Document:

Exhibit 10.4

 

AGREEMENT OF SUBLEASE

 

between

 

ARAMIS INC.

 

Sublandlord

 

and

 

RSL MANAGEMENT CORP.

 

Subtenant

 

Demised Premises:  premises
comprising a portion of the 42nd floor of

767 Fifth Avenue New York, New York 10153

 

 

Table of Contents

 

	
  Paragraph

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Subleasing of Demised
  Premises

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Term

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Fixed Rent; Additional
  Rent; Rental

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Subordination to the
  Prime Lease; Incorporation of the Prime Lease

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Covenants of Subtenant

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Services, Repairs and
  Improvements

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  Liability of
  Sublandlord; Sublandlord’s Covenants

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  Indemnification

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  Assignment, Subletting
  and Mortgaging

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  Time Limits

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  Notices

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
  Termination of Prime
  Lease

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
  Damage, Destruction,
  Fire and Other Casualty; Condemnation

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
  End of Term

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
  Guarantee

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
  Costs

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
  Miscellaneous

  	
   

  	
  11

  

 

 

AGREEMENT
OF SUBLEASE

 

AGREEMENT
OF SUBLEASE, made as of the 1st day of April, 2005, between ARAMIS INC., a Delaware
corporation, and a wholly-owned subsidiary of THE ESTÉE LAUDER COMPANIES INC., having
an address at 767 Fifth Avenue, New York, New York 10153 (“Sublandlord”),
and RSL MANAGEMENT CORP., a Delaware corporation, having an address at 767
Fifth Avenue, New York, New York 10153 (“Subtenant”).

 

W I T N E S S E T H :

 

WHEREAS,
by that certain Lease dated as of July 10, 2003, between 767 Fifth Avenue,
LLC (“Landlord”), as landlord, and Sublandlord, as tenant, as amended
pursuant to (i) that certain First Amendment to Lease dated as of April 1,
2004, between Landlord and Sublandlord, and (ii) that certain Second
Amendment to Lease dated as of December 28, 2004, between Landlord and
Sublandlord (as amended, the “Prime Lease”), Prime Landlord leased to
Sublandlord certain premises (the “Premises”), more particularly
described in the Prime Lease, located on the 37th through 43rd floors, the 45th
and 46th floors, the 6th floor, and concourse and basement levels of the
building situated in the Borough of Manhattan, City, County and State of New
York and known by the street address 767 Fifth Avenue, New York, New York 10153
(the “Building”), for a term expiring at noon on March 31, 2020.

 

WHEREAS,
Sublandlord desires to sublease to Subtenant a portion of the Premises as
hereinafter more particularly described, and Subtenant desires to lease the
same from Sublandlord, all upon the terms and conditions hereinafter set forth.

 

NOW,
THEREFORE, in consideration of mutual covenants herein contained, Sublandlord
and Subtenant mutually agree as follows:

 

1.  Subleasing
of Demised Premises.  Sublandlord
hereby subleases to Subtenant, and Subtenant hereby subleases, hires and takes
from Sublandlord, all of the Sublandlord’s right, title and interest in that portion
of the Premises located on the 42nd floor of the Building and shown hatched in
black on the plan annexed as Exhibit A hereto and made a part
hereof (the “Demised Premises”) together with the right to use all
common facilities (including bathroom facilities) that are located in the
remainder of the Premises and are necessary or desirable for the use and
occupancy of the Demised Premises, upon and subject to the terms and conditions
hereinafter set forth.

 

2.  Term.  The term (the “Term”) of this Sublease
shall commence on April 1, 2005 (the “Term Commencement Date”) and
shall expire at 11:59 p.m. on March 31, 2010 (the “Expiration Date”),
unless such Term is sooner terminated as hereinafter provided.  Subtenant shall have no options to extend the
term of this Sublease.

 

3

 

3.  Fixed
Rent; Additional Rent; Rental.

 

A.  During the
Term, Subtenant agrees to pay to Sublandlord, in currency which at the time of
payment is legal tender for public and private debts in the United States of
America, fixed rent (“Fixed Rent”) in the amount of Six Hundred Eighty
Three Thousand Five Hundred Forty Three and 06/100 Dollars ($683,543.06) per
annum commencing on the Term Commencement Date and ending on the Expiration Date.  Fixed Rent shall be payable in equal monthly
installments in advance on the first day of each and every calendar month
during the Term.

 

B.  During the
Term, Subtenant agrees to pay to Sublandlord, within ten (10) (days of
demand therefor, in currency which at the time of payment is legal tender for
public and private debts in the United States of America, as additional rent (“Additional
Rent”), an amount equal to Subtenant’s Proportionate Share (hereinafter
defined) of all and any Additional Rent (as defined in the Prime Lease) and all
other sums or charges as shall become due from and payable by Sublandlord to
the Prime Landlord under the Prime Lease and which is properly allocable to the
42nd floor of the Premises, including, without limitation, all sums or charges
payable by Sublandlord on account of the 42nd floor of the Premises pursuant to
Articles 4, 5, 15, 16 and 17 of the Prime Lease.  In the event that Sublandlord receives a
refund or credit in respect of any item for which Subtenant has paid Additional
Rent hereunder, Sublandlord agrees to reimburse or allow a credit to Subtenant
for Subtenant’s Proportionate Share of such refund or credit, such refund or
credit to be in the same form as provided to Sublandlord.  As used in this Sublease, the term “Subtenant’s
Proportionate Share” shall mean 20.72%, provided that Subtenant
shall be required to pay 100% of any Additional Rent under the Prime Lease that
relates solely to the operation, occupancy or use of the Demised Premises.  Subtenant’s payment for electrical energy
shall be determined based upon Subtenant’s use of electrical energy and the
rates for the entire 42nd floor of the Building.  The payment of Additional Rent pursuant to
this Paragraph is an obligation supplemental to the obligation to pay Fixed
Rent, which Fixed Rent shall not be reduced under any circumstances whatsoever
(except to the extent Sublandlord receives a corresponding reduction in the
Fixed Rent payable under the Prime Lease and such reduction is properly
allocable to premises including the Demised Premises).  Nothing contained herein shall require
Subtenant to pay for any services provided solely to the portion of the
Premises not covered by this Sublease (such portion of the Premises being
hereinafter referred to as the “Sublandlord’s Premises”) or for any
Additional Rent under the Prime Lease that relates solely to the operation,
occupancy or use of the Sublandlord’s Premises.

