Document:

Exhibit
10.2

Execution Copy

 

 

THE
FIRST MARBLEHEAD CORPORATION

TERMINATION
AGREEMENT

 

This Termination
Agreement dated as of November 3,
2004 (the “Agreement”) is entered into by and among the undersigned holders
(the “Holders”) of shares of common stock, $.01 par value per share (the “Common
Stock”), of The First Marblehead Corporation, a Delaware corporation (the “Company”).

RECITALS

A.            The Company, the Holders and certain other
shareholders of the Company are parties to the Shareholders Agreement dated as
of December 21, 1995 (the “Shareholders Agreement”) setting forth various
agreements with respect to the ownership and transfer of shares of Common Stock
and other related matters.

B.            The Company completed an initial public offering of
shares of Common Stock on November 5, 2003, making certain of the agreements in
the Shareholders Agreement unnecessary, burdensome or inappropriate for
stockholders of a public company.

C.            Except for affiliates of the Company, including the
Holders, the parties to the Shareholders Agreement are eligible to sell their
shares of Common Stock in reliance on Rule 144(k) or Rule 701 under the
Securities Act of 1933, as amended (the “Securities Act”).

D.            Upon termination of the Shareholders Agreement, the
Company has agreed to enter into a registration rights agreement (the “Registration
Rights Agreement”) providing the Holders with certain rights with respect to
the registration of their shares of Common Stock under the Securities Act.

E.             The undersigned Holders constitute each Significant
Holder (as defined in the Shareholders Agreement) and the Majority Shareholders
(as defined in the Shareholders Agreement).

F.             The Holders deem it in their respective best interests
to terminate the Shareholders Agreement and induce the Company to enter into
the Registration Rights Agreement.

AGREEMENT

NOW,
THEREFORE, in consideration of the foregoing recitals and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the undersigned do hereby agree and vote, pursuant to Section
13(a) of the Shareholders Agreement, to terminate such Shareholders Agreement
in its entirety, effective as of the date set forth above.

[Remainder of page intentionally
blank]

 

 

 

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
the date set forth above.

 

	
   

  	
  THE
  ALEXANDER 2003 INVESTMENT TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael Goldberg, Trustee

  
	
   

  	
  Michael
  Goldberg,

  Trustee

  
	
   

  	
   

  
	
   

  	
  INTERLAKEN
  INVESTMENT PARTNERS, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Interlaken
  Management Partners, L.P., its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Lake
  Management, Inc., its general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  William R. Berkley

  
	
   

  	
  William
  R. Berkley

  
	
   

  	
  President

  
	
   

  	
   

  
	
   

  	
  THE
  ROXBURY MANAGEMENT COMPANY, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Stephen E. Anbinder

  
	
   

  	
  Stephen
  E. Anbinder, Manager

  
	
   

  	
   

  
	
   

  	
  THE
  DANIEL M. MEYERS 2003 QUALIFIED ANNUITY TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Daniel Maxwell Meyers

  
	
   

  	
  Daniel
  Maxwell Meyers, Trustee

  
	
   

  	
   

  
	
   

  	
  RALPH
  M. AND JANICE A. JAMES FAMILY IRREVOCABLE TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Catherine J. Paglia

  
	
   

  	
  Catherine
  J. Paglia, Trustee

  

 

1

 

	
   

  	
  /s/
  Leslie L. Alexander

  
	
   

  	
  Leslie
  L. Alexander

  
	
   

  	
   

  
	
   

  	
  /s/
  Stephen E. Anbinder

  
	
   

  	
  Stephen
  E. Anbinder

  
	
   

  	
   

  
	
   

  	
  /s/
  William R. Berkley

  
	
   

  	
  William
  R. Berkley

  
	
   

  	
   

  
	
   

  	
  /s/
  Dort A. Cameron III

  
	
   

  	
  Dort
  A. Cameron III

  
	
   

  	
   

  
	
   

  	
  /s/
  Ralph M. James

  
	
   

  	
  Ralph
  M. James

  
	
   

  	
   

  
	
   

  	
  /s/
  Daniel Maxwell Meyers

  
	
   

  	
  Daniel
  Maxwell Meyers

  
	
   

  	
   

  
	
   

  	
  /s/
  John C. Niles

  
	
   

  	
  John
  C. Niles

  
	
   

  	
   

  
	
  ACKNOWLEDGED

  	
   

  
	
   

  	
   

  
	
  THE FIRST MARBLEHEAD
  CORPORATION

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Donald R. Peck

  	
   

  
	
   

  	
  Donald R. Peck

  	
   

  
	
   

  	
  Executive Vice President and

  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
  November 12, 2004

  	
   

  

 

2Exhibit 10.1

 

SECOND AMENDMENT
TO AMENDED AND RESTATED

STANDARD FORM COMMERCIAL LEASE

 

THIS SECOND
AMENDMENT TO AMENDED AND RESTATED STANDARD FORM COMMERCIAL LEASE (this “Amendment”)
is made as of September 30, 2004, by and between OMV ASSOCIATES LIMITED PARTNERSHIP,
a Massachusetts limited partnership with an address at c/o Capital Properties
Management, Inc., 31 Saint James Avenue, Boston, Massachusetts 02116 (“Lessor”),
and THE FIRST MARBLEHEAD CORPORATION, a Delaware corporation with an address at
Prudential Tower, 800 Boylston Street - 34th Floor, Boston,
Massachusetts 02199-8157, Attn: Chief Operating Officer (“Lessee”).

 

RECITALS:

 

A.                                   Lessor and Lessee entered into that certain Amended and
Restated Standard Form Commercial Lease (the “Original Lease”) dated as of
February 13, 2004, whereby Lessor leased to Lessee certain office space located
at 31 St. James Avenue, Boston, Massachusetts (the “Building”).

