Delaware
|
000-50587
|
13-4005439
|
|
(State or other Jurisdiction of
|
(Commission File Number)
|
(I.R.S. Employer
|
|
Incorporation or Organization)
|
Identification Number)
|
||
100 South Bedford Road, Suite 2R, Mount Kisco, NY
|
10549
|
||
(Address of principal executive offices)
|
(Zip code)
|
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
|
Page
|
|
Item 2.01.
|
Completion of Acquisition or Disposition of Assets
|
3
|
Item 5.02
|
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. | 4 |
Item 5.06
|
Change in Shell Company Status
|
4
|
Description of Business
|
4
|
|
Risk Factors
|
10
|
|
Financial Information
|
18
|
|
Properties
|
25
|
|
Security Ownership of Certain Beneficial Owners and Management
|
25
|
|
Directors and Executive Officers
|
27
|
|
Executive Compensation
|
28
|
|
Certain relationships and Related Transactions and Director Independence
|
36
|
|
Legal Proceedings
|
38
|
|
Market Price of and Dividends on the Registrant’s Common Equity and Related Stockholder Matters
|
39
|
|
Recent Sales of Unregistered Securities
|
40
|
|
Description of Registrant’s Securities to be Registered
|
||
Indemnification of Directors and Officers | ||
Item 8.01.
|
Other Events |
40
|
Item 9.01.
|
Financial Statements and Exhibits
|
40
|
|
|
|
SIGNATURES
|
44 |
Name and Address
of Beneficial Owner
|
Amount and Nature of Beneficial
Ownership
|
Percent of Class
|
Bedford Oak Advisors, LLC
100 South Bedford Road
Mt. Kisco, NY 10549
|
5,210,434 (1)
|
28.21%
|
GAMCO Investors, Inc.
One Corporate Center
Rye, NY 10580
|
2,405,028 (2)
|
13.02%
|
Frost Gamma Investments Trust
4400 Biscayne Blvd.
Miami, FL 33137
|
1,603,400 (3)
|
8.68%
|
Boulderado Group, LLC
101 Federal Street
Suite 1900
Boston, MA 02110
|
1,134,777 (4)
|
6.14%
|
(1)
|
Based on a Schedule 13D/A filed jointly by Bedford Oak Advisors, LLC (“Bedford Oak”), Bedford Oak Capital, L.P. (“Capital”), Bedford Oak Acorn, L.P. (“Acorn”) and Mr. Eisen with the SEC on December 20, 2012. Mr. Eisen is deemed to have beneficial ownership of such shares by virtue of his position as managing member of Bedford Oak, the investment manager of Capital and Acorn and certain other private investment partnerships. See “Security Ownership of Directors and Executive Officers” table below.
|
(2)
|
Based on a Schedule 13D/A filed jointly by Gabelli Funds, LLC, GGCP, Inc., GAMCO Investors, Inc., GAMCO Asset Management, Inc., MJG Associates, Inc., Teton Advisors and Mario J. Gabelli with the SEC on January 26, 2011.
|
(3)
|
Based on a Schedule 13G filed by Frost Gamma Investments Trust with the SEC on February 10, 2011.
|
(4)
|
Based on a Schedule 13G filed jointly by Boulderado Group, LLC, Boulderado Partners, LLC and Alex B. Rozak with the SEC on January 6, 2012.
|
Name
|
Amount and Nature of Beneficial
Ownership
|
Percent of Class
|
|
Harvey P. Eisen
|
7,877,100
|
(1)
|
37.27%
|
Peter M. Donovan
|
852,228
|
(2)
|
4.61%
|
Scott N. Greenberg
|
192,202
|
(3) (4)
|
1.03%
|
Lawrence G. Schafran
|
210,758
|
(4)
|
1.13%
|
Ira J. Sobotko
|
100,625
|
(5)
|
*
|
Thomas J. Hayes
|
16,667
|
(6)
|
*
|
Directors and executive officers as a group
(6 persons) (7)
|
9,249,580
|
42.85%
|
(1)
|
Mr. Eisen is deemed to have beneficial ownership of such shares by virtue of his position as managing member of Bedford Oak, the investment manager of Capital and Acorn. See footnote 1 to Principal Stockholder’s table above. Also includes 2,666,666 shares of Company common stock issuable upon the exercise of options that are exercisable by Mr. Eisen within 60 days of December 20,, 2012.
|
(2)
|
Includes 852,228 shares of Company Common Stock held by Mr. Donovan and his family, which are restricted for sale for 3 years from the Effective Time of the Merger and does not include 110,771 RSU’s which vest at the Closing of the Merger, but are restricted for sale for 3 years from the Closing.
|
(3)
|
Includes 4,000 shares of Company Common Stock held by members of Mr. Greenberg’s family, and 5,867 shares of Company Common Stock allocated to Mr. Greenberg’s account pursuant to the provisions of the GP Strategies Retirement Savings Plan. Mr. Greenberg disclaims beneficial ownership of the 4,000 shares of Company Common Stock held by members of his family.
|
(4)
|
Includes 166,666 shares of Company Common Stock issuable to each of Messrs. Greenberg, and Schafran upon the exercise of options, all of which are exercisable by Messrs. Greenberg and Schafran within 60 days of December 20, 2012.
|
(5)
|
Includes 625 shares of Company Common Stock owned by Mr. Sobotko individually, and 100,000 shares of Company Common Stock issuable to Mr. Sobotko upon the exercise of options, all of which are currently exercisable.
|
(6)
|
Includes 16,667 shares of Company Common Stock issuable to Mr. Hayes upon the exercise of options, all of which are exercisable by Mr. Hayes within 60 days of December 20, 2012.
|
(7)
|
Includes Messrs. Greenberg and Schafran, each of whom is currently a director of the Company, Mr. Eisen and Mr. Donovan, who are currently directors and named executive officers of the Company, and Mr. Sobotko and Mr. Hayes who are currently named executive officers of the Company.
|
Name and Principal
Position
|
Year
|
Salary
|
Bonus
|
Option
Awards
(1)
|
All Other
Compensation
(2)
|
Total
|
|
($)
|
($)
|
($)
|
($)
|
($)
|
|||
Harvey P. Eisen, Chairman
of the Board and Chief
Executive Officer
(Principal Executive
|
2011
|
150,000
|
0
|
0
|
150,000
|
||
Officer)
|
2010
|
149,038
|
500,000
|
133,250
|
0
|
782,288
|
|
Ira J. Sobotko, Vice
President, Chief Financial
Officer, Treasurer and
Secretary (Principal
Financial and Accounting
|
2011
|
200,000
|
0
|
0
|
16,306
|
216,306
|
|
Officer) (2)
|
2010
|
200,000
|
0
|
0
|
15,558
|
215,558
|
|
Peter M. Donovan, Chief
Executive Officer of
|
2011
|
230,953
|
0
|
0
|
17,793
|
248,746
|
|
Winthrop (3)
|
2010
|
250,953
|
0
|
0
|
17,071
|
268,024
|
(1)
|
The amounts in this column reflect the dollar amount recognized as expense for financial statement reporting purposes, calculated in accordance with FASB ASC Topic 718. A discussion of the assumptions used in calculating these values with respect to awards related to Company Common Stock may be found in Note 10 to our audited financial statements in the Form 10-K for the fiscal year ended December 31, 2011.
|
(2)
|
For Mr. Sobotko, the amount reflected under “All Other Compensation” is comprised of:
|
|
·
|
$879 and $573 for 2011 and 2010, respectively, for life insurance premiums;
|
|
·
|
$5,827 and $5,385 for 2011 and 2010, respectively, for 401(K) Company matching contributions; and
|
|
·
|
$9,600 for 2011 and 2010 for auto expense allowance.
|
|
·
|
$2,929 and $2,953 for 2011 and 2010, respectively, for life insurance premiums;
|
|
·
|
$14,864 and $14,118 for 2011 and 2010, respectively for personal auto usage.
|
Name
|
Number of
Shares of
Common
Stock
Underlying
Unexercised
Options which
are
Exercisable
|
Number of
Shares of
Common
Stock
Underlying
Unexercised
Options
which are
Unexercisable
|
Option
Exercise Price
Per Share of
Common
Stock
|
Option Expiration Date
|
(#)
|
(#)
|
($)
|
||
2,500,000(1)
|
$2.45
|
February 28, 2017
|
||
Harvey P. Eisen
|
83,333
|
166,667 (2)
|
$1.36
|
April 28, 2020
|
Ira J. Sobotko
|
100,000 (1)
|
-
|
$2.68
|
July 29, 2017
|
(1)
|
These options were fully vested at December 31, 2011.
|
(2)
|
These options vest in approximately one-third increments on each of April 28, 2011, April 28, 2012 and April 28, 2013.
|
Name
|
Fees Earned or
Paid in Cash
|
Option Awards
(2)
|
All Other
Compensation
|
Total
|
($)
|
($)
|
($)
|
($)
|
|
Lawrence G. Schafran
|
42,755 (1)
|
17,767
|
0
|
60,522
|
Scott N. Greenberg
|
32,750
|
17,767
|
0
|
50,517
|
(1)
|
Mr. Schafran elected to receive 8,148 shares of Company Common Stock in lieu of $12,505 of his annual director’s fee.
|
(2)
|
The amounts in this column reflect the dollar amount recognized in fiscal 2011 for financial statement reporting purposes, calculated in accordance with FSB ASC 718. A discussion of the assumptions used in calculating these values may be found in Note 10 to our audited financial statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2011. At December 31, 2011, each of Messrs. Greenberg and Schafran each had 133,333 vested and 66,667 unvested options.
|
|
·
|
annual director compensation to each member of the Board of Directors of (i) $25,000, paid in quarterly installments of $6,250 (except the Vice Chairman of the Board of Directors who is to receive annual director compensation of $35,000, paid in quarterly installments of $8,750) and (ii) a one-time grant of an option to purchase 100,000 shares of Company common stock. The option is to have an exercise price of fair market value on the date of grant, vest over three years, in approximately one-third increments each year commencing on the first anniversary of the date of grant and have a term of ten years;
|
|
·
|
$1,500 in cash for each meeting of the Board of Directors and for each committee meeting attended in person and $750 in cash for each Board of Directors or Board committee meeting attended by means of conference telephone connection;
|
|
·
|
annual compensation of $5,000, paid in quarterly installments of $1,250, to each member of the Audit Committee (except the Chairman of the Audit Committee who is to receive annual compensation of $10,000), plus $750 in cash for each meeting of the Audit Committee attended in person and $500 in cash for each meeting of the Audit Committee attended by telephone, except that the per meeting attendance fee is reduced to $500 for attendance at any Audit Committee meeting held on the same day as a regular or special meeting of the Board; and
|
|
·
|
annual compensation of $2,500, paid in quarterly installments of $625, to each member of the Compensation Committee and each member of the Nominating and Corporate Governance Committee (except the Chairman of each such Committee, who is to receive annual compensation of $5,000), plus $750 in cash for each meeting of the Nominating and Corporate Governance Committee attended in person and $500 in cash for each meeting of the Nominating and Corporate Governance Committee attended by telephone, except that the per attendance meeting fee is reduced to $500 for attendance at any Nominating and Corporate Governance Committee meeting held on the same day as a regular or special meeting of the Board.
|
Plan category
|
Number of securities
to be issued upon
exercise of
outstanding options,
warrants and rights
(a)
|
Weighted-average
exercise price of
outstanding options,
warrants and rights
(b)
|
Number of securities
remaining
available for future
issuance
under equity
compensation
plans (excluding
securities
reflected in column (a))
(c)
|
Equity compensation
plans approved by
security holders (1)
|
3,300,000
|
$2.29
|
7,700,000
|
Equity compensation
plans not approved by
security holders
|
―
|
―
|
―
|
Total
|
3,300,000
|
$2.29
|
7,700,000
|
(1)
|
Consists of: (i) the 2003 Stock Plan, as amended, which was originally adopted by the Board of Directors and approved by the sole stockholder of the Company on November 3, 2003 and the amendment thereto, which was approved by the Board of Directors of the Company on March 1, 2007 and by the stockholders of the Company on December 20, 2007; and (ii) the 2007 Incentive Stock Plan, which was approved by the Board of Directors on July 30, 2007 and by the stockholders of the Company on December 20, 2007.
|
|
Quarter
|
High
|
Low
|
||||
|
|
|
|
||||
2012
|
First
|
$3.02 | $1.75 | ||||
|
Second
|
$3.09 | $2.83 | ||||
|
Third
|
$3.02 | $2.60 | ||||
|
|||||||
|
|
||||||
2011
|
First
|
$1.60 | $1.41 | ||||
|
Second
|
$1.60 | $1.47 | ||||
|
Third
|
$1.65 | $1.45 | ||||
|
Fourth
|
$1.90 | $1.30 |
|
(a)
|
Financial statements of businesses acquired.
|
|
(b)
|
Pro forma financial information.
|
|
(c)
|
Shell company transactions.
|
|
(d)
|
Exhibits.
