Document:

EX-10.53

 

Exhibit 10.53

     THIS MANAGEMENT AGREEMENT (this “Management Agreement”) is dated as of October 1, 2003
and entered into by and between Lexington/Lion Venture LP, a Delaware limited partnership (the
“Partnership”), and Lexington Realty Advisors, Inc., a Delaware corporation (the “Asset Manager”).

     WHEREAS, the Partnership owns or will own net-leased real estate properties in the United
States of America (collectively, the “Qualified Properties”); and

     WHEREAS, the Partnership desires to have the Asset Manager undertake the duties and
responsibilities hereinafter set forth.

     NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants
herein contained, the Partnership and the Asset Manager agree as follows:

     1. Definitions. Unless otherwise defined herein, capitalized terms used in this
Management Agreement shall have the meanings ascribed to such terms in that certain Limited
Partnership Agreement of Lexington/Lion Venture LP (the “Partnership”) dated as of even date
herewith among Lexington Corporate Properties Trust, a Maryland real estate investment trust
(“LXP”), as a limited partner of the Partnership, LXP GP, LLC, a Delaware limited liability company
(“LXP GP”, and together with LXP, collectively, the “LXP Partners”), as a general partner of the
Partnership, CLPF-LXP/LV, L.P. Delaware limited partnership (the “Fund”), as a limited partner of
the Partnership, and CLPF-LXP/Lion Venture GP, LLC, a Delaware limited liability company (the “Fund
GP”, and together with the Fund, collectively, the “Fund Partners”), as a general partner of the
Partnership (as such limited partnership agreement may be amended, restated, supplemented or
otherwise modified from time to time in accordance with the terms thereof, the “Partnership
Agreement”).

     2. Obligations of the Asset Manager. The Asset Manager shall perform on behalf of the
Partnership those duties and responsibilities of the Managing General Partner in respect of the
evaluation of Proposed Qualified Properties and the acquisition of Approved Qualified Properties as
contemplated by Section 3.6 of the Partnership Agreement, and in respect of the management of the
Qualified Properties that may be delegated to the Asset Manager pursuant to Section 3.1(b) of the
Partnership Agreement. With respect to the management of the Qualified Properties, the Asset
Manager shall perform the duties and responsibilities described in Appendix 1 attached
hereto and made a part hereof. Additionally, the Asset Manager shall prepare or cause to be
prepared reports and statements as is, and in the manner, required by the Partnership Agreement.
The Asset Manager shall maintain appropriate books of account and records relating to services
performed pursuant hereto, which books of account and records shall be available for inspection by
representatives of the Partnership upon reasonable notice during normal business hours, and from
time to time or at any time requested by the Partnership, make reports to the Partnership of the
Asset Manager’s performance of the foregoing services. In performing the foregoing services, the
Asset Manager shall not,

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and shall have no power or authority to, (i) bind the Partnership, or to enter into any
contract or other agreement in the name of or on behalf of the Partnership, unless specifically
authorized in writing to do so by the Partnership, (ii) amend, cancel or alter any of the
organizational documents of the Partnership, or (iii) do any act not authorized pursuant to this
Management Agreement, unless specifically authorized to do so in writing by the Partnership or
specifically authorized to do so by the Partnership Agreement. Any and all approvals required from
the Partnership pursuant to this Management Agreement may be given or withheld by the Partnership
in its absolute and sole discretion.

     3. No Partnership or Joint Venture. The Partnership and the Asset Manager are not
partners or joint venturers with each other and the terms of this Management Agreement shall not be
construed so as to make them such partners or joint venturers or impose any liability as such on
either of them.

     4. Employees of Asset Manager. All persons engaged in the performance of the services
to be performed by the Asset Manager hereunder shall be employees of LXP or LXP GP;
provided, however, that, employees and officers of LXP and LXP GP may also be employees and
officers of the Partnership. All of the Asset Manager’s employees shall be covered by workers’
compensation insurance in the manner required by law.

     5. Limitation on the Asset Manager’s Liability.

          (a) Except as provided in Section 5(b) below, the Asset Manager and its directors,
officers and employees shall not be liable, responsible or accountable in damages or otherwise to
the Partnership or either Partner for (a) any loss or liability arising out of any act or omission
by the Asset Manager so long as any such act or omission did not constitute (i) a breach of this
Management Agreement or of the Partnership Agreement which breach had or has a material adverse
effect on the Partnership and, if capable of cure, is not cured within fifteen (15) days after
notice thereof is delivered to the Asset Manager by the Partnership, (ii) gross negligence or
willful misconduct or (iii) fraud or bad faith on the part of the Asset Manager or (b) any acts or
omissions by third parties selected by the Asset Manager in good faith and with reasonable care to
perform services for the Partnership.

