Document:

Lease Agreement

     

     

    Exhibit
      10.7

     

    Execution
      Counterpart

     

    
      
        

      

    

     

    AGREEMENT
      OF LEASE

     

    between

     

    SLG
      Graybar Sublease LLC

     

    Landlord

     

    and

     

    FermaVir
      Research, Inc.

     

    Tenant

     

    Dated
      as of July 1, 2005

     

    Room
      445-47

    420
      Lexington Avenue

    New
      York, New York

     

    
      

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
      OF CONTENTS

     

    
      	
              TABLE
                OF CONTENTS

            	
              1

            
	 	 	 
	ARTICLE 1	
               DEMISE;
                PREMISES AND PURPOSE 

            	
              1

            
	 	 	 
	ARTICLE 2	
               TERM

            	
              2

            
	 	 	 
	ARTICLE 3	
               RENT
                AND ADDITIONAL RENT

            	
              2

            
	 	 	 
	ARTICLE 4	
               ASSIGNMENT/SUBLETTING

            	
              3

            
	 	 	 
	ARTICLE 5	
               DEFAULT

            	
              8

            
	 	 	 
	ARTICLE 6	
               RELETTING,
                ETC

            	
              9

            
	 	 	 
	ARTICLE 7	
               LANDLORD
                MAY CURE DEFAULTS

            	
              10

            
	 	 	 
	ARTICLE 8	
               ALTERATIONS

            	
              10

            
	 	 	 
	ARTICLE 9	
               LIENS 

            	
              13

            
	 	 	 
	ARTICLE 10
              	
              REPAIRS

            	
              13

            
	 	 	 
	ARTICLE 11
              	
              FIRE
                OR OTHER
                CASUALTY

            	
              14

            
	 	 	 
	ARTICLE 12 	
              END
                OF TERM

            	
              15

            
	 	 	 
	ARTICLE 13 	
              SUBORDINATION
                AND ESTOPPEL, ETC.

            	
              16

            
	 	 	 
	ARTICLE 14 	
              CONDEMNATION

            	
              18

            
	 	 	 
	ARTICLE 15 	
              REQUIREMENTS
                OF LAW

            	
              18

            
	 	 	 
	ARTICLE
              16	
              CERTIFICATE
                OF OCCUPANCY 

            	
              19

            
	 	 	 
	ARTICLE I7 	
              POSSESSION

            	
              19

            
	 	 	 
	ARTICLE 18 	
              QUIET
                ENJOYMENT

            	
              19

            
	 	 	 
	ARTICLE
              19	
              RIGHT
                OF ENTRY 

            	
              20

            
	 	 	 
	ARTICLE 20 	
              INDEMNITY

            	
              20

            
	 	 	 
	ARTICLE 21 	
              LANDLORD'S
                LIABILITY, ETC

            	
              20

            
	 	 	 
	ARTICLE 22 	
              CONDITION
                OF PREMISES

            	
              21

            
	 	 	 
	ARTICLE 23 	
              CLEANING

            	
              22

            
	 	 	 
	ARTICLE 24 	
              JURY
                WAIVER

            	
              23

            
	 	 	 
	ARTICLE 25	
               NO
                WAIVER, ETC.

            	
              23

            
	 	 	 
	ARTICLE
              26
              	
              OCCUPANCY
                AND USE BY TENANT 

            	
              24

            

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    
      	ARTICLE 27 	
              NOTICES

            	
              25

            
	 	 	 
	ARTICLE 28 	
              WATER

            	
              25

            
	 	 	 
	ARTICLE 29 	
              SPRINKLER
                SYSTEM

            	
              25

            
	 	 	 
	ARTICLE 30 	
              HEAT,
                ELEVATOR, ETC.

            	
              26

            
	 	 	 
	ARTICLE 31 	
              SECURITY
                DEPOSIT

            	
              26

            
	 	 	 
	ARTICLE 32 	
              TAX
                ESCALATION

            	
              27

            
	 	 	 
	ARTICLE 33 	
              RENT
                CONTROL

            	
              29

            
	 	 	 
	ARTICLE
              34 	
              SUPPLI
                ES

            	
              30

            
	 	 	 
	ARTICLE 35 	
              AIR
                CONDITIONING

            	
              31

            
	 	 	 
	ARTICLE 36 	
              SHORING
                

            	
              32

            
	 	 	 
	ARTICLE 37
              	
              EFFECT
                OF CONVEYANCE, ETC.

            	
              32

            
	 	 	 
	ARTICLE 38 	
              RIGHTS
                OF SUCCESSORS AND ASSIGNS

            	
              32

            
	 	 	 
	ARTICLE 39
              	
              CAPTIONS

            	
              33

            
	 	 	 
	ARTICLE 40 	
              BROKERS

            	
              33

            
	 	 	 
	ARTICLE 41 	
              ELECTRICITY
                

            	
              33

            
	 	 	 
	ARTICLE 42	
              LEASE
                SUBMISSION

            	
              38

            
	 	 	 
	ARTICLE 43 	
              INSURANCE

            	
              38

            
	 	 	 
	ARTICLE 44 	
              SIGNAGE

            	
              41

            
	 	 	 
	ARTICLE 45 	
              RIGHT
                TO RELOCATE

            	
              .41

            
	 	 	 
	ARTICLE 46 	
              FUTURE
                CONDOMINIUM CONVERSION

            	
              42

            
	 	 	 
	ARTICLE 47 	
              MISCELLANEOUS

            	
              42

            
	 	 	 
	ARTICLE 48 	
              COMPLIANCE
                WITH LAW

            	
              44

            
	 	 	 
	ARTICLE 49 	
              RULES
                AND REGULATIONS

            	
              45

            

    

    
       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

       

      INDEX
        OF
        DEFINED TERMS

    

     

    
      	
              TERM

            	
              PAGE

            
	
              Additional
                Rent

            	
              2

            
	
              Alterations

            	
              11

            
	
              Base
                Tax Year

            	
              27

            
	
              Brokers

            	
              33

            
	
              Building

            	
              1

            
	
              Building
                Cleaning Contractor

            	
              22

            
	
              Building
                Project

            	
              27

            
	
              Commencement
                Date

            	
              2

            
	
              Comparative
                Year

            	
              27

            
	
              Cooling
                Season

            	
              31

            
	
              Declaration

            	
              42

            
	
              Delivery
                Personnel

            	
              1

            
	
              Designated
                Agent

            	
              3

            
	
              ERIF

            	
              34

            
	
              Excess
                electricity

            	
              35

            
	
              Existing
                HVAC Equipment

            	
              31

            
	
              Expiration
                Date

            	
              2

            
	
              Fixed
                Annual Rent

            	2
	
              HVAC
                System

            	
              31

            
	
              Landlord

            	
              1

            
	
              Landlord's
                Electrical Consultant

            	
              35

            
	
              Landlord's
                Relocation Work

            	
              41

            
	
              Landlord's
                Restoration Work

            	
              14

            
	
              Landlord's
                Work

            	
              21

            
	
              Lease

            	
              1

            
	
              Leaseback
                Area

            	
              4

            
	
              Ordinary
                Business Hours

            	
              34

            
	
              Ordinary
                Equipment

            	
              34

            
	
              Premises

            	
              1

            
	
              Real
                Estate Taxes

            	
              27

            
	
              Recapture
                Date

            	
              4

            
	
              Relocation
                Effective Date

            	
              41

            
	
              Relocation
                Notice

            	
              41

            
	
              Relocation
                Space

            	
              41

            
	
              Rent

            	
              2

            
	
              Security

            	
              26

            
	
              Supplemental
                Systems

            	
              31

            
	
              Tenant

            	1
	
              Tenant
                Cleaning Services

            	23
	
              Tenant's
                Recapture Offer

            	4
	
              Tenant's
                Share

            	27
	
              Term

            	2

    

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

     

    LEASE
      (this “Lease”) made as of the 1st day of July 2005 between SLG
      Graybar Sublease
      LLC having an office c/o SL Green Realty Corp., at 420 Lexington Avenue, New
      York, New
      York,
      10170, hereinafter referred to as “Landlord”, and FermaVir Research, Inc.,
a ____________
      corporation
      having an office at ____________ , hereinafter
      referred to as
      “Tenant”.

     

    WITNESSETH

     

    Landlord
      and Tenant, in consideration of the mutual agreements herein contained and
      other
      good and
      valuable
      consideration, the receipt and sufficiency of which is
      hereby
      acknowledged, hereby
      covenant and agree as
      follows:

     

    ARTICLE
      1

     

    DEMISE:
      PREMISES
      AND PURPOSE

     

    1.01    
      Landlord hereby leases and demises to Tenant, and Tenant
      hereby
      hires
      and
      takes
      from Landlord, those certain Premises located on and comprising a
      rentable
      portion of the fourth (4th)
      floor
      designated as
      Room
      445-47, approximately as indicated by
      hatch
      marks
      on
      the
plan
      annexed hereto and made a
      part
      hereof
      as
      "Exhibit
      A" (the "Premises") in
      the
      building
      known
      as
      and
      located at
      420
      Lexington Avenue, New York, New York (the "Building") subject to
the
      provisions of this Lease.

     

    1.02.    
      The Premises shall
      be
      used
      and occupied for executive and general office use
      consistent
      with
      that
      found in
      Class
      "A"
      high-rise office buildings located in
      midtown Manhattan
      only
      and
for
      no
      other purpose.

     

    1.03    
      Neither the
      Premises,
      nor the halls, corridors,
      stairways,
      elevators or
      any
other
      portion of
      the
      Building shall
      be
used
      by
      the Tenant or the Tenant's servants, employees, licensees,
      invitees
      or visitors
      in connection
      with the aforesaid permitted use or otherwise so
      as
to
      cause
      any
      congestion of
      the
public
      portions of the Building or the
      entranceways,
      sidewalks or
      roadways
      adjoining
      the
      Building whether by tracking or by the congregating or
      loitering
      thereon
      of the
      Tenant
      and/or
      the
      servants, employees, licensees, invitees or
      visitors
      of the Tenant.

     

    1.04    
      Tenant shall
      not
      permit messengers, delivery personnel or other individuals providing
such
      services
      to Tenant
      (“Delivery
      Personnel”) to:
      (i)
      assemble, congregate or
      to
      form
a
      line
      outside
      of
      the
      Premises or
      the
      Building or otherwise impede the flow
      of
      pedestrian traffic outside
      of
      the
Premises
      or Building or (ii) park or
      otherwise
      leave bicycles, wagons or other delivery
      carts
      outside of the Premises or the Building except in
      locations
      outside of the Building designated
      by
      Landlord from
      time-to-time. Tenant shall
      require
      all Delivery Personnel to comply with
      rules
      promulgated
      by Landlord from time-to-time regarding the
      use
      of
      outside
      messenger services.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      2

     

    TERM

     

    2.01    
      The Premises are leased for a term of
      seven
      (7)
      years (the "Term") which shall
      commence on September 1, 2005
      (the
      "Commencement
      Date")
      and shall end
      on
      the
      31st day of
      August,
      2012
      (the
"Expiration
      Date")
      or
      on
      such earlier
      date
      upon
which
      the
      Term
      shall expire,
      be canceled or terminated pursuant
      to any
      of
      the
      conditions
      or
      covenants of this Lease
      or
      pursuant to law.

     

    ARTICLE
      3

     

    RENT
      AND ADDITIONAL RENT

     

    3.01    
      Tenant shall pay fixed annual rent without electricity (the "Fixed Annual
Rent")
      at the
      rates
provided
      for in the schedule annexed hereto and made a part hereof as " Exhibit
B"
      in
      equal monthly installments in advance on the
      first
      (1st) day of each calendar month
      during
      the
      Term,
      except that the first (1st) monthly
      installment
      of Fixed Annual Rent shall be paid
      by
      Tenant
      upon
      its
      execution of this Lease.
      All
      sums
      other than
      Fixed
      Animal Rent payable hereunder
      shall
      be
      deemed
      to be "Additional
      Rent"
      and shall be payable on demand,
      unless
      other payment
      dates
      are
      hereinafter provided. Tenant shall pay
      all
      Fixed
      Annual Rent and Additional Rent
      due
      hereunder
      at
      the
      office of
      Landlord
      or such other
      place
      as
      Landlord may designate, payable
      in United States legal tender, by cash,
      or
by
      good
      and
      sufficient check drawn on a New York
      City
      bank which is a member of the New York Clearing House or a successor thereto,
      and without
      any set off or deduction whatsoever. The term "Rent" as used
      in
      this
      Lease shall mean Fixed
      Annual
      Rent and Additional Rent.
      Landlord
      may apply payments made by Tenant towards the
      payment of any item of
      Fixed
      Annual Rent
      and/or
      Additional Rent
      payable
      hereunder notwithstanding
      any designation by Tenant as to the
      items
      against
      which
      any
      such payment should be
      credited.

     

    3.02    
      Subject to
      the
      provisions hereof,
      if
      and
      so
      long
      as Tenant is not in default under
      this Lease, the
      first
      (1st)
      monthly
      installments of Fixed
      Annual Rent
      (without electricity) accruing
      under the
      Lease
      shall be abated
      by
      the
      sum of
      $7,315.08.
      Anything contained hereinabove
      to
      the
      contrary notwithstanding, if Tenant at any
      time
      during
      the
      term
      of the Lease, breaches any material covenant,
      condition
      or provision of the
      Lease
      and
      fails
      to
cure
      such
      breach within any applicable
      grace
      period, and
      provided
      that the Lease is terminated by Landlord because of
      such
      material default, then,
      in
      addition to all
      other
      damages and
      remedies herein
      provided and to
      which
      Landlord
      may be
      otherwise
      entitled, Landlord shall also be
      entitled
      to the
      repayment
      in
      full
      of
all
      Rent
which
      has
      theretofore
      been abated under the provisions of
      this
      Lease, which repayment
      Tenant shall make upon demand therefor.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      4

     

    ASSIGNMENT/SUBLETTING

     

    4.01    
      Neither Tenant nor Tenant's legal representatives or successors in interest
      by
      operation of law or otherwise, shall assign, mortgage or otherwise encumber
      this
      Lease, or sublet or
      permit
      all or part of the Premises to be used by others, without the prior written
      consent of Landlord
      in each instance. The transfer of a majority of the issued and outstanding
      capital stock of any corporate tenant or sublessee of this Lease or a majority
      of the total interest in any partnership tenant or sublessee or company, however
      accomplished, and whether in a single transaction or in a series of related
      or
      unrelated transactions, the conversion of a tenant or sublessee entity to either
      a limited
      liability company or a limited liability partnership or the merger or
      consolidation of a corporate
      tenant or sublessee, shall be deemed an assignment of this Lease or of such
      sublease. If this
      Lease is assigned, or if the Premises or any part thereof is underlet or
      occupied by anybody other
      than Tenant, Landlord may, after default by Tenant, collect rent from the
      assignee, undertenant
      or occupant, and apply the net amount collected to the rent herein reserved,
      but
      no assignment,
      underletting, occupancy or collection shall be deemed a waiver of the provisions
      hereof,
      the acceptance of the assignee, undertenant or occupant as tenant, or a release
      of Tenant from
      the
      further performance by Tenant of covenants on the part of Tenant herein
      contained. The consent by Landlord to an assignment or underletting shall not
      in
      any way be construed to relieve Tenant
      from obtaining the express consent in writing of Landlord to any further
      assignment or underletting.
      In no event shall any permitted sublessee assign or encumber its sublease or
      further sublet all or any portion of its sublet space, or otherwise suffer
      or
      permit the sublet space or any part
      thereof to be used or occupied by others, without Landlord's prior written
      consent in each instance.
      A modification, amendment or extension of a sublease shall be deemed a sublease.
      The listing of the name of a party or entity other than that of Tenant on the
      Building or floor directory or
      on or
      adjacent to the entrance door to the Premises shall neither grant such party
      or
      entity any right
      or
      interest in this Lease or in the Premises nor constitute Landlord's consent
      to
      any assignment
      or sublease to, or occupancy of the Premises by, such party or entity. If any
      lien is filed
      against the Premises or the Building of which the same form a part for brokerage
      services claimed
      to have been performed for Tenant in connection with any such assignment or
      sublease, whether
      or not actually performed, the same shall be discharged within ten (10) days
      thereafter, at Tenant's
      expense, by filing the bond required by law, or otherwise, and paying any other
      necessary
      sums, and Tenant agrees to indemnify Landlord and its agents and hold them
      harmless from
      and
      against any and all claims, losses or liability resulting from such lien for
      brokerage services
      rendered. Tenant hereby grants Landlord's rental agent for the Building, or
      such
      other licensed
      real estate broker as shall be designated by Landlord from time-to-time (the
      "Designated
      Agent"), the
      sole
      and exclusive right to effect any sublet, assignment, release and other
      disposition of
      all or
      any part of the demised Premises and any other space Tenant has under lease
      elsewhere in the
      Building (provided, however, that Tenant acknowledges and agrees that such
      Designated Agent from
      time
      to time may be obligated to endeavor to rent competitive space available in
      the
      Building on behalf
      of
      and pursuant to the instructions of Landlord or another tenant of the Building)
      and Tenant

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    shall
      pay
      to such Designated Agent upon execution of each such sublease, assignment,
      release or other
      disposition a commission computed in accordance with such Designated
      Agent's standard rates
      and
      rules then in effect for the locality in which the Building is
      located.

     

    4.02    
      If Tenant desires to assign this Lease or to sublet all or any portion of the
      Premises, it shall first submit in writing to Landlord the documents described
      in Section 4.06 hereof,
      and shall offer in writing ("Tenant's
      Recapture Offer"),
      (i) with respect to a prospective assignment,
      to assign this Lease to Landlord without any payment of moneys or other
consideration
      therefor, or, (ii) with respect to a prospective subletting, to sublet to
      Landlord the portion
      of the Premises involved ("Leaseback Area" for the term specified by Tenant
      in
      its proposed
      sublease or, at Landlord's option for the balance of the term of the Lease
      less
      one (1) day,
      and
      at the lower of (a) Tenant's proposed subrental or (b) the rate of Fixed Annual
      Rent and Additional
      Rent, and otherwise on the same terms, covenants and conditions (including
      provisions relating
      to escalation rents), as are contained herein and as are allocable and
      applicable to the portion
      of the Premises to be covered by such subletting. Tenant's Recapture Offer
      shall
      specify the date when the Leaseback Area will be made available to Landlord,
      which date shall be in no event
      earlier than ninety (90) days nor later than one hundred eighty (180) days
      following the acceptance
      of Tenant's Recapture Offer (the "Recapture Date"). If an offer of
      sublease is made, and
      if
      the proposed sublease will result in all or substantially all of the Premises
      being sublet, then Landlord
      shall have the option to extend the term of its proposed sublease for the
      balance of the term
      of
      this Lease less one (1) day. Landlord shall have a period of ninety (90) days
      from the receipt
      of such Tenant's Recapture Offer to either accept or reject Tenant' s Recapture
      Offer or to terminate
      this Lease.

     

    4.03    
      If Landlord exercises its option to terminate this Lease, then (i) the term
      of
this
      Lease shall end at the election of Landlord either (x) on the date that such
      assignment or sublet was
      to
      become effective or commence, as the case may be, or (y) on the Recapture Date
      and (ii) Tenant
      shall surrender to Landlord and vacate the Premises on or before such date
      in
      the same condition
      as is otherwise required upon the expiration of this Lease by its terms, (iii)
      the Rent and Additional Rent due hereunder shall be paid and apportioned to
      such
      date, and (iv) Landlord shall be free to lease the Premises (or any portion
      thereof) to any individual or entity including, without limitation,
      Tenant's proposed assignee or subtenant.

     

    4.04    
      If Landlord shall accept Tenant's Recapture Offer (i) Tenant shall then
execute
      and deliver to Landlord, or to anyone designated or named by Landlord, an
      assignment or sublease,
      as the case may be, in either case in a form reasonably satisfactory to
      Landlord's counsel;
      and (ii) Tenant, on demand, shall pay to Landlord or its managing agent (as
      Landlord shall
      elect) an amount equal to the brokerage commissions which would have been
      incurred by Tenant
      but for Landlord's accepting Tenant's Recapture Offer.

     

     If
      a sublease is so made it shall expressly:

     

    (i)       
      permit Landlord to make further subleases of all or any part of the Leaseback
      Area and (at no cost or expense to Tenant) to make and authorize any and all
      changes, alterations,
      installations and improvements in such space as necessary;

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
       

    

    (ii)       
      provide
      that Tenant will at all times permit reasonably appropriate means of
ingress
      to and egress from the Leaseback Area;

     

    (iii)      
      negate
      any intention that the estate created under such sublease be merged with
      any
      other estate held by either of the parties;

     

    (iv)      
      provide
      that Landlord shall accept the Leaseback Area "as
      is"
      except that Landlord,
      at Tenant's expense, shall perform all such work and make all such alterations
      as may be required
      physically to separate the Leaseback Area from the remainder of the Premises
      and
      to permit
      lawful occupancy, it being intended that Tenant shall have no other cost or
      expense in connection
      with the subletting of the Leaseback Area;

     

    (v)       
      provide
      that at the expiration of the term of such sublease Tenant will accept
the
      Leaseback Area in its then existing condition, subject to the obligations of
      Landlord to make such
      repairs thereto as may be necessary to preserve the Leaseback Area in good
      order
      and condition,
      ordinary wear and tear excepted.

     

    4.05    
      Landlord shall indemnify and save Tenant harmless from all obligations
under
      this Lease as to the Leaseback Area during the period of time it is so sublet,
      except for Fixed
      Annual Rent and Additional Rent, if any, due under the within Lease, which
      are
      in excess of the
      rents
      and additional sums due under such sublease. Subject to the foregoing,
      performance by Landlord,
      or its designee, under a sublease of the Leaseback Area shall be deemed
      performance by Tenant of any similar obligation under this Lease and any default
      under any such sublease shall not give
      rise
      to a default under a similar obligation contained in this Lease, nor shall
      Tenant be liable for
      any
      default under this Lease or deemed to be in default hereunder if such default
      is
      occasioned by
      or
      arises from any act or omission of the tenant under such sublease or is
      occasioned by or arises
      from any act or omission of any occupant holding under or pursuant to any such
      sublease.

     

    4.06    
      If Tenant requests Landlord's consent to a specific assignment or subletting,
      it
      shall
      submit in writing to Landlord (i) the name and address of the proposed assignee
      or sublessee,
      (ii) a duly executed counterpart of the proposed agreement of assignment or
      sublease, (iii)
      reasonably satisfactory information as to the nature and character of the
      business of the proposed
      assignee or sublessee and as to the nature of its proposed use of the space,
      and
      (iv) banking,
      financial or other credit information relating to the proposed assignee or
      sublessee reasonably
      sufficient to enable Landlord to determine the financial responsibility and
      character of the
      proposed assignee or sublessee.

