SIXTH LEASE MODIFICATION AGREEMENT
SIXTH LEASE MODIFICATION AGREEMENT
AGREEMENT made as of October 1, 1987 between 00 XXXX 00XX XX. ASSOCIATES, a co-partnership having its office at 00 Xxxx 00xx Xxxxxx, Xxx Xxxx, Xxx Xxxx (hereinafter called "Landlord") and LINCOLN BUILDING ASSOCIATES, a co-partnership, having its office at GO East 42nd Street, New York, New York (hereinafter called "Tenant")
W I T N E S S E T H:
WHEREAS, the parties entered into an agreement of lease dated October 1, 1958, whereby Landlord leased to Tenant, and Tenant hired that certain parcel of real property, with the buildings and improvements thereon, known as and by the street numbers 00 Xxxx 00xx Xxxxxx and 000 Xxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx, together with the fixtures, chattels and articles of personal property used in connection with said premises; and
WHEREAS, the lease was modified by agreements dated January 1, 1964, as of January 1, 1977, as of April 1, 1979, as of April 1, 1981 and as of April 1, 1982 (which lease, as so modified, is hereinafter called the "Lease"); and
WHEREAS, Landlord and Tenant wish to further modify the Lease.
NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, the parties agree that the Lease shall be and is hereby modified in the manner hereinafter set forth:
1. Paragraph 2A(ii) of the Lease shall be deemed deleted in its entirety and the following substituted in its place and stead:
"(ii) Commencing October 1, 1987, Tenant covenants to pay, in equal monthly installments of $94,339.58 each, in advance, on the first day of each month during the term of this Lease, and any renewal tern of this Lease, a basic rent (hereinafter called "Basic Rent") at an annual rate of ONE MILLION, ONE HUNDRED AND THIRTY-TWO THOUSAND SEVENTY-FIVE DOLLARS AND 00/100 ($1,132,075.00), said amount being equal to the sum of the current mortgage charges plus $24,000; it being understood and agreed that the amount of Basic Rent shall be adjusted upon refinancing of any First Mortgage (as defined in Paragraph 30), subject to and in accordance with the provisions of Paragraph 30."
2. The parties confirm that Paragraph 30 of the Lease reads as follows:
"30. For the purpose of this Paragraph 30, the term 'First Mortgage' shall mean any first fee mortgage to which this Lease is subordinate under the provisions of Paragraph 13 of this Lease and the term 'refinancing' shall include any consolidation, modification, renewal, extension or replacement of any First Mortgage made subsequent to April 1, 1979. In the event that there shall be one or more refinancings of any First Mortgage, for the period prior to the full liquidation of the Mortgage, the Basic Rent will be modified to equal the sum of TWENTY-FOUR THOUSAND DOLLARS ($24,000.00) plus an amount equal the product of (A) the new debt service percentage rate under such refinanced First Mortgage multiplied by (B) the principal balance of the First Mortgage immediately prior to each such refinancing.
The following illustrates the intention of the parties hereto as to the computation of the aforementioned adjustment of the Basic Rent:
Assuming a refinancing of the First Mortgage and the principal balance of the First Mortgage were increased from $12,293,973 to $15,000,000 and the new annual debt service requirements were $1,650,000 or at the rate of 11% of that new principal balance, that portion of the Basic Rent relating to the mortgage charges would be increased to $1,352,337, 11% of the balance immediately prior to such refinancing. The balance of the charges on the First Mortgage or $297,663 would be paid by Landlord from Additional Rent and Landlord would retain the full net proceeds of such refinancing.
In the event of subsequent refinancings of the First Mortgage, the principal balance referred to in (B) above, shall be reduced by the amount of mortgage amortization payable from Basic Rent subsequent to the first refinancing of the First Mortgage."
3. Except as herein modified, the Lease shall remain in full force and effect, and the parties hereby ratify and confirm all of the other terms, covenants and conditions thereof.
4. This Sixth Lease Modification Agreement shall be binding upon an inure to the benefit of the parties hereto and their respective legal representatives, successors and assigns.
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written.
00 XXXX 00XX XX. ASSOCIATES
By: /s/ Xxxxx Xxxxxxxxx Partner
LINCOLN BUILDING ASSOCIATES
By: /s/ Xxxxx X. Xxxxxx Partner
