Document:

Exhibit 10.1

 

LEASE

 

between

 

1114
6TH AVENUE CO. LLC,

 

Landlord

 

and

 

ADVENT
SOFTWARE, INC.,

 

Tenant

 

September 30, 2009

 

PREMISES:

 

1114
Avenue of the Americas

New York, New York

Entire 33rd Floor

 

 

Table of Contents

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1

  	
  Term and Fixed Rent

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
  Delivery and Use of Premises

  	
  4

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
  Escalations

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
  Security

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
  Subordination, Notice to Superior Lessors and Mortgagees

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
  Quiet Enjoyment

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
  Assignment, Subletting and Mortgaging

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
  Compliance with Laws

  	
  31

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
  Insurance

  	
  33

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
  Rules and Regulations

  	
  35

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11

  	
  Alterations

  	
  36

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12

  	
  Landlord’s and Tenant’s Property

  	
  39

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13

  	
  Repairs and Maintenance

  	
  40

  
	
   

  	
   

  	
   

  
	
  ARTICLE 14

  	
  Electricity

  	
  42

  
	
   

  	
   

  	
   

  
	
  ARTICLE 15

  	
  Landlord’s Services

  	
  46

  
	
   

  	
   

  	
   

  
	
  ARTICLE 16

  	
  Access and Name of Building; Signage

  	
  51

  
	
   

  	
   

  	
   

  
	
  ARTICLE 17

  	
  Notice of Occurrences

  	
  54

  
	
   

  	
   

  	
   

  
	
  ARTICLE 18

  	
  Non-Liability and Indemnification

  	
  54

  
	
   

  	
   

  	
   

  
	
  ARTICLE 19

  	
  Damage or Destruction

  	
  55

  
	
   

  	
   

  	
   

  
	
  ARTICLE 20

  	
  Eminent Domain

  	
  59

  
	
   

  	
   

  	
   

  
	
  ARTICLE 21

  	
  Surrender

  	
  60

  
	
   

  	
   

  	
   

  
	
  ARTICLE 22

  	
  Conditions of Limitation

  	
  61

  
	
   

  	
   

  	
   

  
	
  ARTICLE 23

  	
  Reentry by Landlord

  	
  64

  
	
   

  	
   

  	
   

  
	
  ARTICLE 24

  	
  Damages

  	
  65

  

 

i

 

Table of Contents

 

	
   

  	
   

  	
  Page

  
	
  ARTICLE 25

  	
  Affirmative Waivers

  	
  67

  
	
   

  	
   

  	
   

  
	
  ARTICLE 26

  	
  No Waivers

  	
  67

  
	
   

  	
   

  	
   

  
	
  ARTICLE 27

  	
  Curing Tenant’s Defaults

  	
  68

  
	
   

  	
   

  	
   

  
	
  ARTICLE 28

  	
  Broker

  	
  68

  
	
   

  	
   

  	
   

  
	
  ARTICLE 29

  	
  Notices

  	
  69

  
	
   

  	
   

  	
   

  
	
  ARTICLE 30

  	
  Estoppel Certificates

  	
  70

  
	
   

  	
   

  	
   

  
	
  ARTICLE 31

  	
  Memorandum of Lease

  	
  71

  
	
   

  	
   

  	
   

  
	
  ARTICLE 32

  	
  No Representations by Landlord

  	
  71

  
	
   

  	
   

  	
   

  
	
  ARTICLE 33

  	
  Intentionally Omitted

  	
  71

  
	
   

  	
   

  	
   

  
	
  ARTICLE 34

  	
  Holdover

  	
  71

  
	
   

  	
   

  	
   

  
	
  ARTICLE 35

  	
  Miscellaneous Provisions and Definitions

  	
  72

  
	
   

  	
   

  	
   

  
	
  ARTICLE 36

  	
  Renewal Option

  	
  79

  
	
   

  	
   

  	
   

  
	
  ARTICLE 37

  	
  Offer Space Option

  	
  81

  
	
   

  	
   

  	
   

  
	
  ARTICLE 38

  	
  Landlord’s Work Allowance

  	
  84

  
	
   

  	
   

  	
   

  
	
  ARTICLE 39

  	
  Cancellation Option

  	
  86

  
	
   

  	
   

  	
   

  
	
  ARTICLE 40

  	
  Roof Installations

  	
  87

  

 

ii

 

	
  EXHIBITS

  	
   

  
	
  EXHIBIT – A

  	
  Description of Land

  
	
  EXHIBIT – B

  	
  Floor Plan

  
	
  EXHIBIT – C

  	
  Landlord’s Work

  
	
  EXHIBIT – C-1

  	
  Demolition Plan

  
	
  EXHIBIT – D

  	
  Form of Letter of
  Credit

  
	
  EXHIBIT – E

  	
  Rules and Regulations

  
	
  EXHIBIT – F

  	
  Alteration Rules and
  Regulations

  
	
  EXHIBIT – G

  	
  Cleaning Specifications

  
	
  EXHIBIT – H

  	
  HVAC Specifications

  
	
  EXHIBIT – I

  	
  Floor Plans of Offer Space

  
	
  EXHIBIT – J

  	
  Form of
  Non-Disturbance Agreement

  

 

 

Index
of Defined Terms

 

	
  Definition

  	
   

  	
  Section

  
	
   

  	
   

  	
   

  
	
  AAA

  	
   

  	
  3.03(e)(ii)

  
	
  Acceptance Notice

  	
   

  	
  37.01(c)

  
	
  Actual Charge

  	
   

  	
  14.04(a)

  
	
  Additional Charges

  	
   

  	
  1.04(b)

  
	
  Affected Occupant

  	
   

  	
  16.02(c)

  
	
  Alterations

  	
   

  	
  11.01

  
	
  Anticipated Inclusion Date

  	
   

  	
  37.01(b)

  
	
  Arbiter

  	
   

  	
  3.03(e)(ii)

  
	
  Assignment Profit

  	
   

  	
  7.14(b)

  
	
  Available

  	
   

  	
  37.01(a)

  
	
  Bankruptcy Event

  	
   

  	
  22.01

  
	
  Baseball Arbitrators

  	
   

  	
  36.01(d)(i)

  
	
  Base Operating Amount

  	
   

  	
  3.01(a)

  
	
  Base Operating Year

  	
   

  	
  3.01(b)

  
	
  Base Rate

  	
   

  	
  35.05(i)

  
	
  Base Tax Amount

  	
   

  	
  3.01(c)

  
	
  Broker

  	
   

  	
  28.01

  
	
  Building

  	
   

  	
  1.01

  
	
  Business Days

  	
   

  	
  15.01(b)

  
	
  Business Hours

  	
   

  	
  15.01(b)

  
	
  Cancellation Date

  	
   

  	
  39.01

  
	
  Certified Public
  Accountant

  	
   

  	
  3.03(e)(i)

  
	
  Commencement Date

  	
   

  	
  1.05

  
	
  Commencement Date Notice

  	
   

  	
  1.05

  
	
  Condenser Water Rate

  	
   

  	
  15.09(a)

  
	
  Date of the Taking

  	
   

  	
  20.01

  
	
  Decorative Work

  	
   

  	
  11.01

  
	
  Embargoed Person

  	
   

  	
  35.18

  
	
  Escrow Agent

  	
   

  	
  19.01(a)

  
	
  Event of Default

  	
   

  	
  22.02

  
	
  Expiration Date

  	
   

  	
  1.03

  
	
  Fair Market Rent

  	
   

  	
  36.01(b)

  
	
  Fair Offer Rental

  	
   

  	
  37.01(c)

  
	
  Fixed Rent

  	
   

  	
  1.04(a)

  
	
  Force Majeure Causes

  	
   

  	
  35.04(a)

  
	
  GAAP

  	
   

  	
  3.01(e)(B)

  
	
  Hazardous Materials

  	
   

  	
  8.04

  
	
  Holder of a Mortgage

  	
   

  	
  35.05(a)

  
	
  HVAC

  	
   

  	
  3.01(g)

  
	
  Initial Charge

  	
   

  	
  14.04(a)

  

 

iv

 

	
  Installations

  	
   

  	
  40.01(a)

  
	
  Insurance Requirements

  	
   

  	
  35.05(b)

  
	
  Interest Rate

  	
   

  	
  35.05(i)

  
	
  Issuing Bank

  	
   

  	
  4.01

  
	
  Issuing Bank Criteria

  	
   

  	
  4.01

  
	
  Land

  	
   

  	
  1.01

  
	
  Landlord

  	
  Introductory Paragraph,

  	
   

  	
  35.05(d)

  
	
  Landlord’s Contribution

  	
   

  	
  38.01(a)

  
	
  Landlord’s Determination

  	
   

  	
  36.01(c)

  
	
  Landlord’s Offer
  Determination

  	
   

  	
  37.01(c)

  
	
  Landlord’s Rate

  	
   

  	
  14.02

  
	
  Landlord’s Restoration
  Work

  	
   

  	
  19.01(a)(i)

  
	
  Landlord’s Statement

  	
   

  	
  3.01(d)

  
	
  Landlord’s Work

  	
   

  	
  1.05

  
	
  Legal Requirements

  	
   

  	
  35.05(j)

  
	
  Lender

  	
   

  	
  5.04(a)

  
	
  Letter of Credit

  	
   

  	
  4.01

  
	
  Life Safety Capital
  Expenditures

  	
   

  	
  3.01(e)(A)(x)

  
	
  LLC

  	
   

  	
  7.02(A)

  
	
  Material Alteration

  	
   

  	
  11.01

  
	
  Mortgage

  	
   

  	
  35.05(a)

  
	
  Mortgage Non-Disturbance
  Agreement

  	
   

  	
  5.04(a)

  
	
  Mortgagee

  	
   

  	
  35.05(a)

  
	
  Non-Disturbance Agreement

  	
   

  	
  5.04(a)

  
	
  Non-Renewal Notice

  	
   

  	
  4.01(viii)

  
	
  notices

  	
   

  	
  29.01

  
	
  Occupied Premises

  	
   

  	
  16.02(c)

  
	
  Offer Notice

  	
   

  	
  37.01(b)

  
	
  Offer Rent Notice

  	
   

  	
  37.01(c)

  
	
  Offer Space

  	
   

  	
  37.01(a)

  
	
  Offer Space Inclusion Date

  	
   

  	
  37.01(d)

  
	
  Offer Space Option

  	
   

  	
  37.01(c)

  
	
  Offer Space Outside Date

  	
   

  	
  37.01(f)

  
	
  Operating Expenses

  	
   

  	
  3.01(e)(A)

  
	
  Operating Payment

  	
   

  	
  3.03(a)

  
	
  Operating Year

  	
   

  	
  3.01(f)

  
	
  Outside Delivery Date

  	
   

  	
  2.01(b)(ii)

  
	
  Partnership Tenant

  	
   

  	
  7.16

  
	
  Permitted Occupants

  	
   

  	
  7.17

  
	
  Permitted Use

  	
   

  	
  2.02

  
	
  person

  	
   

  	
  35.05(g)

  
	
  Premises

  	
   

  	
  1.02

  
	
  Real Property

  	
   

  	
  3.01(g)

  
	
  Records

  	
   

  	
  3.03(e)(i)

  
	
  Renewal Notice

  	
   

  	
  36.01(a)

  
	
  Renewal Term

  	
   

  	
  36.01(a)

  
				

 

v

 

	
  Rent Commencement Date

  	
   

  	
  1.05

  
	
  Rent Notice

  	
   

  	
  36.01(c)

  
	
  Rules and Regulations

  	
   

  	
  10.01

  
	
  Security Deposit

  	
   

  	
  4.01(iv)

  
	
  Service Provider

  	
   

  	
  15.10

  
	
  Specified Restoration Work

  	
   

  	
  19.01(b)

  
	
  Sublease Profit

  	
   

  	
  7.14(c)

  
	
  Successor Landlord

  	
   

  	
  5.03

  
	
  Superior Lease

  	
   

  	
  5.01

  
	
  Superior Lessor

  	
   

  	
  5.01

  
	
  Superior Mortgage

  	
   

  	
  5.01

  
	
  Superior Mortgagee

  	
   

  	
  5.01

  
	
  Target Date

  	
   

  	
  2.01(b)(ii)

  
	
  Tax Payment

  	
   

  	
  3.02(a)

  
	
  Tax Year

  	
   

  	
  3.01(i)

  
	
  Taxes

  	
   

  	
  3.01(h)

  
	
  Tenant

  	
  Introductory Paragraph, 

  	
   

  	
  35.05(c)

  
	
  Tenant Affiliate

  	
   

  	
  7.02(B)

  
	
  Tenant Successor

  	
   

  	
  7.02(B)

  
	
  Tenant’s Costs

  	
   

  	
  7.14(d)

  
	
  Tenant’s Determination

  	
   

  	
  36.01(c)

  
	
  Tenant’s Notice

  	
   

  	
  36.01(c)

  
	
  Tenant’s Minimum Offer
  Determination

  	
   

  	
  37.01(c)

  
	
  Tenant’s Notice of
  Cancellation

  	
   

  	
  39.01(i)

  
	
  Tenant’s Operating Share

  	
   

  	
  3.01(j)

  
	
  Tenant’s Options

  	
   

  	
  35.17

  
	
  Tenant’s Plans

  	
   

  	
  11.02(a)

  
	
  Tenant’s Property

  	
   

  	
  12.02

  
	
  Tenant’s Property Removal
  Obligation

  	
   

  	
  19.01(b)

  
	
  Tenant’s Rent Notice

  	
   

  	
  37.01(c)

  
	
  Tenant’s Restoration Work

  	
   

  	
  19.01(a)(ii)

  
	
  Tenant’s Statement

  	
   

  	
  3.02(e)(ii)

  
	
  Tenant’s Tax Share

  	
   

  	
  3.01(k)

  
	
  Tenant’s Work

  	
   

  	
  38.01(a)

  
	
  Termination Notice

  	
   

  	
  2.01(b)(ii)

  
	
  Work Notice

  	
   

  	
  2.01(b)(ii)

  
				

 

vi

 

LEASE, dated as of
September 30, 2009, between 1114 6TH AVENUE CO. LLC, a Delaware limited liability
company, having an office at c/o Brookfield Properties Management LLC, Three
World Financial Center, 200 Vesey Street, New York, New York 10281-1021 (“Landlord”)
and ADVENT SOFTWARE, INC., a
Delaware corporation, having an office at 600 Townsend Street, San Francisco,
California 94103 (“Tenant”). 
Landlord and Tenant do hereby covenant and agree as follows:

 

ARTICLE 1

 

Term and Fixed Rent

 

1.01                           Landlord hereby leases to Tenant, and
Tenant hereby hires from Landlord, upon and subject to the terms, covenants,
provisions and conditions of this Lease, the premises described in Section 1.02
in the building (“Building”) known as 1114 Avenue of the Americas, in
the City, County and State of New York. 
The Building is located on a portion of the land (“Land”)
described in Exhibit A
annexed hereto and made a part hereof.

 

1.02                           The premises (“Premises”) leased to
Tenant are the entire 33rd floor of the Building, substantially as shown hatched
on the floor plan attached hereto as Exhibit B
and made a part hereof.  Landlord and
Tenant hereby covenant and agree that the Premises shall be deemed to contain
31,286 rentable square feet.  Landlord
hereby grants to Tenant the non-exclusive right to use, in common with others,
the public areas of the Building to the extent required for access to the
Premises or use of the Premises for general, administrative and executive offices,
including, without limitation, common hallways on the floor on which the
Premises are located, stairways, restrooms on the floor on which the Premises
are located, and the Building lobby, subject to the terms, covenants,
provisions and conditions of this Lease.

 

1.03                           The term of this Lease (a) shall
commence on the Commencement Date (as defined in Section 1.05
hereof) and (b) shall end at 11:59 p.m. on the last day of the month
in which occurs the day immediately preceding the 15th anniversary of the Rent Commencement Date (as
defined in Section 1.05 hereof) (the “Expiration Date”), or
on such earlier date upon which the term of this Lease shall expire or be
canceled or terminated pursuant to any of the conditions or covenants of this
Lease or pursuant to law.

 

1.04                           The rents shall be and consist of:

 

(a)                                  fixed rent (“Fixed Rent”) at the
rate of:

 

(i)                                     Two Million Two Thousand Three Hundred
Four and 00/100  ($2,002,304)
Dollars per annum ($166,858.67 per month) from the Commencement Date through
and including the day immediately preceding the tenth (10th) anniversary of the Rent Commencement Date; and

 

(ii)                                  Two Million One Hundred Fifty Eight
Thousand Seven Hundred Thirty Four and 00/100
($2,158,734) Dollars per annum ($179,894.50 per month) from the tenth
(10th) anniversary of the Rent Commencement
Date through and including the Expiration Date.

 

1

 

Fixed Rent shall be
payable in equal monthly installments in advance on the first day of each and
every calendar month during the term from and after the Rent Commencement Date,
and

 

(b)                                 additional rent (“Additional Charges”)
consisting of Tax Payments (hereinafter defined), Operating Payments
(hereinafter defined), charges for electricity furnished to Tenant and all
other sums of money as shall become due from and payable by Tenant to Landlord
hereunder;

 

(c)                                  Notwithstanding anything to the contrary
contained herein, provided that Tenant is not then in monetary default
hereunder beyond applicable notice and cure periods, Tenant shall not be
obligated to pay Fixed Rent or make any Tax Payments by reason of any increase
in Taxes over the Base Tax Amount for the period from the Commencement Date
through the day immediately preceding the Rent Commencement Date.  Tenant shall continue to pay all Additional
Charges (except as otherwise set forth in the preceding sentence), applicable
for each of the forgoing months;

 

all to be paid in lawful
money of the United States to Landlord at its office, or such other place, or
to Landlord’s agent and at such other place, as Landlord shall designate by
notice to Tenant.

 

1.05                           The “Commencement Date” shall be
the date which is the earlier to occur of: 
(i) the date on which Landlord tenders delivery of the Premises to
Tenant with the work to be performed by Landlord to prepare the Premises for
Tenant’s occupancy as described on Exhibit C
attached hereto (“Landlord’s Work”) substantially completed, or (ii) the
date Tenant or anyone claiming under or through Tenant, first occupies the
Premises, or any part thereof, for the performance of Tenant’s Work, if any, or
for any other purpose.  Landlord shall
fix the Commencement Date and shall give Tenant written notice (the “Commencement
Date Notice”) of the date so fixed. 
Tenant shall conclusively be deemed to have agreed with Landlord’s
determination of the Commencement Date as set forth in the Commencement Date
Notice unless within ten (10) Business Days (as hereinafter defined) after
the giving of the Commencement Date Notice, Tenant shall deliver a notice to
Landlord specifying with reasonable detail the reasons why Tenant asserts that
the occurrence of the Commencement Date has not occurred.  Pending the resolution of such dispute, the
parties shall operate based upon Landlord’s determination that the Commencement
Date has occurred, without prejudice to Tenant’s position.  If it is resolved that the Commencement Date
was not the date so fixed by Landlord, any payments of rent paid by Tenant to
Landlord for periods prior to the proper Commencement Date or Rent Commencement
Date, as applicable, shall be credited by Landlord against amounts first due
under this Lease.  Tenant shall, upon the
demand of Landlord, execute, acknowledge and deliver to Landlord an instrument
in form reasonably satisfactory to Landlord confirming the Commencement Date,
the Rent Commencement Date and the Expiration Date of this Lease; provided, however, that Tenant’s failure
to execute, acknowledge and deliver such instrument shall not affect in any
manner whatsoever the validity of the Commencement Date.  The “Rent Commencement Date” shall be July 1,
2010, subject to adjustment pursuant to Section 2.01(b) below.

 

1.06                           Tenant covenants and agrees to pay Fixed
Rent and Additional Charges promptly when due without notice or demand therefor
and without any abatement, deduction or setoff for any reason whatsoever,
except as may be expressly provided in this Lease.  Fixed Rent 

 

2

 

and Additional Charges shall be paid by good and sufficient check
(subject to collection) or, at Tenant’s option, by wire transfer or other
Electronic Funds Transfer pursuant to instructions delivered by Landlord to
Tenant upon Tenant’s request.

 

1.07                           If the Commencement Date, Rent
Commencement Date or the Expiration Date occurs on a day other than the first
day of a calendar month (in the case of the Commencement Date or Rent
Commencement Date) or the last day of a calendar month (in the case of the
Expiration Date), the Fixed Rent and Additional Charges for the partial
calendar month in which the Commencement Date or Rent Commencement Date, or the
Expiration Date, as applicable, occurs shall be prorated.  The Fixed Rent for any partial calendar month
in which the Rent Commencement Date occurs shall be paid on the Rent
Commencement Date.

 

1.08                           No payment by Tenant or receipt or
acceptance by Landlord of a lesser amount than the correct Fixed Rent or
Additional Charges shall be deemed to be other than a payment on account, nor
shall any endorsement or statement on any check or any letter accompanying any
check or payment be deemed an accord and satisfaction, and Landlord may accept
such check or payment without prejudice to Landlord’s right to recover the
balance or pursue any other remedy in this Lease or at law provided.

 

1.09                           Any apportionments or prorations of Fixed
Rent or Additional Charges to be made under this Lease shall be computed on the
basis of a 360-day year (based on twelve (12) months of thirty (30) days each).

 

1.10                           If any of the Fixed Rent or Additional
Charges payable under the terms and provisions of this Lease shall be or become
uncollectible, reduced or required to be refunded because of any act or law
enacted by a governmental authority, Tenant shall enter into such agreement(s) and
take such other steps (without additional expense to Tenant) as Landlord may
reasonably request and as may be legally permissible to permit Landlord to
collect the maximum rents which from time to time during the continuance of
such legal rent restriction may be legally permissible (but not in excess of
the amounts reserved therefor under this Lease).  Upon the termination of such legal rent
restriction, (a) the Fixed Rent and/or Additional Charges shall become and
thereafter be payable in accordance with the amounts reserved herein for the
periods following such termination, and (b) Tenant shall pay to Landlord
promptly upon being billed, to the maximum extent legally permissible, an
amount equal to (i) the Fixed Rent and/or Additional Charges which would
have been paid pursuant to this Lease but for such legal rent restriction less (ii) the
rents paid by Tenant during the period such legal rent restriction was in
effect.

 

1.11                           Additional Charges shall be deemed to be
rent and Tenant’s failure to pay Additional Charges shall be considered a
failure to pay Fixed Rent hereunder and Landlord shall be entitled to all
rights and remedies provided herein or by law for a default in the payment of
Additional Charges as for a default in the payment of Fixed Rent
(notwithstanding the fact that Tenant may not then also be in default in the
payment of Fixed Rent).

 

1.12                           Upon the Rent Commencement Date, and upon
each of the first, second, third and fourth anniversaries of the Rent
Commencement Date, Tenant shall receive a credit in the amount of $156,430.00
to be applied, in each case, against the next installment of Fixed Rent then
due hereunder.

 

3

 

ARTICLE 2

 

Delivery and Use of
Premises

 

2.01                       (a)                                      Except as expressly provided to the contrary in this Section 2.01(a),
Tenant shall accept the Premises “as is” on the Commencement Date and Landlord
shall not thereafter be required to perform any work, install any fixtures or
equipment or render any services to make the Building or the Premises ready or
suitable for Tenant’s use or occupancy. 
Landlord shall perform Landlord’s Work in a good and workmanlike manner,
in compliance with laws and in the manner and subject to the provisions of Exhibit C attached hereto and made a
part hereof.  Landlord’s Work shall be
deemed to have been substantially completed even though minor punch list
details or adjustments may not then be completed, subject to Landlord’s obligation
to complete such punch list items in a timely manner.  The taking of possession of the Premises by
Tenant for the performance of Alterations or for any other reason whatsoever
shall be deemed an acceptance of the Premises and substantial completion by
Landlord of Landlord’s Work, provided that nothing contained herein shall
relieve Landlord of its obligation to complete Landlord’s Work or to correct
any defects therein.

 

(b)                                 (i)                                     If for any reason whatsoever, Landlord shall be unable
to deliver possession of the Premises on any estimated Commencement Date, then
notwithstanding anything to the contrary hereinbefore contained, the term of
this Lease shall commence on, and the Commencement Date shall be, the date on
which Landlord is able to so deliver possession of the Premises with Landlord’s
Work substantially completed.  Landlord
shall not be subject to any liability for failure to give possession on the
date Landlord’s Work is substantially completed and the validity of this Lease
shall not be impaired under such circumstances, nor the same be construed in
any way to extend the term of this Lease. 
Tenant hereby waives any right to rescind this Lease under the
provisions of Section 223(a) of the Real Property Law of the State of
New York, and agrees that the provisions of this Article are intended to
constitute “an express provision to the contrary” within the meaning of said Section 223(a).

 

(ii)                                  Notwithstanding anything to the contrary
contained herein:  (A) if the
Commencement Date has not occurred for any reason whatsoever on or before the
later of (x) December 1, 2009 and (y) the sixtieth (60th) day after the date this Lease shall have been
executed and delivered by Tenant to Landlord (such later date, the “Target
Date”), then the Rent Commencement Date shall be extended beyond July 1,
2010 by one (1) day for each day after the Target Date on which the
Commencement Date fails to occur; (B) if the Commencement Date has not
occurred for any reason whatsoever on or before February 1, 2010 (as such
date may be extended by one (1) day for each day of delay in the
substantial completion of Landlord’s Work due to Force Majeure Causes, the “Secondary
Target Date”), then the Rent Commencement Date shall be further extended by
two (2) days for each day after the Secondary Target Date on which the
Commencement Date fails to occur; and (C) if the Commencement Date has not
occurred for any reason whatsoever on or before the date that is the later of (I) March 31,
2010, and (II) the one hundred eightieth (180th)
day after the date this Lease shall have been executed and unconditionally
delivered by Tenant to Landlord (such later date, the “Outside Delivery Date”),
then Tenant may terminate this Lease upon twenty (20) days written notice to
Landlord (“Termination Notice”), which notice must be given, if at all,
within ten (10) Business Days after the Outside Delivery Date (time being
of the essence), whereupon any monies 

 

4

 

previously paid by
Tenant to Landlord shall be reimbursed to Tenant (provided that substantial
completion of Landlord’s Work does not occur within such twenty (20) day period
following the giving of such Termination Notice, in which case such notice
shall be null and void and of no force or effect).  If this Lease is not terminated by Tenant as
set forth in Section 2.01(b)(ii)(C), Tenant shall have the right,
but not the obligation, upon thirty (30) days written notice to Landlord (“Work
Notice”), to substantially complete Landlord’s Work and to demand
reimbursement by Landlord of the cost thereof (provided that if substantial
completion of Landlord’s Work shall occur within the thirty (30) day period
following the giving of the Work Notice, then such notice shall be null and
void and of no force or effect).  If
Tenant shall have given the Work Notice to Landlord, then as of the date such
notice shall be deemed to have been given, the extension of the Rent
Commencement Date referred to in clause (B) above, shall cease from
further accruing.  Tenant hereby
acknowledges and agrees that the remedies set forth in this Section 2.01(b)(ii) shall
be Tenant’s sole and exclusive remedies if the Commencement Date shall not have
occurred on or before the Target Date, the Outside Delivery Date or the
Secondary Target Date, as applicable, and that Landlord shall have no other
liability to Tenant for failure of the Commencement Date to occur.  Landlord and Tenant hereby agree that any
dispute as to either the status of substantial completion of Landlord’s Work or
any reimbursement claimed by Tenant for work performed hereunder (or the amount
thereof), shall be subject to determination by expedited arbitration pursuant
to the terms of Section 35.07(b) of this Lease.

 

(c)                                  Notwithstanding anything to the contrary
contained in Sections 1.05 and 2.01(b) above, in the event
that the Commencement Date is delayed by reason of delays caused or occasioned
by the negligence or willful misconduct of Tenant, or Tenant’s failure to
respond to Landlord’s inquiry, or Tenant’s interference with Landlord’s Work,
or a breach of this Lease by Tenant, Tenant (in addition to paying the costs
and damages Landlord may sustain by reason thereof) agrees that at Landlord’s
option, the term of this Lease and Tenant’s obligations shall commence on the
date that this Lease would have commenced had the Commencement Date not been so
delayed by Tenant, or that at Landlord’s option, such delays (if the same have
been caused by a breach of this Lease by Tenant) shall constitute a default on
the part of Tenant (subject to the applicable notice and cure periods) and
shall entitle Landlord to exercise all rights and remedies provided for in this
Lease in the event of such default hereunder.

 

2.02                           Tenant shall use and occupy the Premises
for general, administrative and executive offices (including, without
limitation, software research and development) and such ancillary uses as shall
be reasonably required in connection therewith (the “Permitted Use”),
which uses shall be consistent with a first class, midtown Manhattan office
building, and for no other purpose.

 

2.03                           If any governmental license or permit
(other than a Certificate of Occupancy for the entire Building) shall be
required for the proper and lawful conduct of Tenant’s business in the Premises
or any part thereof, Tenant, at its expense, shall duly procure and thereafter
maintain such license or permit and submit the same to Landlord for
inspection.  Tenant shall at all times
comply with the terms and conditions of each such license or permit.  Additionally, should Alterations (hereinafter
defined) or Tenant’s use of the Premises for other than general, administrative
and executive offices require any modification or amendment of any Certificate
of Occupancy for the Building, Tenant shall, at its expense, take all actions
reasonably requested by Landlord in order to procure any such modification or
amendment and 

 

5

 

shall reimburse Landlord (as Additional Charges) for all reasonable
costs and expenses Landlord incurs in effecting said modifications or
amendments.  The foregoing provisions are
not intended to be deemed Landlord’s consent to any Alterations or to a use of
the Premises not otherwise permitted hereunder nor to require Landlord to
effect such modifications or amendments of any Certificate of Occupancy.

 

2.04                           Tenant shall not at any time use or
occupy the Premises or the Building, or suffer or permit anyone to use or
occupy the Premises, or do anything in the Premises or the Building, or suffer
or permit anything to be done in, brought into or kept on the Premises, which
in any manner (a) violates the Certificate of Occupancy for the Premises
or for the Building; (b) causes or is liable to cause injury to the
Premises or the Building or any equipment, facilities or systems therein; (c) constitutes
a violation of Legal Requirements or Insurance Requirements (as such terms are
hereinafter defined), provided such Insurance Requirements do not prohibit the
use of the Premises for the purposes permitted under Section 2.02
hereof; (d) impairs or tends to impair the character, reputation or
appearance of the Building as a first-class office building; (e) impairs
or tends to impair the proper and economic maintenance, operation and repair of
the Building and/or its equipment, facilities or systems; (f) annoys or
inconveniences or tends to annoy or inconvenience other tenants or occupants of
the Building; (g) constitutes a nuisance, public or private; (h) makes
unobtainable from reputable insurance companies authorized to do business in
New York State all-risk property insurance, or liability, elevator, boiler or
other insurance at standard rates required to be furnished by Landlord under
the terms of any mortgages covering the Premises; or (i) discharges objectionable
fumes, vapors or odors into the Building’s flues or vents or otherwise.

 

2.05                           Tenant shall not use, or suffer or permit
anyone to use, the Premises or any part thereof, for (a) a banking, trust
company, or safe deposit business, (b) a savings bank, a savings and loan
association, or a loan company operating an “off the street” business to the
general public at the Premises, (c) the sale of travelers’ checks and/or
foreign exchange, (d) a retail stock brokerage office (as opposed to an
executive office for a retail stock brokerage company), (e) a restaurant
and/or bar and/or the sale of confectionery and/or soda and/or beverages and/or
sandwiches and/or ice cream and/or baked goods (except if expressly provided
otherwise elsewhere in this Lease), (f) the business of photographic
reproductions and/or offset printing (except that Tenant and its permitted
assignees, subtenants and occupants may use part of the Premises for
photographic reproductions and/or offset printing in connection with, either directly
or indirectly, its own business and/or activities), (g) an employment or
travel agency, (h) a school or classroom, (i) medical or psychiatric
offices, (j) conduct of an auction, (k) gambling activities or (l) the
conduct of obscene, pornographic or similar disreputable activities.  Further, the Premises may not be used by (i) an
agency, department or bureau of the United States Government, any state or
municipality within the United States or any foreign government, or any
political subdivision of any of them; (ii) any charitable, religious,
union or other not-for-profit organization; or (iii) any tax exempt entity
within the meaning of Section 168(j)(4)(A) of the Internal Revenue
Code of 1986, as amended, or any successor or substitute statute, or rule or
regulation applicable thereto (as same may be amended), except that the Tenant
named in this Lease may permit a tax exempt entity that such Tenant controls to
use a portion of the Premises so long as such Tenant is in occupancy of a
majority of the balance of the Premises.

 

6

 

ARTICLE 3

 

Escalations

 

3.01                        The terms defined below shall for the
purposes of this Lease have the meanings herein specified:

 

(a)                                  “Base Operating Amount” shall mean
the Operating Expenses for the Base Operating Year.

 

(b)                                 “Base Operating Year” shall mean
the calendar year commencing on January 1, 2010.

 

(c)                                  “Base Tax Amount” shall mean the
Taxes, as finally determined, for the Tax Year commencing on July 1, 2010.

 

(d)                                 “Landlord’s Statement” shall mean
an instrument or instruments setting forth the Operating Payment (hereinafter
defined) payable by Tenant for a specified Operating Year pursuant to this Article 3.

 

(e)                                  (A)                              “Operating Expenses” shall mean all expenses
paid or incurred by Landlord and Landlord’s affiliates and/or on their behalf
in respect of the repair, maintenance, operation, security and/or replacements
(as permitted under clause (xi) hereof) of the Real Property (hereinafter
defined), including, without limitation, (i) salaries, wages, medical,
surgical, insurance (including, without limitation, group life and disability
insurance) of employees of Landlord or Landlord’s affiliates, union and general
welfare benefits, pension benefits, severance and sick day payments, and other
fringe benefits of employees of Landlord and Landlord’s affiliates and their
respective contractors engaged in such repair, maintenance, operation and/or
security; (ii) payroll taxes, worker’s compensation, uniforms and related
expenses (whether direct or indirect) for such employees; (iii) the cost
of fuel, gas, steam, electricity, heat, ventilation, air conditioning, chilled
and condenser water, water, sewer and other utilities, together with any taxes
and surcharges on, and fees paid in connection with the calculation and billing
of such utilities; (iv) the cost of painting and/or decorating all areas
of the Real Property, excluding, however, any space contained therein which is
demised or to be demised to tenant(s); (v) the cost of casualty, liability,
fidelity, rent and all other insurance regarding the Real Property and/or any
property on, below or above the Real Property, and the repair, maintenance,
operation and/or security thereof; (vi) the cost of all supplies, tools,
materials and equipment, whether by purchase or rental, used in the repair,
maintenance, operation and/or security of the Real Property, and any sales and
other taxes thereon; (vii) the rental value of the Landlord’s Building
office utilized by the personnel of either Landlord or Landlord’s affiliates,
in connection with the repair, maintenance, operation and/or security thereof,
and all Building office expenses, such as telephone, utility, stationery and
similar expenses incurred in connection therewith; (viii) the cost of cleaning,
janitorial and security services, including, without limitation, glass
cleaning, snow and ice removal and garbage and waste collection and/or
disposal; (ix) the cost of all interior and exterior landscaping and all
temporary exhibitions located at or within the Real Property; (x) the
amortized cost of capital improvements made or installed after the expiration
of the Base Operating Year which are 

 

7

 

(a) performed primarily to reduce Operating Expenses (but then not
to exceed the intended reduction), (b) required to comply with any Legal
Requirements that are enacted or take effect after the date of this Lease, (c) required
to comply with any Insurance Requirements that are enacted or take effect after
the date of this Lease, or (d) made for any emergency, life safety,
security or property protection systems (collectively, “Life Safety Capital
Expenditures”), the cost of any such capital improvements made or installed
pursuant to this clause (x) to be amortized by Landlord on a straight-line
basis over the shorter of:  (I) the
useful life of such capital improvement as reasonably determined by Landlord
and (II) fifteen (15) years; (xi) the
cost of repairs made in connection with repairs of cables, fans, pumps,
boilers, cooling equipment, wiring and electrical fixtures and metering,
control and distribution equipment, component parts of the HVAC (as hereinafter
defined), electrical, plumbing, elevator and any life or property protection
systems (including, without limitation, sprinkler systems), window washing
equipment and snow removal equipment, and replacements thereof which are,
in Landlord’s reasonable judgment, economically prudent to make in lieu of
repairs to the replaced item and not made for the purpose of enhancing the
value of the Building (although the fact that the Building is enhanced shall
not preclude inclusion as an Operating Expense), provided that
any such costs that are capital expenditures in accordance with GAAP (as
hereinafter defined) shall only be included in any Operating Year to the extent
of the amount of the annual amortization thereof calculated on a straight-line
basis over the useful life of such item determined in accordance with GAAP,
together with interest thereon at two percent (2%) in excess of the then
current Base Rate per annum; (xii) management fees not exceeding two and
one-half (2-1/2%) percent of gross revenues derived from the Building;
(xiii) all reasonable costs and expenses of legal, bookkeeping, accounting
and other professional services incurred in connection with the operation, and
management of the Real Property except as hereinafter excluded;
(xiv) fees, dues and other contributions paid by or on behalf of Landlord
or Landlord’s affiliates to civic or other real estate organizations provided
same do not exceed the level customarily paid by owners of first-class office
buildings in Midtown Manhattan comparable to the Building; and (xv) all
other fees, costs, charges and expenses properly allocable to the repair,
maintenance, operation and/or security of the Real Property, in accordance with
then prevailing customs and practices of the real estate industry in the
Borough of Manhattan, City of New York. 
The term “Operating Expenses”, as used and defined under this Section 3.01(e),
shall not, however, include the following items:  (1) depreciation and amortization and
other capital expenditures (except as provided above in clauses (x) and
(xi) of this subsection); (2) ground rents and interest on and amortization
of debts (and costs and charges incurred in connection with such financings); (3) the
cost of tenant improvements made for tenant(s) of the Building or
allowances in lieu thereof; (4) brokerage commissions; (5) financing
or refinancing costs; (6) the cost of any work or services performed for
any tenant(s) of the Building (including Tenant), whether at the expense
of Landlord or Landlord’s affiliates or such tenant(s), to the extent that such
work or services are in excess of the work or services which Landlord or
Landlord’s affiliates are required to furnish Tenant under this Lease, at the
expense of Landlord or Landlord’s affiliates; (7) the cost of any
electricity consumed in the Premises or any other space in the Building demised
to tenant(s); (8) Taxes; (9) salaries and fringe benefits for
officers, employees and executives above the grade of Building Manager; (10) amounts
received by Landlord through the proceeds of insurance or condemnation or from
a tenant (other than pursuant to an escalation provision similar to this Article 3)
or otherwise to the extent such amounts are compensation for sums previously
included in Operating Expenses for such 

 

8

 

Operating Year or any prior Operating Year; (11) costs of repairs
or replacements incurred by reason of fire or other casualty or condemnation
except that in connection therewith any amount equal to the deductibles under
Landlord’s insurance policies (or in the event Landlord shall not carry
insurance, an amount of deductibles customarily carried by landlords of
first-class office buildings comparable to the Building) may be included within
Operating Expenses; (12) advertising and promotional expenditures;
(13) legal, accounting and other professional fees incurred in connection
with (i) negotiations or disputes by Landlord, its affiliates or partners
with lenders, superior lessors or tenants, or the filing of a petition in
bankruptcy by or against Landlord or its affiliates; (14) any expenditure
paid to any corporation or entity related to or affiliated with Landlord or the
principals of Landlord to the extent such expenditure exceeds the amount which
would be paid in the absence of such relationship; (15) the cost of any
service furnished to tenants of the Building (including Tenant) to the extent
that such cost is separately reimbursed to Landlord (other than through the
Operating Payments or comparable payments pursuant to escalation-type
provisions similar to the provisions of this Article 3);
(16) cost of works of art of the quality and nature of “fine art” rather
than decorative art work customarily found in first-class office buildings
which are similar to the Building; (17) costs incurred in connection with the
maintenance, repair, operation or leasing of the parking garage in the
Building, except that Landlord may include in Operating Expenses (to the extent
otherwise includable) the cost of any repairs to portions of the Building,
Building systems and facilities and equipment that is physically located in the
garage but which serves the Building generally; (18) costs of capital
improvements made by Landlord in renovating the ground floor lobby of the
Building (except for any capital improvements incurred by Landlord as part of
such renovations or in connection therewith which are Life Safety Capital
Expenditures, such as the installation of security turnstiles, it being agreed
that Life Safety Capital Expenditures may be included in Operating Expenses);
and (19) costs incurred in connection with the abatement of Hazardous Materials
defined as such on the date of this Lease.

 

(B)                                No item of expense shall be counted more
than once either as an inclusion in or an exclusion from Operating Expenses,
and any expense which should be allocated, in accordance with generally
accepted accounting principles (“GAAP”), between the Land and the
Building, on the one hand, and any other property owned by Landlord or an
affiliate of Landlord, on the other hand, shall be properly allocated in
accordance therewith.

 

(f)                                    “Operating Year” shall mean each
calendar year in which occurs any part of the term of this Lease following the
end of the Base Operating Year.

 

(g)                                 “Real Property” shall mean,
collectively, the Building (together with all personal property located therein
and all fixtures, facilities, machinery and equipment used in the operation
thereof, including, but not limited to, all cables, fans, pumps, boilers,
heating, ventilation and air-cooling (“HVAC”) equipment, wiring and
electrical fixtures and metering, control and distribution equipment, component
parts of the HVAC system, electrical, plumbing, elevator and any life or
property protection systems (including, without limitation, sprinkler systems,
window washing equipment and snow removal equipment), the Land, any property
beneath the Land, the curbs, sidewalks and plazas on and/or immediately
adjoining the Land, and all easements, air rights, development rights and other
appurtenances to the Building or the Land or both the Land and the Building.

 

9

 

(h)                                 “Taxes” shall mean (A) the
real estate taxes, vault taxes, assessments and special assessments, and
business improvement district or similar charges levied, assessed or imposed
upon or with respect to the Real Property, by any federal, state, municipal or
other governments or governmental bodies or authorities, and (B) all taxes
assessed or imposed with respect to the rentals payable hereunder other than
general income and gross receipts taxes. 
If at any time during the term of this Lease the methods of taxation
prevailing on the date hereof shall be altered so that in lieu of, or as an
addition to or as a substitute for, the whole or any part of such real estate
taxes, assessments and special assessments now imposed on real estate, there
shall be levied, assessed or imposed (x) a tax, assessment, levy,
imposition, license fee or charge wholly or partially as a capital levy or
otherwise on the rents received therefrom, or (y) any other such
additional or substitute tax, assessment, levy, imposition, fee or charge, then
all such taxes, assessments, levies, impositions, fees or charges or the part
thereof so measured or based shall be deemed to be included within the term “Taxes”
for the purposes hereof.  The term “Taxes”
shall, notwithstanding anything to the contrary contained herein, exclude any
net income, franchise or “value added” tax, inheritance tax or estate tax
imposed or constituting a lien upon Landlord or all or any part of the Land or
Building, except to the extent that any of the foregoing are hereafter assessed
against owners or lessors of real property in their capacity as such (as
opposed to any such taxes which are of general applicability).  If a special assessment
payable in installments is levied against the Real Property, Taxes for any year
shall include only the installment of such assessment, and any interest payable
or paid during such year, as if such assessment were paid over the longest
possible term.

 

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

 

(j)                                     “Tenant’s Operating Share” shall
mean 2.114%, which is the fraction, expressed as a percentage, the numerator of
which is the number of rentable square feet in the Premises and the denominator
of which is the number of rentable square feet in the Building (excluding the
retail space on the ground floor).

 

(k)                                  “Tenant’s Tax Share” shall mean
2.009%, which is the fraction, expressed as a percentage, the numerator of
which is the number of rentable square feet in the Premises and the denominator
of which is the number of rentable square feet in the Building (excluding
storage space (if any)).

 

3.02                           (a)                                  If Taxes payable for any Tax Year, any part of which
shall occur during the term of this Lease, shall exceed the Base Tax Amount, Tenant
shall pay to Landlord as Additional Charges for such Tax Year an amount (the “Tax
Payment”) equal to Tenant’s Tax Share of the amount by which the Taxes for
such Tax Year are greater than the Base Tax Amount.  The Tax Payment for each Tax Year shall be
due and payable in installments in the same manner that Taxes for such Tax Year
are due and payable by Landlord to the City of New York.  Tenant shall pay Tenant’s Tax Share of each
such installment within ten (10) days after the rendering of a statement
therefor by Landlord to Tenant, which statement may be rendered by Landlord so
as to require Tenant’s Tax Share of Taxes to be paid by Tenant thirty (30) days
prior 

 

10

 

to the date such Taxes first become due.  The statement to be rendered by Landlord
shall set forth in reasonable detail the computation of Tenant’s Tax Share of
the particular installment(s) being billed (and, upon written request from
Tenant, Landlord shall provide Tenant with a copy of the tax bill from the
taxing authorities relevant to the computation of Tenant’s Tax Payment).  If there shall be any increase in the Taxes
for any Tax Year, whether during or after such Tax Year, or if there shall be
any decrease in the Taxes for any Tax Year, the Tax Payment for such Tax Year
shall be appropriately adjusted and paid or refunded, as the case may be, in
accordance herewith; in no event, however, shall Taxes be reduced below the
Base Tax Amount.  If during the term of
this Lease, Taxes are required to be paid (either to the appropriate taxing
authorities or as tax escrow payments to a superior mortgagee) in full or in
monthly, quarterly, or other installments, on any other date or dates than as
presently required, then at Landlord’s option, Tenant’s Tax Payments shall be
correspondingly accelerated or revised so that said Tenant’s Tax Payments are
due at least thirty (30) days prior to the date payments are due to the taxing
authorities or such superior mortgagee.

 

(b)                                 If Landlord shall receive a refund of
Taxes for any Tax Year, Landlord shall either pay to Tenant, or credit against
subsequent Fixed Rent and Additional Charges under this Lease, Tenant’s Tax
Share of the net refund (after deducting from such total refund the costs and
expenses, including, but not limited to, appraisal, accounting and legal fees
of obtaining the same, to the extent that such costs and expenses were not
theretofore collected from Tenant for such Tax Year) and Landlord shall notify
Tenant of the amount of such credit if Landlord elects to permit Tenant such
credit; provided, however, such payment or credit to Tenant
shall in no event exceed Tenant’s Tax Payment paid for such Tax Year.

 

(c)                                  Nothing contained in this Lease shall
obligate Landlord to bring any application or proceeding seeking a reduction in
Taxes or assessed valuation.  Tenant, for
itself and its immediate and remote subtenants and successors in interest
hereunder, hereby waives, to the extent permitted by law, any right Tenant may
now or in the future have to protest or contest any Taxes or to bring any
application or proceeding seeking a reduction in Taxes or assessed valuation or
otherwise challenging the determination thereof.

 

(d)                                 The benefit of any discount for the early
payment or prepayment of Taxes shall accrue solely to the benefit of Landlord
and such discount shall not be subtracted from Taxes.

 

(e)                                  In respect of any Tax Year which begins
prior to the Commencement Date or terminates after the Expiration Date, the Tax
Payment in respect of each such Tax Year or tax refund pursuant to
subdivision (b) above therefor shall be prorated to correspond to
that portion of such Tax Year occurring within the term of this Lease.

 

(f)                                    If the Taxes comprising the Base Tax
Amount are reduced as a result of an appropriate proceeding or otherwise, the
Taxes as so reduced shall, for all purposes be deemed to be the Taxes for the
Base Tax Amount and Landlord shall give notice to Tenant of the amount by which
the Tax Payments previously made were less than the Tax Payments required to be
made under this Article 3, and Tenant shall pay the amount of the
deficiency within twenty (20) days after demand therefor.

 

11

 

(g)                                 Tenant shall pay to Landlord within
thirty (30) days after being billed therefor, Tenant’s Tax Share of any
expenses incurred by Landlord in contesting any items comprising Taxes and/or
the assessed value of the Real Property.

 

3.03                        (a)                                  For each Operating Year, subsequent to the Base
Operating Year, any part of which shall occur during the term of this Lease,
Tenant shall pay an amount (“Operating Payment”) equal to the sum of
Tenant’s Operating Share of the amount by which the Operating Expenses for such
Operating Year exceed the Operating Expenses for the Base Operating Year.