          (b) Notwithstanding the limitation contained in Section 5(a) above, the Asset Manager
shall be liable, responsible and accountable in damages or otherwise to the Partnership and the
Fund Partners for any act or omission on behalf of the Partnership and within the scope of
authority conferred on the Asset Manager (i) which act or omission was negligent (including any
negligent misrepresentation) and violated any law, statute, regulation or rule relating to Shares
or any other security of LXP or (ii) to the extent the Partnership or any Fund Partner is charged
with liability for, or suffers or incurs loss, liability, cost or expense (including reasonable
attorneys’ fees)

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as a result of, such act or omission and such act or omission was negligent and related to
Shares or such other security of LXP.

     6. Partnership’s Professional Services. The Partnership may independently retain
legal counsel and accountants to provide such legal and accounting advice and services as the
Partnership shall deem necessary or appropriate.

     7. Expenses of the Asset Manager and the Partnership.

          (a) The Asset Manager shall pay, without reimbursement by the Partnership (i) the salaries of
all of its officers and regular employees and all employment expenses related thereto, (ii) general
overhead expenses, (iii) record-keeping expenses, (iv) the costs of the office space and facilities
which it requires, (v) the costs of such office space and facilities as the Partnership reasonably
requires, (vi) all out of pocket costs and expenses incurred in connection with the management of
the Qualified Properties and the Partnership (other than reasonable and customary costs and
expenses of Third Parties retained in connection with the management of the Qualified Properties
and the Partnership) and (vii) costs and expenses relating to Acquisition Activities as set forth
in and limited by Section 3.6(f) of the Agreement.

          (b) The Asset Manager shall either pay directly from a Partnership account or pay from its own
account and be reimbursed by the Partnership for the following Partnership costs and expenses that
are incurred by the Partnership or by the Asset Manager in the performance of its duties under this
Management Agreement or the Partnership Agreement:

               (i) Permitted Expenses;

               (ii) all reasonable and customary costs and expenses relating to Third Parties
retained in connection with a Proposed Qualified Property or an Approved Qualified Property
as provided in Section 3.6(f) of the Partnership Agreement provided, that if for
any reason the Asset Manager, or any LXP Affiliated Party (instead of the Partnership or an
SP Subsidiary) acquires title to any Proposed Qualified Property or Approved Qualified
Property, the Asset Manager shall pay all of the costs and expenses incurred or to be
incurred in connection with such Proposed Qualified Property or Approved Qualified
Property.

The Asset Manager shall not pay or be reimbursed by the Partnership for any other cost or expense.

          (c) Except as expressly otherwise provided in this Management Agreement or the Partnership
Agreement, the Partnership shall directly pay all of its own expenses, and without limiting the
generality of the foregoing, it is specifically agreed that the following expenses shall be borne
directly by the Partnership and not be paid by the Asset Manager:

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               (i) interest, principal or any other cost of money borrowed by the Partnership;

               (ii) fees and expenses paid to independent contractors, appraisers, consultants and
other agents retained by or on behalf of the Partnership and expenses directly connected
with the financing, refinancing and disposition of real estate interests or other property
(including insurance premiums, legal services, brokerage and sales commissions,
maintenance, repair and improvement costs and expenses related to the Qualified
Properties); and

               (iii) insurance as required by the Partnership.

     8. Indemnification by the Partnership. The Partnership shall indemnify, defend and
hold harmless the Asset Manager by reason of any act or omission or alleged act or omission arising
out of the Asset Manager’s activities as the Asset Manager on behalf of the Partnership, against
personal liability, claims, losses, damages and expenses for which the Asset Manager has not
otherwise been reimbursed by insurance proceeds or otherwise (including attorneys’ fees, judgments,
fines and amounts paid in settlement) actually and reasonably incurred by the Asset Manager in
connection with such action, suit or proceeding and any appeal therefrom, unless the Asset Manager
(A) acted fraudulently, in bad faith or with gross negligence or willful misconduct or (B) by such
act or failure to act breached any covenant contained in this Management Agreement, which breach
had or has a material adverse effect on the Partnership or either Partner and, if capable of cure,
is not cured within fifteen (15) days after notice thereof from the Partnership. Any indemnity by
the Partnership under this Management Agreement shall be provided out of, and to the extent of,
Partnership revenues and assets only, and no Partner shall have any personal liability on account
thereof. The indemnification provided under this Section 8 shall (x) be in addition to,
and shall not limit or diminish, the coverage of the Asset Manager under any insurance maintained
by the Partnership and (y) apply to any legal action, suit or proceeding commenced by a Partner or
in the right of a Partner or the Partnership. The indemnification provided under this Section
8 shall be a contract right and shall include the right to be reimbursed for reasonable
expenses incurred by the Asset Manager within thirty (30) days after such expenses are incurred.

