Document:

Exhibit 10.4

	
 

	

	
 

	
Agreement of Lease

	
 

	
between

	
 

	
Empire State Building Company L.L.C., as Landlord

	
 

	
and

	
 

	
Coty Inc., as Tenant

	
 

	
dated as of July 14, 2008

	
 

	
for

	
 

	
the entire 14th Floor and a portion of the 15th Floor

	
 

	
at the Empire State Building

	
350 Fifth Avenue

	
New York, New York

	
 

	
and ancillary agreements

	
 

	

	
 

	
Loeb & Loeb LLP

	
345 Park Avenue

	
New York, New York 10154

	
(212) 407-4000

Table of Contents

	
 

	
 

	
 

	
1.

	
Lease Digest

	
 

	
 

	
 

	
 

	
2.

	
Agreement of
Lease dated as of July 14, 2008 between Empire State Building Company L.L.C.
(“Landlord”), as landlord, and Coty Inc. (“Tenant”), as tenant

	
 

	
 

	
 

	
 

	
3.

	
Escrow
Letter dated July 14, 2008 among Landlord, as landlord, Tenant, as tenant,
and David J. Bleckner, P.C., as escrowee

	
 

	
 

	
 

	
 

	
 

	
- including
a copy of the check for the Escrow Deposit

	
 

	
 

	
 

	
 

	
4.

	
Non-Disturbance
and Attornment Agreement dated as of July 14, 2008 between Empire State Land
Associates L.L.C., as fee owner, and Tenant, as subtenant, recorded in the
Office of the City Register of the City of New York (the “City Register’s
Office”) on July 23, 2008 as CRFN 2008000293470

	
 

	
 

	
 

	
 

	
5.

	
Subordination,
Non-Disturbance and Attornment Agreement dated as of July 14, 2008 between
Empire State Building Associates L.L.C., as master lessee, and Tenant, as
subtenant, recorded in the City Register’s Office on July 23, 2008 as CRFN
2008000293471

	
 

	
 

	
 

	
 

	
6.

	
Subordination,
Non-Disturbance and Attornment Agreement dated as of July 14, 2008 between
Capital One, N.A., as mortgagee, and Tenant, as tenant, recorded in the City
Register’s Office on July 23, 2008 as CRFN 2008000293472

	
 

AGREEMENT OF LEASE DATED AS OF JULY 14, 2008
BETWEEN
EMPIRE STATE BUILDING COMPANY L.L.C., AS LANDLORD, AND
COTY INC., AS
TENANT,
FOR THE ENTIRE 14TH FLOOR, AND A PORTION OF THE 15TH FLOOR,
AT THE EMPIRE
STATE BUILDING,
350 FIFTH AVENUE, NEW YORK, NEW YORK

LEASE DIGEST

Loeb & Loeb LLP
345 Park Avenue
New York, New York 10154
(212) 407-4000

August 28, 2008

LEASE DIGEST

TABLE OF CONTENTS

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Page

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
1.

	
Landlord

	
 

	
1

	
 

	
 

	
 

	
 

	
2.

	
Tenant

	
 

	
1

	
 

	
 

	
 

	
 

	
3.

	
Building

	
 

	
1

	
 

	
 

	
 

	
 

	
4.

	
Date of Lease

	
 

	
1

	
 

	
 

	
 

	
 

	
5.

	
Premises

	
 

	
1

	
 

	
 

	
 

	
 

	
6.

	
Term

	
 

	
1

	
 

	
 

	
 

	
 

	
7.

	
Commencement Date

	
 

	
1

	
 

	
 

	
 

	
 

	
8.

	
Expiration Date

	
 

	
1

	
 

	
 

	
 

	
 

	
9.

	
Rent Commencement Date

	
 

	
1

	
 

	
 

	
 

	
 

	
10.

	
First Outside Date

	
 

	
2

	
 

	
 

	
 

	
 

	
11.

	
Self Help Outside Date

	
 

	
2

	
 

	
 

	
 

	
 

	
12.

	
Termination Outside Date

	
 

	
2

	
 

	
 

	
 

	
 

	
13.

	
Fixed Rent

	
 

	
3

	
 

	
 

	
 

	
 

	
14.

	
Electric Service

	
 

	
3

	
 

	
 

	
 

	
 

	
15.

	
Use

	
 

	
3

	
 

	
 

	
 

	
 

	
16.

	
Tenant’s Share

	
 

	
3

	
 

	
 

	
 

	
 

	
17.

	
Operating Expenses

	
 

	
3

	
 

	
 

	
 

	
 

	
18.

	
Escalation Statements

	
 

	
3

	
 

	
 

	
 

	
 

	
19.

	
Payment of Operating
Expenses

	
 

	
4

	
 

	
 

	
 

	
 

	
20.

	
Extension of Payment of
Operating Expenses

	
 

	
4

	
 

	
 

	
 

	
 

	
21.

	
Operating Expenses Audit
Rights; Disputes

	
 

	
4

	
 

	
 

	
 

	
 

	
22.

	
Failure to Bill Operating
Expenses; Waiver of Expense Escalation

	
 

	
5

i

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TABLE OF CONTENTS

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Page

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
23.

	
Real Estate Taxes

	
 

	
6

	
 

	
 

	
 

	
 

	
24.

	
Payment of Real Estate Taxes

	
 

	
6

	
 

	
 

	
 

	
 

	
25.

	
Extension of Payment of
Real Estate Taxes

	
 

	
6

	
 

	
 

	
 

	
 

	
26.

	
Real Estate Taxes Disputes

	
 

	
6

	
 

	
 

	
 

	
 

	
27.

	
Failure to Bill Real
Estate Tax Escalation; Waiver of Tax Escalation

	
 

	
6

	
 

	
 

	
 

	
 

	
28.

	
ICIP/Building Improvement
Program

	
 

	
7

	
 

	
 

	
 

	
 

	
29.

	
ICIP/Building Improvement
Program Disputes

	
 

	
7

	
 

	
 

	
 

	
 

	
30.

	
Bid Charge

	
 

	
7

	
 

	
 

	
 

	
 

	
31.

	
Broker

	
 

	
7

	
 

	
 

	
 

	
 

	
32.

	
Late Charge

	
 

	
8

	
 

	
 

	
 

	
 

	
33.

	
Landlord’s Notice Address

	
 

	
8

	
 

	
 

	
 

	
 

	
34.

	
Landlord’s Contribution

	
 

	
8

	
 

	
 

	
 

	
 

	
35.

	
Landlord’s Contribution Disputes

	
 

	
9

	
 

	
 

	
 

	
 

	
36.

	
Landlord’s Contribution Escrow Agreement

	
 

	
9

	
 

	
 

	
 

	
 

	
37.

	
Assignment/Subletting

	
 

	
10

	
 

	
 

	
 

	
 

	
38.

	
Recapture

	
 

	
10

	
 

	
 

	
 

	
 

	
39.

	
Profit Splitting

	
 

	
11

	
 

	
 

	
 

	
 

	
40.

	
Affiliate Exception

	
 

	
12

	
 

	
 

	
 

	
 

	
41.

	
Successor Entity Exception

	
 

	
12

	
 

	
 

	
 

	
 

	
42.

	
Exception for Subleasing an Aggregate of 15,000 RSF

	
 

	
13

	
 

	
 

	
 

	
 

	
43.

	
Desk Space Exception

	
 

	
13

	
 

	
 

	
 

	
 

	
44.

	
Charitable Organization
Exception

	
 

	
13

ii

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TABLE OF CONTENTS

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Page

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
45.

	
Alterations

	
 

	
14

	
 

	
 

	
 

	
 

	
46.

	
Restoration

	
 

	
14

	
 

	
 

	
 

	
 

	
47.

	
Landlord’s Review of Tenant Plans

	
 

	
15

	
 

	
 

	
 

	
 

	
48.

	
SNDA

	
 

	
15

	
 

	
 

	
 

	
 

	
49.

	
Landlord’s Failure to
Repair/Provide Services

	
 

	
15

	
 

	
 

	
 

	
 

	
50.

	
Rent Abatement for Failure
of Services

	
 

	
16

	
 

	
 

	
 

	
 

	
51.

	
Insurance

	
 

	
17

	
 

	
 

	
 

	
 

	
52.

	
Signage

	
 

	
17

	
 

	
 

	
 

	
 

	
53.

	
Defaults

	
 

	
18

	
 

	
 

	
 

	
 

	
54.

	
Renewal Option

	
 

	
18

	
 

	
 

	
 

	
 

	
55.

	
Determination of Fair
Market Rental Rate

	
 

	
18

	
 

	
 

	
 

	
 

	
56.

	
Occupancy Condition to
Renewal Option

	
 

	
19

	
 

	
 

	
 

	
 

	
57.

	
Expansion Option

	
 

	
19

	
 

	
 

	
 

	
 

	
58.

	
Right of First Offer

	
 

	
22

	
 

	
 

	
 

	
 

	
59.

	
Delays in Possession of
Option or ROFO Space

	
 

	
24

	
 

	
 

	
 

	
 

	
60.

	
Initial Leasing of Vacant
Space by Landlord

	
 

	
25

	
 

	
 

	
 

	
 

	
61.

	
Occupancy Condition to
Expansion and ROFO Rights

	
 

	
25

iii

LEASE DIGEST1

	
 

	
 

	
LANDLORD:

	
EMPIRE STATE BUILDING COMPANY L.L.C., a New
York limited liability company 

	
 

	
 

	
TENANT:

	
COTY INC., a Delaware corporation

	
 

	
 

	
BUILDING:

	
Empire State Building, 350 Fifth Avenue,
New York, New York 10118

	
 

	
 

	
DATE OF
LEASE:

	
July 14, 2008

	
 

	
 

	
PREMISES:

(Preamble)

	
The entire rentable area of the 14th floor
of the Building, consisting of 51,527 rentable square feet (“RSF”),
and a portion of the 15th floor of the Building, consisting of 36,329 RSF.
The total RSF of the Premises is 87,856.

	
 

	
 

	
TERM:

(Preamble)

	
Approximately fifteen (15) years.

	
 

	
 

	
COMMENCEMENT
DATE:

(Article 1A)

	
The 31st day after the date when the last
of the following has occurred: (i) Landlord delivers vacant possession of the
Premises to Tenant and (ii) Landlord substantially completes Landlord’s Work
(as defined in Article 23B).2 

	
 

	
 

	
EXPIRATION DATE:

(Preamble and Article 1E)

	
The last day of the 15th Lease Year. The
term “Lease Year” means the twelve (12) months commencing on the Rent
Commencement Date (as hereinafter defined) (or if the Rent Commencement Date
is not the first day of a month, the first day of the month following the
month in which occurs the Rent Commencement Date) and each subsequent period
of twelve (12) months.

	
 

	
 

	
RENT:

	
The date which is ten (10) months after the
Commencement

	
 

	
 

	

	
1

	
This digest is a general summary of Tenant’s rights and
obligations under the referenced provisions of the Lease. If any questions or
issues arise thereunder, the actual provisions of the Lease should be analyzed
and consulted. Article references are to the Lease.

	
2

	
Pursuant to Article 1A, the Commencement Date is also
contingent upon Landlord delivering certain non-disturbance agreements to
Tenant from each of (i) Landlord’s lender (i.e., Capital One, N.A.), (ii) the
ground lessee of the Building (i.e., Empire State Building Associates L.L.C.)
and (iii) the fee owner of the Building (i.e., Empire State Land Associates
L.L.C.). Landlord delivered such non-disturbance agreements to Tenant at the
mutual execution and delivery of the Lease and related documents, which was
held at Tenant’s Two Park Avenue offices on July 14, 2008. The non-disturbance
agreements were recorded in the Office of the City Register of the City of New
York on July 23, 2008.

1

	
 

	
 

	
COMMENCEMENT
DATE:

(Article 2A)

	
Date.

	
 

	
 

	
FIRST OUTSIDE DATE:

(Article 1F(i))

	
If Landlord fails to substantially complete
Landlord’s Work on or before November 14, 2008,3 then Tenant shall
be entitled to a rent credit against fixed annual rent (without electricity)
in the amount of $12,516.47 per day for each day after November 14, 2008 that
Landlord fails to substantially complete Landlord’s Work. 

	
 

	
 

	
SELF HELP OUTSIDE
DATE:

(Article 1F(ii))

	
If Landlord fails to substantially complete
Landlord’s Work on or before December 14, 2008, then Tenant may, at any time
on or before February 12, 2009, give Landlord written notice that, unless
Landlord substantially completes Landlord’s Work within ten (10) days after
such notice has been given to Landlord, Tenant shall perform the work necessary
to complete Landlord’s Work. Such notice shall specify (in bold face type and
capital letters) that in the event Landlord does not substantially complete
Landlord’s Work within such ten (10) day period, then Tenant shall exercise
its “self-help” rights under subparagraph (ii) of Article 1F with respect to
Landlord’s Work. Landlord shall reimburse Tenant for the commercially
reasonable out-of-pocket costs incurred by Tenant in performing such work
pursuant to Article 1F(ii). If Tenant exercises such self-help rights, then
(i) the rent credit described above in the “First Outside Date” section of
this digest will only continue until the earlier to occur of (x) the date
that Tenant substantially completes Landlord’s Work or (y) the date (as same
may be extended as a result of force majeure) on which Tenant should have
completed Landlord’s Work using commercially reasonable efforts to do so, and
(ii) Tenant shall no longer have the right to cancel the Lease as described
below in the “Termination Outside Date” section of this digest.

	
 

	
 

	
TERMINATION
OUTSIDE DATE:

(Article 1F(iii))

	
If Landlord fails to substantially complete
Landlord’s Work on or before January 14, 2009 (and provided Tenant has not
exercised its self-help rights described above in the “Self Help Outside
Date” section of this digest), then Tenant may terminate the Lease on ten
(10) days’ prior written notice to Landlord given at any time on or before
March 15, 2009, and unless Landlord substantially completes Landlord’s Work
within ten 

	
 

	
 

	

	
3

	
Specific dates have been used in this digest in lieu of
defined terms (e.g., Effective Date, First Outside Date, Self Help Outside Date or 60 days after the Self Help Outside
Date), to the extent same were known at the time this digest was prepared.

2

	
 

	
 

	
 

	
 

	
(10) days after such notice has been received by Landlord, the term
of the Lease shall end as if January 14, 2009 was the date originally set in
the Lease for the expiration of the term (except that Landlord shall
reimburse Tenant for the reasonable out-of-pocket costs to Tenant of
all plans and specifications prepared for Tenant in connection with the Lease
and the Premises, up to $351,424.00, pursuant to Article 1F(iii)).

	
 

	
 

	
 

	
FIXED RENT:

(Article 2A)

	
(a)

	
From the Rent Commencement Date through the last day of the fifth
Lease Year: $4,568,512.00 per annum ($380,709.33 per month);

	
 

	
 

	

(b)

	

From the first day of the sixth Lease Year though the last day of the
tenth Lease Year: $4,919,936.00 per annum ($409,994.67 per month); and

	
 

	
 

	
 

	
 

	
(c)

	
From the first day of the eleventh Lease Year though the last day of
the fifteenth Lease Year: $5,271,360.00 per annum ($439,280.00 per month).

	
 

	
 

	
ELECTRIC
SERVICE:

(Article 3)

	
Furnished on a submetering basis at Landlord’s Cost (as defined in
Article 3A(i)), plus 6%.

	
 

	
 

	
USE:

(Article 1G)

	
Offices relating to the conduct of Tenant’s, or any permitted
occupant’s, business and uses incidental and related thereto.

	
 

	
 

	
TENANT’S SHARE:

	
3.2293%

	
 

	
 

	
(Article
2B(i)(b), with

respect to operating

expenses escalations, and

Article 2C(i)(b), with

respect to tax escalations)

	
 

	
 

	
 

	
OPERATING
EXPENSES:

(Article 2B)

	
Tenant pays, as additional rent, Tenant’s Share of any increases in
Expenses (as defined in Article 2B(i)(e)) each comparative year over the
base calendar year 2009.

	
 

	
 

	
ESCALATION
STATEMENTS:

(Articles 2B(i)(f) and
2B(iv))

	
The Escalation Statements (as defined in Article 2B(i)(f)) setting
forth the amount of Expenses payable by Tenant for a specified comparative
year shall be (i) in writing, (ii) signed by Landlord, (iii) substantially in
the form attached to the Lease as Exhibit F and (iv) prepared based on
information and computations made in accordance with GAAP by a certified
public accountant.

3

	
 

	
 

	
PAYMENT OF
OPERATING
EXPENSES:

	
The first payment of additional rent for
the entire first comparative year shall be payable within thirty (30) days
after the Escalation Statement relating thereto is delivered to Tenant.

	
 

	
 

	
(Article
2B(ii))

	
Beginning on the first day of the first
comparative year and thereafter, all monthly installments of rent shall
include one-twelfth (1/12th) of the then current annual amount of such
adjustment for Expenses on account of Expenses for the next ensuing
comparative year (and such amount shall be payable by Tenant until Landlord
delivers the next Escalation Statement to Tenant).

	
 

	
 

	
 

	
Within thirty (30) days after Landlord
delivers the next Escalation Statement to Tenant, Tenant shall pay to
Landlord on account of additional rent for the comparative year to which such
Escalation Statement relates, an amount equal to the excess of additional
rent due on account of increases in Expenses over the amount collected from
Tenant on account thereof during the preceding year. If there shall have been
a reduction in the Expenses during any ensuing comparative year, the excess
of the amount collected by Landlord over the amount paid by Tenant on account
of such comparative year shall be credited against amounts payable by Tenant
for the current comparative year (or if the term of the Lease shall have expired,
refunded to Tenant).