 

(b)                                 If during the Base Operating Year or any
Operating Year (i) any rentable space in the Building shall be vacant or
unoccupied, and/or (ii) the tenant or occupant of any space in the
Building undertook to perform work or services therein in lieu of having
Landlord (or Landlord’s affiliates) perform the same and the cost thereof would
have been included in Operating Expenses, then, in any such event(s), the
Operating Expenses for such period shall be reasonably adjusted to reflect the
Operating Expenses that would have been incurred if such space had been
occupied or if Landlord (or Landlord’s affiliates) had performed such work or
services, as the case may be.

 

(c)                                  Landlord may furnish to Tenant, prior to
the commencement of each Operating Year a written statement setting forth in
reasonable detail Landlord’s reasonable estimate of the Operating Payment for
such Operating Year.  Tenant shall pay to
Landlord on the first day of each month during the Operating Year in which the
Operating Payment will be due, an amount equal to one-twelfth (1/12th) of
Landlord’s reasonable estimate of the Operating Payment for such Operating
Year.  If, however, Landlord shall not
furnish any such estimate for an Operating Year or if Landlord shall furnish
any such estimate for an Operating Year subsequent to the commencement thereof,
then (i) until the first day of the month following the month in which
such estimate is furnished to Tenant, Tenant shall pay to Landlord on the first
day of each month an amount equal to the monthly sum payable by Tenant to
Landlord under this Article 3 in respect of the last month of the
preceding Operating Year; (ii) after such estimate is furnished to Tenant,
Landlord shall give notice to Tenant stating whether the installments of the
Operating Payment previously made for such Operating Year were greater or less
than the installments of the Operating Payment to be made for the Operating
Year in which the Operating Payment will be due in accordance with such
estimate, and (A) if there shall be a deficiency, Tenant shall pay the
amount thereof within thirty (30) days after demand therefor, or (B) if
there shall have been an overpayment, Landlord shall within thirty (30) days of
such notice refund to Tenant the amount thereof; and (iii) on the first
day of the month following the month in which such estimate is furnished to
Tenant and monthly thereafter throughout the remainder of such Operating Year
Tenant shall pay to Landlord an amount equal to one-twelfth (1/12th) of the Operating
Payment shown on such estimate.  Landlord
may, during each Operating Year, furnish to Tenant a revised statement of
Landlord’s reasonable estimate of the Operating Payment for such Operating
Year, and in such case, the Operating Payment for such Operating Year shall be
adjusted and paid or refunded or credited as the case may be, substantially in
the same manner as provided in the preceding sentence.

 

(d)                                 Landlord shall furnish to Tenant a
Landlord’s Statement for each Operating Year (and shall endeavor to do so
within one hundred eighty (180) days after the end 

 

12

 

of each Operating Year).  Such
statement shall set forth in reasonable detail the Operating Expenses for such
Operating Year.  If the Landlord’s
Statement shall show that the sums paid by Tenant, if any, under Section 3.03(c) exceeded
the Operating Payment to be paid by Tenant for the Operating Year for which
such Landlord’s Statement is furnished, Landlord shall refund to Tenant the
amount of such excess; and if the Landlord’s Statement for such Operating Year
shall show that the sums so paid by Tenant were less than the Operating Payment
to be paid by Tenant for such Operating Year, Tenant shall pay the amount of
such deficiency within thirty (30) days after demand therefor.

 

(e)                                (i)                                       Tenant, upon reasonable notice given within one
hundred fifty (150) days of the receipt of such Landlord’s Statement, may elect
to have Tenant’s designated (in such notice) Certified Public Accountant (as
hereinafter defined), which Certified Public Accountant is not being
compensated by Tenant, in whole or in part, on a contingency basis, examine
such of Landlord’s books and records (collectively, “Records”) as are
directly relevant to the Landlord’s Statement in question, together with
reasonable supporting data therefor.  As
used in this Section 3.03(e)(i) “Certified Public
Accountant” shall mean either (x) an independent certified public
accounting firm comprised of at least fifteen (15) certified public accountants
or (y) an employee of Tenant who is a certified public accountant.  In making such examination, Tenant agrees,
and shall cause its designated Certified Public Accountant to agree, to keep
confidential (x) any and all information contained in such Records and (y) the
circumstances and details pertaining to such examination and any dispute or
settlement between Landlord and Tenant arising out of such examination, except
as may be required (A) by applicable Legal Requirements or (B) by a
court of competent jurisdiction or arbitrator or in connection with any action
or proceeding before a court of competent jurisdiction or arbitrator, or (C) to
Tenant’s attorneys, accountants and other professionals in connection with any
dispute between Landlord and Tenant; and Tenant will confirm and cause its
Certified Public Accountant to confirm such agreement in a separate written
agreement, if requested by Landlord.  If
Tenant shall not give such notice within such one hundred fifty (150) day
period, then the Landlord’s Statement as furnished by Landlord shall be
conclusive and binding upon Tenant.

 

(ii)                                  In the event that Tenant, after having
given Landlord the notice described in Section 3.03(e)(i) and
having been provided with access and opportunity to examine the Records (but in
no event more than ninety (90) days from the later of the date of such notice
or the date on which the Records are made available to Tenant), shall disagree
with the Landlord’s Statement, then Tenant may send a written notice (“Tenant’s
Statement”) to Landlord of such disagreement, specifying in reasonable
detail the basis for Tenant’s disagreement and the amount of the Operating
Payment Tenant claims is due.  If Tenant
fails to send Tenant’s Statement to Landlord within such ninety (90) day
period, then Tenant shall be deemed to have withdrawn the notice referred to in
subsection (e)(i) above and Landlord’s Statement shall be conclusive and
binding upon Tenant.  Landlord and Tenant
shall attempt to adjust such disagreement. 
If they are unable to do so within thirty (30) days, and provided that the amount of the Operating
Payment Tenant claims is due is substantially different from the amount of the
Operating Payment Landlord claims is due, Landlord and Tenant shall designate a
certified public accountant (the “Arbiter”) whose determination made in
accordance with this Section 3.03(e)(ii) shall be binding upon
the parties; it being understood that if the amount of the Operating Payment
Tenant claims is due is not substantially different from the amount of the
Operating Payment Landlord claims is due, then Tenant shall have no right to
protest such 

 

13

 

amount and shall pay the amount that Landlord claims is due to the
extent not theretofore paid.  If the
determination of Arbiter shall substantially confirm the determination of
Landlord, then Tenant shall pay the cost of the Arbiter.  If the Arbiter shall substantially confirm
the determination of Tenant, then Landlord shall pay the cost of the Arbiter.  In all other events, the cost of the Arbiter
shall be borne equally by Landlord and Tenant. 
The Arbiter shall be a member of an independent certified public
accounting firm having at least three (3) accounting professionals and
having at least five (5) years of experience in commercial real estate
accounting.  In the event that Landlord
and Tenant shall be unable to agree upon the designation of the Arbiter within
thirty (30) days after receipt of notice from the other party requesting
agreement as to the designation of the Arbiter, which notice shall contain the
names and addresses of two or more certified public accountants who are
acceptable to the party sending such notice (any one of whom, if acceptable to
the party receiving such notice as shall be evidenced by notice given by the
receiving party to the other party within such thirty (30) day period, shall be
the agreed upon Arbiter), then either party shall have the right to request the
American Arbitration Association (the “AAA”) (or any organization which
is the successor thereto) to designate as the Arbiter a certified public
accountant whose determination made in accordance with this Section 3.03(e)(ii) shall
be conclusive and binding upon the parties, and the cost charged by the AAA (or
any organization which is the successor thereto), for designating such Arbiter,
shall be shared equally by Landlord and Tenant. 
Landlord and Tenant hereby agree that any determination made by an
Arbiter designated pursuant to this Section 3.03(e)(ii) shall not
exceed the amount(s) as determined to be due in the first instance by
Landlord’s Statement, nor shall such determination be less than the amount(s) claimed
to be due by Tenant in Tenant’s Statement, and that any determination which
does not comply with the foregoing shall be null and void and not binding on
the parties.  In rendering such
determination such Arbiter shall not add to, subtract from or otherwise modify
the provisions of this Lease, including the immediately preceding
sentence.  Notwithstanding the foregoing
provisions of this Section, Tenant, pending the resolution of any contest
pursuant to the terms hereof, shall continue to pay all sums as determined to
be due in the first instance by such Landlord’s Statement and upon the
resolution of such contest, suitable adjustment shall be made in accordance
therewith with appropriate refund to be made by Landlord to Tenant (or credit
allowed Tenant against Fixed Rent and Additional Charges becoming due) if
required thereby.  (The term “substantially”,
as used in the third and fifth sentences of this 3.03(e)(ii), shall mean a
variance of more than four percent (4%) and, as used in the fourth sentence of
this Section 3.03(e)(ii), shall mean a variance of four percent
(4%) or less).

 

3.04                         (a)                                    In any case provided in this Article 3 in
which Tenant is entitled to a refund, Landlord may, in lieu of allowing such
refund, credit against the next due installments of Fixed Rent and Additional
Charges any amounts to which Tenant shall be entitled.  Nothing in this Article 3 shall
be construed so as to result in a decrease in the Fixed Rent hereunder.  If this Lease shall expire before any such
credit shall have been fully applied, then (provided
Tenant is not in default hereunder beyond any applicable notice and grace
periods) Landlord shall refund to Tenant the unapplied balance of such credit.

 

(b)                                 Subject to the last sentence of Section 3.05
hereof, the expiration or termination of this Lease during any Tax Year or
Operating Year (for any part or all of which there is a Tax Payment or
Operating Payment under this Article 3) shall not affect the rights
or obligations of the parties hereto respecting such payment with respect to
the period prior to the 

 

14

 

expiration or earlier termination of this Lease and any Landlord’s
Statement or tax bill, as the case may be, relating to such payment may be sent
to Tenant subsequent to, and all such rights and obligations shall survive, any
such expiration or termination.  Any
payments due under such Landlord’s Statement or tax bill, as the case may be,
shall be payable within thirty (30) days after such statement or bill is sent
to Tenant.

 

(c)                                  The parties agree that the computations
under this Article 3 are intended to constitute a formula for
agreed rental escalation and may or may not constitute an actual reimbursement
to Landlord for Taxes and other costs and expenses paid by Landlord with
respect to the Real Property.

 

3.05                           Landlord’s failure to render or delay in
rendering a Landlord’s Statement with respect to any Operating Year or any
component of the Operating Payment shall not prejudice Landlord’s right to
thereafter render a Landlord’s Statement with respect to any such Operating
Year or any such component, nor shall the rendering of a Landlord’s Statement
for any Operating Year prejudice Landlord’s right to thereafter render a
corrected Landlord’s Statement for such Operating Year.  Landlord’s failure to render or delay in
rendering a bill with respect to any installment of Taxes shall not prejudice
Landlord’s right to thereafter render such a bill for such installment, nor
shall the rendering of a bill for any installment prejudice Landlord’s right to
thereafter render a corrected bill for such installment.  Notwithstanding anything to the contrary
contained in this Lease, if Landlord shall fail to furnish (x) a Landlord’s
Statement for Operating Expenses (or a correction thereof) to Tenant within
five (5) years after the end of an Operating Year, or (y) a bill for
Taxes (or a corrected bill for Taxes) to Tenant for any Tax Year on or before
the date which is eighteen (18) months after the Expiration Date of this Lease
(or eighteen (18) months after such later date as the information required to
calculate such bill for Taxes is reasonably available to Landlord, or if later,
eighteen (18) months after the date of final settlement with the taxing
authority for Taxes for a Tax Year); then, in the case of such failure set
forth in clause (x), Landlord shall be deemed to have waived the payment of any
then unpaid Additional Charges which would have been due pursuant to said
Landlord’s Statement (or corrected Landlord’s Statement) for such Operating
Year, and in the case of such failure set forth in clause (y), Landlord shall deemed
to have waived the payment of any then unpaid Additional Charges which would
have been due pursuant to said bill for Taxes (or corrected bill for Taxes).

 

ARTICLE 4

 

Security

 

4.01                           Subject to Section 4.06
below, on or before 5:00 p.m. EDT on October 15, 2009 (with time
being of the essence), Tenant shall deliver to Landlord as security for the
full and faithful performance and observance by Tenant of Tenant’s covenants
and obligations under this Lease a clean, irrevocable, transferable and
unconditional letter of credit (the “Letter of Credit”) issued by and
drawn upon a commercial bank approved by Landlord (the “Issuing Bank”),
which Letter of Credit shall:  (i) have
a term of not less than one (1) year, (ii) be in the form attached to
this Lease as Exhibit D or
in such other form acceptable to Landlord, (iii) be for the account of
Landlord, (iv) be in at least the amount of $922,936.98 (the “Security
Deposit”), (v) except as otherwise provided in this Section 4.01,
conform and be subject to Uniform 

 

15

 

Customs and Practice for Documentary Credits, International Chamber of
Commerce, Publication No. 590, (vi) be fully transferable by Landlord
without any fees or charges therefor, (vii) provide that Landlord shall be
entitled to draw upon the Letter of Credit upon presentation to an office of
the Issuing Bank in the Borough of Manhattan of a sight draft accompanied by
the Letter of Credit and Landlord’s signed statement that Landlord is entitled
to draw on the Letter of Credit pursuant to this Lease, (viii) provide
that the Letter of Credit shall be deemed automatically renewed, without
amendment, for consecutive periods of one (1) year each year thereafter
during the Term of this Lease, unless the Issuing Bank shall send notice (the “Non-Renewal
Notice”) to Landlord by registered or certified mail, return receipt
requested, not less than sixty (60) days next preceding the then expiration
date of the Letter of Credit that the Issuing Bank elects not to renew such
Letter of Credit, in which case Landlord shall have the right, by sight draft
on an office of the Issuing Bank in the Borough of Manhattan, to receive the
monies represented by the then existing Letter of Credit, and to hold and/or
disburse such proceeds pursuant to the terms of this Article 4, and
(ix) with respect to the Letter of Credit applicable to the last year of
the Term, shall have an expiration date of not earlier than sixty (60) days
after the Expiration Date.  The Issuing
Bank shall have combined capital, surplus and undivided profits of at least
$500 million, a financial strength rating of at least “B”, and a long-term bank
deposit rating of at least “Aa”, as published by Moody’s Investors Services, Inc.,
or its successor (collectively, the “Issuing Bank Criteria”).  If at any time during the Term, the Issuing
Bank does not maintain the Issuing Bank Criteria, then Landlord may so notify
Tenant and, unless Tenant delivers a replacement Letter of Credit from another
commercial bank with an office located in New York City reasonably approved by
Landlord meeting the Issuing Bank Criteria within forty-five (45) days after
receipt of such notice, Landlord may draw the full amount of the Letter of
Credit and hold the proceeds in a cash security deposit in accordance with this
Article 4.

 

4.02                           If an Event of Default or a Bankruptcy
Event has occurred, Landlord may, but shall not be required to, draw the entire
amount or any portion of the Letter of Credit and use, apply or retain the
whole or any part of such proceeds to the extent required for the payment of
any Fixed Rent and Additional Charges or any other sums as to which Tenant is
in default or for any sum which Landlord may expend or may be required to
expend following such Event of Default or Bankruptcy Event, including, but not
limited to, for any damages or deficiency in the re-letting of the Premises,
whether such damages or deficiency accrue before or after summary proceedings
or other re-entry by Landlord.  If
Landlord applies or retains any portion or all of the proceeds of the Letter of
Credit, Tenant shall upon demand immediately restore the amount so applied or
retained by delivering an additional or new Letter of Credit so that, at all
times, the amount of the Security Deposit shall be not less than the amount set
forth in Section 4.01 hereof, failing which Landlord shall have the
same rights and remedies as for the non-payment of Fixed Rent beyond the
applicable grace period.  Any balance of
the proceeds of the Letter of Credit held by Landlord and not used, applied or
retained by Landlord as above provided, and any remaining Letter(s) of
Credit, shall be returned to Tenant within thirty (30) days after the
Expiration Date and after delivery of possession of the entire Premises to
Landlord in accordance with the terms of this Lease, except to the extent of
any uncured default.

 

4.03                           In the event of any sale, transfer or
leasing of Landlord’s interest in the Building whether or not in connection
with a sale, transfer or leasing of the Land to a vendee, transferee or lessee,
Landlord shall transfer the Letter(s) of Credit or any portion(s) thereof
to 

 

16

 

which Tenant is entitled, to the vendee, transferee or lessee and
Landlord shall thereupon be released by Tenant from all liability for the
return or payment thereof, and Tenant shall look solely to the new landlord for
the return or payment of the same.  The
provisions of the preceding sentence shall apply to every subsequent sale,
transfer or leasing of the Building, and any successor of Landlord may, upon a
sale, transfer, leasing or other cessation of the interest of such successor in
the Building, whether in whole or in part, pay over any unapplied part of said
security to any vendee, transferee or lessee of the Building and shall
thereupon be relieved of all liability with respect thereto.  Except in connection with a permitted
assignment of this Lease, Tenant shall not assign or encumber or attempt to
assign or encumber the Letter(s) of Credit deposited herein as security or
any interest thereon to which Tenant is entitled, and neither Landlord nor its
successors or assigns shall be bound by any such assignment, encumbrance,
attempted assignment or attempted encumbrance. 
In any event, in the absence of evidence reasonably satisfactory to
Landlord of an assignment of the right to receive the Security Deposit, or the
remaining balance thereof, Landlord may return the Letter(s) of Credit to
the original Tenant regardless of one or more assignments of this Lease.

 

4.04                           If a Bankruptcy Event has occurred, the
Letter(s) of Credit shall be deemed to be applicable to the payment of the
Fixed Rent and Additional Charges due to Landlord for periods prior to the
institution of such proceedings, and the balance, if any, may be retained by
Landlord in partial satisfaction of Landlord’s damages, to the extent thereof.

 

4.05                           Provided that no Bankruptcy Event or
default shall have occurred and be continuing, at any time on or after the
fifth (5th) anniversary of the Rent Commencement
Date, Tenant may reduce the Security Deposit to the amount of $461,468.49.  In no event shall the Security Deposit be
further reduced to an amount below $461,468.49. 
Such reduction shall be effected either by Tenant exchanging a
replacement Letter of Credit meeting the requirements of this Article 4
in the reduced amount for the existing Letter of Credit, or by the Issuing Bank
delivering an amendment to the Letter of Credit reducing the amount thereof
(but which does not otherwise amend or modify same), which Landlord shall
promptly countersign or authorize in writing if required by the Issuing Bank.

 

4.06                        (A)                                 Notwithstanding anything to the contrary contained in
this Lease, in lieu of delivering a Letter of Credit as required pursuant to
this Article 4, Tenant may on or before 5:00 p.m. EDT on October 15,
2009 (with time being of the essence), deliver the Security Deposit to Landlord
in cash by official bank check or certified check or by wire transfer of
immediately available funds.  Any such
cash Security Deposit shall be deposited in a segregated interest bearing
account in a bank selected by Landlord, and any interest earned on such
Security Deposit, less a one percent (1%) per annum administrative fee which
shall be retained by Landlord, shall be added to the Security Deposit on Tenant’s
behalf.  In the event that Tenant shall
fail to deliver the Letter of Credit or cash Security Deposit to Landlord as
required pursuant to this Article 4 on or before 5:00 p.m. EDT
on October 15, 2009 (with time being of the essence), Landlord shall have
the same rights and remedies as for the non-payment of Fixed Rent beyond the
applicable grace period.

 

(B)                                In the event that Tenant shall deliver
the Security Deposit to Landlord in cash pursuant to Section 4.06(A),
Tenant shall replace the same with a Letter of Credit meeting the requirements
of this Article 4 on or before 5:00 p.m. EST on November 16,

 

17

 

2009 (with time
being of the essence), failing which Landlord shall have the same rights and
remedies as for the non-payment of Fixed Rent beyond the applicable grace
period.

 

ARTICLE 5

 

Subordination, Notice to
Superior Lessors and Mortgagees

 

5.01                           This Lease, and all rights of Tenant
hereunder, are and shall be subject and subordinate to all ground leases,
overriding leases and underlying leases of the Land and/or the Building and/or
that portion of the Building of which the Premises are a part, now or hereafter
existing and to all Mortgages which may now or hereafter affect the Land and/or
the Building and/or that portion of the Building of which the Premises are a
part and/or any of such leases, whether or not such Mortgages shall also cover
other lands and/or buildings and/or leases, to each and every advance made or
hereafter to be made under such Mortgages, and to all renewals, modifications,
replacements and extensions of such leases and such Mortgages and spreaders and
consolidations of such Mortgages.  This Section 5.01
shall be self-operative and no further instrument of subordination shall be
required.  In confirmation of such
subordination, Tenant shall promptly execute, acknowledge and deliver any
instrument that Landlord, the lessor under any such lease or the Holder of any
such Mortgage or any of their respective successors in interest may reasonably
request to evidence such subordination. 
Any lease to which this Lease is, at the time referred to, subject and
subordinate is a “Superior Lease” and the lessor of a Superior Lease or
its successor in interest, at the time referred to, is a “Superior Lessor”;
and any Mortgage to which this Lease is, at the time referred to, subject and
subordinate is a “Superior Mortgage” and the holder of a Superior
Mortgage is a “Superior Mortgagee.”

 

5.02                           If any act or omission of Landlord would
give Tenant the right, immediately or after lapse of a period of time, to
cancel or terminate this Lease, or to claim a partial or total eviction, Tenant
shall not exercise such right (a) until it has given written notice of
such act or omission to Landlord and each Superior Mortgagee and each Superior
Lessor whose name and address shall previously have been furnished to Tenant,
and (b) until a reasonable period for remedying such act or omission shall
have elapsed following the giving of such notice and following the time when
such Superior Mortgagee or Superior Lessor shall have become entitled under
such Superior Mortgage or Superior Lease, as the case may be, to remedy the
same (which reasonable period shall in no event be less than the period to
which Landlord would be entitled under this Lease or otherwise, after similar
notice, to effect such remedy), provided
such Superior Mortgagee or Superior Lessor shall with due diligence give Tenant
notice of intention to, and commence and continue to, remedy such act or
omission.

 

5.03                           If any Superior Lessor or Superior
Mortgagee, or any designee of any Superior Lessor or Superior Mortgagee, shall
succeed to the rights of Landlord under this Lease, whether through possession
or foreclosure action or delivery of a new lease or deed, then at the request
of such party so succeeding to Landlord’s rights (“Successor Landlord”)
and upon such Successor Landlord’s written agreement to accept Tenant’s
attornment, Tenant shall attorn to and recognize such Successor Landlord as
Tenant’s landlord under this Lease and shall promptly execute and deliver any
instrument that such Successor Landlord may reasonably request to evidence such
attornment.

 

18

 

5.04         (a)           (i)            As of the date of this Lease, the sole existing
Superior Mortgage is held by Bank of America, National Association, as
successor by merger to LaSalle Bank National Association, as Trustee in trust
for J.P. Morgan Chase Commercial Mortgage Securities Corp., Commercial Mortgage
Pass-Trough Certificates, Series 2004-CIBC9 (“Lender”).  Annexed as Exhibit J
is Lender’s customary form of non-disturbance agreement (the “Non-Disturbance
Agreement”).  If Tenant wishes to
make revisions to such Non-Disturbance Agreement, Tenant shall promptly
negotiate in good faith commercially reasonable revisions thereto (the “Mortgage
Non-Disturbance Agreement”). 
Promptly following such negotiation, if any, Tenant shall execute, have
acknowledged and deliver the Mortgage Non-Disturbance Agreement to Landlord,
and upon receipt thereof, Landlord shall promptly (x) execute and
acknowledge the same, (y) forward such agreement to Lender for its further
execution and acknowledgement, and (z) deliver one fully executed and acknowledged
original Mortgage Non-Disturbance Agreement to Tenant.

 

(ii)           If Landlord shall fail to deliver to
Tenant, within forty-five (45) days after the date of Tenant’s execution and
delivery of this Lease to Landlord (time being of the essence with respect to
such delivery date), the fully executed and acknowledged Mortgage
Non-Disturbance Agreement (i.e., with the commercially reasonable revisions
required by Tenant), then, within the five (5) Business Day period
immediately after the expiration of such forty-five (45) day period, Tenant may
either (I) terminate this Lease upon written notice given to Landlord or (II) execute,
acknowledge and deliver to Landlord Lender’s customary form of Non-Disturbance
Agreement annexed as Exhibit J
hereto (time being of the essence with respect to Tenant’s exercise of Tenant’s
rights set forth in subsections (I) and (II) hereof).  In the event that Tenant shall timely
exercise its right to terminate this Lease set forth in subsection (I) hereof,
this Lease shall terminate effective as of the date such notice is given by
Tenant to Landlord; provided, however,
that if Tenant shall not have timely exercised its right to terminate this
Lease in accordance with this Section 5.04(a)(ii), then Tenant’s right to
terminate this Lease shall be void and of no force or effect.  If Tenant shall not have exercised its right
to terminate this Lease pursuant to subsection (I) hereof, and Tenant
shall have executed, acknowledged and delivered to Landlord the Non-Disturbance
Agreement in the form set forth as Exhibit J
annexed hereto pursuant to subsection (II) hereof, then upon receipt of
such Non-Disturbance Agreement, Landlord shall within ninety (90) days obtain
and deliver to Tenant such Non-Disturbance Agreement executed by Landlord and
Lender  in recordable form.  In the event of termination as set forth in
subsection (I) hereof, any Fixed Rent and Security Deposit previously paid
or delivered by Tenant to Landlord on account of the Premises shall be returned
to Tenant within thirty (30) days after Tenant’s delivery of such termination
notice.  Tenant hereby acknowledges and
agrees that such termination right (and the return of the first month’s Fixed
Rent and the Security Deposit) and/or Tenant’s right to receive a
Non-Disturbance Agreement in Lender’s customary form shall be Tenant’s sole and
exclusive remedies if Landlord shall fail to deliver the Mortgage
Non-Disturbance Agreement to Tenant pursuant to Section 5.04(a)(i) and
that Landlord shall have no other liability to Tenant for such failure.

 

(b)           Provided that there is not then
outstanding an Event of Default or a Bankruptcy Event, and provided further
that Tenant shall have executed and delivered to Landlord within ten (10) days
after request, a Non-Disturbance Agreement having substantially the same
content of Exhibit J in recordable form,
subject to commercially reasonable changes requested by Tenant, Landlord shall
cause any future Superior Mortgagee or Superior Lessor, as 

 

19

 

a condition
precedent to the subordination of this Lease to the Superior Mortgage or
Superior Lease in question, to execute, acknowledge and deliver to Tenant such
Non-Disturbance Agreement, and Landlord shall execute, acknowledge and deliver
to Tenant the same.  Notwithstanding the
foregoing, Tenant hereby acknowledges and agrees that (x) the form of
Non-Disturbance Agreement executed and delivered by Tenant pursuant to Section 5.04(a) hereof
shall be deemed “commercially reasonable” and (y) Landlord’s failure to
cause any future Superior Mortgagee or Superior Lessor to execute, acknowledge
and deliver to Tenant such Non-Disturbance Agreement shall not constitute a
default under this Lease.

 

5.05         If any Superior Mortgagee shall require
any modification(s) of this Lease, Tenant shall, at Landlord’s request,
promptly execute and deliver to Landlord such instruments effecting such
modification(s) as Landlord shall require, provided that such modification(s) do not increase
Fixed rent or any of Tenant’s other monetary obligations under this Lease, and provided further that such modification(s) do not (x) decrease
any of Tenant’s rights under this Lease, or (y) increase any of Tenant’s
non-monetary obligations under this Lease, in either (x) or (y) beyond
a de  minimis extent.

 

ARTICLE 6

 

Quiet Enjoyment

 

6.01         So long as Tenant pays all of the Fixed
Rent and Additional Charges and observes and performs all of Tenant’s other
obligations hereunder, Tenant shall peaceably and quietly have, hold and enjoy
the Premises without hindrance, ejection or molestation by Landlord or any
person lawfully claiming through or under Landlord, subject, nevertheless, to
the provisions of this Lease and to Superior Leases and Superior
Mortgages.  This covenant shall be
construed as a covenant running with the Land, and is not, nor shall it be
construed as, a personal covenant of Landlord, except to the extent of Landlord’s
interest in the Real Property and the sale and rental proceeds therefrom and
only so long as such interest shall continue, and thereafter Landlord shall be
relieved of all liability hereunder thereafter accruing and this covenant shall
be binding only upon subsequent successors in interest of Landlord’s interest
in this Lease, to the extent of their respective interests, as and when they
shall acquire the same, and so long as they shall retain such interest.

 

ARTICLE 7

 

Assignment,
Subletting and Mortgaging

 

7.01         Tenant shall not, whether voluntarily,
involuntarily, or by operation of law or otherwise (a) assign in whole or
in part or otherwise transfer in whole or in part this Lease or the term and
estate hereby granted, or advertise to do so, (b) sublet the Premises or
any part thereof, or publicly offer or advertise in the media to do so (which
shall not prohibit the listing of space with a licensed real estate broker
and/or listing service in accordance with the terms of this Article 7),
or allow the Premises or any part thereof to be used, occupied or utilized by
anyone other than Tenant and Tenant Affiliates, (c) mortgage, pledge,
encumber or otherwise hypothecate this Lease or the Premises or any part
thereof in any manner whatsoever or (d) permit the Premises or any part
thereof to be occupied, or used for desk space, mailing 

 

20

 

privileges or otherwise, by any person other than Tenant, without in
each instance obtaining the prior written consent of Landlord.

 

7.02         (A)          (1)           If Tenant is a corporation, the provisions of
subdivision (a) of Section 7.01 shall apply to a transfer
(however accomplished, whether in a single transaction or in a series of
related transactions or in a series of unrelated transactions, if in the later
case effected within any three (3) year period) of stock (or any other
mechanism such as, by way of example, the issuance of additional stock, a stock
voting agreement or change in class(es) of stock) which results in a change of
control of Tenant as if such transfer of stock (or other mechanism) which
results in a change of control of Tenant were an assignment of this Lease,
except that (x) the transfer of the outstanding capital stock of Tenant by
persons or parties through the “over the counter market” or through any
recognized stock exchange, (other than those deemed “insiders” within the meaning
of the Securities Exchange Act of 1934, as amended) shall not be deemed an
assignment of this Lease, and (y) the transfer (however accomplished,
whether in a single transaction or in a series of related transactions or in a
series of unrelated transactions, if in the later case effected within any
three (3) year period) of stock (or any other mechanism such as, by way of
example, the issuance of additional stock, a stock voting agreement or change
in class(es) of stock) of the Tenant named herein (or a Tenant Successor) shall
not be deemed an assignment of this Lease, provided that the same shall be done
for a valid business reason and not for the purpose of avoiding the
restrictions on transfer, subletting and assignment contained in this Article 7.  The provisions of this Section 7.02(A)(1) shall
not apply to subtenants.

 

(2)           If Tenant is a partnership or joint
venture or limited liability company (a “LLC”), said provisions shall
apply with respect to a transfer (however accomplished, whether in a single
transaction or in a series of related transactions or in a series of unrelated
transactions, if in the later case effected within any three (3) year
period) of an interest in the distributions of profits and losses of such
partnership, joint venture or LLC (or other mechanism, such as, by way of
example, the creation of additional general partnership or limited partnership
interests) which results in a change of control of such partnership, joint
venture or LLC, as if such transfer of an interest in the distributions of
profits and losses of such partnership, joint venture or LLC which results in a
change of control of such partnership, joint venture or LLC were an assignment
of this Lease except that transfer thereof (however accomplished, whether in a
single transaction or in a series of related transactions or in a series of
unrelated transactions, if in the later case effected within any three (3) year
period) of an interest (or other mechanism, such as, by way of example, the
creation of additional general partnership or limited partnership interests) of
the Tenant named herein (or a Tenant Successor) shall not be deemed an
assignment of this Lease, provided that the same shall be done for a valid
business reason and not for the purpose of avoiding the restrictions on
transfer, subletting and assignment contained in this Article 7.  The provisions of this Section 7.02(A)(2) shall
not apply to subtenants.

 

(B)           Notwithstanding the foregoing, Tenant
may, without Landlord’s prior written consent, sublet the Premises or assign
the Lease to (a) a subsidiary, affiliate, division or corporation
controlling, controlled by or under common control with Tenant (each, a “Tenant
Affiliate”), (b) a successor corporation related to Tenant by merger,
consolidation, nonbankruptcy reorganization, or government action, or (c) a
purchaser of substantially all of 

 

21

 

Tenant’s assets
(each successor or purchaser pursuant to clause (b) or (c) hereof, a “Tenant
Successor”), provided that (i) in
the case of (b) and (c) above, the Tenant Successor is a reputable
entity of good character and has a net worth computed in accordance with GAAP
at least equal to the net worth of Tenant immediately prior to such merger,
consolidation, nonbankruptcy reorganization, government action, or transfer,
and proof satisfactory to Landlord of such net worth shall have been delivered
to Landlord no later than ten (10) days after the effective date of any
such transaction, (ii) a duplicate original instrument of sublease or
assignment in form and substance satisfactory to Landlord, duly executed by
Tenant, shall have been delivered to Landlord, in the case of (b) and (c) above,
no later than ten (10) days after the effective date of any such transaction,
and in the case of (a) above, at least ten (10) days prior to the
effective date of any such transaction), (iii) an instrument in form and
substance reasonably satisfactory to Landlord, duly executed by the assignee,
in which such assignee assumes (as of the Commencement Date) observance and
performance of, and agrees to be personally bound by, all of the terms,
covenants and conditions of this Lease on Tenant’s part to be performed and
observed shall have been delivered to Landlord no later than (x) ten (10) days
after the effective date of any such transaction (in the case of (b) and (c) above)
or (y) ten (10) days prior to the effective date of any such
transaction (in the case of (a) above), and (iv) such merger,
consolidation or transfer shall be for a business purpose and not principally
for the purpose of transferring this Lease. 
For purposes of this Section 7.02, the term “control”
shall mean, in the case of a corporation, ownership or voting control, directly
or indirectly, of at least fifty percent (50%) of all the voting stock, and in
case of a joint venture or partnership or similar entity, ownership, directly
or indirectly, of at least fifty percent (50%) of all the general or other
partnership (or similar) interests therein. 
Any agreement pursuant to which (x) Tenant is relieved from the
obligation to pay to Landlord, or a third party agrees to pay to Landlord on
Tenant’s behalf, all or a part of Fixed Rent or Additional Charges under this
Lease, and/or (y) such third party undertakes or is granted any right to
assign or attempt to assign this Lease or sublet or attempt to sublet all or
any portion of the Premises, shall be deemed an assignment of this Lease and
subject to the provisions of Section 7.01.  Furthermore, the provisions of Section 7.01
shall not be deemed to prohibit the simultaneous occupancy of the Premises by,
or a subletting of all or a portion of the Premises to, a Tenant Affiliate, provided, however that (I) Landlord
shall be given not less than ten (10) days prior written notice of any
such sublease or occupancy arrangement accompanied by reasonable evidence of
such affiliate relationship, and (II) in the event of the cessation of
such affiliate relationship while such sublease or occupancy is continuing,
such sublease or occupancy shall at the time of such cessation be deemed a
transaction to which all of the terms of this Article 7 shall
apply.

 

7.03         If this Lease be assigned, whether or not
in violation of the provisions of this Lease, Landlord may collect rent from
the assignee.  If the Premises or any
part thereof are sublet or used or occupied by anybody other than Tenant,
whether or not in violation of this Lease, Landlord may, after default by
Tenant, and expiration of Tenant’s time to cure such default, collect rent from
the subtenant or occupant.  In either
event, Landlord shall apply the net amount collected to the Fixed Rent and
Additional Charges herein reserved, but no such assignment, subletting,
occupancy or collection shall be deemed a waiver of any of the provisions of Section 7.01,
or the acceptance of the assignee, subtenant or occupant as tenant, or a
release of Tenant from the performance by Tenant of Tenant’s obligations under
this Lease.  The consent by Landlord to a
particular assignment, mortgaging, subletting or use or occupancy by others
shall not in any way be considered a consent by Landlord to any other or
further

 

22

 

assignment, mortgaging or subletting or use or occupancy by others not
expressly permitted by this Article 7.  References in this Lease to subleases shall
also include licensees.

 

7.04         Any assignment or transfer, whether made
with Landlord’s consent pursuant to Sections 7.01 or 7.11 hereof or
without Landlord’s consent pursuant to Section 7.02 hereof, shall
be made only if, and shall not be effective until, the assignee shall execute,
acknowledge and deliver to Landlord an agreement in form and substance
reasonably satisfactory to Landlord whereby the assignee shall assume the
obligations of this Lease on the part of Tenant to be performed or observed and
whereby the assignee shall agree that the provisions in Section 7.01
shall, notwithstanding such assignment or transfer, continue to be binding upon
it in respect of all future assignments and transfers.  The original named Tenant covenants that,
notwithstanding any assignment or transfer, whether or not in violation of the
provisions of this Lease, and notwithstanding the acceptance of Fixed Rent and/or
Additional Charges by Landlord from an assignee, transferee, or any other
party, the original named Tenant shall remain fully liable for the payment of
the Fixed Rent and Additional Charges and for the performance and observance of
other obligations of this Lease on the part of Tenant to be performed or
observed.

 

7.05         The joint and several liability of Tenant
and any immediate or remote successor in interest of Tenant and the due
performance of the obligations of this Lease on Tenant’s part to be performed
or observed shall not be discharged, released or impaired in any respect by any
agreement or stipulation made by Landlord extending the time of, or modifying
any of the obligations of, this Lease, or by any waiver or failure of Landlord
to enforce any of the obligations of this Lease.

 

7.06         The listing of any name other than that
of Tenant, whether on the doors of the Premises or the Building directory, or
otherwise, shall not operate to vest any right or interest in this Lease or in
the Premises, nor shall it be deemed to be the consent of Landlord to any
assignment or transfer of this Lease or to any sublease of the Premises or to
the use or occupancy thereof by others.

 

7.07         Notwithstanding anything to the contrary
contained in this Article 7, if Tenant shall at any time or times
during the term of this Lease desire to assign this Lease or sublet all or part
of the Premises, Tenant shall give notice thereof to Landlord, which notice
shall set forth (i) in the case of a proposed subletting, the area
proposed to be sublet, and, in the case of a proposed assignment such notice
shall set forth Tenant’s intention to assign this Lease, (ii) the term of
the proposed subletting including the proposed dates of the commencement and
the expiration of the term of the proposed sublease or the effective date of
the proposed assignment, as the case may be, (iii) the rents, work
contributions, and all other material provisions that are proposed to be
included in the transaction, (iv) in reasonable detail, the identity of
the proposed assignee or subtenant, the nature of its business and its proposed
use of the Premises, (v) current financial information with respect to the
proposed assignee or subtenant, including, without limitation, its most recent
financial report and (vi) such other information as Landlord may
reasonably request.  Except for any
assignment or sublease which does not require Landlord’s consent pursuant to Section 7.02
hereof and for any deemed assignment under Section 7.02(A), such
notice shall be deemed an irrevocable offer from Tenant to Landlord whereby
Landlord (or Landlord’s designee) may, at its option, (a) sublease such 

 

23

 

space from Tenant upon the terms and conditions hereinafter set forth
(if the proposed transaction is a sublease of all or part of the Premises), (b) have
this Lease assigned to it or its designee or terminate this Lease (if the
proposed transaction is an assignment or a sublease of all or substantially all
of the Premises or a sublease of a portion of the Premises which, when
aggregated with other subleases then in effect, covers all or substantially all
of the Premises), or (c) terminate this Lease with respect to the space
covered by the proposed sublease (if the proposed transaction is a sublease of
more than 5,000 rentable square feet of the Premises for a term of more than
five (5) years).  Said option may be
exercised by Landlord by notice to Tenant at any time within thirty (30) days
after such notice has been given by Tenant to Landlord and Landlord shall have
received all other information required to be furnished to Landlord by Tenant
pursuant to the provisions of this Article 7; and during such
thirty (30) day period Tenant shall not assign this Lease or sublet such space
to any person.

 

7.08         (a)           If
Landlord exercises its option to terminate this Lease in the case where Tenant
desires either to assign this Lease or sublet all or substantially all of the
Premises, then this Lease shall end and expire on the date that such assignment
or sublet was to be effective or commence, as the case may be, and the Fixed
Rent and Additional Charges shall be paid and apportioned to such date.

 

(b)           If Landlord exercises its option to have
this Lease assigned to it (or its designee) in the case where Tenant desires
either to assign this Lease or to sublet all or substantially all of the
Premises, then Tenant shall assign this Lease to Landlord (or Landlord’s
designee) by an assignment in form and substance reasonably satisfactory to
Landlord.  Such assignment shall be
effective on the date the proposed assignment was to be effective or the date
the proposed sublease was to commence, as the case may be.  Tenant shall not be entitled to consideration
or payment from Landlord (or Landlord’s designee) in connection with any such
assignment (including, without limitation, payment of any portion of any
profits realized by Landlord or Landlord’s designee in connection with any
further assignment of this Lease or any sublease of the Premises or any portion
thereof).  If the proposed assignee or
sublessee was to receive any consideration or concessions from Tenant in
connection with the proposed assignment or sublease, then Tenant shall pay such
consideration and/or grant any such concessions to Landlord (or Landlord’s
designee) on the date Tenant assigns this Lease to Landlord (or Landlord’s
designee).

 

7.09         If Landlord exercises its option to
terminate this Lease with respect to the space covered by Tenant’s proposed
sublease in any case where Tenant desires to sublet part of the Premises, then (a) this
Lease shall end and expire with respect to such part of the Premises on the
date that the proposed sublease was to commence; (b) from and after such
date the Fixed Rent and Additional Charges shall be adjusted, based upon the
proportion that the rentable area of the Premises remaining bears to the total
rentable area of the Premises; and (c) Tenant shall pay to Landlord, upon
demand, as Additional Charges hereunder the costs incurred by Landlord in
physically separating such part of the Premises from the balance of the
Premises and in complying with any Legal Requirements relating to such
separation (unless by the terms of the proposed subletting, the proposed
sublessee had agreed to undertake such work at its cost, in which case Landlord
shall physically separate such part of the Premises from the balance of the
Premises and comply with any Legal Requirements relating to such separation at
Landlord’s cost).

 

24

 

7.10         If Landlord exercises its option to
sublet the Premises or the portion(s) of the Premises which Tenant desires
to sublet, such sublease to Landlord or its designee (as subtenant) shall be at
the lower of (i) the rental rate per rentable square foot of Fixed Rent
and Additional Charges then payable pursuant to this Lease or (ii) the
rentals set forth in the proposed sublease, and shall be for the same term as
that of the proposed subletting, and:

 

(a)           The sublease shall be expressly subject
to all of the covenants, agreements, terms, provisions and conditions of this
Lease except such as are irrelevant or inapplicable, and except as otherwise
expressly set forth to the contrary in this Section;

 

(b)           Such sublease shall be upon the same
terms and conditions as those contained in the proposed sublease, except such
as are irrelevant or inapplicable and except as otherwise expressly set forth
to the contrary in this Section;

 

(c)           Such sublease shall give the sublessee
the unqualified and unrestricted right to assign such sublease or any interest
therein and/or to sublet the space covered by such sublease or any part or
parts of such space, in each case without Tenant’s permission and without
Tenant having any rights to receive additional payments in connection therewith
(including, without limitation, payments of any portion of the subtenant’s
profits in connection with any such assignment or sublease), and to make any
and all changes, alterations, and improvements in the space covered by such
sublease (provided, however, that in the event of a
sublease of less than all or substantially all of the remaining term of this
Lease, Tenant may require that Landlord remove any such alterations at the
expiration or earlier termination of such sublease and restore such space to
its prior condition and configuration, provided further
that by the terms of the proposed subletting by Tenant, the proposed sublessee
had agreed to undertake such work at its cost);

 

(d)           Such sublease shall provide that any
assignee or further subtenant of Landlord or its designee, may, at the election
of Landlord, be permitted to make alterations, decorations and installations in
such space or any part thereof and shall also provide in substance that any
such alterations, decorations and installations in such space therein made by
any assignee or subtenant of Landlord or its designee may be removed, in whole
or in part, by such assignee or subtenant, at its option, prior to or upon the
expiration or other termination of such sublease, provided that such assignee or subtenant, at its expense,
shall repair any damage and injury to such space so sublet caused by such
removal and Tenant shall not, in any event, be obligated to remove any
alterations, decorations and installations made by Landlord or its designee or
any subtenant or assignee thereof (provided, however,
that in the event of a sublease of less than all or substantially all of the
remaining term of this Lease, Tenant may require that Landlord remove any such
alterations at the expiration or earlier termination of such sublease and
restore such space to its prior condition and configuration, provided further that by the terms of the proposed
subletting by Tenant, the proposed sublessee had agreed to undertake such work
at its cost); and

 

(e)           Such sublease shall also provide that (i) the
parties to such sublease expressly negate any intention that any estate created
under such sublease be merged with any other estate held by either of said
parties, (ii) any assignment or subletting by Landlord or its designee (as
the subtenant) may be for any purpose or purposes that Landlord, in 

 

25

 

Landlord’s uncontrolled discretion, shall deem suitable or appropriate
(provided that if Tenant shall remain an occupant of the floor on which such space
shall be subleased, the permitted use of such space shall be consistent with
the permitted uses of other leased space in the Building), (iii) Tenant,
at Tenant’s expense, shall and will at all times provide and permit reasonably
appropriate means of ingress to and egress from such space so sublet by Tenant
to Landlord or its designee, (iv) Landlord, at Tenant’s expense, may make
such alterations as may be required or reasonably deemed necessary by Landlord
to physically separate the subleased space from the balance of the Premises and
to comply with any Legal Requirements relating to such separation (unless by
the terms of the proposed subletting by Tenant, the proposed sublessee had
agreed to undertake such work at its cost, in which case Landlord shall
physically separate such part of the Premises from the balance of the Premises
and comply with any Legal Requirements relating to such separation at Landlord’s
cost), and (v) that at the expiration of the term of such sublease, Tenant
will accept the space covered by such sublease in its then existing condition,
subject to the obligations of the sublessee and Landlord to make such repairs
thereto as may be necessary to preserve the premises demised by such sublease
in good order and condition and subject to any restoration obligations
hereunder.  Performance by Landlord or
its designee under such sublease shall be deemed performance by Tenant of a
similar obligation under this Lease related to such space, and any default
under any such sublease shall not give rise to a default under a similar
obligation in this Lease, nor shall Tenant be liable for any default under this
Lease or be deemed to be in default hereunder if such default is occasioned by
or arises from any act or omission of the subtenant under such sublease or is
occasioned by or arises from any act or omission of any occupant under or
pursuant to any such sublease.

 

(f)            The terms of Article 18 of
this Lease shall be incorporated into such sublease between Tenant and Landlord
as if fully set forth therein, except that reference to “Landlord” shall be
deemed a reference to Tenant, as sublandlord, and the reference to “Tenant”
shall be deemed a reference to Landlord, as subtenant.