 

B.                                     Lessor and Lessee entered into that certain First
Amendment to Lease (the “First Amendment”) dated as of May 21, 2004, whereby
Lessor leased to Lessee certain storage space located in the Building.

 

C.                                     Pursuant
to that certain Tenancy at Will Agreement dated April 19, 2004 (the “TAW
Agreement”), Lessor leased to Lessee certain additional space located in the
Building (the “TAW Space”) on a month-to-month basis.

 

D.                                    Lessor and Lessee desire to amend further the Original
Lease in certain respects, including to increase the size of the premises
leased by Lessor to Lessee pursuant to the Original Lease.

 

NOW THEREFORE, in consideration of the
mutual covenants, conditions and agreements herein contained and intending to
be legally bound, the parties hereto agree that:

 

1.                                       Defined Terms.

 

A.                                   For the purposes of this Amendment, the term “Lease”
shall mean the Original Lease, as amended by the First Amendment and this
Amendment.

 

B.                                     Terms not otherwise defined in this Amendment shall
have the same meanings as are set forth in the Lease.

 

2.                                       Premises;
Rentable Area.  A. The exhibit
attached to the Original Lease as “Exhibit A” is hereby deleted in its
entirety, and the exhibit attached hereto as “Exhibit A” is hereby inserted in
its stead.  The term “Premises Rentable
Area” set forth in Section 1.A of the Original Lease is hereby deleted in its
entirety, and the following is inserted in its stead:

 

Premises
Rentable Area:  Agreed to be: (i) 45,500
rentable square feet located on the sixth floor of the Building as more
particularly identified on Exhibit A (“Space A”); (ii) 45,500 rentable square
feet located on the fourth floor of the Building as more particularly
identified on Exhibit A (“Space B”); (iii) 7,272 rentable square feet located
on the fifth floor of the Building as more particularly identified on Exhibit A
(“Space C”); and (iv) 25,265 rentable square feet located on the fifth floor of
the Building as more particularly identified on Exhibit A (“Space D”).

 

 

The total rentable area in the
Building leased to LESSEE pursuant to this Lease, all as more particularly
identified on Exhibit A, is agreed to be 123,537 rentable square feet (the “Premises”).

 

B.                                     The first sentence of Section 2 of the Original Lease
is hereby deleted in its entirety, and the following is inserted in its stead:

 

A portion
of the Building consisting of approximately 123,537 SQUARE FEET OF RENTABLE
AREA ON THE FOURTH, FIFTH AND SIXTH FLOORS OF THE BUILDING AND COMMONLY KNOWN
AS SUITES 401, 500, 550 & 601, as more particularly identified on the plan
attached hereto as Exhibit A, together with the right to use in common, with
others entitled thereto, the Common Areas.

 

3.                                       Basic Rent.
The term “Basic Rent” set forth in Section 1.A of the Original Lease is hereby
deleted in its entirety, and the following is inserted in its stead:

 

Basic
Rent (as the same may be adjusted and/or abated in accordance with the terms
and conditions of this Lease):

 

Subject to Section 4, commencing as of
the Commencement Date and continuing to April 30, 2009:

 

	
  Space

  	
   

  	
  Basic Rent Rate per

  Rentable Square Foot

  	
   

  	
  Annual Basic Rent

  	
   

  	
  Monthly

  Installments

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Space A

  	
   

  	
  $

  	
  29.50 

  	
  / rsf

  	
  $

  	
  1,342,250.00

  	
   

  	
  $

  	
  111,854.17

  	
   

  
	
  Space B

  	
   

  	
  $

  	
  29.50 

  	
  / rsf

  	
  $

  	
  1,342,250.00

  	
   

  	
  $

  	
  111,854.17

  	
   

  
	
  Space C

  	
   

  	
  $

  	
  20.00 

  	
  / rsf

  	
  $

  	
  145,440.00

  	
   

  	
  $

  	
  12,120.00

  	
   

  
	
  Space D

  	
   

  	
  $

  	
  29.50

  	
  / rsf

  	
  $

  	
  745,317.50

  	
   

  	
  $

  	
  62,109.79

  	
   

  
	
  Total Premises

  	
   

  	
  —

  	
   

  	
  $

  	
  3,575,257.50

  	
   

  	
  $

  	
  297,938.13

  	
   

  

 

Commencing
on May 1, 2009, and continuing to April 30, 2014:

 

	
  Space

  	
   

  	
  Basic
  Rent Rate per

  Rentable Square Foot

  	
   

  	
  Annual
  Basic Rent

  	
   

  	
  Monthly

  Installments

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Space A

  	
   

  	
  $

  	
  34.50

  	
  / rsf 

  	
  $

  	
  1,569,750.00

  	
   

  	
  $

  	
  130,812.50

  	
   

  
	
  Space B

  	
   

  	
  $

  	
  34.50 

  	
  / rsf 

  	
  $

  	
  1,569,750.00

  	
   

  	
  $

  	
  130,812.50

  	
   

  
	
  Space C

  	
   

  	
  $

  	
  34.50 

  	
  / rsf 

  	
  $

  	
  250,884.00

  	
   

  	
  $

  	
  20,907.00

  	
   

  
	
  Space D

  	
   

  	
  $

  	
  34.50 

  	
  / rsf 

  	
  $

  	
  871,642.50

  	
   

  	
  $

  	
  72,636.88

  	
   

  
	
  Total Premises

  	
   

  	
  —

  	
   

  	
  $

  	
  4,262,026.50

  	
   

  	
  $

  	
  355,168.88

  	
   

  

 

The clause, “, and Basic Rent attributable to Space D
shall commence on October 1, 2004” is hereby inserted at the end of Section 4
of the Original Lease.

