Exhibit 10.3

AGREEMENT OF SUBLEASE (NYT)

By and Between

THE NEW YORK TIMES BUILDING LLC,

Landlord,

And

NYT REAL ESTATE COMPANY LLC

Tenant

Dated as of: December 12, 2001

TABLE OF CONTENTS

i

ii

iii

iv

v

vi

vii

viii

This AGREEMENT OF SUBLEASE (this “Lease”), is made as of the 12th day of December, 2001, by and between THE NEW YORK TIMES BUILDING LLC (“NYTB”), a New York limited liability company, having an office at c/o The New York Times Company, ▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, as Landlord, and NYT REAL ESTATE COMPANY LLC (“Tenant”), a New York limited liability company, having an office at c/o The New York Times Company, ▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇.

W I T N E S S E T H :

WHEREAS, ESDC and the City have developed, and are in the process of implementing, a rehabilitation and renewal plan for an area of midtown Manhattan surrounding West 42nd Street between Broadway and Eighth Avenue, known as the ▇▇▇▇ ▇▇▇▇▇▇ Development Project (the “▇▇▇▇ ▇▇▇▇▇▇ Project”);

WHEREAS, in furtherance of the ▇▇▇▇ ▇▇▇▇▇▇ Project, ESDC has agreed to commence proceedings to obtain fee title to the Property pursuant to the Condemnation;

WHEREAS, promptly after ESDC obtains fee title to the Property, ESDC will convey (a) to 42DP an estate on limitation in the Property, and (b) to the City a reversionary estate in the Property;

WHEREAS, Landlord (as hereinafter defined) and Tenant acknowledge that the goals of the ▇▇▇▇ ▇▇▇▇▇▇ Project include (i) development of the ▇▇▇▇ ▇▇▇▇▇▇ Project area’s commercial and retail potential, fostering a lively, healthy street ambience and supporting the City’s policy of fostering an environment that encourages the expansion of the midtown Manhattan office area, (ii) expansion of the ▇▇▇▇ ▇▇▇▇▇▇ Project area’s economic contribution to New York City as a whole, both through increased revenues to the City and expanded private investment and employment opportunities, and (iii) restoration of the ▇▇▇▇ ▇▇▇▇▇▇ Project area’s role as a positive influence on the adjacent communities;

WHEREAS, Landlord and Tenant further acknowledge that it is their intent that the Demised Premises and the Common Elements be operated and maintained in accordance with this Lease to further the goals of the ▇▇▇▇ ▇▇▇▇▇▇ Project;

WHEREAS, ESDC, 42DP, Landlord, Tenant, NYCEDC, the City and certain other parties are, as applicable, contemporaneously herewith entering into the documents listed on Exhibit A attached hereto (the “Project Documents”);

WHEREAS, Landlord and Tenant wish to provide for the operation and maintenance of the Demised Premises and the Common Elements;

WHEREAS, 42DP and Landlord, on the date hereof, entered into that certain Agreement of Lease in respect of the Property (such ground lease, as may be amended or otherwise modified prior to the Lease Assignment Date, the “Initial Ground Lease”; and such ground lease, as may be amended or otherwise modified from time to time hereafter, the “Ground Lease”);

WHEREAS, on or after the Substantial Completion Date, it is contemplated that (i) the Initial Ground Lease will be amended pursuant to an amendment substantially in the form of Exhibit D attached to the Initial Ground Lease, (ii) Landlord’s leasehold interest in the Property under the Ground Lease will be subjected to a condominium regime pursuant to the Condominium Act, and (iii) Landlord’s interest in this Lease will be assigned to 42DP;

WHEREAS, the parties intend that Tenant have all of the rights and obligations of the Unit Owner (as defined and described in the Condominium Declaration) as they relate to the Demised Premises and the Common Elements, including without limitation, the right to control the Units (as defined and described in the Condominium Declaration) that correspond to the space comprising the Demised Premises under this Lease, subject and pursuant to the Condominium Declaration; and

WHEREAS, Tenant wishes to hire and to take from Landlord, and Landlord wishes to lease and to demise to Tenant, the Demised Premises, together with an undivided interest in the Common Elements.

NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby covenant and agree as follows:

ARTICLE I
DEFINITIONS; CONSTRUCTION OF TERMS

Section 1.1 Definitions. (a) The terms defined in this Section 1.1 shall, for all purposes of this Lease and all agreements supplemental hereto, have the meanings herein specified, unless specifically stated otherwise:

(i)               “$2,000,000+ Alteration” has the meaning set forth in Section 9.5(a) hereof.

(ii)              “42DP” means 42nd St. Development Project, Inc., a subsidiary of New York State Urban Development Corporation d/b/a Empire State Development Corporation (“ESDC”), a corporate governmental agency of the State of New York constituting a political subdivision and public benefit corporation, having an office at ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇.

(iii)             “AAA” has the meaning set forth in Section 16.2(a) hereof.

(iv)             “Acceptable Guarantor” means a Person having (A) a net worth, on the date of the depositing of such security, of at least $50,000,000, as Adjusted for Inflation from the date hereof and (B) a debt rating of at least “A” from Standard and Poors or the equivalent rating from another nationally recognized rating agency.

(v)              “Accounting Principles” means, from time to time, the then generally accepted accounting practices, consistently applied on a “cash basis”.

2

(vi)             “Adjusted for Inflation” means, with respect to any sum, that there shall be added to such sum (as the same may have been previously adjusted), beginning on the date hereof unless otherwise specified, on an annual or such other basis as may be specified in this Lease (such annual or other period, the “Specified Interval”), an amount equal to the product of (A) such sum (as the same may have been previously adjusted) and (B) a fraction (1) the numerator of which is the difference between [a] the Consumer Price Index for the calendar month immediately preceding the calendar month in which the Specified Interval for which such calculation is being made ended and [b] the Consumer Price Index for the calendar month immediately preceding the calendar month in which the immediately preceding Specified Interval ended (or, if such date would be prior to the date hereof, the calendar month in which the date hereof occurs) (the “Measuring Month”), and (2) the denominator of which is the Consumer Price Index for the Measuring Month; provided, however, (i) if for any Specified Interval the difference between the index numbers in clauses [a] and [b] above is less than zero (0), such numerator shall be deemed to be zero (0) for purposes of calculating the applicable adjustment, and (ii) the applicable adjustment for the Specified Interval immediately following a Specified Interval in which the preceding clause (i) shall have been applicable shall be determined by replacing clause [b] above in its entirety with the following: “[b] the Consumer Price Index for the calendar month immediately preceding the calendar month in which the Last Positive Specified Interval (as hereinafter defined) ended. The “Last Positive Specified Interval” shall mean the last Specified Interval prior to the date of the applicable determination hereunder for which the difference between the index numbers, determined in accordance with clause [a] above and this clause [b] prior to being altered due to the triggering of this proviso, was more than zero (0)”.

(vii)            “Adjusted Gross Revenues” means all (A) revenues, receipts and income of whatever kind and nature of Tenant or any Related Entity, as determined in accordance with Accounting Principles, in any Lease Year, generated from the ownership, operation, leasing, use or occupancy of the PA Retail Space (but only if the PA Retail Space equals or exceeds 5,000 Square Feet) including (1) license fees or other amounts received from any subtenant of such Retail Space or its affiliate for the right to maintain signage on the facade of the Improvements (but not from the granting of such signage rights to any third party), (2) rentals, fees or other payments from Subtenants (subject to clause (9) below), including any common area maintenance and operating expense, but specifically excluding payments received in reimbursement of utility, PILOT, Theater Surcharge or BID payments made by Tenant, or any Related Entity, (3) the proceeds of insurance received by Tenant with respect to business interruption or rent insurance (but not liability or casualty insurance received by Tenant), (4) security and other deposits which secure other revenues, receipts or income qualifying as Adjusted Gross Revenues when and to the extent Tenant, after the final resolution of any Subtenant dispute over whether Tenant has the right to retain such security and other deposits, either has the right to retain the same or Tenant has no obligation to refund the same (and excluding security and other deposits to the extent applied by Tenant to reimburse Tenant for reasonable costs incurred in remedying a non-monetary default by the provider of such security or deposit), (5) interest or other investment income earned from time to time by Tenant on deposits or other revenues, receipts or income qualifying as Adjusted Gross Revenues, (6) amounts recovered in any legal action or proceeding or settlement thereof which reimburses Tenant for a loss of revenues, receipts or income qualifying as Adjusted Gross Revenues (and excluding any such amounts to the extent reimbursing Tenant for reasonable costs incurred in

3

remedying a non-monetary default by the defendant in such action), (7) construction fees from the performance by Tenant or any Related Entity of construction or construction management services for Subtenants, but only to the extent such fees exceed customary amounts (and excluding such fees to the extent they do not exceed such customary amounts), (8) leasing or brokerage commissions paid to Tenant or any Related Entity in connection with the entering into of a Sublease or the renewal thereof or the expansion of the Demised Space thereunder, but only to the extent Tenant or such Related Entity is not the procuring broker, or if Tenant or such Related Entity is the procuring broker, only to the extent such commissions exceed customary amounts (and excluding such commissions to the extent they do not exceed such customary amounts), and (9) with respect to any Related Entity that is a Subtenant in possession and actual use of its Demised Space, the greater of [a] the rentals, fees or other payments made to Tenant by such Subtenant, including any common area maintenance and operating expense, but specifically excluding payments received in reimbursement of utility, PILOT, Theater Surcharge or BID payments made by Tenant and [b] the fair market rental value of such Demised Space (and with respect to a Related Entity that is a Subtenant not in possession and actual use of its Demised Space, all revenues, receipts and income of whatever kind and nature of such Related Entity generated from the Demised Premises, as provided above, shall be included in Adjusted Gross Revenues) less (B) refunds made upon transactions included within the revenues described in clause (A) above. “Adjusted Gross Revenues” shall not include any management fee in a customary amount paid by Tenant to any Related Entity to manage the Demised Premises.

(viii)           “Administrative Fee” has the meaning set forth in Section 3.6 hereof.

(ix)             “Allocated Square Feet” has the meaning set forth in Section 1.1(cclxi) hereof, the definition of Total Taxable Square Feet Certificate.

(x)              “Alteration” means every alteration, installation, improvement, addition, removal, demolition or other physical change in or about any portion of the Demised Premises or the Common Elements (or applicable portion thereof); provided, however, that no Interior Construction Work shall constitute an Alteration.

(xi)             “Alterations Certification” has the meaning set forth in Section 9.7 hereof.

(xii)            “Alteration Plans and Specifications” means the plans and specifications for any Alteration that have been submitted to and approved by Landlord in accordance with Section 9.5 hereof with such modifications after such approval as shall have been consented to by Landlord in accordance herewith. All proposed Alterations Plans and Specifications submitted to Landlord shall (A) comply with the applicable requirements of DUO, and (B) be in such detail, including elevations and sections, as Landlord may reasonably request.

(xiii)           “Applicable Judgments” means all judgments, court orders and injunctions applicable to or affecting the Demised Premises, this Lease or the Common Elements, now or hereafter existing.

4

(xiv)           “Appointment Date” has the meaning set forth in Section 16.2(a) hereof or Section 16.3(a) hereof, as applicable.

(xv)            “Approved Schematic Design Plans” means those certain Schematic Design Plans approved in accordance with Section 6.2(a)(ii) of the Initial Ground Lease.

(xvi)           “Arbitration Notice” has the meaning set forth in Section 16.2(a) hereof.

(xvii)          “Arbitrator” has the meaning set forth in Section 16.2(a) hereof.

(xviii)         “Architect” means the Design Architect and any other registered architect or architectural firm selected by Tenant and/or any Subtenant and, if required pursuant to the terms of this Lease, approved by Landlord in accordance with this Lease.

(xix)            “Architect’s Certification” means a certification, executed by an Architect or an Engineer, made to Landlord.

(xx)             “Argent” has the meaning set forth in Section 33.2(a) hereof.

(xxi)            “Assignment” means the sale, exchange, assignment or other disposition, whether by operation of law or otherwise, of all or any portion of Tenant’s interest in this Lease or the leasehold estate created hereby.

(xxii)           “Auditorium” has the meaning set forth in Section 30.4(b)(i) hereof.

(xxiii)          “BID” means a Business Improvement District or any successor in function.

(xxiv)         “Brokers” has the meaning set forth in Section 33.2 hereof.

(xxv)          “Budgeted Lobby Sublease Space Construction Costs” has the meaning set forth in Section 34.2(a) hereof.

(xxvi)         [INTENTIONALLY OMITTED]

(xxvii)        “Budgeted Roof Top Garden Construction Costs” has the meaning set forth in Section 34.2(b) hereof.

(xxviii)       “Business Day” means any day which is not a Saturday, a Sunday or a day observed as a holiday by the City or the State of New York or the federal government of the United States of America.

(xxix)          [INTENTIONALLY OMITTED]

(xxx)           “Casualty” has the meaning set forth in Section 11.1(a) hereof.

5

(xxxi)          “Certified Public Accountant” means (A) any of the firms set forth on Exhibit B attached hereto, or (B) any other reputable and disinterested certified public accounting firm with more than seventy-five (75) Principals.

(xxxii)         “Charges” means all of the amounts payable by Tenant pursuant to this Lease, including, but not limited to, PILOT, Percentage Rent, Theater Surcharge, additional charges, and any other sums, costs, expenses, or deposits which Tenant is obligated, pursuant to any of the provisions of this Lease, to pay to and/or deposit with Landlord.

(xxxiii)        “City” means The City of New York, a municipal corporation.

(xxxiv)        “Claims” means all liabilities (statutory or otherwise), obligations, claims, demands, damages, penalties, causes of action, costs, expenses (including attorneys’ fees and expenses), losses and injuries in any manner relating to or arising with respect to the subject matter of any indemnity granted herein, including any enforcement of any such indemnity by the indemnified party; provided, however, “Claims” shall not include any of the foregoing to the extent arising directly from disputes between Landlord and Tenant under this Lease except to the extent that any such dispute between Landlord and Tenant arises from enforcement of any such indemnity by the indemnified party.

(xxxv)         “Collateral Assignment” means that certain Collateral Assignment in the form attached hereto as Exhibit C.

(xxxvi)        “Collection Agent” means the Person designated in accordance with the Project Agreement to collect rents and other amounts payable hereunder, and such Person’s successors and assigns.

(xxxvii)       “Common Elements Leaseable Space” has the meaning set forth in Section 34.1(c) hereof.

(xxxviii)      “Commencement Date” means the date hereof.

(xxxix)        “Common Elements” shall initially mean the Core and Shell (as defined in the Initial Ground Lease); provided, however, that from and after the Lease Assignment Date, “Common Elements” shall have the meaning set forth in the Condominium Declaration (it being acknowledged that “Common Elements” shall not include any Limited Common Elements (as defined in the Condominium Declaration), but shall expressly include the Common Elements Leaseable Space).

(xl)             “Comptroller” has the meaning set forth in Section 3.13(a) hereof.

(xli)            “Condemnation” means the “Proceeding” as such term is defined in the Site 8 South LADA.

(xlii)           “Condemnation Restoration” has the meaning set forth in Section 12.3(a) hereof.

6

(xliii)          “Condominium Act” means Article 9-B of the Real Property Law of the State of New York or any statute enacted in lieu thereof.

(xliv)          “Condominium Association” means the condominium association established pursuant to the Condominium Documents.

(xlv)           “Condominium Association Assumption Agreement” means that certain Assumption Agreement, dated as of the Lease Assignment Date, entered into by the Condominium Association.

(xlvi)     “Condominium By-Laws” means the by-laws annexed to the Condominium Declaration, together with all amendments, modifications and supplements thereto.

(xlvii)         “Condominium Declaration” means the instrument by which Landlord’s leasehold estate in the Property as Tenant under the Ground Lease is subjected to the Condominium Act, in the form attached hereto as Exhibit D, together with all amendments, modifications and supplements thereto.

(xlviii)        “Condominium Documents” means the Condominium Declaration, the Condominium By-Laws and any other documents executed or recorded in connection with subjecting the Property to the Condominium Act.

(xlix)           “Constitutive Documents” means Tenant’s organizational documents, including (A) the operating agreement of Tenant, (B) the operating agreement of any member of Tenant, (C) the articles of organization of Tenant and (D) any modifications to the foregoing.

(l)               “Consumer Price Index” means the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the United States Department of Labor, New York - Northern New Jersey - Long Island, NY-NJ-CT area, All Items (1982-1984 = 100), or any successor index thereto, appropriately adjusted. If the Consumer Price Index ceases to be published, and there is no successor thereto, such other index as Landlord and Tenant agree upon, each acting reasonably, as appropriately adjusted, shall be substituted for the Consumer Price Index. If the Consumer Price Index ceases to use 1982-1984 = 100 as the basis of calculation, the Consumer Price Index shall be adjusted accordingly.

(li)              “Continuation Notice” has the meaning set forth in Section 31.6(i)(ii) hereof.

(lii)             “Control” has the meaning indicated in the definition of Control Affiliate.

(liii)            “Control Affiliate” means any Person controlling, controlled by or under common control with another Person, and for the purposes hereof no Person shall be deemed to control any other Person unless more than fifty percent (50%) of such controlled Person is owned beneficially by the controlling person or entity.

7

(liv)            “Conviction” has the meaning set forth in Section 13.10(d)(2) hereof.

(lv)             “Court” has the meaning set forth in Section 16.2(a) hereof.

(lvi)            “CPLR” has the meaning set forth in Section 16.2(b)(i) hereof.

(lvii)     “Customary” or “customary” when used in respect of fees, commissions or other payments for services performed or materials furnished, means the amount customarily and reasonably paid in arm’s length transactions to an unaffiliated third party for the performance of the applicable service or the provision of the applicable material in multi-tenant office developments situated in Manhattan.

(lviii)          “Date of Taking” has the meaning set forth in Section 12.2 hereof.

(lix)            “Default” means (A) the failure of any party hereto to perform or complete any Obligations as required hereunder and in accordance herewith, after receipt of any applicable First Default Notice (but without regard to any cure period in respect thereof), and (B) any other matter expressly identified as a Default hereunder.

(lx)             “Delivery Date” means the Delivery Date determined in accordance with the Initial Ground Lease.

(lxi)            “Demised Premises” means initially the space in the Property described on Exhibit F-1 attached hereto as “NYTC OFFICE” and “SPU”; provided, however, that from and after the Lease Assignment Date, “Demised Premises” shall mean the Units (as defined in the Condominium Declaration) which correspond in all material respects to such space, excluding any interest owned by Tenant in the Common Elements but expressly including the Limited Common Elements (as defined in the Condominium Declaration) appurtenant to such Units.

(lxii)           “Demised Space” means the portion of the Property in which a Subtenant has an interest pursuant to a Sublease, including, without limitation, any portion of the Roof Top Garden Space or the Lobby Sublease Space.

(lxiii)          “Depositary” means any entity, agreeing for the benefit of Landlord and the Condominium Association, to perform the obligations of depositary hereunder on substantially the terms of the Depositary Agreement, which (A) (1) is a Recognized Mortgagee or a Control Affiliate of a Recognized Mortgagee under any Severance Sublease (provided that such Recognized Mortgagee or such Control Affiliate is designated as the Depositary by the Condominium Association and such Recognized Mortgage and would qualify as a Lending Institution, but is other than a savings bank or savings and loan association), (2) if not a Recognized Mortgagee or such Control Affiliate, is a commercial bank or trust company qualifying as a Lending Institution designated by the Recognized Mortgagee most senior in lien, or (3) if not the Recognized Mortgagee or such Control Affiliate or designated by the Recognized Mortgagee pursuant to clause (2) above, is a commercial bank or trust company qualifying as a Lending Institution, as designated by the Condominium Association with the

8

reasonable concurrence of Landlord, (B) has an office in the City of New York, and (C) has a net worth of not less than One Hundred Million Dollars ($100,000,000) and net assets of not less than Two Hundred Fifty Million Dollars ($250,000,000) (as such sums shall be Adjusted for Inflation on an annual basis from the Commencement Date) throughout the period during which it acts as the Depositary. If, at any time, no Lending Institution has been designated to so act, then Landlord shall designate as the Depositary an unaffiliated third party reasonably acceptable to the Condominium Association that is ordinarily engaged in the business of acting as a depositary. The Condominium Association’s disapproval of an unaffiliated third party so designated by Landlord shall not be reasonable unless it is based solely on the prior direct experience of a tenant under a Severance Sublease or any Related Entity of a tenant under a Severance Sublease with such party.

(lxiv)          “Depositary Agreement” means the agreement, in form reasonably acceptable to Landlord and the Condominium Association (and reasonably approved by each Recognized Mortgagee, if any, at the time of the execution and delivery thereof), pursuant to which the Depositary agrees to perform its obligations hereunder.

(lxv)           “Design Architect” means ▇▇▇▇▇ ▇▇▇▇▇ Building Workshop or, in the event that ▇▇▇▇▇ ▇▇▇▇▇ Building Workshop is no longer the Design Architect, any other Replacement Design Architect approved in accordance with this Lease, in either case alone or in affiliation with another Architect acting as the Production Architect.

(lxvi)          “Design Development Plans” means those certain Design Development Plans approved in accordance with the Initial Ground Lease.

(lxvii)         “Determination” has the meaning set forth in Section 16.2(b)(iii) hereof.

(lxviii)        “Discount Rate” means a discount rate equal to the then current rate of United States Treasury bills or notes, as applicable, maturing ten (10) years after the Delivery Date or the next maturity date for such bills or notes occurring after such date.

(lxix)           “Discretionary Inside Mechanical Space” has the meaning set forth in the Initial Ground Lease.

(lxx)            “DUO” means the Design, Use and Operating Requirements which are attached to this Lease as follows:

(A)  Design, Construction and Maintenance Requirements for construction of Bridges and Fencing attached hereto as Exhibit E-1;

(B)   Historic Preservation Protection Plan for Construction Adjacent to Historic Structures attached hereto as Exhibit E-2;

(C)   Streetscape Improvement Design Program attached hereto as Exhibit E-3;

9

(D)   Display and Signage Requirements attached hereto as Exhibit E-4;

(E)   Use and Operating Program attached hereto as Exhibit E-5;

(F)   Architectural Requirements attached hereto as Exhibit E-6;

(G)   Site Safety Program attached hereto as Exhibit E-7.

(lxxi)           “DUO/Structural Alteration” has the meaning set forth in Section 9.5(a) hereof.

(lxxii)          “DUO Alteration” has the meaning set forth in Section 9.5(a) hereof.

(lxxiii)         [INTENTIONALLY OMITTED]

(lxxiv)        “EIN” means an employer identification number or taxpayer identification number issued by the Internal Revenue Service.

(lxxv)         “Engineer” means any licensed structural engineer or engineering firm selected by Tenant and/or any Subtenant and, if required pursuant to the terms of this Lease, approved by Landlord in accordance with this Lease.

(lxxvi)        “Environmental Activity” means any use, storage, installation, existence, release, threatened release, discharge, generation, abatement, removal, disposal, handling or transportation from, under, into or on the Demised Premises or the Common Elements (or any portion thereof) of any Hazardous Materials.

(lxxvii)       “Equipment” means all fixtures and personal property incorporated in or attached to and used or usable in the operation of the Demised Premises or the Common Elements owned or leased by Tenant.

(lxxviii)      “Equity Interest Disposition” means any Transfer in a Person or in any direct or indirect constituent entity of such Person, where such Transfer directly or indirectly produces any change in the direct or indirect beneficial ownership of an interest in, or Control of, such Person. The term “Equity Interest Disposition” shall also include any (A) transaction or series of transactions (including, without limitation, the issuance of additional equity interests in such Person) or (B) direct or indirect revision of the beneficial ownership structure or control of such Person or any direct or indirect constituent entity of such Person, which, in either case, produces any change in the direct or indirect beneficial ownership of an interest in, or Control of, such Person.

(1xxix)        [INTENTIONALLY OMITTED]

(lxxx)          “ESDC” has the meaning set forth in the definition of 42DP.

10

(lxxxi)         [INTENTIONALLY OMITTED]

(lxxxii)        “Event” has the meaning set forth in Section 30.4(b)(ii) hereof.

(lxxxiii)       “Event of Default” has the meaning set forth in Section 14.2 hereof.

(lxxxiv)       “Eviction Proceeding” has the meaning set forth in Section 13.2(e) hereof.

(lxxxv)        “Excess Site Acquisition Costs (Allocated)” means the amount by which (A) Tenant’s Percentage Allocation of the Total SAC Amount, including interest thereon pursuant to Section 3.04(c) of the Site 8 South LADA, exceeds (B) Tenant’s Percentage Allocation of the Transaction Price.

(lxxxvi)       “Excluded Taxes” has the meaning set forth in Section 1.1(a)(cx) hereof, the definition of Impositions.

(lxxxvii)      “Exempted Mortgage” means (A) the Mortgage granted by the lessee under the Initial Ground Lease in connection with the initial construction financing of the development of the Improvements, (B) to the extent such financing is closed simultaneously with the financing described in clause (A) above, the mortgage granted by such lessee in connection with such lessee’s initial permanent financing of the development of the Improvements or any portion thereof and (C) the recording of any assignment(s) of, or any spreader, splitter or consolidation agreements in respect of, the mortgages described in clauses (A) and (B) above, and any other documents securing payment of such financing recorded concurrently or in connection therewith, but only to the extent of the outstanding principal indebtedness secured by such mortgages at such time.

(lxxxviii)     “Existing Violations” means any condition on the Property, existing on or before the Delivery Date, which gives rise to a violation of record of Legal Requirements, issued by a Governmental Authority with applicable jurisdiction prior to or within twelve (12) months after the Delivery Date.

(lxxxix)       “Expiration Date” has the meaning set forth in Section 2.1(b) hereof.

(xc)            “FC Office Sublease” means that certain Agreement of Sublease, dated as of the date hereof, between Landlord and FC, and any additional office sublease permitted pursuant to Section 13.12 of the FC Office Sublease.

(xci)           “FC Retail Sublease” means that certain Agreement of Sublease, dated as of the date hereof, between Landlord and FC Lion LLC, a New York limited liability company.

(xcii)          “FC Subleases” means the FC Office Sublease and the FC Retail Sublease.

11

(xciii)         “Final MRT Notification” has the meaning set forth in Section 3.4(c) hereof.

(xciv)         “Final Plans and Specifications” means those certain Final Plans and Specifications approved in accordance with the Initial Ground Lease, as modified by any Alteration Plans and Specifications approved in accordance with Section 9.5 hereof.

(xcv)          “First Default Notice” has the meaning set forth in Section 14.2 hereof.

(xcvi)         “First Lease Year” has the meaning set forth in Section 1.1(a)(xxxiii) hereof, the definition of Lease Year.

(xcvii)        “First PA Extension” has the meaning set forth in Section 30.4(d)(i)(B) hereof.

(xcviii)       “First PILOT Year” has the meaning set forth in Section 1.1(a)(clxxxvii) hereof, the definition of PILOT Year.

(xcix)          “Full Insurable Value” means actual replacement cost of the Improvements (exclusive of the cost of excavation, foundations and footings).

(c)              “Full Taxes” means the real property taxes that would be assessed and levied against the Demised Premises and Tenant’s undivided interest in the Common Elements, the owner thereof and the interest of Tenant therein, if the Demised Premises and Tenant’s undivided interest in the Common Elements or the owner thereof were not exempt from such taxes, pursuant to (A) the provisions of Chapter 58 of the Administrative Code of The City of New York and Title 11, Chapter 2, of the Administrative Code of the City of New York, as the same may be amended from time to time, or (B) any statute or ordinance in lieu thereof or in addition thereto to the extent the charges imposed thereby are of a type customarily considered as real property taxes.

(ci)             “Gallery” has the meaning set forth in Section 30.4(b)(iii) hereof.

(cii)            “Governmental Authority” or “Governmental Authorities” means the United States of America, the State of New York, the City and any agency, department, commission, board, bureau, instrumentality or political subdivision of any of the foregoing, now existing or hereafter created, having jurisdiction over the Demised Premises and/or the Common Elements or any portion thereof or any street, road, avenue or sidewalk comprising a part of, or in front of, the Demised Premises and/or the Common Elements, or any vault in or under the Demised Premises and/or the Common Elements.

(ciii)           “Ground Lease” has the meaning set forth in the recitals of this Lease.

(civ)           “Hazardous Materials” means (A) any “hazardous substance” as defined in Section 101(14) of the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C § 9601(14), as amended, (B) any “hazardous waste” as defined in

12

Section 27 1301(1) of the New York Environmental Conservation Law, (C) petroleum or petroleum products, crude oil or any by products thereof, natural gas or synthetic gas used for fuel, (D) any asbestos, asbestos containing material or polychlorinated biphenyl and (E) any additional substances or materials which are classified or considered to be hazardous or toxic under the laws of the State of New York, the United States of America or under any other Legal Requirements.

(cv)            “Hearing” has the meaning set forth in Section 13.10(a) hereof.

(cvi)           “Hearing Officers” has the meaning set forth in Section 13.10(a) hereof.

(cvii)          “▇▇▇” means the New York City Industrial Development Agency, a public benefit corporation of the State of New York.

(cviii)         “▇▇▇ Inducement Date” means the date the ▇▇▇ board of directors adopts an inducement resolution with respect to NYTC.

(cix)           “▇▇▇ Project Agreement” means that certain Project Agreement dated as of December 1, 2001 between the ▇▇▇ and NYTC.

(cx)            “Impositions” means all taxes, fees, assessments and charges that are levied by a Governmental Authority, BID or similar entity against the Demised Premises and/or Tenant’s undivided interest in the Common Elements or the interest of Tenant therein to the extent that same may give rise to a lien against the Demised Premises and/or the Tenant’s undivided interest in Common Elements, including special assessments, personal property and general intangibles taxes, gross receipts, sales, use and occupancy, water and sewer charges, rates and rents to the extent charged separately from Full Taxes, charges for the establishment and operation of any BID in which the Improvements are located, charges for public utilities assessed by a Governmental Authority, BID or similar entity, excises, levies, vault and other license, rent and permit fees and other municipal and governmental impositions and charges, general and special, ordinary and extraordinary, foreseen and unforeseen, of any kind and nature whatsoever, which are during the term of this Lease assessed, levied, charged or imposed upon or become payable out of or become a lien on (A) the Demised Premises and/or Tenant’s undivided interest in the Common Elements, or any part thereof, the appurtenances thereto or the sidewalks, streets or vaults adjacent thereto, (B) any personal property owned by Tenant and located on the Property, or any part thereof, (C) any rent and income received by or for the account of Tenant from any Subtenants or other users or occupants of the Demised Premises and/or Tenant’s undivided interest in the Common Elements, or any part thereof, (D) any franchises, easements or similar rights demised hereunder, licenses and permits as may be appurtenant to the use of the Demised Premises and/or Tenant’s undivided interest in the Common Elements or any documents to which Tenant is a party, creating or transferring an interest or estate in the Demised Premises and/or Tenant’s undivided interest in the Common Elements, or (E) any occupancy, use or possession of the Demised Premises and/or Tenant’s undivided interest in the Common Elements, or any part thereof, the appurtenances thereto or the sidewalks, streets, alleys or vaults adjacent thereto; “Impositions” shall not include any amounts included in Full Taxes, any PILOT, PILOMRT, Theater Surcharge, municipal, state or federal

13

income taxes assessed against Landlord or Tenant, any capital levy, estate, gift, succession, inheritance or transfer taxes, or any corporate franchise taxes or unincorporated business taxes imposed upon any owner of the Land, or any part thereof (“Excluded Taxes”); provided, however, that if at any time during the term of this Lease the present method of taxation or assessment shall be so changed that any Excluded Taxes shall either be added to, or substituted in whole or in part for, Impositions, then any such Excluded Tax shall, to the extent that it is so added or substituted, be deemed to be included within Impositions.

(cxi)           “Improvements” means any buildings and structures, and any building machinery, equipment and fixtures (including Equipment) affixed to and forming a part of such buildings and structures (including the Demised Premises and the Common Elements), which may be erected or located wholly or partially on the Land during the term of this Lease by or on behalf of Landlord, Tenant or any Subtenant, but excluding any personal property owned or leased by Landlord, Tenant or any Subtenant.

(cxii)          “Income Tax Code” means the United States Internal Revenue Code of 1986, as amended from time to time.

(cxiii)         “Indemnified Parties” has the meaning set forth in Section 17.2(a) hereof.

(cxiv)         “Indicted Party” has the meaning set forth in Section 13.10(a) hereof.

(cxv)          “in effect” when used with respect to a Sublease means a Sublease, the term of which has commenced and under which rent has become payable (or if not yet payable, will become payable upon expiration of a rent abatement period provided for in such Sublease) regardless of whether the space leased thereby is occupied by the Subtenant.

(cxvi)         “Initial Ground Lease” has the meaning set forth in the Recitals hereto.

(cxvii)        “Initial Restoration Estimate” has the meaning set forth in Section 11.1 (d) hereof.

(cxviii)       “Initial Taking Estimate” has the meaning set forth in Section 12.3(c) hereof.

(cxix)          “Insurance Guaranty” has the meaning set forth in Section 10.9(a) hereof.

(cxx)           “Insurance Requirements” means all of the terms and conditions of all insurance policies covering, related to or applicable to the Demised Premises and/or the Common Elements, all requirements of the issuers of such policies and all rules, regulations, orders and other requirements or standards issued or promulgated by the National or Regional Board of Fire Underwriters, the National or Regional Fire Protective Association or any other national or regional body in lieu of the foregoing exercising similar functions whose requirements or standards must be complied with in order to obtain any governmental approval

14

or insurance policy required hereundcr, and applicable to or affecting the Demised Premises and/or the Common Elements or the use and occupancy thereof.

(cxxi)          “Interest Rate” means a rate equal to the lesser of (A) three (3) percentage points over the Prime Rate or (B) the maximum rate permitted by applicable law.

(cxxii)         “Interior Construction Work” means any Alteration which (A) relates solely to interior spaces in (1) the Demised Premises and/or (2) the Common Elements, and (B) is not governed by any element of the DUO (it being understood that the DUO may govern certain interior spaces) and does not affect a Structural Component (other than by having a Nonadverse Structural Effect).

(cxxiii)        “Issuing Bank” means any commercial bank reasonably acceptable to Landlord.

(cxxiv)       “Land” means the parcels of land described in Exhibit F-2 attached hereto, together with all right, title and interest, if any, of Landlord in and to any easements, licenses, privileges, rights and appurtenances related thereto.

(cxxv)        “Landlord” means NYTB, its successors and assigns, including, as of the Lease Assignment Date, 42DP.

(cxxvi)       “Landlord’s Obligations” has the meaning set forth in Section 1.1(a)(clviii) hereof, the definition of Obligations.

(cxxvii)      “Landlord’s TSF Statement” has the meaning set forth in Section 3.1(a)(i)(B)(3) hereof.

(cxxviii)     “Last Specified Positive Interval” has the meaning set forth in Section 1.1(a)(vi) hereof, the definition of Adjusted for Inflation.

(cxxix)        “Laws and Regulations” means all federal, state, county, municipal and other governmental statutes, laws, rules, orders, permits, licenses, regulations and ordinances applicable to or affecting this Lease, the Property, the Demised Premises and/or the Common Elements or the use or occupancy thereof, or the owner thereof as owner of the Demised Premises and/or the Common Elements, whether now or hereafter enacted or in force, ordinary or extraordinary, foreseen or unforeseen.

(cxxx)         “Lease” has the meaning set forth in the preamble to this Lease.

(cxxxi)        “Lease Assignment Date” shall have the meaning set forth in the Initial Ground Lease.

(cxxxii)       “Lease Year” means (A) in the event that the Commencement Date does not occur on January 1, the period from the Commencement Date through the second December 31 thereafter (such period, the “First Lease Year”), and (B) each twelve (12) calendar month period commencing on the first January 1 following the First Lease Year and on

15

each anniversary thereof, and in the case of the calendar year in which the term of this Lease shall expire, so much of such calendar year as shall fall within the term of this Lease.

(cxxxiii)      “Legal Requirements” means all Laws and Regulations and all Applicable Judgments.

(cxxxiv)      “Lending Institution” means (A) a savings bank, savings and loan association, commercial bank or trust company (whether acting individually or in a fiduciary capacity) or a Control Affiliate of the foregoing, (B) an insurance company, (C) a real estate investment trust, a trustee or issuer of collateralized mortgage obligations, a loan conduit, or other similar investment entity which is listed on the New York, American Stock Exchange or other regional exchange (or their respective successors), (D) a federal, state, municipal or secular employee’s welfare, benefit, pension or retirement fund, a religious, educational or eleemosynary institution, any governmental agency or entity insured by a governmental agency, a credit union, trust or endowment, (E) any combination of the foregoing entities, (F) any other Person approved by Landlord, such approval not to be unreasonably withheld that (1) shall have a business office in Manhattan and be subject to the jurisdiction of the courts of the State of New York, (2) shall be subject to the supervision of the Comptroller of the Currency of the United States, the federal Securities and Exchange Commission, the Insurance Department or the Banking Department or the Comptroller of the State of New York, the Board of Regents of the University of the State of New York, or the Comptroller of the City or any federal, state or municipal agency or public benefit corporation or public authority advancing or assuring mortgage loans or making payments which, in any manner, assist in the financing, development, operation and maintenance of improvements, (3) shall have a net worth of not less than One Hundred Million Dollars ($100,000,000) and net assets of not less than Two Hundred Fifty Million Dollars ($250,000,000) (as such amounts shall be Adjusted for Inflation on an annual basis from the Commencement Date) at the time of the initial determination of its status as a Lending Institution, (4) is not a Related Entity of Tenant, and (5) is not a Prohibited Person, or (G) any other Person satisfying the conditions of clauses (1) through (5) above.

(cxxxv)       “Letter of Credit” means a clean, irrevocable and unconditional letter of credit, in form and content reasonably satisfactory to Landlord, issued by and drawn upon any Issuing Bank.

(cxxxvi)      “Lobby Sublease Space” has the meaning set forth in Section 34.1(c) hereof.

(cxxxvii)     “Lobby Sublease Space Adjusted Gross Revenue” has the meaning set forth in Section 34.2(c) hereof.

(cxxxviii)  “Major Alteration” has the meaning set forth in Section 9.5 (a) hereof.

(cxxxix)      “Major Contractor” has the meaning set forth in Section 9.6(b)(ii) hereof.

(cxl)           “Manager” means the manager of any portion of the Common Elements under a management agreement.

16

(cxli)          “Modification” has the meaning set forth in Section 13.9 hereof.

(cxlii)         “Mortgage” means any mortgage that constitutes a lien on Tenant’s interest in this Lease and the leasehold estate created hereby.

(cxliii)        “Mortgage Recording Tax” means any mortgage recording tax under Article 11 of the New York State Tax Law, or any successor statute thereto, as the same may now or hereafter be amended, and any New York City mortgage recording tax.

(cxliv)        “Mortgage Recording Tax Savings” means any savings, as provided in Section 3.4 hereof, realized by Tenant on account of Mortgage Recording Tax.

(cxlv)         [INTENTIONALLY OMITTED]

(cxlvi)        “NFP Event” has the meaning set forth in Section 30.4(b) hereof.

(cxlvii)       “NFP Event Shortfall” has the meaning set forth in Section 30.4(b) hereof.

(cxlviii)      “NFP User” has the meaning set forth in Section 30.4(b) hereof.

(cxlix)         “Nonadverse Structural Effect” means any effect of any Alteration on any Structural Component that, taken together with the totality of the remedial measures to be taken in respect of such Alteration, will not have more than an insignificant adverse effect on such Structural Component at the completion of the Alteration.

(cl)             “Nondisturbance Agreement” has the meaning set forth in Section 13.2(b) hereof.

(cli)            [INTENTIONALLY OMITTED]

(clii)           “NYCEDC” means the New York City Economic Development Corporation or any successor in function.

(cliii)          “NYTB” has the meaning set forth in the preamble to this Lease.

(cliv)          “NYTC” means The New York Times Company.

(clv)           [INTENTIONALLY OMITTED]

(clvi)          “NYTC Incentive Agreement” means, collectively, any agreements between NYTC and the City, NYCEDC or the ▇▇▇ with respect to the granting of corporate retention benefits.

(clvii)         [INTENTIONALLY OMITTED]

(clviii)        “Obligations”, and words of like import, mean covenants to pay Charges and other sums payable hereunder and perform acts or fulfill obligations hereunder, as

17

applicable, and all of the other covenants, agreements, terms, conditions, limitations, exceptions and reservations contained in this Lease and the schedules and exhibits attached hereto. The terms “Tenant’s Obligations” and “Landlord’s Obligations”, and words of like import, mean the Obligations of this Lease which are imposed upon and are to be performed, observed or complied with by Tenant or by Landlord, as the case may be.

(clix)          “Occupied Square Foot” means (A) each Rentable Square Foot of the Demised Premises, (B) with respect to the Roof Top Garden Space, each Rentable Square Foot within the Roof Top Garden Space and (C) with respect to the Lobby Sublease Space, each Rentable Square Foot within the Lobby Sublease Space.

(clx)           “Office PILOT” means (a) the rate set forth under “Office PILOT” on Schedule 1 attached hereto multiplied by (b) the number of Taxable Square Feet, exclusive of any Taxable Square Feet with respect to which Retail PILOT is being paid.

(clxi)          “Office Space” means all Taxable Square Feet other than that which is attributable to the Retail Space.

(clxii)         “Operative Agreements” means (A) all Condominium Documents, and (B) the applicable building management agreement.

(clxiii)        “Organized Crime Figure” means any Person (A) who has been convicted in a criminal proceeding for a felony or any crime involving moral turpitude or that is an organized crime figure or is reputed to have substantial business or other affiliations with an organized crime figure, or (B) who, directly or indirectly controls, is controlled by, or is under common control with, a Person who has been convicted in a criminal proceeding for a felony or any crime involving moral turpitude or that is an organized crime figure or is reputed to have substantial business or other affiliations with an organized crime figure. The determination as to whether any Person is an organized crime figure or is reputed to have substantial business or other affiliations with an organized crime figure shall be within the sole discretion of Landlord, which discretion shall be exercised in good faith; provided, however, that such Person shall not be deemed a Prohibited Person if the City, having actual knowledge that such Person meets the criteria set forth in clauses (A) or (B) above of this definition, entered into a contract and is then doing business with such Person.

(clxiv)        “Overdue Payment” has the meaning set forth in Section 3.7(c) hereof.

(clxv)         “PA Budgeted Retail Construction Costs” means the total, actual cost to construct the PA Retail Space as reasonably approved by Tenant’s construction lender (so long as such construction lender is a Lending Institution) or by Landlord (if, in respect of the PA Retail Space, Tenant has no construction lender which is a Lending Institution), as indicated on a final construction budget approved, as the case may be, by such construction lender or by Landlord (the construction budget for the PA Retail Space having been prepared separately from the overall construction budget for the Improvements, and having been provided to Landlord as a Verified Statement), including the Transaction Price and all other hard and soft

18

costs (other than land acquisition costs above the Transaction Price), in each case, reasonably allocable, on a square foot basis, to the PA Retail Space.

(clxvi)        “PA Effective Date” has the meaning set forth in Section 30.4(b) hereof.

(clxvii)       “PA NFP Operating Costs” has the meaning set forth in Section 30.4(b) hereof.

(clxviii)      “PA Obligation Term” has the meaning set forth in Section 30.4(b) hereof.

(clxix)         “PA Obligation Termination Date” has the meaning set forth in Section 30.4(b) hereof.

(clxx)          “PA Opening Date” has the meaning set forth in Section 30.4(b) hereof.

(clxxi)         “PA PILOT Reduction” has the meaning set forth in Section 30.4(e)(iii) hereof.

(clxxii)        “PA Retail Space” means any Retail Space which is located within, and ancillary to, the Public Amenity. Notwithstanding anything to the contrary herein, the Gallery and the Auditorium shall not constitute PA Retail Space so long as any concessions or other retail operations conducted therein are incidental or ancillary to, and are associated with, the occurrence of Events in the Public Amenity.

(clxxiii)       “PA Year” has the meaning set forth in Section 30.4(b) hereof.

(clxxiv)      “Percentage Allocation” has the meaning set forth in the Site 8 South LADA.

(clxxv)       “Percentage Rent” means the amounts specified as Percentage Rent and payable by Tenant pursuant to Section 3.2 and Section 34.3(c) hereof.

(clxxvi)      “Percentage Rent Report” has the meaning set forth in Section 3.2(c) hereof.

(clxxvii)     “Permitted Developer” means a legal entity composed only of NYTC or its wholly-owned, single-purpose Control Affiliates.

(clxxviii)    “Permitted Disposition” has the meaning set forth in Section 13.10(d) hereof.

(clxxix)       “Permitted Encumbrances” means (A) the matters described in Exhibit G attached hereto and (B) any other encumbrance on the Property expressly agreed to in writing by the parties hereto and, subject to Section 3.17 hereof, any violation that will, by its

19

nature, be cured or otherwise rendered inconsequential due to the demolition of the Existing Improvements (as defined in the Initial Ground Lease).

(clxxx)        “Permitted Transferee” means a Person who (A) either (1) directly and/or together with its Control Affiliates, owns and/or manages, and has not less than five (5) years’ experience in the ownership and/or management of, at least five million (5,000,000) square feet of office space or (2) retains a qualified manager having the qualifications set forth in clause (A)(l), above, (B) is of sufficient financial condition to perform the obligations to be assumed by such proposed assignee (Landlord having been furnished with evidence reasonably satisfactory to Landlord of such financial condition) and (C) is not a Prohibited Person.

(clxxxi)       “Permitted Use” has the meaning set forth in Section 7.1(a) hereof.

(clxxxii)      “Person” means (A) an individual, corporation, limited liability company, partnership, joint venture, estate, trust, unincorporated association or other entity, (B) any federal, state, county or municipal government (or any bureau, department, agency or instrumentality thereof), and (C) any fiduciary acting in such capacity on behalf of any of the foregoing.

