Lease Agreement between City and 7 WTC Company, Mar 1998

NYC 9/11 Public Portal Document

1.2 “Base Price Index” shall mean the Price Index for the month of January, 1998.

1.3 “Lease Year” shall mean each period of twelve (12) consecutive months, beginning on the first day of January of each calendar year, during the Term of this Lease.

1.4 “Operating Expenses Base Year" shall mean the calendar year 1998.

2. “Operating Expense Escalation "shall mean a sum payable by Tenant to Landlord each Lease Year computed by multiplying the sum representing the Base Year Operating Expenses as defined under Subsection A. 1 of this Article 4 by the percentage, if any, by which the average Price Index, as published for the month following the last month of the Lease Year in question, shall exceed die Base Price Index. Such sum shall be multiplied by 2.59% which represents Tenant pro rata share of Operating Expenses for the Building. (S^ example for calculating CPI Index changes below.)

3. Such Operating Expense Escalation for every Lease Year which follows the Operating Expense Base Year shall be billed and paid as follows:

(a) Within ten (10) weeks after the beginning of any such Lease Year, Landlord shall deliver to Tenant a statement (hereinafter the “Estimate”) showing the estimated amount of such Operating Expense Escalation payable for the then current Lease Year, which estimated amount shall be calculated by using the previous Lease Year’s CPI factor according to 2. above. Tenant shall pay Landlord the same sum, in equal monthly installments ( such monthly installment hereinafter referred to as the “Amount”) in arrears on the last day of each and every month during such Lease Year. Such Estimate shall be on account of the Operating Expense Escalation accruing under this Subsection A.2, subparagraph 3 (b), below for the then current Lease Year.

(b) Within ten (10) weeks after the end of the Lease Year, in which such Amounts were payable under Subparagraph 3 (a) above. Landlord shall deliver to Tenant a statement of the Operating Expense Escalation payable by Tenant for such Lease Year, computed in accordance with 2. above. Such statement shall indicate the balance payable by Tenant after crediting Tenant with the aggregate of the monthly Amount payments made under Subparagraph 3. (a) above for such Lease Year. The amount of such balance shall be paid by Tenant to Landlord within 45 days after delivery of such statement. If there is an overpayment by Tenant Landlord shall refund the overpayment to Tenant within 45 days after delivery of the aforesaid statement.

4. Landlord shall not be obliged to make any adjustments or recomputations, retroactive or otherwise, by reason of any revision which may later be made in the figure of the Price Index first published for any month. The Price Index published for any Lease Year shall, for the purpose of this Subsection A.2., be deemed no lower than the Base Price Index.

F;\CR\LHC\ 4219.1016\NEWLSE.FNL 9

NYC-WTC_000169621