EIGHTH LEASE MODIFICATION AGREEMENT
EIGHTH LEASE MODIFICATION AGREEMENT
AGREEMENT made as of May 25, 2006, by and between 000 XXXX 00XX XX. ASSOCIATES L.L.C., a limited liability company having its office at 00 Xxxx 00xx Xxxxxx, Xxx Xxxx, Xxx Xxxx (hereinafter called "Landlord"); and XXXX BUILDING ASSOCIATES L.L.C., a limited liability company having its office at 00 Xxxx 00xx Xxxxxx, Xxx Xxxx, Xxx Xxxx (hereinafter called "Tenant").
W I T N E S S E T H:
WHEREAS, on September 30, 1953 a net lease covering the entire premises known as the Xxxx Building, located at 000 Xxxx 00xx Xxxxxx, Xxx Xxxx, Xxx Xxxx (the "Building"), was made between Landlord's predecessor , partnership known as 000 Xxxx 00xx Xx. Associates and Tenant's predecessor, a partnership known as Xxxx Building Associates, which lease was assigned on May 1, 1954 by said predecessor to Tenant (also formerly known as Xxxx Building Associates); and
WHEREAS, said lease was modified by Modification Agreement dated June 12, 1961, by Second Modification Agreement dated June 10, 1965, by Third Lease Modification Agreement dated as of May 1, 1975, by Fourth Lease Modification Agreement dated November 12, 1985, by Fifth Lease Modification Agreement dated as of September 1, 1999, by Sixth Lease Modification Agreement dated as of November 17, 2000 and by Seventh Lease Modification Agreement dated as of December 28, 2004 (which lease, as so modified, is hereinafter called the "Lease"); and
WHEREAS, a modernization program had been undertaken to maintain the competitive position of the Building for which funds were borrowed by Landlord and made available to Tenant; and
WHEREAS, additional enhancements to the Building are deemed necessary to maintain such competitive position; and
WHEREAS, Landlord is willing to make funds available for such enhanced program, provided that Basic Rent (as hereinafter defined) is increased as hereinafter provided, and Tenant is willing to apply the funds as agent for Landlord toward the cost of such program.
NOW, THEREFORE, in consideration of the sum of Ten ($10.00) Dollars, the mutual promises and covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be bound, hereby agree as follows:
- Landlord and Tenant agree that improvements substantially as shown on Exhibit A to the Sixth Lease Modification Agreement and Exhibit A to the Seventh Lease Modification Agreement have been undertaken, The additional enhancements referred to in the recital above, as shown on Schedule A attached hereto and made a part hereof, constitute the enhanced modernization program referred to herein and shall be substantially made to the demised premises. All work performed by Tenant in furtherance of such modernization program shall be done as agent for Landlord and for the account of Landlord, and when completed, shall become the property of Landlord. All net proceeds of any loan(s) obtained in connection with such modernization program shall be turned over by Landlord to Tenant and applied to pay the costs of such program.
- A. There is hereby added to fixed payments of Basic Rent payable under Paragraph 2(A) the amount of the installments of debt service (except any balloon payment at maturity) payable under any Permitted Mortgage.
- Paragraph 29 of the Lease shall be deleted and restated in its entirety as follows:
- 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.
- This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective legal representatives, successors and assigns.
B. Paragraph 13 of the Lease shall be deleted and restated in its entirety as follows:
"13. Tenant agrees that its rights hereunder are subordinate to (i) the $30,5000,000 consolidated mortgage presently encumbering the demised premises plus refinancing costs in connection therewith and (ii) up to an aggregate of $33,400,000 of principal secured any future mortgages (whether having a first or subordinate lien priority) placed on the demised premises by Landlord plus refinancing costs in connection with such future mortgages, provided that (a) such new mortgages are made by an institutional lender on a non-recourse basis and (b) the proceeds of any increase in the principal amount of the loan(s) secured by such new mortgage(s) are used to refinance the then existing mortgage(s) on the demised premises and/or in connection with the demised premises (each mortgage to which Tenant's rights hereunder are subordinate is hereinafter a "Permitted Mortgage"). Tenant agrees to execute, upon demand, any documents required to evidence such subordination. Tenant further agrees that it will not do or suffer to be done any act upon the demised premises which will violate any of the terms of any Permitted Mortgage or the obligations secured thereby."
"29. For the purpose of this Paragraph 29, the term "Mortgage" shall mean (i) any fee mortgage encumbering the demised premises on the date hereof and (ii) any Permitted Mortgage to which the 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 Mortgage. In the event that there shall be one or more refinancings of any Mortgage, the annual Basic Rent will be in an amount equal to the sum of TWENTY-EIGHT THOUSAND DOLLARS ($28,000.00) plus an amount equal to the installment payments for interest and/or amortization (not including any balloon principal payment due at maturity) required annually under any such Mortgage immediately subsequent to refinancing."
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands as of the day and year first above written.
Landlord:
000 XXXX 00XX XX. ASSOCIATES L.L.C.
By: /s/ Xxxxx X Xxxxxx
Xxxxx X. Xxxxxx, Member
By: /s/ Xxxxxxx X. Xxxxxx
Xxxxxxx X. Xxxxxx, Member
Tenant:
XXXX BUILDING ASSOCIATES L.L.C.
By /s/ Xxxxx X Xxxxxx Xxxxx X. Xxxxxx, Member
Schedule A
000 Xxxx 00xx Xxxxxx - Ten Year Base Building Capital Program
Major Projects
Public corridors and elevator lobbies
Main lobby (incl. $120k buy-out of newsstand)
Fire alarm
Marketing office (cosmetic upgrade)
Marketing office relocation
Elevator cab upgrade
Passenger elevator car upgrades
Sidewalk elevator replacement
CCTV installation @ elevator cabs
Window replacement
Façade renovation
Roof replacement
Backflow preventers
House tanks replacement & capacity upgrade
New energy efficient chiller plant
Chimney modifications
Security & communication system improvements
Subway entrance renovation
Retail storefronts and signage
Bathroom renovations throughout
Visitor access styems
Sidewalk replacement
Freight entrance renovation
Electric service upgrade
Sewer ejector pump replacement
Other building code upgrades
BMS system for building controlled ac
Demolition/ACM abatement - out of service boiler
Cooling tower
Sprinkler review and investigation for code change
Sprinkler installation
Air handler replacements
Other miscellaneous
Toilet exhaust riser
DC electric conversion
Freight elevator mod/new cabs
Local law 11/98
Roof replacement 17th floor N, E, W
Replacement of 26th floor mansard
Oil tank replacement
Fire escape -misc. repairs/paint
ADA power assisted doors for front entrance
Electrical distribution upgrade
Replacement of vent stacks (20%)
Abatement/re-insulate of bathroom riser
Project management fee at 2.5%
Litigation cost façade Flag/Karman