(clxxxiii)     “PILOMRT” means the payments in lieu of Mortgage Recording Tax payable by Tenant to Landlord pursuant to Section 3.4(b) hereof.

(clxxxiv)     [INTENTIONALLY OMITTED]

(clxxxv)      [INTENTIONALLY OMITTED]

(clxxxvi)     “PILOT” means the payments in lieu of real estate taxes payable by Tenant to Landlord pursuant to Section 3.1 hereof.

(clxxxvii)    “PILOT Year” means (A) in the event that the Delivery Date does not occur on January 1, the period from the Delivery Date through the second December 31 thereafter (such period, the “First PILOT Year”), and (B) each twelve (12) calendar month period commencing on the first January 1 following the First PILOT Year and on each anniversary thereof.

(clxxxviii)  “Possession” means good and indefeasible leasehold title to, and actual vacant occupancy and possession of, all of the Property, free and clear of all leases, licenses, tenancies, occupancies, liens or other similar encumbrances, and any claims to or rights of others attaching to the Property, except Permitted Encumbrances.

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

(cxc)          “Principal” means, with respect to any Person, (A) any director or the president, any vice president, the treasurer, or the secretary thereof if such Person is a

20

corporation, (B) any general partner of a partnership or managing member of a limited liability company, or (C) any shareholder, limited partner, member or other Person having a direct or indirect economic interest in such Person, whether beneficially or of record, in excess of ten percent (10%) of all of the issued and outstanding shares, partnership interests, limited liability company interests or other ownership interests of such Person. In calculating the percentage interest of any shareholder, partner, member or other beneficially interested Person referred to in the prior sentence, the interest in the equity of any affiliate of such shareholder, partner, member or beneficially interested Person shall be attributed to such shareholder, partner, member or beneficially interested Person.

(cxci)         “Pro Rata Cost” has the meaning set forth in Section 30.4(b)(xii) hereof.

(cxcii)        “Production Architect” means any Architect proposed by Tenant and approved (or deemed approved) by Landlord pursuant to Section 9.6(a) hereof as the production architect working in affiliation with the Design Architect.

(cxciii)       “Prohibited Person” means (A) any Person (1) that is in default after notice and beyond any applicable cure period, of such Person’s obligations under any material written agreement with the City, the State or any of their instrumentalities, or (2) that directly controls, is controlled by, or is under common control with a Person that is in default after notice and beyond any applicable cure period, of such Person’s obligations under any material written agreement with the City, the State or any of their instrumentalities, unless, in each instance, such default or breach either (x) has been waived in writing by the City, the State or any of their instrumentalities as the case may be or (y) is being disputed in a court of law, administrative proceeding, arbitration or other forum or (z) is cured within thirty (30) days after a determination and notice to Tenant from Landlord that such Person is a Prohibited Person as a result of such default; (B) any Person that is an Organized Crime Figure; (C) any government, or any Person that is directly or indirectly controlled (rather than only regulated) by a government, that is finally determined to be in violation of (including, but not limited to, any participant in an international boycott in violation of) the Export Administration Act of 1979, as amended, or any successor statute, or the regulations issued pursuant thereto, or any government that is, or any Person that, directly or indirectly, is controlled (rather than only regulated) by a government that is subject to the regulations or controls thereof; (D) any government, or any Person that, directly or indirectly, is controlled (rather than only regulated) by a government, the effects or the activities of which are regulated or controlled pursuant to regulations of the United States Treasury Department or executive orders of the President of the United States of America issued pursuant to the Trading with the Enemy Act of 1917, as amended; (E) any Person that is in default in the payment to the City of any real estate taxes, sewer rents or water charges totaling more than $10,000, unless such default is then being contested in good faith in accordance with applicable Legal Requirements or unless such default is cured within thirty (30) days after a determination and notice to Tenant from Landlord that such Person is a Prohibited Person as a result of such default; or (F) any Person (1) that has solely owned, at any time during the 3-year period immediately preceding a determination of whether such Person is a Prohibited Person, any property which, while in the ownership of such Person, was acquired by the City by in rem tax foreclosure, other than a property in which the City has released or is in the process of releasing its interest pursuant to the Administrative Code of the City, or (2) that, directly or

21

indirectly controls, is controlled by, or is under common control with a person that has owned, at any time in the 3-year period immediately preceding a determination of whether such Person is a Prohibited Person, any property which, while in the ownership of such person, was acquired by the City by in rem tax foreclosure, other than a property in which the City has released or is in the process of releasing its interest to such person pursuant to the Administrative Code of the City.

(cxciv)              “Project Agreement” means that certain Site 8 South Project Agreement, dated as of the date hereof, by and among ESDC, 42DP, the City, NYTB, FC Lion LLC and NYT Real Estate Company LLC, and any amendments thereto.

(cxcv)               “Project Documents” has the meaning set forth in the Recitals to this Agreement.

(cxcvi)              “Project Participants” means (A) Tenant and Control Affiliates of Tenant, (B) the Condominium Association, and (C) any Manager.

(cxcvii)             “Property” means the Land and the Improvements.

(cxcviii)            “Public Amenity” has the meaning set forth in Section 30.4(a) hereof.

(cxcix)              “Public Amenity Space” has the meaning set forth in Section 30.4(b)(xiv) hereof.

(cc)                   “Public Parties” means 42DP, ESDC, the City and NYCEDC.

(cci)                  “Public Party Expenses” has the meaning set forth in the Site 8 South LADA.

(ccii)                 “Purchase Option” has the meaning set forth in Section 5.1(a) hereof.

(cciii)                “Purchase Option Closing Date” has the meaning set forth in Section 5.1(a) hereof.

(cciv)               “Purchase Option Notice” has the meaning set forth in Section 5.1(a) hereof.

(ccv)                “Purchase Price” means Ten Dollars ($10).

(ccvi)               “Purchaser” has the meaning set forth in Section 5.1(d) hereof.

(ccvii)              “Qualified Certifying Party” means with respect to any Person that is a partnership or limited liability company, a member or general partner thereof, or in the case of a Person or general partner that is a corporation, the President, Vice President, Chief Financial Officer or Treasurer of such Person or general partner.

22

(ccviii)             [INTENTIONALLY OMITTED]

(ccix)                “Recognized Mortgage” means a Mortgage (A) that is held by a Lending Institution, (B) that complies with the provisions of this Lease, and (C) a copy of which has been delivered to Landlord, together with a certification of a Qualified Certifying Party of Tenant confirming that the copy is a true and complete copy of such Mortgage and giving the name and address of the mortgagee thereunder.

(ccx)                 “Recognized Mortgagee” means the holder of a Recognized Mortgage.

(ccxi)                “Related Entity” means, as to any Person, any other Person that controls, is controlled by, or is under common control with, such Person; for the purposes of this definition, “control” (and its correlative meanings, “controlled by” and “under common control with”) means (A) direct or indirect ownership of more than fifty percent (50%) of the outstanding voting capital stock of a corporation or more than fifty percent (50%) of the beneficial interests of any other entity or (B) the possession, directly or indirectly, of the power to direct or cause the direction of the business decisions of such corporation or other entity.

(ccxii)               “Rentable Square Feet” or “Rentable Square Foot” means rentable square footage of the Improvements, as determined in accordance with the Standard Method for Measuring Floor Area in Office Buildings ANSI Z65.1-1996), as promulgated by the Building Owners and Managers Association (BOMA) International or any successor entity.

(ccxiii)              “Replacement Design Architect” has the meaning set forth in Section 9.6(a)(i) hereof.

(ccxiv)              “Replacement Design Architect Approval Criteria” has the meaning set forth in Section 9.6(a)(i) hereof.

(ccxv)               “Restoration” has the meaning set forth in Section 11.1(a) hereof.

(ccxvi)              “Restoration Funds” has the meaning set forth in Section 11.2(a) hereof.

(ccxvii)             “Restore” has the meaning set forth in Section 11.1(a) hereof.

(ccxviii)            “Retail PILOT” means (A) the rate set forth under “Retail PILOT” in Schedule 1 attached hereto multiplied by (B) the sum of (1) the number of gross square feet of above-grade Retail Space, (2) the number of gross square feet of below-grade Revenue Producing Retail Space for which a Taxable Square Feet Delivery Date has occurred, (3) Tenant’s Percentage Allocation of 10,000 Square Feet, representing the Roof Top Garden Space and (4) if (and for so long as) the Lobby Sublease Space is used for retail purposes, Tenant’s Percentage Allocation of the number of gross square feet of the Lobby Sublease Space (collectively “Taxable Retail Square Feet”).

23

(ccxix)              “Retail Space” means (A) any portion of the Demised Premises to be used for retail purposes or any purposes ancillary thereto (it being understood and agreed that, for purposes only of computing Percentage Rent, if the PA Retail Space is less than 5,000 Square Feet, then the area of all of the PA Retail Space shall not be considered “Retail Space” for such purposes, and if the PA Retail Space equals or exceeds 5,000 Square Feet the area of all of the PA Retail Space shall be considered “Retail Space” for such purposes) and (B) with respect to Tenant’s obligations in connection with Retail PILOT, the Common Elements Leaseable Space.

(ccxx)               “Revenue-Producing Retail Space” means that portion of the Retail Space leased or otherwise demised to a Subtenant, which space is being used for the selling of goods, merchandise or services.

(ccxxi)              “Roof Top Garden Adjusted Gross Revenues” has the meaning set forth in Section 34.2(d) hereof.

(ccxxii)             “Roof Top Garden Space” has the meaning set forth in Section 34.1(b) hereof.

(ccxxiii)            “Roof Top Mechanical Space” means all the mechanical space located on and above the 52nd floor of the Improvements (as shown on the schematic design plan drawings set forth on Exhibit I-1 attached to the Initial Ground Lease) (it being understood that the space on and above such 52nd floor of the Improvements shall only be used for (A) housing mechanical equipment, (B) siting the Roof Top Garden Space and (C) the development of the Roof Top Garden Improvements (as defined in the Initial Ground Lease)).

(ccxxiv)            [INTENTIONALLY OMITTED]

(ccxxv)             [INTENTIONALLY OMITTED]

(ccxxvi)            [INTENTIONALLY OMITTED]

(ccxxvii)           “Scheduled Expiration Date” means the date set forth in Section 2.1 hereof as the originally scheduled Expiration Date.

(ccxxviii)          “Scheduled PILOT Conversion Date” means the twenty-ninth (29th) anniversary of the first December 31 after the Delivery Date.

(ccxxix)             “Second PA Extension” has the meaning set forth in Section 30.4(d)(i)(B) hereof.

(ccxxx)              “Security Deposit” has the meaning set forth in Section 10.9(a) hereof.

(ccxxxi)             “Severance Subleases” means this Lease and the FC Subleases.

24

(ccxxxii)            “Site 8 South LADA” means that certain Site 8 South Land Acquisition and Development Agreement, dated as of the date hereof, entered into by 42DP, NYCEDC and NYTB.

(ccxxxiii)           “Site 8 South Subway Agreement” means that certain Subway Entrance Agreement, dated as of the date hereof, among Landlord, The New York City Transit Authority, 42DP and The City of New York.

(ccxxxiv)          “Site Acquisition Costs” has the meaning set forth in the Site 8 South LADA.

(ccxxxv)           “Square Feet” or “Square Foot” means square footage computed with reference to the gross square footage of the Improvements, above grade, measured from the outside of the exterior walls for each floor and including, without limitation, mechanical space (other than the Roof Top Mechanical Space), floor cutouts for ducts, interior partition walls and loading areas. Because the Improvements will include a double curtain wall (i.e., an interior glass curtain wall and an exterior screen curtain wall), “exterior walls” for purposes of this definition means the inner glass curtain wall of the Improvements, as long as and to the extent that there is no usable floor area between the two components of the curtain wall.

(ccxxxvi)          “Stabilized Lease Year” has the meaning set forth in Section 14.3(g) hereof.

(ccxxxvii)         “Structural Alteration” has the meaning set forth in Section 9.5(a) hereof.

(ccxxxviii)        “Structural Component” means, in respect of the Improvements, (A) the roof, (B) exterior walls and (C) any load-bearing member, including load-bearing columns and slabs.

(ccxxxix)           “Sublease” means any sub-sublease, license, concession, occupancy or other agreement pursuant to which a Subtenant occupies or otherwise uses all or any portion of the Demised Premises.

(ccxl)                “Submission Date” has the meaning set forth in Section 16.2(b)(iv) hereof.

(ccxli)               “Substantial Casualty” means a Casualty that would require a Restoration the cost of which is greater than eighty percent (80%) of the replacement cost of the Improvements.

(ccxlii)              “Substantial Completion Date” means the Substantial Completion Date determined in accordance with the Initial Ground Lease.

(ccxliii)             “Substantially All Of” has the meaning set forth in Section 12.1(a) hereof.

25

(ccxliv)             “Subtenant” means any space tenant, subtenant, operator, licensee, franchisee, concessionaire or other occupant of the Demised Premises (or any portion thereof).

(ccxlv)              “Taking” means, other than in respect of the Condemnation, a taking, or voluntary conveyance, of title to, or any interest in, the Property, the Demised Premises or the Common Elements, or any part thereof, or of the right to use all or any part thereof pursuant to, as a result of, in lieu of or in anticipation of the exercise of the right of condemnation, expropriation or eminent domain, and upon such a Taking, the Property, the Demised Premises or the Common Elements, or such part thereof, shall be deemed to have been “taken”.

(ccxlvi)             “Taxable Retail Square Feet” has the meaning set forth in Section l.1(a)(ccxviii) hereof, the definition of Retail PILOT.

(ccxlvii)            “Taxable Square Feet” means, as determined pursuant to Section 3.1(a)(i)(B) hereof, the sum of: (A) the total number of Square Feet comprising the Demised Premises (as set forth in the Total Taxable Square Feet Certificate or, as of the date of its approval or deemed approval, the most recent Tenant’s TSF Certificate), (B) the number of Allocated Square Feet (as set forth in the Total Taxable Square Feet Certificate), (C) any below-grade Taxable Retail Square Feet demised to Tenant pursuant to this Lease (as set forth in the Total Taxable Square Feet Certificate or, as of the date of its approval or deemed approval, the most recent Tenant’s TSF Certificate) and (D) the total number of Square Feet comprising the Roof Top Garden Space; “Taxable Square Feet” explicitly excludes the Roof Top Mechanical Space.

(ccxlviii)           [INTENTIONALLY OMITTED]

(ccxlix)             “Tenant” has the meaning set forth in the preamble to this Lease.

(ccl)                  “Tenant’s Obligations” has the meaning set forth in Section 1.1(c)(clviii) hereof, the definition of Obligations.

(ccli)                 “Tenant’s Sublet Notice” has the meaning set forth in Section 13.2(b)(vii) hereof.

(cclii)                “Tenant’s Subway Improvements” has the meaning set forth in the Initial Ground Lease.

(ccliii)               “Tenant’s TSF Certification” has the meaning set forth in Section 3.1(a)(i)(B)(2) hereof.

(ccliv)              “Termination Notice” has the meaning set forth in Section 14.2 hereof.

26

(cclv)               “Theater Management Entity” means The New 42nd Street, Inc. or any other not-for-profit organization which promotes, operates and/or oversees one or more historic theaters within the ▇▇▇▇ ▇▇▇▇▇▇ Project.

(cclvi)              “Theater Surcharge” has the meaning set forth in Section 3.5(a) hereof.

(cclvii)             “Theater Surcharge Commencement Date” has the meaning set forth in Section 3.5(b) hereof.

(cclviii)            “Theater Surcharge Report” has the meaning set forth in Section 3.5(d) hereof.

(cclix)               “Total SAC Amount” means the total of all Site Acquisition Costs.

(cclx)                “Total Taxable Square Feet” means, as of the Lease Assignment Date, the sum of (1) 1,380,000 Square Feet, (2) the total number of Square Feet of Discretionary Inside Mechanical Space within the Improvements, and (3) the number of below-grade Taxable Retail Square Feet, all as set out in the Total Taxable Square Feet Certificate.

(cclxi)               “Total Taxable Square Feet Certificate” means a certification delivered in accordance with Section 32.1(a)(iii) of the Initial Ground Lease, setting forth as of the Lease Assignment Date (A) the Total Taxable Square Feet of the Improvements, and (B) the Taxable Square Feet comprising each Demised Premises (under each Severance Sublease), which shall be comprised of (1) the number of Taxable Square Feet, above-grade, situated within the applicable Demised Premises, (2) an amount equal to the product of (a) the number of Square Feet comprising the Common Elements and (b) a percentage equal to the Common Interest (as defined in the Condominium Declaration) attributed to the condominium unit comprising the applicable Demised Premise (such product, the “Allocated Square Feet”), and (3) any then identified below-grade Taxable Retail Square Feet (as defined in the Initial Ground Lease), and (4) the Square Feet comprising the Roof Top Garden Space.

(cclxii)              “Transaction Price” means $85,560,000.

(cclxiii)             “Transfer” has the meaning set forth in Section 13.1(a) hereof.

(cclxiv)             “Unavoidable Delay(s)” means actual delays (after taking into account all reasonable measures that are taken or should reasonably have been taken by Tenant to mitigate the effect of the following) caused by (A) acts of God, war, sabotage, hostilities, invasion, insurrection, riot, mob violence, malicious mischief, embargo, enemy action, civil commotion, earthquake, flood, fire or other casualty, government restriction, strikes, labor troubles, unknown physical conditions which differ materially from those ordinarily found to exist and generally recognized as inherent in the construction of office building in Manhattan and inability to procure labor, equipment, materials or supplies (exclusive of delays inherent in the ordering of long-lead items) which are not attributable to the improper acts or omissions of Tenant or its affiliates, (B) any litigation (not instituted, financed or supported by either of Tenant any Related Entity of Tenant) which results in an injunction prohibiting or otherwise

27

delaying the commencement of any Alteration or the continuation of such Alteration, and (C) any other matter beyond the reasonable control of Tenant and not normally associated with a project of the nature described herein. Inability (1) to pay a sum of money or (2) to obtain or to timely obtain (a) any permits or certificates from applicable governmental authorities or (b) financing from a lender, shall not constitute Unavoidable Delay. The period of delay caused by any occurrence of Unavoidable Delay shall not be deemed to commence any earlier than ten (10) days before the date Landlord receives notification from Tenant of such occurrence; provided, however, that no such notification shall be valid unless Tenant shall substantiate the basis for any claim of Unavoidable Delay made therein to the reasonable satisfaction of the Public Parties within twenty (20) days thereafter. Tenant shall advise Landlord in such notice as to the measures taken or proposed to be taken by Tenant to mitigate the delay caused by such occurrence of Unavoidable Delay and thereafter to keep Landlord reasonably informed as to the status of such measures, and notify Landlord as to the termination of the occurrence of Unavoidable Delay within ten (10) days thereafter; provided, however, Tenant’s failure to provide any such notice of termination shall not prejudice Tenant’s rights to claim Unavoidable Delay.

(cclxv)              “Venue” has the meaning set forth in Section 30.4(b) hereof.

(cclxvi)             “Verified Statement” means a statement in reasonable detail and in a reasonable form prescribed by Landlord, prepared in a consistent manner and certified as being true, correct and complete by a Qualified Certifying Party or the Certified Public Accountants, unless such statement pertains to an annual (or longer) period, in which case it shall be so certified by both a Qualified Certifying Party and the Certified Public Accountants.

(cclxvii)            “Zoning Resolution” means the Zoning Resolution of The City of New York or any successor statute, as the same may be amended or otherwise modified.

Section 1.2  Rules of Construction. The following rules of construction shall be applicable for all purposes of this Lease and all agreements supplemental hereto, unless the context otherwise requires:

(a)    The terms “hereby”, “hereof, “hereto”, “herein”, “hereunder” and any similar terms shall refer to this Lease, and “hereafter” shall mean after, and “heretofore” shall mean before, the date of this Lease.

(b)    Words of the masculine, feminine or neuter gender shall mean and include the correlative words of the other genders and words importing the singular number shall mean and include the plural number and vice versa.

(c)    The terms “include”, “including” and similar terms shall be construed as if followed by the phrase “without being limited to”.

(d)    This Lease shall be governed by, and construed in accordance with, the law of the State of New York applicable to agreements to be performed wholly within such State.

28

(e)    Whenever a party hereto “shall” perform (or cause to be performed) any Obligations hereunder, such performance shall be at such party’s sole cost and expense unless otherwise expressly provided.

Section 1.3  Captions/Table of Contents. The captions under the article and section numbers and the table of contents of this Lease are for convenience and reference only and in no way define, limit or describe the scope or intent of this Lease nor in any way affect this Lease.

29

ARTICLE II
LEASE OF DEMISED PREMISES AND COMMON ELEMENTS; TERM OF LEASE

Section 2.1  Demised Premises and Common Elements; Term.

(a)    Demise and Lease. (i) During the term described in Section 2.1(b) hereof, Landlord hereby demises and leases to Tenant, and Tenant hereby hires and takes from Landlord, pursuant to the provisions of this Lease, the Demised Premises, together with an undivided interest in the Common Elements (which undivided interest, from and after the Lease Assignment Date, shall equal the Common Interest (as defined in the Condominium Declaration) attributable to the condominium unit(s) comprising the Demised Premises under the Condominium Declaration), subject only to Permitted Encumbrances.

(ii)         During the term of this Lease, Landlord shall not create or consent to any encumbrance or permit any lien on the Property or the leasehold interest under the Ground Lease (other than an encumbrance or lien resulting from the prosecution by Landlord of any remedy for the enforcement of any provision of this Lease) without Tenant’s prior written consent and, with respect to the Common Elements, the consent of all other tenants under Severance Subleases.

(iii)        Landlord and Tenant acknowledge and agree: (A) that the demise set forth in this Section 2.1(a) is expressly intended to include all rights and obligations of Landlord under the Condominium Documents in respect of the Demised Premises and the interest in the Common Elements appurtenant thereto so that Tenant is vested with, and assumes, all rights and obligations of a Unit Owner, as such term is defined in and understood under the Condominium Documents; (B) except as set forth in this Lease, Landlord has retained no rights or obligations as a Unit Owner under the Condominium Documents with respect to the Demised Premises and the Common Elements; and (C) no action or omission in respect of the Demised Premises or the Common Elements taken by or on behalf of Tenant, or any Person claiming by, though or under Tenant, may or will be characterized or treated as a default by Landlord under any Condominium Document.

(b)    Term. Subject to the terms of Section 2.1(d) hereof, the leasehold estate granted in Section 2.1(a) hereof is for a term of ninety-nine (99) years, commencing on the Commencement Date, and ending upon the earlier of the date immediately preceding the ninety-ninth (99th) anniversary of the Commencement Date or the date on which this Lease shall sooner terminate as hereunder provided (the “Expiration Date”), upon and subject to the covenants, agreements, terms, provisions and limitations herein set forth, all of which covenants, agreements, terms, provisions and limitations Landlord and Tenant covenant and agree to perform and observe.

(c)    Designation of Condominium Units. On the Lease Assignment Date, Landlord and Tenant shall enter into an amendment of this Lease to modify Exhibit D attached to the Initial Ground Lease to identify the condominium units comprising the Demised Premises.

30

(d)    Effectiveness of Lease. Landlord and Tenant acknowledge and agree that while the demise provided for herein is binding and effective as of the Commencement Date, subject to Section 13.11(b) hereof, neither Landlord nor Tenant shall, or shall be responsible or permitted to, undertake, perform or complete any Obligation under this Lease, or have any rights or liabilities under this Lease, until the Lease Assignment Date. Landlord and Tenant further agree that this Lease is and shall remain at all times subject and subordinate to the Ground Lease.

Section 2.2  Condition of Demised Premises and Common Elements. Tenant is fully familiar with the Demised Premises and Common Elements, the condition thereof and the Permitted Encumbrances, and Tenant accepts and agrees to lease the same in their then “AS IS” condition on the Lease Assignment Date and without any representation or warranty, express or implied, in fact or by law, by 42DP, NYCEDC, ESDC or the City, except as expressly provided in this Lease, and without recourse to 42DP, NYCEDC, ESDC or the City as to the title thereto, the nature, condition or usability thereof or the use or uses to which the Demised Premises and Common Elements or any part thereof may be put, except as expressly provided in this Lease.

Section 2.3  Waiver of Right to Rescind. Tenant waives any right to rescind this Lease under Section 223-a of the New York State Real Property Law or under any present or future statute of similar import then in force and further expressly waives the right to recover any damages which may result from Landlord’s failure to deliver possession of the Demised Premises. Tenant agrees that this Section 2.3 is intended to constitute “an express provision to the contrary” within the meaning of said Section 223-a.

31

ARTICLE III
CHARGES AND FEES

Section 3.1  PILOT.

(a)       Determination of PILOT. Tenant covenants and agrees to pay to Landlord, during the term of this Lease, payments in lieu of real estate taxes (“PILOT”) determined as follows:

(i)     Prior to Scheduled PILOT Conversion Date.

(A)      In respect of the first PILOT payment period after the Lease Assignment Date through the day before the Scheduled PILOT Conversion Date, Tenant shall pay to Landlord an amount, per annum, equal to the lesser of (1) Full Taxes and (2) [a] the sum of Office PILOT and Retail PILOT for the applicable PILOT Year minus [b] (i) any Theater Surcharge payable in respect of such applicable PILOT Year, and (ii) any applicable PA PILOT Reduction. Landlord’s calculation of PILOT shall be binding, absent computational error.

(B)       The number of Taxable Square Feet shall be determined as follows:

(1)         The parties hereto agree that as of the Lease Assignment Date, the Taxable Square Feet and the Total Taxable Square Feet shall be as set forth in the Total Taxable Square Feet Certificate provided to Landlord and 42DP on or prior to the Lease Assignment Date.

(2)         Upon the completion of any Alteration, transfer or other event which would potentially cause a change in the number of Taxable Square Feet in the Demised Premises or the Roof Top Garden Space, including, without limitation, the Allocated Square Feet, Tenant shall: [a] cause an Architect, approved (or deemed approved) by Landlord pursuant to Section 9.6(a) hereof, to submit an Architect’s Certification to Landlord and Tenant (it being agreed that such Architect’s Certification shall be deemed approved by Landlord unless disputed within ten (10) Business Days of receipt thereof by Landlord) confirming that the number of Taxable Square Feet certified to pursuant to the Total Taxable Square Feet Certificate, or pursuant to an earlier Architect’s Certificate provided pursuant to this Section 3.1(a)(i)(B)(2), is still correct (or, if the number of any of such Square Feet has changed, setting forth the correct number and the reasons that such number has changed); and [b] provide to Landlord a certification of Tenant (the “Tenant’s TSF Certification”) setting forth, as of such date (X) the aggregate number of Square Feet of below-grade space in the Demised Premises that is Revenue-Producing Retail Space and (Y) the total number of Taxable Square Feet. In any event and in addition to the circumstances described above, on each January 1 and July 1 following the Substantial Completion Date, Tenant shall provide to Landlord a Tenant’s TSF Certification.

(3)         Subject to Landlord’s right to dispute a Tenant’s TSF Certification pursuant to this Section 3.1(a)(i)(B)(3), each Tenant’s TSF Certification shall be considered a final and binding determination of the number of Taxable Square Feet certified

32

therein. Within twenty (20) Business Days after the delivery of a Tenant’s TSF Certification, Landlord may deliver to Tenant a statement (“Landlord’s TSF Statement”) disapproving such Tenant’s TSF Certification and indicating in reasonable detail (to the extent then ascertainable by Landlord) the reasons for the disapproval. In the event that Landlord provides a Landlord’s TSF Statement, Tenant and Landlord shall attempt to agree upon the then actual number of Taxable Square Feet. In the event that Landlord and Tenant are unable to agree upon the then actual number of Taxable Square Feet within fifteen (15) Business Days of Tenant’s receipt of Landlord’s TSF Statement, the disagreement shall be referred to arbitration in accordance with Section 16.2 hereof. Failure of Landlord to provide a Landlord’s TSF Statement within the indicated period shall be deemed approval of the number of Taxable Square Feet set forth in the applicable Tenant’s TSF Certification. Notwithstanding any other term in this Section 3.1(a)(i)(B) to the contrary, it is acknowledged and agreed that for the purpose of calculating PILOT, no Architect’s Certification submitted under this Section 3.1(a)(i)(B) shall reduce the number of Total Taxable Square Feet to fewer than the number determined pursuant to clause (1) of this Section 3.1(a)(i)(B).

(ii)         On and After Scheduled PILOT Conversion Date. On and after the Scheduled PILOT Conversion Date through the expiration of the term of this Lease, Tenant shall pay to Landlord an amount, per annum, equal to Full Taxes.

(b)       PILOT Payment.

(i)          From and after the first PILOT payment period after the first of the earlier of January 1 or July 1 to occur after the Lease Assignment Date, PILOT shall be payable in advance, in equal semi-annual installments, on or prior to January 1 and July 1 of each and every Lease Year. Upon the Expiration Date or earlier termination of this Lease, Landlord shall repay or provide an appropriate credit for any prepaid PILOT in respect of the period after such Expiration Date or earlier termination of this Lease.

(ii)         Except as qualified by the immediately following sentence, for so long as any portion of Landlord’s obligation to reimburse Excess Site Acquisition Costs (Allocated) to Tenant shall remain owing and unpaid, Tenant’s payment of PILOT shall be in the form of (x) a credit against eighty-five percent (85%) of the PILOT then due and payable pursuant to Section 3.1 hereof, in reimbursement of the Excess Site Acquisition Costs (Allocated) and (y) a payment of the remaining fifteen percent (15%) as otherwise required in accordance with the provisions of this Lease. The offset described in the immediately preceding sentence is available to Tenant if, and only if: (A) no Event of Default has occurred and is continuing hereunder (but such right shall be immediately reinstated, on a prospective basis only, upon Tenant’s curing of such Event of Default); (B) the PILOT payment required by this Section 3.1 is made in a timely manner; and (C) notice is provided to Landlord with each payment of PILOT setting forth the outstanding balance of the unreimbursed Excess Site Acquisition Costs (Allocated), such notice to be substantially in the form set forth in Exhibit H attached hereto. If such conditions are not fulfilled, then Tenant shall pay 100% of the PILOT then due and payable and the provisions of Section 3.04 of the Site 8 South LADA shall apply to Landlord’s obligation to reimburse the Excess Site Acquisition Costs (Allocated).

33

(c)       Tax Contest Proceeding.

(i)          Tenant shall have the exclusive right (but shall be under no obligation) to seek and agree upon reductions in the valuation of the condominium unit(s) comprising the Demised Premises, as assessed for real property tax purposes and to prosecute any action or proceeding in connection therewith by appropriate proceedings, in accordance with the Charter and Administrative Code of the City of New York, as it may be amended, including, without limitation, the right to prosecute administrative and/or judicial proceedings and judicial review and appeal of any decision which Tenant, in its sole discretion, considers adverse, and the right to settle or compromise any such proceeding.

(ii)         If Tenant institutes a tax assessment reduction or other action or proceeding pursuant to Section 3.1(c)(i) hereof to reduce Full Taxes, Tenant shall nevertheless continue to pay, during the pendency of such action or proceeding, the full amount of PILOT required under Section 3.1(a) hereof for the applicable period. If there is a final determination of any such tax reduction or other action or proceeding in Tenant’s favor, Tenant shall offset the amount of any PILOT paid to Landlord under Section 3.1(a) hereof by (A) the amount by which PILOT paid by Tenant for any applicable period exceeds the amount of Full Taxes for such period, as so reduced, and (B) interest for the applicable period to the extent (if any) that such interest would be payable in comparable circumstances by the applicable taxing authority if the condominium unit(s) comprising the Demised Premises were not tax exempt, provided that any such amount (together with such interest, if any) unrecovered at the expiration of the term of this Lease shall be paid by Landlord to Tenant. In the event that there is a tax protest filed by Tenant or a tax certiorari proceeding filed by Tenant in respect of the condominium unit(s) comprising the Demised Premises which is unresolved on the Purchase Option Closing Date, such circumstances shall be governed by Section 5.1(c)(iv) hereof.

(iii)        Landlord shall not be required to join in any action or proceeding referred to in this Section 3.1(c) unless the provisions of any law, rule or regulation at the time in effect require that such action or proceeding be joined in by or brought by and/or in the name of Landlord. If so required, Landlord shall join and cooperate in such actions and proceedings or permit them to be brought by Tenant in Landlord’s name to the extent necessary to permit Tenant to effect such proceeding, in which case Tenant shall pay all reasonable costs and expenses incurred by Landlord in connection therewith. Such cooperation shall include, without limitation, the execution, acknowledgment and delivery of any documents or instruments reasonably required to prosecute, settle or compromise the action or proceeding in question, provided that Landlord shall not be obligated to incur any liability, cost or expense in connection therewith unless indemnified by Tenant therefor.

Section 3.2     Retail Space Percentage Rent.

(a)       Calculation of Percentage Rent. Tenant covenants and agrees to pay to Landlord, from and after the Lease Assignment Date and through the date that is one (1) day before the Scheduled PILOT Conversion Date (with respect to the PA Retail Space, in respect of any period for which the amount of PA Retail Space is equal to or greater than 5,000 square feet), Percentage Rent, determined in accordance with this Section 3.2(a). Percentage Rent for any Lease Year shall be the sum of:

34

(i)       Twenty percent (20%) of the amount, if any, by which the lesser of (A) Adjusted Gross Revenues for such Lease Year and (B) the product of (1) 0.15 and (2) the PA Budgeted Retail Construction Costs exceeds (C) the product of (1) 0.13 and (2) the PA Budgeted Retail Construction Costs; and

(ii)      Thirty percent (30%) of the amount, if any, by which (A) Adjusted Gross Revenues for such Lease Year exceeds (B) the product of (1) 0.15 and (2) the PA Budgeted Retail Construction Costs; and

(iii)     the sum of:

(A)            Twenty percent (20%) of the amount, if any, by which the lesser of (1) Roof Top Garden Adjusted Gross Revenues for such Lease Year and (2) the product of (x) 0.15 and (y) the Budgeted Roof Top Garden Construction Costs exceeds (3) the product of (x) 0.13 and (y) the Budgeted Roof Top Garden Construction Costs; and

(B)             Thirty percent (30%) of the amount, if any, by which (A) Roof Top Garden Adjusted Gross Revenues for such Lease Year exceeds (B) the product of (1) 0.15 and (2) the Budgeted Roof Top Garden Construction Costs; and

(iv)     the sum of:

(A)            Twenty percent (20%) of the amount, if any, by which the lesser of (1) Lobby Sublease Space Adjusted Gross Revenues for such Lease Year and (2) the product of (x) 0.15 and (y) the Budgeted Lobby Sublease Space Construction Costs exceeds (3) the product of (x) 0.13 and (y) the Budgeted Lobby Sublease Space Construction Costs; and

(B)             Thirty percent (30%) of the amount, if any, by which (A) Lobby Sublease Space Adjusted Gross Revenues for such Lease Year exceeds (B) the product of (1) 0.15 and (2) the Budgeted Lobby Sublease Space Construction Costs.

It is agreed that in making the calculation set forth in this Section 3.2(a), in respect of the Lease Year during which the Lease Assignment Date has occurred, the Adjusted Gross Revenues, the Roof Top Garden Adjusted Gross Revenues and/or the Lobby Sublease Space Adjusted Gross Revenues for such Lease Year shall be the Adjusted Gross Revenues, the Roof Top Garden Adjusted Gross Revenues and/or the Lobby Sublease Space Adjusted Gross Revenues for such entire Lease Year.

(b)        Percentage Rent Due Dates. Percentage Rent for each Lease Year, if any, shall be paid, in arrears, annually to Landlord no later than February 15 of each Lease Year after the Lease Assignment Date and shall be accompanied by a Percentage Rent Report.

(c)        Percentage Rent Report. Tenant shall deliver annually to Landlord, prior to February 15 of each subsequent Lease Year after the Lease Assignment Date, a report (the “Percentage Rent Report”) which shall be a Verified Statement and which shall set forth (i) in detail the amount of the Adjusted Gross Revenues, Roof Top Garden Adjusted Gross Revenues and Lobby Sublease Space Adjusted Gross Revenues for the applicable Lease Year on a monthly, quarterly and annual basis, (ii) in detail the sources from which the same were derived

35

and the deductions thereto and (iii) the calculation of Percentage Rent, if any, for the applicable Lease Year.

(d)        Independent Calculation. The calculation of the amount of Percentage Rent for any Lease Year shall be independent of the calculation for any other Lease Year. The acceptance of any Percentage Rent tendered by Tenant shall be without prejudice to Landlord’s right to any further sums subsequently shown to be due for the same period.

(e)        Accounting Principles. All rentals, sums or other consideration which are to be included in Adjusted Gross Revenues, Roof Top Garden Adjusted Gross Revenues and Lobby Sublease Space Adjusted Gross Revenues shall be included based upon Accounting Principles.

(f)         Subleasing to Related Entity. No subleasing by Tenant to a Related Entity shall affect, reduce or impair Tenant’s Obligations hereunder to pay Percentage Rent and to deliver any Percentage Rent Report as required hereunder and to make available books and records pursuant to Section 3.13 hereof. Tenant shall deliver to Landlord promptly upon the receipt or sending thereof copies of all notices, reports and communications between Tenant and any such Subtenant which relate to any financial or sales reports of such Subtenant with respect to the Demised Premises, any default by Tenant or such Subtenant under the applicable Sublease, or any other matter material to the financial or sales performance of either Tenant or such Subtenant under the applicable Sublease. Any failure by a Subtenant which is a Related Entity to provide to Tenant the information necessary for Tenant to prepare a Percentage Rent Report or to make available books and records for review pursuant to Section 3.13 hereof shall be deemed to be an Event of Default hereunder. Tenant shall provide in each Sublease with a Tenant Related Entity that each such Subtenant shall be subject to the provisions of this Section 3.2 with respect to the preparation and delivery of Percentage Rent Reports and the provisions of Section 3.13 hereof with respect to making available books and records. With respect to a Tenant Related Entity that is a Subtenant in possession and actual use of its Demised Space, nothing in the foregoing portions of this Section 3.2(f) shall affect the determination of the Adjusted Gross Revenues, Roof Top Garden Adjusted Gross Revenues and Lobby Sublease Space Adjusted Gross Revenues derived therefrom as provided in clause (A)(9) of the definition of Adjusted Gross Revenues, Roof Top Garden Adjusted Gross Revenues or Lobby Sublease Space Adjusted Gross Revenues,as applicable.

Section 3.3 Sales Tax Savings; PILOST.

(a)        [INTENTIONALLY OMITTED]

Section 3.4  Exemption from Mortgage Recording Tax; PILOMRT.

(a)        Exemption from Mortgage Recording Tax. Landlord shall cooperate with, and cause ESDC to make available to, Tenant an exemption in respect of Mortgage Recording Tax permitted by reason of the public ownership of the Property, the Demised Premises and the Common Elements and ESDC’s participation in the development of the Improvements. Landlord shall cooperate with Tenant in structuring Mortgages so as to take advantage of the exemption described in this Section 3.4(a), which cooperation shall include arranging for ESDC

36

or an affiliate thereof to act as the original mortgagee and/or holder thereof if required to enable Tenant to avail itself of the exemption from Mortgage Recording Tax provided for in this Lease.

(b)        Payment in Lieu of Mortgage Recording Tax. Prior to the recording of any Mortgage with the Office of the Register of the City, New York County, Tenant shall make a payment of PILOMRT to Landlord in an amount equal to, (i) to the extent a Mortgage is not an Exempted Mortgage, an amount equal to the Mortgage Recording Tax that would have been payable upon the recording of such Mortgage if not for the exemption provided under Section 3.4(a) hereof and (ii) to the extent the Mortgage is an Exempted Mortgage, the positive difference, if any, between (A) the product of (1) 0.625 and (2) the Mortgage Recording Tax Savings realized to date and (B) an amount equal to the Maximum MRT Savings Amount (as defined in the ▇▇▇ Project Agreement). Simultaneously with such payment, Tenant shall deliver to Landlord a certificate from a Qualified Certifying Officer of Tenant setting forth the maximum principal amount that may be advanced under such Mortgage to be recorded and Tenant’s calculation of the amount of the PILOMRT due in respect thereof. The amount of the PILOMRT shall be determined by using the Mortgage Recording Tax rates in effect at the time such Mortgage is recorded.

(c)        Notification of Tax Due. Tenant shall notify Landlord within seven (7) Business Days after receipt of notice by Tenant of a written determination by the appropriate taxing authority that any Mortgage Recording Tax is payable by Tenant with respect to any Mortgage that benefited from the exemption set forth in Section 3.4(a) hereof. Within twenty-three (23) Business Days after Tenant sends to Landlord a written notification that any determination by the appropriate taxing authority is final (a “Final MRT Notification”) and Tenant, in accordance therewith, has paid to such taxing authority an amount equal to the Mortgage Recording Tax demanded (together with evidence thereof), Landlord shall repay to Tenant the amount, if any, of such Mortgage Recording Tax (but no more than the amount, if any, of any PILOMRT that Tenant made to Landlord in respect of the recording of the applicable Mortgage), together with an amount equal to any interest or penalties imposed on Tenant by the applicable taxing authority for Tenant’s non-payment, which payment shall be made by Landlord prior to the date which is twenty-three (23) Business Days after the Final MRT Notification. If Landlord fails to so reimburse Tenant for the Mortgage Recording Tax within the foregoing period, Tenant shall have the right to offset the amount of such Mortgage Recording Tax together with interest at the Interest Rate from the date Tenant made such Mortgage Recording Tax against the next installments of Charges coming due pursuant to this Lease. If as a result of the expiration or termination of this Lease other than by reason of Tenant’s default Tenant is unable to recoup the entire Mortgage Recording Tax with interest as aforesaid by offsetting the same against Charges, Landlord shall reimburse Tenant for any such amount not so recouped less any amounts due and owing from Tenant to Landlord hereunder within twenty-three (23) Business Days of the expiration or termination of this Lease. Neither Landlord nor Tenant shall be obligated to contest the decision of any such authority to deny, revoke or terminate any exemptions or other relief from the payment of such taxes. However, should either party desire to contest any such decision by bringing a lawsuit or otherwise, it may do so at its own risk and expense, and Landlord shall have the right to bring such lawsuit in the name of Tenant if Tenant fails to do so within twenty-three (23) Business Days following written request by Landlord. In the event that the contest of such decision is successful and Landlord has paid the amount of the Mortgage Recording Tax to Tenant, then Tenant shall, within twenty-three (23) Business Days

37

after written demand by Landlord, reimburse Landlord in an amount equal to the applicable Mortgage Recording Tax.

Section 3.5 Theater Surcharge.

(a)        Calculation of Theater Surcharge. Tenant covenants and agrees to pay to Landlord, for the benefit of the rehabilitation, maintenance, management and promotion of the historic theaters within the ▇▇▇▇ ▇▇▇▇▇▇ Project Area (which payment shall be forwarded by Landlord to a Theater Management Entity) an amount equal to $0.15 per Occupied Square Foot per annum (the “Theater Surcharge”); provided, however, that the Theater Surcharge shall be Adjusted for Inflation from January 1, 2000.

(b)        Triggering of Theater Surcharge Obligation. The Theater Surcharge obligation in respect to any given Occupied Square Foot shall commence, in respect of each such Occupied Square Foot, upon the earlier to occur of (1) the commencement of the term of the Sublease demising such Occupied Square Foot, if any, and (2) actual occupancy of such Occupied Square Foot for the conduct of business (such earlier date, the “Theater Surcharge Commencement Date”). The obligation to pay the Theater Surcharge in respect of a given Occupied Square Foot shall continue until the earliest of (i) the expiration of the applicable Sublease, if any (it being understood that the obligations to make payments on account of the Theater Surcharge shall recommence when the requirements of clause (1) and (2) above are again satisfied), (ii) the first date on which no entity exists to exercise the functions of a Theater Management Entity and (iii) the ninety-ninth (99th) anniversary of the Delivery Date.

(c)        Theater Surcharge Due Dates. The aggregate Theater Surcharge for each Lease Year in respect to a given Occupied Square Foot shall be paid, in advance, annually to Landlord (together with the PILOT payment due pursuant to Section 3.1(c) hereof) on or prior to January 1 of such Lease Year and shall be accompanied by a Theater Surcharge Report (it being agreed that the Theater Surcharge in respect of any Occupied Square Foot for which Theater Surcharge Commencement Date occurs after January 1 shall be paid, pro rata, on the basis of the actual number of days in such Lease Year after such Theater Surcharge Commencement Date, within twenty (20) Business Days after the applicable Theater Surcharge Commencement Date). If a Sublease for any Occupied Square Feet shall terminate on any date which is prior to December 31 of any Lease Year, the Theater Surcharge for such period shall be prorated accordingly (and, in respect of a Sublease that is terminated unexpectedly before December 31 of any applicable Lease Year, any Theater Surcharge paid in respect of the period after such unexpected termination will be deemed a credit against the payment of Theater Surcharge next due).

(d)        Theater Surcharge Report. Tenant shall deliver to Landlord, along with the annual Theater Surcharge payment, a report (the “Theater Surcharge Report”) which shall be a Verified Statement and which shall set forth, together with support adequate to permit Landlord to undertake an informed review in respect thereof, (i) in detail, the number of Occupied Square Feet in the Demised Premises that form the basis of the Theater Surcharge calculation, (ii) the applicable Theater Surcharge Commencement Dates related to each Occupied Square Foot listed in clause (i) above, (iii) the applicable Theater Surcharge factor

38

(i.e., $0.15 in the year 2000) as Adjusted for Inflation, and (iv) the calculation of Theater Surcharge for the applicable Lease Year.

(e)        Independent Calculation. The calculation of the amount of Theater Surcharge for any Lease Year shall be independent of the calculation for any other Lease Year. The acceptance of any Theater Surcharge payment tendered by Tenant shall be without prejudice to Landlord’s right to any further sums subsequently shown to be due for the same period.

