Additional Building. As of the Effective Date, Lessor and Lessee hereby agree that the Lease shall be amended to delete all references to the “Additional Building” and that neither Lessee nor the Lessor shall have any further rights or obligations with respect to the Additional Building under this Lease. In particular, the Lease shall be specifically amended as follows: (a) Section 15 - The words “or within the Additional Building” contained in the third (3rd) line from the bottom of the first (1st) full paragraph of such Section are hereby deleted in their entirety. (b) Section 24(A) - The words “and leasing and development of the Additional Building” in the seventeenth (17th) line from the bottom of the paragraph on page 22 of the Lease are hereby deleted in their entirety. In addition, the words “costs attributable to the Additional Building if said Additional Building is not on a parcel which is subdivided from the Premises;” and the words “and any costs associated with the development of the Additional Building, including costs which relate to the Demised Premises, but would not have been incurred but for the development of the Additional Building;” contained on the top of page 23 are hereby deleted in their entirety and the Lessor and Lessee agree that Lessee shall not be obligated to pay any Building Operating Costs or costs of any nature whatsoever, including but not limited to the site improvement work to be completed on the Demised Premises or the Additional Building lot in accordance with the terms of that certain construction agreement dated June 7, 2002 between the current Lessor and the contract purchaser of the Demised Premises, DB Real Estate One Campus Drive, L.P. (“Purchaser”), attributable to the Additional Building. (c) Section 25 - Section 25(G) of the Lease is hereby deleted in its entirety and is replaced with the words “Intentionally Deleted.” The Lot on which the Additional Building is located is a separate tax lot and will be separately assessed for real estate tax purposes. Lessor and Lessee agree that Lessee shall not be obligated to pay any Real Estate Taxes, Water or Sewer Rents or any other charges pursuant to Article 25, or elsewhere, in the Lease, related to the lot on which the Additional Building is located. (d) Section 36 - Section 36 of the Lease is hereby amended by deleting the second sentence of such Section in its entirety. (e) Section 38 - The words “and Lessee’s leasing of the Additional Building pursuant to Section 57 hereof in the last line of Section 38 are hereby deleted in their entirety. (f) Section 56 - Section 56 (Additional Building) is hereby deleted in its entirety and is hereby replaced with the words “Intentionally Deleted.” (g) Section 57 - Section 57 (Right of First Offer) is hereby deleted in its entirety and is hereby replaced with the words “Intentionally Deleted.”
Appears in 1 contract
Sources: Lease (Realogy Corp)
Additional Building. As (a) Tenant shall have the right to further develop the Land by the construction of a building on all or a portion of the Effective parking area set forth on Exhibit C, in which event the option to lease the Additional Lands shall be exercised, and if not previously improved as a parking facility, shall be so improved and used to provide an additional parking area for Tenant's use.
(b) At such time as Tenant desires to further develop the Land as aforesaid, it shall notify Landlord, it being acknowledged that Tenant contemplates the construction of an additional building of like kind ("Additional Building"), the square footage of which shall not be less than fifty-five thousand (55,000) square feet and shall be attached to the existing Building ("Notice of Additional Building"). Simultaneously therewith, Tenant shall deliver to Landlord its Notice of Additional Lands, if it has not previously delivered such Notice. Following the delivery of the Notice of Additional Building, Landlord and Tenant shall proceed diligently and in good faith to establish an estimated Additional Building Delivery of Possession Date (as hereinafter defined in subparagraph 50(d)) and agree on the size, location, design, plans, specifications, time frame and all other matters relevant to the construction of the Additional Building, excluding the development of the Additional Lands as a parking area ("Additional Building Plans"), together with the plans, specifications and costs of the Additional Lands parking facility, pursuant to Paragraph 49 hereof. If the estimated Additional Building Delivery of Possession Date will occur after the commencement of the sixth (6th) Lease Year, then Tenant shall be required to exercise the first and/or the second Renewal Terms so that the Term of the Lease following such Additional Building Delivery of Possession Date will equal at least fifteen (15) years. In the event Tenant is required to exercise the first and/or the second Renewal Terms, then concurrently with Landlord and Tenant establishing the Additional Building Plans, Landlord and Tenant shall agree upon the Fixed Rent to be paid during the first and/or the second Renewal Terms, as the case may be. To the extent the estimated