Document:

Exhibit
10.27

 

STANDARD FORM OF OFFICE LEASE

 

1.             SUMMARY
OF BASIC LEASE PROVISIONS, DEFINITIONS AND TABLE OF CONTENTS

 

BASIC DEFINITIONS

 

1.1   The following are the basic
definitions and provisions of this Lease and are subject to all the terms and
provisions of this Lease or any amendments or exhibits hereto:

 

	
  (a)

  	
  Date
  of Lease:

  	
   

  	
  July 14th,
  2004

  
	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
  Landlord:

  	
   

  	
  PW/MS
  OP SUB I, LLC,

  a Delaware limited liability company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Landlord’s
  Address:

  	
   

  	
  c/o
  PW/MS Management Co., Inc.

  The Gale Company, L.L.C.

  Park Avenue at Morris County

  100 Campus Drive, Suite 200

  Florham Park, New Jersey 07932

  
	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
  Tenant:

  	
   

  	
  INFORMATION
  STRATEGIES GROUP, INC.,

  a New Jersey corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Tenant’s
  Address:

  	
   

  	
  20
  Waterview Boulevard

  
	
   

  	
   

  	
   

  	
  Parsippany-Troy
  Hills, New Jersey 07054

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Tenant’s
  Tax Identification Number: 22-3361801

  
	
   

  	
   

  
	
  (d)

  	
  Building:

  	
   

  	
  20
  Waterview Boulevard

  Parsippany-Troy
  Hills, New Jersey

  
	
   

  	
   

  	
   

  	
   

  
	
  (e)

  	
  Demised
  Premises:

  	
   

  	
  a
  portion of the third (3rd) floor in the Building, as shown on Exhibit A
  attached and made a part hereof

  
	
   

  	
   

  
	
  (f)

  	
  Rentable
  Size of Building:         deemed
  as 226,145 square feet

  
	
   

  	
   

  
	
  (g)

  	
  Rentable
  Size of Demised Premises:  deemed as 10,497 square feet

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (h)

  	
  Tenant’s
  Occupancy Percentage:  deemed
  as 4.64%

  
											

 

	
  (i)

  	
  Base Taxes:

  	
   

  	
  the
  amount determined by multiplying (a) the real estate tax rate in effect
  on January 1, 2004 and (b) the assessed valuation of the Real
  Estate for the calendar year ending December 31, 2004, as such assessed
  valuation is or may be ultimately determined by final administrative or
  judicial proceeding, or by abatement by an appropriate taxing authority

  

 

	
  (j)

  	
  First Operating Year:

  	
   

  	
  the
  calendar year ending December 31, 2004

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  First
  Tax Year:  the
  calendar year ending December 31, 2004

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (k)

  	
  Term
  of Lease:  5 years
  and 2 months

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (l)

  	
  Estimated
  Commencement Date:  September 30,
  2004

  
	
   

  	
   

  
	
  (m)

  	
  Minimum
  Rent:

  
									

 

	
  Lease Months

  	
   

  	
  Annual

  	
   

  	
  Monthly

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1-24

  	
   

  	
  $

  	
  238,386.84

  	
   

  	
  $

  	
  19,865.57

  	
   

  
	
  25-62

  	
   

  	
  $

  	
  256,756.38

  	
   

  	
  $

  	
  21,396.39

  	
   

  

 

(n)           Prepayment of Rent:           $19,865.57

 

1

 

(o)           Security:       $42,792.78 in the form of
cash or Letter of Credit

 

(p)           Permitted  Use:     first-class
general, executive and administrative office use only and for   no other purpose

 

(q)           Allotted  Parking:  37 spaces of
which 5 spaces will be Designated Spaces

 

(r)            Brokers:       Williams Real Estate of New
Jersey, LLC

119 Cherry Hill Road 

Suite 110

Parsippany, New Jersey 07054 

Attention:  Douglas Rowe

Vice President

 

-
and -

 

The Gale Real Estate Advisors Company, L.L.C.

Park Avenue at Morris County 

100 Campus Drive, Suite 200 

Florham Park, New Jersey 07932 

Attention:      Mark Yeager 

        President

 

(s)           Rental  Credit:  $39,731.14

 

(t)            Renewal  Options:  two (2),
five (5) year renewal options

 

(u)           Tenant  Drawing Date:  Date of
Lease

 

(v)           Construction Credit:  $188,946.00

 

1.2           Additional
Definitions.  For the
purposes of this Lease, the following terms shall have the meanings set forth
below:

 

Accelerated Rent shall have the meaning given to it in Section 35.1(c) hereof.

 

Adjusted Minimum Rent shall mean the Minimum Rent
as increased in accordance with this Lease to reflect any increase in Taxes and
Operating Costs.

 

Affiliated Property shall have the meaning
given to it in Section 16.5 hereof.

 

Agent(s) shall mean any agent, consultant, contractor
or subcontractor hired by or reporting to Tenant or its employee, and any
employee of any such entity.

 

Appraiser(s) shall have the meaning given
to it in Section 5l.3(c).

 

Article(s) shall refer to the major subdivisions of this
Lease listed in Section 1.3 hereof.

 

Assignee(s) or assignee(s) shall
have the meaning given to it in Section 16.9 hereof.

 

Assignment or assignment shall
have the meaning given to it in Section 16.9 hereof.

 

Assignor or assignor shall
have the meaning given to it in Section 16.9 hereof.

 

2

 

Bankruptcy Code shall have the meaning given to it in Section 39.1
hereof.

 

Billing Date shall have the meaning given to it in Section 6.2(a) hereof.

 

Building Lessor shall have the meaning given it in Section 3.4
hereof.

 

Cleaning Service Rider shall mean Exhibit: C and
all amendments thereto.

 

Commencement Date shall have the meaning given to it in Section 3.1
hereof.

 

Commencement Date Notice shall have the meaning
given to it in Section 3.4 hereof.

 

Controlling Interest shall have the meaning
given to it in Section 16.9(d) hereof.

 

Cure Period shall have the meaning given to it in Section 34.2
hereof.

 

Default shall have the meaning given to it in Section 34.1
hereof.

 

Environmental shall mean anything affecting the physical
health, safety or condition of human beings, wildlife, or natural resources.

 

Environmental Authority shall have the meaning
given to it in Section 15.2 hereof.

 

Estimated Minimum Rent shall have the meaning given
to it in Section 51.3(d) hereof.

 

Event of Default shall have the meaning given to it in Section 34.2
hereof.

 

Expiration Date shall have the meaning given to it in Section 3.4
hereof.

 

Governmental Authority(ies) shall mean any governmental
or quasi-governmental legislative, executive, judicial, regulative or
independent body, department, office, agency, bureau or similar entity or any
agent, officer or representative thereof.

 

HVAC shall mean heating, ventilation and air
conditioning.

 

Improvements shall mean the Building and other improvements on
the Land.

 

Initial Term shall have the meaning given to it in Section 3.4
hereof.

 

Interest shall have the meaning given to it in Section 34.3
hereof.

 

Land shall mean the land described in Exhibit B.

 

Land Lessor shall have the meaning given it in Section 29.3
hereof.

 

Landlord shall have the meaning given, to it in Section 29.2
hereof.

 

3

 

Landlord’s Determination shall have the meaning
given to it in Section 6.2 (e) hereof.

 

Landlord’s Determination Notice shall have the meaning
given to it in Section 51.3(a) hereof.

 

Landlord’s Recapture Notice shall have the meaning
given to it in Section 16.4 hereof.

 

Landlord’s Recapture Right shall have the meaning
given to it in Section 16.4 hereof.

 

Landlord’s Work shall have the meaning given to it in Section 23.1
hereof.

 

Law(s) shall mean any statute, ordinance, order, code, rule or
regulation of a Governmental Authority now or hereafter in effect as applicable
under the circumstances.

 

Legal Holiday(s) shall have the meaning given
to it in Exhibit D.

 

Letter of Credit shall have the meaning given to it in Section 8.7
hereof.

 

License shall have the meaning given to it in Section 10.2
hereof.

 

Managing Agent shall mean the managing agent named on the
signature page of this Lease, or such other person or entity as Landlord
may designate by written notice from Landlord to Tenant, subject to Article 45
hereof.

 

Market Rent shall have the meaning given to it in Section 51.4(b) hereof.

 

Monument shall have the meaning given to it in Section 59.1
hereof.

 

Operating Costs shall have the meaning given to it in Section 6.2
(b) hereof.

 

Operating Statement shall have the meaning
given to it in Section 6.2(a) hereof.

 

Operating Year shall mean any calendar year (or portion
thereof) during the Term of Lease after the First Operating Year.

 

Parking Area(s) shall have the meaning given
to it in Section 10.2 hereof.

 

Partner(s) shall have the meaning given it in Section 42.1
hereof.

 

Partnership Tenant shall have the meaning
given to it in Section 42.1 hereof.

 

Pass-Through Capital Improvements shall have the meaning
given to it in Section 6.2(f) hereof.

 

Profit shall have the meaning given to it in Section 16.6
hereof.

 

Real Estate shall mean, collectively, the Land and the Building
and other improvements thereon.

 

Renewal Option(s) shall have the meaning given
to it in Section 51.1 hereof.

 

4

 

Renewal Term shall have the meaning given to it in Section 51.1
hereof.

 

Rent Commencement Data shall have the meaning
given to it in Section 3.5 hereof.

 

Rules and Regulations shall mean the rules and
regulations set forth in Exhibit E,
as same may be amended from time to time as provided herein.

 

Section(s) shall refer to subdivisions of each Article.

 

Service Charge shall have the meaning given to it in Section 34.3
hereof.

 

State shall mean the state of the United States in which
the Land is located.

 

Sublease shall have the meanings given to it in Sections
16.2 and 16.3 hereof.

 

Subleasing shall have the meaning given to it in Section 16.3
hereof.

 

Sublessee(s) shall have the meaning given
to it in Section 16.2 hereof.

 

Substantial Completion shall have the meaning
given to it in Section 3.2 hereof.

 

Tax Statement shall have the meaning given to it in Section 6.1(c) hereof.

 

Tax Year shall mean any calendar year or portion thereof
during the Term of Lease after the First Tax Year.

 

Taxes shall have the meaning given to it in Section 6.1(b) hereof.

 

Tenant’s Notice of Disagreement shall have the meaning
given to it in Section 51.3 (a) hereof.

 

Tenant’s Renewal Notice shall have the meaning
given to it in Section 51.2(a) hereof.

 

Tenant’s Share of Operating Costs shall have the meaning
given to it in Section 6.2(a) hereof.

 

Tenant’s Share of Taxes shall have the meaning
given to it in Section 6.1(a) hereof.

 

Tenant’s Transfer Notice shall have the meaning
given to it in Section 16.3 hereof.

 

Tenant’s Work shall have the meaning given to it in Section 13.1(b) hereof.

 

Visitor(s) shall mean any visitor, guest, licensee or
invitee of Tenant or any Sublessee, including any Agent, while on the Real
Estate.

 

5

 

	
   

  	
  1.3           Table of Contents.

  	
   

  
	
   

  	
   

  	
   

  
	
  1.

  	
  SUMMARY OF BASIC LEASE PROVISIONS, DEFINITIONS AND TABLE OF
  CONTENTS

  	
  1

  
	
   

  	
   

  	
   

  
	
  2.

  	
  LEASE OF DEMISED PREMISES

  	
  8

  
	
   

  	
   

  	
   

  
	
  3.

  	
  COMMENCEMENT OF TERM; EXPIRATION DATE

  	
  8

  
	
   

  	
   

  	
   

  
	
  4.

  	
  INTENTIONALLY DELETED PRIOR TO EXECUTION

  	
  9

  
	
   

  	
   

  	
   

  
	
  5.

  	
  RENT

  	
  10

  
	
   

  	
   

  	
   

  
	
  6.

  	
  TAXES; OPERATING COSTS; REIMBURSEMENTS

  	
  10

  
	
   

  	
   

  	
   

  
	
  7.

  	
  TENANT’S PERSONAL TAXES

  	
  15

  
	
   

  	
   

  	
   

  
	
  8.

  	
  SECURITY

  	
  15

  
	
   

  	
   

  	
   

  
	
  9.

  	
  USE AND OCCUPANCY

  	
  16

  
	
   

  	
   

  	
   

  
	
  10.

  	
  ACCESS; COMMON AREAS; PARKING

  	
  17

  
	
   

  	
   

  	
   

  
	
  11.

  	
  RESTRICTIVE COVENANT - FOOD SERVICE

  	
  18

  
	
   

  	
   

  	
   

  
	
  12.

  	
  TENANT’S CARE AND REPAIR OF DEMISED PREMISES

  	
  19

  
	
   

  	
   

  	
   

  
	
  13.

  	
  TENANT’S WORK AND INSTALLATIONS

  	
  19

  
	
   

  	
   

  	
   

  
	
  14.

  	
  COMPLIANCE WITH LAWS

  	
  22

  
	
   

  	
   

  	
   

  
	
  15.

  	
  ENVIRONMENTAL COMPLIANCE

  	
  23

  
	
   

  	
   

  	
   

  
	
  16.

  	
  ASSIGNMENT; SUBLEASING

  	
  24

  
	
   

  	
   

  	
   

  
	
  17.

  	
  NOTIFICATION BY TENANT

  	
  30

  
	
   

  	
   

  	
   

  
	
  18.

  	
  RULES AND REGULATIONS

  	
  31

  
	
   

  	
   

  	
   

  
	
  19.

  	
  PEACEABLE ENJOYMENT

  	
  31

  
	
   

  	
   

  	
   

  
	
  20.

  	
  SURRENDER

  	
  31

  
	
   

  	
   

  	
   

  
	
  21.

  	
  HOLDING OVER

  	
  32

  
	
   

  	
   

  	
   

  
	
  22.

  	
  INDEMNITY

  	
  32

  
	
   

  	
   

  	
   

  
	
  23.

  	
  LANDLORD’S WORK

  	
  33

  
	
   

  	
   

  	
   

  
	
  24.

  	
  SERVICES TO BE PROVIDED BY LANDLORD

  	
  34

  
	
   

  	
   

  	
   

  
	
  25.

  	
  ELECTRICITY

  	
  35

  
	
   

  	
   

  	
   

  
	
  26.

  	
  HEATING, VENTILATION AMD AIR CONDITIONING

  	
  36

  
	
   

  	
   

  	
   

  
	
  27.

  	
  CLEANING SERVICES

  	
  36

  
	
   

  	
   

  	
   

  
	
  28.

  	
  LANDLORD’S ACCESS TO DEMISED PREMISES AMD ALTERATIONS

  	
  37

  
	
   

  	
   

  	
   

  
	
  29.

  	
  LIMITATION OP LIABILITY

  	
  38

  
	
   

  	
   

  	
   

  
	
  30.

  	
  PROPERTY LOSS; DAMAGE; INSURANCE

  	
  39

  
	
   

  	
   

  	
   

  
	
  31.

  	
  DAMAGES BY FIRE OR OTHER CASUALTY

  	
  40

  
	
   

  	
   

  	
   

  
	
  32.

  	
  WAIVER OF SUBROGATION

  	
  42

  
	
   

  	
   

  	
   

  
	
  33.

  	
  EMINENT DOMAIN

  	
  42

  
	
   

  	
   

  	
   

  
	
  34.

  	
  DEFAULTS) EVENTS OF DEFAULT

  	
  43

  
	
   

  	
   

  	
   

  
	
  35.

  	
  REMEDIES FOR EVENTS OF DEFAULT

  	
  44

  
	
   

  	
   

  	
   

  
	
  36.

  	
  LANDLORD’S PERFORMANCE; EXPENDITURES

  	
  46

  
	
   

  	
   

  	
   

  
	
  37.

  	
  ACCORD AND SATISFACTION

  	
  47

  

 

6

 

	
  38.

  	
  EFFECT OF WAIVERS

  	
  47

  
	
   

  	
   

  	
   

  
	
  39.

  	
  BANKRUPTCY; INSOLVENCY

  	
  48

  
	
   

  	
   

  	
   

  
	
  40.

  	
  STATUTORY WAIVER; WAIVER OF TRIAL BY JURY

  	
  49

  
	
   

  	
   

  	
   

  
	
  41.

  	
  SUBORDINATION OF LEASE; ESTOPPEL CERTIFICATES

  	
  49

  
	
   

  	
   

  	
   

  
	
  42.

  	
  PARTNERSHIP TENANT

  	
  51

  
	
   

  	
   

  	
   

  
	
  43.

  	
  INTENTIONALLY DELETED PRIOR TO EXECUTION

  	
  52

  
	
   

  	
   

  	
   

  
	
  44.

  	
  CORPORATE AUTHORITY

  	
  52

  
	
   

  	
   

  	
   

  
	
  45.

  	
  MANAGING AGENT

  	
  53

  
	
   

  	
   

  	
   

  
	
  46.

  	
  BROKER

  	
  53

  
	
   

  	
   

  	
   

  
	
  47.

  	
  NOTICES

  	
  53

  
	
   

  	
   

  	
   

  
	
  48.

  	
  INTERPRETATION

  	
  54

  
	
   

  	
   

  	
   

  
	
  49.

  	
  NO OFFER, AGREEMENT OR REPRESENTATIONS

  	
  56

  
	
   

  	
   

  	
   

  
	
  50.

  	
  APPLICABILITY TO HEIRS AMD ASSIGNS

  	
  56

  
	
   

  	
   

  	
   

  
	
  51.

  	
  RENEWAL OPTIONS

  	
  56

  
	
   

  	
   

  	
   

  
	
  52.

  	
  INTENTIONALLY DELETED PRIOR TO EXECUTION

  	
  59

  
	
   

  	
   

  	
   

  
	
  53.

  	
  INTENTIONALLY DELETED PRIOR TO EXECUTION

  	
  59

  
	
   

  	
   

  	
   

  
	
  54.

  	
  FORCE MAJEURE

  	
  59

  
	
   

  	
   

  	
   

  
	
  55.

  	
  SATELLITE ANTENNA

  	
  59

  
	
   

  	
   

  	
   

  
	
  56.

  	
  RIGHT OF FIRST OFFER

  	
  60

  
	
   

  	
   

  	
   

  
	
  57.

  	
  USA PATRIOT ACT

  	
  61

  
	
   

  	
   

  	
   

  
	
  58.

  	
  SUPPLEMENTAL HVAC

  	
  61

  
	
   

  	
   

  	
   

  
	
  59.

  	
  EXTERIOR SIGNAGE

  	
  61

  

 

SIGNATURE PAGE

 

EXHIBITS

 

	
  A

  	
  RENTAL
  PLAN

  
	
   

  	
   

  
	
  B

  	
  LEGAL
  DESCRIPTION OF LAND

  
	
   

  	
   

  
	
  C

  	
  CLEANING
  SERVICE RIDER

  
	
   

  	
   

  
	
  D

  	
  LEGAL
  HOLIDAYS

  
	
   

  	
   

  
	
  E

  	
  RULES
  AND REGULATIONS

  
	
   

  	
   

  
	
  F

  	
  LANDLORD’S
  BUILDING WORK

  

 

7

 

2.             LEASE
OF DEMISED PREMISES

 

2.1           Landlord hereby
leases to Tenant, and Tenant hereby hires from Landlord, upon the terms and
conditions herein set forth, the Demised Premises in the Building which is
situated on the Land.

 

3.             COMMENCEMENT
OF TERM; EXPIRATION DATE

 

3.1           The parties
intend that the Term of Lease shall commence on or about the Estimated
Commencement Date.  However, the actual
commencement of the Term of Lease (“Commencement Date”)
shall be the earlier of:  (1) the
date upon which Landlord’s Work shall be substantially completed; or (2) the
date on which Tenant shall have taken possession or control of or moved
furniture or other personal property into all or any portion of the Demised
Premises for the purpose of conducting Tenant’s business in and from the
Demised Premises.

 

3.2           For purposes
hereof, Landlord’s Work shall be deemed to be substantially completed for all
purposes hereunder (“Substantial Completion”) on the date upon which Landlord
has procured a temporary or permanent certificate of occupancy permitting
occupancy of the Demised Premises by Tenant.

 

3.3           (a)           Substantial Completion shall
be deemed to have occurred even though:  (1) minor
details of Landlord’s Work remain to be done, provided such details do not
materially interfere with Tenant’s occupancy of the Demised Premises; or (2) any
work or installation other than Landlord’s Work being performed by Tenant
itself or its own Agent (s) has not been completed.

 

(b)           Notwithstanding
anything to the contrary contained in this Article, if for any reason the
Demised Premises are not ready for occupancy on the Estimated Commencement Date
solely due to factors beyond the reasonable control of Landlord, other than
delays caused by Tenant or its Agent, such as any of the delays set forth in Section 23.4
hereof: (1) this Lease shall nevertheless continue in full force and
effect; (2) the Commencement Date shall be postponed until Substantial
Completion has occurred; and (3) the Expiration Date shall be adjusted to
provide for the full Term of Lease.

 

(c)           Notwithstanding
anything to the contrary contained in this Article, should the Demised Premises
not be ready for Tenant’s occupancy on the Estimated Commencement Date and said
delay is due in whole or in part to the modification by Tenant or its Agent of
any plans for Landlord’s Work in the Demised Premises after the Tenant Drawing
Date, or due to other delays caused by Tenant or its Agent or the employees of
either, then, provided Landlord shall have given Tenant prior notice to such
effect, the Commencement Date shall be the Estimated Commencement Date.

 

3.4           On or about the
Commencement Date, Landlord or Managing Agent shall deliver to Tenant a notice
(the “Commencement Date Notice”) fixing the
Commencement Date and the expiration date (“Expiration Data”),
which shall be the last day of the month which reflects the Term of Lease (the “Initial Term”), as well as the payee and address for all
rental payments.  Tenant shall
acknowledge receipt of the Commencement Date Notice by signing a copy of same
and returning it to Landlord within five (5) business days of the receipt
thereof.  Tenant’s failure to sign an
accurate Commencement Date Notice and return same to Landlord as provided in
this Section shall be deemed to be Tenant’s acceptance of the Commencement
Date and Expiration Date as correctly stated in an accurate Commencement Date
Notice.

 

8

 

3.5           The date upon
which Tenant is obligated to commence payment of Minimum Rent hereunder (“Rent Commencement Data”) shall be the Commencement
Date.  Notwithstanding the foregoing, Tenant
shall pay Landlord upon the execution of this Lease:  (a) the Prepayment of Rent, which shall
be applied to Minimum Rent due beginning the first (1st) full month that Tenant is
obligated to pay Minimum Rent after depletion of the Rental Credit; and (b) the
Security.  So long as there is no Event
of Default under this Lease, the Rental Credit shall be applied to the Minimum
Rent as it becomes due, beginning on the Commencement Date.  If the Commencement Date occurs on a day
other than the first (1st) day of a
calendar month, then, the Minimum Rent for such partial calendar month shall be
prorated at a per diem rate of one-thirtieth (1/30) of the first full monthly
installment of Minimum Rent.

 

3.6           As a condition
of Landlord’s agreement hereunder, subject to Article 23 hereof, Tenant
agrees to take possession of and accept the Demised Premises in their “as is”
physical condition and state of repair as of the Commencement Date.  In this regard, Landlord shall have no
obligation to do any work or perform any services with respect to the
preparation of the Demised Premises, except as otherwise provided in Article 23
hereof.  Landlord shall obtain, at no
expense to Tenant, a certificate of occupancy for the Demised Premises.

 

3.7           Landlord hereby
grants Tenant a revocable license, solely for the fifteen (15) day period
immediately prior to the Commencement Date, to enter the Demised Premises to
make installation of Tenant’s equipment, fixtures and furniture on the
condition that:  (i) such
installation is in harmony with and in no way delays, hampers or interferes
with the construction of Landlord’s Work; and (ii) all materialmen,
laborers, subcontractors and contractors maintain workman’s compensation,
public liability and property damage insurance, with a hold harmless provision
in favor of Landlord, all in amounts and with companies reasonably satisfactory
to Landlord and proof of said insurance is furnished to Landlord prior to the
commencement of any work.  Landlord expressly
reserves the right to revoke the aforementioned license:  (a) as allowed by law; or (b) if
there is an Event of Default under this Lease. 
Tenant agrees that the failure of any such equipment, fixtures or
furniture installation to be completed shall not delay or defer the
Commencement Date.  If, prior to the
Commencement Date, Tenant shall enter the Demised Premises to make any
installations of its equipment, fixtures or furnishings, Landlord shall have no
liability for any personal injury or property damage suffered by Tenant, its
employees or Agents, except to the extent caused directly by Landlord’s (or its
agents’, employees’ and contractors’) negligence or misconduct.

 

3.8           If, through no
fault of Tenant, Substantial Completion occurs after November 30, 2004,
but before January 1, 2005, then, upon the prior written request of
Tenant, Landlord shall, provided no Event of Default has occurred under this
Lease, give Tenant, as its sole and exclusive remedy for such delay, one-half
(1/2) day’s worth of free Minimum Rent for each day between December 1,
2004 and the Commencement Date.  If,
through no fault of Tenant, Substantial Completion occurs on or after January 1,
2005, then, upon the prior written request of Tenant, Landlord shall, provided
no Event of Default has occurred under this Lease, give Tenant, as its sole and
exclusive remedy for such delay, one-half (1/2) day’s worth of free Minimum
Rent for each day between December 1, 2004 and December 31, 2004 plus
one (1) day’s worth of free Minimum Rent for each day between January 1,
2005 and the Commencement Date.  Tenant
agrees that any free Minimum Rent awarded to Tenant under this Section must
apply consecutively to the applicable number of days beginning

 

9

 

with
the Commencement Date.  Landlord shall
have the right to extend the December 1, 2004 deadline referenced in the
first (1st) and second (2nd) sentences of this Section by
a period equal to the aggregate number of days of delay in Substantial
Completion of any work to be performed for Tenant or in the issuance of a
temporary or permanent certificate of occupancy covering the Demised Premises
occasioned by reason of:  (a) Tenant’s
failure to reasonably cooperate with Landlord; (b) Tenant’s delays in submitting
any drawings or specifications or estimates, or in supplying information, or in
approving drawings, specifications or estimates, or in giving authorizations; (c) any
“extra” or “change order” requested by Tenant; (d) any changes by Tenant
in any designations previously made by Tenant; (e) any acts or omissions
of Tenant; or (f) any cause or factor beyond Landlord’s reasonable
control, including, but not limited to, strikes or other labor disputes,
accidents, orders or regulations of any Governmental Authority, delay due to
adjustment of insurance claims, or lack of availability of materials, parts or
utility services, delay due to the issuance of municipal building permits or
municipal construction authorizations, act of God, fire, earthquake, floods,
explosion, action of the elements, war, hostilities, invasion, insurrection,
riot, mob violence, sabotage or by reason of any other cause, whether similar
or not to the foregoing, that is beyond the reasonable control of Landlord.

 

4.             INTENTIONALLY
DELETED PRIOR TO EXECUTION

 

5.             RENT

 

5.1           Tenant covenants to
pay to Landlord the Minimum Rent, payable in equal monthly installments in
advance, so that such payments are received by Landlord no later than the first
day of each month during the term of this Lease, subject to Section 3.5
hereof.

 

5.2           Tenant covenants to
pay Adjusted Minimum Rent in a timely manner as provided in Article 6
hereof.

 

5.3           The Minimum Rent or
Adjusted Minimum Rent payable hereunder by Tenant shall be paid without notice
or demand and, except as may otherwise be expressly provided elsewhere in this
Lease to the contrary, without set-off, counterclaim, abatement, reduction or
defense, in currency or immediately-available funds which at the time of
payment is legal tender for public and private debts in The United States of
America, at the address of Landlord set forth above or at such other place as
Landlord or its Managing Agent may from time to time designate in writing to
Tenant.

 

6.             TAXES;
OPERATING COSTS; REIMBURSEMENTS

 

6.1           (a)  If the
Taxes for any Tax Year during the term of this Lease shall be greater than the
Base Taxes, then Tenant shall pay to Landlord, as additional rent, an amount
equal to Tenant’s Occupancy Percentage times such excess (“Tenant’s Share of
Taxes”).

 

(b)           “Taxes”
shall mean all real estate taxes, charges and assessments imposed upon the
Demised Premises or the Real Estate or any part thereof by any Governmental
Authority.  Landlord shall have the
exclusive right, but not the obligation, to contest or appeal any Taxes or
assessments levied on the Real Estate or any portion thereof and any
actual, out-of-pocket and reasonable expense incurred by Landlord in connection
with such contest or appeal, including, but not limited to, reasonable
fees payable to attorneys, appraisers and consultants, shall be deemed “Taxes”.  Taxes shall not include:  (i) corporate franchise tax; (ii) income
tax; (iii) transfer tax; (iv) estate tax; (v)

 

10

 

inheritance
tax; (vi) succession tax; (vii) gift tax; (viii) excise tax; (ix) unincorporated
business tax; (x) capital stock tax; and (xi) late charges, interest and
penalties.  If, however, any of the
foregoing items referenced in subsection (i)-(xi) hereof are imposed in lieu of
the real estate taxes, charges and assessments referenced in the first (lst) sentence of this Section,
then, notwithstanding anything contained to the contrary in the immediately
preceding sentence, Taxes shall include the particular item or items in
subsection (i)-(xi) hereof that are imposed in lieu of the real estate taxes,
charges and assessments referenced in the first (1st) sentence of this Section.  If, after the Commencement Date, Landlord
pays an entire assessment in a single lump sum, then, the Taxes for that year
and each year thereafter during the term shall reflect the portion of the
assessment which would have been due annually had Landlord taken the maximum
time period to pay said assessment prior to the imposition of interest,
penalties or late charges.

 

(c)           Upon the issuance by
any authority having jurisdiction over the Real Estate of a bill or bills for
any Tax Year or portion thereof subsequent to the First Tax Year, Landlord
shall submit to Tenant a statement (the “Tax Statement”)
which shall indicate Tenant’s Share of Taxes, which Tax Statement shall be
accompanied by a copy of the latest tax bill or bills for the Taxes for said
Tax Year.  Within thirty (30) days after
the issuance of the Tax Statement, Tenant shall pay to Landlord, as additional
rent, Tenant’s Share of Taxes as set forth therein.

 

(d)           Notwithstanding
anything to the contrary contained herein, should the Demised Premises or any
other portion of the Building be separately assessed for tax purposes, then
Landlord shall have the option of declaring Tenant’s Share of Taxes to be (1) the
actual Taxes allocated to the Demised Premises, or (2) that amount which
is the result of multiplying (i) the Taxes for that portion or portions of
the Building containing the Demised Premises times (ii) a ratio, which
shall be the square footage of the Demised Premises divided by the total square
footage of the portion of the Building to which the Taxes in question apply.

 

6.2           (a) Tenant
hereby covenants that for each Operating Year during the term of this Lease for
which the Operating Costs shall exceed the Operating Costs for the First
Operating Year, Tenant shall pay to Landlord, as additional rent, an amount
equal to Tenant’s Occupancy Percentage times such excess (“Tenant’s
Share of Operating Costa”) within thirty (30) days after
presentation of Landlord’s statement (the “Operating Statement”)
therefor.  The Operating Statement shall
indicate:  (1) the initial
additional amount, if any, required to be paid by Tenant as additional rent as
provided in this Section; (2) Tenant’s new Adjusted Minimum Rent; and (3) the
manner in which such adjustment is computed. 
Landlord shall present its Operating Statement within ninety (90) days
(the “Billing Data”) after the commencement
of each such Operating Year.  Tenant
shall thereafter, for the balance of that Operating Year and for that portion
of the next Operating Year until the next Billing Date, include monthly
payments of one-twelfth (l/12th) of such increase as an addition to Adjusted
Minimum Rent, such amounts to be paid as estimates of Tenant’s Operating Costs
for such subsequent Operating Year, and which amounts shall be credited for the
account of Tenant against the payment due on the next Billing Date.

 

(b)           “Operating
Costs” shall include each and every expense actually and reasonably
incurred in connection with the ownership, administration, management,
operation, repair and maintenance of the Real Estate, including, but not
limited to, wages, salaries and fees paid to persons either employed by Landlord
or engaged as contractors in the operation of the Real

 

11

 

Estate
at or below the level of property manager, and such other typical items of
expense as are indicated below.  All such
costs and the values allocated to services rendered and supplies delivered
shall be reflected on the Operating Statement and shall be exhibited to Tenant
upon request pursuant to Section 6.2(d) hereof.  The following shall not be included in
Operating Costs:

 

1.             utility coats for overtime lighting and overtime HVAC to
the extent said costs are actually paid by the tenants to whom said overtime
services are provided;

2.             expenditures of a capital nature for the replacement of
structural components to the Building, except to the extent that such
expenditures for the replacement of structural components to the Building (i) are
necessitated by a legal requirement in effect after the Date of Lease or (ii) cause
a reduction in any item of Operating Costa (the expenditures referenced in
subsection (i) and/or (ii) hereof are hereinafter referred to in Section 6.2(f) hereof
as “Pass-Through Capital Improvements”);

3.             depreciation and amortization of debt;

4.             reserves for bad debts;

5.             expenses incurred in procuring tenants (including, without
limitation, brokerage commissions, advertising expenses and expenses of
renovating or otherwise preparing space for tenants’ initial occupancy);

6.             interest on any mortgage and other mortgage financing
charges including points or prepayment charges;

7.             rent or any other sums payable under any ground or
underlying lease or leases;

8.             compensation paid for clerks or attendants in
concessions or newsstands operated by Landlord;

9.             the cost of any special or extraordinary service for
which any tenant, including Tenant, has paid in full and was charged directly;

10.           any cost or expense representing an amount paid to a
person or entity related to Landlord which is in excess of the amount which
would have been paid for comparable first-class goods or services in the
absence of such relationship;

11.           any expenditures for which Landlord is reimbursed (other
than pursuant to a general operating cost pass through);

12.           any expense paid or incurred by Landlord for repairs to
the extent Landlord actually receives insurance proceeds or condemnation awards
therefor;

13.           increases in insurance premiums to the extent such
increase is solely attributable to increased risks from prohibited activities
of any other tenant in the Building;

14.           expenses resulting from the tortious conduct or gross
negligence of Landlord, its agents or employees within the scope of their
employment;

15.           the cost of redecorating or special cleaning or other
special services or higher level of service incurred for individual tenants not
provided on a regular basis to other office tenants of the Building;

16.           costs incurred in connection with the clean-up of, or
other action taken with regard to, any hazardous or toxic wastes or substances
deposited in the Building by Landlord in violation of laws in effect at the
time Landlord so deposited said wastes or substances;

17.           costs associated with the operation of the business of
Landlord, as opposed to costs specifically attributable to the operation of the
Building;

18.           costs of any fines or penalties, or any interest assessed
against Landlord;

19.           Taxes;

20.           fees for professional services of lawyers and accountants
incurred in connection with the transfer of Landlord’s interest in the Real
Estate; and

21.           legal fees and court costs incurred litigating against
tenants in non-payment of rent disputes.

 

12

 

(c)           Some of the typical
items of expense which comprise or may comprise the Operating Costs which are
to be included in the Operating Statement are or may be, without limiting the
generality of the term Operating Costs:  (1) general
repairs and maintenance to the exterior and common areas of the Improvements; (2) utility
costs, including, but not limited to, costs of energy to power Landlord’s
standard HVAC units serving the Building (both tenant and common areas), and
costs of electricity to light the common areas; (3) cleaning costs,
including, but not limited to, window cleaning, general interior office
cleaning and cleaning of common areas; (4) service and/or maintenance
contracts, including, but not limited to, HVAC, rubbish removal, carting,
janitorial, security watchmen, exterminating and snow removal to the extent
such services and/or maintenance are contracted for by Landlord or Managing
Agent; (5) costs of landscaping and maintenance of the Building grounds; (6) costs
of insurance and any deductible thereunder; (7) salaries, benefits and
work uniforms of superintendents, engineers, mechanics and custodians; (8) towel
service for common lavatories; (9) sales and use taxes; (10) cost of
regularly replacing fluorescent tubes and ballasts in tenant spaces, unless due
to the carelessness of such individual tenant; (11) costs, if any, of
landscaping or snowplowing public roadways in or adjacent to the development of
which the Real Estate is a part; and (12) such other costs and expenses
actually and reasonably incurred in the operation, maintenance and repair of
first-class real property of the nature and in the area of the Real Estate.

 

(d)           The expenditures referred
to in this Article shall be determined in accordance with generally
accepted accounting principles, consistently applied.  So long as there is no Event of Default under
any provisions of this Lease, Tenant or its representative shall have the
right, at its own expense, upon reasonable notice and during reasonable hours,
to inspect the books of Landlord for the purpose of verifying the information
contained in any Operating Statement, provided: 
(1) prior written request for such inspection shall be made by
Tenant; (2) such request is made within ninety (90) days of receipt of the
Operating Statement to be verified; (3) Tenant shall have paid the
Operating Statement in full; and (4) such inspection is conducted by only
an independent accounting firm that is not being compensated by Tenant on a
contingency fee basis.  Any Operating
Statement not verified within said ninety (90) day period shall be deemed to be
correct.  The payment in full of all
amounts due under any Operating Statement may be made by Tenant under protest
and without prejudice to Tenant’s rights contained in this Section.

 

(e)           Notwithstanding
anything to the contrary contained in this Article, if the average occupancy of
the Building is less than one hundred percent (100%) during the First Operating
Year or any subsequent Operating Year, then Landlord shall make a reasonable
determination (“Landlord’s Determination”) of
what the Operating Costs for such year would have been if during the entire
year the average tenant occupancy of the Building were one hundred percent
(100%).  Subject to Tenant’s rights under
Section 6.2(d) hereof. 
Landlord’s Determination shall be binding and conclusive upon Tenant and
shall for all purposes of this Lease be deemed to be the Operating Costs for
such Operating Year.

 

(f)            Notwithstanding
anything contained to the contrary in Section 6.2(b)2. hereof, Landlord
and Tenant agree that the cost of all Pass-Through Capital Improvements shall
be deemed Operating Costs, except that Tenant shall pay for the costs of all
Pass-Through Capital Improvements as follows: 
(1) Landlord shall amortize on a straight-line basis over the
useful life of the Pass-Through Capital Improvement (as reasonably

 

13

 

determined
by Landlord) the coat of performing said Pass-Through Capital Improvement; and (2) Tenant
shall pay Landlord as an Operating Coat during the year of the Lease in which
the Pass-Through Capital Improvement work commences, and in each subsequent
year of the Lease, an amount equal to (y) Tenant’s Occupancy Percentage of
said amortized cost of performing the Pass-Through Capital Improvement plus (z) Interest
on the unamortized cost of performing the Pass-Through Capital
Improvement.  If, however, any capital
improvement, including, but not limited to, a Pass-Through Capital Improvement,
is necessitated by Tenant’s acts or omissions, then, said capital improvement
shall be performed by Landlord at Tenant’s sole expense and the amounts payable
from Tenant to Landlord therefor shall constitute additional rent and shall be
due in full within thirty (30) days after Tenant’s receipt of Landlord’s
invoice therefor, together with supporting documentation that substantiates the
expense.

 

6.3           If, due to an error
in the preparation of any Tax Statement or Operating Statement, there shall be
an additional amount payable or a refund due with respect to Taxes and/or
Operating Costs for the period covered by such statement(s), such amount shall
be calculated by Landlord or Managing Agent and sent to Tenant in a revised Tax
or Operating Statement, and any amount payable by Tenant to Landlord shall be
paid within thirty (30) days, as additional rent or the amount due to Tenant
shall either be credited against amounts due or to become due to Landlord or
promptly refunded to Tenant hereunder. 
However, it is agreed by the parties that any credit shall not in any
way operate to reduce the Minimum Rent payable by Tenant.  If such calculation takes place and/or any
payment in connection herewith becomes payable by either Landlord or Tenant
after the expiration or earlier termination of this Lease, this Section shall
be deemed to have survived such expiration or termination.

 

6.4           Any increase in
additional rent under this Article shall be prorated for the final Tax
Year or Operating Year if such Tax Year or Operating Year covers a period of
less than twelve (12) full months. 
Tenant’s obligation to pay additional rent occurring hereunder prior to
the Expiration Date shall survive the expiration or sooner termination of this
Lease.

 

6.5           If any tenant in the
Building for any reason shall not be provided all services generally provided
by Landlord to other tenants of the Building, then for purposes of determining
Operating Costs, Landlord shall reasonably estimate what Operating Costs would
have been had such service been provided to all tenants.  If any appliances or electrical or mechanical
equipment are installed in the Demised Premises or elsewhere on the Real Estate
solely for the use of Tenant or the Demised Premises, such appliances or
electrical or mechanical equipment shall be maintained in good operating
condition by Tenant at its sole cost and expense.

 

6.6           Tenant shall pay to
Landlord, within thirty (30) days of rendition of an invoice therefor, any
sales, use, excise or similar tax or assessment imposed upon this Lease or upon
all or any portion of the Minimum Rent or Adjusted Minimum Rent payable
hereunder.

 

6.7           Tenant shall
reimburse Landlord for all actual, out-of-pocket and reasonable expenses in
connection with the review by Landlord’s architect, engineer, planner,
construction advisor or attorney of any alteration, assignment, sublease,
financing, waiver or similar proposed activity or document of or on behalf of
Tenant or any Sublessee within thirty (30) days of rendition of an invoice
therefor, together with supporting documentation that substantiates the
expenses.

 

14

 

7.             TENANT’S
PERSONAL TAXES

 

7.1           Tenant agrees to pay
all taxes, assessments and fees imposed upon Tenant or on the personal property
or operations of Tenant in connection with its use and occupancy of the Demised
Premises, including, but not limited to, personal property, income, withholding
and unemployment compensation taxes, and to hold Landlord harmless from
collection of any such taxes out of monies due and owing Landlord or property
in which Landlord may have an interest. 
This provision shall survive the expiration or sooner termination of
this Lease.

 

8.             SECURITY

 

8.1           Tenant shall deposit
the Security with Landlord on the date hereof as security for the faithful
performance and observance by Tenant of the terms, provisions, covenants and
conditions of this Lease.  It is agreed
that if an Event of Default occurs, Landlord may use, apply or retain the whole
or any part of the Security to the extent required for the payment of any
Adjusted Minimum Rent or additional rent, or any other sum as to which Tenant
is in Default, or for any sum which Landlord may reasonably expend or may be
reasonably required to expend by reason of such Event of Default, including,
but not limited to, any damages or deficiency in the re-letting of the Demised
Premises, whether such damages or deficiency accrued before, after or in the
absence of summary proceedings or other re-entry by Landlord.

 

8.2           If Tenant shall
fully and faithfully comply with all of the terms, provisions, covenants and
conditions of this Lease, the Security shall be returned to Tenant after the
Expiration Date, after delivery of possession of the entire Demised Premises to
Landlord as required hereunder, and less any amounts either due and owing
Landlord hereunder or reasonably required to return the Demised Premises to the
condition required herein.

 

8.3           In the event of a
sale of the Building (with or without the Land) or a leasing of the Building in
its entirety to a third party subject to the space leases therein (a “Building
Lessor”), Landlord shall have the right to transfer the Security to the grantee
or lessee, and in the event Landlord so transfers the Security, Landlord shall
thereupon be released by Tenant from all liability for the return of such
Security, provided Landlord shall have given notice to Tenant of such transfer;
and Tenant agrees to look solely to the new owner or Building Lessor, as the
case may be, for the return of said Security. 
It is agreed that the provisions hereof shall apply to every transfer or
assignment made of the Security to a new Building owner or Building
Lessor.  The aforementioned provisions
shall be self-operative without any further act by Landlord or Tenant necessary
to effectuate the same.  Tenant further
covenants that it will not assign or encumber or attempt to assign or encumber
the Security, and that Landlord shall not be bound by any such assignment,
encumbrance, attempted assignment or attempted encumbrance.

 

8.4           If Landlord applies
or retains all or any portion of the Security as may be permitted herein,
Tenant shall restore within five (S) business days of Landlord’s notice
the amount so applied or retained so that at all times during the term hereof
the amount deposited with Landlord shall be not less than the amount indicated
in Article 1 hereof.

 

8.5           Tenant shall not
designate any portion of the Security as Minimum Rent or Adjusted Minimum Rent
due hereunder.

 

8.6           Intentionally
Deleted Prior To Execution

 

15

 

8.7           Tenant, in lieu of
cash, may deliver to Landlord, as Security, an irrevocable negotiable letter of
credit (the “Letter of Credit”) by and drawn on a bank or trust company
approved by Landlord, which approval shall not be unreasonably withheld,
delayed or conditioned, in form and content reasonably acceptable to Landlord
for its account in the amount of the Security. 
The expiration date of the Letter of Credit shall be the forty fifth (45th) day after the Expiration
Date.

 

8.8           Upon Landlord’s
demand, Tenant, at its expense, shall revise the Letter of Credit by changing
the beneficiary thereunder to whomever Landlord or Managing Agent may designate
from time to time in writing to Tenant. 
Tenant shall deliver the revised Letter of Credit naming the new
beneficiary within thirty (30) days after Landlord requests delivery of same.  Failure to deliver such revised Letter of
Credit within the aforementioned thirty (30) day period shall be a breach of
this Lease, and Landlord shall have the right, among other remedies provided
hereunder, to present the existing Letter of Credit for payment in full, draw
thereon, and either to apply or retain the proceeds thereof in accordance with
this Article, or to assign such proceeds to any Building purchaser or Building
Lessor.

 

8.9           Landlord shall
deposit any cash Security received from Tenant in an interest-bearing account
in a commercial banking institution, subject to Landlord’s right to apply the
Security as provided in this Article 8 and subject to Tenant’s obligation
to restore the amount of Security should Landlord apply or utilize all or any
portion thereof.  The interest-bearing
account in which the cash Security is to be deposited shall be in a commercial
banking institution selected by Landlord and may from time to time be
transferred by Landlord to another commercial banking institution of Landlord’s
choice.  Any interest earned on the cash
Security shall be earned for the account of Tenant but shall be held by
Landlord as additional Security hereunder; except that Landlord may retain one
percent (1%) of the cash Security annually as an administrative fee, which fee
Tenant agrees is fair and reasonable.

 

9.             USE
AND OCCUPANCY

 

9.1           Tenant covenants to
use and occupy the Demised Premises for the Permitted Use and for no other
purpose whatsoever, and in compliance with the other provisions of this Lease.

 

9.2           Tenant shall not do
or permit any act or thing to be done in or to the Demised Premises which is
contrary to Law.  Tenant shall not
knowingly do or knowingly permit any act or thing to be done in or to the
Demised Premises which will invalidate, be in conflict with, or increase the
rates of any public liability, fire or other policies of insurance at any time
carried by or for the benefit of Landlord with respect to the Demised Premises
or the Building.  Tenant shall not do or
permit any act or thing to be done in or to the Demised Premises which shall or
might subject Landlord to any liability or responsibility to any person or for
property or Environmental damage.  Tenant
shall not keep anything in the Demised Premises which is contrary to Law except
as now or hereafter permitted by any Fire Department, Board of Fire
Underwriters, Fire Insurance Rating Organization or other similar authority
having jurisdiction over the Real Estate, nor shall Tenant use the Demised
Premises or any other portion of the Real Estate in a manner which would otherwise
present an unreasonable risk to the Building or the occupants thereof.  Landlord represents that Tenant’s use and
occupancy Of the Demised Premises in strict accordance with the Permitted Use
recited in Section 1.1(p) hereof shall not, in and of itself,
constitute a default by Landlord under any insurance policy procured by
Landlord for the

 

16

 

Building.

 

10.          ACCESS;
COMMON AREAS; PARKING

 

10.1         Subject to the other
provisions of this Lease, including Section 10.2 hereof, and the Rules and
Regulations, Tenant shall have the right of nonexclusive use, in common with
others, of:  (a) automobile parking
spaces not designated for use by others; (b) driveways; (c) footways;
(d) lobbies, corridors and elevators for access to the Demised Premises;
and (e) such other common areas and facilities currently existing or as
may be constructed from time to time on the Real Estate and designated by
Landlord for Tenant’s and other tenants’ use.

 

10.2         The number of parking
spaces in the parking area or areas serving the Building (the “Parking Area”) is limited and must be allocated reasonably
among all tenants of the Building. 
Provided no Event of Default has occurred, Tenant shall have a
nonexclusive license (the “License”) to
park up to the number of care indicated under Allotted Parking in Section 1.1
hereof by Tenant and any Sublessee, or the employees or Visitors of either, in
the Parking Area.  The License may be
revoked pursuant to Section 10.3 hereof. 
Landlord shall not be responsible to Tenant for enforcing the License or
for violation of the License by other tenants of the Building or by third
parties.  Landlord agrees to mark, no
later than the Commencement Date, at Landlord’s sole cost and expense, the
number of parking spaces indicated under Designated Spaces in Section 1.1
hereof for the exclusive use of Tenant, its employees and Visitors.  Said Designated Spaces shall not increase the
Allotted Parking defined in Section 1.1 hereof.

 

10.3         Any of the following
actions shall be deemed a Default under this Lease:  (a) the use of any more than the
Allotted Parking by Tenant, any Sublessee or their employees or Visitors; (b) the
parking in spaces designated for the exclusive use of any other tenant in the
Building by Tenant, any Sublessee or their employees or Visitors; (c) the
parking other than in marked parking spaces by Tenant, any Sublessee or their
employees or Visitors; (d) the maintenance or repair of any vehicle in the
Parking Area by Tenant, any Sublessee or their employees or Visitors, except in
an emergency; or (e) the cleaning of any vehicle in the Parking Area by
Tenant, any Sublessee or their employees or Visitors.  In any of such events, Landlord may suspend
or revoke the License should such practice continue after written notice from
Landlord or Managing Agent, and/or Landlord may exercise such other remedies as
are provided in this Lease.  Landlord
shall not be responsible to Tenant for policing Tenant’s Designated Spaces or
for the use thereof by other tenants of the Building or by other third parties.

 

10.4         If the number of
parking spaces in the Parking Area is reduced by circumstances beyond the
reasonable control of Landlord, the Allotted Parking shall be reduced
proportionately.  Provided no Event of
Default exists and Tenant is not, in whole or in part, responsible for the
reduction of parking spaces in the Parking Area, then, Landlord shall exercise
reasonable efforts to arrange the availability for Tenant’s use of alternate
parking facilities.  Notwithstanding
anything contained to the contrary in Article 6 hereof, all expenses
reasonably incurred by Landlord in connection with the immediately preceding
sentence shall constitute Operating Costs.

 

10.5         Nothing contained in
this Lease shall be deemed to create liability upon Landlord for any damage to
motor vehicles in the Parking Area or for any loss of property from within
those motor vehicles, or for any injury in the Parking Area to Tenant or any
Sublessee or any of their employees or Visitors except to the extent determined
to be caused by the negligence or willful

 

17

 

misconduct
of Landlord or its agents, employees and contractors.  Tenant shall use reasonable efforts to
acquaint its and any Sublessee’s employees with any parking rules and
regulations reasonably promulgated by Landlord or Managing Agent and Tenant
assumes responsibility for compliance by said employees with such parking
provisions, and shall be liable to Landlord for all unpaid parking charges, if
any, incurred by said employees. 
Landlord shall not apply any of the parking rules and regulations
against Tenant on a discriminatory basis, it being understood and acknowledged
by Tenant that:  (a) its specific
use of the Parking Area may be the predicate for Landlord promulgating and
enforcing reasonable parking rules and regulations against Tenant that may
be applicable only to Tenant and no other tenant or occupant of the Building;
and (b) Landlord’s failure to apply or enforce a parking rule and
regulation against a tenant whose lease does not give or provide Landlord a
right to enforce or apply the parking rule and regulation against that
tenant shall not be deemed to be an application of that parking rule and
regulation on a discriminatory basis should Landlord apply that parking rule and
regulation to or against Tenant.

 

10.6         If Tenant or any
Sublessee or the employees or Visitors of either park illegally or in areas
designated for use by others, or in driveways, fire lanes or areas not striped
for general parking, then Landlord may charge Tenant, as additional rent, Fifty
and 00/100 Dollars ($50.00) per day for each instance each motor vehicle is so
parked.  In addition, Tenant authorizes
Landlord and Managing Agent to tow away from the Parking Area, at Tenant’s sole
cost and expense, vehicles used by Tenant, any Sublessee or any employees or
Visitors of either and/or to attach violation stickers or notices to any motor
vehicles used by Tenant or any Sublessee or their employees or Visitors parked
illegally or in violation of this Article or any parking rules and
regulations reasonably promulgated by Landlord or Managing Agent.  Any amount due from Tenant pursuant to this Article shall
be deemed additional rent.

 

10.7         Tenant shall not
conduct, nor permit any Sublessee or the employees or Visitors of either to
conduct, any soliciting or picketing in or on any of the common areas of the
Real Estate.

 

10.8         Tenant shall use
reasonable efforts not to permit its or any Sublessee’ s employees or Visitors
to smoke or carry lighted tobacco products in the common areas of the Building,
including, but not limited to, lobbies, elevators, hallways, stairwells and
restrooms.  Landlord shall post such
areas as nonsmoking areas in accordance with Law.

 

11.          RESTRICTIVE
COVENANT - FOOD SERVICE

 

11.1         Tenant hereby
covenants and agrees that it shall not permit the use of the Demised Premises
or any portion thereof, for the service of food to anyone other than Tenant’s
employees or Visitors, nor shall Tenant maintain any facilities for the sale or
consumption of food to and by anyone other than Tenant’s employees or Visitors,
including vending machines, without, in each case, obtaining the prior written
consent of Landlord, which consent shall not unreasonably be withheld, delayed
or conditioned.

 

11.2         Landlord or the owner
of the office park in which the Building is located may, at the discretion of
either, enter into agreements with third parties for the operation of a
restaurant, cafeteria, coffee-cart or similar food service as an amenity for
the Building and/or other buildings in said office park.  In order to enhance the viability of any such
food service, Tenant shall not prepare, contract for, serve or otherwise make
available a food service facility in competition with such third parties.

 

18

 

11.3         Tenant shall not
suffer or permit the sale or consumption of food or drink in the common areas
of the Building or in the driveways or Parking Area of the Real Estate by the
employees or Visitors of Tenant or any Sublessee; provided, however, that
Tenant’s and any Sublessee’s employees may utilize any picnic tables or similar
areas on the Real Estate which may be designated by Landlord or Managing Agent
for consumption of food and non-alcoholic beverages.

 

11.4         Notwithstanding
anything contained to the contrary in this Article, Tenant may use a portion of
the Demised Premises, not to exceed five hundred (500) rentable square feet, as
an office pantry area containing a refrigerator, sink, microwave oven, coffee
maker, water cooler and such other similar items typical in a first-class
office pantry.  Tenant shall promptly,
strictly and at its sole cost, comply with any reasonable Rules and
Regulations that Landlord may promulgate regarding all aspects of Tenant’s
pantry area, including, but not limited to, the operation thereof, trash
removal therefrom and cleaning therein.

 

12.          TENANT’S
CARE AND REPAIR OF DEMISED PREMISES

 

12.1         Tenant shall,
throughout the term of this Lease, take good care of the interior
non-structural portions of the Demised Premises and maintain, replace or repair
the fixtures and appurtenances therein which serve the Demised Premises.  Tenant shall give Landlord or Managing Agent
prompt notice of any maintenance or repairs needed to the Demised Premises or
the fixtures therein, including, but not limited to, lighting fixtures.  Tenant shall also be responsible for all
damage or injury to the Demised Premises or any other part of the Real Estate
and the systems and equipment thereof, whether requiring structural or
nonstructural repairs:  (a) caused
by or resulting from the negligent or willful conduct of Tenant, any Sublessee
or the employees or Visitors of either; or (b) which arises out of any work,
labor, service or equipment done for or supplied to Tenant or any Sublessee; or
(c) which arises out of the installation, use or operation of the property
or equipment of Tenant or any Sublessee. 
Tenant shall also promptly repair all damage to the Building and the
Demised Premises caused by the moving of fixtures, furniture and equipment of
Tenant or any Sublessee.  If the Demised
Premises are damaged by the negligence or willful misconduct of Landlord or its
agents, employees or contractors, then, subject to Article 31 hereof,
Landlord shall repair said damage at no cost to Tenant.