|
December 31,
|
||||||||
2011
|
2010
|
|||||||
(Restated)
|
||||||||
Assets
|
||||||||
Cash and cash equivalents
|
$ | 511,900 | $ | 707,355 | ||||
Short-term investments (Notes 3 and 7)
|
317,323 | 319,714 | ||||||
Accounts receivable (Note 4)
|
487,212 | 301,817 | ||||||
Property and equipment (Note 5)
|
77,886 | 92,352 | ||||||
Prepaid costs and other
|
259,249 | 321,590 | ||||||
Total Assets
|
$ | 1,653,570 | $ | 1,742,828 | ||||
Liabilities and Shareholders’ Equity (Deficiency)
|
||||||||
Liabilities:
|
||||||||
Accounts payable and accrued expenses
|
$ | 585,259 | $ | 602,578 | ||||
Deferred revenue
|
12,817 | 21,711 | ||||||
Accrued compensation and bonuses
|
64,663 | 16,667 | ||||||
Officer retirement bonus payable (Note 6)
|
1,191,718 | 1,075,042 | ||||||
Total liabilities
|
1,854,457 | 1,715,998 | ||||||
Commitments (Note 8)
|
||||||||
Shareholders’ equity
(deficiency)
(Notes 9 and 12)
|
( 200,887 | ) | 26,830 | |||||
Total Liabilities and Shareholders’ Equity (Deficiency)
|
$ | 1,653,570 | $ | 1,742,828 |
Year Ended December 31,
|
||||||||
2011
|
2010
|
|||||||
(Restated)
|
||||||||
Revenues:
|
||||||||
Investment management services
|
$ | 2,840,920 | $ | 2,583,254 | ||||
Other investment advisory services (Note 7)
|
2,841,992 | 2,883,379 | ||||||
Financial research and related data
|
830,159 | 203,842 | ||||||
Total revenues
|
6,513,071 | 5,670,475 | ||||||
Costs and expenses:
|
||||||||
Salaries and employee benefits
|
4,568,879 | 4,307,558 | ||||||
Other selling and administrative
|
936,161 | 943,471 | ||||||
Facilities
|
620,802 | 619,623 | ||||||
Professional and outside services
|
638,857 | 594,223 | ||||||
Total costs and expenses
|
6,764,699 | 6,464,875 | ||||||
Loss from operations
|
(251,628 | ) | (794,400 | ) | ||||
Other expense:
|
||||||||
Loss on asset disposal
|
847 | |||||||
Loss before income taxes
|
( 251,628 | ) | ( 795,247 | ) | ||||
Income tax expense (Note 10):
|
||||||||
Current
|
3,400 | 2,900 | ||||||
Net loss
|
$ | ( 255,028 | ) | $ | ( 798,147 | ) |
Treasury Stock
|
||||||||||||||||||||||||||||||||||||||||||||
Class A Common
|
Class B Common
|
Shares
|
Amount
|
|||||||||||||||||||||||||||||||||||||||||
Additional
|
||||||||||||||||||||||||||||||||||||||||||||
Paid-In
|
Retained
|
|||||||||||||||||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Earnings
|
Class A
|
Class B
|
Class A
|
Class B
|
Total
|
||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2010, as previously reported
|
57,077 | $ | 57,077 | 19,070 | $ | 19,070 | $ | 1,027,060 | $ | 1,487,458 | 11,846 | 6,695 | $ | (336,144 | ) | $ | (61,042 | ) | 2,193,479 | |||||||||||||||||||||||||
Adjustment for impairment of deferred
income taxes
|
(1,419,000 | ) | (1,419,000 | ) | ||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2010, as restated
|
57,077 | 57,077 | 19,070 | 19,070 | 1,027,060 | 68,458 | 11,846 | 6,695 | (336,144 | ) | (61,042 | ) | 774,479 | |||||||||||||||||||||||||||||||
Net loss (restated)
|
(798,147 | ) | (798,147 | ) | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense
|
54,267 | 54,267 | ||||||||||||||||||||||||||||||||||||||||||
Common shares purchased for treasury
|
71 | (3,769 | ) | (3,769 | ) | |||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2010 (restated)
|
57,077 | 57,077 | 19,070 | 19,070 | 1,081,327 | (729,689 | ) | 11,917 | 6,695 | (339,913 | ) | (61,042 | ) | 26,830 | ||||||||||||||||||||||||||||||
Net loss
|
(255,028 | ) | (255,028 | ) | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense
|
29,266 | 29,266 | ||||||||||||||||||||||||||||||||||||||||||
Common shares purchased
|
||||||||||||||||||||||||||||||||||||||||||||
for treasury
|
36 | (1,955 | ) | (1,955 | ) | |||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2011
|
57,077 | $ | 57,077 | 19,070 | $ | 19,070 | $ | 1,110,593 | $ | (984,717 | ) | 11,953 | 6,695 | $ | (341,868 | ) | $ | (61,042 | ) | $ | (200,887 | ) |
Year Ended December 31,
|
||||||||
2011
|
2010
|
|||||||
(Restated) | ||||||||
Cash flows from operating activities:
|
||||||||
Net loss
|
$ | (255,028 | ) | $ | (798,147 | ) | ||
Adjustments to reconcile net loss to net
cash used in operating activities:
|
||||||||
Depreciation and amortization
|
33,251 | 64,372 | ||||||
Stock based compensation expense
|
29,266 | 54,267 | ||||||
Gain on short-term investments
|
6,847 | (34,310 | ) | |||||
Loss on disposal of assets
|
847 | |||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(185,395 | ) | 101,321 | |||||
Prepaid costs and other
|
62,341 | (4,087 | ) | |||||
Accounts payable and accrued expenses
|
(17,319 | ) | 60,112 | |||||
Deferred revenue
|
(8,894 | ) | (11,637 | ) | ||||
Accrued compensation and bonuses
|
47,996 | 16,667 | ||||||
Officer retirement bonus payable
|
116,676 | ( 19,877 | ) | |||||
Net cash used in operating activities
|
( 170,259 | ) | ( 570,472 | ) | ||||
Cash flows from investing activities:
|
||||||||
Purchase of short-term investments
|
(4,456 | ) | (4,062 | ) | ||||
Additions to property and equipment
|
( 18,785 | ) | ( 55,017 | ) | ||||
Net cash used in investing activities
|
( 23,241 | ) | ( 59,079 | ) | ||||
Cash flows from financing activities:
|
||||||||
Purchase of treasury stock
|
( 1,955 | ) | ( 3,769 | ) | ||||
Net cash used in financing activities
|
( 1,955 | ) | ( 3,769 | ) | ||||
Net change in cash and cash equivalents
|
(195,455 | ) | (633,320 | ) | ||||
Cash and cash equivalents, beginning
|
707,355 | 1,340,675 | ||||||
Cash and cash equivalents, ending
|
$ | 511,900 | $ | 707,355 |
1.
|
Summary of significant accounting policies:
|
1.
|
Summary of significant accounting policies
(continued):
|
2.
|
Restatement:
|
3.
|
Short-term investments:
|
|
·
|
Level 1
– Unadjusted quoted prices in active markets that are accessible at the measure- ment date for identical, unrestricted assets or liabilities;
|
|
·
|
Level 2
– Quoted prices in active markets for similar assets and liabilities or quoted prices in less active, dealer or broker markets;
|
|
·
|
Level 3
– Prices or valuations that require inputs that are both significant to the fair value measurement and are unobservable.
|
2011
|
||||||||||||
Amortized
Cost
|
Unrealized
Gains
|
Estimated
Fair Value
|
||||||||||
Cash
|
$ | 58,239 | $ | 58,239 | ||||||||
Mutual funds (See Note 7)
|
124,862 | $ | 3,600 | 128,462 | ||||||||
Equity securities
|
122,502 | 7,620 | 130,122 | |||||||||
Bonds
|
500 | 500 | ||||||||||
$ | 306,103 | $ | 11,220 | $ | 317,323 |
2010
|
||||||||||||
Amortized
Cost
|
Unrealized
Gains
|
Estimated
Fair Value
|
||||||||||
Cash
|
$ | 57,732 | $ | 57,732 | ||||||||
Mutual funds (See Note 7)
|
113,700 | $ | 19,028 | 132,728 | ||||||||
Equity securities
|
109,683 | 19,071 | 128,754 | |||||||||
Bonds
|
500 | 500 | ||||||||||
$ | 281,615 | $ | 38,099 | $ | 319,714 |
4.
|
Accounts receivable:
|
5.
|
Property and equipment:
|
December 31,
|
||||||||
2011
|
2010
|
|||||||
Computer software
|
$ | 363,252 | $ | 362,044 | ||||
Computer equipment
|
213,225 | 198,762 | ||||||
Office furniture and equipment
|
461,104 | 457,990 | ||||||
Leasehold improvements
|
279,079 | 279,079 | ||||||
Publishing machinery
|
42,834 | 42,834 | ||||||
Automobiles
|
58,018 | 58,018 | ||||||
1,417,512 | 1,398,727 | |||||||
Less accumulated depreciation and amortization
|
( 1,339,626 | ) | ( 1,306,375 | ) | ||||
$ | 77,886 | $ | 92,352 |
6.
|
Retirement programs:
|
6.
|
Retirement programs
(continued):
|
Year Ending December 31: | |||||
2012
|
$ | 104,167 | |||
2013
|
150,000 | ||||
2014
|
150,000 | ||||
2015
|
57,259 | ||||
2016
|
50,000 | ||||
Thereafter
|
1,504,648 | ||||
$ | 2,016,074 |
7.
|
Related party transactions:
|
8.
|
Commitments:
|
Year Ending December 31
:
|
Lease
|
Sublease
|
||||||
2012
|
$ | 237,140 | $ | 53,142 | ||||
2013
|
212,245 | 48,708 | ||||||
$ | 449,385 | $ | 101,850 |
9.
|
Common stock and treasury stock:
|
10.
|
Income taxes:
|
2011
|
2010
|
|||||||||||||||
Current
|
Deferred
|
Current
|
Deferred
|
|||||||||||||
Tax expense (benefit) before
application of operating loss
carryforward
|
$ | 3,400 | $ | (33,000 | ) | $ | 2,900 | $ | (296,000 | ) | ||||||
Change in valuation allowance
|
33,000 | 296,000 | ||||||||||||||
$ | 3,400 | $ | - | $ | 2,900 | $ | - |
10.
|
Income taxes
(continued)
:
|
2011
|
2010
|
|||||||
Federal Statutory rate
|
(34.0 | %) | (34.0 | %) | ||||
Effect of reduced tax rate brackets
|
4.6 | - | ||||||
Valuation allowance of deferred
tax benefit
|
13.1 | 37.2 | ||||||
Other adjustments
|
16.3 | ( 3.2 | ) | |||||
State income taxes, net of
federal benefit
|
1.4 | .4 | ||||||
1.4 | % | .4 | % |
2011
|
2010
|
|||||||
Net operating loss carryforwards
|
$ | 1,061,300 | $ | 1,095,400 | ||||
Deferred compensation
|
488,600 | 440,800 | ||||||
Other temporary differences
|
198,100 | 178,800 | ||||||
Less valuation reserve
|
( 1,748,000 | ) | ( 1,715,000 | ) | ||||
Net deferred tax assets
|
$ | - | $ | - |
11.
|
Supplemental disclosures of cash flow information:
|
12.
|
Stock plans:
|
12.
|
Stock plans
(continued)
:
|
Shares
Subject
To option
|
Weighted
Average
Exercise
Price
Per Share
|
Weighted
Average
Remaining
Contractual
Life
(In Years)
|
||||||||||
Outstanding,
January 1, 2010
|
7,735 | $ | 151.59 | 6.93 | ||||||||
Forfeited
|
( 771 | ) | 151.59 | |||||||||
Outstanding,
December 31, 2010
|
6,964 | $ | 151.59 | 7.24 | ||||||||
Exercisable at
December 31, 2010
|
6,516 | $ | 151.59 | 7.24 | ||||||||
Outstanding and
exercisable at
December 31, 2011
|
6,964 | $ | 151.59 | 6.24 |
Risk free interest rate
|
4.88 | % | ||
Expected dividend yield
|
0 | % | ||
Expected volatility factor
|
15.03 | % | ||
Expected option terms, in years
|
7.0 |
12.
|
Stock plans
(continued):
|
13.
|
Subsequent event:
|
September 30,
|
||||
2012
|
||||
Assets
|
||||
Cash and cash equivalents
|
$ | 464,399 | ||
Short-term investments (Notes 2 and 6)
|
341,183 | |||
Accounts receivable (Note 3)
|
530,923 | |||
Other receivables (Note 12)
|
277,009 | |||
Property and equipment (Note 4)
|
55,765 | |||
Prepaid costs and other
|
254,673 | |||
Total Assets
|
$ | 1,923,952 | ||
Liabilities and Shareholders’ Deficiency
|
||||
Liabilities:
|
||||
Accounts payable and accrued expenses (Note 12)
|
$ | 936,846 | ||
Deferred revenue
|
17,734 | |||
Accrued compensation and bonuses
|
7,790 | |||
Officer retirement bonus payable
|
1,203,285 | |||
Total liabilities
|
2,165,655 | |||
Commitments (Note 7)
|
||||
Shareholders’
deficiency
(Notes 9 and 12)
|
( 241,703 | ) | ||
Total Liabilities and Shareholders’ Deficiency
|
$ | 1,923,952 |
Nine Months Ended
September 30,
|
||||||||
2012
|
2011
|
|||||||
Revenues:
|
||||||||
Investment management services
|
$ | 2,109,780 | $ | 2,178,591 | ||||
Other investment advisory services (Note 7)
|
2,170,834 | 2,047,879 | ||||||
Financial research and related data
|
695,377 | 414,222 | ||||||
Total revenues
|
4,975,991 | 4,640,692 | ||||||
Costs and expenses:
|
||||||||
Salaries and employee benefits
|
3,386,381 | 3,221,329 | ||||||
Other selling and administrative
|
750,267 | 695,716 | ||||||
Facilities
|
420,329 | 463,167 | ||||||
Professional and outside services (Note 12)
|
459,580 | 482,085 | ||||||
Total costs and expenses
|
5,016,557 | 4,862,297 | ||||||
Loss from operations before income taxes
|
(40,566 | ) | (221,605 | ) | ||||
Income tax expense (benefit) (Note 10):
|
||||||||
Current
|
250 | ( 658 | ) | |||||
Net loss
|
$ | ( 40,816 | ) | $ | ( 220,947 | ) |
Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||
Class A Common
|
Class B Common
|
Shares
|
Amount
|
|||||||||||||||||||||||||||||||||||||||||
Additional
|
||||||||||||||||||||||||||||||||||||||||||||
Paid-In
|
||||||||||||||||||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Deficit
|
Class A
|
Class B
|
Class A
|
Class B
|
Total
|
||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2012
|
57,077 | $ | 57,077 | 19,070 | $ | 19,070 | $ | 1,110,593 | $ | (984,717 | ) | 11,953 | 6,695 | $ | (341,868 | ) | $ | (61,042 | ) | $ | (200,887 | ) | ||||||||||||||||||||||
Net loss
|
(40,816 | ) | (40,816 | ) | ||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2012
|
57,077 | $ | 57,077 | 19,070 | $ | 19,070 | $ | 1,110,593 | $ | (1,025,533 | ) | 11,953 | 6,695 | $ | (341,868 | ) | $ | (61,042 | ) | $ | (241,703 | ) |
Nine Months Ended
September 30,
|
||||||||
2012
|
2011
|
|||||||
Cash flows from operating activities:
|
||||||||
Net loss
|
$ | (40,816 | ) | $ | (220,947 | ) | ||
Adjustments to reconcile net loss to net
cash used in operating activities:
|
||||||||
Depreciation and amortization
|
23,848 | 26,613 | ||||||
Stock based compensation expense
|
47,603 | |||||||
(Gain) loss on short-term investments
|
(23,860 | ) | 34,913 | |||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(43,711 | ) | 52,938 | |||||
Other receivables
|
(277,009 | ) | ||||||
Prepaid costs and other
|
4,576 | (38,836 | ) | |||||
Accounts payable and accrued expenses
|
351,587 | (48,719 | ) | |||||
Deferred revenue
|
4,917 | (2,179 | ) | |||||
Deferred compensation and bonuses
|
( 45,306 | ) | 38,080 | |||||
Net cash used in operating activities
|
( 45,774 | ) | ( 110,534 | ) | ||||
Cash flows from investing activities:
|
||||||||
Additions to property and equipment
|
( 1,727 | ) | ( 14,538 | ) | ||||
Net cash used in investing activities
|
( 1,727 | ) | ( 14,538 | ) | ||||
Net change in cash and cash equivalents
|
(47,501 | ) | (125,072 | ) | ||||
Cash and cash equivalents, beginning
|
511,900 | 707,355 | ||||||
Cash and cash equivalents, ending
|
$ | 464,399 | $ | 582,283 |
1.
|
Summary of significant accounting policies:
|
1.
|
Summary of significant accounting policies
(continued):
|
2.
|
Short-term investments:
|
·
|
Level 1
– Unadjusted quoted prices in active markets that are accessible at the measure- ment date for identical, unrestricted assets or liabilities;
|
2.
|
Short-term investments
(continued):
|
·
|
Level 2
– Quoted prices in active markets for similar assets and liabilities or quoted prices in less active, dealer or broker markets;
|
·
|
Level 3
– Prices or valuations that require inputs that are both significant to the fair value measurement and are unobservable.
|
September 30, 2012
|
||||||||||||
Amortized
Cost
|
Unrealized
Gains (Losses)
|
Estimated
Fair Value
|
||||||||||
Cash
|
$ | 206,170 | $ | 206,170 | ||||||||
Mutual funds (See Note 6)
|
19,858 | $ | (905 | ) | 18,953 | |||||||
Equity securities
|
100,336 | 15,224 | 115,560 | |||||||||
Bonds
|
500 | 500 | ||||||||||
$ | 326,864 | $ | 14,319 | $ | 341,183 |
3.
|
Accounts receivable:
|
4.
|
Property and equipment:
|
September 30,
|
||||
2012
|
||||
Computer software
|
$ | 363,252 | ||
Computer equipment
|
213,225 | |||
Office furniture and equipment
|
462,832 | |||
Leasehold improvements
|
279,079 | |||
Publishing machinery
|
42,834 | |||
Automobiles
|
58,018 | |||
1,419,240 | ||||
Less accumulated depreciation and amortization
|
( 1,363,475 | ) | ||
$ | 55,765 |
5.
|
Retirement programs:
|
6.
|
Related party transactions:
|
7.
|
Commitments:
|
Year Ending December 31
:
|
Lease
|
Sublease
|
||||||
2012 (remaining)
|
$ | 57,885 | $ | 13,286 | ||||
2013
|
212,245 | 48,708 | ||||||
$ | 270,130 | $ | 61,994 |
8.
|
Common stock and treasury stock:
|
9.
