Exhibit 10.1
AGREEMENT OF LEASE made as of this day of April 13, 2000, between
500-512 SEVENTH AVENUE LIMITED PARTNERSHIP, a Delaware limited partnership, with
its office at c/o Newmark & Company Real Estate, Inc., 125 Park Avenue, New
York, New York, 10017 (hereinafter referred to as "Landlord") and THCG, INC., a
Utah corporation, with its office at 650 Madison Avenue, New York, New York
10022 (hereinafter referred to as "Tenant").
W I T N E S S E T H :
Landlord hereby leases and Tenant hereby hires from Landlord, in
the building (hereinafter referred to as the "Building") known as 512 Seventh
Avenue, New York, New York 10016, the following space: the entire seventeenth
(17th) (as shown hatched) floor and a portion of the sixteenth (16th) floor (as
shown hatched) on the plans annexed hereto as Exhibit A (which space is
hereinafter referred to as "the demised premises"); for a term of approximately
ten (10) years, to commence on the date hereof (hereinafter referred to as the
"Commencement Date"), and to end on September 30, 2010 (such date on which the
term of this Lease expires is hereinafter referred to as the "Expiration Date")
or on such date as such term shall sooner cease and terminate as hereinafter
provided. The Building is located on the land (herein called the "Land")
described on Exhibit B annexed hereto).
The parties hereto, for themselves, their heirs, distributees,
executors, administrators, legal representatives, trustees, successors and
assigns, hereby covenant as follows:
ARTICLE 1
RENT
1.01 Tenant shall pay to Landlord a fixed annual rent
(hereinafter referred to as "fixed annual rent") at the annual rate of:
(a) Eight Hundred Eighty Nine Thousand Eight Hundred Forty
Dollars ($889,840.00) per annum, commencing on the Rent Commencement Date until
the last day of the month preceding the month in which occurs the fifth (5th)
anniversary of the Rent Commencement Date; and
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(b) Nine Hundred Thirty Four Thousand Three Hundred Thirty
Two Dollars ($934,332.00) per annum, commencing on the first day of the month in
which occurs the fifth (5th) anniversary of the Rent Commencement Date and
ending on the Expiration Date.
Tenant shall pay additional fixed annual rent with respect to its
lease of the Added Space pursuant to Article 47 of this Lease
Tenant agrees to pay the fixed annual rent in lawful money of the
United States of America, in equal monthly installments in advance on the first
day of each calendar month during said term, at the office of Landlord or such
other place in the United States of America as Landlord may designate, without
any setoff or deduction whatsoever, except such deduction as may be occasioned
by the occurrence of any event permitting or requiring a deduction from or
abatement of rent as specifically set forth in Articles 10 and 14 hereof. Should
the obligation to pay fixed annual rent commence on any day other than on the
first day of a month, then the fixed annual rent for such month shall be
prorated on a per diem basis.
The first month's installment of fixed annual rent due under this
Lease shall be paid by Tenant upon the execution of this Lease.
1.02 Tenant shall pay the fixed annual rent and additional rent
as above and as hereinafter provided, by good and sufficient check (subject to
collection) drawn on a New York City bank which is a member of the New York
Clearinghouse Association or a successor thereto. All sums other than fixed
annual rent payable by Tenant hereunder shall be deemed additional rent (for
default in the payment of which Landlord shall have the same remedies as for a
default in the payment of fixed annual rent), and shall be payable twenty (20)
days after demand, unless other payment dates are hereinafter provided.
1.03 If Tenant shall fail to pay when due any installment of
fixed annual rent or any payment of additional rent for a period of five (5)
days after such installment or payment shall have become due, Tenant shall pay
interest thereon at the Interest Rate (as such term is defined in Article 22
hereof), from the date when such installment or payment shall have become due to
the date of the payment thereof, and such interest shall be deemed additional
rent.
1.04 If any of the fixed annual rent or additional rent payable
under the terms and provisions of this Lease shall be or become uncollectible,
reduced or
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required to be refunded because of any Legal Requirement (as such term is
defined in Article 22 hereof), Tenant shall enter into such agreement(s) and
take such other steps (without additional expense to Tenant) as Landlord may
request and as may be legally permissible to permit Landlord to collect the
maximum rents which from time to time during the continuance of such legal rent
restriction may be legally permissible (and not in excess of the amounts
reserved therefor under this Lease). Upon the termination of such legal rent
restriction, (a) the rents shall become and thereafter be payable in accordance
with the amounts reserved herein for the periods following such termination and
(b) Tenant shall pay to Landlord, to the maximum extent legally permissible, an
amount equal to (i) the rents which would have been paid pursuant to this Lease
but for such legal rent restriction less (ii) the rents paid by Tenant during
the period such legal rent restriction was in effect.
1.05 (a) Notwithstanding any language to the contrary contained
herein, the fixed annual rent payable hereunder shall be abated during the
period commencing on the Commencement Date and ending on September 30, 2000 (the
date following the expiration of such abatement period is herein called the
"Rent Commencement Date").
(b) If Landlord shall not have substantially completed the
portions of Landlord's Work in the demised premises set forth in clauses (a),
(b), (c) and (e) of Section 2.01 herein by June 15, 2000 (the "Landlord's Work
Completion Date") and such failure directly results in a delay in the completion
of Tenant's Work (as hereinafter defined), then the Rent Commencement Date shall
be extended one (1) day for each day thereafter that Landlord's Work is not so
substantially completed (except for minor or insubstantial details of
construction, mechanical adjustment, decoration, or other punch-list items which
remain to be performed). Notwithstanding any language to the contrary contained
in this Lease, the Landlord's Work Completion Date shall be extended by one day
for each day that Landlord is prevented from performing or completing such work
by reason of a Tenant Delay. A "Tenant Delay" shall mean: (a) delays in
submitting the final plan (as defined in Section 50.02 herein) with respect to
Tenant's Work, or in approving any drawings or specifications, giving
authorizations or supplying information; or (b) additional time needed by
Landlord, as a result of Tenant requesting Landlord to make a change or addition
to Landlord's Work or change in the final plan.
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ARTICLE 2
PREPARATION OF THE DEMISED PREMISES
2.01 Tenant has examined the demised premises and agrees to
accept the same in their condition and state of repair existing as of the date
hereof subject to (i) latent defects in the structure of the Building, (ii)
Landlord's performance of its work obligations under this Section 2.01 and (iii)
normal wear and tear and to the removal therefrom of the property of the
existing tenant or occupant thereof, if any, and understands and agrees that
Landlord shall not be required to perform any work, supply any materials or
incur any expense to prepare the demised premises for Tenant's occupancy, except
that Landlord, at Landlord's sole cost and expense, shall:
(a) provide to Tenant a reasonable number of connection
points to the Building's fire safety system (not to exceed eight (8) connection
points) to which it shall connect its subsystem (consisting of smoke detectors
and other life safety and security devices) in the demised premises to the
Building's Class E System, as required to comply with applicable laws including,
without limitation, New York City Local Law; provided however Tenant shall
solely be responsible for the cost of making such connections;
(b) demolish the demised premises in accordance with
Tenants's demolition plan prior to the commencement of performance of Tenant's
Work (as that term is hereinafter defined) provided that Landlord approves such
demolition plan, which approval shall not be unreasonably withheld;
(c) remove asbestos in the demised premises in accordance
with applicable legal requirements to facilitate Tenant's Work in and to the
demised premises, except for any vinyl asbestos tile ("VAT")which shall be
Tenant's obligation to remove or encapsulate at Tenant's expense;
(d) remove all existing exterior windows in the demised
premises; and supply and install new Building Standard (as defined herein)
exterior windows throughout the demised premises; and
(e) deliver all existing radiators and the existing
sprinkler loop within the demised premises in proper working order.
2.02 Landlord shall use all reasonable efforts to complete items
(a), (b), (c) and (e) of Landlord's Work prior to June 15, 2000 and item (d) by
August 1, 2000.
2.03 If the Commencement Date is other than the specific date
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hereinabove set forth then Tenant shall at Landlord's request, execute a written
agreement confirming the Commencement Date. Any failure of the parties to
execute such written agreement shall not affect the validity of the Commencement
Date as fixed and determined by Landlord as aforesaid.
ARTICLE 3
ADJUSTMENTS OF RENT
3.01 For the purposes of this Article 3, the following
definitions shall apply:
(a) The term "Base Tax" shall mean the Taxes for the Tax
Year commencing July 1, 2000, and ending on June 30, 2001 by (ii) the real
property tax rate for such Tax Year.
(b) The term "Tenant's Proportionate Share" shall be
deemed to mean 4.35% percent.
(c) The term "Taxes" shall mean (i) all real estate taxes,
assessments, sewer rents and water charges, governmental levies, municipal
taxes, county taxes or any other governmental charge, general or special,
ordinary or extraordinary, unforeseen as well as foreseen, of any kind or nature
whatsoever, which are or may be assessed levied or imposed upon all or any part
of the Land, the Building and the sidewalks, plazas or streets in front of or
adjacent thereto, including any tax, excise or fee measured by or payable with
respect to any rent, and levied against Landlord and/or the Land and/or
Building, under the laws of the United States, the State of New York, or any
political subdivision thereof, or by the City of New York or any political
subdivision thereof and any charge imposed by any business improvement district,
and (ii) any expenses incurred by Landlord in contesting any of the foregoing
set forth in clause (i) of this sentence or the assessed valuations of all or
any part of the Land and Building, etc. or collecting any refund, not to exceed
the savings incurred. If, due to a future change in the method of taxation or in
the taxing authority, a new or additional real estate tax, or a franchise,
income, transit, profit or other tax or governmental imposition, however
designated, shall be levied against Landlord, and/or the Land and/or Building,
in addition to, or in substitution in whole or in part for any tax which would
constitute "Taxes", or in lieu of additional Taxes, such tax or imposition shall
be deemed for the purposes hereof to be included within the term "Taxes". Except
as set forth in the immediately preceding sentence, Taxes shall not include
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sales, transfer, income, franchise, estate or inheritance taxes or late fees or
interest charges imposed upon Landlord in connection with late payment thereof
by Landlord.
(d) The term "Tax Year" shall mean each period of twelve
(12) months, commencing on the first day of July of each such period, in which
occurs any part of the term of this Lease or such other period of twelve months
occurring during the term of this Lease as hereafter may be duly adopted as the
fiscal year for real estate tax purposes of the City of New York.
(e) The term "Operating Year" shall mean the calendar year
2000 and each succeeding calendar year thereafter during the term of this Lease.
(f) The term "Wage Rate" with respect to any Operating
Year shall mean the regular average hourly wage rate (excluding fringe benefits)
required to be paid to Porters in Class A Office Buildings pursuant to any
agreement between the Realty Advisory Board on Labor Relations, Incorporated or
any successor thereto (hereinafter referred to as "R.A.B.") and Local 32B/32J of
the Building Service Employees International Union AFL-CIO, or any successor
thereto (hereinafter referred to as "Local 32B") in effect during such Operating
Year, provided that if any such agreement shall require Porters to be regularly
employed on days or during hours when overtime or other premium pay rates are in
effect, then the term "regular average hourly wage rate" shall mean the regular
average hourly wage rate for the hours in a calendar week which Porters are
required to be regularly employed (whether or not actually at work in the
Building), e.g., if, for example, as of January 1, 2000, an agreement between
R.A.B. and Local 32B would require the regular employment of Porters for 40
hours during a calendar week at a regular average hourly wage of $4.00 for the
first 30 hours and at an overtime hourly average wage of $5.00 for the remaining
10 hours, then the regular average hourly wage rate under this subsection, as of
January 1, 2000, would be the sum arrived at by dividing the total weekly
average wages of $170.00 by the total number of required hours of employment
which is 40 and resulting in a regular average hourly wage rate of $4.25. The
computation of the regular average hourly wage rate shall be on the same basis
whether based on an hourly or other pay scale but predicated on the number of
hours in such respective work weeks, whether paid by Landlord or any independent
contractor. If there is no such agreement in effect as of the date of any
Escalation Statement on which such regular average hourly wage rate is
determinable, the computations shall be made on the basis of the regular average
hourly wage rate being paid by Landlord or by the contractor performing porter
or cleaning services for Landlord as of the date of such Escalation Statement
and appropriate retroactive adjustments shall be
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made when the regular average hourly wage rate paid as of such Escalation
Statement is finally determined. If length of service shall be a factor in
determining any element of wages it shall be conclusively presumed that all
employees have at least three years of service. The Wage Rate is intended to be
an index in the nature of a cost of living index, and is not intended to reflect
the actual costs of wages or expenses for the Building.
(g) The term "Porters" shall mean that classification of
employee engaged in the general maintenance and operation of Class A Office
Buildings most nearly comparable to the classification now applicable to porters
in the current agreements between R.A.B. and Local 32B/32J (which classification
is presently termed "others" in said agreement).
(h) The term "Class A Office Buildings" shall mean office
buildings in the same class or category as the Building under any building
operating agreement between R.A.B. and Local 32B/32J, regardless of the
designation given to such office buildings in any such agreement.
(i) The term "Base Wage Rate" shall mean the Wage Rate in
effect on January 1, 2000.
(j) The term "Escalation Statement" shall mean a statement
setting forth the amount payable by Tenant for a specified Tax Year or Operating
Year (as the case may be) pursuant to this Article 3.
(k) The term "Wage Rate Multiple" shall mean 22,246.
3.02 If the Wage Rate for any Operating Year shall be greater
than the Base Wage Rate, then Tenant shall in the case of such an increase pay
to Landlord as additional rent for the demised premises for such Operating Year
an amount equal to the product obtained by multiplying one hundred (100%)
percent of the difference between the Wage Rate for such Operating Year and the
Base Wage Rate, by the Wage Rate Multiple.
3.03 A. Tenant shall pay as additional rent for each Tax Year a
sum (hereinafter referred to as "Tenant's Tax Payment") equal to Tenant's
Proportionate Share of the amount by which the Taxes for such Tax Year exceed
the Base Tax. Tenant's Tax Payment for each Tax Year shall be due and payable in
two (2) equal installments, in advance, (i.e., on the first day of each June and
December during each Tax Year) based upon the Escalation Statement furnished
prior to the commencement of such Tax Year, until such time as a new Escalation
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Statement for a subsequent Tax Year shall become effective. If an Escalation
Statement is furnished to Tenant after the commencement of a Tax Year in respect
of which such Escalation Statement is rendered, Tenant shall, within fifteen
(15) days thereafter, pay to Landlord an amount equal to the amount of any
underpayment of Tenant's Tax Payment with respect to such Tax Year and, in the
event of an overpayment, Landlord shall permit Tenant to credit the amount of
Tenant's overpayment against subsequent payments of fixed annual rent and
additional rent due from Tenant to Landlord under this Lease. If the amount of
the overpayment exceeds the amount of rent payments scheduled to come due under
this Lease, Landlord shall pay to Tenant the amount of such excess within ninety
(90) days after the Escalation Statement is rendered. If there shall be any
increase in Taxes for any Tax Year, whether during or after such Tax Year,
Landlord shall furnish a revised Escalation Statement for such Tax Year, and
Tenant's Tax Payment for such Tax Year shall be adjusted and paid in the same
manner as provided in the preceding sentence. If during the term of this Lease,
Taxes are required to be paid (either to the appropriate taxing authorities or
as tax escrow payments to a superior mortgagee) in full or in monthly,
quarterly, or other installments, on any other date or dates than as presently
required, then at Landlord's option, Tenant's Tax Payments shall be
correspondingly accelerated or revised so that said Tenant's Tax Payments are
due at least thirty (30) days prior to the date payments are due to the taxing
authorities or the superior mortgagee. The benefit of any discount for any early
payment or prepayment of Taxes shall accrue solely to the benefit of Landlord
and such discount shall not be subtracted from Taxes.
B. If the real estate tax fiscal year of The City of New
York shall be changed during the term of this Lease, any Taxes for such fiscal
year, a part of which is included within a particular Tax Year and a part of
which is not so included, shall be apportioned on the basis of the number of
days in such fiscal year included in the particular Tax Year for the purpose of
making the computations under this Section 3.03.
C. If Landlord shall receive a refund of Taxes for any Tax
Year, Landlord shall permit Tenant to credit against subsequent payments of
fixed annual rent and additional rent due from Tenant to Landlord under this
Lease Tenant's Proportionate Share of the refund but not to exceed Tenant's Tax
Payment paid for such Tax Year. If the amount of the credit due to Tenant under
this provision exceeds the amount of rent payments scheduled to come due under
this Lease, Landlord shall pay to Tenant the amount of such excess within ninety
(90) days after the date on which Landlord receives the refund.
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D. If the Base Tax is reduced as a result of a certiorari
proceeding or otherwise Landlord shall adjust the amounts previously paid by
Tenant pursuant to the provisions of this Section 3.03 and Tenant shall pay the
amount of said adjustment within thirty (30) days after demand setting forth the
amount of said adjustment.
3.04 Tenant shall pay to Landlord upon demand, as additional
rent, any occupancy tax or rent tax now in effect or hereafter enacted, if
payable by Landlord in the first instance or hereafter required to be paid by
Landlord.
3.05 Any such adjustment payable by reason of the provisions of
Section 3.02 shall commence as of the first day of the relevant Operating Year
and, after Landlord shall furnish Tenant with an Escalation Statement relating
to such Operating Year, all monthly installments of rental shall reflect
one-twelfth (1/12) of the annual amount of such adjustment until a new
adjustment becomes effective pursuant to the provisions of this Article 3,
provided, however, that if said Escalation Statement is furnished to Tenant
after the commencement of such Operating Year, there shall be promptly paid by
Tenant to Landlord, an amount equal to the portion of such adjustment allocable
to the part of such Operating Year which shall have elapsed prior to the first
day of the calendar month next succeeding the calendar month in which said
Escalation Statement is furnished to Tenant.
3.06 In the event that the Commencement Date shall be other than
the first day of a Tax Year or an Operating Year or the date of the expiration
or other termination of this Lease shall be a day other than the last day of a
Tax Year or an Operating Year, then, in such event, in applying the provisions
of this Article 3 with respect to any Tax Year or Operating Year in which such
event shall have occurred, appropriate adjustments shall be made to reflect the
occurrence of such event on a basis consistent with the principles underlying
the provisions of this Article 3 taking into consideration the portion of such
Tax Year or Operating Year which shall have elapsed after the term hereof
commences in the case of the Commencement Date, and prior to the date of such
expiration or termination in the case of the Expiration Date or other
termination.
3.07 Payments shall be made pursuant to this Article 3
notwithstanding the fact that an Escalation Statement is furnished to Tenant
after the expiration of the term of this Lease; provided that if Landlord shall
fail to furnish an Escalation Statement with respect to any Escalation Year
within three (3) years following the end of such year, then Landlord shall be
deemed to have irrevocably waived its right to furnish such Escalation
Statement.
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3.08 In no event shall the fixed annual rent ever be reduced by
operation of this Article 3 and the rights and obligations of Landlord and
Tenant under the provisions of this Article 3 with respect to any additional
rent shall survive the termination of this Lease.
