[DESCRIPTION] EXHIBIT 10(h)
EXECUTION COPY
OFFICE SPACE LEASE
between
NY BROAD HOLDINGS, INC.,
Landlord
- and -
XXXXXXXXXX & CO. INC.
Tenant
of
15th and 16th Floors
in
COMMERCIAL UNIT C
THE 125 BROAD CONDOMINIUM
000 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx
Dated: As of May 27, 1997
OFFICE SPACE LEASE
THIS OFFICE SPACE LEASE (this "Lease") is made as of May 27,
1997 between NY BROAD HOLDINGS, INC., a Delaware
corporation, as landlord ("Landlord"), having an office for the conduct
of business at the Address of Landlord set forth in Section 16.13 and
XXXXXXXXXX & CO. INC., a New York corporation, as tenant
("Tenant"), having an office for the conduct of business at the Address
of Tenant set forth in Section 16.13.
W I T N E S S E T H
The parties hereto, for themselves, their successors and permitted
assigns, hereby covenant as follows:
ARTICLE I
BASIC LEASE PROVISIONS
SECTION I.1 Basic Lease Provisions.
ALLOWANCE: An amount of $40.00 per square foot
of Premises Area which totals $2,760,320.00, to be paid or credited in
accordance with Paragraph 6 of Exhibit D.
PREMISES: The entire rentable area of the 15th and
16th floors of the Building shown cross-hatched on the floor plan
attached hereto as Exhibit A.
PREMISES AREA: 69,008 rentable square feet, which is
the total rentable area of the Premises as of the date of this Lease. The
Premises Area may be reduced or expanded during the Term as
provided in Article X, Article XIV, Article XVIII or Article XIX of
this Lease. References in this Lease to the Premises Area shall mean
the Premises Area existing at the time of the particular reference.
TERM: Approximately 16 years, beginning on the
Commencement Date and ending on the Expiration Date, subject to the
terms of Article XX of this Lease.
COMMENCEMENT
DATE: The Landlord's Delivery Date (as defined in
Exhibit B).
EXPIRATION
DATE: The first to occur of (a) September 30, 2013,
unless extended as provided in Article XVII, and (b) such earlier date
upon which the Term may expire or be terminated pursuant to this
Lease or pursuant to Law.
BASE RENT:
From To (and including) Monthly Amount Base
Rent per
square foot
per annum
Commencement Date September 30, 2003 $129,390.00 $22.50
October 1, 2003 September 30, 2008 $138,016.00 $24.00
October 1, 2008 September 30, 2013 $152,392.67 $26.50
The Base Rent during the Renewal Term, if the Renewal Option is
exercised, shall be determined pursuant to Article XVII. The Base
Rent for the First Expansion Space and the Second Expansion Space, if
the First Expansion Option or the Second Expansion Option is
exercised, shall be determined pursuant to Article XVIII and Article
XIX, respectively.
BASE RENT
COMMENCEMENT DATE: October 8, 1998, unless extended as provided
in Section 3.7.
PERMITTED USE: General office use (including use of the
Premises as a securities brokerage firm) and related uses incident
thereto, but in no event for a Prohibited Use.
TENANT'S SHARE: 33.66%, subject to adjustment as
provided in Article X, Article XIV, Article XVIII, and Article XIX of
this Lease.
SECURITY DEPOSIT: None, except in connection with
Article XXIV and Paragraph 6.3 of Exhibit D.
SECTION I.2 Other Definitions. All capitalized terms used in this
Lease shall have the meanings given to them in either Section 1.1 or
Exhibit B attached hereto.
ARTICLE II
PREMISES AND TERM
SECTION II.1 Lease of Premises. Landlord hereby leases to Tenant,
and Tenant hereby hires from Landlord, the Premises for the duration
of the Term, for the rents herein reserved, and upon and subject to the
covenants, terms and conditions of this Lease. Landlord and Tenant
hereby conclusively agree as to the Premises Area set forth in Section
1.1 and the Unit Area set forth in Exhibit B, notwithstanding any
subsequent remeasurements.
SECTION II.2 Term; Commencement Date. The Term shall
commence on the Commencement Date and shall end at noon on the
Expiration Date.
SECTION II.3 Tenant's Waiver. Tenant expressly waives (a) any
right to rescind this Lease under Section 223-a of the Real Property
Law of the State of New York (or any other law of like import, now or
hereafter in force) and (b) the right to recover any damages resulting
from Landlord's failure to deliver possession of the Premises on any
fixed date for any reason whatsoever. No such failure shall (i) affect
the validity of this Lease or the obligations of Tenant hereunder, (ii) be
construed to extend the Term or (iii) give rise to any claim by Tenant
for damages or for rescission of this Lease; provided, however, that the
rent payable hereunder shall be abated in accordance with Section 3.7
below.
SECTION II.4 Delivery of Premises. Tenant agrees that (a) Tenant is
leasing the Premises in "AS IS" condition, subject to the following
clause, (b) Landlord shall have no obligation to perform any work or to
supply any materials whatsoever to prepare the Premises for Tenant's
occupancy (including, without limitation, the making of any
improvements or repairs to the Premises or any other portion of the
Unit) other than Landlord's Work which shall be performed in
accordance with and subject to the provisions of the Work Letter
attached hereto as Exhibit D (the "Work Letter"), and (c) except as
disclosed in Exhibit N attached hereto, Landlord and Landlord's agents
have made no representations, warranties or promises whatsoever with
respect to the Premises, the Unit, the Building, the land underlying the
Building, the rents, leases, Taxes, Operating Expenses or any other
matter or thing, except as herein expressly set forth, and no rights,
easements or licenses are acquired by Tenant by implication or
otherwise except as expressly set forth in this Lease. Tenant represents
and warrants that it is familiar with the Premises, the Common
Elements of the Building and the utilities and other services servicing
the Building and has inspected same. The taking of occupancy of the
whole or any part of the Premises by Tenant shall be conclusive
evidence, as against Tenant, that, subject to Landlord's completion of
the punch list items to be completed by Landlord in accordance with
Paragraph 10 of Exhibit D, (i) the Premises were substantially as shown
on Exhibit A, (ii) Tenant accepts possession of the same, (iii) the
Premises and the Building were in good and satisfactory condition at
the time such occupancy was so taken and (iv) Landlord's Work has
been performed in accordance with Exhibit D.
ARTICLE III
RENTS
SECTION III.1 Base Rent. Subject to Section 3.7, beginning on the
Commencement Date and continuing thereafter during the Term,
Tenant shall pay to Landlord as Base Rent for the Premises the
amounts stated in Section 1.1 under the definition of "Base Rent".
Tenant shall pay the Base Rent in equal monthly installments in
advance on the first day of each calendar month of the Term.
SECTION III.2 Additional Rent. Subject to Section 3.7, beginning on
the Commencement Date, Tenant shall pay to Landlord as additional
rent ("Additional Rent") all sums payable by Tenant under the
provisions of this Lease other than Base Rent including, without
limitation, all interest and penalties that may accrue thereon in the event
of Tenant's failure to pay such amounts when due, and all damages,
costs and expenses which Landlord may incur by reason of any default
of Tenant or failure on Tenant's part to comply with the terms of this
Lease, all of which shall be due and payable within 10 days of demand
therefor unless another time is expressly provided for in this Lease.
Landlord shall have the same remedies for failure to pay Additional
Rent as for non-payment of Base Rent.
SECTION III.3 Payment of Base Rent and Additional Rent. Tenant
shall pay the Base Rent and Additional Rent (collectively, the "Rents")
when due, without notice or demand, and without any abatement,
deduction or set-off, except for any notices, demands, abatements,
deductions or set-offs expressly provided for elsewhere in this Lease.
Tenant shall pay the Rents to Landlord in lawful money of the United
States by check or other method of payment so that in any case the
funds are "available" on the due date for payment thereof at the
Address of Landlord or such other place in The City of New York as
Landlord may designate by notice to Tenant.
SECTION III.4 Rent for a Partial Month. The Rent for any portion of
a calendar month included in the Term shall be prorated in the ratio that
the number of days in such portion bears to the actual number of days
in such month.
SECTION III.5 Interest. If any payment of Rent is not paid on or
before the due date thereof, interest shall commence to accrue on such
payment at a rate per annum (the "Interest Rate") equal to the lesser of
(a) the LIBOR Rate plus 3% or (b) the maximum rate of interest
chargeable under Law, from and after the due date thereof without
reference to any grace periods, until fully paid.
SECTION III.6 Government Rent Restrictions. If the amount of the
Rents payable under this Lease exceeds that allowed by the terms of
any valid government restriction that limits the amount of rent or other
charges that a commercial lessor may charge or collect, the amount of
Rents payable under this Lease shall be the maximum permitted by
such restriction for the period of time during which such restriction
remains in effect, but in no event shall the amount of Rents payable to
the Landlord exceed the amount of Rents that would otherwise have
been payable to Landlord under this Lease absent said government rent
restriction. All increases in Rents provided for in this Lease shall,
however, to the extent permitted by Law, be calculated upon the
amount of the Rents that would have been payable in the absence of
such restriction, and, effective as of the expiration of such restriction
(but only if such restriction expires on or prior to September 30, 2013
or, September 30, 2018, if this Lease is extended pursuant to Article
XVII), the Rents payable hereunder shall be increased to the amount
that would have prevailed had such restriction never been in effect.
Moreover, to the fullest extent permitted by Law, on the first due date
for an installment of Base Rent following expiration of such restriction,
Tenant shall pay to Landlord, as Additional Rent, an amount equal to
the difference between the amount of Rents that Tenant would have
paid if such restriction had not been in force and the amount of Rents
actually paid by Tenant during the period in which such restriction
remained in effect. In the event that such Additional Rent (computed
in accordance with the preceding sentence) exceeds an amount equal to
the product of (A) four (4) multiplied by (B) the then monthly amount
of Base Rent, Tenant shall be entitled to pay to Landlord any such
Additional Rent due under this Section 3.6 only over a twelve (12)
month period.
SECTION III.7 Free Rent Period. (a) Notwithstanding the provisions
of Section 3.1 hereof, the Base Rent and any Additional Rent due as a
result of Taxes, Operating Expenses and the Storage Premises shall be
fully abated for the period from the Commencement Date through the
Base Rent Commencement Date (the "Free Rent Period"); provided
that, notwithstanding the foregoing, if at any time from the
Commencement Date through and including the five (5) year
anniversary of the Base Rent Commencement Date a Material
Recapture Event shall occur (beyond the expiration of any applicable
grace, notice and cure periods) then the Rent so abated shall be due
and payable to Landlord within 10 Business Days of Landlord's notice
thereof; provided that, in the case of a Material Recapture Event
relating to the non-payment of Rent, Landlord provides Tenant with
written notice and five (5) Business Days opportunity to cure such
event. As used herein, "Material Recapture Event" shall mean defaults
pursuant to Sections 15.1.4, 15.1.5, 15.1.6, 15.1.7 and 15.1.8 or if a
default under Section 15.1.1 has occurred and is continuing for three
months or more and such default remains uncured as of the date
Landlord intends to recapture such free rent.
(b) The Base Rent Commencement Date shall be extended one (1) day
for each day from May 13, 1997 until the Landlord's Delivery Date has
occurred and an additional day (for a total of two (2) days) for each
day from August 15, 1997 until the Landlord's Delivery Date has
occurred.
(c) The Base Rent Commencement Date shall also be extended in
accordance with Section 16.16(c), if applicable.
ARTICLE IV
TAX AND OPERATING EXPENSE ADJUSTMENTS
SECTION IV.1 Tax and Operating Expense Definitions. For the
purposes of this Lease, the following terms shall have the indicated
meanings:
IV.1.1 "Tax Year" means any period of 12 consecutive calendar
months, commencing July 1, all or any part of which falls within the
Term.
IV.1.2 "Taxes" for any Tax Year, means the aggregate amount of all
(a) real property taxes imposed by The City of New York, and each
and every installment thereof, which shall during such Tax Year be
levied, assessed, imposed, or become due and payable, or a lien upon,
or arise in connection with, the ownership, use, occupancy or
possession of the Taxable Property; (b) general or specific assessments
assessed against the Taxable Property; (c) other taxes, governmental
impositions, duties, charges and levies of every kind, character and
nature whatsoever, extraordinary and ordinary, foreseen and
unforeseen, and each and every installment thereof, which shall during
such Tax Year be levied, assessed, imposed, or become due and
payable, or a lien upon, or arise in connection with, the ownership, use,
occupancy or possession of the Taxable Property; (d) any reasonable
expenses incurred by Landlord, including in each case, attorneys' fees
and disbursements, payments to appraisers and fees to experts and
other witnesses, in contesting any of the items referred to in clauses (a),
(b) and (c) above or in contesting the assessed valuation of all or any
part of the Taxable Property in respect of such Tax Year, regardless of
when such expenses are actually incurred; and (e) Landlord's Share of
any fee, tax or charge imposed for such Tax Year by any governmental
authority for any vaults, vault space or other properties within or
outside the boundaries of the Land; provided, however, that (A) Base
Taxes and Taxes for each Tax Year thereafter shall be adjusted, if
necessary, to reflect 95% occupancy in the Unit and Building,
respectively and (B) Taxes shall exclude the following: (i) all penalties,
fines, late payment charges and interest thereon (except interest on
Taxes which may by law be paid in installments); (ii) any water rates
and charges, sewer rental and utility taxes to the extent any of the same
are included in Operating Expenses; (iii) any inheritance, estate,
succession, transfer, gains, mortgage recording, gift, franchise,
corporation, income or profit tax or capital levy that is imposed upon
Landlord so long as none of the foregoing exclusions are substitutes for
real property taxes otherwise imposed in connection with the
ownership, use, occupancy or possession of the Taxable Property; and
(iv) the effect of any real estate tax exemption, abatement or deferral
program which may apply to the Unit or the Building.
Notwithstanding the foregoing, if, at any time during the Term, the
methods of taxation prevailing on the date hereof shall be altered so
that in lieu of, in addition to, or as a substitute for, the whole or any
part of the Taxes now levied, assessed or imposed on real estate or
upon Landlord with respect to the Taxable Property, there shall be
levied, assessed or imposed any other tax, fee, charge, imposition,
license fee or assessment, however denominated, including any tax,
assessment, fee, imposition, charge or levy (A) based upon, allocable to
or measured by the area of the Premises, the Unit, the Taxable
Property or any portion thereof, any rents or other income generated
thereby or received in connection therewith (whether gross or net or
otherwise or whether in addition to or in lieu of other Taxes) or
otherwise based upon the possession, leasing, operation, management,
maintenance, alteration, repair, use or occupancy of the Premises, the
Unit, the Taxable Property, or any portion thereof, (B) related to the
provision of governmental or quasi-governmental services such as fire
protection, street, sidewalk and road maintenance, conservation,
environmental protection, refuse removal or any other service formerly
provided for no charge or for a lesser or different charge, including
assessments, contributions or the like under governmental or private
cost-sharing arrangements or agreements for the purpose or
augmenting or improving the quality of such services, and (C) related
to the pursuit of community, neighborhood or local goals such as
educational, traffic, transit, arts, environmental, housing, welfare or
similar objectives.
IV.1.3 "Base Taxes" means, subject to the provisions of Section 4.1.9,
Section 4.2, and Section 17.1, Taxes for the period commencing on
July 1, 1997 and ending on June 30, 1998 (the "Base Tax Year").
IV.1.4 "Tax Statement" means a statement which Landlord may
render to Tenant at any time during or after the Term showing the
Tenant's Tax Payment for any Tax Year after the Base Tax Year.
IV.1.5 "Taxable Property" means the Unit, the Common Elements
appurtenant thereto (but only to the extent of the Landlord's Share with
respect thereto), any other interest of Landlord as owner of the Unit in
the Building and the Land, and all rights, privileges and interests
appurtenant thereto.
IV.1.6 "Lease Year" means any calendar year all or any part of which
falls within the Term; the first Lease Year under this Lease shall
commence on the Commencement Date and shall end on the 31st day
of December following the Commencement Date.
IV.1.7 "Operating Expenses" for each Lease Year, means all costs,
expenses and disbursements of every kind and nature actually paid or
incurred during such Lease Year by or on behalf of Landlord (directly
or by way of reimbursement by Landlord to its agents or contractors)
with respect to the ownership, operation, repair, replacement, cleaning,
safety, maintenance, management and security of the Unit and, to the
extent such costs, expenses and disbursements are allocable to
Landlord and actually paid or payable by Landlord, of the Building and
the Common Elements, including, without limitation, the following
categories of expense; provided that Operating Expenses shall not
include (i) any reserves for any such costs, expenses or disbursements,
(ii) any such costs, expenses and disbursements incurred by and not
actually paid by or on behalf of Landlord (it being understood and
agreed that costs and expenses properly billed to Landlord as Common
Expenses by the Condominium Board and otherwise properly
includable in Operating Expenses may be included in Operating
Expenses when billed) and (iii) any such costs, expenses and
disbursements that are specifically excluded below:
(a) salaries, wages, fringe benefits of every kind and nature,
bonuses and the cost of any hospitalization, medical, surgical, union
and general welfare, pension, retirement or life insurance plans,
disability or other benefits imposed by law or otherwise with respect to
employees and social security, unemployment and other payroll taxes
paid or incurred by Landlord (directly or by way of reimbursement by
Landlord to its agents or contractors) relating to the employees of
Landlord, the Board of Managers or their respective agents or
contractors (but excluding therefrom executives and officers above the
level of Building Manager) engaged in the operation, repair,
replacement, cleaning, safety, maintenance, management or security of
the Unit or the Common Elements (to the extent allocable to
Landlord); provided that if any such employees of Landlord or the
Board of Managers (or their agents or contractors) provide services for
more than one building or for property other than the Building, then a
prorated portion of the foregoing costs shall be included in Operating
Expenses, based on the portion of their working time devoted to the
Building, the Unit or the Common Elements, as the case may be;
(b) the cost of electricity (except to the extent specifically excluded
by the last paragraph of Section 4.1.7), gas, steam or other fuel;
operation of elevators and security systems; heating, cooling, air
conditioning and ventilating; hot and cold water, sewer and other
utilities; utility taxes, water rates and charges and sewer rental;
(c) Common Expenses and Unit Expenses for the cost of cleaning
in accordance with Building Standards and Exhibit G (including
windows), cleaning goods and supplies, painting, janitorial, trash
removal, security and other services and replacement of tubes, bulbs,
and lamps required for building standard lighting located in the Unit
and the Common Elements (to the extent allocable to Landlord);
(d) the cost of all insurance, including Worker's Compensation,
property, casualty, liability and fidelity insurance and the fees and
charges of insurance consultants;
(e) the cost of repairs to, and maintenance of, the Unit and the
Common Elements (to the extent allocable to Landlord) and their
respective systems;
(f) Common Expenses for the cost of landscaping Common
Elements (to the extent allocable to Landlord);
(g) the cost of (including interest charges paid by, or allocable to,
Landlord), or rental charges for, machinery, equipment, tools,
maintenance facilities or systems used in the operation, repair, cleaning,
safety, maintenance, management or security of the Unit or the
Common Elements (to the extent allocable to Landlord);
(h) Common Expenses for the cost of uniforms and dry cleaning
for on-site employees;
(i) Common Expenses for management fees for the Building (to
the extent allocable to Landlord), or if no management fee is being
charged for the Building, an imputed management fee not in excess of
the amount that would be paid to a property manager for managing a
Comparable Building;
(j) Common Expenses for fees and charges payable under service
agreements on equipment and other service contracts;
(k) telephone, telegraph, telecopy (or other telecommunication)
costs incurred by Landlord or its agents;
(l) legal, accounting and professional fees and disbursements
incurred in connection with the operation, repair, cleaning,
maintenance, management and security of the Unit and Common
Elements;
(m) annual amortization of costs on a straight-line basis over a
depreciable life selected by Landlord consistent with GAAP, for any
equipment, device or capital improvement installed by Landlord or the
Board of Managers in or to the Unit, the Building or the Common
Elements or the respective facilities and systems of each that are
intended to reduce Operating Expenses, together with the actual costs
of financing or leasing the same, provided that, notwithstanding the
foregoing, the amount included in Operating Expenses for any Lease
Year on account of any capital expenditure intended to reduce
Operating Expenses shall not exceed the amount by which the
Operating Expenses for such Lease Year are actually reduced as a
result of such capital expenditure;
(n) fees for and costs of licenses, permits and inspections;
(o) [Intentionally Deleted.]
(p) costs of contesting the validity or applicability of any Law if a
successful contest is likely to reduce Operating Expenses;
(q) those taxes, duties, charges, levies and assessments that are
expended as a part of the Unit's operation, repair, cleaning, safety,
maintenance, management or security, but that are not included within
Taxes, such as sales, use and utility taxes, it being understood that if
such items are expressly excluded from determination of Taxes in
Section 4.1.2 (such as, by way of illustration only, the 95% occupancy
adjustment and the effect of any abatement or deferral program), such
items shall also be excluded from Operating Expenses;
(r) [Intentionally Deleted];
(s) all charges, taxes, surcharges, assessments or penalties imposed
by any government agency or public utility as a means of conserving or
controlling the consumption of water, gas, electricity, energy sources
or products, natural resources, or other products or services; and
(t) common charges and other costs and expenses imposed on or
required to be performed by Landlord by the Board of Managers or
otherwise under the Condominium Documents in connection with the
operation, repair, cleaning, safety, maintenance, management or
security of the Common Elements, the Unit, the Premises or the
Building, including, without limitation, Common Charges, but
excluding therefrom any amounts allocable to payments of ground rent
pursuant to the Ground Lease. To the extent that any such common
charges or other costs and expenses included in Operating Expenses by
virtue of this clause (t) relate (x) to Taxes, then such common charges,
costs and expenses shall be subject to the same adjustments as Taxes
under Section 4.1.2, or (y) to items which are excluded pursuant to a
limitation or exception in clauses (a) through (s) above or by the
following paragraph, then such common charges, costs and expenses
shall be excluded from Operating Expenses but only to the extent of
such exclusion, limitation or exception.
Notwithstanding the foregoing, the following costs and expenses shall
be excluded from Operating Expenses: (i) expenses relating to leasing
space in the Unit or Building (including tenant improvements, lease
takeover costs and other tenant inducements, leasing and brokerage
commissions and advertising expenses); (ii) legal, accounting and other
professional fees and disbursements incurred for collection of tenant
accounts or negotiation of leases, or relating to disputes between
Landlord and tenants and occupants of the Unit or relating to the
financing or sale of the Unit (or any portion thereof) or to any other
excluded items; (iii) the cost of electricity furnished to any leasable
space in the Building (whether for operation, alterations or otherwise);
(iv) capital expenditures not specifically included in Section 4.1.7 (m)
and (t) above (it being understood and agreed that capital expenditures
included in Operating Expenses by virtue of Section 4.1.7(t) above
shall only be included to the extent such expenditures would otherwise
be included in Section 4.1.7 (m) above); (v) Taxes; (vi) expenses which
would be included in Operating Expenses but which were paid with the
proceeds of insurance or payments from tenants or Unit Owners; (vii)
the cost of repairs and replacements incurred by reason of fire or other
casualty or condemnation; (viii) payments of principal and interest on
any mortgages upon the Unit, the Land or the Building and other costs
arising from such mortgage; (ix) any payments or costs of discharging
any obligations pursuant to any ground lease covering the Unit, the
Land or the Building and any legal, accounting or other professional
fees relating to the foregoing; (x) the costs of gas, steam or other fuel;
operation of elevators and security systems; heating, cooling, air
conditioning and ventilating; chilled water, hot and cold water, sewer
and other utilities (including the cost of any electricity charges therefor)
or any other service or facility, or level or amount thereof, provided to
any other tenant or occupant in the Building which either (A) is not
supplied or furnished to Tenant in comparable amounts or (B) is
supplied or furnished to Tenant pursuant to the terms of this Lease
with separate or additional charge; (xi) the cost of any work performed
for any other tenant or occupant in the Building which either (A) is not
performed for Tenant or (B) is performed for Tenant pursuant to the
terms of this Lease with separate or additional charge; (xii) payments
made by Landlord to a company or other entity affiliated with Landlord
for goods and services to the extent that such payments exceed the
amounts that would have been paid to independent third parties for
goods and services of like kind; (xiii) the cost of any Landlord's Work,
(xiv) the cost of the purchase of the fee interest in the Land or
Building; and (xv) any expenses and costs incurred by Landlord as a
result of complying, or in order to comply, with Laws which are the
responsibility of Landlord hereunder.
IV.1.8 "Base Operating Expenses" means, subject to the provisions of
Section 4.1.9, the Operating Expenses for the period commencing on
January 1, 1998 and ending on December 31, 1998 (the "Base Year").
IV.1.9 Additional Adjustments to Defined Terms.
(a) If, during all or part of any Lease Year (including the Base
Year), (i) less than 95% of the leasable space of the Unit (and/or where
appropriate as reasonably determined by Landlord, the Building) is
occupied by tenants or occupants and/or (ii) a tenant or occupant of
any leasable space of the Unit or the Building, in lieu of having
Landlord or the Board of Managers perform any work or service, the
cost of which, if performed by Landlord or the Board of Managers,
would have been includable in Operating Expenses, itself performs the
same or causes the same to be performed, then the Operating Expenses
for such Lease Year shall be increased to reflect the Operating
Expenses that would have been payable had the Unit or the Building
been 95% occupied throughout such Lease Year or had Landlord or
the Board of Managers performed such work or services, as the case
may be.
(b) When calculating the Operating Expenses or the Base
Operating Expenses, as the case may be (or, to the extent applicable,
the Taxes or the Base Taxes, as the case may be), such Operating
Expenses or Base Operating Expenses (or Taxes or Base Taxes) shall
not include any Operating Expenses or Base Operating Expenses, as
the case may be (or Taxes or Base Taxes, as the case may be)
otherwise attributable to an unusual or extraordinary event which is
expected to have a disproportionate impact on such Year or Base
Year, (or Tax Year or Base Tax Year), such as, by way of illustration
only, special Operating Expenses due to strikes, boycotts or
embargoes, or special Taxes due to one-time special assessments or
fees.
(c) If, at any time during the Term, a separate tax lot for the Unit
shall cease to exist, "Taxes" shall include an amount equal to
Landlord's Percentage of the aggregate amount of all taxes,
assessments, impositions, charges, duties, levies, fees and similar
amounts which, when applied to the Taxable Property under Section
4.1.2, would constitute "Taxes", which are levied, assessed, or imposed
upon or in connection with the ownership, use, occupancy, value,
rents, income and/or possession of the Building as a whole, and all
properties, easements, rights and privileges appurtenant thereto. As
used in the preceding sentence, "Landlord's Percentage" means
Landlord's share of such Taxes imposed on the Building as a whole
based not upon Landlord's pro rata share of leasable space in the
Building but upon the economic value of such space relative to the
economic value of the total leasable space in the Building.
SECTION IV.2 Payment of Tenant's Share of Taxes. Tenant shall
pay to Landlord as Additional Rent for each full or partial Tax Year
following the Base Tax Year, all or any portion of which shall be within
the Term, an amount ("Tenant's Tax Payment") equal to Tenant's Share
of the amount by which the Taxes payable for such Tax Year exceed
the Base Taxes. In the event that only a portion of any Tax Year shall
be within the Term, Tenant's Tax Payment, if any, for such Tax Year
shall be prorated, based upon the number of calendar days of such Tax
Year within the Term and a 365 day year.
IV.2.1 The Tax Statement; Adjustments and Revisions.
(a) At any time after the Base Tax Year, if a Tenant's Tax Payment
is owed by Tenant for any particular Tax Year following the Base Tax
Year, Landlord shall deliver to Tenant a Tax Statement for such Tax
Year. The Taxes in such Tax Statement shall be computed and payable
on the basis of the assessed valuation (and the Taxes) for the Taxable
Property in effect at the time the Tax Statement is delivered to Tenant,
regardless of any then pending proceeding for reduction of such
assessed valuation.
(b) At any time after the Base Tax Year, Landlord shall deliver to
Tenant a revised Tax Statement for any particular Tax Year following
the Base Tax Year, if (i) the Base Taxes or any subsequent Taxes have
been reduced, (ii) any additional Taxes are imposed or assessed with
respect to such Tax Year or (iii) the previous Tax Statement for such
Tax Year was in error in any respect. Any additional Tenant's Tax
Payment for a particular Tax Year indicated on any such revised Tax
Statement is sometimes referred to herein as an "Additional Tax
Payment." Neither Landlord's failure to deliver to Tenant a Tax
Statement or a revised Tax Statement for any particular Tax Year
during such Tax Year, or within any period whatsoever, nor any other
failure of Landlord to make demand for any Taxes payable by Tenant
hereunder (including, without limitation, any Additional Tax Payment)
shall in any way prejudice Landlord's right to deliver a Tax Statement
or any revised Tax Statement (on one or more occasions) with respect
to such Tax Year (and to make demand for any Taxes indicated as
payable therein) during any subsequent period and shall not eliminate
or reduce in any way Tenant's obligation to pay Tenant's Tax Payment
for such Tax Year or act as a waiver of any kind; provided such Tax
Statement or revised Tax Statement, as the case may be, is delivered
within two (2) years from the end of such particular Tax Year.
(c) Only Landlord shall be eligible to institute tax reduction or
other proceedings to contest or reduce the assessed valuation of (or all
or any portion of the Taxes applicable to) the Taxable Property. Upon
the written request of Tenant, Landlord shall institute and prosecute tax
reduction or other proceedings to contest or reduce the assessed
valuation of (or all or any portion of the Taxes applicable to) the
Taxable Property unless Landlord has determined, acting reasonably
and good faith, that any such proceeding is not permitted or would not
result in a reduction, or would result in an increase, in Taxes. In the
event Landlord receives a refund of Taxes attributable to a Tax Year
during the Term (excluding the Base Tax Year) in which Tenant made
a Tenant's Tax Payment, Tenant shall receive a credit equal to the
lesser of (i) Tenant's Tax Payment for such Tax Year and (ii) Tenant's
Share of such refund of Taxes, which credit shall be reflected on a
revised Tax Statement as set forth in Section 4.2.1(b)(i) and shall be
reduced by any expenses actually incurred in obtaining the same to the
extent such expenses were not previously included in the definition of
Taxes set forth in Section 4.1.2(d).
IV.2.2 Payment by Tenant.
(a) Tenant's Tax Payment for each Tax Year following the Base
Tax Year (as reflected on the latest Tax Statement or revised Tax
Statement received by Tenant) shall be payable in two equal
installments, with the first such installment due and payable on the June
1 immediately preceding the commencement of such Tax Year and the
second such installment due and payable on the December 1
immediately preceding the commencement of the second half of such
Tax Year; provided, however, that in the event Tenant receives for the
first time a Tax Statement, which indicates a particular Tenant's Tax
Payment is due, less than 10 days prior to the date such payment would
otherwise be due pursuant to the provisions of this Section 4.2.2(a),
such payment shall not be due and payable by Tenant until the 10th day
following receipt of such Tax Statement.
(b) In the event that following the date or dates that the Tenant's
Tax Payment installments payable for a particular Tax Year pursuant to
Section 4.2.2(a) are due, Landlord delivers to Tenant a revised Tax
Statement pursuant to Section 4.2.1 indicating that an Additional Tax
Payment with respect to such Tax Year is payable by Tenant, such
Additional Tax Payment shall be due and payable 20 days following
receipt by Tenant of such revised Tax Statement.
SECTION IV.3 Payment of Tenant's Share of Operating Expenses.
Tenant shall pay to Landlord as Additional Rent for each Lease Year
following the Base Year an amount ("Tenant's Operating Payment")
equal to Tenant's Share of the amount by which Operating Expenses
for such Lease Year exceed Base Operating Expenses.
IV.3.1 Estimated Operating Statement. At the election of Landlord,
either prior to or after the commencement of each Lease Year
following the Base Year, Landlord may submit to Tenant a statement
(the "Estimated Operating Statement") setting forth Landlord's
estimate of Operating Expenses for such Lease Year and Tenant's
Operating Payment based on such estimate; provided that, upon
Tenant's request therefor, Landlord shall deliver to Tenant the detailed
budgets it receives from the Board of Managers relating to the Unit
Expenses and the Common Charges, and in the event that the
aggregate amount of Operating Expenses described in such Estimated
Operating Statement is greater than one hundred ten percent (110%) of
the Operating Expenses for the previous Lease Year, then Landlord
shall use all reasonable efforts to include in the Estimated Operating
Statement a detailed description of the calculations used to derive such
Estimated Operating Statement, but only to the extent that such
information is reasonably available to Landlord after reasonable efforts
to obtain such information (it being understood that Landlord's inability
or failure to deliver such detailed descriptions shall in no way affect
Tenant's obligations to pay any amounts otherwise due hereunder). In
addition, if, during any Lease Year following the Base Year, it shall
appear to Landlord that the last-issued Estimated Operating Statement
for such Lease Year is or will become inaccurate, Landlord shall issue a
revised Estimated Operating Statement.
IV.3.2 Estimated Statement Payments. On the first day of the month
following Tenant's receipt of an Estimated Operating Statement,
Tenant shall pay to Landlord an amount equal to (a) the product of (i)
one-twelfth (1/12th) of Tenant's Operating Payment based on such
Estimated Operating Statement multiplied by (ii) the number of months
(and any fraction thereof), to and including the then current month, that
have elapsed or commenced since the commencement of such Lease
Year less (b) the aggregate of any payments made on account of
Additional Rent in respect of Operating Expenses for such Lease Year
pursuant to this Section 4.3. On the first day of each month thereafter
until rendition of the next succeeding Estimated Operating Statement,
Tenant shall pay to Landlord an amount equal to one-twelfth (1/12th)
of Tenant's Operating Payment based on the most recent Estimated
Operating Statement; provided, however, that if a new Estimated
Operating Statement is issued for such Lease Year, the monthly
amount shall be changed as provided in this Section 4.3.2.
IV.3.3 Actual Operating Statement; Reconciliation; Subsequent
Revisions.
(a) Subject to the provisions of this Section 4.3.3, on or prior to
the October 1 next following the end of any Lease Year following the
Base Year, Landlord shall submit to Tenant a statement (the
"Operating Statement") setting forth (i) a reasonably detailed statement
of the actual Operating Expenses for such Lease Year, (ii) the excess of
such Operating Expenses over the Base Operating Expenses, (iii) the
aggregate payment made by Tenant in respect of Tenant's Operating
Payment pursuant to this Section 4.3 or otherwise, and (iv) the amount
of any overpayment or underpayment. Tenant shall pay the amount of
any underpayment to Landlord within 20 days after receipt of the
Operating Statement. Landlord shall pay the amount of any
overpayment to Tenant in accordance with Section 4.5.
(b) Landlord shall deliver any Operating Statement or any revision
thereto at any time during any Lease Year following the Base Year, or
during any subsequent period for any reason, including, without
limitation, to correct any inaccuracy of any Operating Statement, and
Landlord covenants and agrees to use all reasonable efforts to deliver a
revised Operating Statement as soon as practicable in order to correct
any material inaccuracy of any Operating Statement previously
delivered to Tenant, as determined by Landlord in the exercise of its
reasonable judgment. Tenant shall pay any amount indicated on any
revised Operating Statement as payable by Tenant within 20 days of
Landlord's delivery of any such revised Operating Statement.
Notwithstanding anything to the contrary contained in this Section
4.3.3, Landlord's failure to deliver to Tenant any such Operating
Statement, or revision thereto during any Lease Year or during any
subsequent period, shall not prejudice Landlord's right to do so during
any later period and shall not operate to eliminate, reduce or waive
Tenant's obligations to make any payment indicated thereon.
SECTION IV.4 Tenant's Objection to Tax Statement or Operating
Statement.
(a) Each Tax Statement and Operating Statement shall be
conclusively binding upon Tenant unless (i) Tenant shall send Landlord
a notice (an "Objection Notice") within 30 days of receipt thereof
stating that Tenant objects to Landlord's determination therein of
Tenant's Tax Payment or Tenant's Operating Payment, as the case may
be, which Objection Notice shall include a statement that Tenant
desires to audit the books and records of Landlord, and (ii) within 10
Business Days after completion of its audit (but in no event later than
the period permitted for such audits in Section 4.4(b)), Tenant shall
give Landlord a subsequent notice that it still disputes Landlord's
determination of such Tenant's Tax Payment or Tenant's Operating
Payment, as the case may be, specifying the reasons for such objection
with reference to the particular books and records of Landlord, the
particular respects in which such Tax Statement or Operating
Statement is claimed to be inaccurate and that it requests that such
dispute be determined by arbitration pursuant to Section 16.21 of this
Lease. No dispute by Tenant shall excuse or xxxxx Tenant's obligation
to make the payments required by this Article IV pending resolution of
Tenant's objection. With respect to the Operating Statement, it shall be
conclusively deemed acceptable to Tenant if it consists solely of
Tenant's Share of Common Charges allocable to the Unit under the
Declaration.
(b) For a period of 60 days commencing on the date of the
Objection Notice (it being understood and agreed that such 60 day
period shall be extended to 210 days if, as a result of Landlord's lack of
cooperation, Tenant reasonably needs such extra time to reasonably
complete its audit, and Tenant has been diligently pursuing such audit
during the initial 60 day period and thereafter during the subsequent
210 day period), Landlord shall afford Tenant or its representatives the
right (following, in each case, reasonable advance notice) on as many
occasions as shall be reasonably necessary to examine (and, at Tenant's
expense, make extracts from and copies of) at Landlord's business
office in the City of New York during normal business hours
Landlord's books and records relating to the Base Year and Base Tax
Year and the Lease Year or Tax Year in question. Tenant shall
maintain all information obtained in the course of such examination in
strict confidence. Such examination and audit shall be at Tenant's sole
cost and expense.
(c) If, after reviewing Landlord's books and records as provided in
Section 4.4(b), Tenant still disputes Landlord's determination of
Tenant's Tax Payment or Tenant's Operating Payment, and gives
Landlord notice thereof as provided in Section 4.4(a), such dispute
shall be determined by arbitration pursuant to Section 16.21. If
Tenant's Tax Payment for a Tax Year or Tenant's Operating Payment
for a Lease Year, as determined by such arbitration (or settlement), is
more or less than the amount thereof indicated in the Tax Statement or
the Operating Statement, as the case may be, Tenant shall pay to
Landlord any difference in Landlord's favor within 20 days, or
Landlord shall pay to Tenant any difference in Tenant's favor in
accordance with Section 4.5, as the case may be.
SECTION IV.5 Landlord Payments. Wherever in this Lease Landlord
is obligated to refund any excess payments of Additional Rent made to
Landlord by Tenant, upon Tenant's written request, Landlord shall pay
such excess directly to Tenant within 20 days of Tenant's demand
therefor; provided, however, that (a) if any Rents are due and owing to
Landlord under this Lease, Landlord may offset the amount of any
such Rents against such excess and (b) in the event Tenant's
overpayment of Additional Rent during any Lease Year exceeds 125%
of the actual amount of Additional Rent due as indicated in the
Operating Statement for such Lease Year, Landlord shall pay to
Tenant interest (at the Interest Rate) on such overpayment until
Landlord refunds such excess to Tenant.
ARTICLE V
USE AND COMPLIANCE WITH LAW
SECTION V.1 Use. Tenant shall use and occupy the Premises for the
Permitted Use and for no other purpose. Tenant shall not at any time
use or occupy or allow any Person to use or occupy the Premises, or
do or permit anything to be done or kept in or about the Premises, the
Unit, or the Building that constitutes a Prohibited Use. Tenant, at its
expense, shall procure and at all times comply with the terms and
conditions of any license or permit required for the conduct of the
Permitted Use in the Premises. Tenant shall pay to any taxing authority
any fee, tax or other charge levied or assessed by any governmental
authority in connection with Tenant's use and/or occupancy of the
Premises, including the New York City commercial occupancy tax.
SECTION V.2 Hazardous Materials. Neither Tenant nor any of its
officers, partners, employees, agents, subtenants, contractors or
invitees shall cause or permit any Hazardous Material (including
asbestos or asbestos containing materials) to be used, stored, released,
handled, produced or installed in, on or from the Premises or the
Building, other than customary amounts of office and cleaning supplies
for which no special governmental permit, approval or license is
required and only so long as the same are stored, used and disposed of
in strict compliance with all Laws.
SECTION V.3 Compliance with Law. Except to the extent the same
constitutes Landlord's Work, Tenant shall, at Tenant's expense, comply
with all Laws now or hereafter existing, whether or not such
compliance requires work which is structural or non-structural,
ordinary or extraordinary, foreseen or unforeseen, that impose any
obligation, order or duty on Landlord or Tenant, but only: (a) with
respect to Tenant's Work, any Improvement or Tenant's Property; or
(b) with respect to the Building or any part thereof (including the
Premises) if such obligation, order or duty arises from: (i) the particular
manner of conduct of Tenant's business or operation of its equipment
therein, but excluding any use of the Premises merely as general office
space and for the conduct of a securities brokerage business; (ii) any
cause or condition created by or at the instigation of Tenant, including,
without limitation, any Improvement or Alteration; (iii) the breach of
any of Tenant's obligations hereunder; or (iv) any Hazardous Material
brought into the Building by Tenant, any subtenant of Tenant or any of
their agents, contractors or invitees. Tenant shall promptly forward to
Landlord any notice it receives of the violation of any Law involving
the Premises. Tenant shall pay, within 20 days after demand therefor,
all the costs, expenses, fines, penalties and damages that may be
imposed upon Landlord by reason of or arising out of Tenant's failure
to comply with the provisions of this Section 5.3, including, without
limitation, all costs and expenses for Landlord to cure Tenant's failure
to comply hereunder as set forth in Section 15.5 below; it being agreed
that all such costs, expenses, fines, penalties and damages shall be
deemed Additional Rent due hereunder. Notwithstanding the
foregoing, Tenant shall not be obligated to comply with any Laws
which (i) relate to any Hazardous Materials (unless such Hazardous
Material has been installed or placed in the Premises or the Building by
Tenant or otherwise in violation of Section 5.2 above) or (ii) are of
building-wide application in office buildings in Manhattan, unless such
Law relates to Tenant's particular manner or conduct of use of the
Premises (other than the use of the Premises merely as general office
space and for the conduct of a securities brokerage business), and
Landlord agrees to comply with such Laws and any other Laws that
are not Tenant's responsibility pursuant to (a) or (b) above if the failure
to comply would interfere (beyond a de minimis effect) with Tenant's
right to occupy, or adversely affect (beyond a de minimis effect)
Tenant's use of, the Premises or its ability to perform Tenant's Work or
scheduled Alterations.
SECTION V.4 ADA Compliance. Except to the extent that the same
constitutes Landlord's Work, Tenant shall promptly comply with all
requirements relating to the Americans with Disabilities Act, 42 U.S.C.
12,101 et seq., and the regulations promulgated thereunder as in
effect from time to time ("ADA Requirements") with respect to the
Premises. Except to the extent such constitutes Landlord's Work,
Tenant shall have exclusive responsibility for compliance with ADA
Requirements pertaining to the interior of the Premises, including for
the design and construction of the access thereto and egress therefrom.
Landlord shall have responsibility for compliance with ADA
Requirements which affect the Unit other than the Premises, the
Common Elements of the Building, subject to Tenant's obligation to
pay for its share of the expense of such compliance pursuant to Section
4.3 of this Lease. Tenant shall comply with any reasonable plan
adopted by Landlord which is designed to comply with ADA
Requirements.
SECTION V.5 Rules and Regulations. Tenant shall observe and
comply with the Building Standards and the Building Rules and
Regulations and the Landlord's Building Rules and Regulations as set
forth in Exhibit E and Exhibit F, respectively, attached hereto
(collectively, the "Rules and Regulations"), and any and all revisions,
supplements, amendments, modifications or additions thereto as may
be adopted from time to time by the Board of Managers and/or the
Landlord, as the case may be. Neither Landlord nor the Board of
Managers shall be responsible or liable to Tenant for violations of the
Rules and Regulations by other tenants and occupants of the Unit or
the Building. Landlord shall use all reasonable efforts to enforce the
Rules and Regulations against occupants of the Unit in a non-
discriminatory manner.
ARTICLE VI
SERVICES AND UTILITIES
SECTION VI.1 Electricity.
VI.1.1 Submetering. On and after the Commencement Date, Landlord
shall supply electricity to the Premises on a submetered basis in
accordance with this Section 6.1.1. Tenant shall purchase from
Landlord, at Landlord's actual out-of-pocket cost therefor, all
electricity consumed or to be consumed in the Premises and shall pay
to Landlord or a meter company designated by Landlord (a) the actual
out-of-pocket cost of the electricity consumed on those floors of the
Building on which the Premises (or portions thereof) are located, as
determined by a meter or meters (measuring both consumption and
demand) and related equipment installed (or, if existing, retrofitted) by
Landlord in accordance with Landlord's specifications, (b) the actual
out-of-pocket cost of keeping the meter(s) and related equipment in
good working order and repair and (c) any other actual out-of-pocket
costs incurred by Landlord in providing such electricity to Tenant (it
being understood that Landlord shall pay for all costs and expenses
incurred in connection with the installation of such meters or related
equipment). With respect to a multiple-tenant floor, the cost of
electricity, installation and maintenance to be paid by Tenant shall be
determined by multiplying Tenant's percentage of the total Rentable
Area of such floor by the sum of (i) the total amount of the electricity
consumed by all tenants or occupants of such floor as measured by the
meter on such floor, and (ii) the cost of keeping the meter(s) and
related equipment in good working order and repair; provided,
however, that if Tenant requests Landlord to install a separate meter to
measure Tenant's actual consumption of electricity, Landlord shall
install such meter, at Landlord's sole cost and expense, and Tenant shall
pay (A) for the cost of Tenant's actual consumption of electricity as
measured by such separate meter, (B) the full cost of any maintenance
of any separate meter performed by Landlord, and (C) tenant's
percentage of the Rentable Area of the floor multiplied by (y) the cost
of the electricity consumed in the common areas of Tenant's floor. In
determining the actual cost of the electricity consumed in the Premises,
Landlord shall take into account any special abatements or rebates, but
only to the extent that such abatements or rebates actually decrease the
actual cost to Landlord of such electricity, and such special abatements
or rebates shall be deducted from Tenant's Costs. In no event shall the
Electricity Additional Rent for submetered electricity supplied to the
Premises be more or less than Landlord's actual cost to purchase and
distribute such electricity. If any tax is imposed upon the Electricity
Additional Rent received by Landlord from the sale or resale of
electricity to Tenant, Tenant agrees that to the extent permitted by
Law, Tenant shall reimburse such taxes to Landlord as Additional Rent
within 20 days after demand therefor. Bills for the cost of electricity,
installation and maintenance shall be rendered at such times as
Landlord may elect, and such amounts shall be paid by Tenant as
Additional Rent within 20 days of Tenant's receipt of bills therefor.
Landlord covenants to use all reasonable efforts to provide such bills to
Tenant promptly and in any event at least once every three (3) months.
If there is more than one meter for the Premises, the electricity
rendered through each meter may be computed and billed separately.
VI.1.2 Alternative Methods for Providing Electricity. If, at any time
during the Term, Landlord is prohibited by Law or the requirements of
the New York State Public Service Commission from supplying and
charging for electricity on a submetered basis strictly in accordance
with the provisions of Section 6.1.1., including by reason of the
imposition of any tax, tariff or other cost on Landlord which under
applicable Laws Landlord is not permitted to pass through in full on the
basis contemplated by Section 6.1.1., Landlord shall supply electricity
to the Premises and, at Landlord's election, may charge for the
electricity on a rent inclusion basis or a direct supply basis, as selected
by Landlord.
VI.1.2.1 During any period in which electricity is to be supplied to the
Premises on a rent inclusion basis, the Base Rent shall be increased by
an amount (the "Electric Inclusion Amount") equal to the actual
amount required to be paid hereunder by Tenant under Section 6.1.1
for electricity supplied to the Premises during the 365 day period
immediately prior to such period, including all sales and use taxes
thereon. Thereafter and from time to time during the Term (but in no
event more frequently than once every three (3) months), Landlord
may cause surveys of Tenant's electricity usage to be made (at
Landlord's sole cost and expense) by a reputable electrical consultant
selected by Landlord ("Landlord's Electrical Consultant") (which
survey shall be done in such a manner as to minimize any unreasonable
interference with the conduct of Tenant's business and upon reasonable
prior notice to Tenant) and, if such survey shall determine that the then
Electric Inclusion Amount does not accurately reflect the amount
and/or cost of electricity consumed in the Premises, the then Electric
Inclusion Amount shall be adjusted by Landlord's Electrical Consultant
in accordance with such survey to reflect the actual cost to Landlord of
the electricity consumed by Tenant based on Tenant's usage of
electricity as indicated by such survey. Landlord may also cause the
Electric Inclusion Amount to be adjusted without survey from time to
time in accordance with calculations by Landlord's Electrical
Consultant to reflect changes in the fuel adjustment component of the
utility company's charge or other changes in the charges by the utility
company supplying electricity to Landlord. Notwithstanding the
preceding two sentences, Tenant shall have the opportunity to
challenge any adjustments to the Electrical Inclusion Amount and to
hire, at its sole cost and expense, its own reputable electrical consultant
("Tenant's Electrical Consultant"). In the event that Tenant's Electrical
Consultant's determines that (x) the Electrical Inclusion Amount should
be reduced in an amount more than ten percent (10%) of the amount
that Landlord's Electrical Consultant determines, then the matter shall
be referred to arbitration according to the provisions of Section 16.21
or (y) the Electrical Inclusion Amount should be reduced in an amount
equal to or less than ten percent (10%) of the amount that Landlord's
Electrical Consultant determines, then the Electrical Inclusion Amount
shall be adjusted by an amount equal to the average of the amounts
determined by Landlord's Electrical Consultant and Tenant's Electrical
Consultant. Tenant shall pay the amount of any increase in the Electric
Inclusion Amount retroactively from the date of the survey of Tenant's
electricity usage and/or from the date when the increased charges to
Landlord from the utility company became effective, as the case may
be, such amount to be paid within 20 days upon billing therefor by
Landlord. An appropriate credit against Rents shall be allowed to
Tenant to the extent such survey evidences a decrease in Landlord's
cost resulting from Tenant's electricity usage.
VI.1.2.2 During any period in which electricity is to be supplied to the
Premises on a direct supply basis, Tenant shall obtain and pay for
electricity directly from the public utility company furnishing electricity
to the Unit. Notwithstanding anything contained in this Section 6.1 to
the contrary, if use of the Building's or the Unit's wires, risers, conduits,
feeders and switchboards would be required for the Premises to receive
electricity directly from the public utility company, then all meters and
all additional panel boards, feeders, risers, wiring and other conductors
or equipment that may be required to obtain such electricity shall be
installed by Landlord at Tenant's expense.
VI.1.3 Electrical Capacity. (a) Tenant shall be entitled to receive the
electrical capacity described in Exhibit C (the "Basic Capacity").
Tenant covenants that its use of electricity will not exceed the Basic
Capacity furnished to the Premises pursuant to the provisions of this
Section 6.1.3. If Tenant requests electricity in addition to the Basic
Capacity or if Tenant is drawing electricity in excess of the Basic
Capacity, Landlord shall provide such excess capacity to Tenant at
Tenant's expense so long as such additional electricity is available for
use by Tenant without resulting in material alterations in or damage to
Building or Unit systems and Tenant is not then in default hereunder
beyond any applicable notice, grace and cure period.
(b) If Tenant fails to use 12 xxxxx or more per usable square foot in the
Premises within two years of Tenant's occupancy of the Premises on a
full-time basis, Landlord shall be entitled to reduce the Basic Capacity
in excess of 115% of Tenant's peak demand load for the previous two
year period plus one additional watt per usable square foot. Tenant
shall not be entitled to any compensation in connection with the
foregoing reduction of the Basic Capacity. In the event that Tenant
requires additional power during the term of this Lease in excess of the
then provided for Basic Capacity, Landlord shall use all reasonable
efforts to provide Tenant with such additional power at the actual out-
of-pocket cost incurred by Landlord for such electricity.
SECTION VI.2 Water. At no charge to Tenant, Landlord shall
provide (or cause the Board of Managers to provide) hot and cold
water for ordinary lavatory, drinking, kitchenette and cleaning purposes
in accordance with the Condominium Documents.
SECTION VI.3 Elevators. Tenant shall be entitled to receive without
charge non-exclusive passenger elevator service, freight elevator
service (subject to the provisions set forth in Paragraph 7.4 of Exhibit J
relating thereto) and loading dock service on a first-come, first-serve
basis on Business Days during Business Hours and have at least four
(4) passenger elevators capable of servicing the Premises subject to call
at all other times, in each case subject to the procedures in the
Condominium Documents relating to such elevator and loading dock
service. Subject to the preceding sentence, Landlord and/or the Board
of Managers shall have the right to change the operation or manner of
operating any of the elevators or the loading dock in the Building and
shall have the right to discontinue, temporarily or permanently, the use
of any one or more cars in any of the banks of elevators. The Board of
Managers imposes a minimum of four (4) hours for freight elevators
and loading dock service outside of Business Hours, and Tenant shall
pay to Landlord as Additional Rent the actual out-of-pocket expenses
incurred by Landlord for such service (which shall include all costs and
expenses charged by the Board of Managers to Landlord under the
Condominium Documents with respect to such service). As of January
1, 1997, the Board of Managers charges $60.00 per hour for freight
service xxxxxx charges and $46.00 per hour for guard charges (except
on union holidays which are charged at a higher rate).
SECTION VI.4 Cleaning. Landlord shall remove (or cause the Board
of Managers to remove) without charge Tenant's ordinary office refuse
and rubbish, and Landlord shall provide (or cause the Board of
Managers to provide) office and window cleaning services in
accordance with the cleaning specifications attached hereto as Exhibit
G (the "Cleaning Specifications"). Landlord shall not be required to
provide janitorial services for portions of the Premises used for storage.
SECTION VI.5 Heating and Air Conditioning. Tenant shall be
entitled to receive heat, air conditioning and ventilation to the floor on
which the Premises are located in accordance with the specifications
and subject to the design criteria set forth in Exhibit B to the
Declaration (which specifications are hereby incorporated herein by
reference) (a) at all times, without charge, for base building heating,
ventilation, or air conditioning service during Business Hours, (b)
during Business Hours for heating or air conditioning service to any
supplemental HVAC unit installed by Tenant, at Landlord's actual out-
of-pocket cost, if any (but without duplication of any charge allocable
to Tenant by reason of Section 6.8 below), and (c) at other times upon
Tenant's request, subject in each case, to the terms and at the rates and
charges set forth in Exhibit H attached hereto, and Landlord agrees to
provide (or to use all reasonable efforts to cause the Board of
Managers to provide) such heating, air conditioning and ventilation is
provided to Tenant. Tenant acknowledges and agrees that Landlord
shall have no liability or responsibility for any deviation in temperature,
humidity or related conditions if such deviation arises from (a) Tenant's
effectuation of the distribution throughout the Premises of HVAC
service from the point(s) on each floor of the Premises at which the
Building or Unit HVAC systems meet the HVAC distribution systems
of the Premises, (b) Tenant's interior partitioning, existing
Improvements or covering of convector units, or (c) any material
deviation by Tenant from the assumptions upon which the design
specifications set forth in the Building Standards are based to the extent
set forth therein. Tenant acknowledges that all requests for overtime
HVAC are to be made to the Board of Managers in accordance with
the Condominium Documents and Exhibit H to this Lease.
SECTION VI.6 Service Interruption; Limitation of Liability.