     9. Terms and Termination. This Management Agreement shall remain in force until
terminated in accordance herewith. At the sole option of the Partnership, exercisable in the
Partnership’s sole and arbitrary discretion with or without Cause, this Management Agreement may be
terminated at any time and for any reason immediately upon notice of termination from the
Partnership to the Asset Manager. This Management Agreement shall automatically expire upon the
completion of dissolution or winding up of the Partnership pursuant to Section 9.2 of the
Partnership Agreement or the removal or resignation of LXP GP as Managing General Partner. This
Management Agreement shall also terminate upon any of the following:

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          (a) The Asset Manager shall be adjudged bankrupt or insolvent by a court of competent
jurisdiction or an order shall be made by a court of competent jurisdiction for the appointment of
a receiver, liquidator or trustee of the Asset Manager or of all or substantially all of its
property by reason of the foregoing, or approving any petition filed against the Asset Manager for
reorganization, and such adjudication or order shall remain in force and unstayed for a period of
30 days.

          (b) The Asset Manager shall institute proceedings for voluntary bankruptcy or shall file a
petition seeking reorganization under the Federal Bankruptcy Code, for relief under any law for
relief of debtors, or shall consent to the appointment of a receiver for itself or for all or
substantially all of its property, or shall make a general assignment for the benefit of its
creditors, or shall admit in writing its inability to pay its debts generally as they become due.

     10. Action Upon Termination. After the expiration or termination of this Management
Agreement, the Asset Manager shall:

          (a) Promptly pay to the Partnership or any person legally entitled thereto all monies
collected and held for the account of the Partnership pursuant to this Management Agreement, after
deducting any compensation and reimbursement for its expenses which it is then entitled to receive
pursuant to the terms of this Management Agreement.

          (b) Within 90 days deliver to the Partnership a full account, including a statement showing
all amounts collected by the Asset Manager and a statement of all monies disbursed by it, covering
the period following the date of the last accounting furnished to the Partnership.

          (c) Within ten (10) days deliver to the Partnership all property and documents of the
Partnership then in the custody of the Asset Manager.

Upon termination of this Management Agreement, the Asset Manager shall be entitled to receive
payment for any expenses and fees (including without limitation the Management Fee which shall be
prorated on a daily basis) as to which at the time of termination it has not yet received payment
or reimbursement, as applicable, pursuant to Section 7 and Section 11 hereof, less
any damages to the Partnership caused by the Asset Manager.

     11. Management Fee. The Partnership shall pay to the Asset Manager an annual
Management Fee equal to the Fund Partners’ aggregate Percentage Interest multiplied by two and
one-half percent (2.5%) of Net Rents, payable monthly. Such fee shall be calculated monthly, based
on Net Rents received by the Partnership for such month, and adjusted as provided in this
Section 11. Within thirty (30) days of the Partnership’s receipt of the annual reports
described in Section 4.3 of the Partnership Agreement for a fiscal year, the Asset Manager shall
provide to the Partnership a written statement of reconciliation setting forth (a) the Net Rents
for such fiscal year and the

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Management Fee payable to the Asset Manager in connection therewith, pursuant to this
Management Agreement, (b) the Management Fee already paid by the Partnership to the Asset Manager
during such fiscal year, and (c) either the amount owed to the Asset Manager by the Partnership
(which shall be the excess, if any, of the Management Fee payable to the Asset Manager for such
fiscal year pursuant to this Agreement over the Management Fee actually paid by the Partnership to
the Asset Manager for such fiscal year) or the amount owed to the Partnership by the Asset Manager
(which shall be the excess, if any, of the Management Fee actually paid by the Partnership to the
Asset Manager for such fiscal year over the Management Fee payable to the Asset Manager for such
fiscal year pursuant to this Agreement). The Asset Manager or the Partnership, as the case may be,
shall pay to the other the amount owed pursuant to clause (c) above within five (5) Business Days
of the receipt by the Advisor and the Fund GP of the written statement of reconciliation described
in this Section 11. In addition, in those cases in which a tenant of any Qualified
Property requests that the Partnership provide property management services at such tenant’s
expense, Managing General Partner shall be entitled to an oversight fee for such property
management services for the tenant of such Qualified Property equal to one half of one percent
(0.50%) of the net rent from such Qualified Property, payable by the tenant of such Qualified
Property.