 

4.                                       Permitted Uses.  The term “Permitted Uses” set forth
in Section 1.A of the Original Lease is hereby deleted in its entirety, and the
following is inserted in its stead:

 

Permitted Uses: General Office, call
center, data center and related uses.

 

 

5.                                       Escalation Factor. The term “Escalation Factor” set forth in Section LA of the Original Lease
is hereby deleted in its entirety, and the following is inserted in its stead:

 

Escalation
Factor: 27.71%, as computed in accordance with the Escalation Factor
Computation. To the extent the size of the Premises changes pursuant to this
Lease, the Escalation Factor shall be adjusted accordingly.

 

6.                                       Electricity Cost. The following sentence is hereby inserted at the end of the definition of
the term “Electricity Cost” set forth in Section 1.A of the Original Lease:

 

Lessee shall pay for all electricity
usage associated with electrical outlets, lighting and ordinary office equipment
in Space D directly to the local provider for the Building. Lessor represents
to Lessee that there is a separate, direct meter that measures electricity only
for Space D.

 

7.                                       Initial Term.
The term “Initial Term” set forth in Section LA of the Original Lease is hereby
deleted in its entirety, and the following is inserted in its stead:

 

Initial Term:

 

Space A,
B and C: Ten (10) years and one (1) month commencing on the Commencement Date
and expiring on April 30, 2014.

 

Space
D:  Nine (9) years and seven (7) months
commencing on October 1, 2004 and expiring on April 30, 2014.

 

8.                                       Assignment and Subleasing.

 

A.                                   Section 13.C of the Original Lease is hereby amended by
deleting the number “30,000” in line 2 and inserting in its stead the number “35,000.”

 

B.                                     Section 13.13 of the Original Lease is hereby amended
by deleting the number “10,000” in line 5 and inserting in its stead the number
“25,000” upon the condition that Lessor shall be entitled to receive its share
(as determined pursuant to Section 13.A) of any rents or other consideration
received by Lessee from The Education Resources Institute, Inc. (commonly known
as TERI) that is in excess of the rents payable by Lessor hereunder for the
space so sublet (anything to the contrary in the last sentence of Section 13.1)
of the Original Sublease notwithstanding).

 

9.                                       Subordination.                 Simultaneously
with the execution of this Amendment, Lessor and Lessee have executed that
certain Subordination, Non-Disturbance and Attornment Agreement of even date
herewith between LaSalle Bank National Association, as Trustee for the
Certificate Holders of LB-UBS Commercial Mortgage Trust 2000-C5, Commercial
Mortgage Pass-Through Certificates, Series 2000-C5 (the “Lender”) and Lessee
(the “SNDA”), the form of which has been previously approved by Lender, Lessee
and Lessor. Lessor agrees to promptly deliver the SNDA to Lender for its
execution. Upon Lender’s execution of the SNDA, and the delivery of the fully
executed SNDA to Lessee, the condition pertaining to delivery of the SNDA set
forth in Section 14 of the Original Lease shall be deemed satisfied.

 

10.                                 Condition and Area. The work letter attached hereto as Exhibit B (Space D) is hereby inserted
at the end of Exhibit B of the Original Lease. The description of Lessor’s Space
D Work attached hereto as Exhibit H (Space D) is hereby inserted at the end of
Exhibit H of the Original Lease. The following paragraphs are hereby inserted
at the end of Section 26 of the Original Lease:

 

 

C.                                     Subject to Lessor’s substantial completion of Lessor’s
work set forth on Exhibit H (Space D) attached hereto, which Lessor shall
complete as soon as reasonably possible, Space D is being delivered strictly in
its “As Is” condition, and Lessee acknowledges that it has inspected Space D
and found Space D to be satisfactory, subject only to Lessor’s substantial
completion of the work described on Exhibit H (Space D).  Lessee shall construct the improvements to
Space D in accordance with Exhibit B (Space D) attached hereto.

 

D.                                    Notwithstanding anything to contrary contained in the
Original Lease, Lessor shall only be obligated to perform the improvements to
Space D that are identified on Exhibit H (Space D).

 

11.                                 Option to Extend. Sections 35.A and 35.B of the Original Lease are hereby deleted in their
entirety, and the following is hereby inserted in their stead:

 

A.                                   Provided that at the time of such exercise (i) there
then exists no Default of Lessee beyond applicable notice and cure periods, and
(ii) this Lease is then in full force and effect, Lessee shall have the right
and option to extend the Initial Term for two (2) successive periods of five
(5) years each (each, an “Extended Term”). The first Extended Term shall
commence on the day immediately succeeding the expiration date of the Initial
Term, and shall end on the day immediately preceding the fifth anniversary of
the first day of such Extended Term, and the second Extended Term shall
commence on the day immediately succeeding the expiration date of the first
Extended Term, and shall end on the day immediately preceding the fifth
anniversary of the first day of such second Extended Term. LESSEE shall
exercise such options to extend by giving written notice to LESSOR of its
desire to do so not later than twelve (12) months prior to the expiration date
of the Initial Term or the first Extended Term, as the case may be. Provided
the conditions of clauses (i) and (ii) of this Section shall have been
satisfied, the giving of such notice by LESSEE shall automatically extend the
Term for the particular Extended Term, and no instrument of renewal need be
executed. In the event that LESSEE fails to give such notice to LESSOR, this
Lease shall automatically expire at the end of the Initial Term or the first
Extended Term, as the case may be, and LESSEE shall have no further option to
extend the Term. It is agreed that time is of the essence with respect to the
giving of such notice. The Extended Terms shall be on all the terms and
conditions of this Lease, except that (I) the option to extend the Term as set
forth in this Section shall be deleted (except that the option to exercise the
second Extended Term shall continue to be effective in accordance with this
Section during the first Extended Term), (II) the Basic Rent for the Extended
Terms shall be at 95% of fair market value as designated by LESSOR by written
notice to LESSEE within sixty (60) days after receipt of notice from LESSEE,
and (III) Base Operating Expenses and Base Taxes shall be calendar year 2014
and fiscal year 2015, respectively, for the first Extended Term, and calendar
year 2019 and fiscal year 2020, respectively, for the second Extended Term. If
LESSEE disagrees with such designation of fair market value (the “Designation”),
LESSEE shall by written notice, advise LESSOR of such disagreement within
fifteen (15) business days after LESSEE’S receipt of the Designation, time
being of the essence; otherwise LESSEE shall conclusively be deemed to have
agreed to such Designation.

