Exhibit 10.1.8
Conformed Copy
SUBLEASE AGREEMENT BETWEEN
ARCH INSURANCE COMPANY, AS SUBLANDLORD
AND
BROOKFIELD PROPERTIES OLP CO. LLC, AS SUBTENANT
THIS SUBLEASE AGREEMENT (this
“ Sublease ”) is made as of the 21
st day of July, 2008, by and between ARCH
INSURANCE COMPANY, a Missouri corporation, having an office at One
Liberty Plaza, 165 Broadway, New York, New York 10006 (“
Sublandlord ”), and BROOKFIELD PROPERTIES OLP CO. LLC,
a Delaware limited liability company, having an office c/o
Brookfield Financial Properties, L.P., Three World Financial
Center, 200 Vesey Street, 11th Floor, New York, New York 10281-1021
(“ Subtenant ”).
W I T N
E S S E
T H
WHEREAS:
A.
By lease dated September 26,
2002 (the “ Original Overlease ”), as amended by
that certain First Lease Modification Agreement (the “
First Modification ”) dated as of May 7, 2003,
that certain Second Lease Modification Agreement (the “
Second Modification ”) dated as of July 31, 2003,
that certain Third Lease Modification Agreement (the “
Third Modification ”) dated as of February 18,
2004, that certain Fourth Lease Modification Agreement (the “
Fourth Modification ”) dated as of May 13, 2004,
that certain Substitution of Storage Space Agreement (the “
Storage Substitution Agreement ”) dated as of
September 30, 2004, that certain Fifth Lease Modification
Agreement dated as of December 15, 2005 (the “ Fifth
Modification ”) and that certain Sixth Lease Modification
Agreement dated as of March 29, 2007 (the “ Sixth
Modification ”) and as the same is concurrently herewith
being amended pursuant to the Consent and Seventh Modification (as
such term is defined in paragraph C below; such lease, as the
same
has been, is being and may hereafter be further
amended, being hereinafter called the “ Overlease
”), Brookfield Properties OLP Co. LLC, formerly known as BFP
One Liberty Plaza Co. LLC (“ Overlandlord ”)
leased to Sublandlord certain space consisting of the entire
rentable area of each of the sixteenth (16th), seventeenth (17th)
and fifty-third (53rd) floors and certain storage space located on
the concourse level (collectively, the “ Leased Space
”) in the building known as One Liberty Plaza, New York, New
York (the “ Building ”) in accordance with the
terms of the Overlease. A complete copy of the Overlease has
been delivered to each of Sublandlord and Subtenant, the receipt of
which is hereby acknowledged by each of Sublandlord and
Subtenant.
B.
Sublandlord and Subtenant desire to
consummate a subleasing of a portion of the Leased Space on the
terms and conditions contained in this agreement (this “
Sublease ”).
C.
Overlandlord and Sublandlord (as
Tenant under the Overlease) are concurrently herewith entering into
that certain Consent to Sublease, Non-Disturbance Agreement and
Seventh Lease Modification Agreement (the “ Consent and
Seventh Modification ”), providing for, inter
alia, Overlandlord’s consent to this Sublease,
Overlandlord’s recognition of Subtenant and certain
modifications of the Overlease in connection herewith.
NOW, THEREFORE, in consideration of
the mutual covenants and agreements hereinafter contained, it is
hereby agreed as follows:
1.
Term; Rent
.
1.1
Sublandlord hereby leases to
Subtenant and Subtenant hereby hires from Sublandlord the entire
rentable area of each of the sixteenth (16th) and seventeenth
(17th) floors of the Building (comprising a portion of the Leased
Space and which Sublandlord and Subtenant hereby agree for purposes
of this Sublease shall be deemed to contain 44,514 rentable square
feet each or 89,028 rentable square feet in the aggregate),
approximately as shown on the applicable
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floor plans annexed to the Second Modification,
the Third Modification, the Fifth Modification and the Sixth
Modification (collectively, the “ Premises ”),
for a term (the “ Sublease Term ”) commencing at
12:01 A.M. EST on the Sublease Commencement Date (as such term
is hereinafter defined) and ending at 11:00 P.M. EST on
January 31, 2014 or on such earlier date upon which the
Sublease Term shall terminate pursuant to any conditions or
covenants of this Sublease or pursuant to law (the “
Sublease Expiration Date ”), at an annual fixed rent
(“ fixed rent ”) at the rate of Four Million
Ninety-Five Thousand Two Hundred Eighty-Eight and 00/100
($4,095,288.00) Dollars per annum, to be paid in equal monthly
installments of Three Hundred Forty-One Thousand Two Hundred
Seventy-Four and 00/100 ($341,274.00) Dollars each in advance, on
the first day of each month during the Sublease Term, without any
set-off, offset, abatement or reduction whatsoever, except as
otherwise provided herein or in any provision of the Overlease, as
incorporated herein. As used herein, the term “
Sublease Commencement Date ” shall mean March 17,
2009 (the “ Anticipated Sublease Commencement Date
,” which date shall be subject to extension in accordance
with the provisions of Section 4.2(d) hereof) or such
earlier date (the “ Accelerated Sublease Commencement
Date ”) as Sublandlord may elect by written notice (the
“ Sublease Commencement Date Acceleration Notice
”) given to Subtenant not less than thirty (30) days prior to
such Accelerated Sublease Commencement Date, provided, however,
that the Accelerated Sublease Commencement Date shall not occur