     12. Assignment. The Asset Manager may not assign or delegate any of its rights or
obligations hereunder.

     13. Notices. Unless otherwise specifically provided herein, any notice or other
communication required herein shall be given in accordance with the Partnership Agreement.

     14. Amendments and Waivers. No amendment, modification, termination or waiver of any
provision of this Management Agreement shall in any event be effective without the written
concurrence of the Partnership. Any waiver or consent shall be effective only in the specific
instance and for the specific purpose for which it was given.

     15. Governing Law. THIS MANAGEMENT AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF
THE STATE OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

     16. Entire Agreement. This Management Agreement embodies the entire agreement of the
parties with respect to the subject matter hereof and supersedes all prior agreements, written and
oral, relating to the subject matter hereof.

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     17. Severability. In case any provision in or obligation under this Management
Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality
and enforceability of the remaining provisions or obligations, or of such provision or obligation
in any other jurisdiction, shall not in any way be affected or impaired thereby.

     18. No Waiver, etc. No waiver by the Partnership of any default hereunder shall be
effective unless such waiver is in writing and executed by the Partnership nor shall any such
written waiver operate as a waiver of any other default or of the same default on a subsequent
occasion. Furthermore, the Partnership shall not, by any act, delay, omission or otherwise, be
deemed to have waived any of its rights, privileges and/or remedies hereunder, and the failure or
forbearance of the Partnership on one occasion shall not prejudice or be deemed or considered to
have prejudiced its right to demand such compliance on any other occasion.

     19. No Third Party Beneficiary. The Asset Manager is not a third party beneficiary of
the Partnership Agreement and shall have no rights or remedies thereunder, and the parties to the
Partnership Agreement can amend, modify or terminate the Partnership Agreement at any time without
the Asset Manager’s consent and without any liability to the Asset Manager.

[THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]

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     IN WITNESS WHEREOF, the parties hereto have caused this Management Agreement to be duly
executed and delivered by their respective officers thereunto duly authorized as of the date first
written above.

	 	 	 	 	 	 	 
	PARTNERSHIP	 	LEXINGTON/LION VENTURE LP a Delaware limited partnership
	 
	 	 	 	 	 	 
	 	 	By:	 	LXP GP, LLC, a Delaware limited liability company, the managing member
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ T. Wilson Eglin
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: T. Wilson Eglin
	 

	 	 	 	 	 	Its: President
	 
	 	 	 	 	 	 
	ASSET MANAGER	 	LEXINGTON REALTY ADVISORS, INC.
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ T. Wilson Eglin
	 	 	 	 	 
	 	 	 	 	Name: T. Wilson Eglin
	 	 	 	 	Its: President

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APPENDIX 1

PROPERTY MANAGEMENT RESPONSIBILITIES

     The Asset Manager shall perform its duties and obligations under Section 2 of the
Management Agreement with respect to the management of the Qualified Properties in accordance with
the following standards:

     1. Management of the Qualified Properties. Asset Manager shall devote its
commercially reasonable efforts, consistent with first class professional management, to manage the
Qualified Properties, and shall perform its duties with respect thereto under the Management
Agreement in accordance with the Partnership Agreement and Annual Plan and in a reasonable,
diligent and careful manner so as to manage and supervise the operation, maintenance, leasing and
servicing of each Qualified Property in a manner that is comparable to similar properties in the
market area in which such Qualified Property is located. The services of Asset Manager hereunder
are to be of a scope and quality not less than those generally performed by professional managers
of other similarly situated properties in the market area in which each Qualified Property is
located. Asset Manager shall make available to the Partnership the full benefit of the judgment,
experience and advice of the members of Asset Manager’s organization and staff with respect to the
policies to be pursued by the Partnership and will perform such services as may be requested by the
Partnership within the scope of the Management Agreement in operating, maintaining, leasing, and
servicing each Qualified Property.

     2. Specific Duties of Asset Manager. Without limiting the duties and obligations of
Asset Manager under any other provisions of the Management Agreement, Asset Manager shall have the
following duties and perform the following services with respect to management of the Qualified
Properties:

          2.1 Repairs and Maintenance. In accordance with and subject to the Partnership
Agreement and the Annual Plan, Asset Manager shall cause to be made, or ensure that the tenant
makes, all repairs and shall cause to be performed, or ensure that the tenant performs, all
maintenance on the buildings, appurtenances and grounds of each Qualified Property as are required
to maintain each Qualified Property in such condition and repair (and in compliance with applicable
codes) that is comparable to similarly situated properties in the market area in which such
Qualified Property is located, and such other repairs as may be required to be made under the
leases governing each Qualified Property. Asset Manager shall to the extent it deems necessary
arrange for periodic inspections of the Qualified Properties by independent contractors.

