AGREEMENT OF LEASE between SLG GRAYBAR SUBLEASE LLC Landlord and XENOMICS, INC. Tenant Dated as of June 30, 2004 Room 1701 New York, New York
between
SLG
GRAYBAR SUBLEASE LLC
Landlord
and
XENOMICS,
INC.
Tenant
Dated
as of June 30, 2004
Room
1701
000
Xxxxxxxxx Xxxxxx
Xxx
Xxxx, Xxx Xxxx
TABLE
OF CONTENTS
TABLE
OF CONTENTS
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I
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ARTICLE
1
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DEMISE;
PREMISES AND PURPOSE
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2
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ARTICLE
2
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TERM
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3
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ARTICLE
3
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RENT
AND ADDITIONAL RENT
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3
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ARTICLE
4
|
ASSIGNMENT/SUBLETTING
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3
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ARTICLE
5
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DEFAULT
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9
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ARTICLE
6
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RELETTING,
ETC.
|
10
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ARTICLE
7
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LANDLORD
MAY CURE DEFAULTS
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11
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ARTICLE
8
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ALTERATIONS
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11
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ARTICLE
9
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LIENS
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14
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ARTICLE
10
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REPAIRS
|
14
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ARTICLE
11
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FIRE
OR OTHER CASUALTY
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15
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ARTICLE
12
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END
OF TERM
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16
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ARTICLE
13
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SUBORDINATION
AND ESTOPPEL, ETC.
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16
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ARTICLE
14
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CONDEMNATION
|
18
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ARTICLE
15
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REQUIREMENTS
OF LAW
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19
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ARTICLE
16
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CERTIFICATE
OF OCCUPANCY
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19
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ARTICLE
17
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POSSESSION
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20
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ARTICLE
18
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QUIET
ENJOYMENT
|
20
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ARTICLE
19
|
RIGHT
OF ENTRY
|
20
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ARTICLE
20
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INDEMNITY
|
21
|
ARTICLE
21
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LANDLORD'S
LIABILITY, ETC.
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21
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ARTICLE
22
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CONDITION
OF PREMISES
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22
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ARTICLE
23
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CLEANING
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23
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ARTICLE
24
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JURY
WAIVER
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24
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ARTICLE
25
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NO
WAIVER, ETC.
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24
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ARTICLE
26
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OCCUPANCY
AND USE BY TENANT
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25
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ARTICLE
27
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NOTICES
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25
|
ARTICLE
28
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WATER
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26
|
ARTICLE
29
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SPRINKLER
SYSTEM
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26
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ARTICLE
30
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HEAT,
ELEVATOR, ETC.
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26
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ARTICLE
31
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SECURITY
DEPOSIT
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27
|
ARTICLE
32
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TAX
ESCALATION
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28
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ARTICLE
33
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RENT
CONTROL
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30
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ARTICLE
34
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SUPPLIES
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31
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ARTICLE
35
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AIR
CONDITIONING
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31
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ARTICLE
36
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SHORING
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33
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ARTICLE
37
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EFFECT
OF CONVEYANCE, ETC.
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33
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ARTICLE
38
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RIGHTS
OF SUCCESSORS AND ASSIGNS
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33
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ARTICLE
39
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CAPTIONS
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33
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ARTICLE
40
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BROKERS
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34
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ARTICLE
41
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ELECTRICITY
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34
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ARTICLE
42
|
LEASE
SUBMISSION
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38
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ARTICLE
43
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INSURANCE
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39
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ARTICLE
44
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SIGNAGE
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41
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ARTICLE
45
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RIGHT
TO RELOCATE
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42
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ARTICLE
46
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FUTURE
CONDOMINIUM CONVERSION
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43
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ARTICLE
47
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MISCELLANEOUS
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43
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ARTICLE
48
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COMPLIANCE
WITH LAW
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43
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RULES
AND REGULATIONS
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45
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INDEX
OF DEFINED TERMS
TERM
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PAGE
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Additional
Rent
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2
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Alterations
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10
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Base
Tax Year
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27
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Brokers
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33
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Building
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1
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Building
Cleaning Contractor
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23
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Building
Project
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27
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Commencement
Date
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2
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Comparative
Year
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27
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Cooling
Season
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31
|
Declaration
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42
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Delivery
Personnel
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1
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Designated
Agent
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3
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ERIF
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33
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excess
electricity
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35
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Existing
HVAC Equipment
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31
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Expiration
Date
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2
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Fixed
Annual Rent
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2
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HVAC
System
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31
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Landlord
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1
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Landlord’s
Electrical Consultant
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34
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Landlord’s
Relocation Work
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41
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Landlord’s
Restoration Work
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13
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Landlord’s
Work
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22
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Lease
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1
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Leaseback
Area
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4
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Ordinary
Business Hours
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34
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Ordinary
Equipment
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34
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Premises
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1
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Real
Estate Taxes
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28
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Recapture
Date
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4
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Relocation
Effective Date
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41
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Relocation
Notice
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41
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Relocation
Space
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41
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Rent
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2
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Security
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27
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Supplemental
Systems
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31
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Tenant
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1
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Tenant
Cleaning Services
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23
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Tenant’s
Recapture Offer
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4
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Tenant’s
Share
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27
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Term
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2
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LEASE
(this “Lease”)
made as of the ____ day of June 2004 between SLG Graybar Sublease LLC, a
New
York limited liability company having an office c/o XX Xxxxx Realty Corp.,
at
000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx, 00000, hereinafter referred to
as
"Landlord", and Xenomics, Inc., a _______________ corporation, having an
office
located at 000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx, hereinafter referred
to as
"Tenant".
W I T N E S S E T H
Landlord
and Tenant, in
consideration of the mutual agreements herein contained and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, hereby
covenant and agree as follows:
ARTICLE
1
DEMISE;
PREMISES AND PURPOSE
1.01
Landlord
hereby leases and demises to Tenant, and Tenant hereby hires and takes from
Landlord, those certain Premises located on and comprising a rentable portion
of
the seventeenth (17th) floor designated as Room 1701, approximately as indicated
by hatch marks on the plan annexed hereto and made a part hereof as “Exhibit A”
(the “Premises”)
in the building known as and located at 000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx
Xxxx
(the “Building”)
subject to the provisions of this Lease.
1.02
The
Premises shall be used and occupied for executive and general office use
consistent with that found in Class “A” high-rise office buildings located in
midtown Manhattan only and for no other purpose.
1.03
Neither
the Premises, nor the halls, corridors, stairways, elevators or any other
portion of the Building shall be used by the Tenant or the Tenant's servants,
employees, licensees, invitees or visitors in connection with the aforesaid
permitted use or otherwise so as to cause any unreasonable congestion of
the
public portions of the Building or the entranceways, sidewalks or roadways
adjoining the Building whether by trucking or by the congregating or loitering
thereon of the Tenant and/or the servants, employees, licensees, invitees
or
visitors of the Tenant.
1.04
Tenant
shall not permit messengers, delivery personnel or other individuals providing
such services to Tenant (“Delivery
Personnel”)
to: (i) assemble, congregate or to form a line outside of the Premises or
the
Building or otherwise impede the flow of pedestrian traffic outside of the
Premises or Building or (ii) park or otherwise leave bicycles, wagons or
other
delivery carts outside of the Premises or the Building except in locations
outside of the Building designated by Landlord from time-to-time. Tenant
shall
require that all Delivery Personnel to comply with reasonable and
nondiscriminatory rules promulgated by Landlord from time-to-time regarding
the
use of outside messenger services.
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ARTICLE
2
TERM
2.01
The
Premises are leased for a term of approximately seven (7) years (the
"Term")
which shall commence on September 15, 2004 (the “Commencement
Date”)
and shall end on the 30th day of September, 2011 (the “Expiration
Date”)
or on such earlier date upon which the Term shall expire, be canceled or
terminated pursuant to any of the conditions or covenants of this Lease or
pursuant to law.
ARTICLE
3
RENT
AND ADDITIONAL RENT
3.01
Tenant
shall pay fixed annual rent without electricity (the “Fixed
Annual Rent”)
at the rates provided for in the schedule annexed hereto and made a part
hereof
as “Exhibit B” in equal monthly installments in advance on the first
(1st)
day of each calendar month during the Term, except that the first (1st)
monthly installment of Fixed Annual Rent shall be paid by Tenant upon its
execution of this Lease. All sums other than Fixed Annual Rent payable hereunder
shall be deemed to be "Additional
Rent"
and shall be payable on demand, unless other payment dates are hereinafter
provided. Tenant shall pay all Fixed Annual Rent and Additional Rent due
hereunder at the office of Landlord or such other place as Landlord may
designate, payable in United States legal tender, by cash, or by good and
sufficient check drawn on a New York City bank which is a member of the New
York
Clearing House or a successor thereto, and without any set off or deduction
whatsoever. The term "Rent"
as used in this Lease shall mean Fixed Annual Rent and Additional Rent. Landlord
may apply payments made by Tenant towards the payment of any item of Fixed
Annual Rent and/or Additional Rent payable hereunder notwithstanding any
designation by Tenant as to the items against which any such payment should
be
credited.
ARTICLE
4
ASSIGNMENT/SUBLETTING
4.01
Neither
Tenant nor Tenant's legal representatives or successors in interest by operation
of law or otherwise, shall assign, mortgage or otherwise encumber this Lease,
or
sublet or permit all or part of the Premises to be used by others, without
the
prior written consent of Landlord in each instance. The transfer of a majority
of the issued and outstanding capital stock of any corporate tenant or sublessee
of this Lease or a majority of the total interest in any partnership tenant
or
sublessee or company, however accomplished, and whether in a single transaction
or in a series of related or unrelated transactions, the conversion of a
tenant
or sublessee entity to either a limited liability company or a limited liability
partnership or the merger or consolidation of a corporate tenant or sublessee,
shall be deemed an assignment of this Lease or of such sublease. If
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this
Lease is assigned, or if the Premises or any part thereof is underlet or
occupied by anybody other than Tenant, Landlord may, after default by Tenant,
collect rent from the assignee, undertenant or occupant, and apply the net
amount collected to the rent herein reserved, but no assignment, underletting,
occupancy or collection shall be deemed a waiver of the provisions hereof,
the
acceptance of the assignee, undertenant or occupant as tenant, or a release
of
Tenant from the further performance by Tenant of covenants on the part of
Tenant
herein contained. The consent by Landlord to an assignment or underletting
shall
not in any way be construed to relieve Tenant from obtaining the express
consent
in writing of Landlord to any further assignment or underletting. In no event
shall any permitted sublessee assign or encumber its sublease or further
sublet
all or any portion of its sublet space, or otherwise suffer or permit the
sublet
space or any part thereof to be used or occupied by others, without Landlord's
prior written consent in each instance. A modification, amendment or extension
of a sublease shall be deemed a sublease. The listing of the name of a party
or
entity other than that of Tenant on the Building or floor directory or on
or
adjacent to the entrance door to the Premises shall neither grant such party
or
entity any right or interest in this Lease or in the Premises nor constitute
Landlord's consent to any assignment or sublease to, or occupancy of the
Premises by, such party or entity. If any lien is filed against the Premises
or
the Building of which the same form a part for brokerage services claimed
to
have been performed for Tenant in connection with any such assignment or
sublease, whether or not actually performed, the same shall be discharged
within
ten (10) days thereafter, at Tenant's expense, by filing the bond required
by
law, or otherwise, and paying any other necessary sums, and Tenant agrees
to
indemnify Landlord and its agents and hold them harmless from and against
any
and all claims, losses or liability resulting from such lien for brokerage
services rendered. For a period not to exceed ninety (90) days from Landlord’s
receipt of notice from Tenant that Tenant seeks to locate or otherwise identify
a proposed subleasee or assignee for all or a portion of the Premises, or
any
revision or modification of such notice, Tenant hereby grants Landlord’s rental
agent for the Building, or such other licensed real estate broker as shall
be
designated by Landlord from time-to-time (the “Designated
Agent”),
the sole and exclusive right to effect any sublet, assignment, release and
other
disposition of all or any part of the demised Premises and any other space
Tenant has under lease elsewhere in the Building (provided, however, that
Tenant
acknowledges and agrees that such Designated Agent from time to time may
be
obligated to endeavor to rent competitive space available in the Building
on
behalf of and pursuant to the instructions of Landlord or another tenant
of the
Building)
and Tenant shall pay to such Designated Agent upon execution of each such
sublease, assignment, release or other disposition a commission computed
in
accordance with such Designated Agent’s standard rates and rules then in effect
for the locality in which the Building is located.
4.02
If
Tenant desires to assign this Lease or to sublet all or any portion of the
Premises other than pursuant to Section 4.09 hereof, it shall first submit
in
writing to Landlord the documents described in Section 4.06 hereof, and shall
offer in writing (“Tenant’s
Recapture Offer”),
(i) with respect to a prospective assignment, to assign this Lease to Landlord
without any payment of moneys or other consideration therefor, or, (ii) with
respect to a prospective subletting, to sublet to Landlord the portion of
the
Premises involved (“Leaseback
Area")
for the term specified by Tenant in its proposed sublease or, at Landlord's
option for the balance of the term of the Lease less one (1) day, and at
the
lower of (a) Tenant's proposed subrental or (b) the rate of Fixed Annual
Rent
and Additional Rent, and otherwise on the same terms, covenants and conditions
(including provisions relating to escalation rents), as are contained herein
and
as are
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allocable
and applicable to the portion of the Premises to be covered by such subletting.
Tenant’s Recapture Offer shall specify the date when the Leaseback Area will be
made available to Landlord, which date shall be in no event earlier than
forty-five (45) days nor later than ninety (90) days following the acceptance
of
Tenant’s Recapture Offer (the “Recapture
Date”).
If an offer of sublease is made, and if the proposed sublease will result
in all
or substantially all of the Premises being sublet, then Landlord shall have
the
option to extend the term of its proposed sublease for the balance of the
term
of this Lease less one (1) day. Landlord shall have a period of forty-five(45)
days from the receipt of such Tenant’s Recapture Offer to either accept or
reject Tenant’s Recapture Offer or to terminate this Lease.
4.03.
If
Landlord exercises its option to terminate this Lease, then (i) the term
of this
Lease shall end at the election of Landlord either (x) on the date that such
assignment or sublet was to become effective or commence, as the case may
be, or
(y) on the Recapture Date and (ii) Tenant shall surrender to Landlord and
vacate
the Premises on or before such date in the same condition as is otherwise
required upon the expiration of this Lease by its terms, (iii) the Rent and
Additional Rent due hereunder shall be paid and apportioned to such date,
and
(iv) Landlord shall be free to lease the Premises (or any portion thereof)
to
any individual or entity including, without limitation, Tenant’s proposed
assignee or subtenant.
4.04.
If
Landlord shall accept Tenant’s Recapture Offer (i) Tenant shall then execute and
deliver to Landlord, or to anyone designated or named by Landlord, an assignment
or sublease, as the case may be, in either case in a form reasonably
satisfactory to Landlord's counsel; and (ii) Tenant, on demand, shall pay
to
Landlord or its managing agent (as Landlord shall elect) an amount equal
to the
brokerage commissions if any, which would have been otherwise incurred by
Tenant
but for Landlord's accepting Tenant’s Recapture Offer.
If
a sublease is so made it shall expressly:
(i)
permit
Landlord to make further subleases of all or any part of the Leaseback Area
and
(at no cost or expense to Tenant) to make and authorize any and all changes,
alterations, installations and improvements in such space as
necessary;
(ii)
provide
that Tenant will at all times permit reasonably appropriate means of ingress
to
and egress from the Leaseback Area;
(iii)
negate
any intention that the estate created under such sublease be merged with
any
other estate held by either of the parties;
(iv)
provide
that Landlord shall accept the Leaseback Area "as is" except that Landlord,
at
Tenant's expense, shall perform all such work and make all such alterations
as
may be required physically to separate the Leaseback Area from the remainder
of
the Premises and to permit lawful occupancy, it being intended that Tenant
shall
have no other cost or expense in connection with the subletting of the Leaseback
Area;
(v)
provide
that at the expiration of the term of such sublease Tenant will accept the
Leaseback Area in its then existing condition, subject to the obligations
of
Landlord to make
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such
repairs thereto as may be necessary to preserve the Leaseback Area in good
order
and condition, ordinary wear and tear excepted.