 

C.  All of the
amounts payable by Subtenant pursuant to this Sublease, including, without limitation,
Fixed Rent, Additional Rent and all other costs, charges, sums and deposits
payable by Subtenant hereunder (collectively, “Rental”), shall
constitute rent under this Sublease.  The
Fixed Rent and any Additional Rent payable hereunder shall be prorated for any
period of less than a full calendar month or year, as applicable.  Sublandlord shall, simultaneously with the
delivery of any bill for Additional Rent hereunder, deliver to Subtenant a copy
of any invoice received by Sublandlord from Prime Landlord on account of
Additional Rent under the Prime Lease and a statement showing the calculation
of the Additional Rent payable hereunder.

 

4

 

D.  Subtenant
shall promptly pay the Rental as and when the same shall become due and
payable, at the office of the Sublandlord, as set forth above, or at such other
place as Sublandlord may designate, without setoff or deduction of any kind
whatsoever (except as otherwise expressly provided for herein) and, in the event
of Subtenant’s failure to pay same when due, Sublandlord shall have, in
addition to all of the rights and remedies provided for herein or at law or in
equity in the case of nonpayment of rent, the right (but not the obligation) to
immediately terminate this Sublease.

 

E.  Notwithstanding
anything to the contrary in this Sublease, Subtenant agrees to promptly pay
directly to any federal, state, municipal or other public authority, any
charges, assessments or fees, as and when they become due, (including but not
limited to the New York City occupancy tax), to the extent that such charges,
assessments or fees are due and payable as a direct result of Subtenant’s use
and occupancy of the Premises.

 

4. 
Subordination to the Prime Lease; Incorporation of the Prime
Lease.

 

A. 
This Sublease is in all respects subject and subordinate to the
terms and conditions of the Prime Lease (copies of which have been furnished by
Sublandlord to Subtenant and Subtenant acknowledges receipt of same), all
superior leases and mortgages (as defined in the Prime Lease) which may now or
hereafter affect the Demised Premises and to all renewals, modifications,
consolidations, replacements and extensions of any such superior leases or
mortgages.  This paragraph shall be self-operative
and no further instrument of subordination shall be required.  In confirmation of such subordination,
Subtenant shall execute promptly any certificate or other document evidencing
such subordination that Sublandlord or Prime Landlord may request.  It is understood and agreed that nothing
herein shall affect the rights and obligations of Prime Landlord under the
Prime Lease.

 

B. 
Except as otherwise expressly provided in this Sublease, the
terms, provisions, covenants, stipulations, conditions, rights, obligations,
events of default, remedies and agreements contained in the Prime Lease are
incorporated herein by reference and are made a part hereof as if herein set
forth at length and shall apply in all respects to the Demised Premised.  Subtenant shall have the rights and
obligations of “Tenant” under the Prime Lease as they relate to the Demised
Premises, including, without limitation, the right to receive all services to
be provided by Prime Landlord pursuant to Articles 15, 16 and 17 and Exhibits D
and F (notwithstanding that such provisions are not incorporated herein by
reference).  Sublandlord shall have the
rights but not the obligations of “Landlord” under the Prime Lease as they
relate to the Demised Premises. 
References in the Prime Lease to “Demised Premises”, “Landlord” and “Tenant”
shall mean the Demised Premises and any improvements thereon, Sublandlord, and
Subtenant, respectively, provided that the references to the “Landlord”
in the following provisions of the Prime Lease shall be deemed to refer only to
Prime Landlord: Sections 2.05, 6.01, 18.01, 18.02, 18.03, 18.06, 18.07, 18.08,
21.01, 22.01, 22.05 and 36.02.

 

5

 

C. 
The following provisions of the Prime Lease (and all references
thereto in the provisions of the Prime Lease incorporated herein by reference)
are hereby deleted for purposes of incorporation herein and shall have no force
or effect as between Sublandlord and Subtenant: 
Articles 1, 3, 4, 5, 8, 15, 16, 17, 38, 40, 41 and 42, 43, Sections 3.02,
3.03, 3.04, 6.06, 14.02, 39.02, 39.03, 39.04, 39.06, Exhibits A, B, D, G, H and
I and all references and provisions applicable to the Concourse and Basement
Premises.

 

D. 
In the event of inconsistency between the Prime Lease and this
Sublease, such inconsistency (i) if it relates to obligations of or
restrictions on Subtenant, shall be resolved in favor of that obligation which
is more onerous to Subtenant or that restriction which is more restrictive of
Subtenant, as the case may be, or (ii) if it relates to the rights of or
benefits to be conferred on Subtenant, shall be resolved in favor of the Prime
Lease.  Moreover, in the event that any
term and/or condition of this Sublease shall conflict with, or be inconsistent
with, any term and/or condition of the Prime Lease, or if exercised hereunder
would constitute a default under or breach of the Prime Lease, this Sublease
shall be deemed amended to comply or be consistent with the Prime Lease.  Subtenant shall not take or suffer any action
in connection with its use and enjoyment of the Sublease Demised Premises which
would constitute a default under, or be a violation of, the Prime Lease.

 

E. 
In all provisions of the Prime Lease requiring the approval or
consent of the “Landlord”, Subtenant shall be required to obtain the approval
or consent of both the Prime Landlord and Sublandlord, which approval will not
be unreasonably withheld or delayed by Sublandlord.  In any case, where the approval or consent of
Prime Landlord is required, Sublandlord agrees, at the sole cost and expense of
Subtenant, to request such approval or consent from Prime Landlord promptly
after its receipt of a request therefor from Subtenant and to use its
reasonable and good faith efforts to obtain such approval or consent.  In all provisions of the Lease requiring that
notice be given to the “Landlord”, Subtenant shall be required to give notice
to the Prime Landlord and Sublandlord.