3.09 Landlord's failure to render an Escalation Statement with
respect to any Tax Year or Operating Year, respectively, shall not prejudice
Landlord's right to thereafter render an Escalation Statement with respect
thereto or with respect to any subsequent Tax Year or Operating Year. Tenant's
obligation to pay escalation for any Tax or Operating Year during the term of
this Lease shall survive for three (3) years after the expiration or earlier
termination of this Lease.
3.10 Each Escalation Statement shall be conclusive and binding
upon Tenant unless within ninety (90) days after receipt of such Escalation
Statement Tenant shall notify Landlord that it disputes the correctness of such
Escalation Statement, specifying the particular respects in which such
Escalation Statement is claimed to be incorrect. Any dispute relating to any
Escalation Statement not resolved within ninety (90) days after the giving of
such notice by Tenant may be submitted to arbitration by either party pursuant
to Article 38 hereof. Pending the determination of such dispute, Tenant shall
pay additional rent in accordance with the Escalation Statement that Tenant is
disputing, without prejudice to Tenant's position. If the dispute shall be
determined in Tenant's favor, Landlord shall forthwith pay to Tenant the amount
of Tenant's overpayment of rents resulting from compliance with Landlord's
Escalation Statement.
ARTICLE 4
ELECTRICITY
4.01 Tenant agrees that Landlord shall furnish electricity to
Tenant on a "submetering" basis. Landlord shall install any submeters required
in Landlord's reasonable judgment in the demised premises at Tenant's sole cost
and expense. Electricity and electric service, as used herein, shall mean any
element affecting the generation, transmission, and/or distribution or
redistribution of electricity, including, but not limited to, services which
facilitate the distribution of service.
4.02 Tenant covenants and agrees to purchase electricity from
Landlord or Landlord's designated agent at charges, terms and rates, including,
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without limitation, fuel adjustments and taxes, equal to those specified in the
Con Edison SC#4-I rate schedule effective on the date Landlord first provides
electricity to the demised premises on a submetering basis (the "effective"
date), or any successor rate schedule or service classification, plus ten
percent (10%) for transmission line loss and other redistribution costs. Where
more than one meter measures the service of Tenant in the Building, the service
rendered through each meter shall be aggregated and billed in accordance with
the rates herein. Bills therefore shall be rendered at such times as Landlord
may elect and the amount, as computed from a meter, shall be deemed to be, and
be paid as, Additional Charges. If any tax is imposed upon Landlord's receipt
from the sale or resale of electrical energy service to Tenant by any Federal,
State or Municipal authority, Tenant covenants and agrees that where permitted
by law, Tenant's pro-rata share of such taxes shall be passed on to and included
in the amount of, and paid by, Tenant to Landlord.
4.03 If all or part of the submetering additional rent payable in
accordance with this Article 4 becomes uncollectible or reduced or refunded by
virtue of any law, order or regulation, the parties agrees that, at Landlord's
option, in lieu of all submetering Additional Charges, and in consideration of
Tenant's use of the Building's electrical distribution system and receipt of
redistributed electricity and payment by Landlord of consultant's fees and other
redistribution costs, the fixed annual rent to be paid under this Lease shall be
increased by an "alternative charge" which shall be a sum equal to $3.00 per
year per rentable square foot of the demised premises, changed in the same
percentage as any increases in the cost to Landlord for electricity for the
entire Building subsequent to January 1, 2000 because of electric rate or
service classification or market price changes.
4.04 Unless due to the negligence or willful misconduct of
Landlord or its agents or employees, Landlord shall not be liable for any loss
or damage or expense which Tenant may sustain or incur if either the quantity or
character of electric service is changed or is no longer available or suitable
for Tenant's requirements. Tenant agrees not to connect any additional
electrical equipment to the Building electric distribution system, other than
lamps and small office machines and personal computers which consume comparable
amounts of electricity, without Landlord's prior written consent, which consent
shall not be unreasonably withheld. Any riser or risers to supply Tenant's
electrical requirements, upon written request of Tenant, will be installed by
Landlord, at the sole cost and expense of Tenant, if, in Landlord's sole
judgment, the same are necessary and will not cause permanent damage or injury
to the Building or demised premises or cause or create a dangerous or hazardous
condition or entail excessive or unreasonable alterations, repairs or expenses
or otherwise interfere
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with or disturb other tenants or occupants of the Building except to a de
minimis extent. In addition to the installation of such riser or risers,
Landlord will also at the sole cost and expense of Tenant, install all other
equipment proper and necessary in connection therewith subject to the aforesaid
terms and conditions. The parties acknowledge that they understand that it is
anticipated that electric rates, charges, etc., may be changed by virtue of
time-of-day rates or other methods of billing, electricity purchases and the
redistribution thereof, and that the references in the foregoing paragraphs to
changes in methods of or rules on billing are intended to include any such
changes. Anything hereinabove to the contrary notwithstanding, in no event is
the submetering additional rent or any "alternative charge", to be less than an
amount equal to the total of Landlord's payment to public utilities and/or other
providers for the electricity consumed by Tenant (and any taxes thereon or on
redistribution of same) plus ten percent (10%) for transmission line loss and
other redistribution costs. The Landlord reserves the right to terminate the
furnishing of electricity upon thirty (30) days' written notice to Tenant, in
which event the Tenant may make application direction to the public utility
and/or other providers for the Tenant's entire separate supply of electric
current and Landlord shall permit its wires and conduits, to the extent
available and safely capable, to be used for such purpose, but only to the
extent of Tenant's then authorized load. Any meters, risers, or other equipment
or connections necessary to furnish electricity on a submetering basis or to
enable Tenant to obtain electric current directly from such utility and/or other
providers shall be installed at Tenant's sole cost and expense. Only rigid
conduit or electrical metal tubing (EMT) will be allowed. The Landlord, upon the
expiration of the aforesaid thirty (30) days' written notice to Tenant may
discontinue furnishing the electric current but this Lease shall otherwise
remain in full force and effect; provided, however, if Tenant shall be using due
diligence to obtain a direct supply of electricity from the public utility
company, such thirty (30) day period shall be extended until Tenant shall be
receiving such direct service.
4.05 Landlord shall provide six (6) watts per rentable square
foot connected load (exclusive of the air cooled packaged air conditioning units
serving the demised premises) to a disconnect switch in the demised premises in
a location to be designated by Landlord on each floor comprising the demised
premises. Tenant's use of electric energy in the demised premises shall not at
any time exceed the capacity of any of the electrical conductors and equipment
in or otherwise serving the demised premises. In order to insure that such
capacity is not exceeded and to avert possible adverse effect upon the
Building's distribution of electricity via the Building's electric system,
Tenant shall not, without Landlord's prior consent in each instance (which
consent shall not be unreasonably withheld or delayed), connect any fixtures,
appliances or equipment (other than normal
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business machines and personal computers, which do not materially increase
Tenant's electrical consumption) to the Building's electric system or make any
alterations or additions to the electric system of the demised premises existing
on the Commencement Date. Landlord shall make electrical energy available at a
level sufficient to accommodate a connected load of six (6) watts per rentable
square foot of the demised premises; provided, however, such electrical energy
shall be terminated at a disconnect switch within an electrical closet located
within the demised premises and designated by Landlord. Landlord shall also make
electrical energy available at a level sufficient to accommodate the air cooled
packaged air conditioning units serving the demised premises to be installed by
Tenant in accordance with Article 50 below.
4.06 At Landlord's option, Tenant shall purchase from Landlord or
Landlord's agent all lighting tubes, lamps, bulbs and ballasts used in the
demised premises and Tenant shall pay Landlord's reasonable charges for
providing and installing same, on demand, as additional rent.
4.07 In no event shall the fixed annual rent under this Lease be
reduced below the amount set forth in Section 1.01 hereof by virtue of this
Article 4.
ARTICLE 5
USE
5.01 The demised premises shall be used solely as and for
administrative and executive offices by Tenant and other permitted occupants
thereof (as hereinafter provided), and for no other purposes.
5.02 Tenant shall not use or permit the use of the demised
premises or any part thereof in any way which would violate any of the
covenants, agreements, terms, provisions and conditions of this Lease or for any
unlawful purposes or in any unlawful manner or in violation of the Certificate
of Occupancy for the demised premises or the Building, and Tenant shall not
suffer or permit the demised premises or any part thereof to be used in any
manner or anything to be done therein or anything to be brought into or kept
therein which, in the reasonable judgment of Landlord, shall in any way impair
or tend to impair the character, reputation or appearance of the Building as a
high quality office building, impair or interfere with or tend to impair or
interfere with any of the Building services or the
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proper and economic heating, cleaning, air conditioning or other servicing of
the Building or the demised premises, or impair or interfere with or tend to
impair or interfere with the use of any of the other areas of the Building by,
or occasion discomfort, inconvenience or annoyance to, any of the other tenants
or occupants of the Building. Tenant shall not install any electrical or other
equipment of any kind which, in the judgment of Landlord, might cause any such
impairment, interference, discomfort, inconvenience or annoyance.
ARTICLE 6
ALTERATIONS AND INSTALLATIONS
6.01 Tenant shall make no alterations, installations, additions
or improvements in or to the demised premises without Landlord's prior written
consent and then only by contractors or mechanics first approved by Landlord.
All such work, alterations, installations, additions and improvements shall be
done at Tenant's sole expense and at such times and in such manner as Landlord
may from time to time reasonably designate. Upon completion of such work, Tenant
shall obtain and deliver to Landlord written, unconditional waivers of
mechanic's or other liens on the real property in which the demised premises are
located, signed by all architects, engineers, contractors, mechanics and
designers to become involved in such work. In connection with any alterations
costing in excess of $100,000 (excluding Tenant's Work and Tenant's initial
build-out of the Added Space, as hereinafter defined, provided Tenant shall use
bondable contractors and subcontractors in connection with the performance of
same), Tenant shall also provide at Landlord's request such financial security
as Landlord shall require to guarantee completion of work performed by Tenant
pursuant to this Article 6 and payment of all contractors and suppliers utilized
in connection therewith.
Any installations, materials and work which may be undertaken by
or for the account of Tenant to prepare, equip, decorate and furnish the demised
premises for Tenant's occupancy and any future work in the demised premises
shall be effected solely in accordance with plans and specifications first
approved in writing by Landlord. Tenant shall reimburse Landlord promptly upon
demand for any reasonable out-of-pocket costs and expenses actually incurred by
Landlord in connection with Landlord's review of such Tenant's plans and
specifications. Landlord will not unreasonably withhold or delay its consent to
requests for nonstructural alterations, additions and improvements provided they
will not affect the outside of the Building or any area outside the demised
premises (other than mechanical systems) or adversely affect its structure,
electrical, HVAC, plumbing
<PAGE>
or mechanical systems.
Any such approved alterations and improvements shall be performed
in accordance with the foregoing and the following provisions of this Article 6:
(i) All work shall be done in a good and workmanlike
manner.
(ii) In the event Tenant shall employ any contractor to
do in the demised premises any work permitted by
this Lease, such contractor and any subcontractor
shall agree to employ only such labor as will not
result in jurisdictional disputes or strikes or
result in causing disharmony with other workers
employed at the Building.
(iii) All such alterations shall be effected in
compliance with all applicable laws, ordinances,
rules and regulations of governmental bodies having
or asserting jurisdiction in the demised premises
and in accordance with Landlord's Rules and
Regulations with respect to alterations, a copy of
which is annexed hereto as Exhibit D and made a
part hereof.
(iv) Tenant shall keep the Building and the demised
premises free and clear of all liens for any work
or material claimed to have been furnished to
Tenant or to the demised premises on Tenant's
behalf, and all work to be performed by Tenant
shall be done in a manner which will not
unreasonably interfere with or disturb other
tenants or occupants of the Building.
(v) During the progress of the work to be done by
Tenant, said work shall be subject to inspection by
representatives of Landlord who shall be permitted
access to the demised premises and the opportunity
to inspect, at all reasonable times, but this
provision shall not in any way whatsoever create
any obligation on Landlord to conduct such an
inspection. In conducting any such inspection,
Landlord shall use reasonable efforts to minimize
any interference with Tenant's construction,
without any obligation, however, to conduct such
<PAGE>
inspections during non-business hours.
(vi) With respect to alteration or improvement work,
other than Tenant's Work and Tenant's initial
build-out of the Added Space, costing more than Ten
Thousand Dollars ($10,000), Tenant agrees to pay to
Landlord's managing agent, as additional rent,
promptly upon being billed therefor, a sum equal to
ten percent (10%) of the cost of such work or
alteration and with respect to Tenant's Work and
Tenant's initial build-out of the Added Space, a
sum equal to three percent (3%) of the cost
thereof, for Landlord's indirect costs, field
supervision and coordination in connection with
such work.
(vii) Prior to commencement of any work, Tenant shall
furnish to Landlord certificates evidencing the
existence of:
(1) workmen's compensation insurance covering
all persons employed for such work; and
(2) reasonable comprehensive general liability
and property damage insurance naming
Landlord, its designees and Tenant as
insureds, with coverage of at least Three
Million Dollars ($3,000,000) single limit.
(viii) Before commencing any work costing in excess of
$100,000 (excluding Tenant's Work and Tenant's
initial build-out of the Added Space, provided
Tenant shall use bondable contractors and
subcontractors in connection with same) Tenant
shall furnish to Landlord such bonds for payment
and completion or such other security for
completion thereof and payment therefor as Landlord
shall reasonably require and in such form as is
reasonably satisfactory to Landlord and in an
amount which will be one hundred twenty percent
(120%) of the cost of performing such work, as
specified by Tenant's general contractor in its
contract for the performance of such work.
(ix) Any work affecting any mechanical systems of the
<PAGE>
Building, including, without limitation, the
electrical, plumbing and life safety systems, shall
be performed at Tenant's expense by a contractor
designated by Landlord, provided the charges of
such contractors shall be commercially reasonable.
Notice is hereby given that Landlord shall not be liable for any labor or
materials furnished or to be furnished to Tenant upon credit, and that no
mechanic's or other lien for any such labor or materials shall attach to or
affect the reversion or other estate or interest of Landlord in and to the
demised premises.
6.02 Any mechanic's lien, filed against the demised premises or
the Building for work claimed to have been done for, or materials claimed to
have been furnished to, Tenant shall be discharged by Tenant at its expense
within thirty (30) days after such filing, by payment, filing of the bond
required by law or otherwise.
6.03 All alterations, installations, additions and improvements
made and installed by Landlord, including without limitation any work referred
to in Article 2 hereof shall be the property of Landlord and shall remain upon
and be surrendered with the demised premises as a part thereof at the end of the
term of this Lease.
6.04 All alterations, installations, additions and improvements
made and installed by Tenant, or at Tenant's expense, upon or in the demised
premises which are of a permanent nature and which cannot be removed without
damage to the demised premises or Building shall become and be the property of
Landlord, and shall remain upon and be surrendered with the demised premises as
a part thereof at the end of the term of this Lease, except that Landlord shall
have the right and privilege at any time up to six (6) months prior to the
expiration of the term of this Lease to serve notice upon Tenant that any
"Non-Standard Alterations" (as hereinafter defined in this Section 7.05) shall
be removed and, in the event of service of such notice, Tenant will, at Tenant's
own cost and expense, remove the same in accordance with such request, repair
any damage to the demised premises caused by such removal and restore the
demised premises to their original condition, ordinary wear and tear and
casualty excepted; provided that Landlord shall have advised Tenant at the time
it consented to any such Non-Standard Alteration that Landlord may require its
removal at the end of the Term if Tenant shall have requested such advice when
it requested Landlord's consent to such Alteration. For the purposes of this
Article 6, "Non-Standard Alteration" shall mean the following non-standard
Building improvements: auditoriums or similar type special use areas, vaults,
atriums, kitchen equipment and installations, internal
<PAGE>
stairways, slab reinforcements which reduce the height of the finished ceiling
from the floor (assuming a customary distance between the finished ceiling and
the underside of the floor slab above) or impede the installation of duct work
and other normal installations above the finished ceiling, and any other
Alteration which is not suitable for normal office occupancy or which would be
unusually difficult or costly to remove in comparison to the usual Alterations
required for general office purposes.
6.05 Where furnished by or at the expense of Tenant all
furniture, furnishings and trade fixtures, including without limitation, murals,
business machines and equipment, counters, screens, cages, movable partitions,
metal railings, movable closets, and any other movable property shall remain the
property of Tenant which may, at its option, remove all or any part thereof at
any time prior to the expiration of the term of this Lease. In case Tenant shall
decide not to remove any part of such property, Tenant shall notify Landlord in
writing not less than three (3) months prior to the expiration of the term of
this Lease, specifying the items of property which it has decided not to remove.
If, within thirty (30) days after the service of such notice, Landlord shall
request Tenant to remove any of the said property, Tenant shall, at its expense,
remove the same and at Landlord's option either repair any damage caused by such
removal or restore the affected portion of the demised premises to its original
condition. As to such property which Landlord does not request Tenant to remove,
the same shall be, if left by Tenant, deemed abandoned by Tenant and thereupon
the same shall become the property of Landlord.
If any alterations, installations, additions, improvements or other property
which Tenant shall have the right to remove or be requested by Landlord to
remove as provided in Sections 6.04 and 6.05 hereof (herein in this Section 6.06
called the "property") are not removed on or prior to the expiration of the term
of this Lease, Landlord shall have the right to remove the property and to
dispose of the same without accountability to Tenant and at the sole cost and
expense of Tenant. In case of any damage to the demised premises or the Building
resulting from the removal of the property Tenant shall repair such damage or,
in default thereof, shall reimburse Landlord for Landlord's cost in repairing
such damage. This obligation shall survive any termination of this Lease.
6.06 Tenant shall have the right to install, and Tenant shall
maintain throughout the term of this lease, at Tenant's sole cost and expense,
signage on the entrance door to the demised premises on any floor in which the
demised premises is located (full or partial) and in the elevator lobby of any
full floor upon which the demised premises are located. Any such signage shall
be of a Building
<PAGE>
standard size and material, subject to Landlord's consent, not to be
unreasonably withheld, and otherwise in compliance with all applicable laws,
rules and regulations.
6.07 Tenant shall keep records of Tenant's alterations,
installations, additions and improvements costing in excess of Ten Thousand
Dollars ($10,000), and of the cost thereof. Tenant shall, within thirty (30)
days after demand by Landlord, furnish to Landlord copies of such records and
cost if Landlord shall require same in connection with any proceeding to reduce
the assessed valuation of the Building, or in connection with any proceeding
instituted pursuant to Article 16 hereof.
ARTICLE 7
REPAIRS
7.01 Tenant shall take good care of the demised premises and the
fixtures, equipment and appurtenances therein and shall, at its sole cost and
expense, make such repairs to the demised premises and the fixtures, equipment
and appurtenances therein as are necessitated by the (i) act, omission,
occupancy or negligence of Tenant or Tenant's employees, contractors, invitees,
licensees or other occupants of the demised premises or (ii) use of the demised
premises in a manner contrary to the purposes for which same are leased to
Tenant, as and when needed to preserve them in good working order and condition.