 

B.                                     “Intentionally Omitted”.

 

12.                                 Expansion Option. The term “Expansion Space” set forth in Section 1.13 of the Original Lease
is hereby deleted in its entirety. Section 36 of the Original Lease is hereby
deleted in its entirety, and the term “Intentionally Omitted” is hereby
inserted in its stead. Lessee acknowledges and agrees that

 

 

Lessee maintains no further expansion options in
connection with the Original Lease other than as set forth in this Amendment or
in Section 37 of the Original Lease, as amended hereby.

 

13.                                 Right of First Offer and Expansion Option. Section 37.A of the Original Lease is hereby amended
by (i) deleting the words “Expansion Space” from lines 7 and 8, and inserting
in their stead the words “Put Space (as defined in Section 39)” and (ii)
deleting the number “30,000” in line 10 and inserting in its stead the number “35,000.”
The following is hereby inserted at the end of Section 37 of the Original
Lease:

 

D.                                    Notwithstanding
anything to the contrary contained in this Original Lease, Lessee may not
lease, nor deliver any notice of any intent to lease, any portion of the First
Offer Space located on the second floor of the Building during the period
commencing on August 1, 2004 and expiring on January 31, 2005.

 

14.                                 Lessee Space C Termination Right: Put Suites. Section 39 of the Original Lease is hereby deleted in
its entirety, and the following is hereby inserted in its stead:

 

If any of
the six suites located on the fifth floor of the Building as identified on
Exhibit C attached hereto and referred to on Exhibit A as “Space E”
(collectively, the “Put Suites”) become available for lease at any time during
the Term, then provided that at the time any such Put Suite becomes available
for lease, (i) there then exists no Default of Lessee beyond applicable notice
and cure periods, and (ii) the Lease, as amended hereby, is then in full force
and effect, Lessee shall lease such Put Suite upon the terms and conditions
applicable to Spaces A and B as are contained in this Lease (including, without
limitation, the same Basic Rent rate per rentable square foot as is applicable
to Spaces A and B), except that (a) Lessor shall not be obligated to perform
any work or improvements to the Put Suite or to provide any allowance or other
financial contribution other than, in the event of a five (5) year term, $37.00
per rentable square foot in the Put Suite, and in the event of a term in excess
of seven (7) years, $40.00 per rentable square foot in the Put Suite, (b) the
Base Operating Expenses with respect to a Put Suite shall be the Operating
Expenses for the calendar year in which Lessee commences to occupy such Put
Suite for the conduct of its business, (c) the Base Taxes with respect to a Put
Suite shall be the actual real estate taxes assessed against the Property for
the tax year in which Lessee commences to occupy such Put Suite for the conduct
of its business, and (d) the Escalation Factor for a Put Suite shall be
determined by dividing the rentable area of such Put Suite by the Building’s
rentable area (445,765 square feet). Lessee shall, within twenty (20) Business
Days after delivery of notice by Lessor of the availability of such Put Suite,
execute an amendment to this Lease on a form provided by Lessor adding the Put
Suite to the Premises and otherwise reflecting the terms of this Section. Basic
Rent attributable to any Put Suite shall be payable commencing as of the
earlier of the ninetieth day after Lessor delivers possession of such Put Suite
to Lessee or the date that Lessee first occupies such Put Suite for the conduct
of its business.

 

15.                                 Tenancy at Will Space. Lessee shall remain in occupancy of the TAW Space and
continue to pay rent as set forth in the TAW Agreement through and including
December 15, 2004, after which date, Lessee shall vacate and the surrender the
TAW Space in accordance with the TAW Agreement.

 

16.                                 Additions & Alterations. All of the provisions of Section 12 of the Original
Lease shall apply to the construction, installation or performance of any
alterations or additions to the Premises after the completion of the initial
renovations to Space D other than those that are set forth in the fourth
sentence thereof.

 

 

17.                                 Brokerage Commissions. Lessee warrants and represents that Lessee has dealt
with no broker other than Codman Company (“Codman”) in connection with the
consummation of this Amendment, and, in the event of any brokerage claims
against Lessor predicated upon prior dealings with Lessee, then Lessee agrees
to defend the same and indemnify Lessor against any such claim.  Lessor agrees to pay Codman a commission
pursuant to a separate agreement between Lessor and Codman, and to defend and
indemnify Lessee against any claim by Codman relating to said commission.

 

18.                                 Ratification, Binding Effect. Except as hereby amended, the Lease and all covenants,
agreements, terms and conditions thereof shall continue in full force and
effect, subject to the terms and provisions thereof and hereof, and is ratified
and confirmed by the parties hereto.  This
Amendment (i) shall be governed, construed, and enforced under the laws of the
Commonwealth of Massachusetts, (ii) contains the entire understanding of the
parties with respect to the provisions of the Lease amended hereby, (iii) may
not be modified except by a writing signed by both parties and (iv) and shall
be binding upon and inure to the benefit of Lessor, Lessee and their respective
successors and permitted assigns.

