New York-New York-420 Lexington Avenue Agreement of Lease - SLC Graybar Sublease LLC and Medix Resources Inc.
AGREEMENT OF LEASE
between
SLG Graybar Sublease LLC
Landlord
and
Medix Resources, Inc.
Tenant
Dated as of January 17, 2002
Suite 1830-32
420 Lexington Avenue
New York, New York</B>
<PAGE>
<B>TABLE OF CONTENTS
-----------------
TABLE OF CONTENTS
ARTICLE 1 DEMISE; PREMISES AND PURPOSE
ARTICLE 2 TERM
ARTICLE 3 RENT AND ADDITIONAL RENT
ARTICLE 4 ASSIGNMENT/SUBLETTING
ARTICLE 5 DEFAULT
ARTICLE 6 RELETTING, ETC
ARTICLE 7 LANDLORD MAY CURE DEFAULTS
ARTICLE 8 ALTERATIONS
ARTICLE 9 LIENS
ARTICLE 10 REPAIRS
ARTICLE 11 FIRE OR OTHER CASUALTY
ARTICLE 12 END OF TERM
ARTICLE 13 SUBORDINATION AND ESTOPPEL, ETC
ARTICLE 14 CONDEMNATION
ARTICLE 15 REQUIREMENTS OF LAW
ARTICLE 16 CERTIFICATE OF OCCUPANCY
ARTICLE 17 POSSESSION
ARTICLE 18 QUIET ENJOYMENT
ARTICLE 19 RIGHT OF ENTRY
ARTICLE 20 INDEMNITY
ARTICLE 21 LANDLORD'S LIABILITY, ETC
ARTICLE 22 CONDITION OF PREMISES
ARTICLE 23 CLEANING
ARTICLE 24 JURY WAIVER
ARTICLE 25 NO WAIVER, ETC
ARTICLE 26 OCCUPANCY AND USE BY TENANT
ARTICLE 27 NOTICES
ARTICLE 28 WATER
ARTICLE 29 SPRINKLER SYSTEM
ARTICLE 30 HEAT, ELEVATOR, ETC
ARTICLE 31 SECURITY DEPOSIT
ARTICLE 32 TAX ESCALATION
ARTICLE 33 RENT CONTROL
ARTICLE 34 SUPPLIES
ARTICLE 35 AIR CONDITIONING
ARTICLE 36 SHORING
ARTICLE 37 EFFECT OF CONVEYANCE, ETC
ARTICLE 38 RIGHTS OF SUCCESSORS AND ASSIGNS.
ARTICLE 39 CAPTIONS
ARTICLE 40 BROKERS
ARTICLE 41 ELECTRICITY
ARTICLE 42 LEASE SUBMISSION
ARTICLE 43 INSURANCE
ARTICLE 44 SIGNAGE
ARTICLE 45 RIGHT TO RELOCATE
ARTICLE 46 FUTURE CONDOMINIUM CONVERSION
ARTICLE 47 MISCELLANEOUS
ARTICLE 48 COMPLIANCE WITH LAW
ARTICLE 49 EXTENSION OPTION
ARTICLE 50 RULES AND REGULATIONS
INDEX OF DEFINED TERMS
TERM
Additional Rent
Alterations
Base Tax Year
Brokers
Building
Building Cleaning Contractor
Building Project
Commencement Date
Comparative Year
Cooling Season
Declaration
Delivery Personnel
Designated Agent
ERIF
excess electricity
Existing HVAC Equipment
Expiration Date
Extension Right
Extension Term
Extension Term Comm. Date
Fixed Annual Rent
FMRV
HVAC System
Independent Broker
Landlord's Electrical Consultant
Landlord's Relocation Work.
Landlord's Restoration Work
Landlord's Broker
Landlord's Broker's Letter
Lease
Leaseback Area
Midtown
Ordinary Business Hours
Ordinary Equipment
Premises
Real Estate Taxes
Recapture Date
Relocation Effective Date
Relocation Notice
Relocation Space
Rent
Security
Supplemental Systems
Tenant Cleaning Services
Tenant's Recapture Offer
Tenant's Share
Tenant's Broker
Tenant's Broker's Letter
Term</B>
<B>LEASE</B> (this "Lease") made as of the 17th day of January 2002
between SLG Graybar Sublease, LLC, a New York limited liability company
having an office c/o SL Green Realty Corp., at 420 Lexington Avenue, New
York, New York, 10170, hereinafter referred to as "Landlord", and Medix
Resources, Inc., a Colorado corporation having an office at 420 Lexington
Avenue, New York, New York, 10170, hereinafter referred to as "Tenant".
<B>W I T N E S S E T H
- - - - - - - - - -</B>
Landlord and Tenant, in consideration of the mutual agreements
herein contained and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, hereby covenant and agree as
follows:
<B>ARTICLE 1</B>
<B><U>DEMISE; PREMISES AND PURPOSE</U></B>
1.01 Landlord hereby leases and demises to Tenant, and Tenant
hereby hires and takes from Landlord, those certain Premises located on and
comprising a rentable portion of the eighteenth (18th) floor designated as
Room 1830-32, approximately as indicated by hatch marks on the plan annexed
hereto and made a part hereof as "Exhibit A" (the "Premises") in the building
known as and located at 420 Lexington Avenue, New York, New York (the
"Building") subject to the provisions of this Lease.
1.02 The Premises shall be used and occupied for executive and
general office use consistent with that found in Class "A" high-rise office
buildings located in midtown Manhattan only and for no other purpose.
1.03 Neither the Premises, nor the halls, corridors, stairways,
elevators or any other portion of the Building shall be used by the Tenant or
the Tenant's servants, employees, licensees, invitees or visitors in
connection with the aforesaid permitted use or otherwise so as to cause any
congestion of the public portions of the Building or the entranceways,
sidewalks or roadways adjoining the Building whether by trucking or by the
congregating or loitering thereon of the Tenant and/or the servants,
employees, licensees, invitees or visitors of the Tenant.
1.04 Tenant shall not permit messengers, delivery personnel or
other individuals providing such services to Tenant ("Delivery Personnel")
to: (i) assemble, congregate or to form a line outside of the Premises or the
Building or otherwise impede the flow of pedestrian traffic outside of the
Premises or Building or (ii) park or otherwise leave bicycles, wagons or
other delivery carts outside of the Premises or the Building except in
locations outside of the Building designated by Landlord from time-to-time.
Tenant shall require all Delivery Personnel to comply with rules promulgated
by Landlord from time-to-time regarding the use of outside messenger services.
<B>ARTICLE 2</B>
<B><U>TERM</U></B>
2.01 The Premises are leased for a term of approximately three
(3) years (the "Term") which shall commence on the earlier of (x) February 1,
2002 or (y) the date upon which Landlord's Work (hereinafter defined) is
substantially completed (the "Commencement Date") and shall end on the 31st
day of January, 2005 (the "Expiration Date") or on such earlier date upon
which the Term shall expire, be canceled or terminated pursuant to any of the
conditions or covenants of this Lease or pursuant to law.
<B>ARTICLE 3</B>
<B><U>RENT AND ADDITIONAL RENT</U></B>
3.01 Tenant shall pay fixed annual rent without electricity (the
"Fixed Annual Rent") at the rates provided for in the schedule annexed hereto
and made a part hereof as "Exhibit B" in equal monthly installments in
advance on the first (1st) day of each calendar month during the Term, except
that the first (1st) monthly installment of Fixed Annual Rent shall be paid
by Tenant upon its execution of this Lease. All sums other than Fixed Annual
Rent payable hereunder shall be deemed to be "Additional Rent" and shall be
payable on demand, unless other payment dates are hereinafter provided.
Tenant shall pay all Fixed Annual Rent and Additional Rent due hereunder at
the office of Landlord or such other place as Landlord may designate, payable
in United States legal tender, by cash, or by good and sufficient check drawn
on a New York City bank which is a member of the New York Clearing House or a
successor thereto, and without any set off or deduction whatsoever. The term
"Rent" as used in this Lease shall mean Fixed Annual Rent and Additional
Rent. Landlord may apply payments made by Tenant towards the payment of any
item of Fixed Annual Rent and/or Additional Rent payable hereunder
notwithstanding any designation by Tenant as to the items against which any
such payment should be credited.
3.02 Subject to the provisions hereof, if and so long as Tenant
is not in default under this Lease, the first (1st) monthly installment of
Fixed Annual Rent (without electricity) accruing under the Lease shall be
abated by the sum of $23,613.75. Anything contained hereinabove to the
contrary notwithstanding, if Tenant at any time during the term of the Lease,
breaches any material covenant, condition or provision of the Lease and fails
to cure such breach within any applicable grace period, and provided that the
Lease is terminated by Landlord because of such material default, then, in
addition to all other damages and remedies herein provided and to which
Landlord may be otherwise entitled, Landlord shall also be entitled to the
repayment in full of all Rent which has theretofore been abated under the
provisions of this Lease, which repayment Tenant shall make upon demand
therefore; provided, however, that amount to be repaid to Landlord under the
provisions of this Article shall be determined by multiplying the amount of
said abatement by a fraction, the denominator of which is number of months in
the term of the Lease, and the numerator of which is the number of months,
and portions thereof, remaining in the term of this Lease following such
breach.
<B>ARTICLE 4</B>
<B><U>ASSIGNMENT/SUBLETTING</U></B>
4.01 Neither Tenant nor Tenant's legal representatives or
successors in interest by operation of law or otherwise, shall assign,
mortgage or otherwise encumber this Lease, or sublet or permit all or part of
the Premises to be used by others, without the prior written consent of
Landlord in each instance. The transfer of a majority of the issued and
outstanding capital stock of any corporate tenant (excluding, however, the
transfer of stock effected through the "over-the-counter market" or through
any recognized stock exchange) or a majority of the total interest in any
partnership tenant, however accomplished, and whether in a single transaction
or in a series of related or unrelated transactions, the conversion Tenant to
either a limited liability company or a limited liability partnership or the
merger or consolidation of a corporate tenant, shall be deemed an assignment
of this Lease or of such sublease, consent to which shall be granted or
withheld by Landlord in accordance with the provisions of this Article. If
this Lease is assigned, or if the Premises or any part thereof is underlet or
occupied by anybody other than Tenant, Landlord may, after default by Tenant,
collect rent from the assignee, undertenant or occupant, and apply the net
amount collected to the rent herein reserved, but no assignment,
underletting, occupancy or collection shall be deemed a waiver of the
provisions hereof, the acceptance of the assignee, undertenant or occupant as
tenant, or a release of Tenant from the further performance by Tenant of
covenants on the part of Tenant herein contained. The consent by Landlord to
an assignment or underletting shall not in any way be construed to relieve
Tenant from obtaining the express consent in writing of Landlord to any
further assignment or underletting. In no event shall any permitted
sublessee assign or encumber its sublease or further sublet all or any
portion of its sublet space, or otherwise suffer or permit the sublet space
or any part thereof to be used or occupied by others, without Landlord's
prior written consent in each instance. A modification, amendment or
extension of a sublease shall be deemed a sublease. The listing of the name
of a party or entity other than that of Tenant on the Building or floor
directory or on or adjacent to the entrance door to the Premises shall
neither grant such party or entity any right or interest in this Lease or in
the Premises nor constitute Landlord's consent to any assignment or sublease
to, or occupancy of the Premises by, such party or entity. If any lien is
filed against the Premises or the Building of which the same form a part for
brokerage services claimed to have been performed for Tenant in connection
with any such assignment or sublease, whether or not actually performed, the
same shall be discharged within twenty (20) days thereafter, at Tenant's
expense, by filing the bond required by law, or otherwise, and paying any
other necessary sums, and Tenant agrees to indemnify Landlord and its agents
and hold them harmless from and against any and all claims, losses or
liability resulting from such lien for brokerage services rendered.
4.02 If Tenant desires to assign this Lease or to sublet all or
any portion of the Premises, it shall first submit in writing to Landlord a
notice (the "Tenant's Recapture Offer") which states, with respect to each
such prospective assignment or subletting, all of the relevant terms and
conditions upon which Tenant is willing to assign this Lease or sublet the
Premises, or any portion thereof, whichever may be applicable, and which
shall be deemed an offer under the terms and conditions contained in Tenant's
Recapture Offer (i) with respect to a prospective assignment, to assign this
Lease to Landlord without any payment of moneys or other consideration
therefor, or, (ii) with respect to a prospective subletting, to sublet to
Landlord the portion of the Premises involved ("Leaseback Area") on the same
terms, covenants and conditions (including provisions relating to escalation
rents) as are contained therein and as are allocable and applicable to the
portion of the Premises to be covered by such subletting. Tenant's Recapture
Offer shall specify the date when the Leaseback Area will be made available
to Landlord, which date shall be in no event earlier than sixty (60) days nor
later than one hundred eighty (180) days following the acceptance of Tenant's
Recapture Offer (the "Recapture Date"). If an offer of sublease is made, and
if the proposed sublease will result in all or substantially all of the
Premises being sublet for the balance or substantially the balance of the
Term, then Landlord shall have the option to extend the term of its proposed
sublease for the balance of the term of this Lease less one (1) day.
Landlord shall have a period of ninety (90) days from the receipt of such
Tenant's Recapture Offer to either accept or reject Tenant's Recapture Offer
or to terminate this Lease.
4.03. If Landlord exercises its option to terminate this Lease,
then (i) the term of this Lease shall end at the election of Landlord either
(x) if known, on the date that such assignment or sublet was to become
effective or commence, as the case may be, or (y) on the Recapture Date and
(ii) Tenant shall surrender to Landlord and vacate the Premises on or before
such date in the same condition as is otherwise required upon the expiration
of this Lease by its terms, (iii) the Rent and Additional Rent due hereunder
shall be paid and apportioned to such date, and (iv) Landlord shall be free
to lease the Premises (or any portion thereof) to any individual or entity
including, without limitation, Tenant's proposed assignee or subtenant.
4.04. If Landlord shall accept Tenant's Recapture Offer, Tenant
shall then execute and deliver to Landlord, or to anyone designated or named
by Landlord, an assignment or sublease, as the case may be, in either case in
a form reasonably satisfactory to Landlord's counsel.
If a sublease is so made it shall expressly:
(i) permit Landlord to make further subleases of all or any
part of the Leaseback Area and (at no cost or expense to Tenant) to make and
authorize any and all changes, alterations, installations and improvements in
such space as necessary;
(ii) provide that Tenant will at all times permit reasonably
appropriate means of ingress to and egress from the Leaseback Area;
(iii) negate any intention that the estate created under such
sublease be merged with any other estate held by either of the parties;
(iv) provide that Landlord shall accept the Leaseback Area "as
is" except that Landlord, at Tenant's expense, shall perform all such work
and make all such alterations as may be required physically to separate the
Leaseback Area from the remainder of the Premises and to permit lawful
occupancy, it being intended that Tenant shall have no other cost or expense
in connection with the subletting of the Leaseback Area;
(v) provide that at the expiration of the term of such sublease
Tenant will accept the Leaseback Area in its then existing condition, subject
to the obligations of Landlord to make such repairs thereto as may be
necessary to preserve the Leaseback Area in good order and condition,
ordinary wear and tear excepted.
4.05 Landlord shall indemnify and save Tenant harmless from all
obligations under this Lease as to the Leaseback Area during the period of
time it is so sublet, except for Fixed Annual Rent and Additional Rent, if
any, due under the within Lease, which are in excess of the rents and
additional sums due under such sublease. Subject to the foregoing,
performance by Landlord, or its designee, under a sublease of the Leaseback
Area shall be deemed performance by Tenant of any similar obligation under
this Lease and any default under any such sublease shall not give rise to a
default under a similar obligation contained in this Lease, nor shall Tenant
be liable for any default under this Lease or deemed to be in default
hereunder if such default is occasioned by or arises from any act or omission
of the tenant under such sublease or is occasioned by or arises from any act
or omission of any occupant holding under or pursuant to any such sublease.
4.06 If Tenant requests Landlord's consent to a specific
assignment or subletting, it shall submit in writing to Landlord (i) the name
and address of the proposed assignee or sublessee, (ii) a duly executed
counterpart of the proposed agreement of assignment or sublease, (iii)
reasonably satisfactory information as to the nature and character of the
business of the proposed assignee or sublessee and as to the nature of its
proposed use of the space, and (iv) banking, financial or other credit
information relating to the proposed assignee or sublessee reasonably
sufficient to enable Landlord to determine the financial responsibility and
character of the proposed assignee or sublessee.