Additional Building Delivery of Possession Date will occur after the commencement of the sixteenth (16th) Lease Year, Landlord agrees to extend the Term of the second Renewal Term so that the Term of the lease following such Additional Building Delivery of Possession Date will equal fifteen (15) years. The price per square foot of said Additional Building, exclusive of the cost of developing the Additional Lands as a parking area and exclusive of land costs but inclusive of all hard and soft costs in the aggregate shall equal Eighty-Five ($85.00) Dollars per square foot, as such amount may be adjusted by the percentage increase or decrease in the Construction Index as defined in subparagraph 41(e) occurring between the date hereof and the Construction Index for the month in which Tenant delivers to Landlord the Notice of Additional Building, plus the costs to Landlord in the demolition of such portion of the parking area as may be necessary in the construction of the Additional Building. Landlord shall allocate the aggregate cost, determined as provided above, between hard and soft costs, and shall so notify Tenant within thirty (30) days of the date after which the parties shall have agreed on the Additional Building Plans. Should Tenant disagree with the Landlord cost estimate, Tenant shall be free to obtain and submit to Landlord bids for hard costs only from not more than three (3) mutually agreeable independent contractors (which may not be an Affiliate of Tenant) (herein "Third Party bids"). Tenant shall submit such bid(s), if at all, within ninety (90) days of Tenant's receipt of Landlord's cost determination. Upon receipt of the Third Party bid(s) for the Additional Building Plans from Tenant, Landlord shall have the right to elect to either (a) match the lowest Third Party bid, or (b) enter into a contract with the lowest Third Party bidder for said bid price plus a sum equal to the soft costs as hereinabove provided, and reduce its hard cost price per square foot to the hard cost price charged it by said contractor. Upon Tenant's receipt of Landlord's cost estimate, or upon notification of Landlord's election under (a) or (b) above, whichever is later, Tenant shall have the right to rescind its Notice of Additional Building within thirty (30) days thereafter upon notice to Landlord and Tenant's agreement to reimburse Landlord for Landlord's actual costs incurred in preparing the Additional Building Plans and the bid documents which payment shall be made by Tenant to Landlord within thirty (30) days of Landlord's demand therefor, accompanied by documentation in reasonable detail, which payment shall be deemed to constitute Additional Rental hereunder. Any delay or failure by the parties in reaching agreement on the Additional Building Plans shall not affect Tenant's right to lease the Additional Lands pursuant to this lease.
(c) If Tenant shall exercise its option to construct the Additional Building at any time after the Sixth Lease Year, then Tenant shall reimburse Landlord and/or Ground Lessor for all environmental compliance costs required by DEP in connection with the soil treatment and removal in connection with such construction.
(d) Upon delivery of possession by Landlord of the Additional Building and Additional Lands, as determined pursuant to subparagraphs 3(a), 3(c), 3(g) and 3(m) ("Additional Building Delivery of Possession Date"), the Annual Fixed Rent hereunder shall be increased ("Additional Building Fixed Rent") as of the Additional Building Delivery of Possession Date by the Annual Additional Building Fixed Rent determined in the following manner: The square footage of the Additional Building, based upon outside measurements; multiplied by the cost per square foot of the Additional Building determined in subparagraph (b) above (exclusive of the Land); multiplied by a rate equal to the 20-year United States Treasury Bill interest rate, as of the Addi▇▇▇▇al Building Delivery of Possession Date, Lessor and Lessee hereby agree that plus four (4) percentage points; plus an amount equal to the Lease real estate commission to be paid in connection with such leasing;and the annual Additional Building Fixed Rent per square foot shall be amended to delete all references the annual Additional Building Fixed Rent divided by the square footage of the Additional Building. By way of example, if the square footage of the Building is fifty-five thousand (55,000) square feet; the cost per square foot is Eighty-Five ($85.00) Dollars; the Treasury Bill interest rate is six and one-▇▇▇▇ (6.5%) percent; and the real estate commission is $.25 per square feet of Additional Building; then the Additional Building Fixed Rent shall be as follows: 55,000 x 85 = 4,675,000 x (6.5% + 4%) 10.5% = 490,875 + (55,000 x 25(cent)) (13,750) = $504,625 and the annual Additional Building Fixed Rent per square foot shall be 504,625 / 55,000 = $9.18. The Additional Building Fixed Rent shall increase at the rate of twenty-five (25(cent)) cents per square foot at the commencement of each fifth anniversary of the Additional Building Delivery of Possession Date, including any Renewal Terms, if applicable.
