baitif eb-5 loan

8/7/2019 BAITIF Eb-5 Loan

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EXECUTIO\ \-ERSIO\

NEW YORK STATE URBAN DEVELOPMENT CORPOR{TIO\ D B .\EMPIRE STATE DEVELOPMENT CORPOR.{TI O\633ThhdAvenueNew York.NY 10017De;e: : . rc:

AYDC RegionalDevelopment ompany, LCc/o ForestCity RatnerCompanies, LC1 MetrotechCenterNew York,NY 11201Re:

Ladies ndGentlemen:Referenceismadeto(a)thatcertainlet terdatedasofOctober5,20T0,amonQ\:rr' - - :k

StateUrbanDevelopment orporation /b/aEmpireStateDevelopment orporation"ESDC' .

AYDC RegionalDevelopmeni o.npuny,LLC "AYRDC") andBrooklynArena niiastruc:u:eand TransportationmpiovementFund, LLC ("BAITIF") (the "Undertaking"), nd r'br halcerrainDei,elopment lreement, ated sof March4, 2A10, y andbetween SDCandcertain.\fTiliatesof AYRDC lthe "DevelopmentAgreement"). All capitalized erms used but not..leinedhereinshallhave he meaning iven o such erms n theDevelopment greeme t'As set orth in theUndertaking, YRDC andBAITIF havenotifiedESDC hat ^A'\T'DCandBAITIF haveenterednto a loanagreement atedOctober5, 2010(the"LoanAgreement").$herebl..BAITIFwill makea loan o AYRDC in the principalamountof up_to$249,000,000

lthe "lnitial Loan"). AYRDC hasfurtheradvisedESDCthat BAITIF andAYRDC may enteri"ro u ,uUrrqrent loan agreementwherebyBAITIF or an affiliate thereofwould provide ana,lditionaloan n themaxlmum rincipal mount f $40,000,000the Additional oan")'

In accordance ith the ermsandsubjecto theconditions f theUndertaking, SDC hasasreed o execute nddelivera recognition greemento BAITIF in theform attached sExhibitA to the Undertaking (each .uih agreement,a uRe-cognitionAgree-ment")' AYRDCacknowledgeshat hed-eliveryf theUnJertaking y ESDC s a material nducemento BAITIFto enter nto the Loan AgreementandAYRDC's agreemento executeand deliver his letterwasa material inducement o ESDC'sexecutionand delivery of the Undertaking. ESDC andAYRDC herebyagreehat his etter s delivered sof thedate lrst writtenabove, ut is deemedeffective sof October , 2010 "EffectiveDate")'

In considerationf ESDC'sdeliveryof the Undertaking,he covenants nd agreementsset orth hereinandothergoodandvaluabie onsideration,he receiptandsufficiencyof whicharehereby cknowledged,SDCandAYRDC hereby gree s ollows:AYRDC hereby dvises SDC hat:(a) prior to thedateof the irst advance f theBAITIF to AYRDC pursuanto the LoanAgreement the"Initial AdvanceDate")..Init ialLoanbyAYRDC shall

A ^^^ ' ,- t rr th o.nLLUUllL . l rreestablish n ur.ount to receivesuchadvancessuchaccount,he "Depositoryfundsdepositedherein he "AdvancedFunds");

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2. Prior to the Initial Advance Date, AYRDC shall establish and maintain asegregatedankaccount the"Prospective ostsAccount")as ollows:

(a) The ProspectiveCostsA,ccount hall be maintained t an institution hatqualifiesas a "Depositary," s such erm is defined n the Arena Block(Non-Arena Parcel) Interim Lease. Upon the establishment f theProspective ostsAccount,AYRDC shall notify ESDCof the identityofthe Lending nsti tutionat which the account s maintained nd the nameandaccountnumber.AYRDC shall und he ProspectiveostsAccount n accordance ith therequirementsf Parasraph below.Exceptasprovided n Paragraph (d) below,AYRDC shallonly withdrawfunds from the ProspectiveCosts Account for applicationtowardsProspective osts(as hereinafter efined) n accordance ith Paragraph3@ Simultaneouslywith each withdrawal, AYRDC shall deliver toESDC an Officer's Certificatecertiffing that the funds withdrawn areeither (i) being applied towards ProspectiveCosts and stating withreasonablearticularity he natureof suchProspective osts, he recipientof such funds and the amount thereof; or (iD interest or incomedistributions sset forth in Paragraph (d) below (eachsuchcertificate,a"WithdrawalCertificate").Any amountsheld in the Prospective ostsAccount may be invested nPermitted nvestmentsas hereinafter efined). Any interestor incomeearned on such Permitted Investmentsshall accrue to and may bewithdrawnby AYRDC from the Prospective ostsAccountandbe freelydistributable t any ime; provided. owever hat if thereareany osses nsuch Permitted nvestments,AYRDC shall withdraw funds from theProspective ostsAccountonly for applicationowardsProspective ostsuntil such lossesare recoupedby earningson Permitted nvestments.AYRDC shall be solely responsibleor the paymentof any federal,stateor local ncomeor other ax applicableo the nterest r incomeearned nthe Permitted nvestments nd any other costsor expensesn connectionwith the ProspectiveCosts Account. As used herein, "PermittedInvestments" hall nclude: i) obligations f or obligations uaranteedsto principal and interest by, the U.S. governmentor any agency orinstrumentalityhereof,whensuchobligations re backedby the full faithand credit of the United States f America; (ii) federal unds,unsecuredcertificates f deposit, ime deposits, anker's cceptances,nd repurchaseagreementsavingmaturities f not more han365 daysof any bank, he

(b)

(c)

(d)

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short-term ebt oblisationsof *frrcf, are ratedA-1 bv Standard Poor'sRatings Services "3&8"); (iii) deposits hat ur. fully insuredby theFederalDeposit nsurance orporation; iv) debtobligations hat are ratedAA by S&P havingmaturities f not more han 365 days; v) commercialpaperrated A-1 by S&P; (vi) investment n moneymarket funds ratedAAAm or AAAm-G by S&P; and vii) anyother nvestmentspproved yESDC n its reasonable isqetion.3. No later thanthe last day of January,April, July and Octoberof eachcalendaryear following the Initial AdvanceDate,AYRDC shalldeliver o ESDC an Officer'sCertificatecertiffing AYRDC's compliancewith Paragraphs and 6 of this letter eachsuchcertificate, n"Expenditures ertificate"). EachExpenditures ertificate hallalso certify the following withrespect o (i) the immediately receding uarterlyperiod (e.g., or the Expenditures ertificatedue n January,he periodbetweenOctober andDecember 1 of the previous ear)and(ii) theperiod rom the Initial AdvanceDate until the final dayof the immediately receding uarterlyperiod:

(a)(b)

(c)

(d)

The total amount of AdvancedFundsthat have been depositedn theDepository ccount;The total amount of Advanced Funds that have been withdrawn byAYRDC from the DepositoryAccount such unds, he "LoanProqeeds");The totalamountof LoanProceedshat havebeendeposited y AYRDCin theProspective ostsAccount;The otal amountof the Loan Proceedshat havebeenwithdrawn rom theProspectiveCosts Account and applied towards any third-party costsincurred n connectionwith the development f the Project solely afterMay 12,2010 (the total amountso applied, he "BfeSpegIwe-eo-SE"),olong as suchProspectiveCostshave not also been eimbursed ut of orpaid for by (i) funds paid to Atlantic Yards DevelopmentCompany,AYDC Interim Developer,Brooklyn Events Center,ForestCity RatnerCompanies, orestCity Enterprises,nc., or its Affiliates or subsidiaries(collectively, "FC Entities") under (i) the State Funding Agreement(including undspayable o ESDC for transfer o an FC Entity under heCity Funding Agreement)or (ii) funds transferred o the Series2009PILOT Bonds Construction nd Acquisition Subaccountn the SeniorPILOT BondsConstruction nd AcquisitionAccountof the PILOT BondsProjectFund(assuch ermsaredefined n that certainFirst SupplementalPILOT Indentureof Trust, datedas of December , 2009,by BrooklynArenaLocal DevelopmentCorporationo The Bank of New York Mellon)on May 12, 2010 that are subsequentlyequisitionedby an FC Entity.Without limiting the foregoing,Prospective ostsshallnot includecostsincurred n connectionwith (i) the CompletionAmount (assuch erm isdefined n the Arena Development ease); ii) the amounts eposited nMay 12,2010, by Affiliates of AYRDC into the Infrastructure und (as