4.07. If Landlord shall not have accepted Tenant's Recapture
Offer and Landlord shall not have terminated this Lease, as provided for in
Section 4.02 hereof, then Landlord will not unreasonably withhold or delay
its consent to Tenant's request for consent to such specific assignment or
subletting for the use permitted under this Lease, provided that any such
assignment or subletting shall (i) have economic terms that shall not vary by
more than five (5%) percent from the economic terms contained in Tenant's
Recapture Offer, (ii) be for a term expiring not more than three (3) months
before or beyond the term designated in Tenant's Recapture Offer and upon all
of the material terms and conditions set forth in Tenant's Recapture Offer
(iii) comply with all other applicable provisions of this Article (and in the
event that the economic terms and/or the term of such proposed subletting or
assignment, as the case may be, vary from the economic terms and/or the term
contained in Tenant's Recapture Offer beyond the variances set forth above,
then Tenant's request for consent shall be deemed to constitute a new
Tenant's Recapture Offer to Landlord under the terms and conditions contained
in the proposed sublease or assignment, as the case may be, with respect to
which all of the provisions of this Article 4 shall again apply), and
provided further that:
(i) The Premises shall not, without Landlord's prior consent,
have been listed or otherwise publicly advertised for assignment or
subletting at a rental rate lower than the then prevailing rental rate for
other space in the Building;
(ii) The proposed assignee or subtenant shall have a financial
standing, be of a character, be engaged in a business, and propose to use the
Premises, in a manner consistent with the permitted use and in keeping with
the standards of the Building;
(iii) The proposed assignee or subtenant shall not then be a
tenant, subtenant, assignee or occupant of any space in the Building, nor
shall the proposed assignee or subtenant be a person or entity who has dealt
with Landlord or Landlord's agent (directly or through a broker) with respect
to space in the Building during the six (6) months immediately preceding
Tenant's request for Landlord's consent;
(iv) The character of the business to be conducted in the
Premises by the proposed assignee or subtenant shall not be likely to
increase operating expenses or the burden on existing cleaning services,
elevators or other services and/or systems of the Building;
(v) In case of a subletting, the subtenant shall be expressly
subject to all of the obligations of Tenant under this Lease and the further
condition and restriction that such sublease shall not be assigned,
encumbered or otherwise transferred or the Premises further sublet by the
subtenant in whole or in part, or any part thereof suffered or permitted by
the subtenant to be used or occupied by others, without the prior written
consent of Landlord in each instance;
(vi) No subletting shall end later than one (1) day before the
Expiration Date nor shall any subletting be for a term of less than one (1)
year unless it commences less than one (1) year before the Expiration Date;
(vii) At no time shall there be more than three (3) occupants,
including Tenant, in the Premises;
(viii) Tenant shall reimburse Landlord on demand for any
reasonable costs, including attorneys' fees and disbursements, that may be
incurred by Landlord in connection with said assignment or sublease;
(ix) The character of the business to be conducted in the
Premises by the proposed assignee or subtenant shall not require any
alterations, installations, improvements, additions or other physical changes
to be performed, or made to, any portion of the Building or the Real Property
other than the Premises; and
(x) The proposed assignee or subtenant shall not be any entity
which is entitled to diplomatic or sovereign immunity or which is not subject
to service of process in the State of New York or to the jurisdiction of the
courts of the State of New York and the United States located in New York
County.
4.08 Any consent of Landlord under this Article shall be subject
to the terms of this Article and conditioned upon there being no default by
Tenant, beyond any grace period, under any of the terms, covenants and
conditions of this Lease at the time that Landlord's consent to any such
subletting or assignment is requested and on the date of the commencement of
the term of any proposed sublease or the effective date of any proposed
assignment. Tenant acknowledges and agrees that no assignment or subletting
shall be effective unless and until Tenant, upon receiving any necessary
Landlord's written consent (and unless it was theretofore delivered to
Landlord) causes a duly executed copy of the sublease or assignment to be
delivered to Landlord within ten (10) days after execution thereof. Any such
sublease shall provide that the sublessee shall comply with all applicable
terms and conditions of this Lease to be performed by the Tenant hereunder.
Any such assignment of this Lease shall contain an assumption by the assignee
of all of the terms, covenants and conditions of this Lease to be performed
by the Tenant. In addition to the foregoing, as a condition to such consent,
in the event that either the net worth or ratio of current assets to current
liabilities (exclusive of good will) of Tenant as of the effective date of
the sublease or assignment is less than the net worth or ratio of current
assets to current liabilities (exclusive of good will) of Tenant as of the
Commencement Date, Landlord may require Tenant to deposit additional security
in an amount equal to fifty (50%) percent of the security then on deposit
with Landlord hereunder in order to secure performance of the obligations of
Tenant accruing from and after the commencement date of any proposed sublease
or the effective date of any proposed assignment.
4.09 A. Anything hereinabove contained to the contrary
notwithstanding, the "recapture" provisions of this Article shall not apply
to, and Landlord's consent shall not be required for, an assignment of this
Lease, or sublease of all or part of the Premises for the uses permitted
hereunder, to a Related Entity, provided that (i) Landlord is given prior
notice thereof and reasonably satisfactory proof that the requirements of
this Lease have been met and Tenant agrees to remain primarily liable,
jointly and severally, with any transferee or assignee, for the obligations
of Tenant under this Lease, (ii) any such transaction complies with the
provisions of this Article (other than those related to Landlord's consent
and recapture rights), and (iii) in Landlord's reasonable judgment the
proposed assignee or subtenant is engaged in a business and the Premises, or
the relevant part thereof, will be used in a manner which (x) is in keeping
with the standards of the Building and (y) would not adversely affect or
increase Landlord's cost in the operation of the Building.
B. For purposes of this Article:
(i) a "Related Entity" shall mean (x) a wholly-owned
subsidiary of Tenant or any corporation or entity which controls or is
controlled by Tenant or is under common control with Tenant or (y) any entity
(i) to which substantially all the assets of Tenant are transferred or (ii)
into which Tenant may be merged or consolidated, provided that in either such
case both the net worth and ratio of current assets to current liabilities
(exclusive of good will) of such transferee or of the resulting or surviving
corporation or other business entity, as the case may be, as certified by the
certified public accountants of such transferee or the resulting or surviving
business entity in accordance with generally accepted accounting principles,
consistently applied, is not less than Tenant's net worth and ratio of
current assets to current liabilities (exclusive of good will), as so
certified, as of (a) the Commencement Date or (b) the day immediately prior
to such transaction, whichever is greater; and
(ii) the term "control" shall mean, in the case of a corporation
or other entity, ownership or voting control, directly or indirectly, of at
least fifty (50%) percent of all of the general or other partnership (or
similar) interests therein.
4.10 If Landlord shall not have accepted Tenant's Recapture
Offer hereunder and Landlord has not elected to terminate this Lease, and
Tenant effects any assignment or subletting, then Tenant thereafter shall pay
to Landlord a sum equal to (a) any rent or other consideration payable to
Tenant by any subtenant which is in excess of the rent allocable to the
subleased space which is then being paid by Tenant to Landlord pursuant to
the terms hereof, and (b) any other profit or gain realized by Tenant from
any such subletting or assignment. In computing such excess amount and/or
profit or gain, any advertising, legal expenses and brokerage commissions
reasonably incurred by Tenant in connection with such assignment or
subleasing shall be deducted on an amortized basis (i.e., in equal monthly
installments) over the balance of the term of the sublease, in the event of a
subletting, or this Lease, in the event of an assignment.
4.11. In no event shall Tenant be entitled to make, nor shall
Tenant make, any claim, and Tenant hereby waives any claim, for money damages
(nor shall Tenant claim any money damages by way of set-off, counterclaim or
defense) based upon any claim or assertion by Tenant that Landlord has
unreasonably withheld or unreasonably delayed its consent or approval to a
proposed assignment or subletting as provided for in this Article. Tenant's
sole remedy shall be an action or proceeding to enforce any such provision,
or for specific performance, injunction or declaratory judgment.
<B>ARTICLE 5</B>
<B><U>DEFAULT</U></B>
5.01 Landlord may terminate this Lease on ten (10) days' notice:
(a) if Rent or Additional Rent is not paid within seven (7) days after
written notice from Landlord; or (b) if Tenant shall have failed to cure a
default in the performance of any covenant of this Lease (except the payment
of Rent), or any rule or regulation hereinafter set forth, within twenty (20)
days after written notice thereof from Landlord, or if default cannot be
completely cured in such time, if Tenant shall not promptly proceed to cure
such default within said twenty (20) days, or shall not complete the curing
of such default with due diligence; or (c) when and to the extent permitted
by law, if a petition in bankruptcy shall be filed by or against Tenant or if
Tenant shall make a general assignment for the benefit of creditors, or
receive the benefit of any insolvency or reorganization act; or (d) if a
receiver or trustee is appointed for any portion of Tenant's property and
such appointment is not vacated within twenty (20) days; or (e) if an
execution or attachment shall be issued under which the Premises shall be
taken or occupied or attempted to be taken or occupied by anyone other than
Tenant; or (f) if Tenant shall default beyond any grace period under any
other lease between Tenant and Landlord. At the expiration of the ten (10)
day notice period, this Lease and any rights of renewal or extension thereof
shall terminate as completely as if that were the date originally fixed for
the expiration of the Term of this Lease, but Tenant shall remain liable as
hereinafter provided.
5.02 In the event that Tenant is in arrears for Fixed Annual
Rent or any item of Additional Rent, Tenant waives its right, if any, to
designate the items against which payments made by Tenant are to be credited
and Landlord may apply any payments made by Tenant to any items which
Landlord in its sole discretion may elect irrespective of any designation by
Tenant as to the items against which any such payment should be credited.
5.03 Tenant shall not seek to remove and/or consolidate any
summary proceeding brought by Landlord with any action commenced by Tenant in
connection with this Lease or Tenant's use and/or occupancy of the Premises.
5.04 In the event of a default by Landlord hereunder, no
property or assets of Landlord, or any principals, shareholders, officers,
directors, partners or members of Landlord, whether disclosed or undisclosed,
other than the Building in which the Premises are located and the land upon
which the Building is situated, shall be subject to levy, execution or other
enforcement procedure for the satisfaction of Tenant's remedies under or with
respect to this Lease, the relationship of Landlord and Tenant hereunder or
Tenant's use and occupancy of the Premises.
<B>ARTICLE 6</B>
<B><U>RELETTING, ETC.</U></B>
6.01 If Landlord shall re-enter the Premises on the default of
Tenant, by summary proceedings or otherwise: (a) Landlord may re-let the
Premises or any part thereof, as Tenant's agent, in the name of Landlord, or
otherwise, for a term shorter or longer than the balance of the term of this
Lease, and may grant concessions or free rent; (b) Tenant shall pay Landlord
any deficiency between the rent hereby reserved and the net amount of any
rents collected by Landlord for the remaining term of this Lease, through
such re-letting. Such deficiency shall become due and payable monthly, as it
is determined. Landlord shall have no obligation to re-let the Premises, and
its failure or refusal to do so, or failure to collect rent on re-letting,
shall not affect Tenant's liability hereunder. In computing the net amount
of rents collected through such re-letting, Landlord may deduct all expenses
incurred in obtaining possession or re-letting the Premises, including legal
expenses and fees, reasonable brokerage fees, the cost of restoring the
Premises to good order, and the reasonable cost of all alterations and
decorations deemed necessary by Landlord to effect re-letting. In no event
shall Tenant be entitled to a credit or repayment for rerental income which
exceeds the sums payable by Tenant hereunder or which covers a period after
the original term of this Lease; (c) Tenant hereby expressly waives any
right of redemption granted by any present or future law. "Re-enter" and
"re-entry" as used in this Lease are not restricted to their technical legal
meaning. In the event of a breach or threatened breach of any of the
covenants or provisions hereof, Landlord shall have the right of injunction.
Mention herein of any particular remedy shall not preclude Landlord from any
other available remedy; (d) Landlord shall recover as liquidated damages, in
addition to accrued rent and other charges, if Landlord's re-entry is the
result of Tenant's bankruptcy, insolvency, or reorganization, the full rental
for the maximum period allowed by any act relating to bankruptcy, insolvency
or reorganization.
6.02 If Landlord re-enters the Premises for any cause, or if
Tenant abandons the Premises, or after the expiration of the term of this
Lease, any property left in the Premises by Tenant shall be deemed to have
been abandoned by Tenant, and Landlord shall have the right to retain or
dispose of such property in any manner without any obligation to account
therefor to Tenant. If Tenant shall at any time default hereunder, and if
Landlord shall institute an action or summary proceeding against Tenant based
upon such default, then Tenant will reimburse Landlord for the legal expenses
and fees thereby incurred by Landlord.
<B>ARTICLE 7</B>
<B><U>LANDLORD MAY CURE DEFAULTS</U></B>
7.01 If Tenant shall default in performing any covenant or
condition of this Lease, Landlord may perform the same for the account of
Tenant, and if Landlord, in connection therewith, or in connection with any
default by Tenant, makes any expenditures or incurs any obligations for the
payment of money, including but not limited to reasonable attorney's fees,
such sums so paid or obligations incurred shall be deemed to be Additional
Rent hereunder, and shall be paid by Tenant to Landlord within five (5) days
of rendition of any bill or statement therefor, and if Tenant's lease term
shall have expired at the time of the making of such expenditures or
incurring of such obligations, such sums shall be recoverable by Landlord as
damages.
<B>ARTICLE 8</B>
<B><U>ALTERATIONS</U></B>
8.01 Tenant shall make no alteration, addition or improvement in
the Premises, without the prior written consent of Landlord, and then only by
contractors or mechanics and in such manner and time, and with such
materials, as approved by Landlord. All alterations, additions or
improvements to the Premises, including air-conditioning equipment and duct
work, except movable office furniture and trade equipment installed at the
expense of Tenant, shall, unless Landlord elects otherwise in writing, become
the property of Landlord, and shall be surrendered with the Premises, at the
expiration or sooner termination of the term of this Lease. Except with
respect to Tenant's Initial Alteration Work (hereinafter defined), any such
alterations, additions and improvements which Landlord shall designate shall
be removed by Tenant and any damage repaired, at Tenant's expense, prior to
the expiration of this Lease. Landlord shall make such designation at the
time that consent to such alteration, addition or improvement is given
provided that Tenant attaches, as part of its request for such consent, a
separate written notice specifically referencing this provision and advising
Landlord that Landlord is required to make such designation as part of any
such consent given by Landlord hereunder.
8.02 Anything hereinabove to the contrary notwithstanding,
Landlord will not unreasonably withhold or delay approval of written requests
of Tenant to make nonstructural interior alterations, additions and
improvements (herein referred to as "Alterations") in the Premises, provided
that such Alterations do not affect utility services or plumbing and
electrical lines or other systems of the Building and do not affect and are
not visible from any portion of the Building outside of the Premises. All
Alterations shall be performed in accordance with the following conditions:
(i) Prior to the commencement of any Alterations costing more
than $20,000.00 or requiring a building permit, Tenant shall first submit to
Landlord for its approval detailed dimensioned coordinated plans and
specifications, including layout, architectural, mechanical, electrical,
plumbing and structural drawings for each proposed Alteration. Landlord
shall be given, in writing, a good description of all other Alterations.
(ii) All Alterations in and to the Premises shall be performed
in a good and workmanlike manner and in accordance with the Building's rules
and regulations governing Tenant Alterations. Prior to the commencement of
any such Alterations, Tenant shall, at its sole cost and expense, obtain and
exhibit to Landlord any governmental permit required in connection with such
Alterations. In order to compensate Landlord for its general conditions and
the costs incurred by Landlord in connection with Tenant's performance of
Alterations in and/or to the Premises (including, without limitation, the
costs incurred by Landlord in connection with the coordination of Alterations
which may affect systems or services of the Building or portions of the
Building outside of the Premises), Tenant shall pay to Landlord a fee equal
to five (5%) percent of the cost of such Alterations (excluding (a) the costs
of decorations, paint, and wallpaper and (b) Alterations performed by or on
behalf of Tenant in the Premises within the first one hundred fifty (150)
days of the Term in order to prepare the Premises for Tenant's initial
occupancy thereof). Such fee shall be paid by Tenant as Additional Rent
hereunder within ten (10) days following receipt of an invoice therefor.
(iii) All Alterations shall be done in compliance with all other
applicable provisions of this Lease and with all applicable laws, ordinances,
directions, rules and regulations of governmental authorities having
jurisdiction, including, without limitation, the Americans with Disabilities
Act of 1990 and New York City Local Law No. 57/87 and similar present or
future laws, and regulations issued pursuant thereto, and also New York City
Local Law No. 76 and similar present or future laws, and regulations issued
pursuant thereto, on abatement, storage, transportation and disposal of
asbestos and other hazardous materials, which work, if required, shall be
effected at Tenant's sole cost and expense, by contractors and consultants
approved by Landlord and in strict compliance with the aforesaid rules and
regulations and with Landlord's rules and regulations thereon.