Notwithstanding the foregoing, all damage or injury to the Building, or to its
fixtures, equipment and appurtenances, whether requiring structural or
non-structural repairs, caused by or resulting from the act, omission, occupancy
or negligence of Tenant or Tenant's employees, contractors, invitees, licensees
or other occupants of the demised premises, shall be repaired promptly by Tenant
(or by Landlord, if a structural repair), at Tenant's sole cost and expense.
Except as otherwise provided in Section 9.05 hereof, all damage or injury to the
demised premises and to its fixtures, appurtenances and equipment or to the
Building or to its fixtures, appurtenances and equipment caused by Tenant moving
property into or out of the Building or by installation or removal of furniture,
fixtures or other property, shall be repaired, restored or replaced promptly by
Tenant at its sole cost and expense, which repairs, restorations and
replacements shall be in quality and class equal to the original work or
installations. If Tenant fails to commence such repairs, restoration or
replacements within ten (10) days after demand from Landlord (or if, after such
commencement, Tenant fails to complete such repairs with due diligence), the
same may be made by Landlord at the expense of Tenant
<PAGE>
and such expense shall be collectible as additional rent and shall be paid by
Tenant within fifteen (15) days after rendition of a bill therefor. The
provisions of this Section 7.01 shall be subject to the provisions of Section
9.08.
The exterior walls of the Building, the portions of any window
sills outside the windows, the windows, the fire stairs, utility closets and any
shafts passing through the floor on which the demised premises are located are
not part of the premises demised by this Lease, and Landlord reserves all rights
to such parts of the Building.
7.02 Tenant shall not place a load upon any floor of the demised
premises exceeding the floor load per square foot area which such floor was
designed to carry and which is allowed by law.
7.03 Business machines and mechanical equipment used by Tenant
which cause vibration, noise, cold or heat that may be transmitted to the
Building structure or to any leased space to such a degree as to be reasonably
objectionable to Landlord or to any other tenant in the Building shall be placed
and maintained by Tenant at its expense in settings of cork, rubber or spring
type vibration eliminators sufficient to absorb and prevent such vibration or
noise, or prevent transmission of such cold or heat. The parties hereto
recognize that the operation of elevators, air conditioning and heating
equipment will cause some vibration, noise, heat or cold which may be
transmitted to other parts of the Building and demised premises. Neither
Landlord nor Tenant shall be under any obligation to endeavor to reduce such
vibration, noise, heat or cold.
7.04 Except as otherwise specifically provided in this Lease,
there shall be no allowance to Tenant for a diminution of rental value and no
liability on the part of Landlord by reason of inconvenience, annoyance or
injury to business arising from the making of any repairs, alterations,
additions or improvements in or to any portion of the Building or the demised
premises or in or to fixtures, appurtenances or equipment thereof. In connection
with such repairs, alterations, additions or improvements, Landlord shall use
reasonable efforts to minimize any interference with Tenant's construction or
the conduct of Tenant's business in the demised premises, without any
obligation, however, to employ labor at overtime or other premium pay rates.
7.05 Landlord, at its expense, shall keep and maintain the
Building and its systems and facilities serving the demised premises, in good
working order, condition and repair and shall make all repairs, structural and
otherwise, interior and exterior, as and when needed in or about the demised
premises, except for
<PAGE>
those repairs for which Tenant is responsible pursuant to any other provisions
of this Lease.
ARTICLE 8
REQUIREMENTS OF LAW
8.01 Tenant, at Tenant's sole cost and expense, shall comply with
all laws, orders and regulations of federal, state, county and municipal
authorities, and with any direction of any public officer or officers, pursuant
to law, which shall impose any violation, order or duty upon Landlord or Tenant
with respect to the demised premises, or the use or occupation thereof.
Notwithstanding the foregoing, Tenant shall not be required to make any
structural alterations in the demised premises or changes or additions to any
Building systems to comply with laws unless the necessity for same shall arise
from Tenant's particular manner of use of the demised premises or the particular
manner of operation of its installations, equipment or other property in the
demised premises, any cause or condition created by or at the instance of Tenant
or any breach of Tenant's obligations hereunder.
8.02 Notwithstanding the provisions of Section 8.01 hereof,
Tenant, at its own cost and expense, may contest, in any manner permitted by law
(including appeals to a court, or governmental department or authority having
jurisdiction in the matter), the validity or the enforcement of any governmental
act, regulation or directive with which Tenant is required to comply pursuant to
this Lease, and may defer compliance therewith provided that:
(a) such non-compliance shall not subject Landlord to
criminal prosecution or subject the Land and/or Building to lien or sale;
(b) such non-compliance shall not be in violation of any
fee mortgage, or of any ground or underlying lease or any mortgage thereon;
(c) Tenant shall first deliver to Landlord a surety bond
issued by a surety company of recognized responsibility, or other security
satisfactory to Landlord, indemnifying and protecting Landlord against any loss
or injury by reason of such non-compliance; and
(d) Tenant shall promptly and diligently prosecute such
contest.
<PAGE>
Landlord, without expense or liability to it, shall cooperate
with Tenant and execute any documents or pleadings required for such purpose,
provided that Landlord shall reasonably be satisfied that the facts set forth in
any such documents or pleadings are accurate.
ARTICLE 9
INSURANCE, LOSS, REIMBURSEMENT, LIABILITY
9.01 Tenant shall not cause, do, or permit to be done any act or
thing upon the demised premises, which will invalidate or be in conflict with
New York standard fire insurance policies covering the Building, and fixtures
and property therein, or which would increase the rate of fire insurance
applicable to the Building to an amount higher than it otherwise would be; and
Tenant shall neither do nor permit to be done any act or thing upon the demised
premises which shall subject Landlord to any liability or responsibility for
injury to any person or persons or to property by reason of any business or
operation being carried on within the demised premises; but nothing in this
Section 9.01 shall prevent Tenant's use of the demised premises for the purposes
stated in Article 5 hereof.
9.02 If, as a result of any act or omission by Tenant or
violation of this Lease, the rate of fire insurance applicable to the Building
shall be increased to an amount higher than it otherwise would be, Tenant shall
reimburse Landlord for all increases of Landlord's fire insurance premiums so
caused; such reimbursement to be additional rent payable upon the first day of
the month following Landlord's giving of a notice to Tenant setting forth any
outlay by Landlord for such increased fire insurance premiums. In any action or
proceeding wherein Landlord and Tenant are parties, a schedule or "make-up" of
rates for the Building or demised premises issued by the body making fire
insurance rates for the demised premises, shall be presumptive evidence of the
facts therein stated and of the several items and charges in the fire insurance
rate then applicable to the demised premises.
9.03 Landlord or its agents shall not be liable for any injury or
damage to persons or property resulting from fire, explosion, falling plaster,
steam, gas, electricity, water, rain or snow or leaks from any part of the
Building, or from the pipes, appliances or plumbing works or from the roof,
street or subsurface or from any other place or by dampness or by any other
cause of whatsoever nature, unless any of the foregoing shall be caused by or
due to the negligence of Landlord, its agents, servants or employees.
<PAGE>
9.04 Landlord or its agents shall not be liable for any damage
which Tenant may sustain, if at any time any window of the demised premises is
broken, or temporarily or permanently (restricted to windows on a lot line, if
permanently) closed, darkened or bricked up for any reason whatsoever, except
only Landlord's arbitrary acts if the result is permanent, and Tenant shall not
be entitled to any compensation therefor or abatement of rent or to any release
from any of Tenant's obligations under this Lease, nor shall the same constitute
an eviction.
9.05 Tenant shall reimburse Landlord for all expenses, damages or
fines incurred or suffered by Landlord, by reason of any breach, violation or
non-performance by Tenant, or its agents, servants or employees, of any covenant
or provision of this Lease, or by reason of damage to persons or property caused
by moving property of or for Tenant in or out of the Building, or by the
installation or removal of furniture or other property of or for Tenant except
as provided in Section 6.05 of this Lease, or by reason of or arising out of the
carelessness, negligence or improper conduct of Tenant, or its agents, servants
or employees, in the use or occupancy of the demised premises. Subject to the
provisions of Section 8.02 hereof, where applicable, Tenant shall have the
right, at Tenant's own cost and expense, to participate in the defense of any
action or proceeding brought against Landlord, and in negotiations for
settlement thereof if, pursuant to this Section 9.05, Tenant would be obligated
to reimburse Landlord for expenses, damages or fines incurred or suffered by
Landlord.
9.06 Tenant shall give Landlord notice in case of fire or
accidents in the demised premises promptly after Tenant is aware of such event.
9.07 Tenant agrees to look solely to Landlord's estate and
interest in the Land and Building, or any ground or underlying lease of the
Building, or of the Land and Building, and the demised premises, for the
satisfaction of any right or remedy of Tenant for the collection of a judgment
(or other judicial process) requiring the payment of money by Landlord, in the
event of any liability by Landlord, and no other property or assets of Landlord
(or the partners or members thereof if Landlord is other than an individual or
corporation) shall be subject to levy, execution, attachment, or other
enforcement procedure for the satisfaction of Tenant's remedies under or with
respect to this Lease, the relationship of Landlord and Tenant hereunder, or
Tenant's use and occupancy of the demised premises, or any other liability of
Landlord to Tenant.
9.08 (a) Landlord agrees that it will include in its fire
insurance policies appropriate clauses pursuant to which the insurance companies
(i) waive all
<PAGE>
right of subrogation against Tenant with respect to losses payable under such
policies and/or (ii) agree that such policies shall not be invalidated should
the insured waive in writing prior to a loss any or all right of recovery
against any party for losses covered by such policies. But should any additional
premiums be exacted for any such clause or clauses, Landlord shall be released
from the obligation hereby imposed unless Tenant shall pay such additional
premium.
(b) Tenant agrees to include in its fire insurance policy
or policies on its furniture, furnishings, fixtures and other property removable
by Tenant under the provisions of this Lease appropriate clauses pursuant to
which the insurance company or companies (i) waive the right of subrogation
against Landlord and any tenant of space in the Building with respect to losses
payable under such policy or policies and/or (ii) agree that such policy or
policies shall not be invalidated should the insured waive in writing prior to a
loss any or all right of recovery against any party for losses covered by such
policy or policies. But should any additional premium be exacted for any such
clause or clauses, Tenant shall be released from the obligation hereby imposed
unless Landlord or the other tenants shall pay such additional premium.
(c) Provided that Landlord's right of full recovery under
its policy or policies aforesaid is not adversely affected or prejudiced
thereby, Landlord hereby waives any and all right of recovery which it might
otherwise have against Tenant, its servants, agents and employees, for loss or
damage occurring to the Building and the fixtures, appurtenances and equipment
therein, to the extent the same is covered by Landlord's insurance,
notwithstanding that such loss or damage may result from the negligence or fault
of Tenant, its servants, agents or employees. Provided that Tenant's right of
full recovery under its aforesaid policy or policies is not adversely affected
or prejudiced thereby, Tenant hereby waives any and all right of recovery which
it might otherwise have against Landlord, its servants, agents and employees,
and against every other tenant in the Building who shall have executed a similar
waiver as set forth in this Section 9.08(c) for loss or damage to, Tenant's
furniture, furnishings, fixtures and other property removable by Tenant under
the provisions hereof to the extent that same is covered by Tenant's insurance,
notwithstanding that such loss or damage may result from the negligence or fault
of Landlord, its servants, agents or employees, or such other tenant and the
servants, agents or employees thereof.
(d) Landlord and Tenant hereby agree to advise the other
promptly if the clauses to be included in their respective insurance policies
pursuant to subdivisions 9.08 (a) and (b) hereof cannot be obtained. Landlord
and Tenant hereby also agree to notify the other promptly of any cancellation or
change of the
<PAGE>
terms of any such policy which would affect such clauses.
9.09 Tenant covenants and agrees to provide on or before the
Commencement Date and to keep in force during the term hereof for the benefit of
Landlord and Tenant the following insurance policy naming Landlord and, if
Landlord gives Tenant the names thereof, Landlord's managing agent, lessors
under superior leases and the holders of any mortgages affecting the Land and/or
Building as additional insureds. Tenant covenants to provide on or before the
commencement of the term of this Lease:
LIABILITY INSURANCE: Tenant shall procure and at all times during the term of
this Lease shall maintain policies of commercial general and umbrella liability
insurance covering the demised premises on an occurrence basis and shall not
contain any deductibles (other than in commercially reasonable amounts) or
self-insured retentions. The policy shall provide that general and specific
aggregates are per location covered and shall further provide minimum limits, as
follows:
COMMERCIAL GENERAL LIABILITY:
$1,000,000 per occurrence; combined single limit bodily injury and
property damage
$5,000 medical payments coverage
$50,000 fire legal liability coverage
$2,000,000 general aggregate
$1,000,000 per occurrence
$2,000,000 annual aggregate; personal injury coverage
$1,000,000 per occurrence
$2,000,000 annual aggregate; products/completed operations
coverage
UMBRELLA LIABILITY:
$10,000,000 per occurrence
$10,000,000 general and specific aggregates
<PAGE>
Policy shall cover excess of general and automobile liability and shall include
said policies as underlying and provisions of the umbrella shall apply in the
same manner as the primary policies.
WORKERS' COMPENSATION
Tenant shall procure and at all times during the term of this Lease shall
maintain a policy of statutory worker's compensation insurance covering Tenant's
employees with unlimited employer's liability coverage.
UMBRELLA LIABILITY
Umbrella liability shall cover in the same manner as the primary commercial
general liability policy above and shall contain no additional exclusions or
limitations than those of the general liability policy.
PROPERTY INSURANCE
Tenant shall procure and at all times during the term of this Lease shall
maintain a policy of all risk property insurance in an amount adequate to cover
the cost of replacement of all Tenant's decorations, improvements, fixtures,
furniture, stock and other contents; time element coverage including extra
expense to cover Tenant's loss as a result of a loss sustained by a peril
covered under the policy.
GENERAL
Commercial general liability and any umbrella policy will provide coverage for
and on behalf of the Landlord and its designees pursuant to the provisions of
this Lease as additional insured and will reflect that thirty (30) days prior
written notice of cancellation, modification or non-renewal be provided to
Landlord at the address so designated by Landlord.
Policy will provide that Tenant pays all premium under the policy. Landlord or
its agents shall not be responsible for the payment of any premiums for such
insurance.
Tenant will provide a certificate of insurances to Landlord prior to occupancy
of the demised premises and a minimum of twenty (20) days in advance for each
renewal or replacement of such insurance. If the policy contains more than one
location, Tenant may provide a certificate of insurance reflecting and
confirming that the insurance is provided in accordance with the insurance
provisions of this Lease and shall also include thereon a copy of all
endorsements specifically applicable to
<PAGE>
Landlord and the demised premises.
The minimum limits of insurance coverage required by the insurance provisions of
this Lease shall be subject to increase by Landlord from time to time, after the
commencement of the third (3rd) anniversary of the Commencement Date if
Landlord, in its reasonable judgment, shall deem the same necessary for adequate
protection. Within thirty (30) days of demand for such increased coverage,
Tenant shall deliver to Landlord evidence of such increased coverage in the form
of an endorsement or replacement insurance policy or certificate and in keeping
with all other insurance provisions contained herein. In the event of Tenant's
failure to procure or maintain the coverages required hereunder in accordance
with the insurance provisions contained herein, Landlord may, but is not
obligated to, procure said insurance at the cost and expense of Tenant to be
deemed additional rent hereunder, payable on demand. The minimum limits of
insurance coverage required by the insurance provisions of this Lease shall in
no way limit or diminish Tenant's liability.
Insurance companies must be satisfactory to Landlord as to an acceptable
Standard & Poor's or A.M. Best Rating with a minimum A. M. Best Rating of A - X.
In the event of Tenant's failure to procure or maintain the coverages required
hereunder in accordance with the insurance provisions contained herein, Landlord
may, but is not obligated to, procure said insurance at the cost and expense of
Tenant to be deemed additional rent hereunder, payable on demand.
Tenant's failure to provide and keep in force the aforementioned insurance shall
be regarded as a material default hereunder entitling Landlord to exercise any
or all of the remedies provided in this Lease in the event of Tenant's default
and continued failure after notice and the expiration of two (2) Business Days.
ARTICLE 10
DAMAGE BY FIRE OR OTHER CAUSE
10.01 If the Building or the demised premises shall be partially
or totally damaged or destroyed by fire or other cause, then whether or not the
damage or destruction shall have resulted from the fault or neglect of Tenant,
or its employees, agents or visitors (and if this Lease shall not have been
terminated as in this Article 10 hereinafter provided), Landlord shall repair
the damage and restore and rebuild the Building and/or the demised premises, at
its expense (without
<PAGE>
limiting the rights of Landlord under any other provisions of this Lease), with
reasonable dispatch after notice to it of the damage or destruction; provided,
however, that Landlord shall not be required to repair or replace any of
Tenant's property.
10.02 If the Building or the demised premises shall be partially
damaged or partially destroyed by fire or other cause, the rents payable
hereunder shall be abated to the extent that the demised premises shall have
been rendered untenantable for the period from the date of such damage or
destruction to the date the damage shall be repaired or restored. If the demised
premises or a major part thereof shall be totally (which shall be deemed to
include substantially totally) damaged or destroyed or rendered completely
(which shall be deemed to include substantially completely) untenantable on
account of fire or other cause, the rents shall abate as of the date of the
damage or destruction and until Landlord shall repair, restore and rebuild the
Building and the demised premises substantially to its condition immediately
prior to the fire or other casualty, provided, however, that should Tenant
reoccupy a portion of the demised premises to conduct its business therefrom
during the period the restoration work is taking place and prior to the date
that the same are made completely tenantable, rents allocable to such portion
shall be payable by Tenant from the date of such occupancy.
10.03 If the Building or the demised premises shall be totally
damaged or destroyed by fire or other cause, or if the Building shall be so
damaged or destroyed by fire or other cause (whether or not the demised premises
are damaged or destroyed) as to require a reasonably estimated expenditure of
more than forty percent (40%) of the full insurable value of the Building
immediately prior to the casualty, then in either such case Landlord may
terminate this Lease by giving Tenant notice to such effect within ninety (90)
days after the date of the fire or other cause. In case of any damage or
destruction mentioned in this Article 10, Tenant may terminate this Lease by
notice to Landlord, if Landlord has not completed the making of the required
repairs and restored and rebuilt the Building and the demised premises within
twelve (12) months from the date of such damage or destruction, or within such
period after such date (not exceeding six (6) months) as shall equal the
aggregate period Landlord may have been delayed in doing so by adjustment of
insurance, labor trouble, governmental controls, act of God, or any other cause
beyond Landlord's reasonable control.