|
Income taxes:
|
Nine months ended September 30,
|
||||||||||||||||
2012
|
2011
|
|||||||||||||||
Current
|
Deferred
|
Current
|
Deferred
|
|||||||||||||
Tax expense (benefit) before
application of operating loss
carryforward
|
$ | 36,250 | (658 | ) | $ | (30,000 | ) | |||||||||
Benefit of loss carryforward
|
(36,000 | ) | $ | 36,000 | ||||||||||||
Change in valuation allowance
|
- | ( 36,000 | ) | - | 30,000 | |||||||||||
$ | 250 | $ | - | $ | ( 658 | ) | $ | - |
10.
|
Supplemental disclosures of cash flow information:
|
11.
|
Stock plans:
|
Shares
Subject
To option
|
Weighted
Average
Exercise
Price
Per Share
|
Weighted
Average
Remaining
Contractual
Life
(In Years)
|
||||||||||
Outstanding and exercisable at
December 31, 2011
|
6,964 | $ | 151.59 | 6.24 |
11.
|
Stock plans
(continued)
:
|
12.
|
Sale of Company:
|
NATIONAL PATENT DEVELOPMENT CORPORATION
|
||||||||||||||||
PRO FORMA CONDENSED COMBINED CONSOLIDATED BALANCE SHEET
|
||||||||||||||||
September 30, 2012
|
||||||||||||||||
(in thousands, except per share amounts)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Historical
National Patent
|
Historical
Winthrop
|
Pro Forma Adj
inc / (dec)
|
Pro Forma
Balance Sheet
|
|||||||||||||
Assets
|
||||||||||||||||
Current assets
|
||||||||||||||||
Cash and cash equivalents
|
$ | 24,832 | $ | 464 | $ | (4,852 | ) | (a) | $ | 20,444 | ||||||
Short-term investments
|
- | 341 | - | 341 | ||||||||||||
Accounts receivables
|
- | 531 |
(277
|
) |
(ii)
|
254 | ||||||||||
Refundable and prepaid income taxes
|
55 | - | - | 55 | ||||||||||||
Prepaid expenses and other current assets
|
61 | 482 | - | 543 | ||||||||||||
Total current assets
|
24,948 | 1,818 | (5,129 | ) | 21,637 | |||||||||||
Property, plant and equipment, net
|
- | 56 | - | 56 | ||||||||||||
Intangible assets, net
|
- | - | 4,322 | (d) | 4,322 | |||||||||||
Goodwill
|
- | - | 3,498 | (e ) | 3,775 | |||||||||||
277
|
(ii)
|
|||||||||||||||
Investment in undeveloped land
|
355 | - | - | 355 | ||||||||||||
Other assets
|
275 | 50 | - | 325 | ||||||||||||
Total assets
|
$ | 25,578 | $ | 1,924 | $ | 2,968 | $ | 30,470 | ||||||||
Liabilities and stockholders’ equity
|
||||||||||||||||
Current liabilities
|
||||||||||||||||
Accounts payable and accrued expenses
|
$ | 381 | $ | 944 | - | $ | 1,325 | |||||||||
Income taxes payable
|
331 | - | - | 331 | ||||||||||||
Deferred revenue
|
- | 18 | - | 18 | ||||||||||||
Current portion of officers retirement bonus liability
|
- | 150 | - | 150 | ||||||||||||
Total current liabilities
|
712 | 1,112 | - | 1,824 | ||||||||||||
Deferred tax liability
|
- | - | 707 | (g) | - | |||||||||||
(707 | ) | (i) | ||||||||||||||
Liability for contingent consideration
|
- | - | 392 | (c ) | 392 | |||||||||||
Officers retirement bonus liability
|
- | 1,053 | (311 | ) | (f) | 742 | ||||||||||
Total liabilities
|
712 | 2,165 | 81 | 2,958 | ||||||||||||
Stockholders’ equity
|
||||||||||||||||
Common stock
|
181 | 76 | 9 | (b) | 190 | |||||||||||
(76 | ) | (h) | ||||||||||||||
Additional paid-in capital
|
30,004 | 1,111 | 1,930 | (b) | 31,934 | |||||||||||
(1,111 | ) | (h) | ||||||||||||||
Accumulated deficit
|
(3,960 | ) | (1,025 | ) | 1,025 | (h) | (3,253 | ) | ||||||||
707 | (i) | |||||||||||||||
Treasury stock, at cost
|
(1,359 | ) | (403 | ) | 403 | (h) | (1,359 | ) | ||||||||
Total stockholders' equity
|
24,866 | (241 | ) | 2,887 | (b) | 27,512 | ||||||||||
Total liabilities and stockholders’ equity
|
$ | 25,578 | $ | 1,924 | $ | 2,968 | $ | 30,470 |
NATIONAL PATENT DEVELOPMENT CORPORATION
|
||||||||||||||||
PRO FORMA CONDENSED COMBINED CONSOLIDATED STATEMENT OF OPERATIONS
|
||||||||||||||||
For the nine months ended September 30, 2012
|
||||||||||||||||
(in thousands, except per share amounts)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Historical
National
Patent
|
Historical
Winthrop
|
Pro Forma
Adj increase
/ (decrease)
|
Pro Forma
Statement of
Operations
|
|||||||||||||
Revenues
|
||||||||||||||||
Investment management services
|
$ | - | $ | 2,110 | $ | - | $ | 2,110 | ||||||||
Other investment advisory services
|
- | 2,171 | - | 2,171 | ||||||||||||
Financial research and related data
|
- | 695 | - | 695 | ||||||||||||
- | 4,976 | - | 4,976 | |||||||||||||
Expenses
|
||||||||||||||||
Acquisition related costs
|
860 | 94 | (954 | ) | (m) | - | ||||||||||
Selling, general and administrative
|
1,349 | 4,923 | 424 | (j) | 7,365 | |||||||||||
501 | (k) | |||||||||||||||
168 | (l) | |||||||||||||||
2,209 | 5,017 | 139 | 7,365 | |||||||||||||
Operating (loss) income
|
(2,209 | ) | (41 | ) | (139 | ) | (2,389 | ) | ||||||||
Investment and other income, net
|
(27 | ) | - | - | (27 | ) | ||||||||||
(Loss) income from continuing operations before
income taxes
|
(2,236 | ) | (41 | ) | (139 | ) | (2,416 | ) | ||||||||
Income tax expense
|
(193 | ) | - | - | (193 | ) | ||||||||||
Loss from continuing operations
|
$ | (2,429 | ) | $ | (41 | ) | $ | (139 | ) | $ | (2,609 | ) | ||||
Basic and diluted loss per share from
|
||||||||||||||||
continuing operations
|
$ | (0.14 | ) | $ | (0.14 | ) | ||||||||||
Weighted average common shares outstanding
|
17,586 | 1,484 | (n) | 19,070 |
NATIONAL PATENT DEVELOPMENT CORPORATION
|
||||||||||||||||
PRO FORMA CONDENSED COMBINED CONSOLIDATED STATEMENT OF OPERATIONS
|
||||||||||||||||
For the year ended December 31, 2011
|
||||||||||||||||
(in thousands, except per share amounts)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Historical
National
Patent
|
Historical
Winthrop
|
Pro Forma
Adj increase
/ (decrease)
|
Pro Forma
Statement of
Operations
|
|||||||||||||
Revenues
|
||||||||||||||||
Investment management services
|
$ | - | $ | 2,841 | $ | - | $ | 2,841 | ||||||||
Other investment advisory services
|
- | 2,842 | - | 2,842 | ||||||||||||
Financial research and related data
|
- | 830 | - | 830 | ||||||||||||
- | 6,513 | - | 6,513 | |||||||||||||
Expenses
|
||||||||||||||||
Selling, general and administrative
|
1,812 | 6,765 | 566 | (j) | 10,250 | |||||||||||
855 | (k) | |||||||||||||||
252 | (l) | |||||||||||||||
1,812 | 6,765 | 1,673 | 10,250 | |||||||||||||
Operating Loss
|
(1,812 | ) | (252 | ) | (1,673 | ) | (3,737 | ) | ||||||||
Investment and other income, net
|
18 | - | - | 18 | ||||||||||||
Loss from continuing operations before
income taxes
|
(1,794 | ) | (252 | ) | (1,673 | ) | (3,719 | ) | ||||||||
Income tax expense
|
(257 | ) | (3 | ) | - | (260 | ) | |||||||||
Loss from continuing operations
|
$ | (2,051 | ) | $ | (255 | ) | $ | (1,673 | ) | $ | (3,979 | ) | ||||
Basic and diluted loss per share from
|
||||||||||||||||
continuing operations
|
$ | (0.12 | ) | $ | (0.21 | ) | ||||||||||
Weighted average common shares outstanding
|
17,580 | 1,360 | (n) | 18,940 |
(a) Cash paid
|
$4,852,000
|
|
(b) Issuance of 881,206 common shares of National Patent based on the closing price of $2.75 per share on September 30, 2012 and a 20% discount to reflect the three-year transfer restriction
|
1,939,000
|
|
(c)Fair Value of contingent consideration related to guarantee of a value of common shares issued based on preliminary estimate.
|
392,000
|
|
$7,183,000
|
||
Total estimated
fair value
|
||||
Current assets
|
$1,541,000
|
|||
Intangible assets:
|
||||
Investment management and advisory contracts
|
$ 3,236,000
|
|||
Trademarks
|
433,000
|
|||
Proprietary software and technology
|
653,000
|
|||
4,322,000
|
||||
Other non-current assets
|
106,000
|
|||
Goodwill
|
3,775,000
|
|||
Current liabilities
|
(962,000)
|
|||
Officer retirement bonus liability
|
(892,000)
|
|||
Deferred taxes payable
|
(707,000)
|
|||
Total preliminary purchase price
|
$7,183,000
|
|||
(a)
|
Represents cash paid to holders of Winthrop common stock
|
(b)
|
Represents estimated fair value of 881,206 common shares of National Patent issued to holders of Winthrop common stock
|
(c)
|
Represents liability for fair value of contingent consideration. At each reporting date such liability will be adjusted to its then fair value with changes in fair value recognized in earnings until the contingent consideration arrangement is resolved
|
(d)
|
Represents the adjustment to record the estimated fair value of intangible assets acquired
|
(e)
|
Represents the adjustment to record goodwill related to the acquisition
|
(f)
|
Represents the adjustment to record Officer’s retirement bonus liability at fair value on date of acquisition based on a 14% discount rate
|
(g)
|
Represents the adjustment to record a net deferred tax liability for the excess of deferred taxes related to excess of fair values over the tax basis of acquired net assets of Winthrop over Winthrop’s existing deferred tax asset for its Federal net operating loss carry forward
|
(h)
|
Represents the elimination of the stockholders’ deficit accounts of Winthrop
|
(i)
|
Represents elimination of National Patent’s deferred tax valuation allowance to the extent of the net deferred federal tax liability recorded in the acquisition (see (g)), which will be recorded as a deferred federal tax benefit in earnings at the date of acquisition and accordingly has been credited to accumulated deficit. This adjustment results as Winthrop will be included in National Patent’s consolidated federal income tax return from date of acquisition and therefore deferred federal tax liabilities recorded in connection with the acquisition are able to offset the reversal of National Patent’s pre-existing deferred tax assets
|
(ii)
|
Represents the elimination of the receivable from National Patent for reimbursement of costs incurred by Winthrop related to the acquisition
|
For the year
ended
December 31,
2011
|
For the nine
months ended
September 30,
2012
|
|
(l) Represents adjustment to reflect increase, effective September 1, 2012, in the monthly sublease and administrative support services rate from $19,700 to $40,700 (or $252,000 per year) charged to National Patent by Bedford Oak Advisors, LLC., a related party, as a result of the acquisition and National Patent transitioning from a shell company into an operating company
|
$252,000
|
$168,000
|
(m) Elimination of acquisition related cost representing a non-recurring charge directly related to the acquisition of $860,000 for National Patent and $94,000 for Winthrop
|
954,000
|
|
(n) Basic and diluted pro forma loss per share is computed based on the following:
|
||
Weighted average common shares of National Patent
outstanding during the period |
17,580,000
|
17,586,000
|
Common shares of National Patent issued to holders of
Winthrop common stock as merger consideration |
881,206
|
881,206
|
Vested RSUs to be settled with common shares of
National Patent: |
||
Vested on Closing Date
|
479,280
|
479,280
|
Vested on first anniversary of Closing Date (370,000 x 1/3)
|
123,333
|
|
Pro forma weighted average common shares - basic and diluted
|
18,940,486
|
19,069,819
|
Diluted pro forma loss per share excludes the following common
stock equivalents as they are anti-dilutive: |
||
Stock options
|
3,300,000
|
3,300,000
|
Unvested RSUs
|
370,000
|
246,667
|
3,670,000
|
3,546,667
|
NATIONAL PATENT DEVELOPMENT CORPORATION
|
|||
|
By:
|
/s/ Ira J. Sobotko | |
Name: | Ira J. Sobotko | ||
Title: | Vice President & Chief Financial Officer | ||
(b)
|
Piggyback Rights
.
|
|
(c)
|
Registration Procedures
.
|
NATIONAL PATENT DEVELOPMENT CORPORATION
|
|||
By:
|
|||
Name: | |||
Title: | |||
INVESTORS : | |||
[TO COME ] |
Name and Address
|
[NAME]
[●]
[●]
[●]
Facsimile: [●]
with a copy to (which shall not constitute notice):
[FIRM]
[●]
[●]
[●]
Facsimile: [●]
Attention: [●], Esq.
|
[NAME]
[●]
[●]
[●]
Facsimile: [●]
with a copy to (which shall not constitute notice):
[FIRM]
[●]
[●]
[●]
Facsimile: [●]
Attention: [●], Esq.
|
Name of Grantee:
|
`Exhibit 10.9
No. of Stock Units: ______
|
NATIONAL PATENT DEVELOPMENT
CORPORATION
|
||||
By:
|
||||
Name:
|
||||
Title:
|
||||
Address: |
PURCHASER
:
|
||
NATIONAL PATENT DEVELOPMENT CORPORATION
|
||
By:
|
||
Name:
|
||
Title:
|
||
HOLDER:
|
||
As set forth on
Schedule I
hereto
|
Holder
|
Number of Shares/Company
Stock Options |
Contact Information
|
Signature of Holder
|
AGREEMENT OF LEASE
between
440 WHEELERS FARM ROAD, L.L.C.,
|
||
Landlord,
|
||
and | ||
THE WINTHROP CORPORATION, | ||
Tenant.