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such term is defined in that certain Amended and Restated TrustAgreement,dated as of May 12, 201A, by and betweenAtlantic YardsDevelopment ompany,LLC,The City ofNew York (the"City") and TheBank of New York Mellon); (iii) the Existing Loan Costs; (iv) anyamountspayable(whether debt service,principal or otherwise) withrespecto any financingentered nto by FC Entities,Onexim SportsandEntertainment olding USA, Inc., or any of its Affiliates or subsidiarieson or prior to May 12, 201A; or (v) any developer ee, constructionmanagementee or other similar ee or paymento an FC Entity. For theavoidanceof doubt, ProspectiveCosts shall include costs incurred inconnectionwith (i) paymentsof any CompletionShortfallAmounts (assuch erm s defined n theArenaDevelopment ease) fterMay 12,2010;and (ii) any amountsdeposited n the InfrastructureFund after May 12,2010 as may be required o allow the FundTrustee o disburse mounts nthe BridgeAccountand/or nfrastructure ccount(aseachsuch erms aredefined in the Amended and RestatedTrust Agreement),prqyidgdlha!such funds are deposited olely o alleviateany shortfall n the requiredbalance fsuchaccounts;ndThe total amountof funds hat havebeenexpended y AYRDC and/or tsAffiliates to satisfyor otherwise elease he liens of certain'mortgagesgranted by Affiliates of AYRDC in favor of Gramercy WarehouseFunding I, LLC (as agent or itself and its assigns nd participants,togetherwith its successors nd assignsn such capacity, he "ExistingLender")with respect o the premises emised y the ArenaBlock (Non-Arena Parcel) nterim Leaseand the Block 1129 nterimLease suchpremises, ollectively,he "LeasedPremises"; uch mortgages, s thesameare amended, estated, upplemented r otherwisemodified fromtime to time (exceptas the samemay be so assigned o BAITIF), the"Existing Mortgages";and the total amountso expended,he "E1istin!LoanCosts") it beingagreedhat he ExistingLoan Costsshall ncludealltransactional osts(e.g., itle insurance remiums, ecording ees, egalfees and other third-party expenses)ncurred in connectionwith thesatisfaction,. release and/or assignment o BAITiF of the ExistingMortgages).

4. In accordance ith and subject o the termsand conditions f this letter,AYRDCshallapply he Loan Proceedsowards he costs ncurred y AYRDC and ts Affiliatesafter May72, 201A, n the development f certain mprovements omprisingportionsof the Project (the"Approved mprovements"; nd he costsso incurred,ncluding he reimbursementf AYRDCand ts Affiliates for suchcosts, he "ApprovedCosis"),which Approved mprovements onsistof the ollowing:

theArena;theSubway ntrance;

(e)

(a)(b)

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(c )(d)(e)(0(e)(h)(D(')

a publicspace ndoutdoorpublic plazaadjacento the Arena;the UpgradedYard;the demolition f existingstructures n theProjectSite;the excavation,emoval, erouting ndupgrading f municipalwater andsewer ines n supportof the construction f theProject;the construction f the Carlton AvenueBridge, togetherwith all workrequired o completehe same;the construction f the Arenaparking;thepreparationf development itesaspartof theProject;andthe satisfaction,cquisitioqassignment r release,n full or in part, ofIiensandencumbrancesffecting he Project including,without imitation,theExistingMortgages).