     

    4,07.    
      If Landlord shall not have accepted Tenant' s Recapture Offer and Landlord
      shall
      not
      have terminated this Lease, as provided for in Section 4.02 hereof, then
      Landlord will not unreasonably
      withhold or delay its consent to Tenant's request for consent to such specific
      assignment
      or subletting for the use permitted under this Lease, provided
      that:

     

    (i)        
      The
      Premises shall not, without Landlord's prior consent, have been listed
or
      otherwise publicly advertised for assignment or subletting at a rental rate
      lower than the higher

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    of
      (a)
      the Fixed Annual Rent and all Additional Rent then payable, or (b) the then
      prevailing rental rate for other space in the Building;

     

    (ii)       
      The
      proposed assignee or subtenant shall have a financial standing, be of
a
      character,
      be engaged in a business, and propose to use the Premises, in a manner
      consistent with the
      permitted use and in keeping with the standards of the Building;

     

    (iii)      
      The
      proposed assignee or subtenant shall not then be a tenant, subtenant,
assignee
      or occupant of any space in the Building, nor shall the proposed assignee or
      subtenant be a
      person
      or entity who has dealt with Landlord or Landlord's agent (directly or through
      a
      broker) with
      respect to space in the Building during the six (6) months immediately preceding
      Tenant's request
      for Landlord's consent;

     

    (iv)      
      The
      character of the business to be conducted in
      the
      Premises by the proposed
      assignee or subtenant shall not be likely to increase operating expenses or
      the
      burden on existing cleaning services, elevators or other services and/or systems
      of the Building;

     

    (v)       
      In
      case
      of a subletting, the subtenant shall be expressly subject to
      all
      of
      the obligations
      of
      Tenant
      under this Lease and the further condition and restriction that such sublease
      shall not be assigned, encumbered or otherwise transferred or the Premises
      further sublet by the
      subtenant
      in whole or in part, or any part thereof suffered or permitted by the subtenant
      to be used or occupied by others, without the prior written consent of Landlord
      in each instance;

     

    (vi)      
      No
      subletting shall end later than one (1) day before the Expiration Date nor
      shall
      any
      subletting be for a term of less than two (2) years unless it commences less
      than two (2) years
      before the Expiration Date;

     

    (vii)      
      At
      no
      time
      shall there be more than two (2) occupants, including Tenant, in the
      Premises;

     

    (viii)      Tenant
      shall reimburse Landlord on demand for any reasonable costs, including
      attorneys' fees and disbursements, that may be incurred by Landlord in
      connection with said
      assignment or sublease;

     

    (ix)      
      The
      character of the business to be conducted in
      the
      Premises by the proposed
      assignee or subtenant shall not require any alterations, installations,
      improvements, additions
      or other physical changes to be performed, or made to, any portion of the
      Building or the Real Property other than the Premises; and

     

    (x)       
      The
      proposed assignee or subtenant shall not be
      any
      entity which is entitled to
      diplomatic
      or sovereign immunity or which is not subject to service of process in the
      State
      of New
      York
      or to the jurisdiction of the courts of the
      State
      of
      New York and the United States located
      in
      New
      York
      County.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    4.08    
      Any consent of Landlord under this Article shall be subject to the terms of
      this
      Article and conditioned upon there being no default by Tenant, beyond any grace
      period, under
      any
      of the terms, covenants and conditions of this Lease at the time that Landlord's
      consent to
      any
      such subletting or assignment is requested and on the date of the commencement
      of the term of
      any
      proposed sublease or the effective date of any proposed assignment. Tenant
      acknowledges and
      agrees that no assignment or subletting shall be effective unless and until
      Tenant, upon
      receiving
      any necessary Landlord's written consent (and unless it
      was
      theretofore delivered to Landlord)
      causes a duly executed copy of
      the
      sublease or assignment to be delivered to Landlord within
      ten (10) days after execution thereof. Any such sublease shall provide that
      the
      sublessee shall
      comply
      with
      all
      applicable terms and conditions of
      this
      Lease to
      be
      performed by
      the
Tenant
      hereunder.
      Any such assignment of this Lease shall contain an assumption by the assignee
      of
      all of
      the
      terms, covenants
      and conditions of this Lease to be
      performed
      by the Tenant. In addition to
      the
      foregoing, as
      a
      condition to
      such
      consent, Landlord may require Tenant to deposit additional security in an amount
      equal to fifty (50%) percent of the
      security
      then
      on
      deposit with
      Landlord
      hereunder
      in order to secure performance of the obligations of Tenant accruing
from
      and
      after
the
      commencement
      date of any
      proposed
      sublease or the
      effective
      date of
      any
      proposed assignment.

     

     4.09    
      A.      Anything
      hereinabove
      contained to
      the
contrary
      notwithstanding,
      Landlord's
      consent shall
      not
      be
      required and
      Landlord's
      right of recapture and/or termination,
      as otherwise
      provided
      for in
      this
      Article
      4, shall not
      apply
      in the event
      of
      an assignment
      of this Lease,
      or
      sublease
      of all or part
      of
      the Premises,
      to the parent of
      Tenant or
      to
      a
      wholly-owned subsidiary or
      affiliate
      of
      Tenant
or
      of
      said
      parent of Tenant, provided that the net
      worth
of
      transferor or sublessor, after
      such transaction, is not
      less
      than
its
      net
      worth
as
      of
(a)
      the
      Commencement Date or
      (b)
      the
      day
immediately
      prior to such transaction, whichever is greater, and provided also
      that
Landlord
      receives
      prior
      written notice thereof
      including reasonable
      supporting
      documentation
      regarding all
      of
      the foregoing
      and finally provided
      that any
      such
      transaction complies
      with
      the
other
      provisions
      of
      this
      Article.

     

     
      B.      Anything
      hereinabove
      contained to
      the
contrary
      notwithstanding,
      Landlord's
      consent shall not be required and
      Landlord's
      right
      of
      recapture
      and/or termination, as otherwise
      provided
      for in
      this
      Article 4, shall
      not
      apply in
      the
event
      of
an
      assignment of
      this
      Lease, or
      sublease of all
      or
      part
      of
      the
Premises,
      to any
      corporation (i)
      to
      which
substantially
      all the
      assets
      of
      Tenant
      are transferred
      or (ii)
      into
      which Tenant
      may be merged or
      consolidated,
      provided that
      the
      net worth,
      experience and
      reputation
      of such transferee or
      of
      the
resulting
      or
      surviving
      corporation,
      as
      the
      case
      may be, is
      equal
      to or
      greater than
      the
      net worth experience and reputation of Tenant and
      of
any
      guarantor of
      this
      Lease (if
      applicable)
      immediately prior to
      such
      transfer
      and
      provided, also, that any
      such
      transaction complies
      with the other
      provisions of this
      Article.

     

    4.10    
      If Landlord shall
      not
      have
      accepted Tenant' s Recapture Offer hereunder and Landlord
      has
      not
      elected to
      terminate
      this Lease, and Tenant effects any
      assignment
      or
      subletting
      (other
      than
      pursuant to Section 4.09 above), then Tenant thereafter shall
      pay
      to Landlord
      a sum
      equal
      to
      fifty
      (50%)
      percent
      of (a)
      any
      rent
      or other consideration payable to Tenant by
      any
      subtenant
      (after
      deducting
      the cost of Tenant, if
      any,
      in effecting
      the subletting or assignment, for reasonable alteration costs, advertising
      expenses, brokerage commissions and legal fees)
      which
      is
      in
      excess
      of the
      rent
      allocable
      to the subleased space which is then
      being
      paid by
      Tenant
      to

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    Landlord
      pursuant to the terms hereof, and (b) any other profit or gain realized by
      Tenant (after deducting
      the cost of Tenant, if any, in effecting the subletting or assignment, for
      reasonable alteration
      costs, advertising expenses, brokerage commissions and legal fees not previously
      deducted
      above) from any such subletting or assignment. The foregoing amounts shall
      be
      payable to
      Landlord only if, as and when, the same are received by Tenant from said
      assignee or sublessee.

     

    4.11.    
      In no event shall Tenant be entitled to make, nor shall Tenant make, any
claim,
      and Tenant hereby waives any claim. for money damages (nor shall Tenant claim
      any money
      damages by way of set-off, counterclaim or defense) based upon any claim or
      assertion by Tenant that Landlord has unreasonably withheld or unreasonably
      delayed its consent or approval to a
      proposed assignment or subletting as provided for in sections 4.02 and 4.07
      of
      this Article. Tenant's
      sole remedy shall be an action or proceeding to enforce any such provision,
      or
      for specific
      performance, injunction or declaratory judgment.

     

    4.12    
      Notwithstanding anything to the contrary herein contained, Tenant shall
      be
permitted
      to license
      up
      to
      twenty five
      (25%) percent of the Premises for
      "desk
      space for uses
      permitted
      under this Lease only,
      provided
      that
      (i)
any
      such
      offices or
      workstations
      do not have separate entrances
      to the
      public corridor, (ii)
      Landlord
      is delivered advance
      notice
      of
      each
      such
      licensing
      including,
      without limitation, the
      name,
      address and bank references of each such
      licensee and
      the
material
      terms and conditions
      of each such
      license, and (iii)
      each such license otherwise
      complies
      with the
      provisions
      of
      this
Lease.

     

    ARTICLE
      5

     

    DEFAULT

     

    5.01    
      Landlord may
      terminate
      this Lease on five
      (5)
      days'
      notice:
      (a)
      if
      Fixed
      Annual
      Rent or
      Additional
      Rent is not paid within five (5) days after
      written
      notice from Landlord; or
      (b)
if
      Tenant
      shall
      have
      failed to
      cure a
default
      in the performance of any covenant of this Lease (except
      the payment of Rent), or
      any
      rule
      or regulation hereinafter set forth,
      within
      fifteen (15) days
      after written notice
      thereof
      from Landlord, or if default cannot be completely cured in such time,
      if
      Tenant shall not
      promptly
      proceed to
      cure
      such
      default within said fifteen (15)
      days, or shall
      not
      complete the
      curing
      of
      such default with due diligence: or
      (c)
when
      and
      to the extent
      permitted
      by law, if a petition
      in
      bankruptcy shall be filed by or
      against
      Tenant or
      if
      Tenant
shall
      make
      a
general
      assignment for
      the
      benefit of creditors, or receive the benefit of any insolvency or
      reorganization
      act; or (d)
      if
      a
      receiver or trustee is appointed for any
      portion
      of
      Tenant's
      property and
      such
      appointment
      is not
      vacated
      within twenty-five (25) days; or
      (e)
if
      an
      execution
      or attachment
      shall be issued under which the Premises shall be taken or occupied or attempted
      to
      be
      taken
      or
      occupied
      by
      anyone
      other than Tenant; or (f) if the Premises become and remain deserted
for
      a
      period of
      fifteen
      (15)
      days;
      or
      (g) if Tenant shall default beyond any grace period under any other
      lease
      between Tenant and Landlord. At the expiration of the five (5) day notice
      period, this
      Lease
      and
      any
      rights of renewal or extension thereof shall terminate as completely as if
      that
were
      the
      date
      originally
      fixed for the
      expiration
      of the Term of this
      Lease,
      but Tenant shall remain liable

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    as
      hereinafter provided.

     

    5.02    
      In the event that Tenant is in arrears for Fixed Annual Rent or any item of
      Additional
      Rent, Tenant waives its right, if any, to designate the items against which
      payments made
      by
      Tenant are to be credited and Landlord may apply any payments made by Tenant
      to
      any items
      which Landlord in sole
      discretion may elect irrespective of
      any
      designation by Tenant as
      to
      the
      items against
      which
      any
such
      payment
      should
      be
      credited.

     

    5.03    
      Tenant shall not seek to
      remove
      and/or consolidate any summary proceeding brought
      by Landlord with any action commenced by
      Tenant
      in
      connection
      with
      this
      Lease or Tenant's
      use and/or
      occupancy of the
      Premises.

     

    5.04    
      In the event of a
      default
      by Landlord hereunder, no property or assets of
      Landlord,
      or
      any
      principals, shareholders, officers, directors, partners or
      members
      of
      Landlord,
      whether
      disclosed
      or undisclosed, other than the Building in which the
      Premises
      are
      located
      and
      the
      land
upon
      which the
      Building is
      situated,
      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
      Tenant's
      use
      and
      occupancy of
      the
Premises.

     

    ARTICLE
      6

     

    RELETT1NG,
      ETC. 

     

    6.01    
      If Landlord shall re-enter the Premises on the default of
      Tenant,
      by summary
      proceedings
      or
      otherwise:
      (a)
      Landlord
      may re-let the Premises or any
      part
thereof,
      as
      Tenant's agent,
      in
the
      name
of
      Landlord, or otherwise,
      for a term shorter
      or longer than
      the
      balance of
      the
      term
      of
      this Lease, and
      may
      grant
      concessions or free rent;
      (b)
Tenant
      shall
      pay
      Landlord any deficiency
      between
      the rent
      hereby
      reserved and the net amount of
      any
      rents
      collected
      by Landlord for
      the
remaining
      term of this
      Lease,
      through such re-letting. Such deficiency shall become due
      and
      payable
      monthly, as
      it is
determined.
      Landlord shall have no
      obligation
      to re-let the Premises,
      and
      its
      failure
      or refusal
      to do so, or failure
      to
      collect rent on
      re-letting,
      shall
      not
      affect Tenant's
      liability
      hereunder. In
      computing the net amount of rents
      collected
      through such re-letting, Landlord
      may deduct
      all
      expenses incurred
      in obtaining possession or re-letting the Premises, including
      legal expenses and
      fees,
      brokerage fees, the cost of restoring the
      Premises
      to good order, and
      the
      cost
of
      all
alterations
      and
      decorations
      deemed necessary by Landlord to
      effect
reletting.
      ln
      no
      event shall Tenant be entitled to a credit or repayment for rerental income
      which exceeds the
      sums
      payable by Tenant hereunder or which covers a period after the original term
      of
this
      Lease;
      (c)
      Tenant
      hereby expressly waives
      any
      right
      of redemption granted by any present or future law.
      "Re-enter" and
      "re-entry" as
      used
      in this
      Lease are
      not
      restricted to
      their
      technical legal meaning. In
      the
      event of a breach or threatened breach of any of
      the
      covenants
      or provisions
      hereof, Landlord
      shall have the right
      of
      injunctive relief.
      Mention
      herein of any particular remedy
      shall not
      preclude Landlord from any other available remedy; (d)
      Landlord
      shall
      recover as liquidated
      damages,
      in addition
      to
      accrued rent and other charges, if
      Landlord's
      re-entry
      is the
      result of

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    Tenant's
      bankruptcy, insolvency, or reorganization, the full rental for the maximum
      period allowed
      by any act relating to bankruptcy, insolvency or reorganization.

     

    6.02    
      lf Landlord re-enters the Premises for any cause, or if Tenant abandons the
      Premises,
      or after the expiration of the term of this Lease, any property left in the
      Premises by Tenant
      shall be deemed to have been abandoned by Tenant, and Landlord shall have the
      right to retain
      or
      dispose of such property in any manner without any obligation to account
      therefor to Tenant.
      If Tenant shall at any time default hereunder, and if Landlord shall institute
      an action or summary proceeding against Tenant based upon such default, then
      Tenant will reimburse Landlord for the legal expenses and fees thereby incurred
      by Landlord.

     

    ARTICLE
      7

     

    LANDLORD
      MAY CURE DEFAULTS

     

    7.01    
      If Tenant shall default in performing any covenant or condition of this
Lease,
      after notice and beyond any applicable cure period, Landlord may perform the
      same for the account of Tenant, and if Landlord, in connection therewith, or
      in
      connection with any default by Tenant, makes any expenditures or incurs any
      obligations for the payment of money, including but not
      limited to reasonable attorney's fees, such sums so paid or obligations incurred
      shall be deemed
      to
      be Additional Rent hereunder, and shall be paid by Tenant to Landlord
      within fifteen (15)
      days
      of rendition of any bill or statement therefor, and if Tenant's lease term
      shall
      have expired
      at the time of the making of such expenditures or incurring of such obligations,
      such sums shall be recoverable by Landlord as damages.

     

    ARTICLE
      8

     

    ALTERATIONS

     

    8.01    
      Tenant shall make no decoration, alteration, addition or improvement in the
      Premises, without the prior written consent of Landlord which consent shall
      not
      be unreasonably withheld,
      conditioned or delayed, and then only by contractors or mechanics and in such
      manner and time, and with such materials, as reasonably approved by Landlord.
      All alterations, additions or
      improvements to the Premises, including air-conditioning equipment and duct
      work, except movable office furniture and trade equipment installed at the
      expense of Tenant, shall, unless Landlord
      elects otherwise in writing, become the property of Landlord, and shall be
      surrendered with
      the
      Premises, at the expiration or sooner termination of the term of this Lease.
      Any
      such alterations,
      additions and improvements which Landlord shall designate shall be removed
      by
Tenant
      and any damage repaired, at Tenant's expense, prior to the expiration of
      this Lease. Notwithstanding anything contained herein to the contrary, Tenant
      shall not be required to obtain Landlord's prior written consent or approval
      for
      any nonstructural, purely decorative, interior improvements to the Premises
      (including painting, carpeting or the installation of wall
      coverings)

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    provided,
      however that said improvements do not consist of changes or modifications to
      any
Building
      plumbing, electrical, air conditioning or other Building wide
      systems.

     

    8.02    
      Anything hereinabove to the contrary notwithstanding, Landlord will not
unreasonably
      withhold or delay approval of written requests of Tenant to make nonstructural
      interior
      alterations, decorations, additions and improvements (herein referred to as
      "Alterations")
      in
      the
      Premises, provided that such Alterations do not affect utility services or
      plumbing and electrical lines or other systems of the Building and do not affect
      and are not visible from any portion
      of the Building outside of the Premises. All Alterations shall be performed
      in
      accordance with
      the
      following conditions:

     

    (i)       
      Prior
      to
      the commencement of any Alterations costing more than $15,000.00,
      Tenant shall first submit to Landlord for its approval detailed dimensioned
      coordinated
      plans and specifications, including layout, architectural, mechanical,
      electrical, plumbing and structural drawings for each proposed Alteration.
      Landlord shall be given, in writing,
      a good description of all other Alterations.

     

    (ii)      
      All
      Alterations in and to the Premises shall be performed in a good and workmanlike
      manner and in accordance with the Building's rules and regulations governing
      Tenant
      Alterations. Prior to the commencement of any such Alterations, Tenant shall,
      at
      its sole cost
      and
      expense, obtain and exhibit to Landlord any governmental permit required in
      connection with such Alterations. In order to compensate Landlord for its
      general conditions and the costs incurred
      by Landlord in connection with Tenant's performance of Alterations in and/or
      to
      the Premises
      (including, without limitation, the costs incurred by Landlord in connection
      with the coordination of Alterations which may affect systems or services of
      the
      Building or portions of the Building outside of the Premises), Tenant shall
      pay
      to Landlord a fee equal to five (5%) percent of the
      cost
      of such Alterations. Such fee shall be paid by Tenant as Additional Rent
      hereunder within ten
      (10)
      days following receipt of an invoice therefor.

     

    (iii)     
      All
      Alterations shall be done in compliance with all other applicable provisions
      of this Lease and with all applicable laws, ordinances, directions, rules and
      regulations of
      governmental authorities having jurisdiction, including, without limitation,
      the
      Americans with Disabilities
      Act of 1990 and New York City Local Law No. 57/87 and similar present or future
      laws,
      and
      regulations issued pursuant thereto, and also New York City Local Law No. 76
      and
similar
      present or future laws, and regulations issued pursuant thereto, on abatement,
      storage, transportation
      and disposal of asbestos and other hazardous materials, which work, if required,
      shall
      be
      effected at Tenant's sole cost and expense, by contractors and consultants
      approved by Landlord
      and in strict compliance with the aforesaid rules and regulations and with
      Landlord's rules
      and
      regulations thereon.

     

    (iv)      
      All
      work
      shall be performed by duly licensed and insured professionals whose
      presence at the Premises or the Building will not result in any labor unrest,
      dispute, slowdown,
      strike or disharmony whatsoever by labor rendering or scheduled to render
      services at or
      within, or delivering goods or materials to the Building, in which event Tenant
      shall immediately
      and permanently cease its use of the professional(s) whose presence at the
      Premises or

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    the
      Building was the basis for such unrest, slowdown or strike. Notwithstanding
      anything contained
      herein to the contrary, if the use by Tenant of any contractor, subcontractor,
      vendor, supplier
      or any other party causes or threatens to cause or create any work stoppage,
      picketing, labor
      disruption, dispute or disharmony of any nature whatsoever, Tenant shall
      immediately discontinue
      the use of such party and take such other remedial measures as may be necessary
      in order
      to
      restore labor harmony.

     

    (v)       
      Tenant
      shall keep the Building and the Premises free and clear of all liens
for
      any
      work or material claimed to have been furnished to Tenant or to the
      Premises.

     

    (vi)      
      Prior
      to
      the commencement of any work by or for Tenant, Tenant shall furnish
      to Landlord certificates evidencing the existence of the following
      insurance:

     

    (a)       
      Workmen's compensation insurance covering all persons employed for
      such
      work and with respect to
      whom
      death or bodily injury claims could be asserted against Landlord,
      Tenant or the Premises.

     

    (b)       
      Broad
      form general liability insurance written on an occurrence basis naming
      Tenant as
      an
      insured
      and naming Landlord and its designees as additional insureds, with limits
      of
      not
      less than $3,000,000 combined single limit for personal injury in
      any
      one
      occurrence, and
      with
      limits of not less than $500,000 for property damage (the foregoing limits
      may
      be revised from
      time
      to
      time
      by Landlord to
      such
      higher limits as Landlord from time to time reasonably requires).
      Tenant, at its sole cost and expense, shall cause all such insurance to be
      maintained at
      all
      time
      when the work to be performed for or by Tenant is in progress. All such
      insurance shall be
      obtained from a company authorized to do business in
      New
      York
      and shall provide that
      it
cannot
      be
      canceled
      without thirty (30) days prior written notice to Landlord. All polices, or
      certificates
      therefor, issued
      by
      the
      insurer
      and bearing notations evidencing the payment of
      premiums,
      shall be delivered to Landlord. Blanket coverage shall be acceptable, provided
      that coverage
      meeting the requirements of this paragraph is assigned to Tenant's location
      at
      the
      Premises.

     

    (vii)  In
      granting its consent to any Alterations, Landlord may impose such conditions
      as
      to
      guarantee of completion (including, without limitation, requiring Tenant
to
      temporarily
      post
      additional
      security or a bond to insure the completion of such Alterations, payment,
      restoration or otherwise), as Landlord may reasonably require.

     

    (viii)     
      All
      work
to
      be
      performed by Tenant shall be done in a manner which will not
      interfere with or
      disturb
      other tenants and occupants of the Building.

     

    (ix)      
      The
      review and/or approval by Landlord, its agents, consultants and/or
      contractors,
      of
      any
Alteration
      or of plans and specifications therefor and the coordination of such
Alteration
      work with the Building, as described in
      part
      above, are solely for the benefit of
      Landlord,
      and neither Landlord nor any of its agents, consultants or contractors shall
      have any duty
      toward Tenant; nor shall Landlord or any of its agents, consultants
      and/or
      contractors be deemed
      to
      have made any representation or warranty to Tenant, or
      have
      any
      liability
      with respect

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    to
      the
      safety, adequacy, correctness, efficiency or compliance with laws of any plans
      and specifications,
      Alterations or any other matter relating thereto.

     

    (x)       
      Promptly following the substantial completion of any Alterations, Tenant
shall
      submit to Landlord: (a) one (1) sepia and one (1) copy on floppy disk (using
      a
      current version of
      Autocad or such other similar software as is then commonly in use) of final,
      "as-built" plans for
      the
      Premises showing all such Alterations and demonstrating that such Alterations
      were performed
      substantially in
      accordance with
      plans and specifications first approved by Landlord and (b)
      an
itemization
      of Tenant's
      total construction
      costs,
      detailed
      by contractor, subcontractors, vendors
      and materialmen; bills, receipts,
      lien
      waivers and releases
      from
      all
      contractors, subcontractors,
      vendors and materialmen; architects' and Tenant's certification of
      completion,
      payment
      and
      acceptance, and all governmental approvals
      and
      confirmations of completion for such
      Alterations.

     

    ARTICLE
      9

     

    LIENS

     

    9.01    
      Prior to
      commencement of
      its
work
      in
the
      Premises,
      Tenant shall
      obtain
      and
      deliver
      to Landlord a
      written
      letter of authorization, in form satisfactory to
      Landlord's
      counsel, signed
      by
      all
      architects, engineers and designers to become involved in such
      work,
      which shall confirm
      that any of their drawings
      or
      plans
      are to be removed from any tiling with
      governmental
      authorities
      on
      request of Landlord, in
      the
event
      that said architect,
      engineer
      or designer thereafter
      no
      longer
is
      providing
      services
      with
      respect to the Premises. With respect to
      contractors, subcontractors,
      materialmen
      and
      laborers,
      and
      architects, engineers and
      designers,
      for all
      work
      or
materials
      to
      be
      furnished
      to Tenant
      at
      the
      Premises, Tenant agrees to
      obtain
      and
      deliver
      to
      Landlord
      written and
      unconditional
      waiver of
      mechanics
      liens upon the Premises or
      the
Building
      after
      payments to the contractors, etc.,
      subject to
      any
      then applicable provisions of
      the
      Lien
Law.
      Notwithstanding
      the foregoing, Tenant at
      its
      expense shall
      cause any
      lien
filed
      against the Premises or
      the
      Building, for work or
      materials
      claimed to have
      been
      furnished to Tenant, to be
      discharged
      of
      record
      within
      ten
      (10)
      days
      after notice thereof.

     

    ARTICLE
      10

     

    REPAIRS

     

    10.01    
      Tenant
      shall take
      good
      care of the Premises
      and the fixtures and appurtenances
      therein, and shall
      make all non-structural
      repairs necessary to keep them in
      good
      working order
      and
      condition, and
      all
structural
      repairs when those
      are
necessitated
      by
      the
      act,
      omission
      or negligence
      of Tenant or its
      agents,
      employees, invitees or contractors,
      subject
      to the provisions
      of Article 11 hereof. During the term of this Lease, Tenant may have the
use
      of
      any
air-conditioning
      equipment servicing the
      Premises,
      subject
      to
      the
      provisions of Article 35 of this Lease,
      and shall reimburse Landlord, in accordance with
      Article 41 of this Lease,
      for
      electricity

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    consumed
      by the equipment. The
      exterior walls and
      roofs
      of
      the Building, the
      mechanical
      rooms, service
      closets,
      shafts, areas above any hung ceiling and the
      windows
      and
      the
      portions
      of
      all
      window
      sills outside
      same are not
      part
      of the Premises demised
      by
      this
      Lease, and
      Landlord hereby
      reserves all rights to such parts
      of
      the
      Building. Tenant
      shall
      not
      paint, alter, drill into
      or
      otherwise
      change the
      appearance of
      the
      windows including,
      without
      limitation,
      the
      sills,
      jambs, frames,
      sashes,
      and meeting rails.