	
 

	
 

	
 

	
If any Escalation Statement is furnished to
Tenant after the commencement of the applicable comparative year, there also
shall, within thirty (30) days, be paid by Tenant to Landlord an amount equal
to the portion of such monthly adjustments allocable to the part of such
comparative year which shall have lapsed prior to the first day of the
calendar month next succeeding the calendar month in which such Escalation
Statement is furnished to Tenant.

	
 

	
 

	
EXTENSION OF
PAYMENT OF
OPERATING
EXPENSES:

(Article 2B(ii))

	
If Landlord fails to substantially complete
Landlord’s Work on or before November 14, 2008, then Tenant’s obligation to
begin paying operating expenses escalation additional rent shall be extended
beyond the first day of the first comparative year by one day for each day
after November 14, 2008 that Landlord fails to substantially complete
Landlord’s Work.

	
 

	
 

	
OPERATING EXPENSES
AUDIT RIGHTS;
DISPUTES:

(Article 2B(iv) and
(v))

	
All Escalation Statements delivered by
Landlord to Tenant shall constitute a final determination of the applicable
Expenses, unless (i) within two hundred seventy (270) days after they are
furnished (time being of the essence), Tenant gives a notice (“Audit Notice”)
to Landlord that Tenant wishes to examine

4

	
 

	
 

	
 

	
Landlord’s books and records with respect
thereto and (ii) within sixty (60) days after the completion of any such
examination (time being of the essence), Tenant gives a notice to Landlord
that it disputes the accuracy or appropriateness of the statement which is
the subject of such examination (which notice shall specify the particular
respects in which such statement is inaccurate or inappropriate).

	
 

	
 

	
 

	
Tenant may audit and dispute the base year
at the same time it disputes or audits the first comparative year.4 

	
 

	
 

	
 

	
Pending the resolution of any such audit
and dispute, Tenant shall pay the additional rent to Landlord in accordance
with the statements furnished by Landlord (without prejudice as to any such
dispute).

	
 

	
 

	
 

	
After payment of such additional rent,
Tenant may examine Landlord’s relevant books and records during regular
business hours, provided such examination is commenced within forty-five
(45) days after the giving of an Audit Notice.

	
 

	
 

	
 

	
If it is determined that the Expenses
reported by Landlord are in excess of one hundred five (105%) percent of the
actual amount of Expenses, then if (i) Landlord fails to dispute such
finding, (ii) Landlord agrees with such finding, (iii) following a dispute of
Tenant’s examination by Landlord the reconciled audits still evidence that
Tenant was overcharged by more than five percent (5%) or (iv) in arbitration
it is determined that Tenant was overcharged by more than five percent (5%),
then Tenant’s reasonable and actual costs of said audit shall be payable by
Landlord within thirty (30) days of demand.

	
 

	
 

	
 

	
Any dispute shall be resolved by
arbitration in accordance with Article 41. All audit and dispute rights of
Tenant shall survive the expiration or earlier termination of the term of the
Lease for a period of two hundred seventy (270) days after the date Tenant
receives the Escalation Statement for the last comparative year (or partial
comparative year) during the term of the Lease.

	
 

	
 

	
FAILURE TO BILL
OPERATING
EXPENSES; WAIVER OF
EXPENSE
ESCALATION:

	
If Landlord fails to bill Tenant for any
Expense escalation for a period of more than eighteen (18) months after the
comparative year in question, such failure shall constitute a waiver of such
Expense escalation, but shall not constitute a waiver of Tenant’s continuing
obligation to pay any other Expense escalation under 

	
 

	
 

	

	
4

	
We strongly recommend that Tenant exercise its audit
rights, particularly with respect to the base year and the first comparative
year.

5

	
 

	
 

	
(ARTICLE
2B(vii))

	
the Lease.

	
 

	
 

	
REAL ESTATE TAXES:

(Article 2C)

	
Tenant pays, as additional rent, Tenant’s
Share of any increases in “real estate taxes” (as defined in Article
2C(i)(e)) each comparative year over the New York City real estate base tax
year commencing July 1, 2008 and ending June 30, 2009.

	
 

	
 

	
PAYMENT OF REAL
ESTATE TAXES:

(Article 2C(ii)(a))

	
Before or after the start of each
comparative year, Landlord shall furnish to Tenant a statement of the real
estate taxes payable for such comparative year, and a statement of the real
estate taxes payable during the base tax year (together with copies of the
relevant tax bills for such comparative year and base tax year). After
Landlord has furnished Tenant with such statement, Tenant shall pay Landlord,
together with the monthly installments of fixed annual rent due on June 1 and
December 1 of each comparative year, an amount equal to one-half (1/2) of the
total sum of the tax escalation additional rent due from Tenant to Landlord
pursuant to such statement for the applicable comparative year. If a
statement is furnished to Tenant after the commencement of the comparative
year in respect of which such statement is rendered, then Tenant shall,
within thirty (30) days thereafter, pay to Landlord an amount equal to those
installments payable during the period prior to the first day of the month
next succeeding the month in which the applicable statement has been
furnished.

	
 

	
 

	
EXTENSION OF
PAYMENT OF
REAL ESTATE TAXES:

(Article 2C(ii)(a))

	
If Landlord fails to substantially complete
Landlord’s Work on or before November 14, 2008, then Tenant’s obligation to
begin paying real estate tax escalation additional rent shall be extended
beyond the first day of the first comparative year by one day for each day
after November 14, 2008 that Landlord fails to substantially complete
Landlord’s Work.

	
 

	
 

	
REAL ESTATE TAXES
DISPUTES:

(Article 2C(ii)(d))

	
The statement of the real estate taxes to
be furnished by Landlord shall be certified by Landlord and shall constitute
a final determination of the real estate taxes for the periods represented
thereby, unless Tenant within one hundred twenty (120) days after they are
furnished shall give a written notice to Landlord that it disputes their
accuracy or their appropriateness, which notice shall specify the particular
respects in which the statement is inaccurate or inappropriate. If Tenant
disputes said statement then, pending the resolution of such dispute, Tenant
shall pay the additional rent to Landlord in accordance with the statement
furnished by Landlord.

	
 

	
 

	
FAILURE TO
BILL:

	
Any delay or failure of Landlord in billing
any tax escalation for 

6

	
 

	
 

	
REAL ESTATE TAX
ESCALATION; WAIVER
OF TAX ESCALATION:

(ARTICLE
2C(ii)(e))

	
a period of more than eighteen (18) months
after the underlying real estate taxes are due and have been billed by the
applicable taxing authority shall constitute a waiver of such tax escalation,
but shall not constitute a waiver of Tenant’s continuing obligation to pay
any other tax escalation due under the Lease.

	
 

	
 

	
ICIP/BUILDING
IMPROVEMENT
PROGRAM:

(Article 2C(ii)(f))

	
Landlord has applied for benefits under the
New York City Industrial Commercial Incentive Program (“ICIP”) in connection
with the Building Improvement Program (as defined in Article 23D). If an
abatement in real estate taxes has been granted for the building project for
the base tax year by exempting from taxation any portion of a physical
assessment pursuant to the ICIP, then when, as and if the abatement is
reduced, the amount of real estate taxes that would have been paid (at the
tax rate in effect for the base tax year) during the base tax year on that
portion of the physical assessment then no longer subject to the ICIP
abatement shall be added to the real estate taxes payable in the base tax
year. If an ICIP abatement is not granted with respect to the base tax year,
then that portion of the real estate taxes payable for the building project
for the base tax year and any comparative year due solely by reason of the
Building Improvement Program shall be excluded from the real estate taxes for
such years when calculating the real estate tax escalation additional rent
payable hereunder.

	
 

	
 

	
ICIP/BUILDING
IMPROVEMENT
PROGRAM DISPUTES:

(Article 2C(ii)(f))

	
Any dispute regarding the ICIP provisions
described above in the “ICIP/Building Improvement Program” section of this
digest shall be resolved by arbitration in accordance with the provisions of
Article 41 (provided that the standard to be applied in such arbitration is
the correct application of New York law with respect to such matter). Pending
the resolution of such dispute, Tenant shall pay Landlord real estate tax
escalation additional rent in accordance with Landlord’s determination of the
amounts due, but without prejudice to Tenant’s position in such dispute. If,
upon resolution of such dispute, it is determined that Tenant overpaid the
amount of any real estate tax escalation additional rent actually due under
the Lease, then the amount of such overpayment shall be promptly refunded to
Tenant with interest thereon at the Applicable Rate (as defined in Article 7)
from the date of such overpayment.

	
 

	
 

	
BID CHARGE:

(Article 2C(i)(e))

	
Included in real estate taxes.

	
 

	
 

	
BROKER:

	
CB Richard Ellis, Inc. and Colliers ABR,
Inc.

7

	
 

	
 

	
(ARTICLE 40)

	
 

	
 

	
 

	
LATE CHARGE:

(Article 44)

	
If Tenant fails to pay all or any part of
any rental for more than five (5) days after the same has become due and
payable, and Landlord thereafter notifies Tenant of such failure, then Tenant
shall pay Landlord, within five (5) days after demand, a late charge of (i)
three ($.03) cents for each dollar of the amount of such rental which shall
not have been paid to Landlord within such five (5) days after becoming due
and payable or (ii) interest on such sum from the date when first due at the
average of all prime rates published from time to time in The Wall
Street Journal (Eastern Edition) plus three percent (3%),
whichever is greater; provided, however, that Landlord shall not be
required to so notify Tenant more than twice in any twelve (12) month period
during the term of the Lease (so that after such second notice such late
charge will be due with respect to any subsequent payment by Tenant which is
more than five (5) days late, during such Lease Year, without any further
notice from Landlord).

	
 

	
 

	
LANDLORD’S NOTICE
ADDRESS:

(Article 28)

	
Empire State Building Company L.L.C.
350 Fifth Avenue, Third Floor
New York, New York
10118
Attention: General Manager

	
 

	
 

	
 

	
With a copy to:

	
 

	
 

	
 

	
Wien & Malkin LLC

	
 

	
250 West 57th Street

	
 

	
New York, New York 10165

	
 

	
Attention: Senior Asset Supervisor

	
 

	
 

	
LANDLORD’S
CONTRIBUTION:

(Article 23C(iii))

	
Landlord shall provide Tenant an allowance
of up to $5,998,300.00 (“Landlord’s Contribution”) to defray the cost of
construction of any Tenant’s Initial Installation Work (as defined in Article
23C(i)) which is performed prior to the second anniversary of the
Commencement Date. Landlord’s Contribution shall be payable against
requisitions accompanied by (i) the certification of Tenant’s architect that
the applicable work has been substantially completed in accordance with plans
and specifications approved by Landlord, (ii) a list specifying the work
performed for which such requisition is being submitted and (iii) partial
conditional waivers of mechanics’ liens for all work for which such
installment of Landlord’s Contribution has been requisitioned, and partial
unconditional waivers of mechanics’ liens for all work for which payments 

8

	
 

	
 

	
 

	
were made by Landlord with respect to
previous requisitions, from each contractor, sub-contractor, vendor and
supplier of labor and material (collectively, “Contractor”) for whom and to
the extent such installment of Landlord’s Contribution is being
requisitioned; provided, however, that Tenant shall not be required to submit
such lien waivers for any Contractor performing work or providing materials
the cost of which shall be less than $10,000.00. Payments on account of
Landlord’s Contribution shall not be payable more frequently than monthly. No
portion of Landlord’s Contribution shall be applied by Tenant against
expenses for furniture, office equipment or other personal property, and not
more than $899,745.00 may be applied by Tenant for architectural and
engineering fees or other soft costs relating to Tenant’s Initial Installation
Work (which payments of Landlord’s Contribution for such architectural and
engineering fees and other soft costs shall be made by Landlord upon Tenant’s
submission of invoices therefor (whether before or after the Commencement
Date) which have been approved for payment by an officer of Tenant).

	
 

	
 

	
LANDLORD’S
CONTRIBUTION
DISPUTES:

(Article 23C(iii))

	
Any dispute regarding Landlord’s
Contribution shall be resolved by expedited arbitration in accordance with
the provisions of Article 41. In the event that any such dispute shall be
resolved in Tenant’s favor so that Landlord shall be obligated to pay Tenant
all or any part of Landlord’s Contribution, but Landlord fails to do so
within fifteen (15) days after such decision is rendered in such arbitration
proceeding, then Tenant shall be entitled to a rent credit (i.e., Tenant may
offset such amount due Tenant against rent) in the amount of the portion of
Landlord’s Contribution which Landlord has failed to pay Tenant (within such
fifteen (15) day period) in accordance with the decision in such arbitration
proceeding, with interest at the Applicable Rate from the date such sums were
to have been reimbursed or paid to Tenant from Landlord’s Contribution until
the date recovered in full by Tenant and with all reasonable legal fees
incurred by Tenant in connection with such dispute (provided Tenant furnishes
Landlord with paid invoices or other reasonably sufficient evidence of such
fees).

	
 

	
 

	
LANDLORD’S
CONTRIBUTION
ESCROW AGREEMENT:

	
As security for the payment to Tenant of
any portion of Landlord’s Contribution remaining unpaid if and when
Landlord’s lender, Capital One, N.A., succeeds to the interest of Landlord
under the Lease, Landlord agreed to deposit the full amount of Landlord’s
Contribution in escrow with Landlord’s counsel to be drawn upon by Tenant, in
the event of such succession, pursuant to the terms of that certain letter
agreement dated July 14, 2008 between Landlord and Tenant.

9

	
 

	
 

	
ASSIGNMENT/
SUBLETTING:

(Article 4A and D)

	
Except as otherwise provided in Article 4,
Tenant shall not assign, mortgage or encumber the Lease, nor sublet, or
suffer or permit the Premises or any part thereof to be used or occupied by
others, without the prior written consent of Landlord in each instance.

	
 

	
 

	
 

	
If Landlord does not exercise its recapture
rights as provided below in the “Recapture” section of this digest, or if
such recapture rights are not applicable, then Landlord will not unreasonably
withhold, condition or delay its consent to Tenant’s request for consent to a
specific assignment or subletting (provided that Tenant is not in default
under the Lease beyond any notice and/or grace period at the time Tenant
requests Landlord’s consent to any such subletting or assignment).5 

	
 

	
 

	
RECAPTURE:

(Article 4B(i) and (ii))

	
All of the Premises.
If Tenant desires to assign the Lease or to sublet all or substantially all
of the Premises, it shall first request, in writing, Landlord’s consent (and
include with such request the information and documents described in Article
4C). Landlord may then, by notice given within thirty (30) days after the
receipt of Tenant’s request for consent, terminate the Lease on the date (the
“Termination Date”) which shall be the later to occur of (i) the effective
date of the proposed transaction, as specified by Tenant, and (ii) the date
which is sixty (60) days following the date Landlord’s termination notice is
given.

	
 

	
 

	
 

	
An Entire Floor for the Balance of the Term.
If Tenant desires to sublet in a single transaction, all or substantially all
of the 14th Floor Portion, all or substantially all of the 15th Floor
Portion, or all or substantially all of all space on any other floor of the
Building which is included in the Premises, for all or substantially all of
the remainder of the term of the Lease, it shall first request, in writing,
Landlord’s consent (and include with such request the information and
documents described in Article 4C). Landlord may then, by notice given within
thirty (30) days after the receipt of Tenant’s request for consent, delete
from the Premises the space proposed to be subleased (the “Deleted Portion”),
on the date which shall be the later to occur of (a) the effective date of
the proposed transaction, as specified by Tenant, and (b) the date which is
sixty (60) days following the date Landlord’s deletion notice is given.

	
 

	
 

	

	
5

	
Please see Articles 4E and 4F for certain restrictions
and conditions applicable to subleasing and assigning (including the
prohibition on any subleasing which results in the occupancy of the Premises by
more than six (6) occupants, including Tenant).

10

	
 

	
 

	
 

	
Condition of Deleted Portion.
Landlord shall accept the Deleted Portion “as is” except that Landlord, at
Landlord’s expense, shall perform all such work and make all such alterations
as may be required (i) to demise the Deleted Portion from the remainder of
the Premises (including, without limitation, separation of building systems
and associated wiring, duct work and piping, and removal of any internal
staircase and closing up of the slab) to permit lawful occupancy and (ii) if
applicable, to make the floor properly and legally usable as a multi-tenanted
floor including, without limitation, any work needed to restore public
corridors and bathrooms (using Building standard fixtures and finishes);
provided, however, if Tenant agreed to perform such work, at its expense,
under the terms of the proposed assignment or sublease, then Landlord shall
do so at Tenant’s reasonable expense, which shall be deemed additional rent
under the Lease and shall be due within thirty (30) days after demand,
accompanied by supporting documentation therefor.

	
 

	
 

	
PROFIT
SPLITTING:

(Article 4J)

	
If Tenant assigns the Lease or subleases
all or any portion of the Premises (except with respect to an assignment or
sublease which does not require Landlord’s consent under paragraphs G
(Affiliates), H (Successor Entity), I (the 15,000 RSF flexible sublet), P
(Desk Space) or Q (Charitable Organizations) of Article 4), Tenant shall pay
to Landlord the following sums: (a) with respect to a sublease, fifty percent
(50%) of (1) any rent or other consideration (including, without limitation,
sums for fixtures, furniture, equipment and other personal property less, in
the case of a sale thereof, the then unamortized value thereof on Tenant’s
federal tax returns) paid to Tenant by any subtenant which (after first
deducting from such rent or other consideration the costs of Tenant, if any,
in effecting the subletting, including reasonable alteration costs,
commissions and legal fees) is in excess of (2) the rent allocable (strictly
on a per square foot basis, without regard to any other allocation of value,
by dividing aggregate consideration by the RSF of the area so sublet) to the
subleased space which is then being paid by Tenant to Landlord pursuant to
the terms hereof and (b) with respect to an assignment of the Lease, fifty
percent (50%) of any other profit or gain (after first deducting from such
profit or gain any necessary expenses incurred) realized by Tenant from any
such assignment. All such sums payable by Tenant shall be payable to Landlord
as additional rent as and when received by Tenant (and shall be payable to
Landlord only after Tenant shall have first deducted and recovered in full
the costs described above and certain unamortized out-of-pocket costs to
Tenant of Tenant’s Initial Installation Work as provided in 

11

	
 

	
 

	
 

	
subparagraph (ii) of Article J).