Notwithstanding the foregoing, Landlord shall: (a) remove, enclose,
encapsulate or otherwise manage to the extent required by applicable law any
deteriorated asbestos or deteriorated asbestos-containing material
(collectively, "Deteriorated ACM") located within the Premises; provided,
however, that notwithstanding anything contained in this Lease to the
contrary, Tenant shall remove, enclose, encapsulate or otherwise manage such
Deteriorated ACM as required by applicable law to the extent that (i) Tenant
(x) disturbed such Deteriorated ACM or caused such Deteriorated ACM to become
friable by the performance of any work or Alterations in or to the Premises
or (y) installed the same, or (ii) such Deteriorated ACM consists of vinyl
asbestos tiles; and (b) prior to the Commencement Date, cure any violations
of record with respect to the alterations and improvements existing within
Premises not caused by Tenant.
(iv) All work shall be performed with union labor having the
proper jurisdictional qualifications.
(v) Tenant shall keep the Building and the Premises free and
clear of all liens for any work or material claimed to have been furnished to
Tenant or to the Premises.
(vi) Prior to the commencement of any work by or for Tenant,
Tenant shall furnish to Landlord certificates evidencing the existence of the
following insurance:
(a) Workmen's compensation insurance covering all persons
employed for such work and with respect to whom death or bodily injury claims
could be asserted against Landlord, Tenant or the Premises.
(b) Broad form general liability insurance written on an
occurrence basis naming Tenant as an insured and naming Landlord and its
designees as additional insureds, with limits of not less than $3,000,000
combined single limit for personal injury in any one occurrence, and with
limits of not less than $500,000 for property damage (the foregoing limits
may be revised from time to time by Landlord to such higher limits as
Landlord from time to time reasonably requires). Tenant, at its sole cost
and expense, shall cause all such insurance to be maintained at all time when
the work to be performed for or by Tenant is in progress. All such insurance
shall be obtained from a company authorized to do business in New York and
shall provide that it cannot be canceled without thirty (30) days prior
written notice to Landlord. All polices, or certificates therefor, issued by
the insurer and bearing notations evidencing the payment of premiums, shall
be delivered to Landlord. Blanket coverage shall be acceptable, provided
that coverage meeting the requirements of this paragraph is assigned to
Tenant's location at the Premises.
(vii) In granting its consent to any Alteration, Landlord may
impose such conditions as to guarantee of completion (including, without
limitation, requiring Tenant to post additional security or a bond to insure
the completion of such Alterations, payment, restoration or otherwise), as
Landlord may reasonably require, in the event that either the net worth or
ratio of current assets to current liabilities (exclusive of good will) of
Tenant as of the date upon which such consent is requested is less than the
net worth or ratio of current assets to current liabilities (exclusive of
good will) of Tenant.
(viii) All work to be performed by Tenant shall be done in a
manner which will not interfere with or disturb other tenants and occupants
of the Building.
(xi) The review and/or approval by Landlord, its agents,
consultants and/or contractors, of any Alteration or of plans and
specifications therefor and the coordination of such Alteration work with the
Building, as described in part above, are solely for the benefit of Landlord,
and neither Landlord nor any of its agents, consultants or contractors shall
have any duty toward Tenant; nor shall Landlord or any of its agents,
consultants and/or contractors be deemed to have made any representation or
warranty to Tenant, or have any liability, with respect to the safety,
adequacy, correctness, efficiency or compliance with laws of any plans and
specifications, Alterations or any other matter relating thereto.
(x) Promptly following the substantial completion of any
Alterations requiring a building permit, Tenant shall submit to Landlord: (a)
one (1) sepia and one (1) copy on floppy disk (using a current version of
Autocad or such other similar software as is then commonly in use) of final,
"as-built" plans for the Premises showing all such Alterations and
demonstrating that such Alterations were performed substantially in
accordance with plans and specifications first approved by Landlord and (b)
an itemization of Tenant's total construction costs, detailed by contractor,
subcontractors, vendors and materialmen; bills, receipts, lien waivers and
releases from all contractors, subcontractors, vendors and materialmen;
architects' and Tenant's certification of completion, payment and acceptance,
and all governmental approvals and confirmations of completion for such
Alterations.
<B>ARTICLE 9</B>
<B><U>LIENS</U></B>
9.01 Prior to commencement of its work in the Premises, Tenant
shall obtain and deliver to Landlord a written letter of authorization, in
form satisfactory to Landlord's counsel, signed by all architects, engineers
and designers to become involved in such work, which shall confirm that any
of their drawings or plans are to be removed from any filing with
governmental authorities on request of Landlord, in the event that said
architect, engineer or designer thereafter no longer is providing services
with respect to the Premises. With respect to contractors, subcontractors,
materialmen and laborers, and architects, engineers and designers, for all
work or materials to be furnished to Tenant at the Premises, Tenant agrees to
obtain and deliver to Landlord written and unconditional waiver of mechanics
liens upon the Premises or the Building after payments to the contractors,
etc., subject to any then applicable provisions of the Lien Law.
Notwithstanding the foregoing, Tenant at its expense shall cause any lien
filed against the Premises or the Building, for work or materials claimed to
have been furnished to Tenant, to be discharged of record within twenty (20)
days after notice thereof.
<B>ARTICLE 10</B>
<B><U>REPAIRS</U></B>
10.01 Tenant shall take good care of the Premises and the
fixtures and appurtenances therein, and shall make all repairs necessary to
keep them in good working order and condition, including structural repairs
when those are necessitated by the act, omission or negligence of Tenant or
its agents, employees, invitees or contractors, subject to the provisions of
Article 11 hereof. During the term of this Lease, Tenant may have the use of
any air-conditioning equipment servicing the Premises, subject to the
provisions of Article 35 of this Lease, and shall reimburse Landlord, in
accordance with Article 41 of this Lease, for electricity consumed by the
equipment. The exterior walls and roofs of the Building, the mechanical
rooms, service closets, shafts, areas above any hung ceiling and the windows
and the portions of all window sills outside same are not part of the
Premises demised by this Lease, and Landlord hereby reserves all rights to
such parts of the Building. Tenant shall not paint, alter, drill into or
otherwise change the appearance of the windows including, without limitation,
the sills, jambs, frames, sashes, and meeting rails.
<B>ARTICLE 11</B>
<B><U>FIRE OR OTHER CASUALTY</U></B>
11.01 Damage by fire or other casualty to the Building and to the
core and shell of the Premises (excluding the tenant improvements and
betterments and Tenant's personal property) shall be repaired at the expense
of Landlord ("Landlord's Restoration Work"), but without prejudice to the
rights of subrogation, if any, of Landlord's insurer to the extent not waived
herein. Landlord shall not be required to repair or restore any of Tenant's
property or any alteration, installation or leasehold improvement made in
and/or to the Premises. If, as a result of such damage to the Building or to
the core and shell of the Premises, the Premises are rendered untenantable,
the Rent shall abate in proportion to the portion of the Premises not usable
by Tenant from the date of such fire or other casualty until Landlord's
Restoration Work is substantially completed. Landlord shall not be liable to
Tenant for any delay in performing Landlord's Restoration Work, Tenant's sole
remedy being the right to an abatement of rent, as provided above. Tenant
shall cooperate with Landlord in connection with the performance by Landlord
of Landlord's Restoration Work. If the Premises are rendered wholly
untenantable by fire or other casualty and if Landlord shall decide not to
restore the Premises, or if the Building shall be so damaged that Landlord
shall decide to demolish it or not to rebuild it (whether or not the Premises
have been damaged), Landlord may within ninety (90) days after such fire or
other cause give written notice to Tenant of its election that the term of
this Lease shall automatically expire no less than ten (10) days after such
notice is given. Notwithstanding the foregoing, each party shall look first
to any insurance in its favor before making any claim against the other party
for recovery for loss or damage resulting from fire or other casualty, and to
the extent that such insurance is in force and collectible and to the extent
permitted by law, Landlord and Tenant each hereby releases and waives all
right of recovery against the other or any one claiming through or under each
of them by way of subrogation or otherwise. The foregoing release and waiver
shall be in force only if both releasors' insurance policies contain a clause
providing that such a release or waiver shall not invalidate the insurance
and also, provided that such a policy can be obtained without additional
premiums. Tenant hereby expressly waives the provisions of Section 227 of
the Real Property Law and agrees that the foregoing provisions of this
Article shall govern and control in lieu thereof.
11.02 In the event that the Premises has been damaged or
destroyed and this Lease has not been terminated in accordance with the
provisions of this Article, Tenant shall (i) cooperate with Landlord in the
restoration of the Premises and shall remove from the Premises as promptly as
reasonably possible all of Tenant's salvageable inventory, movable equipment,
furniture and other property and (ii) repair the damage to the tenant
improvements and betterments and Tenant's personal property and restore the
Premises within one hundred eighty (180) days following the date upon which
the core and shell of the Premises shall have been substantially repaired by
Landlord.
11.03 For purposes of this Section 11.03, a "Major Casualty"
shall mean damage or destruction (i) to the core and shell of the Premises or
(ii) the Building to the extent that Tenant's access to the Premises has been
substantially impaired. Provided that Landlord does not elect to terminate
this Lease in accordance with the provisions of this Article, in the event of
a Major Casualty, if: (i) there has been substantial damage or destruction to
any portion or portions of the Building and Landlord shall not have
substantially restored Tenant's access to the Premises within ten (10) months
from the date of such Major Casualty, or within such period after such date
(not exceeding three (3) months) as shall equal the aggregate period Landlord
may have been delayed in doing so by reasons of Force Majeure (defined
below); or (ii) if damage is confined substantially to the Premises and
Landlord shall not have substantially completed the making of the required
repairs to the core and shell of the Premises within ten (10) months from the
date of such Major Casualty, or within such period after such date (not
exceeding three (3) months) as shall equal the aggregate period Landlord may
have been delayed in doing so by reasons of Force Majeure, then, and in such
event, Tenant may elect to terminate this Lease upon giving written notice to
Landlord within thirty (30) days after the end of such twelve (12) or nine
(9) month period, as the case may be, and as the same may be extended in
accordance with the provisions hereof, and the term of this Lease shall
expire on the date set forth therein which shall be not less than thirty (30)
days after the date such notice is given (the "Cancellation Date") provided
that Landlord does not substantially complete the required repairs to the
Building or to the core and shell of the Premises, as the case may be, prior
to the Cancellation Date. For purposes of this Article, "Force Majeure"
shall mean the inability of Landlord to perform an obligation accruing under
this Article by reason of accidents, strikes, the inability to secure a
proper supply of fuel, gas, steam, water, electricity, labor or supplies,
governmental restrictions, regulations or controls or by reason of any other
similar cause beyond the reasonable control of Landlord.
<B>ARTICLE 12</B>
<B><U>END OF TERM</U></B>
12.01 Tenant shall surrender the Premises to Landlord at the
expiration or sooner termination of this Lease in good order and condition,
except for reasonable wear and tear and damage by fire or other casualty, and
Tenant shall remove all of its property. In the event that Tenant fails to
surrender possession of the Premises to Landlord within thirty (30) days
after the date of the expiration or sooner termination of the Term of this
Lease, in addition to all other remedies provided for herein, in equity and
at law, Tenant agrees that it shall indemnify and save Landlord harmless
against all costs, claims, loss or liability resulting from delay by Tenant
in so surrendering the Premises, including, without limitation, any claims
made by any succeeding tenant founded on such delay. The parties recognize
and agree that the damage to Landlord resulting from any failure by Tenant
timely to surrender the Premises will be substantial, will exceed the amount
of monthly Rent theretofore payable hereunder, and will be impossible of
accurate measurement. Tenant therefore agrees that if possession of the
Premises is not surrendered to Landlord within one (1) day after the date of
the expiration or sooner termination of the Term of this Lease, then Tenant
will pay Landlord as liquidated damages for each month and for each portion
of any month during which Tenant holds over in the Premises after expiration
or termination of the Term of this Lease, a sum equal to two (2) times the
average Rent and Additional Rent which was payable per month under this Lease
during the last six months of the Term thereof. The aforesaid obligations
shall survive the expiration or sooner termination of the Term of this
Lease. At any time during the Term of this Lease, Landlord may exhibit the
Premises to prospective purchasers or mortgagees of Landlord's interest
therein. During the last year of the term of this Lease, Landlord may
exhibit the Premises to prospective tenants.
<B>ARTICLE 13</B>
<B><U>SUBORDINATION AND ESTOPPEL, ETC.</U></B>
13.01 This Lease is and shall be subject and subordinate to all
present and future ground leases, underlying leases and to all subleases of
the entire premises demised by that certain ground lease (hereinafter
referred to as the "Mesne Lease") dated December 30, 1957 and recorded in the
office of the Register of the City of New York in the County of New York on
December 31, 1957, in Liber 5024 of Conveyances, Page 430 of which the
premises hereby demised form a part (the Mesne Lease and any or all present
and future ground leases underlying leases and subleases of the entire
premises demised by the Mesne Lease are hereunder referred to as the "ground
leases" and the lessors and lessees thereunder are hereinafter referred to
respectively as the "ground lessors" and "ground lessees" ) and to all
renewals, modifications, replacements and extensions of the ground leases,
and to all present and future mortgages affecting such ground leases (such
mortgages are hereinafter referred to as the "mortgages" and the mortgagees
thereunder are hereinafter referred to as the "the mortgagees") including,
without limitation, that certain Amended and Restated Indenture of Leasehold
Mortgage, Security Agreement, Financing Statement, Fixture Filing and
Assignment of Leases, Rents and Security Deposits, dated as of May 21, 1999
by and between SLG Graybar Mesne Lease LLC and SLG Graybar Sublease LLC, as
mortgagor, and German American Capital Corporation, as mortgagee, and to all
renewals, modifications, replacements and extensions of the mortgages.
13.02 Notwithstanding the subordination of this Lease to all
ground leases and mortgages, this Lease shall not terminate or be terminable
by Tenant by reason of the expiration or earlier termination or cancellation
of any ground lease in accordance with its terms or by reason of the
foreclosures of any mortgage, except that this lease may be terminated if
Tenant is named as a party and served with process in a summary or other
proceeding brought by the lessor under the Mesne Lease (hereinafter referred
to as the "Mesne Lessor") for the possession of the premises demised by the
Mesne Lease or the space occupied by Tenant, or in such proceeding brought
with the written consent of the Mesne Lessor delivered to Tenant, and a final
order or judgment is entered, and a warrant for possession of such space
issued and executed against the defendants or respondents in such proceedings.
13.03 Tenant agrees that if this Lease terminates, expires or is
canceled for any reason or by any means whatsoever (other than by a summary
or other proceeding brought by the Mesne Lessor or with the Mesne Lessor's
written consent delivered to Tenant, in which summary or other proceeding
Tenant is made a party and in which a final order or judgment is entered and
warrant for possession is issued and executed against Tenant) and Mesne
Lessor or a ground lessor so elects by written notice to Tenant, this lease
shall automatically be reinstated for the balance of the term which would
have remained but for such termination, expiration or cancellation, at the
same rental, and upon the same agreements, covenants, conditions,
restrictions and provisions herein contained, with the same rental, and upon
the same agreements, covenants, conditions, restrictions and provisions
herein contained, with the same force and effect as if no such termination,
expiration or cancellation had taken place. Tenant covenants to execute and
deliver any instrument required to confirm the validity of the foregoing.
Anything herein contained to the contrary notwithstanding, this lease shall
not be deemed to be automatically reinstated as aforesaid, nor shall Tenant
be obligated to execute and deliver any instrument confirming such
reinstatement, if Tenant has delivered to the Mesne Lessor and any ground
lessor so electing a notice that in Tenant's option this lease has so
terminated, expired or been canceled, and neither the Mesne Lessor nor such
other ground lessor has, within thirty (30) days after receipt of such notice
from Tenant, delivered notice to Tenant of its election automatically to
reinstate this lease.
13.04 Tenant hereby consents to any and all assignment of
Landlord's interest in this Lease to any ground lessor or mortgagee as
collateral security for the payment of the ground rent or monies due under
any mortgage. Tenant agrees to attorn to and pay rent to any such ground
lessor's or mortgagee in accordance with the provisions of any such
assignment.
13.05 Tenant agrees that no act, or failure to act, on the part
of Landlord, which would entitle Tenant under the terms of this Lease, or by
law to be relieved of Tenant's obligations hereunder or to terminate this
lease, shall result in a release or termination of such obligations or
termination of this lease unless (i) Tenant shall have first given written
notice of Landlord's act or failure to act to the ground lessors under all
then existing ground leases, to all then existing mortgagees who have
requested such notice from Tenant, and to German American Capital
Corporation, as mortgagee, at (i) 1301 Sixth Avenue, New York, New York
10019, Attn.: General Counsel, and at (ii) Skadden, Arps, Slate, Meagher &
Flom, LLP, 4 Times Square, New York, New York 10036, Attn.: Harvey Uris,
Esq., specifying the act or failure to act on the part of Landlord which
could or would given basis to Tenant's rights and (ii) the ground lessors and
such mortgagees, after receipt of such notice, have failed or refused to
correct or cure the condition complained of within a reasonable time
thereafter but nothing herein contained shall be deemed to impose any
obligation on any ground lessor or such mortgagee to correct or cure any such
condition.