4.05
Landlord
shall indemnify and save Tenant harmless from all obligations under this
Lease
as to the Leaseback Area during the period of time it is so sublet, except
for
Fixed Annual Rent and Additional Rent, if any, due under the within Lease,
which
are in excess of the rents and additional sums due under such sublease. Subject
to the foregoing, performance by Landlord, or its designee, under a sublease
of
the Leaseback Area shall be deemed performance by Tenant of any similar
obligation under this Lease and any default under any such sublease shall
not
give rise to a default under a similar obligation contained in this Lease,
nor
shall Tenant be liable for any default under this Lease or deemed to be in
default hereunder if such default is occasioned by or arises from any act
or
omission of the tenant under such sublease or is occasioned by or arises
from
any act or omission of any occupant holding under or pursuant to any such
sublease. Notwithstanding anything contained to the contrary in this Lease,
at
the end of the Term, Tenant shall not be obligated for the cost of or for
the
physical removal of any alterations made in the Leaseback Area by Landlord
or
Landlord’s subtenants.
4.06
Whether
or not Landlord’s consent is required to a specific assignment or sublease,
Tenant shall submit in writing to Landlord (i) the name and address of the
proposed assignee or sublessee, (ii) a fully negotiated terms sheet, including
all of the material term of the agreement and not subject to further negotiation
of the proposed agreement of assignment or sublease, (iii) reasonably
satisfactory information as to the nature and character of the business of
the
proposed assignee or sublessee and as to the nature of its proposed use of
the
space, and (iv) banking, financial or other credit information relating to
the
proposed assignee or sublessee reasonably sufficient to enable Landlord to
determine the financial responsibility and character of the proposed assignee
or
sublessee.
4.07.
If
Landlord shall not have accepted Tenant’s Recapture Offer and Landlord shall not
have terminated this Lease, as provided for in Section 4.02 hereof, then
Landlord will not unreasonably withhold or delay its consent to Tenant's
request
for consent to such specific assignment or subletting for the use permitted
under this Lease within the forty-five (45) day period as provided in Section
4.02 of this Article, provided that:
(i)
The
Premises shall not, without Landlord's prior consent, have been listed or
otherwise publicly advertised for assignment or subletting at a rental rate
lower than the higher of (a) the Fixed Annual Rent and all Additional Rent
then
payable, or (b) the then prevailing rental rate for other space in the Building
the foregoing will not, however, prevent Tenant from actually subleasing
or
assigning the Premises for less than (a) the Fixed Annual Rent and all
Additional Rent then payable, or (b) the then prevailing rental rate for
other
space in the Building, pursuant to the terms of this Lease;
(ii)
The
proposed assignee or subtenant shall have a financial standing, be of a
character, be engaged in a business, and propose to use the Premises, in
a
manner consistent with the permitted use and in keeping with the standards
of
the Building;
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(iii)
The
proposed assignee or subtenant shall not then be a tenant, subtenant, assignee
or occupant of any space in the Building, nor shall the proposed assignee
or
subtenant be a person or entity who has dealt with Landlord or Landlord's
agent
(directly or through a broker) with respect to space in the Building during
the
three (3) months immediately preceding Tenant's request for Landlord's consent
and provided that there is then no other comparable space available for leasing
in the Building;
(iv)
The
character of the business to be conducted in the Premises by the proposed
assignee or subtenant shall not be likely to increase, by more than a de
minimus
amount, operating expenses or the burden on existing cleaning services,
elevators or other services and/or systems of the Building;
(v)
In
case of a subletting, the subtenant shall be expressly subject to all of
the
obligations of Tenant under this Lease and the further condition and restriction
that such sublease shall not be assigned, encumbered or otherwise transferred
or
the Premises further sublet by the subtenant in whole or in part, or any
part
thereof suffered or permitted by the subtenant to be used or occupied by
others,
without the prior written consent of Landlord in each instance;
(vi)
No
subletting shall end later than one (1) day before the Expiration Date nor
shall
any subletting be for a term of less than two (2) years unless it commences
less
than two (2) years before the Expiration Date;
(vii)
At
no time shall there be more than two (2) occupants, including Tenant, in
the
Premises;
(viii)
Tenant
shall reimburse Landlord on demand for any reasonable costs, including
attorneys' fees and disbursements, that may be incurred by Landlord in
connection with said assignment or sublease;
(ix)
The
character of the business to be conducted in the Premises by the proposed
assignee or subtenant shall not require any alterations, installations,
improvements, additions or other physical changes (other than changes to
signage) to be performed, or made to, any portion of the Building or the
Real
Property other than the Premises; and
(x)
The
proposed assignee or subtenant shall not be any entity which is entitled
to
diplomatic or sovereign immunity or which is not subject to service of process
in the State of New York or to the jurisdiction of the courts of the State
of
New York and the United States located in New York County.
4.08
Any
consent of Landlord under this Article shall be subject to the terms of this
Article and conditioned upon there being no default by Tenant, beyond any
grace
period, under any of the terms, covenants and conditions of this Lease at
the
time that Landlord's consent to any such subletting or assignment is requested
and on the date of the commencement of the term of any proposed sublease
or the
effective date of any proposed assignment. Tenant acknowledges and agrees
that
no assignment or subletting shall be effective unless and until Tenant, upon
receiving any necessary Landlord's written consent (and unless it was
theretofore delivered to
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Landlord)
causes a duly executed copy of the sublease or assignment to be delivered
to
Landlord within ten (10) days after execution thereof. Any such sublease
shall
provide that the sublessee shall comply with all applicable terms and conditions
of this Lease to be performed by the Tenant hereunder. Any such assignment
of
this Lease shall contain an assumption by the assignee of all of the terms,
covenants and conditions of this Lease to be performed by the
Tenant.
4.09.
A.
Anything
hereinabove contained to the contrary notwithstanding, Landlord’s consent shall
not be required and Landlord’s right of recapture and/or termination, as
otherwise provided for in this Article 4, shall not apply in the event of
an
assignment of this Lease, or sublease of all or part of the Premises, to
the
parent of Tenant or to a wholly-owned subsidiary or affiliate of Tenant or
of
said parent of Tenant, provided that the net worth of transferor or sublessor,
after such transaction, is not less than its net worth as of (a) the
Commencement Date or (b) the day immediately prior to such transaction,
whichever is greater, and provided also that Landlord receives prior written
notice thereof including reasonable supporting documentation regarding all
of
the foregoing and finally provided that any such transaction complies with
the
other provisions of this Article .
B.
Anything
hereinabove contained to the contrary notwithstanding, Landlord’s consent shall
not be required and Landlord’s right of recapture and/or termination, as
otherwise provided for in this Article 4, shall not apply in the event of
an
assignment of this Lease, or sublease of all or part of the Premises, to
any
corporation (i) to which substantially all the assets of Tenant are transferred
or (ii) into which Tenant may be merged or consolidated, provided that the
net
worth, experience and reputation of such transferee or of the resulting or
surviving corporation, as the case may be, is equal to or greater than the
net
worth experience and reputation of Tenant and of any guarantor of this Lease
(if
applicable) immediately prior to such transfer and provided, also, that any
such
transaction complies with the other provisions of this Article.
4.10
If
Landlord shall not have accepted Tenant’s Recapture Offer hereunder and Landlord
has not elected to terminate this Lease, and Tenant effects any assignment
or
subletting (other than pursuant to Section 4.09 above), then Tenant thereafter
shall pay to Landlord a sum equal to fifty (50%) percent of (a) any rent
or
other consideration payable to Tenant by any subtenant (after deducting the
cost
of Tenant, if any, in effecting the subletting or assignment, for reasonable
alteration costs, advertising expenses, brokerage commissions and legal fees)
which is in excess of the rent allocable to the subleased space which is
then
being paid by Tenant to Landlord pursuant to the terms hereof, and (b) any
other
profit or gain realized by Tenant (after deducting the cost of Tenant, if
any,
in effecting the subletting or assignment, for reasonable alteration costs,
advertising expenses, brokerage commissions and legal fees not previously
deducted above) from any such subletting or assignment. The foregoing amounts
shall be payable to Landlord only if, as and when, the same are received
by
Tenant from said assignee or sublessee.
4.11.
In
no event shall Tenant be entitled to make, nor shall Tenant make, any claim,
and
Tenant hereby waives any claim, for money damages (nor shall Tenant claim
any
money damages by way of set-off, counterclaim or defense) based upon any
claim
or assertion by Tenant that Landlord has unreasonably withheld or unreasonably
delayed its consent or approval to
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a
proposed assignment or subletting as provided for in sections 4.02 and 4.07
of
this Article. Tenant's sole remedy shall be an action or proceeding to enforce
any such provision, or for specific performance, injunction or declaratory
judgment.
4.12
Notwithstanding
anything to the contrary herein contained, Tenant shall be permitted to license
up to twenty five (25%) percent of the Premises for “desk space for uses
permitted under this Lease only, provided that (i) any such offices or
workstations do not have separate entrances to the public corridor, (ii)
Landlord is delivered advance notice of each such licensing including, without
limitation, the name, address and bank references of each such licensee and
the
material terms and conditions of each such license, and (iii) each such license
otherwise complies with the provisions of this Lease.
ARTICLE
5
DEFAULT
5.01
Landlord
may terminate this Lease on five (5) days' notice: (a) if Fixed Annual Rent
or
Additional Rent is not paid within five (5) days after written notice from
Landlord; or (b) if Tenant shall have failed to cure a default in the
performance of any covenant of this Lease (except the payment of Rent), or
any
rule or regulation hereinafter set forth, within fifteen (15) days after
written
notice thereof from Landlord, or if default cannot be completely cured in
such
time, if Tenant shall not promptly proceed to cure such default within said
fifteen (15) days, or shall not complete the curing of such default with
due
diligence; or (c) when and to the extent permitted by law, if a petition
in
bankruptcy shall be filed by or against Tenant or if Tenant shall make a
general
assignment for the benefit of creditors, or receive the benefit of any
insolvency or reorganization act; or (d) if a receiver or trustee is appointed
for any portion of Tenant's property and such appointment is not vacated
within
twenty-five (25) days; or (e) if an execution or attachment shall be issued
under which the Premises shall be taken or occupied or attempted to be taken
or
occupied by anyone other than Tenant; or (f) if the Premises become and remain
deserted for a period of fifteen (15) days; or (g) if Tenant shall default
beyond any grace period under any other lease between Tenant and Landlord.
At
the expiration of the five (5) day notice period, this Lease and any rights
of
renewal or extension thereof shall terminate as completely as if that were
the
date originally fixed for the expiration of the Term of this Lease, but Tenant
shall remain liable as hereinafter provided.
5.02
In
the event that Tenant is in arrears for Fixed Annual Rent or any item of
Additional Rent, Tenant waives its right, if any, to designate the items
against
which payments made by Tenant are to be credited and Landlord may apply any
payments made by Tenant to any items which Landlord in its sole discretion
may
elect irrespective of any designation by Tenant as to the items against which
any such payment should be credited.
5.03
Tenant
shall not seek to remove and/or consolidate any summary proceeding brought
by
Landlord with any action commenced by Tenant in connection with this Lease
or
Tenant's use and/or occupancy of the Premises.
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5.04
In
the event of a default by Landlord hereunder, no property or assets of Landlord,
or any principals, shareholders, officers, directors, partners or members
of
Landlord, whether disclosed or undisclosed, other than the Building in which
the
Premises are located and the land upon which the Building is situated, shall
be
subject to levy, execution or other enforcement procedure for the satisfaction
of Tenant's remedies under or with respect to this Lease, the relationship
of
Landlord and Tenant hereunder or Tenant's use and occupancy of the
Premises.
ARTICLE
6
RELETTING,
ETC.
6.01
If
Landlord shall re-enter the Premises on the default of Tenant, by summary
proceedings or otherwise: (a) Landlord may re-let the Premises or any part
thereof, as Tenant's agent, in the name of Landlord, or otherwise, for a
term
shorter or longer than the balance of the term of this Lease, and may grant
concessions or free rent; (b) Tenant shall pay Landlord any deficiency between
the rent hereby reserved and the net amount of any rents collected by Landlord
for the remaining term of this Lease, through such re-letting. Such deficiency
shall become due and payable monthly, as it is determined. Landlord shall
have
no obligation to re-let the Premises, and its failure or refusal to do so,
or
failure to collect rent on re-letting, shall not affect Tenant's liability
hereunder. In computing the net amount of rents collected through such
re-letting, Landlord may deduct all expenses incurred in obtaining possession
or
re-letting the Premises, including legal expenses and fees, brokerage fees,
the
cost of restoring the Premises to good order, and the cost of all alterations
and decorations deemed necessary by Landlord to effect re-letting. In no
event
shall Tenant be entitled to a credit or repayment for rerental income which
exceeds the sums payable by Tenant hereunder or which covers a period after
the
original term of this Lease; (c) Tenant hereby expressly waives any right
of
redemption granted by any present or future law. "Re-enter" and "re-entry"
as
used in this Lease are not restricted to their technical legal meaning. In
the
event of a breach or threatened breach of any of the covenants or provisions
hereof, Landlord shall have the right of injunction. Mention herein of any
particular remedy shall not preclude Landlord from any other available remedy;
(d) Landlord shall recover as liquidated damages, in addition to accrued
rent
and other charges, if Landlord's re-entry is the result of Tenant's bankruptcy,
insolvency, or reorganization, the full rental for the maximum period allowed
by
any act relating to bankruptcy, insolvency or reorganization.
6.02
If
Landlord re-enters the Premises for any cause, or if Tenant abandons the
Premises, or after the expiration of the term of this Lease, any property
left
in the Premises by Tenant shall be deemed to have been abandoned by Tenant,
and
Landlord shall have the right to retain or dispose of such property in any
manner without any obligation to account therefor to Tenant. If Tenant shall
at
any time default hereunder, and if Landlord shall institute an action or
summary
proceeding against Tenant based upon such default in which Landlord prevails,
then Tenant will reimburse Landlord for the legal expenses and fees thereby
incurred by Landlord.
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ARTICLE
7
LANDLORD
MAY CURE DEFAULTS
7.01
If
Tenant shall default in performing any covenant or condition of this Lease
after
notice and beyond any applicable cure period, Landlord may perform the same
for
the account of Tenant, and if Landlord, in connection therewith, or in
connection with any default by Tenant, makes any expenditures or incurs any
obligations for the payment of money, including but not limited to reasonable
attorney's fees, such sums so paid or obligations incurred shall be deemed
to be
Additional Rent hereunder, and shall be paid by Tenant to Landlord within
fifteen (15) days of rendition of any xxxx or statement therefor, and if
Tenant's lease term shall have expired at the time of the making of such
expenditures or incurring of such obligations, such sums shall be recoverable
by
Landlord as damages.
ARTICLE
8
ALTERATIONS
8.01
Tenant
shall make no alteration, addition or improvement in the Premises, without
the
prior written consent of Landlord which consent shall not be unreasonably
withheld, conditioned or delayed, and then only by contractors or mechanics
and
in such manner and time, and with such materials, as reasonably approved
by
Landlord. All alterations, additions or improvements to the Premises, including
air-conditioning equipment and duct work, except movable office furniture
(including movable partitions) and trade equipment installed at the expense
of
Tenant, shall, unless Landlord elects otherwise in writing, become the property
of Landlord, and shall be surrendered with the Premises, at the expiration
or
sooner termination of the term of this Lease. Any such alterations, additions
and improvements which Landlord shall designate at the time Landlord grants
its
consent to the installation of same shall be removed by Tenant and any damage
repaired, at Tenant's expense, prior to the expiration of this Lease.
Notwithstanding anything contained herein to the contrary, Tenant shall not
be
required to obtain Landlord’s prior written consent or approval for any
nonstructural, purely decorative, interior improvements to the Premises
(including painting, carpeting or the installation of wall coverings) provided,
however that said improvements do not consist of changes or modifications
to any
Building plumbing, electrical, air conditioning or other Building wide systems.
8.02
Anything
hereinabove to the contrary notwithstanding, Landlord will not unreasonably
withhold or delay approval of written requests of Tenant to make nonstructural
interior alterations (which are not purely decorative as described in Article
8.01 above), additions and improvements (herein referred to as "Alterations")
in the Premises, provided that such Alterations do not affect utility services
or plumbing and electrical lines or other systems of the Building and do
not
affect and are not visible from any portion of the Building outside of the
Premises. All Alterations shall be performed in accordance with the following
conditions:
(i)
Prior
to the commencement of any Alterations costing more than $15,000.00, Tenant
shall first submit to Landlord for its approval detailed
dimensioned
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coordinated
plans and specifications, including layout, architectural, mechanical,
electrical, plumbing and structural drawings for each proposed Alteration.
Landlord shall be given, in writing, a good description of all other
Alterations.
