EXHIBIT 10.3
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LEASE DATED AS OF
APRIL 1, 2000
BY AND BETWEEN
THE ▇▇▇▇▇▇, CHURCH-WARDENS AND VESTRYMEN
OF TRINITY CHURCH IN THE CITY OF NEW YORK, AS LANDLORD
AND
PHOTODISC, INC., AS TENANT
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▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇
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Parish of Trinity Church in the City of New York
Real Estate Department
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TABLE OF CONTENTS
ARTICLE ONE
TERM; RENT; FREE RENT............................................. (1)
ARTICLE TWO
USE............................................................... (2)
ARTICLE THREE
REPAIRS; NOISE AND VIBRATION...................................... (3)
ARTICLE FOUR
ALTERATIONS AND FIXTURES.......................................... (4)
ARTICLE FIVE
COMPLIANCE WITH GOVERNMENTAL RULES AND REGULATIONS................ (6)
ARTICLE SIX
RULES AND REGULATIONS............................................. (7)
ARTICLE SEVEN
PLATE GLASS....................................................... (7)
ARTICLE EIGHT
CARE OF SIDEWALKS................................................. (8)
ARTICLE NINE
LANDLORD'S ACCESS TO THE PREMISES................................. (8)
ARTICLE TEN
ELECTRIC CURRENT; LIVE STEAM...................................... (8)
ARTICLE ELEVEN
CONDEMNATION AND DEMOLITION....................................... (10)
ARTICLE TWELVE
MECHANIC'S LIENS.................................................. (11)
ARTICLE THIRTEEN
SUBORDINATION..................................................... (11)
ARTICLE FOURTEEN
CERTIFICATE OF OCCUPANCY.......................................... (13)
ARTICLE FIFTEEN
VAULTS............................................................ (13)
ARTICLE SIXTEEN
FIRE AND OTHER CASUALTY........................................... (13)
ARTICLE SEVENTEEN
CHANGE IN USE OF PREMISES, SUBLETTING AND ASSIGNMENT.............. (15)
ARTICLE EIGHTEEN
WAIVER AND SURRENDER; REMEDIES CUMULATIVE......................... (21)
-ii-
ARTICLE NINETEEN
NO REPRESENTATIONS AS TO PREMISES, CERTIFICATE OF OCCUPANCY AND
USE............................................................... (22)
ARTICLE TWENTY
LIMITATION OF LANDLORD'S LIABILITY................................ (22)
ARTICLE TWENTY-ONE
INDEMNITY BY TENANT............................................... (23)
ARTICLE TWENTY-TWO
NOTICES........................................................... (24)
ARTICLE TWENTY-THREE
INSOLVENCY........................................................ (24)
ARTICLE TWENTY-FOUR
REMEDIES OF THE LANDLORD ON DEFAULT IN PERFORMANCE BY THE
TENANT............................................................ (26)
ARTICLE TWENTY-FIVE
DEFAULT........................................................... (26)
ARTICLE TWENTY-SIX
REMEDIES AND DAMAGES.............................................. (28)
ARTICLE TWENTY-SEVEN
SURRENDER AT EXPIRATION........................................... (29)
ARTICLE TWENTY-EIGHT
QUIET ENJOYMENT................................................... (30)
ARTICLE TWENTY-NINE
SECURITY DEPOSIT.................................................. (30)
ARTICLE THIRTY
REAL ESTATE TAX AND OPERATING EXPENSE ESCALATION.................. (31)
ARTICLE THIRTY-ONE
SERVICES.......................................................... (33)
ARTICLE THIRTY-TWO
INSURANCE......................................................... (35)
ARTICLE THIRTY-THREE
DEFAULT UNDER OTHER LEASES........................................ (35)
ARTICLE THIRTY-FOUR
WORK TO BE DONE BY LANDLORD....................................... (35)
ARTICLE THIRTY-FIVE
CONSENT TO JURISDICTION........................................... (36)
ARTICLE THIRTY-SIX
TENANT LIABILITY.................................................. (36)
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ARTICLE THIRTY-SEVEN
ADJACENT EXCAVATION -SHORING...................................... (37)
ARTICLE THIRTY-EIGHT
FAILURE TO GIVE POSSESSION........................................ (37)
ARTICLE THIRTY-NINE
BROKER............................................................ (37)
ARTICLE FORTY
RENT RESTRICTIONS................................................. (37)
ARTICLE FORTY-ONE
CERTIFICATES BY TENANT............................................ (38)
ARTICLE FORTY-TWO
RESTRICTIONS ON TENANT'S USE...................................... (38)
ARTICLE FORTY-THREE
HAZARDOUS MATERIALS............................................... (38)
ARTICLE FORTY-FOUR
MISCELLANEOUS..................................................... (39)
ARTICLE FORTY-FIVE
ANTENNA INSTALLATION.............................................. (39)
SCHEDULES AND EXHIBITS
SCHEDULE A
RULES AND REGULATIONS............................................. (i)
SCHEDULE B
CLEANING SPECIFICATIONS........................................... (v)
EXHIBIT A - FLOOR PLANS
EXHIBIT B - CERTIFICATE OF OCCUPANCY
EXHIBIT C - WORK LETTER
-iv-
THIS LEASE made as of the 1st day of April, 2000 between THE ▇▇▇▇▇▇,
CHURCH-WARDENS AND VESTRYMEN OF TRINITY CHURCH IN THE CITY OF NEW YORK, a
religious corporation (hereafter referred to as "the Landlord"), having its
offices at ▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇, ▇▇▇▇▇▇ and State of New
York, and PHOTODISC, INC. (hereafter referred to as "the Tenant"), a corporation
organized under the laws of the state of Washington, having an address at ▇▇▇
▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇.
W I T N E S S E T H :
That the Landlord hereby lets and leases to the Tenant, and the Tenant
hereby takes and hires from the Landlord, the following described space: the
entire 2nd floor (such space is hereafter referred to as the "Premises" and
shown as the cross-hatched area on Exhibit A annexed hereto) in the building
known as ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ in the Borough of Manhattan, City, County and State
of New York (hereafter referred to as "the building"), with the privilege to the
Tenant of using (subject to such reasonable rules and regulations as the
Landlord shall from time to time prescribe) the necessary entrances and
appurtenances to the premises, reserving to the Landlord all other portions of
the building not herein specifically demised. This letting is upon the following
covenants and conditions, each and every one of which the Tenant covenants and
agrees with the Landlord to keep and perform, and the Tenant agrees that the
covenants herein contained on the part of the Tenant to be performed, shall be
deemed conditional limitations, as well as covenants and conditions.
ARTICLE ONE
TERM: RENT: FREE RENT
(a) The term shall commence on April 1, 2000 (the "Commencement Date"), and
shall expire on March 31, 2015 (or until such term shall sooner cease and expire
or be terminated as hereinafter provided) (the "Expiration Date"), at an annual
rent (the "fixed rent") of
(i) during the period April 1, 2000 to March 31, 2007, Five Hundred
Twenty-five Thousand, Eight Hundred Fifty-two and no/100 Dollars
($525,852.00), payable in equal monthly installments of Forty-three
Thousand, Eight Hundred Twenty-one and no/100 Dollars ($43,821.00); and
(ii) during the period April 1, 2007 to March 31, 2015, Five Hundred
Eighty-Four Thousand, Two Hundred Eight and no/100 Dollars ($584,280.00),
payable in equal monthly installments of Forty-eight Thousand, Six Hundred
Ninety and no/100 Dollars ($48,690.00).
(b) Fixed rent shall be payable in advance on the first day of each month
during the term of this lease at the offices of the Landlord or at such other
place as the Landlord may designate. The Tenant shall pay the fixed rent without
demand therefor and without any set-off, deduction, abatement or offset
whatsoever, except that the Tenant shall pay the first monthly installment of
fixed rent upon the execution of this lease. If the Commencement Date applicable
to any portion of the Premises occurs on a day other than the first day of a
calendar month, the fixed rent for such calendar month shall be pro-rated based
on the number of days in the month. All rent payments shall be paid in lawful
money of the United States of America, which shall be legal tender in payment of
any debts and dues, public and private, at the time of payment by good and
sufficient check subject to collection and drawn on a New York City bank or
trust company which is a member of the New York Clearinghouse Association.
(c) All sums and charges other than fixed rent due and payable by the
Tenant pursuant to this lease, including, without limitation, charges for
electricity (as defined in Article TEN), escalation charges (as defined in
Article THIRTY) and late charges assessed pursuant to this lease are called
"additional rent". All regularly recurring items of additional rent, including,
without limitation, escalation charges which are payable on a monthly basis
pursuant to the provisions of Article THIRTY, shall be due and payable together
with the fixed rent on the first day of each month during the term of this
lease. All other items of additional rent shall be paid to the Landlord within
fifteen days after delivery of a notice or demand therefor, unless otherwise set
forth herein. Fixed rent and additional rent are collectively referred to herein
as "rent". The failure of the Tenant to make any payment of additional rent
shall entitle the Landlord to exercise all of the rights and remedies provided
herein for the non-payment of fixed rent.
(d) Intentionally omitted.
(e) If any installment of rent shall not be paid within ten (10) days
following the date on which the same shall be due and payable pursuant to this
lease then, in addition to, and without waiving or releasing any other rights
and remedies of the Landlord, the Tenant shall pay to the Landlord a late charge
of one and one-half (1 1/2%) percent per month computed (on the basis of a
30-day month) from the date on which each such installment became due and
payable to the date of payment of the installment on the amount of each such
installment or installments, as liquidated damages for the Tenant's failure to
make prompt payment, and the same may be collected on demand.
(f) In the event any check issued by the Tenant is dishonored for any
reason, the Tenant shall submit a replacement check within three (3) business
days following notice from the Landlord that the check was dishonored. Tenant's
failure to submit a replacement check within such time period shall constitute
an Event of Default under this lease.
(g) Notwithstanding the foregoing, provided no Event of Default shall have
occurred which shall remain uncured, the Tenant shall not be required to pay
fixed rent with respect to a particular portion of the Premises for the period
beginning on the Commencement Date for that portion of the Premises and ending
four months after the completion of the Landlord's Initial Work (as described in
the Work Sheet attached hereto and made a part hereof); provided, however, that
the Tenant shall during such abatement period pay all other amounts due under
this lease including, but not limited to, any additional rent payable pursuant
to Article THIRTY of this lease and any service charges for electric current,
and overtime elevator, air-conditioning or heat services. Upon the occurrence of
an Event of Default, the fixed rent at the monthly rate set forth in this lease
shall be payable during the period in which the Tenant would otherwise be
entitled to the use of the Premises free of fixed rent. Any such rent payment
shall be paid within five days after demand therefore and shall constitute
additional rent under this lease.
ARTICLE TWO
USE
(a) The Tenant shall use the Premises only for a distribution center in
connection with Tenant's business of providing high-quality photography, moving
images, art prints and related products, and for general office purposes in
connection therewith, except that if all or a portion of the Premises shall be
sublet in accordance with the terms of this lease, or if this lease shall be
assigned in accordance with the terms of this lease, then the use shall be
consistent with the certificate of occupancy for the building
(b) If any portion of the Premises consists of basement space, such portion
shall be used only for storage purposes.
(c) No auction sale and no other sale of all or substantially all of the
Tenant's property, stock, fixtures and machinery, except a sale made in
connection with an assignment of this lease to another tenant for which the
Landlord's consent shall have been obtained, shall be held at the Premises
unless the provisions of Article THIRTY-ONE (g) of this lease shall have been
complied with.
(2)
ARTICLE THREE
REPAIRS: NOISE AND VIBRATION
(a) The Tenant shall take good care of the Premises and the fixtures,
appurtenances, equipment and facilities therein and shall make, as and when
needed, all repairs in and about the Premises required to keep them in good
order and condition; such repairs to be equal in quality to the original work
provided that the Tenant shall not be obligated for structural or exterior
repairs to the building or for repairs to the systems and facilities of the
building for the use or service of tenants generally, except where structural or
exterior repairs or repairs to such systems and facilities are made necessary by
reason of one or more of the occurrences described below in clauses (i) through
(iv) of this Article THREE (a). All repairs for which the Tenant is responsible
pursuant to this Article shall be made by a contractor reasonably approved by
the Landlord. Should the Tenant fail to repair any condition in or about the
Premises or the fixtures, appurtenances, equipment and facilities therein which
is of such a nature that its neglect would result in damage or danger to the
building, its fixtures, appurtenances, facilities and equipment, or to its
occupants (of which Landlord's judgment, reasonably exercised, shall be
conclusive) or, in the case of repairs of any other nature, should the Tenant
have failed to make the required repairs or to have begun in good faith, the
work necessary to make them within five business days after notice from the
Landlord of the condition requiring repair, the Landlord may, in either such
case, immediately enter the Premises and make the required repairs at the
expense of the Tenant. The Landlord may make, at the expense of the Tenant, any
repairs to the building or to its fixtures, appurtenances, facilities or
equipment, whether of a structural or any other nature, which are required by
reason of damage or injury due (i) to the negligence or willful misconduct of
the Tenant or its employees, agents, licensees or visitors; (ii) to the moving
into or out of the building, of property being delivered to the Tenant or taken
from the Premises by or on behalf of the Tenant; (iii) to the installation,
repair or removal, use or operation of the property of the Tenant in the
Premises; or (iv) to the faulty operation of any machinery, equipment, or
facility installed in the Premises by or for the Tenant. The Tenant will pay the
cost of any repairs made by the Landlord pursuant to this paragraph within
fifteen days after presentation of bills therefor, or the Landlord may, at its
option, add such amounts to any installment or installments of rent due under
this lease and collect the same as additional rent. The liability of the Tenant
under this Article THREE shall survive the expiration or other termination of
this lease for a period of one year.
(b) Except to the extent hereinabove set forth, and subject to the
provisions of Article SIXTEEN, the Landlord shall maintain in working order and
repair the exterior and the structural portions of the building, including the
structural portions of the Premises, and the public portions of the building
interior and the building plumbing, electrical, heating, fire protection, life
safety, sprinkler and ventilating systems, (excluding all ductwork, diffusers,
thermostat controls and any other part of the ventilating system located outside
of the machine room, if any, on the floor) serving the Premises. The Tenant
shall give prompt notice of any defective condition in the Premises for which
the Landlord may be responsible hereunder. There shall be no allowance to the
Tenant for diminution in rental value and no liability on the part of the
Landlord by reason of inconvenience, annoyance or injury to business arising
from the Landlord or others making repairs, alterations, additions or
improvements in or to any portion of the building or the Premises or in and to
the fixtures, appurtenances or equipment thereof. It is specifically agreed that
the Tenant shall not be entitled to any set off or reduction of rent by reason
of any failure of the Landlord to comply with the provisions of this or any
other Article of the lease. Landlord shall use reasonable commercial efforts to
minimize any interference with the conduct of Tenant's business on account of
the work undertaken by Landlord in accordance with this Article Three, but
Landlord shall not be required to perform any such work on an overtime basis.
(c) Tenant shall not install or maintain equipment, machinery or
manufacturing equipment of any description in the Premises, the operation of
which produces noise or vibration which is transmitted beyond the Premises. If
the Tenant does install such equipment or machinery and the Landlord deems it
necessary that the noise or vibration of such machinery or equipment be
diminished, eliminated, prevented or confined to the Premises, the Landlord may,
at its election, give written notice to the Tenant, requiring that the Tenant
provide and install rubber or other approved settings for absorbing, preventing
or decreasing the noise or vibration of such machinery or equipment within
fifteen days and if such measures are unsuccessful that the Tenant immediately
(3)
remove said equipment from the Premises within fifteen days. The judgment of the
Landlord of the necessity of such installation shall be conclusive, and the
installation shall be made in such manner and of such material as the Landlord
may direct. Should the Tenant fail to comply with such request within fifteen
days, the Landlord may do the work necessary to absorb, prevent or decrease the
noise or vibration of such machinery or equipment and the Tenant will pay to the
Landlord the cost of such work within fifteen days after demand or such cost
may, at the option of the Landlord, be added to any installment or installments
of rent under this lease and shall be payable by the Tenant as additional rent.
ARTICLE FOUR
ALTERATIONS AND FIXTURES
(a) The Tenant shall not make any alteration, addition or improvement in or
upon the Premises, nor incur any expense therefor, without having first obtained
the written consent of the Landlord therefor. The Tenant shall not be required
to obtain the Landlord's consent for alterations, additions or improvements
which are decorative in nature, such as painting or carpeting (although the
Tenant shall give the Landlord prior written notice of the performance of such
work). If the Tenant shall desire to make alterations, additions or improvements
to fit out the Premises for the Tenant's use which will not affect the exterior
of the building or adversely affect the structure of the building or the
operation of any of the systems or facilities of the building for the use of any
tenant or violate the requirements of government hereafter referred to, the
Landlord's approval will not be unreasonably withheld or delayed. In no event
shall the Tenant make any alteration at any time when an Event of Default is
outstanding. Any and all alterations may be made only subject to and in
compliance with the following, as well as all other reasonable rules and
regulations promulgated by the Landlord with respect to the performance of
alterations:
(i) Prior to the commencement of any alteration, the Tenant shall, except
in an emergency, give at least 30 days' notice to Landlord for all
alterations and shall obtain the Landlord's prior approval of the licensed
architect and/or licensed professional engineer and the contractors and/or
mechanics selected by the Tenant, as well as the Landlord's prior written
approval of detailed plans and specifications prepared by the approved
architect and/or engineer and shall reimburse the Landlord for its
out-of-pocket expenses for outside consultants to review such plans and
specifications; and no alterations shall be made except as are in all
material respects in accordance with such plans and specifications or any
approved changes thereto. If requested by the Landlord, the Tenant shall
submit a copy of the general contractor's contract or other contract for
the alterations which shall show the cost thereof.
(ii) No alteration shall be commenced until the Tenant shall have obtained
and paid for all required permits and authorizations of any City, State or
Federal governmental agency or any board, bureau, department or body
thereof, having or asserting jurisdiction, copies of which shall be
supplied to the Landlord. Landlord shall reasonably and diligently
cooperate with Tenant in connection with the performance of its
alterations, additions or improvements, and with respect to alterations
approved by Landlord, shall cooperate (but at no expense to Landlord) with
Tenant and execute such documents as may be reasonably required by Tenant
to obtain such permits and authorizations, including, without limitation,
alteration applications.
(iii) Prior to the commencement of any alteration, the Tenant shall submit
to the Landlord duplicate original policies or certificates thereof of
worker's compensation insurance covering all persons employed in connection
with the work, and builder's all risk and comprehensive general public
liability insurance in such reasonable and customary amounts and with such
companies as may be reasonably approved by the Landlord and such coverage
shall be maintained until all such alterations have been completed. Such
policies shall name the Landlord and any mortgagee or holder of any ground
or underlying lease as additional named insureds.
(4)
(iv) Upon completion of the alterations, the Tenant, at the Tenant's
expense shall obtain certificates of final approval as may be required by
any governmental agency, board, bureau, department or body thereof, and
shall deliver such approvals to the Landlord, together with "as-built"
plans and specifications for such alterations. In addition, one copy of
final drawings shall be delivered to the Landlord in AutoCad, Release 14
format, either on a 3 1/2" disk or CD Rom, or such other format as shall
from time to time be reasonably designated by the Landlord.
(v) The cost of all alterations shall be paid when due so that the Premises
shall at all times be free of liens for labor and materials supplied or
claimed to have been supplied to the Premises and free from any
encumbrances, or security interests.
(vi) All alterations, additions or improvements shall be made and installed
in a good and workmanlike manner and shall comply with all requirements, by
law, regulation or rule, of the Federal, State and City Governments and all
subdivisions and agencies thereof, and with the requirements of the New
York Fire Insurance Exchange, New York Board of Fire Underwriters and all
other bodies exercising similar functions, and shall conform to any
particular reasonable requirements of the Landlord expressed in its consent
for the making of any such alterations, additions, and improvements. The
Landlord's review and approval of the Tenant's plans shall not constitute,
nor be deemed to constitute a representation or agreement by the Landlord
that such plans and specifications comply with such requirements. Such
compliance shall be the sole responsibility of the Tenant.
Any such work once begun shall be completed with all reasonable dispatch,
but shall be done at such time and in such manner as not to interfere
unreasonably with the occupancy of any other tenant or the progress of any work
being performed by or on account of the Landlord. If requested to do so by the
Tenant in connection with the Landlord's approval of any alteration, addition or
improvement, the Landlord will advise the Tenant whether the alteration,
addition or improvement will be required to be removed by the Tenant at the
expiration or earlier termination of this lease or may remain upon the Premises
to become the property of the Landlord. If no such advice is given by the
Landlord, the provision of subdivision (b) of this Article shall apply.