 

7.11         In the event Landlord does not exercise
its options pursuant to Section 7.07 to so sublet the Premises or
terminate (in whole or in part) or have assigned to it or its designee this
Lease and, provided that Tenant is not in default of any of Tenant’s
obligations under this Lease after the giving of notice and the expiration of
any applicable cure period, Landlord’s consent (which must be in writing and in
form reasonably satisfactory to Landlord) to the proposed assignment or
sublease shall not be unreasonably withheld, provided
and upon condition that:

 

(a)           Tenant shall have complied with the
provisions of Section 7.07 and Landlord shall not have exercised
any of its options under said Section 7.07 within the time
permitted therefor and Tenant shall have delivered to Landlord a duplicate
original of the sublease or assignment instrument and all other documents to be
executed in connection therewith;

 

(b)           In Landlord’s reasonable judgment the
proposed assignee or subtenant is engaged in a business and the Premises, or
the relevant part thereof, will be used in a manner which (i) is in
keeping with the then standards of the Building, and (ii) will not violate
any negative covenant as to use contained in any other Lease of space in the
Building (and 

 

26

 

Landlord shall advise Tenant of any such negative covenants in writing
promptly after written request therefor by Tenant made in connection with a
proposed subletting or assignment);

 

(c)           The proposed assignee or subtenant is a
reputable person or entity of good character and with sufficient financial
worth considering the responsibility involved, and Landlord has been furnished
with reasonable evidence thereof;

 

(d)           Neither (i) the proposed assignee or
sublessee nor (ii) any person which, directly or indirectly, controls, is controlled
by, or is under common control with, the proposed assignee or sublessee or any
person who controls the proposed assignee or sublessee, is then an occupant of
any part of the Building or a party who dealt with Landlord or Landlord’s agent
(directly or through a broker) with respect to space in the Building during the
five (5) months immediately preceding Tenant’s request for Landlord’s
consent, provided, in either such case, that Landlord then has, or will within
the next five (5) month period have, comparable space available in the
Building;

 

(e)           The form of the proposed sublease shall
be reasonably satisfactory to Landlord and shall comply with the applicable
provisions of this Article 7;

 

(f)            The Premises shall not be subdivided into
more than four (4) separate units per floor and there shall be no more
than four (4) occupants (including Tenant) per floor in the Premises at
any time;

 

(g)           Tenant shall reimburse Landlord on demand
for any reasonable out-of-pocket costs that may be incurred by Landlord in
connection with said assignment or sublease, including, without limitation, the
costs of making investigations as to the acceptability of the proposed assignee
or subtenant, and the reasonable out of pocket legal costs incurred in
connection with the granting of any requested consent; and

 

(h)           Tenant shall not have (i) publicly
advertised (which shall not prohibit the listing of the space with a licensed
real estate broker and/or a listing service in accordance with the terms of
this Article 7) the availability of the Premises without prior
notice to and approval by Landlord of the content thereof, nor shall any
advertisement state the name (as distinguished from the address) of the
Building or the proposed rental, or (ii) listed the Premises for subletting,
whether through a broker, agent, representative, or otherwise at a rental rate
less than the Fixed Rent and Additional Charges at which Landlord is then
offering to lease other space in the Building, but nothing contained in this Article 7
shall be deemed to (x) prohibit Tenant from listing with brokers and/or a
listing service the availability of the Premises for sublet or assignment or (y) preclude
Tenant from entering into a sublease of all or any portion of the Premises or
an assignment of this Lease at any price.

 

7.12         (a)           In
the event that in connection with Tenant’s request for Landlord’s consent
pursuant to Section 7.11 hereof, the proposed sublease or proposed
assignment delivered to Landlord contains provisions which are “substantially
different from” (as hereinafter defined) the terms set forth in the notice
delivered to Landlord pursuant to Section 7.07 hereof, then in such
event, Tenant’s request for consent pursuant to Section 7.11 hereof
shall be deemed to be an irrevocable offer from Tenant to Landlord as to which
Landlord 

 

27

 

shall have all of the options set forth in Section 7.07
hereof.  The terms of a proposed sublet
or proposed assignment shall be deemed “substantially different from” the terms
set forth in the notice delivered to Landlord pursuant to Section 7.07
hereof if the economic terms of such proposed sublet or assignment on an
aggregate basis differ by more than five (5%) percent from the terms contained
in the terms set forth in the notice delivered to Landlord pursuant to Section 7.07
hereof, taking into account all economic aspects of such proposed transaction,
including, without limitation, whether a proposed sublessee had agreed to
undertake restoration of the Premises at the end of the sublease term.

 

(b)           In the event that Landlord fails to
exercise any of its options under Section 7.07 hereof, and Tenant
fails to request Landlord’s consent to an assignment or sublease on the terms
and conditions set forth in the notice delivered to Landlord pursuant to Section 7.07
hereof within five (5) months from the date of Landlord’s response to such
notice, then Tenant shall again comply with all of the provisions and
conditions of Section 7.07 hereof before assigning this Lease or
subletting all or part of the Premises.

 

7.13         With respect to each and every sublease
or subletting authorized by Landlord under the provisions of this Lease, it is
further agreed:

 

(a)           No subletting shall be for a term
(including any renewal or extension options contained in the sublease) ending
later than one (1) day prior to the expiration date of this Lease.

 

(b)           No sublease shall be valid, and no
subtenant shall take possession of the Premises or any part thereof, until an
executed counterpart of such sublease (and all ancillary documents executed in
connection with, with respect to or modifying such sublease) has been delivered
to Landlord.

 

(c)           Each sublease shall provide that it is
subject and subordinate to this Lease and to any matters to which this Lease is
or shall be subordinate, and that in the event of termination, reentry or
dispossession by Landlord under this Lease Landlord may, at its option, take
over all of the right, title and interest of Tenant, as sublessor, under such
sublease, and such subtenant shall, at Landlord’s option, attorn to Landlord
pursuant to the then executory provisions of such sublease, except that
Landlord shall not be (i) liable for any previous act or omission of
Tenant under such sublease, (ii) subject to any credit, offset, claim,
counterclaim, demand or defense which such subtenant may have against Tenant, (iii) bound
by any previous modification of such sublease not previously approved by
Landlord or by any previous prepayment of more than one (1) month’s rent, (iv) required
to account for any security deposit of the subtenant other than any security
deposit actually delivered to Landlord by Tenant, (v) bound by any
obligation to make any payment to such subtenant or grant any credits, except
for services, repairs, maintenance and restoration provided for under the
sublease to be performed after the date of such attornment, and except for any
initial work allowance provided for under the sublease, (vi) responsible
for any monies owing by Landlord to the credit of Tenant or (vii) required
to remove any person occupying the Premises or any part thereof.

 

28

 

(d)           Each sublease shall provide that the
subtenant may not assign its rights thereunder or further sublet the space
demised under the sublease, in whole or in part, except in compliance with all
of the terms and provisions of this Article 7.

 

7.14         (a)           If
Landlord shall give its consent to any assignment of this Lease or to any
sublease, Tenant shall in consideration therefor pay to Landlord, as Additional
Charges, an amount equal to fifty (50%) of any
Assignment Profit (hereinafter defined) or an amount equal to fifty
(50%) of any  Sublease Profit
(hereinafter defined), as the case may be.

 

(b)           For purposes of this Section 7.14,
the term “Assignment Profit” shall mean an amount equal to all sums and
other considerations paid to Tenant by the assignee for or by reason of such
assignment (including, but not limited to, sums paid for the sale or rental of
Tenant’s fixtures, leasehold improvements, equipment, furniture, furnishings or
other personal property, less, in the case of a sale thereof, the then net unamortized
or undepreciated portion (determined on the basis of Tenant’s federal income
tax returns) of the amount, if any, by which the original cost thereof exceeded
any amounts paid for or contributed by Landlord which were applied by Tenant
against such original cost pursuant to the terms of this Lease) after deducting
therefrom the amount of Tenant’s Costs (as hereinafter defined).

 

(c)           For purposes of this Section 7.14,
the term “Sublease Profit” shall mean in any year of the term of this
Lease (i) any rents, additional charges or other consideration payable
under the sublease to Tenant by the subtenant which is in excess of the Fixed
Rent and Additional Charges accruing during such year of the term of this Lease
in respect of the subleased space (at the rate per square foot payable by
Tenant hereunder) pursuant to the terms hereof, and (ii) all sums paid for
the sale or rental of Tenant’s fixtures, leasehold improvements, equipment,
furniture or other personal property, less, in the case of the sale thereof,
the then net unamortized or undepreciated portion (determined on the basis of
Tenant’s federal income tax returns) of the amount, if any, by which the
original cost thereof exceeded any amounts paid for or contributed by Landlord
which were applied by Tenant against such original cost pursuant to the terms
of this Lease), which net unamortized amount shall be deducted from the sums
paid in connection with such sale in equal monthly installments over the
balance of the term of the sublease (each such monthly deduction to be in an
amount equal to the quotient of the net unamortized amount, divided by the
number of months remaining in the term of this Lease) after deducting therefrom
the amount of Tenant’s Costs.

 

(d)           For purposes of this Section 7.14,
the term “Tenant’s Costs” shall mean the reasonable expenses actually
incurred by Tenant in connection with the assignment and subletting in question
for transfer taxes, brokerage commissions, advertising expenses, attorneys’
fees, any commercially reasonable rent credit or concession or work allowance
and any tenant work performed by Tenant at its expense in connection with such
assignment or subletting, based on bills, receipts or other evidence of such
costs reasonably satisfactory to Landlord; provided that, in determining
Sublease Profit, Tenant’s Costs shall be amortized on a straight-line basis
over the term of the sublease.

 

(e)           The sums payable under this Section 7.14
shall be paid to Landlord as and when paid by the assignee or subtenant to
Tenant.

 

29

 

7.15         Except for any subletting by Tenant to
Landlord or its designee pursuant to the provisions of this Article 7,
each subletting shall be subject to all of the covenants, agreements, terms,
provisions and conditions contained in this Lease.  Notwithstanding any such subletting to
Landlord or any such subletting to any other subtenant and/or acceptance of
rent or additional rent by Landlord from any subtenant,  but subject to the provisions of Sections 7.10(d) and
(e) hereof to the extent applicable, Tenant shall and will remain
fully liable for the payment of the Fixed Rent and Additional Charges due and
to become due hereunder and for the performance of all the covenants,
agreements, terms, provisions and conditions contained in this Lease on the
part of Tenant to be performed and all acts and omissions of any licensee or
subtenant or anyone claiming under or through any subtenant which shall be in
violation of any of the obligations of this Lease, and any such violation shall
be deemed to be a violation by Tenant. 
Tenant further agrees that notwithstanding any such subletting, no other
and further subletting of the Premises by Tenant or any person claiming through
or under Tenant (except as provided in Section 7.10 hereof) shall
or will be made except upon compliance with and subject to the provisions of
this Article 7.  If Landlord
shall decline to give its consent to any proposed assignment or sublease, or if
Landlord shall exercise any of its options under Section 7.07
hereof, Tenant shall indemnify, defend and hold harmless Landlord against and
from any and all loss, liability, damages, costs and expenses (including, but
not limited to, reasonable counsel fees) resulting from any claims that may be
made against Landlord by the proposed assignee or sublessee or by any brokers
or other persons claiming a commission or similar compensation in connection
with the proposed assignment or sublease.

 

7.16         If Tenant is a general partnership (or is comprised of
two (2) or more persons, individually and/or as co-partners of a general
partnership) or if Tenant’s interest in this Lease shall be assigned to a
general partnership (or to two (2) or more persons, individually and/or as
co-partners of a general partnership) pursuant to this Article 7
(any such partnership and such persons are referred to in this Section as “Partnership
Tenant”), the following provisions of this Section 7.16 shall
apply to such Partnership Tenant:  (a) the
liability of each of the parties comprising Partnership Tenant shall be joint
and several, (b) each of the parties comprising Partnership Tenant hereby
consents in advance to, and agrees to be bound by, any written instrument which
may hereafter be executed, changing, modifying or discharging this Lease, in
whole or in part, or surrendering all or any part of the Premises to Landlord
or renewing or extending this Lease and by any notices, demands, requests or
other communications which may hereafter be given, by Partnership Tenant or by
any of the parties comprising Partnership Tenant, (c) any bills,
statements, notices, demands, requests or other communications given or
rendered to Partnership Tenant or to any of the parties comprising Partnership
Tenant shall be deemed given or rendered to Partnership Tenant and to all such
parties and shall be binding upon Partnership Tenant and all such parties, (d) if
Partnership Tenant shall admit new partners, all of such new partners shall, by
their admission to Partnership Tenant, be deemed to have assumed performance of
all of the terms, covenants and conditions of this Lease on Tenant’s part to be
observed and performed, (e) Partnership Tenant shall give prompt notice to
Landlord of the admission of any partner or partners, and upon demand of Landlord,
shall cause each such partner to execute and deliver to Landlord an agreement
in form satisfactory to Landlord, wherein each such new partner shall assume
performance of all of the terms, covenants and conditions of this Lease on
Tenant’s part to be observed and performed (but neither Landlord’s failure to
request any such agreement nor the failure of any such new partner to execute
or deliver any such agreement to Landlord shall vitiate the provisions of 

 

30

 

subdivision (d) of this Section 7)
and (f) on each anniversary of the Commencement Date, Partnership Tenant
shall deliver to Landlord a list of all partners together with their current
residential addresses.

 

7.17         Notwithstanding anything to
the contrary contained in this Article 7, Tenant may allow one or
more not-for-profit companies or other tax exempt charitable organizations to
use and occupy up to five percent (5%) of the rentable area of the Premises on
a temporary basis (“Permitted Occupants”) for use only as executive and
general offices, without the consent of Landlord, provided that (A) Tenant
shall have given at least three (3) Business Days prior written notice to
Landlord of such intended use and occupancy along with the name of each such
Permitted Occupant, (B) no demising walls are installed in the Premises in
connection with such occupancy (and there is no separate reception area) so
that the Premises shall at all times give the appearance of being solely
occupied by Tenant, and (C) Tenant shall not charge a fee for the use or
occupancy of such space in any amount which would result in a net profit to
Tenant.  Such occupancy shall not be
subject to the other provisions of this Article 7, but all other
provisions of this Lease shall apply to such occupancy.  The Permitted Occupants shall have no rights
against Landlord under this Lease.

 

ARTICLE 8

 

Compliance with Laws

 

8.01         Tenant shall give prompt notice to
Landlord of any notice it receives of the violation of any Legal Requirement with
respect to the Premises or the use or occupation thereof.  Tenant shall, at Tenant’s expense,
comply with all present and future laws and requirements of any public
authorities in respect of the Premises or the use and occupation thereof, or
the abatement of any nuisance in, on or about the Premises; provided, however, that Tenant shall not
be obligated to make capital improvements in or to the Premises in order to
comply with Legal Requirements unless the need for same arises out of Tenant’s
specific use of the Premises other than mere general, administrative and
executive office use or any of the causes set forth in clauses (ii) through
(v) of the next succeeding sentence. 
Tenant shall also be responsible for the cost of compliance with all
present and future Legal Requirements in respect of the Real Property arising
from (i) Tenant’s manner of use of the Premises (other than arising out of
the mere use of the Premises as general, administrative and executive offices),
(ii) the manner of conduct of Tenant’s business or operation of its
installations, equipment or other property therein (other than arising out of
the mere use of the Premises as general, administrative and executive offices),
(iii) any cause or condition created by or at the instance of Tenant, (iv) any
Alterations, or (v) the breach of any of Tenant’s obligations hereunder,
whether or not such compliance requires work which is structural or
non-structural, ordinary or extraordinary, foreseen or unforeseen.  Tenant shall pay all the costs, expenses,
fines, penalties and damages which may be imposed upon Landlord or any Superior
Lessor by reason of or arising out of Tenant’s failure to fully and promptly
comply with and observe the provisions of this Section 8.01.  Without limiting the generality of, but
subject to, the foregoing, it is specifically agreed that Tenant shall comply
with all laws that require the installation, modification or maintenance within
the Premises of (a) any fire-rated partitions, gas, smoke, or fire
detector or alarm, any emergency signage or lighting system, or any sprinkler
or other system to extinguish fires or (b) any handicap facilities.  However, Tenant need not comply with any such
law or 

 

31

 

requirement of any public authority so long as Tenant shall be
contesting the validity thereof, or the applicability thereof to the Premises,
in accordance with Section 8.02 hereof.  Landlord, at its expense, shall comply with
all other such Legal Requirements as shall affect the Premises or access
thereto, but may similarly defer compliance so long as Landlord shall be
contesting the validity or applicability thereof, provided that the same shall
not adversely affect Tenant’s use of or access to the Premises.

 

8.02         Tenant, at its expense, after notice to
Landlord, may contest, by appropriate proceedings prosecuted diligently and in
good faith, the validity, or applicability to the Premises, of any law or
requirement of any public authority, provided
that (a) Landlord shall not be subject to criminal penalty or to
prosecution for a crime, or any other fine or charge, nor shall the Premises or
any part thereof or the Building or Land, or any part thereof, be subject to
being condemned, nor shall the Building or Land, or any part thereof, be
subjected to any lien (unless Tenant shall remove such lien by bonding or
otherwise) or encumbrance, by reason of non-compliance or otherwise by reason
of such contest; (b) Tenant shall indemnify Landlord against the cost of
such contest or non-compliance and against all liability for damages, interest,
penalties and expenses (including reasonable attorneys’ fees and expenses),
resulting from or incurred in connection with such contest or non-compliance; (c) such
non-compliance or contest shall not constitute or result in any violation of
any Superior Lease or Superior Mortgage, or if any such Superior Lease and/or
Superior Mortgage shall permit such non-compliance or contest on condition of
the taking of action or furnishing of security by Landlord, such action shall
be taken and such security shall be furnished at the expense of Tenant; (d) such
noncompliance or contest shall not prevent Landlord from obtaining any and all
permits and licenses in connection with the operation of the Building; and (e) Tenant
shall keep Landlord advised as to the status of such proceedings.  Without limiting the application of the
above, Landlord shall be deemed subject to prosecution for a crime if Landlord,
or its managing agent, or any officer, director, member, partner, shareholder
or employee of Landlord or its managing agent, as an individual, is charged
with a crime of any kind or degree whatever, whether by service of a summons or
otherwise, unless such charge is withdrawn before Landlord or its managing agent,
or such officer, director, member, partner, shareholder or employee of Landlord
or its managing agent (as the case may be) is required to plead or answer
thereto.

 

8.03         Tenant shall not place a load upon any
floor of the Premises which violates applicable law or the certificate of
occupancy of the Building or which exceeds the floor load per square foot which
such floor was designed to carry.  All
heavy material and/or equipment must be placed by Tenant, at Tenant’s expense,
so as to distribute the weight.  Business
machines and mechanical equipment shall be placed and maintained by Tenant, at
Tenant’s expense, in settings sufficient in Landlord’s reasonable judgment to
absorb and prevent vibration, noise and annoyance.

 

8.04         Tenant shall not cause or permit its
agents, licensees, sublessees, occupants, employees, contractors or invitees to
cause Hazardous Materials to be used, transported, stored, released, handled,
produced or installed in, on or from, the Premises or the Building except for
Hazardous Materials contained in typical office and cleaning products in
amounts which do not exceed those permitted pursuant to Legal
Requirements.  The term “Hazardous
Materials” shall, for the purposes hereof, mean any flammable explosives,
radioactive materials, hazardous wastes, hazardous and toxic substances, or
related materials, 

 

32

 

asbestos or any material containing asbestos, or any other substance or
material, as defined by any federal, state or local environmental law,
ordinance, rule or regulation including, without limitation, the
Comprehensive Environmental Response Compensation and Liability Act of 1980, as
amended, the Hazardous Materials Transportation Act, as amended, the Resource
Conservation and Recovery Act, as amended, and in the regulations adopted and
publications promulgated pursuant to each of the foregoing.  In the event of a breach of the provisions of
this Section 8.04, Landlord shall, in addition to all of its rights
and remedies under this Lease and pursuant to law, require Tenant to remove any
such Hazardous Materials from the Premises in the manner prescribed for such
removal by Legal Requirements.  The
provisions of this Section 8.04 shall survive the termination of
this Lease.  Except as provided in this Section 8.04,
Tenant shall not be liable for any Hazardous Material present on or about the
Premises or the Building, or the violation of any Legal Requirement relating to
any such Hazardous Material.

 

8.05         Tenant shall be responsible, during the
Term of this Lease, including the Renewal Term (as hereinafter defined), and
upon the Expiration Date or earlier termination hereof, for the removal of any
wiring and cabling installed by or on behalf of Tenant in the Premises and all
wiring and cabling installed by or on behalf of Tenant in the Building risers,
whether the same are inside or outside the Premises, to the extent any such
removal may be required by Legal Requirements. 
The provisions of this Section 8.05 shall survive the
termination of this Lease.

 

ARTICLE 9

 

Insurance

 

9.01         Tenant shall not violate, or permit its
agents, licensees, sublessees, occupants, employees, contractors or invitees to
violate, any condition imposed by any insurance policy then issued in respect
of the Real Property and shall not do, or permit anything to be done by its
agents, licensees, sublessees, occupants, employees, contractors or invitees,
or keep or permit anything to be kept in the Premises which would subject
Landlord, any Superior Lessor or any Superior Mortgagee to any liability or
responsibility for personal injury or death or property damage, or which would
increase any insurance rate in respect of the Real Property over the rate which
would otherwise then be in effect or which would result in insurance companies
of good standing refusing to insure the Real Property in amounts reasonably
satisfactory to Landlord, or which would result in the cancellation of or the
assertion of any defense by the insurer in whole or in part to claims under any
policy of insurance in respect of the Real Property; provided, however, that in no event shall the mere use of
the Premises for customary and ordinary office purposes, as opposed to the
manner of such use, constitute a breach by Tenant of the provisions of this Section 9.01.

 

9.02         If, by reason of any failure of Tenant to
comply with the provisions of this Lease, the premiums on Landlord’s insurance
on the Real Property shall be higher than they otherwise would be, and Landlord
shall notify Tenant of such fact and, if Tenant shall not within fifteen (15)
days thereafter, rectify such failure so as to prevent the imposition of such
increase in premiums, then Tenant shall reimburse Landlord, on demand and as
Additional Charges, for that part of such premiums attributable to such failure
on the part of Tenant.  A schedule or “make
up” of rates for the Real Property or the Premises, as the case may be, issued
by the New York 

 

33

 

Fire Insurance Rating Organization or other similar body making rates
for insurance for the Real Property or the Premises, as the case may be, shall
be conclusive evidence of the facts therein stated and of the several items and
charges in the insurance rate then applicable to the Real Property or the
Premises, as the case may be.

 

9.03         Tenant, at its expense, shall maintain at
all times during the term of this Lease (a) “all risk” or so-called “Special
Form” property insurance covering all present and future Tenant’s Property and
Alterations (including the initial Tenant’s Work) to a limit of not less than
the full replacement value thereof, such insurance to include a replacement
cost endorsement; (b) commercial general liability insurance, including
contractual liability, in respect of the Premises (including, without
limitation, all supplemental air-conditioning equipment located therein) and
the conduct or operation of business therein, with Landlord and its managing
agent, if any, and each Superior Lessor and Superior Mortgagee whose name and
address shall previously have been furnished to Tenant, as additional insureds,
with limits of not less than Five Million ($5,000,000) Dollars combined single
limit for bodily injury and property damage liability in any one occurrence
(which insurance may be provided in a combination of primary and excess
limits); (c) steam boiler or machinery insurance, if there is a boiler or
pressure object or similar equipment in the Premises, with Landlord and its
managing agent, if any, and each Superior Lessor and Superior Mortgagee whose
name and address shall previously have been furnished to Tenant, as additional
insureds, with limits of not less than Five Million ($5,000,000) Dollars; and (d) when
Alterations are in progress, the insurance specified in Section 11.05
hereof.  The limits of such insurance
shall not limit the liability of Tenant. 
Tenant shall deliver to Landlord and any additional insureds, at least
ten (10) days prior to the Commencement Date, such fully paid-for policies
or certificates of insurance, in form reasonably satisfactory to Landlord
issued by the insurance company or its authorized agent.  Tenant shall procure and pay for renewals of
such insurance from time to time before the expiration thereof, and Tenant
shall deliver to Landlord and any additional insureds such renewal policy or a
certificate thereof at least seven (7) days before the stated expiration
of any existing policy.  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 all such policies shall
contain a provision whereby the insurer shall endeavor to provide at least
thirty (30) days prior written notice to Landlord and any additional insureds
of any such cancellation (or ten (10) days prior written notice with
respect to a cancellation due to a failure to pay premiums).  The policies providing “all risk” or
so-called “Special Form” property insurance of leasehold improvements and
Tenant’s improvements and betterments shall name Landlord and Tenant as loss
payees as their interests may appear. 
The parties shall cooperate with each other in connection with the
collection of any insurance monies that may be due in the event of loss and
Tenant shall execute and deliver to Landlord such proofs of loss and other
instruments which may be reasonably required to recover any such insurance
monies.

 

9.04         Each party agrees to have included in
each of its insurance policies (insuring the Building and any other Landlord’s
property therein in case of Landlord, and insuring Tenant’s Property
(hereinafter defined) and leasehold improvements and Tenant’s improvements and
betterments in the case of Tenant, against loss, damage or destruction by fire
or other casualty) a waiver of the insurer’s right of subrogation against the
other party during the term of this Lease or, if such waiver should be
unobtainable or unenforceable, (i) an express 

 

34

 

agreement that such policy shall not be invalidated if the assured
waives the right of recovery against any party responsible for a casualty
covered by the policy before the casualty or (ii) any other form of
permission for the release of the other party. 
If such waiver, agreement or permission shall not be, or shall cease to
be, obtainable from either party’s then current insurance company, the insured
party shall so notify the other party promptly after learning thereof, and
shall use its best efforts to obtain the same from another insurance company
described in Section 9.03 hereof. 
Notwithstanding anything to the contrary in this Lease, each party
hereby releases the other party, with respect to any claim (including a claim
for negligence) which it might otherwise have against the other party, for
loss, damage or destruction with respect to its property occurring during the
term of this Lease to the extent to which it is, or is required to be, insured.

 

9.05         Landlord may from time to time require
that the amount of the insurance to be maintained by Tenant under Section 9.03
hereof be reasonably increased, so that the amount thereof adequately protects
Landlord’s interest;  provided, however, that the amount to
which such insurance requirements may be increased shall not exceed an amount
then customarily being required by landlords of comparable first-class office
buildings in midtown Manhattan; and provided further,
however, that Landlord shall not so increase such requirements prior
to the third (3rd) anniversary of the Commencement Date
hereof.

 

9.06         Landlord shall maintain in respect of the
Building at all times during the term of this Lease “all risk” or so-called “Special
Form” property insurance covering the Building and Landlord’s property for the
full replacement cost thereof.

 

ARTICLE 10

 

Rules and
Regulations

 

10.01       Tenant
and its employees and agents shall faithfully observe and comply with the rules and
regulations annexed hereto as Exhibit E,
and such reasonable changes therein (whether by modification, elimination or
addition) as Landlord at any time or times hereafter may make and communicate
to Tenant, which, in Landlord’s reasonable judgment, shall be necessary for the
reputation, safety, care and appearance of the Real Property, or the
preservation of good order therein, or the operation or maintenance of the Real
Property, and which do not unreasonably affect the conduct of Tenant’s business
in the Premises (such rules and regulations as changed from time to time
being herein called “Rules and Regulations”); provided, however,
that in case of any conflict or inconsistency between the provisions of this
Lease and any of the Rules and Regulations, the provisions of this Lease
shall control.

 

10.02       Nothing
in this Lease contained shall be construed to impose upon Landlord any duty or
obligation to enforce the Rules and Regulations against Tenant or any
other tenant or any employees or agents of Tenant or any other tenant, and
Landlord shall not be liable to Tenant for violation of the Rules and
Regulations by another tenant or its employees, agents, invitees or
licensees.  Landlord shall not
discriminate against Tenant in enforcing the Rules and Regulations.

 

35

 

10.03       Notwithstanding
anything to the contrary contained in Exhibit E,
the last sentence of Rule 13 therein shall not apply to Tenant’s Work or
Tenant’s initial move into the Premises.

 

ARTICLE 11

 

Alterations

 

11.01       Tenant
shall make no improvements, changes or alterations in or to the Premises (“Alterations”)
of any nature, other than painting, wall covering, carpeting, moveable
partitions, and other purely decorative work (“Decorative Work”) the
total cost of which does not exceed $50,000, without Landlord’s prior written
approval.  However, provided that Tenant shall be in
compliance with the applicable provisions of this Article 11,
Tenant may, at its sole expense, upon obtaining Landlord’s written approval,
which approval shall not be unreasonably withheld in all other instances,
undertake Alterations which are not Material Alterations.  A “Material Alteration” is an
Alteration which (a) is not limited to the interior of the Premises or
which affects the exterior (including the appearance) of the Building, (b) is
structural or affects the structure or strength of the Building, or (c) adversely
affects the usage or the proper functioning of the mechanical, electrical,
sanitary, heating, ventilating, air-conditioning or other service systems of
the Building.  Tenant may perform
Decorative Work the total cost of which does not exceed $50,000 without
Landlord’s consent, but Tenant shall give Landlord at least ten (10) days
prior notice of Tenant’s intent to perform such work.

 

11.02       (a)           Before proceeding with any Alteration (other than
Decorative Work), Tenant shall submit to Landlord, for Landlord’s approval,
final plans and specifications for the work to be done containing complete
information and dimensions necessary for the construction and finishing of the
Premises and for the engineering in connection therewith, which shall be in
detail sufficient to obtain all required building permits or notices and to
show compliance with Legal Requirements and shall be signed and sealed by an
architect and, if applicable, engineer(s) licensed in the State of New
York (“Tenant’s Plans”).  Tenant
shall not proceed with such work until it obtains Landlord’s written approval
of such plans and specifications, which approval shall not be unreasonably
withheld or delayed.

 

(b)           With respect to any Alteration (other
than a Material Alteration), Landlord shall notify Tenant of Landlord’s
approval or disapproval of the same within fifteen (15) days after submission
by Tenant of complete plans and specifications therefor (or any required
revisions thereto), together with a statement specifying in reasonable detail
the reasons for such disapproval and itemizing the portion(s) of the plans
which have not been approved; however, if with respect to such Alterations
Landlord fails to respond to Tenant’s request for such approval within said
fifteen (15) day period, then provided Tenant sends Landlord a second (2nd)
notice stating, among other things, the following in bold capital letters:  “IF LANDLORD FAILS TO RESPOND TO THIS REQUEST
FOR APPROVAL OF ALTERATIONS WITHIN FIVE (5) BUSINESS DAYS, THEN LANDLORD’S
APPROVAL THEREOF AND OF THE PLANS AND SPECIFICATIONS THEREFOR SHALL BE DEEMED
GRANTED IN ACCORDANCE WITH SECTION 11.02(b) OF THE LEASE,” and if
Landlord continues to fail to respond to the request after the expiration of
such additional five (5) Business Day period, Landlord’s consent to such
Alteration shall be deemed to have been given. 
Notwithstanding 

 

36

 

anything to the
contrary contained herein, the five (5) Business Day period referred to in
the preceding sentence shall be extended to eleven (11) Business Days if
Landlord notifies Tenant that Landlord has sent Tenant’s plans and specifications
to a third party consultant to review.

 

(c)           Tenant shall pay to Landlord upon demand,
as Additional Charges, Landlord’s reasonable out of pocket costs and expenses
(including, without limitation, the reasonable fees of any architect or
engineer employed by Landlord or any Superior Lessor or Superior Mortgagee for
such purpose) for (i) reviewing Tenant’ Plans and (ii) inspecting the
Alterations to determine whether the same are being performed in accordance
with (x) Tenant’s Plans, as approved and (y) all Legal Requirements.

 

(d)           Tenant agrees that any review or approval
by Landlord of any plans and/or specifications with respect to any Alterations
is solely for Landlord’s benefit, and without any representation or warranty
whatsoever to Tenant with respect to the adequacy, correctness or efficiency
thereof or otherwise.

 

11.03       Intentionally
omitted.

 

11.04       Tenant,
in connection with any Alterations, shall fully and promptly comply with and
observe the Alterations Rules and Regulations set forth as Exhibit F hereto and made a part
hereof.

 

11.05       Tenant,
at its expense, shall obtain (and furnish true and complete copies to Landlord
of) all necessary governmental permits and certificates for the commencement
and prosecution of Alterations and for final approval thereof upon completion,
and shall cause Alterations to be performed in compliance therewith, with all
applicable Legal Requirements, with all Insurance Requirements and with Tenant’s
Plans (as approved by Landlord, subject to minor adjustments thereto
customarily made in the field). 
Alterations shall be diligently performed in a good and workmanlike
manner, using new materials and equipment at least equal in quality and class
to the better of (i) the original installations of the Building or (ii) the
then standards for the Building established by Landlord.  Alterations shall be performed by contractors
first approved by Landlord, which approval shall not be unreasonably withheld
or delayed; provided, however, that any Alterations in or to the
roof (except for Tenant’s Installations pursuant to Article 40
hereof, for which Tenant may select contractors subject to Landlord’s
reasonable approval), life safety systems or elevators of the Building shall be
performed only by the contractor(s) designated by Landlord.  Alterations shall be performed in such manner
as not to unreasonably interfere with or delay and as not to impose any
additional out-of-pocket expense upon Landlord in the maintenance, repair or
operation of the Building; and if any such additional out-of-pocket expense
shall be incurred by Landlord as a result of Tenant’s performance of any
Alterations, Tenant shall pay such additional expense within twenty (20) days
after demand as Additional Charges. 
Throughout the performance of Alterations, Tenant, at its expense, shall
carry, or cause to be carried, worker’s compensation insurance in statutory
limits, all risk “Builders Risk” insurance and general liability insurance,
with completed operation endorsement, for any occurrence in or about the Real
Property, under which Landlord and its agent and any Superior Lessor and
Superior Mortgagee whose name and address shall previously have been furnished
to Tenant shall be named as parties insured, in the limits set forth in Section D
of Exhibit F annexed hereto, with
insurers reasonably satisfactory to Landlord. 

 

37

 

Tenant shall furnish Landlord with reasonably satisfactory evidence
that such insurance is in effect at or before the commencement of Alterations
and, on request, at reasonable intervals thereafter during the continuance of
Alterations.

 

11.06       Tenant
agrees that the exercise of its rights pursuant to the provisions of this Article 11
or of any other provisions of this Lease or the Exhibits hereto shall not be
done in a manner which would violate Landlord’s union contracts affecting the
Real Property, or create any work stoppage, picketing, labor disruption or
dispute or disharmony or any interference (beyond a de minimis
extent) with the business of Landlord or any tenant or occupant of the
Building.  Tenant shall immediately stop
work or other activity if Landlord notifies Tenant that continuing such work or
activity would violate Landlord’s union contracts affecting the Real Property,
or create any work stoppage, picketing, labor disruption or dispute or
disharmony or any interference (beyond a de minimis
extent) with the business of Landlord or any tenant or occupant of the
Building.  Landlord agrees that it shall
not discriminate as against Tenant in enforcing the foregoing prohibition
against interfering with the business of Landlord or other tenants in the
Building.

 

11.07       Tenant,
at its expense, and with diligence and dispatch, shall procure the cancellation
or discharge of all notices of violation arising from or otherwise connected
with Alterations, or any other work, labor, services or materials done for or
supplied to Tenant, or any person claiming through or under Tenant (other than
by Landlord or its affiliates, agents, representatives or contractors), which
shall be issued by the Department of Buildings of the City of New York or any
other public authority having or asserting jurisdiction.  Tenant shall defend, indemnify and save
harmless Landlord from and against any and all mechanic’s and other liens and
encumbrances filed in connection with Alterations, or any other work, labor,
services or materials done for or supplied to Tenant, or any person claiming
through or under Tenant, including, without limitation, security interests in
any materials, fixtures or articles so installed in and constituting part of
the Premises and against all costs, expenses and liabilities incurred in
connection with any such lien or encumbrance or any action or proceeding
brought thereon.  Tenant, at its expense,
shall procure the satisfaction or discharge of record of all such liens and
encumbrances within twenty (20) days after Tenant shall have received notice of
the filing thereof.  However, nothing
herein contained shall prevent Tenant from contesting, in good faith and at its
own expense, any notice of violation, provided
that Tenant shall comply with the provisions of Section 8.02
hereof.

 

11.08       Tenant
will promptly upon the completion of an Alteration deliver to Landlord “as-built”
drawings and CAD files on diskette and by e-mail in AutoCAD.DWG format or
compatible DXF format, as well as PDF files on diskette and by e-mail in JPG or
TIFF format, showing the exact nature and location of any Alterations Tenant
has performed or caused to be performed in the Premises, and (a) if any
Alterations by Tenant are then proposed or in progress, Tenant’s drawings and
specifications, if any, for such Alterations and (b) if any Alterations by
Landlord for Tenant were performed or are then proposed or in progress, the “as-built”
drawings, if any, or the drawings and specifications, if any, as the case may
be, for such Alterations, in Tenant’s possession.  Any files to be delivered to Landlord by
e-mail as set forth in the preceding sentence shall be sent to:  Tenant.Plan@brookfieldproperties.com.

 

38

 

11.09       All
fixtures and equipment installed or used by Tenant in the Premises shall be
fully paid for by Tenant in cash and shall not be subject to conditional bills
of sale, chattel mortgage or other title retention agreements.

 

11.10       Tenant
shall keep records of Tenant’s Alterations costing in excess of Fifty Thousand
and 00/100 Dollars ($50,000.00) and of the cost thereof.  Tenant shall, within forty-five (45) days
after demand by Landlord, furnish to Landlord copies of such records and cost
if Landlord shall require same in connection with any proceeding to reduce the
assessed valuation of the Real Property, or in connection with any proceeding
instituted pursuant to Article 8 hereof or for any other reasonable
purpose.

 

11.11       Subject
to Landlord’s reasonable approval of Tenant’s plans and specifications
therefor, and Tenant’s compliance with the other provisions of this Article 11,
Landlord’s consent shall not be unreasonably withheld with respect to Tenant’s
construction of (a) shower room(s) in the Premises containing up to
two (2) showers per full floor of the Premises, and (b) high density
file rooms and, if and when applicable, interconnecting stairs between two
contiguous floors comprising the Premises.

 

11.12       Landlord
shall reasonably cooperate, at no cost to Landlord, with Tenant with respect to
Tenant’s applications for any governmental approvals and certificates required
in connection with any Alterations permitted to be constructed hereunder
(including, without limitation, the execution of such applications by
Landlord).

 

ARTICLE 12

 

Landlord’s and
Tenant’s Property

 

12.01       All
fixtures, equipment, improvements and appurtenances attached to or built into
the Premises at the commencement of or during the term of this Lease, whether
or not by or at the expense of Tenant, shall be and remain a part of the
Premises, shall, upon the expiration or sooner termination of this Lease, be
deemed the property of Landlord and shall not be removed by Tenant, except as
provided in Section 12.02. 
Further, any carpeting or other personal property in the Premises on the
Commencement Date, unless installed and paid for by Tenant, shall be and shall
remain Landlord’s property and shall not be removed by Tenant.  Notwithstanding the foregoing provisions,
upon notice to Tenant no later than one hundred eighty (180) days prior to the
Expiration Date or upon reasonable notice with respect to such earlier date
upon which the term of this Lease shall expire, Landlord may require Tenant to
remove all or part of the foregoing fixtures, equipment, improvements and
appurtenances attached to or built into the Premises during the term of this
Lease by identifying to Tenant in writing, any Alterations that will require
restoration upon the expiration or sooner termination of this Lease; provided, however, that (i) Tenant shall not be
obligated to remove any such fixtures, equipment, improvements and
appurtenances installed prior to the date of this Lease, and (ii) Tenant’s
obligation to remove fixtures, equipment, improvements and appurtenances
installed after the date of this Lease shall be limited to items that are not
of the type, quality or quantity of improvement that is customarily found in a
standard office installation in first class office buildings in the midtown
area of Manhattan in the City of New York, including, but not limited to,
kitchens (which shall not included pantries), vaults, private restrooms, shower
rooms 

 

39

 

and shower stalls, raised or reinforced flooring, staircases or
supplemental HVAC equipment (except that Tenant shall not be required to remove
ceiling hung supplemental air-conditioning units having a capacity of five (5) tons
or less).  Tenant shall remove any such
items required by Landlord pursuant to the preceding sentence from the Premises
prior to the expiration of this Lease at Tenant’s expense.  Upon such removal Tenant shall immediately
and at its expense, repair and restore the Premises to the condition existing
prior to installation and repair any damage to the Premises or the Building due
to such removal.  At Tenant’s written
request, at the time of Landlord’s consent to Tenant’s Alterations, Landlord
will identify any Alterations specified in Tenant’s Plans that will require
restoration (subject to the limitations contained in this Section 12.01)
upon the expiration or sooner termination of this Lease.

 

12.02       All
movable partitions, furniture systems, special cabinet work, business and trade
fixtures, machinery and equipment, communications equipment (including, without
limitation, telephone system, security system and wiring) and office equipment,
whether or not attached to or built into the Premises, which are installed in
the Premises by or for the account of Tenant without expense to Landlord and
can be removed without structural damage to the Building, and all furniture,
furnishings and other articles of movable personal property owned by Tenant and
located in the Premises (collectively, “Tenant’s Property”) shall be and
shall remain the property of Tenant and may be removed by Tenant at any time
during the term of this Lease; provided
that if any of Tenant’s Property is removed, Tenant shall repair or pay the
cost of repairing any damage to the Premises or to the Building resulting from
the installation and/or removal thereof. 
Any equipment or other property for which Landlord shall have granted
any allowance or credit to Tenant shall not be deemed to have been installed by
or for the account of Tenant without expense to Landlord, shall not be
considered Tenant’s Property and shall be deemed the property of Landlord.

 

12.03       At
or before the Expiration Date of this Lease (or within fifteen (15) days after
any earlier termination of this Lease) Tenant, at its expense, shall remove
from the Premises all of Tenant’s furniture, equipment and other moveable
personal property not affixed or attached to the Premises (except for such
items thereof as Landlord shall have expressly permitted to remain, which
property shall become the property of Landlord), and Tenant shall repair any
damage to the Premises or the Building resulting from any installation and/or
removal of Tenant’s Property.

 

12.04       Any
other items of Tenant’s Property which shall remain in the Premises after the
Expiration Date of this Lease, or within fifteen (15) days following an earlier
termination date, may at the option of Landlord, be deemed to have been
abandoned, and in such case such items may be retained by Landlord as its
property or disposed of by Landlord, without accountability, in such manner as
Landlord shall determine, at Tenant’s expense.

 

ARTICLE 13

 

Repairs and
Maintenance

 

13.01       Tenant
shall, at its expense, throughout the term of this Lease, take good care of and
maintain in good order and condition the Premises and the fixtures and
improvements therein including, without limitation, the property which is
deemed Landlord’s 

 

40

 

pursuant to Section 12.01 hereof and Tenant’s Property,
except as otherwise expressly provided in the last sentence of this Section 13.01,
and except for ordinary wear and tear and damage from casualty or
condemnation.  Tenant shall be
responsible for the cost of all repairs, interior and exterior, structural and
non-structural, ordinary and extraordinary, foreseen or unforeseen, in and to
the Premises and the Building and the facilities and systems thereof, the need
for which arises out of (a) the performance or existence of Alterations, (b) the
installation, use or operation of the property which is deemed Landlord’s,
pursuant to Sections 12.01 and 12.02 hereof and Tenant’s Property, (c) the
moving of the property which is deemed Landlord’s pursuant to Sections 12.01
and 12.02 hereof and Tenant’s Property in or out of the Building, (d) the
wrongful act or neglect of Tenant or any of its subtenants or its or their
employees, agents, contractors or invitees or (e) design flaws in any of
Tenant’s Plans regardless of the fact that such Tenant’s Plans may have been
approved by Landlord.  Tenant, at its expense,
shall promptly replace all damaged or broken doors and interior glass (subject
to reasonable wear and tear) in and about the Premises, including, without
limitation, entrance doors, and shall be responsible for all repairs,
maintenance and replacement of wall and floor coverings in the Premises and for
all the repair, maintenance and replacement of all horizontal portions of the
systems and facilities of the Building within and serving the Premises,
including without limitation the sanitary and electrical fixtures and equipment
therein (but in any event excluding the high pressured duct work serving the
perimeter induction system).  All repairs
in or to the Premises for which Tenant is responsible shall be promptly
performed by Tenant in a manner which will not interfere with the use of the
Building by other occupants; provided,
however, any repairs in and to
the Building and the facilities and systems thereof for which Tenant is
responsible shall be performed by Landlord at Tenant’s expense, which expense
shall be commercially reasonable.  The
exterior walls of the Building, the portions of any window sills outside the
windows (and the solar film, if any, attached to the window glass), and the
windows are not part of the Premises and Landlord reserves all rights to such
parts of the Building.  Notwithstanding
the foregoing provisions of this Section 13.01, Tenant shall not be
responsible for repairs to or replacements of 
any structural elements of the Building, except to the extent the need
for such repairs or replacements arises from the matters set forth in clauses
(a), (b), (c), (d) or (e) of the second sentence of this Section 13.01
or from the negligence or willful misconduct of Tenant, its employees, agents
or contractors.

 

13.02       Tenant
shall give Landlord prompt notice of any defective condition in any plumbing,
heating, air-conditioning or ventilation system or electrical lines located in,
servicing or passing through the Premises of which it has actual knowledge.  Following such notice, Landlord shall remedy
the conditions, but at the expense of Tenant if Tenant is responsible for same
under the provisions of this Article 13.

 

13.03       Except
as otherwise expressly provided in this Lease, Landlord shall have no liability
to Tenant, nor shall Tenant’s covenants and obligations under this Lease be
reduced or abated in any manner whatsoever, by reason of any inconvenience,
annoyance, interruption or injury arising from Landlord’s making any repairs or
changes which Landlord is required or permitted by this Lease, or required by
law, to make in or to the fixtures, equipment or appurtenances of the Building
or the Premises;  provided, however, that Landlord shall use
reasonable efforts to the extent practicable to make such repairs and changes
at such times and in such manner as to minimize interference with the conduct
of Tenant’s business in the Premises, 

 

41

 

provided that Landlord shall not be required to perform any such work
on an overtime or premium-pay basis.

 

13.04       Landlord
shall, at its expense, but subject to the provisions of this Lease, keep and
maintain the public portions of the Building, the structural portions of the
Building, the windows (including the solar film, if any, attached to the window
glass, to the extent that the same shall bubble without the fault of Tenant),
and the Building’s plumbing, heating, air-conditioning, ventilation and
electrical systems and facilities, to the extent that such systems and
facilities affect the Premises, in good working order, and shall operate the
Building as a first-class office building.

 

ARTICLE 14

 

Electricity

 

14.01       Subject
to the provisions of this Article 14, Landlord shall furnish the
electricity that Tenant shall reasonably require in the Premises for Tenant’s
normal business purposes up to six (6) watts demand load per rentable
square foot of the Premises (exclusive of the base Building systems).  The amount to be paid by Tenant for
electricity consumed shall be determined by a meter or meters and related
equipment installed (or, if existing, retrofitted) by Landlord at Tenant’s
expense and billed separately according to each meter.  Each meter shall be maintained by Tenant and
be recalibrated as may be necessary by Tenant at its expense.  Bills for electricity consumed by Tenant,
which Tenant hereby agrees to pay, shall be rendered by Landlord or the meter
company to Tenant at such time as Landlord may elect, and shall be payable as
an Additional Charge, within thirty (30) days after rendition of any such
bill.  Tenant shall make no material
changes or additions to the electrical equipment, wiring and/or appliances in
the Premises (beyond that on Tenant’s Plans, as approved by Landlord, if any,
for initial occupancy) without submission of plans for the prior written
consent of Landlord.

 

14.02       The
amount to be charged to Tenant by Landlord per “KW” and “KWHR” pursuant to this
Article for electricity consumed within the Premises, whether shown on the
meters measuring Tenant’s consumption of electricity or determined by survey as
herein elsewhere provided, shall be 103% of the amount at which Landlord from
time to time purchases each KW and KWHR of electricity for the same period from
the utility company, which amount (as adjusted from time to time, “Landlord’s
Rate”) shall be determined by dividing the cost established by said utility
company (averaged separately for KWs and KWHRs) during each respective billing
period by the number of KWs and KWHRs consumed by the Building appearing on the
utility company invoice for such period. 
In no event shall the Additional Charge made to Tenant pursuant to this Article 14
for submetered electricity supplied to the Premises (or the charge pursuant to Section 14.04
hereof in the event electricity is supplied on a rent inclusion basis) be less
than Landlord’s actual cost therefor.  If
(x) Tenant shall occupy the Premises for the construction of Tenant’s Work
and consume electricity prior to the installation of meters in 

 

42

 

the Premises, then Tenant agrees to pay Landlord the sum of $1.50 per
rentable square foot per annum for electricity pursuant to Section 14.04
hereof until such time as said meters are installed or until Tenant shall
commence the conduct of business in the Premises, and (y) Tenant shall
occupy the Premises for business purposes (including, without limitation, the
testing or operation of its computers) and consume electricity prior to the
installation of meters in the Premises, then Tenant agrees to pay Landlord the
sum of $3.25 per rentable square foot per annum for electricity pursuant to Section 14.04
hereof until such time as said meters are installed, provided that such amounts
per annum are subject to increase based on increases in Landlord’s cost of
electricity.