13.06 This Lease may not be modified or amended so as to reduce
the rent, shorten the term, or otherwise materially affect the rights of
Landlord hereunder, or be canceled or surrendered except as provided in
Section 13.05 this Article without the prior written consent in each instance
of the ground lessors and of any mortgagees whose mortgages shall require
such consent. Any such modification, agreement, cancellation or surrender
made without such prior written consent shall be null and void.
13.07 From time to time, Tenant, on at least ten (10) days' prior
written request by Landlord, shall deliver to Landlord a statement in writing
certifying that this Lease is unmodified and in full force and effect (or if
there shall have been modifications, that the same is in full force and
effect as modified and stating the modifications) and the dates to which the
Rent and other charges have been paid and stating whether or not, to the best
of Tenant's knowledge, Landlord is in default in performance of any covenant,
agreement or condition contained in this Lease and, if so, specifying each
such default. Tenant hereby irrevocably constitutes and appoints Landlord
the attorney-in-fact of Tenant to execute, acknowledge and deliver any such
statements or certificates for and on behalf of Tenant in the event that
Tenant fails to so execute any such statement or certificate for a period of
five (5) business days for notice of such default.
<B>ARTICLE 14</B>
<B><U>CONDEMNATION</U></B>
14.01 If the whole or any substantial part of the Premises shall
be condemned by eminent domain or acquired by private purchase in lieu
thereof, for any public or quasi-public purpose, this Lease shall terminate
on the date of the vesting of title through such proceeding or purchase, and
Tenant shall have no claim against Landlord for the value of any unexpired
portion of the Term of this Lease, nor shall Tenant be entitled to any part
of the condemnation award or private purchase price. If less than a
substantial part of the Premises is condemned, this Lease shall not
terminate, but Rent shall abate in proportion to the portion of the Premises
condemned.
<B>ARTICLE 15</B>
<B><U>REQUIREMENTS OF LAW</U></B>
15.01 Tenant at its expense shall comply with all laws, orders
and regulations of any governmental authority having or asserting
jurisdiction over the Premises, which shall impose any violation, order or
duty upon Landlord or Tenant with respect to the Premises or the use or
occupancy thereof, including, without limitation, compliance in the Premises
with all City, State and Federal laws, rules and regulations on the disabled
or handicapped, on fire safety and on hazardous materials. The foregoing
shall not require Tenant to do structural work to the Building.
15.02 Tenant shall require every person engaged by him to clean
any window in the Premises from the outside, to use the equipment and safety
devices required by Section 202 of the Labor Law and the rules of any
governmental authority having or asserting jurisdiction.
15.03 Tenant at its expense shall comply with all requirements of
the New York Board of Fire Underwriters, or any other similar body affecting
the Premises, and shall not use the Premises in a manner which shall increase
the rate of fire insurance of Landlord or of any other tenant, over that in
effect prior to this Lease. If Tenant's use of the Premises increases the
fire insurance rate, Tenant shall reimburse Landlord for all such increased
costs. That the Premises are being used for the purpose set forth in Article
1 hereof shall not relieve Tenant from the foregoing duties, obligations and
expenses.
<B>ARTICLE 16</B>
<B><U>CERTIFICATE OF OCCUPANCY</U></B>
16.01 Tenant will at no time use or occupy the Premises in
violation of the certificate of occupancy issued for the Building. The
statement in this Lease of the nature of the business to be conducted by
Tenant shall not be deemed to constitute a representation or guaranty by
Landlord that such use is lawful or permissible in the Premises under the
certificate of occupancy for the Building.
<B>ARTICLE 17</B>
<B><U>POSSESSION</U></B>
17.01 If Landlord shall be unable to give possession of the
Premises on the Commencement Date because of the retention of possession of
any occupant thereof, alteration or construction work, or for any other
reason, Landlord shall not be subject to any liability for such failure. In
such event, this Lease shall stay in full force and effect, without extension
of its Term. However, the Rent hereunder shall not commence until the
Premises are available for occupancy by Tenant. If delay in possession is
due to work, changes or decorations being made by or for Tenant, or is
otherwise caused by Tenant, there shall be no rent abatement and the Rent
shall commence on the date specified in this Lease. If permission is given
to Tenant to occupy the Premises or other Premises prior to the date
specified as the commencement of the Term, such occupancy shall be deemed to
be pursuant to the terms of this Lease, except that the parties shall
separately agree as to the obligation of Tenant to pay Rent for such
occupancy. The provisions of this Article are intended to constitute an
"express provision to the contrary" within the meaning of Section 223(a), New
York Real Property Law.
<B>ARTICLE 18</B>
<B><U>QUIET ENJOYMENT</U></B>
18.01 Landlord covenants that if Tenant pays the Rent and
performs all of Tenant's other obligations under this Lease, Tenant may
peaceably and quietly enjoy the Premises, subject to the terms, covenants and
conditions of this Lease and to the ground leases, underlying leases and
mortgages hereinbefore mentioned.
<B>ARTICLE 19</B>
<B><U>RIGHT OF ENTRY</U></B>
19.01 Tenant shall permit Landlord to erect, construct and
maintain pipes, conduits and shafts in and through the Premises provided that
the same are located within walls or above hung ceilings and, if not
reasonably practicable, otherwise concealed. Landlord or its agents shall
have the right to enter or pass through the Premises at all times, by master
key and, in the event of an emergency, by reasonable force or otherwise, to
examine the same, and to make such repairs, alterations or additions as it
may deem necessary or desirable to the Premises or the Building, and to take
all material into and upon the Premises that may be required therefor. Such
entry and work shall not constitute an eviction of Tenant in whole or in
part, shall not be grounds for any abatement of rent, and shall impose no
liability on Landlord by reason of inconvenience or injury to Tenant's
business. Landlord shall have the right at any time, without the same
constituting an actual or constructive eviction, and without incurring any
liability to Tenant, to change the arrangement and/or location of entrances
or passageways, windows, corridors, elevators, stairs, toilets, or other
public parts of the Building, and to change the designation of rooms and
suites and the name or number by which the Building is known. Landlord shall
use reasonable efforts to minimize interference with Tenant's normal business
activities within the Premises provided, however, that Tenant acknowledges
and agrees that at, Landlord's election, all such work shall be performed on
normal business days during normal business hours, unless Tenant requests and
pays Landlord incremental difference in cost for overtime or premium labor.
<B>ARTICLE 20</B>
<B><U>INDEMNITY</U></B>
20.01 Tenant shall indemnify, defend and save Landlord harmless
from and against any liability or expense arising from the use or occupation
of the Premises by Tenant, or anyone on the Premises with Tenant's permission.
<B>ARTICLE 21</B>
<B><U>LANDLORD'S LIABILITY, ETC.</U></B>
21.01 This Lease and the obligations of Tenant hereunder shall
not in any way be affected because Landlord is unable to fulfill any of its
obligations or to supply any service, by reason of strike or other cause not
within Landlord's control. Landlord shall have the right, without incurring
any liability to Tenant, to stop any service because of accident or
emergency, or for repairs, alterations or improvements, necessary or
desirable in the judgment of Landlord, until such repairs, alterations or
improvements shall have been completed. Landlord shall not be liable to
Tenant or anyone else, for any loss or damage to person, property or
business; nor shall Landlord be liable for any latent defect in the Premises
or the Building. Neither the partners, entities or individuals comprising
the Landlord, nor the agents, directors, or officers or employees of any of
the foregoing shall be liable for the performance of the Landlord's
obligations hereunder. Tenant agrees to look solely to Landlord's estate and
interest in the land and Building, or the lease of the Building or of the
land and Building, and the Premises, for the satisfaction of any right or
remedy of Tenant for the collection of a judgement (or other judicial
process) requiring the payment of money by Landlord, and in the event of any
liability by Landlord, and no other property or assets of Landlord or of any
of the aforementioned parties shall be subject to levy, execution or other
enforcement procedure for the satisfaction of Tenant's remedies under or with
respect to this Lease, the relationship of Landlord and Tenant hereunder, or
Tenant's use and occupancy of the Premises or any other liability of Landlord
to Tenant.
21.02 If Landlord fails to make any repair or provide any service
which Landlord is obligated to perform or provide under this Lease and, as a
result thereof, Tenant shall be not able to use and shall have discontinued
its occupancy of all or any portion of the Premises for a period of ten (10)
consecutive business days or more after notice thereof to Landlord then,
except as provided in Article 11 hereof, Tenant shall be entitled to an
abatement of Rent with respect to the Rent allocable to such portion of the
Premises which is not usable and is unoccupied for each day after said ten
(10) consecutive business day period until said repair is made or services
restored by Landlord provided further, however, Tenant shall not be entitled
to an abatement of Rent in the event that such failure results from (i) any
installation, alteration or improvement performed by or on behalf of Tenant;
(ii) Tenant's failure to perform its obligations hereunder; (iii) the
negligence or tortious conduct of Tenant, its agents, servants, employees or
invitees; (iv) force majeure, labor troubles or the inability to obtain
materials or (vi) any other reason beyond the reasonable control of Landlord.
<B>ARTICLE 22</B>
<B><U>CONDITION OF PREMISES</U></B>
22.01 The parties acknowledge that Tenant has inspected the
Premises and the Building and is fully familiar with the physical condition
thereof and Tenant agrees to accept the Premises at the commencement of the
Term in its then "as is" condition. Tenant acknowledges and agrees that
Landlord shall have no obligation to do any work in or to the Premises in
order to make it suitable and ready for occupancy and use by Tenant, except
to the extent expressly provided for in this Article 22.
22.02 Annexed hereto as Exhibit D is a workletter for the
construction of six (6) new offices in the Premises ("Tenant's Initial
Alteration Work"). Landlord shall perform Tenant's Initial Alteration Work
in a building standard manner using building standard materials with
reasonable dispatch, subject to delay by causes beyond its control or by the
action or inaction of Tenant. Tenant acknowledges and agrees that the
performance of Tenant's Initial Alteration Work is expressly conditioned upon
compliance by Tenant with all the terms and conditions of this Lease,
including payment of Rent.
22.03 Any changes in or additions to Tenant's Initial Alteration
Work which shall be consented to by Landlord, and further changes in or
additions to the Premises after Tenant's Initial Alteration Work has been
completed which shall be so consented to (collectively, "Change Orders")
shall be made by Landlord, or its agents, but shall be paid for by Tenant
promptly when billed at cost plus 1 1/4% for insurance, 10% for overhead and
10% for general conditions, and in the event of the failure of Tenant so to
pay for said changes or additions, Landlord at its option may consider the
cost thereof, plus the above percentages, as Additional Rent payable by
Tenant and collectible as such hereunder, as part of the rent for the next
ensuing months.
22.04 Notwithstanding anything contained herein to the contrary,
(i) Tenant's Initial Alteration Work shall be deemed to be substantially
completed notwithstanding that (i) minor or non-material details of
construction, mechanical adjustment or decoration remain to be performed,
provided, that said "Punch List Items" shall be completed by Landlord within
a reasonable time thereafter or (ii) at Tenant's request, a portion of
Tenant's Initial Alteration Work is incomplete because construction
scheduling requires that such work be done after incomplete finishing or
after other work to be done by or on behalf of Tenant is completed. If
Tenant's Initial Alteration Work is not substantially completed and/or is
delayed by reason of a Tenant Delay (as such term is hereinafter defined),
then the Commencement Date shall be accelerated (and Tenant shall pay as
hereinbefore provided Fixed Annual Rent and Additional Rent on a per diem
basis upon demand) one (1) day for each day of delay of Landlord's
substantial completion caused by a Tenant Delay. For purposes hereof,
"Tenant Delay" shall mean any delay in the substantial completion of Tenant's
Initial Alteration Work caused by any act, omission of, or any change to of
Tenant's Initial Alteration Work requested by, Tenant, its agents, designers,
architects, engineers, consultants, contractors, invitees or employees or any
other party acting or apparently acting on Tenant's behalf.
22.05 Notwithstanding anything to the contrary contained herein,
in addition to the payment by Tenant to Landlord of Fixed Annual Rent and
Additional Rent hereunder, Tenant shall pay to Landlord as additional Fixed
Annual Rent hereunder all costs, fees and expenses incurred by Landlord in
connection with the performance of Tenant's Initial Alteration Work
(including, without limitation, the cost of all Change Orders, a supervisory
fee, insurance and overhead, but excluding any costs incurred by Landlord for
the preparation of architectural plans) together with interest thereon at the
rate of ten (10%) per annum, which shall be payable in thirty-six (36) equal
monthly installments of principal and interest (calculated by Landlord in the
manner of a thirty-six (36) month self-liquidating mortgage loan where the
outstanding principal balance equals such amount) commencing as of the
Commencement Date.
<B>ARTICLE 23</B>
<B><U>CLEANING</U></B>
23.01 Landlord shall cause the Premises to be kept clean in
accordance with Landlord's customary standards for the Building, a copy of
which is annexed hereto and made a part hereof as Exhibit "C", provided they
are kept in order by Tenant. Landlord, its cleaning contractor and their
employees shall have after-hours access to the Premises and the use of
Tenant's light, power and water in the Premises as may be reasonably required
for the purpose of cleaning the Premises. Landlord may remove Tenant's
extraordinary refuse from the Building and Tenant shall pay the cost thereof.
23.02 Tenant acknowledges that Landlord has designated a cleaning
contractor for the Building. Tenant agrees to employ said cleaning
contractor or such other contractor as Landlord shall from time to time
designate (the "Building Cleaning Contractor") to perform all cleaning
services required under the Lease to be performed by Tenant within the
Premises and for any other waxing, polishing, and other cleaning and
maintenance work of the Premises and Tenant's furniture, fixtures and
equipment (collectively, "Tenant Cleaning Services") provided that the prices
charged by said contractor are comparable to the prices customarily charged
by other reputable cleaning contractors employing union labor in midtown
Manhattan for the same level and quality of service. Tenant acknowledges that
it has been advised that the cleaning contractor for the Building may be a
division or affiliate of Landlord. Tenant agrees that it shall not employ
any other cleaning and maintenance contractor, nor any individual, firm or
organization for such purpose, without Landlord's prior written consent. In
the event that Landlord and Tenant cannot agree on whether the prices then
being charged by the Building Cleaning Contractor for such cleaning services
are comparable to those charged by other reputable contractors as herein
provided, then Landlord and Tenant shall each obtain two (2) bona fide bids
for such services from reputable cleaning contractors performing such
services in comparable buildings in midtown Manhattan employing union labor,
and the average of the four bids thus obtained shall be the standard of
comparison. In the event that the Building Cleaning Contractor does not
agree to perform such cleaning services for Tenant at such average price,
Landlord shall not unreasonably withhold its consent to the performance of
Tenant Cleaning Services by a reputable cleaning contractor designated by
Tenant employing union labor with the proper jurisdictional qualifications
provided, however, that, without limitation, Landlord's experience with such
contractor or any criminal proceedings pending or previously filed against
such contractor may form a basis upon which Landlord may withhold or withdraw
its consent.
<B>ARTICLE 24</B>
<B><U>JURY WAIVER</U></B>
24.01 Landlord and Tenant hereby waive trial by jury in any
action, proceeding or counterclaim involving any matter whatsoever arising
out of or in any way connected with this Lease, the relationship of Landlord
and Tenant, Tenant's use or occupancy of the Premises or involving the right
to any statutory relief or remedy. Tenant will not interpose any
counterclaim of any nature in any summary proceeding.