10.04 No damages, compensation or claim shall be payable by
Landlord for inconvenience, loss of business or annoyance arising from any
repair or restoration of any portion of the demised premises or of the Building
pursuant to this Article 10.
<PAGE>
10.05 Notwithstanding any of the foregoing provisions of this
Article 10, if Landlord or the lessor of any superior lease or the holder of any
superior mortgage shall be unable to collect all of the insurance proceeds
(including rent insurance proceeds) applicable to damage or destruction of the
demised premises or the Building by fire or other cause, by reason of some
action or inaction on the part of Tenant or any of its employees, agents or
contractors, then, without prejudice to any other remedies which may be
available against Tenant, there shall be no abatement of Tenant's rents, but the
total amount of such rents not abated (which would otherwise have been abated)
shall not exceed the amount of uncollected insurance proceeds.
10.06 Landlord will not carry separate insurance of any kind on
Tenant's property, and, except as provided by law or by reason of its breach of
any of its obligations hereunder, shall not be obligated to repair any damage
thereto or replace the same. Tenant shall maintain insurance on Tenant's
property, and Landlord shall not be obligated to repair any damage thereto or
replace the same.
10.07 Landlord and Tenant 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.
10.08 The provisions of this Article 10 shall be considered an
express agreement governing any cause of damage or destruction of the demised
premises by fire or other casualty, and Section 227 of the Real Property Law of
the State of New York, providing for such a contingency in the absence of an
express agreement, and any other law of like import, now or hereafter in force,
shall have no application in such case.
10.09 If during the final two (2) years of this Lease the
Building or the demised premises shall be damaged or destroyed to the extent set
forth in Section 10.03, either party shall have the right to terminate this
Lease upon written notice to the other party given within thirty (30) days
following such casualty in accordance with the notice requirements set forth
herein.
ARTICLE 11
ASSIGNMENT, MORTGAGING, SUBLETTING, ETC.
11.01 Tenant shall not (a) assign or otherwise transfer this
<PAGE>
Lease or the term and estate hereby granted, (b) sublet the demised premises or
any part thereof or allow the same to be used or occupied by others or in
violation of Article 5 hereof or (c) mortgage, pledge or encumber this Lease or
the demised premises or any part thereof in any manner or permit any lien to be
filed against this Lease, the demised premises or the Building by reason of any
act or omission on the part of Tenant or enter into any agreement which would
permit the filing of a lien by any broker without, in each instance, obtaining
the prior consent of Landlord, except as otherwise expressly provided in this
Article 11. For purposes of this Article 11, (i) the transfer of a majority of
the issued and outstanding capital stock of any corporate tenant, or of a
corporate subtenant, or the transfer of a majority of the total interest in any
partnership tenant or subtenant, however accomplished, whether in a single
transaction or in a series of related or unrelated transactions, shall be deemed
an assignment of this Lease, or of such sublease, as the case may be, except
that the transfer of any of the outstanding capital stock of any corporate
tenant, or subtenant, shall be deemed not to include the sale (including a
public offering) of such stock by persons or parties, through the
"over-the-counter market" or through any recognized stock exchange, other than
those deemed "insiders" within the meaning of the Securities Exchange Act of
1934 as amended, (ii) a takeover agreement shall be deemed a transfer of this
Lease, (iii) any person or legal representative of Tenant, to whom Tenant's
interest under this Lease passes by operation of law, or otherwise, shall be
bound by the provisions of this Article 11, and (iv) a modification, amendment
or extension of a sublease shall be deemed a sublease.
11.02 The provisions of Section 11.01 hereof shall not apply to
transactions with a corporation into or with which Tenant is merged or
consolidated or with an entity to which substantially all of Tenant's assets are
transferred (provided such merger or transfer of assets is for a good business
purpose and not principally for the purpose of transferring the leasehold estate
created hereby, and provided further, that the assignee has a net worth at least
equal to the net worth of Tenant immediately prior to such merger or transfer)
or, if Tenant is a partnership, with a successor partnership.
11.03 Any assignment or transfer, whether made with Landlord's
consent as required by Section 11.01 or without Landlord's consent pursuant to
Section 11.02, shall be made only if, and shall not be effective until, the
assignee shall execute, acknowledge and deliver to Landlord a recordable
agreement, in form and substance reasonably satisfactory to Landlord, whereby
the assignee shall assume the obligations and performance of this Lease and
agree to be bound by and upon all of the covenants, agreements, terms,
provisions and conditions hereof on the part of Tenant to be performed or
observed from and after
<PAGE>
the date of the assignment or transfer, and whereby the assignee shall agree
that the provisions of Section 11.01 hereof shall, notwithstanding such an
assignment or transfer, continue to be binding upon it in the future. Tenant
covenants that, notwithstanding any assignment or transfer, whether or not in
violation of the provisions of this Lease, and notwithstanding the acceptance of
fixed annual rent by Landlord from an assignee or transferee or any other party,
Tenant shall remain fully and primarily liable for the payment of the fixed
annual rent and additional rent due and to become due under this Lease and for
the performance of all of the covenants, agreements, terms, provisions and
conditions of this Lease on the part of Tenant to be performed or observed.
11.04 The liability of Tenant, and the due performance by Tenant
of the obligations on its part to be performed under this Lease, shall not be
discharged, released or impaired in any respect by an agreement or stipulation
made by Landlord or any grantee or assignee of Landlord, by way of mortgage, or
otherwise, extending the time of, or modifying any of the obligations contained
in this Lease, or by any waiver or failure of Landlord to enforce any of the
obligations on Tenant's part to be performed under this Lease, and Tenant shall
continue liable hereunder. If any such agreement or modification operates to
increase the obligations of a tenant under this Lease, the liability under this
Section 11.04 of the tenant named in this Lease or any of its successors in
interest, (unless such party shall have expressly consented in writing to such
agreement or modification) shall continue to be no greater than if such
agreement or modification had not been made. To charge Tenant named in this
Lease and its successors in interest, no demand or notice of any default shall
be required. Tenant and each of its successors in interest hereby expressly
waive any such demand or notice.
11.05 (a) Should Tenant agree subject to the provisions of this
Lease to assign this Lease, other than by an assignment contemplated by Section
11.02, Tenant shall as soon as that agreement is consummated, but, in the event
of a transaction described in clause (b) of this Section 11.05, no less than two
(2) months prior to the effective date of the contemplated assignment, deliver
to Landlord a duplicate original of such agreement, and all ancillary agreements
with the proposed assignee, and Landlord shall then have the right to elect, by
notifying Tenant within thirty (30) days of such delivery, to (i) terminate this
Lease, as of such effective date as if it were the Expiration Date set forth in
this Lease or (ii) accept an assignment of this Lease from Tenant, and Tenant
shall then promptly execute and deliver to Landlord, or Landlord's designee if
so elected by Landlord, in form reasonably satisfactory to Landlord's counsel,
an assignment which shall be effective as of such effective date.
<PAGE>
(b) In the event that this Lease shall be assigned to
Landlord or Landlord's designee or if the demised premises shall be sublet to
Landlord or Landlord's designee pursuant to this Section 11.05, the provisions
of any such sublease or assignment and the obligations of Landlord and the
rights of Tenant with respect thereto shall not be binding upon or otherwise
affect the rights of any holder of a superior mortgage or of a lessor under a
superior lease unless such holder or lessor shall elect by written notice to
Tenant to succeed to the position of Landlord or its designee, as the case may
be, thereunder.
(c) Should Tenant agree, subject to the provisions of this
Lease, to sublet the demised premises or any portion thereof, other than by a
sublease contemplated by Sections 11.02 or 11.10, Tenant shall, as soon as that
agreement is consummated, but no less than two (2) months prior to the effective
date of the contemplated sublease, deliver to Landlord, a duplicate original of
the proposed sublease and all ancillary agreements with the proposed sublessee,
and Landlord shall then have the right to elect, by notifying Tenant within
thirty (30) days of such delivery, to (i) terminate this Lease as to the portion
of the demised premises affected by such subletting or as to the entire demised
premises, in the case of a subletting thereof for all or substantially the
remainder of the Term, as of such effective date, (ii) in the case of a proposed
subletting of the entire demised premises for all or substantially the remainder
of the Term, or any lesser period, either terminate this Lease or enter into an
assignment of this Lease or a subletting of the demised premises to Landlord
from Tenant for the remainder of the Term, at Landlord's option, and Tenant
shall then promptly execute and deliver to Landlord, or Landlord's designee if
so elected by Landlord, in form reasonably satisfactory to Landlord's counsel,
an assignment or subletting, as the case may be, which shall be effective as of
such effective date (there being no need to execute an agreement more than
merely confirming the date of termination in the event of Landlord's election of
same, this clause being self-operative) or, (iii) accept a sublease from Tenant
of the portion of the demised premises affected by such proposed subletting if
less than all or substantially all of the entire demised premises in the case of
a proposed subletting thereof for less than the remaining term hereof, and
Tenant shall then promptly execute and deliver a sublease to Landlord, or
Landlord's designee if so elected by Landlord, for the proposed term thereof, at
Landlord's option, commencing with such effective date, at either (x) the rental
terms reflected in the proposed sublease or (y) the rental terms contained in
this Lease on a per rentable square foot basis, as elected by Landlord in such
notice. In the case of a termination under clause (i) of this subsection (c),
Tenant shall be released from all of its obligations under this Lease with
respect to the portion of the demised premises affected by Tenant's proposed
subletting or as to the entire demised premises in the case of a proposed
subletting thereof to the
<PAGE>
same extent as if the effective date of such termination were the Expiration
Date. Tenant shall not be liable to Landlord for any default by any subtenant
designated by Landlord under clause (ii) or (iii) of this subsection (c).
(d) If Landlord should elect to have Tenant execute and
deliver a sublease to Landlord or its designee pursuant to any of the provisions
of this Section 11.05, said sublease shall be in a form reasonably satisfactory
to Landlord's counsel and on all the terms contained in this Lease, except that:
(i) The rental terms, if elected by Landlord, may be
either as provided in item (x) or item (y) of subsection
11.05(c) hereof,
(ii) The sublease shall not provide for any work to be
done for the subtenant or for any initial rent concessions
or contain provisions inapplicable to a sublease, except
that in the case of a subletting of a portion of the
demised premises Tenant shall reimburse subtenant for the
cost of erecting such demising walls as are necessary to
separate the subleased premises from the remainder of the
demised premises and to provide access thereto,
(iii) The subtenant thereunder shall have the right
to underlet the subleased premises, in whole or in part,
without Tenant's consent,
(iv) The subtenant thereunder shall have the right to
make, or cause to be made, any changes, alterations,
decorations, additions and improvements that such
subtenant may desire or authorize,
(v) Such sublease shall expressly negate any
intention that any estate created by or under such
sublease be merged with any other estate held by either of
the parties thereto,
(vi) Any consent required of Tenant, as lessor under
that sublease, shall be deemed granted if consent with
respect thereto is granted by Landlord,
(vii) There shall be no limitation as to the use of
the sublet premises by the subtenant thereunder,
<PAGE>
(viii) Any failure of the subtenant thereunder to
comply with the provisions of said sublease, other than
with respect to the payment of rent to Tenant, shall not
constitute a default thereunder or hereunder if Landlord
has consented to such non-compliance, and
(ix) Such sublease shall provide that Tenant's
obligations with respect to vacating the demised premises
and removing any changes, alterations, decorations,
additions or improvements made in the subleased premises
shall be limited to those which accrued and related to
such as were made prior to the effective date of the
sublease.
(e) If pursuant to the exercise of any of Landlord's
options pursuant to Section 11.05 hereof this Lease is terminated as to only a
portion of the demised premises, then the fixed annual rent payable hereunder
and the additional rent payable pursuant to Article 3 hereof shall be adjusted
in proportion to the portion of the demised premises affected by such
termination.
11.06 In the event that Landlord does not exercise any of the
options available to it pursuant to Section 11.05 hereof, Landlord shall not
unreasonably withhold or delay its consent to an assignment of this Lease or a
subletting of the whole or any part of the demised premises, provided:
(a) Tenant shall furnish Landlord with the name and
business address of the proposed subtenant or assignee, information with respect
to the nature and character of the proposed subtenant's or assignee's business,
or activities, such references and current financial information with respect to
net worth, credit and financial responsibility as are reasonably satisfactory to
Landlord, and an executed counterpart of the sublease or assignment agreement;
(b) The proposed subtenant or assignee is a reputable
party whose financial net worth, credit and financial responsibility is,
considering the responsibilities involved, reasonably satisfactory to Landlord;
<PAGE>
(c) The nature and character of the proposed subtenant or
assignee, its business or activities and intended use of the demised premises
is, in Landlord's reasonable judgment, in keeping with the standards of the
Building and the floor or floors on which the demised premises are located;
(d) The proposed subtenant or assignee is not then an
occupant of any part of the Building or a party who dealt with Landlord or
Landlord's agent (directly or through a broker) with respect to space in the
Building during the twelve (12) months immediately preceding Tenant's request
for Landlord's consent if comparable space is then available in the Building for
a comparable term;
(e) All costs incurred with respect to providing
reasonably appropriate means of ingress and egress from the sublet space or to
separate the sublet space from the remainder of the demised premises shall,
subject to the provisions of Article 6 with respect to alterations,
installations, additions or improvements be borne by Tenant or subtenant;
(f) Each sublease shall specifically state that (i) it is
subject to all of the terms, covenants, agreements, provisions, and conditions
of this Lease, (ii) the subtenant or assignee, as the case may be, will not have
the right to a further assignment thereof or sublease or assignment thereunder,
or to allow the demised premises to be used by others, without the consent of
Landlord in each instance, (iii) a consent by Landlord thereto shall not be
deemed or construed to modify, amend or affect the terms and provisions of this
Lease, or Tenant's obligations hereunder, which shall continue to apply to the
premises involved, and the occupants thereof, as if the sublease or assignment
had not been made;
(g) Tenant shall together with requesting Landlord's
consent hereunder, have paid Landlord any reasonable, out-of-pocket costs
incurred by Landlord to review the requested consent including any attorneys
fees incurred by Landlord;
(h) The proposed subtenant or assignee is not (i) a bank
trust company, safe deposit business, savings and loan association or loan
company; (ii) employment or recruitment agency; (iii) school, college,
university or educational institution whether or not for profit; (iv) a
government or any subdivision or agency thereof;
(i) In the case of a subletting of a portion of the
demised premises, the portion so sublet shall be regular in shape and suitable
for normal renting purposes and such subletting will not result in more than two
occupants (including Tenant) occupying each floor of the demised premises;
(j) The proposed assignment shall be for a consideration
or the proposed subletting shall be at a rental rate determined in an arm's
length transaction, and in no event shall Tenant advertise or list with brokers
at a lower rental rate then the rental rates then being charged under leases
being entered into
<PAGE>
by Landlord for comparable space in the Building.
11.07 If Tenant shall assign this Lease or sublease all or any
part of the demised premises, Tenant shall pay to Landlord, as additional rent:
(i) in the case of an assignment, an amount equal to fifty
percent (50%) of all sums and other considerations paid to Tenant by the
assignee for or by reason of such assignment or otherwise (including, but not
limited to, sums paid for the sale of Tenant's fixtures, leasehold improvements,
equipment, furniture, furnishings or other personal property, less, in the case
of a sale thereof, the then net unamortized or undepreciated cost thereof
determined on the basis of Tenant's federal income tax returns, as certified to
by the Chief Financial Officer of Tenant) and less the reasonable legal fees,
brokerage commissions and advertising expenses incurred in connection with such
assignment, amortized over the remaining term of this Lease.
(ii) in the case of a sublease, an amount equal to fifty
percent (50%) of the rents, additional charge or other consideration payable
under the sublease or otherwise to Tenant by the subtenant which is in excess of
the fixed annual rent and additional rent accruing during the term of the
sublease in respect of the subleased space (at the rate per square foot payable
by Tenant hereunder) pursuant to the terms hereof (including, but not limited
to, sums paid for the sale or rental of Tenant's fixtures, leasehold
improvements, equipment, furniture or other personal property, less, in the case
of the sale thereof, the then net unamortized or undepreciated cost thereof
determined on the basis of Tenant's federal income tax returns, as certified to
by the Chief Financial Officer of Tenant) and less the reasonable legal fees,
brokerage commissions and advertising expenses incurred in connection with such
subletting amortized over the term of such sublease.
The sums payable under this Section 11.07 shall be paid to Landlord as and when
paid by the subtenant or assignee, as the case may be, to Tenant.
11.08 If Tenant defaults in the payment of any rent, Landlord is
authorized to collect any rents due or accruing from any assignee, subtenant or
other occupant of the demised premises and to apply the net amounts collected to
the fixed annual rent and additional rent reserved herein. The receipt by
Landlord of any amounts from an assignee or subtenant, or other occupant of any
part of the demised premises shall not be deemed or construed as releasing
Tenant from Tenant's obligations hereunder or the acceptance of that party as a
direct tenant.
<PAGE>
11.09 In connection with any proposed assignment or sublease,
Tenant shall grant to Landlord's then managing agent the exclusive right to
sublease or to assign this Lease as the case may be for a period of ninety (90)
days after Tenant's notice of such proposed assignment or subletting.
11.10 Notwithstanding anything to the contrary contained herein,
Tenant shall not be required to obtain Landlord's consent (and the provisions of
Section 11.07 shall not apply) to the use of up to one-third (1/3) of the
rentable square feet of the demised premises to any one entity, and up to
one-half (1/2) of the rentable square feet of the demised premises in the
aggregate, as desk space in the demised premises by one or more entities (each
of which is hereinafter individually called a "Relationship Entity") each of
which has entered into a financial relationship with Tenant other than the
providing for of desk space in the demised premises. Permission to such
Relationship Entity(ies) to use the demised premises shall not create a tenancy
or any other interest in the demised premises except a license revocable by
Tenant at will which shall cease and expire in any event automatically without
notice upon the expiration or termination of the letting under this Lease and
all acts, omissions and operations of such Relationship Entities shall be deemed
acts, omissions and operations of the Tenant. Use of the demised premises
pursuant thereto shall not be deemed to entitle such Relationship Entities to
rights or privileges which Landlord has or may hereafter accord to lessees of
space in the Building.
ARTICLE 12
CERTIFICATE OF OCCUPANCY
12.01 Tenant will not at any time use or occupy the demised
premises in violation of the Certificate of Occupancy issued for the Building.
ARTICLE 13
ADJACENT EXCAVATION -- SHORING
13.01 If an excavation or other substructure work shall be made
upon land adjacent to the demised premises, or shall be authorized to be made,
Tenant shall afford to the person causing or authorized to cause such
excavation, license to enter upon the demised premises for the purpose of doing
such work as
<PAGE>
shall be necessary to preserve the wall of or the Building of which the demised
premises form a part from injury or damage and to support the same by proper
foundations without any claim for damages or indemnity against Landlord, or
diminution or abatement of rent.