6.IN

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7. In the event hat AYRDC or its Affiliates enter nto the Additional Loan, thenAYRDC shall apply the frst $40,000,000n loan proceedswithdrawn from the depositoryaccount or otherwise vailable o AYRDC) as follows: on a pari passubasis,AYRDC shalldeposit fifty percent(50%) of such loan proceeds n the ProspectiveCosts Account (forapplication n accordance ith Paragraph above)and shall apply fifty percent 50%)of suchloanproceedsor anyother costs hatarepermissible ndersuchsubsequentoan agreement,nAYRDC's or its Affiliate 's sole discretion. ESDC agrees hat it shall execute,deliver andacknowledgea RecognitionAgreement n form and substance ubstantiallysimilar to theagreementattachedas Exhibit A to the Undertaking or otherwisemodify a RecognitionAgreement) o as o recognizehe enderunder he AdditionalLoanand any mortgages xecutedin connectionherewith

8. AYRDC shall keep,or cause o be kept, rue and completebooksof recordandaccounts n respect f mattersgoverned y or relating o this letter n accordance ith soundaccounting rinciples onsistently ppliedand otherwisen accordance ith the requirements fthe ProjectDocumentation,f any. Such ecords hallbe maintained s aforesaid or aper iod ofnot less han three(3) yearsafter the TerminationDate (as defined n Paragraph 2 below);pqeyidgd, owever, hat if, at the expirationof such hree(3) year period,ESDC is seeking ocontestor is contesting ny matter elating o such ecordsor any matter o which such ecordsmay berelevant, enant hallpreserve uch ecords ntil one(l) yearafter he inal adjudication,settlement r otherdisposition f any suchcontest.ESDC and ts respectiveepresentativeshallhave he right from time to time to conductan auditof AYRDC's booksof.recordandaccountsrelating o mattersgoverned y or relating o this letter,and AYRDC shall cooperate ith theperformance f such eview. All suchauditsshalloccurduringregularbusiness oursand uponnot less han five (5) BusinesbDaysprior notice. Upon the requestof ESDC or its respectiverepresentatives,Y\DC shallproduce, ubjecto Paragraph below,all books, ecords, apers,booksof record, iles and accounts elating o mattersgoverned y or relating o this letter orinspectionat AYRDC's placeof business. The costof such review shall be borne solely byESDC, except that,if the results of such review determine hat AYRDC, whether or notinadvertently,has ssueda Withdrawal Certificateor an ExpendituresCertificate hat containsadiscrepancy hat is more than ten percent(10%), then AYRDC shall pay or reimburse he



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reviewingpafty,as applicable, n demandor thereasonableostsandexpensesnvolved n suchreview.g. AYRDC herebyadvisesESDCthat certain nformation urnished y AYRDC toESDC in accordancewith the terms of this letter (including, without limitation, eachExpendituresCertificateand any materials escribedn Paragraph above)may contain radesecrets,he disclosure f which could cause arm o AYRDC's competitive osition. Subject oall Requirements,ncluding he Freedom f InformationLaw (Article 6 of theNew york StatePublicOfficersLaw) ("FOIL"), ESDCwill use easonablefforts o maintain he confidentiali tyof all materialsprovided o ESDC pursuant o the terms of this letter and which are not. toESDC'sknowledge,otherwise n the public domainor obtained rom third party sourceson aconfidentialbasis;provided,however hat the foregoingshall not restrictESDC from makingany disclosure f such nformationas ESDC deemsnecessary r desirableo provide o otheiagencies r instrumentalitiesf theState f New York, and/oro the respective oardof directorsof each, he staffmembers f such directors, nd/or o ESDC'semployees,egal, inancialandotherprofessional dvisorsand/or o complywith any applicableRequirements, rovided hatESDCshall n eachcase nform he party o which suchdisclosures made hatsuch nformation