<B>ARTICLE 25</B>
<B><U>NO WAIVER, ETC.</U></B>
25.01 No act or omission of Landlord or its agents shall
constitute an actual or constructive eviction, unless Landlord shall have
first received written notice of Tenant's claim and shall have had a
reasonable opportunity to meet such claim. In the event that any payment
herein provided for by Tenant to Landlord shall become overdue for a period
in excess of ten (10) days, then at Landlord's option a "late charge" shall
become due and payable to Landlord, as Additional Rent, from the date it was
due until payment is made, at the following rates: for individual and
partnership lessees, said late charge shall be computed at the maximum legal
rate of interest; for corporate or governmental entity lessees the late
charge shall be computed at two percent per month unless there is an
applicable maximum legal rate of interest which then shall be used. No act
or omission of Landlord or its agents shall constitute an acceptance of a
surrender of the Premises, except a writing signed by Landlord. The delivery
or acceptance of keys to Landlord or its agents shall not constitute a
termination of this Lease or a surrender of the Premises. Acceptance by
Landlord of less than the Rent herein provided shall at Landlord's option be
deemed on account of earliest Rent remaining unpaid. No endorsement on any
check, or letter accompanying Rent, shall be deemed an accord and
satisfaction, and such check may be cashed without prejudice to Landlord. No
waiver of any provision of this Lease shall be effective, unless such waiver
be in writing signed by the party to be charged. In no event shall Tenant be
entitled to make, nor shall Tenant make any claim, and Tenant hereby waives
any claim for money damages (nor shall Tenant claim any money damages by way
of set-off, counterclaim or defense) based upon any claim or assertion by
Tenant that Landlord had unreasonably withheld, delayed or conditioned its
consent or approval to any request by Tenant made under a provision of this
Lease. Tenant's sole remedy shall be an action or proceeding to enforce any
such provision, or for specific performance or declaratory judgment. Tenant
shall comply with the rules and regulations contained in this Lease, and any
reasonable modifications thereof or additions thereto. Landlord shall not be
liable to Tenant for the violation of such rules and regulations by any other
tenant. Failure of Landlord to enforce any provision of this Lease, or any
rule or regulation, shall not be construed as the waiver of any subsequent
violation of a provision of this Lease, or any rule or regulation.
Landlord will enforce all rules and regulations in a non-discriminatory
manner. This Lease shall not be affected by nor shall Landlord in any way be
liable for the closing, darkening or bricking up of windows in the Premises,
for any reason, including as the result of construction on any property of
which the Premises are not a part or by Landlord's own acts.
<B>ARTICLE 26</B>
<B><U>OCCUPANCY AND USE BY TENANT</U></B>
26.01 If this Lease is terminated because of Tenant's default
hereunder, then, in addition to Landlord's rights of re-entry, restoration,
preparation for and rerental, and anything elsewhere in this Lease to the
contrary notwithstanding, all Rent and Additional Rent reserved in this Lease
from the date of such breach to the expiration date of this Lease shall
become immediately due and payable to Landlord and Landlord shall retain its
right to judgment on and collection of Tenant's aforesaid obligation to make
a single payment to Landlord of a sum equal to the amount by which the Fixed
Annual Rent and Additional Rent payable hereunder for the period to the
Expiration Date from the date of such breach together with all reasonable
out-of-pocket expenses of Lessor in obtaining possession of, and in effecting
the reletting of the premises including, without limitation, alteration
costs, commissions, concessions and legal fees, exceeds the then fair and
reasonable rental value of the Premises for the same period, both discounted
at the prime rate of interest charged by Chase Manhattan Bank, New York, (or
the successor thereto), on the date of such breach to present worth. In no
event shall Tenant be entitled to a credit or repayment for rerental income
which exceeds the sums payable by Tenant hereunder or which covers a period
after the original Term of this Lease.
<B>ARTICLE 27</B>
<B><U>NOTICES</U></B>
27.01 Any bill, notice or demand from Landlord to Tenant, may be
delivered personally at the Premises or sent by registered or certified mail
or by any nationally recognized overnight delivery service and addressed to
Tenant at the Premises, after the date upon which Tenant first commences
occupancy of the Premises, or at the address first set forth herein prior
thereto. Such bill, notice or demand shall be deemed to have been given at
the time of delivery, mailing or receipt by such delivery service. Any
notice, request or demand from Tenant to Landlord must be sent by registered
or certified mail to the last address designated in writing by Landlord.
<B>ARTICLE 28</B>
<B><U>WATER</U></B>
28.01 Tenant shall pay the amount of Landlord's cost for all
excessive water used by Tenant for any purpose other than ordinary pantry and
lavatory uses, and any sewer rent or tax based thereon. Landlord may install
a water meter to measure Tenant's water consumption for all purposes and
Tenant agrees to pay for the installation and maintenance thereof and for
water consumed as shown on said meter at Landlord's cost therefor plus
fifteen (15%) percent. If water is made available to Tenant in the Building
or the Premises through a meter which also supplies other Premises, or
without a meter, then Tenant shall pay to Landlord a reasonable charge per
month for water. Landlord reserves the right to discontinue water service to
the Premises if either the quantity or character of such service is changed
or is no longer available or suitable for Tenant's requirements or for any
other reason without releasing Tenant from any liability under this Lease and
without Landlord or Landlord's agent incurring any liability for any damage
or loss sustained by Tenant by such discontinuance of service.
<B>ARTICLE 29</B>
<B><U>SPRINKLER SYSTEM</U></B>
29.01 If there shall be a "sprinkler system" in the Premises for
any period during this Lease such sprinkler system is damaged by any act or
omission of Tenant or its agents, employees, licensees or visitors, Tenant
shall restore the system to good working condition at its own expense. If
the New York Board of Fire Underwriters, the New York Fire Insurance
Exchange, the Insurance Services Office, or any governmental authority
requires the installation of, or any alteration to a sprinkler system by
reason of Tenant's particular manner of occupancy or use of the Premises,
including any alteration necessary to obtain the full allowance for a
sprinkler system in the fire insurance rate of Landlord, or for any other
reason, Tenant shall make such installation or alteration promptly, and at
its own expense.
<B>ARTICLE 30
<U>HEAT, ELEVATOR, ETC.</U></B>
30.01 Landlord shall provide elevator service during all usual
business hours including Saturdays until 1 P.M., except on Sundays, State
holidays, Federal holidays, or Building Service Employees Union Contract
holidays. Landlord shall furnish heat to the Premises during the same hours
on the same days in the cold season in each year. If the elevators in the
Building are manually operated, Landlord may convert to automatic elevators
at any time, without in any way affecting Tenant's obligations hereunder.
Landlord shall provide a minimum of one (1) passenger elevator from the lobby
of the Building to the Premises twenty-four (24) hours per day, seven (7)
days per week, subject to all other applicable provisions of the Lease.
<B>ARTICLE 31
<U>SECURITY DEPOSIT</U></B>
31.01 Tenant has deposited with Landlord the sum of $ 129,623.92
as security (the "Security") for the performance by Tenant of the terms of
this Lease. Landlord may use any part of the Security to satisfy any default
of Tenant and any expenses arising from such default, including but not
limited to legal fees and any damages or rent deficiency before or after
re-entry by Landlord. Tenant shall, upon demand, deposit with Landlord the
full amount so used, and/or any amount not so deposited by Tenant, in order
that Landlord shall have the full Security deposit on hand at all times
during the term of this Lease. If Tenant shall comply fully with the terms
of this Lease, the Security shall be returned to Tenant after the date fixed
as the end of the lease. In the event of a sale or lease of the Building
containing the Premises, Landlord may transfer the Security to the purchaser
or tenant, and Landlord shall thereupon be released from all liability for
the return of the Security. This provision shall apply to every transfer or
assignment of the Security to a new Landlord. Tenant shall have no legal
power to assign or encumber the Security herein described. Landlord agrees
to deposit the Security in an interest bearing account in a bank located in
New York State. To the extent not prohibited by law, Landlord shall be
entitled to receive and retain as an administrative expense that portion of
the interest received on such account which represents the maximum fee
permitted under applicable law, which fee Landlord shall have the right to
withdraw from time to time, as Landlord may determine. The balance of the
interest shall be added to and held as part of the Security subject to and in
accordance with the provisions of this Article. Landlord shall not be
required to credit Tenant with any interest for any period during which
Landlord does not receive interest on the Security.
<B>ARTICLE 32
<U>TAX ESCALATION</U></B>
32.01 Tenant shall pay to Landlord, as Additional Rent, tax
escalation in accordance with this Article:
(a) For purposes of this Lease, Landlord and Tenant acknowledge
and agree that the rentable square foot area of the Premises shall be deemed
to be 10,495 square feet.
(b) For the purpose of this Article, the following definitions
shall apply:
(i) The term "Tenant's Share", for purposes of computing tax
escalation, shall mean 0.943 percent (0.943%). Tenant's Share has been
computed on the basis of a fraction, the numerator of which is the rentable
square foot area of the Premises and the denominator of which is the total
rentable square foot area of the office and commercial space in the Building
Project. The parties acknowledge and agree that the total rentable square
foot area of the office and commercial space in the Building Project shall be
deemed to be 1,112,424 sq. ft.
(ii) The term the "Building Project" shall mean the aggregate
combined parcel of land on a portion of which are the improvements of which
the Premises form a part, with all the improvements thereon, said
improvements being a part of the block and lot for tax purposes which are
applicable to the aforesaid land.
(iii) The "Base Tax Year" shall mean the New York City fiscal tax
year commencing on July 1, 2001 through June 30, 2002.
(iv) The term "Comparative Year" shall mean the twelve (12) month
period following the Base Tax Year, and each subsequent period of twelve (12)
months thereafter.
(v) The term "Real Estate Taxes" shall mean the total of all
taxes and special or other assessments levied, assessed or imposed at any
time by any governmental authority upon or against the Building Project
including, without limitation, any tax or assessment levied, assessed or
imposed at any time by any governmental authority in connection with the
receipt of income or rents from said Building Project to the extent that same
shall be in lieu of all or a portion of any of the aforesaid taxes or
assessments, or additions or increases thereof, upon or against said Building
Project. If, due to a future change in the method of taxation or in the
taxing authority, or for any other reason, a franchise, income, transit,
profit or other tax or governmental imposition, however designated, shall be
levied against Landlord in substitution in whole or in part for the Real
Estate Taxes, or in lieu of additions to or increases of said Real Estate
Taxes, then such franchise, income, transit, profit or other tax or
governmental imposition shall be deemed to be included within the definition
of "Real Estate Taxes" for the purposes hereof.
(vi) Where more than one assessment is imposed by the City of New
York for any tax year, whether denominated an "actual assessment" or a
"transitional assessment" or otherwise, then the phrases herein "assessed
value" and "assessments" shall mean whichever of the actual, transitional or
other assessment is designated by the City of New York as the taxable
assessment for that tax year.
32.02 In the event that the Real Estate Taxes payable for any
Comparative Year shall exceed the amount of the Real Estate Taxes payable
during the Base Tax Year, Tenant shall pay to Landlord, as Additional Rent
for such Comparative Year, an amount equal to Tenant's Share of the excess.
Before or after the start of each Comparative Year, Landlord shall furnish to
Tenant a statement of the Real Estate Taxes payable during the Base Tax
Year. If the Real Estate Taxes payable for such Comparative Year exceed the
Real Estate Taxes payable during the Base Tax Year, Additional Rent for such
Comparative Year, in an amount equal to Tenant's Share of the excess, shall
be due from Tenant to Landlord, and such Additional Rent shall be payable by
Tenant to Landlord within thirty (30) days after receipt of the aforesaid
statement. The benefit of any discount for any early payment or prepayment
of Real Estate Taxes shall accrue solely to the benefit of Landlord, and such
discount shall not be subtracted from the Real Estate Taxes payable for any
Comparative Year. In addition to the foregoing, Tenant shall pay to
Landlord, on demand, as Additional Rent, a sum equal to Tenant's Share of any
business improvement district assessment payable by the Building Project.
32.03 Should the Real Estate Taxes payable during the Base Tax
Year be reduced by final determination of legal proceedings, settlement or
otherwise, then, the Real Estate Taxes payable during the Base Tax Year shall
be correspondingly revised, the Additional Rent theretofore paid or payable
hereunder for all Comparative Years shall be recomputed on the basis of such
reduction, and Tenant shall pay to Landlord as Additional Rent, within ten
(10) days after being billed therefor, any deficiency between the amount of
such Additional Rent as theretofore computed and the amount thereof due as
the result of such recomputations.
32.04 If, after Tenant shall have made a payment of Additional
Rent under Section 32.02, Landlord shall receive a refund of any portion of
the Real Estate Taxes payable for any Comparative Year after the Base Tax
Year on which such payment of Additional Rent shall have been based, as a
result of a reduction of such Real Estate Taxes by final determination of
legal proceedings, settlement or otherwise, Landlord shall within ten (10)
days after receiving the refund pay to Tenant Tenant's Share of the refund
less Tenant's Share of expenses (including attorneys' and appraisers' fees)
incurred by Landlord in connection with any such application or proceeding.
In addition to the foregoing, Tenant shall pay to Landlord, as Additional
Rent, within ten (10) days after Landlord shall have delivered to Tenant a
statement therefor, Tenant's Share of all out-of-pocket expenses reasonably
incurred by Landlord in reviewing or contesting the validity or amount of any
Real Estate Taxes or for the purpose of obtaining reductions in the assessed
valuation of the Building Project prior to the billing of Real Estate Taxes,
including without limitation, the reasonable fees and disbursements of
attorneys, third party consultants, experts and others.
32.05 The statements of the Real Estate Taxes to be furnished by
Landlord as provided above shall be certified by Landlord and shall
constitute a final determination as between Landlord and Tenant of the Real
Estate Taxes for the periods represented thereby, unless Tenant within thirty
(30) days after they are furnished shall give a written notice to Landlord
that it disputes their accuracy or their appropriateness, which notice shall
specify the particular respects in which the statement is inaccurate or
inappropriate. If Tenant shall so dispute said statement then, pending the
resolution of such dispute, Tenant shall pay the Additional Rent to Landlord
in accordance with the statement furnished by Landlord.
32.06 In no event shall the Fixed Annual Rent under this Lease be
reduced by virtue of this Article.
32.07 If the Commencement Date of the Term of this Lease is not
the first day of the first Comparative Year, then the Additional Rent due
hereunder for such first Comparative Year shall be a proportionate share of
said Additional Rent for the entire Comparative Year, said proportionate
share to be based upon the length of time that the lease Term will be in
existence during such first Comparative Year. Upon the date of any
expiration or termination of this Lease (except termination because of
Tenant's default) whether the same be the date hereinabove set forth for the
expiration of the Term or any prior or subsequent date, a proportionate share
of said Additional Rent for the Comparative Year during which such expiration
or termination occurs shall immediately become due and payable by Tenant to
Landlord, if it was not theretofore already billed and paid. The said
proportionate share shall be based upon the length of time that this Lease
shall have been in existence during such Comparative Year. Landlord shall
promptly cause statements of said Additional Rent for that Comparative Year
to be prepared and furnished to Tenant. Landlord and Tenant shall thereupon
make appropriate adjustments of amounts then owing.
32.08 Landlord's and Tenant's obligations to make the adjustments
referred to in Section 32.07 above shall survive any expiration or
termination of this Lease. Any delay or failure of Landlord in billing any
tax escalation hereinabove provided shall not constitute a waiver of or in
any way impair the continuing obligation of Tenant to pay such tax escalation
hereunder.
<B>ARTICLE 33
<U>RENT CONTROL</U></B>
33.01 In the event the Fixed Annual Rent or Additional Rent or
any part thereof provided to be paid by Tenant under the provisions of this
Lease during the demised term shall become uncollectible or shall be reduced
or required to be reduced or refunded by virtue of any Federal, State, County
or City law, order or regulation, or by any direction of a public officer or
body pursuant to law, or the orders, rules, code or regulations of any
organization or entity formed pursuant to law, whether such organization or
entity be public or private, then Landlord, at its option, may at any time
thereafter terminate this Lease, by not less than thirty (30) days' written
notice to Tenant, on a date set forth in said notice, in which event this
Lease and the term hereof shall terminate and come to an end on the date
fixed in said notice as if the said date were the date originally fixed
herein for the termination of the demised term. Landlord shall not have the
right so to terminate this Lease if Tenant within such period of thirty (30)
days shall in writing lawfully agree that the rentals herein reserved are a
reasonable rental and agree to continue to pay said rentals, and if such
agreement by Tenant shall then be legally enforceable by Landlord.
<B>ARTICLE 34
<U>SUPPLIES</U></B>
34.01 Only Landlord or any one or more persons, firms, or
corporations authorized in writing by Landlord shall be permitted to furnish
laundry, linens, towels, drinking water, water coolers, ice and other similar
supplies and services to tenants and licensees in the Building. Landlord may
fix, in its own absolute discretion, from time to time, the hours during
which and the regulations under which such supplies and services are to be
furnished. Landlord expressly reserves the right to act as or to designate,
from time to time, an exclusive supplier of all or any one or more of the
said supplies and services; and Landlord furthermore expressly reserves the
right to exclude from the Building any person, firm or corporation attempting
to furnish any of said supplies or services but not so designated by Landlord.