VI.6.1 Service Interruption. Notwithstanding any provision of this
Lease to the contrary, Landlord reserves the right (for itself and the
Board of Managers) to interrupt, curtail, stop or suspend service or
operation of any of the Building Service Systems or any of the services
to be delivered to Tenant under this Lease (a) when Landlord is
required to do so by Law or to adhere to a recognized energy, water or
other resource conservation program or guidelines, laws or
recommendations promulgated by any Federal, state, municipal or
other governmental or quasi-governmental agency, bureau, board,
commission, department, office or other sub-division thereof, or the
American Society of Heating, Refrigeration and Air Conditioning
Engineers (or its successor) (it being understood and agreed that the
term "recognized" as used in this sentence shall be defined by reference
to whether other Comparable Buildings are adhering to such programs,
guidelines, and recommendations, unless such program, guideline or
recommendation is required by Law in which case no such reference to
Comparable Buildings shall be necessary) or (b) when necessary, by
reason of accident, or emergency, or for repairs, alterations,
replacements, improvements, maintenance or testing desirable or
necessary in the judgment of Landlord or the Board of Managers to be
made, until such repairs, alterations, replacements or improvements,
maintenance or testing shall have been completed. With respect to
service interruptions necessary for non-emergency repairs, alterations,
replacements, improvements, maintenance or testing, Landlord shall
deliver to Tenant not less than 7 days' written notice specifying the date
and times (which shall be before or after Business Hours) on which
such service interruption shall occur. Landlord shall use all reasonable
efforts to perform or cause the Board of Managers to perform any such
repairs, alterations, replacements or improvements, to the extent
possible (which shall include the incurrence of overtime or other
premium pay labor), with reasonable diligence and in a manner
designed to minimize interference with, or disruption of, the conduct of
Tenant's normal business operations at the Premises, and Landlord shall
diligently prosecute same to completion.
VI.6.2 Limitation of Liability. Landlord shall have no responsibility or
liability for (a) failure to supply any service provided by the Building
Service Systems during any period referred to in Section 6.6.1 or (b)
any loss, damage or expense that Tenant may sustain or incur by reason
of any failure, inadequacy or defect in the character, quantity, quality or
supply of services or utilities furnished to the Premises, the Unit or the
Building for any reason except for actual damage suffered by Tenant by
reason of any such failure, inadequacy or defect but only to the extent
caused by the negligence or willful misconduct of Landlord or its
agents, employees or contractors, and then only after actual notice
thereof to Landlord and Landlord's failure to cure within a reasonable
time; it being understood and agreed that if Tenant shall be entitled to
any such damages, the calculation of the amount of such damages shall
begin accruing from the date of Tenant's notice to Landlord.
VI.6.3 Condominium Documents Control. If there is a right in the
Condominium Documents for the Board of Managers to interrupt,
curtail, stop or suspend service or operation of any of the Building
Service Systems or any of the services to be delivered to Tenant under
this Lease, Tenant acknowledges that, notwithstanding anything in this
Lease to the contrary, the terms and provisions of the Condominium
Documents shall control with respect to such right; provided that such
right is exercised in a non-discriminatory manner.
SECTION VI.7 Access to Premises. Subject to the terms of this
Lease, Tenant shall be entitled to access to the Premises 365 days per
year, 7 days per week and 24 hours per day.
SECTION VI.8 Chilled Water. Subject to and in accordance with the
Chilled Water Agreement (as such term is defined in the Declaration),
Landlord shall provide (or use all reasonable efforts to cause the Board
of Managers to provide) (i) an amount of approximately 65 tons of
chilled water for the entire Premises (or such lesser amount as
reasonably determined by Tenant's engineer) for each entire floor of the
Building on which the Premises are located for use of supplemental air
conditioning units to be installed in the Premises by Tenant at its sole
expense (and for each partial floor of the Building within the Premises,
additional tonnage equal to a pro rata amount of an additional 32.5
tons of chilled water which shall be made available to such floor) and
(ii) that such chilled water shall be chilled to a temperature which shall
not be higher than 42.5 degrees Fahrenheit at the Metering Station (as
such term is defined in the Chilled Water Agreement) located on or
near the 16th floor. During the Term, Tenant shall pay to Landlord for
chilled water supplied to the Premises for supplemental air-conditioning
an amount equal to the actual out-of-pocket expenses incurred by
Landlord for such chilled water (which shall include all costs and
expenses due to be paid by Landlord under the Chilled Water
Agreement). As of calendar year 1996, the cost of chilled water to
Landlord is $33.83 per hour for 25 tons. Such charges shall be
adjusted from time to time to account for changes in the actual out-of-
pocket cost to Landlord of furnishing chilled water. Tenant shall pay
such charges within 10 days after bills are rendered therefor. Tenant
acknowledges that chilled water is presently provided by 1 New York
Plaza 24 hours/day and 365 days/year in accordance with the Chilled
Water Agreement (a copy of which has been previously delivered to
Tenant).
SECTION VI.9 Building Security. Landlord covenants and agrees to
provide (or to cause the Board of Managers to provide), and Tenant
shall be entitled to receive, without charge, building security in
accordance with Section 16.20 below.
SECTION VI.10 Actual Out-of-Pocket Expenses of Landlord.
Notwithstanding anything in this Lease to the contrary, except to the
extent expressly provided for, the cost to Tenant for services or
materials to be provided by Landlord at Tenant's expense under this
Lease, shall include only the actual out-of-pocket expenses paid by
Landlord to the Board of Managers or any independent third party
provider of such services or materials without any increase by way of
overhead charge or other xxxx-up.
ARTICLE VII
INSURANCE AND INDEMNIFICATION
SECTION VII.1 Use of Premises. Tenant shall not do or permit
anything to be done in or about the Premises that might: (a) result in
insurance companies of good standing refusing to insure the Premises,
the Unit or the Building in amounts reasonably satisfactory to Landlord
or the Board of Managers, as applicable, (b) result in the assertion of
any defense by the insurer in whole or in part to claims under any of
such policies, or (c) result in the cancellation of any insurance policy
covering or relating to the Premises, the Unit or the Building. If by
reason of any default by Tenant under this Lease, or any Improvement
or Tenant's Property in the Premises, or the use or occupancy of the
Premises by Tenant for other than the Permitted Use, (i) any such
insurance shall be canceled by the insurance carrier, then, in addition to
any other rights or remedies that Landlord may have under this Lease,
Tenant shall indemnify, defend and hold harmless the Landlord Parties
against any loss that would have been covered by such insurance, and
(ii) the premiums for any insurance on the Unit or the Building
(including rent insurance) are higher than they otherwise would be,
Tenant shall reimburse Landlord for the increase attributable to
Tenant's default, within 20 days after demand, as Additional Rent.
SECTION VII.2 Insurance Requirements. At all times during the
Term, Tenant shall comply, at Tenant's expense, with the Insurance
Requirements attached hereto as Exhibit I.
SECTION VII.3 Indemnity. Tenant shall defend, indemnify and hold
harmless the Landlord Parties from and against any and all claims,
demands, liability, loss, damage, costs and expenses (including
reasonable attorneys' fees and disbursements) arising from: (a) any
breach or default by Tenant in the full and prompt payment and
performance of Tenant's obligations under this Lease (beyond the
expiration of any applicable grace, cure and notice periods); (b) the use
or occupancy or manner of use or occupancy of the Premises by
Tenant or any Person claiming under Tenant in violation of the
provisions of this Lease; (c) any act, omission or negligence in violation
of the Lease by Tenant or any of its subtenants or licensees or its or
their partners, principals, directors, officers, agents, invitees, employees
or contractors, during the Term (or after the expiration of the Term,
but only if Tenant is still occupying the Premises); (d) any accident,
injury or damage whatsoever occurring in or about the Premises or the
Building during the Term (or after the expiration of the Term, but only
if Tenant is still occupying the Premises), but excluding therefrom any
accident, injury or damage caused by the negligence or wilful
misconduct of Landlord or by a default by Landlord of any of its
obligations hereunder (after 3 Business Days' prior written notice to
Landlord); (e) the performance of any Alteration in the Premises
including, without limitation, Tenant's failure to obtain any permit,
authorization or license or failure to pay in full any contractor,
subcontractor or materialmen performing work on such Alteration
(unless such failure is due to Landlord not disbursing the Allowance in
accordance with Paragraph 6 of Exhibit D); and (f) any Mechanics Lien
filed, claimed or asserted in connection with any Alteration or any other
work, labor, services or materials done for or supplied to Tenant, or
any Person claiming through or under Tenant (unless such failure is due
to Landlord not disbursing the Allowance in accordance with
Paragraph 6 of Exhibit D). In any claim, action or proceeding brought
against any of the Persons indemnified under this Section 7.3 for a
matter covered by this indemnity, Tenant, upon notice from the
indemnified Person, shall defend such claim, action or proceeding by
counsel reasonably satisfactory to Landlord and the indemnified
Person, provided such indemnified Person has timely notified Tenant of
such action and cooperates in the defense thereof.
ARTICLE VIII
ALTERATIONS, REPAIRS AND MAINTENANCE
SECTION VIII.1 Alterations by Tenant. Tenant may from time to
time, so long as Tenant is not in default hereunder (beyond the
expiration of any applicable grace, cure and notice periods), at its
expense, make such Alterations in and to the Premises as Tenant may
desire so long as:
(a0 The Alteration (i) does not affect the outside appearance of the
Unit or the Building and is not visible from the outside of the Unit or
the Building; (ii) does not affect the certificate of occupancy for the
Building or for the Unit, or any portion thereof should a separate
certificate of occupancy for the Unit or any portion thereof be issued;
(iii) is not of a structural nature and does not negatively impair or
adversely affect the strength or structural integrity of the Unit or the
Building or any structural component thereof (including, without
limitation, its exterior walls, supporting beams, columns, floor slabs,
foundations or elevator systems or the Building Service Systems); (iv)
does not affect the proper functioning of the Building Service Systems
or facilities of the Unit or the Building or any portion thereof; (v) does
not affect the quiet enjoyment of, or otherwise materially adversely
affect, the other tenants or occupants of the Building or the Unit and
(vi) does not result in the violation of any Law;
(b0 Tenant shall, prior to commencement of any Alteration, comply
with Paragraphs 1-4, inclusive, of the Alteration Requirements attached
hereto as Exhibit J; and
(c0 Tenant shall comply with all other Alteration Requirements set
forth on Exhibit J as and when such compliance is required.
SECTION VIII.2 Tenant's Property. All office equipment that is
installed in the Premises by or for the account of Tenant without
expense to Landlord (other than from the Allowance), whether or not
attached to or built into the Premises, and that may be removed
without substantial damage to the Premises or the Unit, and all
furniture, furnishings and other articles of movable personal property
owned by Tenant and located in the Premises shall remain the property
of Tenant ("Tenant's Property") and may be removed by Tenant at any
time during the Term so long as Tenant is not in Material Default
hereunder beyond the expiration of any applicable cure, notice and/or
grace period. Tenant shall repair, at its sole expense, any damage to
the Premises or shall reimburse Landlord for the costs of repairing any
damage to the Unit, the Common Elements or the Building resulting
from the installation or removal of Tenant's Property.
SECTION VIII.3 Taxes on Tenant's Property and Improvements.
Except as provided herein, Tenant shall pay when due any taxes
measured by or attributable to the cost or value of Tenant's Property or
any Improvements made by or for Tenant (other than Tenant's Work)
regardless of whether title to such Improvements shall be vested in
Landlord or Tenant and, if Tenant shall fail to pay such taxes or if such
taxes shall be required to be paid by Landlord, Tenant shall reimburse
Landlord, as Additional Rent, upon demand for any such taxes paid by
Landlord.
SECTION VIII.4 Landlord's Repair and Maintenance Obligations.
Subject to the provisions of Article IX and Section 8.5, Landlord shall
maintain (or, in the case of the Common Elements and the Building
Service Systems, shall maintain or use all reasonable efforts to cause
the Board of Managers to maintain) in good condition, order and repair
(a) the roof, shell, exterior and load bearing walls and other structural
elements of the Unit, (b) the Building Service Systems serving the
Premises and (c) all Common Elements, public corridors, lobbies and
public areas of the Building available for use by Tenant. Landlord shall
not be responsible for the maintenance or repair of any portion, area,
component or element of the Unit, the Building, or the Premises other
than as expressly provided in this Section 8.4. Landlord shall have no
obligation to make any repair or undertake any maintenance activity
described in this Section until a commercially reasonable period
consistent with other Comparable Buildings following receipt of
written notice from Tenant or Landlord's actual notice of the need for
the same. Tenant shall accept performance by the Board of Managers
(or its agents and contractors) on behalf of Landlord of any obligation
on Landlord's part to be performed under this Lease, including repair
and maintenance obligations, provided, however, that the failure of the
Board of Managers (or its agents and contractors, as the case may be)
to timely complete such repairs (after the expiration of any applicable
grace, cure and notice provisions) shall be a breach of Landlord's
covenants under this Section 8.4.
SECTION VIII.5 Tenant's Obligations. Subject to the provisions of
Article IX and Section 8.4, at all times during the Term, Tenant at its
expense (a) shall maintain in good order, condition and repair the
Premises, the Improvements and all fixtures or facilities contained
therein which do not constitute part of the Common Elements or the
Building Service Systems, including, without limitation, any
distribution conduits for the HVAC system serving the Premises, any
supplemental air conditioning units, any private lavatory and any public
lavatories located on floors leased entirely to Tenant, shower, toilet,
washbasin and kitchen facilities, and all plumbing serving or connected
to such systems or facilities and (b) shall be responsible for all
maintenance and repairs, interior and exterior, structural and non-
structural, ordinary and extraordinary, of the Premises (including all
fixtures, installations and equipment therein), the Unit, the Unit's
facilities and systems, the Building and the Building's facilities and
systems, made necessary, in whole or in part, by: (i) the performance
of any Alteration or the existence of any Improvement; (ii) the
installation or use of Tenant's Property in the Premises; (iii) the moving
of Tenant's Property into or out of the Building; (iv) any act or
omission of Tenant, any subtenant of Tenant or any officer, partner,
principal, employee, agent, contractor or invitee thereof; (v) Tenant's
use or occupancy of the Premises (other than use or occupancy of the
Premises in the ordinary course of Tenant's business); or (vi) the use or
removal by Tenant of any Improvement; provided, however, that any
repairs and maintenance outside of the Premises or to the Common
Elements for which Tenant is responsible pursuant to the foregoing
provisions of this Section 8.5 shall be performed by Landlord or the
Board of Managers in a commercially reasonably manner after notice
to Tenant, at Tenant's cost and expense. Tenant, at its expense, shall
promptly replace all scratched, damaged or broken doors and interior
glass in the Premises if such scratch, damage or break is visible from
any passenger elevator lobby on any floor of the Premises. Tenant shall
be responsible for the cost of all repainting and all repairs, maintenance
and replacement of wall, ceiling and floor coverings in the Premises.
ARTICLE IX
DAMAGE OR DESTRUCTION
SECTION IX.1 Restoration. (a0 If the Building, the Unit or the
Premises is partially or totally damaged by fire or other casualty, then
so long as neither Landlord nor Tenant has duly exercised any right to
terminate this Lease under this Article IX and subject to the terms and
conditions of the Declaration and the rights of Senior Interest Holders,
if any:
(i) Landlord shall repair, or shall use all reasonable efforts to cause the
Board of Managers to repair, the damage and restore or rebuild the
Building, the Unit or the Premises (including the Improvements but
excluding Tenant's Property), as the case may be (but only to the extent
otherwise required under this Article IX, including, without limitation,
Section 9.1(c) below) to the extent necessary for Tenant to occupy and
reasonably conduct business throughout the Premises as conducted
prior to the damage or destruction (such repairs and restoration being
herein called "Landlord's Casualty Restoration Work"), with reasonable
dispatch (including an obligation to incur overtime or premium pay
labor rates) after the collection of substantially all of the insurance
proceeds receivable on account of the fire or other casualty; and
(ii) once commenced, Landlord shall diligently prosecute Landlord's
Casualty Restoration Work in order to complete the same within the
shortest time reasonably possible (including an obligation to incur
overtime or premium pay labor rates), except as expressly provided in
Article 9.
(b0 Whenever in this Article 9, reference is made to the Premises,
such reference shall include all Improvements (and Landlord's Casualty
Restoration Work shall include the repair of all damage to, and the
restoration of, all such Improvements) but shall not include any
Tenant's Property (and Landlord shall have no obligation to repair or
restore any Tenant's Property).
(c0 Notwithstanding anything in this Section 9.1 to the contrary,
nothing in this Article IX shall require Landlord or the Board of
Managers, as the case may be, to expend on such restoration amounts
in excess of the total insurance proceeds (net of the costs of collection)
collected and deposited with Landlord on account of such casualty, and
in no event shall Landlord be required to repair or restore the Building,
the Unit or the Premises (or to cause the Board of Managers to repair
or restore) in the event the Board of Managers determines not to so
repair or restore the same pursuant to the Condominium Documents.
Tenant shall give prompt notice to Landlord of any fire or other
casualty in the Premises.
(d0 Landlord, upon Tenant's request from time to time, shall keep
Tenant informed with regard to, and meet with Tenant to discuss, the
planning for and the prosecution of Landlord's Casualty Restoration
Work.
(e0 Within fifteen (15) Business Days of the date on which the Unit
or the Premises or any portion thereof is damaged by fire or other
casualty such that Tenant is thereby "deprived of the beneficial
enjoyment of any portion of the Premises", (as such phrase is
hereinafter defined), Landlord, by written notice to Tenant, shall state
the date by which, in the opinion of a reputable contractor selected by
Landlord, Landlord will have substantially completed Landlord's
Casualty Restoration Work to the extent necessary for Tenant to
occupy and reasonably conduct business throughout the Premises as
conducted prior to the damage or destruction, including, without
limitation, (a) restoration of substantially all services under Article 6
and (b) compliance with all Laws compliance with which is required for
such occupancy and conduct of business (such date being referred to as
the "Estimated Casualty Restoration Work Completion Date").
(f0 Within 5 Business Days after Landlord delivers to Tenant the
notice required under clause (e) above, Landlord, by written notice to
Tenant, shall state Landlord's determination to complete Landlord's
Casualty Restoration Work by the Estimated Casualty Restoration
Work Completion Date.
(g0 The inadequacy of any insurance proceeds or any delay in
receiving same shall not limit any rights of Tenant to terminate this
Lease in accordance with Section 9.4.2.
IX.1.1 Insurance Proceeds. The proceeds of all policies providing
coverage for the Improvements but not Tenant's Property shall be paid
in accordance with the terms of the Condominium Documents. In the
event this Lease is terminated on account of a casualty event, Landlord
shall pay all insurance proceeds (net of collection costs) attributable to
Tenant's Improvements to Tenant upon the later to occur of (i) 10
Business Days after such proceeds are collected and (ii) 30 days
following termination of this Lease. All claims under such insurance
shall be adjusted and settled by Landlord alone, all proceeds of such
insurance shall be applied to Landlord's Casualty Restoration Work,
and any balance remaining after the completion thereof may be retained
by Landlord without accountability to Tenant; provided that (i) with
respect to Tenant's Property, (ii) with respect to the Improvements in
the case of termination of this Lease by Landlord or Tenant under
Section 9.4.1 or Section 9.4.2, or (iii) as otherwise provided herein,
Tenant may participate in the adjustment and settlement of such
insurance, and Tenant shall be entitled to receive insurance proceeds
with respect to the foregoing matters.
SECTION IX.2 Rent Abatement. Subject to the provisions of Section
9.3, if fire or other casualty damages, destroys or renders the Premises
or any portion thereof untenantable or deprives Tenant of reasonable
access to the Premises or any portion thereof and Tenant actually
vacates such portion of the Premises, then the Base Rent and
Additional Rent payable under Article IV shall be abated (if all of the
Premises is untenantable) or reduced (if only a portion of the Premises
is untenantable) by the proportion that the Rentable Area of such
portion of the Premises bears to the Premises Area, for the period
beginning on the date of the damage or destruction and ending on the
earlier of (a) the date on which Landlord will have substantially
completed Landlord's Casualty Restoration Work to the extent
necessary for Tenant to occupy and reasonably conduct business
throughout the Premises as conducted prior to the damage or
destruction and Tenant has reasonable access to the Premises or (b) the
date on which Tenant reoccupies such portion of the Premises for the
conduct of its business.
SECTION IX.3 Exception to Abatement. Tenant shall not receive
any abatement or reduction of Base Rent or Additional Rent if: (a)
Landlord provides other comparable space in the Unit reasonably
suited for the temporary conduct of Tenant's business within 3 Business
Days of the date of such fire or casualty, Tenant has reasonable access
to such substitute space, and Landlord reimburses Tenant for its actual
out-of-pocket expenses incurred in connection with any such relocation
(but Landlord shall have no obligation to provide such other space); or
(b) by reason of some act or omission on the part of Tenant, its
subtenant or assignee, or its or their partners, directors, officers,
employees, agents, invitees or contractors, Landlord (or the Board of
Managers or any Senior Interest Holder) is unable to collect
substantially all of the insurance proceeds (including, without limitation,
rent insurance proceeds) for damage or destruction of the Premises, the
Unit or the Building, as the case may be, arising out of such fire or
other casualty. The collection of rent by Landlord under the
circumstances described in clause (b) of this Section 9.3 shall not
preclude Landlord from seeking damages from Tenant or exercising
other remedies it may have under this Lease, under Law or in equity.
SECTION IX.4 Termination Rights.
9.4.1 Landlord's Termination Rights. (a) If the Building, the Unit or
the Premises is damaged or destroyed by fire or other casualty, and
either:
(i) (x) the Building is so damaged (whether or not the Premises or the
Unit is damaged or destroyed) that the owners of the condominium
units in the Condominium are not required to restore the Building and
elect not to restore the Building and (y) Tenant is deprived of
reasonable access to the Premises and Landlord terminates all other
leases in the Unit;
(ii) less than one year remains in the Term at the time of the fire or
other casualty and the Estimated Casualty Restoration Work
Completion Date is more than 90 days from the date of such damage
or destruction; or
(iii) Landlord is required under Section 9.2 to xxxxx or reduce the Base
Rent and Additional Rent for all or substantially all of the Premises for
a period in excess of nine (9) months if rebuilding or repairs were
undertaken,
then, in any of such cases, Landlord may terminate this Lease by giving
Tenant notice to such effect within 100 days after the date of the
casualty. This Lease shall terminate on the 30th day after the date that
such termination notice from Landlord is given, and the Rents shall be
prorated as of such termination date.
(b) If Landlord elects to terminate this Lease pursuant to Section
9.4.1(a)(iii) above, Landlord shall pay to Tenant an amount equal to
50% of the Net Reletting Profits, if any. Any such payments shall be
paid within ten (10) days after Landlord's actual receipt of any such Net
Reletting Profits. This obligation shall survive termination of this
Lease, but in no event shall Landlord have any obligation to pay to
Tenant any Net Reletting Profits allocated to periods after September
30, 2013. As used herein, "Net Reletting Profits" shall mean an
amount equal to (A) the sum of all rent, additional charges and other
consideration paid to Landlord by a tenant for or in connection with the
reletting of the Premises (but excluding therefrom any sums received as
a security deposit under any such lease) during the term of the relevant
lease which shall be pro-rated over the term of the Lease in equal
monthly payments less (B) Reletting Expenses incurred in connection
with this Lease or with such reletting. As used herein, "Reletting
Expenses" shall mean (i) all unamortized costs of Landlord with respect
to this Lease (including, without limitation, brokerage commissions,
free rent and tenant work allowance) and (ii) brokerage commissions,
legal, accounting and other professional fees, marketing and advertising
costs, takeover expenses, cash contributions or alteration expenses and
any other costs and expenses (hard and soft costs) incurred, or to be
incurred, by Landlord (including, without limitation, lease takeover and
moving expenses and the cost of all tenant improvements and other
tenant inducements) in each case, in connection with such reletting.
9.4.2 Tenant's Termination Rights. If the Building (including the
Building Service Systems), the Unit, or the Premises or any portion
thereof is damaged by fire or other casualty such that Tenant is thereby
"deprived of the beneficial enjoyment of all or a substantial portion of
the Premises", and either
(i) the Estimated Casualty Restoration Work Completion Date is later
than the date 180 days after such fire or other casualty;
(ii) on the date which is 180 days after such fire or other casualty
Landlord (or the Board of Managers, if such restoration is the Board of
Manager's responsibility under the Condominium Documents) has not
substantially completed Landlord's Casualty Restoration Work to the
extent necessary for Tenant to occupy and reasonably conduct business
throughout the Premises as conducted prior to the damage or
destruction;
(iii) Landlord (or the Board of Managers, if such restoration is the
Board of Manager's responsibility under the Condominium
Documents) has not commenced negotiations to settle its claim for
insurance with its insurance carriers within 15 Business Days of the
date of the damage or destruction;
(iv) Landlord (or the Board of Managers, if such restoration is the
Board of Managers' responsibility under the Condominium
Documents) has not settled its claim for insurance and given Tenant
notice, within sixty (60) days after the date of the damage or
destruction, of its agreement to perform Landlord's Casualty
Restoration Work;
(v) Landlord (or the Board of Managers, if such restoration is the
Board of Manager's responsibility under the Condominium
Documents) has not commenced Landlord's Casualty Restoration
Work within sixty (60) days after the date of the damage or
destruction; or
(vi) Landlord has not given Tenant the notice required to be given
under Section 9.1(e) with respect to the Estimated Casualty
Restoration Work Completion Date or under Section 9.1(f) with
respect to Landlord's intention to complete Landlord's Casualty
Restoration Work (after written notice by Tenant and 3 Business Days
opportunity for Landlord to provide such notice),
then, in any of such cases, Tenant may terminate this Lease by giving
Landlord notice to such effect within thirty (30) days after the
occurrence of any of the events specified in Section 9.4.2(i)-(vi) above.
This Lease shall terminate on the date specified in Tenant's termination
notice given pursuant to this Section 9.4.2 (unless such notice is
nullified by the Landlord or the Board of Managers, if such restoration
is the Board of Manager's responsibility under the Condominium
Documents, substantially completing Landlord's Casualty Restoration
Work prior to the date of termination specified in Tenant's termination
notice) which shall be no earlier than thirty (30) days and no later than
one hundred eighty (180) days after the date of such notice, and the
Rents shall be prorated and adjusted as of such termination date; any
prepaid Rents shall be promptly refunded and any unpaid Rents shall be
promptly paid.
As used in this Article IX, Tenant shall be deemed "deprived of the
beneficial enjoyment of all or a substantial portion of the Premises", if
(i) twenty percent (20%) or more of the Rentable Area of the Premises
is destroyed or damaged and, as a result, Tenant is unable to reasonably
conduct its business in the Premises, (ii) a substantial portion of
Tenant's trading floor is destroyed or damaged, (iii) a substantial
portion of Tenant's computer installation is destroyed or damaged and
Tenant is unable to reasonably conduct its business in the Premises, or
(iv) Tenant is deprived of reasonable access to the Premises for a
period of time in excess of seven (7) Business Days.
SECTION IX.5 Business Interruption. Except as provided in Section
9.4.2 and Section 9.4.3, Tenant shall not be entitled to terminate this
Lease, and no damages, compensation or claim shall be payable by
Landlord, for inconvenience, loss of business or annoyance arising from
any repair or restoration of any portion of the Premises, the Unit or of
the Building pursuant to this Article IX. Subject to Section 9.1,
Landlord shall exert reasonable efforts to make (or to cause to be
made) such repair or restoration promptly and in such manner as not to
interfere unreasonably with Tenant's use and occupancy of the
Premises.
SECTION IX.6 Waiver. This Article IX constitutes an express
agreement governing damage or destruction of the Premises, the Unit
or the Building by fire or other casualty, and neither Section 227 of the
Real Property Law of the State of New York, which provides for such
contingency in the absence of an express agreement, nor any other
Laws of similar import now or hereafter in effect shall have any
application in any such case.
ARTICLE X
EMINENT DOMAIN
SECTION X.1 Complete Taking. If all or substantially all of the
Premises is taken by condemnation, sale in lieu of condemnation, or in
any other manner for any public or quasi-public use or purpose
("Eminent Domain"), this Lease and the term and estate hereby granted
shall terminate as of the date of vesting of title on such taking or the
date that the condemning or purchasing authority takes possession,
whichever is earlier ("Date of the Taking"), and the Rents shall be
prorated and adjusted as of such date.
SECTION X.2 Partial Taking. If part of the Building, the Unit or the
Premises is taken by Eminent Domain (but not substantially all of the
Premises), this Lease shall be unaffected by such taking, except that:
(a0 if more than 75% of the gross floor area of the Building or
more than 25% of the Unit Area shall be taken, whether or not any
portion of the Premises shall be affected thereby, or if so much of the
Unit, the Common Elements or the Building shall be taken that the
Board of Managers determines that the Unit or the Common Elements
cannot be restored, reconstructed or replaced in a suitable manner so
that the Unit may continue to be used for the purposes intended or that
it would be economically or operationally impractical to operate the
portion of the Building remaining after the taking, Landlord may, at its
option, terminate this Lease by giving Tenant notice to that effect
within 10 days after the Date of the Taking, and
(b0 if 25% or more of the Premises Area of the Premises (prior to
the taking) shall be so taken and the Premises Area of the Premises
remaining after such taking shall not be reasonably sufficient for Tenant
to continue the operation of its business at the Premises, or if, by
reason of such acquisition or condemnation, Tenant no longer has
reasonable means of access to the Premises, Tenant may, at its option,
terminate this Lease by giving Landlord notice to that effect within 10
days after the Date of the Taking.
This Lease shall terminate no later than the Date of the Taking, and the
Rents shall be prorated and adjusted as of such termination date. Upon
a partial taking, where this Lease continues in force as to any part of
the Premises, (i) the Base Rent shall be reduced by an amount equal to
the Base Rent attributable to the portion of the Premises taken and
Tenant's Share shall be adjusted to equal the percentage that the
Rentable Area of the portion of the Premises left to Tenant bears to the
Unit Area after the taking, and (ii) Landlord shall, or shall use
reasonable efforts to cause the Board of Managers to, repair or restore
the remaining portions of the Premises, the Unit or the Building, as the
case may be, with reasonable dispatch after collection of substantially
all of the award attributable to the taking by Eminent Domain;
provided, however, that neither Landlord nor the Board of Managers,
as the case may be, shall be required to expend on such repair or
restoration amounts in excess of the total awards (net of the costs of
collection) collected by it on account of the taking.
SECTION X.3 Award. Landlord shall be entitled to receive the entire
award or payment in connection with any taking of the Premises
without deduction for any estate vested in Tenant by this Lease.
Tenant hereby expressly assigns to Landlord all of its right, title and
interest in and to every such award or payment. Tenant shall be
entitled to claim and receive any award or payment from the
condemning authority expressly granted for the taking of Tenant's
Property, the interruption of its business or moving expenses, but only
if such award or payment shall be actually made and if Tenant's claim
does not adversely affect or result in any reduction of Landlord's award
or the Condominium's award or interfere with the prosecution of a
claim for the taking by Landlord or the Condominium. If Tenant
intervenes in a condemnation proceeding in which Landlord is a party,
Landlord and Landlord's counsel shall manage and control the
proceeding for Landlord and Tenant.
SECTION X.4 Temporary Taking. If all or any portion of the
Premises is taken by Eminent Domain for a limited period of time (it
being agreed that a taking for a period of time of six months or more
shall be treated as a permanent taking pursuant to the preceding
sections), this Lease shall remain in full force and effect except that
Tenant's obligations to pay Rents hereunder shall xxxxx for the period
of time of such taking, but only with respect to the Base Rent and
Additional Rent attributable to the portion of the Premises taken.
Tenant shall be entitled to claim and receive that portion of the award
or payment from the condemning authority expressly granted (a) for
any such temporary taking of the Premises attributable to any period
within the Term, (b) for any damage to Tenant's Property, and (c) if
such temporary taking terminates prior to the expiration of the Term,
for the cost of restoration of the Premises. Landlord shall be entitled to
receive that portion of the award that is made for any such temporary
taking of the Premises attributable to the period after the expiration of
the Term or that is allocable to the Unit, other than the Premises, or,
except as provided above, to the cost of restoration of the Premises or
that is made for any other purpose. If any such temporary taking
terminates prior to the expiration of the Term, Tenant shall restore the
Premises and the Improvements as nearly as possible to their condition
prior to the taking, at Tenant's sole cost and expense.
ARTICLE XI
SURRENDER OF PREMISES
SECTION XI.1 Surrender. On the last day of the Term, upon any
earlier termination of this Lease, or upon any re-entry by Landlord
upon the Premises pursuant to Article XV, all of Tenant's right, title
and interest, if any, in the Premises, the Improvements, the Unit or the
Building, including any possessory interest, shall cease, and Tenant
shall (a) quit and surrender the Premises to Landlord "broom clean"
and in good order, condition and repair (ordinary wear and tear
excepted), (b) remove all of Tenant's Property and repair, at its
expense, any damage to the Premises caused by such removal and (c)
remove all Improvements installed by or on behalf of Tenant and
repair, at its expense, any damage to the Premises caused by such
removal. Landlord may consider items of Tenant's Property that
remain in the Premises after the expiration or earlier termination of the
Term to have been abandoned. In that event, Landlord may, at its
option either (i) retain such items as its property or dispose of them
without accountability in such manner as Landlord shall determine, all
at Tenant's expense, or (ii) remove and store such items for Tenant.
Tenant shall reimburse Landlord for the reasonable expenses incurred
in connection with such disposal or removal and storage within 20 days
after receipt for an invoice therefor. The provisions of this Section
11.1 shall survive the expiration of the Term.
SECTION XI.2 Acceptance of Surrender. Prior to the expiration or
earlier termination of this Lease in accordance with the terms hereof,
no act or thing done by Landlord or its agents (including accepting the
keys or similar access devices to the Premises) shall be deemed an
acceptance of surrender of the Premises, and no agreement to accept
such surrender shall be valid unless in writing and signed by Landlord.
SECTION XI.3 Assignment of Subleases. The surrender by Tenant
of, or termination of, this Lease prior to the last day of the Term shall,
at the option of Landlord, operate as an assignment to Landlord of any
subleases of the Premises. Landlord, in its sole and absolute discretion,
may accept the assignment of all or any part of any subleases of the
Premises free of any claims, defenses or offsets by any sublessee against
Tenant by giving notice to the sublessee or sublessees to such effect.
SECTION XI.4 No Holding Over. There shall be no holding over by
Tenant after the expiration or earlier termination of this Lease and the
failure by Tenant to deliver possession of the Premises to Landlord
shall be an unlawful holdover. During any period in which Tenant so
holds over, at Landlord's option, the rental value of the Premises,
payable from the date immediately following the date on which Tenant
was to deliver the Premises through and including the last day of the
calendar month in which Tenant so delivers the Premises, shall be
deemed to be equal to 200% of the greater of (a) the Rents payable
immediately preceding the expiration or earlier termination of this
Lease, or (b) the then fair market rental value of the Premises.
Acceptance by Landlord of any such Rent during the period in which
Tenant so holds over shall not cure or waive Tenant's default, nor
prevent Landlord from exercising, before or after such acceptance, any
of the remedies provided by this Lease or at law or in equity. Payment
of any such Rent and other sums during any period in which Tenant
holds over shall not excuse Tenant's obligation to vacate and surrender
the Premises on the date, and in the manner and condition, required
under this Lease. If the Premises are not surrendered upon the
expiration or earlier termination of this Lease with respect to all or any
portion of the Premises, Tenant hereby indemnifies Landlord against
loss, cost, injury, damage, claim, expense, or liability (including
attorneys' fees and disbursements) resulting from delay by Tenant in so
surrendering the same, including any claims made by any succeeding
tenant or prospective tenant founded upon such delay excluding
however claims made with respect to any delays caused solely by Force
Majeure. Tenant waives any rights under Section 2201 of the Civil
Practice Law and Rules of the State of New York in connection with
any holdover proceedings that Landlord may institute against Tenant.
ARTICLE XII
EXCULPATION AND CERTAIN LANDLORD RIGHTS
SECTION XII.1 Exculpation. Notwithstanding anything to the
contrary in this Lease but subject to Section 12.5 which shall not be
affected by this Section 12.1, none of the Landlord Parties shall be
liable to Tenant or its partners, principals, directors, officers,
contractors, agents, employees, invitees, sublessees, licensees or any
other Person claiming through or under Tenant, for any loss, injury or
damage to Tenant or to any other Person, or to its or their property, or
for any inconvenience, annoyance, interruption or injury to business
arising from Landlord (or the Board of Managers) performing any
maintenance, repairs, alterations, additions or improvements in or to
any portion of the Building, the Unit or the Premises or in or to the
fixtures, equipment or appurtenances of the Building, the Unit or the
Premises (nor shall Tenant or any other Person be entitled to any
abatement or suspension of its obligation to pay Rents except as
specifically set forth herein or be construed to be constructively or
otherwise evicted on account of the foregoing), irrespective of the
cause of such loss, injury, damage, inconvenience, annoyance,
interruption or injury unless caused by or resulting from the gross
negligence (active or passive) or willful misconduct of Landlord or its
agents or employees in the operation or maintenance of the Premises or
the Unit; provided, however, that Tenant waives, to the full extent
permitted by Law, any claim for any indirect, consequential or punitive
damages, including loss of profits in connection therewith (it being
agreed that the foregoing waiver shall be ineffective if the cause of such
loss, injury, damage, inconvenience, annoyance, interruption or injury is
caused by or results from the bad faith, gross negligence or the willful
misconduct of Landlord or its agents or employees.
SECTION XII.2 Transfers of Landlord's Interest. In the event of (a) a
sale or transfer of all or any part of the Unit which includes the
Premises (by operation of law or otherwise), (b) the making of a lease
of all or substantially all of the Unit, or (c) a sale or transfer (by
operation of law or otherwise) of the leasehold estate under any such
lease, (i) except as otherwise expressly provided, the seller, transferor
or lessor, as the case may be, shall be and hereby is (to the extent of the
interest or portion of the Unit or leasehold estate sold, transferred or
leased) automatically and entirely released and discharged, from and
after the date of such sale, transfer or lease, of all liability in respect of
the performance of any of the terms of this Lease on the part of
Landlord thereafter to be performed; and (ii) the term "Landlord" shall
thereafter mean only the purchaser, transferee or lessee, as the case
may be, and the covenants and agreements of Landlord shall thereafter
be binding upon such purchaser, transferee or lessee; provided assignee
or lessee has assumed all of Landlord's obligations under this Lease. If
Landlord's interest in the Unit shall be sold, assigned or otherwise
transferred to any Person pursuant to foreclosure of the Condominium
lien or upon the exercise of any remedy provided in the Condominium
Documents, that Person shall not be: (A) liable for any act or omission
of Landlord under this Lease occurring prior to such sale, assignment
or other transfer; (B) subject to any offset, defense or counterclaim
accruing prior to such sale, assignment or other transfer; and (C) bound
by any payment prior to such sale, assignment or other transfer of Rent
for more than one month in advance (one year in the case of Tenant's
Tax Payment) or Estimated Operating Expense payment; except those
obligations described in Section 12.3.
SECTION XII.3 Recourse Limited to Unit; Limited Guaranty of
Payment. (a) Except with respect to any claims related to the failure of
Landlord to (i) pay the Allowance in accordance with the terms and
provisions of this Lease, (ii) comply with the terms and provisions of
Article XXII, and (iii) deliver the First Expansion Space or the Second
Expansion Space in the manner and in the time periods specified in
Article XVIII or Article XIX, as the case may be, in each case, after
the expiration of any applicable grace, notice and cure periods, which
claims shall not be limited by this Section 12.3, Tenant shall look solely
to Landlord's estate and interest in the Unit for the satisfaction of any
right of Tenant for the collection of a judgment or other judicial
process or arbitration award requiring the payment of money by
Landlord, and no other property or assets of Landlord, Landlord's
agents, incorporators, subscribers, shareholders, officers, directors,
partners, principals (disclosed or undisclosed) or affiliates, whether
directly or through Landlord or through any receiver, assignee, trustee
in bankruptcy or through any other Person, shall be subject to levy,
lien, execution, attachment, or other enforcement procedure for any
liability of Landlord to Tenant under this Lease or under law.
(b) Landlord acknowledges that any claims by Tenant relating to
the failure of Landlord to pay the Allowance in accordance with the
terms and provisions of this Lease are guaranteed by that certain
Limited Guaranty of Payment, dated as of the date hereof, by Canadian
Imperial Bank of Commerce for the benefit of Tenant, a form of which
is attached hereto as Exhibit W.
SECTION XII.4 Landlord Default. Landlord shall in no event be in
default in the performance of any of Landlord's obligations hereunder
unless and until it has failed to perform such obligation within 5
Business Days for any monetary defaults (unless a longer period of
time is specified herein for Landlord's obligations, in which case such
longer period shall apply) and 30 days for non-monetary defaults
(unless a longer period of time is specified herein for Landlord's
obligations, in which case such longer period shall apply) after receipt
of written notice of such failure from Tenant; provided, however, that
if the nature of such failure is such that more than 30 days are required
for its cure, Landlord shall not be in default hereunder if Landlord
commences to cure such default within such 30 day period and
thereafter prosecutes such cure to completion with reasonable
diligence. In any event, but subject to Section 12.1, Tenant's sole
remedy for breach of this Lease by Landlord shall be an action for
damages, injunction or specific performance. Except as expressly
provided herein, Tenant shall have no right to terminate this Lease on
account of any breach or default by Landlord.
SECTION XII.5 Withholding Consent. In no event shall any
Landlord Party be liable for any loss, injury or damage (including
indirect, consequential or punitive damages) claimed by Tenant or any
Person claiming through or under Tenant in connection with the failure
or refusal by any Landlord Party to grant its consent or approval with
respect to any matter as to which any of them are entitled to give their
consent or approval pursuant to this Lease, unless, with respect to the
liability of Landlord only, such loss, injury or damage was due to
Landlord's acts of failure to act in contravention of this Lease (but even
in such event, Tenant shall not be entitled to any indirect, consequential
or punitive damages unless Landlord withheld or delayed its consent in
bad faith, willfully or for no good business purpose). If any Landlord
Party withholds or delays its consent or conditions its consent and
Tenant believes that any such party did so unreasonably, Tenant may
prosecute an action for declaratory relief to determine if such party
properly withheld, delayed or conditioned its consent, but Tenant
waives and discharges (except to the extent set forth in the first
sentence of Section 12.5) any claims it may have against such party for
damages arising from such party's withholding, delaying or
conditioning its consent. In any such action, each party shall bear its
own attorneys' fees.
SECTION XII.6 Reservation of Certain Rights by Landlord.
Landlord reserves the right, and Tenant shall permit Landlord (or the
Board of Managers with respect to Common Elements), without any
of the same constituting an eviction and without incurring liability to
Tenant therefor, (a) to install, erect, use and maintain, repair and
replace pipes, ducts and conduits in and through the Premises;
provided, however, that Landlord shall disguise, conceal or camouflage
all work that is not a repair or replacement and with respect to all
repairs and replacements, Landlord shall, to the extent commercially
practicable (and Landlord shall use all reasonable efforts to cause the
Board of Managers to), disguise, conceal or camouflage the pipes,
ducts and conduits; (b) to change the arrangement and/or location of
public entrances, passageways, doors, doorways, corridors, elevators,
stairs, toilets or other public parts of the Unit or the Common Areas of
the Building; (c) to change the Building name or address; and (d) to
impose such controls as it deems reasonably prudent with respect to
access to the Building by visitors generally; provided that with respect
to the preceding clauses (b) and (d), Landlord agrees to take (and to
use all reasonable efforts to cause the Board of Managers to take) any
such actions in a uniform and non-discriminatory manner with respect
to the occupants of the Building.
SECTION XII.7 Entry by Landlord.
(a0 Landlord, the Board of Managers and their respective agents
and contractors shall have the right to enter or pass through the
Premises: (i) to examine and show Premises to actual and prospective
lenders, Senior Interest Holders and purchasers and, during the last 18
months of the Term, prospective lessees of the Unit, (ii) to conduct
such activities as are incidental to the operation and maintenance of,
and to make repairs and alterations in, the Premises, the Unit and/or the
Building and their respective systems, facilities and equipment, (iii) to
remove any violation of Law noted or issued against the Building, the
Unit, the Premises or any part thereof and (iv) to read and maintain
utility meters located therein; provided, however, that any such entry
pursuant to clauses (i) and (ii) above shall be during Business Hours.
Any entry by Landlord shall be made on reasonable advance oral notice
and, at Tenant's request, Landlord shall be accompanied by an agent of
Tenant, except in emergency situations where no such notice and/or
supervision shall be required. In exercising its rights under this Section
12.7, Landlord shall use, and shall use reasonable efforts to cause the
Board of Managers to use, reasonable efforts to avoid unreasonable
interference with the normal conduct of Tenant's business in the
Premises. Landlord and the Board of Managers each shall have a pass
key (or similar entry device) to the Premises which may only be used
with Tenant's permission, except in the case of an emergency, and shall
be allowed to bring materials and equipment into the Premises as
required in connection with maintenance, repairs and alterations,
without any liability to Tenant and without any reduction of Tenant's
obligations.
(b0 If, during the last month of the Term, Tenant has removed all
or substantially all of Tenant's Property from the Premises, Landlord,
without notice to Tenant, may immediately enter the Premises and
alter, renovate and decorate the same, without liability to Tenant and
without reducing or otherwise affecting Tenant's obligations hereunder.
SECTION XII.8 Obstructions of Light or View; Closures. If at any
time (a0 any windows of the Building or the Unit (including the
Premises) are temporarily darkened, or the light, air or view therefrom
is obstructed temporarily by reason of any repairs, improvements,
maintenance or cleaning in or about the Building or permanently by
reason of a requirement of Law or the construction of any structure
that may be erected on lands in the vicinity of the Building or (b) any
part of the Building, other than the Premises and any part of the
Building required for reasonable access to the Premises or required for
Landlord to perform any of its obligations hereunder, is temporarily or
permanently closed or inoperable, the same shall be without liability to
Landlord or the Board of Managers and without any reduction or
diminution of Tenant's obligations under this Lease and shall not be
deemed to constitute an eviction, except to the extent such obstruction
and/or closure prevents Tenant from reasonably conducting its business
at the Premises. To the extent such is within Landlord's control,
Landlord covenants to use all reasonable efforts to (or to cause the
Board of Managers to) minimize any such obstruction or closure and
to minimize any interference with the conduct of Tenant's business at
the Premises.
ARTICLE XIII
SUBORDINATION; ESTOPPEL CERTIFICATES
SECTION XIII.1 Subordination. Subject to the provisions of that
certain Subordination, Nondisturbance and Attornment Agreement
executed and delivered by and among Landlord, Tenant and the Board
of Managers in connection with the execution of this Lease (the
"Nondisturbance Agreement"), the form of which is attached as Exhibit
K hereto, this Lease, and all rights of Tenant under it, are subordinate
and subject to the Condominium Documents, the Ground Lease, and
all present and future ground, master or operating leases, but excluding
any leases of the Unit (including the Premises), and any and all present
and future mortgages, security interests or other security documents
upon or affecting the Unit including the Premises and to all advances
thereunder and all renewals, replacements, modifications, amendments,
consolidations and extensions thereof (all of the foregoing, collectively,
the "Senior Interests," and holders of Senior Interests shall be referred
to as "Senior Interest Holders"), unless any Senior Interest Holder
elects, by written notice to Tenant, that this Lease shall be superior to
such Senior Interest; provided that with respect to any mortgage,
security interest or security document affecting the Unit and including
the Premises, and any renewals, replacements, modifications,
amendments, consolidations and extensions thereof, such Senior
Interest Holder delivers to Tenant a nondisturbance and recognition
agreement which shall be reasonably acceptable to Tenant and such
Senior Interest Holder (it being agreed that such agreement shall be
deemed reasonable if it contains such terms and provisions as are
customary for similar tenants of Comparable Buildings). This Section
13.1 shall be self-operative and no further instrument of subordination
shall be required. In confirmation of such subordination, Tenant shall
within 20 days of demand therefor and after the execution of the
nondisturbance agreement, execute, acknowledge and deliver any
instrument that Landlord, the Board of Managers, any Senior Interest
Holder or any of their respective successors in interest may (in the form
required by the Senior Interest Holder requesting the same) request to
evidence such subordination; provided that such instrument is in a form
customarily delivered in connection with effectuating subordination
provisions, does not increase Tenant's Base Rent or Additional Rent
hereunder and does not materially adversely affect any of Tenant's
rights hereunder or materially increase any of Tenant's obligations or
decrease any of Tenant's remedies under this Lease.
SECTION XIII.2 Attornment. The Board of Managers (as agent for
the unit owners in the Condominium), any other unit owners in the
Condominium or any Senior Interest Holder who succeeds to the rights
of Landlord under this Lease, whether through exercise of remedies or
by operation of law, is sometimes referred to herein as a "Successor
Landlord". Upon a Successor Landlord's succession to the rights of
Landlord under this Lease, at the option of the Successor Landlord,
Tenant shall, subject to the provisions of any nondisturbance or other
agreement which may have been previously executed and delivered
between the Successor Landlord and Tenant, attorn to and recognize
the Successor Landlord as Tenant's landlord under this Lease and shall
promptly execute and deliver any additional instrument that such
Successor Landlord may reasonably request to evidence the
attornment. Upon attornment, this Lease shall continue in full force
and effect and as a direct lease between the Successor Landlord and
Tenant upon all of the terms, conditions and covenants as are set forth
in this Lease.
SECTION XIII.3 Rights and Requirements of Senior Interest Holders.
If any Senior Interest Holder requires any modification of this Lease,
Tenant shall, at Landlord's request, promptly execute, acknowledge
and deliver to Landlord instruments in form satisfactory to Landlord
effecting such modification, provided that such modification does not
increase Tenant's Base Rent or Additional Rent hereunder or materially
adversely (a) affect any of Tenant's rights hereunder or (b) increase any
of Tenant's obligations or decrease any of Tenant's remedies under this
Lease. If any act or omission of Landlord would give Tenant the right,
immediately or after the giving of notice and/or a lapse of time, to
cancel or terminate this Lease, or to claim a partial or total eviction,
Tenant shall not exercise such right until: (i) it has given written notice
of the act or omission to Landlord, the Board of Managers (at its
address specified in Section 16.13) and each Senior Interest Holder
whose name and address had been furnished to Tenant, which notice
shall specifically refer to this Section 13.3 and shall describe Landlord's
default with reasonable detail, specifying the section of this Lease as to
which Landlord is in default, and (ii) either (A) a reasonable period for
remedying the act or omission shall have elapsed following the giving
of such notice and no remedy shall have been commenced or (B) a cure
having been timely commenced ceases to be prosecuted with diligence
and continuity; provided, however, that in no event will such time
exceed the time period, if any, provided in this Lease. If within such
reasonable period, the Board of Managers or such Senior Interest
Holder gives Tenant notice of its intention to remedy the act or
omission and promptly thereafter commences and diligently prosecutes
the required remedial action to completion within the prescribed time
period, Tenant shall have no right to terminate this Lease on account of
the act or omission.
SECTION XIII.4 Estoppel Statements. Tenant shall, within 10 days
following receipt of Landlord's request to do so, execute, acknowledge
and deliver to Landlord a statement in writing certifying to those facts
for which certification has been requested by Landlord or any current
purchaser or Senior Interest Holder, including without limitation, that
(a) this Lease is unmodified and in full force and effect (or if there have
been modifications, that the same is in full force and effect as modified
and describing all such modifications), (b) the dates to which Rent,
Additional Rent and other charges payable hereunder have been paid, if
any, and (c) whether or not to the best knowledge of Tenant, Landlord
is in default in the performance of any covenant, agreement, obligation
or condition contained in this Lease and, if so, specifying in reasonable
detail each such default of which Tenant may have knowledge. The
form of the statement attached hereto as Exhibit L is hereby approved
by Tenant for use pursuant to this Section; provided, however, at
Landlord's option, Landlord shall have the right to use any other form
for such purpose. Any statement delivered by Tenant pursuant to this
Section may be relied upon by any current or prospective purchaser of
the Unit or the Building, any Senior Interest Holder and any assignees
thereof. At Tenant's written request, Landlord shall provide Tenant an
estoppel statement in form and content reasonably satisfactory to
Landlord and Tenant, which shall contain such statements and
reservations as may be customary in estoppel statements of landlords of
Comparable Buildings.
ARTICLE XIV
ASSIGNMENTS AND SUBLEASES
SECTION XIV.1 Prohibition. Tenant shall not mortgage, pledge,
encumber or otherwise hypothecate this Lease or the Premises or any
part thereof in any manner whatsoever without complying with the
provisions of this Article XIV, and any attempt to do so shall be void
and a material breach of this Lease. Tenant shall not, whether
voluntarily, involuntarily, by operation of law or otherwise: (a) assign
or otherwise transfer this Lease; or (b) sublet the Premises or any part
thereof, without in each instance complying with the requirements of
this Article XIV. Any attempt by Tenant to assign or transfer this
Lease (or its term and estate), or sublet the Premises or any part
thereof, without complying with the requirements of this Article XIV
shall be void and a material breach of this Lease. Use or occupancy of
the Premises by a licensee, concessionaire, or any Person other than
Tenant is a sublease subject to this Article XIV. Notwithstanding the
foregoing, Tenant shall have the right without Landlord's consent or
otherwise complying with this Article XIV at any time and from time
to time to assign this Lease or sublease all or a portion of the Premises
to an Affiliate of Tenant in accordance with Section 14.8 or to an
Occupant pursuant to Section 14.9.
SECTION XIV.2 Corporate and Partnership Transactions. If Tenant
is a corporation, a dissolution of Tenant or Tenant's merger or
consolidation with or into another Person shall be deemed an
assignment of this Lease subject to this Article XIV, unless the
successor has a Net Worth in an amount no less than the Minimum Net
Worth or Tenant provides a letter of credit as contemplated in Article
XXIV immediately prior to and after such merger or consolidation;
provided, however, that a principle purpose of such merger or
consolidation is not the assignment of this Lease in contravention of
this Article XIV. Proof satisfactory to Landlord of such net worth shall
be delivered to Landlord at least 30 days prior to the effective date of
any such transaction. If Tenant is a partnership, a dissolution of the
partnership or a transfer of the controlling interest in Tenant (including
the admission of new partners or withdrawal of existing partners having
a controlling interest) shall be deemed an assignment of this Lease
subject to the provisions of this Article XIV, regardless of whether the
transfer is made by one or more transactions, or whether one or more
Persons hold the controlling interest prior to the transfer or afterwards.
Landlord expressly agrees that, if Tenant is a corporation, a transfer of
the voting stock of Tenant or the parent corporation of Tenant by one
or more Persons (whether in a single transaction or in a series of related
or unrelated transactions) shall not be deemed an assignment of this
Lease subject to this Article XIV.
SECTION XIV.3 Landlord's Recapture Rights.
