  and  replace  the  Satellite  Antenna,  as  well  as  the  conduits  and  cables  necessary  for  the  construction, installation, operation, maintenance, repair or replacement of the Satellite Antenna from the Roof to  the Demised Premises through then available sleeves located in the Building communications closets, provided that:   (i)  the  installation  thereof  (including  all  structural  reinforcement,  framing  and  waterproofing)  shall  be  performed  subject  to  the  provisions  of  Article  5  hereof, (ii)  Tenant  shall  obtain  and  maintain  all  operating  permits  and  approvals  to  effectuate  compliance  with  all  applicable  Legal  Requirements  (including  any  requirements  of  the  Federal  Communications  Commission),  (iii)  Tenant  shall  comply  with  all  applicable  Legal  Requirements,  (iv)  Tenant shall, following notice from Landlord or the Board, promptly repair any damage to property, including the 7- 21 Condominium and/or the Building (inclusive of the base Building work and the Building Systems), caused by  such installation, operation or maintenance, (v) Tenant shall remove the Satellite Antenna from the Roof, cap any  cables and remove any cables that are not capped, and repair any resulting damage (whether caused by installation  or removal) to such property at or prior to the Expiration Date, (vi) the width of the Satellite Antenna shall not be  greater than the width permitted by the Board, and (vii) the Satellite Antenna shall not be visible from the street,  and,  if  deemed  necessary  at  any  time  by  Landlord  or the  Board,  Landlord  or  the  Board  may  require  Tenant,  at  Tenant’s own cost and expense, to install a screening device which does not interfere with the use of the Satellite                                                  -30-    NY 78267766v2 

 

Antenna (the design of such screening device subject to Landlord’s and the Board's written reasonable approval) in  order to ensure that the Satellite Antenna cannot be viewed by the public from the street or laterally from another  building.   Notwithstanding  the  foregoing,  with  respect  to  any  work  to  be  performed  in  connection  with  the  installation and/or removal of the Satellite Antenna, Landlord, at Landlord's option, may elect to perform such work  (in  which  event  Tenant  shall,  within  thirty  (30)  days  after  rendition  of  a  bill  therefor  and  as  additional  rent,  reimburse Landlord for the actual and reasonable costs incurred by Landlord in performing such work.                  C.     Tenant acknowledges that Tenant’s use of the Roof is a non-exclusive use and Landlord  may permit any person or entity to use any other portion of the Roof for any use.  Tenant shall have the right, in  common  with  others,  of  reasonable  access  to  the  Roof  and  Building  communications  closets  for  the  installation,  operation, maintenance, repair and removal of the Satellite Antenna, Tenant’s other telecommunications equipment  and related conduits and cables, and for the partial or complete replacement of the foregoing, provided that all such  access shall be coordinated with Landlord or Landlord’s or the Board’s managing agent (it being understood and  agreed that no employee or other representative of Tenant shall enter upon the Roof or any mechanical equipment  room without being accompanied by an employee or other representative of Landlord or Landlord’s or the Board’s  managing agent, which Landlord agrees to make available upon reasonable prior notice (and provided that should  any such employee or other representative of Landlord be provided at times other than Business Hours on Business  Days, then Tenant shall reimburse Landlord, as additional rent and within thirty (30) Business Days after demand  therefor,  for  the  reasonable,  out-of-pocket  costs  of  providing  such  employee  or  other  representative)  and  shall  otherwise be subject to the provisions of this Lease and to such other reasonable conditions imposed by Landlord.                  D.     Landlord and the Board (subject to the Condominium Documents, the Board SNDA and  the Board Consent) shall have the right, at Landlord's cost and expense, on not less than ten (10) Business Days  prior written notice (except in the event of emergency, in which event such notice as shall be reasonable under the  circumstances shall be required), to relocate (or, at Tenant’s option, for Tenant to relocate) the Satellite Antenna,  which may include  the  removal  of  the  Satellite  Antenna  and  the  related  conduits  and  cables,  the  purchasing  of  materials and equipment necessary for the relocation thereof and the reinstallation of the Satellite Antenna and such  conduits and cables at such other location on the Roof as shall be reasonably designated by Landlord or the Board  (subject to the Condominium Documents, the Board SNDA and the Board Consent).  Tenant shall cooperate with  Landlord  in  all  reasonable  respects  relating  to  any  such  relocation.  Landlord  shall  use  commercially  reasonable  efforts to ensure, and to cause the Board to ensure, that Tenant’s communication system is inoperable for as limited  a time period as possible.                  E.     If  installed,  the  Satellite  Antenna  shall  be  used  solely  by  Tenant  in  the  conduct  of  Tenant’s  business.   Tenant  shall  not  resell  the  use,  or  rights  to  the  use,  of  the  Satellite Antenna,  including  the  granting of  any  licensing  or other  rights.   In  no  event  shall  Tenant  have  the  right  to  sell  the  use  of  the  Satellite  Antenna to a third party engaged directly or indirectly in the business of telecommunications.                  F.     The rights granted in this Section 5.09 are granted in connection with, and as part of the  rights created under, this Lease, and are not separately transferable or assignable other than in connection with an  assignment of Tenant's rights under this Lease or subletting of the Demised Premises as permitted by this Lease.                  G.     Nothing  contained  in  this Section  5.09 shall  be  deemed  to  be  a  lease  by  Landlord  to  Tenant of any portion of the Roof. Tenant hereby acknowledges that Landlord is making no representations as to  either  (x) the availability  of  space  on  the  Roof  for  the  Satellite  Antenna,  or  (y)  whether  the  installation  of  the  Satellite Antenna on the Roof is permissible under applicable Legal Requirements, or (z) whether the installation of  the Satellite Antenna on the Roof will allow for adequate reception.                  H.     Within  thirty  (30)  days  after  Landlord's  request  therefor,  Tenant  shall  procure  and  maintain throughout the balance of the Lease Term, such insurance, in addition to the insurance coverage required  pursuant to the provisions of Article 8 below, as Landlord or the Board (subject to the Condominium Documents,  the Board SNDA and the Board Consent) shall reasonably require in connection with Tenant's installation, operation  and maintenance of the Satellite Antenna.           Section 5.10   If Tenant shall fail to comply with any provision of this Article 5, Landlord, in addition to  any  other  remedy  herein  provided,  may  require  Tenant  to  immediately  cease  all  work  being  performed  in  the                                                  -31-    NY 78267766v2 

 

Building by or on behalf of Tenant that does not comply with any provision of this Article 5, and Landlord may  deny access to the Demised Premises to any person performing such work in the Demised Premises or supplying  materials to the Demised Premises in connection therewith or otherwise in contravention of any provision of this  Article 5. Any dispute as to whether or not Landlord was required to be reasonable or was reasonable in withholding  its consent to an Alteration with respect to which Landlord is required to be reasonable hereunder and any other  dispute relating to the provisions of this Article 5 shall be resolved by Expedited Arbitration in accordance with the  provisions of Section 11.05B hereof.          Section 5.11   Landlord  shall,  at  Landlord’s  sole  cost  and  expense,  take  reasonably  prompt  action  to  cure  or  remove  all  violations  of  Legal Requirements  with  respect  to  the  Demised  Premises  that  are  the  express  responsibility  of  Landlord  under  this  Lease  to  cure  or  remove.   If  Tenant  is actually  delayed  in commencing  or  performing Tenant’s  Initial  Improvements  because  Tenant  is unable, due solely  to  Landlord’s  failure  to  cure  or  remove such violation of Legal Requirements, to (i) obtain any permits required by the New York City Department  of Buildings for the performance of Tenant’s Initial Improvements, or (ii) perform Tenant’s Initial Improvements in  the Demised Premises (including because permits obtained by Tenant with respect to such work have expired as a  result of such actual delay), then, as Tenant’s sole and exclusive remedy, in either case, the Rent Concession Period  shall  be  extended by  one  (1)  day from  and  after  the  Delay  Inception  Date for  each  day that  Tenant  is  actually  delayed  in commencing  or  performing Tenant’s  Initial  Improvements  due  solely  to Landlord’s  failure  to  cure  or  remove  such  violation  of  Legal  Requirements,  subject to extension  for  a Force  Majeure event  (which  extension  period for a Force Majeure event shall in no event exceed an aggregate of one hundred eighty (180) days) or Tenant  Delay, it  being  agreed  that  no  extension  of  the  Rent  Concession  Period  shall  occur unless  and  until the  Delay  Inception Date.                                               ARTICLE 6.                                                                                     REPAIRS AND MAINTENANCE          Section 6.01   Tenant  shall  (a)  take  good  care  of  (i)  the  Demised  Premises, and  the Alterations,  equipment, fixtures, glass (except that Tenant shall have no obligation to clean the exterior or interior of the glass),  interiors and exteriors of all entrance doors, and appurtenances, bathrooms and bathroom fixtures in the Demised  Premises, (ii) the Common Elements, Building Systems, sprinkler loop and distribution pipes and heads and/or any  heating, ventilation and air-conditioning (“HVAC”) piping, ducts, fan-powered variable air valve (“VAV”) boxes,  VAV controllers and components of a distribution system but, with respect to each item set forth in this clause (ii),  only if and to the extent that the same is either (x) installed by Tenant or by any Persons Within Tenant’s Control, or  (y) located entirely within the Demised Premises and exclusively serving the Demised Premises), and (b) at Tenant’s  own cost and expense, maintain and make all Repairs thereto (except as set forth below in this Section 6.01) as and  when  needed  to  preserve  them  in  good  working  order  and  condition (including  HVAC  and  other  maintenance  contracts  therefor  in  accordance  with  customary  commercial  practices), reasonable  wear  and  tear and  damage  thereto for which Tenant is not responsible pursuant to the express terms of this Lease excepted, whether or not such  Repairs are ordinary or extraordinary, or foreseen or unforeseen at this time, except for, in the case of both clause (a)  and  (b),  any  damage  thereto caused  by Landlord’s  or  Persons  Within  Landlord’s  Control’s  negligence  or  willful  misconduct and Landlord’s obligations under Section 2.02A and Section 2.02B.  Tenant shall not be responsible for  any Repairs due solely to a defect in the performance of Landlord’s Work, Landlord’s Additional Work, Repairs to  the Common Elements, Repairs to the Building Systems outside of the Demised Premises, and Repairs to structural  portions of the Building, except to the extent caused by or arising from the negligence or willful misconduct, or from  any Alterations installed by or at the behest of Tenant, or from any other act or omission (where there is a duty to  act)  of  Tenant  or  of  any  Persons  Within  Tenant’s  Control (“Tenant  Necessitated  Repairs”),  in  which  case  those  Repairs, including  those Repairs which  are  structural,  extraordinary  and  unforeseen,  shall  be  promptly  repaired,  restored or replaced by Tenant, at Tenant’s own cost and expense.  All Repairs (and materials used therefor) shall be  in quality and class equal to (to the extent practicable) or better than the original work or installations, and shall be  performed  in  good  and  workmanlike  manner.  For purposes of  this  Article  6,  the  “structural  portions”  of  the  Building shall mean the rough floor, the rough ceiling (which, for the avoidance of doubt, is the underside of the  floor slab immediately above each floor of the Demised Premises), the exterior walls, the roof, the exterior windows  and the load-bearing beams and columns of the Building that, in each case, affect the Demised Premises.                                                     -32-    NY 78267766v2 

 

       Section 6.02                     A.     Subject to the provisions of Section 6.07 below, Landlord shall, at its expense, make or  cause the Board or another party to make Repairs to the areas of the 7-21 Condominium and the Building serving  the  Demised  Premises,  including  Repairs  due  to  a  defect  in  the  performance  of  Landlord's  Work, Landlord’s  Additional  Work, Repairs  to  the  Common  Elements,  Repairs  to the  Building  Systems  outside  of  the  Demised  Premises, Repairs which the Board is obligated to perform pursuant to the Condominium Documents, and Repairs of  any kind or nature to the structural portions of the Building, other than those Repairs required to be made by Tenant  as provided in Section 6.01, all as necessary to keep such items in good order and repair in accordance with the  standards then prevailing in Comparable Buildings.  Notwithstanding the foregoing, Landlord shall not be in default  under  this Subsection  6.02A  due  to  Landlord’s  failure  to perform  any  Repairs  pursuant  to  the  provisions  of  this  Subsection 6.02A unless and until the Delay Inception Date.  All Repairs within the Demised Premises performed  by or on behalf of Landlord shall be subject to the provisions regarding access to the Demised Premises set forth in  Article 13 below.  Landlord shall use commercially reasonable efforts (but shall not be obligated to use overtime or  premium  pay  labor, except  as  otherwise  expressly  provided  in  Article  13  below)  to  minimize  interference  with  Tenant’s use, access to, and occupancy of the Demised Premises in making any Repairs, but, except as expressly set  forth  in  Subsection  6.02B  below,  there  shall  be  no  allowance  to  Tenant  for  a  diminution  of rental value  or  interruption of business, and no liability on the part of Landlord, by reason of inconvenience, annoyance or injury to  business arising from Landlord, Tenant, the Board (subject to the terms of the Condominium Documents, the Board  SNDA and the Board Consent) or others making any Repairs or Alterations in or to any portion of the Building or  Building Systems, the 7-21 Condominium or the Demised Premises.                  B.     (i)  For  the  purposes  of  this  Section  6.02,  (1)  the  term  “Interruption”  shall  mean  any  instance (other than a fire or other casualty within the scope of Article 9 below) in which the Demised Premises are  rendered  Untenantable  solely  by  reason  of  (w)  the  failure  of  Landlord  to  perform  any  of  Landlord’s  obligations  pursuant  to  Subsection  6.02A,  (x)  the  interruption,  curtailment,  stoppage  or  suspension  of  the  Building  services  described in Article 18 below or the electricity described in Article 20 below, (y) the performance by Landlord of  Repairs or improvements in or about the Demised Premises or anywhere in the Building, including any Landlord  Change, or (z) the inability of Tenant to obtain access to a Substantial Portion of the Demised Premises, (2) the term  “Untenantable” shall mean that Tenant shall be unable to use the Demised Premises or the applicable portion thereof  for  the  Authorized  Uses (including  due  to  lack  of  access) for  the  business  purpose  for  which  such  space  was  normally used prior to the applicable Interruption, and shall not be using the Demised Premises for any use (other  than  the  presence  of  emergency  or  security  personnel  that  may  remain  in  the  Demised  Premises  to  secure  any  sensitive information or equipment or to maintain the Demised Premises in good repair during such period), (3) the  term “Liability Interruption” shall mean any instance in which an Interruption shall have occurred, and (I) Tenant  shall have notified Landlord of such Interruption and Tenant’s inability to use all or a Substantial Portion of the  Demised Premises by reason thereof within two (2) Business Days of obtaining knowledge of such Interruption (the  “Interruption Notice”); provided, however, that in the event that Tenant fails to give the Interruption Notice within  such two (2) Business Day period, the provisions of Subsections 6.02B(ii) and (iii) shall not be effective until such  time as Tenant sends such Interruption Notice to Landlord, (II) such Liability Interruption and Tenant’s inability to  use  all  or  a  Substantial  Portion  of  the  Demised  Premises  by  reason  thereof  shall  continue  for  at  least three (3)  consecutive Business Days after delivery of the Interruption Notice by Tenant to Landlord or at least twenty (20)  non-consecutive Business Days in any consecutive 365-day period (provided that Tenant shall not be entitled to any  abatement hereunder for any non-consecutive Business Day of Liability Interruption which occurs prior to date that  Tenant furnishes Landlord the Interruption Notice), and (III) such Interruption shall have been caused by an act or  omission of Landlord or any Parties Within Landlord’s Control that is not attributable to Force Majeure and is not  otherwise  attributable  to Tenant’s  Delay  or any  negligent or  wrongful act or  omission of  Tenant  or  any  Persons  Within Tenant’s Control, and (4) the term “Substantial Portion” shall mean not less than ten (10%) percent of any  floor of the Demised Premises, and if a Substantial Portion, but less than all, of the Demised Premises shall have  been rendered Untenantable, then Tenant shall be entitled to an abatement of Fixed Rent and Recurring Additional  Rent  on  a  pro  rata  basis,  calculated  by  multiplying  the  amount  of  Fixed  Rent  and  Recurring Additional  Rent  otherwise then payable pursuant to this Lease by a fraction, the numerator of which shall be the rentable portion of  the  Demised  Premises  that  shall  have  been  rendered Untenantable,  and  the  denominator  of  which  shall  be  the  number of Rentable Square Feet; provided, however, that if more than fifty (50%) percent of an entire floor of the  Demised Premises shall be rendered Untenantable, such entire floor shall be deemed to be Untenantable if Tenant  delivers a certification to Landlord, stating that, in Tenant's reasonable good faith judgment, due to the nature of                                                  -33-    NY 78267766v2 

 

Tenant's business conducted on such floor, the inability to use the Untenantable portion of such floor renders the  entire floor Untenantable.                         (ii)    If  a  Liability  Interruption  shall  occur, then, as  Tenant’s  sole and  exclusive  remedy in connection with such Liability Interruption, and provided that such Liability Interruption shall then be  continuing, Tenant shall be entitled to an abatement of Fixed Rent and Recurring Additional Rent for the period  which shall begin on the fourth (4th) Business Day or the twenty-first (21st) non-consecutive Business Day in any  consecutive 365-day period, as applicable, following Tenant’s delivery of the Interruption Notice to Landlord and  which shall end on the earlier of the day on which such Liability Interruption shall cease or the day immediately  prior to the day on which the affected portion of the Demised Premises is no longer Untenantable.                           (iii)   If  a  Liability  Interruption  shall  occur,  Landlord  shall  use  all  commercially  reasonable efforts to eliminate such Liability Interruption.                         (iv)    Notwithstanding  the  foregoing,  in  connection  with  a Liability Interruption,  Tenant  shall  not  be  entitled  to  any  such  abatement  to  the  extent  that  Tenant  receives  insurance  proceeds for the  payment of such Fixed Rent and/or Recurring Additional Rent (or would have received such insurance proceeds had  Tenant maintained the insurance required to be maintained by Tenant pursuant to the terms of this Lease).          Section 6.03   If  any  Insurance  Board  or  Legal  Requirements  shall  require  installation  of  fire  extinguishers  or  of  a  “sprinkler  system”  or  any  other  fire  protection  devices,  or  any  changes,  modifications,  alterations or additions thereto for any reason attributable to Tenant’s manner of use of the Demised Premises for  other than customary office uses (including in particular any use of a portion of the Demised Premises for a Dining  Facility), or if any such installation or equipment becomes necessary to prevent the imposition of a penalty or charge  against the full allowance for a sprinkler or fire extinguishing system in the fire insurance rate as fixed by Insurance  Boards,  or  by  any  fire  insurance  company  by  reason  of  Tenant’s  specific  use  or  manner  of  use  of  the  Demised  Premises for other than customary office uses (including in particular any use of a portion of the Demised Premises  for a Dining Facility), then Tenant, at Tenant’s expense, shall promptly install the necessary sprinkler heads and  piping  within  the  Demised  Premises  and  supply  such  changes, modifications,  alterations,  additions  or  other  equipment.  In the event that Landlord or the Board (subject to the Condominium Documents, the Board SNDA and  the Board Consent) shall make any such installation (including sprinklers, stair pressurizers, water towers) or any  such change, modification, alteration or additions outside of the Demised Premises (such as, without limitation, in  the Common Elements) attributable to Tenant’s specific use or manner of use of the Demised Premises for other  than  customary  office  uses  (including  in  particular  any  use  of  a  portion  of  the  Demised  Premises  for  a  Dining  Facility), Tenant shall reimburse Landlord, as additional rent, an amount equal to the reasonable out-of-pocket cost  thereof.  Such reimbursement shall be made by Tenant within thirty (30) days after notice to Tenant of such amount  with  reasonable  evidence  therefor.   Tenant  shall  have  no obligation  to  perform  any  of the  work  set  forth  in  this  Section 6.03 or elsewhere in this Lease, or to be responsible for the cost thereof, if and to the extent that the same  shall be necessitated by any defects in the construction of the Building or the performance of Landlord’s Work and  Landlord’s Additional Work.  Landlord represents and warrants to Tenant that, on the Commencement Date, the  Authorized Uses for the Demised Premises shall not in and of themselves (a) violate or contravene the certificate of  occupancy  for  the  Demised  Premises,  the  Building  or  the  7-21  Condominium,  as  applicable,  or  (b) violate  any  Insurance Board requirements.          Section 6.04   In  any  case  where  Tenant  shall  be  required  to  make  Repairs or  perform  any  work  pursuant to this Article 6 or any Alterations pursuant to Article 7 below, and such Repairs, work or Alterations shall  affect the Building Systems or areas outside of the Demised Premises (including any other Unit), Landlord may, in  Landlord’s  discretion,  elect  to  make  such  Repairs  or to  perform  such work  or Alterations  for  and  on  behalf  of  Tenant, but at Tenant’s cost and expense. Alternatively, the Board may elect to make such Repairs or to perform  such work or Alterations, either at Landlord’s cost and expense, or as a Common Expense under the Condominium  Documents (subject  to  the  Condominium  Documents,  the  Board  SNDA  and  the  Board  Consent).   In  either  such  event, Tenant  shall  reimburse  Landlord  as  additional  rent  for  the  reasonable out-of-pocket cost  of  such  Repairs,  work or Alterations within thirty (30) days after Landlord shall furnish a statement to Tenant of the amount thereof,  accompanied by reasonable evidence documenting such amount due.                                                   -34-    NY 78267766v2 

 

       Section 6.05   Tenant shall maintain the Demised Premises and the areas appurtenant thereto (including  any permitted signs or cameras) in a clean and orderly condition that is consistent with the use and appearance of the  Building.          Section 6.06   If Tenant  elects  to  install  supplemental  air-conditioning  equipment  in  the  Demised  Premises as part of Tenant’s Initial Improvements and/or any other supplemental HVAC systems hereafter installed  (in accordance with the provisions of Article 5 above) to exclusively serve the Demised Premises, Tenant shall be  responsible for all costs (including any condenser water pursuant to the provisions of Subdivision 18.01B(ii) below)  associated with the operation, repair, maintenance and replacement of all such supplemental HVAC systems serving  the Demised Premises (with any replacement being of a similar make and model), and (b) at all times maintain a  service contract for the maintenance of such supplemental air-conditioning systems with a third party contractor that  is (x) reasonably approved by Landlord, and (y) approved (if required by the Condominium Documents, but subject  to the Board SNDA and the Board Consent) by the Board.          Section 6.07   The provisions of this Article 6 shall not apply in the case of fire or other casualty, in  which case Article 9 below shall govern.                                               ARTICLE 7.                                                                                       COMPLIANCE WITH LAW          Section 7.01                     A.     Tenant shall not do, and shall not permit Persons Within Tenant’s Control to do, any act  or thing in or upon the Demised Premises, the 7-21 Condominium or the Building which will invalidate or be in  conflict  with  the  certificate  of  occupancy  for  the  Demised  Premises,  the  7-21  Condominium  or  the  Building,  or  which  will  violate  any  Legal  Requirements.   Tenant  shall,  at  Tenant’s  cost  and  expense,  comply  with  all  Legal  Requirements  which  shall  with  respect  to  the  Demised  Premises or  with  respect  to  any  abatement  of  nuisance,  impose any violation, order or duty upon Landlord or Tenant arising from, or in the Demised Premises, particular  use or manner of use of the Demised Premises (in contradistinction to the mere use of the Demised Premises for  customary office  use,  including  any  use  of  a  portion  of  the  Demised  Premises  for  a  Dining  Facility),  or  any  Alterations therein, other  than Landlord’s  Work and  Landlord’s  Additional  Work and mere  installations  for  customary office  use,  including  any  installations  in  the  Demised  Premises  for  a  Dining  Facility,  or  required  by  reason of a breach of any of Tenant’s covenants or agreements under this Lease, whether or not any work required  shall be ordinary or extraordinary or foreseen or unforeseen at the date hereof, except if and to the extent the same  shall be the obligation of Landlord pursuant to an express provision of this Lease.  Notwithstanding the foregoing,  Tenant  shall  not  be  obligated  to  perform any  structural  Alterations  to  the  Demised  Premises  by  reason of  the  foregoing obligations, if and to the extent that the necessity therefor shall result from the mere use and occupancy of  the Demised Premises for customary office use (in contradistinction to any other use, and including in particular any  use of a portion of the Demised Premises for a Dining Facility).  Landlord represents to Tenant that, on the date of  this Lease and to Landlord’s knowledge, Landlord has not received notice from any governmental authority to the  effect that the Demised Premises, the Common Elements or any of the public portions of the Building or the 7-21  Condominium  are  in  violation  of  any  Legal  Requirements  that  would  impair  Tenant’s  ability  to  commence and  perform Tenant’s Initial Improvements or use and occupy the Demised Premises for the Authorized Use, or would  cause Tenant to suffer any liability as a result of Landlord’s non-compliance.  Landlord represents to Tenant that, as  of the Commencement Date, there will be no asbestos or asbestos containing materials (as such term is defined by  Legal Requirements) located within the Demised Premises, and Landlord agrees not to thereafter introduce the same  into the Demised Premises.                     B.     In addition to the above, Tenant shall be responsible for the cost of all compliance with  the Disabilities Act with respect to areas of the Land and Building outside the Demised Premises, but only if and to  the extent that the required compliance arises from (I) Tenant’s particular manner of use of the Demised Premises  for other than customary office uses (including any use of a portion of the Demised Premises for a Dining Facility),  (II)  the  specific nature of  Tenant’s  business conducted  at  the  Demised  Premises,  (III)  Tenant’s  particular  installations, equipment  or  other  property  therein  (including  Dining  Equipment)  or  the  operation  thereof  (as  distinguished from installations, equipment or other property for customary office use), (IV) any cause or condition                                                  -35-    NY 78267766v2 

 

created by (including Tenant’s use of a portions of the Demised Premises for a Dining Facility) or at the instance of  Tenant (as distinguished from Tenant’s mere occupancy of the Demised Premises for the Authorized Use) due to  any of the foregoing clauses (I), (II) and/or (III), or (V) the breach of any of Tenant’s obligations under this Lease.            Section 7.02   Tenant  shall  not  cause  or  permit  any  Hazardous  Materials  (hereinafter  defined)  to  be  used,  stored,  transported,  released,  handled,  produced  or  installed  in,  on  or  from  the  Demised  Premises  or  the  Building by Tenant or Persons Within Tenant’s Control; provided, however, that the foregoing prohibition shall not  apply to standard office cleaning supplies in limited quantities, if and to the extent permitted by Legal Requirements.   The  term  “Hazardous  Materials”,  as  used  herein,  shall  mean  any  flammables,  explosives,  radioactive  materials,  hazardous wastes, hazardous and toxic substances or related materials, asbestos or any material containing asbestos,  or any other substance or material included in the definition of “hazardous substances”, “hazardous wastes”, “hazard  materials”, “toxic substances”, “contaminants” or any other pollutant, or otherwise regulated by any federal, state or  local  environmental  law,  ordinance, rule or  regulation,  including  the  Comprehensive  Environmental  Response  Compensation and Liability Act of 1980, as amended, the Hazardous Materials Transportation Act, as amended, and  the  Resource  Conservation  and  Recovery  Act,  as  amended,  and  in  the  regulations adopted  and  publications  promulgated pursuant to each of the foregoing Acts, and/or pursuant to any other law or regulation of like import  now or hereafter in force.  In the event of a violation of any of the foregoing provisions of this Subsection 7.02,  Landlord may, after notice and the expiration of the applicable cure period (except in an emergency, in which case  no  notice  shall  be  required,  and  Tenant  shall  not  be  afforded  any  grace  period  or  opportunity  to  cure)  take  all  remedial action in order to comply with Legal Requirements necessary to correct such condition, and Tenant shall  reimburse Landlord for the reasonable out-of-pocket cost thereof, within thirty (30) days after demand therefor, as  additional rent.          Section 7.03   If Tenant shall receive notice of any violation of any Legal Requirements applicable to  the Demised Premises, Tenant shall give prompt notice thereof to Landlord.           Section 7.04   If any governmental license or permit shall be required for the proper and lawful conduct  of Tenant’s business and if the failure to secure such license or permit would, in any way, affect Landlord or the  Building, then Tenant, at Tenant’s expense, shall promptly procure and thereafter maintain, submit for inspection by  Landlord, and at all times comply with the terms and conditions of each such license or permit; provided that the  failure to submit the same to Landlord for inspection shall not be a default hereunder unless Tenant fails to submit  the same within three (3) days after request therefor by Landlord.          Section 7.05   If an excavation shall be made upon the land adjacent to or under the Building, or shall be  authorized  or  contemplated  to  be  made,  Tenant  shall  afford  to  the  person  causing  or  authorized  to  cause  such  excavation (the “Excavation Party”) license to enter upon the Demised Premises for the purpose of doing such work  as said person shall deem necessary or desirable to preserve the Building from injury or damage and to support the  same  by  proper  foundations  without  any  claim  for  damages  or  indemnity against  Landlord,  or  diminution  or  abatement of rent.  If such excavation shall be undertaken by Landlord or contractors employed by Landlord, then  (i) Landlord shall use commercially reasonable efforts (but shall not be obligated to use overtime or premium pay  labor) to minimize interference with Tenant’s use and occupancy of the Demised Premises resulting therefrom, and  (ii) any access to the Demised Premises shall be subject to the provisions of Article 13 hereof (including the notice  requirements  thereof).  If  such  excavation  shall not be  undertaken  by  Landlord  or  contractors  employed  by  Landlord, Landlord shall deliver notice to Tenant of any such proposed entry by any Excavation Party promptly  after Landlord receiving notice of the same from the Excavation Party.          Section 7.06   Tenant  shall  not  clean,  or  permit,  suffer  or  allow  to  be  cleaned,  any  windows  in  the  Demised Premises from the outside in violation of Section 202 of the Labor Law or any other Legal Requirements.          Section 7.07   A.      Landlord represents to Tenant that, as of the Effective Date, there is no friable  asbestos  or  asbestos  containing  materials  (as  such  term  is  defined  by  Legal  Requirements)  located  within  the  Demised Premises.  Landlord agrees not to hereafter introduce asbestos into the Demised Premises, and Landlord  shall  not  cause  or  permit  by  any  Persons  Within  Landlord’s  Control  any  Hazardous  Materials  (to  the  extent  the  quantity  thereof  exceeds  the  quantity  permissible  under  applicable  Legal  Requirements)  to  be  used,  stored,  transported, produced or installed in, or from the Demised Premises.  Tenant acknowledges receipt or advice from  Landlord to the effect that portions of the Building, other than the Demised Premises, may contain asbestos or other                                                  -36-    NY 78267766v2 

 

Hazardous Materials.  Tenant and Landlord agree that, except as expressly set forth in this Lease: (i) Landlord shall  have no liability whatsoever to Tenant, or to any person or entity claiming by, through or under Tenant, by reason  of, or in connection with, the presence of asbestos or other Hazardous Materials in such portions of the Building,  and (ii) Tenant’s obligation to keep, observe and perform all of the terms, provisions, covenants and conditions on  the part of Tenant to be kept, observed and performed pursuant to this Lease shall not in any way be diminished or  contested on account of the presence of such asbestos or other Hazardous Materials, except as expressly set forth in  this Lease. After Tenant has delivered final plans for Tenant’s Initial Improvements to Landlord, Landlord shall, at  Landlord’s  cost  and  expense,  obtain and  deliver  to  Tenant a  New  York  City  Department  of  Environmental  Protection Form ACP-5 or equivalent with respect to the Tenant’s Initial Improvements shown on such final plans  and specifications.                    B.     Landlord shall, as part of Landlord’s Work, deliver the Demised Premises to Tenant on  the Commencement Date free and clear of all Hazardous Materials in violation of applicable Legal Requirements  and otherwise in compliance with all applicable Legal Requirements (including NYC Local Laws No. 5 of 1973,  No. 16 of 1984 and No. 58 of 1988, each as amended from time to time, and all Legal Requirements then in effect  relating to asbestos and to access for the handicapped or disabled) in order for the Demised Premises to be used for  ordinary office use.  Landlord shall, at Landlord’s sole cost and expense (or shall cause the Board, at the Board’s  cost  and  expense),  take  reasonably  prompt  action  to  remove  or  otherwise  remediate  any  Hazardous  Materials  (including asbestos) in the Demised Premises (or in any area of the Building outside of the Demised Premises in  which Tenant has been permitted to perform work in accordance with the provisions hereof (and the Condominium  Documents) that were not introduced by or on behalf of Tenant or any Persons Within Tenant’s Control and that are  required  by  applicable  Legal  Requirements  to  be  removed  or  remediated (the  “Hazardous  Material  Work”);  provided  that  Tenant  notifies  Landlord  of  the  same  promptly  following  discovery  thereof (without  incurring  overtime  or  premium  pay  labor). The  fact  that  the  performance  by  Tenant  of  an  Alteration  may  result  in  an  obligation of Landlord to perform Hazardous Material Work shall not be grounds for Landlord withholding consent  to such Alteration. All Hazardous Material Work performed by Landlord shall be performed in accordance with all  applicable Legal Requirements, and shall be performed as promptly as practicable.  If Tenant is actually unable to  use, access or perform work in (or obtain permits therefor) the Demised Premises (or any portion thereof) for the  purposes permitted under this Lease due to such Hazardous Material  Work, then, as Tenant’s sole and exclusive  remedy in connection therewith (unless the same is attributable to any Tenant’s Delay or a Force Majeure event),  Tenant shall be entitled to an abatement of Fixed Rent on a day-for-day basis for each day that Tenant was actually  unable to use or access (and actually did not use or access), or was actually delayed in performing Alterations in, the  Demised Premises,  or  the  applicable  portion  thereof,  due  to  the  presence  of  Hazardous  Materials (including  asbestos) in the Demised Premises or Hazardous Material Work, which abatement in the event of Tenant’s inability  to use any portion of the Demised Premises, shall be in proportion to that area of the Demised Premises which was  not used as a result of the presence of such Hazardous Materials or the performance of such Hazardous Material  Work, it being expressly agreed and understood that Tenant shall not be entitled to any such abatement unless and  until the Delay Inception Date.            Section 7.08                     A.     Landlord represents and warrants to Tenant that, on the date of this Lease, (i) Landlord  has no actual knowledge of, nor has Landlord received, notice from any governmental authority to the effect that  Landlord or the Building is in violation of any Legal Requirements concerning the presence of Hazardous Materials  in or upon the Demised Premises, the Building, or the Land, and (ii) Landlord has no actual knowledge that, nor has  Landlord received notice from any governmental authority to the effect that, Landlord is not in compliance with any  Legal  Requirements  that  would  delay  or  prevent  Tenant’s  performance  of  Tenant’s  Initial  Improvements  or  adversely affect Tenant’s use and occupancy of the Demised Premises for the Authorized Use.  Landlord agrees to  furnish Tenant with a copy of any notice that Landlord shall receive during the Lease Term asserting the presence of  Hazardous Materials in the Building or in or upon the Land.                    B.     Except to the extent same shall be the obligation of Tenant under this Lease (including if  such compliance was necessitated by any act or omission of Tenant or any Persons Within Tenant’s Control), if the  failure  to  so  comply as  set  forth  in  Subsection  7.08A  above would  affect  Tenant’s  use  and  occupancy  of  the  Demised  Premises  for  the  Authorized  Use  or  would  result  in  the  imposition  of  a  civil  or  criminal  penalty  upon  Tenant (and if a civil penalty, only if and to the extent the same is not paid by Landlord or adversely affects Tenant),                                                  -37-    NY 78267766v2 

 

Landlord shall (and shall use commercially reasonable efforts to cause the Board to) comply with all other Legal  Requirements in connection with the Demised Premises, the public and common areas of the Building, or the 7-21  Condominium. Landlord shall not amend the Building’s certificate of occupancy in a manner that would adversely  affect Tenant’s use of the Demised Premises for the Authorized Use.          Section 7.09   Tenant, at  its  own  cost  and  expense,  may  contest,  in  any  manner  permitted  by  Legal  Requirements, the validity or the enforcement of any Legal Requirements with which Tenant is required to comply  pursuant  to  this  Lease;  provided  that  (a)  any  such  contest  and/or  Tenant’s  non-compliance  with  any  such  Legal  Requirements  shall  not  (i)  subject Landlord or  the  Board to  (x)  criminal  penalty or  prosecution,  or  (y)  any  civil  liability (other than monetary fines but only to the extent same are not paid by Tenant) that would adversely affect  the operation of the Building or the rights of other tenants or occupants of the Building, (ii) subject the Building or  the 7-21 Condominium (or any portion thereof) to lien or sale or cause, or be reasonably likely to cause, the same to  be condemned or vacated or (iii) be in violation of Condominium Documents, any Underlying Lease, or Mortgage,  or if such Underlying Lease and/or Mortgage or the Condominium Documents shall permit such non-compliance or  contest on condition of the taking of action or furnishing of security by Landlord, such action shall be taken and  such  security  shall  be  furnished  at  the  expense  of  Tenant;  (b)  Tenant  shall  indemnify  and  protect  Landlord,  the  Board (subject to the Board SNDA and the Board Consent) and any Mortgagee or Overlandlord against any loss,  cost, liability, damage or expenses (including, without limitation, interest and penalties and reasonable attorneys’  fees  and  disbursements)  which  could  arise  by  reason  of  such  non-compliance  or  contest in  accordance  with  the  provisions  of  Section  11.03 below,  and  (c)  Tenant  shall  promptly, diligently, in  good  faith  and  continuously  prosecute such contest and shall keep Landlord informed, on a regular basis, of the status of such contest.                                             ARTICLE 8.                                                                                              INSURANCE           Section 8.01   Landlord shall maintain, or Landlord shall cause the Board to maintain, during the Lease  Term a policy or policies of insurance insuring the Building and the 7-21 Condominium against loss or damage due  to fire and other casualties covered within the classification of fire and extended coverage, vandalism coverage and  malicious mischief, sprinkler leakage, water damage and special extended coverage on the 7-21 Condominium for  the  full  replacement  cost  value  of  the  Building  and  the  7-21  Condominium.   Landlord may  elect  to maintain  deductibles  and such  other  or  additional  insurance  coverage  as  may  include  protection  against  the  risks  of  earthquake, flood damage and other hazards, a rental loss endorsement, one or more loss payee endorsements in  favor of any Mortgagee or Overlandlord, and such other endorsements as Landlord shall reasonably determine to be  appropriate or desirable.  Tenant shall not do, or permit any Persons Within Tenant’s Control to do, any act or thing  in  or  upon  the  Demised  Premises  which  will  invalidate  the  terms  of  the  New  York  State  standard  form  of  fire  insurance  with  extended  coverage,  or  with  rental,  liability,  boiler,  sprinkler,  water  damage,  war  risk  or  other  insurance policies (or endorsements) covering the 7-21 Condominium, the Building and the fixtures and property  therein (hereinafter referred to as the “Building Insurance”); and Tenant at Tenant’s own expense, shall comply with  all rules, orders, regulations and requirements of all Insurance Boards of which Tenant shall have received notice  (but only if compliance with such orders, rules, regulations or requirements is generally required by prudent owners  of Comparable Buildings) shall not do or permit anything to be done in or upon the Demised Premises or bring or  keep anything therein or use the Demised Premises in a manner which increases the rate of premium for any of the  Building  Insurance over  the  rate  which  would  otherwise  then  be  in effect  or  which  would  result  in  insurance  companies  of  good  standing  refusing  to  insure  the Building  or  the 7-21  Condominium in  amounts  reasonably  satisfactory  to  Landlord;  it  being  agreed  that,  as  of  the  date  hereof, Tenant’s  use  of  the  Demised  Premises  for  ordinary office use as set forth herein does not violate the foregoing and does not increase the rate of premium for  any of the Building Insurance.            Section 8.02                     A.     If, by reason of the failure of Tenant to comply with any provision of this Lease, the rate  of premium for the Building Insurance or other insurance on the property and equipment of Landlord or the Board,  shall be higher than it otherwise would be, Landlord shall notify Tenant of same, by notice accompanied by a letter  from the relevant insurance company evidencing the cause of such higher premium(s), and if Tenant fails to cure  such noncompliance with the Lease within three (3) Business Days after receipt of Landlord’s notice, Tenant shall                                                  -38-    NY 78267766v2 

 

reimburse Landlord, and/or the Board for that part of the insurance premiums thereafter paid by Landlord or the  Board which shall have been charged because of such failure by Tenant.  Tenant shall make said reimbursement  within thirty (30) days following demand therefor by Landlord or the Board.                  B.     In  any  action  or  proceeding  wherein  Landlord  and  Tenant  are  parties,  a  schedule  or  “make-up” of any insurance rate for the Building or Demised Premises issued by any Insurance Board establishing  insurance premium rates for the Building shall be prima facie evidence (absent manifest error) of the facts therein  stated and of the several items and charges in the insurance premium rates then applicable to the Building.          Section 8.03                     A.     Tenant shall, at Tenant’s own cost and expense, obtain, maintain and keep in force during  the entire Lease Term, for the benefit of Landlord, the managing agent for the 7-21 Condominium, Overlandlord (if  applicable), the Board and Tenant, the following insurance coverages and any other or greater insurance required by  the  Board or  pursuant  to  the terms  of  the  Condominium Documents (subject  to  the  Board  SNDA  and  the  Board  Consent):  (i) commercial general liability insurance (including premises operation, bodily injury, personal injury,  death,  independent  contractors’  liability,  owner’s  protective  liability,  products  and  completed  operations  liability,  broad form contractual liability and broad form property damage coverages) in a combined single limit amount of  not less than $10,000,000, against all claims, demands or actions with respect to damage, injury or death made by or  on behalf of any person or entity, arising from or relating to the conduct and operation of Tenant’s business in, on or  about the Demised Premises (which shall include Tenant’s signs, if any), or arising from or related to any act or  omission of Tenant or of Persons Within Tenant’s Control; (ii) during the course of construction of any Alterations  and until completion thereof, so-called “installation floater” insurance on an “all risk” basis (including collapse) on a  completed value (non-reporting) form for full replacement value covering the interests of Landlord and Tenant (and  their  respective  contractors  and  subcontractors)  in  all  work  incorporated  into  the  Building  and  all  materials  and  equipment located in or about the Demised Premises; (iii) Workers’ Compensation insurance, as required by law;  and  (iv)  if  Tenant  shall  install  or  maintain  one  or  more  boilers  or  other  pressure  vessels  to  serve  the Demised  Premises or Tenant’s operations thereat, Tenant shall, at Tenant’s own cost and expense, obtain, maintain and keep  in force, for the benefit of Landlord, Overlandlord (if applicable), each Owner, the Board and Tenant, appropriate  insurance coverage thereof in an amount not less than $5,000,000 (it being understood and agreed, however, that (1)  the foregoing shall not be deemed a consent by Landlord to the installation and/or maintenance of any boilers or  other pressure vessels in the Demised Premises, which installation and/or maintenance shall at all times be subject to  the terms  and  conditions  of  Article  5  hereof,  and  (2)  Landlord  shall  have  no  responsibility  for  the  maintenance,  repair  or  replacement  of  any  such  boiler  or  other  pressure  vessel).  All  such  insurance  shall  contain  only  such  “deductibles” or “retentions” as Landlord shall reasonably approve.  Any insurance required to be carried by Tenant  pursuant to the provisions of this Lease may be written as either a primary or umbrella policy (or both) and may be  carried under a blanket policy or policies covering the Demised Premises and other locations of Tenant, provided  that each such policy shall in all respects comply with the provisions of this Article 8 and shall set forth the specific  dollar  amount  of  the  coverage  of  such  policy  that  is  applicable  solely  to  the  Demised  Premises,  and  such  dollar  amount shall not be less than the amount required pursuant to this Section 8.03.  In addition, prior to any entry upon  the Demised Premises by Tenant or by any Persons Within Tenant’s Control, Tenant shall deliver or cause to be  delivered  to  Landlord  certificates  evidencing  that  all  insurance  required  hereunder  is  in  full  force  and  effect.    Whenever, in Landlord’s reasonable judgment, good business practice and changing conditions indicate a need for  additional or different types of insurance coverage in a manner commensurate with that which shall then be required  by non-institutional landlords of Comparable  Buildings,  Tenant  shall,  upon  Landlord’s request,  promptly  obtain  such insurance coverage, at Tenant’s expense.                  B.     Tenant shall, at Tenant’s own cost and expense, obtain, maintain and keep in force during  the  entire  Lease  Term,  insurance  which  shall  protect  and  indemnify  Landlord,  the  managing  agent  of  the  7-21  Condominium,  Tenant,  Overlandlord  (if  applicable)  and  the  Board  against  any  and  all  damage  to  or  loss  of  (i)  Alterations,  equipment,  furnishings,  furniture,  fixtures,  glass,  appurtenances,  contents,  bathrooms  and  bathroom  fixtures  in  the  Demised  Premises,  (ii)  the Common  Elements, Building  Systems,  sprinkler  loop  and  distribution  pipes and heads and/or any HVAC piping, ducts, VAV boxes, VAV controllers and components of a distribution  system (but, with respect to each item set forth in this clause (ii), only if and to the extent that the same is either (x)  installed by Tenant or by any Persons Within Tenant’s Control, or (y) located entirely within the Demised Premises  and exclusively serving the Demised Premises).  Such insurance shall be written on an “all risk” of physical loss or                                                  -39-    NY 78267766v2 

 

damage basis, for the full replacement cost value (new, without deduction for depreciation of the covered items) and  in  amounts  that  satisfy  any  co-insurance  clauses  of  the  policies  of  insurance,  and  shall  include a vandalism  and  malicious mischief endorsement, with sprinkler leakage coverage.                    C.     Landlord, the managing agent for the 7-21 Condominium, Overlandlord (if applicable),  each  Owner and  the  Board  shall  be  named  as  additional  insureds  in  said liability policies and  shall  be  protected  against all liability occasioned by an occurrence insured against.  All said policies of insurance shall be:  (i) written  on  an  “occurrence”  basis,  (ii) written  as  primary  policy  coverage  and  not  contributing  with  or  in  excess of  any  coverage which Landlord, the managing agent for the 7-21 Condominium, Overlandlord or the Board may carry,  and (iii) issued by insurance companies then rated not less than A:VII in Best’s insurance reports, and which are  licensed  to  do  business  in the  State  of  New  York.   Tenant  shall,  prior  to  the  Commencement  Date,  deliver  to  Landlord copies of all such policies of insurance, or (x) in the case of the insurance required pursuant to Subsection  8.03A above, certificates thereof, or (y) in the case of the insurance required pursuant to Subsection 8.03B above, an  ACORD  Form 27  (i.e.,  “Evidence  of  Property  Insurance  Form”) or,  in  Landlord’s  discretion,  such other  form  or  certificate  as  shall  be  reasonably  acceptable  to  Landlord  (but,  in  any  case,  including  a copy  of  the  waiver  of  subrogation  endorsement  required  to  be  carried  by  Tenant  pursuant  to  this  Lease),  together  with  evidence  of  payment  of  premiums  thereon.   Thereafter,  Tenant  shall  furnish  to  Landlord,  at  least  ten  (10)  days  prior  to  the  expiration of any such policies and any renewal thereof, a new policy or certificate or form (as applicable) in lieu  thereof,  with  evidence  of  the  payment  of  premiums  thereon.  Each  of  said  policies  (and  certificate  or  form,  if  applicable) shall also contain a provision whereby the insurer agrees not to cancel, diminish or materially modify  said insurance policy(ies) without having given Landlord, Overlandlord (if applicable) and the Board (to the extent  required by the Condominium Documents, but subject to the Board SNDA and the Board Consent) at least thirty  (30) days prior notice thereof, by certified mail, return receipt requested, to the extent such provision is available (it  being agreed that if such provision is not available, Tenant shall give Landlord, Overlandlord (if applicable) and the  Board (to  the  extent  required  by  the  Condominium  Documents,  but  subject  to  the  Board  SNDA  and  the  Board  Consent) at  least  ten  (10)  days’  prior  notice  of  any  cancellation,  diminishment  or  material  modification  of  such  insurance policy(ies).                  D.     Tenant shall pay all premiums and charges for all of said policies, and, if Tenant shall fail  to  make  any  payment  when  due  or  carry  any  such  policy,  Landlord  may, but  shall  not  be  obligated  to, secure  coverage in accordance with this Lease and charge Tenant therefor, and the amount paid by Landlord, with interest  thereon at the Interest Rate, shall be repaid to Landlord by Tenant within thirty (30) days following demand therefor.   Landlord’s securing coverage in accordance with the previous sentence shall not be deemed to waive or release the  default of Tenant with respect thereto.                   E.     Notwithstanding anything to the contrary contained herein, Tenant agrees that Tenant's  obligations to insure against all claims, damage, loss, liability, cost and expense (including engineer's, architects' and  reasonable attorneys' fees and disbursements) resulting from any of the risks covered by the policies required under  this Section 8.03 shall not in any way be subject to, or limited by, the limits of insurance specified in this Section  8.03, and Tenant agrees not to look to Landlord, Overlandlord or the Board, or the agents, partners, shareholders,  directors, officers or employees of Landlord, Overlandlord or the Board with respect thereto.          Section 8.04                     A.     Landlord  shall  cause  each  policy  carried  by  Landlord  insuring  the  7-21  Condominium  against loss, damage, or destruction by fire or other casualty, and Tenant shall cause each insurance policy carried  by Tenant and insuring the Demised Premises, Alterations, and Tenant’s Movable Property against loss, damage, or  destruction by fire or other casualty, to be written in a manner so as to provide that the insurance company waives  all rights of recovery by way of subrogation against the other party in connection with any loss or damage covered  by any such policy.  No such party shall be liable to any other for the amount of such loss or damage that is in  excess of the applicable deductible, if any, caused by fire or any of the risks enumerated in its policies.  However, if  such waiver cannot be obtained, or shall be obtainable only by the payment of an additional premium charge above  that  which  is  charged  by  companies  carrying  such  insurance  without  such  waiver  of  subrogation,  then  the  party  undertaking  to  obtain  such  waiver  shall  notify the  other  parties  of  such  fact,  and  such  other  parties  shall  have  a  period of ten (10) days after the giving of such notice to agree to pay such additional premium if such policy is  obtainable  at  additional  cost  (in  the  case  of  Tenant,  pro  rata  in  proportion  of  Tenant’s  rentable  area  to  the  total                                                  -40-    NY 78267766v2 

 

rentable  area  covered  by  such  insurance);  and  if  such  other  parties  do  not  so  agree  or  the  waiver  shall  not  be  obtainable, then the provisions of this Section 8.04 shall be null and void (with respect to all such parties) as to the  risks covered by such policy for so long as either such waiver cannot be obtained or the party in whose favor a  waiver of subrogation is desired shall refuse to pay the additional premium.  If the release of any party, as set forth  in  the second  sentence of  this  Section  8.04,  shall  contravene  any Legal  Requirement with  respect  to  exculpatory  agreements, the liability of the party in question shall be deemed not released, but no action or rights shall be sought  or enforced against such party unless and until all rights and remedies against the other’s insurer are exhausted and  the other party shall be unable to collect such insurance proceeds.                  B.     The  waiver  of  subrogation  referred  to  in  Subsection 8.04A  above  shall  extend  to  the  agents and employees of each party, but only if and to the extent that such waiver can be obtained without additional  charge (unless such party shall pay such charge).  Nothing contained in this Section 8.04 shall be deemed to relieve  either party from any duty imposed elsewhere in this Lease to repair, restore and rebuild.          Section 8.05   In the event of any permitted sublease or occupancy (by a person other than Tenant) of all  or a portion of the Demised Premises, all of the covenants and obligations on the part of Tenant set forth in this  Article  8  shall  bind  and  be  fully  applicable  to  the  subtenant  or  occupant  (as  if  such  subtenant  or  occupant  were  Tenant hereunder) for the benefit of Landlord and the Board.                                             ARTICLE 9.                                                                                          FIRE OR CASUALTY          Section 9.01   If  the  Demised  Premises or  the  Building or  any  part thereof  (including  the  Building  Systems  serving  the  Demised  Premises,  the  Common  Elements  that  form  a  part  of  the  Demised  Premises and  portions of the Common Elements or other portions of the Building affecting access to the Demised Premises) shall  be damaged by fire or other insured casualty, Tenant shall give prompt notice thereof to Landlord upon obtaining  knowledge of same and Landlord shall, if this Lease is not terminated and subject to the provisions of Sections 9.02,  9.03 and 31.17, repair or cause to be repaired such damage at Landlord’s expense to the condition of the Demised  Premises  existing  on  the  Commencement  Date  of  the  Lease  Term  (i.e.,  with  Landlord’s  Work and  Landlord’s  Additional  Work completed) and  to  cause  the  Board  to  repair  the  Common Elements  to  the  condition  existing  immediately  prior  to  the  date  of  the casualty  (if  and  to  the  extent  the  Board  is  required  to  do  so  under  the  Condominium Documents) (“Landlord’s Restoration Work”).  If the Demised Premises, or any part thereof, shall be  rendered untenantable by reason of such fire or other insured casualty, then Fixed Rent and Recurring Additional  Rent hereunder,  or  an  amount  thereof  apportioned  according  to  the  area  of  the  Demised  Premises  so rendered  untenantable (if less than the entire Demised Premises shall be so rendered untenantable), shall be abated for the  period from the date of such damage to the date when Landlord completed Landlord’s Restoration Work; provided,  however,  that  (a)  such  abatement  shall  continue  after  the  date  that  Landlord  shall  have  substantially  completed  Landlord’s Restoration Work until the earlier of (x) ninety (90) days following the date of such damage, and (y) the  day  immediately  preceding  the  date  when  the  Demised Premises  shall  be  rendered  useable  for  the  conduct  of  Tenant’s business therein, but only if, at all times following Landlord’s delivery of the Demised Premises to Tenant  for the performance of Tenant’s restoration of the Demised Premises as improved by Tenant’s Initial Installations  and any other permitted Alterations (“Tenant’s Restoration Work”), Tenant shall have proceeded with diligence and  continuity to effectuate completion of Tenant's Restoration Work and (b) if the portion of a floor(s) of the Demised  Premises that is damaged (which shall consist of at least fifty percent (50%)  of the Rentable Square Footage of such  floor(s)), or the performance of Landlord’s Restoration Work renders the remainder of such floor(s) of the Demised  Premises untenantable and, as a result thereof, Tenant does not, in fact, use the balance of such floor(s) (other than  the presence of emergency or security personnel solely to secure or retrieve files and/or equipment or to maintain the  Demised Premises in good repair) and delivers a certification to Landlord stating the same, then such entire floor(s)  shall be deemed untenantable.  If Landlord, Overlandlord or any Mortgagee (as applicable) shall be unable to collect  the  rent insurance  proceeds  applicable  to  such damage  because  of the  willful  and wrongful action or  willful  and  wrongful inaction on the part of Tenant or of Persons Within Tenant’s Control (such as the failure to execute a form  or affidavit required by the insurance company), occurring after such fire or other casualty, then, provided that, after  Landlord shall have given Tenant notice of such willful and wrongful action or such willful and wrongful inaction  and a reasonable opportunity to cure the same, Tenant shall have failed to so cure such willful and wrongful action  or such willful and wrongful inaction in such manner that Landlord, Overlandlord or any such Mortgagee would                                                  -41-    NY 78267766v2 

