E X E CUT I O \ \ -E RS I O \

NEW YORK STATE URBAN DEVELOPMENT CORPOR{TIO\ D B .\

EMPIRE STATE DEVELOPMENT CORPOR.{TI O\
633 Thhd Avenue
New York.NY 10017

De; e::.rc:

AYDC RegionalDevelopmentCompany,LLC
c/o ForestCity RatnerCompanies,LLC
1 MetrotechCenter
New York,NY 11201

Re:

LadiesandGentlemen:
\'--:k
R eferenceismadeto(a)tha t c e rt a in le t t e rd a t e d a s o f O c t o b e r5 , 2 0 T 0 ,"ESDC'
a mon Q \ : r r
Corporationd/b/aEmpireStateDevelopment Corporationf r.
StateUrbanDevelopment
Iniiastruc:u:e
AYDC RegionalDevelopmeniCo.npuny,LLC("AYRDC") and Brooklyn Arena
ImpiovementFund, LLC ("BAITIF") (the "Undertaking"), and r'br ihal
and Transportation
cerrainDei,elopment Alreement,datedas of March 4, 2A10,by andbetweenESDC and certain
used but not
.\fTiliates of AYRDC lthe "DevelopmentAgreement"). All capitalizedterms
..lefined hereinshallhavethe meaninggivento suchtermsin the Development Agreeme nt'

As set forth in the Undertaking,AYRDC and BAITIF havenotified ESDC that ^A'\T'DC
Agreement").
and BAITIF haveenteredinto a loan agreementdatedOctober5, 2010 (the "Loan
$herebl..BAITIFwill makea loan to AYRDC in the principal amount of up_to $249,000,000
BAITIF and AYRDC may enter
lthe "lnitial Loan"). AYRDC has further advisedESDC that
provide an
i"ro u ,uUrrqrent loan agreementwherebyBAITIF or an affiliate thereof would
(the Loan")'
"Additional
a,lditionalloanin the maxlmumprincipalamountof $40,000,000

In accordance with the termsand subjectto the conditionsof the Undertaking,ESDC has
BAITIF in the form attachedas Exhibit
asreedto executeand delivera recognitionagreementtouRe-cognition
A to the Undertaking (each .uih agreement,a Agree-ment")' AYRDC
acknowledges that the d-eliveryof the UnJertakingby ESDC is a materialinducementto BAITIF
this letter was
to enter into the Loan Agreementand AYRDC's agreementto executeand deliver
of the Undertaking. ESDC and
a material inducementto ESDC's executionand delivery
but is deemed
AYRDC herebyagreethat this letteris deliveredas of the dateflrst written above,
effectiveasof October5, 2010("EffectiveDate")'

In considerationof ESDC'sdelivery of the Undertaking,the covenantsand agreements

the receiptand sufficiencyof which
set forth hereinand othergood and valuabieconsideration,
areherebyacknowledged, ESDCandAYRDC herebyagreeasfollows:

1. AYRDC herebyadvisesESDC that: (a) prior to the dateof the first advanceof the
Date").
InitialLoanby BAITIF to AYRDC pursuantto the Loan Agreement(the "Initial Advance
AYRDC shall establishun ur.ount to receivesuch advances(such account,the "Depository
A
^^^',-trr
.nLLUUllL .
tho
lrre funds depositedtherein the "AdvancedFunds");

7 6 8 5 7 0 .0 8 -N eu Yor ii Sener i.{ - \1S\\

 2. Prior to the Initial Advance Date, AYRDC shall establish and maintain a
bankaccount(the "ProspectiveCostsAccount")as follows:
segregated

(a) The ProspectiveCostsA,ccountshall be maintainedat an institutionthat

qualifies as a "Depositary,"as such term is defined in the Arena Block
(Non-Arena Parcel) Interim Lease. Upon the establishmentof the
ProspectiveCostsAccount,AYRDC shall notify ESDC of the identity of
the LendingInstitution at which the accountis maintainedand the name
and accountnumber.

(b) AYRDC shallfund the Prospective CostsAccountin accordance

with the
requirements
of Parasraph6 below.