ARTICLE 14
CONDEMNATION
14.01 In the event that the whole of the demised premises shall
be lawfully condemned or taken in any manner for any public or quasi-public use,
this Lease and the term and estate hereby granted shall forthwith cease and
terminate as of the date of vesting of title. In the event that only a part of
the demised premises shall be so condemned or taken, then, effective as of the
date of vesting of title, the fixed annual rent under Article 1 hereunder and
additional rents under Article 3 hereunder shall be abated in an amount thereof
apportioned according to the area of the demised premises so condemned or taken.
In the event that only a part (but more than a de minimus portion of the
Building shall be so condemned or taken, then (a) Landlord (whether or not the
demised premises be affected) may, at Landlord's option, terminate this Lease
and the term and estate hereby granted as of the date of such vesting of title
by notifying Tenant in writing of such termination within sixty (60) days
following the date on which Landlord shall have received notice of vesting of
title, or (b) if such condemnation or taking shall be of a substantial part of
the demised premises or of a substantial part of the means of access thereto,
Tenant may, at Tenant's option, by delivery of notice in writing to Landlord
within 30 days following the date on which Tenant shall have received notice of
vesting of title, terminate this Lease and the term and estate hereby granted as
of the date of vesting of title, or (c) if neither Landlord nor Tenant elects to
terminate this Lease, as aforesaid, this Lease shall be and remain unaffected by
such condemnation or taking, except that the fixed annual rent payable under
Article 1 and additional rents payable under Article 3 shall be abated to the
extent hereinbefore provided in this Article 14. In the event that only a part
of the demised premises shall be so condemned or taken and this Lease and the
term and estate hereby granted with respect to the remaining portion of the
demised premises are not terminated as hereinbefore provided, Landlord will,
with reasonable diligence and at its expense, restore the remaining portion of
the demised premises as nearly as practicable to the same condition as it was in
prior to such condemnation or taking.
14.02 In the event of its termination in any of the cases
<PAGE>
hereinbefore provided, this Lease and the term and estate hereby granted shall
expire as of the date of such termination with the same effect as if that were
the Expiration Date, and the fixed annual rent and additional rents payable
hereunder shall be apportioned as of such date.
14.03 In the event of any condemnation or taking hereinbefore
mentioned of all or a part of the Building, Landlord shall be entitled to
receive the entire award in the condemnation proceeding, including any award
made for the value of the estate vested by this Lease in Tenant, and Tenant
hereby expressly assigns to Landlord any and all right, title and interest of
Tenant now or hereafter arising in or to any such award or any part thereof, and
Tenant shall be entitled to receive no part of such award. Tenant shall be
permitted to make a separate claim with the condemning authority for its moving
and relocation expenses and the cost of its fixtures and leasehold improvements
provided that such claim shall not have and adverse affect upon Landlord's award
as herein provided.
14.04 It is expressly understood and agreed that the provisions
of this Article 14 shall not be applicable to any condemnation or taking for
governmental occupancy for a limited period and in such event this Lease shall
continue in full force and effect; provided, however, if Landlord is compensated
by the condemning or taking authority and Tenant shall have paid fixed annual
rent hereunder for a period it was not provided occupancy of the entire demises
premises as a result of such temporary condemnation or taking, Landlord shall
pay over to Tenant the applicable portion of such award, in an amount not to
exceed such fixed annual rent paid by Tenant, attributable to any space not so
occupied by Tenant.
14.05 In the event of any taking of less than the whole of the
Building which does not result in a termination of this Lease, or in the event
of a taking for a temporary use or occupancy of all or any part of the demised
premises which does not result in a termination of this Lease, Landlord, at its
expense, and whether or not any award or awards shall be sufficient for the
purpose, shall proceed with reasonable diligence to repair, alter and restore
the remaining parts of the Building and the demised premises to substantially
their former condition immediately prior to the taking to the extent that the
same may be feasible and so as to constitute a complete and tenantable Building
and demised premises.
14.06 In the event any part of the demised premises be taken to
effect compliance with any law or requirement of public authority other than in
the manner hereinabove provided in this Article 14, then, (i) if such compliance
is the obligation of Tenant under this Lease, Tenant shall not be entitled to
any
<PAGE>
diminution or abatement of rent or other compensation from Landlord therefor,
but (ii) if such compliance is the obligation of Landlord under this Lease, the
fixed annual rent hereunder shall be reduced and additional rents under Article
3 shall be adjusted in the same manner as is provided in Section 14.01 according
to the reduction in rentable area of the demised premises resulting from such
taking.
ARTICLE 15
ACCESS TO DEMISED PREMISES; CHANGES
15.01 Tenant shall permit Landlord to erect, use and maintain
pipes, ducts and conduits in and through the demised premises, provided the same
are installed in a concealed manner behind walls and ceilings of the demised
premises or, if not practicable, then adjacent to such walls and ceilings.
Landlord shall to the extent practicable install such pipes, ducts and conduits
by such methods and at such locations as will not materially interfere with or
impair Tenant's layout or use of the demised premises. Landlord or its agents or
designees shall have the right to enter the demised premises, at reasonable
times during business hours, for the making of such repairs or alterations as
Landlord may deem necessary for the Building or which Landlord shall be required
to or shall have the right to make by the provisions of this Lease or any other
lease in the Building and, subject to the foregoing, shall also have the right
to enter the demised premises for the purpose of inspecting them or exhibiting
them to prospective purchasers or lessees of the entire Building or to
prospective mortgagees of the fee or of Landlord's interest in the property of
which the demised premises are a part or to prospective assignees of any such
mortgages or to the holder of any mortgage on the Landlord's interest in the
property, its agents or designees. Landlord shall be allowed to take all
material into and upon the demised premises that may be required for the repairs
or alterations above mentioned as the same is required for such purpose, without
the same constituting an eviction of Tenant in whole or in part, and the rent
reserved shall in no wise abate while said repairs or alterations are being made
by reason of loss or interruption of the business of Tenant because of the
prosecution of any such work. Landlord shall exercise reasonable diligence so as
to minimize the disturbance but nothing contained herein shall be deemed to
require Landlord to perform the same on an overtime or premium pay basis.
15.02 Landlord reserves the right, without the same constituting
an eviction and without incurring liability to Tenant therefor, to renovate
and/or change the arrangement and/or location of public entrances,
<PAGE>
lobbies passageways, doors, doorways, corridors, elevators, stairways, toilets
and other public parts of the Building; provided, however, that access to the
Building shall not be cut off and that there shall be no unreasonable
obstruction of access to the demised premises or unreasonable interference with
the use or enjoyment thereof.
15.03 Landlord reserves the right to light from time to time all
or any portion of the demised premises at night for display purposes without
paying Tenant therefor.
15.04 Landlord may, during the twelve (12) months prior to
expiration of the term of this Lease, exhibit the demised premises to
prospective tenants.
15.05 If Tenant shall not be personally present to open and
permit an entry into the demised premises at any time when for any reason an
entry therein shall be urgently necessary by reason of fire or other emergency,
Landlord or Landlord's agents may forcibly enter the same without rendering
Landlord or such agents liable therefor (if during such entry Landlord or
Landlord's agents shall accord reasonable care to Tenant's property) and without
in any manner affecting the obligations and covenants of this Lease.
ARTICLE 16
CONDITIONS OF LIMITATION
16.01 This Lease and the term and estate hereby granted are
subject to the limitation that whenever Tenant shall make an assignment of the
property of Tenant for the benefit of creditors, or shall file a voluntary
petition under any bankruptcy or insolvency law or any involuntary petition
alleging an act of bankruptcy or insolvency shall be filed against Tenant under
any bankruptcy or insolvency law, or whenever a petition shall be filed by or
against Tenant under the reorganization provisions of the United States
Bankruptcy Act or under the provisions of any law of like import, or whenever a
petition shall be filed by Tenant under the arrangement provisions of the United
States Bankruptcy Act or under the provisions of any law of like import, or
whenever a permanent receiver of Tenant or of or for the property of Tenant
shall be appointed, then, Landlord may, (a) at any time after receipt of notice
of the occurrence of any such event, or (b) if such event occurs without the
acquiescence of Tenant, at any time after the event continues for sixty (60)
days, give Tenant a notice of intention to end the term of
<PAGE>
this Lease at the expiration of five (5) days from the date of service of such
notice of intention, and upon the expiration of said five (5) day period, this
Lease and the term and estate hereby granted, whether or not the term shall
theretofore have commenced, shall terminate with the same effect as if that day
were the Expiration Date, but Tenant shall remain liable for damages as provided
in Article 18.
16.02 This Lease and the term and estate hereby granted are
subject to further limitation as follows:
(a) whenever Tenant shall default in the payment of any
installment of fixed annual rent, or in the payment of any additional rent or
any other charge payable by Tenant to Landlord, on any day upon which the same
ought to be paid, and such default shall continue for five (5) days after
Landlord shall have given Tenant a notice specifying such default, or
(b) whenever Tenant shall do or permit anything to be
done, whether by action or inaction, contrary to any of Tenant's obligations
hereunder, and if such situation shall continue and shall not be remedied by
Tenant within fifteen (15) days after Landlord shall have given to Tenant a
notice specifying the same, or, in the case of a happening or default which
cannot with due diligence be cured within a period of fifteen (15) days and the
continuation of which for the period required for cure will not subject Landlord
to the risk of criminal liability (as more particularly described in Article 8
hereof) or termination of any superior lease or foreclosure of any superior
mortgage, if Tenant shall not, (i) within said fifteen (15) day period advise
Landlord of Tenant's intention to duly institute all steps necessary to remedy
such situation, (ii) duly institute within said fifteen (15) day period, and
thereafter diligently and continuously prosecute to completion all steps
necessary to remedy the same and (iii) complete such remedy within such time
after the date of the giving of said notice to Landlord as shall reasonably be
necessary, or
(c) whenever any event shall occur or any contingency
shall arise whereby this Lease or the estate hereby granted or the unexpired
balance of the term hereof would, by operation of law or otherwise, devolve upon
or pass to any person, firm or corporation other than Tenant, except as
expressly permitted by Article 11, or
(d) whenever Tenant shall abandon (i.e., vacate the
demised premises and not provide security therein and extermination thereof and
make efforts to sublet the demised premises) the demised premises (unless as a
result of a casualty), or
<PAGE>
(e) [Intentionally Omitted.]
(f) whenever Tenant shall default in the due keeping,
observing or performance of any covenant, agreement, provision or condition of
Article 5 hereof on the part of Tenant to be kept, observed or performed and if
such default shall continue and shall not be remedied by Tenant within
twenty-four (24) hours after Landlord shall have given to Tenant a notice
specifying the same,
(g) if during any consecutive eighteen (18) month period
during the term of this Lease (i) Tenant shall have on three (3) or more
occasions paid any installment of fixed annual rent or any additional rent more
than ten (10) days after the same was due hereunder and (ii) Landlord shall have
given Tenant notice of such default pursuant to subsection (a) hereof before
such default was cured,
then in any of said cases set forth in the foregoing subsections (a), (b), (c),
(d), (e), (f) and (g) Landlord may give to Tenant a notice of intention to end
the term of this Lease at the expiration of three (3) days from the date of the
service of such notice of intention, and upon the expiration of said three (3)
days this Lease and the term and estate hereby granted, whether or not the term
shall theretofore have commenced, shall terminate with the same effect as if
that day were the Expiration Date, but Tenant shall remain liable for damages as
provided in Article 18.
ARTICLE 17
RE-ENTRY BY LANDLORD, INJUNCTION
17.01 If Tenant shall default in the payment of any installment
of fixed annual rent, or of any additional rent, on any date upon which the same
ought to be paid, and if such default shall continue for five (5) days after
Landlord shall have given to Tenant a notice specifying such default, or if this
Lease shall expire as in Article 16 provided, Landlord or Landlord's agents and
employees may immediately or at any time thereafter re-enter the demised
premises, or any part thereof, either by summary dispossess proceedings or by
any suitable action or proceeding at law, or by force or otherwise (but only to
the extent such re-entry and the manner of such re-entry is not prohibited by
law), without being liable to indictment, prosecution or damages therefrom, to
the end that Landlord may have, hold and enjoy the demised premises again as and
of its first estate and interest therein. The word re-enter, as herein used, is
not restricted to its technical legal meaning. In the event of any termination
of this Lease under the provisions of Article 16 or if Landlord shall re-enter
the demised premises under the provisions of
<PAGE>
this Article 17 or in the event of the termination of this Lease, or of
re-entry, by or under any summary dispossess or other proceedings or action or
any provision of law by reason of default hereunder on the part of Tenant,
Tenant shall thereupon pay to Landlord the fixed annual rent and additional rent
payable by Tenant to Landlord up to the time of such termination of this Lease,
or of such recovery of possession of the demised premises by Landlord, as the
case may be, and shall also pay to Landlord damages as provided in Article 18.
17.02 In the event of a breach or threatened breach by Tenant of
any of its obligations under this Lease, Landlord shall also have the right of
injunction. The special remedies to which Landlord may resort hereunder are
cumulative and are not intended to be exclusive of any other remedies or means
of redress to which Landlord may lawfully be entitled at any time and Landlord
may invoke any remedy allowed at law or in equity as if specific remedies were
not provided for herein.
17.03 If this Lease shall terminate under the provisions of
Article 16, or if Landlord shall re-enter the demised premises under the
provisions of this Article 17, or in the event of the termination of this Lease,
or of re-entry, by or under any summary dispossess or other proceeding or action
or any provision of law by reason of default hereunder on the part of Tenant,
Landlord shall be entitled to retain all moneys, if any, paid by Tenant to
Landlord, whether as advance rent, security or otherwise, but such moneys shall
be credited by Landlord against any fixed annual rent or additional rent due
from Tenant at the time of such termination or re-entry or, at Landlord's option
against any damages payable by Tenant under Articles 16 and 18 or pursuant to
law.
17.04 Tenant hereby expressly waives any and all rights of
redemption granted by or under any present or future laws in the event of Tenant
being evicted or dispossessed for any cause, or in the event of Landlord
obtaining possession of the demised premises, by reason of the violation by
Tenant of any of the covenants and conditions of this Lease or otherwise.
ARTICLE 18
DAMAGES
18.01 If this Lease is terminated under the provisions of Article
16, or if Landlord shall re-enter the demised premises under the provisions of
Article 17, or in the event of the termination of this Lease, or of re-entry, by
or
<PAGE>
under any summary dispossess or other proceeding or action or any provision of
law by reason of default hereunder on the part of Tenant, Tenant shall pay to
Landlord as damages, at the election of Landlord, either
(a) a sum which at the time of such termination of this
Lease or at the time of any such re-entry by Landlord, as the case may be,
represents the then present value of the excess (discounted using the same rate
as U.S. Treasury Securities with a term equivalent to the period of time between
the date of termination of the Lease and the date the Lease was originally
scheduled to expire absent such termination) if any, of
(1) the aggregate of the fixed annual rent and the
additional rent payable hereunder which would have been
payable by Tenant (conclusively presuming the additional
rent to be the same as was payable for the year
immediately preceding such termination except that
additional rent on account of increases in Taxes and the
Wage Rate shall be presumed to increase at the average of
the rates of increase thereof previously experienced by
Landlord during the period (not to exceed 3 years) prior
to such termination) for the period commencing with such
earlier termination of this Lease or the date of any such
re-entry, as the case may be, and ending with the
Expiration Date, had this Lease not so terminated or had
Landlord not so re-entered the demised premises, over
(2) the aggregate rental value of the demised
premises for the same period, or
(b) sums equal to the fixed annual rent and the additional
rent (as above presumed) payable hereunder which would have been payable by
Tenant had this Lease not so terminated, or had Landlord not so re-entered the
demised premises, payable upon the due dates therefor specified herein following
such termination or such re-entry and until the Expiration Date, provided,
however, that if Landlord shall re-let the demised premises during said period,
Landlord shall credit Tenant with the net rents received by Landlord from such
re-letting, such net rents to be determined by first deducting from the gross
rents as and when received by Landlord from such re-letting, the expenses
incurred or paid by Landlord in terminating this Lease or in re-entering the
demised premises and in securing possession thereof, as well as the expenses of
re-letting, including altering and preparing the demised premises for new
tenants, brokers' commissions, and all other expenses properly chargeable
against the demised premises and the rental
<PAGE>
thereof; it being understood that any such re-letting may be for a period
shorter or longer than the remaining term of this Lease; but in no event shall
Tenant be entitled to receive any excess of such net rents over the sums payable
by Tenant to Landlord hereunder, or shall Tenant be entitled in any suit for the
collection of damages pursuant to this subsection to a credit in respect of any
net rents from a re-letting, except to the extent that such net rents are
actually received by Landlord. If the demised premises or any part thereof
should be re-let in combination with other space, then proper apportionment on a
square foot basis shall be made of the rent received from such re-letting and of
the expenses of re-letting.
If the demised premises or any part thereof be re-let by Landlord for the
unexpired portion of the term of this Lease, or any part thereof, to an entity
unaffiliated with Landlord, before presentation of proof of such damages to any
court, commission or tribunal, the amount of rent reserved upon such re-letting
shall, prima facie, be the fair and reasonable rental value for the demised
premises, or part thereof, so re-let during the term of the re-letting.
18.02 Suit or suits for the recovery of such damages, or any
installments thereof, may be brought by Landlord from time to time at its
election, and nothing contained herein shall be deemed to require Landlord to
postpone suit until the date when the term of this Lease would have expired if
it had not been so terminated under the provisions of Article 16, or under any
provision of law, or had Landlord not re-entered the demised premises. Nothing
herein contained shall be construed to limit or preclude recovery by Landlord
against Tenant of any sums or damages to which, in addition to the damages
particularly provided above, Landlord may lawfully be entitled by reason of any
default hereunder on the part of Tenant. Notwithstanding the foregoing, Landlord
shall not be entitled to consequential damages under this Section 18.02. Other
than as specifically provided above, nothing herein contained shall be construed
to limit or prejudice the right of Landlord to prove for and obtain as
liquidated damages by reason of the termination of this Lease or re-entry of the
demised premises for the default of Tenant under this Lease, an amount equal to
the maximum allowed by any statute or rule of law in effect at the time when,
and governing the proceedings in which, such damages are to be proved whether or
not such amount be greater, equal to, or less than any of the sums referred to
in Section 18.01.
<PAGE>
ARTICLE 19
LANDLORD'S RIGHT TO PERFORM TENANT'S OBLIGATIONS
19.01 If Tenant shall default in the observance or performance of
any term or covenant on Tenant's part to be observed or performed under or by
virtue of any of the terms or provisions in any Article of this Lease, (a)
Landlord may remedy such default for the account of Tenant, immediately and
without notice in case of emergency, or in any other case only provided that
Tenant shall fail to remedy such default with all reasonable dispatch after
Landlord shall have notified Tenant in writing of such default and the
applicable grace period for curing such default shall have expired; and (b) if
Landlord makes any expenditures or incurs any obligations for the payment of
money in connection with such default including, but not limited to, reasonable
attorneys' fees in instituting, prosecuting or defending any action or
proceeding, such sums paid or obligations incurred, with interest at the
Interest Rate, shall be deemed to be additional rent hereunder and shall be paid
by Tenant to Landlord upon rendition of a bill to Tenant therefor.