(ii)
All
Alterations in and to the Premises shall be performed in a good and workmanlike
manner and in accordance with the Building’s rules and regulations governing
Tenant Alterations. Prior to the commencement of any such Alterations, Tenant
shall, at its sole cost and expense, obtain and exhibit to Landlord any
governmental permit required in connection with such Alterations. In order
to
compensate Landlord for its general conditions and the costs incurred by
Landlord in connection with Tenant’s performance of Alterations in and/or to the
Premises (including, without limitation, the costs actually incurred by Landlord
and paid to independent third parties in connection with the coordination
of
Alterations which may affect systems or services of the Building or portions
of
the Building outside of the Premises), Tenant shall pay to Landlord a fee
equal
to five (5%) percent of the cost of such Alterations, however, notwithstanding
anything contained herein to the contrary, the aforementioned fee shall not
exceed the sum of $1,500.00 for any such single plan for Alterations. Such
fee
shall be paid by Tenant as Additional Rent hereunder within ten (10) days
following receipt of an invoice therefor.
(iii)
All
Alterations shall be done in compliance with all other applicable provisions
of
this Lease and with all applicable laws, ordinances, directions, rules and
regulations of governmental authorities having jurisdiction, including, without
limitation, the Americans with Disabilities Act of 1990 and New York City
Local
Law No. 57/87 and similar present or future laws, and regulations issued
pursuant thereto, and also New York City Local Law No. 76 and similar present
or
future laws, and regulations issued pursuant thereto, on abatement, storage,
transportation and disposal of asbestos and other hazardous materials, which
work, if required, shall be effected at Tenant's sole cost and expense, by
contractors and consultants approved by Landlord and in strict compliance
with
the aforesaid rules and regulations and with Landlord's rules and regulations
thereon. Any changes required by Tenant’s p[articular manner of use of the
Premises (as opposed to general office use) shall be paid for by Tenant.
(iv)
All
work shall be performed by duly licensed and insured professionals whose
presence at the Premises or the Building will not result in any labor unrest,
dispute, slowdown, strike or disharmony whatsoever by labor rendering or
scheduled to render services at or within, or delivering goods or materials
to
the Building, in which event Tenant shall immediately and permanently cease
its
use of the professional(s) whose presence at the Premises or the Building
was
the basis for such unrest, slowdown or strike. Notwithstanding anything
contained herein to the contrary, if the use by Tenant of any contractor,
subcontractor, vendor, supplier or any other party causes or threatens to
cause
or create any work stoppage, picketing, labor disruption, dispute or disharmony
of any nature whatsoever, Tenant shall immediately discontinue the use of
such
party and take such other remedial measures as may be necessary in order
to
restore labor harmony.
(v)
Tenant
shall keep the Building and the Premises free and clear of all liens for
any
work or material claimed to have been furnished to Tenant or to the Premises.
(vi)
Prior
to the commencement of any work by or for Tenant, Tenant shall furnish to
Landlord certificates evidencing the existence of the following
insurance:
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(a)
Workmen's
compensation insurance covering all persons employed for such work and with
respect to whom death or bodily injury claims could be asserted against
Landlord, Tenant or the Premises.
(b)
Broad
form general liability insurance written on an occurrence basis naming Tenant
as
an insured and naming Landlord and its designees as additional insureds,
with
limits of not less than $3,000,000 combined single limit for personal injury
in
any one occurrence, and with limits of not less than $500,000 for property
damage (the foregoing limits may be revised from time to time by Landlord
to
such higher limits as Landlord from time to time reasonably requires). Tenant,
at its sole cost and expense, shall cause all such insurance to be maintained
at
all time when the work to be performed for or by Tenant is in progress. All
such
insurance shall be obtained from a company authorized to do business in New
York
and shall provide that it cannot be canceled without thirty (30) days prior
written notice to Landlord. All polices, or certificates therefor, issued
by the
insurer and bearing notations evidencing the payment of premiums, shall be
delivered to Landlord. Blanket coverage shall be acceptable, provided that
coverage meeting the requirements of this paragraph is assigned to Tenant's
location at the Premises.
(vii)
In
granting its consent to any Alteration, Landlord may impose such conditions
as
to guarantee of completion (including, without limitation, requiring Tenant
to
temporarily post additional security or a bond to insure the completion of
such
Alterations, payment, restoration or otherwise), as Landlord may reasonably
require.
(viii)
All
work to be performed by Tenant shall be done in a manner which will not
interfere with or disturb other tenants and occupants of the
Building.
(xi)
The
review and/or approval by Landlord, its agents, consultants and/or contractors,
of any Alteration or of plans and specifications therefor and the coordination
of such Alteration work with the Building, as described in part above, are
solely for the benefit of Landlord, and neither Landlord nor any of its agents,
consultants or contractors shall have any duty toward Tenant; nor shall Landlord
or any of its agents, consultants and/or contractors be deemed to have made
any
representation or warranty to Tenant, or have any liability, with respect
to the
safety, adequacy, correctness, efficiency or compliance with laws of any
plans
and specifications, Alterations or any other matter relating thereto.
(x)
Promptly
following the substantial completion of any Alterations, Tenant shall submit
to
Landlord: (a) one (1) sepia and one (1) copy on floppy disk (using a current
version of Autocad or such other similar software as is then commonly in
use) of
final, “as-built” plans for the Premises showing all such Alterations and
demonstrating that such Alterations were performed substantially in accordance
with plans and specifications first approved by Landlord and (b) an itemization
of Tenant’s total construction costs, detailed by contractor, subcontractors,
vendors and materialmen; bills, receipts, lien waivers and releases from
all
contractors, subcontractors, vendors and materialmen; architects' and Tenant's
certification of completion, payment and acceptance, and all governmental
approvals and confirmations of completion for such Alterations.
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ARTICLE
9
LIENS
9.01
Prior
to commencement of its work in the Premises, Tenant shall obtain and deliver
to
Landlord a written letter of authorization, in form satisfactory to Landlord's
counsel, signed by all architects, engineers and designers to become involved
in
such work, which shall confirm that any of their drawings or plans are to
be
removed from any filing with governmental authorities on request of Landlord,
in
the event that said architect, engineer or designer thereafter no longer
is
providing services with respect to the Premises. With respect to contractors,
subcontractors, materialmen and laborers, and architects, engineers and
designers, for all work or materials to be furnished to Tenant at the Premises,
Tenant agrees to obtain and deliver to Landlord written and unconditional
waiver
of mechanics liens upon the Premises or the Building after payments to the
contractors, etc., subject to any then applicable provisions of the Lien
Law.
Notwithstanding the foregoing, Tenant at its expense shall cause any lien
filed
against the Premises or the Building, for work or materials claimed to have
been
furnished to Tenant, to be discharged of record within ten (10) days after
notice thereof.
ARTICLE
10
REPAIRS
10.01
Tenant
shall take good care of the Premises and the fixtures and appurtenances therein,
and shall make all non-structural repairs necessary to keep them in good
working
order and condition, and all structural repairs when those are necessitated
by
the act, omission, carelessness, improper conduct or negligence of Tenant
or its
agents, employees, invitees or contractors, subject to the provisions of
Article
11 hereof. During the term of this Lease, Tenant may have the use of any
air-conditioning equipment servicing the Premises, subject to the provisions
of
Article 35 of this Lease, and shall reimburse Landlord, in accordance with
Article 41 of this Lease, for electricity consumed by the equipment. The
exterior walls and roofs of the Building, the mechanical rooms, service closets,
shafts, areas above any hung ceiling and the windows and the portions of
all
window xxxxx outside same are not part of the Premises demised by this Lease,
and Landlord hereby reserves all rights to such parts of the Building. Tenant
shall not paint, alter, drill into or otherwise change the appearance of
the
windows including, without limitation, the xxxxx, jambs, frames, sashes,
and
meeting rails.
10.02
Landlord
shall maintain and repair the structural portions of the Building and all
Building systems and equipment up to the point of entry to the Premises,
at its
cost and expense, except where the need for such maintenance or repairs is
caused by the negligence or willful misconduct of Tenant, its members, partners,
directors, officers, employees, representatives, servants, invitees, permitted
subtenant or permitted licensees, in which event such maintenance and repair
shall be performed at Tenant’s cost and expense, payable as additional rent
hereunder.
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ARTICLE
11
FIRE
OR OTHER CASUALTY
11.01
Damage
by fire or other casualty to the Building and to the core and shell of the
Premises (excluding the tenant improvements and betterments and Tenant's
personal property) shall be repaired with due diligence at the expense of
Landlord (“Landlord’s
Restoration Work”),
but without prejudice to the rights of subrogation, if any, of Landlord's
insurer to the extent not waived herein. Landlord shall not be required to
repair or restore any of Tenant's property or any alteration, installation
or
leasehold improvement made by Tenant in and/or to the Premises. If, as a
result
of such damage to the Building or to the core and shell of the Premises,
the
Premises are rendered untenantable, the Rent shall xxxxx in proportion to
the
portion of the Premises not usable by Tenant from the date of such fire or
other
casualty until Landlord’s Restoration Work is substantially completed. Landlord
shall not be liable to Tenant for any delay in performing Landlord’s Restoration
Work, for so long as Landlord proceeds in a diligently and in a commercially
reasonable manner Tenant's sole remedy being the right to an abatement of
Rent,
as provided above. Tenant shall cooperate with Landlord in connection with
the
performance by Landlord of Landlord’s Restoration Work. If the Premises are
rendered wholly untenantable by fire or other casualty and if Landlord shall
decide not to restore the Premises, or if the Building shall be so damaged
that
Landlord shall decide to demolish it or not to rebuild it (whether or not
the
Premises have been damaged), Landlord may within ninety (90) days after such
fire or other cause give written notice to Tenant of its election that the
term
of this Lease shall automatically expire no less than ten (10) days after
such
notice is given. Notwithstanding the foregoing, each party shall look first
to
any insurance in its favor before making any claim against the other party
for
recovery for loss or damage resulting from fire or other casualty, and to
the
extent that such insurance is in force and collectible and to the extent
permitted by law, Landlord and Tenant each hereby releases and waives all
right
of recovery against the other or any one claiming through or under each of
them
by way of subrogation or otherwise. The foregoing release and waiver shall
be in
force only if both releasors' insurance policies contain a clause providing
that
such a release or waiver shall not invalidate the insurance and also, provided
that such a policy can be obtained without additional premiums. Tenant hereby
expressly waives the provisions of Section 227 of the Real Property Law and
agrees that the foregoing provisions of this Article shall govern and control
in
lieu thereof.
11.02
In
the event that the Premises has been damaged or destroyed and this Lease
has not
been terminated in accordance with the provisions of this Article, Tenant
shall
(i) cooperate with Landlord in the restoration of the Premises and shall
remove
from the Premises as promptly as reasonably possible all of Tenant's salvageable
inventory, movable equipment, furniture and other property and (ii) repair
the
damage to the tenant improvements and betterments and Tenant’s personal property
and restore the Premises within one hundred eighty (180) days following the
date
upon which the core and shell of the Premises shall have been substantially
repaired by Landlord.
11.03.
In the event that the Premises and/or access thereto are rendered substantially
untenantable or unusable, as the case may be, due to fire or other casualty
during the last year of the Term of this Lease and/or Landlord has not restored
or repaired the Premises or
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access
thereto, as the case may be, within one hundred and eighty (180) days after
such
fire or casualty then, and in such event, Tenant may elect to cancel this
Lease
upon written notice to Landlord within thirty (30) days after the end of
such
one hundred and eighty (180) day period and the term of this Lease shall
expire
on the date set forth therein which shall be not less than ten (10) days
after
the date such notice is given (the "Cancellation Date") provided that Tenant
surrenders to Landlord possession of the Premises on or before the Cancellation
Date.
ARTICLE
12
END
OF TERM
12.01
Tenant
shall surrender the Premises to Landlord at the expiration or sooner termination
of this Lease in good order and condition, except for reasonable wear and
tear
and damage by fire or other casualty, and Tenant shall remove all of its
property. Tenant agrees it shall indemnify and save Landlord harmless against
all costs, claims, loss or liability resulting from delay by Tenant in so
surrendering the Premises, including, without limitation, any claims made
by any
succeeding tenant founded on such delay. The parties recognize and agree
that
the damage to Landlord resulting from any failure by Tenant timely to surrender
the Premises will be substantial, will exceed the amount of monthly Rent
theretofore payable hereunder, and will be impossible of accurate measurement.
Tenant therefore agrees that if possession of the Premises is not surrendered
to
Landlord within one (1) day after the date of the expiration or sooner
termination of the Term of this Lease, then Tenant will pay Landlord as
liquidated damages for each month and for each portion of any month during
which
Tenant holds over in the Premises after expiration or termination of the
Term of
this Lease, a sum equal to two (2) times the average Rent and Additional
Rent
which was payable per month under this Lease during the last six months of
the
Term thereof. The aforesaid obligations shall survive the expiration or sooner
termination of the Term of this Lease. At any time during the Term of this
Lease, Landlord may exhibit the Premises to prospective purchasers or mortgagees
of Landlord's interest therein. During the last year of the term of this
Lease,
Landlord may exhibit the Premises to prospective tenants.
ARTICLE
13
SUBORDINATION
AND ESTOPPEL, ETC.
13.01
This
Lease is and shall be subject and subordinate to all present and future ground
leases, underlying leases and to all subleases of the entire premises demised
by
that certain ground lease (hereinafter referred to as the “Mesne Lease”) dated
December 30, 1957 and recorded in the office of the Register of the City
of New
York in the County of New York on December 31, 1957, in Liber 5024 of
Conveyances, Page 430 of which the premises hereby demised form a part (the
Mesne Lease and any or all present and future ground leases underlying leases
and subleases of the entire premises demised by the Mesne Lease are hereunder
referred to as the "ground leases" and the lessors and lessees thereunder
are
hereinafter referred to respectively as the "ground lessors" and "ground
lessees" ) and to all renewals, modifications,
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replacements
and extensions of the ground leases, and to all present and future mortgages
affecting such ground leases (such mortgages are hereinafter referred to
as the
"mortgages" and the mortgagees thereunder are hereinafter referred to as
the
"the mortgagees") including, without limitation, that certain Amended and
Restated Indenture of Leasehold Mortgage, Security Agreement, Financing
Statement, Fixture Filing and Assignment of Leases, Rents and Security Deposits,
dated as of May 21, 1999 by and between SLG Graybar Mesne Lease LLC and SLG
Graybar Sublease LLC, as mortgagor, and German American Capital Corporation,
as
mortgagee, and to all renewals, modifications, replacements and extensions
of
the mortgages.
13.02
Notwithstanding
the subordination of this Lease to all ground leases and mortgages, this
Lease
shall not terminate or be terminable by Tenant by reason of the expiration
or
earlier termination or cancellation of any ground lease in accordance with
its
terms or by reason of the foreclosures of any mortgage, except that this
lease
may be terminated if Tenant is named as a party and served with process in
a
summary or other proceeding brought by the lessor under the Mesne Lease
(hereinafter referred to as the "Mesne Lessor") for the possession of the
premises demised by the Mesne Lease or the space occupied by Tenant, or in
such
proceeding brought with the written consent of the Mesne Lessor delivered
to
Tenant, and a final order or judgment is entered, and a warrant for possession
of such space issued and executed against the defendants or respondents in
such
proceedings.
13.03
Tenant
agrees that if this Lease terminates, expires or is canceled for any reason
or
by any means whatsoever (other than by a summary or other proceeding brought
by
the Mesne Lessor or with the Mesne Lessor's written consent delivered to
Tenant,
in which summary or other proceeding Tenant is made a party and in which
a final
order or judgment is entered and warrant for possession is issued and executed
against Tenant) and Mesne Lessor or a ground lessor so elects by written
notice
to Tenant, this lease shall automatically be reinstated for the balance of
the
term which would have remained but for such termination, expiration or
cancellation, at the same rental, and upon the same agreements, covenants,
conditions, restrictions and provisions herein contained, with the same rental,
and upon the same agreements, covenants, conditions, restrictions and provisions
herein contained, with the same force and effect as if no such termination,
expiration or cancellation had taken place. Tenant covenants to execute and
deliver any instrument required to confirm the validity of the foregoing.
Anything herein contained to the contrary notwithstanding, this lease shall
not
be deemed to be automatically reinstated as aforesaid, nor shall Tenant be
obligated to execute and deliver any instrument confirming such reinstatement,
if Tenant has delivered to the Mesne Lessor and any ground lessor so electing
a
notice that in Tenant's option this lease has so terminated, expired or been
canceled, and neither the Mesne Lessor nor such other ground lessor has,
within
thirty (30) days after receipt of such notice from Tenant, delivered notice
to
Tenant of its election automatically to reinstate this lease.