(b) All alterations, additions or improvements, which may be made or
installed in or upon the Premises (whether made during or prior to the term of
this lease or during the term of any prior lease of the Premises by the
Landlord, the Tenant or any previous tenant), except the furniture, trade
fixtures, stock in trade, and like personal property of the Tenant, shall be
conclusively deemed to be part of the freehold and the property of the Landlord,
and shall remain upon the Premises, and, upon the expiration or any termination
of the term of this lease, shall be surrendered therewith as a part thereof,
except for any Specialty Alterations which shall, unless the Landlord advises
the Tenant to the contrary, be removed by the Tenant, at the Tenant's expense,
upon the expiration or earlier termination of this lease, provided, however,
that alterations, additions and improvements installed by the Tenant at Tenant's
expense shall remain the property of Tenant until the expiration or earlier
termination of this lease, but Tenant shall not remove, destroy or alter such
alterations, additions and improvement without Landlord's consent and, in any
event, shall replace such alterations, additions and improvements with
alterations, additions or improvements of equal or greater value. A "Specialty
Alteration" shall mean an alteration which is in excess of standard office
installations such as kitchens, cafeterias, vaults, sloping, terraced or raised
floors, internal staircases, and other slab penetrations, data centers, fire
suppression or uninterrupted power supply systems, generators, fuel tanks,
dumbwaiters, and other improvements of a similar nature. The Tenant, at or prior
to the expiration or any termination of the term of this lease shall, at its own
expense, remove all its furniture, trade fixtures, stock in trade and like
personal property. The Tenant shall restore and repair, at its own cost and
expense, any damage or disfigurement of the Premises occasioned by any such
removals or remaining after such removals, so as to leave the Premises in good
order and condition or, the Landlord, at its option, may do such restoration and
repair and the Tenant will pay the reasonable cost thereof upon demand. If any
furniture, trade fixtures, stock in trade or other personal property of the
Tenant shall not be removed at the expiration or any termination of this lease,
the Landlord, at the Landlord's option, may treat the same as having been
irrevocably abandoned, in which the Tenant shall have no further right, title or
interest therein and the Landlord may remove the same from the Premises,
disposing of them in any way which the Landlord sees fit
(5)
to do, and the Tenant shall, on demand, pay to the Landlord the expense incurred
by the Landlord for the removal thereof, as well as the cost of any restoration
of the Premises above provided. The Tenant's obligations under this subdivision
(b) of this Article FOUR shall survive the expiration of this lease for a period
of one year.
(c) The Landlord may at any time during the term of this lease, change the
arrangement or location of the entrance or passageways, doors and doorways, and
the corridors, elevators, stairs, toilets or other parts of the building used by
the public or in common by the Tenant and other tenants (including, without
limitation, the conversion of elevators from a manually-operated to an automatic
self-service basis) and may alter staffing of the building and the scale and
manner of the operation thereof, provided that the services to which the Tenant
is entitled as specified in this lease are not diminished and may alter the
facilities, fixtures, appurtenances and equipment of the building as it may deem
the same advisable, or as it may be required so to do by any governmental
authority, law, rule or regulation, and provided further that Landlord shall use
commercially reasonable efforts to minimize interference with the conduct of
Tenant's business in making such changes and provided that such changes do not
materially reduce; the accessibility of the Premises. The Landlord may change
the name, street number or designation by which the building is commonly known.
(d) The Tenant shall not at any time prior to or during the term of this
lease, directly or indirectly, employ or permit the employment of any
contractor, mechanic or laborer in or about the Premises, whether in connection
with any alteration or improvement or the providing of any services or
otherwise, if such employment would, in the reasonable judgment of the Landlord,
disrupt, or interfere or cause any conflict with, any other contractors,
mechanics, or laborers engaged by the Landlord or any other tenant in the
building. In the event of any such disruption, interference or conflict, the
Tenant, upon demand of the Landlord, shall immediately cause all contractors,
mechanics or laborers causing such disruption, interference or conflict to leave
the building.
(e) The Tenant, at its own sole cost and expense, shall defend the Premises
and the Landlord against all suits for the enforcement of any mechanics lien or
any bond in lieu of such lien, and the Tenant hereby indemnifies the Landlord
and the Premises against any and all damages, expenses, or liabilities resulting
from any such lien or suit. Should the Tenant fail to commence or diligently
proceed to timely discharge any such lien, the Landlord may do so by payment,
bond, or otherwise on thirty days' prior written notice to the Tenant and the
amount paid or incurred therefor by the Landlord shall be payable by the Tenant
as additional rent. Tenant represents and warrants that it has not performed any
alterations in the Premises prior to the Initial Premises Commencement Date.
(f) If, in connection with the performance of any alterations, additions or
improvements to the Premises, there is any violation against the building, the
curing of which shall be the responsibility of Landlord, which shall result in
actual delay to Tenant or prevent Tenant from obtaining any governmental
permits, consents, approvals or other documentation to commence or complete
Tenant's alterations, additions or improvements, or prevent the physical (as
opposed to legal) occupancy of the Premises, or if any governmental agency with
jurisdiction orders Tenant not to occupy the Premises, then Landlord shall
promptly and diligently proceed to cure and remove of record such violations and
Tenant shall be entitled to an abatement of rent equal to the fixed rent and
additional rent allocable to the portion of the Premises in which such
alterations, additions or improvements are prevented from being performed or
completed, or with respect to which Tenant has been ordered not to occupy, for
the period during which Tenant shall be so prevented from performing such
alterations, additions or improvements. Such abatement period shall not commence
any earlier than the date which is ten business days following notice from
Tenant to Landlord of a violation which prevents Tenant from proceeding with its
alterations, additions or improvements, and such abatement period shall only
commence if Landlord has not cured such violation within the ten-business-day
period following Tenant's notice.
ARTICLE FIVE
COMPLIANCE WITH GOVERNMENTAL RULES AND REGULATIONS
The Tenant shall promptly comply, at the Tenant's own expense, with all
laws, ordinances, regulations and requirements now or hereinafter enacted, of
the City, State and Federal Government,
(6)
and all subdivisions and agencies thereof, and the New York Fire Insurance
Exchange, the New York Board of Fire Underwriters, and of any fire insurance
rating organization, and of all other departments, bureaus, officials, boards
and commissions with regard to the Premises or the use thereof by the Tenant,
and (if the Premises are situated on the ground floor) the sidewalks adjoining
the same in so far as such compliance is made necessary by the Tenant's use of
the sidewalks, provided that the Tenant shall not be required to make structural
alterations or additions to the Premises, alterations to any building systems
servicing the Premises, or alterations to any common areas in the building
utilized by Tenant and other tenants, except where the same are required by
reason of the nature of the Tenant's use of the Premises, the alterations
performed in the Premises by the Tenant, the manner in which its business is
carried on in the Premises, or a failure on the part of the Tenant to conform to
the provisions of this lease. Tenant shall not be required to comply with any
such laws, ordinances, regulations and requirements for so long as Tenant shall
be contesting, diligently and in good faith, Tenant's obligation to comply
therewith through appropriate proceedings brought in accordance with applicable
law, provided that Tenant's failure to comply shall have no adverse effect on
Landlord or on other tenants in the building. The Tenant will not permit the
maintenance of any nuisance upon the Premises or permit its employees, licensees
or visitors to do any illegal act therein, or in and about the building after
notice thereof from the Landlord. If any such law, ordinance, regulation or
requirement shall not be promptly complied with by the Tenant, then the Landlord
may, at its option, enter upon the Premises to comply therewith, and should any
fine or penalty be imposed for failure to comply therewith or by reason of any
such illegal act, the Tenant agrees that the Landlord may, at its option, pay
such fine or penalty, which the Tenant agrees to repay to the Landlord, with
interest (as set forth in Article Twenty-Four) from the date of payment, as
additional rent.
ARTICLE SIX
RULES AND REGULATIONS
The Tenant and the Tenant's employees, and any other persons subject to the
control of the Tenant, shall well and faithfully observe all the rules and
regulations annexed hereto as Schedule A, and also any and all reasonable rules
and regulations affecting the Premises, the building or the equipment,
appurtenances, facilities and services thereof, hereafter promulgated by the
Landlord. The Landlord may at any time, and from time to time, prescribe and
regulate the placing of safes, machinery and other things, and regulate which
elevator and entrance shall be used by the Tenant's employees, and for the
Tenant's shipping; and may make such other and further rules and regulations as
in its reasonable judgment may, from time to time, be needed or desirable for
the safety, care or cleanliness of the building and for the preservation of good
order therein. The Landlord shall not be liable to the Tenant for violations of
any rules and regulations by any other tenant, its servants, employees, agents,
visitors or licensees. Notwithstanding the foregoing, the Landlord agrees that
it shall not discriminate against the Tenant in the enforcement of the rules and
regulations promulgated by the Landlord for the building.
ARTICLE SEVEN
PLATE GLASS
The Landlord may, at its option, either (i) at the Tenant's expense, keep
the plate glass, if any, in the Premises insured in the name of the Landlord
against loss or damage, the premium for which, whether by separate policy or as
a part of a schedule of another policy, shall be paid by the Tenant to the
Landlord, upon demand, or (ii) require the Tenant, at the Tenant's expense, to
keep the plate glass, if any, in the Premises insured in the name of the
Landlord against loss or damage, in which event, the Tenant shall deliver such
policy and evidence of due payment of the premium therefor to the Landlord. The
Tenant shall promptly replace, at its own expense, any and all plate and other
glass damaged or broken from any cause whatsoever in and about the Premises. If
the Tenant fails to do so, the Landlord shall have the right to replace such
glass at the Tenant's expense.
(7)
ARTICLE EIGHT
CARE OF SIDEWALKS
If the Premises, or any part thereof, consist of a first floor or any part
thereof, the Tenant shall, at the Tenant's own expense, keep the sidewalk,
gutter and curb in front thereof in a clean condition, but Tenant shall not be
responsible for removal of snow and ice from the sidewalk.
ARTICLE NINE
LANDLORD'S ACCESS TO THE PREMISES
(a) The Tenant shall, without in any way affecting the Tenant's obligations
hereunder, and without constituting any eviction, permit the Landlord and its
agents and designees: (i) at all reasonable hours, upon reasonable notice, to
enter the Premises and have access thereto, for the purpose of inspecting or
examining them and to show them to other persons; or (ii) to enter the Premises
(including, specifically, all mechanical and air conditioning rooms located
therein) to make repairs and alterations, and to do any work on the Premises or
any adjoining premises and any work in connection with excavation or
construction on any adjoining premises or property (including, but not limited
to, the shoring up of the building) and to take in any of the foregoing
instances, any space needed therefor, provided that any space so taken shall not
be material to the conduct of Tenant's business in the Premises. The Tenant
shall permit the Landlord to erect and maintain ducts, pipes and conduits in and
through the Premises. In the exercise of the rights of the Landlord reserved
under this Article NINE, the Landlord will do so in a manner which minimizes, so
far as is practicable, the interference with the Tenant's use of the Premises or
Tenant's wiring or improvements to the Premises and where ducts, pipes or
conduits are to be erected through the Premises will locate them along walls or
ceilings wherever practicable.
(b) In the event that the Premises shall, in the Landlord's reasonable
judgment, become substantially vacated before the expiration of this lease, or
in the event the Tenant shall be removed by summary proceedings or in the event
that, during the last month of the term, the Tenant shall have removed all or
substantially all of the Tenant's property therefrom, the Landlord may
immediately enter into and upon said Premises for the purpose of decorating,
renovating or otherwise preparing same for a new tenant, without thereby causing
any abatement of rent or liability on the Landlord's part for other
compensation, and such acts shall have no effect upon this lease.
(c) If the Tenant or an officer or authorized employee of the Tenant shall
not be personally present to open and permit an entry into said Premises, at any
time, when for any reason an entry therein shall be necessary or permissible
hereunder, the Landlord or the Landlord's agents, may enter the same by a master
key, or may forcibly enter the same without rendering the Landlord or such
agents liable therefor (if during such entry the Landlord shall accord
reasonable care to the Tenant's property) and without in any manner affecting
the obligations and covenants of this lease and in no event shall any such entry
by the Landlord or its agents be deemed an acceptance of a surrender of this
lease, either expressed or implied, nor a waiver by the Landlord of any covenant
of this lease on the part of the Tenant to be performed.
ARTICLE TEN
ELECTRIC CURRENT; LIVE STEAM
(a) So long as electric current is to be supplied by the Landlord, the
Tenant covenants and agrees to purchase the Tenant's requirements therefor at
the Premises from the Landlord or the Landlord's designated agent at a price
equal to 108% of the Rates (as hereinafter defined) set forth in the rate
schedule of Consolidated Edison Company of New York, Inc. applicable to the
building (or the conjunctional group in which the building is included), plus an
amount equal to all sales, use and gross receipt taxes and other governmental
charges or levies, generally applicable to the purchase and sale of electricity
in New York City (and without regard to whether the Landlord is exempt from
paying or collecting any such tax, charge or levy); including any adjustment for
time-of-day for either demand or consumption. As used herein, the term "Rates"
shall mean the rates for
(8)
all components of the aggregate cost of purchasing electricity for the building,
including, without limitation, all charges related to the generation,
transmission, distribution and service and all charges for consumption and
demand (including, without limitation, all seasonal and time-of-day adjustments
and fuel escalation charges relating to such consumption and demand charges).
All amounts payable under this Article TEN shall constitute additional rent for
the purpose of the enforcement of the Landlord's rights.
(b) Where more than one meter measures the service of the Tenant in the
building, the service rendered through each meter may be computed and billed
separately in accord with the rates herein provided for. No current shall be
furnished until the equipment of the Tenant has been approved by the proper
authorities, and after such approval, no changes shall be made in such equipment
without the written consent of the Landlord. The Tenant shall pay, upon demand,
the bills for electric current furnished and the use of meters or the Landlord
may, at its option, add such amounts to any installment or installments of fixed
rent due under this lease and collect the same as additional rent. The Tenant
shall comply with such rules, regulations and contract provisions as are
customarily prescribed by public service corporations supplying such services,
for consumption similar to that of the Tenant.
(c) The Landlord may discontinue the supply of electric current under
subdivision (a) at any time on sixty (60) days' notice to the Tenant without
being liable to the Tenant therefor or without in any way affecting this lease
or the liability of the Tenant hereunder or causing the diminution of rent, and
the same shall not be deemed to be a lessening or diminution of services within
the meaning of any law, rule, or regulation now or hereafter enacted,
promulgated, or issued. Should the Landlord give such notice of discontinuance,
the Tenant shall make the Tenant's own arrangements to receive such service
direct from such public utility corporation serving the building and the
Landlord shall permit the Landlord's wires, conduits and meters, to the extent
to which they are safely available for such use and to the extent to which they
may be used under any applicable governmental regulations or the regulations of
such public utility, to be used for the purpose. Should any additional or other
wiring, conduits, meters or any other or different distribution equipment be
required in order to permit the Tenant to receive such service directly from the
public utility, the same will be installed, as the Landlord shall elect, either
by the Landlord or by the Tenant, the cost of which shall be shared equally by
Landlord and Tenant. In the case of central distribution equipment which is used
in connection with the distribution or metering of current supplied to the
Tenant and other tenants of the building, and which is required to be installed
under governmental regulations or the regulations of such utility, the cost of
installation thereof will be prorated among the several tenants, serviced
through the distribution facility in the proportion which their average
consumption of electric current over the next preceding period of not less than
six month's duration bears to the total consumption of electric current by all
tenants during such period, and the Tenant shall pay to the Landlord the fifty
percent (50%) of Tenant's share of such cost of installation, apportioned as
above, within five (5) days following receipt of a statement showing the cost of
the distribution equipment and the manner in which the cost has been allocated
to the Tenant. All such facilities installed by the Tenant shall be installed in
a workmanlike manner which complies with applicable governmental regulations and
the regulations of the public utility. The Landlord will in any such case permit
any pipe-chases or channels available in the building to be used by the Tenant
for the Tenant's cables and conduits, to the extent that the same may be
available and may be safely used for the purpose.
(d) The Landlord shall not in any way be liable or responsible to the
Tenant for any loss or damage or expense which the Tenant may sustain or incur
if either the quantity or character or electric service is changed or is no
longer available or suitable for the Tenant's requirements, nor shall the
Landlord be in any way responsible for any interruption of service due to
breakdowns, repairs, malfunction of electrical equipment or any other cause
relating to electrical service which is beyond the Landlord's reasonable
control. The Tenant covenants and agrees that at all times its use of electric
current shall never exceed the capacity of existing feeders to the Tenant's
floor(s) or space (if less than an entire floor) or the capacity of the risers
or wiring installation in the building. The Tenant agrees not to connect any
additional electrical equipment to the building electrical distribution system,
other than lamps, typewriters, computers, scanners, printers, servers, copiers,
and other small office machines which consume comparable amounts of electricity,
without the Landlord's prior written consent. If, in the Landlord's sole
judgment, reasonably exercised, the
(9)
Tenant's electrical requirements necessitate installation of an additional
riser, risers or other necessary equipment, the same may be installed by the
Landlord at the sole cost and expense of the Tenant (together with Tenant's
Proportionate Share of any electrical panels which are required to be installed
as a result of the installation of such additional risers), which shall be
chargeable and collectible as additional rent. If the Tenant makes written
request to install a riser or risers to supply the Tenant's electrical
requirements, such request shall be subject to the prior written consent of the
Landlord in each instance, and such riser, risers or other equipment shall be
installed by the Landlord at the sole cost and expense of the Tenant, if in the
Landlord's sole judgment, reasonably exercised, the same are necessary and will
not 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. If the Tenant is not utilizing the full electrical
capacity available to the Premises, the Landlord shall have the right to make
such excess capacity available to other occupants of the building. Prior to
taking such excess capacity, Landlord shall notify Tenant of its intention to do
so, and Tenant shall have two weeks in which to demonstrate that Tenant has an
impending need for such electrical capacity. If in Landlord's reasonable
judgment, Tenant fails to demonstrate an impending need for such electrical
capacity, Landlord shall be entitled to proceed to make such excess capacity
available to other occupants of the building.
(e) If there be any facilities for the supply of live steam in the
building, such steam shall be supplied to the Tenant only if separate agreements
are made therefor and pursuant to such arrangements. In the event that such
separate agreements shall be made, the appropriate provisions of this Article
TEN shall be applicable thereto.
ARTICLE ELEVEN
CONDEMNATION AND DEMOLITION
(a) If the Premises or any part thereof, shall be taken or condemned for
any public or quasi public use (other than for temporary use or occupancy), this
lease and the term hereby granted shall terminate as of the date of vesting of
title by reason of such taking. If any other part of the building shall be so
taken and such taking shall, in the reasonable judgment of the Landlord, make
the operation of the building impractical, unprofitable or uneconomical or would
make substantial structural alterations or reconstruction of the building
necessary (even though no part of the Premises be taken), the Landlord may, at
its option, give to the Tenant, at any time after the vesting of title and prior
to the actual taking of possession, thirty (30) days' notice of intention to
terminate this lease, and upon the date designated in such notice, this lease
and the term hereby granted shall terminate. Anything herein to the contrary
notwithstanding, if ten (10%) percent or less of the Premises shall be so
acquired or condemned, the Landlord, at its option, may elect not to terminate
this lease and, in such case, the Landlord shall, at its expense, restore that
part of the Premises not so acquired or condemned to a self-contained rental
unit exclusive of the Tenant's alterations. In no event shall any condemnation
award be apportioned, and the Tenant hereby assigns to the Landlord all right
and claim to any part of such award, but the rent, and all other sums payable by
the Tenant, shall be apportioned as of the date of any such termination of this
lease with respect to all or part of the Premises, as the case may be, and in
the case of a partial taking, prospective rent obligations which are based on
square footage shall be adjusted accordingly. Nothing contained in the foregoing
portion of this Article ELEVEN shall be deemed to prevent the Tenant's making
claim for and retaining an award for the damage to or loss of value of its trade
fixtures and such of the installations made by the Tenant as remain the Tenant's
property or from making claim for and retaining any award which may be made to
the Tenant for the Tenant's moving expenses if, and to the extent that, the
award to be claimed and retained by the Tenant is independent of and does not
result in a diminution of the award, and is not payable out of the award to the
Landlord for the taking of the land, building and the Landlord's other property.
(b) If the Landlord shall desire to demolish or substantially alter the
building wherein the premises are located, the Landlord shall have the right and
option to terminate the term of this lease at any time during the term thereof
upon giving to the Tenant not less than six months' notice of the Landlord's
election to terminate this lease and of the date, which shall be the last day of
a calendar month, not less than 180 days following the date of the Landlord's
notice of election to terminate, on which Landlord elects that this lease shall
terminate and come to an end, together with an
(10)
affidavit, sworn to by an officer of the Landlord, if the Landlord at such time
is a corporation, or by a general partner of the Landlord, if the Landlord at
such time is a partnership, or by the Landlord, if the Landlord at such time is
an individual, to the effect that the Landlord, its successor in interest or a
lessee intends to demolish or substantially alter the building containing the
premises. If such notice and affidavit are given to the Tenant, then this lease
shall terminate and come to an end on the date of termination specified in the
Landlord's notice, as if that date were the date originally fixed for the
termination of the term of this lease, and on such date the Tenant shall quit,
vacate and surrender up the premises in accord with the provisions of this lease
relating to surrender at the expiration of the term.
ARTICLE TWELVE
MECHANIC'S LIENS
The Tenant will not permit, during the term hereby granted, any mechanic's
or other lien or order for payment of work, labor, services, or materials
furnished or to be furnished to attach to or affect the Premises or any portion
thereof, and agrees that no such lien or order shall under any circumstances
attach to or affect the fee, leasehold or other estate of the Landlord herein,
or the building. The Tenant's obligation to keep the Premises in repair, and its
right to make alterations therein, if any, shall not be construed as the consent
of the Landlord to the furnishing of any such work, labor or materials within
the meaning of any present or future lien law. Notice is hereby given that the
Tenant has no power, authority or right to do any act or to make any contract
which may create, or be the foundation for, any lien upon the fee or leasehold
estate of the Landlord in the Premises or upon the land or building of which
they are a part or the improvements now erected or hereafter to be erected upon
the Premises or the land, or building of which the Premises are a part; and if
any such mechanic's or other lien or order shall be filed against the Premises
or the land or building of which the Premises are a part, the Tenant shall,
within sixty (60) days thereafter, discharge said lien or order by payment,
deposit or by bond fixed in a proper proceeding according to law. If the Tenant
shall fail to take such action, or shall not cause such lien or order to be
discharged within sixty (60) days after the filing thereof, the Landlord may,
after five (5) days' notice to Tenant, pay the amount of such lien or discharge
the same by deposit or by bond or in any other manner according to law, and pay
any judgment recovered in any action to establish or foreclose such lien or
order, and any amount so paid, together with the expenses incurred by the
Landlord, including all reasonable attorneys' fees and disbursements incurred in
any defense of any such action, bonding or other proceeding, shall be deemed
additional rent. Any reasonable expenses incurred by the Landlord in connection
with the examination of title to the Premises in order to ascertain the
existence of any lien or encumbrance and the discharge of record thereof, shall
be payable by the Tenant to the Landlord on demand, together with interest as
aforesaid as additional rent.