XIV.3.1 Sublease of Part of Premises. Whenever Tenant desires to
sublease less than All or Substantially All of the Premises (for purposes
of this Article XIV "All or Substantially All of the Premises" shall, at
any time, mean any space in excess of 75% of the Premises Area at
such time) for any period of time, Tenant shall give notice thereof to
Landlord, which notice shall comply with the provisions of Section
14.4 and shall be accompanied by a floor plan of the portion of the
Premises to be sublet and a statement of the proposed commencement
date of such sublease (the "Target Date"). The notice shall constitute
an offer from Tenant (the "Offer") for Landlord, at Landlord's option,
exercisable in Landlord's sole discretion, to terminate this Lease with
respect to the space covered by the Offer. Landlord may exercise this
option by notice to Tenant at any time within 10 Business Days after
receipt of the Offer, and during this 10 Business Day period, Tenant
shall not sublet the space covered by the Offer to any Person. The
Target Date shall be not earlier than 45 days and not later than 365
days after the date of the Offer. If Landlord exercises its option to
terminate this Lease with respect to the space covered by the Offer,
then this Lease shall terminate, as to that space, on the Target Date set
forth in such Offer but Landlord, as a continuing obligation, shall pay
Tenant the Net Sublease Profits in accordance with the provisions of
Section 14.6 hereunder and this provision shall survive any whole or
partial termination of this Lease. The Rents shall be prorated and paid
through the termination date. Thereafter the Base Rent shall be
reduced by the amount of Base Rent attributable to the space covered
by the Offer, and Tenant's Share shall be reduced in the proportion that
the Rentable Area of the space covered by the Offer bears to the
Premises Area. If Landlord does not exercise its option to terminate
this Lease with respect to the space covered by the Offer, Tenant may
sublease the space covered by such Offer; provided, however, that (a)
Tenant must obtain Landlord's consent (or deemed consent in
accordance with Section 14.4 below) pursuant to Section 14.4, (b) the
commencement date of such sublease shall not be earlier than the
Target Date set forth in such Offer, (c) Tenant must comply with the
applicable provisions of this Article XIV, including Section 14.5.2, and
(d) Net Sublease Profits shall be split as set forth in Section 14.6.
XIV.3.2 Sublease of All of Premises; Assignment. Whenever (a)
Tenant desires to sublease All or Substantially All of the Premises for
any period of time, or (b) Tenant desires to assign this Lease, Tenant
shall give notice thereof to Landlord, which notice shall comply with
the provisions of Section 14.4 and shall be accompanied by a statement
of the proposed commencement date of such sublease or the proposed
effective date of such assignment, as the case may be (in either case, the
"Target Date"). The notice shall constitute an offer from Tenant (the
"Offer") for Landlord, at Landlord's option, exercisable in Landlord's
sole discretion, to terminate this Lease.
XIV.3.2.1 Landlord may exercise this option by notice to Tenant at
any time within 10 Business Days after receipt of the Offer, and during
this 10 Business Day period Tenant shall not assign this Lease or sublet
the space covered by the Offer to any Person. The Target Date shall
be not earlier than 45 days and not later than 365 days after the date of
the Offer.
XIV.3.2.2 If Tenant proposes in the Offer either to assign this Lease
or to sublet All or Substantially All of the Premises, and Landlord
elects to terminate this Lease, then this Lease shall terminate on the
Target Date set forth in such Offer, and the Rents shall be prorated and
paid through the termination date, except that Landlord, as a
continuing obligation, shall pay the Net Sublease Profits and Net
Assignment Profits in accordance with the provisions of Section 14.6
hereunder.
XIV.3.2.3 If the Offer was made under clause (a) of Section 14.3.2
and Landlord does not exercise its option to terminate this Lease,
Tenant may sublease All or Substantially All of the Premises; provided
however, that (a) Tenant must obtain Landlord's consent pursuant to
Section 14.4 (or deemed consent in accordance with Section 14.4
below), (b) the commencement date of such sublease shall not be
earlier than the Target Date set forth in such Offer, (c) Tenant must
comply with the applicable provisions of this Article XIV, including
Section 14.5.2 and (d) Net Sublease Profits shall be split as set forth in
Section 14.6.
XIV.3.2.4 If the Offer was made under clause (b) of Section 14.3.2
and Landlord does not exercise its option to terminate this Lease,
Tenant may assign this Lease; provided, however, that (a) Tenant must
obtain Landlord's consent pursuant to Section 14.4 and (b) the effective
date of such assignment is no earlier than the Target Date set forth in
such Offer.
SECTION XIV.4 Consent by Landlord. Tenant may not enter into
any sublease or assignment without the prior written consent of
Landlord, which consent shall not be unreasonably withheld, delayed or
conditioned. Landlord's consent shall be deemed to have been given if
Landlord does not accept Tenant's offer pursuant to Section 14.3.1 or
Section 14.3.2 unless Landlord sets forth in reasonable detail the
reasons why the proposed subtenant or assignee was rejected within
the 10 Business Day period provided by Section 14.3.1 and Section
14.3.2.1 above; provided that the 10 Business Day period shall not
commence until Landlord has received all of the materials and
information required in accordance with the last paragraph of this
Section 14.4 but only if Landlord's request is promptly made after
initial delivery. By way of example but not as a limitation, withholding
such consent shall be deemed reasonable if one or more of the
following conditions apply:
(a) The business of the proposed assignee or subtenant or its use
of the Premises, or the relevant portion thereof, is not consistent with
the Permitted Use or, in Landlord's reasonable judgment, in keeping
with the standards of Comparable Buildings; or
(b) The proposed assignee or subtenant is not a reputable Person
of good character and, as to an assignee, with sufficient assets and
income, in Landlord's reasonable judgment, to bear the financial
responsibilities under the proposed assignment or Landlord has not
been furnished with reasonable proof thereof; or
(c) The proposed assignee or sublessee, or any Person who
directly or indirectly, controls, is controlled by, or is under common
control with, the proposed assignee or sublessee, is an occupant of any
part of the Building at the time Tenant requests such consent; or
(d) The proposed assignee or sublessee negotiated with Landlord
to lease space in the Unit (or with other unit owners to lease any other
space in the Building) within 6 months prior to the time Tenant
requests such consent; or
(e) The form of the proposed sublease does not comply with the
applicable provisions of this Article XIV; or
(f) Excluding Occupants pursuant to Section 14.9 below, there
would be more than two (2) Persons per floor occupying the Premises
with separate ingress and egress, including Tenant and the proposed
subtenant, but in any event in accordance with the Condominium
Documents; provided that in the event more than two (2) Persons per
floor are permitted by the Condominium Documents to occupy the
Premises, Landlord agrees to enforce its rights under the Condominium
Documents in accordance with Section 16.25 below and, in any event,
to seek the approval of the Condominium Board.
Whenever Tenant seeks Landlord's consent under this Section 14.4,
Tenant shall request the consent of Landlord in writing; and such
request shall be accompanied by, in addition to those items required by
Section 14.3, (i) an executed copy of the proposed sublease or
assignment as to which Landlord's consent is sought and, in the case of
an assignment, an executed copy of the assumption agreement required
by Section 14.5.1, (ii) a statement setting forth in reasonable detail the
identity of the proposed sublessee or assignee, as the case may be, and
the nature of its business, (iii) financial statements or other evidence,
reasonably satisfactory to Landlord, of the financial condition of the
proposed assignee and all other current financial information with
respect to the proposed assignee in Tenant's possession, and (iv) any
other information reasonably requested by Landlord.
SECTION XIV.5 Miscellaneous.
XIV.5.1 Miscellaneous. No assignment of this Lease shall be valid or
binding on Landlord unless and until the assignee executes and delivers
to Landlord an agreement in form and substance satisfactory to
Landlord, whereby the assignee assumes and agrees to be bound by all
of the provisions of this Lease and to perform all of the obligations of
Tenant hereunder. Notwithstanding any assignment or sublease to any
other Person, Tenant shall remain fully liable for the payment of Rents
and for the performance of all the other obligations of Tenant contained
in this Lease. Any act or omission of an assignee or subtenant or any
Person claiming under or through any of them that violates this Lease
shall be deemed a violation of this Lease by Tenant. The consent by
Landlord to any assignment or sublease shall not relieve Tenant or any
Person claiming through or under Tenant of the obligation to obtain the
consent of Landlord, pursuant to the provisions of this Article XIV, to
any future assignment or sublease. If Landlord declines to give its
consent as required under this Lease to any proposed assignment or
sublease under circumstances where Landlord is entitled to do so under
this Lease, or if Landlord exercises any of its options under Section
14.3, Tenant shall indemnify, defend (with counsel reasonably
satisfactory to Landlord) and hold Landlord harmless against and from
any and all loss, liability, damages, costs and expenses (including
reasonable attorneys' fees and disbursements) resulting from any claims
that may be made against Landlord by any Person that claims it was
damaged by Landlord's actions, including any proposed assignee or
sublessee, or any broker or other Person claiming a commission or
similar compensation in connection with the proposed assignment or
sublease.
XIV.5.2 General Sublease Provisions. With respect to each and every
sublease authorized by Landlord under the provisions of this Article
XIV, it is further agreed that:
(a) The term of the sublease must end no later than one day prior
to the last day of the Term;
(b) Each sublease shall provide that (i) it is subject and subordinate
to this Lease and all interests to which this Lease is subordinate
(including, without limitation, the Ground Lease); (ii) Landlord may
enforce the provisions of the sublease, including collection of rents; (iii)
on termination of this Lease or surrender of this Lease with Landlord's
written consent or re-entry or repossession of the Premises by
Landlord, Landlord may, at its option, take over all of the right, title
and interest of Tenant, as sublessor, under such sublease, and such
sublessee shall, at Landlord's option, attorn to Landlord but that
nevertheless Landlord shall not be: (A) liable for any previous act or
omission of Tenant under such sublease; (B) subject to any defense or
offset previously accrued in favor of the sublessee against Tenant; (C)
bound by any previous modification of such sublease made without
Landlord's written consent or by any previous prepayment of more
than 1 month's rent; or (D) liable for the return of any deposit, rental
security or any other sums deposited by such sublessee with Tenant
except to the extent such sums have been paid over to Landlord; and
(c) Each sublease shall include a provision (i) requiring the
subtenant thereunder to waive its right of recovery against Landlord,
Tenant and the Board of Managers in substantially the same manner as
Landlord and Tenant have waived such right pursuant to Paragraph 5
of Exhibit I, (ii) requiring the subtenant thereunder to secure an
appropriate clause in, or an endorsement upon, each property insurance
policy insuring the Improvements in the subleased premises or such
subtenant's property therein pursuant to which the insurance company
agrees that such subtenant's waiver of its and its insured's right of
recovery against Landlord, Tenant and the Board of Managers shall not
affect the validity or enforceability of the subtenant's insurance
coverage and (iii) providing that if such a clause or endorsement is
obtainable only upon payment of an additional premium, the subtenant
shall obtain such clause or endorsement and pay such additional
premium.
Any material modification or amendment to a sublease of the Premises
shall be deemed a proposed sublease subject to the terms of this Article
XIV. Tenant shall reimburse Landlord on demand for any reasonable
costs that Landlord may incur in connection with any proposed
assignment or sublease, including, without limitation, the costs of
making investigations as to the acceptability of the proposed assignee
or subtenant, and legal fees and expenses incurred in connection with
any request for consent. Tenant shall not include the rent at which the
Premises or any portion thereof is being offered in any advertisement of
such space, unless the rent being offered by Tenant for the Premises (or
any portion thereof) is greater than the then current Rent of the
Premises (including, without limitation, any Base Rent and Additional
Rent due hereunder).
SECTION XIV.6 Additional Charges.
(a) If Landlord shall consent to any assignment or subletting of
this Lease, Tenant shall, in consideration therefor, pay to Landlord, as
Additional Rent, an amount equal to 50% of the Net Assignment
Profits (in the case of an assignment) or 50% of the Net Sublease
Profits (in the case of a sublet), which amount shall be paid to Landlord
within 10 days of Tenant's receipt thereof.
(b) If Landlord elects to exercise its right to recapture pursuant to
Section 14.3, Landlord shall pay to Tenant an amount equal to 50% of
the Net Assignment Profits (in the case of an assignment) or 50% of
the Net Sublease Profits (in the case of a sublet). Any such payments
shall be made within ten (10) days after Landlord's receipt of any such
Net Assignment Profits and/or Net Sublease Profits. This obligation
shall survive termination of this Lease.
(c) The "Net Assignment Profits" shall mean an amount equal to
(a) all sums and other consideration paid to Tenant (or paid to
Landlord in the case of Landlord's recapture; it being understood that
in the case of a recapture by Landlord, the Net Sublease Profits or Net
Assignment Profits, as the case may be, shall be the Net Sublease
Profits or Net Assignment Profits had Tenant gone forward with its
proposed assignment and/or sublet) by an assignee for or in connection
with such assignment (including sums paid for the purchase or rent of
Tenant's Property and all or any part of the Improvements less, in the
case of a sale thereof, an amount equal to the fair market value of
Tenant's Improvements) less (b) Expenses incurred in connection with
such assignment (for purposes of this Article XIV, "Expenses" in
connection with an assignment or sublease shall mean all brokerage
commissions, legal, accounting and other professional fees, marketing
and advertising costs, takeover expenses and cash contributions or
alteration expenses incurred, or to be incurred, by Tenant (or incurred
by Landlord in the case of Landlord's recapture) (including, without
limitation, lease takeover and moving expenses and the cost of all
subtenant improvements and other tenant inducements, to the extent
same are actually paid by Tenant or Landlord, as the case may be) in
connection with such assignment or sublease). The "Net Sublease
Profits" shall mean the excess for any period during the term of the
relevant sublease (but in no event later than September 30, 2013) of (i)
the sum of (A) all rent, additional charges and other consideration paid
to Tenant (or paid to Landlord in the case of Landlord's recapture; it
being understood that in the case of a recapture by Landlord, the Net
Sublease Profits or Net Assignment Profits, as the case may be, shall be
the Net Sublease Profits or Net Assignment Profits had Tenant gone
forward with its proposed assignment and/or sublet) by a subtenant for
or in connection with such subletting (including consideration paid for
the purchase or rent of Tenant's Property and all or any part of the
Improvements less, in the case of a sale thereof, an amount equal to the
fair market value of Tenant's Improvements) (but excluding therefrom
any sums received as a security deposit under any such sublease) less
(B) Expenses incurred in connection with such subletting over (ii) the
Rents paid for the subleased space.
SECTION XIV.7 Acceptance of Rent. If this Lease is assigned,
whether or not in violation of the provisions of this Lease, Landlord
may collect rent from the assignee. If the Premises or any part thereof
are sublet, whether or not in violation of this Lease, Landlord may,
after default by Tenant and expiration of Tenant's time to cure such
default, collect rent from the sublessee. In either event, Landlord may
apply the net amount collected to payment of Rents, but no such
assignment, subletting, or collection shall be deemed a waiver of any of
the provisions of this Lease, an acceptance of the assignee or sublessee
as a lessee, or a release of Tenant from the performance by Tenant
under this Lease.
SECTION XIV.8 Affiliates and Successors. Notwithstanding
anything to the contrary contained in this Article XIV, Tenant may
assign this Lease and sublease all or any part of the Premises to any
Affiliate of Tenant without obtaining Landlord's consent but subject to
all of the other provisions of this Article XIV except for Section 14.3
and Section 14.6 which shall not apply. For purposes of this Article
XIV, "Affiliate of Tenant" shall mean (a) any Person directly or
indirectly controlling, controlled by, or under common control with,
Tenant, or (b) any Person in which Tenant owns at least 51% of the
equity and voting interests (for purposes of this definition "control"
(including with correlative meanings, the terms "controlling,"
"controlled by" and "under common control with"), as applied to any
Person, means the possession, directly or indirectly, of the legal right to
direct or cause the direction of the management and policies of that
Person, whether through the ownership of voting securities, by
contract, or otherwise).
SECTION XIV.9 Desk Space Arrangements. Notwithstanding
anything to the contrary contained in this Article XIV, Tenant shall
have the right, without obtaining the Landlord's or the Board of
Managers' consent, to permit the use or occupancy of desk space in no
more than 25 % of the usable square footage of the Premises (exclusive
of the First Expansion Space and the Second Expansion Space, if any)
by persons or entities (collectively defined as the "Occupants") without
such arrangement being deemed a sublet or assignment or otherwise
subject to the provisions in this Article XIV (it being agreed that if
Tenant exercises the First Expansion Option or the Second Expansion
Option, such Occupants may be located on the 14th floor); provided,
that
(i) such arrangement will terminate upon termination of this Lease
by Landlord for Tenant's default under this lease beyond notice and
time to cure;
(ii) no Occupant's use of the Premises shall be a Prohibited Use;
(iii) except for the right permitted in this Section 14.9, in no event
shall the use of any portion of the Premises by an Occupant create or
be deemed to create any right, title or interest in or to the Premises;
(iv) while the portion of the Premises occupied by an Occupant
may be separated by demising walls of a temporary or permanent
nature, ingress and egress to such space must be through the Premises
only and not directly to the elevator lobby;
(v) Tenant uses all reasonable efforts to assure that all Occupants
shall be of similar appearance and demeanor to those occupying the
Premises as employees or Affiliates of Tenant;
(vi) there shall be no separate identification of any Occupant in the
lobby of the Building (other than listings in the Building Directory and
in the elevator lobby);
(vii) each Occupant (a) shall be either a member of the financial
service industry or a provider of services to the financial service
industry, and (b) shall be receiving services from or deriving economic
benefit from, or rendering services to or supplying economic benefit to,
Tenant, including brokers clearing their securities transactions through
Tenant;
(viii) the primary business relationship between Tenant and each
Occupant shall relate to the financial services industry and not the use
or occupancy of desk space; and
(ix) Occupant will satisfy the leasing standards set forth in Section
18(b) 1-3 and 5 of the Declaration.
SECTION 14.11 Transaction with the XXX. (a) The Landlord
acknowledges that in order to receive Further Benefits (as defined
below), Tenant is planning to sublease the Premises to The Industrial
Development Agency of the City of New York (the "XXX") and the
XXX will then sub-sublease the Premises to Tenant. Tenant covenants
that the sublease to the XXX will not give the XXX any right to occupy
the Premises at any time.
(b) Before entering into the sublease or sub-sublease transaction
described above, Tenant will obtain the consent of Landlord, which
consent shall not be unreasonably withheld or delayed. Landlord
agrees (i) to deliver evidence of its consent to such sublease and sub-
sublease in the form required by the XXX subject to such terms and
conditions as are reasonably satisfactory to Landlord and Tenant and
(ii) to waive the applicability of Section 14.2, Section 14.3, Section
14.4(a),(b),(e) and (f) (including item (iii) in the last paragraph of
Section 14.4), Section 14.5.2(b)(ii)-(iii), Section 14.5.2(c), Section
14.6, and Section 14.7 of the Lease to such sublease and sub-sublease
between Tenant and the XXX; provided that (a) the consent
contemplated in the first sentence of this Section 14.11(b) is given and
(b) Tenant delivers to Landlord an indemnity in form and substance
reasonably satisfactory to Landlord and Tenant which shall indemnify
and hold harmless Landlord and its officers, directors, agents,
principals, and employees against any loss, cost, liability, claims,
damages and expenses incurred in connection with or arising from the
sublease or sub-sublease between Tenant and the XXX.
ARTICLE XV
CONDITIONAL LIMITATIONS
SECTION XV.1 Conditional Limitations. The Lease and the estate
hereby granted are subject to the limitations that (each of the following
being hereinafter referred to as an "event of default," a "default," an
"Event of Default," or a "Default," as the context so requires):
XV.1.1 If Tenant shall fail to pay any portion of Base Rent or
Additional Rent when due and such failure shall continue for 5
Business Days after notice thereof by Landlord to Tenant;
XV.1.2 If Tenant shall fail to observe and perform any provision of
this Lease (other than those specifically mentioned in this Section 15.1)
to be observed or performed by Tenant and such failure continues for
30 days after notice thereof by Landlord to Tenant, unless, if the nature
of such failure is such that it cannot reasonably be cured within such 30
day period, (a) within that aforesaid 30 day period Tenant notifies
Landlord that it intends to cure such failure and actually commences to
cure such failure, and (b) Tenant thereafter diligently proceeds to
complete such cure within a reasonable time not to exceed 90 days;
XV.1.3 [Intentionally Deleted.]
XV.1.4 If Tenant shall be unable to, or shall admit in writing its
inability to, pay its debts as they become due;
XV.1.5 If Tenant shall commence or institute any case, proceeding or
other action (a) seeking relief on its behalf as debtor or to adjudicate it
a bankrupt or insolvent, or seeking reorganization, arrangement,
adjustment, winding-up, liquidation, dissolution, composition or other
relief with respect to it or its debts under any existing or future Law of
any jurisdiction, domestic or foreign, relating to bankruptcy,
insolvency, reorganization or relief of debtors, or (b) seeking
appointment of a receiver, trustee, custodian or other similar official for
it or for any part of its property;
XV.1.6 If Tenant shall make a general assignment for the benefit of
creditors;
XV.1.7 If any case, proceeding or other action shall be commenced or
instituted against Tenant (a) seeking to have an order for relief entered
against Tenant as debtor or to adjudicate it a bankrupt or insolvent, or
seeking reorganization, arrangement, adjustment, winding-up,
liquidation, dissolution, composition or other relief with respect to it or
its debts under any existing or future Law of any jurisdiction, domestic
or foreign, relating to bankruptcy, insolvency, reorganization or relief
of debtors, or (b) seeking appointment of a receiver, trustee, custodian
or other similar official for it or for all or any part of its property, which
(i) results in any such entry of an order for relief, adjudication of
bankruptcy or insolvency or such an appointment or the issuance or
entry of any other order having a similar effect, or (ii) is not contested,
in good faith, by Tenant within 14 Business Days of the date such case,
proceeding or other action is instituted (or such shorter time period as
may be prescribed by local bankruptcy rule, the bankruptcy court or
other applicable law) or (iii) remains undismissed for a period of 60
days;
XV.1.8 If Tenant shall take any action in furtherance of, or indicating
its consent to, or approval of, any of the acts set forth in Section
15.1.7;
XV.1.9 If, in violation of Article XIV, this Lease shall be hypothecated
or assigned or if the Premises shall be sublet;
XV.1.10 If Tenant shall fail to execute, acknowledge and deliver to
Landlord (a) any statement required under Section 13.4 within the time
periods specified therein or (b) any documents or instruments required
under either Section 13.1 or Section 13.2 within the time periods
specified therein after 10 day written notice to Tenant and 5 Business
Days to cure such failure; or
XV.1.11 If the Premises shall become deserted or abandoned for a
period of 30 consecutive days other than for reasons beyond Tenant's
reasonable control such as Force Majeure or if Tenant fails to take
occupancy of the Premises within 180 days after Substantial
Completion of Landlord's Work, it being agreed that the fact that any
of Tenant's Property remains in the Premises shall not be evidence that
Tenant has not vacated or abandoned the Premises;
then, in any of such events, Landlord may, at any time thereafter, give
notice to Tenant stating that this Lease and the Term shall
automatically expire and terminate on the date specified in such notice,
which date shall be 5 Business Days after the giving of such notice, and
upon the expiration of such 5 Business Day period, this Lease and the
Term and all rights of Tenant under this Lease shall automatically
expire and terminate as if the date on which such 5 Business Day
period expires were the Expiration Date herein definitely fixed, and
Tenant immediately shall quit and surrender the Premises to Landlord.
Notwithstanding anything to the contrary contained herein, if such
automatic termination shall be stayed by operation of law or by order
of any court having jurisdiction over any proceeding described in
Section 15.1.5 or 15.1.7, or by Federal or state statute, then, such
automatic termination shall be effective upon the expiration or lifting of
any such stay, and, if such automatic termination shall not be given
effect (by order of a court having jurisdiction over such proceeding or
otherwise), then, Landlord, to the extent permitted by law or by leave
of such court, shall have the right to terminate this Lease on 5 Business
Days' notice to such trustee or Tenant or Tenant as debtor-in-
possession. Upon the expiration of such 5 Business Day period, this
Lease shall expire as aforesaid.
SECTION XV.2 Remedies and Damages.
XV.2.1 Surrender and Re-Entry. If (a) Tenant shall fail to pay Base
Rent or Additional Rent when due and such failure shall continue for
the number of days specified in Section 15.1 after notice thereof from
Landlord to Tenant or (b) this Lease shall expire and terminate as
provided in Section 15.1, then, in either such case, Tenant shall
immediately quit and peacefully surrender the Premises to Landlord,
and Landlord and its agents may immediately, or at any time thereafter,
without further notice, re-enter the Premises, either by summary
proceedings or by any other applicable action or proceeding or
otherwise, and remove all Persons and property from the Premises.
The removed property may be stored in a public warehouse or
elsewhere at the cost of and for the account of Tenant. The terms "re-
enter," "re-entry" or "re-entered" as used in this Lease shall not be
deemed to be restricted to their technical legal meanings.
If (a) Landlord shall have re-entered the Premises as provided in
Section 15.2.1 or (b) this Lease shall have terminated and expired as
provided in Section 15.1, then, in either such case, Landlord may relet
the Premises from time to time, either in the name of Landlord or
otherwise, to such tenant or tenants, for such term or terms ending
before, on or after the then next succeeding Expiration Date, at such
rental or rentals and upon such other conditions (that may include
concessions and free rent periods) as Landlord may determine;
provided, however, that Landlord shall not be liable for refusal or
failure to relet the Premises, or, in the event of any such reletting, for
refusal or failure to collect any rent due upon any such reletting, and no
such refusal or failure shall operate to relieve Tenant of any liability
under this Lease or otherwise affect any such liability. Landlord may
make such repairs, replacements, alterations, additions, improvements,
decorations and other physical changes in and to the Premises as
Landlord, in its sole discretion, considers advisable or necessary in
connection with any such reletting or proposed reletting, without
relieving Tenant of any liability under this Lease or otherwise affecting
any such liability.
XV.2.2 Waiver of Notice and Redemption. Tenant hereby waives (a)
the service of any notice of intention to reenter; and (b) all rights of
Tenant to redeem the Premises or to restore the operation of this Lease
after Tenant shall have been dispossessed or ejected therefrom by
process of law or under the terms of this Lease or after any expiration
or termination of this Lease, whether such dispossess, ejection,
expiration or termination shall be by operation of law or pursuant to the
provisions of this Lease.
XV.2.3 Damages. If this Lease and the Term shall terminate as
provided in Section 15.1 or if Landlord shall re-enter the Premises as
provided in Section 15.2.1 hereof, then, in either such event:
(a) Tenant shall pay to Landlord all Base Rent and Additional Rent
to the date upon which this Lease and the Term shall have expired or
to the date of re-entry upon the Premises by Landlord, as the case may
be;
(b) Tenant also shall pay to Landlord, as damages, any deficiency
(a "Deficiency") between the Rents for the period that otherwise would
have constituted the unexpired portion of the Term and the net
amount, if any, of rents collected under any reletting effected pursuant
to the provisions of Section 15.2.1 for any part of such period (first
deducting from the rents collected under any such reletting all of
Landlord's expenses in connection with the termination of this Lease,
Landlord's re-entry upon the Premises and such reletting including all
repossession costs, brokerage commissions, attorneys' fees and
disbursements, alteration costs and other expenses of preparing the
Premises for such reletting, without duplication and only to the extent
such expenses have not already been paid to Landlord through prior
court proceedings or otherwise); any such Deficiency shall be paid in
monthly installments by Tenant on the days specified in this Lease for
payment of installments of Base Rent, and Landlord shall be entitled to
recover from Tenant each monthly Deficiency as the same shall arise,
and no suit to collect the amount of the Deficiency for any month shall
prejudice Landlord's right to collect the Deficiency for any subsequent
month by a similar proceeding; and
(c) whether or not Landlord shall have collected any monthly
Deficiency as aforesaid, Landlord shall be entitled to recover from
Tenant, and Tenant shall pay to Landlord on demand in lieu of any
further Deficiency as and for liquidated damages, a sum equal to the
amount by which the Rents for the period that otherwise would have
constituted the unexpired portion of the Term exceeds the then fair
market rental value of the Premises for the same period (first deducting
from such fair market rental value all of Landlord's expenses in
connection with the termination of this Lease, Landlord's re-entry upon
the Premises and reletting costs, if any, including all repossession costs,
brokerage commissions, attorney's fees and disbursements, alteration
costs and other expenses of preparing the Premises for reletting, but
only to the extent such expenses have not already been paid to
Landlord through prior court proceedings or otherwise), both
discounted to present value at the rate of 6% per annum, less the
aggregate amount of Deficiencies theretofore collected by Landlord for
the same period; provided, however, that if, before presentation of
proof of such liquidated damages to any court, commission or tribunal,
the Premises, or any part thereof, shall have been relet by Landlord for
the period that otherwise would have constituted the unexpired portion
of the Term, or any part thereof, the amount of rent reserved upon
such reletting shall be deemed, prima facie, to be the fair market rental
value for the part of the Premises so relet during the term of the
reletting. For purposes of the preceding sentence, the amount of rent
reserved shall be the average of all Rent reserved under the new lease
divided by the number of months of such lease, as discounted to
present value at the rate of 6% per annum.
XV.2.4 Rents from Reletting. If the Premises shall be relet together
with other space in the Unit, the rents collected or reserved under any
such reletting and the expenses of any such reletting shall be equitably
apportioned. Tenant shall not be entitled to any rents collected or
payable under any reletting, whether or not such rents shall exceed the
Rents reserved in this Lease. Nothing contained in this Article XV
shall be deemed to limit or preclude the recovery by Landlord from
Tenant of the maximum amount allowed to be obtained as damages by
any Laws, or of any sums or damages to which Landlord may be
entitled in addition to the damages set forth in Section 15.2.
XV.2.5 Monies Received. Any monies received by Landlord from or
on behalf of Tenant during the pendency of any proceedings between
Landlord and Tenant shall be deemed paid as compensation for the use
and occupation of the Premises, and the acceptance of any such
compensation by Landlord shall not be deemed an acceptance of Rents
or a waiver on the part of Landlord of any rights hereunder.
XV.2.6 Equitable Remedies. Following a breach or threatened breach
by Tenant of any of the provisions hereof, Landlord shall have the right
to seek injunctive relief and the right to invoke any remedy allowed at
law or in equity as if re-entry, summary proceedings and other
remedies were not herein provided.
SECTION XV.3 Waiver of Trial by Jury and Counterclaims.
Landlord and Tenant each waive trial by jury in any action, proceeding
or counterclaim brought by either of them against the other on any
matters arising out of or in any way connected with this Lease, the
relationship of Landlord and Tenant or Tenant's use or occupancy of
the Premises or the operation, maintenance or control of the Building.
Tenant shall not interpose any counterclaim it may otherwise assert in
any summary proceeding whether such summary proceeding is based
on nonpayment of Rents or on Tenant's holding over after expiration of
the Term or on any other basis pursuant to Article 7 of the Real
Property Actions and Proceedings Law of the State of New York,
unless by not interposing such counterclaim Tenant would be barred
from asserting such counterclaim in a separate action or proceeding.
SECTION XV.4 Partial Payment; No Waiver. No payment by Tenant
or receipt or acceptance by Landlord of a lesser amount than the full
Rents due hereunder shall be deemed to be other than a payment on
account, nor shall any endorsement or statement on any check or any
letter accompanying any check or payment be deemed an accord and
satisfaction, and Landlord may accept such check or payment without
prejudice to Landlord's right to recover the balance, treat such partial
payment as a default or pursue any other remedy provided in this Lease
or at law or in equity. If at any time Tenant shall pay Landlord less
than the full amount of Rents then due, Landlord shall have the right to
apply such payment to any item or items of Rents that Landlord, in its
discretion, deems appropriate. No consent or waiver, express or
implied, by Tenant or Landlord of any breach of any obligation of the
other party shall be construed as a consent or waiver to or of any other
breach of the same or any other obligation. The failure of Landlord at
any time to insist upon the strict performance of any obligation of
Tenant or to exercise any right or remedy herein contained (including
the right to make any demand upon Tenant for payment of any
Additional Rent due hereunder) shall not be construed as a waiver or
relinquishment of the performance of such obligation or of the right to
exercise any right or remedy in the future. The receipt or acceptance
by Landlord of Rents or the payment by Tenant of Rents with
knowledge of a breach by the other party of any term of this Lease
shall not be deemed a waiver of such breach. The rights and remedies
of Landlord provided in this Lease for a breach by Tenant are
cumulative and not exclusive, and the exercise by Landlord of any
other right or remedy it may have shall not preclude the concurrent or
subsequent exercise of any other right or remedy it may have pursuant
to this Lease, at law or in equity.
SECTION XV.5 Landlord's Right to Cure. Landlord may, but shall
not be obligated to, cure any default by Tenant under this Lease at any
time after notice and the lapse of any cure period included within the
conditional limitation to which such default relates, without giving
further notice. Whenever Landlord so elects, all costs and expenses
incurred by Landlord in curing any such default, including attorneys'
fees and disbursements and, in the case of a default under Section 5.2,
investigation and remediation costs, together with interest at the
Interest Rate on the amount of costs and expenses so incurred
commencing on the day such costs are paid by Landlord, shall be paid
by Tenant to Landlord as Additional Rent within 20 days of demand.
SECTION XV.6 Effect of Re-Entry. The mere re-entry or taking
possession of the Premises by Landlord shall not be construed as an
election to terminate this Lease.
SECTION XV.7 Payment of Landlord's Expenses. All costs and
expenses, including attorneys' fees (whether or not legal proceedings
are instituted), involved in collecting Rents or enforcing the obligations
of Tenant under this Lease, including the cost and expense of
instituting and prosecuting legal proceedings or recovering possession
of the Premises after breach by Tenant or upon expiration or earlier
termination of this Lease, to the extent such costs and expenses have
not already been paid as a Deficiency or as liquidated damages under
Section 15.2.3, shall be due and payable by Tenant as Additional Rent
within 20 days of demand; provided, however, Tenant shall not be
obligated to pay any cost or expense to the extent such dispute is
resolved favorably to Tenant.
SECTION XV.8 Waiver of Bankruptcy Provisions. Tenant hereby
waives on behalf of its partners, shareholders or any Person having a
direct or indirect interest in Tenant including, without limitation, any
guarantor of Tenant's obligations hereunder, any and all rights which
may be available to such Person under Section 502(b)(6) of the United
States Bankruptcy Code or any other provision of any similar state or
federal bankruptcy law providing for the limitation or reduction of
damages which would otherwise be recoverable from such Person or
rights or remedies available against such Person under this Lease, at
law or in equity, in the event any case, proceeding or other action of
the type referred to in Section 15.1.5 or Section 15.1.7 hereof shall be
commenced by or against Tenant.
ARTICLE XVI
MISCELLANEOUS
SECTION XVI.1 Quiet Enjoyment. So long as Tenant timely pays all
the Rents and performs all of Tenant's other obligations hereunder
within the time periods required under this Lease, Tenant shall
peaceably and quietly hold and enjoy the Premises during the Term
without hindrance or ejection by Landlord or any person lawfully
claiming through or under Landlord, subject, nevertheless, to the
provisions of this Lease. This covenant is a covenant running with the
land and is subject to Section 12.2.
SECTION XVI.2 Broker. Each of Landlord and Tenant represents to
the other that it has dealt with no broker in connection with this Lease
other than Landlord's Broker and Tenant's Broker. Commissions, if
any, due to Landlord's Broker and/or Tenant's Broker shall be paid by
Landlord pursuant to a separate agreement. Each of Landlord and
Tenant agrees to indemnify, defend and hold harmless the other from
and against any claims, based or alleged to be based upon the acts or
omissions of the indemnifying party, for any brokerage commission or
finder's fee with respect to this Lease by persons other than Landlord's
Broker or Tenant's Broker, and for all costs, expenses and liabilities
incurred in connection with such claims, including attorneys' fees and
disbursements arising out of a breach of the foregoing representation.
SECTION XVI.3 Recording. Simultaneous with the execution and
delivery of this Lease, Landlord and Tenant have executed and
delivered to each other, a Memorandum of Lease (the
"Memorandum") substantially in the form of Exhibit R annexed hereto.
At any time after this Lease is released from escrow under the Lease
Escrow Agreement, Tenant may, at its sole cost and expense
(including, without limitation, all recording fees and taxes), record the
Memorandum, provided that (a) prior to such recordation (i) Tenant
has delivered a fully-executed Termination of Memorandum of Lease
(the "Termination") substantially in the form of Exhibit S annexed
hereto and otherwise satisfactory to Landlord, which Termination shall
be held in escrow by Sidley & Austin, or such other firm of attorneys
generally representing Landlord ("Escrow Agent"), under an escrow
agreement (the "Escrow Agreement") substantially in the form of
Exhibit T annexed hereto and otherwise satisfactory to Landlord and
(ii) any consents required to be obtained from the Board of Managers
in accordance with the Condominium Documents relating to this
Lease, the Memorandum or otherwise shall have been previously
obtained and, (b) after such recordation, Tenant shall deliver to
Landlord a copy of the Memorandum with the recording information
contained therein, and (c) Escrow Agent shall be authorized pursuant
to the Escrow Agreement, without further authorization from Tenant,
to record the Termination, at Tenant's sole cost and expense (including,
without limitation, all recording fees and taxes) on any date after the
Expiration Date. Landlord and Tenant shall, at either party's request,
execute all instruments, including, without limitation, tax forms and
affidavits, which are required by law to be signed by Landlord and/or
Tenant in order to record the Memorandum and/or the Termination.
Tenant shall not record this Lease or any memorandum thereof (other
than the Memorandum in accordance with this Section 16.3). In the
event that Landlord transfers its interest in the Unit (including the
Premises) to another Person in accordance with Section 12.12 prior to
the recordation of the Memorandum, such transfer shall be contingent
on the transferee assuming the obligations of Landlord under this
Section 16.3, and delivering to Tenant a Memorandum of Lease in
recordable form.
SECTION XVI.4 Entire Agreement. This Lease (including the
Exhibits attached hereto, whether executed or not) contains all of the
agreements and understandings between the parties related to the
leasing of the Premises and the respective obligations of Landlord and
Tenant in connection therewith. All prior agreements and
understandings between the parties have merged into this Lease and
such other documents referred to in this Section 16.4.
SECTION XVI.5 Amendments. No agreement shall be effective to
amend, change, modify, waive, release, discharge, terminate or effect
an abandonment of this Lease, in whole or in part, unless such
agreement is in writing, refers expressly to this Lease, and is signed by
Landlord and Tenant.
SECTION XVI.6 Successors. Except as otherwise expressly
provided herein, the obligations of this Lease shall bind and benefit the
successors and assigns of the parties hereto; provided, however, that
no assignment, sublease or other transfer in violation of the provisions
of Article XIV shall operate to vest any rights in any putative assignee,
sublessee or transferee of Tenant.
SECTION XVI.7 Force Majeure. Landlord shall have no liability
whatsoever to Tenant on account of the inability of Landlord to timely
fulfill any of Landlord's obligations under this Lease by reason of any
strike, lockout or other labor trouble; inability to obtain labor,
materials, coal, oil, or other suitable fuel or reasonable substitutes
therefor or the failure of the supply of any thereof; acts of God, fire or
other casualty; governmental preemption of priorities or other controls
in connection with a public emergency; governmental restrictions or
requirements of Laws; enemy or hostile governmental action; civil
commotion; or any other cause, whether similar or dissimilar to the
above, beyond Landlord's reasonable control (the foregoing events are
collectively referred to as "Force Majeure"). If this Lease specifies a
time period for performance of an obligation of Landlord, that time
period shall be extended by the period of any delay in Landlord's
performance caused by any of the events of Force Majeure. To the
extent the term "Force Majeure" is used in connection with any
obligation of Tenant under this Lease, the definition of "Force
Majeure" shall apply, mutatis mutandis, to Tenant.
SECTION XVI.8 Post-Termination Obligations. Upon the expiration
or earlier termination of this Lease, neither party shall have any
obligation or liability to the other in respect of any period after such
expiration or termination (except as otherwise expressly provided in
this Section 16.8 or elsewhere in this Lease), but all obligations and
liabilities under this Lease in respect of any period prior to such
expiration or termination shall survive such termination or expiration.
Notwithstanding the foregoing, (a) in case of any termination or
expiration under Article XV, Tenant shall remain liable as provided
therein, and (b) Tenant's accrued liability or obligations, as the case
may be, under this Lease shall in all events survive the expiration or
earlier termination of the Term.
SECTION XVI.9 Construction on Adjacent Premises. If any
excavation or other construction shall be made on any premises
adjoining or above or below the Unit or the Building, Tenant shall
permit Landlord, the Board of Managers or the adjoining owner, and
their respective agents, employees, licensees and contractors to enter
upon the Premises and to shore the walls thereof and to erect
scaffolding and/or protective barricades around the Building (but not
so as to preclude entry thereto) and to do any act or thing necessary for
the safety or preservation of the Unit or the Building. Tenant's
obligations under this Lease shall not be affected by any such
construction or excavation work, shoring-up, scaffolding or
barricading. Neither Landlord nor the Board of Managers shall be
liable for any inconvenience, disturbance, loss of business or any other
annoyance arising from such construction, excavation, shoring-up,
scaffolding or barricades, but Landlord shall use reasonable efforts,
consistent with commonly accepted construction practices in the
vicinity, to cause (or to use reasonable efforts to cause the Board of
Managers to cause) as little inconvenience to Tenant as possible and to
expeditiously complete (or to use reasonable efforts to cause the Board
of Managers to expeditiously complete) the work.
SECTION XVI.10 Interpretation.
XVI.10.1 Governing Law; Consent to Jurisdiction. (a) This Lease
shall be governed by, and be construed in accordance with, the laws of
the State of New York without regard to the principles of conflicts of
laws. To the fullest extent permitted by law, Tenant hereby
unconditionally and irrevocably waives any claims to assert that the law
of any other jurisdiction governs this Lease and agrees that this Lease
shall be governed by and construed in accordance with the laws of the
State of New York pursuant to 5-1401 of the New York General
Obligations Law.
(b) Any legal suit, action or proceeding against Tenant or Landlord
arising out of or relating to this Lease may be instituted in any federal
or state court in New York, New York, pursuant to 5-1402 of the
New York General Obligations Law, and Tenant hereby waives any
objection which it may now or hereafter have to the laying of venue of
any such suit, action or proceeding including, without limitation, any
claim of forum non convenience pursuant to any rule of common law
and/or any applicable federal or state statute, law or provision, and
Tenant hereby irrevocably submits to the jurisdiction of any such court
in any suit, action or proceeding.
XVI.10.2 Invalidity. If any provision of this Lease or the application
thereof to any Person or circumstance shall be invalid or unenforceable,
the remainder of this Lease and the application of that provision to
other Persons or circumstances shall not be affected but rather shall be
enforced to the fullest extent permitted by law.
XVI.10.3 Independent Covenants. Except where specifically provided
to the contrary, each provision of this Lease on Tenant's part to be
performed shall be deemed and construed as a separate and
independent covenant of Tenant, not dependent on any other provision
or covenant.
XVI.10.4 Number and Gender. All words used or defined in this
Lease or the Exhibits hereto, regardless of the number or gender in
which they are used, shall be deemed to include any other number and
any other gender as the context may require.
XVI.10.5 Exhibits. All exhibits, schedules and riders appended to this
Lease are incorporated herein and by this reference made a part hereof.
References to "Exhibits" or "Schedules" shall be to Exhibits and
Schedules attached to this Lease except where the context requires
otherwise.
XVI.10.6 Other Interpretational Provisions. References to "Articles"
and "Sections" shall be to Articles and Sections, respectively, of this
Lease unless otherwise specifically provided. The Table of Contents,
captions, headings and titles of this Lease are solely for convenience of
reference and shall not affect its interpretation. The terms "hereto",
"herein", "hereof", and "hereunder" and words of similar import refer
to this Lease generally, rather than to the Article or Section in which
such terms are used, unless otherwise specifically provided. This Lease
shall be construed without regard to any presumption or other rule
requiring construction against the party drafting a document. It shall be
construed neither for nor against Landlord or Tenant, but shall be given
a reasonable interpretation in accordance with the plain meaning of its
terms and the intent of the parties. References to agreements and other
contractual instruments shall be deemed to include all subsequent
amendments, restatements, supplements and other modifications
thereto, but only to the extent such amendments, restatements,
supplements and other modifications are not prohibited by the terms of
this Lease. References to the Building, the Common Elements, the
Unit, the Premises, any Lease Year, and similar references (including
references to any item included within any of the foregoing terms) shall
be construed as if such references were followed by the words "or any
part thereof or interest therein", except where the context requires
otherwise. The term "including" shall mean "including, but not limited
to," except where the context requires otherwise.
SECTION XVI.11 Joint and Several Liability. If at any time during
the Term, Tenant comprises more than one Person, all such Persons
shall be jointly and severally liable for payment of Rents and for
performance of every obligation of Tenant under this Lease.
SECTION XVI.12 Submission of Lease. The submission of this
Lease to Tenant or its broker, agent or attorney for review or signature
does not constitute an offer to Tenant to lease the Premises or the
granting of an option to do so. This instrument shall have no binding
force or effect until its execution and unconditional delivery by both
Landlord and Tenant.
SECTION XVI.13 Notices, Consents and Approvals. In order to be
effective, any notice, demand, consent or approval (a "Notice")
hereunder shall be in writing (except as otherwise expressly stated
herein) and signed by the party giving such Notice. Any Notice in
writing shall be personally delivered, sent by a nationally recognized
courier service or mailed by registered or certified mail, return receipt
requested, addressed as follows:
If to Landlord (such address, the "Address of Landlord"):
NY Broad Holdings, Inc.
c/o Canadian Imperial Bank
of Commerce
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxx X. Xxxxxx
With a copy to:
Sidley & Austin
000 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxx X. Xxxx, Esq.
If to Tenant (such address, the "Address of Tenant"):
Xxxxxxxxxx & Co. Inc.
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Xxxxxx X. Xxxxxxxxx
With a copy to:
Xxxxxxx Breed Xxxxxx &
Xxxxxx
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Richard Crystal, Esq.
If to the Board of Managers:
Board of Managers of The Condominium
c/o The Xxxxxxxxx
Company, L.P.
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxxx Xxxxx
provided, however, that (i) any delivery to be made to Landlord shall
be made to the address of Landlord specified above and (ii) the
Address of Tenant shall be to Tenant at the address of the Building
after Tenant occupies the Premises for the conduct of its business.
Notices in writing shall be deemed given when personally delivered or
upon receipt (or refusal of receipt) if mailed or sent by a courier
service. Any party hereto shall have the right to change its notice
address by giving notice to all of the other parties listed in this Section
16.13.
SECTION XVI.14 Lease Escrow Agreement. This Lease shall be
held in escrow pursuant to the terms and provisions of the Lease
Escrow Agreement (the "Lease Escrow Agreement"), dated as of the
date hereof, between Landlord, Tenant, and Sidley & Austin, as
Escrow Agent, the form of which is attached hereto as Exhibit V.
SECTION XVI.15 Certain Provisions Relating to the Condominium
Ownership. (a) As long as the Building shall be owned in a
condominium form of ownership, Landlord shall furnish to Tenant
copies of any material statements, documents and information relating
to the Premises which are provided to Landlord by the Board of
Managers or that it otherwise receives pursuant to the Condominium
Documents with respect to the Premises. Landlord agrees it will, upon
the reasonable request of Tenant, exercise on Tenant's behalf, (and at
Tenant's sole cost and expense if the obligation is not a duty of
Landlord under this Lease), any rights, powers, privileges and remedies
reserved to Landlord under the Condominium Documents (i) to review
and inspect records and otherwise obtain information from the
Condominium Board, (ii) to challenge any Common Charges, Unit
Expenses, or Taxes (to the extent allocable to the Landlord), and (iii)
to cause the Board of Managers to consent to any subleasing or
assignment otherwise in accordance with Article 14 above (but only if
Landlord has otherwise consented to such assignment and/or sublease),
but in each case only to the extent of Landlord's rights under such
Condominium Documents.
(b) Landlord shall (i) timely pay all common charges and other
sums required to be paid by Landlord, as Unit Owner under and
pursuant to the provisions of the Condominium Documents, (ii)
diligently perform and observe all of the terms, covenants and
conditions of the Condominium Documents on the part of Landlord, as
Unit Owner thereunder, to be performed and observed, unless (x) such
performance or observance shall be waived or not required by the
Board of Managers or (y) Tenant has agreed to perform or observe
such terms, covenants or conditions under this Lease, and (iii) promptly
notify Tenant of the giving of any notice by the Board of Managers
under the Condominium Documents to Landlord of any default by
Landlord in the performance or observance of any of the terms,
covenants or conditions of the Condominium Documents on the part of
Landlord, as Unit Owner thereunder, to be performed or observed and
deliver to Tenant a true copy of each such notice.
(c) If the Building shall no longer be owned in a condominium
form of ownership, this Lease shall remain in full force and effect,
Tenant shall continue to pay Rents, and Landlord and Tenant shall
perform their respective obligations hereunder. If either party
reasonably believes that it is necessary to clarify the terms of this Lease
as a result of such conversion in the form of ownership, then Landlord
and Tenant shall promptly execute an agreement clarifying their
respective obligations under this Lease; provided, however, neither
party shall be required to execute any such instrument which would
diminish or detract from the rights of such party or expand or enhance
the obligations of such party, in either case under this Lease, including
the first sentence of this Section 16.15. Subject to the foregoing, such
agreement shall reflect the change in the form of ownership and amend
the Lease accordingly, redacting terminology relating to condominium
ownership.
(d) Landlord agrees not to consent to any Major Decision (as
defined in the Declaration) if the effect of such Major Decision is
reasonably likely to impair or interfere with Tenant's rights or increase
Tenant's obligations under the Lease.
SECTION XVI.16 Directory Listings. (a) Landlord agrees to install,
at no cost to Tenant, two (2) separate Building Directories meeting the
specifications set forth in this Section 16.16 in the lobby of the Building
and to ensure that both Building Directories are fully functional and in
working order on or prior to the date Tenant commences business in
the Premises on a full-time basis. Landlord, at Tenant's request, shall
maintain on such Building Directory located in the lobby of the
Building, listings of the name of Tenant, Tenant's officers and
employees, permitted subtenants, permitted assignees and Affiliates of
Tenant and Occupants pursuant to Section 14.9 (and their respective
officers and employees); provided that the total number of names
allocated to Tenant and listed on such Building Directory shall not be
less than 138 names, which number shall not exceed the same
proportion of the Building Directory as Tenant's pro rata share of the
Building.
(b) One Building Directory shall be located in a free standing
console unit on the left side of the Broad Street lobby between the
present location of the guard desk and the Broad Street entrance, and
the other Building Directory shall be located in a free standing console
unit to the right side of the Vietnam Veterans Memorial Park entrance;
it being understood and agreed that the exact location of the Building
Directories shall be subject to the reasonable approval of the Board but
in any case shall be in accordance with the general spefications set forth
in this Section. Landlord covenants that Tenant's visitors and guests
shall have reasonable access to the Building Directories (it being
understood that such visitors and guests will not be required to ask for
the assistance of the Building's guards or doormen to use such
directories). The controls to the Building Directories will be
reasonably accessible to persons using such directories. In addition, the
Building Directories will be clearly identified as directories and will
contain instructions as to their proper use. Tenant acknowledges that,
as of the date hereof, the Building Directories have not been designed
and that minor changes to the placement and design of such Building
Directories may be necessary or advisable. Notwithstanding the
foregoing however, the Building Directories (including the computer
screens and the console unit) will be generally consistent with other
computerized building directories in Comparable Buildings; it being
understood and agreed that the design of the Building Directories shall
be subject to the reasonable approval of the Board but in any case shall
be in accordance with the general spefications set forth in this Section.
(c) Landlord agrees that the Base Rent Commencement Date shall
be extended one (1) day for each day from the date Tenant occupies
the Premises for the conduct of its business on a regular and full-time
basis until the Building Directories have been installed and are fully
functional in accordance with this Section.
SECTION XVI.17 Signage. Tenant shall have the right to install
appropriate Signage identifying Tenant, any Affiliate of Tenant or any
subtenant permitted under Article XIV or any Occupant pursuant to
Section 14.9, in keeping with the first class nature of the Unit, in the
elevator lobbies on the floors on which the Premises are located, and
on the doors to the Premises.
SECTION XVI.18 Certain Provisions Relating to Tenant's Share and
the Unit Area. (a) In the event that Landlord's interest in the Unit or
the Units share of the Building changes as a result of any sale,
acquisition, transfer, assignment or disposition of any portion of the
Unit (other than the Premises) to another Person (other than an affiliate
of Landlord), in accordance with Section 18 of the Declaration,
Landlord and Tenant agree to recalculate "Tenant's Percentage Share",
"Tenant's Share" and the "Unit Area" in a fair and equitable manner to
reflect such sale, acquisition, transfer, assignment or disposition; it
being understood that such recalculation shall be on such terms and in
such manner as shall be mutually agreeable to Landlord and Tenant.
When the Tenant's Percentage Share, Tenant's Share and the Unit Area
have been recalculated (in accordance with the previous sentence),
Landlord and Tenant shall execute and deliver an agreement setting
forth such recalculation and confirming the Tenant's Percentage Share,
Tenant's Share and the Unit Area.
(b) Any dispute under this Section 16.18 shall be determined by
arbitration conducted in New York, New York in accordance with the
rules of the AAA for commercial arbitration by one arbitrator. The
arbitrator shall be an independent real estate appraiser or consultant
having at least 15 years substantially continuous experience in the
business of leasing office space in Comparable Buildings and shall be
reasonably satisfactory to both Landlord and Tenant. Landlord and
Tenant shall execute all documents and do all other things necessary to
submit the dispute to arbitration pursuant to this Section 16.18. The
provisions of Section 16.21.3 with respect to disputes under Section
4.4 (Tax Payment or Operating Payment dispute) shall apply, mutatis
mutandis, with respect to any disputes under this Section 16.18.
SECTION XVI.19 Financial Statements. Within 10 Business Days
after Landlord's written request, Tenant shall promptly furnish
Landlord, from time to time, with the most recent annual (audited) and
quarterly (unaudited) consolidated financial statements for Tenant
prepared in accordance with GAAP (except as noted therein), certified
by an independent auditor as to the annual statement to be true and
correct and reflecting Tenant's then current financial condition.
SECTION XVI.20 Building Security. Landlord shall be the sole
determinant of the type and amount of security services to be provided
in the Unit, if any; Landlord covenants and agrees to provide (or shall
use all reasonable efforts to cause the Board of Managers to provide),
and Tenant shall be entitled to receive, building security as is consistent
with other Comparable Buildings. Without limiting the generality of
the foregoing, Landlord represents that, as of the date hereof, the
Board of Managers maintains a lobby concierge desk which is manned
twenty-four (24) hours a day, three hundred and sixty-five (365) days a
year. Subject to the Declaration and the first and second sentences
hereof, Landlord (for itself and the Board of Managers) reserves the
right to change the operation or manner of operating any of the
security systems currently in place. In all events and notwithstanding
any provision of this Lease to the contrary, Landlord and the Landlord
Parties shall not be liable to Tenant and Tenant hereby waives any
claim against Landlord, for (a) any unauthorized or criminal entry of
third parties into the Premises, the Unit or the Building or (b) any
damage to persons or property in or about the Premises, the Unit or the
Building by or from any unauthorized or criminal acts of third parties,
provided same does not arise out of the inaction, failure, breakdown,
malfunction of the security services provided unless caused by a default
or negligence on the part of Landlord or any Landlord Party.
SECTION XVI.21 Arbitration. Any dispute under Section 4.4 (Tax
Payment or Operating Payment dispute) or Section 6.1.2.1 (Electrical
Inclusion Amount dispute) or Section 17.4 (Renewal FMRV dispute)
or Section 18.4 (First Expansion FMRV dispute) or Section 19.4
(Second Expansion FMRV dispute) or Section 20.2 (Interest Factor
dispute) shall be determined by arbitration conducted in New York,
New York in accordance with the rules of the AAA for commercial
arbitration by a panel of two or three arbitrators (as specified below).
Each arbitrator shall be (a) an independent certified public accountant
who is an employee or member of a national accounting firm of
institutional reputation for determinations under Section 4.4 and (b) an
independent real estate appraiser or consultant having at least 15 years
substantially continuous experience in the business of appraising or
determining the value of office space in Comparable Buildings in
Manhattan for a determination under Section 17.4, 18.4, 19.4 or 20.2,
in each case whose compensation shall not in any case be based in any
measure on the results of the arbitration or Tenant's objection. No
arbitrator shall be employed by or affiliated with a firm which audits
leases or other accounts on a contingency fee basis. Landlord and
Tenant shall execute all documents and do all other things necessary to
submit the dispute to arbitration pursuant to this Section 16.21.