(e) Upon the Additional Building Delivery of Possession Date, the Additional Building and Additional Lands, to the “extent applicable, shall be deemed to be part of the Premises leased to Tenant pursuant to this lease, in the same manner as if the Additional Building” Building and that neither Lessee nor Additional Lands were part of the Lessor Premises leased to Tenant as of the Commencement Date, including without limitation, the respective obligations of Landlord and Tenant for repair and maintenance hereunder, the Tenant obligations of insurance and the rights of Tenant to purchase the Premises and/or to extend the Term hereunder.
(f) If Tenant shall fail to exercise its option to lease the Additional Lands, Tenant shall have any no further rights or obligations with respect to the Additional Building under this Lease. In particular, the Lease shall be specifically amended as follows:
(a) Section 15 - The words “Lands or within the Additional Building” contained in the third (3rd) line from the bottom of the first (1st) full paragraph of such Section are hereby deleted in their entirety.
(b) Section 24(A) - The words “and leasing and development of the Additional Building” in the seventeenth (17th) line from the bottom of the paragraph on page 22 of the Lease are hereby deleted in their entirety. In addition, the words “costs attributable to the Additional Building if and Landlord shall have the right to proceed to subdivide or to modify its subdivision, so as to cause the Premises to constitute one (1) subdivided lot, separate and apart from the Additional Lands and to cause the Premises to constitute a separate municipal tax lot. Until said subdivision occurs the Landlord shall be obligated for all Taxes attributable to said Additional Building is not on a parcel which is subdivided from the Premises;” Lands and the words “and any costs associated with the development of the Additional Building, including costs which relate to the Demised Premises, but would not have been incurred but for the development of the Additional Building;” contained on the top of page 23 are hereby deleted in their entirety and the Lessor and Lessee agree that Lessee Paragraph 19 shall not be obligated to pay any Building Operating Costs or costs of any nature whatsoever, including but not limited to the site improvement work to be completed on the Demised Premises or the Additional Building lot in accordance with the terms of that certain construction agreement dated June 7, 2002 between the current Lessor and the contract purchaser of the Demised Premises, DB Real Estate One Campus Drive, L.P. (“Purchaser”), attributable to the Additional Buildingmodified accordingly.
(c) Section 25 - Section 25(G) of the Lease is hereby deleted in its entirety and is replaced with the words “Intentionally Deleted.” The Lot on which the Additional Building is located is a separate tax lot and will be separately assessed for real estate tax purposes. Lessor and Lessee agree that Lessee shall not be obligated to pay any Real Estate Taxes, Water or Sewer Rents or any other charges pursuant to Article 25, or elsewhere, in the Lease, related to the lot on which the Additional Building is located.
(d) Section 36 - Section 36 of the Lease is hereby amended by deleting the second sentence of such Section in its entirety.
(e) Section 38 - The words “and Lessee’s leasing of the Additional Building pursuant to Section 57 hereof in the last line of Section 38 are hereby deleted in their entirety.
(f) Section 56 - Section 56 (Additional Building) is hereby deleted in its entirety and is hereby replaced with the words “Intentionally Deleted.”
(g) Section 57 - Section 57 (Right of First Offer) is hereby deleted in its entirety and is hereby replaced with the words “Intentionally Deleted.”
Appears in 1 contract
Sources: Lease Agreement (Di Giorgio Corp)