 

otherwise  be  entitled  to  collect  such  proceeds, then  there  shall  be  no  abatement  of  Fixed  Rent or  Recurring  Additional  Rent.   Tenant  covenants  and  agrees  to  cooperate  with  Landlord,  the  Board and  any  Overlandlord  or  Mortgagee in their efforts to collect insurance proceeds (including rent insurance proceeds) payable to such parties.   Landlord shall not be liable for any reasonable delay in the completion of Landlord’s Restoration Work which may  arise by reason of adjustment of insurance on the part of Landlord and/or Tenant, or any event of Force Majeure.   For purposes of this Article 9, “untenantable” shall mean that the Demised Premises or any portion thereof (a) is so  damaged from  fire or  other  casualty  that Tenant’s  regular business  can  no  longer  be  conducted  at  the  remaining  portion of the 14th Floor Unit, 15th Floor Unit or 16th Floor Unit or the Demised Premises or (b) is inaccessible, and  “inaccessible” shall mean, with respect to any floor of the Demised Premises, that Tenant is deprived of reasonable  access to such floor and Landlord shall not have provided or undertaken steps to provide other reasonable means of  access thereto.            Section 9.02   Landlord shall not be liable for any inconvenience or annoyance to Tenant or injury to  the business of Tenant resulting in any way from damage from fire or other casualty or Landlord’s Restoration Work  (it being agreed that Landlord shall (a) perform Landlord’s Restoration Work that is to be performed by Landlord  hereunder in accordance with the terms of Article 13 hereof, in a good and workmanlike manner and in compliance  with all applicable Legal Requirements, and (b) cause the Board to repair the Common Elements in accordance with  the  Condominium  Documents).   Tenant  understands  that  Landlord,  in  reliance  upon  the  provisions  set  forth  in  Section 8.03  above,  may  elect  not  to  carry  insurance  on  some  or  any  of  (i) Alterations,  equipment,  furnishings,  furniture, fixtures, interior glass, appurtenances, contents, private bathrooms and bathroom fixtures in the Demised  Premises, and (ii)  sprinkler  loop  and  distribution  pipes  and  heads  and/or  any  HVAC  piping,  ducts,  VAV boxes,  VAV controllers and components of a distribution system (but, with respect to each item set forth in this clause (ii),  only if and to the extent that the same is either (x) installed by Tenant or by any Persons Within Tenant’s Control, or  (y)  located  entirely  within  the  Demised  Premises  and  exclusively  serving  the  Demised  Premises),  and  that,  regardless of whether Landlord does carry such insurance, Landlord shall not be obligated to repair (or cause the  Board to repair) any damage thereto or replace (or cause the Board to replace) the same unless same was part of  Landlord’s Restoration Work, but the foregoing shall not be construed to limit the obligation of Landlord to enforce  any repair or restoration obligation of the Board pursuant to the Condominium Documents.          Section 9.03   Notwithstanding anything to the contrary contained in Sections 9.01 and 9.02 above, in  the event that:                         (i)     the  Building  shall  be  damaged  by  fire  or  other  casualty  to  the  extent  that  substantial alteration or reconstruction of the Building shall be required pursuant to the terms of the Condominium  Documents  (whether  or  not  the  Demised  Premises  shall  have  been  damaged  by  such  fire  or  other  casualty  and  without regard to the structural integrity of the Building) and the Board (or Owners, as applicable) shall have voted  not to repair or restore the Building,                         (ii)    the  Demised  Premises  are  totally  or  substantially  damaged  or  are  rendered  wholly or substantially untenantable,                         (iii)    the 7-21 Condominium is totally or substantially damaged such that (1) the time  period for restoring or repairing same (as set forth in the Contractor’s Estimate) shall exceed twelve (12) months  from the date of casualty and (2) the cost required to repair or restore the same shall exceed 33% of the insurable  value of the 7-21 Condominium immediately prior to such casualty, provided that, if the Demised Premises shall not  have been damaged (but the 7-21 Condominium is totally or substantially damaged as aforesaid), Landlord agrees to  only terminate this Lease if Landlord also terminates all other leases for office space in the 7-21 Condominium that  is owned by Landlord (excluding space, if any, occupied by Landlord or any affiliate of Landlord), or                         (iv)    there is any damage to the Demised Premises within the last year of the Lease  Term, and the time period set forth in the Contractor’s Estimate shall exceed the lesser of (1) twelve (12) months  and (2) the amount of time then remaining in the Lease Term,          then Landlord may, in Landlord’s sole and absolute discretion, terminate this Lease and the term and estate  hereby  granted,  by  notifying  Tenant  of  such  termination  within ninety (90)  days  after  the  date  of  such  damage;  provided, however, that solely if Landlord elects to terminate the Lease pursuant to clause (iv) above, following a                                                  -42-    NY 78267766v2 

 

casualty in which only a part (but not all) of the Demised Premises are damaged, Tenant shall have the right to elect  by  notice  to  Landlord  delivered  within fifteen  (15) Business  Days  following  Tenant’s  receipt  of  Landlord’s  termination notice, that Landlord terminate the Lease (pursuant to clause (iv) above) only with respect to the entirety  of the Demised Premises located on each of the floor(s) on which such damage was incurred.  In the event that such  a  notice  of  termination  shall be  given,  then  this  Lease  and  the term and  estate  hereby granted  shall  expire (with  respect to the entire Demised Premises or the applicable portion thereof) as of the date of termination stated in said  notice with the same effect as if that were the date hereinbefore set for the expiration of the Lease Term, and the  Fixed Rent and Recurring Additional Rent hereunder shall be apportioned as of such date, provided, however, that  Tenant  shall  have  the  right  to  extend such  termination  date  for  an  additional  ninety  (90)  days  upon  notice  to  Landlord (the  “Extension  Notice”) within  thirty  (30)  days  after  receipt  of  Landlord’s  notice;  it  being  expressly  agreed that if Tenant fails to deliver the Extension Notice to Landlord within the thirty (30) day period set forth  above  TIME  BEING  OF  THE  ESSENCE,  Tenant  shall  be  deemed  to  have  waived  the  right  to  extend  such  termination date.          Section 9.04                     A.     If all or any portion of the Demised Premises is rendered untenantable by fire or other  casualty, Landlord shall, if Landlord has not terminated this Lease pursuant to the provision of Section 9.03 above,  within sixty (60) days after such fire or casualty, deliver to Tenant an estimate prepared by a reputable, independent  contractor  selected  by  Landlord  setting  forth  such  contractor’s  estimate  as to  the  time  reasonably  required  to  substantially  complete  Landlord’s  Restoration  Work  (the “Contractor’s  Estimate”).   If (i) the period  to  repair  set  forth  in  the  Contractor’s  Estimate  exceeds  twelve  (12)  months, and  (ii)  more  than fifteen percent  (15%)  of  the  Demised Premises shall be rendered untenantable by such fire or other casualty, Tenant may elect to terminate this  Lease,  but  only  by notice  given  to  Landlord  not  later  than  forty-five  (45)  days following Tenant’s  receipt  of  the  Contractor’s Estimate.  If Tenant shall exercise such election to terminate this Lease, the Lease Term shall expire  upon the date specified in the notice but no later than forty-five (45) days after notice of such election is given by  Tenant with the same force and effect as if such date were originally provided herein as the Expiration Date, and the  Fixed Rent and Recurring Additional Rent hereunder shall be apportioned as of such date.  If Tenant shall not have  terminated  this  Lease  (or is  not  entitled  to  so  terminate  this  Lease)  and  Landlord  shall  not  have  substantially  completed Landlord’s Restoration Work within a period of twelve (12) months from the date of such damage or  destruction (which period may be extended by the number of days, if any, as shall equal the aggregate number of  days that Landlord is delayed in performing Landlord’s Restoration Work by reason of adjustment of insurance loss  (which extension shall not exceed an aggregate of ninety (90) days) or Tenant’s Delay or Force Majeure (which  extension shall not exceed an aggregate of ninety (90) days)), then Tenant may terminate this Lease by notice given  to Landlord within Forty-five (45) days after the expiration of such twelve (12) months or longer (by reason of any  such extension) period, effective as of a date specified in such notice, which shall be not more than forty-five (45)  days after the giving of such termination notice, and the term of this Lease shall expire on such date with the same  force and effect as if such date were originally provided hereinbefore as the Expiration Date, and the Fixed Rent and  Recurring Additional Rent hereunder shall be apportioned as of such date.                   B.     Notwithstanding anything  to  the  contrary  contained  in  the  foregoing  provisions  of  Subsection 9.04A, in the event that (i) more than thirty percent (30%) of the 14th Floor Unit, the 15th Floor Unit, or  the 16th Floor Unit (or any other full floor of the Building then constituting a part of the Demised Premises) or (ii)  more than thirty percent (30%) of the Demised Premises, in either case, shall be damaged by fire or other casualty  during the last two (2) years of the Lease Term, and the time period set forth in the Contractor’s Estimate for the  substantial completion of Landlord’s Restoration Work shall exceed sixty (60) days, then Tenant may terminate this  Lease and the term and estate hereby granted with respect to: in the case of the foregoing clause (i), solely the 14th  Floor Unit, the 15th Floor Unit or the 16th Floor Unit (or any other full floor of the Building then constituting a part  of the Demised Premises) that was damaged as aforesaid, or (ii) in the case of the foregoing clause (ii), the Demised  Premises, as applicable, but only by notifying Landlord of such termination within forty-five (45) days following  Tenant’s receipt of the Contractor’s Estimate.  In the event that such a notice of termination shall be given, then this  Lease and the term and estate hereby granted shall expire with respect to such Unit or the Demised Premises, as  applicable, as  of  the  date  of  termination  stated  in  said  notice  with  the  same  effect  as  if  that  were  the  date  hereinbefore set for the expiration of the Lease Term, and the Fixed Rent and Recurring Additional Rent hereunder  shall be apportioned as of such date.                                                  -43-    NY 78267766v2 

 

       Section 9.05   Except as may be provided in Section 8.04, nothing herein contained shall relieve Tenant  from any liability to Landlord, the Board or to insurers of Landlord and the Board in connection with any damage to  the Demised Premises, the 7-21 Condominium or the Building by fire or other casualty if Tenant shall be legally  liable in such respect.  Accordingly, and notwithstanding anything to the contrary contained in this Section 9.05, if  and to the extent that Tenant shall fully comply with the provisions of Section 8.04 above, Tenant shall not be liable  to Landlord with respect to any damage or loss described in Subsection 8.03B above.          Section 9.06   Notwithstanding anything in this Lease to the contrary, if Landlord or Tenant exercises  any right to terminate this Lease following a fire or other casualty in accordance with the terms of this Article 9, any  insurance proceeds actually received by Landlord or Tenant on account of any damage to (i) Landlord’s Work and  Landlord’s Additional Work shall be the sole property of Landlord, and (ii) the leasehold improvements constituting  Tenant’s  Initial  Improvements  in  excess  of  the  amount  of  the  then  unamortized  Landlord’s  Contribution and  all  other Alterations (except as set forth in clause (i) above) shall be the sole property of Tenant; provided, however,  that any insurance proceeds actually received by Landlord and furnished to Tenant in accordance with the foregoing  clause  (ii)  shall  be  used  by  Tenant to  repair  Tenant’s  Initial  Improvements  to  the  condition  of  Tenant’s  Initial  Improvements existing immediately prior to the occurrence of the fire or other casualty.  For purposes hereof, the  amount of the unamortized Landlord’s Contribution shall be equal to the then unamortized amount, computed as of  the termination date of this Lease, of Landlord’s Contribution.  For purposes of determining the unamortized amount  hereunder, Landlord’s Contribution shall be amortized over the Lease Term on a straight-line basis without interest.          Section 9.07   Tenant shall throughout the Lease Term provide fire wardens and searchers as required  under NYC Local Law No. 5 of 1973, as heretofore and/or hereafter amended.          Section 9.08   Tenant shall endeavor to give Landlord notice of the occurrence of any fire, casualty or  other accident in the Demised Premises promptly after Tenant becomes aware thereof.  If Tenant shall fail to provide  such notice, Landlord shall not be relieved of any obligations under this Article 9; provided, however, that, in order  for Tenant to make any claim against Landlord with respect thereto, Tenant must first have given notice to Landlord  (or Landlord must have actual knowledge) of such fire or casualty in the Demised Premises.          Section 9.09   This Lease shall be considered an express agreement governing any case of damage to or  destruction of the Building or any part thereof by fire or other casualty, and Section 227 of the Real Property Law of  the State of New York (providing for such a contingency in the absence of express agreement), and any other law of  like import now or hereafter in force, shall have no application in such case.                                             ARTICLE 10.                                                                                    ASSIGNMENT AND SUBLETTING          Section 10.01                    A.     Except as expressly permitted in this Article 10, neither this Lease nor the term and estate  hereby granted, nor any part hereof or thereof, will be assigned, or advertised for assignment, mortgaged, pledged,  encumbered or otherwise transferred, by operation of law or otherwise, and that neither the Demised Premises, nor  any  part  thereof,  will be  sublet  or  advertised  for  subletting  or  occupied by  anyone  other  than  Tenant,  or  for  any  purpose other than as hereinbefore set forth, without the prior consent of Landlord (which consent, unless expressly  provided  to  the  contrary  in  this  Article  10,  may  be  granted,  withheld  or  conditioned  in  Landlord’s  absolute  discretion) and the Board (if required under the Condominium Documents, but subject to the Board SNDA and the  Board Consent) in every case; provided, however, that Tenant shall have the right to advertise the Demised Premises  for subletting, but only if such advertisement(s) does not list or refer to any economic terms with respect to such  subletting, it being agreed that nothing contained in this Subsection 10.01A prohibits Tenant (or any other permitted  occupant  of  the  Demised  Premises)  from  (x)  consummating  a  subletting  at  a  rental  rate  that  is  less  than  such  prevailing rate, or (y) disseminating broker's fliers or other marketing materials that indicate that the rental rate for  the Demised Premises (or the applicable portion thereof) is available upon request.                  B.     Subject to the further provisions of this Article 10, the direct or indirect transfer of fifty  (50%) percent or more (aggregating all multiple and/or prior transfers during the Lease Term) of:  (i) the shares of a                                                 -44-    NY 78267766v2 

 

corporate  tenant,  or  (ii) the  shares  of  any  corporation  of  which  Tenant  is  an  immediate or  remote  subsidiary,  or  (iii) the  beneficial  or  legal  interests  of  a  tenant  that  is  a  business  entity  other  than  a  corporation,  in  each  case  including transfers by operation of law, and including a related or unrelated series of transactions, shall be deemed  an assignment of this Lease for the purposes of this Article 10.  For the purposes hereof, “shares” of a corporate  tenant or other corporation shall be deemed to include:  (x) the issued and outstanding shares of any class of the  voting stock of a corporation, and/or (y) the issued and outstanding shares of any class of convertible non-voting  stock, debentures or securities of a corporation.  Issuance of new corporate shares of a corporation or partnership  interests  by  a  partnership,  and/or  the  issuance of  a new  class  of  voting  stock  or  convertible  non-voting  stock  or  debentures or securities of a corporation which results in a transfer of control of that corporation, or the execution of  an agreement affecting the power to vote fifty (50%) percent or more of the issued and outstanding shares of any  class of stock or securities of a corporation, shall each be deemed to be a “transfer” for the purposes hereof.  In order  to implement the foregoing provisions (but subject to the provisions of Subsection 10.02C below), if Tenant shall be  a corporation, then, within fifteen (15) days following Landlord’s request therefor, Tenant shall furnish to Landlord  a  statement  verified  by  an  officer  of  Tenant  setting  forth  the  details  of  the  then  present  ownership  and  all prior  transfers of the issued and outstanding stock of the corporation (an “Ownership and Transfer Statement”), and such  other information relating to such stock ownership and transfer of stock or securities as Landlord may reasonably  request in such notice; provided, however, that with respect to such statement, Tenant shall not be (1) required to  furnish such information to Landlord with respect to any person that holds less than a twenty-five percent (25%)  ownership interest in Tenant, or (2) required to deliver an Ownership and Transfer Statement to Landlord more than  once per calendar year, unless at least twenty-five percent (25%) or more of the stock or other interests in Tenant has  been transferred to a person or entity not previously identified in the most recent Ownership and Transfer Statement,  in which case Tenant shall deliver a new Ownership and Transfer Statement to Landlord within ten (10) Business  Days after such change in the ownership of stock or other interests in Tenant.                    C.     If Tenant shall be a business entity other than a corporation, and provided that such action  shall be taken for a valid business purpose other than (and not principally for) the purpose of transferring Tenant’s  interest in  this  Lease,  then  this  Section  10.01  shall  not  be  construed  to  prohibit  Tenant’s  conversion  into  a  professional corporation, a limited liability entity, professional association or other type of business entity.            Section 10.02                    A.     Tenant may sublet all or part of the Demised Premises, or assign Tenant’s entire interest  in  this  Lease  and  the  leasehold  estate  hereby  created,  to a  corporation  or  other  business  entity  that  controls,  is  controlled by or is under common control with, Tenant (herein referred to as a “Related Entity”), without Landlord’s  consent thereto, provided that (i) no Event of Default shall have occurred and be continuing on the effective date of  such assignment or subletting, (ii) not less than ten (10) days prior to such subletting or assignment (subject to the  provisions of Subsection 10.02F below), Tenant shall furnish Landlord notice thereof accompanied by a certification  of  an  officer  of  Tenant  that  such  subtenant  or  assignee is  a  Related  Entity  of  Tenant,  (iii) with respect  to  an  assignment  of  this  Lease, such  assignee  assumes  all  of  Tenant’s  obligations  hereunder, and  (iv)  the  subtenant or  assignee thereunder shall continue to be a Related Entity of Tenant.  If, at any time, said subtenant or assignee shall  cease to be a Related Entity, then the continued use and occupancy of the Demised Premises, or any portion thereof,  by said subtenant or assignee shall be subject to all of Landlord’s rights set forth in this Article 10 with respect to a  proposed subtenant or assignee who is subject to the provisions of Sections 10.03, 10.04 and 10.07 below (including  Landlord’s right to exercise any of the Recapture Options and be paid Profit), and Tenant shall comply with all of  the provisions set forth in this Article 10 with respect to a proposed subletting or assignment.  In connection with the  information to be provided to Landlord pursuant to this Subsection 10.02A, Tenant shall, within thirty (30) days  after request therefor by Landlord (which request shall not be made more often than once per calendar year, absent  extenuating  circumstances),  deliver  to  Landlord a  certificate  of  a  senior  officer  of  Tenant  certifying that  such  subtenant or assignee remains a Related Entity of Tenant.  In the case of a subletting, such subletting shall not be  deemed to vest in any such Related Entity any right or interest in this Lease or a direct grant by Landlord of any  right to occupy the Demised Premises, nor shall it relieve, release, impair or discharge any of Tenant's obligations  under this Lease (including the obligation not to allow the Demised Premises to be used for any use or purpose other  than the Authorized Use).  In the case of an assignment, the assignor tenant shall not be relieved or released from the  performance of any of Tenant’s obligations under this Lease, nor shall such assignment be construed to impair or  discharge any of said obligations; provided, however, that solely in connection with an assignment of this Lease to a  Successor Entity that complies with the terms of Section 10.02B below, Landlord shall, upon request from Tenant,                                                  -45-    NY 78267766v2 

 

execute and deliver an agreement reasonably acceptable to Landlord and Tenant whereby Tenant shall be released  from all of its obligations and liabilities under this Lease arising from and after the date of such assignment.  For the  purposes of this Article 10, the term “control” shall be deemed to mean ownership of more than fifty (50%) percent  of  all  of  the  voting  stock of such  corporation,  or more  than  fifty (50%) percent of  all of  the  legal  and  equitable  interest in any other business entity. Notwithstanding anything herein to the contrary, Tenant shall have the right, at  any time during the Lease Term, subject to the satisfaction of all of the conditions and requirements of this Section  10.02A, to sublease all or a portion of the Demised Premises to CompassLEXECON, which entity Tenant represents  is, as of the Effective Date, a Related Entity of Tenant.                   B.     Notwithstanding the provisions of Subsection 10.01 above, upon not less than ten (10)  days  prior notice  to  Landlord (subject  to  the  provisions  of  Subsection  10.02F  below) and  subject  to  Tenant’s  compliance with all of the requirements set forth in this Subsection 10.02B, Tenant may assign or transfer Tenant’s  entire interest in this Lease and the leasehold estate hereby created to a an entity that succeeds Tenant hereunder (a  “Successor Entity”) without being required to obtain Landlord’s prior consent thereto, provided that (i) no Event of  Default shall have occurred and be continuing on the effective date of such assignment or transfer,, (ii) the proposed  occupancy shall not increase (other than to a de minimis extent) the cleaning or maintenance requirements in the  Demised Premises or impose an extra burden upon the Building equipment or Building services with respect to the  Demised  Premises  in  excess  of  the  cleaning  or  maintenance  requirements  that  a  typical  office  occupant  would  impose therein or thereon, and (iii) the proposed assignee shall not be entitled, directly or indirectly, to diplomatic or  sovereign immunity, and shall be subject to the service of process in, and the jurisdiction of the courts of, the State  of  New York.  The  term  “Successor  Entity”  shall  mean  any  of  the  following:   (x)  an  entity  created  by merger,  reorganization, consolidation or recapitalization of or with Tenant; or (y) an entity acquiring the goodwill and all or  substantially  all  of  the  assets  of, or  beneficial  interests  in, Tenant, or  all or substantially  all  of  the  assets  of, or  beneficial interests in, an operating division, group or department of Tenant or all or substantially all of the business  conducted by Tenant in the Demised Premises; or (z) any successor to a Successor Entity becoming such by either  of  the  methods  described  in clauses  (x)  and  (y)  above; provided  that,  in  each  case:   (1)  such  transaction  is  not  effected for the primary purpose of transferring the leasehold estate created hereby, (2) the Successor Entity assumes  (whether  by  operation  of  law  or  by  effective  provisions  contained  in  the  applicable  instrument  effecting  the  transaction) all or substantially all of the liabilities of Tenant hereunder, (3) immediately after giving effect to any  such transaction the Successor Entity shall have a net worth, as determined in accordance with generally accepted  accounting  principles  and  certified  to  Landlord  by  an  independent  certified  public  accountant,  at  least  equal  to  $1,000,000,000,  and  (4)  a  copy  of  the  financial  statements  of  the  Successor  Entity  certified  by  an  independent  certified public accountant designated by the Successor Entity (it being agreed that such financial statements may be  certified by an executive financial officer of the Successor Entity if certified financial statements are not regularly  prepared for the Successor Entity by a certified public accountant), shall have been delivered to Landlord at least ten  (10) days prior to the effective date of any such transaction (subject to the provisions of Subsection 10.02F below).                  C.     The  transfer  of any  of the outstanding  capital  stock  of  any  corporate  tenant or  of  any  entity holding direct or indirect interests in such corporate tenant and a private or public issuance, sale, conveyance,  pledge, redemption, encumbrance or other disposition or transfer of equity or debt of any member of such corporate  tenant shall not be deemed an assignment of this Lease (and Tenant shall not be required to furnish Landlord with  the information described in the last sentence of Subsection 10.01B above) if such corporate tenant is listed in any  recognized stock exchange or if such transfer shall be, in connection with an initial public offering or otherwise,  effected by the sale of such stock through the “over-the-counter-market” or through any recognized stock exchange,  unless such stock shall be sold, transferred or otherwise conveyed by persons deemed “insiders” within the meaning  of the Securities Exchange Act of 1934, as amended.  In furtherance of the foregoing, the transfer of a majority of  Tenant’s stock or other direct or indirect ownership interest or transfers among existing owners, members or partners  of Tenant, as the case may be, shall not be deemed an assignment of this Lease, but only if: (i) such transfer(s) is  made for a legitimate business purpose and not for the purpose of transferring this Lease, (ii) there is no change in  the day-to-day control and operation of Tenant’s business operations, and (iii) immediately after giving effect to any  such transfer, the corporation or other business entity surviving such transfer shall have a net worth, as determined  in  accordance  with  generally  accepted  accounting  principles  and  certified  to  Landlord  as  being  correct  by an  executive financial officer of Tenant, at least equal to $1,000,000,000.                  D.     Notwithstanding anything to the contrary contained in this Article 10, provided that no  Event  of  Default  shall  have  occurred  and  be  continuing,  Tenant  shall  have  the  right,  without  the  consent  of                                                  -46-    NY 78267766v2 

 

Landlord, to permit a portion of the Demised Premises (not to exceed, in the aggregate, fifteen (15%) percent of the  then total number of rentable square feet in the Demised Premises) to be used or occupied under a so-called “desk  sharing agreement” by any Service Provider or Desk Space User but only for the Authorized Use and only for such  period  as such  Service  Provider  or  Desk  Space  User  shall  remain  a  Service  Provider  or  Desk  Space  User  (collectively,  a  “Desk  Sharing  Entity”).  However,  no  such  desk  sharing  agreement  shall  be  permitted  or  valid,  unless, at least ten (10) days prior to a Desk Sharing Entity taking occupancy of a portion of the Demised Premises,  Tenant  shall  have  given  notice to Landlord  of  (1)  the  name  and  address  of  such  Desk  Sharing  Entity,  (2)  the  character and nature of the business to be conducted by such Desk Sharing Entity, (3) the number of square feet of  rentable area to be occupied by such Desk Sharing Entity, (4) the duration of such occupancy, and (5) the rent, if  any, to be paid by such Desk Sharing Entity for its use of the applicable portion of the Demised Premises.  Upon  request of Landlord (which shall not be made by Landlord more frequently than once every 4 months), Tenant shall  deliver to Landlord a copy of the agreement, if any, relating to the use or occupancy of such portion of the Demised  Premises by such Desk Sharing Entity, which agreement shall be subject and subordinate to the terms of this Lease  and, notwithstanding such desk sharing agreement, Tenant shall remain fully liable for all of Tenant's obligations  under this Lease.  Furthermore, (i) no demising walls may be erected in the Demised Premises separating the space  used by a Desk Sharing Entity from the remainder of the Demised Premises (it being agreed that the foregoing shall  not prevent Tenant from installing movable partitions to create separate rooms within the Demised Premises for use  by a Desk Sharing Entity, which movable partitions shall be deemed to be Tenant’s Movable Property hereunder),  (ii) the use of any portion of the Demised Premises by any Desk Sharing Entity shall not create any right, title or  interest of the Desk Sharing Entity in or to the Demised Premises, and (iii) the Desk Sharing Entity may not pay for  its occupancy rights an amount greater than the Fixed Rent and Recurring Additional Rent (at the rate then being  paid by Tenant pursuant to this Lease) that is reasonably allocable to the portion of the Demised Premises that the  Desk Sharing Entity has the right to occupy.   As used herein, the term (a) “Service Provider” means a person or  entity with whom Tenant has contracted to perform certain functions for Tenant’s business on a regular, ongoing  basis; and (b) “Desk Space User” means a bona fide client, service provider, or other person or entity with which  Tenant has a material, ongoing business relationship (but excluding Service Providers).                   E.     Except  as  expressly  provided  in  the  second  sentence  of  Section  10.02A,  Landlord’s  Recapture Option and right to be paid a Profit shall not be applicable with respect to any assignment, sublease or use  and occupancy effected pursuant to the terms of this Section 10.02.                   F.     Notwithstanding the provisions of Subsections 10.02A or 10.02B above, if, because of a  confidentiality  requirement, Tenant  shall  not  be  able  to  disclose  in  advance  to  Landlord  the  occurrence  of  a  transaction described in said Subsections 10.02A or 10.02B, Tenant may assign or transfer Tenant's entire interest in  this Lease and the leasehold estate hereby created to a Related Entity or Successor Entity prior to notifying Landlord  thereof,  provided  that  Tenant  shall  comply  in  all  other  respects  with  the  requirements  of  Subsection  10.02A  or  10.02B,  as  applicable, and  shall  submit  all  required  information  to  Landlord  not  later  than  the  tenth  (10th)  day  following the effective date of such transaction.  If for any reason whatsoever Tenant shall not comply with all of  said requirements within such time period and such transaction was not, in fact, expressly permitted “as of right”  (i.e., without the need for any consent by Landlord) pursuant to Subsection 10.02A or 10.02B, as applicable, said  transaction shall be deemed a prohibited assignment or transfer of this Lease.           Section 10.03                    A.     (i)     Except  as  permitted  pursuant  to Section  10.02  above, and  subject  to  the  provisions of Section 31.17 below, if Tenant shall desire to assign this Lease or to sublet all or substantially all of  the  Demised  Premises  for  all  or  substantially  all  of  the  balance  of  the  Lease  Term  (which  for  purposes of  this  Section 10.03A shall mean that at the expiration of the term of the proposed sublease, less than one (1) year shall  remain in the Lease Term), Tenant shall first give Landlord notice thereof (the “Recapture Offer Notice”), which  notice shall (x) specify the desired effective date of any such assignment or commencement date of such sublease  (the “Recapture Date”) (which date shall not be earlier than the thirtieth (30th) day nor later than the two hundred  seventieth (270th) day following the date of the Recapture Offer Notice), (y) specify the material economic terms  Tenant is willing to accept from a proposed subtenant or assignee, and (z) in the case of a proposed sublease of less  than  all  of  the  Demised  Premises,  be  accompanied  by  (I)  a  floor  plan  of  the  space  proposed  to  be  sublet  (the  “Recapture  Space”),  and  (II) an  allocation  of  responsibility  between  Tenant  and  the  proposed  subtenant for  the  Demising Costs.                                                    -47-    NY 78267766v2 

 

                      (ii)    Such Recapture Offer Notice shall be deemed an offer from Tenant to Landlord  whereby  Landlord  shall  have  the  option  to  (x)  in  the  case  of  a  proposed  assignment  of  this  Lease,  cancel  and  terminate this Lease as of the proposed effective date of such assignment, or (y) in the case of a proposed sublease  of all or substantially all of the Demised Premises, cancel this Lease only with respect to the Recapture Space as of  the proposed effective date of such sublease (the “Recapture Option”), which Recapture Option may be exercised by  notice  given  to  Tenant  (the  “Recapture  Notice”)  within twenty  (20) days  after  Landlord  shall  have  received  the  Recapture Offer Notice from Tenant with respect to the proposed assignment or subletting, accompanied by all of  the information set forth in Subdivision 10.03A(i) above.                         (iii)   If  Landlord  exercises  the  Recapture  Option  set  forth  in  Section  10.03A(ii)(x)  above, then this Lease and the term and estate hereby granted shall expire as of the Recapture Date with the same  effect as if that were the date hereinbefore set for the expiration of the Lease Term, and the Fixed Rent and the  Recurring  Additional  Rent  hereunder  shall  be  apportioned  as of  such  date.  If  Landlord  exercises  the  Recapture  Option set forth in Section 10.03A(ii)(y) above, then this Lease shall be deemed modified to exclude the Recapture  Space from the Demised Premises as of the Recapture Date, and all rents hereunder with respect to the applicable  Recapture Space or the entire Demised Premises (as the case may be) shall be adjusted as of such Recapture Date  based upon the relevant space affected thereby.                         (iv)    If  Landlord  shall  notify  Tenant  that  Landlord  elects  (or  if  Landlord shall be  deemed to have elected) not to exercise the Recapture Option, then Tenant shall have the right to assign this Lease  or  sublease  the  Demised  Premises  in  accordance  with  the  provisions  of  this  Article 10,  subject,  however,  to  the  provisions of the immediately following Subdivision 10.03A(v).                         (v)     If Landlord shall have notified Tenant that Landlord elects (or if, pursuant to the  provisions  of  Subdivision  10.03A(vi)  below,  Landlord  shall  be  deemed  to  have  elected)  not  to  exercise  the  Recapture  Option  and  Tenant shall  not  have  delivered  to  Landlord  an  Assignment/Sublet  Notice  within three- hundred  and  six  (306)  days thereafter  (the  “A/S  Completion  Period”),  then,  if  Tenant  shall  desire  to  assign  this  Lease or sublease the Demised Premises, Tenant shall be required to again deliver the Recapture Offer Notice and  otherwise  comply  with  the  foregoing  provisions  before  Landlord  shall  be  required  to  make  an  election  as  to  the  exercise of the Recapture Option.                         (vi)    If Landlord shall fail to deliver the Recapture Notice to Tenant within the twenty  (20) day period provided for in Subsection 10.03A(ii) above, then Tenant may deliver a second notice to Landlord,  in which case, provided that said second notice shall bear the following legend typed in bold, capital letters at the  top:   “IF  LANDLORD  SHALL  FAIL  TO  RESPOND  TO  NOTIFY  TENANT  WHETHER  LANDLORD  ELECTS TO EXERCISE ITS RECAPTURE OPTION WITHIN FIVE (5) BUSINESS DAYS, LANDLORD  SHALL BE DEEMED TO HAVE WAIVED ITS RIGHT TO EXERCISE SUCH RECAPTURE OPTION”, if  Landlord shall fail to exercise such Recapture Option within five (5) Business Days after Landlord’s receipt of such  second notice, then Landlord shall be deemed to have waived Landlord’s right to exercise the Recapture Option (but  only  with  respect  to  the  specific  Recapture  Offer  Notice  for  which  said 20-day  and  5-Business  day  periods  had  lapsed).                  B.     If Landlord exercises its Recapture Option with respect to a proposed sublease, Landlord  shall, by the Recapture Date, erect any required demising walls separating the Recapture Space from the balance of  the Demised Premises and make such alterations to the Demised Premises as are reasonably required so that the  Recapture Space can be legally occupied with separate mechanical and utility systems and the electrical capacity set  forth  herein  and  Tenant  shall  pay  to  Landlord  Landlord’s  actual  out-of-pocket  costs  in  connection  therewith  (“Demising Costs”) within thirty (30) days following demand therefor, but only to the extent Tenant would have  been  responsible  for  the  Demising  Costs  under  the  proposed  sublease  in  accordance  with  the  Recapture  Offer  Notice.  Upon exercising its Recapture Option and complying with the terms of this Section 10.03, Landlord shall be  free  to,  and  shall  have  no  liability  to Tenant  (or  to  any  broker  engaged  by  Tenant),  if  Landlord  shall  lease  the  Demised Premises (or any portion thereof) to any third party, including Tenant’s prospective subtenant or assignee.                   C.     Except as permitted pursuant to Section 10.02 above, in any case where Landlord shall  not  have  exercised  (or  shall  have been  deemed  to  have  waived)  Landlord’s Recapture  Option,  upon  executing  a  letter of intent or term sheet with any proposed assignee or subtenant during the A/S Completion Period, Tenant                                                  -48-    NY 78267766v2 

 

shall  give notice  thereof  to  Landlord  (an  “Assignment/Sublet  Notice”),  and  with  such  notice  shall  include  (i)  an  executed  copy  of  such  letter  of  intent  or  term  sheet  setting  forth  the  material  economic  terms of  the  proposed  transaction, (ii) a complete financial statement for the proposed assignee or sublessee, certified by certified public  accountants regularly retained by the proposed assignee or sublessee (it being agreed that such financial statements  may be uncertified solely if certified financial statements are not regularly prepared for the proposed assignee or  sublessee  by a  certified  public  accountant),  (iii) information  on  the nature  and  character  of  the  subtenant  and  its  proposed  use  of  the  Demised  Premises,  (iv) in  the  event  of  a  desired  subletting  of  less  than  all  of  the  Demised  Premises, a description and floor plan of the proposed sublease premises, and (v) within five (5) Business Days after  submission of the items set forth in the immediately preceding clauses (i) through (iv) above, any other information  reasonably  requested  by  Landlord.   Tenant  may  elect  to  deliver  an  Assignment/Sublet  Notice  to  Landlord  simultaneously  with  the  delivery  to  Landlord  of  the  Recapture  Notice.  Supplementing  the  provisions  of  this  Subsection  10.03C,  if  Tenant  provides  Landlord with  the  identity  of  the proposed  subtenant  or  assignee and  the  information  set  forth  in  items  (ii),  (iii),  (iv)  and  (v)  above  and  the  material  economic  terms  of  the  proposed  transaction,  Landlord  shall  promptly advise  Tenant  whether  or  not  Landlord  shall  consent  to  the  proposed  assignment or subletting.                  D.     For the purposes of this Article 10, the phrase “substantially all of the Demised Premises”  shall mean eighty percent (80%) or more of the Demised Premises.          Section 10.04                    A.     If Tenant shall have complied with the provisions of Section 10.03 above and Landlord  shall not have exercised the Recapture Option within the time period provided in said Section 10.03, then, subject to  the provisions of Section 31.17 below, Landlord shall not unreasonably withhold, condition or delay consent to the  proposed assignment of this Lease or a proposed subletting of all or a portion of the Demised Premises, provided  that Tenant shall not then be in default after Tenant shall have theretofore been given notice of any such default with  respect to any of Tenant’s monetary or material non-monetary obligations under this Lease and no Event of Default  shall have occurred that is then continuing, but subject in each case to the provisions of Subsection 10.04D below)  and provided further that the following additional conditions (which shall be in addition to, and not in lieu of, the  other terms, conditions and requirements set forth elsewhere in this Article 10) shall be satisfied:                         (i)     The proposed assignee or subtenant shall not be:  (a) a school of any kind, or an  employment or placement agency or governmental or quasi-governmental agency, or a real estate brokerage office  or medical office or executive recruitment office, or any retail bank or retail establishment, or (b) entitled, directly or  indirectly, to diplomatic or sovereign immunity, and the proposed assignee or subtenant shall be subject to service of  process in, and the jurisdiction of the courts of, the State of New York;                         (ii)    The subletting or assignment shall, in Landlord’s reasonable judgment, be to a  reputable person, whose occupancy will be in keeping with the dignity and character of the then use and occupancy  of the Building, and whose occupancy will not be more objectionable or more hazardous than that of Tenant herein  or  impose  any  additional  burden  upon  the  Building  equipment  or  Building  services  with  respect  to  the  Demised  Premises in excess of the cleaning or maintenance requirements that a typical office occupant would impose therein  or thereon (it being agreed, for the avoidance of doubt, that customary office use shall not be deemed to impose any  such additional burden on Landlord);                         (iii)   The proposed assignee or subtenant shall have, in the reasonable judgment of  Landlord, sufficient financial worth to perform the obligations of Tenant under this Lease in the event of an  assignment, or to perform the obligations of the subtenant in the event of a sublease;                         (iv)    No space shall be or have been advertised to the general public at a lower rental  rate than that being asked by Landlord at the time for similar space in the portions of the Building owned or leased  by Landlord, and Tenant shall not have made public any rental rate being sought or obtained by Tenant; provided,  however,  that  nothing  contained in  this  clause  (iii)  shall  either  (a)  prevent  Tenant  from  having  advertised  the  Demised Premises for subletting if such advertisement(s) did not list or refer to any economic terms with respect to  such  subletting,  or  (b)  prohibit  Tenant  (or  any  other  permitted occupant  of  the  Demised  Premises)  from  consummating a subletting at a rental rate that is less than such prevailing rate, or disseminating broker’s fliers or                                                  -49-    NY 78267766v2 

 

other  marketing  materials  that  indicate  that  the  rental  rate  for  the  Demised  Premises  (or  the applicable  portion  thereof) is available upon request.                         (v)     The  proposed  assignee  or  subtenant  (or  any  person  who  directly  or  indirectly  controls either  (a)  the  proposed  assignee  or  subtenant,  or  (b)  any  person  who  controls  the  proposed  assignee  or  subtenant) shall not be a tenant, subtenant, occupant or assignee of any premises in the Building that are owned by  Landlord or an affiliate of Landlord (“Landlord Owned Space”), or a party who dealt or negotiated with Landlord or  Landlord’s  agents or  affiliates  (directly  or  through  a  broker)  as  evidenced by  (x)  a  bona  fide  draft  or  term  sheet  (which may include offers or counterproposals via email), or (y) such third party visiting and/or touring the Demised  Premises with respect to the leasing of any Landlord Owned Space during the six (6) months immediately preceding  Tenant’s request for Landlord’s consent, but the foregoing restriction shall be applicable only if Landlord shall be  able to offer to such proposed assignee or subtenant comparably sized space in the Landlord Owned Space for at  least  a  comparable  term.   Promptly  following  Tenant’s  request  from  time  to  time,  Landlord  shall  advise  Tenant  whether a particular entity designated by Tenant shall be covered by the terms of this clause; and                         (vi)    If  required  by  the  Condominium  Documents (but  subject  to  the  Board  SNDA  and the Board Consent), the proposed subletting shall have been approved by the Board.                  B.     If Landlord shall fail to respond to Tenant’s submittal of an Assignment/Sublet Notice  (whether by the grant or denial of consent, or by a request for further information) within twenty (20) days after  Landlord’s receipt thereof, then Tenant may deliver a second notice to Landlord, in which case, provided that said  second notice shall bear the following legend typed in bold, capital letters at the top: “IF LANDLORD SHALL  FAIL  TO  RESPOND  TO  TENANT  IN  CONNECTION  WITH  THIS  SECOND  ASSIGNMENT/SUBLET  NOTICE  WITHIN  FIVE  (5)  BUSINESS  DAYS,  LANDLORD  SHALL  BE  DEEMED  TO  HAVE  CONSENTED THERETO AND HAVE WAIVED THE RECAPTURE OPTION IN ACCORDANCE WITH  THE PROVISIONS OF SUBSECTION 10.04B OF THE LEASE,”  if Landlord shall fail to respond to Tenant  within five  (5) Business  Days  after  Landlord’s  receipt  of  said  second  notice,  then,  as  Tenant’s  sole  remedy  in  connection  therewith,  Landlord  shall  be  deemed  to have  consented  to  the  proposed  assignment or  subletting and  have waived the Recapture Option.                   C.     In any case in which the Board shall withhold consent to a proposed assignment of this  Lease or a proposed subletting of all or any part of the Demised Premises, in either case in accordance with the  Condominium Documents (but subject to the Board SNDA and the Board Consent), then Landlord’s refusal to grant  consent to such proposed assignment or subletting shall be deemed to be a reasonable refusal to grant such consent.  The foregoing sentence shall  not be deemed to diminish the continuing obligation of Landlord hereunder to enforce  the provisions of the Condominium Documents against the Board.                  D.     Supplementing the provisions of Subsection 10.04A above, if:                         (i)     on  the  date  that  Tenant  shall  request  Landlord’s  consent  to  a  proposed  assignment of this Lease or a subletting of all or a portion of the Demised Premises, Tenant shall be in default (after  Tenant shall have theretofore been given notice of any such default) with respect to any of the monetary or material  non-monetary obligations of Tenant under this Lease, then Landlord’s obligation to respond to such request shall be  deemed suspended until such time as Tenant shall have cured such monetary or material non-monetary default.  If  Tenant shall cure such default within the applicable cure period, then Tenant’s consent request shall automatically  be deemed reinstated, but only if Tenant is then in compliance with all of the other applicable requirements of this  Article 10 that were applicable to Tenant’s request on the date Tenant initially requested Landlord’s consent; or                         (ii)    (I)  an  Event  of  Default  has  occurred  by  virtue  of  Tenant’s  failure  to  cure  a  monetary or material non-monetary default within the specified cure period pursuant to Subsection 10.04D(i) above,  or  (II)  an  Event  of  Default  shall  have  occurred  and  is  continuing  on  the  date  on  which  Tenant  shall  request  Landlord’s  consent  to  a  proposed  assignment  of  this  Lease  or  a  subletting  of  all  or  a  portion  of  the  Demised  Premises, then, in either case, Landlord’s obligation to respond to such request shall be deemed suspended until such  time as Tenant shall have cured such Event of Default and if (a) Tenant cures such Event of Default prior to the  EOD Cure Date, and Landlord shall not have terminated this Lease in accordance with Article 15 below by virtue of  such Event of Default, and (b) Tenant shall not be in default of any of Tenant’s other monetary or material non-                                                 -50-    NY 78267766v2 

 

monetary obligations under this Lease after notice of such default shall have been given to Tenant, in which event  Subsection 10.04D(i) above shall apply, and no other Event of Default shall have occurred that is then continuing, in  which  case  this  Subsection  10.04D(ii)  shall  apply),  then,  from  and  after  the  subject  EOD  Cure  Date,  Tenant’s  consent request shall automatically be deemed reinstated, but only if Tenant is then in compliance with all of the  other applicable requirements of this Article 10 that were applicable to when Tenant initially requested Landlord’s  consent.          Section 10.05  In the event of each and every permitted assignment of Tenant’s interest under this Lease  (other than an assignment by operation of law or by effective provisions contained in the instruments of merger,  consolidation or acquisition as expressly set forth in Subsection 10.02B above), the following provisions shall apply:                         (i)     The assignee shall assume and agree, in an agreement a copy of which shall be  delivered to Landlord on or before the effective date of such assignment, to perform all of the terms, conditions and  agreements  of  this  Lease  on  the  part  of  Tenant  to  be  kept,  performed  and  observed,  and,  except  as  otherwise  provided in Section 10.02A, to become jointly and severally liable with the assignor (and remote assignors, if any)  for the performance thereof to the extent such obligations arise from and after the effective date of such assignment  (it  being  understood  that  in  no  event  shall  such  assignee  be  liable  or  responsible  for  the  performance  of  any  obligations hereunder on Tenant’s part to be performed to the extent that such obligations arose prior to the effective  date of such assignment); and                         (ii)    Subject to the proviso contained in the last sentence of this Subsection 10.05(ii),  the terms, covenants and conditions of this Lease may be changed, altered or modified in any manner whatsoever by  Landlord  and  the  assignee  without  the  consent  thereto  of  the  Tenant  named  herein or  of  any  other  remote  or  immediate assignor.  The joint and several liability of the Tenant named herein and of any immediate and remote  successor-in-interest  of  Tenant  (by  assignment  or  otherwise),  and  the due performance  by  all  such  assignors  and  successors of each and every one of the obligations of this Lease on Tenant’s part to be performed or observed, shall  not  in  any  way  be  discharged,  released  or  impaired  by  any  (a)  such  change,  alteration  or  modification,  or  other  agreement  which  amends  any  of  the  rights  or  obligations  of  the  parties  under  this  Lease,  (b)  stipulation  which  extends the time within which an obligation under this Lease is to be performed, (c) waiver of the performance of an  obligation required under this Lease, or (d) failure to enforce any of the obligations set forth in this Lease; provided,  however, that, in the case of a change, alteration or modification made after the date of an assignment of this Lease  to an entity that is not a Related Entity, if and to the extent that such change, alteration or modification increases the  obligations of Tenant under this Lease, the assignor shall not be liable with respect to such increase; and                         (iii)   If  required  by  the  Condominium  Documents, but  subject  to  the  Board  SNDA  and the Board Consent, the proposed assignment shall have been approved by the Board.          Section 10.06                    A.     In  the  event  of  each  and  every  permitted  subletting  of  all  or  any  part  of  the  Demised  Premises, the following provisions shall apply:                         (i)     No  subletting  shall  be  for  a  term  ending  later  than  one  (1)  day  prior  to  the  Expiration Date of this Lease;                         (ii)    The  terms  of  the  sublease  agreement  shall  not  violate  (and  shall  not  allow  or  cause the violation of) any of the terms of this Lease and, subject to the terms of any applicable Subtenant SNDA,  the sublease agreement shall provide that it is and shall be subject and subordinate to this Lease and to all matters to  which this Lease is or shall be subordinate;                         (iii)   The  sublease  agreement  and  all  of  the  subtenant’s  rights  thereunder  shall  be  expressly  made  subject  to  all  of  the  obligations  of  Tenant  under  this  Lease,  and  to  the  further  condition  and  restriction that the sublease shall not be assigned, encumbered or otherwise transferred, or the subleased premises  further sublet by the subtenant in whole or in part, or any part thereof suffered or permitted by the subtenant to be  used or occupied by others, without the prior consent of Landlord and the Board (if required by the Condominium                                                  -51-    NY 78267766v2 

 

Documents, but subject to the Board SNDA and Board Consent) in each instance (which consent may be granted,  withheld  or  conditioned  in  the  sole  and  absolute discretion  of  both  Landlord  and (subject  to  the  Condominium  Documents, the Board SNDA and the Board Consent, the Board); provided, however, that first-tier sub-subleases (as  opposed to sub-sub-subleases or any subsequent tier subleases) shall be permitted provided any such proposed sub- subletting shall be subject to the same consent standards, as well as to Landlord's rights with respect to Recapture  Options  and  Profit  payments,  and  to  the  other  obligations  of  Tenant  set  forth  in  this  Article  10,  applicable  to  a  subletting by Tenant; and                         (iv)    No subletting or sub-subletting shall result in more than four (4) occupants per  full floor  of  the  Demised  Premises  (including  Tenant,  any  Desk  Sharing  Entity  and  any  parent,  affiliate  and/or  subsidiary of Tenant, all being counted as a single party, being in occupancy).                  B.     (i)  Notwithstanding anything to the contrary contained in Subsection 10.10C below, in  the case of a sublease of at least one (1) full floor of the 7-21 Condominium (other than a sublease effected pursuant  to  Section  10.02  above),  upon  Tenant’s  request,  Landlord  shall  enter  into  a  subordination,  recognition  and  attornment agreement with the subtenant (which agreement shall be in the form attached hereto as Exhibit “K”, as  modified  by  the provisions  of  clause  (ii)  below) (such  agreement,  a  “Subtenant  SNDA”) if:   (a)  the  proposed  sublease shall be for at least one (1) full floor of the 7-21 Condominium until the end of the Lease Term, but in no  event for fewer than five (5) years (inclusive of any renewal options of such subtenant that are conditioned upon  Tenant's  exercise  of  Tenant's  renewal  rights  under  this  Lease),  with  no  right  of  cancellation  (other  than  those  customarily provided in the event of casualty or condemnation or any express right of a sublandlord to terminate the  sublease due to a failure of a subtenant to have performed specific obligations under the applicable sublease) prior to  the expiration of such minimum term (but in no event extending beyond the Expiration Date of this Lease, as that  date may have been theretofore, or may thereafter be, extended in accordance with the terms of this Lease), (b) the  subtenant shall agree (in such subordination, recognition and attornment) that the rental to be paid by the subtenant  to  Landlord  (if,  as  and  when  such  subordination,  recognition  and  attornment  agreement  shall  become  operative  between Landlord and the subtenant following a termination of this Lease) shall be equal to the greater of (I) the  Fixed  Rent  and  Recurring  Additional  Rent  payable  under  this  Lease, and (II)  the  total  rentals  payable  under  the  sublease; (c) the proposed sublease does not give the subtenant any right to extend the sublease term beyond the  Expiration Date of this Lease, as that date may have been theretofore, or may thereafter be, extended in accordance  with the terms of this Lease, (d) the proposed sublease imposes no obligations on Landlord to do any work (other  than is otherwise required to be done by Landlord pursuant to the express terms of this Lease) or provide any work  allowance  to  the  subtenant  (which  would  be  binding  on  the  Landlord),  and  (e)  the  proposed  sublease  gives  no  greater  rights  to  the  subtenant  than  Tenant  has  under  this  Lease,  nor  imposes  any  greater  obligations  on  the  sublandlord that would be binding on Landlord than Landlord has under this Lease.                         (ii)    Landlord  shall  make  such  modifications  to  Exhibit  "H-1"  as  a  prospective  subtenant  may  reasonably  request,  provided  that  such  modifications  do  not  decrease  any rights  or  benefits,  or  increase any obligations, of Landlord, other than to a de minimis extent.                           (iii)   Notwithstanding  the  provisions  of  Subsection  10.06B(i)  above,  Landlord  shall  not be required to deliver a recognition agreement with respect to any other sub-subtenants or any other remote or  immediate undertenants.                  C.     If Landlord shall consent to a proposed subletting or sub-subletting of all or any portion  of the Demised Premises, then either the sublease agreement or the written instrument of consent, which shall also  be executed and acknowledged by Tenant and the subtenant, shall contain a provision substantially similar to the  following (with the terms “Sub-Sublandlord” and “Sub-Subtenant” inserted mutatis mutandis):          “The sublandlord [i.e., Tenant under this Lease] and the subtenant hereby agree that, if the subtenant shall  be in default of any obligation of the subtenant under the sublease, which default also constitutes a default by the  sublandlord  under  the  overlease  [i.e.,  this  Lease] (after  notice  shall have been  delivered  to  sublandlord  and  the  expiration of any applicable cure period), then the overlandlord [i.e., Landlord under this Lease] shall be permitted  to avail itself of all of the rights and remedies available to the sublandlord in connection therewith.  Without limiting  the generality of the foregoing, if a default by subtenant under the sublease, which default also constitutes a default  by  sublandlord  under  the overlease,  shall  continue  (after  notice  shall  have  been  delivered  to  sublandlord  and the                                                  -52-    NY 78267766v2 

