EXHIBIT 99.1
LEASE TERMINATION AGREEMENT
This LEASE TERMINATION AGREEMENT, made as of October 4, 2001, between THE
XXXXXX, CHURCH WARDENS AND VESTRYMEN OF TRINITY CHURCH IN THE CITY OF NEW YORK,
having its office and address at 00 Xxxxxxx Xxxxx in the Borough of Manhattan,
City, County and State of New York (hereinafter referred to as the "Landlord")
and STARMEDIA NETWORK, INC., having an address at 00 Xxxxxx Xxxxxx, Xxx Xxxx,
Xxx Xxxx (hereinafter referred as the "Tenant").
W I T N E S S E T H:
WHEREAS, the Landlord and the Tenant entered into an agreement of lease
dated as of November 22, 1999 and amended as of October 5, 2000 (the "Lease"),
wherein the Landlord let to Tenant and Tenant took and hired from the Landlord
the entire 8th and 9th floors as described in the Lease (the "Premises"), in
the building of the Landlord known as One Xxxxxx Square and located at 00 Xxxxxx
Xxxxxx, Xxx Xxxx, Xxx Xxxx, for a term to expire on or about November 30, 2011,
at the rentals and upon the other terms, covenants and conditions in such Lease
set forth;
WHEREAS, Landlord and Tenant have agreed to an earlier termination of the
Lease, on the terms and conditions hereinafter set forth;
NOW, THEREFORE, in consideration of the premises and the mutual promises
of the parties hereto, Landlord and Tenant hereby agree as follows:
1. Landlord and Tenant agree that, subject to the provisions of this
Agreement, the term of the Tenant in the Premises, under the Lease, shall
terminate and come to an end as of 12:00 a.m. on October 5, 2001, (the "Lease
Termination Date"), as if said date were the date originally specified in the
Lease for the expiration of the term to the intent and purpose that all the
term, right and estate of the Tenant, with respect to the Premises, shall expire
on such date. Not later than the Lease Termination Date, time being of the
essence, the Tenant shall quit, vacate and surrender and terminate its occupancy
of the Premises and surrender the Premises to the Landlord, "broom clean" in "as
is" condition.
2. (a) Simultaneously with the Lease Termination Date, the Landlord is
entering into a license agreement with The Bank of New York ("BNY") relating to
the Premises. The Landlord understands that BNY intends to enter into a
sublicense (the "Sublicense") with the Tenant pursuant to which the Tenant will
be granted a license to occupy a portion of the Premises (the "Sublicensed
Space") until November 9, 2001 (the "Sublicense Termination Date"), and the
Landlord hereby consents to such sublicense.
(b) In connection with this Agreement and the Tenant's sublicensing the
Sublicensed Space, the Landlord confirms that (i) the Tenant has paid all fixed
rent and all escalations amount payable under Article Thirty of the Lease for
all periods through September 30, 2001 (ii) the electric current furnished to
the Tenant pursuant to the Lease does not exceed any limitation in the Lease on
the Tenant's demand for, or consumption of electric current, (iii) the Landlord
will make available to BNY, as the licensee of the Premises, all of the services
which were previously made available to the Tenant under the terms of the Lease
(it being understood that to the extent that the Lease provided for the payment
to the Landlord of a separate charge for any such service, then (regardless of
whether or not so provided in the License) the Landlord will only be required to
furnish any such service to the extent that it receives the separate charge
therefor at the rate set forth in the Lease), and (iv) to the Landlord's
knowledge, the Tenant's use or occupancy of the Premises, as of the Lease
Termination Date, does not presently in any manner (x) exceed the design loads
for the building or exceed the capacity of the building systems providing
exhaust, heating, cooling, ventilation, electrical, life safety, water, sewer or
other utility or safety services to the building.
(c) Paragraph (b) of Article Four of the Lease requires the Tenant to
convey to the Landlord all of its right, title and interest in and to all
permanent alterations, decorations, additions and improvements and other
fixtures made by or on behalf of the Tenant in the Premises, (hereinafter
collectively referred to as the "Tenant Improvements"). The Landlord understands
that (i) the Tenant intends to transfer and convey the Tenant Improvements to
BNY, and (ii) the Tenant has also agreed to sell to BNY the furniture,
equipment, trade fixtures of the Tenant listed in Schedule 1 hereto (the "Tenant
Personal Property").
(d) In accordance with the provisions of Lease relating to the surrender
of the Premises, the Tenant agrees that, prior to the Lease Expiration Date, it
will remove from the portion of the Premises which does not constitute the
Sublicensed Space, all stock, furniture, machinery and equipment personal
property, rubbish and debris from the Premises (other than the Tenant Personal
Property, the Tenant Improvements and the "Ancillary P & E" as (defined in the
Sublicense)). The Tenant shall not be required to remove any Tenant Personal
Property or any such stock, furniture,
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machinery and equipment or personal property from the Sublicensed Space. The
Landlord agrees that to the extent that the Tenant is transferring any Tenant
Improvement to BNY, the Landlord waives the requirement that any such Tenant
Improvement be transferred to the Landlord and any requirement that the Tenant
remove any such Tenant Improvement.