 

 

          2.2 Leasing Supervision Activities.

          (a) Leasing Supervision. Asset Manager shall supervise all leasing activities, for
the purpose of leasing the available space in the Qualified Properties to tenants upon such terms
and conditions as shall be consistent with the Partnership Agreement and the Annual Plan.

          (b) Generally. In the performance of Asset Manager’s duties under this Section 2.2,
Asset Manager shall (i) develop and coordinate advertising, marketing and leasing plans for space
at each Qualified Property that is vacant or anticipated to become vacant; (ii) cooperate and
communicate with leasing specialists, consultants and third-party brokers in the market, and
solicit their assistance with respect to new tenant procurement; and (iii) notify the Partnership
in writing of all offers for tenancy at each Qualified Property which Asset Manager believes are
made in good faith, including the identification and fee schedules of procuring brokers, if any.

          (c) Negotiation of Leases. Asset Manager shall negotiate all tenant leases,
extensions, expansions and other amendments and related documentation on the Partnership’s behalf
in accordance with the Partnership Agreement and the Annual Plan. All such documentation shall be
prepared at the Partnership’s expense by counsel acceptable to or designated by the Partnership,
and shall be executed by the Partnership. The terms of all such documentation are to be approved by
the Partnership pursuant to such reasonable procedures as may be requested by the Partnership from
time to time. Notwithstanding the foregoing, (x) Asset Manager shall not, for any reason, have the
power or authority to execute any such documentation on behalf of the Partnership or otherwise bind
the Partnership without the Partnership’s prior written consent, and (y) the Partnership reserves
the right to deal with any prospective tenant to procure any such lease, extension, expansion or
other amendment or related documentation.

          (d) Third Party Brokers. Asset Manager shall encourage third-party real estate
brokers to secure tenants for the Qualified Properties, and periodically notify such brokers of the
spaces within the Qualified Properties that are available for lease.

          (e) Compensation for Third-Party Brokers. Asset Manager shall negotiate and enter
into on behalf of the Partnership a commission agreement with third party brokers providing for a
leasing commission to be paid at prevailing market rates, subject to prevailing market terms and
conditions. Such leasing commission shall be paid by the Partnership.

          2.3 Rents, Billings and Collections. Asset Manager shall be responsible for the
monthly billing of rents and all other charges due from tenants to the Partnership with respect to
each Qualified Property. Asset Manager shall use its commercially reasonable efforts to collect
all such rents and other charges when due. Asset Manager shall notify the Partnership and the
Advisor of all tenant defaults as soon

 

 

as reasonably practicable after occurrence, and shall provide the Partnership and the Advisor
with Asset Manager’s best judgment of the appropriate course of action in remedying such tenant
defaults.

          2.4 Obligations Under Leases. Asset Manager shall supervise and use its commercially
reasonable efforts to cause the Partnership to perform and comply, duly and punctually, with all of
the obligations required to be performed or complied with by the Partnership under all leases and
all laws, statutes, ordinances, rules, permits and certificates of occupancy relating to the
operation, leasing, maintenance and servicing of the Qualified Properties, including, without
limitation, the timely payment by the Partnership of all sums required to be paid thereunder.

          2.5 The Partnership’s Insurance. If requested by the Partnership, the Asset Manager
shall cause to be placed and kept in force all forms of insurance required by the Partnership
Agreement and the Annual Plan or required by any mortgage, deed of trust or other security
agreement covering all or any part of any Qualified Property. The Asset Manager is to be named as
an additional insured on the general liability policies in its capacity as managing agent. All such
insurance coverage shall be placed through insurance companies and brokers selected or approved by
the Partnership, with limits, values and deductibles established by the Partnership and with such
beneficial interests appearing therein as shall be acceptable to the Partnership and otherwise be
in conformity with the requirements of the Partnership Agreement and the Annual Plan. Should the
Partnership elect to place such insurance coverage directly, the Asset Manager shall be named as an
additional insured on the general liability policies in its capacity as managing agent and the
Partnership will provide the Asset Manager with a certificate of insurance evidencing such
coverage. If requested to do so by the Partnership, the Asset Manager shall duly and punctually pay
on behalf of the Partnership with funds provided by the Partnership all premiums with respect
thereto, prior to the time the policy would lapse due to nonpayment. If any lease requires that a
tenant maintain any insurance coverage, the Asset Manager shall use its commercially reasonable
efforts to obtain insurance certificates annually, or more frequently, as required pursuant to the
applicable leases, from each such tenant and review the certificates for compliance with the lease
terms. If any lease requires the Partnership to provide insurance certificates to tenants
thereunder, the Asset Manager shall obtain such insurance certificates from the Partnership, review
the certificates for compliance with the lease terms, and provide a copy thereof to tenants in
accordance with their respective leases. The Asset Manager shall promptly investigate and make a
full and timely written report to the insurance broker, with a copy to the Partnership, as to all
accidents, claims or damage of which the Asset Manager has knowledge relating to the operation and
maintenance of each Qualified Property, any damage or destruction to each Qualified Property, and
the estimated cost of repair thereof, and shall prepare any and all reports required by any
insurance company in connection therewith. All such reports shall be filed timely with the
insurance broker as required under the terms of the insurance policy involved. The Asset Manager
shall have no right to settle, compromise or otherwise