 

expiration of any applicable cure period), the overlandlord shall be permitted (by assignment of a cause of action or  otherwise)  to  institute  an  action  or  proceeding  against  the  subtenant  in  order  to  enforce  the  sublandlord’s  rights  under the sublease, and shall also be permitted to take all ancillary actions (e.g., serve default notices and demands)  in  the  name  of  the  sublandlord  as  the  overlandlord  shall  reasonably  determine  to  be reasonably necessary.   The  sublandlord  agrees  to  cooperate  with  the  overlandlord,  and  to  execute  such  documents  as  shall  be  reasonably  necessary, in connection with the implementation of the foregoing rights of the overlandlord.  The sublandlord and  the subtenant expressly acknowledge and agree that the exercise by the overlandlord of any of the foregoing rights  and remedies:  (i) shall not constitute an election of remedies, (ii) shall not in any way impair the overlandlord’s  entitlement  to  pursue  other  rights  and  remedies  directly  against  the  sublandlord,  and  (iii)  shall  not  establish  any  privity  of  relationship  between  the  overlandlord  and  the  subtenant,  or  in  any  way  create  a  landlord/tenant  relationship  between  the  overlandlord  and  the  subtenant.   In  addition,  the  sublandlord  and  the  subtenant  hereby  agree that, if the actions of the subtenant shall be in breach of the condominium declaration, by-laws and rules and  regulations then in effect with respect to the premises demised under the sublease, then the board of managers of the  condominium shall have the power to enforce against the subtenant the terms of such documents to the extent the  board  of  managers  of  the  condominium  would  be  entitled  to  enforce  the  terms  of  such  documents  against  the  overlandlord pursuant  to  the  terms  of  the  overlease  and  subject  to  the  terms  of the  Board  SNDA  and  the  Board  Consent.”           Section 10.07                    A.     If Landlord’s consent is required hereunder and Landlord shall consent to any assignment  of this Lease or to any sublease of all or any part of the Demised Premises, Tenant shall, in consideration therefor,  pay to Landlord, as additional rent hereunder, the following amounts (hereinafter being referred to as “Profit”):                         (i)     in  the  case  of  an  assignment,  fifty  (50%)  percent  of  the  amount  received  by  Tenant and by which (x) all amounts and other consideration due or payable to Tenant and/or Tenant’s designee for  or by reason of such assignment (including all amounts due or payable for the sale or rental of Tenant’s fixtures,  leasehold improvements, equipment, furniture, furnishings or other personal property, less, in the case of a sale, the  unamortized or undepreciated cost of such items, as reported on Tenant’s federal income tax returns), exceed (y) the  amount of the following: (a) any reasonable and customary out-of-pocket closing expenses, but only if and to the  extent  actually  incurred  and  paid  by  Tenant  to  unrelated  third  parties  in  connection  with  such  assignment;  (b)  brokerage  commissions  and marketing  costs,  (c)  the  cost of  Alterations  made by  Tenant  to  prepare  the  Demised  Premises for occupancy by the assignee (but not including any portion of the cost of Tenant’s Initial Improvements),  (d) allowances that Tenant makes available to the assignee to fund the cost of alterations that the assignee makes to  the Demised Premises, and (e) without duplication, the then Unamortized Alterations Costs;                         (ii)    in the case of a sublease, fifty (50%) percent of the amount received by Tenant  and  by  which  (x)  the  sum of  (1) all  rents,  additional rents  and  other  consideration payable  under  the  sublease  to  Tenant by the subtenant, and (2) all other amounts and consideration payable to Tenant or Tenant’s designee for or  by  reason  of  such  subletting  (including  all  amounts  due  or  payable  for  the  sale  or  rental  of  Tenant’s  fixtures,  leasehold improvements, equipment, furniture or other personal property (less, in the case of a sale, the unamortized  or undepreciated cost of such items, as reported on Tenant’s federal income tax returns), exceed (y) the sum of (1)  that  part  of  the  Fixed  Rent  and  additional  rent  hereunder  allocable to  the  subleased  space  and  accruing  for  the  corresponding period during the term of the sublease, and (2) the amount of the following reasonable and customary  out-of-pocket expenses, but only if and to the extent actually incurred and paid by Tenant to unrelated third parties  in connection with such sublease:  (a) brokerage commissions and marketing costs, (b) the cost of Alterations made  by Tenant to prepare the subleased premises for occupancy by the subtenant (but not including any portion of the  cost of Tenant’s Initial Improvements), (c) allowances that Tenant makes available to subtenant to fund the cost of  alterations  that  subtenant  makes  to  the  Demised  Premises  (or  the  applicable  portion  thereof),  and  (d) without  duplication, the then Unamortized Alterations Costs.                  B.     Any amount(s) payable by Tenant pursuant to the provisions of this Section 10.07 shall  be paid by Tenant to Landlord as and when amounts on account thereof are paid by or on behalf of any assignee(s)  and/or any sublessee(s) to Tenant or Tenant’s designee and Tenant agrees to promptly advise Landlord thereof and  furnish such information with regard thereto as Landlord may reasonably request from time to time.                                                  -53-    NY 78267766v2 

 

               C.     Tenant shall furnish to Landlord, in the January calendar month immediately following  each calendar year during any part of which any such sublease shall be in effect, a reasonably detailed financial  statement certified as being correct by an executive financial officer (or, if Tenant is not a corporation, a principal)  of  Tenant,  setting forth  all  sums  accruing  during  the  prior  calendar  year  and/or  realized  by  Tenant  from  such  sublease,  and  a  computation  of  the  Profit  accruing  and/or  realized  by  Tenant  during  such  prior  calendar  year.   Tenant  shall  remit  to  Landlord  together  with  such  statement  any  Profit  or  portion  thereof  on  account  of  such  calendar year not previously remitted to Landlord.          Section 10.08                    A.     No assignment, sublease or transfer shall be effective or binding on Landlord unless and  until such assignee, subtenant or transferee of Tenant shall deliver to Landlord and (if required by the Condominium  Documents,  but  subject  to  the  Board  SNDA  and  Board  Consent)  the  Board a  fully  executed  and  acknowledged  duplicate original of the instrument of assignment, sublease or transfer which contains a covenant of assumption (if  not  a  sublease)  by  an  assignee  or  transferee  of  all  of  the  obligations  aforesaid,  and  a  confirmation  (including  a  sublease) of the covenant under Section 10.01 against future assignments and sublets.  In the event of any purported  assignment, sublease or transfer in contravention of the provisions of this Lease, Landlord may elect to treat such  purported assignee, subtenant or transferee as having assumed this Lease jointly and severally with Tenant, without  in any way or to any extent binding Landlord to consent to such purported assignment, sublease or transfer.                  B.     In no event shall any assignee, subtenant or other occupant of the Demised Premises use  the Demised Premises for any purpose other than the Authorized Use, unless otherwise expressly consented to by  Landlord (at Landlord’s sole and absolute discretion) as part of Landlord’s consent to such assignment, sublease or  transfer.          Section 10.09  The  consent  by  Landlord  to  an  assignment  or  subletting  shall  not  relieve  Tenant,  the  assignee or any subtenant from obtaining the express consent of Landlord (which consent, unless expressly provided  to  the  contrary  in  this  Article  10,  may be granted,  withheld  or  conditioned  in  Landlord’s  and  (if required  by  the  Condominium Documents, but subject to the Board SNDA and the Board Consent) the Board’s absolute discretion)  to any other or further assignment or subletting (excluding any assignment or subletting made pursuant to Section  10.02 above).          Section 10.10                    A.     If this Lease shall be assigned (whether or not in violation of the provisions of this Article  10),  Landlord  may  collect  from  the  assignee,  and  Tenant  hereby  authorizes  and  directs  the  assignee  to  pay  to  Landlord,  all  rent  (whether  denominated  as  Fixed  Rent  or  otherwise),  additional  rent  and  other  charges  payable  pursuant to the instrument of assignment, with the net amount so collected by Landlord to be applied to the Fixed  Rent,  additional  rent  and  other  charges herein provided, but  no  such  assignment  or  collection  shall  be  deemed  a  waiver  of  the  covenant  by  Tenant  under  Section  10.01  above,  nor  shall  the  same  be  deemed  the  acceptance  by  Landlord  of  the  assignee  as  a  tenant,  or  a  release  of  Tenant  from  the  further  performance  of  the  covenants  and  agreements  on  the  part  of  Tenant  to  be  performed  as  herein  contained,  except  as  otherwise  expressly  provided  herein.  Each and every instrument of assignment shall contain the substance of the foregoing provision.                   B.     Subject  to  the  terms  of  any applicable Subtenant  SNDA, if  all  or  any  portion  of  the  Demised  Premises  shall  be sublet  or  occupied  by  anyone  other  than  Tenant  (whether  or  not  in  violation  of  the  provisions of  this  Article 10),  then,  upon  demand  made  by  Landlord  at  any  time  following  the occurrence of  an  Event of Default, Landlord may collect from the subtenant or occupant, and Tenant hereby authorizes and directs  such party to pay to Landlord, all rent (whether denominated as Fixed Rent or otherwise), additional rent and other  charges  payable  pursuant  to  such  instrument,  with  the  net  amount  so  collected  by  Landlord to  be applied  to  the  Fixed Rent, additional rent and other charges herein provided, but no such subletting, occupancy or collection shall  be  deemed  a  waiver  of  the  covenant  by  Tenant  under  Section  10.01  above,  nor  shall  the  same  be  deemed  the  acceptance by Landlord of the subtenant or occupant as a tenant, or a release of Tenant from the further performance  of the covenants and agreements on the part of Tenant to be performed as herein contained.                                                     -54-    NY 78267766v2 

 

               C.     Subject to the terms of any applicable Subtenant SNDA,  in the event of a termination re- entry or dispossess by Landlord under this Lease, then Landlord shall have the right (but not the obligation) to take  over any and all subleases or sublettings of the Demised Premises or any part or parts thereof made or granted by  Tenant  and  to  succeed  to  all  of  the  rights  and  privileges  of  said  subleases  and  sublettings  or  such  of  them  as  Landlord may elect to take over and assume, and Tenant hereby expressly assigns and transfers to Landlord such of  the subleases and sublettings as Landlord may elect to take over and assume at the time of such termination, re-entry  or  dispossession,  and  Tenant shall  upon  request of  Landlord  execute,  acknowledge  and  deliver  to  Landlord  such  further assignments and transfers as may be reasonably necessary to vest in Landlord the right, title and interest of  Tenant, as sublandlord, in and to the then existing subleases and sublettings.  By its entry into a sublease, each and  every subtenant shall be deemed to have thereby agreed that, upon said termination, re-entry or dispossession, and if  Landlord  shall  so  elect,  Landlord  may,  in  Landlord’s  sole  and  absolute  discretion,  take  over  the  right,  title  and  interest of Tenant, as sublandlord, under such sublease, in which case such subtenant shall: (i) be deemed to have  waived any right to surrender possession of the subleased space or to terminate the sublease except in accordance  with any termination rights expressly set forth in the sublease, (ii) be bound to Landlord for the balance of the term  of such sublease, and (iii) attorn to Landlord, as its landlord, under all of the then executory terms, covenants and  conditions of the sublease, except that (x) rent and additional rent shall be at the rates provided in the sublease, and  (y)  such  subtenant  shall  be deemed  to  have  expressly  agreed  that  Landlord  shall  not (1)  have  any  obligation  to  perform  any  obligations  of  Tenant,  as  sublandlord  under  such  sublease, that exceed the  obligations  of  Landlord  expressly set forth in this Lease, (2) be liable for any previous act or omission of Tenant, as sublandlord under such  sublease (except for obligations of a continuing nature as of the date of attornment relating to maintenance, repair or  restoration  required  to  be  performed  by  Landlord  pursuant  to  the  provisions  of this  Lease  as  well  as  by  the  sublandlord under the sublease), (3) be subject to any counterclaim, offset or defense, not expressly provided in such  sublease, which theretofore accrued to such subtenant against Tenant, or (4) be bound by any previous modification  of  such  sublease not  approved  by  Landlord, or  by  any  previous  prepayment  of  more  than  one  (1)  monthly  installment of rent.  The provisions of this Subsection 10.10C shall be self-operative, and no further instrument shall  be required to give effect thereto.  However, within ten (10) days after Landlord shall have notified any subtenant of  said election, such subtenant shall execute, acknowledge and deliver to Landlord such instruments as Landlord may  reasonably request to evidence and confirm such attornment and the terms thereof.  Each and every sublease shall  contain the substance of this Subsection 10.10C.           Section 10.11  Without limiting the generality of the covenant set forth in Section 10.01 above, Tenant  covenants and agrees that, if Landlord shall be able to offer comparably sized space for at least a comparable term:   (i) Tenant shall not assign Tenant’s interest under this Lease or sublet the Demised Premises (or any portion thereof)  to any tenant or occupant in the Landlord Owned Space, and (ii) Tenant shall not accept any assignment of any lease  or sublease from, or become a subtenant of, any tenant or occupant in the Landlord Owned Space.          Section 10.12  Except  with  respect  to  assignments  or  sublettings  that  are  expressly  permitted  “as  of  right”  (i.e.,  without  the  need for  any  consent  by  Landlord)  under  the  provisions  of  this  Article  10, Tenant  shall  reimburse Landlord, as additional rent, for all reasonable out-of-pocket costs (including all reasonable out-of-pocket  legal  fees  and  disbursements,  as  well  as  the  costs  of making  investigations  as  to  the  acceptability  of  a  proposed  assignee or subtenant) that may be incurred by Landlord and/or the Board in connection with a request by Tenant  that  Landlord  consent  to  any  proposed  assignment  or  sublease, within  thirty  (30)  days  following  Landlord’s  rendition  of  a  statement  therefor  to  Tenant,  which  statement  shall  be  accompanied  by  reasonable  evidence  documenting such amount due.          Section 10.13  If Landlord shall validly decline to consent to any proposed assignment or sublease, or if  Landlord  shall  validly  exercise  the  Recapture  Option  under  Section 10.03  above  in  connection  therewith,  Tenant  shall indemnify, defend and hold Landlord harmless from and against any and all loss, liability, damages, cost and  expense (including reasonable attorneys’ fees disbursements), resulting from any claims that may be made against  Landlord by  any  brokers  or  other  persons engaged  by  Tenant  or  any  prospective  assignee  or  subtenant  (and  excluding any brokers or other persons claiming through Landlord) claiming a commission or similar compensation  in connection with the proposed assignment or sublease.          Section 10.14  If Tenant shall assign or attempt to assign Tenant’s interest in, to or under this Lease, or  if Tenant shall sublet or attempt to sublet the Demised Premises or any portion thereof  in violation of any of the  provisions contained in this Article 10 or elsewhere in this Lease, the same shall constitute a default by Tenant under                                                  -55-    NY 78267766v2 

 

this Lease. If such default shall continue, for any reason whatsoever, for ten (10) Business Days after notice of such  default shall have been given to Tenant by Landlord, the same shall constitute an Event of Default, and Landlord  shall have the right to terminate this Lease at any time thereafter in accordance with the provisions of Article 15  below.  The  acceptance  by  Landlord  of  any  Fixed  Rent  or  additional  rent  paid,  or  of  the  performance  of  any  obligation to be performed by Tenant, by a purported assignee or subtenant shall not be deemed (i) a consent by  Landlord to the assignment or sublet to such purported assignee or subtenant, (ii) a release by Landlord of Tenant’s  performance of, or compliance with, any of the obligations to be performed, or covenants or terms to be complied  with,  by  Tenant  pursuant  to  this  Lease,  or  (iii)  a  waiver  of Landlord’s  right  of  termination  as  set  forth  in  the  immediately preceding sentence.          Section 10.15  The listing of any name other than that of Tenant, whether on the doors of the Demised  Premises, on any Building directory, elevators or otherwise, shall not operate to vest any right or interest in this  Lease  or  the  Demised  Premises,  nor  shall  it  be  deemed  to  be  the  consent  of  Landlord or (if  required  by  the  Condominium Documents, but subject to the Board SNDA and the Board Consent) the Board to any assignment or  transfer of this Lease or to any sublease of the Demised Premises or to the use or occupancy thereof by third parties.   Tenant shall have the right, subject to first obtaining Landlord’s prior approval thereto (which approval shall not be  unreasonably withheld, conditioned or delayed), to install an identification sign (that merely contains the permitted  occupant’s name and/or logo) on the entrance of the Demised Premises.            Section 10.16  Landlord  and  Tenant  agree  that,  in  the  event  of  a  dispute  as  to  the  timeliness  or  reasonableness of the grant or denial of a consent under this Article 10, the provisions of Subsection 11.05B below  shall apply.          Section 10.17  Notwithstanding  anything  in  this  Article  10  to  the  contrary,  Tenant  may  assign,  hypothecate, encumber, mortgage or create a security interest in or upon Tenant’s Movable Property in the Demised  Premises without the consent of Landlord, and may remove Tenant’s Movable Property at any time during the term  of  the  Lease  (subject  to  the  applicable  provisions  of  this  Lease,  and  without  granting  any access  rights  to  third  parties), without the same being deemed an “assignment” or other transfer for purposes of this Lease.                                               ARTICLE 11.                                                                         NON-LIABILITY; INDEMNIFICATION; ARBITRATION          Section 11.01  Except as otherwise expressly provided to the contrary elsewhere in this Lease, neither  Landlord nor Landlord’s agents shall be liable for:  (i) any damage to property of Tenant or of others entrusted to  employees  of  Landlord  or  to  Landlord’s  agents,  nor  for  the  loss  of  or  damage  to  any  property  of  Tenant  or  of  Persons Within Tenant’s Control by theft or otherwise; (ii) any injury or damage to persons or property resulting  from fire, explosion, falling plaster, steam, gas, electricity, water, rain, snow or leaks from any part of the Building  or from the pipes, appliances or plumbing works or from the roof, street or sub-surface or from any other place or by  dampness or by any other cause of whatsoever nature, unless such injury or damage is caused by the negligent act or  willful misconduct of Landlord, and is not otherwise subject to the provisions of Section 8.04 above; (iii) any such  damage caused by other tenants or persons in the Building or caused by operations in construction of any private,  public  or  quasi-public  work;  or  (iv)  any  latent  defect  in  the  Demised  Premises  or  in  the  Building, subject  to  Landlord’s obligations with respect to Latent Defects as expressly set forth in Subsection 2.02A hereof.  Nothing  contained  in  this  Section  11.01  shall  be  construed  to  relieve  Landlord  from  performing  those  Repairs  which  are  expressly  made the  obligation  of  Landlord  elsewhere  in  this  Lease.  Moreover,  but  subject to  the  provisions  of  Section 8.04 above, nothing contained in this Section 11.01 shall be construed to relieve Landlord of any liability  that Landlord may have to Tenant under law for any loss or damage suffered by Tenant if and to the extent caused  by  a  breach  by  Landlord  of  Landlord’s  obligations  under  this  Lease  or  any willful  misconduct  or  negligence  of  Landlord or by Landlord’s agents or employees (it being agreed, however, that in no event shall Landlord  or its  agents  or  employees  have  any  liability  to  Tenant,  or  to  any  person  claiming  by,  through  or  under  Tenant,  for  consequential, punitive or special damages).            Section 11.02  If at any time any windows of the Demised Premises shall be temporarily or permanently  closed, darkened or covered for any reason if mandated by any Legal Requirements, or resulting from such window  being a lot-line window and not resulting from any acts of Landlord or Landlord’s agents, Landlord shall not be                                                  -56-    NY 78267766v2 

 

liable for any damage Tenant may sustain thereby, and Tenant shall not be entitled to any compensation therefor nor  abatement of rent, nor shall the same release Tenant from Tenant’s obligations hereunder or constitute an eviction.   Landlord shall  not  temporarily or  permanently  close  or  darken  or  cover  any  windows  of  the  Demised  Premises,  except if and to the extent that the same shall be necessary in order to comply with a Legal Requirement.  This  Section 11.02 does not prohibit the Board or Unit owners so authorized by the Board from erecting construction  hoists  from  time  to  time  and  connecting  guy  wires  or  braces  to  the  Common  Elements  at  the  perimeter  of  the  Demised  Premises,  and  Tenant  shall  have  no  claim  for  compensation  or  abatement  of  rent  on  account  of the  presence of such a hoist or connection.  Landlord agrees to use commercially reasonable efforts (but shall not be  obligated to use overtime or premium pay labor) to minimize interference with Tenant’s use and occupancy of the  Demised Premises in connection with any of the activities described in this section.          Section 11.03                    A.     Subject to the provisions of Section 8.04 above and Section 11.06 below, Tenant agrees  (except if and to the extent that the same shall be caused by the negligence or willful misconduct of any Indemnified  Party, but irrespective of whether Tenant shall have been negligent in connection therewith), to indemnify, protect,  defend and save harmless, Landlord and Landlord’s partners, members, officers, directors, shareholders, contractors,  principals, agents and employees (individually and collectively, the “Indemnified Party”) from and against any and  all  liability  (statutory  or  otherwise),  claims,  suits,  demands,  damages  (but  subject  to  the  exclusions set  forth  in  Section  11.06  below),  judgments,  costs,  fines,  penalties,  interest  and  expenses  (including  reasonable  counsel  and  other professional fees and disbursements incurred in any action or proceeding, whether between Tenant and the  Indemnified  Party,  or  between  the  Indemnified  Party  and  any  third  party  or  otherwise),  to  which  any  such  Indemnified Party may be subject or suffer arising from, or in connection with:  (i) any injury to, or death of, any  person or persons, or damage to property (including any loss of use thereof), occurring in or about the Demised  Premises, or (ii) the use and occupancy of the Demised Premises, or from any work, installation, act or omission  (where there is a duty under this Lease or under applicable Legal Requirements to act) (other than by Landlord or by  Landlord’s agents or employees) in or about the Demised Premises during the Lease Term, or (iii) any negligence or  willful misconduct of Tenant or of any Persons Within Tenant’s Control.  If any action or proceeding is brought  against any Indemnified Party by reason of any such claim, Tenant, upon notice from such Indemnified Party shall,  at Tenant’s sole cost and expense, resist and defend such action or proceeding by counsel reasonably satisfactory to  such Indemnified Party, and counsel selected by Tenant’s insurance company to resist and defend such action or  proceeding is, absent a conflict, hereby deemed to be satisfactory to such Indemnified Party.                  B.                                      (i)     Subject  to  the  provisions  of  Section  8.04  above  and  Section  11.06  below,  Landlord agrees to  indemnify  and  hold  Tenant  and  Tenant’s  partners,  members,  directors,  officers,  shareholders,  principals,  agents  and  employees  (each,  a  “Tenant  Indemnified  Party”  harmless  from  and  against  all  liability  (statutory or otherwise), claims, suits, demands, damages (but subject to the exclusions set forth in Section 11.06  below),  judgments,  costs,  interest  and  expenses  (including  reasonable  counsel  and  other  professional  fees  and  disbursements incurred in any action or proceeding, whether between Landlord and the Tenant Indemnified Party, or  between the Tenant Indemnified Party and any third party or otherwise), in connection with (a) any injury to, or  death of, any person or persons, or damage to property occurring in or about areas of the Building outside of the  Demised  Premises (other  than those  areas  within  the  exclusive  control of Tenant  or  of  Persons  Within  Tenant's  Control), or (b) the negligence or willful misconduct of Landlord or any Persons Within Landlord’s Control.  If any  action or proceeding is brought against any Tenant Indemnified Party by reason of any such claim, Landlord, upon  notice from such Tenant Indemnified Party shall, at Landlord’s sole cost and expense, resist and defend such action  or proceeding  by  counsel  reasonably  satisfactory  to  such  Tenant  Indemnified  Party,  and  counsel  selected  by  Landlord’s insurance company to resist and defend such action or proceeding is, absent a conflict, hereby deemed to  be satisfactory to such Tenant Indemnified Party.                          (ii)    Notwithstanding  anything  to  the  contrary  contained  in  Subdivision  11.03B(i)  above, Landlord's liability pursuant to the provisions of clause (a) of said Subdivision 11.03B(i), and which arise  from the action or inaction of the Board, shall be limited to such amounts as Landlord shall, using diligent good faith  efforts, actually recover from the Board in connection therewith.                                                    -57-    NY 78267766v2 

 

       Section 11.04                    A.     Tenant shall reimburse and compensate Landlord, subject to the terms of Section 31.19,  as additional rent within thirty (30) days after rendition of a statement, for all expenditures, costs, fees, expenses,  judgments, penalties, damages and fines actually sustained or incurred by Landlord (including reasonable counsel  and other professional fees and disbursements incurred in connection with any action or proceeding) in connection  with  any  matter  set  forth  in  this  Article  11,  or  non-performance  or  non-compliance  with  or  breach  or  failure  by  Tenant to observe any term, covenant, agreement, provision or condition of this Lease, or breach of any warranty or  representation by Tenant made in this Lease in which Landlord shall be the prevailing party.  References in this  Article 11 to Landlord shall for all purposes be deemed to include the Board and (if applicable) any Overlandlord  and each Mortgagee.                  B.     Landlord shall reimburse and compensate Tenant, subject to the terms of Section 31.19,  within thirty (30) days after rendition of a statement, for all expenditures, costs, fees, expenses, judgments, penalties,  damages and fines actually sustained or incurred by Tenant (including reasonable counsel and other professional  fees and disbursements incurred in connection with any action or proceeding) in connection with any matter set forth  in this Article 11, or non-performance or non-compliance with or breach or failure by Landlord to observe any term,  covenant, agreement, provision or condition of this Lease, or breach of any warranty or representation by Landlord  made in this Lease in which Tenant shall be the prevailing party.          Section 11.05                    A.     Except as otherwise provided in Subsection 11.05B below, Tenant agrees that Tenant’s  sole and exclusive remedy in any instances where Tenant disputes Landlord’s reasonableness in exercising judgment  or withholding, conditioning or delaying consent or approval pursuant to a specific provision of this Lease shall be  those remedies in the nature of an injunction, declaratory judgment or specific performance, the rights to monetary  damages  or  other  remedies  being  hereby  specifically  and  irrevocably  waived  by  Tenant.  Without  limiting  the  generality of the foregoing, and unless expressly provided to the contrary in this Lease, Tenant agrees that, in any  situation in which Landlord’s consent or approval is required pursuant to this Lease, the same may be granted or  withheld in Landlord’s absolute discretion, and/or be made subject to such conditions as Landlord, in Landlord’s  absolute discretion, may deem appropriate.                  B.   Tenant  and  Landlord  shall  each  have  the  right  to  submit  (x)  a  dispute  relating  to  the  reasonableness of (1) the denial of a consent required under Articles 5 and 10 above, (2)  Landlord’s determination  of whether  additional  or a different  type  of  insurance  is  required  pursuant  to  Subsection  8.03A above,  and (3)  Landlord’s consent to Tenant’s signage expressly permitted under Section 31.04, but solely with respect to Signs  within  the  interior  of  the  7-21  Condominium (it  being  agreed  that  this  Subsection  11.05B  shall  not  apply  to  any  other permitted signs), and (y) any other dispute for which arbitration in accordance with this Subsection 11.05B is  expressly provided in this Lease, to binding arbitration (“Expedited Arbitration”) under the Expedited Procedures  provisions (Rules E-1 through E-10 in the current edition) of the Commercial Arbitration Rules of the American  Arbitration  Association,  or  its  successor (“AAA”) (provided,  however,  that  in  the  absence,  failure,  refusal  or  inability of the AAA to act in accordance with the Expedited Arbitration procedures set forth above, either party  shall have the right to submit said dispute to binding arbitration conducted on the basis of expedited proceedings,  administered by JAMS in accordance with the JAMS Optional Expedited Arbitration Procedures (pursuant to Rules  16.1(a)  and  16.2  of  the  JAMS  Comprehensive  Arbitration  Rules  &  Procedures)).  Any  dispute  permitted  to  be  arbitrated pursuant to this Subsection 11.05B shall be submitted to arbitration no later than forty-five (45) days after  the parties have been unable to resolve such dispute. The party desiring such arbitration (the “Delivering Party”)  shall deliver notice (an “Arbitration Notice”) to the other party, which Arbitration Notice shall identify the provision  of this Lease at issue and shall set forth, in reasonable detail to the extent practicable, (i) the nature of the dispute,  (ii)  the  Delivering  Party’s  good  faith  determination  of  each  disputed  item(s)  (which  may  differ from any  prior  determination thereby), and (iii) an explanation of its position with respect to each disputed item(s), together with  any materials that it deems relevant for such purposes.  In cases where the parties utilize such arbitration:  (i) the  parties will have no right to object if the arbitrator so appointed was on the list submitted by the AAA and was not  objected  to  in  accordance  with  Rule  E-5, or  a  comparable  rule  with  respect  to  JAMS,  if  applicable, (ii)  the first  hearing shall be held within seven (7) Business Days after the appointment of the arbitrator, (iii) if the arbitrator  shall find that Landlord or Tenant (as the case may be) had acted unreasonably in withholding a consent or approval,                                                  -58-    NY 78267766v2 

 

such consent or approval shall be deemed granted, and any other finding or determination of the arbitrator shall be  deemed final and binding (except that the arbitrator shall not have the power to add to, modify or change any of the  provisions of this Lease), and (iv) the losing party in such arbitration shall pay the arbitration costs charged by AAA  or  JAMS,  as  applicable, and/or  the  arbitrator.   The  arbitrator  shall  determine  the  extent  to  which  each  party  is  successful in such Expedited Arbitration proceeding in addition to rendering a decision on the dispute submitted.  If  the arbitrator shall determine that one (1) party is entirely unsuccessful, then such party shall pay all of the fees of  such  arbitrator.   If  the  arbitrator  determines  that  both  parties  are  partially  successful,  then  each  party  shall be  responsible for such arbitrator's fees only to the extent such party is unsuccessful (e.g., if Landlord is eighty percent  (80%)  successful  and  Tenant  is  twenty  percent  (20%)  successful,  then  Landlord  shall  be  responsible  for  twenty  percent (20%) of such arbitrator's fees and Tenant shall be responsible for eighty percent (80%) of such arbitrator's  fees). Notwithstanding anything herein to the contrary, all arbitrators appointed pursuant to this Subsection 11.05B  shall have at least fifteen (15) years of continuous experience in the field to which the dispute relates, and (x) shall  have been actively engaged in such field in Manhattan for a period of at least fifteen (15) years before the date of  his/her appointment hereunder, (y) be sworn to fairly and impartially perform their duties as arbitrator, (z) not be a  current  employee, or  have  been  in  the  past  three  (3)  years, an  employee  of  Landlord  or  Tenant  or  of  any  other  person, partnership, corporation or other form of business or legal association or entity that controls, is controlled by  or is under common control with Landlord or Tenant, and (aa) shall be a person who neither Landlord nor Tenant,  nor  any  of  their  respective  affiliates,  has  engaged  either  individually  or  as  part  of  a  brokerage  team  (in  contradistinction to the  brokerage organization as a whole), during the immediately preceding period of three (3)  years.          Section 11.06  In  no  event  shall  either  Landlord  or  Tenant  be  liable  under  this  Lease  for  any  consequential,  punitive  or  special  damages,  including  loss  of profits  or  business  opportunity,  arising  under  or  in  connection with this Lease, except for any such damages for which Tenant may be liable pursuant to Subsection  25.02B below.                                             ARTICLE 12.                                                                                           CONDEMNATION          Section 12.01  If the whole or substantially all of the Demised Premises shall be lawfully condemned or  taken  in  any  manner  for  any  public  or  quasi-public  use,  this  Lease  and  the  term  and  estate  hereby  granted  shall  forthwith cease and terminate as of the date of vesting of title.  If only a part of the Demised Premises shall be so  condemned or taken, then this Lease shall remain in full force and effect as to such part of the Demised Premises not  so taken, but, effective as of the date of vesting of title, the Fixed Rent and Recurring Additional Rent hereunder  shall be abated in an amount apportioned according to the area of the Demised Premises so condemned or taken;  provided, however, that if (x) thirty-five percent (35%) or more of any of the 14th Floor Unit, the 15th Floor Unit, or  the 16th Floor Unit (or any other full floor that then constitutes the Demised Premises), or (y) thirty-five percent  (35%)  or  more of the  Demised  Premises  shall  be  so  condemned  or  taken,  and  Tenant,  in  Tenant’s  reasonable  judgment,  shall  determine  that,  by  reason  thereof,  Tenant’s  regular  business  can  no longer  be  conducted  at  the  remaining  portion  of  the  14th Floor  Unit,  15th Floor  Unit  or  16th Floor  Unit (or  any  other  full  floor  that  then  constitutes the Demised Premises) or the Demised Premises, then Tenant may, at its option, terminate this Lease and  the  term  and  estate  hereby  granted,  but  only  by  notifying  Landlord  of  such  termination  within  sixty  (60)  days  following the date on which Tenant shall have received notice of vesting of title, and this Lease and the term and  estate hereby granted with shall expire as of the earlier of:  (i) the date of vesting of title, and (ii) the date on which  Tenant shall vacate and surrender the Demised Premises, with the same effect as if that were the Expiration Date,  and the Fixed Rent and Recurring Additional Rent hereunder shall be apportioned as of such date.   If only a part of  the 7-21 Condominium shall be so condemned or taken such that substantial alteration or reconstruction of the 7-21  Condominium shall, in Landlord’s reasonable opinion, be necessary or appropriate as a result of such condemnation  or  taking (whether  or  not  the  Demised  Premises  shall  be  affected),  then (i)  Landlord may,  at  Landlord’s  option,  terminate this Lease and the term and estate hereby granted as of the date of such vesting of title by notifying Tenant  of  such  termination  within  sixty  (60)  days  following  the  date  on  which  Landlord  shall  have  received  notice  of  vesting of title, provided that, if no portion of the Demised Premises shall have been condemned or taken, Landlord  shall terminate this Lease only if Landlord shall terminate all other leases for office space in the 7-21 Condominium  that is owned by Landlord (excluding space, if any, occupied by Landlord or any affiliate of Landlord), and (ii) if  such condemnation or taking shall (x) deprive Tenant of access to the Demised Premises and Landlord shall not                                                  -59-    NY 78267766v2 

 

have provided or undertaken steps to provide other means of access thereto or (y) occur during the last year of the  Lease Term (unless theretofore renewed by Tenant pursuant to the terms of this Lease) and more than fifteen percent  (15%) of the Demised Premises shall be so taken, Tenant may, at Tenant’s option, but only by delivery of notice to  Landlord within sixty (60) days following the date on which Tenant shall have received notice of vesting of title,  terminate this Lease and the term and estate hereby granted as of the date of vesting of title.  If neither Landlord nor  Tenant elects to terminate this Lease as aforesaid, this Lease shall be and remain unaffected by such condemnation  or  taking,  except  that  the  Fixed  Rent  and  Recurring  Additional  Rent  shall  be  abated  to  the  extent,  if  any,  hereinbefore provided in this Article 12.  If only a part of the Demised Premises shall be so condemned or taken and  this Lease and the term and estate hereby granted are not terminated as hereinbefore provided, Landlord shall, with  reasonable diligence and at Landlord’s expense, restore the remaining portion of the Demised Premises as nearly as  practicable to the same condition as existed prior to such condemnation or taking, provided that such restoration  shall  not  exceed  the  scope  of  the  work  done  in  originally  constructing  the  Building  (but  including  Landlord’s  Restoration Work) and that the cost thereof shall not exceed the net proceeds of the award received by Landlord for  the value of the portion of the Demised Premises so taken, and Tenant shall be entitled to receive no part of such  award, except as set forth in Section 12.03 below.          Section 12.02  In the event of any condemnation or taking hereinbefore mentioned of all or a part of the  Building  or  the  Demised  Premises,  Landlord  shall  be  entitled  to  receive  the  entire  award  in  the  condemnation  proceeding, including any award made for the value of the estate vested by this Lease in Tenant, and Tenant hereby  expressly assigns to Landlord any and all right, title and interest of Tenant now or hereafter arising in or to any such  award  or  any  part  thereof,  and  Tenant  shall  be  entitled  to  receive  no  part  of  such  award.   In  any  condemnation  proceeding, Tenant may submit a separate claim against the condemning authority for the value of Tenant’s trade  fixtures,  furniture,  machinery  and  equipment  contained  in the  Demised  Premises,  the  value  of  all  improvements,  alterations  and  additions  made  to  the  Demised  Premises  by Tenant  at  Tenant’s  expense,  the  cost  of  removal  or  relocation,  and  any  expenses  (including  reasonable  attorneys’  fees)  incurred  by  Tenant  as  a  result  of  any  such  proceeding, provided such separate claims do not reduce the award otherwise payable to Landlord.          Section 12.03  If all or any portion of the Demised Premises shall be taken by the exercise of the right of  eminent domain for occupancy for a limited period of time, this Lease shall continue in full force and effect and  Tenant shall continue to pay in full the Fixed Rent and additional rent, without reduction or abatement, and Tenant  shall be entitled to receive such portion of the award or payment made for such use and attributable to any period  within the Lease Term and for Tenant's personal property. Landlord shall be entitled to receive that portion of the  award  that  is  made  for  any  such  temporary  taking  of  the  Demised  Premises  attributable  to  the  period  after  the  expiration  of  the  Lease  Term  or  that  is  allocable  to  the  Building  and  the  Demised  Premises  other  than Tenant's  personal property.  If such taking results in changes or Alterations in the Demised Premises which would necessitate  an  expenditure  to  restore  the  Demised  Premises  to  its  former  condition,  then  Tenant,  at  the  termination  of  such  taking  shall,  at Tenant’s  expense,  restore  the  Demised  Premises  to  its  former  condition,  and  such  portion  of  the  award or payment, if any, as shall be necessary to cover the expenses of such restoration shall be applied to such  restoration, and the balance necessary, if any, shall be paid by Tenant.                                               ARTICLE 13.                                                                                       ACCESS; BUILDING NAME          Section 13.01                    A.     Landlord  reserves  for  itself  or  (to  the  extent  permitted  pursuant  to  the  Condominium  Documents, but subject to the Board SNDA and the Board Consent) for the Board, as the case may be, the right, at  any time and from time to time (without thereby creating an actual or constructive eviction or incurring any liability  to Tenant therefor but subject to Section 6.02) to (i) place such structures and to make such relocations, changes,  Alterations, additions, improvements, Repairs and replacements on the Land and in or to the Building or the 7-21  Condominium  (including  the  Demised  Premises  and  the  Amenity  Space) and  the  Building  Systems,  and  the  operation of the Building Systems, as well as in or to the street entrances, subway entrances, lobbies, halls, plazas,  washrooms, tunnels, elevators, stairways and other parts thereof, and (ii) erect, maintain and use pipes, ducts and  conduits  in  and  through  the  Demised  Premises, all  as  Landlord  may  in  Landlord’s  reasonable  discretion  deem  necessary or desirable (any of the foregoing, a “Landlord Change”).  Landlord shall have the right, subject to and in                                                  -60-    NY 78267766v2 

 

accordance with the provisions of Subsection 13.01B below, to delegate such right to another tenant or occupant of  the Building that reasonably requires access to the Demised Premises in order for such tenant or occupant to perform  Concealed Work; provided that, with respect to any Landlord Change or Concealed Work: (a) Landlord shall (x) use  (or, if Landlord delegates its right to another tenant or occupant of the Building as aforesaid, Landlord shall cause  such  tenant  or  occupant  to  use)  commercially  reasonable  efforts (but  shall  not  be  obligated  to  use  overtime  or  premium pay labor except as expressly set forth below) to minimize interference with Tenant’s use and occupancy  of  the  Demised  Premises  arising  from  the  making  of  such Landlord  Change  or  performance  of  such  Concealed  Work,  as  applicable, and clean  all  work  areas  at  the  end  of each  work  day,  if  necessary and  only  to  the  extent  reasonably practicable, and block-off such work areas, if necessary,  (y) not store (or if Landlord delegates its rights  to another tenant or occupant of the Building as aforesaid, Landlord shall cause such tenant or occupant to not store)  more than one (1) days’ worth of materials, tools and equipment in the Demised Premises, unless such materials,  tools and/or equipment are intended to be used imminently in connection with the making of such Landlord Change  or performance of such Concealed Work, as applicable, (b) any pipes, conduits or ducts installed in or through the  Demised Premises shall be concealed behind interior walls, floors or ceilings, if feasible, or shall be enclosed and  “boxed in” adjacent to such walls, floors or ceilings (and, if applicable, adequately furred), (c) when completed, the  installation of such pipes, ducts or conduits shall not reduce the useable areas, or the ceiling height, of the Demised  Premises  more  than  a  de minimis  amount (it  being  understood  that  in  no  event  shall  Landlord  construct  any  additional  columns  within  the  Demised  Premises  from  and  after  the  delivery  date  unless  there  are  no  other  reasonably  practical  alternatives),  (d) Landlord  shall  promptly  repair  (or,  if  such damage  was  caused  by  another  tenant or occupant of the Building as delegated as aforesaid, Landlord shall cause such tenant or occupant to repair)  all  damage  to  the  Demised  Premises,  the  Building  Systems  serving  the  Demised  Premises,  and  any  Tenant’s  Movable  Property  caused  by such  Landlord  Change or  such  Concealed  Work,  and  (e) all Landlord  Changes  and  Concealed  Work affecting  the  Demised  Premises  shall  be  subject  to  the  notice  requirements  set  forth  in  Section 13.03  below (collectively,  the  items  set  forth  in  clauses  (a)  through  (e)  above,  the “Landlord  Change  Terms”).  Subject to compliance with the foregoing requirements, Landlord shall also have the right to install solar  control window film on, or otherwise alter for energy savings purpose, any windows of the Demised Premises.  In  addition, and not in limitation to the Landlord Change Terms, any such Landlord Change or Concealed Work shall  not (to  the  extent  reasonably  practicable),  when completed,  adversely  affect  Tenant’s  access  to,  or  use  of, the  Demised Premises for the Authorized Use beyond a de minimis extent.  Notwithstanding the foregoing, Landlord  shall  use  overtime  or  premium  pay  labor  in  order  to  minimize  interference  with  Tenant’s  use  and  occupancy  of  and/or access to the Demised Premises whenever Landlord shall be performing (I) a “voluntary” Landlord Change  or (II) any Landlord Change that would reasonably be anticipated to interfere with the conduct of Tenant’s business  in, or access to, the Demised Premises to more than a de minimis extent for more than a de minimis time period  during  Business  Hours.  For  the  purposes  hereof,  the  term  “voluntary” Landlord  Change shall  mean a  Landlord  Change performed  by  Landlord  that is not requested by Tenant, not necessitated by Legal Requirements or by a  requirement of the Insurance Boards, not required pursuant to the obligations of Landlord under this Lease, and not  necessitated by Tenant’s specific use or manner of use of the Demised Premises for other than customary office  uses.  Nothing contained in this Section 13.01 shall be deemed to relieve Tenant of any duty, obligation or liability  of  Tenant  with  respect  to  making  any  repair,  replacement  or  improvement  required  pursuant  to  this  Lease  or  complying with any Legal Requirements as elsewhere in this Lease provided.                  B.     Landlord shall have the right to delegate to another tenant or occupant of the Building,  provided that such tenant or occupant reasonably requires access to the Demised Premises in order for such tenant or  occupant to perform work to such tenant’s or occupant’s premises, Landlord’s right pursuant to the provisions of  Subsection  13.01A(ii) above  to  enter  the  Demised  Premises  to  perform  any  permitted  alterations,  repairs,  improvements, replacements or restorations that may run under, through or within any floor slabs, shafts, electric  closets,  columns,  areas  above  suspended  ceilings  or  other  similar  areas  within  the  Demised  Premises  (any  such  work, the “Concealed Work”); provided, however, that Landlord shall cause such tenant or occupant (in addition to,  and  not  in  limitation  of, the  Landlord  Change  Terms) to  (i)  use  commercially  reasonable  efforts  to  minimize  interference  with  Tenant’s  use  and  occupancy  of  the  Demised Premises  arising  from  the  performance  of  any  Concealed Work, (ii) use overtime or premium pay labor if such work is of a type that would interfere with Tenant’s  use and occupancy of the Demised Premises to more than a de minimis extent, (iii) reimburse Tenant for Tenant’s  actual and reasonable costs, if any, to (x) hire security personnel to be in the Demised Premises at the same time as  such  other  tenant  or  occupant  or  their  contractors  or  subcontractors,  and  (y)  install  any  reasonable  protective  covering in the Demised Premises to protect the Demised Premises from such Concealed Work to be performed, and                                                  -61-    NY 78267766v2 

 

(iv)  cause  such  tenant  and  such  tenant’s  contractors  to  add  Tenant  as  an  additional  insured  with  respect  to  its  insurance policies prior to the performance of any such Concealed Work.                  C.     If  Tenant  shall  require  access  to  the  premises  of  another  tenant  or  occupant  of  the  Building to perform any Concealed Work, Tenant shall have the right to such access, provided that (i) Tenant uses  commercially reasonable efforts to minimize interference with any such other tenant’s or occupant’s business arising  from the performance of any Concealed Work, (ii) Tenant uses overtime or premium pay labor if such work is of a  type that would materially interfere with such tenant’s or occupant’s use and occupancy of the affected premises,  (iii) Tenant reimburses such  tenant  or  occupant  for  the  actual  and  reasonable  costs,  if  any,  incurred  to  (x)  hire  security  personnel  to  be  in  the  affected  premises  at  the  same  time  as  Tenant  or  Tenant’s  Contractors  or  subcontractors, and (y) install any reasonable protective covering in such  premises to protect the same from such  work to be performed, and (iv) Tenant and Tenant’s Contractors shall add such affected tenant or occupant as an  additional insured with respect to its insurance policies prior to the performance of any Concealed Work.          Section 13.02  Subject to the provisions of Section 13.01 and except as otherwise expressly set forth in  this Lease, neither this Lease nor any use by Tenant shall give Tenant any right or easement in or to the use of any  door  or  hallways,  or  any  passage  or  any  tunnel  or  any  concourse or  arcade or plaza  or  to  any  connection  of  the  Building with any subway, railroad or any other building or to any public conveniences, and the use of such doors,  halls, passages, tunnels, concourses, arcades, plazas, connections and conveniences may without notice to Tenant be  regulated or discontinued at any time and from time to time by Landlord or the Board without Landlord or the Board  incurring any liability to Tenant therefor and without affecting the obligations of Tenant under this Lease; provided,  however, that Landlord shall use commercially reasonable efforts to ensure that Tenant's use and occupancy of the  Demised Premises shall not be materially adversely affected thereby.          Section 13.03  Subject to the provisions of Section 13.01 above, Landlord, Overlandlord (if applicable),  the Board and any Mortgagee, and their representatives, may enter the Demised Premises upon reasonable advance  notice (except in an emergency, in which case entry may be made at any time) for the purpose of (a) inspection or of  making Repairs, Alterations, additions, restorations, replacements or improvements (in accordance with this Lease)  in  or  to  the  Demised  Premises or  the  Building  or  Building  Systems  (including  in  connection with any  Landlord  Changes), or (b) complying with Legal Requirements or the requirements of any Insurance Board, or (c) performing  any obligation imposed on Landlord by this Lease, or of exercising any right reserved to Landlord by this Lease,  provided that (i) the foregoing shall not be deemed to impose any obligation on Landlord or Overlandlord or the  Board or Mortgagee to make any Repairs or Alterations, (ii) Landlord shall give Tenant (x) one (1) Business Days’  prior notice with respect to any entry into the Demised Premises (except in the case of an emergency, in which case  no prior notice shall be required, but Landlord shall notify Tenant of such access as soon as reasonably practicable)  with respect to the performance of any unplanned work, and (y) three (3) Business Days’ prior notice with respect to  the performance of any planned work, and (iii) other than in the case of an emergency, Landlord shall not enter the  Demised Premises without having given Tenant a reasonable opportunity to be present and to accompany Landlord;  provided, however, that if Landlord is performing scheduled maintenance work for multiple tenants and Tenant has  been  given  notice  thereof,  Landlord  may  enter  the  Demised  Premises without  a  Tenant  representative  present.  Tenant  shall have  the  right, upon  reasonable  advance  notice  to Landlord,  from  time  to  time,  to  designate certain  areas not to exceed ten percent (10%) of the total Rentable Square Feet within the Demised Premises as “Secure  Areas” that contain Secure Items, which notice shall (I) inform Landlord whether or not Landlord should provide the  cleaning  services  set  forth  in  this  Lease  to  the  Secure  Areas,  and  (II)  identify  the categories  of the  items to  be  safeguarded therein (the “Secure Items”).  Except in the case of an emergency or if Tenant’s failure to cooperate  with Landlord in connection therewith shall interfere (other than to a de minimis extent) with Landlord’s ability to  operate, maintain or repair the Building (or any portion thereof) in a first-class manner, Landlord shall not enter any  Secure Area without being accompanied by a representative of Tenant, and Landlord agrees to use commercially  reasonable  efforts  to  safeguard  the  cash,  confidential  information  or  other  valuables  located  in  Secure  Areas  whenever Landlord does enter therein.          Section 13.04  Landlord may, at reasonable times and upon reasonable notice to Tenant (which notice  shall be at least one (1) Business Day in advance and shall state the approximate time of entry, which shall be on a  Business Day), show the Demised Premises to any prospective purchaser, ground lessee, mortgagee, or assignee of  the Building and/or the Land, or of Landlord’s interest therein, and their representatives.  During the eighteen (18)  month period preceding the Expiration Date, Landlord may similarly show the Demised Premises or any part thereof                                                  -62-    NY 78267766v2 

 

to any person contemplating the leasing of all or a portion of the same (provided that Tenant shall have the right to  designate  certain  reasonably  limited  areas  within  the  Demised  Premises  that  Landlord  may  not show.  Notwithstanding  the  foregoing  provisions  of  this  Section  13.04,  Landlord  shall  not  enter  the  Demised  Premises  without having  given  Tenant  a  reasonable  opportunity  to  be  present  and  to  accompany  Landlord,  provided  that  Tenant shall make such representative available at such requested times.          Section 13.05  Without  incurring  any  liability  to  Tenant,  Landlord  may  permit  access  to  the  Demised  Premises and open the same, whether or not Tenant shall be present, upon demand (and provided such party has a  warrant  or  court  order,  it  being  agreed  that  Landlord  shall  not  be  required  to  verify  or  investigate  the  truth  or  accuracy  of  such  warrant or  court  order) of  any  receiver,  trustee,  assignee  for  the  benefit  of  creditors,  sheriff,  marshal  or  court  officer  entitled  to  such  access  for  the  purpose  of  taking  possession  of,  or  removing,  Tenant’s  property  or  for  any  other  lawful  purpose  (but  by  this provision  any  action  by  Landlord  hereunder  shall  not  be  deemed a recognition by Landlord that the person or official permitted to such access has any right to such access or  interest in or to this Lease, or in or to the Demised Premises), or upon demand of any representative of the fire,  police, building, sanitation or other department of the city, state or federal governments.          Section 13.06  Landlord reserves for the Board or the Board’s designee the absolute right at any time,  and from time to time, to name and change the name of the Building and to change the designated address of the  Building.  The Building may be named after any person, or otherwise, whether or not such name shall be, or shall  resemble, the name of a tenant of space in the Building.  Landlord agrees to comply with restrictions relating to  exterior Building signage as set forth on Schedule 1-3 attached hereto.          Section 13.07  Any reservation of a right by Landlord or the Board to enter upon the Demised Premises  and to make or perform any Repairs, Alterations or other work in, to or about the Demised Premises which is the  obligation of Tenant pursuant to this Lease and Tenant has failed to so make or perform, shall not be deemed to: (i)  impose any obligation on Landlord or the Board to do so, (ii) render Landlord or the Board liable (to Tenant or any  third party) for the failure to do so, or (iii) relieve Tenant from any obligation to indemnify Landlord or the Board as  otherwise provided elsewhere in this Lease.          Section 13.08  Subject to the provisions of this Lease and to Force Majeure, Tenant shall have access to  the Demised Premises on a 24-hour per day, 365-day per year, basis.          Section 13.09  Except as otherwise provided in this Lease, Landlord shall use commercially reasonable  efforts  to  minimize  interference  with  Tenant’s  use  and  occupancy  of  the  Demised  Premises  for  the  conduct  of  Tenant’s  business  when  exercising  any  of  the  rights  reserved  to  Landlord  under  this  Article  13 (but  shall  not  be  obligated to use overtime or premium pay labor other than as expressly provided herein).                                             ARTICLE 14.                                                                                             BANKRUPTCY          Section 14.01  This  Lease  and  the  term  and  estate  hereby  granted  shall  be  subject  to  the  conditional  limitation  that,  if  any  one  or  more  of  the  following  events  shall  occur:   (i)  Tenant  shall  (a)  have  applied  for  or  consented to the appointment of a receiver, trustee, liquidator, or other custodian of Tenant or any of its properties or  assets, (b) have made a general assignment for the benefit of creditors, (c) have commenced a voluntary case for  relief as a debtor under the United States Bankruptcy Code or filed a petition to take advantage of any bankruptcy,  reorganization, insolvency, readjustment of debts, dissolution or liquidation law or statute or an answer admitting  the material allegations of a petition filed against it in any proceeding under any such law, or (d) be adjudicated a  bankrupt or insolvent, or (ii) without the acquiescence or consent of Tenant, an order, judgment or decree shall have  been entered by any court of competent jurisdiction (a) approving as properly filed a petition seeking relief under the  United States Bankruptcy Code or any bankruptcy, reorganization, insolvency, readjustment of debts, dissolution or  liquidation law or statute with respect to Tenant or with respect to all or a substantial part of Tenant’s properties or  assets, or (b) appointing a receiver, trustee, liquidator or other custodian of Tenant or of all or a substantial part of  Tenant’s properties or assets, and such order, judgment or decree shall have continued unstayed and in effect for any  period of ninety (90) days or more, then this Lease may be cancelled and terminated by Landlord by the sending of a  notice  to  Tenant  within  a  reasonable  time  after  Landlord  shall  be  notified  of  the  happening  of  any  of  the                                                  -63-    NY 78267766v2 