 

12.2         Tenant shall promptly
make, at Tenant’s expense, all repairs in and to the Demised Premises for which
Tenant is responsible, using only contractors for the trade or trades in
question approved by Landlord or Managing Agent, which approval shall not be
unreasonably withheld, conditioned or delayed. 
Any other repairs in or to the Building or the facilities and systems
thereof for which Tenant is responsible shall be performed by Landlord at
Tenant’s expense, which expense shall be reasonable.

 

12.3         Tenant shall not
clean nor require, permit, suffer or allow any window in the Demised Premises
to be cleaned from the outside.  Such
cleaning shall be governed by the Cleaning Service Rider.

 

13.          TENANT’S
WORK AND INSTALLATIONS

 

13.1         (a) Without
Landlord’s prior written consent, which Landlord may withhold in its sole
discretion, Tenant shall not:  (i) make
or permit any structural changes in or to the Demised Premises or the Building
of any nature; or (ii) make or permit any changes to any of the
electrical, plumbing or HVAC

 

19

 

systems
in the Building.

 

(b)           Subject to the
prior written consent of Landlord, which consent shall not be unreasonably
withheld, delayed or conditioned and to the provisions of this Article, Tenant
or any permitted Sublessee at its expense, may make alterations, decorations,
installations, renovations or improvements, including, but not limited to the
installation of a card key access system, in or to the interior of the Demised
Premises (“Tenant’s Work”) which are non-structural and which do not adversely
affect or place unusual loads upon any utility services, or plumbing and
electrical lines, or electrical or HVAC systems, by using mechanics or other
contractors previously approved by Landlord (which approval shall not be
unreasonably withheld, delayed or conditioned) and properly licensed to do such
work in the State where the Real Estate is located.  Notwithstanding anything contained to the
contrary in this Section 13.1(b), Tenant may perform non-structural Tenant’s
Work without Landlord’s prior written consent, provided that:  (i) there is no Event of Default under
this Lease; (ii) no single or series of related non-structural Tenant’s
Work in any single calendar year exceed an estimated or actual cost of Fifty
Thousand and 00/100 Dollars ($50,000.00); and (iii) no such non-structural
Tenant’s Work adversely affects or places unusual loads upon any utility
services, or plumbing and electrical lines, or electrical or HVAC systems.  With respect to non-structural Tenant’s Work
for which Landlord’s prior written consent is not required, Tenant shall submit
to Landlord detailed plans and specifications at least twenty (20) days prior
to the commencement of work so that Landlord may ascertain whether the
conditions (i) - (iii) in the immediately preceding sentence have
been met.  Upon completion of any Tenant’s
Work, Tenant shall give Landlord a set of “as-built” plans therefor.  Notwithstanding anything contained to the
contrary in the immediately preceding sentence, Tenant shall not be required to
give Landlord “as-built” plans for Tenant’s Work that is entirely and only
decorative and cosmetic in nature. 
Tenant covenants that Tenant’s Work, whether prior, on or subsequent to
the Commencement Date, shall be in harmony with any other work in the Real
Estate and shall not result in work stoppages or picketing at the Real
Estate; and Tenant, at its own expense, shall promptly take whatever steps are
necessary to avoid any such work stoppage or picketing.

 

13.2         Tenant shall
not place a load upon any floor of the Demised Premises exceeding either the
floor load per square foot of area which it was designed to carry or the amount
prescribed by Law.  Landlord reserves the
right to reasonably prescribe the weight and position in the Demised Premises
of all safes, file cabinets, bookshelves, business machines (other than
desk-top machines), mechanical equipment and other heavy personal
property.  Such installations shall be
placed and maintained by Tenant, at Tenant’s sole coat and expense, in settings
sufficient, in Landlord’s reasonable judgment, to absorb and prevent
unreasonable vibration, noise and annoyance to any occupant of the Building or
adjacent properties.

 

13.3         Tenant shall,
before undertaking any Tenant’s Work, at its coat and expense, obtain all
permits, approvals and certificates required by any Governmental Authority and
(upon completion) certificates of final approval thereof, and shall promptly
deliver originals or duplicates of all such permits, approvals and certificates
to Landlord or Managing Agent.  If Tenant
so requests in writing, Landlord, at Tenant’s expense, shall reasonably assist
Tenant in obtaining said permits, approvals and certificates.  Tenant agrees to carry and will cause Tenant’s
Agents to carry during any activities under this Article such workman’s
compensation, general liability, personal and property damage insurance as
Landlord may reasonably require,

 

20

 

naming
Landlord as an additional insured as its interest may appear.  Tenant agrees:  (a) to pay or cause to be paid promptly,
when due, the entire coat of any work done by or for Tenant or any Sublessee
upon the Demised Premises so that the Demised Premises shall be at all times
free of claims or liens for labor or materials;’ and (b) to defend,
indemnify and hold Landlord harmless from and against any and all injury, loss,
demands, claims or damages to any person or property occasioned by or in
connection with Tenant’s Work, to the extent not paid to Landlord by the
carrier of any insurance, and except to the extent directly due to the
negligence or willful misconduct of Landlord or its agents, employees and
contractors.

 

13.4         Notwithstanding
the foregoing, if any mechanic’s or other lien is filed against the Demised
Premises or the Building for work claimed to have been done for or materials or
services furnished to Tenant or any Sublessee (other than Landlord’s Work),
whether or not done pursuant to this Article, the same shall be discharged by
Tenant within thirty (30) days after notice thereof from Landlord or Managing
Agent, at Tenant’s expense, by payment or posting a bond or taking such other
steps as may be required by Law.  If
Tenant fails to discharge such lien within such thirty (30) day period.  Landlord may do so on Tenant’s behalf at
Tenant’s sole cost and expense.

 

13.5         All fixtures
and all paneling, partitions, railings, flooring, electrical conduits and
cabling and like improvements installed in the Demised Premises at any time,
either by Tenant or any Sublessee or by Landlord on Tenant’s behalf, shall, at
the expiration or sooner termination of this Lease, become the property of
Landlord and shall remain upon and be surrendered with the Demised Premises,
unless (subject to the next sentence) Landlord, by notice to Tenant no fewer
than twenty (20) days prior to the expiration or sooner termination of this
Lease, elects to relinquish Landlord’s right thereto and to have same removed
by Tenant, in which event the same shall be removed from the Demised Premises
by Tenant prior to the expiration of this Lease, at Tenant’s sole cost and
expense.  If Landlord consents in writing
to the installation in the Demised Premises of fixtures, paneling, partitions,
railings, flooring, electrical conduits, cabling or other improvements,
Landlord shall advise Tenant simultaneously with Landlord’s written consent,
whether Landlord is requiring such installation to be removed prior to the
expiration of this Lease by Tenant at its expense and Tenant shall strictly
abide by and timely comply with any such advice.  Notwithstanding anything contained to the
contrary in the immediately preceding sentence, Landlord shall have no
obligation whatsoever to as advise Tenant at the time Landlord consents to an
installation, unless the following two (2) conditions have been met prior
to Landlord’s granting of consent:

 

(i) Landlord
receives from Tenant applicable, detailed plans and specifications; and

 

(ii) Landlord
receives from Tenant a written request for consent which specifically demands
that Landlord advise Tenant whether Landlord requires the particular
installation to be removed prior to the expiration of this Lease by Tenant at
its expense.

 

In
no event, however, shall Landlord require Tenant to remove Landlord’s Work from
the Demised Premises prior to the expiration or earlier termination of this
Lease.

 

13.6         Nothing in this
Article shall be construed to give Landlord title to or to prevent Tenant’s
removal of Tenant’s or any Sublessee’s moveable trade fixtures, office
furniture and equipment, but upon removal of any such property from the Demised

 

21

 

Premises
or upon removal of other improvements as may be required by Landlord pursuant
to the terms of this Lease, Tenant shall promptly and at its expense, repair
any damage to the Demised Premises or the Building due to such removal.

 

13.7         All monies due
Landlord or Landlord’s agent or contractor by Tenant for work performed
pursuant to Article 12 hereof or this Article shall be paid within
thirty (30) days of Tenant’s receipt of an invoice therefor, together with
supporting documentation.  All such
monies which are not timely received by Landlord or Landlord’s contractor shall
accrue interest from the due date at the rate of interest.

 

13.8         Tenant shall
promptly remove or correct any Tenant’s Work not performed in accordance with
this Article, provided Landlord shall have given Tenant notice to that effect
specifying in reasonable detail the extent to which Tenant’s Work was not
performed in accordance with this Article and, in the case of removal,
restore the Demised Premises to its preexisting condition, ordinary wear and
tear, insured fire or other insured casualty, condemnation or eminent domain
and those particular repairs which this Lease expressly requires Landlord to
perform excepted.

 

13.9         Tenant, at its
cost and expense, shall remove from the Demised Premises and the Building all
boxes and other packaging resulting from Tenant’s or any Sublessee’s
installations, alterations, renovations and decorations.

 

13.10       Upon Landlord’s
demand, Tenant shall pay to Landlord, as additional rent, a fee reasonably
established by Landlord for any supervisory, administrative and/or coordination
services that Landlord may (but shall not be obligated to) perform in
connection with Tenant’s Work.  Landlord
shall not charge Tenant any such fee for supervisory, administrative and/or
coordination services in connection with Landlord’s Work, except for “change
orders”, “extras” and any modifications to Landlord’s Work requested by Tenant
after the Date of Lease.  Landlord’s
performance of all or any of such services: 
(a) shall be without liability to or recourse against Landlord; (b) shall
not release Tenant from its obligation to strictly comply with each and every
provision of this Lease relating to Tenant’s Work; and (c) shall not
constitute any warranty by Landlord regarding adequacy of design, workmanship
or quality of materials.

 

13.11       If Tenant
requests in writing from Landlord its consent to any proposed Tenant’s Work,
structural or non-structural, and Landlord fails to reply to such request
within ten (10) days after Landlord receives said consent request from
Tenant, then, Landlord’s consent to such proposed Tenant’s Work shall be deemed
denied.  In the event Landlord’s denial
to Tenant’s request for consent to proposed Tenant’s Work, structural or
non-structural, is given in writing to Tenant before the expiration of the ten (10) day
period referenced in the immediately preceding sentence, then, Landlord’s denial
to Tenant’s request for consent shall be accompanied by a statement reciting
Landlord’s reasons for denying consent.

 

14.          COMPLIANCE WITH LAWS

 

14.1         Tenant, at
Tenant’s sole cost and expense, shall promptly comply with:  (a) all present and future Laws of all
Governmental Authorities and all changes therein applicable to Tenant or to the
Demised Premises or, to the extent incumbent upon Tenant, to any other portion
of the Real Estate arising from Tenant’s particular use of the Demised Premises
or manner of use thereof (excluding Tenant’s Permitted Use); (b) any
direction of any public officer pursuant to Law; and (c) all Laws which
shall impose any violation, order or duty upon Landlord or Tenant with

 

22

 

respect
to the Demised Premises or, to the extent incumbent upon Tenant, any other
portion of the Real Estate, whether or not arising out of Tenant’s occupancy,
use or manner of use thereof (excluding Tenant’s Permitted Use).  Nothing herein shall require Tenant to make
structural repairs or alterations which are structural in nature unless Tenant’s
particular use of the Demised Premises or method of operation therein shall be
in violation of any such Law or shall result in the Demised Premises or the Building
being in violation of such Law.

 

14.2         Tenant may, at
its expense (and if necessary, in the name of, but without expense to Landlord)
contest by appropriate proceedings, prosecuted diligently and in good faith,
the validity or applicability to the Demised Premises of any such Law, and
Landlord, at Tenant’s expense, shall cooperate with Tenant in such proceedings;
provided that:  (a) Tenant shall
defend, indemnify and hold Landlord harmless against all liability, loss or
damage which Landlord shall suffer by reason of such non-compliance or contest,
including, but not limited to, reasonable attorneys’ fees and other actual,
out-of-pocket and reasonable expenses incurred by Landlord; (b) such
non-compliance or contest shall not constitute or result in any violation of
any superior lease or superior mortgage, or if such superior lease and/or
superior mortgage shall permit such non-compliance or contest on condition of
the taking of action or furnishing of security by Landlord, such action shall
be taken and such security shall be furnished at the sole coat and expense of
Tenant; (c) such non-compliance or contest shall not subject Landlord to
prosecution for a criminal offense; (d) such action shall not cause the
Demised Premises or any part thereof or of the Real Estate to become subject to
a lien or to be condemned or vacated; and (e) Tenant shall keep Landlord
advised as to the status of such proceedings.

 

14.3         As of the date
hereof, Landlord has not received from a Governmental Authority any written
notice of violation:  (i) alleging
that the Building fails to comply with federal, state or local law in effect on
or before the date hereof; and (ii) which violation remains uncured as of
the date hereof.  Any work performed by
Landlord on and after the date hereof in the Building shall comply with all
applicable laws in effect as of the date said work is substantially completed.

 

15.          ENVIRONMENTAL COMPLIANCE

 

15.1         Tenant shall,
at Tenant’s own cost and expense, comply with the Industrial Site Recovery Act
(N.J.S.A. 13:1K-6 et seq.), the Comprehensive Environmental
Response, Compensation & Liability Act (42 U.S.C. 9601 et seq.),
the Spill Compensation and Control Act (N.J.S.A. 58:10-23.11 et seq.),
any and all amendments thereto and regulations and orders promulgated
thereunder, and any other Environmental Law affecting the Demised Premises or
the Real Estate, to the extent related to or arising out of the use or
occupancy of the Demised Premises by Tenant or any Sublessee.

 

15.2         Tenant shall,
at Tenant’s own cost and expense, make all submissions to, provide all
information to, and comply with all requirements of, the Bureau of Industrial
Site Evaluation of the New Jersey Department of Environmental Protection, or
the U.S. Environmental Protection Agency, or any other Governmental Authority
having Environmental jurisdiction over the Real Estate or any portion thereof
or the occupants thereof (collectively, an “Environmental Authority”) which are
related to or arise out of the use and occupancy of the Demised Premises by
Tenant or any Sublessee.

 

15.3         Should any
Environmental Authority determine that a cleanup or similar plan be prepared or
that a cleanup be

 

23

 

undertaken
because of any spills or discharges of hazardous substances or wastes in or
about the Real Estate caused by Tenant, any Sublessee or the employees or
Visitors of either, then Tenant shall, at Tenant’s own expense, promptly and
diligently prepare and submit the required plans and financial assurances, and
carry out the approved, plans to the satisfaction of such Environmental
Authority.  Tenant acknowledges that its
obligations under this Article may arise if there is any closing,
termination or transfer of operations of Tenant or any Sublessee which is
classified as an industrial establishment, or from a transfer of the Real
Estate or any portion thereof which falls under the purview of an Environmental
Authority.

 

15.4         At no expense
to Landlord, Tenant shall promptly provide all information reasonably requested
by Landlord or Managing Agent or by any Environmental Authority for preparation
of non-applicability affidavits and similar documents for submission to such
Environmental Authority, and shall promptly sign such affidavits when requested
by Landlord or Managing Agent.

 

15.5         To the best of
Landlord’s actual knowledge, but without Landlord having conducted any
independent investigations, Landlord represents that the Demised Premises are
not contaminated, as of the date hereof, with unlawful quantities of hazardous
substances deemed toxic under any applicable statute in effect on the date
hereof.  The foregoing representation is
made solely and exclusively for the benefit of Tenant.  No other person or entity shall have privity
or standing with respect to said representation nor shall any other person or
entity be deemed a beneficiary of such representation.

 

16.          ASSIGNMENT; SUBLEASING

 

16.1         Tenant, for
itself, its legal representatives, creditors, heirs, distributees,
administrators, trustees, successors and assigns, expressly covenants that it
shall not assign, mortgage, pledge or otherwise encumber this Lease, nor,
except as specifically set forth below, underlet, or suffer or permit the
Demised Premises or any part thereof to be used by anyone other than Tenant
named in Section 1.1 hereof.

 

16.2         For purposes of
this Article, any occupancy arrangement (including, without limitation, verbal
agreements, management agreements, concessions, licenses and space-sharing
agreements or arrangements) affecting all or any part of the Demised Premises,
other than a direct lease with Landlord or an assignment of this Lease
permitted hereunder, shall be referred to as a “Sublease”,
and any user or occupant of all or part of the Demised Premises, other than
Tenant or an assignee permitted under this Article, shall be referred to as a “Sublessee.”

 

16.3         If Tenant shall
desire to assign this Lease, or to permit a Sublessee to use or occupy all or
any portion of the Demised Premises (“sublease” or a
“Subleasing”), Tenant shall first
submit in writing to Landlord or Managing Agent a notice (“Tenant’s
Transfer Notice”) setting forth in reasonable details:

 

(a)           the identity
and address of the proposed assignee or Sublessee;

 

(b)           the terms and
conditions of the assignment or Subleasing;

 

(c)           the nature and
character of the business of the proposed assignee or Sublessee and its
proposed use of the Demised Premises;

 

(d)           evidence that
the proposed assignee or

 

24

 

Sublessee
is a United States citizen or a partnership, general, limited or otherwise,
limited liability company, limited liability partnership, professional
corporation or corporation qualified to do business in the State of New Jersey
and organized and in good standing under the laws of one of the States of the
United States;

 

(e)           banking,
financial and other credit information relating to the proposed assignee or
Sublessee reasonably sufficient to enable Landlord to determine the proposed
assignee’s or Sublessee’s financial responsibility; and

 

(f)            in the case of
a Subleasing of only a portion of the Demised Premises, plans and
specifications for Tenant’s layout, partitioning and electrical installations
for the portion of the Demised Premises to be subleased.

 

16.4         (a) If the
nature and character of the business of the proposed assignee or Sublessee, and
the proposed use and occupancy of the Demised Premises, or any portion thereof,
by the proposed assignee or Sublessee, is in keeping and compatible with the
Permitted Use, then, subject to compliance with the requirements of this
Article, Landlord agrees not to unreasonably withhold, condition or delay its
consent to any such proposed assignment or Subleasing; provided, however, that
Tenant shall, in Tenant’s Transfer Notice, advise Landlord of Tenant’s
intention to assign this Lease or to permit a Subleasing of all or any part of
the Demised Premises, from, on and after a stated date (which date shall not be
less than thirty (30) days after the sending of Tenant’s Transfer Notice), in
which event Landlord shall have the right (“Landlord’s Recapture
Right”), to be exercised by giving, within thirty (30) days after
Landlord’s receipt of Tenant’s Transfer Notice, written notice (“Landlord’s Recapture Notice”) to Tenant to recapture the
space described in Tenant’s Transfer Notice. 
If Tenant receives a Landlord’s Recapture Notice, then, Tenant may
nullify said Landlord’s Recapture Notice and withdraw and cancel Tenant’s
Transfer Notice only by giving Landlord a written notice referencing this
sentence, which written notice, to be effective, must be received by Landlord
within ten (10) days after Landlord gives Tenant Landlord’s Recapture
Notice.  Landlord’s Recapture Notice
shall, if given and not withdrawn pursuant to the immediately preceding
sentence, terminate this Lease with respect to the space therein described as
of the date which shall be the later of (1) the date set forth in Tenant’s
Transfer Notice as the commencement of the proposed assignment or Sublease, or (2) the
date that Landlord receives a temporary or permanent certificate of occupancy
permitting the assignee’s or Sublessee’s occupancy of the relevant portion of
the Demised Premises.  If Landlord fails
to reply to Tenant’s Transfer Notice within twenty (20) days after Landlord
receives same, then, Landlord’s consent to the assignment or sublease described
in Tenant’s Transfer Notice shall be deemed denied.  In the event Landlord’s denial to Tenant’s
request for consent to the assignment or sublease described in Tenant’s
Transfer Notice is given in writing to Tenant before the expiration of the
twenty (20) day period referenced in the immediately preceding sentence, then,
Landlord’s denial to Tenant’s request for consent shall be accompanied by a
statement reciting Landlord’s reasons for denying consent.

 

(b)           If less than
all of the Demised Premises are recaptured by Landlord, Landlord shall
construct and erect such partitioning and modify Building systems as may be
required to separate the space retained by Tenant from the space
recaptured.  The actual out-of-pocket
cost of such alterations shall be borne fully and exclusively by Tenant, shall
constitute additional rent hereunder and shall be payable to Landlord within
thirty (30) days following a statement to Tenant from Landlord or Managing

 

25

 

Agent
for the amount thereof, together with supporting documentation.  The Minimum Rent and/or the Adjusted Minimum
Rent, Tenant’s Occupancy Percentage, and Tenant’s Allotted Parking shall be
adjusted pursuant to a written amendment to this Lease on the basis of the
number of square feet retained by Tenant in proportion to the number of square
feet demised under this Lease immediately prior to such recapture, and this
Lease, as so amended, shall continue thereafter in full force and effect as to
the portion of the Demised Premises retained by Tenant.

 

(c)           Notwithstanding
anything contained to the contrary in Sections 16.4(a)-(b) hereof,
Landlord’s Recapture Option shall not apply to a proposed Sublease if:  (i) Tenant has subleased (or is then
subleasing) fewer than three thousand (3,000) rentable square feet; (ii) the
sum total of the rentable square footage covered by the proposed Sublease plus
the rentable square footage that Tenant has subleased (or is then subleasing)
is less than three thousand (3,000) rentable square feet; and (iii) there
is no Event of Default under this Lease. 
Solely for determining whether Landlord’s Recapture Option applies in
accordance with this Section, the rentable square footage of any Sublease under
Section 16.18 hereof shall be deemed to measure zero (0) rentable square
feet.

 

16.5         In addition to
the foregoing requirements:  (a) no
Sublease shall violate any Law or result in the occupancy of the Demised
Premises by more than three (3) sole proprietors, firms, partnerships or
corporations (including the Tenant hereunder and any entities to whom Tenant
has assigned this Lease or subleased all or any part of the Demised Premises in
accordance with and pursuant to Section 16.18 hereof); (b) no
Sublease shall be for a term of less than one (1) year, unless the
unexpired term of this Lease shall be less than one (1) year at the
commencement of the Sublease; (c) no assignee or Sublessee shall be an
existing tenant of, or any party then actively negotiating for space in, the
Building, or any other land or building in the office park in which the
Building is located which is (1) owned by Landlord, any affiliate of
Landlord or any partnership in which Landlord or an affiliate of Landlord is a
partner, or (2) managed by Landlord or an affiliate of Landlord (any such
property referred to under subsection 16.5(c)(l) hereof or (2) being
hereinafter referred to as an “Affiliated Property”);
(d) no Sublease shall result in the occupancy of less than one thousand
(1,000) square feet of space; (e) there shall be no Event of Default under
any of the terms and conditions of this Lease at the time of Tenant’s Transfer
Notice or at the effective date of such assignment or Subleasing; (f) no
Subleasing shall be for a stated face rental rate less than that currently
being charged for comparable space in the Building or any Affiliated Property;
and (g) Tenant shall pay when due all brokerage or similar commissions
arising from any assignment or Sublease.

 

16.6         Anything to the
contrary in this Article notwithstanding, Landlord shall not consent to
any assignment or Sublease unless Tenant agrees at the time of the proposed
assignment or Sublease and in Tenant’s Transfer Notice to pay over to Landlord,
fifty percent (50%) of (a) all consideration (of whatever nature) that
would be payable by the prospective assignee or Sublessee to Tenant, whether in
one or more payments or transfers and whether pursuant to such assignment or
Sublease or any other agreement related thereto, which exceeds (which excess is
hereinafter referred to as “Profit”) (b) the
pro rata share of the Adjusted Minimum Rent plus Tenant’s Share of Taxes
allocable to the Demised Premises, or the relevant portion thereof, payable by
Tenant hereunder.  In computing Profit,
Tenant may only deduct therefrom, to the extent documented as hereinafter
provided, those bonafide, out-of-pocket, reasonable and necessary costs
negotiated at arm’s length directly incurred by Tenant in effecting a sublease
or assignment actually paid to

 

26

 

entities
unaffiliated with Tenant for legal, fit-up and brokerage services, as amortized
over the term of the sublease or, in the case of an assignment, over the
remaining balance of the Lease term.  If,
under the sublease or assignment, Tenant would receive from the assignee or
sublessee any consideration specifically attributable to the sale or rental of
furniture, fixtures and/or equipment located within the Demised Premises, said
consideration shall be included in the calculation of Profit, but in so
computing the Profit, Tenant may deduct therefrom the then unamortized and
undepreciated cost of said furniture, fixtures and/or equipment determined on
the basis of Tenant’s federal income tax returns or other documentation
reasonably satisfactory to Landlord in lieu of federal income tax returns.  Tenant shall promptly provide Landlord
with:  (1) an affidavit sworn to by
an officer of Tenant setting forth in detail the permitted deductions from
Profit, if any; (2) proof of payment, if applicable, for said permitted
deductions from Profit; and (3) applicable federal income tax returns or
other documentation reasonably satisfactory to Landlord in lieu of federal
income tax returns, if appropriate, for a permitted deduction from Profit
related to a sale or rental of furniture, fixtures and/or equipment.

 

16.7         Any Sublease
must specifically provide that:  (a) it
shall be subject and subordinate to all of the terms and conditions of this
Lease; (b) the use of the Demised Premises thereunder shall be restricted
exclusively to the Permitted Use; (c) the term thereof shall not extend
beyond the Expiration Date; (d) no Sublessee or its heirs, distributees,
executors, administrators, legal representatives, trustees, successors or
assigns, without the prior consent of Landlord in each instance, which consent
Landlord may withhold in its absolute discretion, shall (1) assign,
whether by merger, consolidation or otherwise, mortgage or encumber its
interest in any Sublease, in whole or in part, (2) Sublease or permit the
Subleasing of, that part of the Demised Premises affected by such Subleasing or
any portion thereof, or (3) permit such part of the Demised Premises affected
by such Subleasing or any part thereof to be occupied or used, by any person
other than such Sublessee; and (e) in the event of cancellation or
termination of this Lease for any reason whatsoever or of the surrender of this
Lease, whether voluntary, involuntary or by operation of Law, prior to the
expiration date of such Sublease, including any extensions and renewals granted
thereunder, Sublessee, at Landlord’s option and in its sole discretion, shall
either vacate the Demised Premises or shall make full and complete attornment
to Landlord for the balance of the term of the Sublease, which attornment shall
be evidenced by an agreement in form and substance reasonably satisfactory to
Landlord which Sublessee shall execute and deliver within five (5) business
days after request by Landlord. 
Sublessee shall waive the provisions of any Law now or hereafter in
effect which may give Sublessee any right of election to terminate the Sublease
or to surrender possession of the Demised Premises in the event any proceeding
is brought by Landlord to terminate or assume this Lease.

 

16.8         No assignee or
Sublessee shall receive any credit whatsoever from Landlord for security
deposits, rent or any other monies paid to Tenant unless same shall have been
actually received and receipted in writing by Landlord.

 

16.9         Each of the
following events shall be deemed to constitute an “assignment”
of this Lease and shall require the prior written consent of Landlord in each
instance as provided in this Article; any person or entity making an assignment
shall be referred to herein as an “assignor”, and
any person or entity to whom an assignment is made shall be referred to herein
as an “assignee”:

 

27

 

(a)           Any assignment or other transfer of this Lease by
operation of Law;

 

(b)           Any hypothecation, pledge or collateral assignment
of this Lease;

 

(c)           Any assignment or other transfer of this Lease in
connection with bankruptcy or creditor’s rights;

 

(d)           Subject to Section 16.18 hereof, any transfer
or acquisition, whether in a single transaction or cumulatively, of:  (1) the majority of the issued and
outstanding stock or voting interests of a corporate Tenant, except as may
occur through public trades on any recognized security exchange or
over-the-counter market; (2) a majority of the equitable or voting
interests of a Partnership Tenant; or (3) any general partnership interest
of a Partnership Tenant (each of the foregoing being referred to as a “Controlling Interest”); or

 

(e)           Subject to Section 16.18 hereof, any issuance
(other than in a public offering) of an interest or interests in Tenant
(whether stock or partnership interests or otherwise) to any person, entity or
group of related persons or affiliated entities, whether in a single
transaction or in a series of related or unrelated transactions, such that
following such issuance, such person, entity or group shall hold a Controlling
Interest in Tenant.

 

16.10       Tenant, its
Sublessees, and their respective legal representatives, heirs, distributees,
executors, administrators, trustees, creditors, successors and assigns
acknowledge and agree that the restriction that Landlord’s consent under
certain circumstances to a proposed assignment of this Lease or to a Subleasing
shall not be unreasonably withheld shall not be intended or construed as an
agreement or covenant on the part of Landlord, but rather as a qualification on
Tenant’s covenant not to assign this Lease or enter into or permit any
Sublease; and it is further agreed that Landlord shall not be liable in damages
or subject to liability of any kind or nature whatever by reason of Landlord’s
failure or refusal to grant its consent to any proposed assignment of this
Lease or Subleasing of the Demised Premises, the sole and exclusive recourse
being a declaratory judgment on the question of Landlord’s reasonableness.  Notwithstanding anything contained to the
contrary in this Section 16.10, Landlord agrees that if a final
unappealable judgment has been entered against Landlord by a court of competent
jurisdiction stating that Landlord unreasonably failed or refused to grant its
consent to any proposed assignment of this Lease or subletting of all or any
part of the Demised Premises, then, in such case, Landlord shall be liable in
damages, but only to the extent said damages are actual, direct, foreseeable,
proximate and compensatory.

 

16.11       It is a
condition to the effectiveness of any assignment that the assignee shall
execute, acknowledge and deliver to Landlord an agreement in form and substance
reasonably satisfactory to Landlord whereby the assignee assumes all
obligations of Tenant under this Lease, and agrees that the provisions of this Article shall
continue to be binding upon it in respect of all future assignments of this
Lease.  No assignment of this Lease shall
release the assignor or any guarantor or obligor hereof from its continuing
obligations to Landlord under this Lease or any renewals extensions or
modifications thereof, except as expressly herein provided, and Tenant its
guarantors and obligors and any subsequent assignor shall continue to remain
jointly and severally liable for all of

 

28

 

Tenant’s
obligations hereunder.

 

16.12       Tenant, at its
expense, covenants to obtain all permits, approvals and certificates of
occupancy required by any Governmental Authority for any work or in connection
with any assignment of this Lease or any Sublease and any alterations to the
Demised Premises in connection therewith, and Tenant shall deliver copies of
the same to Landlord prior to the commencement of work, if work is to be done,
and prior to the occupancy of any or all of the Demised Premises by the
assignee or Sublessee.  All such
alterations shall be in strict compliance with Article 13 hereof.  Tenant shall submit a duplicate original
counterpart of the assignment or Sublease to Landlord within five (5) business
days of the date of execution.

 

16.13       If Landlord
withholds its consent to any proposed assignment or Sublease as permitted in
this Article, or if Landlord exercises Landlord’s Recapture Right under Section 16.4
hereof, Tenant shall indemnify, defend and hold harmless Landlord against and
from all loss, liability, damage, reasonable cost and expense (including
reasonable attorneys’ fees and disbursements) resulting from any claims that
may be made against Landlord by the proposed assignee or Sublessee or by any
brokers or other persons claiming a commission or similar compensation in
connection with the proposed assignment or Sublease.

 

16.14       If Landlord
consents to any proposed assignment or Sublease and Tenant fails to consummate
the assignment or Sublease to which Landlord consented within ninety (90) days
after the giving of such consent, Tenant shall be required again to comply with
all of the provisions and conditions of this Article before assigning this
Lease or Subleasing all or part of the Demised Premises.

 

16.15       The joint and
several liability of the named Tenant and any immediate or remote successor in
interest of the named Tenant for the due performance and observance of all
covenants and conditions to be performed and observed by Tenant hereunder shall
not be impaired by any agreement of Landlord or Managing Agent extending the
time for such performance or observance or by Landlord or Managing Agent’s
waiving or failing to enforce any provision of this Lease.

 

16.16       The listing of
any name other than that of Tenant or any permitted assignee or Sublessee on
any door of the Demised Premises or on any directory or in any elevator in the
Building or otherwise shall not operate to vest in the person so named any
right or interest in this Lease or in the Demised Premises or the Building, or
be deemed to constitute, or serve as a substitute for, any prior consent
required under this Article.

 

16.17       If this Lease
is assigned, or if the Demised Premises or any part thereof is subleased,
Landlord may, after an Event of Default, collect rent directly from the
assignee or Sublessee and apply the net amount collected to the rent herein
reserved; but no such assignment, Subleasing or collection shall be deemed a
waiver of this covenant or the acceptance of the assignee or Sublessee as a
tenant, or a release of Tenant from the further performance by Tenant of any of
the covenants on the part of Tenant contained herein, and no such collection of
rent by Landlord shall be characterized as a termination, cancellation or
modification of this Lease, unless Landlord so notifies Tenant in writing.

 

16.18       Any provisions
of this Article to the contrary notwithstanding, but subject to the other
terms, conditions and provisions contained in said Article, including, but not
limited to, Section 16.3 hereof:

 

29

 

(a)                              Tenant shall
have the right, without the consent of Landlord, free of Landlord’s Recapture
Right and without having to pay Landlord any Profit, but after Landlord’s
receipt of Tenant’s Transfer Notice, to assign this Lease or sublease all or
any part of the Demised Premises to any legal entity controlling, controlled by
or under common control with Tenant; provided, however, no such assignee shall
further assign this Lease or sublease any or all of the Demised Premises and no
such Sublessee shall assign or encumber its Sublease or further sublease all or
any part of the Demised Premises; and provided, further, that any event
resulting in such assignee or Sublessee ceasing to be an entity controlling,
controlled by or under common control with Tenant shall be deemed to be an
assignment or Sublease requiring the prior consent of Landlord pursuant to the
provisions of this Article and Tenant shall thereupon comply with all
provisions of this Article applicable thereto. 
For purposes hereof, “control” means ownership of at least fifty-one
percent (51%) of the issued and outstanding voting stock of such entity if it
is a corporation or at least fifty-one percent (51%) of the equitable or voting
interests of such entity if it is not a corporation.

 

(b)                                 Tenant shall
also have the right, without the consent of Landlord, free of Landlord’s
Recapture Right and without having to pay Landlord any Profit, but after
Landlord’s receipt of Tenant’s Transfer Notice, to assign this Lease to any
corporation succeeding to Tenant by merger or consolidation in accordance with
applicable statutory provisions for merger or consolidation of corporations or
by purchase of all or substantially all of Tenant’s stock or assets; provided,
however, subsequent to such merger, consolidation or purchase, the shareholder’s
equity (capital stock, additional paid-in capital and retained earnings) of the
successor corporation or the purchasing corporation, as the case may be, shall
be at least Five Million and 00/100 Dollars ($5,000,000.00) exclusive of good
will and other intangible assets and this fact shall be so certified by the
chief financial officer of the assignor and the assignee.

 

(c)                                  It is Landlord’s
intent to permit assignment and Subleasing pursuant to this Section exclusively
as an accommodation to the bona fide and legitimate business organizational
needs of Tenant, and notwithstanding the provisions hereof, no assignment of
this Lease or Subleasing of all or any part of the Demised Premises without
Landlord’s consent hereunder shall be permitted where the sole or primary
purpose of such assignment or Subleasing is to permit occupancy of all or any
part of the Demised Premises by a third party in avoidance of Landlord’s
consent, or in the case of a corporation’s purchasing all or substantially all
of Tenant’s stock or assets, where this Lease constitutes all or a substantial
portion of Tenant’s assets.

 

(d)                                 Tenant shall
promptly give Landlord prior written notice of any assignment of this Lease or
Subleasing as required under this Section accompanied by all documentation
reasonably required by Landlord to establish compliance with the requirements
of subsections (a) and (b) above, and Tenant shall also promptly provide
Landlord with a copy of any executed instrument of merger, consolidation or
assignment or the executed Sublease, as the case may be.

 

17.                               NOTIFICATION
BY TENANT

 

17.1                          Tenant shall
inform Landlord or its Managing Agent promptly in case of fire or accident
within the Demised Premises or elsewhere upon the Real Estate if involving
Tenant, any Sublessee, or the employees or Visitors of either, or if Tenant has
actual knowledge of such fire or accident.

 

30

 

18.                               RULES
AND REGULATIONS

 

18.1                          Tenant, for
itself and for any Sublessee and their employees and Visitors, covenants to
comply with the Rules and Regulations. 
Landlord and Managing Agent shall have the right to make reasonable
additions and amendments to the Rules and Regulations from time to time, and
Tenant, on behalf of itself, any Sublessee and their employees and Visitors,
agrees to comply with such additions and amendments after deliveries of copies
thereof to Tenant or the posting of copies thereof in a prominent place in the
Building.  Landlord shall not apply any of
the Rules and Regulations against Tenant on a discriminatory basis, it being
understood and acknowledged by Tenant that: 
(a) its specific use of the Demised Premises may be the predicate for
Landlord promulgating and enforcing reasonable Rules and Regulations against
Tenant that may be applicable only to Tenant and no other tenant or occupant of
the Building; and (b) Landlord’s failure to apply or enforce a rule against a
tenant whose lease does not give or provide Landlord with a right to enforce or
apply the rule against that tenant shall not be deemed to be an application of
that rule on a discriminatory basis should Landlord apply that rule to or
against Tenant.

 

19.                               PEACEABLE
ENJOYMENT

 

19.1                          Subject to the
terms and provisions of this Lease and to all mortgages and ground leases of
record to which this Lease may be or may become subordinate, Tenant, upon
timely payment of all Minimum Rent, Adjusted Minimum Rent, additional rent and
other monies due and payable by Tenant hereunder, and upon Tenant’s observing,
keeping and performing all of the other terms and provisions of this Lease,
shall lawfully, peaceably and quietly have, hold, occupy and enjoy the Demised
Premises during the term hereof.

 

20.                               SURRENDER

 

20.1                          Upon the last
day of the term of this Lease, or the sooner termination thereof, Tenant shall
quit and surrender the Demised Premises to Landlord in as good order, condition
and repair as received by Tenant on the Commencement Date, except for ordinary
wear and tear, insured fire or other insured casualty, condemnation or eminent
domain and those particular repairs which this Lease expressly requires
Landlord to perform; and the Demised Premises and the remainder of the Real
Estate shall be free of any and all hazardous substances, wastes or conditions
and shall be in compliance with all applicable Laws of any Environmental
Authority with respect to any hazardous substances or wastes for which Tenant
is responsible hereunder or pursuant to any Law.

 

20.2                          Prior to or
upon the expiration or sooner termination of this Lease, Tenant, at its own
cost and expense, shall remove from the Demised Premises all trade fixtures,
partitions, equipment, personal property, or other improvements required to be
removed from the Demised Premises pursuant to Article 13 hereof without injury
to the Demised Premises.  All such
property that is not removed from the Demised Premises prior to the expiration
or sooner termination of this Lease shall be, at the election of Landlord and
with absolutely no liability whatsoever to Tenant or any Sublessee,
either:  (a) retained or disposed of by
Landlord as its own property without any obligation whatsoever to Tenant or any
Sublessee; or (b) removed from the Demised Premises and disposed of by any
means whatsoever by Landlord, at Tenant’s sole cost and expense.

 

20.3                          Tenant’s
obligation to observe the covenants contained in this Article shall survive the
expiration or sooner

 

31

 

termination
of this Lease.

 

20.4                          Notwithstanding
anything to the contrary contained herein, if the last day of the term of this
Lease or any renewal or extension thereof falls on Sunday, this Lease shall
expire at noon the preceding Saturday; if the last day of the term of this
Lease or any renewal or extension thereof falls on a Legal Holiday, this Lease
shall expire at noon on the preceding business day.

 

21.                               HOLDING
OVER

 

21.1                          Tenant shall
pay Landlord one hundred fifty percent (150%) of the fair market rental value
of the Demised Premises, as reasonably determined by Landlord [but in no event
less than one hundred fifty percent (150%) of the Adjusted Minimum Rent then
applicable under the Lease], for each month or partial month during which
Tenant or any Sublessee retains possession of the Demised Premises, or any part
thereof, after the expiration or earlier termination of this Lease.

 

21.2                          Nothing
contained in this Lease, nor the paying by Tenant and acceptance by Landlord or
Managing Agent of holdover rent, nor any verbal consent by anyone, nor any
detrimental reliance by Tenant or any Sublessee, shall be construed as a
consent by Landlord to the occupancy or possession by Tenant or such Sublessee
of the Demised Premises or any portion thereof beyond the Expiration Date or
sooner termination of the term hereof, unless consented to in writing by
Landlord in its sole discretion. 
Landlord, upon the Expiration Date or sooner termination of the term
hereof, shall also be entitled to consequential damages and to the benefit of
all other available legal remedies for summary possession of the Demised
Premises.

 

22.                               INDEMNITY

 

22.1                          Tenant shall be
liable for the acts and omissions of Tenant, its Sublessee(s) and any Visitors
with respect to the Real Estate.  In
accordance therewith, Tenant shall defend, indemnify and hold harmless
Landlord, its directors, officers, partners, employees, shareholders and agents
and their predecessors in interest and successors and assigns against and
from:  (a) any and all claims (1) arising
from the conduct of Tenant or any Sublessee, or the employees or Visitors of
either, or of any business or any work or thing whatsoever done to the Demised
Premises by Tenant, its Sublessee(s) or any Visitors or any condition created
by Tenant, its Sublessee(s) or any Visitors in or about the Demised Premises
during the term of this Lease, except to the extent due to the negligence or
willful misconduct of Landlord or its agents, employees and contractors, or (2)
arising from any negligent or willful misconduct of Tenant or any Sublessee, or
the employees or Visitors of either; (b) any failure by Tenant or any Sublessee
to comply with the provisions of this Lease; (c) all actual out-of-pocket
costs, expenses and liabilities incurred by Landlord in connection with each
such claim or action or proceeding brought thereon, including, but not limited
to, all reasonable legal fees and expenses; and (d) any damages suffered by
Landlord due to the holding over in the Demised Premises by Tenant or any
Sublessee beyond the expiration or sooner termination of this Lease.

 

22.2                          In case any
action or proceeding shall be brought against Landlord or any of the foregoing
indemnitees by reason of any such claim, Tenant, upon notice from Landlord,
shall resist and defend such action or proceeding with counsel previously and
reasonably approved by Landlord.

 

22.3                          Landlord shall
indemnify, defend and hold Tenant harmless from any loss caused by the
negligence or willful

 

32

 

misconduct
of Landlord or its agents, employees and contractors.

 

23.                               LANDLORD’S
WORK

 

23.1                          The work that
Landlord is required to undertake under this Article to make the Demised
Premises ready for Tenant’s initial occupancy is hereinafter referred to as “Landlord’s
Work”.

 

23.2                          Intentionally
Deleted Prior To Execution

 

23.3                          Tenant agrees
that on or before the Date of Lease, Tenant shall either approve Landlord’s
drawings or provide to Landlord detailed and complete drawings and
specifications in form and content reasonably acceptable to Landlord for Tenant’s
layout, partitioning, electrical, floor covering, painting and other
installations in the Demised Premises. 
Landlord, at its cost and expense, shall furnish and install in
accordance with drawings and specifications that have first been approved in
writing by Landlord, which approval shall not be unreasonably withheld, delayed
or conditioned (“Approved Drawings”) only so much
of the work required by Tenant by the Approved Drawings as is allowed by a
credit to Tenant equal to the Construction Credit.  The Construction Credit may only be applied
towards Landlord’s Work in accordance with the Approved Drawings.  If any portion of the Construction Credit is
not so used by Tenant on or prior to the Commencement Date, any excess shall be
forfeited and shall not be used as a credit against Minimum Rent or any other
sums due Landlord hereunder.  To the
extent Tenant’s drawings require work, the cost of which exceeds the
Construction Credit, such work shall be reduced to an “extra” or “change order”
to be executed by both Landlord or Managing Agent and Tenant, which shall
Indicate the work required, the cost thereof to be paid by Tenant as additional
rent, within ten (10) days after Landlord’s demand, and the additional time
required, if any, for completion.  The cost
of work performed under this Article 23 shall be subject to Landlord’s
reasonable and customary mark-up, overhead, profit and general conditions.

 

23.4                          Tenant shall be
responsible for any delays on the part of itself or any of its employees or
Agents in completing the Demised Premises by reason of:  (a) failure of any of them to reasonably
cooperate with Landlord; (b) delays in submitting any drawings or
specifications, or in supplying information, or in approving drawings,
specifications or estimates; (c) delays in Tenant’s giving authorizations; (d) any
extra or change order desired by Tenant; (e) any changes by any of them in any
plans or designations subsequent to the Tenant Drawing Date; (f) any similar
act or omission of any of them; or (g) any other similar causes or factors
beyond Landlord’s reasonable control. 
Landlord shall notify Tenant whether Substantial Completion is being
delayed by any of the reasons set forth in this Section.

 

23.5                          Subject to
those tenancies and occupancies, if any, permitted, introduced or caused by
Tenant on or before the Commencement Date, Landlord agrees that, as of the
Commencement Date, the sole tenant and occupant of the Demised Premises shall
be Tenant or any permitted Sublessee or permitted assignee of Tenant’s interest
under this Lease for whom Landlord has granted its written consent to the
extent such written consent is required by Article 16 hereof.  As of the date by when Substantial Completion
has occurred, the Demised Premises (subject to Tenant’s acts and omissions)
shall be serviced by Building standard systems, utilities and one (1) or more
utility meters in working order and condition.

 

23.6                          Landlord’s Work
shall be performed in a workmanlike manner in accordance with laws in effect at
the time

 

33

 

of
Substantial Completion.  Provided (i) there
is no Event of Default under this Lease and (ii) Tenant submits to Landlord, on
the date Tenant is requested to inspect Landlord’s Work with Landlord’s
representative, a punch-list approved in writing by Landlord (which approval
shall not be unreasonably withheld, delayed or conditioned), then, Landlord
shall correct the items on said approved punch-list.  Tenant agrees to accept Landlord’s Work in
its physical condition and state of repair as of the date on which Landlord’s
Work is Substantially Completed, except as to structural defects, which
Landlord shall repair at no cost to Tenant, provided:  (1) Tenant notifies Landlord in writing of
said structural defect with specificity by no later than the later to occur of (a)
the date falling five (5) days after Tenant actually discovers said structural
defect or (b) the date falling five (5) days after Tenant should have
discovered said structural defect had Tenant been reasonably observant; (2) Landlord
receives the written notice described in subsection (1) hereof by no later than
one (1) year after the date on which Landlord’s Work has been Substantially
Complete; and (3) there is no Event of Default under this Lease.

 

23.7                          Using Building
standard construction procedures, systems and methodologies, Landlord shall
arrange for certain trade work components of Landlord’s Work to be
competitively bid.  After Landlord
receives written notice from Tenant requesting that Landlord make available for
Tenant’s inspection a particular trade work bid, Landlord shall:  (i) make such bid available for Tenant’s
inspection in Landlord’s office during business hours that are mutually
acceptable to Landlord and Tenant; and (ii) consult with Tenant to solicit its
opinion regarding the acceptability of such bid.

 

23.8                          Using Building
standard means, methods, materials and manpower, Landlord shall perform the
work described on Exhibit F attached hereto and made a part hereof.  Subject to force majeure, acts of God,
circumstances beyond the reasonable control of Landlord, Laws, acts of Tenant
and/or omissions of Tenant, the work described on Exhibit F shall be completed
by December 31, 2004.

 

23.9                          Using Building
standard means, methods, materials and manpower, Landlord, at its cost, shall
replace once the ceiling tiles of the Demised Premises that are damaged as of
the Date of Lease.  Subject to force
majeure, acts of God, circumstances beyond the reasonable control of Landlord,
Laws, acts of Tenant and/or omissions of Tenant, said replacement work shall be
completed by September 30, 2004.

 

24.                               SERVICES
TO BE PROVIDED BY LANDLORD

 

24.1                          Subject to the
other provisions hereof, Landlord shall maintain in good working order and
repair, the exterior and the structural portions of the Building, including the
structural portions of the Demised Premises, the common portions of the
Building interior and the Building plumbing, electrical, mechanical and HVAC
systems, including those Building systems serving the Demised Premises.  Such services shall be included in Operating
Costs.  Tenant agrees to give prompt
notice to Landlord or Managing Agent of any condition in the Demised Premises
in need of repair.  Subject to force
majeure events, acts of God, causes or factors beyond Landlord’s reasonable
control, Laws, directives of Governmental Authorities and Landlord’s reasonable
Rules and Regulations, Tenant shall have seven (7) day a week, twenty four (24)
hour a day access to the Demised Premises.

 

24.2                          Landlord shall
provide the following services to Tenant, the cost of which services shall be
included in Operating Costs:

 

34

 

(a)                                  Public elevator
service on business days from 8 a.m. to 6 p.m. and one (1) elevator subject to
call at all other times.

 

(b)                                 Subject to Article
26 hereof, HVAC to the Demised Premises and the Building.

 

(c)                                  Water for
ordinary lavatory purposes; provided, however, if Tenant uses or consumes water
for any other purposes or, in Landlord’s reasonable opinion, in quantities per
square foot of Demised Premises which are in excess of the Building average,
Landlord may install a water meter at Tenant’s cost and expense to register
such water consumption, and Tenant shall thereafter maintain the water meter in
good working order and repair and shall be obligated to pay Landlord, as
additional rent, for water consumed as shown on said meter.

 

(d)                                 Subject to the
Cleaning Service Rider and Article 27 hereof, cleaning service for the Demised
Premises and for the common areas of the Building.

 

(e)                                  The listing of
Tenant’s name on two (2) lines of the Building lobby directory; provided that
any changes to Tenant’s listing on said directory or any other directory in the
Building or on the remainder of the Real Estate shall be:  (1) in conformity with Landlord’s Building
standard design; (2) prepared by Landlord and at Tenant’s expense, if
subsequent to the Commencement Date; and (3) for Tenant named in Article 1
hereof or such Sublessee or assignee permitted in strict compliance with Article
16 hereof.

 

24.3                          Landlord
reserves the right to temporarily stop any of the services to be provided
hereunder when reasonably necessary by reason of accident or emergency, or for
repairs, alterations, replacements or improvements which Landlord, in its
reasonable discretion, may deem necessary or desirable, without same affecting
Tenant’s obligations hereunder.  However,
Landlord shall use reasonable efforts to minimize the scope and duration of any
such interruptions and promptly restore the interrupted service(s).

 

25.                               ELECTRICITY

 

25.1                          Landlord’s
obligation to supply electric current shall be limited to the current required
to power the Building standard HVAC systems, elevators, and the lighting of
common areas of the Building and the Real Estate, the costs of which shall be
included in Operating Costs.

 

25.2                          Tenant shall
arrange with the appropriate utility to purchase and pay for all of the
electric current requirements for light and power used in connection with
Tenant’s use and occupancy of the Demised Premises, including all electrical
power for Tenant’s office equipment and for any special electrical or
mechanical equipment serving only the Demised Premises.  As part of Landlord’s Work, Landlord shall
furnish and install an electric meter for the measurement of the consumption of
Tenant’s electric current as herein provided.

 

25.3                          Tenant shall in
a timely manner execute any and all forms or applications for electric service,
and shall provide any security required by the local utility company supplying
electric current to the Building for the metering of all electric current and
power required for the operation of the electrical equipment of any nature
whatsoever and lights within the Demised Premises.

 

25.4                          Intentionally
Deleted Prior To Execution

 

35

 

25.5                          Tenant shall
not bypass or otherwise adversely affect the proper operation of any electrical
or other utility meter.

 

25.6                          The electrical
transmission facilities servicing the Demised Premises as of the Date of Lease
are sufficient to service the Demised Premises with five (5) watts of
electricity per rentable square foot (exclusive of HVAC) covering Tenant’s
ordinary business needs for lighting and the operation of Tenant’s business
machines, including, without limitation, photocopy equipment and computer and
data equipment.

 

26.                               HEATING,
VENTILATION AND AIR CONDITIONING

 

26.1                          Landlord shall
provide and furnish Building HVAC to the Demised Premises and the Building
between the hours of 8:00 a.m. to 6:00 p.m., Monday through Friday, other than
Legal Holidays.  Any special HVAC
requirements of Tenant shall be at Tenant’s sole cost and expense.

 

26.2                          At all other
times not otherwise provided for in Section 26.1 above, Landlord agrees that it
shall provide after-hours HVAC, upon written or telephone request from Tenant
at least two (2) business hours in advance of such extra hours of operation,
stating the hours of operation desired, for which Tenant shall pay to Landlord
as additional rent hereunder, a sum equal to Sixty-Five Dollars ($65.00) per
hour per floor or portion thereof, for providing HVAC, that charge being
intended to cover Landlord’s cost for providing same.  If during the term of this Lease, or any
renewal hereof, Landlord’s cost for providing after-hours HVAC shall increase
by virtue of utility rate increases or fuel coat increases or wage increases,
the above-specified hourly charge shall be adjusted from time to time to
reflect said increases on a uniform Building-wide basis.  In addition to the foregoing, should there be
any charges incurred by Landlord for attendant engineers or for similar
additional requirements as may be imposed from time to time by any Governmental
Authority, collective bargaining agreement or the like, Tenant agrees to
reimburse Landlord for its actual out-of-pocket expenses incurred in connection
therewith, related to the after-hours service requested by Tenant.

 

27.                               CLEANING
SERVICES

 

27.1                          Landlord shall
maintain the grounds, common areas and Parking Areas, and such other cleaning
services within the Demised Premises as are set forth on the Cleaning Service
Rider.

 

27.2                          Tenant
acknowledges that Landlord’s obligation to cause the office area of the Demised
Premises to be cleaned excludes any portions of the Demised Premises not used
as office areas (e.g., closets, storage rooms, mailrooms, computer areas,
laboratories, private lavatories and areas used for the storage, preparation,
service or consumption of food or beverages). 
Tenant shall pay directly to Landlord the actual, out-of-pocket and
reasonable cost of removal from the Demised Premises of any of Tenant’s refuse
or rubbish, including large cartons or other containers or refuse, in excess of
that generated from the day-to-day operation of an executive and administrative
office of Tenant’s size; and Tenant, at Tenant’s expense, shall cause all
portions of the Demised Premises not used as office areas to be cleaned daily
in a manner and by a person or entity reasonably satisfactory to Landlord.  Tenant, at Tenant’s expense, also shall cause
any portions of the Demised Premises used for the storage, preparation, service
or consumption of food or beverages to be exterminated against infestation by
vermin, rodents, bugs and insects both on a regular basis and whenever there
shall be evidence of any infestation.

 

36

 

27.3                          Tenant shall
contract directly with Landlord or, at Landlord’s option, directly with
Landlord’s contractors, for the removal of garbage, excess refuse and rubbish,
for cleaning services in excess of those furnished by Landlord, and for the
extermination services required hereunder, provided that the costs thereof are
commercially competitive.

 

28.                               LANDLORD’S
ACCESS TO DEMISED PREMISES AND ALTERATIONS

 

28.1                          (a)                                   Landlord or
Landlord’s employees or agents, shall have the right to enter and/or pass
through the Demised Premises or any part thereof, at reasonable times during
reasonable hours with reasonable prior oral or written notification, as
determined by Landlord (or in the event of an emergency, at any time without
prior notification of any kind whatsoever): 
(1) to examine the Demised Premises and to show them to the holders of
mortgages or prospective purchasers, mortgagees or lessees of the Building; (2)
for the purpose of making such repairs or changes in or to the Demised Premises
or its facilities, as may be provided for by this Lease or as may be mutually
agreed upon by the parties or as Landlord may be required to make by Law or in
order to repair, maintain or improve the Demised Premises or any other portion
of the Building or its fixtures or facilities; and (3) during the last nine (9)
months of the term of this Lease, for the purposes of showing the Demised
Premises to prospective tenants. 
Notwithstanding anything contained to the contrary in this Section 28.1(a),
Landlord shall not be required to give Tenant prior notification of any kind
whatsoever before entering the Demised Premises for the purpose of performing
janitorial service, recurring maintenance and/or routine repairs.  Tenant shall permit Landlord to use,
maintain, replace and improve pipes, conduits and supports in and through the
Demised Premises and to erect new pipes and conduits and structural members therein
or therethrough, provided such new installations are concealed within walls,
floors, or ceilings.  Landlord may,
during the progress of any work in or about the Demised Premises, take all
necessary materials and equipment therein or through the Demised Premises
without the same constituting an eviction.