 

5. 
Covenants of Subtenant. 
With respect to the Demised Premises and any improvements thereon only,
from and after the Term Commencement Date, Subtenant assumes and shall keep,
observe and perform every term, provision, covenant and condition on
Sublandlord’s part to be kept, observed and performed pursuant to the Prime
Lease, and Subtenant’s obligations with respect to the Demised Premises and any
improvements thereon, only, shall run to Sublandlord or Prime Landlord, as
Sublandlord may determine to be appropriate or required by the respective
interests of Sublandlord and Prime Landlord. 
Subject to the provisions of this Sublease, Subtenant covenants and
agrees that Subtenant shall not (i) take any action or do or permit to be
done anything which would result in any additional cost or expense or other
liability being incurred by Sublandlord under the Prime Lease, or (ii) do
or permit to be done anything that would constitute a default under the Prime
Lease or omit to do anything that Subtenant is obligated to do under the terms
of this Sublease or the Prime Lease, as incorporated 

 

6

 

herein, so as to cause there to be a default under the
Prime Lease.  The provisions of this
Paragraph 5 shall survive the expiration or earlier termination of this
Sublease.

 

6. 
Services, Repairs and Improvements.

 

A. 
Subtenant agrees that, notwithstanding anything to the contrary
in this Sublease or in the Prime Lease, Sublandlord shall not be required to
provide any of the services, make any of the repairs or restorations, comply
with any laws or requirements of any governmental authorities or take any other
action that Prime Landlord has agreed to provide, make, comply with or take or
cause to be provided, made, complied with or taken under the Prime Lease, and
Subtenant shall rely upon, and look solely to, Prime Landlord for the provision
or making thereof or compliance therewith. 
If Prime Landlord shall fail to provide any of the services or make any
of the repairs that Prime Landlord has agreed to provide or make, Sublandlord
agrees to use reasonable efforts to obtain same from Prime Landlord but
Subtenant shall rely upon, and look solely to, Prime Landlord for the provision
or making thereof.  Subtenant shall also
have the right in its own name to require performance of Prime Landlord’s
obligations under the Prime Lease. 
Subtenant may also make its own arrangements with Prime Landlord for
additional services not required to be performed by Prime Landlord under the
Prime Lease provided  that the costs and expenses thereof or
therefor shall be borne solely by Subtenant. 
If Prime Landlord refuses to recognize Subtenant’s request, Sublandlord
shall, at the request and sole cost and expense of Subtenant, reasonably
cooperate with Subtenant in requesting Prime Landlord to provide such
additional services.  Subtenant shall not
make any claim against Sublandlord for any damage which may arise, nor shall
Subtenant be excused or relieved of its obligations hereunder (except to the
extent that Sublandlord is excused or relieved from its corresponding
obligations under the Prime Lease with respect to premises including the
Demised Premises), by reason of (i) the failure of Prime Landlord to keep,
observe or perform any of its obligations pursuant to the Prime Lease, or (ii) the
acts or omissions of Prime Landlord, its agents, officers, directors, contractors,
servants, employees, invitees or licensees.

 

B. 
Sublandlord shall use its reasonable efforts to provide to the
Demised Premises certain cleaning, repair and maintenance services as are being
provided to the remainder of the Premises (the “Services”).  Subtenant shall pay to Sublandlord, as
Additional Rent hereunder, Subtenant’s Proportionate Share of the actual costs
and expenses incurred by Sublandlord for the provision of such Services, provided
however, that with respect to any Services supplied solely to Suite 4200
of the Building, (comprising the demised premises and additional office space
of 2537 square feet), Subtenant shall be required to pay 71.96% of any costs
and expenses for the provision of such Services.  The Additional Rent referred to in the
previous sentence shall be payable quarterly by Subtenant within ten (10) days
after notice from the Sublandlord setting forth the quarterly amount due.  Sublandlord reserves the right, without any
liability to Subtenant, except as otherwise expressly provided in this
Sublease, and without being in breach of any covenant of this Lease to stop,
interrupt or suspend any Services to the Demised Premises, whenever and for so
long as may be necessary, by reason of accidents, emergencies, strikes or the
making of repairs or changes which Sublandlord is 

 

7

 

required by the Prime Lease or by law to make or in
good faith deems advisable, or by reason of difficulty in securing proper supplies
of fuel, steam, water, electricity, labor or supplies or by reason of any other
cause beyond Sublandlord’s reasonable control, including governmental
restrictions on the use of materials or the use of any of the Building
systems.  In each instance Sublandlord
shall exercise reasonable diligence to eliminate the cause of stoppage and
to effect restoration of the Service and shall give Subtenant reasonable
notice, when practicable, of the commencement and anticipated duration of such
stoppage, and whether any work is required to be performed in or about the
Demised Premised for such purpose. 
Subtenant shall not be entitled to any diminution or abatement of rent
or other compensation nor shall this Sublease or any of the obligations of the
Subtenant be affected or reduced by reason of the interruption, stoppage or
suspense of any of the Services.

 

C.  Subtenant
shall bear the sole cost and expense of all improvements to the Demised
Premises made by Subtenant, and Subtenant shall pay for its share of improvements
made by Sublandlord to the Premises which also benefit Subtenant, including but
not limited to, a new phone system.

 

7. 
Liability of Sublandlord; Sublandlord’s Covenants.

 

A. 
Subtenant shall look solely to Sublandlord’s estate and interest
in the Premises for the satisfaction of Subtenant’s remedies for the collection
of any judgment (or other judicial process) requiring the payment of money by
Sublandlord in the event of any default by Sublandlord under this Sublease, and
Subtenant shall not seek or claim recourse against Sublandlord (or any partner
of Sublandlord) in the event of any default by Sublandlord or for any liability
of Sublandlord, and no other property or other assets of Sublandlord (or any affiliate
of Sublandlord or any employee, officer or director of Sublandlord or any of
its affiliates) shall be subject to levy, execution or other enforcement
procedure for the satisfaction of Subtenant’s remedies under or with respect to
this Sublease, the relationship of Sublandlord and Subtenant hereunder or
Subtenant’s use and occupancy of the Demised Premises.