(c) Exceptasprovidedin Paragraph2(d) below,AYRDC shallonly withdraw

funds from the ProspectiveCosts Account for application towards
ProspectiveCosts (as hereinafterdefined) in accordancewith Paragraph
3@ Simultaneouslywith each withdrawal, AYRDC shall deliver to
ESDC an Officer's Certificatecertiffing that the funds withdrawn are
either (i) being applied towards ProspectiveCosts and stating with
reasonable particularitythe natureof suchProspectiveCosts,the recipient
of such funds and the amount thereof; or (iD interest or income
distributionsas set forth in Paragraph2(d) below (eachsuchcertificate,a
" WithdrawalCertificate").

(d) Any amountsheld in the ProspectiveCostsAccount may be investedin

PermittedInvestments(as hereinafterdefined). Any interestor income
earned on such Permitted Investmentsshall accrue to and may be
withdrawnby AYRDC from the ProspectiveCostsAccount and be freely
distributableat any time; provided.howeverthat if thereare any losseson
such Permitted Investments,AYRDC shall withdraw funds from the
ProspectiveCostsAccountonly for applicationtowardsProspectiveCosts
until such lossesare recoupedby earningson PermittedInvestments.
AYRDC shall be solely responsiblefor the paymentof any federal,state
or local incomeor othertax applicableto the interestor incomeearnedon
the PermittedInvestmentsand any other costsor expensesin connection
with the Prospective Costs Account. As used herein, "Permitted
Investments"shall include:(i) obligationsof or obligationsguaranteedas
to principal and interest by, the U.S. governmentor any agency or
instrumentalitythereof,when suchobligationsare backedby the full faith
and credit of the United Statesof America; (ii) federalfunds,unsecured
certificatesof deposit,time deposits,banker'sacceptances,and repurchase
agreements having maturitiesof not more than 365 daysof any bank,the

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768570.08-New
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 short-termdebt oblisationsof *frrcf, are rated A-1 bv Standard& Poor's
Ratings Services("3&8"); (iii) depositsthat ur. fully insured by the
FederalDepositInsuranceCorporation;(iv) debt obligationsthat are rated
AA by S&P havingmaturitiesof not morethan 365 days;(v) commercial
paper rated A-1 by S&P; (vi) investmentin money market funds rated
AAAm or AAAm-G by S&P; and (vii) any other investments approvedby
ESDC in its reasonabledisqetion.

3. No later than the last day of January,April, July and Octoberof eachcalendar
year following the Initial AdvanceDate, AYRDC shalldeliver to ESDC an Officer'sCertificate
certiffing AYRDC's compliancewith Paragraphs 5 and 6 of this letter(eachsuchcertificate,an
"ExpendituresCertificate"). Each ExpendituresCertificateshall also certify the following with
respectto (i) the immediatelyprecedingquarterlyperiod (e.g., for the ExpendituresCertificate
due in January,the period betweenOctoberI andDecember31 of the previousyear)and (ii) the
period from the Initial AdvanceDate until the final day of the immediatelyprecedingquarterly
period:

(a) The total amount of AdvancedFunds that have been depositedin the
DepositoryAccount;

(b) The total amount of Advanced Funds that have been withdrawn by
AYRDC from the DepositoryAccount(suchfunds,the "LoanProqeeds");

(c) The total amountof Loan Proceedsthat havebeendepositedby AYRDC

in the ProspectiveCostsAccount;