ARTICLE 20
QUIET ENJOYMENT
20.01 Landlord covenants and agrees that subject to the terms and
provisions of this Lease, if, and so long as, Tenant keeps and performs each and
every covenant, agreement, term, provision and condition herein contained on the
part or on behalf of Tenant to be kept or performed, then Tenant's rights under
this Lease shall not be cut off or ended before the expiration of the term of
this Lease, subject however, to: (i) the obligations of this Lease, and (ii) the
provisions of Article 25 hereof with respect to ground and underlying leases and
mortgages which affect this Lease.
ARTICLE 21
SERVICES AND EQUIPMENT
21.01 Landlord shall, at its cost and expense:
(a) Provide appropriate elevator facilities during
Business Hours of Business Days and shall have at least one elevator subject to
call at all other times. At Landlord's option, the elevators shall be operated
by automatic control or by manual control, or by a combination of both of such
methods.
<PAGE>
(b) Furnish heat to the demised premises during Business
Hours of Business Days. Landlord shall have no responsibility or liability for
the ventilating conditions and/or temperature of the demised premises during the
hours or days Landlord is not required to furnish heat pursuant to this
paragraph.
(c) Furnish cold water for lavatory and drinking and
office cleaning purposes. Tenant, at Tenant's sole cost and expense, shall have
the right to install a hot water heater to provide hot water to the demised
premises. If Tenant requires, uses or consumes water for any other purposes,
Tenant agrees to Landlord installing a meter or meters or other means to measure
Tenant's water consumption, and Tenant further agrees to reimburse Landlord for
the cost of the meter or meters and the installation thereof, and to pay for the
maintenance of said meter equipment and/or to pay Landlord's cost of other means
of measuring such water consumption by Tenant. Tenant shall reimburse Landlord
on demand for the cost of all water consumed, as measured by said meter or
meters or as otherwise measured, including sewer rents.
(d) Provide Tenant with up to ten (10) listings in the
existing Building's directory and, as and to the extent that a computerized
directory is hereinafter installed in the Building, up to twenty-five (25)
listings thereafter.
(e) Upon reasonable prior notice from Tenant, provide air
conditioning, heating, elevator, plumbing, electric and other systems during
non-Business Hours at Tenant's sole cost and expense which shall equal the then
current costs imposed by Landlord therefor.
(f) Clean and maintain the lobby and other public common
areas of the Building pursuant to a reasonable cleaning schedule determined by
Landlord.
21.02 Landlord reserves the right without any liability
whatsoever, or abatement of fixed annual rent, or additional rent, to stop the
heating, air-conditioning, elevator, plumbing, electric and other systems when
necessary by reason of accident or emergency or for repairs, alterations,
replacements or improvements, provided that except in case of emergency,
Landlord will notify Tenant in advance, if possible, of any such stoppage and,
if ascertainable, its estimated duration, and will proceed diligently with the
work necessary to resume such service as promptly as possible and in a manner so
as to minimize interference with Tenant's use and enjoyment of the demised
premises.
21.03 Tenant shall clean and maintain the demised premises
<PAGE>
and shall contract directly with the cleaner and a carting company for rubbish
removal designated by Landlord (and charging competitive rates)from time to time
to render such services to tenants of the Building.
21.04 It is expressly agreed that only Landlord or any one or
more persons, firms or corporations authorized in writing by Landlord will be
permitted to furnish laundry, linen, towels, drinking water, ice, and other
similar supplies and services to tenants and licensees in the Building. Landlord
may fix, in its reasonable discretion, at any time and from time to time, the
hours during which and the regulations under which such supplies and services
are to be furnished and under which, foods and beverages may be brought into
Building by persons other than regular employees of Tenant.
21.05 As part of Tenant's Work, Tenant shall install an air-
cooled packaged air conditioning unit on each floor of the demised premises
(hereinafter called the "Units") to provide air conditioning to the demised
premises. Tenant shall, at its sole cost and expense, operate and maintain the
Units. Such maintenance obligations shall be performed throughout the term of
this Lease, on Tenant's behalf and at Tenant's expense, by a reputable air
conditioning maintenance company, first reasonably approved by Landlord.
Tenant's obligation to maintain the Units shall include, but not be limited to,
the periodic cleaning and/or replacement of filters, replacements of fuses and
belts, the calibration of thermostats and all startup and shut down of the
Units. Tenant shall, at its sole cost and expense, perform any and all necessary
repairs, and cause any and all replacements of, the Units. The Units and any
replacements thereof shall be and remain at all times the property of Landlord,
and Tenant shall surrender the Units and all such replacements to Landlord on
the Expiration Date.
21.06 Subject to the terms of this Lease and to force majeure and
other matters beyond Landlord's control, Tenant shall have access to the
Building twenty-four (24) hours a day, seven (7) days per week.
21.07 Landlord will not be required to furnish any other
services, except as otherwise provided in this Lease.
ARTICLE 22
DEFINITIONS
22.01 The term "Landlord" as used in this Lease means only the
<PAGE>
owner, or the mortgagee in possession, for the time being of the Land and
Building (or the owner of a lease of the Building or of the Land and Building),
so that in the event of any transfer of title to said Land and Building or said
lease, or in the event of a lease of the Building, or of the Land and Building,
upon notification to Tenant of such transfer or lease the said transferor
Landlord shall be and hereby is entirely freed and relieved of any and all
covenants, obligations and liabilities of Landlord hereunder arising from and
after the date of transfer, and it shall be deemed and construed as a covenant
running with the land without further agreement between the parties or their
successors in interest, or between the parties and the transferee of title to
said Land and Building or said lease, or the said lessee of the Building, or of
the Land and Building, that the transferee or the lessee has assumed and agreed
to carry out any and all such covenants, obligations and liabilities of Landlord
hereunder.
22.02 The term "Business Days" as used in this Lease shall
exclude Saturdays, Sundays and all days observed by the Federal, State or local
government as legal holidays as well as all other days recognized as holidays
under applicable union contracts. The term "Business Hours" as used in this
Lease shall mean the hours between 8:00 a.m. and 6:00 p.m.
22.03 "Interest Rate" shall mean a rate per annum equal to the
lesser of (a) three percent (3%) above the commercial lending rate announced
from time to time by Citibank, N.A., as its prime rate for 90-day unsecured
loans, or (b) the maximum applicable legal rate, if any.
22.04 "Legal Requirements" shall mean laws, statutes and
ordinances (including building codes and zoning regulations and ordinances) and
the orders, rules, regulations, directives and requirements of all federal,
state, county, city and borough departments, bureaus, boards, agencies, offices,
commissions and other subdivisions thereof, or of any official thereof, or of
any other governmental public or quasi-public authority, whether now or
hereafter in force, which may be applicable to the Land or Building or the
demised premises or any part thereof, or the sidewalks, curbs or areas adjacent
thereto and all requirements, obligations and conditions of all instruments of
record on the date of this Lease.
ARTICLE 23
INVALIDITY OF ANY PROVISION
23.01 If any term, covenant, condition or provision of this Lease
<PAGE>
or the application thereof to any circumstance or to any person, firm or
corporation shall be invalid or unenforceable to any extent, the remaining
terms, covenants, conditions and provisions of this Lease or the application
thereof to any circumstances or to any person, firm or corporation other than
those as to which any term, covenant, condition or provision is held invalid or
unenforceable, shall not be affected thereby and each remaining term, covenant,
condition and provision of this Lease shall be valid and shall be enforceable to
the fullest extent permitted by law.
ARTICLE 24
BROKERAGE
24.01 Landlord and Tenant each covenants, represents and warrants
to the other that it has had no dealings or communications with any broker, or
agent other than Newmark & Company Real Estate, Inc. (which is representing
Landlord) and Julien J. Studley, Inc. in connection with the consummation of
this Lease. Landlord and Tenant each covenants and agrees to pay, hold harmless
and indemnify the other from and against any and all cost, expense (including
reasonable attorneys' fees) or liability for any compensation, commissions or
charges claimed by any broker or agent alleging to have dealt with Landlord or
Tenant, respectively, other than the brokers set forth in this Section 24.01,
with respect to this Lease or the negotiation thereof. Landlord shall pay the
brokerage fees due to Newmark & Company Real Estate, Inc. and Julien J. Studley,
Inc. pursuant to separate agreements. This Article 24 shall survive the
expiration or sooner termination of this Lease.
ARTICLE 25
SUBORDINATION
25.01 This Lease is and shall be subject and subordinate to all
ground or underlying leases which may now or hereafter affect the real property
of which the demised premises form a part and to all mortgages which may now or
hereafter affect such leases or such real property, and to all renewals,
modifications, replacements and extensions thereof. The provisions of this
Section 25.01 shall be self-operative and no further instrument of subordination
shall be required. In confirmation of such subordination, Tenant shall promptly
execute and deliver at its own cost and expense any instrument, in recordable
form
<PAGE>
if required, that Landlord, the lessor of the ground or underlying lease or the
holder of any such mortgage or any of their respective successors in interest
may reasonably request to evidence such subordination.
25.02 In the event of a termination of any ground or underlying
lease, or if the interests of Landlord under this Lease are transferred by
reason of, or assigned in lieu of, foreclosure or other proceedings for
enforcement of any mortgage, or if the holder of any mortgage acquires a lease
in substitution therefor, then Tenant under this Lease will, at the option to be
exercised in writing by the lessor under such ground or underlying lease or such
mortgagee or purchaser, assignee or lessee, as the case may be, either (i)
attorn to it and will perform for its benefit all the terms, covenants and
conditions of this Lease on Tenant's part to be performed with the same force
and effect as if said lessor, such mortgagee or purchaser, assignee or lessee,
were the landlord originally named in this Lease, or (ii) enter into a new lease
with said lessor or such mortgagee or purchaser, assignee or lessee, as
landlord, for the remaining term of this Lease and otherwise on the same terms
and conditions and with the same options, if any, then remaining. The foregoing
provisions of clause (i) of this Section 25.02 shall enure to the benefit of
such lessor, mortgagee, purchaser, assignee or lessee, shall be self-operative
upon the exercise of such option, and no further instrument shall be required to
give effect to said provisions. Tenant, however, upon demand of any such lessor,
mortgagee, purchaser, assignee or lessee agrees to execute, from time to time,
instruments in confirmation of the foregoing provisions of this Section 25.02,
reasonably satisfactory to any such lessor, mortgagee, purchaser, assignee or
lessee, acknowledging such attornment and setting forth the terms and conditions
of its tenancy.
25.03 Anything herein contained to the contrary notwithstanding,
under no circumstances shall the aforedescribed lessor under the ground lease or
mortgagee or purchaser, assignee or lessee, as the case may be, whether or not
it shall have succeeded to the interests of the landlord under this Lease, be
(a) liable for any act, omission or default of any prior
landlord prior to the foreclosure or other transfer; it being understood that
the foregoing is not intended to relieve any successor landlord of any liability
arising by reason of its acts or omissions from and after the date it succeeds
to the interests of Landlord, including a continuation of the failure of the
prior Landlord to perform its obligations under this Lease, in which case such
successor landlord shall have a reasonable period of time to remedy same; or
<PAGE>
(b) subject to any offsets, claims or defenses which the
Tenant might have against any prior landlord; or
(c) bound by any fixed annual rent or additional rent
which Tenant might have paid to any prior landlord for more than one month in
advance or for more than three months in advance where such rent payments are
payable at intervals of more than one month; or
(d) bound by any modification, amendment or abridgment of
this Lease, or any cancellation or surrender of the same, made without its prior
written approval.
25.04 If, in connection with the financing of the Building, the
holder of any mortgage shall request reasonable modifications in this Lease as a
condition of approval thereof, Tenant will not unreasonably withhold, delay or
defer making such modifications; provided same do not increase Tenant's
obligations or reduce Tenant's rights beyond a de minimus extent.
25.05 Tenant agrees that, except for the first month's rent
hereunder, it will pay no rent under this Lease more than thirty (30) days in
advance of its due date, if so restricted by any existing or future ground lease
or mortgage to which this Lease is subordinated or by an assignment of this
Lease to the ground lessor or the holder of such mortgage, and, in the event of
any act or omission by Landlord, Tenant will not exercise any right to terminate
this Lease or to remedy the default and deduct the cost thereof from rent due
hereunder until Tenant shall have given written notice of such act or omission
to the ground lessor and to the holder of any mortgage on the fee or the ground
lease who shall have furnished such lessor's or holder's last address to Tenant,
and until a reasonable period for remedying such act or omission shall have
elapsed following the giving of such notices, during which time such lessor or
holder shall have the right, but shall not be obligated, to remedy or cause to
be remedied such act or omission. Tenant shall not exercise any right pursuant
to this Section 26.02 if the holder of any mortgage or such aforesaid lessor
commences to cure such aforesaid act or omission within a reasonable time and
diligently prosecutes such cure thereafter.
ARTICLE 26
CERTIFICATE OF TENANT
26.01 Tenant agrees, at any time and from time to time, as
<PAGE>
requested by Landlord, upon not less than ten (10) days prior notice, to execute
and deliver to Landlord a statement certifying that this Lease is unmodified and
in full force and effect (or if there have been modifications that the same is
in full force as modified and stating the modifications), certifying the dates
to which the annual fixed rent and additional rent have been paid, and stating
whether or not, to Tenant's knowledge, Landlord is in default in performance of
any of its obligations under this Lease, and, if so, specifying each such
default of which Tenant may have knowledge, it being intended that any such
statement delivered pursuant hereto may be relied upon by others with whom
Landlord may be dealing.
ARTICLE 27
LEGAL PROCEEDINGS WAIVER OF JURY TRIAL
27.01 Landlord and Tenant do hereby waive trial by jury in any
action, proceeding or counterclaim brought by either of the parties hereto
against the other on any matters whatsoever arising out of or in any way
connected with this Lease, the relationship of Landlord and Tenant, Tenant's use
or occupancy of the demised premises, and/or any other claims (except claims for
bodily injury or damage to physical property), and any emergency statutory or
any other statutory remedy. It is further mutually agreed that in the event
Landlord commences any summary proceeding for non-payment of rent, Tenant will
not interpose and does hereby waive the right to interpose any counterclaim of
whatever nature or description in any such proceeding, except with respect to
compulsory counterclaims.
ARTICLE 28
SURRENDER OF PREMISES
28.01 Upon the expiration or other termination of the term of
this Lease, Tenant shall quit and surrender to Landlord the demised premises,
broom clean, in good order and condition, ordinary wear and tear and damage by
fire, the elements or other casualty excepted, and Tenant shall remove all of
its property as herein provided. Tenant's obligation to observe or perform this
covenant shall survive the expiration or other termination of the term of this
Lease.
28.02 In the event Tenant remains in possession of the demised
premises after the Expiration Date or the date of sooner termination of this
Lease,
<PAGE>
Tenant, at the option of Landlord, shall be deemed to be occupying the demised
premises as a holdover tenant from month-to-month, at a monthly rent equal to
two (2) times the higher of (x) the sum of (i) the monthly installment of fixed
annual rent payable during the last month of the term of this Lease, and (ii)
one-twelfth (1/12th) of the additional rent payable during the last year of the
term of this Lease of (y) the fair market value of the demised premises,
calculated on a monthly basis, subject to all of the other terms and obligations
of this Lease insofar as the same are applicable to a month-to-month tenancy.
ARTICLE 29
RULES AND REGULATIONS
29.01 Tenant and Tenant's servants, employees and agents shall
observe faithfully and comply strictly with the Rules and Regulations set forth
in Exhibit C attached hereto and made part hereof entitled "Rules and
Regulations" and such other and further reasonable Rules and Regulations as
Landlord or Landlord's agents may from time to time adopt provided, however,
that in case of any conflict or inconsistency between the provisions of this
Lease and of any of the Rules and Regulations as originally or as hereafter
adopted, the provisions of this Lease shall control. Reasonable written notice
of any additional Rules and Regulations shall be given to Tenant. Tenant shall
not be subject to any Rules and Regulations which are more onerous than those
imposed on any other tenant in the Building.
Nothing in this Lease contained shall be construed to impose upon
Landlord any duty or obligation to enforce the Rules and Regulations or the
terms, covenants or conditions in any other lease, against any other tenant of
the Building, and Landlord shall not be liable to Tenant for violation of the
same by any other tenant, its servants, employees, agents, visitors or
licensees.
ARTICLE 30
CONSENTS AND APPROVALS
30.01 Wherever in this Lease Landlord's consent or approval is
required, if Landlord shall delay or refuse such consent or approval, Tenant in
no event shall be entitled to make, nor shall Tenant make, any claim, and Tenant
hereby waives any claim, for money damages (nor shall Tenant claim any money
<PAGE>
damages by way of set-off, counterclaim or defense) based upon any claim or
assertion by Tenant that Landlord unreasonably withheld or unreasonably delayed
its consent or approval. Tenant's sole remedy shall be an action or proceeding
to enforce any such provision, for specific performance, injunction or
declaratory judgment. Notwithstanding the foregoing, Landlord and Tenant hereby
agree that any disputes relating to Tenant's rights to assign this Lease or
sublet the demised premises shall be resolved by expedited arbitration in
accordance with Article 38 hereof.
ARTICLE 31
NOTICES
31.01 Any notice or demand, consent, approval or disapproval, or
statement required to be given by the terms and provisions of this Lease, or by
any law or governmental regulation, either by Landlord to Tenant or by Tenant to
Landlord, shall be in writing. Unless otherwise required by such law or
regulation, such notice or demand shall be given, and shall be deemed to have
been served and given on the date of first attempted delivery, by personal
delivery, sent via Federal Express or like overnight national courier or mailed
by registered or certified mail, return receipt requested, deposited enclosed in
a securely closed post-paid wrapper, in a United States Government general or
branch post office, or official depository within the exclusive care and custody
thereof, addressed to either party, at its address set forth on page 1 of this
Lease. After Tenant shall occupy the demised premises, the address of Tenant for
notices, demands, consents, approvals or disapprovals shall be the Building.
Either party may, by notice as aforesaid, designate a different address or
addresses for notices, demands, consents, approvals or disapprovals. Copies of
notices sent by Tenant to Landlord shall be sent to Arent Fox Kintner Plotkin &
Kahn PLLC, 1675 Broadway, New York, New York 10019, Attention: Jeffrey Walker,
Esq. Copies of notices sent by Landlord to Tenant shall be sent to Kramer Levin
Naftalis & Frankel LLP, 919 Third Avenue, New York, New York 10022, Attention:
Neil Tucker, Esq.
31.02 In addition to the foregoing, either Landlord or Tenant
may, from time to time, request in writing that the other party serve a copy of
any notice or demand, consent, approval or disapproval, or statement, on one
other person or entity designated in such request, such service to be effected
as provided in Section 31.01 hereof.