ARTICLE THIRTEEN
SUBORDINATION
(a) Subject to the Tenant obtaining a non-disturbance agreement as provided
in paragraph (d) of this Article THIRTEEN from any existing or future
mortgagee(s) or underlying lessors, this lease, and all the rights of the Tenant
hereunder, are and shall be subject and subordinate to any and all mortgages now
or hereafter liens either in whole or in part on the building, or the land on
which it stands, and also to any and all other mortgages covering other lands or
lands and buildings, which may now or hereafter be consolidated with any
mortgage or mortgages upon the building and the land on which it stands or which
may be consolidated and spread to cover the building and such land and any such
other lands or lands and buildings, and any extension, renewal or modification
of any such mortgages, and to any and all ground or underlying leases which may
now or hereafter affect the buildings or the land on which it stands, and any
extensions, renewals or modifications thereof. This clause shall be
self-operative and no further instrument of subordination (other than the
non-disturbance agreement referred to above and in paragraph (d) below) shall be
required by any ground or underlying lessor or by any mortgagee, affecting any
lease or the building or the land on which it stands. In confirmation of such
subordination, the Tenant shall execute promptly any certificate, in recordable
form, that the Landlord may reasonably request.
(11)
(b) The Tenant hereby agrees that, in the event that any mortgagee shall
succeed to the rights of the Landlord, or if any Landlord of any underlying
lease shall succeed to the position of the Landlord under this lease, then the
Tenant will recognize such successor Landlord as the Landlord of this lease and
pay the rent and attorn to and perform the provisions of this lease for the
benefit of any such successor Landlord. No documentation other than this lease
shall be necessary to evidence such attornment but the Tenant agrees to execute
any documents, in recordable form, reasonably requested by the successor
Landlord to confirm such attornment or to otherwise carry out the intent and
purposes of this Article THIRTEEN.
(c) If, in connection with obtaining financing or refinancing for the
building of which the Premises form a part, a lender shall request modifications
to this lease as a condition to such financing or refinancing, the Tenant will
not unreasonably withhold, delay or defer its consent thereto, provided that
such modifications do not increase the obligations of the Tenant hereunder or
adversely affect the Tenant's leasehold interest. A provision requiring the
Tenant to give notices of any defaults by the Landlord to such lender and/or
permit the curing of such defaults by such lender together with the granting of
such additional time for such curing as may be reasonably required for such
lender to get possession of the building shall not be deemed to increase the
Tenant's obligations or adversely affect the Tenant's leasehold interest. In no
event shall a requirement that the consent (not to be unreasonably withheld) of
any such lender be given for any modification, termination or surrender of this
lease be deemed to materially adversely affect the leasehold interest hereby
created.
(d) Anything herein to the contrary notwithstanding, the Landlord
represents and warrants to the Tenant that as of the date of this lease there is
no mortgage or superior lease encumbering the Premises. The Landlord, at no cost
to Tenant, shall obtain from any future mortgagee or from any future lessor of
any underlying lease, an agreement to the effect that, so long as no Event of
Default shall at the time have occurred and be continuing hereunder, the Tenant
shall not be made party to any proceeding to foreclose the mortgage or to
terminate the underlying lease; that the Tenant's possession of the Premises
under the term of this lease, shall not be terminated or disturbed as a result
of the foreclosure of any mortgage or termination of any underlying lease; that
such mortgagee or underlying lessor, as the case may be, will recognize the
Tenant as the direct tenant of such mortgagee or lessor on all of the terms and
conditions of this lease subject to the provisions hereinafter set forth;
together with such other terms as are customarily contained in a subordination,
non-disturbance and attornment agreement (any such agreement from a mortgagee or
lessor is called a "Nondisturbance Agreement"). The Tenant agrees it will
execute any agreement consistent with the foregoing provisions which may be
required to confirm the subordination of this lease subject to the
non-disturbance provisions above outlined. In any such agreement the Tenant
shall agree that, in the event that the mortgagee shall succeed to the rights of
the Landlord herein named, or if any landlord of any underlying lease shall
succeed to the position of the Landlord under this lease, then the Tenant will
recognize such successor landlord as the Landlord of this lease and pay the rent
and attorn to and perform the provisions of this lease for the benefit of any
such successor Landlord.
(e) Any Nondisturbance Agreement may be made on the condition that, and the
Tenant hereby agrees that, neither the mortgagee nor the lessor, as the case may
be, nor anyone claiming by, through or under such mortgagee or lessor, as the
case may be, including a purchaser at a foreclosure sale, shall be:
(i) liable for any previous act or omission of the Landlord under this
lease, except to the extent that a default continues after the date of
foreclosure or purchase of the Premises (in which case such default shall be
deemed to have occurred on the date of transfer of title to the Premises); or
(ii) subject to any credit, claim, counterclaim, demand, defense or offset
that previously accrued to the Tenant against the Landlord under the lease; or
(iii) bound by any previous modification of this lease (after notice to
Tenant of the existence of such mortgage or underlying lease), or by any
previous prepayment of rent for a period greater than one month, unless such
modification or prepayment shall have been expressly
(12)
approved in writing by any lessor or any mortgagee who shall have succeeded to
the rights of the Landlord under this lease; or
(iv) obligated to perform any alteration or improvements of the Premises
not expressly required under this lease; or
(v) be responsible for (1) the performance or completion of any
construction work to be performed by the Landlord under the lease, or (2) any
reimbursement or payment required by the Landlord to the Tenant or its designees
pursuant to the Lease on account of work performed by, or for the account of,
the Tenant; or
(vi) be liable for the repayment of any monies owed by the Landlord to the
Tenant; or
(vii) have any obligation with respect to any security deposited under the
lease unless and to the extent such security shall have been transferred to the
mortgagee or lessor, as the case may be, or anyone claiming by, through or under
such party.
(f) The provisions of paragraph (e) shall not be deemed to vitiate the
obligations of any mortgagee or lender succeeding to the Landlord's obligations
hereunder from and after the date such party succeeds to the Landlord's interest
under this lease.
ARTICLE FOURTEEN
CERTIFICATE OF OCCUPANCY
(a) A true copy of the Certificate of Occupancy of the building is
annexed hereto as Exhibit B.
(b) The Tenant shall immediately discontinue any use of the Premises, which
may, at any time, be claimed or declared by the City or State of New York or
other governmental authority to be in violation of or contrary to the
Certificate of Occupancy of the building, or by reason of which any attempt may
be made to penalize the Landlord or require the Landlord to secure any
Certificate of Occupancy other than the one, if any, now issued for the
building.
ARTICLE FIFTEEN
VAULTS
Notwithstanding anything herein contained, or shown on any sketch, plan or
schedule hereto attached, to the contrary, if any vault space forms a part of
the Premises, or adjoins the same, or any part or portion of the Premises is not
within the property line of the building or Premises, and if the use of the said
space shall hereafter be prevented or curtailed by exercise of any governmental
authority, the Tenant shall have no claim whatever upon the Landlord for the
loss of such space, by any abatement of the rent, or otherwise, nor shall the
Tenant be relieved from any obligations under this lease, and the Landlord's
covenant of quiet enjoyment hereinafter contained, shall not be deemed to apply
to any such space. The Landlord makes no representation as to the location of
the property line of the building. The Tenant shall reimburse the Landlord for
the vault charge or tax, if any, imposed by the City of New York in respect of
any such vault space.
ARTICLE SIXTEEN
FIRE AND OTHER CASUALTY
(a) If the Premises shall be damaged by fire, action of the elements or
other casualty or cause which is within the risks covered by standard fire and
extended coverage insurance, the Tenant shall give immediate notice thereof to
the Landlord, and said damage shall be repaired by the Landlord, at the
Landlord's expense, with all reasonable speed, making due allowance for delay
due to labor troubles, settlement of loss and other causes beyond the control of
the Landlord, and the
(13)
Tenant shall, in every reasonable way, facilitate the making of such repairs,
and the rent shall be suspended during such period as the Premises shall have
been rendered wholly untenantable until five (5) days after the Landlord
notifies the Tenant that the Premises are substantially ready for the Tenant's
occupancy (or the Premises are sooner occupied by the Tenant) and, in the event
that the Premises are rendered partially untenantable, the rent shall be abated
during such period, in the proportion which the area of the Premises which is
rendered untenantable bears to the area of the whole Premises. In addition to
the foregoing rental abatement, provided that (i) Tenant promptly commences and
diligently prosecutes such alterations to the Premises as are necessary for
Tenant to recommence operations within the Premises, and (ii) Landlord continues
to be reimbursed by Landlord's insurance company for its rental loss, then
Tenant shall be entitled to a further abatement of rent during Tenant's
refixturing of the Premises, which abatement shall be coextensive with the
rental loss reimbursement received by Landlord from Landlord's insurance
company. The decision of Landlord's insurance company shall be conclusive and
Landlord shall have no obligation to contest the same, by litigation or
otherwise. No damage to the Premises or the building by fire, or other cause,
however extensive, shall terminate this lease, or give the Tenant the right to
quit and surrender the Premises, or impair any obligations of the Tenant
hereunder, except with respect to the payment of rent (and with respect thereto
to the extent above provided) and except that (i) if the damage shall be so
extensive that the Landlord shall determine to demolish or substantially alter
the building, whether or not the Premises are affected, the Landlord may at any
time within one hundred twenty (120) days following the occurrence of the damage
give to the Tenant thirty (30) days' notice of intention to terminate this
lease; (ii) if the damage to the Premises is substantial so that the whole or
substantially the whole of the Premises is rendered untenantable by the Tenant
or if 50% or more of the common areas of the building are destroyed or
substantially damaged and the Landlord does not within 60 days following the
occurrence of the damage notify the Tenant of the Landlord's intention to repair
the damage to the Premises so that the Premises are again useable by the Tenant
within a period of not more than 180 days following the occurrence of the damage
subject to delays due to settlement of loss or causes of the kinds described in
Article THIRTY-FOUR of this lease, the Tenant may cancel this lease by notice
given within 10 days following the expiration of the said 60-day period for the
Landlord's notice of election to repair, time being of the essence; (iii) if the
Landlord has given notice of its intention to restore the Premises, but fails to
substantially complete such restoration within 180 days following the occurrence
of the damage, subject to delays due to settlement of loss or delays of the kind
described in Article THIRTY-FOUR of this lease, the Tenant may cancel this lease
by notice given within 10 days following the expiration of the said 180-day
period, time being of the essence; and (iv) in the event of the occurrence of
damage to the Premises of the degree described above in clause (ii) of this
paragraph (a), the Landlord may also elect to terminate this lease by notice of
election to do so given within 60 days following the occurrence of the damage.
If notice of election to terminate this lease shall be given as above provided,
then, upon the date for termination designated in any such notice, this lease
and the term hereby granted shall terminate and the rent shall be apportioned as
of the date of the damage or as of such later date as the Tenant may actually
surrender possession. Nothing herein contained shall be deemed to obligate the
Landlord to restore the Tenant's trade fixtures, equipment, stocks, furnishings,
improvements or other property remaining the property of the Tenant. The Tenant
acknowledges that the Landlord will not carry insurance on the Tenant's
furniture or any fixtures or equipment, improvements or appurtenances removable
by Tenant and agrees that the Landlord will not be obligated to repair any
damage thereto or replace the same. The Tenant hereby waives the provisions of
Section 227 of the Real Property Law and agrees that the provisions of this
Article SIXTEEN shall govern and control in lieu thereof.
(b) The Tenant shall conduct its business and use the Premises in such a
manner and so as not to increase the rate of fire insurance applicable to the
building or any property located therein over the rates in effect prior to the
commencement of the Tenant's occupancy, and the Tenant shall install and
maintain all its furniture, fixtures, equipment, stocks and materials in such a
manner as to accomplish the foregoing purposes. The Tenant further agrees not to
permit any act to be done or anything brought into or kept upon the Premises
which will void or avoid the insurer's liability under any contract of fire
insurance on the building or its contents. Should the fire insurance rate on the
building be increased beyond the present rate, by reason of the Tenant's
occupancy or character of its business, or the Tenant's failure to comply with
the terms hereof, the Tenant agrees to pay to the Landlord, on demand, the
additional cost of such insurance, or, at the option of the Landlord, the same
may be added to any installment of rent and be payable as additional rent. The
(14)
schedule of the makeup of a rate issued by an authorized rating organization
shall be conclusive evidence of the facts therein stated and of the items in the
rate applicable to the Premises.
(c) The Landlord, as to the Premises, and the Tenant, as to the
improvements made therein at the Tenant's expense and all of the Tenant's stock,
trade fixtures and other property in the Premises shall each 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, the Landlord and the Tenant each hereby release one another or
any one claiming through or under each of them by way of subrogation or
otherwise from all liability for any loss or damage caused by fire or any of the
risks enumerated in standard extended coverage insurance. This 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. The Landlord and Tenant agree that their respective
insurance policies will include the aforesaid clause so long as the same is
obtainable without extra cost or if extra cost be charged, so long as the party
for whose benefit the clause is obtained shall pay such extra cost. If extra
cost shall be chargeable therefor the party so affected shall advise the other
thereof, of the amount of the extra cost and the other party at its election may
pay the same or decline to so pay, in which event the release from liability
given to said party by this Article SIXTEEN shall be deemed to be withdrawn and
of no force and effect.
(d) The Landlord shall keep in full force and effect a policy of insurance
against loss or damage by fire and such other risks and hazards as are insurable
under standard forms of "all risk" insurance policies, with extended coverage,
covering the building, in an amount sufficient to avoid the effects of
co-insurance, in such amounts as the Landlord, acting reasonably, may deem
appropriate.
(e) If notwithstanding the recovery of insurance proceeds by the Tenant for
loss, damage or destruction to its property, the Landlord is liable to the
Tenant with respect thereto or is obligated under this lease to repair or
restore such damage to Tenant's property, the amount of the net proceeds paid to
the Tenant shall either be offset against the Landlord's liability to the
Tenant, or shall be made available to the Landlord to pay for the cost of such
repair or restoration.
ARTICLE SEVENTEEN
CHANGE IN USE OF PREMISES, SUBLETTING AND ASSIGNMENT
(a) The use to be made of the Premises by the Tenant and the identity of
the Tenant being among the inducements to the making of this lease by the
Landlord, the Tenant shall not (except as otherwise permitted herein), without
first having obtained the Landlord's prior written consent thereto, and
otherwise in accordance with the terms of this lease, (i) sublet or underlet, or
permit the subletting or underletting of the Premises or any part thereof; (ii)
assign or transfer, by operation of law or transfer of stock or otherwise, this
lease or any interest therein; (iii) use or permit the Premises or any part
thereof to be used for any purposes other than those specified in the lease;
(iv) permit the Premises or any part thereof to be occupied by anyone other than
the Tenant or its officers or employees; or (v) mortgage or encumber this lease
or any interest therein.
(b) If the Tenant shall desire to assign this lease or to sublet the
Premises, in whole or in part, the Tenant shall send to the Landlord a written
notice (the "Tenant's Notice") stating (i) the action which the Tenant proposes;
(ii) the portion of the Premises with respect to which the Tenant proposes to
take such action (the "Affected Premises"); (iii) the principal terms and
conditions of the desired assignment or subletting, including without
limitation, the rent payable, the proposed commencement and expiration dates of
the terms of the desired subletting, or the effective date of the desired
assignment; and (iv) such other information as the Landlord shall reasonably
request. The Tenant's Notice shall also contain a statement directing the
Landlord's attention to the provisions of Article SEVENTEEN (c) of the lease.
(c) Within sixty (60) days after receipt of Tenant's Notice which contains
all the information required in paragraph (b) above, the Landlord shall notify
the Tenant (the "Landlord's Notice")
(15)
whether it elects to (i) terminate the lease in its entirety, if the desired
transaction is an assignment of lease or a subletting of all or substantially
all of the Premises or (ii) terminate the lease as to the Affected Premises only
if the desired transaction is a subletting of less than substantially all of the
Premises. For purposes of this Article SEVENTEEN, a Tenant shall be deemed to be
subletting "substantially all of the Premises" if the Affected Premises
constitutes seventy five (75%) percent or more of the rentable square footage of
the Premises. Landlord's recapture rights specified above shall not apply (y) to
any subletting of five years or less (unless such term exceeds 75% of the
remaining term of this lease), or (z) to any subletting where the subtenant's
space is not separately demised (this does not include sublettings of all or
substantially all of Tenant's space on a given floor), provided in either case
that Tenant is subletting not more than one third of the total rentable area of
the Premises.
(d) If the Landlord exercises the option set forth in paragraph (c) (i)
above to terminate this lease in its entirety, then (i) the term of this lease
shall end and expire with respect to the entire Premises on the ninetieth (90th)
day following the date of Landlord's Notice and (ii) the Tenant shall surrender
the entire Premises to the Landlord on such date, in the same manner and
condition as is required by this lease, as if such date were the Expiration Date
set forth in this lease, and (iii) fixed rent and additional rent shall be
apportioned as of such expiration date. Instead of terminating the lease, the
Landlord may, at its option, elect to have the Tenant assign all of its right,
title and interest in and to this lease to the Landlord, such assignment to be
effective as of the date such lease termination would be effective and otherwise
on the terms and conditions set forth in this paragraph (d). Upon such
assignment, the Tenant shall be relieved of all liability accruing under this
lease after the effective date of such assignment, and the Landlord may
thereafter further assign this lease or sublet all or part of the Premises to
any party and the Tenant shall have no right to any proceeds derived from such
assignment or subletting. In no event shall the provisions of this paragraph (d)
relieve the Tenant of any obligations which accrued prior to the termination of
this lease or the assignment to the Landlord, as the case may be.
(e) If the Landlord exercises the option set forth in paragraph (c)(ii)
above to terminate the lease with respect to the Affected Premises, then (i) the
term of this lease shall end and expire with respect to the Affected Premises on
the ninetieth (90th) day following the date of the Landlord's Notice and (ii)
the Tenant shall surrender the Affected Premises to the Landlord on such date,
in the same manner and condition as is required by this lease, as if such date
were the Expiration Date set forth in this lease and (iii) fixed rent and
additional rent with respect to the Affected Premises shall be apportioned as of
such Expiration Date and the Tenant's prospective rent obligations which are
based on square footage (including, without limitation, fixed rent and
additional rent payable pursuant to Article THIRTY of this lease) shall be
reduced accordingly, and (iv) at the Landlord's election, either the Landlord,
at the Tenant's expense, or the Tenant, at its own expense, shall erect the
partitioning required to separate the Affected Premises from the remainder of
the Premises, create any doors required to provide an independent means of
access to the Affected Premises from elevators and lavatories and segregate the
wiring and meters and electric current facilities, so that the Affected Premises
may be used as a unit for commercial purposes, separate from the remainder of
the Premises. If the remaining Premises contain the core lavatories, the
occupant of the Affected Premises shall have the right to use such lavatories in
common with the Tenant. If the Tenant performs such work, it shall commence such
work promptly upon receipt of Landlord's Notice and shall proceed to complete
such work in a diligent and workmanlike manner. Instead of terminating the lease
with respect to the Affected Premises, the Landlord may, at its option, elect to
have the Tenant assign all of its right, title and interest with respect to the
Affected Premises to the Landlord, such assignment to be effective as of the
date such lease termination would be effective and otherwise on the terms and
conditions set forth in this paragraph (e). Upon the assignment of the lease to
the Landlord with respect to the Affected Premises, the Landlord may further
assign the lease or sublet all or part of the Affected Premises to any party and
the Tenant shall have no right to any proceeds derived from such assignment or
subletting. In no event shall the provisions of this paragraph (e) relieve the
Tenant of any obligations with respect to the Affected Premises which accrued
with respect to the Affected Premises prior to the termination of the lease or
the assignment to the Landlord, as the case may be.
(f) In the event the Landlord does not elect either of the alternatives set
forth in paragraph (c) (i) or (ii) above, or in the event the Landlord fails to
timely deliver the Landlord's Notice, the
(16)
Landlord agrees not to unreasonably withhold or delay its consent to any
proposed assignment or subletting, provided, however, that (i) the Landlord may
withhold its consent to a subletting of the Ground Floor Space for any or no
reason, and (ii) the Landlord shall have the right to condition its consent to
any proposed assignment or sublease on the following:
(1) No Event of Default shall have theretofore occurred and be continuing
under this lease beyond any applicable notice or cure period.
(2) The Tenant shall have delivered to the Landlord the Tenant's Notice as
required by paragraph (b) above.
(3) With respect to a sublease, the Tenant shall collaterally assign to
the Landlord, and grant the Landlord a security interest in, the sublease
and the rents payable thereunder and shall take all necessary steps
required to perfect such assignment and security interest.
(4) The sublease shall include provisions to the effect that (i) if the
Landlord shall notify the sublessee that the Tenant is in default in the
payment of rent or in the performance of its other obligations under this
lease, the subtenant shall, if so requested by the Landlord, pay all rent
and other amounts due under the sublease directly to the Landlord, (ii)
notwithstanding any such payment by the subtenant directly to the Landlord,
the term of the sublease shall terminate simultaneously with the
termination of the term of this lease and the subtenant shall surrender the
subleased premises upon such termination, (iii) the sublease shall be
subject and subordinate to this lease and to all matters to which this
lease is or shall be subordinate, and (iv) any act or omission by the
subtenant which, if performed by the Tenant would constitute an Event of
Default under the lease, shall also constitute an Event of Default under
the sublease provided notice thereof shall have been provided to the Tenant
named herein.