(d) The total amountof the Loan Proceedsthat havebeenwithdrawnfrom the

ProspectiveCosts Account and applied towards any third-party costs
incurred in connectionwith the developmentof the Project solely after
May 12,2010 (the total amountso applied,the "BfeSpegIwe-eo-SE"), so
long as suchProspectiveCostshave not also been reimbursedout of or
paid for by (i) funds paid to Atlantic Yards DevelopmentCompany,
AYDC Interim Developer,Brooklyn Events Center,Forest City Ratner
Companies,ForestCity Enterprises,Inc., or its Affiliates or subsidiaries
(collectively, "FC Entities") under (i) the State Funding Agreement
(includingfunds payableto ESDC for transferto an FC Entity under the
City Funding Agreement)or (ii) funds transferredto the Series2009
PILOT Bonds Constructionand Acquisition Subaccountin the Senior
PILOT BondsConstructionand AcquisitionAccount of the PILOT Bonds
ProjectFund (as suchtermsare definedin that certainFirst Supplemental
PILOT Indentureof Trust, datedas of DecemberI, 2009, by Brooklyn
ArenaLocal DevelopmentCorporationto The Bank of New York Mellon)
on May 12, 2010 that are subsequentlyrequisitionedby an FC Entity.
Without limiting the foregoing,ProspectiveCosts shall not includecosts
incurredin connectionwith (i) the CompletionAmount (as suchterm is
defined in the Arena DevelopmentLease);(ii) the amountsdepositedon
May 12,2010, by Affiliates of AYRDC into the InfrastructureFund (as

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 such term is defined in that certain Amended and Restated Trust
Agreement,dated as of May 12, 201A, by and betweenAtlantic Yards
DevelopmentCompany,LLC,The City ofNew York (the "City") and The
Bank of New York Mellon); (iii) the Existing Loan Costs; (iv) any
amounts payable (whether debt service, principal or otherwise) with
respectto any financingenteredinto by FC Entities,Onexim Sportsand
EntertainmentHolding USA, Inc., or any of its Affiliates or subsidiaries
on or prior to May 12, 201A; or (v) any developerfee, construction
management fee or other similar fee or paymentto an FC Entity. For the
avoidanceof doubt, ProspectiveCosts shall include costs incurred in
connectionwith (i) paymentsof any CompletionShortfallAmounts (as
suchterm is definedin the ArenaDevelopmentLease)afterMay 12,2010;
and (ii) any amountsdepositedin the InfrastructureFund after May 12,
2010 as may be requiredto allow the Fund Trusteeto disburseamountsin
the BridgeAccount and/orInfrastructureAccount (aseachsuchterms are
defined in the Amended and RestatedTrust Agreement),prqyidgdlha!
such funds are depositedsolely to alleviateany shortfall in the required
balanceofsuchaccounts; and

(e) The total amountof fundsthat havebeenexpendedby AYRDC and/or its

Affiliates to satisfyor otherwisereleasethe liens of certain'mortgages
granted by Affiliates of AYRDC in favor of Gramercy Warehouse
Funding II, LLC (as agent for itself and its assignsand participants,
togetherwith its successorsand assignsin such capacity,the "Existing
Lender")with respectto the premisesdemisedby the ArenaBlock (Non-
Arena Parcel)Interim Leaseand the Block 1129 Interim Lease(such
premises,collectively,the "LeasedPremises";such mortgages,as the
same are amended,restated,supplementedor otherwisemodified from
time to time (exceptas the same may be so assignedto BAITIF), the
"Existing Mortgages";and the total amount so expended,the "E1istin€!
Loan Costs")(it beingagreedthat the ExistingLoan Costsshallincludeall
transactionalcosts (e.g., title insurancepremiums,recordingfees, legal
fees and other third-party expenses)incurred in connectionwith the
satisfaction,. release and/or assignmentto BAITiF of the Existing
Mortgages).

4. In accordancewith and subjectto the termsand conditionsof this letter,AYRDC

shallapply the Loan Proceedstowardsthe costsincurredby AYRDC and its Affiliates after May
72, 201A,in the developmentof certainimprovementscomprisingportionsof the Project (the
"ApprovedImprovements";and the costsso incurred,includingthe reimbursement of AYRDC
and its Affiliates for suchcosts,the "ApprovedCosis"),which Approved Improvements consist
of the following:

(a) the Arena;

(b) the SubwayEntrance;

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 (c) a public spaceandoutdoorpublic plazaadjacentto the Arena;

(d) the UpgradedYard;

(e) the demolitionof existingstructureson the ProjectSite;

(0 the excavation,removal,reroutingand upgradingof municipalwater and

sewer linesin of the constructionof the Project;
support

(e) the constructionof the Carlton Avenue Bridge, togetherwith all work
requiredto completethe same;

(h) the constructionof the Arenaparking;

(D the preparationof developmentsitesaspart of the Project;and

(') acquisitioqassignment
the satisfaction, or release,in full or in part, of
Iiensandencumbrances affectingthe Project(including,without limitation,
the ExistingMortgages).