(f)         Subleasing to Related Entity. No subleasing by Tenant for the actual occupancy of the demised space to a Tenant Related Entity shall affect, reduce or impair Tenant’s Obligations hereunder to pay Theater Surcharge (or the amount thereof) and to deliver a Theater Surcharge Report as required hereunder.

Section 3.6  Administrative Fee. Tenant covenants and agrees to pay Landlord, from and after the Commencement Date, in annual payments in advance on January 10 of each year, FIFTEEN THOUSAND DOLLARS ($15,000) per annum (the “Administrative Fee”). On every fifth (5th) anniversary of the Delivery Date, the Administrative Fee shall be Adjusted for Inflation in respect of the next succeeding five-year period.

Section 3.7  Prorations; Overdue Amounts.

(a)        365/366-Day Year. All prorations under this Article III shall be calculated on the basis of a the actual number of days elapsed in a 365-day year (or 366-day year, if applicable).

(b)        Prorations. Except as otherwise provided in Section 3.7(c) hereof, if the Expiration Date is other than the last day of a calendar month, the installment of Charges for the period in which the Expiration Date occurs shall be prorated on the basis of the number of days occurring within the period commencing on the first day of the calendar month in which the Expiration Date occurs and ending on the Expiration Date.

(c)        Overdue Amounts. Additional Charges shall be payable by Tenant to Landlord in respect of any amounts payable hereunder to Landlord (including, without limitation, sums advanced by Landlord hereunder to cure a default by Tenant in the performance of Tenant’s Obligations) which shall not have been paid on the date the same shall be due and payable (an “Overdue Payment”) together with interest as follows: (A) with respect to any overdue PILOT, the overdue amount shall bear interest at the rate then generally charged by the City with respect to overdue Full Taxes, and shall be subject to the same fines and penalties as are assessed by the City with respect to overdue Full Taxes; provided, however, the imposition or assessment of interest, fines and penalties for overdue PILOT shall be subject to the notice and grace periods identical to the notice and grace periods, if any, from time to time granted by the City with respect to the payment of Full Taxes in respect of comparable properties and amounts; and (B) with respect to any other overdue Charges (other than Charges incurred pursuant to Section 14.1(b) hereof), the overdue amount shall bear interest calculated at the Interest Rate. Such aforesaid charges shall be due and payable within twenty (20) Business Days after demand for payment therefor by Landlord. No failure by Landlord to insist upon the strict performance by Tenant of Tenant’s Obligations to pay such Overdue Payment or interest shall

39

constitute a waiver by Landlord of its right to enforce the provisions of this Section 3.7 in any instance thereafter occurring. The provisions of this Section 3.7 shall not be construed in any way to extend the grace periods or notice periods with respect to the payment of Charges as provided in Section 14.2(a) hereof.

Section 3.8  No Joint Venture. The fixing of a portion of the Charges to be paid by Tenant with reference to a percentage of Adjusted Gross Revenues, the Roof Top Garden Adjusted Gross Revenues or Lobby Sublease Space Adjusted Gross Revenues shall not cause either party hereto to be deemed to be a partner or an associate in business with, or responsible in any way for the business of, the other party hereto. Landlord, in its capacity as landlord hereunder, and Tenant further agree that they are not partners or joint venturers and that they do not stand in any fiduciary relationship one to the other.

Section 3.9  All Charges Treated as Rent. All PILOT, PILOMRT, Percentage Rent, Theater Surcharge, Overdue Payments, and other charges, fees and other amounts payable by Tenant under this Lease shall constitute Charges and, in the event of the non-payment by Tenant of any of the same when due according to the provisions of this Lease, Landlord shall have the same rights and remedies in respect thereof as would be available to Landlord if Charges were rent. It is expressly agreed by the parties hereto that no fixed rent is payable under this Lease. Moreover, no charges or other amounts are payable pursuant to this Article III for any period prior to the Lease Assignment Date.

Section 3.10  Payments. All payments of Charges and other sums required to be paid hereunder to Landlord shall be in lawful money of the United States of America and shall be paid to the Collection Agent at the address designated therefor, or to such other person and/or at such other place as Landlord and the City may jointly designate from time to time in writing.

Section 3.11  Net Lease. This Lease shall be deemed and construed to be a “triple net lease”, and Tenant shall pay to Landlord, absolutely net throughout the term of this Lease, all Charges and other sums payable hereunder, free of any charges, assessments, Impositions or deductions of any kind and without abatement, deferment, reduction, defense, counterclaim, demand, notice, deduction or set-off of any kind, and under no circumstances or conditions, whether now existing or hereafter arising, or whether beyond the present contemplation of the parties, shall Landlord be expected or required to make any payment of any kind whatsoever or be under any other obligation or liability hereunder, except as otherwise expressly set forth herein. All costs, expenses, charges, Impositions and other payments of every kind and nature whatsoever relating to the Demised Premises and the Common Elements, or the use, operation or maintenance thereof, which may arise or become due during or in respect of the term of this Lease after the Lease Assignment Date shall be paid by Tenant, and Tenant assumes full responsibility for the condition, operation, repair, alteration, improvement, replacement, maintenance and management of the Demised Elements and the Common Elements (which obligations, in the case of Tenant’s Subway Improvements, shall be governed by the Site 8 South Subway Agreement). Under no circumstances or conditions, whether now existing or hereafter arising, or whether beyond the present contemplation of the parties, shall Landlord be expected or required to make any payment of any kind whatsoever or be under any other obligation or liability hereunder except as herein otherwise expressly set forth.

40

Section 3.12  No Offset. Except as expressly provided for herein (including, without limitation, in Section 5.1(c)(iv) hereof), no happening, event, occurrence or situation during the term of this Lease, whether foreseen or unforeseen, and however extraordinary, shall permit Tenant to quit the Demised Premises or surrender this Lease or shall relieve Tenant from Tenant’s Obligations, or shall affect this Lease in any way, it being the intention that the Obligations of Landlord and Tenant hereunder shall be separate and independent covenants and agreements and that the Charges shall continue to be payable in all events unless the Obligations to pay the same shall be terminated pursuant to the express provisions of this Lease. Tenant covenants and agrees that it will remain obligated under this Lease in accordance with its terms.

Section 3.13  Books and Records.

(a)        Right to Audit. Tenant shall keep, or cause to be kept, true and complete books of record and accounts in respect of matters that are required by this Lease to be reported by Tenant to Landlord or that are monetary obligations governed by or relating to this Lease and Tenant Obligations hereunder, including monthly records of Adjusted Gross Revenues, Roof Top Garden Adjusted Gross Revenues and Lobby Sublease Space Adjusted Gross Revenues and records and calculations in respect of Theater Surcharge. Tenant shall require, pursuant to the applicable Sublease, each Subtenant of PA Retail Space that is required pursuant to the terms of its Sublease to pay percentage rent to Tenant, to keep true and complete books of record and accounts in respect of such Subtenant’s business that are relevant to such percentage rent payment, in all cases in accordance with Accounting Principles, or if Accounting Principles are inapplicable to any expenditures, in accordance with sound accounting principles consistently applied. Such records shall be located or made available in New York City and shall be maintained as aforesaid for a period of not less than six (6) years after the end of the applicable Lease Year to which such records relate. Landlord and Landlord’s accountants and other representatives and the Comptroller of the City (the “Comptroller”) shall have the right from time to time to conduct a review of Tenant’s books of record and accounts relating to the relevant matters governed by or relating to this Lease and Tenant Obligations hereunder (including Adjusted Gross Revenues, Roof Top Garden Adjusted Gross Revenues and Lobby Sublease Space Adjusted Gross Revenues) and Tenant shall cooperate with the performance of such review. Each Sublease shall provide that Landlord and Landlord’s accountants and other representatives and the Comptroller shall have the right from time to time to conduct a review of such Subtenant’s books of record and accounts relating to Percentage Rent payments, and shall require such Subtenant to cooperate with the performance of such review. All such reviews shall occur during regular business hours and upon not less than three (3) days’ prior written notice. The cost of such review shall be borne solely by Landlord, except that if the results of such review determine that Tenant (or any such Subtenant, as applicable), whether or not inadvertently, has understated the Percentage Rent, payable to Landlord (or percentage rent payments payable to Tenant, as applicable) by more than five percent (5%) of what is owed, then Tenant (or such Subtenant in the case of such percentage rent payments) shall pay or shall reimburse Landlord on demand for payment of the reasonable costs and expenses involved in such review.

(b)        Incorrect Payments of Charges. Should any audit performed by Landlord, Landlord’s agent or designee disclose that Adjusted Gross Revenues, Roof Top Garden Adjusted Gross Revenues, or Lobby Sublease Space Adjusted Gross Revenues were understated or that

41

Tenant otherwise provided information that led to an underpayment of (or on account of) Charges, then any underpayments shall be paid to Landlord (i) within five (5) days after Tenant has received notice of such underpayment from Landlord, but such payment shall be without prejudice to Tenant’s right to dispute any such notice of underpayment or (ii) at Tenant’s option, within five (5) days after resolution of any dispute as to any such underpayment. Any underpayment under this Section 3.13(b) shall bear interest at the Interest Rate from the date on which the payment first should have been made to the date such underpayment is paid. Any overpayment of Charges, after the resolution of any dispute with respect thereto (together with interest at the Interest Rate from the date of overpayment to the date such overpayment is credited or refunded), shall be credited against the next installment(s) of Charges, provided that any amount unrecovered at the Expiration Date shall be paid by Landlord to Tenant or if Tenant exercises its option under Article V hereof of this Lease, shall be allowed as a credit against the Purchase Price. If the sum of such credit and any other credits against the Purchase Price exceeds the Purchase Price, then Landlord shall pay Tenant on the Purchase Option Closing Date the amount by which the aggregate of all credits against the Purchase Price exceeds the Purchase Price. Any dispute as to any payment of charges or the calculation thereof shall be resolved pursuant to arbitration as provided in Section 16.2 hereof.

(c)        Right to Prepare Statements. If Tenant shall fail to deliver to Landlord any report or Verified Statement required by this Article III on or prior to the due date thereof, in addition to any other rights or remedies Landlord may have under this Lease and without thereby waiving such default by Tenant, Landlord shall be entitled, after fifteen (15) Business Days’ prior notice to Tenant if Tenant shall have not cured such default within such period, at Tenant’s expense, to have such report or Verified Statement prepared by a certified public accountant selected by Landlord. Landlord and such certified public accountant shall have the right to review Tenant’s relevant books and records with respect to the Property relating to the relevant overdue report or Verified Statement on demand and to make such copies thereof as either shall reasonably require. All fees and expenses incurred in the preparation of any such overdue Verified Statement or report shall be payable by Tenant on demand as additional Charges hereunder.

(d)        Copies of Reports. Tenant shall deliver to Landlord (i) promptly upon the receipt or sending thereof copies of notices of default given or received by Tenant with respect to any Sublease of any portion of the PA Retail Space and (ii) upon request by Landlord, copies of reports received or given by Tenant from or to any Subtenant which relate to (1) any financial or sales reports of such Subtenant or (2) to any other components of Adjusted Gross Revenues, Roof Top Garden Adjusted Gross Revenues or Lobby Sublease Space Adjusted Gross Revenues.

(e)        Landlord and Tenant Contests. Any statement prepared by or on behalf of Landlord pursuant to Section 3.13(c) hereof or the results of any audit conducted by or on behalf of Landlord pursuant to Section 3.13(a) hereof shall be conclusive and binding upon Tenant unless Tenant notifies Landlord within one hundred eighty (180) days after receipt thereof that it disputes the correctness of such statement or results, which notice shall specify the particular respects in which the same is claimed to be incorrect, and Tenant pays the amount in dispute in accordance with such statement or results, without prejudice to Tenant’s position. If Landlord and Tenant are unable to resolve such dispute within twenty (20) Business Days after receipt of

42

Tenant’s notice, the dispute shall be submitted to arbitration for resolution pursuant to Section 16.2 hereof.

Section 3.14  Illegality. If any Charges shall be or become uncollectible, reduced or required to be refunded because of any rent control or similar act or law enacted by a Governmental Authority, Tenant shall enter into such agreement(s) and take such other steps as Landlord may reasonably request and as may be legally permissible to permit Landlord to collect the maximum amounts which from time to time during the continuance of such rent controls may be legally permissible (and not in excess of the amounts reserved therefor under this Lease). Upon the termination of such rent controls or similar act or law, (a) the Charges in question shall become and thereafter be payable in accordance with the amounts reserved herein for the periods following such termination, and (b) Tenant shall pay to Landlord, up to the maximum extent legally permissible, an amount equal to (i) the amount of any Charges in question which would have been paid pursuant to this Lease but for such rent controls minus (ii) the amounts with respect to any such Charges paid by Tenant during the period such rent controls were in effect.

Section 3.15  Administrative Code Section 11-208.1. For as long as 42DP or the City is Landlord and to the extent that the Administrative Code of The City of New York Section 11-208.1 (or successor thereto) is then in force and effect, Tenant shall submit income and expense statements of the type required by such code section (or successor thereto) as if Tenant were the “owner” of the Leased Unit as such terms are used in said Section 11-208.1, such statements to be submitted within the time periods and to the address provided for in said Section 11-208.1, and shall submit the same notwithstanding that 42DP or the City holds fee title to the Property, that the Property may therefore not be “income-producing property” as that concept is used in Section 11-208.01, or that PILOT rather than real estate taxes are being paid with respect to the Property.

Section 3.16  Survival. Tenant’s and Landlord’s Obligations and rights under this Article III in respect of Charges that shall have accrued prior to the expiration or earlier termination of this Lease, including Tenant’s Obligations to maintain and make available books and records with respect thereto, shall survive the expiration or earlier termination of this Lease.

Section 3.17  Existing Violations. From and after the Lease Assignment Date, Landlord shall pay or otherwise remove all fines, penalties and other monetary charges imposed by reason of the Existing Violations (it being acknowledged that, prior to the Lease Assignment Date, 42DP is obligated to perform the foregoing obligations pursuant to the Initial Ground Lease).

Section 3.18  End of NYTC Benefits. In the event that NYTC or a Related Entity of NYTC no longer is the owner of an interest in Tenant, then all rights and benefits accruing specifically to NYTC under this Article III shall be deemed null and void and of no further force and effect as of the date of such Transfer.

43

ARTICLE IV
IMPOSITIONS

Section 4.1  Impositions.

(a)        Payment. Subject to Section 4.1(b) and 4.1(c) hereof, Tenant shall pay or shall cause to be paid, as and when the same become due, all Impositions under this Lease attributable to the period from and after the first day of the applicable fiscal year after the Lease Assignment Date.

(b)        Apportionments. All Impositions for the fiscal year or tax year in which the first day of the applicable fiscal year after the Lease Assignment Date occurs or the term of this Lease expires shall be apportioned; provided, however, that if there shall be a Default or Event of Default hereunder, Tenant shall not be entitled to receive any credit due to Tenant on account of any such apportionment until such Default or Event of Default has been cured.

(c)        Installments. Where any Imposition is permitted by Legal Requirements to be paid in installments, Tenant may pay such Imposition in installments as and when each such installment becomes due.

Section 4.2  Payment.

(a)        Obligation to Pay. Tenant shall pay all Impositions directly to the appropriate Governmental Authority or other Person entitled to receive the same and shall pay such Impositions before any fine, penalty, interest or other cost shall become due or be imposed by operation of law.

(b)        Evidence of Payment. At Landlord’s request, Tenant shall furnish Landlord, within twenty-five (25) Business Days after the date when an Imposition is required to be paid hereunder, (i) a copy of any ▇▇▇▇ received by Tenant relating to such Imposition and (ii) copies of cancelled checks or official receipts of the appropriate taxing authority or other proof reasonably satisfactory to Landlord evidencing the payment thereof.

Section 4.3  Right to Contest. (a)  Tenant may, if it shall so desire, protest or contest the validity or amount of any Imposition, in whole or in part, without paying at the time of such protest or contest such Imposition; provided, however, that if Tenant has not elected to pay such Imposition:

(i)          the same is done by Tenant upon prior written notice to Landlord, at Tenant’s sole cost and expense and with due diligence and continuity so as to resolve such protest or contest promptly;

(ii)         neither the Demised Premises nor the Common Elements, nor any part thereof is or will be in imminent danger of being forfeited or lost by reason of such protest or contest;

44

(iii)        Tenant shall either bond such Imposition or deposit with Landlord, or provide Landlord with, security in an amount and in form and substance reasonably satisfactory to Landlord (it being agreed that an acceptable guaranty of an Acceptable Guarantor shall be security reasonably satisfactory to Landlord under this Section 4.3(a)(iii)) for application toward the cost of curing or removing the same from record and to secure Landlord against any loss or damage arising out of such protest or contest or the deferral of Tenant’s performance or compliance;

(iv)       if an in rem action with respect to the non-payment of such Imposition has been commenced or any writ or order is issued under which the Demised Premises and/or the Common Elements, or any part thereof, may be sold or forfeited, Tenant shall thereafter diligently proceed to cure or remove the same from record or take such other actions in lieu thereof as are legally permissible to toll or enjoin any such action, sale or forfeiture;

(v)        such protest or contest shall not subject Landlord to prosecution for a criminal offense or a claim for civil liability (it being agreed that assessment of the Imposition, together with interest and penalties thereon, shall not be deemed civil liability for the purpose of this clause);

(vi)       Tenant agrees in writing to indemnify Landlord from and against any and all Claims upon or arising out of such protest or contest; and

(vii)      no Event of Default shall have occurred and be continuing.

(b)        If Tenant receives any notice that Tenant or the Demised Premises and/or the Common Elements, or any part thereof, is in default under or is not in compliance with any of the foregoing Sections 4.3(a)(i) through 4.3(a)(vii) hereof, or notice of any proceeding initiated under or with respect to any of the foregoing Sections 4.3(a)(i) through 4.3(a)(vii) hereof, Tenant will promptly furnish a copy of such notice to Landlord. Nothing herein contained, however, shall be so construed as to allow such Imposition to remain unpaid for such length of time as shall permit the Demised Premises and/or the Common Elements, or any part thereof, to be sold by any Governmental Authority for the non-payment of the same, and, if at any time in the judgment of Landlord, reasonably exercised, it shall become necessary or proper to do so, Landlord, after not less than twenty (20) Business Days’ written notice to Tenant (unless such sale is scheduled prior to the expiration of any shorter period), may pay or apply the moneys deposited in accordance with this Section 4.3 or so much thereof as may be required to the payment of the challenged Imposition to prevent the sale of the Demised Premises and/or the Common Elements or any part thereof. If the amount so deposited as aforesaid shall exceed the amount required to satisfy the challenged Imposition as finally fixed and determined, the excess (or the entire amount if no such payment is required) shall be paid to Tenant, or in case there shall be any deficiency, the amount of such deficiency shall be forthwith paid by Tenant. Promptly following resolution of the contest and payment by Tenant of any amounts due, Landlord shall refund to Tenant any monies so deposited and not applied to payment of the Imposition. Any moneys so deposited shall be held in an interest-bearing account at a Lending Institution, and any interest earned thereon, shall be refunded, applied or paid in the same

45

manner as the amount deposited is refunded, applied or paid in accordance with the immediately preceding two (2) sentences.

(c)        Landlord shall not be required to join in any action or proceeding referred to in this Section 4.3 unless required by any Legal Requirement in order to make such action or proceeding effective, in which event any such action or proceeding may be pursued by Tenant (upon prior written notice to Landlord) in the name of, but without expense to, Landlord. Tenant hereby agrees to indemnify Landlord from and against any and all Claims incurred or suffered by Landlord in its proprietary capacity and arising out of any such action or proceeding. The provisions of this Section 4.3(c) shall survive the expiration or earlier termination of this Lease.

46

ARTICLE V
PURCHASE OPTION

Section 5.1  Purchase Option.

(a)        Tenant’s Exercise of Purchase Option. After the Scheduled PILOT Conversion Date or as otherwise expressly permitted under this Lease, Tenant, simultaneously with the tenants under all other Severance Subleases, shall have the right, which right shall be exercised by notice to Landlord (the “Purchase Option Notice”), to purchase (or have a designee purchase) all of the interest of 42DP (if any) and the City in the portion of the Land and the Improvements comprising the Demised Premises, and the undivided interest in the Common Elements associated therewith (the “Purchase Option”) on a date identified in the Purchase Option Notice and being no less than ninety (90) days after the date of the Purchase Option Notice (such date, the “Purchase Option Closing Date”) and on the terms and conditions set forth in this Article V. The Purchase Option Notice may be delivered prior to the Scheduled PILOT Conversion Date so long as the Purchase Option Closing Date set forth therein occurs on or subsequent to the Scheduled PILOT Conversion Date. In the event that the right of any tenant under a Severance Sublease to exercise the purchase option provided under such Severance Sublease is accelerated pursuant to Section 11.1(g) of such Severance Sublease, Tenant’s right to exercise the Purchase Option hereunder shall automatically be so accelerated.

(b)        Purchase Option Closing Date. The closing of Tenant’s purchase pursuant to the Purchase Option shall take place on the Purchase Option Closing Date. Tenant may adjourn the Purchase Option Closing Date, on up to two (2) occasions, so long as Tenant notifies Landlord of each such adjournment at least five (5) Business Days prior to any applicable scheduled Purchase Option Closing Date; provided, however, that Tenant may adjourn the Purchase Option Closing Date on additional occasions so long as Tenant pays all of Landlord’s costs incurred on account of such adjournment.

(c)        Conditions to Closing. Closing of the transfer of fee title to the portion of the Land and the Improvements comprising the Demised Premises, and the undivided interest in the Common Elements associated therewith, pursuant to the Purchase Option shall be conditioned on the following:

(i)          The Purchase Price shall be paid to Landlord on the Purchase Option Closing Date.

(ii)         Appropriate adjustments of all Charges, apportioned as of the Purchase Option Closing Date, shall be made between Tenant and Landlord on the Purchase Option Closing Date.

(iii)        If, on the Purchase Option Closing Date, there shall be any dispute between Landlord and Tenant as to any Charges then due and payable, the closing shall proceed as scheduled and Tenant shall (A) pay to Landlord, on the Purchase Option Closing Date, the undisputed portion of the balance of the Charges apportioned as of the Purchase Option Closing Date and (B) deposit with the Depositary cash or cash-equivalents (e.g., an unconditional,

47

irrevocable letter of credit, U.S. Government Securities in bearer form and/or certificates of deposit issued by Lending Institutions in bearer form) in an amount equal to, and as security for, the disputed Charges (together with an amount equal to the reasonably estimated interest at the Interest Rate to accrue thereon for a two-year period); provided, however, if the amount in dispute is equal to or less than $50,000, Landlord will accept a guaranty of NYTC for the total amount in dispute to be adequate security for the purposes of clause (B) above. At such time as the dispute is resolved, the additional amount, if any, still owing shall be paid to Landlord (with interest at the Interest Rate). Upon such payment, any excess security (and any interest earned thereon) shall be refunded or returned to Tenant. Tenant’s and Landlord’s obligations to make any payment pursuant to this Section 5.1(c)(iii) with respect to Charges shall survive the termination of this Lease.

(iv)       If, on the Purchase Option Closing Date, there shall be an unresolved tax contest initiated by Tenant pursuant to Section 3.1(c) hereof in respect of the Demised Premises and its undivided interest in the Common Elements, Tenant shall nevertheless pay the full amount of PILOT then due on the Purchase Option Closing Date for the applicable period. Landlord will deposit any disputed portion of such PILOT with the Depositary, as escrowee for such funds pursuant to an escrow agreement entered into by Landlord, Tenant and Depositary on the Purchase Option Closing Date. It is agreed that such escrowed funds shall be distributed in accordance with the results of the tax contest. Upon receiving joint instructions from Landlord and Tenant as to the disposition of such escrowed funds pursuant to the preceding sentence, Landlord and Tenant shall instruct Depositary to immediately so disburse the escrowed funds.

(v)        Landlord shall not be obligated to convey any portion of the Property to Tenant or to any other tenant under a Severance Sublease, until Tenant or another tenant under a Severance Sublease, in addition to all other sums due on the Purchase Option Closing Date, pays to Landlord in full all Charges due and not disputed pursuant to Sections 5.1(c)(iii) and 5.1(c)(iv) hereof as of the Purchase Option Closing Date.

(vi)       Tenant shall provide to Landlord (A) a certificate of Tenant, which shall be certified by a Qualified Certifying Party, stating that, as of the Purchase Option Closing Date, Tenant is fully familiar with the Demised Premises and the Common Elements, the condition thereof and the Permitted Encumbrances, and Tenant accepts title to same in their “AS IS” condition without any representation or warranty, express or implied, in fact or by law, of Landlord, NYCEDC, ESDC or the City as to the title thereto, the nature, condition or viability thereof, or the use or uses to which the Demised Premises and the Common Elements or any part thereof may be put, (B) an agreement, in a form reasonably satisfactory to Landlord, providing for the survival of any of Tenant’s Obligations expressly stated herein to survive this Lease and (C) all other documentation customarily entered into in the connection with the full and complete transfer of interest in property in New York City.

(vii)      Landlord shall not be obligated to convey any portion of the Property to Tenant unless, on the Purchase Option Closing Date, Landlord is obligated to convey its interest in the balance of the Property under all of the other Severance Subleases. It is expressly agreed that a default by Landlord in its obligations relating to the conveyance of title to any portion of the Property pursuant to the exercise of the Purchase Option under any Severance

48

Sublease shall be deemed a default by Landlord with respect to such obligations under all of the Severance Subleases.

(d)        Condition of Title. On the Purchase Option Closing Date, fee simple title in and to the applicable portion of the Land and the Improvements comprising the Demised Premises (under each Severance Sublease), and the undivided interest in the Common Elements associated therewith shall be conveyed to each applicable tenant under the Severance Subleases, or the designee(s) of such tenant (collectively, “Purchaser”), in either case subject only to the Ground Lease, any Subleases, the Severance Subleases, the Permitted Encumbrances, and all matters and encumbrances affecting title to which this Lease is subject resulting from a Person claiming by, through or under such tenant under the Severance Sublease.

(e)        Deed. On the Purchase Option Closing Date, 42DP and/or the City, as applicable, shall deliver to the Purchaser (i) bargain and sale deeds without covenant against grantor’s acts, in proper statutory short form for recording, duly executed and acknowledged, in order to convey the title to each portion of the Land and the Improvements comprising the Demised Premises (under each Severance Sublease), and the undivided interest in the Common Elements associated therewith in accordance with the provisions of Section 5.1(d) hereof, (ii) an executed counterpart of an agreement the sole purpose of which is the termination of the Ground Lease, and (iii) such other reasonable and customary documents that a reputable title insurance company licensed to do business in the State of New York may request in order to convey title in the condition provided for in Section 5.1(d) hereof.

(f)         Tax Returns. On the Purchase Option Closing Date, each of the parties shall duly execute and, if applicable, acknowledge any and all transfer tax returns required in connection with the delivery and/or recording of the deed or deeds described in Section 5.1(e) hereof which shall reflect the Purchase Price. All taxes imposed pursuant to such returns, whether payable by Landlord and/or the Purchaser under applicable law, shall be paid by the Purchaser, who shall also pay the documentary stamps, if any, to be affixed to the deed or deeds. The tax returns and the amount of such taxes and documentary stamps shall be delivered to the purchaser’s title insurer on the Purchase Option Closing Date for delivery to the appropriate Governmental Authorities (or delivered directly to a reputable title insurance company for delivery to the appropriate Governmental Authorities in the event that the Purchaser does not have a title insurer).

(g)        Tenant’s Liabilities. If, after giving the Purchase Option Notice, the Purchaser, whether by reason of its acts or omissions or the acts or omissions of any other tenant under a Severance Sublease, fails to purchase the portion of the Land and the Improvements comprising the Demised Premises (under each Severance Sublease), and the undivided interest in the Common Elements associated therewith, Tenant shall reimburse (or cause the Purchaser to reimburse) the Public Parties, within seven (7) Business Days of a request therefor, for all expenses incurred by the Public Parties in connection with, and in contemplation of, the failed exercise of the Purchase Option.

Section 5.2  Casualty to, or Condemnation of, the Property. If all or any portion of the Improvements are damaged or destroyed by Casualty, or if condemnation

49

proceedings referred to in the provisions of Section 12.1 hereof are instituted, and if Tenant theretofor has exercised the Purchase Option in accordance with the provisions of this Lease:

(a)        Landlord shall assign to the Purchaser, on the Purchase Option Closing Date, all of Landlord’s interest in and to so much of the insurance proceeds or condemnation award, as the case may be, as has not been paid to Depositary; and

(b)        Depositary shall pay on the Purchase Option Closing Date the Restoration Funds (i) first, to itself and Landlord, to the extent, if any, of the necessary and proper expenses (including, without limitation, reasonable attorneys’ fees and disbursements) incurred by Depositary and Landlord in the collection of such Restoration Funds as of the Purchase Option Closing Date, and (ii) the balance to the Purchaser. Landlord shall recognize any assignment to a Recognized Mortgagee of the balance of such Restoration Funds.

Section 5.3  Termination of Right to Purchase. If condemnation proceedings referred to in Section 12.1(a) hereof commence after the Purchase Option Notice is given and before the Purchase Option Closing Date, Tenant may either (a) withdraw such notice, in which event the parties shall have no further rights or obligations under this Article V, or (b) proceed with such purchase without abatement of the Purchase Price on account of such condemnation proceeding, in which event (i) such proceedings shall not be an objection to title and (ii) if the title to the Property and the applicable leasehold estates shall have vested in the condemnor prior to the Purchase Option Closing Date, Landlord shall not be required to deliver a deed (except as to any portion of the Property not taken in such condemnation), but only an assignment on the Purchase Option Closing Date of the award in such proceeding, in form and substance reasonably satisfactory to Tenant.

50

ARTICLE VI
CONSTRUCTION OF THE PROJECT

Section 6.1 Construction of the Project. [INTENTIONALLY OMITTED]

Section 6.2 Plans and Specifications. [INTENTIONALLY OMITTED]

Section 6.3 Performance of Construction Work. [INTENTIONALLY OMITTED]

Section 6.4 Use of Plans and Specifications. [INTENTIONALLY OMITTED]

Section 6.5 Conditions Precedent to Commencement of Demolition, Asbestos Removal and Lead Abatement. [INTENTIONALLY OMITTED]

Section 6.6 Construction of Tenant’s Subway Improvements. [INTENTIONALLY OMITTED]

Section 6.7 Permanent Certificate of Occupancy. [INTENTIONALLY OMITTED]

Section 6.8 Construction Agreements. [INTENTIONALLY OMITTED]

Section 6.9 Construction Sign. [INTENTIONALLY OMITTED]

Section 6.10 Project Area. [INTENTIONALLY OMITTED]

Section 6.11 Title to Materials. [INTENTIONALLY OMITTED]

Section 6.12 Nonadverse Structural Effect. [INTENTIONALLY OMITTED]

Section 6.13 Arbitration. [INTENTIONALLY OMITTED]

51

ARTICLE VII
USE AND MAINTENANCE OF THE PROPERTY

Section 7.1 Permitted Use.

(a)        Use. The Demised Premises and the Common Elements shall be used, maintained, occupied and operated (i) in accordance with the requirements of the DUO, (ii) at a standard of at least that of a Class “A” office building (as understood on the date hereof) in midtown Manhattan, and (iii) subject to the DUO and except as hereinafter set forth, for any use permitted by Legal Requirements, including, without limitation, offices, newsrooms, retail, service, auditoriums, dining facilities, communications facilities, production facilities, ancillary medical facilities, parking for not more than ten (10) cars, back office, storage and other uses as are incidental or ancillary thereto, in accordance with the certificate(s) of occupancy therefor, and for no use or purpose inconsistent with the DUO or the operation of a Class “A” office building (as understood on the date hereof) in midtown Manhattan (the uses described in clauses (i), (ii) and (iii) above, the “Permitted Use”), and for no other use. Tenant agrees not to use, permit or suffer the Demised Premises or the Common Elements to be used for any purposes not expressly permitted under this Section 7.1(a) without the prior written consent of Landlord.

(b)        Display and Signage. All signage to be incorporated into the design of the Demised Premises and the Common Elements, and all lighting to be installed in connection therewith shall comply with the specific requirements of the DUO; provided, however, that Tenant shall not be responsible for signage and lighting relating to any Retail Space other than any Retail Space associated with the Public Amenity. Tenant shall install and operate, or cause to be installed and operated, lights and signs as required by the DUO by the date(s) prescribed in the DUO applicable to each category of lighting and signage set forth in the DUO.

(c)        Common Elements. Subject to the immediately following sentence, the Common Elements shall not be used for any commercial purposes. The Common Elements Leaseable Space may be used for commercial purposes, but only in accordance with, and as contemplated by, Section 34.1 hereof.

(d)        Compliance with the DUO. From and after the Substantial Completion Date, Tenant shall maintain and operate the Demised Premises and the Common Elements in compliance with the DUO.

Section 7.2 Restrictions on Use. Tenant shall not use, occupy, maintain or operate the Demised Premises and the Common Elements, nor permit the same to be used, occupied, maintained or operated, nor do or permit anything to be done in, on or to the Demised Premises and the Common Elements, in whole or in part, in a manner which would in any way:

(a)        violate any construction permit or certificate of occupancy affecting the Property;

(b)        constitute a public nuisance;

52

(c)        violate any Legal Requirements or Insurance Requirements; or

(d)        violate any requirements of the DUO.

Section 7.3  Interim and Long-Term Maintenance Obligations.

(a)        Interim Maintenance Obligations. [INTENTIONALLY OMITTED]

(b)        Maintenance During Demolition Work and Tenant’s Construction Work. [INTENTIONALLY OMITTED]

(c)        Maintenance Obligations. (i) At all times during the term of this Lease. Tenant shall (and/or shall cause each Subtenant (by incorporating the following provisions in every Sublease and using all reasonable efforts to enforce the same) to):

(A)         not cause any waste to or upon the Demised Premises or the Common Elements or any part thereof, nor permit or suffer any waste to or upon the Demised Premises or the Common Elements;

(B)         not cause physical damage (other than as part of any Alteration permitted hereunder or as caused by a Casualty or Taking) to the Demised Premises or the Common Elements or any part thereof;

(C)         take good care of the Demised Premises and the Common Elements, make all repairs, restorations and replacements thereto, interior and exterior, structural and non-structural, ordinary and extraordinary, foreseen and unforeseen, necessary to (1) comply with all Legal Requirements, Insurance Requirements and the DUO and (2) maintain and operate the Demised Premises and the Common Elements to a standard at least of that of {first class retail space in} a Class “A” office building (as understood on the date hereof) in midtown Manhattan;

(D)         maintain, repair, keep, use and occupy the Demised Premises and the Common Elements in compliance with the DUO;

(E)          maintain and keep the Demised Premises and the Common Elements, and sidewalks and curbs adjacent thereto, free and clear from rubbish, dirt, ice and snow and shall not impede the use of or obstruct the same or allow the same to be so impeded or obstructed in any manner;

(F)          maintain and keep the sidewalks and vaults adjacent to the Improvements in good order, repair and condition (including the prompt repair of cracks therein and the maintenance of an even level thereof) and at all times keep the same in compliance with the DUO and Legal Requirements;

(G)         [INTENTIONALLY OMITTED];

(H)         operate and maintain the Public Amenity as set forth in the DUO and in Section 30.4 hereof;

53

(I)           prohibit sales through window openings on the streetwall, except in the case of (1) a Subtenant whose business is primarily the operation of a newsstand or ticket sales or (2) the sale of tickets for movies and other attractions, i.e., display windows shall be used for display only and not as a point of sale; and

(J)          keep the Demised Premises and the Common Elements free of graffiti and posters.

(ii)     If Tenant fails to maintain the cleanliness of the sidewalks adjacent to the Improvements at least to the level of cleanliness maintained for the overall area of the Times Square BID, as determined by the Mayor’s Office of Operations Sanitation Scorecard for as long as the same exists, or fails to promptly remove from the Demised Premises or the Common Elements evidence of graffiti and such failure continues for five (5) Business Days after notice to Tenant specifying in reasonable detail such failure and setting forth Landlord’s right to remove same on Tenant’s behalf, Landlord shall, at the end of such five (5) Business Day period, be entitled to clean such sidewalks or remove such graffiti or cause the same to be cleaned or removed, as the case may be, at the expense of Tenant. Any and all costs incurred by Landlord in connection therewith shall be paid to Landlord’s contractors or reimbursed to Landlord, as Landlord shall request, and shall accrue interest at the Interest Rate, in accordance with Section 15.1 hereof.

Section 7.4  Compliance with Legal Requirements. Tenant shall promptly comply with all Legal Requirements and Insurance Requirements, foreseen or unforeseen, ordinary as well as extraordinary, structural or non-structural, with respect to the Demised Premises and the Common Elements. Tenant shall have the right to contest the validity of any Legal Requirement or the application thereof in accordance with this Section 7.4. During such contest, compliance with any such contested Legal Requirement may be deferred by Tenant upon condition that before instituting any such proceedings, Tenant shall furnish to Landlord security reasonably satisfactory to Landlord (it being agreed that an acceptable guaranty of an Acceptable Guarantor shall be security reasonably satisfactory to Landlord under this Section 7.4), securing compliance with the contested Legal Requirement and payment of all interest, penalties, fines, fees and expenses in connection therewith. Any such proceeding instituted by Tenant shall be commenced as soon as is reasonably possible after the issuance of any notification by the applicable governmental authority with respect to required compliance with such Legal Requirement and shall be prosecuted to final adjudication with reasonable diligence. Tenant hereby agrees to indemnify Landlord from and against any and all Claims arising out of such proceeding. Notwithstanding the foregoing, Tenant promptly shall comply with any such Legal Requirement and compliance shall not be deferred if at any time there is a condition imminently hazardous to human life or health, the Property, or any part thereof, shall be in danger of being forfeited or lost, or if Landlord shall be in danger of being subject to criminal and/or civil liability or penalty (other than a fine which Tenant agrees to pay or in regard to which Tenant provides to Landlord an indemnity of Landlord by an Acceptable Guarantor) by reason of noncompliance therewith. The Obligations of Tenant to indemnify Landlord under this Section 7.4 shall survive the expiration or earlier termination of this Lease.

Section 7.5  No Waste. Tenant will not do, permit or suffer any waste to or upon the Demised Premises or the Common Elements or any part thereof. Tenant shall have the right

54

at any time and from time to time to sell or dispose of any Equipment, subject to this Lease, which may have become obsolete or unfit for use or which is no longer useful, necessary or economical in the operation of the Demised Premises or the Common Elements; provided, however, that Tenant shall have substituted or shall promptly substitute for the property so removed from the Demised Premises or the Common Elements other Equipment not necessarily of the same character but at least of equal quality in the performance of the particular function in question as that of the property so removed unless, in Tenant’s reasonable opinion as set forth in a written notice to Landlord, the property so removed was performing an obsolete function or a function no longer required in connection with the then current use of the Demised Premises or the Common Elements and replacement thereof is not necessary or appropriate to maintain, without impairment, the operation or character of the Demised Premises or the Common Elements, their use and occupancy by Subtenants or their overall value.

Section 7.6  Right of Entry. Landlord (and its designee(s)) shall have the right to enter upon the Demised Premises and the Common Elements, or any part thereof, at any time during the term hereof, for the purpose of ascertaining the condition of the Demised Premises and/or the Common Elements or whether Tenant or any Subtenant is observing and performing their respective obligations hereunder, all without hindrance or molestation from Tenant or any Person claiming by, through or under Tenant. The above mentioned rights of entry shall be exercisable (other than in the case of an emergency) at reasonable times, at reasonable hours and on reasonable, prior written notice, and Landlord shall use reasonable efforts to minimize interference with Tenant and any Subtenants, and shall exercise such right under the supervision of Tenant’s (and any such Subtenant’s) employees, agents or designees provided the same are made reasonably available to Landlord for such purpose upon reasonable advance notice to Tenant and any such Subtenant (as applicable).

Section 7.7  Utilities; Services; No Landlord Responsibility. Tenant shall be responsible for all charges for gas, electricity, light, heat, water, sewerage and power, for protective and security services, for telephone and other communication services, and for all other public or private utility services which shall be used, rendered or supplied upon or in connection with the Demised Premises or the Common Elements, or any part thereof, at any time during the term of this Lease. Landlord shall not be required to furnish any services, utilities or facilities whatsoever to the Demised Premises or the Common Elements, nor shall Landlord have any duty or obligation to make any Alteration or repair to the Demised Premises or the Common Elements. Tenant assumes the full and sole responsibility for the condition, operation, repair, alteration, improvement, replacement, maintenance and management of the Demised Premises and the Common Elements.

Section 7.8  Environmental. Tenant shall not undertake, permit or suffer any Environmental Activity in the Demised Premises or the Common Elements other than (a) in compliance with all applicable Insurance Requirements and Legal Requirements and (b) in such a manner as shall keep the Property free from any lien imposed in respect or as a consequence of such Environmental Activity. Tenant shall take all necessary steps to ensure that any permitted Environmental Activity undertaken or permitted in the Demised Premises or the Common Elements is undertaken in a manner as to provide prudent safeguards against potential risks to human health or the environment or to the Demised Premises or the Common Elements. Tenant shall notify Landlord within twenty-four (24) hours after Tenant becomes aware of the release or

55

discharge of any Hazardous Materials from or at the Demised Premises or the Common Elements and Tenant shall forthwith remediate or remove such Hazardous Materials, subject to the last sentence of this Section 7.8. Landlord shall have the right from time to time to conduct an environmental audit of the Demised Premises and/or the Common Elements, provided Landlord has reasonable cause to believe (i) Hazardous Materials have been released or discharged or is otherwise present at the Demised Premises or the Common Elements or (ii) Tenant is otherwise in violation of any Legal Requirement or Insurance Requirement relating to Hazardous Materials, and Landlord provides written notice of its intention to conduct an environmental audit together with a statement setting forth the reasons therefor. Tenant shall cooperate in the conduct of such environmental audit. The cost of such audit shall be payable by Tenant upon Landlord’s demand therefor; provided, however, that if Tenant objects to such audit by written notice received by Landlord prior to the initiation of such audit and such audit (and any more-detailed environmental audit of the same circumstances (e.g., a so-called phase II environmental assessment)) fails to identify any Environmental Activity in violation of Legal Requirements, Landlord shall pay the costs of such audit. Such audit shall be performed at reasonable times, at reasonable hours and on at least five (5) Business Days notice (except in the case of an emergency), Landlord shall make reasonable efforts to minimize interference with Tenant and any Subtenants, and shall require its audit contractor to carry commercial liability insurance in a commercially reasonable amount, naming Tenant and Landlord as additional insureds, and to deliver Tenant evidence thereof no less than five (5) Business Days prior to commencing such audit. Notwithstanding anything to the contrary in the foregoing portions of this Section 7.8: (A) nothing contained in this Section 7.8 shall require Tenant to remove or remediate any Hazardous Waste unless required to do so by Legal Requirements applicable to the Demised Premises or the Common Elements; and (B) Tenant shall have the right, in accordance with Section 7.4, to contest the validity of any Legal Requirement applicable to the remediation or removal of Hazardous Materials, provided Tenant forthwith takes all necessary steps to prevent any further discharge or release of Hazardous Materials or any other or further deterioration to the Demised Premises or the Common Elements caused by Hazardous Materials; provided, however, that, in any event, Tenant may not delay such remediation or removal during the pendency of such contest if the presence of such Hazardous Materials poses an imminent threat to the Demised Premises or the Common Elements or any persons or if such delay could expose Landlord to increased liability arising from such Hazardous Materials.

Section 7.9  Equitable Relief. Tenant hereby acknowledges that Landlord may suffer irreparable harm by reason of a breach or threatened breach of the provisions of this Article VII, and, accordingly, in addition to any other remedy that Landlord may have under this Lease or as may be permitted by applicable law, Landlord shall be entitled to seek to enjoin the action, activity or inaction that gives rise to such breach or threatened breach by Tenant.

Section 7.10  Windows. Tenant shall not clean or require, permit, suffer or allow any window in the Demised Premises or the Common Elements to be cleaned from the outside in violation of Section 202 of the Labor Law or any other Legal Requirements or Insurance Requirements.

Section 7.11  Adverse Possession. Tenant shall not suffer or permit the Demised Premises or the Common Elements or any portion thereof to be used by the public or any Person without restriction or in such manner as would, with the lapse of time, impair title to the

56

Demised Premises or the Common Elements or any portion thereof, or create the basis for a legitimate claim or claims of adverse usage or adverse possession by the public, as such, or any Person, or of implied dedication of the Demised Premises or the Common Elements, or any portion thereof.

Section 7.12  Pre-Possession Obligations. [INTENTIONALLY OMITTED]

57

ARTICLE VIII
REPAIRS

Section 8.1  Repairs.

(a)        Maintenance of Demised Premises and the Common Elements. As set forth in Section 7.3 hereof, Tenant shall (i) maintain the Demised Premises and the Common Elements for their Permitted Uses, and (ii) make all repairs, restorations and replacements thereto, interior and exterior, structural and nonstructural, ordinary and extraordinary, and foreseen and unforeseen.

(b)        Quality of Repairs. Except as provided in Section 7.4 hereof, all repairs, restorations and replacements shall be at least equivalent in standard and quality to the standard and quality of the original work or property replaced, as the case may be. All repairs, restorations and replacements shall be sufficient for the proper maintenance and operation of the Demised Premises and the Common Elements and shall be made in compliance with all Legal Requirements and Insurance Requirements, the requirements of the DUO and in compliance with the applicable provisions of Article IX hereof as if such repairs, restorations or replacements were Alterations thereunder.

