Draft lease for 7 World Trade Center, March 1998

NYC 9/11 Public Portal Document

increase in the Architect’s fees and/or services as provided in Paragraph (B)(a) hereof. The Work (Cost in excess of Landlord’s (Contribution will be paid by Tenant. The parties acknowledge that the Architect’s Development Design Package dated December 26, 1997 expresses a Work-Cost of $ i —Tenant shall not authorize a change order or changes or new materials to create! a Work Cost in excess of $141287.986.00. The balance of the Work Cost in excess of Landlord’s Contribution, the sum of al2.619.12^.00 shall be borne by Tenant. If the Work (Cost (including Landlord’s (Contribmion) exceeds $■

$14,287.986.00. Tenant shall promptly meet with Landlord to resolve the overage, but the preceding shall not affect Tenant’s responsibility for payment of the Work Cost in excess of Landlord’s Contribution. Payment Provided Landlord has c Wiibit meed and is proceding with reasonable diligeni in the performance of Tenant’s Initial Work, payment by Tenant of the Work Cost in excess of Landlord’s Contribution shall be made as follows: (i) within 60 days following approval of the bids of all trades necessary for Substantial Completion of the Demised Premises, but not earner than 60 days after receipt by Tenant of an invoice therefor. Tenant shall pay to Landlorcf^the sum of $ $3.500.000.00. (ii) within 120 days following approval of the bids of all trades necessary for Substantial (Completion of the Demised Premises, but not earler than 60 days after receipt by Tenant ofan invoice - therefor. Tenant shall pay to Landlord the an additional sum^ffcT::^' $3.500.000.00, and (iii) upon 30 days after Substantial Completion, Tenant shall pay to Landlord the finance balance of the Work Cost in excess of Landlord’s Contribution. Said payment by Tenant upon Substantial (Completion may exclude the undisputed value of uncompleted punch list items and uncompleted Scheduled Items, which amount shall be paid promptly by Tenant after completion by Landlord. Any late payment by Tenant after^aid stated dates shall be made together with interest at 10% per annum, compounded dailyfrom date due to date of payment, but in no event more than the highest rate of interest which/at the time shall be permitted under the laws of the State of New York. /

(J) Any dispute regarding the determination of Substantial Completion of Tenant’s Initial Work and/or-die-Commenccmcnt^ate shall be resolved by arbitration, in the manner by the rules and before the American Arbitration Association (or any successor organization) in New York County. The party desiring arbitration shall appoint as arbitrator on its behalf, a person having at least 10 years relevant experience and give notice written notice to the other party who shall, within 15 days thereafter, appoint a second person having at least 10 years relevant experience and give written notice thereof to the first party. The arbitrators so appointed, shall within 15 days following the appointment of the second arbitrator appoint a third disinterested person having no less than 10 years relevant experience.

Said arbitrators shall, as promptly as possible (but in any event within 30 days following the appointment of the third arbitrator) determine the dispute by a majority of the arbitrators, whose decision shall be binding and conclusive upon the parties hereto. Each party shall bear its own fees and expenses of (i) its own attorneys and other experts and the arbitrator that it selected and (ii) be responsible for one-half the fees and expenses of the third arbitrator.

The arbitrators shall have no power to vary or modify any of the provisions of

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NYC-WTC_000169859