6.
IN

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 7. In the event that AYRDC or its Affiliates enter into the Additional Loan, then
AYRDC shall apply the frst $40,000,000in loan proceedswithdrawn from the depository
account(or otherwiseavailableto AYRDC) as follows: on a pari passu basis,AYRDC shall
deposit fifty percent (50%) of such loan proceedsin the ProspectiveCosts Account (for
applicationin accordance with Paragraph2 above)and shall apply fifty percent(50%) of such
loan proceeds for any other coststhat are permissibleunder suchsubsequent loan agreement,in
AYRDC's or its Affiliate's sole discretion. ESDC agreesthat it shall execute,deliver and
acknowledgea RecognitionAgreement in form and substancesubstantiallysimilar to the
agreementattachedas Exhibit A to the Undertaking(or otherwise modify a Recognition
Agreement)so asto recognizethe lenderunderthe AdditionalLoan and any mortgagesexecuted
in connection therewith

8. AYRDC shall keep, or causeto be kept,true and completebooks of record and

accountsin respectof mattersgovernedby or relatingto this letter in accordancewith sound
accountingprinciplesconsistentlyappliedand otherwisein accordancewith the requirementsof
the ProjectDocumentation, if any. Suchrecordsshallbe maintainedas aforesaidfor aperiod of
not less than three (3) years after the TerminationDate (as defined in Paragraph12 below);
pqeyidgd,however,that if, at the expirationof suchthree (3) year period, ESDC is seekingto
contestor is contestingany matterrelatingto suchrecordsor any matterto which suchrecords
may be relevant,Tenantshallpreservesuchrecordsuntil one (l) yearafterthe final adjudication,
settlementor otherdispositionof any suchcontest.ESDC and its respectiverepresentatives shall
havethe right from time to time to conductan audit of AYRDC's books of.recordand accounts
relatingto mattersgovernedby or relatingto this letter,and AYRDC shall cooperatewith the
performanceof suchreview. All suchauditsshalloccurduring regularbusinesshoursand upon
not lessthan five (5) BusinesbDays prior notice. Upon the requestof ESDC or its respective
representatives,AY\DC shallproduce,subjectto Paragraph9 below,all books,records,papers,
books of record,files and accountsrelatingto mattersgovernedby or relatingto this letter for
inspectionat AYRDC's place of business. The cost of such review shall be borne solely by
ESDC, except that,if the results of such review determinethat AYRDC, whether or not
inadvertently,has issueda Withdrawal Certificateor an ExpendituresCertificatethat containsa
discrepancythat is more than ten percent (10%), then AYRDC shall pay or reimbursethe

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 reviewingpafty,as applicable,on demandfor the reasonable
costsand expenses
involved in such
review.