 

B. 
Sublandlord hereby covenants that it will perform all of its
material obligations (if any) under this Sublease and the Prime Lease (except
to the extent such performance has been delegated to Subtenant pursuant to this
Sublease) and that it will not amend or modify the Prime Lease in any manner
that materially adversely affects Subtenant’s rights hereunder without the
prior written consent of Subtenant, such consent not to be unreasonably
withheld or delayed.  Sublandlord
represents that (a) it has delivered a true, correct and complete copy of
the Prime Lease to Subtenant and there are no other agreements between
Sublandlord and Prime Landlord with respect to the Demised Premises, and (b) it
has not previously assigned the Prime Lease or sublet the Demised Premises.

 

8

 

8. 
Indemnification.

 

A. 
Subtenant, to the fullest extent permitted by law, shall defend,
indemnify and save harmless Sublandlord, its affiliates, and the agents,
officers, directors and employees of Sublandlord and its affiliates against and
from all liabilities, obligations, damages, penalties, suits, actions, demands,
fines, losses, claims, costs, charges and expenses, including, without
limitation, architects and attorneys fees and disbursements (collectively, “Claims”),
which may be imposed upon or incurred by or asserted against Sublandlord and/or
its agents by reason of (i) any work or thing done in, on or about the
Demised Premises, any improvements located thereon, or any part thereof by or
at the instance, of Subtenant, its agents, contractors, subcontractors,
servants, employees, licensees or invitees, (ii) any accident or injury to
any person (including death resulting therefrom), or damage to property
occurring in, on or about the Demised Premises, any improvements located
thereon, or any part thereof, or vault, passageway or space adjacent thereto, (iii) any
failure on the part of Subtenant to perform or comply with any of the
covenants, agreements, terms, provisions, conditions or limitations contained
in this Sublease on its part to be performed or complied with, (iv) any
failure of, or delay by, Subtenant in surrendering the Demised Premises, any
improvements located thereon, in accordance with the provisions of this
Sublease, including, without limitation, any claims made by Prime Landlord or
any succeeding tenant, arising out of, or in connection with, such failure or
delay, (v) any act or omission of Subtenant, its agents, officers,
directors, contractors, servants, employees, invitees or licensees, or conduct
of Subtenant’s business in, or use, occupancy and management of, the Demised
Premises or any improvements located thereon, provided that nothing contained
herein shall require Subtenant to indemnify or hold Sublandlord harmless for
any Claims arising from the bad faith or willful misconduct of Sublandlord or
its employees, agents, contractors and licensees.  In addition, whenever Subtenant is required to
indemnify Sublandlord against, and hold Sublandlord harmless from any and all
loss, cost, damage, penalty, liability, suit, action, demand, fine, charge or
expense of whatsoever nature pursuant to any provision of the Prime Lease,
Subtenant shall also so indemnify and hold Prime Landlord harmless from any and
all such loss, cost, damage, penalty, liability, suit, action, demand, fine,
charge or expense of whatsoever nature.

 

B. 
In the event that Subtenant shall be obligated under the terms of
this Sublease to indemnify Sublandlord, Subtenant may select legal counsel
(subject to the consent of Sublandlord, which consent shall not be unreasonably
withheld) and shall keep Sublandlord fully apprised at all times of the status
of such defense.

 

C. 
The provisions of this Paragraph 8 shall survive the Expiration
Date or earlier termination of this Sublease.

 

9. 
Assignment, Subletting and Mortgaging.  Notwithstanding anything to the contrary in
this Sublease or in the Prime Lease, Subtenant shall not assign, sell,
transfer, whether by operation of law or otherwise, or pledge, mortgage or
otherwise encumber this Sublease, or sublet or permit the use or occupancy of
all or any part of the Demised Premises or any improvements located thereon, provided
that, subject to giving notice thereof to Sublandlord, Subtenant may
assign this Sublease to, or permit the use or occupancy of the Demised Premises
by, any entity which qualifies as a Related Entity 

 

9

 

under the Prime Lease. 
If this Sublease be assigned, or if the Premises or any part thereof be
sublet, Sublandlord may collect rent from the assignee or subtenant and apply
the net amount collected to the Fixed Rent and Additional Rent herein reserved,
but no such assignment or subletting shall be or be deemed to be a waiver of
this covenant, or the acceptance of the assignee or subtenant as a tenant, or a
release of Subtenant from the further performance by Subtenant of the covenants
on the part of Subtenant herein contained.

 

10.  Time Limits.  The parties hereto agree that the time limits
set forth in the Prime Lease for the notice or grace period afforded to
Sublandlord, or the making of demands, performance of any act, condition or
covenant, or the exercise of any right, remedy or option by Sublandlord shall
be modified for the purposes of this Sublease, by shortening the same in each
instance to (i) one half of the fixed time limit set forth in the Prime
Lease, if the time period is five (5) days or less, and (ii) the
fixed time limit set forth in the Prime Lease less five (5) days in all
other cases, but nothing herein contained shall be construed to afford
Subtenant less than two (2) business days in which to respond under the
appropriate provisions of the Prime Lease or hereunder.  Subtenant shall, not later than five (5) days
after receipt thereof, give to Sublandlord a copy of any notice, demand or
other communication received from Prime Landlord relating to the Demised
Premises.

 

11.  Notices.  For the purposes of Section 31.01 of the
Prime Lease, as incorporated herein, Notices to Sublandlord shall be directed
to Sublandlord and Subtenant at the addresses hereinabove set forth.