 

14.03       In
the event that the “submetering” of electricity in the Building is hereafter
prohibited by any law hereafter enacted, or by any order or ruling of the
Public Service Commission of the State of New York, or by any judicial decision
of any appropriate court, at the request of Landlord, Tenant shall, unless
Tenant elects to require Landlord to provide electricity pursuant to Section 14.04
hereof, apply within fifteen (15) days to the appropriate public utility
company servicing the Building for direct electric service and bear all costs
and expenses necessary to comply with all rules and regulations of such
public utility company pertinent thereto, and Landlord and/or the meter company
theretofore designated by Landlord shall be relieved of any further obligation
to furnish electricity to Tenant pursuant to this Article 14,
except Landlord shall permit its wires, conduits and electrical equipment, to
the extent available and safely capable, to be used for such purpose.  Any additional riser or risers or feeders or
service, to the extent available and reasonably feasible, to supply Tenant’s
electrical requirements will be installed by Landlord, at the sole cost and
expense of Tenant, if in Landlord’s reasonable 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 unreasonably 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 at reasonably competitive
rates all other equipment proper and necessary in connection therewith, subject
to the aforesaid terms and conditions, and subject to Landlord’s prior approval
of Tenant’s plans therefor which shall not be unreasonably withheld or delayed.

 

14.04       (a)           If (i) submetering of electricity is prohibited
as described in Section 14.03 hereof and Tenant does not elect to
obtain electricity from the public utility company, or (ii) if and to the
extent that the Premises or any portion of Tenant’s electric consumption (KW
and KWHR) is measured on a meter that also measures the electric consumption of
another tenant occupying space in the Building, then in any such case Landlord
shall furnish electricity to Tenant on the basis that Tenant’s consumption (KW
and KWHR) of electricity shall be measured by electric survey made from time to
time by Landlord’s consultant.  Pending
an initial survey made by Landlord’s consultant, effective as of the date when
Landlord has commenced furnishing electricity to Tenant pursuant to this Section 14.04
(with suitable proration for any period of less than a full calendar month),
the Fixed Rent specified in Section 1.04 hereof shall be increased
by an amount (the “Initial Charge”) which shall be at the rate of $3.25
per rentable square foot per annum, provided that such amount per annum is
subject to increase based on increases in Landlord’s cost of electricity, or in
the event the reason is (i) above, then, if there has been twelve (12)
months charges of submetered electric, an amount equal to the average of the
prior twelve (12) months charges for submetered electric, but in any case, with
at least thirty (30) days prior written notice of any such increase (provided, however, that the effective date of such
adjustment shall be the date such increased use commenced, as determined by the
electrical survey).  After completion of
the electrical survey made by Landlord’s consultant of Tenant’s consumption (KW
and KWHR) of electricity, said consultant shall apply 103% of Landlord’s Rate
as provided in Section 14.02 hereof to arrive at an amount (the “Actual
Charge”) and the Fixed Rent shall be appropriately adjusted retroactively
to reflect 

 

43

 

any amount by which the Actual Charge exceeds the Initial Charge.  Tenant shall pay that portion of such amount
which would have been paid to the date of the determination of the Actual
Charge within thirty (30) days after being billed therefor.  Thereafter and from time to time during the
term of the Lease, Landlord may cause additional surveys of Tenant’s electrical
usage to be made by Landlord’s consultant. 
Tenant from time to time may request Landlord to have a survey made of
Tenant’s electrical usage, and the fees of Landlord’s consultant making such
survey(s) at Tenant’s request shall be paid by Tenant.  In the event any of the foregoing surveys
shall determine that there has been an increase or decrease in Tenant’s usage
of electricity, then effective as of the date of such change in usage the then
current Actual Charge to Tenant by reason of the furnishing of electricity to
Tenant, as same may have been previously increased pursuant to the terms hereof,
shall be increased or decreased (subject to the last sentence of Section 14.04(b) hereof)
in accordance with such survey determination with appropriate credit allowed to
Tenant in the event of a decrease in usage and in the event of an increase in
such usage Tenant shall pay the increased amount therefor from the date of such
change in usage to the date of such survey determination within thirty (30)
days after being billed therefor and thereafter as part of the increased
monthly charge for electricity by reason of such survey determination.

 

(b)           In the event from time to time after the
initial survey or a subsequent survey any additional electrically operated
equipment is installed in the Premises by Tenant, or if Tenant shall increase
its hours of operation, or if the charges by the utility company supplying
electric current to Landlord are increased or decreased after the date thereof,
then and in any of such events the monthly charge shall be increased or
decreased accordingly on account of such additional electricity consumed by
such newly installed electrically operated equipment and/or increase in Tenant’s
hours of operation and/or on account of such increased or decreased Landlord’s
Rate.  The amount of such increase or
decrease in the monthly charge shall be determined in the first instance by
Landlord’s consultant.  In addition, the
monthly rate will be increased or decreased quarterly in accordance with
calculations by Landlord’s consultant to reflect changes in the fuel adjustment
component of the utility company charge. 
Tenant shall pay the amount of any increase in the monthly charge
retroactively (subject to Tenant’s right to contest in the same manner as in Section 14.06
hereof provided) from the date of the installation of all newly installed
electrically operated equipment and/or from the date when the increased charges
to Landlord from the utility company become effective and/or from the date of
any increase in Tenant’s hours of operation, as the case may be, such amount to
be paid promptly upon billing therefor by Landlord.  Notwithstanding anything to the contrary
contained in Section 14.04, in no event shall the Actual Charge be
decreased to an amount which is less than the Initial Charge per rentable
square foot per annum.

 

14.05       All
survey determinations (including the first survey made by Landlord’s
consultant) shall be subject to contest by Tenant as provided in Section 14.06
hereof.  Surveys made of Tenant’s
electrical consumption shall be based upon the use of electricity between the
hours of 8:00 a.m. to 6:00 p.m., Mondays through Fridays, on
Saturdays and such other days and hours when Tenant (or Tenant’s agents,
employees and/or contractors) uses electricity for lighting and for the
operation of the machinery, appliances and equipment used by Tenant in the
Premises; and if cleaning services are provided by Landlord, such survey shall
include Landlord’s normal cleaning hours of five (5) hours per day (which
shall not be subject to 

 

44

 

reduction) for lighting within the Premises and for electrical
equipment normally used for such cleaning.

 

14.06       In
the event electricity shall be furnished to Tenant as contemplated in Section 14.04
hereof, then Tenant, within sixty (60) days after notification from Landlord of
the determination of Landlord’s utility consultant (in accordance with the
provisions of Section 14.04 hereof), shall have the right to
contest, at Tenant’s cost and expense, such determination by submitting to
Landlord a like survey determination prepared by a utility consultant of Tenant’s
selection, which will highlight the differences between Landlord’s survey and
Tenant’s survey.  If the determination of
Tenant’s consultant does not vary from the determination of Landlord’s consultant
by more than five percent (5%), then Landlord’s determination shall be deemed
binding and conclusive.  If the
determination of Tenant’s consultant varies by more than five percent (5%) and
if Landlord’s consultant and Tenant’s consultant shall be unable to reach
agreement within thirty (30) days, then such two consultants shall designate a
third consultant to make the determination, and the determination of such third
consultant shall be binding and conclusive on both Landlord and Tenant.  If the determination of such third consultant
shall substantially confirm the findings of Landlord’s consultant (i.e.,
within five percent (5%)), then Tenant shall pay the cost of such third
consultant.  If such third consultant
shall substantially confirm the determination of Tenant’s consultant (i.e.,
within five percent (5%)), then Landlord shall pay the cost of such third
consultant.  If such third consultant
shall make a determination substantially different from that of both Landlord’s
and Tenant’s consultants (or is within five percent (5%) of both such
determinations), then the cost of such third consultant shall be borne equally
by Landlord and Tenant.  In the event
that Landlord’s consultant and Tenant’s consultant shall be unable to agree
upon the designation of a third consultant within thirty (30) days after Tenant’s
consultant shall have made its determination (different from that of Landlord’s
consultant), then either party shall have the right to request The Real Estate
Board of New York, Inc. (or, upon their failure or refusal to act, the
American Arbitration Association in the City of New York) to designate a third
consultant whose decision shall be conclusive and binding upon the parties, and
the costs of such third consultant shall be borne as hereinbefore provided in
the case of a third consultant designated by the Landlord’s and Tenant’s
consultants.  Pending the resolution of
any contest pursuant to the terms hereof, Tenant shall pay the Additional
Charge on account of electricity determined by Landlord’s consultant, and upon
the resolution of such contest, appropriate adjustment in accordance with such
resolution of such Additional Charge payable by Tenant on account of
electricity shall be made retroactive to the date of the determination of Landlord’s
consultant.

 

14.07       If
pursuant to any law, ruling, order or regulation the amount which Landlord is
permitted to charge to Tenant for the purchase of electricity pursuant to this Article 14
shall be reduced below that which Landlord would otherwise be entitled to
charge Tenant hereunder, then Tenant shall pay the difference between such
amounts to Landlord as an Additional Charge within thirty (30) days after being
billed therefor by Landlord, as compensation for the use of the Building’s
electric distribution system.

 

14.08       Tenant
covenants and agrees that at all times its installations and use of electricity
shall never exceed a demand load of six (6) watts per square foot of
rentable area. If (i) in Landlord’s reasonable opinion Tenant’s installation
overloads the electrical vaults/feeders or any riser(s) and/or switch(es)
in or servicing the Building or (ii) Tenant requests additional 

 

45

 

power in addition to that which is permitted hereunder, then if and to
the extent allocated power is available in the Building for use by Tenant
without resulting in allocation to Tenant of a disproportionate amount of
allocated power, Landlord shall, at Tenant’s cost and expense, provide and
install in conformity with law any additional riser or risers and/or any and
all switch or switches to connect additional power to the Premises, and Tenant
agrees to pay Landlord its then-established connection charge for each
additional amp of power or portion hereof so supplied to the Premises, together
with the cost of installing such additional risers, switches and related
equipment.

 

14.09       Landlord
shall not in any way be liable or responsible to Tenant for any loss, damage or
expense which Tenant may sustain or incur if (i) the supply of electric
energy to the Premises is temporarily interrupted or (ii) the quantity or
character of electric service is changed or is no longer available or suitable
for Tenant’s requirements, except to the extent resulting from Landlord’s willful
misconduct or gross negligence.

 

14.10       At
Landlord’s option, Landlord shall furnish and install all replacement lighting,
tubes, lamps, bulbs and ballasts required in the Premises; and in such event,
Tenant shall pay to Landlord or its designated contractor upon demand the then
established reasonable charges therefor of Landlord or its designated
contractor, as the case may be.

 

ARTICLE 15

 

Landlord’s
Services

 

15.01       (a)           Landlord will provide after the term of this Lease
shall have commenced, provided Tenant
shall have taken occupancy of the Premises for the conduct of its business, the
following services to the Premises in the manner hereinafter more particularly
set forth:  (i) heat, ventilation
and air conditioning; (ii) elevator service; (iii) domestic cold
water; and (iv) cleaning.

 

(b)           As used herein, the terms “Business
Hours” shall mean the hours between 8:00 a.m. and 6:00 p.m., and “Business
Days” shall mean all days except Saturdays, Sundays, New Year’s Day,
President’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving, the
day following Thanksgiving, and Christmas, and any other days which shall be
either (i) observed by both the federal and the state governments as legal
holidays or (ii) designated as a holiday by the applicable Building
Service Union Employee Service contract or by the applicable Operating
Engineers contract.

 

15.02       (a)           Landlord, during Business Hours on Business Days,
shall furnish, heat, ventilation and air-conditioning to the Premises (except
as otherwise provided in this Lease and except for any special requirements of
Tenant arising from its particular use of the Premises) in accordance with the
specifications set forth in Exhibit G
attached hereto (subject to the design criteria, including occupancy and
connected electric load design criteria, set forth therein). Landlord shall not
be liable for the failure of the air conditioning system if such failure
results from the occupancy of the Premises by more than an average of one
person for each one hundred (100) square feet in any separate room or area or
if Tenant installs and operates machines,

 

46

 

incandescent lighting and appliances, the total connected electrical
load of which exceeds five (5) watts per square foot of usable area in the
separate room or area;

 

(b)           (i)            Landlord
shall provide passenger elevator service to each floor of the Premises at all
times during Business Hours of Business Days and at least one of such passenger
elevators shall be subject to call at all other times.  Landlord shall provide at no additional
charge freight elevator service to the Premises and use of the Building’s
loading dock on a first come-first served basis (i.e., no advance scheduling) during Business Hours of
Business Days.  Freight elevator service
and use of the Building’s loading dock shall also be provided to the Premises
on a reserved basis at all other times, upon the payment of Landlord’s then
established charges therefor (which are currently $69.89 per hour for the freight
elevator and $67.50 per hour for the loading dock) which shall be Additional
Charges hereunder.  The use of all
elevators and the loading dock shall be on a non-exclusive basis and shall be
subject to the Rules and Regulations. 
Notwithstanding the foregoing, and notwithstanding anything to the
contrary contained in the Rules and Regulations, Tenant shall be entitled
to the free and exclusive use of one (1) freight elevator and the free use
of the loading dock for twenty-four (24) non-Business Hours to facilitate
Tenant’s Work and/or Tenant’s initial move into the Premises, provided that
such overtime service must be reserved by Tenant in advance, and provided
further that such overtime service must be reserved in blocks of at least four (4) consecutive
hours.

 

(ii)           At any time or times all or any of the
elevators in the Building may, at the option of Landlord, be manual and/or
automatic elevators, and Landlord shall be under no obligation to furnish an
elevator operator for any automatic elevator. 
If Landlord shall at any time or times furnish any elevator operator for
any automatic elevator, Landlord may discontinue furnishing such elevator
operator without any diminution, reduction or abatement of rent.

 

(c)           Landlord shall furnish reasonable
quantities of hot and cold water to the base Building lavatories on the floor(s) on
which the Premises are located and, if there shall be a “wet pipe” in the
Premises, cold water for lavatory and drinking and office cleaning purposes in
the Premises.  If Tenant shall require
water for any other purpose (including, without limitation for the installation
of showers pursuant to Section 11.11 hereof), Landlord need only
furnish cold water at the Building core riser through a capped outlet located
on the floor of the Premises, and the cost of heating such water as well as
piping and supplying such water to the Premises shall be paid by Tenant.  In such event, Landlord may install and
maintain, at Tenant’s expense, meters to measure Tenant’s consumption of such
cold water and/or hot water for such other purposes.  Tenant shall pay to Landlord at Landlord’s
standard charges for the quantities of cold water and hot water shown on such
meters (including Landlord’s charge for the production of such hot water, if
Landlord shall have produced such hot water) on demand.

 

(d)           (i)            Except
as otherwise provided below, Landlord shall cause, the Premises, including the
exterior and the interior of the Building exterior windows thereof, to be
cleaned in accordance with the provisions of Exhibit G
attached hereto and made a part hereof. 
Tenant shall pay to Landlord on demand the costs incurred by Landlord
for (x) extra cleaning work in the Premises required because of (i) misuse
or neglect on the part of Tenant or its subtenants or its or their employees or
visitors, (ii) interior glass partitions or unusual quantity of interior
glass surfaces (if cleaning thereof is requested by Tenant), and (iii) non-building

 

47

 

standard materials or finishes installed by Tenant or at its request
(if cleaning thereof is requested by Tenant), (y) removal from the
Premises and the Building of any refuse and rubbish of Tenant in excess of that
ordinarily accumulated in business office occupancy, including, without
limitation, kitchen refuse, or at times other than Landlord’s standard cleaning
times, and (z) the use of the Premises by Tenant other than during
Business Hours on Business Days, to the extent that Landlord incurs actual
increases in costs as a result of such use. 
Notwithstanding the foregoing, Landlord shall not be required to clean
any portions of the Premises used for preparation, serving or consumption of
food or beverages, data processing or reproducing operations, private
lavatories or toilets or other special purposes requiring greater or more
difficult cleaning work than office areas and, if Tenant requires the cleaning
of such areas, Tenant agrees, at Tenant’s expense, to retain Landlord’s
cleaning contractor to perform such cleaning. 
If the Premises be or become infested with vermin as a result of the use
or any misuse or neglect of the Premises by Tenant, its agents, employees,
visitors or licensees, Tenant shall at Tenant’s expense cause the same to be
exterminated from time to time to the reasonable satisfaction of Landlord and
shall employ such exterminators and such exterminating company or companies as
shall be reasonably approved by Landlord. 
Landlord shall, at Landlord’s expense, cause the common areas of the
Building to be exterminated on a monthly basis.

 

(ii)           Except for areas in the Premises that
Tenant identifies as restricted (e.g., the server room), Landlord, its cleaning
contractor and their respective employees shall have access to the Premises
after 5:00 p.m. and before 8:00 a.m. and shall have the right to use,
without charge therefor, all light, power and water in the Premises reasonably
required to clean the Premises as required under this Section 15.02(d).

 

(iii)          Tenant
shall not clean, nor require, permit, suffer or allow any windows in the
Premises to be cleaned, from the outside in violation of Section 202 of
the Labor Law, or any other applicable law.

 

(iv)          In the event that Tenant desires
additional services from Landlord’s cleaning contractor, such services, to the extent
the same can be provided, will be charged to Tenant at commercially competitive
rates.  Tenant shall also have the right
to hire personnel or to cause its own employees to perform cleaning in addition
to the cleaning provided by Landlord, subject to compliance with the terms and
conditions of this Lease, including, without limitation, Section 11.06
hereof.

 

15.03       If
Tenant shall require heat or air-conditioning services at any time other than
as set forth in Section 15.02(a), Landlord shall furnish such
service for such times upon no less than one (1) Business Day’s advance
notice from Tenant for periods after 6:00 p.m. and for all other periods,
and Tenant shall pay to Landlord upon demand as Additional Charges hereunder
Landlord’s then established charges therefor. 
Landlord’s current charges for overtime air-conditioning are $950.00 per
hour, Landlord’s current charges for overtime heating are $850.00 per hour and
Landlord’s current charges for overtime ventilation are $500.00 per hour.  Such overtime charges are subject to increase
from time to time based on increases in Landlord’s actual costs therefor.

 

15.04       Except
as otherwise expressly provided above, Landlord shall not be required to
provide any services to the Premises.

 

48

 

15.05                     Subject to the provisions of Section 35.04(b) and
Articles 19 and 20 hereof, Landlord reserves the right, without
liability to Tenant and without it being deemed a constructive eviction, to
stop or interrupt any heating, elevator, escalator, lighting, ventilating,
air-conditioning, steam, power, electricity, water, cleaning or other service
and to stop or interrupt the use of any Building facilities and systems at such
times as may be necessary and for as long as may reasonably be required by
reason of accidents, strikes, or the making of repairs, alterations or
improvements,  or inability to secure a
proper supply of fuel, gas, steam, water, electricity, labor or supplies, or by
reason of any other similar or dissimilar cause beyond the reasonable control
of Landlord.  Subject to the provisions
of Section 35.04(b) and Article 19 and Article 20
hereof, no such stoppage or interruption shall result in any liability
from Landlord to Tenant or entitle Tenant to any diminution or abatement of
rent or other compensation nor shall this Lease or any of the obligations of
Tenant be affected or reduced by reason of any such stoppage or
interruption.  Except in emergency
circumstances, Landlord shall give Tenant reasonable prior notice (which notice
need not be in writing) of its intention to make any repairs, alterations or
improvements referred to in this Section 15.05 or any other stoppages of
services of which Landlord has prior notice and shall use reasonable efforts in
making such repairs, alterations or improvements and in dealing with such other
stoppages of service so as to minimize interference with Tenant’s business
operations, provided that Landlord shall not be required to perform any such
work on an overtime or premium-pay basis.

 

15.06                     Only persons approved by Landlord shall be permitted
to furnish or sell laundry, linen, towels, drinking water, ice, food,
beverages, bootblacking, barbering and other similar supplies and services to
tenants.  Landlord may fix the
circumstances under which such supplies and services are to be furnished or
sold.  Landlord expressly reserves the
right at any time to designate an exclusive supplier of all or any one or more
of said supplies and services, provided
that the quality thereof and the charges therefor shall be reasonably
comparable to that of other suppliers in the midtown area of Manhattan in the
City of New York.  Landlord expressly
reserves the right to exclude from the Building any person not so designated by
Landlord.  However, Tenant, its regular
office employees or invitees may personally bring food or beverages into the
Building for consumption within the Premises solely by Tenant, its regular
office employees or invitees.

 

15.07                     In addition to any remedies which Landlord may have
under this Lease, and without reducing or adversely affecting any of Landlord’s
rights and remedies contained elsewhere in this Lease, if there shall be a
default hereunder by Tenant which shall not have been remedied within the
applicable grace period, Landlord shall not be obligated to furnish to Tenant
or the Premises any services outside of Business Hours on Business Days other
than Building standard electricity during such hours; and the discontinuance of
any one or more such services shall be without liability by Landlord to Tenant
and shall not reduce, diminish or otherwise affect any of Tenant’s covenants
and obligations under this Lease.

 

15.08                     If and for so long as Landlord maintains a Building
directory, Landlord, at Tenant’s request, shall maintain listings on such directory
of the names of Tenant, or its permitted subtenants, assignees or affiliates
and the names of any of their officers and employees, provided that the names
so listed shall not use more than Tenant’s Operating Share of the space on the
Building directory.  The actual cost to
Landlord for making any changes in 

 

49

 

such listings requested by Tenant shall be paid by Tenant to Landlord,
as Additional Charges hereunder, within thirty (30) days after delivery of an
invoice therefor.

 

15.09                     (a)                                  If Tenant shall install any supplemental
air conditioning units in the Premises and connect the same to the condenser
water loop of the Building (or if any of the same shall have been previously
installed in the Premises), then (i) all of such work shall be Alterations
under Article 11 of this Lease and, accordingly, Tenant shall
comply with all of its obligations under Article 11 with respect to
such installation and (ii) Tenant shall pay to Landlord, as Additional Charges,
commencing on the date on which Tenant shall connect said supplemental unit(s) to
the Building condenser water loop (or, if any such unit previously shall have
been installed in the Premises, commencing on the Commencement Date), an amount
equal to thirteen cents ($.13) per ton of condenser water used per hour (the “Condenser
Water Rate”) as measured by meter or meters installed and maintained by
Tenant at Tenant’s sole cost and expense (but subject to Landlord’s approval as
to the specifications and installation of such meter or meters).  Tenant shall pay Landlord for the use of such
condenser water within thirty (30) days after the delivery of an invoice
therefor.  The Condenser Water Rate may
be increased annually by an amount equal to Landlord’s increased cost to
furnish condenser water in the Building. 
In addition, Tenant shall pay to Landlord, within thirty (30) days after
demand, Landlord’s actual “hook up” charges. 
Within ninety (90) days after the date of this Lease, Tenant shall
deliver to Landlord a written notice specifying the amount of condenser water
Tenant will require, provided that such amount shall not exceed fifty (50)
tons.  If Tenant fails to deliver such
notice, Landlord cannot guaranty the quantity of condenser water that will be
made available to Tenant.  If, in the
twelve (12) month period following Tenant’s connection to the condenser water
system, Tenant fails to utilize the quantity of condenser water requested by
Tenant and allocated by Landlord, then Landlord shall have the right to reduce
the amount of condenser water allocated for Tenant’s use to the amount
necessary to supply Tenant’s requirements as evidenced by Tenant’s condenser
water use for the prior twelve (12) month period.  In addition, if Tenant fails to connect to
the condenser water system within twelve (12) months after the Rent
Commencement Date, Landlord shall not be required to make available to Tenant
any condenser water.

 

(b)                                 Notwithstanding the foregoing provisions
of Section 15.09(a), Tenant may at any time request that Landlord
provide up to fifty (50) tons of condenser water for Tenant’s use, provided
that if Tenant’s right to such use shall have lapsed pursuant to Section 15.09(a),
Landlord shall not be required to make such condenser water available to
Tenant, but Landlord will make reasonable efforts to do so, subject to
availability.

 

15.10                     Tenant hereby acknowledges and agrees that, in order
to permit Brookfield Properties, Inc. to qualify as a real estate
investment trust, or REIT, any services required or permitted to be performed
pursuant to this Lease that could be treated as “Impermissible Tenant Services”
under REIT rules may be performed by Brookfield Properties Management LLC
or another affiliate of Landlord that is a “taxable REIT subsidiary” (the “Service
Provider”).  Tenant hereby agrees to
make any payments for services provided by the Service Provider either to
Landlord for further payment to the Service Provider or directly to the Service
Provider, as directed.  Any payments made
to Landlord in respect of services provided by the Service Provider will be
credited to Tenant’s account with the Service Provider.

 

50

 

15.11                     Subject to the terms and conditions of Article 11
hereof, Tenant shall have the right, at its sole cost and expense:  (i) to obtain telecommunication services
from vendors of its choice, subject to Landlord’s reasonable approval and
reasonable requirements; (ii) to install a Tenant dedicated horizontal and
vertical telecommunications conduit riser running from the Building’s basement
point of service entry to the Premises; and (iii) to install up to two (2) four
(4”) inch EMT conduits running from the from the Building’s basement point of
service entry to the Premises; provided, however, that neither
Tenant nor any of Tenant’s telecommunication service vendors shall use the
basement telecommunications closet for any equipment other than the conduits
permitted pursuant to this Section 15.11 (it being agreed that all
other equipment required in connection therewith shall be located within the
Premises).  Landlord shall provide, at no
additional charge to Tenant, adequate riser capacity for Tenant to install the
conduits permitted pursuant to clause (iii) of this Section 15.11.  Tenant, at its sole cost and expense, shall
perform all work necessary to accommodate such telecommunication routes, such
as wiring and cabling, core drilling through slabs and foundation walls, and
relocating other tenant and Building equipment, and shall provide additional
security during the performance of such work and any tenant or Building
restoration required as a result of such work, including without limitation,
the restoration obligations set forth in this Lease.  If any remediation of Hazardous Materials are
required to comply with Legal Requirements in connection with Tenant’s Work
pursuant to this Section 15.11, then Landlord shall (x) perform
such remediation within ten (10) days after the receipt of Tenant’s notice
to Landlord thereof, or if the same is of such a nature that it cannot be
performed within ten (10) days, Landlord shall commence within such ten (10) day
period, and thereafter diligently pursue such performance, and (y) Landlord
shall deliver to Tenant an ACP-5 confirming such remediation.

 

ARTICLE 16

 

Access and Name of
Building; Signage

 

16.01                     Except for the space within the inside surfaces of all
walls, hung ceilings, floors, windows and doors bounding the Premises, all of
the Building, including, without limitation, exterior and atrium Building
walls, core corridor walls and doors and any core corridor entrance, any
terraces or roofs adjacent to the Premises, and any space in or adjacent to the
Premises used for shafts, stacks, pipes, conduits, fan rooms, ducts, electric
or other utilities, sinks or other Building facilities, and the use thereof, as
well as access thereto through the Premises for the purposes of operation,
maintenance, decoration and repair, are reserved to Landlord and persons
authorized by Landlord.  Tenant acknowledges
that Landlord has installed or is planning to install in the Building on the
inside of the windows thereof a film to reduce the usage of energy in the
Building.  Tenant agrees that the
foregoing provisions of this Section 16.01 shall apply to the installation,
maintenance or replacement of such film.

 

16.02                     (a)                                  Landlord reserves the right, and Tenant
shall permit Landlord and persons authorized by Landlord, to install, erect,
use and maintain pipes, ducts and conduits in and through the Premises; provided
that (x) if installed adjacent to the Premises then such installations
shall be, at Landlord’s cost and expense, located in boxed enclosures and
appropriately furred, and (y) in performing such installation work,
Landlord shall use reasonable efforts not to interfere with Tenant’s use of the
Premises without any obligation to employ 

 

51

 

overtime services.  Any damage to
the Premises resulting from Landlord’s exercise of the foregoing right shall be
repaired promptly by Landlord, at Landlord’s expense.

 

(b)                                 Subject to the provisions of this Section 16.02,
Tenant shall also permit, upon Landlord’s request, other occupants of the
Building and their contractors to enter the Premises to perform any permitted
alterations, repairs, improvements, replacements or restorations which may run
under, through or within any floor slabs, shafts, electric closets, columns or
other similar areas within the Premises; provided, however, that
upon Tenant’s request, (i) such work shall be performed on an overtime
basis and (ii) an employee of Tenant or other security personnel shall
supervise such work at Landlord’s cost and expense.  Any damage to the Premises resulting from any
such other occupant’s exercise of the foregoing right shall be repaired
promptly by Landlord, at Landlord’s expense.

 

(c)                                  Tenant and Tenant’s contractors shall,
upon reasonable advance notice to Landlord and the affected Building occupant
(the “Affected Occupant”), be permitted to enter those portions of the
Building leased to or otherwise occupied by such Affected Occupant (the “Occupied
Premises”) to the extent reasonably necessary to perform any permitted
Alterations or other repairs, replacements or restorations to the Premises
which may run under, through or within any floor slabs, shafts, electric
closets, columns or other similar areas within such Occupied Premises; provided,
however, that upon the request of the Affected Occupant, (i) such
work shall be performed on an overtime basis and (ii) an employee of the
Affected Occupant or other security personnel shall supervise Tenant’s work, in
each case at Tenant’s cost and expense. 
Tenant shall not interfere with the business operations of the Affected
Occupant or any other Building occupants in connection with any access granted
or work performed pursuant to this Section 16.02(c), and any damage
to the Occupied Premises or the Building resulting from Tenant’s exercise of
the foregoing right shall be repaired promptly by Tenant, at Tenant’s expense.  Notwithstanding the foregoing, access to any
Occupied Premises shall be subject to any required consent of the Affected
Occupant thereof.  If Landlord is unable
to arrange for Tenant to have access to any Occupied Premises and Landlord has
the right of access to such space for the purpose of repair, restoration or
installation of equipment, then, at the request of Tenant, Landlord shall
perform such work set forth above on behalf of Tenant, and Tenant shall
reimburse Landlord for Landlord’s Building standard charges for such work
within thirty (30) days of the rendition of a bill therefor.

 

16.03                     Landlord and persons authorized by Landlord shall have
the right, upon reasonable advance notice, except in cases of emergency, to
enter and/or pass through the Premises at reasonable times provided Landlord
shall use reasonable efforts to minimize any interference with Tenant’s
business operations (without obligation to make such visits during non-business
hours) and shall be accompanied by a designated representative of Tenant if
Tenant shall have made such representative available to Landlord, (a) to
examine the Premises and to show them to actual and prospective Superior
Lessors, Superior Mortgagees, or prospective purchasers, mortgagees or lessees
of the entire Building, (b) to make such repairs, alterations, additions
and improvements in or to the Premises and/or in or to the Building or its
facilities and equipment as Landlord or persons authorized by Landlord is or
are required or desires to make, and (c) to read any utility meters
located therein.  Landlord and such
authorized persons shall be allowed to take all materials into and upon the
Premises that may be required in connection therewith, without any liability to
Tenant and without any reduction of Tenant’s covenants and 

 

52

 

obligations hereunder.  Landlord
shall provide at least twenty-four (24) hours prior notice of any such entry
(except in the event of an emergency) and shall comply with Tenant’s reasonable
security measures.  Tenant shall have the
right to designate (x) any server room; and (y) up to two (2) offices
within the Premises (to the extent that the two (2) offices are required
to be “off-limits” to comply with the Securities Act of 1933, as amended), as “restricted
access”, in which event neither Landlord nor its agents, employees, contractors
or invitees shall enter such restricted areas except in the case of an
emergency.

 

16.04                     If at any time any windows of the Premises are either
temporarily darkened or obstructed by reason of any repairs, improvements,
maintenance and/or cleaning in or about the Building (or permanently darkened
or obstructed if required by law) or covered by any translucent material for
the purpose of energy conservation, or if any part of the Building, other than
the Premises, is temporarily or permanently closed or inoperable, the same
shall be without liability to Landlord and without any reduction or diminution
of Tenant’s obligations under this Lease.

 

16.05                     During the time period referred to in Section 7.07(a) and
during the period of eighteen (18) months prior to the expiration date of this
Lease, Landlord and persons authorized by Landlord may exhibit the Premises to
prospective tenants.

 

16.06                     Intentionally omitted.

 

16.07                     Landlord reserves the right, at any time, without it
being deemed a constructive eviction and without incurring any liability to
Tenant therefor, or affecting or reducing any of Tenant’s covenants and
obligations hereunder, to make or permit to be made such changes, alterations,
additions and improvements in or to the Building and the fixtures and equipment
thereof, as well as in or to the street entrances, atrium, doors, halls,
passages, elevators, escalators and stairways thereof, and other public parts
of the Building, as Landlord shall deem necessary or desirable.  Landlord agrees to use reasonable efforts to
minimize disruption to Tenant’s business operations in the Premises.  Landlord agrees that any changes,
alterations, additions or improvements performed pursuant to this Section shall
not, when completed, unreasonably interfere with the access to or use of the
Premises by Tenant or materially diminish any services to be provided by
Landlord hereunder.

 

16.08                     Landlord reserves the right to name the Building and
to change the name or address of the Building at any time and from time to
time.  Landlord shall endeavor to give
Tenant reasonable prior notice of any change in the address of the Building.  Neither this Lease nor any use by Tenant shall
give Tenant any easement or other right in or to the use of any door or any
passage or any concourse or any plaza connecting the Building with any subway
or any other building or to any public conveniences, and the use of such doors,
passages, concourses, plazas and conveniences may without notice to Tenant, be
regulated or discontinued at any time by Landlord.

 

16.09                     If Tenant shall not be personally present to open and
permit an entry into the Premises at any time when for any reason an entry
therein shall be urgently necessary by reason of fire or other emergency,
Landlord or Landlord’s agents may forcibly enter the same without rendering
Landlord or such agents liable therefor (if during such entry Landlord or 

 

53

 

Landlord’s agents shall accord reasonable care to Tenant’s property)
and without in any manner affecting the obligations and covenants of this
Lease.

 

16.10                     Any damage to the Premises resulting from the exercise
by Landlord of its rights granted under this Article 16 shall be
promptly repaired by Landlord at Landlord’s expense.

 

16.11                     (a)                                  Tenant shall be permitted to install, at
its sole cost and expense, Building standard signage in the elevator lobbies of
the floors of the Building on which the Premises are located, provided, however, that Tenant’s signage
rights under this Section 16.11(a) are non-exclusive (unless
Tenant is the only occupant of such floor).

 

(b)                                 Notwithstanding anything to the contrary
contained herein, the design, content, materials and specific location of any
signage permitted pursuant to Section 16.11(a) hereof shall be
subject to Landlord’s signage guidelines and the written approval of Landlord,
which approval shall not be unreasonably withheld or delayed.  Tenant shall be responsible for obtaining all
necessary permits and approvals from governmental authorities having
jurisdiction for the design, installation and maintenance of all Tenant’s signs
hereunder.

 

ARTICLE 17

 

Notice of Occurrences

 

17.01                     Tenant shall give prompt notice to Landlord of (a) any
occurrence in or about the Premises for which Landlord might be liable, (b) any
fire or other casualty in the Premises, (c) any damage to or defect in the
Premises, including the fixtures, equipment and appurtenances thereof, for the
repair of which Landlord might be responsible, and (d) any damage to or
defect in any part or appurtenance of the Building’s sanitary, electrical,
heating, ventilating, air-conditioning, elevator or other systems located in or
passing through the Premises or any part thereof, if and to the extent that
Tenant shall have knowledge of any of the foregoing matters.

 

ARTICLE 18

 

Non-Liability and
Indemnification

 

18.01                     Neither Landlord, any Superior Lessor or any Superior
Mortgagee, nor any member, partner, director, officer, shareholder, principal,
agent, servant or employee of Landlord, any Superior Lessor or any Superior
Mortgagee (in any case whether disclosed or undisclosed), shall be liable to
Tenant for any loss, injury or damage to Tenant or to any other person, or to
its or their property, irrespective of the cause of such injury, damage or
loss, nor shall the aforesaid parties be liable for any damage to property of
Tenant or of others entrusted to employees of Landlord nor for loss of or damage
to any such property by theft or otherwise;
provided, however, that subject to the provisions of Section 35.03
hereof, nothing contained in this Section 18.01 shall be construed
to exculpate Landlord for loss, injury or damage to the extent caused by or
resulting from the negligence or willful misconduct of Landlord, its agents, 

 

54

 

servants, employees or contractors or a breach of Landlord’s
obligations under this Lease.  Further,
neither Landlord, any Superior Lessor or any Superior Mortgagee, nor any
member, partner, director, officer, principal, shareholder, agent, servant or
employee of Landlord, any Superior Lessor or any Superior Mortgagee, shall be
liable (a) for any such damage caused by other tenants or persons in, upon
or about the Building or the Real Property, or caused by operations in
construction of any private, public or quasi-public work; or (b) even if
negligent, for consequential damages arising out of any loss of use of the
Premises or any equipment, facilities or other Tenant’s Property therein by
Tenant or any person claiming through or under Tenant.

 

18.02                     Except to the extent caused by or resulting from the
negligence or willful misconduct of Landlord, its agents, servants, employees
or contractors or a breach of Landlord’s obligations under this Lease, Tenant
shall indemnify and hold harmless Landlord and all Superior Lessors and
Superior Mortgagees and its and their respective members, partners, directors,
officers, principals, shareholders, agents and employees from and against any
and all claims arising from or in connection with (a) the conduct or
management of the Premises or of any business therein, or any work or thing
whatsoever done, or any condition created (other than by Landlord, its agents,
or employees) in or about the Premises during the term of this Lease or during
the period of time, if any, prior to the Commencement Date that Tenant may have
been given access to the Premises; (b) any act, omission or negligence of Tenant
or any of its subtenants or licensees or its or their members, partners,
directors, principals, shareholders, officers, agents, employees or
contractors; (c) any accident, injury or damage whatever occurring in, at
or upon the Premises; and (d) any breach or default by Tenant in the full
and prompt payment and performance of Tenant’s obligations under this Lease;
together with all reasonable costs, expenses and liabilities incurred in or in
connection with each such claim or action or proceeding brought thereon,
including, without limitation, all reasonable attorneys’ fees and
expenses.  In case any action or
proceeding be brought against Landlord and/or any Superior Lessor or Superior
Mortgagee and/or its or their members, partners, directors, officers,
principals, shareholders, agents and/or employees by reason of any such claim
covered by the foregoing indemnity, Tenant, upon notice from Landlord or such
Superior Lessor or Superior Mortgagee, shall resist and defend such action or
proceeding (by counsel reasonably satisfactory to Landlord or such Superior
Lessor or Superior Mortgagee).

 

ARTICLE 19

 

Damage or Destruction

 

19.01                     (a)                                  If the Building or the Premises shall be
partially or totally damaged or destroyed by fire or other casualty (and if
this Lease shall not be terminated as in this Article 19
hereinafter provided), (i) Landlord shall repair the damage to and restore
and rebuild the Building and the core and shell of the Premises (excluding
Tenant’s improvements and betterments and the property which is deemed Tenant’s
Property pursuant to Section 12.02 hereof) with reasonable dispatch
after notice to it of such damage or destruction and the collection of the
insurance proceeds attributable to such damage (“Landlord’s Restoration Work”),
and (ii) Tenant shall repair the damage to and restore and repair Tenant’s
improvements and betterments and the property which is deemed Tenant’s Property
pursuant to Section 12.02 hereof, all to the extent necessary for
Tenant to continue to conduct its business operations from 

 

55

 

the Premises, with reasonable dispatch after the substantial completion
of Landlord’s repairs and restoration of the core and shell of the Premises
provided for in clause (a) above (“Tenant’s Restoration Work”).  Such work by Tenant shall be deemed
Alterations for the purposes of Article 11 hereof.  Provided
that this Lease shall not be terminated by Landlord or Tenant, the proceeds of
policies providing coverage for Tenant’s improvements and betterments shall, (x) be
paid to Tenant if the same shall be disbursed by Tenant’s insurance company in
progress payments agreed to by Landlord and Tenant to fund the cost of Tenant’s
Restoration Work as the performance of such work progresses, or (y) if
such proceeds shall be disbursed by Tenant’s insurance company in a “lump sum”,
or single advance payment, be paid to Landlord and segregated in an escrow
account with an agent (“Escrow Agent”) selected by Landlord and reasonably approved by Tenant
for the purpose of the casualty in question, whereupon the proceeds shall be
disbursed by Escrow Agent to Tenant in payment of the cost of Tenant’s
Restoration Work as the performance of such work progresses, against
certificates, in form and substance and certified by a person satisfactory to
Landlord and Escrow Agent, showing that the disbursement to be made represents
not more than ninety percent (90%) of the cost of the work and materials
described in the certificate and that the estimated cost of completion of
Tenant’s Restoration Work does not exceed the undisbursed balance of such
proceeds (exclusive of the ten percent (10%) retention, which shall be released
upon delivery to Landlord of true and complete copies of all necessary
governmental permits and certificates for final approval of Tenant’s
Restoration Work, together with a copy of Tenant’s “as-built” plans and
specifications therefor).  In the event of disbursement of the proceeds pursuant to clause (y) above,
the balance of such
proceeds shall be paid by Escrow Agent to Tenant upon the presentation of a
like certificate, satisfactory to Landlord and Escrow Agent, evidencing that
Tenant’s Restoration Work has been completed and that there are no mechanics’
or other liens outstanding relating thereto. 
Notwithstanding anything to the contrary contained herein, if this Lease
shall be terminated by Landlord or Tenant pursuant to this Article 19,
or if this Lease shall expire without Tenant’s Restoration Work having been
performed, the proceeds of policies providing coverage for Tenant’s
improvements and betterments shall be paid to Landlord.  Tenant shall be solely responsible for (A) the
amount of any deductible under the policy insuring Tenant’s improvements and
betterments and (B) the amount, if any, by which the cost of repairing and
restoring Tenant’s improvements and betterments exceeds the available insurance
proceeds therefor.  When operating under Section 19.01(b) hereof,
or if this Lease shall be terminated or expire without Tenant’s Restoration
Work having been performed, the amount due in accordance with subparagraph (A) above
shall be Additional Charges under this Lease and payable by Tenant to Landlord
upon demand.  The proceeds of Tenant’s
insurance policies with respect to Tenant’s Property shall be payable to
Tenant.

 

(b)                                 Notwithstanding anything to the contrary
contained in this Article, if in Landlord’s sole discretion, it would be
appropriate for safety reasons, health reasons or the efficient operation or
restoration of the Building for Landlord to perform all or a portion of Tenant’s
Restoration Work on behalf of Tenant, then (i) Landlord shall give Tenant
a notice specifying the portion of Tenant’s Restoration Work to be performed by
Landlord (“Specified Restoration Work”), (ii) Landlord shall
perform such Specified Restoration Work and (iii) Tenant shall pay to
Landlord (or Landlord shall retain from the insurance proceeds paid to Landlord
in accordance with Section 19.01(a) hereof) the cost of such
Specified Restoration Work within ten (10) days following the giving of
Landlord’s written demand therefor (provided that Tenant shall have received
the insurance proceeds in accordance with Section 19.01(a) 

 

56

 

hereof). Tenant shall promptly permit Landlord access to the Premises
for the purpose of performing the Specified Restoration Work and any
restoration work to the Building which is not the responsibility of Tenant
hereunder.  If required by Landlord in
connection with the performance of the Specified Restoration Work or Landlord’s
Restoration Work, Tenant shall promptly remove from the Premises all or such
items of Tenant’s Property as Landlord may require by written notice (“Tenant’s
Property Removal Obligation”).  In
the event that Tenant fails to comply with Tenant’s Property Removal Obligation
within ten (10) Business Days after the giving of such written notice by
Landlord, Landlord shall have the right to remove and store such Tenant’s
Property at Tenant’s sole cost and expense and with no liability to Landlord.
Tenant shall be solely responsible for arranging for any visits to the Premises
by Tenant’s insurance adjuster that may be desired by Tenant prior to the
performance by Landlord or Tenant of Tenant’s Property Removal Obligation or
the performance by Landlord of Landlord’s Restoration Work or the Specified
Restoration Work and Landlord shall be under no obligation to delay the
performance of same, nor shall Landlord have any liability to Tenant, in the
event that Tenant fails to do so.

 

19.02                     Subject to the provisions of Section 19.05
hereof, if all or part of the Premises shall be damaged or destroyed or
rendered completely or partially untenantable on account of fire or other
casualty, the Fixed Rent and the Additional Charges under Article 3
hereof shall be abated in the proportion that the untenantable area of the
Premises bears to the total area of the Premises, for the period from the date
of the damage or destruction to (i) the date that is one hundred fifty
(150) days after the date that the damage to the core and shell of the Premises
(exclusive of Tenant’s improvements and betterments and Tenant’s Property)
shall be substantially repaired by Landlord (provided,
however, that if in Landlord’s reasonable judgment based upon the
estimate of Landlord’s independent contractors such repairs would have been
substantially completed at an earlier date but for Tenant’s having failed to
reasonably cooperate with Landlord in effecting such repair, then the core and
shell of the Premises shall be deemed to have been repaired substantially on
such earlier date and the period of any reduction or abatement shall be reduced
accordingly) or (ii) if the Building and not the Premises is so damaged or
destroyed, the date on which the Premises shall be made tenantable; provided, however, should Tenant or any of
its subtenants reoccupy a portion of the Premises during the period the repair
work is taking place and prior to the date that the Premises are substantially
repaired or made tenantable for the conduct of its or their business (which
shall not include entry upon and occupancy of the Premises with the prior
written consent of Landlord for the purpose of performing restoration and/or
repair to Tenant’s Property, improvements and finish work), the Fixed Rent and
the Additional Charges allocable to such reoccupied portion, based upon the
proportion which the area of the reoccupied portion of the Premises bears to
the total area of the Premises, shall be payable by Tenant from the date of such
occupancy.

 

19.03                     (a)                                  If the Building shall be totally damaged
or destroyed by fire or other casualty, or if the Building shall be so damaged
or destroyed by fire or other casualty (whether or not the Premises are damaged
or destroyed) that its repair or restoration requires more than twelve (12)
months and the expenditure of more than thirty (30%) percent of the full
insurable value of the Building immediately prior to the casualty (as estimated
in any such case by a reputable contractor, registered architect or licensed
professional engineer designated by Landlord), and provided Landlord shall
terminate Leases covering no less than fifty (50%) percent of the office space
in the Building then leased to tenants (including Tenant) in the 

 

57

 

Building, then in such case Landlord may terminate this Lease by giving
Tenant notice to such effect within one hundred fifty (150) days after the date
of the casualty.  For the purpose of this
Section only, “full insurable value” shall mean replacement cost less the
cost of footings, foundations and other structures below the street and first
floors of the Building.

 

(b)                                 If the Premises or any part thereof or
the means of access thereto or Building systems servicing same shall be damaged
by fire or other casualty, and Landlord is required to or elects to repair and
restore the Premises, Landlord shall, within one-hundred twenty (120) days
after such damage or destruction, provide Tenant with a written notice of the
estimated date on which the restoration of the Premises shall be substantially
completed.  If such estimated date is
more than fourteen (14) months after the date of such damage or destruction,
Tenant may terminate this Lease by notice to Landlord, which notice shall be
given within thirty (30) days after the date Landlord provides the notice
required by the preceding sentence, and such termination shall be effective
upon the giving of Tenant’s notice. 
Failure by Tenant to provide such notice within such thirty (30) day
period shall be deemed an election by Tenant not to terminate this Lease.  If Tenant elects not to terminate this Lease
or is deemed to have so elected, and if Landlord has not substantially
completed the required repairs and restored the Premises within the period
originally estimated by Landlord or within such period thereafter (not to
exceed three (3) months) as shall equal the aggregate period Landlord may
have been delayed in commencing or completing such repairs by Force Majeure
Causes (as defined in Section 35.04(a) hereof), then Tenant
shall have the further right to elect to terminate this Lease upon written
notice to Landlord and such election shall be effective upon the expiration of
thirty (30) days after the date of such notice, unless Landlord substantially
completes such restoration within such thirty (30) day period.

 

19.04                     Except as expressly provided in Section 19.03(b) hereof,
Tenant shall not be entitled to terminate this Lease and Landlord shall have no
liability to Tenant for inconvenience, loss of business or annoyance arising
from any repair or restoration of any portion of the Premises or of the
Building pursuant to this Article 19.  Landlord shall use reasonable efforts to make
such repair or restoration promptly and in such manner as not unreasonably to
interfere with Tenant’s use and occupancy of the Premises, but Landlord shall
not be required to do such repair or restoration work except during Business
Hours of Business Days.