|
||
Page
|
||
1.1
|
Definitions
|
1 |
1.2
|
Demise
|
1
|
1.3
|
Fixed Rent; Initial Free Fixed Rent and Escalation Rent Period
|
1
|
1.4
|
Partial Months
|
2
|
1.5
|
Additional Rent
|
2
|
ARTICLE 2
|
||
ESCALATION
|
||
2.1
|
Certain Definitional Matters
|
2
|
2.2
|
Tax Payment
|
5
|
2.3
|
Tax Reduction Proceedings
|
5
|
2.4
|
Operating Expense Payment
|
6
|
2.5
|
Right to Audit
|
7
|
2.6
|
Estimated Operating Expenses and Taxes for 1999; Annual Cap on Controllable
|
|
Operating Expenses
|
7
|
|
ARTICLE 3
|
||
USE AND OCCUPANCY
|
||
3.1
|
Permitted Use
|
8
|
3.2
|
Limitations
|
8
|
3.3
|
Advertising
|
9
|
ARTICLE 4
|
||
ALTERATIONS
|
||
4.1
|
General
|
9
|
4.2
|
Procedure for Alterations
|
9
|
4.3
|
Permits and Insurance for Alterations
|
9
|
4.4
|
Financial Integrity
|
10
|
4.5
|
Effect on Building
|
10
|
4.6
|
Time for Performance of Alterations; Rules
|
10
|
4.7
|
Removal of Alterations and Tenant's Property
|
10
|
4.8
|
Contractors; Architectural Supervision
|
11
|
4.9
|
Mechanics' Liens
|
11
|
4.10
|
Labor Conflicts
|
11
|
4.11
|
Landlord's Expenses
|
11
|
4.12
|
Alterations Without Landlord's Consent
|
11
|
4.13
|
Initial Alterations; Building-Standard Fit-up Fund; Moving Allowance
|
11
|
ARTICLE 5
|
||
REPAIRS
|
||
5.1
|
Landlord's Repairs
|
12
|
5.2
|
Tenant's Repairs
|
13
|
5.3
|
Limitations
|
13
|
5.4
|
Landlord's Obligation to Minimize Interference
|
13
|
ARTICLE 6
|
||
REQUIREMENTS OF LAW
|
||
6.1
|
Tenant's Obligation to Comply with Requirements
|
13
|
6.2
|
Landlord's Obligation to Comply with Requirements
|
14
|
6.3
|
Tenant's Right to Contest Requirements
|
14
|
6.4
|
Rent Control
|
14
|
ARTICLE 7
|
||
SUBORDINATION
|
||
7.1
|
Subordination and Non-Disturbance
|
15
|
7.2
|
Attornment
|
15
|
7.3
|
Tenant's Estoppel Certificate
|
16
|
7.4
|
Landlord's Estoppel Certificate
|
17
|
7.5
|
Rights to Cure Landlord's Default
|
17
|
ARTICLE 8
|
||
RULES AND REGULATIONS
|
||
8.1
|
Adoption; Enforcement
|
17
|
ARTICLE 9
|
||
INSURANCE
|
||
9.1
|
Tenant's Insurance
|
17
|
9.2
|
Landlord's Insurance
|
18
|
9.3
|
Waiver of Subrogation
|
18
|
9.4
|
Evidence of Insurance
|
19
|
ARTICLE 10
|
||
CASUALTY
|
||
10.1
|
Landlord's Obligation to Restore
|
19
|
10.2
|
Landlord's Termination Right
|
19
|
10.3
|
Tenant's Termination Right
|
20
|
10.4
|
Termination Rights at End of Term
|
20
|
10.5
|
No Other Termination Rights
|
20
|
ARTICLE 11
|
||
EMINENT DOMAIN
|
||
11.1
|
Effect of Condemnation
|
20
|
11.2
|
Condemnation Award
|
21
|
11.3
|
Temporary Taking
|
21
|
ARTICLE 12
|
||
ASSIGNMENT, SUBLETTING, MORTGAGING
|
||
|
||
12.1
|
General Limitation
|
21
|
12.2
|
Landlords Expenses
|
22
|
12.3
|
No Release
|
22
|
12.4
|
Certain Permitted Transfers
|
22
|
12.5
|
Replacement Lease
|
22
|
12.6
|
Certain Rights to Sublease
|
23
|
12.7
|
Sublease Profit
|
24
|
12.8
|
Certain Rights to Assign
|
24
|
12.9
|
Assignment Profit
|
25
|
12.10
|
Certain Permitted Occupants
|
25
|
12.11
|
Landlord's Recapture
|
26
|
12.12
|
Required Documents
|
27
|
ARTICLE 13
|
||
ELECTRICITY
|
||
13.1
|
Service
|
27
|
13.2
|
Electricity Additional Rent
|
28
|
13.3
|
Termination of Electric Service
|
28
|
ARTICLE 14
|
||
ACCESS TO PREMISES
|
||
14.1
|
Ducts, Pipes and Conduits
|
28
|
14.2
|
Access
|
29
|
14.3
|
Keys
|
29
|
14.4
|
Building Changes
|
29
|
ARTICLE 15
|
||
DEFAULT
|
||
15.1
|
Events of Default
|
29
|
15.2
|
Termination
|
30
|
ARTICLE 16
|
||
REMEDIES AND DAMAGES
|
||
16.1
|
Certain Remedies
|
31
|
16.2
|
Certain Waivers
|
31
|
16.3
|
Damages.
|
31
|
ARTICLE 17
|
||
LANDLORD FEES AND EXPENSES | ||
17.1
|
Landlord's Costs After Event of Default
|
32
|
17.2
|
Interest on Late Payments
|
32
|
ARTICLE 18
|
||
CONDITION OF PREMISES
|
||
18.1
|
No Representations
|
33
|
ARTICLE 19
|
||
END OF TERM
|
||
19.1
|
Condition of Premises at End of Term
|
33
|
19.2
|
Holding Over
|
33
|
ARTICLE 20
|
||
QUIET ENJOYMENT
|
||
20.1
|
Landlord's Covenant
|
33
|
ARTICLE 21
|
||
'POSSESSION
|
||
21.1
|
Delivery
|
33
|
ARTICLE 22
|
||
" NO WAIVER
|
||
22.1
|
No Surrender
|
34
|
22.2
|
No Waiver by Landlord
|
34
|
22.3
|
No Waiver by Tenant
|
34
|
ARTICLE 23
|
||
WAIVER OF TRIAL BY JURY
|
||
23.1
|
Waiver
|
34
|
ARTICLE 24
|
||
SERVICES
|
||
24.1
|
Passenger Elevators
|
35
|
24.2
|
Freight Elevators
|
35
|
24.3
|
HVAC
|
35
|
24.4
|
Cleaning
|
36
|
24.5
|
Water
|
36
|
24.6
|
Directory; Monument Signs
|
37
|
24.7
|
Building Security
|
37
|
24.8
|
Cafeteria; Private Dining Room
|
37
|
24.9
|
Locker Facilities
|
38
|
24.10
|
Fiber Optic Cable
|
38
|
ARTICLE 25
|
||
INABILITY TO PERFORM
|
||
25.1
|
Unavoidable Delays
|
38
|
25.2
|
Rent Credit
|
39
|
ARTICLE 26
|
||
BILLS AND NOTICES
|
||
26.1
|
Means of Notice
|
39
|
ARTICLE 27
|
||
OUTSIDE OF PREMISES
|
||
27.1
|
Outside of Premises
|
39
|
ARTICLE 28
|
||
SECURITY
|
||
28.1
|
Security Deposit
|
40
|
ARTICLE 29
|
||
BROKER
|
||
29.1
|
Commission
|
40
|
ARTICLE 30
|
||
INDEMNITY
|
||
30.1
|
Tenant's Indemnification of Landlord
|
41
|
30.2
|
Landlord's Indemnification of Tenant
|
41
|
30.3
|
Indemnification Procedure
|
41
|
ARTICLE 31
|
||
ADDITIONAL PROVISIONS
|
||
31.1
|
Not Binding Until Execution
|
41
|
31.2
|
Extent of Landlord's Liability
|
41
|
31.3
|
Rent Under Section 502(b)(7) of the Bankruptcy Code
|
42
|
31.4
|
Survival
|
42
|
31.5
|
No Recording
|
42
|
31.6
|
Landlord's Consents and Approvals
|
42
|
31.7
|
Merger; Written Supplements
|
43
|
31.8
|
Submission to Jurisdiction
|
43
|
31.9
|
Captions
|
43
|
31.10
|
Parties Bound
|
43
|
31.11
|
Schedules and Exhibits
|
43
|
31.12
|
Gender
|
43
|
31.13
|
Divisibility
|
44
|
31.14
|
Adjacent Excavation
|
44
|
31.15
|
Parking
|
44
|
31.16
|
Lease Renewal
|
44
|
31.17
|
Freight Access
|
45
|
31.18
|
Termination Option
|
46
|
31.19
|
Right of First Offer
|
46
|
31.20
|
Hazardous Substances
|
47
|
31.21
|
Representations
|
48
|
31.22
|
Outside Business Installation
|
48
|
31.23
|
Common Areas
|
50
|
31.24
|
Year 2000 Compliance
|
50
|
31.25
|
Contraction Option
|
50
|
EXHIBIT "A"
|
|
DEFINITIONS
|
|
EXHIBIT "B"
|
|
HVAC SPECIFICATIONS
|
|
EXHIBIT "B-1"
|
|
WORK LETTER
|
|
EXHIBIT "C"
|
|
CLEANING SPECIFICATIONS
|
|
EXHIBIT "D"
|
|
FIXED RENT SCHEDULE
|
|
EXHIBIT "E"
|
|
INTENTIONALLY OMITTED
|
|
SCHEDULE 1
|
|
PREMISES (INCLUDING ANY OPTION SPACE)
|
|
SCHEDULE 2
|
|
RULES & REGULATIONS
|
|
SCHEDULE 3
|
|
PRESENT MORTGAGEE'S NON-DISTURBANCE AGREEMENT
|
|
SCHEDULE 4
|
|
RESERVED PARKING SPACES
|
|
SCHEDULE 5
|
|
CONTRACTION SPACE
|
|
SCHEDULE 6
|
|
SECURITY DEPOSIT INSTRUMENTS
|
440 WHEELERS FARM ROAD, L.L.C.,
Landlord
By: SAP II Manager, Inc.
|
|
/s/ L.Thomas Osterman | |
Name: L.Thomas Osterman
Title: Vice President
|
|
|
|
THE WINTHROP CORPORATION,
Tenant
|
|
By: /s/ Peter M. Donovan
|
|
Name: Peter M. Donovan
Title: President
|
1. Building Standard
Partitions
|
Building standard partitions are constructed of 2 1/2", 25 gauge metal studs, 24" on center (o.c.), with 5/8" thick drywall on each side. The Building Standard partitions are attached to a metal runner at the ceiling and a metal runner on the floor. Gypsum board is to be taped and floated and ready to paint.
|
|
Quantity: 60 if per 1000 usf
|
||
2. Paint:
|
All Building Standard partitions are to receive two (2) coats of Building Standard paint; the first coat will be a latex primer with the second coat being a latex eggshell finish in a color to be designated by Tenant's Architect from the Building Standard color chart available from the Construction Manager.
|
|
Quantity: 60 if per 1000 usf
|
||
3. Flooring:
|
The Building Standard carpet is a Blueridge Prodigy P371, broadloom, 28 ounce high quality cut and loop, direct glue down carpet offered in a choice of colors. Building Standard 1/8" x 12" x 12" vinyl composition floor may be substituted where resilient floor covering is required. (In lieu of the above Building Standard carpet, Tenant may substitute its own new, commercially reasonable carpeting selection, provided Tenant purchases and delivers same to the construction site in sufficient quantity and in a timely manner at Tenant's sole cost and expense, in which case Tenant shall receive a credit for the unused Building Standard carpet equaling $1.25 per rentable square foot of the Premises. Any delay to the construction or completion of the Initial Alterations caused by such carpeting substitution shall be deemed a Tenant Delay.)
|
|
4. Base:
|
Resilient vinyl straight base (Burke) at carpet in Building Standard colors. Building Standard base is 2 1/2" high located on each side of Building Standard partition.
|
|
5. Doors, Frames
and Hardware:
|
Building Standard doors are 3'-0" x 9'-0" (nominal) x 1 3/4" Algona wood doors with natural pre-finished veneer, pre-mortised for latch set hardware and cut to size. Tenants on multi-tenant floors shall be provided up to two rated Building Standard doors set in hollow metal frames for egress and ingress into Common Areas.
|
|
Building Standard door frames are extruded aluminum RACO frames with a factory-painted finish to match Building Standard Fuller O'Brien "Whisper White" finish on perimeter drywall and column enclosures.
|
Building Standard hardware is a McKinney TA 714 4 112" x 4 112" x 26 D solid lever brushed chrome handle with a US26D finish and a latchset on all interior Building Standard doors. Building Standard Sargent 648205 LNE x 32 D locksets and automatic door closers are provided at Tenant entrance doors. Each Building Standard door is to have three hinges and a floor-mounted Ives 436B26D door stop on Building Standard carpet all in US26D finish.
|
||
Quantity: 2.5 doors per 1000 usf + 1 entry door
|
||
6. Ceiling
|
Building Standard 2'0" x 2'0" Armstrong Silhouette 9/16 slotted edge with Armstrong Cirrus Ceiling Tile, nominal 9'0" above the finished floor.
|
|
7. Window Treatment:
|
Building Standard one-inch aluminum horizontal slat blinds.
|
|
Quantity: Existing on all exterior windows.
|
||
8. Lighting Fixtures:
|
2'0" x 2'0" Mark Direct/Indirect Fluorescent Fixture, Model 1 DLS 22-2-
|
|
40 WB6-EBX 277 PSSB and switches Decora rocker style for light control.
|
||
Quantity: One 2x2 light fixture for every 75 usf.
|
||
9. Exit Sign
|
Signage for means of egress, edge lit, red LED with integral battery pack.
|
|
Quantity: One per 2000 usf.
|
||
10. Emergency Lights:
|
Showing means of egress during power outage. Battery packs on regular lights only.
|
|
Quantity: One emergency light for every 1000 usf.
|
||
11.
Light Switches
|
Building Standard single pole rocker type switches are white with white plastic face plates mounted vertically at 4'0" vs 3'2" above the finished floor.
|
|
:
|
Quantity: 3 per 1000 usf
|
|
12. Power:
|
Receptacles deliver 120 volt power to equipment.
|
|
Quantity: When the majority of space is used for cubicle or module furniture layout, there shall be five receptacles (Decora style) per 1000 usf. There will be one 20 amp electrical circuit provided for the outlets for every 430 usf or for every six receptacles. When there is not a majority of modular furniture (40% of space) then eight receptacles per 1000 usf and one 20A electrical circuit for every 430 usf.
|
||
13. Telephone & Data
Outlets:
|
Building Standard telephone and data outlets shall be wall mounted vertically at 1'0" above the floor with conduit extending to the ceiling plenum above. All wiring within the ceiling plenum not in conduit must
|
|
be approved for return air plenum use by the City of Milford. Wall boxes to be provided by the Landlord.
|
||
Quantity: 3 per 1000 usf.
|
||
14. Fire Protection
Sprinkler Head:
|
The facility is equipped with a wet pipe sprinkler system with up right heads in the unfinished areas and flush ceiling mounted heads with white cover plates in the finished areas.
|
|
Quantity: One head per 225 usf for interior offices. One head per 120 usf for perimeter offices. Heads located in ceiling tiles will be centered in the tile.
|
||
15.
Life Safety Systems:
|
Building Standard exit signs, fire hose valve cabinets, fire alarm pull stations and fire extinguisher cabinets will be provided and installed in accordance with the code requirements for Tenant's layout, except to the extent the requirement is a result of Tenant Extra Work. Building Standard speaker/strobes, exit signs, and emergency lighting as required by code for light hazard general office use.
|
|
Quantity: There will be one pullstation for every 200 linear feet and be each exit door. There will be one horn/strobe inline of sight for every 2000 ft.
|
||
16.