13.04
Tenant
hereby consents to any and all assignment of Landlord's interest in this
Lease
to any ground lessor or mortgagee as collateral security for the payment
of the
ground rent or monies due under any mortgage. Tenant agrees to attorn to
and pay
rent to any such ground lessor's or mortgagee in accordance with the provisions
of any such assignment.
13.05
Tenant
agrees that no act, or failure to act, on the part of Landlord, which would
entitle Tenant under the terms of this Lease, or by law to be relieved of
Tenant's obligations
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hereunder
or to terminate this lease, shall result in a release or termination of such
obligations or termination of this lease unless (i) Tenant shall have first
given written notice of Landlord's act or failure to act to the ground lessors
under all then existing ground leases of which Tenant has been given prior
written notice, to all then existing mortgagees who have requested such notice
from Tenant, and to Midland Loan Services, Inc., as mortgagee, at (i) 10851
Xxxxxx, Xxxxxxxx Xxxx, Xxxxxx 00000, Attn.: Xxxxxx Xxxxx, Vice
President/Portfolio Management, specifying the act or failure to act on the
part
of Landlord which could or would give basis to Tenant's rights and (ii) the
ground lessors and such mortgagees, after receipt of such notice, have failed
or
refused to correct or cure the condition complained of within a reasonable
time
thereafter but nothing herein contained shall be deemed to impose any obligation
on any ground lessor or such mortgagee to correct or cure any such
condition.
13.06
This
Lease may not be modified or amended so as to reduce the rent, shorten the
term,
or otherwise materially affect the rights of Landlord hereunder, or be canceled
or surrendered except as provided in Section 13.05 this Article without the
prior written consent in each instance of the ground lessors and of any
mortgagees whose mortgages shall require such consent. Any such modification,
agreement, cancellation or surrender made without such prior written consent
shall be null and void.
13.07
From
time to time, Tenant, on at least ten (10) days' prior written request by
Landlord, shall deliver to Landlord a statement in writing certifying that
this
Lease is unmodified and in full force and effect (or if there shall have
been
modifications, that the same is in full force and effect as modified and
stating
the modifications) and the dates to which the Rent and other charges have
been
paid and stating whether or not Landlord is in default in performance of
any
covenant, agreement or condition contained in this Lease and, if so, specifying
each such default. In the event that Tenant shall fail to execute and deliver
any such instrument within ten (10) days after written request is made therefor,
Landlord shall deliver an additional copy (marked “Second Notice”) thereof to
Tenant. In the event that Tenant, after the second notice, shall thereafter
fail
to either (i) execute and deliver any such instrument within ten (10) days
after
written request is made therefor or (ii) furnish within ten (10) days after
written request is made therefor, a bonafide written dispute of the contents
of
such instrument, containing proposed remediation language; thereafter failure
to
execute any revised subordination within ten (10) days of receipt of written
request is made therefor, then hereby irrevocably constitutes and appoints
Landlord as Tenant's attorney-in-fact to execute, acknowledge and deliver
any
such statements or certificates for and on behalf of Tenant.
ARTICLE
14
CONDEMNATION
14.01
If
the whole or any substantial part of the Premises shall be condemned by eminent
domain or acquired by private purchase in lieu thereof, for any public or
quasi-public purpose, this Lease shall terminate on the date of the vesting
of
title through such proceeding or purchase, and Tenant shall have no claim
against Landlord for the value of any unexpired portion of the Term of this
Lease, nor shall Tenant be entitled to any part of the condemnation award
or
private purchase price. If less than a substantial part of the Premises is
condemned, this Lease shall not terminate, but Rent shall xxxxx in proportion
to
the portion of the Premises condemned.
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ARTICLE
15
REQUIREMENTS
OF LAW
15.01
Tenant
at its expense shall comply with all laws, orders and regulations of any
governmental authority having or asserting jurisdiction over the Premises,
which
shall impose any violation, order or duty upon Landlord or Tenant as a result
of
Tenant’s particular manner of use or occupancy of the Premises, including,
without limitation, compliance in the Premises with all City, State and Federal
laws, rules and regulations on the disabled or handicapped, on fire safety
and
on hazardous materials. The foregoing shall not require Tenant to do structural
work to the Building. Notwithstanding the foregoing, Landlord shall be
responsible for the cost of curing any violation of law in the Premises,
existing as a matter of public record as of the commencement of the Term
of this
Lease or for which Landlord has had actual knowledge of as of the commencement
of the term of this Lease.
15.02
Tenant
shall require every person engaged by him to clean any window in the Premises
from the outside, to use the equipment and safety devices required by Section
202 of the Labor Law and the rules of any governmental authority having or
asserting jurisdiction.
15.03
Tenant
at its expense shall comply with all requirements of the New York Board of
Fire
Underwriters, or any other similar body affecting the Premises, and shall
not
use the Premises in a manner which shall increase the rate of fire insurance
of
Landlord or of any other tenant, over that in effect prior to this Lease.
If
Tenant's use of the Premises increases the fire insurance rate, Tenant shall
reimburse Landlord for all such increased costs. That the Premises are being
used for the purpose set forth in Article 1 hereof shall not relieve Tenant
from
the foregoing duties, obligations and expenses.
ARTICLE
16
CERTIFICATE
OF OCCUPANCY
16.01
Tenant
will at no time use or occupy the Premises in violation of the certificate
of
occupancy issued for the Building. The statement in this Lease of the nature
of
the business to be conducted by Tenant shall not be deemed to constitute
a
representation or guaranty by Landlord that such use is lawful or permissible
in
the Premises under the certificate of occupancy for the Building.
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ARTICLE
17
POSSESSION
17.01
If
Landlord shall be unable to give possession of the Premises on the Commencement
Date in the condition required by this Lease, because of the retention of
possession of any occupant thereof, alteration or construction work, or for
any
other reason, Landlord shall not be subject to any liability for such failure.
In such event, this Lease shall stay in full force and effect, without extension
of its Term. However, the Rent hereunder shall not commence until the Premises
are available for occupancy by Tenant in the condition required by this Lease,
as provided in Article 22 of the Lease. If delay in possession is due to
work,
changes or decorations being made by or for Tenant other than Landlord’s Work,
or is otherwise caused by Tenant, there shall be no rent abatement and the
Rent
shall commence on the date specified in this Lease. If permission is given
to
Tenant to occupy the Premises or other Premises prior to the date specified
as
the commencement of the Term, such occupancy shall be deemed to be pursuant
to
the terms of this Lease, except that the parties shall separately agree as
to
the obligation of Tenant to pay Rent for such occupancy. The provisions of
this
Article are intended to constitute an "express provision to the contrary"
within
the meaning of Section 223(a), New York Real Property Law.
ARTICLE
18
QUIET
ENJOYMENT
18.01
Landlord
covenants that if Tenant pays the Rent and performs all of Tenant's other
obligations under this Lease, Tenant may peaceably and quietly enjoy the
Premises, subject to the terms, covenants and conditions of this Lease and
to
the ground leases, underlying leases and mortgages hereinbefore
mentioned.
ARTICLE
19
RIGHT
OF ENTRY
19.01
Tenant
shall permit Landlord to erect, construct and maintain pipes, conduits and
shafts in and through the Premises provided that they are concealed, erected
along perimeter walls wherever possible and are installed in a manner which
does
not interfere with Tenant's use of the Premises. Landlord or its agents shall
have the right to enter or pass through the Premises upon reasonable oral
notice
to Tenant at reasonable times and by reasonable force in the event of an
Emergency Situation without notice to Tenant, by master key and, in the event
of
an emergency, by reasonable force or otherwise, to examine the same, and
to make
such repairs, alterations or additions as it may deem necessary or desirable
to
the Premises or the Building, and to take all material into and upon the
Premises that may be required therefor. Landlord shall use reasonable efforts
to
minimize interference with Tenant’s normal business activities within the
premises provided, however, that Tenant acknowledges and agrees that all
work
shall be performed on normal business days during normal business hours.
Notwithstanding the foregoing, in the event that Tenant requests that Landlord
make such repairs, alterations or additions during times other than ordinary
business hours, and such labor is then available, Tenant shall be responsible
for the cost of such overtime or premium labor charges as the case may be.
Such
entry and work shall not
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constitute
an eviction of Tenant in whole or in part, shall not be grounds for any
abatement of rent, and shall impose no liability on Landlord by reason of
inconvenience or injury to Tenant's business. Landlord shall have the right
at
any time, without the same constituting an actual or constructive eviction,
and
without incurring any liability to Tenant, to change the arrangement and/or
location of entrances or passageways, windows, corridors, elevators, stairs,
toilets, or other public parts of the Building, and to change the designation
of
rooms and suites and the name or number by which the Building is
known.
ARTICLE
20
INDEMNITY
20.01
Tenant
shall indemnify, defend and save Landlord harmless from and against any
liability or expense arising from the use or occupation of the Premises by
Tenant, or anyone on the Premises with Tenant's permission, or from any breach
of this Lease.
ARTICLE
21
LANDLORD'S
LIABILITY, ETC.
21.01
This
Lease and the obligations of Tenant hereunder shall not in any way be affected
because Landlord is unable to fulfill any of its obligations or to supply
any
service, by reason of strike or other cause not within Landlord's control.
Landlord shall have the right, without incurring any liability to Tenant,
to
stop any service because of accident or emergency, or for repairs, alterations
or improvements, necessary or desirable in the judgment of Landlord, until
such
repairs, alterations or improvements shall have been completed. Landlord
shall
not be liable to Tenant or anyone else, for any loss or damage to person,
property or business; nor shall Landlord be liable for any latent defect
in the
Premises or the Building. Neither
the partners, entities or individuals comprising the Landlord, nor the agents,
directors, or officers or employees of any of the foregoing shall be liable
for
the performance of the Landlord's obligations hereunder. Tenant
agrees to look solely to Landlord's estate and interest in the land and
Building, or the lease of the Building or of the land and Building, and the
Premises, for the satisfaction of any right or remedy of Tenant for the
collection of a judgement (or other judicial process) requiring the payment
of
money by Landlord, and in the event of any liability by Landlord, and no
other
property or assets of Landlord or of any of the aforementioned parties shall
be
subject to levy, execution or other enforcement procedure for the satisfaction
of Tenant's remedies under or with respect to this Lease, the relationship
of
Landlord and Tenant hereunder, or Tenant's use and occupancy of the Premises
or
any other liability of Landlord to Tenant.
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ARTICLE
22
CONDITION
OF PREMISES
22.01
The
parties acknowledge that Tenant has inspected the Premises and the Building
and
is fully familiar with the physical condition thereof and Tenant agrees to
accept the Premises at the commencement of the Term in its then “as is”
condition. Tenant acknowledges and agrees that Landlord shall have no obligation
to do any work in or to the Premises in order to make it suitable and ready
for
occupancy and use by Tenant, except to the extent expressly provided for
in this
Article 22.
22.02
Prior
to the commencement of the Term of this Lease, Landlord
shall, at Landlord’s cost and expense, perform the work set forth on the
schedule annexed hereto as Exhibit C in a building standard manner using
building standard materials (“Landlord’s
Work”).
Landlord, or Landlord’s designated, wholly owned affiliate Emerald City
Construction Corp., shall perform Landlord’s Work with reasonable dispatch,
subject to delay by causes beyond its control or by the action or inaction
of
Tenant. Tenant acknowledges and agrees that the performance of Landlord’s Work
is expressly conditioned upon compliance by Tenant with all the terms and
conditions of this Lease, including payment of Rent.
22.03
Any
changes in or additions to Landlord’s Work which shall be consented to by
Landlord, and further changes in or additions to the Premises requested by
Tenant after said Work has been completed which shall be so consented to
and
made by Landlord, or its agents, but shall be paid for by Tenant promptly
when
billed at cost plus 1 1/4% for insurance, 5% for overhead and 5% for general
conditions, and in the event of the failure of Tenant so to pay for said
changes
or additions, Landlord at its option may consider the cost thereof, plus
the
above percentages,
as Additional Rent payable by Tenant and collectible as such hereunder, as
part
of the rent for the next ensuing months.
22.04
If
Landlord's Work is not substantially completed by the Commencement Date and
is
delayed by acts, omissions or changes made or requested by Tenant, its agents,
designers, architects or any other party acting or apparently acting on Tenant’s
behalf, then Tenant shall pay as hereinbefore provided rent and additional
rent
on a per diem basis for each day of delay of Landlord's substantial completion
caused by Tenant or any of the aforementioned parties.
22.05
Landlord's
Work shall be deemed to be substantially completed notwithstanding that (i)
minor or non-material details of construction, mechanical adjustment or
decoration remain to be performed, provided that said "Punch List Items"
shall
be completed by Landlord within a reasonable time thereafter or (ii) a portion
of Landlord's Work is incomplete because construction scheduling requires
that
such work be done after incomplete finishing or after other work to be done
by
Tenant or Tenant’s agent, employee, servant or contractor is completed.
Notwithstanding anything contained herein to the contrary, Landlord and Tenant
acknowledge and agree that Landlord shall complete any Punch List items during
normal business on normal business days, in connection with which Landlord
acknowledges that Tenant may be conducting business in the Premises for the
uses
permitted under this Lease during such time(s). Accordingly, Landlord agrees
that Landlord shall use commercially reasonable efforts to minimize interference
with Tenant’s permitted use of the Premises and to compartmentalize the portion
of the Premises in which Landlord performs work on Punch List Items in order
to
minimize the escape of debris therefrom and Tenant shall reasonably cooperate
with Landlord by covering and/or temporarily relocating Tenant’s personnel,
furniture and/or office equipment within the Premises.
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Furthermore,
in
the event that Tenant requests that Landlord complete such Punch List Items
during times other than ordinary business hours, and such labor is then
available, Tenant shall be responsible for the cost of such overtime or premium
labor charges as the case may be. Such entry and work shall not constitute
an
eviction of Tenant in whole or in part, shall not be grounds for any abatement
of rent, and shall impose no liability on Landlord by reason of inconvenience
or
injury to Tenant's business.
ARTICLE
23
CLEANING
23.01
Landlord
shall cause the Premises to be kept clean in accordance with Landlord's
customary standards for the Building, provided they are kept in order by
Tenant.
Landlord, its cleaning contractor and their employees shall have after-hours
access to the Premises and the use of Tenant's light, power and water in
the
Premises as may be reasonably required for the purpose of cleaning the Premises.
Landlord may remove Tenant's extraordinary refuse from the Building and Tenant
shall pay the cost thereof.
23.02
Tenant
acknowledges that Landlord has designated a cleaning contractor for the
Building. Tenant agrees to employ said cleaning contractor or such other
contractor as Landlord shall from time to time designate (the “Building
Cleaning Contractor”)
to perform all cleaning services required under the Lease to be performed
by
Tenant within the Premises and for any other waxing, polishing, and other
cleaning and maintenance work of the Premises and Tenant's furniture, fixtures
and equipment (collectively, “Tenant
Cleaning Services”)
provided that the prices charged by said contractor are comparable to the
prices
customarily charged by other reputable cleaning contractors employing union
labor in midtown Manhattan for the same level and quality of service. Tenant
acknowledges that it has been advised that the cleaning contractor for the
Building may be a division or affiliate of Landlord. Tenant agrees that it
shall
not employ any other cleaning and maintenance contractor, nor any individual,
firm or organization for such purpose, without Landlord's prior written consent.
In the event that Landlord and Tenant cannot agree on whether the prices
then
being charged by the Building Cleaning Contractor for such cleaning services
are
comparable to those charged by other reputable contractors as herein provided,
then Landlord and Tenant shall each obtain two (2) bona fide bids for such
services from reputable cleaning contractors performing such services in
comparable buildings in midtown Manhattan
employing union labor, and the average of the four bids thus obtained shall
be
the standard of comparison. In the event that the Building Cleaning Contractor
does not agree to perform such cleaning services for Tenant at such average
price, Landlord shall not unreasonably withhold its consent to the performance
of Tenant Cleaning Services by a reputable cleaning contractor designated
by
Tenant employing union labor with the proper jurisdictional qualifications
provided, however, that, without limitation, Landlord's experience with such
contractor or any criminal proceedings pending or previously filed against
such
contractor may form a basis upon which Landlord may withhold or withdraw
its
consent.
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ARTICLE
24
JURY
WAIVER
24.01
Landlord
and Tenant hereby waive trial by jury in any action, proceeding or counterclaim
involving any matter whatsoever arising out of or in any way connected with
this
Lease, the relationship of Landlord and Tenant, Tenant's use or occupancy
of the
Premises or involving the right to any statutory relief or remedy. Tenant
will
not interpose any counterclaim of any nature in any summary proceeding except
for mandatory or compulsory counterclaims.