g. AYRDC herebyadvisesESDC that certaininformationfurnishedby AYRDC to

ESDC in accordancewith the terms of this letter (including, without limitation, each
ExpendituresCertificateand any materialsdescribedin Paragraph8 above)may contain trade
secrets,the disclosureof which could causeharm to AYRDC's competitiveposition. Subjectto
all Requirements, includingthe Freedomof InformationLaw (Article 6 of the New york State
Public OfficersLaw) ("FOIL"), ESDC will usereasonableefforts to maintainthe confidentiality
of all materialsprovided to ESDC pursuantto the terms of this letter and which are not. to
ESDC'sknowledge,otherwisein the public domain or obtainedfrom third party sourceson a
confidentialbasis;provided,howeverthat the foregoingshall not restrict ESDC from making
any disclosureof such informationas ESDC deemsnecessaryor desirableto provide to othei
agenciesor instrumentalitiesof the Stateof New York, and/orto the respectiveboardof directors
of each,the staff membersof such directors,and/orto ESDC'semployees,legal,financial and
other professionaladvisorsand/orto comply with any applicableRequirements, provided that
ESDC shall in eachcaseinform the partyto which suchdisclosureis madethat suchinformation
is confidential, inform such party of the confidentiality provisions of this letter and use
reasonableefforts to obtain a written undertakingfrom such party to keep such information
confidential. In the event that ESDC is requiredby subpoena,court order or other similar
processto disclosesuch informationor if ESDC receivesany written FOIL requestseeking
disclosureof the materialsdescribedin this Paragraph6, ESDC shall,prior to complyingwitl
such subpoena,court order or similar processor FOIL request,provide AYRDC with written
noticeso that AYRDC shall havean opportunityto seek,at AYRDC's sole cost and expense,a
protectiveorder or other appropriateremedy. If AYRDC doesnot obtain a protectivetrder or
other remedyto precludethe disclosureof the requestedmaterials,AYRDC acknowledges that
ESDC may disclosesuchrequestedmaterials,but shall comply with suchsubpoena,court order,
similar processor FOIL requestby providing the minimum of such requestidmaterialsbeing
soughtas advisedby ESDC'slegal counseland the governmentalor judicial authorityrequiring
suchcompliance.ESDC shall have no liability of any naturefor a breachor failure to comply
with this Paragraoh9.

10' AYRDC shall not be deemedto be in defaultof its obligationsunderthis lerter

unlessESDC hasdeliveredwritten noticeof suchdefaultto AYRDC and AyRDC has failed to
cure the samewithin thirty (30) daysof the date of delivery of such notice,to the extent such
default is not otherwisea Default underthe ProjectDocumentation.The foregoingnotice and
cure period shall not replaceor extendthe applicablecure periods provided under the other
Project Documentation. In the event that A\aRDC fails to cure such default within any
applicablecure period, then at any time thereafterso long as such default is continuing,ESDC
may, uponwrittennoticeto AYRDC, do the following:

(a) Declare an "Event of Default" as defined in section r7.l (Events of

Default) of the DevelopmentAgreement,in which eventESDC would be
entitled to the remediesfor such Event of Default in accordancewith
Section17.2 (Remediesand Damages)of the Deveropment Agreement
(including,without limitation,Section17.2(r)thereof);or

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 (b) in addition to, and without limitation of the remedies set forth in
Paragraph10(a)aboveor Section17.2of the DevelopmentAgreement,
demandthat AYRDC pay as liquidateddamageson the dateof receipt of
written demandthereforby ESDC and on the sameday of eachcalendar
monththereafterthat suchdefault is continuing,an amountwhich shall be
calculatedat a rate of twenty percent (20%) per annum on any Loan
Proceedsthat havebeenmisappliedby AYRDC in violationof Paragraphs
2or fof thisletter.

AYRDC AGREES T}IAT (D TTD AMOLINT OF ACTUAL DAMAGES

TO BE SUSTAiNED BY ESDC UPON THE OCCURRENCEOF ANY
DEFAULT DESCRIBED IN THIS PARAGRAPH l0(b) WOULD BE
MATERIAL, BUT INCAPABLE OF PRECISE CALCULATION AND
NOT READILY ASCERTAINABLE, (Ii) THE AMOUNTS SET FORTH
IN THIS PARAGRAPH lO(b) ARE REASONABLE IN PROPORTION
TO THE PROBABLE DAMAGES LIKELY TO BE SUSTAINED BY
ESDC, (ili) AYRDC HAS HAD THE ADVICE OF COUNSEL OF ITS
OWN SELECTION WHO REVIEWED THE PROVISION FOR THE
PAYMENT OF THE AMOI.INTS SET FORTH IN THIS PARAGRAPH
ioft) IN CONNECTION WITH THE EXECUTION AND DELIVERY
OF THIS LETTER, (IV) THE TERMS OF THIS LETTER WERE
NEGOTIATED AT ARMS LENGTH, AND (V) THE AMOLINTS SET
FORTH IN THIS PARAGRAPH IO(b)ARE NOT INTENDED TO, AND
DO NOT, CONSTITUTE A PENALTY OR PI-'NITIVE DAMAGES
FOR ANY PURPOSES. THE OBLIGATION TO PAY THE
LIQUIDATED DAMAGES PROVIDED IN THIS PARAGRAPH IO(b)
SHALL SURVIVE TFIE EXPIRATION OR EARLIER TERMINATION
OF THIS LETTER.