 

aforedescribed events.  Neither Tenant, nor any person claiming through or under Tenant or by reason of any statute  or order of court, shall thereafter be entitled to possession of the Demised Premises, but shall forthwith quit and  surrender  the  Demised  Premises.   If  this  Lease  shall  have  been  theretofore  assigned  in  accordance with the  provisions  of  Article  10  above,  then  the  provisions  of  this  Article  14  shall  be  applicable  only  to  the  party  then  owning Tenant’s interest in this Lease.          Section 14.02  Without  limiting  any  of  the  foregoing  provisions  of  this  Article 14,  if,  pursuant  to  the  United  States  Bankruptcy  Code,  Tenant  shall  be  permitted  to  assign  this  Lease  notwithstanding  the  restrictions  contained  in  this  Lease,  Tenant  agrees  that  adequate  assurance  of  future  performance  by  an  assignee  expressly  permitted under such United Stated Bankruptcy Code shall be deemed to mean (a) the deposit of cash security in an  amount equal to the sum of twelve (12) monthly installments of the Fixed Rent plus the Recurring Additional Rent  for the calendar year preceding the year in which such assignment is intended to become effective, which deposit  shall be held by Landlord for the balance of the Lease Term, without interest, as security for the full performance of  all of the obligations under this Lease on the part of Tenant to be performed, and (b) evidence by financial statement  prepared and certified by a certified public accountant that the assignee has a current net worth, after including the  assignment and excluding the value of the leasehold, sufficient to meet all of the remaining rental obligations under  this Lease.                                             ARTICLE 15.                                                                                   DEFAULTS, REMEDIES, DAMAGES          Section 15.01                    A.     This  Lease  and  the  term  and  estate  hereby  granted  shall  be  subject  to  the  conditional  limitation that, if any one or more of the following events (each an “Event of Default, and collectively, “Events of  Default”) shall occur:                         (i)     Tenant  shall  fail  to  pay  to  Landlord  (a)  the  full  amount  of  any  installment  of  Fixed Rent or Recurring Additional Rent when due and such failure continues for five (5) Business Days after the  date that Landlord gives notice of such failure to Tenant or (b) any other installment of additional rent when due and  such  failure  continues  for fifteen (15)  Business  Days after  the  date  that  Landlord  gives  notice  of  such  failure  to  Tenant; or                         (ii)    Tenant defaults in the performance or observance of any covenant, agreement,  term, provision or condition of this Lease on the part of Tenant to be kept, observed or performed (other than a  breach of the character referred to in clause 15.01A(i) above or clauses 15.01(A)(iii) or (v) below), and such breach  shall continue and shall not be fully remedied by Tenant within thirty (30) days after Landlord shall have given to  Tenant a notice specifying the same (except in connection with a breach which cannot be remedied or cured within  said thirty (30) day period, in which event the time of Tenant within which to cure such breach shall be extended for  such  time  as  shall  be  necessary  to  cure  the  same,  but  only  if  Tenant,  within  such  thirty  (30)  day  period,  shall  promptly commence and thereafter proceed diligently and continuously to cure such breach) and provided further  that  such  period  of  time  shall  not  be  so  extended if  it results in  reasonably  imminent  jeopardy  to  the  interest  of  Landlord in the Land and/or the Building or so as to subject Landlord to any liability, civil or criminal);                         (iii)   Any event shall occur or any contingency shall arise whereby this Lease or the  estate hereby granted or the unexpired balance of the Lease Term would, by operation of law or otherwise, devolve  upon  or pass  to  any  person,  firm,  association  or  corporation  other  than  Tenant,  except  as  may  be  expressly  authorized herein and such default shall continue for ten (10) Business Days after notice thereof to Tenant;                         (iv)    Intentionally Omitted; or                         (v)     A breach shall occur under Article 4 hereof and such breach shall continue and  shall not be fully remedied by Tenant within ten (10) Business Days after Landlord shall have given to Tenant a  notice specifying the same.                                                  -64-    NY 78267766v2 

 

               then, upon the occurrence of any of said Events of Default, Landlord may, at any time thereafter,  give to Tenant a notice of termination of this Lease setting forth a termination date five (5) Business Days from the  date of the giving of such notice, and, upon the giving of such notice, this Lease and the term and estate hereby  granted  (whether  or  not  the  Lease  Term  shall  theretofore  have  commenced)  shall  expire  and  terminate  upon  the  expiration of said five (5) Business Days with the same effect as if that day were the date hereinbefore set for the  expiration of the Lease Term, but Tenant shall remain liable for damages as provided in Section 15.02 below.                  B.     If Tenant shall default in the timely payment of Fixed Rent three (3) times within any  period of twelve (12) months (and notice of default shall have been given to Tenant in accordance with this Lease  with  respect  to  each  such  prior  default),  then,  notwithstanding  that  each  such default shall  have  been  cured,  any  further defaults in the timely payment of Fixed Rent occurring within said twelve (12) month period shall be deemed  an automatic Event of Default.                  C.     If  an  Event  of  Default  shall  have  occurred,  Landlord  and/or  Landlord’s  agents  and  employees, whether or not this Lease shall have been terminated pursuant to Articles 14 or 15, may, without further  notice  to  Tenant,  immediately  or  at  any  time  thereafter  re-enter  into  or  upon  the  Demised  Premises  or  any  part  thereof, either by summary dispossess proceedings or by any other lawful process, and may repossess the same, and  may remove any persons or property therefrom, to the end that Landlord may have, hold and enjoy the Demised  Premises again as and of its first estate and interest therein.  The words “re-enter”, “re-entry” and “re-entered” as  used in this Lease are not restricted to their technical legal meanings.  In the event of any termination of this Lease  under the provisions of Articles 14 or Article 15, or in the event that Landlord shall re-enter the Demised Premises  under the provisions of this Article 15, or in the event of the termination of this Lease (or of re-entry) by or under  any  summary  dispossess  or  other  lawful  process,  Tenant  shall  thereupon  pay  to  Landlord  the  Fixed  Rent  and  additional rent payable hereunder by Tenant to Landlord up to the time of such termination of this Lease, or of such  recovery of possession of the Demised Premises by Landlord, as the case may be, plus the expenses incurred or paid  by  Landlord  in  terminating  this  Lease  or  of  re-entering  the  Demised  Premises  and  securing  possession  thereof,  including reasonable attorneys’ fees and costs of removal and storage of Tenant’s property, and Tenant shall also  pay to Landlord damages as provided in Section 15.02 below.                  D.     In the event of the re-entry into the Demised Premises by Landlord under the provisions  of  this  Section 15.01,  and if  this  Lease  shall  not  be  terminated,  Landlord  may  (but  shall  have  absolutely  no  obligation to do so), not in Landlord’s own name, but as agent for Tenant, relet the whole or any part of the Demised  Premises for any period equal to or greater or less than the remainder of the original term of this Lease, for any sum  which Landlord may deem suitable, including rent concessions, and for any use and purpose which Landlord may  deem  appropriate.   Such  reletting  may  include  any  improvements,  personalty  and  trade fixtures  remaining  in  the  Demised Premises.                  E.     In the event of a breach or threatened breach on the part of Tenant with respect to any of  the covenants, agreements, terms, provisions or conditions on the part of or on behalf of Tenant to be kept, observed  or performed under this Lease, Landlord shall also have the right to obtain injunctive relief.                  F.     In the event of (i) the termination of this Lease under the provisions of Articles 14 or this  Article 15, or (ii) the re-entry of the Demised Premises by Landlord under the provisions of this Section 15.01, or  (iii) the  termination  of  this  Lease  (or  re-entry)  by  or  under  any  summary  dispossess  or  other  lawful  process  by  reason of an Event of Default hereunder on the part of Tenant, Landlord shall be entitled to retain all monies, if any,  paid  by  Tenant  to  Landlord,  whether  as  advance  rent,  security  deposit  or  otherwise,  but  such  monies  shall  be  credited by Landlord against any Fixed Rent, additional rent or any other charge due from Tenant at the time of such  termination and re-entry or, at Landlord’s option, against any damages payable by Tenant under Section 15.02 or  Legal Requirements.                  G.     The  specified  remedies  to  which  Landlord  may  resort  under  this  Lease  are  cumulative  and concurrent, and are not intended to be exclusive of each other or of any other remedies or means of redress to  which  Landlord  may  lawfully  be  entitled  at  any  time,  and  Landlord  may  invoke  any  remedy  allowed  under  this  Lease or at law or in equity as if specific remedies were not herein provided for, and the exercise by Landlord of any  one or more of the remedies allowed under this Lease or in law or in equity shall not preclude the simultaneous or  later exercise by the Landlord of any or all other remedies allowed under this Lease or in law or in equity.                                                  -65-    NY 78267766v2 

 

       Section 15.02                    A.     In the event of any termination of this Lease under the provisions hereof or under any  summary dispossess or other lawful process, or in the event that Landlord shall re-enter the Demised Premises under  the provisions of this Lease, in each case by reason of the occurrence of an Event of Default, Tenant shall pay to  Landlord as damages, at the election of Landlord, either:                         (i)     a sum which at the time of such termination of this Lease or at the time of any  such re-entry by Landlord, as the case may be, represents the then value of the excess, if any, of (a) the aggregate of  the installments of Fixed Rent and the regularly recurring additional rent (if any) which would have been payable  hereunder by Tenant, had this Lease not so terminated, for the period commencing with such earlier termination of  this Lease or the date of any such re-entry, as the case may be, and ending with the date hereinbefore set for the  expiration of the full term hereby granted pursuant to Articles 1 and 2, over (b) the aggregate rental value of the  Demised Premises for the same period (the amounts of each of clauses (a) and (b) being first discounted to present  value at an annual rate equal to the then prevailing discount rate announced by the Federal Reserve Bank); or                         (ii)    sums  equal  to the aggregate  of  the  installments  of  Fixed  Rent  and regularly  recurring additional rent (if any) which would have been payable by Tenant had this Lease not so terminated, or had  Landlord not so re-entered the Demised Premises, payable upon the due dates therefor specified herein following  such  termination  or  such  re-entry  and  until  the  date  herein  before  set  for  the  expiration  of  the  full  term  hereby  granted; provided, however, that if Landlord shall relet the Demised Premises during said period, Landlord shall  credit Tenant with the net rents received by Landlord from such reletting, such net rents to be determined by first  deducting from the gross rents as and when received by Landlord from such reletting the expenses incurred or paid  by Landlord in terminating this Lease and of re-entering the Demised Premises and of securing possession thereof,  including reasonable attorneys’ fees and costs of removal and storage of Tenant’s property, as well as the expenses  of  reletting,  including  repairing,  restoring  and  improving  the  Demised  Premises  for  new  tenants,  brokers’  commissions,  advertising  costs,  reasonable  attorneys’  fees  and  disbursements,  and  all  other  similar  or  dissimilar  expenses  chargeable  against  the  Demised  Premises  and  the  rental  therefrom  in  connection with  such  reletting,  it  being understood that such reletting may be for a period equal to or shorter or longer than the remaining term of this  Lease; and provided further, that (a) in no event shall Tenant be entitled to receive any excess of such net rents over  the  sums  payable  by  Tenant  to  Landlord  hereunder,  (b) in  no  event  shall  Tenant  be  entitled  in  any  suit  for  the  collection of damages pursuant to this Subdivision (ii) to a credit in respect of any net rents from a reletting except  to the extent that such net rents are actually received by Landlord prior to the commencement of such suit, and (c) if  the  Demised  Premises  or  any  part  thereof  should  be  relet  in  combination  with  other  space,  then  proper  apportionment on a square foot area basis shall be made of the rent received from such reletting and of the expenses  of reletting, or if relet for a period longer than the remaining term of this lease, the expenses of reletting shall be  apportioned based on the respective periods.                  B.     For the purposes of Section 15.02(A)(i), the amount of regularly recurring additional rent  which would have been payable by Tenant under Article 19 for each year, as therein provided, ending after such  termination of this Lease or such re-entry, shall be deemed to be an amount equal to the amount of such regularly  recurring additional rent payable by Tenant for the calendar year and Tax Year ending immediately preceding such  termination  of  this  Lease  or  such  re-entry.   Suit  or  suits  for  the  recovery  of  such  damages,  or  any  installments  thereof, may be brought by Landlord from time to time at Landlord’s election, and nothing contained herein shall be  deemed to require Landlord to postpone suit until the date when the term of this Lease would have expired if it had  not been terminated under the provisions of Articles 14 or Article 15, or under any provision of law, or had Landlord  not re-entered the Demised Premises.          Section 15.03  Nothing  contained  in  this  Article 15  shall  be  construed  as  limiting  or  precluding  the  recovery by Landlord against Tenant of any payments or damages to which, in addition to the damages particularly  provided above, Landlord may lawfully be entitled by reason of any default hereunder on the part of Tenant.  The  failure or refusal of Landlord to relet the Demised Premises or any part or parts thereof, or the failure of Landlord to  collect the rent thereof under such reletting, shall not release or affect Tenant’s liability for damages.          Section 15.04  Tenant,  for  Tenant,  and  on  behalf  of  any  and  all  persons  claiming  through  or  under  Tenant, including creditors of all kinds, does hereby waive and surrender all right and privilege which it or any of                                                  -66-    NY 78267766v2 

 

them might have under or by reason of any present or future law to redeem the Demised Premises, or to have a  continuance of this Lease for the term hereby demised, after Tenant shall be dispossessed or ejected therefrom by  process of law or under the terms of this Lease or after the expiration or termination of this Lease as herein provided  or pursuant to law.  Tenant also waives the provisions of any law relating to notice and/or delay in levy of execution  in case of an eviction or dispossess of a tenant for non-payment of rent, and of any other law of like import now or  hereafter in effect.  In the event that Landlord shall commence any summary proceeding for non-payment of rent or  for  holding  over  after  the  expiration  or  sooner  termination  of  this  Lease,  Tenant  shall  not,  and  hereby  expressly  waives any right to, interpose any counterclaim of whatever nature or description in any such proceeding (unless  failure to interpose such counterclaim would operate as a waiver thereof).            Section 15.05  The provisions of this Article 15 shall survive the expiration or sooner termination of this  Lease.                                             ARTICLE 16.                                                                           CURING TENANT’S DEFAULTS; REIMBURSEMENT          Section 16.01  If Tenant shall default (after notice and expiration of the applicable cure period) in the  observance  or  performance  of  any  term,  covenant,  provision  or  condition  on  Tenant’s  part  to  be  observed  or  performed  under  or  by  virtue  of  any  of  the  terms  or  provisions  in  this  Lease,  then,  unless  otherwise  provided  elsewhere  in  this  Lease,  Landlord  may  perform  the  obligation  of  Tenant  thereunder as  provided  in  this  Section  16.01. Prior to such performance, Landlord shall give Tenant a notice (the “Curing Notice”) identifying such failure  in detail and notifying Tenant of Landlord’s intention to exercise its rights under this Section 16.01 with respect  thereto  (and  including  an  estimate  of  the  cost  such  Landlord  will  incur  in  performing  such  Tenant  obligation  if  Landlord is reasonably able to ascertain such an estimate); provided, that the Curing Notice shall contain a legend in  not less than 14 point font bold upper case letters as follows: “THIS IS A TIME SENSITIVE NOTICE AND IF  TENANT SHALL FAIL TO CURE SUCH ITEM SPECIFIED IN THIS NOTICE WITHIN 10 BUSINESS  DAYS FOLLOWING TENANT’S RECEIPT OF THIS NOTICE THEN LANDLORD SHALL HAVE THE  RIGHT TO PERFORM SAME PURSUANT TO SECTION 16.01 OF THE LEASE.” If such failure by Tenant  shall continue for 10 Business Days after Tenant’s receipt of the Curing Notice (or, if such failure is not reasonably  susceptible of cure within such period, such longer period as may be reasonably necessary to complete the same; but  only  if  Tenant,  within such ten  (10)  Business  Day period,  shall  promptly commence  and  thereafter  proceed  diligently  and  continuously  to  cure  such  breach; and  provided  further  that  such  period  of  time  shall  not  be  so  extended if it results in reasonably imminent jeopardy to the interest of Landlord in the Land and/or the Building or  so  as  to  subject  Landlord  to any  liability,  civil  or  criminal), then  Landlord  shall  have  the  right  (but  shall  not  be  obligated), for the account of Tenant, to perform the obligation which Tenant so failed to perform.  If Landlord shall  make  any expenditures  or  incur  any  expenses,  including  court  costs  and  reasonable  attorneys’  fees  and  disbursements,  in  connection  with  the  foregoing,  then  such  fees,  disbursements,  costs  and  expenses  so  paid  or  obligations incurred shall be additional rent to be paid by Tenant to Landlord, upon demand, with interest thereon at  an annual rate (the “Interest Rate”) equal to the lesser of:  (a) the then prevailing prime rate (which, for the purposes  hereof, includes any equivalent or successor interest rate, however denominated) announced by Citibank, N.A. (or  JP Morgan Chase, if Citibank, N.A. shall not then have an established prime rate; or the prime rate of any major  banking  institution  doing  business  in  New  York  City,  as  selected by  Landlord,  if  neither  of  the  aforementioned  banks shall be in existence or have an established prime rate) (the “Prime Rate”) to be in effect at its principal office  in New York, New York plus four (4) percentage points, and (b) the maximum rate allowed by Legal Requirements.   Any interest payable by either party pursuant to this Lease at the Interest Rate shall be calculated from the day the  applicable expenditure is made or obligation is incurred until the date when such payment is finally and completely  paid by the applicable party.  Notwithstanding anything herein to the contrary, Landlord may exercise its cure right  set forth in this Section 16.01 immediately in case of emergency that will result in imminent harm to persons or  property and without prior notice to Tenant thereof (but Landlord shall provide notice thereof to Tenant promptly  after having so cured).          Section 16.02  Bills  for  any  property,  material,  labor  or  services  provided,  furnished  or  rendered,  or  caused to be provided, furnished or rendered, by Landlord to Tenant, may be sent by Landlord to Tenant monthly  (or immediately, at Landlord’s option), and shall be due and payable by Tenant as additional rent within thirty (30)  days after the same shall be sent to Tenant by Landlord.  If Landlord shall commence a summary proceeding against                                                  -67-    NY 78267766v2 

 

Tenant for non-payment of rent at any time following the expiration of such cure period as may be applicable under  Subsection 15.01A above, Tenant shall reimburse Landlord as additional rent for Landlord’s reasonable attorneys’  fees and expenses, both if judgment is awarded for Landlord, or if Tenant makes the payment subsequent to service  of process but prior to entry of judgment.  If Tenant or any subtenant of Tenant shall request Landlord’s consent to  any matter that requires Landlord’s consent under this Lease and if Landlord (in Landlord’s discretion) shall refer  the matter to Landlord’s attorneys or other professionals or consultants, then, whether or not such consent shall be  granted,  Tenant  shall  reimburse  Landlord  for  the  reasonable  fees  and  disbursements  incurred  by  Landlord  in  connection therewith as additional rent within thirty (30) days after a bill therefor shall have been rendered.          Section 16.03  If the Lease Term shall have expired or been terminated after or on the date that Landlord  shall have made any of the expenditures, or incurred any of the obligations, set forth in this Article 16, then all such  amounts and any interest thereon at the Interest Rate, as set forth in Section 16.01 above, shall be recoverable by  Landlord as damages.  The provisions of this Article 16 shall survive the expiration or sooner termination of this  Lease.          Section 16.04  Any  dispute  between  Landlord  and  Tenant  under  this  Article  16  shall  be  submitted  to  Expedited Arbitration in accordance with the provisions of Section 11.05B.                                             ARTICLE 17.                                                                                          QUIET ENJOYMENT          Section 17.01  Landlord covenants that for so long as this Lease is in full force and effect, Tenant may  peaceably and quietly enjoy the Demised Premises, subject nevertheless to the terms and conditions of this Lease.   This covenant shall be construed as a covenant running with the Land, and is not, nor shall it be construed as, a  personal covenant of Landlord, except to the extent of Landlord’s interest in this Lease and only for so long as such  interest shall continue.  Accordingly, this covenant shall bind and be enforceable against Landlord or any successor  to  Landlord’s  interest,  subject  to  the  terms  hereof,  only  for  so  long  as  Landlord  or  any  successor  to  Landlord’s  interest, respectively, shall be in possession and shall be collecting rent from Tenant, but not thereafter.                                             ARTICLE 18.                                                                                          BUILDING SERVICES          Section 18.01                    A.     (i)     From and after the Commencement Date, Landlord shall provide (or shall cause  the  Board  to  provide),  at  Landlord’s  cost  and  expense,  Building  services (including,  as  set  forth  below  in  more  detail,  passenger  and  freight  elevator  service,  HVAC  and  water  for  ordinary  drinking,  cleaning  and  lavatory  purposes) as set forth herein.  In addition, Landlord shall, at Landlord’s expense, provide cleaning services to the  Demised Premises and public portions of the 7-21 Condominium (and also both sides of the exterior windows of the  Building) on Business Days in accordance with the specifications set forth on Exhibit “E” annexed hereto.  Landlord  shall not be obligated to perform any cleaning with respect to any Dining Facility located in the Demised Premises  (other than the dust mopping of all composition tile flooring in nightly on Business Days) but Landlord shall remove  all  wet  garbage  (i.e.  all  garbage  other  than  paper  products)  generated  in  the  Demised  Premises  at  Tenant’s  commercially  reasonable  expense  pursuant  to  the  terms  of  this  Section  18.01A.  Tenant,  at  its sole expense,  may  perform all other cleaning with respect to the Demised Premises not performed by Landlord (including with respect  to any Dining Facility). Landlord and Landlord’s cleaning contractor and their employees shall have access to the  Demised  Premises  and  the free use  of  light,  power  and  water  facilities  in  the  Demised  Premises  as  shall be  reasonably required for the purpose of cleaning the Demised Premises in accordance with Landlord’s obligations  hereunder.  Tenant  shall  reimburse  Landlord  for  the  reasonable  out-of-pocket  cost  of  removal  from  the  Demised  Premises of so much of Tenant’s refuse and rubbish (x) as shall exceed that ordinarily accumulated in premises used  for uses similar to the Authorized Use in Comparable Buildings or (y) resulting from the misuse or neglect of the  Demised Premises on the part of Tenant (collectively, “Extra Rubbish Removal”).  The reimbursement for Extra  Rubbish Removal shall be made by Tenant to Landlord, as additional rent, within thirty (30) days after bills therefor  are rendered.                                                   -68-    NY 78267766v2 

 

                      (ii)    Notwithstanding  the  provisions of  subdivision  18.01A(i)  above,  Tenant  may  elect  to  require  Landlord  not  to  provide  any  cleaning  services  to  the  Demised  Premises,  and,  instead,  arrange  to  clean all (but not merely a portion) of the Demised Premises through an independent cleaning service contractor, at  Tenant’s sole cost and expense (it being expressly agreed that neither Fixed Rent nor any additional rent on account  of Operating Expenses shall be reduced as a result thereof) provided that, and subject to Section 5.04 hereof:  (w)  Tenant shall give to Landlord at least ninety (90) days prior notice thereof; (x) any reasonable out-of-pocket security  expenses  incurred  from  time  to  time  by  Landlord  (which  expenses  would  not  have  been  incurred  but  for  the  presence of Tenant’s cleaning contractor in the 7-21 Condominium or the Building) shall be paid by Tenant within  thirty  (30)  days  after  demand  therefor;  (y)  Tenant's  contractor  shall  store  all  of  its  equipment  and  supplies  and  material within the Demised Premises, and Landlord shall furnish no space therefor, except that Tenant shall have  the  right  to  use  the  janitor  closets  on  the  floors  of  the  Demised  Premises  to  store  such  equipment,  supplies  and  materials; and (z) Tenant shall be responsible for placing all of Tenant's refuse and rubbish in the freight elevator  lobby  on  each  floor  of  the  Demised  Premises,  and  Building  management  shall  be  responsible  for  bringing  such  refuse and rubbish to the Building's compactor, it being agreed that neither Tenant nor Tenant's contractor shall be  permitted access to the Building's compactor.  On not less than ninety (90) days prior notice, Tenant may request  that Landlord resume furnishing cleaning services to the Demised Premises, whereupon Landlord shall resume the  same.                  B.     (i)     With  respect  to  HVAC,  Landlord  shall,  at  Landlord’s  expense, provide  such  HVAC in accordance with the specifications set forth on Exhibit “G” annexed hereto.  If Tenant shall require HVAC  service during Overtime Periods, Landlord shall accommodate Tenant, provided that Landlord shall have received  notice of such requirement by 3:00 P.M. on the same day for overtime HVAC service on a Business Day and by  3:00  P.M.  of  the  immediately  preceding  Business  Day  for any  other Overtime  Periods.   Tenant  shall  pay  to  Landlord,  as  additional  rent  and  within  thirty  (30)  days  after  being  billed  therefor,  Landlord’s  then  established  hourly rate for such service, it being agreed that the 2020 annual charge for HVAC service during Overtime Periods  is $755.00 per hour (with such charge being pro-rated for any partial years), and that the annual charge thereafter  shall  be  increased  annually  by  the  Board  (at  the  Board’s  discretion),  and  with  any  minimum  time  period  as  prescribed  by  any  union  operating  in  the  Building  (the  “Union  Minimum  Hours”)  being  the  minimum  for  such  service during any Overtime Period on a Saturday, Sunday or Holiday, which, as of the Effective Date, is four (4)  hours.  Unless a request by Tenant for heat, ventilation and air-conditioning service during Overtime Periods shall  have been made for a period that immediately follows Business Hours (a “Continuous Period”), if Tenant requests  heat, ventilation and air-conditioning service during Overtime Periods, Tenant agrees to pay for the Union Minimum  Hours.                            (ii)    Landlord agrees that in the event that Tenant requires additional HVAC service  in the Demised Premises, Tenant may install, and Landlord consents to the installation of, at Tenant’s own cost and  expense in accordance with, and subject to, the applicable provisions of this Lease one (1) or more additional HVAC  system(s)  (hereinafter  referred  to  collectively  as  the  “Supplemental  Air-Conditioning  System”)  as  Tenant  may  reasonably require for the operation of Tenant’s business in the Demised Premises. Landlord shall not impose any  tap-in  fees  in  connection  with  the  installation  by  Tenant  of  Tenant’s  Supplemental  Air-Conditioning  System.  Landlord  shall  furnish,  if  required  by  Tenant,  up  to  a  maximum  of sixty  (60) tons  of  condenser  water  in  the  aggregate with respect to the Demised Premises for Tenant’s Supplemental Air-Conditioning System on a twenty- four  (24)  hours  per  day,  three  hundred  sixty-five (365) days  per  year  basis.  Tenant  shall  pay  to  Landlord,  as  additional rent and within thirty (30) days after being billed therefor, one twelfth (1/12th) of Landlord’s then-current  annual charges for condenser water, it being agreed that the 2020 annual charge for condenser water is $1,000.00 per  ton per annum (with such charge being pro-rated for any partial years), and that the annual charge thereafter shall be  increased by one and one-half percent (1.5%) on January 1 of each calendar year during the Lease Term.  If, on or  before  the date  that  is  ninety  (90) days following  the  Commencement  Date,  Tenant  shall  deliver  a  notice  (the  “Condenser Water Notice”) to Landlord specifying the exact quantity of condenser water desired by Tenant to be  reserved  for  Tenant’s  Supplemental  Air-Conditioning  System,  then,  from  and  after  the  Commencement  Date,  Landlord shall supply condenser water to the Demised Premises for the amount so requested (up to a maximum of  sixty (60) tons of condenser water).  If the amount of condenser water requested by Tenant in the Condenser Water  Notice shall be less than said maximum, Landlord shall no longer be obligated to reserve or allocate to Tenant any  condenser  water  over  and  above  the  amount  of condenser  water  requested  by  Tenant  in  such  Condenser  Water  Notice.  If Tenant shall not deliver a Condenser Water Notice to Landlord on or before the date that is ninety (90)  days following the Commencement Date, (a) Landlord shall reserve for Tenant’s use a maximum of sixty (60) tons                                                  -69-    NY 78267766v2 

 

of  condenser  water,  and  (b)  Tenant  shall  only  pay  for  condenser  water  for sixty  (60) tons  as  set  forth  above.     Landlord  shall  not  have  any  liability  to  Tenant  if  the  temperature  or  purity  of  condenser  water  fails  to  meet  minimum standards at any time or for any reason (but the foregoing shall not be construed to release Landlord from  Landlord’s obligations under Subsection 6.02A hereof).  Tenant is on notice that condenser water systems are not  foolproof,  and  covenants  to  install self-protective  measures.  During  the  Lease  Term,  Tenant  may  distribute  the  condenser water reserved by Tenant (or deemed to be reserved by Tenant, as the case may be) within the Demised  Premises (including between floors) as Tenant determines in its sole and absolute discretion.  If Tenant elects to (or  is deemed to have elected to) reserve condenser water for its use as set forth above (or Tenant reduces its amount of  reserved condenser water as set forth below) and Tenant thereafter requires additional condenser water and provided  such  additional  tonnage  is  then  available  in  Landlord’s  reasonable  judgment,  taking  into  account  any  additional  space leased by Tenant, the future needs of existing and future occupants of space in the Building (whether or not  such space is then vacant) as well as Landlord’s existing and future needs in the operation of the Building, Landlord  agrees that it will make such additional tonnage, pro-rated per rentable square foot of the additional space so rented  by  Tenant, available  to  Tenant. Notwithstanding  the  foregoing, if  Tenant  requires  additional  condenser  water on  account  of  the  leasing  by  Tenant  of  any Expansion  Space, Offer  Space  or  ROFR  Space  pursuant  to  the express  options set forth in this Lease, Landlord shall make such additional tonnage, pro-rated per rentable square foot of the  additional space so rented by Tenant, available to Tenant.  If Tenant thereafter requires fewer tons for the Demised  Premises than the number of tons Tenant reserved (or which Tenant is deemed to have reserved, as the case may be)  for its use pursuant to the foregoing terms, Tenant may reduce the amount of condenser water so reserved (but no  lower than Tenant’s actual then connected load) at any time during the Lease Term by the delivery of thirty (30)  days’ notice to Landlord with respect thereto, and the subsequent charges due and payable by Tenant for condenser  water  under  this  Section  18.01B(ii)  shall  be  adjusted  based  upon  such  reduction  in  the  amount  of  the  condenser  water reserved by Tenant.                  C.     Landlord  shall  provide (or  shall  cause  the  Board  to  provide),  at  Landlord’s  cost  and  expense, freight elevator service and/or loading dock access on a “first come, first served” basis during Business  Hours.   If  Tenant  shall  require  freight  elevator  service  and/or  loading  dock  access,  in  either  case,  during  any  Overtime Periods, then subject to (a) Landlord’s scheduling such service for other tenants in the Building on a first- come, first-serve basis, and (b) Landlord’s need to use such service for Building repairs or maintenance, Landlord  shall use commercially reasonable efforts to accommodate (or cause the Board to accommodate) Tenant, provided  that (I) Landlord shall have received reasonable advance notice (but in no event less than one (1) Business Day’s  prior notice) of such requirement, and (II) Tenant shall pay to Landlord, as additional rent and within thirty (30)  days after being billed therefor, Landlord’s then established hourly rate for such usage, on an hourly basis for any  reservation of the freight elevator and/or loading dock during any Overtime Period.  Landlord hereby advises Tenant  that as of the Effective Date, the overtime use of freight elevator and loading dock is subject to union rules regarding  the minimum number of hours of operation thereof.  Accordingly, unless a request by Tenant for freight elevator  service  and/or  loading  dock  service  during  Overtime  Periods  shall  have  been  made  for  a  Continuous  Period,  if  Tenant requests freight elevator service and/or loading dock service during Overtime Periods for less than the Union  Minimum Hours, Tenant agrees to pay for the Union Minimum Hours of such service plus the actual, reasonable,  out-of-pocket  cost  of  any  outside  security  service  engaged  by  Landlord  or  the  Board  in  connection  therewith.   Tenant acknowledges and agrees that use by Tenant of the freight elevator shall be subject to the requirements of the  Board and  the  Rules  and  Regulations. The  2020  hourly  rates  for  such  overtime  use  that  are  in  effect  as  of  the  Commencement  Date, but  which  hourly  rates  are  subject  to  future  increases  as  determined  by  the  Board  (at  the  Board’s  discretion), subject  to  any  applicable  union  rules  regarding  the  minimum  number  of  hours  of  operation  thereof,  are  (x)  $155.00 per hour  for  freight  elevator  service,  and  (y)  $155.00 per hour  for  loading  dock  access,  including  the  cost  of  one  or  more  security  guards.  Tenant  shall  cooperate  and  coordinate  with  Landlord  in  scheduling Tenant’s use of the freight elevator and loading docks during Tenant’s move in and any construction  performed by Tenant pursuant to the terms of this Lease, subject to the terms of Section 5.02G.                  D.     Subject  to  service  changes  due  to  emergency  and  necessary  maintenance, five  (5)  passenger  elevators  serving  the  Demised  Premises  at  all times during  Business  Hours  on  Business  Days,  with  at  least two (2) passenger elevators on call at all other times, in each case on a non-exclusive basis.                  E.     Landlord shall provide or shall cause the Board to provide in accordance with the terms  of the Condominium Documents security in the main lobby of the Building on a 24/7 basis commensurate with the  standards  of Comparable  Buildings;  provided,  however,  that,  except  to  the  extent  same  results  from  Landlord’s                                                  -70-    NY 78267766v2 

 

negligence or willful misconduct, Landlord shall not be liable, and Tenant hereby releases Landlord from any and all  liability, for injury or damage to the person or property of Tenant, Tenant’s agents, servants, employees, contractors,  invitees  or  visitors  caused  by  or  resulting  from  theft,  illegal  entry  or trespass,  vandalism  or  any  other  crime  committed by any person other than Landlord’s employees or agents.                    F.     Landlord shall provide or shall cause the Board to provide in accordance with the terms  of the Condominium Documents cold water to the Demised Premises for ordinary lavatory, drinking, office pantry  and office cleaning purposes, twenty-four (24) hours per day, seven (7) days per week.  If Tenant requires, uses or  consumes water for any other purposes (including for warming kitchen use in connection with the Dining Facility as  permitted  by  the  provisions  of  this  Lease)  or  in  unusual  quantities  (as  determined  by  Landlord  in  Landlord’s  reasonable  discretion), then  Landlord  may  (or,  at  Landlord’s  direction,  Tenant  shall)  install  a  meter  or  meters or  other means to measure Tenant’s water consumption, and Tenant agrees to pay for the cost of the meter or meters  and the installation thereof, and to pay for the maintenance of said meter equipment and/or to pay Landlord’s cost of  other means of measuring such water consumption by Tenant.  Tenant shall reimburse Landlord for the cost of all  water consumed as measured by said meter or meters (without markup by Landlord, and no other cost other than any  meter  reading  charges),  including  sewer  rents,  as  additional  rent,  within  thirty  (30)  days  after  bills  therefor  are  rendered.                    G.     Tenant agrees that Tenant shall not install any equipment that will exceed or overload the  capacity  of  any  utility  facilities,  and  that  if  any  equipment  installed  by  Tenant  shall  require  additional  utility  facilities, the same shall be installed by Tenant, at Tenant’s expense, subject to the provisions of Article 5 above.                  H.     As of the Effective Date, Landlord (or the Board) maintains bicycle racks in the loading  dock of the Building (which currently accommodates up to forty (40) bicycles) for use by tenants, subtenants and  other occupants of the Building on a non-exclusive basis. Tenant shall have the right to use such bicycle racks on a  “first-come, first-serve” basis with other tenants, subtenants and occupants of the Building.  Landlord reserves the  right, which may be exercised in Landlord’s or the Board’s sole discretion and for any reason whatsoever, to stop  maintaining bicycle racks and/or making the same available for use by the tenants of the 7-21 Condominium or the  Building; and Landlord shall have no responsibility or liability to Tenant for doing so or for the Board otherwise  failing  to maintain  the  bicycle  racks.   Tenant  expressly  waives  any  claim  against  Landlord,  the  Board  and  their  respective agents arising from or in connection with the use by Tenant or others of said bicycle racks, except to the  extent  arising  from  Landlord’s or  (subject  to  the  Condominium  Documents,  the  Board  SNDA  and  the  Board  Consent) the Board’s, or their respective agents’ negligence or willful misconduct.                   I.     The  Building  houses  an  emergency  standby  generator  (the  “Generator”)  to  supply  the  Building with standby electrical power.  Landlord shall, as part of Landlord’s Work, make available to the Demised  Premises approximately .25  watts  per usable square  foot  of  the  Demised  Premises of  standby  power  from  the  Generator.  Tenant  shall  use  the  standby  electrical  power  in  the  Demised  Premises  solely  for  emergency egress  lighting; it being agreed by Tenant that Tenant shall not use the standby electrical power for any mission critical or  other  systems  that  are  essential  for  operation  of  Tenant’s  business,  with  Tenant  acknowledging  that  the  standby  electrical power is not designed for mission critical operations.  Notwithstanding anything to the contrary contained  herein, Tenant acknowledges that, neither Landlord nor the Board shall have any liability to Tenant in the event that  the Generator fails to provide standby power to the Demised Premises or if the provision of (or failure to provide)  such standby power damages any of Tenant’s systems, equipment or property, the risk of such damage being fully  assumed by Tenant.            Section 18.02  The  term  “Business  Days”  shall  be  deemed to  mean  all  days  other  than  Saturdays,  Sundays  and  Holidays.   The  term  “Holidays”  shall  be  deemed  to  mean  all  federal,  state,  municipal  and  bank  holidays and Building Service Employees and Operating Engineer’s Union contract holidays now or hereinafter in  effect in New York, New York.  The term “Business Hours” shall be deemed to mean the hours from 8 A.M. to 6  P.M. on Business Days, except that with respect to HVAC, the term “Business Hours” shall be deemed to mean the  hours  from  8  A.M.  to  7  P.M.  on  Business  Days.   The  term  “Overtime  Periods”  shall  mean  all  times  other  than  Business Hours.           Section 18.03  Landlord reserves for the Board the right to stop the furnishing of the Building services  and  to  stop  service  of  the  Building  Systems  and  Landlord  shall  have  no  responsibility  or  liability  for  failure  to                                                  -71-    NY 78267766v2 

 

supply heat, elevator, plumbing, electric or other services during said period or when prevented from so doing by  Force Majeure or Legal Requirements.  Except as expressly set forth in Subsection 6.02B above, no diminution or  abatement  of  rent  or  other  compensation  shall  or  will  be  claimed  by  Tenant,  nor  shall  this  Lease  or  any  of  the  obligations of Tenant be affected or reduced, by reason of such interruption, curtailment or suspension, nor shall the  same constitute an actual or constructive eviction.              Section 18.04  Tenant shall, at Tenant’s own cost and expense, abide by all reasonable requirements that  Landlord or (subject to the Board SNDA and the Board Consent) the Board may prescribe for the proper protection  and  functioning  of  the  Building  Systems  and  the  furnishing  of  the  Building  services  for  the  Demised  Premises,  provided that such requirements apply generally to all office tenants in the Building, and are not enforced against  Tenant in a discriminatory manner.  Tenant also shall, at Tenant’s own cost and expense, reasonably cooperate with  Landlord and (to the extent required under the Condominium Documents, but subject to the Board SNDA and the  Board  Consent) the  Board in  any  conservation  effort  pursuant  to  a  program  or  procedure  promulgated  or  recommended  by  ASHRAE  (or  any  successor  organization)  or  any  Legal  Requirements,  provided  that  such  requirements apply  generally  to all  office  tenants  in  the  Building  and are  not  enforced  against  Tenant  in  a  discriminatory manner.          Section 18.05                    A.     Landlord  has  advised  Tenant that  the  Board  may  elect  to  operate  a  messenger  service  center in the Building and, as an additional Building service, to make the same available for use by the tenants of the  Building.  Tenant agrees that, if the Board shall so elect, the Board may require that all deliveries to the Demised  Premises  be  made  to  the  Building  messenger  service  center  (provided  that  such  requirement  (or  closure  of  such  messenger service center pursuant to the provisions of Subsection 18.05B below) is not enforced against Tenant in a  discriminatory  manner),  and  Landlord  may  screen  all  visitors  to  the  Demised  Premises  by  stopping  them  at  the  reception desk in the Building lobby, asking them to identify themselves and barring them from proceeding until  authorized by Tenant’s designee.  Landlord or the Board will provide these services, if at all, on a commercially  reasonable efforts basis and will not under any circumstances be liable for Tenant’s losses (including any and all  bodily harm or damage to property) incurred because the service failed to avoid a loss or injury, except to the extent  arising from Landlord’s or (subject to the Condominium Documents, the Board SNDA and the Board Consent) the  Board’s negligence or willful misconduct.                   B.     Without  limiting  the  generality  of  the  provisions  of  Section  18.03  above,  Landlord  reserves the right, which may be exercised in Landlord’s or the Board’s unfettered discretion and for any reason  whatsoever,  to  stop  making  the  Building  messenger  service  center  available  for  use  by  the  tenants  of  the  7-21  Condominium or the Building; and Landlord shall have no responsibility or liability to Tenant for doing so or for the  Board otherwise  failing  to  operate  the  Building  messenger  service  center.   Tenant  expressly  waives  any  claim  against  Landlord,  the  Board and  their  respective  agents  arising  from  or  in  connection with  the  use  by  Tenant  or  others of said messenger service center.                  C.     Tenant  agrees  that  all  deliveries  for  Tenant  which  the  Board  deems  too  large  to  be  accommodated through the Building messenger service shall, at Tenant’s expense, be delivered through the freight  delivery system pursuant to Subsection 18.01C.          Section 18.06                    A.     Landlord and/or the Board shall have the right to institute and maintain such additional  security system for the protection of the Building or the 7-21 Condominium as is then being maintained by prudent  landlords of Comparable Buildings.  In the event of such installations or implementation by Landlord, Tenant shall  reimburse Landlord (or the Board), as additional rent and within thirty (30) days after demand, for the reasonable  cost of any identification cards or keys furnished to Tenant or Tenant’s personnel in connection with the operation  of such security system.                  B.     During the Lease Term, Landlord shall provide or cause the Board to provide to Tenant,  at  no  additional  charge,  with exclusive  use  of  a  portion  of  the  existing  vertical  conveyor  shaft  in  the  7-21  Condominium, and the conduits and pathways set forth on Exhibit “N” attached hereto (collectively, “Telecom Riser                                                 -72-    NY 78267766v2 

 

Space”),  as  depicted  on  Exhibit “N” annexed  hereto,  which  Telecom  Riser  Space  shall  be  free  of  asbestos  upon  delivery of the same to Tenant.  Tenant shall be permitted, subject to the applicable provisions of this Lease, and at  Tenant’s  own  cost  and  expense,  to  install,  maintain,  repair  and  replace conduits,  pipes  or  other  similar  interconnecting lines, wires and cables in the Telecom Riser Space as Tenant shall deem necessary or desirable in  order  to  connect  with  the  systems  installed  by  Tenant  to  service  the  Demised  Premises,  including  Tenant’s  technology and telecommunications systems.  Landlord shall at all reasonable times provide Tenant with access to  the  Telecom  Riser  Space  through  any unoccupied space  in  the  Building  that  shall  be  owned  by  Landlord.  In  addition, Landlord shall use commercially reasonable efforts to provide Tenant with access to the Telecom Riser  Space through other space in the Building, subject to the rights of the Board and other tenants of such space and  subject  to  Tenant  paying  all reasonable attendant  costs.   Tenant  shall  obtain  and  pay  for  telecommunications  services  to  be  supplied  to  the  Demised  Premises  by  direct  application to  and  arrangement  with  any  data  or  telecommunications  service  provider  approved  by  Landlord  (such  approval  not  to  be  unreasonably  withheld or  delayed; it being acknowledged that, as of the date hereof, the Building is wired for Verizon, Time Warner Cable,  Light  Path, Light  Tower,  Level  3  and  AT&T)  and  promptly  after  receipt  by  Landlord  of  a  request  by  Tenant,  Landlord  shall  take  all  reasonable  steps  (at  Tenant’s  sole  cost  and  expense)  in  order  to  allow  such  telecommunications service provider to provide service to the Building for Tenant’s operations, provided that such  service provider enter into a license agreement with Landlord which is reasonably satisfactory to Landlord.            Section 18.07  Landlord  and  Tenant  acknowledge  that  Landlord  has  installed  a  distributed antenna  system (the “DAS”) at the Building for the benefit of all tenants in the 7-21 Condominium.  Landlord, at Landlord’s  cost and expense, shall work with the selected provider (or cause the same to occur) to ensure that the DAS antenna  will  provide  effective  coverage  throughout  the  Demised  Premises;  it  being  acknowledged  that  (a)  the  DAS  will  transmit and receive cell phone signals to and/or from wireless carriers, and (b) the DAS will not include any Wi-Fi  connectivity.  Landlord shall take commercially reasonable steps to enforce Landlord’s contract rights (or the rights  of  the  contracting  party,  as  applicable)  against  the  selected  provider  to  ensure  that  the  DAS  is  in  good  working  condition at all times (subject to reasonable periods as the DAS may need to be maintained, repaired or replaced)  and to minimize downtime.  Tenant acknowledges that the DAS is being provided without compensation or other  consideration and Tenant hereby agrees to irrevocably waive and release Landlord from any and all obligations or  liability whatsoever for any damage, cost or expense incurred by or on behalf of Tenant due to, or caused by, the  failure  or  inability  of  such  system  to  provide  service  to  Tenant,  it  being  agreed,  however,  that  such  waiver  and  release shall not affect Landlord’s obligations pursuant to this Section 18.07. As of the Effective Date, Landlord  hereby advises Tenant that the DAS carries Verizon.                                              ARTICLE 19.                                                                                    TAXES; OPERATING EXPENSES          Section 19.01  In addition to the Fixed Rent and any other additional rent hereinbefore reserved, Tenant  covenants and agrees to pay Landlord, as additional rent, all amounts computed in accordance with, and due and  payable by Tenant pursuant to, the provisions of this Article 19.          Section 19.02  For the purposes of this Lease:                  A.     The term “Taxes” (whether represented by one or more bills) shall mean, subject to the  second  to  last  sentence  of  this  Subsection  19.02A, the  total  amount  of  all  real  estate  taxes,  assessments,  special  assessments, water charges, sewer rents, vault charges, transit taxes, governmental levies, county taxes or any other  governmental charge, general or special, ordinary or extraordinary, unforeseen as well as foreseen, of any and every  kind or nature whatsoever, which are or may be levied, confirmed, charged, assessed or imposed upon the Unit(s) in  which the Demised Premises are located (i.e., the 14th Floor Unit, the 15th Floor Unit and the 16th Floor Unit as of  the date hereof) and/or Landlord’s interest therein and any rights or interests appurtenant thereto under the laws of  the United States, the State of New York or any political subdivision thereof, or by the City of New York or any  political  subdivision  thereof  (including  any  assessments,  levies,  impositions,  charges  or  taxes  arising  from  the  location of the Land or Building within a Business Improvement District or other area or zone which is subject to  governmentally  authorized  or  civic  related  assessments,  levies,  impositions,  charges  or  taxes  not  generally  applicable  to  other  portions  of  the  Borough  of  Manhattan  or  the  City  of  New  York) as  determined  by  the  governmental  authority having  jurisdiction  thereover  (the “Taxing  Authority”).  If,  due  to  a  future  change  in  the                                                  -73-    NY 78267766v2 

 

method  of  taxation  or  in  the Taxing Authority,  a  franchise,  income,  gross  receipts,  transit,  profit  or  other  tax  or  governmental imposition, however designated (including any tax, excise or fee, measured by or payable with respect  to any rents, licenses or other charges received by Landlord and levied against Landlord and/or the Unit(s) in which  the  Demised  Premises  are  located)  shall  be  levied  against  Landlord  and/or  the  Unit(s)  in  which  the  Demised  Premises are located in substitution (in whole or in part) for, or as an express addition to (provided that such addition  shall be applicable only to the owners of interests in New York City real property) or in lieu of, any Taxes, then such  franchise,  income,  gross  receipts,  transit,  profit  or  other  tax  or  governmental  imposition  shall  be  deemed  to  be  included within the definition of the term “Taxes” for the purposes hereof (provided that the same shall be computed  as if Landlord’s sole asset were the Unit(s) in which the Demised Premises are located).  The term “Taxes” shall not  include any general income, corporate franchise, estate, inheritance, succession, gift, capital stock, transfer tax or  any similar taxes levied on Landlord, any Overlandlord or Mortgagee, any occupancy taxes required to be paid by  Landlord as a result of Landlord’s tenancy in the Building, and taxes, assessments or charges which would otherwise  constitute Taxes to the extent included in Operating Expenses, or any taxes that are separately assessed against a  sign or billboard that is affixed to the Building or otherwise located on the Land, or any fines, penalties and other  similar  governmental  charges  applicable  to  the  foregoing,  together  with  any  interest  or  costs  with  respect  to  the  foregoing,  incurred  by  reason  of  Landlord's  failure  to  timely  make  any  payments  as  herein  provided  on  account  thereof (and not resulting from Tenant’s late payment of same).  If, due to a future change in the method of taxation  or as set forth by the Taxing Authority or any Legal Requirements, any tax assessment may be paid in installments,  then, in accordance with the provisions of this Section 19.02: (i) such assessment shall be deemed payable in the  maximum number of installments permitted by the Taxing Authority or under any Legal Requirements, and (ii) for  each Tax Year in which such installments shall be deemed payable, the installments of such assessment shall be  included in “Taxes” for such Tax Year.                  B.     The term “Tax Year” shall mean every twelve (12) consecutive month period, all or any  part of which shall occur during the Lease Term, commencing each July 1 or such other date as shall be the first day  of the fiscal tax year of The City of New York or as established by the Taxing Authority.                  C.     The term “Operating Year” shall mean each calendar year, all or any part of which shall  occur during the Lease Term, including the Base Operating Year.                  D.     The  term  “Operating  Statement”  shall  mean  a  statement  prepared  by  Landlord  or  Landlord’s  agent,  setting  forth in reasonable  detail Landlord’s  computation  of  the  amount  payable  by  Tenant  pursuant to Section 19.04 for a specified Operating Year.                  E.     The  term  “Operating  Expenses”  shall  mean  (subject  to  the  provisions  of  Subsection  19.02G  below),  without  duplication, all  reasonable  costs  and  expenses  paid  or  incurred  by  Landlord  or  on  Landlord’s  behalf (or  by  the  Board,  and  passed  through  to  Landlord) in  connection  with  the ownership,  management, repair,  maintenance,  replacement, restoration or  operation  of  the  7-21  Condominium,  the  Building,  and the Land, including the following items:                         (i)     Labor Costs (as such term is defined below) of persons performing services in  connection with the operation, repair and maintenance of the Land, the Building or the 7-21 Condominium;                         (ii)    the cost of (including any rental cost of) materials, equipment and supplies used  in the operation, cleaning, safety, security, renovation, replacement (subject to clauses (xvii) and (xviii) below) of  this  Section 19.02E), repair  and  maintenance  of  the  7-21 Condominium  and  the  Building and  the Land, and  any  Building Systems, including any sales and other taxes thereon;                         (iii)   the depreciation for, or the rental cost or value (including applicable sales taxes)  of, hand tools and other movable equipment used in the operation, cleaning, safety, security, repair or maintenance  of the 7-21 Condominium and the Building and the Land;                         (iv)    reasonable legal, accounting and other professional fees incurred in connection  with the operation or management of the Land, the Building or the 7-21 Condominium;                                                   -74-    NY 78267766v2 

 

                      (v)     intentionally omitted;                         (vi)    the  cost  of  all  charges  for  window  cleaning  and  other  cleaning,  janitorial,  security and other services, in and about the 7-21 Condominium and the Building and the Land;                         (vii)   premiums paid by Landlord or the Board, as the case may be, for rent, casualty,  boiler, sprinkler, plate-glass, liability and fidelity insurance with respect to the 7-21 Condominium, the Land or the  Building, and any other insurance Landlord or the Board, as the case may be, maintains or is required to maintain  with regard to the 7-21 Condominium, the Land or the Building;                         (viii)  costs  (including  all  applicable  taxes)  for  utilities  furnished  by  Landlord  to  the  Demised Premises pursuant to Article 18 above or Article 20 below;                         (ix)    telephone and stationery costs incurred in connection with the Building or the 7- 21 Condominium;                         (x)     the cost of painting and otherwise decorating any non-tenant areas of the 7-21  Condominium or the Building or the Land, other than such cost specifically attributable to a revenue producing item  within the 7-21 Condominium or the Building such as a kiosk rented or licensed to a third party;                         (xi)    the  cost  of  installing,  maintaining  and performing  ordinary  repairs (but  not  acquiring or replacing) art works in a manner commensurate with other first-class office buildings located on Sixth  Avenue between 42nd Street and 59th Street in Manhattan, as well as holiday decorations, for the lobby and other  public portions of the 7-21 Condominium or the Building, and its plazas (if any) and sidewalks;                         (xii)   the  cost  of  exterior  and  interior  landscaping  of  non-tenant  areas  of  the  7-21  Condominium, the Land, and the Building;                         (xiii)  dues and fees paid to real estate related professional and lobbying organizations  (e.g., REBNY), in the City of New York, that may have an impact on the Building and is customary for landlords of  Comparable  Buildings  to  be  members  of  same  (but  expressly  excluding  political  contributions,  charitable  contributions and gifts);                         (xiv)   franchise,  license  and  similar  fees and  charges  paid  by  Landlord  to  any  governmental agency for the privilege of owning, leasing, operating, maintaining or servicing the Building or the 7- 21 Condominium or any of their respective equipment, property or appurtenances (provided that the same shall be  computed as if Landlord’s sole asset were the Unit(s) in which the Demised Premises are located);                         (xv)    management fees (which shall not be in excess of the then prevailing rates for  management fees of Comparable Buildings), or, if no managing agent is then employed by Landlord, an amount in  lieu  thereof,  but,  in  either  event,  not  in  excess  of  the  then  prevailing  rates  for  management  fees  of  Comparable  Buildings (it being agreed that the management fees to be included in Operating Expenses for each year following  the  Base  Operating  Year  shall  be  calculated  using  the  same  percentage as  used  for  purposes  of  calculating the  management fees included in the Base Operating Year);                         (xvi)   the  cost  or  value,  or  the  cost  or  value  of  the  rental,  together  with  the  cost  of  installation, of any security for the Building or the 7-21 Condominium or other system used in connection with life  or property protection (including the cost, or the cost or value of the rental, of all machinery, electronic systems and  other equipment comprising any part thereof), as well as the cost of the operation and repair of any such system in  operation;                         (xvii)   the amortized cost (on a straight line basis) of any alteration or improvement  (including  the  replacement  of  equipment)  made after  the  Base  Operating Year to  the  7-21  Condominium  or  the  Building by  or  on  behalf  of  Landlord  or  the  Board,  in  either  case,  in  connection  with  the  maintenance,  repair,  management or operation of the 7-21 Condominium or the Building, as the case may be, that is made (1) in order to                                                  -75-    NY 78267766v2 