ARTICLE
25
NO
WAIVER, ETC.
25.01
No
act or omission of Landlord or its agents shall constitute an actual or
constructive eviction, unless Landlord shall have first received written
notice
of Tenant's claim and shall have had a reasonable opportunity to meet such
claim. In the event that any payment herein provided for by Tenant to Landlord
shall become overdue for a period in excess of ten (10) days, then at Landlord's
option a "late charge" shall become due and payable to Landlord, as Additional
Rent, from the date it was due until payment is made, at the following rates:
for individual and partnership lessees, said late charge shall be computed
at
the maximum legal rate of interest; for corporate or governmental entity
lessees
the late charge shall be computed at two percent per month unless there is
an
applicable maximum legal rate of interest which then shall be used. No act
or
omission of Landlord or its agents shall constitute an acceptance of a surrender
of the Premises, except a writing signed by Landlord. The delivery or acceptance
of keys to Landlord or its agents shall not constitute a termination of this
Lease or a surrender of the Premises. Acceptance by Landlord of less than
the
Rent herein provided shall at Landlord's option be deemed on account of earliest
Rent remaining unpaid. No endorsement on any check, or letter accompanying
Rent,
shall be deemed an accord and satisfaction, and such check may be cashed
without
prejudice to Landlord. No waiver of any provision of this Lease shall be
effective, unless such waiver be in writing signed by the party to be charged.
In no event shall Tenant be entitled to make, nor shall Tenant make any claim,
and Tenant hereby waives any claim for money damages (nor shall Tenant claim
any
money damages by way of set-off, counterclaim or defense) based upon any
claim
or assertion by Tenant that Landlord had unreasonably withheld, delayed or
conditioned its consent or approval to any request by Tenant made under a
provision of this Lease. Tenant's sole remedy shall be an action or proceeding
to enforce any such provision, or for specific performance or declaratory
judgment. Tenant shall comply with the rules and regulations contained in
this
Lease, and any reasonable modifications thereof or additions thereto. Landlord
shall not be liable to Tenant for the violation of such rules and regulations
by
any other tenant. Failure of Landlord to enforce any provision of this Lease,
or
any rule or regulation, shall not be construed as the waiver of any subsequent
violation of a provision of this Lease, or any rule or regulation. Landlord
agrees to enforce all Rules and Regulations in a uniform and non-discriminatory
manner. This Lease shall not be affected by nor shall Landlord in any way
be
liable for the closing, darkening or bricking up of windows in the Premises,
for
any reason, including as
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the
result of construction on any property of which the Premises are not a part
or
by Landlord's own acts.
ARTICLE
26
OCCUPANCY
AND USE BY TENANT
26.01
If
this Lease is terminated because of Tenant’s default hereunder, then, in
addition to Landlord's rights of re-entry, restoration, preparation for and
rerental, and anything elsewhere in this Lease to the contrary notwithstanding,
all Rent and Additional Rent reserved in this Lease from the date of such
breach
to the expiration date of this Lease shall become immediately due and payable
to
Landlord and Landlord shall retain its right to judgment on and collection
of
Tenant's aforesaid obligation to make a single payment to Landlord of a sum
equal to (i) the amount by which (x) the Fixed Annual Rent and Additional
Rent
payable hereunder for the period to the Expiration Date from the date of
such
breach, exceeds (y) the then fair and reasonable rental value of the Premises
for the same period, both discounted at the prime rate of interest charged
by
Chase Manhattan Bank, New York, (or the successor thereto) on the date of
such
breach to present worth, and (ii) all reasonable out-of-pocket expenses of
Landlord in obtaining possession of, and in effecting the reletting of the
Premises including, without limitation, alteration costs, commissions,
concessions and legal fees. In no event shall Tenant be entitled to a credit
or
repayment for rerental income which exceeds the sums payable by Tenant hereunder
or which covers a period after the original Term of this Lease.
ARTICLE
27
NOTICES
27.01
Any
xxxx from Landlord to Tenant, may be delivered personally at the Premises
or
sent by regular mail or by any nationally recognized overnight delivery service
and addressed to Tenant at the Premises or if prior to the commencement of
the
Term of this Lease at the address first set forth herein. Any notice or demand
from Landlord to Tenant, shall be delivered personally at the Premises with
a
copy sent by registered or certified mail or by any nationally recognized
overnight delivery service and addressed to Tenant at the Premises or if
prior
to the commencement of the Term of this Lease to the address first set forth
herein. Such xxxx, notice or demand shall be deemed to have been given at
the
time of delivery, mailing or receipt by such delivery service. Any notice,
request or demand from Tenant to Landlord must be sent by registered or
certified mail or by any nationally recognized overnight courier service
to the
last address designated in writing by Landlord.
ARTICLE
28
WATER
28.01
Tenant
shall pay the amount of Landlord's cost for all excessive water used by Tenant
for any purpose other than ordinary cleaning, pantry or lavatory uses, and
any
sewer
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rent
or tax based thereon. In the event Landlord has reason to believe that Tenant’s
use of water in the Premises is excessive, Landlord may install a water meter
to
measure Tenant's water consumption for all purposes and Tenant agrees to
pay for
the installation and maintenance thereof and for water consumed as shown
on said
meter at Landlord’s cost therefor plus fifteen (15%) percent. If water is made
available to Tenant in the Building or the Premises through a meter which
also
supplies other Premises, or without a meter, then Tenant shall pay to Landlord
a
reasonable charge per month for water. Landlord reserves the right to
discontinue water service to the Premises if either the quantity or character
of
such service is changed or is no longer available or suitable for Tenant’s
requirements or for any other reason without releasing Tenant from any liability
under this Lease and without Landlord or Landlord’s agent incurring any
liability for any damage or loss sustained by Tenant by such discontinuance
of
service.
ARTICLE
29
SPRINKLER
SYSTEM
29.01
If
there shall be a "sprinkler system" in the Premises for any period during
this
Lease, Tenant shall pay a reasonable charge per month, for sprinkler supervisory
service. In no event shall Tenant’s Share exceed the sum of twenty five ($.25)
cents per rentable square foot of space per calendar year during the term
of
this Lease. If such sprinkler system is damaged by any act or omission of
Tenant
or its agents, employees, licensees or visitors, Tenant shall restore the
system
to good working condition at its own expense. If the New York Board of Fire
Underwriters, the New York Fire Insurance Exchange, the Insurance Services
Office, or any governmental authority requires the installation of, or any
alteration to a sprinkler system by reason of Tenant's particular manner
of
occupancy or use of the Premises, including any alteration necessary to obtain
the full allowance for a sprinkler system in the fire insurance rate of
Landlord, or for any other reason, Tenant shall make such installation or
alteration promptly, and at its own expense.
ARTICLE
30
HEAT,
ELEVATOR, ETC.
30.01
Landlord
shall provide a minimum of one passenger elevator servicing the floor upon
which
the premises are located twenty-four (24) hours a day, seven days a week.
Landlord shall furnish heat to the Premises during days in the cold season
in
each year during usual business hours including Saturdays until 1 P.M., except
on Sundays, State holidays, Federal holidays, or Building Service Employees
Union Contract holidays. If the elevators in the Building are manually operated,
Landlord may convert to automatic elevators at any time, without in any way
affecting Tenant's obligations hereunder.
30.02
Tenant shall not be charged for Tenant’s use of one (1) car for freight elevator
service solely in connection with its initial, single phase move into the
Premises, provided that (i)
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same
does not exceed eight (8) hours in the aggregate; and (ii) Tenant acknowledges
and agrees that such use shall be on a non-exclusive, first-come, first-served
basis.
ARTICLE
31
SECURITY
DEPOSIT
31.01
Tenant
has deposited with Landlord the sum of $35,824.75 as security (the “Security”)
for the performance by Tenant of the terms of this Lease after notice and
the
expiration of any applicable cure period. Landlord may use any part of the
Security to satisfy any default of Tenant and any expenses arising from such
default, including but not limited to legal fees and any damages or rent
deficiency before or after re-entry by Landlord. Tenant shall, upon demand,
deposit with Landlord the full amount so used, and/or any amount not so
deposited by Tenant, in order that Landlord shall have the full Security
deposit
on hand at all times during the term of this Lease. If Tenant shall comply
fully
with the terms of this Lease, the Security shall be returned to Tenant after
the
date fixed as the end of the Lease. In the event of a sale or lease of the
Building containing the Premises, Landlord may transfer the Security to the
purchaser or tenant, and Landlord shall thereupon be released from all liability
for the return of the Security. This provision shall apply to every transfer
or
assignment of the Security to a new Landlord. Tenant shall have no legal
power
to assign or encumber the Security herein described.
31.02
Provided
that on the last day of the 36th calendar month following the commencement
of
the Term of this Lease, (i) Tenant is not in default of any of the material
terms, covenants and conditions of this Lease after notice, and (ii) the
tenant
named on the first page of this Lease occupies all of the Premises, and (iii)
the amount of the security deposit which has been deposited by Tenant with
Landlord pursuant to this Article of this Lease has not been drawn upon by
Landlord or, in the event it has so been drawn upon by Landlord, the security
deposit has been replenished to its original amount by Tenant, then said
security deposit shall be reduced by the sum of $17,912.37 (the “Security
Reduction”). Tenant hereby authorizes Landlord to apply the Security Reduction
to the monthly installments of fixed annual rent due for the thirty-seventh
(37th),
thirty-eighth (38th) and the thirty-ninth (39th) months after the commencement
of the term of this Lease, notwithstanding the foregoing however, Tenant
shall
be responsible for all rents and additional rents which may be due pursuant
to
the Lease which are not satisfied by Landlord’s application of the Security
Reduction.
31.03
The
security shall be maintained by Landlord in an interest bearing account and
Landlord shall remit to Tenant all interest earned at the time the security
is
returned to Tenant, minus a one (1%) percent administration fee to which
Landlord shall be entitled.
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ARTICLE
32
TAX
ESCALATION
32.01
Tenant
shall pay to Landlord, as Additional Rent, tax escalation in accordance with
this Article:
(a)
For
purposes of this Lease, Landlord and Tenant acknowledge and agree that the
rentable square foot area of the Premises shall be deemed to be 1,963 square
feet.
(b)
For
the purpose of this Article, the following definitions shall apply:
(i)
The term "Tenant’s
Share",
for purposes of computing tax escalation, shall mean one hundred seventy
six
thousandths percent (0.176%). Tenant’s Share has been computed on the basis of a
fraction, the numerator of which is the rentable square foot area of the
Premises and the denominator of which is the total rentable square foot area
of
the office and commercial space in the Building Project. The parties acknowledge
and agree that the total rentable square foot area of the office and commercial
space in the Building Project shall be deemed to be 1,112,424 sq.
ft.
(ii)
The term the “Building
Project"
shall mean the aggregate combined parcel of land on a portion of which are
the
improvements of which the Premises form a part, with all the improvements
thereon, said improvements being a part of the block and lot for tax purposes
which are applicable to the aforesaid land.
(iii)
The
phrase “Real Estate Taxes Payable during the Base Tax Year” shall be
deemed to be the New York City Real Estate Fiscal Year commencing on July
1,
2004 through June 30, 2005.
(iv)
The term “Comparative
Year”
shall mean the twelve (12) month period beginning on July 1, 2005 and ending
on
June 30, 2006, and each subsequent period of twelve (12) months
thereafter.
(v)
The term "Real
Estate Taxes"
shall mean the total of all real estate taxes and special or other assessments
levied, assessed or imposed at any time by any governmental authority upon
or
against the Building Project including, without limitation, any tax or
assessment levied, assessed or imposed at any time by any governmental authority
in connection with the receipt of income or rents from said Building Project
to
the extent that same shall be in lieu of all or a portion of any of the
aforesaid taxes or assessments, or additions or increases thereof, upon or
against said Building Project. The Lease shall exclude from Real Estate Taxes
any interest or penalties incurred by Landlord by reason of late payment
of
Taxes. If, due to a future change in the method of taxation or in the taxing
authority, or for any other reason, a franchise, income, transit, profit
or
other tax or governmental imposition, however designated, shall be levied
against Landlord in substitution in whole or in part for the Real Estate
Taxes,
or in lieu of additions to or increases of said Real Estate Taxes, then such
franchise, income, transit, profit or other tax or governmental imposition
shall
be deemed to be included within the definition of "Real Estate Taxes" for
the
purposes hereof. As to special assessments which are payable over a period
of
time extending beyond the term of this Lease, for purposes of this Article
such
special assessments shall be calculated assuming that Landlord shall pay
such
assessments over the longest period of time allowable.
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(vi)
Where more than one assessment is imposed by the City of New York for any
tax
year, whether denominated an "actual assessment" or a "transitional assessment"
or otherwise, then the phrases herein "assessed value" and "assessments"
shall
mean whichever of the actual, transitional or other assessment is designated
by
the City of New York as the taxable assessment for that tax year.
32.02
In
the event that the Real Estate Taxes payable for any Comparative Year shall
exceed the amount of the Real Estate Taxes payable during the Base Tax Year,
Tenant shall pay to Landlord, as Additional Rent for such Comparative Year,
an
amount equal to Tenant’s Share of the excess. Before or after the start of each
Comparative Year, Landlord shall furnish to Tenant a statement of the Real
Estate Taxes payable during the Comparative Year. If the Real Estate Taxes
payable for such Comparative Year exceed the Real Estate Taxes payable during
the Base Tax Year, Additional Rent for such Comparative Year, in an amount
equal
to Tenant’s Share of the excess, shall be due from Tenant to Landlord, and such
Additional Rent shall be payable by Tenant to Landlord within thirty (30)
days
after receipt of the aforesaid statement. The benefit of any discount for
any
early payment or prepayment of Real Estate Taxes shall accrue solely to the
benefit of Landlord, and such discount shall not be subtracted from the Real
Estate Taxes payable for any Comparative Year. In addition to the foregoing,
Tenant shall pay to Landlord, on demand, as Additional Rent, a sum equal
to
Tenant's Share of any business improvement district assessment payable by
the
Building Project.
32.03
Should
the Real Estate Taxes payable during the Base Tax Year be reduced by final
determination of legal proceedings, settlement or otherwise, then, the Real
Estate Taxes payable during the Base Tax Year shall be correspondingly revised,
the Additional Rent theretofore paid or payable hereunder for all Comparative
Years shall be recomputed on the basis of such reduction, and Tenant shall
pay
to Landlord as Additional Rent, within ten (10) days after being billed
therefor, any deficiency between the amount of such Additional Rent as
theretofore computed and the amount thereof due as the result of such
recomputations.
32.04
If,
after Tenant shall have made a payment of Additional Rent under Section 32.02,
Landlord shall receive a refund of any portion of the Real Estate Taxes payable
for any Comparative Year after the Base Tax Year July 1, 2004 through June
30,
2005 on which such payment of Additional Rent shall have been based, as a
result
of a reduction of such Real Estate Taxes by final determination of legal
proceedings, settlement or otherwise, Landlord shall within ten (10) days
after
receiving the refund pay to Tenant Tenant’s Share of the refund less Tenant’s
Share of expenses (including attorneys' and appraisers' fees) incurred by
Landlord in connection with any such application or proceeding. In addition
to
the foregoing, Tenant shall pay to Landlord, as Additional Rent, within ten
(10)
days after Landlord shall have delivered to Tenant a statement therefore,
Tenant’s Share of all expenses incurred by Landlord in reviewing or contesting
the validity or amount of any Real Estate Taxes or for the purpose of obtaining
reductions in the assessed valuation of the Building Project prior to the
billing of Real Estate Taxes, including without limitation, the fees and
disbursements of attorneys, third party consultants, experts and
others.
32.05
The
statements of the Real Estate Taxes to be furnished by Landlord as provided
above shall be certified by Landlord and shall constitute a final determination
as between
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Landlord
and Tenant of the Real Estate Taxes for the periods represented thereby,
unless
Tenant within thirty (30) days after they are furnished shall give a written
notice to Landlord that it disputes their accuracy or their appropriateness,
which notice shall specify the particular respects in which the statement
is
inaccurate or inappropriate. If Tenant shall so dispute said statement then,
pending the resolution of such dispute, Tenant shall pay the Additional Rent
to
Landlord in accordance with the statement furnished by Landlord.
32.06
In
no event shall the Fixed Annual Rent under this Lease be reduced by virtue
of
this Article.