(c) Seekany and all remediesavailableto ESDC at law or in equity or under

or in connectionwith this letter or any ProjectDocumentation,including
without limitation, specific performance, injunctive relief, and the
recoveryby ESDC from AYRDC of any and all damages,sums,costs,and
expensesincurred by ESDC as a result of or in connectionwith such
default.

IL All noticesand communications to the partieshereunderwill be deliveredby hand

or sentby registeredor certifiedmail, return receiptrequested,or by FederalExpressor other
overnightmail servicethat providesa receiptto the sender,addressed as set forth below. Receipt
of a noticeby the party to whom the notice is transmitted will be deemed to haveoccurredupon
receipt,if handdelivered;five daysfrom the dateof mailing, if mailed; orthe next BusinessDay
aftertransmittalby FederalExpressor otherovernightdeliveryservicethat providesa receiptto
the sender. Notices shall be effectiveupon receipt (as set forth in the precedingsentence),
notwithstandingthe refusalto acceptreceiptor the inability to deliveron accountof a changeof
addresswith respectto which no noticewas given.

if to ESDC:

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 New York StateUrbanDevelopmentCorporation
d/b/aEmpire StateDevelopmentCorporation
633 Third Avenue
New York, New York 10017
Attention:. GeneralCounsel

with a copyto:

Skadden,Arps, Slate,Meagher& Flom LLP

Four Times Square
New York, New York 10036
Attention: Neil L. Rock, Esq.

and

New York City EconomicDevelopmentCorporation

110WilliamStreet
New York, New York 10038
'
Attention: ExecutiveVice Presidentof RealEstateTransactional
Services

and

Corporation
New York City EconomicDevelopment
110William Street
New York, New York 10038
'
Attention: GeneralCounsel

and

New York City Law Department

100ChurchStreet
New York, New York 10007
Division
. .- -. , Attpntion: Qhief.Econo"Alq-qgv-lopment

if to AYRDC:

c/o ForestCity RatnerCompanies,LLC

I MetroTech Center
Brooklyn,New York 11201
Attention: GeneralCounsel

with copiesto:

Inc.
ForestCity Enterprises,
50 PublicSquare,Suite1360,TerminalTower
Cleveland, Ohio 44113
Attention:GeneralCounsel

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 and

Fried,Frank,Harris,Shriver& JacobsonLLP
OneNew York Plaza
New York, New York 10004
Attention:StephenLefkowitz,Esq'

Notwithstanding anything to the contrary herein, copies of Withdrawal Certificates and

ExpenditureCertincatesneedonly be deliveredto ESDC andNYCEDC and not their respective
in-houseor outsidecounsel.

lZ. Except as set forth in Paragraph8 and Paragraph10, the obligationsof AYRDC
with respectto the Initial Loan containedin this letter shall terminate and expire 60 days
following the date of delivery of an ExpenditureCertificatefollowing the satisfactionof all of
the following (a) the withdrawal by AYRDC of all'funds in the DepositoryAccount; (b) the
withdrawalUy eVnOC of all funds in the ProspectiveCostsAccount;and (c) the applicationof
all funds withdrawnfrom the ProspectiveCostsAccount in accordancewith Paragraph2 (such
date,the "TerminationDate"). In the eventAYRDC or its Affiliates enter into the Additional
Loan,thenthe obligationsof AYRDC with respectto the AdditionalLoan containedin this letter
shall terminateand expire 60 days following AYRDC's depositof fifty percent(50%) of such
loanproceedsin the ProspectiveCostsAccountin aceordance with Paragraph7.