 

 

dispose of any claims, demands or liabilities, whether or not covered by insurance, without
the prior written consent of the Partnership, which consent may be withheld by the Partnership in
its sole discretion.

          2.6 Asset Manager’s Insurance. The Asset Manager or the Managing General Partner or
LXP will obtain and maintain on the Asset Manager’s behalf, at the Asset Manager’s or the Managing
General Partner’s or LXP’s expense, the following insurance:

          (a) Commercial general liability on an occurrence form for bodily injury and property damage
with limits of One Million Dollars ($1,000,000) combined single limit each occurrence and Two
Million Dollars ($2,000,000) from the aggregate of all occurrences within each policy year,
including but not limited to Premises-Operation, Products/Completed Operations, Hazard and
Contractual Coverage (including coverage for the indemnity clause provided under the Management
Agreement) for claims arising out of actions beyond the scope of Asset Manager’s duties or
authority under the Management Agreement.

          (b) Comprehensive form automobile liability covering hired and non-owned vehicles with limits
of One Million Dollars ($1,000,000) combined single limit per occurrence.

          (c) Employer’s liability insurance in an amount not less than Five Hundred Thousand Dollars
($500,000).

          (d) Excess liability (umbrella) insurance on the above with limits of Two Million Dollars
($2,000,000).

          (e) Workers’ compensation insurance in accordance with the laws of the state with
jurisdiction.

          (f) Either (x) blanket crime coverage protecting the Asset Manager against fraudulent or
dishonest acts of its employees, whether acting alone or with others, with limits of liability of
not less than One Million Dollars ($1,000,000) per occurrence (any loss within any deductible shall
be borne by the Asset Manager) or (y) a fidelity or financial institution bond in an amount no less
than One Million Dollars ($1,000,000.00) bonding the employees of the Asset Manager who handle or
who are responsible for funds belonging to the Partnership.

          (g) Professional liability insurance covering the activities of the Asset Manager written on a
“claim made” basis with limits of at least One Million Dollars ($1,000,000). Any loss within any
deductible shall be borne by the Asset Manager. Coverage shall be maintained in effect during the
period of the Management Agreement and for not less than two (2) years after termination of the
Management Agreement.

 

 

     Each of the above policies will contain provisions giving the Partnership and the Advisor at
least thirty (30) days’ prior written notice of cancellation of coverage. The policies referred to
in items (a) and (d) above will name the Partnership and the Advisor as additional insureds, and
the policies referred to in item (f) above will name the Partnership as loss payee. The Asset
Manager will provide the Partnership and the Advisor with evidence of all required coverages.

     Such insurance shall be placed with reputable insurance companies licensed or authorized to do
business in the states in which the Qualified Properties are located with a minimum Best’s rating
of AX.

     The Partnership and the Asset Manager agree that the insurance policies summarized on
Appendix 2 to this Exhibit B (Form of Management Agreement) are consistent with the
standards listed above with respect to the types and amounts of insurance the Asset Manager is
required to obtain.

          2.7 Compliance with Insurance Policies; Compliance by Tenants with Tenant Leases.
Asset Manager shall use its commercially reasonable efforts to prevent the use of each Qualified
Property for any purpose that might void any policy of insurance held by the Partnership, or any
tenant at each Qualified Property, that might render any loss insured thereunder uncollectible or
that would be in violation of any governmental restriction or the provisions of any lease. Asset
Manager shall use its commercially reasonable efforts to secure full compliance by the tenants with
the terms and conditions of their respective leases, including, but not limited to, periodic
maintenance of all building systems, including individual tenant’s heating, ventilation and air
conditioning systems.

          2.8 Intentionally Omitted.

          2.9 Tenant Relations. Asset Manager will maintain reasonable contact with the tenants
of the Qualified Properties and keep the Partnership and the Advisor informed of the tenants’
concerns, expansion or contraction plans, changes in occupancy or use, and other matters that could
have a material bearing upon the leasing, operation or ownership of each Qualified Property.