XVI.21.1 Designation Procedure for Tax and Operating Payment
Disputes and Other Disputes. In connection with any dispute under
Section 4.4 or Section 6.1.2.1, Tenant shall designate an arbitrator
meeting the requirements set forth above in its written notice
requesting arbitration. Landlord shall, by written notice to Tenant,
designate a second arbitrator meeting such requirements within 30 days
after receipt of Tenant's notice. Within 30 days after Landlord's notice
to Tenant, the two arbitrators so designated shall select a third
arbitrator meeting such requirements, and if they do not do so, the third
arbitrator shall be selected by the AAA.
XVI.21.2 Designation Procedure for FMRV Disputes. If Landlord
and Tenant shall fail to agree upon the Renewal FMRV, the First
Expansion FMRV, the Second Expansion FMRV, the Interest Factor,
as the case may be, within 15 days of the date of Landlord's receipt of
Tenant's Renewal Response Notice or Tenant's First Expansion
Response Notice, or Tenant's Second Expansion Response Notice (or,
with respect to the Interest Factor, within thirty days after Tenant
provides Landlord with its termination notice), as the case may be,
then, within 10 days thereafter, Landlord and Tenant each shall give
notice to the other setting forth the name and address of an arbitrator
designated by the party giving such notice meeting the requirements set
forth above. If either party shall fail to give notice of such designation
within such 10 day period, then the arbitrator chosen shall make the
determination alone. If two arbitrators have been designated, such two
arbitrators may consult with each other and shall, not later than the
45th day after Landlord's receipt of Tenant's Renewal Response
Notice, Tenant's First Expansion Response Notice, or Tenant's Second
Expansion Response Notice, as the case may be, make their
determinations of the Renewal FMRV, the First Expansion FMRV, or
the Second Expansion FMRV, as the case may be, in writing and give
notice thereof to each other and to each of Landlord and Tenant;
provided that the arbitrators' only decision shall be to choose (i) with
respect to the Renewal FMRV, either the Renewal FMRV set forth
either in Landlord's Renewal Rent Notice or Tenant's Renewal
Response Notice (and no other), (ii) with respect to the First
Expansion FMRV, the First Expansion FMRV set forth either in
Landlord's First Expansion Rent Notice or in Tenant's First Expansion
Response Notice (and no other), (iii) with respect to the Second
Expansion FMRV, the Second Expansion FMRV set forth either in
Landlord's Second Expansion Rent Notice or Tenant's Second
Expansion Response Notice (and no other), or (iv) with respect to the
Interest Factor, the Interest Factor set forth in Tenant's termination
notice or in Landlord's response. Such two arbitrators shall have 15
days after the receipt of notice of each other's determination to confer
with each other and to attempt to reach agreement as to the
determination of the Renewal FMRV, the First Expansion FMRV, or
the Second Expansion FMRV, as the case may be. If such two
arbitrators shall concur as to the determination of the Renewal FMRV,
the First Expansion FMRV, or the Second Expansion FMRV, as the
case may be, such determination shall be final and binding upon
Landlord and Tenant, subject however to Section 17.4.2.3, Section
18.4.2.3 or Section 19.4.2.3, If such two arbitrators shall fail to concur
within such 15 day period, then such two arbitrators shall, within the
next 10 days, designate a third arbitrator meeting the above
requirements. If the two arbitrators shall fail to agree upon the
designation of such third arbitrator within such 10 day period, then
either party may apply to the AAA for the designation of such
arbitrator. The third arbitrator shall conduct such hearings and
investigations on an expedited basis as such arbitrator may deem
appropriate and shall, within 10 business days after its designation,
choose one of the determinations (and no other) of the two arbitrators
originally selected by the parties by simultaneously delivering to
Landlord and Tenant signed and acknowledged original counterparts of
his or her determination within 5 days thereof.
XVI.21.3 Miscellaneous. The costs and expenses of an arbitration and
each of the arbitrators for a determination under Section 4.4 but not
under any other provision unless specifically provided herein shall be
paid by Tenant, unless it is determined that Landlord's determination of
Taxes or Operating Expenses for the period in question was in error by
more than 5%, in which case Landlord shall bear such costs and
expenses but each party shall be responsible for all of its other costs
and expenses and the fees and expenses of its own witnesses and
counsel. The costs and expenses of the arbitration and of the third
arbitrator for a determination under Section 17.4 or Section 18.4 or
Section 19.4 shall be shared equally by Landlord and Tenant and each
party shall be responsible for the costs and expenses of its designated
arbitrator and its own witnesses and counsel; provided that in the event
Tenant elects to rescind its Renewal Notice, First Expansion Notice
and/or Second Expansion Notice in accordance with any other
provision including Section 16.18, Section 17.4.2.3 or Section 18.4.2.3
or Section 19.4.2.3, as the case may be, Tenant shall promptly
reimburse Landlord for all of the reasonable costs and expenses
incurred by Landlord in connection with such arbitration (including,
without limitation, the arbitrator, witnesses and counsel). The
arbitrators shall have the right to consult experts in the matter under
arbitration; provided, however, that any such consultation shall be
made only after 10 days' prior notice to Landlord and Tenant and only
in their presence, with full right on their part to cross-examine such
experts. The arbitrators' final decision and award shall be in writing,
shall be binding on Landlord and Tenant and shall be non-appealable,
and counterpart copies thereof shall be delivered to Landlord and
Tenant. A judgment or order based upon such award may be entered
in any court of competent jurisdiction. In rendering their decision and
award, the arbitrators shall have no power to vary, modify or amend
any provision of this Lease.
SECTION XVI.22 Waiver Regarding Development Rights. Tenant
irrevocably waives any and all right(s) it may have in connection with
any zoning lot merger or subdivision or transfer of development rights
with respect to the Unit, the Building or the land underlying the
Building including, but not limited to, any rights it may have to be a
party to or to execute or to contest any Declaration of Restrictions (as
such term is defined in Section 12-10 of the Zoning Resolution of the
City of New York effective December 15, 1961, as amended) with
respect to the Unit, the Building or the land underlying the Building
that would cause the Premises to be merged with or unmerged from
any other zoning lot pursuant to such Zoning Resolution or to any
document of a similar nature and purpose. This Lease shall be subject
and subordinate to any Declaration of Restrictions or any other
document of similar nature and purpose now or hereafter affecting the
Unit, the Building or the land underlying the Building provided same
does not increase Tenant's Base Rent or Additional Rent hereunder and
does not materially adversely affect any of Tenant's rights hereunder or
materially increase any of Tenant's obligations or decrease any of
Tenant's remedies under this Lease. In confirmation of such
subordination and waiver, Tenant shall execute and deliver promptly
any waiver document or other certificate or instrument that Landlord
may reasonably request.
SECTION XVI.23 Messenger Desk. Landlord covenants and agrees
to provide (or to cause the Board of Managers to provide) a "bonded"
individual (in an amount equal to at least $1,000,000) to be available in
the lobby of the Building or in the Building's messenger center in order
to receive deliveries for Tenant.
SECTION XVI.24 Certain Provisions Relating to the Ground Lease.
Tenant covenants and agrees that if by reason of a default under the
Ground Lease (including any underlying lease through which Landlord
derives its leasehold estate in the Premises), such Ground Lease and/or
underlying lease and the leasehold estate of the Landlord in the
Premises is terminated, Tenant will attorn to the then holder of the
reversionary interest in the Premises demised by this Lease and will
recognize such holder as Tenant's landlord under this Lease, unless the
lessor under such Ground Lease and underlying lease shall, in any
proceeding to terminate such Ground Lease or underlying lease, elect
to terminate this Lease and the rights of the Tenant hereunder. Tenant
agrees to execute and deliver, at any time and from time to time, upon
the request of the Landlord or of the lessor under the Ground Lease,
any instrument which may be necessary or appropriate to evidence
such attornment and Tenant hereby appoints Landlord (or such lessor
under such underlying lease) as the irrevocable attorney-in-fact of
Tenant to execute and deliver for and on behalf of Tenant any such
instrument. Tenant further waives the provision of any statute or rule
of law now or hereafter in effect which may give or purport to give
Tenant any right of election to terminate this Lease or to surrender
possession of the Premises in the event any proceeding is brought by
the lessor under such Ground Lease and/or underlying lease to
terminate the same, and agrees that unless and until any such lessor, in
connection with any such proceeding, shall elect to terminate this Lease
and the rights of the tenant hereunder, this Lease shall not be affected
in any way whatsoever by any such proceeding.
SECTION XVI.25 Landlord General Covenant. (a) Notwithstanding
any other provisions of this Lease, if any obligation or covenant by
Landlord to Tenant made pursuant to this Lease or otherwise is
contingent upon an obligation or covenant or right of the Board of
Managers or Unit Owners under the Condominium Documents,
Landlord shall use all "reasonable efforts" to have the Board of
Managers or Unit Owners promptly discharge or perform the same.
The term "reasonable efforts" shall include, without limitation, the
following:
(i) the prompt institution and diligent prosecution of legal
proceedings to cause the Board of Managers to discharge or perform
such obligation or covenant;
(ii) the settlement or arbitration of unresolved issues with respect
to the matters described in clause (i) above under a settlement
stipulation or an arbitration proceeding providing for the Board of
Managers or Unit Owners to discharge or perform such obligation or
covenant; and
(iii) such other reasonable efforts (which shall include the
expenditure of funds but only to the extent such expenditures are
reasonably necessary to carry out the foregoing) to enforce Landlord's
rights under the Condominium Documents, and to induce the Board of
Managers to cooperate and cause the Condominium to perform or
allow Landlord to perform Landlord's obligations under the Lease.
In addition, if Landlord has agreed under any covenant or obligation
under this Lease to use all "reasonable efforts" to cause the Board of
Managers to discharge or perform such obligation or covenant, the
term "reasonable efforts" shall be defined by reference to this Section
16.25.
In the event Landlord fails to undertake such reasonable efforts as are
required to be taken in accordance with this Lease and such efforts are
reasonably necessary to cause the Board of Managers or Unit Owners
to discharge or perform such duty or obligation, then, after prior
written notice to Landlord and 5 Business Days opportunity to cure,
Tenant may take any action described in this Section 16.25 (including,
without limitation, to prosecute any legal proceeding), with Landlord's
cooperation, at Landlord's sole cost and expense and in Landlord's
name.
(b) No later than five (5) Business Days after the release of this
Lease from the Lease Escrow Agreement, Landlord shall execute and
deliver to the Board of Managers the notice letter set forth in Exhibit X
attached hereto.
ARTICLE XVII
RENEWAL OPTION
SECTION XVII.1 Grant of Option. Tenant shall have one option (the
"Renewal Option") to extend the Term of this Lease for an additional
term of five (5) years (the "Renewal Term"), subject to and upon the
terms and conditions contained in this Article XVII. The Renewal
Term shall commence upon the day immediately following the first
scheduled Expiration Date and shall end at noon on the day preceding
the fifth (5th) anniversary of the commencement of the Renewal Term.
The Renewal Term shall be upon the same terms and conditions as are
provided for in this Lease, except that (a) there shall be no further
option to renew pursuant to this Section 17.1 or otherwise; (b) Tenant
shall not be entitled to any credit against Rent or any other rent
concession or rent allowance or abatement of Rent; (c) the provisions
of Exhibit D (excluding Schedule D-1) shall not apply; (d) the Base
Rent payable for the Renewal Term shall be the Base Rent set forth in
Section 17.3; (e) Landlord shall be under no obligation to perform any
work, make any installations, or provide any services by virtue of such
renewal, or in order to prepare the Premises for Tenant's occupancy; (f)
the Base Operating Expenses shall be the Operating Expenses for the
Lease Year in which such Renewal Term shall commence; and (g) the
Base Taxes shall be the Taxes for the period commencing on July 1,
2013 and ending on June 30, 2014.
SECTION XVII.2 Exercise. Subject to the provisions of Section
17.5, the Renewal Option may be exercised only by Tenant giving
written notice (the "Renewal Notice") to Landlord thereof on or before
a date that is sixteen (16) months prior to the first scheduled Expiration
Date.
SECTION XVII.3 Renewal Term Base Rent. The Base Rent per
annum for the Premises during the Renewal Term (the "Renewal Term
Base Rent") shall be an amount equal to the greater of (a) 95% of (i)
the Rentable Area of the Premises, multiplied by (ii) the Renewal
FMRV of the Premises as of the first day of the Renewal Term, as
determined in accordance with Section 17.4 and (b) the Base Rent
payable by Tenant on the Expiration Date, together with all Additional
Rent (on a per annum basis) payable by Tenant pursuant to Article 4 as
of the date of determination of the Renewal FMRV.
SECTION XVII.4 Renewal FMRV.
XVII.4.1 Definition. The "Renewal FMRV" of the Premises
shall be the rental value of the Premises in the Renewal Market (as
hereinafter defined) during a term that most closely matches the length
of the Renewal Term (the "Renewal Market Term") if such term
commenced on the commencement of the Renewal Term or, if such
amount is greater, the amount specified in Section 17.3(b). Such rental
value shall be expressed as an amount of money per square foot of
Rentable Area adjusted to remain constant over the entire Renewal
Market Term. "Renewal Market" shall mean the rental market during
the Renewal Market Term for tenants in comparable spaces in
Comparable Buildings seeking to renew their leases in such spaces
taking into account the following factors and additional assumptions:
(a) the lease will be for the Renewal Market Term;
(b) Tenant will pay with respect to the Premises its proportionate
share of Taxes over the Base Taxes for the first year of the Renewal
Term;
(c) Tenant will pay with respect to the Premises its proportionate
share of Operating Expenses over the Base Operating Expenses for the
first year of the Renewal Term;
(d) to the extent the Premises shall be compared with other space,
the rentable area of such other space shall be measured in accordance
with Exhibit M;
(e) Tenant will be leasing the Premises "AS IS";
(f) the Renewal FMRV shall be calculated based on Landlord's
actual expense for brokerage commission, if any to the Brokers, for the
Premises for the Renewal Term;
(g) the Renewal FMRV shall be calculated as if Tenant will be
leasing the Rentable Area of the Premises;
(h) the Renewal FMRV shall be calculated assuming that Landlord
has had a reasonable time to locate a tenant who rents with knowledge
of the uses to which the Premises can be adapted, that neither Landlord
nor the prospective tenant is under any compulsion to rent, and that
Landlord and the prospective tenant negotiate at arm's length and in
good faith; and
(i) that Landlord will not be obligated to perform any work in the
Premises for the Renewal Term (other than any such work as may be
specifically described in this Lease) in order to prepare the same for the
prospective tenant's occupancy, or to contribute or loan any money on
account thereof, whether in the form of a tenant fund, tenant loan, rent
credit or concession, leasing inducement or otherwise and these factors
shall be taken into consideration as a savings to Landlord and serve to
reduce the Renewal FMRV for the Renewal Term Base Rent.
XVII.4.2 Procedure for Determining Renewal FMRV. For
purposes of determining the Renewal FMRV, the following procedure
shall apply:
XVII.4.2.1 If Tenant has timely given the Renewal Notice, Landlord
shall within 15 days deliver to Tenant a written notice of Landlord's
determination of what the Renewal FMRV would be during the
Market Term ("Landlord's Renewal Rent Notice").
XVII.4.2.2 Within 15 days after Tenant's receipt of Landlord's
Renewal Rent Notice, Tenant shall give Landlord notice ("Tenant's
Renewal Response Notice") electing either (a) to accept the Renewal
FMRV set forth in Landlord's Renewal Rent Notice, in which case the
Renewal FMRV shall be the Renewal FMRV set forth in Landlord's
Renewal Rent Notice, or (b) not to accept Landlord's determination of
the Renewal FMRV, in which case (i) Tenant's Renewal Response
Notice shall set forth Tenant's estimate of what the Renewal FMRV
would be during the Market Term and (ii) Landlord and Tenant shall
endeavor to agree upon the Renewal FMRV on or before the date that
is 15 days after Landlord's receipt of Tenant's Renewal Response
Notice. If Landlord and Tenant are unable to agree upon the Renewal
FMRV within such 15-day period, then the Renewal FMRV shall be
determined by arbitration pursuant to Section 16.21. If Tenant fails to
deliver Tenant's Renewal Response Notice within the 15-day period
following its receipt of Landlord's Renewal Rent Notice, Tenant shall
be conclusively deemed to have accepted Landlord's determination of
the Renewal FMRV as set forth in Landlord's Renewal Rent Notice.
XVII.4.2.3 In the event that the Renewal FMRV is determined in
accordance with arbitration pursuant to Section 16.21 to be the
Renewal FMRV set forth in Landlord's Renewal Rent Notice, then
Tenant shall have the right to rescind Tenant's Renewal Notice given in
accordance with Section 17.2; provided that, no later than 10 days after
such determination, Tenant provides written notice ("Tenant's Renewal
Rescission Notice") to Landlord exercising the aforesaid recision right.
In the event Tenant timely delivers Tenant's Renewal Rescission Notice
to Landlord, time being of the essence, then Tenant shall be deemed
not to have timely delivered the Renewal Notice pursuant to the
provisions of this Article XVII, and the terms and provisions of Section
17.6 shall thereafter apply.
XVII.4.3 [Intentionally Deleted.]
XVII.4.4 Memorializing Instrument. After a determination of the
Renewal FMRV for the Renewal Term has been made, the parties shall
execute and deliver to each other an instrument setting forth the
amount of Base Rent for the Renewal Term, but the failure to do so
shall not affect Tenant's obligation to pay such Base Rent.
SECTION XVII.5 Conditions to Exercise of Renewal Option.
Notwithstanding the foregoing provisions of this Article XVII, Tenant
may not exercise the Renewal Option on any date on which Tenant is
in Material Default under this Lease beyond any applicable grace,
notice and cure period and any exercise of such Renewal Option shall
be deemed null and void and of no force and effect if on the
commencement of the Renewal Term Tenant is in default under this
Lease after the giving of any required notice and the expiration of any
required grace or cure period.
SECTION XVII.6 Failure to Exercise Renewal Option. If Tenant
does not timely send the Renewal Notice pursuant to the provisions of
this Article XVII within the applicable time period, time being of the
essence, then (a) Tenant shall have forever waived and relinquished its
right to renew the Term, any other options or rights to renew or extend
the Term effective after the expiration of this Renewal Option shall
terminate, (b) Landlord shall at any time thereafter be entitled to lease
the Premises to others at such rental and upon such terms and
conditions as Landlord in its sole discretion may desire, and (c) Tenant,
upon Landlord's request, shall promptly deliver to Landlord (and any
other Person designated by Landlord) a notice acknowledging that
Tenant has forever waived and relinquished its right to exercise the
Renewal Option.
SECTION XVII.7 Renewal Option is Part of Lease. The termination
of this Lease shall also terminate and render void the Renewal Option
contained in this Article XVII whether or not it shall have been
exercised. This Renewal Option may not be severed from this Lease or
separately sold, assigned or transferred.
ARTICLE XVIII
FIRST EXPANSION OPTION
SECTION XVIII.1 Grant of First Expansion Option. Subject to and
in accordance with the provisions of this Article XVIII, Tenant shall
have an option (the "First Expansion Option") to lease the First
Expansion Space (as defined below) for a term to commence as
provided in Section 18.2. Subject to the provisions of Section 18.8,
Tenant may elect to lease the First Expansion Space pursuant to the
following procedure:
XVIII.1.1 Not later than sixteen (16) months prior to the First
Expansion Space Scheduled Commencement Date, Landlord shall give
Tenant a notice (the "First Expansion Space Availability Notice")
setting forth (a) the date (the "First Expansion Space Scheduled
Commencement Date") upon which Landlord determines the First
Expansion Space will be available for lease by Tenant, which shall be a
date selected by Landlord in its sole discretion between October 1,
2003 and September 30, 2004 and (b) a description in reasonable detail
of the space in the Building which shall be available for lease by Tenant
pursuant to this First Expansion Option on the First Expansion Space
Scheduled Commencement Date which shall consist of approximately
17,000 rentable square feet on the eastern portion of the fourteenth
(14th) floor of the Building; provided that Landlord shall use all
reasonable efforts so that such space shall be contiguous and
reasonably demised for Tenant's use thereof (the "First Expansion
Space") and (c) Landlord's estimate of what the First Expansion
FMRV would be for the First Expansion Space. If Landlord shall fail
or be unable to give the First Expansion Space Availability Notice on
or before March 30, 2003, Tenant shall deliver written notice to
Landlord stating such failure and demanding that Landlord deliver such
notice, and Landlord shall promptly respond in writing to Tenant's
demand, setting forth in reasonably sufficient detail the reasons for
Landlord's failure or inability to deliver the First Expansion Space
Availability Notice. If Landlord has not, in good faith, delivered such
First Expansion Space Availability Notice by May 30, 2003, Tenant
may deliver such First Expansion Space Availability Notice and seek all
legal remedies, including an action for declaratory or injunctive relief or
for any loss, injury or damage claimed by Tenant in connection with the
failure or refusal by Landlord to deliver such notice (except that
Landlord shall incur no liability whatsoever if the inability to deliver
such notice is due to Force Majeure, but Force Majeure shall not
include any rights or circumstances arising out of Landlord's acts or
failings to act or of any rights granted to any tenant or occupant),
which failure shall be considered to be an anticipatory breach by
Landlord of this Article XVIII.
XVIII.1.2 Not later than fifteen Business Days after Tenant's receipt of
the First Expansion Space Availability Notice, Tenant shall give
Landlord a notice ("First Expansion Notice") exercising the First
Expansion Option.
SECTION XVIII.2 Inclusion of First Expansion Space. Subject to the
provisions of Section 18.8, if Tenant timely commits to exercise the
First Expansion Option, then the First Expansion Space shall be added
to and included in the Premises for the period (the "First Expansion
Space Term") (a) commencing on the date (the "First Expansion Space
Inclusion Date") which is the later to occur of (i) the date on which
Tenant shall take exclusive possession of the First Expansion Space for
purposes of construction or the conduct of business, (ii) the date on
which Landlord shall have delivered exclusive possession of the First
Expansion Space to Tenant, and (iii) the First Expansion Space
Scheduled Commencement Date, and (b) ending on the Expiration
Date.
XVIII.2.1 Terms of Inclusion. The inclusion of the First Expansion
Space shall be upon all the terms and conditions of this Lease, except
as otherwise stated in this Article XVIII.
XVIII.2.2 Tenant's Share. As of the First Expansion Space Inclusion
Date, Tenant's Share shall be increased by a percentage equal to (a) the
First Expansion Space Rentable Area divided by (b) the Unit Area.
XVIII.2.3 Rentable Area. The Rentable Area of the First Expansion
Space (the "First Expansion Space Rentable Area") shall be the
rentable square feet measured in accordance with Exhibit M and set
forth in Landlord's First Expansion Space Availability Notice, or such
other number reasonably agreed upon by Landlord and Tenant,
notwithstanding any subsequent remeasurements.
XVIII.2.4 Condition of First Expansion Space. Tenant shall accept
the First Expansion Space in its "AS IS" condition and state of repair
existing as of the First Expansion Space Inclusion Date, except that
Landlord will provide and install demising walls in the First Expansion
Space and be responsible for the elevator lobby and other common
areas on that floor. Furthermore, Landlord shall not be required to
perform any work, supply any materials or incur any expense (including
the granting of any allowance to Tenant with respect thereto) to
prepare the First Expansion Space for Tenant's occupancy.
XVIII.2.5 Rent Abatement. Tenant shall not be entitled to a credit
against Rent or any other rent concession or abatement of Rent, or
allowance, with respect to the First Expansion Space.
SECTION XVIII.3 First Expansion Space Base Rent. The Base Rent
per annum for the First Expansion Space during the First Expansion
Space Term ("First Expansion Space Base Rent") shall be an amount
equal to the greater of (a) 95% of the product of (i) the First Expansion
Space Rentable Area, multiplied by (ii) the First Expansion FMRV as
of the First Expansion Space Scheduled Commencement Date, as
determined in accordance with Section 18.4 and (b) (i) the First
Expansion Space Rentable Area, multiplied by (ii) the Adjusted
Escalated Rent, as of the First Expansion Space Scheduled
Commencement Date, as determined in accordance with Section
18.3.1.
18.3.1 Adjusted Escalated Rent. (a)(i) In the event that Landlord has
entered into a valid, binding and effective lease with another occupant
or otherwise receives payment for the use and occupancy of the First
Expansion Space with respect to the First Expansion Space prior to the
date of determination of the First Expansion FMRV, the term
"Adjusted Escalated Rent" shall mean an amount equal to (x) the
Escalated Rent minus (y) $9.12 per square foot plus (z) the Future
Value Amount (as hereinafter defined) amortized over the then
remaining term of this Lease; provided that in no event shall the
Adjusted Escalated Rent exceed the Escalated Rent. Nothing herein
shall limit Landlord's obligations under Section 18.7.
(ii) In the event that Landlord has not entered into a valid, binding
and effective lease or otherwise receives payment for the use and
occupancy of the First Expansion Space with respect to the First
Expansion Space prior to the date of determination of the First
Expansion FMRV, the term "Adjusted Escalated Rent" shall mean an
amount equal to the Escalated Rent
(b) As used herein, the following terms shall have the following
meanings:
(i) "Applicable Period" shall mean the period commencing on the
Commencement Date and ending on the First Expansion Space
Commencement Date.
(ii) "Escalated Rent" shall mean the base rent payable by Tenant on
the First Expansion Space Scheduled Commencement Date, together
with all additional rent (on a per annum basis) payable by Tenant
pursuant to Article 4 as of the date of determination of the First
Expansion FMRV, which amount shall be expressed as an amount of
money per square foot in respect of the Premises.
(iii) "Future Value Amount" shall mean an amount equal to the
future value, determined as of the First Expansion Space
Commencement Date of (x) $14.22 per square foot minus (y) the
annualized "net effective rent" (as hereinafter defined) for such lease,
determined with respect to the Applicable Period and using an imputed
interest rate equal to eight percent (8%) per annum discounted monthly
for the Applicable Period.
(iv) "net effective rent" shall mean, with respect to any lease
entered into for all or any portion of the First Expansion Space, the rent
provided for in such lease and other consideration to Landlord adjusted
to give effect to any rent offsets or abatements, improvement funds,
concessions, bonuses, free or reduced rental, rebates, cash
contributions, tenant work allowances or the like; it being the intent of
the parties hereto, that the "net effective rent" shall reflect the rent for
such space under the lease and other consideration received by
Landlord with respect to such lease after taking into account the
foregoing factors, which amount shall be expressed as an amount of
money per square foot per annum in respect of the premises demised
under such lease and amortized over the Applicable Period.
(c) As an example of the method of calculating the Adjusted Escalated
Rent, the parties agree that the following example sets forth the
mechanics for determining the Adjusted Escalated Rent and the "net
effective rent". The assumptions of this example are as follows:
(i) Landlord enters into a 78 month lease for 16,000 square feet of
space on the fourteenth floor commencing on the Commencement
Date and expiring on the 78 month anniversary of the Commencement
Date.
(ii) The First Expansion Space Scheduled Commencement Date is
the 78 month anniversary of the Commencement Date.
(iii) The stated base rent of such lease is $20.00 per square foot,
and Landlord provides the tenant of such space with concessions and
tenant work allowances in an amount equal to $25.00 per square foot.
In addition, the real estate brokerage commission is equal to $5.85 per
square foot and the tenant is entitled to 12 months free rent.
(iv) As of the determination of the First Expansion FMRV, Base
Rent is $24.00 per square foot.
(d) Based on the assumptions described above, the "net effective
rent" in this example is $10.15 per square foot . This amount reflects
the stated rent (i.e., $20.00 per square foot) after deducting therefrom
the present value of the concessions, free rent, and tenant work
allowances (i.e., $25.00 per square foot) and brokerage commissions
($5.85 per square foot), as such amount is amortized over the
Applicable Period.
(e) Based on the assumptions described above, the "Adjusted
Escalated Rent" in this example is $19.90 per square foot plus the
accrued escalations under this Lease.
SECTION XVIII.4 First Expansion FMRV.
XVIII.4.1 Definition. The "First Expansion FMRV" shall be the
rental value of the First Expansion Space in the First Expansion Market
(as hereinafter defined) during a term that most closely matches the
length of the First Expansion Space Term (the "First Expansion Market
Term") if such term commenced on the First Expansion Space
Scheduled Commencement Date or, if such amount is greater, the
amount specified in Section 18.3(b). Such rental value shall be
expressed as an amount of money per square foot of Rentable Area
adjusted to remain constant over the entire First Expansion Market
Term. "First Expansion Market" shall mean the rental market during
the First Expansion Market Term for tenants in Comparable Buildings
seeking comparable unencumbered expansion space in their respective
Comparable Buildings taking into account the following factors and
additional assumptions:
(a) the lease will be for the First Expansion Market Term;
(b) Tenant will pay with respect to the First Expansion Space its
proportionate share of Taxes over the Base Taxes set forth in Section
18.5;
(c) Tenant will pay with respect to the First Expansion Space its
proportionate share of Operating Expenses over the Base Operating
Expenses set forth in Section 18.5;
(d) to the extent the First Expansion Space shall be compared with
other space, the rentable area of such other space shall be measured in
a similar manner as the Premises are measured herein;
(e) Tenant will be leasing the First Expansion Space "As Is" in
accordance with Section 18.2.4. All costs and expenses Tenant may
incur in order to bring the First Expansion Space into compliance with
Laws, including, but not limited to, compliance with ADA
Requirements and abatement or removal of any ACM or to perform
demolition in the space shall be taken into consideration as a savings to
Landlord and serve to reduce the First Expansion FMRV in the First
Expansion Space.
(f) the First Expansion FMRV shall be calculated based on
Landlord's actual expense for brokerage commission, if any, to the
Brokers for the First Expansion Space for the First Expansion Market
Term;
(g) the First Expansion FMRV shall be calculated as if Tenant will
be leasing an aggregate of (i) the Rentable Area of the First Expansion
Space plus (ii) the Rentable Area of the balance of the Premises;
(h) the First Expansion FMRV shall be calculated assuming that
Landlord has had a reasonable time to locate a tenant who rents with
knowledge of the uses to which the First Expansion Space can be
adapted, that neither Landlord nor the prospective tenant is under any
compulsion to rent, and that Landlord and the prospective tenant
negotiate at arm's length and in good faith; and
(i) that Landlord will not be obligated to perform any work in the
First Expansion Space for the First Expansion Space Term in order to
prepare the same for the prospective tenant's occupancy, or to
contribute or loan any money on account thereof, whether in the form
of a tenant fund, tenant loan, rent credit or concession, leasing
inducement or otherwise and these factors shall be taken into
consideration as a savings to Landlord and serve to reduce the First
Expansion FMRV in the First Expansion Space.
XVIII.4.2 Procedure for Determining First Expansion FMRV.
For purposes of determining the First Expansion FMRV, the following
procedure shall apply:
XVIII.4.2.1 [Intentionally Deleted.]
XVIII.4.2.2 Within 15 Business Days after Tenant's receipt of
Landlord's First Expansion Space Availability Notice, Tenant shall give
Landlord written notice ("Tenant's First Expansion Response Notice")
electing either (a) to accept the First Expansion FMRV set forth in
Landlord's First Expansion Space Availability Notice, in which case the
First Expansion FMRV shall be the First Expansion FMRV set forth in
Landlord's First Expansion Space Availability Notice, or (b) not to
accept Landlord's determination of the First Expansion FMRV, in
which case (i) Tenant's First Expansion Response shall set forth
Tenant's estimate of what the First Expansion FMRV would be for the
First Expansion Space and (ii) Landlord and Tenant shall endeavor to
agree upon the First Expansion FMRV on or before the date that is 15
days after Landlord's receipt of Tenant's First Expansion Response
Notice. If Landlord and Tenant are unable to agree upon the First
Expansion FMRV within such 15-day period, then the First Expansion
FMRV shall be determined by arbitration pursuant to Section 16.21. If
Tenant fails to deliver Tenant's First Expansion Response Notice within
the 15-day period following its receipt of Landlord's First Expansion
Space Availability Notice, Tenant shall be conclusively deemed to have
accepted Landlord's determination of the First Expansion FMRV as set
forth in Landlord's First Expansion Space Availability Notice.
XVIII.4.2.3 In the event that the First Expansion FMRV is determined
in accordance with arbitration pursuant to Section 16.21 to be the First
Expansion FMRV set forth in Landlord's First Expansion Space
Availability Notice, then Tenant shall have the right to rescind Tenant's
First Expansion Notice given in accordance with Section 18.1.2;
provided that, no later than 10 days after such determination, Tenant
provides written notice ("Tenant's First Expansion Rescission Notice")
to Landlord exercising the aforesaid recision right. In the event Tenant
timely delivers Tenant's First Expansion Rescission Notice to Landlord,
time being of the essence, then Tenant shall be deemed not to have
timely delivered the First Expansion Notice pursuant to the provisions
of this Article XVIII, and the terms and provisions of Section 18.9 shall
thereafter apply.
XVIII.4.3 [Intentionally Deleted.]
XVIII.4.4 Memorializing Instrument. After a determination of the
First Expansion FMRV has been made, the parties shall execute and
deliver to each other an instrument setting forth the amount of Base
Rent for such First Expansion Space Term, but the failure to do so
shall not affect Tenant's obligation to pay such Base Rent.
SECTION XVIII.5 Tax and Operating Expense Payments. Tenant
shall pay to Landlord Additional Rent with respect to the First
Expansion Space from and after the First Expansion Space Inclusion
Date in accordance with all of the terms and conditions of Article IV,
except that:
(a) Tenant's Share shall be increased as set forth in Section 18.2.2
to reflect such First Expansion Space;
(b) the Base Taxes with respect to such First Expansion Space
shall be the Taxes for the Tax Year in which the First Expansion Space
Inclusion Date occurs; and
(c) the Base Operating Expenses with respect to such First
Expansion Space shall be the Operating Expenses for the Lease Year in
which the First Expansion Space Inclusion Date occurs.
SECTION XVIII.6 Improvements. Any work performed by Tenant
in any First Expansion Space shall be subject to the terms, conditions
and provisions of Section 8.1 of this Lease. All Alterations permitted
to be made to any First Expansion Space shall be at Tenant's sole cost
and expense.
SECTION XVIII.7 Landlord's Inability to Deliver First Expansion
Space.
XVIII.7.1 Generally. Once Tenant has delivered the First
Expansion Notice, Landlord shall take all actions necessary or desirable
to deliver possession of the First Expansion Space to Tenant on or
prior to the First Expansion Space Scheduled Commencement Date,
which efforts shall include the actions set forth in clause (iii) below. In
connection therewith and without limiting the generality of the
foregoing, Landlord agrees that any lease or other right relating to the
fourteenth (14) floor of the Building (x) shall be expressly subject to
Tenant's rights under this Lease, including Articles XVIII and XIX, (y)
shall expire no later than forty-five (45) days prior to the First
Expansion Space Scheduled Commencement Date, and (z) shall
include such lease terms and provisions as are necessary or proper in
order to effectuate the delivery of the First Expansion Space to Tenant
on or prior to the First Expansion Space Scheduled Commencement
Date, but only if such lease terms and provisions are customarily found
in leases of Comparable Buildings. In connection with the matters
described in clause (z) of the preceding sentence, Landlord shall include
in any such lease for the First Expansion Space all remedies relating to
the holdover of such tenant and increased holdover rent, as are
customarily found in leases of Comparable Buildings. If Landlord fails
to cause the First Expansion Space Inclusion Date to occur on or prior
to such First Expansion Space Scheduled Commencement Date and
such failure is due to (a) the holding over or retention of possession by
any tenant or occupant in the applicable First Expansion Space, and/or
(b) any other reason outside of Landlord's control, then provided
Landlord has complied with the provisions of this Section 18.7.1,
including (x), (y) and (z) above and the following two (2) sentences, (i)
Landlord shall not be subject to any liability for failure to give
possession on such date, and (ii) Tenant waives the right to rescind its
lease of the original Premises leased hereunder or to recover any
damages that may result from the failure of Landlord to deliver
possession of the First Expansion Space and agrees that the provisions
of this Section 18.7 shall constitute an "express provision to the
contrary" within the meaning of Section 223-a of the New York Real
Property Law. In order to timely deliver the First Expansion Space,
Landlord covenants and agrees that, if the then current occupant of the
First Expansion Space has not vacated the First Expansion Space at
least 40 days prior to the First Expansion Space Scheduled
Commencement Date, Landlord shall promptly institute and thereafter
diligently prosecute holdover or other appropriate proceedings (or
settle the same under a settlement stipulation providing for the
occupant to vacate the First Expansion Space on a date which
Landlord reasonably believes is a date earlier than the date on which
Landlord would obtain possession of the First Expansion Space if
Landlord were to continue to diligently prosecute such holdover or
other appropriate proceeding) against any occupant of the First
Expansion Space. Without limiting the generality of the foregoing, if
as a result of a non-appealable order of a court of competent
jurisdiction, such current occupant is not obligated to vacate the First
Expansion Space because of any act or failure to act on Landlord's
part, Landlord shall use its best efforts and take such action and pay
such sums as may be reasonably necessary to cause such holdover
tenant to vacate the First Expansion Space. Notwithstanding the
foregoing and notwithstanding Tenant's exercise of its right to cancel
its lease of the First Expansion Space in accordance with Section
18.7.2, Landlord shall be liable to Tenant for damages (including any
consequential or punitive damages) arising from Landlord's failure to
perform, including the reasonable out-of-pocket costs and expenses of
Tenant in relocating and occupying other space and for the reasonable
moving costs and other charges in connection therewith and for the
costs of operating from separate locations, it being understood that it is
a material part and element of this Lease that, upon the exercise of the
First Expansion Space Option and/or the Second Expansion Space
Option, Tenant shall be able to occupy three (3) contiguous floors of
the Building.
If Landlord fails to prosecute holdover proceedings against a holdover
tenant of the First Expansion Space to the extent and in the manner
such proceedings are required to be prosecuted in accordance with this
Lease and such holdover proceedings are reasonably necessary to
cause the delivery of the First Expansion Space on or prior to the First
Expansion Space Scheduled Commencement Date, then, after prior
written notice and 3 Business Days opportunity to cure, Tenant may
prosecute such holdover proceeding and/or an action for declaratory
relief, with Landlord's cooperation, at Landlord's sole cost and expense
and in Landlord's name.
XVIII.7.2 Cancellation Option. Notwithstanding Tenant's waiver
pursuant to Section 18.7.1(ii), if Landlord shall be unable to cause the
First Expansion Space Inclusion Date to occur on or prior to the date
which is 365 days after the First Expansion Space Scheduled
Commencement Date, then Tenant shall, at Tenant's option, have the
right to cancel its lease of the First Expansion Space by giving notice
(an "First Option Cancellation Notice") to Landlord within 30 days
after the expiration of such 365 day period, which cancellation shall be
effective as of the date on which Landlord receives the First Option
Cancellation Notice; provided, however, that if Landlord causes the
First Expansion Space Inclusion Date to occur on or prior to the date
on which Landlord receives Tenant's First Option Cancellation Notice,
such notice shall be null and void, and Tenant's lease of the First
Expansion Space shall continue in full force and effect in accordance
with the provisions of this Section 18.7, as if such Cancellation Notice
was never delivered.
SECTION XVIII.8 Conditions to Exercise of Option.
Notwithstanding the foregoing provisions of this Article XVIII, Tenant
may not exercise the First Expansion Option on any date on which
Tenant is in Material Default under this Lease beyond any applicable
grace, notice and cure period, and any exercise of such First Expansion
Option shall be deemed null and void and of no force and effect if on
the First Expansion Space Inclusion Date Tenant is in Material Default
under this Lease after the giving of any required notice and the
expiration of any required grace or cure period.
SECTION XVIII.9 Failure to Exercise First Expansion Option. If
Tenant does not elect to exercise the First Expansion Option in
accordance with this Article XVIII and within the applicable time
period, time being of the essence, then (a) Tenant shall have forever
waived and relinquished its right to exercise the First Expansion
Option, (b) Landlord shall at any time thereafter be entitled to lease the
space covered by the First Expansion Option in question to others at
such rental and upon such terms and conditions as Landlord in its sole
discretion may desire, and (c) Tenant, upon Landlord's request, shall
promptly deliver to Landlord (and any other Person designated by
Landlord) a notice acknowledging that Tenant has forever waived and
relinquished its right to exercise the First Expansion Option.
SECTION XVIII.10 First Expansion Option is Part of Lease. The
termination of this Lease shall also terminate and render void the First
Expansion Option whether or not the First Expansion Option shall
have been exercised. The First Expansion Option may not be severed
from this Lease or separately sold or transferred.
SECTION XVIII.11 [Intentionally Deleted.]
SECTION XVIII.12 Notice with Respect to Certain Leasing
Activities. Not later than thirty (30) days after Tenant makes a written
request to Landlord, and, in any event, no later than 10 days after
Landlord enters into any leasing activities with respect to any portion
of the 14th floor, Landlord shall advise Tenant (to the best of
Landlord's knowledge) of any leasing activities, and the lease terms
materially relevant to Tenant (such as demised space, lease term,
default, remedies and holdover provisions) being negotiated with
respect to compliance with this Article XVIII and the manner in which
the lease complies with the requirements of this Article XVIII, in each
case, with respect to the 14th floor only. As used herein, "leasing
activities" shall mean (i) any lease actually entered into between
Landlord and a tenant or other occupant with respect to the First
Expansion Space or (ii) any material lease negotiations then being
undertaken or about to be undertaken by Landlord or any Landlord
Party (such determination to be made by Landlord in the exercise of its
reasonable judgment), in each case, with respect to the 14th floor only.
Landlord shall deliver a copy of such lease to Tenant no later than 10
days after the execution of such lease; it being understood that
Landlord may redact out of the copy of such lease any portions of such
lease that are inapplicable to Tenant (such as, by way of illustration
only, the amount of rent or other amounts due thereunder or such other
material terms and provisions (other than such terms and provisions
relating to the term of the Lease, the conformity with Article XVIII and
the default, remedy and the holdover provisions)). Tenant agrees to
hold any such information it receives under this Section 18.12 in strict
confidence, but may use such information in order to enforce its rights
hereunder.
SECTION XVIII.13 Miscellaneous. If Landlord enters into any
written lease agreement with respect to the 14th floor with any person
(other than Tenant), Landlord agrees to include as an exhibit to such an
agreement a copy of or a summary of the relevant portions of this
Article 18.
ARTICLE XIX
SECOND EXPANSION OPTION
SECTION XIX.1 Grant of Second Expansion Option. Subject to and
in accordance with the provisions of this Article XIX, Tenant shall have
an option (the "Second Expansion Option") to lease the Second
Expansion Space (as defined below) for a term to commence as
provided in Section 19.2. Subject to the provisions of Section 19.8,
Tenant may elect to lease the Second Expansion Space pursuant to the
following procedure:
XIX.1.1 Not later than sixteen (16) months prior to the Second
Expansion Space Scheduled Commencement Date, Landlord shall give
Tenant a notice (the "Second Expansion Space Availability Notice")
setting forth (a) the date (the "Second Expansion Space Scheduled
Commencement Date") upon which Landlord determines the Second
Expansion Space will be available for lease by Tenant, which shall be a
date selected by Landlord in its sole discretion between October 1,
2008 and September 30, 2009 and (b) Landlord's estimate of what the
Second Expansion FMRV would be for the Second Expansion Space.
The "Second Expansion Space" shall consist of the balance of the
fourteenth (14th) floor of the Building which shall consist of
approximately 17,000 rentable square feet (after Tenant's exercise of
the Second Expansion Option or if Tenant didn't exercise such Second
Expansion Option, any portion of the fourteenth (14th) floor containing
approximately 17,000 rentable square feet). If Landlord shall fail or be
unable to give the Second Expansion Space Availability Notice on or
before March 30, 2008, Tenant shall deliver written notice to Landlord
stating such failure and demanding that Landlord deliver such notice,
and Landlord shall promptly respond in writing to Tenant's demand,
setting forth in reasonably sufficient detail the reasons for Landlord's
failure or inability to deliver the Second Expansion Space Availability
Notice. If Landlord has not, in good faith, delivered such Second
Expansion Space Availability Notice by May 30, 2008, Tenant may
deliver such First Expansion Space Availability Notice and seek all
legal remedies, including an action for declaratory or injunctive relief or
for any loss, injury or damage claimed by Tenant in connection with the
failure or refusal by Landlord to deliver such notice (except that
Landlord shall incur no liability whatsoever if the inability to deliver
such notice is due to Force Majeure, but Force Majeure shall not
include any rights or circumstances arising out of Landlord's previous
acts or failings to act or of any rights granted to any tenant or
occupant), which failure shall be considered to be an anticipatory
breach by Landlord of this Article XIX.
XIX.1.2 Not later than fifteen Business Days after Tenant's receipt of
the Second Expansion Space Availability Notice, Tenant shall give
Landlord a notice ("Second Expansion Notice") exercising the Second
Expansion Option.
SECTION XIX.2 Inclusion of Second Expansion Space. Subject to
the provisions of Section 19.8, if Tenant timely commits to exercise the
Second Expansion Option, then the Second Expansion Space shall be
added to and included in the Premises for the period (the "Second
Expansion Space Term") (a) commencing on the date (the "Second
Expansion Space Inclusion Date") which is the later to occur of (i) the
date on which Tenant shall take exclusive possession of the Second
Expansion Space for purposes of construction or the conduct of
business, (ii) the date on which Landlord shall have delivered exclusive
possession of the Second Expansion Space to Tenant, and (iii) the
Second Expansion Space Scheduled Commencement Date, and (b)
ending on the Expiration Date.
XIX.2.1 Terms of Inclusion. The inclusion of the Second Expansion
Space shall be upon all the terms and conditions of this Lease, except
as otherwise stated in this Article XIX.
XIX.2.2 Tenant's Share. As of the Second Expansion Space Inclusion
Date, Tenant's Share shall be increased by a percentage equal to (a) the
Second Expansion Space Rentable Area divided by (b) the Unit Area.
XIX.2.3 Rentable Area. The Rentable Area of the Second Expansion
Space (the "Second Expansion Space Rentable Area") shall be the
rentable square feet measured in accordance with Exhibit M and set
forth in Landlord's Second Expansion Space Availability Notice, or
such other number reasonably agreed upon by Landlord and Tenant,
notwithstanding any subsequent remeasurements.
XIX.2.4 Condition of Second Expansion Space. Tenant shall accept
the Second Expansion Space in its "AS IS" condition and state of
repair existing as of the Second Expansion Space Inclusion Date,
except that Landlord will provide and install demising walls in the
Second Expansion Space and be responsible for the elevator lobby and
other common areas on that floor. Furthermore, Landlord shall not be
required to perform any work, supply any materials or incur any
expense (including the granting of any allowance to Tenant with
respect thereto) to prepare the Second Expansion Space for Tenant's
occupancy.
XIX.2.5 Rent Abatement. Tenant shall not be entitled to a credit
against Rent or any other rent concession or abatement of Rent, or
allowance, with respect to the Second Expansion Space.
SECTION XIX.3 Second Expansion Space Base Rent. The Base
Rent per annum for the Second Expansion Space during the Second
Expansion Space Term ("Second Expansion Space Base Rent") shall
be an amount equal to the greater of (a) 95% of the product of (i) the
Second Expansion Space Rentable Area, multiplied by (ii) the Second
Expansion FMRV as of the Second Expansion Space Scheduled
Commencement Date, as determined in accordance with Section 19.4
and (b) (i) the Second Expansion Space Rentable Area, multiplied by
(ii) the Adjusted Escalated Rent, as of the Second Expansion Space
Scheduled Commencement Date, as determined in accordance with
Section 19.3.1.
19.3.1 Adjusted Escalated Rent. (a)(i) In the event that Landlord has
entered into a valid, binding and effective lease with another occupant
or otherwise receives payment for the use and occupancy of the
Second Expansion Space with respect to the Second Expansion Space
prior to the date of determination of the Second Expansion FMRV, the
term "Adjusted Escalated Rent" shall mean an amount equal to (x) the
Escalated Rent minus (y) $9.12 per square foot plus (z) the Future
Value Amount (as hereinafter defined) amortized over the then
remaining term of this Lease; provided that in no event shall the
Adjusted Escalated Rent exceed the Escalated Rent. Nothing herein
shall limit Landlord's obligations under Section 19.7.
(ii) In the event that Landlord has not entered into a valid, binding
and effective lease or otherwise receives payment for the use and
occupancy of the Second Expansion Space with respect to the Second
Expansion Space prior to the date of determination of the Second
Expansion FMRV, the term "Adjusted Escalated Rent" shall mean an
amount equal to the Escalated Rent
(b) As used herein, the following terms shall have the following
meanings:
(i) "Applicable Period" shall mean the period commencing on the
Commencement Date and ending on the Second Expansion Space
Commencement Date.
(ii) "Escalated Rent" shall mean the base rent payable by Tenant on
the Second Expansion Space Scheduled Commencement Date,
together with all additional rent (on a per annum basis) payable by
Tenant pursuant to Article 4 as of the date of determination of the
Second Expansion FMRV, which amount shall be expressed as an
amount of money per square foot in respect of the Premises.
(iii) "Future Value Amount" shall mean an amount equal to the
future value, determined as of the Second Expansion Space
Commencement Date of (x) $14.22 per square foot minus (y) the
annualized "net effective rent" (as hereinafter defined) for such lease,
determined with respect to the Applicable Period and using an imputed
interest rate equal to eight percent (8%) per annum discounted monthly
for the Applicable Period.
(iv) "net effective rent" shall mean, with respect to any lease
entered into for all or any portion of the Second Expansion Space, the
rent provided for in such lease and other consideration to Landlord
adjusted to give effect to any rent offsets or abatements, improvement
funds, concessions, bonuses, free or reduced rental, rebates, cash
contributions, tenant work allowances or the like; it being the intent of
the parties hereto, that the "net effective rent" shall reflect the rent for
such space under the lease and other consideration received by
Landlord with respect to such lease after taking into account the
foregoing factors, which amount shall be expressed as an amount of
money per square foot per annum in respect of the premises demised
under such lease and amortized over the Applicable Period.
(c) As an example of the method of calculating the Adjusted Escalated
Rent, the parties agree that the example in Section 18.3.1(c) sets forth
the mechanics for determining the Adjusted Escalated Rent and the
"net effective rent".
SECTION XIX.4 Second Expansion FMRV.
XIX.4.1 Definition. The "Second Expansion FMRV" shall be
the rental value of the Second Expansion Space in the Second
Expansion Market (as hereinafter defined) during a term that most
closely matches the length of the Second Expansion Space Term (the
"Second Expansion Market Term") if such term commenced on the
Second Expansion Space Scheduled Commencement Date or, if such
amount is greater, the amount specified in Section 19.3(b). Such rental
value shall be expressed as an amount of money per square foot of
Rentable Area adjusted to remain constant over the entire Second
Expansion Market Term. "Second Expansion Market" shall mean the
rental market during the Second Expansion Market Term for tenants in
Comparable Buildings seeking comparable unencumbered expansion
space in their respective Comparable Buildings taking into account the
following factors and additional assumptions:
(a) the lease will be for the Second Expansion Market Term;
(b) Tenant will pay with respect to the Second Expansion Space its
proportionate share of Taxes over the Base Taxes set forth in Section
19.5;
(c) Tenant will pay with respect to the Second Expansion Space its
proportionate share of Operating Expenses over the Base Operating
Expenses set forth in Section 19.5;
(d) to the extent the Second Expansion Space shall be compared
with other space, the rentable area of such other space shall be
measured in a similar manner as the Premises are measured herein;
(e) Tenant will be leasing the Second Expansion Space "As Is" in
accordance with Section 19.2.4. All costs and expenses Tenant may
incur in order to bring the Second Expansion Space into compliance
with Laws, including, but not limited to, compliance with ADA
Requirements and abatement or removal of any ACM or to perform
demolition in the space shall be taken into consideration as a savings to
Landlord and serve to reduce the Second Expansion FMRV in the
Second Expansion Space.
(f) the Second Expansion FMRV shall be calculated based on
Landlord's actual expense for brokerage commission, if any, to the
Brokers for the Second Expansion Space for the Second Expansion
Market Term;
(g) the Second Expansion FMRV shall be calculated as if Tenant
will be leasing an aggregate of (i) the Rentable Area of the Second
Expansion Space plus (ii) the Rentable Area of the balance of the
Premises;
(h) the Second Expansion FMRV shall be calculated assuming that
Landlord has had a reasonable time to locate a tenant who rents with
knowledge of the uses to which the Second Expansion Space can be
adapted, that neither Landlord nor the prospective tenant is under any
compulsion to rent, and that Landlord and the prospective tenant
negotiate at arm's length and in good faith; and
(i) that Landlord will not be obligated to perform any work in the
Second Expansion Space for the Second Expansion Space Term in
order to prepare the same for the prospective tenant's occupancy, or to
contribute or loan any money on account thereof, whether in the form
of a tenant fund, tenant loan, rent credit or concession, leasing
inducement or otherwise and these factors shall be taken into
consideration as a savings to Landlord and serve to reduce the Second
Expansion FMRV in the Second Expansion Space.
XIX.4.2 Procedure for Determining Second Expansion FMRV.
For purposes of determining the Second Expansion FMRV, the
following procedure shall apply:
XIX.4.2.1 [Intentionally Deleted.]
XIX.4.2.2 Within 15 Business Days after Tenant's receipt of
Landlord's Second Expansion Space Availability Notice, Tenant shall
give Landlord written notice ("Tenant's Second Expansion Response
Notice") electing either (a) to accept the Second Expansion FMRV set
forth in Landlord's Second Expansion Space Availability Notice, in
which case the Second Expansion FMRV shall be the Second
Expansion FMRV set forth in Landlord's Second Expansion Space
Availability Notice, or (b) not to accept Landlord's determination of the
Second Expansion FMRV, in which case (i) Tenant's Second
Expansion Response shall set forth Tenant's estimate of what the
Second Expansion FMRV would be for the Second Expansion Space
and (ii) Landlord and Tenant shall endeavor to agree upon the Second
Expansion FMRV on or before the date that is 15 days after Landlord's
receipt of Tenant's Second Expansion Response Notice. If Landlord
and Tenant are unable to agree upon the Second Expansion FMRV
within such 15-day period, then the Second Expansion FMRV shall be
determined by arbitration pursuant to Section 16.21. If Tenant fails to
deliver Tenant's Second Expansion Response Notice within the 15-day
period following its receipt of Landlord's Second Expansion Space
Availability Notice, Tenant shall be conclusively deemed to have
accepted Landlord's determination of the Second Expansion FMRV as
set forth in Landlord's Second Expansion Space Availability Notice.
XIX.4.2.3 In the event that the Second Expansion FMRV is
determined in accordance with arbitration pursuant to Section 16.21 to
be the Second Expansion FMRV set forth in Landlord's Second
Expansion Space Availability Notice, then Tenant shall have the right
to rescind Tenant's Second Expansion Notice given in accordance with
Section 19.1.2; provided that, no later than 10 days after such
determination, Tenant provides written notice ("Tenant's Second
Expansion Rescission Notice") to Landlord exercising the aforesaid
recision right. In the event Tenant timely delivers Tenant's Second
Expansion Rescission Notice to Landlord, time being of the essence,
then Tenant shall be deemed not to have timely delivered the Second
Expansion Notice pursuant to the provisions of this Article XIX, and
the terms and provisions of Section 19.9 shall thereafter apply.
XIX.4.3 [Intentionally Deleted.]
XIX.4.4 Memorializing Instrument. After a determination of the
Second Expansion FMRV has been made, the parties shall execute and
deliver to each other an instrument setting forth the amount of Base
Rent for such Second Expansion Space Term, but the failure to do so
shall not affect Tenant's obligation to pay such Base Rent.