 

19.                                 Conflict. In
the event of any conflict between the terms of the Lease and the terms of this
Amendment, the terms of this Amendment shall control.

 

20.                                 Recitals.  The recitals to this Amendment and the facts
set forth therein and each writing referred to herein as being annexed hereto
as an exhibit or otherwise designated herein as an exhibit hereto are hereby
incorporated herein by reference.

 

21.                                 Counterparts.  This Amendment may be executed in any number
of counterparts, each of which shall be deemed to be an original agreement and
all of which when taken together shall be deemed to be one and the same
agreement.

 

22.                                 Miscellaneous.
Lessor hereby advises Lessee that Lessor recalibrates the HVAC system servicing
the Building and tests the airflow thereof after Lessor, or any person or
entity with Lessor’s consent, alters or repairs said system. Lessor agrees to
deliver to Lessee the results of such airflow tests within a reasonable period
of time after the completion thereof (or within fifteen (15) business days
after receipt of a request from Tenant for the most recent copy of such
results, unless Lessee has previously received a copy of same).

 

 

IN WITNESS WHEREOF, the parties have
hereunder set their hands and seal as of the date first written above.

 

	
  LESSEE:

  	
  LESSOR:

  
	
   

  	
   

  
	
  FIRST MARBLEHEAD CORPORATION

  	
  OMV ASSOCIATES

  	
   

  
	
   

  	
  LIMITED PARTNERSHIP

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Andrew J. Hawley

  	
   

  
	
  Name:

  	
  Andrew J. Hawley

  	
   

  	
  By:

  	
  Park Square Corporation

  
	
  Title:

  	
  President, FMER

  	
   

  	
  Its General Partner

  
	
   

  
	
   

  	
  By:

  	
  /s/ Richard D. Cohen

  	
   

  
	
   

  	
  Richard D. Cohen

  
	
   

  	
  Its President

  
										

 

 

EXHIBIT A

Premises

 

 

 

	
  

  	
   

  	
   

  
	
  EXHIBIT A – SPACE ‘A’

  
	
  SUITE 601 – 45,500
  RENTABLE SQ FT

  
	
  6TH FLOOR, 31 ST. JAMES
  AVE.

  
	
  NOT TO SCALE

  	
  8/6/2004

  
	
   

  

 

 

 

	
  

  	
   

  	
   

  
	
  EXHIBIT A – SPACE ‘B’

  
	
  SUITE 401 – 45,500
  RENTABLE SQ FT

  
	
  4TH FLOOR, 31 ST. JAMES
  AVE.

  
	
  NOT TO SCALE

  	
  8/6/2004

  
	
   

  

 

 

 

	
  

  	
   

  	
   

  
	
  EXHIBIT A – SPACE ‘C’

  
	
  SUITE 550 – 7,272
  RENTABLE SQ FT

  
	
  5TH FLOOR, 31 ST. JAMES
  AVE.

  
	
  NOT TO SCALE

  	
  8/6/2004

  
	
   

  

 

 

 

	
  

  	
   

  	
   

  
	
  EXHIBIT A – SPACE ‘D’

  
	
  SUITE 500 – 25,265
  RENTABLE SQ FT

  
	
  5TH FLOOR, 31 ST. JAMES
  AVE.

  
	
  NOT TO SCALE

  	
  8/11/2004

  
	
   

  

 

 

 

	
  

  	
   

  	
   

  
	
  EXHIBIT A – SPACE ‘E’

  
	
  SUITE 510, 520, 530,
  560, 565, 570

  
	
  5TH FLOOR, 31 ST. JAMES
  AVE.

  
	
  NOT TO SCALE

  	
  8/10/2004

  
	
   

  

 

 

EXHIBIT B
(Space D)

 

Work
Letter

 

In consideration of the mutual covenants contained
herein and in the Lease, LESSOR and LESSEE agree as follows:

 

1.                                       Plans and Specifications.

 

(i)                                     LESSEE
shall submit to LESSOR the plans and specifications (the “D Plans”) for the
leasehold improvement work to be completed in Space D by LESSEE (the “D Work”).
The D Plans shall include the following types of plans and specifications: (1)
architectural; (2) structural; (3) mechanical; (4) plumbing; and (5)
electrical. LESSEE shall deliver two (2) sets of any progress set or portion of
the D Plans submitted to LESSOR for its approval.

 

(ii)                                  LESSOR shall have five (5) Business Days following
receipt of any progress set or other portion of the D Plans to approve or
disapprove such progress set or portion of the D Plans; LESSOR agrees not to
unreasonably withhold or condition its approval thereof. Failure by LESSOR to
respond within said five-(5) Business Day period shall be deemed approval of
such progress set or portion of the D Plans. If such progress set or portion of
the D Plans is disapproved, then LESSOR shall inform LESSEE of the reasons for
such disapproval, after which LESSEE shall have five (5) Business Days to
submit revisions to LESSOR. LESSEE shall not unreasonably refuse to satisfy any
reasonable objection of LESSOR to the D Plans or any portion thereof. With
respect to any resubmitted progress set or portion of the D Plans, LESSOR shall
have five (5) Business Days following receipt of said resubmitted plans to
approve or disapprove the same, and LESSOR agrees not to unreasonably withhold
or condition its approval thereof. Failure by LESSOR to respond with said
five-(5) Business Day period shall be deemed approval of such resubmitted
plans. If such resubmitted plans are disapproved, then LESSOR shall inform
LESSEE of the reasons for such disapproval, after which LESSEE shall have three
(3) Business Days to submit revisions to LESSOR. In the event the revisions to
the resubmitted plans are disapproved, the provisions of the immediately three
(3) preceding sentences shall apply and shall continue until said plans and
specifications are approved by LESSOR. The D Plans, when approved by LESSOR,
shall be initialed by both parties and attached to this Lease as Exhibit
B-D-1.