32.07
If
the Commencement Date of the Term of this Lease is not the first day of the
first Comparative Year, then the Additional Rent due hereunder for such first
Comparative Year shall be a proportionate share of said Additional Rent for
the
entire Comparative Year, said proportionate share to be based upon the length
of
time that the lease Term will be in existence during such first Comparative
Year. Upon the date of any expiration or termination of this Lease (except
termination because of Tenant's default) whether the same be the date
hereinabove set forth for the expiration of the Term or any prior or subsequent
date, a proportionate share of said Additional Rent for the Comparative Year
during which such expiration or termination occurs shall immediately become
due
and payable by Tenant to Landlord, if it was not theretofore already billed
and
paid. The said proportionate share shall be based upon the length of time
that
this Lease shall have been in existence during such Comparative Year. Landlord
shall promptly cause statements of said Additional Rent for that Comparative
Year to be prepared and furnished to Tenant. Landlord and Tenant shall thereupon
make appropriate adjustments of amounts then owing.
32.08
Landlord's
and Tenant's obligations to make the adjustments referred to in Section 32.07
above shall survive any expiration or termination of this Lease. Any delay
or
failure of Landlord in billing any tax escalation hereinabove provided shall
not
constitute a waiver of or in any way impair the continuing obligation of
Tenant
to pay such tax escalation hereunder.
ARTICLE
33
RENT
CONTROL
33.01
In
the event the Fixed Annual Rent or Additional Rent or any part thereof provided
to be paid by Tenant under the provisions of this Lease during the Term shall
become uncollectible or shall be reduced or required to be reduced or refunded
by virtue of any Federal, State, County or City law, order or regulation,
or by
any direction of a public officer or body pursuant to law, or the orders,
rules,
code or regulations of any organization or entity formed pursuant to law,
whether such organization or entity be public or private, then Landlord,
at its
option, may at any time thereafter terminate this Lease, by not less than
thirty
(30) days' written notice to Tenant, on a date set forth in said notice,
in
which event this Lease and the term hereof shall terminate and come to an
end on
the date fixed in said notice as if the said date were the date originally
fixed
herein for the termination of the demised term. Landlord shall not have the
right to so terminate this Lease if Tenant within such period of thirty (30)
days shall in writing lawfully
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agree
that the rentals herein reserved are a reasonable rental and agree to continue
to pay said rentals, and if such agreement by Tenant shall then be legally
enforceable by Landlord.
ARTICLE
34
SUPPLIES
34.01
Only
Landlord or any one or more persons, firms, or corporations authorized in
writing by Landlord, which authorization shall not be unreasonably withheld,
conditioned or delayed, shall be permitted to furnish laundry, linens, towels,
drinking water, water coolers, ice and other similar supplies and services
to
tenants and licensees in the Building. Landlord may fix, in its own reasonable
discretion, from time to time, the hours during which and the regulations
under
which such supplies and services are to be furnished. Landlord furthermore
expressly reserves the right to reasonably exclude from the Building any
person,
firm or corporation attempting to furnish any of said supplies or services
but
not so authorized by Landlord.
34.02
Only
Landlord or any one or more persons, firms or corporations authorized in
writing
by Landlord, which authorization shall not be unreasonably withheld, conditioned
or delayed, shall be permitted to sell, deliver or furnish any food or beverages
whatsoever for consumption within the Premises or elsewhere in the Building.
Landlord further expressly reserves the right to reasonably exclude from
the
Building any person, firm or corporation attempting to deliver or purvey
any
such food or beverages, but not so authorized by Landlord. It is understood,
however, that Tenant or its regular office employees may personally bring
food
or beverages into the Building for consumption within the Premises by the
said
employees, but not for resale or for consumption by any other tenant. Landlord
may fix in its reasonable discretion from time to time the hours during which,
and the regulations under which, food and beverages may be brought into the
Building by Tenant or its regular employees.
ARTICLE
35
AIR
CONDITIONING
35.01
Tenant
shall be permitted to use the equipment presently supplying air-conditioning
service to the Premises (the “Existing
HVAC Equipment”)
Monday to Friday from 8:00 a.m. to 6:00 p.m. during the Building’s “Cooling
Season”
(which is currently May 15 through October 15) subject to and in accordance
with
the provisions of this Article. Tenant acknowledges and agrees that
air-conditioning service to the Premises shall be supplied through equipment
operated, maintained and repaired by Tenant and that Landlord has no obligation
to operate, maintain or to repair the said equipment or to supply
air-conditioning service to the Premises. The Existing HVAC Equipment and
all
other air conditioning systems, equipment and facilities hereafter located
in or
servicing the Premises (the “Supplemental
Systems”)
including, without limitation, the ducts, dampers, registers, grilles and
appurtenances utilized in connection with both the Existing HVAC Equipment
and
the Supplemental Systems (collectively hereinafter referred to as the
“HVAC
System”),
shall be
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maintained,
repaired and operated by Tenant in compliance with all present and future
laws
and regulations relating thereto at Tenant’s sole cost and expense. Tenant shall
pay for all electricity consumed in the operation of the HVAC System, and
Tenant's proportionate share of the electric current (and/or water, gas and
steam) for the production of chilled and/or condenser water and its supply
to
the Premises, if applicable, which shall become the obligation of Tenant
subject
to the terms of Article 41 of this Lease. Tenant shall pay for all parts
and
supplies necessary for the proper operation of the HVAC System (and any
restoration or replacement by Tenant of all or any part thereof shall be
in
quality and class at least equal to the original work or installations);
provided, however, that Tenant shall not alter, modify, remove or replace
the
HVAC System, or any part thereof, without Landlord’s prior written
consent.
35.02
Without
limiting the generality of the foregoing, Tenant shall, at its own cost and
expense, (a) cause to be performed all maintenance of the HVAC System, including
all repairs and replacements thereto, and (b) commencing as of the date upon
which Tenant shall first occupy the Premises for the conduct of its business,
and thereafter throughout the Term of the Lease, maintain in force and provide
a
copy of same to Landlord an air conditioning service repair and full service
maintenance contract covering the HVAC System in form satisfactory to Landlord
with an air conditioning contractor or servicing organization approved by
Landlord. All such contracts shall provide for the thorough overhauling of
the
HVAC System at least once each year during the Term of this Lease and shall
expressly state that (i) it shall be an automatically renewing contract
terminable upon not less than thirty (30) days prior written notice to the
Landlord (sent by certified mail, return receipt requested) and (ii) the
contractor providing such service shall maintain a log at the Premises detailing
the service provided during each visit pursuant to such contract. Tenant
shall
keep such log at the Premises and permit Landlord to review same promptly
after
Landlord's request. The HVAC System is and shall at all times remain the
property of Landlord, and at the expiration or sooner termination of the
Lease,
Tenant shall surrender to Landlord the HVAC System in good working order
and
condition, subject to normal wear and tear and shall deliver to Landlord
a copy
of the service log. In the event that Tenant fails to obtain the contract
required herein or perform any of the maintenance or repairs required hereunder,
Landlord shall have the right, but not the obligation, to procure such contract
and/or perform any such work and charge the Tenant as Additional Rent hereunder
the cost of same plus an administrative fee equal to fifteen percent (15%)
of
such cost which shall be paid for by Tenant on demand.
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ARTICLE
36
SHORING
36.01
Tenant
shall permit any person authorized to make an excavation on land adjacent
to the
Building containing the Premises to do any work within the Premises necessary
to
preserve the wall of the Building from injury or damage, and Tenant shall
have
no claim against Landlord for damages or abatement of rent by reason
thereof.
ARTICLE
37
EFFECT
OF CONVEYANCE, ETC.
37.01
If
the Building containing the Premises shall be sold, transferred or leased,
or
the lease thereof transferred or sold, Landlord shall be relieved of all
future
obligations and liabilities hereunder and the purchaser, transferee or tenant
of
the Building shall be deemed to have assumed and agreed to perform all such
obligations and liabilities of Landlord hereunder. In the event of such sale,
transfer or lease, Landlord shall also be relieved of all existing obligations
and liabilities hereunder, provided that the purchaser, transferee or tenant
of
the Building assumes in writing such obligations and liabilities.
ARTICLE
38
RIGHTS
OF SUCCESSORS AND ASSIGNS
38.01
This
Lease shall bind and inure to the benefit of the heirs, executors,
administrators, successors, and, except as otherwise provided herein, the
assigns of the parties hereto. If any provision of any Article of this Lease
or
the application thereof to any person or circumstances shall, to any extent,
be
invalid or unenforceable, the remainder of that Article, or the application
of
such provision to persons or circumstances other than those as to which it
is
held invalid or unenforceable, shall not be affected thereby, and each provision
of said Article and of this Lease shall be valid and be enforced to the fullest
extent permitted by law.
ARTICLE
39
CAPTIONS
39.01
The
captions herein are inserted only for convenience, and are in no way to be
construed as a part of this Lease or as a limitation of the scope of any
provision of this Lease.
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ARTICLE
40
BROKERS
40.01
Tenant
covenants, represents and warrants that Tenant has had no dealings or
negotiations with any broker or agent in connection with the consummation
of
this Lease other than XX Xxxxx Leasing LLC (collectively, the "Brokers")
and Tenant covenants and agrees to defend, hold harmless and indemnify Landlord
from and against any and all cost, expense (including reasonable attorneys'
fees) or liability for any compensation, commissions or charges claimed by
any
broker or agent with respect to this Lease or the negotiation thereof. Landlord
represents that Landlord, at its sole cost and expense, shall pay all
commissions due to the Brokers pursuant to a separate written agreement.
40.02
Landlord
represents and warrants to Tenant that it did not consult or negotiate with
any
broker, finder, or consultant with regard to the Premises other than the
Brokers, and that no other broker, finder or consultant participated in
procuring this Lease. Landlord hereby indemnifies and agrees to defend and
hold
Tenant, its agents, servants and employees harmless from any suit, action,
proceeding, controversy, claim or demand whatsoever at law or in equity that
may
be instituted against Tenant by those who dealt with Landlord for recovery
of
compensation or damages for procuring this Lease or by reason of a breach
or
purported breach of the representations and warranties contained herein.
ARTICLE
41
ELECTRICITY
41.01
Tenant
acknowledges and agrees that electric service shall be supplied to the Premises
on a “rent inclusion basis” in accordance with the provisions of this Article 41
(subject to Landlord’s right, in its sole discretion, to furnish such
electricity on a “submetering” basis as provided for herein).
41.02
Electricity
and electric service, as used herein, shall mean any element affecting the
generation, transmission, and/or distribution or redistribution of electricity,
including but not limited to services which facilitate the distribution of
service.
41.03
If
and so long as Landlord provides electricity to the Premises on a rent inclusion
basis, Tenant agrees that the Fixed Annual Rent shall be increased by the
amount
of the Electricity Rent Inclusion Factor (“ERIF”),
as hereinafter defined. Tenant acknowledges and agrees (i) that the Fixed
Annual
Rent hereinabove set forth in this Lease does not yet, but is to include
an ERIF
of $3.00 per rentable square foot to compensate Landlord for electrical wiring
and other installations necessary for, and for its obtaining and making
available to Tenant the redistribution of electric current as an additional
service, and Tenant shall pay for Tenant’s Share of Building electric current
(i.e., all electricity used in lighting the public and service areas, and
in
operating all the service facilities, of the Building and the parties
acknowledge and agree that
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twenty
percent (20%) of the Building's payment to the public utility or other service
providers for the purchase of electricity shall be deemed to be payment for
Building electric current, however, in no event shall Tenant’s charge exceed the
sum of twenty five ($.25) cents per rentable square foot of space per calendar
year during the term of this Lease ) which shall be paid for by Tenant in
accordance with provisions hereof; and (ii) that said ERIF, which shall be
subject to periodic adjustments as hereinafter provided, has been partially
based upon an estimate of the Tenant’s connected electrical load, in whatever
manner delivered to Tenant, which shall be deemed to be the demand (KW),
and
hours of use thereof, which shall be deemed to be the energy (KWH), for ordinary
lighting and light office equipment and the operation of the usual small
business machines, including Xerox or other copying machines (such lighting
and
equipment are hereinafter called “Ordinary
Equipment”)
during ordinary business hours (“Ordinary
Business Hours”
shall be deemed to mean 50 hours per week), with Landlord providing an average
connected load of 4 ½ xxxxx of electricity for all purposes per rentable square
foot. Any installation and use of equipment other than Ordinary Equipment
and/or
any connected load and/or energy usage by Tenant in excess of the foregoing
and
the charge for Tenant’s Share of Building electric current shall result in
adjustment of the ERIF as hereinafter provided. For purposes of this Article,
the rentable square foot area of the Premises shall be deemed to be 1,963
square
feet.
41.04
If
the cost to Landlord of electricity shall have been, or shall be, increased
subsequent to September 1, 2004 (whether such change occurs prior to or during
the term of this Lease), by change in Landlord’s electric rates or service
classifications, or electricity charges, including changes in market prices,
or
by an increase, subsequent to the last such electric rate or service
classification change or market price change, in fuel adjustments or charges
of
any kind, or by taxes, imposed on Landlord’s electricity purchases or on
Landlord’s electricity redistribution, or for any other such reason, then the
aforesaid ERIF portion of the fixed annual rent shall be changed in the same
percentage as any such change in cost due to changes in electric rates, service
classifications or market prices, and, also Tenant’s payment obligation, for
electricity redistribution, shall change from time to time so as to reflect
any
such increase in fuel adjustments or charges, and such taxes. Any such
percentage change in Landlord’s cost due to change in Landlord’s electric rate
or service classifications or market prices, shall be computed on the basis
of
the average consumption of electricity for the Building for the twelve full
months immediately prior to the rate change or other such changes in cost,
energy and demand, and any changed methods of or rules on billing for same,
applied on a consistent basis to the new electric rate or service classification
or market price and to the immediately prior existing electric rate or service
classification or market price. If the average consumption (energy and demand)
for the entire Building for said prior (12) months cannot reasonably be applied
and used with respect to changed methods of or rules on billing, then the
percentage increase shall be computed by the use of the average consumption
(energy and demand) for the entire building for the first three (3) months
after
such change, projected to a full twelve (12) months, so as to reflect the
different seasons; and that same consumption, so projected, shall be applied
to
the rate and/or service classification or market price which existed immediately
prior to the change. The parties agree that a reputable, independent electrical
consultant firm, selected by Landlord, (“Landlord’s
Electrical Consultant”),
shall determine the percentage change for the changes in ERIF due to Landlord’s
changed costs and the charge to Tenant for Tenant’s Share of Building electric
current, and that Landlord’s Electrical Consultant may from time to time make
surveys in the Premises of the electrical equipment and fixtures and use
of
current. (i) If such survey shall reflect a connected electrical
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load
in excess of 4 ½ xxxxx of electricity for all purposes per rentable square foot
and/or energy usage in excess of Ordinary Business Hours (each such excess
hereinafter called “excess
electricity”)
then the connected electrical load and/or the hours of use portion(s) of
the
then existing ERIF shall be increased by an amount which is equal to a fraction
of the then existing ERIF, the numerator of which is the excess electricity
(i.e. excess connected load and/or excess usage) and the denominator of which
is
the connected load and/or the energy usage which was the basis of the then
existing ERIF. Such fractions shall be determined by Landlord’s Electrical
Consultant. The Fixed Annual Rent shall then be appropriately adjusted,
effective as of the date of any such change in connected load and/or usage,
as
disclosed by said survey. (ii) If such survey shall disclose installation
and
use of other than Ordinary Equipment, then effective as of the date of said
survey, there shall be added to the ERIF portion of Fixed Annual Rent (computed
and fixed as hereinbefore described) an additional amount equal to what would
be
paid under the SC-4 Rate I Service Classification in effect on September
1, 2004
(and not the time-of-day rate schedule) or the comparable rate schedule (and
not
the time-of-day rate schedule) of any utility other than Con Ed then providing
electrical service to the building as same shall be in effect on the date
of
such survey for such load and usage of electricity, with the connected
electrical load deemed to be the demand (KW) and the hours of use thereof
deemed
to be the energy (KWH), as hereinbefore provided, (which addition to the
ERIF
shall be increased by all electricity cost changes of Landlord, as hereinabove
provided, from September 1, 2004 through the date of billing).
41.05
In
no event, whether because of surveys, rates or cost changes, or for any reason,
is the originally specified $3.00 per rentable square foot ERIF portion of
the
fixed annual rent (plus any net increase thereof by virtue of all electricity
rate, service classification or market price changes of Landlord subsequent
to
September 1, 2004) to be reduced.