Air Conditioning
and Heating:
|
The rooftop air conditioning units are ducted to above ceiling VAV terminals, from the terminal to diffusers in the ceiling. The ceiling space is utilized as a return air plenum. Ventilation, fresh air, is introduced into the air system at the RTU at a rate of 15 CFM per person (approx. .133 CFM of tenant space). The building base air conditioning system is designed to maintain space conditions of 75 deg./50% RH in the summer and 70 deg. in the winter. The system is designed to handle the building skin loads and internal loads of one person per 175 usf and lighting and power loads of 6.0 watts total per rsf. The base building air conditioning system is operated from 8:00 a.m. to 6:00 p.m. Monday through Friday - the system is in the unoccupied mode on Saturday, Sunday and holidays.
|
|
Quantity: Base building.
|
||
Option: If the tenant space internal heat gain loads exceed those specified as building standards or if special areas require temperature, humidity, or operating hours other than the building standard then supplemental air conditioning equipment and systems are to be installed. Cost: Subject to requirements and layouts.
|
||
16a. Variable Air
Volume Terminals -
Perimeter.
|
The perimeter zones consist of the 12'0" wide area around the exterior wall of the building. The VAV terminals at the perimeter spaces are parallel fan units with electric reheat. On a call for cooling, these
|
|
1.
|
Waste paper baskets will be emptied and trash removed to a designated location on the premises. |
2.
|
All composition floor tile will be swept and dustmopped with a chemically treated mop for dust control.
|
3.
|
All furniture such as tables, chairs, desks, cabinets and allied attachments will be dusted.
|
4.
|
Window sills will be dusted.
|
5.
|
Ashtrays will be emptied and cleaned.
|
6.
|
All carpeting will be thoroughly vacuumed three (3) times per week.
|
7.
|
Formica and glass desk tops and glass doors will be damp dusted.
|
8.
|
Papers and folders on desks are not to be moved.
|
9.
|
Remove recycling materials from central locations in office areas three (3) times per week.
|
10.
|
Extinguish lights upon securing each suite at end of shift.
|
1.
|
Pictures, graphs, charts, and similar wall hangings within high hand reach shall be dusted one (1) time per week.
|
2.
|
All telephones will be wiped clean (1) time per week.
|
3.
|
Coat closets will be vacuumed and checked for general cleanliness one (1) time per week.
|
4.
|
Remove smudges and fingerprints from around light switches and door knobs.
|
1.
|
Perform high dusting to include grills, louvers and similar ornamental work located above high hand reach.
|
2.
|
Dust and clean smudges from all vinyl bases.
|
1.
|
Porcelain fixtures will be scoured clean.
|
2.
|
Both sides of toilet seats will be washed with a mild germicidal solution.
|
3.
|
Bright work will be dry polished.
|
4.
|
Receptacles will be emptied and cleaned.
|
5.
|
Mirrors will be cleaned.
|
6.
|
Partitions will be wiped down as necessary.
|
7.
|
Shelves will be cleaned.
|
8.
|
Floors will be washed with a mild non-injurious disinfectant.
|
9.
|
Hand soap, hand towels and toilet tissues will be installed and maintained.
|
1.
|
Lavatory flooring will be machine scrubbed one (I) time per month.
|
2.
|
Grills and louvers will be dusted one (I) time per month.
|
1.
|
Counter, exterior of cabinet surfaces
and
appliances will be cleaned and sanitized nightly.
|
2.
|
Refrigerator will be emptied
and cleaned one (1) time per week,
on Fridays.
|
3.
|
Sink will be scoured nightly.
|
4.
|
Dishes left in sink will be washed nightly. (Detergent will be
furnished by Tenant.)
|
5.
|
Coffee pots will be scoured clean.
|
6.
|
Interior of all appliances, microwave, toaster, coffee maker will be thoroughly cleaned and sanitized one (1) time per week, on Fridays.
|
EXHIBIT D
FIXED RENT SCHEDULE
|
Lease Period
|
RSF47,
|
Annual Rate Per RSF
|
Annual Rate
|
Monthly Rate
|
Commencement Date to Rent Commencement
|
||||
544
|
$0.00
|
$0.00
|
$0.00
|
|
Date ("RCD")
|
||||
47,544
|
||||
RCD to Day Preceding the Second Anniversary of the RCD
|
$12.00
|
$570,528.00
|
$47,544.00
|
|
47,544
|
||||
Second Anniversary
of
the RCD to Day Preceding the Fifth Anniversary
of
the RCD
|
$13.50
|
$641,844.00
|
$53,487.00
|
|
Fifth Anniversary of the RCD to Day Preceding
|
47,544
|
|||
the Seventh Anniversary of the RCD
|
$14.00
|
$665,616.00
|
$55,468.00
|
|
Seventh Anniversary of the RCD to the Fixed
|
||||
Expiration Date
|
47,544
|
$15.00
|
||
$713,160.00
|
$59,430.00
|
WITNESSES | LENDER: | |||
SUBWAY SUBS, INC. | ||||
by: | ||||
Title: | ||||
Its | ||||
TENANT:
|
||||
THE WINTHROP CORPORATION | ||||
by: | ||||
Title: | ||||
Its | ||||
LANDLORD: | ||||
440 WHEELERS FARM ROAD, L.L.C.
|
||||
by: |
SAP
II
Manager, Inc., its manager,
|
|||
by: | ||||
Title: | ||||
Its | ||||
Notary Seal | |
Notary Public | |
My Commission Expires: _____________ |
STATE OF
|
)
)
ss:
)
|
, 1999
|
|
COUNTY OF
|
Notary Seal | |
Notary Public | |
My Commission Expires: _____________ |
STATE OF
|
)
)
ss:
)
|
, 1999
|
|
COUNTY OF
|
|
(a)
|
TWC has the power and right to enter into and perform this Agreement;
|
|
(b)
|
TWC is a corporation duly organized, existing and in good standing under the laws of the State of Connecticut;
|
|
(c)
|
The execution of this Agreement by TWC, and the performance of its duties hereunder, do not and will not contravene any right of any third
party;
|
|
(d)
|
The Collateral is and will be owned solely by TWC free and clear of all liens and encumbrances except for the security interest created by this Agreement;
|
|
(e)
|
There are no financing statements or other documents evidencing a lien on file with respect to the Collateral, and so long as this Agreement is in effect, TWC will not execute any such statement or document without the prior consent of Secured Party;
There is no claim, litigation or proceeding threatened or pending that would have a material adverse effect on the ownership of the Collateral; and
|
|
(g)
|
TWC's name is as set forth at the beginning of this Agreement, and TWC shall not add or change names without prior written notice to Secured Party.
|
|
(a)
|
TWC will keep the Collateral in the Safekeeping Account (as defined in the Safekeeping Agreement) and subject to the Safekeeping Agreement;
|
|
(b)
|
The Collateral will not be encumbered or transferred, whether voluntarily or by operation of law; and
|
|
(c)
|
TWC will execute, at Secured Party's request, such documents that Secured Party deems necessary to perfect, protect, preserve and maintain the security interest granted herein.
|
|
(a)
|
TWC fails to pay or otherwise perform any of the Obligations beyond any applicable grace period set forth in the Lease;
|
|
(b)
|
TWC fails to substantially comply with or perform within ten (10) days from the date required for performance any provision of this Agreement;
|
|
(c)
|
Any warranty or representation made herein by TWC to Secured Party is untrue;
|
|
(d)
|
Any type of lien is placed on the Collateral and not removed within 60 days; or
|
|
(e)
|
Bankruptcy proceedings are commenced by or against TWC under any provision of the Bankruptcy Code and the same are not dismissed within 60 days. |
|
(a)
|
Secured Party shall have all the rights and remedies of a secured party upon default, including but not limited to those provided under the Uniform Commercial Code as enacted in the State of Connecticut;
|
|
(b)
|
Secured Party shall have access to the Collateral in the manner provided in Section 5 of the Safekeeping Agreement;
|
|
(c)
|
TWC hereby appoints Secured Party as attorney-in-fact for TWC, to exercise any or all of the foregoing powers, and any other powers necessary for the proper exercise of the foregoing, all of which being coupled with an interest, shall be irrevocable until the termination of this Agreement.
|
|
(a)
|
Except to the extent specifically referenced herein, this Agreement is the only agreement between the parties regarding its subject matter, and supersedes all prior or contemporaneous agreement, whether oral or written;
|
|
(b)
|
No modification or waiver shall be effective unless contained in a writing signed by the modifying or waiving party. The waiver of any default shall not be deemed a waiver of any other subsequent default.
|
|
(c)
|
Any provision of this Agreement which is declared invalid or unenforceable by a court of competent jurisdiction shall be severed and the remainder of this Agreement shall be enforced to the full extent permitted by law.
|
|
(d)
|
This Agreement shall be governed by and construed in accordance with the laws of the State of Connecticut, without giving effect to any choice of law principles.
|
|
(e)
|
This Agreement shall inure to the benefit of and be binding on the parties and their respective successors and assigns.
|
|
(f)
|
TWC AND SECURED PARTY HEREBY WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION, DEFENSE, COUNTERCLAIM, CROSSCLAIM AND/OR ANY FORM OF PROCEEDING BROUGHT IN CONNECTION WITH THIS AGREEMENT OR RELATING TO THE COLLATERAL NOW OR HEREAFTER SECURING THIS AGREEMENT.
|
"Collateral" shall mean an amount equal to $300,000 (THREE HUNDRED THOUSAND DOLLARS) of assets held in the Safekeeping Account (Account Number ), whether such assets be in the form of monies, securities or other property. The valuation of the property in such Safekeeping Account shall be determined by Investors Bank & Trust Co. in accordance with the Safekeeping Agreement. |
(a)
|
Each of Customer's representations and warranties set forth in the Lease is true and correct as of the date hereof and as of the date of each transaction contemplated hereunder and thereunder.
|
(b)
|
Customer has full power and authority to enter into this Agreement and to engage in the transactions contemplated hereby.
|
(c)
|
This Agreement is the valid and binding agreement of Customer, enforceable against Customer in accordance with its terms.
|
By:
|
||
Title: | ||
Address: 1000 Lafayette Boulevard
Bridgeport, CT. 06443
ATTENTION: Eugene J. Helm
|
||
Telephone: (203) 330-5030 | ||
Telecopier: (203) 330-5001 | ||
Investors Bank & Trust Company
|
||
By: | ||
Title: | ||
Address: 200 Clarendon Street
Boston, MA 02116
ATTENTION: Steven K. Krekorian
|
||
Telephone: (617) 443-6949 | ||
Telecopier: (617) 330-6033 | ||
440 Wheelers Farm Road, L.L.C. | ||
By: | ||
Title: | ||
Address: 440 Wheelers Farms Road
Milford, CT 06460
ATTENTION: T. Craig, Senior Vice President
|
||
Telephone: (212) 230-2300
Telecopier: (212)
|
||
|
Re:
|
Lease dated July
16
, 1999 (the "Lease"), between 440 Wheelers Farm Road, LLC, as Landlord ("Landlord") and The Winthrop Corporation, as Tenant ("Tenant"), for certain Premises more particularly described therein (the "Premises"), located at 440 Wheelers Farms Road, Milford, Connecticut
|
|
1.
|
Initial Alterations.
Landlord and Tenant hereby agree that Tenant shall have the option, upon written notice given to Landlord on or before September 1, 1999, to elect to have Tenant perform the Initial Alterations to the Premises as opposed to having Landlord perform same as presently provided in the Lease. In the event Tenant makes such election, Landlord shall provide Tenant, during the course of construction, with the $1,283,688.00 Building-Standard Fit-up Fund, along with the related $342,317.00 allowance as provided in Section 4.13 of the Lease, but Landlord and Tenant hereby agree that, as a condition to Tenant making such election, Landlord shall prepare, and Tenant shall promptly execute and deliver to Landlord, an appropriate amendment modifying the Lease to reflect such election by Tenant. Said amendment shall reflect, among other items: that Tenant shall be responsible for performing such construction; that there shall be a fixed Commencement Date and a fixed Rent Commencement Date regardless of when such construction is substantially or actually completed; that there will be no delays in Tenant's initial Free Rent Period due to any delays in Tenant's construction; and that there shall be no outside date or holdover penalty to which Landlord could possibly be subject under the Lease.
|
|
2.
|
Miscellaneous.
As hereby amended, the Lease shall continue in full force and effect, the parties hereby ratifying and confirming the Lease, as so amended. This agreement, together with the Lease, constitutes the full and complete agreement of the parties, and shall supersede any prior or contemporaneous agreements between the parties concerning the subject matters set forth herein. This agreement shall bind and and enure to benefit of Landlord and Tenant, and their respective successors and assigns, subject to the terms of the Lease.
|
Re:
|
That certain Lease and that certain Side Letter Agreement both dated July 16, 1999 (collectively, the
"Lease'),
between 440 Wheelers Farm Road, LLC, as Landlord
("Landlord")
and The Winthrop Corporation, as Tenant ("Tenant"), for certain Premises more particularly described therein (the
"Premises"),
located at 440 Wheelers Farms Road, Milford, Connecticut
|
1.
|
General Definitions.
Capitalized terms used but not separately defined in this
Agreement shall have their respective meanings used in the Lease.
|
2.
|
Tenant's Option to Perform Initial Alterations.
Landlord and Tenant hereby acknowledge that Tenant is exercising its option, pursuant to the above-referenced
Side Letter Agreement, to have Tenant perform the Initial Alterations to the Premises,
as opposed to having Landlord perform same as originally provided in the Lease. As a
condition to exercising such option, the parties are entering into this Agreement to appropriately amend the Lease.
|
3.
|
Amended Commencement Date; Rent Commencement Date.
The
"Commencement
Date"
as defined in
Exhibit "A"
to the Lease, is hereby amended and restated to mean
the later of: (a) the date Landlord delivers possession of the Premises to Tenant for the commencement of the Initial Alterations; or (b) January 15, 2000. The "Rent
Commencement Date"
as defined in
Exhibit "A"
to the Lease, is hereby acknowledged
and confirmed to be August 1, 2000, as provided in said
Exhibit "A"
definition, but
said Rent Commencement Date shall not be delayed or adjusted for any reason
whatsoever, except solely in the event that Landlord (through no fault of Tenant) is
unable to deliver the Premises to Tenant by January 15, 2000 for the purpose of
Tenant's performance of the Initial Alterations, then Tenant's free Fixed Rent and
Escalation Rent period, as described in Section 13 of the Lease, shall be extended
on
a per diem basis for each day after January 15, 2000 that Landlord fails to deliver the
Premises to Tenant for the purpose of Tenant's performance of the Initial Alterations.
|
4.
|
Initial Free Rent Period.
Since Tenant shall be performing the Initial Alterations, and
as contemplated in the above-referenced Side Letter Agreement, there shall be no
extensions to Tenant's initial Free Fixed Rent and Escalation Rent period referred to
in Section 1.3 of the Lease, except as herein specifically provided. Accordingly, the
fourth sentence of said Section 1.3 is hereby deleted in its entirety and is of no further
force or effect.
|
5.
|
Alterations; Miscellaneous Modifications.
The term
"Alterations"
as defined in
Exhibit "A"
to the Lease is hereby amended and restated to be as specifically provided
in said
Exhibit "A"
definition, but the words "but excludes the Initial Alterations
hereunder" in the last line of said definition are hereby deleted in their entirety and the
following substituted therefor: "and includes the Initial Alterations to be performed by
Tenant hereunder." Landlord's approval of Tenant's Plans shall mean that the Initial
Alterations are Qualified Alterations, except with respect to the validity of the
certificate of occupancy for the Premises (which will not have been issued at the time
of Landlord's review of Tenant Plans), and except as otherwise stated in such approval
as to any relevant portions of the Initial Alterations which do not meet the
requirements for Qualified Alterations as set forth in Section 4.1 of the Lease. In
addition, the following related modifications, solely with respect to the Initial
Alterations, are hereby agreed to: (a) the fifteen (15) Business Days for Landlord's
review of Alterations in Section 4.2 shall be changed to ten (10) Business Days with
respect to the Initial Alterations; (h) the worker's compensation insurance policy(ies)
to be furnished to Landlord under Section 4.3, shall, with respect to the Initial Alterations, he obtained by Tenant from Turner for Turner's employees, and from
each subcontractor for its/their respective employees; (c) the prohibition against
performing Alterations during the hours of 8:00 a.m. to 6:00 p.m. on Business Days
under Section 4.6 shall not be applicable with respect to the Initial Alterations; (d) the
design requirement by Landlord's engineer for any Alteration affecting any Building
System in Section 4.8(ii) shall not apply for the Initial Alterations, provided same
shall be subject to the review and reasonable approval of Landlord's engineer, with
Tenant paying Landlord, as Additional Rent, the reasonable costs incurred by
Landlord in connection therewith; and (e) Landlord's right to require Tenant to move materials for Alterations on the freight elevators between 5:00 p.m. and 8:00 a.m. on
Business Days in Section 24.2 shall not apply with respect to the Initial Alterations.
|
6_
|
Performance Bond; Landlord's Expenses.
Landlord and Tenant hereby acknowledge and confirm that Landlord shall not require Tenant to post a performance bond for the Initial Alterations, as provided in Section 4.4 of the Lease. In addition, Landlord and Tenant acknowledge and confirm that Landlord's right to collect Landlord's reasonable, out-of-pocket costs as provided in Section 4.11 of the Lease shall not apply to the Initial Alterations, except with respect to Landlord's reasonable, out-of-pocket, design review costs, which are incurred by Landlord as a result of Tenant using Tenant's own architect and engineer for the Initial Alterations.
|
7.
|
Removal Obligations.