	
 

	
 

	
AFFILIATE
EXCEPTION:

(Article 4G)

	
The provisions of paragraph B of Article 4
(regarding recapture), and the provisions of paragraph J of Article 4
(regarding profit splitting), shall not apply to, and Landlord’s consent
shall not be required with respect to (i) the use by an Affiliate (as
hereinafter defined) of all or any portion of the Premises or (ii) an assignment
of the Lease or a sublease of all or any portion of the Premises to an
Affiliate, provided that Tenant complies with certain conditions and
provisions of Article 4 as set forth in Article 4G.

	
 

	
 

	
 

	
Tenant shall give Landlord at least ten
(10) days’ prior written notice of any such transaction accompanied by (i) a
certified statement by an officer of Tenant that the proposed assignee or
sublessee, as the case may be, is an Affiliate (and describing the
relationship) and (ii) the written statement by Tenant confirming that Tenant
will remain primarily liable, jointly and severally with any transferee or
assignee, for the obligations of Tenant under the Lease.

	
 

	
 

	
 

	
The term “Affiliate” means any entity,
directly or indirectly, controlled by, controlling or under common control
with Tenant.

	
 

	
 

	
SUCCESSOR
ENTITY

EXCEPTION:

(Article 4H)

	
The provisions of paragraph B of Article 4
(regarding recapture), and the provisions of paragraph J of Article 4
(regarding profit splitting), shall not apply to, and Landlord’s consent
shall not be required, with respect to an assignment of the Lease or a
sublease of all but not part of the Premises to any corporation or other
entity (“Successor Entity”) (i) to which all or substantially all of the
assets of Tenant are transferred or sold or (ii) into which or with which
Tenant may be merged or consolidated, provided that (a) the net worth
(determined in accordance with GAAP or if such entity is a foreign entity,
International Accounting Standards) of such transferee or of the resulting
entity, as the case may be, is equal to or greater than the net worth of
Tenant (determined in accordance with GAAP) immediately prior to such
transfer or transaction and (b) any such transaction complies with certain
conditions and provisions of Article 4 as set forth in Article 4H.

	
 

	
 

	
 

	
Tenant shall give Landlord at least ten
(10) days’ prior written notice of any such transaction, which notice shall
contain or be accompanied by (i) the information and documents described in
paragraph C of Article 4, (ii) reasonably satisfactory proof that the above
described net worth and other applicable provisions of paragraph H of Article
4 have been satisfied and (iii) a written 

12

	
 

	
 

	
 

	
statement by Tenant confirming that Tenant
will (if and to the extent it still exists) remain primarily liable, jointly
and severally with any transferee or assignee, for the obligations of Tenant
under the Lease.

	
 

	
 

	
EXCEPTION
FOR

SUBLEASING AN

AGGREGATE OF 15,000

RSF:

(Article 4I)

	
The provisions of paragraphs B, C, E, J, M
and N of Article 4 shall not apply to, and Landlord’s consent shall not be
required, with respect to one or more sub-lettings, from time to time, of up
to an aggregate of 15,000 RSF of the 15th Floor Portion, provided that (i)
Tenant shall give Landlord fifteen (15) days’ prior written notice of any
such transaction, which notice shall include a copy of the executed sublease
agreement for any such transaction, (ii) the term of any such sublease
agreement shall not expire later than the last day of the tenth Lease Year,
(iii) any such subtenant shall be reputable and financially responsible, (iv)
Tenant shall not be in default under the Lease beyond any applicable notice
and/or grace period at the time Tenant enters into any such sublease and (v)
any such transaction shall comply with certain conditions and provisions of
Article 4 as set forth in Article 41.

	
 

	
 

	
DESK SPACE

EXCEPTION:

(Article 4P)

	
The provisions of paragraph B of Article 4
(regarding recapture), and the provisions of paragraph J of Article 4
(regarding profit splitting), shall not apply to, and Tenant shall have the
right, without the prior consent of Landlord, to enter into license
agreements for the use of desk space (“Desk Space”) within the Premises only
with third party outsourced service providers using such Desk Space to
service Tenant or Affiliates at the Premises (collectively, “Desk Space
User”) (provided that Tenant’s third party auditors may also service
Affiliates not located at the Premises), including, but not limited to, marketing
personnel, auditors, consultants, professional advisors, commercial partners,
accountants, mail room facilities, photocopy facilities, messenger facilities
and other vendors, provided that (i) Tenant shall give Landlord at least ten
(10) days’ prior written notice of any such transaction, (ii) such Desk Space
is not separately demised, and (iii) such licensing agreements are not being
entered into to violate the provisions of the Lease prohibiting assignment
and sub-lettings.

	
 

	
 

	
CHARITABLE

ORGANIZATION

EXCEPTION:

(Article 4Q)

	
The provisions of paragraph B of Article 4
(regarding recapture), and the provisions of paragraph J of Article 4
(regarding profit splitting), shall not apply to, and Tenant shall have the
right, without the prior consent of Landlord, to enter into a license
agreement or sublease for the use of office space, which shall be undivided
and consist of less than 2,000 RSF on each of the 14th Floor Portion and the
15th Floor Portion, with 

13

	
 

	
 

	
 

	
any charitable organization including, without
limitation, D.K.M.S. Americas (other than a charitable organization whose
activities may, in Landlord’s reasonable opinion, pose a threat or security
risk to tenants of the Building), provided that (i) Tenant shall give
Landlord at least ten (10) days’ prior written notice of any such transaction
and (ii) such occupancy shall comply in all respects with all applicable
laws, rules and regulations (including, without limitation, the provisions of
the New York City Building Code).

	
 

	
 

	
ALTERATIONS:

(Article 8)

	
Tenant shall make no alteration, addition
or improvement to the Premises without the prior written approval of
Landlord. Landlord shall not unreasonably withhold, condition or delay its
approval of nonstructural interior alterations to the Premises, provided that
such alterations do not adversely affect any of the Building systems.
Notwithstanding the foregoing, Landlord’s prior written approval is not
required for any (i) decorative work, such as painting, wall covering,
carpeting and picture hanging or (ii) other alteration not requiring the
approval of, and/or submission of plans to, any governmental agency
(including the Department of Buildings of the City of New York), provided
that such alteration does not adversely affect (other than to a de minimis
extent) the proper functioning of any of the Building systems outside of the
Premises; and provided, further, that all such work shall be performed in
accordance with all applicable provisions of Article 8 (except the
requirement of Landlord’s approval of work or the plans and specifications
for such work; Tenant, nevertheless, is required to provide Landlord with a
reasonably detailed written description of such work, at least ten (10) days
prior to the start thereof). All alterations shall be performed in accordance
with the foregoing and all of the conditions set forth in Article 8.

	
 

	
 

	
RESTORATION:

(Article 8C(ii))

	
Tenant shall have no obligation to restore
the Premises, except for any alterations, additions or improvements which are
not standard for normal office installations (“Specialty Alterations”), e.g.,
reinforced flooring for high density filing, vaults and internal stairways,
which shall be removed by Tenant and any damage repaired, at Tenant’s
expense, prior to the expiration of the term of the Lease; provided, however,
that Landlord shall be required to designate each such Specialty Alteration
that Tenant must remove at the time Landlord approves any such Specialty
Alteration; and provided, further, that Tenant’s request for consent to such
alteration specifies (in bold faced type and capital letters) that Landlord
must so designate. Tenant shall not be required to remove any executive
lavatories installed by Tenant and in no event will any Supplemental A/C Unit
(as 

14

	
 

	
 

	
 

	
defined in Article 31C) be deemed a
Specialty Alteration.

	
 

	
 

	
LANDLORD’S
REVIEW

OF TENANT PLANS: 

(Article 8B(i))

	
General. All
alterations requiring the submission of plans to any governmental agency
(including the Department of Buildings of the City of New York) must be
performed substantially in accordance with plans and specifications first
submitted to Landlord for its prior written approval, which approval shall
not be unreasonably withheld, conditioned or delayed with respect to
nonstructural interior alterations to the Premises that do not adversely
affect (other than to a de minimis extent) the proper functioning of the
Building systems.

	
 

	
 

	
 

	
Deemed Approval.
If Landlord fails to respond to any such request for approval within ten (10)
business days after Landlord’s initial receipt of such plans and
specifications (or within five (5) business days after Landlord’s receipt of
any resubmission of such plans and specifications by Tenant), Tenant may send
Landlord a second request for approval of such plans and specifications. If
Landlord fails to respond to such second request for approval within five (5)
days after its receipt of same, then Landlord shall be deemed to have
approved such plans and specifications (provided such second request
specifies in bold faced type and capital letters that Landlord shall be
deemed to have approved such plans and specifications if Landlord fails to
respond to such second request within such five (5) day period).

	
 

	
 

	
SNDA:

(Article 13)

	
The Lease is subject and subordinate to all
ground leases, mortgages, building loan agreements, leasehold mortgages,
spreader and consolidation agreements and other similar documents and
instruments, which hereafter affect such leases or the real property of which
the Premises form a part; provided that, as a condition precedent to Tenant’s
agreement to subordinate, Landlord shall obtain from the holder of any such
future superior interest, for the benefit of Tenant, a subordination,
non-disturbance and attornment agreement, in the form then customarily used
by it, provided such form is commercially reasonable.

	
 

	
 

	
LANDLORD’S
FAILURE

TO REPAIR/ PROVIDE

SERVICES:

(Articles 10B and 10C)

	
General. Landlord
shall operate, maintain and make all necessary repairs (both structural and
nonstructural) to the Building systems servicing the Premises and to the
public portions of the Building, both exterior and interior, in conformance
with standards applicable to first-class office buildings in mid-town
Manhattan, except such repairs which are necessitated by the acts, omissions
or negligence of Tenant, its agents, employees or contractors (subject,
however, to the 

15

	
 

	
 

	
 

	
waiver of subrogation and right of recovery
provisions Article 42E), which shall be made by Landlord at Tenant’s expense.

	
 

	
 

	
 

	
Self Help. Notwithstanding
anything contained in the Lease to the contrary, if Landlord fails to comply
with such maintenance or repair obligations for a period of fifteen (15) days
after notice of the condition, and such failure materially and adversely
affects Tenant’s use and occupancy of the Premises for the conduct of its
normal business operations, then Tenant, after an additional five (5) days’
prior written notice to Landlord, may perform such maintenance or repair, as
the case may be, for the account of Landlord, pursuant to the terms of
Article 10C, except if such performance (i) affects any Building systems
which do not exclusively service the Premises or affects any area outside of
the Premises which is occupied by another tenant or occupant pursuant to an agreement
with Landlord or (ii) affects any structural portion of the Building. Such
second 5-day notice shall contain a statement (in bold face type and capital
letters) of Tenant’s intention to exercise its “self-help” rights under
Article 10C in the event Landlord does not timely comply with its maintenance
or repair obligations.

	
 

	
 

	
RENT
ABATEMENT

FOR FAILURE OF

SERVICES:

(Article 22D (i) and (ii))

	
Failure of Services for Reasons other than
Force Majeure or a Failure of the Public Utility Provider.
Notwithstanding anything contained in the Lease to the contrary, (i) if as a
result of any repair, alteration, addition or improvement to the Building by
or on behalf of Landlord or (ii) the failure of Landlord to make any repair
or to provide any service to the Premises which Landlord is obligated to make
or provide (as the case may be) under the Lease (except if such failure is
due to force majeure, or a failure by the public utility to provide such
service to the Building, to the extent such service is not otherwise
reasonably available), Tenant and its employees cannot and do not use (except
on an emergency basis) all or any portion of the Premises for the normal
conduct of its business (or for the performance of Tenant’s Initial
Installation Work, as the case may be), for a period of three (3) consecutive
Business Days, then Tenant shall be entitled to an abatement of all rent and
additional rent for each day after such three (3) business day period for
such portion of the Premises which cannot be used as set forth above.

	
 

	
 

	
 

	
Failure of Services due to Force Majeure or
a Failure of the Public Utility Provider.
Notwithstanding anything contained in the Lease to the contrary, if as a
result of the failure of Landlord to make any repair or to provide any
service to the Premises which Landlord is obligated to make or provide (as
the case may 

16

	
 

	
 

	
 

	
be) under the Lease, which failure is due
to force majeure, or a failure by the public utility to provide such service
to the Building (but is not due to any of the causes set forth above in the
“Failure of Services for Reasons other than Force Majeure” section of this
digest), Tenant and its employees cannot and do not use (except on an
emergency basis) all or any portion of the Premises for the normal conduct of
its business (or for the performance of Tenant’s Initial Installation Work,
as the case may be), for a period of ten (10) consecutive days, then Tenant
shall be entitled to an abatement of all rent and additional rent for each
day after such ten (10) day period for such portion of the Premises which
cannot be used as set forth above.

	
 

	
 

	
INSURANCE:

	
See Article 42.

	
 

	
 

	
SIGNAGE:

(Article 27A(i) and (ii))

	
Tenant shall not affix, erect or inscribe
any signs, projections, awnings, signals or advertisements of any kind to any
part of the Premises including the inside or outside of the windows or doors
and will not paint the outside of the doors or the inside or outside of the
windows unless and until the style, size, color, construction and location
thereof have been approved in writing by Landlord (which approval shall not
be unreasonably withheld, conditioned or delayed); provided, however, that no
such approval shall be required with respect to any identity signage which is
not readily visible from the elevators which service the 14th floor or from
any other area outside of the Premises; provided, however, that if and so
long as Coty Inc. or its Affiliate or a Successor Entity is the Tenant under
the Lease, no such approval shall be required with respect to any such
identity signage which is readily visible from the elevators which service
the 14th floor of the Building, provided Tenant gives Landlord at least
fifteen (15) days’ prior written notice of the installation of such signage;
and provided, further, that such signage is professionally prepared and in
keeping with the first class nature of the Building.

	
 

	
 

	
 

	
Notwithstanding anything contained in the
Lease to the contrary, Tenant, at its expense, shall cause Tenant’s entrance
door for any partial floor included in the Premises (other than the 15th
Floor Portion or any other partial floor hereafter included in the Premises
which comprises more than 35% of the RSF of such floor), and any approved
sign on Tenant’s entrance door for such partial floor, to conform to the
standards and specifications for entrance doors and signage set forth in Exhibit
K attached to the Lease, and that any such entrance door and signage
shall be manufactured by a company designated by Landlord in writing and
installed by a company approved by Landlord in writing.

17

	
 

	
 

	
 

	
Tenant shall submit to Landlord for its
prior written approval a proposal regarding the content of any such entrance
door sign, promptly after the execution and delivery of the Lease by Tenant.
Any changes to such approved entrance door sign shall be subject to
Landlord’s prior reasonable approval and to Landlord’s then standard signage
specifications.

	
 

	
 

	
DEFAULTS:

(Article 5)

	
Landlord may terminate the Lease on five
(5) days’ notice: (i) if Tenant fails to pay any installment of fixed annual
rent or additional rent or any other payment when due, and such failure
continues for a period of ten (10) days after notice to Tenant thereof; or
(ii) if Tenant fails to cure a default in the performance of any covenant in
the Lease (except the payment of rent), or any rule or regulation, within
thirty (30) days after written notice thereof from Landlord, or if such
default cannot be completely cured in such time, if Tenant shall not promptly
proceed to cure such default within said thirty (30) days, or shall not
complete the curing of such default with due diligence; or (iii) if a
petition in bankruptcy shall be filed by or against Tenant or if Tenant shall
make a general assignment for the benefit of creditors, or receive the benefit
of any insolvency or reorganization act; or (iv) if a receiver or trustee is
appointed for any portion of Tenant’s property and such appointment is not
vacated within ninety (90) days; or (v) if an execution or attachment shall
be issued under which the Premises shall be taken or occupied or attempted to
be taken or occupied by anyone other than Tenant.

	
 

	
 

	
RENEWAL
OPTION:

(Article 32A)

	
Tenant has the option, exercisable upon
written notice given to Landlord not later than twelve (12) months prior to the
Expiration Date of the initial term of the Lease, to renew the term of the
Lease for one (1) additional period of five (5) years (the “Extended Term”),
upon the same terms as the Lease, except that (i) the fixed annual rental
rate for the Extended Term shall be the fair market rental rate for the then
existing Premises (the “FMR”) as of the first day of the Extended Term
(taking into account all relevant factors), (ii) the base year for
calculating Tenant’s Share of operating expenses shall be the calendar year
during which the commencement date of the Extended Term occurs, (iii) the
base tax year for calculating Tenant’s Share of real estate taxes shall be
the real estate tax year during which the commencement date of the Extended
Term occurs and (iv) the Lease (as extended for the Extended Term) shall
contain no renewal option.

	
 

	
 

	
DETERMINATION
OF

FAIR MARKET RENTAL:

	
The FMR for the Premises effective as of
the commencement of the Extended Term shall be determined during the last six
(6) 

18

	
 

	
 

	
 

	
 

	
RATE:

(ARTICLE 32A(b))

	
months of the initial term of the Lease as
follows. On or before the commencement of such six (6) month period, Landlord
shall notify Tenant of Landlord’s determination of the FMR. Within thirty
(30) days after the later of (i) the commencement of such six (6) month
period or (ii) Tenant’s receipt of Landlord’s determination of the FMR,
Tenant shall respond to Landlord’s notice with Tenant’s determination of the
FMR. Upon receipt of such notice from Tenant, Landlord and Tenant shall seek
to agree as to the amount of the FMR. If they shall not agree as to the FMR
within thirty (30) days after receipt of such notice from Tenant, then the
FMR shall be determined by appraisal as set forth in Article 32A(e).