<PAGE>
ARTICLE 32
NO WAIVER
32.01 No agreement to accept a surrender of this Lease shall be
valid unless in writing signed by Landlord. No employee of Landlord or of
Landlord's agents shall have any power to accept the keys of the demised
premises prior to the termination of this Lease. The delivery of keys to any
employee of Landlord or of Landlord's agent shall not operate as a termination
of this Lease or a surrender of the demised premises. In the event of Tenant at
any time desiring to have Landlord sublet the premises for Tenant's account,
Landlord or Landlord's agents are authorized to receive said keys for such
purpose without releasing Tenant from any of the obligations under this Lease.
The failure of Landlord or Tenant to seek redress for a violation by the other
party of, or to insist upon the strict performance by the other party of, any
covenant or condition of this Lease or any of the Rules and Regulations set
forth herein, or hereafter adopted by Landlord, shall not prevent a subsequent
act, which would have originally constituted a violation, from having all the
force and effect of an original violation. The receipt by Landlord, or the
payment by Tenant of rent with or without knowledge of the breach of any
covenant of this Lease shall not be deemed a waiver of such breach. The failure
of Landlord to enforce any of the Rules and Regulations set forth herein, or
hereafter adopted, against Tenant and/or any other tenant in the Building shall
not be deemed a waiver of any such Rules and Regulations. No provision of this
Lease shall be deemed to have been waived by Landlord or Tenant, unless such
waiver be in writing signed by such party. No payment by Tenant or receipt by
Landlord of a lesser amount than the monthly rent herein stipulated shall be
deemed to be other than on the account of the earliest stipulated rent, nor
shall any endorsement or statement on any check or any letter accompanying any
check or payment of rent be deemed an accord and satisfaction, and Landlord may
accept such check or payment without prejudice to Landlord's right to recover
the balance of such rent or pursue any other remedy in this Lease provided.
32.02 This Lease contains the entire agreement between the
parties, and any executory agreement hereafter made shall be ineffective to
change, modify, discharge or effect an abandonment of it in whole or in part
unless such executory agreement is in writing and signed by the party against
whom enforcement of the change, modification, discharge or abandonment is
sought.
<PAGE>
ARTICLE 33
CAPTIONS
33.01 The captions are inserted only as a matter of convenience
and for reference, and in no way define, limit or describe the scope of this
Lease nor the intent of any provision thereof.
ARTICLE 34
INABILITY TO PERFORM
34.01 If, by reason of (1) strike, (2) labor troubles, (3)
governmental pre-emption in connection with a national emergency, (4) any rule,
order or regulation of any governmental agency, (5) conditions of supply or
demand which are affected by war or other national, state or municipal
emergency, or any other cause or (6) any cause beyond Landlord's or Tenant's
reasonable control, Landlord or Tenant, as the case may be, shall be unable to
fulfill its obligations under this Lease or shall be unable to supply any
service which Landlord is obligated to supply, Landlord or Tenant, as the case
may be, shall have no liability therefor and this Lease and Tenant's obligation
to pay rent hereunder shall in no wise be affected, impaired or excused. Nothing
in the foregoing shall be deemed to permit Tenant to delay or avoid making any
payment of fixed annual rent or additional rent under this Lease as and when
such payment is due and payable. Each party shall notify the other promptly of
any event of the type described in this Section 34.01, and shall diligently work
to restore its ability to perform its obligations under this Lease.
ARTICLE 35
NO REPRESENTATIONS BY LANDLORD
35.01 Landlord or Landlord's agents have made no representations
or promises with respect to the Building or demised premises except as herein
expressly set forth.
<PAGE>
ARTICLE 36
NAME OF BUILDING
36.01 Landlord shall have the full right at any time to name and
change the name of the Building and to change the designated address of the
Building. The Building may be named after any person, firm, or otherwise,
whether or not such name is, or resembles, the name of a tenant of the Building.
ARTICLE 37
RESTRICTIONS UPON USE
37.01 It is expressly understood that no portion of the demised
premises shall be used as, by or for (i) a bank, trust company, savings bank,
industrial bank, savings and loan association or personal loan bank (or any
branch office or public accommodation office of any of the foregoing), or (ii) a
public stenographer or typist, barber shop, beauty shop, beauty parlor or shop,
telephone or telegraph agency, telephone or secretarial service, messenger
service, travel or tourist agency, employment agency, public restaurant or bar,
commercial document reproduction or offset printing service, public vending
machines, retail, wholesale or discount shop for sale of merchandise, retail
service shop, labor union, school or classroom (except for ancillary training,
provided such training does not constitute use of the demised premises as a
school or classroom under applicable zoning regulations), or governmental or
quasi-governmental bureau, department or agency, including an autonomous
governmental corporation.
ARTICLE 38
ARBITRATION
38.01 In each case specified in this Lease in which resort to
arbitration shall be required, such arbitration (unless otherwise specifically
provided in other Sections of this Lease) shall be in New York City in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association and the provisions of this Lease. The decision and award of the
arbitrators shall be in writing, shall be final and conclusive on the parties,
and counterpart copies thereof shall be delivered to each of the parties. In
rendering such decision and awards, the arbitrators shall not add to, subtract
from or otherwise modify the provisions of this Lease. Judgment may be had on
the decision and award of the arbitrators so rendered in any court of competent
jurisdiction. The prevailing party in the arbitration (as determined by the
arbitrators) shall pay the reasonable legal fees and
<PAGE>
expenses of the non-prevailing party.
ARTICLE 39
INDEMNITY
39.01 Tenant shall indemnify, defend and save Landlord its agents
and employees and any mortgagee of Landlord's interest in the Land and/or the
Building and any lessor under any superior lease harmless from and against any
liability or expense arising from the use or occupation of the demised premises
by Tenant or anyone in the demised premises with Tenant's permission, or from
any breach of this Lease by Tenant.
ARTICLE 40
MEMORANDUM OF LEASE
40.01 Tenant shall, at the request and cost of Landlord execute
and deliver a statutory form of memorandum of this Lease for the purpose of
recording, but said memorandum of this Lease shall not in any circumstances be
deemed to modify or to change any of the provisions of this Lease. In no event
shall Tenant record this Lease or a memorandum thereof.
ARTICLE 41
MISCELLANEOUS
41.01 Irrespective of the place of execution or performance, this
Lease shall be governed and construed in accordance with the laws of the State
of New York.
41.02 This Lease shall be construed without regard to any
presumption or other rule requiring construction against the party causing this
Lease to be drafted.
41.03 Except as otherwise expressly provided in this Lease, each
covenant, agreement, obligation or other provision of this Lease on Tenant's
part to be performed shall be deemed and construed as a separate and independent
<PAGE>
covenant of Tenant, not dependent on any other provision of this Lease.
41.04 All terms and words used in this Lease, regardless of the
number or gender in which they are used, shall be deemed to include any other
number and any other gender as the context may require.
41.05 Time shall be of the essence with respect to the exercise
of any option granted under this Lease.
41.06 Except as otherwise provided herein whenever payment of
interest is required by the terms hereof it shall be at the Interest Rate.
41.07 If the demised premises or any additional space to be
included within the demised premises shall not be available for occupancy by
Tenant on the specific date hereinbefore designated for the commencement of the
term of this Lease or for the inclusion of such space for any reason whatsoever,
then this Lease shall not be affected thereby but, in such case, said specific
date shall be deemed to be postponed until the date when the demised premises or
such additional space shall be available for occupancy by Tenant, and Tenant
shall not be entitled to possession of the demised premises or such additional
space until the same are available for occupancy by Tenant, provided, however,
that Tenant shall have no claim against Landlord, and Landlord shall have no
liability to Tenant by reason of any such postponement of said specific date,
and the parties hereto further agree that any failure to have the demised
premises or such additional space available for occupancy by Tenant on said
specific date or on the Commencement Date shall in no wise affect the
obligations of Tenant hereunder nor shall the same be construed in any wise to
extend the term of this Lease unless specifically provided to the contrary in
the preamble to this Lease and furthermore, this Section 41.07 shall be deemed
to be an express provision to the contrary of Section 223-a of the Real Property
Law of the State of New York and any other law of like import now or hereafter
in force.
41.08 In the event that Tenant is in arrears in payment of fixed
annual rent or additional rent hereunder, Tenant waives Tenant's right, if any,
to designate the items against which any payments made by Tenant are to be
credited, and Tenant agrees that Landlord may apply any payments made by Tenant
to any items it sees fit, irrespective of and notwithstanding any designation or
request by Tenant as to the items against which any such payments shall be
credited.
41.09 This Lease shall not be binding upon Landlord until the
<PAGE>
same is executed by Landlord and Tenant and an executed copy thereof has been
delivered to Tenant.
ARTICLE 42
SECURITY DEPOSIT
42.01 Tenant shall simultaneously upon execution of this Lease
deliver to Landlord and, shall, except as otherwise provided herein, maintain in
effect at all times during the term hereof, an irrevocable letter of credit, in
the form annexed hereto as Exhibit E and in the amount of One Million Dollars
($1,000,000.00) as security for the faithful performance and observance by
Tenant of the terms, provisions, covenants and conditions of this Lease. Such
letter of credit shall be issued by a banking corporation reasonably
satisfactory to Landlord and having its principal place of business or its duly
licensed branch or agency in the State of New York. Such letter of credit shall
have an expiration date no earlier than the first anniversary of the date of
issuance thereof and shall be automatically renewed from year to year unless
terminated by the issuer thereof by notice to Landlord given not less than
thirty (30) days prior to the expiration thereof. Except as otherwise provided
herein, Tenant shall, throughout the term of this Lease, deliver to Landlord, in
the event of the termination of any such letter of credit, replacement letters
of credit in lieu thereof (each such letter of credit and such extensions or
replacements thereof, as the case may be, is hereinafter referred to as a
"Security Letter") no later than thirty (30) days prior to the expiration date
of the preceding Security Letter. The term of each such Security Letter shall be
not less than one (1) year and shall be automatically renewable from year to
year as aforesaid. If Tenant shall fail to obtain any replacement of a Security
Letter within the time limits set forth in this Section 42.01, Landlord may draw
down the full amount of the existing Security Letter and retain the same as
security hereunder.
42.02 In the event Tenant defaults in respect to any of the
terms, provisions, covenants and conditions of this Lease after the expiration
of any notice and cure periods provided for in this Lease, including, but not
limited to, the payment of rent and additional rent, Landlord may use, apply or
retain the whole or any part of the security so deposited to the extent required
for the payment of any rent and additional rent or any other sum as to which
Tenant is in default or for any sum which Landlord may expend or may be required
to expend by reason of Tenant's default in respect of any of the terms,
provisions, covenants, and conditions of this Lease, including but not limited
to, any damages or
<PAGE>
deficiency accrued before or after summary proceedings or other re-entry by
Landlord. To insure that Landlord may utilize the security represented by the
Security Letter in the manner, for the purpose, and to the extent provided in
this Article, each Security Letter shall provide that the full amount thereof
may be drawn down by Landlord upon the presentation to the issuing bank of
Landlord's draft drawn on the issuing bank without accompanying memoranda on
statement of beneficiary, except for a certification from Landlord that Tenant
is in default beyond any applicable notice and cure periods.
42.03 In the event that Tenant defaults in respect of any of the
terms, provisions, covenants and conditions of this Lease and Landlord utilizes
all or any part of the security represented by the Security Letter but does not
terminate this Lease, Landlord may, in addition to exercising its rights as
provided in Section 42.02, retain the unapplied and unused balance of the
principal amount of the Security Letter as security for the faithful performance
and observance by Tenant thereafter of the terms, provisions, and conditions of
this Lease, and may use, apply, or retain the whole or any part of said balance
to the extent required for payment of rent, additional rent, or any other sum as
to which Tenant is in default or for any sum which Landlord may expend or be
required to expend by reason of Tenant's default in respect of any of the terms,
covenants, and conditions of this Lease. In the event Landlord applies or
retains any portion or all of the security delivered hereunder, Tenant shall
restore the amount so applied or retained within ten (10) days after demand by
Landlord so that at all times the amount deposited shall be not less than the
security required by Section 42.01 hereof.
42.04 (a) In the event that Tenant shall fully and faithfully
comply with all of the terms, provisions, covenants and conditions of this Lease
and shall not have been in default hereunder more than two (2) times in any
given year or more than five (5) times in the aggregate, the security shall be
reduced after the fifth (5th) anniversary of the Rent Commencement Date to Five
Hundred Thousand Dollars ($500,000), provided that as of such anniversary, the
"tangible net worth" (as that term is hereinafter defined) of Tenant shall equal
or exceed Fifty Million Dollars ($50,000,000) (the "Minimum Net Worth"). For
purposes of this Section 42.04, "tangible net worth" shall mean a net worth
determined under GAAP and excluding all assets which would be treated as
intangible under sound accounting principles, including but not limited to, such
items as goodwill, trademarks, copyrights and patents.
(b) In the event that Tenant shall fully and faithfully comply
with all of the terms, provisions, covenants and conditions of this lease and
shall not have been in default hereunder more than two (2) times in any given
year or more than
<PAGE>
five (5) times in the aggregate, the security shall be reduced after the seventh
(7th) anniversary of the Rent Commencement Date to Three Hundred Thousand
Dollars ($300,000) provided that as of such anniversary Tenant has the Minimum
Net Worth. Notwithstanding, anything to the contrary included elsewhere herein,
Tenant agrees that if at any time after the reduction of security pursuant to
this Section 42.04 (b) (if any) Tenant shall default under this Lease more than
two (2) times in any given year or more than five (5) times in the aggregate, or
the tangible net worth of Tenant shall be less than the Minimum Net Worth,
Tenant shall immediately upon notice from Landlord restore the security to Five
Hundred Thousand Dollars ($500,000). Tenant agrees that on each anniversary of
the date hereof, Tenant shall deliver to Landlord an unconditional audited
financial statement of Tenant for the prior year evidencing Tenant's tangible
net worth, prepared in accordance with GAAP, consistently applied from period to
period, by an independent certified public accounting firm acceptable to
Landlord (an "Acceptable Firm"). Landlord hereby agrees that
PricewaterhouseCoopers, LLP or another so- called "Big 5" accounting firm shall
be deemed acceptable to Landlord.
42.05 In the event that Tenant shall fully and faithfully comply
with all of the terms, provisions, covenants and conditions of this Lease, the
security shall be returned to Tenant within ninety (90) days after the date
fixed as the end of this Lease and after delivery of entire possession of the
demised premises to Landlord. In the event of a sale of the Land and Building or
leasing of the Building, Landlord shall transfer any interest it may have in the
Security Letter to the vendee or lessee and Landlord shall thereupon be released
by Tenant from all liability for the return of such Security Letter, provided
such vendee or lessee assumes any responsibilities of Landlord with respect to
such Security Letter, and Tenant agrees to look solely to the new landlord for
the return of said Security Letter; and it is agreed that the provisions hereof
shall apply to every transfer or assignment made of the Security Letter to a new
landlord. Tenant further covenants that it will not assign or encumber or
attempt to assign or encumber the monies deposited herein as security and that
neither Landlord nor its successors or assigns shall be bound by any such
assignment, encumbrance, attempted assignment or attempted encumbrance. In the
event of a sale of the Building Landlord shall have the right to require Tenant
to deliver a replacement Security Letter naming the new landlord as beneficiary
and, if Tenant shall fail to timely deliver the same, to draw down the existing
Security Letter and retain the proceeds as security hereunder until a
replacement Security Letter is delivered.
<PAGE>
ARTICLE 43
PARTNERSHIP
43.01 If Tenant (or any permitted assignee of Tenant from time to
time) is a partnership, the liability of each of the partners comprising the
partnership Tenant shall be joint and several. The technical dissolution of
Tenant by reason of the death, retirement, resignation, bankruptcy or
adjudication of incompetency of one or more partners, shall not affect this
Lease or the liability thereunder of the partners, and Tenant agrees that the
partnership shall nevertheless continue as Tenant with respect to the remaining
partners. Similarly, a merger or consolidation with another firm shall not be
deemed a sublease or assignment or a violation of the provisions of this Lease.
43.02 Upon execution of this Lease by Landlord and Tenant shall
promptly deliver to Landlord a list of the names and residence addresses of all
existing partners comprising the partnership Tenant. In the event Tenant admits
any new partners, Tenant agrees, within thirty (30) days thereafter, to give
notice to Landlord of that fact and of the name and residence address of each
new partner, together with such reasonable proof as Landlord shall require that
all of such new partners have in writing assumed performance of Tenant's
obligations under this Lease.
43.03 In the event of a merger or consolidation, Tenant agrees,
within thirty (30) days thereafter, to give notice to Landlord of that fact and
all of the names and residence addresses of the partners of the merged or
consolidated firm, together with such reasonable proof as Landlord shall require
that all of such partners have in writing assumed performance of Tenant's
obligations under this Lease.
ARTICLE 44
SUBLEASE
44.01 Notwithstanding anything to the contrary contained herein,
Tenant acknowledges that this Lease is a sublease of the demised premises and is
subject and subordinate to all of the terms, covenants, conditions, agreements
and provisions in the lease dated May 1, 1957 between Prudential Insurance
Company of America, as landlord and Landlord's predecessor-in-interest, as
tenant, and in the sublease dated June 27, 1958 between 500-512 Seventh Avenue
Associates, as sublessor and Landlord's predecessor-in-interest (such lease
<PAGE>
and sublease as the same has been amended and assigned are hereinafter severally
and collectively called the "Superior Documents"). Landlord warrants and
represents that nothing in the Superior Documents prohibits the making of this
Lease or the terms thereof and that the Superior Documents are in full force and
effect.
44.02 Anything in this Lease to the contrary notwithstanding, if
there exists a breach by Landlord of any of its obligations under this Lease
caused solely by a corresponding breach by the lessor under any Superior
Document of its obligations thereunder, then and in such event, Tenant's sole
remedy against Landlord in the event of any such breach of obligations under
this Lease, shall be the right to pursue a claim at Tenant's sole cost and
expense in the name of Landlord against such lessor. Landlord agrees that it
will, at Tenant's expense, cooperate with Tenant in the pursuit of such claim.
44.03 Landlord and Tenant agree that the leasehold estate created
by this Lease shall not merge with any other estate held by Landlord or an
affiliate of Landlord in the property of which the demised premises form a part
or any other interest of Landlord in the demised premises and the Building,
unless Landlord shall expressly elect to have such estates merge.
ARTICLE 45
INTENTIONALLY OMITTED
ARTICLE 46
INTENTIONALLY OMITTED
ARTICLE 47
ADDITIONAL SPACE
47.01 Effective as of February 1, 2002 or such earlier date as the Added
Space (as hereinafter defined) shall be made available for Tenant's Occupancy in
accordance with Section 2.01 above (hereinafter called the "Added Space
Inclusion Date"), there shall be added to and included in the demised premises
the remaining portion of the seventeenth (17th) floor of the Building not
<PAGE>
previously demised hereunder, as shown on the floor plan annexed hereto as
Exhibit F (such additional space is hereinafter referred to as the "Added
Space").