(5) The proposed subtenant or assignee shall have a financial standing, be
of a character, be engaged in a business, and propose to use the Premises
in a manner, which in the Landlord's reasonable judgment, is in keeping
with the Landlord's standards in such respect of the other office tenancies
in the building. The parties acknowledge that the Landlord, as a religious
institution, may have special considerations in determining if the business
or proposed use of a proposed subtenant or assignee is objectionable, and
the parties agree that the Landlord's judgment in such matters shall be
conclusive.
(6) The proposed assignee or subtenant shall not then be a tenant,
subtenant or assignee of any space in the building or any other building
then owned, directly or indirectly, by the Landlord, provided that Landlord
then has comparable space available in any of its buildings, nor shall the
proposed subtenant or assignee be a person or entity with whom the Landlord
is then negotiating to lease space in the building or any other building
then owned, directly or indirectly, by the Landlord.
(7) The Premises shall not, without the Landlord's prior consent, have
been publicly advertised (but may be listed with brokers) for subletting at
a rental rate less than the prevailing asking rental rate then set by the
Landlord for comparable space in the building, and if no comparable space
is then available, at the prevailing rental rate set by the Landlord.
(8) The character of the business to be conducted or the proposed use of
the Premises by the proposed assignee or subtenant shall not (i) be likely
to increase the Landlord's operating expenses beyond that which would be
incurred for use by the Tenant or for use in accordance with the standards
of use of other tenancies in the building, (ii) materially increase the
burden on elevators over the burden prior to such proposed assignment or
subletting, (iii) unreasonably interfere with the use and enjoyment by
other tenants in the building of their premises, or (iv) violate or be
(17)
likely to violate any provisions or restrictions contained herein relating
to the use or occupancy of the Premises.
(9) Any proposed sublease shall provide that in the event of the
termination of this lease, or the re-entry or dispossession of the Tenant
by the Landlord under this lease, such subtenant shall, at the Landlord's
option, attorn to the Landlord as its sublessor pursuant to the then
applicable terms of such sublease for the remaining term thereof, except
that the Landlord shall not be (i) liable for any previous act or omission
of Tenant as sublessor under such sublease, (ii) subject to any offset
which theretofore accrued to such subtenant against the Tenant, (iii) bound
by any modification of such sublease not consented to in writing by the
Landlord or by any prepayment of rent more than one month in advance, (iv)
bound to return such subtenant's security deposit until it has come into
its actual possession and the subtenant would be entitled to its return
pursuant to the terms of the sublease, and (v) bound by any obligation to
make any payment to any subtenant or perform any work in the Premises.
(10) The proposed assignee or subtenant is not entitled, directly or
indirectly, to diplomatic or sovereign immunity, and/or is subject to the
service or process in, and the jurisdiction of the courts of New York.
(11) At any time during the term of the lease, there shall be no more than
three (3) occupants in the Premises on any floor where Tenant has leased
half or more than half of the rentable area of such floor, or two (2)
occupants in the Premises on any floor where Tenant has leased less than
half the rentable area of such floor, in both such cases, "occupants"
includes Tenant if Tenant is actually occupying any portion of such floor.
(12) The subletting shall end no later than one (1) day before the
Expiration Date and shall be for a term of no less than two (2) years,
unless it commences less than two (2) years before the Expiration Date of
the term.
(13) Intentionally omitted.
(14) The assignee shall assume, in writing, all obligations of the Tenant
under this lease from and after the date of such assignment.
(15) A fully executed counterpart of the assignment or sublease shall be
delivered to the Landlord within five (5) days after execution thereof.
(g) In the event the Landlord waives its rights set forth in paragraph (c)
(i) and (ii) above, or consents to any assignment or subletting pursuant to this
Article SEVENTEEN, and the Tenant fails to execute and deliver an assignment or
sublease document, as approved by the Landlord, within six (6) months after the
date of Landlord's Notice, then the Tenant shall again comply with all of the
requirements of this Article SEVENTEEN before assigning its interest in this
lease, or subletting all or part of the Premises, respectively.
(h) The Tenant shall pay all of the reasonable Landlord's costs (including,
without limitation, attorneys' fees and expenses) related to the Landlord's
review of a proposed sublease or assignment and the preparation, review and
approval of any assignment of rents, financing statement and other documents
related to such sublease or assignment, irrespective of whether consent is
granted or the transaction is ultimately consummated. The Tenant shall also pay
the cost of recording or filing any assignment of rents and financing
statements.
(i) Provided no Event of Default shall have theretofore occurred and be
continuing under this lease beyond any applicable notice or cure period, the
Tenant named herein is authorized to (1) assign the lease to any entity
succeeding to the business and assets of the Tenant, whether by way of merger or
consolidation or by way of acquisition of all or substantially all of the assets
of the Tenant, provided that the acquiring entity shall have assumed in writing
the Tenant's obligations
(18)
under this lease; or (2) to sublease all or a portion of the Premises or assign
the lease to an entity which shall (x) control, (y) be under the control of, or
(z) be under common control with the Tenant (an entity described in (x), (y) or
(z) being a "Related Entity"). "Control" shall mean direct or indirect ownership
of more than fifty percent (50%) of each class of stock which is authorized to
vote of a corporation or other majority equity and control interest if not a
corporation, or the possession, directly or indirectly, of power to direct or
cause the direction of the management and policy of such corporation or other
entity, whether through the ownership of voting securities, by statute or
according to the provisions of a contract. Upon making a sublease or assignment
to any Related Entity, the Tenant shall notify the Landlord and certify to the
Landlord the manner in which such Related Entity is related to the Tenant and
the purposes for which the Premises will be used. Any subletting or assignment
described in this paragraph (i) shall be on notice to Landlord but shall not
require the prior written consent of the Landlord and may only be made on the
condition that (a) the subtenant or assignee shall continue to use the Premises
for the uses permitted herein, and (ii) the principal purpose of such sublease
or assignment is not the acquisition of the Tenant's interest in this lease, or
to circumvent the provisions of paragraph (a) of this Article SEVENTEEN. In the
event of an assignment pursuant to the provisions of clause (1) of this
paragraph (i), the successor entity, after giving effect to such merger,
consolidation or acquisition, shall have a tangible net worth, exclusive of good
will, computed in accordance with generally accepted accounting principles ("Net
Worth") at least equal to the Net Worth of the Tenant as of the date of this
lease. The provisions of paragraph (c) of this Article and the provisions of
paragraph (k) of this Article shall not apply to a subleasing or assignment made
pursuant to the provisions of this paragraph (i).
(j) For purposes of this Article SEVENTEEN, an "assignment" shall be deemed
to include, whether occurring at one time or over a period of time through a
series of transfers, a sale or transfer of fifty (50%) percent or more of
beneficial interest in the Tenant (whether stock, partnership or otherwise), or
of any guarantor of the Tenant's obligations under this lease, or the issuance
of additional stock where the issuance of such additional stock will result in a
change of "control" (as defined in paragraph (i)) in the Tenant or guarantor, if
applicable. The transfer of shares or issuance of additional stock of the Tenant
or any guarantor for purposes of this Article SEVENTEEN shall not include the
sale of shares by persons other than those deemed "insiders" within the meaning
of the Securities and Exchange Act of 1934, as amended, which sale is effected
through the "over-the-counter market" or through any nationally recognized
exchange.
(k) In the event the Landlord, in its sole discretion, authorizes the
Tenant to assign the lease or to sublet all or a portion of the Premises (other
than an assignment or subleasing authorized by paragraph (i) above), the Tenant
named herein shall pay to the Landlord, monthly, as additional rent, 50% of all
Tenant's Profit. "Tenant's Profit" shall mean all consideration received by the
Tenant (other than rental or consideration received by the Tenant under a
sublease or assignment entered into pursuant to paragraph (i) of this Article),
less (i) the rent, payable by the Tenant under this lease for the period in
question (exclusive of any amount payable by the Tenant under this subparagraph
(k)), such rent to be pro-rated if less than all of the Premises are sublet,
(ii) any brokerage commissions (not exceeding 110% of those set forth in
Landlord's brokerage commission schedule as published from time to time) and
reasonable legal fees paid by the Tenant in connection with such subletting or
assignment, (iii) any sums payable by the Tenant to the Landlord pursuant to the
provisions of paragraph (h) of this Article, (iv) any payments made by the
Tenant in connection with the assignment of its interest in this lease pursuant
to Article 31-B of the Tax Law of the State of New York or any real property
transfer tax of the United States or the City or State of New York (other than
income taxes), (v) free rent granted to the assignee or subtenant, and (vi) the
cost of work or alterations or payment therefor to separate the subleased space
from the balance of the Premises or to prepare the Affected Premises for the
assignee's or subtenant's occupancy. In the case of a sublease, the expenses set
forth in (ii) and (iii) shall be amortized on a straight-line basis over the
term of the sublease. In the case of an assignment, if the consideration to be
paid to the Tenant shall be paid in installments, the expenses set forth in (ii)
through (iv) shall be amortized over the period during which the installments
are to be paid.
(l) No consent given by the Landlord shall be deemed to permit any act
except the act to which it specifically refers, or to render unnecessary any
subsequent consent, and any assignment or subletting of the Premises shall not
relieve the Tenant or any mesne assignee from any obligations, duty or covenant
under this lease. No assignment, transfer, mortgage, encumbrance,
(19)
subletting or arrangement in respect of the occupancy of the Premises shall
create any right in the assignee, transferee, mortgagee, subtenant or occupant,
unless the consent of the Landlord shall first have been obtained, in accordance
with the provisions of this Article SEVENTEEN (except as provided in paragraph
(i) above). Any assignee by accepting an assignment shall nevertheless be
conclusively deemed to have assumed this lease and all obligations already
accrued or to accrue thereunder and further to have agreed to fully and duly
perform all the Tenant's covenants herein contained. If the Tenant shall, at any
time, be in default in the payment of rent, the Landlord shall have the right to
collect rent from any assignee or subtenant, and credit the same to the account
of the Tenant, and no such collection shall constitute a waiver of the foregoing
covenant or the acceptance of anyone other than the Tenant, as tenant, or shall
otherwise release, impair or otherwise affect any obligation of the Tenant under
this lease.
(m) The Tenant shall remain fully liable for the performance of all of the
Tenant's obligations hereunder notwithstanding anything provided for herein, and
without limiting the generality of the foregoing, shall remain fully responsible
and liable to the Landlord for all acts and omissions of any subtenant or
assignee or anyone claiming under or through any such person which shall be in
violation of any of the obligations of this lease and any such violation shall
be deemed to be a violation by the Tenant. Provided that the Tenant named herein
shall have provided Landlord with an address for notices, if such address is
different from the Premises, Landlord shall send copies of any default notices
given to an assignee or subtenant to the Tenant named herein, and the Tenant
named herein shall have the same cure period with respect to such default as
provided herein with respect to Tenant's own defaults. Landlord may not
terminate this lease for a default of an assignee or subtenant until the Tenant
named herein is given copies of such default notices and the cure period to cure
such default shall have expired. Upon any termination of this lease, it is
expressly agreed that the Tenant shall deliver to the Landlord all subleases,
security deposits (including interest), contracts, documents, rent rolls and
other records used in the operation of the Premises and, unless the sublease
shall have previously terminated and the security deposit returned to subtenant
or applied as provided by the sublease, all security deposits held by the
Tenant.
(n) With respect to any present or future subleases, the Tenant shall not
accept prepayment of rent prior to its due date in excess of one month (but the
provisions of the foregoing shall not prohibit the Tenant from collecting from
any subtenant a security deposit provided such security deposit is delineated in
the sublease as being not advance rent, but security, returnable to the
subtenant after the termination of the term of the sublease). The Tenant agrees
to indemnify and save the Landlord harmless from and against any claim or lien
against the Landlord or the Premises for the return of any security under any
subleases with a subtenant which was not previously delivered to the Landlord
and agrees further that all subleases hereafter made with subtenants shall
provide that the lease security deposited by the subtenant shall not be a lien
or claim against the interest of the Landlord.
(o) (i) If the Tenant assumes this lease and proposes to assign the same
pursuant to the provisions of 11 U.S.C. Section 101 et. seq (the "Bankruptcy
Code") to any person or entity who shall have made a bona fide offer to accept
an assignment of this lease on terms acceptable to the Tenant, then notice of
such proposed assignment shall be given to the Landlord by the Tenant no later
than twenty (20) days after receipt by the Tenant of such bona fide offer, but
in any event no later than ten (10) days prior to the date that the Tenant shall
make application to a court of competent jurisdiction for authority and approval
to enter into such assignment and assumption. Such notice shall set forth (x)
the name and address of such person, (y) all of the terms and conditions of such
offer, and (z) adequate assurance of future performance by such person under
this lease, including, without limitation, the assurance referred to in Section
365 (b)(3) of the Bankruptcy Code. The Landlord shall have the prior right and
option, to be exercised by notice to the Tenant given at any time prior to the
effective date of such proposed assignment, to accept an assignment of this
lease upon the same terms and conditions and for the same consideration, if any,
as the bona fide offer made by such person, less any brokerage commission which
would be payable in connection with such assignment.
(ii) The term "adequate assurance of future performance" as used in this
lease shall mean that any proposed assignee shall, among other things: (a)
deposit with the Landlord on the assumption of this lease an amount equal to the
then-fixed rent and additional rent as security for
(20)
the faithful performance and observance by such assignee of the terms and
obligations of this lease, which sum shall be held in accordance with the
provisions of Article TWENTY-NINE hereof; (b) furnish the Landlord with
financial statements of such assignee for the prior three (3) fiscal years, as
finally determined after an audit and certified as correct by a certified public
accountant, which financial statements shall show a Net Worth of at least two
(2) times the Net Worth of the Tenant named herein as of the date of this lease
for each of such three (3) years; (c) grant to the Landlord a security interest
in such property of the proposed assignee as the Landlord shall deem necessary
to secure such assignee's future performance under this lease; and (d) provide
such other information or take such action as the Landlord, in its reasonable
judgment, shall determine is necessary to provide adequate assurance of the
performance by such assignee of its obligations under this lease.
(p) Notwithstanding anything to the contrary contained herein, no
assignment or subletting by the Tenant, nor any other transfer or vesting of the
Tenant's interest hereunder (whether by merger, operation of law or otherwise),
shall be permitted if the proposed assignment or sublease (i) provides for a
rental or other payment for the leasing, use, occupancy or utilization of all or
any part of the Premises based, in whole or in part, on the income or profits
derived by any person from the property so leased, used, occupied or utilized
other than an amount based on a fixed percentage or percentages of gross
receipts or sales or (ii) does not provide that such assignee or subtenant shall
not enter into any lease, sublease, license, concession or other agreement for
the use, occupancy or utilization of all or any portion of the Premises which
provides for a rental or other payment for such use, occupancy or utilization
based, in whole or in part, on the income or profits derived by any person from
the property so leased, used, occupied or utilized other than an amount based on
a fixed percentage or percentages of gross receipts or sales.
ARTICLE EIGHTEEN
WAIVER AND SURRENDER; REMEDIES CUMULATIVE
No consent or waiver of any provision hereof or acceptance of any surrender
shall be implied from any act or forbearance by the Landlord. No agreement
purporting to accept a surrender of this lease, or to modify, alter, amend or
waive any term or provision thereof, shall have any effect or validity whatever,
unless the same shall be in writing, and executed by the Landlord and by the
Tenant (or, in the case of a waiver, by the party waiving such term or
provision), and be duly delivered, nor shall the delivery of any keys to anyone
have any legal effect, any rule or provision of law to the contrary
notwithstanding. Any consent, waiver or acceptance of surrender, in writing, and
properly executed and delivered as aforesaid, shall be limited to the special
instance for which it is given, and no superintendent or employee, other than an
officer of the Landlord or of its managing agent, and no renting representative
shall have any authority to accept a surrender of the Premises, or to make any
agreement or modification of this lease, or any of the terms and provisions
hereof. No provision of any lease made by the Landlord to any other tenant of
the building shall be taken into consideration in any manner whatever in
determining the rights of the Tenant herein. No payment by the Tenant or receipt
by the Landlord of a lesser amount than the monthly rent herein stipulated shall
be deemed to be other than on account of the stipulated rent, nor shall any
endorsement on any check, nor any letter accompanying any such payment of rent
be deemed an accord and satisfaction (unless an agreement to accept a lesser
amount be signed by the Landlord), but the Landlord may accept such payment
without prejudice to the Landlord's full right to recover the balance of such
rent and to institute summary proceedings therefor. If the Tenant is in arrears
in the payment of fixed rent or additional rent or any other sum which may
become payable under this lease, the Tenant waives its right, if any, to
designate the items in arrears against which any payments made by Tenant are to
be credited and Landlord may apply any of such payments to any such items in
arrears as the Landlord, in its sole discretion, shall determine, irrespective
of any such designation or request by the Tenant as to the items against which
any such payments shall be credited. The receipt by the Landlord of any fixed
rent, or additional rent or of any other sum of money which may be payable under
this lease, or of any portion thereof, shall not be deemed a waiver of the right
of the Landlord to enforce the payment of any sum of any kind previously due or
which may thereafter become due under this lease, or of the right to forfeit
this lease by such remedies as may be appropriate, or to terminate this lease or
to exercise any of the rights and remedies reserved to the Landlord hereunder,
and the failure of the Landlord to enforce any covenant or condition (although
the Tenant shall have repeatedly or continuously broken the same
(21)
without objection from the Landlord) shall not estop the Landlord at any time
from taking any action with respect to such breach which may be authorized by
this lease, or by law, or from enforcing said covenant or any other covenant or
condition on the occasion of any subsequent breach or default. The various
rights, remedies, powers and elections of the Landlord, as provided in this
lease or created by law, are cumulative, and none of them shall be deemed to be
exclusive of the others, or of such other rights, remedies, powers or elections
as are now or may hereafter be conferred upon the Landlord by law or equity.
ARTICLE NINETEEN
NO REPRESENTATIONS AS TO PREMISES,
CERTIFICATE OF OCCUPANCY AND USE
The Tenant represents to the Landlord that the Tenant has made, or caused
to be made, a careful inspection of the Premises and that the Tenant has made an
examination of the certificate of occupancy of the building and that the area
and present condition of the Premises are in all respects satisfactory to the
Tenant, except (if at all) as may herein otherwise be expressly stated in the
Work Sheet (Exhibit C) annexed hereto, and that the Tenant has determined that
the use of the Premises, as set forth in this lease, is consistent with the uses
permitted under the Certificate of Occupancy, if any. The Tenant acknowledges
that no representations or promises have been made by the Landlord or the
Landlord's agents with respect to the Premises or the building or the
Certificate of Occupancy thereof, except as in this lease set forth, and no
rights, easements or licenses are acquired by the Tenant except as expressly set
forth herein. The statements contained in this lease regarding the use of the
Premises by the Tenant shall not be deemed a representation or warranty by the
Landlord that such use is lawful or permitted by the Certificate of Occupancy of
the building.
ARTICLE TWENTY
LIMITATION OF LANDLORD'S LIABILITY
(a) The Tenant shall make no claim upon the Landlord for abatement of rent,
constructive eviction, rescission, or otherwise, and the Landlord shall be
exempt from all liability, except for injuries to the Tenant's person or
property which are due to the negligence of the Landlord, its agents, servants
or employees in the management of the Premises or the real property of which the
Premises are a part, for or on account of any annoyance, inconvenience,
interference with business, or other damage, caused by: (i) any interruption,
malfunction or curtailment of the operation of the elevator service, heating
plant, sprinkler system, gas, water, sewer or steam supply, plumbing, machinery,
electric equipment or other appurtenances, facilities, equipment and
conveniences in the building, whether such interruption, malfunction or
curtailment be due to breakdowns, or repairs, or strikes or inability to obtain
electricity, fuel or water due to any such cause or any other cause beyond the
Landlord's control; (ii) any work of repair, alteration, renovation or
replacement done by or on behalf of the Landlord or any other tenant; (iii) any
water, rain, snow, steam, gas, electricity or other element, which may enter,
flow from or into the Premises or any part of the building, or any noise or
vibration audible in, or transmitted to the Premises; (iv) any vermin; (v) any
falling paint, plaster or cement; (vi) any interference with light or with other
easements or incorporeal hereditaments; (vii) any latent defect or deterioration
in the building or the appurtenances thereof, whether or not the Landlord shall
have been notified of any condition allegedly causing same; (viii) any zoning
ordinance or other acts of governmental or public authority now or hereafter in
force; and (ix) any act or omission of any other occupant of the building or
other person temporarily therein. The Tenant will not hold the Landlord liable
for any loss or theft of, or damage to, any property in the Premises done or
caused by any employee, servant, or agent of the Landlord who is invited into
the Premises by the Tenant for purposes outside the normal scope of such
employee's, servant's or agent's duties, nor for the loss, damage or theft of
any property stored or left in the basement or in any other part of the
building, which is not enclosed within the Premises or of any property, left
with any employee of the Landlord, notwithstanding such theft, loss or damage
may occur through carelessness or negligence of the Landlord's employees; and
the Tenant agrees that any employee in entering the Premises at the invitation
of the Tenant for purposes outside the normal scope of such employee's,
servant's or agent's duties or accepting custody of property shall be then
deemed agent of the Tenant or other person at whose instance he may be acting,
and not
(22)
agent of the Landlord. Employees are not permitted to receive or accept packages
or property for account of Tenants. The use of storerooms or storage space for
personal property (if provided) shall be at the Tenant's risk and the Tenant
will not hold the Landlord liable for any loss of or damage to person or
property therein or thereby. Nothing in this lease contained shall impose any
obligation upon the Landlord with respect to any real property other than the
building, whether said other real property be owned by the Landlord or
otherwise, or shall in any way limit the Landlord's right to build upon or
otherwise use said other real property in such manner as the Landlord may see
fit. The Tenant shall make no claim upon the Landlord for abatement of rent,
constructive eviction or rescission, and the Landlord shall have no liability by
reason of the Landlord's failure to enforce the provisions of the lease to any
other tenant against such other tenant.