	
 

	
 

	
OCCUPANCY

CONDITION TO

RENEWAL OPTION:

(Article 32B)

	
The exercise of the renewal option by
Tenant shall be conditioned upon the occupancy of at least seventy-five
percent (75%) of the then RSF of the Premises by Tenant and/or any Affiliate
or Desk Space User (as hereinafter defined).

	
 

	
 

	
EXPANSION
OPTION:

(Article 43A)

	
If, at any time prior to the first
anniversary of the Commencement Date, Landlord desires to lease any space on
the 13th, 16th, 17th, 18th or 19th floor of the Building which contains at
least 7,500 RSF and is then or, within six (6) months following the date
Landlord’s OS Availability Notice (as hereinafter defined) is given, will be
vacant and available for leasing by Landlord (i.e., subject only to
the option of another tenant granted prior to July 14, 2008), then Landlord
shall notify Tenant of such fact, which notice (“Landlord’s OS Availability
Notice”) shall include a description of the layout, configuration and RSF of
such space (an “Option Space”), and the date Landlord reasonably anticipates
the term of the leasing of such space shall commence (the “Anticipated
Commencement Date”). If and so long as Tenant is not in default under the
Lease beyond any applicable notice and/or grace period, Tenant shall have the
one-time option (with respect to such space) to add all but not part of such
space to the Premises pursuant to all of the applicable terms, covenants and
conditions of the Lease (except as otherwise provided in Article 43A),
subject to the following terms and conditions:

	
 

	
 

	
 

	
 

	
(i)

	
Tenant shall give Landlord written notice
of its election so to add all but not part of an Option Space to the
Premises, which notice shall be given no later than thirty (30) days after
the date Landlord’s OS Availability Notice is given.

	
 

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
The term of the leasing of such Option
Space shall

19

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
commence on
the OS Commencement Date (as hereinafter defined), and shall end on the
expiration or sooner termination date of the initial term of the Lease, or,
if Tenant exercises its renewal option, the expiration or sooner termination
date of the Extended Term. The term “OS Commencement Date” when used herein
shall mean the thirty-first (31st) day after the date when Landlord delivers
vacant possession of an Option Space to Tenant (free of any occupancies or
tenancies) with Landlord’s OS Work (as hereinafter defined) therein
substantially completed in accordance with the terms of Article 43A(ii).

	
 

	
 

	
 

	
 

	
 

	
 

	
(iii)

	
Commencing
on the date which is ten (10) months after the OS Commencement Date (the “OS
Rent Commencement Date”), Tenant shall pay Landlord fixed annual rent for an
Option Space at the same rate per RSF set forth in the Lease with respect to
the original Premises.

	
 

	
 

	
 

	
 

	
 

	
 

	
(iv)

	
Tenant
agrees to accept an Option Space in its then “as is” condition, except that
Landlord shall perform the work set forth in Article 23B (i.e., “Landlord’s
Work”) in such Option Space in accordance with the provisions of Article 23B
(“Landlord’s OS Work”) (taking into account, however, the fact that an Option
Space may not be a full floor and, therefore, (a) Landlord shall perform, at
its own expense, such other work as may be legally necessary or appropriate
in first class office buildings in Midtown Manhattan to lease a partial
floor, such as installing any necessary common corridor and (b) Landlord
shall not perform such Landlord’s Work that is appropriate for a full floor
tenant in a first class office building in Midtown Manhattan, but shall
perform such Landlord’s Work that is appropriate for a partial floor tenant
in such a building). Tenant shall effect all other work necessary for Tenant
to conduct its business in the Option Space and to make such space suitable
and ready for Tenant’s occupancy and use (“Tenant’s OS Initial Installation
Work”).

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Tenant shall
effect such work in accordance with the provisions of Article 23 which are
applicable to the performance of Tenant’s Initial Installation Work. Tenant
shall also be entitled to a contribution (“Landlord’s OS Contribution”) from
Landlord toward 

20

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
the cost of
Tenant’s OS Initial Installation Work, which shall be disbursed to Tenant in
accordance with the provisions of Article 23C(iii) (all of which provisions
shall apply to Landlord’s OS Contribution as if it were Landlord’s
Contribution), except that the amount of Landlord’s OS Contribution shall be
an amount equal to the unamortized portion of $50.00 per RSF included in the
Option Space, which unamortized portion shall be calculated based on a
fraction, the numerator of which shall be the number of calendar months remaining
in the term of the Lease after the OS Commencement Date, and the denominator
of which shall be 180 (and the reference to “$899,745.00” in Article 23C(iii)
shall be deemed changed to an amount equal to “fifteen percent (15%) of the
amount of Landlord’s OS Contribution”, as determined hereunder); provided,
however, (1) that if the Option Space consists of the entire RSF of a floor,
then the amount of Landlord’s OS contribution shall be increased by an amount
equal to $254,000.00, and Tenant shall be required to renovate and refurbish
the core men’s and women’s bathrooms in said Option Space (as provided in
Article 23C(viii)); (2) that if the Option Space consists of less than a full
floor, then Landlord shall, within ten (10) months after the date Tenant
exercises its option with respect to such Option Space, perform all work
which is necessary to upgrade the core men’s and women’s bathrooms on such
floor in accordance with the specifications for upgrading such core bathrooms
in the Building which are part of the Building Improvement Program (if and to
the extent such core bathrooms have not already been so upgraded pursuant to
such Building Improvement Program); and (3) that if the sum of (x) the age of
any Building air conditioning unit in such Option Space, plus (y) the number
of full calendar years then remaining in the term of this lease, is more than
twenty (20) years, then the amount of Landlord’s OS Contribution shall be
increased by $4,500 per ton of cooling capacity for each such air conditioning
unit (assuming one (1) ton of cooling capacity for every 430 RSF included in
the Option Space), and Tenant shall be required to replace such unit or
units, as the case may be (as provided in Article 23C(vii)) (except that if
any such unit services such Option Space as well as other adjacent space
which is not included in 

21

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
such Option
Space, then Landlord shall promptly replace such unit with a new Building
standard air conditioning unit, which shall be of equal or better quality to
the Petra Engineering Industries Co., Model PAHHC62C2).

	
 

	
 

	
 

	
 

	
 

	
 

	
(v)

	
Tenant shall
pay Landlord operating expense escalation additional rent for an Option
Space, in accordance with Article 2B, except that Tenant’s Share shall be
calculated based on a fraction, the numerator of which shall be the RSF of
the Option Space, and the denominator of which shall be 2,720,595.

	
 

	
 

	
 

	
 

	
 

	
 

	
(vi)

	
Tenant shall
pay Landlord real estate tax escalation additional rent for an Option Space,
in accordance with Article 2C, except that Tenant’s Share shall be calculated
based on a fraction, the numerator of which shall be the RSF of the Option
Space, and the denominator of which shall be 2,720,595.

	
 

	
 

	
 

	
 

	
 

	
 

	
(vii)

	
Tenant shall
purchase electricity from Landlord for an Option Space on a submetering
basis, in accordance with the provisions of Article 3, and Landlord, as part
of Landlord’s OS Work, shall install a meter or meters and any and all wiring
and other equipment which is proper and necessary to furnish redistributed
electricity to the Option Space on a submetering basis.

	
 

	
 

	
 

	
 

	
RIGHT OF FIRST

OFFER:

(Article 43B)

	
 

	
If, at any time during the initial term of
the Lease after the first anniversary of the Commencement Date (and
not during the Extended Term), Landlord desires to lease any space on the
13th, 16th, 17th, 18th or 19th floor of the Building which contains at least
7,500 RSF and is then or, within six (6) months following the date Landlord’s
RS Availability Notice (as hereinafter defined) is given, will be vacant and
available for leasing by Landlord (i.e., subject only to the option of
another tenant granted prior to the Effective Date), then Landlord shall
notify Tenant of such fact, which notice (“Landlord’s RS Availability
Notice”) shall include (i) a description of the layout, configuration and RSF
of such space (a “ROFO Space”), (ii) Landlord’s determination of the fair and
reasonable annual market rental rate for the ROFO Space (the “Fair Offer
Rental”), which shall constitute the maximum amount thereof that Landlord may
claim as the Fair Offer Rental for such ROFO Space in any arbitration thereof
(“Landlord’s Maximum Offer Determination”) and (iii) the Anticipated
Commencement Date,

	
 

	
 

	
 

	
 

22

	
 

	
 

	
 

	
the rent commencement date and the
condition in which Landlord is willing to lease such space including, without
limitation, any base Building work which Landlord is willing to perform
and/or work allowance or contribution which Landlord is willing to make
towards the cost of Tenant’s initial installation in such space. The term of
the leasing of any ROFO Space shall be co-terminous with the scheduled
expiration date of the term of the Lease; except, however, that such term
must be for a minimum of five (5) years, so that if the Anticipated
Commencement Date, occurs less than five (5) years prior to the last day of
the 15th Lease Year, then Tenant may not exercise its option to lease such
ROFO Space unless it simultaneously exercises its renewal option pursuant to
Article 32 (in which case the term of the leasing of such ROFO Space, as well
as any other ROFO Space thereafter leased by Tenant, shall expire on the last
day of the twentieth (20th) Lease Year).

	
 

	
 

	
 

	
If and so long as Tenant is not in default
under the Lease beyond any applicable notice and/or grace period, Tenant
shall have the one-time option (with respect to each such ROFO Space),
exercisable by notice to Landlord (an “Acceptance Notice”) given within
thirty (30) days after the date Landlord’s RS Availability Notice is given
(time being of the essence), to add to the Premises all but not part of any
such ROFO Space. Tenant shall notify Landlord in the Acceptance Notice
whether Tenant accepts or disputes Landlord’s Maximum Offer Determination,
and if Tenant disputes Landlord’s Maximum Offer Determination, the Acceptance
Notice shall set forth Tenant’s good faith determination of the Fair Offer
Rental for such ROFO Space, which shall constitute the minimum that Tenant
can claim as the Fair Offer Rental for such ROFO Space in any arbitration
thereof (“Tenant’s Minimum Offer Determination”). If Tenant fails to object
to Landlord’s Maximum Offer Determination in the Acceptance Notice and to set
forth therein Tenant’s Minimum Offer Determination, then Tenant shall be
deemed to have accepted Landlord’s Maximum Offer Determination as the Fair
Offer Rental for such ROFO Space and Landlord and Tenant shall promptly enter
into an amendment of this lease confirming (i) the inclusion of the ROFO
Space in the Premises, (ii) the term of the leasing of such ROFO Space
(including, without limitation, the commencement date and the rent
commencement date), (iii) the fixed annual rents and additional rents payable
for such ROFO Space, (iv) the condition in which such space is being leased,
including without limitation, the base building work which Landlord will
perform (if any), and the work allowance or contribution which Landlord 

23

	
 

	
 

	
 

	
will make towards the cost of Tenant’s
initial installation in such space (if any), all as set forth in Landlord’s
RS Availability Notice, and (e) that the ROFO Space shall otherwise be leased
to Tenant pursuant to all of the terms, covenants and conditions of the Lease
including, without limitation, the provisions of Article 2 regarding real
estate tax escalation additional rent and operating expense escalation additional
rent (except that (x) the base tax year for the ROFO Space shall be the New
York City real estate tax year during which the commencement date of the term
of the leasing of the ROFO Space occurs, (y) the Base Year for the ROFO Space
shall be the calendar year during which the commencement date of the term of
the leasing of the ROFO Space occurs and (z) “The Percentage” for the ROFO
Space shall be determined in the same manner “The Percentage” was determined
for the original Premises), and the provisions of Article 3 regarding
electricity. In all other respects, the terms and conditions of the Lease
shall remain unmodified.

	
 

	
 

	
 

	
In the event that Tenant (1) gives Landlord
an Acceptance Notice within such thirty (30) day period, (2) objects to
Landlord’s Maximum Offer Determination in the Acceptance Notice and (3) sets
forth therein Tenant’s Minimum Offer Determination, then the Fair Offer
Rental for such ROFO Space shall be determined by appraisal pursuant to the
provisions of clauses (1) through (6) of Article 32A(e), except that the
appraisers shall determine the Fair Offer Rental for such ROFO Space and not
for the Premises. In the event that Tenant fails to give Landlord an
Acceptance Notice within such thirty (30) day period, Tenant shall be deemed
to have waived its right with respect to the leasing of such ROFO Space.

	
 

	
 

	
DELAYS IN

POSSESSION OF

OPTION OR ROFO

SPACE:

(Article 43D)

	
If Landlord is unable to make available to
Tenant timely possession of any Option Space or ROFO Space for any reason
beyond its control, then Landlord shall not be subject to any liability by
reason of such delay, the Lease shall not be affected by such delay, but
Landlord shall diligently and in good faith seek to fulfill its obligations
with respect to such space including, without limitation, the commencement
and diligent prosecution of a summary holdover dispossess proceeding against
any tenant holding over in such space.

	
 

	
 

	
 

	
Notwithstanding the foregoing, if Landlord
is unable to make possession of any Option Space or ROFO Space, as the case
may be, available to Tenant within one hundred eighty (180) days after the
Anticipated Commencement Date for such space, then, at Tenant’s election, to
be made by written notice given by Tenant to Landlord within thirty (30) days
after the end of such 

24

	
 

	
 

	
 

	
one hundred eighty (180) day period (time
being of the essence), the exercise by Tenant of its option or right to lease
such Option Space or ROFO Space (as the case may be) shall be deemed null and
void and of no force and effect, and neither party shall have any further
obligation or liability to the other under Article 43 with respect to the
leasing of such space; provided, however, that if Tenant does not make such
election within such thirty (30) day period and Landlord is still unable to
make possession of any Option Space or ROFO Space, as the case may be,
available to Tenant within two hundred seventy (270) days after the
Anticipated Commencement Date for such space, then, at Tenant’s election, to
be made by written notice given by Tenant to Landlord within thirty (30) days
after the end of such two hundred seventy (270) day period (time being of the
essence), the exercise by Tenant of its option or right to lease such Option
Space or ROFO Space (as the case may be) hereunder shall be deemed null and
void and of no force and effect, and neither party shall have any further
obligation or liability to the other under Article 43 with respect to the
leasing of such space.

	
 

	
 

	
INITIAL
LEASING OF

VACANT SPACE BY

LANDLORD:

(Article 43C)

	
Notwithstanding anything contained in the
Lease to the contrary, with respect to any space which is vacant and
available for leasing as of July 14, 2008, the provisions of Article 43 with
respect to the leasing of Option Space and/or ROFO Space by Tenant shall not
be applicable to such space until after the initial leasing of such space by
Landlord after July 14, 2008.

	
 

	
 

	
OCCUPANCY

CONDITION TO

EXPANSION AND ROFO

RIGHTS:

(Article 43G)

	
The exercise by Tenant of its rights under
Article 43 shall be conditioned upon the occupancy of at least eighty-five
percent (85%) of the then RSF of the Premises by Tenant and/or any Affiliate
or Desk Space User.

25

AGREEMENT OF LEASE

EMPIRE STATE BUILDING COMPANY L.L.C.,
Landlord

and

COTY INC., Tenant

	
 

	
 

	
Premises:

	
Entire 14th
Floor and Portion of 15th Floor

	
 

	
Empire State
Building

	
 

	
350 Fifth
Avenue

	
 

	
New York,
New York 10118

	
 

	
 

	
Date:

	
As of July
14, 2008

TABLE OF CONTENTS

	
 

	
 

	
 

	
 

	
Article

	
 

	
 

	
Page

	

	
 

	
 

	

	
 

	
 

	
 

	
 

	
1.

	
COMMENCEMENT
DATE; PURPOSE; ETC.

	
 

	
1

	
2.

	
RENT

	
 

	
5

	
3.

	
ELECTRICITY

	
 

	
19

	
4.

	
ASSIGNMENT

	
 

	
25

	
5.

	
DEFAULT

	
 

	
34

	
6.

	
RE-LETTING;
ETC.

	
 

	
34

	
7.

	
LANDLORD MAY
CURE DEFAULTS

	
 

	
36

	
8.

	
ALTERATIONS

	
 

	
36

	
9.

	
LIENS

	
 

	
39

	
10.

	
REPAIRS

	
 

	
40

	
11.

	
DESTRUCTION

	
 

	
40

	
12.

	
END OF TERM

	
 

	
42

	
13.

	
SUBORDINATION
AND ESTOPPEL; ETC.

	
 

	
43

	
14.

	
CONDEMNATION

	
 

	
45

	
15.

	
REQUIREMENTS
OF LAW

	
 

	
46

	
16.

	
CERTIFICATE
OF OCCUPANCY

	
 

	
47

	
17.

	
POSSESSION

	
 

	
47

	
18.

	
QUIET
ENJOYMENT

	
 

	
48

	
19.

	
RIGHT OF
ENTRY

	
 

	
48

	
20.

	
VAULT SPACE

	
 

	
49

	
21.

	
INDEMNITY

	
 

	
49

	
22.

	
LANDLORD’S
LIABILITY; RENT ABATEMENTS

	
 

	
50

	
23.

	
CONDITION OF
PREMISES; LANDLORD’S WORK; TENANT’S INITIAL INSTALLATION WORK; ETC.

	
 

	
52

	
24.

	
SERVICES

	
 

	
59

	
25.

	
JURY WAIVER;
DAMAGES

	
 

	
61

	
26.

	
NO WAIVER;
ETC.

	
 

	
61

	
27.

	
OCCUPANCY
AND USE BY TENANT; SIGNAGE

	
 

	
62

	
28.

	
NOTICES

	
 

	
64

	
29.

	
WATER

	
 

	
65

	
30.

	
SPRINKLER
SYSTEM

	
 

	
65

	
31.