     

    10.02    
      Landlord
      shall maintain
      and repair the structural
      portions of
      the
      Building and all
      Building
      systems and equipment
      up to the point
      of
entry
      to
      the
      Premises, at its
      cost
      and expense,
      except where the
      need
      for
such
      maintenance or repairs
      is caused
      by
      the
      negligence or willful
      misconduct of
      Tenant, its
      members,
      partners,
      directors,
      officers, employees,
      representatives,
      servants,
      invitees,
      permitted
      subtenant or
      permitted licensees, in
      which
      event such maintenance
      and repair
      shall be performed
      at Tenant's
      cost
      and
      expense,
      payable as additional
      rent
      hereunder.

     

    ARTICLE
      11

     

    FIRE
      OR
      OTHER CASUALTY

     

    11.01    
      Damage
      by
      fire
      or
      other
      casualty to
      the
      Building and
      to
      the
      core and shell of the
      Premises (excluding
      the tenant improvements and
      betterments and Tenant's
      personal property) shall
      be
      repaired with
      due
      diligence at
      the
      expense of
      Landlord
      (“Landlord's
      Restoration
      Work”),
      but without
      prejudice to
      the
      rights of subrogation,
      if any,
      of
      Landlord's insurer to the extent
      not waived
      herein.
      Landlord
      shall not be
      required to
      repair
      or
      restore any of Tenant's property
      or any
      alteration,
      installation or leasehold improvement made
      in
      and/or
      to the
      Premises. If,
      as a
      result of such
      damage
      to
      the
      Building or
      to
      the
core
      and
      shell
      of
      the Premises, the Premises are
      rendered untenantable, the rent shall
      abate
      in
      proportion to the
      portion
      of the Premises not usable
      by
      Tenant from the
      date
      of such fire or
      other
      casualty until Landlord' s Restoration Work is substantially
      completed. Landlord shall not
      be
      liable
      to Tenant for any delay in performing
      Landlord's
      Restoration Work, Tenant's
      sole remedy being
      the
      right
      to
      an
      abatement of
      Rent,
      as
provided
      above.
      Tenant shall cooperate
      with Landlord
      in
      connection with the
      performance
      by Landlord
      of Landlord's
      Restoration Work. If
      the
      Premises are
      rendered
      wholly
      untenantable by fire or other
      casualty and
      if
      Landlord
      shall decide not to restore the Premises, or if the Building
      shall
      be
      so damaged that
      Landlord shall
      decide
      to
demolish
      it
      or
not
      to
rebuild
      it (whether or
      not
      the
      Premises have
      been
      damaged), Landlord may within
      ninety
      (90)
      days
      after such fire
      or
      other cause
      give
      written notice to Tenant
      of
      its election that
      the
term
      of
this
      Lease
      shall automatically expire
      no
      less than ten
      (10)
      days
      after such
      notice
      is
      given. Notwithstanding the
      foregoing,
      each party
      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 releasers'
      insurance
      policies
      contain a clause
      providing that such
      a
release
      or
      waiver
      shall not invalidate the insurance and
      also,
      provided that such a
      policy
      can be obtained without
      additional premiums. Tenant
      hereby expressly
      waives the
      provisions of
      Section
      227 of
      the

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    Real
      Property Law and agrees that the foregoing provisions of this Article shall
      govern and control in
      lieu
      thereof.

     

    11.02    
      In the event that the Premises has been damaged or destroyed and this Lease
      has
      not
      been terminated in accordance with the provisions of this Article, Tenant shall
      (i) cooperate
      with Landlord in the restoration of the Premises and shall remove from the
      Premises as promptly
      as reasonably possible all of Tenant's salvageable inventory, movable equipment,
      furniture
      and other property and (ii) repair the damage to the tenant improvements and
      betterments and
      Tenant's personal property and restore the Premises within one hundred eighty
      (180) days following the date upon which the core and shell of the Premises
      shall have been substantially repaired
      by Landlord.

     

    11.03    
      In the event that the Premises and/or access thereto are rendered substantially
      untenantable or unusable, as the case may be, due to fire or other casualty
      during the last
      year
      of the Term of this Lease and/or Landlord has not restored or repaired the
      Premises or access
      thereto, as the case may be, within one hundred and eighty (180) days after
      such
      fire or casualty
      then, and in such event, Tenant may elect to cancel this Lease upon written
      notice to Landlord
      within thirty (30) days after the end of such one hundred and eighty (180)
      day
      period and the
      term
      of this Lease shall expire on the date set forth therein which shall be not
      less
      than ten (10) days
      after the date such notice is given (the "Cancellation Date") provided that
      Tenant surrenders to
      Landlord possession of the Premises on or before the Cancellation
      Date.

     

    ARTICLE
      12

     

    END
      OF TERM

     

    12.01    
      Tenant shall surrender the Premises to Landlord at the expiration or sooner
      termination
      of this Lease in good order and condition, except for reasonable wear and tear
      and damage by fire or other casualty, and Tenant shall remove all of its
      property. Tenant agrees it shall
      indemnify and save Landlord harmless against all costs, claims, loss or
      liability resulting from
      delay by Tenant in so surrendering the Premises, including, without limitation,
      any claims made
      by
      any succeeding tenant founded on such delay. The parties recognize and agree
      that the damage
      to
      Landlord resulting from any failure by Tenant timely to surrender the Premises
      will be substantial,
      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
      Premises is not
      surrendered to Landlord within one (1) day after the date of the expiration
      or
      sooner termination
      of the Term of this Lease, then Tenant will pay Landlord as liquidated damages
      for each month and for each portion of any month during which Tenant holds
      over
      in the Premises after
      expiration or termination of the Term of this Lease, a sum equal to two (2)
      times the average Rent
      and
      Additional Rent which was payable per month under this Lease during the last
      six
months
      of
      the Term thereof. The aforesaid obligations shall survive the expiration or
      sooner termination
      of the Term of this Lease. At any time during the Term of this Lease, Landlord
      may exhibit
      the Premises to prospective purchasers or mortgagees of Landlord's interest
      therein. During
      the last year of the term of this Lease, Landlord may exhibit the Premises
      to
      prospective tenants.

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      13

     

    SUBORDINATION
      AND ESTOPPEL, ETC.

     

    13.01    
      This Lease is and shall be subject and subordinate to all present and future
      ground
      leases, underlying leases and to all subleases of the entire premises demised
      by
      that certain ground
      lease (hereinafter referred to as the "Mesne Lease") dated December 30, 1957
      and
recorded
      in the office of the Register of the City of New York in the County of New
      York
      on December
      31, 1957, in Liber 5024 of Conveyances, Page 430 of which the premises hereby
      demised
      form a part (the Mesne Lease and any or all present and future ground leases,
      underlying leases
      arid subleases of the entire premises demised by the Mesne Lease are hereunder
      referred to as
      the
      "ground leases" and the lessors and lessees thereunder are hereinafter referred
      to respectively
      as the "ground lessors" and "ground lessees" ) and to all renewals,
      modifications, replacements
      and extensions of the ground leases, and to all present and future mortgages
      affecting such
      ground leases (such mortgages are hereinafter referred to as the "mortgages"
      and
      the mortgagees
      thereunder are hereinafter referred to as the "the mortgagees") including,
      without limitation,
      that certain Amended and Restated indenture of Leasehold Mortgage, Security
      Agreement,
      Financing Statement, Fixture Filing and Assignment of Leases, Rents and Security
      Deposits, dated as of May 21, 1999 by and between SLG Graybar Mesne Lease LLC
      and SLG Graybar
      Sublease LLC, as mortgagor, and Midland Loan Services, Inc., as mortgagee,
      and
      to all renewals, modifications, replacements and extensions of the
      mortgages.

     

    13.02    
      Notwithstanding the subordination of this Lease to all ground leases and
      mortgages, this Lease shall not terminate or be terminable by Tenant by reason
      of the expiration or earlier
      termination or cancellation of any ground lease in accordance with its terms
      or
      by reason of the foreclosures of any mortgage, except that this lease may be
      terminated if Tenant is named as a party
      and
      served with process in a summary or other proceeding brought by the lessor
      under
      the Mesne
      Lease (hereinafter referred to as the "Mesne Lessor") for the possession of
      the
      premises demised
      by the Mesne Lease or the space occupied by Tenant, or in such proceeding
      brought with the
      written consent of the Mesne Lessor delivered to Tenant, and a final order
      or
      judgment is entered,
      and a warrant for possession of such space issued and executed against the
      defendants or respondents in such proceedings.

     

    13.03    
      Tenant agrees that if this Lease terminates, expires or is canceled for any
      reason
      or
      by any means whatsoever (other than by a summary or other proceeding brought
      by
      the Mesne Lessor
      or
      with the Mesne Lessor's written consent delivered to Tenant, in which summary
      or
      other
      proceeding Tenant is made a party and in which a final order or judgment is
      entered and warrant for possession is issued and executed against Tenant) and
      Mesne Lessor or a ground lessor so
      elects
      by written notice to Tenant, this lease shall automatically be reinstated for
      the balance of the
      term
      which would have remained but for such termination, expiration or cancellation,
      at the same
      rental, and upon the same agreements. covenants, conditions, restrictions and
      provisions herein contained, with the same rental, and upon the same agreements,
      covenants, conditions, restrictions
      and provisions herein contained, with the same force and effect as if no such
      termination,
      expiration or cancellation had taken place. Tenant covenants to execute and
      deliver

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    any
      instrument required to confirm the validity of the foregoing. Anything herein
      contained to the contrary
      notwithstanding,
      this
      lease
      shall
      not
be
      deemed
      to
      be
automatically
      reinstated
      as aforesaid,
      nor
      shall
      Tenant be obligated to
      execute and
      deliver
      any
      instrument
      confirming
      such reinstatement,
      if
      Tenant
has
      delivered to
      the
      Mesne Lessor and
      any
      ground lessor
      so
      electing a
      notice
that
      in
      Tenant's opinion this lease has so terminated,
      expired or
      been
      canceled, and
      neither
      the
      Mesne
      Lessor
      nor
      such
other
      ground lessor
      has,
      within thirty (30)
      days
      after receipt of
      such
notice
      from
      Tenant,
      delivered notice
      to
Tenant
      of
      its election automatically
      to
      reinstate this
      lease.

     

    13.04    
      Tenant hereby consents to any and
      all
      assignment
      of
      Landlord's interest in this Lease to any ground lessor or mortgagee as
collateral
      security
      for the payment
      of the
      ground rent or
      monies
due
      under
any
      mortgage.
      Tenant agrees
      to
      attorn
      to
      and
      pay
      rent to any such ground
      lessor
      or
      mortgagee
      in accordance
      with
      the
      provisions of
      any
such
      assignment.

     

    13.05    
      Tenant
      agrees that no act, or
      failure to act, on the
      part
      of
      Landlord, which would
      entitle Tenant under
      the
      terms
      of this Lease, or
      by
      law
      to be
      relieved of
      Tenant's
      obligations
      hereunder
      or to terminate
      this lease,
      shall result
      in
      a
      release
or
      termination of such obligations or termination
      of this
      lease unless (i)
      Tenant shall have first
      given written notice
      of
      Landlord's act or failure
      to
      act to
the
      ground
      lessors under all then existing
      ground leases, to
      all
then
      existing
      mortgagees
      who
      have
      requested such
      notice
      from Tenant, and to Midland
      Loan Services,
      Inc.,
      as
mortgagee,
      at (i) 10851 Mastin,
      Overland
      Park,
      Kansas 662.10,
      Attn.:
      Philip
      Frost, Vice President/Portfolio
      Management,
      specifying the act
      or
      failure to act on the
      part
      of
      Landlord
      which could or would give basis to Tenant's
      rights
      and
      (ii)
      the
      ground
      lessors and such
      mortgagees, after
      receipt of such
      notice,
      have failed or refused
      to correct
      or
      cure
the
      condition complained of within
      a
      reasonable
      time
      thereafter but nothing
      herein contained shall
      be
      deemed
      to
impose
      any obligation
      on
      any
ground
      lessor
      or
such
      mortgagee
      to
      correct or cure any
      such
      condition.

     

    13.06    
      This Lease may
      not
      be
      modified
      or
      amended
      so
      as to
reduce
      the
      rent, shorten
      the
      term,
      or otherwise
      materially affect the rights
      of
      Landlord
      hereunder,
      or be
      canceled
      or
      surrendered
      except as provided in Section 13,05 this Article without
      the prior written
      consent in each
      instance of
      the
ground
      lessors and
      of
      any
      mortgagees
      whose
      mortgages
      shall require such consent.
      Any
      such
modification,
      agreement,
      cancellation
      or surrender made without such prior written
      consent shall be
      null
      and void.

     

    13.07    
      From time
      to
time,
      Tenant,
      on at least ten (10)
      days' prior written request by Landlord, shall deliver to Landlord a
      statement in writing certifying
      that this Lease
      is
      unmodified and in
      full
force
      and
      effect (or if
      there
      shall have been modifications, that the same is
      in
      full force and
      effect
      as
      modified
      and stating the modifications) and
      the
      dates to which
      the
Rent
      and
      other charges have
      been
      paid and stating whether or not
      Landlord
      is in default in
      performance of any covenant,
      agreement
      or
      condition
      contained
      in this Lease
      and,
      if
so,
      specifying each
      such
      default. In
      the
      event
that
      Tenant shall fail to execute
      and
      deliver
      any
      such
instrument
      within
      ten (10) days after
      written request
      is
      made
      therefor, Landlord
      shall deliver an
      additional
      copy
      (marked "Second Notice") thereof to
      Tenant.
      In
      the
      event that Tenant, after the second notice,
      shall thereafter fail to either
      (i) execute
      and deliver
      any such instrument
      within ten
      (10)
      days after
      written request is
      made
      therefor or (ii)
      furnish
      within
      ten
      (10)
      days
after
      written
      request
      is
      made
      therefor.
      a
      bonafide
      written dispute
      of
      the
      contents of
      such
      instrument, containing proposed remediation language

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    thereafter
      failure to execute any revised subordination within ten (10) days of receipt
      of
      written request
      is made therefor, then hereby irrevocably constitutes and appoints Landlord
      as
      Tenant's attorney-in-fact to execute, acknowledge and deliver any such
      statements or certificates for and on behalf of Tenant.

     

    ARTICIE
      14

     

    CONDEMNATION

     

    14.01    
      If the whole or any substantial part of the Premises shall be condemned by
      eminent
      domain or acquired by private purchase in lieu thereof, for any public or
      quasi-public purpose,
      this Lease shall terminate on the date of the vesting of title through such
      proceeding or purchase,
      and Tenant shall have no claim against Landlord for the value of any unexpired
      portion of
      the
      Term of this Lease, nor shall Tenant be entitled to any part of the condemnation
      award or private
      purchase price. If less than a substantial part of the Premises is condemned,
      this Lease shall
      not
      terminate, but Rent shall abate in proportion to the portion of the Premises
      condemned.

     

    ARTICLE
      15

     

    REQUIREMENTS
      OF
      LAW

     

    15.01   
      Tenant at its expense shall comply with all laws, orders and regulations of
      any
      governmental authority having or asserting jurisdiction over the Premises,
      which
      shall impose any violation, order or duty,
      upon
      Landlord or Tenant as a result of Tenant's particular manner of use
      or
      occupancy of the Premises, including, without limitation, compliance in the
      Premises with all
      City,
      State and Federal laws, rules and regulations on the disabled or handicapped,
      on
      fire safety
      and on hazardous materials. The foregoing shall not require Tenant to do
      structural work to the
      Building. Notwithstanding the foregoing, Landlord shall be responsible for
      the
      cost of curing any
      violation of law in the Premises, existing as a matter of public record as
      of
      the commencement of
      the
      Term of this Lease or for which Landlord has had actual knowledge of as of
      the
commencement
      of the term of this Lease.

     

    15.02    
      Tenant shall require every person engaged by him to clean any window in
the
      Premises from the outside, to use the equipment and safety devices required
      by
      Section 202 of the Labor Law and the rules of any governmental authority having
      or asserting jurisdiction.

     

    15.03     Tenant
      at its expense shall comply with all requirements of the New York Board
      of
      Fire Underwriters, or any other similar body affecting the Premises, and shall
      not use the Premises
      in a manner which shall increase the rate of fire insurance of Landlord or
      of
      any other tenant,
      over that in effect prior to this Lease. If Tenant's use of the Premises
      increases the fire insurance
      rate, Tenant shall reimburse Landlord for all such increased costs. That the
      Premises

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    are
      being
      used for the purpose set forth in Article 1 hereof shall not relieve Tenant
      from
      the foregoing
      duties, obligations and expenses.

     

    ARTICLE
      16

     

    CERTIFICATE
      OF OCCUPANCY

     

    16.01    
      Tenant will at no time use or occupy the Premises in violation of the
certificate
      of occupancy issued for the Building. The statement in this Lease of the nature
      of the business to be conducted by Tenant shall not be deemed to constitute
      a
      representation or guaranty by
      Landlord that such use is lawful or permissible in the Premises under the
      certificate of occupancy
      for the Building.

     

    ARTICLE
      17 

     

    POSSESSION

     

    17.01    
      lf Landlord shall be unable to give possession of the Premises on the
      Commencement Date because of the retention of possession of any occupant
      thereof, alteration or construction work, or for any other reason, Landlord
      shall not be subject to any liability for such failure. In such event, this
      Lease shall stay in full force and effect, without extension of its Term.
However,
      the Rent hereunder shall not commence until the Premises are available for
      occupancy by Tenant in the condition required by this Lease, as provided in
      Article 22 of the Lease. If delay in
      possession is due to work, changes or decorations being made by or For Tenant,
      or is otherwise caused
      by
      Tenant, there shall be no rent abatement and the Rent shall commence on the
      date
specified
      in this Lease. If permission is given to Tenant to occupy the Premises or other
      Premises prior
      to
      the date specified as the commencement of the Term, such occupancy shall be
      deemed to be
      pursuant to the terms of this Lease, except that the parties shall separately
      agree as to the obligation
      of Tenant to pay Rent for such occupancy. The provisions of this Article are
      intended to
      constitute an "express provision to the contrary" within the meaning of Section
      223(a), New York
      Real
      Property Law.

     

    ARTICLE
      18

     

    QUIET
      ENJOYMENT

     

    18.01    
      Landlord covenants that if Tenant pays the Rent and performs all of Tenant's
      other
      obligations under this Lease, Tenant may peaceably and quietly enjoy the
      Premises, subject to the terms, covenants and conditions of this Lease and
      to
      the ground leases, underlying leases and
      mortgages hereinbefore mentioned.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      19

     

    RIGHT
      OF ENTRY

     

    19.01    
      Tenant shall permit Landlord to erect, construct and maintain pipes, conduits
      and
      shafts in and through the Premises provided that they are concealed, erected
      along perimeter walls
      wherever possible
      and are
      installed
      in a
      manner
      which does not interfere with Tenant's use of the
      Premises.
      Landlord or
      its
      agents
      shall have
      the
      right
      to enter or
      pass
through
      the Premises
      upon
      reasonable oral notice to
      Tenant
at
      reasonable times and by reasonable force in
      the
      event of an
      Emergency
      Situation without
      notice to
      Tenant, by
      master
      key and,
      in
      the
      event of
      an
      emergency,
      by
      reasonable
      force
      or
      otherwise, to examine
      the
      same,
      and to
      make
such
      repairs,
      alterations
      or
      additions
      as
      it may
      deem necessary
      or desirable to the Premises or
      the
      Building, and
      to
      take
      all
      material into
      and
upon
      the
      Premises that may be
      required
      therefor.
      Landlord shall
      use
reasonable
      efforts to minimize
      interference with Tenant's
      normal
      business activities
      within the premises
      provided, however, that Tenant
      acknowledges
      and
      agrees that
      all
      work
      shall be performed
      on
      normal
      business days during
      normal
      business hours.
      Notwithstanding the
      foregoing,
      in
      the
      event
      that
      Tenant requests that Landlord make
      such
      repairs, alterations or additions during times
      other
      than ordinary business hours, and
      such
labor
      is
      then available,
      Tenant
      shall
      be
responsible
      for
      the
cost
      of
such
      overtime
      or
      premium
      labor
      charges as
      the
      case may be.
      Such
entry
      and
work
      shall not
      constitute
      an
      eviction of Tenant in whole or
      in
      part, shall
      not
      be
      grounds for
      any
abatement
      of
      Rent,
      and
      shall impose
      no
      liability on
      Landlord
      by
      reason
      of
      inconvenience or
      injury
      to Tenant's
      business. Landlord shall
      have the right
      at
      any time,
      without the same
      constituting
      an actual
      or
      constructive eviction, and
      without incurring
      any
      liability to Tenant, to
      change
      the
      arrangement
      and/or location of
      entrances or
      passageways, windows,
      corridors, elevators,
      stairs,
      toilets,
      or other
      public
      parts of
      the
      Building, and
      to
change
      the designation of rooms
      and
      suites and
      the
      name or
      number
by
      which
      the
      Building is known.

     

    ARTICLE
      20

     

    INDEMNITY

     

    20.01    
      Tenant shall indemnify,
      defend and save
      Landlord
      harmless from
      and
      against any
      liability or
      expense arising from
      the
      use
or
      occupation
      of
      the
Premises
      by
      Tenant, or anyone on
      the
Premises
      with Tenant's
      permission,
      or
      from
      any breach of this
      Lease.

     

    ARTICLE
      21

     

    LANDLORD'S
      LABILITY ETC. 

     

    21.01    
      This
      Lease and
      the
obligations
      of Tenant hereunder shall
      not
      in
      any
      way
      be
affected
      because Landlord is
      unable
      to
      fulfill any of its
      obligations
      or
      to
      supply
      any
      service, by
      reason
      of
strike
      or
      other
      cause not within
      Landlord's control. Landlord
      shall
      have the right,
      without
      incurring any
      liability
      to
      Tenant,
      to stop any
      service because of accident or emergency, or

    

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    for
      repairs, alterations or improvements, necessary or desirable in the judgment
      of
      Landlord, until such
      repairs, alterations or improvements shall have been completed. Landlord shall
      not be liable to
      Tenant
      or anyone else, for any loss or damage to person, property or business; nor
      shall Landlord
      be liable for any latent defect in the Premises or the Building. Neither the
      partners, entities
      or individuals comprising the Landlord, nor the agents, directors, or officers
      or employees of any
      of
      the foregoing shall be liable for the performance of the Landlord's obligations
      hereunder. Tenant
      agrees to look solely to Landlord's estate and interest in the land and
      Building, or the lease of
      the
      Building or of the land and Building, and the Premises, for the satisfaction
      of
      any right or remedy
      of
      Tenant for the collection of a judgement (or other judicial process) requiring
      the payment
      of money by Landlord, and in the event of any liability by Landlord, no other
      property or assets
      of
      Landlord or of any of the aforementioned parties 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 Tenant's use and occupancy
      of the Premises
      or any other liability of Landlord to Tenant.

     

    ARTICLE
      22

     

    CONDITION
      OF PREMISES

     

    22.01    
      The parties acknowledge that Tenant has inspected the Premises and the
Building
      and is fully familiar with the physical condition thereof and Tenant agrees
      to
      accept the Premises
      at the commencement of the Term in its then "as is" condition. Tenant
      acknowledges and
      agrees that Landlord shall have no obligation to do any work in or to the
      Premises in order to make
      it
      suitable and ready for occupancy and use by Tenant, except to the extent
      expressly provided
      for in this Article 22.

     

    22.02    
      Prior to the commencement of the Term of this Lease, Landlord shall, at
Landlord's
      cost and expense, perform the work set forth on the schedule annexed hereto
      as
Exhibit
      C
      in a building standard manner using building standard materials ("Landlord's
      Work"). Landlord,
      or Landlord's designated, wholly
      owned
      affiliate Emerald City Construction Corp., shall
      perform Landlord's Work with reasonable dispatch, subject to delay by causes
      beyond its control
      or by the action or inaction of Tenant. Tenant acknowledges and agrees that
      the
performance
      of Landlord's Work is expressly conditioned upon compliance by Tenant with
      all
      the terms
      and
      conditions of this Lease, including payment of Rent.

     

    22.03    
      Any changes in or additions to Landlord's Work which shall be consented
to
      by
      Landlord. and further changes in or additions to the Premises requested by
      Tenant after said Work
      has
      been completed which shall be so consented to shall be made by Landlord, or
      its
      agents, but
      shall
      be paid for by Tenant promptly when billed at cost plus 1 1/4% for insurance,
      5%
      for overhead
      and 5% for general conditions, and in the event of the failure of Tenant so
      to
      pay for said changes or additions. Landlord at its option may consider the
      cost
      thereof, plus the above percentages,
      as Additional Rent payable by Tenant and collectible as such hereunder, as
      part
      of the rent
      for
      the next ensuing months.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    22.04    
      If Landlord's Work is not substantially completed by the Commencement
Date
      and
      is delayed by acts, omissions or changes made or requested by Tenant, its
      agents, designers,
      architects or any other party acting or apparently acting on Tenant's behalf,
      then Tenant
      shall pay as hereinbefore provided rent and additional rent on a per diem basis
      for each day of
      delay
      of Landlord's substantial completion caused by Tenant or any of the
      aforementioned parties.