(b) Any right and authority reserved by and granted to the Landlord under
this lease, to enter upon and make repairs in the Premises shall not be taken as
obligating the Landlord to inspect and to repair the Premises and the Landlord
hereby assumes no responsibility or liability for the care, inspection,
maintenance, supervision, alteration or repair of the Premises except as herein
specifically provided. The Tenant assumes possession and control of the Premises
and exclusively the whole duty of care and repair thereof, except as herein
specifically provided, and the duty of care, if any, owed by the Tenant to the
persons on the sidewalks or in the corridors of the building.
(c) The officers, directors, employees, partners, shareholders, and
principals, direct or indirect, comprising the Landlord (collectively, the
"Parties") shall not be liable for the performance of the Landlord's obligations
under this lease. The Tenant shall look solely to the Landlord to enforce the
Landlord's obligations under this lease and shall not seek any damages against
any of the Parties. The liability of the Landlord for the Landlord's obligations
under this lease shall be limited to Landlord's Equity in the building.
"Landlord's Equity" as used herein means the lesser of (i) the interest of the
Landlord in and to the building and (ii) the interest the Landlord would have in
the building if it were encumbered by an indebtedness held by a person not a
party to this lease in an amount equal to 75% of the then-current fair market
value of the building (as such value of such interest is determined in good
faith by the Landlord). The Tenant shall not look to any other property or
assets of the Landlord, other than Landlord's Equity, or the property or assets
of any of the Parties in seeking either to enforce the Landlord's obligations
under this lease or to satisfy a judgment for the Landlord's failure to perform
such obligations.
(d) The term "Landlord" as used in this lease, means only the owner for the
time being of the Premises. If the Landlord shall hereafter sell, exchange or
lease the entire building or the land and building wherein the Premises are
located, or, being the lessee thereof, shall assign its lease, the grantee,
lessee, or assignee thereof, as the case may be, shall, without further
agreement by any party, be conclusively deemed to be the Landlord of this lease
and to have assumed and undertaken to carry out all of the obligations hereof on
the part of the Landlord to be performed, and the Tenant does hereby release the
above-named Landlord from any claim or liability arising or accruing hereunder
subsequent to such transfer of ownership or possession, for breach of the
covenant of quiet enjoyment, or otherwise.
(e) If the lease provides that the Landlord's consent is not to be
unreasonably withheld or delayed, and it is the final order of any court having
jurisdiction thereof that the Landlord has been unreasonable, the only effect
shall be that the Landlord shall be deemed to have given such consent; but in no
event shall the Landlord be liable to the Tenant for any monetary damages by
reason of the withholding or delaying of its consent.
ARTICLE TWENTY-ONE
INDEMNITY BY TENANT
The Tenant hereby indemnifies and agrees forever to save harmless the
Landlord against any and all liabilities, penalties, claims, damages, expenses
(including, without limitation, attorneys' fees whether in a proceeding between
the Landlord and the Tenant or between the Landlord and any third party) or
judgments, arising from injury to person or property of any kind, occasioned
wholly or in part by the Tenant's failure to perform or abide by any of the
covenants of this lease or occasioned wholly or in part by any act or acts,
omission or omissions of the Tenant, or of the employees, customers, agents,
assigns, invitees or licensees or under-tenants of the Tenant, or based on any
(23)
matter or thing growing out of the Tenant's use or occupation of the Premises or
any part of the building. The Tenant shall not do or permit any act or thing to
be done upon the Premises which may subject the Landlord to any liability or
responsibility for injury, damages to persons or property or to any liability by
reason of any violations of any requirements of law with which the Tenant is
obligated to comply under this lease, and the Tenant shall exercise such control
over the Premises as to protect the Landlord against any such liability. In case
any claim, action or proceeding is made or brought against the Landlord by
reason of any such claim, the Tenant, upon written notice from the Landlord,
shall, at the Tenant's sole cost and expense, resist or defend such action or
proceeding by counsel approved by the Landlord in writing. The Landlord agrees
that counsel for the Tenant's insurance carrier shall be deemed satisfactory. If
the damages sought by the party asserting such claim exceed the limits of the
Tenant's insurance coverage, the Landlord shall be entitled to have its own
counsel participate with the Tenant's counsel in resisting or defending such
action and the Tenant shall reimburse the Landlord for any reasonable cost it
incurs in connection therewith. The provisions of this Article TWENTY-ONE shall
survive the expiration or sooner termination of this Lease.
ARTICLE TWENTY-TWO
NOTICES
Any notice which is to be given by either party to the other pursuant to
this lease shall be in writing and shall be given as follows: (a) if such notice
is to be given by the Landlord to the Tenant, such notice may be given
personally by delivering the same to the Tenant, or if the Tenant be a
corporation or partnership, to any officer, partner or other employee of the
Tenant, at the Premises or at any other place, or by registered or certified
mail, postage prepaid, return receipt requested, or by nationally recognized
overnight service providing evidence of delivery, addressed to the Tenant at its
address given in this lease or at the Premises, or such other address as the
Tenant shall hereafter designate in writing, provided, however, that notices of
default may not be given solely by personal delivery, but shall be given by mail
or overnight service as set forth above, with a copy of such default notice sent
to ▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇, Esq., Stadtmauer Bailkin LLP, ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇,
▇▇ ▇▇▇▇▇; (b) if such notice is to be given by the Tenant to the Landlord, such
notice shall be given by registered or certified mail, postage prepaid, return
receipt requested, or by nationally recognized overnight service providing
evidence of delivery, addressed to the Landlord at ▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇,
▇▇▇ ▇▇▇▇, ▇▇▇▇▇, Attention: Director of Commercial Real Estate Leasing, or at
such other address as the Landlord shall hereafter designate in writing. Notices
given by overnight service shall be specified for next business day delivery.
Any notice shall be deemed to have been given on the date when same shall have
been delivered, in the case of personal delivery, or two days after the same
shall have been properly mailed in the case of certified or registered mail, or
on the first following business day if sent by overnight mail service. The
attorneys for either party shall have the right, but not the obligation, to send
notices on behalf of their respective clients. Notwithstanding the foregoing,
all bills may be sent directly to the Tenant by regular mail.
ARTICLE TWENTY-THREE
INSOLVENCY
(a) Each of the following shall be a "Bankruptcy Event" hereunder:
(1) if the Tenant shall generally not, or shall be unable to, or shall
admit its inability to, pay its debts as they become due; or
(2) if the Tenant shall make a general assignment for the benefit of
creditors; or
(3) if the Tenant shall commence or institute any case, proceeding or other
action (i) seeking relief on its behalf as debtor, or to adjudicate it a
bankrupt or insolvent, or seeking reorganization, arrangement, adjustment,
winding-up, liquidation, dissolution, composition or other relief with
respect to it or its debts under any existing or future law of any
jurisdiction, domestic or foreign, relating to bankruptcy, insolvency,
reorganization or relief of debtors, or (ii) seeking appointment of a
receiver, trustee, custodian or other similar official for it or for all or
any substantial part of its property; or
(24)
(4) if any case, proceeding or other action shall be commenced against or
instituted against the Tenant (i) seeking an order for relief entered
against the debtor or to adjudicate it a bankrupt or insolvent, or seeking
reorganization, arrangement, adjustment, winding-up, liquidation,
dissolution, composition or other relief with respect to its debts under
any existing or future law of any jurisdiction, domestic or foreign,
relating to bankruptcy, insolvency, reorganization or relief of debtors, or
(ii) seeking appointment of a receiver, trustee, custodian or other similar
official for it or for all or any substantial part of its property, which
in either case (x) results in the entry of any order for relief,
adjudication of bankruptcy or insolvency, or such an appointment or the
issuance or entry of any other order having a similar effect or (y) remains
undismissed for a period of sixty (60) days; or
(5) if any case, proceeding or other action shall be commenced or
instituted against the Tenant seeking issuance of a warrant of attachment,
execution, distraint or similar process against all or any substantial part
of the Tenant's property which results in the entry of an order for such
relief which is not vacated, discharged, or stayed or bonded pending appeal
within sixty (60) days from the entry thereof; or
(6) if the Tenant shall take shall take any action in furtherance of, or
indicating its consent to, approval of, or acquiescence in, any of the acts
set forth in any of clauses (2) through (5) above; or
(7) if a trustee, receiver or other custodian is appointed for any
substantial part of the assets of the Tenant and such appointment is not
vacated or stayed within seven days.
(b) If at any time (i) the Tenant shall be comprised of two or more people;
or (ii) the Tenant's obligations under this lease have been guaranteed by any
party other than the Tenant, or (iii) the Tenant's interest in this lease has
been assigned, the word "Tenant" as used in this Article TWENTY-THREE shall be
deemed to mean any one or more of the persons primarily or secondarily liable
for the Tenant's obligations under this lease. Any moneys received by the
Landlord from or on behalf of the Tenant during the pendency of any Bankruptcy
Event shall be deemed paid as compensation for the use and occupation of the
Premises and the acceptance of any such compensation by the Landlord shall not
be deemed an acceptance of rent or a waiver by the Landlord of any rights under
Articles TWENTY-THREE or TWENTY-FIVE.
(c) If a Bankruptcy Event occurs at any time after the execution and
delivery of this lease, whether such event occurs prior or subsequent to the
Commencement Date or the Tenant's entry into possession, such an event shall be
deemed an Event of Default and the Landlord shall have the right to terminate
this lease in the manner hereinafter provided. In the event of such termination,
the Tenant or any person claiming under, by or through the Tenant, by virtue of
any statute or of an order of any court, shall not be entitled to possession or
to remain in possession of the Premises but shall forthwith quit and surrender
same. Exclusive of and in addition to any other rights or remedies the Landlord
may have through any other portion or provision of this lease or by virtue of
any rule of law or statute, said Landlord may keep and retain, as damages, any
rent, security, deposit or other moneys or consideration received by the
Landlord from the Tenant, or others on behalf of the Tenant. Also, in the event
of termination of this lease as aforesaid, the Landlord shall be entitled, as
and for liquidated damages, and not as a penalty, from the Tenant for breach of
the unexpired term of this lease, to a sum equal to the amount by which the rent
for the period of the unexpired portion of the lease term exceeds the then fair
and reasonable rental value for the same period, both discounted to present
value at six percent (6%). If at any time within a reasonable period following
the date of the termination of the lease, as aforesaid, the Premises should be
re-rented by the Landlord, the rent realized by any re-letting shall be deemed
prima facie to be the rental value. In the event of the occurrence of any
Bankruptcy Event occasioned solely through the invocation by the Tenant or by
third parties of the laws of the State of New York, judicial or statutory, as
distinguished from the invocation of Federal laws relating to bankruptcy,
reorganization, or otherwise, the Landlord, in addition to the foregoing, may
accelerate the full amount of rent reserved for the remainder of the lease,
discounted to present value at 6%, and the same shall forthwith become due and
payable to the Landlord. Nothing herein provided shall be deemed to prevent or
restrict the Landlord from proving and receiving as damages herein the maximum
permitted by any
(25)
rule of law or statute prevailing when such damages are to be proved, whether
they be greater or less than those referred to above.
ARTICLE TWENTY-FOUR
REMEDIES OF THE LANDLORD
ON DEFAULT IN PERFORMANCE BY THE TENANT
(a) If the Tenant shall default in the full and due performance of any
covenant of this lease, the Landlord shall have the right, upon ten (10) days'
notice to the Tenant (except in an emergency or unless a shorter period of
notice or provision for the performance of such work without notice is elsewhere
established), to perform the same for the account of the Tenant, and in such
event all ▇▇▇▇▇▇▇ employed by the Landlord shall be deemed the agents of the
Tenant, and any reasonable payment made, and expense incurred, by the Landlord
in this connection, shall become due and payable by the Tenant to the Landlord
within fifteen (15) days after receipt of invoices for same. If the Landlord is
compelled to incur any expenses or incur any obligation for the payment of
money, including, without limitation, reasonable attorneys' fees in instituting,
prosecuting or defending any action or proceeding instituted by the Tenant or
any third party by reason of any Event of Default hereunder, the sum or sums so
paid by the Landlord with all interest, costs and damages, shall be deemed
immediately due to the Landlord upon demand as additional rent. Any and all sums
payable by the Tenant to the Landlord shall bear interest at the lesser of (x)
one and one-half per cent (1 1/2%) per month or (y) the maximum rate permitted
by applicable law from the due date to the date of actual payment, and any and
all such sums (except the fixed rent hereinabove expressly reserved) shall be
deemed to be additional rent for the period prior to such due date, and the
Landlord shall have the same remedies for default in the payment of such
additional rent as for default in the payment of the rent expressly reserved. If
the Tenant's term shall have expired at the time of the making of such
expenditures or incurring such obligations, such sums shall be recoverable by
the Landlord as damages.
(b) In the event that under the provisions of this lease the Landlord shall
have the privilege of performing any covenant in respect of which the Tenant may
be in default and of recovering the expenses so involved from the Tenant as
additional rent or otherwise, such remedy shall not be the exclusive remedy of
the Landlord but the Landlord may, at its option, treat such default as a breach
of substantial obligation of this lease and shall have all the other remedies in
respect thereof provided in this or any other Article of this lease.
ARTICLE TWENTY-FIVE
DEFAULT
(a) Each of the following events shall be an "Event of Default" hereunder:
(1) if the Tenant shall default in the payment when due of any installment
of fixed rent or any item of additional rent when same shall be due and
such default shall continue for a period of five business days after notice
to Tenant; provided, however, that if Landlord shall give such notice two
or more times in any twelve-month period, Tenant shall not thereafter be
entitled to any such notice; or
(2) if the Tenant shall default in the observance or performance of any
term, covenant or condition of any other lease with the Landlord or the
Landlord's predecessor in interest beyond the expiration of any grace
period set forth in such other lease; or
(3) if the Premises shall be abandoned or deserted; or
(4) if a Bankruptcy Event shall occur; or
(5) if the conduct of the Tenant or any of its employees, agents or
visitors or any occupant of the Premises shall reasonably be deemed
objectionable by the Landlord or the Landlord's managing agent; or
(26)
(6) if the Tenant's interest or any portion thereof in this lease shall
devolve upon or pass to any person, whether by operation of law or
otherwise, except as expressly permitted by Article SEVENTEEN hereof; or
(7) if the lease is assigned, or all or part of the Premises are sublet to
a Related Entity and such Related Entity shall no longer (x) control, (y)
be under the control of, or (z) be under common control with the Tenant
(except for a permitted successor by merger, consolidation or purchase as
may be permitted by Article SEVENTEEN) and such Related Entity has not
vacated or been approved by Landlord within six months following the date
on which it ceases to be a Related Entity; or
(8) if the Tenant's obligations under this lease have been guaranteed by
any party and if the guarantor shall default in the observance or
performance of any of the terms of the guaranty or if the guarantor shall
repudiate the guaranty, or if the guaranty shall terminate or be terminated
for any reason without the prior written consent of the Landlord or in
accordance with the terms thereof; or
(9) if the Tenant shall default in the observance or performance of any
other term, covenant or condition of this lease and the Tenant shall fail
to remedy such default within thirty (30) days after notice from the
Landlord to the Tenant of such default, except that if the default is of
such a nature that it cannot with due diligence by remedied within such
thirty-day period, the Tenant shall not be in default if the Tenant shall
commence within said thirty-day period and thereafter diligently proceed to
complete all steps necessary to remedy such default, and further, so long
as the extension of such cure period shall not (i) subject the Landlord or
any superior lessor or mortgagee to prosecution for a crime or any other
fine or charge, (ii) subject the Premises, the building or the land upon
which the building is located to being condemned or vacated, (iii) subject
the land or the building to any lien or encumbrance, or (iv) result in the
termination of any superior lease or mortgage.
(b) If an Event of Default shall occur, the Landlord may, at any time
thereafter and at its option, give the Tenant ten (10) days written notice of
its intention to terminate this lease, and in such event, on the tenth day
following the giving of such notice, this lease and the term and all rights of
the Tenant under this lease shall expire and terminate as if that were the
Expiration Date and the Tenant shall immediately quit and surrender the
Premises, but the Tenant shall nonetheless be liable for all of its obligations
hereunder, as provided for in Article TWENTY-SIX.
(c) Notwithstanding the foregoing, if such termination is stayed by order
of any court having jurisdiction over any proceeding which constitutes a
Bankruptcy Event, or by federal or state statute, then, following the expiration
of any such stay, or if the trustee appointed in any such proceeding, the Tenant
or the Tenant as debtor-in-possession shall fail to assume the Tenant's
obligations under this lease within the period provided therefor by law or
within one hundred twenty (120) days after entry of the order for relief or as
may be allowed by the court, or if the trustee, the Tenant or the Tenant as
debtor-in-possession shall fail to provide adequate assurance of the complete
and continuous future performance of the Tenant's obligations under this lease
as provided in Article SEVENTEEN (o), the Landlord, to the extent permitted by
law or by leave of the court having jurisdiction over the proceeding
constituting the Bankruptcy Event, shall have the right, as its election, to
terminate this lease on five (5) days' notice to the Tenant, the Tenant as
debtor-in- possession or said trustee and upon the expiration of said five (5)
day period this lease shall cease and expire as aforesaid the Tenant, the Tenant
as debtor-in-possession or said trustee shall immediately quit and surrender the
Premises as aforesaid.
(d) If an Event of Default described in clause (a)(l) shall occur, or if
this lease shall be terminated in accordance with the provisions of clauses (b)
and (c) above, the Landlord, without notice, may reenter and repossess the
Premises using such force for that purpose as may be necessary without being
liable to indictment, prosecution or damages therefor and may dispossess the
Tenant by summary proceedings or otherwise.
(27)
(e) If an Event of Default shall occur prior to the date fixed as the
commencement of any renewal or extension of this lease, and shall remain uncured
as of such date, the Landlord may cancel and terminate such right of renewal or
extension by written notice to the Tenant.
ARTICLE TWENTY-SIX
REMEDIES AND DAMAGES
(a) If an Event of Default shall occur and if this lease shall be
terminated as provided in Article TWENTY-FIVE:
(i) The Landlord and its agents may immediately, or at any time thereafter,
re-enter the Premises and remove all persons and property therefrom, either
by summary dispossess proceedings, or by any suitable action or proceeding
at law, or by force or otherwise, without being liable to indictment,
prosecution or damages therefor, and repossess and enjoy the Premises,
together with all additions, alterations, installations and improvements,
and no entry by the Landlord shall be deemed an acceptance of surrender.
(ii) The Landlord may, at its option, re-let the Premises in whole or in
part, for such term or terms and for such rentals and upon such other
conditions, which may include concessions and free rent periods as the
Landlord, in its sole discretion, determine, even though the same may
extend beyond the Expiration Date. The Landlord shall have no liability to
the Tenant to re-let the Premises and the failure or refusal of the
Landlord to re-let the Premises or any part thereof, or if the Premises are
re-let, the failure of the Landlord to collect the rent under such
re-letting, shall not relieve the Tenant of any liability under this lease.
The Landlord may, at its option, make such repairs, replacements,
alterations, additions, improvements and other physical changes in and to
the Premises as the Landlord, in its sole discretion, considers advisable
or necessary in connection with any such re-letting. Any such re-letting
shall, as the Landlord's option, be either for the Landlord's own account,
or as the agent for the Tenant.
(b) The Tenant, on its behalf and on behalf of all persons claiming through
or under the Tenant, including all creditors, hereby expressly waives (i) any
and all right to regain possession of the Premises or to reinstate or redeem
this lease under any present or future law; (ii) the service of any notice
demanding rent or stating an intention to re-enter or to institute legal
proceedings to that end which may otherwise be required to be given under any
present or future law; and (iii) any and all rights of redemption and all other
rights to regain possession or to reinstate this lease, after (x) the Tenant
shall have been dispossessed by a judgment or by warrant of any court or judge,
or (y) any re-entry by the Landlord, or (z) any expiration or termination of
this lease, whether such dispossess, re-entry, expiration or termination shall
be by operation of law or pursuant to the provisions of this lease. Except as
otherwise provided by law, the Tenant and Landlord waive and will waive all
right to trial by jury in any summary proceedings and in any other proceeding or
action at law hereafter instituted by the Landlord against the Tenant in respect
of this lease, and also in any action or proceeding between the parties hereto
for any cause; and it is hereby agreed, that in any of such events, the matter
in dispute shall be tried before a judge without a jury. In the event the
Landlord shall commence any action or summary proceeding for non-payment of
rent, or other breach of any of the terms, covenants or conditions of this
lease, the Tenant agrees not to interpose any counterclaim of whatever nature or
description in any such action or proceeding, other than compulsory
counterclaims which would be deemed waived if not asserted by the Tenant. The
words "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 by
the Tenant, or anyone claiming by, through or under the Tenant, of any of the
covenants or provisions hereof, the Landlord shall have the right to obtain an
injunction and the right to invoke any remedy allowed at law or in equity as if
re-entry, summary proceedings and other remedies were not herein provided for.
The remedies set forth herein are cumulative and the mention in this lease of
any remedy shall not preclude the Landlord from exercising any other remedy
allowed at law or in equity.