          2.10 Compliance with Laws. Asset Manager shall use its commercially reasonable efforts
to determine such action that may be necessary, inform the Partnership of action as may be
necessary and, when authorized by the Partnership, take such action that may be necessary to cause
the Qualified Properties to comply with all current and future laws, rules, regulations, or
ordinances affecting the ownership, use or operation of each Qualified Property; provided,
however, that Asset Manager need not obtain the prior authorization of the Partnership to take
action in case of an emergency or any threat to life, safety or property, so long as Asset Manager
shall give the Partnership prompt notice of any such action taken.

 

 

     2.11 Cooperation. Should any claims, demands, suits, or other legal proceedings be
made or instituted by any third party against the Partnership that arise out of any matters
relating to a Qualified Property or the Management Agreement or Asset Manager’s performance
hereunder, Asset Manager shall promptly give the Partnership all pertinent information and
assistance in the defense or other disposition thereof; provided, however, in the event the
foregoing requires Asset Manager to incur any expenses beyond the ordinary cost of performing its
obligations under the Management Agreement, the Partnership shall pay for any such out-of-pocket
costs of which the Partnership has been advised in writing.

     2.12 Notice of Complaints, Violations and Fire Damage. Asset Manager shall respond to
complaints and requests from tenants within thirty (30) days of Asset Manager’s having received any
material complaint made by a tenant or any alleged landlord default under any lease. Additionally,
Asset Manager shall notify the Partnership and Advisor as soon as is reasonably practical (such
notice to be accompanied by copies of supporting documentation) of each of the following: any
notice of any governmental requirements received by Asset Manager; upon becoming aware of any
material defect in a Qualified Property; and upon becoming aware of any fire or other material
damage to any Qualified Property. In the case of any fire or other material damage to a Qualified
Property, Asset Manager shall also notify the Partnership’s insurance broker telephonically, so
that an insurance adjuster has an opportunity to view the damage before repairs are started, and
complete customary loss reports in connection with fire or other damage to a Qualified Property.

     2.13 Notice of Damages and Suits; Settlement of Claims. Asset Manager shall notify the
Partnership’s general liability insurance broker and the Partnership as soon as is reasonably
practical of the occurrence of any bodily injury or property damage occurring to or claimed by any
tenant or third party on or with respect to a Qualified Property, and promptly forward to the
broker, with copies to the Partnership and the Advisor, any summons, subpoena or other like legal
documents served upon Asset Manager relating to actual or alleged potential liability of the
Partnership, Asset Manager or a Qualified Property. Notwithstanding the foregoing, Asset Manager
shall not be authorized to accept service of process on behalf of the Partnership, unless such
authority is otherwise imputed by law. The Asset Manager shall have no right to settle, compromise
or otherwise dispose of any claims, demands, or liabilities, whether or not covered by insurance,
without the prior written consent of the Partnership, which consent may be withheld by the
Partnership in its sole discretion.

     2.14 Enforcement of Leases. The Asset Manager shall enforce compliance by tenants with
each and all of the terms and provisions of the leases, provided, however, that
Asset Manager shall not, without the prior written consent of the Partnership in each instance,
which consent may be withheld by the Partnership in its sole discretion, institute legal
proceedings in the name of the Partnership to enforce leases, collect income and rent or dispossess
tenants or others occupying a Qualified Property or

 

 

any portion thereof, or terminate any lease, lock out a tenant, or engage counsel or institute
any proceedings for recovery of possession of a Qualified Property if any such action by the Asset
Manager would constitute a Major Decision.

          2.15 Environmental.

          (a) Notice. The Asset Manager shall promptly advise the Partnership and the Advisor in
writing of any evidence of non-compliance with any Environmental Laws, which Asset Manager is aware
of, together with a written report of the nature and of the non-compliance and the potential
threat, if any, to the health and safety of persons and/or damage to each Qualified Property or the
property adjacent to or surrounding each Qualified Property. The Partnership acknowledges that (A)
Asset Manager is not an environmental engineer and does not have any special expertise in the
Environmental Laws, (B) Asset Manager’s duties under this Section 2.15 are limited to the
quality of reasonable commercial care and diligence customarily applied to property managers of
triple net leased properties.

          (b) Rights; Limitations. Without limiting any other provision contained herein and
subject to Section 2.14, Asset Manager shall use commercially reasonable efforts to enforce the
Partnership’s rights under the leases insofar as any tenant’s compliance with Environmental Laws
are concerned; provided, however, Asset Manager shall hold in confidence all
information bearing on Environmental Laws and hazardous materials, except to the extent expressly
instructed otherwise in writing by the Partnership, or except to the extent necessary to protect
against the imminent threat to the life and safety of persons and/or damage to a Qualified Property
or damage to the property adjacent to or surrounding such Qualified Property, or except to the
extent such disclosure is required by Environmental Laws, other laws, or court order.