     

    22.05    
      Landlord's Work shall be deemed to be substantially completed notwithstanding
      that (i) minor or non-material details of construction, mechanical adjustment
      or
      decoration remain to be performed, provided that said "Punch List Items" shall
      be completed by Landlord
      within a reasonable time thereafter or (ii) a portion of Landlord's Work is
      incomplete because
      construction scheduling requires that such work be done after incomplete
      finishing or after other
      work to be done by or on behalf of Tenant is completed. Notwithstanding anything
      contained
      herein to the contrary, Landlord and Tenant acknowledge and agree that Landlord
      shall complete
      any Punch List items during normal business on normal business days, in
      connection with
      which Landlord acknowledges that Tenant may be conducting business in the
      Premises for the uses
      permitted under this Lease during such time(s). Accordingly, Landlord agrees
      that Landlord shall
      use
      commercially reasonable efforts to minimize interference with Tenant's permitted
      use of the
      Premises and to compartmentalize the portion of the Premises in which Landlord
      performs work
      on
      Punch List items in order to minimize the escape of debris therefrom and Tenant
      shall reasonably
      cooperate with Landlord by covering and/or temporarily relocating Tenant's
      personnel,
      furniture and/or office equipment within the Premises. Furthermore, in the
      event
      that Tenant requests that Landlord complete such Punch List Items during times
      other than ordinary business hours, and such labor is then available, Tenant
      shall be responsible for the cost of such overtime or premium labor charges
      as
      the case may be. Such entry and work shall not constitute an eviction
      of Tenant in whole or in part, shall not be grounds for any abatement of rent,
      and shall impose
      no
      liability on Landlord by reason of inconvenience or injury to Tenant's
      business.

     

    ARTICLE
      23

     

    CLEANING

     

    23.01    
      Landlord shall cause the Premises to be kept clean in accordance with
Landlord's
      customary standards for the Building, provided they are kept in order by Tenant.
      Landlord,
      its cleaning contractor and their employees shall have after-hours access to
      the
      Premises and
      the
      use of Tenant's light, power and water in the Premises as may be reasonably
      required for the
      purpose of cleaning the Premises. Landlord may remove Tenant's extraordinary
      refuse from the
      Building and Tenant shall pay the cost thereof.

     

    23.02    
      Tenant acknowledges that Landlord has designated a cleaning contractor for
      the
      Building. Tenant agrees to employ said cleaning contractor or such other
      contractor as Landlord
      shall from time to time designate (the "Building Cleaning Contractor") to
      perform all cleaning services required under the Lease to be performed by Tenant
      within the Premises and for any other waxing, polishing, and other cleaning
      and
      maintenance work of the Premises and

    

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    Tenant's
      furniture, fixtures and equipment (collectively, "Tenant
      Cleaning Services") provided
      that
      the
      prices charged by said contractor are comparable to the prices customarily
      charged by other
      reputable cleaning contractors employing union labor in midtown Manhattan for
      the same level
      and
      quality of service. Tenant acknowledges that it has been advised that the
      cleaning contractor
      for the Building may be a division or affiliate of Landlord. Tenant agrees
      that
      it shall not
      employ any other cleaning and maintenance contractor, nor any individual, firm
      or organization
      for such purpose, without Landlord's prior written consent. In the event that
      Landlord
      and Tenant cannot agree on whether the prices then being charged by the Building
      Cleaning
      Contractor for such cleaning services are comparable to those charged by other
      reputable contractors
      as herein provided, then Landlord and Tenant shall each obtain two (2) bona
      fide
      bids for
      such
      services from reputable cleaning contractors performing such services in
      comparable buildings in midtown Manhattan employing union labor, and the average
      of the four bids thus obtained
      shall be the standard of comparison. In the event that the Building Cleaning
      Contractor does
      not
      agree to perform such cleaning services for Tenant at such average price,
      Landlord shall not
      unreasonably withhold its consent to the performance of Tenant Cleaning Services
      by a
      reputable
      cleaning contractor designated by Tenant employing union labor with the proper
      jurisdictional
      qualifications; provided, however, that, without limitation, Landlord's
      experience with
      such
      contractor or any criminal proceedings pending or previously filed against
      such
      contractor
      may form a basis upon which Landlord may withhold or withdraw its
      consent.

     

    ARTICLE
      24

     

    JURY
      WAIVER

     

    24.01    
      Landlord and Tenant hereby waive trial by jury in
      any
      action, proceeding or counterclaim
      involving 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
      Premises or involving
      the right to an statutory relief or remedy. Tenant will not interpose any
      counterclaim of
      any
nature
      in
      any
      summary proceeding except for mandatory or compulsory
      counterclaims.

     

    ARTICLE
      25

     

    NO
      WAIVER ETC:

     

    25.01    
      No act or omission of Landlord or its
      agents
      shall constitute an
      actual
      or
constructive
      eviction, unless Landlord shall have first received written notice of Tenant's
      claim and
      shall
      have had a reasonable opportunity to meet such claim. In the event that any
      payment herein
      provided for by Tenant to Landlord shall become overdue for a period in excess
      of ten (10) days,
      then at Landlord's option a "late charge" shall become due and payable to
      Landlord, as
      Additional
      Rent, from the date it
      was
      due
      until payment is made, at the following rates: for individual
      and partnership lessees, said late charge shall be computed at the maximum
      legal
      rate of interest:
      for corporate or governmental entity lessees the late charge shall be computed
      at two
      percent
      per month unless there is an applicable maximum legal rate of interest which
      then shall be

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    used.
      No
      act or omission of Landlord or its agents shall constitute an acceptance of
      a
      surrender of the
      Premises, except a writing signed by Landlord. The delivery or acceptance of
      keys to Landlord
      or its agents shall not constitute a termination of this Lease or a surrender
      of
      the Premises.
      Acceptance by Landlord of less than the Rent herein provided shall at Landlord's
      option
      be
      deemed on account of earliest Rent remaining unpaid. No endorsement on any
      check, or letter
      accompanying Rent, shall be deemed an accord and satisfaction, and such check
      may be cashed
      without prejudice to Landlord. No waiver of any provision of this Lease shall
      be
      effective, unless
      such waiver be in writing signed by the party to be charged. In no event shall
      Tenant be entitled
      to make, nor shall Tenant make any claim, and Tenant hereby waives any claim
      for
      money damages
      (nor shall Tenant claim any money damages by way of set-off, counterclaim or
      defense) based
      upon any claim or assertion by Tenant that Landlord had unreasonably withheld,
      delayed or conditioned its consent or approval to any request by Tenant made
      under a provision of this Lease. Tenant's
      sole remedy shall be an action or proceeding to enforce any such provision,
      or
      for specific
      performance or declaratory judgment. Tenant shall comply with the rules and
      regulations contained
      in this Lease, and any reasonable modifications thereof or additions thereto.
      Landlord shall
      not
      be liable to Tenant for the violation of such rules and regulations by any
      other
      tenant. Failure
      of Landlord to enforce any provision of this Lease, or any rule or regulation,
      shall not be construed
      as the waiver of any subsequent violation of a provision of this Lease, or
      any
      rule or regulation.
      This Lease shall not be affected by nor shall Landlord in any way be liable
      for
      the closing, darkening or bricking up of windows in the Premises, for any
      reason, including as the result
      of
      construction on any property of which the Premises are not a part or by Landlord
      's own acts.

     

    ARTICLE
      26

     

    OCCUPANCY
      AND USE BY TENANT

     

    26.01    
      If this Lease is terminated because of Tenant's default hereunder, then, in
      addition to Landlord's rights of re-entry, restoration, preparation for and
      rerental, and anything elsewhere
      in this Lease to the contrary notwithstanding, all Rent and Additional Rent
      reserved in this
      Lease from the date of such breach to the expiration date of this Lease shall
      become immediately
      due and payable to Landlord and Landlord shall retain its right to judgment
      on
      and collection
      of Tenant's aforesaid obligation to make a single payment to Landlord of a
      sum
      equal to (i)
      the
      amount by which (x) the Fixed Annual Rent and Additional Rent payable hereunder
      for the period
      to
      the Expiration Date from the date of such breach, exceeds (y) the then fair
      and
reasonable
      rental value of the Premises for the same period, both discounted at the prime
      rate of interest charged by Chase Manhattan Bank. New York, (or the successor
      thereto) on the date of such
      breach to present worth, and (ii) all reasonable out-of-pocket expenses of
      Landlord in obtaining
      possession of, and in effecting the reletting
      of the
      Premises including, without limitation, alteration
      costs, commissions, concessions and legal fees. In no event shall Tenant be
      entitled to a credit
      or
      repayment for rerental income which exceeds the sums payable by Tenant hereunder
      or which
      covers a period after the original Term of this Lease.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      27

     

    NOTICES

     

    27.01    
      Any bill, notice or demand from Landlord to Tenant, may be delivered
personally
      at the Premises or sent by registered or certified mail or by any nationally
      recognized overnight
      delivery service and addressed to Tenant at the Premises or if prior to the
      commencement
      of the turn of this Lease to the address first set forth herein. Such bill,
      notice or demand
      shall be deemed to have been given at the time of delivery, mailing or receipt
      by such delivery
      service. Any notice, request or demand from Tenant to Landlord must be sent
      by
registered
      or certified mail or by any nationally recognized overnight courier service
      to
      the last address
      designated in writing by Landlord.

     

    ARTICLE
      28

     

    WATER

     

    28.01    
      Tenant shall pay the amount of Landlord's cost for all excessive water used
      by
      Tenant
      for any purpose other than ordinary cleaning, pantry or lavatory uses, and
      any
      sewer rent
      or
      tax based thereon. In the event Landlord has reason to believe that Tenant's
      use
      of water in
      the
      Premises is excessive, Landlord may install a water meter to measure Tenant's
      water consumption
      for all purposes and Tenant agrees to pay for the installation and maintenance
      thereof and
      for
      water consumed as shown on said meter at Landlord's cost therefor plus fifteen
      (15 %) percent.
      If water is made available to Tenant in the Building or the Premises through
      a
      meter which
      also supplies other Premises, or without a meter, then Tenant shall pay to
      Landlord a reasonable
      charge per month for water. Landlord reserves the right to discontinue water
      service to the Premises if either the quantity or character of such service
      is
      changed or is no longer available or
      suitable for Tenant's requirements or for any other reason without releasing
      Tenant from any liability
      under this Lease and without Landlord or Landlord's agent incurring any
      liability for any damage
      or
      loss sustained by Tenant by such discontinuance of service.

     

    ARTICLE
      29

     

    SPRINKLER
      SYSTEM

     

    29.01    
      If there shall be a "sprinkler system" in the Premises for any period during
      this
      Lease, Tenant shall pay a reasonable charge per month, for sprinkler supervisory
      service. In no
      event
      shall Tenant's Share exceed the sum of twenty five ($.25) cents per rentable
      square foot of space
      per
      calendar year during the term of this Lease. If such sprinkler system is damaged
      by any act
      or
      omission of Tenant or its agents, employees, licensees or visitors, Tenant
      shall
      restore the system
      to
      good working condition at its own expense. If the New York Board of Fire
Underwriters,
      the New York Fire Insurance Exchange, the Insurance Services Office, or any
      governmental
      authority requires the installation of, or any alteration to a sprinkler system
      by

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    reason
      of
      Tenant's particular manner of occupancy or use of the Premises, including any
      alteration necessary
      to obtain the full allowance for a sprinkler system in the fire insurance rate
      of Landlord, or
      for
      any other reason, Tenant shall make such installation or alteration promptly,
      and at its own expense.

     

    ARTICLE
      30

     

    HEAT,
      ELEVATOR, ETC.

     

    30.01    
      Landlord shall provide a minimum of one passenger elevator servicing the
floor
      upon which the premises are located twenty-four (24) hours a day, seven days
      a
      week. Landlord
      shall furnish heat to the Premises during days in the cold season in each year
      during usual
      business hours including Saturdays until 1 P.M., except on Sundays, State
      holidays, Federal holidays,
      or Building Service Employees Union Contract holidays. If the elevators in
      the
      Building are
      manually operated, Landlord may convert to automatic elevators at any time,
      without in any way
      affecting Tenant's obligations hereunder.

     

    30.02    
      Tenant shall not be charged for Tenant's use of one (1) car for freight
elevator
      service solely in connection with its initial, single phase move into the
      Premises, provided that
      (i)
      same does not exceed eight (8) hours in the aggregate; and (ii) Tenant
      acknowledges and agrees
      that such use shall be on a non-exclusive, first-come, first-served
      basis.

     

    ARTICLE
      31

     

    SECURITY
      DEPOSIT

     

    31.01    
      Tenant has deposited with Landlord the sum of $43.890.48 as security (the
"Security”
      ) for the performance by Tenant of the terms of this Lease after notice and
      the
expiration
      of any applicable cure period. Landlord may use any part of the Security to
      satisfy any default
      of Tenant and any expenses arising from such default, including but not limited
      to legal fees
      and
      any damages or rent deficiency before or after re-entry by Landlord. Tenant
      shall, upon demand, deposit with Landlord the Rill amount so used, and/or any
      amount not so deposited by Tenant,
      in order that Landlord shall have the full Security deposit on hand at all
      times
      during the term
      of
      this Lease. If Tenant shall comply fully with the terms of this Lease, the
      Security shall be returned
      to Tenant after the date fixed as the end of the Lease. In the event of a sale
      or lease of the
      Building containing the Premises, Landlord may transfer the Security to the
      purchaser or tenant,
      and Landlord shall thereupon be released from all liability for the return
      of
      the Security, This
      provision shall apply to every transfer or assignment of the Security to a
      new
      Landlord, Tenant
      shall have no legal power to assign or encumber the Security herein
      described.

     

    31.02    
      Effective as of the third (3rd)
      anniversary of the Commencement Date (the "Security Reduction Date"), the
      security required to be maintained by Tenant under the provisions of this
      Article 31 shall be reduced by the sum of $21,945.24 (the "Partial Security
      Refund") to the

     

    
      
        
        

      

      
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    sum
      of
      $21,945.24 provided that Tenant has not been in default of this Lease at any
      time prior thereto.
      In the event that Tenant is entitled to a reduction of security in accordance
      with the provisions
      of this Section 31.02. Landlord shall, within thirty (30) following receipt
      from
      Tenant of
      a
      demand therefor, at Landlord's election, refund to Tenant the Partial Security
      Refund by either
      issuing a check or credit against the next installments of Fixed Annual Rent
      and
      Additional Rent
      accruing hereunder from and after the Security Reduction Date.

     

    ARTICLE
      32

     

    TAX
      ESCALATION 

     

       
      32.01 Tenant shall pay to Landlord, as Additional Rent, tax escalation in
accordance
      with this Article:

     

    (a)  For
      purposes of this Lease, Landlord and Tenant acknowledge and agree that
      the
      rentable square foot area of the Premises shall be deemed to be 2,141 square
      feet.

     

    (b)  For
      the
      purpose of this Article, the following definitions shall apply:

     

    (i)  The
      term
      "Tenant's
      Share",
      for
      purposes of computing tax escalation, shall mean
      0.192 percent (0.192%). Tenant's Share has been computed on the basis of a
      fraction, the numerator
      of which is the rentable square foot area of the Premises and the denominator
      of
      which is
      the
      total rentable square foot area of the office and commercial space in the
      Building Project. The
      parties acknowledge and agree that the total rentable square foot area of the
      office and commercial
      space in the Building Project shall be deemed to be 1,112,424 sq.
      ft.

     

    (ii)  The
      term
      the "Building
      Project"
      shall
      mean the aggregate combined parcel of land
      on a
      portion of which are the improvements of which the Premises form a part, with
      all the improvements thereon, said improvements being a part of the block and
      lot for tax purposes which are applicable to the aforesaid land.

     

    (iii)  The
      "Base
      Tax Year"
      shall
      mean the New York City fiscal tax year commencing
      on July 1, 2005 through June 30, 2006.

     

    (iv)  The
      term
      "Comparative
      Year”
shall
      mean the twelve (12) month period following
      the Base Tax Year, and each subsequent period of twelve (12) months
      thereafter.

     

    (v)  The
      term
      "Real
      Estate Taxes"
      shall
      mean the total of all real estate taxes and special
      or other assessments levied, assessed or imposed at any time by any governmental
      authority
      upon or against the Building Project including, without limitation, any tax
      or
      assessment levied,
      assessed or imposed at any lime by any governmental authority in connection
      with
      the receipt
      of income or rents from said Building Project to the extent that same shall
      be
      in lieu of all or
      a
      portion of any of the aforesaid taxes or assessments, or additions or increases
      thereof, upon or against said Building Project. The Lease shall exclude from
      Real Estate Taxes any interest or

     

    
      
        
        

      

      
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    penalties
      incurred by Landlord by reason of late payment of Taxes. If, due to a future
      change in the
      method of taxation or in the taxing authority, or for any other reason, a
      franchise, income, transit,
      profit or other tax or governmental imposition, however designated, shall be
      levied against Landlord in substitution in whole or in part for the Real Estate
      Taxes, or in lieu of additions to or increases of said Real Estate Taxes, then
      such franchise, income, transit, profit or other tax or governmental
      imposition shall be deemed to be included within the definition of "Real Estate
      Taxes"
      for the purposes hereof.

     

    (vi) Where
      more than one assessment is imposed by the City of New York for any tax
      year,
      whether denominated an “actual assessment” or a "transitional assessment” or
      otherwise, then
      the
      phrases herein "assessed value" and "assessments” shall mean whichever of the
      actual, transitional
      or other assessment is designated by the City of New York as the taxable
      assessment for
      that
      tax year.

     

    32.02    
      In the event that the Real Estate Taxes payable for any Comparative Year
shall
      exceed the amount of the Real Estate Taxes payable during the Base Tax Year,
      Tenant shall pay
      to
      Landlord, as Additional Rent for such Comparative Year, an amount equal to
      Tenant's Share
      of
      the excess. Before or after the start of each Comparative Year, Landlord shall
      furnish to Tenant
      a
      statement of the Real Estate Taxes payable during the Comparative Year. if
      the
      Real Estate
      Taxes payable for such Comparative Year exceed the Real Estate Taxes payable
      during the Base
      Tax
      Year, Additional Rent for such Comparative Year, in an amount equal to Tenant's
      Share
      of
      the excess, shall be due from Tenant to Landlord, and such Additional Rent
      shall
      be payable
      by Tenant to Landlord within thirty (30) days after receipt of the aforesaid
      statement. The benefit
      of any discount for any early payment or prepayment of Real Estate Taxes shall
      accrue solely
      to
      the benefit of Landlord, and such discount shall not be subtracted from the
      Real
      Estate Taxes
      payable for any Comparative Year, In addition to the foregoing, Tenant shall
      pay
      to Landlord,
      on demand, as Additional Rent, a sum equal to Tenant's Share of any business
      improvement
      district assessment payable by the Building Project.

     

    32.03    
      Should the Real Estate Taxes payable during the Base Tax Year be reduced
by
      final
      determination of legal proceedings, settlement or otherwise, then, the Real
      Estate Taxes payable
      during the Base Tax Year shall be correspondingly revised, the Additional Rent
      theretofore
      paid or payable hereunder for all Comparative Years shall be recomputed on
      the
      basis of
      such
      reduction, and Tenant shall pay to Landlord as Additional Rent, within ten
      (10)
      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.

     

    32.04    
      If, after Tenant shall have made a payment of Additional Rent under Section
      32.02, Landlord shall receive a refund of any portion of the Real Estate Taxes
      payable for any Comparative
      Year after the Base Tax Year on which such payment of Additional Rent shall
      have
been
      based, as a result of a reduction of such Real Estate Taxes by final
      determination of legal proceedings,
      settlement or otherwise, Landlord shall within ten (10) days after receiving
      the
refund
      pay to Tenant Tenant's Share of the refund less Tenant's Share of expenses
      (including attorneys'
      and appraisers' fees) incurred by Landlord in connection with any such
      application or proceeding. In addition to the foregoing, Tenant shall pay to
      Landlord, as Additional Rent, within

     

    
      
        
        

      

      
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    ten
      (10)
      days after Landlord shall have delivered to Tenant a statement therefor,
      Tenant's Share of
      all
      expenses incurred by Landlord in reviewing or contesting the validity or amount
      of any Real Estate Taxes or for the purpose of obtaining reductions in the
      assessed valuation of the Building Project
      prior to the billing of Real Estate Taxes, including without limitation, the
      fees and disbursements
      of attorneys, third party consultants, experts and others.

     

    32.05    
      The statements of the Real Estate Taxes to be furnished by Landlord as
provided
      above shall be certified by Landlord and shall constitute a final determination
      as between Landlord and Tenant of the Real Estate Taxes for the periods
      represented thereby, unless Tenant within
      thirty (30) days after they are furnished shall give a written notice to
      Landlord that it disputes
      their accuracy or their appropriateness, which notice shall specify the
      particular respects in
      which
      the statement is inaccurate or inappropriate. If Tenant shall so dispute said
      statement then,
      pending the resolution of such dispute, Tenant shall pay the Additional Rent
      to
      Landlord in accordance with the statement furnished by Landlord.

     

    32.06     
      In no event shall the Fixed Annual Rent under this Lease be reduced by
virtue
      of
      this Article.

     

    32.07     
      If the Commencement Date of the Term of this Lease is not the first day of
      the
      first
      Comparative Year, then the Additional Rent due hereunder for such first
      Comparative Year
      shall be a proportionate share of said Additional Rent for the entire
      Comparative Year, said proportionate
      share to be based upon the length of time that the lease Term will be in
      existence during
      such first Comparative Year. Upon the date of any expiration or termination
      of
      this Lease (except
      termination because of Tenant's default) whether the same be the date
      hereinabove set forth
      for
      the expiration of the Term or any prior or subsequent date, a proportionate
      share of said Additional
      Rent for the Comparative Year during which such expiration or termination occurs
      shall
      immediately become due and payable by Tenant to Landlord, if it was not
      theretofore already billed and paid. The said proportionate share shall be
      based
      upon the length of time that this Lease shall
      have been in existence during such Comparative Year. Landlord shall promptly
      cause statements
      of said Additional Rent for that Comparative Year to be prepared and furnished
      to Tenant. Landlord and Tenant shall thereupon make appropriate adjustments
      of
      amounts then owing.

     

    32.08     
      Landlord's and Tenant's obligations to make the adjustments referred to in
      Section
      32.07 above shall survive any expiration or termination of this Lease. Any
      delay
      or failure
      of Landlord in billing any tax escalation hereinabove provided shall not
      constitute a waiver of
      or in
      any way impair the continuing obligation of Tenant to pay such tax escalation
      hereunder.

     

    ARTICLE
      33

     

    RENT
      CONTROL

     

    33.01     In
      the event the Fixed Annual Rent or Additional Rent or any part thereof provided
      to be paid by Tenant under the provisions of this Lease during the Term shall
      become

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    uncollectible
      or shall be reduced or required to be reduced or refunded by virtue of any
      Federal. State,
      County or City law, order or regulation, or by any direction of a public officer
      or body pursuant to law, or the orders, rules, code or regulations of any
      organization or entity formed pursuant
      to law, whether such organization or entity be public or private, then Landlord,
      at its option,
      may at any time thereafter terminate this Lease, by not less than thirty (30)
      days' written notice to Tenant, on a date set forth in said notice, in which
      event this Lease and the term hereof shall
      terminate and come to an end on the date fixed in said notice as if the said
      date were the date originally
      fixed herein for the termination of the demised term. Landlord shall not have
      the right to
      so
      terminate this Lease if Tenant within such period of thirty (30) days shall
      in
      writing lawfully agree
      that the rentals herein reserved are a reasonable rental and agree to continue
      to pay said rentals,
      and if such agreement by Tenant shall then be legally enforceable by
      Landlord.

     

    ARTICLE
      34

     

    SUPPLIES
      

     

    34.01    
      Only Landlord or any one or more persons, firms, or corporations authorized
      in writing by Landlord, which authorization shall not be unreasonably withheld,
      conditioned
      or delayed, shall be permitted to furnish laundry, linens, towels, drinking
      water, water coolers,
      ice and other similar supplies and services to tenants and licensees in the
      Building. Landlord
      may fix, in its own absolute discretion, from time to time, the hours during
      which and the
      regulations under which such supplies and services are to be furnished. Landlord
      expressly reserves
      the right to act as or to designate, from time to time, an exclusive supplier
      of
      all or any one
      or
      more of the said supplies and services; and Landlord furthermore expressly
      reserves the right to exclude from the Building any person, firm or corporation
      attempting to furnish any of said
      supplies or services but not so designated by Landlord.