(c)        Equipment; Access. Tenant covenants and agrees that throughout the term of this Lease (i) all Equipment shall be maintained in good and safe operating order and repair, and (ii) the Property shall, at all times, have adequate means of ingress and egress to and from the public streets and the sidewalks used in connection therewith. Tenant shall obtain and maintain, or cause the Subtenants to obtain and maintain, any and all permits required in connection with the operation of all portions of the Demised Premises, the Common Elements and each Demised Space. Landlord shall not be required to furnish or obtain any permits, or to make any repairs or Alterations, in, or to, the Demised Premises or the Common Elements or the Equipment during the term of this Lease. Tenant hereby assumes the full and sole responsibility for the condition, operation, repair, replacement, maintenance and management of the Demised Premises, the Equipment and, jointly with the tenants under the other Severance Subleases, the Common Elements.

58

ARTICLE IX
ALTERATIONS AND COMPLETION OF THE IMPROVEMENTS

Section 9.1  Right to Undertake Alterations. Subject to the provisions of this Article IX, Tenant shall have the right to make Alterations in and to the Demised Premises and the Common Elements.

Section 9.2  Performance of Alterations.

(a)        Standards for All Alterations.

(i)          All Alterations shall be performed with due diligence, continuity, in a good and workmanlike manner and in accordance with good construction practice, subject however to Unavoidable Delays.

(ii)         All Alterations shall be performed and completed in accordance with the DUO, the applicable Alteration Plans and Specifications as they relate to the DUO, all Legal Requirements, Insurance Requirements and the provisions of Articles VIII and XI hereof, as applicable.

(iii)        The Demised Premises and the Common Elements shall be free of liens (it being understood that Tenant shall have up to forty five (45) days to cause any liens imposed on the Demised Premises and the Common Elements to be discharged or bonded and to provide evidence thereof to Landlord).

(iv)       All Alterations, when completed, shall be of the standard and quality commonly required at Class “A” office buildings (as understood on the date hereof) in midtown Manhattan.

(v)        Tenant shall maintain a complete set of “as built” plans and specifications or marked construction documents and, if prepared by or for Tenant or any Person doing such Alterations, auto CAD Disks with respect to any such Alteration, and shall, when and as requested by Landlord, deliver a copy thereof (together with all change orders, field changes, and other changes that comprise a complete record of all such work) to Landlord.

(vi)       No temporary or permanent certificate of occupancy shall be requested by or for Tenant with respect to the Improvements or any portion thereof unless the Alteration for which such certificate is being sought has been substantially completed in accordance with the applicable provisions of the DUO.

(vii)      Each agreement between Tenant and any contractor, materialman or other party performing any Alteration shall contain a representation made by such contractor, materialman or other party that such party is not a Prohibited Person and shall contain a termination right for the benefit of Tenant if such representation shall at any time be untrue.

(b)        Conditions Precedent to Commencement of Any Alteration. Tenant shall not, nor shall Tenant permit any Subtenant or any other Person, to commence any Alteration

59

(other than Interior Construction Work) governed by any element of the DUO or affecting a Structural Component (other than by having a Nonadverse Structural Effect), unless and until:

(i)          Tenant, at its sole cost and expense, shall have obtained (and thereafter shall maintain) all necessary permits and authorizations required by Legal Requirements for the commencement and prosecution of such work and for approval thereof upon completion, and Tenant shall deliver to Landlord copies of any and all of such permits and/or authorizations required to commence such work prior to the commencement thereof;

(ii)         Tenant shall have delivered to Landlord the following items: (A) copies of all Alteration Plans and Specifications which have been stamped as approved by the New York City Buildings Department (it being agreed that the Alteration Plans and Specifications submitted to the New York City Buildings Department for approval may be only those Alteration Plans and Specifications approved by Landlord to the extent required under this Lease); (B) executed counterparts (or copies thereof) of the Collateral Assignments in respect of all construction agreements between Tenant and any general contractor, construction manager, the Design Architect and the other Architects; (C) construction schedules and staging plans; and (D) certificates for the insurance required by Section 10.1 hereof, together with evidence reasonably satisfactory to Landlord of the payment of the premiums therefor; and

(iii)        (A) In respect of Alterations within the Demised Premises, there shall be no Event of Default hereunder, and (B) in respect of Alterations within the Common Elements, there shall be no Event of Default hereunder arising from Tenant’s obligations relating to the Common Elements.

(c)        Obligations Following Completion of Any Alteration. Promptly following completion of any Alteration, Tenant shall furnish to Landlord:

(i)          In respect of any Alteration governed by any element of the DUO, an Architect’s Certification (which Architect’s Certification has not been objected to within ten (10) Business Days of Landlord’s receipt thereof), prepared by an Architect approved (or deemed approved) by Landlord in accordance with Section 9.6(a)(ii) hereof, that (A) the Architect has examined the applicable Alteration Plans and Specifications, and (B) to its best knowledge, after appropriate investigation, the Alteration, as then constructed, has been completed substantially and in all material respects in accordance with the applicable Alteration Plans and Specifications as it relates to and complies with the DUO;

(ii)         A copy or copies of the temporary or permanent certificate(s) of occupancy for such Alteration, if applicable;

(iii)        (A) To the extent not previously delivered to Landlord, in respect of the entire Demised Premises and Common Elements other than any Subtenant’s initial tenant improvements to its Demised Space, a complete set of “as built” plans in duplicate (one of such plans being delivered in electronic format (including CAD drawings)) showing such construction, as then constructed, if available, and if not available, “marked” final drawings, and (B) in respect of any Subtenant’s (including, without limitation, NYTC or any Affiliate of NYTC in its capacity as a Subtenant) initial tenant improvements to its Demised Space, a complete set

60

of “as built” plans in duplicate (one of such plans being delivered in electronic format (including CAD drawings)), if available, and if not available, “marked” final drawings, if available;

(iv)       Upon request by Landlord, copies of any documents filed with the New York City Department of Buildings;

(v)        Any permits or authorizations which are required for such Alteration as completed;

(vi)       Copies of all guaranties or certifications called for under any construction agreements, promptly after receipt thereof by Tenant or any Tenant Related Entities;

(vii)      Copies of all New York Board of Fire Underwriters Certificates (or the equivalent certificate of any successor organization) for such Alteration;

(viii)     Copies of duly executed waivers of mechanic’s lien from each provider of materials, supplies, equipment or labor to the Demised Premises and/or the Common Elements relating to such Alteration or other evidence of payment reasonably satisfactory to Landlord, promptly after receipt thereof by Tenant; and

(ix)        Any plans and specifications and other applicable documents in Tenant’s possession reasonably requested by Landlord to demonstrate compliance with the DUO.

(d)        No Responsibility of Landlord. Landlord shall have no responsibility to Tenant or to any Subtenant, architect, engineer, contractor, subcontractor, supplier, materialman, ▇▇▇▇▇▇▇ or other person, firm or corporation who shall engage in or participate in any construction of any Alteration. Notice is hereby given that Landlord shall not be liable for any labor or materials furnished or to be furnished to Tenant upon credit, and that no mechanic’s or other lien for any such labor or materials shall attach to or affect the estate or interest of Landlord in and to the Demised Premises. Whenever and as often as any such lien shall have been filed against the Demised Premises, whether or not based upon any action or interest of Tenant or any Subtenant, or if any conditional ▇▇▇▇ of sale shall have been filed for or affecting any materials, machinery or fixtures used in the construction, repair or operation thereof, or annexed thereto by Tenant, Tenant shall promptly take such action by bonding, deposit or payment as will remove or satisfy the lien or conditional ▇▇▇▇ of sale.

(e)        Project Area. Tenant shall require its general contractor, construction manager, major trade contractors and all other workers in the Demised Premises or the Common Elements connected with any Alteration to work harmoniously with each other, and with other contractors and workers at the Property, and Tenant shall not engage in, permit or suffer, any conduct which may disrupt such harmonious relationship. Tenant shall take commercially reasonable efforts to (a) enforce the aforesaid requirements and (b) cause its general contractor, construction manager and major trade contractors to minimize any interference with the use, occupancy and enjoyment of the Property by other occupants and visitors thereof.

61

(f)         Title to Materials. All materials and other Equipment incorporated in the Demised Premises or the Common Elements, as the case may be, excluding any Tenant or Subtenant personal property, shall, effective upon their incorporation into the Demised Premises or the Common Elements, as the case may be, and at all times thereafter, constitute the property of Landlord and shall constitute a portion of the Demised Premises or the Common Elements, as the case may be.

Section 9.3  Construction Agreements. All construction agreements valued at One Hundred Thousand Dollars ($100,000) or more shall include the following provisions:

(a)        [“Contractor” / “Subcontractor” / “Materialman”] hereby agrees that immediately upon the purchase by [“contractor” / “subcontractor” / “materialman”] of any building materials to be incorporated in the Demised Premises and the Common Elements (as such terms are defined in the Agreement of Sublease, dated December    , 2001, between Owner and NYT Real Estate Company LLC (the “Lease”)), such materials shall become the sole property of the Landlord (as defined in the Lease), notwithstanding that such materials have not been incorporated in, or made a part of, such Demised Premises and/or the Common Elements at the time of such purchase; provided, however, that the Landlord (as defined in the Lease) shall not be liable in any manner for payment to [“contractor” / “subcontractor” / “materialman”] in connection with the purchase of any such materials, and Landlord shall have no obligation to pay any compensation to [“contractor” / “subcontractor” / “materialman”] by reason of such materials becoming the sole property of the Landlord.

(b)        [“Contractor” / “Subcontractor” / “Materialman”] hereby agrees that notwithstanding that [“contractor” / “subcontractor” / “materialman”] performed work at the Demised Premises and/or the Common Elements or any part thereof, Landlord shall not be liable in any manner for payment to [“contractor” / “subcontractor” / “materialman”] in connection with the work performed at the Demised Premises and/or the Common Elements.

(c)        [“Contractor” / “Subcontractor” / “Materialman”] hereby agrees to make available for inspection by the Landlord, during reasonable business hours, [“contractor’s” / “subcontractor’s” / “materialman’s”] books and records relating to the Alterations / Condemnation Restoration / Restoration (as all defined in the Lease) being performed or the acquisition of any material or equipment to be incorporated into the Demised Premises and/or the Common Elements.

(d)        The Landlord is not party to this [“contract” / “agreement”] and will in no way be responsible to any party for any claims of any nature whatsoever arising or which may arise from such [“contract” / “agreement”].

(e)        All covenants, representations, guaranties and warranties of [“contractor” / “subcontractor” / “materialman”] set forth in the preceding four paragraphs shall be deemed to be made for the benefit of the Landlord and shall be enforceable by the Landlord.

Section 9.4  Use of Plans and Specifications. Landlord shall have the right to use, without any payment or other compensation by Landlord therefor, solely for the purposes set forth in the following sentence, (a) the Approved Schematic Design Plans, the Design

62

Development Plans, the Final Plans and Specifications and any Alteration Plans and Specifications, (b) any surveys and “as built” plans showing the applicable Alteration, and (c) any other plans and specifications with respect to such Alteration. Landlord shall have the right to use the items enumerated in clauses (a) through (c) above to facilitate the exercise of its rights under this Lease and, subsequent to the expiration or termination of this Lease where Landlord retains title to the Demised Premises or the Common Elements, for the construction, use, operation and Alteration of the Demised Premises or the Common Elements and other purposes incidental thereto; subject, however, to the following restrictions:

(i)          the work product of the Design Architect (the “DA Work Product”) may be used only for the completion of the Alteration in question or for reference purposes for additions, extensions, remodeling or modification of the Alteration in question not designed by the Design Architect; however, ownership rights to said DA Work Product and rights therefrom may not be transferred to another party for its use in the design of another project;

(ii)         Design Architect retains all statutory and reserve rights, including copyright, to typical or standard design details, depictions, instructions and specifications regularly used by the Design Architect in the ordinary course of its architectural practice;

(iii)        Design Architect retains the right to publish images and appropriate technical information from Design Architect’s work in professional journals and for portfolio publicity purposes;

(iv)       Design Architect is not responsible for errors or discrepancies on any electronic portable media on which Design Architect’s design documents are transferred except to the extent that such errors or inconsistencies are caused by or contributed to by Design Architect when it transfers such information to such media or while such media are in Design Architect’s possession or control;

(v)        in connection with any publication of photographs or other representations of the Alteration in question where the design of the Alteration in question is the subject of the publication, if applicable, the party causing such publication will endeavor to see that reference to the Design Architect as architect for the Alteration in question is included in any such publication as follows: ▇▇▇▇▇ ▇▇▇▇▇ Building Workshop, Design Architects, with Fox and ▇▇▇▇▇ Architects, Executive Architect; and

(vi)       if the Project is materially modified after its completion and Design Architect has not consented or participated in such modification, no reference shall be made to ▇▇▇▇▇ ▇▇▇▇▇ Building Workshop or Fox and ▇▇▇▇▇ Architects, as the architect(s) for the Alteration in question, and the owner of the Alteration in question shall use its diligent efforts to prevent the dissemination of information regarding such completion or modification which includes any such reference.

Nothing in this Section 9.4 shall permit the selection and approval by Tenant of a Design Architect other than in accordance with Section 9.6(a) hereof. The provisions of this Section 9.4 shall survive any such expiration or earlier termination of this Lease.

63

Section 9.5  Major Alterations.

(a)        Conditions to Performance. In addition to the requirements of Section 9.2 hereof (A) if the reasonably estimated cost of any proposed Alteration in or (1) to the Demised Premises or any portion thereof calculated as a whole or (2) to the Common Elements or any portion thereof calculated as a whole, equals or exceeds Two Million Dollars ($2,000,000) (Adjusted for Inflation from and after the Substantial Completion Date), excluding the cost of interior cosmetic and decorative items included in such Alteration, either individually or in the aggregate with other Alterations in or to the Demised Premises and the Common Elements or any portion thereof undertaken by the same party during any Lease Year in connection with a single job that is performed in stages (each, a “$2,000,000+ Alteration”), (B) to the extent that any portion of any Alteration involves work which will affect any Structural Component other than by having a Nonadverse Structural Effect (each, a “Structural Alteration”), or (C) to the extent that any portion of any Alteration affects any portion of the Demised Premises or the Common Elements that is governed by any element of the DUO (each, a “DUO Alteration”; any Alteration described by clauses (B) or (C) above, a “DUO/Structural Alteration”; any Alteration described by clauses (A), (B) or (C) above, a “Major Alteration”):

(i)          Tenant shall furnish to Landlord the following, in respect only of a DUO/Structural Alteration, at least thirty (30) Business Days prior to commencement of any such DUO/Structural Alteration, complete proposed Alteration Plans and Specifications for such DUO/Structural Alteration (which shall include complete information and dimensions necessary for the construction and finishing of the applicable DUO/Structural Alteration and for any engineering required in connection therewith (both standard architectural drawings and in electronic format (including CAD drawings))), prepared by an Architect or by a reputable, licensed professional engineer selected by Tenant (or any Subtenant, as applicable), which submittal shall comply with all applicable Legal Requirements and Insurance Requirements, and any other drawings, information or samples which Landlord may reasonably request, all of the foregoing to be subject to Landlord’s review and approval (1) in respect of any DUO Alteration, only for compliance with the DUO in accordance with the procedures, and within the time periods, applicable to the review and approval of “Design Development Plans” and “Final Plans”, as the case may be, as prescribed in the applicable DUO Exhibit and (2) in respect of any Structural Alteration, in accordance with the procedures, and within the time periods, applicable to the review and approval of “Design Development Plans” and “Final Plans”, as the case may be, as prescribed in Exhibit E-6 attached hereto; provided, however, (A) Alteration in connection with any DUO/Structural Alteration shall not commence until Landlord shall have approved the proposed Alteration Plans and Specifications for such DUO/Structural Alteration (it being agreed that Landlord’s disapproval of one or more DUO/Structural Alterations shall not impede Tenant’s right to proceed pursuant hereto with any Landlord approved DUO/Structural Alteration so long as the Alteration being pursued is not related in any way to the Alteration that has not been approved by Landlord), and (B) that Landlord’s approval of the proposed Alteration Plans and Specifications (or any modifications thereto) shall not be, nor shall be construed as being, or relied upon as, a determination that any such proposed Alteration Plans and Specifications (or any modifications thereto) comply with any Legal Requirements or Insurance Requirements;

64

(ii)         Tenant shall furnish to Landlord, at least ten (10) Business Days prior to commencement of any $2,000,000+ Alteration, any one of the following: (A) cash or an irrevocable letter of credit in such amount as shall be satisfactory to Landlord; (B) payment and performance bonds in forms and by sureties reasonably satisfactory to Landlord; (C) a guaranty in form and from a creditworthy entity reasonably satisfactory to Landlord; or (D) such other security as shall be reasonably satisfactory to Landlord (it being agreed that an acceptable guaranty of an Acceptable Guarantor shall be security reasonably satisfactory to Landlord under this Section 9.5(a)(ii));

(iii)        Each Major Alteration shall be conducted under the supervision of a reputable and experienced architect, engineer or construction professional reasonably acceptable to Landlord (it being acknowledged that, pursuant to Section 9.6(a) hereof, a DUO/Structural Alteration may require the participation of the Design Architect, an other Architect or an Engineer); and

(iv)       Each Major Alteration subject to this Section 9.5(a) shall conform substantially and in all material respects to the Alteration Plans and Specifications approved therefor pursuant to Section 9.5(a)(i) or Section 9.5(b)(ii) hereof.

(b)        Alteration Plans and Specifications.

(i)          Approval Standard. In the event that the Design Architect is ▇▇▇▇▇ ▇▇▇▇▇ Building Workshop, or a Replacement Design Architect approved or deemed approved by the Landlord in accordance with the Replacement Design Architect Approval Criteria, the standard for approval of all DUO design reviews shall be “Landlord’s reasonable judgment”. In the event that the Design Architect is not ▇▇▇▇▇ ▇▇▇▇▇ Building Workshop, or a Replacement Design Architect approved or deemed approved by the Landlord in accordance with the Replacement Design Architect Approval Criteria, the standard for all DUO design reviews shall be “Landlord’s sole discretion”.

(ii)         Modification of Alteration Plans and Specifications. If Tenant desires to modify Alteration Plans and Specifications after they have been approved or deemed approved by Landlord pursuant to Section 9.5(a)(i) hereof, and either (A) Tenant has not provided to Landlord an Architect’s Certification, prepared by an Architect or an Engineer approved (or deemed approved) by Landlord in accordance with Section 9.6(a)(ii) hereof, describing the proposed modification and stating that such modification is not to have been governed by any element of the DUO or does not affect a Structural Component (other than by having a Nonadverse Structural Effect), or (B) such modification represents an immaterial field change to such plans (notification of each such immaterial field change being promptly provided to Landlord by Tenant together with adequate identification of such change and an explanation of the change made), Tenant shall submit the proposed modifications to Landlord, clearly identifying each such modification, together with a statement of Tenant’s reasons therefor. If (a) Tenant has submitted such aforesaid Architect’s Certification and such Architect’s Certification has not been objected to by Landlord within five (5) Business Days after Landlord’s receipt thereof or (b) such modification represents an immaterial field change and Tenant has provided the information required in clause (2) of this Section 9.5(b)(ii), then such submission of the proposed modifications for Landlord’s review and approval is not required. Unless and until a

65

proposed modification is clearly identified by Tenant, such modification shall not be considered by Landlord and the prior set of approved plans shall govern in respect of such modification. Landlord shall not disapprove any matter previously submitted and approved, or deemed approved by Landlord, except to the extent that the proposed modification affects any matter so approved or deemed approved. If Landlord determines, in accordance with the applicable provisions of Section 9.5(a)(i) hereof, that any proposed modifications are acceptable to Landlord, Landlord shall so notify Tenant. If Landlord determines, in accordance with the applicable provisions of Section 9.5(a)(i) hereof, that such modifications are not otherwise acceptable, Landlord shall so notify Tenant, setting forth in reasonable detail Landlord’s reasons for such determination. In the event Landlord determines the modification to be unacceptable, Tenant shall revise the proposed modifications so that they are acceptable to Landlord and resubmit them to Landlord for review in accordance with the standards hereinabove set forth. Each review by Landlord under this Section 9.5(b)(ii) shall be carried out within fifteen (15) Business Days of the date of submission of the proposed modifications to the Alteration Plans and Specifications unless the proposed modification substantially alters the Alteration Plans and Specifications, in which event, so long as Landlord notifies Tenant within such fifteen (15) Business Day period that Landlord so regards the proposed modification, Landlord’s review shall be carried out within twenty (20) Business Days of the date of submission of the proposed modification.

(iii)        Compliance with Legal Requirements. The Alteration Plans and Specifications (and any modification thereto) shall comply with all Legal Requirements and Insurance Requirements (but need not comply with the Zoning Resolution, it being understood that Alteration may be constructed without reference to the provisions of the Zoning Resolution). Landlord’s approval of any such Alteration Plans and Specifications (or any modification thereto) drawings shall not be, nor shall be construed as being, or relied upon as, a determination that any such Alteration Plans and Specifications (or any modification thereto) drawings comply with any Legal Requirements or Insurance Requirements.

(iv)       Submission in Triplicate. All drawings submitted to Landlord pursuant to this Section 9.5 shall be submitted in triplicate.

(v)        Production Architect. Notwithstanding any provision of this Lease requiring the execution by the Design Architect of any certificate or other document, Landlord agrees that such certificate or other document (including, without limitation, any Architect’s Certificate) may be executed, in lieu thereof, by the Production Architect on behalf of the Design Architect once approved by the Design Architect.

(c)        Right of Inspection. Landlord shall have the right, during the performance of any Alteration governed by any element of the DUO or affecting a Structural Component (other than by having a Nonadverse Structural Effect), to (i) maintain, at Landlord’s cost, field personnel or other representatives at the Demised Premises or in the portions of the Improvements constituting the Common Elements to observe Tenant’s construction methods and techniques and to determine that such Alteration is being performed in accordance with the provisions of this Lease, and (ii) have such field personnel or other designers attend Tenant’s job and/or safety meetings (it being agreed that, in respect of both of clauses (i) and (ii) immediately preceding, such Landlord’s field personnel or other representatives shall not instruct contractors,

66

interfere with or impede the work of such or other workers in respect of any such Alteration). Landlord agrees that the presence and activities of such field personnel or other representatives shall not impede in any respect the performance of such Alteration. No such observation or attendance by Landlord’s personnel, designers or other representatives shall impose upon Landlord responsibility for any failure by Tenant to comply with any Legal Requirements, Insurance Requirements or safety practices in connection with such Alteration or constitute an acceptance of any such Alteration which does not comply in all respects with the provisions of this Lease.

Section 9.6  Approval of Project Participants.

(a)        Approval of Architects.

(i)          Design Architect. The design architect for any Alteration (other than Interior Construction Work) governed by any element of the DUO shall be the Design Architect. If Tenant shall desire to replace ▇▇▇▇▇ ▇▇▇▇▇ Building Workshop or any Replacement Design Architect previously approved by Landlord as the Design Architect, then such replacement Design Architect proposed by Tenant shall be approved by Landlord (such approved replacement Design Architect, the “Replacement Design Architect”) so long as the proposed Replacement Design Architect, in Landlord’s reasonable judgment, meets all of the following criteria (the “Replacement Design Architect Approval Criteria”): (A) the proposed Replacement Design Architect is known for artistically combining architecture and engineering in inventive and unique ways; (B) the proposed Replacement Design Architect is capable of creating architecture that sensitively and imaginatively addresses the needs of users of the improvement as well as users of adjacent city sidewalks; (C) the proposed Replacement Design Architect is known for sensitive and imaginative use of materials to resolve problems in new ways; (D) the proposed Replacement Design Architect is known for an influential, diverse body of work, all of which is, as a whole, internationally recognized for high standards of excellence in architecture; (E) the proposed Replacement Design Architect is the recipient of international awards and prizes; (F) the proposed Replacement Design Architect has experience in creating architecture that is responsive to complex urban sites; and (G) the proposed Replacement Design Architect will be involved in all phases of the design, including an active role while the Alteration in question is under construction. In the event that Tenant proposes to replace the Design Architect with an architect that, in Landlord’s reasonable judgment, does not meet the Replacement Design Architect Approval Criteria, then Landlord may approve or disapprove the proposed Design Architect in Landlord’s sole discretion. Any proposed Replacement Design Architect shall, in any event, have substantial experience in construction projects that are comparable in scope and visibility to the Improvements and shall not be a Prohibited Person. If Landlord fails to approve or reject any architect nominated by Tenant to be a Design Architect within sixteen (16) Business Days after the written submission to Landlord of such architect’s name and other information (including adequate portfolio information) sufficiently detailed to permit Landlord to make a reasoned judgment of the appropriateness of the proposed architect for the ▇▇▇▇ ▇▇▇▇▇▇ Project, or Landlord fails to make reasonable requests for additional information related thereto within such time period and thereafter to approve or reject such architect within eleven (11) Business Days after written submission of such additional information as Landlord shall have reasonably requested, Tenant shall have the right to give Landlord a reminder notice, which reminder notice shall contain the following caption in bold and capitalized type:

67

YOUR APPROVAL OF                            AS THE DESIGN ARCHITECT SHALL BE DEEMED GIVEN IF YOU FAIL TO APPROVE OR REJECT SUCH PERSON WITHIN FIVE (5) BUSINESS DAYS FROM THE DATE OF YOUR RECEIPT OF THIS NOTICE.

If Landlord fails to approve or reject the proposed architect within five (5) Business Days after its receipt of such reminder notice, such architect shall be deemed approved by Landlord. Any rejection of an architect by Landlord shall be accompanied by specific reasons set forth in reasonable detail.

(ii)         Other Architects and Engineers. Except in respect of the Design Architect (which shall be approved in accordance with Section 9.6(a)(i) hereof), the Production Architect and each other architect and engineer proposed to be engaged in respect to any Alteration (other than Interior Construction Work or demolition work) (A) governed by any element of the DUO, (B) affecting a Structural Component (other than by having a Nonadverse Structural Effect), or (C) of a value of greater than $1,000,000 (which amount shall be Adjusted for Inflation from the Substantial Completion Date), shall be approved by Landlord: (1) in respect of any Alteration subject to clause (A) of this Section 9.6(a)(ii), in Landlord’s sole discretion; and (2) in respect of any Alteration subject only to clause (B) or (C) of this Section 9.6(a)(ii), in Landlord’s approval, not to be unreasonably withheld. Each such Architect shall have substantial experience in construction projects that are comparable in scope to such architect’s intended work at the Improvements and shall not be a Prohibited Person. Each such Engineer shall (x) be of recognized standing among its peers, (y) have at least ten (10) years experience in providing engineering services in respect of highrise buildings in urban centers and (z) not be a Prohibited Person. If Landlord fails to approve or reject any architect nominated by Tenant to be an Architect (other than the Design Architect), or engineer nominated by Tenant to be an Engineer, as the case may be, within sixteen (16) Business Days after the written submission to Landlord of such architect’s name and other information (including adequate portfolio information) sufficiently detailed to permit Landlord to make a reasoned judgment of the appropriateness of the proposed architect or engineer, as the case may be, for the ▇▇▇▇ ▇▇▇▇▇▇ Project, or Landlord fails to make reasonable requests for additional information related thereto within such time period and thereafter to approve or reject such architect or engineers, as the case may be within eleven (11) Business Days after written submission of such additional information as Landlord shall have reasonably requested, Tenant shall have the right to give Landlord a reminder notice, which reminder notice shall contain the following caption in bold and capitalized type:

YOUR APPROVAL OF                            AS AN ARCHITECT/ENGINEER SHALL BE DEEMED GIVEN IF YOU FAIL TO APPROVE OR REJECT SUCH PERSON WITHIN FIVE (5) BUSINESS DAYS FROM THE DATE OF YOUR RECEIPT OF THIS NOTICE.

If Landlord fails to approve or reject the proposed architect or engineers, as the case may be, within five (5) Business Days after its receipt of such reminder notice, such architect or engineer, as the came may be, shall be deemed approved by Landlord. Any rejection of an architect or engineer, as the case may be, by Landlord shall be accompanied by specific reasons setting forth in reasonable detail the basis for such rejection.

68

(b)        Approval of Contractors.

(i)          General Standard; Prohibited Persons. All Alterations shall be performed and/or managed by one or more reputable and responsible general contractor(s) (or if Tenant, or any Subtenant, as the case may be, hires contractors instead of a general contractor, such contractors) or construction manager(s). No general contractor, construction manager, Major Contractor or other contractor that is engaged to do any Alteration shall be a Prohibited Person. Tenant shall cause such restriction to be inserted in each Sublease.

(ii)         Major Contractors. Prior to the time at which Tenant solicits any bids for labor or materials for any Alteration (other than Interior Construction Work) governed by any element of the DUO or affecting a Structural Component (other than by having a Nonadverse Structural Effect), Tenant shall furnish Landlord for its approval (to the extent hereinafter provided) a list of all Persons Tenant intends to solicit for any such work who, if so selected, would (a) have a contract amounting to a value of greater than $1,000,000 (which amount shall be Adjusted for Inflation from the Substantial Completion Date), or (b) otherwise be responsible for an item that is governed by the DUO or affects a Structural Component, other than by having a Nonadverse Structural Effect (any such contractor, a “Major Contractor”). The list shall state the name, address, phone number and EIN of each such Major Contractor and each of its Principals and in what capacity such Major Contractors would be performing work at the Demised Premises or the Common Elements. Landlord shall have the right to disapprove any Major Contractor only: (1) if such Major Contractor is a Prohibited Person; or (2) if such Major Contractor, in Landlord’s reasonable judgment, demonstrated a failure, based on prior job performance, to exercise due care in the performance of the work for which such Major Contractor may be hired in respect of the Improvements (it being agreed that no Person listed on Exhibit I attached hereto may be disapproved by Landlord on the basis described in this clause (2) of this Section 9.6(b)(ii)). If Landlord fails to approve or reject any Major Contractor within eleven (11) Business Days after the receipt by Landlord of such Major Contractor’s name, address, phone number and EIN (and those of its Principals), or Landlord fails to make reasonable requests for additional information related thereto within such time period and thereafter to approve or reject such Major Contractor within six (6) Business Days after written submission of such additional information as Landlord shall have reasonably requested, Tenant shall have the right to give Landlord a reminder notice, which reminder notice shall contain the following caption in bold and capitalized type:

YOUR APPROVAL OF                            AS A MAJOR CONTRACTOR SHALL BE DEEMED GIVEN IF YOU FAIL TO APPROVE OR REJECT SUCH PERSON WITHIN FIVE (5) BUSINESS DAYS FROM THE DATE OF YOUR RECEIPT OF THIS NOTICE.

If Landlord fails to approve or reject the proposed Major Contractor within five (5) Business Days after its receipt of such reminder notice, such Major Contractor shall be deemed approved by Landlord. Any rejection of a Major Contractor by Landlord shall be accompanied by specific reasons set forth in reasonable detail. Landlord approves, on the date hereof, the Major Contractors listed on Exhibit I attached hereto.

69

Section 9.7  Alterations Certification. If Legal Requirements require that plans be submitted to the New York City Department of Buildings in respect of a given Alteration, Tenant shall deliver to Landlord at least seven (7) Business Days prior to the commencement of work in respect thereof a certification (the “Alterations Certification”) signed by a Qualified Certifying Party of Tenant (a) describing the applicable Alteration, (b) setting forth the reasonably estimated cost thereof and (c) stating whether such Alteration will or will not affect any Structural Component (or if such Alteration will affect a Structural Component, stating whether or not such Alteration will have only a Nonadverse Structural Effect) and will or will not affect any element of the DUO. A copy of the Alteration Plans and Specifications, if any, prepared for any such Alteration shall be submitted with the Alterations Certification, and the architect or engineer who prepared such plans and specifications shall also sign the Alterations Certification. If the statement set forth in the Alterations Certification indicates that the Alteration in question will affect any Structural Component (other than by having a Nonadverse Structural Effect) or any element of the DUO or is otherwise untrue, or if Tenant fails to submit an Alterations Certificate, the applicable Alteration shall be subject to the requirements of Section 9.5(a) hereof and the commencement of the Alteration without compliance with the requirements of Section 9.5(a) hereof shall constitute a Default hereunder.

Section 9.8  Reimbursement of Expenses of Review. Tenant shall reimburse Landlord for the commercially reasonable, actual out-of-pocket fees and expenses of any Architect or Engineer selected by Landlord to review (i) any plans and specifications for any Alteration subject to Section 9.5(a) hereof or (ii) the correctness of the Alterations Certification associated therewith is being contested by Landlord; provided, however, that (a) such fees and expenses shall be limited to those incurred in reviewing the portion of such plans and specifications governed by any element of the DUO or affecting a Structural Component (other than by having a Nonadverse Structural Effect), and (b) Tenant’s reimbursement obligation under this Section 9.8 shall not exceed one-half percent (0.5%) of the cost of such Alteration.

Section 9.9  Nonadverse Structural Effect. Tenant may provide to Landlord a statement of an Architect or an Engineer approved by Landlord pursuant to this Lease, in the form of Exhibit J attached hereto, certifying that the contemplated Alteration shall have no adverse effect on a Structural Component that is greater than a Nonadverse Structural Effect. Such statement shall be based solely on such Engineer’s or Architect’s independent assessment of the Alteration in question and not on any representations or other statements made by Tenant or any other party. Landlord shall approve or disapprove of such Engineer’s or Architect’s statement, in Landlord’s reasonable discretion, within ten (10) Business Days of Landlord’s receipt thereof.

Section 9.10  Completion of Improvements.

(a)        Tenant’s Subway Improvements.

(i)          Landlord shall have the continuing right to review any modifications to the Site 8 South Subway Agreement and to approve same solely to the extent that such modifications do not impact the DUO. In the event of any conflict between the terms of this Lease and the terms of the Site 8 South Subway Agreement in respect of the performance of Tenant’s Subway Improvements, the terms of the Site 8 South Subway Agreement shall prevail.

70

(ii)         Tenant shall be responsible for all costs in respect of Tenant’s Subway Improvements. Subject to Section 3.04(b) of the Site 8 South LADA, an amount equal to the Tenant’s Percentage Allocation (or another allocation between the tenants of all Severance Subleases as to which all such tenants have jointly notified Landlord on or before the Lease Assignment Date) of the actual costs of Tenant’s Subway Improvements in excess of Four Million Dollars ($4,000,000) shall be reimbursed to Tenant as a credit against PILOT under this Lease, but only to the extent that any such excess expenditure was reasonably required, in Landlord’s reasonable opinion based on a detailed accounting of such costs provided by Tenant to Landlord, in order to construct the minimum improvements that would be required under the Zoning Resolution as of June 20, 2000.

(b)        Final Completion; Permanent Certificate of Occupancy. Tenant shall, using commercially reasonable efforts, diligently and continuously pursue the development of the Demised Premises and the Common Elements until the Demised Premises and the Common Elements shall be complete and fully operational. Within a reasonable period after the completion of the initial build out in respect of Demised Space and the Common Elements constituting one hundred percent (100%) of the Square Feet to be occupied in the Demised Space and the Common Elements, Tenant shall with reasonable diligence obtain a permanent certificate of occupancy for the Demised Premises and the Common Elements.

Section 9.11  Disputes. Disputes regarding any aspect of this Article IX, other than those expressly stated otherwise or those that pertain to the DUO, may be referred to arbitration pursuant to Section 16.3 hereof.

71

ARTICLE X
INSURANCE

Section 10.1  Insurance. At all times during the term of this Lease, Tenant shall, in respect of the Demised Premises and the Common Elements, keep and maintain, or cause to be kept and maintained, policies of:

(a)        commercial property insurance covering, at a minimum, the perils insured under the ISO special causes of loss form (CP 10 30) (or a substitute form providing equivalent coverage) (including (i) debris removal, demolition and increased cost of construction that are caused by operation of Legal Requirements regulating the construction or repair of damaged facilities, (ii) flood (subject to Section 10.1(i) hereof) and, to the extent available at commercially reasonable rates, earth movement coverage, and (iii) coverage against collapse and including an ordinance and law endorsement, in an amount not less than the then Full Insurable Value subject to the foregoing qualification with respect to flood and earthquake insurance and subject to commercially reasonable deductibles reasonably approved by Landlord;

(b)        commercial general liability insurance written on ISO occurrence form CG 00 01 (or a substitute form providing equivalent coverage, which shall include a broad form CGL endorsement if the substitute form is a 1973 edition CGL form), which shall cover liability of the Tenant or the Condominium Association, as the case may be, arising from operations of the Demised Premises or the Common Elements, as the case may be, independent contractors, products and completed operations, personal injury and advertising injury and liability assumed under an insured contract, protecting and indemnifying Tenant (and the Condominium Association, as applicable) and Landlord, from and against any and all claims for damages or injury to person or property or for loss of life or of property occurring upon, in, or about the Demised Premises and the Common Elements applicable and the adjoining streets, vaults, sidewalks and passageways, such insurance to afford immediate protection, to the limit of not less than Fifty Million Dollars ($50,000,000) (as such sum shall be Adjusted for Inflation from the Commencement Date) per occurrence and Fifty Million Dollars ($50,000,000) (as such sum shall be Adjusted for Inflation from the Commencement Date) in the aggregate for all occurrences within each policy year; such policy shall include a provision that said aggregate limit shall apply separately at the Demised Premises and the Common Elements, as applicable, or, alternatively, such coverage shall be in an amount not less than One Hundred Million Dollars ($100,000,000) (as such sum shall be Adjusted for Inflation from the Commencement Date) per occurrence and in the aggregate, and that said insurer will provide notice to the Landlord if said aggregate is reduced by either payments of a claim or establishment of a reserve for claims if said payments or reserves exceed Five Million Dollars ($5,000,000); Tenant agrees that if the aggregate limit is reduced by the payment of a claim or establishment of a reserve to take all practical immediate steps to have the aggregate limit restored by endorsement to the existing policy or the purchase of an additional insurance policy;

(c)        boiler and pressure vessel insurance including pressure pipes for the Demised Premises and the Common Elements;

72

(d)        if Tenant is not NYTC or a Related Entity, business interruption insurance in an amount no less than the sum of PILOT and Theater Surcharge for one (1) year as determined by Tenant, subject to Landlord’s prior written approval and adjustments from time to time but not more frequently than once annually for the first five (5) years after the Commencement Date and thereafter not more frequently than once every two (2) years, and which insurance shall be payable to Landlord or Tenant, as their respective interests may appear;

(e)        workers’ compensation and employers liability insurance covering all persons employed at or in respect of the Demised Premises or the Common Elements, as the case may be, with statutorily required limits; workers’ compensation insurance shall include policy endorsements providing an extension of the policy to cover the liability of the insured under the “Other States Coverage”;

(f)         business automobile liability insurance covering liability arising out of any vehicle (including owned, non-owned, leased, rented and/or hired vehicles) insuring against liability for bodily injury, death and property damage in an amount not less than Five Million Dollars ($5,000,000) (as such sum shall be Adjusted for Inflation every five (5) years after the Commencement Date) each accident limit;

(g)        during the performance of any Alteration, builder’s risk completed value form insurance covering the perils insured under the ISO special causes of loss form, including collapse, water damage, transit, flood (subject to Section 10.1(i) hereof) or equivalent coverage under Tenant’s “all risk” policy and, to the extent available at commercially reasonable rates, earth movement coverage, with deductible reasonably approved by any Recognized Mortgagee (and, if none, by Landlord), in nonreporting form, covering the total value of work performed and equipment, supplies and materials furnished (with an appropriate limit for soft costs in the case of construction) and covering the full insurable value (exclusive of the cost of noninsurable items, such as excavation, foundations and footings) of all equipment, supplies and materials at any off-site storage location used with respect to the Demised Premises or the Common Elements, as the case may be, (subject to the foregoing qualification with respect to earthquake insurance) and subject to commercially reasonable deductibles reasonably approved by Landlord;

(h)        during the performance of any Alteration, commercial general liability insurance, as required in Section 10.1(b) hereof, in an amount of not less than $100,000,000 per occurrence and in the aggregate;

(i)         flood insurance, if the Improvements or any part thereof is located in an area identified by the Secretary of Housing and Urban Development, or any successor thereto, as an area having special flood hazards and in which flood insurance has been made available and to the maximum extent available under the national Flood Insurance Act of 1968, as amended;

(j)         pollution liability insurance with limits of not less than Five Million Dollars ($5,000,000) (as such sum shall be Adjusted for Inflation from the Commencement Date) per occurrence and in the aggregate with a deductible of no more than $1,000,000 (as such sum shall be Adjusted for Inflation from the date hereof), providing coverage for bodily injury or property damage arising from, or cleanup of, actual, alleged or threatened emission, discharge,

73

dispersal, seepage, release or escape of Hazardous Materials from, on, under, in or onto the Demised Premises or the Common Elements, as the case may be, including any loss, cost or expense incurred as a result of the investigation, settlement or defense of any claim, suit, or proceedings against Landlord, including the payment of any monetary awards of compensatory damages, arising from any such occurrence;

(k)        insurance to keep all glass in the Demised Premises and the Common Elements, as the case may be, and in the perimeter and demising walls thereof, and the frames for such glass, insured against damage (including temporary repairs) subject to commercially reasonable deductibles reasonably approved by Landlord;

(l)         while any of the Improvements located in the Demised Premises or the Common Elements or any portions thereof are being removed, in transit or at an off-site location, trip transit, installation floater and bailee floater insurance (or any substitute form providing equivalent coverage) covering the perils insured under the ISO special causes of loss form, including collapse, water damage, transit, flood (subject to Section 10.1(i) hereof), and, to the extent available at commercially reasonable rates, earth movement coverage, with deductible reasonably approved by any Recognized Mortgagee (and if none, by Landlord), in nonreporting form, covering the Full Insurable Value of such Improvements; and

(m)       such other insurance and in such amounts as may from time to time be then customarily carried by owners of comparable Class “A” office buildings (as understood on the date hereof) in midtown Manhattan.

Section 10.2  Requirements for Policies. All insurance provided for in this Article X (and in any other provision of this Lease) shall:

(a)        be effected under standard form policies issued by insurers of recognized responsibility, authorized to do business in the State of New York, which are rated no less than “A-/VII” in the then current edition of Best’s Insurance Report (or the then equivalent of such rating); provided, however, that insurers providing coverage in excess of the amounts required by Section 10.1 hereof may have a lower rating than the rating indicated in this Section 10.2(a) so long as any such insurers providing such excess coverage and having a lower rating than is required by the first clause of this Section 10.2(a) are not treated as “co-insurers” hereunder of the amounts set forth in Section 10.1 hereof;

(b)        as to any policies of insurance of the character described in Sections 10.1(a), 10.1(c), 10.1(d), 10.1(g), 10.1(i), 10.1(j), 10.1(k), 10.1(1) and 10.1(m) hereof (if applicable), expressly provide that any losses thereunder, subject to Section 10.6 hereof, in respect of losses arising in respect of the Common Elements, shall be adjusted with Landlord and the Condominium Association. All such insurance shall be carried in the name of Tenant or an applicable Subtenant and shall name the Landlord, other Public Parties and any property managers retained by Landlord as additional insureds thereunder. Any loss thereunder shall be made payable to Landlord (provided that if Depositary has been appointed to receive such funds, then to such Depositary), and Tenant, as their respective interests may appear; and

74

(c)        to the extent obtainable, contain an agreement by the insurer that such policy shall not be cancelled or materially altered to reduce the amount or the extent of any coverage afforded thereunder without at least thirty (30) days’ prior written notice to Landlord, and shall provide that any loss otherwise payable thereunder shall be payable notwithstanding any act or negligence of Landlord or Tenant which might, absent such agreement, result in a forfeiture of all or part of the payment of such loss.

Section 10.3  Waiver of Subrogation.

(a)        Waiver of Subrogation. Each of the parties hereto shall include in each of its policies insuring against loss, damage or destruction by fire or other insured casualty relating to the Demised Premises and/or the Common Elements a waiver of the insurer’s right of subrogation against the other party hereto, or, if such waiver is unobtainable (i) an express agreement that such policy shall not be invalidated if Tenant waives or has waived before the casualty the right of recovery against the other party hereto or (ii) any other form of permission for the release of the other party hereto, provided such waiver, agreement or permission is obtainable under normal commercial insurance practice at the time. If such waiver, agreement or permission shall not be, or shall cease to be, obtainable without additional charge or at all, the party hereto shall so notify the other party hereto promptly after notice thereof. If the other party hereto shall agree in writing to pay the insurer’s additional charge therefor, such waiver, agreement or permission shall (if obtainable) be included in the policy.

(b)        Waiver of Right of Recovery. As long as the insurance policies of each party hereto include the waiver of subrogation or agreement or permission to release liability referred to in Section 10.3(a) hereof, such party, to the extent that such insurance is in force and collectible, hereby waives, for itself and those claiming through and under it, any right of recovery against the other party hereto and its agents for any loss occasioned by fire or other insured casualty. If at any time any insurance policies of any party hereto shall not include such or similar provisions, the waivers set forth in the immediately preceding sentence shall be of no further force or effect.

Section 10.4  Delivery of Policies.

(a)        Original Policies. As of the Lease Assignment Date and thereafter not less than thirty (30) days prior to the expiration dates of the expiring policies theretofore furnished pursuant to this Article X, Tenant shall deliver to Landlord a certified copy of the policies required by this Article X or insurance certificates (in forms reasonably acceptable to Landlord) binding the insurer certifying the issuance of such policies, bearing notations evidencing the payment of premiums or accompanied by other evidence reasonably satisfactory to Landlord of such payment, or certificates evidencing same.

(b)        Insurer Certification. Tenant shall, upon the written request of Landlord, obtain and deliver to Landlord, within twenty (20) Business Days after the date of any such request, a written certification from Tenant’s insurer or independent insurance agent describing in reasonable detail the insurance policies then being maintained by Tenant in accordance with the requirements of this Article X.

75

Section 10.5  Separate Insurance. Tenant shall not take out separate insurance concurrent in form or contributing in the event of loss with that required in this Article X to be furnished by, or which may reasonably be required to be furnished by, Tenant unless Landlord is included therein as an insured, with loss payable as in this Lease provided. Tenant shall immediately notify Landlord of the taking out of any such separate insurance and shall deliver the policy or policies as provided in Section 10.4 hereof.