34.02 Only Landlord or any one or more persons, firms or
corporations authorized in writing by Landlord shall be permitted to sell,
deliver or furnish any food or beverages whatsoever for consumption within
the Premises or elsewhere in the Building. Landlord expressly reserves the
right to act as or to designate from time to time an exclusive supplier or
suppliers of such food and beverages. Landlord further expressly reserves
the right to exclude from the Building any person, firm or corporation
attempting to deliver or purvey any such food or beverages, but not so
designated by Landlord. It is understood, however, that Tenant or its
regular office employees may personally bring food or beverages into the
Building for consumption within the Premises by the said employees, but not
for resale or for consumption by any other tenant. Landlord may fix in its
absolute discretion from time to time the hours during which, and the
regulations under which, food and beverages may be brought into the Building
by Tenant or its regular employees.
<B>ARTICLE 35
<U>AIR CONDITIONING</U></B>
35.01 Tenant shall be permitted to use the equipment presently
supplying air-conditioning service to the Premises (the "Existing HVAC
Equipment") Monday to Friday from 8:00 a.m. to 6:00 p.m. during the
Building's "Cooling Season" (which is currently May 15 through October 15)
subject to and in accordance with the provisions of this Article. Tenant
acknowledges and agrees that air-conditioning service to the Premises shall
be supplied through equipment operated, maintained and repaired by Tenant and
that Landlord has no obligation to operate, maintain or to repair the said
equipment or to supply air-conditioning service to the Premises. The
Existing HVAC Equipment and all other air conditioning systems, equipment and
facilities hereafter located in or servicing the Premises (the "Supplemental
Systems") including, without limitation, the ducts, dampers, registers,
grilles and appurtenances utilized in connection with both the Existing HVAC
Equipment and the Supplemental Systems (collectively hereinafter referred to
as the "HVAC System"), shall be maintained, repaired and operated by Tenant
in compliance with all present and future laws and regulations relating
thereto at Tenant's sole cost and expense. Tenant shall pay for all
electricity consumed in the operation of the HVAC System, and Tenant's
proportionate share of the electric current (and/or water, gas and steam) for
the production of chilled and/or condenser water and its supply to the
Premises, if applicable, which shall become the obligation of Tenant subject
to the terms of Article 41 of this Lease. Tenant shall pay for all parts and
supplies necessary for the proper operation of the HVAC System (and any
restoration or replacement by Tenant of all or any part thereof shall be in
quality and class at least equal to the original work or installations);
provided, however, that Tenant shall not alter, modify, remove or replace the
HVAC System, or any part thereof, without Landlord's prior written consent.
Landlord agrees that the Existing HVAC Equipment shall be (or is) of
sufficient capacity to accommodate normal office usage and occupancy density
excluding special usage areas (i.e., computer rooms, conference rooms,
cafeteria/lunchroom or any special usage which subjects a portion or the
entire Premises to a high density of office personnel and/or heat generating
equipment, machines or appliances).
35.02 Without limiting the generality of the foregoing, Tenant
shall, at its own cost and expense, (a) cause to be performed all maintenance
of the HVAC System, including all repairs and replacements thereto, and (b)
commencing as of the date upon which Tenant shall first occupy the Premises
for the conduct of its business, and thereafter throughout the Term of the
Lease, maintain in force and provide a copy of same to Landlord an air
conditioning service repair and full service maintenance contract covering
the HVAC System in form satisfactory to Landlord with an air conditioning
contractor or servicing organization approved by Landlord. All such
contracts shall provide for the thorough overhauling of the HVAC System at
least once each year during the Term of this Lease and shall expressly state
that (i) it shall be an automatically renewing contract terminable upon not
less than thirty (30) days prior written notice to the Landlord (sent by
certified mail, return receipt requested) and (ii) the contractor providing
such service shall maintain a log at the Premises detailing the service
provided during each visit pursuant to such contract. Tenant shall keep such
log at the Premises and permit Landlord to review same promptly after
Landlord's request. The HVAC System is and shall at all times remain the
property of Landlord, and at the expiration or sooner termination of the
Lease, Tenant shall surrender to Landlord the HVAC System in good working
order and condition, subject to normal wear and tear and shall deliver to
Landlord a copy of the service log. In the event that Tenant fails to obtain
the contract required herein or perform any of the maintenance or repairs
required hereunder, Landlord shall have the right, but not the obligation, to
procure such contract and/or perform any such work and charge the Tenant as
Additional Rent hereunder the cost of same plus an administrative fee equal
to fifteen percent (15%) of such cost which shall be paid for by Tenant on
demand.
35.03 Tenant shall pay to Landlord a fee for Landlord's
maintenance and repair of the Existing HVAC Equipment (the "HVAC Repair Fee")
at the rate of $1,200.00 per annum which shall be added to and payable in
monthly installments at the same time and in the same manner as Fixed Annual
Rent under this Lease, subject to future increases as hereinafter set forth.
On each anniversary of the Commencement Date of the Term of this Lease, the
HVAC Repair Fee shall be increased by three (3%) percent on the HVAC Repair
Fee payable during the immediately preceding twelve (12) month period,
compounded annually.
<B>ARTICLE 36
<U>SHORING</U></B>
36.01 Tenant shall permit any person authorized to make an
excavation on land adjacent to the Building containing the Premises to do any
work within the Premises necessary to preserve the wall of the Building from
injury or damage, and Tenant shall have no claim against Landlord for damages
or abatement of rent by reason thereof.
<B>ARTICLE 37
<U>EFFECT OF CONVEYANCE, ETC.</U></B>
37.01 If the Building containing the Premises shall be sold,
transferred or leased, or the lease thereof transferred or sold, Landlord
shall be relieved of all future obligations and liabilities hereunder and the
purchaser, transferee or tenant of the Building shall be deemed to have
assumed and agreed to perform all such obligations and liabilities of
Landlord hereunder. In the event of such sale, transfer or lease, Landlord
shall also be relieved of all existing obligations and liabilities hereunder,
provided that the purchaser, transferee or tenant of the Building assumes in
writing such obligations and liabilities.
<B>ARTICLE 38
<U>RIGHTS OF SUCCESSORS AND ASSIGNS</U></B>
38.01 This Lease shall bind and inure to the benefit of the
heirs, executors, administrators, successors, and, except as otherwise
provided herein, the assigns of the parties hereto. If any provision of any
Article of this Lease or the application thereof to any person or
circumstances shall, to any extent, be invalid or unenforceable, the
remainder of that Article, or the application of such provision to persons or
circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected thereby, and each provision of said
Article and of this Lease shall be valid and be enforced to the fullest
extent permitted by law.
<B>ARTICLE 39
<U>CAPTIONS</U></B>
39.01 The captions herein are inserted only for convenience, and
are in no way to be construed as a part of this Lease or as a limitation of
the scope of any provision of this Lease.
<B>ARTICLE 40
<U>BROKERS</U></B>
40.01 Tenant covenants, represents and warrants that Tenant has
had no dealings or negotiations with any broker or agent in connection with
the consummation of this Lease other than SL Green Realty Leasing LLC and
Williams Real Estate Co., Inc. (collectively, the "Brokers") and Tenant
covenants and agrees to defend, hold harmless and indemnify Landlord from and
against any and all cost, expense (including reasonable attorneys' fees) or
liability for any compensation, commissions or charges claimed by any broker
or agent with respect to this Lease or the negotiation thereof.
40.02 Landlord represents and warrants to Tenant that it did not
consult or negotiate with any broker, finder, or consultant with regard to
the Premises other than the Brokers, and that no other broker, finder or
consultant participated with Landlord in procuring this Lease. Landlord
hereby indemnifies and agrees to defend and hold Tenant, its agents, servants
and employees harmless from any suit, action, proceeding, controversy, claim
or demand whatsoever at law or in equity that may be instituted against
Tenant by anyone with whom Landlord has dealt for recovery of compensation or
damages for procuring this Lease.
<B>ARTICLE 41
<U>ELECTRICITY</U></B>
41.01 Tenant acknowledges and agrees that electric service shall
be supplied to the Premises on a "rent inclusion basis" in accordance with
the provisions of this Article 41.
41.02 Electricity and electric service, as used herein, shall
mean any element affecting the generation, transmission, and/or distribution
or redistribution of electricity, including but not limited to services which
facilitate the distribution of service.
41.03 If and so long as Landlord provides electricity to the
Premises on a rent inclusion basis, Tenant agrees that the Fixed Annual Rent
shall be increased by the amount of the Electricity Rent Inclusion Factor
("ERIF"), as hereinafter defined. Tenant acknowledges and agrees (i) that
the Fixed Annual Rent hereinabove set forth in this Lease does not yet, but
is to include an ERIF of $3.00 per rentable square foot to compensate
Landlord for electrical wiring and other installations necessary for, and for
its obtaining and making available to Tenant the redistribution of electric
current as an additional service, and Tenant shall pay for Tenant's Share of
Building electric current (i.e., all electricity used in lighting the public
and service areas, and in operating all the service facilities, of the
Building and the parties acknowledge and agree that twenty percent (20%) of
the Building's payment to the public utility or other service providers for
the purchase of electricity shall be deemed to be payment for Building
electric current) which shall be paid for by Tenant in accordance with
provisions hereof; and (ii) that said ERIF, which shall be subject to
periodic adjustments as hereinafter provided, has been partially based upon
an estimate of the Tenant's adjusted electrical load, in whatever manner
delivered to Tenant, which shall be deemed to be the demand (KW), and hours
of use thereof, which shall be deemed to be the energy (KWH), for Existing
HVAC Equipment, personal and laptop computers, server, ordinary lighting and
light office equipment and the operation of the usual small business
machines, including Xerox or other copying machines (such lighting and
equipment are hereinafter called "Ordinary Equipment") during ordinary
business hours ("Ordinary Business Hours") shall be deemed to mean 50 hours
per week), with Landlord providing an average adjusted load of 41/2watts of
electricity for all purposes per rentable square foot. Any installation and
use of equipment other than Ordinary Equipment and/or any adjusted load
and/or energy usage by Tenant in excess of the foregoing and the charge for
Tenant's Share of Building electric current shall result in adjustment of the
ERIF as hereinafter provided. For purposes of this Article, the rentable
square foot area of the Premises shall be deemed to be 10,495 square feet.
41.04 If the cost to Landlord of electricity shall have been, or
shall be, increased subsequent to February 1, 2002 (whether such change
occurs prior to or during the term of this Lease), by change in Landlord's
electric rates or service classifications, or electricity charges, including
changes in market prices, or by an increase, subsequent to the last such
electric rate or service classification change or market price change, in
fuel adjustments or charges of any kind, or by taxes, imposed on Landlord's
electricity purchases or on Landlord's electricity redistribution, or for any
other such reason, then the aforesaid ERIF portion of the fixed annual rent
shall be changed in the same percentage as any such change in cost due to
changes in electric rates, service classifications or market prices, and,
also Tenant's payment obligation, for electricity redistribution, shall
change from time to time so as to reflect any such increase in fuel
adjustments or charges, and such taxes. Any such percentage change in
Landlord's cost due to change in Landlord's electric rate or service
classifications or market prices, shall be computed on the basis of the
average consumption of electricity for the Building for the twelve full
months immediately prior to the rate change or other such changes in cost,
energy and demand, and any changed methods of or rules on billing for same,
applied on a consistent basis to the new electric rate or service
classification or market price and to the immediately prior existing electric
rate or service classification or market price. If the average consumption
(energy and demand) for the entire Building for said prior (12) months cannot
reasonably be applied and used with respect to changed methods of or rules on
billing, then the percentage increase shall be computed by the use of the
average consumption (energy and demand) for the entire building for the first
three (3) months after such change, projected to a full twelve (12) months,
so as to reflect the different seasons; and that same consumption, so
projected, shall be applied to the rate and/or service classification or
market price which existed immediately prior to the change. The parties
agree that a reputable, independent electrical consultant firm, selected by
Landlord, ("Landlord's Electrical Consultant"), shall determine the
percentage change for the changes in ERIF due to Landlord's changed costs and
the charge to Tenant for Tenant's Share of Building electric current, and
that Landlord's Electrical Consultant may from time to time make surveys in
the Premises of the electrical equipment and fixtures and use of current.
(i) If such survey shall reflect an adjusted electrical load in excess of 41/2
watts of electricity for all purposes per rentable square foot and/or energy
usage in excess of Ordinary Business Hours (each such excess hereinafter
called "excess electricity") then the adjusted electrical load and/or the
hours of use portion(s) of the then existing ERIF shall be increased by an
amount which is equal to a fraction of the then existing ERIF, the numerator
of which is the excess electricity (i.e. excess adjusted load and/or excess
usage) and the denominator of which is the adjusted load and/or the energy
usage which was the basis of the then existing ERIF. Such fractions shall be
determined by Landlord's Electrical Consultant. The Fixed Annual Rent shall
then be appropriately adjusted, effective as of the date of any such change
in adjusted load and/or usage, as disclosed by said survey. (ii) If such
survey shall disclose installation and use of other than Ordinary Equipment,
then effective as of the date of said survey, there shall be added to the
ERIF portion of Fixed Annual Rent (computed and fixed as hereinbefore
described) an additional amount equal to what would be paid under the SC-4
Rate I Service Classification in effect on February 1, 2002 (and not the
time-of-day rate schedule) or the comparable rate schedule (and not the
time-of-day rate schedule) of any utility other than Con Ed then providing
electrical service to the building as same shall be in effect on the date of
such survey for such load and usage of electricity, with the adjusted
electrical load deemed to be the demand (KW) and the hours of use thereof
deemed to be the energy (KWH), as hereinbefore provided, (which addition to
the ERIF shall be increased by all electricity cost changes of Landlord, as
hereinabove provided, from February 1, 2002 through the date of billing).
41.05 In no event, whether because of surveys, rates or cost
changes, or for any reason, is the originally specified $3.00 per rentable
square foot ERIF portion of the fixed annual rent (plus any net increase
thereof by virtue of all electricity rate, service classification or market
price changes of Landlord subsequent to February 1, 2002) to be reduced.
41.06 The determinations by Landlord's Electrical Consultant
shall be binding and conclusive on Landlord and Tenant from and after the
delivery of copies of such determinations to Landlord and Tenant, unless,
within thirty (30) days after delivery thereof, Tenant disputes such
determination. If Tenant so disputes the determination, it shall, at its own
expense, obtain from a reputable, independent electrical consultant its own
determinations in accordance with the provisions of this Article. Tenant's
consultant and Landlord's consultant then shall seek to agree. If they
cannot agree within thirty (30) days they shall choose a third reputable
electrical consultant, whose cost shall be shared equally by the parties, to
make similar determinations which shall be controlling. (If they cannot
agree on such third consultant within ten (10) days, than either party may
apply to the Supreme Court in the County of New York for such appointment.)
However, pending such controlling determinations Tenant shall pay to Landlord
the amount of Additional Rent or ERIF in accordance with the determinations
of Landlord's Electrical Consultant. If the controlling determinations
differ from Landlord's Electrical Consultant, then the parties shall promptly
make adjustment for any deficiency owed by Tenant or overage paid by Tenant.
41.07 If any tax is imposed upon Landlord's receipt from the
sale, resale or redistribution of electricity or gas or telephone service to
Tenant by any Federal, State, or Municipal authority, Tenant covenants and
agrees that where permitted by law, Tenant's pro-rata share of such taxes
shall be passed on to and included in the bill of, and paid by, Tenant to
Landlord.
41.08 At the option of Landlord, Tenant agrees to purchase from
Landlord or its agents all lamps and bulbs used in the Premises and to pay
for the cost of installation thereof at commercially reasonable rates. If
all or part of the ERIF payable in accordance with Section 41.03 or 41.04 of
this Article becomes uncollectible or reduced or refunded by virtue of any
law, order or regulations, the parties agree that, at Landlord's option, in
lieu of submetering Additional Rent or ERIF, and in consideration of Tenant's
use of the Building's electrical distribution system and receipt of
redistributed electricity and payment by Landlord of consultant's fees and
other redistribution costs, the Fixed Annual Rental rate(s) to be paid under
this Agreement shall be increased by an "alternative charge" which shall be a
sum equal to $3.00 per year per rentable square foot of the Premises, changed
in the same percentage as any increase in the cost to Landlord for
electricity for the entire Building subsequent to February 1, 2002, because
of electric rate, service classification or market price changes, such
percentage change to be computed as in Section 41.04 provided.
