Re: Term of Extension of Lease at 457 Madison

thnks

--- DKIESQ@aol.com wrote:

As I initially said, the term of the lease extension
for the fourth floor at
457 Madison is for two years ending July 31, 2007,
subject to possible early
termination if our landlord gives us at least 6
months prior notice that the
landlord's superior lease with the Palace will
terminate before July 31,
2007, which is what you may have been thinking
about.

What Gloria told me before the break was that there
still was no agreement
signed between our landlord and the Palace. Gloria
told me that even though
our landlord was initially contemplating an early
termination of January 31,
2007 (based on our landlord needing as part of their
deal with the Palace 18
month's notice to find alternative space once the
deal was signed), because the
agreement between our landlord and the Palace was
still not signed, it
seemed likely that we were going to be able to
remain in the space for the full
two years of our extension term, or possibly even
more time.

To give you a current update, I tracked down Gloria
tonight to find out if
there were any new developments since Gloria and I
last spoke. Gloria told me
tonight that the parties have still not signed an
agreement, but the
document that is now being circulated for comment
and negotiation provides that the
parties will vacate by March 31, 2007.

Gloria said that obviously nothing is certain, so if
the March 31, 2007 date
is extended further, we would also benefit from the
extension.

Gloria also told me that the Palace is going to
request that all tenants
sign some form of acknowledgement document in favor
of the Palace which would
allow us to stay until whatever extension
termination date is ultimately agreed
upon between our landlord and the Palace. However,
Gloria believes that
this acknowledgement document will also allow us to
terminate the lease
extension early should we find space and want to
move out before the extension
termination date. Gloria said that I [Darren] "know
more about these legal issues"
than Gloria does, so I would have to read whatever
document is circulated to
determine what effect it may have on the extension.
Gloria likely said this
to cover herself in case she is wrong and no such
discretionary right is
given in exchange for signing the acknowledgement
document.

In summary, then, based on my conversation with
Gloria this evening, (a) we
likely will not have to vacate earlier than by March
31, 2007, (b) we will
likely be required to sign some kind of document
with the Palace in which we
acknowledge the extension termination date (whether
March 31, 2007 or some other
date), and agree to vacate by that date, and (c) in
exchange for signing
that document, we will possibly be given the right,
at our discretion, to
terminate our lease early should we find space
before the termination date and want
to move out early.

It would be prudent to exercise caution in relying
on what Gloria says until
we see a signed agreement between our landlord and
the Palace and find out
what sort of document the Palace wants us to sign as
part of that deal. The
story about when we will have to vacate has changed
four times since this past
July and there is still no signed deal between our
landlord and the Palace.

Darren

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