 

comply with Legal Requirements or the requirements of any Insurance Boards or the Board’s or Landlord’s insurer,  the case may be, but only if and to the extent (I) the same are required to be capitalized in accordance with generally  accepted  accounting  principles, and (II)  such  alterations  or  improvements  are  made  to  comply  with  a  Legal  Requirement (or any such other above requirements) that is (x) first enacted on or after the Commencement Date, or  (y) becomes effective before the Commencement Date but with respect to which the obligation to comply first arises  after the Commencement Date, or (2) pursuant to Subsection 40.05B hereof; it being agreed that with respect to the  costs incurred under clauses (1) and/or (2) above, the amount of such costs included in Operating Expenses for any  Operating  Year  shall  be  the  cost  thereof  amortized  in  accordance  with  generally  accepted  accounting  principles,  together with interest thereon at the Prime Rate, in equal annual installments over the useful life of such alteration or  improvement  (or  replacement  of  equipment)  as  determined  in  accordance  with  generally  accepted  accounting  principles (until the cost of such alteration or improvement (or equipment) is amortized fully);                         (xviii) the  amortized  cost  (on  a  straight  line basis) of  any  alteration  or  improvement  (including  the  replacement  of  equipment)  made after  the  Base  Operating  Year to  the  7-21  Condominium  or  the  Building by or on behalf of Landlord or the Board, as the case may be, for purposes of saving or reducing Operating  Expenses  (for  example,  an  improvement  that  reduces  Labor  Costs)  provided  that  (I)  such  cost  is  required  to  be  capitalized  in  accordance  with generally  accepted  accounting  principles; and  (II)  the  amount  that  is  included  in  Operating  Expenses  for  any Operating  Year  shall  be  the  amount  that  amortizes  the  cost  of  such  alteration  or  improvement,  together  with  interest  thereon  calculated  at  the  Prime  Rate,  in  equal  annual  installments  over  the  useful life of such alteration or improvement (or replacement) as determined in accordance with generally accepted  accounting principles until the cost of such alteration or improvement (or replacement) is amortized fully, it being  agreed, however, that for any such alteration or improvement (or replacement) that Landlord makes for the purpose  of saving or reducing Operating Expenses (and that Landlord does not make pursuant to the immediately preceding  clause (xvii)), the aforesaid amount that Landlord includes in Operating Expenses for any particular Operating Year  shall not exceed the amount of the reduction in Operating Expenses for such Operating Year that derives from such  alteration or improvement (or replacement); and                         (xix)   Common  Charges  allocable  to  the  7-21  Condominium,  but  only  if  and  to  the  extent not otherwise duplicated by the charges set forth in clauses (i) through (xviii) of this Subsection 19.02E, and  only to the extent that the types of costs and expenses that comprise such Common Charges would not have been  otherwise  excluded  from  Operating  Expenses  in  accordance  with  Subsection  19.02G.  In  furtherance  of  the  foregoing, whenever any items included in Operating Expenses pursuant to this Article 19 are listed as having been  made, incurred or paid by the Board or incurred for, made to or otherwise relate to the Building and/or the Land,  only the portion of Common Charges allocable to the 7-21 Condominium shall be included in Operating Expenses in  connection therewith, it being agreed and understood that if an Operating Expense is made or incurred with respect  to the Building and/or the Land, Landlord and/or the Board shall have the right to reasonably allocate a pro rata  portion of such Operating Expense to the 7-21 Condominium and such portion shall be included as an Operating  Expense hereunder.                  F.     The term “Labor Costs” shall mean any and all expenses incurred by the Board on the  Board’s behalf or by Landlord or on Landlord’s behalf which shall be related to employment of personnel, including  amounts incurred for wages, salaries and other compensation for services, payroll, social security, unemployment  and other similar taxes, Workers’ Compensation insurance, benefits, pensions, hospitalization, retirement plans and  insurance (including group life and disability), uniforms and working clothes and the cleaning thereof, and expenses  imposed on or on behalf of Landlord pursuant to any collective bargaining agreement relating to such employees  employed with respect to the Building.  With respect to employees who are not employed on a full-time basis with  respect  to  the  Building  or  the  7-21  Condominium,  a  pro rata  portion of  expenses  allocable  to  the  time  any  such  employee is employed with respect to the Building or the 7-21 Condominium shall be included in Labor Costs.                  G.     The term “Operating Expenses” shall not include the following items:                         (i)     Labor Costs in respect of officers and executives of Landlord or the Board, as  the case may be, or other personnel above the grade of building manager, unless for work actually performed in or  about  the  Building or  7-21  Condominium  ordinarily  done  by  an  independent  third  person,  and  then  only  at  compensation no higher than competitive market rates which would have been charged by such third person;                                                  -76-    NY 78267766v2 

 

                      (ii)    legal fees, leasing commissions, advertising expenses, entertainment, marketing  and promotional expenses incurred in the leasing of space in the Building or the 7-21 Condominium, as well as all  other similar costs  incurred  in  connection  with  leasing  or  subleasing  or  licensing  space,  canceling  leases,  assignments of leases, and/or preparing space in the Building or the 7-21 Condominium for leasing or occupancy,  including  construction  allowances,  alteration  and  demolition  costs  (including  related  filing  fees),  relocation  costs  and lease assumption and takeover costs (including termination payments) incurred by Landlord or the Board;                         (iii)   insurance premiums, but only if and to the extent that (x) Landlord or the Board  is  specifically  entitled  to  be  reimbursed  therefor  by  Tenant  pursuant  to  this  Lease  (other  than  pursuant  to this  Article) or by any other tenant or other occupant of the Building or 7-21 Condominium pursuant to its lease (other  than pursuant to an operating expenses escalation clause contained therein), or (y) such premiums are being paid to  obtain insurance or to cover risks not then customarily insured against by landlords of Comparable Buildings;                         (iv)    the  cost  of  any  repairs  or  maintenance  for  which  Landlord  or  the  Board  is  entitled to be reimbursed by insurance (or would have been reimbursed therefor by insurance had Landlord or the  Board carried  the  insurance  coverage required  under  this Lease or  the  Condominium Documents,  as  applicable),  warranties, service contracts or otherwise compensated, including reimbursement by any tenant;                         (v)     expenses  solely  allocable  to  any retail  space  of  the  Building  or  the  7-21  Condominium (other than sidewalks);                          (vi)    the cost of capital expenditures for improvements, other than those described in  Section 19.02E(xvii) and (xviii) above;                         (vii)   the cost of electricity furnished to the Demised Premises or any other space in  the 7-21 Condominium or the Building that is leased or leasable to tenants;                         (viii)  Taxes  (other  than  as  included  within  Common  Charges)  and  any  franchise,  income, estate, inheritance, succession, gift, capital stock, excess profit or transfer taxes imposed upon Landlord;                         (ix)    financing and refinancing costs (including any mortgage recording tax and title  expenses),  and  payments  of  mortgage  interest  and  principal,  securing  the  Land,  the  Building  or  the  7-21  Condominium, and all legal and professional fees incurred in connection with the foregoing;                         (x)     legal fees incurred in in disputes with tenants, the enforcement of any leases in  the Building or the 7-21 Condominium or in defending any suits brought by tenants with respect to their leases, as  well  as  all other  legal  and  other  professional  expenses  not  related  to  the  operation,  maintenance,  repair  and/or  security of the 7-21 Condominium or the Building;                         (xi)    the  cost  of  HVAC  service  (including  costs  related  to  condenser  water)  or  any  other service during Overtime Periods for any tenants of the 7-21 Condominium or the Building;                         (xii)   ground  rent  or  any  other  payments  paid  under  Underlying  Leases  (other  than  payments which, independent of the Underlying Lease, would constitute an Operating Expense hereunder);                         (xiii)  depreciation and amortization of the 7-21 Condominium or the Building;                         (xiv)   any  fee  or  expenditures  paid  to  any  corporation  or  entity  which  controls,  is  controlled by or is under common control with Landlord, but only if and to the extent that such amount exceeds the  amount  of  costs  and  the  expense  which  would  customarily  be  paid  by  landlords  of Comparable  Buildings  to  a  similar non-affiliated entity for similar services;                         (xv)    any costs incurred for the purpose of effecting a sale of the 7-21 Condominium,  the Building or the Land or any portion thereof or any other real property interest therein or in any person or entity                                                   -77-    NY 78267766v2 

 

of whatever tier owning an interest therein and the cost of maintaining, organizing or reorganizing the legal entity  that is the landlord under this Lease;                         (xvi)   costs  to  perform  work  or  to  provide  services  for  any  tenant  of  the  7-21  Condominium  or  the  Building,  but  only  if  and  to  the  extent  that  (x)  such  work  or  services  exceed  that  which  Landlord  furnishes  generally  (with  no  additional  expense)  to  the  tenants (including  Tenant)  of  the  7-21  Condominium or the Building, or (y) the same is furnished to a tenant (including Tenant) pursuant to the terms of  the lease with such tenant wherein such tenant is being required to pay a separate or additional charge therefor;                         (xvii)  to the  extent  any  costs  includable  in  Operating  Expenses  are  incurred  with  respect to both the 7-21 Condominium or the Building and other properties (including Labor Costs of Landlord’s  personnel who provide services to both the 7-21 Condominium or the Building and other properties), there shall be  excluded  from  Operating  Expenses  a  fair  and  reasonable  percentage  thereof  which  is  properly  allocable  to  such  other properties;                         (xviii) payments  and  costs of  any  amounts (including  attorney’s  fees  and  costs  of  settlements, judgments  and  arbitration  awards)  to  any  person  seeking  recovery  for  negligence  or  other  torts  committed by Landlord or Persons Within Landlord’s Control;                         (xix)   costs  relating  to  withdrawal  liability  or  unfunded  pension  liability  under  the  Multi-Employer Pension Plan Act or similar Legal Requirement;                         (xx)    the cost of installing, operating and maintaining any specialty facility, such as an  observatory,  lodging,  broadcasting  facilities,  luncheon  club,  athletic  or  recreational  club,  child  care  facility,  auditorium, cafeteria  or  dining  facility,  conference  center  or  similar  facilities,  including  the  Amenity  Space,  but  operating and maintenance costs therefor shall be excluded only if use of such specialty service is restricted and not  available to all tenants of the 7-21 Condominium or the Building;                         (xxi)   any interest, fine, penalty or other late charges payable by Landlord, incurred as  a result of late payments of any nature, except to the extent the same was incurred with respect to a payment, part or  all of which, was the responsibility of Tenant hereunder and with respect to which Tenant did not make in a timely  fashion or did not make at all;                         (xxii)  the  cost  of  repairs  or  replacements  or  restorations  by  reason  of  fire  or  other  casualty or condemnation;                         (xxiii) costs and expenses incurred by Landlord in connection with any obligation of  Landlord  to  indemnify  any  7-21  Condominium  or  Building  tenant  (including  Tenant)  pursuant  to  its  lease  or  otherwise;                         (xxiv)  the  costs  of  removal,  encapsulation  or  treatment  of  asbestos  and  asbestos  containing materials in the 7-21 Condominium;                         (xxv)   the  costs  of  removal,  encapsulation  or  treatment  of  Hazardous  Materials  in  or  about the Building or the 7-21 Condominium, other than costs of routine maintenance that is customarily performed  in Comparable Buildings;                         (xxvi)  any bad debt loss, rent loss or reserves for bad debts or rent loss;                         (xxvii) interest, penalties and late charges that in any such case are incurred by reason  of Landlord's failure to comply with Legal Requirements;                         (xxviii) accounting fees, other than those incurred in connection with (x) the operation  of the 7-21 Condominium, or (y) the preparation of statements furnished to tenants of the 7-21 Condominium or the  Building pursuant to additional rent or lease escalation provisions of their leases;                                                  -78-    NY 78267766v2 

 

                      (xxix)  costs  of  performing  Landlord’s Work and  Landlord’s  Additional  Work and  expenditures for repairing and/or replacing any defect in Landlord’s Work and Landlord’s Additional Work;                         (xxx)   any costs incurred for the purpose of effecting an acquisition or sale of air or  development rights, easements or other real property interests;                          (xxxi)  costs  of  overtime  or  premium  pay  labor  incurred  by  Landlord  in  performing  Repairs, but only if and to the extent that the need for such Repair results from Landlord’s default under this Lease;                          (xxxii) the cost of acquiring or replacing any separate electrical meter, water meter or  other utility meters Landlord may provide to any of the tenants in the 7-21 Condominium or the Building;                          (xxxiii) costs  incurred  in  connection  with  making  any  addition  to  the  Building  or  its  plazas, or adding buildings or other structures adjoining the Building, or connecting the Building to other structures  adjoining the Building;                          (xxxiv) costs (including, without limitation, any taxes or assessments) allocable to any  commercial signage revenue or tenants’ or occupants’ signs (other than the signs of any Persons Within Tenant’s  Control); and                         (xxxv)  duplicative charges of the same item.                  H.     If,  during  all  or  part  of  any  Operating  Year (including  the  Base  Operating  Year),  Landlord or the Board shall not furnish any particular item(s) of work or service (which would otherwise constitute  an Operating Expense hereunder) to portions of the 7-21 Condominium or the Building, as the case may be, due to  the fact that (i) such portions of the Building or the 7-21 Condominium are not occupied or leased, (ii) such item of  work  or  service  is  not  required  or  desired  by  the  tenant  of  such  portion,  (iii) such  tenant  is  itself  obtaining  and  providing such item of work or service, or (iv) for any other reason, then, for the purposes of computing Operating  Expenses, the Operating Expenses for such period shall be increased to reflect the Operating Expenses that would  have been incurred if such item of work or services had been performed or delivered to such portion of the 7-21  Condominium or the Building, as the case may be, or to such tenant. In determining the amount of the Operating  Expenses for any Operating Year, if less than one hundred percent (100%) of the rentable square feet of the 7-21  Condominium or the Building, as the case may be, shall have been occupied by tenants at any time during such  Operating Year, then the Operating Expenses for such Operating Year shall be grossed up to reflect the Operating  Expenses  as  if  one  hundred  percent  (100%)  of  all  such  rentable  square  feet  had  been  occupied  throughout  such  Operating Year (including the Base Operating Year).                  I.     Unless  expressly  excluded  from  Operating  Expenses  pursuant  to  Subsection  19.02G  above or expressly provided otherwise elsewhere in this Lease, all items of cost and expense identified in this Lease  as  being  “at  Landlord’s  cost  and  expense”  or  “at  the  Board’s  cost  and  expense”  or  phrases  of  similar  import  (regardless of whether the words “solely” or “exclusive” are used in connection therewith, and regardless of whether  specific reference is made to Landlord’s or the Board’s right to recoup such cost or expense as part of Operating  Expenses or Common Charges, as the case may be) shall be included in Operating Expenses.          Section 19.03                    A.     (i)     If, from and after the first (1st) anniversary of the Rent Commencement Date, the  Taxes applicable with respect to any Tax Year (occurring in whole or in part during the Lease Term) shall be greater  than the Base Tax Amount, Tenant shall pay to Landlord, as additional rent for each such Tax Year from and after  the Rent Commencement Date, an amount equal to Tenant’s Tax Share of the amount by which the Taxes applicable  with respect to such Tax Year exceed the Base Tax Amount (“Tenant’s Tax Payment”).                          (ii)    Tenant’s  Tax  Payment for  each  Tax  Year  shall  be  due  and  payable  in  installments  in  the  same  manner  that  Taxes  for  such  Tax  Year  are  due  and  payable  by  Landlord.  If  by  Legal  Requirements,  Taxes  may  be  paid  in  multiple  installments  without  the  imposition  of  any  interest,  fee  or other                                                  -79-    NY 78267766v2 

 

charge, such assessment shall be payable hereunder in the maximum number of installments so permitted by Legal  Requirements without imposition of any interest, fee or other charge. Landlord has advised Tenant that as of the  Effective Date, Landlord pays Taxes in two (2) equal installments and, accordingly, Tenant shall pay to Landlord, as  additional rent, Tenant’s Tax Payment in two (2) equal installments, with the first such installment due and payable  on the June 1st immediately preceding the commencement of the Tax Year for which the Tax Statement is being  rendered, and the second such installment due and payable on the immediately following December 1st; provided,  however,  that  if  Landlord  shall  not  have  delivered  a  Tax  Statement  by  May 1st immediately  preceding  the  commencement of the Tax Year for which the Tax Statement is being rendered, then the installment of Tenant’s Tax  Payment otherwise due hereunder on the immediately following June 1st shall not be due until the thirtieth (30th)  day after Landlord shall deliver said Tax Statement to Tenant.  In the event that the Taxing Authority shall change  the time for the payment, or number of installments, of Taxes, or if a Mortgagee shall require a periodic escrow  payment on account thereof, the time when Tenant’s installments of the Tax Payment shall be due and payable to  Landlord shall be similarly adjusted.  In the event of any change in the fiscal period constituting a Tax Year, Taxes  levied  during  any  transitional  period  shall  be  added  to  the first subsequent  Tax  Year.  Within  a  reasonable  time  period after Landlord’s receipt of a tax bill from the Taxing Authority  for Taxes payable for any Tax Year (but in  any event, within thirty (30) days of Landlord’s receipt thereof), Landlord shall submit to Tenant a statement (the  “Tax Statement”) indicating the amount, if any, required to be paid by Tenant as additional rent as in this Section  provided.  Alternatively, if, with respect to any Tax Year or installment due date thereof, Landlord shall believe that  the Taxing Authority will not be issuing a tax bill for Taxes in a sufficiently timely manner so as to allow Landlord  to  receive  the  Tax  Payment  from  Tenant  in  accordance  with  the  provisions set  forth below,  then Landlord  may  render  a  Tax  Statement  to  Tenant  based  on  Landlord’s  good  faith  estimate  of  the  relevant  Taxes,  subject  to  adjustment within a reasonably prompt time period (not to exceed thirty (30) days) following the date on which the  Taxing  Authority  shall  actually  issue  the  tax  bill(s)  pertaining  to  such  Taxes.  Simultaneously  with  Landlord’s  submission  to  Tenant  of  the  Tax  Statement  (or,  if  not  then  available,  promptly  after  the  issuance  by  the  Taxing  Authority of the applicable tax bills), Landlord shall submit to Tenant a copy of the relevant tax bill.                      B.     If, following the delivery of any Tax Statement, Landlord shall receive a refund of Taxes  with respect to a Tax Year for which Tenant has paid Tenant’s Tax Payment, then Tenant’s Tax Share of the net  proceeds of such refund that pertain to the Unit(s) in which the Demised Premises are located (i.e., the 14th Floor  Unit, the 15th Floor Unit and the 16th Floor Unit as of the date hereof), after deduction of legal fees, appraiser’s fees  and other expenses reasonably incurred in obtaining reductions and refunds and collecting the same (to the extent  such costs and expenses were not included in Taxes for such Tax Year) shall be applied and allocated to the periods  for which the refund was obtained and, if Tenant shall not be in default of any of Tenant’s monetary or material non- monetary obligations under this Lease (after notice of such default shall have theretofore been given to Tenant, but  subject to the provisions of Section 19.06 below), Landlord shall credit to Tenant against the next installments of  Fixed Rent or Recurring Additional Rent due hereunder an amount equal to Tenant’s Tax Share of the net proceeds  of such refund that pertain to the Unit(s) in which the Demised Premises are located (i.e., the 14th Floor Unit, the  15th Floor Unit and the 16th Floor Unit as of the date hereof).  In no event shall any credit due to Tenant hereunder  exceed  the  sum  paid  by  Tenant  for  such  particular  Tax  Year.   Only  Landlord  shall  be  eligible  to  institute  tax  reduction or other proceedings to reduce the assessed valuation of the 7-21 Condominium.  In no event shall Tenant  have the right to seek from the taxing authority any refund or reduction of Taxes.  If Landlord shall obtain or attempt  to obtain a reduction in Taxes for that Tax Year, then Tenant shall pay to Landlord, within thirty (30) days following  the  issuance  to  Tenant  of  a  bill  therefor,  an  amount  equal  to  Tenant’s  Tax  Share  of  all  out-of-pocket  costs  and  expenses  (including  legal,  appraisal,  accountant  and  other  expert  fees  (which  reasonable  legal  fees  may  include  customary  contingent fees  for  matters  of  this  type  in  Manhattan)  and  costs  related  to  the  filing of  Real  Property  Income and Expense Statements) incurred by Landlord in obtaining or attempting to obtain such reduction (without  duplication of any amounts received pursuant to the other provisions of this Article 19).                        C.     If there shall be a reduction or refund of Taxes for the Tax Year utilized in computing the  Base  Tax  Amount,  Landlord shall  furnish  to Tenant  a  statement  indicating  the  amount thereof,  and  all  prior  and  future additional rent payments provided for in this Section 19.03 shall be recalculated accordingly.  Any additional  payment due for any Tax Year shall be made by Tenant within thirty (30) days after the furnishing to Tenant of the  revised statement.                  D.     Tenant shall pay, before delinquency, all rent and occupancy taxes and all property taxes  and  assessments  on the  furniture,  fixtures,  equipment  and  other  property  of  Tenant at  any  time situated  on  or                                                  -80-    NY 78267766v2 

 

installed in the Demised Premises, and on additions and improvements in the Demised Premises made or installed  by Tenant subsequent to the Commencement Date, if any.  If at any time during the Lease Term any of the foregoing  are assessed as a part of the real property of which the Demised Premises are a part, Tenant shall pay to Landlord  within thirty (30) days after demand therefor the amount of such additional taxes as may be levied against said real  property by reason thereof.          Section 19.04                    A.     Commencing  on  the first  (1st)  anniversary  of  the  Rent  Commencement  Date,  for  each  Operating Year, any part of which shall occur during the Lease Term, Tenant shall pay an amount (the “Operating  Expense Payment”) equal to Tenant’s Operating Share of the amount, if any, by which Operating Expenses for such  Operating Year shall exceed the Operating Expenses for the Base Operating Year; provided, however, that if the  Rent Commencement Date shall occur other than on the first day of an Operating Year or if the Lease Term shall  expire or be sooner terminated on other than the last day of an Operating Year, then the Operating Expense Payment  in respect thereof shall be prorated to correspond to that portion of such Operating Year occurring within the Lease  Term that follows the first (1st) anniversary of the Rent Commencement Date.                  B.     Landlord shall endeavor to furnish to Tenant a statement (an “Estimate Statement”) prior  to  January  1  for  each  Operating Year setting  forth  Landlord’s  reasonable  estimate  of  the  Operating  Expense  Payment for such Operating Year (the “Estimated Payment”).  Tenant shall pay to Landlord on the first day of each  month  during  each  Operating  Year  an  amount  equal  to  one  twelfth  (1/12th)  of  the  Estimated  Payment  for  such  Operating  Year.   If  Landlord  furnishes  an  Estimate  Statement  for  an  Operating  Year  subsequent  to  the  commencement  thereof,  then:   (i)  until  the  first  day  of  the  month  following  the  month  in  which  the  Estimate  Statement shall be furnished to Tenant, Tenant shall continue to pay to Landlord on the first day of each month an  amount equal to the monthly sum payable by Tenant to Landlord with respect to the most recent Operating Year; (ii)  promptly  after  the  Estimate  Statement  shall  be  furnished  to  Tenant,  Landlord  shall  give  notice  to  Tenant  stating  whether the amount previously paid by Tenant to Landlord for the current Operating Year was greater or less than  the  installment  of  the  Estimated  Payment  to  be  paid  for  the  current  Operating  Year,  and  (x)  if  there  shall  be  a  deficiency, Tenant shall pay the amount thereof to Landlord within thirty (30) days after demand therefor, or (y) if  there shall have been an overpayment, Landlord shall credit the amount thereof against the next installment of the  Estimated  Payment  or  Operating  Expense  Payment  or  Fixed  Rent,  as  applicable;  and (iii)  on  the  first  day  of  the  month following the month in which the Estimate Statement shall be furnished to Tenant, and monthly thereafter  throughout  the  remainder  of  such  Operating  Year,  Tenant  shall  pay  to  Landlord  an  amount  equal  to  one-twelfth  (1/12th) of the Estimated Payment shown on the Estimate Statement for such Operating Year.  Landlord may, during  an Operating Year (but not more than twice during any such Operating Year), furnish to Tenant a revised Estimate  Statement,  and,  if  a  revised  Estimate  Statement  shall  be  furnished  to  Tenant,  the  Estimated  Payment  for  such  Operating Year shall be adjusted in the same manner as provided in the preceding sentence.                  C.     Promptly  following  the  expiration  of  each  Operating  Year,  Landlord  shall  furnish  to  Tenant an annual Operating Statement (the “Annual Statement”) for such Operating Year.  Landlord shall endeavor  to  furnish  the  Annual  Statement  for  each  Operating  Year not  later  than  the  180th  day following  the  end  of  such  Operating Year.  If the Annual Statement shows that the Estimated Payment for such Operating Year exceeds the  Operating Expense Payment which should have been paid for such Operating Year, then Landlord shall credit the  amount  of  such  excess  against  the  next  installment  of  the  Estimated  Payment  or  Operating  Expense  Payment or  Fixed  Rent,  as  applicable,  payable  under this Lease  (except  that,  at  the  expiration  of  the  Lease  Term,  any  such  unpaid  amounts  shall  be  paid  by  Landlord  to  Tenant simultaneously  with  Landlord’s  delivery  of  the  Annual  Statement, provided that Tenant shall not be then be in monetary or material non-monetary default under this Lease,  but  subject  to  Section 19.08 hereof;  if  the  Annual  Statement  for  such  Operating  Year  shows  that  the  Estimated  Payment for such Operating Year was less than the Operating Expense Payment which should have been paid for  such  Operating  Year,  Tenant  shall  pay  the  amount  of  such  deficiency  to  Landlord  within  thirty  (30)  days  after  receipt of the Annual Statement.                  D.     (i)     Each  Annual  Statement  shall  be  conclusive  and  binding  upon  Tenant  unless,  within one hundred fifty (150) days after receipt thereof, Tenant shall give Landlord notice (the “Operating Dispute  Notice”)  that  Tenant  disputes  the  accuracy  or  appropriateness  of  the  Annual  Statement,  specifying the  particular  respects in which the Annual Statement is claimed to be incorrect.  Tenant recognizes and agrees that Landlord’s                                                  -81-    NY 78267766v2 

 

books  and  records  (and  those  of  Landlord’s  agents)  with  respect  to  the  operation  of  the  7-21  Condominium  are  confidential, and that Tenant shall have no right to inspect the same except as otherwise provided in the immediately  following sentence.  Within said 150-day period, Tenant may request an appointment to examine Landlord’s books  and records with respect to Operating Expenses (such reviews, an “Audit”) in order to verify the accuracy of the  relevant Annual Statement, in which case Landlord shall allow Tenant’s employees or certified public accountant  (provided that such certified public accountant may not be paid on a contingent fee basis) to conduct such Audit in  New  York  City  during  Business  Hours,  within  ten  (10)  Business  Days  after  Landlord’s  receipt  of  said  request,  provided  that  Tenant’s  certified  public  accountant  shall  use commercially reasonable  efforts  to  minimize  any  interference to Landlord’s business operations during the course of such Audit.  Tenant shall not disclose (and shall  require Tenant’s certified public accountant not to disclose) to any third party (other than Tenant’s attorneys, who  shall in turn be required not to disclose) any information obtained in the course of such Audit, except if and to the  extent required by a court of competent jurisdiction.                           (ii)    If Tenant shall have timely delivered the Operating Dispute Notice to Landlord,  and  the  parties shall not  be  able  to  resolve  such  dispute  within  sixty  (60)  days  thereafter  (it  being  agreed  that  Landlord  shall  use  commercially  reasonable  efforts  to  promptly  respond  to  Tenant’s  good  faith  inquiries  in  connection with such disputed Annual Statement and (y) such 60-day period shall be extended by the number of  days that Landlord fails to respond to a good faith inquiry from Tenant within five (5) Business Days following each  such inquiry), then, provided that Tenant shall have theretofore paid to Landlord the full amount shown to be due to  Landlord  on  the  disputed  Annual  Statement,  either  party  may  refer  the  decision  of  the  issue to  a  reputable,  independent firm of certified public accountants selected by Landlord and reasonably acceptable to Tenant, and the  decision of such accountants shall be conclusive and binding upon the parties.   If the parties cannot agree on such  independent  firm  of  certified  public  accountants,  such  matter  can  be  submitted  to  Expedited  Arbitration  in  accordance  with  the  provisions  of Subsection  11.05B  above.   The  fees  and  expenses  of  the  certified  public  accountants involved  in  such  decision  shall  be  borne  by  the  unsuccessful  party  (and  if  both  parties  are  partially  unsuccessful,  the  accountants  shall  apportion  the  fees  and  expenses  between  the  parties  based  on  the  degree  of  success of each party).  Subject to the provisions of Section 19.08 below, if such dispute is resolved in Tenant’s  favor (whether  by  agreement  of  the  parties,  by  the  independent  accounting  firm,  Expedited  Arbitration,  or  otherwise), Landlord shall either reimburse Tenant for any overpayment or credit the amount of such overpayment  against the next monthly installment of the Estimated Payment or Operating Expense Payment or Fixed Rent, as  applicable, payable under this Lease (except that, at the expiration of the Lease Term, any such unpaid amounts shall  be paid by Landlord to Tenant, provided that Tenant shall not then be in default of any monetary or material non- monetary obligations under this Lease (but subject to the provisions of Section 19.08 below) within thirty (30) days  of  such  resolution.  If  such  dispute  is  resolved  in  Tenant’s  favor  (whether  by  agreement  of  the  parties,  by  the  independent accounting firm, Expedited Arbitration,, or otherwise) and it is determined or otherwise agreed to by  Landlord and Tenant that Tenant was overbilled on an Annual Statement by more than the Dispute Threshold, then  Landlord  shall  either  reimburse  Tenant  (within  thirty  (30) days  after  such  determination  or  agreement)  for all  of  Tenant’s reasonable out-of-pocket costs and expenses incurred in connection with the Audit and the resolution of the  dispute  (including  reasonable  out-of-pocket  fees  paid  or  payable  by  Tenant  to  any  attorneys,  accountants  or  consultants engaged solely in connection with such Audit and dispute); provided that all such fees shall not exceed  twenty percent (20%) of the Dispute Threshold in the aggregate) or credit the amount of such costs and expenses  against the next monthly installment of Fixed Rent payable under this Lease.  For purposes hereof, the “Dispute  Threshold” shall initially mean $75,000, which amount shall be increased at the end of each Operating Year during  the  Lease  Term  by  the  same  percentage  increase  (if any)  that  the  Operating  Expenses  for  such  Operating  Year  increased over the Operating Expenses for the immediately preceding Operating Year.           Section 19.05  Nothing contained in this Article 19 or any other provision of this Lease concerning the  payment  of  additional  rents  shall  be  construed  so  as  to  reduce  the  Fixed  Rent  below  the  amount  set  forth on  Schedule 1-2 attached hereto.          Section 19.06  If,  at  any  time  during  the  Lease  Term,  there  shall  be  (a)  a  reduction  of  the  Rentable  Square Footage of the Demised Premises or (b) an increase in the Rentable Square Footage of the Demised Premises  (including as a result of Tenant’s exercise of its Offer Space Option, Expansion Space Options and/or First Refusal  Right pursuant to the terms of this Lease), then (i) (A) Tenant’s Tax Share of Taxes thereafter payable by Tenant  under  Subsection  19.03,  and  (B)  Tenant’s  Operating  Share  of  Operating  Expenses  thereafter  payable  by  Tenant  under Subsection 19.04, shall, except as may otherwise be expressly agreed by the parties, be appropriately adjusted                                                  -82-    NY 78267766v2 

 

to reflect the then aggregate rentable square footage of the Demised Premises and (ii) all references in this Lease to  the “Demised Premises” and/or the “FTI Unit”, as applicable, shall be the space then being leased by Tenant in the  7-21 Condominium or the Building.          Section 19.07  Except  as  otherwise  expressly  provided  in  this  Article  19,  any  delay  or  failure  by  Landlord  to  render  any  statement  under  the  provisions  of  this  Article  19  shall  not  prejudice  Landlord’s  right  hereunder to render such statement for prior or subsequent periods. Except as otherwise expressly provided in this  Article 19, any delay or failure by Landlord in making any request or demand for any amount payable by Tenant  pursuant to the provisions of this Article 19 shall not constitute a waiver of, or in any way diminish, the continuing  obligation of Tenant to make such payment; provided however, that, notwithstanding anything to the contrary in this  Article 19, Tenant shall not be responsible for any Tenant’s Operating Payment attributable to any Operating Year,  or Tenant’s Tax Payment attributable to any Tax Year, that is first billed to Tenant more than two (2) calendar years  after the date of expiration of such Operating Year or Tax Year, as the case may be (unless the reason for the delay  in rendering a final bill relating to Operating Expenses or Taxes, as the case may be, is attributable to an act or  omission of the governmental (or quasi-governmental) authority or by any public utility company imposing such  bill, in which case the foregoing two-year limitation shall commence from the date on which Landlord receives such  item,  if  at  all).   Except  as  otherwise  provided  in  Subsection  19.04D  above,  all  statements  rendered  by  Landlord  pursuant to the provisions of this Article 19 shall be deemed final and conclusive as to Tenant, unless, within sixty  (60) days following rendition of any such statement, Tenant shall, in good faith and with specificity, notify Landlord  that  such  statement  contains  mathematical  error.  Subject  to  the second sentence  of  this Section  19.07,  the  obligations  of  Tenant  with  respect  to  any  payment  required  pursuant  to  the  provisions  of  this  Article  19,  and  Landlord’s  reimbursement  obligations  in  accordance  with  the  provisions  of  this  Article  19,  shall  survive  the  expiration or sooner termination of the Lease Term.          Section 19.08  At  any  time  Tenant  is  due  a  refund  or  credit  from  Landlord  in  accordance  with  the  foregoing provisions of this Article 19, if:                  A.      Tenant shall be in default (after Tenant shall have theretofore been given notice of any  such default) with respect to any of the monetary or material non-monetary obligations of Tenant under this Lease,  then Tenant’s right to receive such refund or credit shall be deemed suspended until such time as Tenant shall have  cured such default.  If Tenant shall have cured such default within the applicable cure period, then Tenant’s right to  receive  such  refund  or  credit  shall  be  deemed  reinstated  and  shall  be  credited  in  accordance  with  the  applicable  provisions of this Article 19, or                  B.      (I) an Event of Default has occurred by virtue of Tenant’s failure to cure a default within  the specified cure period pursuant to Subsection 19.08A above, or (II) an Event of Default shall have occurred and is  continuing, then, in either case, Tenant’s right to receive such refund or credit shall be deemed suspended until such  time as Tenant shall have cured such Event of Default and if (a) Tenant cures such Event of Default prior to the  EOD Cure Date, and Landlord shall not have terminated this Lease in accordance with Article 15 below by virtue of  such Event of Default, and (b) Tenant shall not be in default of any of Tenant’s other obligations under this Lease  after notice of such default shall have been given to Tenant in which event Subsection 19.08A above shall apply),  then, from and after the subject EOD Cure Date, Tenant’s right to receive such refund or credit shall be deemed  reinstated and shall be credited in accordance with the applicable provisions of this Article 19.                                             ARTICLE 20.                                                                                             ELECTRICITY          Section 20.01  Subject to the provisions of this Article 20, the provisions of Section 31.17 below and  other provisions of this Lease, Landlord shall furnish electricity for use in the Demised Premises twenty-four (24)  hours per day, seven (7) days per week through the core electrical closet serving the Demised Premises a capacity  (the “Existing Capacity”) equal to six (6) watts per useable square foot, demand load, exclusive of electricity serving  the base Building HVAC system.  Said electricity shall be furnished to the core electric closets located on each floor  of the Demised Premises.  Except as otherwise provided herein, Landlord shall not be liable to Tenant for any loss  or damage or expense which Tenant may sustain or incur if either the quantity or character of electric service shall  be changed or shall no longer be available or suitable for Tenant’s requirements, provided that same shall not have                                                  -83-    NY 78267766v2 

 

been caused by Landlord’s willful misconduct or negligence (except that, with respect to negligence, Landlord shall  continue  to  have  no  liability  to  Tenant,  if  such  negligence  shall  have  caused  damage  covered  by  the  “all  risk”  insurance  policy  carried,  or  required  to  be  carried,  by  Tenant  pursuant  to  Subsection  8.03B  above).   Nothing  contained in the immediately preceding sentence shall be construed to render Landlord liable for any consequential,  punitive or special damages, or to override the waiver of subrogation and release provisions of Section 8.04 hereof.   Tenant shall (at Tenant’s own cost and expense) furnish and install all replacement lighting tubes, lamps, bulbs and  ballasts required in the Demised Premises, unless Landlord (in Landlord’s discretion) elects to do so, in which case  Tenant  shall  pay,  within  thirty  (30)  days  after  request  therefor  and  as additional  rent,  to  Landlord  or  Landlord’s  designated contractor the then established commercially reasonable charges of Landlord or said contractor, as the  case may be, in connection therewith.            Section 20.02                    A.     Subject to the provisions of Section 20.03 below, Tenant’s consumption and demand of  all electricity made available to the Demised Premises (including electricity servicing any Tenant’s Supplemental  Air-Conditioning System and electricity servicing any supplemental restrooms (as opposed to core restrooms) in the  Demised  Premises,  Dining  Facility  (including  the  Dining  Equipment),  all  hot  water  heaters  servicing  such  bathrooms  and  Dining  Facility  (including  the  Dining  Equipment))  (collectively,  “Tenant  Electricity”)  shall  be  measured by one or more submeters (collectively, the “Submeter”) installed by Landlord at Landlord’s expense in  the  core  electric  closets  located  on  each  floor  of  the  Demised  Premises.   Notwithstanding  the  foregoing,  if,  in  connection  with  Tenant’s  Initial  Improvements  or  any  future  Alterations,  Tenant  shall  require  or  wish  to  install  additional electrical panels in said electric closet(s), Tenant shall be permitted to do so at Tenant’s own cost and  expense and provided that Tenant shall have obtained Landlord’s prior consent thereto and have otherwise complied  with  the  relevant  provisions  of  Article 5  above,  and  provided  further  that  any  additional  submeters  required  in  connection  therewith  shall  be  installed,  maintained,  repaired  and  replaced  by  Landlord,  at  Tenant’s  cost  and  expense.  All such additional submeters shall be of the same make and design as the Submeter (if commercially  available), and all references hereinafter to the “Submeter” shall be deemed to include said additional submeters.                  B.     Tenant  agrees  to  purchase  Tenant  Electricity  from  Landlord  or  Landlord’s  designated  agent at terms and rates equal to Landlord’s Electricity Cost (as such term is defined below), plus three percent (3%)  thereof, to reimburse Landlord for administrative and maintenance services in connection with supplying, measuring  and billing Tenant Electricity and for transmission and transformer losses (“Electricity Additional Rent”).  If more  than one submeter shall measure Tenant Electricity, then the service rendered through each such submeter shall be  totalized  and  billed  in  accordance  with  the  foregoing  rate  as  if  there  were  only  one  submeter  measuring  Tenant  Electricity.  Commencing on the Commencement Date (or a sooner date if Tenant accesses the Demised Premises  for any use other than the performance of Tenant’s Initial Installations), Tenant shall pay the Electricity Additional  Rent within thirty (30) days following the date that such bills shall have been rendered by Landlord therefor.                  C.     For purposes of this Article 20 and the other provisions of this Lease:                         (i)     The term “Landlord’s Electricity Cost” shall mean the average cost per kilowatt  hour and cost per kilowatt demand, to Landlord of purchasing electricity for the 7-21 Condominium, including fuel  adjustment charges (as determined for each month of the relevant period), rate adjustment charges, sales tax, and/or  any  other  factors  used  by  the  public  utility  furnishing  electric  service  to  the  7-21  Condominium  (the  “Public  Utility”) in computing its charges to Landlord, applied to the kilowatt hours of electricity and kilowatts of demand  purchased  by  Landlord during  a  given  period.  Landlord  reserves  the  right  to  change  electricity  providers  at  any  time.                         (ii)    The  term  “Electricity  Additional  Rent”  shall  have  the  meaning  set  forth  in  Subsection 20.02B above, and Landlord’s determination of such amounts shall be binding and conclusive on Tenant,  subject to the provisions of Subsection 20.03E below.                  D.     If the Submeter should fail to properly register or operate at any time during the Lease  Term  for  any  reason  whatsoever,  then,  Tenant shall  pay  for  electricity  provided  to  the  Demised  Premises in  accordance with the provisions of Section 20.03 below.                                                  -84-    NY 78267766v2 

 

       Section 20.03                    A.     Notwithstanding anything  to  the  contrary  contained  in  the  provisions  of  Section  20.02  above,  if  at  any  time  during  the  Lease  Term (I) the  Submeter  shall  not  then  be  operating  (it  being  agreed  that  Landlord shall use commercially reasonable efforts with reasonable diligence to repair such meter and, if reasonably  necessary, to replace such meter if such meter cannot reasonably be repaired, in either case as soon as reasonably  practicable after the Submeter stops working), or (II) if Landlord shall be compelled by the Public Utility or any  Legal Requirements (it being agreed that any such compulsion shall include Landlord’s inability to legally collect  from Tenant all of the costs incurred by Landlord for Tenant Electricity) to discontinue furnishing electricity to the  Demised  Premises  on  a  submetered  basis (such  discontinuance,  an  “Electricity  Discontinuance  Event”),  then  (subject  to  the  provisions of  Section  20.05  below)  Landlord  shall  furnish  electricity  to  the  Demised  Premises  as  follows.                   B.     For the purposes of this Section 20.03 and 20.05 below:                         (i)     The  term  “Base  Electric  Charge”  shall mean  the  amount  of  $422,520.00 per  annum (except during the period which shall begin on the Commencement Date and end on the day immediately  preceding the date on which Tenant shall first occupy the Demised Premises for the purpose of conducting Tenant’s  business  operations  therein,  during  which  period  the  term  “Base  Electric  Charge”  shall  mean  the  amount  of  $241,440.00  per  annum) ,  until  such  time  as  Tenant  has occupied  the  Demised  Premises  for  at  least  twelve (12)  months with a functioning Submeter, at which time the Base Electric Charge shall be equal to the cost of Tenant  Electricity  for  the  immediately  preceding  twelve  (12)  month  period  as  registered  on  the  Submeter  prior  to  the  Electricity Discontinuance Event.                           (ii)    The term “Electric Inclusion Factor” shall mean an amount, to be included as a  component of Fixed Rent, equal to the sum of the Base Electric Charge plus all increases thereto pursuant to the  provisions of this Article 20; it being understood and agreed that at all times the Electric Inclusion Factor shall not  be less or more than the amount computed by multiplying Landlord’s Electricity Cost by Tenant’s kilowatt hour and  kilowatt demand usage as determined by the estimate of Landlord’s Consultant.                  C.     Landlord and Tenant agree that, during any period in which electricity shall be furnished  to the Demised Premises on a “rent inclusion” basis, the annual Fixed Rent shall be increased by an amount equal to  the  Base  Electric  Charge,  as  the  same  may  be  adjusted  pursuant  to  the  provisions  of this  Article  20.   Tenant  acknowledges  and  agrees  that  the  Base  Electric  Charge  currently  represents  the  amount  initially  included  in  the  Electric Inclusion Factor to compensate Landlord for the electrical wiring and other installations necessary for, and  for  Landlord’s  obtaining  and  making  available  to  Tenant,  the  redistribution  of  electric  energy  to  the  Demised  Premises as an additional service, and that such Base Electric Charge component of the Electric Inclusion Factor is  subject to adjustment as provided herein based on Tenant’s actual consumption and/or demand of electricity and  Landlord’s cost therefor.                  D.     At any time, and from time to time after the Commencement Date (or a sooner date if  Tenant accesses the Demised Premises for any use other than the performance of Tenant’s Initial Installations), that  electricity shall be furnished to the Demised Premises on a “rent inclusion” basis, Landlord and Landlord’s agents  and consultants may survey the electrical fixtures, appliances and equipment located in or servicing the Demised  Premises and Tenant’s consumption and demand of electricity therein to (i) ascertain whether Tenant is complying  with  Tenant’s  obligations  under  this  Article  20,  and  (ii)  determine  whether  the  then  Electric  Inclusion  Factor  included in Fixed Rent is less or more than the Electric Inclusion Factor computed as a result of said survey, and to  adjust the Electric Inclusion Factor component of Fixed Rent in accordance with the following computations:                         (x)     In  the  case  of  the  first  electric survey,  if  the  cost  of  Tenant’s  electric  consumption  and/or  demand  shown  by  the  survey  shall (I) exceed  the  initial  Electric  Inclusion  Factor,  then  the  Electric Inclusion Factor component of the Fixed Rent shall be increased by the amount of such excess retroactive to  the beginning of the period when electricity shall be furnished to the Demised Premises on a “rent inclusion” basis,  or (II) be less than the Electric Inclusion Factor, then the Electric Inclusion Factor component of the Fixed Rent  shall be decreased to equal the cost of Tenant’s electric consumption and/or demand shown by the survey retroactive                                                  -85-    NY 78267766v2 

 

to the beginning of the period when electricity shall be furnished to the Demised Premises on a “rent inclusion”  basis; and                          (y)     In  the  event  of  the  second  and  subsequent  surveys,  if  the  cost  of  Tenant’s  electric consumption and/or demand shown by such survey shall (I) exceed the then Electric Inclusion Factor, then  such Electric Inclusion Factor component of Fixed Rent shall be increased by the amount of such excess, effective  as  of  the date  on  which  increases  in  the  connected  power  load  or  changes  in  electric  consumption  occurred  (as  determined  by  Landlord’s electrical  consultant  (“Landlord’s Consultant”)), or  (II)  be  less  than  the  then  Electric  Inclusion Factor, then such Electric Inclusion Factor component of Fixed Rent shall be decreased to equal the cost of  Tenant’s electric consumption and/or demand shown by the survey, effective as of the date on which decreases in  the connected power load or changes in electric consumption occurred (as determined by Landlord’s Consultant)                  E.     The initial amount of each such increase shall be paid by Tenant to Landlord within thirty  (30) days after Landlord furnishes Tenant with a statement thereof, and thereafter, such increase shall be added to  each of the monthly installments of Fixed Rent.  The cost of each survey made pursuant to Subsection 20.03D above  shall be borne equally by Landlord and Tenant.  The determination of Landlord’s Consultant as to any increase or  decrease, as the case may be, in the Fixed Rent based on such average monthly electric energy consumption and/or  demand shall be conclusive and binding upon the parties from and after the delivery of a copy of such determination  to Landlord and Tenant, unless, within thirty (30) days thereafter, Tenant shall dispute such determination by having  an independent reputable electrical consultant, selected and paid for by Tenant (“Tenant’s Consultant”), consult with  Landlord or Landlord’s Consultant as to said determination.  If the parties or their respective consultants shall agree  as to a resolution of said dispute, then such agreement shall be binding upon the parties, or if the difference between  them shall be five (5%) percent or less of the determination made by Landlord’s Consultant, then the determination  made by Landlord’s Consultant shall be binding upon the parties.  If Landlord’s Consultant and Tenant’s Consultant  shall not agree within the said five (5%) percent of each other, then Landlord’s Consultant and Tenant’s Consultant  shall jointly select a third duly qualified independent, reputable electrical consultant who shall determine the matter  and  whose  decision  shall be  binding  upon  both  parties  with  the  same  force  and  effect  as  if  a  non-appealable  judgment had been entered by a court of competent jurisdiction.  If Landlord’s Consultant and Tenant’s Consultant  shall  not  agree  upon  such  a  third  electrical  consultant,  the  matter  shall  be  submitted  to  Expedited  Arbitration  pursuant to Section 11.05B hereof.  Any charges of such third consultant shall be borne equally by both parties.   Notwithstanding  the  foregoing,  until  such  final  determination,  Tenant  shall  pay  Fixed  Rent  to Landlord  in  accordance with the determination made by Landlord’s Consultant.  After such final determination, the parties shall  promptly make adjustment for any deficiency owed by Tenant or any overage paid by Tenant.                   F.     If at any time during the Lease Term the electric rate charged by the Public Utility (the  “Electric Rate”) shall be increased or decreased by the Public Utility, then, effective as of the date of each such  increase or decrease in the Electric Rate, the Electric Inclusion Factor included in the Fixed Rent shall be increased  or  decreased in  proportion  to  such  change  in  the  Electric  Rate  (as  determined  by  Landlord’s  Consultant,  whose  determination  shall  be  binding  and  conclusive  upon  the  parties,  subject  to  the  provisions  of  Subsection  20.03E  above).  In no event, however, shall the Electric Rate be deemed to be reduced below the Electric Rate in effect as of  the Commencement Date for purposes of computing the Electric Inclusion Factor.  Tenant acknowledges that it is  anticipated  that  electric  rates,  charges,  fees  and/or other  costs,  as  well  as  methods  of or  rules  on  billing,  may be  changed  by  virtue  of  time-of-day  rates  or  other  methods  of  billing,  and  that  the  references  in  this  Article  20  to  changes in the Electric Rate are intended to include any and all such changes.                  G.     At Landlord’s request, the parties shall execute, acknowledge and deliver to each other a  supplemental agreement in such form as Landlord shall reasonably require to reflect each change in the Fixed Rent  under this Article 20, but each and every such change shall be effective as of the effective date described in the  provision under which such change is provided for, even if such agreement shall not be executed and delivered.          Section 20.04  Tenant’s  use  of  electricity  in  the  Demised  Premises  shall  not  at  any  time  exceed  the  Existing Capacity.  In order to ensure that the Existing Capacity is not exceeded and to avert possible adverse effect  upon the Building’s distribution of electricity via the Building’s electric system, if at any time the total connected  load of Tenant’s fixtures, appliances and equipment in the Demised Premises shall equal or exceed six (6) watts  demand  load  per  useable  square  foot  (exclusive  of  electricity  serving  the base  Building  HVAC  systems), then  Tenant shall not, without Landlord’s prior consent, make any Alterations to the then existing electric system of the                                                  -86-    NY 78267766v2 

 

Demised Premises. During the Lease Term, Tenant may distribute the electric capacity within the Demised Premises  as Tenant deems necessary or desirable, provided (i) Tenant complies with the provisions of Article 5 above, and (ii)  any such changes shall constitute Specialty Alterations.          Section 20.05                    A.     Landlord reserves the right to discontinue furnishing electricity to Tenant in the Demised  Premises at any time upon not less than ninety (90) days’ notice to Tenant (or promptly following such later date  upon  which Landlord  receives  notice thereof),  but  only  if  compelled  by  the  Public  Utility  or  any  Legal  Requirements, and provided that Landlord also simultaneously terminates the furnishing thereof to all other office  tenants  in  the  7-21  Condominium.  If  Tenant  shall  immediately  commence  and  diligently  pursue  to  completion  arrangements to obtain electricity from the Public Utility upon receipt of Landlord's notice that Landlord intends to  discontinue  furnishing  electricity  to  the  Demised  Premises,  then  Landlord,  to  the  extent  permitted  by  Legal  Requirements, shall postpone such discontinuance for a sufficient amount of time so as to allow Tenant to obtain  electricity directly from the Public Utility.  If Landlord exercises such right, this Lease shall continue in full force  and effect and shall be unaffected thereby, except that, from and after the effective date of such discontinuance, (i)  Landlord shall not be obligated to furnish electricity to Tenant (and, if electricity shall, immediately prior to such  discontinuance, have been furnished to the Demised Premises on a “rent inclusion” basis, the Fixed Rent payable  under  this  Lease  shall  be  reduced by  an amount  equal  to the  Electric  Inclusion  Factor component  of  such  Fixed  Rent),  and  (ii)  Tenant  shall  be  required  to  submit  to  Landlord  electricity  consumption  data  in  a  format  deemed  reasonably acceptable by Landlord.                   B.     If Landlord so discontinues furnishing electricity to Tenant, then Tenant shall, at Tenant’s  own cost and expense, promptly arrange to obtain electricity directly from the Public Utility.  Such electricity may  be furnished to Tenant by means of the then existing Building System feeders, risers and wiring, but only if and to  the extent that Landlord, on a non-discriminatory basis with respect to Tenant, determines the same to be available,  suitable  and  safe  for  such  purpose.   All  meters  and  additional  panel  boards,  feeders,  risers,  wiring  and  other  conductors and equipment which may be required to obtain electricity directly from such Public Utility shall be:   (x) if located entirely within the Demised Premises, installed and connected by Tenant, at Tenant’s own cost and  expense, but only after having received Landlord’s prior consent thereto in accordance with the provisions of Article  5 hereof if required, and Tenant shall thereafter maintain, repair and replace the same, as necessary, at Tenant’s own  cost and expense; and (y) if located wholly or in part outside of the Demised Premises, installed, connected and  thereafter maintained, repaired and replaced, as necessary, by Landlord, at Tenant’s reasonable cost and expense,  which shall be paid as additional rent within thirty (30) days after the rendition of a bill therefor accompanied by  reasonable supporting documentation.  Only rigid conduit will be allowed in connection with any such installation.          Section 20.06  If, pursuant to any Legal Requirement, the amount which Landlord shall be permitted to  charge Tenant for the purchase of electricity pursuant to this Article 20 shall be reduced below that which Landlord  would otherwise be entitled to charge Tenant hereunder, then Tenant shall pay the difference between such amounts  to Landlord as additional rent within thirty (30) days after being billed therefor by Landlord, as compensation for the  use of the electrical distribution system in the Building.  If any tax shall be imposed on Landlord by any federal,  state or municipal authority with respect to electricity furnished to Tenant, then Tenant’s pro rata share of such taxes  shall be reimbursed by Tenant to Landlord as additional rent within thirty (30) days after being billed therefor.          Section 20.07  If the Public Utility or any Legal Requirement shall institute or require a change in the  manner in which electricity is to be furnished or paid for, and such change reasonably necessitates an appropriate  modification  of  this  Article  20,  Tenant  shall  promptly  execute  and  deliver  to  Landlord  an  instrument  reasonably  required by Landlord that sets forth such modification; provided, however, that in no event shall the Fixed Rent be  reduced to an amount below the amount thereof stated on Schedule 1-2 attached hereto.  Tenant agrees to fully and  timely comply with all rules and regulations of the Public Utility applicable to Tenant or the Demised Premises.          Section 20.08  In  the  event  that,  pursuant  to  any  of  the  provisions  of  this  Article  20,  any  initial  determinations, statements or estimates are made by or on behalf of Landlord (whether such initial determinations,  statements or estimates are subject to dispute or not pursuant to the provisions of this Article 20), Tenant shall pay to  Landlord the amount(s) set forth on such initial determinations, statements or estimates, as the case may be, until                                                  -87-    NY 78267766v2 