(c) If this lease and the term shall expire as provided in Article
TWENTY-FIVE, or by or under any summary proceeding or any other action or
proceeding by the Landlord against the Tenant or any person claiming by, through
or under the Tenant, or if the Landlord shall re-enter the
(28)
Premises as provided in paragraph (a) above, or by or under any summary
proceeding or any other action or proceeding, then, in any of said events:
(i) The Tenant shall pay to the Landlord all fixed rent and additional rent
and other charges payable under this lease by the Tenant to the Landlord to
the date upon which this lease and the term shall have expired or has been
terminated by the Landlord;
(ii) The Tenant shall also be liable for and shall pay to the Landlord, as
liquidated damages, any deficiency (the "Deficiency") between the fixed
rent and additional rent reserved in this lease for the period which would
have constituted the unexpired portion of the term (including any renewal
term exercised by the Tenant prior to the termination of this lease or
re-entry by the Landlord, and in such case the additional rent for the
renewal term shall be assumed to be the same as was payable for the year
immediately preceding such termination or re-entry) and the net amount, if
any, actually received by the Landlord from any re-letting of the Premises
pursuant to paragraph (a)(ii) above. The Landlord shall be entitled to
deduct from the rentals actually collected under any re-letting all of the
expenses which Landlord incurred by reason of the Tenant's default and in
connection with such re-entry and re-letting, including, but not limited
to, all repossession costs, legal expenses, brokerage commissions,
attorneys' fees, court costs and disbursements, the cost of repairs,
re-decoration and alterations in preparing the Premises for re-letting, and
the amount of rent concessions and work allowances and the like granted in
connection with such re-letting. The Deficiency shall be paid in monthly
installments by the Tenant on the days specified in this lease for payment
of installments of fixed rent, and the Tenant shall not be entitled to
withhold any such payment until the Expiration Date set forth in this
Lease. The Landlord shall be entitled to recover from the Tenant each
monthly Deficiency as the same arises, and no suit to collect the amount of
the Deficiency for any month shall prejudice the Landlord's right to
collect the Deficiency for any subsequent month by a similar proceeding.
(iii) Whether or not the Landlord shall have collected any monthly
Deficiency, the Landlord shall be entitled to recover from the Tenant, and
the Tenant shall pay to the Landlord on demand, in lieu of any further
Deficiency as and for liquidated and agreed final damages, and not as a
penalty, a sum equal to the amount by which the rent for the period of the
unexpired portion of the lease term (commencing on the date immediately
succeeding the last day with respect to which a Deficiency payment, if any,
was collected) exceeds the then fair and reasonable rental value of the
Premises for the same period, both discounted to present value at six
percent (6%). If, before presentation of proof of such liquidated damages
to any court, the Premises, or any part thereof, shall have been relet by
the Landlord for the period which would have constituted the unexpired
portion of the term, or any part thereof, the amount of rent reserved upon
such reletting shall be deemed, prima facie, to be the fair and reasonable
rental value for the part or the whole of the Premises so relet.
(d) The liability of the Tenant shall survive the issuance of a final order
and warrant of dispossess, and re-entry by the Landlord, and any other
termination of this lease as a result of an Event of Default, and the granting
by the Landlord of a new lease upon the Premises to another tenant, and the
Tenant hereby waives any defense which might be predicated upon any of said acts
or events. If the Premises are re-let together with any other space in the
building, the rental collected and the expenses incurred in connection with such
re-letting shall be apportioned as reasonably determined by the Landlord. In no
event shall the Tenant be entitled to receive any rents collected or payable
under any re-letting, whether or not such rents exceed the fixed rent reserved
under this lease. Nothing contained in Articles TWENTY-FIVE or TWENTY-SIX shall
be deemed to limit or preclude the recovery by the Landlord from the Tenant of
the maximum amount allowed to be obtained as damages by any statute or rule of
law, or of any sums or damages to which the Landlord may be entitled in addition
to the damages set forth in paragraph (c) above.
ARTICLE TWENTY-SEVEN
SURRENDER AT EXPIRATION
Upon the expiration or any termination of the term of this lease, the
Tenant shall quit and surrender the Premises, together with any fixtures,
equipment or appurtenances installed in the
(29)
Premises at the commencement of this lease, and any alterations, decorations,
additions and improvements which are not to be removed in compliance with the
provisions of Article FOUR hereof, to the Landlord, in good order and condition,
ordinary wear excepted. The Tenant shall remove all its furnishings, trade
fixtures, stock in trade and like personal property in accord with the
requirements of Article FOUR, so as to leave the Premises broom-clean and in an
orderly condition. If the last day of the term of this lease falls on Saturday
or Sunday, this lease shall expire on the business day immediately preceding.
The Tenant's obligation to observe and perform this covenant shall survive the
expiration or other termination of the term of this lease. The Tenant expressly
waives, for itself and for any person claiming by, through or under the Tenant,
any rights which the Tenant or any such person may have under the provisions of
Section 2201 of the New York Civil Practice Law and Rules or any law of like
import then in force in connection with any holdover summary proceedings when
the Landlord may institute to enforce the provisions of this Article. The Tenant
acknowledges that possession of the Premises must be surrendered to the Landlord
on the Expiration Date. The parties recognize that the damage to the Landlord
resulting from any failure by the Tenant to timely surrender possession of the
Premises will be substantial, will exceed the amount of the monthly installments
of the fixed rent and additional rent payable hereunder and will be impossible
to accurately measure. The Tenant agrees that if possession of the Premises is
not delivered to the Landlord on the Expiration Date (or any sooner termination
date), in addition to any other rights or remedies the Landlord may have
hereunder or in equity or at law, and without in any manner limiting the
Landlord's right to demonstrate and collect any damages suffered by the
Landlord, the Tenant shall pay to the Landlord on account of use and occupancy
of the Premises for each month and for each portion of any month during which
the Tenant holds over in the Premises after the Expiration Date, (a) for the
first month following the Expiration Date, a sum equal to 125% of the aggregate
of the fixed rent and additional rent which was payable under this lease during
the last month of the term, (b) for the second month following the Expiration
Date, a sum equal to 150% of the aggregate of the fixed rent and additional rent
which was payable under this lease during the last month of the term, and (c)
for any month thereafter, a sum equal to 200% of the aggregate of the fixed rent
and additional rent which was payable under this lease during the last month of
the term, provided, however, that in no event shall the amount payable in any
month be less than the fair market value of the Premises. In addition, and
without in any manner limiting the Landlord's right to demonstrate and collect
any damages suffered by the Landlord and arising from the Tenant's failure to
surrender the Premises as provided herein, the Tenant shall indemnify and hold
the Landlord harmless from and against all cost, liability, damages and expenses
(including, without limitation, reasonable attorneys' fees and disbursements)
resulting from a delay of three months or more by the Tenant in so surrendering
the Premises, including, without limitation, any claims made by any succeeding
or prospective tenant as a result of such delay. Nothing herein contained shall
be deemed to permit the Tenant to retain possession of the Premises after the
Expiration Date (or sooner termination) of this lease or to limit in any manner
the Landlord's right to regain possession of the Premises through summary
proceedings, or otherwise, and no acceptance by the Landlord of payments from
the Tenant after the Expiration Date shall be deemed to be other than on account
of the amount to be paid by the Tenant in accordance with the provisions of this
Article. The provisions of this Article shall survive the expiration of the term
of this lease.
ARTICLE TWENTY-EIGHT
QUIET ENJOYMENT
The Landlord covenants that, if the Tenant shall duly keep and perform all
the terms and conditions hereof, the Tenant shall peaceably and quietly have,
hold and enjoy the Premises for the term aforesaid, free from interference from
the Landlord or anyone claiming by, through or under the Landlord, subject
however to ground leases, underlying leases and mortgages as hereinbefore
described, and to the lien, rights and estate by virtue of unpaid taxes of any
government having jurisdiction of the Premises of which the herein Premises are
a part.
ARTICLE TWENTY-NINE
SECURITY DEPOSIT
(a) Tenant is simultaneously entering into three separate leases with
Landlord, one at ▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ (the "One ▇▇▇▇▇▇ Square Lease"), one at ▇▇▇
▇▇▇▇▇▇ ▇▇▇▇▇▇ (the "▇▇▇▇▇▇ Street Lease") and one at ▇▇-▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ (the
"Vestry Street Lease"). Pursuant to the One ▇▇▇▇▇▇
(30)
Square Lease, Tenant has deposited with Landlord a certain sum, with scheduled
reductions over time. It is the intention of the parties that the sum so
deposited by Tenant shall constitute security for all three leases and that
there shall be no allocation of the security deposit among the several leases.
The provisions of Article Twenty-nine of the One ▇▇▇▇▇▇ Square Lease are
incorporated herein by reference as if set forth at length. Unless otherwise
agreed to in writing by Landlord, the surrender or early termination of any one
of the three lease shall not entitle Tenant to a return of the security deposit
until all three of the leases have expired or other terminated and all of
Tenant's obligations have been satisfied.
ARTICLE THIRTY
REAL ESTATE TAX AND OPERATING EXPENSE ESCALATION
(a) Real Estate Taxes Escalation. In order to adjust, during the term of
this lease, for increases in the expenses of the Landlord for Real Estate Taxes,
the Tenant, commencing on April 1, 2001 and in each year thereafter, shall pay
to the Landlord, as additional rent, the Tenant's Proportionate Share of any
Increase in such Real Estate Taxes, all in accordance with paragraphs (c)
through (g) below.
(b) Operating Expense Escalation. In order to adjust, during the term of
this lease, for increases in the expenses of the Landlord in operating the
building, the Tenant shall pay to the Landlord, as additional rent, commencing
on April 1, 2001 and on each April 1 thereafter, the amount indicated in
Schedule 1 as the Operating Expense Payment, such amount to be paid (in addition
to the annual fixed rent) in twelve equal monthly installments.
(c) Definitions. As used in this Article the following capitalized words or
expressions shall have the meaning ascribed to them below:
1. "Real Estate Taxes" shall mean and include all expenditures of the
Landlord for taxes or assessments payable by the Landlord, as finally
determined, upon or with respect to the building and the land upon which it
is located, imposed by Federal, State or local government (plus all
reasonable expenditures for fees and expenses incurred in the course of
obtaining a reduction in any tentative assessed valuation), but shall not
include income, franchise, inheritance or capital stock or like taxes.
2. "Increase in Real Estate Taxes" shall mean the amount by which Real
Estate Taxes in any Subsequent Year, exceed the real estate taxes in the
Base Year (the "Base Real Estate Taxes").
3. "Projected Real Estate Taxes" shall mean the Landlord's reasonable
estimate of Real Estate Taxes for the particular Subsequent Year.
4. "Comparative Statement" shall mean a statement, in writing signed by
the Landlord, or on its behalf by an officer of any corporation acting as
its managing agent, showing (i) a comparison of (a) Real Estate Taxes for
the Base Year with (b) Projected Real Estate Taxes for the upcoming
Subsequent Year, (ii) if the Tenant paid additional rent pursuant to this
Article with respect to the immediately preceding Subsequent Year as a
result of Increase in Real Estate Taxes, any adjustment necessitated by a
variance between Projected Real Estate Taxes for such immediately preceding
Subsequent Year (as shown in the current Comparative Statement) and the
actual Real Estate Taxes for such immediately preceding Subsequent Year (as
shown in the last Comparative Statement) and (iii) the Operating Expense
Payment for the then current Subsequent Year. At the request of the Tenant,
the Comparative Statement shall be accompanied by a copy of the most recent
statement for real estate taxes for the Premises received by Landlord from
the City of New York.
5. "Tenant's Proportionate Share" shall mean 8.67%.
(31)
6. "Base Year" shall mean the calendar year 2000. The Base Real Estate
Taxes shall be computed as the average of the Real Estate Taxes for the
1999/2000 and 2000/2001 fiscal years.
7. "Subsequent Year" shall mean each twelve-month period commencing
April 1, starting with the period commencing April 1, 2001.
(d) Statements for the Tenant. Prior to April 1, 2001, and on or before
that day in each Subsequent Year, the Landlord will furnish a Comparative
Statement to the Tenant. The failure of the Landlord to furnish a Comparative
Statement shall be without prejudice to the right of the Landlord to furnish a
Comparative Statement at any time in the future.
Every Comparative Statement furnished by the Landlord pursuant to this
Article shall be conclusive and binding upon Tenant unless within the later of
(i) ninety (90) days after the receipt of such Comparative Statement, or (ii)
ninety (90) days after the Tenant has received a copy of the tax ▇▇▇▇ if the
Tenant has requested a copy of the tax ▇▇▇▇ within ninety days after receipt of
the Comparative Statement, Tenant shall notify Landlord that it disputes the
correctness thereof, specifying the particular respects in which such
Comparative Statement is claimed to be incorrect. Pending the determination of
such dispute, Tenant shall pay additional rent in accordance with such
Comparative Statement and such payment shall be without prejudice to Tenant's
position and to the Tenant's rights to a refund of any overpayment. If the
dispute shall be determined in Tenant's favor, Landlord shall within five
business days after Landlord's receipt of the notice of such determination, pay
Tenant the amount of Tenant's overpayment of additional rent resulting from
compliance with such Comparative Statement. This provision shall survive the
expiration or termination of the lease and shall be binding on the successors of
each party.
(e) Computation of Increases in Rent Payable by Tenant. When the Landlord
shall furnish the Tenant with any Comparative Statement in accordance with this
Article which shall show an Increase in Projected Real Estate Taxes, then
commencing April 1, 2001, and on April 1 of each Subsequent Year in question, in
addition to the increase in rent attributable to the Operating Expense Payment
for such Subsequent Year, the rent payable under the lease shall be increased by
the Tenant's Proportionate Share of the increase in the Projected Real Estate
Taxes. Such increases shall be payable (with payment on account of such
increases) as follows: on the first day for the payment of rent under this lease
following the receipt of the Comparative Statement, the Tenant shall pay to the
Landlord the sum equal to (1) the aggregate of one-twelfth of the Tenant's
Proportionate Share of the increase in Projected Real Estate Taxes, plus or
minus, as the case may be, (2) any adjustment necessitated by a variance between
(x) the Projected Real Estate Taxes for such immediately preceding Subsequent
Year and (y) the actual Real Estate Taxes for such immediately preceding
Subsequent Year, plus (3) one-twelfth of the Tenant's Operating Expenses
payment. Until a different Comparative Statement shall be submitted as above
provided, the monthly installments or rent payable under this lease due to an
Increase in Projected Real Estate Taxes shall continue to be increased by such
amount; however, notwithstanding any other provision herein, the failure of the
Landlord to submit a Comparative Statement in any Subsequent Year shall not
affect the amounts payable by Tenant as Operating Expense Payment in such
Subsequent Year.
With respect to the Comparative Statement furnished to the Tenant in the
Subsequent Year following the year in which the term of this lease terminates,
if such Comparative Statement shall indicate an adjustment necessitated by a
variance of the type referred to in clauses (x) and (y) in the immediately
preceding paragraph, then the Tenant shall promptly pay to the Landlord, or the
Landlord promptly shall pay to the Tenant, as the case may be, the amount of any
such adjustment as indicated in such Comparative Statement.
(f) Inspection of Books. The Tenant or its authorized representative shall
have a right to examine the books of the Landlord showing the Real Estate Taxes
with respect to the building during regular business hours for the purpose of
verifying the information set forth in any Comparative Statement relating to any
Increase in Real Estate Taxes shown in such Comparative Statement; provided that
a written request for such inspection is made by the Tenant within 120 days of
the receipt of any such Comparative Statement.
(32)
(g) Decreases in Real Estate Taxes. In no event shall any decrease in the
Real Estate Taxes in any way reduce the fixed rent or additional rent payable by
the Tenant under this lease, except to the extent to which a decrease in Real
Estate Taxes shall result in a decrease in the additional rent payable pursuant
to paragraph (a) of this Article; provided, however, that no decrease in Real
Estate taxes shall in any way reduce any additional rent payable on account of
any Operating Expense Payment.
ARTICLE THIRTY-ONE
SERVICES
(a) For purposes of this lease, "Business Hours" shall mean normal building
operation hours of eight a.m. to six p.m. and "Business Days" shall mean Monday
through Friday, except for those days designated as legal holidays by the
Federal or State government or by the unions now or hereafter representing the
Landlord's building personnel.
(b) During the term of this lease, the Landlord shall furnish during
Business Hours on Business Days passenger and freight elevator service with the
elevators now or hereafter in the building sufficient heat during the cold
season to heat the Premises, and, if applicable, condenser water from the
Landlord's cooling tower equipment located on the roof of the building from
April 15th through October 15th. The Landlord shall maintain in service and
available for the non exclusive use of the Tenant at least one passenger
elevator at all times. If the Tenant requires freight elevator service, heat,
or, if applicable, condenser water, on non-Business Days or during non-Business
Hours on Business Days, the Landlord will furnish the additional requested
service upon notice of the Tenant's need therefor. Such notice may be written or
oral and shall be given prior to 2 p.m. on the day upon which such service is
requested or by 2 p.m. of the last preceding Business Day if service is
requested on other than a Business Day. The Tenant will pay for any overtime
freight elevator service, heat, and, if applicable, condenser water, at the
respective prevailing rates per hour as established from time to time by the
Landlord for such services at the building or in the buildings of the Landlord,
generally, for each hour during which the additional service is supplied. All
charges for such overtime service shall constitute additional rent and shall be
payable within fifteen (15) days after presentation of a ▇▇▇▇, and in the event
of default of payment therefor, the Landlord may refuse further service and the
Landlord shall have all remedies available to it for collection herein specified
with respect to rent. The failure on the part of the Landlord to furnish
elevator service, heat, or, if applicable, condenser water, if due to
breakdowns, repairs, maintenance, strikes or other causes beyond the control of
the Landlord, shall involve no liability on the part of the Landlord and shall
not constitute an actual or constructive eviction, nor relieve the Tenant from
any of its obligations under this lease nor entitle the Tenant to an abatement
of rent.
(c) The Tenant shall maintain, at its own cost and expense, all
air-conditioning equipment now or hereafter serving the premises, using a
contractor approved by the Landlord. If the Tenant fails to make any necessary
repairs, the Landlord may perform the same for the account of the Tenant in
accordance with the provisions of this lease.
(d) Provided the Tenant shall keep the Premises in order, the Landlord, at
the Landlord's expense, shall cause the Premises, excluding any portions thereof
used for the storage, preparation, service or consumption of food or beverages,
to be cleaned on Business Days substantially in accordance with the
Specifications set forth as Schedule B annexed hereto. The Tenant, at the
Tenant's sole cost and expense, shall cause all portions of the Premises used
for the storage, preparation, service or consumption of food or beverages to be
cleaned daily in a manner reasonably satisfactory to the Landlord, and to be
exterminated against infestation by vermin, rodents or roaches regularly and, in
addition, whenever there shall be evidence of any infestation. Any such
extermination shall be done at the Tenant's sole cost and expense and by
contractors reasonably approved by the Landlord. If the Tenant shall perform any
additional cleaning services in addition to the services provided by the
Landlord, the Tenant shall employ such cleaning contractor providing services to
the building on behalf of the Landlord or such other cleaning contractor as
shall be approved by the Landlord. The Tenant shall, at its sole cost and
expense, comply with all present and future laws, ordinances, regulations and
requirements of the City, State or Federal Government or any agency having
jurisdiction over the building, or any rules which the Landlord
(33)
may reasonably impose, with respect to the recycling or sorting of refuse and
rubbish. The Landlord reserves the right to refuse to collect or accept from the
Tenant any refuse or rubbish which is not separated and sorted as required and
to require the Tenant to arrange for such collection, at the Tenant's sole cost
and expense, using a contractor reasonably satisfactory to the Landlord. The
Tenant shall indemnify the Landlord from all liability arising from the Tenant's
failure to comply with the provisions of this Article. The Tenant shall pay to
the Landlord the cost of removal of any of the Tenant's refuse and rubbish from
the building which exceeds normal office requirements.
(e) The Landlord shall provide to the Premises hot and cold water for
ordinary drinking, cleaning and lavatory purposes. If the Tenant uses or
consumes water for any other purposes or in unusual quantities (of which fact
the Landlord shall be the sole judge), the Landlord may, at the Tenant's
expense, install a water meter or require the Tenant to install a meter. The
Tenant shall thereafter maintain the meter in good working order at the Tenant's
expense and the Tenant shall pay for water consumed as shown on said meter as
additional rent as and when bills are rendered at 110% of the Landlord's cost
therefor. In default in making such payment, the Landlord may pay such charges
and collect the same from the Tenant. The Tenant shall pay the New York City
sewer rents, charges or any other tax apportioned to the Tenant's metered
consumption of water at the Premises. The apportionment of the sewer rent to the
Premises shall be made in accord with the measurement or apportionment of water
consumed at the Premises as provided herein. The sewer rents shall be billed
with the water charges and shall constitute additional rent.
(f) The Landlord may suspend any service which it is required to provide
hereunder, if it should become necessary or proper so to do, at any time. The
Landlord shall restore such service within a reasonable time, making due
allowance for labor troubles, acts of God, or any cause beyond the Landlord's
control. Should the Tenant be in default in the payment of any rent hereunder,
the Landlord may, upon not less than three days' notice, and without diminution
of the liability of the Tenant hereunder, and without constituting an eviction,
constructive or otherwise, suspend or refuse the Tenant freight elevator service
and should the Tenant, after notice, violate the provisions of Rule 11, the
Landlord may, without any diminution of such liability or constituting such
eviction, suspend or refuse the Tenant freight elevator service until the
conditions in violation of Rule 11 have been fully remedied.
(g) The Landlord shall be entitled to refuse to furnish passenger or
freight elevator service in connection with any sale at auction of the Tenant's
fixtures, machinery, stock in trade and other property or a sale in any other
manner of all or substantially all of such property unless the Landlord shall
have been given not less than two days' notice of the intention to hold the
auction or other sale and unless the Landlord shall be given an undertaking by a
person, firm or corporation of satisfactory financial resources wherein the
Landlord shall be indemnified against (i) all expense incurred by the Landlord
in connection with the removal by purchasers of any property sold to them at the
auction or other sale, (ii) all expense for removal or storage of any property
sold at the auction or other sale which is not removed by the purchaser within
two days following the sale, and (iii) all expenses which the Landlord may incur
for the removal of property not sold and waste and rubbish from the Premises.