47.02 The inclusion of the Added Space in the demised premises shall be
subject to and in accordance with all of the terms and conditions of this Lease
as modified by the following terms and conditions, all of which shall take
effect as of the Added Space Inclusion Date:
(a) The Added Space shall be deemed added to and included in the
Demised Premises for the period beginning on the Added Space Inclusion Date and
ending on the Expiration Date.
(b) The fixed annual rent payable under provisions of Article 1
of this Lease shall be increased by the following amounts:
(i) Two Hundred Twenty-Four Thousand Three Hundred Twenty
Dollars ($224,320.00) per annum for the period beginning on the
date which is three (3) months following the Added Space
Inclusion Date and ending on the last day of the month
immediately preceding the month in which occurs the fifth (5th)
anniversary of the Rent Commencement Date;
(ii) Two Hundred Thirty-Five Thousand Five Hundred
Thirty-Six Dollars ($235,536.00) per annum for the period
beginning on the first day of the month in which occurs the fifth
(5th) anniversary of the Rent Commencement Date and ending on the
Expiration Date.
(c) Tenant's Proportionate Share, as defined in Section 3.01(b)
hereof, shall be increased from 4.35% to 5.45%;
(d) The Wage Rate Multiple set forth in Section 3.01(k) hereof
shall be increased from 22,246 to 27,854;
(e) Tenant shall be entitled to an additional Base Work Credit
and Tenant's Work Credit (as such terms are hereinafter defined), to be
distributed in accordance with Sections 50.07 and 50.08 below, in an amount
equal to $22,432 and $196,280, respectively, multiplied by a number, the
numerator of which is number of full months remaining in the Lease term through
the Expiration Date and the denominator of which is 120; and
(f) Tenant shall immediately increase the security deposited with
Landlord in accordance with Article 42 by $90,000, which such amount shall not
be subject to reduction pursuant to Section 42.04 above (so that the $500,000
and $300,000 figures set forth in Section 42.04 above shall, as of the Added
Space Inclusion Date, be deemed increased to $590,000 and $390,000,
respectively, for
<PAGE>
purposes of such Section 42.04).
47.03 Tenant agrees to accept the Added Space in its "as is" condition
and state of repair existing as of the Added Space Inclusion Date and
understands and agrees that Landlord shall perform no work and incur no cost or
expense in connection with the preparation of the Added Space for Tenant's
occupancy, except as hereinabove provided (i.e., Landlord shall perform the work
described in Section 2.01 prior to the Added Space Inclusion Date). Without
limiting the generality of the foregoing, the rent abatement provided for in
Section 1.05 hereof shall not apply with respect to the Added Space.
47.04 (a) Tenant acknowledges that the Added Space is currently occupied
and will likely continue to be occupied until the Existing Lease Expiration Date
(as hereinafter defined) Tenant shall have no claim against Landlord, and
Landlord shall have no liability to Tenant, by reason of the delivery of
possession of the Added Space to Tenant after the date set forth in Section
47.01 as intended to be the Added Space Inclusion Date. The parties hereto
further agree that the failure to have the Added Space available for occupancy
by Tenant on the date set forth in Section 47.01 as intended to be the Added
Space Inclusion Date shall in no way affect the obligations of Tenant hereunder
except as hereinafter expressly set forth, nor shall the same be construed in
any way to extend the term of this Lease. Landlord shall use reasonable efforts
to obtain and deliver possession of the Added Space to Tenant, including
commencement of summary proceedings against the tenant currently occupying the
Added Space and holding-over under expired leases. In the event Landlord fails
to deliver the Added Space to Tenant on the date set forth in Section 47.01 and
intended to be the Added Space Inclusion Date, Landlord shall not be required to
perform any of Landlord's Work on the Added Space until the Added Space is
vacant and has been delivered to Tenant and the fixed annual rent for the Added
Space not so delivered to Tenant shall abate for three (3) months following
delivery of the Added Space to Tenant, as more particularly set forth in clause
(b) (i) of Section 47.02. This Section 47.04 shall be deemed to be an express
provision to the contrary of Section 223-a of the Real Property Law of the State
of New York and any other law of like import now or hereafter in force.
(b) Notwithstanding anything to the contrary in Section
41.07 or this Article 47, if Landlord is unable, for any reason, to deliver the
Added Space to Tenant on or before July 1, 2002, then, at Tenant's option, to be
exercised by notice to Landlord given on or before July 15, 2002, Landlord's and
Tenant's obligations under this Article 47 shall terminate and the Added Space
shall not be leased to Tenant, but may be leased by Landlord to any other party,
<PAGE>
free and clear of Tenant's rights under this Article 47. Landlord represents
that the lease to the existing tenant of the Added Space is set to expire
pursuant to its terms on January 31, 2002 (the "Existing Lease Expiration
Date").
ARTICLE 48
INTENTIONALLY OMITTED
ARTICLE 49
INTENTIONALLY OMITTED
ARTICLE 50
LAYOUT AND FINISH; TENANT WORK CREDIT
50.01 Tenant hereby covenants and agrees that Tenant will, at Tenant's
own cost and expense, and in a good and workmanlike manner, make and complete
the work and installations in and to the demised premises set forth below in
such manner so that the demised premises will be tasteful and dignified
executive and administrative offices.
50.02 Tenant, at Tenant's expense, shall prepare a final plan or final
set of plans and specifications (which said plan or set of plans, as the case
may be, and specifications are hereinafter called the "final plan") which shall
contain complete information and dimensions necessary for the construction and
finishing of the demised premises. The final plan shall be submitted to Landlord
for Landlord's written approval which approval shall not be unreasonably
withheld or delayed with respect to work which is interior, non-structural and
does not adversely affect Building Systems, the exterior of the Building or any
area of the Building outside the demised premises. Landlord shall not be deemed
unreasonable in withholding its consent to the extent that the final plan
prepared by Tenant pursuant hereto involves the performance of work or the
installation in the demised premises of materials or equipment which do not
equal or exceed the standard of quality of Building Standard installations.
Tenant shall reimburse Landlord promptly upon demand for any reasonable,
out-of-pocket costs and expenses incurred by Landlord in connection with
Landlord's review of the final plan. Landlord agrees to respond to Tenant's
initial request for approval of the final plan within fifteen (15) Business Days
and to Tenant's request for modifications thereof or changes thereto
<PAGE>
within ten (10) Business Days, following Tenant's request therefor.
50.03 In substantial accordance with the final plan, Tenant, at Tenant's
expense, will make and complete in and to the demised premises the work and
installations including, without limitation, renovation of the common area
(including the common area bathrooms) on the 16th Floor of the Building (despite
the fact that Tenant is not initially occupying the entire 16th Floor hereunder)
(hereinafter collectively called "Tenant's Work") specified in the final plan.
Tenant agrees that Tenant's Work will be performed with the least possible
disturbance to the occupants of other parts of the Building and to the
structural and mechanical parts of the Building as is reasonably possible, and
Tenant will, at its own cost and expense, leave all structural and mechanical
parts of the Building which shall or may be affected by Tenant's Work in good
and workmanlike operating condition. Tenant, in performing Tenant's Work will,
at its own cost and expense, promptly comply with all laws, rules and
regulations of all public authorities having jurisdiction in the Building with
reference to Tenant's Work. If any act or omission of Tenant or its general
contractor, subcontractors or agents render the Building of which the demised
premises are a part liable to any mechanic's lien or other lien and if any such
lien or liens be filed against the Building of which the demised premises are a
part, or against Tenant's Work, or any part thereof, Tenant will, at Tenant's
own cost and expense, promptly remove the same of record, by payment or bonding,
within thirty (30) days after the filing of such lien or liens; or in default
thereof, Landlord may cause any such lien or liens to be removed of record by
payment of bond or otherwise, as Landlord may elect, and Tenant shall reimburse
Landlord for all costs and expenses incidental to the removal of any such lien
or liens incurred by Landlord. Tenant shall indemnify and save harmless Landlord
of and from all claims, counsel fees, loss, damage and expenses whatsoever by
reason of any liens, charges or payments of any kind whatsoever that may be
incurred or become chargeable against Landlord or the Building of which the
demised premises are a part, or Tenant's Work or any part thereof, by reason of
any work done or to be done or materials furnished or to be furnished to or upon
the demised premises in connection with Tenant's Work. Tenant hereby covenants
and agrees to indemnify and save harmless Landlord of and from all claims,
counsel fees, loss, damage and expenses whatsoever by reason of any injury or
damage, howsoever caused, to any person or property occurring prior to the
completion of Tenant's Work or occurring after such completion, as a result of
anything done or omitted in connection therewith or arising out of any fine,
penalty or imposition or out of any other matter or thing connected with any
work done or to be done or materials furnished or to be furnished in connection
with Tenant's Work. At any and all times during the progress of Tenant's Work,
Landlord shall be entitled to have a representative or representatives on the
site to inspect Tenant's Work and
<PAGE>
such representative or representatives shall have free and unrestricted access
to any and every part of the demised premises upon reasonable notice and
provided such access shall not unduly disrupt Tenant's Work. Tenant shall advise
Landlord in writing of Tenant's general contractor who is to do Tenant's Work,
and such general contractor shall be subject to Landlord's prior written
approval, which shall not be unreasonably withheld or delayed; such contractor
shall, to the extent permitted by law, use subcontractors and employees for
Tenant's Work who will work harmoniously with other employees on the job.
Notwithstanding the foregoing, Tenant shall use the life safety system
subcontractor designated by Landlord (and charging commercially competitive
rates) to perform any work to connect Tenant's installations to the Building's
life safety system.
50.04 Tenant shall, at Tenant's sole cost and expense, file all
necessary architectural plans and obtain all necessary approvals and permits in
connection with Tenant's Work being performed by it pursuant to this Article 50.
Tenant shall submit to Landlord Tenant's final plans for Landlord's review no
later than May 30, 2000.
50.05 The following conditions shall also apply to Tenant's Work:
(i) all Tenant's Work shall be of material, manufacture,
design, capacity and color at least equal to the standard adopted by Landlord
for the Building (hereinafter called "Building Standard");
(ii) Tenant, at Tenant's expense, shall (i) file all
required architectural, mechanical and electrical drawings and obtain all
necessary permits, and (ii) furnish and perform all engineering and engineering
drawings in connection with Tenant's Work. Tenant shall obtain Landlord's
approval of the drawings referred to in (i) and (ii) hereof, which approval
shall not be unreasonably withheld or delayed;
(iii) Tenant shall use an engineer reasonably approved by
Landlord with respect to the preparation of Tenant's engineering drawings for
Tenant's Work;
(iv) All of the provisions of Articles 6 and 8 hereof
shall apply to Tenant's performance of Tenant's Work; and
(v) Tenant's Work shall be completed no later than October
31, 2000 subject to delays beyond Tenant's control.
<PAGE>
50.06 Tenant agrees to install the Units (as defined in Section 21.05)
as part of Tenant's Work and to perform all work necessary to upgrade the
restrooms on the sixteenth (16th) and seventeenth (17th) floors of the Building
on which the demised premises are located, in compliance with the Building
Standards and all legal requirements (collectively, the "Base Work"). Landlord
shall allow Tenant a credit not to exceed the amount of One Hundred Seventy-Two
Thousand Five Hundred Forty-Six Dollars ($172,546.00) (hereinafter called the
"Base Work Credit"), which credit shall be applied solely against the cost and
expense incurred in connection with the Base Work. In the event that the cost
and expense of the Base Work shall exceed the amount of the Base Work Credit,
Tenant shall be entirely responsible for such excess. In the event that the cost
and expense of Base Work shall be less than the amount of the Base Work Credit,
then the amount of the Base Work Credit shall be reduced accordingly.
50.07 Landlord shall allow Tenant a credit not to exceed the amount of
Seven Hundred Seventy-Eight Thousand Six Hundred Ten Dollars ($778,610.00)
(hereinafter called the "Tenant's Work Credit"), which credit shall be applied
solely against the cost and expense incurred in performing Tenant's Work other
than the Base Work. In the event that the cost and expense of the Tenant's Work
(exclusive of the Base Work) shall exceed the amount of Tenant's Work Credit,
Tenant shall be entirely responsible for such excess. In the event that the cost
and expense of Tenant's Work (exclusive of the Base Work) shall be less than the
amount of Tenant's Work Credit, then the amount of Tenant's Work Credit shall be
reduced accordingly.
50.08 (a) Provided Tenant shall not be in default under the terms
of this Lease beyond applicable notice and cure periods, Landlord hereby agrees
to make periodic payments of up to ninety (90%) of the Tenant's Work Credit
and/or the Base Work Credit to Tenant as Tenant's Work and the Base Work,
respectively, progresses, in accordance with the terms and conditions
hereinafter set forth (the "Work Payment Conditions") in this subsection (a).
Tenant shall submit to Landlord from time to time, but not more often than once
per month, requisitions (herein referred to as "Tenant's Request") for such
periodic payment with respect to the portion(s) of Tenant's Work and the Base
Work performed subsequent to the immediately preceding Tenant's Request (if
any), together with the following:
(i) copies of invoices from the contractors and
subcontractors who performed the portions of Tenant's Work and the Base Work
referred to in such Tenant's Request, and from the materialmen and suppliers who
supplied the materials and supplies referred to in such Tenant's Request;
<PAGE>
(ii) a certificate from Tenant's architect or general
contractor or construction manager that (1) such portion of the Tenant's Work
and the Base Work , as applicable, has been substantially completed in
accordance with the final plan and revisions thereto theretofore approved by
Landlord; and (2) there are no uncured violations of record as a result of such
portion of the Tenant's Work or the Base Work, as applicable; and
(iii) lien waivers from Tenant's general contractor and
construction manager, and each major (for purposes hereof, a major shall be
deemed to mean a subcontractor, materialman or supplier under contract in an
amount in excess of $10,000.00) subcontractor, materialman and supplier to the
extent of the amount paid to such parties through the requisition preceding such
Tenant's Request.
Promptly following any Tenant's Request together with the aforesaid
accompanying documentation, Landlord shall have the right to enter the demised
premises for the purpose of verifying that such portion of Tenant's Work and the
Base Work covered by Tenant's Request has been performed substantially in
accordance with the Tenant's Plans and revisions thereto theretofore approved by
Landlord. If the Work Payment Conditions have been satisfied, then within thirty
(30) days after Landlord's receipt of Tenant's Request, together with the
accompanying documentation, Landlord shall pay to Tenant the amount shown on the
"Current Payment Due" on the Tenant's Request. The balance of the Tenant's Work
Credit and/or the Base Credit, if any, after the completion of Tenant's Work and
the Base Work, respectively, shall be paid to Tenant in accordance with the
terms and conditions set forth in paragraph (b) below.
(b) Subject to the provisions of this Section, Landlord
hereby agrees to pay the balance of the Tenant's Work Credit and/or the Base
Work Credit, in accordance with the terms and conditions hereinafter in this
subsection (b) (the "Final Work Payment Conditions"). After the completion of
the Tenant's Work and the Base Work, Tenant shall submit to Landlord a
requisition (herein referred to as the "Final Request") for the balance of the
Tenant's Work Credit and/or the Base Work Credit, together with the following:
(i) a certificate from Tenant's architect or general
contractor or construction manager that (1) all Tenant's Work and the Base Work
has been completed in substantial accordance with the final plans and revisions
thereto theretofore approved by Landlord; (2) there are no uncured violations of
record, as a result of any of the Tenant's Work or Base Work; and all Tenant's
Work and the Base Work has been paid for in full;
<PAGE>
(ii) a general release and lien waivers from Tenant's
general contractor, and each major subcontractor, materialman and supplier and
any other lien waiver Tenant has received in connection with Tenant's Work and
the Base Work;
(iii) copies of all New York City Building Department and
New York City Fire Department sign-offs, inspection certificates and/or
self-certifications by Tenant's subcontrators and/or any permits required to be
issued by any governmental entity having jurisdiction thereover to the extent
required to permit the lawful occupancy of the demised premises by Tenant; and
(iv) two (2) copies of CAD "as built" plans of the demised
premises, or if Tenant has not had such CAD "as builts" prepared, the final plan
as finally approved by Landlord and filed with the New York City Department of
Buildings, legibly marked with all field changes made during the performance of
Tenant's Work and Base Work (other than de minimis changes) and certified by
Tenant's architect as containing all such field changes.
(c) Promptly following the Final Request together with the
aforesaid accompanying documentation, Landlord shall have the right to enter the
demised premises for the purpose of verifying that all of the Tenant's Work and
the Base Work has been completed and performed substantially in accordance with
the final plan and revisions thereto theretofore approved by Landlord. If the
Final Work Payment Conditions have been satisfied, then within thirty (30) days
after Landlord's receipt of the Final Request together with the accompanying
documentation, Landlord shall pay to Tenant the balance of the Tenant's Work
Credit and/or the Base Credit.
50.09 Tenant acknowledges that as of the date hereof there are
separate Class E systems and sprinkler risers for the Building and that certain
building known and located at 500 Seventh Avenue, New York, New York (the "500
Building"). Tenant further acknowledges that during the term of this Lease,
Landlord in its sole election, may combine the lobbies of the Building and the
500 Building Landlord into a single lobby in a location on the street level to
be selected by Landlord, in its sole discretion, and unify the Class E systems
for the Building. In the event Landlord shall elect to combine the lobbies of
the Building and the 500 Building and unify the Class E systems, then Tenant
shall make all necessary modifications and install all necessary devices within
the demised premises to comply with applicable laws and regulations. Landlord
shall reimburse Tenant for any reasonable actual out-of-pocket expenses to
modify the Class E systems in the demised
<PAGE>
premises incurred by Tenant as a result of Landlord's combining such lobbies and
unifying the Class E system of the Building and the 500 Building. In connection
with the performance of Tenant's Work, Landlord shall provide to Tenant a
reasonable number of connection points (at least one connection point on every
third (3rd) floor of the Building) to the Building's fire safety system to which
it may connect its smoke detectors and other life safety and security devices in
the demised premises to comply with the applicable laws, including, without
limitation, New York City local law; provided, however, Tenant shall solely be
responsible for the cost of making such connection.
* * * *
[The remainder of this page is left intentionally blank;
the signature page follows.]
<PAGE>
IN WITNESS WHEREOF, Landlord and Tenant have respectively
executed this Lease as of the day and year first above written.
LANDLORD:
500-512 SEVENTH AVENUE LIMITED PARTNERSHIP
By: 500-512 ArCap LLC
By: Archon Capital, L.P.
By: WH MezzCo GP, L.L.C., its General
Partner
By: /s/ Illegible
---------------------------------
Name:
Title:
By: GS MezzCo GP, L.L.C., its General
Partner
By: /s/ Robert Christie
---------------------------------------
Name: Robert Christie
Title:
<PAGE>
TENANT:
THCG, INC.
By: /s/ Evan M. Marks
---------------------------
Name: Evan M. Marks
Title: EVP
Tenant's Tax Identification Number is 87-04 15597
<PAGE>