13. In the event that AYRDC believes in good faith that any of its obligations
hereunderconflict with any Requirements(includingthe requirementsof the EB-5 Immigrant
Investor Program),then AYRDC shall promptly notify ESDC in reasonabledetail of such
conflict anda proposedresolutionof the same. ESDC shallpromptlyreview suchresolutionand
discretion.
notifu AYRDC whetherit acceptsor rejectsthe same,in its reasonable

14. Notwithstanding anything to the contrary in this letter, no Affiliate, shareholder,

director, partner, member, officer, employee,agent or servant of AYRDC shall be liable
(personallyor otherwise)to ESDC or any other Personunderor by reasonof this letteror any of
the matterscontemplatedby this letter. In no event shall any of the GovernmentalEntities have
any monetary liability or obligation whatsoeverunder this letter, other than the obligations
expresslyset forth in Paragraphs7. 8. 9. and i0.

i5. The City of New York andNYCEDC shallbe third party beneficiarieshereunder,
and shall havethe legaland equitableright, powerandauthorityto seekto: (a) enforcethis letter;
(b) seek any remedy arising out of AYRDC's performanceor failure to perform any term or
conditionof this letterand(c) bring an actionforthe breachof this letter.

16. In the eventthat any interestpayableunderthis letter shall be deemedto exceed

the maximum rate permittedby law, then the amountof interestto be paid shall be the maximum
rate so permitted.

17. This letter shall inureto the benefitof and be bindinguponthe partiesheretoand
their respectivesuccessors and assigns,exceptAYRDC shall not assignits rights or obligations
underthis letterwithout the prior written consentof ESDC.

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 18. Nothing in this letter shall, or shall be deemedto, modify, replace"amend or
otherwisealter any term, conditionor obligationset forth in the ProjectDocumentation.

lg. The provisionsof this lettermay be waived,modified or amended,in whole or in

part, only by an instrumentin writing, executedby the partieshereto. A party'sgiving of its
consentor approvalto any act or requestof anotherparty shall not be deemedto waive or render
unnecessary the consenting/approving party'sconsentto or approvalof any subsequent similar
actsor requests.

20. This letter,the Undertakingand the other ProjectDocumentationcontainall of

the promises,agreements,conditions,inducementsand understandingsbetweenESDC and
AYRDC the matters contemplatedby this letter, and there are no promises, agreements,
conditions,understandings, wanantiesor representations,
inducements, oral or written,expressed
or implied, betweenthem concerningthe matters contemplatedby this letter other than as
expresslyset forth herein. Notwithstandingthe foregoing,nothing containedin this letter is
intendedto terminate,modify or otherwiselimit the applicabilityof the MGPP and any other
ProjectDocumentationrelatingto the Project.

21. This letter may be executedin any number of counterparts(whetherfacsimile,

original, portabledocumentformat or otherwise),each of which when executedand delivered
shall be deemedto be an original, and such counterpartstogethershall constituteone and the
sameletter.

22. This letter shall be governedby, construedand enforcedin accordance with the
laws of the StateofNew York, withoutreferenceto any conflictsof laws provisionsthereofand
without the aid of any rule, canonor customrequiringconstructionagainstthe draftsman.

[No furthertext on this page.]

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 If you are in agreementwith the foregoing,pleasecountersignthis letter in the space
providedbelowand retum a fully executedcopyto our attention.

Verytrulyyours,

NEWYORKSTATEURBANDEVELOPMENT
CORPORATIONDIBIA EMPIRE STATE

v ,tJ'++*
i" q).r../o
ACCEPTEDAND AGREED
DA Y OF DE CE MB E R,2 0 I O
THIS 16 .h

AYDC REGIONAL DEVELOPMENT

COMPANY,LLC

By:
Name:
Title:

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768570.08-New
 If you are in agreementwith the foregoing, pleasecountersignthis letter in the space
providedbelow andreturna fully executedcopyto our attention.

Very truly yours,

NEW YORK STATE URBAN DEVELOPMENT

CORPORATIONDIB/A EMPIRE STATE
DEVELOPMENT CORPORATION

By:
Name:
Title:

ACCEPTEDAND AGREED
THIS 16ftDAY OFDECEMBER,2O1O

AYDC REGIONAL DEVELOPMENT

COMPANY.LLC

By:
L?3t' DavidL. Bertiner
Iltle: Sr. Vice Presicient

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768570.08-New