 

subsequent determinations, statements or estimates are rendered, at which time the parties shall make adjustment for  any deficiency owed by Tenant, or any overage paid by Tenant.          Section 20.09  Notwithstanding any provisions of this Article 20 and regardless of the manner of service  of electricity to the Demised Premises (whether by rent inclusion or submetering, but excluding a situation in which  Tenant  shall  be  obtaining  electricity  directly  from  the  Public  Utility  pursuant  to  the  provisions  of  Section 20.05  above), in no event shall the cost to Tenant for electricity to the Demised Premises be less than one hundred three  percent (103%) of Landlord’s Electricity Cost.           Section 20.10  Any payments due hereunder for less than a calendar year at the commencement or end  of the Lease Term shall be equitably prorated.  Any delay or failure by Landlord to render any bills or statements  under  the  provisions  of  this  Article  20  shall  not  prejudice  Landlord’s  right  thereunder  to  render  such  bills  or  statements for prior or subsequent periods.  Any delay or failure by Landlord in making any request or demand for  any amount payable by Tenant pursuant to the provisions of this Article 20 shall not constitute a waiver of, or in any  way diminish, the continuing obligation of Tenant to make such payment.  The obligations of Tenant with respect to  any  payment  or  increase  pursuant  to  the  provisions  of  this  Article 20  shall  survive  the  expiration  or  sooner  termination of the Lease Term.                                             ARTICLE 21.                                                                                                BROKER          Section 21.01  Tenant  represents  and  warrants  to  Landlord  that  Tenant  has  not  employed,  dealt  or  negotiated  with  any  broker  (other  than  the  Designated  Broker)  in  connection  with  this  Lease,  and  Tenant  shall  indemnify,  protect,  defend  and  hold each Landlord Indemnified  Party harmless  from  and  against  any  and  all  liability, damage, cost and expense (including reasonable attorneys’ fees and disbursements) arising out of any claim  for  a  fee  or  commission  by  any  broker  (other  than  the  Designated  Broker)  or  other party  who  communicated  or  claims to have communicated with Tenant in connection with this Lease.  Landlord agrees to pay the Designated  Broker’s  commission  in  accordance  with  separate  agreements  between  Landlord  and  the  Designated  Broker.  Landlord represents to Tenant that Landlord has not employed, dealt or negotiated with any broker (other than the  Designated  Broker)  in  connection  with  this  Lease;  it  being  understood  and  agreed  that  mailings  by  Landlord  to  brokers  with  respect  to  Landlord’s  desire  to  lease  the  Demised  Premises  shall  not  be  deemed  a  breach  of  the  foregoing  representation.  Landlord  shall  indemnify  and  hold each Tenant Indemnified  Party harmless  from  and  against any and all liability, damage, cost and expense (including reasonable attorneys’ fees and disbursements) (1)  arising out of claims for brokerage commissions or similar fees claimed by (a) the Designated Broker, or (b) any  other broker who communicated or claims to have communicated only with Landlord (i.e., and not with Tenant), in  each  case,  with  respect  to  the  leasing  of  the  Demised  Premises  to  Tenant,  and (2) in  the  event  that  Tenant  is  obligated to indemnify the Board pursuant to the provisions of Article 7 of the Board Consent due to any actions for  which Landlord is obligated to indemnify Tenant pursuant to this Article 21 (but only to the extent set forth in this  Article 21).                                             ARTICLE 22.                                                                                SUBORDINATION; NON-DISTURBANCE          Section 22.01  Subject to the provisions of Section 22.06 below, this Lease and all of Tenant’s rights  hereunder are and shall be subject and subordinate to (i) the priority of every Underlying Lease, the rights of the  Overlandlord  or  Overlandlords  under  each  Underlying  Lease,  (ii)  the  Condominium  Documents  and  any  other  condominium plan or declaration now or hereafter affecting the Building, and any other instruments or rules and  regulations promulgated in connection therewith, (iii) any reciprocal easement agreements or any other easements  now  or  hereafter  affecting  the  Building,  and  (iv)  the  lien  of  any  Mortgage  now  or  hereafter  affecting  the  real  property of which the Demised Premises form a part or any part or parts of such real property, or such real property  and other property, or any Underlying Lease, and to each advance made or hereafter to be made under any such  Mortgage  and  to  all  renewals,  modifications,  consolidations,  replacements,  substitutions,  spreaders, additions  and  extensions of any such Underlying Lease and/or Mortgages.  The subordination provisions herein contained shall be  self-operative, and no further instrument of subordination shall be required.  Landlord reserves the right, by notice to                                                  -88-    NY 78267766v2 

 

Tenant, to  determine  that  the  foregoing  provisions  shall  not  apply  to  any  or  all  Mortgages  then  being  and/or  thereafter to be made.  In confirmation of said subordination, Tenant shall execute and deliver promptly a reasonable  instrument that Landlord or that Landlord’s successors-in-interest may reasonably request.            Section 22.02  This Lease may be conditionally or otherwise assigned as collateral security by Landlord  to a Mortgagee, which assignment may provide that, without Mortgagee’s prior consent, Tenant and Landlord shall  not (i) pay or accept the rent or additional rent under the terms of this Lease for more than one month in advance of  the due date of such rent or additional rent, or (ii) subject to the terms of any SNDA then in effect, enter into an  agreement to amend or modify this Lease, or (iii) voluntarily surrender the Demised Premises (other than pursuant  to the express terms of this Lease), terminate this Lease (other than pursuant to the express terms of this Lease) or  accelerate  the  Lease  Term  without  cause,  or (iv)  assign  this  Lease  or  sublet  the  Demised  Premises  or  any  part  thereof except in the manner provided under the terms of this Lease.  Subject to the terms of any applicable SNDA,  any  agreement  by  Landlord  to  make,  perform  or  furnish  any  capital  improvements  or  services  not  related  to  the  possession  or  use  of  the  Demised  Premises  by  Tenant  shall  not  be  binding  on  any  Mortgagee  in  the  event  of  foreclosure or in the event that a Mortgagee enters upon the Demised Premises pursuant to any security instrument  in connection with the mortgage loan.  Regardless of whether and to what extent Landlord may have an obligation in  connection  therewith,  until  a  Mortgagee  or  such  Mortgagee’s  successor  (as  the  case  may  be)  shall  take  actual  possession  of  the  Unit(s)  in  which  the  Demised  Premises  are  located,  such  Mortgagee  and  such  Mortgagee’s  successor  shall  not  be  responsible  for  any  improvements,  covenants,  contractual  obligations  or  services  which  Landlord has agreed to make, furnish or perform for Tenant under the terms of this Lease, or for the control, care or  management of the Unit(s) in which the Demised Premises are located or any waste committed on the Unit(s) in  which the Demised Premises are located by any tenant, or for any dangerous or defective condition of the Unit(s) in  which the Demised Premises are located resulting in loss or injury or death to any tenant, licensee or stranger.            Section 22.03  Tenant agrees that, unless a Mortgagee shall elect otherwise in the case of a foreclosure  of such Mortgage, or unless the Overlandlord of an Underlying Lease to which this Lease is subordinate shall elect  otherwise  in  the  case  of  a  cancellation  or  a  termination  of  such  Underlying  Lease,  neither  the  cancellation  nor  termination of any Underlying Lease, nor any foreclosure of a Mortgage affecting the Unit(s) in which the Demised  Premises  are  located, or an  Underlying  Lease  of the  Demised  Premises,  nor  the  institution  of  any  suit,  action,  summary  or  other  proceeding  against  Landlord  herein  or  any  successor  landlord,  shall  by  operation of  law  or  otherwise result in cancellation or termination of this Lease or the obligations of Tenant hereunder, and upon the  request of the Overlandlord of such Underlying Lease, or the holder of such Mortgage, or the purchaser at a sale in  foreclosure  of such  Mortgage,  or  other  person  who  shall  succeed  to  the  interests  of  Landlord  (which  such  Overlandlord,  holder,  purchaser  or  other  person  is  hereafter  in  this  Section  referred  to  as  “such  successor-in- interest”),  Tenant  covenants  and  agrees  to  attorn to  such  successor-in-interest  and  recognize  such  successor-in- interest as the landlord under this Lease, subject to the terms of any applicable SNDA.  Tenant agrees to execute any  instrument containing commercially reasonable terms in writing reasonably required by such successor-in-interest  whereby Tenant attorns to such successor-in-interest.  Subject to the terms of any applicable SNDA, Tenant further  waives the provisions of any statute or rule of law now or hereafter in effect which may give or purport to give  Tenant any right of election to terminate this Lease or to surrender possession of the Demised Premises in the event  any  Underlying  Lease  terminates  or  any  such Mortgage  is  foreclosed  or  any  such  proceeding  is  brought  by  any  Overlandlord or the holder of any such Mortgage.          Section 22.04  In  the  event  of  the  occurrence  of  any  act  or  omission  by  Landlord  which  would  give  Tenant the right to terminate this Lease or claim a partial or total eviction, or make any claim against Landlord for  the payment of money, Tenant shall not exercise such right until Tenant shall have given notice of such occurrence  to (i) Landlord, (ii) the Board and (iii) each Mortgagee and the Overlandlord of any Underlying Lease, as to whom,  and to the last address to which, Tenant has been instructed to give such notice, and subject to the terms of any  SNDA, a  reasonable  period  for  remedying  such  act  or  omission  shall  have  elapsed  following  the  giving  of  such  notices, during which such parties or any of them with reasonable diligence following the giving of such notice,  have not commenced and continued to remedy such act or omission or to cause the same to be remedied.  Nothing  herein contained shall be deemed to create any rights in Tenant not specifically granted in this Lease or under any  applicable  provision  of  law,  nor  to  obligate  any  such  Mortgagee  or  Overlandlord  to  remedy  any  such  act  or  omission, subject to the terms of any applicable SNDA.  In the event of any inconsistency between the terms of this  Article 22 and any SNDA, the terms of such SNDA shall govern with respect to the Mortgagee or Overlandlord  thereunder.                                                  -89-    NY 78267766v2 

 

       Section 22.05  If a Mortgagee or prospective mortgagee shall request modifications to this Lease, Tenant  shall not unreasonably withhold or delay Tenant’s consent thereto, provided that such modifications shall not (a)  increase the monetary obligations of Tenant hereunder, (b) increase the non-monetary obligations, or decrease the  rights, of Tenant hereunder (other than to a de minimis extent), or (c) adversely affect the leasehold interest hereby  created (other than to a de minimis extent).  Subject to the terms of any SNDA, in no event shall a requirement that  the consent of any such Mortgagee or prospective mortgagee be given for any modification of this Lease, or for any  assignment or sublease, be deemed to adversely affect the leasehold interest hereby created.          Section 22.06                    A.     On  the  Effective  Date,  Landlord  shall  deliver  to  Tenant,  in  recordable  form,  a  “subordination, non-disturbance and  attornment” agreement from  the Existing  Lender (the  “Mortgagee SNDA”)  substantially in the form attached hereto as Exhibit “J”, executed by the Existing Lender; it being agreed, however,  that the Existing Lender may require that such Mortgagee SNDA be first executed and delivered by Tenant to the  Existing Lender and, subject to the following sentence, then be executed and delivered by Existing Lender to Tenant  after the Effective Date. If Landlord shall fail to deliver to Tenant such fully executed original Mortgagee SNDA  within twenty (20) days after the Effective Date, then as Tenant’s sole and exclusive remedy, Tenant shall have the  right to terminate this Lease by delivering notice to Landlord thereof.  In the event that Tenant terminates this Lease  as aforesaid, (i) this Lease shall be deemed canceled and terminated effective as of the Termination Option Date,  and (ii) except with respect to obligations expressly stated to survive the expiration or sooner termination of this  Lease, neither party shall have any further obligations to the other under this Lease.                    B.     On the Effective Date, Landlord shall deliver to Tenant, in recordable form, an SNDA  from the Board as provided in Article 18 of the Declaration (the “Board SNDA”) substantially in the form attached  hereto as Exhibit “I”, executed by the Board; it being agreed, however, that the Board may require that such Board  SNDA  be  first  executed  and  delivered  by Tenant to  the  Board and,  subject  to  the  following  sentence,  then  be  executed and delivered by the Board to Tenant after the Effective Date.  If Landlord shall fail to deliver to Tenant  such fully executed original Board SNDA within twenty (20) days after the Effective Date, then as Tenant’s sole and  exclusive remedy, Tenant shall have the right to terminate this Lease by delivering notice to Landlord thereof.  In  the  event  that  Tenant terminates  this  Lease as  aforesaid,  (i)  this  Lease  shall  be  deemed  canceled  and  terminated  effective as of the Termination Option Date, and (ii) except with respect to obligations expressly stated to survive  the expiration or sooner termination of this Lease, neither party shall have any further obligations to the other under  this Lease.                  C.     Notwithstanding anything to the contrary contained in this Article 22, this Lease shall not  be subject or subordinate to (I) the lien of any hereafter placed Mortgage or (II) the priority of any hereafter placed  Underlying  Lease,  unless  Tenant  shall  receive  a  “subordination, non-disturbance and  attornment”  agreement (an  “SNDA”) from the holder of any Mortgage hereafter encumbering the Unit(s) in which the Demised Premises are  located or from the Overlandlord of any Underlying Lease hereafter affecting the 7-21 Condominium, in such form  as  may  be  required  by  any  such  Mortgagee  or  Overlandlord  (provided  that  the  same  shall  be  in  a  commercially  reasonable form), which shall provide in substance that, so long as Tenant is not in default with respect to any of  Tenant’s monetary  or  material  non-monetary obligations  under  this  Lease  after  notice  and  the  expiration  of  the  applicable cure period: (a) Tenant shall not be joined as a party defendant (unless required by applicable law) (i) in  any action or proceeding which may be instituted or taken by any Overlandlord for the purpose of enforcing any  rights given to such Overlandlord under its Underlying Lease (including terminating the Underlying Lease by reason  of  any  default  thereunder),  or  (ii)  in  any  foreclosure  action  or other proceeding  which  may  be  instituted  by  any  Mortgagee, and (b) Tenant shall not be evicted from the Demised Premises, nor shall Tenant’s leasehold estate or  right  to  possession  of  the  Demised  Premises  be  terminated  or  disturbed,  by  reason  of  any  default  under  any  Underlying Lease or Mortgage, or by reason of any foreclosure of any Mortgage or termination of any Underlying  Lease.  For  the  avoidance  of  doubt,  a  “non-disturbance” agreement  that  is  substantially  similar  in  terms  of  the  protections,  rights  and obligations  of  Tenant  to  the  Mortgagee  SNDA  shall  be  deemed  to  be  a  commercially  reasonable form (it being agreed that a non-disturbance agreement from a landlord under an Underlying Lease may,  however, be appropriately adapted to address that it applies to an Underlying Lease (as opposed to a Mortgage),  namely  that  if  an  Underlying  Lease  terminates,  then  the  Overlandlord will  not  evict  Tenant,  disturb  Tenant's  possession under the Lease, or terminate or disturb Tenant’s leasehold estate or rights hereunder, and will recognize  Tenant as the direct tenant of such Overlandlord on the same terms and conditions as are contained in this Lease, but                                                  -90-    NY 78267766v2 

 

shall otherwise be required to be substantially similar to the Mortgagee SNDA in terms of the protections, rights and  obligations of Tenant thereunder).  Any non-disturbance agreement may also provide that Tenant will, at the option  of any  Mortgagee  or  the  Overlandlord  under  any  Underlying  Lease,  either  (x)  attorn  to  such  Mortgagee  or  Overlandlord and perform for such Mortgagee’s or Overlandlord’s benefit all of the terms, covenants and conditions  to  be  performed  by  Tenant  under  this  Lease,  or  (y)  enter  into  a  new  lease  with  the  Overlandlord  under  the  Underlying Lease or any Mortgagee or their respective successors or assigns for the balance of the Lease Term on  the same terms and conditions as are contained in this Lease.  If Tenant shall not execute and deliver to a Mortgagee  or  Overlandlord  (as  the  case  may  be)  such SNDA,  then  this  Lease  and  all  of  Tenant’s  rights  hereunder  shall  nonetheless  be  subject  and  subordinate  to  the  relevant  Mortgage  or  Underlying  Lease.   Landlord  shall have no  liability to Tenant if Tenant shall not receive an SNDA, nor shall the same relieve or release Tenant from any of the  obligations of Tenant under this Lease, but if Landlord fails to deliver an SNDA (including the Mortgagee SNDA)  to Tenant, then this Lease shall not be subject or subordinate to such Mortgage or Underlying Lease, except as set  forth in the preceding sentence.  Landlord hereby represents, as of the Effective Date, that (i) there is no Mortgage  other than the Mortgage made to Landlord by the Existing Lender, and (ii) there is no Underlying Lease.                                             ARTICLE 23.                                                                         ESTOPPEL CERTIFICATE; DELIVERY OF FINANCIALS          Section 23.01                    A.      At any time and from time to time during the Lease Term, Tenant shall, within fifteen  (15)  days  after  request  by  Landlord,  execute,  acknowledge and  deliver  to  Landlord  a  statement  addressed  to  Landlord and/or to such other party(ies) as Landlord may designate (the “Estoppel Certificate”):  (i) certifying that  this Lease is unmodified and in full force and effect (or, if there have been modifications, that the same is in full  force  and  effect  as  modified  and  stating  the  modifications),  (ii)  stating  the  dates  to  which  the  Fixed  Rent  and  additional rent have been paid (or that no Fixed Rent and/or additional charges have yet become payable or been  paid), (iii) stating whether or not, to the best knowledge of the signer of such certificate, there exists any default by  Landlord in the performance of any covenant, agreement, term, provision or condition contained in this Lease, and,  if  so,  specifying  each  such  default  of  which  the  signer  may  have  knowledge,  and  (iv)  setting  forth  such  other  information  as  Landlord  may  reasonably  request  concerning  this  Lease;  it  being  intended  that  any  Estoppel  Certificate delivered pursuant to this Section 23.01 may be relied upon by Landlord or by a purchaser of Landlord’s  interest,  and  by  any  Mortgagee,  or  prospective  mortgagee  affecting  the  FTI  Units,  and  by  any  Overlandlord  or  prospective  Overlandlord  under  any  Underlying  Lease, and  by any  mortgagee  or  prospective  mortgagee  of  any  Underlying Lease.                    B.     If Tenant fails to deliver the Estoppel Certificate within fifteen (15) days after Landlord’s  request therefor, such failure shall constitute a waiver by Tenant of any defaults on Landlord’s part under this Lease  and a waiver of enforceability by Tenant of any modification of this Lease, as against any person above described  entitled to rely upon such statement, but without limiting any rights and remedies available to Landlord by reason of  such failure., provided that Landlord shall have delivered to Tenant an additional copy of the requested Estoppel  Certificate together with a notice bearing the following legend typed in bold, capital letters at the top:  “IF TENANT  SHALL  FAIL  TO  RETURN  THIS  ESTOPPEL  CERTIFICATE  TO  LANDLORD  WITHIN  SEVEN  (7)  DAYS  AFTER TENANT’S RECEIPT OF THIS SECOND REQUEST THEREFOR, TENANT SHALL HAVE WAIVED  ANY  DEFAULTS  ON  LANDLORD’S  PART  UNDER  THE  LEASE  AND  SUCH  FAILURE  SHALL  CONSTITUTE A WAIVER OF ENFORCEABILITY BY TENANT OF ANY MODIFICATION OF THE LEASE,  AS AGAINST ANY PERSON ABOVE DESCRIBED ENTITLED TO RELY UPON SUCH STATEMENT, BUT  WITHOUT  LIMITING  ANY  RIGHTS  AND  REMEDIES  AVAILABLE  TO  LANDLORD  BY  REASON  OF  SUCH FAILURE.”   Nothing contained herein shall limit Tenant’s rights with respect to any breach by Landlord of  its obligations under this Lease to the extent such breach continues beyond the deemed delivery date of the Estoppel  Certificate.          Section 23.02  Landlord agrees, in connection with any proposed assignment of this Lease or subletting  of the Demised Premises by Tenant, or in connection with a Tenant financing or any other request by Tenant (which  other request may not be made more than two (2) times in any calendar year), upon not less than fifteen (15) days  prior notice by Tenant, to execute, acknowledge and deliver to Tenant a statement addressed to Tenant and/or the                                                  -91-    NY 78267766v2 

 

party designated by Tenant, as the case may be:  (i) certifying that this Lease is then in full force and effect and has  not been modified (or if modified, that the same is in full force and effect as modified and stating the modifications),  (ii) setting forth the dates to which the Fixed Rent and additional rent have been paid (or that no Fixed Rent and/or  additional  charges  have yet  become  payable or been paid), (iii)  stating  whether or not, to  the best  knowledge of  Landlord, Tenant is in default under the Lease, and, if Tenant is in default, identifying each such default of which  Landlord has knowledge (if any), and (iv) setting forth such other information concerning this Lease as Tenant may  reasonably request; it being intended that any such statement delivered pursuant to this Section 23.02 may be relied  upon by Tenant or by such Tenant designee.  Landlord agrees, upon request from Tenant, to request an estoppel  certificate from the Board in accordance with Article 29 of the Declaration.  Tenant shall pay all of Landlord’s and  the  Board’s reasonable  and actual out-of-pocket  costs (including reasonable attorneys’  fees  and  disbursements)  incurred in connection with such request and the Board’s delivery of such estoppel certificate.          Section 23.03  Upon Landlord's request (but not more than twice in any calendar year during the Lease  Term), Tenant shall, within ten (10) Business Days from the date of such request, deliver to Landlord a copy of  Tenant’s  most  recent  audited  financial  statement  or,  if  no  audited  financial  statement  is  available,  such  financial  information which customarily and reasonably is required to determine the financial condition of Tenant, provided  (i)  such  request  is  in  connection  with  a  prospective  sale,  financing  or  refinancing  of  the  7-21  Condominium  or  requested by an Overlandlord or Mortgagee and (ii) Landlord and any third party that shall receive a copy of such  financial statement (such parties to be limited solely to prospective buyers or current or prospective lenders and their  respective attorneys, accountants and consultants) shall execute and deliver a confidentiality agreement in form and  in  substance  reasonably  acceptable  to  Landlord  and  Tenant  prior  to  delivery  of  such  financial  statement.   Notwithstanding the foregoing, provided Tenant is a publicly-traded entity which provides regular public financial  disclosures in accordance with regulations promulgated by the Securities and Exchange Commission, and Tenant  complies  with  such  all  such  regulations  with  respect  to  the  filing  of  its  financial  reports, Landlord  shall  rely  exclusively  on  such  public  disclosures  and  Tenant  shall  not  be  required  to  provide  any  additional  financial  information to Landlord for any reason whatsoever.                                             ARTICLE 24.                                                                                         LEGAL PROCEEDINGS          Section 24.01  If  Tenant  or  Landlord  shall  bring  any  action  or  suit  for  any  relief  against  the  other,  declaratory or otherwise, arising out of this Lease or Tenant’s occupancy of the Demised Premises, the parties hereto  agree to and hereby waive any right to a trial by jury.          Section 24.02  This Lease shall be governed in all respects by the laws of the State of New York, as the  same may from time to time exist, without giving effect to the principles of conflicts of laws.  Tenant (on behalf of  Tenant  and any  assignees,  subtenant  or  other  occupants  of  Tenant) and Landlord  hereby  expressly  consent  to  jurisdiction in the Civil Court of the City of New York and the Supreme Court of the State of New York in any  action or proceeding arising out of this Lease, and each such party agrees that venue shall lie in New York County.   Tenant on behalf of Tenant and any assignees, subtenant or other occupants of Tenant) further waives any and all  rights to commence any such action or proceeding against Landlord before any other court.  If Tenant at any time  during the Lease Term shall not be a New York partnership or a New York corporation or a foreign corporation  qualified to do business in New York State, Tenant shall deliver notice to Landlord designating an agent located in  New York County (together with such agent’s address) for service under the laws of the State of New York for the  entry of a personal judgment against Tenant.  Tenant, by notice to Landlord, shall have the right to change Tenant’s  designation of such agent, provided that at all times there shall be an agent in New York County for such service.  In  the event of any revocation (or attempted revocation) by Tenant of such agency, the same shall be void and have no  force or effect unless and until a new agent shall have been designated for service and Tenant shall have notified  Landlord thereof (together with such new agent’s address).  If any such agency designation shall require a filing in  the office of the Clerk of the County of New York, the same shall be promptly accomplished by Tenant, at Tenant’s  expense, and a certified copy thereof shall thereupon be transmitted by Tenant to Landlord.                                                   -92-    NY 78267766v2 

 

                                          ARTICLE 25.                                                                                              SURRENDER          Section 25.01  Tenant  shall,  at  the  expiration  or  sooner  termination  of  the  Lease  Term  (either, as  applicable, being referred to herein as the “Surrender Date”), quit and surrender to Landlord the Demised Premises,  broom clean and in the condition required under this Lease, reasonable wear and tear and damage by fire or other  casualty, and damage for which Tenant is not responsible under this Lease excepted, and shall deliver all keys to and  for the Demised Premises to Landlord, and shall inform Landlord of all combinations of locks, safes and vaults, if  any,  located (and permitted  by  Landlord  to  remain)  in  the  Demised  Premises.   Except  as  otherwise  expressly  provided elsewhere in this Lease, Tenant shall, on or before the Surrender Date, remove all of Tenant’s Movable  Property and any Specialty Alterations from the Demised Premises and shall promptly repair (in accordance with the  applicable  provisions of  Article  5  above)  any damage  to  the  Demised  Premises  caused  by  the  installation  and/or  removal of such property.          Section 25.02                    A.     If the Demised Premises shall not be surrendered on the Surrender Date, Tenant shall pay  to  Landlord  as  use  and  occupancy for  each  month  or  fraction  thereof during  which  Tenant fails  to  surrender  the  Demised  Premises to  Landlord  in  accordance  with  the  provisions  of  Section  25.01  hereof  from  and  after the  Surrender Date (the “Continued Occupancy Period”) an amount of money (the “Occupancy Payment”) equal to (i)  for the first sixty (60) days immediately following the Surrender Date, one hundred twenty-five (125%) percent of  one twelfth (1/12) of the Fixed Rent and Recurring Additional Rent due or payable by Tenant during the twelve (12)  months  immediately  preceding  the  Surrender  Date,  and  (ii)  from  and  after  the  sixty-first  (61st) day immediately  following  the  Surrender  Date,  one  hundred  fifty  (150%)  percent  of  one  twelfth  (1/12)  of  the  Fixed  Rent  and  Recurring  Additional  Rent  due  or  payable  by  Tenant  during  the  twelve  (12)  months  immediately  preceding  the  Surrender Date.  Tenant shall make the Occupancy Payment, without notice or previous demand therefor, on the  first day of each and every month during the Continued Occupancy Period.                   B.     In  addition  to  making  all  required  Occupancy  Payments,  Tenant  shall,  in  the  event  of  Tenant’s  failure  to surrender  the  Demised  Premises  on  the Damages Date  as  and  in  the  manner  aforesaid,  also  indemnify and hold Landlord harmless from and against any and all cost, expense, damage, claim, loss or liability  resulting  from  any  delay  or  failure  by  Tenant  in so surrendering  the  Demised  Premises,  including  (i)  any  consequential damages suffered by Landlord from any claims made by any succeeding occupant founded on such  delay or failure, and (ii) any and all reasonable attorneys’ fees, disbursements and court costs incurred by Landlord  in connection with any of the foregoing.  For the purposes hereof, the term “Damages Date” shall mean the one  hundred eightieth (180th) day after the Surrender Date.                   C.     The receipt and acceptance by Landlord of all or any portion of the Occupancy Payment  shall not be deemed a waiver or acceptance by Landlord of Tenant’s breach of Tenant’s covenants and agreements  under this Article 25, or a waiver by Landlord of Landlord’s right to institute any summary holdover proceedings  against Tenant, or a waiver by Landlord of Landlord’s rights to enforce any of Landlord’s rights, or pursue any of  Landlord’s remedies against Tenant in such event as provided for in this Lease or under Legal Requirements.          Section 25.03  Except with respect to a renewal of the Lease Term in accordance with the provisions of  Article 34 hereof, it is expressly understood and agreed that there can be no extension of the Lease Term unless said  extension is reduced to writing and agreed to by Landlord.  No verbal statement or unsigned writing shall be deemed  to  extend  the  Lease  Term,  and  Tenant  hereby  agrees  that  any  improvements  Tenant  shall  make  to  the  Demised  Premises in reliance upon any extension of the Lease Term given verbally or by an unsigned writing shall be at  Tenant’s peril.          Section 25.04  Intentionally omitted.          Section 25.05  Tenant  expressly  waives,  for  itself  and  for  any  person  claiming  by,  through  or  under  Tenant, any rights which Tenant or any such persons may have under the provisions of Section 2201 of the New                                                  -93-    NY 78267766v2 

 

York Civil Practice Law and Rules, and of any successor law of like import then in force, in connection with any  summary holdover proceedings which Landlord may institute to enforce the provisions of this Article 25.          Section 25.06  Each  and  every  one  of  Tenant’s  obligations  set  forth  in  this  Article 25  (including  the  indemnity) shall survive the expiration or other termination of the Lease Term.                                             ARTICLE 26.                                                                                      RULES AND REGULATIONS          Section 26.01  Subject  to  the  terms  of  this  Section  26.01, Tenant  shall,  and  shall  cause  all  Persons  Within Tenant’s Control to, comply with:  (i) all of the rules and regulations set forth on Exhibit “F” annexed hereto  and made a part hereof, and (ii) such additional rules and regulations as Landlord or the Board may, at any time or  from time to time hereafter, reasonably make and communicate to Tenant, which, in the reasonable judgment of  Landlord or the Board (if applicable), shall be necessary or desirable for the reputation, safety, care or appearance of  the  7-21  Condominium,  the  Building  and  Building  Systems,  or  the  preservation of  good  order  therein,  or  the  operation or maintenance of the 7-21 Condominium, the Building and Building Systems, or the comfort of tenants or  others in the 7-21 Condominium or the Building (collectively, the “Rules and Regulations”).  Subject to the Board  SNDA and the Board Consent, in the case of any conflict or inconsistency between the provisions of this Lease and  any rules or regulations of the Board, the provisions of such Board enacted rules or regulations shall control. In the  case  of  any  conflict  between  the  provisions  of  this  Lease  and  any  such  rules  or  regulations  of  Landlord,  the  provisions of this Lease shall control.  Nothing contained in this Lease shall be construed to impose upon Landlord  any duty or obligation to enforce the Rules and Regulations or the terms, covenants or conditions in any other lease  as against any other tenant, except that Landlord agrees not to enforce the Rules and Regulations against Tenant in a  discriminatory manner.  Landlord shall not be liable to Tenant for violation of the Rules and Regulations that  by  any  other  tenant,  or  by  any  other  tenant’s  servants,  employees,  agents,  visitors,  invitees,  subtenants  or  licensees;  provided,  however, that  if  any  other  tenant  or  occupant of any  portion  of  the  Building owned  by  Landlord shall  violate  any  of  the  Rules  and  Regulations  and  such  violation  materially  adversely  affects  Tenant’s  conduct  of  business in the Demised Premises, Landlord shall, upon Tenant’s request, use commercially reasonable efforts to  cause such tenant or occupant to comply therewith.  Landlord may, from time to time during the Lease Term, make  reasonable changes, modifications, amendments and additions to the Rules and Regulations; provided, however, that  any such change, modification, amendment or addition shall not adversely affect the ordinary conduct of Tenant’s  business in (or use of) the Demised Premises or decrease the rights of Tenant hereunder, in each case beyond a de  minimis extent.  Nothing contained above shall prohibit or restrict Landlord or the Board from making reasonable  changes,  modifications,  amendments  and  additions  to  the  Rules  and  Regulations that  are  substantially  similar  to  rules  and  regulations then  being  enacted  in  Comparable  Buildings  (including  those  relating  to COVID-19) and  applicable to all tenants and occupants of the Building and the same shall be deemed not to adversely affect the  ordinary  conduct  of  Tenant’s  business  in  (or  use  of)  the  Demised  Premises or  decrease  the  rights  of  Tenant  hereunder.  In the event that Tenant shall dispute the reasonableness of any modification, addition or change to the  Rules and Regulations made or adopted by Landlord from and after the Effective Date, the parties hereto agree to  submit  such  dispute  to Expedited  Arbitration  pursuant  to  Section  11.05B  hereof.   The  right  to  dispute  the  reasonableness of any modification, amendment, addition or change to the Rules and Regulations by Tenant shall be  deemed waived unless the same shall be asserted by service of a notice upon Landlord within thirty (30) days after  the giving of notice thereof to Tenant.                                             ARTICLE 27.                                                                                           PERSONS BOUND          Section 27.01  The covenants, agreements, terms, provisions and conditions of this Lease shall bind and  inure  to  the  benefit  of  the  respective  heirs,  distributees,  executors,  administrators,  successors,  assigns  and  legal  representatives of the parties hereto with the same effect as if mentioned in each instance where a party hereto is  named or referred to, except that no violation of the provisions of Article 10 shall operate to vest any rights in any  successor, assignee or legal representative of Tenant, and that the provisions of this Article 27 shall not be construed  as modifying the conditions of limitation contained in Article 14 and Article 15.  The term “Landlord” as used in  this  Lease  shall  mean  the  owner  of  the  Building  at  the  time  in  question,  and  it  is  agreed  that  the  covenants  and                                                  -94-    NY 78267766v2 

 

obligations of Landlord under this Lease arising from and after the effective date of any sale, assignment or transfer  of Landlord’s interest in the Building and under this Lease by operation of law or otherwise (provided that such  transferee  shall  assume  in  writing  such  covenants,  conditions  and  agreements  that  accrue  during  the  period  such  transferee  is  the  holder  of  Landlord’s  interest  under  this  Lease);  but  such  covenants,  conditions  and  agreements  arising from and after the effective date of such sale, assignment or transfer shall be binding upon each new owner,  tenant under the ground or underlying lease, or mortgagee in possession for the time being of the Building, until  again sold, assigned or transferred.  A lease of Landlord’s interest shall be deemed a transfer within the meaning of  this  Article 27.  For  the  avoidance  of  doubt,  in  no  event  shall  Landlord  sell, assign or  otherwise  transfer  its  fee  interest in any one of the Units that then constitute the Demised Premises under this Lease individually (or any part  thereof) without  also  selling,  assigning  or  otherwise  transferring  its  fee  interest  in  the  remaining Units that  then  constitute the Demised Premises to the same transferee, it being understood that it is the intention of the parties that  at all times during the Lease Term all such Units constituting the Demised Premises hereunder shall remain under a  single ownership.          Section 27.02  Notwithstanding  anything  to  the  contrary  provided  or  implied  elsewhere  in  this  Lease,  Tenant agrees that there shall be no personal liability on the part of Landlord arising out of any default by Landlord  under  this  Lease,  and  that  Tenant  (and  any person  claiming  by,  through  or  under  Tenant)  shall  look  solely  to  Landlord’s interest in and to the 7-21 Condominium and the rents, proceeds and profits therefrom (as well as any net  sale,  financing  (of  whatever  type)  and  condemnation  proceeds,  arising  therefrom)  for  the  enforcement  and  satisfaction of any right of Tenant arising out of this Lease, and that Tenant shall not enforce any judgment or other  judicial decree requiring the payment of money by Landlord against any other property or assets of Landlord, and at  no time shall any other property or assets of Landlord, or of Landlord’s principals, partners, members, shareholders,  directors or officers, be subject to levy, execution, attachment or other enforcement procedure for the satisfaction of  Tenant’s (or such person’s) remedies under or with respect to this Lease, the relationship of Landlord and Tenant  hereunder or Tenant’s use or occupancy of the Demised Premises.           Section 27.03  The parties hereto agree that the person executing and delivering this Lease on behalf of  Tenant is doing so as an officer of Tenant only and not in his/her personal capacities.  Notwithstanding anything to  the contrary contained in this Lease, Landlord, for itself and its successors and assigns, agrees that no incorporator  of Tenant, subscriber to Tenant’s capital stock, shareholder, employee, agent, officer or director, past, present or  future, of any corporation, or any partner, member or joint venturer of any partnership, limited liability company or  joint  venture  which  shall  be Tenant hereunder shall  have  any  personal  liability  for  satisfaction  of  any  claim  or  demand of whatsoever nature under or with respect to this Lease and no recourse shall be had by Landlord against  any  of  the foregoing  for  the satisfaction  of  Landlord’s  (or such person’s)  remedies  under  or  with  respect  to  this  Lease, the relationship of Landlord and Tenant hereunder or Tenant’s use or occupancy of the Demised Premises.                                               ARTICLE 28.                                                                                                NOTICES          Section 28.01  In  order  for  the  same  to  be  effective,  each  and  every  notice,  request,  demand or other  communication or instrument permitted or required to be given by the terms and provisions of this Lease, or by any  Legal Requirement, either by Landlord to Tenant or by Tenant to Landlord (any of the foregoing being referred to in  this  Article  28 as  a “Notice”),  shall  be  given  in  writing,  in  the  manner  provided  in  this  Section  28.01,  unless  expressly provided otherwise elsewhere in this Lease.  All Notices shall be delivered by hand or by a nationally  recognized overnight courier, and shall be deemed to have been delivered on the date of receipt thereof (or the date  that such receipt is refused, if applicable).  In the case of Notices given by Landlord to Tenant, any such Notice shall  be addressed to Tenant at the Demised Premises to the attention of Office Manager, with a copy addressed to the  attention of Global Real Estate, and (except for Notices given with respect to Building operations and services) at  the address as stated on the first page of this Lease, with copies of all default and termination Notices only to:  DLA  Piper LLP, 1251 Avenue of the Americas, New York, New York 10020, Attention: Chris M. Smith, Esq.  In the case  of Notices given by Tenant to the Board, any such Notice shall be addressed to the Board as follows:  The Board of  Managers of The 1166 A of A Condominium, c/o CBRE, 1166 Avenue of the Americas, New York, New York  10036.   In  the  case  of  Notices  given  by  Tenant  to  Landlord,  any  such  Notice  shall  be  addressed  to  Landlord  as  follows:  1166 LLC, c/o Edward J. Minskoff Equities, Inc., 1325 Avenue of the Americas, 23rd Floor, New York,  New York 10019, Attention: Chief Financial Officer, and with an additional copy to: Stroock & Stroock & Lavan                                                  -95-    NY 78267766v2 

 

LLP, 180 Maiden Lane, New York, New York 10038, Attention: Trevor T. Adler, Esq., and with copies thereof  delivered  as  aforesaid  to  parties  designated  in  accordance  with  Section 22.04.   Either  party  may,  by  Notice  as  aforesaid,  designate  a  different  address  or  addresses  for  Notices.   Landlord  shall  have  the  right  to  designate  a  managing agent who may give Notices to Tenant on behalf of Landlord which Notices shall be deemed to have been  given by Landlord hereunder.  Notices may also be given on behalf of Landlord by Landlord’s attorneys.                                               ARTICLE 29.                                                                                        PARTNERSHIP TENANT          Section 29.01  If Tenant is a partnership (or is comprised of two (2) or more persons, individually and as  co-partners of a partnership) or if Tenant’s interest in this Lease shall be assigned to a partnership (or to two (2) or  more persons, individually and as co-partners of a partnership) pursuant to Article 10 (any such partnership and such  persons being referred to in this Article as “Partnership Tenant”), the following provisions of this Section 29.01 shall  apply to such Partnership Tenant:  (i) the liability of each of the parties comprising Partnership Tenant shall be joint  and several, (ii) each of the parties comprising Partnership Tenant hereby consents in advance to, and agrees to be  bound by, any instrument which may hereafter be executed changing, modifying or discharging this Lease, in whole  or  in  part,  or  surrendering  all  or  any  part  of  the  Demised  Premises  to  Landlord,  and  by  any  notices,  demands,  requests or other communications which may hereafter be given by Partnership Tenant, (iii) any bills, statements,  notices, demands, requests or other communications given or rendered to Partnership Tenant shall be binding upon  Partnership  Tenant,  (iv)  if  Partnership  Tenant  shall  admit  new  partners,  all  of  such  new  partners  shall,  by their  admission  to  Partnership  Tenant,  be  deemed  to  have  assumed  performance  of  all  of  the  terms,  covenants  and  conditions of this Lease on Tenant’s part to be observed and performed, (v) Partnership Tenant shall give prompt  notice to Landlord of the admission of any such new partners, and, upon demand of Landlord, shall cause each such  new partner to execute and deliver to Landlord an agreement in form reasonably satisfactory to Landlord, wherein  each  such  new  partner  shall  assume  performance  of  all  of  the terms,  covenants  and  conditions  of  this  Lease  on  Tenant’s part to be observed and performed (but neither Landlord’s failure to request any such agreement nor the  failure of any such new partner to execute or deliver any such agreement to Landlord shall vitiate the provisions of  clause (iv) of this Section 29.01), and (vi) on each anniversary of the Commencement Date, Partnership Tenant shall  deliver to Landlord a list of the names of all partners and their then current residential addresses.                                             ARTICLE 30.                                                                                  NO WAIVER; ENTIRE AGREEMENT          Section 30.01  The failure of Landlord or Tenant to seek redress for violation of, or to insist upon the  strict performance of any covenant, agreement, term, provision or condition of this Lease, or any of the Rules and  Regulations, shall  not  constitute  a waiver  thereof,  and  Landlord  or  (except  as  otherwise  provided  in  this  Lease)  Tenant,  as  the  case  may  be, shall  have  all  remedies  provided  herein  and  by  applicable  Legal  Requirements  with  respect  to  any  subsequent  act  which  would  have  originally  constituted  a  violation  hereunder.   The  receipt  by  Landlord  of  Fixed  Rent  and/or  additional  rent  with  knowledge  of  the  breach  of  any  covenant,  agreement,  term,  provision or condition of this Lease shall not be deemed a waiver of such breach.  No provision of this Lease shall  be deemed to have been waived by Landlord or Tenant, unless such waiver shall be in writing signed by Landlord or  Tenant, as the case may be.  Tenant and Landlord hereby expressly waive any right that such party might otherwise  have to raise or assert by reason of the aforesaid failure of the other party to enforce rights, seek redress or insist  upon  strict  performance,  or,  with  respect  to  Tenant,  the  aforesaid  receipt  by  Landlord  of  Fixed  Rent  and/or  additional rent, as a basis for any defense or counterclaim in any legal, equitable or other proceeding in which such  party  shall  seek  to  enforce  any  rights,  covenants  or  conditions  under  this  Lease.   Except  as  otherwise  expressly  provided in this Lease, the remedies provided in this Lease shall be cumulative and shall not in any way abridge,  modify or preclude any other rights or remedies to which Landlord or Tenant may be entitled under this Lease, at  law or in equity.  Without limiting the generality of the foregoing, Tenant expressly agrees that, upon the occurrence  of an Event of Default, Landlord shall be entitled to exercise all of the rights set forth in Article 15 above (including  the right to terminate this Lease), notwithstanding that this Lease provides that Landlord may cure the default or  otherwise  perform  the  obligation  of  Tenant  which gave  rise  to  such  Event of  Default,  and  regardless  of  whether  Landlord  shall  have  effected  such  cure  or  performed  such  obligation.  The  receipt  and  retention  by  Landlord  of  Fixed Rent or additional rent from any person other than Tenant shall not be deemed a waiver by Landlord of any                                                  -96-    NY 78267766v2 

 

breach  by  Tenant  of  any  covenant,  agreement,  term,  provision  or  condition  contained  in  this  Lease,  or  the  acceptance of such other person as a tenant, or a release of Tenant from the further performance of the covenants,  agreements, terms, provisions and conditions contained in this Lease.          Section 30.02  This Lease, with the schedules, riders and exhibits, if any, annexed hereto, contains the  entire agreement between Landlord and Tenant, and any agreement heretofore made shall be deemed merged herein.   Any agreement hereafter made between Landlord and Tenant shall be ineffective to change, modify, waive, release,  discharge, terminate or effect a surrender or abandonment of this Lease, in whole or in part, unless such agreement  is in writing and signed by both Landlord and Tenant.  All of the schedules, riders and exhibits, if any, annexed  hereto are incorporated herein and made a part hereof as though fully set forth herein.  If Tenant shall have any right  to an extension or renewal of the Lease Term, or any right to lease other space from Landlord, Landlord’s exercise  of  any  Landlord’s  right  to  terminate  this  Lease  pursuant  to  the  terms  of  this  Lease  shall  operate,  ipso  facto,  to  terminate such renewal, extension or other right, whether or not theretofore exercised by Tenant.            Section 30.03  No act or thing done by Landlord or Landlord’s agents during the Lease Term shall be  deemed to constitute an eviction by Landlord, or be deemed an acceptance of a surrender of the Demised Premises,  and no agreement to accept such surrender shall be valid, unless in writing signed by Landlord.  No employee of  Landlord  or of  Landlord’s  agents  shall  have  any power  to  accept  the  keys  of  the  Demised  Premises  prior  to  the  termination  of this  Lease.   The  delivery  of  keys  to  any  employee  of  Landlord  or  of  Landlord’s  agents  shall  not  operate as a termination of this Lease or a surrender of the Demised Premises.  In the event that Tenant at any time  shall desire to have Landlord sublet the Demised Premises for Tenant’s account, Landlord or Landlord’s agents are  authorized to receive said keys for such purposes without releasing Tenant from any of Tenant’s obligations under  this Lease, and Tenant hereby relieves Landlord of any liability for loss of or damage to any of Tenant’s property in  connection with such subletting.                                             ARTICLE 31.                                                                                    MISCELLANEOUS PROVISIONS          Section 31.01  Tenant represents that Tenant has inspected the Demised Premises, and (except as may be  otherwise  expressly  set  forth  elsewhere  in  this  Lease, including  in  Article  2)  agrees  to  take  same  in  its  existing  condition “as is” and “where is” on the Commencement Date.  Tenant agrees that neither Landlord, nor any broker,  agent,  employee  or  representative  of  Landlord  nor  any  other  party,  has  made,  and  Tenant does  not  rely  on,  any  representations, warranties or promises with respect to the 7-21 Condominium, the Building, the Land, the Demised  Premises or this Lease, except as herein expressly set forth, and no rights, easements or licenses are acquired by  Tenant by implication or otherwise except as expressly set forth in the provisions of this Lease.  Landlord makes no  representation  as  to  the  design,  construction,  development  or  use  of  the  Land,  the  Building  or  the  7-21  Condominium, except as may be expressly set forth in this Lease.          Section 31.02  The Table of Contents and Article headings of this Lease are included for convenience  only, and shall not limit or define the meaning or content hereof.  All pronouns and any variations thereof shall be  deemed to refer to the masculine, feminine, neuter, singular or plural, as the identity of the person or persons may  require.  The terms “herein,” “hereof” and “hereunder,” and words of similar import, shall be construed to refer to  this Lease as a whole, and not to any particular Article or Section, unless expressly so stated.  The term “and/or”,  when applied to two or more matters or things, shall be construed to apply to any one or more or all thereof as the  circumstances  warrant  at  the  time  in  question.   The  term  “person”  shall  mean  any  natural  person  or  persons,  a  partnership, a corporation, and any other form of business or legal association or entity, unless expressly otherwise  stated.  An “affiliate” of any person or entity shall mean any person which controls or is controlled by, or is under  common  control  with, such  person  or  entity,  with  the  word  “control”  (and,  correspondingly,  “controlled by”  and  “under common control with”), as used with respect to any person, meaning the possession of the power to direct or  cause the direction of the management and policies of such person.  The rule of “ejusdem generis” shall not apply in  or to the construction of any term of this Lease.          Section 31.03  If the term “Tenant”, as used in this Lease, refers or shall refer to more than one person,  then, as used in this Lease, said term shall be deemed to include all of such persons or any one of them.  The term  “Tenant” shall mean the Tenant herein named or any assignee or other successor-in-interest (immediate or remote)                                                  -97-    NY 78267766v2 

 

of the Tenant herein named, or assignee or other successor-in-interest thereof, which at the time in question is the  owner of the Tenant’s leasehold estate granted by this Lease; but, except as otherwise set forth in this Lease, the  foregoing provisions of this Section 31.03 shall not be construed to permit any assignment of this Lease or to relieve  the Tenant herein named or any assignee or other successor-in-interest (whether immediate or remote) of the Tenant  herein  named  from  the  full  and  prompt  payment,  performance  and  observance  of  each  and  every  one  of  the  covenants, obligations and conditions to be paid, performed and observed by Tenant under this Lease.          Section 31.04                    A.     Except as otherwise expressly provided in this Section 31.04, Tenant shall not display or  erect any lettering, signs, advertisement, posters, displays, or awnings (collectively, “Signs”) outside of the Demised  Premises  without  obtaining  Landlord’s and  (if  required  under  the  Condominium  Documents,  but  subject  to  the  Board SNDA and the Board Consent) the Board’s prior approval thereto (with such approval to be granted, withheld  or conditioned in the Board’s or Landlord’s sole discretion, except as otherwise expressly provided in this Section  31.04).  Subject to Tenant obtaining Landlord’s and (if required under the Condominium Documents, but subject to  the  Board  SNDA  and  the  Board  Consent) the  Board’s  approval  as  to  the  precise  location,  dimensions  and  motif  thereof  (which  Landlord’s  approval  shall  not  be  unreasonably  withheld,  conditioned  or  delayed, provided  that  if  such  Signs consist  solely  of  the  initially  named  Tenant’s  name  and/or  logo,  such  consent  shall  be  granted  by  Landlord), Tenant  shall  have  the  right (at  Tenant’s  expense)  to  install  Signs appropriate  for  premises  in  a  Comparable Building (that contain Tenant’s name and/or logo) on Tenant’s entrance to the Demised Premises (and  on or adjacent to the exterior doors of the Demised Premises) and in the elevator lobby on each full floor of the  Demised Premises.  Subject to (i) Tenant’s compliance with all applicable Legal Requirements, and (ii) obtaining  Landlord’s  approval  with  respect  to  a  Final  Sign  Plan  (which  approval  shall  not  be  unreasonably  withheld,  conditioned or delayed, provided that if such Signs are of a size, color, material and other features and components  consistent with the overall design of the other Signs on the Building’s entrances and consist solely of the initially  named Tenant’s name and/or logo, such consent shall be granted by Landlord), and provided that (a) FTI Consulting  Inc.  (“FTI”) shall  then actually  and  physically occupy  at  least two  (2)  full  floors of  the 7-21  Condominium  (including  occupancy  by  permitted  Desk  Sharing  Entities), and (b) Tenant  shall  not  then  be  in  default of  any  monetary or material non-monetary obligations of Tenant under this Lease (after notice of such default has been  given to Tenant, subject to the provisions of Subsection 31.04B below) and no Event of Default shall have occurred  that  is  then  continuing  (subject  to the  provisions of Subsection  31.04B below), FTI  shall  have  the non-exclusive  right  to  install (subject  to  the  receipt  of  any  necessary  Board  approvals if  required  under  the  Condominium  Documents, but subject to the Board SNDA and the Board Consent), at Tenant’s own cost and expense, Tenant’s  standard identification  signage  containing  FTI’s  name  and/or  logo  on  the  Building’s  45th  Street  and  46th Street  entrances  only,  as  more  particularly  set  forth  on  Exhibit  “H-1”  annexed  hereto,  and  in  accordance  with the  specifications and criteria for the six (6) inch high logo on granite signage set forth on Exhibit “H-2” annexed hereto  (the “Street Entrance Sign”); it being agreed and understood that the ten (10) inch high sign illustrated thereon shall  not apply to Tenant.  In no event shall Tenant erect any Signs on the façade or any exterior portion of the Building,  other than the Street Entrance Sign in accordance with the provisions of this Subsection 31.04A, or any so-called  “neon” signs in the Demised Premises.  In addition to complying with all of the terms and conditions of Article 5 of  this Lease, to the extent required hereunder, Tenant shall submit to Landlord a detailed sketch of any Signs showing  the  proposed  signage  and  the  materials and  means  and  methods of  attachment  and  installation therefor  (each,  a  “Final Sign Plan”), and, if approved by Landlord, the same shall not be altered in any manner whatsoever without  first  obtaining  Landlord’s (and  the  Board’s,  to  the  extent required  under  the  Condominium  Documents) prior  consent for such proposed change in accordance with the foregoing provisions of this Subsection 31.04A.  Tenant  shall maintain all such Signs at Tenant’s own cost and expense, in good order and condition, and in accordance with  all of the terms and provisions of this Lease. All Signs shall be removed by Tenant upon the expiration or sooner  termination of the Lease Term, and Tenant shall promptly repair, at Tenant’s own cost and expense, any damage to  the  Demised  Premises  and/or  other  portions  of  the  Building  (including  any  exterior  portions)  caused  by  the  installation, maintenance or removal of such Signs.  Tenant shall defend, indemnify and hold Landlord, the Board  (subject to the Board SNDA and the Board Consent) and Landlord’s and the Board’s (subject to the Board SNDA  and  the  Board  Consent) agents  and  employees  harmless  from  and  against  all  liability,  loss,  damage  or  expense  (including  reasonable  attorney's  fees  and  other  expenses)  that  such  party  may  suffer or  incur  by  reason  of  the  installation, maintenance or removal of such Signs; provided, however, that in no event shall such indemnification  by  Tenant  include  any  claims  made  by  another  tenant,  subtenant  or  occupant  of  the  7-21  Condominium  or  the  Building against Landlord, the Board or any Persons Within Landlord’s Control in connection with any violation of                                                  -98-    NY 78267766v2 