Tenant's removal, repair and restoration rights and obligations as provided in Section 4.7 of the Lease are hereby acknowledged and confirmed to apply to: (a) Tenant's Property; (b) any trade fixtures paid for by Tenant as part of the Initial Alterations; (c) any Alterations made after the Initial Alterations; and (d) any Specialty Alterations.
|
8.
|
Architect; Engineer; and General Contractor.
Landlord and Tenant hereby acknowledge and confirm that Tenant shall use Turner Construction Company
("Turner")
as the construction manager and general contractor, Robert W. Schunk Associates, as the engineer, and Van Summern Group, as the architect
-
for Tenant's performance of the Initial Alterations.
|
9.
|
Building-Standard Fit-Up Fund_
Sections 4.13(A) and (B) are
hereby deleted in
their entirety and the following substituted therefor:
|
(A)
|
Provided No Event of Default has occurred and is continuing, and subject to the provisions of this Section 4.13 and the Work Letter attached hereto as
Exhibit B-1,
Landlord shall pay an amount equal to $1,283,688.00 (the
"Building-Standard Fit-Up
Fund")
towards Tenant's out-of-pocket construction costs (and the architectural and/or engineering fees) for the Initial Alterations. As part of the costs of its Initial Alterations, Tenant shall obtain a commercially reasonable, one-year warranty from Turner protecting Landlord and Tenant and warranting against defects in the construction and installation of the Initial Alterations (Landlord hereby acknowledging that the proposed warranty clause previously submitted to Landlord for inclusion in Tenant's contract with Turner is satisfactory to Landlord).
|
(B)
|
Furthermore, notwithstanding the foregoing, provided no Event of Default has occurred and is continuing, Landlord shall reimburse Tenant for up to $342,317.00 towards the reasonable, out-of-pocket costs incurred by Tenant for moving expenses, design costs, Landlord-approved upgrades, substitutions or excess quantities of Building-Standard items, any communications and/or related information technology or wiring costs, and/or reasonable professional/consultant fees incurred in connection with this Lease and/or the Initial Alterations. Said additional allowance is sometimes herein referred to as the
"Moving Allowance"."
|
"(D)
|
In no event shall the aggregate amount paid by Landlord under
this Lease with
respect to the Initial Alterations exceed the amounts of the Building-Standard Fit-Up
Fund plus the Moving Allowance, as provided herein. Provided Tenant complies with its obligations under this Lease, Landlord shall pay to Tenant (or to Tenant's designated payees) the Building-Standard Fit-Up Fund and the Moving Allowance as follows:
|
(a)
|
Landlord shall, during the course of construction, pay monthly progress payments towards work already performed and in place. Said progress payments shall be made within thirty (30) days following Tenant's submission to Landlord of (i) a written certificate in the form of Exhibit A attached hereto and signed by Tenant and Tenant's architect certifying that the applicable portion of the Initial Alterations to the Premises have been Substantially Completed in accordance with the approved Tenant's Plans; and (ii) accompanying, reasonably detailed invoices with reasonable supporting data itemizing the construction costs incurred in connection therewith, said invoices to be in form and substance reasonably satisfactory to Landlord.
|
(b)
|
With respect to any progress payments to be made in connection with the Moving Allowance that do not cover Initial Alterations, Landlord shall pay Tenant such progress payments for appropriate costs so incurred by Tenant within thirty (30) days following Tenant's submission to Landlord of reasonably detailed invoices with reasonable supporting data evidencing the appropriate costs incurred, along with a letter from Tenant certifying that such costs have been so properly incurred in connection with the Moving Allowance (said letter and invoices to be in form and substance reasonably satisfactory to Landlord).
|
(c)
|
Notwithstanding anything to the contrary contained herein, Landlord shall hold a final
retainage equal to one (1)% of the total Building Standard Fit-Up Fund, which shall be
paid within thirty (30) days following Tenant's submission to Landlord of (i) if not
theretofore delivered for the work in question, a written certificate in the form of
Exhibit A
attached hereto and signed by Tenant and Tenant's architect certifying that
all Initial Alterations to the Premises have been Substantially Completed (subject only
to minor punch list items, if any) in accordance with the approved Tenant's Plans; (ii)
if not theretofore delivered for the work in question, accompanying, reasonably
detailed invoices, with reasonable supporting data itemizing the construction costs
incurred in connection therewith; and (iii) evidence of full payment to and signed lien
waivers from all of the contractors and subcontractors used in connection with the
Initial Alterations. Notwithstanding anything to the contrary contained herein, Tenant
shall be responsible for obtaining a certificate of occupancy and zoning certificate of
compliance for the Initial Alterations. If not theretofore delivered, Tenant, within
sixty (60) days after Landlord's payment of any final progress payment not retained
under this subsection (c), shall deliver to Landlord a duly issued, original and final
certificate of occupancy and an accompanying original zoning certificate of compliance confirming that the Initial Alterations to the Premises have been
completed and that the Premises may be lawfully occupied for office purposes.
Should Tenant fail to obtain and deliver such certificate(s), Landlord shall have the right (but not the obligation), at Tenant's sole cost and expense, to perform any
necessary work and/or to procure same, and Tenant shall immediately pay Landlord,
as Additional Rent, Landlord's reasonable costs incurred in connection therewith.
|
(d)
|
Any balance remaining in the Building Standard Fit-up Fund or the Moving Allowance after the Initial Alterations have been Substantially Completed (and after a certificate of occupancy and lien waivers therefor have been obtained) shall be paid to Tenant in accordance with Section 4.13(C)."
|
10.
|
Tenant's Insurance.
Tenant's insurance obligations, as provided in the first sentence
of Section 9.1 of the Lease, shall commence on the Commencement Date (as opposed
to commencing on Tenant's occupancy of the Premises).
|
11.
|
Electricity Metering.
The second sentence Section 13.2 of the Lease is hereby deleted
in its entirety and the following is substituted therefor: "Tenant shall install, as part of
the Initial Alterations, the aforesaid meter or submeter as soon as is reasonably
possible after the Commencement Date; and during the period(s), if any, before such
meter or submeter is installed (or during any period(s) when same are inoperable),
Tenant's Electricity Additional Rent shall be based on a monthly rate of $5,943.00 per
month."
|
12.
|
Possession; Holdover Premium; Etc.
Since Tenant shall be performing the Initial
Alterations, and as contemplated by the above-referenced Side Letter Agreement, the
last two (2) sentences of Section 21.1 (relating to Tenant's holdover premium
reimbursement and Landlord's substantial completion of the Initial Alterations) are
hereby deleted in their entirety and are of no further force or effect. Notwithstanding
anything to the contrary contained in the Lease (as amended by this Agreement), in
the event that Landlord (through no fault of Tenant) is unable to deliver the Premises
to Tenant by January 15, 2000 for the purpose of Tenant's performance of the Initial Alterations, then Tenant's free Fixed Rent and Escalation Rent period, as described in
Section 1.3 of the Lease, shall be extended on a per diem basis for each day after January 15, 2000 that Landlord fails to so deliver the Premises to Tenant for the
purpose of Tenant's performance of the Initial Alterations.
|
13.
|
Power-washing; Fiber Optic Cabling.
Landlord's obligation to have the Building power-washed, as provided in Section 24.4(C) of the Lease, shall occur on or
promptly after the Commencement Date. If not theretofore performed, Landlord's
obligation to install fiber optic cabling, as provided in Section 24.10 of the Lease, shall occur on or before January 15, 2000.
|
14.
|
Work Letter. Exhibit "B-1"
to the Lease is hereby amended and restated as follows:
|
(a)
|
Plan Submission Date.
The Plan Submission Date in Section 1(a) is hereby amended and restated to be January 15, 2000;
|
(b)
|
Costs_
A new Section 1(b) is hereby added as follows: "(b) Except as otherwise
specifically set forth in Section 4.13 of the Lease (as amended by this Agreement)
with respect to Landlord's payment of the Building-Standard Fit-Up Fund and the
Moving Allowance, Tenant shall pay all costs and expenses (collectively, the
"Work Costs")
associated with the Initial Alterations, when and as they become
due."
|
(c)
|
Building Permit.
Tenant shall submit Tenant's Plans and shall obtain the building
permit referred to in Section 1(c), and Landlord shall diligently cooperate with
Tenant with respect thereto;
|
(d)
|
Initial Alterations.
Section 2(a) is hereby deleted in its entirety and the following
substituted therefor: "(a) Tenant shall, promptly following Landlord's receipt and
approval of Tenant's Plans, engage Turner to construct the Initial Alterations, and
subject to the terms and conditions of the Lease, Tenant shall have Turner install
the Initial Alterations in a good and workmanlike manner to conform with the approved Tenant's Plans. Tenant shall use commercially reasonable, good faith
efforts under the circumstances, to have the Initial Alterations constructed on or
before May 1, 2000, subject to causes beyond Tenant's reasonable control." Section 2(h) is hereby amended by deleting therefrom the phrase "has given
Tenant notice of Landlord's refusal to perform such work and".
|
(e)
|
Tenant Delay.
All provisions in Section 3 except the first sentence of the final
paragraph thereof are hereby deleted in their entirety and are of no further force or
effect.
|
(f)
|
Change Orders.
Section 5(b) is hereby deleted in its entirety.
|
(g)
|
Move-In.
The words "Commencement Date" in the last sentence of Section 7 are hereby deleted and the words "Tenant's Substantial Completion of the Initial Alterations and its delivery to Landlord of a certificate of occupancy and zoning compliance certificate" are hereby substituted therefor.
|
15.
|
Miscellaneous.
As hereby amended, the Lease shall continue in full force and effect, the parties hereby ratifying and confirming the Lease, as amended by this Agreement.
This Agreement, together with the Lease (and that certain Procedural and Safekeeping
Agreement dated as of July 15, 1999 amongst Landlord, Tenant and Investors Bank &
Trust Company), constitutes the full and complete agreement of the parties regarding
the subject matters set forth herein, and shall supersede any prior or contemporaneous
agreements between the parties concerning such subject matters. In the event of any conflicts or inconsistencies between the terms of the Lease, and the terms of the Lease
(as amended by this Agreement), the terms of the Lease (as amended by this
Agreement), shall govern and control in each instance. The Lease, as amended
hereby, shall not be modified or altered except by written agreement signed by
Landlord and Tenant. This Agreement shall bind and enure to benefit of Landlord and
Tenant, and their respective successors and assigns. This Agreement shall not be
binding on Landlord or Tenant, however, unless and until Landlord and Tenant, respectively, shall have executed and delivered final counterparts of this Agreement to the other. This Agreement may be executed in individual counterparts, which counterparts, when so executed and delivered, shall be deemed one and the same counterpart. This Agreement may also be executed and transmitted via facsimile machine, the parties hereby agreeing that any signature hereto transmitted via facsimile machine shall be deemed an original signature.
|
LANDLORD:
|
||
440 WHEELERS FARM ROAD, LLC
|
||
By:
|
SAP H Manager, Inc.
|
|
BY
|
||
Name: L. Thomas Osterman
|
||
Title: Vice President, duly authorized
|
||
TENANT:
|
||
THE WINTHROP CORPORATION
|
||
BY
|
||
Name: Peter M. Donovan
|
||
Title: President & CEO, duly authorized
|
||
FIXED RENT SCHEDULE
|
||||
Lease Year*
|
Premises
RSF
|
Annual Rate
|
Annual Rate
|
Monthly Rate
|
Per RSF
|
||||
1**-2
|
17,811
|
$10.85
|
$193,249.35
|
$16,104.11
|
3 ,
|
17,811
|
$11.85
|
$211,060.35
|
$17,588.36
|
4-5
|
17,811
|
$12.85
|
$228,87L35
|
$19,072.61
|
440 WHEELERS FARM ROAD, L.L.C.
|
||
Landlord
|
||
By: SAP II Manager, Inc.
|
||
Name: Tom Osterman
|
||
Title: VP
|
||
, duly authorized
|
||
and empowered
|
||
THE WINTHROP CORPORATION
|
||
Tenant
|
||
By:
/s/ Eugene J. Helm
|
||
Name: Eugene J. Helm
|
||
Title: President & COO
|
||
, duly authorized
|
||
and empowered
|
I .
|
Building Standard
Partitions:
|
Building standard partitions are constructed of 2 1/2", 25 gauge metal studs, 16" on center (o.c.), with 5/8" thick drywall on each side. The Building Standard partitions are attached to a metal runner at the ceiling and a metal runner on the floor. Gypsum board is to be taped and floated and ready to paint.
|
2.
|
Paint:
|
All Building Standard partitions are to receive two (2) coats of Building Standard paint; the first coat will be a latex primer with the second coat being a latex eggshell finish in a color to be designated by Tenant's Architect from the Building Standard color chart available from the Construction Manager.
|
3.
|
Flooring:
|
The Building Standard carpet is a Blueridge Prodigy P371, broadloom, 28 ounce high quality out and loop, direct glue down carpet offered in a choice of colors. Building Standard 1/8" x 12" x 12" vinyl composition floor may be substituted where resilient floor covering is required. (In lieu of the above Building Standard carpet, Tenant may substitute its own new, commercially reasonable carpeting selection, provided Tenant purchases and delivers same to the construction site in sufficient quantity and in a timely manner at Tenant's sole cost and expense, in which case Tenant shall receive a credit for the unused Building Standard carpet equaling $1.25 per rentable square foot of the Premises. Any delay to the construction or completion of the Initial Alterations caused by such carpeting substitution shall be deemed a Tenant Delay.)
|
4.
|
Base:
|
Resilient vinyl straight base (Burke) at carpet in Building Standard colors. Building Standard base is 2 1/2" high located on each side of Building Standard partition.
|
5,
|
Doors, Frames
and Hardware:
|
Building Standard doors are 3'-0" x 9'-O" (nominal) x 1 3/4" Algoma or Eggers wood doors with natural oak pre-finished veneer, pre-mortised for latch set hardware and cut to size. Tenants on multi-tenant floors shall be provided up to two rated Building Standard doors set in metal frames for egress and ingress into Common Areas.
Building Standard door frames are extruded aluminum RACO frames (or its equivalent) with a factory-painted finish to match Building Standard Fuller O'Brien "Whisper White" finish on perimeter drywall and column enclosures.