SECTION XIX.5 Tax and Operating Expense Payments. Tenant shall
pay to Landlord Additional Rent with respect to the Second Expansion
Space from and after the Second Expansion Space Inclusion Date in
accordance with all of the terms and conditions of Article IV, except
that:
(a) Tenant's Share shall be increased as set forth in Section 19.2.2
to reflect such Second Expansion Space;
(b) the Base Taxes with respect to such Second Expansion Space
shall be the Taxes for the Tax Year in which the Second Expansion
Space Inclusion Date occurs; and
(c) the Base Operating Expenses with respect to such Second
Expansion Space shall be the Operating Expenses for the Lease Year in
which the Second Expansion Space Inclusion Date occurs.
SECTION XIX.6 Improvements. Any work performed by Tenant in
any Second Expansion Space shall be subject to the terms, conditions
and provisions of Section 8.1 of this Lease. All Alterations permitted
to be made to any Second Expansion Space shall be at Tenant's sole
cost and expense.
SECTION XIX.7 Landlord's Inability to Deliver Second Expansion
Space.
XIX.7.1 Generally. Once Tenant has delivered the Second
Expansion Notice, Landlord shall take all actions necessary or desirable
to deliver possession of the Second Expansion Space to Tenant on or
prior to the Second Expansion Space Scheduled Commencement Date,
which efforts shall include the actions set forth in clause (iii) below. In
connection therewith and without limiting the generality of the
foregoing, Landlord agrees that any lease or other right relating to the
fourteenth (14) floor of the Building (x) shall be expressly subject to
Tenant's rights under this Lease, including Articles XIX and XIX, (y)
shall expire no later than forty-five (45) days prior to the Second
Expansion Space Scheduled Commencement Date, and (z) shall
include such lease terms and provisions as are necessary or proper in
order to effectuate the delivery of the Second Expansion Space to
Tenant on or prior to the Second Expansion Space Scheduled
Commencement Date, but only if such lease terms and provisions are
customarily found in leases of Comparable Buildings. In connection
with the matters described in clause (z) of the preceding sentence,
Landlord shall include in any such lease for the Second Expansion
Space all remedies relating to the holdover of such tenant and increased
holdover rent, as are customarily found in leases of Comparable
Buildings. If Landlord fails to cause the Second Expansion Space
Inclusion Date to occur on or prior to such Second Expansion Space
Scheduled Commencement Date and such failure is due to (a) the
holding over or retention of possession by any tenant or occupant in
the applicable Second Expansion Space, and/or (b) any other reason
outside of Landlord's control, then provided Landlord has complied
with the provisions of this Section 19.7.1, including (x), (y) and (z)
above and the following two (2) sentences, (i) Landlord shall not be
subject to any liability for failure to give possession on such date, and
(ii) Tenant waives the right to rescind its lease of the original Premises
leased hereunder or to recover any damages that may result from the
failure of Landlord to deliver possession of the Second Expansion
Space and agrees that the provisions of this Section 19.7 shall
constitute an "express provision to the contrary" within the meaning of
Section 223-a of the New York Real Property Law. In order to timely
deliver the Second Expansion Space, Landlord covenants and agrees
that, if the then current occupant of the Second Expansion Space has
not vacated the Second Expansion Space at least 40 days prior to the
Second Expansion Space Scheduled Commencement Date, Landlord
shall promptly institute and thereafter diligently prosecute holdover or
other appropriate proceedings (or settle the same under a settlement
stipulation providing for the occupant to vacate the Second Expansion
Space on a date which Landlord reasonably believes is a date earlier
than the date on which Landlord would obtain possession of the
Second Expansion Space if Landlord were to continue to diligently
prosecute such holdover or other appropriate proceeding) against any
occupant of the Second Expansion Space. Without limiting the
generality of the foregoing, if as a result of a non-appealable order of a
court of competent jurisdiction, such current occupant is not obligated
to vacate the Second Expansion Space because of any act or failure to
act on Landlord's part, Landlord shall use its best efforts and take such
action and pay such sums as may be reasonably necessary to cause such
holdover tenant to vacate the Second Expansion Space.
Notwithstanding the foregoing and notwithstanding Tenant's exercise
of its right to cancel its lease of the Second Expansion Space in
accordance with Section 19.7.2, Landlord shall be liable to Tenant for
damages (including any consequential or punitive damages) arising
from Landlord's failure to perform, including the reasonable out-of-
pocket costs and expenses of Tenant in relocating and occupying other
space and for the reasonable moving costs and other charges in
connection therewith and for the costs of operating from separate
locations, it being understood that it is a material part and element of
this Lease that, upon the exercise of the Second Expansion Space
Option and/or the Second Expansion Space Option, Tenant shall be
able to occupy three (3) contiguous floors of the Building.
If Landlord fails to prosecute holdover proceedings against a holdover
tenant of the Second Expansion Space to the extent and in the manner
such proceedings are required to be prosecuted in accordance with this
Lease and such holdover proceedings are reasonably necessary to
cause the delivery of the Second Expansion Space on or prior to the
Second Expansion Space Scheduled Commencement Date, then, after
prior written notice and 3 Business Days opportunity to cure, Tenant
may prosecute such holdover proceeding and/or an action for
declaratory relief, with Landlord's cooperation, at Landlord's sole cost
and expense and in Landlord's name.
XIX.7.2 Cancellation Option. Notwithstanding Tenant's waiver
pursuant to Section 19.7.1(ii), if Landlord shall be unable to cause the
Second Expansion Space Inclusion Date to occur on or prior to the
date which is 365 days after the Second Expansion Space Scheduled
Commencement Date, then Tenant shall, at Tenant's option, have the
right to cancel its lease of the Second Expansion Space by giving notice
(an "Second Option Cancellation Notice") to Landlord within 30 days
after the expiration of such 365 day period, which cancellation shall be
effective as of the date on which Landlord receives the Second Option
Cancellation Notice; provided, however, that if Landlord causes the
Second Expansion Space Inclusion Date to occur on or prior to the
date on which Landlord receives Tenant's Second Option Cancellation
Notice, such notice shall be null and void, and Tenant's lease of the
Second Expansion Space shall continue in full force and effect in
accordance with the provisions of this Section 19.7, as if such
Cancellation Notice was never delivered.
SECTION XIX.8 Conditions to Exercise of Option. Notwithstanding
the foregoing provisions of this Article XIX, Tenant may not exercise
the Second Expansion Option on any date on which Tenant is in
Material Default under this Lease beyond any applicable grace, notice
and cure period, and any exercise of such Second Expansion Option
shall be deemed null and void and of no force and effect if on the
Second Expansion Space Inclusion Date Tenant is in Material Default
under this Lease after the giving of any required notice and the
expiration of any required grace or cure period.
SECTION XIX.9 Failure to Exercise Second Expansion Option. If
Tenant does not elect to exercise the Second Expansion Option in
accordance with this Article XIX and within the applicable time period,
time being of the essence, then (a) Tenant shall have forever waived
and relinquished its right to exercise the Second Expansion Option, (b)
Landlord shall at any time thereafter be entitled to lease the space
covered by the Second Expansion Option in question to others at such
rental and upon such terms and conditions as Landlord in its sole
discretion may desire, and (c) Tenant, upon Landlord's request, shall
promptly deliver to Landlord (and any other Person designated by
Landlord) a notice acknowledging that Tenant has forever waived and
relinquished its right to exercise the Second Expansion Option.
SECTION XIX.10 Second Expansion Option is Part of Lease. The
termination of this Lease shall also terminate and render void the
Second Expansion Option whether or not the Second Expansion
Option shall have been exercised. The Second Expansion Option may
not be severed from this Lease or separately sold or transferred.
SECTION XIX.11 [Intentionally Deleted.]
SECTION XIX.12 Notice with Respect to Certain Leasing Activities.
Not later than thirty (30) days after Tenant makes a written request to
Landlord, and, in any event, no later than 10 days after Landlord enters
into any leasing activities with respect to any portion of the 14th floor,
Landlord shall advise Tenant (to the best of Landlord's knowledge) of
any leasing activities, and the lease terms materially relevant to Tenant
(such as demised space, lease term, default, remedies and holdover
provisions) being negotiated with respect to compliance with this
Article XIX and the manner in which the lease complies with the
requirements of this Article XIX, in each case, with respect to the 14th
floor only. As used herein, "leasing activities" shall mean (i) any lease
actually entered into between Landlord and a tenant or other occupant
with respect to the Second Expansion Space or (ii) any material lease
negotiations then being undertaken or about to be undertaken by
Landlord or any Landlord Party (such determination to be made by
Landlord in the exercise of its reasonable judgment), in each case, with
respect to the 14th floor only. Landlord shall deliver a copy of such
lease to Tenant no later than 10 days after the execution of such lease;
it being understood that Landlord may redact out of the copy of such
lease any portions of such lease that are inapplicable to Tenant (such
as, by way of illustration only, the amount of rent or other amounts due
thereunder or such other material terms and provisions (other than such
terms and provisions relating to the term of the Lease, the conformity
with Article XIX and the default, remedy and the holdover
provisions)). Tenant agrees to hold any such information it receives
under this Section 19.12 in strict confidence, but may use such
information in order to enforce its rights hereunder.
SECTION XIX.13 Miscellaneous. If Landlord enters into any written
lease agreement with respect to the 14th floor with any person (other
than Tenant), Landlord agrees to include as an exhibit to such an
agreement a copy of or a summary of the relevant portions of this
Article 19.
ARTICLE XX
TENANT TERMINATION OPTION
SECTION XX.1 Termination Option. Provided Tenant is not then in
Material Default hereunder beyond the expiration of applicable grace
and cure periods at the time of the exercise of the termination option
and on the effective date of termination, Tenant shall have the option to
terminate this Lease with respect to the entire Premises only effective
upon January 31, 2008 or September 30, 2008; provided Tenant
provides Landlord with irrevocable written notice of such election to
terminate this Lease no less than twelve (12) months prior and no
earlier than twenty-four (24) months prior to the effective date of such
termination; and provided further that Tenant pays to Landlord the
Cancellation Fee, such Cancellation Fee to be due and payable upon
the giving of such notice of termination. In the event Tenant terminates
this Lease as provided herein, Tenant will surrender possession of the
Premises to Landlord on or prior to the effective date of termination in
accordance with the provisions of this Lease, as if the termination date
were the Expiration Date of this Lease. Upon written request by the
Landlord or Tenant, the other shall execute and deliver a surrender
agreement in form and substance satisfactory to them confirming the
exercise of Tenant's option to terminate this Lease.
SECTION XX.2 Cancellation Fee. (a) Landlord and Tenant agree
that the Cancellation Fee shall be determined as follows: (x)
$2,813,359.00 minus the Interest Factor (as hereinafter defined), if this
Lease is terminated effective as of January 30, 2008 and (y)
$2,542,428.00 minus the Interest Factor, if this Lease is terminated
effective as of September 30, 2008.
(b) As used herein, "Interest Factor" shall mean, as of the date Tenant
pays to Landlord the Cancellation Fee:
(i) an amount equal to the product of (x) $2,813,359.00 multiplied
by (y) the AAA corporate interest rate for a one year maturity then
available and publicly reported plus 2%, as such rate is reasonably
determined by Tenant in its notice of exercise in the event the
termination of the Lease is effective as of January 30, 2008;
(ii) an amount equal to the product of (x) $2,542,428.00 multiplied
by (y) the AAA corporate interest rate for a one year maturity then
available and publicly reported plus 2%, as such rate is reasonably
determined by Tenant in its notice of exercise in the event the
termination of the Lease is effective as of September 30, 2008.
(c) Tenant's payment of the Cancellation Fee using Tenant's Interest
Factor shall be deemed timely even if Landlord disagrees with the
Tenant's Interest Factor and the Interest Factor is subsequently
recalculated. Landlord may object to Tenant's Interest Factor and any
dispute, if not resolved within 15 days, shall be submitted to arbitration
pursuant to Section 16.21.
ARTICLE XXI
PARKING
SECTION XXI.1 Parking Space. Landlord hereby grants to Tenant a
non-exclusive right to use the parking areas established by the Board of
Managers and Landlord, as the case may be, for the use of the Unit
which shall be provided by Landlord for the accommodation and
parking of vehicles of tenants, their employees, invitees, or visitors.
These areas are shown on the Parking Plan annexed hereto as Exhibit
P. Tenant will be allocated 2 interior parking spaces and such interior
spaces will be on a non-reserved basis. Tenant, its employees, agents,
and invitees shall comply with all the rules and regulations, including
days and hours of operation, speed limits, parking allocations and any
other rules and regulations which are or may be hereafter promulgated
by Landlord or its garage concessionaire, if any, with respect to
parking of motor vehicles in said garage.
SECTION XXI.2 Limitation of Liability. Landlord shall have no
liability on account of any damage or loss to any vehicle or its contents,
regardless of cause, except Landlord's willful misconduct or gross
negligence, and Tenant hereby agrees to indemnify, hold harmless and
defend Landlord from and against any and all causes, claims, suits,
damages, and expenses (including reasonable attorneys' fees) arising
from the use of the parking areas in the Building by Tenant or by
anyone claiming by, through or under Tenant's privileges granted
hereunder.
SECTION XXI.3 Certain Rights of Landlord. At any time and from
time to time Landlord shall have the following rights:
(a) to move the location of the parking areas and change the layout
of the parking spaces therein provided; provided that the number and
size of parking spaces allocated to Tenant shall not be reduced;
(b) if required to do so by the Building Managers, to require
Tenant to reserve or otherwise identify Tenant's parking spaces or to
require Tenant's employees to identify their vehicles in a manner
reasonably determined by Landlord; and
(c) if required to do so by the Building Managers, to tow
unidentified or unmarked visitor or employee cars and to tow marked
cars of Tenant's employees and/or visitors in the event that Tenant's
employees or visitors are using more than Tenant's designated number
of parking spaces.
SECTION XXI.4 Tenant Obligations. Throughout the Term of this
Lease, Tenant shall comply in all respects with the reasonable rules and
regulations with regard to the parking system established by Landlord
and the Board of Managers, as the same may be modified from time to
time.
ARTICLE XXII
THE LOWER MANHATTAN PLAN
SECTION XXII.1 Certain Definitions.
(a) For purposes of this Article XXII, unless otherwise defined in
this Lease, all terms used herein shall have the meanings ascribed to
them in Title 4 of Article 4 of the New York Real Property Tax Law
(herein called the "Lower Manhattan Plan").
(b) For purposes of the Lower Manhattan Plan, Tenant's
Percentage Share (as such term is used in the Lower Manhattan Plan)
shall mean Tenant's Share, or if the Lower Manhattan Plan requires or
permits a different percentage and Tenant elects to use that percentage,
then, or such other percentage amount as may be required or permitted
pursuant to the provisions of the Lower Manhattan Plan.
SECTION XXII.2 LMP Abatement Benefits.
(a) For so long as Tenant continues to be eligible (or would
continue to be eligible but for Landlord's failure to comply with its
obligations under this Article XXII) for the real estate tax abatement
benefits of the Lower Manhattan Plan (herein called the "LMP
Abatement Benefits") with respect to the Premises, Landlord, at its sole
cost and expense, agrees to comply promptly with the provisions and
requirements of the Lower Manhattan Plan and the rules promulgated
thereunder (and to file such documents, certifications and statements as
may be required in order to obtain such LMP Abatement Benefits) as
the same relate to the Premises and to Landlord (in connection with
Tenant's eligibility for the LMP Abatement Benefits). After Tenant's
written request therefor, Landlord shall provide Tenant with notice
evidencing its payment of real estate taxes due on the Unit no later than
three (3) days prior to the due date of such taxes (the "Tax Notice").
(b) Tenant shall indemnify and hold harmless Landlord and all
Senior Interest Holders and its and their respective partners, directors,
officers, principals, shareholders, agents and employees from and
against any and all claims arising from or in connection with Tenant's
failure to comply with the provisions and requirements of the Lower
Manhattan Plan and the rules promulgated thereunder as same relate to
the Premises, together with all costs, expenses and liabilities incurred in
connection with each such claim or action or proceeding brought
thereon, including, without limitation, all attorneys' fees and expenses.
SECTION XXII.3 Certain Rent Abatements.
(a) In accordance with the Lower Manhattan Plan and
notwithstanding anything to the contrary contained in this Lease,
Landlord agrees to allow Tenant a credit against the Base Rent and
Additional Rent (including, without limitation, Tenant's Tax Payment
and Tenant's Operating Payment) payable by Tenant hereunder in an
amount that, in the aggregate, equals the full amount of any abatement
of real estate taxes granted for the Premises pursuant to the Lower
Manhattan Plan and actually received by Landlord (herein called the
"Actual LMP Benefits"). Landlord shall, within thirty (30) days after
its receipt of the Actual LMP Benefits, credit the full amount thereof
against the next installment(s) of Base Rent and/or Additional Rent
(including, without limitation, Tenant's Tax Payment and Tenant's
Operating Payment) becoming due hereunder.
(b) Tenant shall, within 15 days after Landlord provides Tenant
with notice thereof, promptly pay to Landlord, as Additional Rent
hereunder, the amount of all or any portion of the Actual LMP Benefits
that have been credited against Base Rent and/or Additional Rent
(including, without limitation, Tenant's Tax Payment and Tenant's
Operating Payment) becoming due hereunder, and which are thereafter
revoked, together with any interest and/or penalties imposed against
Landlord in connection with such revocation of such Actual LMP
Benefits; provided that no such payment shall be due by Tenant to the
extent such revocation is due to Landlord's failure to comply with the
Lower Manhattan Plan, the rules promulgated thereunder or the
provisions of this Article 22.
SECTION XXII.4 Notice to Tenant.
(a) In accordance with Section 499-c(5) of the Lower Manhattan
Plan, Landlord agrees and informs Tenant that:
(1) an application for abatement of real property taxes pursuant to
Title 4 of Article 4 of the New York Real Property Tax Law will be
made timely for the Premises;
(2) the rent, including amounts payable by Tenant for real property
taxes, will accurately reflect any abatement of real property taxes
granted pursuant to Title 4 of Article 4 of the New York Property Tax
Law for the Premises;
(3) at least thirty-five dollars per square foot must be spent on
improvements to the Premises and the common areas; and
(4) all abatements granted with respect to the Unit pursuant to
Title 4 of Article 4 of the New York Real Property Law will be
revoked if, during the Benefit Period, real estate taxes or water or
sewer charges or other lienable charges are unpaid for more than one
year, unless such delinquent amounts are paid as provided in
subdivision four of section four hundred ninety-nine-f of Title 4 of the
New York Real Property Law.
The provisions of this Section 22.4(a) shall not reduce Tenant's rights
or Landlord's obligation under this Article XXII.
(b) Except as expressly provided in this Lease and its Exhibits,
nothing contained herein (including, without limitation, the provisions
of subsection 22.4(a)(3) hereof), shall be construed to impose any
obligation on Landlord to perform any improvements to the Premises
and/or the common areas to establish Tenant's eligibility for the LMP
Abatement Benefits. Landlord hereby acknowledges and agrees that
Tenant may apply all or any portion of the Allowance toward satisfying
the requirement of the Lower Manhattan Plan that at least thirty-five
dollars per square foot must be spent on improvements to the Premises
and the common areas.
SECTION XXII.5 Certain Covenants of Landlord.
(a) Landlord covenants and agrees as follows:
(i) Landlord shall timely pay all real estate taxes, water and sewer
charges and other lienable charges that become due and payable during
the period for which Tenant is entitled to receive the LMP Abatement
Benefits.
(ii) There shall be no real estate taxes, water and sewer charges or
other lienable charges due and owing with respect to the Real Property
or the Unit on the date the Abatement Application (as hereinafter
defined) is filed with the Department, unless such real property taxes or
charges are being paid in timely installments pursuant to a written
agreement with the Department or other appropriate agency.
(iii) Landlord shall, provided Tenant has complied with Section 22.8
(a) below, timely make all filings required to be made by Landlord in
order to obtain the LMP Abatement Benefits and Further Benefits.
(b) Landlord shall indemnify and hold harmless Tenant and its
partners, directors, officers, principals, shareholders, agents and
employees and their successors and assigns from and against any loss
of benefits under the Lower Manhattan Plan or Further Benefits arising
from Landlord's failure to comply with the provisions and requirements
of the Lower Manhattan Plan or relating to Further Benefits, and the
rules promulgated thereunder as same relate to the Premises (it being
understood and agreed that, except as expressly provided in this Lease
and its Exhibits, nothing contained herein (including, without limitation,
the provisions of subsection 22.4(a)(3) hereof), shall be construed to
impose any obligation on Landlord to perform any improvements to
the Premises and/or the common areas to establish Tenant's eligibility
for the LMP Abatement Benefits). .
SECTION XXII.6 Abatement Application.
(a) Landlord agrees to cooperate with Tenant and to execute,
deliver and file, the Abatement Application (as hereinafter defined),
together with the affidavit required by Section 499-c(7) of the Lower
Manhattan Plan and such other applications as Tenant reasonably
believes is necessary to enable Tenant to receive benefits under the
Lower Manhattan Plan tax abatement and energy programs or Further
Benefits within 10 Business Days after Tenant delivers to Landlord the
Abatement Application, affidavit and such other applications completed
and ready for filing.
(b) Landlord agrees to cooperate with Tenant and to execute,
deliver and file in a timely manner, an application (the "Abatement
Application") for a certificate of abatement in accordance with Section
499-d of the Lower Manhattan Plan; provided that Tenant delivers to
Landlord the form of Abatement Application (and such application is
completed as to Tenant, but not as to Landlord) that is needed for
filing. Landlord further agrees to provide all other information required
by the New York City Department of Finance pursuant to Section 499-
d of the Lower Manhattan Plan and to otherwise comply with the
provisions of said Section 499-d.
(c) For so long as Tenant continues to be eligible (or would
continue to be eligible but for Landlord's failure to comply with its
obligations under this Article XXII) for the LMP Abatement Benefits
with respect to the Premises, Landlord, upon not less than ten (10)
Business Days advance written notice from Tenant, agrees to
cooperate with Tenant to annually execute, deliver and file in a timely
manner a certificate of continuing eligibility in accordance with Section
499-f of the Lower Manhattan Plan.
(d) Landlord shall be responsible for all costs incurred by Landlord
in connection with the performance of Landlord's obligations pursuant
to this Article XXII, including, without limitation, the amount of any
administrative charges or fees imposed by the Department in
connection with such compliance.
SECTION XXII.7 Further Cooperation; Further Benefits.
Upon Tenant's written request therefor, Landlord hereby agrees to
provide Tenant with such further cooperation (herein called "Further
Cooperation"), at Landlord's sole cost and expense, as may reasonably
be requested by Tenant (including, without limitation, such actions as
may be required by applicable local, state or federal law, and Landlord
shall use all reasonable efforts to cause the Board of Managers to take
any actions which are required to be taken by them) to assist Tenant in
obtaining any incentives, subsidies, refunds or payments (herein called
"Further Benefits") made available to Tenant by (i) any modification to
or amendment of the Lower Manhattan Plan, (ii) any program of the
New York City Industrial Development Agency or any other
governmental agency, including but not limited to the Empire State
Development Organization and the New York City Economic
Development Corporation or (iii) any public utility; provided and on
condition that:
(i) the receipt by Tenant of such Further Benefits would not reduce or
otherwise adversely affect the eligibility of Landlord or any other tenant
of the Unit to receive any incentives, subsidies, refunds or payments;
and
(ii) Tenant shall indemnify and hold harmless Landlord and all Senior
Interest Holders and its and their respective partners, directors, officers,
principals, shareholders, agents and employees, and Landlord shall
indemnify and hold harmless Tenant and its respective partners,
directors, officers, principals, shareholders, agents and employees, in
each case, from and against any and all claims arising from or in
connection with the other party's negligence or willful misconduct with
respect to the matters in this Section 22.7 and the receipt by Tenant of
such Further Benefits, together with all costs, expenses and liabilities
incurred in connection with each such claim or action or proceeding
brought thereon, including, without limitation, all attorneys' fees and
expenses.
In furtherance of the foregoing, with respect to Tenant's Allowance
hereunder, upon Tenant's prior written request therefor, Landlord
agrees to use any certificate of exemption provided to Landlord to
exclude, to the extent legally permissible therefor, sales and use tax on
Tenant's behalf.
SECTION XXII.8 Certain Covenants by Tenant.
(a) Tenant shall deliver to Landlord a reminder notice of any
document, certification, statement or similar instrument that is required
to be filed by Landlord in order to obtain LMP Abatement Benefits (or
is otherwise reasonably necessary to obtain the tax benefits
contemplated by this Article XXII) or Further Benefits at least 15
Business Days prior to the deadline for such filing; it being understood
and agreed that such reminder notice shall describe in reasonably
sufficient detail the nature and purpose of such filing and shall contain a
copy of such filing (which shall be completed as to Tenant, if
applicable).
(b) Notwithstanding anything in this Lease to the contrary,
Landlord shall not be liable for any losses, costs or expenses arising
from Tenant's failure to comply with the provisions and requirements
of Section 22.4(a)(3) and Section 22.8(a).
SECTION XXII.9 Tenant's Right to Cure. In the event that (i)
Landlord fails to comply with the covenants contained in Section
22.5(a)(i) with respect to the payment of real estate taxes, water and
sewer charges and other lienable charges, after 15 Business Days prior
written notice, and (ii) as a result of such failure to pay, Tenant is likely
to lose its LMP Abatement Benefits, then Tenant shall be permitted, in
the name of Landlord, to make any such payments and Tenant shall be
entitled to an appropriate credit against Rent to the extent of any
payments actually made by Tenant with respect to such taxes, water
and sewer charges and other lienable charges.
ARTICLE XXIII
STORAGE SPACE
SECTION XXIII.1 Demise of Storage Space. Tenant hereby leases
from Landlord, and Landlord hereby leases to Tenant for the Term of
this Lease approximately 1,000 square feet of storage space located in
the basement of the Building on Sublevel C-3, as more particularly
identified on Exhibit U (the "Storage Premises"), which Storage
Premises shall be separately partitioned by Landlord, at Landlord's sole
cost and expense; it being agreed that metal fencing would be
acceptable partitioning. Tenant shall pay to Landlord monthly
additional Base Rent for the Storage Premises as follows: (a) Twelve
Thousand and 00/100 Dollars ($12,000.00) per annum for the period
commencing on the Base Rent Commencement Date and ending on the
day immediately preceding the tenth (10th) anniversary of the
Commencement Date; and (b) Fourteen Thousand and 00/100 Dollars
($14,000.00) per annum for the period commencing on the tenth (10th)
anniversary of the Commencement Date and ending on the Expiration
Date. In the event that this Lease shall be extended pursuant to Article
XVII hereof, Landlord and Tenant shall mutually agree on the rent to
be paid for the Storage Premises during such renewal term.
SECTION XXIII.2 Manner of Payment. Tenant agrees to pay the
additional Base Rent for the Storage Premises set forth above in the
same manner as provided in Article 3.1 of this Lease for the payment of
Base Rent.
SECTION XXIII.3 Use. Tenant shall use the Storage Premises only
as storage space, printing, photocopying, multilith or offset printing in
connection with the business conducted by Tenant at the Premises
pursuant to this Lease and for no other purpose. Except as expressly
set forth herein, the Storage Premises (and Tenant's use thereof) shall
be subject to all of the terms and provisions of this Lease applicable to
the Premises, as well as all other reasonable rules and regulations as
may, from time to time, be established by Landlord regarding use of the
Storage Premises.
SECTION XXIII.4 No Hazardous Materials. Tenant shall not place
or store in the Storage Premises any Hazardous Materials. Tenant shall
not place or store any materials store in the Storage Premises directly in
contact with the floor of the Storage Premises.
SECTION XXIII.5 Surrender of Storage Premises. Upon the
expiration or termination of this Lease, Tenant shall surrender the
Storage Premises to Landlord vacant and broom clean and in
substantially the same condition as originally delivered to Tenant
(reasonable wear and tear and damage by casualty excepted).
SECTION XXIII.6 Right of First Offer for Additional Storage Space.
(a) As used herein, the following terms shall have the following
meanings:
(i) "Available for Lease" means, as of any date, with respect to
any First Offer Storage Space, that Landlord is then prepared to offer
such First Offer Storage Space for lease in the general leasing market
(including, without limitation, to other occupants of the Building,
subject to the immediately following sentence), regardless of the
proposed commencement date of such lease. Space shall not be
deemed to be "Available for Lease" if it is subject to any rights of first
offer, first refusal, renewal or expansion rights granted to other existing
tenants in the Building.
(ii) "First Offer Storage Space" means any storage space located in the
sub-basement areas of the Building and otherwise allocable to
Landlord.
(iii) "First Offer Storage Period" means the six (6) month period after
Tenant has irrevocably exercised the First Expansion Option and the
six (6) month period after Tenant has irrevocably exercised the Second
Expansion Option.
(b) If at any time during the First Offer Storage Period, Tenant shall
send to Landlord a notice that Tenant desires to lease additional
storage space in the Building and, at the time Landlord receives such
notice, any First Offer Storage Space shall be Available for Lease,
Landlord shall notify Tenant (a "First Offer Storage Space Availability
Notice") describing such First Offer Storage Space and its anticipated
date of availability. If Tenant shall deliver to Landlord a notice (a "First
Offer Storage Space Acceptance") accepting such First Offer Storage
Space within 10 Business Days of receipt of the First Offer Storage
Space Availability Notice, then the First Offer Storage Space shall be
added to the Storage Premises on all of the terms and provisions of this
Lease; provided the Rent for such First Offer Storage Space shall be
the greater of (x) the then escalated Rent (on a per square foot basis)
applicable to the balance of the Storage Premises and (y) 95% of the
fair market rent for the First Offer Storage Space as reasonably
determined by Landlord.
(c) If Tenant does not timely deliver to Landlord a First Offer Storage
Space Acceptance in response to a First Offer Storage Space
Availability Notice in accordance with this Section 23, time being of
the essence, then Tenant shall have waived and relinquished its rights
under this Section 23 with respect to the First Storage Space described
in such First Offer Storage Space Availability Notice and Landlord
shall at any time thereafter be entitled to offer, show, market and lease
such First Offer Storage Space to others at such rental rates and upon
such terms as Landlord in its sole discretion may desire.
ARTICLE XXIV
NET WORTH OF TENANT
SECTION XXIV.1 Net Worth Definitions. For the purposes of this
Lease, the following terms shall have the indicated meanings:
XXIV.1.1 "Net Worth" means the consolidated net worth of
Tenant as set forth in the annual audited consolidated financial
statement of Tenant prepared in accordance with GAAP.
XXIV.1.2 "Minimum Net Worth" means, except as modified by
Section 24.4 hereof, a Net Worth no less than the following amounts
during the following periods:
Amount From To (and including)
$30,000,000 Commencement Date March 31, 1997
$27,000,000 April 1, 1997 March 31, 1998
$24,000,000 April 1, 1998 March 31, 1999
$21,000,000 April 1, 1999 March 31, 2000
$18,000,000 April 1, 2000 March 31, 2001
$10,000,000 April 1, 2001 March 31, 2002
$ 9,000,000 April 1, 2002 March 31, 2003
$ 8,000,000 April 1, 2003 March 31, 2004
$ 7,000,000 April 1, 2004 March 31, 2005
$ 6,000,000 April 1, 2005 March 31, 2006
$ 5,000,000 April 1, 2006 March 31, 2007
$ 4,000,000 April 1, 2007 March 31, 2008
$ 3,000,000 April 1, 2008 March 31, 2009
$ 2,000,000 April 1, 2009 March 31, 2010
$ 1,000,000 April 1, 2010 September 30, 2013
SECTION XXIV.2 Maintenance of Net Worth. From the
Commencement Date through and including the earlier to occur of (i)
September 30, 2013 and (ii) the expiration or sooner termination of this
Lease and, in either case, the payment in full of all of Tenant's
obligations hereunder, Tenant covenants and agrees to maintain
Tenant's Net Worth in an amount in excess of the Minimum Net
Worth.
SECTION XXIV.3 Letter of Credit. In lieu of complying with the
provisions of Section 24.2 hereof, Tenant may, at any time during the
term of this Lease, deliver to Landlord a letter of credit (in form and
content reasonably satisfactory to Landlord) or deposit with Landlord a
cash security deposit, in each case, in an amount no less than the
amounts specified below, which letter of credit or security deposit shall
be used as security for any defaults or other amounts due to Landlord
under the Lease.
Amount Lease Year
$5,000,000 Commencement Date through 1st year anniversary of
the Rent Commencement Date
$4,500,000 1st year anniversary of the Rent Commencement Date
through 2nd year anniversary of Rent Commencement Date
$4,000,000 2nd year anniversary of the Rent Commencement Date
through 3rd year anniversary of Rent Commencement Date
$3,500,000 3rd year anniversary of the Rent Commencement Date
through 4th year anniversary of Rent Commencement Date
$3,000,000 4th year anniversary of the Rent Commencement Date
through 5th year anniversary of Rent Commencement Date
$2,500,000 5th year anniversary of the Rent Commencement Date
through 6th year anniversary of Rent Commencement Date
$2,000,000 6th year anniversary of the Rent Commencement Date
through 7th year anniversary of Rent Commencement Date
$1,500,000 7th year anniversary of the Rent Commencement Date
through 8th year anniversary of Rent Commencement Date
$1,000,000 8th year anniversary of the Rent Commencement Date
through 9th year anniversary of Rent Commencement Date
$ 500,000 9th year anniversary of the Rent Commencement Date
through September 30, 2013
SECTION XXIV.4 Certain Provisions Relating to the Renewal Term.
(a) With respect to the Renewal Term, but only to the extent required
in Section 14.2 relating to certain corporate or partnership transactions,
notwithstanding anything herein to the contrary, Minimum Net Worth
shall mean a Net Worth no less than the following amounts during the
following periods:
Amount From To (and including)
$ 5,000,000 October 1, 2013 September 30, 2014
$ 4,000,000 October 1, 2014 September 30, 2015
$ 3,000,000 October 1, 2015 September 30, 2016
$ 2,000,000 October 1, 2016 September 30, 2017
$ 1,000,000 October 1, 2017 September 30, 2018
(b) With respect to the Renewal Term only, Tenant may elect, in lieu
of complying with the Minimum Net Worth provisions of Section 14.2
hereof relating to certain corporate or partnership transactions, to
deliver to Landlord a letter of credit (in form and content reasonably
satisfactory to Landlord) or deposit with Landlord a cash security
deposit, in each case, in an amount no less than the amounts specified
below, which letter of credit or security deposit shall be used as
security for any defaults or other amounts due to Landlord under the
Lease.
Amount From To (and including)
$ 500,000 October 1, 2013 September 30, 2014
$ 400,000 October 1, 2014 September 30, 2015
$ 300,000 October 1, 2015 September 30, 2016
$ 200,000 October 1, 2016 September 30, 2017
$ 100,000 October 1, 2017 September 30, 2018
SECTION XXIV.5 Reporting Requirements. Tenant shall deliver to
Landlord, no later than ten (10) Business Days after Landlord's written
request therefor, a certificate of an officer of Tenant, certifying that Net
Worth, as shown in Tenant's annual certified financial statement,
exceeds the Minimum Net Worth (or that Tenant has complied with
the provisions of Section 24.4).
[Signature Page Follows]
IN WITNESS WHEREOF, Landlord and Tenant have hereunto
executed this Lease by their respective duly authorized representatives
as of the day and year first above written.
LANDLORD:
NY BROAD HOLDINGS, INC.,
a Delaware corporation
By:/s/ Xxxx Xxxxxx
Name:Xxxx Xxxxxx
Title: Vice-President
TENANT:
XXXXXXXXXX & CO. INC.
a New York corporation
By:/s/ X.X. Xxxxxxxxx
Name:Xxxxxx X. Xxxxxxxxx
Title: Chairman and CEO
EXHIBIT A
Floor Plan
EXHIBIT B
Definitions
Whenever used in this Lease, the following terms shall have the
indicated meanings:
AAA: The American Arbitration Association or any successor thereto.
Abatement Application: As defined in Section 22.6.
ACM: As defined in Schedule D-2,2 of Exhibit D.
Actual LMP Benefits: As defined in Section 22.3.
ADA Requirements: As defined in Section 5.4.
Additional Rent: As defined in Section 3.2.
Additional Tax Payment: As defined in Section 4.2.1.
Address of Landlord: As defined in Section 16.13.
Address of Tenant: As defined in Section 16.13.
Address of the Building Manager: Xxxxxxx Xxxxxxxxx, Building
Manager, 000 Xxxxx Xxxxxx Condominium, 000 Xxxxx Xxxxxx, Xxx
Xxxx, Xxx Xxxx.
Adjusted Unused Work Allowance: As defined in Exhibit D.
Adjusted Escalated Rent: As defined in Section 18.3.1.
Affiliate of Tenant: As defined in Section 14.8.
After Hours HVAC: As defined in Exhibit H.
All or Substantially All of the Premises: As defined in Section 14.3.1.
Allowance: As defined in Section 1.1.
Alteration: The installation, relocation or removal of any
Improvement. An Alteration may include (a) repair work performed
by Tenant pursuant to Article VIII or (b) compliance work performed
by Tenant pursuant to Section 5.3 if such work involves the
installation, relocation or removal of any Improvement.
Alteration Requirements: As defined in Exhibit J.
Available for Lease: As defined in Section 23.6.
Base Building: As defined in Schedule D-1 to Exhibit D.
Base Operating Expenses: As defined in Section 4.1.8.
Base Rent: As defined in Section 1.1.
Base Rent Commencement Date: As defined in Section 1.1.
Base Taxes: As defined in Section 4.1.3.
Base Year: As defined in Section 4.1.8.
Base Tax Year: As defined in Section 4.1.3.
Basic Capacity: As defined in Section 6.1.3.
Board of Managers: As defined in the Condominium Documents.
Building: The office tower building, other improvements and leasehold
interest in the underlying land known as The 000 Xxxxx Condominium,
located at 000 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx, and all rights and
interests appurtenant thereto.
Building Core: As defined in Exhibit M.
Building Directory: A computerized building directory located near
the Vietnam Veterans Memorial Park entrance and a separate
computerized building directory located near the 000 Xxxxx Xxxxxx
entrance, which shall meet the specifications set forth in Section 16.16.
Building Manager: As defined in Exhibit J.
Building Rules and Regulations: The rules and regulations for the
Building as set forth in Exhibit F attached hereto and any other building
rules and regulations adopted in accordance with Section 5.5.
Building Service Systems: All mechanical, electrical, plumbing, gas,
telecommunication, sanitary, sprinkler, HVAC, security, life safety,
elevator and other systems or facilities that service the Building or the
Unit up to the point of localized distribution to the floor on which the
Premises are located and excluding any systems or facilities located in
the Premises or extending beyond such point of localized distribution;
provided that Building Service Systems shall also include the Building
air distribution, electrical and plumbing systems to the points where (i)
the Building system's main distribution duct connects to Tenant's main
interior air distribution duct (it being intended that Building Service
Systems shall include the heat/recool coil unless the same is damaged
by Tenant or Tenant's servants, agents, employees, licensees or
invitees), (ii) the Building's electrical system's panel boxes serving the
Premises connect to the electrical system in the Premises and (iii) the
main vertical plumbing riser of the Building connects to all plumbing
lines in and serving the Premises (it being intended that Building
Service Systems shall include the valve at the connection point), but
excluding those components of distribution of such air distribution,
electrical and plumbing systems and any other systems which Tenant is
obligated to maintain and repair pursuant to Section 8.5,
Building Standards: The Building Standards for Alterations to the
Building as set forth in Exhibit E attached hereto and any other building
standards adopted in accordance with Section 5.5.
Business Days: As defined in the Declaration.
Business Hours: As defined in the Declaration.
By-Laws: The By-Laws of the Condominium, as the same may be
amended, restated, supplemented or otherwise modified from time to
time in accordance with the Declaration and the terms and provisions
of this Lease.
Cancellation Fee: As defined in Section 20.2.
Change Request: As defined in Exhibit D.
Cleaning Specifications: As defined in Section 6.4.
Commencement Date: As defined in Section 1.1.
Common Charges: As defined in the Declaration.
Common Elements: Those areas and facilities in the Building
designated in the Declaration as Common Elements or Limited
Common Elements, as such Common Elements or Limited Common
Elements may be changed from time to time pursuant to Law.
Common Expenses: As defined in the Declaration.
Comparable Buildings: Other first-class lower Manhattan high rise
office buildings which are comparable to the Building in size, location
and prestige.
Condominium: That leasehold condominium known as "The 125
Broad Condominium" established by the Declaration.
Condominium Documents: The Declaration, the By-Laws, the
Building Rules and Regulations and the Building Standards, as each of
the same may be amended, restated, supplemented or otherwise
modified from time to time.
Control: As defined in Section 14.8.
Corridor Area: As defined in Exhibit M.
Cost of the Work: As defined in Exhibit D.
Date of the Taking: As defined in Section 10.1.
Declaration: That Declaration of Condominium dated December 23,
1994, recorded in the Office of the Register of The City of New York
in New York County (the "Register's Office") on January 10, 1995, in
Reel 2171 at Page 1959, as amended by that certain First Amendment
to Declaration dated as of March 28, 1995, recorded in the Register's
Office on April 6, 1995, in Reel 2197 at Page 1306 and by that certain
Second Amendment to Declaration dated as of December __, 1996,
recorded in the Register's Office on February 6, 1997, in Reel 2025 at
Page 2419, and as the same may be further amended, restated,
supplemented or otherwise modified from time to time.
Decorative Alteration: As defined in Paragraph 7.6 of Exhibit J.
Deficiency: As defined in Section 15.2.3.
Direction of Payment Letter: As defined in Exhibit D.
Electric Inclusion Amount: As defined in Section 6.1.2.1.
Electricity Additional Rent: As defined in Section 6.1.1.
Eminent Domain: As defined in Section 10.1.
Escalated Rent: As defined in Section 18.3.1.
Escrow Agent: As defined in Section 16.3.
Escrow Agreement: As defined in Section 16.3.
Estimated Casualty Restoration Work Completion Date: As defined in
Section 9.1(e).
Estimated Operating Statement: As defined in Section 4.3.1.
Excess Costs: As defined in Exhibit D.
Execution Date: The date on which this Lease is executed and
delivered by the parties hereto as indicated on the cover page of this
Lease.
Expenses: As defined in Section 14.6.
Expiration Date: As defined in Section 1.1.
First Expansion FMRV: As defined in Section 18.4.1.
First Expansion Market: As defined in Section 18.4.1.
First Expansion Market Term: As defined in Section 18.4.1.
First Expansion Notice: As defined in Section 18.1.2.
First Expansion Option: As defined in Section 18.1.
First Expansion Space: As defined in Section 18.1.1.
First Expansion Space Availability Notice: As defined in Section
18.1.1.
First Expansion Space Base Rent: As defined in Section 18.3.
First Expansion Space Inclusion Date: As defined in Section 18.2.
First Expansion Space Rentable Area: As defined in Section 18.2.3.
First Expansion Space Scheduled Commencement Date: As defined in
Section 18.1.1.
First Expansion Space Term: As defined in Section 18.2.
First Offer Storage Availability Notice: As defined in Section 23.6.
First Offer Storage Period: As defined in Section 23.6.
First Offer Storage Space: As defined in Section 23.6.
First Offer Storage Space Acceptance: As defined in Section 23.6.
First Option Cancellation Notice: As defined in Section 18.7.2.
Force Majeure: As defined in Section 16.7.
Free Rent Period: As defined in Section 3.7.
Further Benefits: As defined in Section 22.7.
Further Cooperation: As defined in Section 22.7.
GAAP: Generally accepted accounting principles, consistently applied.
Ground Lease: That certain Lease dated December 31, 1968, between
Xxxx X. XxXxxxx and Sol G. Atlas, as landlord, and Two New York
Plaza Company, as tenant, a memorandum of which was recorded on
May 21, 1969, in the Register's Office, in Reel 140, Page 730, which
lease affects certain real property located in the City, County and State
of New York, commonly known as 000 Xxxxx Xxxxxx, Xxx Xxxx,
Xxx Xxxx, which lease has been amended by the following
agreements: (a) Memorandum of Agreement modifying Lease, dated as
of December 1, 1969, and recorded on March 19, 1970, in the
Register's Office in Reel 168, Page 1219; (b) Memorandum of
Modification of Lease with option to purchase, dated as of June 28,
1974, and recorded on July 2, 1974, in the Register's Office in Reel
318, Page 401; (c) Assignment of Lease to American Express
Company, dated June 28, 1974, and recorded in the Register's office in
Reel 318, Page 410; (d) Assignment of Lease to American Express
Company and American Express International Banking Company,
dated March 26, 1976, and recorded on April 19, 1976, in the
Register's Office in Reel 367, Page 80; (e) Assignment of Partial
Interest in Lease to Ardmore Properties, Inc., recorded in the Register's
Office in Reel 585. Page 1881; (f) Assignment of Lease by Ardmore
Properties, Inc. to American Express Company dated June 24, 1982,
and recorded in the Register's Office on June 29, 1982, in Reel 628,
Page 1067; (g) Amendment of Lease by and between Xxxxxx Atlas
Bass, Xxxx X. XxXxxxx and Xxxxxx Xxxx, as Executors under the Last
Will and Testament of Sol G. Atlas, deceased, and Xxxx X. XxXxxxx,
individually, as lessors, and American Express Company and American
Express International Banking Corporation, as lessees, dated July 1,
1979, and recorded in the Register's Office on April 1, 1983, in Reel
679, Page 1277; (h) Assignment of Lease by American Express
Company and American Express International Banking Corporation, as
assignors, to Olympia & York 000 Xxxxx Xxxxxx Company, as assignee,
dated February 1, 1983, and recorded in the Register's Office on
February 3, 1983, in Reel 695, Page 1305 and (i) Modification
Agreement for Ground Lease, dated as of December 28, 1994, among
Xxxxxx Atlas Bass and Xxxxxx Xxxxxxx, as Executors, and Xxxx
XxXxxxx, as Executrix, as Lessors, and Xxxxxxxx & Xxxxxxxx, Xxxxxxx
& Xxxxxxx, and Landlord, as Lessee.
Hazardous Materials: Any element, compound, chemical mixture,
contaminant, pollutant, material, waste or other substance which is
defined, determined or identified as a "hazardous substance",
"hazardous waste" or "hazardous material" under any federal, state or
local statute, regulation or ordinance applicable to the Premises, as well
as any amendments and successors to such statutes and regulations, as
may be enacted and promulgated from time to time, including, without
limitation, the following: (i) the Comprehensive Environmental
Response, Compensation and Liability Act of 1980 (codified in
scattered sections of 26 U.S.C., 33 U.S.C., 42 U.S.C. and 42 U.S.C.
9601 et seq.); (ii) the Resource Conservation and Recovery Act of
1976 (42 U.S.C. 6901 et seq.); (iii) the Hazardous Materials
Transportation Act (49 U.S.C. 1801 et seq.); (iv) the Toxic
Substances Control Act (15 U.S.C. 2601 et seq.); (v) the Clean
Water Act (33 U.S.C. 1251 et seq.); (vi) the Clean Air Act (42
U.S.C. 7401 et seq.); (vii) the Safe Drinking Water Act (21 U.S.C.
349; 42 U.S.C. 201 and 300f et seq.); (viii) the National
Environmental Policy Act of 1969 (42 U.S.C. 3421); (ix) the
Superfund Amendment and Reauthorization Act of 1986 (codified in
scattered sections of 10 U.S.C., 29 U.S.C., 33 U.S.C. and 42 U.S.C.);
(x) Title III of the Superfund Amendment and Reauthorization Act (40
U.S.C. 1101 et seq.) and (xi) the Environmental Conservation Law
of the State of New York (codified in section 171/2 of XxXxxxxx'x
1984).
HVAC: Heating, ventilation and air conditioning.
Improvement: Any fixed improvement in, to or upon the Premises
made by or for any tenant or occupant.
Initial Plans and Specifications: As defined in Exhibit D.
Insurance Requirements: As defined in Exhibit I.
Interest Factor: As defined in Section 20.2.
Interest Rate: As defined in Section 3.5.
Land: The real property upon which the Building is situated and which
is legally described in the Declaration.
Landlord: As defined in the introductory paragraph of this Lease and
in Section 12.2.
Landlord Parties: Landlord, any Senior Interest Holder, the Board of
Managers, and any partner, principal, director, officer, agent or
employee of any of the foregoing.
Landlord's Additional Work: As defined in Exhibit D.
Landlord's Broker: Xxxxxx X. Xxxxxx Company, Inc., 000 Xxxxxxxx,
00xx Xxxxx, Xxx Xxxx, Xxx Xxxx (PH) 000-000-0000 (Fax) 212-618-
7085.
Landlord's Delivery Date: The date on which the following shall have
occurred: (i) the Board of Managers and Landlord have executed and
delivered to Tenant the Nondisturbance Agreement contemplated by
Section 13.1 and (ii) provided Tenant has complied with Section 22.8,
Landlord has executed and delivered the documents required to be
delivered under this Lease with respect to the LMP Abatement
Benefits and Further Benefits, in each case, in accordance with the
terms of the Lease Escrow Agreement.
Landlord's Electrical Consultant: As defined in Section 6.1.2.1.
Landlord's First Expansion Rent Notice: As defined in Section
18.4.2.1.
Landlord's Percentage: As defined in Section 4.1.9.
Landlord's Renewal Rent Notice: As defined in Section 17.4.2.1.
Landlord's Second Expansion Rent Notice: As defined in Section
19.4.2.1.
Landlord's Share: As used in Section 4.1.2, Landlord's share of the
common charges for the maintenance, repair, replacement,
management, operation and use of the Common Elements as
determined in accordance with the provisions of the Declaration.
Landlord's Work: As defined in Exhibit D.
Law(s): The terms "law," "laws," "provisions of law," "requirements
of law," and words of similar import shall mean present and future
laws, statutes (including the Americans with Disabilities Act, 42 U.S.C.
12,101 et seq.), ordinances, codes (including building and fire codes),
rules (including the rules and requirements of the Occupational Safety
and Health Administration relating to indoor air quality codified at 29
CFR parts 1910, 1915, 1926 and 1928), regulations, requirements,
decrees, orders and directives of any or all of the federal, state, county
and city governments and all agencies, authorities, bureaus, courts,
departments, subdivisions, or offices thereof, and of any other
governmental, public or quasi-public authorities (including the board of
fire underwriters or other insurance body) having jurisdiction over the
Building, the Unit or the Premises, and the direction of any public
officer pursuant to law, whether now or hereafter in force. References
to specific statutes include (a) successor statutes of similar purpose and
import, and (b) all rules, regulations and orders made thereunder.
Lease Escrow Agreement: As defined in Section 16.14.
Lease Year: As defined in Section 4.1.6.
Leasing Activities: As defined in Section 18.12.
Letter of Credit: As defined in Section 16.18.
LIBOR Rate: The rate of interest per annum (rounded upward to the
nearest whole multiple of one-sixteenth of one percent (.0625%)),
which appears on the Telerate page 3750 (or if unavailable, such
similar or successor information service used in the financial markets to
determine such rate) as of 11:00 a.m. London time, two (2) Business
Days prior to the date upon which the LIBOR rate is to be determined
hereunder, for deposits of U.S. Dollars for a period of time equal to
thirty (30) days.
LMP Abatement Benefits: As defined in Section 22.2.
Lower Manhattan Plan: As defined in Section 22.1.
Material Default: Any default under Section 15.1.1, Section 15.1.2 (but
only with respect to Section 5.2, and Article XXIV), Section 15.1.4,
Section 15.1.5, Section 15.1.6, Section 15.1.7, Section 15.1.8, and
Section 15.1.9.
Mechanics Lien: As defined in Exhibit J.
Memo of Lease: As defined in Exhibit T.
Memorandum: As defined in Section 16.3.
Minimum Net Worth: As defined in Section 24.1.
Net Assignment Profits: As defined in Section 14.6
Net Effective Rent: As defined in Section 18.3.1.
Net Reletting Profits: As defined in Section 9.4.1.
Net Sublease Profits: As defined in Section 14.7.
Net Worth: As defined in Section 24.1.
Nondisturbance Agreement: As defined in Section 13.1.
Notice: As defined in Section 16.13.
Objection Notice: As defined in Section 4.4.
Offer: As defined in (a) Section 14.3.1 with respect to a sublease of a
portion of the Premises and (b) Section 14.3.2 with respect to a
sublease of all of the Premises or an assignment of this Lease.
Operating Expenses: As defined in Section 4.1.7.
Operating Statement: As defined in Section 4.3.3.
Permitted Use: As defined in Section 1.1.
Person: A natural person, firm, corporation, partnership, joint venture,
trust (including any beneficiary thereof), association, unincorporated
association or other form of business or legal entity, as the case may be.
Plans and Specifications: As defined in Paragraph 2.1 of Exhibit J.
Premises: As defined in Section 1.1.
Premises Area: As defined in Section 1.1.
Premises Core: With respect to (a) a full floor in the Unit occupied by
Tenant, the interior core of such floor which is not occupied by Tenant
and which includes the elevator shafts, mechanical rooms and electrical
closets on such floor but excludes the elevator lobby, bathrooms, sinks
and water fountains located on such floor and (b) a partial floor in the
Unit occupied by Tenant, the interior core of such floor which is not
occupied by Tenant and which includes the elevator shafts, mechanical
rooms, electrical closets, elevator lobby, public bathrooms, public
sinks, public water fountains and interior multiple tenant corridor on
such floor.
Prohibited Use: Any use or occupancy of the Premises that (a) violates
any certificate of occupancy in force for the Premises or the Unit or the
Building, other than any use or occupancy of the Premises for general
office uses and other uses incidental thereto; (b) causes or is likely to
cause damage to the Unit, the Building, the Premises or any equipment,
facilities or other systems therein; (c) impairs the character, reputation,
image or appearance of the Unit or the Building as a first-class office
building or commercial condominium (it being agreed that any use or
occupancy of the Premises that is ordinary and customary for tenants in
Comparable Buildings or consistent with the present conduct of
Tenant's business shall not be deemed to violate this clause (c)); (d)
interferes with the maintenance, operation and repair of the Unit or the
Building or their respective equipment, facilities or systems, including
without limitation, the Building Service Systems; (e) constitutes a
nuisance to other tenants or occupants of the Unit or the Building or
interferes with or disrupts the use or occupancy of any area of the Unit
or the Building (other than the Premises) by other tenants or
occupants; (f) disrupts the use, occupancy or quiet enjoyment of the
Unit or the Building by other tenants and occupants; (g) interferes with
the transmission or reception of microwave, television, radio or other
communication signals by antennae located on the roof of, or
elsewhere in, the Building or at that certain building having a street
address of 000 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx (xx being agreed
that any use or occupancy of the Premises that is ordinary and
customary for tenants in Comparable Buildings shall not be deemed to
violate this clause (g)); (h) subject to Article XIII in this Lease, violates
any provision of the Condominium Documents, any financing
documents from time to time encumbering the Unit or the Building, all
covenants, conditions and restrictions affecting the Unit or the Building
or any modifications, amendments, substitutions, replacements,
supplements or additions to any of the foregoing, provided that any
such modification, amendment, substitution, replacement, supplement
or addition does not impair or interfere with Tenant's rights or increase
Tenant's obligations hereunder, in a discriminatory manner (it being
agreed that any use or occupancy of the Premises that is ordinary and
customary for tenants in Comparable Buildings or consistent with the
present conduct of Tenant's business does not in and of itself violate
any term or provision of the Condominium Documents with respect to
use or occupancy of the Premises); or (i) with respect only to such use
or occupancy of the Premises that is not ordinary and customary for
tenants in Comparable Buildings, violates any requirement or condition
of any customary insurance policy maintained by Landlord or the
Board of Managers in connection with the Unit or the Building or of
the standard fire insurance policy issues for office building or
commercial condominiums in The City of New York or the rules and
regulations of the New York Board of Fire Underwriters or Insurance
Services Office (or similar bodies). In addition to the foregoing, a
Prohibited Use also includes the use of any part of the Premises for: (i)
a restaurant or bar (except for the use by Tenant's employees, guests
and invitees and which is not otherwise open to the public); (ii) the
preparation, consumption, storage, manufacture or sale of food,
beverages, liquor, tobacco or drugs (except for use by Tenant's
employees, guests, and invitees and not the general public); (iii) the
business of photocopying, multilith or offset printing (except in
connection with its own business); (iv) a typing or stenography
business; (v) a school or classroom open to the general public (but
excluding training classes and seminars for Tenant's employees,
invitees, and guests); (vi) cooking, lodging or sleeping; (vii)
[Intentionally Deleted]; (viii) medical or dental offices or laboratories;
(ix) a xxxxxx, beauty or manicure shop; (x) an employment agency,
executive search firm or similar enterprise; (xi) a consulate; (xii) the
manufacture, retail sale, storage of merchandise or auction of
merchandise, goods or property of any kind; or (xiii) any immoral or
illegal purposes.