 

(b)                                  If Tenant is not present to
open and permit an entry into the Demised Premises, Landlord or Landlord’s
employees or agents may enter the same whenever such entry may be necessary or
permissible by master key or forcibly and, provided reasonable care is
exercised to safeguard Tenant’s property, such entry shall not render Landlord
or its employees or agents liable therefor, nor in any event shall the
obligations of Tenant hereunder be affected.

 

28.2                          Landlord, its
agents and employees shall have the right at any time, without the same
constituting an eviction and without incurring liability to Tenant
therefor:  (a) to change the arrangement
and/or location of public entrances, passageways, doors, doorways, corridors,
elevators, stairs, toilets or any other public parts of the Building; (b) to
make repairs, alterations or improvements to any portion of the Building; (c) to
perform any work that may be necessary to comply with any Laws of any
Governmental Authority having jurisdiction over the Demised Premises or the
Building or to prevent waste or deterioration of the Demised Premises or the
Building; (d) to change the name, number or designation by which the Building
may be known; or (e) to change any lawns, sidewalks, driveways, Parking Areas
or streets adjacent to or around the Building, provided reasonable access to
the Building is maintained.

 

28.3                          Landlord shall
use reasonable efforts to minimize its disturbance of Tenant in undertaking the
activities described in this Article in or adjacent to the Demised Premises,
and

 

37

 

Landlord
shall not be liable to Tenant by reason of any inconvenience, annoyance or
injury to  business
arising from any of the aforementioned alterations, additions and improvements.

 

29.                               LIMITATION
OF LIABILITY

 

29.1                          Notwithstanding
anything to the contrary contained herein, each and every term, covenant,
condition and provision of this Lease, is hereby made specifically subject to the
provisions of this Article.

 

29.2                          The term “Landlord” as used in this Lease means only the current
Landlord or Building Lessor, so that in the event of any conveyance of such
interest and the transfer to the transferee of any funds then being held under
this Lease by Landlord, upon notice to Tenant thereof, such Landlord shall be
and hereby is entirely freed and relieved of any and all obligations of
Landlord hereunder thereafter accruing, and the transferee shall be and hereby
is deemed to have assumed all of the obligations of Landlord hereunder.  The foregoing provision shall be
self-operative and shall be deemed to occur automatically without further
agreement between Landlord and Tenant.

 

29.3                          It is further
specifically understood and agreed that notwithstanding anything to the
contrary contained herein or otherwise provided at Law or in equity, there
shall be absolutely:  (a) no liability
whatsoever to Landlord or any lessor of the Land (a “Land Lessor”)
in excess of either’s interest in the Real Estate, (whether any of the
foregoing be an individual, proprietorship, corporation, joint venture, tenancy
in common, firm, partnership or other entity); (b) no personal liability
whatsoever on the part of the members of any firm, proprietorship, partnership,
joint venture or other unincorporated Landlord or Land Lessor with respect to
any of the terms, covenants and/or conditions of this Lease; and (c) no
personal liability on the part of any director, officer, or employee of any
Landlord or Land Lessor.  In the event of
a breach or default by Landlord of any of its obligations under this Lease or
any claim or suit in respect of this Lease or the Demised Premises or the Real
Estate or any portion thereof, Tenant shall look solely to the then Landlord
for the satisfaction of each and every remedy of Tenant, and no judgment shall
be entered against any individual, director, officer, employee, partner,
proprietor or joint venturer of Landlord or Land Lessor or any of their
predecessors in interest or successors in interest, such exculpation of
personal and additional liability which is in excess of such person’s or
partnership’s interest in the Real Estate to be absolute and without any
exception whatsoever.

 

29.4                          If at any time
any windows of the Demised Premises are temporarily closed, darkened, blocked
or bricked up (or permanently closed, darkened, blocked or bricked up, if
required by Law or if absolutely necessary in connection with any improvements
to the Real Estate) for any bonafide and legitimate reason, Landlord shall not
be liable for any damage Tenant may sustain thereby; and Tenant shall not be
entitled to any compensation therefor nor abatement or diminution of rent nor
shall the same release Tenant from its obligations hereunder, nor constitute an
eviction or partial eviction.

 

29.5                          Landlord shall
not be liable for failure to furnish any services or take any other action
required to be provided by it hereunder by reason of conditions beyond Landlord’s
reasonable control, nor for consequential damages arising therefrom.  There shall be no allowance to Tenant for
diminution of rental value and no liability on the part of Landlord or its
employees or agents by reason of inconvenience,

 

38

 

annoyance
or injury to business arising from Landlord or others making repairs,
alterations, additions, improvements or installations in or to any portion of
the Building or the Demised Premises or in and to the fixtures, appurtenances
or equipment thereof.  Tenant agrees that
Tenant’s sole remedy at law in such instance will be by way of an action for
damages for breach of contract.  The
provisions of this Article shall not apply in the case of fire or other
casualty which are not the responsibility of Tenant and which shall be governed
by Article 31 hereof.

 

30.                               PROPERTY
LOSS;  DAMAGE;  INSURANCE

 

30.1                          Tenant and any
Sublessee, at their sole cost and expense, shall procure, provide and maintain
in force during the term of this Lease, “All Risk” insurance, to be written by a
good and solvent insurance company qualified to write insurance in the State of
New Jersey, reasonably satisfactory to Landlord or Managing Agent, and having a
policyholders’ rating of no less than A+ XV as determined by the AM Best
Company, or any successor thereto, which shall cover Tenant’s (or Sublessee’s)
personal property, equipment and improvements in the Demised Premises or
elsewhere on the Real Estate against loss or damage by theft, vandalism, fire
and any other hazards or casualties in an amount sufficient to provide for the
actual replacement cost thereof.  Neither
Landlord nor its employees or agents shall be obligated to make any repair or
reimburse Tenant for any act or loss to be covered by the insurance required
hereunder.

 

30.2                          Landlord or its
contractors or agents shall not be liable for any loss of or damage to any
property of Tenant or of others whatsoever, whether by reason of theft,
burglary or otherwise, nor for any injury or damage to persons or property
resulting from any cause of whatsoever nature, except to the extent determined
to be due to the negligence or willful misconduct of Landlord or its agents,
employees and contractors.  Landlord and
its employees and agents shall not be liable for any such damage caused by
other tenants or persons in, upon or about the Real Estate or caused by
construction or operations of any private, public or quasi-public work.

 

30.3                          Should Tenant
or any Sublessee be self-insured for all or any portion of any loss or damage
to its property, or should Tenant’s or any Sublessee’s insurer be unwilling or
unable to compensate Tenant or such Sublessee in full for such damage. Tenant
and all such Sublessees shall be deemed to have released and waived all right
of recovery for such damage against Landlord by Tenant or anyone claiming
through or under Tenant by way of subrogation or otherwise.

 

30.4                          Landlord shall
endeavor to have its cleaning contractors lock all exterior doors to the
Demised Premises and activate simple alarm systems, if any; however, Tenant
covenants to insure against all loss or damage arising out of Landlord’s or its
cleaning contractor’s failure to lock doors or activate alarms, and
notwithstanding anything to the contrary contained herein, neither Landlord nor
its cleaning contractors nor any of their employees or agents shall be held
liable for any loss or damages arising therefrom.

 

30.5                          Tenant and any
Sublessee at its sole cost and expense, shall also procure, provide and
maintain in force during the term of this Lease, comprehensive general
liability insurance, which:  (a) shall be
written by good and solvent insurance companies qualified to write insurance in
the State of New Jersey, reasonably satisfactory to Landlord, and having a
policyholders’ rating of no less than A+ XV as determined by the AM Best
Company, or any successor thereto; (b) shall include coverage for personal
liability, contractual liability, Tenant’s (or Sublessee’s) legal liability,
bodily injury, death and

 

39

 

property
damage, all on an occurrence basis with respect to the business carried on, in
or from the Demised Premises and Tenant’s (or Sublessee’s) use and occupancy of
the Demised Premises; (c) shall provide coverage for any one (1) occurrence or
claim of not less than Two Million and 00/100 Dollars ($2,000,000.00); and
shall insure against such other perils and in such amounts as Landlord or
Managing Agent may from time to time reasonably require upon not less than
ninety (90) days’ prior written notice.

 

30.6                           Each of the
insurance policies required in this Article shall include Landlord, Managing
Agent and any Land Lessor as additional insureds, and shall protect Landlord in
respect of claims by Tenant as if Landlord were separately insured, and contain
an undertaking by the insurer that no material change adverse to Landlord, any
Land Lessor or Tenant (or Sublessee) will be made and such policy will not
lapse or be cancelled, except after not less than thirty (30) days’ prior
written notice to Landlord of the intended change, lapse or cancellation.  Any such notice shall not relieve Tenant of
any of its obligations hereunder.  On or
before the Commencement Date and thereafter, at least thirty (30) days prior to
the expiration date of any policy, Tenant agrees to deliver to Landlord an
original insurance certificate reasonably satisfactory to Landlord; and Tenant
(and any Sublessee) shall further modify such certificates within ten (10) business
days of being notified to reflect any change in Landlord, Land Lessor, or
Managing Agent.

 

30.7                           The
comprehensive general liability insurance required of Tenant under this Lease
may be furnished by Tenant under a blanket policy, so long as and provided that
such policy:  (a) strictly complies with
all the other terms and conditions contained in this Article; and (b) contains
an endorsement that (1) identifies with specificity the particular address of
the Demised Premises, (2) provides a minimum guaranteed coverage amount of Two
Million and 00/100 Dollars ($2,000,000.00) for the Demised Premises and (3) expressly
waives any prorata distribution requirement contained in Tenant’s blanket
policy covering the Demised Premises.

 

30.8                           As an item of
cost included in Operating Costs, Landlord shall procure, provide and maintain
in force during the term of this Lease, an “All Risk” property insurance policy
(including coverage against loss or damage by fire) in an amount not less than
eighty percent (80%) of the estimated replacement cost of the Building
(exclusive of the footings, foundations, tenants’ property, betterments and
those items for which Landlord has no insurable interest).  Landlord may self-insure all or any of the
coverages described in the immediately preceding sentence.  Landlord may also provide said coverage under
a blanket policy.

 

31.          DAMAGES
BY FIRE OR OTHER CASUALTY

 

31.1                           If the Building
or the Demised Premises or any part thereof shall be damaged by fire or other
casualty, Tenant shall promptly inform Landlord or Managing Agent thereof, and
this Lease shall continue in full force and effect, except as hereinafter set
forth.

 

31.2                           Tenant waives
the benefit of N.J.S.A. 46:8-6, and N.J.S.A. 46:8-7 and any similar Law.  Except as specifically provided in this
Article, Tenant agrees that it shall not be relieved of the obligations to pay
Minimum Rent, Adjusted Minimum Rent or any additional rent in case of damage to
or destruction of the Building or any portion thereof.

 

31.3                           If all or a
material portion of the Demised Premises are damaged or rendered unusable by fire
or other

 

40

 

casualty
but the Building is not substantially damaged, and the damages to the Demised
Premises can, in Landlord’s reasonable judgment, be reasonably repaired within
one hundred eighty (180) days of the occurrence of such damage, the damages, to
the extent affecting the tenant installation provided by Landlord, shall be
repaired by and at the expense of Landlord and the rent, until five (5) days
after Tenant receives a written notice from Landlord advising Tenant that the
repairs have been substantially completed, shall abate in proportion to the
area of the Demised Premises which was damaged or unusable by Tenant for so
long as the Demised Premises, or each such portion thereof, is damaged or
unusable, it being the intent that such abatement shall not affect or reduce
Landlord’s rent insurance coverage.  If (i)
Landlord has notified Tenant in writing that, in Landlord’s reasonable
judgment, the damaged or unusable portion of the Demised Premises can be
reasonably repaired within one hundred eighty (180) days of the occurrence of
such damage and (ii) Landlord shall have failed to repair such damage within
one hundred eighty (180) days after the date of such fire or other casualty, as
such one hundred eighty (180) day period shall be extended by the number of
days that Landlord is delayed in completing such restoration by any cause or
factor beyond Landlord’s reasonable control, including, but not limited to,
Tenant’s failure to reasonably cooperate with Landlord, strikes or other labor
disputes, accidents, orders or regulations of any Federal, State, County or
Governmental Authority, delays due to adjustment of insurance claims, lack of
availability of materials, parts or utility services, procuring of applicable
building or construction permits, acts of God, fire, earthquake, floods,
explosion, action of the elements, war, hostilities, invasion, insurrection,
riot, mob violence, sabotage, or by reason of any other cause, whether similar
or not to the foregoing, that is beyond the reasonable control of Landlord
[such one hundred eighty (180) day period as so extended is referred to as the “Restoration Period”], then, in such event, Tenant shall
have a one (1) time option to give Landlord, within ten (10) days next
following the expiration of the Restoration Period, time being of the essence,
a thirty (30) day notice of termination of this Lease; if by the expiration of
said thirty (30) day period Landlord shall have failed to repair such damage,
then, upon expiration of said thirty (30) days, this Lease and the term
thereunder shall end and expire as fully and completely as if the expiration of
such thirty (30) day period were the day herein definitely fixed for the end
and expiration of this Lease and the term thereof and Tenant shall then quit
and surrender the Demised Premises to Landlord but Tenant shall remain liable
as provided in this Lease.  Failure of
Tenant to timely deliver a thirty (30) day notice of termination shall be
conclusively deemed to be an express election by Tenant to waive Tenant’s right
to terminate this Lease as provided in this Section.  Notwithstanding anything to the contrary
herein, Landlord shall not be obligated to repair or restore any personal
property of Tenant or any fixtures or Tenant installation not installed by and
paid for by Landlord.

 

31.4                           If Landlord
repairs and restores the Demised Premises in accordance with Section 31.3
hereof, such repairs and restorations shall be made with all reasonable
expedition.  After any such fire or other
casualty, Tenant shall cooperate with Landlord’s restoration by removing from
the Demised Premises as promptly as reasonably possible and to the extent
reasonably necessary, all of Tenant’s and any Sublessee’s salvageable inventory
and movable equipment, furniture and other property.  Tenant’s liability for rent shall resume five
(5) business days after written notice from Landlord of Substantial Completion
of repairs to the Demised Premises.

 

31.5                           If (A) all or
substantially all of the Demised Premises are damaged or rendered unusable by
fire or other

 

41

 

casualty,
or (whether or not the Demised Premises are damaged in whole or in part) if the
Building shall be substantially damaged so that Landlord in its reasonable
opinion, cannot rebuild both the Demised Premises and the Building to their
pre-existing condition within one hundred eighty (180) days of the occurrence
of such damage, or (B) all or substantially all of the Demised Premises are
damaged or rendered unusable by fire or other casualty after the Date of Lease
but before the Estimated Commencement Date or (C) all or substantially all of
the Demised Premises are damaged or rendered unusable by fire or other casualty
during the last year of the Initial Term, then, in either of such events,
either Landlord or Tenant may elect to terminate this Lease by written notice
to the other within sixty (60) days after the date of damage, specifying a date
for the expiration of this Lease, which date shall not be more than one hundred
eighty (180) days after such fire or other casualty, and upon the date
specified in such notice the term of this Lease shall expire as fully and
completely as if such date were the Expiration Date and Tenant shall forthwith
quit, surrender and vacate the Demised Premises without prejudice however, to
Landlord’s rights and remedies against Tenant under this Lease provisions in
effect prior to such termination; and any rent owing shall be paid up to such
date and any payments of rent made by Tenant which were on account of any
period subsequent to such date shall be credited against amounts owed by Tenant
to Landlord or refunded to Tenant.  The
terms of this Section shall survive the expiration or earlier termination of
this Lease.

 

31.7                           Notwithstanding
anything to the contrary contained in this Article or any Law, should the
Demised Premises or the Building be damaged by fire or other casualty as a
result of the negligence of Tenant or any Sublessee or any employee, Agent or
Visitor of either, and as a result thereof, Landlord does not collect adequate
insurance proceeds to fully restore the Demised Premises, Tenant shall have no
right to terminate this Lease and there shall be no abatement of rent under
this Article, except to the extent of any available rent insurance proceeds and
Tenant shall be liable to Landlord for any such deficiency, subject to the
other provisions hereof.

 

32.          WAIVER
OF SUBROGATION

 

32.1                           Notwithstanding
any other provision herein, Landlord and Tenant shall look first to any
insurance in its favor before making any claim against the other party for
recovery for loss or damage resulting from fire or other casualty, and to the
extent that such insurance is in force and collectible and to the extent
permitted by Law, Landlord and Tenant each hereby releases and waives all right
of recovery against the other or any one claiming through or under each of them
by way of subrogation or otherwise.  The
foregoing release and waiver shall be in force only if both Landlord and Tenant
obtain their insurance required hereunder and only if both of their insurance
policies contain a clause providing that such a release or waiver shall not
invalidate the insurance.  If, and to the
extent that such waiver can be obtained only by the payment of additional
premiums, then the party benefiting from the waiver shall pay such premium
within ten (10) business days after written demand from the other party or
shall be deemed to have agreed that the party obtaining insurance coverage
shall be free of any further obligation tinder the provisions hereof with
respect to waiver of subrogation.

 

33.          EMINENT
DOMAIN

 

33.1                           If all or
substantially all of the Demised Premises or the Building or a substantial
portion of the Land should be acquired or condemned by eminent domain by any
Governmental Authority, then Landlord or Tenant may terminate

 

42

 

this
Lease as of the date when title vests pursuant to such taking.  In such event, the rent shall be apportioned
as of said date and any rent paid for any period beyond said date and in excess
of amounts owing by Tenant to Landlord shall be repaid to Tenant.  The terms of this Section shall survive the
expiration or earlier termination of this Lease.

 

33.2                           In the event of
a taking of less than all or substantially all of the Demised Premises,
Landlord shall have the right to equitably reduce the Demised Premises, Tenant’s
Occupancy Percentage, the Minimum Rent and the Allotted Parking, and this Lease
shall continue in full force and effect. 
Notwithstanding the foregoing, Tenant shall have the right to terminate
this Lease if the area of the Demised Premises shall not be reasonably
sufficient for Tenant to continue feasible operation of its business.

 

33.3                           Landlord or
Tenant may exercise its respective right(s) to terminate this Lease under Section
33.1 or 33.2 hereof by giving written notice to the other within thirty (30)
days after the date of the vesting of title in such proceeding, specifying a
date not more than sixty (60) days after the giving of such notice as the date
for such termination.

 

33.4                           Neither Tenant
nor any Sublessee shall have any claim in any condemnation or eminent domain
proceeding for the value of any unexpired term of this Lease with respect to
the Demised Premises or any portion thereof, and Tenant hereby assigns to
Landlord, Tenant’s entire interest in any such award.  Although Tenant shall not be entitled to any
part of the award for such taking or any payment in lieu thereof, Tenant (or
any Sublessee) may file a separate claim for any taking of fixtures and
improvements owned by Tenant (or such Sublessee) which have not become Landlord’s
property, for moving expenses, provided the same shall in no way affect or diminish
Landlord’s award.

 

34.          DEFAULTS;
EVENTS OF DEFAULT

 

34.1                           Tenant shall be
in default under this Lease upon the occurrence of any one or more of the
following events (collectively, “Defaults”, and
individually, a “Default”):

 

(a)                                  If Tenant fails
to take possession of the Demised Premises within fifteen (15) days after the
Commencement Date;

 

(b)                                 Intentionally
Deleted Prior To Execution

 

(c)                                  If Tenant is
delinquent in the due and punctual payment of all or any portion of Minimum
Rent, Adjusted Minimum Rent, additional rent or any other monies payable by
Tenant hereunder;

 

(d)                                 If any
execution, attachment or other action shall be taken against Tenant or any of
Tenant’s property whereupon the Demised Premises shall be taken, occupied or
used by someone other than Tenant or any assignee or Sublessee permitted in
strict accordance with Article 16 hereof; or

 

(e)                                  If Tenant is
delinquent in the performance of or compliance with any of the other covenants,
agreements or conditions contained in this Lease.

 

34.2                           Upon the
occurrence of a Default, Landlord, at any time thereafter, may give written
notice to Tenant specifying the nature of such Default.  As a Cure Period, Tenant shall have ten (10) business
days from the receipt of said notice to comply with or remedy any monetary
Default except in the case of any non-monetary Default presenting a clear and
present danger to life or

 

43

 

property,
which Tenant shall cure immediately upon request of Landlord or Managing Agent,
written or ‘otherwise.  Any oral request
made by Landlord under the preceding sentence shall be followed up with a
written notice to Tenant within three (3) business days after such oral request
was made.  If such non-monetary Default
is not of an emergency nature and shall be of a nature that the same cannot be
substantially cured or remedied within said thirty (30) day Cure Period, Tenant
shall promptly give Landlord written notice of such fact, and Tenant shall
diligently and in good faith proceed to remedy or cure such non-monetary
Default within a reasonable time, but in no event in excess of ninety (90)
days.  Neither the cost to Tenant of
curing any Default nor Tenant’s financial or other inability to cure any
Default (for whatever reason) shall operate to extend any Cure Period.  Tenant’s failure to remedy such Default
within the applicable time set forth in this Section shall be an “Event of Default”.

 

34.3                           Tenant
acknowledges that Landlord is obligated to make timely payments on obligations
arising out of its ownership, operation and financing of the Real Estate.  In the event that the payment of any sum
required to be paid by Tenant to Landlord under this Lease (including, without
limiting the generality of the foregoing, Minimum Rent, Adjusted Minimum Rent,
additional rent, payment made by Landlord under any provision of this Lease for
which Landlord is entitled to reimbursement by Tenant, or for construction or
other work performed by Landlord or its contractor specifically for Tenant) is
not received by Landlord in good funds within ten (10) days after the date on
which it is due and payable or should any check from Tenant be returned to
Landlord as uncollectible, then, notwithstanding any notice provision or Cure
Period, Tenant shall also pay Landlord, as additional rent, interest (“Interest”) at an annual rate equal to three hundred (300)
basis points in excess of the prime rate announced from time-to-time by
Citibank, NA or such other major commercial bank in the United States
designated by Landlord (but subject to any maximum interest permitted by Law)
on any amounts not received by Landlord within ten (10) days after the date on
which they became due and payable.  In
the event of nonpayment of Interest provided for above, Landlord shall have, in
addition to all other rights and remedies, all the rights and remedies provided
for herein and by Law in the case of nonpayment of rent.  Failure by Landlord or Managing Agent to
insist upon the strict performance by Tenant of Tenant’s obligations to pay
Interest shall not constitute a waiver by Landlord of its rights to enforce the
provisions of this Section in any instance thereafter occurring.  Neither the provisions of this Section nor
Tenant’s payment of any Interest shall be construed in any way to extend any
time period provided for in this Lease or to limit Landlord’s other remedies
hereunder.  Tenant’s obligation to pay
any Service Charge or Interest as provided in this Section shall continue
beyond the expiration or sooner termination of this Lease.

 

34.4                           In addition to
the provisions of Section 34.3 hereof, should Adjust Minimum Rent be received
by Landlord or Managing Agent later than the fifth (5th) day of the month on which
it is due three (3) or more times in any twelve-month period, Landlord may, in
addition to all other rights and remedies provided herein and by Law, require
that Tenant increase the amount of Security by an additional amount equal to
three (3) months’ of the then applicable Adjusted Minimum Rent, upon no less
than thirty (30) days prior written notice by landlord to Tenant in accordance
with Article 47 hereof.

 

35.          REMEDIES
FOR EVENTS OF DEFAULT

 

35.1                           Upon the
occurrence of any Event of Default hereunder, Landlord may, in addition to all
other rights and remedies provided herein or at Law or in equity, exercise any
or

 

44

 

all
of the following remedies:

 

(a)                                  Landlord may
give a written notice of termination upon Tenant setting forth a date, no fewer
than thirty (30) days from the date of the giving of such notice, terminating
this Lease and/or Tenant’s right to use and occupy the Demised Premises.  Upon the expiration of such period, this
Lease and the term hereof, or the right of Tenant or any Sublessee to use and
occupy the Demised Premises, as the case may be, shall terminate and expire as
fully and completely as if the day on which said notice of cancellation is to
be effective were the Expiration Date, and Tenant shall then peaceably quit and
surrender the Demised Premises to Landlord, but Tenant shall remain liable as
herein provided.  Landlord may also,
without further notice, re-enter the Demised Premises and repossess same by
summary proceedings or ejectment or other appropriate legal proceedings and/or
may dispossess Tenant and remove Tenant and all other persons and property from
the Demised Premises and may have, hold, use and enjoy the Demised Premises and
the right to receive all rental income therefrom.

 

(b)                                 Landlord
may:  (1) declare all Adjusted Minimum
Rent and all other sums due and payable hereunder immediately due and payable; (2)
re-let or sublet the Demised Premises or any part or parts thereof, in the name
of Tenant, Landlord or otherwise, for a term or terms, which may at Landlord’s
option be less than, equal to, or exceed the period which would otherwise have
constituted the balance of the term of this Lease, and Landlord may grant
concessions or free rent, change the First Tax Year and/or the First Operating
Year or charge such higher or lower rental as may be reasonable under the
circumstances; (3) recover from Tenant the unamortized portion of the
commission paid by Landlord to Broker on account of this Lease for the current
term amortized on a straight line basis over the Term; (4) collect rental
payments directly from any Sublessee, upon written notice to such Sublessee
directing it to make such payment directly to Landlord; and/or (5) cancel, on
no less than five (5) days’ prior written notice to Tenant, any option to
renew, extend or cancel this Lease or expand or contract the Demised Premises
which Tenant may have.

 

(c)                                  Landlord may
require Tenant or the legal representative(s) of Tenant immediately to pay to
Landlord a sum (the “Accelerated Rent”)
which, at the time of the Event of Default, equals the aggregate (discounted to
present value at a per annum rate of 5%) Adjusted Minimum Rent payable
hereunder which would have become payable by Tenant hereunder through the day
previously set as the Expiration Date (conclusively presuming that Adjusted Minimum
Rent on account of increases in Taxes and Operating Costs subsequent to the
Event of Default and through the Expiration Date shall increase at the average
of the rates of increase thereof previously experienced by Landlord since the
Commencement Date).  Such Accelerated
Rent shall be held by Landlord and applied by Landlord on a monthly basis to
any deficiency between the rent or any other monies hereby reserved and/or
covenanted to be paid by Tenant and the net amount, if any, of the rents
collected on account of any re-letting or subletting of the Demised Premises
for each month of the period which would otherwise have constituted the balance
of the term of this Lease.  The failure
of Landlord to re-let or sublet the Demised Premises or any part or parts
thereof shall not release or affect Tenant’s obligations or liability
hereunder.  Landlord, however, shall
exercise reasonable efforts to mitigate damages.  Notwithstanding the foregoing, Landlord shall
be under no obligation in re-letting the Demised Premises to give priority to
the rental thereof over other available space in the Building.  In computing any such deficiencies, there
shall be added thereto such actual, out-of-pocket and reasonable expenses as
Landlord may incur in connection with re-letting or subletting or

 

45

 

attempting
to relet or sublet the Demised Premises, including, but not limited to,
reasonable legal expenses, attorneys’ fees, brokerage fees, advertising
expenses and expenses incurred in connection with the marketing, showing,
fix-up, cleaning, repair or maintenance of the Demised Premises (including
those for preparation of the Demised Premises for re-letting or subletting and
the removal of Tenant’s property, fixtures or other improvements
therefrom).  In connection with Landlord’s
preparation of the Demised Premises for re-letting or subletting, Landlord may,
at its option, make such alterations, repairs and/or replacements in the
Demised Premises as Landlord, in Landlord’s reasonable discretion, considers
advisable and necessary for the purpose of re-letting or subletting the Demised
Premises, and the making of such alterations, repairs and/or replacements shall
not operate or be construed to release Tenant from liability hereunder.  Landlord shall in no event be liable in any
way whatsoever for failure to re-let or sublet the Demised Premises, or in the
event that the Demised Premises are re-let or sublet, for failure to collect
the rent under such re-letting or subletting, and in no event shall Tenant be
entitled to receive any excess, if any, of such net rents collected over the
sums payable by Tenant to Landlord hereunder. 
Landlord, however, shall exercise reasonable efforts to mitigate damages.  Notwithstanding the foregoing, Landlord shall
be under no obligation in reletting the Demised Premises to give priority to
the rental thereof over other available space in the Building.  If the Demised Premises or any part thereof
should be re-let or sublet in combination with the other space, then proper
apportionment on a square-foot basis shall be made of the rent received from
such re-letting and of the expenses of re-letting as aforesaid.

 

35.2                           Intentionally
Deleted Prior To Execution

 

35.3                           In the event of
a breach or anticipatory breach by Tenant of any of the covenants or provisions
hereof, Landlord shall have the right of injunction and the right to invoke any
remedy allowed at Law or in equity as if re-entry, summary proceedings and
other remedies were not provided for herein.

 

35.4                           Any suit or
suits for the recovery of monies due Landlord hereunder may be brought by
Landlord from time to time at its election, and nothing contained herein shall
be deemed to require Landlord to postpone suit until the date when the term of
this Lease otherwise would have expired. 
Mention in this Lease of any particular remedy shall not preclude
Landlord from any other remedy, at Law or in equity.  Nothing herein contained shall be construed
to limit or preclude recovery by Landlord against Tenant for any sums or
damages to which, in addition to the sums particularly provided above, Landlord
may lawfully be entitled by reason of any Default hereunder on the part of
Tenant.

 

35.5                           In no event
shall eight party be entitled to recover punitive damages from each other.

 

35.6                           Tenant, for
Tenant, and on behalf of any and all persons claiming through or under Tenant,
including, but not limited to, Sublessees, creditors, trustees, security
holders and representatives of all kinds, does hereby waive and surrender all
right and privilege which they or any of them might have under or by reason of
any present or future Law, to redeem the Demised Premises or to have a
continuance of this Lease for the term hereby demised after being dispossessed
or ejected therefrom by process of law or under the terms of this Lease or
after the termination of this Lease as herein provided.

 

46

 

36.          LANDLORD’S
PERFORMANCE;  EXPENDITURES

 

36.1                           If an Event of
Default shall occur under this Lease, Landlord, without thereby waiving such
Event of Default, may (but shall not be obligated to) immediately or at any
time thereafter, without further notice, perform the same for the account and
at the expense of Tenant.

 

36.2                           Tenant shall
also promptly reimburse Landlord for all reasonable costs, expenses and
disbursements of every kind and nature whatsoever, including, but not limited
to, reasonable attorneys’ fees, involved in (a) instituting, prosecuting or
defending any action or proceeding against Tenant in which Landlord is the
prevailing party; (b) collecting or endeavoring to collect the Minimum Rent,
Adjusted Minimum Rent or additional rent or any part thereof or any other money
payable by Tenant hereunder; or (c) enforcing or endeavoring to enforce any
rights of Landlord against Tenant, under or in connection with this Lease or
pursuant to Law, including any such cost, expense and disbursement involved in
instituting and prosecuting summary proceedings.  Any bills for any property, material, labor
or services provided, furnished, or rendered by Landlord pursuant to this Article
shall be obligations of Tenant.

 

36.3                           The foregoing
expenses incurred by Landlord shall be deemed to be additional rent hereunder
and shall be paid by Tenant to Landlord within thirty (30) days of rendition of
any bill or statement to Tenant therefor, together with supporting
documentation.  The obligations of Tenant
to pay such sums to Landlord shall survive the expiration or sooner termination
of this Lease, and such sums shall be thereafter recoverable by Landlord or its
agent or representative.

 

37.          ACCORD
AND SATISFACTION

 

37.1                           No payment by
Tenant or receipt by Landlord or its employee or agent of a lesser amount than
the rent and additional rent payable hereunder shall be deemed to be other than
a payment on account to be credited against monies owed Landlord hereunder, in
such order as Landlord may reasonably determine, nor shall any restrictive
endorsement, statement or name on any check or any letter accompanying any
check or payment delivered to Landlord or its employee or agent be deemed,
declared or interpreted an accord and satisfaction; and Landlord or its agent
may accept and deposit such check or payment without notice to Tenant, without
same operating as a satisfaction or an acceptance of satisfaction by Landlord
or its employee or agent, and without prejudice to Landlord’s right to recover
the balance of any monies due hereunder, or to pursue any other remedy provided
herein or by Law.

 

37.2                           No restrictive
endorsement, statement or name on any check or any letter accompanying any
check or payment delivered to Tenant or its employee or Agent shall be deemed,
declared or interpreted an accord and satisfaction.  Tenant or its Agent may accept and deposit
such check or payment without notice to Landlord, without same operating as a
satisfaction or an acceptance of satisfaction by Tenant or its employee or
Agent, and without prejudice to Tenant’s rights to recover the balance of any
monies due hereunder or to pursue any other remedy of Tenant provided in this
Lease.

 

38.          EFFECT
OF WAIVERS

 

38.1                           No failure by
Landlord to insist upon the strict performance of any covenant, agreement, term
or condition of this Lease, or to exercise any right or remedy permitted hereunder,
and no acceptance of full or partial rent during the continuance of any such
Default, shall constitute a waiver of any such Default or of such covenant,
agreement, term or condition.  No consent
or waiver, express or implied, by Landlord or its

 

47

 

employee
or agent to or of any Default, and no reliance by Tenant thereon, shall be
construed as a consent or waiver to or of any other Default of the same or any
other covenant, condition or duty, unless in writing signed by Landlord.

 

38.2                           No failure by
Tenant to insist upon the strict performance of any covenant, agreement, term
or condition of this Lease, or to exercise any right or remedy permitted
hereunder, shall constitute a waiver of any such default by Landlord or of such
covenant, agreement, term or condition. 
No consent or waiver, express or implied, by Tenant or its employee or
Agent to or of any default by Landlord or its agents, employees and
contractors, and no reliance by Landlord thereon, shall be construed as a
consent or waiver to or of any other default by Landlord, or its agents,
employees and contractors of the same or any other covenant, condition or duty,
unless in writing signed by Tenant.

 

39.          BANKRUPTCY;  INSOLVENCY

 

39.1                           Notwithstanding
anything herein to the contrary, this Lease may be cancelled by Landlord by the
sending of a written five (5) day notice of cancellation to Tenant within a
reasonable time after the happening of any one or more of the following
events:  (a) the appointment of a
trustee, custodian, liquidator, receiver or other similar official to take
possession of all or substantially all of the assets of Tenant or of the
Demised Premises; (b) the making by Tenant of an assignment or any other
arrangement for the benefit of creditors pursuant to any Law; (c) the filing by
Tenant, or the public announcement of the intent to file, of a voluntary
petition pursuant to 11 U.S.C. 101 et seq. and the Rules and Official Forms
thereunder or any such successor or substitute legislation or rule thereto, or
any similar federal or state law collectively (the “Bankruptcy
Code”) seeking any reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief thereunder; (d) the
adjudication of Tenant as a bankrupt or insolvent; or (e) the failure of Tenant
or any guarantor of the Tenant’s obligations hereunder to pay debts generally
as they become due.  Landlord’s statutory
liens for rent shall be honored by Tenant and any trustee, representative or
creditor of Tenant in any of such events.

 

39.2                           If Landlord
shall have no right to terminate this Lease by reason of the applicable
provisions of the Bankruptcy Code, Tenant or its trustee or other
representative shall promptly provide adequate protection to Landlord pursuant
to the provisions of the Bankruptcy Code.

 

(a)                                  Tenant or its
trustee shall promptly accept or reject this Lease.  Any Lease not assumed or rejected within
ninety (90) days after an order for relief is entered shall be deemed rejected,
and the trustee shall immediately surrender the Demised Premises to Landlord.

 

(b)                                 If Tenant shall
not be in liquidation, Tenant or its trustee shall assume or reject the Lease
as soon as such decision can reasonably be made, and shall compensate Landlord
for the use and occupancy of the Demised Premises monthly in advance until such
decision is made.

 

(c)                                  This Lease may
not be assumed, unless at the time of such assumption, the trustee or assignee
shall promptly:  (1) cure or provide
adequate assurance that it will promptly cure any Default(s) under this Lease; (2)
compensate or provide adequate assurance that it shall compensate Landlord for
any actual or pecuniary loss to Landlord resulting from such Default(s); (3) provide
adequate assurance reasonably satisfactory to Landlord of future performance
under this Lease;

 

48

 

and
(4) compensate Landlord for all post-filing use and occupancy of the Demised
Premises, and shall timely perform all of Tenant’s other obligations hereunder.

 

39.3                           If this Lease
is assigned to any person or entity pursuant to the provisions of the
Bankruptcy Code, Tenant or its legal representative shall give prompt written
notice thereof to Landlord along with adequate assurance of future performance
by the assignee.  Any and all monies or
other consideration to be delivered in connection with the assignment shall be
delivered to Landlord, and shall be and remain the exclusive property of
Landlord to be applied to post-filing use and occupancy payments to Landlord or
other monies owed by Tenant to Landlord and shall not constitute property of
Tenant or of the estate of Tenant.  Any
person or entity to which this Lease is assigned pursuant to the provisions of
the Bankruptcy Code shall be deemed to have assumed all of the obligations
arising under this Lease on and after the date of such assignment, and shall
promptly upon demand execute and deliver to Landlord an instrument confirming
such assumption.

 

40.          STATUTORY
WAIVER; WAIVER OF TRIAL BY JURY

 

40.1                           Tenant
acknowledges that its possession, use and peaceful enjoyment of the Demised
Premises is conditioned upon Tenant’s timely performing all of its obligations
hereunder, including, but not limited to, the payment of all Minimum Rent, as
set forth in Section 5.3 hereof.  In
consideration thereof, Tenant hereby waives its right under N.J.S.A. 2A:18-60
or other similar statutes to remove any action for non-payment of Minimum Rent
brought by Landlord or its Managing Agent pursuant to N.J.S.A. 2A:18-53 to
another court.  Any other matter
mentioned in any such action brought by Landlord under the latter statute shall
not waive Landlord’s or Tenant’s right to bring a separate action in the proper
court for monies due and owing either party hereunder; nor shall Landlord be
prohibited from instituting a dispossess action for nonpayment of monies other
than Minimum Rent.

 

40.2                           To the extent
such waiver is permitted by Law, the parties hereto waive trial by jury in any
action or proceeding brought in connection with this Lease or the Real Estate
or any portion thereof.

 

40.3                           Tenant waives
the benefit of N.J.S.A. 46:8-6 and 46:8-7, as same may be amended.

 

41.          SUBORDINATION
OF LEASE; ESTOPPEL CERTIFICATES

 

41.1                           This Lease is
subject and subordinate to all ground or underlying leases and to all deeds of
trust or mortgages which may now or hereafter affect the Real Estate, including
all renewals, modifications, consolidations, replacements and extensions of any
such underlying leases, deeds of trust and mortgages.  This clause shall be self-operative and no
further instrument of subordination shall be required by any Land Lessor or by
any mortgagee in order to effectuate such subordination. Notwithstanding the
foregoing, Tenant shall execute and promptly deliver to Landlord or its agent
within five (5) business days any instrument that Landlord or its agent, as the
case may be, may reasonably request confirming the subordination of this Lease.

 

41.2                           If any lender
shall request reasonable modifications of this Lease as a condition of Landlord’s
obtaining any financing or refinancing of the Building, the Real Estate and/or
any interest of Landlord in either, Tenant covenants not to unreasonably
withhold or delay its agreement to such modification provided that such modification
does not

 

49

 

materially
or adversely affect the rights or obligations of Tenant under this Lease.

 

41.3                          Tenant agrees
to give any mortgagee, deed of trust holder, or Land Lessor, a copy of any
notice and a right to cure any default of Landlord within the periods, if any,
set forth in this Lease, provided that, prior to such notice, Tenant has been
notified in writing (by way of notice of assignment of rents and leases, or
otherwise) of the address of such mortgagee, deed of trust holder, or Land
Lessor.  Tenant further agrees that so
long as any mortgagee, deed of trust holder or Land Lessor has commenced and is
diligently pursuing the remedies necessary to cure such default (including, but
not limited to, commencement of foreclosure proceedings, if necessary to effect
such cure), Tenant shall not seek to terminate this Lease.

 

41.4                          Tenant agrees
at any time and from time to time, upon not less than fifteen (15) days’ prior
written request from Landlord or Managing Agent, that Tenant shall execute,
acknowledge and deliver to Landlord, or its designee, a statement in writing
certifying to the best of Tenant’s information, knowledge and belief:  (a) that this Lease is unmodified and is in
full force and effect (or if there have been modifications, the specifics
thereof and that this Lease is in full force and effect as modified); (b) the
dates to which the Minimum Rent (or Adjusted Minimum Rent) and additional rent
have been paid; (c) the amount of all rents paid in advance, if any; and (d) and
any other information that Landlord or Managing Agent shall reasonably
request.  Tenant further agrees to
furnish Landlord or Managing Agent, upon no less than fifteen (15) days’ prior
written request, such information as Landlord or Managing Agent, as the case
may be, may reasonably request that Tenant has not breached any of the
provisions of this Lease.  It is intended
hereby that any such statement delivered pursuant to this Article may be relied
upon by a prospective purchaser or mortgagee of Landlord’s interest, or any
assignee of any mortgage upon Landlord’s interests in the Real Estate.  Tenant’s failure to timely deliver such
statement shall be conclusive evidence:  (x)
that this Lease is in full force and effect, without modification except as may
be represented by Landlord; (y) that there are no uncured defaults in Landlord’s
performance and Tenant has no right of offset, counterclaim, defenses or
deduction against the Minimum Rent, Adjusted Minimum Rent, additional rent or
against Landlord, except as may otherwise be expressly provided to the contrary
elsewhere in this Lease; and (z) that no more than one (1) month’s installment
of Minimum Rent or Adjusted Minimum Rent has been paid in advance.

 

41.5                          Tenant agrees
at any time and from time to time, upon not less than fifteen (15) days’ prior
written request, that Tenant shall demonstrate to Landlord, Tenant’s financial
status, and the name, relationship to Tenant and financial status of any
Sublessee by promptly submitting to Landlord or Managing Agent all information
that Landlord or Managing Agent may reasonably request and statements of income
or profit and loss, all prepared in accordance with generally accepted
accounting principles, consistently applied. 
Landlord and Tenant shall execute a confidentiality agreement regarding
the information that Tenant actually delivers to Landlord pursuant to this
Section, but only if the form and content of said agreement is reasonably
satisfactory to Landlord and Tenant.  The
failure of either party to execute and deliver said confidentiality agreement
shall in no event vitiate Tenant’s obligations under this Section.  Landlord may not request that Tenant comply
with the first (lst) sentence of
this Section unless such request is in connection with a legitimate and
bonafide business reason related to a proposed, contemplated or actual
transaction involving all or any part of the Real Estate.

 

50

 

41.6                          With respect to
all mortgages and ground leases in effect on or after the date hereof that
encumber this Lease or the Building on or after the date hereof, Landlord shall
endeavor to use reasonable efforts (at no cost or expense to Landlord) to
obtain a non-disturbance and attornment agreement in recordable form from the
holder of any such mortgage or ground lease, providing in substance that so
long as Tenant shall have entered into possession and occupancy of the Demised
Premises and commenced payment of Minimum Rent and additional rent due
hereunder, and so long as no Event of Default then exists, Tenant’s possession
of the Demised Premises will not be disturbed during the term hereof,
notwithstanding the foreclosure of any such mortgage or termination of any such
ground lease, and Tenant will not be named as a party defendant in any foreclosure
or termination proceedings brought for the recovery of possession, it being
hereby covenanted and agreed by Tenant that the holder of any such mortgage or
ground lease, or anyone claiming by, through or under said holder, shall not
be:  (i) liable for any act or omission
of any prior landlord (including Landlord); or (ii) subject to any offsets or
defenses which Tenant might have against any prior landlord (including
Landlord); or (iii) bound by any Minimum Rent, Adjusted Minimum Rent or
additional rent or other charges which Tenant might have paid for more than the
current month to a prior landlord (including Landlord); or (iv) bound by any
modifications of this Lease made without the written consent of such mortgagee
or ground lessor.

 

41.7                          The failure of
Landlord to obtain a non-disturbance and attornment agreement shall not be
deemed a default on Landlord’s part of its obligations hereunder, or impose any
claim in favor of Tenant against Landlord by reason thereof, or affect the
validity of this Lease.  Tenant agrees
to:  (i) execute and deliver to such
mortgagee or ground lessor a non-disturbance and attornment agreement in form
and substance satisfactory to and customarily adopted by such mortgagee or
ground lessor; and (ii) pay Landlord for all actual, out-of- pocket and
reasonable expenses incurred by Landlord in connection therewith, including,
but not limited to, reasonable legal expenses, processing costs and other
administrative fees.

 

41.8                          Provided there
is no Event of Default under this Lease, Landlord shall, at any time and from
time to time, upon not less than fifteen (IS) days’ prior written request,
execute, acknowledge and deliver to Tenant or its designee, a statement in
writing certifying to the best of Landlord’s information, knowledge and
belief:  (a) that this Lease is
unmodified and is in full force and effect (or if there have been
modifications, the specifics thereof and that this Lease is in full force and
effect as modified); (b) the dates to which Minimum Rent (or Adjusted Minimum
Rent) and additional rent have been received; (c) the amount of all rents
received in advance, if any; and (d) any other information that Tenant shall
reasonably request.  Provided there is no
Event of Default under this Lease, Landlord further agrees to furnish Tenant,
upon no less than fifteen (15) days’ prior written request, such information as
Tenant may reasonably request that Landlord has not breached the provisions of
this Lease.  It is intended hereby that
any such statement delivered pursuant to this Section may be relied upon by a
prospective assignee of this Lease or any prospective Sublessee of all or any
part of the Demised Premises.

 

42.                               PARTNERSHIP
TENANT

 

42.1                          If Tenant is a
partnership, joint venture, proprietorship or unincorporated association (or is
comprised of two (2) or more persons, individually and as co-partners,
co-proprietors or joint venturers) or if Tenant’s interest in this

 

51

 

Lease
shall be assigned to a partnership, joint venture, proprietorship or
unincorporated association (or to two (2) or more persons, individually and as
co-partners, co-proprietors or joint venturers) pursuant to Article 16 hereof
or otherwise (any such partnership joint venture, proprietorship or unincorporated
association being referred to herein as a “Partnership
Tenant”, and any partner, joint
venturer or other member thereof being referred herein to as a “Partner”), the following provisions of this Section shall
apply to such Partnership Tenant:  (a) the
liability of each of the Partners shall be joint and several, individually and
as a Partner; and (b) each of the Partners, whether or not such person shall be
one of the persons comprising Tenant at the time in question, hereby consents
in advance to, and agrees to be bound by, any written instrument which may
hereafter be executed by Partnership Tenant or by any of the Partners,
changing, modifying or discharging this Lease, in whole or in part, or
surrendering all or any part of the Demised Premises to Landlord, and by any
notices, demands, requests or other communications which may hereafter be
given, by Partnership Tenant or by any of the Partners; (c) any bills,
statements, notices, demands, requests or other communications given or
rendered to Partnership Tenant or to any of the Partners shall be deemed given
or rendered to Partnership Tenant and to all such Partners and shall be binding
upon Partnership Tenant and all Partners; (d) if Partnership Tenant shall admit
new Partners all of such new Partners shall, by their admission to Partnership
Tenant, be deemed to have assumed performance of all of the terms, covenants
and conditions of this Lease on Tenant’s part to be observed and performed, and
shall be liable for such performance, together with all other Partners, jointly
or severally, individually and as a Partner; and (e) Partnership Tenant shall
give prompt notice to Landlord of the admission of any such new Partners, and
upon demand of Landlord, shall cause each such new Partner to execute and
deliver to Landlord an agreement in form reasonably satisfactory to Landlord,
wherein each such new Partner or joint venturer shall so assume performance of
all of the terms, covenants and conditions of this Lease on Tenant’s part to be
observed and performed (but neither Landlord’s failure to request any such
agreement nor the failure of any such new Partner to execute or deliver any
such agreement to Landlord shall vitiate the provisions of subsection (d) of
this Section).

 

43.                               INTENTIONALLY
DELETED PRIOR TO EXECUTION

 

44.                               CORPORATE
AUTHORITY

 

44.1                          Each of the
undersigned on behalf of Tenant represents that the person executing and
delivering this Lease on behalf of Tenant has been duly authorized to enter
into this Lease and that the execution and delivery of this Lease does not and
shall not violate any provision of any by-law, agreement, order, judgment,
governmental regulation or any other obligation to which Tenant is subject as
of the Date of Lease.

 

44.2                          Each of the
undersigned on behalf of Landlord represents that the person executing and
delivering this Lease on behalf of Landlord has been duly authorized to enter
into this Lease and that the execution and delivery of this Lease does not and
shall not violate any agreement, order, judgment, mortgage, ground lease,
governmental regulation or any other obligation to which Landlord is subject as
of the Date of Lease.

 

44.3                          Throughout the
term of this Lease, Tenant shall maintain its good standing in its
organizational jurisdiction and in the State of New Jersey.

 

52

 

45.                               MANAGING
AGENT

 

45.1                          Landlord
reserves the right at any time to delete all references in this Lease to “Managing
Agent” or to change the person or entity acting as Managing Agent by giving
notice of the exercise of such right to Tenant and to Managing Agent.  Such notice shall become effective five (5) business
days after sending as provided in Article 47 hereof, or such later time as may
be stated in such notice.

 

45.2                          Managing Agent
reserves the right at any time to delete all references in this Lease to “Managing
Agent” by giving notice of the exercise of such right to Tenant and to
Landlord.  Such notice shall become
effective five (5) business days after sending as provided in Article 47
hereof, or such later time as may be stated in such notice.

 

45.3                          Nothing
contained in this Article nor any notices pursuant to this Article shall in any
way modify or amend any other written agreement to which Landlord and Managing
Agent are parties.

 

46.                               BROKER

 

46.1                          Tenant
represents that no real estate broker other than the Brokers listed under Section
1.1(r) hereof, is responsible for bringing about, or negotiating, this Lease,
and Tenant has not dealt with any other broker, agent, salesperson, leasing
consultant, or similar person in connection with the Demised Premises.

 

46.2                          In accordance
with the foregoing representation, Tenant agrees to defend, indemnify and hold
harmless Landlord from any legal action, expense or liability (including
reasonable attorneys’ fees) arising out of any claim for commission by any
person other than the Brokers claiming or alleging to have acted on behalf of
or to have dealt with Tenant.

 

46.3                          Landlord
represents that no real estate broker other than the Brokers is responsible for
bringing about, or negotiating, this Lease, and Landlord has not dealt with any
other broker in connection with this Lease. 
Landlord shall pay the Brokers a commission if, as and when same is
earned and due in connection with this Lease pursuant to the terms of a
separate written agreement between Landlord and each of the Brokers.  If (a) Landlord defaults under its separate
written agreement with either or both Brokers regarding this Lease and the
aggrieved Broker(s) make(s) a claim for commission against Tenant or (b) Landlord
has in fact dealt with a broker other than the Brokers in connection with this
Lease, and a claim for commission is made against Tenant by such other broker
with whom Landlord has dealt, then, in either case, Landlord shall defend,
indemnify and hold harmless Tenant from any legal action, expense or liability (including reasonable attorneys’ fees)
arising out of any such claim.

 

47.                               NOTICES

 

47.1                          All notices,
demands and requests which may or are required to be given by either party
hereunder to the other, shall
be in writing.

 

47.2                          All notices by
Landlord to Tenant shall be deemed properly given only if sent by Landlord or
its Managing Agent and mailed by registered or certified mail, return receipt
requested, with postage prepaid, or by reliable, independent courier, with
guaranteed next-business-day delivery, a receipt provided and

 

53

 

with
delivery charges prepaid, addressed to Tenant at the address set forth in Article
1 hereof prior to the Commencement Date, and at the Demised Premises subsequent
to the Commencement Date, or to such other persons and/or addresses as Tenant
may from time to time designate by written notice to Landlord with a copy to:

 

Jan
Alan Lewis, Esq.

Cole,
Schotz, Meisel, Forman & Leonard, P.A.

Court
Plaza North

25
Main Street

Post
Office Box 800

Hackensack,
New Jersey 07602-0800

 

47.3                          All notices by
Tenant to Landlord shall be deemed properly given only if sent by registered or
certified mail, return receipt requested, with postage prepaid, or by reliable,
independent courier, with guaranteed next-business-day delivery, a receipt
provided and with delivery charges prepaid, addressed to Landlord at the
address set forth in Article 1 hereof, with a copy to:

 

Marc
Leonard Ripp, Esq.

General
Counsel 

The
Gale Company, L.L.C. 

Park
Avenue at Morris County 

100
Campus Drive, Suite 200 

Florham
Park, New Jersey 07932

 

and,
at the prior written request of Landlord or Managing Agent to such other
persons and/or addresses as Landlord or its Managing Agent may from time to
time designate by written notice to Tenant.

 

47.4                          All notices
referred to hereunder shall be deemed given and received upon receipt or
rejection of receipt of said notice, if mailed by registered or certified mail
as aforesaid, in any post office regularly maintained by the United States
Government, or upon actual receipt if sent by independent courier.

 

47.5                          Notwithstanding
the other provisions of this Article, any written notice under this Lease may
be personally served upon an officer or partner of Landlord or Tenant, in which
case such notice shall be deemed given when delivered and receipted.

 

48.                               INTERPRETATION

 

48.1                          If any of the
terms or provisions of this Lease, or the application thereof to any party or
circumstance, shall to any extent be invalid or unenforceable, the remainder of
this Lease, or the application of such term or provision to parties or
circumstances other than to those as to whom or to which it is held invalid or
unenforceable, shall not be affected thereby. 
If any time period stated herein shall be in contravention of any Law,
such time period shall be modified to be that time period permitted by such Law
which is nearest to the time period stated herein.  Each term and provision of this Lease shall
be interpreted so that it is valid and enforceable to the fullest extent
permitted by Law, in order to reflect the agreement of the parties as expressed
herein.

 

48.2                          The term “this
Lease” shall include all the Exhibits and written amendments hereto or
thereto.  The terms “herein”, “hereunder”,
“hereof”, “herewith”, and “hereto” shall refer to this Lease.

 

48.3                          Time is of the
essence with respect to the observance and performance of every monetary
provision hereof to

 

54

 

be
observed and performed by Tenant.

 

48.4                          As a material
inducement to Landlord to enter into this Lease, Tenant agrees that this Lease
shall be governed by and construed in accordance with the Laws of and enforced
only in the courts of New Jersey.  Tenant
irrevocably appoints the Secretary of State of New Jersey as Tenant’s agent for
service of process related to this Lease, should Tenant no longer be in
occupancy of the Demised Premises; and neither Tenant’s failure to qualify to
do business in the State of New Jersey nor Tenant’s failure to maintain such
qualification shall affect the foregoing appointment.  The foregoing appointment shall be a special
power coupled with an interest and shall be irrevocable.  Tenant hereby irrevocably submits itself to
the jurisdiction of the courts of the State of New Jersey and to the
jurisdiction of the United States District Court for the District of New Jersey
for the purposes of any suit, action or other proceeding brought by Landlord
arising out of or based upon this Lease. 
Tenant hereby waives and agrees not to assert as a defense or otherwise
in any such suit, action or proceeding any claim: (a) that Tenant is not
subject personally to the jurisdiction of the above-named courts; (b) that its
property is exempt or immune from attachment or execution; (c) that the suit,
action or proceeding is brought in an inconvenient forum; (d) that the venue of
the suit, action or proceeding is improper; or (e) subject to the subject matter
jurisdiction of such court, that this Lease may not be enforced in or by such
court.