Section 10.6  Cooperation; Adjustment. (a) Landlord and Tenant shall cooperate in connection with the collection of any insurance monies that may be due in the event of loss in respect of the Demised Premises, but the same shall be at the sole cost and expense of Tenant. If Tenant shall fail promptly and with due diligence to make claim for and use good faith efforts to collect any insurance monies that are so due, Landlord, upon twenty (20) Business Days prior written notice to Tenant, may make claim for and collect the same directly on behalf of and in the name of Landlord and Tenant. The aforesaid notice shall include the following, in boldface print: “In the event that Tenant fails to make a claim for and to collect insurance proceeds, as required in Section 10.6 of the Lease, and such failure continues for twenty (20) Business Days after delivery of this notice, Landlord shall be entitled to make such claim and collect such proceeds.” Landlord (in the event that claim in question is for an amount in excess of $5,000,000), Tenant and, if required by the terms of the applicable Recognized Mortgage, the Recognized Mortgagee most senior in lien, shall be entitled to participate in any negotiations with the insurer regarding the adjustment of claims for damage to the Demised Premises, and any settlement agreement shall be subject to the approval of Landlord (in the event that the claim in question is for an amount in excess of $5,000,000), Tenant and such Recognized Mortgagee, such approval not to be unreasonably withheld.

(b)        Landlord and the Condominium Association shall cooperate in connection with the collection of any insurance monies that may be due in the event of loss in respect of the Common Elements, but the same shall be at the sole cost and expense of Tenant. If Tenant shall fail promptly and with due diligence to make claim for and use good faith efforts to collect any insurance monies that are so due, Landlord, upon twenty (20) Business Days prior written notice to Tenant, may make claim for and collect the same directly on behalf of and in the name of Landlord and Tenant. The aforesaid notice shall include the following, in boldface print: “In the event that Tenant fails to make a claim for and to collect insurance proceeds, as required in Section 10.6 of the Lease, and such failure continues for twenty (20) Business Days after delivery of this notice, Landlord shall be entitled to make such claim and collect such proceeds.” Landlord (in the event that claim in question is for an amount in excess of $5,000,000), the Condominium Association and, if required by the terms of the applicable Recognized Mortgage, the Recognized Mortgagee most senior in lien, shall be entitled to participate in any negotiations with the insurer regarding the adjustment of claims for damage to the Common Elements, and any settlement agreement shall be subject to the approval of Landlord (in the event that the claim in question is for an amount in excess of $5,000,000), the Condominium Association and such Recognized Mortgagee, such approval not to be unreasonably withheld.

Section 10.7  Approval by Landlord. No approval by Landlord of any insurer shall be construed to be a representation, certification or warranty of such insurer’s solvency and no approval by Landlord as to the amount, type or form of any insurance shall be construed to be

76

a representation, certification or warranty of such insurance’s sufficiency. Tenant shall be solely responsible for covering the deductibles under the insurance policies provided hereunder regardless of whether Landlord has approved the amount of such deductibles.

Section 10.8  Depositary. Subject to Section 10.9 hereof, any loss under all policies required by any provision of this Lease insuring against damage to the Common Elements by fire or other casualty shall be payable to the Depositary, except that amounts of less than Three Hundred Fifty Thousand Dollars ($350,000) (as such sum shall be Adjusted for Inflation from the Commencement Date) shall be payable in trust directly to Tenant for application to the cost of Restoration in accordance with Article XI hereof. Any loss under any policies insuring against damage to any portion of the Demised Premises (exclusive of any portion of the Common Elements) or any personal property in the Demised Premises shall be payable to Tenant.

Section 10.9  Security for Commercial Property Insurance Premium.

(a)        As of the Lease Assignment Date, Tenant shall provide to Landlord a guaranty (the “Insurance Guaranty”), satisfactory to Landlord, by NYTC, of Tenant’s Obligations under Section 10.1(a) hereof, guarantying such obligations up to $75,000.00 (the “Security Deposit”). If on the fifth anniversary of the Commencement Date, Tenant shall have fully performed its obligations under Section 10.1(a) hereof, Landlord shall reduce the maximum liability under the Insurance Guaranty to $37,500. The Security Deposit shall be Adjusted for Inflation once every five (5) years beginning on the tenth anniversary of the Commencement Date; provided, however, if prior to the fifth anniversary of the Commencement Date Landlord shall have sent notice to Tenant that Tenant is or has ever been in default of the provisions of this Section 10.9, the amount of the Security Deposit shall be Adjusted for Inflation once every five (5) years beginning on the fifth anniversary of the Commencement Date.

(b)        [INTENTIONALLY OMITTED]

(c)        If Tenant defaults in the full and prompt payment and performance of any of Tenant’s covenants or obligations under Section 10.4(a) hereof in respect of the policies to be maintained under Section 10.1(a) hereof, Landlord may use, apply or retain the whole or any part of the Security Deposit and the interest accrued thereon, if any, to the extent required for the payment of any insurance premium required to meet Tenant’s obligations under Section 10.1(a) hereof. If Landlord shall so use, apply or retain the whole or any part of the Security Deposit and the interest accrued thereon, Tenant shall upon demand immediately deposit with Landlord a sum equal to the amount so used, applied or retained. If Tenant shall fully and faithfully comply with all of Tenant’s obligations under Section 10.4(a) hereof in respect of the policies to be maintained under Section 10.1(a) hereof, the Security Deposit (including interest thereon) or any balance thereof, shall be returned or paid over to Tenant after the date on which this Lease shall expire or sooner end or terminate, and after delivery to Landlord of entire possession of the Demised Premises. In the event of any sale of Landlord’s interest in the Lease, Landlord shall have the right to assign its interest in the Security Deposit to the transferee or assignee and Landlord shall thereupon be released by Tenant from all liability for the return or payment thereof; and Tenant shall look solely to the new landlord for the return or payment of the same;

77

and the provisions hereof shall apply to every transfer or assignment made of the same to a new landlord. Tenant shall not assign or encumber or attempt to assign or encumber the Security Deposit and neither Landlord nor its successors or assigns shall be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance.

78

ARTICLE XI
DAMAGE AND DESTRUCTION

Section 11.1 Damage and Destruction.

(a)    Restoration. If, at any time during the term of this Lease, all or any part of the Common Elements or any portion thereof shall be destroyed or damaged in whole or in part by fire or other casualty (including any casualty for which insurance was not obtained or obtainable) of any kind or nature, ordinary or extraordinary, foreseen or unforeseen (each, a “Casualty”), Tenant shall: (i) give to Landlord immediate notice thereof, except that no notice shall be required if the estimated cost of repairs, restorations, replacements and rebuilding, including temporary repairs or the protection of other property pending the completion of any repair, restoration, replacement or rebuilding thereof (collectively, “Restoration”) shall be less than One Hundred Thousand Dollars ($100,000.00); (ii) file all required documents and instruments with its insurers, and make such claims with its insurers as shall be necessary or advisable; and (iii) take such steps as shall be necessary or advisable to preserve any undamaged portion of the Common Elements and to insure that the portions of the Common Elements that are accessible to the public shall be safe and free from conditions hazardous to life and property. Subject to Section 11.1(g) hereof, Tenant shall, whether or not such Casualty shall have been insured, and whether or not insurance proceeds, if any, shall be sufficient for the purpose of such Restoration, diligently and with continuity (subject to Unavoidable Delays and commercially reasonable standards) repair, alter, restore, replace and rebuild (collectively, “Restore”) the Common Elements, as nearly as possible to the condition, quality and class of the Common Elements existing immediately prior to such occurrence (using materials, equipment and construction techniques which are common at the time of the damage or destruction), with such Alterations as Tenant (or the Condominium Association), with the consent of Landlord in accordance with the standards of review set forth in Article IX hereof, shall elect to make, provided that after Restoration, the Common Elements is in substantial conformity with the applicable Final Plans and Specifications and in compliance with the DUO. Each Restoration shall be performed in accordance with the provisions of this Article XI and the provisions of Article IX hereof as if such Restoration were an “Alteration” thereunder. In any case where this Lease shall expire or be terminated prior to the completion of a Restoration other than in connection with the exercise of the Purchase Option, Tenant shall account to Landlord for all amounts spent in connection with any Restoration which was undertaken and shall pay over to Landlord, within ten (10) days after demand, the remainder, if any, of the Restoration Funds previously received by it. Notwithstanding the foregoing, if a Casualty occurs during the last three (3) years of the term of this Lease and the Restoration is estimated pursuant to Section 10.1(d) hereof to require six (6) months or longer after receipt of the insurance proceeds to complete, Tenant shall have the right to terminate this Lease by giving notice to Landlord to such effect no later than ninety (90) days after the occurrence of such fire or other casualty. In the event Tenant gives such notice, this Lease shall be deemed cancelled and terminated as of the date of the giving of such notice as if such date were the Scheduled Expiration Date, and neither party shall have any further rights or Obligations hereunder except such rights and Obligations which by their express terms survive the termination of this Lease.

(b)    Non-Conforming Restoration. If Tenant proposes a Restoration which does not conform to the condition, quality or class of the Common Elements as they existed

79

immediately prior to the damage or destruction and such non-conformity would affect any element of the DUO (i.e., if the Restoration would result in any element of the Demised Premises or the Common Elements subject to the requirements of the DUO not being in substantially the same condition after the Restoration as it was immediately prior to the Casualty) or affects a Structural Component (other than by having a Nonadverse Structural Effect), Tenant shall give Landlord notice of such proposed nonconformity, and Landlord shall review and approve or disapprove such Alteration in accordance with (i) the standard of review and time periods applicable to a Major Alteration under Section 9.5(a) hereof and (ii) the applicable portions of the DUO. If Landlord disapproves such Alteration, Landlord’s notice of disapproval shall state, in reasonable detail, the grounds for such disapproval.

(c)    Commencement and Completion of Restoration. Subject to Unavoidable Delays and to the applicable provisions of the Site 8 South Subway Agreement, Tenant shall commence the Restoration within one hundred eighty (180) days after the date of the occurrence of the applicable damage or destruction; provided, however, that if Tenant’s Recognized Mortgagee, together with all Recognized Mortgagees under the other Severance Subleases, allow Tenant to commence Restoration within a longer period, but not greater than one (1) year after the date of occurrence of the applicable damage or destruction, then Tenant shall be permitted to commence the Restoration required hereunder within one year after the date of such occurrence. Once commenced, Tenant shall diligently and continuously prosecute any such Restoration to completion.

(d)    Restoration Estimate. Tenant shall, within ninety (90) days (or such longer period as is permitted by Tenant’s Recognized Mortgagee, together with all Recognized Mortgagees under the other Severance Subleases, not to exceed one hundred eighty (180) days) after the occurrence of damage or destruction to the Common Elements, deliver to Landlord a statement (the “Initial Restoration Estimate”) prepared by an Architect or an Engineer, approved (or deemed approved) by Landlord pursuant to Section 9.6(a)(ii) hereof, setting forth such Person’s estimate as to the time required to perform the Restoration and the estimated cost of the Restoration. Landlord, at Tenant’s expense, may engage a registered architect or a licensed professional engineer to prepare its own Initial Restoration Estimate, and Tenant shall reimburse Landlord for such expense within ten (10) Business Days after demand therefor by Landlord.

(e)    Landlord’s Rights. Landlord in no event shall be obligated to Restore the Improvements or any portion thereof or to pay any of the costs or expenses thereof. If Tenant shall fail or neglect to diligently Restore (subject to Unavoidable Delays) the Common Elements or the portion thereof so damaged or destroyed, or having so commenced such Restoration, shall fail to diligently and continuously complete the same in accordance with the terms of this Lease and any such failure shall continue for twenty (20) Business Days after written notice to Tenant specifying such failure in reasonable detail, or if prior to the completion of any such Restoration by Tenant, this Lease shall expire or be terminated for any reason (other than the acquisition of fee title by Tenant), then Depositary shall not make any payment of Restoration Funds to Tenant or the Condominium Association, as the case may be, hereunder and shall pay any such Restoration Funds to Landlord who may retain such Restoration Funds without any claim on the part of Tenant or the Condominium Association, as the case may be, thereto and shall apply such Restoration Funds in any order Landlord may elect but only toward the payment of the cost of

80

the Restoration or the payment of any Charges or other sums due and owing to Landlord hereunder.

(f)     Additional Restoration Requirements. If the estimated cost of any Restoration required by the terms of this Article XI is equal to or greater than Three Hundred Fifty Thousand Dollars ($350,000) and exceeds the Restoration Funds available for such Restoration, then, prior to the commencement of such Restoration or thereafter if it is determined that the cost to complete such Restoration exceeds the unapplied portion of such Restoration Funds, Tenant shall deposit with Depositary a bond, cash, Letter of Credit or other security reasonably satisfactory to Landlord in the amount of such excess (it being agreed that an acceptable guaranty of an Acceptable Guarantor shall be reasonably acceptable to Landlord for the purpose of this Section 11.1(f) so long as the estimated cost of Restoration is less than or equal to $10,000,000), to be held and applied by Depositary in accordance with the provisions of Section 11.3 hereof, as security for the completion of such Restoration in accordance with this Article XI.

(g)    Purchase Option. At any time from and after the tenth (10th) anniversary of the Delivery Date, in the event of a Substantial Casualty, Tenant may exercise the Purchase Option in accordance with Article V hereof. In the event Tenant does (and all of the other tenants under the Severance Subleases do) so exercise the Purchase Option, neither Tenant nor the Condominium Association shall be required to Restore hereunder and Landlord shall be deemed to have waived any of Landlord’s interest in any Casualty insurance proceeds as set forth in Section 5.2 hereof (and Landlord shall confirm such waiver in writing to Tenant within ten (10) days of Tenant’s request for such waiver).

(h)    Survival. Tenant’s obligations under this Section 11.1 shall survive the expiration or earlier termination of this Lease.

Section 11.2  Restoration Funds.

(a)    Payment to Depositary. Subject to the provisions of Section 11.3 hereof, Depositary shall pay over to the Condominium Association from time to time, upon the following terms, any monies which may be received by Depositary from insurance obtained or maintained by or for the benefit of Tenant or the Condominium Association, as the case may be, for the Restoration (other than rent insurance and except as set forth in the last sentence of Section 10.8 hereof) (the “Restoration Funds”); provided, however, that Depositary, before paying such monies over to the Condominium Association or Tenant (in the case of amounts payable pursuant to Section 10.8 hereof) shall be entitled to reimburse itself, Tenant, the Condominium Association and Landlord therefrom to the extent, if any, of the necessary, reasonable and proper expenses (including reasonable attorneys’ fees) paid or incurred by each of the foregoing in the collection of such monies. If the Restoration Funds are Three Hundred Fifty Thousand Dollars ($350,000) or less, the same shall be paid directly to the Condominium Association in trust for the Restoration. If the Restoration Funds are more than Three Hundred Fifty Thousand Dollars ($350,000), Depositary shall pay to the Condominium Association, in the manner provided in this Section 11.2 and Section 11.3 hereof, the Restoration Funds for the Restoration. If the net Restoration Funds after payment of the aforementioned expenses of collection shall be insufficient to pay the entire cost of the Restoration, as determined in

81

accordance with Section 11.1(d) hereof, the Tenant shall cause the Condominium Association to deposit the amount of such shortfall with Depositary to be held and disbursed by Depositary in the same manner as the other Restoration Funds.

(b)    Retainage of Restoration Funds. Subject to the provisions of Section 11.3 hereof and to any provisions of the Recognized Mortgage most senior in lien setting forth additional, more stringent conditions for the disbursement of the Restoration Funds or the retainage of Restoration Funds not inconsistent herewith, the Restoration Funds shall be paid to the Condominium Association in installments as the Restoration progresses, less retainage equal to ten percent (10%) until fifty percent (50%) of such Restoration is completed, and five percent (5%) until such Restoration is fully completed, upon application to be submitted by the Condominium Association, to Depositary and Landlord showing the cost of labor and materials (i) purchased and delivered to the Property for incorporation in such Restoration and that such materials have been insured by the Condominium Association (including insurance against vandalism, theft, malicious mischief and the like) for one hundred percent (100%) of the cost thereof and stored at a reasonably secure and safe location at the Property, or (ii) incorporated therein since the last previous application, and due and payable or paid by the Condominium Association. The Depositary shall release that portion of the retainage applicable to each trade upon completion by such trade of its portion of such Restoration. If any vendor’s, mechanic’s, laborer’s or materialman’s lien is filed against the Property or any part thereof, or if any public improvement lien relating to the Restoration is created or permitted to be created by Tenant or the Condominium Association, as the case may be, and is filed against Landlord, or any assets of Landlord, and if such lien is not satisfied or discharged (by bonding or otherwise) within forty- five (45) days after filing of the lien, the Condominium Association shall not be entitled to receive any further installment until such lien is satisfied or discharged (by bonding or otherwise). Notwithstanding the foregoing, the existence of any such lien shall not preclude the Condominium Association from receiving any installment of Restoration Funds, provided such lien will be discharged with funds from such installment.

(c)    Balance of Funds. Upon receipt by Landlord of evidence satisfactory to it that the Restoration has been completed except to an immaterial extent and paid for in full and that there are no liens on the Property as a result thereof and upon compliance with any provisions of the Recognized Mortgage most senior in lien pursuant to Sections 11.2(b) and 11.3 hereof, the balance of the Restoration Funds shall be paid over to the Condominium Association. Landlord shall recognize any full or partial assignment by the Condominium Association to a Recognized Mortgagee of any portion of the Restoration Funds payable to the Condominium Association pursuant to the foregoing sentence.

(d)    Restoration by Landlord. If Landlord makes the Restoration at the Condominium Association’s expense, as provided in Section 11.1(e) hereof, then Depositary shall pay over the Restoration Funds to Landlord, upon request, to the extent not previously paid to the Condominium Association pursuant to this Section 11.2, and the Condominium Association shall pay to Landlord, within seven (7) Business Days after demand, any sums in excess of the portion of the Restoration Funds received by Landlord necessary to complete the Restoration. Upon completion of the Restoration, Landlord shall deliver to the Condominium Association a certificate setting forth the expenditures made by Landlord for such Restoration

82

and Landlord shall pay to the Condominium Association any amount of Restoration Funds received by Landlord in excess of the amount necessary to complete the Restoration.

Section 11.3  Conditions Precedent to Disbursement. The following shall be conditions precedent to the payment of each installment of Restoration Funds to the Condominium Association as provided in Section 11.2 hereof, together with any additional conditions imposed by the Recognized Mortgage most senior in lien which is required to or has agreed to make such Restoration Funds available for the cost of Restoration:

(a)    there shall be submitted to Depositary and Landlord the certificate of the aforesaid Architect or the aforesaid Engineer stating that (i) the sum then requested to be withdrawn either has been paid by the Condominium Association or is due and payable to contractors, subcontractors, materialmen, engineers, architects or other Persons (whose names and addresses shall be stated) who have rendered or furnished services or materials for the Restoration and giving a brief description of such services and materials and the principal subdivisions or categories thereof and the several amounts so paid or due to each of said Persons in respect thereof, and stating in reasonable detail the progress of the Restoration up to the date of said certificate, accompanied by invoices from any such contractors, subcontractors, materialmen, engineers, architects and other Persons, (ii) no part of such expenditures has been or is being made the basis, in any previous or then pending requisition, for the withdrawal of the Restoration Funds or has been made out of the Restoration Funds previously received by the Condominium Association (iii) the sum then requested does not exceed the value of the services and materials described in the certificate, (iv) the materials, fixtures and equipment for which payment is being requested are in accordance with the applicable plans and specifications and changes thereto, approved, to the extent required hereunder, by Landlord, (v) except in the case of the final request for payment by the Condominium Association the balance of the Restoration Funds held by Depositary, together with any additional funds provided by the Condominium Association to the Depositary, will be sufficient upon completion of the Restoration to pay for the same in full, and stating in reasonable detail an estimate of the cost of such completion, and (vi) in the case of the final request for payment by the Condominium Association the Restoration shall have been completed, substantially and in all material respects, in accordance with the provisions of Article IX hereof that are applicable to such Restoration;

(b)    there shall be furnished to Landlord an official search, or a certificate of a title insurance company reasonably satisfactory to Landlord, or other evidence reasonably satisfactory to Landlord, showing that there has not been filed any (i) vendor’s, mechanic’s, laborer’s or materialman’s statutory or other similar lien affecting the Common Elements or any part thereof, or any public improvement lien with respect to the Common Elements or the Restoration created or permitted to be created by Tenant or the Condominium Association, as the case may be, affecting Landlord, or the assets of Landlord which have not been satisfied or discharged of record (by bonding or otherwise) within forty-five (45) days after the filing of the lien except such as will be discharged upon payment of the requisite amount out of the sum then requested to be withdrawn, and (ii) other liens or encumbrances against the Property other than Permitted Encumbrances; and

(c)    Tenant or the Condominium Association, as the case may be, shall have delivered to Landlord and to Depositary waivers of mechanic’s liens with respect to all of the

83

Restoration, completed prior to the date of the payment application, on forms reasonably satisfactory to Landlord.

Section 11.4  Section 227 of Real Property Law. The provisions of this Article XI shall be deemed an express agreement governing any ease of damage or destruction of the Demised Premises and/or the Common Elements by fire or other casualty, and Section 227 of the Real Property Law of the State of New York, providing for such a contingency in the absence of an express agreement, and any other laws of like import, now or hereafter in force, shall have no application in such case and are hereby waived by the parties hereto.

Section 11.5  Additional Requirements for Restoration. The applicable provisions of Article IX hereof shall be applicable to any Restoration as if the same were an Alteration under such Article.

Section 11.6  Effect of Casualty on this Lease. This Lease shall neither terminate, be forfeited nor be affected in any manner, nor shall there be a reduction or abatement of Charges by reason of damage to, or total, substantial or partial destruction of, the Improvements, or by reason of the untenantability of the Improvements or any part thereof, nor for any reason or cause whatsoever, except pursuant to the express provisions of this Lease. Except as so provided, Tenant’s obligations hereunder, including the payment of Charges, shall continue as though the Improvements had not been damaged or destroyed and shall continue without abatement, suspension, diminution or reduction whatsoever.

84

ARTICLE XII
CONDEMNATION

Section 12.1  Condemnation.

(a)    Substantial Taking. If, at any time during the term of this Lease, the whole or Substantially All Of the Demised Premises and/or the Common Elements shall be the subject of a Taking, by any lawful power or authority by the exercise of the right of condemnation or eminent domain or by agreement among Landlord, Tenant and those authorized to exercise such right then, (i) if such taking occurs after the tenth anniversary of the Delivery Date, Tenant may exercise the Purchase Option pursuant to the provisions of Article V hereof (and thereupon relinquish forever its right to be subject to the DUO and receive the correlative benefits thereof), or (ii) if Tenant does not so exercise the Purchase Option or if the same is not then exercisable by Tenant hereunder, this Lease and the term of this Lease shall terminate and expire on the date of such Taking. The term “Substantially All Of” shall be deemed to mean such portion of the Demised Premises and/or the Common Elements as, when so taken, in Tenant’s reasonable judgment, would leave remaining a balance of the Demised Premises and/or the Common Elements which, due either to the area so taken or the location of the part so taken in relation to the part not so taken, would not under economic conditions, applicable zoning laws or building regulations then existing or prevailing, and after performance by Tenant of all covenants, agreements, terms and provisions contained herein or by Legal Requirements required to be observed or performed by Tenant, readily accommodate premises of a nature similar to the Demised Premises and capable of producing a proportionately (i.e., proportional to the Rentable Square Feet not so taken) fair and reasonable net annual income or capable of supporting substantially similar activities as the Demised Premises.

(b)    Substantial Taking; Award. If the whole or Substantially All Of the Demised Premises shall be taken as provided in this Article XII, then the condemnation award related thereto shall be paid to Tenant, subject to the rights of any Recognized Mortgagees. If the whole or Substantially All Of the Common Elements shall be taken as provided in this Article XII, then the condemnation award related thereto shall be paid to the Condominium Association.

Section 12.2  Date of Taking. For purposes of this Article XII, the “date of Taking” shall be deemed to be the earlier of: (a) the date on which actual possession of the whole or Substantially All Of the Demised Premises and/or the Common Elements, or a part thereof, as the case may be, is acquired by any lawful power or authority pursuant to the provisions of the applicable federal or New York State law; and (b) the date on which title to the Demised Premises and/or the Common Elements or the aforesaid portion thereof shall have vested in any lawful power or authority pursuant to the provisions of the applicable federal or New York State law.

Section 12.3  Minor Taking; Condemnation Restoration.

(a)    Condemnation Restoration. If less than Substantially All Of the Demised Premises and/or the Common Elements shall be taken as provided in this Article XII, then (i) if such taking involves a portion of the Demised Premises and/or the Common Elements valued at

85

greater than Five Million Dollars ($5,000,000) and occurs after the tenth anniversary of the Delivery Date, Tenant may exercise the Purchase Option pursuant to the provisions of Article V hereof, or (ii) if Tenant does not so exercise or is not then permitted to so exercise hereunder, this Lease and the term hereof shall continue with a proportionate abatement (based on the ratio of the value of the portion of the Demised Premises and/or the Common Elements so taken to the value of the entire Demised Premises and/or the Common Elements immediately prior to such taking) of the Charges and no other diminution of any of Tenant’s Obligations hereunder. Tenant, at its sole cost and expense, whether or not the award or awards, if any, shall be sufficient for the purpose and whether or not the Recognized Mortgagees shall permit the award or awards to be used for the restoration of the Demised Premises and/or the Common Elements, shall diligently (subject to Unavoidable Delays) restore any remaining part of Demised Premises and/or the Common Elements not so taken so that the latter shall be complete, rentable, self-contained architectural units in good condition and repair with such Alterations as Tenant, with the consent of Landlord, shall elect to make (such work, a “Condemnation Restoration”), provided that, after the completion of the Condemnation Restoration, the Demised Premises and/or Common Elements are in substantial conformity with the applicable Final Plans and Specifications and in compliance with the DUO, to the extent practicable, taking into account the nature and extent of the Taking. Provided that the condemnation award is made available to Tenant or the Condominium Association, Tenant shall commence the Condemnation Restoration within one hundred eighty (180) days of the date of the Taking and shall diligently and continuously prosecute such Condemnation Restoration to completion. In the event of any Taking of the nature described in this Section 12.3(a), the entire award for or attributable to the (A) Demised Premises, shall be paid to Tenant without deduction for any estate vested in Tenant by this Lease, and (B) the Common Elements, shall be paid to the Condominium Association, without deduction for any estate vested in Tenant by this Lease.

(b)    Restoration Funds. Subject to the provisions and limitations in this Article XII, Depositary shall make available to Tenant (in respect of a Taking of the Demised Premises) and to the Condominium Association (in respect of a Taking of the Common Elements) as much of that portion of the condemnation award actually received and held by Depositary, if any, less all reasonable expenses paid or incurred by Depositary, Tenant, the Condominium Association and Landlord in connection with the condemnation proceedings, as may be necessary to pay the cost of Condemnation Restoration of the part of the Demised Premises and/or Common Elements remaining. Such Condemnation Restoration, the estimated cost thereof, the payments to Tenant or to the Condominium Association, as the case may be on account of the cost thereof, Landlord’s right to perform the same, Tenant’s obligation with respect to condemnation proceeds held by it, and any additional conditions imposed by the Recognized Mortgage most senior in lien, shall be done, determined, made and governed in accordance with and subject to the provisions of Articles IX and XI hereof as if such amounts were “Restoration Funds” thereunder. Payments to Tenant or the Condominium Association, as the case may be, as aforesaid shall be disbursed in the manner set forth in Sections 11.2(b) and 11.3 hereof. Any balance of the award held by Depositary and any cash and the proceeds of any security deposited with Depositary pursuant to Section 12.4 hereof remaining after completion of the Condemnation Restoration shall be paid to Tenant, or the Condominium Association, as the case may be, subject to the rights of Recognized Mortgagees. Each of the parties agrees to execute and deliver any and all documents that may be reasonably required in order to facilitate collection of the awards. If the portion of the award made available by Depositary, as aforesaid,

86

is insufficient for the purpose of paying for the Condemnation Restoration, Tenant or the Condominium Association, as the case may be, shall nevertheless be required to make the Condemnation Restoration and pay any additional sums required for the Condemnation Restoration. Tenant’s or the Condominium Association’s, as the case may be, failure to supply the amount of any such deficiency within twenty (20) Business Days from demand of Landlord shall constitute a default hereunder (it being acknowledged and agreed that if such failure occurs after the tenth anniversary of the Delivery Date, Tenant will, in such circumstance, be deemed to have exercised the Purchase Option). If any portion of the condemnation award being used as Restoration Funds remains unused after the completion of the applicable Condemnation Restoration, the Depositary shall disburse such monies to Tenant or the Condominium Association, as the case may be, subject to the rights of the Recognized Mortgagees.

(c)    Performance of Condemnation Restoration. Tenant shall, within ninety (90) days after the occurrence of any Taking pursuant to this Section 12.3, deliver to Landlord a statement (the “Initial Taking Estimate”) prepared by an Architect or an Engineer, selected by Tenant and approved (or deemed approved) by Landlord pursuant to Section 9.6(a)(ii) hereof, setting forth such Person’s estimate as to the time required to perform the Condemnation Restoration required by such Taking and the estimated cost of such Condemnation Restoration.

Section 12.4  Additional Restoration Requirements. If the estimated cost of any Condemnation Restoration exceeds the net condemnation award by an amount equal to the lesser of (a) ten percent (10%) of the estimated cost of such Condemnation Restoration and (b) $1,000,000, then, prior to the commencement of such Condemnation Restoration or thereafter if it is determined that the cost to complete the Condemnation Restoration exceeds the unapplied portion of such award, Tenant shall deposit with Depositary a bond, cash, Letter of Credit or other security reasonably satisfactory to Landlord in the amount of such excess, to be held and applied by Depositary in accordance with the provisions of Section 12.3 hereof, as security for the completion of the Condemnation Restoration in accordance with this Article XII.

Section 12.5  Temporary Taking. If the temporary use of the whole or any part of the Demised Premises and/or the Common Elements shall be taken at any time during the term of this Lease for any public or quasi-public purpose by any lawful power or authority by the exercise of the right of condemnation or eminent domain or by agreement between Tenant and those authorized to exercise such right, Tenant shall give prompt notice thereof to Landlord and of this Lease shall not be reduced or affected in any way and Tenant shall continue to pay in full the Charges payable by Tenant hereunder applicable to any period during the term of this Lease without reduction or abatement, and Tenant shall be entitled to receive for itself any award or payments for such use.

Section 12.6  Right to Compensation. In case of any governmental action, not resulting in the Taking of any portion of the Demised Premises and/or the Common Elements but creating a right to compensation therefor, such as the changing of the grade or any street upon which the Improvements abut, then, except as otherwise provided in Section 12.1 hereof, this Lease shall continue in full force and effect without reduction or abatement of Charges. The award made in connection therewith, in respect only of PA Retail Space: (a) shall be paid to Tenant and included in Adjusted Gross Revenues if such act is equivalent to a temporary Taking;

87

and (b) shall not included in Adjusted Gross Revenues if such act is equivalent to a permanent Taking, in which event such award shall be used as provided in Section 12.3 hereof.

Section 12.7  Settlement; Compromise. Landlord shall not settle or compromise any Taking or other governmental action creating a right to compensation in Tenant as provided in this Article XII, and any such right to settle or compromise shall be solely exercisable by Tenant or a Recognized Mortgagee.

88

ARTICLE XIII
ASSIGNMENT, SUBLETTING AND TRANSFER

Section 13.1  Transfers Generally.

(a)    Transfers by Tenant. Except as otherwise provided herein, Tenant shall not, without the prior written consent of Landlord, which consent may be withheld by Landlord in its sole discretion, assign, mortgage, encumber or transfer its interest in this Lease or any of Tenant’s rights or Obligations hereunder, by Tenant’s action, by operation of law or otherwise, nor sublet, or permit the subletting of, the Demised Premises or the Common Elements or any portion thereof, nor enter into any franchise, concession, license or other occupancy agreement, or grant any franchise, concession, license or other occupancy rights with respect to the Demised Premises or the Common Elements or any portion thereof (any of the foregoing, a “Transfer”). Notwithstanding the foregoing, Tenant may, subject to the provisions of this Article XIII:

(i)          mortgage its interest in the Lease and the leasehold estate in the Demised Premises and the Common Elements created hereby to one or more Recognized Mortgagees in accordance with Article XXXIII hereof;

(ii)         [INTENTIONALLY OMITTED];

(iii)        make a Transfer to any Permitted Transferee (including, without limitation, a deemed Transfer pursuant to Section 13.1(b) hereof) or Permitted Developer;

(iv)       Transfer interests in Tenant for the purpose of obtaining financing for the Demised Premises or the Common Elements;

(v)        sublet portions of the Demised Premises or the Common Elements in accordance with Section 13.2 hereof;

(vi)       [INTENTIONALLY OMITTED];

(vii)      [INTENTIONALLY OMITTED];

(viii)     [INTENTIONALLY OMITTED]; and

(ix)        make a Transfer in accordance with Section 13.11 hereof.

(b)    Equity Interest Transfers. For purposes of this Section 13.1: (i) the issuance, assignment, transfer or other disposition of any direct or indirect equity interest in Tenant (whether stock, partnership interests, interests in a limited liability company or otherwise) to any Person or group of related Persons, whether in a single transaction or a series of related or unrelated transactions, in such quantities that after such issuance, assignment, transfer or other disposition Control of Tenant, directly or indirectly, shall have changed, shall be deemed a Transfer; (ii) the entering into by Tenant of a take-over agreement shall be deemed a Transfer; and (iii) any Person or legal representative of Tenant to whom Tenant’s interest under this Lease or the applicable Sublease passes by operation of law, or otherwise, shall be bound by the provisions of this Article XIII. Notwithstanding the foregoing, a transfer of shares of any entity

89

which holds an interest in Tenant by Persons other than those deemed “insiders” within the meaning of the Securities Exchange Act of 1934, as amended, which transfer of shares is effected through the “over-the-counter market” or through any recognized stock exchange, shall not be deemed a Transfer.

(c)    Documentation. Tenant shall, at the written request of Landlord, promptly submit to Landlord such further documentation as Landlord may reasonably request with respect to any Transfer hereunder which does not require Landlord’s prior written consent and to evidence Tenant’s compliance with the provisions of this Section 13.1.

(d)    Equitable Relief. Tenant hereby acknowledges that Landlord may suffer irreparable harm by reason of a breach or threatened breach of the provisions of this Article XII, and, accordingly, in addition to any other remedy that Landlord may have under this Lease or as may be permitted by applicable law, Tenant agrees with Landlord that the seeking of injunctive relief is an appropriate remedy for such breach or threatened breach by Tenant.

(e)    Transfers Void. Any Transfer by Tenant or other party in contravention of this Article XIII shall be void and of no effect.

(f)     Notice to Landlord. In respect of any proposed Transfer that is subject to Landlord’s approval, Tenant shall give written notice thereof to Landlord, which notice shall set forth the name of the proposed transferee and such other information as is reasonably requested by Landlord so as to determine that the proposed Transfer is permitted hereunder.

(g)    Other Conditions. Notwithstanding any provision of this Article XIII to the contrary, Tenant shall not make any Transfer unless: (i) at the time of such proposed Transfer, a Default (noticed to Tenant as required hereunder and uncured) with respect to any monetary or material non-monetary obligation under this Lease shall not have occurred and be continuing (provided, however, that the condition set forth in this clause (i) shall not apply to Transfers permitted pursuant to Sections 13.1(a) and 13.1(b) hereof); and (ii) Tenant shall reimburse Landlord for all reasonable out-of-pocket costs and expenses incurred by Landlord, including reasonable legal fees and disbursements, in connection with its examination and review of such proposed Transfer.

(h)    [INTENTIONALLY OMITTED]

(i)     [INTENTIONALLY OMITTED]

Section 13.2  Subleasing.

(a)    Conditions to Sublease. The following conditions shall apply to any Sublease for the occupancy of space in the Demised Premises:

(i)            no monetary or material non-monetary Default and no Event of Default shall then exist;

(ii)           the Sublease shall specifically provide that the Sublease will be subject and subordinate to this Lease and to all matters to which this Lease is subject and

90

subordinate, and that in the event of any conflict between this Lease and the Sublease, this Lease will be controlling;

(iii)          no Sublease for Retail Space shall be for a purpose other than actual occupancy by the named Subtenant or any affiliates thereof or for the occupancy of concessionaires or licensees thereunder; provided, however, nothing in the foregoing shall prohibit underletting by such named Subtenant, pursuant to Subleases that comply with this Lease after a reasonable period of occupancy by such named Subtenant;

(iv)          each Sublease shall (A) specifically require that Subtenant shall comply with the provisions of Article IX of this Lease as those provisions pertain to Subtenant’s plans and specifications, (B) recite that it is for a Permitted Use and that the Subtenant agrees to be bound by the DUO, (C) contain a specific acknowledgment that such Subtenant has received a copy of and reviewed this Lease, the Ground Lease and the DUO and (D) with respect to a Sublease for Retail Space, shall incorporate in full the provisions of Section 3.13 hereof to the extent applicable to such Subtenant, including the rights and obligations of such Subtenant and Landlord (and the Comptroller) in respect of such Subtenant’s books of record and accounts;

(v)           the proposed Subtenant (and the Principals thereof if such proposed Subtenant is not publicly held) is not a Prohibited Person; and

(vi)          the subletting shall end no later than one (1) day before the Scheduled Expiration Date of this Lease.

(b)    Nondisturbance Agreement. So long as Tenant is not then in monetary or material non-monetary Default hereunder at the request of Tenant, Landlord shall enter into a nondisturbance, subordination and attornment agreement substantially in the form of Exhibit K attached hereto (a “Nondisturbance Agreement”) with each proposed Subtenant under a proposed Sublease with Tenant of all or any portion of the Demised Premises which meets the conditions set forth in clauses (i) or (ii) below, as applicable, and each of clauses (iii) through (vii) below.

(i)            As to proposed Subtenants of the Roof Top Garden Space:

(A)     the proposed Subtenant is of sufficient financial condition to perform the obligations under the proposed Sublease, taking into account any security deposit posted by the proposed Subtenant, and Landlord shall have been furnished with evidence reasonably satisfactory to Landlord of such financial condition, and

(B)     (1) the Rentable Square Feet of the Roof Top Garden Space demised by such Sublease is 10,000 or more, or

(2)           [a] the Rentable Square Feet demised by such Sublease is 5,000 or more, but less than 10,000, and [b] the Subtenant has expended or is obligated to expend at least $100.00 (Adjusted for Inflation from the Commencement Date) per square foot (exclusive of any allowance provided by the applicable landlord with respect to such improvements) on such Subtenant’s initial build out, or

91

(3)           [a] the Rentable Square Feet demised by such Sublease is 2,500 or more, but less than 5,000 and [b] the Subtenant has expended or is obligated to expend at least $200.00 (Adjusted for Inflation from the Commencement Date) per square foot (exclusive of any allowance provided by the applicable landlord with respect to such improvements) on such Subtenant’s initial build out.

(ii)           As to proposed Subtenants of Office Space:

(A)     [INTENTIONALLY OMITTED]; or

(B)     (1) the space demised by such Sublease is one-half of one full floor of Office Space or more (provided, however, that, with respect to a proposed sublease of less than a full floor of Office Space, Landlord’s obligation to enter into a Nondisturbance Agreement pursuant to this Section 13.2(b) shall apply only if Tenant shall supply to Landlord, together with Tenant’s Sublet Notice, evidence reasonably satisfactory to Landlord, that the space to be leased shall be regular in shape, reasonably accessible in a customary manner, rented at not less than fair market value and otherwise on terms that are commercially reasonable and customary in respect of similarly situated tenants of space of the size and quality to be demised under the proposed Sublease), and (2) the proposed Subtenant is of sufficient financial condition to perform the obligations under the proposed Sublease, taking into account any security deposit posted by the proposed Subtenant, and Landlord shall have been furnished with evidence reasonably satisfactory to Landlord of such financial condition. For the purposes of this clause (ii)(B), evidence of “fair market value” and “commercially reasonable and customary” terms may be provided by the opinion of two (2) or more disinterested real estate professionals, each having at least ten (10) years of experience in valuing or leasing commercial real estate in midtown Manhattan).

(iii)          The proposed Subtenant is not a Related Entity of Tenant (except as permitted in clause (ii)(A) of this Section 13.2(b)).

(iv)          The proposed Subtenant (and the Principals thereof if such proposed Subtenant is not publicly held) is not a Prohibited Person.

(v)           The proposed Sublease shall provide for no decrease in the amount of rent payable thereunder over the term of such Sublease except for customary abatements and offsets of rent.

(vi)          None of (A) the demise of the Demised Space (including any expansion space) under such Sublease, nor (B) the exclusive or prohibited use provisions thereof, conflict with [1] the demise under or [2] the exclusive or prohibited use provisions of, any other Sublease, and Tenant shall deliver to Landlord a certification to such effect signed by a Qualified Certifying Party of Tenant.

(vii)         The proposed Sublease contains terms that are commercially reasonable and customary in respect of similarly situated tenants of space of the size and quality to be demised under the proposed Sublease, and the rent and other amounts owed thereunder constitute not less than fair rental value for the space to be demised thereunder (for the purposes of this clause (vii), evidence of “commercially reasonable and customary” terms and “fair market

92

value” may be provided by the opinion of two (2) or more disinterested real estate professionals, each having at least ten (10) years of experience in valuing or leasing commercial real estate in midtown Manhattan).

For any Sublease by Tenant for which Tenant requests that Landlord enter into a Nondisturbance Agreement, Tenant shall give written notice thereof to Landlord (“Tenant’s Sublet Notice”) accompanied by a copy of the Sublease as fully executed or in executable form and such information as Landlord may require to determine whether the proposed Subtenant is a Prohibited Person. Tenant’s Sublet Notice shall contain the following information: the name of the proposed Subtenant, the portion of the Demised Premises to be sublet, the proposed term of the Sublease (including the effective date thereof), the proposed Sublease rental and such financial and other background, information with respect to the proposed Subtenant as is reasonably sufficient to allow Landlord to assess the financial condition, relevant experience, and all other material economic terms of the proposed Sublease (but only to the extent the same are conditions under this Section 13.2(b) to Landlord’s obligation to enter into a Nondisturbance Agreement). Landlord shall reasonably cooperate with Tenant after receiving Tenant’s Sublet Notice to expedite the granting of the applicable Nondisturbance Agreement. Disputes regarding this Section 13.2(b), may be referred to arbitration pursuant to Section 16.3 hereof.

(c)    Subtenant Attornment. Subject to any applicable Nondisturbance Agreement, every subletting hereunder is subject to the express condition, and by accepting a Sublease hereunder of all or any portion of the Demised Premises each Subtenant shall be conclusively deemed to have agreed, that if this Lease should be terminated prior to the Scheduled Expiration Date or if Landlord should succeed to Tenant’s estate in the Demised Premises, then, at Landlord’s election, to be exercised in Landlord’s sole judgment and discretion, the Subtenant shall attorn to and recognize Landlord as the Subtenant’s landlord under the Sublease, provided that Landlord shall not (i) be liable for any act or omission or negligence of Tenant under such Sublease, (ii) be subject to any counterclaim, offset or defense which theretofore accrued to such Subtenant against Tenant, (iii) be bound by any modification or amendment of such Sublease (unless such modification or amendment shall have been approved in writing by Landlord), (iv) be bound by any payment of rent or additional rent for more than one (1) month in advance (unless actually received by Landlord), (v) be obligated to perform any Alteration in the Demised Space, (vi) in the event of a Casualty, be obligated to repair or restore the Demised Premises or any portion thereof, (vii) in the event of a partial Taking, be obligated to repair or restore the Demised Premises or any part thereof (except that, in the event that Landlord receives Insurance Proceeds and determines not to restore in such circumstances, the Subtenant can terminate its Sublease), (viii) be obligated to make any payment to such Subtenant (other than any overpayment of rent made to Landlord), or (viii) be bound by any obligations which Landlord lacks the capacity or reasonable ability to perform. The Subtenant shall promptly execute and deliver any instrument Landlord may reasonably request to evidence such attornment. With respect to any Sublease for which Landlord has entered into a Nondisturbance Agreement, the foregoing provisions of this Section 13.2(c) shall be superseded by such Nondisturbance Agreement. Upon such a termination of this Lease, Tenant shall pay over to Landlord all sums held by Tenant for the benefit of Subtenants or as security under the provisions of then existing Subleases except if such termination of this Lease results from Tenant’s exercise of the Purchase Option.

93

(d)    Sublease Rent Requirements. Each permitted Sublease hereunder shall require the Subtenant thereunder to make, subject to the rights of any Recognized Mortgagee, all payments of rents, additional rents and other sums of money to Landlord upon the occurrence of a monetary or material nonmonetary Event of Default hereunder and notice from Landlord, and Landlord shall apply the said payments made to it, first, to retain all amounts that are due and payable to Landlord pursuant to this Lease, and second, to pay to Tenant all remaining amounts.

(e)    Enforcement of Subleases. Tenant shall diligently, continuously and in good faith, and in accordance with commercially reasonable practices, enforce the provisions of each Sublease, so that each Subtenant at all times remains in compliance with the DUO and permits no acts or omissions that adversely affect any Structural Component. If the breach of a Sublease by the Subtenant thereunder constitutes a material violation of the DUO or any other aspect of this Lease in respect of Structural Components, Tenant shall promptly commence and diligently prosecute any and all appropriate legal proceedings necessary to cause such Subtenant to cure such breach (“Eviction Proceeding”).

(f)     No Demise of Common Elements. Tenant covenants that it shall in no circumstances sublease, license or otherwise transfer its interest in any portion of the Common Elements to any other Person, except as such transfer may be expressly permitted hereunder (including, as permitted in Article XXXIV hereof).