41.09 Landlord shall not be liable to Tenant for any loss or
damage or expense which Tenant may sustain or incur if either the quantity or
character of electric service is changed or is no longer available or
suitable for Tenant's requirements. Tenant covenants and agrees that at all
times its use of electric current shall never exceed the capacity of existing
feeders to the Building or wiring installation. Any riser or risers to
supply Tenant's electrical requirements, upon written request of Tenant, will
be installed by Landlord, at the sole cost and expense of Tenant, if, in
Landlord's sole judgment, the same are necessary and will not cause permanent
damage or injury to the Building or the Premises or cause or create a
dangerous or hazardous condition or entail excessive or unreasonable
alterations, repairs or expense or interfere with or disturb other tenants or
occupants. In addition to the installation of such riser or risers, Landlord
will also at the sole cost and expense of Tenant, install all other equipment
proper and necessary in connection therewith subject to the aforesaid terms
and conditions. The parties acknowledge that they understand that it is
anticipated that electric rates, charges, etc., may be changed by virtue of
time-of-day rates or changes in other methods of billing, and/or electricity
purchases and the redistribution thereof, and fluctuation in the market price
of electricity, and that the references in the foregoing paragraphs to
changes in methods of or rules on billing are intended to include any such
changes. Anything hereinabove to the contrary notwithstanding, in no event
is the submetering Additional Rent or ERIF, or any "alternative charge", to
be less than an amount equal to the total of Landlord's payments to public
utilities and/or other providers for the electricity consumed by Tenant (and
any taxes thereon or on redistribution of same) plus 5% thereof for
transmission line loss, plus 15% thereof for other redistribution costs. The
Landlord reserves the right, at any time upon thirty (30) days' written
notice, to change to the distribution of less than all the components of the
existing service to Tenant. The Landlord reserves the right to terminate the
furnishing of electricity on a rent inclusion or any other basis at any time,
upon thirty (30) days' written notice to the Tenant, in which event the
Tenant may make application directly to the public utility and/or other
providers for the Tenant's entire separate supply of electric current and
Landlord shall permit its wires and conduits, to the extent available and
safely capable, to be used for such purpose, but only to the extent of
Tenant's then authorized load. Any meters, risers, or other equipment or
connections necessary to enable Tenant to obtain electric current directly
from such utility and/or other providers shall be installed at Landlords'
sole cost and expense. Only rigid conduit or electricity metal tubing (EMT)
will be allowed. The Landlord, upon the expiration of the aforesaid thirty
(30) days' written notice to the Tenant may discontinue furnishing the
electric current provided that Tenant has obtained service directly from the
public utility or other service provider (unless the failure to do so results
from Tenant's failure to promptly apply for such service and diligently
prosecute such application to completion) but this Lease shall otherwise
remain in full force and effect. If Tenant was provided electricity on a
rent inclusion basis when it was so discontinued, then commencing when Tenant
receives such direct service and as long as Tenant shall continue to receive
such service, the Fixed Annual Rent payable under this Lease shall be reduced
by the amount of the ERIF which was payable immediately prior to such
discontinuance of electricity on a rent inclusion basis.
<B>ARTICLE 42
<U>LEASE SUBMISSION</U></B>
42.01 Landlord and Tenant agree that this Lease is submitted to
Tenant on the understanding that it shall not be considered an offer and
shall not bind Landlord or Tenant in any way unless and until (i) Tenant has
duly executed and delivered duplicate originals thereof to Landlord and (ii)
Landlord has executed and delivered one of said originals to Tenant.
<B>ARTICLE 43
<U>INSURANCE</U></B>
43.01. Tenant shall not violate, or permit the violation of,
any condition imposed by the standard fire insurance policy then issued for
office buildings in the Borough of Manhattan, City of New York, and shall not
do, or permit anything to be done, or keep or permit anything to be kept in
the Premises which would subject Landlord to any liability or responsibility
for personal injury or death or property damage, or which would increase the
fire or other casualty insurance rate on the Building or the property therein
over the rate which would otherwise then be in effect (unless Tenant pays the
resulting premium as hereinafter provided for) or which would result in
insurance companies of good standing refusing to insure the building or any
of such property in amounts reasonably satisfactory to Landlord.
43.02 Tenant covenants to provide on or before the earlier to
occur of (i) the Commencement Date, and (ii) ten (10) days from the date of
this Lease, and to keep in force during the term hereof the following
insurance coverage which coverage shall be effective on the Commencement Date:
(a) A comprehensive policy of liability insurance naming
Landlord and its designees as additional insureds protecting Landlord, its
designees and Tenant against any liability whatsoever occasioned by accident
on or about the Premises or any appurtenances thereto. Such policy shall have
limits of liability of not less than Three Million ($3,000,000.00) Dollars
combined single limit coverage on a per occurrence basis, including property
damage. Such insurance may be carried under a blanket policy covering the
Premises and other locations of Tenant, if any, provided such a policy
contains an endorsement (i) naming Landlord and its designees as additional
insureds, (ii) specifically referencing the Premises; and (iii) guaranteeing
a minimum limit available for the Premises equal to the limits of liability
required under this Lease;
(b) Fire and extended coverage in an amount adequate to
cover the cost of replacement of all personal property, fixtures,
furnishings, equipment, improvements and installations located in the
Premises.
43.03 All such policies shall be issued by companies of
recognized responsibility licensed to do business in New York State and rated
by Best's Insurance Reports or any successor publication of comparable
standing and carrying a rating of A+ VIII or better or the then equivalent of
such rating, and all such policies shall contain a provision whereby the same
cannot be canceled or modified unless Landlord and any additional insured are
given at least thirty (30) days prior written notice of such cancellation or
modification.
43.04 Prior to the time such insurance is first required to be
carried by Tenant and thereafter, at least fifteen (15) days prior to the
expiration of any such policies, Tenant shall deliver to Landlord either
duplicate originals of the aforesaid policies or certificates evidencing such
insurance, together with evidence of payment for the policy. If Tenant
delivers certificates as aforesaid Tenant, upon reasonable prior notice from
Landlord, shall make available to Landlord, at the Premises, duplicate
originals of such policies from which Landlord may make copies thereof, at
Landlord's cost. Tenant's failure to provide and keep in force the
aforementioned insurance shall be regarded as a material default hereunder,
entitling Landlord to exercise any or all of the remedies as provided in this
Lease in the event of Tenant's default. In addition, in the event Tenant
fails to provide and keep in force the insurance required by this Lease, at
the times and for the durations specified in this Lease, Landlord shall have
the right, but not the obligation, at any time and from time to time, and
without notice, to procure such insurance and/or pay the premiums for such
insurance in which event Tenant shall repay Landlord within five (5) days
after demand by Landlord, as Additional Rent, all sums so paid by Landlord
and any costs or expenses incurred by Landlord in connection therewith
without prejudice to any other rights and remedies of Landlord under this
Lease.
43.05 Landlord and Tenant shall each endeavor to secure an
appropriate clause in, or an endorsement upon, each fire or extended coverage
policy obtained by it and covering the Building, the Premises or the personal
property, fixtures and equipment located therein or thereon, pursuant to
which the respective insurance companies waive subrogation or permit the
insured, prior to any loss, to agree with a third party to waive any claim it
might have against said third party. The waiver of subrogation or permission
for waiver of any claim hereinbefore referred to shall extend to the agents
of each party and its employees and, in the case of Tenant, shall also extend
to all other persons and entities occupying or using the Premises in
accordance with the terms of this Lease. If and to the extent that such
waiver or permission can be obtained only upon payment of an additional
charge then, except as provided in the following two paragraphs, the party
benefiting from the waiver or permission shall pay such charge upon demand,
or shall be deemed to have agreed that the party obtaining the insurance
coverage in question shall be free of any further obligations under the
provisions hereof relating to such waiver or permission.
43.06 In the event that Landlord shall be unable at any time to
obtain one of the provisions referred to above in any of its insurance
policies, at Tenant's option, Landlord shall cause Tenant to be named in such
policy or policies as one of the insureds, but if any additional premium
shall be imposed for the inclusion of Tenant as such an assured, Tenant shall
pay such additional premium upon demand. In the event that Tenant shall have
been named as one of the insureds in any of Landlord's policies in accordance
with the foregoing, Tenant shall endorse promptly to the order of Landlord,
without recourse, any check, draft or order for the payment of money
representing the proceeds of any such policy or any other payment growing out
of or adjusted with said policy and Tenant hereby irrevocably waives any and
all rights in and to such proceeds and payments excluding proceeds relating
to Tenant's personalty.
43.07 In the event that Tenant shall be unable at any time to
obtain one of the provisions referred to above in any of its insurance
policies, Tenant shall cause Landlord to be named in such policy or policies
as one of the insureds, but if any additional premium shall be imposed for
the inclusion of Landlord as such an assured, Landlord shall pay such
additional premium upon demand or Tenant shall be excused from its
obligations under this paragraph with respect to the insurance policy or
policies for which such additional premiums would be imposed.
43.08 Subject to the foregoing provisions of this Article, and
insofar as may be permitted by the terms of the insurance policies carried by
it, each party hereby releases the other with respect to any claim (including
a claim for negligence) which it might otherwise have against the other party
for loss, damages or destruction with respect to its property by fire or
other casualty (including rental value or business interruption, as the case
may be) occurring during the Term of this Lease.
43.09 If, by reason of a failure of Tenant to comply with the
provisions of this Lease, the rate of fire insurance with extended coverage
on the building or equipment or other property of Landlord shall be higher
than it otherwise would be, Tenant shall reimburse Landlord, on demand, for
that part of the premiums for fire insurance and extended coverage paid by
Landlord because of such failure on the part of Tenant.
43.10. Landlord may, from time to time, require that the
amount of the insurance to be provided and maintained by Tenant hereunder be
increased so that the amount thereof adequately protects Landlord's interest,
but in no event in excess of the amount that would be required by other
tenants in other similar office buildings in the borough of Manhattan.
43.11 A schedule or make up of rates for the building or the
Premises, as the case may be, issued by the New York Fire Insurance Rating
Organization or other similar body making rates for fire insurance and
extended coverage for the premises concerned, shall be conclusive evidence of
the facts therein stated and of the several items and charges in the fire
insurance rate with extended coverage then applicable to such premises.
43.12 Each policy evidencing the insurance to be carried by
Tenant under this Lease shall contain a clause that such policy and the
coverage evidenced thereby shall be primary with respect to any policies
carried by Landlord, and that any coverage carried by Landlord shall be
excess insurance.
<B>ARTICLE 44
<U>SIGNAGE</U></B>
44.01 Tenant shall be permitted to affix either sign or plaque on
or adjacent to the entrance door to the Premises, subject to the prior
written approval of Landlord which shall not be unreasonably withheld subject
to the other provisions of this article, with respect to location, design,
size, materials, quality, coloring, lettering and shape thereof, and subject,
also, to compliance by Tenant, at its expense, with all applicable legal
requirements or regulations. All such signage shall be consistent and
compatible with the design, aesthetics, signage and graphics program for the
Building as established by Landlord. Landlord may remove any sign installed
in violation of this provision, and Tenant shall pay the cost of such removal
and any restoration costs.
<B>ARTICLE 45
<U>RIGHT TO RELOCATE</U></B>
45.01 Notwithstanding anything contained in this Lease to the
contrary, Landlord shall have the right to substitute in lieu of the Premises
alternative space in the Building located on or above the 10th floor
designated by Landlord (the "Relocation Space") effective as of the date (the
"Relocation Effective Date") set forth in a notice given to Tenant (the
"Relocation Notice"). The Relocation Space shall be reasonably comparable to
the Premises with respect to internal configuration, quality of finish and
rentable square foot area (i.e., plus or minus ten (10%) percent). The
Relocation Effective Date shall not be less than ninety (90) days following
the date upon which the Relocation Notice is given to Tenant. In the event
that Landlord exercises its rights hereunder, (i) Tenant shall deliver to
Landlord possession of the Premises on or before the Relocation Effective
Date vacant and broom clean, free of all occupancies and encumbrances and
otherwise in accordance with the terms, covenants and conditions of the Lease
as if the Relocation Effective Date were the expiration date of the Term of
this Lease, (ii) effective as of the Relocation Effective Date, the term and
estate hereby granted with respect to the Premises originally demised
hereunder shall terminate, the Relocation Space shall be deemed to be the
Premises and the Fixed Annual Rent and Additional Rent payable under this
Lease shall be adjusted, if necessary, so as to reflect any difference
between the deemed rentable square foot area of the original Premises and
said Relocation Space; provided, however, that in the event that the rentable
square foot area of said Relocation Space is greater than the original
Premises, the Fixed Annual Rent and Additional Rent payable for the
Relocation Space shall be equal to the amount payable hereunder for the
Premises.
45.02 Provided that Tenant is not in default under this Lease,
Landlord shall (i) at Landlord's cost and expense, remove and reinstall
Tenants' personal property, trade fixtures and equipment in the Relocation
Space ("Landlord's Relocation Work") and (ii) compensate Tenant for Tenant's
actual, reasonable, out-of-pocket moving and related expenses (including,
without limitation the reasonable fees of architects, engineers and attorneys
and reasonable stationary costs) upon Tenant's submission of paid invoices
therefor. Landlord shall complete Landlord's Relocation Work on or before
the Relocation Effective Date provided that Tenant cooperates with Landlord
and gives Landlord full access to the Premises to facilitate the performance
thereof. Landlord shall use reasonable efforts to minimize interference with
Tenant's normal business activities within the Premises. Landlord's
Relocation Work shall be performed after normal business hours or on weekends.
45.03 Following any relocation undertaken pursuant to this
Article, Tenant shall promptly execute and deliver an agreement confirming
such relocation and fixing any corresponding adjustments in Fixed Annual Rent
and Additional Rent payable under this Lease, but any failure to execute such
an agreement by Tenant shall not affect such relocation and adjustments as
determined by Landlord.
<B>ARTICLE 46
<U>FUTURE CONDOMINIUM CONVERSION</U></B>
46.01 Tenant acknowledges that the Building and the land of which
the Premises form a part may be subjected to the condominium form of
ownership prior to the end of the Term of this Lease. Tenant agrees that if,
at any time during the Term, the Building and the land shall be subjected to
the condominium form of ownership, then, this Lease and all rights of Tenant
hereunder are and shall be subject and subordinate in all respects to any
condominium declaration and any other documents (collectively, the
"Declaration") which shall be recorded in order to convert the Building and
the land of which the Premises form a part to a condominium form of ownership
in accordance with the provisions of Article 9-B of the Real Property Law of
the State of New York or any successor thereto. If any such Declaration is
to be recorded, Tenant, upon request of Landlord, shall enter into an
amendment of this Lease in such respects as shall be necessary to conform to
such condominiumization, including, without limitation, appropriate
adjustments to Real Estate Taxes payable during the Base Tax Year and
Tenant's Share, as such terms are defined in Article 32 hereof.
<B>ARTICLE 47
<U>MISCELLANEOUS</U></B>
47.01 This Lease represents the entire understanding between the
parties with regard to the matters addressed herein and may only be modified
by written agreement executed by all parties hereto. All prior
understandings or representations between the parties hereto, oral or
written, with regard to the matters addressed herein are hereby merged
herein. Tenant acknowledges that neither Landlord nor any representative or
agent of Landlord has made any representation or warranty, express or
implied, as to the physical condition, state of repair, layout, footage or
use of the Premises or any matter or thing affecting or relating to Premises
except as specifically set forth in this Lease. Tenant has not been induced
by and has not relied upon any statement, representation or agreement,
whether express or implied, not specifically set forth in this Lease. Tenant
shall not be liable or bound in any manner by any oral or written statement,
broker's "set-up"," representation, agreement or information pertaining to
the Premises, the Building or this Agreement furnished by any real estate
broker, agent, servant, employee or other person, unless specifically set
forth herein, and no rights are or shall be acquired by Tenant by implication
or otherwise unless expressly set forth herein. This Lease shall be construed
without regard to any presumption or other rule requiring construction
against the party causing this agreement to be drafted.
<B>ARTICLE 48
<U>COMPLIANCE WITH LAW</U></B>
48.01 If, at any time during the Term hereof, Landlord expends
any sums for alterations or improvements to the Building which are required
to be made pursuant to any law, ordinance or governmental regulation, Tenant
shall pay to Landlord, as Additional Rent, Tenant's Share of such cost within
ten (10) days after demand therefor; provided, however, that if the cost of
such alteration or improvement is one which is required to be amortized over
a period of time pursuant to applicable governmental regulations, Tenant
shall pay to Landlord, as Additional Rent, during each year in which occurs
any part of the Term, Tenant's Share of the cost thereof amortized on a
straight line basis over an appropriate period, but not more than three (3)
years. Notwithstanding anything to the contrary contained herein, in the
event that the requirement for the performance of any such alteration of
improvement is attributable to the actions, installations, use or manner of
use of the Premises by Tenant, then in such event Tenant shall be responsible
to pay the entire cost imposed by Landlord with respect to such alteration of
improvement; provided, further, however, that the Additional Rent payable by
Tenant under this Section 48.01 in any single calendar year during the Term
hereof shall not exceed the sum of $10,495.00.