 

48.5                          Tenant
acknowledges that this Lease represents a written memorial of the terms
negotiated by Landlord and Tenant, and Landlord and Tenant agree that this
Lease shall be given a fair and reasonable construction in accordance with the
parties’ intent as expressed herein, without regard to any presumption or other
rule requiring construction against the party electing to cause this Lease to
be drafted or prepared.  Text deleted
from a prior draft of this Lease shall not be admissible in an action or
proceeding relating to the Lease for the purpose of altering or limiting the
meaning or effect of the Lease.

 

48.6                          The Article titles
or content organization of this Lease exist only as a matter of reference or
convenience and in no way define, limit, extend or describe the scope of this
Lease or the intent of any of the provisions hereof.

 

48.7                          Tenant
acknowledges and agrees that it has had the assistance of counsel in the
review, negotiation and execution of this Lease or has waived its opportunity
to employ counsel for such purpose.

 

48.8                          Intentionally
Deleted Prior To Execution

 

48.9                          Intentionally
Deleted Prior To Execution

 

48.10                    Intentionally
Deleted Prior To Execution

 

48.11                    In any and all
cases where Landlord’s consent or approval is required under this Lease, Tenant
shall promptly upon Landlord’s demand reimburse Landlord, as additional rent,
for all actual, out-of-pocket and reasonable costs and expenses, including, but
not limited to, reasonable architectural, engineering and legal fees, which
Landlord incurs in determining whether to grant its consent or approval.  Landlord shall provide Tenant with an
appropriate invoice together with supporting documentation in connection with
the costs and expenses referenced in this Section.

 

48.12                    Tenant shall
pay all reasonable legal fees incurred by Landlord in its successful
enforcement of this Lease against Tenant. 
Landlord shall pay all reasonable legal fees

 

55

 

incurred
by Tenant in its successful enforcement of this Lease against Landlord.

 

49.                               NO
OFFER, AGREEMENT OR REPRESENTATIONS

 

49.1                          No broker or
agent nor any salesperson or employee of either has authority to make or agree
to make a lease on behalf of Landlord named herein or any other agreement or
undertaking in connection herewith, including, but not limited to, the
modification, amendment of or cancellation of a lease.

 

49.2                          The mailing or
delivery of this document or any draft of this document by Landlord or its
agent to Tenant, its Agent or attorney shall not be deemed an offer by Landlord
to lease the Demised Premises on the terms set forth in such draft, and such
document or draft may be withdrawn or modified by Landlord or its agent at any
time and for any reason.  The purpose of
this Section is to place Tenant on notice that this document shall not be
effective, nor shall Tenant have any rights with respect hereto, unless and
until Landlord shall execute and deliver this document to Tenant.

 

49.3                          All prior
undertakings and agreements between Landlord and Tenant are merged in this
Lease and it completely expresses their agreement with respect to the subject
matter hereof.  This Lease has been
entered into after full investigation, neither party relying upon any statement
or assumption not set forth herein.  No
representations or promises shall be binding on the parties hereto except those
representations and promises contained in a fully executed copy of this document
or in some future writing signed by Landlord and Tenant.

 

50.                               APPLICABILITY
TO HEIRS AND ASSIGNS

 

50.1                          The provisions
of this Lease shall apply to, bind and inure to the benefit of Landlord and
Tenant, and their respective heirs, legal representatives, trustees, successors
and assigns, subject to the constraints on alienation and limits on liability
contained herein.

 

51.                               RENEWAL
OPTIONS

 

51.1                          Subject to the
provisions of Section 51.2 hereof, Tenant shall have the option to renew this
Lease for the number of Renewal Terms set forth in Section 1.1(t) hereof (the “Renewal Options”). 
The first (1st) Renewal Term,
if duly exercised, shall commence upon the expiration of the Initial Term.  The second (2nd) Renewal Term, if duly exercised, shall commence upon
the expiration of the first (1st) Renewal Term. 
Subject to the determination of Minimum Rent as set forth below, the
terms, covenants and conditions during the Initial Term shall be projected and
carried over into each subsequent renewal term (a “Renewal
Term”), except as specifically set forth hereinafter to the
contrary.

 

51.2                          Tenant’s
Renewal Options, as provided in Sections 1.1(t) and 51.1 hereof, shall be
strictly conditioned upon and subject to the following, each of which shall be
considered material hereto:

 

(a)                                   Tenant shall notify Landlord
in writing (“Tenant’s Renewal Notice”) of
Tenant’s exercise of its option to renew this Lease at least nine (9) months,
but not more than twelve (12) months, prior to the expiration of the then
current Term;

 

(b)                                  At the time Landlord
receives Tenant’s

 

56

 

Renewal
Notice as provided in Section 51.2 (a) hereof, and at the expiration of the
Initial Term or the first (1st) Renewal Term, as the case may be, there shall not exist an Event of
Default under the terms or provisions of this Lease, and Tenant named in Section
1.1 hereof or any permitted affiliate or permitted assignee allowed under Article
16 hereof shall be in occupancy of fifty percent (50%) or more of the Demised
Premises, as same are constituted on the Commencement Date.  The conditions contained in this Section 51.2(b)
hereof may be waived by Landlord at its sole discretion and may not be used by
Tenant as a means to negate the effectiveness of Tenant’s exercise of this
option to renew;

 

(c)                                   Tenant shall have no further
renewal option other than the options to extend for the Renewal Terms as set
forth in Section 1.1(t) hereof;

 

(d)                                  The Renewal Options shall be
deemed personal to Tenant named on the first page of this Lease and to any
assignee expressly permitted under Section 16.18(a) - (d) hereof and may not be
otherwise assigned or assumed without the prior written consent of Landlord,
which consent Landlord may withhold, for any reason whatsoever or for no reason
at all, as determined by Landlord in its sole and absolute discretion.

 

(e)                                   Landlord shall have no
obligation to do any work or perform any special services for any Renewal Term
with respect to the Demised Premises or the remainder of the Real Estate, which
Tenant agrees to accept in their then “as is” condition; and

 

(f)                                     At the request o£ either
party, Landlord and Tenant shall promptly execute and return to the other party
a written amendment to this Lease memorializing the commencement date, Minimum
Rent payable and Expiration Date of the respective Renewal Term.

 

51.3                          (a) Landlord
shall notify Tenant (“Landlord’s Determination
Notice”) of Landlord’s determination of the Market Rent (as
hereinafter defined) within thirty (30) days after Landlord’s receipt of Tenant’s
Renewal Notice.  If Tenant disagrees with
Landlord’s determination of Market Rent, Tenant shall notify Landlord (“Tenant’s Notice of Disagreement”) within fifteen (15) days
of receipt of Landlord’s Determination Notice. 
Time shall be of the essence with respect to Tenant’s Notice of
Disagreement, and the failure of Tenant to give such notice specifically as
provided below within the time period set forth above shall conclusively be
deemed an acceptance by Tenant of the Market Rent as determined by Landlord and
a waiver by Tenant of any right to dispute such Market Rent.

 

(b)                                  Tenant’s Notice of
Disagreement, shall contain either (1) a cancellation of Tenant’s exercise of
its Renewal Option (which cancellation shall operate as a cancellation of all
subsequent Renewal Options), or (2) a request to submit the determination of
Market Rent to arbitration as provided below.

 

(c)                                   Landlord and Tenant shall,
within thirty (30) days of the date on which Tenant’s Notice of Disagreement
under Subsection 51.3(b) (2) hereof is given, each appoint an Appraiser (as
hereinafter defined) for the purpose of determining the Market Rent.  An “Appraiser”
shall mean a duly qualified impartial real estate appraiser who is a member of
the American Institute of Real Estate Appraisers, or a duly licensed real
estate broker in the State of New Jersey, both having at least ten (10) years’
professional experience with commercial office buildings in the area in which
the Demised Premises are located.  In the
event that the two (2) Appraisers so appointed fail to

 

57

 

agree
as to the Market Rent within a period of thirty (30) days after the appointment
of the second Appraiser, such two (2) Appraisers shall forthwith appoint a
third Appraiser who alone shall make a determination of Market Rent within
thirty (30) days thereafter.  If such two
Appraisers fail to agree upon such third Appraiser within ten (10) days
following the last thirty (30) day period, such third Appraiser shall be
appointed by the Presiding Judge of the Superior Court of the State of New
Jersey for the County in which the Real Estate is located.  Such two (2) Appraisers or third Appraiser,
as the case may be, shall proceed with all reasonable dispatch to determine the
Market Rent.  The decision of such two (2)
Appraisers or third Appraiser shall be final and shall be unappealable, absent
any showing of fraud by such Appraiser(s); such decision shall be in writing
and a copy shall be delivered simultaneously to Landlord and to Tenant.

 

(d)                                  If such two (2) Appraisers
or third Appraiser, as the case may be, shall fail to deliver a decision as set
forth above prior to the commencement of the Renewal Term, Tenant shall pay to
Landlord thereafter on the first (1st) day of each month until the decision of the
Appraiser(s) is rendered, “Estimated Minimum Rent”, which shall be the average
of (i) Minimum Rent payable under this Lease as of the last day of the term
preceding the Renewal Term and (ii) the rent set forth in Landlord’s
Determination Notice, plus any amounts payable by Tenant pursuant to Article 6,
until such decision is so delivered.  If
the Minimum Rent for the Renewal Term is more than the Estimated Minimum Rent
actually paid by Tenant to Landlord during such interim period, then, Tenant,
within ten (10) business days of demand by Landlord, shall pay to Landlord the
difference between the Minimum Rent from the commencement of the Renewal Term
and the Estimated Minimum Rent actually paid by Tenant to Landlord.  If the Minimum Rent for the Renewal Term is
less than the Estimated Minimum Rent actually paid by Tenant to Landlord during
such interim period, then, Landlord shall apply such excess against amounts due
Landlord from Tenant hereunder as such amounts become due.

 

(e)                                   Landlord and Tenant shall be
responsible for and shall pay the fee of the Appraiser appointed by each of
them respectively, and Landlord and Tenant shall share equally the fee of the
third Appraiser, if any.

 

(f)                                     Promptly upon determination
of the Market Rent for the respective Renewal Term, Tenant shall execute and
deliver to Landlord or Managing Agent an amendment to this Lease prepared by
Landlord setting forth the terms of the respective Renewal Term.

 

51.4                          (a)                                   The Minimum
Rent during the first (1st) Renewal Term
shall be the greater of (1) Market Rent (as defined in clause (b) below) or (2)
the Adjusted Minimum Rent as of the last day of the Initial Term.  The Minimum Rent during the second (2nd) Renewal Term shall be the
greater of (i) Market Rent or (ii) the Adjusted Minimum Rent as of the last day
of the first (lat) Renewal Term.

 

(b)                                  For purposes of this
Article, “Market Rent” shall mean the projected
fair market rent for office space containing the Rentable Size of the Demised
Premises (during the respective Renewal Term), as of the commencement date of
the applicable Renewal Term, based upon the rents generally in effect for
comparable office space in comparable condition, in the area in which the Real
Estate is located, taking into consideration the improvements made to the
Demised Premises paid for by Landlord. 
Market Rent shall be determined on what is commonly known as a “gross”
basis; that is, in computing Market Rent, it shall be assumed that all real
estate taxes and operating expenses for customary services are included in such
Market Rent

 

58

 

and
are not passed through to the Tenant as separate additional charges.

 

(c)                                   The Minimum Rent for each
Renewal Term shall be increased from time to time thereafter as provided in
this Lease, including Article 6 hereof.

 

51.5                          Tenant waives
any claims or action against Landlord or its successor in title in the event
that the renewal provided for in this Lease is made impossible because of the
taking of the Demised Premises in whole or in part for public use by
condemnation.  Tenant further agrees to
waive any demand or claim for any award or allowance or any part thereof
granted to Landlord as compensation for such condemnation.

 

52.                               INTENTIONALLY
DELETED PRIOR TO EXECUTION

 

53.                               INTENTIONALLY
DELETED PRIOR TO EXECUTION

 

54.                               FORCE
MAJEURE

 

54.1                          Neither party
shall be deemed in default with respect to any of the terms, covenants,
conditions and provisions of this Lease if such party fails to timely perform
same and such failure is due in whole or in part to any strike, lockout, labor
trouble (whether legal or illegal), civil disorder, inability to procure
materials, failure of power, restrictive governmental laws or regulations,
riots, insurrections, war, fuel shortages, accidents, casualties, acts of God,
acts caused directly or indirectly by the other party (or the other party’s
agents, employees or invitees), mechanical breakdown, or any other cause beyond
the reasonable control of such party; provided, however, that nothing contained
herein is intended nor shall be construed to: 
(a) extend the date for payment of any installment of Minimum Rent,
Adjusted Minimum Rent or additional rent due under this Lease; (b) the date
upon which Tenant is required to surrender and vacate the Demised Premises
under this Lease; or (c) the ninety (90) day period referenced in Section 34.2
hereof.

 

55.                               SATELLITE
ANTENNA

 

55.1                          So long as
there is no Event of Default under this Lease, Tenant may, at its sole cost and
expense, erect on the roof of the Building one (1) satellite antenna
transmission/ reception device, provided Landlord has first approved in
writing, which approval shall not be unreasonably withheld, delayed or
conditioned:  (1) Tenant’s plans and specifications
therefor; and (2) the contractor erecting same and further  provided
that Tenant, at its expense, obtains, keeps current and immediately delivers to
Landlord an original counterpart of all necessary municipal approvals.  In addition, Tenant’s right to erect on the
roof of the Building, a satellite antenna transmission/reception device shall
be expressly conditioned upon and subject to Landlord and Tenant first entering
into a mutually acceptable license agreement which shall, among other things, require
Tenant to pay Landlord a reasonable monthly license fee.  Tenant agrees to promptly comply with and
strictly abide by, at its sole expense, any rules and regulations that Landlord
may reasonably promulgate in connection with the installation, relocation,
operation, repair, maintenance, replacement, concealment by screening and the
removal of the satellite antenna transmission/reception device.  Tenant agrees to perform the installation and
all repairs, maintenance, replacements, relocations, concealment by screening
and the removal of the satellite antenna transmission/reception device in a
first-class manner pursuant to Landlord’s reasonable rules and regulations and
in a manner that is compatible with the appearance, reputation, dignity and
character of the corporate center of which the Building forms a part.  Tenant covenants that the

 

59

 

satellite
antenna transmission/reception device shall not interfere with the rights,
health or welfare of any person.  Tenant
agrees that Landlord may install and operate, and may permit the installation
and operation by others of, additional satellite antenna transmission/reception
devices on the roof of the Building. 
Landlord shall in no event be responsible if, for any reason whatsoever,
Tenant’s satellite antenna transmission/reception device does not perform to
the expectations of Tenant.  If there is
an Event of Default under this Lease, Landlord may, at Tenant’s expense, remove
said satellite antenna transmission/reception device and repair any damage or
injury that said satellite antenna transmission/reception device or the removal
thereof may have caused.

 

55.2                          Tenant shall,
prior to the expiration or earlier termination of this Lease and at Tenant’s
expense, remove the satellite antenna transmission/reception device and repair
any damage or injury caused by the removal of said satellite antenna transmission/reception
device.  Failure to comply with the
immediately preceding sentence by Tenant within five (5) days after the
Expiration Date or earlier termination of this Lease shall constitute a holding
over of the Demised Premises by Tenant until such time as the satellite antenna
transmission/reception device is removed and any damage or injury caused by
such removal is repaired.  Upon the
expiration of earlier termination of this Lease, Landlord, at its sole option,
may, at Tenant’s expense, remove the satellite antenna transmission/reception
device, keep the satellite antenna transmission/reception device without
compensation to Tenant or discard it without liability to Landlord and repair
any damage or injury that said satellite antenna transmission/reception device
or the removal thereof may have caused. 
Tenant hereby releases Landlord from, and, upon Landlord’s demand, shall
defend, indemnify and hold Landlord harmless against any liabilities and
expenses that may arise with regard to said satellite antenna
transmission/reception device. 
Furthermore, in connection with said satellite antenna
transmission/reception device, Tenant shall procure and maintain comprehensive
general liability insurance in compliance with each of the requirements set forth
in Article 30 hereof.

 

56.                               RIGHT
OF FIRST OFFER

 

56.1                          Landlord agrees
that if any unit of space on the third (3rd) floor of the Building, having a standard, regular
and marketable configuration, that is contiguous to the Demised Premises, as
same are constituted on the Date of Lease, shall become vacant and available,
then, in any such case, before offering said unit of space (the “Option Space”) to any other party (except the occupant
thereof or any party having a superior or prior right of refusal, negotiation,
first offer or expansion), Landlord will first offer to Tenant the right to
include the Option Space within the Demised Premises on the Inclusion Date (as
hereinafter defined) upon all of the terms and conditions of this Lease, as if
the Option Space had been part of the Demised Premises on the Commencement
Date, except as specifically set forth hereinafter.  The “Inclusion Date”
shall be the date on which Tenant exercises its option pursuant to the terms of
this Article.

 

(a)                                   The Minimum Rent payable
with respect to the Option Space shall commence on the Inclusion Date and shall
be (i) the Market Rent (as defined in clause (b) below) which shall in no event
be less than (ii) the product of (1) the Adjusted Minimum Rent per square foot
with respect to the Demised Premises on the date Landlord’s offer is made and (2)
the rentable square foot area of the Option Space.

 

(b)                                  “Market Rent” shall mean the
projected fair market rent

 

60

 

for
the Option Space as of the Inclusion Date based upon the rents generally in
effect for comparable office space in comparable condition, in the area in
which the Building is located.  Market
Rent (for the purposes of determining the Minimum Rent for the Option Space only)
shall be determined on what is commonly known as “gross” basis; that is, in
computing Market Rent it shall be assumed that all real estate taxes and
operating expenses for customary services are included in such Market Rent and
are not passed through to Tenant as separate additional charges.

 

(c)                                   Landlord shall notify Tenant
(“Landlord’s Determination Notice”) of
Landlord’s determination of the Market Rent after Tenant exercises its option
to include the Option Space within the Demised Premises on the Inclusion
Date.  If Tenant disagrees with Landlord’s
determination, Tenant shall notify Landlord (“Tenant’s
Notice of Disagreement”) within fifteen (15) days after receipt of
Landlord’s Determination Notice.  Time
shall be of the essence with respect to Tenant’s Notice of Disagreement, and
the failure of Tenant to give such notice within the time period set forth
above shall conclusively be deemed an acceptance by Tenant of the Market Rent
as determined by Landlord and a waiver by Tenant of any right to dispute such
Market Rent.  If Tenant timely gives its
Tenant’s Notice of Disagreement, then, the Market Rent shall be determined as
follows:  Landlord and Tenant shall,
within thirty (30) days after the date on which Tenant’s Notice of Disagreement
was given, each appoint an Appraiser (as hereinafter defined) for the purpose
of determining the Market Rent.  An “Appraiser” shall mean a duly qualified impartial real estate appraiser who
is a member of the American Institute of Real Estate Appraisers, or a duly licensed
real estate broker in the State of New Jersey, both having at least ten (10) years’
professional experience with commercial office buildings in the area in which
the Building is located.  In the event
that the two (2) Appraisers so appointed fail to agree as to the Market Rent
within a period of thirty (30) days after the appointment of the second (2nd) Appraiser, such two (2) Appraisers
shall forthwith appoint a third (3rd) Appraiser who alone shall make a determination
within thirty (30) days thereafter.  If
such two (2) Appraisers fail to agree upon such third (3rd) Appraiser within ten (10) days
following the last thirty (30) day period, such third (3rd) Appraiser shall be
appointed by a Presiding Judge of the Superior Court of the State of New Jersey
for the County in which the Building is located.  Such two (2) Appraisers or the third (3rd) Appraiser, as the case may
be, shall proceed with all reasonable dispatch to determine the Market
Rent.  The decision of such Appraiser(s) shall
be final; such decision shall be in writing and a copy shall be delivered
simultaneously to Landlord and to Tenant. 
Tenant shall pay Landlord, Adjusted Minimum Rent on the Option Space at
the rate set forth in Section 56.1(a) (ii) hereof until such decision is so delivered.  If the Market Rent as determined above is in
excess of actual rent paid, then, Tenant, within ten (10) business days of
demand, shall pay to Landlord the difference between the actual rent paid and
the Market Rent from the Inclusion Date. 
Landlord and Tenant shall each be responsible for and shall pay the fee
of the Appraiser appointed by them respectively, and Landlord and Tenant shall
share equally the fee of the third (3rd) Appraiser. 
Promptly upon determination of the Market Rent, Tenant shall execute and
deliver an amendment to this Lease in a form reasonably satisfactory to
Landlord reflecting the inclusion of the Option Space within the Demised
Premises on the Inclusion Date.

 

56.2                          Landlord shall
make the foregoing offer in writing and Tenant shall have the right to exercise
such option with respect to the Option Space if there is no Event of Default
under this Lease and the Tenant named on the first and last page of the Lease
(or any permitted sublessee or assignee allowed under

 

61

 

Section
16.18 hereof) is in occupancy of fifty percent (50%) or more of the entire
Demised Premises, as same are constituted on the Commencement Date.  Tenant may only exercise such option by
written notice received by Landlord within five (5) days after Landlord makes
such offer to Tenant.  In no event shall
Landlord be required to offer Tenant the Option Space during the last year of
the term.  Tenant shall accept the Option
Space in its “as is” physical condition as of the Inclusion Date and agrees
that Landlord will not be required to do any work or perform any services
therein to prepare the Option Space for Tenant’s initial occupancy
thereof.  If Tenant does not accept the
offer made by Landlord pursuant to the provisions of this Article 56 with
respect to the Option Space, Landlord shall be under no further obligation to
Tenant with respect to the Option Space or any part thereof or any other space
in the Building that becomes vacant and available and Tenant shall have forever
waived and relinquished its right to the Option Space and any part thereof and
any other space in the Building that becomes vacant and available and Landlord
shall at any and all times thereafter be entitled to lease such space in whole or
in part, or in whole or in parts in conjunction with any other space, to others
at such rental and upon such terms and conditions as Landlord, in its sole
discretion may desire whether such rental terms, provisions and conditions are
the same as those offered to Tenant or more or less favorable.  Tenant agrees not to acquire the Option Space
pursuant to this Article 56 for the primary purpose of subletting or otherwise
disposing of the same or any part thereof to others.

 

56.3                          If the Option
Space shall not be available for Tenant’s occupancy on the Inclusion Date for
any reason including the holding over of the prior tenant, then, Landlord and
Tenant agree that the failure to have such Option space available for occupancy
by Tenant shall in no way affect the validity of this Lease or the inclusion of
the Option Space within the Demised Premises as of the Inclusion Date or the
obligations of Landlord and Tenant hereunder, nor shall the same be construed
in any way to extend the term of this Lease.

 

57.                               USA
PATRIOT ACT

 

57.1                          Tenant
represents, warrants and covenants that neither Tenant nor any of its partners,
officers, directors, members or shareholders: 
(i) is listed on the Specially Designated Nationals and Blocked Persons
List maintained by the Office of Foreign Asset Control, Department of the
Treasury (“OFAC”) pursuant to Executive Order No. 13224, 66 Fed. Reg. 49079
(Sept. 25, 2001)(“Order”)and all applicable provisions of Title III of the USA
PATRIOT ACT (Public Law No. 107-56 (October 26, 2001)); (ii) is listed on the
Denied Persons List and Entity List maintained by the United States Department
of Commerce; (iii)is listed on the List of Terrorists and List of Disbarred
Parties maintained by the United States Department of State; (iv) is listed on
any list or qualification of “Designated Nationals” as defined in the Cuban
Assets Control Regulations 31 C.F.R. Part 515; (v) is listed on any other
publicly available list of terrorists, terrorist organizations or narcotics
traffickers maintained by the United States Department of State, the United
States Department of Commerce or any other governmental authority or pursuant
to the Order, the rules and regulations of OFAC (including, without limitation,
the Trading with the Enemy Act, 50 U.S.C. App. 1-44; the International
Emergency Economic Powers Act, 50 U.S.C. §§ 1701-06; the unrepealed provision
of the Iraqi Sanctions Act, Publ. L.No. 101-513; the United Nations
Participation Act, 22 U.S.C. § 2349 aa-9; The Cuban Democracy Act, 22 U.S.C. §§
60-01-10; The Cuban Liberty and Democratic Solidarity Act, 18.U.S.C. §§ 2332d
and 233; and The Foreign Narcotic Kingpin Designation Act, Publ. L. No. 106-201,
all as may be amended from time to time); or any other applicable requirements
contained in any enabling legislation or other

 

62

 

Executive
Orders in respect of the Order (the Order and such other rules, regulations,
legislation or orders are collectively called the “Orders”);
(vi) is engaged in activities prohibited in the Orders; or (vii) has been
convicted, pleaded nolo contendere, indicted, arraigned or custodially detained
on charges involving money laundering or predicate crimes to money laundering,
drug trafficking, terrorist-related activities or other money laundering
predicate crimes or in connection with the Bank Secrecy Act (31 U.S.C. §§ 5311,
et seq.).

 

58.                               SUPPLEMENTAL
HVAC

 

58.1                          So long as
there is no Event of Default under this Lease, Tenant may, at its sole cost and
expense, install one (1) supplemental heat, ventilation and air-conditioning
system, provided Landlord has first approved in writing, which approval
shall not be unreasonably withheld, delayed or conditioned:  (1) Tenant’s plans and specifications
therefor; and (2) the contractor installing same and further provided
that Tenant, at its expense, obtains, keeps current and immediately delivers to
Landlord an original counterpart of all necessary municipal approvals.  The location of the supplemental heat,
ventilation and air-conditioning system shall be solely determined in the
absolute and unfettered discretion of Landlord and Tenant shall strictly abide
by Landlord’s determination.  In
addition, Tenant’s right to install a supplemental heat, ventilation and
air-conditioning system shall be expressly conditioned upon and subject to
Landlord and Tenant first entering into a mutually acceptable license agreement
which shall, among other things, require Tenant to pay Landlord a reasonable
monthly license fee.  Tenant agrees to
promptly comply with and strictly abide by, at its sole expense, any rules and
regulations that Landlord may reasonably promulgate in connection with the
installation, relocation, operation, repair, maintenance, replacement,
concealment by screening and the removal of the supplemental heat, ventilation
and air-conditioning system.  Tenant
agrees to perform the installation and all repairs, maintenance, replacements,
relocations, concealment by screening and the removal of the supplemental heat,
ventilation and air-conditioning system in a first-class manner pursuant to
Landlord’s reasonable rules and regulations and in a manner that is compatible
with the appearance, reputation, dignity and character of the corporate center
of which the Building forms a part. 
Tenant covenants that the supplemental heat, ventilation and
air-conditioning system shall neither interfere with the rights, health or
welfare of any person nor cause any vibration, noise or odor that Landlord
deems objectionable.  Tenant agrees that
Landlord may install and operate, and may permit the installation and operation
by others of, additional supplemental heat, ventilation and air-conditioning
systems on the Real Estate.  Landlord
shall in no event be responsible if, for any reason whatsoever, Tenant’s
supplemental heat, ventilation and air-conditioning system does not perform to
the expectations of Tenant.  If there is
an Event of Default under this Lease, Landlord may, at Tenant’s expense, remove
said supplemental heat, ventilation and air-conditioning system and repair any
damage or injury that said supplemental heat, ventilation and air-conditioning
system or the removal thereof may have caused.

 

58.2                          Tenant shall,
prior to the expiration or earlier termination of this Lease and at Tenant’s
expense, remove the supplemental heat, ventilation and air-conditioning system
and repair any damage or injury caused by the removal of said supplemental
heat, ventilation and air-conditioning system. 
Failure to comply with the immediately preceding sentence by Tenant
within five (5) days after the Expiration Date or earlier termination of this
Lease shall constitute a holding over of the Demised Premises by Tenant until
such time as the supplemental heat, ventilation and air-conditioning system is
removed and any

 

63

 

damage
or injury caused by such removal is repaired. 
Upon the expiration of earlier termination of this Lease, Landlord, at
its sole option, may, at Tenant’s expense, remove the supplemental heat,
ventilation and air-conditioning system, keep the supplemental heat,
ventilation and air-conditioning system without compensation to Tenant or
discard it without liability to Landlord and repair any damage or injury that
said supplemental heat, ventilation and air-conditioning system or the removal
thereof may have caused.  Tenant hereby
releases Landlord from, and, upon Landlord’s demand, shall defend, indemnify
and hold Landlord harmless against any liabilities and expenses that may arise
with regard to said supplemental heat, ventilation and air-conditioning
system.  Furthermore, in connection with
said supplemental heat, ventilation and air-conditioning system, Tenant shall
procure and maintain comprehensive general liability insurance in compliance
with each of the requirements set forth in Article 30 hereof.

 

59.                               EXTERIOR
SIGNAGE

 

59.1                          If Tenant
leases in writing from Landlord no fewer than 15,000 rentable square feet of
office space in the Building, then, in that case, Landlord, at Tenant’s sole
cost and expense and only after Landlord receives from Tenant plans and
specifications reasonably acceptable to Landlord, shall include the name and
corporate logotype of Tenant on a portion of the remaining unused facia of the
outside Building identification monument (the “Monument”)
that stands on the Real Estate as of the Date of Lease.  Notwithstanding anything contained to the
contrary in the immediately preceding sentence, Landlord shall have no
obligation to identify Tenant on the Monument if the Monument is removed from
the Real Estate or if inadequate space is available on the Monument for Tenant’s
name and/or corporate logotype.  Landlord
shall determine in its absolute discretion, the color, size and style of any
signage on the Monument.  Tenant shall,
at its sole cost and expense, fully and promptly cooperate with Landlord in
connection with Landlord’s efforts to obtain any necessary municipal approvals.

 

59.2                          If:  (i) an Event of Default occurs under this
Lease; (ii) Tenant assigns this Lease, except to an assignee expressly
permitted under Section 16.18(a) - (d) hereof; (iii) Tenant sublets all or any
part of the Demised Premises so that Tenant at any time occupies fewer than
15,000 rentable square feet of office space in the Building; and/or (iv) for
any reason whatsoever, Tenant occupies fewer than 15,000 rentable square feet
of office space in the Building, then, (A) Tenant shall have no rights and
Landlord shall have no obligations under this Article 59 and (B) if Landlord
has already included the name and corporate logotype of Tenant on the Monument,
Landlord may, at Tenant’s expense, remove the name and/or corporate logotype of
Tenant from the Monument and may restore, at Tenant’s sole expense, any damage
or injury that said removal may have caused. 
Upon the expiration or earlier termination of this Lease, Landlord may,
at Tenant’s expense, remove Tenant’s name and/or corporate logotype from the
Monument and may restore, at Tenant’s sole expense, any damage or injury that
said removal may have caused.  Tenant’s
obligation to pay Landlord in accordance with this Section 59.2 shall survive
the expiration or earlier termination of this Lease.  If, by the date falling thirty (30) days
after the expiration or earlier termination of the Lease, (I) Tenant’s name and
corporate logotype are not removed from the Monument and (II) all damage or
injury that said removal may have caused is not fully restored, then, Tenant
shall be deemed a holdover tenant and liable under Article 21 hereof as if the
holdover first occurred on the expiration or earlier termination of the Lease.

 

64

 

IN
WITNESS WHEREOF, the parties hereto have entered into this Lease as of the day
first set forth above.

 

	
  WITNESSED
  BY:

  	
  LANDLORD:

  
	
   

  	
  PW/MS
  OP SUB I, LLC

  
	
   

  	
  By:

  	
  The
  Gale Real Estate Advisors

  
	
   

  	
   

  	
  Company,
  L.L.C., its Authorized

  
	
   

  	
   

  	
  Representative

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Marc Leonard Ripp, Esq.

  	
   

  	
  By:

  	
  /s/
  Mark Yeager

  
	
   

  	
  Marc
  Leonard Ripp, Esq.

  	
   

  	
  Mark Yeager

  
	
   

  	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ATTESTED BY:

  	
  MANAGING
  AGENT::

  
	
   

  	
  PW/MS
  MANAGEMENT CO., INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Marc Leonard Ripp, Esq.

  	
   

  	
  By:

  	
  /s/
  Mark Yeager

  
	
   

  	
  Marc
  Leonard Ripp, Esq.

  	
   

  	
  Mark Yeager

  
	
   

  	
  Corporate
  Secretary

  	
   

  	
  President

  
	
   

  	
   

  	
   

  	
   

  
	
  APPLY CORPORATE SEAL HERE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ATTESTED BY:

  	
  TENANT:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  INFORMATION
  STRATEGIES GROUP, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  George Germano

  	
   

  	
  By:

  	
  /s/
  Brian Leigh

  
	
   

  	
   

  	
   

  	
  Brian Leigh

  
	
  Name:

  	
   

  	
   

  	
   

  	
  Managing Director

  
	
   

  	
  George
  Germano

  	
   

  	
   

  	
   

  
	
   

  	
  Corporate
  Secretary

  	
   

  	
   

  
	
   

  	
  and
  Managing Director

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  APPLY CORPORATE SEAL HERE

  	
   

  	
   

  

 

65

 

EXHIBIT A

 

RENTAL PLAN

 

 

66

 

EXHIBIT B

 

LEGAL DESCRIPTION OF LAND

 

 

LEGAL DESCRIPTION

20 WATERVIEW BOULEVARD

 

Block 421, Lot 29.01

 

Township
of Parsippany/Troy Hills, Morris County, NJ

 

Being
known and designated as Lot 29.01 in block 421 as shown on a map entitled in
part.  “Final Plat — Waterview Corporate
Center — Section II, Sheets 1 and 2 of 2”, Studer and McEldowney drawings No. 1824-F
and 1825-F; which maps are about to be filed at the Morris County Clerk’s
offices.  Being further described as
follows:

 

BEGINNING
at a point in the northerly sideline of Waterview Boulevard, corner also to Lot
29.02 and running form said beginning point,

 

1.                                       along the
northerly sideline of Waterview Boulevard and by a line which curves to the
left having a radius of 955 feet and an arch length of 800.25 feet whose chord
bears south 77 degrees 03 minutes 06 seconds west 777.04 feet to a point in
said sideline, corner to lands remaining to Lot 29 at this time thence, along
said Lot 29.

 

2.                                       north 34
degrees 21 minutes 58 seconds west 936.81 feet to a point in the line of lands
know as Section III of Intervale Heights thence, along said line of lots known
as Intervale Heights Section III.

 

 

3.                                       north 82
degrees 41 minutes 50 seconds east 1,154.67 feet to a point, corner also to Lot
29.02; thence, along said lot,

 

4.                                       south 10
degrees 43 minutes 34 seconds east 758.90 feet to the place of beginning.

 

All
bearings being in accordance with New Jersey Grid North and the tract or parcel
containing a calculated area of 16.83 acres of land, more or less, as surveyed
by H. Clay McEldowney, P.E., L.S., New Jersey License No. 20891.

 

Subject
to a 10-foot wide easement to Jersey Central Power & Light Co. which runs
along course No. 1 described above.  Said
assement is recorded in Book 2816 of Deeds on Page 317 at the Morris County
Clerk’s office.

 

Subject
also to two drainage easements as shown on the above-described plat about to be
filed.  Said drainage easements are also
more particularly shown on filed map No. 4471 at the Morris County Clerk’s
office entitled final plat Waterview Corporate Center Section I.

 

Subject
to any other easements or restrictions of record.

 

2

 

Being
a portion of Lot 29 as shown on final plat Waterview Corporate Center Section I
which map is on file at the Morris County Clerk’s office as map No. 4471.

 

Also
being a portion of the same lands and premises which were conveyed by Janice H.
Levin and others to Bellamead Development Corporation by deed dated June 8,
1984, a nd recorded at the Morris County Clerk’s office in Book 2731 of Deeds
on Page 997.

 

3

 

EXHIBIT C

 

CLEANING SERVICE RIDER

 

The
following summarizes basic cleaning services to be provided by Landlord on
business days (excluding weekends and Legal Holidays) and to be included in
Operating Costs.

 

GENERAL CLEANING OF OFFICE AREA

 

Cleaning
Services provided five (5) business days per week.

 

Cleaning
hours Monday through Friday, after 5:30 p.m. and before 8:00 a.m. of the
following business day.

 

On
the last day of the week the work will be done after 5:30 p.m. Friday, but
before 8:00 a.m. Monday.

 

Furniture
will be dusted and desk tops will be wiped clean.  However, desks with loose papers or other
matter on the top will not be cleaned.

 

Window
sills and baseboards to be dusted and washed as reasonably necessary.

 

Office
wastepaper baskets will be emptied, provided garbage, trash and other refuse is
separated as required pursuant to any Law or Rule and Regulation.

 

Cartons
or refuse in excess of that which can be placed in wastepaper baskets will not
be removed.  Tenants are required to
place such unusual refuse in trash cans or a spot designated by Landlord.

 

Cleaner
will not remove nor clean tea or coffee cups or similar containers; also, if
such liquids are spilled in wastebaskets, the wastebaskets will be emptied but
not otherwise cleaned.  Wastepaper
baskets shall be lined with vinyl or plastic bags.

 

Exposed
sheets of vinyl composition tile floors will be swept daily.

 

Exposed
sheets of carpets will be swept daily and vacuumed weekly.

 

Seat
cushions on chairs, sofas, etc., will be vacuumed weekly, unless cluttered with
paper or other matter.

 

LAVATORIES

 

All
lavatory floors to be swept and washed with disinfectant nightly.

 

Tile
walls and dividing partitions to be washed and disinfected weekly.

 

Basins,
bowls, urinals to be washed and disinfected daily.

 

Mirrors,
shelves, plumbing work, bright work, and enamel surfaces cleaned nightly.

 

Waste
receptacles and wash dispensaries to be filled with appropriate tissues, towels
and soap supplied by Landlord.

 

C-1

 

MAIN
LOBBY, ELEVATORS, CORRIDORS AND BUILDING EXTERIOR

 

Wipe
and wash all floors in main lobby nightly.

 

Wipe
and/or vacuum elevator floor nightly.

 

Polish
floors weekly in elevator.

 

Elevator
cab to be wiped clean daily and thoroughly cleaned and polished weekly.

 

Lobby
walls and glass, to be wiped clean daily and thoroughly cleaned and polished
weekly.

 

Lobby
entrance doors and windows to be washed weekly.

 

Windows
will be cleaned when necessary, but not less than once each year, inside and
outside.

 

MISCELLANEOUS SERVICES

 

Sweep
sidewalk in front of Building entrances daily.

 

Remove
snow and ice from sidewalks and Parking Areas as soon as reasonably possible
(but not between the hours of 6:00 p.m. and 8:00 a.m.) when accumulation
reaches 3” or more, to the extent necessary to make such sidewalks and parking
areas reasonably safe and usable.

 

Keep
stairways clean.        ‘

 

Keep
Custodian’s Rooms and Mechanical Rooms clean and in orderly condition at all
times.

 

WORK EXCLUDED

 

Cleaning
services do not include the washing, polishing, or waxing of furniture, file
cabinets, wastebaskets or other personal property of Tenant.  When such work is necessary, Tenant may make
necessary arrangements for same directly with Landlord’s cleaning employees or
contractors.

 

C-2

 

EXHIBIT D

 

LEGAL HOLIDAYS

 

(a)           The day(s) officially celebrated by
the State of New Jersey for the following holidays:

 

New
Year’s Day

Martin
Luther King’s Birthday

Washington’s
Birthday

Memorial
Day

Independence
Day

Labor
Day

Thanksgiving

Christmas
Day

 

(b)           Such other holidays observed from
time to time by the governments of the United States of America and/or the
State of New Jersey, as designated by Landlord to Tenant in writing.

 

 

EXHIBIT E

 

RULES AND REGULATIONS

 

1.             The sidewalks, entrances,
driveways, passageways, courts, elevators, vestibules, stairways, corridors or
halls shall not be obstructed or encumbered by Tenant or used for storage or
for any other purpose other than for ingress to or egress from the Demised
Premises and for delivery of merchandise and equipment to or from the Demised
Premises in a prompt and efficient manner, using elevators and passageways
reasonably designated for such delivery by Landlord.  There shall not be used in any space, or in
the public halls of the Building, either by Tenant or by jobbers or others in
the delivery or receipt of merchandise, any hand trucks, except those equipped
with rubber tires and sideguards.  Tenant
shall provide protection of all floor surfaces during the moving of furniture
or heavy equipment as may be reasonably required by Landlord or its Managing
Agent.

 

2.             Freight, furniture, business
equipment, merchandise and bulky matter of any description shall be delivered
to and removed from the Demised Premises only on the freight elevators and
through the service entrances and corridors, and only during hours and in a
manner reasonably approved by Landlord. 
Landlord shall not charge Tenant for any permitted use of the Building
freight elevator that occurs on or before the Commencement Date.  Landlord reserves the right to inspect all
freight to be brought into the Building and to exclude from the Building all
freight which violates any of these Rules and Regulations or this Lease.

 

3.             The water and wash closets and
plumbing fixtures shall not be used for any purposes other than those for which
they were designed or constructed and no sweepings, rubbish, rags, sanitary
napkins, acids or other substances shall be deposited therein, and the expense
of any breakage, stoppage, or damage resulting from the violation of this Rule by
Tenant shall be borne by Tenant.

 

4.             No carpet, rug or other article
shall be hung or shaken out of any window of the Building; and Tenant shall not
sweep or throw or permit to be swept or thrown from the Demised Premises any
dirt or other substances into any of the corridors or halls, elevators, or out
of the doors or windows or stairways of the Building and Tenant shall not use,
keep or permit to be used or kept any foul or noxious gas or substance in the Demised
Premises, or permit or suffer the Demised Premises to be occupied or used in a
manner offensive or objectionable to Landlord or other occupants of the
Building by reason of noise, odors and/or vibrations, or unreasonably interfere
in any way with other tenants or those having business therein, nor shall any
animals or birds be kept in or about the Building.  Smoking or carrying lighted cigars or
cigarettes in the elevators or other common areas of the Building is
prohibited.

 

5.             No awnings, signs or other
projections shall be attached to the outside walls of the Building without the
prior written consent of Landlord, which may be withheld in Landlord’s sole
discretion.

 

6.             No sign, advertisement, notice or
other lettering shall be exhibited, inscribed, painted or affixed by Tenant on
any part of the outside of the Demised Premises or the Building or on the
inside of the Demised Premises if the same is visible from the outside of the
Demised Premises without the prior written consent of Landlord (which consent
shall not be unreasonably withheld, delayed or conditioned), except that the
name of Tenant may

 

E-1

 

appear
on the entrance door of the Demised Premises in lettering reasonably approved
by Landlord.  In the event of the
violation of the foregoing by Tenant, Landlord may remove and dispose of same
without any liability, and may charge the actual, out-of-pocket and reasonable
expense incurred by such removal to Tenant. 
Any interior listings and directories shall be inscribed, painted or
affixed for Tenant only by Landlord or Managing Agent at the expense of such
Tenant and shall be of a size, color and style reasonably acceptable to
Landlord or Managing Agent.

 

7.             Tenant shall not mark, paint, drill
into, or in any way deface any part of the Building. No boring, cutting or
stringing of wires shall be permitted, except with the prior written consent of
Landlord, and as Landlord may reasonably direct.  Tenant shall not lay linoleum, or other
similar floor covering, so that the same shall come in direct contact with the
floor of the Demised Premises, and, if linoleum or other similar floor covering
is desired to be used, an interlining of builder’s deadening felt shall be
first affixed to the floor, by a paste or other material, soluble in water,
pursuant to Landlord’s reasonable direction, the use of cement or other similar
adhesive material being expressly prohibited.

 

8.             No additional locks or bolts of any
kind shall be placed upon any of the doors or windows by Tenant, nor shall any
changes be made in existing locks or mechanisms thereof.  Tenant shall give Landlord or Managing Agent
a duplicate or master key or access card or code for each and every door in the
Demised Premises.  Tenant must, upon the termination
of its tenancy, restore to Landlord all keys or access cards to the Demised
Premises, the Building and any doors therein, either furnished to, or otherwise
procured by, Tenant, arid in the event of the loss of any keys or access cards,
so furnished, Tenant shall pay to Landlord the actual, out-of-pocket and
reasonable cost thereof.  Tenant, at its
expense, shall be responsible for repair to all doors and locks which are in
violation of this Rule, and shall pay any alarm fee resulting from Landlord or
Managing Agent’s entrance into the Demised Premises as permitted under this
Lease.

 

9.             Canvassing, soliciting,
pamphletting and peddling in the Building and about the sidewalks, driveways
and Parking Areas adjacent thereto are prohibited and Tenant shall cooperate to
prevent the same.  Tenant shall report
all peddlers, solicitors and beggars to Managing Agent or as Landlord otherwise
requests.

 

10.           Landlord reserves the right, but
shall have no obligation, to exclude from the Building between the hours of 6 P.M.
and 8 A.M., and at all hours on Sundays and Legal Holidays all persona who do
not present a pass to the Building signed by Landlord or Managing Agent.  Landlord will furnish passes to persons for
whom Tenant requests same.  Tenant shall
be responsible for all persons for whom it requests such pass and shall be
liable to Landlord for all acts of such persons.

 

11.           Landlord shall have the right to
prohibit any advertising by Tenant which in Landlord’s reasonable opinion,
tends to impair the reputation of the Building or its desirability as a
Building for first-class offices, and upon written notice from Landlord, Tenant
shall refrain from or discontinue such advertising.  No distress sale, fire sale, bankruptcy sale,
liquidation, relocation sale, closing sale, going-out-of business sale,
auction, sheriff’s sale, receiver’s sale, or any other sale that, in Landlord’s
reasonable opinion, adversely affects the reputation of the Building or
suggests that the business operations are to be discontinued in the Demised
Premises shall be conducted or advertised in or about the Demised Premises.

 

12.           Tenant shall not bring or permit to
be brought or kept in or on the Demised Premises, any inflammable, combustible
or

 

E-2

 

explosive
fluid, material, chemical or substance, or any hazardous substance in violation
of Law or of this Lease (except for normal and customary de minimus amounts of
routine office and cleaning supplies typically housed in a first-class executive
and administrative office), or cause or permit any odors of cooking or other
processes, or any unusual or other objectionable odors to permeate in or
emanate from the Demised Premises.

 

13.           If the Building contains central air
conditioning and ventilation, Tenant agrees to keep all windows and exterior
doors closed at all times and to abide by all reasonable rules and regulations
issued by Landlord with respect to such services.

 

14.           Tenant shall not move any safe, heavy
machinery, heavy equipment, bulky matter, or fixtures into or out of the
Building without Landlord’s prior written consent, which consent shall not be
unreasonably withheld, delayed or conditioned. 
If such safe, machinery, equipment, bulky matter or fixtures requires
special handling, all work in connection therewith shall comply with all Laws
applicable thereto and shall be done during such hours as Landlord may
reasonably designate.

 

15.           To the extent required by applicable
Laws or Governmental Authorities, Tenant shall separate its rubbish into any
required categories, including, but not limited to, food products, paper, solid
wastes, metals and glass.  Any excess
trash or garbage which Tenant generates in excess of that generated by a normal
office user, and all garbage from Tenant’s food service operation, if any,
shall be removed by Landlord upon notice from Tenant, at Tenant’s sole cost and
expense.  Tenant shall not dispose of any
hazardous substance or waste in wastebaskets, boxes, or in Landlord’s dumpster
or trash compactor.

 

16.           Tenant shall take reasonable action
to ensure that its Visitors do not (a) utilize any parking spaces designated
for the use of others, nor (b) park in any driveways, fire lanes or other areas
not striped for vehicular parking.

 

17.           No portion of the driveways or
Parking Areas serving the Building shall be used for washing, maintaining, oil
changing, repairing, or installing or replacing parts in any vehicle, except to
the extent that repairs are reasonably necessary to fix a flat tire or start an
engine enabling the vehicle to be driven from the Real Estate.  No vehicle shall be towed from the Real
Estate by Tenant, or its Visitors, except after Tenant informs Landlord or
Managing Agent of such removal by telephone, in person or in writing.  Any vehicle parked on the Real Estate without
proper registration and inspection or for longer than seven (7) continuous days
may be removed by Landlord, which removal shall be at Tenant’s expense if the
property owned or used by Tenant or its Visitors or invitees and is not removed
within five (5) business days after notice to Tenant to do so.

 

E-3

 

18.           Tenant shall be solely liable for,
and shall promptly pay, all costs, charges and expenses directly or indirectly
related in any way to work, alterations, decorations, installations,
renovations or improvements performed after the Commencement Date by Tenant or
its Agents in or about the Demised Premises, including, but not limited to,
permit or inspection fees, costs for electricity, HVAC, temporary or portable
toilets and hot and cold water, freight elevator charges, costs for trash
removal and disposal, freight dock expenses, additional security charges,
insurance premiums and cleaning costs.

 

E-4

 

EXHIBIT F

 

LANDLORD’S BUILDING WORK

 

·                  Upgrade the existing cafeteria with new
furniture in the seating area, artwork, vet flooring and carpeting.  Create a countertop eating area with bar
stools.

 

·                  Enhance the landscaping in the patio area by
installing new trees and plant materials and some seating along the wall.

 

·                  Purchase new furniture and artwork for the
first floor lobby.

 

·                  Remove existing furniture in main lobby (2nd floor) and purchase new furniture for the four
seating areas.

 

·                  Install a plasma tv in one of the seating
areas which overlooks the patio.

 

·                  Purchase artwork for the atrium.

 

·                  Install a new directory.

 

·                  Add two signature waterfall features in the 2nd floor atrium.

 

 

FIRST AMENDMENT TO LEASE

 

1.                                      PARTIES

 

1.1                                 THIS AGREEMENT made 31st  day of December 2008 is between 20
WATERVIEW SPE LLC (“Landlord”) whose address is c/o Mack-Cali Realty
Corporation, 343 Thornall Street, P.O. Box 7817, Edison, New Jersey 08818-7817
07016 and TANGOE, INC. (“Tenant”), whose address is 20 Waterview Boulevard,
Parsippany-Troy Hills, New Jersey 07054.

 

2.                                      STATEMENT
OF FACTS

 

2.1                                 Landlord’s predecessor in
interest, PW/MS OP Sub I, LLC, and Tenant’s predecessor in interest,
Information Strategies Group, Inc., previously entered into a Lease dated July 14,
2004 (hereinafter collectively referred to as the “Lease”) covering
approximately 10,497 gross rentable square feet on the third (3rd) floor (“Existing Premises”)
in the building located at 20 Waterview Boulevard, Parsippany-Troy Hills, New
Jersey 07054 (“Building”); and

 

2.2                                 The Term of the Lease
expires on December 31, 2009 (“Expiration Date”); and

 

2.3                                 Tenant desires to expand the
Existing Premises by leasing approximately 4,193 gross rentable square feet on
the third (3rd) floor of the
Building (“Expansion Premises”), as shown on Exhibit A attached hereto and made
a part hereof; and

 

2.4                                 The parties desire to extend
the Term of the Lease for a period to commence on January 1, 2010; and

 

2.5                                 The parties desire to amend
certain terms of the Lease as set forth below.

 

3.                                      AGREEMENT

 

NOW, THEREFORE, in consideration of the terms, covenants and conditions
hereinafter set forth, Landlord and Tenant agree as follows:

 

3.1                                 The above recitals are
incorporated herein by reference.

 

3.2                                 All capitalized and
non-capitalized terms used in this Agreement which are not separately defined
herein but are defined in the Lease shall have the meaning given to any such
term in the Lease.

 

3.3                                 The Term applicable to the
Expansion Premises shall commence on the Expansion Premises Effective Date (as
defined below) and shall terminate at 11:59 p.m. on the last day of the month
in which the day prior to the three (3) year anniversary of the Expansion
Premises Effective Date occurs (the “New Expiration Date”).

 

3.4                                 Landlord shall complete
improvement work to the Expansion Premises in accordance with Exhibit B
attached hereto and made part hereof at a mutually agreeable time after the
date of this Agreement.

 

3.5                                 The effective date
applicable to the Expansion Premises (the “Expansion Premises Effective Date”)
shall be the earlier of (i) the day Landlord substantially completes the
improvements to be made to the Expansion Premises in accordance with Exhibit B
attached hereto and made part hereof or (ii) the date Tenant or anyone claiming
under or through Tenant shall occupy the Expansion Premises.

 

3.6                                 From and after the Expansion
Premises Effective Date, the following shall be effective:

 

 

a.                                       Landlord shall
lease to Tenant and Tenant shall hire from Landlord the Expansion Premises as
shown on Exhibit A attached hereto and made part hereof.

 

b.                                      The Premises
shall be defined as approximately 14,690 gross rentable square feet on the
third (3rd) floor of the
Building and Section 1.1 (g) of the Lease shall be deemed amended
accordingly.

 

c.                                       Tenant shall
pay to Landlord an additional Security in the amount of TWENTY-TWO THOUSAND
THIRTEEN AND 25/100 DOLLARS ($22,013.25), so that the total Security under the
Lease shall be SIXTY- FOUR THOUSAND EIGHT HUNDRED SIX AND 03/100 DOLLARS
($64,806.03). The Security shall be governed by the provisions of Article 8
for the Lease, except that Section 8.7 shall be deemed modified be
deleting “may” in the first (1st) line therein and substituting “shall” in place
thereof.  Section 8.9 is hereby
deleted in its entirety.

 

d.                                      In addition to
the Minimum Rent payable applicable to the Existing Premises, Tenant shall pay
Landlord Minimum Rent applicable to the Expansion Premises which shall accrue
as follows and Section 1.1 (m) of the Lease shall be deemed
supplemented accordingly:

 

 

	
   

  	
  Term

  	
   

  	
  Annual Rate

  	
   

  	
  Monthly

  Installments

  	
   

  	
  Annual Per Sq. Ft.

  Rate

  	
   

  
	
   

  	
  Commencing on the Expansion Premises Effective Date
  through and including the New Expiration Date

  	
   

  	
  $

  	
  88,053.00

  	
   

  	
  $

  	
  7,337.75

  	
   

  	
  $

  	
  21.00

  	
   

  
												

 

Notwithstanding
the foregoing, provided that this Lease is in full force and effect and Tenant
has complied with each of its obligations hereunder, Tenant shall have no
obligation to pay the Monthly Installments of Minimum Rent applicable to the
Expansion Premises only for the first (1st), thirteenth (13th), and twenty-fifth (25th) full calendar months of the Term applicable to the
Expansion Premises.

 

If
the Expansion Premises Effective Date is a day other than the first day of a
calendar month, the Monthly Installment of Minimum Rent for the month during
which the Expansion Premises Effective Date occurs shall be prorated.

 

e.                                       Tenant’s
Occupancy Percentage applicable to the Expansion Premises shall be 1.86% and Section 1.1
(h) of the Lease shall be deemed supplemented accordingly.

 

f.                                         Tenant shall
pay Landlord, as additional rent, Tenant’s Occupancy Percentage applicable to
the Expansion Premises of the increased cost to Landlord for each of the
categories set forth in Article 6 Taxes; Operating Costs;
Reimbursements of the Lease.

 

g.                                      Base Taxes
applicable to the Expansion Premises shall mean the amount determined by
multiplying (a) the real estate tax rate in effect on January 1, 2009
and (b) the assessed valuation of the Real Estate for the calendar year
ending December 31, 2009, as such assessed valuation is or may be
ultimately determined by final administrative or judicial proceeding, or by
abatement by an appropriate taxing authority and Section 1.1. (i) of
the Lease shall be deemed supplemented accordingly. Assessed valuation shall
mean the valuation of the Real Estate on which Taxes are based.

 

h.                                      First Operating
Year applicable to the Expansion Premises shall mean the calendar year ending December 31,
2009 and First Tax Year applicable to the Expansion Premises shall 

 

 

mean
the calendar year ending December 31, 2009 and Section 1.1 (j) of
the Lease shall be deemed supplemented accordingly.