Reletting Expenses: As defined in Section 9.4.1.
Renewal FMRV: As defined in Section 17.4.1.
Renewal Market: As defined in Section 17.4.1.
Renewal Market Term: As defined in Section 17.4.1.
Renewal Notice: As defined in Section 17.2.
Renewal Option: As defined in Section 17.1.
Renewal Term: As defined in Section 17.1.
Renewal Term Base Rent: As defined in Section 17.3.
Rentable Area: As to any particular space in the Building, the number
of rentable square feet of such space as expressly set forth in this Lease
or, if not expressly set forth in this Lease, as set forth in Exhibit M.
Rents: As defined in Section 3.3.
Rules and Regulations: As defined in Section 5.5.
Second Expansion FMRV: As defined in Section 19.4.1.
Second Expansion Market Term: As defined in Section 19.4.1.
Second Expansion Market: As defined in Section 19.4.1.
Second Expansion Notice: As defined in Section 19.1.2.
Second Expansion Option: As defined in Section 19.1.
Second Expansion Space: As defined in Section 19.1.1.
Second Expansion Space Availability Notice: As defined in Section
19.1.1.
Second Expansion Space Base Rent: As defined in Section 19.3.
Second Expansion Space Inclusion Date: As defined in Section 19.2.
Second Expansion Space Rentable Area: As defined in Section 19.2.3.
Second Expansion Space Scheduled Commencement Date: As defined
in Section 19.1.1.
Second Expansion Space Term: As defined in Section 19.2.
Second Option Cancellation Notice: As defined in Section 19.7.2.
Security Deposit: As defined in Section 1.1.
Senior Interest Holders: As defined in Section 13.1.
Senior Interests: As defined in Section 13.1.
Space: As defined in Exhibit M.
Storage Premises: As defined in Section 23.1.
Substantial Completion of Landlord's Work: As defined in Exhibit D.
Successor Landlord: As defined in Section 13.2.
Target Date: As defined in (a) Section 14.3.1 with respect to a
sublease of a portion of the Premises and (b) Section 14.3.2 with
respect to a sublease of all of the Premises or an assignment of this
Lease.
Tax Notice: As defined in Section 22.2.
Taxable Property: As defined in Section 4.1.5.
Tax Statement: As defined in Section 4.1.4.
Tax Year: As defined in Section 4.1.1.
Taxes: As defined in Section 4.1.2.
Tenant: As defined in the introductory paragraph of this Lease.
Tenant Delay: As defined in Exhibit D.
Tenant's Architect: As defined in Paragraph 2.1 of Exhibit J.
Tenant's Broker: Xxxxxx Xxxxxx Realty, Inc.
Tenant's Electrical Consultant: As defined in Section 6.1.2.
Tenant's First Expansion Rescission Notice: As defined in Section
18.4.2.3.
Tenant's First Expansion Response Notice: As defined in Section
18.4.2.2.
Tenant's Improvements: Improvements made to the Premises by
Tenant except for those Improvements paid for by Landlord through
the Allowance.
Tenant's Operating Payment: As defined in Section 4.3.
Tenant's Percentage Share: As defined in Section 22.1.
Tenant's Preliminary Work: As defined in Exhibit D.
Tenant's Property: As defined in Section 8.2.
Tenant's Renewal Rescission Notice: As defined in Section 17.4.2.3.
Tenant's Renewal Response Notice: As defined in Section 17.4.2.2.
Tenant's Second Expansion Response Notice: As defined in Section
19.4.2.2.
Tenant's Share: As defined in Section 1.1.
Tenant's Tax Payment: As defined in Section 4.2.
Tenant's Work: As defined in Exhibit D.
Tenant Waiver Party: As defined in Exhibit N.
Term: As defined in Section 1.1.
Termination Agreement: As defined in Section 16.3.
Unit: That certain leasehold condominium unit designated as
Commercial Unit C in the Declaration presently consisting of the C-3
level and Floors 12 through 16 and 19 in the Building.
Unit Area: 205,028 rentable square feet, which is the total Rentable
Area of the Unit.
Unit Expenses: As defined in the Declaration.
Unused Work Allowance: As defined in Exhibit D.
Unused Work Allowance Adjustment Period: As defined in Exhibit D.
Work Letter: As defined in Section 2.4 and attached hereto as Exhibit
D.
EXHIBIT C
Basic Capacity
15th Floor
Closet "A" 100 amp switch feeds a 277 volt lighting panel.
100 amp switch feeds two 120 volt power panels.
Closet "B" 100 amp switch feeds a 277 volt lighting panel.
100 amp switch feeds two 120 volt power panels.
Closet "C" 600 amp distribution panel which is fed from a 200
amp switch feeds two power panels (distribution panel feeds the 15th,
16th, 17th, 18th floors & spare).
Closet "D" 600 amp distribution panel which is fed from a 200
amp switch feeds two power panels (distribution panel feeds the 15th,
16th, 17th & 18th floors).
16th Floor
Closet "A" 100 amp switch feeds a 277 volt lighting panel.
100 amp switch feeds two 120 volt power panels.
Closet "B" 100 amp switch feeds a 277 volt lighting panel.
100 amp switch feeds two 120 volt power panels.
Closet "C" 600 amp distribution panel which is fed from a 200
amp switch feeds two power panels (distribution panel feeds the 15th,
16th, 17th, 18th floors & spare).
Closet "D" 600 amp distribution panel which is fed from a 200
amp switch feeds two power panels (distribution panel feeds the 15th,
16th, 17th & 18th floors).
In addition to the panels listed above, there is a 600 amp 277/480 volt
distribution on the 15th floor.
EXHIBIT D
Work Letter
1. General. The purpose of this Work Letter is to set forth how
Landlord's Work (as defined in Paragraph 2 of this Work Letter) and
Tenant's Work (as defined in Paragraph 3 of this Work Letter) in the
Premises are to be constructed, who will undertake the construction of
such work, who will pay for the construction of such work, and the
time schedule for completion of such work. All capitalized terms used
and not otherwise defined in this Work Letter shall have the meanings
ascribed to them in the Lease.
2. Base Building; Landlord's Work. (a) Landlord shall at its sole
cost and expense and without deduction from the Allowance (a) deliver
the Premises to Tenant together with the systems, facilities, materials
and completed work described in Schedule D-1 attached hereto (the
"Base Building"), and (b) perform the additional work to the Premises
("Landlord's Additional Work") as described in Schedule D-2 attached
hereto (Landlord's Additional Work and the work required to deliver
the Base Building are sometimes collectively referred to in this Work
Letter or the Lease as "Landlord's Work").
(b) Tenant acknowledges that, except with respect to the items
described in Schedule D-4 attached hereto and the matters described in
Paragraph 9.1(b) below (which matters are also listed on Schedule D-
4), Substantial Completion of Landlord's Work (as defined in
Paragraph 9 of this Work Letter) has occurred.
(c) Subject to the last sentence of this subparagraph, Landlord
covenants and agrees that (i) it will use all reasonable efforts to
complete the items listed on Schedule D-4 on or prior to June 1, 1997
and (ii) with respect to the items listed on Schedule D-4 and marked
with an asterisk, Landlord will complete such items as soon as
practicable after the execution and delivery of this Lease but in no
event later than June 1, 1997. Notwithstanding anything in this
Paragraph 2(c) to the contrary, Tenant acknowledges that certain items
listed in Schedule D-4 shall not be completed on or prior to June 1,
1997 if under good construction scheduling practice such work should
be done after still incomplete Tenant's Preliminary Work has been
completed; provided that Tenant shall have agreed to the
postponement of the completion of such items.
3. Preparation and Submission of Plans and Specifications. After
the Execution Date, Tenant shall cause its Architect to submit to
Landlord Plans and Specifications (together with any revisions thereto
which are made in accordance with Exhibit J, being, collectively,
referred to as the "Initial Plans and Specifications") for the construction
of Tenant's improvements and alterations to the Premises ("Tenant's
Work"). The procedure for submission, and the standards, time and
procedure for approval, of the Initial Plans and Specifications is set
forth in Paragraph 2 of Exhibit J to the Lease. In addition to the basic
requirements for Plans and Specifications set forth in the Lease, the
Initial Plans and Specifications shall comply with the additional
requirements set forth on Schedule D-3 attached hereto. Tenant has
advised Landlord that it intends (i) to install a staircase between the
fifteenth (15th) and sixteenth (16th) floors of the Premises and, upon
exercise of the First Expansion Option or the Second Expansion
Option, between the fourteenth (14th) and fifteenth (15th) floors and
(ii) to install a vault on the fifteenth (15th) or sixteenth (16th) floor, and
Landlord agrees that it will not unreasonably withhold its consent to
the plans for such alterations; provided that such alterations comply
with Article VIII and Tenant has made adequate provision in its plans
to protect the structure and integrity of the Building (it being agreed
that upon Tenant's surrender of the Premises, Tenant will be under no
obligation to restore the cement slab to its original condition or to
remove the stairway).
4. Selection of Contractor. Unless such contractor or
subcontractor has been previously approved by Landlord in accordance
with Paragraph 1.1 of Exhibit J, Tenant shall submit to Landlord the
name of Tenant's contractor and subcontractors for Landlord's
approval in accordance with Paragraph 1 of Exhibit J.
5. Governmental Approvals and Permits. Subject to Paragraph 3
of Exhibit J, (i) upon Landlord's approval of the Initial Plans and
Specifications, Tenant shall file the same with the appropriate
governmental authority or authorities and shall take whatever other
action shall be necessary to obtain and maintain in effect throughout the
performance of Tenant's Work all governmental permits and
authorizations that may be required in connection with Tenant's Work
and (ii) upon the completion of Tenant's Work, Tenant shall obtain all
certificates and approvals required to be issued by any public authority
or any governmental authorities having jurisdiction over Tenant's Work
which are required by Law in order for Tenant to lawfully occupy the
Premises.
6. Landlord's Contribution; Excess Costs; Procedure for Payment;
Procedure for Unused Allowance.
6.1. Landlord's Contribution. Landlord shall pay for the Cost of the
Work (as defined below) first out of the Allowance, and Tenant shall
pay for the Cost of the Work in excess of the Allowance. Except as set
forth in Paragraph 6.3, Tenant shall not be entitled to any credit,
abatement or payment if the Allowance exceeds the Cost of the Work.
For purposes of this Lease, "Cost of the Work" means (a) any and all
costs to design and construct Tenant's Work (including, without
limitation, the reasonable out-of-pocket costs of preparing any Plans
and Specifications), (b) Tenant's moving expenses, (c) Tenant's legal
expenses in negotiating the Lease, and (d) any and all costs to design
and construct Tenant's trading floor which shall include trading desks
and electrical wiring thereof (but shall exclude therefrom Quotron,
telephones and any other items of Tenant's personal property);
provided that, in no event shall the Allowance be disbursed to pay the
"soft costs" (i.e., the design costs, moving expenses, and legal
expenses) of the Cost of the Work which exceed fifteen percent (15%)
of the Allowance. The Cost of the Work shall not include any
Landlord's Work. Nothing herein shall limit Tenant's right to have any
Unused Work Allowance credited to Rent pursuant to Paragraph 6.3
below.
6.2. Procedure for Payment. At any time after the Commencement
Date, the Allowance shall be paid by Landlord following Landlord's
receipt of invoices for the Cost of the Work delivered by Tenant to
Landlord together with a letter (a "Direction of Payment Letter") in
substantially the form of Exhibit O attached hereto authorizing and
directing Landlord to pay such invoices out of the then remaining
Allowance, in which case Landlord shall pay such invoices out of the
then remaining Allowance within 30 days of Landlord's receipt of such
Direction of Payment Letter and shall debit the Allowance therefor;
provided, however, that (a) Tenant shall not submit a Direction of
Payment Letter more than once per calendar month, (b) in the event
Tenant is then in Material Default under the Lease after the expiration
of applicable cure periods, Landlord shall not be obligated to pay any
amounts of the Allowance to Tenant or as otherwise directed by
Tenant but such amounts shall be credited against any damages
Landlord receives on account of such default; and (c) Tenant covenants
and agrees to retain as a holdback a reasonable and customary amount
after taking into account the nature of the work involved.
Upon substantial completion of Tenant's Work, Landlord shall
promptly, upon Tenant's request therefor, pay Tenant out of the then
remaining Allowance for all unpaid invoices previously submitted to
Landlord for payment.
6.3. Procedure for Unused Allowance. (a) Provided that no
Material Default has occurred and is continuing and provided that
Tenant has not defaulted under its obligations under Paragraph 13
below (beyond the expiration of any applicable grace, cure and notice
periods), Tenant shall be entitled to a credit against any Rent due under
this Lease on the Base Rent Commencement Date (and thereafter, until
such time as the Adjusted Unused Work Allowance is reduced to
zero), in an amount equal to the then Adjusted Unused Work
Allowance.
(b) As used herein, the following terms shall have the following
meanings:
(i) "Adjusted Unused Work Allowance" shall mean, as of any date, an
amount equal to the then remaining amount of Unused Work
Allowance after deducting therefrom any credits actually made against
Rent in accordance with this Paragraph 6.3.
(ii) "Unused Work Allowance" shall mean an amount equal to (x) the
Allowance minus any payments made to Tenant (or at Tenant's
direction to another person pursuant to this Paragraph) under
Paragraphs 6.1 and 6.2 relating to the Cost of the Work multiplied by
(y) one hundred seven and one-half percent (107.50%) per annum
compounded annually for the Unused Work Allowance Adjustment
Period.
(iii) "Unused Work Allowance Adjustment Period" shall mean the
period of time which commences on (1) the earlier to occur of (x) the
date Tenant occupies the Premises and commences the conduct of its
business at the Premises and (y) the date on which Tenant substantially
completes Tenant's Work and (2) which ends on the date following the
Base Rent Commencement Date when the Unused Work Allowance
has been fully disbursed.
7. General Conditions.
7.1. Performance of Work. Tenant shall cause Tenant's Work to be
performed in a good and workmanlike manner and, except as provided
otherwise in Paragraph 7.2, in accordance with the Initial Plans and
Specifications approved by Landlord.
7.2. Changes. Any material changes to Tenant's Work or to the
Initial Plans and Specifications necessitated by field conditions or
otherwise (each, a "Change Request") must be approved by Landlord
pursuant to the provisions of Paragraph 3 of this Work Letter.
7.3. Insurance. Throughout the construction of Tenant's Work,
Tenant shall maintain or cause to be maintained the insurance required
for Alterations pursuant to Exhibit J to the Lease.
8. Early Access to Premises; Tenant's Preliminary Work. If
Tenant wishes to perform any work in the Premises, including, without
limitation, Tenant's Work or the installation of information,
communication, computer, telephone or security systems, built-ins,
millwork or special decorative effects, prior to the Substantial
Completion of Landlord's Work, then Tenant shall so specify in such
detail on the Initial Plans and Specifications as may be necessary, in the
reasonable judgment of Landlord, in order to schedule such work
("Tenant's Preliminary Work") in the construction schedule, and shall
simultaneously furnish to Landlord the names of the contractors and
subcontractors Tenant proposes to use for Tenant's Preliminary Work.
Landlord shall be deemed to have consented to the performance of
Tenant's Preliminary Work by the contractors and subcontractors
designated by Tenant unless, within 7 Business Days after Landlord's
receipt of the Initial Plans and Specifications and the names of the
contractors and subcontractors for Tenant's Preliminary Work,
Landlord notifies Tenant (a) that it does not consent thereto (which
consent shall not be unreasonably withheld and which notice shall state
the reasons that Landlord does not so consent), or (b) that it consents
thereto upon such reasonable conditions as Landlord may set forth in
such notice, including, without limitation, the condition that Tenant's
Preliminary Work be performed at such times as Landlord may
reasonably designate in the construction schedule or, in the event that
Landlord shall at any time reasonably determine that Tenant's
Preliminary Work cannot be performed as set forth in the construction
schedule, then at such times as Landlord may reasonably designate with
not less than 2 Business Days' prior notice so as to minimize any
interference with the performance of Landlord's Work.
8.1. Performance of Tenant's Preliminary Work. Tenant's
Preliminary Work shall be deemed to be an Alteration to the extent that
Tenant's Initial Plans and Specifications do not provide for such
Preliminary Work, and the requirements of Exhibit J of the Lease shall
apply thereto except to the extent that the Plans and Specifications for
Tenant's Preliminary Work are already set forth in the Initial Plans and
Specifications. Notwithstanding anything to the contrary contained in
this Work Letter or in the Lease, in no event shall Landlord be
obligated to perform any portion of Tenant's Preliminary Work or
Tenant's Work.
8.2. Conditions to Access. In connection with Tenant gaining
access to the Premises prior to Substantial Completion of Landlord's
Work as provided in this Paragraph 8, Tenant agrees (a) to observe
and perform all of its obligations to Landlord under the Lease (except
for its obligations to pay Base Rent and its obligations to pay
Additional Rent for electricity used prior to the Substantial Completion
of Tenant's Work), including, without limitation, its indemnity
obligations under the Lease, (b) to cease promptly upon request by
Landlord any activity undertaken by or on behalf of Tenant which, in
Landlord's reasonable judgment, would interfere with or delay the
performance of Landlord's Work; provided, however, that Tenant shall
be permitted to continue the performance of Tenant's Preliminary
Work so long as the cause of such interference or delay shall be
eliminated, (c) to obtain the consent of Landlord prior to entering the
Premises during the performance of Tenant's Preliminary Work and,
after obtaining such consent, to comply with all reasonable rules and
regulations of Landlord and Landlord's contractor, including, without
limitation, the Building Standards and the Rules and Regulations, (d)
that such access shall be at the sole risk of Tenant and shall be deemed
to be a license, and (e) that prior to exercising such right, Tenant shall
deliver to Landlord the certificates of insurance required by Exhibit J of
the Lease. If Tenant fails to comply with any of the foregoing
obligations, then, in addition to all other rights and remedies under the
Lease, Landlord may by notice require Tenant to cease the
performance of Tenant's Preliminary Work until Substantial
Completion of Landlord's Work has occurred, and upon receipt of such
notice, Tenant shall so cease the performance of Tenant's Preliminary
Work.
9. Delivery of Premises to Tenant; Substantial Completion of
Landlord's Work. Landlord shall deliver possession of the Premises to
Tenant when Substantial Completion of Landlord's Work has occurred,
subject to the provisions of Section 9.1.
9.1. "Substantial Completion of Landlord's Work" shall be deemed
to have occurred as soon as Landlord's Work has been substantially
completed except for (a) minor or insubstantial details of construction,
mechanical adjustment or decoration that remain to be performed (i.e.,
so-called "punch list" items), or (b) portions of Landlord's Additional
Work that have not been completed because under good construction
scheduling practice such work should be done after still incomplete
Tenant's Preliminary Work has been completed; provided, however,
that in the event of a Tenant Delay, Substantial Completion of
Landlord's Work shall be the date on which Substantial Completion of
Landlord's Work would have occurred but for such Tenant Delay. In
determining when Substantial Completion of Landlord's Work would
have occurred but for a Tenant Delay, it shall be assumed that
Substantial Completion of Landlord's Work is delayed one day for each
day Substantial Completion of Landlord's Work is delayed, due to such
Tenant Delay. Notice of the occurrence of the Substantial Completion
of Landlord's Work shall be delivered by Landlord to Tenant, shall
specify in reasonably sufficient detail the basis for Landlord's
determination of such date and shall be binding upon Tenant unless
Tenant objects thereto within 10 Business Days of Tenant's receipt of
such notice and specifies in reasonable detail the nature of Tenant's
objection. From the Commencement Date through and including the
Substantial Completion of Landlord's Work, Tenant and its agents shall
have reasonable access at reasonable times upon prior notice to
Landlord (which notice may be made telephonically) to the Premises in
order to inspect the performance of Landlord's Work.
9.2. As used in this Work Letter, "Tenant Delay" means any actual
delay in the performance of Landlord's Additional Work by reason of:
(a) any action or omission of Tenant, its agents, employees, invitees,
licensees, contractors or subcontractors; (b) any direction by Tenant
that Landlord suspend or slow down the progress of Landlord's
Additional Work or any part thereof; or (c) any displacement resulting
from any of the foregoing of any portion of Landlord's Additional
Work from its place in the construction schedule and the rescheduling
of such Landlord's Additional Work (due regard being given to the
need to minimize disturbance to other tenants and occupants of the
Building); provided that with regard to clauses (a), (b) and (c) above,
Landlord will give Tenant notice of such actions that give rise to a
Tenant Delay and, with respect to (a) only, give Tenant a reasonable
time to cure. Notwithstanding anything herein to the contrary, Tenant
Delay shall not include any delays due to the extension of Landlord's
review period in accordance with the proviso of Paragraph 2.2 of
Exhibit J. Landlord acknowledges that no Tenant Delay has occurred
with respect to any of Landlord's Work completed to date (it being
understood and agreed that Landlord is not making any representation
with respect to Tenant Delay for the items listed in Schedule D-4).
10. Punch List Items. Following Substantial Completion of
Landlord's Work, Tenant shall make a final inspection of Landlord's
Work together with Landlord and Landlord's contractor, and such
parties shall jointly prepare a final "punch list". Landlord shall
thereafter cause its contractor to perform the work necessary to
complete such "punch list" as promptly as practicable.
11. Landlord's Expenses. Tenant shall pay to Landlord, as
Additional Rent within 10 days after demand therefor (together with
invoices if appropriate), any reasonable costs and expenses (which
expenses shall be included in Landlord's Work) incurred by Landlord or
the Board of Managers in connection with (a) any overtime or
premium pay specifically requested by Tenant, and (b) any other costs
or expenses expressly identified as costs or expenses payable by Tenant
in this Work Letter or the Lease.
12. Contractor's Warranties and Guaranties. Landlord hereby
assigns to Tenant all warranties and guaranties by Landlord's
contractor relating to Landlord's Additional Work and Landlord's
Work, and Tenant hereby waives all claims against Landlord relating
to, or arising out of the construction of, Landlord's Additional Work.
SCHEDULE D-1
Base Building Description
At no cost to Tenant, Landlord either has, or shall, with respect to
Owner's Installations, (or, with respect to Common Elements, use all
reasonable efforts to cause the Board of Managers to), supply, provide,
install or furnish all Building Service Systems, in connection with
Landlord's delivery of the Premises, which shall include, without
limitation, the following items, but in any case only to the extent such
Building Service Systems are required to be delivered, supplied,
provided, installed or furnished under the Condominium Documents
(collectively, the "Base Building"):
(a) Core Toilets
(i) Landlord shall install core toilets in the Premises in accordance
with, but only to the extent specified in, Schedule D-2.
(b) Asbestos and Hazardous Materials
(i) Landlord shall remove completely all ACM (as hereinafter
defined) in the Premises in accordance with, but only to the extent
specified in, Schedule D-2.
(c) Structural (with respect to the fifteenth (15th) floor only)
(i) Landlord shall fill in all existing slab penetrations with materials
consistent with existing construction or as required by applicable Laws.
(ii) Landlord shall repair and patch all slabs on Tenant's floors to a
smooth, level surface in a manner consistent with acceptable industry
practice in Comparable Buildings.
(iii) Landlord shall frame all columns with sheet-rock
(d) Elevators
As specified in the Declaration.
(e) Fireproofing and Insulation
(i) After any ACM removal, Landlord shall furnish and
install new fireproofing, in compliance with all applicable building code
requirements, on all decks, beams, columns and other structural work
from which ACM was removed.
(ii) After any ACM removal, Landlord shall furnish and install new
insulation, as required by good construction practice, on all pipes and
equipment from which ACM has been removed, and remove and
replace any damaged non-asbestos containing insulation, in abated
areas.
(iii) After any ACM removal, reinstallation or re-fireproofing,
Landlord shall restore any structure (such as column enclosures) to the
previous level of finish or a comparably priced finish requested by
Tenant.
(iv) Landlord shall replace all missing or damaged fireproofing or
insulation upon completion of all demolition.
(f) Demolition
(i) In connection with the demolition specified in Schedule D-2,
Landlord shall design, prepare drawings, file, obtain permits, demolish,
remove, patch damaged conditions, and obtain approvals for a
complete demolition of such areas.
(g) Sprinklers
(i) Landlord shall furnish standpipe risers, pumps connected to an
emergency power system, core loops, controls, alarms, valves, and
connections to the fire alarm system, necessary to permit Tenant to
install a complete sprinkler system in all areas of the Premises (other
than the Storage Space), in compliance with applicable Law.
(h) Plumbing
(i) "As Is," except to the extent set forth in Schedule D-2.
(i) HVAC
(i) "As Is," except to the extent set forth in Schedule D-2.
(j) Electric
(i) "As Is," except to the extent specified in Schedule D-2.
Landlord shall maintain existing service equipment and switchboards to
a standard consistent with Comparable Buildings.
(k) Life Safety
(i) Landlord will provide Tenant with sufficient connecting points
to provide for the Tenant's connection of life safety systems.
SCHEDULE D-2
Landlord's Additional Work
Landlord shall, at its sole cost and expense, perform the following
work to the Premises and discharge all of Landlord's obligations to
comply with Law pursuant to Section 5.3 as Landlord's Additional
Work on or prior to the Landlord's Delivery Date, unless another date
is expressly provided for herein for such performance:
A. WITH RESPECT TO THE FIFTEENTH (15TH) FLOOR
ONLY:
1. DEMOLITION. Demolish all areas of the fifteenth (15th)
floor (other than the raised trading floor, the 21 A/C Supplemental
Units (totaling 171 tons A/C), and sprinkler loops presently located on
the fifteenth floor of the Building, which, at Tenant's request, shall be
salvaged and delivered to Tenant in its "as is" condition, subject to
wear and tear; it being understood that Landlord shall not be
responsible for the utility or operation of any salvaged item, but
Landlord shall, to the extent reasonably practicable without incurring
substantial expense, use all reasonable efforts to protect such salvaged
items for Tenant) to be leased by Tenant and deliver such space raw
and in broom-clean condition. Remove any Improvements,
partitioning and ceiling in excess of the Base Building on the fifteenth
(15th) floor. In connection with such demolition, Landlord shall
perform the following on the fifteenth (15th) floor only:
a. HVAC. The HVAC trunk duct will be stubbed to the ceiling.
The perimeter HVAC Units shall be cleaned by Landlord.
b. Floors. All floor covering and floor outlets will be removed.
All floors will be flash patched and leveled. All holes in the slab or core
drills will also be patched and fire stopped.
c. Plumbing. All plumbing lines (not to be re-used) to be cut back
to mains and removed and the mains capped.
d. Electrical. Landlord shall remove all electrical lines beyond the
panel box.
e. Telephone. All telephone lines to be removed beyond the
telephone closet.
f. Underfloor Cell System. The existing underfloor cell system
shall be clean, dry and useable with all existing wiring removed and all
trough tops leveled.
2. ASBESTOS. Landlord shall deliver the fifteenth (15th) floor
free of all asbestos containing materials ("ACM") and, if ACM is
discovered at any time during the Term to have existed in such space as
of the Commencement Date, Landlord shall, at its sole cost and
expense, remove, enclose or encapsulate any such additional ACM to
the extent required by Law and to the extent consistent with then
current remediation techniques and industry standards for Comparable
Buildings and, if any ACM is enclosed or encapsulated, Landlord shall,
at its sole cost and expense, monitor such ACM to ensure that the level
of airborne asbestos fibers is no greater than that permitted under Law.
Landlord shall also deliver to Tenant an ACP-5 Certificate.
Notwithstanding anything in Paragraph 26 of Exhibit E to the contrary,
Landlord shall pay for the actual costs and expenses incurred by Tenant
by virtue of said Paragraph 26, but only to the extent that such cost and
expense relates to Landlord's Work or ACM (other than ACM due to a
default by Tenant under this Lease).
3. BATHROOMS. Landlord shall provide, at its sole cost and
expense, at least one public bathroom on the fifteenth (15th) floor that
complies with ADA Requirements, and that Landlord shall restore the
existing bathroom to first-class condition consistent with Comparable
Buildings.
4. Bullet-Proof Glass. To the extent that the bullet-proof glass
that was formerly in the Premises prior to the completion of the above-
described demolition is still readily accessible, Tenant shall be entitled,
at no additional cost, to the use of such glass; it being understood and
agreed that Landlord is making no representation or warranty with
respect to the existence, or the efficacy, of such bullet-proof glass.
B. SIXTEENTH (16TH) FLOOR WORK
Tenant agrees that (a) Tenant is leasing the sixteenth (16th) floor of the
Premises in its "AS IS" condition, subject to Section 5.3 above, and (b)
Landlord shall have no obligation to perform any work or to supply
any materials whatsoever to prepare the sixteenth (16th) floor of the
Premises for Tenant's occupancy (including, without limitation, the
making of any improvements or repairs to such Premises or any other
portion of the Unit), except for the following:
1. BATHROOMS. To the extent the ADA Requirements require
a separate bathroom accommodation for the handicapped on the
sixteenth (16th) floor in addition to the bathroom provided on the
fifteenth (15th) floor, Landlord shall provide, at its sole cost and
expense, at least one public bathroom on the sixteenth (16th) floor that
complies with ADA Requirements, and Landlord shall restore such
bathroom in first-class condition consistent with Comparable Buildings.
2. ASBESTOS. If ACM is discovered at any time during the
Term to have existed in such space as of the Commencement Date,
Landlord shall, at its sole cost and expense, remove, enclose or
encapsulate any such additional ACM to the extent required by Law
and to the extent consistent with then current remediation techniques
and industry standards for Comparable Buildings and, if any ACM is
enclosed or encapsulated, Landlord shall, at its sole cost and expense,
monitor such ACM to ensure that the level of airborne asbestos fibers
is no greater than that permitted under Law. Landlord shall also
deliver to Tenant an ACP-5 Certificate. Notwithstanding anything in
Paragraph 26 of Exhibit E to the contrary, Landlord shall pay for the
actual costs and expenses incurred by Tenant by virtue of said
Paragraph 26, but only to the extent that such cost and expense relates
to Landlord's Work or ACM (other than ACM due to a default by
Tenant under this Lease).
[COMMENT2] SCHEDULE D-3
Additional Requirements for
Initial Plans and Specifications
In addition to complying with the requirements for Plans and
Specifications generally (as set forth in Exhibit J), the Initial Plans and
Specifications for Tenant's Work shall comply with the following
additional requirements:
1. Architectural drawings must include the following:
a. Partition locations and types (including any slab-to-slab
partitions or special acoustical treatment required)
b. Door locations, door schedule, door frames and the swing of
each door
c. Reflected ceiling plan
d. Millwork items (if any)
e. Hardware schedule
f. Finish schedule showing all finish types and locations
g. Telephone rooms (if any) in addition to Base Building
telephone closets.
2. Structural drawings must include the following:
a. Location of any floor openings and stair drawings
b. Location and extent of any floor loading beyond building
standard
c. Any structural changes caused by Tenant's design (including
raised flooring).
3. Electrical drawings must include the following:
a. Location and extent of any special electric requirements caused
by equipment such as computer hardware, copiers or supplemental A/C
units (i.e., separate circuiting, coaxial cabling etc.)
b. Estimate of total electrical load on each floor
c. Location of all electrical outlets, switches, telephone outlets,
exit signs, and lighting fixtures
d. Location of all electronic calculating and cathode-ray tube
(CRT) systems and special audio-visual equipment.
4. Heating, ventilating and air conditioning (HVAC) drawings
must include the following:
a. Location of any ductwork, ceiling diffusers, and thermostats
b. Variable air volume (VAV) unit quantities and sizing
information
c. Location and sizing of any supplemental HVAC equipment
d. Estimate of total HVAC load on each floor.
5. Plumbing drawings must include the following (if applicable):
a. Location of kitchen, kitchenettes, etc.
b. Location of drinking fountains
c. Location of sinks and toilets (other than Base Building).
6. Sprinkler drawings.
7. Tenant security systems must include:
a. A preliminary outline equipment brochure and riser indicating
all components (electrical power characteristics, voltages and specific
locations on plan)
b. All requirements for dedicated circuits, if any
c. All requirements for bonding and grounding, if any
d. All requirements for outside connections to the telephone
company or a central protective alarm agency (such as ADT or
Xxxxxx), if any
e. All emergency circuiting requirements, if any
f. The type, sizes, quantities and location of all required cable and
conduit.
8. Notwithstanding anything in Paragraph 2.1 of Exhibit J to the
contrary, Tenant shall submit a total of 1 paper sepia and 6 paper sets
of the Initial Plans and Specifications to the Building Manager, together
with one copy on disk formatted to DXF Standard CAT format.
SCHEDULE D-4
PUNCH LIST ITEMS
1. Landlord shall install venetian blinds to the windows consistent
with the blinds presently existing in the Premises.
2. The items listed in the attached letter.
EXHIBIT E
BUILDING STANDARDS FOR ALTERATIONS
AND
BUILDING RULES & REGULATIONS
000 XXXXX XXXXXX
XXX XXXX, XXX XXXX
REQUIREMENTS FOR MAJOR ALTERATIONS
IT IS AGREED AND UNDERSTOOD THAT IT SHALL BE THE
OCCUPANT'S SOLE RESPONSIBILITY TO SEE THAT ALL
EMPLOYEES AND INDEPENDENT CONTRACTORS OF THE
OCCUPANT INCLUDING BUT NOT LIMITED TO THE
OCCUPANT'S ARCHITECT, GENERAL CONTRACTOR AND
SUBCONTRACTOR SHALL COMPLY WITH ALL RULES,
REGULATIONS AND REQUESTS AS STATED HEREIN.
OCCUPANT WILL MAKE NO ALTERATIONS, DECORATIONS,
INSTALLATIONS, REPAIRS, ADDITIONS, IMPROVEMENTS
OR REPLACEMENT IN, TO OR ABOUT THE PREMISES
WITHOUT BUILDING MANAGEMENT'S PRIOR REVIEW AND
APPROVAL (10 BUSINESS DAY TURNAROUND) ONLY BY
CONTRACTORS OR MECHANICS APPROVED BY BUILDING
MANAGEMENT. ANY COSTS OR EXPENSE RESULTING
FROM OCCUPANT OR OCCUPANT'S EMPLOYEES OR
INDEPENDENT CONTRACTOR'S FAILURE TO COMPLY
WITH ANY OF THE FOLLOWING RULES, REGULATIONS
AND REQUESTS SHALL BE BORNE BY THE OCCUPANT.
1. Submit to Building Management scaled architectural and
engineering drawings including, but not limited to, demolition,
construction, HVAC, mechanical, plumbing and structural, reflected
ceiling, electric, telephone, finish and furniture plan. Submit one (1) set
of sepias and four (4) sets of prints. Prior to start of project a review of
the site and final approval must come from Building Management.
This submission of drawings will be concurrent with the Filing of
drawings with New York City Buildings Department.
2. In the event of major alterations to the original approved Occupant
drawings, Occupant is to submit plans for review to Building
Management as indicated in item one.
3. Name, address, telephone number and representative or
architect/designer and engineering firm responsible for Occupant
alteration must be submitted to Building Management.
4. A list of general contractors and sub-contractors being considered
for the construction project must be submitted to the Building
Management in writing. It shall be the occupant's sole responsibility to
submit to the above listed contractors a copy of the rules and
regulations as outlined, prior to bidding for the job.
5. After Building Management's review of contractors, submit name,
address, telephone number and representative of contractor selected to
perform the work.
6. Any licensed architect or engineer can file, however, it is preferred
that the Occupant use the approved building filing agent -- Xxxxxxx
Fizzo and Associates.
7. Building Management will require a copy of Insurance for all
contractors, covering the following.
a. Workmen's Compensations
b. Public Liability insurance in the amount of $3,000,000.00
c. Bodily injury in the amount of $1,000,000.00 per person,
$3,000,000,00 per occurrence.
d. Property damage in the amount of $3,000,000.00
e. The insurance policy shall include a hold harmless clause for
the owner's benefit (see Exhibit "A")
Special Clause
Thirty days prior notice of Certificate of Insurance cancellation, non-
renewal or material change to 125 Broad Condominium and managing
agent by certified mail.
a. The failure of any contractor of subcontractor to keep the
required insurance policies in force during the performance of the work
covered by these Rules and Regulations, any extension thereof of any
extra or additional work contracted to be performed by such contractor
or subcontractor, shall be a breach of this agreement, and in such event,
Building Management shall have the right, in addition to any other
rights, to immediately halt work being performed on the premises
without further cost to the Condominium and Managing Agent.
b. The coverage and amounts set forth herein shall not be deemed
to limit contractor's or any subcontractor's liability in tort or with
respect to any work contracted for or performed during the term of this
agreement.
c. The contractor's contact shall contain the Indemnity Agreement
set forth below and compliance with the foregoing requirements as to
insurance shall not be deemed to relieve contractor of liability
thereunder.
8. Submit Building permit Applications for Building Management's
signature.
9. A copy of the Building Department permit is to be submitted to
Building Management prior to commencement of work. Permit is to
be posted on the job site in conspicuous location prior to
commencement of construction. Occupant shall be responsible for
keeping current all permits.
10. All work and materials shall comply with all governmental codes
and New York City Building Department regulations.
11. Contractor's construction supervisor must contact the property
manager prior to commencement of construction to arrange a
preliminary meeting.
12. During any new alteration, Occupant shall be responsible to
comply with all provisions of all current local and state laws, ADA and
all appurtenances necessary to comply with same.
13. Compliance with Local Law 16/84 in which Occupant is required
to install a source of emergency lighting which includes, but is not
limited to, exit signs, corridors, hallways and access facilities. The
fixture(s) must be compatible with the building's system.
All alterations requiring partition changes shall comply with
compartmentation space requirements for the portion of the Building
being altered, in accordance with Section C26-504.1 of the City of
New York Administrative Code, as amended from time to time. All
partitions that create division, separation or segregation between either
occupancy, demised and public areas and/or compartmented spaces
shall be of 2 hour fire rated construction inclusive or properly rated and
labeled doors.
14. The New York State Lighting Standards shall be complied with.
In order to maintain this requirement, we recommend that during a
major renovation, the installation of an energy conservation light
fixture(s) and its inner components (ballasts, bulbs, etc.) Specifications
of same are to be submitted along with architectural plans. During a
small renovation, fixtures may be reused.
15. All cabling shall comply with Bulletin 126-1976 and Article 5 of
the City of New York Electrical code.
16. Occupant or Occupant's general contractor (with Occupants
written approval) is to contact the property manager 24 hours in
advance for the scheduling and coordination of freight elevators for
deliveries, rubbish removal and rules unique to the building.
Requesting the elevator must be put in writing. Freight elevators
charges will be sundryed to the tenant. All rubbish removal shall be
before 8:00 am and after 6:00 pm. Elevators can be reserved before
8:00 am and after 6:00 pm. No material or equipment shall be carried
under or on top of any elevator. Construction material is expressly
prohibited from the passenger elevators. An owner's general
contractor can not monopolize the freight elevator. It is Building
Managements responsibility to coordinate scheduling of the elevators.
17. Repair and/or replace all materials adjacent to work affected areas
outside the occupant's space to the satisfaction of Building
Management.
18. Upon completion of the work, Occupant is to submit one complete
set of the Building Department approved plans, the HVAC balancing
report, and the Building Department sign-off to the Building
Management office.
19. All connections to the buildings electric service must be done by
the building's approved electrical contractors. A certificate of filing
prior to installations will be required with final sign-off or approval
when applicable.
20. Occupant shall reimburse Building Management for all fees
incurred for outside professional review of plans and specifications.
(i.e. - Structural Engineer, Mechanical Engineer)
21. No equipment is to be suspended from reinforcing rods.
22. Equipment shall be suspended with power house clips or steel
beams depending on load.
23. All floor loading and steel work shall be subject to review by an
approved Building structural engineer. All approvals shall be obtained
by the Occupant at Occupant's expense. Occupant shall also be
responsible for the costs of all controlled inspections.
24. Welding to building steel is permitted with the following
conditions. Proposed weld areas must be approved by the Building
Engineer. All welding shall be performed by licensed welders meeting
requirements of the Building Code and work under the supervision of a
licensed inspection agency. Inspection agency to submit progress
reports, difficulties, acceptance or rejection of the work, and file a
certificate with the Building Department authorities attesting to the
proper execution of the work.
25. If, as a result of the work, any changes are required to be made to
the Class E communication system (e.g., speaker relocation, addition,
type/style, etc.) as presently filed, approved and installed, and a
subsequent inspection by the New York Fire Department and/or
Building Department indicates their disapproval thereof, Occupant shall
correct same at Occupant's sole cost and expense.
26. Any alteration affecting, directly or indirectly, any areas that
contain hazardous material, e.g. asbestos, shall be performed at
Occupants sole cost and expense, in compliance with the rules,
regulations, procedures and guidelines, as amended or adopted from
time to time, of New York City Local Law 76/85 and amended by
Local Law 80/86, of the Environmental Protection Agency (EPA),
Occupational Safety and Health Act (OSHA), National Institute for
Occupational Safety (NIOSHA) and the New York City Board of
Education, with respect to standards for work causing, effecting or
involving hazardous material; repair, containment, removal, disposal
and/or cleaning operations. A consultant/Certified Hazardous Waste
Inspector, will survey and approve the proposed abatement plan and
also monitor the air quality testing and method of removal and submit
to building management. The cost for this service will be at Occupant's
expense. Occupant will relocate any personnel from the area where
this type of alteration is being performed. Occupant agrees to cause
such rules, regulations, procedures and guidelines to be complied with.
Occupant shall absolve and hold harmless 125 Broad Condominium
and Managing Agent and any other party owning an interest in the
property in which the work is being performed, their employees and
agents, from any and all liability with respect to any failure to comply
with any and all rules, regulations, procedures and/or guidelines, as
amended or adopted from time to time.
27. Occupant shall obtain from Occupant's general contractor and all
sub-contractors an agreement in form and substance satisfactory to
Building Management protecting and indemnifying 125 Broad
Condominium against any claims, damages, liabilities, costs or
expenses including attorney fees in connection with any work or any
portion of work affecting the premises demised to any other Occupant
or services to be rendered to any other Occupant.
28. Any mechanic's lien, filed against the demised premises of the
building for the work claimed to have been done for or materials
claimed to have been furnished to Occupant shall be discharged by
Occupant at its expense within ten (10) days after such filing, by
payment or filing of the bond required by law or otherwise. Proof of
such discharge shall be forwarded to the Building Office immediately
thereafter.
29. All work, if performed by a contractor's subcontractor, shall be
subject to reasonable supervision and inspection by Building
Management. If an outside consultant is required to review, such
supervision and inspection shall be at Occupant's sole expense.
30. All costs and expenses incurred with respect to this agreement,
either directly or indirectly, including amounts so incurred by Managing
Agent, shall be borne by Occupant and all payments thereof shall be
made by Occupant promptly as and when they become due, and
evidence of such payments shall be furnished to Building Management
upon request. All such costs and expenses incurred by Building
Management (Managing Agent), and all amounts payable to Managing
Agent pursuant to this agreement and will be sundryed to the occupant.
125 Broad Condominium & the Managing Agent shall have no
responsibility for or in connection with the work and Occupant shall, at
Occupant's sole cost and expense, remedy and be responsible for any
and all defects in such work that may appear at any time, whether the
same shall affect the premises in particular or any part of the Building in
general.
Occupant hereby indemnifies and agrees to defend and hold 125 Broad
Condominium and Managing Agent, their employees and agents
harmless from and against any and all suits, claims, actions, losses,
costs, damages or expenses (including claims for workmen's
compensation) based on personal injury or property damage caused in
the performance of this work by Occupant, Occupant's employees,
agents, servants or contractors engaged by Occupant; and at the
Condominium's or Managing Agent's election, Occupant shall repair,
replace or reimburse the Managing Agent for the cost and expense of
repairing or replacing, any portion of the Building, item or equipment
of Condominium's real or personal property so damaged, lost or
destroyed to or destruction of machinery, tools, equipment and
property of similar nature belonging to the Occupant, contractor, and
subcontractors including personal property of the Occupant, its
employees, and employees of the contractor and sub-contractors.
Nothing herein contained shall be deemed to (a) constitute any one
individual as the Condominium's agent or (b) waive any of the
Condominium's right pursuant to the terms of provisions of any specific
agreement.
Nothing herein contained shall be deemed to supersede and/or
contradict any article, provision and/or amendment to the officially
executed agreement in effect upon inception of these alterations.
SUMMARY OF THE WORK
Final Cleaning
All induction units shall be thoroughly cleaned. If a contractor is
working on a multi-tenanted floor, all toilet facilities must be kept in a
clean and neat condition subject to Building Management's approval.
General Notes
Standards shown apply, except where any applicable governing codes
or regulations are more restrictive, in which case such codes and
regulations shall govern. It shall be the Occupants full responsibility to
make all arrangements and pay the building charges for hoisting,
material moving, use of elevators and any labor in connection with the
foregoing and any shutdown, and all allowable building working hours
plus overtime hours.
Demolition
Building Management must be notified in writing prior to the start of
any demolition project. At which time Building Management or their
contractors shall have access to the space for inspection purposes.
Demolition work must be performed by an approved 000 Xxxxx Xxxxxx
Contractor.
Precautions
Provide, erect and maintain lights, barriers, weather protection and all
other items as required for the proper protection of the workmen
engaged in demolition operation, public and adjacent construction.
Provide and maintain weather protection at exterior openings so as to
fully protect the interior premises against all damages from the
elements. Provide and maintain temporary protection of the existing
structure designated to remain where demolition and removal work is
being done, connections made, materials handled, or equipment
removed.
Occupant is responsible for any damage to the existing structure or
contents by reason of the insufficiency of protection provided.
All base building items specifically designated for re-use but damaged
in the course of work performed under the general contract, or
otherwise unusable shall be replaced by items of equal quality and
appearance at no expense to the owner. The scheduling of all work
and the removals of all debris shall be in full compliance with the
building rules and regulations, including protection of floors and walls.
Demolition may be done at all times provided that if Building
Management receives complaints from other Occupants in the building
and advises Occupant thereof, Occupant will perform all such
demolition thereafter either before or after office hours.
Contractor shall use all means necessary to control dust if such dust is
caused by operations during performance of work. Contractors shall
thoroughly moisten all surfaces as required to prevent dust being a
nuisance to other Occupants, public areas and also provide dust proof
barriers between work and other areas. All public areas effected must
be kept clean each day.
GENERAL CONSTRUCTION
1. Partitions between Occupants on multiple tenancy floors and
between Occupants and public corridors shall be constructed of 2 1/2"
metal studs 16" on center with two (2) layer fire rated sheet rock, both
sides from slab to underside of slab above with full thickness fiberglass
aluminum backed insulation in accordance with applicable building
codes. Gypsum wall board to be taped and spackled a minimum of
three (3) coats.
2. Building standard partitions within Occupant's Demised Premises
shall consist of at a minimum of 2 1/2" steel studs 24" on center to arch
with one (1) layer of 5/8" fire rated sheet rock on each side. All wall
butting mullions shall have a proper channel to receive the Gypsum
wall board.
3. If Occupant's partition layout interferes with existing fan coil units,
the relocation of these units will be at Occupant's sole cost and expense
including the material and labor overtime for the necessary drain down
and refilling of system.
4. Entrance doors to be a 1 1/2 hour fireproof self-closing type with
welded frame. All wood doors shall have a fire label. All hollow metal
doors shall be properly fire rated if they are located in rated partitions
with visible label.
5. All woodwork shall be fireproofed and a New York City affidavit of
certification must be furnished.
6. All locks shall be keyed and mastered to building setup. Keys must
be supplied to the building manager. All hardware shall be ADA
compliant. (Lever type)
7. Any contractor engaged by Occupant to perform the work shall
make available fire extinguishers based on the following:
Alterations up to 3,000 sq. ft. - one fire extinguisher
Alterations over 3,000 sq. ft. - one fire extinguisher for every additional
3,000 sq. ft.
Said fire extinguishers shall be 25 lb. type approved for type A, B, C
fires and shall be kept and maintained on the premises by Occupant's
contractor for the duration of the work and be placed and identified in
a conspicuous manner so as to be readily available if required.
8. All common areas shall meet Departments of Buildings'
requirements or requirements of other agencies having Jurisdiction.
ELECTRICAL SPECIFICATIONS
1. All base building electrical work and tie-ins to be performed solely
by the building's approved electrical contractors.
2. All wiring shall meet requirements of the Department of Water
Supply, Gas and Electric and of Underwriter's Laboratory. All
electrical devices are to meet New York City code.
3. All wiring to meet New York City code.
4. Sealite to be used for final connection to motors. Prewired flexible
conduit to be used for recessed fixtures.
5. All wire to be minimum 12 gauge copper THWN
6. All fixtures that are removed and reinstalled shall be cleaned and re-
lamped and ballast changed to energy efficient types as approved by
Con Edison (Except when matching to existing)
7. Building Management requests that any fixtures being removed and
not reinstalled be turned over to Building Management.
8. All coring, chopping, chasing of concrete and work which results in
noise shall be accomplished before 8 A.M. or after 5:30 P.M. during
normal working days.
9. All open floor outlets shall be capped with appropriate blanking
plate.
10. Conduits larger than 2" shall be rigid aluminum.
11. All branch circuit and feeder wiring shall be tagged at each box or
panel. Tags shall indicate circuit number and phase. All panels cover
troughs, switch covers and trim to be restored to its proper place.
Panel directory shall be updated to reflect changes.
12. All existing or new wiring for switching, fixtures, devices, ceiling
and related elements, outlets on approved shop drawings located with
the demised area, shall not carry over control to or controlled by any
devices or adjacent space.
13. Home runs shall be indicated on plans. Rigid conduit, BX or thin
wall tubing shall be used throughout. 1/4" minimum size.
14. Light fixtures shall be Con Edison energy efficient.
15. All conduit shall be supported by standoffs, not wired to ceiling
supports.
16. All electrical boxes shall meet code requirements.
17. If excessive electrical power is required, it is to be taken from the
main distribution board and not from existing Building panels.
18. plans with requirements shall be submitted to Building
Management to determine riser capacity.
19. Building Mechanic or Engineer shall supervise all riser shutdowns.
SPECIFICATIONS FOR AIR CONDITIONING
1. Occupant shall be responsible for alternations to existing air
conditioning duct work or systems and for insuring that such work is
properly integrated into existing Building systems with no adverse
effects on the Building system. Building Management shall not be
responsible for the proper HVAC design or balancing within the area
of any Occupant Alteration. The system shall be balanced at the
completion of the job.
2. All air conditioning components should be passed by Building
Management for review.
3. Additional outside louvers are not permitted, unless the need
therefore is firmly established. The location of such louvers shall be
subject to Owner's Representatives/Building Management's approval.
Detailed sketches of all louvers shall be submitted for Building
Management's approval.
4. All shut off valves shall be accessible at all times, and tagged.
5. All unused equipment, such as air handling units and air
conditioning units shall be removed.
6. Exhaust fan system must discharge to the atmosphere based on
usage, not in ceiling or existing Building return air systems.
7. All condensate lines must be insulated with an approved material.
8. Supplementary A/C units to be installed with the proper isolators so
as not to disturb the quiet enjoyment of adjoining premises.
9. It is to be understood that periodic maintenance of auxiliary A/C
units is the occupant's responsibility and expense. All filing and
inspection requirements are occupant's responsibility.
10. All supplementary units connected to the building supplemental
plant shall be metered by approved meters at the individual owner's
cost. Location is at the review of Building Management and the
occupant will be billed monthly for usage as per their agreement with
125 Condominium. All installation is at occupant's cost.
11. Occupant shall furnish design balancing figures to Building office.
PLUMBING RULES AND REGULATIONS FOR ALTERATIONS
1. All water supply to a floor shall originate on the same floor from
nearest wet column with proper access for maintenance. Pipes
supplying such fixtures shall be insulated.
2. All piping, fitting, valves, etc. shall be properly insulated to prevent
pipe condensation and/or heat loss.
3. Xxxxxx tube must be used to all supply service connections.
4. All waste lines shall be properly pitched and piped to insure total
drainage as not to create nor form traps (except as may be required,
e.g. made by means of long turn or 45 degree "Y" fittings) and shall
maintain existing clean-out connections and shall further provide clean-
out connections at fittings.
5. All piping shall conform to the Plumbing Code, Dept. of Buildings,
City of New York.
6. All core drilling, chopping chasing of concrete and work which
results in noise shall be accomplished before 8 A.M. or after 5:30 P.M.
during normal working days.
7. All piping runs in the Occupant areas to be accessible.
8. No water risers shall be shut down during Building, office hours. A
Building mechanic shall supervise all riser shutdowns.
9. No plastic pipe will be permitted.
10. Sweat joint must be made with a silver based alloy solder.
11. All unused fixtures and piping shall be capped at its respective
riser.
12. All run outs from risers shall be brass pipe.
VENETIAN BLINDS AND CURTAINS
1. No curtain rods are to be installed in venetian blind pockets.
2. Curtain rods shall not be supported by any part of the acoustical tile.
Rods shall be supported by headers attached to the ceiling's mechanical
supports of black iron.
3. If curtains are to be installed by any Occupant, such curtains shall be
flame proof and shall not interfere with the proper functioning of the
peripheral HVAC system. A Certificate of Flammability must be sent
to the Building Office.
CEILINGS
1. All ceilings shall meet all requirements of New York City
Department of Buildings.
2. All ceilings are to be supported independently and not from duct
work. Ceiling installation shall be approved by building management
for accessibility.
SPECIFICATIONS FOR TELEPHONE INSTALLATION AND
LOW VOLTAGE WIRING
1. All wall wiring is to comply with New York City code.
2. No more than 6' of cable or wire can be run exposed along any wall.
No exposed wiring to run along the floor. All such wiring must be
properly covered.
3. When applicable no excess wire or panels may be left inside the
peripheral induction unit and enclosed.
4. Ceiling tiles and light fixtures are to be replaced by qualified
personnel. If the building personnel are required to reinstall fixtures
and tiles, charges to the occupant will result.
5. Prior to any new installations, all old or obsolete wiring must be
removed. All new exposed cabling that is run in the ceiling must be
individually hung and supported and not be dependent upon support of
building hung ceiling.
6. Open communication cables may be run in spaces used as return air
plenum provided they are jacketed conductors with Teflon insulation,
silicon rubber insulated with glass tape, or other conductors approved
for this type of application. All other types of cable must be installed in
a raceway, pipe, thin wall or conduit. All piping and conduit must
comply with New York City Electrical Code. In ceilings which do not
convey environmental air, open communication wiring of any type may
be installed.