	
HEAT; AIR
CONDITIONING; ELEVATOR; ETC.

	
 

	
65

	
32.

	
RENEWAL
OPTION

	
 

	
67

	
33.

	
RENT CONTROL

	
 

	
70

	
34.

	
SHORING

	
 

	
70

	
35.

	
EFFECT OF
CONVEYANCE; ETC.

	
 

	
70

	
36.

	
RIGHTS OF
SUCCESSORS AND ASSIGNS

	
 

	
70

	
37.

	
CAPTIONS

	
 

	
70

	
38.

	
LEASE
SUBMISSION

	
 

	
71

	
39.

	
ELEVATORS
AND LOADING

	
 

	
71

	
40.

	
BROKERAGE

	
 

	
71

	
41.

	
ARBITRATION

	
 

	
72

	
42.

	
INSURANCE

	
 

	
72

	
43.

	
EXPANSION
OPTION; RIGHT OF FIRST OFFER

	
 

	
74

	
44.

	
LATE CHARGES

	
 

	
80

	
45.

	
ENVIRONMENTAL
COMPLIANCE

	
 

	
81

	
46.

	
LEASE FULLY
NEGOTIATED

	
 

	
82

	
 

	
 

	
 

	
 

	
47.

	
SMOKING
RESTRICTIONS

	
 

	
82

	
48.

	
ANTI-TERRORISM
REQUIREMENTS

	
 

	
82

	
49.

	
CONDOMINIUM
PROVISIONS

	
 

	
83

	
50.

	
ADDITIONAL
DEFINITIONS; COUNTERPARTS

	
 

	
85

	
51.

	
USE OF
BUILDING NAME AND IMAGE

	
 

	
86

	
52.

	
APPLICABLE
LAW

	
 

	
86

	
 

	
EXHIBIT A -
Diagram of Demised Premises 

	
EXHIBIT A-1
- Legal Description 

	
EXHIBIT B -
Cleaning Schedule 

	
EXHIBIT C -
Non-Disturbance Agreements 

	
EXHIBIT D -
List of Approved Contractors 

	
EXHIBIT D-1
- List of Approved Contractors for Tenant’s Initial Installation Work 

	
EXHIBIT E -
Sample Escalation Statement 

	
EXHIBIT F -
Certificate of Occupancy 

	
EXHIBIT G -
Option Space/ROFO Space 

	
EXHIBIT H -
Current Building Renovation and Upgrade Program 

	
EHXIBIT I -
Building Standard “White Box” Condition Specifications 

	
EXHIBIT J -
Building Standard Common Corridor Specifications 

	
EXHIBIT K -
Entrance Door and Signage Specifications 

	
SCHEDULE A -
Rules and Regulations 

LEASE made as of this 14th day of July, 2008, between EMPIRE
STATE BUILDING COMPANY L.L.C., a New York limited liability company, with an
address at 350 Fifth Avenue, New York, New York 10118, hereinafter referred to
as “Landlord” and COTY INC., a Delaware corporation with an address at Two Park
Avenue, New York, New York 10016, hereinafter referred to as “Tenant”.

WITNESSETH:

Landlord hereby leases to Tenant and Tenant hereby hires from Landlord
(i) the entire rentable area of the 14th floor (the “14th
Floor Portion”), and (ii) a portion of the 15th floor (the “15th
Floor Portion”), all as more particularly depicted by cross hatching on Exhibit
A (which is not necessarily to scale) annexed hereto and made part hereof (said
premises are hereinafter referred to as the “demised premises” or the
“premises”), in the building known as the Empire State Building, located at 350
Fifth Avenue, New York, New York 10118 (the “building”), in the County, City
and State of New York, for a term of years, to commence on the Commencement
Date (as hereinafter defined in Article 1A), and to expire on the last day of
the 15th Lease Year (as hereinafter defined in Article 1E) (the
“Expiration Date”), unless such term shall sooner end as herein provided, both
dates inclusive (and subject to Tenant’s renewal option as set forth in Article
32 of this lease), upon the terms and conditions hereinafter provided. For all
purposes under this lease, (a) the rentable square foot area of the 14th
Floor Portion shall be deemed to be 51,527 rentable square feet, irrespective
of any disparity between (1) such figure and any actual measurement of such
area or (2) the usable area thereof; (b) the rentable square foot area of the
15th Floor Portion shall be deemed to be 36,329 rentable square
feet, irrespective of any disparity between (1) such figure and any actual
measurement of such area or (2) the usable area thereof; (c) the rentable
square foot area of the entire demised premises (i.e., the 14th
Floor Portion and the 15th Floor Portion) shall be deemed to be
87,856 rentable square feet, irrespective of any disparity between (1) such
figure and any actual measurement of such area or (2) the usable area thereof;
and (d) the rentable square foot area of the office and commercial space in the
building shall be deemed to be 2,720,595 rentable square feet.

Landlord and Tenant covenant and agree:

1. COMMENCEMENT DATE; PURPOSE; ETC.

          A. The term
of this lease shall commence on the thirty-first (31st) day after
the date (the “Commencement Date”) when the last of the following shall have
occurred: (i) Landlord delivers vacant possession of the demised premises to
Tenant, free of any occupancies or tenancies; (ii) Landlord substantially
completes Landlord’s Work (as hereinafter defined in Article 23B); and (iii)
Landlord delivers to Tenant the three (3) non-disturbance agreements described
in Article 13 of this lease. Landlord shall give Tenant at least fifteen (15)
days’ prior written notice of the date Landlord will substantially complete
Landlord’s Work.

          B. Landlord’s
Work shall be deemed to have been substantially completed despite the fact that
minor insubstantial details of construction and mechanical adjustments (i.e.,
“punch list items”) remain to be completed, provided the demised premises are
accessible and reasonably usable by Tenant for the purpose of effecting Tenant’s
Initial Installation Work (as hereinafter defined in Article 23C(i)); and
provided, further, (i) that the electrical service at the 

panels described in Article 23B(iv) of this lease, and a chilled water
line in each of the 14th Floor Portion and the 15th Floor
Portion (which is then capable of providing the chilled and warm water service
which is described in Article 24C of this lease), are available for use by
Tenant and its contractors in connection with such Tenant’s Initial
Installation Work, and (ii) that the building systems through which any other
services which are required to be provided by Landlord hereunder are also
available in the demised premises (or in locations outside of the demised
premises, if so provided hereunder), so that, upon completion of such Tenant’s
Initial Installation Work, such services can be provided by Landlord as
required hereunder. Landlord shall nevertheless complete such punch list items
within thirty (30) days of the Commencement Date (and Tenant shall provide Landlord
and its contractors with such access to the demised as is reasonably necessary
to do so, using reasonable diligence and without the necessity of incurring
overtime or premium labor charges).

          C. Landlord
shall, in accordance with the foregoing, fix the Commencement Date and notify
Tenant of the date so fixed. When the Commencement Date has so been determined,
the parties hereto shall, within thirty (30) days thereafter, at the request of
either Landlord or Tenant, execute a written agreement confirming such date as
the Commencement Date. Any failure of the parties to execute such written
agreement shall not affect the validity of the Commencement Date as fixed and
determined by Landlord, as aforesaid. Any dispute regarding the occurrence of
the Commencement Date shall be resolved by arbitration in accordance with the
provisions of Article 41 of this lease.

          D. Tenant
by entering into occupancy of the demised premises shall be conclusively deemed
to have agreed that Landlord had substantially completed Landlord’s Work,
unless within twenty (20) days after such date Tenant shall give written notice
(hereinafter called the “Punch List Notice”) to Landlord specifying the
respects in which the same were not in satisfactory condition. The giving of
the Punch List Notice shall have no effect whatsoever upon the Commencement
Date.

          E. The term
“Lease Year” when used in this lease shall mean the twelve (12) months
commencing on the Rent Commencement Date (as hereinafter defined in Article 2A)
(or if the Rent Commencement Date is not the first day of a month, the first
day of the month following the month in which occurs the Rent Commencement
Date) and each subsequent period of twelve (12) months. The first Lease Year
shall include the period, if any, from the Rent Commencement Date to the end of
the month in which the Rent Commencement Date occurs.

          F. (i)
Landlord shall use commercially reasonable efforts to substantially complete
Landlord’s Work as soon as reasonably practicable after the date (the
“Effective Date”) this lease is executed and delivered by Landlord and Tenant.
However, if, despite the exercise of such commercially reasonable efforts by
Landlord, Landlord fails to substantially complete Landlord’s Work on or before
the date (the “First Outside Date”) that is four (4) months after the Effective
Date, then, notwithstanding anything contained hereinabove to the contrary,
Tenant shall be entitled to a rent credit in the amount of $12,516.47 per day
for each day after the First Outside Date that Landlord fails to substantially
complete Landlord’s Work. Such rent credit shall be applied, until fully
depleted, against the first fixed annual rent (without electricity) due under
this lease from and after the Rent Commencement Date.

2

          (ii) If
Landlord fails to substantially complete Landlord’s Work on or before the date
(the “Self Help Outside Date”) that is five (5) months after the Effective
Date, then Tenant (without any obligation to do so) may, at any time within
sixty (60) days after the Self Help Outside Date (time being of the essence),
give Landlord written notice (“Tenant’s Self Help Notice”) that, unless
Landlord substantially completes Landlord’s Work within ten (10) days after
such notice shall have been given, Tenant shall perform any and all work
necessary to complete Landlord’s Work. Any such work by Tenant shall be
performed in accordance with all applicable laws, rules and regulations and all
applicable provisions of this lease (other than any such provisions requiring
Landlord’s prior approval with respect to any alterations by Tenant). Tenant
agrees that Tenant’s Self Help Notice shall specify (in bold face type and
capital letters) that in the event Landlord does not substantially complete
Landlord’s Work within such ten (10) day notice period, then Tenant shall
exercise its “self-help” rights under this subparagraph (ii) with respect to
Landlord’s Work. Tenant shall provide Landlord with reasonable written proof of
the out-of-pocket costs incurred by Tenant in connection with such work, and
Landlord shall reimburse Tenant for such costs within thirty (30) days after
Landlord’s receipt of such proof; provided, however, that in no event shall
such reimbursement obligation of Landlord exceed the commercially reasonable
out-of-pocket cost to Tenant of performing such work. If Tenant shall exercise
its self-help rights under this subparagraph (ii), then (1) any rent credit to
which Tenant is then entitled under subparagraph (i) above shall only continue
until the earlier to occur of (x) the date that Tenant substantially completes
Landlord’s Work or (y) the date (as same may be extended by any of the causes
set forth in Article 22A(i) of this lease) on which Tenant, using commercially
reasonable efforts to do so, should have completed Landlord’s Work; and (2)
Tenant shall no longer have the right to cancel this lease pursuant to
subparagraph (iii) below.

          (iii)
Notwithstanding anything contained hereinabove to the contrary, if Landlord
fails to substantially complete Landlord’s Work on or before the date (the
“Second Outside Date”) that is six (6) months after the Effective Date (and
provided Tenant has not theretofore exercised its “self help” rights pursuant
to subparagraph (ii) above), then, at Tenant’s election, to be exercised by
written notice given by Tenant to Landlord at any time within sixty (60) days
after the Second Outside Date (time being of the essence), Tenant may terminate
this lease on ten (10) days’ prior written notice given to Landlord, and unless
Landlord substantially completes Landlord’s Work within ten (10) days after
Tenant’s termination notice shall have been received by Landlord, the term of
this lease shall end as if the Second Outside Date were the date originally set
forth in this lease as the expiration date of the term, and the parties shall
have no further obligations or liabilities to each other hereunder, except
those expressly stated to survive the expiration or earlier termination of the
term of this lease; and except, also, that Landlord shall reimburse Tenant for
the reasonable out-of-pocket cost to Tenant of all plans and specifications
theretofore prepared for Tenant in connection with this lease and the demised
premises, up to but not in excess of a total of $351,424.00 (which
reimbursement shall be made promptly after Tenant provides Landlord with paid
invoices or other reasonably sufficiently evidence of such out-of-pocket cost
to Tenant of such plans and specifications).

          (iv)
Notwithstanding the foregoing, the First Outside Date, the Self Help Outside
Date and the Second Outside Date shall each be extended, for no more than sixty
(60) days in the aggregate, by one day for each day that the performance of
Landlord’s Work is delayed as a result of any of the causes set forth in
Article 22A(i) of this lease.

3

          G. Tenant
shall use and occupy the demised premises solely as offices relating to the
conduct of Tenant’s or any permitted occupant’s business, and for uses
incidental and related thereto, and for no other purpose, such covenant being
of the essence of this lease. Notwithstanding anything contained herein to the
contrary, a breach of such covenant which continues beyond any applicable
notice and or grace period shall be deemed a material and substantial default
by Tenant under this lease, for which Landlord shall have all remedies
available to it under this lease and under the law, including, without
limitation, the right to enforce such covenant by injunctive or other
appropriate equitable relief. Without limiting the generality of the foregoing,
it is expressly understood that no portion of the demised premises shall be
used for (a) retail operations of any retail or branch bank, trust company,
savings bank, industrial bank, savings and loan association, credit union or
personal loan association, or (b) a public stenographer or public typist, (c) a
barber shop, beauty shop or beauty parlor, (d) a telephone or telegraph agency,
(e) a telephone, court reporting, stenographic or secretarial service, (f) a
public messenger service, (g) a public travel or tourist agency, (h) an
employment agency (other than an executive search firm which conducts business
by appointment only), (i) a restaurant or bar, (j) a public commercial document
reproduction or offset printing service, (k) a public vending machines
operation, (l) a retail, wholesale or discount shop for sale of books,
magazines, audio or video tapes, CD ROM, DVD ROM or other devices for the
recording or transmitting of audio or visual signals, images, music or speech,
electronic equipment and accessories or any other merchandise, (m) a retail
service shop, (n) a labor union, (o) a school or classroom (other than for
training of Tenant’s employees), (p) a governmental or quasi-governmental bureau,
department or agency, including an autonomous governmental corporation, embassy
or consular office of any country or other quasi-autonomous or sovereign
organization, whether or not subject to the Foreign Sovereign Immunities Act of
1976, as from time to time amended, or any successor statute, (q) intentionally
deleted, (r) intentionally deleted, (s) a company engaged in the business of
renting office or desk space to third parties, (t) any person, organization,
association, corporation, company, partnership entity or other agency immune
from service or suit in the courts of the State of New York or the assets of
which may be exempt from execution by Landlord in any action for damages, (u) a
factory of any kind, (v) intentionally deleted, (w) a payroll office or check
cashing operation, (x) a clinic (except that a portion of the demised premises
may be used by Tenant as a nurse’s clinic to treat employees who become ill
during the work day) or (y) any illegal purpose. Tenant shall not affix any
sign to any window or exterior surface of the demised premises nor install or
place any sign within the demised premises that may be seen from the outside.
In the event that the demised premises shall be used by a firm whose principal
business is real estate brokerage, then in no event shall such firm shall be
permitted to solicit any tenants of the building.

          H.
Notwithstanding anything contained in this lease to the contrary, Tenant and
its contractors may enter the demised premises during the thirty (30) day
period immediately proceeding the Commencement Date, for the purposes of
preparing for and performing Tenant’s Initial Installation Work. Any such early
entry into the demised premises shall be subject to all of the terms, covenants
and conditions of this lease, except that Tenant shall not be required to pay
Landlord any fixed annual rent or real estate tax or operating expense
escalation additional rent hereunder for such period (but Tenant shall be
required to pay Landlord for Tenant’s electricity consumption in the demised
premises during such period, in accordance with the provisions of Article 3 of
this lease).

4

2. RENT

          Tenant
agrees to pay as rent herein provided at the office of Landlord or such other
place as Landlord may designate, payable in United States legal tender by wire
transfer or by good and sufficient check, and without any notice, set off or
deduction whatsoever (except as specifically set forth herein), each of the
types of rent set forth in this Article 2.

          Any sum
other than fixed annual rent payable hereunder shall be deemed additional rent
and due on demand unless otherwise specifically provided. Landlord shall have
the same rights and remedies hereunder with respect to Tenant’s non-payment of
additional rent as it has with respect to Tenant’s non-payment of fixed annual
rent. Unless otherwise specified herein, each payment of additional rent
hereunder is due and payable within thirty (30) days after demand therefor.

          A. Fixed
Annual Rent: There is herein reserved to Landlord for the entire
term of this lease fixed annual rent equal to the aggregate amount of the sums
hereinafter set forth. Fixed annual rent shall be paid in advance as follows:
commencing on the date which is ten (10) months after the Commencement Date
(the “Rent Commencement Date”), and on the first day of each month thereafter
throughout the term of this lease, Tenant shall pay to Landlord, without
notice, deduction, set off or reduction (except as specifically set forth
herein), monthly payments of fixed annual rent equal to one-twelfth (1/12th) of
each of the following annual amounts:

	
 

	
 

	
 

	
 

	
(i)

	
From the Rent Commencement Date through the last day of the fifth
Lease Year: Four Million Five Hundred Sixty-Eight Thousand Five Hundred Twelve
and 00/100 ($4,568,512.00) Dollars per annum ($380,709.33 per
month);

	
 

	
 

	
 

	
 

	
(ii)

	
From the first day of the sixth Lease Year through the last day of
the tenth Lease Year: Four Million Nine Hundred Nineteen Thousand Nine
Hundred Thirty-Six and 00/100 ($4,919,936.00) Dollars per annum ($409,994.67 per
month); and

	
 

	
 

	
 

	
 

	
(iii)

	
From the first day of the eleventh Lease Year through the last day of
the fifteenth Lease Year: Five Million Two Hundred Seventy-One Thousand Three
Hundred Sixty and 00/100 ($5,271.360.00) Dollars per annum ($439,280.00 per
month)

          Should the
Rent Commencement Date occur on any day other than the first day of a month,
then the fixed annual rent for the unexpired portion of such month shall be
adjusted and prorated on a per diem basis based on the actual number
of days in said month.