<B>ARTICLE 49
<U>EXTENSION OPTION</U></B>
49.01 Provided that Tenant is not in default under this Lease
beyond the grace period applicable to such default, if any, at the time of
exercise of its option under this Section 49 or on the Expiration Date, and
the Tenant first named herein or any permitted successor in interest or
affiliate of Tenant (collectively, "Named Tenant") shall occupy not less than
eighty (80%) percent of the entire Premises for the conduct of its business
on the Expiration Date, the Named Tenant shall have the right (the "Extension
Right") to extend the term of the Lease with respect to the entire Premises
for a single one (1) period (the "Extension Term"). The Extension Term shall
commence on the day after the Expiration Date (the "Extension Term Comm.
Date") and shall expire on the first (1st) anniversary of the Expiration
Date, unless the Extension Term shall sooner end pursuant to any of the
terms, covenants or conditions of the Lease or pursuant to Law. Tenant must
give Landlord written notice of Tenant's intention to exercise such option no
later than two hundred seventy (270) days years prior to the Expiration Date,
as to which date time is of the essence, and upon the giving of such notice,
subject to the provisions of the first sentence of this Section 49.01 and
Subsection (vi) hereof, the term of the Lease shall be extended without
execution or delivery of any other or further document, with the same force
and effect as if the Extension Term had originally been included in the
original term of the Lease. All of the terms, covenants and conditions of
the Lease shall continue in full force and effect during the Extension Term,
including items of Additional Rent and escalation which shall remain payable
on the terms herein set forth (provided, however, that the provisions of
Sections 3.02 and 22.02 hereof shall not be applicable during the Extension
Term) and Tenant shall have no further right to extend the term of the Lease
for any reason.
(ii) The fixed annual rent payable by Tenant for the Premises
during the Extension Term shall be the fair market rental value of the
Premises based upon the criteria set forth in subsection (v) of this Article
(the "FMRV"), determined as of the Expiration Date. The FMRV shall be
determined as follows:
(1) Nine (9) months before the Expiration Date as initially
herein set forth, Landlord and Tenant shall commence negotiations in good
faith to attempt to agree upon the FMRV. If Landlord and Tenant cannot reach
agreement by seven (7) months before the Expiration Date, Landlord and Tenant
shall, no later than six (6) months before the Expiration Date, each select a
reputable, qualified, independent, licensed real estate broker with at least
ten (10) years experience in office leasing in midtown Manhattan, having an
office in New York County and familiar with the rentals then being charged in
the Building and in buildings of comparable quality and character in midtown
Manhattan ("Midtown") (such brokers are referred to, respectively, as
"Landlord's Broker" and "Tenant's Broker"), who shall confer promptly after
their selection by Landlord and Tenant and shall exercise good faith efforts
to attempt to agree upon the FMRV. If Landlord's Broker and Tenant's Broker
cannot reach agreement by four (4) months prior to the Expiration Date, then,
within twenty (20) days thereafter, they shall designate a third reputable,
qualified, independent, licensed real estate broker with at least ten (10)
years experience in office leasing in midtown Manhattan, having an office in
New York County and familiar with the rentals then being charged in the
Building and in comparable buildings in Midtown (the "Independent Broker").
Upon failure of Landlord's Broker and Tenant's Broker timely to agree upon
the designation of the Independent Broker, then the Independent Broker shall
be appointed by the President of the Real Estate Board of New York, Inc., or
the successor thereto, upon ten (10) days notice. Within ten (10) days after
such appointment, Landlord's Broker and Tenant's Broker shall each submit a
letter to the Independent Broker, with a copy to Landlord and Tenant, setting
forth such broker's estimate of the FMRV and the rationale used in
determining it (respectively, "Landlord's Broker's Letter" and "Tenant's
Broker's Letter").
(2) If the estimates set forth in Landlord's Broker's Letter
and Tenant's Broker's Letter differ by five (5%) percent per annum or less,
then the FMRV shall not be determined by the Independent Broker, and the FMRV
shall be the average of the estimates set forth in Landlord's Broker's Letter
and Tenant's Broker's Letter. If the estimates set forth in Landlord's
Broker's Letter and Tenant's Broker's Letter differ by more than five (5%)
percent per annum, the Independent Broker shall conduct such investigations
and hearings as he or she may deem appropriate and shall, within sixty (60)
days after the date of his or her appointment, choose either the estimate set
forth in Landlord's Broker's Letter or the estimate set forth in Tenant's
Broker's Letter to be the FMRV and such choice shall be binding upon Landlord
and Tenant. Landlord and Tenant shall each pay the fees and expenses of its
respective broker. The fees and expenses of the Independent Broker shall be
shared equally by Landlord and Tenant.
(iii) If the Extension Term commences prior to a determination of
the Fixed Rent for the Extension Term as herein provided, then the amount to
be paid by Tenant on account of Fixed Rent until such determination has been
made shall be the greater of the Escalated Rent or the estimate set forth in
Landlord's Broker's Letter. After the Fixed Rent during the Extension Term
has been determined as aforesaid, any amounts theretofore paid by Tenant to
Landlord on account of Fixed Rent in excess of the amount of Fixed Rent as
finally determined shall be credited by Landlord against the next ensuing
monthly Fixed Rent payable by Tenant to Landlord.
(iv) Promptly after the Fixed Rent has been determined, Landlord
and Tenant shall execute, acknowledge and deliver an agreement setting forth
the Fixed Rent for the Extension Term, as finally determined, provided that
the failure of the parties to do so shall not affect their respective rights
and obligations hereunder.
(v) The FMRV shall be the fair market rental value, as of the
Expiration Date, of space comparable to the Premises in Midtown applicable to
a party renting such space on a renewal basis taking into account that the
leasehold improvements contained therein were designed and constructed by,
and of particular value to, the Named Tenant for its business operations
therein.
(vi) Notwithstanding anything to the contrary contained in this
Article, Landlord shall have the right, in its sole discretion, to waive the
conditions to the effectiveness of Tenant's exercise of its Extension Right
set forth in subsection (i) of this Article 49 without thereby waiving any
default by Tenant set forth in Paragraph (i) of this Article without thereby
waiving any default by Tenant, in which event (i) the term of the Lease shall
be extended without execution or delivery of any other or further document in
accordance with the provisions of this Article with the same force and effect
as if the Extension Term had originally been included in the term of the
Lease, and (ii) Landlord shall be entitled to all of the remedies provided by
this Lease and at law with respect to any such default by Tenant.
IN WITNESS WHEREOF, the said Landlord, and the Tenant have duly
executed this Lease as of the day and year first above written.
SLG GRAYBAR SUBLEASE LLC, a New York
limited liability company, Landlord
By: SLG Graybar Sublease Corp., a
New York corporation, its Managing
Member
By: /s/Gerard Nocera
Title: Executive Vice President
Witness:
--------------------------
Name:
Title: MEDIX RESOURCES, INC., as Tenant
By: /s/John R. Prufeta
Title: President & CEO
Witness:
Name: /s/Gary L. Smith
Title: Executive Vice President & Chief Financial Officer
<B>ARTICLE 50
<U>RULES AND REGULATIONS</U>
<U>MADE A PART OF THIS LEASE</U></B>
1. No animals, birds, bicycles or vehicles shall be brought into
or kept in the Premises. The Premises shall not be used for manufacturing or
commercial repairing or for sale or display of merchandise or as a lodging
place, or for any immoral or illegal purpose, nor shall the Premises be used
for a public stenographer or typist; barber or beauty shop; telephone,
secretarial or messenger service; employment, travel or tourist agency;
school or classroom; commercial document reproduction; or for any business
other than specifically provided for in the Tenant's lease. Tenant shall not
cause or permit in the Premises any disturbing noises which may interfere
with occupants of this or neighboring Buildings, any cooking or objectionable
odors, or any nuisance of any kind, or any inflammable or explosive fluid,
chemical or substance. Canvassing, soliciting and peddling in the Building
are prohibited, and each tenant shall cooperate so as to prevent the same.
2. The toilet rooms and other water apparatus shall not be used
for any purposes other than those for which they were constructed, and no
sweepings, rags, ink, chemicals or other unsuitable substances shall be
thrown therein. Tenant shall not place anything out of doors, windows or
skylights, or into hallways, stairways or elevators, nor place foot or
objects on outside window sills. Tenant shall not obstruct or cover the
halls, stairways and elevators, or use them for any purpose other than
ingress and egress to or from Tenant's Premises, nor shall skylights,
windows, doors and transoms that reflect or admit light into the Building be
covered or obstructed in any way. All drapes and blinds installed by Tenant
on any exterior window of the Premises shall conform in style and color to
the Building standard.
3. Tenant shall not place a load upon any floor of the Premises
in excess of the load per square foot which such floor was designed to carry
and which is allowed by law. Landlord reserves the right to prescribe the
weight and position of all safes, file cabinets and filing equipment in the
Premises. Business machines and mechanical equipment shall be placed and
maintained by Tenant, at Tenant's expense, only with Landlord's consent and
in settings approved by Landlord to control weight, vibration, noise and
annoyance. Smoking or carrying lighted cigars, pipes or cigarettes in the
elevators of the Building is prohibited.
4. Tenant shall not move any heavy or bulky materials into or
out of the Building or make or receive large deliveries of goods,
furnishings, equipment or other items without Landlord's prior written
consent, and then only during such hours and in such manner as Landlord shall
approve and in accordance with Landlord's rules and regulations pertaining
thereto. If any material or equipment requires special handling, tenant
shall employ only persons holding a Master Rigger's License to do such work,
and all such work shall comply with all legal requirements. Landlord
reserves the right to inspect all freight to be brought into the Building,
and to exclude any freight which violates any rule, regulation or other
provision of this Lease.
5. No sign, advertisement, notice or thing shall be inscribed,
painted or affixed on any part of the Building, without the prior written
consent of Landlord. Landlord may remove anything installed in violation of
this provision, and Tenant shall pay the cost of such removal and any
restoration costs. Interior signs on doors and directories shall be
inscribed or affixed by Landlord at Tenant's expense. Landlord shall control
the color, size, style and location of all signs, advertisements and
notices. No advertising of any kind by Tenant shall refer to the Building,
unless first approved in writing by Landlord.
6. No article shall be fastened to, or holes drilled or nails or
screws driven into, the ceilings, walls, doors or other portions of the
Premises, nor shall any part of the Premises be painted, papered or otherwise
covered, or in any way marked or broken, without the prior written consent of
Landlord.
7. No existing locks shall be changed, nor shall any additional
locks or bolts of any kind be placed upon any door or window by Tenant,
without the prior written consent of Landlord. Two (2) sets of keys to all
exterior and interior locks shall be furnished to Landlord . At the
termination of this Lease, Tenant shall deliver to Landlord all keys for any
portion of the Premises or Building. Before leaving the Premises at any time,
Tenant shall close all windows and close and lock all doors.
8. No Tenant shall purchase or obtain for use in the Premises
any spring water, ice, towels, food, bootblacking, barbering or other such
service furnished by any company or person not approved by Landlord. Any
necessary exterminating work in the Premises shall be done at Tenant's
expense, at such times, in such manner and by such company as Landlord shall
require. Landlord reserves the right to exclude from the Building, from 6:00
p.m. to 8:00 a.m., and at all hours on Sunday and legal holidays, all persons
who do not present a pass to the Building signed by Landlord. Landlord will
furnish passes to all persons reasonably designated by Tenant. Tenant shall
be responsible for the acts of all persons to whom passes are issued at
Tenant's request.
9. Whenever Tenant shall submit to Landlord any plan, agreement
or other document for Landlord's consent or approval, Tenant agrees to pay
Landlord as Additional Rent, on demand, an administrative fee equal to the
sum of the reasonable fees of any architect, engineer or attorney employed by
Landlord to review said plan, agreement or document and Landlord's
administrative costs for same.
10. The use in the Premises of auxiliary heating devices, such
as portable electric heaters, heat lamps or other devices whose principal
function at the time of operation is to produce space heating, is
prohibited.
11. Tenant shall keep all doors from the hallway to the Premises
closed at all times except for use during ingress to and egress from the
Premises. Tenant acknowledges that a violation of the terms of this
paragraph may also constitute a violation of codes, rules or regulations of
governmental authorities having or asserting jurisdiction over the Premises,
and Tenant agrees to indemnify Landlord from any fines, penalties, claims,
action or increase in fire insurance rates which might result from Tenant's
violation of the terms of this paragraph.
12. Tenant shall be permitted to maintain an "in-house"
messenger or delivery service within the Premises, provided that Tenant shall
require that any messengers in its employ affix identification to the breast
pocket of their outer garment, which shall bear the following information:
name of Tenant, name of employee and photograph of the employee. Messengers
in Tenant's employ shall display such identification at all time. In the
event that Tenant or any agent, servant or employee of Tenant, violates the
terms of this paragraph, Landlord shall be entitled to terminate Tenant's
permission to maintain within the Premises in-house messenger or delivery
service upon written notice to Tenant.
13. Tenant will be entitled to three (3) listings on the
Building lobby directory board, without charge. Any additional directory
listing (if space is available), or any change in a prior listing, with the
exception of a deletion, will be subject to a fourteen ($14.00) dollar
service charge, payable as Additional Rent.
14. In case of any conflict or inconsistency between any
provisions of this Lease and any of the rules and regulations as originally
or as hereafter adopted, the provisions of this Lease shall control.
<PAGE>
<B><U>EXHIBIT A</U></B>
[Not included since both parties agreed that for identification of the
premises, reference is made to the architectural plan showing the office
layout, which is not included in this lease document.]
<PAGE>
<B><U>EXHIBIT B</U></B>
Tenant shall pay Fixed Annual Rent for the Premises (without
electricity) at the following rates per annum:
a) Two Hundred Eighty Three Thousand Three Hundred Sixty Five
($283,365.00) Dollars per annum ($23,613.75 per month) for the
period commencing on February 1, 2002 through January31, 2003;
b) Two Hundred Eighty Nine Thousand Thirty Two and 36/100
($289,032.36) Dollars per annum ($24,086.03 per month) for the
period commencing February 1, 2003 through January 31, 2004; and
c) Two Hundred Ninety Four Thousand Eight Hundred Thirteen
($294,813.00) Dollars per annum ($24,567.75 per month) for the
period commencing February 1, 2004 through January 31, 2005.
<PAGE>
<B><U>EXHIBIT C</U>
<U>CLEANING SPECIFICATIONS</U></B>
A) Carpet sweep <U>ENERAL CLEANING - NIGHTLY</U>
- Dust sweep all stone, ceramic tile, marble terrazzo, asphalt tile,
linoleum, rubber, vinyl and other types of flooring
- all carpets and rugs four (4) times per week
- Vacuum clean all carpets and rugs, once (1) per week
- Police all private stairways and keep in clean condition
- Empty and clean all wastepaper baskets, ash trays and receptacles; damp
dust as necessary
- Clean all cigarette urns and replace sand or water as necessary
- Remove all normal wastepaper and tenant rubbish to a designated area in
the premises. (Excluding cafeteria waste, bulk materials, and all
special materials such as old desks, furniture, etc.)
- Dust all furniture, and window sills as necessary
- Dust clean all glass furniture tops
- Dust all chair rails, trim and similar objects as necessary
- Dust all baseboards as necessary
- Wash clean all water fountains
- Keep locker and service closets in clean and orderly condition
B) <U>LAVATORIES - NIGHTLY (EXCLUDING PRIVATE & EXECUTIVE LAVATORIES)</U>
- Sweep and mop all flooring
- Wipe clean all mirrors, powder shelves and brightwork, including
flushometers, piping toilet seat hinges
- Wash and disinfect all basin, bowls and urinals
- Wash both sides of all toilet seats
- Dust all partitions, tile walls, dispensers and receptacles
- Empty and clean paper towel and sanitary disposal receptacles
- Fill toilet tissue holders, soap dispensers and towel dispensers;
materials to be furnished by Landlord
- Remove all wastepaper and refuse to designated area in the premises
C) <U>LAVATORIES - PERIODIC CLEANING (EXCLUDES PRIVATE & EXECUTIVE LAVATORIES</U>
- Machine scrub flooring as necessary
- Wash all partitions, tile walls, and enamel surfaces periodically,
using proper disinfectant when necessary
D) <U>DAY SERVICES - DUTIES OF THE DAY PORTERS</U>
- Police ladies' restrooms and lavatories, keeping them in clean condition
- Fill toilet dispensers; materials to be furnished by Landlord
- Fill sanitary napkin dispensers; materials to be furnished by Landlord
E) <U>SCHEDULE OF CLEANING</U>
- Upon completion of the nightly chores, all lights shall be turned off,
windows closed, doors locked and offices left in a neat and orderly
condition
- All day, nightly and periodic cleaning services as listed herein, to be
done five nights each week, Monday through Friday, except Union and
Legal Holidays
- All windows from the 2nd floor to the roof will be cleaned inside out
quarterly, weather permitting