 

such  tenant’s,  subtenant’s  or  occupant’s  signage  rights  under  such  party’s  lease,  sublease  or  other  occupancy  agreement, as applicable.  Tenant shall not paint or decorate any part of the exterior of the Demised Premises or  interior  of  the  Building’s  main  lobby  without  first  obtaining  Landlord’s and (if  required  by  the  Condominium  Documents, but subject to the Board SNDA and the Board Consent) the Board’s approval, which approval, in each  case,  may  be  granted, withheld or  conditioned in  Landlord’s,  or  the  Board’s,  as  applicable, sole  and  absolute  discretion.  Tenant shall, immediately upon receiving notice from Landlord, the Board or Landlord’s or the Board’s  agent (subject, with respect to the Board, to the Board’s authority to send such notice pursuant to the Condominium  Documents,  the  Board  Consent  and  the Board SNDA),  promptly  discontinue,  remove  or  change  any  displays  or  advertising matter that are inconsistent with the standards of Comparable Buildings.  Landlord reserves the right to  require Tenant to correct, at Tenant’s expense, any non-conforming Sign or any other non-conforming displays that  are visible from outside the Demised Premises or within the Building’s main lobby.  In the event that Tenant desires  to substitute the permitted signs installed for FTI herein or its Related Entities or Successor Entities as permitted  hereunder, (x) Tenant shall give notice thereof to Landlord and (y) provided the other applicable terms hereof are  satisfied,  Landlord  at  Tenant’s  reasonable  expense  shall  promptly  replace  the  existing  signage  with  such  other  signage.  During the Lease Term, so long as (i) FTI shall then actually and physically occupy at least 80,480 rentable  square feet of the 7-21 Condominium, and (ii) no Event of Default has occurred and is then continuing under this  Lease, Landlord shall not grant any tenant or occupant occupying 80,480 rentable square feet or less of the 7-21  Condominium the right to signage on the exterior of the Building that is more prominent than Tenant’s signage then  located on the exterior of the Building.  As of the Effective Date, there is no signage located on the exterior of the  46th Street side of the Building.                  B.     Supplementing  the  provisions of  Subsection  31.04A  above,  if on  the  date  that  Tenant  intends to install the Street Entrance Sign:                         (i)     Tenant shall be in default (after Tenant shall have theretofore been given notice  of  any  such monetary  or  material  non-monetary default) with  respect  to  any  of  the monetary  or  material  non- monetary obligations of Tenant under this Lease, then Tenant’s right to install such Street Entrance Sign shall be  deemed suspended until such time as Tenant shall have cured such monetary or material non-monetary default.  If  Tenant shall cure such monetary or material non-monetary default within the applicable cure period, then Tenant’s  right  to  install  such Street  Entrance  Sign shall  automatically  be  deemed  reinstated,  but  only  if  Tenant  is  then  in  compliance with all of the other applicable requirements of this Section 31.04 with respect to such Street Entrance  Sign; or                         (ii)    (I)  an  Event  of  Default  has  occurred  by  virtue  of  Tenant’s  failure  to  cure  a  monetary or material non-monetary default within the specified cure period pursuant to Subsection 31.04B(i) above,  or  (II)  an  Event  of  Default  shall  have  occurred  and  is  continuing  on  the  date  on  which  Tenant  shall  request  Landlord’s consent to Tenant’s installation of the Street Entrance Sign, then, in either case, Landlord’s obligation to  respond to such request shall be deemed suspended until such time as Tenant shall have cured such Event of Default  and if (a) Tenant cures such Event of Default prior to the EOD Cure Date, and Landlord shall not have terminated  this Lease in accordance with Article 15 below by virtue of such Event of Default, and (b) Tenant shall not be in  default of any of Tenant’s other monetary or material non-monetary obligations under this Lease after notice of such  monetary or material non-monetary default shall have been given to Tenant (in which event Subsection 31.04B(i)  above shall apply), and no other Event of Default shall have occurred that is then continuing (in which event this  Subsection 31.04B(ii) shall apply), then, from and after the subject EOD  Cure Date, Tenant’s right to install the  Street Entrance Sign shall automatically be deemed reinstated, but only if Tenant is then in compliance with all of  the other applicable requirements of this Section 31.04 with respect to such Street Entrance Sign.          Section 31.05  The  submission  of  this  Lease  to  Tenant  shall  not  be  construed  as  an  offer,  nor  shall  Tenant have any rights with respect thereto or the Demised Premises, unless and until Landlord and Tenant shall  each  have  executed  a  counterpart  of  this Lease  and  delivered  the  same  to  the  other.   Until  such  execution  and  delivery, (i) any action taken or expense incurred by Tenant in connection with this Lease or the Demised Premises  shall  be  solely  at  Tenant’s  own  risk  and  account,  and  (ii)  any  action taken  or  expense  incurred  by  Landlord  in  connection with this Lease or the Demised Premises shall be solely at Landlord’s own risk and account.                                                   -99-    NY 78267766v2 

 

       Section 31.06                    A.     Tenant and Landlord agree not to record this Lease.  Landlord hereby agrees that, upon  the request of Tenant, Landlord shall, contemporaneously with the execution of this Lease, execute, acknowledge  and deliver to Tenant (i) a short form or memorandum of this Lease in recordable form and (ii) all transfer tax forms  required in connection therewith.  Such short form lease or memorandum shall set forth only such matters as may be  required by statute for recording (including Tenant’s options under Article 34, Article 35 and Article 38), and shall  contain  no  other  terms  of  this  Lease.  Recording,  filing  and  like  charges,  and  any  stamp,  transfer  or  other  tax  imposed and/or payable in connection with such recording shall be paid by Tenant.                    B.     Simultaneously with the delivery of said short form lease or memorandum, Tenant shall  deliver  to  the  law  firm  of  Stroock  &  Stroock  & Lavan  LLP  (the  "Escrow  Agent")  an  agreement,  executed  and  acknowledged  by  Tenant,  removing  such  short  form  or  memorandum  of  lease  from  record  (the  "Memorandum  Termination  Agreement"),  together  with  any  other  documentation  or  tax  forms  required  by  any  governmental  authority  to  be  executed  in  connection  with  the  recording  of  the  Memorandum  Termination  Agreement.   The  Memorandum Termination Agreement and such other documentation or tax forms shall be held in escrow by the  Escrow Agent until the occurrence of any of the events hereafter described in this Subsection 31.06B.  Upon the  expiration or sooner termination of this Lease, or Tenant's surrender of the Demised Premises, Tenant shall deliver  to the Escrow Agent written authorization to record the Memorandum Termination Agreement.  If Tenant shall fail  to  deliver  said  authorization  to  the  Escrow  Agent  within  thirty  (30)  days  following  the  expiration  or  sooner  termination of this Lease or Tenant's surrender of the Demised Premises, the Escrow Agent is hereby irrevocably  authorized by Tenant to record the Memorandum Termination Agreement.  Upon the recording of the Memorandum  Termination Agreement, the Escrow Agent shall be relieved and discharged of all responsibilities and liabilities with  respect thereto, and shall not be subject to any claims made by or on behalf of Tenant or Landlord.  Landlord and  Tenant agree to indemnify and hold the Escrow Agent harmless from any and all liability, costs, expenses (including  reasonable  attorney fees  and disbursements),  damages,  actions  or  other  charges  which may  be  imposed  upon, or  incurred by, the Escrow Agent in connection with the performance of its duties hereunder, except with respect to  any liability, cost and expense incurred as a result of the Escrow Agent's willful misconduct or gross negligence.   The foregoing provisions shall survive the expiration or any sooner termination of this Lease.                  C.     The Escrow Agent, by notice to Landlord and Tenant, shall have the right to designate a  successor escrow agent, provided that such successor escrow agent shall be a reputable law firm, with at least fifty  (50) attorneys and offices in Manhattan.  Such designation of a successor escrow agent shall not be deemed effective  until  such  successor  escrow  agent  shall  have,  in  a  writing  delivered  to  Landlord  and  Tenant,  accepted  such  designation and agreed to be bound by the provisions of this Section 31.06.  Upon the effective designation of a  successor  escrow  agent,  the  preceding Escrow  Agent  shall  be  relieved  and  discharged  of  all  responsibilities  and  liabilities with respect to the Memorandum Termination Agreement, and shall not be subject to any claims made by  or on behalf of Tenant or Landlord.           Section 31.07  This Lease shall be governed exclusively by the provisions hereof, without the aid of any  canon, custom or rule of law requiring or suggesting construction against the party drafting or causing the drafting of  the provision in question.          Section 31.08  There shall be no merger of this Lease, or the leasehold estate created by this Lease, with  any other estate or interest in the Demised Premises, or any part thereof, by reason of the fact that the same person  may acquire or own or hold, directly or indirectly, (i) this Lease or the leasehold estate created by this Lease, or any  interest  in  this  Lease  or  in  any  such  leasehold  estate,  and  (ii) any  such  other  estate  or  interest  in  the  Demised  Premises  or  any  part  thereof;  and  no  such  merger  shall  occur  unless  and  until  all  persons  having  an  interest  (including a security interest) in (a) this Lease or the leasehold estate created by this Lease and (b) any such other  estate or interest in the Demised Premises, or any part thereof, shall join in an instrument effecting such merger and  shall duly record the same.          Section 31.09  If Landlord or Tenant is a corporation or other business entity, each person executing this  Lease on behalf of Landlord or Tenant hereby covenants, represents and warrants that the party on whose behalf the  Lease is being executed is a duly incorporated or duly qualified (if foreign) corporation or business entity and is                                                 -100-    NY 78267766v2 

 

authorized to do business in the State of New York; and that each person executing this Lease on behalf of such  party is duly authorized to execute, acknowledge and deliver this Lease to the other party.          Section 31.10  The  terms  “Landlord  shall  have  no  liability  to  Tenant”,  or  “the  same  shall  be  without  liability to Landlord”, or “without incurring any liability to Tenant therefor”, or words of similar import, shall mean  that, except as otherwise expressly provided in this Lease, Tenant shall not be entitled to terminate this Lease, or to  claim actual or constructive eviction (partial or total) or to receive any abatement or diminution of rent, or to be  relieved  in  any  manner  of  any  of  Tenant’s  other  obligations  hereunder,  or  to  be  compensated  for  loss  or  injury  suffered, or to enforce any other right or kind of liability whatsoever against Landlord under or with respect to this  Lease or with respect to Tenant’s use or occupancy of the Demised Premises.          Section 31.11  Intentionally Omitted.          Section 31.12  Except as otherwise expressly provided herein, all bills, invoices or statements rendered  to Tenant pursuant to the terms of this Lease shall be deemed binding and conclusive if, within ninety (90) days of  receipt of the same, Tenant fails to notify Landlord, in writing, of Tenant’s intention to dispute such bill, invoice or  statement.          Section 31.13  Intentionally Omitted.          Section 31.14  Tenant acknowledges and agrees that Tenant has no rights to any development rights, “air  rights” or comparable rights appurtenant to the Land and the Building, and consents, without further consideration,  to any utilization of such rights by Landlord, and agrees to promptly execute and deliver any instruments which may  be reasonably requested by Landlord, including instruments merging zoning lots, evidencing such acknowledgment  and consent.  The provisions of this Section 31.14 shall be deemed to be and shall be construed as an express waiver  by  Tenant  of  any  interest  Tenant  may  have  as  a  “party  in  interest”  (as  such  quoted  term  is  defined under  the  definition of “Zoning Lot” in Section 12-10 of the Zoning Resolution of the City of New York) in the Land and/or  the Building.          Section 31.15  This  Lease  shall  not  be  deemed  or  construed  to  create  or  establish  any  relationship  of  partnership or joint venture or similar relationship or arrangement between Landlord and Tenant.          Section 31.16  Unless otherwise expressly set forth to the contrary in this Lease, during the continuance  of any monetary or material non-monetary default (after Tenant shall have theretofore been given notice of any such  monetary  or  material  non-monetary default)  with  respect  to  any  of  Tenant’s  obligations  under  this  Lease, or  following the occurrence and during the continuance of an Event of Default, Tenant shall not be entitled to receive  any funds or proceeds being held by Landlord under or pursuant to this Lease.  Supplementing the foregoing, if:                  A.     on the date that Tenant shall be entitled to receive any funds or proceeds being held by  Landlord under or pursuant to this Lease, Tenant shall be in default (after Tenant shall have theretofore been given  notice of any such default) with respect to any of Tenant’s monetary or material non-monetary obligations under this  Lease, Landlord’s obligation to pay (or credit against Fixed Rent, as the case may be) such funds or proceeds to  Tenant  shall  be  deemed  suspended  until  such  time  as  Tenant  shall  have  cured  said monetary  or  material  non- monetary default prior to a termination of this Lease.  If Tenant shall cure said monetary or material non-monetary  default prior to a termination of this Lease, then Tenant’s right to receive, and Landlord’s obligation to pay (or credit  against Fixed Rent, as the case may be), such funds or proceeds shall be deemed reinstated after Tenant shall have  cured such monetary or material non-monetary default, but only if Tenant shall have (i) otherwise complied with all  applicable requirements (other than the cure of such default) within the prescribed time periods for receiving such  funds  or  proceeds,  and  (ii)  delivered  a notice to  Landlord  stating  that  such monetary  or  material  non-monetary  default has been cured and requesting the payment (or the credit against Fixed Rent, as the case may be) of such  funds or proceeds, and                  B.     (I) an Event of Default has occurred by virtue of Tenant’s failure to cure a monetary or  material  non-monetary default within  the  specified  cure  period  pursuant  to  Subsection 31.16A above,  or  (II)  an  Event of Default shall have occurred and is continuing on the date on which Tenant shall be entitled to receive any                                                 -101-    NY 78267766v2 

 

funds or proceeds being held by Landlord under or pursuant to this Lease, Landlord’s obligation to pay (or credit  against Fixed Rent, as the case may be) such funds or proceeds to Tenant shall be deemed suspended until such time  as Tenant shall have cured such Event of Default and if (a) Tenant cures such Event of Default prior to the EOD  Cure Date, and Landlord shall not have terminated this Lease in accordance with Article 15 above by virtue of such  Event of Default, and (b) Tenant shall not be in default of any of Tenant’s other monetary or material non-monetary  obligations under this Lease after notice of such monetary or material non-monetary default shall have been given to  Tenant (in which event Subsection 31.16A above shall apply), and no other Event of Default shall have occurred  that is then continuing (in which event this Subsection 31.16B shall apply), then, from and after the subject EOD  Cure Date, Tenant’s right to receive, and Landlord’s obligation to pay (or credit against Fixed Rent, as the case may  be), such funds or proceeds shall be deemed reinstated.          Section 31.17                    A.     It is expressly understood and agreed that the Demised Premises are a portion of the 7-21  Condominium.   Landlord  represents  that,  as  of  the  Effective  Date,  there  is  no  provision  of  the  Condominium  Documents  that  would  (x)  impose  any  obligation  on  Tenant  which  is  not  contemplated  by  the provisions  of  this  Lease or (y) reduce any right expressly granted to Tenant under this Lease, in each case, other than to a de minimis  extent. Subject to the terms of Section 22.06, the Board SNDA and the Board Consent. (i)Tenant shall not perform  any act, or fail to perform any act which Tenant is required to perform hereunder, if such performance or failure  would be a violation of or default under any of the Condominium Documents by Landlord;  (ii)Tenant shall not  exercise any right or privilege under this Lease, the exercise or performance of which would be a violation of or  default under any of the Condominium Documents; (iii)  Tenant agrees to be bound by all of the terms contained in  the Condominium Documents which pertain to an Occupant of the 7-21 Condominium; and (iv) Tenant agrees to  observe all of the rules and regulations of the Condominium and the Board.  Tenant acknowledges that Tenant has  received a copy of the Condominium Documents and has had the opportunity to review same.  Subject to the terms  of Section 22.06 and the Board SNDA, the Board shall have the power to enforce against Tenant (and each and  every  assignee  or  subtenant  of  Tenant)  the  terms of  the Lease,  if  the  actions  of  Tenant  (or  such  assignee  or  subtenant) shall be in breach of the Condominium Documents, to the extent that the same would entitle the Board to  enforce the terms of the Condominium Documents against Landlord.                    B.     Notwithstanding  anything  to  the  contrary  contained  elsewhere  in  this  Lease,  any  provision of this Lease that requires Landlord to “cause the Board” to provide services, perform repairs or grant  consents shall be deemed to require Landlord to use commercially reasonable efforts to cause the Board to do the  same, and, except as otherwise set forth herein, Landlord shall not be liable to Tenant for any failure in performance  resulting  from  the  failure  in  performance  by  the  Board,  and  Landlord’s  obligations  hereunder  are  accordingly  conditional  where  such  obligations  require  such  parallel  performance  by  the  Board; provided,  however,  that  Landlord  shall  not  vote  to  approve  any  modification,  amendment  or  change  to  the  terms  of  the  Condominium  Documents that would (A) impose any obligation on Tenant which is not contemplated by the provisions of this  Lease or (B) reduce any right expressly granted to Tenant under this Lease, in each case, other than to a de minimis  extent. If there is a breach of Landlord’s obligations pursuant to this Subsection 31.17B and Tenant is adversely  affected thereby, Tenant shall have the right with respect to such breach to seek injunctive relief and/or monetary  damages.   Landlord  agrees,  at  Landlord’s  cost  and  expense,  to  use  reasonable  efforts  to  enforce such  rights  as  Landlord may have against the Board under the Condominium Documents for the benefit of Tenant upon Tenant’s  request therefor (and to forward to the Board any notices or requests for consent as Tenant may reasonably request).   Nothing contained in this Subsection 31.17B shall require Landlord to institute any suit or action to enforce any such  rights; provided, however, that Tenant shall have the rights set forth in Subsection 31.17D below.                  C.     In  the  event  that,  pursuant  to  Subsection  31.17D  below,  Tenant  exercises  its  right  to  institute an action or proceeding against the Board in the name of Landlord to enforce Landlord’s rights under the  Condominium  Documents  which  are  applicable  to  Tenant,  Tenant  shall  make notify  Landlord  of such  election  Landlord  (“Action  Notice”).   Such  Action  Notice  shall  contain  (i)  the  name  and  address  of  counsel  that  Tenant  intends to employ, and (ii) reasonable details as to the cause of action.  Landlord shall have thirty (30) days from the  delivery of such Action Notice to object thereto by notice to Tenant (an “Objection to Action Notice”).  Upon the  expiration of such thirty (30) day period, provided that Landlord shall not have delivered an Objection to Action  Notice to Tenant thereby, Tenant may institute an action pursuant to Subsection 31.17D below.  In the event that  Landlord delivers an Objection to Action Notice and the parties do not reach a resolution with respect thereto within                                                 -102-    NY 78267766v2 

 

twenty  (20)  days  following  its  delivery,  either  party  shall  have  the  right  to  submit  such  dispute  to  Expedited  Arbitration in accordance with the provisions of Subsection 11.05B above, and Tenant shall not institute any action  or proceeding against the Board unless and until the arbitrator shall have determined that Tenant is then entitled to  institute such action or proceeding.                     D.     At  the  request  of  Tenant,  Landlord  shall  permit  Tenant  to  institute  an  action  or  proceeding  against  the  Board  in  the  name  of  Landlord  to  enforce  Landlord’s  rights  under  the  Condominium  Documents  which  are  applicable  to  Tenant,  provided  that:  (i)  no Event  of  Default  shall  have  occurred and  be  continuing  on  the  date  that  Tenant  makes  such  request;  (ii)  such  action  shall  be  prosecuted at  the  sole  cost  and  expense of Tenant, and Tenant shall agree to indemnify and hold Landlord harmless from and against any and all  claims, liabilities, damages, costs and expenses (including reasonable attorneys’ fees and disbursements) incurred or  suffered  by  Landlord  in  connection  with  such  action  or  proceeding).   Tenant  shall  keep  Landlord reasonably  apprised as to the status of any such proceedings.                  E.     Landlord represents to Tenant that Landlord has provided Tenant with true, correct and  complete  copies of  the  Condominium  Documents.  So  long  as no  Event  of  Default  has  occurred  and  is  then  continuing under this Lease, Landlord shall not (x) perform any act, or fail to perform any act (including the timely  payment of all sums due under the Condominium Documents), if such performance or failure to perform would be a  violation  of  or  default  under  any  of  the  Condominium  Documents  that  would  adversely  affect  Tenant's  use  and  occupancy of the Demised Premises for the Authorized Use and/or Tenant's rights and obligations under this Lease,  or (y) vote  in  any  meeting  of  the  Board  in  a manner  that,  or  take  any  other  action  which, would materially  and  adversely affect Tenant's use and occupancy of the Demised Premises for the Authorized Use and/or Tenant's rights  and obligations under this Lease, including with respect to any amendment, modification or supplementation of the  Condominium Documents. Nothing contained above shall prohibit or restrict Landlord from voting in any meeting  of the Board in favor of any amendment, modification or supplement to the Condominium Documents that imposes  requirements  applicable  to  tenants  of  the  Building  generally,  provided  that  such  requirements  are  substantially  similar to requirements then being enacted in Comparable Buildings (including those relating to COVID-19), and  such  vote  shall  be  deemed  not  to  materially  and  adversely  affect Tenant's  use  and  occupancy  of  the  Demised  Premises for the Authorized Use and/or Tenant's rights and obligations under this Lease.                  F.     Landlord agrees that Tenant shall have no obligation to reimburse the Board for any costs  incurred  by  the  Board in  connection  with  the  Board’s  review  of  any  of  Tenant’s  plans  for  Tenant’s  Initial  Improvements delivered to the Board prior to the Effective Date, the negotiation of the Board Consent and the Board  SNDA that are delivered by the Board to Tenant in connection with the execution of this Lease.          Section 31.18                    A.     As  an  inducement  to  Landlord  to  enter  into  this  Lease,  Tenant  hereby  represents  and  warrants that:  (i) Tenant is not, nor is Tenant owned or controlled directly or indirectly by, any person, group, entity  or nation named on any list issued by the Office of Foreign Assets Control of the United States Department of the  Treasury (“OFAC”) pursuant to Executive Order 13224 or any similar list or any law, order, rule or regulation or  any  Executive  Order  of  the  President  of  the  United  States,  or  by  any  other  federal  or  state  laws,  as  a  terrorist,  “Specially  Designated  National  and  Blocked  Person”  or  other  banned or  blocked  person  (with  any  such  person,  group, entity or nation being hereinafter referred to as a “Prohibited Person”); (ii) Tenant is not (nor is it owned or  controlled, directly or indirectly, by any person, group, entity or nation that is) acting directly or indirectly for or on  behalf of any Prohibited Person; and (iii) from and after the effective date of the above-referenced Executive Order,  or  such  other  federal  or  state  law,  Tenant  (and  any  person,  group, or  entity  that  Tenant  controls,  directly  or  indirectly)  has  not  conducted  nor  will  conduct  business  nor  has  engaged  nor  will  engage  in  any  transaction  or  dealing with any Prohibited Person in violation of the U.S. Patriot Act or any OFAC rule or regulation, or any rule  or  regulation  promulgated  under  any  other federal or  state  law  with  respect  to  Prohibited  Persons,  including  any  assignment of this Lease  or any subletting of all or any portion of the Demised Premises, or permitting the Demised  Premises or any portion thereof to be used or occupied (on a permanent, temporary or transient basis), or the making  or receiving of any contribution of funds, goods or services, to or for the benefit of a Prohibited Person in violation  of the U.S. Patriot Act, any OFAC rule or regulation, or any rule or regulation promulgated under any other federal  or state law with respect to Prohibited Persons.  In connection with the foregoing, it is expressly understood and  agreed that (x) any breach by Tenant of the foregoing representations and warranties shall be deemed a default by                                                 -103-    NY 78267766v2 

 

Tenant under Section 15.01 of this Lease and shall be covered by the indemnity provisions of Section 11.03 of the  this Lease, and (y) the representations and warranties contained in this Section 31.18A shall be continuing in nature  and shall survive the expiration or earlier termination of this Lease.                  B.     As  an  inducement  to  Tenant  to  enter  into  this  Lease,  Landlord  hereby  represents  and  warrants that:  (i) Landlord is not, nor is Landlord owned or controlled directly or indirectly by Prohibited Person;  (ii) Landlord is not (nor is it owned or controlled, directly or indirectly, by any person, group, entity or nation that is)  acting directly or indirectly for or on behalf of any Prohibited Person; and (iii) from and after the effective date of  the above-referenced Executive Order, or such other federal or state law, Landlord (and any person, group, or entity  that Landlord controls, directly or indirectly) has not conducted nor will conduct business nor has engaged nor will  engage in any transaction or dealing with any Prohibited Person in violation of the U.S. Patriot Act or any OFAC  rule or regulation, or any other Legal Requirements with respect to Prohibited Persons, including any assignment of  this Lease or any sale or other transfer of all or any portion of the Demised Premises, or the making or receiving of  any contribution of funds, goods or services, to or for the benefit of a Prohibited Person in violation of the U.S.  Patriot Act, any OFAC rule or regulation, or any rule or regulation promulgated under any other federal or state law  with respect to Prohibited Persons, including any assignment of this Lease or any sale or any other transfer of all or  any portion of the Demised Premises, or the making or receiving of any contribution of funds, goods or services, to  or for the benefit of a Prohibited Person in violation of the U.S. Patriot Act, any OFAC rule or regulation, or any  rule or regulation promulgated under any other federal or state law with respect to Prohibited Persons.  In connection  with the foregoing, it is expressly understood and agreed that the representations and warranties contained in this  Section 31.18B shall be continuing in nature and shall survive the expiration or earlier termination of this Lease.          Section 31.19  If Landlord or Tenant prevails on any cause of action or defense it asserts in any action or  proceeding  between  Landlord  and  Tenant,  the  non-prevailing  party  shall  pay  the  reasonable  attorneys’  fees  and  disbursements of the prevailing party for such action or proceeding on demand.          Section 31.20  Each of Landlord and Tenant agrees that it will not disclose the economic terms of this  Lease or  any  financial or  other document  delivered  by  the  other  party  in  connection  with  this  Lease (the  “Confidential  Terms”) to  any  Person  or  publicly  announce  the  Confidential  Terms  or  set  them  forth  in  a  “tombstone” or similar advertisement without the prior approval of the other party; provided, however, that without  such approval:  (i) either of Landlord or Tenant may disclose the Confidential Terms to such of its partners, officers,  directors  and  employees  (collectively,  “Agents”)  and  accountants,  attorneys,  brokers  and  advisors  (collectively,  “Representatives”),  in  each  case,  as  are  directly  involved  in  the  negotiation,  documentation,  administration,  performance or enforcement of this Lease or are otherwise required by the nature of their duties or responsibilities to  a party hereto to know the Confidential Terms or portions thereof (including the Board); provided, however, that (x)  any such disclosure is made only on a need-to-know basis and (y) such Agent or Representative has been advised by  such  party  of  the  confidential  nature  of  the  Confidential  Terms  and  has  agreed  with  such  party  to  maintain  the  confidentiality thereof in accordance with the terms of this Lease; provided, further, that Landlord and Tenant shall  not  be  liable  to  the  other  party  if  there  is  an  unauthorized  disclosure  by  any  such  Representative;  (ii)  either  of  Landlord  or  Tenant  may  also  disclose  the  Confidential  Terms  to  its  existing  and  potential  lenders,  investors,  purchasers or superior lessees (under an Underlying Lease) of any estate in the Land or the Building or any interest  in  either Landlord or  Tenant or  their  respective  assets,  assignees  and  subtenants,  and  may  permit  such  parties  to  disclose the Confidential Terms to the Agents or Representatives of such parties; provided, however, that (x) any  such disclosure is made only on a need-to-know basis and (y) such Agent or Representative has been advised by  such  lender,  investor,  purchaser  or  superior  lessee  of  the  confidential  nature  of  the  Confidential  Terms  and  has  agreed with such party to maintain the confidentiality thereof in accordance with the terms of this Lease; provided,  further, that Landlord and Tenant shall not be liable to the other party if there is an unauthorized disclosure by any  such Representative; (iii) any party or its Agents or Representatives may disclose the Confidential Terms pursuant to  an order of any court or administrative agency in any legal or administrative proceeding or as otherwise required by  applicable law or compulsory legal process, based on the advice of its legal counsel (in which case such party will  provide the other party with prompt notice to enable them to intervene in any such proceeding); (iv) any party or its  Agents or Representatives may disclose the Confidential Terms in connection with any legal proceeding, including  any  arbitration,  involving  enforcement  of  this  Lease  to  the  extent  that  the  Confidential  Terms  are  at  issue  in  or  otherwise  relevant  to  the  legal  proceeding  or  arbitration; and (v)  any  party  or  its  Agents  or  Representatives  may  disclose any Confidential Terms to the extent that such information becomes publicly available other than by reason  of the disclosure thereof by such party or its Agents or Representatives.                                                 -104-    NY 78267766v2 

 

                                          ARTICLE 32.                                                                               INABILITY TO PERFORM; SEVERABILITY          Section 32.01  This Lease and the obligation of Tenant to pay Fixed Rent and additional rent hereunder,  and to perform and comply with all of the other covenants and agreements hereunder on the part of Tenant to be  performed or complied with, shall in no way be affected, impaired or excused because of Landlord’s delay or failure  to perform or comply with any of the covenants and agreements hereunder on the part of Landlord to be performed  or complied with, or to furnish any service or facility, for any event of Force Majeure, except as otherwise set forth  in this Lease.          Section 32.02  If any provision of this Lease or the application thereof to any person or circumstance  shall be determined by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions of  this  Lease  or  the  application  of  such  provision  to  persons  or  circumstances  other  than  those  to  which  it  is  held  invalid  or  unenforceable shall  not  be  affected  thereby,  and  shall  be  valid  and  enforceable  to  the  fullest  extent  permitted by law.          Section 32.03  Each  covenant, agreement,  obligation  and/or  other  provision  of  this  Lease  on  Tenant’s  part  to  be  performed  shall  be  deemed  and  construed  as  a  separate  and independent  covenant  of  Tenant,  and  not  dependent on any other provision of this Lease.                                             ARTICLE 33.                                                                                      INTENTIONALLY OMITTED                                                       ARTICLE 34.                                                                                          RENEWAL OPTIONS           Section 34.01  FTI and any Related Entity or Successor Entity of FTI to whom this Lease is assigned in  accordance with the applicable provisions of this Lease (collectively referred to hereinafter as “FTI Tenant”), shall  have  two  consecutive  options  (respectively,  the  “First  Renewal  Option”  and  the  “Second  Renewal  Option”,  and  collectively, the “Renewal Options”) of five (5) years each (respectively, the “First Renewal Term” and the “Second  Renewal Term”, and collectively, the “Renewal Terms”) to extend the term of this Lease for the then entire Demised  Premises (including any offer space added to the initial Demised Premises pursuant to Articles 35 and/or 38 below).   The First Renewal Term shall commence at 12:01A.M. on the day immediately following the Expiration Date and  shall expire at midnight on the fifth (5th) anniversary of the Expiration Date or such earlier date upon which this  Lease may be terminated as provided in this Lease.  The Second Renewal Term shall commence at 12:01A.M. on  the day immediately following the expiration of the First Renewal Term and shall expire at midnight on the fifth  (5th)  anniversary  of  the  last day of  the  First  Renewal  Term  or  such  earlier  date  upon  which  this  Lease  may  be  terminated as provided in this Lease. The Renewal Options may be exercised by FTI Tenant giving Landlord notice  (the “Renewal Notice”) of FTI Tenant’s intention to renew this Lease pursuant to this Article 34 (x) in the case of  the First Renewal Term, not later than the day of the month occurring fifteen (15) months prior to the Expiration  Date that is the same day of the month as the Expiration Date (with time being of the essence), and (y) in the case of  the Second Renewal Term, not later than fifteen (15) months prior to the last day of the First Renewal Term (with  time being of the essence), and such Renewal Notice shall be deemed effective only if, on the date that FTI Tenant  shall exercise the applicable Renewal Option (the “Exercise Date”):  (i) this Lease shall not have been previously  terminated or  cancelled,  (ii)  FTI  Tenant  shall  be  in  occupancy  of  not  less  than 102,000  rentable  square  feet  (including occupancy by permitted Desk Sharing Entities) of the then Demised Premises, and (iii) FTI Tenant shall  not  be  in  default  of  any  of  the monetary  or  material  non-monetary obligations  of  Tenant  under  this  Lease (after  notice of such default shall have theretofore been given to Tenant (but subject to the provisions of Section 34.04  below) and no Event of Default shall have occurred that is then continuing (but subject to the provisions of Section  34.04  below). Time  shall  be  of  the  essence  with  respect  to  the  giving  of  the  applicable  Renewal  Notice  by  FTI  Tenant to Landlord.  Notwithstanding anything to the contrary contained in this Section 34.01, if, subsequent to the                                                 -105-    NY 78267766v2 

 

applicable Exercise Date but prior to the commencement of the applicable Renewal Term: (x) FTI Tenant (including  permitted Desk Sharing Entities) shall not be in occupancy of at least 102,000 rentable square feet of the Demised  Premises, or (y) FTI Tenant shall not be in monetary or material non-monetary default of any of the obligations of  Tenant under this Lease (after notice of such default shall have theretofore been given to Tenant, but subject to the  provisions of Section 34.04 below), then Landlord, in Landlord’s sole and absolute discretion, may elect, by notice  to FTI Tenant, to void FTI Tenant’s exercise of the Renewal Options, in which case FTI Tenant’s exercise of the  Renewal Options shall be of no force or effect, and the Lease Term shall end on the Expiration Date of the initial  term of this Lease or the First Renewal Term, as applicable, unless sooner cancelled or terminated pursuant to the  provisions of this Lease or by law.          Section 34.02  If  Tenant  shall  exercise  a  Renewal  Option  in  accordance  with  the  provisions  of  this  Article 34, then this Lease shall be extended for the then applicable Renewal Term upon all of the terms, covenants  and conditions contained in this Lease, except that: (i) during the Renewal Terms, (a) the Fixed Rent shall be the  annual Market Value Rent for the Demised Premises on (x) the Expiration Date, in the case of the First Renewal  Term,  and  (y)  the  last  day  of  the  First  Renewal  Term,  in  the  case  of  the  Second  Renewal  Term,  in  each  case,  determined as provided in Section 34.03 below, (b) the new Base Tax Amount with respect to each Renewal Term  shall  be  equal  to  the  Taxes  for the  Tax  Year  ending  immediately prior  to  the commencement  of  the  applicable  Renewal Term, and (b) the new Base Operating Year with respect to each Renewal Term shall be the Operating  Year  ending  immediately  prior  to  the  commencement  of  the  applicable  Renewal  Term,  (ii)  from  and  after  the  Exercise  Date  (but  subject  to  the  provisions  of  the  last  sentence  of  Section  34.01  above),  all  references  to  “Expiration Date” shall be deemed to refer to the last day of the First Renewal Term or the Second Renewal Term  (if the Second Renewal Option shall be exercised), as the case may be, and all references to “Lease Term” shall be  deemed to include the First Renewal Term and the Second Renewal Term (if the Second Renewal Option shall be  exercised),  (iii)  Tenant  shall  have  no  further  right  or  option  to  renew  this  Lease  or  the  term  hereof  beyond  the  Second Renewal Term (if the First Renewal Option is exercised), and (iv) all provisions of this Lease concerning the  performance by Landlord of any work, and the granting by Landlord of any monetary contribution, rent abatement  or rent credit, in connection with Tenant’s initial occupancy of the Demised Premises shall be deemed deleted.          Section 34.03                    A.     The term  “Market  Value  Rent”  shall  mean  the  annual  fair  market  rental  value of the  Demised Premises for the applicable Renewal Term as of the Determination Date (as hereinafter defined), taking  into  consideration  all  relevant  factors.   For  purposes  hereof,  the “Determination  Date”  shall  mean  the  day  immediately following the (x) Expiration Date, in the case of the First Renewal Term, and (y) last day of the First  Renewal Term, in the case of the Second Renewal Term.                  B.     The initial determination  of  Market  Value  Rent  (“Landlord’s  Determination”)  shall  be  made by Landlord and Landlord shall give notice (the “MVR Notice”) to Tenant of Landlord’s Determination at  least one year prior to the (x) the Expiration Date, in the case of the First Renewal Term, and (y) the last day of the  First Renewal Term, in the case of the Second Renewal Term.  Notwithstanding that the Determination Date shall  not  yet  have  occurred,  Landlord’s  Determination  shall  be  final  and  binding,  unless,  within sixty (60)  days  after  Landlord  shall  have  given  MVR  Notice  to  Tenant,  Tenant  delivers  to  Landlord  notice  (the  “MVR  Objection  Notice”): (i) advising Landlord that Tenant disagrees with Landlord’s Determination set forth in the MVR Notice,  and (ii) setting forth Tenant’s determination of Market Value Rent (“Tenant’s Determination”).  If Landlord and  Tenant shall fail to agree upon the Market Value Rent within forty-five (45) days after Landlord shall have received  the MVR Objection Notice, then either party shall have the right to submit the matter to arbitration by giving notice  thereof to the other party, which notice shall set forth the name and address of the arbitrator designated by the party  giving such notice.  If either party shall fail to give notice of its designation within ten (10) days after receipt of the  other party’s designation, then the first arbitrator chosen shall make the determination alone.  If each party shall  have designated its respective arbitrator then such arbitrators shall, within thirty (30) days following the designation  of  the  second  arbitrator,  make  their  determinations  of  Market  Value  Rent  by  choosing  either  Landlord’s  Determination or the Tenant’s Determination, and give notice thereof to each other and to Landlord and Tenant.   Such two arbitrators shall have twenty (20) days after the receipt of notice of each other’s determinations to confer  with  each  other  and  to  attempt  to  reach  agreement  as  to  the  determination  of  Market  Value  Rent.  If  such  two  arbitrators shall concur as to the determination of the Market Value Rent for the applicable Renewal Term, such  concurrence shall be final and binding upon Landlord and Tenant.  If such two arbitrators shall fail to concur by the                                                 -106-    NY 78267766v2 

 

end  of  said  twenty  (20)  day  period,  then  the  arbitrators  shall  forthwith  designate  a  third  arbitrator  (the  “Third  Arbitrator”).  If the two arbitrators shall fail to agree upon the designation of such Third Arbitrator within ten (10)  days, then either party may apply to the AAA for the designation of such arbitrator.  All arbitrators shall be real  estate brokers or consultants with at least fifteen (15) years of continuous experience in the business of appraising or  managing commercial  office  space or  acting  as  real  estate  agents  or  brokers of  commercial  office  space in  Comparable Buildings.  The Third Arbitrator shall conduct such hearings and investigations as the Third Arbitrator  may  deem  appropriate  and  shall,  within  thirty  (30)  days  after  his/her  designation,  select  either  Landlord’s  Determination or Tenant’s Determination (and may not select any other amount) based on which Market Value Rent  they determine is closer to the actual annual fair market rental value for the Demised Premises for the applicable  Renewal Term (the “Final Determination”).  The Final Determination shall be binding upon Landlord and Tenant.   Each party shall pay its own counsel fees and expenses, if any, in connection with any arbitration under this Article  34, including the expenses and fees of any arbitrator selected by it in accordance with the provisions of this Article,  and the parties shall share equally the expenses and fees of the Third Arbitrator and all other expenses and fees of  any such arbitration.  The arbitrators shall not have the power to add to, modify or change any of the provisions of  this Lease.                  C.     If for  any  reason  the  Market  Value  Rent  shall  not  have  been  determined  prior  to  the  commencement  of  the  applicable  Renewal  Term,  then,  until  the  Market  Value  Rent and,  accordingly,  the  Fixed  Rent, for  such  Renewal  Term  shall  have  been  finally  determined, the  Fixed  Rent payable  for  and  during  such  Renewal Term shall be equal to the Market Value Rent proposed by Landlord.  Upon final determination of the  Market Value Rent, an appropriate adjustment to the Fixed Rent for such Renewal Term shall be made reflecting  such final determination, and Landlord or Tenant, as the case may be, shall credit against installments of Fixed Rent  next coming due or pay to the other any overpayment or deficiency, as the case may be, in the payment of Fixed  Rent  for  the  period  from  the  commencement  of  the  then  applicable  Renewal  Term  to  the  date  of  such  final  determination.          Section 34.04  Notwithstanding anything to the contrary set forth in this Article 34, if, on the date that  Tenant shall deliver the Renewal Notice to Landlord for the applicable Renewal Term:                  A.      Tenant  shall  be  in  default  with  respect  to  any  of  Tenant’s monetary  or  material  non- monetary obligations under the Lease following the giving of any notice from Landlord to Tenant in respect thereof,  then Tenant’s option to exercise the applicable Renewal Option shall be deemed suspended, it being agreed that if  Tenant  cures  such monetary  or  material  non-monetary default  within  the  applicable  cure  period  set  forth  in  this  Lease, then Tenant’s right to exercise the applicable Renewal Option and any Renewal Notice theretofore delivered  to Landlord, shall automatically be deemed reinstated (even if the applicable Exercise Date has passed) but only so  long as the requirements set forth in Subsection 34.01 have been met on the date that such monetary or material non- monetary default is (and any other monetary or material non-monetary defaults are) cured by Tenant; and                  B.     an  Event  of  Default  has  occurred  and  is  continuing,  then  Tenant’s  exercise  of  the  applicable Renewal Option shall be deemed null and void and of no force or effect unless (I) Tenant cures such  Event  of  Default  within  five (5)  Business  Days  after  the  date  that  Tenant  gives  the  Renewal  Notice  to  Landlord  (without Landlord having given Tenant a notice to terminate this Lease pursuant to Article 15 hereof prior to the  date that Tenant cures such Event of Default), and (II) Landlord, in Landlord’s sole discretion, elects to accept such  cure by Tenant (and not to terminate this Lease) by giving Tenant notice thereof no later than five (5) Business Days  after the date that Tenant cures such Event of Default.           Section 34.05  Each Renewal Option granted pursuant to this Article 34 shall be deemed a personal right  limited  to  FTI  Tenant (with  subtenants  and  assignees  other  than  any Related  Entity or  Successor Entity  of  FTI  having no rights or options hereunder), and all references in this Article 34 to “Tenant” shall be deemed to refer only  to FTI Tenant.                                                  -107-    NY 78267766v2 

 

                                          ARTICLE 35.                                                                                        RIGHT OF FIRST OFFER           Section 35.01                    A.     Provided that (i) this Lease shall not have been terminated or cancelled, (ii) Tenant shall  not then be in monetary or material non-monetary default under this Lease (after notice of such default shall have  theretofore been given to Tenant, but subject to the provisions of Subsection 35.02A below) and no Event of Default  shall  have occurred  that  is  then  continuing  (but  subject  to  the  provisions  of  Subsection  35.02A below), (iii)  FTI  Tenant, including permitted Desk Sharing Entities, shall occupy at least 108,000 rentable square feet of the Demised  Premises,  and  (iv)  Tenant  is  then  leasing  at  least 120,720  rentable  square  feet of  the 7-21  Condominium (the  conditions set forth in clauses (iii) and (iv) collectively, the “Occupancy Conditions” and the conditions set forth in  clauses (i) – (iv), collectively, the “ROFO Conditions”), then the first time during the Third Offer Period (x) that any  Offer Space becomes Available, or (y) Landlord reasonably anticipates that within the next nine (9) months (or three  (3) months in the case of an early termination of any prior tenant’s or occupant’s lease or occupancy agreement), but  in no event later than the last day of the Third Offer Period, any Offer Space will become Available, Landlord, prior  to offering or leasing such space to any third party shall give to Tenant notice (an “Offer Notice”), specifying (a) the  Offer  Space (including  the  rentable  square  footage  thereof) that  is  Available  or  that  Landlord  so  reasonably  anticipates will become Available within the Offer Availability Period, (b) the Offer Space MVR, (c) the date or  estimated date that the Offer Space has or shall become Available (the “Target Offer Space Inclusion Date”), (d)  Tenant’s Tax Share and Tenant’s Operating Share with respect to the Offer Space, which shall each be determined  in accordance with Landlord’s then current measurement standards for the Building, (e) a statement that the term of  the lease with respect to the Offer Space shall be co-terminus with the Lease Term for the then Demised Premises,  and  (f)  such  other  matters  as  Landlord  may  reasonably  deem  appropriate  for  such  Offer  Notice.  Landlord  shall  comply  with  the  provisions  set  forth on Schedule 1-4,  clause B attached  hereto  with  respect  to  the  priority  of  Tenant’s rights hereunder.                   B.     Provided that the ROFO Conditions are then satisfied, then the first time during the Third  Offer Period that any Contiguous Remainder Space becomes Available (and free of any of the rights superior to  Tenant set forth in  clauses (1) (2) and (3) of Schedule 1-4, clause B), Landlord, prior to leasing such Remainder  Space to any third party that is not then a tenant or occupant of any Landlord Owned Space, shall give to Tenant an  Offer Notice with respect to the Contiguous Remainder Space that has becomes Available as aforesaid.                     C.     Tenant acknowledges and agrees that Landlord has made no representation to Tenant as  to whether or when any Offer Space or Contiguous Remainder Space will become Available, and that Landlord has  no obligation to Tenant to cause any Offer Space or Contiguous Remainder Space to become Available.            Section 35.02                    A.                              (i)     Subject  to  the  provisions  of  this  Subsection  35.02A(i) and  Subsection  35.02B  below,  provided  that, on  the date that  Tenant  exercises  the  Offer  Space  Option,  all  of the  ROFO  Conditions  are  satisfied, Tenant shall have the one-time option (the “Offer Space Option”), exercisable by notice (an “Acceptance  Notice”) given to Landlord on or before the date that is thirty (30) days after delivery of the Offer Notice to Tenant  (with time being of the essence) (the “Outside Exercise Date”) to add all (but not less than all) of the Offer Space to  the Demised Premises; provided, however, that if (1) Tenant is in monetary or material non-monetary default (after  Tenant  shall  have  theretofore  been  given  notice  of  any  such  default)  as  of  the  Outside  Exercise  Date, Tenant  is  entitled to a cure period under the express provisions of this Lease with respect to such monetary or material non- monetary default, and such cure period has not expired as of the Outside Exercise Date, then Tenant shall be entitled  to deliver the Acceptance Notice to Landlord on the Outside Exercise Date, the effectiveness of which notice shall  be subject to Tenant’s cure of such monetary or material non-monetary default (and any other monetary or material  non-monetary default under this Lease (after notice of such other monetary or material non-monetary default shall  have  been  given  to  Tenant)  occurring  subsequent  to  the  Outside  Exercise  Date)  prior  to  the  earlier  of  (x)  the  expiration  of  the  applicable  cure  period,  and  (y)  the  Offer  Space  Inclusion Date (with  such  earlier  date  being                                                 -108-    NY 78267766v2 

 

sometimes hereinafter referred to as the “Outside Exercise Cure Date”), and which Acceptance Notice (and Tenant’s  exercise  of  the  Offer  Space  Option)  shall  be  deemed  null and void  in  the  event  that  Tenant  fails  to  cure  such  monetary  or  material  non-monetary default  (and  any  other monetary  or  material  non-monetary default  occurring  subsequent  to  the  Outside  Exercise  Date  of  which  notice  shall  have  been  given  to  Tenant)  before  the  Outside  Exercise Cure Date, and (2) an Event of Default has occurred and is continuing, then Tenant’s exercise of the Offer  Space Option shall be deemed null and void and of no force or effect unless (I) Tenant cures such Event of Default  within five (5) Business Days after the date that Tenant gives the Acceptance Notice to Landlord (without Landlord  having given Tenant a notice to terminate this Lease pursuant to Article 15 hereof prior to the date that Tenant cures  such Event of Default), and (II) Landlord, in Landlord’s sole discretion, elects to accept such cure by Tenant (and  not to terminate this Lease) by giving Tenant notice thereof no later than five (5) Business Days after the date that  Tenant cures such Event of Default.                           (ii)    Subject to the provisions of this Subsection 35.02A(ii) and Subsection 35.02B  below,  provided  that,  on  the  date  that  Tenant  exercises  the Additional Offer  Space  Option,  all  of  the  ROFO  Conditions are satisfied, Tenant shall have the one-time option (the “Additional Offer Space Option”) to add all (but  not less than all) of the Contiguous Remainder Space to the Demised Premises, in the condition required pursuant to  Subsection 35.03A below.  Tenant’s exercise of the Additional Offer Space Option shall be in accordance with the  terms and conditions of Subsection 35.02A(i) as the same are applicable to the Additional Offer Space Option.                  B.     Notwithstanding anything to the contrary set forth in this Article 35 (but subject to the  provisions of the last sentence of this Subsection 35.02B), if, on the Offer Space Inclusion Date, all of the ROFO  Conditions  are  not  satisfied,  the  Acceptance  Notice  (and  Tenant’s  exercise  of  the  Offer  Space  Option)  shall  be  deemed  null  and  void; provided, however,  that  Landlord  may,  in  the  exercise  of  Landlord’s  sole  and  absolute  discretion (but without waiving any such monetary or material non-monetary default by Tenant under this Lease),  elect to accept Tenant’s exercise of the Offer Space Option, or Additional Offer Space Option, as applicable, and  deliver possession of the Offer Space, or the Contiguous Remainder Space, as applicable, to Tenant on the Offer  Space Inclusion Date notwithstanding Tenant’s failure to satisfy any of the ROFO Conditions.           Section 35.03                    A.     Subject to Subsection 35.03B below, if Tenant timely delivers the Acceptance Notice to  Landlord,  then,  on  the  date  on  which  Landlord  delivers  vacant  possession  of  the  Offer  Space or  the Contiguous  Remainder Space, as applicable, to Tenant (the “Offer Space Inclusion Date”), which Offer Space Inclusion Date  shall not be earlier than the Target Offer Space Inclusion Date (unless consented to by Tenant), such Offer Space or  Contiguous Remainder Space, as applicable, shall become part of the Demised Premises, upon all of the terms and  conditions  set  forth  in  the  Lease,  except  that, (i)  the  Fixed  Rent  shall  be  the  Offer  Space  MVR  (provided  that  Tenant’s obligation to pay Fixed Rent for the Offer Space or Contiguous Remainder Space, as applicable, shall not  commence  until  the  Offer  Space  Inclusion  Date),  (ii) the  term  of  the  Lease  with  respect  to  the  Offer  Space or  Contiguous Remainder Space, as applicable, shall be co-terminus with the Lease Term, (iii) Tenant’s Tax Share with  respect to the Offer Space or Contiguous Remainder Space, as applicable, shall be the percentage set forth in the  Offer  Notice  and  the  Base  Tax  Amount  with  respect  to  the  Offer  Space or Contiguous  Remainder  Space,  as  applicable, shall be the Taxes payable for the Tax Year ending immediately prior to the Offer Space Inclusion Date;  (iv) Tenant’s Operating Share with respect to the Offer Space or Contiguous Remainder Space, as applicable, shall  be  the  percentage  set  forth  in  the  Offer  Notice  and  the  Base Operating  Year  with  respect  to  the  Offer  Space or  Contiguous  Remainder  Space,  as  applicable, shall  be  the  Operating  Expenses  for  the  Operating  Year  ending  immediately prior to the Offer Space Inclusion Date; (v) unless otherwise set forth in the Offer Notice, Landlord  shall not be required to perform any work, pay any sums or render any services to make the Building or the Offer  Space or Contiguous Remainder Space, as applicable, ready for Tenant’s use or occupancy (it being understood that  the above shall not negate Landlord’s obligation to provide the services set forth in Article 18 of this Lease to the  extent  applicable  to  the  Offer  Space or Contiguous  Remainder  Space,  as  applicable),  Landlord  shall  deliver  and  Tenant  shall  accept  the  Offer  Space or Contiguous  Remainder  Space,  as  applicable, in  its  “as  is”  condition (but  vacant, broom-clean, free of any furniture, equipment and personal property of third parties, free of any then present  possessory rights  of  other  tenants  or  occupants, and  with  all  Building Systems  serving  the  Offer  Space or  Contiguous Remainder Space, as applicable, in good working order) as of the Offer Space Inclusion Date; and (vi)  as may be otherwise set forth in the Offer Notice.  Once Landlord delivers possession of the Offer Space or the  Contiguous  Remainder  Space,  as  applicable,  to  Tenant  in  accordance  with  the  terms  of  this  Subsection  35.03A,                                                 -109-    NY 78267766v2 

 