(h) The Tenant shall have access to and the main entry to the building
shall be open and staffed by a doorman, security guard, concierge or attendant
twenty-four (24) hours a day, seven (7) days a week. During Business Hours on
Business Days, messengers shall have access to the Premises through the
passenger elevators, or, if bulky packages are being delivered, through the
freight elevator. During non-Business Hours or on non-Business Days, messengers
shall have access to the Premises. The Landlord reserves the right, during the
term of this lease, to designate an area in the building for packages to be
delivered, either for transmittal to the Tenant, or notification to the Tenant
of the delivery of same.
(34)
ARTICLE THIRTY-TWO
INSURANCE
(a) The Tenant shall obtain and keep in full force and effect during the
term of this lease, at the Tenant's sole cost and expense, (i) a policy of
comprehensive general public liability and property damage insurance on an
occurrence basis, with a broad form contractual liability endorsement and a
completed operations endorsement with minimum limits with a combined single
limit with respect to each occurrence in an amount of not less than $5,000,000
for injury (or death) to persons and damage to property; (ii) an "all risk"
insurance policy, with extended coverage, covering all of Tenant's personal
property and alterations for 100% of the replacement cost thereof, as well as
business interruption insurance adequate to cover the Tenant's loss of income as
a result of a loss sustained by a peril covered under the policy; (iii) Worker's
Compensation Insurance, as required by law; and (iv) such other insurance in
such amounts as Landlord may reasonably require from time to time. Such policies
shall provide that the Tenant is named as the insured. Landlord and any managing
agent, lessors and mortgagees (whose names have been furnished to the Tenant)
shall be named as additional insureds, as their respective interests may appear.
The Tenant shall have the right to insure and maintain the insurance coverages
required under this Article under blanket insurance policies covering other
premises occupied by the Tenant so long as such blanket policies comply as to
terms and amounts with the requirements set forth in this Article; provided
that, upon request, the Tenant shall deliver to the Landlord a certificate from
the Tenant's insurer evidencing the portion of such blanket insurance allocable
to the Premises.
(b) All insurance required to be carried by Tenant hereunder shall be
written in form and substance reasonably satisfactory to the Landlord and issued
by a reputable and independent insurer permitted to do business in the State of
New York, and rated in Best's Insurance Guide (or any successor thereto) as
having a general policyholder rating of not less than "A" and a financial rating
of at least "XIII". The policy required to be carried pursuant to paragraph (a)
(i) above shall contain a provision that (1) the policy shall be non-cancelable
with respect to the Landlord and such managing agents, lessors and mortgagees
(whose names and addresses have been furnished to the Tenant) unless thirty (30)
days' prior written notice shall be given to the Landlord by certified mail,
return receipt requested, which notice shall contain the policy number and the
name of the insured and additional insureds, and (2) no act or omission of the
Tenant shall affect or limit the obligation of the insurer to pay the amount of
any loss sustained. Certificates of insurance (including endorsements and
evidence of the waivers of subrogation required pursuant to Article SIXTEEN
hereof), or evidence of renewal of such coverage, shall be delivered to the
Landlord prior to the Commencement Date (or any earlier entry upon the Premises
by the Tenant or any of the Tenant's employees, agents or contractors prior to
the Commencement Date), and at least thirty (30) days prior to the expiration of
such policy. If the Tenant fails to obtain or keep in force the insurance
required by this Article, or to pay the premiums thereof, provided the Tenant is
afforded written notice of the Landlord's intention to pay such premium ten (10)
days prior thereto, in addition to all other rights the Landlord may have under
this lease, the Landlord may, from time to time, and as often as such failure
shall occur, pay the premiums therefor, and any and all sums so paid for
insurance by the Landlord shall be and become, and are hereby declared to be,
additional rent under this lease and shall be due and payable within fifteen
(15) days after rendition of a ▇▇▇▇ therefor.
ARTICLE THIRTY-THREE
DEFAULT UNDER OTHER LEASES
Intentionally omitted.
ARTICLE THIRTY-FOUR
WORK TO BE DONE BY LANDLORD
If work of any nature is agreed herein to be done by the Landlord, the
Tenant agrees that it may be done after the Commencement Date and that no rebate
of rent or allowance will be granted therefor, except as set forth in paragraph
(g) of Article One hereof. The Landlord shall not be required to furnish any
work or materials to the Premises, except as expressly provided in the Work
(35)
Letter attached to this lease Exhibit C. In case the Landlord is prevented from
making any repairs, improvements, decorations or alterations, installing any
fixtures or articles of equipment, furnishing any services or performing any
other covenant herein contained to be performed on the Landlord's part, due to
the Landlord's inability to obtain, or difficulty in obtaining, labor or
materials necessary therefor, or due to any governmental rules and regulations
relating to the priority of national defense requirements or strikes, or due to
labor troubles, accident or due to any other cause beyond the Landlord's
control, the Landlord shall not be liable to the Tenant for damages resulting
therefrom, nor (except as expressly otherwise provided in Article SIXTEEN hereof
in respect of damage to the Premises due to fire), shall the Tenant be entitled
to any abatement or reduction of rent by reason thereof, nor shall the same give
rise to a claim in the Tenant's favor that such failure constitutes actual or
constructive, total or partial, eviction from the Premises.
ARTICLE THIRTY-FIVE
CONSENT TO JURISDICTION
This lease shall be governed in all respects by the laws of the State of
New York. The Tenant irrevocably consents and submits to the jurisdiction of any
Federal, State, or county court sitting in the State of New York in any action
or proceeding arising out of this lease and/or the use and occupation of the
Premises. The Tenant agrees that any action or proceeding brought by the Tenant
against the Landlord in respect of any matters arising out of or relating to
this lease may only be brought in the State of New York, County of New York. The
Tenant hereby irrevocably designates Colby Attorneys Service Co., Inc., ▇▇ ▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇, ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ to accept service of process on the
Tenant's behalf and agrees that such service shall be deemed sufficient. If the
Tenant is not a New York partnership or corporation or a foreign corporation
qualified to do business in the State of New York, it shall designate in
writing, an agent in New York County for service under the laws of the State of
New York.
ARTICLE THIRTY-SIX
TENANT LIABILITY
(a) If more than one tenant is named as the tenant under this lease, each
of the named tenants shall be jointly and severally liable for the performance
of all of the terms, covenants and agreements on the Tenant's part to be
performed under this lease.
(b) If the Tenant (or any permitted assignee of Tenant) is a partnership
(or is comprised of two or more persons, individually or as co-partners of a
partnership or shareholders of a professional corporation) the following
provisions shall apply to each tenant: (i) the liability of each of the partners
comprising the Tenant shall be joint and several; (ii) each of the parties
comprising the Tenant hereby consents in advance to, and agrees to be bound by,
any modification, termination, discharge or surrender of this lease which may
hereafter be made and by any notices, or other communications which may
hereafter be given by the Tenant or any of the parties comprising the Tenant;
(iii) all statements, notices or other communications given to the Tenant or to
any of the parties comprising the Tenant shall be deemed given to the Tenant and
all parties; (iv) if the Tenant shall admit new partners, all such new partners
shall, by their admission to the Tenant, be deemed to have assumed performance
of all of the terms, covenants and conditions of this lease on Tenant's part to
be observed and performed, and (v) the Tenant shall give to the Landlord notice
of the admission of any new partners, and upon demand of the Landlord, such new
partners shall execute and deliver to the Landlord an agreement in form
satisfactory to the Landlord, wherein each new partner shall assume performance
of all of the terms, covenants and conditions of this lease on Tenant's part to
be performed (but the Landlord's failure to request such an agreement nor the
partners failure to deliver such an agreement shall relieve the partner of its
liability hereunder).
(c) If the Tenant is a partnership, it shall not convert to or become a
corporation, limited liability company, registered limited liability partnership
or any other form of business organization (such entity being referred to as a
"Successor Entity"), without the Landlord's prior written consent. The Landlord
shall not unreasonably withhold its consent to the Tenant's conversion to a
Successor Entity provided that (i) the Tenant shall cause each partner of the
Tenant to execute and deliver to the Landlord an agreement, in a form reasonably
satisfactory to the Landlord, pursuant to which
(36)
each partner of the Tenant agrees to remain personally liable jointly and
severally for all of the terms, covenants and conditions of the lease that are
to be performed by the Successor Entity; (ii) the Successor Entity shall have a
Net Worth (as hereinbefore defined) of not less than the Net Worth of the Tenant
on the date of execution of the lease; (iii) no Event of Default has occurred
and is continuing hereunder; (iv) the Successor Entity succeeds to all of the
business and assets of the Tenant; (v) the Tenant shall deliver to the Landlord
such documentation as may be reasonably required by the Landlord to evidence
compliance with the requirements set forth above; and (vi) the Tenant shall
reimburse the Landlord for all reasonable costs and expenses, including, without
limitation, attorneys' fees, that may be incurred by the Landlord in connection
with the conversion of the Tenant to a Successor Entity.
ARTICLE THIRTY-SEVEN
ADJACENT EXCAVATION-SHORING
If an excavation shall be made upon land adjacent to the Premises, or shall
be authorized to be made, the Tenant shall afford to the person causing or
authorized to cause such excavation, license to enter upon the Premises for the
purpose of doing such work as said person shall deem necessary to preserve the
wall or the building from injury or damage and to support the same by proper
foundations without any claim for damages or indemnity against the Landlord, or
diminution or abatement of rent.
ARTICLE THIRTY-EIGHT
FAILURE TO GIVE POSSESSION
In the event the Landlord, for any reason, shall be unable to give
possession of the Premises by the date set forth in this lease for the
commencement of the term, this lease shall nevertheless continue in full force
and effect and the Landlord shall tender and the Tenant shall take possession of
said Premises under the terms of this lease as soon as the Landlord shall have
tendered possession thereof to the Tenant; the rent, however, to begin on the
date upon which such possession is tendered to the Tenant, subject to the free
rent provisions of paragraph (g) of Article One. This is intended to constitute
an "express provision to the contrary" within the meaning of Section 223-a of
the New York Real Property Law. No such failure to give possession on the date
set forth in this lease for the commencement of this term shall affect the
validity of this lease or give rise to any claim for damages by the Tenant or
claim for rescission of this lease, nor shall the same be construed in any way
to extend the term of this lease. In the event that any tenant holds over in
Premises demised to the Tenant hereunder, Landlord shall use reasonably
commercial efforts, including the institution of summary proceedings, to obtain
possession of such Premises.
ARTICLE THIRTY-NINE
BROKER
The Tenant represents and warrants to the Landlord that all of the Tenant's
negotiations respecting this lease which were conducted with or through any
person, firm or corporation, other than the officers of the Landlord, were
conducted through Plymouth Partners, Ltd. (the "Broker"). The Landlord agrees to
pay the commission due to the Broker pursuant to the terms of a separate
agreement. Landlord and Tenant agree to indemnify and hold one another harmless
from and against all demands, liabilities, losses, causes of action, damages,
costs and expenses (including, without limitation, attorneys' fees and
disbursements) suffered or incurred in connection with any claims for a
brokerage commission, finder's fee, consultation fees or other compensation
arising out of any conversations or negotiations had by the party against whom
indemnification is claimed with any broker or other party except for the Broker.
ARTICLE FORTY
RENT RESTRICTIONS
If at the commencement of, or at any time or times during the term of this
lease, the fixed rent or additional rent reserved in this lease shall be or
become uncollectible by virtue of any law, governmental order or regulation, the
Tenant shall enter into such agreements and take such other
(37)
steps (without additional expense to the Tenant) as the Landlord may reasonably
request and as may be legally permissible to permit the Landlord to collect the
maximum amounts which may from time to time be legally collectible while such
restrictions are in effect (and not in excess of the amounts reserved for under
this lease). Upon the termination of such rent restrictions (a) the fixed rent
and additional rent shall become and thereafter be payable in accordance with
the terms of this lease, and (b) the Tenant shall pay to the Landlord, if
legally permissible, an amount equal to (i) the rent which would have been paid
during the period had such restrictions not been in effect, less (ii) the rents
which were paid by the Tenant to the Landlord during the period such
restrictions were in effect.
ARTICLE FORTY-ONE
CERTIFICATES BY TENANT
At any time and from time to time, the Tenant, for the benefit of the
Landlord or any other entity specified by the Landlord, within fifteen business
days after request, shall deliver to the Landlord a duly executed and
acknowledged certificate, certifying that this lease is not modified and is 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); the
commencement and expiration dates of the lease; the dates to which rent and
additional rent have been paid; whether or not, to the best knowledge of the
Tenant, there are any existing defaults on the part of either the Landlord or
the Tenant in the performance of the terms, covenants and conditions of the
lease to be performed by such party, and if so, specifying the default; and such
other information as the Landlord may reasonably request with respect to this
lease.
ARTICLE FORTY-TWO
RESTRICTIONS ON TENANT'S USE
(a) The Tenant agrees that the value of the Premises and the building of
which the Premises form a part and the reputation of the Landlord will be
seriously injured if the Premises are used for any obscene or pornographic
purposes or any sort of commercial sex establishment. The Tenant covenants and
agrees not to sell, display or post, or knowingly allow to be sold, displayed or
posted any obscene or pornographic material on the Premises. The Tenant agrees
that if at any time the Tenant violates any of the provisions of this Article,
such violation shall be deemed a breach of a substantial obligation of the terms
of this lease.
(b) The Tenant covenants and agrees that during the term of this lease, it
will not use the Premises or any part thereof, or permit the Premises or any
part thereof to be used (1) for banking, trust company or safe deposit business;
(2) as or by a commercial or savings bank, a trust company, a savings and loan
association, a loan company, or a credit union; (3) for the sale or travelers
checks, money orders and/or foreign exchange; (4) as a restaurant and/or bar
and/or for the sale of soda and/or beverage and/or sandwiches and/or ice cream
and/or baked goods; (5) by the United States Government, the City or State of
New York, any foreign government, the United Nations or any agency or department
of any of the foregoing, or any other person or entity having sovereign or
diplomatic immunity; (6) as an employment agency, search firm or similar
enterprise, school or vocational training center (except for the training of
employees of the Tenant intended to be employed at the Premises); (7) as a
▇▇▇▇▇▇ shop or beauty salon; or (8) as a diagnostic medical center and/or for
the practice of medicine.
ARTICLE FORTY-THREE
HAZARDOUS MATERIALS
The Tenant shall not cause or permit any Hazardous Materials to be used,
stored, transported, released, handled, produced or installed in, on or from the
Premises or the building. "Hazardous Materials" shall mean any flammable,
explosives, radioactive materials, hazardous wastes, hazardous and toxic
substances, asbestos or any material containing asbestos, or any other substance
or material which would be defined as a hazardous or toxic substance,
contaminant, or pollutant, or otherwise regulated by any Federal, state or local
environmental law, rule or regulation, including without limitation, the
Comprehensive Environmental Response Compensation and Liability Act of 1980, as
amended. In the event of a violation of the foregoing provisions of this
Article, the
(38)
Landlord may, without notice and without regard to any grace period contained in
this lease, take all remedial action deemed necessary by the Landlord to correct
such condition and the Tenant shall reimburse the Landlord for the cost thereof,
upon demand, as additional rent. Nothing contained herein shall prevent the
Tenant from maintaining customary and normal cleaning supplies and office
equipment and supplies, provided such items are used and stored in compliance
with the requirements of all applicable laws.
ARTICLE FORTY-FOUR
MISCELLANEOUS
(a) This lease contains the entire agreement between the parties and all
prior negotiations and agreements are merged into this lease.
(b) This lease may not be recorded.
(c) The covenants, conditions and agreements contained in this lease shall
bind and inure to the benefit of the Landlord and the Tenant and their
respective heirs, executors, administrators, successors and permitted assigns.
(d) If any term, covenant or provision of this lease, or the application
thereof, shall be held invalid or unenforceable, the remainder of this lease, or
the application thereof to situations other than that as to which it is invalid
or unenforceable, shall not be affected thereby, and each term, covenant and
provision shall be valid and enforceable to the fullest extent permitted by law.
(e) The submission of this lease for execution by the Tenant shall not be
binding upon the Landlord or the Tenant unless and until both the Landlord and
the Tenant have executed and unconditionally delivered a fully executed copy of
this lease to each other.
(f) The captions in this lease are inserted for convenience only and shall
not define, limit or describe the scope of the provisions to which any of them
apply. The use of any pronoun referring to either of the parties to this lease
shall be construed to include any or no gender and any number.
(g) If the Tenant is a corporation, the person executing this lease on
behalf of the Tenant represents and warrants that the Tenant is duly
incorporated and, if applicable, is duly qualified and authorized to conduct
business in the State of New York, and the person executing this lease on behalf
of the Tenant has been duly authorized to do so. The Tenant shall provide the
Landlord with a copy of a resolution to this effect, and evidence of its due
incorporation and qualification, if applicable, upon request of the Landlord.
ARTICLE FORTY-FIVE
ANTENNA INSTALLATION
(a) The Tenant shall have the right to use a portion of the roof of the
building designated by Landlord (such area to be referred to herein as the
"Tenant's Roof Area") for the installation, operation, maintenance and removal
of a "whip" antenna or a dish antenna not exceeding 24 inches in diameter. The
Tenant shall pay as additional rent the sum of $300 per month. The antenna may
be used for receiving only, and not for any form of transmitting other than
microwave transmission to other buildings. All equipment, including all
supporting structures, shall fit entirely within Tenant's Roof Area.
(b) The Tenant shall not install any equipment on the Tenant's Roof Area or
make any alteration, additions or improvement to the Tenant's Roof Area, nor
incur any expense therefor, without having first obtained the written consent of
the Landlord therefor, including with respect to the location and placement of
any such equipment. The Landlord may withhold its consent to the installation of
additional equipment on the roof of the building for any or no reason, but if
Landlord consents to the installation of additional equipment, the Tenant shall
pay as additional rent hereunder the prevailing rate then being charged by the
Landlord for the provision of such additional space. Any equipment to be
installed on the roof shall (i) not cause interference with
(39)
any equipment then present on the roof, and (ii) be installed in accordance with
the provisions of this lease. If the Tenant shall desire to install any
equipment on the Tenant's Roof Area or make any alterations, additions or
improvements to the Tenant's Roof Area, the Tenant shall furnish the Landlord
with the Tenant's plans and specifications for the proposed installation,
alteration, addition or improvement in reasonably satisfactory detail. Whenever
any installations, additions or improvements on or of the Tenant's Roof Area are
made by the Tenant, the Tenant shall not employ or permit to be employed therein
any labor which will cause strikes or labor troubles with other employees in the
building employed by the Landlord or its contractors. All installations,
alterations, additions or improvements shall be made and installed in a good and
workmanlike manner and shall comply with all Legal Requirements, and shall
conform to any reasonable requirements of the Landlord expressed in its consent
for the making of any such installations, alterations, additions, and
improvements. The installation shall be done at the sole cost of the Tenant. Any
such work once begun shall be completed with all reasonable dispatch, but shall
be done at such time and in such manner as not to interfere with the occupancy
of any other tenant or the progress of any work being performed by or on account
of the Landlord. The Landlord may require that its personnel or contractor be
present during the installation and removal of the Tenant's equipment, and any
maintenance and repair thereof, and the Tenant shall reimburse the Landlord for
the reasonable charges incurred by the Landlord in connection therewith.
Additionally, the Landlord may, at its option, either require that the
Landlord's contractor physically connect the wiring required for the operation
of Tenant's equipment to the building's electrical system, or require its
personnel or contractor to be present when such work is done, and, in either
case, the Tenant shall reimburse the Landlord for the reasonable out-of-pocket
costs incurred by the Landlord in connection therewith.
(c) All installations, alterations, additions or improvements, which may be
made or installed on or upon the Tenant's Roof Area shall be removed at the cost
and expense of the Tenant upon the expiration or sooner termination of the term
of this lease. The Tenant shall restore and repair, at its own cost and expense,
any damage or disfigurement of the Tenant's roof Area or any other portion of
the roof of the building occasioned by any such removals or remaining after such
removals, so as to leave the roof of the building in good order and condition.
If the Tenant fails to perform any repair or restoration work within ten days
after notice from the Landlord of the need therefor, the Landlord, at its
option, may do such restoration and repair and the Tenant will pay the cost
thereof upon demand. If any equipment installed by the Tenant on the Tenant's
Roof Area shall not be removed at the expiration or any termination of this
lease, the Landlord, at the Landlord's option, may treat the same as having been
irrevocably abandoned, in which case the Tenant shall have no further right,
title or interest therein and the Landlord may remove the same, disposing of it
in any way which the Landlord sees fit to do, and the Tenant shall, on demand,
pay to the Landlord the reasonable expense incurred by the Landlord for the
removal thereof, as well as the reasonable cost of any restoration above
provided. The Tenant's obligations under this subparagraph (c) of this Article
shall survive the expiration or sooner termination of the term of this lease.
(d) The Tenant shall take good care of the Tenant's Roof Area and shall
make, as and when needed, all repairs in or about the roof of the building
(including, without limitation, the Tenant's Roof Area) which are required as a
result of (i) Tenant's installation and operation of its equipment on the
Tenant's Roof Area, and (ii) Tenant's utilization of the Tenant's Roof Area and
the wear and tear resulting therefrom. All repairs shall be equal in quality to
the original roof work. Should the Tenant fail to repair any condition in or
about the roof of the building which Tenant is required to repair pursuant
hereto, within ten days after notice from the Landlord of the condition
requiring such repairs, the Landlord may immediately make the required repairs
at the expense of the Tenant. The Tenant acknowledges that the Landlord will
make Tenant's Roof Area available to the Tenant in its then "as is" condition.
The Landlord reserves the right to require the Tenant to relocate its equipment,
if the Landlord deem such relocation reasonably necessary, including, without
limitation, any relocation needed as the result of the Landlord's construction
of additional floors on the building.