 

19.05                     Notwithstanding any of the foregoing provisions of
this Article 19, if by reason of some act or omission on the part
of Tenant or any of its subtenants or its or their partners, directors,
officers, servants, employees, agents or contractors of which Landlord shall
have given Tenant notice and a reasonable opportunity to cure either, Landlord
or any Superior Lessor or any Superior Mortgagee shall be unable to collect all
of the insurance proceeds (including, without limitation, rent insurance
proceeds) applicable to damage or destruction of the Premises or the Building
by fire or other casualty, then, without prejudice to any other remedies which
may be available against Tenant, there shall be no abatement or reduction of
the Fixed Rent or Additional Charges.

 

19.06                     Landlord will not carry insurance of any kind on
Tenant’s Property and improvements and betterments, and shall not be obligated
to repair any damage to or replace Tenant’s Property, improvements or
betterments.  Tenant agrees to look to
its own insurance for 

 

58

 

recovery of any damage to or loss of Tenant’s Property, improvements or
betterments.  If Tenant shall fail to
maintain such insurance, Landlord shall have the right to obtain insurance on
Tenant’s Property, improvements or betterments and the cost thereof shall be
Additional Charges under this Lease and payable by Tenant to Landlord on
demand.

 

19.07                     The provisions of this Article 19 shall be
deemed an express agreement governing any case of damage or destruction of the
Premises by fire or other casualty, and Section 227 of the Real Property
Law of the State of New York, providing for such a contingency in the absence
of an express agreement, and any other law of like import, now or hereafter in
force, shall have no application in such case.

 

ARTICLE 20

 

Eminent Domain

 

20.01                     If the whole of the Building or the Premises shall be
taken by condemnation or in any other manner for any public or quasi-public use
or purpose, this Lease and the term and estate hereby granted shall terminate
as of the date of vesting of title on such taking (the “Date of the Taking”),
and the Fixed Rent and Additional Charges shall be prorated and adjusted as of
such date.

 

20.02                     If more than forty (40%) percent of the Building shall
be so taken, this Lease shall be unaffected by such taking, except that (a) Landlord
may, at its option, provided that Landlord shall terminate leases of no less
than fifty (50%) percent of the office space then leased to tenants in the
Building upon which the effect of such taking shall have been substantially
similar to the effect of same upon the Premises, terminate this Lease by giving
Tenant notice to that effect within ninety (90) days after the Date of the
Taking, and (b) if twenty (20%) percent or more of the Premises shall be
so taken and the remaining area of the Premises shall not be sufficient, in
Tenant’s reasonable judgment, for Tenant to continue the operation of its
business, Tenant may terminate this Lease by giving Landlord notice to that
effect within ninety (90) days after the Date of the Taking. This Lease shall
terminate on the date that such notice from Landlord or Tenant to the other
shall be given, and the Fixed Rent and Additional Charges shall be prorated and
adjusted as of such termination date, except that with respect to any portion
of the Premises which is the subject of the taking, if earlier, as of the Date
of the Taking. Upon such partial taking and this Lease continuing in force as
to any part of the Premises, the Fixed Rent and Additional Charges shall be
adjusted according to the rentable area remaining.

 

20.03                     Landlord shall be entitled to receive the entire award
or payment in connection with any taking without deduction therefrom for any
estate vested in Tenant by this Lease and Tenant shall receive no part of such
award except as hereinafter expressly provided in this Article 20.
Tenant hereby expressly assigns to Landlord all of its right, title and
interest in and to every such award or payment; provided, however, that Tenant shall have the right to make
a separate claim for its moving expenses and to the extent the award otherwise
payable to Landlord shall not be diminished thereby, for any of Tenant’s
Property taken.

 

59

 

20.04                     If the temporary use or occupancy of all or any part
of the Premises shall be taken by condemnation or in any other manner for any
public or quasi-public use or purpose during the term of this Lease, Tenant
shall be entitled, except as hereinafter set forth, to receive that portion of
the award or payment for such taking which represents compensation for the use
and occupancy of the Premises, for the taking of Tenant’s Property and for
moving expenses, and Landlord shall be entitled to receive that portion which
represents reimbursement for the cost of restoration of the Premises.  This Lease shall be and remain unaffected by
such taking and Tenant shall continue to be responsible for all of its
obligations hereunder insofar as such obligations are not affected by such
taking and shall continue to pay in full the Fixed Rent and Additional Charges
when due.  If the period of temporary use
or occupancy shall extend beyond the Expiration Date of this Lease, that part
of the award which represents compensation for the use and occupancy of the
Premises (or a part thereof) shall be divided between Landlord and Tenant so
that Tenant shall receive so much thereof as represents the period up to and
including such Expiration Date and Landlord shall receive so much thereof as
represents the period after such Expiration Date.  All monies paid as, or as part of, an award
for temporary use and occupancy for a period beyond the date to which the Fixed
Rent and Additional Charges have been paid shall be received, held and applied
by Landlord as a trust fund for payment of the Fixed Rent and Additional
Charges becoming due hereunder.

 

20.05                     In the event of a taking of less than the whole of the
Building and/or the Land which does not result in termination of this Lease, or
in the event of a taking for a temporary use or occupancy of all or any part of
the Premises which does not result in a termination of this Lease, (a) Landlord,
at its expense, and whether or not any award or awards shall be sufficient for
the purpose, shall proceed with reasonable diligence to repair the remaining
parts of the Building and the Premises (other than Tenant’s Property) to
substantially their former condition to the extent that the same may be
feasible (subject to reasonable changes which Landlord shall deem desirable)
and so as to constitute a complete and rentable Building and Premises, and (b) Tenant,
at its expense, and whether or not any award or awards shall be sufficient for
the purpose, shall proceed with reasonable diligence to replace or repair
Tenant’s Property to substantially its former condition, to the extent that the
same may be necessary or desirable, as reasonably determined by Tenant, for the
operation of Tenant’s business in the Premises.

 

ARTICLE 21

 

Surrender

 

21.01                     On the Expiration Date or upon any earlier termination
of this Lease, or upon any reentry by Landlord upon the Premises, Tenant shall
quit and surrender the Premises to Landlord “broom-clean” and in good order,
condition and repair, except for ordinary wear and tear and damage from
casualty or condemnation, and Tenant shall remove (i) all of Tenant’s
Property therefrom except as otherwise expressly provided in this Lease and (ii) any
fixtures, equipment, improvements and appurtenances required by Landlord to be removed
pursuant to Section 12.01 of this Lease, and, in such event, repair
and restore the Premises in accordance with the provisions of Section 12.01.

 

60

 

21.02                     No act or thing done by Landlord or its agents shall
be deemed an acceptance of a surrender of the Premises, and no agreement to
accept such surrender shall be valid unless in writing and signed by Landlord
and each Superior Lessor and Superior Mortgagee whose lease or mortgage, as the
case may be, provides that no such surrender may be accepted without its
consent.

 

ARTICLE 22

 

Conditions of Limitation

 

22.01                     Upon the occurrence of a Bankruptcy Event with respect
to Tenant or any guarantor of Tenant’s obligations under this Lease, Landlord
may end the term of this Lease by giving written notice of same to Tenant, and
immediately upon the giving of such notice this Lease and the term and estate
hereby granted, whether or not the term shall theretofore have commenced, shall
terminate with the same effect as if that day were the expiration date of this
Lease, but Tenant shall remain liable for damages as provided in Article 24
hereof.  For purposes of this Lease, a “Bankruptcy
Event” shall be deemed to have occurred with respect to the Tenant or any guarantor
of the Tenant’s obligations under this Lease if (i) such Person makes a
general assignment for the benefit of creditors, (ii) such Person
commences a voluntary case or proceeding under any applicable law (including,
without limitation, Title 11 of the United States Code) in any jurisdiction
(including, without limitation, the United States, any state or any foreign
jurisdiction) relating to bankruptcy, insolvency, reorganization, liquidation,
dissolution or relief of debtors, (iii) such Person is adjudged a bankrupt
or insolvent, or has entered against it an order for relief or similar
adjudication, in any proceeding in any jurisdiction (including, without
limitation, the United States, any state or any foreign jurisdiction) relating
to bankruptcy, insolvency, reorganization, dissolution, liquidation or relief
of debtors, (iv) such Person files a petition or answer seeking for itself
any reorganization, arrangement, composition, readjustment, liquidation or
similar relief under any law (including, without limitation, Title 11 of the
United States Code) of any jurisdiction (including, without limitation, the
United States, any state or any foreign jurisdiction), (v) such Person
files an answer or other pleading admitting or failing to contest the material
allegations of a petition filed against it in any proceeding in any
jurisdiction (including, without limitation, the United States, any state or
any foreign jurisdiction) relating to bankruptcy, insolvency, reorganization,
dissolution, liquidation or relief of debtors, (vi) such Person seeks,
consents to or acquiesces in the appointment of a trustee, receiver, assignee,
liquidator, conservator, administrator, sequestrator, custodian or similar
official for the Person or of all or any substantial part of its assets, (vii) such
person admits in writing its inability to pay its debts generally as they
become due, or (viii) any involuntary case, proceeding or other action
against such Person shall be commenced in any jurisdiction (including, without
limitation, the United States, any state or any foreign jurisdiction) seeking
to have an order for relief entered against it as a debtor or to adjudicate it
a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment,
liquidation, dissolution, composition of it or its debts or similar relief
under any law (including, without limitation, Title 11 of the United States
Code) of any jurisdiction (including, without limitation, the United States,
any state or any foreign jurisdiction) relating to bankruptcy, insolvency,
reorganization, dissolution, liquidation or relief of debtors, or seeking
appointment of a trustee, receiver, assignee, liquidator, conservator,
administrator, sequestrator, custodian or similar official for it or for all or
any substantial part of its property, and such case, proceeding or other action
(A) results in the entry of any order for 

 

61

 

relief or similar adjudication against it, or (B) shall remain
undismissed for a period of ninety (90) days.

 

22.02                     This Lease and the term and estate hereby granted are
subject to the further limitations (each of which shall be an “Event of
Default” hereunder) that:

 

(a)                                  if Tenant shall default in the payment of
any Fixed Rent or Additional Charges, and such default shall continue for ten (10) days
after written notice thereof has been given to Tenant, or

 

(b)                                 if Tenant shall, whether by action or
inaction, be in default of any of its obligations under this Lease (other than
a default in the payment of Fixed Rent or Additional Charges) and such default
shall continue and not be remedied as soon as practicable and in any event
within twenty (20) days after Landlord shall have given to Tenant a written
notice specifying the same, or, in the case of a default which cannot with due
diligence be cured within a period of twenty (20) days, if Tenant shall not (x) within
said twenty (20) day period advise Landlord of Tenant’s intention to take all
steps reasonably necessary to remedy such default, (y) duly commence
within said twenty (20) day period, and thereafter diligently prosecute to
completion all steps reasonably necessary to remedy the default and (z) complete
such remedy within a reasonable time after the date of said notice of Landlord,
or

 

(c)                                  if any event shall occur or any
contingency shall arise whereby this Lease or the estate hereby granted or the
unexpired balance of the term hereof would, by operation of law or otherwise,
devolve upon or pass to any person, firm or corporation other than Tenant,
except as expressly permitted by Article 7 hereof, or

 

(d)                                 if Tenant shall abandon the Premises and
fail to secure the same,

 

then, in any of
said cases Landlord may give to Tenant a notice of intention to end the term of
this Lease at the expiration of five (5) days from the date of the service
of such notice of intention, and upon the expiration of said five (5) days
this Lease and the term and estate hereby granted, whether or not the term
shall theretofore have commenced, shall terminate with the same effect as if
that day was the day herein definitely fixed for the end and expiration of this
Lease, but Tenant shall remain liable for damages as provided in Article 24
hereof.

 

22.03                     (a)                                  If Tenant shall have assigned its
interest in this Lease, and this Lease shall thereafter be disaffirmed or
rejected in any proceeding under the United States Bankruptcy Code or under the
provisions of any Federal, state or foreign law of like import, or in the event
of termination of this Lease by reason of any such proceeding, the assignor or
any of its predecessors in interest under this Lease, upon request of Landlord
given within ninety (90) days after such disaffirmance or rejection shall (a) pay
to Landlord all Fixed Rent and Additional Charges then due and payable to
Landlord under this Lease to and including the date of such disaffirmance or
rejection and (b) enter into a new lease as lessee with Landlord of the
Premises for a term commencing on the effective date of such disaffirmance or
rejection and ending on the Expiration Date, unless sooner terminated as in
such Lease provided, at the same Fixed Rent and Additional Charges and upon the
then executory terms, covenants and conditions as are contained in this Lease,
except that (i) the rights of the lessee under the new lease, shall be

 

62

 

subject to any possessory rights of the assignee in question under this
Lease and any rights of persons claiming through or under such assignee, (ii) such
new lease shall require all defaults existing under this Lease to be cured by
the lessee with reasonable diligence, and (iii) such new lease shall
require the lessee to pay all Additional Charges which, had this Lease not been
disaffirmed or rejected, would have become due after the effective date of such
disaffirmance or rejection with respect to any prior period.  If the lessee shall fail or refuse to enter
into the new lease within ten (10) days after Landlord’s request to do so,
then in addition to all other rights and remedies by reason of such default,
under this Lease, at law or in equity, Landlord shall have the same rights and
remedies against the lessee as if the lessee had entered into such new lease
and such new lease had thereafter been terminated at the beginning of its term
by reason of the default of the lessee thereunder.

 

(b)                                 If pursuant to the United States
Bankruptcy Code Tenant is permitted to assign this Lease in disregard of the
restrictions contained in Article 7 hereof (or if this Lease shall
be assumed by a trustee), the trustee or assignee shall cure any default under
this Lease and shall provide adequate assurance of future performance by the
trustee or assignee including (a) of the source of payment of rent and
performance of other obligations under this Lease (for which adequate assurance
shall mean the deposit of cash security with Landlord in an amount equal to the
sum of one year’s Fixed Rent then reserved hereunder plus an amount equal to
all Additional Charges payable under Article 3 for the calendar
year preceding the year in which such assignment is intended to become
effective, which deposit shall be held by Landlord, without interest, for the
balance of the term as security for the full and faithful performance of all of
the obligations under this Lease on the part of Tenant yet to be performed) and
that any such assignee of this Lease shall have a net worth exclusive of good
will, computed in accordance with GAAP, equal to at least ten (10) times
the aggregate of the annual Fixed Rent reserved hereunder plus all Additional
Charges for the preceding calendar year as aforesaid and (b) that the use
of the Premises shall in no way diminish the reputation of the Building as a
first-class office building or impose any additional burden upon the Building
or increase the services to be provided by Landlord.  If all defaults are not cured and such
adequate assurance is not provided within sixty (60) days after there has been
an order for relief under the United States Bankruptcy Code, then this Lease
shall be deemed rejected, Tenant or any other person in possession shall vacate
the Premises, and Landlord shall be entitled to retain any rent or security
deposit previously received from Tenant and shall have no further liability to
Tenant or any person claiming through Tenant or any trustee.  If Tenant receives or is to receive any
valuable consideration for such an assignment of this Lease, such
consideration, after deducting therefrom (a) the brokerage commissions, if
any, and other expenses reasonably incurred by Tenant for such assignment and (b) any
portion of such consideration reasonably designed by the assignee as paid for
the purchase of Tenant’s Property in the Premises, shall be and become the sole
exclusive property of Landlord and shall be paid over to Landlord directly by
such assignee.  If Tenant’s trustee,
Tenant or Tenant as debtor-in-possession assumes this Lease and proposes to
assign the same (pursuant to Title 11 U.S.C. Section 365, as the same
may be amended) to any person, including, without limitation, any individual,
partnership or corporate entity, who shall have made a bona fide offer to
accept an assignment of this Lease on terms acceptable to the trustee, Tenant
or Tenant as debtor-in-possession, then notice of such proposed assignment,
setting forth (x) the name and address of such person, (y) all of the
terms and conditions of such offer, and (z) the adequate assurance to be
provided Landlord to assure such person’s future performance under this Lease,
including, without limitation, the assurances referred to in Title 11 

 

63

 

U.S.C. Section 365(b)(3) (as the same may be amended), shall
be given to Landlord by the trustee, Tenant or Tenant as debtor-in-possession
no later than twenty (20) days after receipt by the trustee, Tenant or Tenant
as debtor-in-possession of such offer, but in any event no later than ten (10) days
prior to the date that the trustee, Tenant or Tenant as debtor-in-possession
shall make application to a court of competent jurisdiction for authority and
approval to enter into such assignment and assumption, and Landlord shall
thereupon have the prior right and option, to be exercised by notice to the
trustee, Tenant or Tenant as debtor-in- possession, given at any time prior to
the effective date of such proposed assignment, to accept an assignment of this
Lease upon the same terms and conditions and for the same consideration, if
any, as the bona fide offer made by such person, less any brokerage commissions
which may be payable out of the consideration to be paid by such person for the
assignment of this Lease.

 

ARTICLE 23

 

Reentry by Landlord

 

23.01                     If Tenant shall default in the payment of any Fixed
Rent or Additional Charges, and such default shall continue for ten (10) days
after written notice thereof has been given to Tenant, or if this Lease shall
terminate as provided in Article 22 hereof, Landlord or Landlord’s
agents and employees may immediately or at any time thereafter reenter the
Premises, or any part thereof, either by summary dispossess proceedings or by
any suitable action or proceeding at law, or by force or otherwise, without
being liable to indictment, prosecution or damages therefor, and may repossess
the same, and may remove any person therefrom, to the end that Landlord may
have, hold and enjoy the Premises.  The
word “reenter,” as used herein, is not restricted to its technical legal
meaning.  If this Lease is terminated
under the provisions of Article 22, or if Landlord shall reenter
the Premises under the provisions of this Article, or in the event of the
termination of this Lease, or of reentry, by or under any summary dispossess or
other proceeding or action or any provision of law by reason of default
hereunder on the part of Tenant, Tenant shall thereupon pay to Landlord the
Fixed Rent and Additional Charges payable up to the time of such termination of
this Lease, or of such recovery of possession of the Premises by Landlord, as
the case may be, and shall also pay to Landlord damages as provided in Article 24
hereof.

 

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

 

23.03                     If this Lease shall terminate under the provisions of Article 22
hereof, or if Landlord shall reenter the Premises under the provisions of this Article 23,
or in the event of the termination of this Lease, or of reentry, by or under
any summary dispossess or other proceeding or action or any provision of law by
reason of default hereunder on the part of Tenant, Landlord shall be entitled
to retain all monies, if any, paid by Tenant to Landlord, whether as advance
rent, security or otherwise, but such monies shall be credited by Landlord
against any Fixed Rent or 

 

64

 

Additional Charges due from Tenant at the time of such termination or
reentry or, at Landlord’s option, against any damages payable by Tenant under Article 24
hereof or pursuant to law.

 

ARTICLE 24

 

Damages

 

24.01                     If this Lease is terminated under the provisions of Article 22
hereof, or if Landlord shall reenter the Premises under the provisions of Article 23
hereof, or in the event of the termination of this Lease, or of reentry, by or
under any summary dispossess or other proceeding or action or any provision of
law by reason of default hereunder on the part of Tenant, Tenant shall pay to
Landlord as damages, at the election of Landlord, either:

 

(a)                                  a sum which at the time of such
termination of this Lease or at the time of any such reentry by Landlord, as
the case may be, represents the then value of the excess, if any (assuming a
discount at a rate per annum equal to the interest rate then applicable to seven
(7) year Federal Treasury Bonds), of (i) the aggregate amount of the
Fixed Rent and the Additional Charges under Article 3 hereof which
would have been payable by Tenant (conclusively presuming the average monthly
Additional Charges under Article 3 hereof to be the same as were
payable for the last twelve (12) calendar months, or if less than twelve (12)
calendar months have then elapsed since the Commencement Date, all of the
calendar months immediately preceding such termination or reentry) for the period
commencing with such earlier termination of this Lease or the date of any such
reentry, as the case may be, and ending with the date contemplated as the
expiration date hereof if this Lease had not so terminated or if Landlord had
not so reentered the Premises, over (ii) the aggregate fair market rental
value of the Premises for the same period, or

 

(b)                                 sums equal to the Fixed Rent and the
Additional Charges under Article 3 hereof which would have been
payable by Tenant had this Lease not so terminated, or had Landlord not so
reentered the Premises, payable upon the due dates therefor specified herein
following such termination or such reentry and until the date contemplated as
the expiration date hereof if this Lease had not so terminated or if Landlord had
not so reentered the Premises, provided,
however, that if Landlord shall
relet the Premises during said period, Landlord shall credit Tenant with the
net rents received by Landlord from such reletting, such net rents to be
determined by first deducting from the gross rents as and when received by
Landlord from such reletting the expenses incurred or paid by Landlord in
terminating this Lease or in reentering the Premises and in securing possession
thereof, as well as the expenses of reletting (but in
each case, only with respect to such time period between the date of the
termination due to default and what would have been the natural expiration of
the Term of the Lease had there been no such default), including, without limitation, altering
and preparing the Premises for new tenants, brokers’ commissions, reasonable
legal fees, and all other expenses properly chargeable against the Premises and
the rental therefrom, it being understood that any such reletting may be for a
period shorter or longer than the remaining term of this Lease; but in no event
shall Tenant be entitled to receive any excess of such net rents over the sums
payable by Tenant to Landlord hereunder, nor shall Tenant be entitled in any
suit for the collection of damages pursuant to this subdivision to a credit in
respect of any net rents from a reletting, except to the extent that such net
rents are actually received by Landlord. 
If the Premises or any part thereof should be relet in 

 

65

 

combination with other space, then proper apportionment on a square
foot basis shall be made of the rent received from such reletting and of the
expenses of reletting.

 

If the Premises or any
part thereof be relet by Landlord for the unexpired portion of the term of this
Lease, or any part thereof, before presentation of proof of such damages to any
court, commission or tribunal, the amount of rent reserved upon such reletting
shall, prima facie, be the fair and reasonable rental value for the Premises,
or part thereof, so relet during the term of the reletting.  Landlord shall not be liable in any way
whatsoever for its failure or refusal to relet the Premises or any part
thereof, or if the Premises or any part thereof are relet, for its failure to
collect the rent under such reletting, and no such refusal or failure to relet
or failure to collect rent shall release or affect Tenant’s liability for
damages or otherwise under this Lease.

 

24.02                     Suit or suits for the recovery of such damages, or any
installments thereof, may be brought by Landlord from time to time at its
election, and nothing contained herein shall be deemed to require Landlord to
postpone suit until the date when the term of this Lease would have expired if
it had not been so terminated under the provisions of Article 22
hereof, or had Landlord not reentered the Premises.  Nothing herein contained shall be construed
to limit or preclude recovery by Landlord against Tenant of any sums or damages
to which, in addition to the damages particularly provided above, Landlord may
lawfully be entitled by reason of any default hereunder on the part of
Tenant.  Nothing herein contained shall
be construed to limit or prejudice the right of Landlord to prove for and obtain
as damages by reason of the termination of this Lease or reentry on the
Premises for the default of Tenant under this Lease an amount equal to the
maximum allowed by any statute or rule of law in effect at the time when,
and governing the proceedings in which, such damages are to be proved whether
or not such amount be greater than any of the sums referred to in Section 24.01
hereof.

 

24.03                     In addition, if this Lease is terminated under the
provisions of Article 22 hereof, or if Landlord shall reenter the
Premises under the provisions of Article 23 hereof, Tenant agrees
that:

 

(a)                                  the Premises then shall be in the
condition in which Tenant has agreed to surrender the same to Landlord at the
expiration of the term hereof;

 

(b)                                 Tenant shall have performed prior to any
such termination any covenant of Tenant contained in this Lease for the making
of any Alterations or for restoring or rebuilding the Premises or the Building,
or any part thereof; and

 

(c)                                  for the breach of any covenant of Tenant
set forth above in this Section 24.03, Landlord shall be entitled
immediately, without notice or other action by Landlord, to recover, and Tenant
shall pay, as and for liquidated damages therefor, the cost of performing such
covenant (as estimated by an independent contractor selected by Landlord).

 

24.04                     In addition to any other remedies Landlord may have
under this Lease, and without reducing or adversely affecting any of Landlord’s
rights and remedies under Article 22, if any Fixed Rent, Additional
Charges or damages payable hereunder by Tenant to Landlord are not paid within
seven (7) days after the due date thereof, the same shall bear interest at
the rate of one and one-half (1 1⁄2%) percent per month or the maximum rate
permitted 

 

66

 

by law, whichever is less, from the due date thereof until paid, and
the amount of such interest shall be an Additional Charge hereunder.  For the purposes of this Section 24.04,
a rent bill sent by first class mail, to the address to which notices are to be
given under this Lease, shall be deemed a proper demand for the payment of the
amounts set forth therein (but nothing contained herein shall be deemed to
require Landlord to send any rent bill or otherwise make any demand for the
payment of rent except in those cases, if any, explicitly provided for in this
Lease).

 

ARTICLE 25

 

Affirmative Waivers

 

25.01                     Tenant, on behalf of itself and any and all persons
claiming through or under Tenant, does hereby waive and surrender all right and
privilege which it, they or any of them might have under or by reason of any
present or future law, to redeem the Premises or to have a continuance of this
Lease after being dispossessed or ejected therefrom by process of law or under
the terms of this Lease or after the termination of this Lease as provided in
this Lease.

 

25.02                     If Tenant is in arrears in payment of Fixed Rent or
Additional Charges, Tenant waives Tenant’s right, if any, to designate the
items to which any payments made by Tenant are to be credited, and Tenant
agrees that Landlord may apply any payments made by Tenant to such items as
Landlord sees fit, irrespective of and notwithstanding any designation or
request by Tenant as to the items which any such payments shall be credited.

 

25.03                     Landlord and Tenant hereby waive trial by jury in any
action, proceeding or counterclaim brought by either against the other on any
matter whatsoever arising out of or in any way connected with this Lease, the
relationship of Landlord and Tenant, Tenant’s use or occupancy of the Premises,
including, without limitation, any claim of injury or damage, and any emergency
and other statutory remedy with respect thereto.

 

25.04                     Tenant shall not interpose any counterclaim of any
kind in any action or proceeding commenced by Landlord to recover possession of
the Premises (other than compulsory counterclaims).

 

ARTICLE 26

 

No Waivers

 

26.01                     The failure of either party to insist in any one or
more instances upon the strict performance of any one or more of the
obligations of this Lease, or to exercise any election herein contained, shall
not be construed as a waiver or relinquishment for the future of the
performance of such one or more obligations of this Lease or of the right to
exercise such election, and such right to insist upon strict performance shall
continue and remain in full force and effect with respect to any subsequent
breach, act or omission.  The receipt by
Landlord of Fixed Rent or partial payments thereof or Additional Charges or
partial payments thereof with knowledge of breach by Tenant of any obligation
of this Lease shall not be deemed a waiver of such breach.

 

67

 

26.02                     Any option on the part of Tenant herein contained for
an extension or renewal hereof shall not be deemed to give Tenant any option
for a further extension beyond the first renewal or extended term.

 

ARTICLE 27

 

Curing Tenant’s Defaults

 

27.01                     If Tenant shall default in the performance of any of
Tenant’s obligations under this Lease, Landlord, any Superior Lessor or any
Superior Mortgagee without thereby waiving such default, may (but shall not be
obligated to) perform the same for the account and at the expense of Tenant,
without notice in a case of emergency, and in any other case only if such
default continues after the expiration of the applicable grace period, if
any.  If Landlord effects such cure by
bonding any lien which Tenant is required to bond, Tenant shall obtain and
substitute a bond for Landlord’s bond at its sole cost and expense and
reimburse Landlord for the cost of Landlord’s bond.

 

27.02                     Bills for any expenses incurred by Landlord or any
Superior Lessor or any Superior Mortgagee in connection with any such
performance by it for the account of Tenant, and bills for all costs, expenses
and disbursements of every kind and nature whatsoever, including reasonable
counsel fees, involved in collecting or endeavoring to collect the Fixed Rent
or Additional Charges or any part thereof or enforcing or endeavoring to
enforce any rights against Tenant or Tenant’s obligations hereunder, under or
in connection with this Lease or pursuant to law, including any such cost,
expense and disbursement involved in instituting and prosecuting summary
proceedings or in recovering possession of the Premises after default by Tenant
or upon the expiration or sooner termination of this Lease, and interest on all
sums advanced by Landlord or such Superior Lessor or Superior Mortgagee under
this Section 27.02 and/or Section 27.01 (at the
Interest Rate or the maximum rate permitted by law, whichever is less) may be
sent by Landlord or such Superior Lessor or Superior Mortgagee to Tenant
monthly, or immediately, at its option, and such amounts shall be due and
payable as Additional Charges in accordance with the terms of such bills.  Notwithstanding anything to the contrary
contained in this Section, Tenant shall have no obligation to pay Landlord’s
costs, expenses, or disbursements in any proceeding in which there shall have
been rendered a final judgment against Landlord.

 

ARTICLE 28

 

Broker

 

28.01                     Tenant covenants, warrants and represents that no
broker except Newmark Knight Frank (the “Broker”) was instrumental in
bringing about or consummating this Lease and that Tenant had no conversations
or negotiations with any broker except the Broker concerning the leasing of the
Premises.  Tenant agrees to indemnify and
hold harmless Landlord against and from any claims for any brokerage
commissions and all costs, expenses and liabilities in connection therewith,
including, without limitation, reasonable attorneys’ fees and expenses, arising
out of any conversations or negotiations had by Tenant with any broker other
than the Broker.  Landlord agrees to
indemnify and hold harmless Tenant against and from any claims for

 

68

 

any brokerage commissions and all costs, expenses and liabilities in
connection therewith, including, without limitation, reasonable attorneys’ fees
and expenses, arising out of conversations or negotiations had by Landlord with
any broker purporting to represent Tenant and with whom Tenant shall have had
no dealings.

 

ARTICLE 29

 

Notices

 

29.01                     Any notice, statement, demand, consent, approval or
other communication required or permitted to be given, rendered or made by
either party to this Lease or pursuant to any applicable law or requirement of
public authority (collectively, “notices”) shall be in writing (whether
or not so stated elsewhere in this Lease) and shall be deemed to have been
properly given, rendered or made only if sent by (i) registered or
certified mail, return receipt requested, posted in a United States post office
station or letter box in the continental United States, (ii) nationally
recognized overnight courier (e.g., Federal Express) with verification of
delivery requested or (iii) personal delivery with verification of
delivery requested, in any of such cases addressed as follows:

 

If to Landlord:

 

1114 6TH AVENUE CO. LLC

c/o Brookfield Properties Management LLC

Three World Financial Center

200 Vesey Street

New York, New York 10281-1021

Attention: Senior Vice President — Director of Leasing

 

with a
copy to:

 

1114 6TH AVENUE CO. LLC

c/o Brookfield Properties Management LLC

Three World Financial Center

200 Vesey Street

New York, New York 10281-1021

Attention: General Counsel

 

and if to Tenant as
follows:

 

Advent Software, Inc.

600 Townsend Street

San Francisco, California 94103

Attention:  Assistant Controller

 

with a
copy to:

 

Advent Software, Inc.

600 Townsend Street

San Francisco, California 94103

Attention:  Facilities Department

 

69

 

and shall be deemed to
have been given, rendered or made (x) if mailed, on the second Business
Day following the day so mailed, unless mailed to a location outside of the
State of New York, in which case it shall be deemed to have been given,
rendered or made on the third Business Day after the day so mailed, (y) if
sent by nationally recognized overnight courier, on the first Business Day
following the day sent or (z) if sent by personal delivery, when delivered
and receipted by the party to whom addressed (or on the date that such receipt
is refused, if applicable).  Either party
may, by notice as aforesaid, designate a different address or addresses for
notices intended for it.  Notwithstanding
the foregoing, with respect to an occurrence presenting imminent danger to the
health or safety of persons or damage to property in, on or about the Building,
notices may be given orally or as may otherwise may be practicable under the
circumstances.

 

29.02                     Notices hereunder from Landlord may be given by
Landlord’s managing agent, if one exists, or by Landlord’s attorney.  Notices hereunder from Tenant may be given by
Tenant’s attorney.  Notwithstanding the
provisions of this Article 29, bills and Landlord’s Statements may
be rendered by delivering them to Tenant at the addresses set forth in Section 29.01
by regular mail, without the necessity of a receipt.

 

29.03                     In addition to the foregoing, either Landlord or
Tenant may, from time to time, request in writing that the other party serve a
copy of any notice on one other person or entity designated in such request,
such service to be effected as provided in Section 29.01 or Section 29.02
hereof.

 

ARTICLE 30

 

Estoppel Certificates

 

30.01                     Each party agrees, at any time and from time to time,
as requested by the other party with not less than ten (10) Business Days
prior notice, to execute and deliver to the other a statement certifying that
this Lease is unmodified and in full force and effect (or if there have been
modifications, that the same is in full force and effect as modified and
stating the modifications), certifying the dates to which the Fixed Rent and
Additional Charges have been paid, stating whether or not, to the knowledge of
the signer, the other party is in default in performance of any of its obligations
under this Lease, and if so, specifying each such default of which the signer
shall have knowledge, and stating whether or not, to the knowledge of the
signer, any event has occurred which with the giving of notice or passage of
time, or both, would constitute such a default, and, if so, specifying each
such event, it being intended that any such statement delivered pursuant hereto
shall be deemed a representation and warranty to be relied upon by the party
requesting the certificate and by others with whom such party may be dealing,
regardless of independent investigation. 
Each party also shall include in any such statement such other
information concerning this Lease as the other party may reasonably request.

 

70

 

ARTICLE 31

 

Memorandum of Lease

 

31.01                     Tenant shall not record this Lease or any memorandum
thereof.

 

ARTICLE 32

 

No Representations by
Landlord

 

32.01                     Tenant expressly acknowledges and agrees that Landlord
has not made and is not making, and Tenant, in executing and delivering this
Lease, is not relying upon, any warranties, representations, promises or
statements, except to the extent that the same are expressly set forth in this
Lease or in any other written agreement which may be made between the parties
concurrently with the execution and delivery of this Lease and shall expressly
refer to this Lease.  All understandings
and agreements heretofore had between the parties are merged in this Lease and
any other written agreement(s) made concurrently herewith, which alone
fully and completely express the agreement of the parties and which are entered
into after full investigation, neither party relying upon any statement or
representation not embodied in this Lease or any other written agreement(s) made
concurrently herewith.

 

ARTICLE 33

 

Intentionally Omitted

 

ARTICLE 34

 

Holdover

 

34.01                     (a)                                  In the event this Lease is not renewed or
extended or a new lease is not entered into between the parties, and if Tenant
shall then hold over after the expiration of the term of this Lease, and if
Landlord shall then not proceed to remove Tenant from the Premises in the
manner permitted by law (or shall not have given written notice to Tenant that
Tenant must vacate the Premises) irrespective of whether or not Landlord
accepts rent from Tenant for a period beyond the Expiration Date, the parties
hereby agree that Tenant’s occupancy of the Premises after the expiration of
the term shall be upon all of the terms set forth in this Lease except Tenant
shall pay on the first day of each month of the holdover period as Fixed Rent,
an amount equal to (x) one hundred fifty percent (150%) of the monthly
Fixed Rent and Additional Charges payable by Tenant during the last month of
the term of this Lease for the first thirty (30) days of such hold over (pro
rated on a per diem basis), and (y) two
hundred percent (200%) of the monthly Fixed Rent and Additional Charges payable
by Tenant during the last month of the term of this Lease for each month or
portion of a month (without daily proration) during the remainder of such
holdover.  Further, Landlord shall not be
required to perform any work, furnish any materials or make any repairs within
the Premises during the holdover period. 
It is further stipulated and agreed that if Landlord shall, at any time
after the expiration of the original term or after the expiration of any term
created thereafter, proceed to remove Tenant from the Premises as a holdover,
the Fixed Rent for the use and occupancy of the Premises during any

 

71

 

holdover period shall be calculated in the same manner as set forth
above.  In addition to the foregoing,
Landlord shall be entitled to recover from Tenant any losses or damages arising
from such holdover as provided in Section 34.01(c) hereof.

 

(b)                                 Notwithstanding anything to the contrary
contained in this Lease, the acceptance of any rent paid by Tenant pursuant to Section 34.01(a) above
shall not preclude Landlord from commencing and prosecuting a holdover or
summary eviction proceeding, and the preceding sentence shall be deemed to be
an “agreement expressly providing otherwise” within the meaning of Section 223-c
of the Real Property Law of the State of New York.

 

(c)                                  If Tenant shall hold-over or remain in
possession of any portion of the Premises beyond the Expiration Date, Tenant
shall be subject not only to summary proceeding and all damages related
thereto, but, if such holding over exceeds sixty (60) days,  also to any damages arising out of any lost
opportunities (and/or new leases) by Landlord to re-let the Premises (or any
part thereof).  All damages to Landlord
by reason of such holding over by Tenant may be the subject of a separate
action and need not be asserted by Landlord in any summary proceedings against
Tenant.

 

ARTICLE 35

 

Miscellaneous Provisions
and Definitions

 

35.01                     No agreement shall be effective to change, modify,
waive, release, discharge, terminate or effect an abandonment of this Lease, in
whole or in part, including, without limitation, this Section 35.01,
unless such agreement is in writing, refers expressly to this Lease and is
signed by the party against whom enforcement of the change, modification,
waiver, release, discharge, termination or effectuation of the abandonment is sought
(or in the case of a change or modification, unless such agreement is signed by
both Landlord and Tenant).  If Tenant
shall at any time request Landlord to sublet the Premises for Tenant’s account,
Landlord or its agent is authorized to receive keys for such purposes without
releasing Tenant from any of its obligations under this Lease, and Tenant
hereby releases Landlord of any liability for loss or damage to any of Tenant’s
Property in connection with such subletting unless caused by or resulting from
the negligence or willful act of Landlord, its agents, servants, contractors,
or employees.

 

35.02                     Except as otherwise expressly provided in this Lease,
the obligations of this Lease shall bind and benefit the successors and assigns
of the parties hereto with the same effect as if mentioned in each instance
where a party is named or referred to; provided,
however, that (a) no
violation of the provisions of Article 7 shall operate to vest any
rights in any successor or assignee of Tenant and (b) the provisions of
this Article 35 shall not be construed as modifying the conditions
of limitation contained in Article 22.

 

35.03                     Tenant shall look only to Landlord’s estate and
property in the Land and the Building (and the sale and rental proceeds
therefrom) for the satisfaction of Tenant’s remedies, for the collection of a
judgment (or other judicial process) requiring the payment of money by Landlord
in the event of any default by Landlord hereunder, and no other property or
assets of Landlord or its members, partners, officers, directors, shareholders
or principals,

 

72

 

disclosed or undisclosed, shall be subject to levy, execution or other
enforcement procedure for the satisfaction of Tenant’s remedies under or with
respect to this Lease, the relationship of Landlord and Tenant hereunder or
Tenant’s use or occupancy of the Premises.

 

35.04                     (a)                                  Except as expressly provided in Section 35.04(b) and
Articles 19 and 20 hereof, the obligations of Tenant hereunder shall in
no way be affected, impaired or excused, nor shall Landlord have any liability
whatsoever to Tenant, nor shall it be deemed a constructive eviction because (i) Landlord
is unable to fulfill, or is delayed in fulfilling, any of its obligations under
this Lease by reason of strike, lock-out or other labor trouble, governmental
preemption of priorities or other controls in connection with a national or
other public emergency or shortages of fuel, supplies or labor resulting
therefrom, or any other cause, whether similar or dissimilar, beyond Landlord’s
reasonable control; or (ii) of any failure or defect in the supply,
quantity or character of electricity or water furnished to the Premises, by
reason of any requirement, act or omission of the public utility or others
serving the Building with electric energy, steam, oil, gas or water, or for any
other reason whether similar or dissimilar, beyond Landlord’s reasonable
control (the foregoing circumstances described in this Section 35.04(a),
“Force Majeure Causes”).  Without
limiting events that may constitute “or any other cause, whether similar or
dissimilar, beyond Landlord’s reasonable control,” the following are items
which Landlord and Tenant agree are beyond Landlord’s reasonable control:

 

(A)                              Lack of access to the Building or the
Premises beyond the reasonable control of and not otherwise caused by Landlord
(which shall include, but not be limited to, the lack of access to the Building
or the Premises when it or they are structurally sound but inaccessible due to
evacuation of the surrounding area or damage to nearby structures or public
areas);

 

(B)                                Any cause outside the Building not caused
by Landlord;

 

(C)                                Reduced air quality or other contaminants
within the Building beyond the reasonable control of and not otherwise caused
by Landlord that would adversely affect the Building or its occupants
(including, but not limited to, the presence of biological or other airborne
agents within the Building or the Premises);

 

(D)                               Disruption of mail and deliveries to the
Building or the Premises resulting from a casualty; and

 

(E)                                 Blockages of any windows, doors, or
walkways to the Building or the Premises resulting from a casualty.

 

(b)                                 Notwithstanding anything to the contrary
contained in this Lease, but subject to the provisions of Articles 19 and 20
hereof to the extent applicable, if for a period of ten (10) consecutive
days (i) Landlord fails to provide services required under this Lease to
be provided to the Premises or (ii) Landlord fails to make the repairs
required under this Lease to be made by Landlord, and (w) the cause of
such failure shall not be Force Majeure Causes or the act or omission of
Tenant, its agents, representatives, contractors or employees, and (x) the
Premises shall be rendered untenantable and (y) Tenant shall vacate such
portion of the Premises and (z) Tenant shall concurrently therewith give
notice of such fact to Landlord, then, in such event, the

 

73

 

Fixed Rent and Additional Charges payable pursuant to Article 3
of this Lease for such portion of the Premises shall be abated for the period
commencing on the day immediately succeeding the expiration of such ten (10) consecutive
day period and ending on the date that the Premises (or such portion thereof)
shall be rendered tenantable (or such earlier date, if any, as Tenant shall
reoccupy the same for the conduct of its business).

 

(c)                                  Notwithstanding anything to the contrary
contained in this Lease, in the event that both of the Building’s freight
elevators shall not be operable for a period of two (2) consecutive
Business Days during the performance of Tenant’s Work, provided
that (i) Tenant shall have ceased all performance of Tenant’s
Work as a result thereof, (ii) Tenant shall have concurrently given notice
of such fact to Landlord, and (iii) the completion of Tenant’s Work shall
in fact have been delayed by such interruption, then, in such event, the Rent
Commencement Date shall be extended by one (1) day for each day of such
delay in the performance of Tenant’s Work until the earlier of (x) the
date freight elevator service shall be restored (through either the repair of
at least one of the Building’s freight elevators or the conversion of one of
the Building’s passenger elevators for temporary use as a freight elevator) and
(y) the date Tenant shall resume the performance of Tenant’s Work.

 

35.05                     For the purposes of this Lease, the following terms
have the meanings indicated:

 

(a)                                  The term “Mortgage” shall include
a mortgage and/or a deed of trust, and the term “Holder of a Mortgage”
or “Mortgagee” or words of similar import shall include a Mortgagee of a
Mortgage or a beneficiary of a deed of trust.

 

(b)                                 The term “Insurance Requirements”
and words of similar import shall mean rules, regulations, orders and other
requirements of the New York Board of Underwriters and/or the New York Fire
Insurance Rating Organization and/or any other similar body performing the same
or similar functions and having jurisdiction or cognizance over the Building and/or
the Premises, whether now or hereafter in force.

 

(c)                                  The term “Tenant” shall mean the
Tenant herein named or any assignee or other successor in interest (immediate
or remote) of the Tenant herein named, which at the time in question is the
owner of the Tenant’s estate and interest granted by this Lease; but the
foregoing provisions of this subsection shall not be construed to permit any
assignment of this Lease or to relieve the Tenant herein named or any assignee
or other successor in interest (whether immediate or remote) of the Tenant
herein named from the full and prompt payment, performance and observance of
the covenants, obligations and conditions to be paid, performed and observed by
Tenant under this Lease.

 

(d)                                 The term “Landlord” shall mean
only the owner at the time in question of Landlord’s interest in the Land or a
lease of the Land and the Building or a lease thereof  so that in the event of any transfer or
transfers of Landlord’s interest in the Land or a lease thereof or the Building
the transferor shall be and hereby is relieved and freed of all obligations of
Landlord under this Lease accruing after such transfer, and it shall be deemed,
without further agreement that such transferee has assumed and agreed to
perform and observe

 

74

 

all obligations of Landlord herein accruing during the period it is the
holder of Landlord’s interest under this Lease.

 

(e)                                  The terms “herein,” hereof”
and “hereunder,” and words of similar import, shall be construed to
refer to this Lease as a whole, and not to any particular article or Section,
unless expressly so stated.

 

(f)                                    The term “and/or” when applied to
one or more matters or things shall be construed to apply to any one or more or
all thereof as the circumstances warrant at the time in question.

 

(g)                                 The term “person” shall mean any
natural person or persons, a partnership, a corporation, and any other form of
business or legal association or entity.

 

(h)                                 The terms “Landlord shall have no
liability to Tenant” or “the same shall be without liability to Landlord”
or “without incurring any liability to Tenant therefor”, or words of
similar import shall mean that Tenant is not entitled to terminate this Lease
except pursuant to rights to terminate specifically set forth in this Lease, or
to claim actual or constructive eviction, partial, or total, or to receive any
abatement or diminution of rent except where specifically set forth in this
Lease, or to be compensated for loss or injury suffered or to enforce any other
right or kind of liability whatsoever against Landlord under or with respect to
this Lease or with respect to Tenant’s use or occupancy of the Premises.

 

(i)                                     The term “Interest Rate,” when
used in this Lease, shall mean an interest rate equal to two percent (2%) above
the so-called annual “Base Rate” of interest established and approved by
Citibank, N.A., New York, New York (or its successor), from time to time, as
its interest rate charged for unsecured loans to its corporate customers, but in
no event greater than the highest lawful rate from time to time in effect.

 

(j)                                     The term “Legal Requirements” and
words of a similar import shall mean laws and ordinances (including, without
limitation, The Americans with Disabilities Act of 1990, as amended) of any or
all of the federal, state, city, town, county, borough and village governments
and rules, regulations, orders and directives of any and all departments,
subdivisions, bureaus, agencies or offices thereof, and of any other
governmental, public or quasi-public authorities having jurisdiction over the
Building and/or the Premises, and the direction of any public officer pursuant
to law, whether now or hereafter in force.

 

35.06                     Upon the expiration or other termination of this Lease
neither party shall have any further obligation or liability to the other
except as otherwise expressly provided in this Lease and except for such
obligations as by their nature or under the circumstances can only be, or by
the provisions of this Lease, may be, performed after such expiration or other
termination; and, in any event, unless otherwise expressly provided in this
Lease, any liability for a payment (including, without limitation, Additional
Charges under Article 3) which shall have accrued to or with respect
to any period ending at the time of expiration or other termination of this
Lease shall survive the expiration or other termination of this Lease.

 

35.07                     (a)                                  If Tenant shall request Landlord’s
consent and Landlord shall fail or refuse to give such consent, Tenant shall
not be entitled to any damages for any withholding

 

75

 

by Landlord of its consent, it being intended that Tenant’s sole remedy
shall be an action for specific performance or injunction, and that such remedy
shall be available only in those cases where Landlord has expressly agreed in
writing not to unreasonably withhold its consent or where as a matter of law
Landlord may not unreasonably withhold its consent.