Tenant shall not have any further Offer Space Option and/or Additional Offer Space Option, as applicable, and the  Offer Space Option and/or the Additional Offer Space Option, as applicable, shall be deemed to be null and void and  of no further force or effect, except that if Tenant revokes its Acceptance Notice with respect to the Offer Space or  the  Contiguous  Remainder  Space,  as  applicable, pursuant  to  the  terms and  conditions of  Section  35.04  hereof,  Tenant shall again be entitled to the Offer Space Option or the Additional Offer Space Option, as applicable (as if  Tenant  had  not  delivered  an  Acceptance  Notice  with  respect  to  the  Offer  Space Option  or  the  Additional Offer  Space Option, as applicable).                  B.     In the event that upon the Target Offer Space Inclusion Date, five (5) years or less shall  remain until the Expiration Date of this Lease (as the same may have then been extended pursuant to the terms of  this Lease), Tenant shall only have the right to exercise its Offer Space Option or Additional Offer Space Option, as  applicable, if, simultaneously with Tenant’s delivery of the Acceptance Notice, Tenant shall also deliver a Renewal  Notice to Landlord. If Tenant fails to deliver the Renewal Notice to Landlord simultaneously with the delivery of the  Acceptance  Notice,  then  Tenant’s  Acceptance  Notice  (and  Tenant’s  exercise  of  the  Offer  Space  Option or  the  Additional Offer Space Option, as applicable) shall be deemed null and void and of no further force or effect as to  such Offer Space or Contiguous Remainder Space, as applicable.             Section 35.04  Landlord  shall  use  commercially  reasonable  efforts  to  deliver  possession  of  the  Offer  Space or Contiguous  Remainder  Space, as  applicable, to  Tenant  on  the  Target  Offer  Space  Inclusion  Date.   If  Landlord shall be unable to deliver possession of the Offer Space or Contiguous Remainder Space, as applicable, to  Tenant for any reason on or before the Target Offer Space Inclusion Date as set forth in the Offer Notice, the Offer  Space Inclusion Date shall be deferred to and shall be the date on which the Offer Space is available for Tenant’s  occupancy as provided in Subsection 35.03A above, and Landlord shall have no liability to Tenant for such failure  to deliver possession on the Target Offer Space Inclusion Date, and Landlord shall continue to use commercially  reasonable  efforts  to  deliver  possession  of  the  Offer  Space or Contiguous  Remainder  Space,  as  applicable, to  Tenant;  provided,  however, that if  Tenant  delivers  a notice to  Landlord  requesting  that  Landlord  commence  holdover  litigation  proceedings  against  the  current  tenant  or  occupant  of  the  Offer  Space or  the  Contiguous  Remainder Space, as applicable (the “Offer Space Holdover Proceeding Notice”), then Landlord shall, within thirty  (30) days after receipt of the Offer Space Holdover Proceeding Notice from Tenant, commence holdover litigation  proceedings against such tenant or occupant if such holdover tenant or occupant shall not have vacated the Offer  Space or the Contiguous Remainder Space, as applicable, by the end of such thirty (30) day period.  If the Offer  Space Inclusion Date does not occur on or prior to the one hundred eightieth (180th) day following the Target Offer  Space Inclusion Date (the “Inclusion Outside Date”), then Tenant, at Tenant’s sole election, may elect to revoke the  subject  Acceptance  Notice  by  giving  notice  thereof  to  Landlord  no  later  than the tenth  (10th)  Business  Day  following the Inclusion Outside Date (with time being of the essence), in which event the applicable Offer Space  Option or Additional Offer Space Option, as applicable shall be null and void and of no further force or effect as of  the  date  set  forth  in  Tenant’s  written  revocation  of  the  Acceptance  Notice  (which  shall  be  the  date  that  Tenant  delivers such revocation to Landlord), and Landlord shall have no further obligation with respect to offering any  Offer Space or the Contiguous Remainder Space, as applicable to Tenant, it being agreed that, if Tenant does not  elect  to  revoke  the  Acceptance  Notice  by  giving  such  notice  to  Landlord  on  or  before  the  date  that  is  ten  (10)  Business  Days  after  the Inclusion  Outside Date,  then  Landlord shall diligently  and  in  good  faith continue  the  holdover litigation proceedings against the current tenant or occupant of the Offer Space until the occurrence of the  Offer  Space  Inclusion  Date.   This  Section  35.04 constitutes  “an  express  provision  to the contrary”  within  the  meaning of Section 223-a of the New York Real Property Law and any other law of like import now or hereafter in  effect.           Section 35.05  Subject to the provisions of the immediately following sentence, if Tenant fails to timely  deliver the Acceptance Notice, then (a) Tenant shall no longer be entitled to exercise the Offer Space Option, or the  Additional Offer Space Option, as applicable, under this Article 35 and Tenant’s rights with respect to the Offer  Space, or the Contiguous Remainder Space, as applicable, as set forth in this Article 35 shall be null and void and of  no further force or effect, and (b) Landlord may enter into one or more leases of (or other occupancy agreements  relating to) the Offer Space or the Contiguous Remainder Space, as applicable, with any third parties on such terms  and conditions as Landlord shall determine, and Landlord may, subject to the terms of this Lease, grant any other  tenants or occupants rights with respect to the Offer Space or the Contiguous Remainder Space, as applicable, as  Landlord shall determine.  Notwithstanding the foregoing, in the event that (a) Tenant fails timely to deliver such  Acceptance Notice and (b) thereafter, either (x) Landlord fails to execute and deliver a lease or other occupancy                                                 -110-    NY 78267766v2 

 

agreements with respect to the Offer Space or the Contiguous Remainder Space, as applicable, to which the Offer  Notice relates within twelve (12) months after the Outside Exercise Date applicable to such Offer Notice, or (y) the  net effective rent (determined as described below) that Landlord desires to seek, or is accepting from another tenant  or other occupant, for such Offer Space or Contiguous Remainder Space, as applicable, is less than the Offer Space  MVR Threshold, then Landlord shall again offer such Offer Space or Contiguous Remainder Space, as applicable, to  Tenant pursuant to the provisions of this Article 35 before leasing the same to a third party (other than, with respect  to  the  Contiguous  Remainder  Space,  any  third  party  to  which  Landlord  is  permitted  to lease  the  Contiguous  Remainder Space pursuant to the terms of this Article 35 without first offering the same to Tenant).  For purposes of  this Article 35, the term “net effective rent” shall mean the net present value of the aggregate of all the gross rent  and additional rent (including base years and escalations for Operating Expenses and Taxes) of any nature payable  under  a  third  party  lease  entered  into pursuant  to  the  terms  of  the  Offer  Notice or  contemplated  by  Landlord,  discounted (using a discount rate equal to the Prime Rate and calculated on a monthly basis) from the date such  payment would have been made under such lease following the Offer Space Inclusion Date or otherwise pursuant to  the terms of such lease, after deducting therefrom the amount of all inducements (such as, by way of example only,  the amount of all out-of-pocket work allowances, rent abatements or other incentives or concessions to be paid by  Landlord as an inducement to enter into the applicable lease solely to the extent the same is allocable to the Offer  Space or the Contiguous Remainder Space, as applicable, and the term covered by the Offer Notice), discounted  (using  a  discount  rate  equal  to  the  Prime Rate and  calculated  on  a  monthly  basis)  from  the  date  that  such  inducements were  to  have  been  given  under  the  proposed  lease  following  the  Offer  Space  Inclusion  Date,  or  otherwise pursuant to the terms of such lease.            Section 35.06  Promptly after the occurrence of the Offer Space Inclusion Date, Landlord and Tenant  shall confirm the occurrence thereof and the inclusion of the Offer Space or the Contiguous Remainder Space, as  applicable, in  the  Demised  Premises  by  executing  an  instrument  reasonably  satisfactory  to  Landlord  and  Tenant;  provided, however, that (i) failure by Landlord or Tenant to execute such instrument shall not affect the inclusion of  the Offer Space, or the Contiguous Remainder Space, as applicable, in the Demised Premises in accordance with  this Article 35, and (ii) the Fixed Rent shall be the Offer Space MVR on the Offer Space Inclusion Date, determined  as provided in Section 35.07 below.          Section 35.07  A.      The term “Offer Space MVR” shall mean the annual fair market rental value of  the Offer Space, or the Contiguous Remainder Space, as applicable, as of the Offer Space Inclusion Date, taking into  consideration all relevant factors.                  B.     The Offer Space MVR shall be determined in accordance with the provisions of Section  34.03B above, except that (i) all references in said Section 34.03B to (a) “Market Value Rent” shall be deemed to  refer  to  “Offer  Space  MVR”,  (b) “MVR  Notice”  shall  be deemed  to  refer  to  “Offer  Notice”;  (c)  “Determination  Date” shall be deemed to refer to the “Offer Space Inclusion Date”; (d) “Demised Premises” shall be deemed to  refer to “Offer Space” or the “Contiguous Remainder Space”, as applicable, and (e) “for the applicable Renewal  Term” and similar terms shall be deemed deleted; and (ii) Landlord’s Determination shall be set forth in the Offer  Notice and all time periods set forth in Article 34 for delivery by Landlord of Landlord’s Determination shall be  deemed inoperative.                  C.     If for any reason the Offer Space MVR shall not have been determined prior to the Offer   Space Inclusion Date, then, until the Offer Space MVR and, accordingly, the Fixed Rent, shall have been finally  determined, the Fixed Rent payable for the Offer Space or the Contiguous Remainder Space, as applicable, shall be  equal to the Fixed Rent then in effect for the Demised Premises (pro-rated per rentable square footage of the Offer  Space or  the Contiguous  Remainder  Space,  as  applicable) on  the  Offer  Space  Inclusion  Date.   Upon  final  determination of the Offer Space MVR, an appropriate adjustment to the Fixed Rent shall be made reflecting such  final determination, and Landlord or Tenant, as the case may be, shall credit against installments of Fixed Rent next  coming due or pay to the other any overpayment or deficiency, as the case may be, in the payment of Fixed Rent for  the period from the Offer Space Inclusion Date to the date of such final determination.          Section 35.08  The rights of first offer granted pursuant to this Article 35, including the provisions of  Schedule 1-4 attached hereto, shall be deemed a personal right limited to FTI Tenant (with subtenants and assignees  other than any Related Entity or Successor Entity of FTI having no rights or options hereunder), and all references in  this Article 35 and Schedule 1-4 to “Tenant” shall be deemed to refer only to FTI Tenant.                                                 -111-    NY 78267766v2 

 

                                          ARTICLE 36.                                                                                       ADDITIONAL COVENANTS          Section 36.01  Except to the extent part of Landlord’s Work, Landlord’s Additional Work or otherwise  expressly provided in this Lease, Tenant, at Tenant’s own cost and expense, shall install and maintain all equipment  and appliances (without duplication of any such equipment or appliances that Landlord has installed and is obligated  to maintain pursuant to the express provisions of this Lease) as may be required by, and otherwise to fully comply  with, all applicable Legal Requirements and codes and regulations (including, but not limited to, the New York City  Fire  Department,  the  New  York  Board  of  Fire  Underwriters  and  Fire  Insurance  Rating  Organization),  and  as  required  by  Landlord’s  or  the  Board’s  insurers  by  reason  of  Tenant’s  specific  business  operations  (in  contradistinction to mere use of the Demised Premises for general office purposes), including fire alarms, smoke  alarms,  fire  extinguisher  appliances  and  sprinkler  systems.   Tenant  shall  have  the  right  to  connect  the  foregoing  systems to the Building’s central system serving the Demised Premises (which central system shall be maintained by  Landlord  in  accordance  with  the  provisions  of  this  Lease),  provided  that  such  work  shall  be  performed  in  accordance with the provisions of Article 5 above.            Section 36.02  Tenant shall, at Tenant’s own cost and expense, use all commercially reasonable efforts  to keep the Demised Premises free and clear of rats, mice, insects and other vermin.  In furtherance thereof, Tenant  shall employ an exterminator for extermination of, said animals and insects.  At all times during the Lease Term, at  reasonable times and upon reasonable prior notice to Tenant, Landlord or Landlord’s designees shall have the right  to  inspect  the  Demised  Premises  for  purposes  of  verifying  Tenant’s  compliance  herewith.   If,  in  Landlord’s  reasonable judgment, Tenant shall fail to comply with the provisions of this Section 36.02, Landlord shall have the  right to self-help pursuant to the provisions of Article 16 hereof.           Section 36.03  Without  limiting  any  of  the other provisions  of  this  Lease,  Tenant  shall not: (i) use  or  permit  the  use  of  the  Demised  Premises  or  any  part  thereof  in  any  way  which  would  violate  the  then  existing  certificate of occupancy for the Demised Premises or the Building, (ii) suffer or permit the Demised Premises or any  part thereof to be used in any manner or anything to be done therein or anything to be brought into or kept therein  which  would,  in  Landlord’s  reasonable  judgment,  in  any  way  unreasonably  impair  or  interfere  with  any  of  the  Building services, including the heating, cleaning or other servicing of the Building or the Demised Premises, or (iii)  subject  to  Section 6.03  above,  do  or  permit  any  act  or  thing  to  be  done  in  or  to  the  Demised  Premises  which  is  contrary to law, or which will invalidate public liability, fire or other policies of insurance at any time carried by or  for  the  benefit  of  Landlord  with  respect  to  the  Demised  Premises  or  the  Building  of  which  Tenant  shall  have  received notice (but only if prudent owners of first-class office buildings in midtown Manhattan generally require  their  tenants  to  adhere  to  the  requirements  of  such  insurance  policies),  nor  shall  Tenant  keep  anything  in  the  Demised Premises prohibited by the Fire Department, any Insurance Board or other authority having jurisdiction, it  being agreed that Tenant’s use of the Demised Premises for ordinary office use shall not, in and of itself, violate the  provisions of this Section 36.03.  For the avoidance of doubt, in the event of any conflict between the terms of this  Section 36.03 and the specific provisions of any other Article of this Lease, the specific provisions of such other  Article shall control.            Section 36.04  Tenant  acknowledges  that  Landlord  is  executing  this  Lease  in  reliance  upon  the  covenants contained in this Article 36, which are a material inducement to Landlord to execute this Lease.                                             ARTICLE 37.                                                                                            COUNTERPARTS          Section 37.01  This Lease may be executed and delivered in any number of counterparts, each of which  so  executed  and  delivered  shall  be  deemed  to  be  an  original  and  all  of  which  shall  constitute  one  and  the  same  instrument.  To facilitate execution of this Lease, the parties may exchange counterparts of this Lease by facsimile  or electronic mail (e-mail) (which shall include, but not be limited to, electronic attachments in ‘pdf’ or ‘tif’ formats  containing counterparts of the signature page to this Lease), which shall be effective as original signature pages for  all purposes.  Following such execution of this Lease, each party shall deliver to the other an actual signed original  counterpart of this Lease.                                                 -112-    NY 78267766v2 

 

                                          ARTICLE 38.                                                                             RIGHTS OF EXPANSION AND FIRST REFUSAL                   A.     Provided that (i) this Lease shall not have been terminated or cancelled, (ii) Tenant shall  not be in default with respect to any of Tenant’s monetary or material non-monetary obligations under this Lease  (after notice of such default shall have theretofore been given to Tenant, but subject to the provisions of Subsection  38.02D below) and (iii) all of the Occupancy Conditions are then satisfied, Tenant shall have the option during the  First Offer Period (which option may solely be exercised one (1) time with respect to each of the First Lower Floor  Offer  Space,  the  Second Lower  Floor Offer  Space  and  the Upper  Floor Offer  Space)  (the  “Expansion  Space  Options”) to lease (1) the First Lower Floor Offer Space, (2) the Second Lower Floor Offer Space, and/or (3) the  Upper Floor Offer Space (the Upper Floor Offer Space, the First Lower Floor Offer Space and the Second Lower  Floor Offer Space, individually or collectively as the context may require, are referred to herein as the “Expansion  Space”), but  only  by  giving  Landlord notice (the  “Expansion  Acceptance  Notice”) not  later  than  the  applicable  Expansion  Notice  Date, which  Expansion Acceptance Notice  shall comply  with  the  provisions  of  Schedule  1-5,  clause B.  Time shall be of the essence with respect to the giving of the applicable Expansion Acceptance Notice by  Tenant  to  Landlord.   If  Tenant  shall  timely exercise  the  aforesaid  Expansion  Space  Option(s),  then (x)  Landlord  shall,  within ten  (10) days  following  Tenant’s  delivery  of  the Expansion Acceptance  Notice, deliver notice (the  “Expansion  Target  Delivery  Notice”)  to  Tenant  of the  date  or  estimated  date on  which Landlord  shall  deliver  possession  of  the applicable  Expansion  Space  to  Tenant (the  “Target  Expansion  Space  Commencement  Date”),  vacant, broom-clean, free of any furniture, equipment and personal property of third parties, free of any then present  possessory rights of other tenants or occupants, and with all Building Systems serving the Expansion Space in good  working  order (delivery  of possession  in  such  condition  being  referred  to herein  as  “Vacant  Possession”), which  Target Expansion Space Commencement Date shall be no less than ninety (90) days and no more than one hundred  twenty (120) days after the date on which Landlord shall have delivered the applicable Expansion Target Delivery  Notice  to Tenant,  and  (y)  the applicable Expansion  Space  shall  be  added  to  and  become  part  of  the  Demised  Premises on the terms set forth in Subsection 38.01C below, as of the date on which Landlord shall deliver Vacant  Possession of the applicable Expansion Space to Tenant (the “Expansion Space Commencement Date”).                    B.     If Tenant shall fail to deliver the applicable Expansion Acceptance Notice to Landlord on  or before the applicable Expansion Notice Date, then the  Expansion Space Option with respect to the applicable  Expansion Space shall be deemed revoked, null and void, and of no further force and effect, and Landlord may,  subject to the provisions of Section 38.02 below and Article 35 hereof, thereafter proceed with the leasing of such  Expansion Space to any person, upon any terms and conditions desired by Landlord (except that, if (i) Landlord  delivers to Tenant the Expansion Option Acceleration Notice, (ii) Tenant does not timely exercise the Expansion  Option as provided in Subsection 38.01A above, and (iii) Landlord fails to consummate a lease with the Offering  Party, then Tenant shall again have the Expansion Option with respect to the Upper Floor Offer Space as set forth in  Subsection 38.01A above, including the provisions of Schedule 1-5 attached hereto); provided, however, that if (I)  (a) Tenant is in monetary or material non-monetary default (after Tenant shall have theretofore been given notice of  any  such  default)  as of  the Expansion  Notice  Date,  (b)  Tenant  is  entitled  to  a  cure  period  under  the  express  provisions of this Lease with respect to such default, and (c) such cure period has not expired as of the Expansion  Notice Date, then Tenant shall be entitled to deliver the applicable Expansion Acceptance Notice to Landlord on or  prior  to the  Expansion  Notice  Date,  the  effectiveness  of which Expansion  Acceptance  Notice shall  be  subject  to  Tenant’s cure of such monetary or material non-monetary default (and any other monetary or material non-monetary  default under this Lease (after notice of such other monetary or material non-monetary default shall have been given  to  Tenant)  occurring  subsequent  to  the Expansion  Notice Date)  prior  to  the earlier  of  (x)  the expiration  of the  applicable  cure  period,  and  (y)  the  Target  Expansion  Space  Commencement  Date (with  such earlier  date being  sometimes  hereinafter  referred  to  as  the  “Expansion Outside  Exercise  Cure  Date”), and which  exercise  of  the  applicable Expansion Option) shall be deemed null and void in the event that Tenant fails to cure such monetary or  material non-monetary default (and any other monetary or material non-monetary default occurring subsequent to  the Expansion Notice Date of which notice shall have been given to Tenant) before the Expansion Outside Exercise  Cure Date, or (II) an Event of Default has occurred and is continuing, then Tenant’s exercise of Expansion Option  shall be deemed null and void and of no force or effect unless (I) Tenant cures such Event of Default within five (5)  Business Days after the date that Tenant delivers the Expansion Acceptance Notice to Landlord (without Landlord  having given Tenant a notice to terminate this Lease pursuant to Article 15 hereof prior to the date that Tenant cures  such Event of Default), and (II) Landlord, in Landlord’s sole discretion, elects to accept such cure by Tenant (and                                                 -113-    NY 78267766v2 

 

not to terminate this Lease) by giving Tenant notice thereof no later than five (5) Business Days after the date that  Tenant cures such Event of Default.                    C.     Tenant’s  lease  of  the  applicable  Expansion  Space  shall  be on  the  terms  set  forth  on  Schedule 1-5, clause D.                   D.     The term “Expansion Space MVR” shall mean the annual fair market rental value of the  applicable Expansion Space as of the applicable Expansion Space Commencement Date, taking into consideration  all  relevant  factors.  The Expansion  Space MVR  shall  be  determined  in  accordance  with the  provisions  of  Subsection 34.03B above, except that (i) all references in said Subsection 34.03B to (a) “Market Value Rent” shall  be deemed to refer to “Expansion Space MVR”, (b) the initial determination of the Expansion Space MVR shall be  made  by  Landlord, with notice  (the  “Expansion  Space  MVR  Notice”)  given  by  Landlord  to  Tenant stating  Landlord's  initial  determination  of  the Expansion  Space MVR  on  or  before  the  sixtieth  (60th)  day  following  Landlord's receipt of the applicable Expansion Acceptance Notice, and all references to the “MVR Notice” shall be  deemed to refer to the “Expansion Space MVR Notice”, (c) “Determination Date” shall be deemed to refer to the  “Extension  Space  Commencement  Date”, (d)  “Demised  Premises”  shall  be  deemed  to  refer  to the  applicable  “Expansion Space”, and (e) “for the applicable Renewal Term” and similar terms shall be deemed deleted; and (ii)  Landlord’s Determination shall be set forth in the Expansion Space MVR Notice, and all time periods set forth in  Article 34 for delivery by Landlord of Landlord’s Determination shall be deemed inoperative.  If for any reason the  Expansion Space MVR shall  not have been determined prior to the applicable Expansion Space Commencement  Date, then, until the Expansion Space MVR and, accordingly, the Fixed Rent, shall have been finally determined,  the Fixed Rent payable for the applicable Expansion Space shall be equal to the Fixed Rent then in effect for the  Demised  Premises (pro-rated  per  rentable  square  foot  of  the  applicable  Expansion  Space) on  the applicable  Expansion Space Commencement Date.  Upon final determination of the Expansion Space MVR, an appropriate  adjustment to the Fixed Rent for the applicable Expansion Space shall be made reflecting such final determination,  and Landlord or Tenant, as the case may be, shall credit against installments of Rent next coming due or pay to the  other any overpayment or deficiency, as the case may be, in the payment of Fixed Rent for the applicable Expansion  Space for  the  period  from  the applicable  Expansion  Space  Commencement  Date to  the  date  of  such  final  determination.                  E.     Landlord  shall  use  commercially  reasonable  efforts  to  deliver  possession  of  the  applicable Expansion Space to Tenant on the Target Expansion Space Commencement Date. If Landlord shall be  unable to deliver possession of the Expansion Space to Tenant on the Target Expansion Space Commencement Date  for any reason beyond Landlord's control, the Expansion Space Commencement Date shall be deferred to and shall  be the date on which the applicable Expansion Space is available for Tenant’s occupancy as provided in Section  38.01A above (provided that such delay is not caused solely by Tenant). The provisions of this Section 38.01 are  intended to constitute "an express provision to the contrary" within the meaning of Section 223-a of the New York  Real Property Law.           Section 38.02                    A.     Provided that (i) this Lease shall not have been terminated or cancelled, (ii) Tenant shall  not  then  be  in default of  any  of  Tenant’s  monetary or material  non-monetary obligations  under  this  Lease (after  notice of such monetary or material non-monetary default shall have theretofore been given to Tenant, but subject to  the proviso at the end of Subsection 38.02D below) and no Event of Default has occurred that is then continuing (but  subject to the proviso at the end of Subsection 38.02D below), and (iii) all of the Occupancy Conditions are then  satisfied, Tenant shall have and is hereby granted a one-time right of first refusal during the Second Offer Period  with respect to each ROFR Space, subject to, and in accordance with, the terms and conditions of this Section 38.02.                    B.     If Landlord and a prospective tenant (the "Prospective Tenant") shall, directly or through  agents  or  brokers, come  to  an  agreement  on  economic  terms  (the  “Prospective  LOI  Terms”) with  respect  to  a  proposed lease of (i) the Upper Floor Offer Space, (ii) the First Lower Floor Offer Space, and/or (ii) the Second  Lower  Floor Offer  Space,  in each  case,  individually  or  as  part  of  a  Large  Block  Transaction (each,  a  “ROFR  Space”), prior to the expiration of the Second Offer Period, then Landlord shall promptly give Tenant notice thereof  (the "First Refusal Notice"), together with a copy of (a) the Prospective LOI Terms, and (b) a term sheet, which  contains  economic  terms identical  to  the Prospective  LOI  Terms,  except  for  changes  in  the  name,  address  and                                                 -114-    NY 78267766v2 

 

reference to the tenant (revised to reflect that Tenant will be the tenant), and any other changes which are necessary  or  appropriate  to  reflect  the  fact  that  Tenant  is  the  proposed  tenant,  as  opposed  to  the  Prospective  Tenant (the  “Tenant Term Sheet”).  Landlord shall not consummate such lease to the Prospective Tenant unless and until (x)  Tenant shall have notified Landlord that Tenant does not intend to exercise the First Refusal Right, or (y) Tenant  shall fail to timely exercise the First Refusal Right hereinafter set forth.  The floor plans for the ROFR Space are  attached hereto as Exhibit “P”.                   C.     (i)     Upon receipt of the First Refusal Notice, Tenant shall have the right (the "First  Refusal  Right")  to  lease  the  applicable  ROFR  Space  described  in  the Tenant  Term  Sheet (the  "First  Refusal  Premises") on the terms and conditions as set forth in Subsections 38.01C(ii) and 38.01C(iii) below, which terms  and  conditions  will  be  reflected  in  the  Tenant  Term  Sheet.  Notwithstanding  anything  to  the  contrary  contained  herein, if the applicable ROFR Space is being offered to a Perspective Tenant as part of a Large Block Transaction,  the  First  Refusal  Premises shall  be  deemed  to  include  all  (but  not  less  than  all)  of  the  space  set  forth  in  the  Prospective LOI Terms.                         (ii)    If the term of the lease described in the Prospective LOI Terms (with such lease  being referred to herein as the "First Refusal Lease") shall be longer than the then prevailing Lease Term, then the  term  of  the  First  Refusal  Lease  shall  be  shortened  to  be  co-terminus  with the  then  prevailing  Lease  Term  and  Tenant’s lease of the First Refusal Premises shall be on the terms set forth in the Prospective LOI Terms, with any  rent  concessions,  work  contributions  or  other  economic  concessions  being  proffered  to  the  Prospective  Tenant  pursuant to the Prospective LOI Terms proportionately reduced.                         (iii)   If the term of the First Refusal Lease shall be shorter than the then prevailing  Lease Term, then the term of the First Refusal Lease shall be as set forth on Schedule 1-5, clause E. The ROFR  MVR  shall  be  determined  in  accordance  with  the  provisions  of  Subsection  34.03B  above, except  that  (i)  all  references in said Subsection 34.03B to (a) “Market Value Rent” shall be deemed to refer to “ROFR MVR”, (b) the  initial determination of the ROFR MVR shall be made by Landlord and set forth in the Tenant Term Sheet, and all  references to the “MVR Notice” shall be deemed to refer to the “Tenant Term Sheet”, (c) “Determination Date”  shall be deemed to refer to the “ROFR Space Commencement Date”, (d) “Demised Premises” shall be deemed to  refer to the applicable “First Refusal Premises”, and (e) “for the applicable Renewal Term” and similar terms shall  be  deemed  deleted;  and  (ii)  Landlord’s  Determination  shall  be  set  forth  in  the Tenant  Term  Sheet,  and  all  time  periods set forth in Article 34 for delivery by Landlord of Landlord’s Determination shall be deemed inoperative.  If  for any reason the ROFR MVR shall not have been determined prior to the applicable ROFR Space Commencement  Date, then, until the ROFR MVR and, accordingly, the Fixed Rent and Recurring Additional Rent, shall have been  finally determined, the Fixed Rent and Recurring Additional Rent payable for the First Refusal Premises shall be  equal  to  the  Fixed  Rent and  Recurring  Additional  Rent then  in  effect  for  the  Demised  Premises (pro-rated  per  rentable square foot of the applicable First Refusal Space) on the ROFR Space Commencement Date.  Upon final  determination of the ROFR MVR, an appropriate adjustment to the Fixed Rent and Recurring Additional Rent for  the First Refusal Premises shall be made reflecting such final determination, and Landlord or Tenant, as the case  may be, shall credit against installments of Rent next coming due or pay to the other any overpayment or deficiency,  as the case may be, in the payment of Fixed Rent and Recurring Additional Rent for the First Refusal Premises for  the period from the ROFR Space Commencement Date to the date of such final determination.                  D.     If Tenant shall elect to exercise the First Refusal Right, then, within fifteen (15) Business  Days  following  delivery  to  Tenant  of  the  First  Refusal  Notice  and  the  items  set  forth  in  clauses  (a)  and  (b)  of  Subsection 38.01B above (the “ROFR Outside Exercise Date”), Tenant shall notify Landlord that Tenant wishes to  exercise the First Refusal Right, and Tenant shall execute and deliver to Landlord the Tenant Term Sheet, with time  being of the essence as to Tenant's delivery to Landlord of the executed Tenant Term Sheet.  If Tenant shall fail to  timely execute and deliver the Tenant Term Sheet to Landlord, Tenant shall be deemed to have waived the First  Refusal  Right  as  to  the  transaction  contemplated  in  such  Prospective  LOI  Terms;  provided,  however,  that  if  (a)  Tenant is in monetary or material non-monetary default (after Tenant shall have theretofore been given notice of any  such monetary or material non-monetary default) as of the ROFR Outside Exercise Date, (b) Tenant is entitled to a  cure  period  under  the  express  provisions  of  this  Lease  with  respect  to  such monetary  or  material  non-monetary  default,  and  (c)  such  cure  period  has  not  expired  as  of  the  ROFR  Outside  Exercise  Date,  then  Tenant  shall  be  entitled to deliver the executed Tenant Term Sheet to Landlord on or prior to the ROFR Outside Exercise Date, the  effectiveness  of  which Tenant  Term  Sheet shall  be  subject  to  Tenant’s  cure  of  such monetary  or  material  non-                                                -115-    NY 78267766v2 

 

monetary default (and any other monetary or material non-monetary default under this Lease (after notice of such  other monetary  or  material  non-monetary default  shall have been  given  to  Tenant)  occurring  subsequent  to  the  ROFR Outside Exercise Date) prior to the earlier of (x) the expiration of the applicable cure period, and (y) the  ROFR Space Commencement Date  (with such earlier date being sometimes hereinafter referred to as the “ROFR  Outside  Exercise  Cure  Date”),  and  which  delivery  of  the Tenant  Term  Sheet  (and  Tenant’s  exercise  of  the  First  Refusal Right) shall be deemed null and void in the event that Tenant fails to cure such monetary or material non- monetary default  (and  any  other monetary  or  material  non-monetary  default occurring  subsequent  to  the  Outside  Exercise Date of which notice shall have been given to Tenant) before the ROFR Outside Exercise Cure Date, and  (b) and an Event of Default has occurred and is continuing as of the ROFR Exercise Outside Date, then Tenant’s  exercise of the Right of First Refusal and the delivery of the Tenant Term Sheet shall be deemed null and void and  of no force or effect unless (I) Tenant cures such Event of Default within five (5) Business Days after the date that  Tenant delivers the Tenant Term Sheet to Landlord (without Landlord having given Tenant a notice to terminate this  Lease pursuant to Article 15 hereof prior to the date that Tenant cures such Event of Default), and (II) Landlord, in  Landlord’s sole discretion, elects to accept such cure by Tenant (and not to terminate this Lease) by giving Tenant  notice thereof no later than five (5) Business Days after the date that Tenant cures such Event of Default.  If Tenant  shall have elected to exercise the First Refusal Right with respect to a particular ROFR Space, Tenant shall not have  any further First Refusal Right with respect to such ROFR Space, and the First Refusal Right with respect to such  ROFR Space, shall be deemed to be null and void and of no further force or effect, except that if Tenant revokes its  exercise of the First Refusal Right, pursuant to the terms and conditions of Section 38.03 hereof, Tenant shall again  be entitled to the First Refusal Right with respect to such ROFR Space.                    E.     Following full execution of the Tenant Term Sheet, Landlord and Tenant shall promptly  consummate the transaction contemplated thereby in accordance with the terms of the Tenant Term Sheet.          Section 38.03  If Tenant shall timely exercise the aforesaid First Refusal Right, then the First Refusal  Premises shall be added to and become part of the Demised Premises on the terms set forth in Subsection 38.02C  above, as of the date (the “ROFR Space Commencement Date”) on which Landlord shall have delivered possession  of the First Refusal Premises to Tenant in the condition required pursuant to the provisions of Subsection 38.03C  above.  Landlord shall use commercially reasonable efforts to deliver possession of the First Refusal Premises to  Tenant on the date set forth in the Tenant Term Sheet as the anticipated commencement date for the First Refusal  Premises (the “Target ROFR Space Commencement Date”).  If Landlord shall be unable to deliver possession of the  First  Refusal  Premises to  Tenant  for  any  reason  on or  before  the  Target ROFR  Space  Commencement Date, the  ROFR Space Commencement Date shall be deferred to and shall be the date on which the First Refusal Premises is  available for Tenant’s occupancy, vacant and free from tenants or other occupants and otherwise in the condition set  forth  in  Subsection  38.02C  above,  and Landlord  shall  have  no  liability  to  Tenant  for  such  failure  to  deliver  possession  on  the  Target ROFR  Space  Commencement Date, and  Landlord shall  continue  to  use  commercially  reasonable efforts to deliver possession of the First Refusal Premises to Tenant; provided, however, that if Tenant  delivers a notice to Landlord requesting that Landlord commence holdover litigation proceedings against the current  tenant or occupant of the First Refusal Premises (the “ROFR Space Holdover Proceeding Notice”), then Landlord  shall, within thirty (30) days after receipt of the ROFR Space Holdover Proceeding Notice from Tenant, commence  holdover litigation proceedings against such tenant or occupant if such holdover tenant or occupant shall not have  vacated the First Refusal Premises by the end of such thirty (30) day period.  If the ROFR Space Commencement  Date does  not  occur  on  or  prior  to  the one  hundred  eightieth  (180th)  day  following  the  Target  ROFR  Space   Commencement Date (the “ROFR Inclusion Outside Date”), then Tenant, at Tenant’s sole election, within ten (10)  Business Days after the ROFR Inclusion Outside Date, may elect to revoke its exercise of the First Refusal Right by  giving notice thereof to Landlord no later than the tenth (10th) Business Day following the ROFR Inclusion Outside  Date (with time being of the essence), in which event the First Refusal Right shall be null and void and of no further  force or effect as to the First Refusal Premises as of the date set forth in Tenant’s written revocation of its execution  of the Tenant Term Sheet (which shall be the date that Tenant delivers such revocation to Landlord), and Landlord  shall have no further obligation with respect to offering the First Refusal Premises (or the applicable portion thereof)  to Tenant, it being agreed that, if Tenant does not elect to revoke its exercise of the First Refusal Right by giving  such notice to Landlord on or before the date that is ten (10) Business Days after the ROFR Inclusion Outside Date,  then  Landlord  shall diligently  and  in  good  faith continue  the  holdover litigation  proceedings  against  the  current  tenant  or  occupant  of  the First  Refusal  Premises until  the  occurrence of  the ROFR  Space  Commencement  Date.   This Section 38.03 constitutes “an express provision to the contrary” within the meaning of Section 223-a of the  New York Real Property Law and any other law of like import now or hereafter in effect.                                                   -116-    NY 78267766v2 

 

       Section 38.04  The  rights of expansion  and first  refusal  granted  pursuant  to  this  Article  38  shall  be  deemed  a  personal  right  limited  to  FTI Tenant (with  subtenants  and assignees  other  than  any Related  Entity or  Successor Entity of FTI having no rights or options hereunder), and in connection with the granting of such right, all  references in this Article 38 to "Tenant" shall be deemed to refer only to FTI Tenant.                                              ARTICLE 39.                                                                                           PARKING SPACES          Section 39.01  Subject to and in accordance with the terms and conditions of this Lease, provided that  Tenant is then in actual occupancy of at least 120,720 rentable square feet (including occupancy by permitted Desk  Sharing Entities) in the 7-21 Condominium, Landlord hereby grants to Tenant, and Tenant shall have the right to use  up  to six (6)  parking  spaces  in  the  cellar  level  of  the  Building (i.e.,  two  (2)  Parking  Space(s)  per  each  40,240  rentable square feet), the exact location of such space to be designated by Landlord in Landlord’s sole and absolute  discretion (each, a “Parking Space”) during the Lease Term on and subject to the terms and conditions set forth in  this Article 39.  On or prior to the date that is ninety (90) days following the Commencement Date, Tenant shall  deliver notice to Landlord specifying the total number of Parking Spaces, if any, that Tenant elects to reserve (the  “Parking Election Notice”).  Provided that Tenant pays the Parking Fee, Landlord shall cause such Parking Spaces  to be reserved for Tenant for the remainder of the Lease Term (subject to the provisions of Section 39.08 below), or  such earlier time as Tenant elects, upon notice to Landlord, to no longer reserve any or all of such Parking Spaces. If  Tenant fails to deliver such Parking Election Notice, Landlord shall have the right to send Tenant a notice of same  containing a legend in not less than 14 point font, bold, upper case letter stating “TENANT’S PARKING SPACES  REMINDER NOTICE” and if Tenant shall have failed to deliver to Landlord the Parking Election Notice within  five (5) Business Days after Landlord’s delivery of such reminder notice, Landlord shall have no further obligation  hereunder to cause to be reserved or otherwise cause to be provided any Parking Spaces for Tenant’s use.  Tenant  acknowledges and agrees that each Parking Space is currently (subject to change as determined by the Board at the  Board’s discretion) accessible (i) by vehicle from the loading dock area of the Building using a vehicle elevator, and  (ii) by foot from the main lobby of the Building using a stairway and/or freight elevator designed by Landlord.            Section 39.02    Tenant shall pay to Landlord, as additional rent in consideration for the right to reserve  or use each Parking Space, a monthly sum (the “Parking Fee”), in advance on the first day of each month during the  Lease Term, without any setoffs or deductions whatsoever.  Subject to the terms of Section 39.01 above, if the date  on  which  Tenant  delivers  the  Parking  Election  Notice  shall  commence on  other  than  the  first  day  or  last  day,  respectively, of a calendar month, the Parking Fee for such month shall be prorated. The Parking Fee for the Parking  Space(s) for the first year of the Lease Term shall be Six Hundred ($600.00) Dollars per month per Parking Space.   Such Parking Fee shall be increased on each anniversary of the Commencement Date so that the Parking Fee for the  Parking Space(s) equals (i) the Parking Fee for the Parking Space(s) for the prior year, plus (ii) an amount equal to  the  Parking  Fee  for  the Parking  Space(s) for  the  prior  year  multiplied  by  three  (3%)  percent.  In  addition  to  the  Parking  Fee,  Tenant  shall  reimburse  Landlord  for  the  New  York  City  parking  tax  or  other governmental  fee,  assessment  or taxes  (other  than  income  taxes)  imposed  upon  such  parking  charges  within  thirty  (30)  days  after  Landlord’s written request therefor.            Section 39.03    The right to use the Parking Space(s) granted pursuant to this Article 39 does not and  shall  not  be  deemed  to  constitute  a  lease  or  a  conveyance  of  the Parking  Space(s) by  Landlord  to  Tenant,  or  to  confer  upon  Tenant  any  right,  title,  estate  or  interest  in  the Parking  Space(s).  Instead,  Tenant  is  granted  only a  personal privilege to use the Parking Space(s) for the Lease Term, on and subject to the terms and conditions set  forth herein.          Section 39.04    Tenant shall not permit the whole or any portion of the Parking Space(s) to be occupied  by any person or entity other than Tenant or employees of Tenant and its affiliated entities who are authorized in  accordance herewith to use the Parking Space(s) (each, a “Tenant’s Parking User”). Tenant shall deliver to Landlord  prior notice of the name of each Tenant’s Parking User who is to have access to the Parking Space(s), which Tenant  shall have the right to update at any time; it being agreed that Landlord may require each Tenant’s Parking User to  use reasonable visible identification (e.g., bumper decal, window sticker or pass) to evidence authorized use of the  Parking Space(s).                                                 -117-    NY 78267766v2 

 

       Section 39.05    Notwithstanding that the Parking Space(s) is(are) not (and shall not be deemed to be)  part of the Demised Premises, all of Tenant’s indemnity and insurance obligations set forth elsewhere in this Lease  shall be applicable to the Parking Space(s).  The foregoing shall not be construed to diminish or reduce Tenant’s  obligations pursuant to Section 6.01 above with respect to Tenant Necessitated Repairs.          Section 39.06    Tenant  hereby  acknowledges  that  Landlord  has  granted  the  right  to  use  the Parking  Space(s) to Tenant with the express understanding that Landlord shall have no liability to Tenant whatsoever for any  theft, vandalism or other damage that may occur to any automobiles parked in the Parking Space(s) (except if and to  the extent of damage resulting from the negligence, bad faith or willful misconduct of Landlord and any Persons  Within  Landlord’s  Control.  Tenant  hereby  releases  and  discharges  Landlord and  any  Persons  Within  Landlord’s  Control from any liability or obligation whatsoever with respect to any theft, vandalism or other damage that may  occur to any automobiles parked in the Parking Space(s) (except if and to the extent of damage resulting from the  negligence,  bad  faith or willful  misconduct  of  Landlord or  any  Persons  Within  Landlord’s  Control).  Tenant  acknowledges that Landlord’s employees and security personnel have no duty to protect any automobiles parked in  the Parking  Space(s).  The  willful  failure  or  willful  refusal  of Landlord’s  employees  or  security  personnel  to  intervene to protect any automobiles parked in the Parking Space(s) that such employees or security personnel see  being  vandalized  is  expressly  agreed  by  Tenant  not  to  be  the  negligence,  bad  faith  or  willful  misconduct  of  Landlord, its employees or agents for purposes of this Lease.          Section 39.07    Landlord shall have no obligation to alter, improve, decorate, or otherwise prepare the  Parking Space(s) for Tenant’s use and occupancy. Tenant shall not make any Alterations, decorations, installations  or improvements of any kind whatsoever to the Parking Space(s).          Section 39.08    If Tenant shall fail to actually occupy at least 120,720 rentable square feet (including  occupancy  by  permitted  Desk  Sharing  Entities) in  the  7-12  Condominium, in  addition to  any  other  rights  and  remedies  available  to  Landlord  hereunder,  Landlord  may,  upon  not  less  than  thirty  (30)  days’  prior  to  Tenant  thereof,  proportionately reduce  the  Parking  Space(s)  available  to  Tenant (i.e.,  two  (2)  Parking  Spaces  for  every  40,240 rentable square feet), whereupon said right to use the revoked Parking Space(s) shall terminate on the date  set  forth  in  said  notice,  and  Tenant  shall  vacate  the revoked Parking  Space(s) on  said  date  and  cause  any  automobiles parked by Tenant or its employees in the revoked Parking Space(s) to be removed as if that date were  the date of the expiration of the Lease Term as set forth herein.          Section 39.09  Tenant  shall,  at  all  times,  use  the  Parking  Spaces only  in  a  manner  that  is  in  full  compliance  with  all  present  and future  Legal  Requirements.   Tenant,  and  its  employees,  agents,  visitors  and  contractors, including Tenant’s Parking Users, shall observe faithfully, and comply strictly with, any and all rules  and regulations established with respect to the use of the Parking Spaces by Landlord and/or the Board pursuant to  Article 26 above.                                             ARTICLE 40.                                                                                         ENERGY EFFICIENCY          Section 40.01                    A.     The parties acknowledge that as of the date hereof, the Building is a “covered building”  as that term is defined in the New York City Climate Mobilization Act of 2019 (as the same may be amended or  modified, the  “Act”),  and  is  subject  to  the  mandatory  building  emissions  limitations  established  by  the  Act  commencing in calendar year 2024, and continuing each year thereafter. Landlord and Tenant understand that the  Act seeks to reduce greenhouse gas emissions from buildings by 40% by 2030 and 80% by 2050. To accomplish  these emissions reductions, as of the date hereof, the Act imposes mandatory initial building emissions limitations  for “covered buildings” for  the calendar years  2024-2029 (the  “Initial  Compliance  Period”),  and  more  stringent  building  emissions  limitations  for  the calendar years  2030-2034.  Further,  more  stringent  building  emissions  limitations are  intended  to be  promulgated  by  the  New  York  City  Department  of  Buildings  for calendar years  following calendar year 2034.  In furtherance of compliance with the Act, Landlord shall, if required by the Act,  beginning on May 1, 2025, and on each May 1 thereafter, submit to the New York City Department of Buildings an                                                 -118-    NY 78267766v2 

 

annual report, certified by a registered design professional, attesting to the Building’s actual annual greenhouse gas  emissions.                  B.     The parties agree that for so long as the Act, or any successor act, is in effect, it is in their  mutual best interest that the Building and the Demised Premises be operated and maintained in a manner that is  environmentally responsible. In furtherance of the foregoing, Tenant shall use commercially reasonable efforts to  conduct its operations in the Building and within the Demised Premises in such a manner as to minimize (i) direct  and  indirect  energy  consumption  and  greenhouse  gas  emissions;  (ii)  water  consumption;  (iii) the  disposal  of the  material into the waste stream; and (iv) pollution of the indoor air quality of the Building and the Demised Premises.          Section 40.02                    A.     Utilizing the formulas and building emissions intensity factors provided for in the Act,  Landlord or the Board shall, at the time and in the manner required by the Act, cause to be established an emissions  limitation applicable to the Demised Premises for the Initial Compliance Period (the “Demised Premises Emissions  Limit”) that shall be equal to the rentable square feet of the Demised Premises multiplied by the per square foot  emissions  intensity  limit  as  defined  in  the  Act  for  the  relevant  occupancy  use  group,  and Landlord  shall deliver  notice of the same to Tenant, it being agreed that Landlord or the Board shall, upon notice to Tenant, have the right  to  make  reasonable  updates  to  the  Demised  Premises  Emissions  Limit  during  the  Lease  Term  after  the  Initial  Compliance Period in order to comply with the Act during the Lease Term.                  B.     Throughout  the Lease Term,  Tenant  shall  use  its commercially reasonable  efforts  to  conduct its operations in the Demised Premises in a manner as to not exceed the Demised Premises Emissions Limit  then  in  effect.  Landlord  shall  present  to  Tenant as  soon  as  reasonably  practicable following  the  end  of  each  Operating Year (or portion thereof) occurring during the Lease Term (but in no event sooner than Landlord or the  Board is required to deliver the same to the New York City Department of Buildings pursuant to the Act), an annual  environmental  performance  report  (the  “Annual  Environmental  Performance  Report”) setting  forth  the emissions  produced  by  the  Building and  the  Demised  Premises  for  the  preceding  Operating  Year,  in  which the  emissions  produced by the Demised Premises will be calculated using the Tenant’s actual submetered use of electricity, and  Tenant’s prorata share of Landlord services (unless separately metered or submetered) (i.e., steam, natural gas, fuel  oil). Tenant shall have the right to audit the same in accordance with the provisions of Subsection 19.04D hereof  (including the timeframes set forth therein), provided that any dispute in connection therewith shall be decided by a  registered building design professional selected by Landlord and reasonably acceptable to Tenant.          Section 40.03  Tenant shall be entitled to all so-called “Carbon Credits” that may be created, credited or  recoverable because of Tenant activities conducted within the Demised Premises (the “Tenant Carbon Credits”); it  being  agreed  and  understood  that  if  any  such  “Carbon  Credits”  are  created, credited  or  recoverable  because  of  Landlord activities, even within the Demised Premises, Landlord shall be entitled to such “Carbon Credits”.  Tenant  shall  be  entitled  to  allocate at  Tenant’s  discretion  such Tenant  Carbon  Credits created as  set  forth  in  the  prior  sentence, and/or qualifying NYC Renewable Energy Certificates, to the Landlord, in exchange for a reduction in  Tenant’s Overage Amount for the applicable Operating Year. Tenant shall also be entitled to procure and allocate to  Landlord qualifying carbon offset credits in exchange for such a reduction.          Section 40.04  If, in any year during the Lease Term in which Landlord or the Board is required by the  Act  to  report  the  Building’s energy  use  to  the  New  York  City  Department  of  Buildings,  Landlord or  the  Board  receives a fine or penalty under the Act due to the Building exceeding its annual building emissions limitation (a  “Building  Emissions Penalty”),  and  if  Tenant  has  exceeded  the  Demised  Premises  Emissions Limit during  the  applicable  reporting  period, Tenant’s  Overage  Amount shall  be  paid  by  Tenant  to  Landlord,  as additional rent,  within thirty (30) days after Landlord's demand therefor.  For purposes hereof, “Tenant’s Overage Amount” shall be  an amount equal to the penalty paid by the Building for exceeding its annual emissions limit multiplied by tCO2-e by  which Tenant exceeded the Demised Premises Emissions Limit less any eligible “Carbon Credits” or Renewable  Energy Certificates  transferred  by  Tenant  to  Landlord  for  the  applicable Operating Year, divided  by tCO2-e by  which the Building exceeded the emissions limit established by the Act for the Building.                                                  -119-    NY 78267766v2 

 

       Section 40.05                    A.     Landlord may, from time to time, implement energy efficiency retrofits in the Building  and/or  the  Demised  Premises  in  order  to  comply  with  the  Act,  and  Landlord  shall  comply  with  the  terms  and  conditions  of  Article  13  with  respect  thereto.  Tenant  shall  at  all  times reasonably cooperate  with  Landlord’s  implementation of such retrofits.                  B.     Notwithstanding  anything  in  this  lease  to  the  contrary,  to  the  extent  such  energy  efficiency  retrofits  are  reasonably  necessary  to  ensure  that  the  Building complies  with  the  emissions  limitations  established by the Act, or if Landlord elects to incur a Building Emissions Penalty in lieu of performing any such  retrofits, then, in each case, Landlord’s costs with respect thereto shall be included as part of Operating Expenses  and,  with  respect  to  any energy  efficiency  retrofits,  shall  be  amortized  in  accordance  with the  provisions  of  Subsection 19.02E(xvii).                  C.     To the extent such energy efficiency retrofits are exclusive to the Demised Premises, and  are reasonably necessary to ensure that the Demised Premises comply with the Demised Premises Emissions Limit,  Tenant  may  request  that  Landlord  implement  such  retrofits,  and  if  Landlord  agrees  to  do  so  (at  Landlord’s  sole  discretion), Landlord’s cost to implement such measures shall be paid by Tenant to Landlord, within thirty (30) days  after Landlord's demand therefor, as additional rent; provided that such costs shall be amortized on a straight-line  basis over the useful life of the improvement, equipment or machinery, as reasonably estimated by Landlord or the  Board, with an interest factor calculated using the Interest Rate in effect at the time that any such cost is incurred.          Section 40.06  If Landlord shall receive a refund or a credit of any Building Emissions Fine with respect  to a calendar year for which Tenant has paid any Tenant’s Overage Amount, then Tenant’s pro rata share of such  Building  Emissions  Fine  (based  on  the  proportion  of  the  Building  Emissions  Fine  paid  by  Tenant  during  such  calendar  year)  (“Tenant’s  Allocable  Share”), after  deduction  of reasonable legal  fees,  fees of  building  design  professionals and other expenses reasonably incurred in obtaining such refund or credit and collecting the same (and  after  deduction  of  such  expenses  for  previous calendar  years which  were not  offset  by Building  Emissions  Fine  refunds or credits for such calendar year and which were not otherwise passed through to Tenant pursuant to the  terms of this Lease) shall, if Tenant shall not be in default of any of Tenant’s monetary or material non-monetary  obligations  under  this  Lease  (after  notice  of  such  default  shall  have  theretofore been  given  to  Tenant,  subject  to  Subsection  40.06B  below), be refunded or  credited to  Tenant  against  the  next  installments  of  Fixed  Rent  due  hereunder.  In  no  event shall  any  refund  or  credit  due  to  Tenant  hereunder  exceed  the amount  of  the  Tenant’s  Overage Amount paid by Tenant for such particular calendar year.  Only Landlord shall be eligible to institute a  proceeding to reduce any Building Emissions Fine under the Act.  In no event shall Tenant have the right to seek  any refund or reduction of the Building Emissions Fine from any governmental authority.  If Landlord shall obtain  or attempt to obtain a reduction in, or credit of, the Building Emissions Fine for any calendar year in which Tenant  has exceeded the Demised Premises Emissions Limit, then Tenant shall pay to Landlord, within fifteen (15) days  following the issuance to Tenant of a bill therefor, an amount equal to Tenant’s pro share, equitably allocated on a  pro  rata  basis, of  all reasonable out-of-pocket  costs  and  expenses  (including reasonable legal, building  design  professional, accountant and other expert fees (which reasonable legal fees may include customary contingent fees  for matters of this type in Manhattan) and costs related to the filing of Annual Environmental Performance Reports  incurred by Landlord in obtaining or attempting to obtain such reduction.                  A.     At  any  time  Tenant  is  due  a  refund  or  credit  from  Landlord  in  accordance  with  the  foregoing provisions of Subsection 40.06A, if Tenant shall be in default (after Tenant shall have theretofore been  given  notice  of  any  such  default)  with  respect  to  any  of  the  monetary  or  material  non-monetary  obligations  of  Tenant under this Lease, or an Event of Default shall have occurred that is then continuing, then Tenant’s right to  receive such refund or credit shall be deemed suspended until such time as the monetary or material non-monetary  default, or Event of Default, as applicable, no longer exists.                  B.     At  any time  Tenant  is  due  a  refund  or  credit  from  Landlord  in  accordance  with  the  foregoing provisions of Subsection 40.06A, if:                         (i)      Tenant shall be in default (after Tenant shall have theretofore been given notice  of any such default) with respect to any of the monetary or material non-monetary obligations of Tenant under this                                                 -120-    NY 78267766v2 

 

Lease, then Tenant’s right to receive such refund or credit shall be deemed suspended until such time as Tenant shall  have cured such monetary or material non-monetary default.  If Tenant shall have cured such monetary or material  non-monetary default within the applicable cure period, then Tenant’s right to receive such refund or credit shall be  deemed reinstated and shall be credited in accordance with the applicable provisions of this Article 40, or                         (ii)     (I)  an  Event  of  Default  has  occurred  by  virtue  of  Tenant’s  failure  to  cure  a  monetary or material non-monetary default within the specified cure period pursuant to Subsection 40.06A above, or  (II) an Event of Default shall have occurred and is continuing, then, in either case, Tenant’s right to receive such  refund or credit shall be deemed suspended until such time as Tenant shall have cured such Event of Default and if  (a) Tenant cures such Event of Default prior to the EOD Cure Date, and Landlord shall not have terminated this  Lease in accordance with Article 15 above by virtue of such Event of Default, and (b) Tenant shall not be in default  of any of Tenant’s other monetary or material non-monetary obligations under this Lease after notice of such default  shall  have  been given  to  Tenant (in  which  event  Subsection 40.06B(i) above shall  apply) and no  other  Event  of  Default shall have occurred that is then continuing (in which event this Subsection 40.06B(ii) shall apply), then,  from and after the subject EOD Cure Date, Tenant’s right to receive such refund or credit shall be deemed reinstated  and shall be credited in accordance with the applicable provisions of this Article 40.                                   [Remainder of Page Intentionally Left Blank]                                                  -121-    NY 78267766v2 

 

       IN WITNESS WHEREOF, Landlord and Tenant have duly executed this Lease as of the day and year first  above written.                                               1166 LLC,                                                                                                                             Landlord                                                                                                                                                                                                           By:  /S/ EDWARD J. MINSKOFF                                                         Name: Edward J. Minskoff_______                                                          Title: Authorized Signatory_____                                                        FTI CONSULTING, INC.,                                                                                                                            Tenant                                                                                                                                                                                                                By:  /S/ CURTIS P. LU                                                         Name: Curtis P. Lu______________________________                                                          Title: General Counsel_______________________                                                                                                                                                                                                                                                          Tenant’s Federal ID #__52-1261113_______________________                                                                                           [Signature Page to A&R Lease]                                                      NY 78267766v2

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