 

i.                                          Tenant shall
pay the cost of electricity consumed within the Expansion Premises in
accordance with Article 25 of the Lease Electricity.

 

j.                                          The number of
parking spaces as set forth in Section 1.1 (q) of fee Lease shall be
increased to forty-nine (49) spaces of which five (5) shall be Designated
Spaces.

 

3.7                                 The Term applicable to the
Existing Premises shall be extended for a period commencing on January 1,
2010 and expiring at 11:59 p.m. on the New Expiration Date (“Extension
Term”) and Section 1.1 (k) of the Lease shall be deemed amended
accordingly.

 

3.8                                 Landlord shall complete
improvement work to the Existing Premises in accordance with Exhibit B
attached hereto and made part hereof at a mutually agreeable time after the
date of this Agreement.

 

3.9                                 Commencing on January 1,
2010, the following shall be effective:

 

a.                                       The Minimum
Rent applicable to the Existing Premises shall be as follows and Section 1.1
(m) of the Lease shall be deemed supplemented accordingly:

 

	
   

  	
  Term

  	
   

  	
  Annual Rate

  	
   

  	
  Monthly

  Installments

  	
   

  	
  Annual Per Sq. Ft. Rate

  	
   

  
	
   

  	
  Commencing on January 1, 2010 through and
  including the New Expiration Date

  	
   

  	
  $

  	
  259,800.75

  	
   

  	
  $

  	
  21,650.06

  	
   

  	
  $

  	
  24.75

  	
   

  
												

 

Notwithstanding
the foregoing, provided that this Lease is in full force and effect and Tenant
has complied with each of its obligations hereunder, Tenant shall have no
obligation to pay the Monthly Installments of Minimum Rent applicable to the
Existing Premises only for the first (1st) and thirteenth (13th) full calendar months of the Extension Term
applicable to the Existing Premises.

 

b.                                      Tenant shall
pay Landlord, as additional rent, Tenant’s Occupancy Percentage applicable to
the Existing Premises of the increased cost to Landlord for each of the
categories set forth in Article 6 Taxes; Operating Costs;
Reimbursements of the Lease.

 

c.                                       Base Taxes
applicable to the Existing Premises shall mean the amount determined by
multiplying (a) the real estate tax rate in effect on January 1, 2009
and (b) the assessed valuation of the Real Estate for the calendar year
ending December 31, 2009, as such assessed valuation is or may be
ultimately determined by final administrative or judicial proceeding, or by
abatement by an appropriate taxing authority and Section 1.1. (i) of
the Lease shall be deemed supplemented accordingly. Assessed valuation shall
mean the valuation of the Real Estate on which Taxes are based.

 

d.                                      First Operating
Year applicable to the Existing Premises shall mean the calendar year ending December 31,
2009 and First Tax Year applicable to the Existing Premises shall mean the
calendar year ending December 31, 2009 and Section 1.1 (j) of
the Lease shall be deemed supplemented accordingly.

 

e.                                       Tenant shall
continue to pay the cost of electricity consumed within the Existing Premises
in accordance with Article 25 of the Lease Electricity.

 

3.10                           Article 51 (Renewal
Options) and Article 56 (Right of First Offer) shall be deleted in their
entirety.

 

 

3.11                           The following shall be added
as Article 51 to the Lease:

 

OPTION TO RENEW:

 

(a)                                  If the term of this Lease
shall then be in full force and effect and Lessee has complied fully with its
obligations hereunder, Lessee shall have the option to extend the term of this
Lease for a period of five (5) years (the “Renewal Term”) commencing on
the day immediately following the Expiration Date, provided however that Lessee
shall give Lessor notice of its election to extend the term no earlier than
twelve (12) months prior to the New Expiration Date nor later than nine (9) months
prior to the New Expiration Date.  TIME BEING OF THE ESSENCE in connection
with the exercise of Lessee’s option pursuant to this Article.

 

(b)                                 Such extension of the term
of this Lease shall be upon the same covenants and conditions, as herein set
forth except for the Fixed Basic Rent (which shall be determined in the manner
set forth below), and except that Lessee shall have no farther right to extend
the term of this Lease after the exercise of the single option described in
paragraph (a) of this Section.  If
Lessee shall duly give notice of its election to extend the term of this Lease,
the Renewal Term shall be added to and become a part of the Term of this Lease
(but shall not be considered a part of the initial Term), and any reference in
this Lease to the “Term of this Lease”, the “Term hereof”, or any similar
expression shall be deemed to include such Renewal Term, and, in addition, the
term “Expiration Date” shall thereafter mean the last day of such Renewal
Term.  Lessor shall have no obligation to
perform any alteration or preparatory or other work in and to the Premises or
provide a tenant improvement allowance and Lessee shall continue possession
thereof in its “as is” condition.

 

(c)                                  If Lessee exercises its
option for the Renewal Term, the Fixed Basic Rent during the Renewal Term shall
be the fair market rent for the Premises, as hereinafter defined.

 

(d)                                 Lessor and Lessee shall use
their best efforts, within thirty (30) days after Lessor receives Lessee’s
notice of its election to extend the Term of this Lease for the Renewal Term (“Negotiation
Period”), to agree upon the Fixed Basic Rent to be paid by Lessee during the
Renewal Term. If Lessor and Lessee shall agree upon the Fixed Basic Rent for
the Renewal Term, the parties shall promptly execute an amendment to this Lease
stating the Fixed Basic Rent for the Renewal Term.

 

(e)                                  If the parties are unable to
agree on the Fixed Basic Rent for the Renewal Term during the Negotiation
Period, then within fifteen (15) days after notice from the other party, given
after expiration of the Negotiation Period, each parry, at its cost and upon
notice to the other party, shall appoint a person to act as an appraiser
hereunder, to determine the fair market rent for the Premises for the Renewal
Term. Each such person shall be a real estate broker or appraiser with at least
ten years’ active commercial real estate appraisal or brokerage experience
(involving the leasing of office space as agent for both landlords and lessees)
in the County of Morris. If a party does not appoint a person to act as an
appraiser within said fifteen (15) day period, the person appointed by the
other party shall be the sole appraiser and shall determine the aforesaid fair
market rent.  Each notice containing the
name of a person to act as appraiser shall contain also the person’s address.
Before proceeding to establish the fair market rent, the appraisers shall
subscribe and swear to an oath fairly and impartially to determine such rent.

 

If
the two appraisers are appointed by the parties as stated in the immediately
preceding paragraph, they shall meet promptly and attempt to determine the fair
market rent.  If they are unable to agree
within forty-five (45) days after the appointment of the second appraiser, they
shall attempt to select a third person meeting the qualifications stated in the
immediately preceding paragraph within fifteen (15) days after the last day the
two 

 

 

appraisers
are given to determine the fair market rent. 
If they are unable to agree on the third person to act as appraiser
within said fifteen (15) day period, the third person shall be appointed by the
American Arbitration Association (the “Association”), upon the application of
Lessor or Lessee to the office of the Association nearest the Building. The
person appointed to act as appraiser by the Association shall be required to
meet the qualifications stated in the immediately preceding paragraph. Each of
the parties shall bear fifty percent (50%) of the cost of appointing the third
person and of paying the third person’s fees. The third person, however
selected, shall be required to take an oath similar to that described above.

 

The
three appraisers shall meet and determine the fair market rent.  A decision in which two of the three
appraisers concur shall be binding and conclusive upon the parties. In deciding
the dispute, the appraisers shall act in accordance with the rules then in
force of the Association, subject however, to such limitations as may be placed
on them by the provisions of this Lease.

 

Notwithstanding
the foregoing, in no event shall the Fixed Basic Rent during the Renewal Term
be less than the Fixed Basic Rent during the last year of the Term of this
Lease immediately preceding the Renewal Term.

 

(f)                                    After the fair market rent
for the Renewal Term has been determined by the appraiser or appraisers and the
appraiser or appraisers shall have notified the parties, at the request of
either party, both parties shall execute and deliver to each other an amendment
of this Lease stating the Fixed Basic Rent for the Renewal Term.

 

(g)                                 If the Fixed Basic Rent for
the Renewal Term has not been agreed to or established prior to the
commencement of the Renewal Term, then Lessee shall pay to Lessor an annual
rent (“Temporary Rent”) which Temporary Rent shall be equal to the Fixed Basic
Rent payable by Lessee for the last year of the Term immediately preceding the
Renewal Term. Thereafter, if the parties shall agree upon a Fixed Basic Rent,
or the Fixed Basic Rent shall be established upon the determination of the fair
market rent by the appraiser or appraisers, at a rate at variance with the
Temporary Rent (i) if such Fixed Basic Rent is greater than the Temporary
Rent, Lessee shall promptly pay to Lessor the difference between the Fixed
Basic Rent determined by agreement or the appraisal process and the Temporary
Rent, or (ii) if such Fixed Basic Rent is less than the Temporary Rent,
Lessor shall credit to Lessee’s subsequent monthly installments of Fixed Basic
Rent the difference between the Temporary Rent and the Fixed Basic Rent
determined by agreement or the appraisal process.

 

(h)                                 In describing the fair
market rent during the Renewal Term, the appraiser or appraisers shall be
required to take into account the rentals at which leases are then being
concluded (as of the last day of the Term) (for five (5) year leases
without renewal options with the lessor and lessee each acting prudently, with
knowledge and for self-interest, and assuming that neither is under undue
duress) for comparable space in the Building and incomparable office buildings
in the County of Morris.

 

(i)                                     The option granted to Lessee
under this Article 51 may be exercised only by Lessee, its permitted
successors and assigns, and not by any subtenant or any successor to the
interest of Lessee by reason of any action under the Bankruptcy Code, or by any
public officer, custodian, receiver, United States Trustee, trustee or
liquidator of Lessee or substantially all of Lessee’s property. Lessee shall
have no right to exercise this option subsequent to the date Lessor shall have
the right to give the notice of termination referred to in Article 35 of
the Lease unless Lessee cures the default within the applicable grace period.
Notwithstanding the foregoing, Lessee shall have no right to extend the term
if, at the time it gives notice of its election (i) Lessee shall not be in
occupancy of substantially all of the Premises or (ii) the Premises (or
any part thereof) shall be the 

 

 

subject
of a sublease. If Lessee shall have elected to extend the term, such election
shall be (at Lessor’s sole option) deemed withdrawn if, at any time after the giving
of notice of such election and prior to the commencement of the Renewal Term,
Lessee shall sublease (all or any portion of) the Premises or assign Lessee’s
interest in this Lease.

 

3.12                           No later than thirty (30)
days after the determination of the Expansion Premises Effective Date, the
parties shall agree to memorialize the Expansion Premises Effective Date in
writing.

 

3.13                           Tenant represents and
warrants to Landlord that no broker brought about this transaction, and Tenant
agrees to indemnify and hold Landlord harmless from any and all claims of any
broker arising out of or in connection with negotiations of, or entering into
of, this Agreement.

 

3.14                           Tenant agrees not to
disclose the terms, covenants, conditions or other facts with respect to this Agreement,
including the Minimum Rent and Additional Rent, to any person, corporation,
partnership, association, newspaper, periodical or other entity, except to
Tenant’s accountants or attorneys (who shall also be required to keep the terms
of this Agreement confidential) or as required by law. This non-disclosure and
confidentiality agreement will be binding upon Tenant without limitation as to
time, and a breach of this paragraph will constitute a material breach under
this Agreement and the Lease.

 

3.15                           Tenant hereby represents to
Landlord that (i) there exists no default under the Lease either by
Landlord or Tenant; (ii) Tenant is entitled to no credit, free rent or
other offset or abatement of the rents due under the Lease; and (iii) there
exists no offset, defense or counterclaim to Tenant’s obligation under the
Lease.

 

3.16                           Except as expressly amended
herein, the Lease dated July 14, 2004, as amended herein, shall remain in
full force and effect as if the same had been set forth in full herein, and Landlord
and Tenant hereby ratify and confirm all of the terms and conditions thereof.

 

3.17                           This agreement shall be
binding upon and inure to the benefit of the parties hereto and their
respective legal representatives, successors and permitted assigns.

 

3.18                           Each party agrees that it
will not raise or assert as a defense to any obligation under the Lease or this
Agreement or make any claim that the Lease or this Agreement is invalid or
unenforceable due to any failure of this document to comply with ministerial
requirements including, but not limited to, requirements for corporate seals,
attestations, witnesses, notarizations, or other similar requirements, and each
parry hereby waives the right to assert any such defense or make any claim of
invalidity or unenforceability due to any of the foregoing.

 

[Signature Page Follows]

 

 

IN
WITNESS WHEREOF, Landlord and Tenant have hereunto set their hands and seals
the date and year first above written, and acknowledge one to the other that
they possess the requisite authority to enter into this transaction and to sign
this Agreement.

 

LANDLORD:

 

20
WATERVIEW SPE LLC

 

By:          Gale SLG NJ Mezz LLC, sole
member

By:          Gale SLG NY Operating
Partnership, sole member

By:          Gale SLG NY GP LLC, general
partner

By:          Mack-Green-Gale LLC, sole
member

By:          Mack-Cali Ventures L.L.C., managing member

By:          Mack-Cali Realty, L.P., sole
member

By:          Mack-Cali Realty Corporation, its general partner

 

 

	
  By:

  	
  /s/
  Michael A. Grossman

  
	
   

  	
  Michael
  A. Grossman

  
	
   

  	
  Executive
  Vice President

  

 

	
  TENANT:

  	
   

  
	
   

  	
   

  
	
  TANGOE, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Gary R. Martino

  	
   

  
	
   

  	
  Name:

  	
  Gary
  R. Martino

  	
   

  
	
   

  	
  Title:

  	
  CFO

  	
   

  

 

 

 

 

EXHIBIT B

 

LANDLORD’S WORK

 

NOTES

 

RE:          Workletter Agreement for office space on the third
(3rd) floor at 20
Waterview Boulevard, Parsippany, New Jersey.

 

, 2008

 

TENANT:

 

TANGOE.
INC.

 

You
(“Tenant”) and we (“Landlord”) are executing simultaneously with this
Workletter Agreement a written lease amendment (“Amendment”), covering the
space referred to above, as more particularly described in the Amendment (“Existing
Premises and Expansion Premises”),

 

To
induce Tenant to enter into the Lease (which is hereby incorporated by
reference) and in consideration of the covenants hereinafter contained,
Landlord and Tenant mutually agree as follows:

 

1.             Landlord shall have its architect
prepare the following architectural and mechanical drawings and specifications
based upon the sketch layout supplied to Landlord by Tenant, attached hereto
and made a part hereof, upon full execution of this Lease.

 

a.             Architectural
drawings and specifications for Tenant’s partition layout, reflected ceiling,
placement of electrical outlets and other installations for the work to be done
by Landlord.

 

b.             Mechanical
plans and specifications where necessary for installation of air conditioning
systems, ductwork and heating.

 

All
such plans and specifications are expressly subject to Landlord’s written
approval, which Landlord covenants it will not unreasonably withhold.

 

2.             Landlord agrees to cause the
partition plan, electrical plan and the reflected ceiling plan to be delivered
to Tenant on or before the fifteenth (15th) day after Tenant’s approved sketch
layout. Tenant agrees to approve said plans by initiating and returning same to
Landlord within three (3) days of receipt of each plan. Upon approval of
the plans initialed by Tenant, Landlord shall file said plans with the
appropriate governmental agencies.

 

3.             Landlord
agrees, at its expense and without charge to Tenant (unless otherwise
provided), to do the work in the Existing Premises and Expansion Premises as
shown on the plans attached hereto and described on the “Description of
Materials” schedule attached hereto which shall hereinafter be referred to as “The
Work”. The Work shall include Landlord’s general conditions and overhead
amounts indicated on the Description of Materials. “Building Standard” shall
mean the type and grade of material, equipment and/or device designated by
Landlord as standard for the Building. All items are Building Standard unless
otherwise noted. The provisions of Article 13 of the Lease shall apply to
any alterations made to the Existing Premises and Expansion Premises after the
initial work to be performed herein. The Work shall include four (4) additional
110 V 30A circuits in the computer room in the Existing Premises, the cleaning,
waxing or replacing, where necessary, of the existing linoleum tile floor, a
Greenfield Conduit will be installed per Tenant’s specification in order to
allow Tenant to run communication cables to the cubicles, installation of
outlets in new cubicles, combination door entry to entry door of Expansion
Premises, removal of Plywood from the closet in the Expansion Premises, and
removal of the demising wall in the Existing Premises and 

 

 

the
storage room. The carpet, ceiling tiles and lighting shall match those existing
in the Existing Premises. Tenant shall approve soffit design.

 

4.             Intentionally omitted.

 

5.             All low partitioning,
workstation modules, bank screen partitions and prefabricated partition systems
shall be furnished and installed by Tenant.

 

6.             The installation or wiring
of telephone and computer (data) outlets is not part of The Work. Tenant shall
bear the responsibility to provide its own telephone and data systems at Tenant’s
sole cost and expense. Upon expiration or sooner termination of the Lease,
Tenant shall remove all telephone and data equipment and wiring from the
Existing Premises and Expansion Premises and the Building risers upon vacation
of same.

 

7.             Changes in The Work, if
necessary or requested by the Tenant, shall be accomplished after submission of
Tenant’s final approved sketch layout, and without invalidating any part of the
Lease or Workletter Agreement, by written agreement between Landlord and Tenant
hereinafter referred to as a Change Order. Each Change Order shall be prepared
by Landlord and signed by both Tenant and Landlord stating their agreement upon
all of the following:

 

a.             The scope of
the change in The Work; and

 

b.             The cost o f
the change; and

 

c.             Manner in which
the cost will be paid or credited; and

 

d.             The estimated
extent of any adjustment to the Expansion Premises Effective Date (if any) as a
result of the change in The Work.

 

Each
and every Change Order shall be signed by Landlord’s and Tenant’s respective
construction representatives. In no event shall any
Change Order(s) be permitted without such authorizations. A 10%
supervision plus 10% overhead charge will be added to the cost of any Change
Order and to the cost of any other work to be performed by Landlord in the
Existing Premises and Expansion Premises after Landlord’s completion of The
Work. If Tenant shall fail to approve any such Change Order within one (1) week,
the same shall be deemed disapproved in all respects by Tenant and Landlord
shall not be authorized to proceed thereon. Any increase in the cost of The
Work or the change in The Work stated in a Change Order which results from
Tenant’s failure to timely approve and return said Change Order shall be paid
by the Tenant. Tenant agrees to pay to Landlord the cost of any Change Order
promptly upon receipt of an invoice for same.

 

8.             If Tenant elects to use the
architect suggested by Landlord, this architect becomes the Tenant’s agent
solely with respect to the plans, specifications and The Work. If any change is
made after completion of schematic drawings and prior to completion of final
construction documents which result in a Change Order and additional costs,
such costs shall be the responsibility of the Tenant.

 

9.             Prior to Tenant’s occupancy
of the Expansion Premises, Tenant shall identify and list any portion of The
Work which does not conform to this Workletter Agreement (“Punch List”). The
Landlord shall review with the Tenant all of the items so listed and correct or
complete any portion of The Work which fails to conform to the requirements of
this Workletter Agreement.

 

10.           The terms contained in the
Amendment (which include all exhibits attached thereto) constitute Landlord’s
agreement with Tenant with respect to the work to be performed by Landlord on
Tenant’s behalf. If the architectural drawings are in conflict with the terms
of the Amendment, then the Lease shall be deemed the controlling document.

 

 

11.           All materials and
installations constructed for the Tenant within the Existing Premises and
Expansion Premises shall become the property of the Landlord upon installation.
No refund, credit or removal of said items is to be permitted at the
termination of the Lease. Items installed that are not integrated in any such
way with other common building materials do not fall under this provision (e.g.
shelving, furniture, etc.).

 

12.           It is agreed that
notwithstanding the date provided in the Lease for the Expansion Premises
Effective Date, the term applicable to the Expansion Premises shall not
commence until Landlord has “substantially completed” all work to be performed
by Landlord in the Expansion Premises as hereinbefore set forth in Paragraph 3
above and as set forth in the Amendment; provided, however, that if Landlord
shall be delayed in substantially completing said work as a result of:

 

a.             Tenant’s
failure to approve the plans and specifications in accordance with Paragraph 2
hereof; or

 

b.             Tenant’s
failure to furnish interior finish specifications, i.e., paint colors, carpet
selection, etc., to Landlord by the fifth (5th) working day after Landlord has
approved the plans and specifications submitted by Tenant referred to in
Paragraph 2 hereof; or

 

c.             Tenant’s
request for materials, finishes or installations other than Landlord’s Building
Standard; or

 

d.             Tenant’s
changes in The Work; or

 

e.             The performance
of a person, firm, partnership or corporation employed by Tenant and the
completion of the said work by said person, firm, partnership or corporation;

 

then
the Expansion Premises Effective Date of the term of said Lease shall be
accelerated by the number of days of such delay and Tenant’s obligation to pay
Minimum Rent and Additional Rent shall commence as of such earlier date.

 

13.           Landlord shall permit Tenant and its agents to enter
the Expansion Premises prior to the Expansion Premises Effective Date in order
that Tenant may perform through its own non-union contractors (or union
contractor if required by Landlord) such other work and decorations as Tenant
may desire at the same time Landlord’s contractors are working in the Existing
Premises and Expansion Premises. The foregoing license to enter prior to the
Expansion Premises Effective Date, however, is conditioned upon:

 

a.             Tenant’s
workmen and mechanics working in harmony and not interfering with the labor
employed by Landlord, Landlord’s mechanics or contractors or by any other
Tenant or its mechanics or contractors; and

 

b.             Tenant
providing Landlord with evidence of Tenant’s contractors and subcontractors
carrying such worker’s compensation, general liability, personal and property
insurance as required by law and in amounts no less than the amounts set forth
in Article 30 of the Lease.  If at
any time such entry shall cause disharmony or interference therewith, this
license may be withdrawn by Landlord upon forty-eight (48) hours written notice
to Tenant. Such entry shall be deemed controlled by all of the terms,
covenants, provisions and conditions of said Lease, except as to the covenant
to pay Minimum Rent and Additional Rent. Landlord shall not be liable in any way
for any injury, loss or damage which may occur to any of Tenant’s decorations
or installations so made prior to the Expansion Premises Effective Date, the
same being solely at Tenant’s risk.

 

14.           No part of the Existing
Premises and Expansion Premises shall be deemed unavailable for occupancy by
the tenant, or shall any work which the Landlord is obligated to perform in
such part of the Existing Premises and Expansion Premises be deemed incomplete
for the purpose of any adjustment of Minimum Rent payable hereunder, solely due
to the non-completion of details of construction, decoration or mechanical
adjustments which are minor in character and the non-completion of which does
not materially interfere with the Tenant’s use of such part of the Existing Premises
and Expansion Premises.

 

 

15.                                 Tenant is responsible for
all costs related to the repairs and maintenance of any additional or
supplemental HVAC systems, appliances and equipment installed to meet Tenant’s
specific requirements.  Tenant shall
purchase a service contract for this equipment so that the equipment is covered
by such service contract each year of the term of the Lease and shall forward a
copy of such contract to Landlord.

 

16.                                 If construction
is to occur in a space occupied by Tenant’s employees, Tenant shall be liable for
all costs associated with a delay if Tenant shall fail to comply with a
submitted construction schedule to relocate personnel, furniture, or equipment.
Tenant shall relocate such personnel, furniture and equipment at its sole cost
and expense. These costs shall include, but not be limited to the following:

 

a.                                       cost of
construction workers time wasted; and

 

b.                                      cost of any
overtime work necessary to meet schedule deadlines; and

 

c.                                       any other costs
associated with delays in final completion.

 

17.                                 This workletter is based on the quantities and specifications
listed herein. Any change to these specifications shall require the
recalculation of the construction costs. 
Such recalculation shall not negate any other section of this Lease.

 

18.                                 All sums
payable by Tenant to Landlord in connection with this Exhibit B and any
other work to be performed by Landlord within the Existing Premises and
Expansion Premises and billable to Tenant shall be deemed Additional Rent.

 

19.                                 With respect to
the construction work being conducted in or about the Existing Premises and
Expansion Premises, each party agrees to be bound by the approval and actions
of their respective construction representatives. Unless changed by written
notification, the parties hereby designate the following individuals as their
respective construction representatives:

 

FOR LANDLORD:                                                               FOR
TENANT:

 

 

c/o Mack-Cali Realty
Corporation                                     

 

 

 

 

12/23/08

 

EXHIBIT B

 

LANDLORD’S WORK

 

Tenant
Improvements for office space consisting of 10,497 RSF
on the third (3rd) floor at 20 Waterview Boulevard,
Parsippany, NJ between 20 Waterview  SPE LLC, as Landlord and Tangoe, Inc.,
as Tenant

 

DESCRIPTION OF MATERIALS

 

	
   

  	
   

  	
  Units

  	
   

  	
  Quantity

  	
   

  
	
  DESIGN COSTS – 5502

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Architect

  	
   

  	
  SF

  	
   

  	
   

  	
   

  
	
  Printing
  Costs

  	
   

  	
  EA

  	
   

  	
  150

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Units

  	
   

  	
  Quantity

  	
   

  
	
  GENERAL REQUIREMENTS - 5510

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dumpsters

  	
   

  	
  EA

  	
   

  	
  2

  	
   

  
	
  Permits, inspections, and Certificate of Occupancy

  	
   

  	
  SF

  	
   

  	
  4,193

  	
   

  
	
  Supervision

  	
   

  	
  SF

  	
   

  	
  14,690

  	
   

  
	
  Cutting
  and Patching

  	
   

  	
  SF

  	
   

  	
  4,193

  	
   

  
	
  Misc Tools and
  Equipment

  	
   

  	
  SF

  	
   

  	
  4,193

  	
   

  
	
  Temp.
  Services and Protection

  	
   

  	
  SF

  	
   

  	
  4,193

  	
   

  
	
  Construction
  Clean up

  	
   

  	
  SF

  	
   

  	
  4,193

  	
   

  
	
  Final
  Clean up, windows, floors

  	
   

  	
  SF

  	
   

  	
  14,690

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Units

  	
   

  	
  Quantity

  	
   

  
	
  DEMOLITION- 5505

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Remove
  Carpet

  	
   

  	
  SF

  	
   

  	
  3200

  	
   

  
	
  Remove
  Partitions

  	
   

  	
  LF

  	
   

  	
  90

  	
   

  
	
  Remove
  Ceiling Tile Only

  	
   

  	
  SF

  	
   

  	
  3200

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Units

  	
   

  	
  Quantity

  	
   

  
	
  CABINETS & MILL WORK -
  5561

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Closet
  Shelf and Rod

  	
   

  	
  LF

  	
   

  	
  5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Units

  	
   

  	
  Quantity

  	
   

  
	
  DOORS, BUCKS, HARDWARE - 5540

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Interior
  doors 3’0” x 7’0”_x1 3/4” SC stain grade

  	
   

  	
  EA

  	
   

  	
  3

  	
   

  
	
  *         HMB

  	
   

  	
  EA

  	
   

  	
  3

  	
   

  
	
  *         Doorstops

  	
   

  	
  EA

  	
   

  	
  1

  	
   

  
	
  *         Coat
  hook

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Units

  	
   

  	
  Quantity

  	
   

  
	
  PARTITIONS - 5530

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  *         2
  1/2” metal studs 24” OC; 5/8” gypsum board to U/S Ceiling (with SAB)

  	
   

  	
  LF

  	
   

  	
  3

  	
   

  
	
  *         2
  1/2” metal studs 24” OC; 5/8” gypsum board to 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  U/S
  Ceiling (w/No SAB)

  	
   

  	
  LF

  	
   

  	
  20

  	
   

  
	
  *         Finish
  on Mullions

  	
   

  	
  EA

  	
   

  	
  1

  	
   

  
	
  *         Soffit at demising partition to tie ceilings in

  	
   

  	
  LF

  	
   

  	
  90

  	
   

  
	
  *         Scar
  Patch

  	
   

  	
  MH

  	
   

  	
  16

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Units

  	
   

  	
  Quantity

  	
   

  
	
  ACOUSTICAL CEILINGS - 5542

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  *         Patch
  grid at deck high partitions

  	
   

  	
  LF

  	
   

  	
  90

  	
   

  
	
  *         Replace
  Second look II tile only

  	
   

  	
  SF

  	
   

  	
  3200

  	
   

  
	
  *         Add
  sound attenuation blankets above ceilings

  	
   

  	
  SF

  	
   

  	
  120

  	
   

  

 

Workletter Agreement

 

 

	
   

  	
   

  	
  Units

  	
   

  	
  Quantity

  	
   

  
	
  PAINTING A VINYL WALL COVERING
  5565

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  *         Paint
  - 2 coats flat latex

  	
   

  	
  SF

  	
   

  	
  10000

  	
   

  
	
  *         Repaint
  doors

  	
   

  	
  EA

  	
   

  	
  25

  	
   

  
	
  *         Stain
  or paint new doors

  	
   

  	
  EA

  	
   

  	
  3

  	
   

  
	
  *         Paint
  hollow metal frames

  	
   

  	
  EA

  	
   

  	
  24

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Units

  	
   

  	
  Quantity

  	
   

  
	
  FLOORING & CARPET -
  5564

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  *         Floor
  preparation

  	
   

  	
  SF

  	
   

  	
  3200

  	
   

  
	
  *         Vinyl
  cove base

  	
   

  	
  LF

  	
   

  	
  420

  	
   

  
	
  *         Vinyl
  composition tile

  	
   

  	
  SF

  	
   

  	
  800

  	
   

  
	
  *         Carpet
  to be building standard $15.00 allowance per yard, including a 10% waste
  factor

  	
   

  	
  SY

  	
   

  	
  300

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Units

  	
   

  	
  Quantity

  	
   

  
	
  FIRE SUPPRESSION SYSTEM - 5574

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Plans &
  Permits

  	
   

  	
  EA

  	
   

  	
  1

  	
   

  
	
  *         Relocate
  existing heads

  	
   

  	
  EA

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Units

  	
   

  	
  Quantity

  	
   

  
	
  HVAC - 5535

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  *         Bldg
  Std HVAC distribution system

  	
   

  	
  SF

  	
   

  	
  14,690

  	
   

  
	
  *         Balance
  report

  	
   

  	
  SF

  	
   

  	
  14,690

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Units

  	
   

  	
  Quantity

  	
   

  
	
  ELECTRICAL - 5533

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DEMOLITION

  	
   

  	
  SF

  	
   

  	
  14,690

  	
   

  
	
  *         Electrical
  Demolition

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SWITCHES

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  *         Install
  single pole switch

  	
   

  	
  EA

  	
   

  	
  4

  	
   

  
	
  EXIT
  AND EMERGENCY LIGHTS

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  *         Install
  new exit light

  	
   

  	
  EA

  	
   

  	
  4

  	
   

  
	
  Install
  new “Low” exit light

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  *         Install
  new emergency light

  	
   

  	
  EA

  	
   

  	
  4

  	
   

  
	
  CIRCUITS
  and RECEPTACLES

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  *         Install
  wall duplex receptacle

  	
   

  	
  EA

  	
   

  	
  5

  	
   

  
	
  MISCELLANEOUS

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rewire
  electrical service

  	
   

  	
  EA

  	
   

  	
  1

  	
   

  
	
  *         Install
  power feed for modular partition

  	
   

  	
  EA

  	
   

  	
  4

  	
   

  
	
  *         Power
  Requirements for HVAC systems

  	
   

  	
  SF

  	
   

  	
  14,690

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Units

  	
   

  	
  Quantity

  	
   

  
	
  ALARM-
  5572

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Install new Horn/Strobe

  	
   

  	
  EA

  	
   

  	
  3

  	
   

  

 

	
  ASSUMPTIONS AND CLARIFICATIONS:

  
	
  *         Asterisk
  (*) indicates Building Standard items.

  
	
  +         Cross
  (+) indicates non-Building Standard items.

  
	
  The
  following work b included:

  
	
  Communications
  Work, Tele/Data

  
	
  Security
  and Access Systems

  
	
  Office
  furniture, Equipment, and Appliances

  
	
  Modular
  Partitions and Work stations

  
	
  Overtime
  except for work in adjacent tenant spaces or public areas of the building

  
	
  Dishwashers
  are not allowed

  
	
  Undercounter ice makers
  are not allowed

  
	
  Existing
  window blinds to be cleaned and repaired as required

  
	
  Existing
  space to be demolished as required

  
	
  Estimate
  based on drawing SK-3 dated 11/3/08 prepared by Mack-Cali Realty 

  

 

 

	
  Corp

  
	
  Millwork
  limited to new coat closet rod and shelf

  
	
  New
  doors to be 7” high solid core stain grade birch in knock down hollow metal
  frames

  
	
  Finish
  hardware to be ADA compliant building standard cylindrical

  
	
  Partition
  at executive office to be ceiling high with sound insulation

  
	
  All
  other new partitions to be ceiling high without sound insulation

  
	
  Soffit to be
  constructed where demising partition removed to tie ceilings together

  
	
  Existing
  ceiling tile to be removed and replaced with new to match the existing space

  
	
  All
  wall surfaces to be painted. Vinyl wall covering is not included

  
	
  Doors
  and frames to be finished to match the existing

  
	
  Storage
  rooms receive vinyl composition tile and vinyl cove base 

  
	
  Remainder
  of the space receive building standard loop pile carpet and vinyl cove base

  
	
  Fire
  sprinkler heads to be relocated as needed for new layout and ceiling tile
  replacement

  
	
  No
  new plumbing work is included

  
	
  Building
  HVAC system to be modified as needed for new tenant layout

  
	
  No
  special or supplemental HVAC system is included

  
	
  New
  electrical work limited to

  
	
  New
  executive office

  
	
  New
  storage rooms

  
	
  Modular
  partitions where demising partition is removed

  
	
  Exit
  and emergency lights to be installed as per code requirements

  
	
  Fire
  alarm devices to be installed as per code requirementsExhibit 10.28

 

LEASE

 

 

Between

 

 

205-215 LEXINGTON AVENUE ASSOCIATES LLC,

 

 

as Landlord,

 

 

and

 

 

TANGOE, INC.,

 

as Tenant.

 

 

Premises: A portion of the TENTH (10th) Floor, known as Suite 1000,

at

205 Lexington Avenue 

New York, New York

 

Date: September 21st, 2009

 

 

INDEX
TO LEASE

	
  SECTION

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Premises, Term, Rent, Definitions

  	
   

  	
  1

  
	
  2.

  	
  Use

  	
   

  	
  3

  
	
  3.

  	
  Condition of the Demised Premises: AS IS Condition

  	
   

  	
  7

  
	
  4.

  	
  When Demised Premises Ready for Occupancy

  	
   

  	
  8

  
	
  5.

  	
  Adjustments of Rents

  	
   

  	
  8

  
	
  6.

  	
  Intentionally Left Blank

  	
   

  	
  11

  
	
  7.

  	
  Subordination, Notice to Lessors and Mortgagees

  	
   

  	
  11

  
	
  8.

  	
  Quiet Enjoyment

  	
   

  	
  14

  
	
  9.

  	
  Brokerage

  	
   

  	
  14

  
	
  10.

  	
  Compliance with Laws

  	
   

  	
  14

  
	
  11.

  	
  Insurance and Indemnity

  	
   

  	
  15

  
	
  12.

  	
  Rules and Regulations

  	
   

  	
  19

  
	
  13.

  	
  Tenant’s Changes

  	
   

  	
  19

  
	
  14.

  	
  Tenant’s Property

  	
   

  	
  22

  
	
  15.

  	
  Repairs and Maintenance

  	
   

  	
  23

  
	
  16.

  	
  Electricity

  	
   

  	
  25

  
	
  17.

  	
  Heat, Ventilation and Air-Conditioning

  	
   

  	
  26

  
	
  18.

  	
  Landlord’s Other Services

  	
   

  	
  27

  
	
  19.

  	
  Access, Changes in Building Facilities, Name

  	
   

  	
  29

  
	
  20.

  	
  Notice of Accidents

  	
   

  	
  31

  
	
  21.

  	
  Non-Liability of Landlord in Certain Circumstances, Exculpation

  	
   

  	
  31

  
	
  22.

  	
  Destruction or Damage

  	
   

  	
  32

  
	
  23.

  	
  Condemnation

  	
   

  	
  34

  
	
  24.

  	
  Surrender

  	
   

  	
  35

  
	
  25.

  	
  Conditions of Limitation

  	
   

  	
  36

  
	
  26.

  	
  Re-entry by Landlord

  	
   

  	
  38

  
	
  27.

  	
  Damages

  	
   

  	
  39

  
	
  28.

  	
  Waivers

  	
   

  	
  41

  

 

 

	
  29.

  	
  No Other Waivers or Modifications

  	
   

  	
  42

  
	
  30.

  	
  Curing Tenant’s Defaults, Additional Rent

  	
   

  	
  42

  
	
  31.

  	
  Parties Bound

  	
   

  	
  43

  
	
  32.

  	
  Notices

  	
   

  	
  43

  
	
  33.

  	
  Estoppel Certificate, Memorandum

  	
   

  	
  44

  
	
  34.

  	
  Directory Listings

  	
   

  	
  45

  
	
  35.

  	
  No Other Representations, Construction, Governing Law

  	
   

  	
  45

  
	
  36.

  	
  Assignment, Mortgaging, Subletting, Etc.

  	
   

  	
  46

  
	
  37.

  	
  Security Deposit

  	
   

  	
  52

  
	
  38.

  	
  Change of Location

  	
   

  	
  54

  
	
  39.

  	
  Late Charges

  	
   

  	
  55

  
	
  40.

  	
  Miscellaneous

  	
   

  	
  55

  
	
  41.

  	
  Right of First Offer

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signatures

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Acknowledgment

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
   

  	
  A-1

  
	
  EXHIBIT B

  	
   

  	
  B-1

  
	
  EXHIBIT C

  	
   

  	
  C-1

  
	
  EXHIBIT D

  	
   

  	
  D-1

  
	
  EXHIBIT E

  	
   

  	
  E-1

  
	
  EXHIBIT
  F

  	
   

  	
  F-1

  

 

 

LEASE, dated as of September        ,
2009, between 205-215 LEXINGTON AVENUE
ASSOCIATES LLC, a New York limited liability company having an
office at c/o Somerset Management Ltd., 205 Lexington Avenue, New York, New
York 10016 (hereinafter called “Landlord”), and TANGOE, INC., a Delaware corporation, having an office at 205
Lexington Avenue, New York, New York 10016 (hereinafter called “Tenant”):

 

W I T N E S S E T H:

 

1.                                      Premises,
Term, Rent, Definitions.

 

1.01         Landlord
hereby leases to Tenant, and Tenant hereby rents from Landlord, the premises
hereinafter described, in the building known as 205 Lexington Avenue, New York,
New York 10016 (hereinafter called the “Building”) for the term
hereinafter stated, for the rents hereinafter reserved and upon and subject to
the conditions (including limitations, restrictions and reservations) and
covenants hereinafter provided.  The plot
of land on which the Building is erected is hereinafter called the “Land.”  The Building and the Land are collectively
referred to herein as the “Real Property.” 
Each party hereto hereby expressly covenants and agrees to observe and
perform all of the conditions and covenants herein contained on its part to be
observed and performed.  The obligations
of Tenant, if comprised of more than one person or entity or both, shall be
joint and several.

 

1.02         The
premises hereby leased to Tenant are a portion of the tenth (10th) floor of the Building
consisting of 5,707 rentable square feet as approximately shown on the floor
plan set forth in Exhibit A and known as suite No. 1000.  Said premises together with all fixtures and
equipment that at the commencement, or during the term, of this Lease are
thereto attached (except items not deemed to be included therein and removable
by Tenant as provided in Article 14) constitute and are hereinafter called the “Demised Premises.”

 

1.03         The
term of this Lease (“Term”), for which the Demised Premises are hereby
leased, shall commence on September 21st, 2009, (such date of commencement hereinafter
called the “Commencement Date”) and shall continue through and until September 20th, 2014, for a Term of five (5) years
from the Commencement Date, unless canceled or terminated pursuant to any of
the conditions or covenants of this Lease or pursuant to law.  The date upon which this Lease shall end is
sometimes hereinafter called the “Expiration Date.” 
Landlord and Tenant shall enter into a supplementary agreement in
recordable form reflecting the Commencement Date.  The failure to execute such supplementary
agreement shall not impair any party of its rights and obligations pursuant to
this Lease.

 

In the event that the Tenant
executes and delivers the Lease, as agreed to by the parties, to Landlord prior
to September 18th, 2009 and the
Landlord thereafter fails to execute the Lease and provide a copy to Tenant
along with the delivery of possession of

 

1

 

and the keys to the Demised
Premises on or before September 21st, 2009, the Rent (as hereinafter defined) shall
abate from the Commencement Date as follows:

 

(a)           If
the Commencement Date occurs on or before October 21st, 2009, for the period from September 21st, 2009 until October 20th, 2009 at the rate of one (1) day’s
Rent for each day or portion thereof until the Commencement Date; and, if
applicable,

 

(b)           for
the period from October 21st, 2009 until the Commencement Date, at the rate of
two (2) day’s Rent for each day or portion thereof until the Commencement
Date.

 

Notwithstanding the above,
in the event that the Commencement Date does not occur until on or after November 21st, 2009, the Tenant reserves
the right within thirty (30) days thereafter to provide Landlord with a notice
of termination of this Lease to be effective no later than thirty (30) days
after Landlord’s receipt of such notice of termination.  Landlord shall promptly release and return
the Security Deposit to Tenant.

 

This Agreement may be signed
in counterpart or duplicate copies or via facsimile or e-mail transmission, and
any signed counterpart or duplicate copy or executed facsimile or e-mail copy
hereof shall be equivalent to a signed original for all purposes.  The parties acknowledge that, although each
party shall endeavor to provide to the other signed original counterparts of
this Agreement, any failure to deliver such originals shall not affect the
enforceability of fully-executed facsimile counterparts hereof.

 

1.04         The
rents reserved under this Lease, for the term thereof, shall be and consist of:

 

(a)           Fixed
Rent as set forth in Exhibit E attached hereto and made part hereof in the
column entitled “Fixed Rent,” together with electric charges (collectively “Monthly Rent”)
and any additional rent (as defined below) which sum shall be due and payable
in equal monthly installments (prorated for any partial month) in advance on
the first day of each and every calendar month during the Term of this
Lease.  The first monthly installment of
Fixed Rent, prorated from the Commencement Date, is being paid upon the
execution of this Lease and Landlord acknowledges receipt of a check subject to
collection in the amount of Five Thousand Three Hundred Eighty-Nine and 90/100
($5,389.90) Dollars in payment thereof.

 

(b)           In
addition, Tenant shall pay, during the entire term of this Lease, additional
rent consisting of all other sums of money as shall become due from and payable
by Tenant to Landlord hereunder (for default in the payment of which Landlord
shall have the same remedies as for a default in the payment of Fixed Rent).

 

1.05         (a)           All Fixed Rent and additional rent
(which includes electricity charges) (collectively referred to herein as “Rent”)
shall be paid to Landlord at its office, or such other place, or to such agent
and at such place, as Landlord may designate by written notice to Tenant, in
lawful money of the United States of America. 
Such payment of rent

 

2

 

shall be in cash or by check
(drawn upon a bank whose principal office is located within the continental
United States of America) subject to collection, or by wire transfer without
demand or notice, deduction, set-off, abatement or reduction of any kind,
except as expressly set forth in this Lease.

 

(b)           If
Landlord receives from Tenant any payment less than the sum of the Fixed Rent
and additional rent then due and owing pursuant to this Lease, Tenant hereby
waives its right, if any, to designate the items to which such payment shall be
applied and agrees that Landlord in its sole discretion may apply such payment
in whole or in part to any Fixed Rent, additional rent or to any combination
thereof then due and payable hereunder.

 

(c)           Unless
Landlord shall otherwise expressly agree in writing, acceptance of any portion
of the Rent from anyone other than Tenant shall not relieve Tenant of any of
its other obligations under this Lease, including the obligation to pay other
Rent, and Landlord shall have the right at any time, upon notice to Tenant, to
require Tenant to pay the Rent payable hereunder directly to Landlord.  Furthermore, such acceptance of Rent shall
not be deemed to constitute Landlord’s consent to an assignment of this Lease
or a subletting or other occupancy of the Demised Premises by anyone other than
Tenant, nor a waiver of any of Landlord’s right or Tenant’s obligations under
this Lease.

 

(d)           Landlord’s
failure to bill on a timely basis all or any portion of any amount payable
pursuant to this Lease for any period during the term hereof shall, neither
constitute a waiver of Landlord’s right to collect ultimately such amount or to
bill Tenant at any subsequent time retroactively for the entire amount so
unbilled, which previously unbilled amount shall be payable within thirty (30)
business days after being so billed.

 

1.06         Notwithstanding
anything to the contrary, but provided that Tenant is not in monetary default
(after applicable notice and cure periods) under any of the terms, covenants,
and conditions in this Lease on Tenant’s part to observe, perform or comply
with, Tenant shall not be obligated to pay the Fixed Rent payable under this
Lease for the following months: November 2009, December 2009, October 2010
and November 2010, of the Lease Term, for a rent credit in the aggregate
amount of Sixty Five Thousand Three Hundred Twenty Six and 12/100 ($65,326.12)
Dollars (the “Free Rent”).

 

1.07         The
phrases and terms defined in Exhibit F are incorporated by reference herein,
including all capitalized terms not defined in the body of this Lease.

 

2.                                      Use.

 

2.01         (a)           The Demised
Premises shall be used for first class executive, administrative and general
offices and for no other purpose whatsoever.

 

(b)           Except as
herein specifically permitted, Tenant shall not use, generate, manufacture,
store or dispose of any Hazardous Substance on, under or about the

 

3

 

Demised Premises or the
Building nor transport any Hazardous Substance thereto (except chemicals
customarily used in ordinary cleaning activities in a building comparable to
the Building and incidental to the operation of ordinary business machines such
as photocopiers).  Tenant shall maintain
records of all Hazardous Substances situated on, under or about the Demised
Premises and the disposal or transportation of the same so as to comply with
all Environmental Laws and shall, as prescribed by law, make all reports to all
appropriate Governmental Authorities respecting such transportation, disposal,
storage or release of any such Hazardous Substance.  Notwithstanding the preceding provisions of
this paragraph (b), Tenant shall immediately advise Landlord, in writing, of
any and all enforcement, clean-up, remediation, removal or other governmental
or regulatory actions instituted, completed or threatened pursuant to any
applicable Environmental Laws relating to any Hazardous Substances affecting
the Premises; all claims, made or threatened by any person (including a
Governmental Authority) against the Demised Premises, Tenant or Landlord
relating to any damage, injury, costs, remedial action or cost recovery
compensation arising out of or due to the existence of any such Hazardous
Substance in or about the Demised Premises.

 

(c)           Tenant
shall remove all Hazardous Substances which it introduced or disposed of (or on
behalf of Tenant were introduced or disposed of) into or within the Demised
Premises from the Demised Premises upon the expiration or earlier termination
of the Term.

 

(d)           Tenant
shall defend, indemnify and hold the Indemnities harmless from and against all
actions, causes of action, claims, lawsuits, administrative proceedings,
hearings, judgments, awards, fines, penalties, costs (including legal,
engineers’, experts’, investigatory and consulting fees), damages, remediation
activities and clean-up costs, liens, 
and all other liabilities incurred by any of Landlord,  its officers, 
directors, shareholders, employees and agents, whenever incurred on or
after the Commencement Date, arising out of any Tenant’s act or failure to act
resulting in (i) the existence or presence (or alleged existence or
presence) on or about the Building of any Hazardous Substance or the release of
any Hazardous Substance into the environment; (ii) the occurrence or
existence on or about the Building of any Hazardous Activity or Hazardous
Condition; (iii) any personal injury or property damage resulting from any
Hazardous Activity on or about the Building or the existence of a Hazardous
Condition at the Building; (iv) the violation of any Environmental Law; or
(v) the commencement or prosecution of any judicial or administrative
procedure arising out of any claims under any Environmental Law or common law
cause of action in which Landlord is named a party or in which it may
intervene.

 

(e)           Notwithstanding
anything herein set forth to the contrary, Tenant shall not use nor suffer or
permit, throughout the term of this Lease, the Demised Premises or any portion
thereof to be used for any of the following enterprises or purposes:

 

(i)            An employment agency (but any offices used by Tenant for
Tenant’s recruitment of personnel or for training such Tenant’s personnel in

 

4

 

connection with Tenant’s business shall not
be deemed to be a violation of this restriction);

 

(ii)           Offices for any governmental agency, public corporation,
commission or quasi-governmental entity or any Person not subject to lawsuit in
either the courts of the United States or the State of New York located in New
York County;

 

(iii)          An embassy or consular office;

 

(iv)          Health care professionals, including any medical,
dentistry, chiropractic, podiatry, drug or other rehabilitative office or
facility;

 

(v)           School, educational or training center;

 

(vi)          Bookstore, head shop or other enterprise a material portion
of whose business includes or whose space is devoted to the sale, leasing,
advertisement, promotion or delivery of: pornographic or sexually explicit
magazines, books, films, video tapes, computer discs, games, photographs,
pictures, posters or other material or media; sexual devices; drug paraphernalia
of any description; or which advertises or holds itself out as an “adult”
bookstore, sex shop or similar business;

 

(vii)         Messenger service;

 

(viii)        The business of photographic, multilith
or multi graph reproductions or offset printing, except in connection with
Tenant’s own business or activities;

 

(ix)           A stockbroker’s or dealer’s office or for the underwriting
or sale of securities unless used solely for general and executive offices of
such entity and not for the sale of securities to the general public, except
via telecommunications devices;

 

(x)            Clerical support facility providing services to persons
outside of the Demised Premises;

 

(xi)           Showroom or exhibition hall;

 

(xii)          A banking, trust company, or safe deposit business;

 

(xiii)         A savings bank, or a savings and loan
association or a loan company;

 

(xiv)        The  sale  of 
travelers’  checks  and/or 
foreign  money exchange;

 

5

 

(xv)         The offices or business of a welfare, drug or alcohol
dependency treatment center, or similar agency, whether public or private;

 

Fortune tellers, tarot card
readers or similar establishments, arcade-type use, including without
limitation, amusement devices, games or machines or pool hall;

 

Betting parlors, gambling
casinos or gambling-type establishments;

 

Nightclub, disco, catering
establishment, restaurant, fast food restaurant, delicatessen, grocery store,
establishment or counter for the sale of all on- or off-premises consumption of
food or any other facility for the handling, storage, distribution or sale of
food and foodstuff; provided, however, that in connection with, and incidental
to, Tenant’s use of the Demised Premises for the purposes first set forth in Section 2.01(a),
at its expense and upon compliance with all of the terms and conditions of this
Lease and all Applicable Laws and all Requirements, may use a portion of the
Demised Premises as a pantry for the purpose only of warming prepared foods by
microwave-oven or electrical warming devices which are designed primarily for
the aforesaid purpose, and dispensing of food to its officers, employees and
invitees conducting business with Tenant. 
Tenant may also install vending machines for the exclusive use of its
officers, employees and such invitees, each of which vending machine (if it
dispenses any beverages or other liquids or refrigerates) shall have a
waterproof pan located thereunder, connected to a drain;

 

Uses that attract unusual
crowds to the sidewalks around the building or create unusual noise or disturbances;
or

 

Use by entities or
organizations that openly advocate the overthrow of, or are otherwise hostile
to, the State of Israel or espouse anti-semitic views, or are deemed by the
United States State Department to be terrorists or sponsors of terrorism.

 

(f)            The
obligations of Tenant under this Section 2.01 shall survive
the expiration or earlier termination of the Term.

 

2.02         Tenant
shall not at any time use or occupy the Demised Premises in violation of the
Certificate of Occupancy then issued for the Demised Premises or for the
Building and in the event that any department of the City or State of New York
shall hereafter contend or declare by notice, violation, order or in any other
manner whatsoever that the Demised Premises are used for a purpose which is a
violation of such Certificate of Occupancy, Tenant shall, upon receipt of
written notice from Landlord or any Governmental Authority, immediately
discontinue such use of the Demised Premises.

 

6

 

2.03         Tenant
shall not suffer or permit the Demised Premises or any part thereof to be used
in any manner or anything to be done therein or anything to be brought into or
kept therein which, in the reasonable judgment of Landlord, shall in any way
impair or tend to impair the character, reputation or appearance of the
Building as a high quality office building, impair or interfere with or tend to
impair or interfere with any of the Building services or the proper and
economic heating, cleaning, air conditioning or other servicing of the Building
or the Demised Premises, or impair or interfere with or tend to impair or
interfere with the use of any of the other areas of the Building by, or
occasion discomfort, inconvenience or annoyance to, any of the other tenants or
occupants of the Building.  Tenant shall
not install any electrical or other equipment of any kind which, in the
reasonable judgment of Landlord, might cause any such impairment, interference,
discomfort, inconvenience or annoyance; provided, however, that the use or
installation of personal computers, computer peripherals, photocopying and
other machines customarily employed in general business offices shall be
permitted so long as such use does not (i) require consumption of
electricity in excess of the service required to be provided to the Demised
Premises hereunder to be exceeded, (ii) cause any vibration to affect the
Building structure and floor slabs and (iii) result in any unreasonably
intrusive sound to emanate from the Demised Premises.

 

2.04         If
any governmental license or permit shall be required for the proper and lawful
conduct of Tenant’s business or other activity carried on in the Demised
Premises, and if the failure to secure such license or permit might or would,
in any way, adversely affect Landlord or the Building, then Tenant, at Tenant’s
expense, shall duly procure and thereafter maintain such license or permit and
submit the same for inspection by Landlord. Tenant, at Tenant’s expense, shall
at all times comply with the requirements of each such license or permit.  Landlord shall, at Tenant’s sole cost and
expense, cooperate with Tenant as may be reasonably required to obtain any such
license or permit and otherwise in connection with matters involving the use or
occupancy of the Demised Premises.

 

2.05         In
the event that Tenant shall be served with a written order, violation or
summons from any municipal or governmental agency relating to the conduct of
the then business of Tenant in the Demised Premises, Tenant shall notify Landlord
within five (5) business days of Tenant’s receipt of same by certified
mail of the existence of such order, violation or summons and enclose an
conformed copy thereof.  Tenant shall,
likewise, give notice to Landlord of any order, request or requirement given to
it by any company insuring the Demised Premises.

 

3.                                      Condition
of the Demised Premises: AS IS Condition.

 

3.01         (a) 
Tenant accepts the Demised Premises in its “AS IS” condition, without any
express or implied representations or warranties of any kind by Landlord, its
brokers, managers or agents, or the employees of any of them regarding the
Demised Premises and Landlord shall not have any obligation to construct or
install any tenant improvements or alterations or to pay for any such construction
of installation.

 

7

 

There
shall be no Landlord’s Work to be done with respect to the Demised Premises.

 

3.02                           (a)                                  Tenant hereby
expressly acknowledges that Tenant has been informed by Landlord that there may
be material containing asbestos in the Building.

 

(b)                                 Landlord shall not be liable
for any injury to Tenant’s officers, agents, employees, contractors or invitees
resulting from the presence of asbestos-containing material in the Demised
Premises or the Building that is treated in compliance with laws, addressed in
accordance with the provisions of Article 10 and Section 13.02(e) of
this Lease.  Tenant hereby agrees to hold
Landlord harmless from and against any and all costs and expenses (including
reasonable attorneys’ fees and expenses) arising from any claims or liability
asserted by or on behalf of any officer, agent, employee, contractor or invitee
of Tenant on account of, relating to, or based upon, the presence of
asbestos-containing material in the Demised Premises and the Building that is
treated in compliance with laws, orders, rules or regulations of any
Governmental Authority having jurisdiction thereof; addressed in accordance
with the provisions of Article 10 and Section 13.02(e) of this Lease.

 

4.                                      When
Demised Premises Ready for Occupancy.

 

4.01                           The Demised Premises shall
be deemed ready for occupancy immediately upon execution and delivery of this
Lease.