 

(iii)                               Within fifteen (15) Business Days following the approval of the D Plans by
LESSOR and LESSEE, LESSEE shall submit to LESSOR a construction schedule and
budget for the D Work.

 

(iv)                              Once the D Plans are initialed by both parties, there shall be no material
changes to the D Plans without notice to LESSOR. Any change in the D Plans that
affects the Building Systems or the exterior or structural elements of the
Building shall be deemed material and shall not be made without obtaining the
prior written consent of LESSOR, which consent shall not be unreasonably
withheld or conditioned. Any requests for LESSOR’S consent shall be accompanied
by such information as LESSOR may reasonably require to evaluate such requests.
No material change to the D Plans shall substitute material or workmanship of
lesser quality than is stipulated in the D Plans, unless otherwise approved by
LESSOR. LESSOR shall have five (5) Business Days following receipt of requested
changes to the D Plans to approve or disapprove such changes. Failure by LESSOR
to respond within said five-(5) Business Day period shall be deemed approval of
the changes. If the changes are disapproved, then LESSOR shall inform LESSEE of
the reasons for such disapproval, after which LESSEE shall have five (5)
Business Days to either (i) submit revisions to LESSOR or (ii) withdraw its
request for LESSOR’S consent to such change. If LESSEE elects to submit
revisions to LESSOR, LESSEE shall not unreasonably refuse to satisfy any
reasonable objection of LESSOR to such changes to the D Plans. LESSOR shall
have five (5) Business Days following receipt of said revisions to approve or
disapprove

 

 

the same, and LESSOR agrees not to unreasonably
withhold or condition its approval thereof. Failure by LESSOR to respond with
said five (5) Business Day period shall be deemed approval of such revisions.
If such revisions are disapproved, then LESSOR shall inform LESSEE of the
reasons for such disapproval, after which LESSEE shall have three (3) Business
Days to submit revised revisions to LESSOR. In the event the revised revisions
are disapproved, the provisions of the immediately three (3) preceding
sentences shall apply and shall continue until said revisions are approved by
LESSOR.

 

(v)                                 For purposes of the D Work, LESSEE’S architect shall be
Fuller Associates Inc. (the “Architect”), and LESSEE’S general contractor shall
be Shawmut Design and Construction (the “General Contractor”). LESSEE shall not
change the Architect or the General Contractor for the D Work without LESSOR’S
consent, which consent shall not be unreasonably withheld, delayed or
conditioned. After the D Plans are initialed by both parties, LESSOR may
request a copy of the contract with the Architect and a copy of the contract
with the General Contractor, and LESSEE agrees to submit said copies to LESSOR.
In addition, upon LESSOR’S request, LESSEE shall provide conditional
assignments (contingent upon LESSEE’S default under this Lease) to LESSOR of
LESSEE’S interest in all contracts or agreements with the Architect and the
General Contractor containing such terms and conditions as are reasonably
satisfactory to LESSOR and LESSEE.

 

(vi)                              LESSOR’s review of the D Plans shall be for its sole purpose and shall not
imply LESSOR’s warranty of the same, nor obligate LESSOR to review the same for
quality, design, compliance with building codes or any other applicable law, or
any other matters, nor imply that in LESSOR’s opinion, the D Work may be
constructed within the D Work budget. Accordingly, notwithstanding that the D
Plans are reviewed and approved by LESSOR or its space planner, architect,
engineers and consultants, and notwithstanding any advice or assistance which
may be rendered to LESSEE, the Architect or the General Contractor by LESSOR or
LESSOR’s space planner, architect, engineers and consultants, LESSOR shall be
neither the guarantor of, nor have any liability whatsoever in connection
therewith, and shall not be responsible for any omissions or errors contained
in the D Plans.

 

2.                                     Delivery of Premises; Commencement of Construction and
Substantial Completion.

 

(i)                                     LESSOR
shall complete LESSOR’S work described on Exhibit H (Space D) (except for the
portion thereof which is designated on Exhibit H (Space D) to be completed
during the construction of the D Work or which, in accordance with generally
accepted construction practices, can be completed during the construction of
the D Work without causing any delay in the completion of the D Work), and
LESSOR shall deliver to LESSEE Space D ready for LESSEE’S construction of the D
Work on or prior to October 15, 2004 (the “D Delivery Date”). LESSEE agrees to
do a walk through of Space D on or prior to October 13, 2004, it being
understood that LESSOR believes that it completed all of the work it is
required to perform (other than the work described on Exhibit H (Space D) to be
completed during the construction of the D Work) prior to October 1, 2004. If,
as a result of matters within the reasonable control of LESSOR and not as a result
of Force Majeure or any LESSEE action or inaction, LESSOR is unable to deliver
possession to LESSEE of any portion of Space D on or prior to the D Delivery
Date, then the lease of Space D shall not be void or voidable, and LESSOR shall
have no liability for loss or damage resulting therefrom; provided, however, if
such delays exceed 180 days, then either LESSOR or LESSEE upon notice to the
other may terminate this Lease as to Space D only without liability to the
other party.