          B. Operating
Expenses Escalation: Tenant shall pay to Landlord, as additional rent, operating expense escalation in
accordance with this paragraph B:

          (i)
Definitions: For the purpose of this paragraph, the following definitions shall
apply:

5

	
 

	
 

	
 

	
(a) The term “Base Year” as hereinafter set forth for the
determination of operating expenses escalation, shall mean the calendar year
2009.

	
 

	
 

	
 

	
(b) The term “The Percentage”, for purposes of computing operating
expense escalation, shall mean 3.2293 percent (3.2293%).

	
 

	
 

	
 

	
(c) The term “the building project” shall mean the aggregate combined
parcel of land more particularly described in Exhibit A-2 attached hereto and
made a part hereof, on a portion of which the building is constructed, and
the building

	
 

	
 

	
 

	
(d) The term “comparative year” shall mean each calendar year
commencing on or after January 1, 2010, in which occurs any part of the term
of this lease.

	
 

	
 

	
 

	
(e) The term “Expenses” shall mean the total of all the costs and
expenses incurred or borne by Landlord with respect to the operation and
maintenance of the building project and the services provided tenants
therein, including, but not limited to, the costs and expenses incurred for
and with respect to: steam and any other fuel; water rates and sewer rents
(except to the extent included in real estate taxes); air-conditioning;
mechanical ventilation; heating; cleaning, by contract or otherwise; window
washing (interior and exterior); elevators, escalators; porter and matron
service; building electric current (building electric current shall be deemed
to mean all electricity purchased for the building, except that the parties
acknowledge and agree that forty percent (40%) of the building’s payment to
the public utility for the purchase of electricity shall be deemed to be
payment for building electric current); protection and security; lobby
decoration; repairs and replacements 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, electrical, plumbing, elevator and any life or property protection
systems (including, without limitation, sprinkler systems), window washing
equipment and snow removal equipment, provided that in case of any
replacements, the same are, in Landlord’s reasonable judgment, economically
prudent to make in lieu of repairs to the replaced item and are not made for
the purposes of enhancing the value of the building (although the fact that
the building is enhanced shall not preclude inclusion as an Expense); and
provided, further, that any such replacement costs that should be treated as
capital expenses by Landlord in accordance with GAAP (as hereinafter defined)
shall only be included in any comparative year (or Base Year, as the case may
be) to the extent of the annual amortization thereon calculated on a
straight-line basis over the useful life of such item determined in accordance
with GAAP together with interest thereon at a rate equal to the prime rate of
the JP Morgan Chase Bank, N.A. (or its successors) at the time of Landlord’s
having incurred said expenditure; maintenance; painting of non-tenant areas;
fire, extended coverage, boiler and machinery, sprinkler, apparatus, public
liability and property damage, rental and plate glass insurance and any
insurance required by a mortgagee or other holder of a Superior Interest (as
hereinafter defined); management fees; supplies, wages, salaries, disability
benefits, pensions, hospitalization, retirement plans and group insurance
respecting employees of

6

	
 

	
 

	
 

	
Landlord up to and including the building manager (including a pro
rata share only of such wages and benefits of employees including Landlord’s
engineer, who are employed at more than one building, such pro rata share
shall be determined by Landlord and shall be based upon Landlord’s reasonable
estimate of the percentage of time spent by such employees at the building project);
uniforms and working clothes for such employees and the cleaning thereof and
expenses imposed pursuant to law or to any collective bargaining agreement
with respect to such employees; worker’s compensation insurance, payroll,
social security, unemployment and other similar taxes with respect to such
employees; contributions to any business improvement district association not
deemed to be real estate taxes, provided same are mandatory under relevant
enabling legislation; and legal, accounting and other fees paid to
professionals and consultants retained by or on behalf of building
management.

	
 

	
 

	
 

	
Provided, however, that the foregoing costs and expenses shall
exclude or have deducted from them, as the case may be and as shall be
appropriate:

	
 

	
 

	
 

	
(1) real estate brokerage and leasing commissions and fees;

	
 

	
 

	
 

	
(2) managing agents’ fees or commissions in excess of the rates then
customarily charged for building management for buildings of like class and
character (provided, however, that if such managing agent is a subsidiary or
affiliate of Landlord, then such managing agent’s fee shall not exceed three
percent (3%) of gross rental revenues of Landlord derived from operation of
the building (excluding management fees and electricity costs);

	
 

	
 

	
 

	
(3) wages, salaries, reimbursable expenses, benefits and other
compensation of any personnel above the grade of building manager, and
Landlord’s general overhead expenses;

	
 

	
 

	
 

	
(4) expenditures for capital improvements, except those required by
law and enacted or first becoming effective after the Commencement Date, in
which event the cost thereof shall be included in Expenses for the year
(whether Base Year or a comparative year) in which the costs are incurred and
subsequent comparative years, amortized on a straight line basis, to the
extent that such items are amortized over the useful life of the item in
question (determined in accordance with generally accepted accounting
practices (“GAAP”)), with an interest factor equal to the prime rate of the
JP Morgan Chase Bank, N.A. (or its successors) at the time of Landlord’s
having incurred said expenditure;

	
 

	
 

	
 

	
(5) amounts received by Landlord through proceeds of insurance to the
extent the proceeds are compensation for expenses which were previously
included in Expenses hereunder;

	
 

	
 

	
 

	
(6) cost of repairs or replacements incurred by reason of fire or
other casualty;

	
 

	
 

	
 

	
(7) legal, accounting or other professional fees incurred in
connection with negotiating, preparing or enforcing leases or lease terms,
amendments of leases,

7

	
 

	
 

	
 

	
terminations of leases or extensions of leases, proceedings against
any tenant (including Tenant) relating to the collection of rent or other
sums due to Landlord from such tenant or any other disputes with any tenant
(including Tenant), other than legal and auditing fees reasonably incurred in
connection with the maintenance and operation of the building or in
connection with the preparation of statements required pursuant to additional
rent or lease escalation provisions;

	
 

	
 

	
 

	
(8) the incremental cost of furnishing services such as overtime HVAC
to any tenant at such tenant’s expense; costs incurred in performing work or
furnishing services for individual tenants (including this Tenant) at such
tenant’s expense; and costs of performing work or furnishing services for
tenants other than this Tenant at Landlord’s expense to the extent that such
work or service is in excess of any work or service Landlord is obligated to
furnish to this Tenant at Landlord’s expense;

	
 

	
 

	
 

	
(9) the costs and expenses incurred or borne by Landlord with respect
to the operation and maintenance of any (i) retail, garage or concession
space in the building project and the services provided tenants therein; and
(ii) the observation deck in the building project (including, without
limitation, any elevators which exclusively service such observation deck);

	
 

	
 

	
 

	
(10) depreciation and amortization of the building;

	
 

	
 

	
 

	
(11) the cost of the design, construction, renovation, redecorating
or other preparation of tenant improvements for Tenant or other tenants or
prospective tenants of the building (including design fees for space planning
and all third party fees and charges, permit, license and inspection fees)
and allowances therefor;

	
 

	
 

	
 

	
(12) advertising and promotional expenses incurred for the purpose of
marketing space in the building or otherwise related to the building project;

	
 

	
 

	
 

	
(13) rent value or rental for any property manager’s offices in the
building;

	
 

	
 

	
 

	
(14) legal costs incurred in connection with the development,
construction, alteration or improvement of the building or the building
project, or legal, auditing, accounting or other professional fees not
allocated to the operation or management of the building project;

	
 

	
 

	
 

	
(15) any rental under any ground or underlying lease;

	
 

	
 

	
 

	
(16) interest, including interest on debt, debt service or
amortization payments on any mortgage encumbering the building or the
building project and any financing and refinancing costs with respect
thereto;

	
 

	
 

	
 

	
(17) repairs or improvements paid for from the proceeds of insurance
(or which would have been paid from the proceeds of insurance required to be
carried by

8

	
 

	
 

	
 

	
Landlord under this lease if Landlord has failed to carry such
insurance, or which would have been paid from the proceeds of insurance, but
for deductibles under policies carried by Landlord under this lease in excess
of those Landlord is permitted to carry under this lease), or paid for
directly by Tenant, any other tenant(s) of the building or any third party;

	
 

	
 

	
 

	
(18) amounts received by Landlord through proceeds of insurance to
the extent they are compensation for sums previously included in Expenses;

	
 

	
 

	
 

	
(19) costs of repairs or replacements incurred by reason of eminent
domain;

	
 

	
 

	
 

	
(20) repairs or improvements made for the benefit solely of tenants
of the building other than Tenant;

	
 

	
 

	
 

	
(21) the cost of any utilities (including, without limitation, water,
electricity, power, gas, sewer, waste disposal, communication and cable T.V.
facilities, heating, cooling, lighting and ventilation) for which Landlord is
entitled to be reimbursed by Tenant pursuant to any other provision of this
lease, or by other tenants of the building pursuant to clauses similar to
this operating expense escalation clause, except for reimbursement of any
“building electric current”;

	
 

	
 

	
 

	
(22) any expense for which Landlord is entitled to be reimbursed by
any tenant (including Tenant) as an additional charge in excess of fixed
annual rent;

	
 

	
 

	
 

	
(23) overhead and profit increment paid to affiliates and
subsidiaries of Landlord for services on or to the building or the building
project or for supplies or other materials, to the extent that the costs of
the services, supplies, or materials exceed the competitive costs of the
services, supplies, or materials were they not provided by an affiliate or
subsidiary of Landlord;

	
 

	
 

	
 

	
(24) costs incurred to test, survey, clean up, contain, encapsulate,
abate, remove, dispose of, or otherwise remedy hazardous wastes or
asbestos-containing materials on, in, at, under or from the building or the
building project;

	
 

	
 

	
 

	
(25) expenses incurred for business interruption or rent abatement
insurance;

	
 

	
 

	
 

	
(26) costs incurred for permanent and temporary works of art and
decorations, including, without limitation, seasonal decorations;

	
 

	
 

	
 

	
(27) real estate taxes;

	
 

	
 

	
 

	
(28) Landlord’s income taxes and franchise, gains or estate taxes
imposed upon the income of Landlord;

	
 

	
 

	
 

	
(29) costs with respect to the creation of a mortgage or a superior
lease or in connection with a sale of the building or the building project,
including, without

9

	
 

	
 

	
 

	
limitation, survey, legal fees and disbursements, transfer taxes or
stamps and appraisals, engineering and inspection reports associated with the
contemplated sale;

	
 

	
 

	
 

	
(30) any costs and compensation paid to clerks, attendants or other
persons in commercial concessions operated by Landlord for a profit;

	
 

	
 

	
 

	
(31) costs incurred with respect to any specialty use or service in
the building which is operated by Landlord and is not available for use by
Tenant or its employees;

	
 

	
 

	
 

	
(32) payment of damages, attorneys’ fees and any other amounts to any
person seeking recovery for negligence or other torts (including any tort
claims relating to asbestos);

	
 

	
 

	
 

	
(33) the cost of any and all repairs, alterations, additions,
improvements or replacements made to rectify, remedy or correct any
structural or other defect in the original design, construction materials,
installations or workmanship of the building;

	
 

	
 

	
 

	
(34) damages and repairs necessitated by the negligence or willful
misconduct of Landlord or Landlord’s employees, contractors or agents;

	
 

	
 

	
 

	
(35) costs incurred due to violations by Landlord, or by any tenant
(including Tenant) in the building, of the terms and conditions of any lease,
and penalties or interest for late payment of any obligation of Landlord
(unless such penalties or interest result from Tenant’s late payment of
rent);

	
 

	
 

	
 

	
(36) Landlord’s general corporate overhead, including, without
limitation, the cost of Landlord’s general corporate accounting and the cost
of preparation of Landlord’s income tax or information returns;

	
 

	
 

	
 

	
(37) any tenant improvement allowance given to any tenant (including
Tenant) whether given by contribution or credit against rent or otherwise,
and any abatements or credits to fixed annual rent or additional rent;

	
 

	
 

	
 

	
(38) any rental concessions to, or lease buy-outs of, Tenant or any
other tenant in the building;

	
 

	
 

	
 

	
(39) any costs expressly to be excluded as Expenses under any other
provision of this lease;

	
 

	
 

	
 

	
(40) the costs, expenses and fees of any asset manager or investment
advisor representing Landlord or any partner or any other constituent member
of Landlord;

10

	
 

	
 

	
 

	
(41) costs arising from Landlord’s charitable or political
contributions and real estate association dues and licensing fees;

	
 

	
 

	
 

	
(42) the cost of future renovations to the building;

	
 

	
 

	
 

	
(43) any amounts payable by Landlord by way of indemnity or for
damages or which constitute a fine, interest, or penalty, including interest
or penalties for any late payments of operating costs;

	
 

	
 

	
 

	
(44) any improvement installed or work performed or any other cost or
expense incurred by Landlord in order to comply with the requirements for the
obtaining or renewal of a certificate of occupancy for the building or any
space therein;

	
 

	
 

	
 

	
(45) expenses attributable to storage space in the building;

	
 

	
 

	
 

	
(46) the cost of overtime or other expense to Landlord in curing its
defaults;

	
 

	
 

	
 

	
(47) the cost of common area compliance with the Americans with
Disabilities Act of 1990, as amended through the date of this lease;

	
 

	
 

	
 

	
(48) the costs associated with converting building systems away from
the use of CFC’s;

	
 

	
 

	
 

	
(49) any fee payable to any operator of a garage facility located in
the building (if any); and

	
 

	
 

	
 

	
(50) costs relating to withdrawal liability or unfunded pension
liability under the Multi-Employer Pension Plan Act or similar law.

	
 

	
 

	
 

	
Expenses shall be net only and for that purpose shall be deemed
reduced by the amount of all reimbursements, recoupments, payments,
discounts, credits, reductions, allowances or the like actually received by
Landlord in connection with Expenses; provided, however, that Landlord may
include in Expenses the reasonable and actual costs and expenses, if any,
incurred by Landlord in obtaining such reimbursements, recoupments, payments,
discounts, credits, reductions, allowances or the like.

	
 

	
 

	
 

	
Notwithstanding anything heretofore set forth to the contrary, if
Landlord shall purchase any item of capital equipment or make any capital
expenditure designed to result in savings or reductions in Expenses, then the
costs for same shall be included in Expenses, but only to the extent of
Landlord’s reasonable, good faith estimate of the amount of actual savings or
reductions in Expenses. The costs of such capital equipment or such capital
expenditures to be included in Expenses for the comparative year (or Base
Year, as the case may be) in which the costs are incurred and subsequent
comparative years, on a straight line basis, to the extent that such items
are amortized over such period of time as reasonably can be

11

	
 

	
 

	
 

	
estimated as the time in which such savings or reductions in Expenses
are expected to equal Landlord’s costs for such capital equipment or capital
expenditure, with an interest factor equal to the prime rate of the JP Morgan
Chase Bank, N.A. (or its successors) at the time of Landlord’s having
incurred said costs. If Landlord shall lease any such item of capital
equipment designed to result in savings or reductions in Expenses, then the
rentals and other costs paid pursuant to such leasing shall be included in
Expenses for the comparative year (or Base Year, as the case may be) in which
they were incurred, but only to the extent of Landlord’s reasonable, good
faith estimate of the amount of actual savings or reductions in Expenses. If
during all or part of the Base Year or of any comparative year, Landlord
shall not furnish any particular item(s) of work or service (which would constitute
an Expense hereunder) to portions of the building project due to the fact
that such portions are not occupied or leased, or because such item of work
or service is not required or desired by the tenant of such portion, or such
tenant is itself obtaining and providing such item of work or service, or for
other reasons, then, for the purposes of computing the additional rent
payable hereunder, the amount of the Expenses for such item for such period
shall be increased by an amount equal to the additional operating and
maintenance expenses which would reasonably have been incurred during such
period by Landlord if it had at its own expense furnished such item of work
or services to such portion of the building project.

	
 

	
 

	
 

	
(f) The “Escalation Statement” shall mean a statement in writing
signed by Landlord, setting forth the amount payable by Tenant for a
specified comparative year) pursuant to paragraph (iv) below, substantially
in the form attached hereto and made a part hereof as Exhibit F.

          (ii)
Payment: If the Expenses for any comparative year shall be greater than the
Expenses for the Base Year, Tenant shall pay to Landlord, as additional rent
for such comparative year, in the manner hereinafter provided, an amount equal
to The Percentage of the excess of the Expenses for such comparative year over
the Expenses for the Base Year (such amount being hereinafter called the
“Expense Payment”). The first payment of additional rent for the entire first
comparative year shall be payable within thirty (30) days after the Escalation
Statement therefor is delivered to Tenant. Commencing on the first day of the
first comparative year and thereafter, all monthly installments of rental shall
reflect one-twelfth (1/12th) of the then current annual amount of such
adjustment for Expenses on account of the next ensuing comparative year and
such amount shall be payable until a new adjustment becomes effective pursuant
to the provisions of this paragraph. Within thirty (30) days after the
rendering of the next Escalation Statement, Tenant shall pay to Landlord on
account of additional rent for the comparative year to which such Expense
Statement relates, an amount equal to the excess of additional rent due on
account of increases in Expenses over the amount collected on account thereof
during the preceding year. If there shall have been a reduction in the Expenses
during any ensuing comparative year, the excess of the amount collected by
Landlord over the amount paid on account of such comparative year shall be credited
against amounts payable by Tenant for the current comparative year (or if the
term hereof shall have expired on its stated expiration date, promptly refunded
to Tenant). If any Escalation Statement is furnished to Tenant after the
commencement of such comparative year, there also shall within thirty (30) days
be paid by

12

Tenant to Landlord an amount equal to the portion of such monthly
adjustments allocable to the part of such comparative year which shall have
lapsed prior to the first day of the calendar month next succeeding the
calendar month in which said Escalation Statement is furnished to Tenant. The
aforesaid monthly payments based on the total Expense Payment for the preceding
calendar year or comparative year, as the case may be, shall be adjusted (but
no more than twice per comparative year) to reflect, if Landlord can reasonably
so estimate, known increases in rates or costs, for the current comparative
year, applicable to the categories involved in computing Expenses, whenever
such increases become known prior to or during such current comparative year.
Notwithstanding anything contained herein to the contrary, if Landlord fails to
substantially complete Landlord’s Work on or before the First Outside Date,
then Tenant’s obligation to commence payment of operating expense escalation
additional rent hereunder shall be extended beyond the first day of the first
comparative year by one day for each day after the First Outside Date that
Landlord fails to substantially complete Landlord’s Work.