 

5.                                      Adjustments
of Rents.

 

5.01                           As used in this Article 5
the words and terms which follow mean and include the following:

 

(a)                                  “Tax Year”
shall mean each period of twelve (12) months, commencing on the first day of July of
each such period, in which occurs any part of the term of this Lease or such
other period of twelve (12) months occurring during the term of this Lease as
hereafter may be duly adopted as the fiscal year for the real estate tax
purposes of the City of New York.

 

(b)                                 “Tenant’s Proportionate Share”
shall mean four and fifty-eight hundredths percent (4.58%).

 

(c)                                  “Area of the Demised Premises”
shall mean the rentable square foot area of the Demised Premises (which the
parties have agreed, for purposes of this Article 5 and this
Lease, shall be 5,707 rentable square feet).

 

(d)                                 “Real Estate Taxes”
shall mean any and all real estate and ad
valorem taxes, assessments, water rates, sewer rents, fines,
business improvement district impositions, school and other special district
taxes and assessments and any other ad

 

8

 

valorem charges now or
hereafter levied and payable which are or after the passage of time may become
liens against Lot 24 in Block 888 on the Tax Map of the City of New York and
land appurtenant thereto, whether foreseen or unforeseen, ordinary or
extraordinary; and also any and all license fees or similar charges which may
be imposed by any Governmental Authority or quasi-Governmental Authority
against Lot 24 in Block 888 on the Tax Map of the City of New York and land
appurtenant thereto in connection with the use or occupancy of the Demised
Premises or Building, or for use of walks, chutes, street vaults and other
space beyond the lot line of the Real Property and on or abutting the public
sidewalks and/or highways in
front or adjoining the Real Property or pursuant to any Environmental Laws for
the use of any furnaces, compactors, incinerators, parking areas or for other
matters covered by any such law. 
Notwithstanding anything set forth to the contrary herein, Real Estate
Taxes shall not be deemed to include (i) any taxes on Landlord’s income, (ii) franchise
taxes, (iii) estate, transfer, gift or inheritance taxes, (iv) penalties
and interest on Real Estate Taxes incurred as a result of Landlord’s failure to
timely make tax payments, except if Tenant has not timely made its tax payments
due under this Lease or (v) any similar taxes imposed on Landlord, unless
and provided that if at any time during the Term the methods of taxation
prevailing on the date hereof shall be altered so that in lieu of or as a
substitute for all or any portion of the Real Estate Taxes there shall be
imposed on real estate or the owners or lessees thereof any tax (income,
franchise or otherwise), assessment, charge, levy or imposition, on the rents
derived from real estate or on personal property, fixtures, furnishings or
other property, then such tax, assessment, charge, levy or imposition shall be
deemed to be a Real Estate Tax for the purposes of this Article 5.  If any assessment may be paid in more than
one installment, Landlord agrees to elect to pay such assessment in the maximum
number of permitted installments and there shall be included in Real Estate
Taxes for any year (or part thereof) occurring during the Term hereof, the
installment (including any interest factor payable in connection therewith)
payable during such year.

 

(e)                                  “Real Estate Tax Base”
shall mean the Real Estate Taxes assessed against the Real Property for the
fiscal tax year of the City of New York commencing on July 1st, 2009 and expiring June 30th, 2010.

 

(f)                                    “Escalation Statement”
shall mean a statement in writing signed by Landlord, setting forth the amount
payable by Tenant for a specified Tax Year pursuant to this Article 5.

 

5.02                           If the Real Estate Taxes for
any Tax Year or portion thereof (extrapolated over a 12 month period) shall be
greater (resulting in an excess) than the Real Estate Tax Base, then Tenant
shall, in the case of such an excess, pay to Landlord as additional rent for
the Demised Premises for such Tax Year an amount equal to Tenant’s
Proportionate Share of such excess.

 

5.03                           Any such additional rent
payable by reason of the provisions of Section 5.02 hereof
shall be payable within thirty (30) business days after Landlord shall furnish
to Tenant an Escalation Statement together with a copy of the real estate tax
bills with respect to Real Estate Taxes for any Tax Year.  The Escalation Statement to be furnished by

 

9

 

Landlord as provided above,
together with copies of real estate tax bills, shall constitute a final
determination as between Landlord and Tenant of the Real Estate Taxes for the
periods represented thereby absent manifest error.  In the event that Tenant pays any amounts due
pursuant to Section 5.02 late, Tenant shall pay Landlord a late
fee at the rate set forth in Section 39.01, and Tenant shall be liable for any
interest charged or penalties imposed by Landlord’s mortgagee or the taxing
authority due to Landlord’s late payment of the portion of taxes due occasioned
by Tenant’s tardiness.

 

5.04                           Landlord’s failure to render
an Escalation Statement with respect to any Tax Year shall not prejudice
Landlord’s right to thereafter render an Escalation Statement with respect
thereto or with respect to any subsequent Tax Year.  Tenant’s obligation to pay escalations for
any increases in Real Estate Taxes during the term of this Lease shall survive
the expiration or earlier termination of this Lease.

 

5.05                           In the event (i) that
the date of the expiration or other termination of this Lease shall be a day
other than the last day of a Tax Year, or (ii) of any increase or decrease
in the Area of the Demised Premises (as may be provided herein), then in each
such event in applying the provisions of this Article 5 with respect to any Tax Year in which such
event shall have occurred, appropriate adjustments shall be made to reflect the
occurrence of such event on a basis consistent with the principles underlying
the provisions of this Article 5, taking into consideration (y) the
portion of such Tax Year which shall have elapsed prior to the date of such
expiration or termination or (z), in the case of any such increase or decrease,
the portion of the Demised Premises to which the same relates.

 

5.06                           Payments shall be made
pursuant to this Article 5 notwithstanding the fact that an Escalation
Statement is furnished to Tenant after the termination of the term of this
Lease.

 

5.07                           In case the Real Estate
Taxes for any Tax Year or part thereof shall be reduced before Tenant shall
have paid Tenant’s Proportionate Share of any excess thereof in respect of such
Tax Year, pursuant to Section 5.02 hereof, the Real Estate Taxes for such
Tax Year shall be deemed to include any expenses, including reasonable counsel
fees, incurred by Landlord in connection with reducing the assessed valuation
and/or in obtaining such reduction.

 

5.08                           Should the Real Estate Tax
Base be reduced by final determination of legal proceedings, settlement or
otherwise, then, the additional rent theretofore paid or payable hereunder for
all subsequent Tax Years shall be recomputed on the basis of such reduction,
and Tenant shall pay to Landlord, as additional rent, within thirty (30) days
after being billed therefor, any deficiency between the amount of such
additional rent as theretofore computed and the amount thereof due as the
result of such recomputations.

 

5.09                           If, after Tenant shall have
made a payment of additional rent under Section 5.02, Landlord shall receive a refund of, or
credit against, any portion of the Real Estate Taxes payable for any Tax Year
after the Tax Year used to determine the Real Estate Tax Base on which such
payment of additional rent was based as a result of a reduction of such

 

10

 

Real Estate Taxes by final
determination of legal proceedings, settlement or otherwise, Landlord shall, at
Landlord’s discretion, either (a) refund or credit Tenant’s Proportionate
Share of the refund of, or credit against, Real Estate Taxes less such Tenant’s
Proportionate Share of expenses (including attorneys’, appraisers’ and other
professional fees) incurred by Landlord in connection with any such application
or proceeding (such net refund or credit being hereinafter referred to as the “Net Refund”)
or (b) on account of Real Estate Taxes due, credit Tenant such Net Refund
against the next payment of additional rent then due under this Lease.  If, prior to the payment of Real Estate Taxes
for any comparative year, Landlord shall have obtained a reduction of that
comparative year’s assessed valuation of the Land or Building, and therefore of
said Taxes, then the term “Real Estate Taxes” for that comparative year shall
be deemed to include the amount of Landlord’s expenses in obtaining such
reduction in assessed valuation, including attorneys’ and appraisers’ and other
professional fees.  This Paragraph shall
survive the expiration or earlier termination of this lease.

 

5.10                           Tenant shall pay to Landlord
any occupancy taxes now being paid by Tenant if Landlord becomes responsible
for the payment thereof together with any new or additional occupancy tax or
rent tax payable by Landlord in the first instance or hereafter required to be
paid by Landlord to the extent such taxes (a) relate to the Demised
Premises and (b) are not in existence as of the execution of this
Lease.  Such tax shall be paid to
Landlord as additional rent within ten (10) days after demand.

 

5.11                           In no event shall the Fixed
Rent ever be reduced by operation of this Article 5 and the
rights and obligations of Landlord and Tenant under the provisions of this Article 5
with respect to any additional rent shall survive the termination of this
Lease.

 

6.                                      Intentionally
Left Blank.

 

7.                                      Subordination,
Notice to Lessors and Mortgagees.

 

7.01                           (a)                                  This Lease, and
all rights of Tenant hereunder, are and shall be subject and subordinate in all
respects to all ground leases, overriding leases and underlying leases of the
Land and/or the Building now or hereafter existing and to all mortgages which
may now or hereafter affect the Land and/or the Building and/or any of such
leases, whether or not such mortgages shall also cover other lands and/or
buildings, to each and every advance made or hereafter to be made under such
mortgages, and to all renewals, modifications, replacements and extensions of
and substitutions for such leases and such mortgages and spreaders and consolidations
of such mortgages.  Without limitation
upon the foregoing general provisions, it is understood that this Lease is and
shall be subject and subordinate to all present and future ground leases, or
underlying leases of the real property of which the Demised Premises form a
part (any or all of the foregoing being hereinafter referred to as a “ground
lease” or the “ground leases”); to all renewals, modifications, replacements or
extensions of and substitutions for such ground leases; to all mortgages now or
hereafter affecting such ground leases; and to all renewals, modifications,
replacements, extensions, spreaders or consolidations of any or all such
mortgages.

 

11

 

(b)                                 This Section 7.01 shall be self-operative
and no further instrument of subordination shall be required.  In confirmation of such subordination, Tenant
shall, within ten (10) business days, execute and deliver any instrument
that Landlord, the lessor of any such lease or the holder of any such mortgage
or any of their respective successors in interest may request to evidence such
subordination.  If, in connection with
obtaining financing for the Building, the Land, or the interest of the lessee
under any ground or underlying lease, any lending institution shall request
reasonable modifications of this Lease as a condition of such financing, Tenant
covenants not unreasonably to withhold or delay its agreement to such
modifications, provided that such modifications do not increase the obligations,
or materially and adversely affect the rights, of Tenant under this Lease or
the conduct of Tenant’s business.  The
leases to which this Lease is, at the time referred to, subject and subordinate
pursuant to this Article 7 are herein sometimes called “superior
leases,” and the mortgages to which this Lease is, at the time referred to,
subject and subordinate are herein sometimes called “superior mortgages,” and
the lessor of a superior lease or its successor in interest at the time
referred to is sometimes herein called a “lessor,” and the holder of a superior
mortgage or its successor in interest at the time referred to is sometimes
herein called a “holder.”

 

7.02                           In the event of any act or
omission of Landlord which would give Tenant the right, immediately or after
lapse of a period of time, to cancel or terminate this Lease, or to claim a
partial or total eviction, Tenant shall not exercise such right (i) until
it has given written notice of such act or omission to the holder of each
superior mortgage and the lessor of each superior lease whose name and address
shall previously have been furnished to Tenant in writing, and (ii) unless
such act or omission shall be one which is not capable of being remedied by
Landlord or such holder or lessor within a reasonable period of time, until a
reasonable period for remedying such act or omission shall have elapsed
following the giving of such notice and following the time when such holder or
lessor shall have become entitled under such superior mortgage or superior
lease, as the case may be, to remedy such act or omission (which reasonable
period shall in no event be less than the period to which Landlord would be
entitled under this Lease or otherwise, after similar notice, to effect such
remedy), provided such holder or lessor shall with due diligence give Tenant
written notice of its intention to, and commence and continue to remedy such
act or omission.

 

7.03                           Institution by a holder of a
superior mortgage of a suit, action or other proceeding to realize on its
interest in the real property which is subject to the mortgage or a sale of
such property in accordance with the terms of such mortgage shall not by
operation of law or otherwise result in a cancellation or termination of this
Lease or the obligations of Tenant hereunder (unless Tenant is specifically
named in a foreclosure proceeding).  If
the lessor of a superior lease or the holder of a superior mortgage shall
succeed to the rights of Landlord under this Lease, whether through possession
or foreclosure action or delivery of a new lease or deed, then at the request
of such party so succeeding to Landlord’s rights (hereinafter sometimes called “successor
landlord”) and upon such successor landlord’s written agreement to accept
Tenant’s attornment, Tenant shall attorn to and recognize such successor
landlord as Tenant’s landlord under this Lease,

 

12

 

and shall, within ten (10) business
days, execute and deliver any instrument that such successor landlord may
reasonably request to evidence such attornment. 
Upon such attornment, this Lease shall continue in full force and effect
as, or as if it were, a direct lease between the successor landlord and Tenant
upon all of the terms, covenants, conditions, agreements and provisions as are
set forth in this Lease, except that the successor landlord shall not:

 

(a)                                  be liable for
any previous act or omission of Landlord under this Lease,

 

(b)                                 be subject to any offset not
expressly provided for in this Lease, which shall have theretofore accrued to
Tenant against Landlord, or

 

(c)                                  be bound by any previous
modification of this Lease, not expressly provided for in this Lease, or by any
previous prepayment of more than one month’s Fixed Rent, unless such
modification or prepayment shall have been expressly approved in writing by the
lessor of the superior lease or the holder of the superior mortgage through or
by reason of which the successor landlord shall have succeeded to the rights of
Landlord under this Lease.

 

7.04                           If, in connection with
obtaining financing for the Building, a lending institution shall request
reasonable modifications in this Lease as a condition to such financing, Tenant
will not unreasonably withhold, delay or defer its consent thereto, provided that
such modifications do not adversely affect the leasehold interest hereby
created, Tenant’s rights hereunder or the use of the Demised Premises for the
conduct of Tenant’s business, except to a de
minimus extent.

 

7.05                           There shall be no merger of
this Lease, nor of the leasehold estate created by this Lease, with the
leasehold estate created by any ground lease, overriding lease or underlying
lease or any interest therein, by reason of the fact that the same person,
partnership, firm or corporation or other entity may acquire or own such
estates or any parts thereof, directly or indirectly; nor shall any of the
rights or obligations of Tenant hereunder in any manner be affected whether or
not Tenant shall hereafter acquire or have an interest in the leasehold estate
created by any such ground lease, overriding lease or underlying lease; and no
merger shall occur until all persons, firms, corporations and other entities,
including any leasehold mortgagee having an interest in the leasehold estate
created by any such ground lease, overriding lease or underlying lease shall
join in a written instrument affecting such merger and shall duly record it;
but if Landlord desires to effect such a merger and it shall be determined by
counsel to Landlord that Tenant’s execution of such instrument of merger is
necessary to accomplish such merger, Tenant shall execute and acknowledge the
same within ten (10) days after request therefor, provided that Tenant
shall incur no additional liability by reason thereof and its rights hereunder
shall not be adversely affected.

 

13

 

8.                                      Quiet
Enjoyment.

 

So long as Tenant pays all
of the Rent due hereunder and performs all of Tenant’s other obligations
hereunder, Tenant shall peaceably and quietly have, hold and enjoy the Demised
Premises subject, nevertheless, to the obligations of this Lease and, as
provided in Article 7, to the superior leases and the superior
mortgages.

 

9.                                      Brokerage.

 

Tenant covenants, represents
and warrants that Tenant has had no dealings or communications with any broker
or agent other than Cushman & Wakefield, Inc.  and Colliers ABR, Inc.  (collectively hereinafter referred to as “Broker”)
in connection with the negotiation or consummation of this Lease, and Tenant covenants
and agrees to pay, defend, hold harmless and indemnify Landlord from and
against any and all claims, actions, costs, expenses (including reasonable
attorneys’ fees) or liabilities for any compensation, commissions or charges
claimed by any broker or agent, other than Broker, with respect to this Lease
or the negotiation thereof by reason of a breach.  Landlord agrees with Tenant that it is
Landlord’s obligation (and not Tenant’s) to pay Broker and Landlord shall pay
Broker such compensation, commission or charges due to Broker pursuant to
separate agreement previously entered into by Landlord.

 

10.                               Compliance
with Laws.

 

10.01                     Tenant, at Tenant’s expense,
shall comply with all laws and ordinances, and all rules, orders and
regulations of all Governmental Authorities and of all insurance bodies, at any
time duly issued or in force, applicable to the Demised Premises or any part
thereof or to Tenant’s manner of use thereof or, with respect to the Building,
if arising solely out of Tenant’s manner of use of the Demised Premises or the
Building, except that Tenant shall not hereby be under any obligation to comply
with any law, ordinance, rule, order or regulation requiring any structural
alteration of or in connection with the Demised Premises, unless such
alteration is required by reason of a condition which has been created by, or
at the instance of Tenant, or is attributable to any improper use to which
Tenant puts the Demised Premises, or is required by reason of a breach of any
of Tenant’s covenants and agreements hereunder. 
Where any structural alteration within the Demised Premises or with
respect to the Building systems serving the Demised Premises and located on the
floor on which the Demised Premises are located is required by any change in
the law, ordinance, rule, order or regulation, and, by reason of the express
exception hereinabove contained, Tenant is not under any obligation to make
such alteration, then Landlord shall make such alteration and pay the cost
thereof.

 

10.02                     Except as set forth above,
Tenant shall be responsible for all compliance with the Americans With
Disabilities Act of 1990, as amended, within the Demised Premises and Landlord
is responsible for compliance therewith outside of the Demised Premises.

 

14

 

11.                               Insurance
and Indemnity.

 

11.01                     Tenant, at its expense,
shall obtain and keep in full force and effect a policy of commercial general
liability insurance under which Tenant is named as the insured and Landlord,
Landlord’s managing agent and any superior lessors and any mortgagees (whose
names shall have been furnished to Tenant) are named as additional insureds,
and which shall contain a contractual liability endorsement insuring Tenant
from and against all cost, expense and/or liability arising out of or based
upon any and all claims, accidents, injuries, costs, liabilities and damages
referred to in Section 11.03. 
Such policy shall have deductibles no greater than five thousand and
no/100 ($5,000.00) dollars.  Such policy
shall be primary insurance for all additional insureds and contain a provision
that no act or omission of Tenant shall affect or limit the obligation of the
insurance company to pay the amount of any loss sustained and that the policy
shall be non-cancelable with respect to Landlord and superior lessors and
mortgagees (whose names shall have been furnished to Tenant) nor shall the
amount thereof be reduced unless thirty (30) days’ written notice shall have
first been given to Landlord by certified mail, return receipt requested, which
notice shall contain the policy number and the names of the insured and
additional insureds.  The minimum limits
of liability shall be a combined single limit with respect to each occurrence
in an amount of not less than two million and no/100 ($2,000,000.00) dollars
for injury (or death) or damage to property arising from any one occurrence and
three million and no/100 ($3,000,000.00) dollars from the aggregate of all
occurrences within each policy year and such policy shall include a provision
that said aggregate limit shall apply separately at the Demised Premises and
that said insurer shall provide notice to Landlord.  If the aggregate limit applying to the
Demised Premises is reduced by the payment of a claim or establishment of a
reserve, Tenant shall take immediate steps to have the aggregate limit restored
by endorsement to the existing policy or the purchase of an additional
insurance policy.  All insurance required
to be carried by Tenant pursuant to the terms of this Lease shall be effected
under valid and enforceable policies issued by reputable and independent
insurers permitted to do business in the State of New York, and rated in Best’s
Insurance Guide, or any successor thereto (or if there be none, an organization
having a national reputation) as having a “Best’s Rating” of “A-” and a “Financial
Size Category” of at least “7” or if such ratings are not then in effect, their
equivalent.  Such insurance may be
carried under a blanket policy covering the Demised Premises and other
locations of Tenant, if any, provided such policy contains an endorsement (i) naming
Landlord and any person and entity designated by Landlord as additional
insureds, (ii) specifically referencing the Demised Premises; and (iii) guaranteeing
a minimum limit available for the Demised Premises equal to the limits of
liability required under this Lease.

 

11.02                     Tenant shall immediately
notify Landlord of any fire or accident in the Demised Premises.

 

11.03                     Tenant acknowledges that
Landlord shall not be required to insure Tenant’s Changes or Tenant’s
Property.  Tenant agrees that if any such
alterations or any of Tenant’s Property shall be damaged, Tenant shall look
solely to itself and/or any insurance it may elect to maintain for
reimbursement and to be made whole for such damage and losses.

 

15

 

Tenant shall cooperate with
Landlord and Landlord’s insurance companies in the adjustment of any claims for
any damage to the Building.

 

11.04                     On the Commencement Date,
Tenant shall deliver to Landlord appropriate certificates of insurance stating
that the appropriate insurance policy has been issued and permitting the
certificate holder to rely on the fact insurance has been issued and is in full
force and effect, including evidence of waivers of subrogation required to be
carried pursuant to Section 11.05. 
Evidence of each renewal or replacement of a policy shall be delivered
by Tenant to Landlord at least thirty (30) days prior to the expiration of such
policy.

 

11.05                     Tenant shall cause each
insurance policy carried by Tenant and insuring the Demised Premises, its
improvements, changes, alterations, fixtures, contents and the other Tenant’s
Property against loss, to be written in a manner so as to provide that the
insurance company waives all right of recovery by way of subrogation against
Landlord in connection with any loss or damage covered by any such
policies.  Landlord shall not be liable
to Tenant or any person or entity claiming by or through Tenant for any loss or
damage caused by fire or any of the risks enumerated in Tenant’s policies or
for any indemnity with respect thereto provided such waiver was in effect with
respect to such policies at the time of such loss or damage, or for any other
loss or damage due to any other cause which would customarily be covered by a
standard extended coverage casualty policy whether or not proceeds are
available to Tenant.

 

11.06                     Any Building employee to
whom any property shall be entrusted by or on behalf of Tenant shall be deemed
to be acting as Tenant’s agent with respect to such property and neither
Landlord nor its agents shall be liable for any damage to property of Tenant or
of others entrusted to employees of the Building, nor for the loss of or damage
to any property of Tenant by theft or otherwise.  None of Landlord, its agents, any superior
mortgagee or superior lessor shall be liable for any injury or damage to
Persons or property, or interruption of Tenant’s business, resulting from fire
or other casualty; nor shall any of Landlord, its agents, any mortgagee or
superior lessor be liable for any such damage caused by other tenants or
Persons in the Building or caused by construction of any private, public or
quasi-public work; nor shall Landlord be liable for any latent defect in the
Demised Premises or in the Building (except that Landlord shall be required to
repair the same to the extent provided in Article 3).

 

11.07                     Unless otherwise expressly
required herein, Tenant shall not do or permit to be done any act or thing upon
the Demised Premises which shall invalidate or be in conflict with a standard
Insurance Services Office “all-risks” insurance policy or comparable broad form
coverage such as is provided under the ISO Commercial Risks Services, Inc.,
1983 Form entitled “Causes of Loss - Special Form”; and shall not do, or
permit anything to be done in or upon the Demised Premises, or bring or keep
anything therein, except as now or hereafter permitted by the New York City
Fire Department, New York Board of Fire Underwriters, New York Fire Insurance
Rating Organization or other authority having jurisdiction and then only in
such quantity and manner of storage as not to increase the rate for fire
insurance applicable to the Building, or use the Demised Premises

 

16

 

so as to increase the rate
of fire insurance on the Building or on property located therein, over that in
similar type buildings or in effect on the Commencement Date.

 

11.08                     If by reason of Tenant’s
failure to comply with the provisions of this Article 11, the fire insurance rate shall be higher
than it otherwise would be, then Tenant shall desist from doing or permitting
to be done any such act or thing and shall reimburse Landlord, as additional rent
hereunder, for that portion of all fire insurance premiums thereafter paid by
Landlord which shall have been charged because of such failure by Tenant, and
shall make such reimbursement upon demand by Landlord.  In any action or proceeding wherein Landlord
and Tenant are parties, a schedule or “make up” of rates for the Building or
the Demised Premises issued by the New York Fire Insurance Rating Organization,
or other body fixing such fire insurance rates, shall be conclusive evidence of
the facts therein stated and of the several items and charges in the fire
insurance rates then applicable to the Building.

 

11.09                     Tenant shall not do or
permit any act or thing to be done upon the Demised Premises which may subject
Landlord to any liability or responsibility for injury, damages to Persons or
property or to any liability by reason of any violation of Applicable Laws, but
shall exercise such control over the Demised Premises as to fully protect
Landlord against any such liability.

 

11.10                     Tenant shall indemnify and
save harmless Landlord, all superior lessors and all  superior 
mortgagees  and  each 
of their  respective  partners, 
directors,  officers, shareholders,
principals, agents and employees (collectively, the “Indemnitees”) from
and against (i) all actual third party claims of whatever nature against
the Indemnitees to the extent arising from any act or omission of Tenant, its
contractors, licensees, agents, servants or employees; (ii) all actual
third party claims against the Indemnitees to the extent arising from any
accident, injury or damage whatsoever caused to any Person or to the property
of any Person and occurring during the Term in the Demised Premises, except to
the extent caused by the negligent or wrongful act of Landlord or its employees,
agents or contractors and (iii) all actual third party claims against the
Indemnitees arising from any accident, injury or damage occurring outside of
the Demised Premises but anywhere within or about the Real Property, to the
extent such accident, injury, or damage results from any act or omission of
Tenant or Tenant’s agents or employees. 
Tenant agrees that with respect to insurance for claims for personal
injury or damage to property of Persons other than Landlord or Tenant in or
about the Demised Premises, Tenant’s insurance shall be primary without
contribution from any other insurance carried by or for the benefit of Landlord
or any other Indemnitee.  Tenant shall
indemnify and save harmless Landlord and its agents against and from (a) any
and all claims (i) arising from (x) the conduct or management by
Tenant (or its permitted subtenants or assignees) of the Demised Premises or of
any business therein, or (y) any work or thing whatsoever done by Tenant
during the term of this Lease or during the period of time, if any, prior to
the Commencement Date that Tenant may have been given access to the Demised
Premises, or (ii) arising from any negligent or otherwise wrongful act or
omission of Tenant or any of its subtenants or its or their employees, invitees,
agents or contractors, or (iii) arising from Tenant’s failure to perform
any of the covenants or conditions under this Lease, and (b) all costs,
expenses

 

17

 

and liabilities incurred in
or in connection with each such claim or action or proceeding brought thereon,
including reasonable attorneys’ fees. 
This indemnity and hold harmless agreement shall include indemnity from
and against any and all liability, fines, suits, demands, costs and expenses of
any kind or nature (including, without limitation, attorneys’ fees and
disbursements) incurred in or in connection with any such claim or proceeding
brought thereon, and the defense thereof. 
Landlord, at Tenant’s sole cost and expense, shall reasonably cooperate
in the defense of any claim hereunder. 
Landlord shall not settle any such claim without Tenant’s prior consent,
which consent shall not be unreasonably withheld, conditioned or delayed.

 

11.11                     Landlord shall indemnify and
save harmless Tenant, all superior lessors and each of their respective
partners, directors, officers, shareholders, principals, agents and employees
(collectively, the “Tenant Indemnitees”) from and against (i) all
actual third party claims of whatever nature against the Tenant Indemnitees to
the extent arising from any act or omission of Landlord, its contractors,
licensees, agents, servants or employees, (ii) all actual third party
claims against the Tenant Indemnitees to the extent arising from any accident,
injury or damage whatsoever caused to any Person or to the property of any
Person and occurring during the Term in Demised Premises except if caused by
the negligence or willful misconduct of Tenant, its agents, employees and/or
contractors and (iii) all actual third party claims against the Tenant
Indemnitees to the extent arising from any accident, injury or damage occurring
outside of the Demised Premises but anywhere within or about the Real Property,
where such accident, injury, or damage results from any act of Landlord,
Landlord’s agents or  employees.  Landlord agrees that with respect to
insurance for claims for personal injury or damage to property of Persons other
than Landlord or Tenant in or about the Demised Premises, Landlord’s insurance
shall be primary without contribution from any other insurance carried by or
for the benefit of Tenant or any other Tenant Indemnitee.  Landlord shall indemnify and save harmless
Tenant and its agents against and from (a) any and all claims (i) arising
from (x) any negligent or otherwise wrongful act or omission of Landlord
or any of its tenants or its or their employees, invitees, agents or
contractors, (ii) arising from any negligent or otherwise wrongful act of
Landlord or its employees, invitees, agents or contractors, or (iii) arising
from Landlord’s failure to perform any of the covenants or conditions under
this Lease, and (b) all costs, expenses and liabilities incurred in or in
connection with each such claim or action or proceeding brought thereon,
including reasonable attorneys’ 
fees.  This indemnity and hold
harmless agreement shall include indemnity from and against any and all
liability, fines, suits, demands, costs and expenses of any kind or nature
(including, without limitation, attorneys’ fees and disbursements) incurred in
or in connection with any such claim or proceeding brought thereon, and the
defense thereof.  Tenant, at Landlord’s
sole cost and expense, shall reasonably cooperate in the defense of any claim
hereunder.  Tenant shall not settle any
such claim without Landlord’s prior written consent, which consent shall not be
unreasonably withheld, conditioned or delayed.

 

11.12                     If any claim, action or
proceeding is made or brought against Landlord, which claim, action or
proceeding Tenant shall be obligated to indemnify Landlord against, pursuant to
the terms of this Lease, then, upon demand by Landlord, Tenant, at its sole
cost and expense, shall resist or defend such claim, action or proceeding in
Landlord’s

 

18

 

name, if necessary, by such
attorneys as Landlord shall approve, which approval shall not be unreasonably
withheld.  Attorneys for Tenant’s insurer
shall hereby be deemed approved for purposes of this Section.

 

11.13                     The provisions of this Article 11
shall survive the expiration or earlier termination of the term hereof.

 

11.14                     Landlord represents that at
the time of execution of this Lease Landlord carries “Causes of Loss - Special
Form” insurance with coverage for 100% of replacement cost of the Building.

 

12.                               Rules and
Regulations.

 

12.01                     Tenant and its employees and
agents shall fully observe and comply with the Rules and Regulations
annexed hereto as Exhibit C and such reasonable changes therein (whether
by modification, elimination or addition) as Landlord at any time or times
hereafter may make and communicate in writing to Tenant; provided, however,
that in case of any conflict or inconsistency between the provisions of this
Lease and any of the Rules and Regulations as originally promulgated or as
changed, the provisions of this Lease shall control.  Landlord agrees not to enforce the Rules and
Regulations in a manner which unreasonably discriminates against Tenant.

 

12.02                     Nothing contained in this
Lease shall be construed to impose upon Landlord any duty or obligation to
Tenant to enforce the Rules and Regulations or the terms, covenants or
conditions in any other lease, as against any other tenant, and Landlord shall
not be liable to Tenant for violation of the same by any other tenant or its
employees, agents, contractors or visitors.

 

13.                               Tenant’s
Changes.

 

13.01                     Tenant covenants and agrees
that Tenant shall make no alterations, decorations, installations, repairs,
additions, improvements or replacements (hereinafter collectively called “Tenant Changes”
or “Tenant’s Changes”) in, to or about the Demised Premises without Landlord’s
prior written consent, and then only by contractors or mechanics approved by
Landlord, except the contractors or mechanics named in Exhibit B
annexed hereto and approved by Landlord, which approval of such contractors and
mechanics shall not be unreasonably withheld with respect to Tenant’s Changes
of a nonstructural nature that do not affect any of the Building’s systems or
the exterior of the Building.  Landlord
agrees not to unreasonably withhold or delay its consent to any Tenant Changes
within the Demised Premises (including the plans and specifications and the
contractors therefor) which (i) do not in Landlord’s judgment affect the
structure of the Building or any part thereof or do not in Landlord’s judgment
adversely affect the heating, ventilating, air conditioning, plumbing,
electrical or other Building systems or cause a disproportionate share of
available quantities of electricity to the Building to be consumed in the
Demised Premises, and (ii) do not affect the exterior appearance of the
Building.  Nothing in this Section 13.01
shall be construed to require Landlord’s consent for Tenant

 

19

 

Changes with an aggregate
cost of less than $50,000.00, painting of the inside of the Demised Premises by
Tenant and other purely cosmetic decorations to the Demised Premises which are
not visible from the exterior of the Building and which do not affect the
structure of the Building or any of the Building systems.  Tenant’s Changes shall be done at Tenant’s
sole expense and at such time and in such manner as Landlord may from time to
time reasonably designate.  Prior to the
commencement of any Tenant Changes requiring Landlord’s consent, Tenant shall
submit to Landlord, for Landlord’s written approval, plans and specifications
(to be prepared by and at the expense of Tenant) of such proposed Tenant
Changes in detail reasonably satisfactory to Landlord.  In no event shall any material or equipment
be incorporated in or to the Demised Premises in connection with any such
Tenant’s Changes which is not new and first quality, or is subject to any lien,
security agreement, charge, mortgage or encumbrance of any kind whatsoever or
is subject to any conditional sale or other similar or dissimilar title
retention agreement.  Any mechanic’s lien
filed against the Demised Premises or the Building for work done for, or
claimed to have been done for, or materials furnished to, or claimed to have
been furnished to Tenant shall be discharged by Tenant within thirty (30) days
thereafter, at Tenant’s expense, by filing the bond required by law or
otherwise.  All Tenant’s Changes shall at
all times comply with (1) the laws, rules, orders and regulations of
Governmental Authorities having jurisdiction thereof, (2) the Rules and
Regulations, and (3) the plans and specifications prepared by and at the
expense of Tenant theretofore submitted to Landlord for Landlord’s prior
written approval.  No Tenant’s Changes
shall be undertaken, started or begun by Tenant or by its agents, employees,
contractors or any one else acting for or on behalf of Tenant until Landlord
has approved such plans and specifications and no amendments or additions to
such plans and specifications shall be made without the prior written consent
of Landlord.  Tenant agrees that it will
not at any time prior to or during the term of this Lease, either directly or
indirectly, use any contractors and/or labor and/or materials if the use of such
contractors and/or labor and/or materials would or will create any difficulty
with other contractors and/or labor engaged by Tenant or Landlord or others
engaged in the construction, maintenance and/or operation of the Building or
any part thereof.  No approval or consent
given by Landlord hereunder shall constitute certification by Landlord that any
proposed Tenant’s Change complies with clauses (1) and (2) of this Section 13.01.  Tenant shall submit its plans and
specification for any of Tenant’s proposed work for which it seeks approval and
Tenant shall reimburse Landlord, within twenty (20) business days after receipt
of a bill thereof, for Landlord’s actual out-of-pocket expenses and costs
incurred in the architectural and/or engineering review thereof.  With respect to any Tenant Changes requiring
filing within the New York City Building Department, Tenant shall deliver
copies of all permits prior to the commencement of any work and upon completion
shall deliver copies of all final sign-offs by all applicable inspectors.  In addition, with respect to any Tenant
Changes, Tenant shall pay to Landlord, within twenty business (20) days after
receipt of a bill therefor, an amount equal to Landlord’s actual out-of-pocket
costs and expenses for Landlord’s indirect costs, field supervision and
coordination in connection therewith. 
Tenant shall pay within twenty business (20) days after demand therefor,
the reasonable costs and expenses of Landlord’s independent consultants in
connection with the review of any additional submissions for alterations to the
Demised Premises not shown on the sketch attached hereto; provided, however,
such costs or expenses shall not exceed Two Thousand Dollars ($2,000.00) in the
aggregate.

 

20

 

13.02                     (a)                                  All work
performed or installations made by Tenant (or by Landlord at Tenant’s request
and expense) in and to the Demised Premises shall be in compliance with the
requirements of Local Law 5 of 1973 of the City of New York, as heretofore and
hereafter amended (“Local Law 5”).  The
foregoing shall include, without limitation, (i) compliance with the
compartmentation requirements of Local Law 5, (ii) relocation of existing
fire detection devices, alarm signals and/or communication devices necessitated
by the alteration of the Demised Premises, and (iii) installation of such
additional fire control or detection devices as may be required by applicable
governmental or quasi-governmental rules, regulations or requirements
(including, without limitation, any requirements of the New York Board of Fire
Underwriters) as a result of Tenant’s manner of use of the Demised
Premises.  The design of such
installations shall be at Tenant’s discretion so long as the results comply
with Local Law 5.  Landlord shall not be
deemed unreasonable in withholding its consent to any plans or specifications
not complying with the requirements of Local Law 5.

 

(b)                                 Landlord shall not be
responsible for any damage to Tenant installed fire control or detection
devices nor shall Landlord have any responsibility for the maintenance or
replacement thereof unless damaged by Landlord. 
Tenant shall indemnify and hold Landlord harmless from and against all
claims, loss, damage, liability or expense (including, without limitation,
reasonable attorneys’ fees and disbursements) suffered or incurred by Landlord
by reason of the installation and/or operation of any such devices by Tenant or
any person acting by or through Tenant. 
Landlord shall be responsible for the installation, repair and
maintenance of any fire control or detection services or devices required by
law for the occupancy of the Demised Premises for the use allowed hereunder.

 

(c)                                  The fact that Landlord shall
have heretofore consented to any installations or alterations made by Tenant in
the Demised Premises shall not relieve Tenant of its obligations pursuant to
this Article with respect to such installation or alterations.

 

(d)                                 No Tenant’s Changes shall
affect any part of the Building other than the Demised Premises or adversely
affect any service required to be furnished by Landlord to Tenant or to any
other tenant or occupant of the Building or reduce the value or utility of the
Building.  No Tenant’s Changes shall
affect the outside appearance of the Building or the color or style of any
Venetian blinds (except that Tenant may remove any Venetian blinds provided
that they are promptly replaced by Tenant with blinds of a similar type,
material and color).  All business
machines and mechanical equipment shall be placed and maintained by Tenant in
settings sufficient, in Landlord’s reasonable judgment, to absorb and prevent
vibration, noise and annoyance to other tenants or occupants of the Building.
Prior to the commencement of each proposed Tenant’s Changes, Tenant shall furnish
to Landlord duplicate original policies of workmen’s compensation insurance
covering all persons to be employed in connection with such Tenant’s Changes,
including those to be employed by all contractors and subcontractors, and of
comprehensive public liability insurance (including property damage coverage)
in which Landlord, its agents and any lessor under any ground or underlying
lease shall be named as additional insureds, which

 

21

 

policies shall be issued by
companies and shall be in the form and amounts reasonably satisfactory to
Landlord and shall be maintained by Tenant until the completion of such Tenant’s
Changes.  All fireproof wood test
reports, electrical and air conditioning certificates, and all other permits,
approvals and certificates required by all Governmental Authorities shall be
timely obtained by Tenant and submitted to Landlord.

 

(e)                                  If any laws, orders, rules or
regulations of any applicable Governmental Authority require that any asbestos
or other Hazardous Substance contained in or about the Demised Premises, or
brought into the Demised Premises by Tenant, be removed or dealt with in any
particular manner in connection with any Tenant’s Changes to the Demised
Premises, then it shall be Tenant’s obligation, at Tenant’s expense, to remove
or so deal with such asbestos or other Hazardous Substance in accordance with
all such laws, orders, rules and regulations.  In the event Tenant is required to remove or
deal with such asbestos or other Hazardous Substance in accordance with the
provisions of the foregoing sentence then, notwithstanding anything to the
contrary contained therein, Landlord, at Landlord’s election, shall have the
option to itself remove or so deal with such asbestos or other Hazardous
Substance and, in such event, Tenant shall pay to Landlord all of Landlord’s
reasonable costs in connection therewith within twenty (20) business days next
following the rendition of a statement thereof by Landlord to Tenant.

 

14.                               Tenant’s
Property.

 

14.01                     All fixtures, equipment,
alterations, improvements, installations and appurtenances attached to or built
into the Demised Premises as part of Landlord’s Work at the commencement of the
Term hereof shall not be removed or demolished at the expiration of said
term.  At Landlord’s option, to be
expressed to Tenant prior to any work being performed, all other alterations,
improvements, installations and appurtenances attached or built during the term
of this Lease shall be demolished and removed by Tenant upon the expiration or
earlier termination of the term hereof (which obligation shall survive  such 
expiration  or  earlier 
termination).  Any  and 
all  such  alterations, improvements, installations and
appurtenances, whether by Landlord or Tenant, which shall not be so demolished
and removed and remain a part of the Demised Premises, shall remain and be
deemed the property of Landlord and shall not be removed by Tenant or shall be
removed by Landlord at Landlord’s cost.

 

14.02                     All paneling, movable
partitions, lighting fixtures, special cabinet work, other business and trade
fixtures, machinery and equipment, communications equipment and office
equipment, whether or not attached to or built into the Demised Premises, which
are installed in the Demised Premises by or for the account of Tenant, without
expense to Landlord, and can be removed without permanent structural damage to
the Building, and all furniture, furnishings and other articles of movable
personal property owned by Tenant and located in the Demised Premises (all of
which are sometimes called “Tenant’s Property”) shall be and shall remain the
property of Tenant and may be removed by it at any time during the term of this
Lease; provided that if any of Tenant’s Property is removed, Tenant shall
repair or pay the reasonable cost of repairing any damage to the Demised
Premises or to the Building resulting from such removal.  Any equipment or

 

22

 

other property for which
Landlord shall have granted any allowance or credit to Tenant shall not be
deemed to have been installed by or for the account of Tenant, without expense
to Landlord, and shall not be considered Tenant’s Property.

 

14.03                     At or before the Expiration
Date, or the date of any earlier termination of this Lease, or as promptly as
practicable after such an earlier termination date, Tenant, at its expense,
shall remove from the Demised Premises all of Tenant’s Property except such
items thereof as Tenant shall have expressly agreed in writing with Landlord
were to remain and to become the property of Landlord, and Tenant shall repair
any damage to the Demised Premises or the Building resulting from such
removal.  Tenant shall leave the Demised
Premises in as good condition as when Tenant took possession, excepting
ordinary wear and tear and loss by fire or other casualty which Tenant is not
obligated to repair, failing which Landlord may restore the Demised Premises to
such condition and Tenant shall pay the reasonable cost thereof within thirty
(30) business days of the delivery to Tenant of an invoice for such
restoration.  The provisions of this Article 14
shall survive the expiration or earlier termination of this Lease and the term
hereof.

 

14.04                     Any other item of Tenant’s Property
(except money, securities and other like valuables) which shall remain in the
Demised Premises after the Expiration Date or after a period of seven (7) days
following an earlier termination date, may, at the option of Landlord, be
deemed to have been abandoned, and in such case either may be retained by
Landlord as its property or may be disposed of without accountability, in such
manner as Landlord may see fit at Tenant’s expense.

 

15.                               Repairs
and Maintenance.

 

15.01                     Tenant shall take good care
of the Demised Premises and, at its expense, make all non-structural,
non-capital repairs thereto as and when needed to preserve them in good working
order and condition; provided, however, Tenant need not make repairs to
Landlord’s Work if such repairs are necessitated by a material defect in the
workmanship of Landlord’s contractor that was not reasonably observable within
ten (10) business days of the Commencement Date and which are brought to
the attention of Landlord in writing by Tenant within three (3) months of
the Commencement Date, provided that to the extent that any such defect is
covered by any warranties or guarantees which have been assigned to Tenant
pursuant hereto and such warranties or guarantees are still in force and
effect, then Tenant shall be responsible for making such repairs.  In addition, Tenant, at its expense, shall
promptly make all repairs and replacements, ordinary or extraordinary, interior
or exterior, structural or otherwise, in and about the Demised Premises and the
Building, as shall be required solely by reason of (i) the performance or
existence of Tenant’s Changes, (ii) the installation, use or operation of
Tenant’s Property in the Demised Premises, (iii) the moving of Tenant’s
Property or any other property owned or being delivered to or from Tenant in or
out of the Building, (iv) any work, labor or service done for or equipment
supplied to Tenant or any subtenant, or (v) the misuse or neglect of
Tenant or any of its employees, visitors, subtenants, agents or contractors; but
Tenant shall not be responsible, and Landlord shall be responsible, for any of
such repairs as are required by reason of Landlord’s neglect or other fault in
performing any of Tenant’s

 

23

 

Changes which may be
undertaken by Landlord for Tenant’s account or are otherwise required by reason
of neglect or other fault of Landlord or its employees, agents or
contractors.  Except if required by the
neglect or other fault of Landlord or its employees, agents or contractors,
Tenant, at its expense, shall replace or repair all scratched, damaged or
broken doors and glass in or about the Demised Premises and shall be
responsible for all repairs, maintenance and replacement of wall and floor
coverings in the Demised Premises and for the repair and maintenance of all
lighting fixtures therein.

 

15.02                     Without limiting Tenant’s
obligations set forth in this Article, Tenant , at Tenant’s sole cost and
expense, shall also (i) repair and maintain the Demised Premises’ internal
air-distribution system which include, but are not limited to, ducts,
diffusers, return grills, to the extent these items are located in the Demised
Premises, to the point at which the same connects to the main distribution duct
for the Demised Premises; (ii) repair and maintain the internal electrical
system within the Demised Premises to the panel box serving the Demised
Premises and (iii) repair and maintain all plumbing fixtures (if any)
located in the Demised Premises.

 

15.03                     Tenant shall promptly make,
at Tenant’s expense, all repairs in and to the Demised Premises for which
Tenant is responsible, using only the contractors approved in writing by
Landlord, which approval of such contractors shall not be unreasonably withheld
for repairs or a nonstructural nature that do not adversely affect any of the
Building’s systems or exterior of the Building. 
Any other repairs in or to the Building or the facilities and systems
thereof for which Tenant is responsible shall be performed by Landlord at
Tenant’s reasonable expense.  Tenant
shall use the contractor designated by Landlord for the performance of any work
regarding fire and life safety system, provided such charges are commercially
reasonable.

 

15.04                     All repairs and replacements
made by or on behalf of Tenant or any person claiming through or under Tenant
shall be of good quality.  If Tenant
fails to make any such repairs or replacements, within fifteen (15) business
days (or immediately in the event of an emergency) after Landlord’s request
(or, except in the event of an emergency, within such longer period of time
reasonably required to repair and/or replace such item provided that Tenant
commences and diligently pursues the completion of such repair and/or
replacement) same may be made by Landlord at the reasonable expense of Tenant
and such expense shall be collectible as additional rent and shall be paid by
Tenant within twenty (20) business days after rendition of a bill therefor
together with an invoice of the contractor or other person who performed such
work.

 

15.05                     Subject to the terms of this
Lease, Landlord shall maintain, and repair the following elements of the
Building to the extent the same affect Tenant’s use and enjoyment of the
Demised Premises and to the extent such maintenance and repairs are not
responsibility of Tenant pursuant to any other provision of this Lease: (i) the
roof, windows, columns and load-bearing walls and other structural elements; (ii) public
areas of the Building and core restrooms; and (iii) Building HVAC, plumbing
lines (including the lines as distinguished from the plumbing fixtures in the
Demised Premises), electrical, fan

 

24

 

coil units and mechanical
and other systems and elevators, all to the extent such items are outside the
Demised Premises.

 

15.06                     Landlord shall have no
liability to Tenant by reason of any inconvenience, annoyance, interruption or
injury to business arising from Landlord’s making any repairs or changes which
Landlord is required or permitted by this Lease, or required by law, to make in
or to any portion of the Building or the Demised Premises, or in or to the
fixtures, equipment or appurtenances of the Building or the Demised
Premises.  In connection with the
foregoing provisions of this Article 15, Landlord shall use good faith efforts to
minimize any material interference with Tenant’s use or operation of the
Demised Premises (but Landlord shall not be required to arrange for any of such
activities to be conducted during other than normal business hours).

 

15.07                     Tenant will not clean, nor
require, permit, suffer or allow any window in the Demised Premises to be
cleaned, from the outside in violation of Section 202 of the Labor Law or
of the rules of the Board of Standards and Appeals, or of any other board
or body having or asserting jurisdiction.

 

16.                               Electricity.

 

16.01                     (a)  Subject to the
terms of Section (c) of this Article 16, Landlord shall furnish electrical service
to the Demised Premises, for lighting the same and for the operation of normal
office equipment (such as, for example, personal computers and printers,
photocopying machines and telephone facsimile machines) therein.  Except as provided to the contrary in Section (c) of
this Article 16, such electrical service shall be furnished without specific
measurement, on any meter or otherwise, and without additional specific charge
to Tenant, the charge for the furnishing of such electrical service being
included in the fixed rent reserved under this lease, subject to adjustment as hereinafter
provided.  Notwithstanding the foregoing,
however, Tenant agrees that Landlord shall not in any way be liable or
responsible to Tenant for any loss, damage, or expense that Tenant may sustain
or incur if either the quantity or character of electrical service is changed,
is no longer available, or is unsuitable for Tenant’s requirements.  At Landlord’s option, Tenant shall purchase,
at competitive market prices, from Landlord or its agent lamps, starters,
ballasts, or bulbs used in the Demised Premises.

 

(b)                                 Tenant covenants and agrees
that, at all times, its use of electric current shall never exceed the capacity
of the feeders to the Building or the risers or wiring installation
thereof.  In connection therewith, Tenant
expressly agrees that all installations, alterations and additions of and to
the electrical fixtures, appliances, or equipment within the Demised Premises
shall be subject to Landlord’s prior written approval (which approval shall not
by unreasonably withheld), and, if such approval shall be given, rigid conduit
only shall be permitted.  If, in
connection with any request for such approval, Landlord shall, at the sole cost
and expense of Tenant, install any additional feeder(s) that Landlord
shall deem necessary with respect thereto, provided, however, that if Landlord
shall determine, in its sole judgment, that the same will cause permanent
damage or injury to the Building or to the Demised Premises, cause or create a
dangerous or hazardous

 

25

 

condition, entail excessive
or unreasonable alterations, repairs, or expense, or interfere with, or disturb
the other tenants or occupants of the Building, then Landlord shall not be
obligated to make such installation, and Tenant shall not make the
installation, alteration, or addition with respect to which Tenant requested
Landlord’s consent.  In addition to the
installation of such riser or risers, Landlord will also, at sole cost and
expense of Tenant, install all other equipment necessary and proper in
connection therewith, subject to the aforesaid terms and conditions.  All of the aforesaid costs and expenses are
chargeable and collectible as additional rent, and shall be paid by Tenant to
Landlord within twenty (20) business days after rendition of any bill or
statement to Tenant therefor.

 

(c)                                  Provided that it is
physically possible for Tenant to receive electric current in the Demised
Premises directly from the public utility company serving upon the area in
which the Building is located, Landlord may discontinue the aforesaid service
upon the later to occur of (i) thirty (30) days’ notice or (ii) the
period reasonably required for Tenant to obtain direct service without Landlord
being liable to Tenant therefor and without in any way affecting this Lease or
the liability of Tenant hereunder, and the same shall not be deemed to be a
lessening or diminution of services within the meaning of any law, rule, or
regulation now or hereafter enacted, promulgated, or issued.  In the event that Landlord gives such notice
of discontinuance, Landlord shall permit Tenant to receive such service
directly from such public utility company and shall permit Landlord’s wires and
conduits, to the extent available, suitable and safely capable, to be used for
such purpose. Any additional wires, conduits, or other equipment necessary and
proper in connection therewith shall be installed by Landlord, at Landlord’s
sole cost, in accordance with the terms of, and subject to the conditions
contained in, Section (b) of this Article 16.  In
the event that Landlord exercises its rights under this Section (c), then:
(i) Tenant shall contract for such electrical service directly with the
said public utility for all of Tenant’s electric current requirements and (ii) as
of the date upon which Landlord discontinues furnishing electric current to
Tenant, the monthly Rent reserved under this Lease shall be reduced by
$18,547.75 per year ($1,545.65 per month) (the “Initial Electricity Factor”). The Initial Electricity Factor
is hereinafter called the “Electricity Factor.”

 

(d)                                 Notwithstanding anything
contained in this Article 16 which may be deemed to the contrary, if any
tax is imposed upon Landlord by any municipal, state or federal agency or
subdivision with respect to the purchase, sale or resale of electrical energy
furnished or supplied to Tenant hereunder, Tenant covenants and agrees that,
where permitted by law, such taxes shall be passed on to, included in the bill
to and paid by, Tenant to Landlord, as additional rent, as set forth in the
bill, demand or statement furnished to Tenant.

 

17.                               Heat,
Ventilation and Air-Conditioning.

 

17.01                     Landlord, at its expense,
shall maintain and operate the heating, ventilating and air-conditioning
systems (hereinafter called the “Systems”) and shall furnish building
standard heat, ventilating and air-conditioning (hereinafter collectively
called “HVAC service”) in the Demised Premises during “Regular Hours” (that is
generally customary daytime business hours, but not before 8:00 a.m. or
after 6:00 p.m.) of “Business Days”

 

26

 

(which term is used herein
to mean all days except Saturdays, Sundays and days observed by the Federal or
the New York State government or unions whose members are employed at the
Building as holidays) throughout the year. 
Excepted from the foregoing are the air handler, ducts and outlets
therefrom, which shall be maintained and operated by Tenant.  If Tenant shall require air-conditioning
service (as opposed to heating or ventilating services) at any other time
(hereinafter called “After Hours”), Landlord shall furnish such After
Hours air-conditioning service upon reasonable advance notice from Tenant, and
Tenant shall pay Landlord’s then established charges therefor within ten (10) business
days after Landlord’s demand as additional rent.  Landlord shall not charge Tenant for After
Hours heating, After Hours air conditioning service or overtime freight
elevator service (on an hourly basis) more than Landlord charges other
comparably sized tenants for the same service. 
As of the date of this Lease, the charge for After Hours air
conditioning is $265 per hour and the charge for After Hours heat is $165 per
hour, subject to change from time to time without notice.  All requests for After Hours or Non-Business
Days (i.e. weekend) HVAC service or freight elevator service must be made in
writing to the Building Management at least twenty-four (24) hours in advance.

 

17.02                     Use of the Demised Premises,
or any part thereto in a manner exceeding the design conditions thereof
(including occupancy and connected electrical load) for air- conditioning
service in the Demised Premises, or rearrangement by Tenant of partitioning
which interferes with the normal operation of the air-conditioning service in
the Demised Premises, or the use of computer or data processing machines, may
require changes in the Systems servicing the Demised Premises.  Such changes, so occasioned, shall be made by
Tenant, at its expense, as Tenant’s Changes pursuant to Article 13 or at Landlord’s
option, by Landlord at Tenant’s expense. 
Tenant agrees to lower and keep closed the Venetian blinds or other
window coverings in the Demised Premises whenever required for the proper
operation of the air-conditioning service.

 

17.03                     Tenant shall have the right
to use the ducts and other air conditioning installations already existing in
the Demised Premises in the event that Tenant installs separate air
conditioning equipment for its uses.  Any
such equipment and installation is subject to the review and approval of
Landlord.  The cost of installing,
operating and maintaining such air conditioning equipment in the Demised
Premises shall be borne solely by Tenant. 
The installation of separate air conditioning equipment in the Demised
Premises by Tenant for its uses shall not modify Landlord’s obligation to
furnish building standard air conditioning in the Demised Premises during
Regular Hours of Business days at appropriate times during the year pursuant to
the terms and conditions of this Lease.