Contingencies:
This consent shall be no force and effect unless and until it is signed by
you and returned to Building Management within ten (10) days of the
date of this letter, acknowledging your consent to the foregoing.
Very truly yours,
The Xxxxxxxxx Company
as agent for 000 Xxxxx Condominium
000 Xxxxx Xxxxxx
Xxxxxxxx Xxxxxxxxxx
By:
ACCEPTED AND AGREED:
Occupant:
By:
Date:
EXHIBIT A
THE XXXXXXXXX COMPANY
INDEMNITY CLAUSE
FOR CERTIFICATE OF INSURANCE
To the fullest extent permitted by law, the Contractor hereby agrees to
indemnify and hold harmless 125 Broad Condominium, The Xxxxxxxxx
Company, Xxxxxx X. Xxxxxx Company Inc. and any of their
respective agents, employees, partners, officers, directors and principals
(disclosed or undisclosed) (collectively, the "Indemnities") from and
against all claims, losses damages, costs, expenses and other liabilities
(including, without limitation, attorney's fees and disbursements and
liability, if any, for the payment of worker's compensation or disability
benefits) arising out of or resulting from the performance of the
services called for under this contract Requirements and Specifications,
to the extent that any such claim, loss, damage cost, expense or other
liability is attributable (i) to personal injury, sickness, disease or death,
or (ii) to injury to or destruction of property, including, but not limited
to the loss of use resulting therefrom, and is caused, in whole or in part,
by the acts or omissions of the Contractor or its subcontractors or their
respective agents or employees including, without limitation, the
Contractor's or its subcontractors' failure to comply with all laws,
ordinances, rules, regulations and requirements or any governmental
authorities having jurisdiction over the services hereunder, including
those governing the removal and disposal of toxic or hazardous waste.
The Contractor shall defend any action brought against the indemnities
which is based on any claim, loss, damage, cost, expense or liability
referred to herein. Such obligations shall not be construed to negate,
abridge, or otherwise reduce any other right or obligation of indemnity
which would otherwise exist for the benefit of any indemnitee.
If any and all claims against the indemnities by any of the Contractor's
employees, anyone directly or indirectly employed by the Contractor or
anyone for whose acts the Contractor may be liable, the
indemnification obligation hereunder shall not be limited in any way or
any limitation on the amount of type of damages, compensation or
other benefits payable by or for the Contractor under worker's or
xxxxxxx'x compensations acts, disability acts or other employee
benefit acts.
FILING FOR CERTIFICATE OF INSURANCE
000 XXXXX XXXXXX
XXX XXXX, XX 00000
CONTRACTORS (VENDORS) WORKING DIRECTLY FOR The
Xxxxxxxxx Company at 000 Xxxxx Xxxxxx. The certificate should have a
minimum of $3,000,000.00 liability coverage and should be made to
read as follows:
Insured -
Vendor's full name and address.
Certificate Holder -
The Xxxxxxxxx Company
AAF 125 Broad Condominium
000 Xxxxx Xxxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxxxx XxXxxx
Listed as additional insured -
125 Broad Condominium, The Xxxxxxxxx Company and Xxxxxx X.
Xxxxxx Co., Inc., are included as additional insured with respects to
000 Xxxxx Xxxxxx, Xxx Xxxx, XX 00000.
CONTRACTORS CONTRACTED BY A TENANT
Insured -
Contractor's full name and address.
Certificate Holder -
Tenant's full name, address and floor.
000 Xxxxx Xxxxxx, Xxx Xxxx, XX 00000.
Listed as additional insured -
125 Broad Condominium, The Xxxxxxxxx Company and Xxxxxx X.
Xxxxxx Co., Inc., are included as additional insured with respects to
000 Xxxxx Xxxxxx, Xxx Xxxx, XX 00000.
TENANTS INSURANCE REQUIRED BY LEASE
Insured -
Tenant's Full name, address and floor.
Certificate Holder -
The Xxxxxxxxx Company
AAF 125 Broad Condominium
000 Xxxxx Xxxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxxxx XxXxxx
Additional insured -
125 Broad Condominium, The Xxxxxxxxx Company and Xxxxxx X.
Xxxxxx Co., Inc., are included as additional insured with respect to
000 Xxxxx Xxxxxx, Xxx Xxxx, XX 00000.
OCCUPANT RULES AND REGULATIONS
1. The rights of Occupants in the entrances, corridors, elevators and
escalators of the Building are limited to ingress to and egress from the
Occupant's premises for the Occupant's and their employees, licensees
and invitees, and no Occupant shall use, or permit the use of, the
entrances, corridors, escalators or elevators for any other purpose. All
deliveries and shipments of goods and packages shall be through the
freight elevators, and not the passenger elevators. No Occupant shall
invite to the Occupant's premises, or permit the visit of, persons in such
numbers or under such conditions as to interfere with the use and
enjoyment of any of the plazas, entrances, corridors, escalators,
elevators and other facilities of the Building by other Occupants
without notice to the Building Management office. Fire exits and
stairways are for emergency use only, and they shall not be used for
any other purposes by the Occupants, their employees, licensees or
invitees. No Occupant shall encumber or obstruct, or permit the
encumbrance or obstruction of any of the lobbies, sidewalks, plazas,
entrances, corridors, escalators, elevators, fire exits, stairways or other
public portions of the Building. The Owner's representatives and
Building Management reserve the right to control and operate the
public portions of the Building and the public facilities, as well as
facilities, furnished for the common use of the occupants, in such
manner as it reasonably deems best for the benefit of the occupants
generally.
2. Building Management may refuse admission to the Building outside
of ordinary business hours to any person not known to the watchman
in charge or not having a pass issued by occupant or not properly
identified, and may require all persons admitted to or leaving the
Building outside of ordinary business hours to register. Occupant's
employees, agents and visitors shall be permitted to enter and leave the
Building whenever appropriate arrangements have been previously
made between the owners representative and the occupant with respect
thereto. Each occupant shall be responsible for all persons for whom
he requests such permission and shall be liable to 125 Broad
Condominium for all acts of such persons. Any person whose presence
in the Building at any time shall, in the reasonable judgment of Building
Management, be prejudicial to the safety of the Building or its
occupants may be denied access to the Building or may be ejected
therefrom. In case of invasion, riot, or civil disorder Building
Management may prevent all access to the Building during the
continuance of the same, by closing the doors or otherwise, for the
safety of the occupants and protection of property in the Building.
Building Management may require any person leaving the Building
with any bulky package or other bulky object to exhibit a pass from the
occupant from whose premises the package or object is being removed,
but the establishment and enforcement of such requirement shall not
impose any responsibility on Building Management for the protection
of any occupant against the removal of property from the premises of
the occupant. 125 Broad Condominium shall, in no way, be liable to
any occupant for damages or loss arising from the admission, exclusion
or ejection of any person to or from the occupant's premises or the
Building under the provisions of this rule.
3. No occupant shall obtain or accept for use in its premises ice, towel,
barbering, boot blacking, door polishing, lighting maintenance, cleaning
or other similar services from any persons not authorized by Building
Management in writing to furnish such services, provided that there are
a reasonable number of sources available to occupant (consistent with
proper Building operation and security), and the charges for such
services by persons authorized by Building Management are not
excessive. Such services shall be furnished only at such hours, in such
places within the occupant's premises and under such regulations as
may be fixed by Building Management.
4. No awnings or other projections over or around the windows which
shall be visible from the exterior (with the blinds down) shall be
installed by any occupant.
5. There shall not be used in any space, or in the public halls of the
Building, either by the Occupant or by jobbers or others, in the delivery
or receipt of merchandise, any hand trucks, except those equipped with
rubber tires and side guards.
6. Entrance doors on multiple occupancy floors shall not be left open
at any time. All blinds and or drapes therein above the ground floor
shall be lowered and kept drawn when and as reasonably required
because of the position of the sun, during the operation of the Building
air-conditioning system to cool or ventilate the Occupant's premises.
Occupant's failure to comply with the requirements of the previous
sentence may result in an inadequacy of performance of the Building
air-conditioning and ventilating system.
7. No noise, including the playing of any musical instruments, radio or
television, which, in the judgment of Building Management, might
disturb other Occupants in the Building shall be made or permitted by
any Occupant. Nothing shall be done or permitted in any Occupant's
premises, and nothing shall be brought into or kept in any Occupant's
premises, which would impair or interfere with any of the Building
services or the proper and economic heating, cleaning or other
servicing of the Building or the premises, or the use or enjoyment by
any other occupant of any other premises, nor shall there be installed by
any Occupant any ventilating, air conditioning, electrical or other
equipment of any kind which, in the judgment of Building
Management, might cause any such impairment or interference. No
dangerous, inflammable, combustible or explosive object or material
shall be brought into the Building by any occupant or with the
permission of any occupant except for usual office.
8. Occupant shall not permit any cooking within the Demised Premises
unless filed with the New York City Buildings Department and
approved by Building Management and shall not permit any food odors
emanating within the Demised Premises to seep into other portions of
the Building.
9. No acids, vapors or other materials shall be discharged or permitted
to be discharged into the waste lines, vents or flues of the Building
which may damage them. The water and wash closets and other
plumbing fixtures in or serving any Occupant's premises shall not be
used for any purpose other than the purpose for which they were
designed or constructed, and no sweepings, rubbish, rags, acids or
other foreign substances shall be deposited therein. All damages
resulting from any misuse of the fixtures shall be borne by the
Occupant who, or whose servants, employees, agents, visitors or
licensees, shall have caused the same.
10. Except as expressly authorized in accordance with the Occupant's
Agreement, no signs, advertisement, notice or other lettering shall be
exhibited, inscribed, painted or affixed by Occupant, which is visible
from outside of the Demised Premise without the prior written consent
of Building Management which shall not be unreasonably withheld. In
the event of the violation of the foregoing by tenant, Building
Management may remove the same without any liability, and may
charge the expense incurred by such removal to the Occupant or
Occupants violating this rule. Signs or lettering in public areas of the
Building, shall be of a size, color and style acceptable to Owner's
representatives and Building Management. Building Management shall
have the right to prohibit any advertising by any Occupant which refers
to or identifies the Building and which impairs the reputation of the
Building or its desirability as a building for offices, and upon written
notice from Building Management, Occupant shall refrain from or
discontinue such advertising. If a floor is leased out to more than one
tenant, the signage placed in the corridor is to be approved by Building
Management.
11. No additional locks or bolts of any kind shall be placed upon any
of the doors or windows in any occupant's premises and no lock on any
door therein shall be changed or altered in any respect, unless all are
master-keyed and occupant shall furnish key to Building Management.
Upon the termination of an Occupant's Agreement, all keys of the
Occupant's premises and toilet rooms shall be delivered to Building
Management.
12. No Occupant shall use or occupy, or permit any portion of the
premises demised to such Occupant to be used or occupied, as an
office for a public stenographer or typist, or as a xxxxxx or manicure
shop or as an employment bureau (except to employ personnel for
Occupant) or for any mail order business. No Occupant or occupancy
shall engage or pay any employees in the Building, except those
actually working for such Occupant or Occupant in the building, nor
advertise for laborers giving an address at the Building. No premises
shall be used, or permitted to be used, at any time, as a store for the
sale or display of goods, wares or merchandise of any kind (except as
otherwise permitted in your agreement), or as a shop, booth, bootblack
or other stand, or for the conduct of any business or occupation which
predominantly involves direct patronage of the general public in the
premises demised to such Occupant, or for manufacturing or for other
similar purposes.
13. The requirements of Occupant will be attended to only upon
application at the office of the Building. Employees of the building
shall not perform any work or do anything outside of the regular duties,
unless under special instructions from the Building Office.
14. Each Occupant shall, at its expense, provide artificial light in the
premises demised to such Occupant for persons performing Janitorial
or other cleaning services and making repairs or alterations in said
premises, during the performance thereof.
15. The Occupant's employees shall not gather in the hallways,
stairways, elevators, front, roof or any other part of the Building used
in common by the occupants thereof
16. If the premises demised to any occupant become infested with
vermin, such Occupant, at its sole cost and expense, shall cause its
premises to be exterminated, from time to time, and shall employ such
exterminators therefor as shall be cleared by Building Management.
17. Occupant shall not place a load upon any floor of the Demised
Premises which exceeds the load per square foot which such floor was
designed to carry and which is allowed by law.
18. Business machines and mechanical equipment belonging to
Occupant which cause noise, vibration or any other nuisance that may
be transmitted to the structure or other portions of the Building outside
of the Demised Premises, to such a degree as to be objectionable to
Building Management or which interfere with the use or enjoyment by
other occupants of their premises or the public portions of the Building,
shall be placed and maintained by Occupant at Occupant's cost and
expense, in settings of cork, rubber or spring type vibration to the
reasonable satisfaction of Building Management.
19. Building Management has agreed to maintain a Building Directory
for Occupants of the Building in accordance with Section 16.16 of the
Lease. The Building Management will, at the request of Occupant,
maintain listings on the Building Directory of the name of Occupant
and of any other person, firm, association or corporation lawfully in
possession of the premises or any part thereof. The number of listings
for Occupant shall be no less than 138 and such additional listings as do
not exceed the same proportion of the directory capacity as Occupant's
Pro Rata Share. The listing of any name other than that of Occupant,
whether on the doors of the premises, on the Building Directory, or
otherwise, shall not operate to vest any right or interest in this
agreement or in the premises or be deemed to be the written consent of
Building Management, it being expressly understood that any such
listing is a privilege extended by 125 Broad Condominium.
20. Occupant shall not move any safe, heavy equipment or bulky
matter in or out of the Building without coordinating with building
Management. If the movement of such items require special handling,
Occupant agrees to employ only persons holding a Master Rigger's
License to do said work and all such work shall be done in full
compliance with the Administrative Code of the City of New York and
other municipal requirements. All such movements shall be made
during hours which will least interfere with the normal operations of
the Building, and all damage caused by such movement shall be
promptly repaired by Occupant at Occupant's expense. All moving,
shipping and receiving of Occupant's products, samples and supplies
shall be through the freight or service elevator(s) and shall be subject to
the Occupant's Agreement.
21. No Occupant shall suffer or permit the Demised Premises or any
part thereof to be used in any manner or anything to be brought into or
kept therein, which would in any way (i) violate any Laws or
Ordinances, (ii) cause structural injury to the Building or any part
thereof, (iii) constitute a public or private nuisance, (iv) impair the
appearance, character or reputation of the Building, (v) discharge
objectionable fumes, vapors or odors into the Building heating,
ventilating and air conditioning system or into Building flues or vents
not designed to receive them or otherwise in such manner as may
offend other occupants, or (vi) violate any of tenant's other obligations
under its agreement.
22. If Occupant's use of the freight elevator is after regular hours, or in
such a manner that reasonably requires the supervision of Building
Management's employees, Occupant shall pay to 125 Broad
Condominium, the Building Standard cost of furnishing, such after
hours service and/or supervision.
As used herein, the following terms shall have the following meanings:
"Occupant" - References the individual owners and tenants in the same.
"Agreement" - in regards to an owner this reflects the condominium
agreement. In regards to the tenant this reflects the lease.
EXHIBIT F
Landlord's Building
Rules and Regulations
1. The sidewalks, areas, entrances, vestibules, passages, corridors,
halls, elevators and stairways shall not be encumbered nor obstructed
by any of the tenants, their agents, clerks, servants or visitors, or be
used by them for any other purpose than for ingress and egress to and
from their respective premises. Landlord reserves the right to restrict
and regulate the use of aforementioned public areas of the Unit by the
tenants, their employees, guests, contractors and customers and by
persons making deliveries to tenants, including but not limited to the
right to allocate certain elevators for delivery service, and the right to
designate which Building entrances shall be used by persons making
deliveries in the Building.
2. The doors, skylights, and windows that reflect or admit light
into passageways or into any place in the Building shall not be covered
or obstructed by any tenant.
3. The water-closets, wash-closets, urinals and other water
apparatus shall not be used for any purposes other than those for which
they were constructed and no sweepings, rubbish, rags, ashes,
chemicals, refuse from electric batteries, or other substances shall be
thrown therein. No tenant shall lay linoleum or other similar floor
covering so that the same shall come in direct contact with the floor
covering of the Premises, and if linoleum or other similar floor covering
is desired to be used, an interlining of builder's deadening felt shall be
first affixed to the floor by a paste, or other material, which may easily
be removed with water, the use of cement or other similar adhesive
material being expressly prohibited.
4. No tenant shall xxxx, paint, drill into, drive nails into, or in any
way damage, mutilate or deface any walls, ceilings, partitions, floors,
wood, stone or iron work of the Unit or the Building, except in
connection with Alterations.
5. No sign, advertisement or notice shall be inscribed, painted,
affixed or displayed on any of the windows or doors or on any other
part of the outside or the inside of the Building, without the prior
consent in writing of Landlord; provided that, with respect to signs,
advertisements or notices inscribed, painted, affixed or displayed on the
doors or on any other part of the inside of the Building, Landlord shall
not withhold its consent if such signs or notices are inscribed, painted,
affixed or displayed in a first-class manner consistent with Comparable
Buildings.
6. No tenant shall do anything or permit anything to be done, in
its Premises, or bring or keep anything therein or in the Building, that
will in any way obstruct or interfere with the rights of other tenants, or
in any way injure or annoy them, or those having business with them.
Tenants, their agents, clerks, servants or visitors, shall not make or
cause any improper noises in the Building, or interfere in any way with
other tenants, or those having business with them.
7. No freight, furniture, or bulky matter of any description will be
received into the Building, or carried up or down, except during hours
(which will include reasonable times during Business Hours) and in the
manner designated by Landlord, which may involve overtime work for
Landlord's employees, agents or contractors or for the employees,
agents or contractors of the Board of Managers. The moving of safes
shall occur at such times as Landlord shall designate upon previous
notice to Landlord or Landlord's agent; and the persons employed to
move the safes in and out of the Premises must be acceptable to
Landlord. No tenant shall use the passenger elevators for the hauling
and removal of materials or debris and the same shall be done only after
Business Hours and only via the freight elevator.
8. Tenants shall not install any locks or bolts on any doors nor
make any changes in existing locks unless Tenant promptly provides
Landlord with a key or combination thereto. All keys shall be keyed to
the building master. Each tenant must, upon the termination of the
tenancy, restore to Landlord all the keys (or other similar access
devices) of offices, rooms and toilet-rooms which shall have been
furnished to Tenant or that Tenant shall have had made, and in the
event of loss of any keys so furnished shall pay Landlord therefor.
9. Tenant shall not use the Premises for the manufacturing or
storage of merchandise or for lodging.
10. Nothing shall be swept or thrown by the tenants or by their
agents, clerks, servants or visitors into the corridors, halls, stairways,
elevators, or light shafts, or upon the skylights of the Building, or into
or upon any heating or ventilating registers, or plumbing apparatus in
the Building, or upon adjoining buildings or upon the street. No
awnings or other projections shall be attached to the outside walls of
the Building without the prior written consent of Landlord.
11. No animals or birds shall be kept in or about the Premises.
12. Tenants shall not bring into the Building or keep to use in the
Building any gasoline, kerosene, camphene, burning fluid, other
inflammable, combustible or explosive fluid, chemical or substance, or
any Substance designated as hazardous under any applicable law.
13. No tenant shall cause or permit any unusual or objectionable
odors arising to a nuisance to emanate from the Premises. No tenant
shall permit the delivery of any food or beverage to the Premises,
except by persons reasonably approved by Landlord and only under
reasonable regulations fixed by Landlord. No food or beverages shall
be carried in the public halls and elevators of the Building except in
closed containers or as otherwise be customary in Comparable
Buildings.
14. Tenants shall not obtain any towel supply service or ice service
except from Persons approved by Landlord, nor obtain drinking water
for delivery on the Premises from any source not approved by
Landlord. Canvassing, peddling and soliciting are prohibited in the
Building and Tenant shall cooperate to prevent the same.
15. Telegraph, telephone and other wires and instruments shall not
be introduced by Tenant without previous notice to Landlord and with
its reasonable approval.
16. Landlord reserves the right to exclude from the Building
between the hours of 6:00 o'clock p.m. and 8:00 o'clock a.m. on
weekdays, on Saturdays, Sundays and legal holidays, all Persons who
do not present a pass to the Building signed by Landlord or Landlord's
agent. Landlord or its agent will furnish passes to Persons for whom
any tenant requests same in writing. Each tenant shall be responsible
for all Persons for whom he requests such pass and shall be liable to
Landlord for all acts of such Persons. Landlord may require all such
Persons to sign a register on entering and leaving the Building.
17. Landlord shall use all reasonable efforts (or, if the enforcement
of such Rules and Regulations is the responsibility of the Board of
Managers, Landlord shall use all reasonable efforts to cause the Board
of Managers) to enforce the Rules and Regulations against occupants
of the Unit in a uniform and non-discriminatory manner.
18. Landlord may from time to time adopt additional systems and
procedures to improve the security or safety of the Unit, any persons
occupying, using or entering the same, or any equipment, finishings or
contents thereof, and Tenant shall comply with Landlord's reasonable
requirements relative thereto.
19. Tenant shall conduct all aspects of its operations so as to
preserve labor harmony and to insure that the security and operations
of the Building shall not be disrupted.
20. Landlord reserves the right to rescind, alter, waive or add, as to
one or more or all tenants, any rule or regulation at any time prescribed
for the Building or the Unit when, in the judgment of Landlord,
Landlord deems it necessary or desirable for the reputation, safety,
character, security, care, appearance or interests of the Building, the
Unit or the Premises, the preservation of good order therein, the
operation or maintenance of the Building or the Unit, the equipment
thereof, or the comfort of Tenants or others in the Building or the Unit
so long as such rescission, alteration, waiver or addition is done in a
uniform and non-discriminatory manner. No rescission, alteration,
waiver or addition of any rule or regulation in respect of one tenant
shall operate as a rescission, alteration or waiver in respect of any other
tenant.
21. Tenant shall not place a load upon any floor of the Premises
that exceeds the lesser of (a) 50 pounds live load per square foot
(except in locations expressly indicated by Landlord in writing to have
been reinforced to bear greater live loads) or (b) that is allowed by
Law. Business machines and mechanical equipment used in the
Premises that cause vibrations or noise that may be transmitted to any
other space in the Building to such a degree as to be reasonably
objectionable to Landlord or to any tenants or occupants of the
Building shall be placed and maintained by Tenant, at its expense, in
settings of cork, rubber or spring-type vibration eliminators sufficient,
in Landlord's judgment, to eliminate such vibrations or noise.
22. Tenant shall not clean nor require, permit, suffer or allow any
window in the Premises to be cleaned from the outside in violation of
Section 202 of the Labor Law of the State of New York (or its
successor or any law of similar import), any other applicable Law, the
rules of the Board of Standards and Appeals (or any successor body),
or of any other agency, bureau, board or other body having or asserting
jurisdiction.
23. Tenant shall neither contract for, nor employ, any labor in
connection with the maintenance or cleaning of, or providing of any
other services to, the Premises (but excluding Tenant's Property)
without the prior consent of Landlord which consent shall not be
unreasonably withheld. It shall be reasonable for Landlord to withhold
any such consent on the ground that use of such service provider
would disturb labor harmony in the Building.
Tenant agrees that in the event of any inconsistency or conflict between
the terms, provisions, rules and/or regulations contained in Exhibit E
and in Exhibit F, as the case may be, the more restrictive, term,
provision, rule and/or regulation shall apply.
EXHIBIT G
Cleaning Specifications
1. With respect to the Common Areas, reference is made to
Schedule I of Exhibit B of the Declaration.
2. With respect to the Premises, reference is made to Exhibit G-1
annexed hereto.
EXHIBIT G-1
Cleaning Specifications
GENERAL (Common and occupied Areas)
All stone, ceramic tile, marble, terrazzo and other unwaxed or
untreated flooring to be swept nightly. Wash such flooring in building
areas nightly and as necessary during inclement weather.
All linoleum, rubber, asphalt tile and other similar types of flooring
(that may be waxed or treated) to be swept nightly, using approved
dust down preparation. Such flooring in public areas to be waxed or
treated in approved manner as often as necessary to maintain
appearance suitable to Agent.
All carpeting and rugs to be vacuum cleaned nightly.
In all areas remove all gum and foreign matter on sight, spot clean
carpeting and resilient floor each night or as necessary.
Hand dust and wipe clean with damp or treated cloth all furniture
including lamp shades, files, fixtures, window xxxxx, telephones and
convector enclosure tops nightly; wash said xxxxx and tops if necessary
at a minimum, monthly. Horizontal surfaces of window frames to be
hand dusted nightly. Dust all chair rails, trim and baseboards nightly.
Empty all waste receptacles nightly and deliver the recycled waste
paper and waste materials to the locations designated by the Agent.
Where a mechanical compactor is in use for rubbish removal, the
Contractor is required to separate, bale and or deposit the building
waste material in said compactor and/or compactors for removal at no
additional expense to Agent as directed by Agent. Contractor will
supply all clear plastic bags and related equipment necessary in
maintaining a proper rubbish removal and/or recycling operation each
night. Contractor will adopt appropriate recycling procedures as set
forth by Agent.
Empty and clean all ashtrays and screen and clean all sand urns nightly.
Dust all door and other ventilating louvers at least once each week or
as necessary.
Wipe clean all water fountains and coolers nightly, empty waste water
where required.
Keep locker and slop sink rooms in a neat and orderly condition at all
times.
Wipe clean nightly and polish weekly all brass and other bright work.
Check all private stairwells throughout entire Building nightly and keep
in clean condition.
Check all public stairwells through entire building daily and keep in
clean condition. Wash floors once each month or more frequently as
required.
Interior and exterior of metal car and hatch doors (including saddles) of
all elevators to be properly cleaned and treated. Saddles to be hand
rubbed and polished nightly.
Clean and treat all interior metal window frames, pilasters and other
unpainted interior metal surfaces of the perimeter walls of the Building
each time the interior of the windows is washed (quarterly).
Specifically, clean these surfaces each year with a suitable cleaning
solution to obtain results as hereinafter stated. Certain window areas
to be determined at a later date will require this cleaning at more
frequent intervals. Plaster walls or other surfaces adjacent to these
window frames to be protected from staining or damage, and in the
event this condition comes about, Contractor to restore areas to proper
conditions.
All carpet installed throughout the public corridor of the building will
be vacuumed nightly, spot cleaned as needed, and shampooed quarterly
to maintain an appearance suitable to Agent.
LAVATORIES (Core Only)
Sweep and wash all lavatory and rest room floors nightly, using proper
approved disinfectants. Wash and polish all mirrors, powder shelves,
bright work and enameled surfaces in all lavatories and rest rooms
nightly. Machine scrub rest room Boors with proper disinfectants once
a week.
Scour, wash and disinfect all basins, bowls and urinals throughout all
lavatories nightly; odorless disinfectants to be used.
Wash and disinfect all toilet seats both sides nightly.
Hand dust and clean, washing where necessary, all partitions, tile walls,
dispensers and receptacles in all lavatories and rest rooms nightly.
Empty paper towel receptacles and sanitary disposal receptacles in
lavatories and rest rooms nightly and deliver the waste paper and waste
materials to the locations designated by the Agent.
Fill all toilet tissue holders nightly.
Wash waste cans and receptacles in lavatories and rest rooms as
necessary, but at least once a week, to keep waste receptacles clean
and odor free.
Thoroughly wash and polish all wall tile and stall surfaces of lavatories
and rest rooms as often as necessary but in no event less than once
every week.
Hand dust all lights and grills once each month. Wash toilet lighting
fixtures as often as necessary but not less than twice per year.
Fill soap dispensers and paper towel dispensers nightly as required and
report any broken or damaged dispensers to Building management
immediately (all items to be supplied by Contractor). Fill sanitary
dispensers in all lavatories nightly (all items to be supplied by
Contractor).
BUILDING LOBBY
Floor of Building Lobby to be swept and washed nightly with
manufacturer approved cleaner, or as necessary in inclement weather,
scrubbed weekly and treated, with manufacturer approved method, to
provide an appearance suitable to the Agent.
Wash all entrance mats nightly and maintain in clean condition.
Floor in elevator cabs to be washed and waxed and polished nightly,
walls and metal work and saddles to be dusted and rubbed down
nightly. If carpet is used in any elevators, carpet to be vacuum cleaned
nightly, spot cleaned nightly as needed and shampooed monthly, to
maintain an appearance suitable to Agent.
Wipe down mail chutes and mail depositories nightly. Mail chute glass
to be kept clean at all times. Contractor will be responsible for
arrangement with Post Office for removing panels and/or glass.
Vertical surfaces, such as walls, partitions, doors and bucks, of all
corridors and lobbies to be dusted, spot cleaned, treated and polished
as often as necessary, but not less than once (1) per week.
Horizontal louvers to be dusted weekly, spot cleaned and treated as
needed, to maintain a uniform appearance in the lobby.
Clean lights, globes and fixtures (including glass, metal and plastic
enclosures) in lobby, public areas, and maintenance areas as often as
necessary, but not less than once (1) per week.
Clean all unpainted metal work bright and free of finger marks nightly
and treat as necessary. Polish all lobby entrance door saddles and push
bars nightly.
MISCELLANEOUS CLEANING REQUIREMENTS (Common and
occupied Areas)
Vacuum clean all peripheral air conditioning units semi-annually in
accordance with schedule to be set by Agent.
Remove snow from sidewalks, plaza area park area and Building
entrances and approaches, remove snow at curbs and all Building
entrances adequate for access by vehicles and remove snow at street
crosswalks adequate for pedestrian access, all as and when required, at
no additional charge to Agent. All entrances, exits, driveways,
walkways, etc., are to be made accessible and kept clean at all times.
Contractor will provide and maintain proper equipment to be stored on
premises at no cost to Agent, including approved ice melting substance
to all surfaces.
HIGH DUSTING
DO ALL HIGH DUSTING QUARTERLY WHICH INCLUDES
THE FOLLOWING:
Dust all pictures, frames, charts, graphs, and similar wall hangings not
reached in nightly cleaning.
Dust clean all vertical surfaces, such as walls, partitions, doors and
bucks and other surfaces not reached in nightly cleaning except as
otherwise herein provided including closet shelving.
Dust clean all pipes, ventilating and air conditioning louvers, ducts,
high moldings and other high areas not reached in nightly cleaning.
Dust all exterior surfaces of light fixtures, including glass and plastic
enclosures.
DAY PORTERS
Day Porters as may be reasonably required will be assigned daily to the
Building for the following services:
To service all Public and Operating Space throughout the Building.
To service all Plaza and/or Park Areas as necessary.
To keep elevator cars and escalators clean and neat during the day.
To maintain Lobby on street floor and during wet weather keep
entrance ways mopped dry.
Dust and rub down all elevator doors, frames, directory, etc., daily.
To clean roof and setbacks as often as necessary.
To inspect and keep clean fire hoses and equipment
To lay, remove and clean lobby rain mat runners as necessary.
To inspect and service mens lavatories and rest rooms as necessary.
To keep all Lobby and Public Areas in clean condition.
To keep staircases policed during the day.
To maintain exterior granite and exterior metal work along with metal
in Building entrance doors, store front trim, exterior window frames
and mullions. To clean standpipes and sprinkler siamese connections
and hose bibs. Generally, to properly maintain the exterior of the
Building so that there is uniformity of color and brightness at all times.
Keep all sand urns or equivalent type fixtures screened and in a clean
condition.
Fill soap dispensers and paper towel dispensers in mens lavatories and
public rest rooms. If required, waste cans and receptacles to be
emptied and lavatories to be visited and policed a minimum of once in
the morning and once in the afternoon.
Keep in clean condition and water interior and exterior planting areas.
Sweep sidewalks, ramps, loading dock, trucking area, etc., daily, scrub
and steam-clean loading dock walls, floors and ceilings quarterly.
Wash and disinfect sidewalks and stairs each morning, weather
permitting.
Keep fan rooms, motor rooms, electric closets, telephone closets and
air conditioning rooms in clean condition as directed by Owner as
necessary.
To inspect exterior stone or metal clad walls for marks of graffiti daily
and remove as needed.
Matrons will be assigned to the Building in order to visit and inspect all
ladies lavatories at least twice a day. They will insert toilet tissue.
They will also service sanitary napkin dispensers with sanitary napkins
and sanitary seat covers (furnished by the Contractor in accordance
with this Agreement). Fill soap dispensers and paper towel dispensers
in ladies and mens lavatories.
NIGHT PORTERS
Clean truck dock and ramps. Clean main floor and sub-basement
public corridors and facilities, building employee locker rooms and
facilities.
Separate, bail and/or deposit waste paper and rubbish as directed by
Agent in compliance with recycling efforts.
All cleaning services except those performed by day porters, window
cleaners and matrons are (except as herein otherwise provided) to be
performed nightly, 5 nights per week or as otherwise designated.
Contractor is to furnish all the necessary materials, implements,
machinery and supplies for the satisfactory completion of the foregoing
service. Owner reserves the right to furnish any material, i.e, plastic
bags and paper products affecting credits from Contractor.
WINDOW CLEANING SERVICE
All exterior windows, spandrels and fixed glass from the 2nd floor up
to and including the Roof will be cleaned, weather permitting, three
times per year.
All interior windows within tenant occupied areas from the 2nd floor to
the Roof will be cleaned approximately quarterly.
Entrance doors and revolving doors to be cleaned twice daily and kept
in clean condition at all times during the day. All interior and exterior
windows from Plaza to 2nd floor will be cleaned quarterly.
Clean lobby directory glass daily.
Window cleaning procedures shall be used which shall not cause the
energy saving film located on interior windows to be scratched or
damaged or adjacent interior or exterior surfaces to be stained or
damaged.
A daily work slip to indicate type, location and completed windows
cleaned for all interior and exterior glass surfaces will be provided to
Agent's representative to enable verification of services performed.
Contractor to provide necessary labor and materials to properly
perform all services necessary to maintain and operate all window
cleaning rigs (Agents' and/or Contractors') at all times and to meet all
Federal, State and City regulations governing use and operation of
window cleaning rigs.
EXTERMINATING SERVICE
1. Contractor shall perform exterminating service customary in
first class office Buildings once a month throughout the public areas of
the Budding, throughout areas in which Owner's equipment is located
and throughout vacant areas of the Building. Service shall be provided
by a licensed operator with additional cost to Agent. Agent reserves
the right to cancel extermination portion of this contract at any time
and contract directly for same service with vendor of its choice.
2. All public space shall be kept under a controlled treatment
program once (1) each month.
3. Cafeteria(s) and executive dining area(s) shall be kept under a
controlled treatment program once (1) each week.
4. Special emergency calls shall be made on request at no
additional charge.
5. Service shall be rendered at such hours as will not interfere
with normal business of occupants and shall be consistent with sound
Management Practice.
EXHIBIT H
Heating and Air Conditioning Rates
All requests for service at times other than Business Hours must be
submitted in writing via telecopier or mail on the Tenant's letterhead to
the Building superintendent (or such other person designated by
Landlord or the Board of Managers), by a person authorized by Tenant
to make such requests, one (1) day prior to when the additional HVAC
is needed.
In the event of emergency, service may be obtained by calling the
Building superintendent (or such other person designated by Landlord)
in sufficient time to enable the superintendent to follow up with a
written request to confirm and to provide the service requested.
Tenant shall pay to Landlord for Landlord's actual out-of-pocket cost
and expense incurred in connection with providing (x) heating or air
conditioning service to any supplemental HVAC units installed by
Tenant at any time and (y) base building heating or air conditioning
service at times other than Business Hours ("After Hours HVAC").
All rates for such services shall be paid by Tenant to Landlord as
Additional Rent within 20 days after Landlord renders a xxxx or
statement therefor to Tenant.
EXHIBIT I
Insurance Requirements
The following requirements (collectively, the "Insurance
Requirements") shall be complied with by Tenant at all times during the
Term:
1. Insurance to be Maintained by Tenant. At all times during the
Term, Tenant shall maintain, at Tenant's expense, the following
insurance coverage:
(a) fire and extended coverage property insurance covering all physical
loss to the Improvements, Alterations and Tenant's Property in the
Premises for their full replacement value;
(b) broad form commercial general liability insurance (including
protective liability coverage on operations of independent contractors
engaged in construction and blanket contractual liability insurance),
written on a per occurrence basis with an aggregate limit of not less
than $10,000,000, a per-occurrence limit of not less than $5,000,000
and with other limits reasonably satisfactory to Landlord;
(c) business interruption insurance covering risk of loss due to the
occurrence of any of the hazards covered by the insurance to be
maintained by Tenant described in Paragraph 1(a) with coverage in a
face amount of not less than the aggregate amount, for a period of 12
months following the insured-against peril, of 100% of all Rent to be
paid by Tenant under this Lease;
(d) worker's compensation insurance and employer's liability coverage
in statutory limits, and New York State disability insurance as required
by Law, covering all employees; and
(e) such other coverage as Landlord may reasonably require with
respect to the Premises, its use and occupancy and the conduct or
operation of business therein.
Landlord may, from time to time, but not more frequently than once
every year, adjust the minimum limits set forth above.
2. Insurer and Policy Requirements. All insurance policies to be
maintained under Paragraph 1 (a) shall be issued by companies of
recognized responsibility, licensed to do business in the State of New
York, reasonably acceptable to Landlord, and maintaining a rating of
A-/XII or better in Best's Insurance Reports-Property-Casualty (or an
equivalent rating in any successor index adopted by Best's or its
successor), (b) shall provide that they may not be canceled or modified
unless Landlord and all additional insureds and loss payees thereunder
are given at least 30 days prior written notice of such cancellation or
modification, (c) shall name, as additional insureds, Landlord, Ground
Lease (as defined in the Declaration) the managing agent of the Unit,
the managing agent of the Common Elements, the Board of Managers,
the owners of any other condominium units in the Building, and any
Senior Interest Holder whose name and address shall have been
furnished to Tenant and (d) shall be primary and non-contributory in all
respects. All policies providing fire and extended coverage property
insurance coverage pursuant to Paragraph 1(a) shall name Landlord, as
agent for the Board of Managers, as loss payee with respect to
Improvements and Alterations, and shall name Tenant as loss payee
with respect to Tenant's Property.
3. Evidence of Coverage; Renewals. Prior to the Commencement
Date or, in the case of insurance required during the performance of
Alterations, prior to the commencement of the Alterations, Tenant shall
deliver to Landlord certificates of insurance for the insurance coverage
required by Paragraph 1 and, if required by Landlord, copies of the
policies therefor, in each case, in form and providing for deductibles
reasonably satisfactory to Landlord. Tenant shall procure and pay for
renewals of such insurance from time to time before the expiration
thereof, and Tenant shall deliver to Landlord certificates of renewal at
least 30 days before the expiration of any existing policy. If Tenant
fails to procure or maintain any insurance required by this Lease and to
pay all premiums and charges therefor, Landlord may (but shall not be
obligated to) pay the same, and Tenant shall reimburse Landlord,
within 20 days after demand, for all such sums paid by Landlord. Any
such payment shall not cure or waive any default by Tenant in the
performance of its obligations hereunder, nor shall the foregoing right
of Landlord to make such payment in any way limit, reduce, diminish
or impair the rights of Landlord under the terms of this Lease or at
Law or in equity arising as a result of any such default.
4. Additional Insurance, Blanket Insurance. Tenant shall not
carry separate or additional insurance, concurrent in form or
contributing in the event of any loss or damage with any insurance
required to be obtained by Tenant under this Lease unless the parties
required by Paragraph 2 to be named as additional insureds or loss
payees thereunder are so named. Tenant may carry any insurance
coverage required of it hereunder pursuant to blanket policies of
insurance so long as the coverage afforded Landlord and the other
additional insureds or loss payees, as the case may be, thereunder shall
not be less than the coverage that would be provided by direct policies.
5. Mutual Waiver of Recovery. Neither Landlord, Tenant nor the
Board of Managers shall be liable to the other or to any insurance
company (by way of subrogation or otherwise) insuring any of the
other parties, and each hereby waive their entire right of recovery
against the others, for any loss or damage arising out of or incident to
the perils insured, or required pursuant to this Lease to be insured,
against under any property insurance policy insuring the Unit (in the
case of Landlord) or the Building and/or the Common Elements (in the
case of the Board of Managers), and any property or business
interruption insurance policy insuring the Improvements, Tenant's
Property and/or Tenant's business interest (in the case of Tenant), even
though such loss or damage might have been occasioned by the
negligence of Landlord, Tenant, the Board of Managers or their
respective agents, employees, contractors, invitees and/or permitted
subtenants. Each of Landlord and Tenant (a) shall give notice to their
respective insurers that the foregoing mutual waiver of recovery is
contained in this Lease and, if required by any such insurer, shall obtain
such insurer's prior consent to the foregoing waiver of its and its
insured's right of recovery, and (b) shall endeavor to obtain from their
respective insurers an appropriate clause in, or an endorsement upon,
each such insurance policy pursuant to which each such insurer shall
agree that the foregoing waiver shall not affect the validity or
enforceability of its insured's coverage. If such a clause or endorsement
is obtainable only upon payment of an additional premium, each party
shall pay such additional premium and, if either Landlord or the Board
of Managers are required to pay such additional premium, the same
shall be included in Operating Expenses. If Tenant's insurer shall refuse
to issue such clause or endorsement even with an additional premium,
then Landlord shall have the right to designate another insurer with a
Best's Insurance Guide rating of A-/XII or better who would be
prepared to permit such clause or endorsement and Tenant shall use
such other insurer. If it is not possible to obtain a clause or
endorsement of the type described in clause (b) above, then the party
unable to obtain such clause or endorsement shall notify the other
parties of this fact and such parties shall no longer be obligated
hereunder to endeavor to obtain such a clause or endorsement in their
insurance policies. The provisions of this Paragraph 5 shall be
applicable to any new or renewal property or business interruption
insurance policies which Tenant may obtain during the Term.
6. Insurance for Alterations. During the performance of any
Alteration, Tenant shall maintain the insurance described in Exhibit J.
EXHIBIT J
Alteration Requirements
The following requirements (collectively, the "Alteration
Requirements") shall be complied with as a condition to the
performance of all Alterations by Tenant pursuant to Section 8.1 of the
Lease:
1. Contractors.
1.1. Approval of Contractors. Prior to commencing any Alteration
(other than a Decorative Alteration), Tenant shall submit to Landlord
for its approval (which shall not be unreasonably withheld or delayed) a
list of the contractors and subcontractors (categorized by trade) which
Tenant proposes to use or from which Tenant proposes to solicit bids
in connection therewith. If Landlord shall fail within 30 days (10
Business Days in the case of Tenant's initial Alterations) to approve
Tenant's proposed contractors or subcontractors, then for all purposes
of this Lease Landlord shall be deemed to have approved the same. If,
prior to or after commencement of any Alteration, there is a change in
the contractors or subcontractors, Tenant shall submit a new or
supplemental list and the foregoing provisions of this Paragraph 1 shall
be applicable thereto. As of the date hereof, each of the Board of
Managers and the Landlord approves the architects, engineers,
contractors and subcontractors listed on Exhibit Q annexed hereto for
the Performance of Tenant's Work. Landlord agrees to use all
reasonable efforts to promptly approve or disapprove Tenant's
proposed contractors or subcontractors before the 30 day (or 10
Business Days, as the case may be) time period allowed on this
Paragraph 1.1.
1.2. Contractors for Certain Work. Notwithstanding anything to
the contrary in the Building Standards or in this Exhibit J, connections
to, and disconnections from, the Building's fire safety system, the
Building's sprinkler system, and the Building's condenser or chilled
water system shall be performed, in each case, solely at Tenant's
expense, and only by contractors acceptable to both the Board of
Managers and Landlord.
2. Submission of Plans and Specifications.
2.1. Number and Form. Prior to commencing any Alteration (other
than a Decorative Alteration or the installation or removal of Tenant's
Property), Tenant shall submit (i) to the Building Manager 1 paper
sepia and 3 paper sets of the Plans and Specifications for such
Alteration together with one copy on disk in a format to be determined
by Landlord (except with respect to Tenant's Initial Plans and
Specifications which is governed by Paragraph 8 of Exhibit D-3) and
(ii) to Landlord (and, if Landlord requests, to the Board of Managers) a
statement or certificate from a licensed architect or professional
engineer licensed to practice as such in the State of New York selected
by Tenant and reasonably satisfactory to Landlord ("Tenant's
Architect") certifying that such Alteration is not a Structural Alteration
(as such term is defined in the Declaration). As used in the preceding
sentence, the term "Plans and Specifications" shall mean architectural,
mechanical, electrical, sprinkler and structural plans and specifications
conforming to the requirements set forth in the Building Standards and
prepared at Tenant's cost and expense (which cost and expense shall be
included in the Cost of the Work for the purposes of Paragraph 6.1 of
Exhibit D) by Tenant's Architect, which Plans and Specifications shall
bear the seal of Tenant's Architect and shall be in form, content and
detail (a) sufficient to secure all required governmental approvals and
permits, (b) reasonably sufficient for a contractor to perform the work
covered thereby and shown thereon, and (c) reasonably sufficient to
determine (i) if the materials to be used by Tenant meet the Building
Standards, (ii) if the Alteration is likely to comply with all Laws, and
(iii) the effect of the Alteration on the structural components and
Building Service Systems of the Unit and the Building. The Initial
Plans and Specifications shall also comply with the provisions of
Schedule D-3 to Exhibit D of this Lease.
2.2. Standards, Time and Procedures for Approval. All
submissions of Plans and Specifications shall be made, together with a
letter from Tenant requesting approval of such Plans and
Specifications, by hand delivery to the Address of the Building
Manager, or to such other Persons and address as may be hereafter
designated by Landlord (the "Building Manager"). Landlord shall not
unreasonably withhold or delay its approval of any Plans and
Specifications (or any revisions thereto) submitted by Tenant and, in
any case, shall, within 30 days (10 Business Days in the case of the
Initial Plans and Specifications) of Landlord's receipt of such Plans and
Specifications or such revisions, as the case may be, either (a) approve
of such Plans and Specifications or such revisions or (b) disapprove of
such Plans and Specifications or such revisions and include with such
disapproval a statement of the reasons therefor (which reasons
themselves must be reasonable); provided, however, that if such Plans
and Specifications or such revisions are of a nature and/or complexity
not customarily found in build-outs of office space in Comparable
Buildings, then such 30-day period (10 Business Day period in the case
of the Initial Plans and Specifications) shall be extended to 45 days (15
Business Days in the case of the Initial Plans and Specifications). If
Landlord shall fail within the time period set forth above to approve or
disapprove any Plans and Specifications (including with such
disapproval the required statement), then, for all purposes of this
Exhibit J and the Lease, Landlord shall be deemed to have approved
the same.
2.2.1. Any revision to previously-approved Plans and Specifications,
regardless of whether such revision is made prior to or after
commencement of such Alteration, shall be subject to review and
approval or disapproval by Landlord in accordance with the
requirements of the preceding paragraph. Landlord covenants to act as
promptly as commercially practicable to respond to such revisions, but
in no event later than the time periods specified in Paragraph 2.2 above.
2.2.2. Tenant acknowledges that (a) the Board of Managers has the
right to approve of the Plans and Specifications pursuant to the
Declaration.
2.2.3. The review and approval by Landlord, the Board of Managers
and/or their respective agents of any Alteration or of any Plans and
Specifications are solely for the benefit of Landlord and/or the Board of
Managers, and, except as expressly set forth in this Lease, neither
Landlord nor the Board of Managers nor any of their respective agents
shall have any duty toward Tenant or any other Person claiming
through or under Tenant to grant or withhold their consent, nor shall
Landlord or the Board of Managers or any of their respective agents 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 the Plans and Specifications, the
Alteration, its design, or any other matter regarding the Alteration.
3. Governmental Approvals and Permits. Prior to commencing
any Alteration (other than a Decorative Alteration), Tenant, at its
expense (which expense may be included in the Cost of Work for
Paragraph 6.1 of Exhibit D), (a) shall prepare all applications and other
documents necessary for filing with the appropriate governmental
authorities, including the Plans and Specifications, required for the
lawful commencement, performance and completion of any Alteration,
(b) shall submit to the Building Manager (and, if otherwise required
under this Lease, Landlord and the Board of Managers) for its
execution one (or more, if necessary) "owner-signed" set of such
applications and other documents requiring "owner" execution thereof,
and (c) shall, except as otherwise provided herein, file such applications
and other documents and thereafter secure and maintain all necessary
permits and approvals for the construction of the Alteration. Tenant
shall deliver copies of all such permits and approvals to the Building
Manager promptly upon obtaining the same. With respect to the
matters set forth in clauses (a) and (c) in the preceding sentence,
Landlord agrees to cooperate with Tenant, and to execute and deliver
such documents as may be reasonably necessary in connection with
Tenant's applications and filings, provided that such documents as to
Tenant's information are completed and are otherwise satisfactory for
filing. And, to the extent that such applications or filings may only be
obtained or filed by Landlord (and not Tenant or its agents), Landlord
agrees (at Tenant's cost and expense) to obtain and/or file such
applications or filings upon Tenant's prior written request, provided
that Tenant reimburses Landlord for all costs and expenses incurred in
connection therewith.
4. Insurance for Alterations.
4.1. Generally. Throughout the performance of any Alteration,
Tenant shall maintain, with insurers meeting the requirements of
Paragraph 2 of Exhibit I, the insurance specified in Paragraph 4.2 of
this Exhibit J and any other insurance that the Board of Managers may
require if such other insurance is required by the Board of Managers of
all owners of condominium units in the Building and all tenants and
occupants thereof who are performing Alterations. Landlord and the
Persons specified in Paragraph 2 of Exhibit I shall be designated as
additional insureds on the insurance policies. Tenant shall furnish
Landlord and the Board of Managers with certificates of insurance
evidencing that such insurance has been obtained and is in effect prior
to the commencement of any Alteration.
4.2. Required Insurance. Throughout the performance of any
Alteration, Tenant shall maintain the following insurance: (a) workers'
compensation insurance and employer's liability coverage in statutory
limits, (b) builder's risk insurance, with vandalism and malicious
mischief endorsements, completed value form covering all physical loss
(including any loss of or damage to supplies, machinery and
equipment) in connection with the performance of such Alteration, and
(c) broad-form commercial general liability insurance, with a completed
operations endorsement and a contractual liability endorsement,
covering any occurrence in or about the Premises, the Unit or the
Building in connection with such Alteration, with limits of not less than
$5,000,000 and with a $5,000,000 limit for bodily injury, including
death, property damage and personal injury. Landlord may, from time
to time, but not more frequently than once every year, adjust the
minimum limits set forth above.
4.3. Contractor's Indemnity. Tenant shall require all contractors
engaged by Tenant and all subcontractors engaged by any such
contractor to deliver to Landlord an instrument providing as follows
prior to commencing work on any Alteration:
"The undersigned shall indemnify and hold harmless Landlord, Tenant,
the owners of the other condominium units in the Building, the
managing agent of the Unit, the managing agent of the Common
Elements, the Board of Managers and any Senior Interest Holder and
the officers, partners and directors of any of them (the "indemnities")
from and against, any loss, cost, expense, liability or damage (including,
without limitation, judgments, attorneys' fees, court costs and the cost
of appellate proceedings), that any indemnitee may incur because of
injury to, or death of, any Person or on account of any damage to
property, including loss of use thereof, or any other claim to the extent
arising out of the negligence or willful misconduct of the undersigned
or any of its subcontractors or any of the officers, directors, employees
or agents of the undersigned or of any such subcontractors, or anyone
directly or indirectly employed by the undersigned or anyone for whose
acts the undersigned may become liable regardless of whether such
loss, cost, expense, liability or damage may be caused in part by the
negligence of an indemnitee."
5. Reimbursement of Costs and Expenses. Tenant shall pay to
Landlord and/or the Board of Managers, within 20 days after written
demand therefor (which demand shall include bills, invoices and other
back-up documentation reasonably sufficient to substantiate such costs
and expenses), (a) all reasonable costs and expenses (which expenses
may be included in the Cost of Work for Paragraph 6.1 of Exhibit D)
incurred by Landlord and/or the Board of Managers in reviewing
Tenant's Plans and Specifications (other than Initial Plans and
Specifications for the Premises) for, and inspecting work being
performed on, any Alteration to determine whether it is being
performed in accordance with the Plans and Specifications and in
compliance with Law and the requirements of this Lease, including the
reasonable fees of any attorneys, architects, engineers, building code
consultants or other Persons retained by Landlord and/or the Board of
Managers for such purpose, and (b) all reasonable incremental costs
(e.g., the costs of supplemental security personnel, temporary
maintenance service, use of hoist, removal of waste and debris)
incurred by Landlord and/or the Board of Managers as a result of any
Alteration.
6. Completion of Alterations.
6.1. Evidence of Completion. Within 30 days after completion of
an Alteration, Tenant shall, at its expense, secure all required final
approvals, certificates or other documents required hereunder in
connection with such Alteration and deliver copies thereof to Landlord
promptly upon obtaining the same.
6.2. Violations and Liens. (a) Tenant, at its expense, and with
diligence and dispatch, shall procure the cancellation of all notices of
violation arising from or otherwise connected with any Alteration, or
any other work, labor, services or materials done for or supplied to
Tenant, or any Person claiming through or under Tenant, issued by any
governmental or public authority. Subject to Paragraph 6.2(b) below,
Tenant, at its expense, shall satisfy or discharge of record each
mechanics or other lien or encumbrance filed, claimed or asserted in
connection with any Alteration or any other work, labor, services or
materials done for or supplied to Tenant or any Person claiming
through or under Tenant (each, a "Mechanics Lien") within 20 days
after it is filed. If Tenant does not so timely satisfy or discharge any
such Mechanics Lien, Landlord or the Board of Managers may (but
neither shall be obligated to) satisfy or discharge the same and take any
other action reasonably necessary to protect the title to the Premises or
the Building with respect to such Mechanic's Lien, including without
limitation, dismissing an action to foreclose such Mechanic's Lien and
removing a notice of pendency of such action. Tenant shall reimburse
Landlord (or the Board of Managers, as the case may be) within 20
days after demand for all reasonable costs and expenses so incurred
without regard to any defense or offset that Tenant may have had
against the claimant.
(b) Provided Tenant is not in default under the Lease, Tenant shall
have the right to contest in good faith and with diligence the
correctness or the validity of any Mechanics Lien if Tenant procures a
lien release bond (covering all amounts, including attorneys fees,
potentially recoverable by the claimant and otherwise in a form and
issued by a surety satisfactory to Landlord) in an amount equal to
125% of the amount of the Mechanics Lien. Nothing in this Exhibit J
or in the Lease shall be construed as a consent on the part of Landlord
to subjecting Landlord's estate in the Premises to any lien or liability
under the Lien Law of the State of New York.
6.3. As Built Plans. Within 30 days after completion of an
Alteration, Tenant shall, at its expense, deliver to each of Landlord, the
Board of Managers and the Building Manager a full and complete set
of "as-built" plans in the form required by the Building Standards.
6.4. [Intentionally Deleted.]
6.5. Relocation of Smoke Detectors. If any smoke detectors are
relocated during an Alteration, Tenant shall, at its expense, relocate
such smoke detector in accordance with all Laws and Building
Standards applicable thereto, and if requested by Landlord, provide to
Landlord a certificate in form and content reasonably satisfactory to
Landlord and Tenant.
7. General Conditions for Performance of Alterations.
7.1. Performance of Work. Tenant shall perform all work in
accordance with the Building Standards, the Building Rules and
Regulations, and Law. Such work shall be diligently performed in a
good and workmanlike manner so as not to unreasonably interfere
with, or cause unreasonable interruption of, the operation and
maintenance of the Building, cause unreasonable interference with the
use and occupancy of the Unit or the Building by other tenants and
occupants and in a manner that does not unreasonably interfere with,
delay, or impose additional expense on Landlord or the Board of
Managers with respect to, the construction, maintenance, cleaning,
repair, safety, management, security or operation of the Unit or the
Building, as the case may be.