Section 13.3  Assignments.

(a)    Assignee Obligated. Each and every assignee of this Lease, whether or not approved by Landlord and whether as assignee or as successor in interest to Tenant named herein or any subsequent assignee, including any purchaser of the Lease under a foreclosure of any Mortgage or other lien on this Lease, shall, in the case of an assignee of the Lease, immediately be and become and remain liable, for the payment of the Charges and other sums payable under this Lease, and for the due performance of all of Tenant’s Obligations under this Lease, in each case to the extent arising from and after the effective date of such assignment to the full end of this Lease, and each and every provision of this Lease applicable to Tenant shall also apply to and bind every such assignee and purchaser with the same force and effect as though such assignee or purchaser were Tenant named in this Lease. No Transfer to such assignee or to such purchaser shall be binding upon Landlord unless such assignee or purchaser shall deliver to Landlord a recordable instrument (i) agreeing to indemnify Landlord from and against any Claims for brokerage commissions, any Claims derived from Landlord’s granting its consent to such assignment in accordance with the terms hereof and any other Claims not derived from Landlord’s actions arising out of such assignment (provided, however, that this subclause (i) shall not apply with respect to a Transfer to a Recognized Mortgagee pursuant to a foreclosure of the applicable Recognized Mortgage) and (ii) subject to Article XXXI hereof, assuming the obligations of Tenant hereunder by said assignee or purchaser to such effect, but the failure or refusal of such assignee or purchaser to deliver such instrument shall not release or discharge such assignee or purchaser from its Obligations as above set forth.

(b)    Release of Assignor. Upon an assignment of this Lease in accordance with this Article XIII, the assignor shall have no further Obligations arising after the effective date of such assignment and Landlord shall confirm such release in a recordable instrument

94

promptly delivered to Tenant (but the failure of Landlord to deliver such confirmation shall not prevent such release from becoming effective); provided, however, the foregoing release shall not relieve assignor from any obligation accruing prior to the date of such assignment.

Section 13.4  Collect Charges from Assignee, Subtenant. If this Lease is assigned, whether or not in violation of the provisions of this Lease, Landlord may and is hereby empowered, subject to the rights of any Recognized Mortgagee, to collect the Charges and other sums payable to Landlord hereunder from the assignee and to enforce the Obligations of Tenant hereunder against such assignee. If the Demised Premises or any part thereof is sublet or is used by anyone other than Tenant, whether or not in violation of this Lease, Landlord may, after an Event of Default by Tenant and expiration of Tenant’s time to cure such Event of Default, if any, collect rent from the Subtenant or occupant. In either event, Landlord may apply the net amount collected to the Charges and other sums herein reserved or provided for, but no such assignment or subletting or collection nor any action to enforce the provisions of this Lease against any such assignee or Subtenant shall be deemed: (a) a waiver of the covenant herein against Transfer; (b) an acceptance of the assignee or Subtenant as a tenant under this Lease; or (c) a release of Tenant from the further performance of its Obligations hereunder.

Section 13.5  No Relief. Notwithstanding any provision to the contrary in this Lease and except as set forth in Section 13.3(b) hereof, the making of any Transfer, in whole or in part, whether or not with the consent of Landlord, shall not operate to relieve Tenant herein named from its Obligations under this Lease. In the event of any such permitted Transfer, except as provided in Section 13.3(b) hereof, Tenant herein named shall remain fully responsible and liable for the prompt payment of all Charges and other sums due hereunder and for the due performance and observance of all of Tenant’s Obligations under this Lease, to the full end of this Lease, whether or not there shall have been any prior termination of this Lease by summary proceedings or otherwise. Each permitted Sublease shall expressly be made subject to the provisions of this Lease and no permitted Transfer shall in any manner affect or reduce any of the obligations of Tenant hereunder.

Section 13.6  Consent. Any consent by Landlord herein contained or hereafter given to any Transfer shall be held to apply only to the specific Transfer hereby or thereby approved. No such consent shall be construed as a waiver of the duty of Tenant, or its successors or assigns, to obtain from Landlord a consent to any other or subsequent Transfer or as a modification or limitation of the right of Landlord with respect to the foregoing covenant by Tenant.

Section 13.7  Costs and Expenses. Subject to Section 13.1(g) hereof, Tenant covenants and agrees to pay all reasonable out-of-pocket costs and expenses (including reasonable attorneys’ fees and disbursements) incurred in connection with or arising out of the making of any Transfer, including costs related to Landlord’s review of any proposed Transfer and the documentation in connection therewith. Tenant agrees to pay any federal, state or local excise, transfer, recording or other tax or fee imposed upon or applicable to any such Transfer, and to indemnify Landlord from and against any such cost or expense. Tenant further agrees that any consent of Landlord required hereunder may be conditioned upon receipt by Landlord of reasonable evidence of the payment of any such cost or expense. The Obligations of Tenant

95

under this Section 13.7 (and all other obligations expressly stated to survive this Lease) shall survive the expiration or earlier termination of this Lease.

Section 13.8  Prohibited Persons. (a) Notwithstanding the foregoing provisions, in no event shall Tenant be permitted to make a Transfer to a Prohibited Person, nor shall any other Subtenant be permitted to assign its Sublease or sublet or otherwise grant occupancy rights with respect to its Demised Space or any portion thereof to a Prohibited Person.

(b)    Procedure for Determining Prohibited Person Status. If Tenant seeks to determine whether any Person subject to the restrictions in this Lease regarding Prohibited Persons is a Prohibited Person, Tenant may submit to Landlord the name of such Person and, except with respect to any Person that is publicly held, the name of each Principal of such Person, together with such completed questionnaires or forms as are standard for Landlord, the City or NYCEDC to request. Notwithstanding anything to the contrary contained in this Lease, any provision in this Lease prohibiting a Person from being a Prohibited Person shall also apply to the Principals of such Person unless such Person is a publicly traded entity. Within fifteen (15) Business Days after receipt of all such names and fully-completed questionnaires or forms, as applicable, Landlord shall notify Tenant of Landlord’s determination, which determination shall be limited to whether such Person (and any Principals thereof) is a Prohibited Person; provided, however, that Landlord will confirm whether any Person is a Prohibited Person promptly after receiving all of the information described in this Section 13.8(b). If Landlord fails to so notify Tenant within such fifteen-Business-Day period, then such Person shall be deemed not to be a Prohibited Person; provided, however, with respect to any proposed assignee of this Lease or any Sublease or any proposed Subtenant of the Property or any portion thereof, the following shall apply instead: If Landlord fails to so notify Tenant within such fifteen-Business-Day period, Tenant shall have the right to give Landlord a reminder notice, which reminder notice shall contain the following caption in bold and capitalized type:

YOU SHALL BE DEEMED TO HAVE DETERMINED THAT                      IS NOT A PROHIBITED PERSON IF YOU FAIL TO NOTIFY TENANT OF WHETHER SUCH PERSON IS A PROHIBITED PERSON WITHIN TEN (10) BUSINESS DAYS FROM THE DATE OF YOUR RECEIPT OF THIS NOTICE.

If Landlord fails to notify Tenant of whether such Person is a Prohibited Person within ten (10) Business Days after its receipt of such reminder notice, then such Person shall be deemed not to be a Prohibited Person.

Section 13.9  Constitutive Documents. Upon request by Landlord, Tenant shall deliver to Landlord any Constitutive Documents and any replacement, amendment, modification or termination (any such act, a “Modification”) of any Constitutive Documents to the extent reflecting any Transfer, together with such other information and evidence as shall be reasonably necessary and reasonably satisfactory to Landlord to confirm the composition and identity of Tenant (or any member of Tenant) and compliance with the requirements of this Article XIII. Tenant shall also deliver a certification by a Qualified Certifying Party of Tenant stating that nothing Tenant has not shown to Landlord will render the information that Tenant has shown to Landlord inaccurate or misleading.

96

Section 13.10  Permitted Disposition.

(a)    Indicted Party. If any grand jury impaneled by any federal or state court files an indictment with such court charging Tenant or any Principal of Tenant (such indicted Person, the “Indicted Party”) with having committed an intentional felony in connection with the Demised Premises, then Landlord shall convene a hearing (the “Hearing”) before a panel of three persons consisting of (i) the City’s Deputy Mayor for Finance and Economic Development, or a successor in function designated by the Mayor of the City, (ii) the President of NYCEDC, or a successor in function designated by the Mayor of the City, and (iii) the Corporation Counsel of the City, or their respective duly authorized designees who shall be disinterested senior officials of their respective department or NYCEDC, as the case may be (the “Hearing Officers”).

(b)    Hearing. The Hearing shall be held upon not less than fifteen (15) Business Days prior written notice to the Indicted Party and Tenant for the purpose of determining whether it is in the best interest of the City to require the Indicted Party to make a Permitted Disposition of its interest in this Lease or in Tenant, as the case may be, and, if the Indicted Party is a Principal of Tenant, resign from any directorship or office held by the Indicted Party in Tenant. At the Hearing, Tenant and the Indicted Party shall each have the opportunity to be represented by counsel and to make a presentation to the Hearing Officers orally and in writing. The Hearing Officers shall consider and address in reaching their determination (i) whether there is a direct nexus between the conduct charged and this Lease, (ii) the deleterious effect, if any, which a Permitted Disposition of the Indicted Party’s interest in this Lease or in Tenant, as the case may be, would have on the economic development interests of the City which this Lease is intended to promote and the deleterious effect, if any, such a Permitted Disposition would have on Tenant as a whole and (iii) any other relevant matters. The Hearing Officers shall render a decision in writing within twenty-three (23) Business Days after the last day of the Hearing and such decision shall set forth in reasonable detail the findings of the Hearing Officers. Landlord shall deliver a true copy of such decision to Tenant and the Indicted Party within four (4) Business Days after the date thereof. Such decision shall be final and subject to review by appropriate lawful means, unless (A) the indictment is amended in any material respect or (B) a new or superseding indictment is filed, the basis of which is materially different from the indictment as to which the Hearing has been held, in which case a new Hearing may be held. If the Hearing Officers decide by a majority vote that it is in the best interest of the City to require a Permitted Disposition by the Indicted Party, (1) the Indicted Party (if the Indicted Party is a Principal of Tenant) shall resign from any directorship or office held by the Indicted Party in Tenant within seven (7) Business Days after the date a true copy of such decision is delivered to it and (2) the Indicted Party shall make a Permitted Disposition of its interest in this Lease or in Tenant, as the case may be, within six (6) months after the date a true copy of such decision is delivered to it. If the Permitted Disposition is an Equity Interest Disposition or Assignment, the Indicted Party may receive the consideration for such Equity Interest Disposition or Assignment in installment payments, provided that such consideration (other than interest thereon) shall be for a sum certain and provided further that, except as otherwise provided below, following such Equity Interest Disposition or Assignment, the Indicted Party shall have no further interest in this Lease or Tenant, as the case may be, or in any profits therefrom. If the Hearing Officers do not determine by a majority vote that it is in the best interest of the City to require a Permitted Disposition by the Indicted Party, then neither the indictment nor any conviction arising

97

therefrom shall have any effect upon this Lease or the rights or obligations of the parties hereunder or thereunder.

(c)    Default. Any failure of (i) the Indicted Party to make a Permitted Disposition of its interest in this Lease or Tenant, as the case may be, and (if the Indicted Party is a Principal of Tenant) to resign from directorships or offices, as provided above, or (ii) the Person acting as a trustee to make a Permitted Disposition of the Indicted Party’s interest in this Lease or in Tenant, as the case may be, following a Conviction, within the time and in the manner provided hereunder, shall be deemed to be an Event of Default by Tenant hereunder.

(d)    Permitted Disposition. “Permitted Disposition” means any of the following (the choice among which, to the extent applicable, shall be at Tenant’s option): (i) the Assignment or Equity Interest Disposition of the Indicted Party’s interest in this Lease or Tenant, as the case may be, to any Person who is (A) not a Prohibited Person, (B) not a Related Entity or affiliate of the Indicted Party and (C) satisfactory to Landlord, applying the provisions of Section 13.2 hereof, and to the holder of the Recognized Mortgage most senior in lien (if required by the terms of such Recognized Mortgage); (ii) if the Indicted Party is not Tenant, the Equity Interest Disposition (or other transfer or relinquishment) of the Indicted Party’s interest in Tenant, to Tenant, any other partner(s) of Tenant or any other owners of direct or indirect ownership interests in Tenant; (iii) the giving of the Indicted Party’s interest in this Lease or Tenant, as the case may be, to a Person (other than a Related Entity or an affiliate of the Indicted Party) who is acting in a fiduciary capacity as an independent trustee for the benefit of the Indicted Party for the purpose of actively managing this Lease or the Indicted Party’s interest in Tenant, as the case may be, or (iv) a combination of two or more of the actions described in clauses (i), (ii) and (iii) above with respect to portions of the Indicted Party’s interest that constitute, in the aggregate, the Indicted Party’s entire interest. The trustee agreement between the Indicted Party and the trustee contemplated by clause (iii) of the immediately preceding sentence shall be reasonably satisfactory to Landlord as well as to the holder of the Recognized Mortgage most senior in lien (if required by the terms of Recognized Mortgage). The trust agreement shall provide as follows:

(1)    if (x) the Indicted Party is found not guilty of the felony for which it is indicted or (y) the felony charges against such Indicted Party are dismissed or changed or reduced to charges that do not constitute an intentional felony, then the trustee shall give back the Indicted Party’s interest in Tenant or in this Lease to the Indicted Party, and the Indicted Party shall have the right to be a director and hold office in Tenant;

(2)    if (x) the Indicted Party is found guilty of the felony for which it is indicted and such verdict is affirmed by the court having ultimate jurisdiction to hear any appeal of such conviction or the period of appeal expires or the Indicted Party waives any right to appeal such determination or (y) the Indicted Party pleads guilty to the felony for which it is indicted or another intentional felony (as to which a Hearing is held and a determination made that a Permitted Disposition by the Indicted Party is in the best interest of the City) (either (x) or (y) above, a “Conviction”), then the trustee shall assign this Lease or make a sale of the Indicted Party’s interest in Tenant, as the case may be, within six (6) months after the date of the Conviction to a Person or Persons permitted under clause(s) (i) and (ii) above; and

98

(3)    during the pendency of any such trust, the Indicted Party shall exercise no control over any portion of the Demised Premises or Tenant, as the case may be, but may make contributions to the Demised Premises or Tenant, as the case may be, and receive distributions therefrom. Landlord shall be deemed to have determined that a Person is satisfactory to Landlord under clause (i) above if Landlord shall not have delivered notice to Tenant that the proposed Person to whom the Permitted Disposition is to be made is unsatisfactory with forty-five (45) days after Tenant makes a written request accompanied by such financial and biographical information and other documentation as Landlord may reasonably require in making the determination. Neither the giving of the Indicted Party’s interest in this Lease or Tenant, as the case may be, to a Trustee, nor the giving back by a Trustee to the Indicted Party of such interest, shall constitute an Assignment or Equity Interest Disposition. No Permitted Disposition which complies with the requirements of this Section 13.10(d)(3) shall constitute a default on the part of Tenant under this Lease.

Section 13.11  Right to Amend to Reflect Exercise of Certain Options.

(a)    The parties hereto acknowledge that, pursuant to NYTB’s operating agreement and to the Condominium Declaration, from time to time Tenant may exercise certain rights to purchase specified space in the Improvements from FC or may otherwise acquire such space.

(b)    In the event that Tenant or any Control Affiliate thereof acquires space as described in Section 13.11(a) hereof, and notice of such acquisition is provided to Landlord describing in detail the space in the Improvements acquired by Tenant or any Control Affiliate thereof, the date such transfer will take place and any other information that Landlord may reasonably request regarding such transfer, (i) Landlord shall enter into (A) an amendment of this Lease with Tenant, effective as of the date of such transfer, altering the description of the Demised Premises accordingly and (B) an amendment of any other Severance Sublease with the tenant thereunder, the demise thereunder which is affected by such transfer, effective as of the date of such transfer, altering accordingly the description of the Demised Premises (as defined in such Severance Sublease) and the applicable Percentage Allocation, and (ii) Tenant shall provide to Landlord an Architect’s Certificate as described in Section 3.1(a)(i)(B)(2) hereof and a Tenant’s TSF Certificate, both reflecting any alteration in the number of Taxable Square Feet comprising the Demised Premises.

(c)    Tenant shall pay, upon Landlord’s demand, all of Landlord’s reasonable costs associated with Landlord’s review, negotiation and finalization of documentation in respect of any amendment of this Lease pursuant to this Section 13.11.

99

ARTICLE XIV
DEFAULT PROVISIONS

Section 14.1  Conditions of Limitation. (a) This Lease and the term and estate hereby granted are subject to the limitation that whenever an Event of Default shall occur, regardless of and notwithstanding the fact that Landlord has or may have some other remedy under this Lease or by virtue hereof, or in law or in equity, Landlord may, subject to Section 14.1(b) hereof, give to Tenant a Termination Notice and, upon the giving of the Termination Notice, this Lease and the term and estate hereby granted shall expire and terminate upon the day so specified in the Termination Notice as fully and completely and with the same force and effect as if the day so specified were the Scheduled Expiration Date and all rights of Tenant under this Lease shall expire and terminate, but Tenant shall remain liable for damages as hereinafter provided. From and after the date upon which Landlord shall be entitled to give a Termination Notice, Landlord, without further notice, may re-enter, possess and repossess itself of the Demised Premises as set forth in Section 23.2 hereof.

(b)    The parties hereto acknowledge and agree that the occurrence of a Default hereunder shall cause irreparable harm to Landlord and to the ▇▇▇▇ ▇▇▇▇▇▇ Project. In recognition of such harm to Landlord and the ▇▇▇▇ ▇▇▇▇▇▇ Project, and in consideration for Landlord’s election to invoke such remedy, Landlord may elect, in Landlord’s sole discretion, to forego (but only until, with respect to each such Default, receipt by Tenant of the notice described in Section 14.1(b)(iii) hereof) the remedies set forth in Sections 14.1(a) and 14.3(a) hereof, and in lieu thereof to elect that the following payments be made by Tenant:

(i)            In respect of any Default pursuant to Section 14.2(a) hereof, Tenant shall pay to Landlord a sum in the amount of $1,000 per day (Adjusted for Inflation upon the Substantial Completion Date and on every fifth annual anniversary thereof), which amount shall be reduced to Tenant’s Percentage Allocation of such amount in the event that the Default in question arose solely in respect of the Common Elements and Landlord has invoked Section 14.1(b) under each Severance Sublease against each tenant of the Severance Subleases as a remedy therefor, from Tenant’s receipt of a First Default Notice until the date such Default is remedied; and

(ii)           In respect of any Default pursuant to Sections 14.2(b), 14.2(c) and 14.2(d) hereof, Tenant shall pay to Landlord a sum in the amount of $2,000 per day (Adjusted for Inflation upon the Substantial Completion Date and on every fifth annual anniversary thereof), which amount shall be reduced to Tenant’s Percentage Allocation of such amount in the event that the Default in question arose solely in respect of the Common Elements and Landlord has invoked Section 14.1(b) under each Severance Sublease against each tenant of the Severance Subleases as a remedy therefor, from Tenant’s receipt of a First Default Notice until the date such Default is remedied; provided, however, that for so long as Tenant shall not have received First Default Notices regarding any two (2) or more Defaults (it being understood that, if a Default is later determined not to have occurred, such Default shall not qualify as one of the two (2) or more Defaults under this provision) within the preceding twelve (12) month period (A) the amounts described in this Section 14.1(b)(ii) shall not begin to accrue against Tenant unless and until the grace period provided in Section 14.2(b), 14.2(c) or 14.2(d) hereof, as applicable, has expired, and (B) in the event that such underlying Default is cured prior to the expiration of

100

any grace period provided in Section 14.2(b), 14.2(c) or 14.2(d) hereof, any such amount payable under this Section 14.1(b)(ii) shall be waived by Landlord and not imposed against Tenant.

(iii)          Landlord may elect, at any time after Landlord’s election to receive any of the payments described in clause (i) or (ii) of this Section 14.1(b), upon delivery to Tenant of another First Default Notice (thereupon reinitiating the relevant cure periods), to pursue any of the remedies otherwise available under this Lease with respect to the applicable Default. In such event, the respective amounts described in this Section 14.1(b) shall immediately cease to accrue, with respect to all such Defaults, as of the date Landlord makes an election to pursue any other remedy, it being understood that, as to amounts accrued prior to such election, (A) such amounts shall continue to be owing and (B) Landlord shall have all rights and remedies under this Lease in respect to Tenant’s failure to pay such accrued sums. It is further acknowledged and agreed that Landlord may, at a later date, again forego the remedies set forth in Sections 14.1(a) and 14.3(a) hereof, and again seek payment from Tenant pursuant to and in accordance with this Section 14.1(b) upon delivery to Tenant of another First Default Notice (thereupon reinitiating the relevant cure periods).

Section 14.2  Events of Default. An “Event of Default” shall have occurred (in each case, upon the occurrence of the following: (x) Tenant receiving notice (it being agreed that (1) in the event Landlord is barred (by an automatic stay or court order) from giving any notice referred to in this Section 14.2 by reason of or in connection with the bankruptcy or insolvency of Tenant or proceedings in respect thereof, such notice shall be deemed automatically waived by Tenant for all purposes of this Lease and (2) Landlord shall deliver such notice in connection with a Default relating to the Common Elements to Tenant and to all of the tenants under the Severance Subleases substantially simultaneously) from Landlord (a “First Default Notice”) substantially in the form of Exhibit M attached hereto stating that (1) Tenant is in Default hereunder and stating the period, if any, set forth in the following subsections of this Section 14.2, during which Tenant must cure such Default and (y) Tenant receiving, at any time after the cure period described in the relevant First Default Notice shall have elapsed without Tenant having cured the delineated Default, a notice from Landlord, substantially in the form of Exhibit N attached hereto, indicating that if, within five (5) Business Days after receipt of such second notice, the Default in question has not been cured to Landlord’s satisfaction, an Event of Default shall have occurred, any time after such five (5) Business Day period, Landlord may, but is not obligated to, send a notice to Tenant (the “Termination Notice”), specifying a day that the term of this Lease shall end), after any of the following have occurred (Landlord’s right to invoke its remedies hereunder in respect of any such Event of Default being subject to suspension pursuant to Section 14.1(b) hereof):

(a)    whenever Tenant shall default in the payment of any installment of Charges on any day upon which the same is required to be paid, and any such default shall continue for five (5) Business Days after Landlord shall have delivered to Tenant a First Default Notice; or

(b)    whenever Tenant shall fail to comply with Tenant’s Obligations to maintain adequate insurance in respect of the Condominium Unit as required pursuant to Article

101

X hereof, and Tenant shall fail to remedy the same within seven (7) Business Days after Landlord shall have given Tenant a First Default Notice; or

(c)    whenever Tenant shall do, or permit anything to be done, whether by action or inaction, contrary to any of Tenant’s Obligations under this Lease (except [(i)]as otherwise provided in this Section 14.2 and (ii) in respect of the operation of the Public Amenity, Landlord’s sole remedy for Tenant’s failure to operate the Public Amenity in compliance with Section 30.4(d) hereof shall be as set forth in Section 30.4 hereof), and Tenant shall fail to remedy the same within thirty (30) days after Landlord shall have given Tenant a First Default Notice, unless the remedying thereof requires work to be done, action to be taken, or conditions to be satisfied, which cannot, by their nature, reasonably be performed, done or satisfied by Tenant within such 30-day period (it being agreed that Landlord may, at a commercially- reasonable cost (to be paid by Tenant), retain a disinterested, third-party consultant to oversee the action to be taken to cure the underlying Default by Tenant or Tenant’s designees during such extended period, and to advise Landlord as to the necessity of and diligent prosecution of such actions during such extension; while such consultant’s advice to Landlord shall not be binding on Tenant, it is understood that such advice may be relied upon by Landlord in Landlord’s determination of the reasonableness and duration of any extension under this Section 14.2(c)), in which case no Event of Default shall be deemed to exist as long as Tenant, within such 30-day period, has commenced and thereafter diligently and continuously prosecutes to completion all steps necessary to remedy the same; or

(d)    if any of the representations made by Tenant in Section 30.1(a) hereof are proven to have been false or incorrect in any material respect as of the date made and if, within thirty (30) days after Tenant’s receipt of a First Default Notice in respect thereto, Tenant fails to rectify the state of facts giving rise to such false or incorrect representation, provided that no Event of Default shall be deemed to exist (i) if such a state of facts cannot, by its nature, reasonably be rectified within such thirty 30-day period, so long as Tenant has commenced rectifying such state of facts within such thirty 30-day period and shall be diligently and continuously proceeding to rectify such state of facts or (ii) if the only loss or damage Landlord has sustained or incurred can be cured by the payment of a sum of money and Tenant has made such payment; or

(e)    whenever an involuntary petition shall be filed against Tenant under any bankruptcy or insolvency law or under the reorganization provisions of any law of like import, or a receiver of Tenant or of or for the property of Tenant shall be appointed without the acquiescence of Tenant, or whenever this Lease or the estate hereby granted or the unexpired balance of this Lease would, by operation of law or otherwise, except for this provision, devolve upon or pass to any Person other than Tenant or as provided in this Lease, and such situation under this Section 14.2(e) shall continue and shall remain undischarged or unstayed for an aggregate period of one hundred twenty (120) days (whether or not consecutive) or shall not be remedied by Tenant within one hundred twenty (120) days; or

(f)     if final, non-appealable judgment for the payment of money shall be rendered against Tenant, and (i) such final judgment shall be for an amount greater than or equal to $25,000,000 and Tenant shall not discharge said judgment or cause it to be discharged (by bonding or otherwise) within sixty (60) days from the entry thereof or (ii) if Tenant shall appeal

102

from such judgment or from the order, decree or process upon which or pursuant to which such judgment was entered and shall secure a stay of execution pending such appeal, within sixty (60) days after such appeal shall be decided or such stay removed; or

(g)    [INTENTIONALLY OMITTED]; or

(h)    [INTENTIONALLY OMITTED]; or

(i)     if Tenant shall exercise its right to terminate the Site 8 South Subway Agreement pursuant to Section 12.A of the Site 8 South Subway Agreement; or

(j)     if there shall occur a default on the part of Tenant following any applicable notice and cure period under the Site 8 South LADA, the Site 8 South Subway Agreement (with respect to Tenant’s operation or maintenance obligations thereunder) or any provision of the Project Agreement but only with respect to those provisions under which Tenant has obligations thereunder (Landlord acknowledging that no other default of Tenant under any other Project Document that does not otherwise give rise to a Default hereunder shall be deemed a Default hereunder).

Section 14.3  Rights of Landlord.

(a)    Enforcement of Performance. If an Event of Default occurs, Landlord may elect to proceed by appropriate judicial proceedings, either at law or in equity, to enforce performance or observance by Tenant of the applicable provisions of this Lease and/or to recover damages for breach hereof.

(b)    Payment of Damages. It is covenanted and agreed by Tenant that in the event of termination of this Lease or re-entry by Landlord, under any of the provisions of this Article XIV or pursuant to Legal Requirements, by reason of default hereunder on the part of Tenant, Tenant shall pay Landlord’s actual damages to Landlord, at the election of Landlord.

(c)    Recovery of Damages. Landlord shall be entitled to recover from Tenant each monthly deficiency as the same shall arise and no suit to collect the amount of the deficiency for any month shall prejudice Landlord’s right to collect the deficiency for any subsequent month by a similar proceeding. Suit or suits for the recovery of any and all damages, or any installments thereof, provided for hereunder may be brought by Landlord from time to time at its election, and nothing contained herein shall be deemed to require Landlord to postpone suit until the Scheduled Expiration Date, or under any provisions of law, or had Landlord not re-entered the Demised Premises.

(d)    No Limit. Nothing herein contained shall be construed as limiting or precluding the recovery by Landlord against Tenant of any sums or damages to which Landlord may lawfully be entitled in any case other than those particularly provided for above (other than consequential damages, which are waived by Tenant and Landlord in respect of all matters under this Lease).

103

(e)    Collateral Assignment. Subject to the rights of all Recognized Mortgagees, upon the occurrence of an Event of Default, Landlord shall have the right to exercise its rights under any Collateral Assignments to the extent that the same are then in effect.

(f)     Funds Held by Depositary. If this Lease terminates as a result of one or more Events of Default and all of the other Severance Subleases also have been terminated, any funds held by Depositary in respect solely of this Lease or the Common Elements shall, subject to the rights of any Subtenants with respect to which Landlord has entered into a Nondisturbance Agreement, be paid to Landlord, which it may keep as liquidated damages free of any claim by Tenant, or any Person claiming by, under or through Tenant.

(g)    Percentage Rent Calculation. The average annual Percentage Rent paid or payable by Tenant during the Stabilized Lease Years immediately preceding such termination or re-entry (such average calculated by increasing the Percentage Rent for each applicable year by the Discount Rate applied from the date such rent was paid in full to the date such average is determined), shall, for purposes of calculating Charges under this Section 14.3, be deemed to be the Percentage Rent which would be payable by Tenant for each Lease Year during the balance of the original term. As used in this Section 14.3(g), “Stabilized Lease Year” shall mean each full Lease Year commencing not less than twelve (12) months following the Substantial Completion Date, excluding any Lease Year all or any part of which falls within the period commencing upon the occurrence of a significant casualty or Taking and ending twelve (12) months after the Substantial Completion Date following such casualty or Taking. For purposes of calculating the deemed Percentage Rent pursuant to this Section 14.3(g), the number of Stabilized Lease Years shall be the lesser of ten (10) or the actual number of Stabilized Lease Years preceding such termination or re-entry.

(h)    Plans and Specifications. Upon the occurrence of an Event of Default and termination of this Lease, subject to Section 9.4 hereof, Tenant’s rights to the Final Plans and Specifications shall be deemed automatically assigned to Landlord, without cost, subject, however, to any rights of any Recognized Mortgagee to such plans and specifications.

(i)     Assignment of Construction Agreements. Upon termination of this Lease by reason of the occurrence of an Event of Default, at the request of Landlord and subject to the rights, if any, of any Recognized Mortgagee, Tenant shall assign to Landlord, without cost, and Landlord shall assume, all of Tenant’s interest in any or all agreements with respect to any Restoration, Condemnation Restoration or Alterations in or to the Demised Premises and the Common Elements or any portion thereof which are not then subject to any Collateral Assignment. Upon the request of Landlord, the respective contractors, materialmen and suppliers who are parties to any such agreements shall, subject to the rights of all Recognized Mortgagees, attorn to Landlord and any agreements entered into between Tenant and such parties shall specifically provide for such attornment upon Landlord’s request.

(j)     Assignment of Right to Excess Site Acquisition Costs Reimbursement (Allocated). Upon termination of this Lease by reason of the occurrence of an Event of Default, at the request of Landlord, Tenant shall assign to Landlord, without cost, and Landlord shall assume, all of Tenant’s interest in any right to reimbursement of Excess Site Acquisition Costs (Allocated).

104

Section 14.4  Waiver of Right of Redemption. 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 they or any of 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 being dispossessed or ejected therefrom by process of law or under the terms of this Lease or after the termination of this Lease as herein provided. Nothing in the foregoing portions of this Section 14.4 shall affect the rights of any Recognized Mortgagees under Article XXXI hereby.

Section 14.5  No Waiver. Failure of either party hereto to declare any default immediately upon its occurrence or delay in taking any action in connection with such default shall not waive such default but such party shall have the right to declare any such default at any time thereafter. After an Event of Default, any amounts paid by Tenant to Landlord may be applied by Landlord, in its sole discretion, to any items then owing by Tenant to Landlord under this Lease. Receipt of a partial payment shall not be deemed to be an accord and satisfaction or waiver of the failure to make full payment.

Section 14.6  Remedies Under Bankruptcy and Insolvency Codes. If an order for relief is entered or if any stay of proceeding or other act becomes effective in favor of Tenant or Tenant’s interest in this Lease in any proceeding commenced by or against Tenant under the present or any future United States Bankruptcy Code or in a proceeding which is commenced by or against Tenant seeking a reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any other present or future applicable federal, state or other bankruptcy or insolvency statute or law, Landlord shall be entitled to invoke any and all rights and remedies available to it under such bankruptcy or insolvency code, statute or law of this Lease, including such rights and remedies as may be necessary to adequately protect Landlord’s right, title and interest in and to the Demised Premises or any part thereof and adequately assure the complete and continuous future performance of Tenant’s Obligations under this Lease. Adequate protection of Landlord’s right, title and interest in and to the Demised Premises, and adequate assurance of the complete and continuous future performance of Tenant’s Obligations under this Lease, shall include all of the following requirements:

(a)    that Tenant shall comply with all of its Obligations under this Lease;

(b)    that Tenant shall continue to use the Demised Premises only in the manner permitted by this Lease; and

(c)    that if Tenant’s trustee, Tenant or Tenant as debtor-in-possession assumes this Lease and proposes to assign it (pursuant to Title 11 U.S.C. Section 365, as it may be amended) to any Person who has made a bona fide offer therefor, the notice of such proposed Assignment, giving (i) the name and address of such Person, (ii) all of the terms and conditions of such offer, and (iii) the adequate assurance to be provided Landlord to assure such Person’s future performance under this Lease, including the assurances referred to in Title 11 U.S.C. Section 365[b](3), as it may be amended, and such other assurances as Landlord may reasonably require, shall be given to Landlord by the trustee, Tenant or Tenant as debtor-in-possession of such offer, not later than twenty (20) days before the date that the trustee, Tenant or Tenant as debtor-in-possession shall make application to a court of competent jurisdiction for authority and

105

approval to enter into such Assignment, and Landlord shall thereupon have the prior right and option, to be exercised by notice to the trustee, Tenant and Tenant as debtor-in-possession, given at any time before the effective date of such proposed Assignment, to accept an Assignment of this Lease upon the same terms and conditions and for the same consideration, if any, as the bona fide offer made by such Person, less any brokerage commissions which may be payable out of the consideration to be paid by such Person for the Assignment of this Lease. Landlord shall have no obligation to pay such brokerage commissions. If Tenant attempts to arrange such an Assignment of this Lease, then as an element of the required adequate assurance to Landlord, and as a further condition to Tenant’s right to make such an Assignment, Tenant’s agreement(s) with brokers shall, to Landlord’s reasonable satisfaction, provide that Landlord shall have no obligation to pay a brokerage commission if Landlord exercises Landlord’s rights under this Section 14.6.

Section 14.7  Relationship Among Severance Tenants.

(a)    Except with respect to the obligations hereunder with respect to the Common Elements, the obligation of each tenant under a Severance Sublease is separate and distinct from the obligations of all other tenants under the Severance Subleases, and except for a Default arising with respect to the Common Elements, no Default by a tenant under a Severance Sublease shall of itself constitute a Default by any other tenant under the Severance Subleases.

(b)    Each tenant under a Severance Sublease shall be jointly and severally obligated with respect to all Defaults arising with respect to the Common Elements (it being acknowledged that the sums set forth in Section 14.1(b) hereof for such Defaults per day shall be calculated without regard to the number of tenants under the Severance Subleases). Landlord shall exercise its rights and remedies under this Article XIV in respect of a Default relating to the Common Elements simultaneously against all tenants under the Severance Subleases; provided, however, that Landlord’s rights and remedies hereunder in respect of Tenant shall not be decreased or in any other way impaired, and Landlord shall not be prevented from doing so by reason of any bar (by automatic stay or court order) by reason of or in connection with the bankruptcy or insolvency of any other tenant under a Severance Sublease or proceedings in respect thereof.

106

ARTICLE XV
LANDLORD’S RIGHT TO PERFORM

Section 15.1  Right to Perform. If Tenant shall fail to pay any Imposition or Charges or make any other payment required to be made under this Lease or shall default in the performance of any other Obligations of Tenant herein contained, Landlord, without being under any obligation to do so and without thereby waiving such default, may make such payment and/or remedy such other default for the account and at the expense of Tenant, (a) immediately and without notice in the case of any failure to pay any Imposition or any other amount due a third party, if such failure would result in the creation of a lien on the Demised Premises and/or the Common Elements or any part thereof or any loss or impairment of Landlord’s estate hereunder or in and to the Demised Premises and/or the Common Elements, or in the case of any failure to perform any of Tenant’s Obligations hereunder which creates an imminent threat to public health or safety, or (b) in any other case, only after (i) Landlord shall have notified Tenant once of such default or failure and Tenant shall have failed to make such payment or remedy such default within the applicable grace period under this Lease, and (ii) Landlord shall have notified Tenant a second time and Tenant shall have failed to make such payment or remedy such default within ten (10) Business Days following such second notice; provided, however, with respect to any default covered by clause (b) above, Landlord shall not be entitled to remedy the same if and for so long as Tenant has commenced and thereafter diligently and with continuity prosecutes to completion all steps necessary to remedy such default. In furtherance of its rights hereunder, in the event of an imminent threat to human life or safety, Landlord shall have the right to enter upon the Demised Premises and/or the Common Elements in accordance with Section 23.2 hereof, including for the purpose of making repairs or performing work required of Tenant hereunder. The limitations imposed by the foregoing provisions of this Section 15.1 on Landlord’s right to remedy Tenant’s defaults shall not apply to Landlord’s rights to remedy Tenant’s failures under the last paragraphs of Sections 7.3(a) and (b) hereof. Bills for any expenses incurred by Landlord in connection therewith, and bills for all costs, expenses and disbursements of every kind and nature whatsoever, including counsel fees, involved in collecting or endeavoring to collect any Charges or other sums due hereunder, or any part thereof, or involved in enforcing or endeavoring to enforce any right against Tenant under or in connection with this Lease, any Sublease or pursuant to law, including any such cost, expense and disbursement involved in instituting and prosecuting summary proceedings, as well as bills for any property, material, labor or services provided, furnished or rendered, or caused to be, by Landlord to Tenant, with respect to the Demised Premises and/or the Common Elements or equipment used in connection therewith (together with interest at the Interest Rate, from the respective dates of Landlord’s making of each such payment or incurring of each such cost or expense), may be sent by Landlord to Tenant monthly, or immediately, at Landlord’s option, and shall be due and payable in accordance with the terms of said bills (or, in the case of payments to reimburse Landlord, within twenty-three (23) Business Days of demand) and if not paid when due the amount thereof shall immediately become due and payable as additional rent under this Lease. The Obligations of Tenant to pay such bills or to reimburse Landlord under this Section 15.1 shall survive the expiration or earlier termination of this Lease.

Section 15.2  Additional Remedies. The mention herein of any particular remedy shall not preclude either party hereunder from any other remedy it might have either in law or in equity. Any right or remedy of such party in this Lease specified and any other right or

107

remedy that such party may have at law, in equity or otherwise, upon breach of any of the other party’s Obligations hereunder shall be distinct, separate and cumulative rights or remedies, and no one of them, whether exercised by Landlord or not, shall be deemed to be in exclusion of any other.

Section 15.3  Strict Performance. No failure by either party to insist upon the other party’s strict performance of any covenant, agreement, term or condition of this Lease, or the failure of Landlord to exercise any right or remedy available to Landlord by reason of a Default or Event of Default, or the failure of Tenant to exercise any right or remedy available to Tenant by reason of Landlord’s default, and no payment or acceptance of full or partial Charges during the continuance of any Default or Event of Default, constitutes a waiver of any such Default or Event of Default or of either party’s right to strict performance of such covenant, agreement, term or condition.

Section 15.4  Right to Enjoin Defaults or Threatened Defaults. In the event of any breach or threatened breach by either party of any of the covenants, agreements, terms or conditions contained in this Lease, the other party shall be entitled to bring an action to enjoin such breach or threatened breach or to compel specific performance of any covenant, agreement, term or condition herein, which right shall be cumulative with such party’s other rights and remedies.

108

ARTICLE XVI
ARBITRATION

Section 16.1  Generally. Unless otherwise expressly permitted hereunder, all disputes hereunder to be resolved by arbitration shall be resolved in accordance with this Article XVI.

Section 16.2  Standard Arbitration. (a) If either party hereto desires to invoke the arbitration procedure set forth in this Section 16.2, the party invoking the arbitration procedure shall give a notice (the “Arbitration Notice”) to the other party stating that the party sending the Arbitration Notice desires to meet within seven (7) Business Days to attempt to agree on a single arbitrator (the “Arbitrator”) to determine the question at issue. The Arbitrator appointed shall be competent, qualified by training and experience, disinterested and independent, and an individual having not less than ten (10) years experience relating to commercial real estate in New York City. If the parties hereto have not agreed on the Arbitrator within ten (10) Business Days after the giving of the Arbitration Notice, then either party hereto, on behalf of both, may apply to the New York City office of the American Arbitration Association or any organization which is the successor thereto (the “AAA”) for appointment of the Arbitrator, or, if the AAA shall not then exist or shall fail, refuse or be unable to act such that the Arbitrator is not appointed by the AAA within twenty-three (23) Business Days after application therefor, then either party may apply to the presiding Justice of the Appellate Division of the Supreme Court of the State of New York, First Department (the “Court”), for the appointment of the Arbitrator and the other party shall not raise any question as to the Court’s full power and jurisdiction to entertain the application and make the appointment. The date on which the Arbitrator is appointed by the agreement of the parties, by appointment by the AAA or by appointment by such court is referred to herein as the “Appointment Date”. If any Arbitrator appointed hereunder shall be unwilling or unable, for any reason, to serve, or continue to serve, a replacement Arbitrator shall be appointed in the same manner as the original Arbitrator.

(b)    The arbitration shall be conducted in accordance with the then prevailing commercial arbitration rules of the AAA, modified as follows:

(i)            To the extent that the New York State Civil Practice and Law Rules (the “CPLR”), or any successor statute, imposes requirements different from those of the AAA in order for the decision of the Arbitrator to be enforceable in the courts of the State of New York, such requirements shall be complied with in the arbitration.

(ii)           Before hearing any testimony or receiving any evidence, the Arbitrator shall be sworn by an officer authorized to administer an oath to hear and decide the controversy faithfully and fairly and a written copy thereof shall be delivered to Landlord and Tenant.

(iii)          Within twenty-three (23) Business Days after the Appointment Date, the parties hereto shall deliver to the Arbitrator two (2) copies of their respective written determinations of the appropriate resolution of the issue in question (each, a “Determination”), together with such affidavits, appraisals, reports and other written evidence relating thereto as the submitting party deems appropriate. After the submission of any Determination, the submitting

109

party may not make any additions to or deletions from, or otherwise change, such Determination or the affidavits, appraisals, reports and other written evidence delivered therewith. If either party fails to so deliver its Determination within such time period, such party shall be deemed to have irrevocably waived its right to deliver a Determination and the Arbitrator, without holding a hearing, shall accept the Determination of the submitting party as the appropriate resolution of the issue in question. If each party submits a Determination with respect to the appropriate resolution of the issue in question, within the thirty-day period described above, the Arbitrator shall, promptly after its receipt of the second Determination, deliver a copy of each party’s Determination to the other party.

(iv)          Not more than twenty-three (23) Business Days after the earlier to occur of (A) the expiration of the thirty-day period provided for in clause (iii) above or (B) the Arbitrator’s receipt of both of the Determinations from the parties (such earlier date is referred to herein as the “Submission Date”), and upon not less than seven (7) Business Days’ notice to the parties, the Arbitrator may hold one or more hearings with respect to the determination of the appropriate resolution of the issue in question. The hearings shall be held in the Borough of Manhattan at such location and time as shall be specified by the Arbitrator. Each of the parties shall be entitled to present all relevant evidence and to cross-examine witnesses at the hearings. The Arbitrator shall have the authority to adjourn any hearing to such later date as the Arbitrator shall specify, provided that in all events all hearings with respect to the determination of the appropriate resolution of the issue in question shall be concluded not later than sixty (60) days after the Submission Date.

(v)           The Arbitrator shall be instructed, and shall be empowered only, to select one of the Determinations which the Arbitrator believes is the more appropriate resolution of the issue at hand. Without limiting the generality of the foregoing, in rendering her or his decision, the Arbitrator shall not add to, subtract from, or otherwise modify the provisions of this Lease or either of the Determinations.

(vi)          The Arbitrator shall render his or her determination as to the selection of a Determination in a signed and acknowledged written instrument, original counterparts of which shall be sent simultaneously to the parties hereto, within seven (7) Business Days after the earlier to occur of (A) his or her determination of the appropriate resolution of the issue in question pursuant to clause (iii) above or (B) the conclusion of the hearing(s) referred to in clause (iv) of this subsection.

(c)    The arbitration decision, determined as provided in this Section 16.2, shall be conclusive and binding on the parties, shall constitute an “award” by the Arbitrator within the meaning of the AAA rules and applicable law and judgment may be entered thereon in any court of competent jurisdiction.

(d)    Each party shall pay its own fees and expenses relating to the arbitration described herein (including, without limitation, the fees and expenses of its counsel and of experts and witnesses retained or called by it). Each party shall pay one-half of the fees and expenses of the AAA and of the Arbitrator; provided that if either party fails to submit a Determination within the period provided therefor, such non-submitting party shall pay all of such fees and expenses.

110

(e)    Time shall be of the essence as to all obligations of Landlord and Tenant set forth in this Section 16.2.

Section 16.3  Expedited Arbitration. (a) If either party hereto desires to invoke the arbitration procedure set forth in this Section 16.3, the party invoking the arbitration procedure shall give an Arbitration Notice to the other party stating that the party sending the Arbitration Notice desires to meet within three (3) Business Days to attempt to agree on an Arbitrator to determine the question at issue. The Arbitrator appointed shall be competent, qualified by training and experience, disinterested and independent, and an individual having not less than ten (10) years experience relating to commercial real estate in New York City. If the parties hereto have not agreed on the Arbitrator within three (3) Business Days after the giving of the Arbitration Notice, then either party hereto, on behalf of both, may apply to the AAA for appointment of the Arbitrator, or, if the AAA shall not then exist or shall fail, refuse or be unable to act such that the Arbitrator is not appointed by the AAA within twenty (20) Business Days after application therefor, then either party may apply to the Court, for the appointment of the Arbitrator and the other party shall not raise any question as to the Court’s full power and jurisdiction to entertain the application and make the appointment. The date on which the Arbitrator is appointed by the agreement of the parties, by appointment by the AAA or by appointment by such court is referred to herein as the “Appointment Date”. If any Arbitrator appointed hereunder shall be unwilling or unable, for any reason, to serve, or continue to serve, a replacement Arbitrator shall be appointed in the same manner as the original Arbitrator.