          (iii)
Calculation: Following the expiration of the Base Year and each comparative
year and after receipt of necessary information and computations from
Landlord’s certified public accountant, Landlord shall submit to Tenant an
Escalation Statement, as hereinafter described, setting forth the Expenses for
the preceding comparative year, the Expenses for the Base Year, and the Expense
Payment, if any, due to Landlord from Tenant for such comparative year under
this paragraph.

          (iv)
Escalation Statements/Audits: The statements of the Expenses to be furnished by
Landlord as provided above shall be based on information and computations made
for Landlord (in accordance with GAAP) by a certified public accountant (who
may be the accountant now or then employed by Landlord for the audit of its
accounts); said certified public accountant may rely on Landlord’s reasonable
allocations and estimates wherever operating cost allocations or estimates are
needed for this Article. The statements thus furnished to Tenant shall
constitute a final determination as between Landlord and Tenant of the Expenses
for the periods represented thereby, unless (a) within two hundred seventy
(270) days after they are furnished (time being of the essence), Tenant shall give
a notice (“Audit Notice”) to Landlord that Tenant wishes to examine Landlord’s
relevant books and records with respect thereto, and (b) within sixty (60) days
after the completion of any such examination of Landlord’s relevant books and
records (time being of the essence), Tenant shall give a notice (“Dispute
Notice”) to Landlord that it disputes the accuracy or appropriateness of the
statement which is the subject to such examination, which notice shall specify
the particular respects in which such statement is inaccurate or inappropriate.
Notwithstanding the foregoing, Tenant may audit and dispute the Base Year at
the same time it disputes or audits the first comparative year. Pending the
resolution of any such audit and dispute, Tenant shall pay the additional rent
to Landlord in accordance with the statements furnished by Landlord (without
prejudice as to any such dispute). After payment of said additional rent,
Tenant shall have the right, during regular business hours, to examine
Landlord’s relevant books and records with respect to the foregoing, provided
such examination is commenced within forty-five (45) days after the giving of
an Audit Notice, Landlord agrees that it shall permit such audit to begin
within such time period, and Tenant agrees that such audit shall be concluded
within a reasonable period of time thereafter (it being agreed that Tenant
shall cause such examination to be performed in a prompt and diligent manner,
subject to Landlord’s compliance with the following sentence). Landlord shall
reasonably cooperate with Tenant in connection with any such examination,
including, without

13

limitation, by making such relevant books and records available to
Tenant in a reasonably convenient location in the Borough of Manhattan (which
may include the management office in the building), and by providing reasonable
continuous access to such relevant books and records during the course of such
examination. Such right to examine Landlord’s relevant books and records shall
survive the expiration or sooner termination of the term of this lease. Tenant
shall keep such examination and arbitration relating to the dispute (as
hereinafter described in subparagraph (v)) in strict confidence (except if
disclosure is required by law or pursuant to legal proceedings, or is to
Tenant’s professional advisors, or is necessary in connection with a sale of
the Tenant’s business, or in pursuit of a claim against Landlord or Tenant), it
being agreed that Tenant’s failure to do so shall be deemed a substantial and material
default by Tenant under the terms of this lease, for which Landlord shall have
all remedies available to it under this lease and under the law. If it is
determined that the Expenses reported by Landlord are in excess of one hundred
five percent (105%) of the actual amount of Expenses, then if (1) Landlord
fails to dispute such finding, or (2) Landlord agrees with such finding, or (3)
following a dispute of Tenant’s examination by Landlord the reconciled audits
still evidence that Tenant was overcharged by more than five percent (5%) as
set forth above, or (4) in the arbitration referenced to in Article 41 it is
determined that Tenant was overcharged by more than five percent (5%) as set
forth above, then Tenant’s reasonable actual costs of said audit shall be
payable by Landlord within thirty (30) days of demand. In no event may Tenant
employ any person or entity whose compensation wholly or partially is
calculated upon a percentage of any Expenses deemed to be incorrectly included
in making Landlord’s calculation of additional rent under this paragraph or any
percentage of savings realized by Tenant by reason of disputing Landlord’s
calculation of such additional rent; except, however, that Tenant may retain
any of the following firms on such a contingency fee basis: Deloitte &
Touche, LLP, BDO Seidman, LLP and KBA Lease Services or any of their successors
by operation of law and any other firm that Landlord may approve, which
approval shall not be unreasonably withheld, conditioned or delayed.

          (v) Any
such dispute under this paragraph B shall be resolved by arbitration in
accordance with Article 41 hereof. All audit and dispute rights of Tenant set
forth herein shall survive the expiration or earlier termination of the term of
this lease for a period of two hundred seventy (270) days after the date Tenant
receives the Escalation Statement for the last comparative year (or partial
comparative year) during the term hereof.

          (vi)
Notwithstanding anything contained herein to the contrary, if Landlord incurs
in any comparative year any cost or expense which comprises an entirely new
category or subcategory of Expenses which was not included in the Expenses for
the Base Year (a “New Category of Expenses”), then Landlord may add to all
comparative years the actual costs incurred by Landlord attributable to such
New Category of Expenses, but Landlord shall also add to the Expenses for the
Base Year the annualized amount that Landlord initially incurs for the New
Category of Expenses in the first comparative year in which Landlord includes
the New Category of Expenses in computing Tenant’s Expense Payment. If
thereafter in any comparative year Landlord no longer includes in Expenses such
New Category of Expenses, then the costs so added to the Base Year shall be
deducted from the Base Year in computing Tenant’s Expense Payment for such
comparative year.

14

          (vii)
Any delay or failure of Landlord in billing any Expense escalation hereinabove
provided, for a period of more than eighteen (18) months after the comparative
year in question, shall constitute a waiver of such tax escalation, but shall
not constitute a waiver of or in any way impair the continuing obligation of
Tenant to pay any other Expense escalation hereunder.

          C.
Tax
Escalation. Tenant shall pay to Landlord, as additional rent, tax
escalation in accordance with this paragraph C:

	
 

	
 

	
 

	
 

	
(i)

	
Definitions: For the purpose of this
Article, the following definitions shall apply:

	
 

	
 

	
 

	
 

	
 

	
(a) The term “base tax year” as hereinafter
set forth for the determination of real estate tax escalation, shall mean the
New York City real estate tax year commencing July 1, 2008 and ending June
30, 2009.

	
 

	
 

	
 

	
 

	
 

	
(b) The term “The Percentage”, for purposes
of computing tax escalation, shall mean 3.2293 percent (3.2293%).

	
 

	
 

	
 

	
 

	
 

	
(c) The term “the building project” shall
mean the aggregate combined parcel of land on a portion on which the building
is constructed and the building.

	
 

	
 

	
 

	
 

	
 

	
(d) The term “comparative year” shall mean
the twelve (12) months following the base tax year, and each subsequent
period of twelve (12) months (or such other period of twelve (12) months
occurring during the term of this lease as hereafter may be duly adopted as
the tax year for real estate tax purposes by the City of New York).

	
 

	
 

	
 

	
 

	
 

	
(e) The term “real estate taxes” shall mean
the total of all taxes and special or other assessments levied, assessed or
imposed at any time by any governmental authority upon or against the
building project, any tax or assessment levied, assessed or imposed at any
time by any governmental authority in connection with the receipt of income
or rents from said building project to the extent that same shall be in lieu
of all or a portion of any of the aforesaid taxes or assessments, or
additions or increases thereof, upon or against said building project, any
assessment by a business improvement district (BID), and all costs incurred
by Landlord to contest any assessment of the building project or any tax,
charge or other imposition levied against it during the term hereof. In no
event shall any franchise, income, transit, profit, excise, transfer or other
similar tax or governmental imposition be deemed to be included within the
definition of “real estate taxes” for the purposes hereof unless, due to a
future change in the method of taxation or in the taxing authority, or for
any other reason, such franchise, income, transit, profit, excise, transfer
or other similar tax or governmental imposition, however designated, shall be
levied against Landlord in substitution in whole or in part for the real
estate taxes, or in lieu of additions to or increases of said real estate
taxes. Additionally, in no event shall “real estate taxes” include any
interest or penalty payable by Landlord on account of its failure to pay real
estate taxes on a timely basis. As to special assessments which are payable
over a period of time extending beyond the term of this lease, only a pro
rata portion

15

	
 

	
 

	
 

	
 

	
 

	
thereof covering the portion of the term of
this lease unexpired at the time of the imposition of such assessment, shall
be included in “real estate taxes.” If by law, any assessment may be paid in
installments, then, for the purposes hereof (a) such assessment shall be
deemed to have been payable in the maximum number of installments permitted
by law and (b) there shall be included in real estate taxes, for each comparative
year in which such installments may be paid (and for the base tax year, if
applicable), the installments of such assessment so becoming payable during
such comparative year (or base tax year), together with interest payable
during such comparative year.

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

	
(g) The phrase “real estate taxes payable
during the base tax year” shall mean the real estate taxes payable for the
base tax year.

	
 

	
 

	
 

	
 

	
(ii)

	
(a) Before or after the start of each
comparative year, Landlord shall furnish to Tenant a statement of the real
estate taxes payable for such comparative year, and a statement of the real
estate taxes payable during the base tax year (together with copies of the
relevant tax bills for such comparative year and the base tax year). Subject
to subparagraph (f) below, if the real estate taxes payable for such
comparative year exceed the real estate taxes payable for the base tax year,
additional rent for such comparative year, in an amount equal to The
Percentage of the excess, shall be due from Tenant to Landlord, and such
additional rent shall be payable by Tenant to Landlord as follows: After
Landlord has furnished Tenant with the aforesaid statement, Tenant shall pay
Landlord, together with the monthly installments of fixed annual rent due on
June 1 and December 1 of each such comparative year, an amount equal to
one-half (1/2) of the total sum of the tax escalation additional rent due
from Tenant to Landlord pursuant to such statement for such comparative year.
If, during the term of this lease, any such taxes are required by the taxing
authority or by a mortgagee’s tax escrow requirements, to be paid in full or
in quarterly or other installments, on any other date or dates than as
presently required, then Tenant’s tax escalation payment(s) shall be
correspondingly accelerated so that said payments are due at least thirty
(30) days prior to the date proportionate payments are due to the taxing
authority or the mortgagee. If a statement is furnished to Tenant after the
commencement of the comparative year in respect of which such statement is
rendered, Tenant shall, within thirty (30) days thereafter, pay to Landlord
an amount equal to those installments or the total tax escalation payable as
provided in the preceding sentence during the period prior to the first day
of the month next succeeding the month in which the applicable statement has
been furnished. The benefit of any discount for any earlier payment or
prepayment of real estate taxes shall accrue solely to the benefit of
Landlord, and such discount shall not be subtracted from the real estate
taxes payable for any comparative year. Notwithstanding anything

16

	
 

	
 

	
 

	
 

	
 

	
contained herein to the contrary, if
Landlord fails to substantially complete Landlord’s Work on or before the
First Outside Date, then Tenant’s obligation to commence payment of real
estate tax escalation additional rent hereunder shall be extended beyond the
first day of the first comparative year by one day for each day after the
First Outside Date that Landlord fails to substantially complete Landlord’s
Work.

	
 

	
 

	
 

	
 

	
 

	
(b) Should the real estate taxes payable
during the base tax year be reduced by final determination of legal
proceedings, settlement or otherwise, then, the real estate taxes payable
during the base tax year shall be correspondingly revised, the additional
rent theretofore paid or payable hereunder for all comparative years shall be
recomputed on the basis of such reduction, and Tenant shall pay to Landlord
as additional rent, within thirty (30) days after being billed therefor, any
deficiency between the amount of such additional rent as theretofore computed
and the amount thereof due as the result of such recomputations. Should the
real estate taxes payable during the base tax year be increased by such final
determination of legal proceedings, settlement or otherwise, then appropriate
recomputation and adjustment also shall be made.

	
 

	
 

	
 

	
 

	
 

	
(c) If Tenant shall have made a payment of
additional rent under this paragraph and Landlord shall receive a refund of
any portion of the real estate taxes payable for any comparative year after
the base tax year on which such payment of additional rent shall have been
based, as a result of a reduction of such real estate taxes by final
determination of legal proceedings, settlement or otherwise, Landlord shall
promptly after receiving the refund credit to Tenant The Percentage of the
refund less The Percentage of expenses (including reasonable attorneys’ and
appraisers’ fees) incurred by Landlord in connection with any such
application or proceeding. If prior to the payment of taxes for any
comparative year, Landlord shall have obtained a reduction of that comparative
year’s assessed valuation of the building project, and therefore of said
taxes, then the term “real estate taxes” for that comparative year shall be
deemed to include the amount of Landlord’s expenses in obtaining such
reduction in assessed valuation, including reasonable attorneys’ and
appraisers’ fees.

	
 

	
 

	
 

	
 

	
 

	
(d) The statement of the real estate taxes
to be furnished by Landlord as provided above shall be certified by Landlord
and shall constitute a final determination as between Landlord and Tenant of
the real estate taxes for the periods represented thereby, unless Tenant
within one hundred twenty (120) days after they are furnished shall give a
written notice to Landlord that it disputes their accuracy or their
appropriateness, which notice shall specify the particular respects in which
the statement is inaccurate or inappropriate. If Tenant shall so dispute said
statement then, pending the resolution of such dispute, Tenant shall pay the
additional rent to Landlord in accordance with the statement furnished by
Landlord.

	
 

	
 

	
 

	
 

	
 

	
(e) Any delay or failure of Landlord in
billing any tax escalation hereinabove provided, for a period of more than
eighteen (18) months after the underlying real

17

	
 

	
 

	
 

	
 

	
 

	
estate taxes are due and have been billed
by the applicable taxing authority, shall constitute a waiver of such tax
escalation, but shall not constitute a waiver of or in any way impair the
continuing obligation of Tenant to pay any other tax escalation hereunder.

	
 

	
 

	
 

	
 

	
 

	
(f) ICIP/Building Improvement Program.
Landlord has applied for benefits under the New York City Industrial
Commercial Incentive Program (“ICIP”) in connection with the Building
Improvement Program (as hereinafter defined in Article 23D). If an abatement
in real estate taxes has been granted for the building project for the base
tax year by exempting from taxation any portion of a physical assessment
pursuant to the ICIP, then when, as and if the abatement is reduced, the
amount of real estate taxes that would have been paid (at the tax rate in
effect for the base tax year) during the base tax year on that portion of the
physical assessment then no longer subject to the ICIP abatement shall be
added to the real estate taxes payable in the base tax year. If an ICIP
abatement is not granted with respect to the base tax year, then that portion
of the real estate taxes payable for the building project for the base tax
year and any comparative year due solely by reason of the Building
Improvement Program shall be excluded from the real estate taxes for such
years when calculating the real estate tax escalation additional rent payable
hereunder. In the event of a dispute regarding the provisions of this
subparagraph (f), (1) such dispute shall be resolved by arbitration in
accordance with the provisions of Article 41 of this lease (provided that the
standard to be applied in such arbitration is the correct application of New
York law with respect to this matter); and (2) pending the resolution of such
dispute, Tenant shall pay Landlord real estate tax escalation additional rent
hereunder in accordance with Landlord’s determination of the amounts due, but
without prejudice to Tenant’s position in such dispute. If, upon resolution
of such dispute, it is determined that Tenant overpaid the amount of any real
estate tax escalation additional rent actually due hereunder, then the amount
of such overpayment shall be promptly refunded to Tenant with interest
thereon at the Applicable Rate from the date of such overpayment.

	
 

	
 

	
 

	
          D. Failure
to Bill: Except as otherwise set forth above, Landlord’s failure
to bill or tender any escalation statement or any other statement or any
delay in billing or tendering any such escalation statement or other
statement for all or any portion of any amount otherwise payable pursuant to
this lease shall not constitute a waiver of Landlord’s rights to bill Tenant
at any subsequent time (during or subsequent to the term of this lease)
retroactively for the entire amount so unbilled (which previously unbilled
amount shall be payable within thirty (30) days after demand therefor) and to
collect any such amount. Except as otherwise set forth above, Tenant’s
obligation to pay any fixed annual rent and additional rent shall survive the
expiration or earlier termination of this lease.

	
 

	
          E.
Intentionally Deleted.

	
 

	
          F. No
Reduction in Fixed Annual Rent: In no event shall the fixed annual
rent under this lease be reduced by virtue of any decrease in the amount of
any additional rent payment under this Article or any other provision of this
lease. If Landlord receives from Tenant

18

any payment less than the sum
of the fixed annual rent and additional rent then due and owing pursuant to
this lease, Tenant hereby waives its right, if any, to designate the items to
which such payment shall be applied and agrees that Landlord in its sole
discretion may apply such payment in whole or in part to any fixed annual rent,
additional rent or to any combination thereof then due and payable hereunder.
Unless Landlord shall otherwise expressly agree in writing, acceptance of any
portion of the fixed annual rent or additional rent from anyone other than
Tenant shall not relieve Tenant of any of its other obligations under this
lease, including the obligation to pay other fixed annual rent and additional
rent, and Landlord shall have the right at any time, upon notice to Tenant, to
require Tenant (rather than someone other than Tenant) to pay the fixed annual
rent and additional rent payable hereunder directly to Landlord. Furthermore,
such acceptance of fixed annual rent and additional rent shall not be deemed to
constitute Landlord’s consent to an assignment of this lease or a subletting or
other occupancy of the demised premises by anyone other than Tenant, nor a
waiver of any of Landlord’s rights or Tenant’s obligations under this lease.