 

12.  Termination of Prime Lease.  If for any reason the term of the Prime Lease
is terminated prior to the Expiration Date of this Sublease, this Sublease
shall thereupon terminate, and, unless such termination was caused solely by
Sublandlord’s default under the Prime Lease (excluding defaults in the
performance or observance of any obligations delegated to Subtenant pursuant to
this Sublease) or a voluntary termination (other than a voluntary termination
following a casualty or condemnation as permitted in the Prime Lease and
referred to below), Sublandlord shall not be liable to Subtenant by reason
thereof.  In the event of such
termination, Sublandlord shall return to Subtenant that portion of the Rental
paid in advance by Subtenant, if any, prorated as of the date of such
termination.  Sublandlord reserves the
right to transfer and assign its interest in and to this Sublease, provided
that in the event of any such assignment or transfer otherwise than pursuant to
Sublandlord’s rights in the sixth sentence of Section 8.03 of the Prime
Lease, Subtenant shall have the right to terminate this Sublease upon not less
than ten (10) business days’ notice to Sublandlord.

 

13.  Damage, Destruction, Fire and Other
Casualty; Condemnation. 
Notwithstanding any contrary provision of this Sublease or of the
provisions of the Prime Lease herein incorporated by reference, Subtenant shall
have no right to terminate this Sublease by reason of a casualty or
condemnation affecting the Demised Premises. 
Furthermore, Subtenant shall have no right to an abatement of Fixed Rent,
Additional Rent or any other Rental by reason of a casualty or condemnation
affecting the Demised 

 

10

 

Premises unless Sublandlord is entitled to a
corresponding abatement with respect to the Demised Premises under the Prime
Lease.  If by reason of such casualty or
condemnation, Prime Landlord or Sublandlord elects to terminate the Prime Lease
in accordance with the provisions of the Prime Lease, then upon such
termination of the Prime Lease this Sublease shall be automatically terminated
as if such date were the Expiration Date and Sublandlord shall have no
liability whatsoever to Subtenant by virtue of such termination.

 

14.  End of Term.  Subtenant acknowledges that possession of the
Demised Premises and any improvements thereon must be surrendered to
Sublandlord, on the Expiration Date or sooner termination of the Term.

 

15.  Guarantee.  As a condition to Sublandlord and Subtenant
entering into this Sublease, Ronald S. Lauder shall provide to Sublandlord a
personal guarantee, in the form annexed hereto as Exhibit B (the “Gurantee”),
guaranteeing the full and complete payment and performance of all of the
obligations of Subtenant under this Sublease; provided however that the maximum
amount to be paid by Ronald S. Lauder under the Guarantee shall not exceed an
amount equal to the then aggregate amount of one (1) year’s Rental,
including, but not limited to, such amounts of Fixed Rent, Additional Rent,
electricity costs, real estate taxes, operating expenses and Subtenant’s share
of improvements provided by Sublandlord.

 

16.  Costs.  Subtenant hereby agrees to reimburse
Sublandlord for all costs incurred by Sublandlord in connection with the
preparation of the Sublease (including reasonable attorneys’ fees).

 

17.  Miscellaneous.

 

A.  The terms of
this Sublease may not be changed or otherwise modified except by an instrument
in writing signed by each of the parties hereto and by the Prime Landlord
insofar as may be required under the Prime Lease.

 

B.  All
understandings and agreements heretofore had between the parties hereto with
respect to the subject matter of this Sublease are merged in this Sublease,
which alone fully and completely expresses their agreement, and that the same
is entered into after full investigation, neither party relying upon any
statement, representation or warranty made by the other not embodied in this
Sublease.

 

C.  In the event
that any provisions of this Sublease shall be held to be invalid or
unenforceable in any respect, the validity, legality or enforceability of the remaining
provisions of the Sublease shall be unaffected thereby.

 

D.  The
paragraph headings appearing herein are for purposes of convenience only and
are not deemed to be a part of this Sublease.

 

11

 

E.  Subtenant
shall have the right to use such portion of the directory listings granted to
Sublandlord under the Prime Lease as Subtenant uses at the date hereof.

 

F.  This
Sublease shall be governed by and construed in accordance with the laws of the
State of New York.

 

G.  In the event
that Ronald S. Lauder is no longer employed by the The Estée Lauder Companies
Inc. or its subsidiaries, Sublandlord shall have the right to terminate this
Sublease upon notice to Subtenant, and Subtenant agrees to vacate the Demised
Premises within twelve (12) months of the date of such request.

 

H. 
Notwithstanding anything to the contrary in this Sublease or in the
Prime Lease, Sublandlord and Subtenant agree that in the event that Sublandlord
shall vacate the 42nd floor of the Premises for any reason, voluntarily or
involuntarily, or if the Prime Lease shall terminate or Sublandlord’s right of
occupancy under the Prime Lease is terminated, in either case where voluntary
or involuntary, then this Sublease shall terminate, the Subtenant shall vacate
the Demised Premises and Sublandlord shall have no liability to Subtenant.

 

I.   This
Sublease may be executed in counterparts each of which when taken together
shall be deemed to be one and the same instrument.

 

[NO FURTHER TEXT ON THIS
PAGE.]

 

12

 

IN WITNESS WHEREOF, the
parties hereto have duly executed this Sublease as of the day and year first
above written.

 

 

	
   

  	
  ARAMIS INC., Sublandlord

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Richard W. Kunes

  
	
   

  	
   

  	
  Name:

  	
  Richard W. Kunes

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice
  President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RSL MANAGEMENT CORP., Subtenant

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Jacob Z. Schuster

  
	
   

  	
   

  	
  Name:

  	
  Jacob Z. Schuster

  
	
   

  	
   

  	
  Title:

  	
  President

  

 

 

Exhibit A

 

Plan of Demised
Premises

 

 

Exhibit B

 

Form of
Guarantee

 

 

 

GUARANTEE OF
SUBLEASE

 

Guarantee
(“Guarantee”), dated as of April 1, 2005 by RONALD S. LAUDER (“Guarantor”),
having an office at 767 Fifth Avenue, New York, New York 10153, in favor of ARAMIS,
INC., a Delaware corporation (“Sublandlord”) having an office at 767
Fifth Avenue, New York, New York 10153.