 

(b)                                 If Tenant desires to determine any
dispute between Landlord and Tenant as to the reasonableness of Landlord’s
decision to refuse to consent or approve any item as to which Landlord has
specifically agreed that its consent or approval shall not be unreasonably
withheld, such dispute shall be settled and finally determined by arbitration
in the City of New York in accordance with the following provisions of this Section 35.07(b).  Within seven (7) Business Days next
following the giving of any notice by Tenant stating that it wishes such
dispute to be so determined, Landlord and Tenant shall each give notice to the
other setting forth the name and address of an arbitrator designated by the
party giving such notice.  If the two
arbitrators shall fail to agree upon the designation of a third arbitrator
within five (5) Business Days after the designation of the second
arbitrator then either party may apply to the AAA in New York City (or any
successor thereto) for the designation of such arbitrator and if he or she is
unable or refuses to act within seven (7) Business Days, then either party
may apply to the Supreme Court in New York County, New York (or to any other
court having jurisdiction and exercising functions similar to those now
exercised by said Court) for the designation of such arbitrator.  The three arbitrators shall conduct such
hearings as they deem appropriate, making their determination in writing and
giving notice to Landlord and Tenant of their determination as soon as
practicable, and if possible, within five (5) Business Days after the
designation of the third arbitrator; the concurrence of or, in the event no two
of the arbitrators shall render a concurring determination, then the
determination of the third arbitrator designated, shall be binding upon
Landlord and Tenant.  Landlord and Tenant
hereby (i) agree that any decision rendered in any arbitration held
pursuant to this Section 35.07(b) shall be final and binding
upon Landlord and Tenant, whether or not a judgment shall be entered in any
court, and (ii) consent to the entry of any such order of judgment.  Each party shall pay its own counsel fees and
expenses, if any, in connection with any arbitration under this Section 35.07(b),
including the expenses and fees of any arbitrator selected by it in accordance
with the provisions of this Section 35.07(b), and the parties shall
share all other expenses and fees of any such arbitration.  The arbitrators shall be bound by the
provisions of this Lease, and shall not add to, subtract from or otherwise
modify such provisions.  The sole remedy
which may be awarded by the arbitrators in any proceeding pursuant to this Section 35.07
is an order compelling Landlord to consent to or approve the matter in dispute,
and the arbitrators may not award damages or grant any monetary award or any
other form of relief.

 

35.08                     If an excavation shall be made upon land adjacent to
or under the Building, or shall be authorized to be made, Tenant shall afford
to the person causing or authorized to cause such excavation, license to enter
the Premises for the purpose of performing such work as said person shall deem
necessary or desirable to preserve and protect the Building from injury or
damage to support the same by proper foundations, without any claim for damages
or liability against Landlord and without reducing or otherwise affecting
Tenant’s obligations under this Lease.

 

35.09                     The submission by Landlord of the Lease in draft form
shall be deemed submitted solely for Tenant’s consideration and not for
acceptance and execution.  Such

 

76

 

submission shall have no binding force or effect and shall confer no
rights nor impose any obligations, including brokerage obligations, on either
party unless and until both Landlord and Tenant shall have executed the Lease
and duplicate originals thereof shall have been delivered to the respective
parties.

 

35.10                     Irrespective of the place of execution or performance,
this Lease shall be governed by and construed in accordance with the laws of
the State of New York.  If any provisions
of this Lease or the application thereof to any person or circumstance shall,
for any reason and to any extent, be invalid or unenforceable, the remainder of
this Lease and the application of that provision to other persons or circumstances
shall not be affected but rather shall be enforced to the extent permitted by
law.  The table of contents, captions,
headings and titles in this Lease are solely for convenience of references and
shall not affect its interpretation. 
This Lease shall be construed without regard to any presumption or other
rule requiring construction against the party causing this Lease to be
drafted.  Each covenant, agreement,
obligation or other provision of this Lease on Tenant’s part to be performed,
shall be deemed and construed as a separate and independent covenant of Tenant,
not dependent on any other provision of this Lease.  All terms and words used in this Lease, shall
be deemed to include any other number and any other gender as the context may
require.

 

35.11                     If under the terms of this Lease Tenant is obligated
to pay Landlord a sum in addition to the Fixed Rent under the Lease and no
payment period therefor is specified, Tenant shall pay Landlord the amount due
within thirty (30) days after being billed.

 

35.12                     Notwithstanding anything to the contrary contained in
this Lease, during the continuance of any default by Tenant after the giving of
notice and the expiration of any applicable grace periods hereunder, Tenant
shall not be entitled to exercise any rights or options, or to receive any
funds or proceeds being held, under or pursuant to this Lease.

 

35.13                     Tenant represents and warrants that this Lease has
been duly authorized, executed and delivered by Tenant.

 

35.14                     Tenant acknowledges that it has no rights to any
development rights, “air rights” or comparable rights appurtenant to the Real
Property, and consents, without further consideration, to any utilization of
such rights by Landlord and agrees to promptly execute and deliver any
instruments which may be requested by Landlord, including instruments merging
zoning lots, evidencing such acknowledgment and consent.  The provisions of this Section 35.14
shall be deemed to be and shall be construed as an express waiver by Tenant of
any interest Tenant may have as a “party in interest” (as such quoted term is
defined in Section 12-10 Zoning Lot of the Zoning Resolution of the City
of New York) in the Real Property.

 

35.15                     If any sales or other tax is payable with respect to
any cleaning or other services which Tenant obtains or contracts for directly
from any third party or parties, Tenant shall file any required tax returns and
shall pay any such tax, and Tenant shall indemnify and hold Landlord harmless
from and against any loss, damage or liability suffered or incurred by Landlord
on account thereof.

 

35.16                     Intentionally omitted.

 

77

 

35.17                     Notwithstanding anything to the contrary contained in
this Lease, any option or right to extend or renew the original term of this
Lease and any option or right to add additional space to the Premises
originally demised hereunder (collectively, “Tenant’s Options”) shall,
in the event any of Tenant’s Options is expressly set forth in this Lease,
inure exclusively to the benefit of the Tenant named herein (or a Tenant
Successor) and shall be exercisable only by the Tenant named herein (or a
Tenant Successor).

 

35.18                     (A)                              Tenant represents that as of the date of
this Lease, and Tenant covenants that throughout the term of this Lease:  (a) Tenant is not, and shall not be, an
Embargoed Person (as defined below); (b) none of the funds or other assets
of Tenant are or shall constitute property of, or are or shall be beneficially
owned, directly or indirectly, by any Embargoed Person; (c) no Embargoed
Person shall have any interest of any nature whatsoever in Tenant, with the
result that the investment in Tenant (whether directly or indirectly) is or
would be blocked or prohibited by law or that this Lease and performance of the
obligations hereunder are or would be blocked or in violation of law; (d) none
of the funds of Tenant are, or shall be derived from, any activity with the
result that the investment in Tenant (whether directly or indirectly) is or
would be blocked or in violation of law or that this Lease and performance of
the obligations hereunder are or would be in violation of law; and (e) Tenant
shall not permit the Premises, or any portion thereof, to be used or occupied
by or for the benefit of any Embargoed Person. 
The term “Embargoed Person” shall, for the purposes hereof, mean
a person, entity or government (i) identified on the Specially Designated
Nationals and Blocked Persons List maintained by the United States Treasury
Department Office of Foreign Assets Control and/or any similar list maintained
pursuant to any authorizing statute, executive order or regulation and/or (ii) subject
to trade restrictions under United States law, including, without limitation,
the International Emergency Economic Powers Act, 50 U.S.C. § 1701 et seq., The
Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Orders
or regulations promulgated under any such laws, with the result that the
investment in Tenant (whether directly or indirectly), is or would be
prohibited by law or this Lease is or would be in violation of law and/or (iii) subject
to blocking, sanction or reporting under the USA Patriot Act, as amended;
Executive Order 13224, as amended; Title 31, Parts 595, 596 and 597 of the U.S.
Code of Federal Regulations, as they exist from time to time; and any other law
or Executive Order or regulation through which the United States Department of
the Treasury has or may come to have sanction authority.  If any representation made by Tenant pursuant
to this Section 35.18(A) shall become untrue Tenant shall
within ten (10) days give written notice thereof to Landlord, which notice
shall set forth in reasonable detail the reason(s) why such representation
has become untrue and shall be accompanied by any relevant notices from, or
correspondence with, the applicable governmental agency or agencies.

 

(B)                                Landlord represents that as of the date
of this Lease, and Landlord covenants that throughout the term of this
Lease:  (a) Landlord is not, and
shall not be, an Embargoed Person (as defined below); (b) none of the
funds or other assets of Landlord are or shall constitute property of, or are
or shall be beneficially owned, directly or indirectly, by any Embargoed
Person; (c) no Embargoed Person shall have any interest of any nature
whatsoever in Landlord, with the result that the investment in Landlord
(whether directly or indirectly) is or would be blocked or prohibited by law or
that this Lease and performance of the obligations hereunder are or would be
blocked or in violation of law; and (d) none of the funds of Landlord are,
or shall be derived from, any activity with the result that the investment in
Landlord

 

78

 

(whether directly
or indirectly) is or would be blocked or in violation of law or that this Lease
and performance of the obligations hereunder are or would be in violation of
law.

 

35.19                     Tenant shall not use, and shall cause each of its
Affiliates not to use, the name or likeness of the Building in any advertising
(by whatever medium) without Landlord’s consent.

 

35.20                     If either Landlord or Tenant shall bring any action or
legal proceeding for an alleged breach of any provision of this Lease, to
recover rent, to terminate this Lease or otherwise to enforce, protect or establish
any term or covenant of this Lease, the prevailing party shall be entitled to
recover reasonable attorney’s fees, court costs, and expert fees as may be
fixed by the court.

 

ARTICLE 36

 

Renewal Option

 

36.01                     (a)                                  Provided that (i) this Lease is in
full force and effect as of the date of the Renewal Notice (as such term is
hereinafter defined), and (ii) Tenant shall not be in default beyond any
applicable notice and grace period under this Lease, and (iii) Tenant
and/or Tenant Affiliates shall physically occupy at least seventy-five percent
(75%) of the rentable area of the Premises, the Tenant named in this Lease (or
a Tenant Successor) shall have one option to extend the Term of this Lease for
an additional term of five (5) years (the “Renewal Term”)
commencing on the day after the Expiration Date.  Tenant’s option with respect to the Renewal
Term shall be exercisable by written notice (the “Renewal Notice”) to
Landlord given not later than fifteen (15) months prior to the Expiration
Date.  The Renewal Term shall constitute
an extension of the initial Term of this Lease and shall be upon all of the
same terms and conditions as the initial Term, except that (i) there shall
be no further option to renew the Term of this Lease, (ii) Landlord shall
not be required to furnish any materials or perform any work to prepare the
Premises for Tenant’s occupancy and Landlord shall not be required to make any
Landlord contribution or work allowance or reimburse Tenant for any Alterations
made or to be made by Tenant, or grant Tenant any rent concession, (iii) the
Fixed Rent for the Renewal Term shall be as determined pursuant to the
provisions of Sections 36.01(b), (c) and (d), and shall commence on
the first day of the Renewal Term, (iv) the Base Tax Amount for the
Renewal Term shall be the Taxes for the Tax Year during which the commencement
of the Renewal Term occurs, and (v) the Base Operating Year for the
Renewal Term shall be the Operating Year during which the commencement of the
Renewal Term occurs.

 

(b)                                 The annual Fixed Rent for the Premises
for the Renewal Term shall be the Fair Market Rent.  “Fair Market Rent” means the fixed
annual rent that a willing lessee would pay pursuant to a direct lease and a
willing lessor would accept for the Premises during the Renewal Term, pursuant
to a direct lease, determined on the basis of then current prevailing rent in
the Building and other Class-A buildings in midtown Manhattan for comparable
space on a direct lease basis, taking into account all then relevant factors including,
without limitation, market concessions, whether favorable to Landlord or
Tenant.

 

79

 

(c)                                  If Tenant timely exercises the renewal
option pursuant to this Section 36.01, Landlord shall notify Tenant
(the “Rent Notice”) at least four (4) months before the last day of
the initial Term of Landlord’s determination of the Fair Market Rent (“Landlord’s
Determination”).  Tenant shall notify
Landlord (“Tenant’s Notice”), within thirty (30) days after Tenant’s
receipt of the Rent Notice, whether Tenant accepts or disputes Landlord’s
Determination, and if Tenant disputes Landlord’s Determination, Tenant’s Notice
shall set forth Tenant’s determination (“Tenant’s Determination”) of the
Fair Market Rent.  If Tenant fails to
give Tenant’s Notice within such thirty (30) day period, Tenant shall be deemed
to have accepted Landlord’s Determination.

 

(d)                                 If Tenant timely disputes Landlord’s
Determination, and Landlord and Tenant fail to agree as to the Fair Market Rent
within thirty (30) days after the giving of Tenant’s Notice, then the Fair
Market Rent shall be determined as follows:

 

(i)                                     Three (3) arbitrators, each having
not less than ten (10) years experience in the leasing of first-class
office space in midtown Manhattan (the “Baseball Arbitrators”) shall be
selected or designated as follows:

 

(A)                              Landlord and Tenant shall, within ten (10) days,
each appoint a senior officer of a recognized New York City leasing brokerage
firm to act as an arbitrator on its behalf and at its expense; provided,
however, that if either party fails to timely appoint an arbitrator, the party
that appointed the first arbitrator shall be entitled to appoint a second
arbitrator at the other party’s expense;

 

(B)                                Within ten (10) days after the
appointment of the second arbitrator pursuant to Section 36.01(d)(i)(A) hereof,
the arbitrators thus appointed shall appoint a third senior officer of a
recognized New York City leasing brokerage firm to act as an impartial third
arbitrator to be paid jointly by Landlord and Tenant; and

 

(C)                                If the arbitrators appointed by the
parties shall be unable to agree, within ten (10) days after the appointment
of the second arbitrator, upon the appointment of a third arbitrator, they
shall give written notice to the parties of such failure to agree, and, if the
parties fail to agree upon the selection of such third arbitrator within ten (10) days
after the arbitrators appointed by the parties give notice as aforesaid, then
the third arbitrator shall be designated by the AAA.

 

(ii)                                  Landlord and Tenant shall each submit to
the Baseball Arbitrators selected or designated in accordance with the
provisions of Section 36.01(d)(i) hereof, and to the other, (A) Landlord’s
determination of the Fair Market Rent of the Premises (B) Tenant’s
determination of the Fair Market Rent of the Premises (which amounts may be
different from those submitted by the parties pursuant to Section 36.01(c))
and (C) written evidence in support of such determination as such party
desires.

 

(iii)                               Each of the Baseball Arbitrators shall determine which
of the two (2) rent determinations submitted in accordance with the
provisions of Section 36.01(d)(ii) hereof more closely
represents the Fair Market Rent of the Premises.  The Baseball Arbitrators may not select any
other rental value for the Premises other than one

 

80

 

submitted by Landlord or Tenant. 
The agreed determination of at least two (2) of the three (3) Baseball
Arbitrators shall be binding upon Landlord and Tenant and shall serve as the
basis for the determination of the Fixed Rent payable for the Renewal Term,
subject to further adjustment as provided in this Lease.  After a determination has been made of the
Fair Market Rent, the parties shall execute and deliver an instrument setting
forth the Fair Market Rent, but the failure to so execute and deliver any such
instrument shall not affect the determination of Fair Market Rent.

 

(e)                                  If Tenant disputes Landlord’s
Determination and if the final determination of Fair Market Rent shall not be
made on or before the first day of the Renewal Term then, pending such final
determination, Tenant shall pay, as Fixed Rent for the Renewal Term, an amount
equal to Landlord’s Determination.  If,
based upon the final determination of the Fair Market Rent, the Fixed Rent
payments made by Tenant for such portion of the Renewal Term were (i) less
than the Fair Market Rent payable for the Renewal Term, Tenant shall pay to
Landlord the amount of such deficiency within ten (10) days after demand
therefor or (ii) greater than the Fair Market Rent payable for the Renewal
Term, Landlord shall credit the amount of such excess against installments of
Fixed Rent and/or Additional Charges payable by Tenant next coming due.

 

(f)                                    It is an express condition of the option
granted to Tenant pursuant to the terms of this Section 36.01 that
time is of the essence with respect to Tenant’s exercise of such option by the
date specified in this Section 36.01.

 

ARTICLE 37

 

Offer Space Option

 

37.01                    (a)                                   As used herein:

 

“Available”
means, as to any space, that such space is vacant and free of any present or
future possessory right now or hereafter existing in favor of any third
party.  Anything to the contrary
contained herein notwithstanding, Tenant’s right of first offer pursuant to
this Section 37.01 is subordinate to the rights of Ericsson Inc.
existing as of the date of this Lease.

 

“Offer
Space” means, subject to the rights of Ericsson Inc. existing as of the
date of this Lease and subject to Landlord’s initial leasing of that portion of
the 34th floor of the Building hatched on Exhibit I annexed, the entire 34th floor of the
Building, substantially as shown on the floor plans attached hereto as Exhibit I and made a part
hereof.  As hereinafter used in this Section 37.01,
the terms “such Offer Space” and “applicable Offer Space” and “Offer
Space”, where the context so requires, shall refer to the particular
portion of the entire Offer Space that is set forth in the applicable Offer
Notice from time to time.

 

(b)                                 Provided (i) this Lease shall not
have been terminated, (ii) Tenant shall not be in default beyond any
applicable notice and grace period provided under this Lease, (iii) as of
the Anticipated Inclusion Date, there shall be at least three (3) years
remaining in the initial Term or the Renewal Term if Tenant shall have exercised
its Renewal Option, and

 

81

 

(iv) Tenant and/or Tenant Affiliates shall physically occupy at
least seventy-five percent (75%) of the rentable area of the Premises, the
Tenant named in this Lease (or a Tenant Successor) shall have the option to lease the Offer Space
when such space becomes, or Landlord reasonably anticipates when such space
will become, Available.  When the Offer
Space becomes, or Landlord reasonably anticipates that such space will become,
Available, Landlord shall give to Tenant notice (an “Offer Notice”)
thereof, specifying (A) the location and rentable square footage of such
Offer Space and (B) the date or estimated date that such Offer Space has
or shall become Available (the “Anticipated Inclusion Date”); provided, however, that Landlord shall not deliver an Offer
Notice to Tenant more than fifteen (15) months prior to the Anticipated
Inclusion Date for such Offer Space. 
Each Offer Notice shall also contain information as to the amount of
condenser water to be made available for Tenant’s use in the applicable Offer
Space, which Landlord confirms shall be not less than twenty (20) tons in the
event that the Offer Space shall consist of the entire rentable area of the 34th floor of the
Building.

 

(c)                                  Provided that on the date that Tenant
exercises the Offer Space Option and on the Offer Space Inclusion Date (as
hereinafter defined) (i) this Lease shall not have been terminated, (ii) Tenant
shall not be in default beyond any applicable notice and grace period provided
under this Lease, (iii) at the time that Tenant exercises the Offer Space
Option and on the Anticipated Inclusion Date, there shall be at least three (3) years
remaining in the initial Term or the Renewal Term if Tenant shall have
exercised its Renewal Option, and (iv) Tenant and its Affiliates shall
physically occupy at least seventy-five percent (75%) of the rentable area of
the Premises, Tenant shall have the option (the “Offer Space Option”),
exercisable by notice (an “Acceptance Notice”) given to Landlord on or
before the date that is twenty (20) days after the giving of the Offer Notice
(time being of the essence) to include the Offer Space in the Premises.  Tenant shall not have the option to include
in the Premises less than the entire Offer Space described in the Offer
Notice.  The Fixed Rent with respect to
such Offer Space shall be the Fair Offer Rental (as hereinafter defined) for
such Offer Space, which Fixed Rent shall be determined as of the Anticipated
Inclusion Date and shall be set forth in a written notice (the “Offer Rent
Notice”) given to Tenant on the later to occur of (x) the date which
is no later than ninety (90) days prior to the Anticipated Inclusion Date for
such Offer Space, or (y) the date Landlord sends the Offer Notice to
Tenant for such Offer Space.  Landlord’s
determination of the Fair Offer Rental as set forth in the Offer Rent Notice is
hereinafter referred to as “Landlord’s Offer Determination”.  “Fair Offer Rental” means the fixed
annual rent that a willing lessee would pay and a willing lessor would accept
for the applicable Offer Space, taking into account all relevant factors.  Tenant shall deliver written notice to
Landlord (“Tenant’s Rent Notice”) within thirty (30) days after Landlord’s
delivery of the Offer Rent Notice whether Tenant accepts or disputes Landlord’s
Offer Determination, and if Tenant disputes Landlord’s Offer Determination, the
Tenant’s Rent Notice shall set forth Tenant’s good faith determination of the
Fair Offer Rental for such Offer Space, which shall constitute the minimum that
Tenant can claim as the Fair Offer Rental for such space in any arbitration
thereof (“Tenant’s Minimum Offer Determination”).  If Tenant fails to send Tenant’s Rent Notice
with the thirty (30) day period, or fails to object to Landlord’s Offer
Determination in Tenant’s Rent Notice and to set forth therein Tenant’s Minimum
Offer Determination, then Tenant shall be deemed to have accepted Landlord’s
Offer Determination as the Fair Offer Rental for such Offer Space.

 

82

 

(d)                                 If Tenant timely delivers the Acceptance
Notice, then, on the date on which Landlord delivers vacant possession of the
Offer Space to Tenant (the “Offer Space Inclusion Date”), the Offer
Space shall become part of the Premises, upon all of the terms and conditions
set forth in this Lease, except (i) Fixed Rent shall be equal to the Fair
Offer Rental, (ii) Tenant’s Tax Share with respect to such Offer Space
shall be a fraction, expressed as a percentage, the numerator of which is the
number of rentable square feet in the Offer Space and the denominator of which
is the number of rentable square feet in the Building (excluding storage space
(if any)), measured according to the same methodology Landlord used to measure
the size of the Offer Space, (iii) Tenant’s Operating Share with respect
to such Offer Space shall be a fraction, expressed as a percentage, the
numerator of which is the number of rentable square feet in the Offer Space and
the denominator of which is the number of rentable square feet of office space
in the Building (excluding the retail space on the ground floor), measured
according to the same methodology Landlord used to measure the size of the
Offer Space, (iv) the Base Tax Amount with respect to such Offer Space shall
be the Taxes for the Tax Year during which the Anticipated Inclusion Date
occurs, (v) the Base Operating Year with respect to such Offer Space shall
be the Operating Year during which the Anticipated Inclusion Date occurs, (vi) Landlord
shall not be required to perform any Landlord’s Work or any other work, pay a
Landlord’s contribution or a Work Allowance or any other amount, or render any
services to make the Building or the Offer Space ready for Tenant’s use or
occupancy, and Tenant shall accept the Offer Space in its “as is” condition on
the Offer Space Inclusion Date (except that Landlord shall deliver the same in
compliance with Legal Requirements and free of asbestos and asbestos containing
materials), and (vii) the term of the lease of the Offer Space shall be
coterminous with the Term of this Lease.

 

(e)                                  If in Tenant’s Rent Notice, Tenant
disputes Landlord’s determination of Fair Offer Rental, and Landlord and Tenant
fail to agree as to the amount thereof within twenty (20) Business Days after the
giving of Tenant’s Rent Notice, then the dispute shall be resolved by
arbitration in the same manner as a dispute involving Fair Market Rent pursuant
to Section 36.01 herein; provided, that such arbitration proceeding
shall not commence prior to the date that is three (3) months before the
Anticipated Inclusion Date.  If the
dispute shall not have been resolved on or before the Offer Space Inclusion
Date, then pending such resolution, Tenant shall pay, as Fixed Rent for the
applicable Offer Space, an amount equal to Landlord’s Offer Determination.  If such resolution shall be in favor of
Tenant, then within twenty (20) days after the final determination of Fair
Offer Rental, Landlord shall refund to Tenant any overpayment or credit Tenant
against Rent next coming due, at Landlord’s option.

 

(f)                                    If Landlord is unable to deliver
possession of the Offer Space to Tenant for any reason on or before the date on
which Landlord anticipates that the Offer Space shall be Available as set forth
in the Offer Notice, the Offer Space Inclusion Date shall be the date on which
Landlord is able to so deliver possession and Landlord shall have no liability
to Tenant therefor and this Lease shall not in any way be impaired.  This Section 37.01(f) constitutes
“an express provision to the contrary” within the meaning of Section 223-a
of the New York Real Property Law and any other law of like import now or
hereafter in effect.  Notwithstanding the
foregoing, Landlord shall use commercially reasonable efforts to deliver the
Offer Space to Tenant as soon as possible following the projected Offer Space
Inclusion Date, and if for any reason such Offer Space is not delivered to
Tenant within one hundred eighty (180) days from the projected Offer Space
Inclusion Date for such Offer Space (the “Offer Space

 

83

 

Outside Date”),
then Tenant shall have the right to rescind its exercise of the Offer Space
Option with respect to such Offer Space upon thirty (30) days written notice to
Landlord given, if at all, within fifteen (15) days after the Offer Space
Outside Date (with time being of the essence with respect to the giving of such
rescission notice), provided that delivery of such Offer Space shall not occur
within such thirty (30) day period, in which case such rescission notice shall
be null and void and of no force or effect. 
The parties hereto acknowledge and agree that such rescission right
shall be Tenant’s sole and exclusive remedy if Landlord shall be unable to
deliver possession of the Offer Space to Tenant for any reason on or before the
Offer Space Outside Date, and that Landlord shall have no other liability for
failure to give Tenant possession of the Offer Space.

 

(g)                                 If Tenant fails timely to give an
Acceptance Notice, then (i) Landlord may enter into one or more leases of
the particular Offer Space with respect to which Tenant did not give an
Acceptance Notice with third parties on such terms and conditions as Landlord
shall determine, the Offer Space Option with respect only to the particular
space that was the subject of the Offer Notice shall be null and void and of no
further force and effect and Landlord shall have no further obligation to offer
such portion of the Offer Space to Tenant.

 

(h)                                 Promptly after the occurrence of the
Offer Space Inclusion Date, Landlord and Tenant shall confirm the occurrence
thereof and the inclusion of the Offer Space in the Premises by executing an
instrument reasonably satisfactory to Landlord and Tenant; provided, that
failure by Landlord or Tenant to execute such instrument shall not affect the
inclusion of the Offer Space in the Premises in accordance with this Section 37.01.

 

ARTICLE 38

 

Landlord’s Work Allowance

 

38.01                    (a)                                 Subject to the terms and conditions
hereinafter set forth, Landlord shall provide a construction allowance (“Landlord’s
Contribution”) to reimburse Tenant for Tenant’s cost of preparing the
Premises for Tenant’s occupancy thereof during the Term (“Tenant’s Work”),
in an aggregate amount not to exceed Two Million One Hundred Ninety Thousand
Twenty  ($2,190,020)
Dollars.  Landlord shall fund the portion
of Landlord’s Contribution from time to time being requisitioned by Tenant in
the manner set forth in Section 38.01(b) below, but only if
all of the following conditions shall have been satisfied:

 

(i)                                     Tenant shall not be in default of any of
the terms, covenants or conditions to be performed or observed by Tenant under
this Lease (provided that if Tenant shall cure such default, Tenant shall again
be eligible to receive Landlord’s Contribution);

 

(ii)                                  Tenant shall have obtained, and at all
times during the construction period shall maintain, all necessary and
appropriate permits, licenses, authorizations and approvals as may then be
required by any governmental authorities having or asserting jurisdiction in
connection with such construction, and shall have delivered true copies thereof
to Landlord; and

 

(iii)                               Tenant shall have delivered to Landlord,
for approval by Landlord: (x) a completed requisition for payment (in form
issued by the American Institute of

 

84

 

Architects),
certified and sworn to by an officer of Tenant and Tenant’s architect stating
or accompanied by:  (1) the amount
being requested, (2) paid invoices for all labor and materials performed
as part of Tenant’s Work covered by all requisitions made prior to such
requisition, (3) the amount of Landlord’s Contribution previously paid to
Tenant, (4) the value of labor and materials performed and incorporated in
the Premises through the last day of the month immediately prior to such
requisition and the aggregate value of the entire Tenant’s Work to be
performed, and (5) that all work then completed has been performed in good
and workmanlike manner in accordance with Tenant’s Plans, as approved by
Landlord, and in compliance with all Laws; and (y) waivers of lien from
all contractors, subcontractors and materialmen who shall have furnished
materials or supplies or performed work or services in connection with Tenant’s
Work covered by all requisitions made prior to such requisition.

 

(b)                                 The Landlord’s Contribution shall be paid
by Landlord to Tenant in progress payments as follows:  Within thirty (30) days after Tenant shall
have complied with all of the conditions set forth in the foregoing Section 38.01(a),
Landlord shall pay to Tenant an amount equal to that portion of Landlord’s
Contribution which shall equal, on a percentage basis, that portion of Tenant’s
Work then completed in accordance with the provisions hereof, as certified by
Tenant’s architect and an officer of Tenant, less all amounts of Landlord’s
Contribution previously disbursed, provided, however, that Landlord shall not
be required to make more than one (1) payment per any thirty (30) day
period.  Landlord shall have the right to
retain ten (10%) percent of every requisition of Landlord’s Contribution until:
(i) all of Tenant’s Work shall have been finally completed, (ii) waivers
of lien from all contractors, subcontractors and materialmen who shall have
furnished materials or supplies or performed work or services in connection
with Tenant’s Work shall have been delivered to Landlord, (iii) all
governmental authorities having or asserting jurisdiction (including the New
York City Department of Buildings) shall have issued final approvals of Tenant’s
Work and true copies thereof shall have been delivered to Landlord, and (iv) Tenant
shall have delivered to Landlord “as built” drawings with respect to Tenant’s
Work that comply with the requirements of Section 11.08 above.

 

(c)                                  Landlord’s obligation to pay Landlord’s
Contribution shall only apply to that part of Tenant’s Work consisting of the
installation of walls, partitions, columns, fixtures, improvements and
appurtenances permanently attached to or built into the Premises, including the
following:  mechanical systems, flooring,
wall coverings, ceilings, duct work, electrical wiring, plumbing, millwork and
supplemental air conditioning systems (if any), affixed carpeting and other
floor coverings, but shall not include business and trade fixtures, machinery,
equipment or other articles of personal property, professional fees and/or
so-called “soft costs”;  provided, however, that Tenant may apply any unused portion
of Landlord’s Contribution, up to a maximum of fifteen (15%) percent of
Landlord’s Contribution, remaining after Tenant shall have satisfied all of the
conditions set forth in clauses (i) through (iii) in Section 38.01(b) above
against Tenant’s permit and filing fees and architect’s and engineer’s professional
fees incurred in connection with the performance of Tenant’s Work.

 

(d)                                 Landlord shall have no obligation to pay
all or any portion of Landlord’s Contribution to Tenant at any time after the
third (3rd) anniversary of the Commencement Date, except any portion of
Landlord’s Contribution that shall remain unpaid but that shall have become due
and payable on or prior to the third (3rd) anniversary of the Commencement
Date.  Tenant hereby waives any and all
rights to claim or receive all or any

 

85

 

portion of Landlord’s Contribution that shall not have become due and
payable to Tenant on or before the third (3rd) anniversary of the Commencement
Date.

 

(e)                                  If Landlord fails to approve a progress
payment on a timely basis when required hereunder, Tenant shall provide written
notice of such failure to Landlord.  Any
dispute arising between Landlord and Tenant as to whether Landlord has failed
properly to approve a required progress payment shall be subject to expedited
arbitration pursuant to the terms of Section 35.07(b) hereof,
and in the event that Tenant shall obtain a final and binding determination of
such arbitrators, which decision has been reduced to judgment, to the effect
that Landlord was required to approve progress payment, then if Landlord shall
not within ten (10) days after such judgment has been obtained approve the
same and pay such funds to Tenant, Tenant shall have the right to offset such
amount, with interest accruing from the date that such progress payment should
have been made against the next installment(s) of Fixed Rent becoming due
hereunder until Tenant has been fully reimbursed therefor.  Such interest shall be calculated at the Base
Rate for the period from the date when such progress payment should have been
made until the date that is ten (10) days after such judgment has been
obtained and at one and one-half (1 1⁄2%) percent per month thereafter until such
offset shall occur or payment shall be made.

 

(f)                                    If any Building violation (other than a
violation which results from any act or omission of Tenant) shall prevent
Tenant from obtaining any work or building permit requested in connection with
Tenant Work’s or from thereafter performing Tenant’s Work or if remediation of
Hazardous Materials are otherwise required to comply with Legal Requirements in
order to enable Tenant to obtain or as a condition to a building permit
required to perform Tenant’s Work, then Landlord shall cure and remove said
violation and perform any such remediation within ten (10) days after the
receipt of Tenant’s notice to Landlord thereof, or if the same is of such a
nature that it cannot be removed and cured or remediated within ten (10) days,
Landlord shall commence within such ten (10) day period, and thereafter
diligently pursue, such cure, removal or remediation.

 

ARTICLE 39

 

Cancellation Option

 

39.01                    Notwithstanding any other provisions of this Lease to
the contrary, Tenant shall have the one-time right to cancel and terminate this
Lease with respect to the entire Premises only, effective as of the day (the “Cancellation
Date”) preceding the tenth (10th)
anniversary of the Rent Commencement Date, provided that each of the following
conditions is satisfied:  (i) Tenant
shall give Landlord not less than eighteen (18) months prior written notice of
its election to cancel and terminate this Lease (“Tenant’s Notice of
Cancellation”), (ii) there shall not be any default beyond any
applicable notice and cure period under this Lease at the time Tenant’s Notice
of Cancellation is given, and there shall not be any default beyond any
applicable notice and cure period in the payment of any Rent or in Tenant’s
obligation to remove any specialty alterations that Tenant is required to have
removed on the Cancellation Date; (iii) Tenant shall have paid to Landlord
at the time of the giving of Tenant’s Notice of Cancellation an amount equal to
the straight-line unamortized portion of (a) the Landlord’s Contribution
actually disbursed to Tenant; (b) the brokerage commissions and legal fees
incurred

 

86

 

by Landlord in connection with this Lease, and (c) $615,291.32 of
the free Fixed Rent granted to Tenant; with the amortization of such costs to
be calculated on the basis of an amortization period beginning on the
Commencement Date and ending on the last day of the month in which occurs the
day immediately preceding the 15th anniversary of the Rent Commencement Date and
an interest rate of eight percent (8%) per annum; and (iv) Tenant
additionally shall have paid Landlord at the time of the giving of Tenant’s
Notice of Cancellation an amount equal to $350,000.00.  Time is of the essence with respect to the
giving of Tenant’s Notice of Cancellation and the making of the payments
required to be made by this Section 39.01.  Upon the timely giving of Tenant’s Notice of
Cancellation and the timely payment of the sums required to be paid by this Section 39.01,
the Term shall expire on the Cancellation Date as if such date were the Expiration
Date and neither party shall have any further rights or obligations under this
Lease except for such rights and obligations which expressly survive the
Cancellation Date or the Expiration Date. 
From and after the date Tenant has delivered Tenant’s Notice of
Cancellation, Tenant’s rights under Articles 36 and 37 of this Lease
shall terminate and be of no further force and effect.  Tenant may request that Landlord provide
Tenant with the amounts of the items listed in clauses (iii)(a), (b) and
(c) above at any time during the Term after the first sixty (60)
days following the Rent Commencement Date. 
The provisions of this Article 39 shall survive the
Cancellation Date.

 

ARTICLE 40

 

Roof Installations

 

40.01                    (a)                                   Provided Tenant shall not be in default
under this Lease beyond notice and the expiration of any applicable cure
period, Tenant shall have the right to install, at Tenant’s sole cost and
expense, surface mounted poles attached to the roof of the Building and/or a
satellite dish or other communications device, in an area not to exceed four (4) square
feet, and Tenant shall maintain and operate the same (hereinafter collectively
referred to as the “Installations”) subject to all of the terms,
covenants and conditions of this Lease (including, without limitation, Article 11);
provided further that unless the
Installations shall be installed within eighteen (18) months following the Rent
Commencement Date, Tenant’s right to install the same shall be subject to the
availability of sufficient space for such Installations at the time of Tenant’s
request.  Before installing any of the
Installations, Landlord’s approval as to size, weight, location and method of
attachment must be obtained.  Landlord’s
approval (which shall be given or withheld in accordance with the provisions of
Article 11 hereof) shall also be required for modifications to, and
the removal of, the Installations.

 

(b)                                 Landlord shall, in its sole discretion,
designate the available space on the roof of the Building for the location of
the Installations, and of all passageways required for access to such
Installations by Tenant’s personnel.  If
Tenant shall install any Installations as permitted in this Article 40,
Landlord shall make available space in the Building shaftways for purposes of
installing a conduit riser of commercially reasonable size for Tenant’s
electric, power voice and data requirements from the Premises to the
Installations, which riser shall be installed at Tenant’s sole cost.  In connection with Tenant’s installation, maintenance
and operation of the Installations, Tenant shall comply with all Legal
Requirements and shall procure, maintain and pay for all permits and licenses
required therefor, including all renewals thereof.  The parties agree that Tenant’s use of the roof
of the Building is a non-exclusive use

 

87

 

and Landlord may
permit the use of any other portion of the roof to any other person, firm or
corporation for any use, including the installation of other antennas,
generators and/or communications systems, provided the same do not materially
interfere with the use and operation of the Installations.  Tenant shall ensure that its use of the roof
does not unreasonably impair such other person’s, firm’s or corporation’s data
transmission and reception via their respective antennas and support equipment,
if any.  Tenant, at its sole cost and
expense, shall install any screening device requested by Landlord at any time
to ensure that the Installations cannot be viewed or seen by the general public
and, if such screening device is installed, it shall be deemed to be an
Installation under this clause.

 

40.02                     Intentionally omitted.

 

40.03                     In no event shall the maximum level of emissions from
the Installations exceed a reasonable portion of the total emissions allowable
for the Building under applicable Legal Requirements, taking into account the
number of rooftop installations at the Building.

 

40.04                     Landlord shall not charge Tenant rent for the use of
the roof space for the Installations, but Tenant shall pay for all electrical
service required for Tenant’s use of the Installations in accordance with Article 14
of this Lease.

 

40.05                     Tenant, at Tenant’s sole cost and-expense, shall
promptly repair any and all damage to the roof of the Building and to any other
part of the Building caused by or resulting from the installation, maintenance
and repair, operation or removal of the Installations erected or installed by
Tenant pursuant to the provisions of this Article 40.  Tenant further covenants and agrees that the
Installations and any related equipment erected or installed by Tenant pursuant
to the provisions of this Article 40 shall be erected, installed,
repaired, maintained and operated by Tenant at the sole cost and expense of
Tenant and without charge, cost or expense to Landlord.

 

40.06                     The Installations and related equipment installed by
Tenant pursuant to the provisions of this Article 40 shall be
Tenant’s Property, and, upon the expiration or earlier termination of the Term
of this Lease shall be removed by Tenant, at Tenant’s sole cost and expense,
and Tenant shall repair any damage to the roof of the Building, and any other
portion or portions of the Building caused by or resulting from said removal
and Tenant shall restore same to its condition existing immediately prior to
Tenant’s installation of the Installations.

 

40.07                     At any time during the Term, Landlord may require
Tenant to relocate the Installations and related equipment to another portion
of the roof upon sixty (60) days notice to Tenant (at Landlord’s expense) or to
remove the Installations (at Tenant’s expense) if their existence would
constitute a violation of any Legal Requirements.

 

40.08                     Nothing contained in this Article 40 shall
be deemed to require Landlord to keep or maintain any area on the roof of the
Building available for Tenant’s Installations, except that Landlord shall
maintain an area of four (4) square feet for such purpose for a period of
eighteen (18) months following the Rent Commencement Date, as set forth in Section 40.01(a).

 

*                                         *                                         *

 

88

 

IN WITNESS WHEREOF, Landlord and Tenant have duly executed this Lease as
of the dates indicated below to be effective as of the day and year first above
written.

 

 

	
   

  	
  1114
  6TH AVENUE CO. LLC, Landlord

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  1114 6th Avenue Holdings LLC, its managing member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeremiah B. Larkin

  
	
   

  	
   

  	
  Name:    Jeremiah B. Larkin

  
	
   

  	
   

  	
  Title:      Senior Vice President

  
	
   

  	
   

  	
  Date:      Director of Leasing

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ADVENT
  SOFTWARE, INC., Tenant

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Stephanie G. DiMarco

  
	
   

  	
   

  	
  Name:   Stephanie G. DiMarco

  
	
   

  	
   

  	
  Title:     CEO

  
	
   

  	
   

  	
  Date:     September 30, 2009

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Tenant’s
  Federal Identification Number:  94-2901952

  

 

 

EXHIBIT
A

 

Description
of Land

 

All that certain lot, piece
or parcel of land, situate, lying and being in the Borough of Manhattan, City,
County and State of New York, bounded and described as follows:

 

BEGINNING at a point on the
northerly side of West 42nd Street, distant 208 feet easterly from the
northeasterly corner of 42nd Street and Avenue of the Americas (formerly 6th
Avenue);

 

RUNNING THENCE easterly
along the northerly side of 42nd Street, 234 feet;

 

THENCE northerly parallel
with Avenue of the Americas, 200 feet 10 inches to the southerly side of 43rd
Street;

 

THENCE westerly along the
southerly side of 43rd Street, 442 feet to the easterly side of Avenue of the
Americas;

 

THENCE southerly along the
easterly side of Avenue of the Americas, 100 feet 5 inches to the center line
of the block;

 

THENCE easterly parallel
with 42nd Street, 208 feet;

 

THENCE southerly parallel
with Avenue of the Americas, 100 feet 5 inches to the northerly side of 42nd
Street, at the point or place of BEGINNING.

 

 

EXHIBIT
B

 

Floor
Plan of Premises

 

(See
attached.)

 

 

 

 

EXHIBIT
C

 

Landlord’s
Work

 

Landlord will deliver the
Premises in fully demolished core and shell condition and with work
substantially completed as described below:

 

·                  The Premises
will be fully demolished and delivered in broom clean condition;

 

·                  Landlord shall
install a temporary construction sprinkler loop in the Premises, in compliance
with code for a construction floor;

 

·                  Landlord shall
furnish 3⁄4” cold water supply for Tenant tie-in;

 

·                  Landlord shall
furnish a fire alarm system with adequate connectivity (provided that Tenant
shall be responsible for all costs associated with tie-in and reprogramming of
such system);

 

·                  Landlord shall
furnish main HVAC supply and return duct connections for the Premises through
the core wall inclusive of fire/smoke dampers per code;

 

·                  Landlord shall
scrape and patch floor and any penetrations as necessary to accept a standard
office installation;

 

·                  Landlord shall
fireproof all existing steel as per code for demolished space and shall
firestop all penetrations in fire rated construction as per code for demolished
space;

 

·                  Landlord shall
abate any hazardous materials and shall deliver an ACP-5 to Tenant;

 

·                  Landlord shall
tape and sand all core walls and exterior Building walls and shall insulate all
exterior Building walls in the Premises; and

 

·                  Landlord shall
repair or replace all damaged convector covers and ensure that all perimeter
convectors and fan units therein are in good working order.

 

 

EXHIBIT
D

 

Form of
Letter or Credit

 

[ISSUING
BANK]

 

[Date]

 

BENEFICIARY:

 

1114 6TH AVENUE CO.
LLC

c/o Brookfield Properties Management LLC

Three World Financial Center

200 Vesey Street

New York, New York 10281-1021

Attention:  General Counsel

 

Ref:  Irrevocable Letter of Credit No.

 

Ladies and Gentlemen:

 

By order of our client,
[Insert Name of Tenant], a
[                    ]
[                    ]
(“Tenant”), having an address at
[                                                                      ],
we hereby open in your favor our clean irrevocable Letter of Credit No. 
                    
for the aggregate sum of
[                    ]
United States Dollars, (U.S.
$                            ),
effective immediately and expiring at our
                                ,
New York, New York office on [Insert Expiration Date] or any automatically
extended date.

 

Funds under this Letter
of Credit are available to you against presentation of the original of this
Letter of Credit and your sight draft(s) drawn on us marked “drawn under
Irrevocable Letter of Credit No. 
                    
dated [Insert date of this Letter of Credit]”, which may be presented in person
at our office listed above [or by facsimile transmitted to
                                        ],
accompanied by Beneficiary’s signed statement that under the terms and
conditions of that certain Lease dated
                  
      , 2009 between Beneficiary and Tenant,
Beneficiary is entitled to draw upon the Letter of Credit.

 

Partial draws under this
Letter of Credit are permitted.

 

It is a condition of this
Letter of Credit that it shall be deemed automatically extended without
amendment for one year from the present or any future expiration date hereof,
unless not less than sixty (60) days prior to any such date we shall notify you
by registered mail that we elect not to consider this Letter of Credit renewed
for any such additional period.  Upon
receipt by you of such notice, you may draw hereunder by means of your draft on
us at sight, accompanied by the original Letter of Credit.

 

D-1

 

This Letter of Credit
sets forth the full terms of our understanding and shall not in any way be
modified, amended, or amplified by reference to any other document, instrument,
or agreement which is not signed by our duly authorized officer.

 

The request for payment
under this Letter of Credit shall be final and conclusive for all purposes
without verification by us and shall not be subject to refutation, denial or
contest.

 

This Letter of Credit is
transferable in whole but not in part by the beneficiary upon notice to the
undersigned, without charge.  Requests
for transfer will be [in the form of Annex A attached hereto,] duly
completed by an officer of your company and accompanied by the original of this
Letter of Credit.

 

If we receive the
original of this Letter of Credit, your sight draft and Beneficiary’s signed
statement, as mentioned above, in accordance with the terms and conditions of
this Letter of Credit, we will promptly honor the same.

 

This Letter of Credit is
subject to the International Standby Practices (ISP98), International Chamber
of Commerce, Publication No. 590, shall be deemed to be a contract made
under, and as to matters not governed by the UCP, shall be governed by and
construed in accordance with the laws of the State of New York and applicable
U.S. Federal Law.

 

[Name of Bank]

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signature

  	
   

  
	
   

  	
  Title:

  	
   

  

 

[ANNEX
A TO BE ADDED BY ISSUING BANK, IF REQUIRED]

 

D-2

 

EXHIBIT
E

 

Rules and
Regulations

 

1.             The rights of each tenant in the entrances, corridors,
elevators and escalators servicing the Building are limited to ingress to and
egress from such tenant’s premises for the tenant and its employees, licensees
and invitees, and no tenant shall use, or permit the use of, the entrances,
corridors, escalators or elevators for any other purpose.  No tenant shall invite to the tenant’s
premises, or permit the visit of, persons in such numbers or under such
conditions as to interfere with the use and enjoyment of any of the plazas,
entrances, corridors, escalators, elevators and other facilities of the
Building by any other tenants.  Fire
exits and stairways are for emergency use only, and they shall not be used for
any other purpose by the tenants, their employees, licensees or invitees.  No tenant shall encumber or obstruct, or
permit the encumbrance or obstruction of any of the sidewalks, plazas, entrances,
corridors, escalators, elevators, fire exits or stairways of the Building.  Landlord reserves the right to control and
operate the public portions of the Building and the public facilities, as well
as facilities furnished for the common use of the tenants, in such manner as it
in its reasonable judgment deems best for the benefit of the tenants generally.

 

2.             Landlord may refuse admission to the Building outside of
Business Hours on Business Days (as such terms are defined in the Lease to
which this Exhibit is attached) to any person not known to the watchman in
charge or not having a pass issued by Landlord or the tenant whose premises are
to be entered or not otherwise properly identified, and Landlord may require
all persons admitted to or leaving the Building outside of Business Hours on
Business Days to provide appropriate identification.  Tenant shall be responsible for all persons
for whom it issues any such pass and shall be liable to Landlord for all acts
or omissions of such persons.  Any person
whose presence in the Building at any time shall, in the reasonable judgment of
Landlord, be prejudicial to the safety, character or reputation of the Building
or of its tenants may be denied access to the Building or may be ejected
therefrom.  During any invasion, riot,
public excitement or other commotion, Landlord may prevent all access to the
Building by closing the doors or otherwise for the safety of the tenants and
protection of property in the Building.

 

3.             No tenant shall obtain or accept for use in its premises
ice, drinking water, food, beverage, towel, barbering, bootblacking, floor
polishing, cleaning or other similar services from any persons reasonably
prohibited by Landlord in writing from furnishing such services.  Such services shall be furnished only at such
hours, and under such reasonable regulations, as may be fixed by Landlord from
time to time.

 

4.             The cost of repairing any damage to the public portions
of the Building or the public facilities or to any facilities used in common
with other tenants, caused by a tenant or its employees, agents, contractors,
licensees or invitees, shall be paid by such tenant.

 

5.             No awnings or other projections shall be attached to the
outside walls of the Building.  No
curtains, blinds, shades or screens which are different from the standards
adopted by Landlord for the Building shall be attached to or hung in, or used
in connection with, 

 

E-1

 

any exterior window or, if visible from outside of the
Premises, any exterior door of the premises of any tenant, without the prior
written consent of Landlord, which consent shall not be unreasonably withheld
or delayed.  Such curtains, blinds,
shades or screens must be of a quality, type, design and color, and attached in
the manner approved by Landlord.