 

(ii)                                  LESSEE may have access to Space D after the D Delivery
Date and prior to taking occupancy for the conduct of its business for the
purpose of inspecting Space D and for preparing for and then constructing the D
Work. All of the terms, covenants, conditions and provisions of the Lease shall
apply to such early access, with the exception of the obligation to pay Basic
Rent as to Space D.

 

 

Additionally, such early access to Space D by LESSEE
and its agents, contractors and employees is further conditioned upon such
other reasonable requirements as LESSOR may prescribe, including the following:

 

(a)                                  Prior to commencing the D Work, LESSEE shall give to
LESSOR (1) copies of all licenses and permits required in connection with the
performance of the D Work, (2) the certificates of insurance required under the
terms of the Lease, (3) a construction schedule for the performance of the D
Work, which schedule may be revised from time to time during the course of said
construction, and (4) a list of all subcontractors and suppliers.

 

(b)                                 Such early access shall be subject to reasonable
scheduling requirements established by LESSOR and such other reasonable rules
and regulations as may be prescribed by LESSOR, including the rules and
regulations attached to the Original Lease as Exhibit E.

 

(c)                                  In performing the D Work, LESSEE’S contractors,
subcontractors and suppliers shall work in harmony, and not interfere, with
LESSOR, the contractors hired by LESSOR or the other tenants in the Building.
If at any time LESSEE or LESSEE’S contractors, subcontractors or suppliers
shall cause or threaten to cause such disharmony, LESSOR may withdraw its
permission for early access upon twenty-four (24) hours’ prior written notice
to LESSEE.

 

(d)                                 In performing the D Work, if LESSEE discovers evidence
of asbestos, leadbased paint or other hazardous materials that require
abatement or remediation management, then LESSEE shall immediately notify
LESSOR of such discovery. LESSOR shall thereafter shall adopt an appropriate
abatement or remediation program that complies with all applicable federal,
state and local laws and regulations, and, except as provided herein, LESSOR
shall be promptly reimbursed for all costs and expenses incurred by LESSOR and
its agents and contractors in connection with such abatement or remediation
program; provided, however, LESSOR shall not be reimbursed for such costs and
expenses to the extent the same are incurred in connection with the
construction of the D Work.

 

(e)                                  LESSOR shall not be liable for any injury, loss or
damage which may occur to any of the D Work or other installations made in
Space D or to property placed therein prior to LESSEE taking occupancy of Space
to conduct its business, the same being at LESSEE’S sole risk and liability.
LESSEE shall be liable to LESSOR for any damage to Space D or to any portion of
the LESSOR’S work caused by LESSEE or any of LESSEE’S employees, agents,
contractors, workers or suppliers. In the event the performance of the work by
LESSEE, its agents, employees or contractors causes extra costs to LESSOR or
requires the use of elevators during hours other than 8:00 a.m. to 4:30 p.m. on
Monday through Friday (except holidays), LESSEE shall reimburse LESSOR for the
entire extra cost and the cost incurred by LESSOR for the engineers or
operators under applicable union regulations or contracts; provided, however,
if other contractors are using the elevators after hours as well, such costs
shall be allocated among the parties using the elevators.

 

(iii)                               LESSEE shall
construct the D Work in accordance with the D Plans and all applicable zoning,
building, health, safety, environmental and other governmental regulations and
shall pursue

 

 

construction of the D Work in a good and workerlike
manner diligently to completion, and shall not substantially cease construction
for any period in excess of ten (10) consecutive Business Days except for (i)
any cause attributable to Force Majeure or (ii) any cause for which LESSEE has
obtained LESSOR’S consent, which consent shall not be unreasonably withheld or
delayed.

 

(iv)                              If LESSOR shall give LESSEE notice of a material defect in the D Work or of
a material departure from the D Plans not approved by LESSOR, then LESSEE
shall, within twenty (20) days after receipt of such notice, take all necessary
steps to cure such material defect or material departure from the D Plans, or
if such steps cannot be completed within such time, then LESSEE shall commence
such steps within such twenty (20)-day period and continue diligently to
complete them until completion.

 

(v)                                 LESSEE shall use its best efforts to substantially
complete the D Work as soon as reasonably possible. The D Work shall be deemed
substantially completed upon:

 

(1)                                  Issuance of a certificate of occupancy by the
appropriate local authority for the D Work which permits lawful occupancy of
Space D by LESSEE (the “Space D CO”);

 

(2)                                  Receipt by LESSOR of Application and Certificate for
Payment, AIA Document G702, executed by the Architect and the General
Contractor, and notarized, stating that (A) the D Work has been substantially
completed in accordance with the D Plans and stating those respects in which
the D Work remains incomplete, (B) the D Work has been satisfactorily
integrated into, and is otherwise compatible with, the Building and the
Building Systems so that LESSOR may fulfill its obligations to LESSEE pursuant
to the terms and provisions of this Lease, (C) all utilities and like services
have been connected and are operational and (D) Space D is ready for occupancy;

 

(3)                                  Delivery to LESSOR of lien waivers from the General
Contractor reasonably satisfactory to LESSOR stating that no claim against the
Building remains unsatisfied; and of a certification of the General Contractor
that it has obtained final lien waivers from each subcontractor and supplier supplying
materials or services to Space D;

 

(4)                                  Completion of an inspection of the D Work by LESSOR
confirming (A) substantial completion of the D Work in accordance with the D
Plans, and (B) satisfactory integration and compatibility of the D Work into
and with the Building and the Building Systems so that LESSOR may fulfill its
obligations to LESSEE pursuant to the terms and provisions of this Lease; and

 

(5)                                  Within thirty (30) days after the D Work is deemed
substantially complete, delivery to LESSOR of two sets of final “as built”
versions of the D Plans.