Building Standard hardware is a McKinney TA 714- 4 1/2" x 4 1/2" 26 D- finish hinge. Each building standard door is to have four (4) hinges and a floor mounted Ives 436B x 26D door stop. Building standard Sargent locksets Series 8200 LNE x32D finish will be used on interior as well as Tenant entry doors. Automatic door closures, Sargent 1430-EN series in silver finish, are provided at Tenant entrance doors. Keyed locksets use Sargent building master compatible prefix 63 interchangeable core cylinders.
|
Room#
|
Quantity Item Description
|
|
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
|
||
1
|
45 Stacker Chairs w/o Arms
|
|
21 folding tables
|
||
3 table
|
||
2
|
1 Main Conference Room Table
|
|
18 Leather Chair
|
||
1 Build-in Credenza
|
||
3
|
1 Credenza Mill Work
|
|
1 Desk
|
||
1 Office Chair
|
||
1 Coffee Table
|
||
1 Loveseat
|
||
4
|
6 Upholster Chairs
|
|
1 Conference Table
|
||
5
|
1 Desk
|
|
2 Guest Chairs
|
||
1 Knee-hole credenza
|
||
1 Credenza
|
||
1 Guest Table
|
||
1 Office Chair
|
||
6
|
1 Desk
|
|
1 Wood file cabinet
|
||
2 Guest Chairs
|
||
7
|
1 Conference table
|
|
4 Sync Chairs
|
||
8
|
1 Desk
|
|
1 Office Chair
|
||
Room#
|
Quantity Item Description
|
|
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
|
||
3 2 drawer fife cabinet
|
||
2 Guest Chairs
|
||
1 Wood file cabinet
|
||
9
|
1 lateral file cabinet
|
|
1 bookcase
|
||
1 Guest Chair
|
||
1 Desk
|
||
1 Office Chair
|
||
10
|
1 Desk
|
|
1 lateral file cabinet
|
||
1 bookcase
|
||
3 5 drawer lateral file cabinet
|
||
1 Office Chair
|
||
11
|
1 Desk
|
|
2 Guest Chairs
|
||
1 2 drawer lateral file cabinet
|
||
1 4 drawer vertical file cabinet
|
||
1 Office Chair
|
||
12
|
1 Desk
|
|
1 Knee-hole credenza
|
||
1 2 drawer lateral file cabinet
|
||
2 3 shelf bookcase
|
||
2 Guest Chairs
|
||
13
|
1 Desk
|
|
2 Guest Chairs
|
||
5 28" 2 drawer vertical file cabinet
|
||
1 Office Chair
|
||
14
|
1 Desk
|
|
1 5 drawer lateral file cabinet
|
Room*
|
Quantity Item Description
|
|
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
|
||
2 Guest Chairs
|
||
1 3 drawer lateral file cabinet
|
||
2 2 drawer vertical file cabinet
|
||
1 Knee-hole credenza
|
||
1 Office Chair
|
||
15
|
1 Desk
|
|
1 Credenza/bookshelf
|
||
1 2 drawer vertical file cabinet
|
||
2 Guest Chairs
|
||
1 Office Chair
|
||
16
|
1 Bookshelf
|
|
1 Guest Table
|
||
1 Knee-hole credenza
|
||
1 Desk
|
||
2 Guest Chairs
|
||
1 5 drawer lateral file cabinet
|
||
1 Office Chair
|
||
17
|
10 Conference Chair
|
|
1 Conference Table
|
||
1 Build-in Credenza
|
||
18
|
1 Desk
|
|
1 Guest Chair
|
||
1 Bookshelf
|
||
1 Credenza
|
||
1 Desk
|
||
1 Office Chair
|
||
19
|
1 Desk
|
|
4 Guest Chair
|
||
1 Guest Table
|
||
1 Wood file cabinet
|
||
1 3 drawer vertical file cabinet
|
Room#
|
Quantity Item Description
|
|
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
|
||
1 Office Chair
|
||
20
|
1 Desk
|
|
2 Guest Chair
|
||
1 Credenza
|
||
1 Office Chair
|
||
21
|
1 Conference table
|
|
4 Sync Chair w/arms
|
||
22
|
1 Desk
|
|
1 Wood file cabinet
|
||
1 Office Chair
|
||
23
|
1 Desk
|
|
1 Bookshelf
|
||
3 Guest Chairs
|
||
1 3 drawer lateral file cabinet
|
||
1 Knee-hole credenza
|
||
1 Office Chair
|
||
24
|
1 Conference table
|
|
4 Sync Chair w/arms
|
||
25
|
1 Desk
|
|
2 Guest Chairs
|
||
1 Wood file cabinets
|
||
2 2 drawer vertical file cabinet
|
||
1 Office Chair
|
||
26
|
1 Desk
|
|
1 2 shelf bookcase
|
||
3 Guest Chairs
|
||
1 Conference Table
|
Room#
|
Quantity Item Description
|
|
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
|
||
1 Knee-hole credenza
|
||
1 3 drawer lateral file cabinet
|
||
1 4 drawer vertical file cabinet
|
||
1 Office Chair
|
||
27
|
1 Desk
|
|
1 Bookcase
|
||
1 Knee-hole credenza
|
||
1 bookshelf
|
||
1 3 drawer vertical file cabinet
|
||
1 Office Chair
|
||
28
|
1 Table
|
|
3 Chair
|
||
29
|
1 Desk
|
|
1 Bookshelf
|
||
1 Guest Chair
|
||
1 4 drawer vertical fife cabinet
|
||
1 Office Chair
|
||
30
|
1 Desk
|
|
1 Guest Table
|
||
1 Credenza/bookshelf
|
||
3 Guest Chair
|
||
1 3 drawer lateral file cabinet
|
||
1 Bookcase
|
||
1 Office Chair
|
||
31
|
2 Desk
|
|
8 4 drawer lateral file cabinet
|
||
5 4 drawer vertical file cabinet
|
||
1 5 drawer lateral file cabinet
|
||
1 Table
|
Room#
|
Quantity Item Description
|
|
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
|
||
32
|
1 Desk
|
|
1 Wood file cabinet
|
||
1 2 drawer lateral file cabinet
|
||
1 Guest table
|
||
3 Guest Chair
|
||
1 Bookcase
|
||
1 Office Chair
|
||
33
|
1 Desk
|
|
2 Guest Chairs
|
||
1 4 shelf bookcase
|
||
1 Office Chair
|
||
34
|
8 Conference Chair
|
|
Conference table
|
||
1 Credenza
|
||
35
|
1 Desk
|
|
1 Guest Chair
|
||
1 Storage cabinet
|
||
1 Office Chair
|
||
36
|
1 Reception Desk
|
|
2 Lamp Table
|
||
2 Club Sofa
|
||
2 Table Lamp
|
||
37
|
8 Conference Chair
|
|
1 Conference Table
|
||
38
|
1 Desk
|
|
1 Wood file cabinet
|
||
1 Guest Table
|
||
3 Guest Chairs
|
||
1 Office Chair
|
Roomy
|
Quantity Item Description
|
|
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
|
||
39
|
1 Desk
|
|
1 2 drawer vertical file cabinet
|
||
1 3 drawer lateral file cabinet
|
||
1 Knee-hole credenza
|
||
2 Guest Chairs
|
||
1 Office Chair
|
||
40
|
None
|
|
41
|
1 4 drawer lateral file cabinet
|
|
2 3 drawer lateral file cabinet
|
||
1 End table
|
||
2 Guest Chairs
|
||
1 Guest Table
|
||
1 Knee-hole credenza
|
||
1 Desk
|
||
1 Office Chair
|
||
42T
|
None
|
|
43
|
1 Conference Table
|
|
8 Conference Chair
|
||
44
|
1 Desk
|
|
1 Knee-hole credenza
|
||
1 Guest Chair
|
||
1 4 drawer vertical file cabinet
|
||
1 5 drawer vertical file cabinet
|
||
1 2 drawer vertical file cabinet
|
||
45
|
0 NONE
|
Room#
|
Quantity Item Description
|
|
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
|
||
46
|
1 Desk
|
|
1 Guest Chair 1 Bookcase
|
||
1 4 drawer vertical file cabinet
|
||
1 Office Chair
|
||
47
|
1 4 drawer vertical file cabinet
|
|
1 2 shelf bookcase
|
||
1 4 shelf bookcase
|
||
1 7 shelf bookcase
|
||
1 10 shelf bookcase
|
||
2 Desk
|
||
2 Guest Chair
|
||
1 2 drawer lateral file cabinet
|
||
1 3 shelf bookcase
|
||
1 Office Chair
|
||
48
|
1 Conference table
|
|
4 Sync Chair w/arms
|
||
49
|
1 Conference table
|
|
4 Sync Chair w/arms
|
||
50
|
1 Desk
|
|
2 Guest Chairs
|
||
1 Office Chair
|
||
51
|
1 Desk
|
|
2 Guest Chairs
|
||
2 4 drawer lateral file cabinet
|
||
1 2 drawer lateral file cabinet
|
||
1 Credenza
|
||
1 Guest Table
|
||
1 Office Chair
|
Room#
|
Quantity Item Description
|
|
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
|
||
52
|
4 4 shelf bookcase
|
|
1 Conference table
|
||
4 Sync Chair w/arms
|
||
53
|
1 Desk
|
|
2 2 drawer vertical file cabinet
|
||
3 Guest Chair
|
||
1 Meeting table
|
||
1 Office Chair
|
||
54
|
0 NONE
|
|
55
|
1 Desk
|
|
1 Knee-hole credenza
|
||
1 Bookshelf
|
||
2 Guest Chairs
|
||
1 Guest Table
|
||
1 2 drawer lateral file cabinet
|
||
1 Office Chair
|
||
56
|
1 Desk/Meeting Table
|
|
1 Chair
|
||
57
|
None
|
|
58
|
2 Lamp Table (small)
|
|
4 Lamp Table (large)
|
||
4 Campus Sofa
|
||
2 Patrician Chair
|
||
1 Sofa Table
|
||
6 Table Lamp
|
||
59
|
None
|
Room#
|
Quantity Rem Description
|
|
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
|
||
60
|
20 4
drawer vertical file cabinet
|
|
61
|
None
|
|
62
|
None
|
|
63T
|
1 Desk
|
|
2 4 drawer vertical file cabinet
|
||
1 Office Chair
|
||
64T
|
1 Desk
|
|
2 Guest Chairs
|
||
2 2 drawer lateral file cabinet
|
||
1 3 drawer lateral file cabinet
|
||
Office Chair
|
||
65T
|
None
|
|
66T
|
1 Desk
|
|
2 2 drawer vertical file cabinet
|
||
1 3 drawer lateral file cabinet
|
||
1 Office Chair
|
||
67
|
1 Desk
|
|
1 Conference table
|
||
68
|
None
|
|
"T" Note
T.F.
|
||
145 Workstation
|
Room*
|
Quantity Item Description
|
|
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
|
||
130 Workstation chairs
|
||
10 Workstation Guest Chairs
|
(a)
|
personnel compensation costs including benefits;
|
(b)
|
services, supplies and utilized space;
|
(c)
|
general and administrative costs;
|
(d)
|
depreciation costs;
|
(e)
|
equipment maintenance costs;
|
(f)
|
legal services costs; and
|
(g)
|
library and database costs.
|
If to Primark
|
1000 Winter Street
|
|
Suite 4300
|
||
Waltham, MA 02451
|
||
ATTN: Joseph E. Kasputys, President
|
If to DI or DII |
5161 River Road
|
|
Bethesda, MD 20816
|
||
ATTN: Steven Schneider, President
|
||
If to TWC
|
1000 Lafayette Boulevard
|
|
Bridgeport, CT 06443
|
||
Attn: Peter M. Donovan, President
|
|
1.
|
The effective date of this Amendment shall be as of the date hereof.
|
|
2.
|
The phrase "Expiration Date" is hereby amended so that same shall mean
"November 30, 2013".
|
|
3.
|
The Fixed Rent for the period between December 1, 2008 through November
30, 2013 shall be as follows:
|
Lease Year
|
Premises RSF
|
Annual Rate/RSF
|
Annual Fixed
Rent
|
Monthly Fixed
Rent
|
12/1/08-11/30/09
|
17,811
|
$12.00
|
$213,732.00
|
$17,811.00
|
12/1/09-11/30/10
|
17,811
|
$12.00
|
$213,732.00
|
$17,811.00
|
12/1/10-11/30/11
|
17,811
|
$12.00
|
$213,732.00
|
$17,811.00
|
12/1/11-11/30/12
|
17,811
|
$13.00
|
$231,543.00
|
$19,295.25
|
12/1/12-11/30/13
|
17,811
|
$13.00
|
$231,543.00
|
$19,295.25
|
|
4.
|
Upon the effective date hereof, Tenant may perform improvements to the Premises. As an inducement to Tenant to perform such improvements, Landlord shall pay Tenant One Hundred Six Thousand Eight Hundred Sixty Six and No/00 ($106,866.00) Dollars (the "Credit Amount") by December 1, 2008.
|
|
5.
|
To the extent Tenant performs improvements to the Premises, Landlord shall, upon Tenant's completion thereof, but not before Tenant's submission to Landlord of sufficient proof of the actual construction or completion, as the case may be, of the improvements claimed by Tenant, the lien-free completion thereof and the obtaining of all necessary, required, and/or appropriate certificates, consents, or other approvals required to be issued by any governmental and/or quasi-governmental entity, reimburse Tenant for the amount of the sums actually expended for such improvements. For the avoidance of doubt, repairing the HVAC system, removing existing demising walls, erecting new demising walls, painting the walls, cleaning, repairing or replacing the carpet or other floor coverings within the Demised Premises and the purchase and external installation of a generator serving the Demised Premises shall be eligible for reimbursement from Landlord pursuant to this Section. However, in no event shall such reimbursement exceed Eighty Nine Thousand Fifty Five and No/00 ($89,055.00) Dollars (the "Improvement Reimbursement Amount"). To the extent Tenant elects not to undertake such capital improvements, Tenant shall not be entitled to any payment from Landlord or any reduction in Base Rent on account of the unused Improvement Reimbursement Amount. Notwithstanding the foregoing, in the event that the total costs of such improvements actually paid by Tenant is less than the Improvement Reimbursement Amount, and upon written notice by Tenant to Landlord that it shall not undertake any further capital improvements, Tenant may instruct Landlord to apply any unused portion of the Improvement Reimbursement Amount towards a reduction in Base Rent which shall be pro rated equally over the remaining term of the Lease, however in no event shall such application to a reduction in Base Rent exceed Thirty Thousand and No/00 ($30,000) Dollars. Nothing contained herein shall relieve Tenant of its obligations to fully comply with all of the provisions of the Lease, including but not limited to, Articles 4, 5 and 6 thereof.
|
|
6.
|
Tenant covenants, warrants and represents that no broker was instrumental in consummating this Amendment and no conversations or negotiations were had with any broker authorized by Tenant to represent it concerning this Amendment. Tenant agrees to indemnify, defend, and hold and save Landlord harmless against any and all liability from any claims of any broker or finder who claims to have dealt with Tenant (including, without limitation, attorneys' fees and costs incurred in connection with the defense of any such claims). Based upon such covenant, warranty and representation, Landlord has agreed to enter into this Amendment with Tenant.
|
|
7.
|
Except as modified and amended hereby, the Lease shall remain in full force
and effect and the terms and provisions thereof are hereby ratified and confirmed.
|
|
8.
|
This Amendment shall not be binding upon Landlord unless and until same be
approved by the holder of the mortgage encumbering 440 Wheelers Farms Road, Milford, Connecticut.
|
|
9.
|
This Amendment shall be binding upon and inure to the benefit of the parties
hereto and their respective heirs, representatives, administrators, successors and assigns.
|
|
10.
|
This Amendment may be executed in counterparts, each of which shall be
deemed an original, but all of which shall constitute one and the same instrument.
|
STATE OF NEW YORK
|
)
|
) ss.:
|
|
COUNTY OF KINGS
|
)
|
|
|
Maroussia D. Dimitrov
Notary Public, State
of New York
No. 01D16031950
Qualified in Kings
County
Commission Expires 10/12/2009
|
HELEN B. IWASCZYSZYN
NOTARY PUBLIC
My Commission Expires Aug. 31, 2010
|
Name:
Notary Public/Commissioner of
the Superior Court
|
The Winthrop Corporation
|
Merritt Acquisitions, LLC
|
|
(successor in interest to 440 Wheelers Farm Road LLC)
|
||
By:
|
||
Title:
|
1.
|
Provision and Distribution of Data
|
1.1.
|
The Contributor grants TR, and the TR Group, a non-exclusive, worldwide, perpetual license to receive, store, copy, display, license, and distribute the Contributor’s research described in Exhibit A (“Data”), to TR clients and to third-party data providers for distribution to their clients (collectively “Recipients”) in any format and through any distribution mechanism so long as the Contributor’s Research Report is provided in its entirety. TR Group means collectively (i) any entity that directly or indirectly Controls, is Controlled by, or is under common Control with TR, or (ii) Thomson Reuters Corporation, Thomson Reuters PLC and any of their parent entities or subsidiaries. Control means more than fifty percent (50%) equity voting interest or the sole power to direct or cause the direction of the management or policies of the entity, whether through the ability to exercise voting power, by contract or otherwise. For avoidance of doubt, Contributor may deliver the Data to any third party vendor with no restrictions.
|
1.2.
|
The Contributor will provide the Data to TR in a timely manner, on a mutually agreeable schedule. The Contributor shall provide the Data in a form and format defined by TR, so long as such format is adoptable by Contributor, from time to time.