 

R E
C I T A L S:

 

1.             Sublandlord,
as sublandlord, and RSL Management Corp. (“Subtenant”), a Delaware
corporation, as subtenant, have entered into a sublease agreement (the “Sublease”),
dated as of April 1, 2005, for a portion of the 42nd Floor of 767 Fifth
Avenue, New York, New York 10153 (“Premises”).  Capitalized terms used but not defined herein
shall have the meanings ascribed to them in the Sublease.

 

2.             Sublandlord
has required and Guarantor has agreed that as a condition to execution of the
Sublease by Sublandlord, Guarantor shall execute this Guarantee.

 

A G
R E E M E N T:

 

In
consideration of, and as an inducement to, Sublandlord executing and delivering
the Sublease and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Guarantor agrees as follows:

 

1.             Guarantor
absolutely, unconditionally and irrevocably guarantees to Sublandlord the full
and complete payment and performance of all of the obligations of Subtenant
under the Sublease, provided however that the maximum amount (the “Maximum
Amount”) to be paid by Guarantor under this Guarantee shall not exceed an
amount equal to the then aggregate amount of one (1) year’s Rental,
including, but not limited to, such amounts of Fixed Rent, Additional Rent,
electricity costs, real estate taxes, operating expenses and Subtenant’s share
of improvements provided by Sublandlord, as are then in effect (the “Guarantee
Obligations”).

 

2.             Guarantor
acknowledges and agrees that its liability hereunder shall be primary and that
in any right of action which shall accrue to Sublandlord under the Sublease, Sublandlord
may, at its option, proceed against Guarantor and Subtenant, jointly and
severally, or against Guarantor under this Guarantee without commencing any
suit or proceeding of any kind or nature whatsoever against Subtenant or
obtaining any judgment against Subtenant and without proceeding under any other
guarantee of the Sublease or applying any other security for the Guarantee
Obligations.  Guarantor hereby (a) waives
diligence, presentment, demand of payment, notice of non-payment, notice of
dishonor, protest, non-performance or non-observance, notice of acceptance of
this 

 

 

Guarantee,
filing of claims with a court in the event of the merger or bankruptcy of Subtenant,
any right to require a proceeding first against Subtenant or to realize on any
collateral, protest, notice and all demands whatsoever, with respect to the
Guarantee Obligations, (b) agrees that this Guarantee constitutes a guarantee
of payment and not of collection and Guarantor’s obligations are not in any way
conditional or contingent upon any attempt to collect from or enforce against Subtenant
or upon any other condition or contingency, (c) acknowledge that Sublandlord’s
and, subject to any required consent of Sublandlord, Subtenant’s interest in
the Sublease may be transferred in whole or in part without affecting the
validity or enforceability of this Guarantee and that the benefit of Guarantor’s
obligations hereunder shall extend to each successor and assign of Sublandlord
automatically and without notice to Guarantor and (d) covenants that this
Guarantee will not be discharged except by complete performance of the
obligations contained in the Sublease and this Guarantee.

 

3.             This
Guarantee shall be a continuing, absolute, unconditional guarantee with full
recourse to Guarantor and not subject to any reduction, limitation, impairment,
termination, defense, set-off, counterclaim or recoupment whatsoever; provided
however that this Guarantee shall terminate with no further obligation or
liability to Guarantor upon payment by Guarantor of the Maximum Amount. The
validity of this Guarantee and the obligations and liability of Guarantor
hereunder shall not be terminated, affected, modified, diminished or impaired
by reason of (a) the assertion of or the failure by Sublandlord to assert
against Subtenant any of the rights or remedies reserved to Sublandlord
pursuant to the Sublease, (b) any bankruptcy, insolvency, reorganization,
dissolution, arrangement, assignment for the benefit of creditors, receivership
or trusteeship affecting Subtenant or its successors or assigns under the
Sublease or of any other guarantor of the Sublease or any surety, whether or
not notice thereof is given to Guarantor, (c) any subletting of all or a
portion of the Premises or any assignment or other transfer by Subtenant of its
interest in the Sublease, either in whole or in part whether permitted or not, (d) the
genuineness, validity, regularity or enforceability of the Sublease or the
Prime Lease (as defined in the sublease agreement), (e) any rescission,
compromise, alteration, amendment, restatement, modification, extension,
expiration, termination, renewal, release, change, waiver, consent or other
action in respect of any of the terms, provisions, covenants or conditions
contained in the Sublease or Prime Lease or any agreement, instrument or
document securing the Sublease or Prime Lease, with or without notice to or assent
from Guarantor, (f) the absence of notice or the absence of or any delay
in action to enforce any obligation or to exercise any right or remedy against Subtenant,
or Guarantor, or any other guarantor or surety, whether under the Sublease or
any agreement, instrument or document securing the Sublease, or under any other
agreement, instrument or document, or any indulgence, extension or waiver
granted to or compromise with Subtenant or any other guarantor or surety, (g) any
assumption by any person of any obligation under the Sublease or any agreement,
instrument or document securing the Sublease, (h) any event of force
majeure, (i) any release or substitution of any security or collateral for
the Guarantee Obligations, in whole or in part, with or without notice to or
assent from Subtenant or Guarantor, (j) any extension of time, consent,
indulgence, waiver or other action, inaction or omission under or concerning
the Sublease, (k) any dealings or transactions or matter or thing
occurring between Sublandlord and Subtenant, or (l) any other circumstance
or 

 

2

 

condition
that may grant or result in a discharge, limitation or reduction of liability
of a surety or guarantor.

 

4.             No
delay on the part of Sublandlord in exercising any right, power or privilege
under this Guarantee nor any failure to exercise the same shall operate as a
waiver of or otherwise affect any right, power or privilege, nor shall any
single or partial exercise thereof preclude any other or further exercise
thereof or the exercise of any other right, power or privilege.

 

5.             Guarantor
shall at any time and from time to time, within five (5) days following
request by Sublandlord, execute, acknowledge and deliver to Sublandlord a
statement certifying that this Guarantee is unmodified and in full force and
effect (or if there have been modifications, that the same is in full force and
effect as modified and stating such modifications).