is confidential, nform such party of the confidentialityprovisions of this letter and usereasonable fforts to obtain a written undertakingrom suchparty to keep such nformationconfidential. In the eventthat ESDC is requiredby subpoena, ourt order or other similarprocess o disclosesuch informationor if ESDC receivesany written FOIL requestseekingdisclosure f the materials escribedn this Paragraph , ESDC shall,prior to complyingwitlsuchsubpoena,ourt orderor similar process r FOIL request, rovideAYRDC with writtennoticeso thatAYRDC shallhavean opportunityo seek,at AYRDC's solecostandexpense,protectiveorderor otherappropriateemedy. If AYRDC doesnot obtaina protective rder orother remedy o preclude he disclosure f the requestedmaterials,AYRDC acknowledgeshatESDCmaydisclose uch equestedmaterials, ut shallcomplywith suchsubpoena,ourtorder,similar process r FOIL requestby providing he minimumof suchrequestidmaterialsbeingsoughtasadvised y ESDC's egalcounsel nd he governmental r udicial authority equiringsuchcompliance.ESDC shallhaveno liabilityof any nature or a breachor failure o complywith this Paragraoh.10 ' AYRDC shallnot be deemedo be in defaultof its obligations nder his lerterunlessESDChasdeliveredwritten noticeof suchdefault o AYRDC and AyRDC has ailed tocure he samewithin thirty (30) daysof the dateof deliveryof suchnotice, o the extentsuchdefault s not otherwisea Defaultunder he ProjectDocumentation.The foregoingnotice andcure period shall not replaceor extend he applicablecure periodsprovidedunderthe otherProject Documentation. In the event that A\aRDC fails to cure such default within anyapplicable ureperiod, henat anytime thereafter o long as suchdefault s continuing,ESDCmay,uponwrittennotice o AYRDC, do the ollowing:

(a) Declare an "Event of Default" as defined in section r7.l (Events ofDefault)of theDevelopment greement,n which eventESDCwould beentitled to the remedies or such Event of Default in accordancewithSection17.2(Remedies nd Damages) f the Deveropment greement(including,without imitation,Section17.2(r)hereof); r

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(b) in addition to, and without limitation of the remediesset forth inParagraph 0(a)aboveor Section17.2of the Development greement,demandhatAYRDC pay as iquidateddamages n the dateof receiptofwritten demand hereforby ESDC and on the sameday of eachcalendarmonth hereafterhat suchdefault s continuing,an amountwhich shallbecalculatedat a rateof twenty percent(20%) per annumon any LoanProceedshathavebeenmisapplied y AYRDC in violationof Paragraphs2or fof this etter.AYRDC AGREEST}IAT (D TTD AMOLINT OF ACTUAL DAMAGESTO BE SUSTAiNEDBY ESDC UPON THE OCCURRENCEOF ANYDEFAULT DESCRIBED IN THIS PARAGRAPH l0(b) WOULD BEMATERIAL, BUT INCAPABLE OF PRECISECALCULATION ANDNOT READILY ASCERTAINABLE, (Ii) THE AMOUNTS SET FORTHIN THIS PARAGRAPH lO(b) ARE REASONABLE IN PROPORTIONTO THE PROBABLE DAMAGES LIKELY TO BE SUSTAINED BYESDC,(ili) AYRDC HAS HAD THE ADVICE OF COUNSELOF ITSOWN SELECTION WHO REVIEWED THE PROVISION FOR THEPAYMENT OF THE AMOI.INTS SET FORTH IN THIS PARAGRAPHioft) IN CONNECTIONWITH THE EXECUTION AND DELIVERYOF THIS LETTER, (IV) THE TERMS OF THIS LETTER WERENEGOTIATED AT ARMS LENGTH, AND (V) THE AMOLINTS SETFORTHIN THIS PARAGRAPHIO(b)ARE NOT INTENDEDTO, ANDDO NOT, CONSTITUTE A PENALTY OR PI-'NITIVE DAMAGESFOR ANY PURPOSES. THE OBLIGATION TO PAY THELIQUIDATED DAMAGES PROVIDED IN THIS PARAGRAPH IO(b)SHALL SURVIVE TFIE EXPIRATION OR EARLIER TERMINATIONOF THIS LETTER.