41.06
The
determinations by Landlord’s Electrical Consultant shall be binding and
conclusive on Landlord and Tenant from and after the delivery of copies of
such
determinations to Landlord and Tenant, unless, within fifteen (15) days after
delivery thereof, Tenant disputes such determination. If Tenant so disputes
the
determination, it shall, at its own expense, obtain from a reputable,
independent electrical consultant its own determinations in accordance with
the
provisions of this Article. Tenant’s consultant and Landlord’s consultant then
shall seek to agree. If they cannot agree within thirty (30) days they shall
choose a third reputable electrical consultant, whose cost shall be shared
equally by the parties, to make similar determinations which shall be
controlling. (If they cannot agree on such third consultant within ten (10)
days, than either party may apply to the Supreme Court in the County of New
York
for such appointment.) However, pending such controlling determinations Tenant
shall pay to Landlord the amount of Additional Rent or ERIF in accordance
with
the determinations of Landlord’s Electrical Consultant. If the controlling
determinations differ from Landlord’s Electrical Consultant, then the parties
shall promptly make adjustment for any deficiency owed by Tenant or overage
paid
by Tenant.
41.07
If
and so long as Landlord provides electricity to the Premises on a submetering
basis, Tenant covenants and agrees to purchase the same from Landlord or
Landlord’s designated agent at charges, terms and rates set, from time to time,
during the term of this Lease by Landlord but not more than those specified
in
the service classification in effect on January 1, 1970 pursuant to which
Landlord then purchased electric current from the public utility
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corporation
serving the part of the city where the Building is located; provided however,
said charges shall be increased in the same percentage as any percentage
increase in the billing to Landlord for electricity for the entire Building,
by
reason of increase in Landlord’s electric rates or service classifications,
subsequent to January 1, 1970, and so as to reflect any increase in Landlord’s
electric charges, including changes in market prices for electricity from
utilities and/or other providers, in fuel adjustments or by taxes or charges
of
any kind imposed on Landlord’s electricity purchases or redistribution, or for
any other such reason, subsequent to said date. Any such percentage increase
in
Landlord’s billing for electricity due to changes in rates, service
classifications, or market prices, shall be computed by the application of
the
average consumption (energy and demand) of electricity for the entire Building
for the twelve (12) full months immediately prior to the rate and/or service
classification change, or any changed methods of or rules on billing for
same,
applied on a consistent basis to the new rate and/or service classification
or
market price, and to the classification and rate in effect on January 1,
1970.
If the average consumption of electricity for the entire Building for said
prior
twelve (12) months cannot reasonably be applied and used with respect to
changed
methods of or rules on billing, then the percentage shall be computed by
the use
of the average consumption (energy and demand) for the entire Building for
the
first three (3) months after such change, projected to a full twelve (12)
months, so as to reflect the different seasons; and that same consumption,
so
projected, shall be applied to the service classification and rate in effect
on
January 1, 1970. Where more than one meter measures the service of Tenant
in the
Building, the service rendered through each meter may be computed and billed
separately in accordance with the rates herein specified. Bills therefore
shall
be rendered at such times as Landlord may elect and the amount, as computed
from
a meter, shall be deemed to be, and be paid as, Additional Rent. In the event
that such bills are not paid within five (5) days after the same are rendered,
Landlord may, without further notice, discontinue the service of electric
current to the Premises without releasing Tenant from any liability under
this
Lease and without Landlord or Landlord’s agent incurring any liability for any
damage or loss sustained by Tenant by such discontinuance of service. If
any tax
is imposed upon Landlord’s receipt from the sale, resale or redistribution of
electricity or gas or telephone service to Tenant by any Federal, State,
or
Municipal authority, Tenant covenants and agrees that where permitted by
law,
Tenant’s pro-rata share of such taxes shall be passed on to and included in the
xxxx of, and paid by, Tenant to Landlord.
41.08
If
all or part of the submetering Additional Rent or the ERIF payable in accordance
with Section 41.03 or 41.04 of this Article becomes uncollectible or reduced
or
refunded by virtue of any law, order or regulations, the parties agree that,
at
Landlord’s option, in lieu of submetering Additional Rent or ERIF, and in
consideration of Tenant’s use of the Building’s electrical distribution system
and receipt of redistributed electricity and payment by Landlord of consultant’s
fees and other redistribution costs, the Fixed Annual Rental rate(s) to be
paid
under this Agreement shall be increased by an “alternative charge” which shall
be a sum equal to $3.00 per year per rentable square foot of the Premises,
changed in the same percentage as any increase in the cost to Landlord for
electricity for the entire Building subsequent to September 1, 2004, because
of
electric rate, service classification or market price changes, such percentage
change to be computed as in Section 41.04 provided.
41.09
Landlord
shall not be liable to Tenant for any loss or damage or expense which Tenant
may
sustain or incur if either the quantity or character of electric service
is
changed
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or
is no longer available or suitable for Tenant’s requirements. Tenant covenants
and agrees that at all times its use of electric current shall never exceed
the
capacity of existing feeders to the Building or wiring installation. Any
riser
or risers to supply Tenant’s electrical requirements, upon written request of
Tenant, will be installed by Landlord, at the sole cost and expense of Tenant,
if, in Landlord’s sole judgment, the same are necessary and will not cause
permanent damage or injury to the Building or the Premises or cause or create
a
dangerous or hazardous condition or entail excessive or unreasonable
alterations, repairs or expense or interfere with or disturb other tenants
or
occupants. In addition to the installation of such riser or risers, Landlord
will also at the sole cost and expense of Tenant, install all other equipment
proper and necessary in connection therewith subject to the aforesaid terms
and
conditions. The parties acknowledge that they understand that it is anticipated
that electric rates, charges, etc., may be changed by virtue of time-of-day
rates or changes in other methods of billing, and/or electricity purchases
and
the redistribution thereof, and fluctuation in the market price of electricity,
and that the references in the foregoing paragraphs to changes in methods
of or
rules on billing are intended to include any such changes. Anything hereinabove
to the contrary notwithstanding, in no event is the submetering Additional
Rent
or ERIF, or any “alternative charge”, to be less than an amount equal to the
total of Landlord’s payments to public utilities and/or other providers for the
electricity consumed by Tenant (and any taxes thereon or on redistribution
of
same) plus 5% thereof for transmission line loss, plus 15% thereof for other
redistribution costs. The Landlord reserves the right, at any time upon sixty
(60) days’ written notice, to change its furnishing of electricity to Tenant
from a rent inclusion basis to a submetering basis, or vice versa, or to
change
to the distribution of less than all the components of the existing service
to
Tenant. The Landlord reserves the right to terminate the furnishing of
electricity on a rent inclusion, submetering, or any other basis at any time,
upon sixty (60) days’ written notice to the Tenant, in which event the Tenant
may make application directly to the public utility and/or other providers
for
the Tenant’s entire separate supply of electric current and Landlord shall
permit its wires and conduits, to the extent available and safely capable,
to be
used for such purpose, but only to the extent of Tenant’s then authorized load.
Any meters, risers, or other equipment or connections necessary to furnish
electricity on a submetering basis or to enable Tenant to obtain electric
current directly from such utility and/or other providers shall be installed
at
Tenant’s sole cost and expense. Only rigid conduit or electricity metal tubing
(EMT) will be allowed. The Landlord, upon the expiration of the aforesaid
sixty
(60) days’ written notice to the Tenant may discontinue furnishing the electric
current but this Lease shall otherwise remain in full force and effect. If
Tenant was provided electricity on a rent inclusion basis when it was so
discontinued, then commencing when Tenant receives such direct service and
as
long as Tenant shall continue to receive such service, the Fixed Annual Rent
payable under this Lease shall be reduced by the amount of the ERIF which
was
payable immediately prior to such discontinuance of electricity on a rent
inclusion basis. Notwithstanding the foregoing, provided that Tenant promptly
applies for such direct service and diligently pursues such application to
completion, Landlord shall not so discontinue such redistributed service
until
Tenant obtains electric service directly from the public utility, unless
required by law.
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ARTICLE
42
LEASE
SUBMISSION
42.01
Landlord
and Tenant agree that this Lease is submitted to Tenant on the understanding
that it shall not be considered an offer and shall not bind Landlord in any
way
unless and until (i) Tenant has duly executed and delivered duplicate originals
thereof to Landlord and (ii) Landlord has executed and delivered one of said
originals to Tenant.
ARTICLE
43
INSURANCE
43.01.
Tenant
shall not violate, or permit the violation of, any condition imposed by the
standard fire insurance policy then issued for office buildings in the Borough
of Manhattan, City of New York, and shall not do, or permit anything to be
done,
or keep or permit anything to be kept in the Premises which would subject
Landlord to any liability or responsibility for personal injury or death
or
property damage, or which would increase the fire or other casualty insurance
rate on the Building or the property therein over the rate which would otherwise
then be in effect (unless Tenant pays the resulting premium as hereinafter
provided for) or which would result in insurance companies of good standing
refusing to insure the building or any of such property in amounts reasonably
satisfactory to Landlord.
43.02
Tenant
covenants to provide on or before the earlier to occur of (i) the Commencement
Date, and (ii) ten (10) days from the date of this Lease, and to keep in
force
during the term hereof the following insurance coverage which coverage shall
be
effective on the Commencement Date:
(a)
A
comprehensive policy of liability insurance naming Landlord and its designees
as
additional insureds protecting Landlord, its designees and Tenant against
any
liability whatsoever occasioned by accident on or about the Premises or any
appurtenances thereto. Such policy shall have limits of liability of not
less
than Three Million ($3,000,000.00) Dollars combined single limit coverage
on a
per occurrence basis, including property damage. Such insurance may be carried
under a blanket policy covering the Premises and other locations of Tenant,
if
any, provided such a policy contains an endorsement (i) naming Landlord and
its
designees as additional insureds, (ii) specifically referencing the Premises;
and (iii) guaranteeing a minimum limit available for the Premises equal to
the
limits of liability required under this Lease;
(b)
Fire
and extended coverage in an amount adequate to cover the cost of replacement
of
all personal property, fixtures, furnishings, equipment, improvements and
installations located in the Premises.
43.03
All
such policies shall be issued by companies of recognized responsibility licensed
to do business in New York State and rated by Best's Insurance Reports or
any
successor publication of comparable standing and carrying a rating of A+
VIII or
better or the then equivalent of such rating, and all such policies shall
contain a provision whereby the same cannot be canceled or modified unless
Landlord and any additional insured are given at least thirty (30) days prior
written notice of such cancellation or modification.
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43.04
Prior
to the time such insurance is first required to be carried by Tenant and
thereafter, at least fifteen (15) days prior to the expiration of any such
policies, Tenant shall deliver to Landlord either duplicate originals of
the
aforesaid policies or certificates evidencing such insurance, together with
evidence of payment for the policy. If Tenant delivers certificates as aforesaid
Tenant, upon reasonable prior notice from Landlord, shall make available
to
Landlord, at the Premises, duplicate originals of such policies from which
Landlord may make copies thereof, at Landlord's cost. Tenant's failure to
provide and keep in force the aforementioned insurance shall be regarded
as a
material default hereunder, entitling Landlord to exercise any or all of
the
remedies as provided in this Lease in the event of Tenant's default. In
addition, in the event Tenant fails to provide and keep in force the insurance
required by this Lease, at the times and for the durations specified in this
Lease, Landlord shall have the right, but not the obligation, at any time
and
from time to time, and without notice, to procure such insurance and/or pay
the
premiums for such insurance in which event Tenant shall repay Landlord within
five (5) days after demand by Landlord, as Additional Rent, all sums so paid
by
Landlord and any costs or expenses incurred by Landlord in connection therewith
without prejudice to any other rights and remedies of Landlord under this
Lease.
43.05
Landlord
and Tenant shall each endeavor to secure an appropriate clause in, or an
endorsement upon, each fire or extended coverage policy obtained by it and
covering the Building, the Premises or the personal property, fixtures and
equipment located therein or thereon, pursuant to which the respective insurance
companies waive subrogation or permit the insured, prior to any loss, to
agree
with a third party to waive any claim it might have against said third party.
The waiver of subrogation or permission for waiver of any claim hereinbefore
referred to shall extend to the agents of each party and its employees and,
in
the case of Tenant, shall also extend to all other persons and entities
occupying or using the Premises in accordance with the terms of this Lease.
If
and to the extent that such waiver or permission can be obtained only upon
payment of an additional charge then, except as provided in the following
two
paragraphs, the party benefiting from the waiver or permission shall pay
such
charge upon demand, or shall be deemed to have agreed that the party obtaining
the insurance coverage in question shall be free of any further obligations
under the provisions hereof relating to such waiver or permission.
43.06
In
the event that Landlord shall be unable at any time to obtain one of the
provisions referred to above in any of its insurance policies, at Tenant's
option, Landlord shall cause Tenant to be named in such policy or policies
as
one of the insureds, but if any additional premium shall be imposed for the
inclusion of Tenant as such an assured, Tenant shall pay such additional
premium
upon demand. In the event that Tenant shall have been named as one of the
insureds in any of Landlord's policies in accordance with the foregoing,
Tenant
shall endorse promptly to the order of Landlord, without recourse, any check,
draft or order for the payment of money representing the proceeds of any
such
policy or any other payment growing out of or connected with said policy
and
Tenant hereby irrevocably waives any and all rights in and to such proceeds
and
payments.
43.07
In
the event that Tenant shall be unable at any time to obtain one of the
provisions referred to above in any of its insurance policies, Tenant shall
cause Landlord to be named in such policy or policies as one of the insureds,
but if any additional premium shall be imposed for the inclusion of Landlord
as
such an assured, Landlord shall pay such additional
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premium
upon demand or Tenant shall be excused from its obligations under this paragraph
with respect to the insurance policy or policies for which such additional
premiums would be imposed.
43.08
Subject
to the foregoing provisions of this Article, and insofar as may be permitted
by
the terms of the insurance policies carried by it, each party hereby releases
the other with respect to any claim (including a claim for negligence) which
it
might otherwise have against the other party for loss, damages or destruction
with respect to its property by fire or other casualty (including rental
value
or business interruption, as the case may be) occurring during the Term of
this
Lease.
43.09
If,
by reason of a failure of Tenant to comply with the provisions of this Lease,
the rate of fire insurance with extended coverage on the building or equipment
or other property of Landlord shall be higher than it otherwise would be,
Tenant
shall reimburse Landlord, on demand, for that part of the premiums for fire
insurance and extended coverage paid by Landlord because of such failure
on the
part of Tenant.
43.10.
Landlord
may, from time to time, require that the amount of the insurance to be provided
and maintained by Tenant hereunder be increased so that the amount thereof
adequately protects Landlord's interest, but in no event in excess of the
amount
that would be required by other tenants in other similar office buildings
in the
borough of Manhattan.
43.11
A
schedule or make up of rates for the building or the Premises, as the case
may
be, issued by the New York Fire Insurance Rating Organization or other similar
body making rates for fire insurance and extended coverage for the premises
concerned, shall be conclusive evidence of the facts therein stated and of
the
several items and charges in the fire insurance rate with extended coverage
then
applicable to such premises.
43.12
Each
policy evidencing the insurance to be carried by Tenant under this Lease
shall
contain a clause that such policy and the coverage evidenced thereby shall
be
primary with respect to any policies carried by Landlord, and that any coverage
carried by Landlord shall be excess insurance.
ARTICLE
44
SIGNAGE
44.01
Tenant
shall be permitted to affix either sign or plaque on or adjacent to the entrance
door to the Premises, subject to the prior written approval of Landlord which
shall not be unreasonably withheld subject to the other provisions of this
article, with respect to location, design, size, materials, quality, coloring,
lettering and shape thereof, and subject, also, to compliance by Tenant,
at its
expense, with all applicable legal requirements or regulations. All such
signage
shall be consistent and compatible with the design, aesthetics, signage and
graphics program for the Building as established by Landlord. Landlord may
remove any sign installed in
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violation
of this provision, and Tenant shall pay the cost of such removal and any
restoration costs.
ARTICLE
45
RIGHT
TO RELOCATE
45.01
Notwithstanding
anything contained in this Lease to the contrary, Landlord shall have the
right
to substitute in lieu of the Premises alternative space in the Building
designated by Landlord (the “Relocation
Space”)
effective as of the date (the “Relocation
Effective Date”)
set forth in a notice given to Tenant (the “Relocation
Notice”).