|
1.3
|
TR in its discretion, will determine the terms and conditions upon which it distributes the Data to the Recipients. TR is under no obligation to distribute Data to any entity that has not executed or breaches a TR subscriber agreement. TR reserves the right to exclude Data from its products in its reasonable discretion.
|
2.
|
TR Software and Service (Applicable Only if TR Software is Provided)
|
2.1.
|
TR hereby grants to the Contributor for the term of this Agreement a non-exclusive, royalty free and non-transferable license to use the TR software or internet based access, including documentation and other proprietary information, for contribution of the Data to TR and/or for entitlement of Recipients to receive the Data (the “TR Software”). The TR Software may be used only at the Contributor’s site designated in writing and may not be transferred without the prior written consent of TR. The Contributor shall ensure that the TR Software and/or its data output is not used to transmit Data to any third party without the express written permission of TR. The TR Software provided under this Agreement shall remain the sole property of TR. The Contributor shall not modify, decompile, or reverse engineer the TR Software.
|
2.2.
|
TR hereby grants to the Contributor, for the term of this Agreement, a non-exclusive, non transferable license to use the TR Software, and any successor software, solely to permit the Contributor’s internal users in the research department to (i) view the Data contributed by the Contributor to TR solely as displayed in the TR services for such users’ internal use only and not for any commercial purposes, and (ii) verify the quality of the Data submitted by the Contributor to TR and to correct errors in the Data.
|
3.
|
Representations, Covenants and Warranties; Disclaimer
|
3.1.
|
TR warrants that (i) it has the right to grant to the Contributor the rights granted herein and (ii) to the best of its knowledge the Contributor’s use of the TR Software in accordance with the terms of this Agreement does not and will not infringe upon the intellectual property rights of any third party.
|
3.2.
|
Attached as Exhibit B is a questionnaire completed by the Contributor. The Contributor represents and warrants that the information contained in such questionnaire is complete and accurate, and the Contributor covenants to provide timely updates regarding any changes to the information contained therein, including its business practices regarding sponsored research. TR may, from time to time, solicit similar additional information from the Contributor, and the Contributor covenants to provide such information as reasonably requested by TR. the Contributor further agrees that such additional information shall thereafter be included in Exhibit B.
|
3.3.
|
The Contributor warrants that (i) it owns and/or has the right, and is permitted under applicable laws and regulations to distribute the Data it contributes to TR and to grant to TR the rights granted herein; and (ii) to the best of its knowledge TR’s use and distribution of the Data in accordance with the terms of this Agreement does not and will not infringe upon the intellectual property rights of any third party. The Contributor represents, warrants and covenants that as between TR and the Contributor it is and shall be solely responsible for the Data as such Data is received by TR from Contributor.
|
3.4.
|
Each of TR and the Contributor warrant that for the term of the Agreement it will comply with all laws and other governmental, statutory or regulatory requirements which may from time to time be applicable (i) in the case of TR, to the use and distribution of the Data and (ii) in the case of the Contributor, to the creation, provision and distribution of the Data, each as contemplated by the Agreement.
|
3.5.
|
OTHER THAN THE WARRANTIES EXPRESSLY STATED ABOVE, THERE ARE NO EXPRESS OR IMPLIED WARRANTIES RELATING TO THE PRODUCTS OR SERVICES COVERED BY THIS AGREEMENT, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. TR SOFTWARE IS PROVIDED “AS-IS.” TR MAKES NO WARRANTY OR REPRESENTATION THAT ITS OPERATION SHALL BE UNINTERRUPTED OR ERROR FREE AND SHALL HAVE NO LIABILITY ARISING FROM INTERRUPTIONS IN OR ERRORS IN THE OPERATION OF THE TR SOFTWARE. TR MAKES NO WARRANTY REGARDING AND SHALL HAVE NO LIABILITY ARISING FROM THE DISPLAY OR DISTRIBUTION OF DATA, THE ERRONEOUS DELIVERY OF DATA OR INACCURACY, INVALIDITY, OR INCOMPLETENESS OF DATA.
|
4.
|
Term and Termination
|
4.1.
|
This Agreement shall commence upon the Effective Date and shall continue for an initial term of one (1) year. Thereafter, this Agreement shall renew for one year terms. After the initial term, either party may terminate this Agreement for any reason by providing ninety (90) days’ written notice.
|
4.2.
|
Either party may, by giving at least thirty (30) days' prior written notice to the other, terminate the Agreement if the other commits a material breach of this Agreement and fails to remedy such breach within such thirty (30) day period. Contributor shall have the right, upon thirty (30) days’ notice, to terminate this Agreement and cease providing the Data, in the event that the Data provided by Contributor becomes subject to any third party restriction or claim that would prohibit, limit or restrict the use thereof.
|
4.3.
|
Sections 1.1, 1.3, 3, 4.3, and 5 through 8 shall survive the expiration or termination of this Agreement.
|
5.
|
Indemnification
|
5.1.
|
TR, at its expense, will indemnify, defend and hold harmless the Contributor and its affiliates and their officers, directors, employees and representatives from all liabilities, costs, losses, damages and expenses (including reasonable attorneys’ fees) arising out of or relating to any breach of the representations, warranties and covenants contained in Article 3.
|
5.2.
|
The Contributor, at its expense, will indemnify, defend and hold harmless TR and its affiliates and their officers, directors, employees and representatives from all liabilities, costs, losses, damages and expenses (including reasonable attorneys’ fees) arising out of or relating to any breach of the representations, warranties and covenants contained in Article 3.
|
5.3.
|
The party being indemnified (the “Indemnified Party”) shall give the party providing indemnification (the “Indemnifying Party”) (i) prompt written notice of the claim; (ii) the right to control and direct the defense and settlement of the claim; and (iii) reasonable assistance and information. The Indemnifying Party shall not enter into any settlement or consent to any order that could adversely affect the Indemnified Party without that party’s consent, which shall not be unreasonably withheld.
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6.
|
Limitation of Liability
|
6.1.
|
Neither the TR Group nor the Contributor nor their respective affiliates will be liable in contract or negligence or otherwise for indirect, consequential, special, exemplary or punitive damages, including loss of profits, business, reputation or anticipated savings or any other indirect losses, however such losses may arise, and even if TR or the
Contributor or an affiliate of either of them (as applicable) has been advised of the possibility of such losses.
|
6.2.
|
The aggregate amount of TR's and the Contributor’s liability which may arise out of or in connection with the Agreement, whether in contract or negligence or otherwise, shall be limited to $10,000.
|
6.3.
|
No limitation or exclusion of a party’s liability shall apply to (a) a party’s gross negligence or willful misconduct, (b) indemnification obligations or (c) breach of confidentiality.
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7.
|
Confidential Information
|
7.1.
|
In the parties’ relationship under this Agreement, either party may receive or have access to Confidential Information (as defined below) of the other. Each party shall safeguard the confidential nature of the other’s Confidential Information as it would its own Confidential Information, using at least reasonable care. Neither party may use, copy, or disclose any Confidential Information of the other, unless (i) necessary to perform its obligations under this Agreement or (ii) required by law or court order. "Confidential Information" means any information obtained under or in connection with this Agreement which is marked as confidential or which a party should generally recognize or ought reasonably to be known as the other party’s confidential information. The Contributor and TR will not disclose the other party’s Confidential Information to any third party without the prior written consent of such other party, except to any person having a legal right or duty to obtain the Confidential Information or to any professional adviser or other third party to whom it is essential that the Confidential Information is disclosed in or for the purpose of any legal proceedings or professional services involving either party, or performance of the Agreement.
|
7.2.
|
Confidential Information does not include information that (a) was rightfully in possession of or known to the receiving party without any obligation of confidentiality prior to receiving it from the disclosing party; (b) is, or subsequently becomes, legally and publicly available without breach of this Agreement; (c) is rightfully obtained by the receiving party from a source other than the disclosing party without any obligation of confidentiality; (d) is independently developed by the party receiving it; or (e) is disclosed by the receiving party under a valid order created by a court or government agency. For the avoidance of doubt, neither the Data nor any information provided in the contributor questionnaire is Confidential Information.
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8.
|
Miscellaneous
|
8.1.
|
Except as otherwise set forth herein, Contributor may upon written notice to TR, assign this Agreement or any rights granted hereunder, in whole or part, to an affiliate or to a successor to all or substantially all of its assets or business related to this Agreement in each case without the consent of TR. Except as otherwise set forth herein TR may upon written notice to Contributor, assign this Agreement or any rights granted hereunder, in whole or part, to an affiliate, in connection with its reorganization, the sale of a division, product or service of TR or any other business transaction of a similar nature in each case without the consent of the Contributor.
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8.2.
|
All notices sent under this Agreement must be in writing and delivered personally or by email or fax or sent by first class post (and airmail if overseas) to the address set forth below, unless such address is changed by notice in compliance with this Section 8.2. Unless there is evidence that it was received earlier, a notice is deemed given (i) if delivered personally or by email or fax, when left at the address referred to above, (ii) if sent by post to an address within the country of postage, two business days after posting it and (iii) if sent by post to an address outside the country of postage, six business days after posting it.
|
8.3.
|
This Agreement, and the Exhibits and Addenda attached hereto, constitute the entire agreement of the parties concerning its subject matter and supersedes all prior agreements with respect to the subject matter hereof. This Agreement may not be amended except by a writing signed by an authorized representative of each of the parties.
|
8.4.
|
This Agreement and its provisions only control the relationship and services contemplated herein. All prior Agreements between Wright Investors’ Service and any member of the TR Group regarding other relationships and/or services shall be governed by their respective agreements.
|
8.5.
|
Neither party is an employee, agent, co-venturer, or legal representative of the other for any purpose. The parties are independent contractors.
|
8.6.
|
This Agreement will be construed in accordance with and governed by the law of the State of New York without regard to its conflict of laws provisions. Both parties consent to the non-exclusive jurisdiction of any state or federal court sitting in the State of New York, and of any court to which an appeal therefrom may be taken. Each party hereby irrevocably waives the right to a trial by jury in any action or proceeding arising out of this Agreement.
|
8.7.
|
No waiver of any of the terms of this Agreement will be valid unless in writing and designated as such. Any forbearance or delay on the part of either party in enforcing any of its rights under this Agreement will not be construed as a waiver of such right to enforce same for such occurrence or any other occurrence.
|
8.8.
|
This Agreement may be executed in one or more counterparts, each of which when executed shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement.
|
8.9.
|
Neither party shall use the other party’s name or mark in any advertising, written sales promotion, press releases and/or other publicity without the other party’s prior written consent which may not be unreasonably withheld or delayed. Notwithstanding the foregoing, during the term of this Agreement TR may indicate that Contributor’s data is included in TR services in sales promotion materials and customer conversations in a form or manner approved by Contributor.
|
B.
|
Research will be displayed under the following names: Wright Investors’ Service
|
|
Investment Research Collection Royalties
. TR shall pay the Contributor the following royalties with respect to distribution of the Data via the Investment Research collection, (also known as Investext or similar services) which is being sold either on a subscription basis or a per page basis set by TR:
|
|
a)
|
[xxx] of Net Vendor Revenues (as hereinafter defined) from TR’s third party distributors (“Third Party Vendors”), or
|
|
b)
|
[xxx] of Net TR Revenues (as hereinafter defined) received by TR from its own proprietary distribution system(s) during the term of the Agreement in accordance with the following terms:
|
|
i)
|
“Net Vendor Revenues” means the amounts actually received by TR from those Third Party Vendors that host the Data supplied by TR to such vendors in payment for online/offline display or printout of the Data, after deduction for delivery, collection fees, communications, and storage charges, if any.
|
|
ii)
|
“Net TR Revenues” means all revenues actually received by TR with respect to the Data (x) from its own proprietary distribution system(s) for the online/offline display or printout of the Data, minus delivery, collection fees, communications, and storage charges, and (y) from printed reports, or other products and services derived from the databases containing the Data.
|
1.
|
TR shall not release to clients not approved on the Recipient list any of the Data earlier than [xxx] days from the date the Data has been released for publication by the Contributor. If no such Recipient list is provided by Contributor, TR shall not delay the release of Data.
|
2.
|
The Contributor shall, in its sole discretion, retain editorial control at all times over the selection and dispatch of its Data to TR for inclusion in aftermarket services and the Contributor may elect, to withhold certain Data or modify it prior to inclusion in aftermarket services.
|
3.
|
TR will provide to the Contributor, on a quarterly basis and within 90 (ninety) days of the end of each calendar quarter, a detailed royalty report that includes a listing and compilation for such period of Net Vendor Revenues and Net TR Revenues, accompanied by payment in the amount of the royalties that are due to the Contributor.
|
4.
|
In the event of the expiration or termination of the Agreement, TR shall have the right to continue marketing the Data on the date of such expiration or termination. TR shall continue to pay the Contributor the royalty rate stated above on Net TR Revenue and Net Vendor Revenue.
|
Date:09.16.09
|
||
Company Name:
|
Wright Investors’
Service
|
|
Director of Research:
|
Amit Khandwala
|
|
Phone:
|
203.783.4350
|
|
Email:
|
akhandwala@wisi.com
|
|
Address:
|
440 Wheelers Farms Road
|
|
Milford, CT 06461
|
||
Are you a broker/dealer?
|
No
|
|
Do you distribute Research to the Institutional Market?
|
Yes
|
|
How long has your company been in business?
|
49 Years
|
|
How long has your Research Department been in operation?
|
49 Years
|
|
How long has Director of Research been an analyst?
|
23 Years
|
|
Number of analysts:
|
n/a
|
|
Number of companies under coverage:
|
Approximately
32,000
|
|
Specialty or Generalists (Focus of Firm):
Small Cap/ Mid Cap/ Large Cap
Regional
Industry/ies Covered
|
Yes
|
|
Geographic Coverage: Global
|
||
Do you distribute Research through other vendors?
|
Yes
|
|
Please Forward:
Research Reports (3) (
please e-mail a PDF copy)
Marketing Collateral
Website Address
|
Enclosed
n/a
www.wrightinvestors.com
|
-
Provide 3 Company Investor Relations
and
3 Institutional Client
s Contacts: - (6 total) Please include – Full Name, Title, e-mail, Company, brief description of how you have worked together
|
___________
|
|
Recommendation Scale:
|
n/a_________
|
NORMALISED TEXT
|
BROKER TEXT
|
1.STRONG BUY
|
|
2.BUY
|
|
3.HOLD
|
|
4.UNDERPERFORM
|
|
5.SELL
|
Will you/your firm provide: (please indicate all that apply)
|
||
Earnings Estimates/Related Data:
|
No
|
|
Morning Meeting Notes:
|
No
|
|
Research Reports:
|
Yes
|
|
Additional comments about your firm:
|
_____
|
Mergers& Acquisitions
|
_____
|
Equity Underwriting
|
_____
|
Fixed Income Underwriting
|
_____
|
Corporate Finance
|
_____
|
Equity Syndication
|
_____
|
Fixed Income Syndication
|
_____
|
Other: ___________
|
______
|
Affiliated companies
|
______
|
Associated
companies
|
______
|
Major investors/owners
|
Does your firm provide brokerage services?
|
NO
____
|
||||||
Do any of the following provide brokerage services?
|
NO
____
|
||||||
______
|
Affiliated companies
|
______
|
Associated
companies
|
______
|
Major investors/owners
|
Are these brokerage services intended solely to provide soft dollar services to support research billing?
|
YES ___ NO ___
|
|
Does your firm manage money?
|
YES ___ NO ___
|
|
Do you allow corporations to sponsor any research coverage ("paid-for" research)
|
YES ___ NO ___
|
|
Does your firm make specific company or stock recommendations (Buy/Sell/Hold, for example)?
|
YES ___ NO ___
|
If ‘no’, does your firm create other quantitative or numeric rankings of companies intended to help predict investment performance?
|
YES ___ NO ___
|
|
Does your firm make specific company financial projections (EPS or sales forecasts, etc.)?
|
YES ___ NO ___
|
|
Does your firm set price targets?
|
YES ___ NO ___
|