(c) Seekany andall remedies vailableo ESDCat law or in equityor underor in connectionwith this letteror any ProjectDocumentation,ncludingwithout limitation, specific performance, njunctive relief, and therecovery y ESDC rom AYRDC of anyandall damages,ums, osts,andexpensesncurredby ESDC as a result of or in connectionwith suchdefault.I L All notices ndcommunicationso theparties ereunder ill be delivered y handor sentby registered r certifiedmail, returnreceipt equested, r by FederalExpressor otherovernightmail servicehatprovides receipt o the sender, ddressedsset orthbelow. Receiptof a noticeby theparty o whom he notice s transmittedwill be deemed o haveoccurredupon

receipt, f handdelivered;ive days romthedateof mailing, f mailed;orthe next BusinessDayafter ransmittal y FederalExpress r otherovernightdeliveryservice hatprovidesa receipt othe sender. Notices shall be effectiveupon receipt(as set forth in the precedingsentence),notwithstandinghe refusal o accept eceiptor the inability o deliveron account f a changeofaddress ith respecto whichno noticewasgiven.if to ESDC:



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New York StateUrbanDevelopment orporationd/b/aEmpire StateDevelopment orporation633ThirdAvenueNew York,New York 10017Attention: GeneralCounselwith a copy o:Skadden, rps, Slate,Meagher& FlomLLPFour TimesSquareNew York, New York 10036Attention: Neil L. Rock,Esq.andNew York City EconomicDevelopmentCorporation110Will iamStreetNew York,New York 10038' Attention: ExecutiveVice President f RealEstateTransactional ervicesandNew York CityEconomic evelopment orporation110William StreetNew York, New York 10038' Attention: GeneralCounselandNew York City Law Department100ChurchStreetNew York, New York 10007. .- -. , Attpntion: Qhief.Econo"Alq-qgv-lopmentivision

if to AYRDC:c/o ForestCity RatnerCompanies,LLCI MetroTechCenterBrooklyn, ew York 11201Attention: GeneralCounselwith copieso:ForestCity Enterprises,nc.50 PublicSquare, uite1360, erminalTowerCleveland, hio 44113Attention:GeneralCounsel

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andFried,Frank,Harris,Shriver& Jacobson LPOneNew York PlazaNew York, New York 10004Attention:Stephenefkowitz,Esq'

Notwithstandinganything to the contrary herein, copies of Withdrawal CertificatesandExpenditureCertincates eedonly be deliveredo ESDCandNYCEDC and not theirrespectivein-house r outside ounsel.lZ. Exceptas set orth in Paragraph andParagraph 0, he obligations f AYRDCwith respect o the Initial Loan contained n this letter shall terminateand expire 60 daysfollowing the dateof deliveryof an ExpenditureCertificate ollowing the satisfaction f all ofthe following (a) the withdrawalby AYRDC of all'funds in the DepositoryAccount;(b) thewithdrawalUyeVnOC of all funds n theProspective ostsAccount;and(c) theapplication fall fundswithdrawn rom the Prospective ostsAccount n accordance ith Paragraph (such

date, he "TerminationDate"). In the eventAYRDC or its Affiliates enter nto the AdditionalLoan, hen he obligations f AYRDC with respecto theAdditionalLoan containedn this lettershall erminateand expire60 days following AYRDC's depositof fifty percent 50%) of suchloanproceedsn theProspective ostsAccount n aceordance ith Paragraph .13. In the event that AYRDC believes n good faith that any of its obligationshereunder onflictwith any Requirementsincluding he requirements f the EB-5 ImmigrantInvestor Program), hen AYRDC shall promptly notify ESDC in reasonable etail of suchconflict andaproposedesolution f thesame.ESDCshallpromptly eview such esolution ndnotifu AYRDC whether t accepts r rejectshe same,n its reasonableiscretion.14. Notwithstandinganything o the contrary n this letter,no Affiliate, shareholder,