     

    34.02    
      Only Landlord or any one or more persons, firms or corporations authorized
      in
      writing by Landlord shall be permitted to sell, deliver or furnish any food
      or
      beverages whatsoever
      for consumption within the Premises or elsewhere in the Building. Landlord
      expressly reserves the right to act as or to designate from time to time an
      exclusive supplier or suppliers of such
      food
      and beverages. Landlord further expressly reserves the right to exclude from
      the
Building
      any person, Firm or corporation attempting to deliver or purvey any such food
      or
beverages,
      but not so designated by Landlord. It is understood, however, that Tenant or
      its
regular
      office employees may personally bring food or beverages into the Building for
      consumption
      within the Premises by the said employees, but not for resale or for consumption
      by any
      other
      tenant. Landlord may fix in its absolute discretion from time to time the hours
      during which,
      and the regulations under which, food and beverages may be brought into the
      Building by Tenant
      or
      its regular employees.

     

    
      
        
        

      

      
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    ARTICLE
      35

     

    AIR
      CONDITIONING

     

    35.01    
      Tenant shall be permitted to use the equipment presently supplying
      air-conditioning
      service to the Premises (the "Existing HVAC Equipment") Monday to Friday from
      8:00 to
      6:00
      p.m. during the Building's "Cooling Season" (which is currently May 15 through
      October
      15) subject to and in accordance with the provisions of this Article. Landlord
      shall perform such
      work
      as is necessary, if any, in order to place the Existing HVAC Equipment in good
      working order
      ("Landlord's Initial HVAC Work") subject, however, to Tenant's obligation to
      thereafter maintain
      and repair the Existing HVAC Equipment in accordance with the provisions of
      this
      Article. Landlord
      shall perform Landlord's Initial HVAC Work as promptly as is reasonably
      practical following
      the commencement of the Term hereof, Tenant acknowledges and agrees that
      air-conditioning,
      service
      to the Premises shall be supplied through equipment operated, maintained and
      repaired by Tenant and that Landlord has no obligation to operate, maintain
      or
      to repair the said equipment
      or to supply air-conditioning service to the Premises. The Existing HVAC
      Equipment and
      all
      other air conditioning systems, equipment and facilities hereafter located
      in or
      servicing the Premises {the "Supplemental Systems") including, without
      limitation, the ducts, dampers, registers, grilles and appurtenances utilized
      in
      connection with both the Existing HVAC Equipment and the Supplemental
      Systems (collectively hereinafter referred to as the "HVAC System"), shall
      be
maintained,
      repaired and operated by Tenant in compliance with all present and future laws
      and regulations relating thereto at Tenant's sole cost and expense. Tenant
      shall
      pay for all electricity consumed in the operation of the HVAC System, and
      Tenant's proportionate share of the electric current (and or water, gas and
      steam) for the production of chilled and/or condenser water and its supply
      to
      the Premises, if applicable, which shall become the obligation of Tenant subject
      to the terms
      of
      Article 41 of this Lease Tenant shall pay for all parts and supplies necessary
      for the proper operation of the HVAC System (and any restoration or replacement
      by Tenant of all or any part thereof shall be in quality and class at least
      equal to the original work or installations); provided, however,
      that Tenant shall not alter, modify, remove or replace the HVAC System, or
      any
      part thereof,
      without Landlord's prior written consent.

     

    35.02    
      Without limiting the generality of the foregoing, Tenant shall, at its own
      cost
and
      expense, (a) cause to be performed all maintenance of the HVAC System, including
      all repairs and
      replacements thereto, and (b) commencing as of the date upon which Tenant shall
      first occupy the
      Premises for the conduct of its business, and thereafter throughout the Term
      of
      the Lease, maintain
      in force and provide a copy of same to Landlord an air conditioning service
      repair and full
      service maintenance contract covering the HVAC System in form satisfactory
      to
      Landlord with an
      air
      conditioning contractor or servicing organization approved by Landlord. All
      such
      contracts shall
      provide for the thorough overhauling of the HVAC System at least once each
      year
      during the Term of this Lease and shall expressly state that (i) it shall be
      an
      automatically renewing contract terminable upon not less than thirty (30) days
      prior written notice to the Landlord (sent by certified mail,
      return receipt requested) and (ii) the contractor providing such service shall
      maintain a log at the
      Premises detailing the service provided during each visit pursuant to such
      contract. Tenant shall
      keep such log at the Premises and permit Landlord to review same promptly after
      Landlord's request. The HVAC System is and shall at all times remain the
      property of Landlord, and at the

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    expiration
      or sooner termination of the Lease. Tenant shall surrender to Landlord the
      HVAC
System
      in
      good working order and condition, subject to normal wear and tear and shall
      deliver to Landlord
      a copy of the service log. In the event that Tenant fails to obtain the contract
      required herein or perform any of the maintenance or repairs required hereunder.
      Landlord shall have the right,
      but not the obligation, to procure such contract and/or perform any such work
      and charge the
      Tenant as Additional Rent hereunder the cost of same plus an administrative
      fee
      equal to Fifteen percent
      (15%) of such cost which shall be paid for by Tenant on demand.

     

    ARTICLE
      36

     

    SHORING

     

    36.01    
      Tenant shall permit any person authorized to make an excavation on land adjacent
      to the Building containing the Premises to do any work within the Premises
      necessary to preserve the wall of the Building from injury or damage, and Tenant
      shall have no claim against Landlord for damages or abatement of rent by reason
      thereof.

     

    ARTICLE
      37

     

    EFFECT
      OF CONVEYANCE ETC.

     

    37.01    
      If the Building containing the Premises shall be sold, transferred or leased,
      or
      the
      lease thereof transferred or sold, Landlord shall be relieved of all future
      obligations and liabilities
      hereunder and the purchaser, transferee or tenant of the Building shall be
      deemed to have assumed
      and agreed to perform all such obligations and liabilities of Landlord
      hereunder. In the event
      of
      such sale, transfer or lease, Landlord shall also be relieved of all existing
      obligations and liabilities hereunder, provided that the purchaser, transferee
      or tenant of the Building assumes in writing such obligations and
      liabilities.

     

    ARTICLE
      38

     

    RIGHTS
      OF SUCCESSORS AND ASSIGNS

     

    38.01    
      This Lease shall bind and inure to the benefit of the heirs, executors,
administrators,
      successors, and, except as otherwise provided herein, the assigns of the parties
      hereto.
      If any provision of any Article of this Lease or the application thereof to
      any
      person or circumstances
      shall, to any extent, be invalid or unenforceable, the remainder of that
      Article, or the
      application of such provision to persons or circumstances other than those
      as to
      which it is held invalid
      or unenforceable, shall not be affected thereby, and each provision of said
      Article and of this
      Lease shall be valid and be enforced to the fullest extent permitted by
      law.

     

    
      
        
        

      

      
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    ARTICLE
      39 

     

    CAPTIONS

     

    39.01    
      The captions herein are inserted only for convenience, and are in no way to
      be
      construed as a part of this Lease or as a limitation of the scope of any
      provision of this Lease.

     

    ARTICLE
      40

     

    BROKERS

     

    40.01    
      Tenant covenants, represents and warrants that Tenant has had no dealings
or
      negotiations with any broker or agent in connection with the consummation of
      this Lease other than
      SL
      Green Leasing LLB: (the "Broker”) and Tenant covenants and agrees to defend,
      hold harmless
      and indemnify Landlord from and against any and all cost, expense (including
      reasonable attorneys'
      fees) or liability for any compensation, commissions or charges claimed by
      any
      broker or agent with respect to this Lease or the negotiation thereof. Landlord
      represents that Landlord, at its sole cost and expense, shall pay all
      commissions due to the Brokers pursuant to a separate written
      agreement.

     

    40.02    
      Landlord represents and warrants to Tenant that it did not consult or
negotiate
      with any broker, finder, or consultant with regard to the Premises other than
      the Brokers,
      and that no other broker, finder or consultant participated in procuring this
      Lease. Landlord
      hereby indemnifies and agrees to defend and hold Tenant, its agents, servants
      and employees harmless from any suit, action, proceeding, controversy, claim
      or
      demand whatsoever at law or in equity that may be instituted against Tenant
      by
      those who dealt with Landlord for recovery
      of compensation or damages for procuring this Lease or by reason of a breach
      or
purported
      breach of the representations and warranties contained herein.

     

    ARTICLE
      41

     

    ELECTRICITY

     

    41.01    
      Tenant acknowledges and agrees that electric service shall be supplied to the
      Premises
      on a “rent inclusion basis" in accordance with the provisions of this Article 41
      (subject to Landlord's right, in its sole discretion. to furnish such
      electricity on a "submetering" basis as provided for herein).

     

    41.02    
      Electricity and electric service, as used herein, shall mean any element
affecting
      the generation, transmission, and/or distribution or redistribution of
      electricity, including but
      not
      limited to services which facilitate the distribution of service.

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    41.03    
      If and so long as Landlord provides electricity to the Premises on a rent
inclusion
      basis, Tenant agrees that the Fixed Annual Rent shall be increased by the amount
      of the Electricity
      Rent Inclusion Factor (“ERIF”as hereinafter defined, Tenant acknowledges and
      agrees (i) that the Fixed Annual Rent hereinabove set forth in this Lease does
      not yet, but is to include
      an ERIF of $3.00 per rentable square foot to compensate Landlord for electrical
      wiring and
      other
      installations necessary for, and for its obtaining and making available to
      Tenant the redistribution
      of electric current as an additional service, and Tenant shall pay for Tenant's
      Share of
      Building electric current (i.e., all electricity used in lighting the public
      and
      service areas, and in operating
      all the service facilities, of the Building and the parties acknowledge and
      agree that twenty
      percent (20%) of the Building's payment to the public utility or other service
      providers for the
      purchase of electricity shall be deemed to he payment for Building electric
      current) which shall be
      paid
      for by Tenant in accordance with provisions hereof; and (ii) that said ERIF,
      which shall be subject
      to periodic adjustments as hereinafter provided, has been partially based upon
      an estimate of
      the
      Tenant's connected electrical load. in whatever manner delivered to Tenant,
      which shall be deemed to be the demand (KW), and hours of use thereof, which
      shall be deemed to be the energy (KWH),
      for ordinary lighting and light office equipment and the operation of the usual
      small business
      machines, including Xerox or other copying machines (such lighting and equipment
      are hereinafter
      called “Ordinary
      Equipment"
      during
      ordinary business hours ("Ordinary
      Business Hours")
      shall
      be deemed to mean 50 hours per week). with Landlord providing an average
connected
      load of 4 1/2
      watts
      of electricity for all purposes per rentable square foot. Any installation
      and use of equipment other than Ordinary Equipment and/or any connected load
      and/or energy
      usage by Tenant in excess of the foregoing and the charge for Tenant's Share
      of
      Building electric
      current shall result in adjustment of the ERIF as hereinafter provided. For
      purposes of this
      Article, the rentable square foot area of the Premises shall be deemed to be
      2,141 square feet.

     

    41.04    
      If the cost to Landlord of electricity shall have been, or shall be, increased
      subsequent to September 1, 2005 (whether such change occurs prior to or during
      the term of this Lease),
      by change in Landlord's electric rates or service classifications, or
      electricity charges, including
      changes in market prices, or by an increase, subsequent to the last such
      electric rate or service
      classification change or market price change, in fuel adjustments or charges
      of
      any kind, or by
      taxes,
      imposed on Landlord's electricity purchases or on Landlord's electricity
      redistribution. or
      for
      any other such reason, then the aforesaid ERIF portion of the fixed annual
      rent
      shall be changed
      in the same percentage as any such change in cost due to changes in electric
      rates, service classifications
      or market prices, and, also Tenant's payment obligation, for electricity
redistribution,
      shall change from time to time so as to reflect any such increase in fuel
      adjustments or
      charges, and such taxes. Any such percentage change in Landlord's cost due
      to
      change in Landlord's
      electric rate or service classifications or market prices, shall be computed
      on
      the basis of the average consumption of electricity for the Building for the
      twelve full months immediately prior
      to
      the rate change or other such changes in cost, energy and demand, and any
      changed methods
      of or rules on billing for same, applied on a consistent basis to the new
      electric rate or service
      classification or market price and to the immediately prior existing electric
      rate or service classification
      or market price, if the average consumption (energy and demand) for the entire
      Building
      for said prior twelve (12.) months cannot reasonably be applied and used with
      respect to changed
      methods of or rules on billing, then the percentage increase shall be computed
      by the use of
      the
      average consumption (energy and demand) for the entire building for the first
      three (3)

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    months
      after such change, projected to a full twelve (12) months, so as to reflect
      the
      different seasons;
      and that same consumption, so projected, shall be applied to the rate and/or
      service classification
      or market price which existed immediately prior to the change. The parties
      agree
that
      a
      reputable, independent electrical consultant firm, selected by Landlord
      ("Landlord's
      Electrical
      Consultant"),
      shall
      determine the percentage change for the changes in ERIF due to Landlord's
      changed costs and the charge to Tenant for Tenant's Share of Building electric
      current,
      and that Landlord's Electrical Consultant may from time to time make surveys
      in
      the Premises
      of the electrical equipment and fixtures and use of current. (i) If such survey
      shall reflect a
      connected electrical load in excess of 4 1/2watts of electricity for all
      purposes per rentable square foot
      and/or energy usage in excess of Ordinary Business Hours (each such excess
      hereinafter called
      "excess
      electricity')
      then
      the connected electrical load and/or the hours of use portion(s) of the
      then
      existing ERIE shall be increased by an amount which is equal to a fraction
      of
      the then existing
      ERIF, the numerator of which is the excess electricity (i.e., excess connected
      load and/or excess usage) and the denominator of which is the connected load
      and/or the energy usage which was the basis of the then existing ERIF, Such
      fractions shall be determined by Landlord's Electrical
      Consultant. The Fixed Annual Rent shall then be appropriately adjusted,
      effective as of the
      date
      of any such change in connected load and/or usage, as disclosed by said survey.
      (ii) If such
      survey shall disclose installation and use of other than Ordinary Equipment,
      then effective as of
      the
      date of said survey, there shall be added to the ERIF portion of Fixed Annual
      Rent (computed
      and fixed as hereinbefore described) an additional amount equal to what would
      be
      paid under
      the
      SC-4 Rate 1 Service Classification in effect on September 1, 2005 (and not
      the
      time-of--day rate schedule) or the comparable rate schedule (and not the
      time-of-day rate schedule) of any utility
      other than Con Ed then providing electrical service to the building as same
      shall be in effect on
      the
      date of such survey for such load and usage of electricity, with the connected
      electrical load deemed to be the demand (KW) and the hours of use thereof deemed
      to be the energy (KWH), as hereinbefore
      provided, (which addition to the ERIF shall be increased by all electricity
      cost
changes
      of Landlord, as hereinabove provided, from September 1, 2005 through the date
      of
billing).

     

    41.05    
      In no event, whether because of surveys, rates or cost changes, or for any
      reason,
      is the originally specified $3.00 per rentable square foot ERIE portion of
      the
      fixed annual rent
      (plus any net increase thereof by virtue of all electricity rate, service
      classification or market price
      changes of Landlord subsequent to September 1, 2005) to be reduced.

     

    41.06    
      The determinations by Landlord's Electrical Consultant shall be binding.
and
      conclusive on Landlord and Tenant from and after the delivery of copies of
      such
determinations
      to Landlord and Tenant, unless, within fifteen (15) days after delivery thereof,
      Tenant
      disputes such determination. If Tenant so disputes the determination, it shall,
      at its own expense,
      obtain from a reputable, independent electrical consultant its own
      determinations in accordance with the provisions of this Article. Tenant's
      consultant and Landlord's consultant then
      shall seek to agree. If they cannot agree within thirty (30) days they shall
      choose a third reputable
      electrical consultant, whose cost shall be shared equally by the parties, to
      make similar determinations
      which shall be controlling. (If they cannot agree on such third consultant
      within ten
      (10)
      days, then either party may apply to the Supreme Court in the County of New
      York
      for such
      appointment.) However, pending such controlling determinations Tenant shall
      pay
      to

     

    
      
        
        

      

      
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    Landlord
      the amount of Additional Rent or ERIF in accordance with the determinations
      of
      Landlord's Electrical Consultant. If the controlling determinations differ
      from
      Landlord's Electrical
      Consultant, then the parties shall promptly make adjustments for any deficiency
      owed by Tenant or overage paid by Tenant,

     

    41.07    
      If and so long as Landlord provides electricity to the Premises on a
submetering
      basis, Tenant covenants and agrees to purchase the same from Landlord or
Landlord's
      designated agent at charges, terms and rates set, from time to time, during
      the
      term of this
      Lease by Landlord but not more than those specified in the service
      classification in effect on January 1, 1970 pursuant to which Landlord then
      purchased electric current from the public utility corporation
      serving the part of the city where the Building is located; provided however,
      said charges shall be increased in the same percentage as any percentage
      increase in the billing to Landlord
      for electricity for the entire Building, by reason of increase in Landlord's
      electric rates or
      service classifications, subsequent to January 1, 1970, and so as to reflect
      any
      increase in Landlord's
      electric charges, including changes in market prices for electricity from
      utilities and/or other providers, in fuel adjustments or by taxes or charges
      of
      any kind imposed on Landlord's
      electricity purchases or redistribution, or for any other such reason,
      subsequent to said date.
      Any
      such percentage increase in Landlord's billing for electricity due to changes
      in
      rates, service
      classifications, or market prices, shall be computed by the application of
      the
      average consumption
      (energy and demand) of electricity for the entire Building for the twelve (12)
      full months
      immediately prior to the rate and/or service classification change, or any
      changed methods of
      or
      rules on billing for same, applied on a consistent basis to the new rate and/or
      service classification
      or market price, and to the classification and rate in effect on January 1,
      1970. If the average consumption of electricity for the entire Building for
      said
      prior twelve (12.) months cannot reasonably be applied and used with respect
      to
      changed methods of or rules on billing. then the percentage shall be computed
      by
      the use of the average consumption (energy and demand) for the entire
      Building for the first three (3) months after such change, projected to a full
      twelve (12) months,
      so as to reflect the different seasons; and that same consumption, so projected,
      shall be applied
      to the service classification and rate in effect on January 1, 1970. Where
      more
      than one meter
      measures the service of Tenant in the Building, the service rendered through
      each meter may be
      computed and billed separately in accordance with the rates herein specified.
      Bills therefore shall
      be
      rendered at such times as Landlord may elect and the amount, as computed from
      a
      meter, shall
      be
      deemed to be, and be paid as, Additional Rent. In the event that such bills
      are
      not paid within
      five (5) days after the same are rendered, Landlord may, without further notice,
      discontinue the
      service of electric current to the Premises without releasing Tenant from any
      liability under this
      Lease and without Landlord or Landlord's agent incurring any liability for
      any
      damage or loss
      sustained by Tenant by such discontinuance of service. If any tax is imposed
      upon Landlord's
      receipt from the sale, resale or redistribution of electricity or gas or
      telephone service to
      Tenant
      by any Federal, State, or Municipal authority, Tenant covenants and agrees
      that
      where permitted
      by law, Tenant's pro-rata share of such taxes shall be passed on to and included
      in the bill
      of,
      and paid by, Tenant to Landlord.

     

    41.08    
      If all or part of the submetering Additional Rent or the ERIE payable in
accordance
      with Section 41.03 or 41.04 of this Article becomes uncollectible or reduced
      or
refunded
      by virtue of any law, order or regulations, the parties agree that, at
      Landlord's option,

     

    
      
        
        

      

      
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    in
      lieu
      of submetering Additional Rent or ERIF, and in consideration of Tenant's use
      of
      the Building's
      electrical distribution system and receipt of redistributed electricity and
      payment by Landlord
      of consultant's fees and other redistribution costs, the Fixed Annual Rental
      rate(s) to be paid
      under this Agreement shall be increased by an "alternative charge" which shall
      be a sum equal
      to
      $3.00 per year per rentable square foot of the Premises, changed in the same
      percentage as
      any
      increase in the cost to Landlord for electricity for the entire Building
      subsequent to September
      1, 2005, because of electric rate, service classification or market price
      changes, such percentage change to be computed as in Section 41.04
      provided.

     

    41.09    
      Landlord shall not be liable to Tenant for any loss or damage or expense which
      Tenant may sustain or incur if either the quantity or character of electric
      service is changed or is no longer available or suitable for Tenant's
      requirements. Tenant covenants and agrees that at all times its use of electric
      current shall never exceed the capacity of existing feeders to the Building
      or
      wiring installation. Any riser or risers to supply Tenant's electrical
      requirements, upon
      written request of Tenant, will be installed by Landlord, at the sole cost
      and
      expense of Tenant, if, in Landlord's sole judgment, the same are necessary
      and
      will not cause permanent damage or injury to the Building or the Premises or
      cause or create a dangerous or hazardous condition or entail excessive or
      unreasonable alterations, repairs or expense or interfere with or disturb other
      tenants or occupants. In addition to the installation of such riser or risers,
      Landlord will also at the sole cost and expense of Tenant, install all other
      equipment proper and necessary in connection therewith subject to the aforesaid
      terms and conditions. The parties acknowledge that they understand that it
      is
      anticipated that electric rates, charges, etc., may be changed by virtue of
      time-of-day rates or changes in other methods of billing, and/or
      electricity,
      purchases and the redistribution thereof, and fluctuation in the market price
      of
      electricity, and that the references in the foregoing paragraphs to changes
      in
      methods of or rules on billing arc intended to include any such changes.
      Anything hereinabove to the contrary notwithstanding, in no event is the
      submetering Additional Rent or ERIF, or any "alternative charge", to be less
      than an amount equal to the total of Landlord's payments to public utilities
      and/or other providers for the electricity consumed by Tenant (and any taxes
      thereon or on redistribution of same) plus 5% thereof for transmission line
      loss, plus 15% thereof for other redistribution costs. The Landlord reserves
      the
      right, at any time upon thirty (30) days' written notice, to change its
      furnishing of electricity
      to Tenant from a rent inclusion basis to a submetering basis, or vice versa,
      or
      to change to
      the
      distribution of less than all the components of the existing service to Tenant.
      The Landlord reserves the right to terminate the furnishing of electricity
      on a
      rent inclusion, submetering, or any other
      basis at any time, upon thirty (30) days' written notice to the Tenant, in
      which
      event the Tenant
      may make application directly to the public utility and/or other providers
      for
      the Tenant's entire separate supply of electric current and Landlord shall
      permit its wires and conduits, to the extent available and safely capable,
      to be
      used for such purpose, but only to the extent of Tenant' s then authorized
      load.
      Any meters, risers, or other equipment or connections necessary to furnish
      electricity on a submetering basis or to enable Tenant to obtain electric
      current directly from such utility
      and/or other providers shall be installed at Tenant's sole cost and expense.
      Only rigid conduit
      or electricity metal tubing (EMT) will be allowed. The Landlord, upon the
      expiration of the
      aforesaid thirty (30) days' written notice to the Tenant may discontinue
      furnishing the electric current
      but this Lease shall otherwise remain in full force and effect. If Tenant was
      provided electricity
      on a rent inclusion basis when it was so discontinued, then commencing when
      Tenant

     

    
      
        
        

      

      
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    receives
      such direct service and as long as Tenant shall continue to receive such
      service, the Fixed Annual
      Rent payable under this Lease shall be reduced by the amount of the ERIF which
      was payable
      immediately prior to such discontinuance of electricity on a rent inclusion
      basis.

     

    ARTICLE
      42

     

    LEASE
      SUBMISSION

     

    42.01    
      Landlord and Tenant agree that this Lease is submitted to Tenant on the
understanding
      that it shall not be considered an offer and shall not bind Landlord in any
      way
unless
      and until (i) Tenant has duly executed and delivered duplicate originals thereof
      to Landlord and
      (ii)
      Landlord has executed and delivered one of said original to Tenant.

     

    ARTICLE
      43

     

    INSURANCE

     

    43.01.    
      Tenant shall not violate, or permit the violation of, any condition imposed
      by
      the
      standard fire insurance policy then issued for office buildings in the Borough
      of Manhattan, City
      of
      New York, and shall not do, or permit anything to be done, or keep or permit
      anything to be
      kept
      in the Premises which would subject Landlord to any liability or responsibility
      for personal injury
      or
      death or property damage, or which would increase the fire or other casualty
      insurance rate
      on
      the Building or the property therein over the rate which would otherwise then
      be
      in effect (unless
      Tenant pays the resulting premium as hereinafter provided for) or which would
      result in insurance companies of good standing refusing to insure the building
      or any of such property in amounts
      reasonably satisfactory to Landlord.