7.2. Inspection. Landlord and the Board of Managers (or their
agents) shall have the right to inspect work on any Alteration at
reasonable times (except in the case of emergencies) after reasonable
prior notice to Tenant (which notice may be oral), except in an
emergency in which case no notice shall be required. Except in the
case of an emergency, an agent or employee of Tenant shall
accompany Landlord, the Board of Managers or any of their agents on
any such inspection.
7.3. Labor Harmony. If any Alteration being performed by Tenant
or its contractors causes any labor disturbances or unrest, Tenant shall,
or shall cause Tenant's contractor to, rectify the same as soon as is
reasonably possible following written demand therefor by Landlord or
the Board of Managers, unless failure to rectify such disturbance or
unrest immediately will result in an emergency situation, in which event
Tenant shall, or shall cause Tenant's contractor to, rectify such
disturbance or unrest immediately. If Tenant or Tenant's contractor
shall fail to comply with the aforesaid demand (whether or not such
failure is Tenant's fault), Landlord, by further notice to Tenant, may
direct Tenant to suspend all work being performed by or on behalf of
Tenant in connection with such Alteration, and Tenant shall thereupon
immediately do so until such disturbance or unrest is rectified in the
reasonable judgment of Landlord or the Board of Managers, as the
case may be.
7.4. Use of Freight Elevators. Tenant shall have the right, together
with any other tenants or occupants of the Building, to reserve, from
time to time, the freight elevators serving the Premises for its use by
reasonable prior notice to the Building Manager and subject to the
Rules and Regulations. If Tenant uses the freight elevators after
Business Hours, Tenant shall pay the cost of the Building employee(s)
required to operate such freight elevator after Business Hours. All
building materials and other bulky freight shall be transported in
accordance with the Building Standards.
7.5. Construction Hours. Any Alteration which is noisy or
otherwise disruptive to other occupants of the Building shall be
performed only during non-Business Hours, and in any case, any
Alteration shall be performed only in accordance with the Building
Standards.
7.6. Decorative Alterations. Tenant may, without complying with
Paragraph 1, 2, 3, 6.1 and 6.3 of this Exhibit J, make any Alteration
which consists solely of painting, installing or removing wallcovering or
installing or removing carpeting or other floor covering or which
consists solely of installing or removing Tenant's Property (collectively,
a "Decorative Alteration"); provided, however, that Tenant shall
perform such Decorative Alteration in accordance with all other
applicable provisions of this Exhibit J.
EXHIBIT K
Form of Subordination, Nondisturbance and
Attornment Agreement
THIS SUBORDINATION, NONDISTURBANCE AND
ATTORNMENT AGREEMENT (this "Agreement") is made as of
________ __, 1997, by and among THE BOARD OF MANAGERS
OF THE 125 BROAD CONDOMINIUM (the "Board"),
XXXXXXXXXX & CO. INC., a New York corporation ("Tenant"),
and NY BROAD HOLDINGS, INC., a Delaware corporation
("Landlord").
WHEREAS, Tenant and Landlord have entered into that certain Office
Space Lease dated as of ___________ __, 1997 (as the same may be
amended from time to time, the "Lease") by which Tenant shall lease
from Landlord certain space being all of the 15th and 16th floors (such
space, together with such other additional space, including the First
Expansion Space and Second Expansion Space (as such terms are
defined in the Lease) with respect to portions of the 14th floor, as
Tenant may from time to time be leasing pursuant to the Lease, the
"Premises"), in Commercial Unit C (the "Unit") in The 125 Broad
Condominium (the "Condominium") established by that certain
Declaration of Condominium dated December 23, 1994, recorded in
the Office of the Register of the City of New York in New York
County on January 10, 1995 in Reel 2171 at Page 1959 (as such
declaration may hereafter be amended or restated from time to time,
the "Declaration");
WHEREAS, the Premises are leased for a term of approximately 16
years with one (1) five (5) year renewal option; and
WHEREAS, Tenant has requested Landlord to cause the Board to
execute and deliver to Tenant this Agreement,
NOW, THEREFORE, in consideration of the foregoing, and of the
mutual premises herein contained, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:
1. The Lease, and the rights of Tenant under it, are subordinate
and subject to (i) the Declaration, (ii) the By-Laws of The 125 Broad
Condominium attached to the Declaration (the "By-Laws"), (iii) the
Rules and Regulations of The 125 Broad Condominium attached to the
Lease as Exhibit F (the "Rules and Regulations"), and (iv) the Building
Standards for Alterations for The 125 Broad Condominium attached to
the Lease as Exhibit E (the "Building Standards") and all amendments
thereto (the Declaration, the By-Laws, the Rules and Regulations and
the Building Standards being hereinafter collectively referred to as the
"Condominium Documents"). Notwithstanding the preceding
sentence, neither the Lease nor Tenant's rights thereunder shall be
subject and subordinate to, nor shall Tenant be required to comply
with, (a) any amendments or modifications to any of the Condominium
Documents that impair or interfere with Tenant's rights or increase
Tenant's obligations under the Lease in a discriminatory manner, or (b)
any resolutions or decisions of the Board adopted pursuant to the
Condominium Documents after the date hereof that impair or interfere
with Tenant's rights or increase Tenant's obligations under the Lease in
a discriminatory manner.
2. The Lease is subordinate to the Board's lien on the Unit for
Common Charges and Unit Expenses (as such terms are defined in the
Declaration) and any interest thereon in accordance with the
Declaration (the "Board's Lien").
3. The Lease is subordinate to the Ground Lease (as hereinafter
defined), as the Ground Lease may be modified or amended from time
to time.
4. As long as at the time of the exercise of any right described in
clauses (a), (b) or (c) below, no default under the Lease shall have
continued for such period as would entitle Landlord to terminate the
Lease or dispossess Tenant thereunder, Tenant shall not be named or
joined in any action or proceeding to foreclose the Board's Lien, and
the Lease shall not be terminated, nor shall any of the rights or
obligations of Tenant granted under the Lease be affected in any
manner, in (a) any foreclosure or other action or proceeding instituted
under or in connection with the Board's Lien, (b) the exercise of any
rights of the Board in connection with the enforcement of the Board's
Lien, or (c) the taking of possession of the Premises or the Unit
pursuant to any provisions of the Condominium Documents or
otherwise by the Board or any person(s) acquiring the interest of
Landlord, their successors and assigns, by reason of foreclosure and,
subject to proviso (ii) below, the Board or such person(s) shall succeed
to Landlord's obligations under the Lease; provided, however, that (i)
no provision in the Lease allowing a reduction in the rent payable by
Tenant thereunder by reason of a foreclosure of the Board's Lien shall
survive any such foreclosure, even though Tenant is not joined in such
action or proceeding, it being understood and agreed that the Board
need only given Tenant written notice of such foreclosure for this
clause (i) to be operative, and (ii) the person acquiring the interest of
Landlord by reason of foreclosure of the Board's Lien and such
person's successors and assigns (collectively, the "Purchaser") shall not
be:
(A) bound by any rent which Tenant might have paid for more than
the current month to any prior landlord under the Lease;
(B) liable for any previous act or omission of any prior landlord
under the Lease;
(C) subject to any defense or offset previously accrued in favor of
Tenant against any prior landlord under the Lease;
(D) liable for the return of any deposit, rental security or any other
sums deposited with any prior landlord under the Lease, except to the
extent such sums have been paid over to the Purchaser;
(E) obligated to complete any construction work required to be
done by Landlord pursuant to the provisions of the Lease, to reimburse
Tenant for any construction work done by Tenant, or to make any
funds available to Tenant in connection with any such construction
work;
(F) required to make any repairs to the Premises required as a
result of fire or other casualty or by reason of condemnation, unless the
Board, as Landlord, shall be obligated under the Lease to make such
repairs and shall have received sufficient casualty insurance proceeds or
condemnation awards to finance the completion of such repairs;
(G) required to make any capital improvements to the Building or
to the Premises which Landlord may have agreed to make, but had not
completed, or to perform or provide any services not contained in
Article VI of the Lease or not related to possession or quiet enjoyment
of the Premises;
(H) required to perform any of Landlord's obligations under any
lease takeover agreement or similar arrangement between Tenant and
Landlord, nor subject to any offsets provided for under the Lease
related to Landlord's failure to perform its obligations thereunder or
under any such agreement except for offsets in Article XXII of the
Lease; or
(I) subject to any provisions of the Lease which are personal to
Landlord or otherwise impossible for the Board to perform.
5. Tenant shall not, without obtaining the prior written consent of
the Board, (a) enter into any agreement amending, modifying or
terminating the Lease, (b) prepay any of the rents, additional rents or
other sums due under the Lease for more than one (1) month in
advance of the due dates thereof, except pursuant to estimates of taxes
and operating expenses in Article IV of the Lease, (c) voluntarily
surrender the Premises or terminate the Lease without cause or shorten
the term thereof, except pursuant to Article IX, Article X, and Article
XX of the Lease, (d) assign the Lease or sublet the Premises or any
part thereof other than pursuant to the provisions of the Lease, or (e)
subordinate the Lease to any other lien; and any such amendment,
modification, termination, prepayment, voluntary surrender, assignment
or subletting or subordination, without the Board's prior consent, shall
not be binding upon the Board; it being agreed that, notwithstanding
anything in this paragraph to the contrary, no consent of the Board
shall be required in connection with Tenant's exercise of its
Termination Right (as hereinafter defined).
6. Tenant hereby represents and warrants to the Board that as of
the date hereof, (a) Tenant is the owner and holder of the Tenant's
interest under the Lease, (b) the Lease is in full force and effect and has
not been modified or amended, and no other agreements or
understandings exist with respect to the Tenant's interests under the
Lease or the Premises, except for such agreements as are specifically
contemplated by the Lease, (c) the term of the Lease commenced on
the Commencement Date (as such term is defined in the Lease) and
will expire on the Expiration Date (as such term is defined in the Lease)
pursuant to the provisions thereof, (d) except as provided in Article
XVII of the Lease, there are no extension or renewal options or
obligations under the Lease, (e) there is no security deposit, but Tenant
has the right to post security in circumstances described in Article
XXIV, (f) except as provided in Article XVIII, Article XIX and Article
XXIII of the Lease, the Lease does not contain any expansion option
with respect to any other portion of the Unit, nor any purchase option
or first-refusal rights or other rights or interests with respect to the
Premises, (g) the construction of the Premises has not been completed
for Tenant's initial occupancy thereof, and Tenant has not taken
possession of the same on a rent-paying basis, and rent shall be abated
under the Lease through and including the installment due on October
8, 1998 as such date may be extended pursuant to the Lease, (h)
Tenant has not received any notice that Tenant is in default under any
of the terms, covenants or provisions of the Lease, and Tenant, to the
best of its knowledge, knows of no event which, but for the passage of
time or the giving of notice or both, would constitute an event of
default by Tenant under the Lease, (i) neither Tenant nor, to the best of
Tenant's knowledge, Landlord has commenced an action or given or
received any notice for the purpose of terminating the Lease, and (j) all
rents, additional rents or other sums due and payable under the Lease
(of which none have become due or payable at present) have been paid
in full, and no rents, additional rents or other sums payable under the
Lease have been paid for more than one (1) month in advance of the
due dates thereof.
7. (A) The Board acknowledges that under the terms of the
Lease, Tenant has the right to (i) extend the term of the Lease pursuant
to the provisions of Article XVII of the Lease (the "Renewal Right"),
(ii) expand its occupancy in the Unit to include the fourteenth floor in
the Unit pursuant to the provisions of Articles XVIII and XIX of the
Lease and additional storage space pursuant to Article XXII (the
"Expansion Right") and (iii) terminate the lease pursuant to Articles IX,
X or XX of the Lease (the "Termination Right").
(B) The Board agrees that the exercise by Tenant of (i) its Renewal
Right pursuant to the terms and conditions of Article XVII or (ii) its
Expansion Right pursuant to the terms and conditions of Articles
XVIII and XIX of the Lease will not be deemed to constitute a new
lease or occupancy for purposes of Paragraph 18(a) and (b) of the
Declaration, and will not be considered a new lease, sublease,
assignment or occupancy under the Lease or Declaration requiring the
Board's further consent.
(C) The Board acknowledges Tenant's right to allow certain
individuals or entities to occupy desk space in the Premises in
accordance with Section 14.9 of the Lease. The Board agrees that the
occupancy by certain individuals or entities of desk space in the
Premises pursuant to Section 14.9 of the Lease will not be deemed to
violate the requirements of Paragraph 18 of the Declaration, and will
not be considered a lease, sublease, assignment or occupancy under the
Lease or Declaration requiring the Board's further consent.
(D) The Board acknowledges and consents to the recording of the
Memorandum (and the Termination of Memorandum) in accordance
with Section 16.3.
(E) The Board hereby agrees that it shall use all reasonable efforts
to enforce the Building Rules and Regulations and the terms and
provisions of the Condominium Documents, in each case, to the extent
such relate to the use to the roof of the Building in a uniform and non-
discriminatory manner with respect to the occupants of the Building
(including without limitation Tenant).
(F) The Board hereby agrees to permit the Landlord to install,
maintain and operate, and allow Tenant a listing of at least 138 names
in, the Building Directory (as defined in the Lease) in accordance with
the specifications set forth in Section 16.16 of the Lease.
(G) The Board of Managers has been advised that Tenant intends
(i) to install a staircase between the fifteenth (15th) and sixteenth (16th)
floors of the Premises and, upon exercise of the First Expansion Option
or the Second Expansion Option, between the fourteenth (14th) and
fifteenth (15th) floors and (ii) to install a vault on the fifteenth (15th) or
sixteenth (16th) floor of the Premises, and the Board of Managers
agrees that it will not unreasonably withhold its consent to the plans for
such alterations; provided that such alterations comply with the
alteration provisions of the Condominium Documents and Tenant has
made adequate provision in its plans to protect the structure and
integrity of the Building.
8. The Board hereby certifies that, as of the date hereof, to the
best of the Board's knowledge, the Landlord is not in default under the
Condominium Documents and no notice of default has been delivered.
9. The Board of Managers acknowledges receipt of the notice
letter described in Exhibit X to the Lease with respect to the delivery of
notices under the Condominium Documents to Tenant. The Board
agrees that Tenant, at its sole option, after receipt of the above
mentioned notice from the Board, may cure any pending default of
Landlord; provided, that, in no event shall Tenant's time period to cure
Landlord's default hereunder extend beyond the time period permitted
to Landlord for such cure, if any, under the Condominium Documents.
Notice to Tenant should be in accordance with the Notice provisions
(Section 16.13) of the Lease.
10. In the event that the Purchaser succeeds to the interests of
Landlord under the Lease by reason of foreclosure of the Board's Lien
or otherwise, Tenant shall be bound to the Purchaser under all of the
terms, covenants and conditions of the Lease for the balance of the
term thereof remaining, with the same force and effect as if the
Purchaser were the landlord under the Lease, and Tenant does hereby
attorn to the Purchaser, including the Board if it be the Purchaser, as its
landlord, said attornment to be effective and self-operative without the
execution of any further instruments upon the Purchaser succeeding to
the interest of Landlord under the Lease, provided that Tenant shall not
be obligated to pay any rent to the Purchaser until Tenant has received
notice from the Purchaser that it has succeeded to such interest.
Tenant shall be entitled to rely solely upon such notice given by
Purchaser.
11. This Agreement shall run with the land and bind all future
Boards of Managers and owners of units in the Condominium. This
Agreement may not be modified orally or in any manner other than by
an agreement in writing signed by the parties hereto or their respective
successors in interest. This Agreement shall inure to the benefit of and
be binding upon the parties hereto, their respective representatives,
successors and assigns.
12. The Premises shall be used solely for office use and related uses
incident thereto in accordance with the terms, provisions, covenants
and conditions set forth in the Declaration.
13. As used herein, "Ground Lease" shall mean: That certain
Lease dated December 31, 1968, between Xxxx X. XxXxxxx and Sol G.
Atlas, as landlord, and Two New York Plaza Company, as tenant, a
memorandum of which was recorded on May 21, 1969, in the Office of
the Register, New York County, New York (the "Register's Office"),
in Reel 140, Page 730, which lease affects certain real property located
in the City County and State of New York, commonly known as 000
Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx, which lease has been amended
by the following agreements: (a) Memorandum of Agreement
modifying Lease, dated as of December 1, 1969, and recorded on
March 19, 1970, in the Register's Office in Reel 168, Page 1219; (b)
Memorandum of Modification of Lease with option to purchase, dated
as of June 28, 1974, and recorded on July 2, 1974, in the Register's
Office in Reel 318, Page 401; (c) Assignment of Lease to American
Express Company, dated June 28, 1974, and recorded in the Register's
office in Reel 318, Page 410; (d) Assignment of Lease to American
Express Company and American Express International Banking
Company, dated March 26, 1976, and recorded on April 19, 1976, in
the Register's Office in Reel 367, Page 80; (e) Assignment of Partial
Interest in Lease to Ardmore Properties, Inc., recorded in the Register's
Office in Reel 585. Page 1881; (f) Assignment of Lease by Ardmore
Properties, Inc. to American Express Company dated June 24, 1982,
and recorded in the Register's Office on June 29, 1982, in Reel 628,
Page 1067; (g) Amendment of Lease by and between Xxxxxx Atlas
Bass, Xxxx X. XxXxxxx and Xxxxxx Xxxx, as Executors under the Last
Will and Testament of Sol G. Atlas, deceased, and Xxxx X. XxXxxxx,
individually, as lessors, and American Express Company and American
Express International Banking Corporation, as lessees, dated July 1,
1979, and recorded in the Register's Office on April 1, 1983, in Reel
679, Page 1277; (h) Assignment of Lease by American Express
Company and American Express International Banking Corporation, as
assignors, to Olympia & York 000 Xxxxx Xxxxxx Company, as assignee,
dated February 1, 1983, and recorded in the Register's Office on
February 3, 1983, in Reel 695, Page 1305 and (i) Modification
Agreement for Ground Lease, dated as of December 28, 1994, among
Xxxxxx Atlas Bass and Xxxxxx Xxxxxxx, as Executors, and Xxxx
XxXxxxx, as Executrix, as Lessors, and Xxxxxxxx & Xxxxxxxx, Xxxxxxx
& Xxxxxxx, and Landlord, as Lessee.
14. This Agreement may be executed in one (1) or more
counterparts, each of which shall be deemed to be an original, which,
when read together, shall constitute one and the same instrument.
15. (a) The Board acknowledges that in order to receive Further
Benefits (as defined in the Lease), Tenant is planning to sublease the
Premises to The Industrial Development Agency of the City of New
York (the "XXX") and the XXX will then sub-sublease the Premises to
Tenant. Tenant covenants that (i) the sublease to the XXX will not give
the XXX any right to occupy the Premises at any time, (ii) Tenant shall
at all times comply with the public liability and plate glass insurance
required under Paragraph 18(c) of the Declaration, and (iii) in the event
that the Lease or the sub-sublease by the XXX to Tenant terminates or
expires, the sublease by Tenant to the XXX shall also immediately
terminate or expire.
(b) Before entering into the sublease or sub-sublease transaction
described above, Tenant will obtain the consent of the Board, which
consent shall not be unreasonably withheld or delayed. Provided that
such consent is given, (i) the Board agrees to deliver evidence of its
consent to such sublease and sub-sublease in the form required by the
XXX and reasonably satisfactory to the Board and Tenant and (ii) the
Board shall waive (A) the applicability of clauses (1) and (5) of
Paragraph 18(b), (B) the requirement regarding the language
contained in Section 16.03 of the Ground Lease set forth in Paragraph
18(c), and (C) the public liability and plate glass insurance required
under Paragraph 18(c), of the Declaration to such sublease by Tenant
to the XXX.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their respective duly authorized
representatives as of the day and year first above written.
THE BOARD OF MANAGERS OF THE 125 BROAD
CONDOMINIUM
By:______________________________________________
Name:____________________________________________
Title:_____________________________________________
By:______________________________________________
Name:____________________________________________
Title:_____________________________________________
TENANT: XXXXXXXXXX & CO., INC., a New York
corporation
By:______________________________________________
Name:____________________________________________
Title:_____________________________________________
LANDLORD: NY BROAD HOLDINGS, INC., a Delaware
corporation
By:______________________________________________
Name:____________________________________________
Title:_____________________________________________
STATE OF NEW YORK )
) ss.:
COUNTY OF NEW YORK )
On the __ day of _____________, before me personally came
_________________, to me known, who, being by me duly sworn, did
depose and say he resides at ___________________; that he is the
____________ of the Board of Managers of The 125 Broad
Condominium, the entity described in and which executed the
foregoing instrument; and that he signed his name thereto by order of
the Board of Managers of The 125 Broad Condominium.
_________________________
Notary Public
STATE OF NEW YORK )
) ss.:
COUNTY OF NEW YORK )
On the ____ day of ______________, before me personally came
________________, to me known, who, being by me duly sworn, did
depose and say that he resides at __________________________; that
he is the _____________ of XXXXXXXXXX & CO., INC., the
corporation described in and which executed the foregoing instrument;
and that he signed his name thereto by order of the board of directors
of said corporation.
______________________
Notary Public
STATE OF NEW YORK )
) ss.:
COUNTY OF NEW YORK )
On the ______ day of ________________, before me personally came
______________, to me known to be the individual who executed the
foregoing instrument, and who, being by me duly sworn, did depose
and say that he resides at ____________________; that he is the
_________ of NY BROAD HOLDINGS, INC., the corporation
described in and which executed the foregoing instrument; and that he
signed his name thereto by order of the board of directors of said
corporation.
______________________
Notary Public
EXHIBIT L
Form of Estoppel Certificate
[Addressee]
___________________
___________________
Gentlemen:
Xxxxxxxxxx & Co. Inc., as "Tenant", and NY Broad Holdings, Inc., as
"Landlord", entered into an office space lease dated as of
____________, 1997, ("Lease"), in which Landlord leased to Tenant,
and Tenant hired from Landlord, certain premises located in the City of
New York, New York and described in said Lease as the "Premises".
Tenant is executing and delivering this certificate with the
understanding that either a potential buyer or lessee is contemplating
acquiring or leasing all or part of the Unit (as defined in the Lease) or a
potential lender is contemplating providing financing secured by the
Unit, and that such buyer, lessee or lender, or some other party taking
action based in part upon this certificate, will be entering into such
transaction in material reliance on this certificate. In furtherance of the
foregoing, the undersigned hereby certifies and agrees as follows:
1. The Lease is in full force and effect and has not been amended,
modified, supplemented or assigned by Tenant except by written
agreement(s) dated ______________, 19__, and such agreement(s) are
in full force and effect. The Lease [as modified] represents the entire
agreement between Landlord and Tenant.
2. Tenant's current address for receipt of notices under the Lease
is:
________________________________________________________
_____________________________.
3. Tenant has not received any concession (rental or otherwise) in
connection with leasing the Premises except as follows:
_________________________________________________
________________________________________________________
_________. All of the foregoing concessions have been fully satisfied
by Landlord except as follows: ____________.
4. Construction of all tenant improvements required under the
Lease has been satisfactorily completed, and Tenant has accepted the
Premises and presently occupies them, and is paying rent on a current
basis, except as follows: _________________. Tenant presently
occupies all of the Premises and no person (other than Tenant) is
subletting or occupying any part of the Premises except as follows:
_____________.
5. Base Rent (as defined in the Lease) in the amount of
$________________ was payable commencing on _____________,
19__. Base Rent has been paid through ___________________, and
no Base Rent has been paid by Tenant in advance under the Lease
except as follows: ___________________________.
6. The amount of Tenant's Tax Payment (as defined in the Lease)
currently payable by Tenant is $_________ per year (payable in semi-
annual installments), and the amount of Tenant's Operating Payment
(as defined in the Lease) currently payable by Tenant is $_________
per month; Tenant has paid such amounts up to and including the
Tenant's Tax Payment due on __________, 19__ and the Tenant's
Operating Payment due on __________, 19__. A security deposit in
the amount of $_______________ was deposited with Landlord upon
execution of the Lease.
7. Tenant has no claim against Landlord for any security deposit,
prepaid fee or charge or prepaid rent except as disclosed in Paragraph
5 or 6 of this certificate.
8. As of the date of this certificate, Tenant has not received any
notice of default with respect to the performance of any of its
covenants, agreements and obligations under the Lease, or of any
breach of the Lease.
9. As of the date of this certificate, to the best of Tenant's
knowledge, Landlord is not in default in the performance of any of its
covenants, agreements and obligations under the Lease and has not
committed any breach of the Lease, except as follows: _________. As
of the date of this certificate, no notice of default has been given to
Landlord and Tenant has not asserted any setoffs, claims or defenses to
the enforcement of the Lease, except as follows:
10. To the best of Tenant's knowledge, there are no pending suits,
proceedings, judgments, bankruptcies, liens or executions against
Tenant or any affiliate of Tenant which could affect Tenant's ability to
perform its obligations under the Lease.
11. Tenant does not have any rights or options to purchase all or
any part of the Building (as defined in the Lease).
12. Tenant does not have any rights or options to renew the Lease
or to lease additional space in the Building except as follows:
___________________________________________
________________________________________________________
___________________.
13. From and after the date hereof, Tenant will not pay any rent
under the Lease more than one month in advance of its due date.
This certificate is hereby executed and effective as of the date first
above written by a duly authorized officer or partner of Tenant.
XXXXXXXXXX & CO. INC., as Tenant
By:______________________________
Its:______________________________
EXHIBIT M
The Rentable Area of each floor of the Unit is as follows:
Unit C
Floor Square Footage
12th Floor 33,825
13th Floor 33,743
14th Floor 33,948
15th Floor 34,504
16th Floor 34,504
19th Floor 34,504
205,028
Method for Measurement
of Rentable Area
for Single Tenant Floor
The Rentable Area of any floor of the Unit occupied by a single tenant
shall be determined as follows:
1. Measure the floor to the outside surface of exterior walls, or to
the outside surface of the glass, as the case may be. Subtract from this
area the following areas:
(a) Public elevator shafts and elevator machines and their enclosing
walls;
(b) Public stairs and their enclosing walls;
(c) Heating, ventilating and air conditioning facilities (including
pipes, ducts and shafts), and their enclosing walls, unless such
equipment, mechanical room space, or shafts serve such floor;
(d) Fire towers and fire tower courts and their enclosing walls;
(e) Main telephone equipment rooms and main electric switchgear
rooms, and their enclosing walls, except for telephone equipment and
electric switchgear rooms exclusively serving the Premises.
2. The Rentable Area of such floor shall be equal to the product
of the net useable area determined above and 125%.
Method for Measurement
of Rentable Area
for Multi-Tenant Floor
The Rentable Area of any space ("Space") leased or held for lease on a
floor of the Unit, the entire leasable space on which floor is not leased
to a single tenant shall be determined as follows:
1. Determine, separately for each Space on such floor, the area
enclosed by the enclosing walls of such Space by measuring with
respect to each enclosing wall (i) which is an exterior wall of the
Building, to the inside surface of the exterior wall, or to the inside
surface of the glass, as the case may be, and (ii) which is a demising
wall of the Space, to the center line thereof, and (iii) which is a wall
abutting a corridor, to the corridor side of the finished surface thereof.
2. Determine the Corridor Area of such floor. The term
"Corridor Area" shall include bathrooms, toilets, supply rooms, etc.
The Building Core shall be excluded from the term "Corridor Area".
The term "Building Core" shall mean (i) public elevator shafts and
elevator machines and their enclosing walls; (ii) public stairs and their
enclosing walls; (iii) heating, ventilation, and air-conditioning facilities
(including pipes, ducts and shafts), and their enclosing walls (other than
equipment, mechanical room space or shafts serving such floor which
shall be included in the corridor area); (iv) fire towers and fire tower
courts and their enclosing walls; and (v) main telephone equipment
rooms and main electric switchgear rooms, and their enclosing walls
(other than telephone equipment and electric switchgear rooms
exclusively serving such floor which shall be included in the corridor
area).
3. Add (i) the area of such Space determined pursuant to
paragraph 1. above, to (ii) the product of the Corridor Area determined
pursuant to paragraph 2. above multiplied by a fraction, the numerator
of which is the area of such Space determined pursuant paragraph 1.
above and the denominator of which is the sum, for all Spaces on such
floor, of the area determined pursuant to paragraph 1. above.
4. The Rentable Area of such Space shall be equal to the product
of (i) the result obtained under paragraph 3 above with respect to such
Space and (ii) 125%.
EXHIBIT N
ADDITIONAL REPRESENTATIONS
1. Landlord represents to Tenant that, as of the date hereof and as of
the Commencement Date, to the best of its knowledge, without
undertaking any independent investigation, no document, agreement,
or instrument (other than this Lease) restricts in any material manner
Tenant's rights under the Lease including Tenant's use and occupancy
of the Premises, other than as listed below:
a. Ground Lease;
b. Condominium Documents;
c. Any lien, claim or encumbrance disclosed in the Title Report
(as hereinafter defined);
d. Any license or permit relating to the Building or the Unit; and
e. Certificate of Occupancy.
2. Landlord represents to Tenant that, to the best of its knowledge,
without undertaking any independent investigation, Landlord has
delivered to Tenant true and complete copies of the following:
a. Ground Lease;
b. Condominium Documents;
c. Operating Expense bills for the Unit;
d. Real Estate tax bills for the Unit; and
e. Title Report of Title Associates Inc. number TA #96(01)761,
dated November 4, 1996, covering the Unit (the "Title Report").
3. Landlord represents and warrants to Tenant that, as of the date
hereof and as of the Commencement Date, (a) the Unit (including the
Premises) is not subject to any outstanding mortgage liens and (b) to
the best of Landlord's knowledge, without undertaking any
independent investigation, the Premises is not subject to any other liens,
claims or encumbrances not described in the Title Report which affect
Tenant's occupancy of the Premises.
EXHIBIT O
Form of
Direction of Payment Letter
Date:_________
NY Broad Holdings, Inc.
c/o Canadian Imperial Bank
of Commerce
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxx X. Xxxxxx
Re: Office Space Lease dated _________, 1997 (the "Lease")
between NY Broad Holdings, Inc.("Landlord") and Xxxxxxxxxx & Co.
Inc., ("Tenant")
Gentlemen:
Pursuant to Paragraph 6.2 of Exhibit D to the Lease, Tenant hereby
authorizes and directs Landlord to pay the invoices attached to this
letter within 30 days of the date hereof. The total amount of invoices
for which payment is directed by this letter is $___________. Please
debit the Allowance under the Lease for this amount.
If you have any questions regarding this letter, please contact
_________________ at (212)_________.
Very truly yours,
XXXXXXXXXX & CO. INC.
By:________________________
Title:______________________
EXHIBIT P
PARKING PLAN
Tenant shall be entitled to use parking space numbers 41 and 42 as set
forth on the attached parking plan, subject to the terms and conditions
of this Lease.
EXHIBIT Q
[Attach list of approved Contractors and Subcontractors]
EXHIBIT R
MEMORANDUM OF LEASE
THIS MEMORANDUM OF LEASE dated as of ___, 1997 by and
between NY BROAD HOLDINGS, INC., a New York corporation
with its office at c/o Canadian Imperial Bank of Commerce, 000
Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx ("Landlord") and
XXXXXXXXXX & CO. Inc., a New York corporation having an office
at _______, New York, New York ("Tenant").
W I T N E S S E T H:
WHEREAS, Landlord and Tenant have entered into a lease dated as of
_________, 1997 (the "Lease") wherein Landlord has let and demised
to Tenant the entire rentable portions of the 15th and 16th floors and a
portion of the sub-basement space in the Building (the "Building")
located on the parcel of land described in Exhibit A annexed hereto,
and known by the address of 000 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx
(the "Premises");
NOW, THEREFORE, this Memorandum of Lease is to be recorded in
order that third parties may have notice of the existence of the Lease.
1. The Lease is for an initial term of approximately sixteen (16)
years commencing on the date hereof and shall expire on September
30, 2013, unless extended in accordance with the Lease, or such earlier
date upon which the Lease may expire or be terminated pursuant to the
Lease or Law.
2. Tenant has an option to renew the term of the Lease for one
(1) additional period of five (5) years.
3. Pursuant to the terms of the Lease, Tenant has the right to
lease certain additional space in the Building pursuant to two separate
expansion options for space located on the fourteenth (14th) floor of
the Building (which, if both options are exercised, shall constitute the
entire 14th floor).
4. The subordination of the Lease to ground, overriding and/or
underlying leases affecting the Building hereinafter entered into and to
any mortgages affecting the Unit shall be subject to the provisions of
Article XIII of the Lease.
IN WITNESS WHEREOF, Landlord and Tenant have duly executed
and delivered this Memorandum of Lease as of the day and year first
above written.
NY BROAD HOLDINGS, INC.
By:___________________________
XXXXXXXXXX & CO. INC.
By:___________________________
Title:
AFFIDAVIT
STATE OF NEW YORK )
)SS.:
COUNTY OF NEW YORK )
The undersigned makes this affidavit in support of the annexed Real
Property Transfer Gains Tax Affidavit - Real Estate Transfer Tax
Return (TP-584) and states as follows:
1. The lease dated as of _______, 1997 (the "Lease") from NY
Broad Holdings, Inc. ("Landlord") to Xxxxxxxxxx & Co. Inc.,
("Tenant") of real property located at Unit "C" at 000 Xxxxx Xxxxxx,
Xxx Xxxx, Xxx Xxxx (the "Property") is for a term of less than 49
years.
2. The Lease does not contain an option to purchase the Property
or any part thereof.
Accordingly, the conveyance is not a transfer of real property within
the meaning of Subdivision 7 of Section 1440 of Article 31-B of the
Tax Law or within the meaning of Section 1401 of Article 31 of the
Tax Law and is therefore not subject to the real estate transfer tax.
IN WITNESS WHEREOF, the undersigned has executed this
Affidavit as of ________, 1997.
______________________________
Name:
Title:
Sworn to before me this
__ day of ______, 1997.
________________________
Notary Public
EXHIBIT A
TO EXHIBIT R
[Legal Description]
EXHIBIT S
TERMINATION OF MEMORANDUM OF LEASE
THIS TERMINATION OF MEMORANDUM OF LEASE (this
"Termination"), dated as of _________________ between NY
BROAD HOLDINGS, INC., a New York corporation (together with
its successors and assigns, "Landlord") and XXXXXXXXXX & CO.
INC., a New York corporation (together with its permitted successors
and assigns, "Tenant").
W I T N E S S E T H:
WHEREAS, Landlord and Tenant have entered into that certain
Agreement of Lease, dated as of ________ __, 1997 (as the same may
have been amended or modified from time to time, the "Lease"), a
memorandum of which was recorded in the Office of the Register,
New York County, New York (the "Register's Office"), in Reel _____,
Page ___ (the "Memorandum"), which Lease and Memorandum
thereof affects certain real property located in the City, County and
State of New York, commonly known as the 000 Xxxxx Condominium
located at 000 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx; and
WHEREAS, the Expiration Date (as such term is defined under the
Lease) has occurred, the parties hereto desire to record this
Termination in the Register's Office;
NOW, THEREFORE, this Termination of Memorandum of Lease is to
be recorded in order that third parties may have notice of the expiration
and/or termination of the Lease.
1. The recitals described above are incorporated herein by
reference as if fully set forth herein.
2. The Lease is terminated and/or expired and of no further force
and effect, except
for such terms and provisions which by their express terms survive
expiration or early termination of the Lease.
IN WITNESS WHEREOF, Landlord and Tenant have duly executed
and delivered this Termination of Memorandum of Lease as of the day
and year first above written
NY BROAD HOLDINGS, INC.
By:________________________
Title:
XXXXXXXXXX & CO. INC.
By:___________________________
Title:
STATE OF NEW YORK )
) ss.:
COUNTY OF NEW YORK )
On the ____ day of ______________, before me personally came
________________, to me known, who, being by me duly sworn, did
depose and say that he resides at __________________________; that
he is the _____________ of ___________________, the corporation
described in and which executed the foregoing instrument; and that he
signed his name thereto by order of the board of directors of said
corporation.
________________________
Notary Public
STATE OF NEW YORK )
) ss.:
COUNTY OF NEW YORK )
On the ______ day of ________________, before me personally came
______________, to me known to be the individual who executed the
foregoing instrument, and who, being by me duly sworn, did depose
and say that he resides at ____________________; that he is the
_________ of ___________ the corporation described in and which
executed the foregoing instrument; and that he signed his name thereto
by order of the board of directors of said corporation.
________________________
Notary Public
EXHIBIT A
TO EXHIBIT S
[Legal Description]
EXHIBIT T
ESCROW AGREEMENT
ESCROW AGREEMENT (this "Agreement"), made as of the ___ day
of ________, 1997 by and among NY BROAD HOLDINGS, INC., a
New York corporation with its office at c/o Canadian Imperial Bank of
Commerce, 000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000
("Landlord"), XXXXXXXXXX & CO. INC., a New York corporation
having an office at 000 Xxxx Xxxxxx, Xxx Xxxx, XX 00000 ("Tenant"),
and SIDLEY & AUSTIN, having an office at 000 Xxxxx Xxxxxx, Xxx
Xxxx, Xxx Xxxx 00000, Attention: Xxxx X. Xxxx, Esq. ("Escrow
Agent").
W I T N E S S E T H:
WHEREAS,
A. Landlord and Tenant have entered into that certain Agreement
of Lease dated as of the date hereof (the "Lease") pursuant to which
Landlord agreed to lease to Tenant and Tenant agreed to rent from
Landlord certain space in the building known as 000 Xxxxx Xxxxxx,
Xxx Xxxx, Xxx Xxxx;
B. Landlord and Tenant have entered into a certain Memorandum
of Lease (the "Memo of Lease"); and
C. Six (6) originals of the Termination of Memorandum of Lease
have been fully executed by Landlord and Tenant, and Landlord and
Tenant desire to have all such agreements (collectively, the
"Documents") held in escrow in the manner hereinafter set forth.
NOW, THEREFORE, in consideration of the mutual agreements
hereinafter set forth and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:
1. Certain capitalized terms used herein but not otherwise defined
herein are defined by reference to the Lease.
2. Escrow Agent is in possession of the Documents.
3. No later than ten (10) Business Days following the Expiration
Date of the Lease, Landlord shall provide Escrow Agent with written
notice with a copy to Tenant (the "Termination of Escrow Notice"),
which notice shall certify that the Expiration Date has occurred and
shall set forth such Expiration Date, instruct Escrow Agent to release
the Documents from escrow and record one (1) original executed copy
of the Termination of Memorandum of Lease in the Register's Office
three (3) Business Days after Landlord has provided Tenant with the
Termination of Escrow Notice. Tenant hereby irrevocably authorizes
Landlord to send the Termination of Escrow Notice at any time on or
after the Expiration Date so long as Landlord provides Tenant with
copy of such Notice at three (3) Business Days before the Escrow
Agent releases the Documents. Escrow Agent shall be entitled to rely
upon the Termination of Escrow Notice without limitation.
4. All communications and notices, including, without limitation,
the Termination of Escrow Notice (collectively, "Notices") to the
parties hereto shall be addressed to the party sought to be notified at
the address set forth in the Lease (and in the case of Escrow Agent, as
set forth above) for such party, or to such other address as such party,
or its attorney, shall have designated by notice given to the other
parties in accordance with the provisions of the Lease. Any Notices
which may be given or are required to be given in connection herewith
shall be in writing, and shall be delivered personally, and shall be
deemed to have been duly given as of the time received or refused by
the addressee. Notices may be given by an attorney for a party hereto
on behalf of the party represented by such attorney.
5. In the event any disagreement or dispute shall arise between or
among any of the parties hereto and/or any other persons resulting in
adverse claims and demands being made for the Documents, then, at
Escrow Agent's option (a) Escrow Agent may refuse to comply with
any claims or demands on it and continue to hold the Documents until
(i) Escrow Agent receives written notice signed by all parties hereto
and any other person who may have asserted a claim to or made a
demand for the Documents, in which event Escrow Agent shall then
deliver the Documents in accordance with said direction, or (ii) Escrow
Agent receives a certified copy of a final and non-appealable judgment
of a court of competent jurisdiction directing the delivery of the
Documents, in which event Escrow Agent shall then deliver the
Documents, in which event Escrow Agent shall then deliver the
Documents in accordance with said direction; or (b) in the event
Escrow Agent shall receive a written notice advising that a litigation
over entitlement to the Documents has been commenced, Escrow
Agent may deposit the Documents with the Clerk of the Court in
which said litigation is pending; or (c) Escrow Agent may take such
affirmative steps as it may elect to substitute another impartial party
reasonably satisfactory to the other parties hereto, whose consents shall
not be unreasonably withheld, to hold the Documents including,
without limitation, the delivery of the Documents to a court of
competent jurisdiction and the commencement of an action for
interpleader, the costs thereof to be borne by the losing party.
6. Escrow Agent shall not be or become liable in any way or to
any person for its refusal to comply with adverse claims and demands
being made for the Documents. Escrow Agent shall not be responsible
for any act or failure to act on its part nor shall it have any liability
under this Agreement or in connection herewith except in the case of
its own willful default or gross negligence. This Agreement shall
terminate and Escrow Agent shall be automatically released from all
responsibility and liability hereunder upon Escrow Agent's delivery or
deposit of the Documents in accordance with the provisions of this
Agreement.
7. It is expressly understood that Escrow Agent acts hereunder as
an accommodation to Landlord and Tenant and as a depository only
and is not responsible or liable in any manner whatsoever for the
sufficiency, correctness, genuineness or validity of any instruments or
other property received by or deposited with it, or for the form of
execution of such instruments, or for the identity, authority or right to
any person executing or depositing the same, or for the terms and
conditions of any instrument pursuant to which Escrow Agent or any
other party may act.
8. The duties of Escrow Agent are purely ministerial. Escrow
Agent shall not have any duties or responsibilities except those set forth
in this Agreement and shall not incur any liability in acting upon any
signature, notice, request, waiver, consent, receipt or other paper or
document believed by Escrow Agent to be genuine, and Escrow Agent
may assume that any person purporting to have given it any notice on
behalf of any party in accordance with the provisions hereof has been
duly authorized to do so.
9. Landlord and Tenant hereby jointly and severally agree to
indemnify and save Escrow Agent harmless from any and all loss,
damage, claim, liability, judgment and other cost and expense of every
kind and nature which may be incurred by Escrow Agent by reason of
its acceptance of, and its performance under, this Agreement
(including, without limitation, attorneys' fees) except in the case of
Escrow Agent's own willful default or gross negligence.
10. This Agreement and the provisions hereof may not be changed,
waived, discharged or terminated orally, but only by an instrument in
writing, signed by Landlord and Tenant. Any modification of this
Agreement which expands the scope of Escrow Agent's responsibilities
or liabilities hereunder shall not be binding upon Escrow Agent without
its prior written consent.
11. This Agreement and all matters relating hereto shall be
governed by, construed and interpreted in accordance with the laws of
the State of New York.
12. This agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective heirs, personal
representatives, successors and assigns.
13. Whether or not any litigation shall be commenced by Tenant
against Landlord, Tenant hereby agrees that Escrow Agent may serve
as attorney for Landlord.
IN WITNESS WHEREOF, the parties have executed this Agreement
the day and year first above written.
NY BROAD HOLDINGS, INC.
By:
Name:
Title:
XXXXXXXXXX & CO. INC.
By:
Name:
Title:
SIDLEY & AUSTIN
By:
Name:
A Partner
EXHIBIT U
DESCRIPTION OF STORAGE SPACE
The Storage Space is to be located on level C-3 of the Building.
EXHIBIT V
[Attach Lease Escrow Agreement]
EXHIBIT W
LIMITED GUARANTEE OF PAYMENT
LIMITED GUARANTEE OF PAYMENT, dated as of ___________
__, 1997, between CANADIAN IMPERIAL BANK OF
COMMERCE (together with its successors and assigns, "Guarantor")
and XXXXXXXXXX & CO. INC. (together with its successors and
permitted assigns, "Tenant").
W I T N E S S E T H:
WHEREAS, NY Broad Holdings, Inc. ("Landlord") and Tenant are
entering into that certain Lease (as the same may be modified, amended
or supplemented from time to time, the "Lease"), dated as of the date
hereof, with respect to certain premises located in Unit C of The 000
Xxxxx Xxxxxxxxxxx, Xxx Xxxx, Xxx Xxxx;
WHEREAS, Paragraph 6.3 of Exhibit D of the Lease obligates
Landlord to pay to Tenant the Allowance (or to provide a Rent credit
in the amount of the Adjusted Unused Work Allowance) (as such
terms are defined by reference to the Lease), subject to the terms and
conditions contained in the Lease;
WHEREAS, Tenant is a wholly-owned subsidiary of the Guarantor,
and Guarantor shall derive substantial benefit from the consummation
of the transactions contemplated by the Lease; and
WHEREAS, in order to induce Tenant to enter into the Lease,
Guarantor is willing to unconditionally guarantee certain obligations of
Landlord under the Lease, subject to the terms and conditions
contained herein;
NOW, THEREFORE, the parties hereto agree as follows:
ARTICLE I
GUARANTEE
SECTION 1.01. Definitions. Certain capitalized terms used herein
and not otherwise defined shall have the meanings ascribed to them in
the Lease.
SECTION 1.02. Limited Guarantee. Guarantor hereby
unconditionally guarantees the full and punctual payment of all
amounts due and payable by Landlord to Tenant under Paragraph 6.3
of Exhibit D to the Lease; provided that in no event shall the amount
guaranteed under this Section 1.02 exceed the Allowance. Upon the
failure by Landlord to pay punctually any such amount (or to credit the
Adjusted Unused Work Allowance in accordance with Paragraph 6.3
of Exhibit D), Guarantor shall forthwith on written demand pay the
amount not so paid (or credited, as the case may be) at the place and in
the manner specified in such demand letter.
SECTION 1.03. Guarantee Unconditional. The obligations of
Guarantor hereunder shall be unconditional and absolute and, without
limiting the generality of the foregoing, shall not be released,
discharged or otherwise affected by:
(i) any extension, renewal, settlement, compromise, waiver or
release in respect of any obligation of Landlord under the Lease by
operation of law or otherwise;
(ii) any modification or amendment of or supplement to the Lease;
and
(iii) any change in the corporate existence, structure or ownership
of Landlord or any insolvency, bankruptcy, reorganization or other
similar proceeding affecting Landlord or its assets or any resulting
release or discharge of any obligation of Landlord contained in the
Lease.
SECTION 1.04. Discharge Only Upon Payment In Full; Reinstatement
In Certain Circumstances. The Guarantor's obligations hereunder shall
remain in full force and effect until the payment in full by Landlord of
all amounts due and payable, if any, to Tenant under Paragraph 6.3 of
Exhibit D to the Lease, but in no event greater than the Guaranteed
Amount. Notwithstanding the foregoing, if at any time any payment
due and payable by Landlord under Paragraph 6.3 of Exhibit D of the
Lease is rescinded or must be otherwise restored or returned upon the
insolvency, bankruptcy or reorganization of Landlord or otherwise,
Guarantor's obligations hereunder with respect to such payment shall
be reinstated as though such payment had been due but not made at
such time.
SECTION 1.05. Waiver by Guarantor. Guarantor irrevocably waives
acceptance hereof, presentment, demand, protest and any notice not
provided for herein, as well as any requirement that at any time any
action be taken by any corporation or person against Landlord or any
other corporation or person.
SECTION 1.06. Waiver of Subrogation. Guarantor expressly and
irrevocably waives any right to be subrogated to the rights of the payee
against Landlord with respect to any payment made by Guarantor
hereunder.
SECTION 1.07. Stay of Payment. If payment of any amount by
Landlord under Paragraph 6.3 of Exhibit D is stayed upon the
insolvency, bankruptcy or reorganization of Landlord, all such amounts
otherwise payable or subject to credit under such paragraph shall
nonetheless be payable by Guarantor hereunder forthwith on demand
by Tenant.
ARTICLE II
MISCELLANEOUS
SECTION 2.01. Notices. All notices, requests and other
communications to any party hereunder shall be in writing and shall be
given to such party at its address set forth below in accordance with the
notice provisions of the Sublease.
If to Guarantor:
Canadian Imperial Bank of Commerce
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, X.X. 00000
Attention: Xxxx Xxxxxx, Vice President
Re: The 000 Xxxxx Xxxxxx Condominium
with copies to:
Sidley & Austin
000 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxx X. Xxxx, Esq.
SECTION 2.02. No Waivers. No failure or delay by Tenant in
exercising any right, power or privilege hereunder or under the Lease
shall operate as a waiver thereof nor shall any single or partial exercise
thereof preclude any other or further exercise thereof or the exercise of
any other right, power or privilege. The rights and remedies herein
provided shall be cumulative and not exclusive of any rights or
remedies provided by law.
SECTION 2.03. Amendments and Waivers. Any provision of this
Agreement may be amended or waived if, but only if, such amendment
or waiver is in writing and is signed by each of Guarantor and Tenant.
SECTION 2.04. Governing Law; Submission to Jurisdiction; Waiver
of Jury Trial. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York. Guarantor and
Tenant hereby submit to the nonexclusive jurisdiction of the United
States District Court for the Southern District of New York and of any
New York State Court sitting in New York City for purposes of all
legal proceedings arising out of or relating to this Agreement.
Guarantor and Tenant irrevocably waive, to the fullest extent permitted
by law, any objection which it may now or hereafter have to the laying
of the venue of any such proceeding brought in such a court and any
claim that any such proceeding brought in such a court has been
brought in an inconvenient forum. Guarantor and Tenant each hereby
irrevocably waive any and all right to trial by jury in any legal
proceeding arising out of or relating to this Agreement.
SECTION 2.05. Counterparts; Integration. This Agreement may be
signed in any number of counterparts, each of which shall be an
original, with the same effect as if the signatures thereto and hereto
were upon the same instrument. This Agreement constitutes the entire
agreement and understanding among the parties hereto and supersedes
any and all prior agreements and understandings, oral or written,
relating to the subject matter hereof.
SECTION 2.06. Successors and Assigns. The covenants, agreements,
terms and conditions contained in this Guaranty shall bind and inure to
the benefit of the parties hereto and their respective successors and
permitted assigns; it being understood and agreed that Tenant may only
assign the benefits under this Guarantee to a permitted assignee of
Tenant's interest under the Sublease in accordance with the terms and
provisions of the Sublease.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed by their respective authorized officers
as of the day and year first above written.
CANADIAN IMPERIAL BANK OF COMMERCE
By:
Title:
XXXXXXXXXX & CO. INC.
By:
Title:
EXHIBIT X
NY Broad Holdings, Inc.
c/o Canadian Imperial Bank of Commerce
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxx X. Xxxxxx
As of ___________ __, 1997
By Hand
To the Addressees
listed on Schedule I
Re: Office Space Lease dated as of ______ __, 1997 (the "Lease")
between NY Broad Holdings, Inc. ("Landlord") and
Xxxxxxxxxx & Co. Inc. ("Tenant")
Gentlemen:
Reference is hereby made to that certain Declaration of Condominium
(the "Declaration") dated December 23, 1994, recorded in the Office of
Register of The City of New York in New York County (the
"Register's Office") on January 10, 1995, in Reel 2171 at Page 1959, as
amended by that certain First Amendment to Declaration dated as of
March 28, 1995, recorded in the Register's Office on April 6, 1995, in
Reel 2197 at Page 1306 and by that certain Second Amendment to
Declaration dated as of December __, 1996, recorded in the Register's
Office on February 6, 1997, in Reel 2025 at Page 2419, and as the
same may be further amended, restated, supplemented or otherwise
modified from time to time.
Pursuant to Paragraph 33 of the Declaration, copies of any notices,
demands, reports and other information with respect to the Building
and the Unit to be delivered to NY Broad Holdings, Inc. (including its
successors and assigns) under the Declaration should also be sent as
follows:
Xxxxxxxxxx & Co. Inc.
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Xxxxxx X. Xxxxxxxxx
with a copy to:
Xxxxxxx Breed Xxxxxx & Xxxxxx
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Richard Crystal, Esq.
; provided that, once Xxxxxxxxxx & Co. Inc. gives you notice that it has
occupied its Premises in the Building, any notices, demands, reports
and other information sent to Xxxxxxxxxx & Co. Inc. shall be sent to
them at the Premises.
Very truly yours,
NY BROAD HOLDINGS, INC.
By:__________________________
Title:
Schedule I
Board of Managers
The 000 Xxxxx Condominium
000 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx
Board of Managers
The 125 Broad Condominium
c/o The Xxxxxxxxx Company, L.P.
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxxx Xxxxx
Xxx Xxxxx, Esq.
Xxxxxxxx & Xxxxxxxx
000 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx
Mr. Xxxxx Xxxxxxx
Xxxxxxx & Xxxxxxx
000 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx
TABLE OF CONTENTS
Page
ARTICLE I BASIC LEASE PROVISIONS 1
ARTICLE II PREMISES AND TERM 3
ARTICLE III RENTS 4
ARTICLE IV TAX AND OPERATING EXPENSE
ADJUSTMENTS 6
ARTICLE V USE AND COMPLIANCE WITH LAW 16
ARTICLE VI SERVICES AND UTILITIES 18
ARTICLE VII INSURANCE AND INDEMNIFICATION 23
ARTICLE VIII ALTERATIONS, REPAIRS AND MAINTENANCE
24
ARTICLE IX DAMAGE OR DESTRUCTION 26
ARTICLE X EMINENT DOMAIN 32
ARTICLE XI SURRENDER OF PREMISES 33
ARTICLE XII EXCULPATION AND CERTAIN LANDLORD
RIGHTS 35
ARTICLE XIII SUBORDINATION; ESTOPPEL CERTIFICATES
38
ARTICLE XIV ASSIGNMENTS AND SUBLEASES 40
ARTICLE XV CONDITIONAL LIMITATIONS 48
ARTICLE XVI MISCELLANEOUS 54
ARTICLE XVII RENEWAL OPTION 66
ARTICLE XVIII FIRST EXPANSION OPTION 69
ARTICLE XIX SECOND EXPANSION OPTION 77
ARTICLE XX TENANT TERMINATION OPTION 86
ARTICLE XXI PARKING 87
ARTICLE XXII THE LOWER MANHATTAN PLAN 88
ARTICLE XXIII STORAGE SPACE 93
ARTICLE XXIV NET WORTH OF TENANT 95
EXHIBITS
EXHIBIT A - Floor Plan
EXHIBIT B - Definitions
EXHIBIT C - Electrical Capacity
EXHIBIT D - Work Letter
EXHIBIT E - Building Standards for Alterations
EXHIBIT F - Building Rules and Regulations
EXHIBIT G - Cleaning Specifications
EXHIBIT H - Additional Heating and Air Conditioning Rates
EXHIBIT I - Insurance Requirements
EXHIBIT J - Alteration Requirements
EXHIBIT K - Form of Subordination, Nondisturbance and
Attornment Agreement with Board of Managers
EXHIBIT L - Form of Estoppel Certificate
EXHIBIT M - Method for Measurement of Rentable Area
EXHIBIT N - Additional Representations
EXHIBIT O - Form of Direction of Payment Letter
EXHIBIT P - Parking Plan
EXHIBIT Q - List of Approved Contractors, Subcontractors
EXHIBIT R - Memorandum of Lease
EXHIBIT S - Termination of Memorandum of Lease
EXHIBIT T - Escrow Agreement
EXHIBIT U - Description of Storage Space
EXHIBIT V - Lease Escrow Agreement
EXHIBIT W - Limited Guaranty of Landlord Allowance
EXHIBIT X - Notice Letter
THIS PAGE MUST BE KEPT AS THE LAST PAGE OF
THE DOCUMENT.