director, partner,member,officer, employee,agent or servantof AYRDC shall be liable(personally r otherwise)o ESDC or anyotherPerson nderor by reason f this letteror anyofthe matterscontemplated y this letter. In no eventshallany of the GovernmentalEntities haveany monetary iability or obligationwhatsoever nder this letter,other than the obligationsexpressly et orth n Paragraphs. 8. 9. and 0.i5. TheCity of New York andNYCEDC shallbe third party beneficiariesereunder,andshallhave he egalandequitableight,powerandauthorityo seek o: (a) enforcehis etter;(b) seekany remedyarisingout of AYRDC's performance r failure to performany term orconditionof this letterand c) bringanaction orthe breach f this etter.16. In the event hat any interest ayableunder his lettershall be deemedo exceedthe maximumratepermittedby law, then he amountof interest o be paid shall bethe maximumratesopermitted.17. This lettershall nure o the benefitof andbe bindingupon he parties eretoandtheir respective uccessorsnd assigns, xceptAYRDC shallnot assign ts rights or obligationsunder his etterwithout he priorwrittenconsent f ESDC.

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18. Nothing in this letter shall, or shall be deemed o, modify, replace"amendorotherwise lterany erm, conditionor obligationset orth n theProjectDocumentation.lg. Theprovisionsof this lettermaybe waived,modifiedor amended,n whole or inpart,only by an instrument n writing, executed y the partieshereto. A party'sgiving of itsconsent r approvalo anyact or request f anotherpartyshallnot bedeemedo waiveor renderunnecessaryhe consenting/approvingarty'sconsent o or approvalof any subsequentimilaractsor requests.20. This letter, he Undertaking nd the otherProjectDocumentation ontainall ofthe promises,agreements, onditions, nducements nd understandings etweenESDC andAYRDC the matters contemplatedby this letter, and there are no promises, agreements,conditions, nderstandings,nducements,anantiesor representations,ralor written,expressedor implied, between hem concerning he matterscontemplated y this letter other than asexpressly et forth herein. Notwithstandinghe foregoing,nothingcontainedn this letter isintended o terminate,modify or otherwise imit the applicabilityof the MGPP andany otherProjectDocumentationelating o theProject.21. This letter may be executedn any numberof counterpartswhether acsimile,original,portabledocument ormator otherwise), achof which when executed nd deliveredshall be deemed o be an original,and suchcounterpartsogethershallconstitute ne and thesameetter.22. This letter shallbe governed y, construed nd enforced n accordance ith thelaws of the StateofNew York, withoutreferenceo anyconflictsof lawsprovisions hereofandwithout he aidof anyrule, canon r custom equiringconstruction gainsthe draftsman.

[No further exton thispage.]

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If you are in agreement ith the foregoing,pleasecountersignhis letter in the spaceprovidedbelowand etuma fully executed opy o our attention.

Very rulyyours,NEWYORKSTATEURBANDEVELOPMENTCORPORATIONDIBIA EMPIRESTATE

ACCEPTEDAND AGREEDTHIS 16.h AY OFDECEMBER,20IOAYDC REGIONAL DEVELOPMENTCOMPANY,LLC

Name:Title:

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By:

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If you are in agreementwith the foregoing,pleasecountersign his letter in the spaceprovidedbelowand eturna fully executed opy o our attention.

Very truly yours,NEW YORK STATE URBAN DEVELOPMENTCORPORATIONDIB/A EMPIRE STATEDEVELOPMENTCORPORATION

By: Name:Title:

ACCEPTED ND AGREEDTHIS 16ftDAY OFDECEMBER,O1OAYDC REGIONAL DEVELOPMENTCOMPANY.LLC

By:L?3t' David . BertinerIlt le: Sr . Vice Presicient

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