 

18.                               Landlord’s
Other Services.

 

18.01                     Landlord shall use its
reasonable efforts to: (i) provide public elevator service, passenger and
freight service, by elevators serving the floor on which the Demised Premises
are situated during Regular Hours of Business Days, and (ii) provide at
least one passenger elevator subject to call at all other times, subject to
force majeure and any other matter outside its reasonable control.  Subject to the rights of Landlord and other
tenants to the use of the freight elevator and the Rules and Regulations
of Landlord, Landlord shall

 

27

 

not require any additional
charge for Tenant’s reasonable use of the freight elevator during Regular Hours
of Business Days, provided that such use does not exceed normal and customary
deliveries incidental to the normal day-to-day operation of office space in
buildings comparable to the Building or use occasioned by Tenant’s moving into
the Demised Premises at the commencement of this Lease.  Notwithstanding the foregoing, Tenant, at its
sole cost and expense, may use the freight elevator on a nonexclusive basis at
times other than Regular Hours of Business Days, provided that such use shall
be subject to Landlord’s reasonable rules and at Landlord’s then standard
rates including, without limitation, scheduling requirements applicable to all
tenants of the Building and security requirements.  For the purposes of this Lease, such standard
rate is $110.00 per hour (with a two (2) hour minimum on Business Days and
a four (4) hour minimum After Hours and on Non-Business Days) as of the
date of this Lease, subject to change from time to time and without
notice.  Such use shall be subject to the
availability of appropriate Building security personnel and then existing union
work rules.\

 

18.02                     Landlord, at its expense,
shall cause the Demised Premises to be cleaned. 
A list of the cleaning specifications to be performed by Landlord is
attached hereto as Exhibit D it being understood that Landlord may make
such changes in the aforesaid cleaning specifications as are consistent with
commercial office space in buildings comparable to the Building.  Tenant shall pay to Landlord within twenty
(20) business days after demand the actual and reasonable costs incurred by
Landlord for (a) extra cleaning work performed by Landlord in the Demised
Premises required because of (i) misuse or neglect on the part of Tenant
or its employees, contractors, subtenants, or visitors, (ii) use of
portions of the Demised Premises for special purposes permitted by Landlord
requiring greater or more difficult cleaning work than commercial office areas,
(iii) unusual quantity of interior glass surfaces, or (iv) non-building
standard materials or finishes installed by Tenant or at its request, and (b) removal
from the Demised Premises and the Building of so much of any refuse and rubbish
of Tenant as shall exceed that ordinarily accumulated daily in the routine of
business  office occupancy.  Landlord, 
its cleaning contractor and their employees shall have After Hours
access to the Demised Premises and the use (at Tenant’s expense) of light,
power and water in the Demised Premises as reasonably required for the purpose
of cleaning the Demised Premises in accordance with Landlord’s obligations
hereunder.

 

18.03                     Landlord, at its expense,
shall furnish warm and cold water to the floor on which the Demised Premises
are located, for office, lavatory, shower (if any) and cleaning purposes.  If Tenant uses an amount of water Landlord
reasonably deems excessive, Landlord, at Tenant’s expense, may install meters
to measure Tenant’s consumption of water and/or steam, as the case may be,
Tenant shall pay for the quantities of water and/or steam shown on such meter(s) at
Landlord’s cost thereof, on the rendition of Landlord’s bills therefor.  Landlord may also use an engineer to estimate
Tenant’s consumption of water and/or steam, and bill Tenant therefor pursuant
thereto; provided, however, that if such an engineer shall find normal water
and/or steam consumption on the part of Tenant, then there shall be no charge
to Tenant for water and/or steam consumption.

 

18.04                     Landlord reserves the right,
without any liability to Tenant, to stop service

 

28

 

of any of the heating,
ventilating, air-conditioning, electric, sanitary, water, steam, elevator or
other building Systems serving the Demised Premises or the rendition of any of
the other services required of Landlord under this Lease (“Landlord Services”),
whenever and for so long as may be necessary, by reason of accidents,
emergencies, strikes or the making of repairs or changes which Landlord is
required by this Lease or by law to make or in good faith deems necessary, by
reason of substantial difficulty in securing proper supplies of fuel, steam,
water, electricity, labor or supplies, or by governmental restrictions or by
reason of any other cause beyond Landlord’s reasonable control.  Notwithstanding the foregoing, Landlord shall
use commercially reasonable efforts to mitigate interference with Tenant’s
business.  If as a consequence of any
interruption of Landlord Services lasting for a period in excess of three (3) consecutive
Business Days (hereinafter called the “Threshold Period”), the Demised Premises becomes
untenantable and Tenant, as a consequence, substantially curtails the conduct
of its business, then provided that the cause of such service interruption is
not caused by any negligent or willful act or omission of Tenant or its agents,
representatives, employees, or contractors, beginning upon the day following
the expiration of the Threshold Period and continuing thereafter until the date
on which the Demised Premises are once again tenantable, the Fixed Rent payable
hereunder shall be abated for that portion which is untenantable.

 

19.                               Access,
Changes in Building Facilities, Name.

 

19.01                     Except for the inside
surfaces of all walls, windows and doors bounding the Demised Premises, all of
the Building, including exterior Building walls, core corridor walls and doors
and any core corridor entrance, any terraces or roofs adjacent to the Demised
Premises, and any space in or adjacent to the Demised Premises used for shafts,
stacks, pipes, conduits, fan rooms, ducts, electric or other utilities, sinks
or other Building facilities, and the use thereof, as well as access thereto
through the Demised Premises for the purposes of operation, maintenance,
decoration and repair, are reserved to Landlord.

 

19.02                     Landlord reserves the right
to make such changes, alterations, additions, improvements, repairs or
replacements in or to the Building (including the Demised Premises) and the
fixtures and equipment thereof, as well as in or to the street entrances,
halls, passages, elevators, escalators, stairways and other parts thereof, and
to erect, maintain and use pipes, ducts and conduits in and through the Demised
Premises; all as Landlord may deem necessary or desirable; provided, however,
that Landlord shall use commercially reasonable efforts to minimize obstruction
of the means of access to the Demised Premises and interference with the use of
the Demised Premises (without incurring any overtime or premium charges or
fees).  Any new pipes, ducts and conduits
installed by Landlord in the Demised Premises which do not replace existing
pipes, ducts or conduits which are exposed shall be enclosed and shall not
materially diminish the floor area of the Demised Premises.  Nothing contained in this Article 19
shall relieve Tenant of any duty, obligation or liability of Tenant with
respect to making any repair, replacement or improvement or complying with any
law, order or requirement of any governmental or other authority.

 

29

 

19.03                     Landlord reserves the right
to name the Building and to change the name or address of the Building at any
time and from time to time.  Neither this
Lease nor any use by Tenant shall give Tenant any easement or other right in or
to the use, if any, of any door, passage, concourse or plaza connecting the
Building with any subway or any other building or to any public conveniences,
and the use of such doors, passages, concourses, plazas and conveniences may
without notice to Tenant be regulated or discontinued at any time by Landlord.  If at any time any windows of the Demised
Premises are temporarily or permanently darkened or obstructed incident to or
by reason of repairs, replacements, maintenance and/or cleaning in, on, to or
about the Building or any part or parts thereof, or any other reason, or are
temporarily or permanently closed or rendered inoperable, Landlord shall not be
liable for any damage Tenant may sustain thereby, and Tenant shall not be
entitled to any compensation therefor nor abatement of rent nor shall the same
release Tenant from its obligations hereunder nor constitute an eviction.

 

19.04                     Landlord and its respective
agents shall have the right to enter and/or pass through the Demised Premises
or any part thereof, during which time Tenant shall have the right to be
present, at reasonable times during reasonable hours upon reasonable notice
(except no such notice shall be required, and Tenant shall not have the right
to be present, in case of real, perceived, or threatened emergencies) (i) to
examine the Demised Premises and to show the Demised Premises or the Building
to the fee owners, lessors of superior leases, holders of superior mortgages,
or prospective purchasers, mortgagees or lessees of the Building as an
entirety, and (ii) for the purpose of making such repairs or changes or
doing such repainting in or to the Demised Premises or in or to the Building or
its facilities as may be provided for by this Lease or as it may be required to
make by law or in order to repair and maintain the Building or its fixtures or
facilities.  Landlord and its respective
agents shall be allowed to take all materials into and upon the Demised
Premises that may be required for such repairs, changes, repainting and
maintenance, without liability to Tenant, but Landlord and its respective
agents shall endeavor to minimize disruption to Tenant’s use and occupancy of
the Demised Premises in connection therewith (but Landlord shall not be
required to arrange for any of such activities to be conducted during other
than normal business hours).  Landlord
and its respective agents shall also have the right to enter on and/or pass
through the Demised Premises, or any part thereof, at such times as such entry
shall be required by circumstances of emergency affecting the Demised Premises
or the Building.

 

19.05                     During the period of twelve
(12) months prior to the Expiration Date, Landlord may exhibit the Demised
Premises to prospective tenants upon reasonable prior notice to Tenant and in a
manner so as not to unreasonably interfere with the conduct of Tenant’s
business.

 

19.06                     Solely by virtue of a valid
judicial order, Landlord and its agents shall have the right to permit access
to the Demised Premises, whether or not Tenant shall be present, to any
receiver, trustee, assignee for the benefit of creditors, sheriff, marshal or
court officer entitled to, or reasonably purporting to be entitled to, such
access for the purpose of taking possession of, or removing, any property of
Tenant or any other Occupant of the Demised Premises, or for any other lawsuit
purpose, or by any representative of any

 

30

 

Governmental Authority.  Neither anything contained in this Section,
nor any action taken by Landlord under this Section, shall be deemed to
constitute recognition by Landlord that any person other than Tenant has any
right or interest in this Lease or the Demised Premises.

 

19.07       The reasonable exercise by Landlord of any right
reserved to Landlord in this Article shall not constitute an actual or
constructive eviction, in whole or in part, or entitle Tenant to any abatement
or diminution of rent, or relieve Tenant from any of its obligations under this
Lease, or impose any liability upon Landlord, or its agents, or upon any lessor
under any ground or underlying lease, by reason of inconvenience or annoyance
to Tenant, or injury to or interruption of Tenant’s business, or otherwise.

 

20.                               Notice
of Accidents.

 

Tenant shall give notice to
Landlord, promptly after Tenant learns thereof of (i) any accident in or
about the Demised Premises for which Landlord might be liable, (ii) all
fires in the Demised Premises, (iii) all damages to or defects in the
Demised Premises, including the fixtures, equipment and appurtenances thereof
for the repair of which Landlord might be responsible, and (iv) all damage
to or defects in any parts or appurtenances of the Building’s sanitation,
electrical, heating, ventilating, air-conditioning, elevator and other systems
located in or passing through the Demised Premises or any part thereof.

 

21.                               Non-Liability
of Landlord in Certain Circumstances, Exculpation.

 

21.01       Neither Landlord, any superior lessor or any
superior mortgagee, nor any partner, director, officer, shareholder, principal,
agent, servant or employee of Landlord, any superior lessor or any superior
mortgagee (whether disclosed or undisclosed), shall be liable to Tenant for (i) any
loss, injury or damage to Tenant or to any other person, or to its or their
property, irrespective of the cause of such injury, damage or loss, nor shall
the aforesaid parties be liable for any loss of or damage to property of Tenant
or of others entrusted to employees of Landlord; provided, that, except to the
extent of the release of liability and waiver of subrogation provided in Section 11.05
hereof, the foregoing shall not be deemed to relieve Landlord of any liability
to the extent resulting from the gross negligence of Landlord, its agents,
servants or employees in the operation or maintenance of the Demised Premises
or the Building, (ii) any loss, injury or damage described in clause (i) above
caused by other tenants or persons in, upon or about the Building, or caused by
operations in construction of any private, public or quasi-public work or (iii) even
if grossly negligent, consequential damages arising out of any loss or use of
the Demised Premises or any equipment, facilities or other Tenant’s Property
therein.

 

21.02       Neither (i) the performance by Landlord, Tenant
or others of any decorations, repairs, alterations, additions or improvements
in or to the Building or the Demised Premises, including the erection or
operation of any crane, derrick or sidewalk shed, nor (ii) the failure of
Landlord or others to make any such decoration, repairs, alterations, additions
or improvements, nor (iii) any latent defect in the Building or in the
Demised Premises, nor (iv) any inconvenience or annoyance to Tenant or
injury to or

 

31

 

interruption of Tenant’s
business by reason of any of the events or occurrences referred to in the
foregoing subdivisions (i) through (iii), shall constitute an actual or
constructive eviction, in whole or in part, or entitle Tenant to any abatement
or diminution of rent, or relieve Tenant from any of its obligations under this
Lease, or impose any liability upon Landlord, or its agents, or any lessor
under any ground or underlying lease, other than such liability as may be
imposed upon Landlord by law for Landlord’s negligence or the negligence of
Landlord’s agents, servants or employees in the operation or maintenance of the
Building or for the breach by Landlord of any express covenant of this Lease on
Landlord’s part to be performed.

 

21.03       Except as otherwise expressly provided in this
Lease, this Lease and the obligations of Tenant hereunder shall not be
affected, impaired or excused because Landlord is unable to fulfill, or is
delayed in fulfilling, any of its obligations under this Lease by reason of act
of God, strike, other labor trouble, governmental pre-emption or priorities or
other controls in connection with a national or other public emergency or
shortages of fuel, steam, supplies or labor resulting therefrom, or other cause
beyond Landlord’s reasonable control (“Force  Majeure”).  Notwithstanding the foregoing, Landlord will
use all reasonable efforts and due diligence to fulfill its obligations under
this Lease in a manner so as to minimize the interference to, and quiet
enjoyment of, Tenant in its use and occupancy of the Demised Premises.  Notwithstanding the above, if Tenant’s
possession of the Demised Premises is adversely impacted by a Force Majeure for
seven (7) or more consecutive days, Rent shall abate in an amount that is
proportionate to the area of the Demised Premises that remains untenantable,
until such Force Majeure event has terminated and the Demised Premises are
tenantable.

 

21.04       Neither any partner, employee, agent or
representative of Landlord shall have any personal liability for the failure of
Landlord to perform any obligation under this Lease, it being agreed that no
such person or entity shall be named in any legal or other proceeding to
enforce any right or remedy arising out of this Lease and Landlord’s liability
and Tenant’s sole recourse shall be limited to Landlord’s interest in and to
the Land and Building and no other assets of Landlord or of any of its
partners, employees, agents or representatives shall be subject to execution or
levy notwithstanding that Tenant may not be made whole out of such interest in
and to the Land and Building.

 

21.05       Tenant’s liability under this Lease extends to the
acts and omissions of any of its agents, contractors, employees and invitees
and to the acts and omissions of any subtenant of the Demised Premises and any
agent, contractor, employee, or invitee of any subtenant of the Demised
Premises.

 

22.                               Destruction
or Damage.

 

22.01       If the Building or the Demised Premises shall be
partially or totally damaged or destroyed by fire or other casualty (each, a “Casualty”),
then whether or not the damage or destruction shall have resulted from the
fault or neglect of Tenant, or its employees, agents or invitees (and if this
Lease shall not have been terminated as in this Article 22
hereinafter provided) Landlord shall repair the damage and restore and rebuild

 

32

 

the Building and/or the
Demised Premises, at its expense (without limiting the rights of any insurance
company subrogated to Landlord’s rights hereunder pursuant to the terms of any
insurance policy as to which Landlord shall have been unable to obtain a waiver
of subrogation in accordance with Article 11 hereof, to seek
recovery from Tenant, and any rights of Landlord under any other provisions of
this Lease or at law or in equity), with reasonable dispatch after notice to it
of the damage or destruction; provided, however, that Landlord shall not be
required to repair or replace any of Tenant’s Property, or Tenant’s Changes or
any improvements, changes or alterations within the Demised Premises.

 

22.02       If the Building or the Demised Premises shall be
partially damaged or partially destroyed by a Casualty, the rents payable
hereunder shall be abated to the extent that the Demised Premises shall have
been rendered untenantable for the period from the date of such damage or
destruction to the date the earlier of (i) the date the Demised Premises
is made tenantable (provided, that if the Demised Premises would have been
tenantable at an earlier date but for Tenant having failed to cooperate with
Landlord in effecting repairs or restoration or collecting insurance proceeds,
then the Demised Premises shall be deemed to have been made tenantable on such
earlier date and the abatement shall cease) or (ii) the date Tenant or any
subtenant reoccupies a portion of the Demised Premises (in which case the Rent
allocable to such reoccupied portion shall be payable by Tenant from the date
of such occupancy).  If the Demised
Premises shall be totally damaged or destroyed or rendered completely
untenantable on account of a Casualty, the rent shall abate as of the date of
the damage or destruction and until Landlord shall repair, restore and rebuild
the Building and the Demised Premises. 
Should Tenant reoccupy a portion of the Demised Premises during the
period the restoration work is taking place and prior to the date that the same
are made completely tenantable, rents allocable to such portion shall be
payable by Tenant from the date of such occupancy. Landlord’s determination of
the date the Demised Premises  is
tenantable shall be controlling unless Tenant disputes same by notice to
Landlord within ten (10) days after such determination by Landlord, and
pending resolution of such dispute, Tenant shall pay Rent in accordance with
Landlord’s determination. 
Notwithstanding the foregoing, if solely by reason of any act or
omission by Tenant, any subtenant or any of their respective partners,
directors, officers, servants, employees, agents or contractors, Landlord, any
superior lessor or any superior mortgagee shall be unable to collect all of the
insurance proceeds  (including,  without 
limitation,  rent insurance proceeds)  applicable to 
the Casualty, then, without prejudice to any other remedies which may be
available against Tenant, there shall be no abatement of Rent, but the total
amount of such Rent not abated (which would otherwise have been abated) shall
not exceed the amount of uncollected insurance proceeds.  Nothing contained in this Section 22.02
shall relieve Tenant from any liability that may exist as a result of any
Casualty.

 

22.03       If the Demised Premises shall be totally damaged or
destroyed by a Casualty, or if the Building shall be so damaged or destroyed by
a Casualty that, in Landlord’s  or  Tenant’s 
reasonable  opinion,  substantial 
alteration,  demolition  or reconstruction of the Building shall be
required (whether or not the Demised Premises shall have been damaged or
rendered untenantable) then in any such case Landlord or Tenant may terminate
this Lease.

 

33

 

22.04       No damages, compensation or claim shall be payable
by Landlord for inconvenience, loss of business or annoyance arising from any
repair or restoration of any portion of the Demised Premises or of the Building
pursuant to this Article 22. 
Landlord shall endeavor to effect such repair or restoration with all
reasonable expedition, subject to delays due to adjustments of insurance
claims, labor troubles and causes beyond Landlord’s control, and in such manner
as not unreasonably to interfere with Tenant’s use and occupancy.

 

22.05       Landlord will not carry separate insurance of any
kind on Tenant’s Property and on Tenant’s Changes or any other improvements,
and Landlord shall not be obligated to repair any damage thereto or replace the
same.  Tenant shall look solely to its
insurance for recovery of any damage to or loss of Tenant’s Property, Tenant’s
Changes or any other improvements. 
Tenant shall promptly notify Landlord of any Casualty in the Demised
Premises.

 

22.06       The provisions of this Article 22
shall be considered an express agreement governing any cause of damage or
destruction of the Demised Premises by fire or other casualty, and Section 227
of the Real Property Law of the State of New York, providing for such a
contingency in the absence of an express agreement, and any other law of like
import, now or hereafter in force, shall have no application in such case.

 

23.                               Condemnation.

 

23.01       In the event that the whole of the Demised Premises
shall be lawfully condemned or taken in any manner for any public or
quasi-public use, this Lease and the term and estate hereby granted shall forthwith
cease and terminate as of the date of vesting of title.  In the event that only a part of the Demised
Premises shall be so condemned or taken, then, effective as of the date of
vesting of title, Rent shall be abated in an amount proportionate to the area
of the Demised Premises so condemned or taken. 
In the event that only a part of the Building shall be so condemned or
taken, then (a) Landlord (whether or not the Demised Premises be affected)
may, at Landlord’s option, terminate this Lease and the term and estate hereby
granted as of the date of such vesting of title by notifying Tenant in writing
of such termination within forty-five (45) days following the date on which
Landlord shall have received notice of vesting of title, or (b) if such
condemnation or taking shall be of more than twenty-five percent (25%) of the
Demised Premises, Tenant may, at Tenant’s option, by delivery of notice in
writing to Landlord within thirty (30) days following the date on which Tenant
shall have received notice of vesting of title, terminate this Lease and the
term and estate hereby granted as of the date of vesting of title, or if
neither Landlord nor Tenant elects to terminate this Lease, as aforesaid, this
Lease shall be and remain unaffected by such condemnation or taking, except
that the Rent payable hereunder shall be abated to the extent herein before
provided in this Article 23. 
In the event that only a part of the Demised Premises shall be so
condemned or taken and this Lease and the term and estate hereby granted with
respect to the remaining portion of the Demised Premises are not terminated as
herein before provided, Landlord will, with reasonable diligence and at its
expense, restore the remaining portion of the Demised

 

34

 

Premises as nearly as
practicable to the same condition as it was in prior to such condemnation or
taking, excluding Tenant’s Changes and other improvements, changes and
alterations to the Demised Premises.

 

23.02       In the event of its termination in any of the cases
hereinbefore provided, this Lease and the term and estate hereby granted shall
expire as of the date of such termination with the same effect as if that were
the Expiration Date, and the Rent payable hereunder shall be apportioned as of
such date.

 

23.03       In the event of any condemnation or taking
hereinbefore mentioned of all or a part of the Building, Landlord shall be
entitled to receive the entire award in the condemnation proceeding, including
any award made for the value of the estate vested by this Lease in Tenant, and
Tenant hereby expressly assigns to Landlord any and all right, title and
interest of Tenant now or hereafter arising in or to any such award or any part
thereof, and Tenant shall be entitled to receive no part of such award.  Nothing in this Section 23.03
shall be construed to prevent Tenant from making a claim in a separate
proceeding for relocation assistance including but not limited to moving
expenses and the cost of any trade fixtures taken in any such condemnation or
taking, provided same does not reduce Landlord’s award in its proceeding.

 

23.04       In the event any part of the Demised Premises be
taken to effect compliance with any law or requirement of public authority
other than in the manner hereinabove provided in this Article 23,
then (i) if such compliance is the obligation of Tenant under this Lease,
Tenant shall not be entitled to any diminution or abatement of rent or other
compensation from Landlord therefor, but (ii) if such compliance is the
obligation of Landlord under this Lease, the Rent hereunder shall be reduced
and adjusted in the same manner as is provided in Section 23.01
according to the reduction in rentable area of the Demised Premises from such
taking.

 

23.05       Landlord shall notify Tenant of any condemnation
proceeding of which it has received written notice involving the Demised
Premises or involving substantially all of the common areas for the Building.

 

24.                               Surrender.

 

24.01       On the Expiration Date, or upon any earlier
termination of this Lease, or upon any reentry by Landlord upon the Demised
Premises, Tenant shall quit and surrender the Demised Premises to Landlord in
good order, condition and repair, except for ordinary wear and tear and such
damage or destruction as Landlord is required to repair or restore under this
Lease, and Tenant shall remove all of Tenant’s Property therefrom except as
otherwise expressly provided in this Lease. 
Landlord shall have the right to retain any property and effects which
shall remain in the Demised Premises seven (7) days after the expiration
or sooner termination of the term, and any net proceeds from the sale thereof,
without waiving Landlord’s right with respect to any default by Tenant under
the foregoing provisions of this Section. 
Tenant expressly waives, for itself and for any person claiming through
or under Tenant, any rights which Tenant or any such person may have under the

 

35

 

provisions of Section 2201
of the New York Civil Practice Law and Rules and of any successor law of
like import then in force, in connection with any holdover summary proceedings
which Landlord may institute to enforce the foregoing provisions of this
Article.  If said date upon which the
term shall expire and come to an end shall fall on a Sunday or holiday, then
Tenant’s obligations under the first sentence of this Section shall be
performed on or prior to the Saturday or business day immediately preceding
such Sunday or holiday.  Tenant’s
obligations under this Section shall survive the expiration or sooner
termination of the term of this Lease,

 

24.02       Tenant agrees it shall indemnify, defend with
counsel selected by Landlord, and save Landlord harmless against all costs,
claims, loss or liability resulting from delay by Tenant in surrendering the
Demised Premises, including, without limitation, any awards to any succeeding
tenant founded on such delay.  The
parties recognize and agree that the damage to Landlord resulting from any
failure by Tenant to surrender the Demised Premises on the Expiration Date or
upon any earlier termination of this Lease will be material, will exceed the
amount of monthly rent theretofore payable hereunder, and will be impossible of
accurate measurement.  Tenant therefore
agrees that if possession of the Demised Premises is not surrendered to
Landlord within seven (7) days after the date of the expiration or sooner
termination of the term of this Lease, then (without limitation of Landlord’s
right to claim and collect consequential damages caused by Tenant’s holdover)
Tenant will pay Landlord promptly upon demand as a liquidated use and occupancy
charge, without set-off or deduction, for each month and for each portion of
any month during which Tenant holds over in the Demised Premises after expiration
or termination of the term of this Lease, a sum equal to one and one-half (1.5)
times the average Rent which was payable per month under this Lease during the
last six months of the term of its Lease. 
Such holding over shall not be deemed to extend the term or renew this
Lease.  Notwithstanding the foregoing,
the acceptance of any rent paid by Tenant pursuant to this Section 24.02
shall not preclude Landlord from commencing and prosecuting a holdover or
summary eviction proceeding.

 

25.                               Conditions
of Limitation.

 

25.01       This Lease and the term and estate hereby granted
are subject to the limitation that whenever Tenant shall make an assignment of
the property of Tenant for the benefit of creditors, or shall file a voluntary
petition under any bankruptcy or insolvency law or any involuntary petition
alleging an act of bankruptcy or insolvency shall be filed against Tenant under
any bankruptcy or insolvency law, or whenever a petition shall be filed by or
against Tenant under the reorganization provisions of the United States
Bankruptcy Code or under the provisions of any law of like import, or whenever
a petition shall be filed by Tenant under the arrangement provisions of the
United States Bankruptcy Code or under the provisions of any law of like import,
or whenever a permanent receiver of Tenant or of or for the property of Tenant
shall be appointed, then, Landlord may (a), at any time after receipt of notice
of the occurrence of any such event, or (b) if such event occurs without
the acquiescence of Tenant, at any time after the event continues for ninety
(90) days, give Tenant a notice of intention to end the term of this Lease at
the expiration of thirty (30) days from the date of service of such notice of
intention, and upon the

 

36

 

expiration of said thirty
(30) day period this Lease and term and estate hereby granted, whether or not
the term shall theretofore have commenced, shall terminate with the same effect
as if that day were the Expiration Date, but Tenant shall remain liable for
damages as provided in Article 27, For purposes of this Section 25.01,
the term “Tenant” shall include any guarantor of this Lease.

 

25.02       This Lease and the term and estate hereby granted
are subject to further limitation as follows:

 

(a)           whenever Tenant shall default in the payment of
Fixed Rent or any other charge payable by Tenant to Landlord, on any day upon
which the same ought to be paid, or

 

(b)           whenever Tenant shall default in the keeping,
observance  or performance of any
covenant or agreement (except as provided in Sections 25.02(a),
(c), (d), (e), (f), (g), (h), or (i)) or do or permit anything to be done,
whether by action or inaction, contrary to any of Tenant’s obligations
hereunder, and if such situation shall continue and shall not be remedied by
Tenant within thirty (30) days after Landlord shall have given to Tenant a
notice specifying the same, or, in the case of a happening or default which
cannot with due diligence be cured within a period of thirty (30) days and the
continuance of which for the period required for cure will not subject Landlord
to the risk of criminal liability or termination of any superior lease or
foreclosure of any superior mortgage, if Tenant shall not, (i) within said
thirty (30) day period advise Landlord of Tenant’s intention to duly institute
all steps necessary to remedy such situation, (ii) duly institute within
said thirty (30) day period, and thereafter diligently and continuously
prosecute to completion all steps necessary to remedy the same and (iii) complete
such remedy within such time after the date of the giving of said notice by
Landlord as shall reasonably be necessary, (but in no instance shall such
remedy be completed later than one hundred-twenty (120) days from the giving of
notice by Landlord), or

 

(c)           whenever any event shall occur or any contingency
shall arise whereby this Lease or the estate hereby granted or the unexpired
balance of the term hereof would, by operation of law or otherwise, devolve
upon or pass to any person, firm or corporation other than Tenant, except as
expressly permitted by Article 36, or

 

(d)           whenever Tenant shall vacate, desert or abandon the
Demised Premises (unless as a result of a casualty), or

 

(e)           if Tenant or any Affiliate defaults under any other
lease with Landlord or any Affiliate of Landlord, which default shall continue
beyond any applicable grace period provided under such other Lease, or

 

(f)            if Tenant shall fail to take possession of the
Demised Premises within thirty (30) days after the Commencement Date, or

 

37

 

(g)           if (i) Tenant shall commence any case,
proceeding or other action (A) under any existing or future law of any
jurisdiction, domestic or foreign, relating to bankruptcy, insolvency,
reorganization or relief of debtors, seeking to have an order for relief
entered with respect to Tenant, or seeking to adjudicate Tenant a bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment, liquidation, dissolution,
composition or other relief with respect to Tenant or Tenant’s debts, or (B) seeking
appointment or a receiver, trustee, custodian or other similar official for
Tenant or for all or any substantial part of Tenant’s property; or (ii) there
shall be commenced against Tenant any case, proceeding or other action of a
nature referred to in clause (i) above or seeking issuance of a warrant of
attachment, execution, distraint or similar process against all or any
substantial part of Tenant’s property, which case, proceeding or other action (x) results
in the entry of an order for relief or (y) remains undismissed,
undischarged or unbonded for a period of ninety (90) days; or (iv) Tenant
shall take any action consenting to or approving of any of the acts set forth
in clause (i) or (ii) above; or (v) Tenant shall generally not,
or shall not be unable to, pay Tenant’s debts as they become due or shall admit
in writing Tenant’s inability to pay Tenant’s debts;

 

(h)           if Tenant is a corporation and shall cease to exist
as a corporation in good standing in the state of its incorporation, or if
Tenant is a partnership or other entity and Tenant shall be dissolved or
otherwise liquidated; or

 

(i)            if a default of the kind set forth in Section 25.02(a) or (b) shall occur and have
been cured, and if a similar default shall occur more than once within the next
365 days, whether or not such similar defaults are cured within the applicable
grace period; 

 

then in any of said cases as
set forth in the foregoing subsections (a), (b), (c), (d), (e), (f), (g), (h) and
(i), Landlord may give Tenant a notice of intention to end the term of this
Lease at the expiration often (10) business days from the date of the
service of such notice of intention, and upon the expiration often (10) business
days, this Lease and the term and estate hereby granted, whether or not the
term shall theretofore have commenced, shall terminate with the same effect as
if that day were the Expiration Date, but Tenant shall remain liable for
damages as provided in Article 27.

 

26.                               Re-entry
by Landlord.

 

26.01       If Tenant shall default in the payment of any
installment of Rent on any date upon which the same ought to be paid, and if
such default shall continue for ten (10) business days after Landlord
shall have given to Tenant a notice specifying such default, or if this Lease
shall expire as in Article 25, provided, Landlord or
Landlord’s agents and employees may at any time thereafter re-enter the Demised
Premises, or any part thereof, either by summary dispossess proceedings or by
any suitable action or proceeding at law, without being liable to indictment,
prosecution or damages therefrom, to the end that Landlord may have, hold and
enjoy the Demised Premises again as and of its first estate and interest therein.  The word “re-enter”, as herein used, is not
restricted to its technical legal meaning. 
In the event of any termination of this Lease under the provisions of Article 25.  or if Landlord shall reenter the Demised
Premises under the provisions of this

 

38

 

Article 26
or in the event of the termination of this Lease, or of reentry, by or under
any summary dispossess or other proceedings or action or any provision of law
by reason of default hereunder on the part of Tenant, Tenant shall thereupon
pay to Landlord the Rent payable by Tenant to Landlord up to the time of such
termination of this Lease, or of such recovery of possession of the Demised
Premises by Landlord, as the case may be, and shall also pay to Landlord
damages as provided in Article 27.

 

26.02       In the event of a breach or threatened breach by
Tenant of any of its obligations under this Lease, Landlord shall also have the
right of injunction.  The special
remedies to which Landlord may resort hereunder are cumulative and are not
intended to be exclusive of any other remedies or means of redress to which
Landlord may lawfully be entitled at any time and Landlord may invoke any
remedy allowed at law or in equity as if specific remedies were not provided
for herein.

 

26.03       If this Lease shall terminate under the provisions
of Article 25, or if Landlord shall reenter the Demised
Premises under the provisions of this Article 26, or in the
event of the termination of this Lease, or of reentry, by or under any summary
dispossess or other proceeding or action or any provision of law by reason of
default hereunder on the part of Tenant, Landlord shall be entitled to retain
all moneys, if any, paid by Tenant to Landlord, whether as advance rent,
security or otherwise, but such moneys shall be credited by Landlord against
any Rent due from Tenant at the time of such termination or reentry or, at
Landlord’s option, against any damages payable “by Tenant under Article 27
or pursuant to law.

 

27.                               Damages.

 

27.01       If this Lease is terminated under the provisions of Article 25,
or if Landlord shall reenter the Demised Premises under the provisions of Article 26,
or in the event of the termination of this Lease, or of reentry, by or under
any summary dispossess or other proceeding or action or any provision of law,
Tenant shall pay to Landlord as damages, at the election of Landlord, either

 

(a)           a sum which at the time of such termination of this
Lease or at the time such reentry by Landlord, as the case may be, represents
the then value of the excess if any, of

 

(i)            the aggregate of the Rent
payable hereunder which would have been payable by Tenant (conclusively
presuming the additional rent to be the same as was payable for the year
immediately preceding such termination) for the period commencing with such
earlier termination of this Lease or the date of any such reentry, as the case
may be, and ending with the Expiration Date, had this Lease not so terminated
or had Landlord not so re-entered the Demised Premises, over

 

(ii)           the aggregate fair and
reasonable rental value of the Demised Premises for the same period, or

 

39

 

(b)           sums equal to the Rent (as above presumed) payable
hereunder which would have been payable by Tenant had this Lease not so
terminated, or had Landlord not so re-entered the Demised Premises, payable
upon the due dates therefor specified herein following such termination or such
reentry and until the Expiration Date; provided, however, that if Landlord
shall re-let the Demised Premises during said period, Landlord shall credit
Tenant with the net rents received by Landlord from such re-letting, such net
rents to be determined by first deducting from the gross rents, as and when
received by Landlord from such re-letting, the expenses incurred or paid by
Landlord in terminating this Lease or in re-entering the Demised Premises and
in securing possession thereof as well as the expenses of re-letting, including
altering and preparing the Demised Premises for new tenants, brokers’
commissions, legal expenses, attorneys’ fees, advertising, and all other
expenses properly chargeable against the Demised Premises and the rental
thereof; it being understood that any such re-letting may be for a period
shorter or longer than the remaining term of this Lease; but in no event shall
Tenant be entitled to receive any excess of such net rents over the sums
payable by Tenant to Landlord hereunder, nor shall Tenant be entitled in any
suit for the collection of damages pursuant to this subsection to a credit in
respect of any net rents from a re-letting, except to the extent that such net
rents are actually received by Landlord. 
If the Demised Premises or any part thereof should be re-let in
combination with other space, then proper apportionment on a square foot basis
shall be made of the rent received from such re-letting and of the expenses of
re-letting.

 

27.02       If the Demised Premises or any part thereof be
re-let by Landlord for the unexpired portion of the term of this Lease, or any
part thereof before presentation of proof of such damages to any court,
commission or tribunal, the amount of rent reserved upon such re-letting shall,
prima facie, be the fair and reasonable rental value for the Demised Premises,
or part thereof so re-let during the term of the re-letting.

 

27.03       A suit or suits for the recovery of such damages, or
any installments thereof, may be brought by Landlord from time to time at its
election, and nothing contained herein shall be deemed to require Landlord to
postpone suit until the date when the term of this Lease would have expired if
it had not been so terminated under the provisions of Article 25,
or under any provision of law, or had Landlord not re-entered the Demised
Premises. Nothing herein contained shall be construed to limit or prejudice the
right of Landlord to prove for and obtain as liquidated damages, and not as a
penalty, by reason of the termination of this Lease or re-entry of the Demised
Premises for the default of Tenant under this Lease, an amount equal to the
maximum allowed by any statute or rule of law in effect at the time when,
and governing the proceedings in which, such damages are to be proved whether
or not such amount be greater, equal to, or less than any of the sums referred
to in Section 27.01.

 

27.04       Landlord may re-let the Demised Premises or any part
or parts thereof; either in the name of Landlord or otherwise, for a term or
terms which may at Landlord’s option be less than or exceed the period which
would otherwise have constituted the

 

40

 

balance of the term of this
Lease and may grant concessions or free rent or charge a higher rental than
that in this Lease.

 

27.05       Landlord, in putting the Demised Premises in good order
or preparing the same for re-rental, may, at its option, make such alterations,
repairs, replacements, and/or decorations in the Demised Premises as Landlord,
in its sole judgment, considers in good faith advisable and necessary for the
purpose of re-letting the Demised Premises, and the making of such alterations,
repairs, replacements and/or decorations shall not operate or be construed to
release Tenant from liability hereunder as aforesaid.

 

27.06       Landlord shall in no event be liable in any way for
failure to re-let the Demised Premises or, in the event that the Demised
Premises are re-let, for failure to collect the rent thereof under such
re-letting.  The failure of Landlord to
re-let the Demised Premises or any part or parts thereof shall not release or
affect Tenant’s liability for damages.

 

28.                               Waivers.

 

28.01       Tenant, for Tenant, and on behalf of any and all
persons claiming through or under Tenant, including creditors of all kinds,
does hereby waive and surrender all right and privilege which they or any of
them might have under or by reason of any present or future law, to redeem the
Premises or to have a continuance of this Lease for the term hereby demised
after being dispossessed or ejected therefrom by process of law or under the
terms of ease or after the termination of this Lease as herein provided.

 

28.02       In the event that Tenant is in arrears in payment of
Fixed Rent or additional rent hereunder beyond any applicable grace or cure
period, Tenant waives Tenant’s right, if any, to designate the item against
which any payments made by Tenant are to be credited, and Tenant agrees that
Landlord may apply any payments made by Tenant to any items as Landlord sees
fit, irrespective of and notwithstanding any designation or request by Tenant
as to the item against which such payments shall be credited.  Landlord and Tenant hereby waive trial by
jury in any action, proceeding or counterclaim brought by either against the
other on any matter whatsoever arising out of or in any way connected with this
Lease, the relationship of landlord and tenant, Tenant’s use or occupancy of
the Demised Premises, including any claim of injury or damage, or any emergency
or other statutory remedy with respect thereto. 
If Landlord commences any summary proceeding for possession, Tenant
hereby waives the right to and agrees that Tenant shall not interpose any
counterclaim of whatever nature or description in any such proceeding, except
compulsory counterclaims which Tenant would be deemed to have waived if not
asserted in such a proceeding.

 

28.03       The provisions of Articles 17 and
18 shall be considered express agreements governing the services to be
furnished by Landlord, and Tenant agrees that any laws and/or requirements of
public authorities, now or hereafter in force, shall have no application in
connection with any enlargement of Landlord’s obligations with respect to such
services.

 

41

 

29.                               No
Other Waivers or Modifications.

 

29.01       The failure of either party to insist in any one or
more instances upon the strict performance of any one or more of the
obligations of this Lease, or to exercise any election herein contained, shall
not be construed as a waiver or relinquishment for the future of the
performance of such one or more obligations of this Lease or of the right to
exercise such election, but the same shall continue and remain in full force
and effect with respect to any subsequent breach, act or omission.  No executory agreement hereafter made between
Landlord and Tenant shall be effective to change, modify, waive, release,
discharge, terminate or effect an abandonment of this Lease, in whole or in
part, unless such executory agreement is in writing, refers expressly to this
Lease and is signed by the party against whom enforcement of the change,
modification, waiver, release, discharge or termination or effectuation of the
abandonment is sought.

 

29.02       The
following specific provisions of this Section 29.02 shall
not be deemed to limit the generality of Section 29.01:

 

(a)           No agreement to accept a surrender of all or any
part of the Demised Premises shall be valid unless in writing and signed by
Landlord.  The delivery of keys to an employee
of Landlord or one of its agents shall not operate as a termination of this
Lease or a surrender of the Demised Premises. 
If Tenant shall at any time request Landlord to sublet the Demised
Premises for Tenant’s account, Landlord or its agent is authorized to receive
said keys for such purpose without releasing Tenant from any of its obligations
under this Lease, and Tenant hereby releases Landlord from any liability for
loss or damage to any of Tenant’s Property in connection with such subletting.

 

(b)           The receipt by Landlord of rent with knowledge of
breach of any obligation of this Lease shall not be deemed a waiver of such
breach.

 

(c)           No payment by Tenant or receipt by Landlord of a
lesser amount than the correct Rent due hereunder shall be deemed to be other
than a payment on account, nor shall any endorsement or statement on any check
or any letter accompanying any check or payment be deemed an accord and
satisfaction, and Landlord may accept such check or payment without prejudice
to Landlord’s right to recover the balance or pursue any other remedy in this
Lease or at law provided.

 

30.                               Curing
Tenant’s Defaults, Additional Rent.

 

30.01       If Tenant shall default in the performance of any of
Tenant’s obligations under this Lease, Landlord, without thereby waiving such
default, may (but shall not be obligated to) perform the same for the account
and at the expense of Tenant, without notice, in a case of emergency, and in
any other case, only if such default continues after the expiration of the applicable
grace period provided in Section 25.02 or elsewhere in this
Lease for cure of such default.

 

42

 

30.02       Bills for reasonable expenses incurred by Landlord
in connection with any such performance by it for the account of Tenant, and
bills for all reasonable costs, expenses and disbursements of every kind and
nature whatsoever, including reasonable counsel fees, involved in collecting or
endeavoring to collect the Rent or any part thereof or enforcing or endeavoring
to enforce any rights against Tenant, under or in connection with this Lease,
or pursuant to law, including any such cost, expense and disbursement involved
in instituting and prosecuting summary proceedings or in defending any action
unsuccessfully brought by Tenant, as well as bills for any property, material,
labor or services provided, furnished or rendered, by Landlord or at its
instance to Tenant, may be sent by Landlord to Tenant monthly, or immediately,
at Landlord’s option, and shall be due and payable in accordance with the terms
of such bills.  If Tenant’s lease term
shall have expired at the time of making of such expenditures or incurring of
such obligations, such sums shall be recoverable by Landlord as damages.

 

31.                               Parties
Bound.

 

31.01       The obligations of this Lease shall bind and benefit
the successors and assigns of the parties with the same effect as if mentioned
in each instance where a party is named or referred to, except that no
violation of the provisions of Article 36 shall operate to
vest any rights in any successor or assignee of Tenant and that the provisions
of this Article 31 shall not be construed as modifying the
conditions of limitation contained in Article 25.  However, the obligations of Landlord under
this Lease shall not be binding upon Landlord herein named with respect to any
period subsequent to the transfer of its interest in the Building as owner or
lessee thereof together with Tenant’s security that has not previously been
applied or retained and in the event of such transfer said obligations shall
thereafter be binding upon each transferee of the interest of Landlord herein
named as such owner or lessee of the Building, but only with respect to the
period ending with a subsequent transfer within the meaning of this Article 31.

 

31.02       Tenant may look only to Landlord’s estate and
property in the Building for the satisfaction of Tenant’s remedies or the
collection of a judgment (or other judicial process) or arbitration award
requiring the payment of money by Landlord hereunder, and no other property or
assets of such Landlord or any partner or member of Landlord, disclosed or
undisclosed, shall be subject to levy, 
execution or other enforcement procedure for the satisfaction of Tenant’s
remedies under or with respect to this Lease, the relationship of landlord and
tenant hereunder or under law or Tenant’s use or occupancy of the Demised
Premises.

 

32.                               Notices.

 

All notices and other
communications (other than rent bills) required to be given under this Lease
shall be in writing, signed by the party serving the notice or other
communication, and sent by registered or certified United States mail, return
receipt requested, or reputable overnight courier service, to the address of
the party to whom given as set forth below or to such other address as either
party may designate in writing in the

 

43

 

manner herein
prescribed.  All such notices and other
communication shall be deemed effective upon receipt.  Addresses to which notices shall be sent are,
as follows:

 

	
  To Landlord:

  
	
   

  
	
  205-215 Lexington Avenue Associates LLC

  
	
  c/o Somerset Management Ltd.

  
	
  205 Lexington Avenue

  
	
  New York, New York 10016

  
	
   

  
	
  with a copy to:

  
	
   

  
	
  Colliers ABR, Inc.

  
	
  40 East 52nd Street

  
	
  New York, New York 10022

  
	
  Attention: Ms. Wendy Miller

  
	
   

  
	
  To Tenant:

  
	
   

  
	
  Tangoe, Inc.

  
	
  35 Executive Boulevard

  
	
  Orange, CT 06477

  
	
  Attention: Gary Martino

  
	
   

  
	
  with a copy to:

  
	
   

  
	
  Tangoe, Inc.

  
	
  205 Lexington Avenue, Suite 1000

  
	
  New York, NY 10016

  
	
  Attention: George Germano

  

 

33.                               Estoppel
Certificate, Memorandum.

 

33.01       Each party agrees, at any time and from time to
time, as requested by the other party, upon not less than ten (10) business
days’ prior notice to execute and deliver to the other a statement certifying
that this Lease is unmodified and in full force and effect (or if there have
been modifications that the same is in full force and effect as modified and
stating the modifications) certifying the dates to which the Rent have been
paid, and stating whether or not, to the best knowledge of the signer, the
other party is in default in performance of any of its obligations under this
Lease, and, if so, specifying each such default of which the signer may have
knowledge, it being intended that any such statement delivered pursuant hereto
may be relied upon by others with whom the party requesting such certificate
may be dealing.

 

33.02       Tenant shall not record either this Lease or a
memorandum thereof and any attempt so to record shall be deemed a default
hereunder.

 

44

 

34.                               Directory
Listings.

 

34.01       Landlord shall provide Tenant with up to four (4) lines
in the Building’s directory (which may, at Landlord’s sole discretion, be an
electronic directory) which shall be located in the lobby of the Building and
shall, at Tenant’s request, include the name of Tenant (and Tenant’s employees
who may work in the Building or other permitted subtenant or designee) in the
listing, provided the size and location of the name so listed and the location
of the directory shall be at the sole discretion of the Landlord.  The cost of adding and deleting names on such
directory after initial installation of such names in the Building’s directory
shall be paid by Tenant, in advance, at the sum of Landlord’s then standard
charge per change per line.  The listing
of any name or logo other than that of Tenant on the Building’s directory or
otherwise, shall never operate to vest in any such party (or parties) an
interest in this Lease or in the Premises, nor shall it be deemed to be the
consent of Landlord to any assignment or transfer of this Lease, or any other
sublease of the Premises, or to the use and occupancy thereof by others.  Subject to Landlord’s approval and prior
written consent, which consent shall not be unreasonably withheld or delayed,
Tenant may install a sign in the hallway next to the front door of the Demised
Premises.

 

35.                               No
Other Representations, Construction, Governing Law.

 

35.01       Tenant expressly acknowledges and agrees that
Landlord has not made and is not making, and Tenant, in executing and
delivering this Lease, is not relying upon, any warranties, representations,
promises or statements, except to the extent that the same are expressly set
forth in this Lease or in any other written agreement which may be made between
the parties concurrently with the execution and delivery of this Lease and
shall expressly refer to this Lease. 
This Lease and said other written agreement(s) made concurrently
herewith, if any, are hereinafter referred to as the “Lease Documents.”  It is understood and agreed that all
understandings and agreements heretofore had between the parties are merged in
the Lease Documents, which alone fully and completely express their agreement,
and that the same are entered into after full investigation, neither party
relying upon any statement or representation not embodied in the Lease
Documents, made by the other.  Except as
specifically set forth herein, neither Landlord, Landlord’s agents, employees,
representatives, managing agent, legal counsel or broker has made any
representation or other statement upon which Tenant is relying concerning any
of the following: (i) the area of the Demised Premises or the Building, (ii) the
physical condition of the Demised Premises or the Building, (iii) the
existence or nonexistence of any Hazardous Substance, Hazardous Condition or
Hazardous Activity in or about either the Demised Premises or the Building, (iv) the
state of title to the Real Property, (v) the availability of utilities to
the Demised Premises or the Building, (vi) the existence of any notice of
violation of any law, statute, code or regulation affecting the use, safety,
occupancy of the Demised Premises or the Building or (vii) the use made of
any portion of the Building by any occupant thereof.

 

45

 

35.02       If any of the provisions of this Lease, or the
application thereof to any person or circumstances, shall, to any extent, be
invalid or unenforceable, the remainder of this Lease, or the application of
said provision or provisions to persons or circumstances other than those as to
whom or which it is held invalid or unenforceable, shall not be affected
thereby, and every provision of this Lease shall be valid and enforceable to
the fullest extent permitted by law.

 

35.03       This Lease shall be governed in all respects by the
laws of the State of New York without regard to conflicts of laws principles.

 

35.04       If on the Commencement Date, or any time during the
term, the Rent reserved in this Lease is not fully collectible by reason of any
Federal, State, County or City law, proclamation, order or regulation or
direction of a public officer or body pursuant to law (collectively “Law”),
Tenant agrees to take such steps as Landlord may reasonably request to permit
Landlord to collect the maximum rents which may be legally permissible from
time to time during the continuance of such Law (but not in excess of the
amounts reserved therefor under this Lease). 
Upon the termination of such legal rent restriction, Tenant shall pay to
Landlord, to the extent permitted by Law, an amount equal to (a) the Rent
which would have been paid pursuant to this Lease but for such legal rent
restriction, less (b) the Rent paid by Tenant to Landlord during the
period such Law was in effect.

 

36.                               Assignment,
Mortgaging, Subletting, Etc.

 

36.01       Subject to Section 36.02, neither
this Lease nor the term and estate hereby granted, nor any part hereof or
thereof shall be assigned, mortgaged, pledged, encumbered or otherwise
transferred voluntarily, involuntarily, by operation of law or otherwise, and
neither the Demised Premises, nor any part thereof shall be subleased, be
licensed, be used or occupied by any person or entity other than Tenant or be
encumbered in any manner by reason of any act or omission on the part of
Tenant, and no rents or other sums receivable by Tenant under any sublease of
all or any part of the Demised Premises shall be assigned or otherwise
encumbered, without the prior consent of Landlord.  The dissolution or direct or indirect
transfer of Control (as defined below) of Tenant (however accomplished
including, by way of example, the admission of new partners or members or
withdrawal of existing partners or members, or transfers of interests in
distributions of profits or losses of Tenant, issuance of additional stock,
redemption of stock, stock voting agreement, or change in classes of stock)
shall be deemed an assignment of this Lease regardless of whether the transfer
is made by one or more transactions, or whether one or more persons or entities
hold the controlling interest prior to the transfer or afterwards.  An agreement under which another person or
entity becomes responsible for all or a portion of Tenant’s obligations under
this Lease shall be deemed an assignment of this Lease.  No assignment or other transfer of this Lease
and the term and estate hereby granted, and no subletting of all or any portion
of the Demised Premises shall relieve Tenant of its liability under this Lease
or of the obligation to obtain Landlord’s prior consent to any further
assignment, other transfer or subletting. 
Any attempt to assign this Lease or sublet all or any portion of the
Demised Premises in violation of this Article 36 shall be null
and void.  “Control” (and with
correlative meaning, “controlled by” and “under common control with”) means

 

46

 

ownership or voting control,
directly or indirectly, of 50% or more of the voting stock, partnership
interests or other beneficial ownership interests of the entity in
question.  “Affiliate” means, as
to any designated person or entity, any other person or entity which controls,
is controlled by, or is under common control with, such designated person or
entity.  Notwithstanding anything to
contrary contained herein, Tenant shall have the right, upon prior written
notice to Landlord, to assign the Lease to any affiliate, parent, subsidiary,
divisional entity, partner, joint venture entity or related business entity of
Tenant, or to any entity arising by virtue of merger, consolidation or other
business combination with Tenant or Tenant’s parent entity, or to any purchaser
of all or substantially all of Tenant’s stock or assets, or to any entity under
the ownership or control of Tenant’s parent entity or holding entity
(individually, a “Related Entity” and collectively, “Related Entities”).

 

36.02       (a)           If Tenant desires to assign this Lease or sublet all
of the Demised Premises (other than in accordance with Section 36.01),
Tenant shall give to Landlord notice (a “Transfer Notice”),
thereof specifying (i) in the case of a proposed subletting, the term of
the subletting of such space, (ii) (A) in the case of a proposed
assignment, the consideration Tenant desires to receive or pay for such
assignment or (B) in the case of a proposed subletting, the fixed annual
rent which Tenant desires to receive for such proposed subletting and (iii) the
proposed assignment or sublease commencement date, which notice shall be
accompanied by (w) a copy of the proposed assignment or sublease term
sheet or draft sublease and all related agreements, (x) a statement
setting forth in reasonable detail the identity of the proposed assignee or
subtenant, the nature of its business and its proposed use of the Demised
Premises, (y) current financial information with respect to the proposed
assignee or subtenant, including without limitation, its most recent financial
statement and (z) such other information as Landlord may reasonably
request and Landlord’s consent to the proposed assignment or sublease shall not
be unreasonably withheld, conditioned or delayed, and Landlord shall respond to
Tenant’s Transfer Notice within thirty business (30) days of Landlord’s receipt
of the Transfer Notice, provided that:

 

(i)            In Landlord’s reasonable
judgment the proposed assignee or subtenant will use the Demised Premises in a
manner that (A) is in keeping with the then standards of the Building, (B) is
limited to the use expressly permitted under this Lease, and (C) will not
violate any negative covenant as to use contained in any other Lease of space
in the Building.

 

(ii)           The proposed assignee or
subtenant is, in Landlord’s reasonable judgment, a reputable person or entity
of good character and with sufficient financial worth considering the
responsibility involved.

 

(iii)          Neither the proposed
assignee or sublessee, nor any Affiliate of such assignee or sublessee, is then
an occupant of any part of the Building, unless the Landlord does not have
available at the time of sublet or assignment comparable space of comparable
size.

 

47

 

(iv)          The proposed assignee or
sublessee is not a person with whom Landlord is then negotiating or has within
the prior six (6) months negotiated to lease space in the Building or in
the adjacent building whose address is 215 Lexington Avenue, New York, NY
10016.

 

(v)           The form of the proposed
sublease or assignment shall be reasonably satisfactory to Landlord and shall
comply with the applicable provisions of this Article 36.

 

(vi)          There shall not be more than
one (1) subtenant or assignee of the Demised Premises.

 

(vii)         The aggregate rent to be
paid by the proposed subtenant is not less than the fair rental value of the sublet
space.

 

(viii)        Tenant shall reimburse
Landlord on demand for any reasonable costs incurred by Landlord in connection
with said assignment or sublease, including, without limitation, the costs of
making investigations as to the acceptability of the proposed assignee or
subtenant, and reasonable legal costs incurred in connection with the granting
of any requested consent.

 

(b)           Tenant’s Transfer Notice shall be deemed an offer
from Tenant to Landlord whereby Landlord (or Landlord’s designee) may, upon the
same terms contained in the Transfer Notice, at Landlord’s option, (i) sublease
such space from Tenant or (ii) have this Lease assigned to it or (iii) terminate
this Lease and recapture the Premises. 
Said option may be exercised by Landlord by notice to Tenant within
thirty (30) days after a Tenant’s Transfer Notice, together with all other
information required pursuant to Section 36.02(a), has been
given by Tenant to Landlord.

 

(c)           If Landlord exercises its option under Section 36.02(b)(iii)
to terminate this Lease and recapture the Premises, then this Lease shall
terminate on the proposed assignment or sublease commencement date specified in
the applicable Tenant’s Transfer Notice and all Rent and other charges shall be
paid and apportioned to such date.

 

(d)           If Landlord exercises its option under Section 36.02(b)(ii) to
have this Lease assigned to it (or its designee), then Tenant shall assign this
Lease to Landlord (or Landlord’s designee) by an assignment in form and
substance reasonably satisfactory to Landlord, effective on the proposed
assignment or sublease commencement date specified in the applicable Tenant’s
Transfer Notice and Tenant’s liability under this Lease shall terminate.  Tenant shall not be entitled to consideration
or payment from Landlord (or Landlord’s designee) in connection with any such
assignment.  If the Transfer Notice
provides that Tenant will pay any consideration or grant any concessions in
connection with the proposed assignment, then Tenant shall pay such
consideration and/or grant any such concessions to Landlord (or Landlord’s
designee) on the date Tenant assigns this Lease to Landlord (or Landlord’s
designee).