 

6.             As
a further inducement to Sublandlord to execute and deliver the Sublease and in
consideration thereof, Guarantor covenants and agrees that in any action or
proceeding brought on, under or by virtue of this Guarantee, Guarantor shall
and hereby does waive trial by jury.

 

7.             Guarantor
represents and warrants to Sublandlord that Guarantor has received a true and
complete copy of the Sublease and the Prime Lease.

 

8.             If,
by reason of (i) the operation of any bankruptcy, insolvency,
reorganization, arrangement, assignment for the benefit of creditors,
receivership, trusteeship or other law for the relief of debtors, now or
hereafter enacted, or (ii) any judgment, decree or order of any court or
administrative body having jurisdiction over Subtenant or Guarantor or any of
their property, pursuant to or in connection with any such laws, any payment or
performance or property received by Sublandlord on account of any obligation
under the Sublease or this Guarantee is required to be transferred, refunded or
paid over to any party other than Sublandlord, or if Sublandlord should settle
any claim with respect thereto, then, in such event, Guarantor agrees to pay to
Sublandlord the amount so required (or agreed in settlement) to be refunded,
transferred, or paid over by Sublandlord and the obligations of Guarantor under
this Guarantee shall not be treated as having been discharged by reason of the
payment or performance so refunded, transferred or paid over and Guarantor
shall also be and remain liable to Sublandlord hereunder for any amounts unpaid
on account of the obligations guaranteed hereby.  Sublandlord shall not be required to litigate
or otherwise dispute its obligation to make such refund, transfer or payment
if, in good faith and on the advice of counsel, it believes that such
obligation exists.

 

9.             No
waiver or modification of any provision of this Guarantee nor any termination
of this Guarantee shall be effective unless in writing and signed by the party
against which the waiver, modification or termination is sought to be enforced,
nor shall any waiver be applicable except in the specific instance for which it
is given.

 

3

 

10.           The
validity and enforcement of this Guarantee shall be governed by and construed
in accordance with the internal laws of the State of New York without regard to
principles of conflicts of law.

 

11.           All
notices and other communications (collectively, “Notices”) desired or
required to be given under this Guarantee shall be in writing and given or made
by personal delivery or by prepaid certified or registered mail, return receipt
requested, addressed, in the case of Sublandlord, to the address set forth on
the first page of this Guarantee, to the attention of General Counsel,
and, in the case of Guarantor, to the address set forth on the first page of
this Guarantee.  All Notices shall be
deemed given or served on the day delivered or deposited in the United States
mail.

 

12.           Any
indebtedness or obligation of Subtenant to Guarantor is hereby expressly
subordinated as to priority of lien, time of payment and in all other respects
to all sums at any time owing to Sublandlord under the Guarantee and Guarantor
shall not be entitled to enforce or receive payment on account of such other
indebtedness until all sums owing to Sublandlord have been paid.  Any sums so received by Guarantor shall be
held in trust for and paid over to Sublandlord.

 

13.           This
Guarantee shall be binding upon and inure to the benefit of Guarantor and Sublandlord
and their respective heirs, successors and permitted assigns.  Each right and remedy of Sublandlord provided
for under this Guarantee or under law or in equity shall be separate and
cumulative and it is agreed that the exercise by Sublandlord of any one or more
of such rights and remedies shall not be deemed to be in exclusion of any other
remedy available to Sublandlord and shall not limit or prejudice any other
legal or equitable remedy which Sublandlord may have.

 

14.           If
any provision of this Guarantee or the application thereof to any person or
circumstance shall to any extent be held void, unenforceable or invalid, the
remainder of this Guarantee or the application of such provision to persons or
circumstances other than those as to which it is held void, unenforceable or
invalid, shall not be affected thereby and each provision of this Guarantee
shall be valid and enforceable to the fullest extent permitted by law.

 

[The
Remainder Of The Page Is Intentionally Left Blank]

 

4

 

IN
WITNESS WHEREOF, Guarantor has caused this Guarantee to be duly executed as of
the day and year first above written.

 

 

	
   

  	
  RONALD S. LAUDER, Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/Ronald S. Lauder

  
	
   

  	
   

  	
  Name: Ronald S. Lauder

  

 

5Exhibit 10.5

 

FIRST AMENDMENT
TO SUBLEASE

 

THIS FIRST AMENDMENT TO SUBLEASE (this “Amendment”) made as of the
28th day
of February, 2007, by and between ARAMIS INC., a
Delaware corporation, and a wholly-owned subsidiary of THE ESTÉE LAUDER
COMPANIES INC., having an address at 767 Fifth Avenue, New York, New York 10153
(“Sublandlord”), and RSL MANAGEMENT CORP.,
a Delaware corporation, having an address at 767 Fifth Avenue, New York, New
York 10153 (“Subtenant”).

 

W I T N E S S E T H

 

WHEREAS, by that certain Lease dated as of July 10,
2003, between 767 Fifth Avenue, LLC (“Landlord”), as landlord, and
Sublandlord, as tenant, as amended pursuant to (i) that certain First
Amendment to Lease dated as of April 1, 2004, between Landlord and
Sublandlord, (ii) that certain Second Amendment to Lease dated as of December 28,
2004, between Landlord and Sublandlord, and (iii) that certain Third
Amendment to Lease dated as of January 5, 2007, between Landlord and
Sublandlord (as amended, the “Prime Lease”), Prime Landlord leased to
Sublandlord certain premises (the “Premises”), more particularly
described in the Prime Lease, located on the 37th through 43rd floors, the 45th
and 46th floors, the 6th floor, and concourse and basement levels of the
building situated in the Borough of Manhattan, City, County and State of New
York and known by the street address 767 Fifth Avenue, New York, New York 10153
(the “Building”), for a term expiring at noon on March 31, 2020.

 

WHEREAS, Subtenant is subleasing from
Sublandlord a portion of the Premises (the “Demised Premises”) pursuant
to that certain Agreement of Sublease dated as of April 1, 2005, between
Sublandlord and Subtenant (the “Existing Sublease”) for a term expiring
at 11:59 pm on March 31, 2010.