          2.16 Monitoring of Tenant Improvements. The Asset Manager shall monitor the
construction and installation of material tenant improvements undertaken by the tenant under any
lease and act as the Partnership’s liaison with such tenant’s construction managers and contractors
(or other supervisors of a tenant’s build-out).

 

 

APPENDIX 2

SUMMARY OF LXP INSURANCE POLICIES

[Omitted from filing]EX-10.77

 

Exhibit 10.77

COMMON SHARE DELIVERY AGREEMENT

     This Common Share Delivery Agreement (the “Agreement”) is being made as of the 29th day of
January, 2007 by and between The Lexington Master Limited Partnership, a Delaware limited
partnership (the “MLP”), and Lexington Realty Trust, a Maryland real estate investment trust (the
“Company”).

Recitals 

     WHEREAS, the Company is the parent of the sole general partner of the MLP; and

     WHEREAS, the MLP, the Company and certain subsidiaries of the Company have entered into a
Purchase Agreement, dated January 23, 2007, with Bear, Stearns & Co. Inc. and Lehman Brothers Inc.
and the other several initial purchasers named in Schedule I thereto (collectively, the “Initial
Purchasers”), providing for the sale to the Initial Purchasers by the MLP of $250,000,000 aggregate
principal amount of its 5.45% Exchangeable Guaranteed Notes due 2027 (the “Notes”) under the
Indenture, dated as of January 29, 2007 (as supplemented by the First Supplemental Indenture
thereto dated as of January 29, 2007, the “Indenture”), among the MLP, as Issuer, the Company and
the subsidiary guarantors parties thereto, as Guarantors, and U.S. Bank National Association, as
Trustee, and granting the Initial Purchasers an option to purchase up to an additional $50,000,000
in aggregate principal amount of the Notes, which Notes shall be exchangeable for cash or a
combination of cash and common shares of beneficial interest, par value $0.0001 per share, of the
Company (the “Common Shares”) under certain circumstances; and

     WHEREAS, the Company and certain subsidiaries of the Company will fully and unconditionally
guarantee the payment of the principal of the Notes and interest on the Notes.

     NOW, THEREFORE, in consideration of the foregoing and in consideration of the mutual covenants
contained herein, the parties agree as follows:

Agreement 

     1. If the MLP determines, in its sole discretion, to deliver Common Shares in respect of all
or any portion of the Net Amount (as such term is defined in the Notes) upon an exchange of the
Notes by a holder in accordance with the terms of the Notes and the Indenture, the Company agrees
to issue to the MLP for delivery to such holder the number of Common Shares determined by the MLP
to be delivered to such holder in respect of the Notes exchanged, and the MLP hereby directs the
Company to deliver such Common Shares to such holder on behalf of the MLP in accordance with the
terms of the Notes and the Indenture.

     2. The MLP agrees to issue to the Company on a concurrent basis a number of “Common Units” (as
defined in the Second Amended and Restated Agreement of Limited Partnership of the MLP, as amended
from time to time) equal in number to the number of Common Shares issued by the Company pursuant to
this Agreement.

 

 

     3. Miscellaneous.

          (a) This Agreement shall be governed by and construed in accordance with the laws of the State
of New York.

          (b) No provision of this Agreement may be amended, modified or waived, except in writing
signed by both parties.

          (c) In the event that any claim of inconsistency between this Agreement and the terms of the
Indenture arise, as they may from time to time be amended, the terms of the Indenture shall
control.

          (d) If any provision of this Agreement shall be held illegal, invalid or unenforceable by any
court, this Agreement shall be construed and enforced as if such provision had not been contained
herein and shall be deemed an Agreement between the parties hereto to the full extent permitted by
applicable law.

          (e) This Agreement shall be binding upon, inure to the benefit of and be enforceable by the
respective successors and assigns of the parties hereto.

          (f) This Agreement may not be assigned by either party without the prior written consent of
both parties.

[Signature page follows]

-2-

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their duly authorized
officers as of the day and year above written.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	THE LEXINGTON MASTER LIMITED PARTNERSHIP, a Delaware	 	 
	 	 	limited partnership	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Lex GP-1 Trust, its general partner, a Delaware

statutory trust	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ T. Wilson Eglin	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	T. Wilson Eglin	 	 
	 

	 	Title:
	 	Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	LEXINGTON REALTY TRUST	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ T. Wilson Eglin	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	T. Wilson Eglin	 	 
	 

	 	Title:
	 	Chief Executive Officer

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