     

    43.02    
      Tenant covenants to provide on or before the earlier to occur of (i) the
Commencement
      Date, and (ii) ten (10) days from the date of this Lease, and to keep in force
      during
      the term hereof the following insurance coverage which coverage shall be
      effective on the Commencement Date:

     

    (a)       
      A comprehensive policy of liability insurance naming Landlord and its
      designees as additional insureds protecting Landlord, its designees and Tenant
      against any liability
      whatsoever occasioned by accident on or about the Premises or any appurtenances
      thereto. Such
      policy shall have limits of liability of not less than Three Million
      ($3,000,000) Dollars combined
      single limit coverage on a per occurrence basis, including property damage.
      Such
insurance
      may be carried under a blanket policy covering the Premises and other locations
      of Tenant,
      if any, provided such a policy contains an endorsement (i) naming Landlord
      and
      its designees
      as additional insureds, (ii) specifically referencing the Premises; and (iii)
      guaranteeing a minimum
      limit available for the Premises equal to the limits of liability required
      under
      this Lease:

     

    (b)       
      Fire
      and
      extended coverage in an amount adequate to cover the cost

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    

    of
      replacement of all personal property, fixtures, furnishings, equipment,
      improvements and installations
      located in the Premises.

     

    43.03    
      All such policies shall be issued by companies of recognized responsibility
      licensed
      to do business in New York State and rated by Best's Insurance Reports or any
      successor publication
      of comparable standing and carrying a rating of A+ VIII or better or the then
      equivalent
      of such rating, and al1 such policies shall contain a provision whereby the
      same
      cannot be
      canceled or modified unless Landlord and any additional insured are given at
      least thirty (30) days
      prior written notice of such cancellation or modification.

     

    43.04    
      Prior co the time such insurance is first required to be carried by Tenant
      and
thereafter,
      at least fifteen (15) days prior to the expiration of any such policies, Tenant
      shall deliver
      to Landlord either duplicate originals of the aforesaid policies or certificates
      evidencing such
      insurance, together
      with evidence of payment for the policy. If Tenant delivers certificates as
      aforesaid
      Tenant, upon reasonable prior notice from Landlord, shall make available to
      Landlord, at
      the
      Premises, duplicate originals of such policies from which Landlord may make
      copies thereof,
      at Landlord's cost. Tenant's failure to provide and keep in force the
      aforementioned insurance
      shall be regarded as a material default hereunder, entitling Landlord to
      exercise any or all
      of
      the remedies as provided in this Lease in the event of Tenant's default, In
      addition, in the event
      Tenant fails to provide and keep in force the insurance required by this Lease,
      at the times and
      for
      the durations specified in this Lease. Landlord shall have the right, but not
      the obligation, at
      any
      time and from time to time, and without notice, to procure such insurance and/or
      pay the premiums for such insurance in which event Tenant shall repay Landlord
      within five (5) days after demand by Landlord, as Additional Rent, all sums
      so
      paid by Landlord and any costs or expenses incurred by Landlord in connection
      therewith without prejudice to any other rights and remedies of Landlord under
      this Lease

     

    43.05    
      Landlord and Tenant shall each endeavor to secure an appropriate clause in,
      or
      an
      endorsement upon, each fire or extended coverage policy obtained by it and
      covering the Building, the Premises or the personal property, fixtures and
      equipment located therein or thereon, pursuant
      to which the respective insurance companies waive subrogation or permit the
      insured, prior
      to
      any loss, to agree with a third party to waive any claim it might have against
      said third party.
      The waiver of subrogation or permission for waiver of any claim hereinbefore
      referred to shall
      extend to the agents of each party and its employees and, in the case of Tenant,
      shall also extend to all other persons and entities occupying or using the
      Premises in accordance with the terms
      of
      this Lease. If and to the extent that such waiver or permission can be obtained
      only upon payment
      of an additional charge then, except as provided in the following two
      paragraphs, the party
      benefiting from the waiver or permission shall pay such charge upon demand,
      or
      shall be deemed
      to
      have agreed that the party obtaining the insurance coverage in question shall
      be
      free of any
      further obligations under the provisions hereof relating to such waiver or
      permission.

     

    43.06    
      In the event that Landlord shall be unable at any time to obtain one of the
      provisions
      referred to above in any of its insurance policies, at Tenant's option, Landlord
      shall cause
      Tenant to be named in such policy or policies as one of the insureds, but if
      any
      additional premium shall be imposed for the inclusion of Tenant as such an
      insured, Tenant shall pay such

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    additional
      premium upon demand. In the event that Tenant shall have been named as one
      of
      the insureds
      in any of Landlord's policies in accordance with the foregoing, Tenant shall
      endorse promptly
      to the order of Landlord. without recourse, any check, draft or order for the
      payment of money
      representing the proceeds of any such policy or any other payment growing out
      of
      or connected
      with said policy and Tenant hereby irrevocably waives any and all rights in
      and
      to such proceeds and payments.

     

    43.07    
      In the event that Tenant shall be unable at any time to obtain one of the
provisions
      referred to above in any of its insurance policies, Tenant shall cause Landlord
      to be named in such policy or policies as one of the insureds. but if any
      additional premium shall be imposed for the inclusion of Landlord as such an
      insured, Landlord shall pay such additional premium
      upon demand or Tenant shall be excused from its obligations under this paragraph
      with respect to the insurance policy or policies for which such additional
      premiums would be imposed.

     

    43.08    
      Subject to the foregoing provisions of this Article, and insofar as may be
      permitted
      by the terms of the insurance policies carried by it, each party hereby releases
      the other with
      respect to any claim (including a claim for negligence) which it might otherwise
      have against the
      other
      party for loss, damages or destruction with respect to its property by fire
      or
      other casualty
      (including rental value or business interruption, as the case may be) occurring
      during the Term
      of
      this Lease.

     

    43.09    
      If, by reason of a failure of Tenant to comply with the provisions of this
      Lease,
      the rate of fire insurance with extended coverage on the building or equipment
      or other property
      of Landlord shall be higher than it otherwise would be, Tenant shall reimburse
      Landlord, on
      demand, for that part of the premiums fur fire insurance and extended coverage
      paid by Landlord
      because of such failure on the part of Tenant.

     

    43.10    
      Landlord may, from time to time, require that the amount of the insurance to
      be
      provided and maintained by Tenant hereunder be increased so that the amount
      thereof adequately
      protects Landlord's interest, but in no event in excess of the amount that
      would
      be required
      of other tenants in other similar office buildings in the borough of
      Manhattan.

     

    43.11    
      A schedule or make up of rates for the building or the Premises, as the case
      may
      be, issued by the New York Fire Insurance Rating Organization or other similar
      body making rates for fire insurance and extended coverage for the premises
      concerned, shall be conclusive evidence of the facts therein stated and of
      the
      several items and charges in the fire insurance rate with extended coverage
      then
      applicable to such premises.

     

    43.12    
      Each policy evidencing the insurance to be carried by Tenant under this
Lease
      shall contain a clause that such policy and the coverage evidenced thereby
      shall
      be primary with respect to any policies carried by Landlord, and that any
      coverage carried by Landlord shall be excess
      insurance.

    
 

    
      
        
        

      

      
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    ARTICLE
      44

     

    SIGNAGE

     

    44.01    
      Tenant shall be permitted to affix either sign or plaque on or adjacent to
      the
      entrance door to the Premises, subject to the prior written approval of Landlord
      which shall not be unreasonably
      withheld subject to the other provisions of this Article, with respect to
      location, design,
      size, materials, quality, coloring, lettering and shape thereof, and subject,
      also, to compliance
      by Tenant, at its expense, with all applicable legal requirements or
      regulations. All such
      signage shall be consistent and compatible with the design, aesthetics, signage
      and graphics program for the Building as established by Landlord. Landlord
      may
      remove any sign installed in violation
      of this provision, and Tenant shall pay the cost of such removal and any
      restoration costs.

     

    ARTICLE
      45

     

    RIGHT
      TO RELOCATE

     

    45.01    
      Notwithstanding anything contained in this Lease to the contrary, Landlord
      shall
      have the right to substitute in lieu of the Premises alternative space in the
      Building designated by
      Landlord (the "Relocation Space") effective as of the date (the "Relocation
      Effective Date") set
      forth
      in a notice given to Tenant (the "Relocation Notice"). The Relocation Space
      shall be reasonably
      comparable to the Premises with respect to internal configuration, quality
      of
      finish and rentable
      square foot area (ix., plus or minus ten (10%) percent). The Relocation
      Effective Date shall
      not
      be less than sixty (60) days following the date upon which the Relocation Notice
      is given to
      Tenant. In the event that Landlord exercises its rights hereunder, (i) Tenant
      shall deliver to Landlord
      possession of the Premises on or before the Relocation Effective Date vacant
      and
      broom clean,
      free of all occupancies and encumbrances and otherwise in accordance with the
      terms, covenants
      and conditions of the Lease as if the Relocation Effective Date were the
      expiration date of
      the
      Term of this Lease, (ii) effective as of the Relocation Effective Date, the
      term
      and estate hereby
      granted with respect to the Premises originally demised hereunder shall
      terminate, the Relocation
      Space shall be deemed to be the Premises and the Fixed Annual Rent and
      Additional Rent
      payable under this Lease shall be adjusted, if necessary, so as to reflect
      any
      difference between
      the deemed rentable square foot area of the original Premises and said
      Relocation Space.

     

    45.02    
      Provided that Tenant is not in default under this Lease, Landlord shall (i)
      at
      Landlord's cost and expense, remove and reinstall Tenants' personal property,
      trade fixtures and equipment
      in the Relocation Space (“Landlord's
      Relocation Work")
      and
      (ii) compensate Tenant for
      Tenant's actual, reasonable, out-of-pocket moving and related expenses upon
      Tenant's submission
      of paid invoices therefor. Landlord shall complete Landlord's Relocation Work
      on
      or before the Relocation Effective Date provided that Tenant cooperates with
      Landlord and gives Landlord full access to the Premises to facilitate the
      performance thereof.

     

    45.03    
      Following any relocation undertaken pursuant to this Article, Tenant
      shall

    

    
      
        
        

      

      
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    promptly
      execute and deliver an agreement confirming such relocation and fixing any
      corresponding
      adjustments in Fixed Annual Rent and Additional Rent payable under this Lease,
      but any failure to execute such an agreement by Tenant shall not affect such
      relocation and adjustments as determined by Landlord.

     

    45.04    
      Notwithstanding anything contained herein to the contrary, Landlord and Tenant
      agree that in no event shall the fixed annual rent payable hereunder be
      increased in the event the Relocation Space is larger than the
      Premises.

     

    ARTICLE
      46

     

    FUTURE
      CONDOMINIUM CONVERSION

     

    46.01    
      Tenant acknowledges that the Building and the land of which the Premises form
      a
      part may be subjected to the condominium form of ownership prior to the end
      of
      the Term of this Lease. Tenant agrees that if, at any time during the Term,
      the
      Building and the land shall be subjected to the condominium form of ownership,
      then, this Lease and all rights of Tenant hereunder
      are and shall be subject and subordinate in all respects to any condominium
      declaration and
      any
      other documents (collectively, the "Declaration”)
      which
      shall be recorded in order to convert the Building and the land of which the
      Premises form a part to a condominium form of ownership in accordance with
      the
      provisions of Article 9-B of the Real Property Law of the State of New York
      or
      any successor thereto. If any such Declaration is to be recorded, Tenant, upon
      request of Landlord, shall enter into an amendment of this Lease in such
      respects as shall be necessary to conform to such condominiumization, including,
      without limitation, appropriate adjustments
      to Real Estate Taxes payable during the Base Tax Year and Tenant's Share, as
      such terms
      are
      defined in Article 32 hereof provided that it does not materially increase
      Tenant's obligations
      under the Lease or materially
      decrease the marketable square footage of the Premises.

     

    ARTICLE
      47

     

    MISCELLANEOUS

     

    47.01    
      This Lease represents the entire understanding between the parties with
      regard
      to
      the matters addressed herein and may only be modified by written agreement
      executed by all
      parties hereto. All prior understandings or representations between the parties
      hereto, oral or written,
      with regard to the matters addressed herein are hereby merged herein. Tenant
      acknowledges
      that neither Landlord nor any representative or agent of
      Landlord
      has made any representation
      or warranty, express or implied, as to the physical condition, state of repair,
      layout, footage
      or use of the Premises or any matter or thing affecting or relating to Premises
      except as specifically set forth in this Lease. Tenant has not been induced
      by
      and has not relied upon any statement, representation or agreement, whether
      express or implied, not specifically set forth in this Lease. Landlord shall
      not
      be liable or bound in any manner by any oral or written statement, broker's
      "set-up", representation, agreement or information pertaining to the Premises,
      the Building
      or this Agreement furnished by any real estate broker, agent, servant, employee
      or other

     

    
      
        
        

      

      
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    person,
      unless specifically set forth herein, and no rights are or shall be acquired
      by
      Tenant by implication
      or otherwise unless expressly set forth herein. This Lease shall be construed
      without regard
      to
      any presumption or other rule requiring construction against the party causing
      this agreement
      to be drafted.

     

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    ARTICLE
      48

     

    COMPLIANCE
      WITH LAW

     

    48.01    
      If, at any time during the Term hereof, Landlord expends any sums for
alterations
      or improvements to the Building which are required to be made pursuant to any
      law, ordinance or governmental regulation, Tenant shall pay to Landlord, as
      Additional Rent, Tenant's Share
      of
      such cost within ten (10) days after demand therefor; provided, however, that
      if
      the cost of
      such
      alteration or improvement is one which is required to be amortized over a period
      of time pursuant to applicable governmental regulations, Tenant shall pay to
      Landlord, as Additional Rent, during
      each year in which occurs any part of the Term, Tenant's Share of the cost
      thereof amortized
      on a straight line basis over an appropriate period, but not more than seven
      (7)
      years. In no event shall Tenant's Share exceed the sum of one (S1.00) dollar
      per
      rentable square foot of space
      per
      calendar year during the term of this Lease. Notwithstanding anything to the
      contrary contained herein, in the event that the requirement for the performance
      of any such alteration of improvement is attributable to the actions,
      installations, use or manner of use of the Premises by Tenant, then in such
      event Tenant shall be responsible to pay the entire cost imposed by Landlord
      with respect to such alteration of improvement.

     

    IN
      WITNESS WHEREOF, the said Landlord, and the Tenant have duly executed
this
      Lease as of the day and war first above written.

     

    
      
        	Witness:	 	 	SLG
                GRAYBAR
                SUBLEASE LLC, as Landlord
	/s/ 	 	 	By: 
	
                

              	 	 	
                

              
	Name:
                Lisa
                Manning
Title: Adm Asst.
	 	 	Name:
                Gerard T.
                Nocera
Title: COO

      

    
      	 	 	 	FERMAVIR
              RESEARCH,
              INC., as Tenant
	 	 	 	By: 
	
            	 	 	
              

            
	
            	 	 	Name:
              Geoffrey
              Henson
Title: CEO

    

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      49

     

    RULES
      AND REGULATIONS

    MADE
      A PART OF THIS LEASE

     

    1.    
No
      animals, birds, bicycles or vehicles
      shall be brought into or kept in the Premises.
      The Premises shall not be used for manufacturing or commercial repairing or
      for
      sale or
      display of merchandise or as a lodging place, or for any immoral or illegal
      purpose, nor shall the
      Premises be used for a public stenographer or typist; barber or beauty shop;
      telephone, secretarial
      or messenger service; employment, travel or tourist agency; school or classroom:
      commercial
      document reproduction; or for any business other than specifically provided
      for
      in the Tenant's lease. Tenant shall not cause or permit in the Premises any
      disturbing noises which may interfere
      with occupants of this or neighboring Buildings, any cooking or objectionable
      odors, Or any
      nuisance of any kind, or any inflammable or explosive fluid, chemical or
      substance, Canvassing,
      soliciting and peddling in the Building are prohibited, and each tenant shall
      cooperate so
      as to
      prevent the same.

     

    2.    
The
      toilet rooms and other water apparatus shall not be used for any purposes other
      than those for which they were constructed, and no sweepings, rags, ink,
      chemicals or other unsuitable
      substances shall be thrown therein. Tenant shall not place anything out of
      doors, windows
      or skylights, or into hallways, stairways or elevators, nor place food or
      objects on outside
      window sills, Tenant shall not obstruct or cover the halls, stairways and
      elevators, or use them
      for
      any purpose other than ingress and egress to or from Tenant's Premises, nor
      shall skylights.
      windows, doors and transoms that reflect or admit light into the Building be
      covered or obstructed
      in any way, All drapes and blinds installed by Tenant on any exterior window
      of
      the Premises
      shall conform in style and color to the Building standard.

     

    3.    
Tenant
      shall not place a load upon any floor of the Premises in excess of load
      per
      square foot which such floor was designed to carry and which is allowed by
      law.
Landlord
      reserves the right to prescribe [he weight and position of all safes, file
      cabinets and filing equipment in the Premises. Business machines and mechanical
      equipment shall be placed and maintained
      by Tenant, at Tenant's expense, only with Landlord's consent and in settings
      approved
      by Landlord to control weight, vibration, noise and annoyance. Smoking or
      carrying lighted
      cigars, pipes or cigarettes in the elevators of the Building is
      prohibited.

     

    4.    
Tenant
      shall not move any heavy or bulky materials into or out of the Building
or
      make
      or receive large deliveries of goods, furnishings, equipment or other items
      without Landlord's
      prior written consent, and then only during such hours and in such manner as
      Landlord
      shall approve and in accordance with Landlord's rules and regulations pertaining
      thereto.
      If any material or equipment requires special handling, Tenant shall employ
      only
      persons holding a Master Rigger's License to do such work, and all such work
      shall comply with all legal requirements.
      Landlord reserves the right to inspect all freight to be brought into the
      Building, and
      to
      exclude any freight which violates any rule, regulation or other provision
      of
      this Lease.

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

     

    5.    
No
      sign, advertisement, notice or thing
      shall be inscribed, painted or affixed on any
      part
      of the Building, without the prior written consent of Landlord. Landlord may
      remove anything
      installed in violation of this provision, and Tenant shall pay the cost of
      such
      removal and any
      restoration costs. Interior signs on doors and directories shall be inscribed
      or
      affixed by Landlord
      at Tenant's expense. Landlord shall control the color, size, style and location
      of all signs,
      advertisements and notices. No advertising of any kind by Tenant shall refer
      to
      the Building,
      unless first approved in writing by Landlord.

     

    6.    
No
      article shall be fastened to, or holes drilled or nails or screws driven into,
      the ceilings.
      walls, doors or other portions of the Premises, nor shall any part of the
      Premises be painted,
      papered or otherwise covered, or in any way marked or broken, without the prior
      written consent of Landlord.

     

    7.    
No
      existing locks shall be changed, nor shall any additional locks or bolts of
      any
kind
      be
      placed upon any door or window by Tenant, without the prior written consent
      of
Landlord.
      Two (2) sets of keys to all exterior and interior locks shall be furnished
      to
      Landlord. At
      the
      termination of this Lease, Tenant shall deliver to Landlord all keys for any
      portion of the Premises
      or Building. Before leaving the Premises at any time, Tenant shall close all
      windows and close
      and
      lock all doors.

     

    8.    
No
      Tenant
      shall purchase or obtain for use in the Premises any spring water, ice,
      towels, food, bootblacking, barbering or other such service furnished by any
      company or person
      not approved by Landlord. Any necessary exterminating work in the Premises
      shall
      be done
      at
      Tenant's expense, at such times, in such manner and by such company as Landlord
      shall require.
      Landlord reserves the right to exclude from the Building, from 6:00 p.m. to
      8:00
      a.m., and
      at
      all hours on Sunday and legal holidays, all persons who do not present a pass
      to
      the Building
      signed by Landlord. Landlord will furnish passes to all persons reasonably
      designated by Tenant.
      Tenant shall be responsible for the acts of all persons to whom passes are
      issued at Tenant's
      request.

     

    9.    
Whenever
      Tenant shall submit to Landlord any plan, agreement or other document
      for Landlord's consent or approval, Tenant agrees to pay Landlord as Additional
      Rent, on
      demand, an administrative fee equal to the sum of the reasonable fees of any
      architect, engineer or
      attorney employed by Landlord to review said plan, agreement or document and
      Landlord's administrative costs for same.

     

    10.    
The
      use in the Premises of auxiliary
      heating devices, such as portable electric heaters, heat lamps or other devices
      whose principal function at the time of operation is to produce space heating,
      is prohibited.

     

    11.    
Tenant
      shall keep all doors from the
      hallway to the Premises closed at all times except
      for use during ingress to and egress from the Premises. Tenant acknowledges
      that
      a violation
      of the terms of this paragraph may also constitute a violation of codes, rules
      or regulations
      of governmental authorities having or asserting jurisdiction over the Premises,
      and

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

     

    Tenant
      agrees to indemnify Landlord from any fines, penalties, claims, action or
      increase in fire insurance rates which might result from Tenant's violation
      of
      the terms of this paragraph.

     

    12.    
Tenant
      shall be permitted to maintain an "in-house" messenger or delivery service
      within the Premises, provided that Tenant shall require that any messengers
      in
      its employ affix
      identification to the breast pocket of their outer garment, which shall bear
      the
      following information: name of Tenant, name of employee and photograph of the
      employee. Messengers in Tenant's employ shall display such identification at
      all
      time. In the event that Tenant or any agent, servant or employee of Tenant,
      violates the terms of this paragraph, Landlord shall be entitled to terminate
      Tenant's permission to maintain within the Premises in-house messenger or
      delivery service
      upon written notice to Tenant.

     

    13.    
Tenant
      will be entitled to three (3) listings on the Building lobby directory
board,
      without charge. Any additional directory listing (if space is available), or
      any
      change in a prior
      listing, with the exception of a deletion, will be subject to a fourteen
      ($14.00) dollar service charge, payable as Additional Rent.

     

    14.    
In
      case
      of any conflict or inconsistency between any provisions of this Lease and any
      of
      the rules and regulations as originally or as hereafter adopted, the provisions
      of this Lease
      shall control.

      

    
       

      47License Agreement between FermaVir Research, Inc. and University College Cardiff
      Consultants Limited Dated February 2, 2005

     

     

    
      Exhibit
        10.8

       

      CONFIDENTIAL
        TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED
        HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
        ARE DESIGNATED AS *. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
        SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

    

     

    PATENT
      AND TECHNOLOGY LICENSE AGREEMENT

     

    
      	
              This
                AGREEMENT (“AGREEMENT”) is
                made
                on this
                2nd
                day of February 2005 by and among

            
	 	 
	
              (1)

            	
              UNIVERSITY
                COLLEGE CARDIFF CONSULTANTS LIMITED (“LICENSOR”), a company
                incorporated under the laws of England and Wales whose address is
                30-36
                Newport
                Road, Cardiff, CF24 0DE, United Kingdom and

            
	 	 
	
              (2)

            	
              CONTRAVIR
                RESEARCH INCORPORATED a
                Delaware
                limited liability company having a principal place of business located
                at
                595 Stewart Avenue, Garden City, New York 11530
                {“LICENSEE”)

            
	 
	 
	
              RECITALS

            
	
              A.

            	
              LICENSOR
                was established, amongst other things, to hold,
                to
                manage and to
                exploit
                intellectual property generated by CARDIFF.

            
	
              B.

            	
              LICENSOR
                and REGA are the joint owners of the PATENT RIGHTS and the TECHNOLOGY
                RIGHTS.

            
	
              C.

            	
              Pursuant
                to the terms of an agreement dated 24 September 1998 as amended by
                a
                deed
                of
                variation
                dated 23 December 2004 LICENSOR has an irrevocable, exclusive worldwide
                right
                and licence under the PATENT RIGHTS and the TECHNOLOGY RIGHTS to
                manufacture,
                use, sell or otherwise deal in or with products utilising the PATENT
                RIGHTS
                and/or the TECHNOLOGY RIGHTS and/or incorporating the LICENSED SUBJECT
                MATTER together with the right to grant sublicenses
                thereunder.

            
	
              D.

            	
              LICENSOR
                desires to have the LICENSED SUBJECT MATTER developed in the LICENSED
                FIELD.

            
	
              E. 

            	
              LICENSEE
                wishes to obtain a sublicense from LICENSOR to
                practice
                LICENSED SUBJECT MATTER in LICENSED TERRITORY in LICENSED
                FIELD.