 

WHEREAS, Subtenant has surrendered to
Sublandlord a portion of the Demised Premises consisting of 613 usable square
feet and indicated by cross-hatching on Exhibit A attached hereto
and made a part hereof (the “Surrendered Space”) and Sublandlord has
accepted such surrender from Subtenant upon the terms and conditions set forth
in this Amendment.

 

WHEREAS, Sublandlord and Subtenant desire to
modify and amend the Existing Sublease as hereinafter provided.  The Existing Sublease, as the same is amended
by this Amendment, is hereinafter referred to as the “Sublease”.

 

NOW,
THEREFORE, for
and in consideration of the mutual covenants herein contained and other good
and valuable consideration, the adequacy and receipt of which are hereby
acknowledged, Sublandlord and Subtenant hereby agree as follows:

 

1.             Definitions. 
All capitalized terms used herein shall have the meanings ascribed to
them in the Sublease unless otherwise specifically set forth herein to the
contrary.

 

 

2.             Surrender.  Effective as
of November 30, 2006 (the “Surrender Date”), Subtenant’s tenancy
and right to occupy the Surrendered Space did terminate and come to an
end.  Subtenant vacated and surrendered
to Sublandlord the entire Surrendered Space free of all tenancies and
occupancies, as if the Surrender Date were the date originally fixed for the
expiration of the term of the Sublease with respect to the Surrendered Space
and otherwise fully complied with the provisions of the Sublease with respect
to the surrender of the Surrendered Space. 
Effective as of the Surrender Date, the Sublease was amended such that: (i) Fixed
Rent was reduced to $598,759.92 per annum; (ii) Subtenant’s Proportionate
Share was reduced to 18.15%; and (iii) the Additional Rent with respect to
Services supplied solely to Suite 4200 of the Building (comprising the
Demised Premises and additional office space of 2,537 usable square feet) was reduced
to 63.02%.  It is the intent of the
parties that from and after the Surrender Date, the Demised Premises shall not
include the Surrendered Space.

 

3.             Representation Regarding Sublease. 
Each of Sublandlord and Subtenant represent and warrant to the other
that the Sublease is in full force and effect and represents the entire
agreement between Sublandlord and Subtenant with respect to the Demised Premises
and there are no other amendments, modifications or supplements thereto, or any
other understandings, contracts, agreements or commitments of any kind
whatsoever, whether oral or written.

 

4.             Broker Representation. 
Each party hereto covenants, warrants and represents to the other party
that it has had no dealings, conversations or negotiations with any broker
concerning the execution and delivery of this Amendment.  Each party hereto agrees to defend, indemnify
and hold harmless the other party against and from any claims for any brokerage
commissions and all costs, expenses and liabilities in connection therewith,
including, without limitation, reasonable attorneys’ fees and disbursements,
arising out of its respective representations and warranties contained in this
Paragraph 4 being untrue.

 

5.             No Implied Amendment. 
Except as expressly set forth in this Amendment, the terms and
conditions of the Sublease shall continue in full force and effect without any
change or modification and shall apply for the balance of the term of the Sublease.  In the event of a conflict between the terms
of the Sublease and the terms of this Amendment, the terms of this Amendment
shall govern.

 

6.             Amendment.  This Amendment shall not be altered, amended, changed,
waived, terminated or otherwise modified in any respect or particular, and no
consent or approval required pursuant to this Amendment shall be effective,
unless the same shall be in writing and signed by or on behalf of the party to
be charged.

 

7.             Successors and Assigns.  This
Amendment shall be binding upon and shall inure to the benefit of the parties
hereto and to their respective heirs, executors, administrators, successors and
permitted assigns.

 

8.             Merger.  All prior
statements, understandings, representations and agreements between the parties,
oral or written, are superseded by and merged in the 

 

2

 

Sublease
as amended by this Amendment, which alone fully and completely expresses the
agreement between them in connection with this transaction and which is entered
into after full investigation, neither party relying upon any statement,
understanding, representation or agreement made by the other not embodied in
the Sublease as amended by this Amendment.

 

9.             Governing Law. 
This Amendment shall be interpreted and enforced in accordance with the
laws of the state of New York.

 

10.           Severability. 
If any provision of this Amendment shall be unenforceable or invalid,
the same shall not affect the remaining provisions of this Amendment and to
this end the provisions of this Amendment are intended to be and shall be
severable.

 

11.           Counterparts. 
This Amendment may be executed in any number of counterparts, each of
which shall be deemed an original and all of which, taken together, shall
constitute one and the same instrument.

 

12.           Authority.  Subtenant and
Sublandlord, and each of the persons executing this Amendment on behalf of Subtenant
and Sublandlord, do hereby warrant that the party for which they are executing
this Amendment has full right and authority to enter into this Amendment, and
that any person signing on behalf of such party is authorized to do so.

 

13.           No Offer.  This
Amendment shall not be binding upon either party unless and until it is fully
executed and delivered to both parties.

 

14.           Captions.  The captions
preceding all of the paragraphs of this Amendment are intended only for
convenience of reference and in no way define, limit or describe the scope of
this Amendment or the intent of any provision hereof.

 

IN WITNESS WHEREOF, Sublandlord and Subtenant have
executed this Amendment as of the date and year first above written.

 

	
  SUBLANDLORD:

  ARAMIS INC.

  	
   

  	
  SUBTENANT:

  RSL MANAGEMENT CORP. 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/George H. Martini 

  	
   

  	
  By: 

  	
  /s/Jacob Z. Schuster 

  
	
  Name: 

  	
  George H. Martini 

  	
   

  	
  Name: 

  	
  Jacob Z. Schuster 

  
	
  Title: 

  	
  Vice President, Deputy
  General Counsel and Assistant 

  	
   

  	
  Title: 

  	
  President

  
	
   

  	
  Secretary

  	
   

  	
   

  	
   

  

 

3

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