Coach 2013 Annual Report Download - page 313

Article 7
Real Estate Taxes and PILOT
Section 7.1 Real Estate Taxes and PILOT; Impositions. Until the Units are separately assessed and billed for real estate tax purposes or for
Payments-in-Lieu of Real Property Taxes (“PILOT”), the Board of Managers will pay all real estate taxes and/or PILOT with respect to the Property to the
Department of Finance of The City of New York (or directly to Declarant if and to the extent Declarant has paid such taxes) and allocate the cost thereof (and
all refunds thereof) among all the Units on the basis of their respective Common Interest percentages as set forth in Exhibit B to the Declaration (“ Common
Interest Percentages”) after first allocating to the applicable Unit Owner the full benefit of any real estate tax exemption, abatement or benefit program which,
but for the absence of separate assessment for each Unit, would otherwise have accrued or applied for the tax period in question for such Unit Owner’s benefit.
The Unit Owners shall be responsible and shall pay the Board of Managers for their respective allocated shares (determined as aforesaid), which payments
shall be payable as if the same were Common Charges and will be due at least ten (10) business days prior to the due date of such taxes. Such real estate taxes
and/or PILOT will be paid by the Board of Managers in a timely manner so that no lien will be placed on the Property or on any Unit. When the Units have
been separately assessed, each Unit Owner shall thereafter pay the real estate taxes and/or PILOT assessed with respect to its Unit, and any real estate taxes
and/or PILOT pre-paid by the Board of Managers in respect of the period following such separate assessment shall be appropriately adjusted. A Unit Owner
will not be responsible for the payment of, and will not be subject to any lien arising from, the non-payment of real estate taxes and/or PILOT assessed against
or allocated to any other Unit(s). However, each Unit Owner shall be responsible for the Impositions payable in respect of its Unit. As used herein,
“Impositions” shall mean any of the following imposed by any Federal, State, municipal or other public or quasi-public body, agency, court, department,
bureau, officer or authority having jurisdiction (“Governmental Authorities”): (i) real property general and special assessments (including, without limitation,
any special assessments: (A) for business improvements; or (B) imposed by any special assessment district); (ii) personal property taxes; (iii) commercial
rent or occupancy taxes; (iv) license and permit fees, if and to the extent such fees are not paid by the Board of Managers and charged to the Unit Owners as
part of Common Charges; (v) any fines, penalties and other similar governmental charges applicable to any of the foregoing, together with any interest or costs
with respect to the foregoing; and (vi) any other governmental levies, fees, rents, assessments or taxes and charges, general and special, ordinary and
extraordinary, foreseen and unforeseen, of any kind whatsoever, together with any fines and penalties and any interest or costs with respect thereto.
Section 7.2 Tax Certiorari Proceedings. The Board of Managers, on behalf of and as agent for all or any of the Unit Owners, shall
commence, pursue and settle certiorari proceedings to obtain reduced real estate tax assessments with respect to the respective Units but only to the extent
requested and authorized to do so, in writing, by the appropriate Unit Owners thereof, and provided such Unit Owners indemnify the Board of Managers and
the other Unit Owners from and against all Costs resulting from such proceedings. During the pendency of any such proceedings, all Unit Owners making
such request to the Board of Managers and joining therein shall share in the costs thereof in relative proportion to their respective Common Interest; and upon
the conclusion of any such proceedings, such Persons shall, after retroactive adjustment for any overpayments or underpayments as a result of prior sharing
on the basis of Common Interest, share in the costs thereof in relative proportion to the benefits derived by such Unit Owners therefrom. In the event any Unit
Owner individually seeks to have the assessed valuation of its Unit reduced by bringing a separate certiorari proceeding, the Board of Managers, if necessary
or desirable for such proceeding, will execute any documents or other papers required for, and otherwise cooperate with such Unit Owner (at such Unit
Owner’s cost and expense) in pursuing, such reduction, provided that such Unit Owner indemnifies the Board of Managers from all claims, costs and
expenses (including, without limitation, reasonable attorneys’ fees and expenses) resulting from such proceedings.
Article 8
Alterations, Additions and Improvements of Units
Section 8.1 Maintenance of Units. Each Unit shall be kept in good order and repair in a manner consistent with the standards maintained in
similar first class mixed use office/retail buildings in Manhattan, by the Unit Owner thereof at its sole cost and expense and in compliance with the provisions
of Section 7 of the Declaration. The Unit Owners shall promptly make or perform, or cause to be made or performed, all Maintenance and Repairs necessary
in connection with their respective Maintenance obligations. Each Unit Owner shall have the affirmative duty to maintain its respective Unit in such a manner
so as to prevent and avoid inflicting harm to other Units, Common Elements or the Building.
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