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

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              TABLE
                OF CONTENTS

            	 
	 	 
	
              RECITALS

            	
              Page 1

            
	
              I.
                EFFECTIVE DATE

            	
              Page
                3

            
	
              II.
                DEFINITIONS

            	
              Page
                3

            
	
              III.
                SUBLICENSE

            	
              Page 4

            
	
              IV.
                CONSIDERATION,
                PAYMENTS AND REPORTS

            	
              Page 5

            
	
              V.
                SPONSORED
                RESEARCH

            	
              Page 7

            
	
              VI.
                PATENTS
                AND INVENTIONS

            	
              Page 7

            
	
              VII.
                INFRINGEMENT
                BY THIRD PARTIES

            	
              Page
                8

            
	
              VIII.
                PATENT
                MARKING

            	
              Page 9

            
	
              IX.
                INDEMNIFICATION
                AND INSURANCE

            	
              Page
                9

            
	
              X.
                USE
                OF NAMES OF LICENSOR, CARDLFF, REGA AND KUL

            	
              Page 10

            
	
              XI.
                CONFIDENTIAL INFORMATION AND PUBLICATION

            	
              Page 10

            
	
              XII.
                ASSIGNMENT

            	
              Page 11

            
	
              XIII.
                TERM AND TERMINATION

            	
              Page
                12

            
	
              XIV.
                WARRANTY:
                SUPERIOR-RIGHTS

            	
              Page
                14

            
	
              XV.
                PARENT
                COMPANY GUARANTEE

            	
              Page
                15

            
	
              XVI.
                GENERAL

            	
              Page 15

            
	
              SIGNATURES

            	
              Page 17

            
	
              EXHIBIT
                1

            	
              Page
                18

            
	
              EXHIBIT
                II

            	
              Page 20

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              I.    
                EFFECTIVE
                DATE

            
	 	 
	
              1

            	
              This AGREEMENT
                is
                effective as
                of the date written
                above (“EFFECTIVE
                DATE”).

            
	 
	
              II.    
                DEFINITIONS

            
	
            
	 	
              As
                used
                in
                this
                AGREEMENT, the
                following terms have the
                meanings
                indicated:

            
	
              2.1

            	
              AFFILIATE
                means any business entity
                more
                than fifty
                percent
                (50%) owned by LICENSEE,
                any business entity which owns more
                than
                fifly percent
                (50%) of
                LICENSEE,
                or
                any business entity that
                is
                more than fifty percent (50%)
                owned
                by a business
                entity that owns
                more than
                fifty percent (50%) of
                LICENSEE.

            
	
              2.2

            	
              CARDIFF
                means Cardiff
                University (the public name of
                the University
                of Wales, Cardiff)
                which
                has an administrative address at 30-36
                Newport
                Road, Cardiff,
                United Kingdom,
                CF24
                0DE,

            
	
              2.3

            	
              KUL
                means
                Katholieke Universiteit Leuven
                which
                has
                administrative offices
                at Oude Markt
                13, B-3000
                Leuven, Belgium and is
                represented
                by its technology
                transfer
                office,
                KU
                Leuven
                Research and
                Development
                of
                Groot Beginjnhop 58-59, B-3000
                Leuven,
                Belgium.

            
	
              2.4

            	
              LICENSED
                FIELD with
                respect
                to
                LICENSED SUBJECT MATTER shall mean all fields
                of
                use.

            
	
              2.5

            	
              LICENSED
                PRODUCTS means
                any product
                or
                service (a)
                comprising
                or
                derived
                from
                LICENSED
                SUBJECT MATTER and that is covered by: (i) a claim
                in
                a pending patent application
                which
                claim
                has not been finally disallowed without the
                possibility
                of
                appeal
                or refiling;
                or
                (ii) a claim in an issued,
                unexpired
                patent
                that has
                not been held
                invalid by
                a
                non-appealed or unappealable decision by a court
                or
                other appropriate
                body
                of
                competent
                jurisdiction; and/or (b)
                which
                uses
                or incorporates
                TECHNOLOGY RIGHTS
                unless
                LICENSEE can demonstrate to LICENSOR's
                reasonable satisfaction
                that
                such
                TECHNOLOGY
                RIGHTS
                as are
                used or incorporated are
                not
                of a
                confidential nature and in
                assessing
                whether
                or
                not such TECHNOLOGY
                RIGHTS
                are
                of a
                confidential nature any
                such TECHNOLOGY RIGHTS
                that
                are in
                the public
                domain
                as
                a result of
                any
                act or omission
                by
                LICENSEE
                (other
                than the
                inclusion
                or reference to
                such TECHNOLOGY
                RIGHTS
                in a
                published
                application
                or issued patent)
                shall
                be deemed
                to be of
                a confidential
                nature.

            
	
              2.6

            	
              LICENSED
                SUBJECT MATTER means
                inventions and
                discoveries covered
                by PATENT
                RIGHTS or
                TECHNOLOGY
                RIGHTS.

            
	
              2.7

            	
              LICENSED
                TERRITORY means
                the
                whole world.

            
	
              2.8

            	
              NET
                SALES means,
                in the case of
                SALES on arm’s length terms, the annual gross revenues
                received
                from
                such SALES
                or,
                in the
                case of
                SALES
                not
                on arm’s length terms, the
                annual
                gross
                revenues
                that would
                have
                been received from such
                SALES
                had
                they been
                on arm's
                length terms less, in each case, reasonable sales discounts
                actually granted, sales
                and/or use taxes actually
                paid,
                import
                and/or export duties
                actually paid, reasonable outbound
                transportation
                actually prepaid
                or
                allowed,
                and
                reasonable
                amounts actually allowed
                or credited due to
                returns (not exceeding the
                original
                billing or
                invoice
                amount).

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              2.9

            	
              PARTIES
                shall mean LICENSOR and/or LICENSEE as the context requires; and
                parties
                shall mean LICENSOR and/or
                LICENSEE and/or GUARANTOR
                as
                the context
                requires,

            
	
              2.10

            	
              PATENT
                RIGHTS means LICENSOR and REGA’s rights in any patents,
                and/or
                patent
                applications, whether domestic or
                foreign,
                and all
                divisionals,
                continuations, continuations-in-part,
                reissues, reexaminations or extensions thereof, including
                but
                not
                limited
                to supplementary protection certificates
                and
                any
                letters
                patent that issue
                thereon as
                defined in
                Exhibit 1
                attached
                hereto,

            
	
              2.11

            	
              REGA
                means Rega Foundation whose address is
                Minderbroedersstraat
                10,
                B-3000
                Leuven,
                Belgium. Rega Foundation is
                a
                constituent of
                KUL.

            
	
              2.12

            	
              SALE
                or SOLD means the transfer or disposition of
                a LICENSED
                PRODUCT by
                LICENSEE
                or
                any
                AFFILIATE
                for value
                to a person, firm, company or
                organisation other
                than LICENSEE.

            
	
              2.13

            	
              TECHNOLOGY
                RIGHTS means LICENSOR’s and REGA’s rights
                in any
                technical
                information,
                know-how, processes, procedures, compositions, devices, methods,
                formulae,
                protocols, techniques, or
                data
                in
                existence
                at the EFFECTIVE DATE, which
                are
                not claimed in PATENT RIGHTS
                but that
                are
                necessary
                for practicing
                PATENT
                RIGHTS.

            
	
              III.    
                SUBLICENSE

            
	
              3.1

            	
              LICENSOR
                hereby grants to
                LICENSEE a royalty-bearing,
                and,
                subject
                to the provisions
                of
                sections 3.5 and 6.2 hereinbelow, exclusive sublicense under PATENT
                RIGHTS
                and
                'TECHNOLOGY
                RIGHTS to manufacture, have manufactured, use, import, offer to
                sell and/or
                sell
                LICENSED PRODUCTS within LICENSED TERRITORY for use
                within LICENSED
                FIELD. This
                grant
                is subject to Sections 14.2, and
                14.3
                hereinbelow, the payment by LICENSEE to LICENSOR of all consideration
                as
                provided herein and the
                timely
                payment
                of all
                amounts
                due under any
                related
                sponsored research agreement between
                CARDIFF and LICENSEE or between KUL and
                LICENSEE
                or
                between CARDIFF,
                KUL and LICENSEE in effect during this
                AGREEMENT.

            
	
              3.2

            	
              LICENSEE
                may grant sublicenses under LICENSED SUBJECT MATTER consistent
                with
                the terms of this AGREEMENT provided that LICENSEE is responsible
                for
                such sublicensees,
                and for
                diligently
                collecting all amounts due to
                LICENSEE
                from such sublicensees.
                If
                any
                such sublicensee becomes bankrupt, insolvent or is placed in the
                hands
                of a receiver or trustee, LICENSEE, acting
                under
                applicable law and
                in a timely
                manner,
                agrees to use its best reasonable efforts to collect all
                consideration
                owed to LICENSEE,
                including having the sublicense agreement confirmed or rejected in
                a
                court
                of
                proper jurisdiction,
                if
                commercially
                reasonable.

            
	
              3.3

            	
              LICENSEE
                must deliver to
                LICENSOR
                a true and correct copy of
                each
                sublicense
                granted
                by
                LICENSEE
                and any modification or
                termination
                thereof, within thirty (30)
                calendar
                days after
                execution,
                modification, or termination.

            
	
              3.4

            	
              If
                this
                AGREEMENT is terminated pursuant to Article XIII-Term and Termination,
                LICENSOR
                agrees to accept as
                successors to
                LICENSEE, existing sublicensees in
                good standing
                at
                the date of termination provided that each such sublicensee consents
                in

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              writing
                to be bound by such of the terms and conditions of this AGREEMENT
                as
                LICENSOR
                requires.

            
	
              3.5

            	
              Nothing
                contained in this AGREEMENT shall be interpreted or construed in
                any way
                as preventing
                LICENSOR from permitting CARDIFF and/or KUL and/or RIGA to undertake
                or to Continue with any non-commercial research utilising PATENT
                RIGHTS,
                TECHNOLOGY RIGHTS and/or LICENSED SUBJECT MATTER.

            
	
              IV.    
                CONSIDERATION, PAYMENTS AND REPORTS

            
	
              4.1

            	
              In
                consideration of rights granted by LICENSOR to LICENSEE under this
                AGREEMENT,
                LICENSEE agrees to pay to LICENSOR the
                following:

            
	
               

            	
              (a) 

            	
              A
                license fee in the amount of two hundred and seventy thousand dollars
                (US$270,000)
                which shall include all out-of-pocket expenses incurred by LICENSOR
                prior to
                the
                EFFECTIVE DATE in filing, prosecuting, enforcing and maintaining
                PATENT RIGHTS. This fee will not reduce the amount of any other
                payment
                provided for in this Article IV. The license fee shall be paid
                in
                two
                (2) installments,
                after the LICENSEE has received an invoice for the amount from
                LICENSOR
                and, in the case of the installment referred to in (ii) below, after
                LICENSEE
                has received from LICENSOR written documentation confirming that
                such
                sum has been paid or is owing by LICENSOR, as follows:

            
	 	 	
              (i)

            	
              one
                hundred and five thousand dollars (US$105,000) shall be paid within
                thirty
                (30) calendar days of the Effective Date; and

            
	 	 	
              (ii)

            	
              one
                hundred and sixty five thousand dollars (US$165,000) shall be paid
                within
                ninety (90) calendar days of the Effective Date;

            
	 	
              (b)
                

            	
              A
                running royalty equal to * percent (*%)
                of NET SALES for NET SALES up
                to and including * dollars (US$*), a running royalty
                equal to * percent (*%) of NET SALES for NET SALES in excess
                of *
                dollars (US$*) and up to and including * dollars
                (US$*), and a running royalty equal to *
                percent (*%) of NET SALES for NET SALES in excess of * dollars
                (US$*);

            
	 	
              (c)

            	
              Milestone
                payments upon occurrence of the following milestone
                events:

            
	 	 	
              (i)

            	
              upon
                initiation of a Phase I clinical trial for a LICENSED PRODUCT,
                *
                dollars (US$*);

            
	 	 	
              (ii)

            	
              upon
                initiation of a Phase II clinical trial for a LICENSED PRODUCT,
                *
                dollars (US$*);

            
	 	 	
              (iii)

            	
              upon
                initiation of a Phase III clinical trial for a LICENSED PRODUCT,
                *
                dollars (US$*):, and

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (iv) 

            	
              upon
                approval of
                the
                first
                NDA
                for any LICENSED PRODUCT, * dollars
                (US$*);

            
	 	
              LICENSEE
                will notify
                LICENSOR within thirty (30)
                calendar
                days of each and any
                such milestone event being reached. LICENSEE
                will pay
                the above
                milestone payments
                to
                LLCENSOR
                in respect of each
                and
                every LICENSED PRODUCT that
                reaches such
                milestone
                event
                to which
                such payment relates and irrespective
                of
                whether
                it is LICENSEE or an AFFILLATE that
                initiates
                or
                is responsible
                for
                achieving
                the relevant milestone event PROVIDED THAT
                the
                milestone payments
                required by this section 4.1(c) shall apply
                only to (1) the
                first LICENSED
                PRODUCT reaching each milestone event for a first therapy area
                which
                relates
                to treatment of
                VZV
                and (2)
                the first
                LICENSED PRODUCT reaching
                each milestone event for a second therapy area which relates to
                treatment
                of
                HCMV; and PROVIDED FURTHER THAT nothing
                in
                this
                section
                4. 1(c) shall
                oblige
                LICENSEE
                to make
                multiple milestone payments for
                the
                same milestone
                event
                for any therapy area
                or
                upon reaching milestone events
                in
                more than
                two therapy
                areas
                in total.

            
	 	
              (d) 

            	
              For
                any sublicense pursuant to
                Section 3.2
                hereinabove (other than
                a sublicense
                to an
                AFFILIATE), *
                percent
                (*%)
                of
                all royalties,
                up
                front payments,
                and milestone payments due to
                LICENSEE.

            
	
              4.2

            	
              LICENSEE
                in furtherance of the objectives of this AGREEMENT agrees to
                make
                or
                to
                procure
                that
                its AFFILIATES
                make good faith expenditures towards the clinical development
                of
                at
                least
                one
                LICENSED PRODUCT, in a minimum amount of
                two million
                dollars
                (US$2,000,000),
                such expenditures
                to
                be
                committed within thirty six (36)
                months
                following the
                EFFECTIVE
                DATE. Upon written request, LICENSEE shall provide
                to
                LICENSOR written
                documentation
                of such expenditures at the conclusion of
                such
                thirty six
                (36) month
                period.

            
	
              4.3

            	
              During
                the term of this
                AGREEMENT
                and for one year thereafter, LICENSEE agrees to
                keep
                complete and accurate records of
                its
                and its
                AFFILIATES’
                SALES and NET
                SALES
                and its and its AFFILIATES Section 4.2
                expenditures
                in sufficient detail to enable
                the royalties and other payments due hereunder and LICENSEE's compliance
                with
                this AGREEMENT to
                be determined,
                LICENSEE agrees to permit LICENSOR or
                its
                representatives, at
                LICENSOR’s
                expense, to
                periodically
                examine LICENSEE’S and
                any
                AFFILIATES’
                books, ledgers, and
                records
                during regular business
                hours
                for the
                purpose
                of
                and
                to
                the
                extent necessary to
                verify
                any report required under
                this
                AGREEMENT. If any amounts due to LICENSOR are determined to have
                been
                underpaid
                in
                an amount equal to
                or
                greater than five percent (5%) of
                the
                total amount due
                during
                the period
                so
                examined, then
                LICENSEE
                will pay the cost of
                the
                examination plus
                accrued
                interest at
                eight
                percent (8%) per annum or the maximum rate allowed by law, whichever
                is lower. In the event that
                LICENSEE
                has overpaid any
                payment
                due to LICENSOR
                in
                an
                amount equal to or
                greater
                than five
                percent
                (5%) of the total, LICENSOR
                will return any such
                overpayment
                to LICENSEE after deduction
                of LICENSOR's
                reasonable examination expenses.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              4.4

            	
              Within
                thirty (30) calendar days following each anniversary of the EFFECTIVE
                DATE, LICENSEE
                will deliver to LICENSOR a written progress report as to LICENSEE’s and
                any
                suhlicensee's efforts and accomplishments during the preceding year
                in
                diligently commercializing
                LICENSED SUBJECT MATTER in LICENSED TERRITORY and LICENSEE’s
                and sublicensees’ commercialization plans for the upcoming
                year.

            
	
              4.5

            	
              All
                amounts payable hereunder by LICENSEE will be paid in United States
                dollars without
                set-off, deductions for taxes, assessments, fees, or charges of any
                kind.

            
	
              4.6

            	
              No
                payments due or royalty rates owed under this AGREEMENT will be reduced
                as
                the result
                of co-ownership of LICENSED SUBJECT MATTER by LICENSOR. and another
                party,
                including, but not limited to, LICENSEE.

            
	
              4.7

            	
              LICENSEE
                shall not be obligated to pay multiple royalties to LICENSOR for
                a single
                LICENSED
                PRODUCT in the event said LICENSED PRODUCT is covered by more than
                one patent application and/or patent that is included in the PATENT
                RIGHTS.

            
	
              4.8

            	
              LICENSEE
                shall not be obliged to pay multiple milestone payments per milestone
                event to
                LICENSOR for a single LICENSED PRODUCT

            
	
              4.9

            	
              Any
                and all sums to be paid to LICENSOR pursuant to this Agreement shall
                be
                paid by LICENSEE
                to LICENSOR at six (6) calendar monthly intervals.

            
	
              V.    
                SPONSORED
                RESEARCH

            
	
               5.1

            	
              If
                LICENSEE desires to sponsor research for or related to the LICENSED
                SUBJECT MATTER.
                and particularly where LICENSEE receives payments for sponsored research
                pursuant
                to a sublicense granted by LICENSEE under this AGREEMENT, LICENSEE
                (a)
                will notify CARDIFF and KUL in writing of all opportunities to conduct
                this sponsored
                research (including clinical trials, if applicable), (b) solicit
                research
                and/or clinical
                proposals from CARDIFF and KUL for this purpose, and (c) will give
                good
                faith consideration to funding the proposals at CARDIFF and
                KUL.

            
	
              VI.    
                PATENTS AND INVENTIONS

            
	
               6.1

            	
              After
                the EFFECTIVE DATE, LICENSEE will at its sole cost and expense (a)
                within
                applicable
                time limits prosecute and, subject to the provisions of section 6.2
                hereinbelow, maintain
                in force for the full term thereof all patent applications and patents
                comprised within
                PATENT RIGHTS together with any patents divided out therefrom, (b)
                within
                applicable
                time limits apply for, prosecute and, subject to the provisions of
                section
                6.2 hereinbelow,
                maintain in force for the full term thereof all and any possible
                extensions to
                or
                continuations of any patents within PATENT RIGHTS including but not
                limited to supplementary
                patent certificates and (c) within applicable time limits file, prosecute
                and maintain
                in force any patent applications in respect of any improvements to
                PATENT
                RIGHTS
                developed or acquired by L1CENSEE after the EFFECTIVE DATE and any
                patents
                granted pursuant thereto or divided out therefrom and LICENSEE will
                prepare and file the appropriate patent applications, using an attorney
                or
                agent of LICENSEE's choosing, and LICENSEE will pay the cost of searching,
                preparing, filing, prosecuting and
                maintaining same. LICENSEE will promptly provide LICENSOR with a
                copy of
                any application
                filed by or on behalf of LICENSEE, as well as copies of any correspondence
                and
                documents received or filed by or on behalf of LICENSEE during filing,
                prosecution

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              and/or
                maintenance of any such patent applications and patents including
                but not
                limited to
                all correspondence received from or sent to any patent offices relating
                (whether in whole
                or in part) to PATENT RIGHTS . LICENSOR agrees to provide copies
                of all
                information
                in its possession (including but not limited to data, reports or
                memoranda) necessary
                to LICENSEE for the prosecution of any current patent application
                comprised in
                PATENT RIGHTS.

            
	
               6.2

            	
              LICENSEE
                shall promptly notify LICENSOR if it does not intend (a) to pursue
                any
                patent
                application comprised within PATENT RIGHTS or relating to any improvements
                to
                PATENT RIGHTS developed or acquired by LICENSEE after EFFECTIVE DATE;
                and/or
                (b) to continue to maintain in force any patents within PATENT RIGHTS
                or
                relating
                to any improvements to PATENT RIGHTS. If LICENSEE does not intend
                to
                pursue
                any such patent application or to maintain in force any such patent,
                it
                will promptly
                notify LICENSOR such that LICENSOR, if it so wishes, may take over
                the
                prosecution of such patent application or the maintenance of such
                patent.
                LICENSOR may,
                at its sole option and discretion, file or prosecute or maintain
                such
                patent application or
                patent at its own expense. In respect of any patent application or
                patent
                relating to improvements
                to PATENT RIGHTS, LICENSEE shall assign to LICENSOR its entire
                right,
                title and interest in and to the invention which is the subject of
                such
                patent application
                and such patent application, subject to reimbursement of LICENSEE’s
                acquisition,
                maintenance and transfer costs, if applicable. LICENSEE agrees to
                co-operate
                with LICENSOR by making available all information in its possession
                (including but
                not limited to data, reports or memoranda) reasonably necessary to
                LICENSOR for the
                prosecution of any patent application or for the filing of any patent
                application in respect
                of any invention assigned by LICENSEE to LICENSOR hereunder. Where
                LICENSEE
                decides in accordance with this section 6.2 not to prosecute any
                patent
                application
                comprised within PATENT RIGHTS or to maintain in force any patent
                comprised
                within PATENT RIGHTS LICENSOR shall be entitled, at its option and
                in its
                sole
                discretion, on written notice to LICENSEE either to render the license
                granted to LICENSEE
                in respect of such patent or patent application non-exclusive or
                to
                terminate such
                licence.

            
	
               6.3

            	
              LICENSEE
                shall notify LICENSOR in good time, prior to making or attempting
                to make
                any
                change to or restriction of any claim of any patent application or
                patent
                comprised within
                PATENT RIGHTS to afford LICENSOR, at LICENSOR’s own expense, an
                opportunity
                to suggest an alternative to LICENSEE’s proposal.

            
	
               6.4

            	
              The
                PARTIES agree that they share a common legal interest to get valid
                enforceable patents
                and that LICENSOR and LICENSEE, will keep all privileged information
                received
                pursuant to this Section VI confidential.

            
	
              VII.    
                INFRINGEMENT BY THIRD PARTIES

            
	
               7.1

            	
              LICENSEE,
                at its discretion and expense, may enforce any patent exclusively
                licensed
                hereunder
                against any infringement by third parties and is entitled to retain
                recovery from such
                enforcement, After reimbursement of LICENSEE’S reasonable legal costs and
                expenses
                related to such recovery, LICENSEE agrees to pay LICENSOR ten percent
                (I0%)
                of any recovery (including punitive damages) awarded for patent
                infringement. LICENSEE
                must notify LICENSOR in writing of any potential infringement within
                sixty

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (60)
                calendar days of knowledge thereof. If LICENSEE does not file suit
                against
                a substantial
                infringer within six (6) months of knowledge thereof, then LICENSOR
                may,
                at
                its sole discretion and expense, enforce any patent licensed hereunder
                on
                behalf of itself
                and LICENSEE, with LICENSOR retaining all recoveries from such enforcement
                and/or
                reduce the sublicense granted hereunder to non-exclusive with respect
                to
                the patent(s)
                at issue.

            
	
              7.2

            	
              In
                any suit or dispute involving an allegation of infringement, the
                PARTIES
                agree to cooperate
                fully with each other. At the request and expense of the party bringing
                suit, the other
                party will permit reasonable access during regular business hours,
                to all
                relevant personnel,
                records, papers, information, samples, specimens, and the like in
                its
                possession.

            
	
              VIII.    
                PATENT MARKING

            
	
              8.I

            	
              LICENSEE
                agrees to permanently and legibly mark all packaging containing individual
                LICENSED
                PRODUCT(S), documentation therefor, and when possible for actual
                LICENSED
                PRODUCT(S) SOLD by LICENSEE, and/or sublicensees of LICENSEE, LICENSED
                PRODUCTS with the number of any applicable patent(s) licensed hereunder
                in accordance with the relevant country's patent laws, including
                Title 35,
                United
                States Code.

            
	
              IX.    
                 INDEMNIFICATION AND INSURANCE

            
	
              9.1

            	
              LICENSEE
                agrees to hold harmless and indemnify LICENSOR, CARDIFF, REGA,
                KUL
                and their respective officers, employees, students and agents from
                and
                against any and all claims, demands, causes of action, costs, expenses
                (including without limitation costs
                of suit and reasonable attorney’s fees), losses, damages and other
                liabilities of whatsoever
                nature and howsoever arising (including without limitation, any and
                all
                such things
                arising on account of any injury or death of persons or damage to
                property) caused by,
                or arising out of, or resulting from, the exercise or practice by
                LICENSEE, its sublicensees
                and/or their respective officers, employees, agents or representatives,
                of
                the rights
                granted hereunder and/or the manufacture, sale, offer for sale, use
                and/or
                import of LICENSED
                PRODUCTS; provided, however, that the following is excluded from
                LICENSEE's
                obligation to indemnify and hold harmless:

            
	
               

            	
              the
                negligence or willful malfeasance by an officer, agent or employee
                of
                LICENSOR.