3. The Tenant agrees that it will fully and faithfully perform the terms
and conditions of the Lease through the Lease Termination Date and will pay all
amounts accruing under the Lease through the Lease Termination Date, except that
the Tenant will not be required to pay fixed rent or any escalation payable
pursuant to Article Thirty of the Lease which would accrue with respect to any
period commencing after September 30, 2001.
4. (a) Pursaunt to Article Twenty-Nine of the Lease, the Landlord
currently holds as a security for the Tenant's performance of its obligations
under the Lease a letter of credit in favor of the Landlord in the amount of
$5,000,000 (the "Letter of Credit"). Simultaneously with the execution of this
Agreement, the Landlord agrees to execute a notice to Citibank releasing all
rights the Landlord has in the Letter of Credit (the "Notice"). The Letter of
Credit and the Notice shall be placed in escrow with the Tenant's attorney's,
Xxxx, Marks & Xxxxx, (the "Escrow Agreement"), and shall be released from such
escrow upon the Tenant's vacating and surrendering the Sublicensed Space. The
rights and obligations of the Escrow Agent are set forth in Schedule 2 hereto
and are hereby incorporated by reference.
(b) In lieu of the Letter of Credit which is being released in
accordance with paragraph 4(a) above, simultaneously upon Tenant's receipt of
the first installment of the Surrender Fee from BNY, as such term is defined
in the Sublicense Agreement, Tenant shall deposit with the Landlord the sum
of $120,000.00 to be held as security (the "Replacement Security") pursuant
to Article Twenty-Nine of the Lease to insure the Tenant's payment of all
electricity charges (the "Electricity Charges") accuring prior to the Lease
Termination Date in accordance with the terms of the Lease. The Tenant agrees
that the Letter of Credit will not be surrendered or returned to the Tenant
or the issuing bank until the Replacement Security has been deposited with
the Landlord. The Landlord shall deduct from the Replacement Security the
Electricity Changes due and owing through the Lease Termination Date and
shall promptly return the remaining balance, if any. The foregoing is without
prejudice to the Tenant's right to dispute the amount of the Electricity
Charges.
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5. The Landlord and the Tenant agree that the provisions of paragraph 12F
of the Sublicense are hereby incorporated by reference. Landlord and Tenant
agree to indemnify and hold one another harmless from and against all demands,
liabilities, losses, causes of action, damages, costs and expenses (including,
without limitation, attorneys' fees and disbursements) suffered or incurred in
connection with any claims for a brokerage commission, finder's fee,
consultation fees or other compensation arising out of any conversations or
negotiations had by the party against whom indemnification is claimed with any
broker or other party, except for Xxxxxxxxxx Picket & Gross, Inc., and Newmark
Company Real Estate Group, Inc., in connection with this Lease Termination or
the Sublicense.
6. This Agreement may be signed in counterparts and delivered by facsimile
transmission.
IN WITNESS WHEREOF, the parties have caused these presents to be duly
executed as of the day and year first above written.
THE XXXXXX, CHURCH WARDENS AND
VESTRYMEN OF TRINITY CHURCH IN
THE CITY OF NEW YORK
By: /s/ Xxxxxxx X. Xxxxxx
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Director of Leasing
XXXXXXX X. XXXXXX
By: /s/ Xxxxxx Xxxx Xxxxxxxx
--------------------------------
Xx. Xxxxxx Xxxx Xxxxxxxx
Xxxxxx
STARMEDIA NETWORK, INC.