(b)    The arbitration shall be conducted in accordance with the then prevailing commercial arbitration rules of the AAA for expedited arbitration, modified as follows:

(i)            To the extent that the CPLR, or any successor statute, imposes requirements different from those of the AAA in order for the decision of the Arbitrator to be enforceable in the courts of the State of New York, such requirements shall be complied with in the arbitration.

(ii)           Before hearing any testimony or receiving any evidence, the Arbitrator shall be sworn by an officer authorized to administer an oath to hear and decide the controversy faithfully and fairly and a written copy thereof shall be delivered to Landlord and Tenant.

(iii)          Within ten (10) Business Days after the Appointment Date, the parties hereto shall deliver to the Arbitrator two (2) copies of their respective Determinations, together with such affidavits, appraisals, reports and other written evidence relating thereto as the submitting party deems appropriate. Such ten Business-Day period may not be extended by the Arbitrator. After the submission of any Determination, the submitting party may not make any additions to or deletions from, or otherwise change, such Determination or the affidavits, appraisals, reports and other written evidence delivered therewith. If either party fails to so deliver its Determination within such time period, such party shall be deemed to have irrevocably waived its right to deliver a Determination and the Arbitrator, without holding a hearing, shall accept the Determination of the submitting party as the appropriate resolution of the issue in question. If each party submits a Determination with respect to the appropriate resolution of the issue in question, within the ten Business-Day period described above, the

111

Arbitrator shall, promptly after its receipt of the second Determination, deliver a copy of each party’s Determination to the other party.

(iv)          Not more than ten (10) Business Days after the earlier to occur of (A) the expiration of the ten Business-Day period provided for in clause (iii) above or (B) the Submission Date, and upon not less than three (3) Business Days’ notice to the parties, the Arbitrator may hold one hearing with respect to the determination of the appropriate resolution of the issue in question. The hearing shall be held in the Borough of Manhattan at such location and time as shall be specified by the Arbitrator. Each of the parties shall be entitled to present all relevant evidence and to cross-examine witnesses at the hearing. The Arbitrator shall have the authority to adjourn any hearing to such later date as the Arbitrator shall specify, provided that in all events all hearings with respect to the determination of the appropriate resolution of the issue in question shall be concluded not later than thirty (30) days after the Submission Date.

(v)           The Arbitrator shall be instructed, and shall be empowered only, to select one of the Determinations which the Arbitrator believes is the more appropriate resolution of the issue at hand. Without limiting the generality of the foregoing, in rendering her or his decision, the Arbitrator shall not add to, subtract from, or otherwise modify the provisions of this Lease or either of the Determinations.

(vi)          The Arbitrator shall render his or her determination as to the selection of a Determination in a signed and acknowledged written instrument, original counterparts of which shall be sent simultaneously to the parties hereto, within three (3) Business Days after the earlier to occur of (A) his or her determination of the appropriate resolution of the issue in question pursuant to clause (iii) above or (B) the conclusion of the hearing(s) referred to in clause (iv) of this subsection.

(c)    The arbitration decision, determined as provided in this Section 16.3, shall be conclusive and binding on the parties, shall constitute an “award” by the Arbitrator within the meaning of the AAA rules and applicable law and judgment may be entered thereon in any court of competent jurisdiction.

(d)    Each party shall pay its own fees and expenses relating to the arbitration described herein (including, without limitation, the fees and expenses of its counsel and of experts and witnesses retained or called by it). Each party shall pay one-half of the fees and expenses of the AAA and of the Arbitrator; provided that if either party fails to submit a Determination within the period provided therefor, such non-submitting party shall pay all of such fees and expenses.

(e)    Time shall be of the essence as to all obligations of Landlord and Tenant set forth in this Section 16.3.

Section 16.4  Single Arbitration. The parties hereto acknowledge that the scope and requirements of certain obligations under each Severance Sublease may result in a dispute, governed by Article XVI of each applicable Severance Sublease, between Landlord and the tenants under more than one Severance Sublease. The parties hereto agree that: (a) Landlord may join Tenant as a party to an arbitration proceeding initially commenced in respect of another

112

Severance Sublease (and Tenant expressly submits to such joining and waives any rights it might have to dispute such joining) if the failure to so join would materially and adversely affect the Public Parties’ administration of the Severance Subleases, would result in the need for duplicative proceedings to resolve the same matter or could result in conflicting determinations with respect to Common Elements; (b) Landlord may join other tenants under Severance Subleases to an arbitration proceeding initially commenced in respect of Tenant (and Tenant expressly submits to such joining and waives any rights it might have to dispute such joining) if the failure to so join would materially and adversely affect the Public Parties’ administration of the Severance Subleases, would result in the need for duplicative proceedings to resolve the same matter or could result in conflicting determinations with respect to Common Elements; and (c) Tenant may join any arbitration initiated between Landlord and any other tenant under a Severance Sublease (and Landlord expressly submits to such joining and waives any rights it might have to dispute such joining). Moreover, in the event that Tenant joins or is joined in any arbitration preceding described in this Section 16.4, Tenant agrees that Tenant shall: (i) not initiate (or attempt to initiate) a separate arbitration or other action, whether hereunder or otherwise, in respect of the same dispute; (ii) make any decision or proposal required of Tenant under this Article XVI solely in concert with any other tenants under Severance Subleases so joined if the failure to so act in concert would materially and adversely affect the Public Parties’ administration of the Severance Subleases, would result in the need for duplicative proceedings to resolve the same matter or could result in conflicting determinations with respect to the Common Elements; and (iii) comply with any decision rendered by the arbitrator pursuant to such arbitration, regardless of whether Tenant fails to participate in the arbitration proceeding.

113

ARTICLE XVII
INDEMNITY; LIMITATION ON LIABILITY

Section 17.1  Indemnification by Tenant. To the fullest extent permitted by law, Tenant shall indemnify Landlord and the Public Parties for, and hold Landlord and all of the Public Parties harmless from and against, any and all claims that may be imposed upon or incurred by or asserted against Landlord or any of the Public Parties by reason of any of the following, (x) except with respect to (i) actions taken or claimed to have been taken by, or on behalf of, Landlord with respect to all or any portion of the Property prior to the Delivery Date, (ii) the physical condition, prior to the Delivery Date, of any Improvements existing on the Land prior to the Delivery Date, (iii) any claims for compensation by condemnees as a result of the Condemnation or (iv) any claims by third parties that relate to the Property and which arose prior to the Delivery Date, or (y) unless caused by the gross negligence or intentionally tortious acts of Landlord, the Public Parties or their respective agents or employees, or by the actions of Landlord, the Public Parties, or their respective agents or employees in its or their governmental capacity:

(a)    any accident, injury to or death of Persons or loss of or damage to property occurring on or about the Demised Premises and/or the Common Elements or as a result of any act or omission occurring on or with respect to the Property or any other matter or thing arising out of the use, repair, maintenance, operation or occupation of the Demised Premises and/or the Common Elements, or the use, repair, maintenance, operation and occupation by Tenant of the streets, sidewalks or service roads, as applicable, adjacent thereto;

(b)    performance of any Alterations or act done in, on or about the Demised Premises and/or the Common Elements or any part thereof;

(c)    any lien or claim that may be alleged to have arisen against or on the Demised Premises and/or the Common Elements, or any lien or claim created or permitted by Tenant or any Subtenant or any of its or their officers, agents, contractors, servants, employees, licensees or invitees against any assets of, or funds appropriated to, Landlord;

(d)    any claim for brokerage commissions, fees or other compensation by any person who alleges to have acted or dealt with Tenant in connection with this Lease or the transactions contemplated by this Lease or any Transfers;

(e)    any failure on the part of Tenant to perform or comply with any of Tenant’s Obligations;

(f)     any failure or alleged failure on the part of Tenant or a Related Entity to perform or comply with any agreement between Tenant or a Related Entity and a third party; and

(g)    any claim that Landlord is in default of any obligations under the Condominium Documents.

Notwithstanding the above, Tenant shall have no duty to indemnify Landlord or any of the Public Parties from such Claims to the extent such Claims (1) arise from a failure or alleged failure on the part of Landlord to perform or comply with any agreement between Landlord and a

114

third party not covered by this Lease, or (2) in respect of Sections 17.1(a) and 17.1(b) hereof, arise prior to the Delivery Date (provided, however, the limitation contained in this clause (2) shall not apply to the extent such Claims are based on Tenant’s negligence, willful misconduct, alleged violation of Legal Requirements or failure to comply with the terms of this Lease).

Section 17.2  Indemnification Generally.

(a)    Indemnified Parties. Wherever in this Lease a party shall be obligated to indemnify the other party, then such party shall indemnify, defend and hold harmless the other party and its respective commissioners, members, directors, officers, agents, employees, partners and/or shareholders (collectively, the “Indemnified Parties”), to the full extent lawful, from and against all Claims which shall be paid, incurred, related to or arising from the indemnified matter. The foregoing indemnification shall be in addition to any liability which such party may otherwise have. If indemnification were for any reason not to be available with respect to any matter, the indemnifying party shall contribute to the settlement, loss or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the Indemnified Parties, on the other hand, as well as any other relevant equitable considerations.

(b)    Proceedings. The indemnifying party under this Lease shall defend the applicable Indemnified Party with counsel reasonably satisfactory to such Indemnified Party (unless the indemnified Claim is covered by insurance, in which event counsel shall be attorneys for, or approved by, the insurance carrier), shall keep the Indemnified Party apprised of all legal proceedings and shall not enter into any settlement without the Indemnified Party’s prior written consent, which shall not be unreasonably withheld. Promptly after receipt by the Indemnified Party of notice of any claim or the commencement of any action or proceeding covered by the indemnity pursuant to this Section 17.2, the Indemnified Party shall notify the indemnifying party in writing of such claim or the commencement of such action or proceeding.

(c)    Payment of Costs. Tenant’s Obligations with respect to any matter under this Lease as to which Tenant is indemnifying Landlord shall not be affected in any way by the absence of insurance coverage, the amount of any deductible, or by the failure or refusal of any insurance carrier to perform an obligation on its part under insurance policies procured by or on behalf of Tenant. Any amounts that become payable by Tenant to Landlord under this Lease with respect to any such matter and that are not paid within ten (10) Business Days after demand therefor following payment of such amounts by Landlord shall bear interest at the Interest Rate from the date of such payment by Landlord.

Section 17.3  Recourse Only to Landlord’s Estate in the Demised Premises and the Common Elements. Notwithstanding anything to the contrary contained herein, in the event of any default by Landlord hereunder, Tenant shall look only to Landlord’s estate in the Demised Premises and Tenant’s undivided interest in the Common Elements (or the proceeds thereof), and no other property or assets of Landlord or its agents, officers, directors, shareholders, partners or principals, disclosed or undisclosed, shall be subject to levy, execution or other enforcement procedure for the satisfaction of Tenant’s remedies under or with respect to this Lease, the relationship of Landlord and Tenant hereunder or under law or Tenant’s use or occupancy of the Demised Premises and the Common Elements or any other liability of

115

Landlord to Tenant. Tenant in any event hereby waives any right to collect from Landlord any indirect, consequential, special or punitive damages whatsoever, whether or not Landlord was or should have been aware of the probability or magnitude of such damages, unless a court of competent jurisdiction finally determines that Landlord has acted in bad faith in respect of the claim made against Landlord. Tenant’s foregoing waiver constitutes a material inducement to Landlord to enter into the Project Documents.

Section 17.4  Recourse Only to Tenant’s Estate in the Demised Premises and the Common Elements. Notwithstanding anything to the contrary contained herein, Landlord shall look only to Tenant’s interest in the Demised Premises and the Common Elements (or the proceeds thereof) and any funds held by the Depositary pursuant to the terms of this Lease, in the event of the occurrence of any Event of Default by Tenant hereunder, and no other property or assets of Tenant or its Principals shall be subject to levy, execution or other enforcement procedure for the satisfaction of Landlord’s remedies under or with respect to this Lease. The foregoing limitation on liability against other property and assets of Tenant shall not be applicable to:

(a)    loss or damage suffered by Landlord to the extent of any insurance proceeds, Adjusted Gross Revenues, rents, condemnation awards, security deposits, downpayments or trust funds applied by Tenant or its Principals in violation of applicable law or the provisions of this Lease or loss or damage suffered by Landlord on account of any criminal acts, fraud or intentional misrepresentation by Tenant or its Principals;

(b)    any loss from damage to the Demised Premises, the Common Elements or Tenant Subway Improvements resulting from intentional waste, the willful destruction, willful damage by or on behalf of Tenant to the Core and Shell or Tenant Subway Improvements;

(c)    the cost of remediation or removal of Hazardous Materials and reasonable attorney fees and disbursements and other professional fees incurred by Landlord in connection with any matter under Section 7.8 hereof;

(d)    any loss or damage suffered by Landlord in connection with any claim by Tenant that the relationship of Tenant and Landlord is that of joint venturers or any other relationship other than that of landlord and tenant;

(e)    any loss or damage suffered by Landlord arising from a Transfer by Tenant to any Prohibited Person;

(f)     loss, damage or liability in connection with the Demised Premises and/or the Common Elements to the extent such loss, damage or liability would have been covered by insurance if Tenant had maintained the insurance policies required to be maintained hereunder by Tenant; or

(g)    Charges accruing after an Event of Default and before any termination of this Lease by reason of the use or occupancy by Tenant prior to reentry by Landlord.

116

Notwithstanding anything to the contrary in the foregoing, Landlord shall not have recourse to the assets or property of any Principal of Tenant that is an individual for satisfaction of any claim under this Lease.

Section 17.5  Survival. The provisions of this Article XVII shall survive the expiration or earlier termination of this Lease.

117

ARTICLE XVIII
QUIET ENJOYMENT; TRANSFER OF LANDLORD’S INTEREST

Section 18.1  Quiet Enjoyment. Landlord covenants that if and so long as Tenant duly keeps and performs each and every Obligation of Tenant hereunder, Tenant shall quietly enjoy the Demised Premises and its undivided interest in the Common Elements without hindrance or molestation by Landlord, subject to the covenants, agreements, terms, provisions and conditions of this Lease.

Section 18.2  Transfer of Landlord’s Interest. Except as set forth in this Section 18.2, Landlord shall not convey or assign its interest or estate in this Lease, the Property, or any portion thereof, to a third party, other than, after the Lease Assignment Date, its right to receive any amounts payable to Landlord hereunder, and as permitted in Sections 1.01 and 10.09 of the Site 8 South Project Agreement. Landlord may transfer its interest in the Demised Premises and this Lease to any Government Authority; provided, however, that no assignment or transfer permitted hereunder shall result in a decrease (other than to a de minimis extent) in any of Tenant’s or Tenant’s Related Entities’ rights or benefits under any of the Project Documents or ▇▇▇ Project Agreement or an increase (other than to a de minimis extent) in Tenant’s or its Related Entities’ obligations, liabilities or costs under any of the Project Documents or ▇▇▇ Project Agreement. It is expressly understood and agreed that “Landlord”, as used in this Lease, means only the owner for the time being of the Demised Premises and this Lease, and in the event of the sale, assignment or transfer by such owner of its or their interest in the Demised Premises and this Lease and in this Lease, such owner shall thereupon be released and discharged from all of Landlord’s Obligations thereafter accruing; but such Obligations shall be binding upon each new owner of the Demised Premises and this Lease.

118

ARTICLE XIX
WAIVER OF JURY TRIAL; COUNTERCLAIMS

Section 19.1  Waiver of Jury Trial. The parties hereto waive a trial by jury of any and all issues arising in any action or proceeding between them or their successors or assigns under or connected with this Lease or any of its provisions or any negotiations in connection therewith or Tenant’s use or occupancy of the Demised Premises and the Common Elements, except when such action or proceeding arises from personal injury suffered on or resulting from the Demised Premises and the Common Elements.

Section 19.2  No Counterclaims. Tenant shall not interpose any counterclaims in a summary proceeding or in any action based on nonpayment by Tenant of Charges other than compulsory counterclaims.

Section 19.3  Survival. The provisions of this Article XIX shall survive the expiration or earlier termination of this Lease.

119

ARTICLE XX
NOTICES

Section 20.1  Notices. Each written notice, demand, request or other communication required or permitted hereunder shall be in writing and shall be deemed to have been duly given and received (a) if personally delivered with proof of delivery thereof (any notice or communication so delivered being deemed to have been received at the time delivered on a Business Day or, if not a Business Day, the next succeeding Business Day), or (b) by nationally recognized overnight courier (any notice or communication so sent being deemed to have been received on the first succeeding Business Day subsequent to the day so sent), addressed to the respective parties as follows:

(a)                                                             if to Landlord:

The New York Times Company

▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇

▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇

Attention: General Counsel

and

c/o Forest City ▇▇▇▇▇▇ Companies

▇▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇

▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇

Attention: General Counsel

and

INGREDUS Site 8 South LLC

c/o Clarion Partners

▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇

▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇

Attn: ▇▇. ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇

with copies to:

(i)                       The New York Times Company
▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: Director of Real Estate

(ii)                    ▇▇▇▇▇▇▇ Berlin Shereff ▇▇▇▇▇▇▇▇ LLP
Chrysler Building
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, Esq.

120

(iii)                 ▇▇▇▇▇▇ ▇▇▇▇ & ▇▇▇▇▇▇ LLP
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇. ▇▇▇▇, Esq.

(iv)                42nd St. Development Project, Inc.
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: President

(v)                   New York City Economic Development Corporation
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: President

(vi)                New York City Law Department
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: Chief, Economic Development Division

(vii)             Shearman & Sterling
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attention: ▇▇▇▇▇ ▇. ▇▇▇▇▇, Esq. (3578/13)

(viii)          Pillsbury Winthrop LLP
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇ ▇▇▇▇▇▇▇▇, Esq.

(ix)                  New York State Urban Development Corporation
d/b/a Empire State Development Corporation
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇ ▇▇▇▇▇▇ Development Project, Inc.

(x)                     INGREDUS Site 8 South LLC
c/o Clarion Partners
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇.▇.
▇▇▇▇▇ ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇. ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇

121

(xi)                  ▇▇▇▇▇▇▇ ▇▇▇▇ Slate ▇▇▇▇▇▇▇ & ▇▇▇▇ LLP
▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, Esq.

(b)                    if to Tenant:

NYT Real Estate Company LLC

c/o The New York Times Company
▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: General Counsel

with copies to:

(i)                       The New York Times Company
▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: Director of Real Estate

(ii)                    ▇▇▇▇▇▇▇ Berlin Shereff ▇▇▇▇▇▇▇▇ LLP
Chrysler Building
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, Esq.

or to such other address as may be specified by written notice sent in accordance herewith. No notice, demand, request or other communication hereunder shall be effective unless given as aforesaid.

122

ARTICLE XXI
ESTOPPEL CERTIFICATE

Section 21.1  Certificate of Tenant. Tenant shall, within ten (10) Business Days after notice (which notice may not be given more often than three (3) times in any twelve month period) by Landlord, execute, acknowledge and deliver to Landlord or to any other Person specified by Landlord, a statement in writing (which may be relied upon by such Person or by any other Person designated in such notice) (a) certifying (i) that this Lease is unmodified and in full force and effect (or if there are modifications, that this Lease, as modified, is in full force and effect, stating the date of each such modification and providing a copy thereof, if requested), and (ii) the date to which each item of Charges payable by Tenant hereunder has been paid, and (b) stating (i) whether, to the best knowledge of Tenant, any event has occurred that, with the giving of notice or the passage of time, or both, would constitute a default by Landlord in the performance of any covenant, agreement, obligation or condition contained in this Lease, and (ii) whether, to the best knowledge of Tenant, Landlord is in default in performance of any covenant, agreement, obligation or condition contained in this Lease, and, if so, specifying in detail each such default.

Section 21.2  Certificate of Landlord. Landlord shall, within ten (10) Business Days after notice (which notice may not be given more often than three (3) times in any twelve-month period) by Tenant or any Recognized Mortgagee, execute, acknowledge and deliver to Tenant or any Recognized Mortgagee, or such other Person designated by Tenant or such Recognized Mortgagee in such notice, a statement in writing (which may be relied upon by such Person and by current and prospective Recognized Mortgagees, Subtenants and Assignees (other than Prohibited Persons)): (a) certifying (i) that this Lease is unmodified and in full force and effect (or if there are modifications, that this Lease, as modified, is in full force and effect, stating the date of each such modification and providing a copy thereof, if requested), and (ii) the date to which each item of Charges payable by Tenant hereunder to Landlord has been paid; and (b) stating (i) whether, to the best knowledge of Landlord, an Event of Default has occurred or any event has occurred that, with the giving of notice or the passage of time, or both, would constitute an Event of Default and (ii) whether, to the best knowledge of Landlord, a Default has occurred in Tenant’s performance of any covenant, agreement, obligation or condition contained in this Lease, and, if so, specifying, in detail, each such Default or Event of Default.

Section 21.3  Construction Certificate. [INTENTIONALLY OMITTED]

123

ARTICLE XXII
SEVERABILITY

Section 22.1  Severability. If any term or provision of this Lease or the application thereof to any Person or circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Lease, or the application of such term or provision to Persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Lease shall be valid and be enforced to the fullest extent permitted by law.

124

ARTICLE XXIII
END OF TERM; TITLE TO IMPROVEMENTS

Section 23.1  Surrender

(a)    Upon the expiration or earlier termination of this Lease other than by virtue of Tenant’s exercise of the Purchase Option, or upon the re-entry of Landlord upon the Demised Premises pursuant to Section 23.2 hereof, Tenant shall, without any payment to or allowance by Landlord whatsoever, peaceably and quietly leave, surrender and deliver unto Landlord the Demised Premises, the Common Elements and any Improvements and Equipment constructed therein or located thereon from time to time, in good order, condition and repair, reasonable wear and tear excepted, free and clear of (i) all lettings and occupancies, other than Subleases expiring after the Expiration Date with respect to which Landlord has entered into a Nondisturbance Agreement, and (ii) all agreements, easements, encumbrances or other liens, other than the Permitted Encumbrances and those created or consented to in writing by Landlord. If the Demised Premises and the Common Elements is not so surrendered at the end of this Lease, Tenant shall compensate Landlord for all damages which Landlord shall suffer by reason thereof (but excluding consequential damages), and shall indemnify Landlord from and against all Claims resulting from or arising in connection with Tenant’s failure to surrender the Demised Premises and the Common Elements, including any Claim made by any succeeding tenant against Landlord founded upon delay by Landlord in delivering possession of the Demised Premises and the Common Elements to such succeeding tenant, so far as such delay is occasioned by the failure of Tenant to surrender the Demised Premises and the Common Elements. Notwithstanding anything to the contrary contained in this Lease, upon the expiration or earlier termination of this Lease other than by virtue of Tenant’s exercise of the Purchase Option, Tenant shall not be obligated to remove Equipment or to restore the Demised Premises and the Common Elements to its condition prior to any Alterations, but Tenant shall, upon Landlord’s request, be required to remove any personal property of Tenant or any Subtenant, and any Subtenant shall be entitled to remove any Improvement or Equipment made or installed by or on behalf of such Subtenant (other than a Subtenant that is a Related Entity of Tenant) as long as after such removal all elements of the Demised Premise and the Common Elements (1) remain in working order, condition and good repair, reasonable wear and tear excepted and (2) continues to provide all necessary services to the Improvements.

(b)    In the event of any surrender in accordance with Section 23.1(a) hereof, Tenant shall deliver to Landlord (i) Tenant’s executed counterparts of all Subleases (if applicable) and any management, service and maintenance contracts then affecting the Demised Premises or the Common Elements, nothing herein implying that any such Subleases or other agreements may encumber the Demised Premises or the Common Elements after the Expiration Date, (ii) complete maintenance records for the Demised Premises or the Common Elements, (iii) all original licenses and permits then pertaining to the Demised Premises or the Common Elements to the extent in Tenant’s possession or otherwise available, or if such originals are not in Tenant’s possession or available, true and complete copies thereof certified by a Qualified Certifying Party of Tenant, (iv) permanent or temporary certificates of occupancy then in effect for the Improvements (and transfer documents relating thereto), (v) all warranties and guaranties then in effect which Tenant has received in connection with any work or services performed or Equipment installed in the Improvements, (vi) all financial reports, books and records required

125

by this Lease and any and all other documents of every kind and nature whatsoever relating to the operation of the Demised Premises or the Common Elements, to the extent in Tenant’s possession or otherwise obtainable by Tenant upon request, and (vii) all keys to the Demised Premises or the Common Elements.

(c)    In the event this Lease terminates prior to the Scheduled Expiration Date, Tenant shall execute and deliver to Landlord such instruments of surrender, assignment and transfer, as the case may be, as Landlord may deem reasonably necessary to evidence the same pursuant to Section 23.1(b) hereof.

(d)    Except as otherwise provided in Sections 5.2 and 14.3(f) hereof, any funds held by Depositary, including any Restoration Funds that shall not have been applied to Restoration, any other Restoration Funds then being held by Tenant, and any other insurance proceeds or condemnation awards then payable in respect of a Casualty or condemnation (net, to the extent not otherwise deducted, of reasonable, actual out-of-pocket costs of collection, if any, incurred by Tenant), shall be paid to Landlord free and clear of any claim by Tenant, or any Person claiming by, under or through Tenant, subject, however, to the rights, if any, of any Recognized Mortgagee or Subtenant with which Landlord has entered into a Recognized Mortgage or Nondisturbance Agreement, as applicable. By executing this Lease, Tenant shall be deemed to have agreed, subject, however, to the rights, if any, of any Subtenant with which Landlord has entered into a Nondisturbance Agreement, to assign all proceeds and awards, and the right to receive the same, to Landlord effective as of the Expiration Date, and Tenant shall, at Landlord’s request, execute and deliver to Landlord such instruments of assignment as Landlord may request (in form reasonably satisfactory to Landlord) to evidence such assignment. The execution and delivery of such instruments, however, shall not be required to effect the assignment of such proceeds or awards to Landlord.

(e)    The provisions of this Section 23.1 shall survive the expiration or earlier termination of this Lease.

Section 23.2  Re-Entry. From and after any date upon which Landlord shall be entitled to give a Termination Notice, Landlord may, without further notice, enter upon, re-enter, possess and repossess itself of the Demised Premises and the Common Elements, by force, summary proceedings, ejectment or otherwise, and may dispossess and remove Tenant and all other persons and property from the Demised Premises and the Common Elements and may have, hold and enjoy the Demised Premises and the Common Elements and the right to receive all rental and other income of and from the same. As used in this Lease the words “enter” and “re-enter” are not restricted to their technical legal meanings.

Section 23.3  Removal of Property. Any personal property of Tenant, any Manager or any Subtenant which shall remain on or in the Demised Premises or the Common Elements after the Expiration Date and the removal of Tenant and such Subtenant from the Demised Premises or the Common Elements, may, at the option of Landlord, after thirty (30) days prior Notice to Tenant from Landlord, be deemed to have been abandoned by Tenant, such Manager or such Subtenant and may either be retained by Landlord as its property or be disposed of, without accountability, in such manner as Landlord may see fit. However, Landlord shall also have the right to require Tenant to remove any such personal property of Tenant, such

126

Manager or such Subtenant at any such time at Tenant’s own cost and expense, provided that Landlord shall give Tenant at least thirty (30) days prior written notice requesting the removal of any such personal property of Tenant, such Manager or such Subtenant from the Demised Premises and the Common Elements. From and after the Expiration Date, Landlord shall not be responsible for any loss or damage occurring to any property owned by Tenant, such Manager or any Subtenant.

Section 23.4  Title to Improvements. Title to the Improvements within the Demised Premises and the Common Elements, shall remain, and immediately upon erection or installation thereof on the Land shall become, the property of Landlord.

ARTICLE XXIV
COVENANTS BINDING

Section 24.1  Covenants Binding. The covenants, agreements, terms, provisions and conditions of this Lease shall be binding upon and inure to the benefit of the successors and assigns of Landlord and, except as otherwise provided herein, the successors and assigns of Tenant.

127

ARTICLE XXV
ENTIRE AGREEMENT; NO WAIVER

Section 25.1  Entire Agreement. This Lease and the Project Documents contain all the covenants, representations, warranties and conditions made by or between the parties hereto with respect to the subject matter hereof. This Lease may not be (a) changed orally but only by an agreement in writing signed by the party against whom enforcement of any waiver, change, modification or discharge is sought or (b) amended in respect of the Common Elements without the consent of the other tenants under the Severance Subleases, as provided for in Article XXIII, Section 4 of the Condominium Declaration. Prior to the Lease Assignment Date, this Lease shall not be modified in any way without the prior written consent of 42DP.

Section 25.2  No Waiver.

(a)    Receipt of Charges. The payment or receipt of any amounts due hereunder from the other party hereto, with knowledge of any breach of this Lease by such other party or of any default on the part of such other party in the observance, performance or compliance with any of such other party’s Obligations shall not be deemed to be a waiver of any of the terms, covenants or conditions of this Lease. In the event that Tenant is in arrears in the payment of any Charges or other sum payable hereunder, Tenant waives Tenant’s right, if any, to designate the items against which any payments made by Tenant are to be credited, and Tenant agrees that Landlord may apply any payments made by Tenant to any items Landlord sees fit irrespective of and notwithstanding any designation or request by Tenant as to the items against which any such payments shall be credited.

(b)    Enforcement of Terms. No failure on the part of any party hereunder to enforce any term, covenant or condition herein contained, nor any waiver of any right hereunder by any party hereunder, unless in writing, shall discharge or invalidate such term, covenant or condition, or affect the right of such party to enforce the same in the event of any subsequent breach or default. The consent of Landlord to any act or matter must be in writing and shall apply only with respect to the particular act or matter to which such consent is given and shall not relieve the other party hereunder from the obligation wherever required under this Lease to obtain the consent of such party to any other act or matter. The receipt by Landlord of any Charges or any other sum of money or any other consideration hereunder paid by or on behalf of Tenant after the termination, in any manner, of this Lease, or after the giving by Landlord of any notice hereunder to effect such termination, shall not reinstate, continue or extend the term of this Lease or destroy or in any manner impair the efficacy of any such notice of termination as may have been given hereunder by Landlord to Tenant prior to the receipt of any such sum of money or other consideration, unless so agreed to in writing and signed by Landlord. No act or thing done by Landlord or any employee, agent or representative of Landlord during the term of this Lease shall be deemed to be an acceptance of a surrender of the Condominium Unit, excepting only an agreement in writing signed by Landlord accepting or agreeing to accept such a surrender.

128

ARTICLE XXVI
NO MERGER

Section 26.1  No Merger. There shall be no merger of this Lease or of the leasehold estate hereby created with the fee estate or any leasehold estate in the Property by reason of the fact that the same person acquires or holds, directly, this Lease or the leasehold estate hereby created or any interest herein or in such leasehold estate as well as the fee estate or any leasehold estate in the Property.

129

ARTICLE XXVII
ENCUMBRANCES

Section 27.1  Encumbrances. Tenant will not, without the consent of Landlord, which consent Landlord may withhold in its sole and absolute discretion (except in respect of utility or comparable easements necessary for the day-to-day operation of the Demised Premises and the Common Elements, in which case Landlord’s consent shall not be unreasonably withheld), impose any restrictive covenants, liens or encumbrances upon the Demised Premises and the Common Elements or any part thereof. Nothing in the foregoing shall restrict Tenant’s right to encumber the leasehold estate in the Demised Premises and the Common Elements created hereby in accordance with the terms hereof.

130

ARTICLE XXVIII
CONSENTS; APPROVALS

Section 28.1  Reasonable Standard. Wherever it is specifically provided in this Lease that Landlord’s or Tenant’s consent shall not be unreasonably withheld, Landlord or Tenant, as applicable, must be reasonable in granting its consent and a response to a request for such consent shall not be unreasonably delayed or conditioned. If a request is received in writing by Landlord or Tenant for a consent or approval required under this Lease or for information to which the party making such request shall be entitled, the party receiving such request shall act with reasonable promptness thereon and shall not unreasonably delay notifying the party making such request as to the granting or withholding of such consent or approval or furnishing to such party the information requested. Except where it is specifically provided in this Lease that Landlord’s consent shall not be unreasonably withheld, whenever Landlord’s consent or approval shall be required hereunder for any matter, the decision as to whether or not to consent to or approve the same shall be in the sole discretion of Landlord.

Section 28.2  No Damages. Tenant hereby waives any claim for damages against Landlord which it may have based upon any assertion that Landlord has unreasonably withheld or unreasonably delayed any consent that, pursuant to specific provisions of this Lease, is not to be unreasonably withheld or otherwise to act reasonably in the performance of Landlord’s Obligations, except where Landlord has withheld such consent due to Landlord’s bad faith or in an arbitrary and capricious manner (as determined by a court of competent jurisdiction after all permitted appeals taken). In any such case, Tenant’s sole remedy shall be an action or proceeding to enforce any such provision or for specific performance, injunction or declaratory judgment. Tenant agrees that if Tenant shall request such a consent from Landlord and Landlord shall fail or refuse to give such consent or shall delay the giving of such consent, Tenant shall not be entitled to any damages for such withholding or delay, except where Landlord has withheld such consent due to Landlord’s bad faith or in an arbitrary and capricious manner (as determined by a court of competent jurisdiction after all permitted appeals taken).

Section 28.3  Deemed Consent. (a) Except as set forth in Section 28.3(b) hereof, whenever it is provided in this Lease that Landlord shall respond to Tenant’s request for Landlord’s consent within a specified period of time, Landlord’s consent shall be deemed given if Landlord shall have not responded to such request within such specified period, provided that Tenant’s request shall contain the following notice in bold and capitalized type:

YOUR CONSENT TO THE [DESCRIBE REQUEST] SHALL BE DEEMED GIVEN IF YOU FAIL TO RESPOND TO THIS REQUEST WITHIN [SPECIFIED PERIOD] FROM THE DATE OF YOUR RECEIPT OF THIS NOTICE.

Whenever the period of time for Landlord to respond to Tenant’s request for Landlord’s consent is not specified, such period of time shall be deemed to be twenty-three (23) Business Days from receipt of Tenant’s notice requesting such consent, and Landlord’s consent shall be deemed given if Landlord shall have not responded to such request within such twenty-three Business Day period, provided that Tenant’s request shall contain the aforementioned notice, appropriately modified. The provisions of this Section 28.3(a) shall not apply to consents covered by Section 28.3(b) hereof or to any other provision of this Lease that specifically

131

provides for additional or other conditions for the granting of Landlord’s deemed consent. Notwithstanding anything to the contrary in the foregoing, if within the period specified for Landlord to respond to Tenant’s consent request Landlord makes a reasonable request to Tenant for additional information regarding the subject matter of such consent request, the period of time for Landlord to respond to Tenant’s request shall not commence until Landlord receives the requested information.

(b)    With respect to Tenant’s requests for Landlord’s consents required under Sections 9.5, 9.6 or 13.1 or this Article XXVIII, the following shall apply: Whenever the period of time for Landlord to respond to Tenant’s request for Landlord’s consent is not specified, Tenant’s request for Landlord’s consent shall contain the following notice in bold and capitalized type:

THIS CONSENT REQUEST IS SUBJECT TO THE “DEEMED CONSENT” PROVISIONS OF SECTION 28.3(B) OF THE LEASE.

If Landlord fails to respond to Tenant’s request within twenty-three (23) Business Days from receipt of Tenant’s notice requesting Landlord’s consent, or Landlord fails to make a reasonable request for additional information related thereto within such thirty-day period and thereafter to respond to such request within twenty-three (23) Business Days after written submission of such additional information as Landlord shall have reasonably requested, Tenant shall have the right to give Landlord a reminder notice, which reminder notice shall contain the following caption in bold and capitalized type:

YOUR CONSENT TO THE [DESCRIBE REQUEST] SHALL BE DEEMED GIVEN IF YOU FAIL TO RESPOND TO THIS REQUEST WITHIN FIVE (5) BUSINESS DAYS FROM THE DATE OF YOUR RECEIPT OF THIS NOTICE.

If Landlord fails to grant or deny the requested consent within five (5) Business Days after its receipt of such reminder notice, Landlord’s consent thereof shall be deemed given. Whenever in the above-enumerated provisions of this Lease the period of time for Landlord to respond to Tenant’s request for Landlord’s consent is specified, the foregoing provisions of this Section 28.3(b) shall apply, except that all references above to twenty-three (23) Business Days shall be replaced by the period of time so specified.

132

ARTICLE XXIX
NON-DISCRIMINATION AND AFFIRMATIVE ACTION

Section 29.1  Incorporation by Reference. To the extent it pertains to the Common Elements and to the Demised Premises, the provisions set forth on Exhibit O attached hereto are incorporated herein as if fully set forth herein.

133

ARTICLE XXX
REPRESENTATIONS, WARRANTIES AND COVENANTS, AND OTHER AGREEMENTS

Section 30.1  Representations and Warranties.

(a)    Tenant’s Representations and Warranties. Tenant represents and warrants to Landlord that as of the date hereof:

(i)            Tenant is a limited liability company duly formed, validly existing and in good standing under the laws of the State of New York and has full power and authority to conduct its business as presently conducted and to enter into this Lease and the terms, provisions, covenants and obligations of Tenant as set forth in the Lease are legally binding on and enforceable against Tenant;

(ii)           the execution, delivery and performance of this Lease do not and will not (A) violate or conflict with the Constitutive Documents of Tenant, (B) violate or conflict with any judgment, decree or order of any court applicable to or affecting Tenant, (C) breach the provisions of, or constitute a default under, any contract, agreement, instrument or obligation to which Tenant is a party or by which Tenant is bound, or (D) violate or conflict with any law or governmental regulation or permit applicable to Tenant;

(iii)          Exhibit P attached hereto correctly sets forth the identity of the members of Tenant and the holders of the direct equity interests in such members; none of Tenant’s members, partners, shareholders, or members, partners or shareholders thereof, or officers, are Prohibited Persons; and

(iv)          Tenant has made available to Landlord true and complete copies of the Constitutive Documents, and such Constitutive Documents are in full force and effect, and have not been replaced, amended, modified or terminated.

(b)    Landlord’s Representations and Warranties. Landlord represents and warrants to Tenant that as of the date hereof Landlord is duly organized and validly existing under the laws of New York and has full power and authority to conduct its business as presently conducted and to enter into this Lease and the terms, provisions, covenants and obligations of Landlord as set forth in the Lease are legally binding on and enforceable against Landlord;

(c)    Acknowledgment of No Other Representations or Warranties. (i) Tenant acknowledges that, except for the representations contained in this Lease, in the other Project Documents and in any other documents executed contemporaneously with this Lease (A) no representations, statements or warranties, express or implied, have been made by, or on behalf of, 42DP, ESDC, NYCEDC or the City with respect to the Demised Premises or the Common Elements or the transaction contemplated by this Lease, the status of title to the Demised Premises or the Common Elements, the physical condition thereof, the tenants and occupants thereof, the zoning or other laws, regulations, rules and orders applicable thereto or the use that may be made of the Demised Premises or the Common Elements, (B) Tenant has relied on no such other representations, statements or warranties, and (C) none of Landlord, ESDC,

134

NYCEDC or the City in no event whatsoever shall be liable for any latent or patent defects in the Demised Premises or the Common Elements.

(ii)           Landlord acknowledges that, except for the representations and warranties contained in Section 30.1(a) hereof, the balance of the Lease, in the other Project Documents and in any other documents executed contemporaneously with this Lease, (A) no representations, statements or warranties, express or implied, have been made by, or on behalf of, Tenant with respect to the Demised Premises or the Common Elements or the transaction contemplated by this Lease, and (B) Landlord has relied on no such representations, statements or warranties.

Section 30.2  Possession. It is not a condition of this Lease that Landlord deliver full or partial Possession.

Section 30.3  Covenants of Tenant. In addition to any other covenants of Tenant set forth in this Lease, Tenant hereby agrees and covenants to: make available to the Public Parties, promptly upon execution thereof but not later than ten (10) days after execution: (i) any amendments to Tenant’s Constitutive Documents and (ii) any Operative Agreements and any amendments thereto. Subject to Section 32.2 hereof, any amendments to Tenant’s Constitutive Documents and the Operative Agreements shall be subject to review and the reasonable approval by the Public Parties, within thirty (30) days of the Public Parties’ gaining access thereto, solely to confirm (A) compliance with the transfer provisions set forth in Article XIII hereof, (B) the composition and identify of Tenant, and (C) compliance with Sections 30.1(a)(ii) and 30.1(a)(iv) hereof; and

Section 30.4  Public Amenity. (a) Generally. As an express condition to the execution of the Project Documents, Tenant agrees (at its sole cost and expense) to construct, finance, complete, operate and maintain a public amenity within the Improvements that will provide a significant public benefit within the objectives of the ▇▇▇▇ ▇▇▇▇▇▇ Project (the “Public Amenity”). Landlord agrees that the construction, completion, operation and maintenance of the Public Amenity Space in accordance with the terms and conditions of this Section 30.4 shall fulfill Tenant’s obligations with respect to the Public Amenity. Tenant agrees and covenants that Tenant’s failure to construct, complete, open and maintain the Public Amenity during the PA Obligation Term in accordance with this Lease and the DUO shall be a default hereunder.

(b)    Defined Terms.

(i)            “Auditorium” means that portion of the Improvements designated as the “Auditorium” on the schematic design plan numbered A 1001 on Exhibit I-1 attached to the Initial Ground Lease.

(ii)           “Event” means any date on which a formally scheduled event takes place in the Auditorium or the Gallery; provided, however, that (A) any such event utilizing both the Auditorium and the Gallery at the same time shall constitute one (1) Event and (B) so long as they are not related in subject matter and not intended to serve the same audience, up to two (2) Events taking place on the same day shall constitute separate Events.

135

(iii)          “Gallery” means that portion of the Improvements designated as the “Gallery” on the schematic design plan numbered A 1001 on Exhibit I-1 attached to the Initial Ground Lease.

(iv)          “NFP Event” means an Event: (A) sponsored by, organized by or primarily serving, a NFP User; and (B) for which Tenant charges not more than the PA NFP Operating Costs.

(v)           “NFP Event Shortfall” means, for any PA Year, the positive difference (if any) between: (A) the number of NFP Events required by Section 30.4(d)(i) hereof; and (B) the number of NFP Events actually occurring.

(vi)          “NFP User” means: (A) a public charity organized under Section 501(c)(3) of the Income Tax Code; and (B) any other bona fide not-for-profit entity that is approved in advance by Landlord in Landlord’s sole discretion, which approval shall be granted or withheld within five (5) Business Days of Landlord’s receipt of a request for such approval from Tenant (each entity listed on Exhibit Q hereof, for so long as such entity remains a public charity organized under Section 501(c)(3) of the Income Tax Code or a bona fide not-for-profit entity, is hereby deemed approved by Landlord). Tenant shall make such request in writing not later than fifteen (15) Business Days prior to the proposed use by such entity of the Public Amenity Space.

(vii)         “PA Effective Date” means the date that is the earlier to occur of: (A) the PA Opening Date; and (B) the fifteen (15) month anniversary of the Substantial Completion Date.

(viii)        “PA NFP Operating Costs” means the reasonable and actual operating costs incurred (i.e., not including any ▇▇▇▇-ups, fees, overhead charges or other addons) by Tenant in respect to an NFP Event, including, if applicable and provided by Tenant: (A) stagehand labor; (B) the Pro Rata Cost of a production coordinator; (C) front-of-house labor (e.g., ushers, ticket takers, concessionaires); (D) the Pro-Rata Cost of non-routine maintenance labor (e.g., extra janitors); (E) stage door labor (e.g., security guard, lobby reception during off hours); (F) utilities (e.g., theatrical lighting and/or air conditioning); (G) house programs; (H) box office labor; and (I) production expenses (e.g., rental from of unaffiliated Persons of piano, sound system, lights, gels, theatrical drapes, microphones, podiums, chairs, tables).

(ix)           “PA Obligation Term” means the period from the PA Effective Date through the PA Obligation Termination Date.

(x)            “PA Obligation Termination Date” means, subject to Section 30.4(d)(i)(B) hereof, the date that is the last day of the tenth (10th) full calendar year following the PA Effective Date.

(xi)           “PA Opening Date” means the first date upon which the Public Amenity is completed and operating in accordance with Legal Requirements and this Section 30.4 for general use (but not including Tenant’s use of the Public Amenity Space for up to ten (10) single-day events associated with the inauguration of the Improvements or the Public Amenity Space).

136

(xii)          “PA Year” means: (A) the period from the PA Effective Date through December 31 of the calendar year in which the PA Effective Date occurs (such period, the “PA Effectiveness Stub Period”); and (B) each calendar year following the end of the PA Effectiveness Stub Period through the PA Obligation Termination Date.

(xiii)         “Pro Rata Cost” means the portion of the cost of the identified person(s) allocated to the NFP Event on the basis of the amount of such person’s overall time devoted to the NFP Event.

(xiv)        “Public Amenity Space” means the PA Retail Space, the Auditorium and the Gallery.

(xv)         “Venue” means either the Auditorium or the Gallery.

(c)    Public Amenity Completion Date. The PA Opening Date shall occur on or prior to the date that is the fifteen (15) month anniversary of the Substantial Completion Date.