            
	
              9.2

            	
              In
                no event shall LICENSOR be liable for any:

            
	
               

            	
              (a)

            	
              loss
                of contracts, loss of goodwill, loss of opportunity, loss of profits,
                loss
                of revenue:

            
	
               

            	 	
              financial
                or economic loss of any nature; or

            
	
               

            	 	
              indirect,
                special, consequential or punitive damages arising out of, or in
                connection
                with, this AGREEMENT or its subject matter, regardless of whether
                LICENSOR
                knows or should know of the possibility of such
                loss.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              The
                total aggregate liability of
                LICENSOR for
                all
                loss
                and
                damages of
                any
                kind relating to
                this AGREEMENT or
                its
                subject matter shall not exceed the amounts paid by
                LICENSEE
                to
                LICENSOR
                under this AGREEMENT pursuant to section IV during the
                one
                (1) year period
                preceding
                the date of the first
                event
                that gave rise to
                such
                liability.

            
	 	
              The
                foregoing exclusions and limitations shall apply
                to all claims and
                actions of
                any
                kind, whether
                based on contract, tort
                (including,
                but not
                limited
                to, negligence), or any other grounds.

            
	
              9.3

            	
              Beginning
                at
                the
                time when any LICENSED SUBJECT MATTER is
                being
                distributed or
                sold
                (including for the purpose of obtaining regulatory approvals) by
                LICENSEE
                or
                by
                a
                sublicensee,
                LICENSEE shall, at its sole cost
                arid
                expense, procure and
                maintain
                commercial
                general liability insurance
                in
                amounts not less
                than
                $2,000,000 per incident and
                $2,000,000 annual aggregate, and LICENSEE shall use
                reasonable
                efforts to have the LICENSOR,
                CARDIFF, REGA, KUL and their respective officers, employees, students
                and
                agents named as
                additional
                insureds. Such commercial general liability insurance shall
                provide; (i)
                product
                liability coverage; (ii)
                broad
                form contractual liability
                coverage
                for
                LICENSEE’s indemnification under this AGREEMENT; and (iii) coverage
                for
                litigation
                costs.
                The minimum amounts of insurance coverage required herein shall not
                be
                construed
                to create a
                limit
                of
                LICENSEE'S liability with respect to its indemnification under
                this AGREEMENT.

            
	
              9.4

            	
              LICENSEE
                shall provide LICENSOR with written evidence of
                such
                insurance within
                thirty
                (30)
                days of its procurement. Additionally, LICENSEE shall provide LICENSOR
                with
                written notice of at
                least
                fifteen (15)
                days
                prior to the cancellation, non-renewal or
                material
                change in
                such
                insurance.

            
	
              9.5

            	
              LICENSEE
                shall
                maintain such commercial general liability insurance beyond the
                expiration
                or termination of
                this
                AGREEMENT during:
                (i)
                the
                period that
                any LICENSED
                PRODUCT is
                being
                commercially distributed or sold by
                LICENSEE
                or
                by
                a
                sublicensee
                or agent of LICENSEE; and (ii) the five
                (5) year
                period
                immediately
                after such
                period.

            
	
              X.    
                USE OF NAMES OF LICENSOR,
                CARDIFF,
                REGA AND KUL

            
	
              I0.1

            	
              LICENSEE
                will not use the
                name
                of (or the name of any
                employee
                of) LICENSOR or
                CARDIFF'
                or
                REGA or KUL in any advertising, promotional or sales literature,
                on
                its
                Web
                site, or for
                the
                purpose of raising capital without the advance express written
                consent
                of LICENSOR
                or
                CARDIFF or
                REGA
                (as
                the case
                may be), such consent not to
                be
                unreasonably withheld.

            
	
              XI.    
                CONFIDENTIAL
                INFORMATION AND PUBLICATION

            
	
              11.1

            	
              The
                parties
                each agree that all
                information
                contained
                in
                documents
                marked “confidential” and
                forwarded to
                one
                by
                the
                other (i)
                are
                to
                be
                received in strict confidence, (ii)
                used
                only
                for
                the purposes
                of
                this AGREEMENT.
                and (iii) not
                disclosed
                by
                the
                recipient party (except
                as
                required
                by
                law
                or court order), its agents or employees without the
                prior

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              written
                consent of the party disclosing the same, except to the extent that
                the
                recipient party
                can establish by competent written proof that such
                information:

            
	 	
              (a)

            	
              was
                in the public domain at
                the
                time
                of
                disclosure;

            
	 	
              (b)

            	
              later
                became part of the
                public
                domain through no act or omission of the
                recipient
                party,
                employees,
                agents, successors or assigns;

            
	 	
              (c)

            	
              was
                lawfully disclosed to the recipient party by a third party having
                the
                right to
                disclose
                it;

            
	
               

            	
              (d)

            	
              was
                already
                known by
                the
                recipient party at the time of disclosure:

            
	 	
              (e)

            	
              was
                independently developed by
                the
                recipient party without use of an other party’s
                confidential information; or

            
	 	
              (f)

            	
              is
                required
                by
                law
                or
                regulation
                or by the rules
                of
                any regulatory or
                supervisory
                body
                to which the recipient party is subject or with whose rules it
                is
                necessary for
                the
                recipient party to
                comply
                to be disclosed.

            
	
              11.2

            	
              Each
                party’s obligation or
                confidence
                hereunder will
                be
                fulfilled by
                using
                at
                least
                the same
                degree of
                care
                with the other party’s confidential information as it uses
                to
                protect its
                own
                confidential
                information, but always at least
                a
                reasonable degree of care.
                The
                obligation
                of
                confidence
                shall remain in force throughout the term of this AGREEMENT and
                for
                a period
                of five (5)
                years thereafter,

            
	
              11.3

            	
              Any
                party may disclose to
                the
                relevant Patent Office personnel confidential information
                of
                the
                other party, necessary for
                the
                purpose of advancing the prosecution of patents relating
                to the LICENSED SUBJECT MATTER and improvements, provided
                however,
                that
                the disclosing party will inform the non-disclosing party of the
                intention
                to disclose
                and
                the
                nature of the confidential information to be
                disclosed
                prior to
                making
                such
                disclosure
                and
                the non-disclosing party will, to
                the
                extent possible, be given an opportunity
                to
                suggest
                an alternative to
                the
                disclosure.

            
	
              11.4

            	
              Notwithstanding
                any other provision herein to
                the
                contrary, LICENSOR shall be free to disclose
                confidential information belonging to LICENSEE in confidence to
                REGA,
                KUL
                and
                CARDIFF and LICENSOR, CARDIFF, REGA and KUL shall each have the right
                to
                publish
                the general scientific findings from research related to
                LICENSED
                SUBJECT MATTER,
                with due regard to the protection of LICENSEE’S confidential information,
                LICENSOR
                and/or CARDIFF and/or REGA and/or KUL will submit the manuscript
                of
                any
                proposed publication to
                LICENSEE
                at
                least
                thirty 130) calendar days in
                advance
                of
                submission
                for publication, and LICENSEE shall have the right to
                review
                and
                comment
                upon
                the publication in order to
                protect
                LICENSEE’S confidential information. Upon LICENSEE’S
                request, publication may be delayed up
                to
                ninety (90) additional calendar days
                to enable LICENSEE to secure adequate
                intellectual
                property protection of LICENSEE’S
                confidential information that would otherwise be affected by the
                publication.

            
	
              XII.    
                ASSIGNMENT

            
	
              12.1

            	
              This
                AGREEMENT may
                be transferred or assigned by LICENSEE without the prior written
                consent of
                LICENSOR
                provided
                that
                (a) no such
                transfer
                or
                assignment
                shall be

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      	 	
              effective
                until receipt by LICENSOR, in full
                and
                in
                cleared funds,
                of all monies due to
                LICENSOR
                pursuant to Section 4.1(a)
                hereinabove
                and (b) such transferee
                or
                assignee agrees
                in writing to
                be fully
                bound by
                the
                terms and conditions of
                this AGREEMENT.

            
	
              12.2

            	
              This
                AGREEMENT may be transferred or assigned at any time by LICENSOR
                without
                the
                prior written consent of LICENSEE provided that
                such
                transferee or assignee agrees in
                writing to be fully bound by the terms and conditions of
                this AGREEMENT.

            
	
              XIII.    
                TERM AND TERMINATION

            
	
              13.1

            	
              Subject
                to Section 6.2 hereinabove and Sections 13.2, 13.3,
                13.4
                and 13.5 hereinbelow, the
                term
                of
                this
                AGREEMENT
                is from EFFECTIVE DATE to
                the
                date
                upon which
                the last
                of the
                last patent or the last continuation (whether in
                whole
                or in
                part),
                the last
                reissue,
                the
                last reexamination, the last extension to any patents or the
                last
                supplementary protection
                certificate in
                respect
                of any patents within PATENT RIGHTS expires.

            
	
              13.2

            	
              Subject
                to any rights herein which survive termination, this AGREEMENT will
                earlier terminate
                in its entirety:

            
	
               

            	
              (a)

            	
              automatically,
                if
                LICENSEE
                becomes bankrupt or
                insolvent
                and/or if
                the
                business of
                LICENSEE shall be placed in the hands of a
                receiver,
                assignee, or trustee, whether
                by
                voluntary
                act of
                LICENSEE
                or
                otherwise;

            
	 	
              (b)

            	
              upon
                ninety
                (90) calendar days
                written
                notice from LICENSOR, if
                LICENSEE
                breaches
                or
                defaults
                on the payment or
                report obligations
                of Article IV, or use of name
                obligations of
                Article
                X, unless, before the end of
                the
                such ninety (90)
                calendar
                day notice period, LICENSEE has cured the default or breach to
                LICENSOR’s
                reasonable satisfaction, and
                so
                notifies
                LICENSOR,
                stating the manner
                of the cure;

            
	 	
              (c)

            	
              upon
                thirty (30) calendar days
                written
                notice from LICENSOR,
                if
                LICENSEE
                fails
                to make the good faith
                expenditures detailed
                in Section 4.2
                within
                the prescribed
                time period;

            
	 	
              (d)

            	
              upon
                ninety (90) calendar days written
                notice
                from LICENSOR if
                LICENSEE
                breaches
                or defaults on any other obligation under this AGREEMENT, unless,
                before
                the end of the such ninety (90) calendar-day notice
                period, LICENSEE has cured
                the default or breach to LICENSOR’s reasonable satisfaction and so
                notifies
                LICENSOR, stating the manner of the cure:

            
	 	
              (e)

            	
              at
                any
                time by
                mutual
                written agreement between LICENSEE and LICENSOR subject
                to
                any
                terms herein which
                survive
                termination;

            
	 	
              (f)

            	
              at
                LICENSOR’s
                option if
                LICENSEE
                has defaulted or
                been
                in excess of
                one
                (1)
                month
                late on its
                payment
                obligations
                pursuant
                to the terms of this AGREEMENT on
                any two (2) occasions
                in
                a
                twelve
                (12)
                month
                period, provided however, that
                LICENSEE
                shall have fourteen (14) days from receiving written notice from
                LICENSOR
                of
                the
                second default or late payment to
                cure
                the default or late payment
                to the reasonable satisfaction of LICENSOR, and so
                notifies
                LICENSOR,
                stating
                the manner
                of cure;

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (g)

            	
              upon
                one hundred
                twenty (120)
                calendar
                days written
                notice
                from LICENSEE if
                any particular patent or
                patents
                included in PATENT RIGHTS and which
                account
                for
                at least
                thirty (30%) percent of the total royalty to LICENSOR pursuant to
Article
                4.1(b), is or are irrevocably adjudicated to be invalid;
                or

            
	 	
              (h)

            	
              upon
                ninety (90) calendar days written notice from LICENSEE if LICENSOR
                is
                in
                breach of
                Section
                11.1 (Confidential Information and Publication) unless, before
                the end of the such ninety (90) calendar-day notice period, LICENSOR
                has
                cured
                the default or breach to LICENSEE’s reasonable satisfaction and so
                notifies LICENSEE, stating the manner of the cure.

            
	13.3	
              (a)
                

            	
              Upon
                one hundred twenty (120) calendar days
                written notice from LICENSEE, LICENSEE
                may terminate its
                obligations
                to make payments under this
                AGREEMENT
                solely with respect to a
                particular
                patent or
                patents
                included in PATENT
                RIGHTS, provided such particular patent or
                patents
                is or
                are
                irrevocably
                adjudicated to be invalid; such termination of payments shall only
                apply
                in
                respect of SALES in the territory for which such particular patent
                or
                patents
                are invalidated and the definition of
                PATENT
                RIGHTS shall be deemed to
                have been amended by the deletion therefrom of such patent or patents
                and
                subject
                to such amendment this AGREEMENT shall continue in
                force.

            
	 	
              (b) 

            	
              LICENSOR
                may terminate this AGREEMENT in respect of any patent or
                patent
                application
                comprised within PATENT RIGHTS at any time in accordance with the
                provisions of Section 6.2 hereinabove and, where LICENSOR does
                so,
                the definition
                of PATENT RIGHTS shall be deemed to have been amended by the deletion
                therefrom of such patent or patent application and subject to
                such
                amendment
                this AGREEMENT shall continue in force.

            
	
              13.4

            	
              Upon
                termination
                of
                this AGREEMENT:

            
	 	
              (a)

            	
              nothing
                herein will be construed to release any party of any obligation maturing
                prior to the effective date of the termination:

            
	 	
              (b)

            	
              LICENSEE
                covenants and agrees to
                be
                bound by the provisions of
                Articles
                IV (Consideration,
                Payments and Reports), IX (Indemnification and Insurance), X
                (Use
                of LICENSOR’s Name), and
                XI
                (Confidential Information and Publication) of
                this AGREEMENT;

            
	 	
              (c)

            	
              LICENSOR
                agrees to
                be
                bound by Article
                XI;

            
	 	
              (d)

            	
              To
                the
                extent that termination is caused other than by breach of LICENSEE,
                LICENSEE may, after the effective date of the termination, sell all
                LICENSED PRODUCTS and parts therefor that
                it has
                on hand at the date of termination, provided LICENSEE pays the earned
                royalty thereon and any other amounts due pursuant
                to Article IV of this AGREEMENT.

            
	 	
              (e)

            	
              Subject
                to Section 13.3(d), LICENSEE agrees to cease and desist any use
                and
                all SALE
                of the LICENSED SUBJECT MATTER and LICENSED PRODUCTS upon
                termination of this AGREEMENT and to provide to
                LICENSOR
                within ninety (90) days of the date of termination a written statement
                showing all monies due to but not paid to LICENSOR under Section
                4
                hereinabove
                in
                respect
                of the period up to and including the
                date
                of termination and LICENSEE AGREES
                to

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	
              pay
                to
                LICENSOR
                all
                such
                monies at the same time as
                it
                delivers
                such statement to
                LICENSOR;
                and

            
	 	
              (f)

            	
              LICENSEE
                grants
                to
                LICENSOR,
                CARDIFF, REGA and KUL a nonexclusive royalty bearing license with
                the
                right to sublicense others with respect to
                improvements
                made by LICENSEE (including improvements licensed by LICENSEE
                from third parties) but
                excluding
                any
                improvements
                assigned to
                LICENSOR
                hereunder. LICENSEE and LICENSOR and CARDIFF and
                REGA
                and KUL
                agree
                to
                negotiate
                in good
                faith
                the
                royalty
                rate
                for the nonexclusive license.

            
	 	
              (g) 

            	
              To
                the extent that
                termination
                is
                caused
                other than by
                breach
                of
                LICENSEE,
                LICENSEE
                shall
                provide
                LICENSOR with a final statement of NET SALES within
                six (6) months following termination, and shall pay any royalties
                due
                no more
                than thirty (30)
                calendar
                days
                thereafter,

            
	
              13.5

            	
              Upon
                expiry of this AGREEMENT, LICENSEE shall,
                for
                a
                period
                of
                five (5)
                years
                alter the
                first (lst)
                commercial
                SALE of such LICENSED PRODUCT (or such part of
                such
                period
                as
                extends
                beyond
                the expiry date
                of this
                AGREEMENT), continue to pay royalties,
                milestone payments and
                other sums
                in respect of
                such
                LICENSED PRODUCT in
                accordance
                with sections
                4.1(b), (c)
                and (d)
                hereinabove
                UNLESS LICENSEE can reasonably
                demonstrate that such LICENSED PRODUCT does not use
                or
                incorporate TECHNOLOGY RIGHTS of a
                confidential
                nature and in
                assessing
                whether or not such TECHNOLOGY
                RIGHTS are
                of
                a
                confidential
                nature any such TECHNOLOGY RIGHTS
                that are in the public domain as
                a
                result
                of
                any
                act or omission by
                LICENSEE
                (other
                than the inclusion of or reference to
                such
                TECHNOLOGY RIGHTS in a published application
                for
                a patent or issued patent) shall be
                deemed
                to be
                of a
                confidential
                nature; and
                LICENSEE shall comply with
                the provisions of sections
                4.3, 4.4, 4.5. 4.6, 4.7 and
                4.9
                during
                such period.

            
	
              XIV.    
                WARRANTY: SUPERIOR-RIGHTS

            
	
              14.1

            	
              LICENSOR
                represents and
                warrants
                that at EFFECTIVE DATE (a)
                it and
                REGA are jointly
                the owners of
                the
                entire
                right,
                title,
                and
                interest in
                and to
                PATENT RIGHTS and TECHNOLOGY
                RIGHTS, (b)
                it
                has the sole right to
                grant
                sublicenses thereunder, (c)
                it
                has
                not
                granted sublicenses thereunder to
                any
                other entity that would restrict rights
                granted
                hereunder except as stated
                herein;
                (d)
                it
                is
                not
                aware
                (not
                having made any enquiries
                or carried
                out
                any searches) of
                any
                belief that any patent comprised within PATENT
                RIGHTS is
                not
                valid or
                of
                any patent
                owned by
                LICENSOR
                and
                not
                included in
                PATENT
                RIGHTS which
                would
                be infringed by
                LICENSEE’s
                use of PATENT RIGHTS
                in
                accordance
                with the
                terms
                of
                this
                AGREEMENT.

            
	
              14.2

            	
              LICENSEE
                understands and agrees
                that
                LICENSOR, by
                this AGREEMENT,
                makes no
                representation
                as
                to the
                quality, operability or
                fitness
                for
                any
                use, safety, efficacy, approvability
                by
                regulatory
                authorities, time
                and cost of
                development, patentability, and/or
                breadth of LICENSED SUBJECT MATTER, PATENT RIGHTS or
                TECHNOLOGY
                RIGHTS, LICENSOR, by this AGREEMENT, also save as set out
                in
                section
                14.1 hereinabove makes no representation as to
                whether
                any patent covered by
                PATENT
                RIGHTS is
                valid
                or as
                to
                whether
                there are any patents now held, or which
                will

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              be
                held,
                by others or by LICENSOR in the. LICENSED FIELD nor does LICENSOR
                make
                any representation that the inventions contained in PATENT RIGHTS
                and/or
                LICENSED
                SUBJECT MATTER do not
                infringe
                any
                other patents
                now held or
                that
                will be
                held
                by
                others.

            
	
              14.3

            	
              LICENSEE,
                by execution hereof, acknowledges, covenants and agrees
                that LICENSEE
                has
                not
                been
                induced in any way
                by
                LICENSOR or employees thereof to
                enter
                into this AGREEMENT,
                and further
                warrants
                and represents
                that (a)
                LICENSEE has had
                the
                opportunity
                to
                conduct sufficient
                due diligence
                with
                respect to all
                items and
                issues pertaining
                to
                this AGREEMENT; and
                (b) LICENSEE
                possesses adequate knowledge
                and expertise,
                or
                has had
                the
                opportunity to
                use knowledgeable
                and
                expert
                consultants,
                to adequately
                conduct
                such due
                diligence,
                and subject to the representations and warranties provided
                by
                LICENSOR
                in section 14.1, agrees
                to
                accept all
                risks inherent herein; (c)
                LICENSEE
                is
                a corporation
                duly
                incorporated and
                validly
                existing under the laws
                of the
                state
                of
                Delaware, United
                States
                of America, with
                all
                corporate power and
                authority to enter
                into
                this
                Agreement
                and
                to perform
                its obligations
                hereunder
                including
                payment of
                all
                sums due
                to the
                Licensor hereunder;
                (d)
                the
                execution of this
                AGREEMENT
                by
                LICENSEE
                has
                been
                duly authorised
                by all requisite action on the
                part of LICENSEE
                and
                constitutes a valid, binding and
                enforceable
                obligation of
                LICENSEE;
                and
                (e) LICENSEE
                is not a party to
                any
                agreement (express
                or implied
                that
                may conflict
                with its
                obligations
                hereunder.

            
	
              XV.    
                PARENT COMPANY GUARANTEE

            
	
              15. 

            	
              As
                material
                inducement for LICENSOR to enter into
                and
                perform this AGREEMENT, LICENSEE has procured a
                guarantor
                acceptable
                to
                LICENSOR, who has
                entered
                into a guarantee
                agreement
                in
                the
                form
                set out
                in
                Exhibit
                II

            
	
              XVI.    
                GENERAL

            
	
              16.1

            	
              This
                AGREEMENT
                constitutes the entire and only
                agreement
                between the PARTIES for
                LICENSED
                SUBJECT MATTER and all other prior negotiations,
                representations,
                agreements
                and understandings are superseded hereby. No
                agreements altering or
                supplementing
                the terms
                hereof will be
                made except by a written document
                signed by both
                PARTIES.

            
	
              16.2

            	
              Any
                notice
                required by this
                AGREEMENT
                shall be in
                writing and
                served
                personally or sent
                by registered
                or certified mail
                (postage
                prepaid) or
                by
                overnight
                courier
                service or
                by facsimile
                (and confirmed
                by airmail, postage prepaid) and
                addressed to the
                relevant
                party as
                follows:

            
	 	
              If
                to LICENSOR to:

            
	 	
              University
                College
                Cardiff
                Consultants
                Limited

              
                30-36
                  Newport
                  Road

                
                  Cardiff
                    CF24 0DE,
                    UK
ATTENTION: Dr. Nick
                  Bourne

              

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      	
            	
              Fax:
                +44 29 20 87 41 89 

            
	 	
              If
                to LICENSEE to:

            
	 	
              ContraVir
                Research Incorporated

              
                595
                  Stewart Avenue

                
                  Garden
                    City

                  
                    New
                      York 11530

                    
                      ATTENTION:
                        Donald H. Picker, President 

                      
                        Fax:
                          +1 212 297 0010

                      

                    

                  

                

              

            
	 	
              or
                to such other addresses or facsimile number as may be given from
                time to
                time under the terms of this notice provision. Any notice served
                personally shall be deemed to have been
                given upon such service. Any notice sent by mail shall be deemed
                to have
                been served
                five (5) days after the same shall have been posted and any notice
                sent by
                facsimile
                shall be deemed to have been served upon transmission and in providing
                such service it shall be sufficient to prove that the letter or facsimile
                was properly addressed and
                as the case may be posted or transmitted.

            
	
              16.3

            	
              LICENSEE
                agrees to comply with all applicable federal, state and local laws
                and
                regulations
                in connection with its activities pursuant to this
                AGREEMENT.

            
	
              16.4

            	
              This
                Agreement shall be governed by and construed in all respects in accordance
                with the laws
                of England and Wales and the PARTIES hereby exclusively submit to
                the
                jurisdiction
                of the courts of England and Wales,

            
	
              16.5

            	
              Failure
                of LICENSOR to enforce a right under this AGREEMENT will not act
                as a
                waiver
                of right or the ability to later assert that right relative to the
                particular situation involved,

            
	
              I6.6

            	
              Headings
                included herein are for convenience only and will not be used to
                construe
                this AGREEMENT.

            
	
              16.7

            	
              If
                any part of this AGREEMENT is for any reason found to be unenforceable,
                all other parts
                nevertheless will remain enforceable,

            
	
              16.8

            	
              Save
                in respect of CARDIFF, REGA and KUL who shall each be entitled to
                enforce
                the provisions
                of Sections 15, 5.1, 9.1. 9.3, 10.1, 11.4 and 13.4(f) neither party
                intends that any
                provision of this AGREEMENT shall be enforceable by any person, firm,
                company or organisation who is not a party to this Agreement whether
                pursuant to the Contracts (Rights
                of Third Parties) Act 1999 or
                otherwise.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties have caused their duly authorized representatives
      to execute
      this AGREEMENT.

    

      SIGNED
        by

       

      
        	N. B. BOURNE	/s/ N. B. Bourne
	Director	
                

              

      

       

      duly
        authorised representative

      for
        and
        on behalf of UNIVERSITY

      COLLEGE
        CARDIFF CONSULTANTS

      LIMITED

    

     

     

    SIGNED
      by

     

    
      
        
          	DONALD H. PICKER	/s/ Donald H. Picker
	Director	
                  

                

        

      

    

     

    duly
      authorised representative

    for
      and
      on
      behalf
      of

    CONTRAVIR
      RESEARCH

    INCORPORATED

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