By: /s/ Xxxxxxx Xxxxxxx
--------------------------------
Name: Xxxxxxx Xxxxxxx
Title: President/CEO
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SCHEDULE 1
TENANT PERSONAL PROPERTY
FURNITURE FIXTURES AND EQUIPMENT INVENTORY
0 XXXXXX XXXXXX ENTIRE 8TH AND 9TH FLOORS
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QUANTITY DESCRIPTION
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17 Risom Lounge Chair
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27 Jamaica Barstool
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6 Tulip Chair with Swivel Action
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32 Aeron Single Stage Pneumatic Lift
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6 Davisfur Rectangular Top 6'-0 x42"
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16 Davisfur Rectangular Top 5'-0 x42"
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1 Davisfur 72" diameter top
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122 Vitrasea Persona Plus Manger Chair with Arms
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17 Dr. No (Xxxxxxxx Xxxxxx)
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61 2 High Lateral File
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20 3 High Lateral File
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6 4 High Lateral File
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2 Chauffeuse Delta Armless Lounge Chair
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1 Chauffeuse Delta Table
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1 Oval Top Table
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3 Xxxx 4 Long Back Side Chair
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10 Xxxx 2 Mid Back Executive Chair
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1 Xxxxxxx Nanotta 3 Seater Sofa
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1 Noguchi Table
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1 Zepher End Table
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1 Otera Rectangular Conference Table
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2 Gehery Chair
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1 Stadium Lounge Chair
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1 Stadium Sofa
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3 Xxxxx Table
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3 Attache Series Credenza
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1 The 21 Hotel Format Grand Suite Collection Arm Chair
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7 Gemini 60x60, 5x10 Overall with Intercept Data/Electric Unit
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126 Pedestal - One Pencil Two File Drawers
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9 Calida Floor Lamp
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46 Lounge Chair Spring Collection
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4 Sofa with Modular Back/Armrest Units
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5 Arm Chair
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13 End Table
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1 Gemini Series 60" Diameter Top with Intercept Data/Electrical Unit
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18 Coffee Table
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QUANTITY DESCRIPTION
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20 Lounge Chair with Casters
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3 45 Degree Table
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8 Elliptical End Arm Left
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3 Elliptical Intermediate Arm
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3 Ottoman
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482 Amicus Synchro-Tilt Mid-Back Chairs
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436 Chronicle Mobile Pedestal
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215 Seat Cushion For Chronicle Mobile Pedestal
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178 Delta Table/Right
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178 Delta Table/Left
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716 Open End
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352 Lockable Casters
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386 Modesty Panel
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366 Table Rail
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181 Translucent Screen
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17 Flush Plate
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2 Corner Xxxxx
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49 Full Xxxxx
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17 Shared Half Xxxxx
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4 Inside Modesty
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17 Box/Box/File
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18 File/File
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45 Storage Cabinet with Hinged Doors
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33 Delta Worksurface
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2 Aalto Lounge Chair
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1 Vertex Lecturn
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10 42x84 Rectangular Table
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4 30x72 Rectangular Table
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1 30x60 Rectangular Table
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14 30x48 Rectangular Table
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14 30x42 Bean Table
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14 Basic Cabinet with Lock
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2 Mail Center Sorter
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1 Glass Top Lafayette Table
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12 Flexible Cable Duct (Wiring Accessory)
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Kastle Systems- Electronic Security System
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Kastle Systems- Silent Alarm System
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Kastle Systems- Video Intercom System
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Existing Meridian Phone System
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Existing 400 Telephone Sets (M3902 etc.)
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Voicemail system hardware and software
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Call pilot, desktop messaging, recorder announcers
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All existing horizontal and vertical cabling
plant/infrastructure (fiber and
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copper)
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Existing Data Center, UPS and air conditioning
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All existing kitchen fixtures
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SCHEDULE 2
ESCROW PROVISIONS:
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(i) Escrow Agent may act upon any instrument or other writing
believed by it in good faith to be genuine and to be signed and presented by the
proper person without being required to determine the accuracy and correctness
thereof or the authority of such person and it shall not be liable in connection
with the performance of any duties imposed upon Escrow Agent by the provisions
of this Agreement, except for damage caused by Escrow Agent's own gross
negligence or willful default. This Agreement expressly sets forth all the
duties of Escrow Agent with respect to all matters pertinent hereto and Escrow
Agent shall have no implied duties or responsibilities read into this Agreement
against it. Escrow Agent shall not be bound by any modification of this
Agreement, unless the same is in writing and signed by the parties hereto, and,
if Escrow Agent's duties hereunder are affected, unless Escrow Agent shall have
given its prior written consent thereto.
(ii) In the event that the Escrow Agent shall be uncertain as
to the Escrow Agent's duties hereunder, or shall receive instructions from the
parties which, in the Escrow Agent's opinion, are in conflict with any of the
provisions hereof, the Escrow Agent shall have the right, upon written notice to
the parties, but not the obligation, to refrain from taking any action, other
than to continue to hold in escrow, until otherwise directed by a final Court
Order or by a joint authorization. Escrow Agent shall not be obligated to, but
may, institute legal proceedings of any kind, including, but not limited to, a
legal proceeding or action in a court of competent jurisdiction to determine
Escrow Agent's obligations hereunder; provided that Escrow Agent shall give at
least five (5) days' written notice to the parties prior to instituting any
such proceeding, and shall refrain from initiating such action if it receives a
joint authorization from the parties to the contrary within such 5-day period.
(iii) The parties hereto acknowledge and agree that Escrow
Agent shall be reimbursed in equal amounts by the parties all reasonable
expenses, disbursements and advances actually incurred or made by Escrow Agent,
to the extent necessary, in connection with the performance of its duties under
this Agreement (including reasonable fees, disbursements and expenses of its
attorneys and other professionals employed by it at customary billing rates).
(iv) The parties hereto shall and hereby do, severally,
indemnify, defend and hold harmless Escrow Agent from and against all losses,
claims, liabilities, actions, proceedings, settlements, judgments, fees,
expenses and costs, including but not limited to, reasonable attorneys' fees and
disbursements, arising out of, and/or incurred in connection with, the
Agreement, except with respect to those arising with respect to claims based on
Escrow Agent's gross negligence or willful misconduct that are successfully
asserted against Escrow Agent.
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