(e) The Tenant agrees that its installation of equipment on the Tenant's
Roof Area and its use and operations of such equipment will comply with all
laws, ordinances, regulations and requirements of any City, State and Federal
Governments and all subdivisions and agencies
(40)
thereof, as well as any requirements imposed by the Landlord's insurance
carrier, including, without limitation, all the laws, regulations and
requirements relating to the safety, health and welfare of employees, agents,
invitees and others who may from time to time be on the roof of the building in
connection with the installation, service, operation and repair of the Tenant's
equipment or its other obligations under the Lease. The Tenant shall be
responsible for the payment of any fees and taxes which may be imposed by any
governmental agency in connection with the installation and use of such antenna.
The Tenant has been advised that the Landlord may permit third parties to, and
may itself utilize various portions of the building's roof area for the
installation of microwave dishes, satellite communications equipment, antennae,
TV, radio and other communications equipment. The Tenant represents and warrants
to the Landlord that use and operation of any antenna installed by the Tenant
will not interfere with or in any way affect any communications or other
equipment previously installed by any other tenant in the building, and the
Tenant hereby agrees to indemnify and hold harmless the Landlord from and
against any losses, liabilities (including reasonable attorney's fees), claims,
suits or causes of action relating to or arising out of the Tenant's use of the
Roof Area or its use or operation of any antenna. The Landlord shall not be
liable to the Tenant for any interference caused by any other communications
equipment on the building's roof.
(f) The antenna shall be used by the Tenant solely for the reception of
signals to the antenna, in connection with the Tenant's business operations in
the premises and no rights to use the same shall be granted by the Tenant to
third parties. The Tenant shall not have any right or ability to transfer or
assign or sublet any right or interest it may have hereunder with respect to the
Tenant's Roof Area or the roof of the building except in connection with the
assignment of this lease or the subletting of the premises, in either case, in
accordance with the provisions of Article SEVENTEEN.
(g) The Tenant shall pay for all electricity used in connection with the
operation of the antenna in accordance with Article TEN of the lease.
(41)
IN WITNESS WHEREOF, this agreement has been signed and sealed by the
parties hereto as of the date set forth above.
THE ▇▇▇▇▇▇, CHURCH-WARDENS AND
VESTRYMEN OF TRINITY CHURCH IN THE
CITY OF NEW YORK
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇▇
----------------------------------------
▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇
By: /s/ [ILLEGIBLE]
----------------------------------------
Director of Leasing
By: /s/ [ILLEGIBLE]
----------------------------------------
Executive Vice President of Real Estate
By: /s/ [ILLEGIBLE], CFO
----------------------------------------
Finance Department
Attest: PHOTODISC, INC.
As to the Tenant:
/s/ [ILLEGIBLE] By: /s/ [ILLEGIBLE] (L.S)
---------------------------- ------------------------------------
An Authorized Officer
(42)
SCHEDULE A
RULES AND REGULATIONS
1. The Tenant shall not clean, nor require, permit or allow any window in the
Premises to be cleaned from the outside in violation of Section 202 of the New
York State Labor Law or of the Rules of the Board of Standards and Appeals, or
of any other board or body having or asserting jurisdiction.
2. All machinery shall be kept in approved settings sufficient, in the
Landlord's judgment, to absorb any shock and prevent any noise, vibration or
annoyance in the building of which the Premises are a part and, if necessary,
shall be provided with oil pans between such machinery and the floor beneath it,
sufficient to prevent the seepage of oil on or into the floors.
3. During the cold season, the windows shall be kept closed to maintain the
temperature of the Premises and to prevent any freezing thereof, or of any
equipment or appliance therein. If the building contains central
air-conditioning and ventilation, the Tenant agrees to keep all windows closed
at all times and to abide by all rules and regulations issued by the Landlord
with respect to such services. The Tenant shall draw and close the draperies or
blinds for the windows of the Premises whenever the air-conditioning system is
in operation and the position of the sun so requires.
4. All trucks, vehicles or conveyances used by the Tenant or others in the
delivery or receipt of material in the Premises or any other area in the
building shall have rubber tires and sideguards. The Tenant shall be responsible
for removing any oil deposited on the Premises from such trucks, vehicles or
conveyances.
5. The Tenant shall not alter any lock or install a new or additional lock or
bolt on any doors or windows. On termination or expiration of this lease, all
keys must be surrendered to the Landlord and in the event of the loss of any
keys furnished at the Landlord's expense, the Tenant shall pay to the Landlord
the cost thereof. If the building has a central security system, the Tenant
shall provide the Landlord with all access codes to the Premises. If the Tenant
fails to provide the Landlord with a means of access to the Premises, the
Landlord shall be relieved of all obligation, if any, to provide cleaning
services to the Premises.
6. The Landlord may exclude any persons visiting or attempting to visit the
Premises between 7 P.M. and 7 A.M. on Business Days or on non-Business Days
unless such person shall be equipped with a pass signed or approved by the
Landlord and unless such person shall sign his name and the Premises which he is
to visit on the night report. Each Tenant shall be responsible for all persons
for whom a pass shall be issued at the request of the Tenant and shall be liable
to the Landlord for all acts of such persons. The Tenant shall not have a claim
against the Landlord by reason of the Landlord excluding from the building any
person who does not present a pass. At all times, the Landlord retains the right
to prevent access to the building to all persons whose presence, in the judgment
of the Landlord, would be prejudicial to the safety, character or reputation of
the building.
7. All sanitary facilities, wash closets and plumbing fixtures shall be used
only for the purposes for which they were constructed, and no sweepings,
rubbish, rags, acids or other substances shall be deposited therein, and the
expense of any stoppage or damage resulting from the violation of this rule
shall be borne by the Tenant whose employees, agents or visitors caused it.
8. No sign or lettering shall be exhibited, inscribed, painted or affixed
outside of the Premises or on the inside of the Premises if the same can be seen
from the outside of the Premises except as may be approved in writing by the
Landlord, except that the name of the Tenant may appear on the entrance door of
the Premises. If the Tenant violates this rule, the Landlord may remove the same
without liability and the expenses so incurred by the Landlord shall be paid by
the Tenant as additional rent. The Tenant shall not allow noise to emanate from
the Premises to the street or other portions of the building. Any sign or
display which may be installed by the Tenant shall be
(i)
kept in good order and repair and in a neat and attractive condition. The
Landlord reserves the right to use the roof and outside walls surrounding the
Premises for sign purposes. The Landlord may remove any sign or signs or
displays in order to paint the Premises or any part of the building, or make any
repairs, alterations or improvements in or upon the Premises or building, or any
part thereof, provided it causes the same to be removed and replaced at the
Landlord's expense, whenever the painting, repairs, alterations or improvement
shall have been completed. Interior signs on doors shall be of a size, color and
style reasonably acceptable to the Landlord. The Landlord reserves the right,
acting reasonably, to approve the appearance and design of the elevator lobby on
each floor of the building.
9. The Landlord shall have the right to prohibit any advertising by the Tenant
which, in its reasonable judgment, tends to impair the reputation of the
building or its desirability as an office building, and upon written notice from
the Landlord, the Tenant shall refrain from or discontinue such advertising.
10. No awnings, antennae, aerials, ventilating and air-conditioning apparatus or
other projections shall be attached to the outside walls of the building. No
air-conditioning apparatus may be installed in windows of the Premises.
11. The lights, skylights, entrances, passages, courts, elevators, vestibules,
stairways, loading platforms, corridors, halls or any part of the building
intended for use in common by the Tenant with other occupants of the building
shall not be obstructed or encumbered by the Tenant or used for any other
purpose than for ingress or egress from the Premises and for delivery of
equipment in a prompt and efficient manner using elevators and passageways
designated for such delivery by the Landlord. In the event of any encumbrance or
obstruction, the Landlord may remove the material causing such encumbrance or
obstruction and cause it to be stored and charge the cost of doing so to the
Tenant. No courtyard or yard appurtenant to the Premises or the building shall
be used for parking vehicles of any kind. If the Premises are on the ground
floor of the building, the Tenant shall, at its expense, keep the sidewalk and
curb in front of the Premises clean and free from rubbish.
12. Subject to the provisions of Article FOUR of this lease, no part of the
Premises or the building shall be marked, painted, bored, drilled into, or in
any way defaced. Any drilling which is permitted by the Landlord shall be done
in accordance with the provisions of Article FOUR and shall be done during
non-Business Hours unless otherwise authorized by the Landlord in writing. No
boring, cutting or stringing of wires shall be permitted, except with the prior
written consent of the Landlord. No linoleum or other similar floor covering
shall be laid so that the same shall come in direct contact with the floor of
the Premises; and if such flooring is used, an interlining of builder's
deadening felt or other sound-attenuating materials shall be first affixed to
the floor, by a paste or other material, soluble in water. Cements and other
similar adhesive material shall not be used. Removal of any alterations,
decorations or improvements in compliance with Article FOUR of this lease shall
include the removal of all linoleum, lining and adhesive material.
13. No part of the Premises shall be used in a manner or for a purpose that is
substantially objectionable to the Landlord or to another tenant, by reason of
noise, odors, vibrations or otherwise, or which in the reasonable judgment of
the Landlord might cause structural injury to the building or interfere in any
way with other tenants or those having business in the building or create a
nuisance. Tenant shall not make, or permit to be made, any unseemly or
disturbing noises or disturb or interfere with occupants of this or neighboring
buildings or Premises or those having business with them whether by the use of
any musical instrument, radio, television set, unmusical noise, singing or in
any other way.
14. The Tenant's employees, guests and visitors shall not stand or loiter around
the lobby, hallways, stairways, elevators, front, roof or any other part of the
building used in common by the occupants thereof.
15. No load shall be placed upon any floor of the building exceeding the floor
load per square foot area which such floor was designed to carry, and all loads
shall be evenly distributed. The
(ii)
Landlord reserves the right to prescribe the weight and placement of all safes,
machinery and other personal property in the Premises so as to distribute their
weight.
16. Nothing shall be hung, shaken, thrown out of any window or doors, or down
any passages, stairways, elevators, or skylights of the building, nor shall any
of them be covered, obstructed or encumbered. The Tenant shall not use, keep or
permit to be used any foul or noxious gas or substance in the Premises. No
bicycles, vehicles or animals (other than seeing-eye dogs), fish or birds shall
be kept in the building. Smoking or carrying lighted cigars or cigarettes in the
elevators of the building is prohibited.
17. Building employees shall not perform any work or do anything outside of
their regular duties, unless under special instructions from the office of the
Landlord.
18. No peddling, soliciting or canvassing shall be permitted in the Premises or
by the Tenant's employees elsewhere in the building.
19. All deliveries to or from the Premises shall be made by means of the freight
elevators. The Landlord may prescribe, and from time to time vary, the time for
any removals or deliveries from or to the Premises. Removals or deliveries of
safes, machinery, business equipment, furniture, freight, and any other heavy or
bulky matter shall be done only on the freight elevators and through the service
entrances and corridors and shall only be done upon written authorization of the
Landlord and only in such manner and by such persons as may be acceptable to the
Landlord, and the Landlord may require any further assurances or agreements or
indemnity from the Tenant to the movers to that effect. If any safe, machinery,
equipment, bulky matter or fixtures requires special handling, all work in
connection therewith shall comply with the Administrative Code of the City of
New York and all other laws and regulations applicable thereto. The Landlord
reserves the right to inspect all freight to be brought into the building and to
exclude from the building all freight which violates any of these Rules and
Regulations or the lease of which these Rules and Regulations are a part.
20. The Tenant shall not permit its servants, employees, agents, visitors or
licensees, at any time to bring or keep upon the Premises any inflammable,
combustible, explosive or hazardous fluid, material, chemical or substance or
cause or permit any unusual or objectionable odors (from cooking or otherwise)
to be produced upon or emanate from the Premises.
21. No Tenant shall operate any elevator in the building, except for automatic
self-service elevators.
22. The Tenant shall not use any method of heating or air-conditioning other
than that supplied or approved by the Landlord.
23. If the Premises consist of basement space, or if any property of the Tenant
is stored in the basement portion of the building, all such property shall, at
the Tenant's own cost and expense, be placed entirely on skids or platforms,
which will raise such property at least six inches from the floor. The Landlord
shall have no liability for any materials stored in the basement.
24. No vending machine shall be installed or permitted to remain in the Premises
unless the Landlord shall first have given its specific written authorization
for the installation of each such machine. If any vending machine dispenses any
beverages or other liquids or refrigerates, it shall have a waterproof pan
located thereunder, connected to a drain.
25. The Tenant shall not attach or install curtains, draperies, blinds, shades
or screens on any window in the Premises without the Landlord's prior written
consent, not to be unreasonably withheld or delayed.
26. The Tenant shall keep the entrance door to the Premises closed at all times.
27. No space in the building shall be used for manufacturing, for the storage of
merchandise, or for the sale or merchandise, goods or property of any kind at
auction or otherwise.
(iii)
28. The Tenant shall have the right to its proportionate share of listings in
the building's directory, but in no event less than three listings.
29. The Landlord and its agents reserve the right to inspect all packages,
boxes, bags, handbags, attache, cases, suitcases, and other items carried into
the building, and to refuse entry into the building to any person who either
refuses to cooperate with such inspection or who is carrying any object which
may be dangerous to persons or property. In addition, the Landlord reserves the
right to implement such further measures designed to ensure safety of the
building and the persons and property located therein as the Landlord shall deem
necessary or desirable.
(iv)
SCHEDULE B
CLEANING SPECIFICATIONS
GENERAL CLEANING: Office and Reception Areas, Five (5) nights per week,
Monday through Friday (Business Days only)
1. Carpeting in the office area and elevator lobby will be thoroughly
power-vacuumed one night per week, and carpet-swept four (4) nights per
week.
2. Hard floor surfaces will be swept and dust-mopped with a chemically treated
mop for dust control,
3. All furniture such as tables, chairs, desks, cabinets and allied
attachments will be dusted.
4. Window ▇▇▇▇▇ will be dusted.
5. Waste paper baskets will be emptied and trash removed to a designated
location on the premises nightly.
6. Small plastic liners will be installed one (1) time per week or as
necessary.
7. Formica and glass desk tops will be damp dusted.
8. Glass entrance doors and allied partition glass will be spot-cleaned for
finger marks and smudges.
GENERAL CLEANING: Industrial and/or Production areas. Five nights per week,
Monday through Friday (Business Days only)
1. Waster receptacles will be emptied and trash removed to a designated
location on the premises.
2. Large plastic liners will be installed.
3. All hard surface flooring will be thoroughly swept.
4. All hard surface flooring will be wet-mopped one time per month.
LAVATORIES: Five (5) nights per week, Monday through Friday (Business Days
only)
1. Porcelain fixtures will be scoured clean.
2. Both sides of toilet seats will be washed with a mild germicidal solution.
3. Bright work will be dry-polished.
4. Receptacles will be emptied and cleaned.
5. Mirrors will be cleaned.
6. Partitions will be wiped down as necessary.
7. Shelves will be cleaned.
8. Floors will be washed with a mild non-injurious disinfectant.
9. Paper towels, toilet tissue and liquid hand soap will be installed.
(v)
EXHIBIT A
FLOOR PLANS
(vi)
[GRAPHIC APPEARS HERE]
All area measurements are approximate. All conditions and dimensions are to be
verified on site.
NOTES
PLEASE INITIAL
/s/ [ILLEGIBLE]
EXHIBIT "A"
▇▇▇
▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇▇ ▇▇▇▇
Date:
03/28/00 No Scale
[LOGO OF TRINITY REAL ESTATE]
PARISH OF TRINITY CHURCH
▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇, ▇▇ ▇▇▇▇▇
(▇▇▇) ▇▇▇-▇▇▇▇
EXHIBIT B
CERTIFICATE OF OCCUPANCY
(vii)
DEPARTMENT ▇▇ ▇▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇ ▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇
HVC CERTIFICATE OF OCCUPANCY No. 12157 193 ?27
Supersedes Certificate of Occupancy No.
To the owner or owners of the building: New York Feb. 5, 1927.
THIS CERTIFIES that the building located on ▇▇▇▇▇ ▇▇▇, ▇▇▇ ▇▇-▇▇
known as 182 to ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇-▇▇-▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇. NEC under a permit,
Application No. 175 N.B. of 1926, conforms to the approved plans and
specifications accompanying said permit and any approved amendments thereto, and
to the requirements of the building code and all other laws and ordinances and
to the rules and regulations of the board of standards and appeals, applicable
to a building of its class and kind, except that in the case of a building
heretofore existing and for which no previous certificate of occupancy has been
issued and which has not been altered or converted since March 14, 1916, to a
use that changed its classification as defined in the building code, this
certificate confirms and continues the existing uses to which the building has
been put; and
CERTIFIES FURTHER that the building is of fireproof construction within the
meaning of the building code and may be used and occupied as a business building
as hereinafter qualified, in ?? unrestricted district under the building zone
resolution, subject to all the privileges, requirements, limitations and
conditions prescribed by law or as hereinafter specified.
PERSONS ACCOMMODATED
LIVE LOADS ---------------------------
STORY Lbs. per Sq.Ft. MALE FEMALE TOTAL USE
--------------------------------------------------------------------------------
Cellar 4 Storage
1st Story 200 55 55 110 Stores and factory
2nd to 12th 200 on 210 on
Story each 130 80 each Factory
This certificate is issued to Green Terminal Building Corp.
▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇, for the owner or
owners.
[SEAL]
(Page 1)
EXHIBIT C
WORK LETTER
It is agreed that, except as otherwise indicated, the following work is to
be done to the Premises by the Landlord at the Landlord's expense:
The Landlord shall provide a total connected load of up to 8 ▇▇▇▇▇ per
(rentable) square foot (exclusive of electricity required for base building
systems), of 3 phase 4 wire electric power with full neutrals. The disconnect
switch, submeter, and distribution of electricity within the Premises shall be
at the Tenant's expense.
LANDLORD'S INITIAL WORK
Tenant shall take the entire Premises "as-is," except that Landlord shall
substantially complete the following work on or before thirty (30) days
following the Commencement Date:
1. Landlord shall deliver the space demolished, demised and broom clean.
Landlord shall strip all floors of existing carpeting (if any) and shall patch
all major holes or cracks (if any).
2. Landlord shall provide ACP-5 certificates relative to asbestos
compliance.
3. Tenant shall install all speakers, strobes, alarms and panels as
required by Local Law #58 and connect same to a central station. Upon
installation of a Class "E" fire alarm and communication system by the Landlord,
Tenant shall connect its speakers, strobes, alarms and panels, along with any
necessary interfacing devices, thereto.
4. Landlord shall deliver the existing sprinkler system in good working
order.
LANDLORD'S ADDITIONAL WORK
Landlord shall perform the following additional work contemporaneously with
Tenant's construction at the Premises:
1. Landlord shall renovate and recaulk existing window frames as necessary
and shall replace any cracked, broken or non-transparent window panes throughout
the entire premises.
2. Landlord shall reimburse Tenant up to an aggregate amount of $275,000.00
toward the cost of (a) supplying and installing HVAC equipment in the ▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇ and ▇▇-▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ premises, including power and control wiring and
(b) renovating the Mens and Ladies bathrooms on the 2nd floor of each building,
which Tenant shall renovate in accordance with building standards, and in
compliance with NYC Local Law #58. Landlord shall make such payment to Tenant
within thirty days of receiving Tenant's request for same, accompanied by a
certification by an officer of Tenant with respect to the actual work completed,
together with copies of paid invoices and waivers of liens from Tenant's
contractors and subcontractors.
It is stipulated and agreed that the foregoing constitutes the work to be
done by the Landlord referred to in the lease to which this Work Letter is
attached and all the work to be done by the Landlord in the Premises, except as
otherwise expressly provided in such lease.
It is further stipulated and agreed that the aforesaid work shall be
commenced by the Landlord as soon as possible after full execution of the lease
and the payment by the Tenant of the first installment of rent and the
performance by the Tenant of any other obligations to be performed by the Tenant
at the time of the signing of the lease and shall be completed with reasonable
diligence, subject to delays of the sort in Article THIRTY-FOUR, provided that
the Landlord shall not be required to do the work on days or hours other than
usual working days and hours in the trades in question.
(viii)
Subject to the foregoing provisions the Landlord reserves the right, after
according reasonable consideration to the Tenant's wishes in the matter, to make
all decisions as to the time or times when, the order and style in which, said
work is to be done, and the labor or materials to be employed therefor. The work
shall be done, unless the Landlord otherwise directs, during the usual working
hours observed by the trades in question. It is stipulated and agreed that in
case the Landlord is prevented from commencing, prosecuting or completing said
work, due to the Landlord's inability to obtain or difficulty in obtaining the
labor or materials necessary therefor, or due to any governmental requirements
or regulations relating to the priority or national defense requirements, or due
to any other cause beyond the Landlord's control, the Landlord shall not be
liable to the Tenant for damages resulting therefrom, nor shall the Tenant be
entitled to any abatement or reduction of rent by reason thereof, nor shall the
same give rise to a claim in the Tenant's favor that such failure constitutes
actual, constructive, total or partial eviction from the Premises.
THE ▇▇▇▇▇▇, CHURCH-WARDENS AND VESTRYMEN OF
TRINITY CHURCH IN THE CITY OF NEW YORK, Landlord
By: /s/ [ILLEGIBLE]
----------------------------------------------
Director of Leasing
PHOTODISC, INC.
By: /s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇
----------------------------------------------
Name: ▇▇▇▇ ▇▇▇▇▇▇▇▇
Title: V.P.
(ix)
SCHEDULE 1
OPERATING EXPENSE PAYMENT
Twelve-Month Period Operating Expense
Commencing April 1 Payment
------------------- -----------------
2000 $ 0
2001 $ 15,776.00
2002 $ 32,024.00
2003 $ 48,761.00
2004 $ 65,999.00
2005 $ 83,755.00
2006 $ 102,043.00
2007 $ 120,880.00
2008 $ 142,034.00
2009 $ 163,824.00
2010 $ 186,267.00
2011 $ 209,383.00
2012 $ 233,193.00
2013 $ 257,717.00
2014 $ 282,977.00
(x)