 

(vi)                              LESSEE shall cause all warranties and guarantees, if
any, with respect to the D Work to name or be for the benefit of both LESSEE
and LESSOR, as their respective interests may appear.

 

3.                                     Improvement Advances.

 

Except as
otherwise set forth in this paragraph, LESSEE hereby covenants with LESSOR that
LESSEE shall promptly and fully pay for all costs and expenses incurred in
connection with the D Work. LESSOR shall contribute to a portion of the cost of
the D Work in an amount not to exceed $1,010,600.00 (the “Space D Allowance”).
If the cost of the D Work exceeds the Space D Allowance, then LESSEE shall be
responsible for and pay such excess. Subject to the conditions contained
herein, portions of the Space D Allowance may be advanced to LESSEE as the D
Work is completed in accordance with the schedule and budget to be attached
hereto as Exhibit B-D-2 (each, a “D Improvement Advance”). LESSOR shall
not be required to make more than one D Improvement Advance in any one

 

 

calendar month, and the D Improvement Advances shall be
for the amounts set forth in the D Request for Advance (as hereinafter
defined); provided, however, if LESSOR determines that some or all of the work
described in the D Request for Advance has not been completed in accordance
with the D Plans and this work letter, then LESSOR may withhold from such
payment an amount equal to the reasonable value of such unacceptable work. The
proceeds of the D Improvement Advance shall be applied solely and exclusively
towards the construction of the D Work in accordance with the D Plans. The D
Improvement Advances are intended to be disbursed in accordance with the budget
and construction schedule to be approved hereafter by the parties and to be attached
hereto and made a part hereof as Exhibit B-D-2. To request an D
Improvement Advance, LESSEE shall submit to LESSOR, on a form reasonably
required by LESSOR, the amount requested (the “D Request for Advance”),
together with a certificate from the Architect certifying the percentage of the
D Work completed and certificates of payment covering all D Work which have
been made as of the date of the payment of the D Improvement Advance advanced
for the previous month and such other information as may be reasonably required
by LESSOR. All such certificates shall be in form and substance reasonably
satisfactory to LESSOR, and LESSOR and LESSOR’S representatives shall be
permitted from time to time to inspect Space D and LESSEE’S books and records
with respect to the D Work during normal business hours and on reasonable
notice. All D Requests for Advance shall be subject to LESSOR’S confirmation of
the satisfactory completion of the D Work in accordance with the D Plans-to
date. Each D Request for Advance shall be submitted by written notice to LESSOR
not less than 30 Business Days prior to the date. LESSEE desires receipt of the
requested D Improvement Advance. LESSOR shall have no obligation to make any D
Improvement Advance, if any material event of default by LESSEE under this
Lease has occurred and has not yet been cured.

 

 

EXHIBIT C

 

Put
Suites

 

•                      Suite 570: Gov’t of Puerto Rico-1,996 SF-LED 6/30/2005

•                      Suite 565: Media Link-1,665 SF-LED 6/30/2005

•                      Suite 560: Marcus-1,201 SF-LED 2/28/2006

•                      Suite 530: Nextel-3,364 SF-LED 11/30/2006

•                      Suite 520: Yankee Group-2,989 SF-LED 6/30/2007

•                      Suite 510: Inlingua-1,748 SF-LED 5/31/2009

 

 

EXHIBIT H
(SPACE D)

LESSOR’S
SPACE D WORK

 

DEMO & REMOVE & ABATE

 

Demo and remove all lights and associated wiring.

Demo and remove all telephone and data cabling.

Demo and remove all Exit signs & associated cabling
and emergency batteries.

Demo and remove approximately 1,000 square feet of
raised VCT in two (2) locations.

 

Remove ceiling hangers and keep existing anchors.

Remove ceiling suspenders and keep existing anchors.

 

Abate two (2) wet columns within thirty (30) days
following LESSEE’S identification of location provided all required permits are
received within ten (10) Business Days following LESSEE’ S identification of
location and provided further that LESSEE agrees to the scheduling of the work.

 

SAVE

 

Existing split air system with condenser on the roof- “as-is”
condition.

Fire alarm system with cable, smoke detectors and pull
stations.

Existing perimeter radiator covers.

Existing soffit at perimeter.

 

REPAIR, REPLACE, REROUTE, INSTALL

 

Fire-stop all penetrations at building core per code,
including large penetrations where pipes enter the core.

Repair or replace all mildew or torn pipe insulation.

Repair existing fan coils that are inoperative or
malfunctioning.

(LESSEE shall be responsible for cleaning, filter
changes, balancing and system check at end of construction).

Repair or replace approximately 10 perimeter radiator
enclosures, with building standard particleboard, located between column bays.

(The painting or laminate of the repaired or replaced
enclosures are LESSEE’S responsibility.)

Repair or replace approximately 6 interior columns that
have been opened by Landlord*

 

REMAINING BUILT-OUT AREA

 

Remove all carpet and VCT in remaining built-out lobby
and conference area.

Remove all ceiling tiles, lights and ceiling
electrical.

Remove all drywall, not identified below, and millwork.

Remove all corkboard down to the studs.

Save all electrical plugs in the reception and
conference area. 

Save conference rooms, one closet, reception area, glass doors.

 

 

HVAC SYSTEM

 

The components of the HVAC system servicing Space D
shall be fully operational and otherwise in good condition and repair, and,
upon completion of the D Work, Landlord shall recalibrate the HVAC system for
the Building to ensure adequate air flow to Space D and to the other portions
of the Premises.

 

* LESSOR expects to work directly with LESSEE’S selected contractor,
through a change order, since this work should be done towards the end of the
project. We can mark these repair items on a drawing as we get closer to
commencing work.

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