earlier than January 1, 2009. Notwithstanding anything
to the contrary contained herein, if for any reason whatsoever,
Sublandlord shall be unable to deliver possession of the Premises
to Subtenant on or before the Anticipated Sublease Commencement
Date or any Accelerated Sublease Commencement Date (as the case may
be), subject to Subtenant’s remedies with respect to such
late delivery as expressly set forth in this Sublease, the term of
the Sublease shall commence on,
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and the Sublease Commencement Date shall be, the
date on which Sublandlord actually delivers possession of the
Premises to Subtenant in accordance with the terms of this
Sublease. The date upon which Sublandlord actually delivers
possession of the entire Premises to Subtenant in accordance with
the terms of this Sublease is hereinafter called the “
Actual Sublease Commencement Date ”. Sublandlord
and Subtenant shall, at the request of either party, execute,
acknowledge and deliver to each other an instrument substantially
in the form of Exhibit B annexed hereto (a “ Sublease
Commencement Date Agreement ”) confirming the Actual
Sublease Commencement Date; provided, however, that the failure of
either party to request or to execute, acknowledge and deliver such
instrument shall have no effect whatsoever on the occurrence of the
Actual Sublease Commencement Date.
1.2
Notwithstanding the provisions of
Section 1.1 above, the fixed rent payable by Subtenant
hereunder shall be abated during six (6) month period
commencing on the Sublease Commencement Date.
2.
Assignment and
Subletting .
2.1
Notwithstanding anything to the
contrary set forth in the Overlease, Subtenant shall have the
unqualified and unrestricted right, without Sublandlord’s
consent or approval and without the application of Sections 7.07
through 7.15 of the Overlease, to (a) assign or transfer this
Sublease or any interest therein, (b) permit this Sublease to
be assigned by operation of law or otherwise, (c) further
lease all or any part of the Premises, (d) permit the Premises
or any desk space therein to be occupied by persons other than
Subtenant, or (e) pledge or encumber this Sublease, the term
and estate hereby granted or the rentals hereunder. Any
assignment or further leasing and the use of the Premises by
Subtenant or by any assignee or further tenant of Subtenant, or by
anyone else claiming by, through or under Subtenant, may be for any
purpose or purposes that Subtenant, in Subtenant’s sole
discretion, shall deem suitable or
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appropriate and shall be on such terms and at
such rental rates as Subtenant, in Subtenant’s sole
discretion, shall deem appropriate (it being acknowledged and
agreed by Sublandlord that Subtenant shall have the right to
further lease the Premises to a third party for a term that extends
beyond the Sublease Expiration Date and, in such event, any
continued occupancy of the Premises by such third party beyond
11:00 P.M. EST on the Sublease Expiration Date shall not be
deemed a holdover or other default under this Sublease, and
Sublandlord hereby consents to such continued occupancy without any
charge to such third party). In no event shall Sublandlord be
entitled to any consideration or payment from Subtenant (or from
any assignee or further tenant of Subtenant) in connection with any
assignment of this Sublease or further leasing of the Premises,
including, without the limitation, payment of any portion of any
profits realized by Subtenant or by any assignee or further tenant
of the Premises in connection therewith.
2.2
In the event that Subtenant shall
enter into a further lease with a tenant covering the Premises or a
portion thereof, upon Subtenant’s request, Sublandlord shall
enter into a non-disturbance agreement (a “
Non-Disturbance Agreement ”) with such tenant in the
form annexed hereto as Exhibit C, agreeing to recognize such
tenant under the provisions set forth in such Non-Disturbance
Agreement (provided however that, except in connection with the
Non-Disturbance Agreement to be entered into with Cleary (as
hereinafter defined), (x) such Non-Disturbance Agreement shall
be modified as appropriate to replace the references to Cleary with
references to such tenant and (y) the provisions of paragraphs
5, 6 and 7 and Exhibit A of such form of Non-Disturbance
Agreement shall be deleted or modified if not applicable).
Sublandlord shall execute any such Non-Disturbance Agreement and
deliver same to Subtenant and such tenant concurrently with the
execution of such lease by Subtenant and such tenant.
Sublandlord shall make such modifications to any such
Non-Disturbance Agreement as such tenant may
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reasonably request, provided that such
modifications do not materially decrease any rights or benefits or
materially increase any obligations of Sublandlord hereunder.
Without limiting the generality of the foregoing, Sublandlord
hereby acknowledges that Subtenant is concurrently herewith
entering into an agreement with Cleary, Gottlieb, Steen &
Hamilton LLP (“ Cleary ”) pursuant to which
Subtenant shall lease the Premises to Cleary for a term commencing
on or immediately following the Sublease Commencement Date (such
agreement being hereinafter called the “ Cleary
Agreement ”)