 

6.             No lettering, sign, advertisement, notice or object
shall be displayed in or on the exterior windows or doors, or on the outside of
any tenant’s premises, or at any point inside any tenant’s premises where the
same shall be visible outside of the Building from the street level, without
the prior written consent of Landlord, which consent shall not be unreasonably
withheld or delayed.  In the event of the
violation of the foregoing by any tenant, Landlord may remove the same without
any liability, and may charge the expense incurred in such removal to the
tenant violating this rule.  Interior
signs, elevator cab designations and lettering on doors and the Building
directory shall, if and when approved by Landlord, be inscribed, painted or
affixed for each tenant by Landlord at the expense of such tenant, and shall be
of a size, color and style acceptable to Landlord.

 

7.             The sashes, sash doors, skylights, windows and doors
that reflect or admit light and air into the halls, passageways or other public
places in the Building shall not be covered or obstructed by any tenant, nor
shall any bottles, parcels or other articles be placed on the window sills or
on the peripheral air conditioning enclosures, if any.

 

8.             No showcases or other articles shall be put in front of
or affixed to any part of the exterior of the Building, nor placed in the
halls, corridors or vestibules.

 

9.             No bicycles, vehicles, animals, fish or birds of any
kind shall be brought into or kept in or about the premises of any tenant or
the Building.

 

10.           No noise, including, but not limited
to, music or the playing of musical instruments, recordings, radio or
television, which, in the reasonable judgment of Landlord, might disturb other
tenants in the Building, shall be made or permitted by any tenant.  Nothing shall be done or permitted in the
premises of any tenant which would impair or interfere with the use or
enjoyment by any other tenant of any other space in the Building.

 

11.           No tenant, nor any tenant’s
contractors, employees, agents, visitors or licensees, shall at any time bring
into or keep upon the premises or the Building any inflammable, combustible,
explosive or otherwise dangerous fluid, chemical or substance other than the
minimal amount required in the normal operation and maintenance of Tenant’s
business office equipment and machines provided same are maintained in
accordance with all applicable legal and insurance requirements.

 

12.           Additional locks or bolts of any kind
which shall not be operable by the Grand Master Key for the Building shall not
be placed upon any of the doors or windows by any tenant, nor shall any changes
be made in locks or the mechanism thereof which shall make such locks
inoperable by said Grand Master Key. 
Additional keys for a tenant’s premises and toilet rooms shall be
procured only from Landlord who may make a reasonable charge therefor.  Each tenant shall, upon the termination of
its tenancy, turn over to Landlord all keys of stores, offices and toilet rooms,
either furnished to, or otherwise procured by, such tenant, and in the event of

 

E-2

 

the loss of any keys furnished by Landlord at Landlord’s
cost, such tenant shall pay to Landlord the cost thereof.

 

13.           All removals, or the carrying in or
out of any safes, freight, furniture, packages, boxes, crates or any other
object or matter of any description must take place during such hours and in
such elevators, and in such manner as Landlord or its agent may reasonably
determine from time to time.  The persons
employed to move safes and other heavy objects shall be reasonably acceptable
to Landlord and, if so required by law, shall hold a Master Rigger’s
license.  Arrangements will be made by
Landlord with any tenant for moving large quantities of furniture and equipment
into or out of the Building.  All
reasonable labor and engineering costs incurred by Landlord in connection with
any moving specified in this rule, including a reasonable charge for overhead and
profit, shall be paid by tenant to Landlord, on demand.

 

14.           Landlord reserves the right to
inspect all objects and matter to be brought into the Building and to exclude
from the Building all objects and matter which violate any of these Rules and
Regulations or the Lease of which this Exhibit is a part.  Landlord may require any person leaving the
Building with any package or other object or matter to submit a pass, listing
such package or object or matter, from the tenant from whose premises the
package or object or matter is being removed, but the establishment and
enlargement of such requirement shall not impose any responsibility on Landlord
for the protection of any tenant against the removal of property from the
premises of such tenant.  Landlord shall
in no way be liable to any tenant for damages or loss arising from the
admission, exclusion or ejection of any person to or from the premises or the
Building under the provisions of this Rule or of Rule 2 hereof unless
caused by or resulting from the negligence or willful act of Landlord, its
agents, servants, contractors, or employees.

 

15.           No tenant shall occupy or permit any
portion of its premises to be occupied as an office for a public stenographer
or public typist, or for the possession, storage, manufacture, or sale of
liquor, narcotics, dope, tobacco in any form, or as a barber, beauty or
manicure shop, or as a school.  No tenant
shall use or permit its premises or any part thereof to be used, for
manufacturing, or the sale at retail or auction of merchandise, goods, or as a
school.  No tenant shall use or permit
its premises or any part thereof to be used, for manufacturing, or the sale at
retail or auction of merchandise, goods or property of any kind.

 

16.           Landlord shall have the right to
prohibit any advertising or identifying sign by any tenant which, in Landlord’s
reasonable judgment, tends to impair the reputation of the Building or its
desirability as a building for others, and upon written notice from Landlord,
such tenant shall refrain from and discontinue such advertising or identifying
sign.

 

17.           Landlord shall have the right to
prescribe the weight and position of safes and other objects of excessive
weight, and no safe or other object whose weight exceeds the lawful load for
the area upon which it would stand shall be brought into or kept upon any
tenant’s premises.  If, in the reasonable
judgment of Landlord, it is necessary to distribute the concentrated weight of
any heavy object, the work involved in such distribution shall be done at the
expense of the tenant and in such manner as Landlord shall reasonably
determine.

 

E-3

 

18.           No machinery or mechanical equipment
other than ordinary portable business machines may be installed or operated in
any tenant’s premises without Landlord’s prior written consent which consent
shall not be unreasonably withheld or delayed, and in no case (even where the
same are of a type so excepted or as so consented to by Landlord) shall any
machines or mechanical equipment be so placed or operated as to disturb other
tenants; but machines and mechanical equipment which may be permitted to be
installed and used in a tenant’s premises shall be equipped, installed and
maintained by such tenant as to prevent any disturbing noise, vibration or
electrical or other interference from being transmitted from such premises to
any other area of the Building.

 

19.           Landlord, its contractors, and their
respective employees, shall have the right to use, without charge therefor, all
light, power and water in the premises of any tenant while cleaning or making
repairs or alterations in the premises of such tenant.

 

20.           No premises of any tenant shall be
used for lodging or sleeping or for any immoral or illegal purpose.

 

21.           The requirements of tenants will be
attended to only upon application at the office of the Building.  Employees of Landlord shall not perform any
work or do anything outside of their regular duties, unless under special
instructions from Landlord.

 

22.           Canvassing, soliciting and peddling
in the Building are prohibited and each tenant shall cooperate to prevent the
same.

 

23.           No tenant shall cause or permit any
unusual or objectionable odors to emanate from its premises which would annoy
other tenants or create a public or private nuisance.  No cooking shall be done in the premises of
any tenant except as is expressly permitted in such tenant’s lease, provided
that nothing contained herein shall prohibit tenants from warming food in
microwaves in pantries within their premises.

 

24.           Nothing shall be done or permitted in
any tenant’s premises, and nothing shall be brought into or kept in any tenant’s
premises, which would impair or interfere with any of the Building’s services
or the proper and economic heating, ventilating, air conditioning, cleaning or
other servicing of the Building or the premises, or the use or enjoyment by any
other tenant of any other premises, nor shall there be installed by any tenant
any ventilating, air-conditioning, electrical or other equipment of any kind
which, in the reasonable judgment of Landlord, might cause any such impairment
or interference.  For purposes hereof,
the term “EMI” shall mean electromagnetic interference, and the term “Excessive
EMI” shall mean EMI at a level exceeding thirty (30) milligaus.  Tenant, at Tenant’s sole cost and expense,
promptly following its receipt of notice from Landlord to the effect that the
installation or manner of operation of any equipment by Tenant is causing
Excessive EMI in any portion of the Building other than the Premises, shall
take steps to bring such Excessive EMI below thirty (30) milligaus in a manner
that is appropriate, as reasonably determined by Landlord.  Tenant shall not install any equipment or
operate any equipment in a manner which would result in the electrical voltage
and current distortion at the service switchboards of any floor of the Building
failing to be within the limits stated in IEEE 519.

 

E-4

 

25.                                 No acids, vapors or other materials shall
be discharged or permitted to be discharged into the waste lines, vents or
flues of the Building which may damage them. 
The water and wash closets and other plumbing fixtures in or serving any
tenant’s premises shall not be used for any purpose other than the purposes for
which they were designed or constructed, and no sweepings, rubbish, rags, acids
or other foreign substances shall be deposited therein.  All damages resulting from any misuse of the
fixtures shall be borne by the tenant who, or whose servants, employees,
agents, visitors or licensees, shall have caused the same.  Any cuspidors or containers or receptacles
used as such in the premises of any tenant or for garbage or similar refuse,
shall be emptied, cared for and cleaned by and at the expense of such tenant.

 

26.                                 All entrance doors in each tenant’s
premises shall be left locked and all windows shall be left closed by the
tenant when the tenant’s premises are not in use.  Entrance doors shall not be left open at any
time.  Each tenant, before closing and
leaving its premises at any time, shall turn out all lights.

 

27.                                 Hand trucks not equipped with rubber
tires and side guards shall not be used within the Building.

 

28.                                 All windows in each tenant’s premises
shall be kept closed, and all blinds therein above the ground floor shall be
lowered as reasonably required because of the position of the sun, during the
operation of the Building air-conditioning system to cool or ventilate the
tenant’s premises.  If Landlord shall
elect to install any energy saving film on the windows of the Premises or to
install energy saving windows in place of the present windows tenant shall
cooperate with the reasonable requirements of Landlord in connection with such
installation and thereafter the maintenance and replacement of the film and/or
windows and permit Landlord to have access to the tenant’s premises at
reasonable times during Business Hours to perform such work.

 

29.                                 Intentionally Omitted.

 

30.                                 Landlord reserves the right to rescind,
alter or waive any rule or regulation at any time prescribed for the
Building when, in its reasonable judgment, it deems it necessary, desirable or
proper for its best interest and for the best interests of the tenants
generally, and no alteration or waiver of any rule or regulation in favor
of one tenant shall operate as an alteration or waiver in favor of any other
tenant.  Landlord shall not be
responsible to any tenant for the non-observance or violation by any other
tenant of any of the rules and regulations at any time prescribed for the
Building.

 

31.                                 Except as otherwise agreed to in writing
by Landlord, Tenant shall not use or permit the use of the Premises for the
sale, lease, license or other delivery of electronic commerce services to any
tenants or occupants of the Building, including but not limited to, hardware
and software services that allow users to conduct business-to-business or
business-to-consumer services over networks utilizing, by way of example,
e-mail, electronic data interchange, data archiving, e-forms, electronic file
transfer, facsimile transfer or similar services or any other services not
expressly permitted under this Lease.

 

E-5

 

32.                                 Landlord may elect, in its sole
discretion from time to time, to provide one or more bicycle racks in or about
the Building as an amenity for the occupants of the Building.  The use of such bicycle racks by any
occupants of the Building shall be at their sole risk and Landlord shall be
under no obligation to take any steps to prevent or minimize the risk of
damage, theft or personal injury in connection with such use of the bicycle
racks.  The provisions of Section 18.01
of the Lease providing for the non-liability of Landlord and other specified
parties shall apply in all respects to any loss, injury or damage to Tenant or
to any other person, or to its or their property relating to or in connection
with the bicycle racks, provided that in no event shall Landlord or such other
specified parties be deemed to be negligent by virtue of the existence or
placement of such bicycle racks or Landlord’s failure to take any steps to
prevent or minimize the risk of damage, theft or personal injury in connection
with the use thereof.  The
indemnification provisions of clause (b) of Section 18.02 of
the Lease shall apply with respect to the use of the bicycle racks by Tenant or
any of its subtenants or licensees or its or their partners, directors,
principals, shareholders, officers, agents, employees or contractors.  Nothing contained herein shall be construed
to permit any tenant or occupant of the Building or its or their licensees or
invitees to bring any bicycle into the Building.

 

E-6

 

EXHIBIT
F

 

Alterations
Rules and Regulations

 

A.                                   General

 

1)                                      Tenant will make no alterations,
decorations, installations, repairs, additions, improvements or replacements
(which are hereinafter called “ Alterations” and which are the
Alterations referred to in the Lease) in, to or about the Premises except in
compliance with Article 11 of the Lease.

 

2)                                      Prior to the commencement of any
Alterations, Tenant is responsible for obtaining, from the Building Manager, a
base Building pre-demolition/pre-construction status report noting condition of
Premises.

 

3)                                      Prior to the commencement of any
Alterations, Tenant shall submit for Landlord’s written approval all required
items described in Paragraphs 1, 2 and 3 of Section B hereof.

 

4)                                      Tenant shall insure that the proposed
Alterations comply with The Administrative Code of The City of New York and all
other laws, ordinances, rules and regulations promulgated by all
governmental agencies and bodies having jurisdiction over such Alterations,
including, without limitation, the Americans With Disabilities Act.

 

5)                                      Tenant shall ensure that all proposed
Alterations comply with Building standards listed in Section C hereof, and
are adequately designed to serve Tenant’s needs while remaining in full
conformity with, and not adversely affecting, any Building systems.

 

6)                                      All (i) demolition or removal of
construction materials, or (ii) moving of construction materials to or
from the Building, or (iii)  other categories of work which may disturb or
interfere with other Tenants of the Building or disturb or interfere with
Building operations, must be scheduled and performed before or after Business
Hours.  Tenant shall provide the Building
Manager with written notice at least twenty-four (24) hours prior to scheduling
any Alteration, and shall pay Landlord’s standard charges for overtime porters,
security, engineers and other costs incurred by Landlord in connection with
such after hours scheduling.

 

7)                                      Intentionally omitted.

 

8)                                      All inquiries, Tenant plans, requests for
approvals, and all other matters shall be processed through the Building
Manager.

 

F-1

 

B.                                     Tenant Submittals

 

1)                                      Tenant to submit to Landlord the
following information for Landlord’s review and approval prior to commencement
of any Alterations.  Landlord’s review
and approval period will not commence until the Building Manager is in receipt
of the following items, as one complete package:

 

a)                                      Letter of Intent to perform
construction.  Letter to include a brief
description of the proposed Alterations, Tenant contact, complete list of
proposed contractors and work schedule.

 

b)                                     Two (2) sets of design drawings and
specifications noting full scope of work involved in performing such
Alterations.  All drawings must be signed
and sealed by Tenant’s Registered Architect or Professional Engineer licensed
to conduct business in the State of New York. 
Part plan drawings will not be acceptable.

 

(i)                                     If full height partition walls are being
installed in an area that is sprinklered, the existing sprinkler head locations
must be included to show that new partitions are not in conflict with sprinkler
coverage.

 

(ii)                                  If the area being altered includes
existing compartmentation walls, those compartmentation walls must be indicated
on Tenant’s layout.

 

c)                                      A letter from Tenant’s Registered
Architect or Professional Engineer stating that their design and scope of work
complies with all applicable codes, and local laws, especially noting Local
Laws 16/84, 58/87, and 5/73.  This letter
must be signed and include their professional seal.

 

d)                                     Proper New York City Building Department
filing applications, as required, for all Alterations indicated on drawings.

 

e)                                      Valid Certificates of Insurance and a
Contractors Agreement signed by Tenant’s general contractor (see Insurance
Requirements in Section D hereof).

 

2)                                      Upon completion of Landlord’s review, the
following will be returned to Tenant:

 

a)                                      A letter (i) granting approval to
file drawings; or (ii) granting conditional approval, subject to Tenant
incorporating Landlord’s comments and suggested revisions into a revised set of
design drawings (no Alterations will commence or applications be filed until
Landlord is in receipt of such revised set of drawings); or (iii) disapproving
such Alterations; and

 

b)                                     If approved, or conditionally approved,
Building Department applications signed by Landlord.

 

F-2

 

Landlord’s review is for
conformance with Building standards only and is not a review for compliance
with law or a review of the adequacy of Tenant’s design.  No such approval, or comments shall
constitute a waiver of the obligation that Tenant’s Alterations comply with all
laws and receive Buildings Department or other governmental approvals.

 

3)                                      Prior to commencement of Alterations:

 

Tenant to submit to
Landlord the following:

 

a)                                      A letter or revised drawings addressing
Landlord’s comments, if any.

 

b)                                     Approved New York City Building
Department filing applications, drawings, and all work permits.

 

c)                                      A final list of all contractors and
subcontractors who will perform the Alterations.

 

d)                                     A work schedule noting duration of work.

 

4)                                      Upon completion of Alterations:

 

Tenant to submit to
Landlord, in a timely manner, the following:

 

a)                                      All sign-off documents which pertain to work filed from
all agencies having jurisdiction.

 

b)                                     As-built drawings.

 

c)                                      A properly executed Air Balancing Report,
signed by a Professional Engineer.

 

C.                                     Building Standard Requirements

 

1)                                      All structural or floor loading
requirements, mechanical (HVAC), plumbing, sprinkler, electrical, fire alarm,
elevator, of any proposed Tenant installation shall be subject to the prior
approval of Landlord’s consultants.  All
expenses incurred by Landlord’s consultant regarding review and approval of
Tenant’s design shall be at Tenant’s expense.

 

2)                                      All demolition by Tenant (if any) shall
be supervised by Landlord’s representative at Tenant’s expense.

 

3)                                      Elevator service for construction work
shall be charged to Tenant at standard Building rates.  Prior arrangements for elevator use shall be
made with Building Manager by Tenant.  No
material or equipment shall be carried under or on top of elevators.  If workmen (including, without limitation,
Operating Engineers and 

 

F-3

 

Personnel Carriers), are required by any union regulations for material
or personnel hoisting, such workmen shall be paid for by Tenant.

 

4)                                      If shutdown of any mechanical or
electrical risers are required, such shutdown shall be performed by Landlord’s
contractors at Tenant’s expense or, at Landlord’s option, supervised by
Landlord’s representative at Tenant’s expense.

 

5)                                      Tenant’s contractor shall:

 

a)                                      have a Superintendent or Foreman on the
Premises at all times;

 

b)                                     police the job at all times, continually
keeping the Premises orderly; protection and maintenance will be Tenant’s
responsibility;

 

c)                                      maintain cleanliness and protection of
all areas, including elevators and lobbies;

 

d)                                     protect the front and top of all
peripheral HVAC units and thoroughly clean them at the completion of work;

 

e)                                      block off supply and return grills,
diffusers and ducts to keep dust from entering into the Building air
conditioning system;

 

f)                                        protect all Class “E” fire alarm
devices and wiring; and

 

g)                                     avoid the disturbance of other Tenants.

 

6)                                      If any part of Tenant’s Alteration is
improperly performed, Tenant shall be charged for corrective work done by
Landlord’s personnel or contractors engaged for such purpose by Landlord.

 

7)                                      All equipment and installations must be
equal to the standards of the Building. 
Any deviation from Building standards will be permitted only if approved
by Landlord in writing.

 

8)                                      Tenant shall pay Landlord for any amounts
billed in connection with any Alteration within thirty (30) days after billing
therefor.

 

9)                                      Landlord’s contract fire alarm service
personnel shall be the only personnel permitted to adjust, test, alter,
relocate, add to, or remove equipment connected to the Class “E” System.

 

10)                                During such times that Tenant’s
alterations or demolition of the Premises require that fire protection afforded
by the Class “E” System or sprinkler system be disabled, Tenant, at Tenant’s
expense, shall maintain fire watch service deemed reasonably suitable to
Landlord, and any agency having jurisdiction.

 

F-4

 

11)                                Landlord, at Tenant’s expense, shall
repair or cause to have repaired, any and all defects, deficiencies or
malfunctions of the Class “E” System caused by Tenant’s Alterations or
related demolition.  Such expense may
include expenses of engineering, supervision and standby fire watch personnel
that Landlord deems necessary to protect the Building during the time such
defects, deficiencies and malfunctions are being corrected.

 

12)                                Should Tenant desire to install its own
internal fire alarm system, Tenant shall request Landlord to connect such
system to the Class “E” System at Tenant’s expense in such reasonable
manner as prescribed by Landlord.  Tenant
shall, at Tenant’s expense, have such internal fire alarm system approved by
governing agencies having jurisdiction, and shall submit to Landlord an
approved copy of plans of such system before initiating any installation of
such system.  Tenant must demonstrate
that system is in working order prior to requesting tie-in.

 

13)                                Landlord, at Tenant’s expense, will be
responsible for the maintenance and proper operation of any Tenant Class “E”
Fire Alarm sub-system.

 

14)                                When Tenant’s use of any space requires a
change in the Certificate of Occupancy, whether a building has a Final
Certificate of Occupancy or Temporary Certificate of Occupancy, or (as in the
case of a new Building with a Temporary Certificate of Occupancy) involves the
initial inclusion of the Premises on the Certificate of Occupancy, the Tenant must
utilize the services of Landlord’s consultant. 
The Tenant shall be responsible for coordination with the consultant,
and for all costs in connection with such consultant’s services.

 

15)                                The Tenant will be responsible for keeping,
on Premises, a copy of all required Building Department approved applications,
drawings, permits, and sign-offs during and after completion of construction
and shall deliver same to Landlord at the expiration of the Lease.

 

16)                                The following penalties will be assessed
to all tenants that do not comply with submission of Building Department
documents and sign-off procedures as outlined in Section B hereof:

 

a)                                      Future Building Department documents that
require Landlord’s signature will not be signed nor will work be allowed to
commence until complete submission of all required past Building Department
documents have been received.

 

b)                                     The final payment of any leasehold
improvement allowance will not be released to Tenant until all Building
Department documents and sign-offs have been received.

 

17)                                The attachment of any work to Building
window mullions, HVAC enclosures, window soffets, will not be permitted.

 

F-5

 

18)                                Drywall partitions or installations abutting
window mullions must allow for the operation of pivoting windows where
applicable.

 

19)                                Electrical wire mold will not be
permitted without written approval from Landlord.

 

20)                                Chasing of structural slab or Building
masonry walls will not be permitted unless special consent is given by
Landlord.

 

21)                                The attachment of drywall metal studs or
track to mechanical, electrical, plumbing, sprinkler, or any Building systems
will not be permitted.

 

22)                                All valves or equipment controlling
Building systems or Tenant systems must be tagged and identified.

 

23)                                Access doors must be provided to all
Building equipment and Tenant equipment.

 

24)                                Tenant’s design consultant is responsible
to ensure that base Building systems are adequately sized to meet Tenant’s
requirements.  Tenant shall be
responsible for alterations to any existing HVAC ductwork or system and shall
ensure that such work is integrated so as not to adversely affect the Building
system.

 

25)                                All locking devices must be keyed and
mastered to Building keying system.  Two (2) individual
keys must be supplied to the Building Manager.

 

26)                                All hardware is to match Building
standards.

 

27)                                Tenant shall not install any outside
louvers without Landlord’s prior written approval.  Detailed sketches of all proposed louvers
shall be submitted for Landlord’s approval which approval may be granted or
withheld in Landlord’s sole discretion.

 

28)                                All unused wiring, conduit, equipment,
materials, or previously installed work, no longer needed, must be removed.

 

29)                                Any connections to Building systems must
be of the same materials as existing Building standards.

 

30)                                No exposed piping of any kind will be
permitted.

 

31)                                Any signage, window dressing, or Tenant
decor visible from outside the Tenant’s Premises must receive written approval
from Landlord prior to installation.

 

32)                                The modification of any elevator
equipment must receive prior written approval from Landlord.  All elevator devices must remain accessible
for maintenance and must conform to Building standards.

 

F-6

 

33)                                Tenant is not to mount any equipment in
Building Electrical Closets, Telephone Closets, or Mechanical Equipment Rooms
without prior written approval from Landlord.

 

34)                                Tenant is responsible to ensure that all
work is performed in a normal, acceptable, and safe manner.

 

D.                                    Contractors Agreement; Insurance
Requirements

 

[To be retyped on Letterhead
of Tenant’s General Contractor, addressed to Landlord]

 

Tenant:

 

Premises:

 

The undersigned
contractor or subcontractor (hereinafter called “Contractor”) has been
hired by the Tenant or occupant (hereinafter called “Tenant”) of the
Building named above or by Tenant’s contractor to perform certain work
(hereinafter called “ Work”) for Tenant in the Tenant’s Premises in the
Building.  Contractor and Tenant have
requested the undersigned Landlord (hereinafter called “Landlord”) to
grant Contractor access to the Building and its facilities in connection with
the performance of the Work and Landlord agrees to grant such access to
Contractor upon and subject to the following terms and conditions:

 

1)                                      Contractor agrees to indemnify and save
harmless the Landlord, and its respective officers, employees and agents and
their affiliates, subsidiaries, and partners, and each of them, from and with
respect to any claims, demands, suits, liabilities, losses and expenses,
including reasonable attorneys’ fees, arising out of or in connection with the
Work (and/or imposed by law upon any or all of them) because of personal
injuries, including death at any time resulting therefrom, and loss of or
damage to property, including consequential damages, whether such injuries to
persons or property are claimed to be due to negligence of the Contractor,
Tenant, Landlord or any other party entitled to be indemnified as aforesaid
except to the extent specifically prohibited by law (and any such prohibition
shall not void this Agreement but shall be applied only to the minimum extent
required by law).

 

2)                                      Contractor shall provide and maintain at
its own expense, until completion of Work, the following insurance:

 

a)                                      Workers’ Compensation and Employers’
Liability Insurance covering each and every workman employed in, about or upon
the Work, as provided for in each and every statute applicable to Workers’
Compensation and Employers’ Liability Insurance.

 

b)                                     Comprehensive General Liability Insurance
Including Coverage for Completed Operations, Broad Form Property Damage “XCU”
exclusion if any deleted, and Contractual Liability (to specifically include coverage
for 

 

F-7

 

the indemnification clause of this Agreement) for not less than the
following limits:

 

	
  Combined Single Limit 

  Bodily Injury and 

  Property Damage Liability:

  	
   

  	
  $5,000,000

  	
   

  
	
  (written on a per occurrence basis)

  	
   

  	
   

  	
   

  

 

c)                                      Comprehensive Automobile Liability
Insurance (covering all owned, non-owned and/or hired motor
vehicles to be used in connection with the Work) for not less than the
following limits:

 

	
  Bodily Injury:

  	
   

  	
  $5,000,000 per person 

  $5,000,000 per occurrence

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Property Damage:

  	
   

  	
  $5,000,000 per occurrence

  	
   

  

 

Contractor shall furnish
a certificate from its insurance carrier or carriers to the Building office
before commencing the Work, showing that it has complied with the above
requirements regarding insurance and providing that the insurer will give
Landlord ten (10) days prior written notice of the cancellation of any of
the foregoing policies.

 

3)                                      Contractor shall require all of its major
subcontractors engaged in the Work whose engagement shall (x) include any
work on any of the Building systems or (y) cost an aggregate amount
(including labor and materials) of $100,000 or more to provide the following
insurance:

 

a)                                      Comprehensive General Liability Insurance
Including Protective and Contractual Liability Coverages with limits of
liability at least equal to the above stated limits.

 

b)                                     Comprehensive Automobile Liability
Insurance (covering all owner, non-owned and/or hired motor vehicles to be used
in connection with the Work) for not less than the following limits:

 

	
  Bodily Injury:

  	
   

  	
  $5,000,000 per person

  $5,000,000 per occurrence

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Property Damage:

  	
   

  	
  $5,000,000 per occurrence

  	
   

  

 

4)                                      Contractor shall require all of its minor
subcontractors engaged in the Work whose engagement shall (x) not
include any work on any of the Building systems and (y) cost less than
an aggregate amount (including labor and materials) of $100,000 to provide the
following insurance:

 

F-8

 

a)                                      Comprehensive General Liability Insurance
Including Coverage for Completed Operations, Broad Form Property Damage “XCU”
exclusion if any deleted, and Contractual Liability (to specifically include
coverage for the indemnification clause of this Agreement) for not less than
the following limits:

 

	
  Combined Single Limit 

  Bodily Injury and 

  Property Damage Liability:

  	
   

  	
  $2,000,000

  	
   

  
	
  (written on a per occurrence basis)

  	
   

  	
   

  	
   

  

 

b)                                     Comprehensive Automobile Liability
Insurance (covering all owned, non-owned and/or hired motor
vehicles to be used in connection with the Work) for not less than the
following limits:

 

	
  Bodily Injury:

  	
   

  	
  $2,000,000 per person

  $2,000,000 per occurrence

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Property Damage:

  	
   

  	
  $2,000,000 per occurrence

  	
   

  

 

Upon the request of
Landlord, Contractor shall require all of its subcontractors engaged in the
Work to execute an Insurance Requirements agreement in the same form as this
Agreement.

 

Agreed to and executed
this             
day of          ,
20      .

 

	
  Landlord:

  	
   

  	
  Contractor:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

F-9

 

EXHIBIT
G

 

Cleaning
Specifications

 

General (Tenant Areas -
performed at night)

Monday - Friday (Excluding Holidays)

 

1.             Non-Carpeted
Floors

Sweep, once per night using a chemically treated cloth.

 

2.             Carpeted Floors

Remove litter, four nights per week and vacuum, once per week.

 

3.             Waste Baskets

·              Tenant is responsible to
separate recyclable waste.

·              Empty once per night.

·              Change plastic liner once
per week at night (landlord to furnish liners).

 

4.             Telephones

Damp wipe, once per night.

 

5.             Ash Trays and
Cigarette Urns

Empty and damp wipe, once per night.

 

6.             Water Fountains

Wash and polish, once per night.

 

7.             Base Building
Service Closets

Wash, once per night and keep free of debris at all times.

 

8.             Furniture and
Fixtures

Dust non-fabric surfaces, once per night. 
Papers on desk shall not be disturbed.

 

9.             Window Sills

Dust, one per week.

 

10.           Chair Rails

Dust, once per week.

 

11.           Baseboards

Dust, once per week.

 

12.           Tiled Areas Facing Elevators/Public Corridors

Damp mop, once per week.

 

13.           Tiled Reception Areas

Damp mop, once per week.

 

G-1

 

14.           Pictures, Picture Frames

Dust, once per month.

 

15.           Venetian Blinds

Dust, once every three (3) months.

 

16.           Ventilation Louvers

Dust exterior only, twice per annum/six-month intervals.

 

17.           Lighting Fixtures

Dust exterior only, twice per annum/six-month intervals.

 

18.           High Dusting

Perform, twice per annum/six-month intervals.

 

19.           Window Cleaning

·              Inside surface of exterior
windows to be cleaned quarterly.

·              Exterior surface of exterior
windows to be cleaned quarterly (weather permitting).

Lavatories (Base Building - performed at night)

Monday-Friday (Excluding Holidays)

 

20.           Floors

·              Sweep, once per night.

·              Remove all foreign material
(i.e. gum, tar, etc.), once per night.

·              Wet mop with disinfectant,
once per night.

·              Machine scrub floors, once
per month.

 

21.           Mirrors, Counter Tops, Bright Work

Clean and polish, once per night.

 

22.           Faucets, Flushometers, Plumbing

Clean and polish, once per night.

 

23.           Basins, Bowls, Urinals

Wash and scour, once per night using a non-caustic, strong disinfectant.

 

24.           Toilet Seats

Wash and scour (both sides), once per night using a non-caustic, strong
disinfectant.

 

25.           Partitions

Disinfect and damp wipe, once per night.

Wash and scour, once per week using a non-caustic, strong disinfectant.

 

26.           Tile Walls (without urinals)

Wash and scour, once per month using a non-caustic, strong disinfectant.

 

G-2

 

27.           Tile Walls (with urinals)

Disinfect and damp wipe, once per night.

Wash and scour, once per week using a non-caustic, strong disinfectant.

 

28.           Soap and Towel Dispensers

Clean and polish, once per night.

 

29.           Waste Receptacles

Empty, once per night.

Replace liners, once per week (Landlord to furnish liners).

 

30.           Supplies

Replenish all lavatory supplies, once per night (Landlord to furnish supplies).

 

G-3

 

EXHIBIT
H

 

HVAC
Specifications

 

The base Building HVAC system is designed to perform
in accordance with the following specifications:

 

	
   

  	
   

  	
  Outdoor

  	
   

  	
  Indoor

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Winter

  	
   

  	
  5oF

  	
   

  	
  70oF+/-2oF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Summer

  	
   

  	
  90oF
  dry bulb/74owet bulb

  	
   

  	
  75odry
  bulb+/-2oF

  	
   

  

 

	
  The foregoing
  cooling capacities are based on:

  
	
   

  	
   

  
	
  Population:

  	
  Not more than 1
  person per 100 usable square feet

  
	
   

  	
   

  
	
  Lighting and
  Utility Power:

  	
  Actual load of
  not more than 5 watts per usable square foot (exclusive of Building systems
  and HVAC)

  

 

H-1

 

EXHIBIT
I

Floor
Plans of Offer Space

 

(See
attached.)

 

I-1

 

 

I-2

 

EXHIBIT
J

 

Form of
Non-Disturbance Agreement

 

SUBORDINATION, NONDISTURBANCE AND
ATTORNMENT AGREEMENT

 

THIS SUBORDINATION, NONDISTURBANCE
AND ATTORNMENT AGREEMENT (this “Agreement”)
made as of the        day of
                    
2009, by and among BANK OF AMERICA, NATIONAL ASSOCIATION, as successor by
merger to LaSalle Bank National Association, as Trustee in trust for J.P.
Morgan Chase Commercial Mortgage Securities Corp., Commercial Mortgage
Pass-Trough Certificates, Series 2004-CIBC9 (“Lender”)
and ADVENT SOFTWARE, INC., a
Delaware corporation, having an office at 600 Townsend Street, San Francisco,
California 94103   (“Tenant”).

 

WITNESSETH:

 

WHEREAS, Lender is the
mortgagee or beneficiary under a mortgage or deed of trust (the “Mortgage”) of even date herewith
made by 1114 TrizecHahn-Swig, L.L.C.  (now known as
1114 6th Avenue
Co. LLC (“Landlord”)) to Lender covering
the land (the “Land”)
described on Exhibit “A” attached hereto and all improvements (the “Improvements”) now or hereafter
located on the land (the Land and the Improvements hereinafter collectively
referred to as the “Property”),
which Mortgage secures all amounts payable by Landlord to Lender under that
certain Loan Agreement of even date herewith between Lender and Landlord (the “Loan Agreement”); and

 

WHEREAS, by a lease dated as
of September         , 2009 (which
lease, as the same may have been amended and supplemented, is hereinafter
called the “Lease”), Landlord leased to
Tenant certain space located in the Improvements (the “Premises”);
and

 

WHEREAS, the parties hereto
desire to make the Lease subject and subordinate to the Mortgage and the Loan
Agreement;

 

NOW, THEREFORE, the parties
hereto, in consideration of the covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, hereby agree as follows:

 

1.             The Lease, as the same may hereafter be
modified, amended, extended, renewed, increased, spread, consolidated or
replaced, and all of Tenant’s right, title and interest in and to the Premises
and all rights, remedies and options of Tenant under the Lease, are and shall
be unconditionally subject and subordinate to the Mortgage and the lien
thereof, to all the terms, conditions and provisions of the Mortgage and the
Loan Agreement, to each and every advance made or hereafter made under the Loan
Agreement, and to all renewals, modifications, 

 

J-1

 

consolidations,
replacements, substitutions and extensions of the Mortgage and/or the Loan
Agreement, so that at all times the Mortgage shall be and remain a lien on the
Property prior and superior to the Lease for all purposes; provided, however,
and Lender agrees, that so long as (A) no event has occurred and no
condition exists, which would entitle Landlord to terminate the Lease or would
cause, without further action of Landlord, the termination of the Lease or
would entitle Landlord to dispossess Tenant from the Premises, and (B) the
Lease shall be in full force and effect, then Tenant’s leasehold estate under
the Lease shall not be terminated, Tenant’s possession of the Premises shall
not be disturbed by Lender and Lender will accept the attornment of Tenant.

 

2.             Notwithstanding anything to the contrary
contained in the Lease, Tenant hereby agrees that in the event of any act,
omission or default by Landlord or Landlord’s agents, employees, contractors,
licensees or invitees which would give Tenant the right, either immediately or
after the lapse of a period of time, to terminate the Lease, or to claim a
partial or total eviction, or to reduce the rent payable thereunder or credit
or offset any amounts against future rents payable thereunder, Tenant will not
exercise any such right (i) until it has given written notice of such act,
omission or default to Lender by delivering notice of such act, omission or
default, in accordance with Paragraph 8 hereof, and (ii) until a period of
sixty (60) days for remedying such act, omission or default shall have elapsed
following the giving of such notice. 
Notwithstanding the foregoing, in the case of any default of Landlord
which cannot be cured within such sixty (60) day period, if Lender shall within
such period proceed promptly to cure the same (including such time as may be
necessary to acquire possession of the Premises if possession is necessary to
effect such cure) and thereafter shall prosecute the curing of such default
with diligence, then the time within which such default may be cured by Lender
shall be extended for such period as may be necessary to complete the curing of
the same with diligence but not to exceed 120 days following such  notice. 
Lender’s cure of Landlord’s default shall not be considered an
assumption by Lender of Landlord’s other obligations under the Lease.  Unless Lender otherwise agrees in writing,
Landlord shall remain solely liable to perform Landlord’s obligations under the
Lease (but only to the extent required by and subject to the limitation
included with the Lease), both before and after Lender’s exercise of any right
or remedy under this Agreement.  If
Lender or any successor or assign becomes obligated to perform as Landlord
under the Lease, such person or entity will be released from those obligations
when such person or entity assigns, sells or otherwise transfers its interest
in the Premises or the Property.

 

3.             Without limitation of any of the provisions
of the Lease, in the event that Lender succeeds to the interest of Landlord or
any successor to Landlord, then subject to the provisions of this Agreement
including, without limitation, Paragraph 1 above, the Lease shall
nevertheless continue in full force and effect and Tenant shall and does hereby
agree to attorn to and accept Lender  and
to recognize Lender as its Landlord under the Lease for the then remaining
balance of the term thereof, and upon request of Lender, Tenant shall execute
and deliver to Lender an agreement of attornment reasonably satisfactory to
Lender.

 

4.             If Lender or any other subsequent purchaser
of the Property succeeds to the interest of Landlord or any successor to
Landlord (Lender or such other purchaser being hereinafter referred to as “Purchaser”), in no event shall
Purchaser have any liability for any act or omission of any prior landlord
under the Lease which occurs prior to the date Purchaser succeeds to the rights
of Landlord under the Lease unless such act or omission continues from 

 

J-2

 

and
after the date Purchaser so succeeds to the interest of the Landlord under the
lease, nor any liability for claims, offsets (except as specifically permitted
under the Lease) or defenses which Tenant might have had against Landlord
unless the act or omission giving rise to such claim, offset or defense
continues from and after the date Purchaser so succeeds to the interest of the
Landlord under the lease.  In no event
shall Purchaser have any personal liability as successor to Landlord and Tenant
shall look only to the estate and property of Purchaser in the Land and the
Improvements for the satisfaction of Tenant’s remedies for the collection of a
judgment (or other judicial process) requiring the payment of money in the
event of any default by Purchaser as Landlord under the Lease, and no other
property or assets of Purchaser shall be subject to levy, execution or other
enforcement procedure for the satisfaction of Tenant’s remedies under or with
respect to the Lease.

 

5.             Lender and Tenant agree that upon the
conveyance of the Property by reason of the foreclosure of the Mortgage or the
acceptance of a deed or assignment in lieu of foreclosure or otherwise, Lender,
as holder of the Mortgage, and Purchaser as Landlord under the Lease (the “Transferee”) shall not be (a) liable
for the return of rental security deposits, if any, paid by Tenant to Landlord
in accordance with the Lease unless such sums are actually received by the
Transferee, (b) bound by any payment of rents, additional rents or other
sums which Tenant may have paid more than one (1) month in advance to any
prior Landlord unless (i) such sums are actually received by the
Transferee or (ii) such prepayment shall have been expressly approved of
by the Transferee, (c) bound to make any payment to Tenant which was
required under the Lease, or otherwise, to be made prior to the time the
Transferee succeeded to Landlord’s interest, (d) bound by any agreement
amending, modifying or terminating the Lease made without the Lender’s prior
written consent prior to the time the Transferee succeeded to Landlord’s
interest or (d) bound by any assignment of the Lease or sublease of the
Property, or any portion thereof, made prior to the time the Transferee succeeded
to Landlord’s interest other than if pursuant to the provisions of the
Lease.  Notwithstanding anything to the
contrary set forth in this Agreement, Tenant agrees that Lender, as holder of
the Mortgage, and Purchaser as Landlord under the Lease if it succeeds to that
position, shall in no event have any liability for the performance or
completion of any initial work or installations or for any loan or contribution
or rent concession towards initial work, which are required to be made by
Landlord (A) under the Lease or under any related Lease documents or (B) for
any space which may hereafter become part of said Premises, and any such
requirement shall be inoperative in the event Purchaser succeeds to the
position of Landlord prior to the completion or performance thereof; provided,
however, if, after succeeding to Landlord’s interest under the Lease, any
Purchaser or successor owner fails or refuses to perform or complete any such
initial work or installations which Landlord would have been obligated to
perform and complete or fails or refuses to make any loan or contribution
towards initial work which are required to be made by Landlord, Tenant shall be
entitled to exercise any and all remedies provided to Tenant by the Lease for a
failure by Landlord to perform or complete any such initial work or
installations or to make such loan or contribution, other than direct recourse
against Lender or such Purchaser.  Tenant
further agrees with Lender that Tenant will not voluntarily subordinate the
Lease to any lien or encumbrance without Lender’s prior written consent.

 

6.             This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original but all of which
together shall constitute and be construed as one and the same instrument.

 

J-3

 

7.             All remedies which Lender may have against
Landlord provided herein, if any, are cumulative and shall be in addition to
any and all other rights and remedies provided by law and by other agreements
between Lender and Landlord or others. 
If any party consists of multiple individuals or entities, each of same
shall be jointly and severally liable for the obligations of such party
hereunder.

 

8.             All notices to be given under this Agreement
shall be in writing and shall be deemed served upon receipt by the addressee if
served personally or, if mailed, upon the first to occur of receipt or the
refusal of delivery as shown on a return receipt, after deposit in the United
States Postal Service certified mail, postage prepaid, addressed to the address
of Landlord, Tenant or Lender appearing below, or, if sent by telegram, when
delivered by or refused upon attempted delivery by the telegraph office.

 

	
  If to Lender:

  	
  Wells Fargo Bank, NA, as
  Master Servicer

  
	
   

  	
  1320 Willow Pass Road,
  Suite 205

  
	
   

  	
  Concord, CA 94517

  
	
   

  	
  Facsimile No.:
  925-685-1259

  
	
   

  	
   

  
	
  with a copy to:

  	
  Cadwalader,
  Wickersham & Taft LLP

  
	
   

  	
  100 Maiden Lane

  
	
   

  	
  New York, New York 10038

  
	
   

  	
  Attention: Fredric L.
  Altschuler, Esq.

  
	
   

  	
  Facsimile No. (212)
  504-6666

  
	
   

  	
   

  
	
  If
  to Tenant:

  	
  Advent
  Software, Inc.

  
	
   

  	
  600
  Townsend Street

  
	
   

  	
  San
  Francisco, California 94103

  
	
   

  	
  Attention:
  Assistant Controller

  
	
   

  	
  Facsimile
  No.:                       

  
	
   

  	
   

  
	
  with
  a copy to:

  	
  Advent
  Software, Inc.

  
	
   

  	
  600
  Townsend Street

  
	
   

  	
  San
  Francisco, California 94103

  
	
   

  	
  Attention:
  Facilities Department

  
	
   

  	
  Facsimile
  No.:                       

  

 

Such
addresses may be changed by notice given in the same manner.  If any party consists of multiple individuals
or entities, then notice to any one of same shall be deemed notice to such
party.

 

10.           This Agreement shall be interpreted and construed in accordance with
and governed by the laws of the state in which the Property is located.  If any term, covenant or condition of this
Agreement is held to be invalid, illegal or unenforceable in any respect, this
Agreement shall be construed without such provision.

 

J-4

 

11.           This Agreement shall apply to, bind and inure to the benefit of the
parties hereto and their respective successors and assigns.  As used herein “Lender” shall include any
subsequent holder of the Mortgage.

 

12.           Tenant acknowledges that Landlord has assigned to Lender its right,
title and interest in the Lease and to the rents, issues and profits of the
Property and the Property pursuant to the Mortgage, and that Landlord has been
granted the license to collect such rents provided no Event of Default has
occurred under, and as defined in, the Mortgage.  Tenant agrees to pay all rents and other
amounts due under the Lease directly to Lender upon receipt of written demand
by Lender, and Landlord hereby consents thereto.  The assignment of the Lease to Lender, or the
collection of rents by Lender pursuant to such assignment, shall not obligate
Lender to perform Landlord’s obligations under the Lease.

 

13.           Lender may sell, transfer and deliver the promissory note secured by
the Mortgage (“Note”) and
assign the Mortgage, this Agreement and the other documents executed in
connection therewith to one or more investors in the secondary mortgage market
(“Investors”).  In connection with such sale, Lender may
retain or assign responsibility for servicing the loan, including the Note, the
Mortgage, this Agreement and the other documents executed in connection
therewith, or may delegate some or all of such responsibility and/or
obligations to a servicer including, but not limited to, any subservicer or
master servicer, on behalf of the Investors. 
All references to Lender herein shall refer to and include any such
servicer to the extent applicable.

 

[SIGNATURES
ON FOLLOWING PAGE]

 

J-5

 

IN WITNESS WHEREOF, THE PARTIES HERETO HAVE DULY
EXECUTED THIS AGREEMENT AS OF THE DAY AND YEAR FIRST ABOVE WRITTEN.

 

 

	
   

  	
  LENDER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK
  OF AMERICA, NATIONAL ASSOICIATION, as successor by merger to LaSalle Bank
  National Association, as Trustee in trust for J.P. Morgan Chase Commercial
  Mortgage Securities Corp., Commercial Mortgage Pass-Trough Certificates,
  Series 2004-CIBC9

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  WELLS
  FARGO BANK, NATIONAL ASSOCIATION, as Sub-Servicer under the Sub-Servicing
  Agreement, dated as of June 30, 2004, by and between GMAC Commercial
  Mortgage Corporation, Master Servicer and Wells Fargo Bank, National
  Association, Sub-Servicer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  ADVENT SOFTWARE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

J-6

 

ACKNOWLEDGMENTS

 

	
  STATE
  OF

  	
  )

  
	
   

  	
  )

  
	
  COUNTY OF

  	
  )

  

 

On
                      
      , 2009, before me,
                                                      ,
personally appeared
                          
                                       ,
personally known to me (or proved to me on the basis of satisfactory evidence)
to be the person(s) whose name(s) is (are) subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on
the instrument the person(s), or the entity upon behalf of which the person(s) acted,
executed the instrument.

 

 

	
   

  	
  Signature

  	
   

  
	
   

  	
   

  
	
   

  	
  My commission expires:

  	
   

  
				

 

 

	
  STATE
  OF

  	
  )

  
	
   

  	
  )

  
	
  COUNTY OF

  	
  )

  

 

 

On
                      
      , 2009, before me,
                                                          ,
personally appeared
                         
                            ,
personally known to me (or proved to me on the basis of satisfactory evidence)
to be the person(s) whose name(s) is (are) subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on
the instrument the person(s), or the entity upon behalf of which the person(s) acted,
executed the instrument.

 

 

	
   

  	
  Signature

  	
   

  
	
   

  	
   

  
	
   

  	
  My commission expires:

  	
   

  
				

 

J-7

 

EXHIBIT
“A” — PROPERTY DESCRIPTION

 

All that certain lot, piece or parcel of land, situate, lying
and being in the Borough of Manhattan, City, County and State of New York,
bounded and described as follows:

 

BEGINNING at a point on the northerly side of West 42nd
Street, distant 208 feet easterly from the northeasterly corner of 42nd Street
and Avenue of the Americas (formerly 6th Avenue);

 

RUNNING THENCE easterly along the northerly side of 42nd
Street, 234 feet;

 

THENCE northerly parallel with Avenue of the Americas, 200
feet 10 inches to the southerly side of 43rd Street;

 

THENCE westerly along the southerly side of 43rd Street, 442
feet to the easterly side of Avenue of the Americas;

 

THENCE southerly along the easterly side of Avenue of the
Americas, 100 feet 5 inches to the center line of the block;

 

THENCE easterly parallel with 42nd Street, 208 feet;

 

THENCE southerly parallel with Avenue of the Americas, 100
feet 5 inches to the northerly side of 42nd Street, at the point or place of
BEGINNING.