The Relocation Space shall be reasonably comparable to the Premises with
respect
to internal configuration, quality of finish and rentable square foot area
(i.e., plus or minus ten (10%) percent). The Relocation Effective Date shall
not
be less than sixty (60) days following the date upon which the Relocation
Notice
is given to Tenant. In the event that Landlord exercises its rights hereunder,
(i) Tenant shall deliver to Landlord possession of the Premises on or before
the
Relocation Effective Date vacant and broom clean, free of all occupancies
and
encumbrances and otherwise in accordance with the terms, covenants and
conditions of the Lease as if the Relocation Effective Date were the expiration
date of the Term of this Lease, (ii) effective as of the Relocation Effective
Date, the term and estate hereby granted with respect to the Premises originally
demised hereunder shall terminate, the Relocation Space shall be deemed to
be
the Premises and the Fixed Annual Rent and Additional Rent payable under
this
Lease shall be adjusted, if necessary, so as to reflect any difference between
the deemed rentable square foot area of the original Premises and said
Relocation Space.
45.02
Provided
that Tenant is not in default under this Lease, Landlord shall (i) at Landlord's
cost and expense, remove and reinstall Tenants' personal property, trade
fixtures and equipment in the Relocation Space (including the relocation
of
Tenant’s then existing voice and data capabilities) (“Landlord’s
Relocation Work”)
and (ii) compensate Tenant for Tenant’s actual, reasonable, out-of-pocket moving
and related expenses upon Tenant’s submission of paid invoices therefor.
Landlord shall complete Landlord’s Relocation Work on or before the Relocation
Effective Date provided that Tenant cooperates with Landlord and gives Landlord
full access to the Premises to facilitate the performance thereof.
45.03
Following
any relocation undertaken pursuant to this Article, Tenant shall promptly
execute and deliver an agreement confirming such relocation and fixing any
corresponding adjustments in Fixed Annual Rent and Additional Rent payable
under
this Lease, but any failure to execute such an agreement by Tenant shall
not
affect such relocation and adjustments as determined by Landlord.
45.04
Notwithstanding
anything contained herein to the contrary, Landlord and Tenant agree that
in no
event shall the fixed annual rent payable hereunder be increased in the event
the Relocation Space is larger than the Premises.
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ARTICLE
46
FUTURE
CONDOMINIUM CONVERSION
46.01
Tenant
acknowledges that the Building and the land of which the Premises form a
part
may be subjected to the condominium form of ownership prior to the end of
the
Term of this Lease. Tenant agrees that if, at any time during the Term, the
Building and the land shall be subjected to the condominium form of ownership,
then, this Lease and all rights of Tenant hereunder are and shall be subject
and
subordinate in all respects to any condominium declaration and any other
documents (collectively, the "Declaration")
which shall be recorded in order to convert the Building and the land of
which
the Premises form a part to a condominium form of ownership in accordance
with
the provisions of Article 9-B of the Real Property Law of the State of New
York
or any successor thereto. If any such Declaration is to be recorded, Tenant,
upon request of Landlord, shall enter into an amendment of this Lease in
such
respects as shall be necessary to conform to such condominiumization, including,
without limitation, appropriate adjustments to Real Estate Taxes payable
during
the Base Tax Year and Tenant's Share, as such terms are defined in Article
32
hereof provided that it does not materially increase Tenant’s obligations under
the Lease or materially decrease the marketable square footage of the Premises.
ARTICLE
47
MISCELLANEOUS
47.01
This
Lease represents the entire understanding between the parties with regard
to the
matters addressed herein and may only be modified by written agreement executed
by all parties hereto. All prior understandings or representations between
the
parties hereto, oral or written, with regard to the matters addressed herein
are
hereby merged herein. Tenant acknowledges that neither Landlord nor any
representative or agent of Landlord has made any representation or warranty,
express or implied, as to the physical condition, state of repair, layout,
footage or use of the Premises or any matter or thing affecting or relating
to
Premises except as specifically set forth in this Lease. Tenant has not been
induced by and has not relied upon any statement, representation or agreement,
whether express or implied, not specifically set forth in this Lease. Tenant
shall not be liable or bound in any manner by any oral or written statement,
broker's "set-up", representation, agreement or information pertaining to
the
Premises, the Building or this Agreement furnished by any real estate broker,
agent, servant, employee or other person, unless specifically set forth herein,
and no rights are or shall be acquired by Tenant by implication or otherwise
unless expressly set forth herein. This Lease shall be construed without
regard
to any presumption or other rule requiring construction against the party
causing this agreement to be drafted.
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ARTICLE
48
COMPLIANCE
WITH LAW
48.01
If,
at any time during the Term hereof, Landlord expends any sums for alterations
or
improvements to the Building which are required to be made pursuant to any
law,
ordinance or governmental regulation, Tenant shall pay to Landlord, as
Additional Rent, Tenant’s Share of such cost within ten (10) days after demand
therefor; provided, however, that if the cost of such alteration or improvement
is one which is required to be amortized over a period of time pursuant to
applicable governmental regulations, Tenant shall pay to Landlord, as Additional
Rent, during each year in which occurs any part of the Term, Tenant’s Share of
the cost thereof amortized on a straight line basis over an appropriate period,
but not more than five (5) years. In no event shall Tenant’s Share exceed the
sum of one ($1.00) dollar per rentable square foot of space per calendar
year
during the term of this Lease. Notwithstanding anything to the contrary
contained herein, in the event that the requirement for the performance of
any
such alteration of improvement is attributable to the actions, installations,
use or manner of use of the Premises by Tenant, then in such event Tenant
shall
be responsible to pay the entire cost imposed by Landlord with respect to
such
alteration of improvement.
IN
WITNESS WHEREOF,
the said Landlord, and the Tenant have duly executed this Lease as of the
day
and year first above written.
SLG GRAYBAR SUBLEASE LLC, a New York limited liability company | ||
|
|
|
By: | /s/ Xxxxxx X. Xxxxxx | |
|
||
Name: Xxxxxx X. Xxxxxx
Title: COO
|
Witness: | |
/s/ Xxxx Xxxxxxx | |
|
|
Name:
Xxxx Xxxxxxx
Title:
Administrative Assistant
|
XENOMICS, INC., as Tenant | ||
|
|
|
By: | /s/ Xxxxxxxx X. Xxxxxxx | |
|
||
Name:
Xxxxxxxx X. Xxxxxxx
Title:
Co-Chairman
|
Witness: | |
|
|
Name:
Title:
|
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RULES
AND REGULATIONS
MADE
A PART OF THIS LEASE
1.
No animals, birds, bicycles or vehicles shall be brought into or kept in
the
Premises. The Premises shall not be used for manufacturing or commercial
repairing or for sale or display of merchandise or as a lodging place, or
for
any immoral or illegal purpose, nor shall the Premises be used for a public
stenographer or typist; xxxxxx or beauty shop; telephone, secretarial or
messenger service; employment, travel or tourist agency; school or classroom;
commercial document reproduction; or for any business other than specifically
provided for in the Tenant’s lease. Tenant shall not cause or permit in the
Premises any disturbing noises which may interfere with occupants of this
or
neighboring Buildings, any cooking or objectionable odors, or any nuisance
of
any kind, or any inflammable or explosive fluid, chemical or substance.
Canvassing, soliciting and peddling in the Building are prohibited, and each
tenant shall cooperate so as to prevent the same.
2.
The toilet rooms and other water apparatus shall not be used for any purposes
other than those for which they were constructed, and no sweepings, rags,
ink,
chemicals or other unsuitable substances shall be thrown therein. Tenant
shall
not place anything out of doors, windows or skylights, or into hallways,
stairways or elevators, nor place foot or objects on outside window xxxxx.
Tenant shall not obstruct or cover the halls, stairways and elevators, or
use
them for any purpose other than ingress and egress to or from Tenant’s Premises,
nor shall skylights, windows, doors and transoms that reflect or admit light
into the Building be covered or obstructed in any way. All drapes and blinds
installed by Tenant on any exterior window of the Premises shall conform
in
style and color to the Building standard.
3.
Tenant shall not place a load upon any floor of the Premises in excess of
the
load per square foot which such floor was designed to carry and which is
allowed
by law. Landlord reserves the right to prescribe the weight and position
of all
safes, file cabinets and filing equipment in the Premises. Business machines
and
mechanical equipment shall be placed and maintained by Tenant, at Tenant’s
expense, only with Landlord’s consent and in settings approved by Landlord to
control weight, vibration, noise and annoyance. Smoking or carrying lighted
cigars, pipes or cigarettes in the elevators of the Building is
prohibited.
4.
Tenant shall not move any heavy or bulky materials into or out of the Building
or make or receive large deliveries of goods, furnishings, equipment or other
items without Landlord’s prior written consent, and then only during such hours
and in such manner as Landlord shall approve and in accordance with Landlord’s
rules and regulations pertaining thereto. If any material or equipment requires
special handling, tenant shall employ only persons holding a Master Rigger’s
License to do such work, and all such work shall comply with all legal
requirements. Landlord reserves the right to inspect all freight to be brought
into the Building, and to exclude any freight which violates any rule,
regulation or other provision of this Lease.
5.
No sign, advertisement, notice or thing shall be inscribed, painted or affixed
on any part of the Building, without the prior written consent of Landlord.
Landlord may remove
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anything
installed in violation of this provision, and Tenant shall pay the cost of
such
removal and any restoration costs. Interior signs on doors and directories
shall
be inscribed or affixed by Landlord at Tenant’s expense. Landlord shall control
the color, size, style and location of all signs, advertisements and notices.
No
advertising of any kind by Tenant shall refer to the Building, unless first
approved in writing by Landlord.
6.
No article shall be fastened to, or holes drilled or nails or screws driven
into, the ceilings, walls, doors or other portions of the Premises, nor shall
any part of the Premises be painted, papered or otherwise covered, or in
any way
marked or broken, without the prior written consent of Landlord.
7.
No existing locks shall be changed, nor shall any additional locks or bolts
of
any kind be placed upon any door or window by Tenant, without the prior written
consent of Landlord. Two (2) sets of keys to all exterior and interior locks
shall be furnished to Landlord . At the termination of this Lease, Tenant
shall
deliver to Landlord all keys for any portion of the Premises or Building.
Before
leaving the Premises at any time, Tenant shall close all windows and close
and
lock all doors.
8.
No Tenant shall purchase or obtain for use in the Premises any spring water,
ice, towels, food, bootblacking, barbering or other such service furnished
by
any company or person not approved by Landlord. Any necessary exterminating
work
in the Premises shall be done at Tenant’s expense, at such times, in such manner
and by such company as Landlord shall require. Landlord reserves the right
to
exclude from the Building, from 6:00 p.m. to 8:00 a.m., and at all hours
on
Sunday and legal holidays, all persons who do not present a pass to the Building
signed by Landlord. Landlord will furnish passes to all persons reasonably
designated by Tenant. Tenant shall be responsible for the acts of all persons
to
whom passes are issued at Tenant’s request.
9.
Whenever Tenant shall submit to Landlord any plan, agreement or other document
for Landlord’s consent or approval, Tenant agrees to pay Landlord as Additional
Rent, on demand, an administrative fee equal to the sum of the reasonable
fees
of any architect, engineer or attorney employed by Landlord to review said
plan,
agreement or document and Landlord’s administrative costs for same.
10.
The use in the Premises of auxiliary heating devices, such as portable electric
heaters, heat lamps or other devices whose principal function at the time
of
operation is to produce space heating, is prohibited.
11.
Tenant shall keep all doors from the hallway to the Premises closed at all
times
except for use during ingress to and egress from the Premises. Tenant
acknowledges that a violation of the terms of this paragraph may also constitute
a violation of codes, rules or regulations of governmental authorities having
or
asserting jurisdiction over the Premises, and Tenant agrees to indemnify
Landlord from any fines, penalties, claims, action or increase in fire insurance
rates which might result from Tenant's violation of the terms of this
paragraph.
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12.
Tenant shall be permitted to maintain an "in-house" messenger or delivery
service within the Premises, provided that Tenant shall require that any
messengers in its employ affix identification to the breast pocket of their
outer garment, which shall bear the following information: name of Tenant,
name
of employee and photograph of the employee. Messengers in Tenant's employ
shall
display such identification at all time. In the event that Tenant or any
agent,
servant or employee of Tenant, violates the terms of this paragraph, Landlord
shall be entitled to terminate Tenant's permission to maintain within the
Premises in-house messenger or delivery service upon written notice to
Tenant.
13.
Tenant will be entitled to three (3) listings on the Building lobby directory
board, without charge. Any additional directory listing (if space is available),
or any change in a prior listing, with the exception of a deletion, will
be
subject to a fourteen ($14.00) dollar service charge, payable as Additional
Rent.
14.
In case of any conflict or inconsistency between any provisions of this Lease
and any of the rules and regulations as originally or as hereafter adopted,
the
provisions of this Lease shall control.
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CLEANING
SPECIFICATIONS
A)
|
GENERAL
CLEANING - NIGHTLY
|
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|
Dust
sweep all stone, ceramic tile, marble terrazzo, asphalt tile, linoleum,
rubber, vinyl and other types of flooring
|
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Carpet
sweep all carpets and rugs four (4) times per week
|
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Vacuum
clean all carpets and rugs, once (1) per week
|
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Police
all private stairways and keep in clean condition
|
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|
Empty
and clean all wastepaper baskets, ash trays and receptacles; damp
dust as
necessary
|
-
|
Clean
all cigarette urns and replace sand or water as
necessary
|
-
|
Remove
all normal wastepaper and tenant rubbish to a designated area in
the
premises. (Excluding cafeteria waste, bulk materials, and all special
materials such as old desks, furniture etc.)
|
-
|
Dust
all furniture, and window xxxxx as necessary
|
-
|
Dust
clean all glass furniture tops
|
-
|
Dust
all chair rails, trim and similar objects as necessary
|
-
|
Dust
all baseboards as necessary
|
-
|
Wash
clean all water fountains
|
-
|
Keep
locker and service closets in clean and orderly
condition
|
B)
|
LAVATORIES-NIGHTLY
(EXCLUDING PRIVATE & EXECUTIVE LAVATORIES)
|
-
|
Sweep
and mop all flooring
|
-
|
Wipe
clean all mirrors, powder shelves and brightwork, including flushometers,
piping toilet seat hinges
|
-
1
-
-
|
Wash
and disinfect all basins, bowls and urinals
|
-
|
Wash
both sides of all toilet seats
|
-
|
Dust
all partitions, tile walls, dispensers and receptacles
|
-
|
Empty
and clean paper towel and sanitary disposal receptacles
|
-
|
Fill
toilet tissue holders, soap dispensers and towel dispensers; materials
to
be furnished by Landlord
|
-
|
Remove
all wastepaper and refuse to designated area in the
premises
|
C)
|
LAVATORIES-PERIODIC
CLEANING (EXCLUDES PRIVATE & EXECUTIVE LAVATORIES)
|
-
|
Machine
scrub flooring as necessary
|
-
|
Wash
all partitions, tile walls, and enamel surfaces periodically, using
proper
disinfectant when necessary
|
D)
|
DAY
SERVICES - DUTIES OF THE DAY PORTERS
|
-
|
Police
ladies' restrooms and lavatories, keeping them in clean
condition
|
-
|
Fill
toilet dispensers; materials to be furnished by
Landlord
|
-
|
Fill
sanitary napkin dispensers; materials to be furnished by
Landlord
|
E)
|
SCHEDULE
OF CLEANING
|
-
|
Upon
completion of the nightly chores, all lights shall be turned off,
windows
closed, doors locked and offices left in a neat and orderly
condition
|
-
|
All
day, nightly and periodic cleaning services as listed herein, to
be done
five nights each week, Monday through Friday, except Union and
Legal
Holidays
|
-
|
All
windows from the 2nd floor to the roof will be cleaned inside out
quarterly, weather permitting
|
-
2
-
EXHIBIT
A
-
3
-
EXHIBIT
B
FIXED
ANNUAL RENT SCHEDULE
DATES
|
ANNUAL
RENT
|
MONTHLY
INSTALLMENT
|
September
15, 2004 - September 30, 2005
|
$71,649.50
|
$5,970.79
|
October
1, 2005 - September 30, 2006
|
$73,082.49
|
$6,090.20
|
October
1, 2006 - September 30, 2007
|
$74,544.14
|
$6,212.01
|
October
1, 2007 - September 30, 2008
|
$76,035.02
|
$6,336.25
|
October
1, 2008 - September 30, 2009
|
$77,555.72
|
$6,462.98
|
October
1, 2009 - September 30, 2010
|
$79,106.84
|
$6,592.24
|
October
1, 2010 - September 30, 2011
|
$80,688.97
|
$6,724.08
|
-
4
-
EXHIBIT
C
(i)
|
Pursuant
to the plans annexed hereto and made a part hereof as Exhibit C-1,
Landlord shall construct and install a glass-walled conference
room using
building standard materials, in a building standard manner.
|
-
5
-