(d)    Operating Requirements. In additional to any other operating standards required under this Lease in respect of the Improvements (including without limitation those imposed by Legal Requirements or the DUO), the Public Amenity shall be operated in accordance with the following provisions:

(i)            NFP Events: (A) Subject to clause (B) of this Section 30.4(d)(i), at least 104 NFP Events shall occur in the Public Amenity Space each PA Year, and at least 50% of such NFP Events shall take place (in whole or in substantial part) in the Auditorium; provided, however, that (1) during the PA Effectiveness Stub Period, the total NFP Events required shall be the product of [a] 35 and [b] a fraction, the numerator of which is the number of days in the PA Effectiveness Stub Period and the denominator of which is 365 and at least 50% of such NFP Events shall take place (in whole or in part) in the Auditorium, (2) during the first full PA Year, a total of 35 NFP Events shall be required and at least 50% of such NFP Events shall take place (in whole or in part) in the Auditorium, and (3) during the second full PA Year, a total of 70 NFP Events shall be required and at least 50% of such NFP Events shall take place (in whole or in part) in the Auditorium. NFP Users that are Related Entities of Tenant or any Subtenant may not account for more than 30% of the NFP Event requirement for any PA Year.

(B)     Notwithstanding any provision of this Lease to the contrary, in the event that an NFP Event Shortfall shall occur for any PA Year, then:

(1)           if such NFP Event Shortfall is less than or equal to 10% of the total NFP Event requirement for such PA Year, the number of Events in such NFP Event Shortfall shall be added to the number of NFP Events required for the next-occurring PA Year; and

(2)           upon the first occurrence of an NFP Event Shortfall in excess of 10% of the NFP Event requirement for a given PA Year, the PA Obligation Termination Date shall be extended by two (2) years (such extension, the “First PA Extension”), during which First PA Extension: (i) at least 104 NFP Events shall take place in the Public Amenity Space during each such additional PA Year and at least 50% of such NFP

137

Events shall take place (in whole or in part) in the Auditorium, (ii) Tenant shall make up any NFP Event Shortfall; (iii) NFP Users shall be permitted to use the Public Amenity Space for no charge (including no charge for PA NFP Operating Costs); and (iv) the PA PILOT Reduction shall be unavailable. In the event that there is an NFP Event Shortfall at the end of the First PA Extension, the PA Obligation Termination Date shall be extended by two (2) additional years (such extension, the “Second PA Extension”), during which Second PA Extension: (x) the NFP Event requirement shall equal the number that is twice such NFP Event Shortfall; (y) NFP Users shall be permitted to use the Public Amenity Space for no charge (including no charge for PA NFP Operating Costs) until such NFP Event requirement is fulfilled; and (z) the PA PILOT Reduction shall be unavailable. In the event that there is an NFP Event Shortfall at the end of the Second PA Extension, PILOT on the entire Public Amenity Space shall be calculated on the basis of the Retail PILOT Schedule until the number of NFP Events comprising such NFP Event Shortfall shall have occurred.

(C)     Tenant shall use its good faith efforts to make the Public Amenity Space available for use by NFP Users that primarily serve the performing arts, such as those NFP Users listed on Exhibit Q attached hereto, but Tenant shall have no liability in the event that such NFP Users determine not to so use the Public Amenity Space. Tenant shall, at least on each January 1 and July 1 during the PA Obligation Term, provide to those NFP Users listed on Exhibit Q attached hereto, a list of those dates that the Public Amenity Space is then available for use by NFP Users in the upcoming six (6) months (i.e., those dates for which there are then no confirmed bookings).

(ii)           Fees for NFP User Use of Public Amenity Space: Tenant shall charge each NFP User not more than the applicable PA NFP Operating Costs for such NFP User’s use of Public Amenity Space.

(iii)          Reporting Requirements: Tenant shall submit a report to Landlord within thirty (30) days after the end of each PA Year setting forth for such PA Year: (A) the number of Events; (B) the number of NFP Events; (C) the portion of the Public Amenity Space (i.e., Gallery and/or Auditorium) utilized for each such Event and NFP Event; (D) the sponsor/user and purpose of each such Event and NFP Event; and (E) the NFP Shortfall, if any.

(e)    Effect of Public Amenity Space on PILOT.

(i)            Tenant shall pay to Landlord full Office PILOT in respect of the Auditorium and the Gallery, except that during the PA Obligation Term (but not during the First PA Extension or thereafter) the PILOT for each PILOT Year shall be reduced by the number (such number, the “PA PILOT Reduction”) equal to the product of (1) the PILOT due for the Square Feet comprising such particular Venue for such PILOT Year multiplied by (2) a fraction, the numerator of which is the number of NFP Events occurring in such Venue during such PILOT Year, and the denominator of which is 365. It is acknowledged and agreed that a single NFP Event utilizing both the Auditorium and the Gallery at the same time would constitute a separate use of each such Venue only for the purpose of calculating the PA PILOT Reduction.

138

(ii) For accounting purposes, the Taxable Square Feet of each of the Auditorium and the Gallery shall be computed separately, and PILOT calculated in respect of each of the Auditorium and the Gallery shall be based on such Square Feet.

(iii) Tenant shall pay to Landlord full Retail PILOT in respect of any PA Retail Space.

Section 30.5 Other Agreements.

(a)       Construction Guaranties. [INTENTIONALLY OMITTED].

(b)       Project Participants. Tenant covenants to inform Landlord whenever the identity of a Project Participant is first identified or changes. All Project Participants shall be subject to the reasonable approval of Landlord, in accordance with the requirements set forth in this Section 30.5(b) and in Article I hereof in respect of permissible Project Participants. Tenant shall not at any time be a Person that is not a Permitted Developer; provided, however, that Landlord hereby approves Tenant and Tenant’s Control Affiliates (as constituted on the date hereof) as permissible Project Participants.

139

ARTICLE XXXI
PERMITTED FINANCING

Section 31.1 Recognized Mortgage.

(a)       Right of Tenant. Tenant, from time to time during the term of this Lease, may make one or more Recognized Mortgages, provided that:

(i) Tenant or the Recognized Mortgagee shall deliver to Landlord within seven (7) Business Days after the execution thereof, in the manner herein provided for the giving of notice to Landlord, a copy of the mortgage financing commitment and any amendments thereto and a true copy of such Recognized Mortgage and of any subsequent modification, amendment or assignment thereof and recorded copies thereof and shall notify Landlord of the address of the Recognized Mortgagee to which notices may be sent;

(ii) such Recognized Mortgage shall contain provisions permitting the disposition and application of insurance proceeds and condemnation awards in a manner consistent with the provisions of this Lease;

(iii) such Recognized Mortgage shall specifically include provisions requiring written notice to Landlord of any defaults thereunder, permitting Landlord to cure any such defaults and to be subrogated to the rights of the Recognized Mortgagee to the extent thereof and prohibiting any modification, amendment, extension or consolidation of the Recognized Mortgage without delivering a copy thereof to Landlord; and

(iv) no Recognized Mortgage shall extend to, affect, or be a lien or encumbrance upon, the estate and interest of Landlord in the Demised Premises or the Common Elements, in this Lease or any part thereof and each Recognized Mortgage shall expressly provide that at all times it shall be subject and subordinate to this Lease.

(b)       Payment of Indebtedness. Any modification, amendment, extension or consolidation of a Recognized Mortgage shall be permitted only if the same shall comply in all respects with the requirements of Section 31.1(a) hereof.

(c)       Notices. In the event that Tenant’s interest under this Lease is subject to any Recognized Mortgage, Landlord will give to the Recognized Mortgagee a copy of each notice of default from Landlord to Tenant hereunder at the time of giving such notice to Tenant, and Landlord will give to the Recognized Mortgagee a copy of each notice received by Landlord of any rejection of this Lease by any trustee in bankruptcy of Tenant. No notice of default hereunder from Landlord shall be effective against any Recognized Mortgagee unless and until a copy of such notice has been given to such Recognized Mortgagee in the manner provided in this Lease for the giving of notices.

(d)       Mortgage Recording Tax. Subject to Section 3.4 hereof, in no event shall Tenant, or any party claiming by, through or under Tenant, claim any exemption from Mortgage Recording Tax with respect to a Recognized Mortgage.

140

(e)       Defaults of Other Tenants. Landlord agrees that Tenant and/or the Condominium Association, as applicable, shall be deemed a Recognized Mortgagee hereunder with respect to any lien arising by virtue of Tenant’s or the Condominium Association’s exercise of its right to cure the default of another tenant under a Severance Sublease or as permitted under Section 2 of Article XXI of the Condominium Declaration. As such, Tenant and/or the Condominium Association, as applicable, shall enjoy all of the rights of a Recognized Mortgagee hereunder, with a lien priority determined in accordance with applicable Legal Requirements and the Condominium Declaration.

Section 31.2 Right and Time to Cure. (a) Each Recognized Mortgagee shall have a period of (i) ten (10) days more, in the case of any default in the payment of Charges, and (ii) thirty (30) days more, in the case of any other default of Tenant’s Obligations, than is given Tenant under the provisions of this Lease, to remedy such a default, which periods shall begin to run upon the giving of the notice to the Recognized Mortgagee specifying such default. In addition, with respect to defaults for which possession of the Demised Premises is required to cure such default, or in the case of defaults that are not reasonably susceptible of being cured by a Recognized Mortgagee (such as the bankruptcy of Tenant), the period to remedy such defaults shall be extended for such time as is necessary for a Recognized Mortgagee to promptly institute foreclosure proceedings, and thereafter, subject to Unavoidable Delay, continuously prosecute the foreclosure proceedings with reasonable diligence and continuity to obtain possession and, upon obtaining possession of the Demised Premises, promptly commence to cure the default (other than a default which is not reasonably susceptible of being cured by a Recognized Mortgagee) and prosecute such cure to completion with diligence and continuity, subject to Unavoidable Delay. With respect to defaults not reasonably susceptible to cure by the Recognized Mortgagee, the completion of such foreclosure proceeding shall be deemed to remedy such defaults.

(b)       No Recognized Mortgagee shall be entitled to the additional remedy periods provided in clause (ii) of Section 31.2(a) hereof unless within thirty (30) days after the giving of the notice referred to in Section 31.2(a) hereof such Recognized Mortgagee delivers to Landlord a written commitment to cure or cause to be cured such defaults (other than a default which is not reasonably susceptible of being cured by a Recognized Mortgagee). At any time within thirty (30) days after the delivery of the aforementioned commitment, such Recognized Mortgagee may notify Landlord, in writing, that it no longer intends to cure a default, and, in such event the liability of such Recognized Mortgagee for the period prior to delivery of such notice shall be limited as set forth in Section 17.4 hereof as if “Recognized Mortgagee” were “Tenant” and the Recognized Mortgagee shall have no further liability under such commitment from and after the date on which it delivers such notice to the Landlord. Thereupon the Recognized Mortgagee shall have no further right to cure and, subject to Section 31.7 hereof, Landlord shall have the right to terminate this Lease and to take any other action permitted under this Lease it deems appropriate by reason of any Event of Default, and, upon any such termination, the provisions of Section 31.6 hereof shall apply.

Section 31.3 Notice to Landlord. Notwithstanding any of the provisions of this Article XXXI, Landlord shall not be required to comply with any of the provisions of this Article XXXI unless Landlord has received prior written notice of the existence of the Recognized Mortgage and such Recognized Mortgage remains a recorded lien on the Demised

141

Premises (or other satisfactory evidence of the lien of the Recognized Mortgage), together with copies of the Recognized Mortgage and the name and address of the Recognized Mortgagee to which notices shall be sent and, if such address changes from time to time, the new address of such Recognized Mortgagee to which notices may be sent.

Section 31.4 Acceptance of Performance. Landlord shall accept performance by a Recognized Mortgagee of any covenant, condition or agreement on Tenant’s part to be performed hereunder with the same force and effect as though performed by Tenant.

Section 31.5 Other Defaults. While a Recognized Mortgagee is exercising any right to cure Tenant’s defaults pursuant to Sections 31.2 and 31.4 hereof, Landlord shall not be precluded from exercising any rights or remedies it may have with respect to other defaults of Tenant’s Obligations that may arise from time to time hereunder, subject in each case to the Recognized Mortgagee’s rights to cure such other defaults pursuant to said Sections 31.2 and 31.4 hereof.

Section 31.6 Execution of New Lease.

(a)       Notice of Termination. If this Lease is terminated by reason of an Event of Default, Landlord shall, as soon as practicable thereafter, give notice of such termination to each Recognized Mortgagee. Such notice shall set forth in reasonable detail a description of all defaults, to the actual knowledge of Landlord, in existence at the time this Lease was terminated.

(b)       Request for New Lease. If, within twenty-three (23) Business Days after the giving of the notice referred to in Section 31.6(a) hereof, a Recognized Mortgagee requests a new lease, then, subject to the provisions of Sections 31.6(c) and 31.7 hereof, within twenty-three (23) Business Days after Landlord has received such request, Landlord shall execute and deliver a new lease of the Demised Premises and Tenant’s undivided interest in the Common Elements for the remainder of this Lease to the Recognized Mortgagee, or to any designee or nominee of the Recognized Mortgagee which (i) is not a Prohibited Person or Related Entity of Tenant and (ii) agrees to assume the Obligations of Tenant hereunder. The new lease shall have the same priority of lien as this Lease and, with the exception of the name of the tenant, shall contain the same covenants, conditions, limitations and agreements contained in this Lease, but Landlord shall not be deemed to have represented or covenanted that such new lease shall be superior to the claims of any prior tenant, its creditors, a judicially appointed receiver or trustee for such tenant, or any other person or entity claiming priority, by operation of law or otherwise, through, under, or by virtue of the acts of, any prior tenant.

(c)       Conditions Precedent to New Lease. The provisions of Section 31.6(b) hereof notwithstanding, Landlord is not obligated to enter into a new lease with a Recognized Mortgagee: (i) unless the Recognized Mortgagee pays to Landlord, concurrently with the execution and delivery of such new lease, all Charges due under this Lease up to and including the date of the commencement of such new lease and all expenses, including reasonable attorneys’ fees and disbursements and court costs, incurred by Landlord in connection with (A) the enforcement of Landlord’s rights and remedies with respect to all defaults or Events of Default in existence at the time of the termination of the Lease (to the extent set forth in the notice to be delivered pursuant to Section 31.6(a) hereof), (B) the termination of this Lease and

142

(C) the preparation of such new lease; (ii) unless Landlord concurrently receives an assumption in writing by such Recognized Mortgagee, its designees or nominee of Tenant’s obligations, if any, under the Project Documents; and (iii) if Landlord is not then allowed to enter into such new lease by order of a court of competent jurisdiction. To the extent not set forth in the notice given to the Recognized Mortgagee pursuant to Section 31.6(a) hereof, Landlord agrees to notify the Recognized Mortgagee, concurrently with the giving of such new lease, of any unperformed Obligations of, and/or defaults by, Tenant, which, to the best of Landlord’s knowledge, then exist.

(d)       No Waiver of Default. The execution of a new lease shall not constitute a waiver of any default existing immediately before the termination of this Lease, except for defaults under Sections 14.2(d), 14.2(e), and 14.2(f) hereof, and the tenant under the new lease shall cure, within the longer of (i) the period of cure remaining to the Recognized Mortgagee pursuant to Section 31.2 hereof or (ii) the applicable periods set forth in the provision of such new lease relating to events of default thereunder (which applicable periods shall commence with the execution and delivery of the new lease or, if notice of such defaults had not then been given, upon the giving of such notice), all other defaults existing under this Lease immediately before its termination of which such tenant has been or, to the extent any such defaults were not then known by Landlord, is thereafter given notice; provided, however, with respect to any default under Sections 14.2(g), 14.2(h) and 14.2(i) hereof existing immediately before its termination, the period of cure shall be such time as is necessary for the new tenant to promptly commence to cure such default following execution and delivery of the new lease and to prosecute such cure to completion with diligence and continuity, subject to Unavoidable Delay. Notwithstanding anything to the contrary, if after the Recognized Mortgagee requests a new lease pursuant to this Section 31.6 the Recognized Mortgagee is given notice of a default existing before the termination of this Lease and which default was not noticed to the Recognized Mortgagee prior to the date of such request, then at any time within ten (10) days after such notice of default is given, the Recognized Mortgagee may rescind such request in writing to Landlord, or if the new lease has then already been executed and delivered, the new tenant may relinquish possession of the Demised Premises and cancel the new lease by notice to Landlord. Thereupon, Landlord shall have the right, subject to Section 31.7 hereof, to terminate the new lease, and the Recognized Mortgagee shall have no further right to a new lease.

(e)       Assignment of Proceeds. Concurrently with the execution and delivery of a new lease pursuant to the provisions of Section 31.6(b) hereof, Landlord shall assign to the tenant named therein all of its right, title and interest in and to monies (including insurance proceeds and condemnation awards), if any, then held by, or payable to, Landlord that Tenant would have been entitled to receive but for the termination of this Lease or the occurrence of an Event of Default, other than any such amounts theretofore applied under this Lease to the discharge of Tenant’s Obligations to Landlord hereunder, subject to the rights, if any, of the prior Tenant therein and to the provisions of such new lease.

(f)        No Obligation to Deliver Possession. Nothing contained herein shall be deemed to obligate Landlord to remove any liens, encumbrances or other defects in title to the Property or to deliver possession of the Demised Premises or the Common Elements to the tenant under any such new lease, except for the delivery of possession free and clear of the

143

claims of persons or entities claiming through or under Landlord, other than Tenant and those claiming by, through or under Tenant.

(g)       Assignment of Subleases. Upon the execution and delivery of a new lease pursuant to the provisions of this Section 31.6, all Subleases that may have been assigned to Landlord and all leases that Landlord makes directly shall be assigned and transferred, without recourse, to the tenant named in the new lease. Between the date of termination of this Lease and the date of the execution and delivery of the new lease, if a Recognized Mortgagee has timely requested a new lease as provided in this Section 31.6, Landlord shall not materially modify or amend, or cancel, any Sublease or accept any cancellation, termination or surrender thereof (unless such termination occurs as a matter of law upon the termination of this Lease or pursuant to the express terms of the Sublease) or enter into any new Sublease without the consent of the Recognized Mortgagee or such designee or nominee.

(h)       Credits. Any rent credits to which Tenant is entitled under this Lease and which have not been exhausted at the time this Lease is terminated, and interest thereon shall inure to the benefit of the tenant under any new lease granted pursuant to Section 31.6(b) hereof.

(i)        Continuation of this Lease in Lieu of Entering into New Lease.

(i) Termination Notice. A Recognized Mortgagee shall have the right, within fifteen (15) days after the delivery of the Termination Notice to such Recognized Mortgagee pursuant to Section 31.6(a) hereof, to elect to continue this Lease in lieu of requesting a new lease by notice to Landlord, subject to the further conditions of this Section 31.6(i). Such right may be exercised by a Recognized Mortgagee, or any designee or nominee thereof which satisfies the conditions set forth in clauses (i) and (ii) of this Section 31.6(i).

(ii) Election to Continue Lease. If a Recognized Mortgagee elects to continue this Lease by notice given to Landlord within such l5-day period (the “Continuation Notice”), then effective upon the delivery of such notice, Tenant shall be deemed to have assigned to such Recognized Mortgagee, or any such designee or nominee thereof, as the case may be, all of Tenant’s right, title and interest in and to this Lease and the leasehold estate in the Demised Premises and Tenant’s undivided interest in the Common Elements created hereunder, including the Subleases and security deposits thereunder referred to Section 31.6(i)(vii), and Tenant shall, at Landlord’s request, execute and deliver to Landlord and such Recognized Mortgagee such instruments of assignment and related transfer tax documents as Landlord and such Recognized Mortgagee may request (in form reasonably satisfactory to Landlord and such Recognized Mortgagee) to evidence such assignment. If Tenant fails to execute and deliver any such instrument of assignment or related transfer tax documents, such Recognized Mortgagee shall be entitled to do so on Tenant’s behalf, and Tenant hereby appoints such Recognized Mortgagee as its attorney-in-fact, which appointment shall be deemed to be coupled with an interest and is irrevocable, for the sole purpose of executing and delivering such assignment and any transfer tax documents. The execution and delivery of such instruments, however, shall not be required to effect the assignment of this Lease to such Recognized Mortgagee or such nominee or designee.

144

(iii) Conditions Precedent to New Lease. The provisions of Sections 31.6(i)(i) and 31.6(i)(ii) hereof notwithstanding, a Recognized Mortgagee shall have no right to continue this Lease unless the Recognized Mortgagee pays to Landlord, concurrently with the delivery of the Continuation Notice, all amounts due to Landlord under this Lease up to and including the date of the Continuation Notice and all expenses, including reasonable attorneys’ fees and disbursements and court costs, incurred by Landlord in connection with (1) the enforcement of Landlord’s rights and remedies with respect to all defaults or Events of Default in existence at the time of the Termination Notice, and (2) the review of any assignments and other instruments or documents prepared in connection with the Recognized Mortgagee’s election, nor shall the Recognized Mortgagee have the right to such new lease if by order of a court of competent jurisdiction the parties are not entitled to continue this Lease and effect the assignment thereof to the Recognized Mortgagee. To the extent not set forth in the notice given to the Recognized Mortgagee pursuant to Section 31.6(a) hereof, Landlord agrees to notify the Recognized Mortgagee, concurrently with the delivery of such new lease, of any unperformed Obligations of, and/or defaults by, Tenant, which, to the best of Landlord’s knowledge, then exist.

(iv) No Waiver of Default. The assignment of this Lease pursuant to this Section 31.6(i) shall not constitute a waiver of any default existing immediately before the termination of this Lease, except for defaults under Sections 14.2(d), 14.2(e), and 14.2(f) hereof, and the tenant under the assigned Lease shall cure all other defaults existing under this Lease immediately before its assignment of which the Recognized Mortgagee has been given notice of or, to the extent any such defaults were not then known by Landlord, is thereafter given notice. Such cure shall be accomplished within the longer of (A) the period of cure remaining to the Recognized Mortgagee pursuant to Section 31.2 hereof or (B) the applicable periods set forth in Section 14.2 (Events of Default) of this Lease (which applicable periods shall commence with the execution and delivery of the assignment of this Lease (or upon the deemed assignment of this Lease, as applicable) for each such default of which the Recognized Mortgagee received notice prior to the delivery of the Continuation Notice or, if notice of any such default had not then been given until after delivery of the Continuation Notice, upon the delivery of such notice); provided, however, with respect to any default under Sections 14.2(g), 14.2(h) and 14.2(i) hereof existing immediately before its assignment, the period of cure shall be such time as is necessary for the assignee to promptly commence to cure such default following the assignment of this Lease thereto and to prosecute such cure to completion with diligence and continuity, subject to Unavoidable Delay. Notwithstanding anything to the contrary, if after the Recognized Mortgagee delivers a Continuation Notice pursuant to Section 31.6(i)(ii) the Recognized Mortgagee is given notice of a default existing before the Continuation Notice and which default was not noticed to the Recognized Mortgagee prior to the date of such Continuation Notice, then at any time within ten (10) days after such notice is given the assignee may relinquish possession of the Property and cancel this Lease by notice to Landlord. Thereupon, Landlord shall have the unrestricted right to terminate this Lease, subject to Section 31.7 hereof, without offering the Recognized Mortgagee a new lease pursuant to Section 31.6(a) and 31.6(b) hereof, and the Recognized Mortgagee shall have no further rights to a new lease thereunder.

(v) Assignment of Proceeds. Concurrently with the assignment of this Lease pursuant to the provisions of this Section 31.6(i), Landlord shall assign to the assignee of this Lease all of its right, title and interest in and to monies (including insurance proceeds and

145

condemnation awards), if any, then held by, or payable to, Landlord that Tenant would have been entitled to receive but for the occurrence of an Event of Default and the expiration of any cure periods, other than any such amounts theretofore applied under this Lease to the discharge of Tenant’s Obligations to Landlord hereunder, subject to the rights, if any, of the prior Tenant therein.

(vi) No Obligation to Deliver Possession. Nothing contained herein shall be deemed to obligate Landlord to remove any liens, encumbrances or other defects in title to the Property or to deliver possession of the Demised Premises to the assignee under any such assignment, except for the delivery of possession free and clear of the claims of persons or entities claiming through or under Landlord, other than Tenant and those claiming by, through or under Tenant.

(vii) Assignment of Subleases. Upon the assignment of this Lease pursuant to the provisions of this Section 31.6(i), all Subleases shall concurrently therewith be assigned and transferred, together with any security or other deposits held by Tenant and not applied under such Subleases.

(viii) No Extension of Cure Rights in Favor of Tenant. Notwithstanding anything to the contrary contained herein and without limiting the assignee’s rights under Section 31.6(i)(iv) above, the rights granted under this Section 31.6(i) are not intended to, and shall not, extend any periods granted to Tenant under Section 14.2 hereof to cure any Event of Default occurring prior to the delivery of any such Termination Notice.

(ix) Effect of Failure to Elect to Continue Lease on Recognized Mortgagee’s Right to Request a New Lease. Notwithstanding anything to the contrary contained in this Section 31.6, if a Recognized Mortgagee fails to elect to continue this Lease within the 15-day period referred to in Section 31.6(i)(i), then, subject to Section 31.7 hereof, this Lease shall terminate effective upon the expiration of such 15-day period. Notwithstanding anything to the contrary contained in Section 31.6(b), such Recognized Mortgagee shall have fifteen (15) days after the delivery of the termination notice referred to in Section 31.6(b) hereof to request a new lease, and if such Recognized Mortgagee fails to request a new lease within such fifteen (15)-day period, then such Recognized Mortgagee’s rights to enter into a new lease shall terminate.

Section 31.7 Recognition of Most Senior Recognized Mortgagee. If more than one Recognized Mortgagee has exercised any of the rights afforded by this Article XXXI, then, unless otherwise provided in the Recognized Mortgage most senior in lien (or otherwise acknowledged in writing by the holder thereof) or consented to by the holder thereof, only that Recognized Mortgagee, to the exclusion of all other Recognized Mortgagees, whose Recognized Mortgage is most senior in lien shall be recognized by Landlord as having exercised such right, for so long as such Recognized Mortgagee shall be exercising its rights under this Lease with respect thereto, with reasonable diligence, and thereafter, successively, the Recognized Mortgagees whose Recognized Mortgages are next most senior in lien shall be recognized by Landlord, in order of seniority, unless any such Recognized Mortgagee has designated, in writing, a Recognized Mortgagee whose Recognized Mortgage is junior in lien to exercise such right. If the parties shall not agree on which Recognized Mortgage is prior in lien, such dispute

146

shall be determined by a then current certificate of title obtained by Landlord or Tenant, at Tenant’s sole expense, issued by a title insurance company licensed to do business in the State of New York and selected by Landlord, and such determination shall bind the parties.

Section 31.8 No Rights of Other Mortgagees. A mortgagee that is not a Recognized Mortgagee shall have no rights hereunder, and Landlord shall have no obligations to any mortgagee other than a Recognized Mortgagee.

Section 31.9 Miscellaneous Mortgage Provisions.

(a)       No Liability. No holder of a Recognized Mortgage shall become liable under the provisions of this Lease unless and until such time as it becomes, and then only for so long as it remains, the owner of a leasehold estate created hereby or pursuant to Section 31.6(d) hereof; provided, however, that no Recognized Mortgagee shall be responsible for any amounts due under Section 14.1(b) hereof that accrue from and after the date that Landlord receives notice that such Recognized Mortgagee has initiated foreclosure proceedings with respect to its Recognized Mortgage.

(b)       Nominee. A Recognized Mortgagee shall have the right to assign any Recognized Mortgage held by it to a nominee controlled by, or under common control with, it, prior to and in anticipation of the foreclosure of such Recognized Mortgage, and shall not thereby lose its status as a Recognized Mortgagee unless and until such time as such nominee becomes the owner of the leasehold estate created hereby.

(c)       Foreclosure. Nothing contained herein shall be deemed to require the holder of a Recognized Mortgage to continue with any foreclosure or other proceedings, or in the event it shall otherwise acquire possession of the Demised Premises, to continue such possession.

(d)       Lease Amendments. No amendment or modification of this Lease shall be effective as against a particular Recognized Mortgagee unless a copy of the proposed amendment or modification shall have been delivered to such Recognized Mortgagee, such notice to include the statement “THIS NOTICE IS THE NOTICE OF THE RECOGNIZED MORTGAGEE’S RIGHT TO APPROVE AN AMENDMENT OF THE LEASE PURSUANT TO SECTION 31.9(d) OF THE LEASE, WHICH APPROVAL SHALL BE DEEMED GIVEN TWENTY-THREE BUSINESS DAYS AFTER RECOGNIZED MORTGAGEE’S RECEIPT OF THIS NOTICE,” and such Recognized Mortgagee shall have either: (i) approved the amendment or modification in writing or (ii) failed to disapprove the amendment or modification in writing within twenty-three (23) Business Days after receipt of a copy thereof.

Section 31.10 Delegation by Tenant. Tenant may delegate irrevocably to a Recognized Mortgagee the authority to exercise any or all of Tenant’s rights hereunder, but no such delegation shall be binding upon Landlord unless and until either Tenant or such Recognized Mortgagee shall give to Landlord an executed counterpart of the written instrument effecting such delegation. Such delegation of authority may be effected by the terms of the Recognized Mortgage itself, in which case, the service upon Landlord of an executed counterpart

147

or certified copy of such Recognized Mortgage in accordance with this Article XXXI, together with a written notice specifying the provisions thereof which delegate such authority to such Recognized Mortgagee, shall be sufficient to give Landlord notice of such delegation. In such event, Landlord shall be entitled to rely upon such delegation of authority until Landlord shall have received written notice from Tenant and such Recognized Mortgagee indicating that such delegation of authority shall have been revoked or terminated. Any provisions of this Lease which give to a Recognized Mortgagee the privilege of exercising a particular right of Tenant hereunder on condition that Tenant shall have failed to exercise such right shall not be deemed to diminish any privilege which such Recognized Mortgagee may have, by virtue of a delegation of authority from Tenant, to exercise such right without regard as to whether or not Tenant shall have failed to exercise such right.

Section 31.11 Survival. The provisions of Sections 31.6 and 31.7 hereof shall survive the termination of this Lease.

148

ARTICLE XXXII
CONDOMINIUM DOCUMENTS

Section 32.1 Condominium Conversion. [INTENTIONALLY OMITTED]

Section 32.2 Condominium Documents. (a) If Tenant shall desire to amend, modify or supplement any Condominium Document, such Person shall submit same to Landlord and, so long as such proposed amendment, modification or supplement would not, in Landlord’s reasonable opinion, affect a substantive right of any Public Party or of any party thereto to an extent that is greater than de minimis and the form of such amendment, modification or supplement is otherwise reasonably acceptable to Landlord, Landlord shall so amend, modify or supplement such Condominium Document.

(b)       It shall be Tenant’s responsibility to assure that the Condominium Documents comply with all Legal Requirements, including, without limitation, the rules and regulations of the New York State Department of Law. Landlord’s determination that the Condominium Documents conform to the provisions of this Lease shall not be, nor shall it be construed to be or relied upon by Tenant or any other Person as, a determination that the Condominium Documents comply with all Legal Requirements, including, without limitation, the rules and regulations of the New York State Department of Law.

(c)       The parties hereto acknowledge that despite Tenant covenanting hereunder to undertake specific actions and responsibilities in respect of the Common Elements, the Condominium Association (and not Tenant) controls the Common Elements. Notwithstanding Tenant’s lack of control of the Common Elements, Tenant shall perform (or cause, pursuant to the Condominium Declaration or otherwise, the Condominium Association to perform) every Tenant Obligation in respect of any portion of the Common Elements. It is expressly agreed that Tenant’s lack of control of the Common Elements shall not be deemed or construed to be evidence of a Tenant Obligation being “beyond the control” of Tenant for any purposes of this Lease and that Tenant’s failure to comply with any Tenant Obligation set forth herein shall be a default of Tenant hereunder.

149

ARTICLE XXXIII
MISCELLANEOUS

Section 33.1 Recording and Transfer Tax. Landlord and Tenant, each upon the written request of the other or of any Recognized Mortgagee, shall execute, acknowledge and deliver a memorandum of this Lease in the form set forth on Exhibit R attached hereto, and of each modification of this Lease, each in proper form for recordation. Tenant shall not record this Lease without the prior written consent of Landlord. Tenant shall be solely responsible for the timely payment of any transfer or similar taxes that may be payable as a result of this Lease, and Tenant shall indemnify the Public Parties from and against any and all Claims related thereto.

Section 33.2 Brokers.

(a)       Landlord’s and Tenant’s Representations. Each of Landlord and Tenant represents and warrants to the other that it has not dealt with any broker, finder or other party entitled to a broker’s or finder’s fee, or other commissions or compensation arising out of or in connection with the execution of this Lease, the Project Documents or any transactions relating thereto, other than Insignia/ESG, Inc. and Ascot Brokerage Ltd. (collectively, the “Brokers”) and Argent Advisors LLC (“Argent”).

(b)       Tenant’s Obligations. Tenant shall be liable for, and shall indemnify each of the Public Parties against all brokerage commissions or other compensation due to the Brokers (which compensation shall be paid pursuant to separate agreements between Tenant and such Brokers) or to any other broker, finder or other party if such broker, finder or other party alleges that it (i) has acted for, or at the direction of, Tenant, whether or not such broker, finder or other party also alleges that it has dealt with the Public Parties, or (ii) has dealt exclusively with Tenant, arising out of the execution of this Lease, the Project Documents or any transactions relating thereto.

(c)       Landlord’s Obligations. Landlord shall be liable for, and shall indemnify Tenant against all brokerage commissions or other compensation due to Argent (which compensation shall be paid pursuant to a separate agreement between Landlord and Argent).

(d)       General. Notwithstanding anything to the contrary contained in Article XVIII hereof, any party seeking indemnification under this Section 33.2 shall provide the indemnifying party with prompt service of such claim within a reasonable time after the party seeking indemnification first becomes aware of the existence thereof. If (i) the indemnifying party is Tenant, any such claim may be defended by counsel reasonably acceptable to the Public Parties (or, if insured, by counsel designated by Tenant’s insurer, as applicable), or (i) the indemnifying parties are the Public Parties, by counsel to the Public Parties. No settlement of any such claim shall be entered into unless (A) the indemnified party would have no liability as a consequence of such settlement or (B) the indemnifying party consents to such settlement.

(e)       Survival. This Section 33.2 shall survive the expiration or earlier termination of this Lease.

Section 33.3 Media Announcements. [INTENTIONALLY OMITTED]

150

Section 33.4 Relationship of Landlord and Tenant. No provision of this Lease is not to be construed to create a partnership or joint venture between the parties, it being the intention of the parties hereto only to create a landlord and tenant relationship.

Section 33.5 Person Acting on Behalf of a Party Hereunder. Either party hereunder may require the other party hereunder to provide evidence reasonably satisfactory to such party of the authority of any Person acting on behalf of the other party.

Section 33.6 Third Party Beneficiary. Nothing contained herein is intended to be for, or to inure to, the benefit of any Person other than Landlord, Tenant and Recognized Mortgagees and their respective successors and assigns, except as otherwise expressly provided in this Lease. No Person other than Landlord or the City is entitled, as a consequence of any term, condition, covenant or agreement contained in this Lease or of Tenant’s failure to observe or perform the same, to seek, claim or recover damages or any other legal or equitable remedy against Tenant.

Section 33.7 Proprietary Capacity Only. Landlord (including any successor Landlord), if a governmental entity or instrumentality, enters into this Lease in Landlord’s “proprietary” capacity only. Nothing in this Lease shall be deemed in any way to expand, restrict, burden, or waive any right, privilege, obligation, claim or immunity that any Governmental Authority would possess, be subject to, or be entitled to exercise if the lessor under this Lease were a private party. Without limiting the effect of the immediately preceding sentence, nothing in this Lease is intended to burden or restrict the exercise by any Governmental Authority of its “police power” or impose any liability upon any Governmental Authority for (or entitle Tenant to any credit, offset, defense, claim or counterclaim on account of) the exercise of such “police power.” In keeping therewith, Tenant’s relations with all Governmental Authorities, when acting in their capacity as Governmental Authorities, shall be governed by otherwise applicable law.

151

ARTICLE XXXIV
COMMON ELEMENTS LEASEABLE SPACE

Section 34.1 Generally.

(a)       Tenant may, subject to Section 13.2 hereof and this Article XXXIV, permit the Condominium Association, on behalf of all of the tenants under the Severance Subleases, to sublease portions of the Improvements specified in this Article XXXIV.

(b)       Tenant may permit the Condominium Association, on behalf of all of the tenants under the Severance Subleases, to enter into a sublease of up to 10,000 Square Feet of space on the floor designated as the 53rd floor of the New Building, as shown on, and in conformity with, the schematic design plan drawing listed on Exhibit I-1 attached to the Initial Ground Lease as numbered A1053 (the “Roof Top Garden Space”). Except as expressly set forth in this Article XXXIV, the provisions of this Article XXXIV shall not affect Tenant’s obligation to treat the Roof Top Garden Space as a Common Element under this Lease.

(c)       Tenant may permit the Condominium Association, on behalf of all of the tenants under the Severance Subleases, to enter into up to three (3) subleases of up to an aggregate of 600 Square Feet of space located in or adjacent to the lobby of the Improvements, such location to be specified by the Design Architect and reasonably approved by Landlord (collectively, the “Lobby Sublease Space”; and together with the Roof Top Garden Space, the “Common Elements Leaseable Space”). All Lobby Sublease Space shall be designed in accordance with the DUO. Upon finalization of plans and specifications for any portion of the Lobby Sublease Space, Tenant shall provide to Landlord (for Landlord’s approval prior to the construction of same) a statement of the Production Architect (i) certifying that such final plans and specifications conform to the Lobby Sublease Space design guidelines prepared in accordance with the DUO and (ii) attaching a complete copy of the final plans and specifications. Landlord shall notify Tenant of its approval or disapproval of such certification within fifteen (15) Business Days of its receipt thereof. Upon Landlord’s acceptance of such certification, all Lobby Sublease Space shall be constructed in conformity with the final plans and specifications certified to by the Production Architect and approved by Landlord in accordance with the immediately preceding sentence. Except as expressly set forth in this Article XXXIV, the provisions of this Article XXXIV shall not affect Tenant’s obligation to treat the Lobby Sublease Space as a Common Element under this Lease.

Section 34.2 Defined Terms.

(a)       “Budgeted Lobby Sublease Space Construction Costs” means the total, actual cost to construct the Lobby Sublease Space as reasonably approved by Tenant’s construction lender (so long as such construction lender is a Lending Institution) or as reasonably by Landlord (if, in respect of the Lobby Sublease Space, Tenant has no construction lender which is a Lending Institution), as indicated on a final construction budget approved, as the case may be, by such construction lender or by Landlord (the construction budget for the Lobby Sublease Space having been prepared separately from the overall construction budget for the Improvements, and having been provided to Landlord as a Verified Statement), including the Transaction Price and all other hard and soft costs (other than land acquisition costs above the

152

Transaction Price), in each case, reasonably allocable, on a square foot basis, to the Lobby Sublease Space.

(b)       “Budgeted Roof Top Garden Construction Costs” means the total, actual cost to construct the Roof Top Garden Space as reasonably approved by Tenant’s construction lender (so long as such construction lender is a Lending Institution) or as reasonably by Landlord (if, in respect of the Roof Top Garden Space, Tenant has no construction lender which is a Lending Institution), as indicated on a final construction budget approved, as the case may be, by such construction lender or by Landlord (the construction budget for the Roof Top Garden Space having been prepared separately from the overall construction budget for the Improvements, and having been provided to Landlord as a Verified Statement), including the Transaction Price and all other hard and soft costs (other than land acquisition costs above the Transaction Price), in each case, reasonably allocable, on a square foot basis, to the Roof Top Garden Space.

(c)       “Lobby Sublease Space Adjusted Gross Revenue” means all (A) revenues, receipts and income of whatever kind and nature of Tenant or any Related Entity, as determined in accordance with Accounting Principles, in any Lease Year, generated from the ownership, operation, leasing, use or occupancy of any Lobby Sublease Space including (1) license fees or other amounts received from any subtenant of such Lobby Sublease Space or its affiliate for the right to maintain signage on the facade of the New Building (but not from the granting of such signage rights to any third party), (2) rentals, fees or other payments from Subtenants (subject to clause (9) below), including any common area maintenance and operating expense, but specifically excluding payments received in reimbursement of utility, PILOT, Theater Surcharge or BID payments made by Tenant, or any Related Entity, (3) the proceeds of insurance received by Tenant with respect to business interruption or rent insurance (but not liability or casualty insurance received by Tenant), (4) security and other deposits which secure other revenues, receipts or income qualifying as Lobby Sublease Space Adjusted Gross Revenues when and to the extent Tenant, after the final resolution of any Subtenant dispute over whether Tenant has the right to retain such security and other deposits, either has the right to retain the same or Tenant has no obligation to refund the same (and excluding security and other deposits to the extent applied by Tenant to reimburse Tenant for reasonable costs incurred in remedying a non-monetary default by the provider of such security or deposit), (5) interest or other investment income earned from time to time by Tenant on deposits or other revenues, receipts or income qualifying as Lobby Sublease Space Adjusted Gross Revenues, (6) amounts recovered in any legal action or proceeding or settlement thereof which reimburses Tenant for a loss of revenues, receipts or income qualifying as Lobby Sublease Space Adjusted Gross Revenues (and excluding any such amounts to the extent reimbursing Tenant for reasonable costs incurred in remedying a non-monetary default by the defendant in such action), (7) construction fees from the performance by Tenant or any Related Entity of construction or construction management services for Subtenants, but only to the extent such fees exceed customary amounts (and excluding such fees to the extent they do not exceed such customary amounts), (8) leasing or brokerage commissions paid to Tenant or any Related Entity in connection with the entering into of a Sublease or the renewal thereof or the expansion of the Demised Space thereunder, but only to the extent Tenant or such Related Entity is not the procuring broker, or if Tenant or such Related Entity is the procuring broker, only to the extent such commissions exceed customary amounts (and excluding such commissions to the extent

153

they do not exceed such customary amounts), and (9) with respect to any Related Entity that is a Subtenant in possession and actual use of its Demised Space, the greater of [a] the rentals, fees or other payments made to Tenant by such Subtenant, including any common area maintenance and operating expense, but specifically excluding payments received in reimbursement of utility, PILOT, Theater Surcharge or BID payments made by Tenant and [b] the fair market rental value of such Demised Space (and with respect to a Related Entity that is a Subtenant not in possession and actual use of its Demised Space, all revenues, receipts and income of whatever kind and nature of such Related Entity generated from the Project, as provided above, shall be included in Lobby Sublease Space Adjusted Gross Revenues) less (B) refunds made upon transactions included within the revenues described in clause (A) above. “Lobby Sublease Space Adjusted Gross Revenues” shall not include any management fee in a customary amount paid by Tenant to any Related Entity to manage the Property.

(d)       “Roof Top Garden Adjusted Gross Revenues” means all (A) revenues, receipts and income of whatever kind and nature of Tenant or any Related Entity, as determined in accordance with Accounting Principles, in any Lease Year, generated from the ownership, operation, leasing, use or occupancy of any Roof Top Garden Space including (1) license fees or other amounts received from any subtenant of such Roof Top Garden Space or its affiliate for the right to maintain signage on the facade of the New Building (but not from the granting of such signage rights to any third party), (2) rentals, fees or other payments from Subtenants (subject to clause (9) below), including any common area maintenance and operating expense, but specifically excluding payments received in reimbursement of utility, PILOT, Theater Surcharge or BID payments made by Tenant, or any Related Entity, (3) the proceeds of insurance received by Tenant with respect to business interruption or rent insurance (but not liability or casualty insurance received by Tenant), (4) security and other deposits which secure other revenues, receipts or income qualifying as Roof Top Garden Adjusted Gross Revenues when and to the extent Tenant, after the final resolution of any Subtenant dispute over whether Tenant has the right to retain such security and other deposits, either has the right to retain the same or Tenant has no obligation to refund the same (and excluding security and other deposits to the extent applied by Tenant to reimburse Tenant for reasonable costs incurred in remedying a non-monetary default by the provider of such security or deposit), (5) interest or other investment income earned from time to time by Tenant on deposits or other revenues, receipts or income qualifying as Roof Top Garden Adjusted Gross Revenues, (6) amounts recovered in any legal action or proceeding or settlement thereof which reimburses Tenant for a loss of revenues, receipts or income qualifying as Roof Top Garden Adjusted Gross Revenues (and excluding any such amounts to the extent reimbursing Tenant for reasonable costs incurred in remedying a non-monetary default by the defendant in such action), (7) construction fees from the performance by Tenant or any Related Entity of construction or construction management services for Subtenants, but only to the extent such fees exceed customary amounts (and excluding such fees to the extent they do not exceed such customary amounts), (8) leasing or brokerage commissions paid to Tenant or any Related Entity in connection with the entering into of a Sublease or the renewal thereof or the expansion of the Demised Space thereunder, but only to the extent Tenant or such Related Entity is not the procuring broker, or if Tenant or such Related Entity is the procuring broker, only to the extent such commissions exceed customary amounts (and excluding such commissions to the extent they do not exceed such customary amounts), and (9) with respect to any Related Entity that is a Subtenant in possession and actual use of its Demised Space, the greater of [a] the rentals, fees or other payments made to Tenant by such Subtenant,

154

including any common area maintenance and operating expense, but specifically excluding payments received in reimbursement of utility, PILOT, Theater Surcharge or BID payments made by Tenant and [b] the fair market rental value of such Demised Space (and with respect to a Related Entity that is a Subtenant not in possession and actual use of its Demised Space, all revenues, receipts and income of whatever kind and nature of such Related Entity generated from the Project, as provided above, shall be included in Roof Top Garden Adjusted Gross Revenues) less (B) refunds made upon transactions included within the revenues described in clause (A) above. “Roof Top Garden Adjusted Gross Revenues” shall not include any management fee in a customary amount paid by Tenant to any Related Entity to manage the Property.

155

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