 

48

 

(e)           If Landlord exercises its option under Section 36.02(b)(iii)
to terminate this Lease with respect to the space covered by a proposed
sublease, then this Lease shall terminate with respect to the Demised Premises
on the effective date of the proposed sublease.

 

(f)            If Landlord exercises its option under Section 36.02(b)(i) to sublet the space Tenant desires to
sublet, such sublease to Landlord or its designee (as subtenant) shall be in
form and substance reasonably satisfactory to Landlord effective on the
proposed assignment or sublease commencement date specified in the applicable
Tenant’s Transfer Notice.  Tenant shall
not be entitled to consideration, except as otherwise provided herein, or
payment from Landlord (or Landlord’s designee) in connection with any such
subletting.  If the Transfer Notice
provides that Tenant will pay any consideration or grant any concessions in
connection with the proposed sublease, then Tenant shall pay such consideration
and/or grant any such concessions to Landlord (or Landlord’s designee) on the
date Tenant assigns this Lease to Landlord (or Landlord’s designee), and:

 

(i)            shall be subject to all of
the terms and conditions of this Lease except such as are irrelevant or
inapplicable, and except as otherwise expressly set forth to the contrary in
this Section 36.02(f);

 

(ii)           shall be upon the same terms
and conditions as those contained in the applicable Transfer Notice and
otherwise on the terms and conditions of this Lease, except such as are
irrelevant or inapplicable and except as otherwise expressly set forth to the
contrary in this Section 36.02(f);

 

(iii)          shall permit the sublessee,
without Tenant’s consent, freely to assign such sublease or any interest
therein or to sublet all of the space covered by such sublease and to make any
and all alterations and improvements in the space covered by such sublease;

 

(iv)          shall provide that any
assignee or further subtenant of Landlord or its designee may, at the election
of Landlord, make alterations, decorations and installations in such space or
any part thereof, any or all of which may be removed, in whole or in part, by
such assignee or subtenant, at its option, prior to or upon the expiration or
other termination of such sublease, provided that such assignee or subtenant,
at its expense, shall repair any damage caused by such removal; Tenant shall
not be responsible in any way what so ever for any damage, alterations,
decorations, or installations made by an assignee, or further subtenant of
Landlord or its designee, nor shall Tenant be responsible for the removal of
any such alterations, decorations or installations and

 

(v)           shall provide that (1) the
parties to such sublease expressly negate any intention that any estate created
under such sublease be merged with any other estate held by either of said
parties, (2) any assignment or subletting by Landlord or its designee (as
the subtenant) may be for any purpose or purposes that Landlord shall deem
appropriate, and (3) at the expiration of the term of such sublease,
Tenant shall accept the space covered by such

 

49

 

sublease in its then existing condition,
subject to the obligations of the sublessee to make such repairs thereto as may
be necessary to preserve such space in good order and condition.

 

(g)           If Landlord consents to a proposed assignment or
sublease and Tenant fails to execute and deliver the assignment or sublease to
which Landlord consented within thirty (30) days after the giving of such
consent, then Tenant shall again comply with this Article 36
before assigning this Lease or subletting all or part of the Demised Premises.

 

36.03       (a)           If this Lease is assigned by Tenant, whether or not
in violation of this Lease, Landlord may collect Rent from the assignee.  If the Demised Premises or any part thereof
are sublet or occupied by anybody other than Tenant, whether or not in
violation of this Lease, Landlord may, after default by Tenant, and expiration
of Tenant’s time to cure such default, collect rent from the subtenant or
occupant.  In either event, Landlord may
apply the net amount collected against Rent, but no such assignment,
subletting, occupancy or collection shall be deemed a waiver of any of the
provisions of Section 36.01(a), or the acceptance of the
assignee, subtenant or occupant as tenant, or a release of Tenant from the
performance of Tenant’s obligations under this Lease.

 

(b)           No assignment or transfer shall be effective until
the assignee delivers to Landlord (i) reasonably satisfactory evidence
that the assignee, as Tenant hereunder, has complied with the requirements of Article 11
and (ii) an agreement in form and substance reasonably satisfactory to
Landlord whereby the assignee assumes Tenant’s obligations under this Lease.

 

(c)           Notwithstanding any assignment or transfer, whether
or not in violation of this Lease, and notwithstanding the acceptance of any
Rent by Landlord from an assignee, transferee, or any other party, the original
named Tenant and each successor Tenant shall remain fully liable for the
payment of the Rent and the performance of all of Tenant’s other obligations
under this Lease.  The joint and several
liability of Tenant and any immediate or remote successors in interest of
Tenant shall not be discharged, released or impaired in any respect by any
agreement made by Landlord extending the time to perform, or otherwise
modifying, any of the obligations of Tenant under this Lease, or by any waiver
or failure of Landlord to enforce any of the obligations of Tenant under this
Lease.

 

(d)           Each subletting by Tenant shall be subject to the
following:

 

(i)            No subletting shall be for a
term (including any renewal or extension options contained in the sublease)
ending later than one day prior to the Expiration Date.

 

(ii)           No sublease shall be valid,
and no subtenant shall take possession of the Demised Premises or any part
thereof, until there has been

 

50

 

delivered to Landlord, both (A) an
executed counterpart of such sublease, and (B) a certificate of insurance
evidencing that (x) Landlord is an additional insured under the insurance
policies required to be maintained by occupants of the Demised Premises
pursuant to Article 11, and (y) there is in full force
and effect, the insurance otherwise required by Section 11.01.

 

(iii)          Each sublease shall provide that
it is subject and subordinate to this Lease, and that in the event of
termination, reentry or dispossess by Landlord under this Lease Landlord may,
at its option, take over all of the right, title and interest of Tenant, as
sublessor, under such sublease, and such subtenant shall, at Landlord’s option,
attorn to Landlord pursuant to the then executory provisions of such sublease,
except that Landlord shall not be liable for, subject to or bound by any item
of the type that a Successor Landlord is not so liable for, subject to or bound
by in the case of an attornment by Tenant to a Successor Landlord under Section 7.01(a).

 

(e)           Each sublease shall provide that the subtenant may
not assign its rights thereunder or further sublet the space demised under the
sublease, in whole or in part, without Landlord’s consent and without complying
with all of the terms and conditions of this Article 36,
including, without limitation, Section 36.03, which for
purposes of this Section 36.03(e) shall be deemed to be appropriately modified to take into
account that the transaction in question is an assignment of the sublease or a
further subletting of the space demised under the sublease, as the case may be.

 

(f)            Tenant shall not publicly advertise the availability
of the Premises or any portion thereof as sublet space or by way of an
assignment of this Lease, without first obtaining Landlord’s consent, which
consent shall not be unreasonably withheld or delayed provided that Tenant
shall in no event advertise the rental rate or any description thereof.
However, Tenant shall have the right to list the availability of the Premises
with a real estate broker, who shall have the right to further list the
availability of the Premises with a listing service that is used by real estate
brokers.

 

36.04       (a)           If the aggregate of the amounts payable as Rent on
account of Real Estate Taxes, and other charges set forth on the Escalation
Statement and electricity by a subtenant under a sublease of any part of the
Demised Premises and the amount of any Other Sublease Consideration (as defined
below) payable to Tenant by such subtenant, whether received in a lump-sum
payment or otherwise shall be in excess of Tenant’s Basic Cost therefor at that
time then, promptly after the collection thereof, Tenant shall pay to Landlord
in monthly installments as and when collected, as additional charges, fifty
percent (50%) of such excess.  Tenant
shall deliver to Landlord within sixty (60) days after the end of each calendar
year and within sixty (60) days after the expiration or earlier termination of
this Lease a statement specifying each sublease in effect during such calendar
year or partial calendar year, the rentable area demised thereby, the term
thereof and a computation in reasonable detail showing the calculation of the
amounts paid and payable by the subtenant to Tenant, and by Tenant to Landlord,
with respect to such sublease for the period covered by such statement.  “Tenant’s Basic Cost”
for sublet space

 

51

 

 

at any time means the sum of
(i) the portion of the Fixed Rent, and additional rent pursuant to Article 5
of this Lease which is attributable to the sublet space, plus (ii) the
amount payable by Tenant on account of electricity in respect of the sublet space,
plus (iii) the amount of any costs reasonably incurred by Tenant in making
changes in the layout and finish of the sublet space for the subtenant
amortized on a straight-line basis over the term of the sublease plus (iv) the
amount of any reasonable brokerage commissions and reasonable legal fees paid
by Tenant in connection with the sublease amortized on a straight-line basis
over the term of the sublease.  For
purposes of this Section 36.05(a), the term “Other Sublease Considerations”
shall mean all sums paid for the furnishing of guaranteed services by Tenant
and the sale or rental of Tenant’s fixtures, leasehold improvements, equipment,
furniture or other personal property less, in the case of the sale thereof, the
then net unamortized or undepreciated cost thereof determined on the basis of
Tenant’s federal income tax returns.

 

(b)           Upon any assignment of this Lease, Tenant shall pay
to Landlord fifty percent (50%) of the Assignment Consideration (as defined
below) received by Tenant for such assignment, after deducting therefrom
customary and reasonable closing expenses. 
For purposes of this Section 36.04(b), the term “Assignment Consideration”
shall mean an amount equal to all sums and other considerations paid to Tenant
by the assignee for or by reason of such assignment (including, but not limited
to, sums paid for the furnishing of guaranteed services by Tenant and the sale
or rental of Tenant’s fixtures, leasehold improvements, equipment, furniture,
furnishings or other personal property, less, in the case of a sale thereof,
the then net unamortized or undepreciated cost thereof determined on the basis
of Tenant’s federal income tax returns).

 

36.05       Notwithstanding anything in this Article 36
to the contrary, Landlord consents to the use of desk and office space within
the Demised Premises by up to two (2) non-affiliated individuals (“Business Invitees”)
having a business relationship with Tenant, subject to the following
conditions: (i) no demising walls shall be permitted separating such
offices from the balance of the Premises, (ii) each Business Invitee is of
character, is engaged in a business, and uses the Demised Premises in a manner
in keeping with the standards in such respects of the other tenancies in the
Building, (iii) Tenant shall promptly provide Landlord with the name,
nature of business and other reasonably requested information of the Business
Invitee, and (iv) the use and occupancy by each Business Invitee is
otherwise expressly subject to all of the terms, covenants, conditions and
obligations on Tenant’s part to be observed and performed under this Lease,
including Tenant’s obligation to indemnify Landlord for all matters arising out
of the Business Invitees’ use of the Demised Premises, and (iv) any
violation of any provision of this Lease by any Business Invitee shall be
deemed to be a default by Tenant under such provision.

 

37.                               Security
Deposit.

 

37.01       (a)           Upon the execution of this Lease, Tenant shall
deposit with Landlord either (i) a cash security deposit of Eighty
Thousand Eight Hundred Forty-Nine and 15/100 ($80,849.15) Dollars or (ii) in
the same amount, an unconditional, irrevocable letter of credit issued or
confirmed by a New York money center banking organization

 

52

 

reasonably satisfactory to
Landlord in its sole discretion, to be presented at a branch located in New
York County as security for the faithful performance and observance by Tenant
of the terms, provisions and conditions of this Lease.  In the event that Tenant shall fully and
faithfully comply with all of the terms, provisions, covenants and conditions
of this Lease, the security deposit held by Landlord shall be reduced by: (a) the
sum of Sixteen Thousand One Hundred Sixty-Nine and 83/100 ($16,169.83) Dollars
on and as of the eighteenth (18th) month following the Commencement Date,
leaving a balance of Sixty Four Thousand Six Hundred Seventy-Nine and 32/100
($64,679.32) Dollars.

 

(b)           If the security deposit is in the form of cash,
Landlord shall hold such security deposit in an interest-bearing savings
account and Tenant shall be entitled to payment annually of the interest earned
thereon, less 1% (one percent) per annum of
the security which Landlord shall be entitled to retain as its administrative
fee.

 

(c)           If the security deposit is in the form of the letter
of credit, Tenant shall pay to Landlord, on demand and as additional rent
hereunder, ail fees and charges paid by Landlord to the bank issuing the letter
of credit or any portion thereof in connection with the transfer of same to any
future owner of the Building.  In the
event of a default by Tenant of any of the terms, provisions and conditions of
this Lease, Landlord shall be permitted to draw down the entire amount of the
letter of credit or any portion thereof and apply the proceeds (or a portion
thereof in accordance with Section 37.02) after expiration of any applicable
grace or cure period.  Landlord shall
also have the right to draw down the entire amount of the letter of credit in
the event that Landlord receives notice that the date of expiry of the letter
of credit will not be extended by the issuing bank. In such event, the
principal of the amount of the letter of credit shall be deemed a cash security
deposit hereunder.

 

37.02       It is agreed that in the event Tenant defaults in
respect of any of the terms, provisions and conditions of this Lease,
including, but not limited to, the payment of Fixed Rent and additional rent,
Landlord may use, apply or retain the whole or any part of the security so
deposited to the extent required for the payment of any Fixed Rent and
additional Rent or any other sum as to which Tenant is in default or for any
sum which Landlord may expend or may be required to expend by reason of Tenant’s
default in respect of any of the terms, covenants and conditions of this Lease,
including, but not limited to, any damages or deficiency in the re-letting of
the Demised Premises, whether such damages or deficiency accrued before or
after summary proceedings or other re-entry by Landlord.  In the event that Tenant shall fully and
faithfully comply with all of the terms, provisions, covenants and conditions
of this Lease, the security deposit shall be promptly returned to Tenant after
the date fixed as the end of the Lease and after delivery of entire possession
of the Demised Premises to Landlord.  In
the event of a sale of the Land and Building or leasing of the Building,
Landlord shall have the right to transfer the security to the vendee or lessee
and Landlord shall thereupon be released by Tenant from all liability for the
return of such security; and Tenant agrees to look solely to the new owner for
the return of said security, and it is agreed that the provisions hereof shall
apply to every transfer or assignment made of the security to a new owner.  Tenant further covenants that it will not
assign or encumber or attempt to assign or encumber the monies

 

53

 

deposited herein as security
and that neither Landlord nor its successors or assigns shall be bound by any
such assignment, encumbrance, attempted assignment or attempted
encumbrance.  In the event Landlord
applies or retains any portion or all of the security deposited (as cash or a letter
of credit), Tenant shall forthwith restore the amount so applied or retained so
that at all times the amount deposited shall be the amount hereinabove then
required to be maintained as the security deposit, exclusive of accrued
interest.

 

38.                               Change
of Location.

 

38.01       Tenant covenants and agrees that Landlord shall have
the absolute and unqualified right, upon notice to Tenant, to designate as the
Demised Premises that part of any other floor in the Building or in the
building located at 215 Lexington Avenue, New York, New York that approximately
corresponds to the Demised Premises hereunder; provided, however, (a) Landlord
may exercise this right only once during the original term of this Lease, (b) such
substituted space shall be the equivalent or better in the appearance of the
Demised Premises upon completion of Landlord’s Work (wear and tear, as well as
damage to the Demised Premises caused by Tenant, excepted), (c) Landlord
shall move Tenant to the substituted space during a single weekend and (d) Landlord
shall pay for all reasonable hard and soft costs of Tenant associated with such
change of location, including, but not limited to replacement of business cards
and stationery for Tenant’s personnel. 
Such notice shall specify and designate the space so substituted for the
Demised Premises.  Notwithstanding such
substitution of space, this Lease and all the terms, provisions, covenants and
conditions contained in this Lease shall remain and continue in full force and
effect, except that the Demised Premises shall be and be deemed to be such
substituted space (hereinafter called “Substituted Space”), with the same force and effect as if
the Substituted Space were originally specified in this Lease as the premises
demised hereunder.

 

38.02       In the event of the substitution of space as provided
in Section 38.01, Tenant, upon six (6) months prior written notice, shall
move to the Substituted Space at Landlord’s expense, and upon failure of Tenant
to so move to the Substituted Space, Landlord may, as Tenant’s agent, remove
Tenant from the Demised Premises to the Substituted Space.  Failure of Tenant to move to the Substituted
Space pursuant to this Article 38 shall be deemed a substantial breach of
this Lease.  Landlord shall reimburse
Tenant for Tenant’s reasonable and necessary out-of-pocket expenses actually
incurred with regard to the move to the Substituted Space.  Upon request from Landlord, Tenant shall
supply Landlord with satisfactory proof of out-of-pocket expenses incurred by
Tenant in moving from the Demised Premises to the Substituted Space.

 

38.03       Following such substitution of space (pursuant to
this Article 38) if any, Landlord and Tenant shall, promptly at the request of
either party, execute and deliver an agreement in recordable form setting forth
such substitution of space.

 

54

 

39.                               Late
Charges.

 

39.01       If Tenant shall fail to pay all or any part of any
installment of Rent for more than ten (10) days after the same shall have
become due and payable, Tenant shall pay as additional rent hereunder to
Landlord a late charge of two cents ($.02) for each dollar of the amount of
such Rent which shall not have been paid to Landlord within such ten (10) business
days after becoming due and payable.

 

39.02       The late charge payable pursuant to Section 39.01
shall be (i) payable on demand and (ii) without prejudice to any of
Landlord’s rights and remedies hereunder at law and equity for nonpayment or
late payment of rent or other sums and in addition to any such rights and
remedies.  No failure by Landlord to
insist upon the strict performance by Tenant of Tenant’s obligations to pay
late charges as provided in this Article 39 shall constitute a waiver by Landlord of
its right to enforce the provisions of this Article 39 in any instance thereafter occurring.

 

39.03       The provisions of this Article 39 shall not be
construed in any way to extend the grace periods or notice periods provided for
elsewhere in this Lease.

 

40.                               Miscellaneous.

 

40.01       Tenant shall not be entitled to exercise any right
or option granted to it by this Lease (if any) at any time when Tenant is in
default, beyond any applicable cure periods, in the performance or observance
of any of the covenants, terms, provisions or conditions on its part to be
performed or observed under this Lease.

 

40.02       Neither Tenant nor any entity controlled by or under
common control with Tenant shall occupy any space in the Building or in the
building known as 215 Lexington Avenue, New York, New York (by assignment,
sublease or otherwise) other than the Demised Premises, except with prior
written consent of Landlord in each instance.

 

40.03       Tenant agrees that its sole remedies in cases where
Landlord’s reasonableness in exercising its judgment or withholding its consent
or approval is applicable pursuant to a specific provision of this Lease, or
any rider or separate agreement relating to this Lease, if any, shall be those
in the nature of an injunction, declaratory judgment, or specific performance,
the rights to money damages or other remedies being hereby specifically waived.

 

40.04       If Landlord places the enforcement of this Lease or
any part thereof, or the collection of any Rent due or to become due hereunder,
or recovery of the possession of the Demised Premises, in the hands of an
attorney, or files suit upon the same, or in the event any bankruptcy,
insolvency or other similar proceeding is commenced involving Tenant, Tenant
shall, upon demand, reimburse Landlord for Landlord’s reasonable attorneys’
fees and disbursements and court costs.

 

55

 

40.05       In the event of a breach or threatened breach by
Tenant of any of its obligations under this Lease, Landlord shall also have the
right of injunction.  The specified
remedies to which Landlord may resort hereunder are cumulative and are not
intended to be exclusive of any other remedies or means of redress to which
Landlord may lawfully be entitled, and Landlord may invoke any remedy allowed
at law or in equity as if specific remedies were not herein provided for.

 

40.06       The Article headings of this Lease are for
convenience only and are not to be given any effect whatsoever in construing
this Lease.

 

40.07       This Lease shall not be binding upon Landlord unless
and until it is signed by Landlord and a signed copy thereof is delivered by
Landlord to Tenant.

 

40.08       The various terms which are defined in other
Articles of this Lease or are defined in Exhibits annexed hereto, shall have
the meanings specified in such other Articles and Exhibits for all purposes of
this Lease and all agreements supplemental thereto, unless the context shall
otherwise require.

 

40.09       The Exhibits annexed to this Lease, and the terms,
covenants, conditions, representations and warranties, if any, contained
therein, shall be deemed part of this Lease with the same force and effect as
if such Exhibits were numbered Articles of this Lease.

 

40.10       As both parties have contributed to the drafting of
this Lease, this Lease shall be construed without regard to any presumption or
other rule requiring construction against the party causing this Lease or
any part thereof to be drafted.

 

40.11       Tenant acknowledges that it has no rights to any
development rights, “air rights” or comparable rights appurtenant to the
Demised Premises, and consents, without further consideration, to any
utilization of such rights by Landlord and agrees to promptly execute and
deliver any instruments which may be requested by Landlord, including
instruments merging zoning lots, evidencing such acknowledgment and consent.

 

40.12       If an excavation shall be made upon land adjacent to
the Demised Premises, or shall be authorized to be made, Tenant shall afford to
the person causing or authorized to cause such excavation, license to enter
upon the Demised Premises for the purpose of doing such work as said person
shall deem necessary to preserve the walls of the Demised Premises or the
Building from injury or damage and to support the same by proper foundations
without any claim for damages or indemnity against Landlord, or diminution or
abatement of rent, or constrictive or actual eviction.  Landlord represents that as of the date
hereof, Landlord has not received any written notice of any authorized
excavation upon such land.

 

40.13       No vaults, vault space or area, whether or not enclosed
or covered, not within the property line of the Building is leased hereunder,
anything contained in or indicated on any sketch, blueprint or plan, or
anything contained elsewhere in this Lease to the contrary notwithstanding.  Landlord makes no representations as to the
location of the

 

56

 

property line of the
Building.  All vaults and vault space and
all such areas not within the property line of the Building, which Tenant may
be permitted to use and/or occupy, is to be used and/or occupied under a
revocable license, and if any such license be revoked, or if the amount of such
space or area be diminished or required by any federal, state or municipal
authority or public utility, Landlord shall not be subject to any liability nor
shall Tenant be entitled to any compensation, diminution or abatement of rent,
nor shall such revocation, diminution or requisition be deemed constructive or
actual eviction.  Any tax, fee or charge
of municipal authorities for such vault or area shall be paid by Tenant.

 

41.                               Right
of First Offer.

 

41.01       Provided no event of default exists at the time
Tenant exercises this right, upon the terms and conditions hereinafter set
forth, Tenant shall have the Right of First Offer (“First Offer Right”), subordinate to existing Tenants’
rights, if any, to lease the entire space (but not a portion) adjacent to the
Demised Premises, as more particularly shown on Exhibit A (“First Offer Space”),
if and as such space becomes vacant and available for lease, from time to
time.  Tenant shall have the right to
lease the First Offer Space upon the same conditions and terms as Landlord is
willing to lease such space in the market.

 

41.02       Tenant’s exercise of its First Offer Right shall be
effective only upon written notification by Tenant to Landlord of Tenant’s
exercise of the First Offer Right (the “Offer Notice”) and its acceptance of the terms set
forth in the written notification of Landlord referred to in the next sentence
of this paragraph.  Such notification
must be given to Landlord within ten (10) business days after Landlord’s
written notification to Tenant (“Landlord’s Offer”) of the
terms and conditions for rental of the First Offer Space or of the vacancy or
termination of a lease for the First Offer Space.  Landlord’s offer shall set forth the rental
terms and other conditions the Landlord is willing to accept.  Time is of essence with respect to Tenant’s
exercise of its rights under this Section, and Tenant acknowledges that
Landlord requires strict adherence to the requirements that the Offer Notice be
timely made and in writing.

 

41.03       In the event Tenant fails to notify Landlord within
said ten (10) business day period, Landlord shall be free to offer said
First Offer Space to a third party on any terms whatsoever, and this First
Offer Right shall be null and void and of no further effect, except as set
forth in the following sentence.  In the
event that Tenant fails to timely notify Landlord within said ten (10) business
days of its exercise of the First Offer Right and Landlord subsequently leases
the First Offer Space to a third party (the “Third Party Lease”),
then, if the First Offer Space subsequently becomes again available for lease,
subject to any renewals or extensions of the Third Party Lease, then Landlord
shall be obligated to again offer the First Offer Space to Tenant and Tenant
shall have ten (10) business days to accept said offer, all upon the same
terms and conditions as are set forth herein.

 

41.04       In the event that the First Offer Right is exercised
by Tenant, Tenant shall lease the First Offer Space upon all the following
terms and conditions:

 

57

 

(a)  The Lease
Commencement Date for the First Offer Space shall be the date set forth in
Landlord’s Offer (“First Offer Space Commencement Date”)
and the Lease Expiration Date for the First Offer Space shall be coterminous
with the Lease for the Demised Premises under the Lease Agreement, or if
extended by any Option to Renew, the amended Lease Expiration Date due to
Tenant’s exercise of its the Option to Renew; within two (2) weeks of
Landlord’s receipt of Tenant’s Offer Notice, Landlord shall prepare an
Amendment to Lease for the First Offer Space, which Amendment shall be promptly
executed and returned by Tenant to Landlord;

 

(b)  The rental rate
for the First Offer Space shall be at the rate which Landlord would quote to
third parties for space comparable to the Premises if it were to become
available for leasing for a lease term scheduled to commence at the time of the
commencement of the applicable option term (“Fair Market Rent”),
but in no event shall the rental rate for the First Offer Space be less than
the rent which Tenant is paying for the Demised Premises immediately prior to
First Offer Space Commencement Date, including Fixed Rent and Additional Rent;

 

(c)  The First Offer
Space shall be delivered to Tenant in its “AS IS” condition, unless otherwise
set forth in Landlord’s Offer;

 

(d)  The First Offer
Right is personal to Tenant and may be exercised only if Tenant is in actual
physical possession of the entire original Demised Premises and may not be
transferred or assigned.

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 

58

 

IN WITNESS WHEREOF, Landlord and Tenant have
duly executed this Lease as of the day and year first above written.

 

 

	
   

  	
  LANDLORD:

  
	
   

  	
  205-215 LEXINGTON AVENUE ASSOCIATES LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Eshaghian 

  
	
   

  	
   

  	
  Name: David Eshaghian 

  
	
   

  	
   

  	
  Title: Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
  TANGOE, INC.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Gary R. Martino

  
	
   

  	
   

  	
  Name: Gary R. Martino 

  
	
   

  	
   

  	
  Title CFO

  

 

Tenant’s Tax Identification
Number is 06-1571143

 

59

 

LANDLORD

 

	
  STATE OF New York 

  	
  )

  	
   

  
	
   

  	
  )

  	
  ss.: 

  
	
  COUNTY OF New York

  	
  )

  	
   

  

 

On the 16th day of September in the year 2009 before
me, the undersigned, personally appeared David Eshaghian, personally known to
me or proved to me on the basis of satisfactory evidence to be the individual
whose name is subscribed to the within instrument and acknowledged to me that
(s)he executed the same in his/her capacity, and that his/her signature on the
instrument, the individual, or the person upon behalf of which the individual
acted, executed the instrument.

 

 

	
  Sabrina V. Eshaghian

  	
  By:

  	
  /s/ Sabrina V. Eshaghian

  
	
  Notary Public, State of New York

  	
   

  	
  Notary Public

  
	
  No. 02ES6075071

  	
   

  	
   

  
	
  Qualified in New York County

  	
   

  	
   

  
	
  Commission Expires May 27, 2010

  	
   

  	
   

  

 

TENANT

 

	
  STATE OF

  	
  )

  	
   

  
	
   

  	
  )

  	
  ss.:

  
	
  COUNTY OF

  	
  )

  	
   

  

 

On the           
day of                   
in the year 2009 before me, the undersigned, personally appeared                                                         ,
personally known to me or proved to me on the basis of satisfactory evidence to
be the individual whose name is subscribed to the within instrument and
acknowledged to me that (s)he executed the same in his/her capacity, and that
his/her signature on the instrument, the individual, or the person upon behalf
of which the individual acted, executed the instrument.

 

 

	
   

  	
   

  
	
   

  	
  Notary Public

  

 

60

 

LANDLORD

 

	
  STATE OF

  	
  )

  	
   

  
	
   

  	
  )

  	
  ss.:

  
	
  COUNTY OF

  	
  )

  	
   

  

 

On the          
day of               
in the year 2009 before me, the undersigned, personally appeared                                                     ,
personally known to me or proved to me on the basis of satisfactory evidence to
be the individual whose name is subscribed to the within instrument and
acknowledged to me that (s)he executed the same in his/her capacity, and that
his/her signature on the instrument, the individual, or the person upon behalf
of which the individual acted, executed the instrument.

 

	
   

  	
   

  
	
   

  	
  Notary Public

  

 

TENANT

 

	
  STATE OF Connecticut

  	
  )

  	
   

  
	
   

  	
  )

  	
  ss.: Milford

  
	
  COUNTY OF New Haven

  	
  )

  	
   

  

 

On the 18 day of Sept. this
the year 2009 before me, the undersigned, personally appeared Gary R. Martino,
personally known to me or proved to me on the basis of satisfactory evidence to
be the individual whose name is subscribed to the within instrument and
acknowledged to me that (s)he executed the same in his/her capacity, and that
his/her signature on the instrument, the individual, or the person upon behalf
of which the individual acted, executed the instrument.

 

 

	
   

  	
  /s/ Wendy Wolfe

  
	
   

  	
  Notary Public 

  
	
   

  	
  My Commission Expires: May 31, 2013

  

 

	
  x

  	
  /s/ Gary R. Martino

  	
   

  	
   

  
	
  x Gary
  R. Martino

  

 

61

 

EXHIBIT A

 

to Lease, Dated September 21st, 2009,

 

Between 205-215 LEXINGTON
AVENUE ASSOCIATES LLC, Landlord,

 

and

 

TANGOE, INC., Tenant

 

FLOOR PLAN

 

A-1

 

 

EXHIBIT B

 

to Lease, Dated September 21st, 2009,

 

Between 205-215 LEXINGTON
AVENUE ASSOCIATES LLC, Landlord,

 

and

 

TANGOE, INC., Tenant

 

LANDLORD APPROVED
CONTRACTORS

 

B-1

 

EXHIBIT C

 

to Lease, Dated September 21st, 2009,

 

Between 205-215 LEXINGTON
AVENUE ASSOCIATES LLC, Landlord,

And

TANGOE, INC., Tenant

 

RULES AND REGULATIONS

 

1.             The
rights of tenants in the entrances, corridors, elevators and escalators of the
Building are limited to ingress in and egress from Tenants’ premises for
Tenants and their employees, licensees and invitees, and no tenant shall use,
or permit the use of the entrances, corridors, escalators or elevators for any
other purpose.  No tenant shall invite to
Tenant’s premises, or permit the visit of, persons in such numbers or under
such conditions as to interfere with the use and enjoyment of any of the
plazas, entrances, corridors, escalators, elevators and other facilities of the
Building by other tenants.  Fire exits
and stairways are for emergency use only, and they shall not be used for any
other purpose by Tenants, their employees, licensees or invitees.  No tenant shall encumber or obstruct, or
permit the encumbrance or obstruction of, any of the sidewalks, plazas,
entrances, corridors, escalators, elevators, fire exits or stairways of the
Building.  Landlord reserves the right to
control and operate the public portions of the Building and the public
facilities, as well as facilities furnished for the common use of Tenants, in
such manner as it deems best for the benefit of Tenants generally.

 

2.             Landlord
may refuse admission to the Building outside of ordinary business hours to any
person not known to the watchman in charge or not having a pass issued by
Landlord or Tenant whose premises are to be entered or not otherwise properly
identified, and may require all persons admitted to or leaving the Building
outside of ordinary business hours to register. 
Any person whose presence in the Building at any time shall, in the
judgment of Landlord, be prejudicial to the safety, character, reputation and
interests of the Building or of its tenants may be denied access to the
Building or may be ejected therefrom.  In
case of invasion, riot, public excitement or other commotion Landlord may
prevent all access to the Building during the continuance of the same, by
closing the doors or otherwise, for the safety of Tenants and protection of
property in the Building.  Landlord may
require any person leaving the Building with any package or other object to exhibit
a pass from Tenant from whose premises the package or object is being removed,
but the establishment and enforcement of such requirement shall not impose any
responsibility on Landlord for the protection of any tenant against the removal
of property from the premises of Tenant. 
Landlord shall, in no way, be liable to any tenant for damages or loss
arising from the admission, exclusion or ejection of any person to or from
Tenant’s premises or the Building under the provisions of this rule.  Canvassing, soliciting or peddling in the
Building is prohibited, and every tenant shall cooperate to prevent the same.

 

3.             No
tenant shall obtain or accept for use in its premises towel, barbering, boot
blacking, floor polishing, lighting maintenance, cleaning or other similar
services from any persons not approved by Landlord which approval shall not be
unreasonably withheld.  Such services
shall be furnished only at such hours, in such places within Tenant’s premises
and under

 

C-1

 

such reasonable regulations
as may be fixed by Landlord.

 

4.             The
cost of repairing any damage to the public portions of the Building or the
public facilities or to any facilities used in common with other tenants,
caused by a tenant or the employees, licensees or invitees of Tenant, shall be
paid by such tenant as additional rent.

 

5.             No
lettering, sign, advertisement, notice or object shall be displayed in or on
the windows or doors, or on the outside of any tenant’s premises, or at any
point inside any tenant’s premises where the same might be visible outside of
such premises, except that the name of tenant may be displayed on the entrance
door of Tenant’s premises, and in the elevator lobbies of the floors which are
occupied entirely by tenant, subject to the approval of Landlord as to the
size, color and style of such display. 
The inscription of the name of Tenant and any permitted subtenant or
assignee on the door of Tenant’s premises shall be done by Landlord at the
expense of Tenant.  Listing of the name
of Tenant on the directory boards in the Building shall be done by Landlord at
its own expense, but listings of any permitted subtenant or any names other
than Tenant itself shall be at the expense of Tenant.

 

6.             No
awnings or other projections over or around the windows shall be installed by
any tenant, and only such window blinds as are supplied or permitted by
Landlord shall be used in a tenant’s premises. 
Linoleum, tile or other floor covering shall be laid in a tenant’s
premises only in a manner approved by Landlord.

 

7.             Landlord
shall have the right to prescribe the weight and position of safes and other
objects of excessive weight, and no safe or other object whose weight exceeds
the lawful load for the area upon which it would stand shall be brought into or
kept upon a tenant’s premises.  If, in
the judgment of Landlord, it is necessary to distribute the concentrated weight
of any heavy object, the work involved in such distribution shall be done at
the expense of Tenant and in such manner as Landlord shall determine.  The moving of safes and other heavy objects
shall take place only outside of ordinary business hours upon previous notice
to Landlord, and the persons employed to move the same in and out of the
Building shall be reasonably acceptable to Landlord and, if so required by law,
shall hold a Master Rigger’s license. 
Freight, furniture, business equipment, merchandise and bulky matter of
any description shall be delivered to and removed from the premises only in the
freight elevators and through the service entrances and corridors,  and 
only  during  hours 
and  in  a manner 
reasonably  approved  by 
Landlord. Arrangements will be made by Landlord with any tenant for
moving large quantities of furniture and equipment into or out of the Building.

 

8.             No
machines or mechanical equipment of any kind, other than ordinary business
machines, may be installed or operated in any tenant’s premises without
Landlord’s prior written consent, and in no case (even where the same are a
type so excepted or as so consented to by Landlord) shall any machines or
mechanical equipment be so placed or operated as to disturb other tenants; but
machines and mechanical equipment which may be permitted to be installed and
used in a tenant’s premises shall be so equipped, installed and maintained by
such tenant as to prevent any disturbing noise, 
vibration or electrical or other interference from being transmitted
from such premises to any other area of the Building.

 

C-2

 

9.             No
noise, including the playing of any musical instruments, radio or television,
except in the ordinary course of business, which in the judgment of Landlord,
might disturb other tenants in the Building, shall be made or permitted by any
tenant, and no cooking other than ordinary catering for business meetings and
employees shall be done in Tenant’s premises, except as expressly approved by
Landlord.  Nothing shall be done or
permitted in any tenant’s premises, and nothing shall be brought into or
permitted in any tenant’s premises, which would impair or interfere with any of
the Building services or the proper and economic heating, cleaning or other
servicing of the Building or the premises, or the use or enjoyment by any other
tenant of any other premises, nor shall there be installed by any tenant any
ventilating, air- conditioning, electrical or other equipment of any kind
which, in the judgment of Landlord, might cause any such impairment or
interference.  No dangerous, inflammable,
combustible or explosive object or material shall be brought into the Building
by any tenant or with the permission of any tenant.  Any cuspidors or similar containers or
receptacles used in any tenant’s premises shall be cared for and cleaned by and
at the expense of Tenant.

 

10.           No
acids, vapors or other materials shall be discharged or permitted to be
discharged into the waste lines, vents or flues of the Building which may
damage them.  The water and wash closets
and other plumbing fixtures in or serving any tenant’s premises shall not be
used for any purpose other than the purpose for which they were designed or
constructed, and no sweeping, rubbish, rags, acids or other foreign substances
shall be deposited therein.

 

11.           No
additional locks or bolts of any kind shall be placed upon any of the doors or
windows in any tenant’s premises and no lock on any door therein shall be
changed or altered in any respect. 
Additional keys for a tenant’s premises and toilet rooms shall be
procured only from Landlord, which may make a reasonable charge therefor.  Upon the termination of a tenant’s lease, all
keys of Tenant’s premises and toilet rooms shall be delivered to Landlord.

 

12.           All
entrance doors in each tenant’s premises shall be left locked and all windows
shall be left closed by Tenant when Tenant’s premises are not in use.  Entrance doors shall not be left open at any
time.

 

13.           Hand
trucks not equipped with rubber tires and side guards shall not be used within
the Building.

 

14.           All
windows in each tenant’s premises shall be kept closed and all blinds therein
above the ground floor shall be lowered and closed when and as reasonably
required because of the position of the sun, during the operation of the
Building air-conditioning system to cool or ventilate Tenant’s premises.

 

15.           Landlord
reserves the right to rescind, alter or waive any rule or regulation at
any time prescribed for the Building when, in its judgment, which will not be
exercised unreasonably or arbitrarily, it deems it necessary, desirable or
proper for its best interest and for the best interests of Tenants, and no
alteration or waiver of any rule or regulation in favor of one tenant
shall operate as an alteration or waiver in favor of any other tenant.  Landlord shall not be responsible to any
tenant for the non-observance or violation by any other tenant of any of the rules and
regulations at any time prescribed for the Building.

 

C-3

 

EXHIBIT D

 

to Lease, Dated September 21st, 2009,

 

Between 205-215 LEXINGTON
AVENUE ASSOCIATES LLC, Landlord,

 

And

 

TANGOE, INC., Tenant

 

COMMERCIAL OFFICE CLEANING
SPECIFICATIONS

 

A.                                   DAILY CLEANING

 

1.             Sweep
floors with treated mop to maintain in clean condition throughout the Building,
including tenant spaces, entrance foyers, lobbies and vestibules and all public
areas, including building corridors, all stone, ceramic tile, marble, terrazzo,
asphalt tile, linoleum, rubber vinyl and other type flooring with special
attention given to hard-to-reach areas.

 

2.             Vacuum
all carpeted areas and rugs, moving light furniture once weekly and carpet
sweep four (4) times weekly.

 

3.             Empty
and clean all wastepaper baskets and disposal receptacles (damp dust as
necessary).  Install liners if provided
by tenant, as necessary

 

4.             Collect
and remove wastepaper, cardboard boxes (which Contractor will flatten) and
waste material to a designated area in or adjacent to the premises.  Separate all wastepaper from other waste
material.  Bag separately all waste
material, debris and wastepaper.  Waste
and/or rubbish bags shall be furnished by Landlord and shall be adequate to
hold contents without breaking.

 

5.             Move
and dust under all desk equipment, ash trays, and telephones and other similar
equipment, replacing and dusting said equipment.

 

6.             Sweep
building and private stairways, wash as necessary, vacuum carpeted stairways,
dust hand rails, balustrades and stringers as necessary.

 

7.             Dust
and wipe clean all furniture, fixtures, shelving, desk equipment, telephones,
cabinets, window sills, door castings, map boards and clean all glass tables
and desk tops with impregnated cloths as needed.

 

8.             Vacuum
upholstered furniture as necessary, but not less frequently than once per 

 

D-1

 

month.

 

9.             Strip
and rewax as needed, maintain all resilient tile flooring in corridors.

 

10.           All
elevator corridors and car thresholds and saddles are to be cleaned and
polished to remove all stains, dirt, paper clips, cigarettes or other similar
debris.

 

B.            LAVATORIES

 

DAILY:

 

a)                                      Sweep and wash
all lavatory floors using proper disinfectants. 
Wash and polish all mirrors, powder shelves, bright work and enameled
surfaces in all lavatories.

 

b)                                     Scour, wash and
disinfect all basins, bowls and urinals throughout all lavatories.

 

c)                                      Wash all toilet
seats, top and bottom sides.

 

d)                                     Empty paper
towel receptacles and transport wastepaper to designated area in basement.

 

e)                                      Fill toilet
tissue holders, towel dispensers, soap dispensers and Kotex/Modess machines.

 

f)                                        Empty sanitary
disposal receptacles.

 

g)                                     Thoroughly wash
all wall tile and stall surfaces, as needed.

 

h)                                     Toilet tissue
is to be supplied by Landlord.  Liquid
hand soap is to be supplied by Tenant. 
Paper towels are to be supplied by Tenant.  Sanitary napkins are to be supplied by
Tenant.

 

PERIODIC:

 

Scrub all floors monthly.

 

Windows to be cleaned twice
per year.

 

D-2

 

EXHIBIT E

 

to Lease, Dated September 21st, 2009,

 

Between 205-215 LEXINGTON
AVENUE ASSOCIATES LLC, Landlord,

 

and

 

TANGOE, INC., Tenant

 

TOTAL ESCALATED RENT &
ELECTRIC

 

E-1

 

	
  

  	
   

  	
  205 LEXINGTON AVENUE  

  Escalated Rent  

  Tangoe, Portion of the 10th Floor

  

 

	
  Year

  	
   

  	
  SF

  	
   

  	
  PSF

  	
   

  	
  Annual Base

  Rent

  	
   

  	
  Rent Bump

  	
   

  	
  Cumulative

  Prior

  Escalation

  	
   

  	
  Interim Rent 

  Sub-Total

  	
   

  	
  Annual

  Escalation 

  @ 2%

  	
   

  	
  Total

  Escalated Rent

  	
   

  	
  Fixed Rent

  	
   

  	
  Electric @

  $3.25/rsf

  	
   

  	
  TOTAL

  ESCALATED

  RENT PLUS

  ELECTRIC

  	
   

  	
  MONTHLY

  RENT

  	
   

  
	
  1

  	
   

  	
  5,707

  	
   

  	
  $

  	
  34.00

  	
   

  	
  $

  	
  194,038.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  194,038.00

  	
   

  	
  0.00

  	
   

  	
  194,038.00

  	
   

  	
  16,169.83

  	
   

  	
  18,547.75

  	
   

  	
  $

  	
  212,585.75

  	
   

  	
  $

  	
  17,715.48

  	
   

  
	
  2

  	
   

  	
  5,707

  	
   

  	
  $

  	
  34.00

  	
   

  	
  $

  	
  194,038.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  194,038.00

  	
   

  	
  3,880.76

  	
   

  	
  197,918.76

  	
   

  	
  16,493.23

  	
   

  	
  18,547.75

  	
   

  	
  $

  	
  216,466.51

  	
   

  	
  $

  	
  18,038.88

  	
   

  
	
  3

  	
   

  	
  5,707

  	
   

  	
  $

  	
  35.00

  	
   

  	
  $

  	
  194,038.00

  	
   

  	
  5,707.00

  	
   

  	
  3,880.76

  	
   

  	
  203,625.76

  	
   

  	
  4,072.52

  	
   

  	
  207,698.28

  	
   

  	
  17,308.19

  	
   

  	
  18,547.75

  	
   

  	
  $

  	
  226,246.03

  	
   

  	
  $

  	
  18,853.84

  	
   

  
	
  4

  	
   

  	
  5,707

  	
   

  	
  $

  	
  36.00

  	
   

  	
  $

  	
  194,038.00

  	
   

  	
  11,414.00

  	
   

  	
  7,953.28

  	
   

  	
  213,405.28

  	
   

  	
  4,268.11

  	
   

  	
  217,673.38

  	
   

  	
  18,139.45

  	
   

  	
  18,547.75

  	
   

  	
  $

  	
  236,221.13

  	
   

  	
  $

  	
  19,685.09

  	
   

  
	
  5

  	
   

  	
  5,707

  	
   

  	
  $

  	
  36.00

  	
   

  	
  $

  	
  194,038.00

  	
   

  	
  11,414.00

  	
   

  	
  12,221.38

  	
   

  	
  217,673.38

  	
   

  	
  4,353.47

  	
   

  	
  222,026.85

  	
   

  	
  18,502.24

  	
   

  	
  18,547.75

  	
   

  	
  $

  	
  240,574.60

  	
   

  	
  $

  	
  20,047.88

  	
   

  

 

 

EXHIBIT F

 

to Lease, Dated September 21st, 2009,

 

Between 205-215 LEXINGTON
AVENUE ASSOCIATES LLC, Landlord,

 

and

 

TANGOE, INC., Tenant

 

DEFINITIONS

 

Definitions

 

1.             The
term “mortgage” shall include an indenture of mortgage and deed of trust to a
trustee to secure an issue of bonds, and the term mortgage shall include such a
trustee.

 

2.             The
terms “include”, “including” and “such as shall each be construed as if
followed by the phrase “without being limited to”.

 

3.             The
phrase “obligations of this Lease”, and words of like import, shall mean the
covenants to pay Rent under this Lease and all of the other material covenants
and conditions of Landlord and Tenant contained in this Lease.  Any provision in this Lease that one party or
the other or both shall do or not do or shall cause or permit or not cause or
permit a particular act, condition, or circumstance shall be deemed to mean
that such party so covenants or both parties so covenant, as the case may be.

 

4.             The
phrase “tenant’s obligations hereunder”, and words of like import, and the
phrase “Landlord’s obligations hereunder”, and words of like import, shall mean
the obligations of this Lease which are to be performed or observed by tenant,
or by Landlord, as the case may be. 
Reference to performance of either party’s obligations under this Lease
shall be construed as “performance and observance”.

 

5.             Reference
to “tenant’s being or not being in default hereunder”, or words of like import,
shall mean that tenant, after expiration of any applicable notice and cure
period, is in default in the performance of one or more of tenant’s material
obligations hereunder, or that tenant is not in default in the performance of
any of tenant’s material obligations hereunder, or that a condition of the
character described in Section 25.01 or 25.02 has occurred and continues or has not
occurred or does not continue, as the case may be.

 

6.             Reference
to Landlord as having no liability to Tenant or being without liability to
Tenant shall mean that, except as otherwise provided in this Lease, Tenant is
not entitled to terminate this Lease, or to claim actual or constructive
eviction, partial or total, or to receive any abatement or diminution of rent,
or to be relieved in any manner of any of its other obligations hereunder, or
to be compensated for loss or injury suffered or to enforce any other kind of
liability whatsoever against Landlord under or with respect to this Lease or
with respect to

 

F-1

 

tenant’s use or occupancy of
the Demised Premises, except as may be provided herein.

 

7.             The
phrase “laws and/or requirements of public authorities”, and words of like
import, shall mean laws and ordinances of any or all of the Federal, state,
city, county and borough governments and rules, regulations, orders and/or
directives of any or all departments, subdivisions, bureaus, agencies or
offices thereof, or of any other governmental, public or quasi- public
authorities, having jurisdiction in the premises, and/or the direction of any
public officer pursuant to law.

 

8.             The
phrase “requirements of insurance bodies”, and words of like import, shall mean
rules, regulations, orders and other requirements of the New York Board of Fire
Underwriters and/or the New York Fire Insurance Rating Organization and/or any
other similar body performing the same or similar functions and having
jurisdiction or cognizance of the Building and/or the Demised Premises.

 

9.             The
term “repair” shall be deemed to include restoration and replacement as may be
necessary to achieve and/or maintain good working order and condition.

 

10.           Reference
to termination of this Lease includes expiration or earlier termination of the
term of this Lease or cancellation of this Lease pursuant to any of the
provisions of this Lease or to law.  Upon
a termination of this Lease, the term and estate granted by this Lease shall
end at noon of the date of termination as if such date were the date of
expiration of the term of this Lease and neither party shall have any further
obligation or liability to the other after such termination (i) except as
shall be expressly provided for in this Lease, or (ii) except for such
obligation as by its nature or under the circumstances can only be, or by the
provisions of this Lease, may be, performed after such termination, and, in any
event, unless expressly otherwise provided in this Lease, any liability for a
payment which shall have accrued to or with respect to any period ending at the
time of termination shall survive the termination of this Lease.

 

11.           The
phrase “in full force and effect” when used in reference to this Lease, as a
condition to the existence or exercise of a right on the part of Tenant, shall
be construed in each instance as including the further condition that at the
time in question no default by tenant of any material obligation on the part of
tenant exists, and no event has occurred which has continued to exist for such
period of time (after the notice, if any, and expiration of any applicable
notice and cure period, required by this Lease), as would entitle Landlord to
terminate this Lease or to dispossess Tenant.

 

12.           The
term “Tenant” shall mean Tenant herein named or any assignee or other
successor in interest immediate or remote of Tenant herein named, while such Tenant
or such assignee or other successor in interest, as the case may be, is in
possession of the Demised Premises as owner of Tenant’s estate and interest
granted by this Lease.

 

13.           The
term “lending institution” shall mean a savings bank, a commercial bank or
trust company (whether acting individually or in any fiduciary capacity), an
insurance company, an educational institution or a state, municipal, or
welfare, pension, or retirement fund or system; provided such lending
institution shall be subject to the jurisdiction of the courts of the State of

 

F-2

 

New York in any action, and
to the supervision of the Controller of the Currency of the United States of
America, or of the Insurance or Banking Department of the State of New York or
of the state of incorporation of such lending institution, or of the Board of
Regents of the University of the State of New York.

 

14.           The
phrase “Lease Year” or “lease year” shall mean a period of
twelve (12) consecutive months, the first of which shall begin on the first day
of the month following the Commencement Date (or on the Commencement Date if
same is the first day of the month) and ending on the last day of the twelfth
(12th) month
thereafter.

 

15.           Words
and phrases used in the singular shall be deemed to include the plural and vice
versa, and nouns and pronouns used in any particular gender shall be deemed to
include any other gender.

 

16.           The
rule of ejusdem generis shall not be applicable to limit a general statement
following or referable to an enumeration of specific matters to matters similar
to the matters specifically mentioned.

 

17.           All
references in this Lease to numbered Articles, numbered Sections and lettered
Exhibits are references to Articles and Sections of this Lease, and Exhibits
annexed to (and thereby made part of) this Lease, as the case may be, unless
expressly otherwise designated in the context.

 

18.           The
term “Applicable Laws” shall mean all federal, New York
State and New York City laws, statutes, codes and ordinances, now or hereafter
enacted or promulgated, including the Americans with Disabilities Act of 1990,
Public Law 101-336, 42 U.S.C. § 12101 et seq.; New
York State Energy Conservation Construction Code, Local Law of 1973, Local Law
16 of 1984, and the Administrative Code of the City of New York; building,
health, safety, zoning and fire prevention laws; Environmental Laws; rent
stabilization and rent control laws, statutes, codes and ordinances; the rules and
regulations promulgated pursuant to any of the foregoing laws, statutes, codes
and ordinances; business improvement district rules and regulations; and
all executive, administrative and judicial orders and decrees issued in
connection with the enforcement of the foregoing, whether foreseen or
unforeseen, ordinary or extraordinary, whether applying retroactively or
prospectively, which may pertain to the ownership, use, occupancy or enjoyment
of the Real Property or any portion thereof.

 

19.           The
term “Environmental Laws” shall mean those Applicable Laws,
whether federal, New York State or New York City laws, statutes, codes and
ordinances, now or hereafter enacted or promulgated, pertaining to the
production, generation, release, discharge, emission, disposal, transportation,
containment or storage, clean-up or remediation of any condition involving any
Hazardous Substance or the licensing or permitting of any of the foregoing or
of any Hazardous Activity, including the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, 42 U.S.C. §§ 9601 et seq.,
as amended by the Superfund Amendments and Reauthorization Act of 1986; the
Resource Conservation and Recovery Act of 1976, 42 U.S.C §§ 6901 et seq.; the Federal Water Pollution Control Act, 33 U.S.C.
§§ 1251 et seq.; the Clean Air Act, 42 U.S.C. §§
7401 et seq.; the Clean Water Act, 33 U.S.C. §§ 1251 et seq.;
the

 

F-3

 

National Environmental
Policy Act, 42 U.S.C. § 4321, the Hazardous Materials Transportation Act of
1975, 49 U.S.C. §§ 1801-1812; the Toxic Substances Control Act 15 U.S.C. §§
2601 et seq.; the Refuse Act, 33 U.S.C. §§
401 et seq.; the State Environmental
Liability Review Act, New York Environmental Conservation Law (ECL) §§ 8-0101 et seq.; Section 27-1501 of the New York Environmental
Conservation Law the Water Pollution Control Act, ECL § § 17-0101 et seq.; the Air Pollution Control Act.  §§ 19-0101-19-0923; and the Public Health
Law, including, specifically, Section 1389aa of the New York Public Health
Law, or any law amending or superseding any of the foregoing; and any law of
like or similar import to any of the foregoing, and the rules and
regulations promulgated pursuant to such laws, statutes, codes and ordinances
and all executive, administrative and judicial orders and decrees issued in
connection with the enforcement of the foregoing, whether foreseen or
unforeseen, ordinary or extraordinary, whether applying retroactively or
prospectively.

 

20.           “Hazardous Activity”
shall mean any activity, process, procedure or undertaking, whether occurring
before, on or after the date hereof, which directly or indirectly (i) produces,
generates or creates any Hazardous Substance; (ii) causes or results (or
threatens to cause or result) in the release of any Hazardous Substance into
the environment (including the air, ground water, watercourses or water
systems); (iii) involves the production, generation, release, discharge,
emission, disposal, transportation or storage, clean-up or remediation of any
Hazardous Substance; or (iv) causes or tends to cause the Premises or any
portion to become a hazardous waste treatment, storage or disposal facility
within the meaning of any Environmental Law.

 

21.           “Hazardous Condition”
shall mean any condition which would be the basis for (i) any claim for
damages, clean-up costs,  remediation
costs, fines or penalties under any Environmental Law or applicable common law
or (ii) the imposition of any lien on any property pursuant to any
Environmental Law.

 

22.           “Hazardous Substance”
shall mean any hazardous substance as defined in the Comprehensive
Environmental Response, Compensation and liability Act of 1980, 42 U.S.C. §§
9601 et seq., as amended by the Superfund
Amendments and Reauthorization Act of 1986; hazardous waste as defined in the
Resource Conservation and Recovery Act of 1976, 42 U.S.C. §§ 6901 et seq., as any of the foregoing may be amended or
superseded; oil; petroleum product, derivative, compound or mixture; mineral,
including asbestos; chemical; gas; medical waste; polychlorinated biphenyls
(pcb’s); methane; radon; radioactive material, volatile hydrocarbons; or other
material, whether naturally occurring, man-made or the byproduct of any
process, which is toxic, harmful or hazardous or acutely hazardous to the
environment or public health or safety; or any other substance the existence of
which on or at any property would be the basis for a claim for damages,
clean-up costs or remediation costs, fine, penalty or lien under any
Environmental law or applicable common law.

 

23.           The
term “Governmental Authority” shall mean any federal, state
or municipal court of competent jurisdiction, executive department, legislature
or comparable body, administrative agency, commission, bureau, board,
quasi-Governmental Authority, public corporation or instrumentality and any
governmental official charged with the promulgation or enforcement of any or
all Applicable Laws.

 

F-4

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