 

J-8Exhibit 10.1

 

Confidential Treatment Requested. 
Confidential portions of this document have been redacted and have been
separately filed with the Commission.

 

BLACKHAWK BIOFUELS, LLC TOLL PROCESSING AGREEMENT

 

This Blackhawk Biofuels, LLC Toll Processing Agreement (the “Agreement”)
is made and entered into effective October 1, 2009, by and between
Blackhawk Biofuels, LLC a limited liability company organized and existing
under the laws of the state of Delaware, with offices at 22 South Chicago
Avenue, Freeport, Illinois 61032 (“Blackhawk Biofuels”). and REG Marketing &
Logistics Group, LLC, an Iowa limited liability company (“REG Marketing”), of
416 S. Bell Avenue, PO Box 888, Ames, Iowa 50010 (each a “Party,” and
collectively the “Parties”).

 

Recitals

 

A.                                   Blackhawk
Biofuels is in the business of manufacturing and processing biodiesel from
feedstock at its biodiesel processing facility located at Danville, IL (the “Facility”).

 

B.                                     REG Marketing
desires to arrange for the purchase and delivery of animal fats and other
feedstocks (as specified by the provisions of Section 7 hereafter, herein “Feedstocks”)
to Blackhawk Biofuels for processing into biodiesel meeting the specifications
set out in Section 8 hereafter (herein “Biodiesel”) and Crude Glycerin,
Fatty Acids and Soapstock (“Co-products”) pursuant to a toll processing
arrangement.  Blackhawk Biofuels desires
that REG Marketing arrange for the delivery of Feedstocks for processing at the
Facility.

 

The Agreement

 

In
consideration of the mutual benefits and obligations herein provided and other
good and valuable consideration, Blackhawk Biofuels and REG Marketing agree as
follows:

 

1.                                       Offers to Deliver Feedstocks for Processing.  REG Marketing may
offer to deliver Feedstocks to Blackhawk Biofuels’s Facility at Danville, IL,
during the term of this Agreement.

 

(a)                                  Orders within Facility Commitment.  REG Marketing shall
order the processing of 11.0 million pounds of Feedstocks at the Facility (“Facility
Commitment”). Any such order shall set out the type and quantity of Feedstocks,
and the Production Week for which such Feedstocks are intended for processing (“Order”).  If such Order is timely made, then unless
otherwise agreed by the Parties REG Marketing shall deliver the Feedstocks to
Blackhawk Biofuels in time for production of the Biodiesel, Blackhawk Biofuels
shall process the Feedstocks and test and certify the Biodiesel as meeting the
agreed upon specifications under the applicable Order during such Production
Week, and REG Marketing shall arrange to pick up the resulting Biodiesel during
the two weeks immediately following such Production Week.  Blackhawk Biofuels agrees to provide written
acknowledgment of all Orders placed by REG Marketing.  For purposes of this Agreement, a “Production
Week” shall mean a calendar week beginning at 8:00 a.m. on Monday and
ending at 7:59 a.m. on the following Monday, with weeks designated for
pick up of Biodiesel measured in similar fashion.

 

1

 

As
an example, for the Production Week commencing January 19, 2009, REG
Marketing would need to have delivered its Order for such Production Week on or
before 5:00 p.m. on Monday, January 5, 2009.  If such Order has been timely delivered to
Blackhawk Biofuels, REG Marketing would then deliver in the Feedstocks required
for such Production Week both before and during the production week.  Blackhawk Biofuels would then have the
Production Week of January 19 through January 26, 2009, to complete
production, test and certify the Biodiesel meets the agreed upon specifications
under the applicable Order.  REG
Marketing would then have from January 26 through 7:59 a.m. on February 9,
2009, to pick up the Biodiesel produced for such Production Week.  REG Marketing shall develop a sample “Order/Nomination”
form to be used by the Parties, which shall be attached as Exhibit A
hereto.

 

Any Feedstocks purchased by Bunge North
America, Inc. (“Bunge”) pursuant to the terms of a Feedstock Purchase and
Sale Agreement dated June 30, 2009 (the “Feedstock Agreement”) by and
between Blackhawk Biofuels, REG Marketing and Bunge shall be included in
determining whether the Facility Commitment has been met.  Any purchase of Feedstocks by Bunge, however,
shall be governed exclusively by the terms of the Feedstock Agreement and such
purchases shall not be subject to the terms of this Agreement.

 

(b)                                 Offers in Excess of the Facility Commitment.  REG Marketing may
offer to deliver additional Feedstocks beyond the Facility Commitment, subject
to Blackhawk Biofuels’s acceptance.  Any
such offer (“Nomination”) shall set out the type and quantity of Feedstocks,
the Production Week for which such Feedstocks are intended for production, and
advise of the time period during which Blackhawk Biofuels shall be required to
communicate Blackhawk Biofuels’s acceptance back to REG Marketing (“Offer
Period”).  The parties agree that such
Offer Period will not expire prior to 12:00 o’clock noon, local time at the
Facility, on the business day following that day during which the Nomination is
delivered, and provided further that (unless waived by Blackhawk Biofuels) a
Nomination shall not propose a Feedstocks delivery schedule with first delivery
date less than seven (7) calendar days after the end of the Offer
Period.  If a Nomination is accepted by
Blackhawk Biofuels (as set out hereafter), then (unless otherwise agreed by the
Parties) REG Marketing agrees to deliver the Feedstocks to Blackhawk Biofuels
pursuant to the terms of the Nomination prior to such Production Week to
utilize in the production of the Biodiesel, Blackhawk Biofuels shall during
such Production Week process the Feedstocks and test and certify the Biodiesel
as meeting the agreed upon specifications under the applicable Nomination, and
REG Marketing shall arrange to pick up the resulting Biodiesel during the two
weeks immediately following such Production Week.  The sample “Order/Nomination” form to be used
by the Parties is attached as Exhibit A hereto.

 

2

 

*** Confidential material redacted and filed separately
with the Commission.

 

2.                                       Agreement to Process Orders; Consideration of Nominations.

 

(a)                                  Orders within Facility Commitment. Blackhawk Biofuels agrees to process Feedstocks for all
Orders received totaling up to 2.75 million pounds per Production Week, such
processing to be within the time frame as set out in Section 1(a) above
(unless otherwise agreed by the Parties). 
Blackhawk and REG Marketing agree that any shortfall in biodiesel
production or shipments due in the previous Agreement dated July 1st, 2009
may be made up under this Agreement without penalties.

 

(b)                                 Nominations in Excess of Facility Commitment.  In addition, should
REG Marketing offer to deliver Feedstocks in excess of such Facility
Commitment, Blackhawk Biofuels will consider any such Nomination received, and
shall have the right (but not any obligation) to accept Nominations received
from REG Marketing by notice given during the Offer Period.  If Blackhawk Biofuels gives timely acceptance
of a Nomination (pursuant to the provisions set out in this Agreement, herein
an “Acceptance”), then Blackhawk Biofuels agrees to process Feedstocks received
pursuant to the terms of the Nomination (and such other applicable provisions
as set out herein).

 

3.                                       Manner of Extending Order, Nominations, Acceptances.  Notwithstanding any
provisions of Section 26(a) to the contrary, the Parties may submit
Orders, Nominations and Acceptances by telephone or email, provided that any
Order, Nomination or Acceptance submitted by telephone must be followed by
timely confirmation by email.

 

4.                                       Toll Fees and Payment.  Blackhawk Biofuels shall be paid a toll fee
of $ *** for every gallon of Biodiesel at standard temperature and pressure
delivered to REG Marketing, produced at the Facility from the Feedstocks
delivered by REG Marketing for all volumes shipped up to 2,500,000 gallons in a
calendar month. Blackhawk Biofuels shall be paid a toll fee of $ *** for every
gallon of Biodiesel at standard temperature and pressure delivered to REG
Marketing, produced at the Facility from the Feedstocks delivered by REG
Marketing for all volumes shipped in excess of 2,500,000 gallons in a calendar
month. Payment shall be made as follows:

 

(a)                                  The toll Fee under the terms of such Orders or Nominations
by wired funds to Blackhawk Biofuels on the first business day following the 15th for Biodiesel
delivered to REG Marketing from the 1st to the 15th of the month and on
the first business day following the last day of each month for Biodiesel
delivered to REG Marketing on the 16th to the last day of
the month. Delivered to REG Marketing shall mean Biodiesel meeting
specifications loaded per shipping instructions FOB Danville, IL.

 

5.                                       Co-Products.  REG Marketing shall also be entitled to
receive at no additional cost, all glycerin and Fatty Acid produced as a result
of the processing of the Feedstocks.

 

3

 

*** Confidential material redacted and filed separately
with the Commission.

 

6.                                       Methanol and Catalyst.  REG Marketing shall be responsible for the purchase and
delivery of methanol and catalyst to the Facility. The maximum allowed usage of
methanol shall be *** gal of methanol per gallon of biodiesel. The maximum
allowed usage of catalyst shall be *** lbs per gallon of biodiesel. Blackhawk
Biofuels will reimburse REG Marketing for usage of methanol and catalyst above
the maximums. The reimbursement will be paid for overusage at the average price of
the chemicals multiplied by the overusage amount based on the biodiesel
produced on a monthly basis.  REG
Marketing will invoice Blackhawk Biofuels within the first week of the
following month.  Payment terms will be 7
days from receipt of invoice from REG Marketing.  If the actual positive or negative usage variance
performance is greater than 10% from the values given above, the parties will
use data gathered while producing under steady state conditions and adjust the
maximum allowed usages with approval to not be unreasonably withheld,
conditioned or delayed by either party. 
Any changes will be contained in an addendum to this Agreement.

 

7.                                       Maximum Feedstock Usage and Overusage.  In consideration of
the Toll Fee and handling of co-products agreed upon, Blackhawk Biofuels agrees
the Maximum Feedstock Usage(MFU) per Pound of Delivered Biodiesel shall be as
defined in Exhibit B for each Feedstock Type.

 

For feedstocks where a MFU value is
clearly identified and not calculated, the actual overuse, if any, will be
calculated as follows:

 

Overusage based on identified
MCU = A – ( B x MFU)

 

Where A = Actual pounds of
Feedstock delivered from aggregate BOL’s

 

B = Biodiesel produced from
Feedstock in gallons at standard conditions

 

MCU = defined value for
feedstock type

 

For higher FFA feedstocks or blends of
feedstocks that do not have an identified MFU and require the calculation, a
daily flow proportioned representative composite sample shall be tested and the
resulting %FFA will be used in the calculation. for MFU for the resulting
production volume.  For feedstocks where
a MFU value is  calculated and not
clearly identified, the actual overuse, if any, will be calculated as follows:

 

Overusage
for High FFA and Blends based on MCU calculation = C – (B x MFU)

 

Where C = Actual pounds of
Feedstock  delivered from aggregate BOL’s

 

B = Biodiesel produced from
Feedstock in gallons at standard conditions

 

MFU = “Exhibit B
calculation *1” using daily flow proportioned representative composite sample

 

The reimbursement will be paid for overusage at the
average price of the feedstock multiplied by the overusage amount based on the
biodiesel produced on a monthly basis. 
REG Marketing will invoice Blackhawk Biofuels within the first week of
the following month.  Payment terms will 

 

4

 

be 7 days
from receipt of invoice from REG Marketing. 
If the actual positive or negative usage variance performance is greater
than 2% from the values given or calculated in Exhibit B, the parties will
use data gathered while producing under steady state conditions and adjust the
defined MFU  or formula “*1” with
approval to not be unreasonably withheld, conditioned or delayed by either
party.  Any changes will be contained in
an addendum to this Agreement.

 

8.                                       Feedstocks.  The Feedstocks to be delivered to the
Facility pursuant to this Agreement shall comply with the specifications set
forth on Exhibit B attached hereto or the specific purchase order,
whichever is the more restrictive specification.  For Example, if the tallow specification for
FFA in Exhibit B was <4 and the purchase order defined FFA as less than
<2, then <2 shall be the requirement. 
Prior to accepting deliveries of Feedstocks, Blackhawk Biofuels shall
have the right at its expense to inspect and test the tendered Feedstocks to
determine if it meets the specifications required under this Agreement, and if
any such Feedstocks does not meet the required specifications then Blackhawk
Biofuels shall have the right to reject such Feedstocks and require REG
Marketing, at its cost, to replace the same with Feedstocks that meets the
required specifications.  Should REG
Marketing propose any other type of Feedstocks other than identified on Exhibit B,
the Parties shall agree upon the written specifications and MFU applicable to
such additional feedstock, and approve and attach such specifications and MFU
as an addendum to Exhibit B with approval to not be unreasonably withheld,
conditioned or delayed by either party.

 

9.                                       Biodiesel.  The Biodiesel to be produced pursuant to this
Agreement shall comply with the specifications set forth on Exhibit C
attached hereto.  At REG Marketing’s
request, two (2) - one (1) litre samples of the Biodiesel to be
delivered to REG Marketing by Blackhawk Biofuels shall be made available for
testing at REG Marketing’s cost, prior to REG Marketing picking up such
Biodiesel.  Should inspection and testing
determine that any Biodiesel does not meet the required specifications (whether
determined before or after such Biodiesel has been picked up by REG Marketing,
and including after delivery to REG Marketing’s customers), REG Marketing shall
have the right to reject such Biodiesel, and require Blackhawk Biofuels, at its
cost, to replace the same with Biodiesel that meets the required
specifications.

 

10.                                 Term.  The term of this Agreement shall be until September 30th,
2009 and commence upon its signature by the Parties.

 

11.                                 Title.  Except as otherwise provided herein, title to
the Feedstocks delivered by REG Marketing pursuant to this Agreement and title
to the contractual amount of corresponding Biodiesel and Co-products produced
from such Feedstocks shall at all times be and remain with REG Marketing.  Any Feedstocks delivered by REG Marketing
pursuant to the terms and conditions of the Feedstock Agreement, however, shall
at all times be and remain with Bunge until such time as title to such
Feedstocks passes to REG Marketing pursuant to the terms of the Feedstock
Agreement.

 

12.                                 Risk of Loss; Insurance.  Risk of loss to the Feedstocks and the
Biodiesel and Co-Products produced therefrom shall at all times be borne by REG
Marketing, and REG Marketing will maintain such property insurance on the
Feedstocks and the Biodiesel  produced
therefrom as REG Marketing shall determine, in its sole discretion.

 

5

 

Blackhawk Biofuels and REG
Marketing shall each, at its own cost and expense, obtain and maintain, during
the term of this Agreement, comprehensive general liability insurance, in
minimum amounts of Five Million Dollars ($5,000,000) per occurrence for damage,
injury and/or death to persons, and One Million Dollars ($1,000,000) per
occurrence for damage and/or injury to property and Worker’s Compensation
Insurance as required by law.  Such
coverage shall be on a date of occurrence form, and be provided by an insurance
company reasonably satisfactory to the other Party.  Blackhawk Biofuels and REG Marketing shall
each provide the other with proof of such insurance coverage prior to any Feedstocks
being delivered, such insurance naming the other Party as an additional
insured, and providing that the coverage represented thereby shall not be
canceled nor modified unless at least thirty (30) days prior written notice has
been given to the additional insured.

 

13.                                 Inventory Reports.  Blackhawk Biofuels will provide REG Marketing
with daily reports showing the receipt, usage and inventory of Feedstocks,
methanol and catalyst, and shipments, production and inventory of Biodiesel and
Co-products produced.

 

14.                                 Production Costs.  Other than for the cost of the Feedstocks,
methanol, and catalyst purchased and delivered by REG Marketing, Blackhawk
Biofuels shall be responsible for all costs of producing the Biodiesel required
under this Agreement, including without limitation all labor costs and the cost
of utilities, chemicals other than methanol and catalyst and other consumables
used in such production.

 

15.                                 Testing.  Blackhawk Biofuels shall be responsible for
the cost of testing to fully certify the Biodiesel meets the specifications
identified in the Order or Nomination. 
All sampling and testing shall be in conformance with BQ-9000 rules and
regulations.

 

16.                                 Freight Costs.  REG Marketing will bear the cost of all
freight charges for the Feedstocks, methanol, and catalyst purchased by REG
Marketing, and Biodiesel and Co-Products to be produced therefrom, pursuant to
this Agreement.

 

17.                                 Protection of REG Marketing’s Title.  In order to better
evidence REG Marketing’s ownership of the Feedstocks and the Biodiesel produced
therefrom, Blackhawk Biofuels hereby authorizes REG Marketing on its behalf, at
any time and from time to time to file protective financing statements in any
Uniform Commercial Code jurisdiction, which may include without limitation any
initial financing statements and amendments thereto that (i) describe the
Feedstocks, and the Biodiesel that is the subject of this Agreement, and (ii) contain
any other information required or appropriate to be included pursuant to the
Uniform Commercial Code of the state where filed, including that the
organizational identification number of Blackhawk Biofuels is 20-2760722.  Blackhawk Biofuels agrees to furnish any such
information to REG Marketing promptly upon request.  Blackhawk Biofuels will not purport to
pledge, mortgage or create, or suffer to exist a security interest in the
Feedstocks and the Biodiesel that is produced therefrom, in favor of any third
party, and Blackhawk Biofuels, upon the request of REG Marketing or in response
to any inquiry that may be made, will inform any lender, lessor or other third
party that has or may have a lien or security interest or any other interest in
property of Blackhawk Biofuels that REG Marketing is the owner of the
Feedstocks and the Biodiesel that is the subject of this Agreement.  “Notwithstanding anything to the contrary set
forth herein, Blackhawk Biofuels and REG Marketing acknowledge and agree that
pursuant to the terms of the Feedstock Agreement, Bunge shall have title in the
Feedstocks 

 

6

 

purchased by Bunge pursuant to
the terms of the Feedstock Agreement, and Bunge shall have the right to file
precautionary financing statements and amendments and/or continuations thereto
pursuant to the Uniform Commercial Code to further evidence and memorialize its
absolute ownership interest in the Feedstocks.”

 

18.                                 Product Segregation.  REG Marketing, on behalf of Blackhawk
Biofuels, shall be allowed to add additional Feedstocks owned by REG Marketing
as needed to meet the quality and yield requirements hereunder, so long as such
additional Feedstocks have cold flow characteristics that are capable of
meeting the cold flow specifications set out on the applicable Order or
Nomination, and the Biodiesel to be produced shall in any event meet the
specifications required hereunder, as modified by the Order or Nomination and
Acceptance applicable.  In such event,
REG Marketing shall off-set any costs for such additional Feedstocks against
the toll fees to be paid by REG Marketing pursuant to Section 4 hereof.  Pursuant to the terms of the Feedstock
Agreement, Blackhawk Biofuels shall allow Bunge to store the Feedstocks at the
Facility; provided, however, such Feedstocks shall be segregated from any
Feedstocks owned by REG Marketing pursuant to the terms of this Agreement.

 

19.                                 Failure to Process.  If for any reason other than REG Marketing’s
failure to deliver Feedstocks, methanol, and catalyst as required under this
Agreement (and other than a matter covered by the force majeure provisions of
this Agreement) Blackhawk Biofuels fails to process the Feedstocks in to the
certified Biodiesel within the time frame contemplated by this Agreement,
Blackhawk Biofuels will pay to REG Marketing the amount determined by first
dividing the number of pounds of Feedstocks delivered to Blackhawk Biofuels by
the Maximum Feedstock Usage per gallon yield under Section 7 and
converting to gallons to determine the gallons of Biodiesel which should have
been processed (“Required Gallons”); second, subtracting the actual gallons of
Biodiesel received by REG Marketing from the Required Gallons to determine the
number of gallons which Blackhawk Biofuels failed to process (“Biodiesel
Shortage”); and third,  multiply the
Biodiesel Shortage by REG Marketing’s average market price per gallon of
Biodiesel delivered by Blackhawk Biofuels to REG Marketing up to such time of
computation (or if none delivered another reasonable method of determining the
market value of Biodiesel FOB Danville 
as may be agreed by the Parties, or otherwise determined if the Parties
can not so agree).

 

20.                                 Facility Shutdowns.  Blackhawk Biofuels agrees to notify REG
Marketing of any scheduled shutdowns a minimum of thirty (30) days in
advance.  In the event there are any
Facility shutdowns due to unscheduled power or mechanical problems which will
affect receiving or shipping schedules or are anticipated to continue for
twenty-four (24) hours or more Blackhawk Biofuels will notify REG Marketing as
soon as possible.

 

21.                                 Tax Credits; Blending, Shipping & Loading.  Blackhawk Biofuels
will, at the request of REG Marketing, blend the Biodiesel with petroleum
diesel (supplied by Blackhawk Biofuels at its cost) to create B99.9 biodiesel
at no additional charge to REG Marketing. 
Any excise tax or income tax credit or refund, including any blender’s
credit or CCC credit or refund (“Tax Credits”) relating to the Biodiesel
delivered to REG Marketing will be for the account of REG Marketing, and shall
be submitted (as applicable) to the United States Internal Revenue Service (“IRS”)
or other appropriate entity by Blackhawk Biofuels, unless otherwise requested
by REG Marketing  Blackhawk Biofuels will
not claim any Tax Credits relating to the Biodiesel delivered to REG Marketing
without the written consent of REG Marketing.

 

7

 

In addition, Blackhawk Biofuels
shall fulfill the requests regarding additives and load temperature as set out
on the “Shipping/Loadout Request” form supplied by REG Marketing and complete
the loadout information for each load of Biodiesel shipped, all as set out on
the attached as Exhibit D hereto.

 

22.                                 RINs and Biodiesel Certificates.  Blackhawk Biofuels
and REG Marketing shall cooperate with each other to generate Renewable
Identification Numbers (RINs) for the gallons of Biodiesel produced pursuant to
this Agreement, with such RINs to be the property of REG Marketing.  Blackhawk Biofuels and REG Marketing shall
also cooperate with each other to issue biodiesel certificates for the
Biodiesel produced pursuant to this Agreement, which certificates shall be
suitable for REG Marketing’s use in collecting the $1.00 per gallon blender’s
tax credit.  For purposes of clarity, all
gallons for these purposes shall be calculated on a temperature corrected basis
(at 60°
F).

 

23.                                 Force Majeure.  Neither Party hereto shall be liable for any
delay arising from circumstances beyond its control including acts of God, riot
or civil commotion, industrial dispute, fire, flood, drought, act of
government, terrorist acts, war, or sabotage (except failures or delays
resulting from a lack of a Party’s funds), provided that the Party seeking to
be excused shall make every reasonable effort to minimize the delay resulting
therefrom and shall give prompt written notice of the force majeure event to
the other Party.  The obligations of the
Party giving notice, so far as they are affected by the force majeure event,
will be suspended during, but not longer than, the continuance of the force
majeure event.  The affected Party must
act with commercially reasonable diligence to resume performance and notify the
other Party that the force majeure event no longer affects its ability to
perform under the Agreement.

 

24.                                 Independent Contractor.  Blackhawk Biofuels is acting hereunder and
its services are rendered to REG Marketing solely as an independent
contractor.  REG Marketing is not
authorized and shall not contract any obligations in the name of Blackhawk
Biofuels as a result of this Agreement (the Parties understanding that REG
Marketing may have such authority as may arise from other contracts entered in
to by the Parties, and including that Management and Operational Services
Agreement dated August 22, 2006 (“MOSA”)). 
Blackhawk Biofuels accepts full and exclusive liability for the payment
of any and all contributions or taxes for unemployment and workers’
compensation insurance, old age retirement benefits, pensions and annuities now
or hereafter imposed by any federal or state governmental authority which are
measured by wages, salaries or other remuneration paid to persons, and holds
harmless REG Marketing from any such liability. 
Blackhawk Biofuels agrees that in performing its duties contemplated by
this Agreement it shall comply with all applicable federal and state laws,
orders and regulations, and, to its knowledge, represents and warrants that the
Facilities are in compliance with existing environmental laws and regulations
and OSHA standards which may apply to the activities to be performed by
Blackhawk Biofuels hereunder.

 

25.                                 Confidentiality.

 

(a)                                  “Confidential Information” of Blackhawk Biofuels and REG
Marketing includes the terms of this Agreement, the Feedstocks composition, the
biodiesel specifications, all business information of Blackhawk Biofuels and
REG Marketing, including, but not limited to, their respective pricing,
supplier lists, quantities of supplies purchased, all processing and
manufacturing information of 

 

8

 

Blackhawk Biofuels and REG Marketing,
all processes and information used in the processing of Feedstocks into
Biodiesel, and all other confidential or proprietary information of Blackhawk
Biofuels and REG Marketing.  All “Confidential
Information” shall remain the sole property of the original owner of that
information.

 

(b)                                 Blackhawk Biofuels and REG Marketing agree that (except as
necessary for REG Marketing to meet its obligations under the MOSA) they shall
not for any purpose use or disclose to any third party any Confidential
Information not owned by it. Such confidentiality obligations shall survive the
expiration or earlier termination of this Agreement.

 

26.                                 Default.  Each Party will be entitled to all damages
(including costs and reasonable attorney fees incurred in enforcement of such
Party’s rights hereunder) and other rights and remedies available at law or in
equity, in addition to any other remedies as may be provided in this Agreement,
upon the default or other failure to perform of the other Party; provided,
however, that before taking action to enforce such breach or terminating this
Agreement the Party claiming default or failure to perform shall first provide
the defaulting Party with written notice detailing the circumstances of its
failure to meet its obligations hereunder and an opportunity to cure such
failure within ten (10) days of such notice.

 

27.                                 Miscellaneous.

 

(a)                                  Notices.  Any notice (including Nominations and
Acceptances) required or permitted to be given pursuant to this Agreement is
validly given if in writing and: (i) personally delivered; (ii) sent
by electronic facsimile transmission or other means of electronic communication
capable of producing a printed copy and a confirmation of delivery; or (iii) sent
by prepaid registered mail or recognized overnight carrier, addressed to the
applicable party at its address indicated below or to such other address as any
party may specify by notice in writing to the other.  Any notice personally delivered on a business
day will be deemed conclusively to have been effectively given on the date notice
was delivered.  Any notice given by
facsimile or other means of electronic communication will be deemed
conclusively to have been given on the date specified on the confirmation of
such transmission.  Any notice sent by
prepaid registered mail will be deemed conclusively to have been effectively
given when actually received.  Notices
shall be addressed as follows:

 

	
  If to REG Marketing:

  	
   

  	
  416 S. Bell Avenue, PO Box
  888

  
	
   

  	
   

  	
  Ames, IA 50010

  
	
   

  	
   

  	
  Attn: Gary Haer

  
	
   

  	
   

  	
  Fax: (515) 239-8029

  
	
   

  	
   

  	
   

  
	
  If to Blackhawk Biofuels:

  	
   

  	
  210 West Spring Street

  
	
   

  	
   

  	
  Freeport, Illinois 61032

  
	
   

  	
   

  	
  Attn: Ron Mapes

  
	
   

  	
   

  	
  Fax: (815) 235-4727

  

 

9

 

Any party may change the address to which notices are to be sent to it
by giving written notice of such change of address to the other parties in the
manner herein provided for giving notice. 
Any such notice, demand, request or other communication shall be deemed
given when mailed or delivered as aforesaid.

 

(b)                                 Cumulative Remedies.  The rights and remedies provided to Blackhawk
Biofuels and REG Marketing in this Agreement, or otherwise available at law or
in equity, shall be cumulative and may be exercised concurrently or
successively.

 

(c)                                  Governing Law/Choice of Forum.  This Agreement shall be deemed made and
entered unto in the State of Iowa and shall be governed and construed under and
in accordance with the laws of the State of Iowa without resort to said state’s
conflict of laws rules.  The U.S.
District Court for the Southern District of Iowa, or if such court lacks
jurisdiction, the Iowa District Court for Story County, Iowa, shall be the
venue and exclusive proper forum in which to adjudicate any case or controversy
arising either, directly or indirectly, under or in connection with this
Agreement.  The Parties further agree
that, in the event of litigation arising out of or in connection with these
matters, they will not contest or challenge the jurisdiction or venue of these
courts.

 

(d)                                 Amendments.  This Agreement may not be modified or amended
unless a written amendment to this Agreement is executed by REG Marketing and
Blackhawk Biofuels.

 

(e)                                  Severability.  If any provision of this Agreement may be
construed in two ways, one of which would render the provision illegal or
otherwise voidable and unenforceable and the other of which would render the
provision valid and enforceable, such provision shall have the meaning which
renders it valid and enforceable.  The
language of all provisions of this Agreement shall be construed according to
its fair meaning and not strictly against REG Marketing or Blackhawk
Biofuels.  It is the intention of the
Parties that the provisions of this Agreement be enforced to the fullest
extent.  In the event that any court
shall determine that any provision of this Agreement is unenforceable as
written, the Parties agree that the provision shall be amended so that it is
severable and they shall be interpreted and enforced as if all completely
invalid or unenforceable provisions were not contained in this Agreement.  Partially valid and enforceable provisions
shall be enforced to the extent that they are partially valid and enforceable.

 

(f)                                    Captions.  Section captions are used only for
convenience and are in no way to be construed as a part of this Agreement or as
a limitation of the scope of the particular sections to which they refer.  Words of any gender used in this Agreement
shall include any other gender, and words in the singular shall include the
plural where the context requires.

 

10

 

*** Confidential material redacted and filed separately
with the Commission.

 

(g)                                 Assignment.  Neither Party may assign any of its rights in
or delegate any of its duties under this Agreement without the prior written
consent of the other Party.  Notwithstanding
the foregoing, a Party (“Assignor”) may without the need for consent from the
other Party assign any or all of its rights, duties and obligations under this
Agreement to another entity, or to such Party’s affiliate or successor
(collectively herein “Assignee”), if such Assignee expressly assumes all
obligations not otherwise remaining with Assignor hereunder, and Assignor
nonetheless remains responsible hereunder.

 

(h)                                 Interpretation.  This Agreement has been prepared after
extensive negotiation between the Parties hereto, and if any ambiguity is
contained herein, then in resolving such ambiguity, no weight shall be given in
favor of or against either Party solely on account of its drafting this
Agreement.

 

(i)                                     Entire Agreement.  Time is of the essence of this
Agreement.  This Agreement together with
the Exhibits referenced herein constitute the entire agreement by and between
the Parties and all prior written and verbal agreements, proposals,
representations and other communications between the Parties regarding this
tolling arrangement are superseded.

 

(j)                                     Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together will constitute one and the same instrument, and may be executed and
delivered by facsimile signature or similar means, which shall be considered an
original.

 

(k)                                  Most Favored Terms.  Blackhawk Biofuels represents and warrants as
of the date hereof and covenants and agrees from and after the date hereof that
none of the provisions offered to any other person or entity is or will be more
favorable to such person or entity than those offered under this Agreement,
and, if they are or become more favorable to any other person or entity during
the term of this Agreement or any continuation or extension thereof, Blackhawk
Biofuels shall give written notice thereof to REG Marketing, and REG Marketing
shall have the option (which option must be exercised by written notice to
Blackhawk Biofuels with ten (10) business days after notice thereof) to
amend this Agreement to include any such more favorable terms.  If such option is exercised, Blackhawk
Biofuels and REG Marketing shall execute an appropriate written amendment to
this Agreement.

 

(l)                                     MOSA Fee.  In view of the fact that this Agreement is to
process Feedstocks owned by REG Marketing for the benefit of REG Marketing, REG
Marketing agrees that Blackhawk Biofuels shall not be required to pay the
variable fee of $ *** /gal under the MOSA for the volume of Biodiesel processed
for and delivered to REG Marketing under this Agreement.  Blackhawk BioFuels shall continue to pay the
Fixed fee of $ *** per month as outlined in the MOSA.

 

11

 

IN WITNESS WHEREOF, Blackhawk Biofuels
and REG Marketing have executed this Agreement as of the date first shown
above.

 

	
  BLACKHAWK BIOFUELS, LLC

  	
   

  	
  REG MARKETING & LOGISTICS GROUP, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By

  	
  /s/ RONALD L. MAPES

  	
   

  	
  By:

  	
  /s/ GARY HAER

  
	
  Name

  	
  Ronald L. Mapes

  	
   

  	
  Name:

  	
  Gary Haer

  
	
  Title

  	
  Chair

  	
   

  	
  Title:

  	
  Vice President Sales and Marketing

  

 

12

 

 

Exhibit A

 

 (Form of
Order/Nomination)

 

                  ORDER
NUMBER                                                                                                                             or                                                                             
NOMINATION NUMBER

 

	
  For Production Week beginning:

  	
  /

  	
  /

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date Sent to Blackhawk BioFuels, LLC:

  	
  /

  	
  /

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date Reviewed by Blackhawk BioFuels, LLC:

  	
  /

  	
  /

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Blackhawk BioFuels, LLC’s Action: (circle)           ACCEPT                                                 or                                  REJECT

  
	
   

  	
   

  	
   

  	
   

  
	
  Date Accepted/Rejected by Blackhawk BioFuels, LLC:

  	
  /

  	
  /

  	
   

  

 

	
  Product Specification 

  	
  o   REG – 9000 ASTM 

  
	
   

  
	
  o   REG – 9000 EN

  
	
   

  	
   

  
	
  Cold Flow Specification 

  	
  o   Cloud    °C 

  
	
   

  
	
  o   CFPP    °C

  

 

	
  FEEDSTOCK TYPE

  	
   

  	
  Lbs ORDERED

  	
   

  	
  Contr. Yield

  	
   

  	
  Contr. Gallons

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
   

  	
  Date

  	
   

  	
   

  	
  Date

  
	
  REG Marketing & Logistics Group, LLC.

  	
   

  	
  Blackhawk BioFuels, LLC.

  

 

 

*** Confidential material redacted and filed separately
with the Commission.

 

 

“Exhibit B”

 

REG Feedstock Specifications

 

	
   

  	
   

  	
  Analytical 

  	
   

  	
  Free Fatty

  Acid

  (as Oleic)

  	
   

  	
  Moisture

  	
   

  	
  Insoluble

  Impurities

  	
   

  	
  Total MIU

  	
   

  	
  Phosphorus

  	
   

  	
  Color

  (FAC

  Scale)

  	
   

  	
  Maximum

  Feedstock

  Usage per

  Gallon of

  BioDiesel

  (MFU)

  	
   

  
	
   

  	
   

  	
  Method

  	
   

  	
  AOCS Ca

  	
   

  	
  AOCS Ca

  	
   

  	
  AOCS Ca

  	
   

  	
   

  	
   

  	
  AOCS Ca

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Feedstock

  	
   

  	
  Feedstock

  	
   

  	
  5a-40

  	
   

  	
  2c-25

  	
   

  	
  3a-46

  	
   

  	
  calc

  	
   

  	
  12-55

  	
   

  	
  AOCS Ca

  	
   

  	
   

  	
   

  
	
  Group

  	
   

  	
  Type

  	
   

  	
  wt%

  	
   

  	
  wt%

  	
   

  	
  wt%

  	
   

  	
  wt%

  	
   

  	
  ppm

  	
   

  	
  13a-43

  	
   

  	
  Lbs/Gal

  	
   

  
	
   

  	
   

  	
  RB Soy

  	
   

  	
  <0.25

  	
   

  	
  <0.3

  	
   

  	
  <0.05

  	
   

  	
  <1.5

  	
   

  	
  <20

  	
   

  	
  Clear & bright

  	
   

  	
  7.40

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Crude Degummed Soy

  	
   

  	
  <1.0

  	
   

  	
  <0.3

  	
   

  	
  <0.25

  	
   

  	
  <2.0

  	
   

  	
  <200

  	
   

  	
  Typical

  	
   

  	
  7.60

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Distillers Corn Oil

  	
   

  	
  <15

  	
   

  	
  <1.0

  	
   

  	
  <0.5

  	
   

  	
  <2.5

  	
   

  	
  <20

  	
   

  	
  Typical

  	
   

  	
  8.90

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Edible Tallow

  	
   

  	
  <0.75

  	
   

  	
  <0.2

  	
   

  	
  <0.05

  	
   

  	
  <1.0

  	
   

  	
  <400

  	
   

  	
  Typical

  	
   

  	
  7.50

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Animal Fats

  	
   

  	
  Tallow

  	
   

  	
  <4

  	
   

  	
  <1.0

  	
   

  	
  <0.25

  	
   

  	
  <2.0

  	
   

  	
  <400

  	
   

  	
  Typical

  	
   

  	
  * 1)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Poultry Fat/Grease

  	
   

  	
  <8.0

  	
   

  	
  <1.0

  	
   

  	
  <0.25

  	
   

  	
  <2.0

  	
   

  	
  <400

  	
   

  	
  Typical

  	
   

  	
  * 1)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Choice White Grease

  	
   

  	
  <4

  	
   

  	
  <1.0

  	
   

  	
  <0.25

  	
   

  	
  <2.0

  	
   

  	
  <400

  	
   

  	
  Typical

  	
   

  	
  * 1)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Yellow Grease & UFO

  	
   

  	
  < 15

  	
   

  	
  <1.0

  	
   

  	
  <0.25

  	
   

  	
  <2.0

  	
   

  	
  <400

  	
   

  	
  Typical

  	
   

  	
  * 1)

  	
   

  

 

* 1) Calculation for Maximum Feedstock Usage using high FFA feedstocks

 

Maximum Feedstock Usage = (*** x % FFA)
+***

Example: Tested FFA = ***

 

Max Usage = (*** x ***%) + *** = *** lbs/gal
of Biodiesel

 

14

 

 

Attachment C

 

REG-9000Ô ASTM

 

Based
off ASTM D6751 Specifications

 

	
  Test Parameter

  	
   

  	
  REG-9000Ô  

  Limit

  	
   

  	
  Units

  	
   

  	
  Test Method

  (current revision)

  
	
  Cloud
  point:

  	
   

  	
  Per
  Order

  	
   

  	
  °C

  	
   

  	
  D 2500 Allowable
  variance of +/- 2°C

  
	
  Free
  Glycerin:

  	
   

  	
  < 0.014

  	
   

  	
  % Mass

  	
   

  	
  D 6584

  
	
  Total
  Glycerin:

  	
   

  	
  < 0.15

  	
   

  	
  % Mass

  	
   

  	
  D 6584

  
	
  Monoglycerides(1):

  	
   

  	
  < 0.500

  	
   

  	
  % Mass

  	
   

  	
  D 6584

  
	
  Diglycerides(2):

  	
   

  	
  < 0.200

  	
   

  	
  % Mass

  	
   

  	
  D 6584

  
	
  Triglycerides(3):

  	
   

  	
  < 0.150

  	
   

  	
  % Mass

  	
   

  	
  D 6584

  
	
  Water &
  Sediment:

  	
   

  	
  < 0.020

  	
   

  	
  %
  Volume

  	
   

  	
  D 2709

  
	
  Acid
  Number:

  	
   

  	
  < 0.40

  	
   

  	
  mg
  KOH/g

  	
   

  	
  D 664

  
	
  Visual
  Inspection:

  	
   

  	
  1, max

  	
   

  	
  Haze

  	
   

  	
  D 4176,
  procedure 2

  
	
  Relative
  Density at 60°F:

  	
   

  	
  0.85 - 0.90

  	
   

  	
  n/a

  	
   

  	
  D1298 (BQ-9000)

  
	
  Oxidation
  Stability (100°C)

  	
   

  	
  3 min
  or per Shipping Request

  	
   

  	
  hrs

  	
   

  	
  EN 14112

  
	
  Flash
  point (closed cup):

  	
   

  	
  > 93

  	
   

  	
  °C

  	
   

  	
  D 93

  
	
  Alcohol
  Control

  	
  Option
  1:  Methanol

  Option 2:  Flashpoint

  	
   

  	
  < 0.2

  > 130

  	
   

  	
  %
  Volume

  °C

  	
   

  	
  EN 14110

  D 93

  
	
  Moisture(4):

  	
   

  	
  < 0.020

  	
   

  	
  %
  Volume

  	
   

  	
  E203

  
	
  Cold
  Soak Filtration:

  	
   

  	
  < 200

  	
   

  	
  seconds

  	
   

  	
  D 6751 Annex

  
	
  Sulfur:

  	
   

  	
  < 10

  	
   

  	
  ppm

  	
   

  	
  D 2622

  
	
  Sodium &
  Potassium Combined:

  	
   

  	
  < 2.0

  	
   

  	
  ppm
  (μg/g)

  	
   

  	
  EN 14538

  
	
  Calcium &
  Magnesium Combined:

  	
   

  	
  < 1.0

  	
   

  	
  ppm
  (μg/g)

  	
   

  	
  EN 14538

  
	
  Phosphorus:

  	
   

  	
  < 0.001

  	
   

  	
  % Mass

  	
   

  	
  D 4951

  
	
  Carbon
  Residue:

  	
   

  	
  < 0.05

  	
   

  	
  % Mass

  	
   

  	
  D 4530

  
	
  Sulfated
  Ash:

  	
   

  	
  < 0.02

  	
   

  	
  % Mass

  	
   

  	
  D 874

  
	
  Kinematic
  Viscosity at 40°C:

  	
   

  	
  3.8 - 5.0

  	
   

  	
  mm2/sec.

  	
   

  	
  D 445

  
	
  Copper
  Corrosion (3 hrs at 50°C):

  	
   

  	
  No. 1

  	
   

  	
  n/a

  	
   

  	
  D 130

  
	
  Distillation
  at 90% Recovered:

  	
   

  	
  360, max

  	
   

  	
  °C

  	
   

  	
  D 1160

  
	
  Cetane
  number:

  	
   

  	
  47, min

  	
   

  	
  n/a

  	
   

  	
  D 613

  
								

 

	
  (1),(2),(3),(4),(5) 
  These are not ASTM D 6751 nor BQ9000 specification requirements

  

 

 

 

Attachment C-2

 

REG-9000Ô EN

 

Based
off EN 14214 Specifications

 

	
  Test Parameter

  	
   

  	
  REG-9000Ô
  Limit

  	
   

  	
  Units

  	
   

  	
  Method

  
	
  Free
  Glycerin:

  	
   

  	
  0.014

  	
   

  	
  % (m/m)

  	
   

  	
  EN 14105

  
	
  Total
  Glycerin:

  	
   

  	
  0.150

  	
   

  	
  % (m/m)

  	
   

  	
  EN 14105

  
	
  Monoglycerides:

  	
   

  	
  0.500

  	
   

  	
  % (m/m)

  	
   

  	
  EN 14105

  
	
  Diglycerides:

  	
   

  	
  0.200

  	
   

  	
  % (m/m)

  	
   

  	
  EN 14105

  
	
  Triglycerides:

  	
   

  	
  0.150

  	
   

  	
  % (m/m)

  	
   

  	
  EN 14105

  
	
  Ester
  Content:

  	
   

  	
  > 96.5

  	
   

  	
  % (m/m)

  	
   

  	
  EN 14103

  
	
  Linolenic
  Acid Methyl Ester:

  	
   

  	
  12, max

  	
   

  	
  % (m/m)

  	
   

  	
  EN 14103

  
	
  Polyunsaturate
  Methyl Ester:

  	
   

  	
  1, max

  	
   

  	
  % (m/m)

  	
   

  	
  EN 14103

  
	
  Total
  Contamination:

  	
   

  	
  24, max

  	
   

  	
  mg/kg

  	
   

  	
  EN 12662

  
	
  Acid
  Number:

  	
   

  	
  < 0.40

  	
   

  	
  mg
  KOH/g

  	
   

  	
  EN 14104

  
	
  Cold
  Filter Plugging Point:

  	
   

  	
  Per
  Order

  	
   

  	
  °C

  	
   

  	
  EN 116 Allowable
  variance of +/- 2°C

  
	
  Density
  @15°C:

  	
   

  	
  860 - 900

  	
   

  	
  kg/m3

  	
   

  	
  EN ISO 3675

  
	
  Oxidative
  Stability:

  	
   

  	
  6 min
  or per Shipping Request

  	
   

  	
  hrs

  	
   

  	
  EN 14112:2003

  
	
  Flashpoint:

  	
   

  	
  > 170

  	
   

  	
  °C

  	
   

  	
  EN ISO 3679

  
	
  Iodine
  Value:

  	
   

  	
  120 Max

  	
   

  	
  g/100g

  	
   

  	
  EN 14111

  
	
  Methanol
  Content:

  	
   

  	
  0.2, max

  	
   

  	
  % (m/m)

  	
   

  	
  EN 14110

  
	
  Water
  Content:

  	
   

  	
  200, max

  	
   

  	
  mg/kg

  	
   

  	
  EN ISO 12937

  
	
  Sulfur
  Content:

  	
   

  	
  < 10

  	
   

  	
  mg/kg

  	
   

  	
  EN ISO 20846

  
	
  Phosphorus
  Content:

  	
   

  	
  < 10

  	
   

  	
  mg/kg

  	
   

  	
  EN 14107

  
	
  Sodium &
  Potassium Combined:

  	
   

  	
  < 2

  	
   

  	
  mg/kg

  	
   

  	
  EN 14538
  BS2000-547

  
	
  Calcium &
  Magnesium Combined:

  	
   

  	
  < 2.0

  	
   

  	
  mg/kg

  	
   

  	
  EN 14538
  BS2000-547

  
	
  Sulfated
  Ash:

  	
   

  	
  < 0.02

  	
   

  	
  % (m/m)

  	
   

  	
  ISO 3987

  
	
  Kinematic
  Viscosity at 40°C:

  	
   

  	
  3.5 - 5.0

  	
   

  	
  mm2/sec.

  	
   

  	
  EN ISO 3104

  
	
  Copper
  Corrosion @ 50°C for 3hrs:

  	
   

  	
  1, max

  	
   

  	
  n/a

  	
   

  	
  EN ISO 2160

  
	
  Cetane
  Number:

  	
   

  	
  51 Min.

  	
   

  	
  n/a

  	
   

  	
  EN ISO 5165

  
	
  Carbon
  Residue @ 10% distillation remnant:

  	
   

  	
  0.3

  	
   

  	
  %(m/m)

  	
   

  	
  EN ISO 10370

  
	
  Cold
  Soak Filtration:

  	
   

  	
  < 200

  	
   

  	
  seconds

  	
   

  	
  D 6217 Annex

  

 

 

 

Exhibit D

Shipping/Loadout Request

 

	
  Today’s Date:

  	
  /

  	
  /

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Target Date to Load:

  	
  /

  	
  /

  	
   

  

 

Loading Requirements

 

	
  o

  	
  Truck

  	
  Trucking Company

  
	
   

  	
   

  	
   

  
	
  o

  	
  REG Railcar

  	
   

  
	
   

  	
   

  	
   

  
	
  Product:

  	
   

  
	
   

  	
   

  
	
  o

  	
  B99.9

  	
   

  
	
   

  	
   

  	
   

  
	
  o

  	
  B100

  	
   

  
	
   

  	
   

  	
   

  
	
  o

  	
  Oxidative Additive:                  ppm

  
	
   

  	
   

  
	
  o

  	
  Minimum Load
  Temperature:                      °F

  
	
   

  	
   

  

Blackhawk Fills out
Remainder of form:

 

	
  Lot Number:

  	
   

  	
   

  

 

	
  o
  Loadout Checklist Complete. Operator initials

  	
   

  	
   

  

 

	
  Seal Numbers:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Railcar ID:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  RIN #’s

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

	
  Time Scheduled

  	
   

  	
   

  	
  *Biodiesel Loaded (gal)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Time Arrived

  	
   

  	
   

  	
  *Diesel Loaded (gal)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Time Loaded

  	
   

  	
   

  	
  *Total Gallons        (gal)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BOL #

  	
   

  	
   

  	
   

  	
   

  

 

*Gal corrected to 60 degrees Fahrenheit.

 

When completed Scan and e-mail to:  bill.neese@regfuel.com, adam.sander@regfuel.com,
mike.alleman@regfuel.com, dave.simon@regfuel.com, natan.wylke@com,
Jason.schwenneker@regfuel.com.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]