          G. Partial
Comparative Year: If the Rent Commencement Date shall occur after
the first day of the first comparative year, then the additional rent due under
any paragraph of this Article for the first comparative year (as defined in the
relevant paragraph) shall be a proportionate share of said additional rent for
the entire comparative year, said proportionate share to be based upon the
length of time that the lease term will be in existence during such first
comparative year. Upon the date of any expiration or termination of this lease
(except termination because of Tenant’s default) whether the same be the date
herein above set forth for the expiration of the term or any prior or subsequent
date, a proportionate share of said additional rent for such comparative year
during which such expiration or termination occurs shall immediately become due
and payable by Tenant to Landlord, if it was not theretofore already billed and
paid. The said proportionate share shall be based upon the length of time that
this lease shall have been in existence during such comparative year. Landlord
shall, as soon as reasonably practicable, compute the additional rent due from
Tenant, as aforesaid, which computations shall either be based on that
comparative year’s actual figures or be an estimate based upon the most recent
statements theretofore prepared by Landlord and furnished to Tenant as may be
required under any paragraph in this Article. If an estimate is used, then
Landlord shall cause statements to be prepared on the basis of the comparative
year’s actual figures promptly after they are available, and thereupon,
Landlord and Tenant shall make appropriate adjustments of any estimated
payments theretofore made.

          H. Survival of
Obligations: Except as otherwise set forth above, Landlord and
Tenant’s obligation to make the adjustments and payments referred to in the
proceeding paragraphs of this Article shall survive any expiration or termination
of this lease.

          I. No Waiver: Except as otherwise
set forth above, any delay or failure of Landlord in billing any cost of living
adjustment, operating expense escalation or tax escalation hereinabove provided
shall not constitute a waiver of or in any way impair the continuing obligation
of Tenant to pay the same hereunder.

3. ELECTRICITY

          Subject
to the provisions of subparagraph C(ii) of this Article, Landlord shall furnish

19

electricity to Tenant during
the term of this lease on a submetering basis. Electricity and electric
service, as used herein, shall mean any element affecting the generation,
transmission, and/or distribution or redistribution of electricity, including
but not limited to services which facilitate the distribution of service.

          A.
Submetering: If and so long as Landlord provides electricity to the
demised premises on a submetering basis, Tenant covenants and agrees to
purchase the same from Landlord or Landlord’s designated agent at Landlord’s
Cost (as hereinafter defined), plus six percent (6%) thereof. Where more than
one meter measures the service of Tenant in the Building, the KWHR and KW
recorded by each meter shall be added, and the aggregate billed as if billed
from a single meter. Bills therefor shall be rendered at such times as Landlord
may elect, but not more frequently than monthly, and the amount, as computed
from a meter or meters and determined by Landlord’s electrical consultant in
accordance with this Article, shall be deemed to be, and be paid as, additional
rent.

                    (i)
“Landlord’s Cost” for such redistributed electricity shall be equal to
Landlord’s Cost Rates (as hereinafter defined) for the relevant billing period
multiplied by Tenant’s electricity consumption (i.e., energy and demand) based
on the aforedescribed meter readings as herein provided.

	
 

	
 

	
 

	
“Landlord’s Cost Rates” shall be determined
as follows:

	
 

	
 

	
 

	
“Landlord’s Electricity Consumption Cost”
(Landlord’s cost per KWHR) for any given Utility Billing Period, shall mean
the amount arrived at by dividing (a) Landlord’s KWHR cost, as indicated on
the applicable utility bill (inclusive of any taxes, including any taxes
included in the computation of said utility bill) for Landlord’s Electricity
Consumption for said Utility Billing Period, inclusive of any fuel
adjustments or rate adjustments contained in said utility bill allocable to
Landlord’s Electricity Consumption, by (b) Landlord’s Electricity Consumption
as indicated on said bill.

	
 

	
 

	
 

	
“Landlord’s Electricity Demand Cost”
(Landlord’s Cost per KW) for any given Utility Billing Period, shall mean the
amount arrived at by dividing (a) Landlord’s KW cost, as indicated on the
applicable utility bill (inclusive of any taxes, including any taxes included
in the computation of said utility bill) for Landlord’s Electricity Demand
for said Utility Billing Period, inclusive of any rate adjustments contained
in said utility bill allocable to Landlord’s Electricity Demand (provided
that same have not been included in the computation of Landlord’s Electricity
Consumption Cost), by (b) Landlord’s Electricity Demand as indicated on said
bill.

	
 

	
 

	
 

	
For purposes of determining Landlord’s
Electricity Consumption Cost and Landlord’s Electricity Demand Cost, (a) each
amount appearing on any utility bill for demand, energy, fuel or rate
adjustments shall be taken into account (where it cannot be determined from
the utility bill whether such amount relates to consumption or to demand, it
shall be deemed to relate to demand) and (b) there shall be added to
Landlord’s Cost a sum equal to Landlord’s fees paid to the

20

	
 

	
 

	
 

	
electrical consultant and Landlord’s
overhead, in connection with billing and computing electricity charges for
Tenant.

	
 

	
 

	
 

	
It is anticipated that electric rates,
charges, etc. may be changed by virtue of changes in methods of billing,
and/or electricity purchases and the redistribution thereof, fluctuations in
the market price of electricity, changes in electricity and electric service
(as defined below), and by the obtaining of electricity from public utilities
and/or other providers in addition to, or instead of, Consolidated Edison of
New York. Accordingly, Landlord’s Cost Rates shall also include Landlord’s
payments for electricity or electric service, for the applicable monthly or
other period, to utilities and/or other providers. Any such portions of
Landlord’s Cost Rates for the Utility Billing Period, or other billing
period, shall be equitably allocated to, and included in, this Tenant’s share
of Landlord’s Cost for electricity redistributed to Tenant.

	
 

	
 

	
 

	
For purposes of this Article, the following
terms shall have the following meanings:

	
 

	
 

	
 

	
“Utility Billing Period” shall mean the
respective period(s) of electricity consumption and demand for which Landlord
is charged on each successive bill from the utility company or companies, or
other providers, furnishing electricity to the building.

	
 

	
 

	
 

	
“Landlord’s Electricity Consumption,” for
any given Utility Billing Period, shall mean the number of kilowatt-hours of
electricity consumed in and for the building (including common areas,
tenantable areas and mechanical areas) during said Utility Billing Period, as
indicated on the applicable utility bill(s).

	
 

	
 

	
 

	
“Landlord’s Electricity Demand,” for any
given Utility Billing Period, shall mean the number of kilowatts of
electricity demanded in and for the building (including common areas,
tenantable areas and mechanical areas) during said Utility Billing Period, as
indicated on the applicable utility bill(s).

	
 

	
 

	
 

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

                    (ii)
The parties acknowledge that the demised premises are not presently submetered.
It is agreed that Landlord, at its expense and as part of Landlord’s Work, will
install a submeter or submeters and any and all wiring and other equipment which
is proper and necessary to furnish redistributed electricity to the demised
premises on a submetering basis.

          B. Rent
Inclusion: (i) If the requirements of law change so that Landlord
may not legally furnish electricity to Tenant on a submetering basis, then and
only in such event, Landlord reserves the right, at any time upon thirty (30)
days’ written notice to Tenant, to change its furnishing of electricity to
Tenant from a submetering basis to a rent inclusion basis. If and so long as
Landlord provides electricity to the demised premises on a rent inclusion
basis, Tenant

21

agrees that the fixed annual
rent shall be increased by the amount of the Electricity Rent Inclusion Factor
(“ERIF”), as hereinafter defined, to compensate Landlord as hereinafter
provided, for its obtaining and making available to Tenant the redistribution
of electric current as an additional service, for Tenant’s reasonable use of
air conditioning equipment, kitchen and small appliances, ordinary lighting and
office equipment, during ordinary business hours. The “ERIF” shall be the
amount determined by applying the reasonably estimated electrical load of
Tenant, which shall be deemed to be the demand (KW) (which shall reflect a
proper diversity factor), and hours of use thereof, which shall be deemed to be
the energy (KWH), as determined by the electrical consultant as hereinafter
provided, to the average rate charged for such load and energy usage in the
SC-4, Rate I Service Classification in effect for the twelve (12) month period
ending April 1, 2000 (and not the time-of-day schedule, if any).

                    (ii)
The parties acknowledge that the fixed annual rent hereinabove set forth has
not yet been, but may be, increased by the ERIF. Tenant, therefore, agrees to
have the fixed annual rent hereinabove set forth so increased by an ERIF of
$3.00 per rentable square foot, to be paid in equal monthly installments, in
advance from the date when Landlord commenced to furnish electricity to Tenant
on a rent inclusion basis.

                    (iii)
If the cost to Landlord of electricity shall have been, or shall be, increased
or decreased subsequent to April 1, 2000 (whether such change occurs prior to
or during the term of this Lease), by change in Landlord’s electric rates or
service classifications, or electricity charges, including changes in market
prices, for by any increase or decrease, subsequent to the last such electric
rate or service classification change or market price change, in fuel
adjustments or charges of any kind, or by taxes, imposed on Landlord’s
electricity purchases, or on Landlord’s electricity redistribution, or for any
other such reason, then the aforesaid ERIF portion of the fixed annual rent
shall be increased by the actual amount of the increase in cost due to changes
in electric rates or service classifications or market prices, and, also
Tenant’s payment obligation, for electricity redistribution, shall change from
time to time so as to reflect any such increase or decrease in fuel adjustments
or charges, and such taxes. Any such change in Landlord’s cost due to change in
Landlord’s electric rates or service classifications or market prices, shall be
computed on the basis of the average consumption of electricity for the
building for the twelve full months immediately prior to the rate change or
other such changes in cost, energy and demand, and any changed methods of or
rules on billing for same, applied on a consistent basis to the new electric
rate or service classification or market price and to the immediately prior
existing electric rate or service classification or market price. If the
average consumption (energy and demand) for the entire building for said prior
(12) months cannot reasonably be applied and used with respect to changed methods
of or rules on billing, then the increase or decrease shall be computed by the
use of the average consumption (energy and demand) for the entire building for
the first three (3) months after such change, projected to a full twelve (12)
months, so as to reflect the different seasons; and that same consumption, so
projected, shall be applied to the rate and/or service classification or market
price which existed immediately prior to the change. The parties agree that a
reputable, independent electrical consultant firm, selected by Landlord
(“Landlord’s consultant”), may from time to time make surveys in the demised
premises covering the electrical equipment and fixtures and use of current
therein. If such survey shall disclose a change in Tenant’s electrical load
(reflecting a proper diversity factor for demand) or hours of energy use, then
the electrical load and energy usage portion of the ERIF shall be changed in
accordance with such survey, and the ERIF redetermined, accordingly, by
Landlord’s consultant.

22

The fixed annual rent shall be
appropriately adjusted effective as of the date of said survey. In no event,
whether because of surveys, rate changes or for any other reason, is the ERIF
to be less than the originally specified $3.00 per rentable square foot per
annum.

                    (iv)
The survey determinations by Landlord’s electrical consultant shall be binding
and conclusive on Landlord and Tenant from and after the delivery of copies of
such determinations to Landlord and Tenant, unless, within sixty (60) days
after delivery thereof, Tenant disputes such determination. If Tenant so
disputes such determination, it shall, at its own expense, obtain from a
reputable, independent electrical consultant its own determinations in
accordance with the provisions of this Article. Tenant’s consultant and
Landlord’s consultant then shall seek to agree. If they cannot agree within
thirty (30) days they shall choose a third reputable electrical consultant,
whose cost shall be shared equally by the parties, to make similar
determinations which shall be controlling. (If they cannot agree on such third
consultant within ten (10) days, than either party may apply to the Supreme
Court in the County of New York for such appointment.) However, pending such controlling
determinations, Tenant shall pay to Landlord the amount of additional rent or
ERIF in accordance with the determinations of Landlord’s electrical consultant.
If the controlling determinations differ from Landlord’s electrical consultant,
then the parties shall promptly make adjustment (by rent credit or payment) for
any deficiency owed by Tenant or overage paid by Tenant.

          C. General
Conditions: (i) At the option of Tenant, Tenant may purchase from
Landlord or its agents all lamps and bulbs used in the demised premises and pay
for the cost of installation thereof, at building standard charges. If all or
part of the submetering additional rent or the ERIF payable in accordance with
paragraph A or B of this Article becomes uncollectible or reduced or refunded
by virtue of any law, order or regulation, the parties agree that, at
Landlord’s option, in lieu of submetering additional rent or ERIF, and in
consideration of Tenant’s use of the building’s electrical distribution system
and receipt of redistributed electricity and payment by Landlord of
consultant’s fees and other redistribution costs, the fixed annual rental
rate(s) to be paid under this lease shall be increased by an “alternative
charge” which shall be a sum equal to $3.00 per year per rentable square foot
of the demised premises, changed in the same percentage as any increases and
decreases in the cost to Landlord for electricity for the entire building
subsequent to April 1, 2000 (but in no event below said $3.00 per year per rentable
square foot), because of electric rate or service classification or market
price changes, such percentage change to be computed as in paragraph B
provided.

          (ii)
Except for its negligence or willful misconduct, Landlord shall not be liable
to Tenant for any loss or damage or expense which Tenant may sustain or incur
if either the quantity or character of electric service is changed or is no
longer available or suitable for Tenant’s requirements. Landlord agrees to
provide Tenant with an electrical capacity of six (6) watts per rentable square
foot of demand load, for all purposes other than any building air-conditioning
systems and equipment servicing the demised premises, through the electrical
distribution panels described in subparagraph B(iv) of Article 23 hereof.
Tenant covenants and agrees that at all times its use of electric current shall
never exceed such six (6) watts per rentable square foot of demand load. Tenant
agrees not to connect any additional electrical equipment to the building
electric distribution system, other than lamps, typewriters, personal
computers, printers, servers, scanners, fax machines, duplicating machines,
small kitchen appliances and other office machines which consume comparable
amounts of electricity, without Landlord’s

23

prior written consent, which
consent shall not be unreasonably withheld, conditioned or delayed. Nothing
herein shall be deemed to obligate Landlord to furnish Tenant with electricity
in excess of six (6) watts per rentable square foot of demand load. However, it
is agreed that Tenant shall pay Landlord a riser connection fee of $150 per amp
per phase (based on a service of 208 volts, 3 phase) for any additional
electrical capacity which Landlord, at Tenant’s request (and subject to the provisions
of this Article 3), makes available to Tenant during the term hereof, which fee
shall be deemed additional rent under this lease and shall be payable within
thirty (30) days after demand (and which fee shall be subject to increase, from
time to time, during the term hereof). Any such additional electric service
which Landlord makes available to Tenant (at Tenant’s request) shall be in a
location designated by Landlord. Any riser or risers to supply such additional
electrical requirements of Tenant, upon written request of Tenant, 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 demised premises or cause or
create a dangerous or hazardous condition or entail excessive or unreasonable
alterations, repairs or expense or interfere with or disturb other tenants or
occupants. In addition to the installation of such riser or risers, Landlord
will also at the sole cost and expense of Tenant, install all other equipment
proper and necessary in connection therewith subject to the aforesaid terms and
conditions. The parties acknowledge that they understand that it is anticipated
that electric rates, charges, etc., may be changed by virtue of time-of-day
rates or other methods of billing, electricity purchases and the redistribution
thereof, and that the references in the foregoing paragraphs to changes in
methods of or rules on billing are intended to include any such changes. If the
requirements of law change so that Landlord may not legally furnish electricity
to Tenant on a submetering or any other basis, then and only in such event
Landlord reserves the right to terminate the furnishing of electricity, at any
time, upon thirty (30) days’ written notice to the Tenant, in which event the
Tenant may make application directly to the public utility and/or other
providers for the Tenant’s entire separate supply of electric current and
Landlord shall permit its wires and conduits, to the extent available and
safely capable, to be used for such purpose, but only to the extent of Tenant’s
then authorized load. Any meters, risers, or other equipment or connections
necessary to furnish electricity on a submetering basis or to enable Tenant to
obtain electric current directly from such utility and/or other providers shall
be installed by Landlord and the cost thereof shall be shared equally by
Landlord and Tenant (it being agreed that the portion thereof for which Tenant
is responsible shall be deemed additional rent under this lease and shall be
due within thirty (30) days after demand therefor). Only rigid conduit,
electricity metal tubing (EMT) or other conduit permitted by applicable law
will be allowed. Landlord, upon the expiration of the aforesaid sixty (60)
days’ written notice to the Tenant (plus such additional time as is reasonably
necessary for Tenant, using reasonable diligence, to obtain electricity
directly from the public utility) may discontinue furnishing the electric
current but this lease shall otherwise remain in full force and effect. If
Tenant was provided electricity on a rent inclusion basis when it was so
discontinued, then commencing when Tenant receives such direct service and as
long as Tenant shall continue to receive such service, the fixed annual rent
payable under this lease shall be reduced by the amount of the ERIF which was
payable immediately prior to such discontinuance of electricity on a rent
inclusion basis.

          (iii)
Alternative Service Providers: Landlord on the date hereof obtains electric
service for the building from Consolidated Edison Company. Notwithstanding
anything herein set forth to the contrary, if permitted by law, Landlord may
contract separately with Consolidated

24

Edison Company and/or one or
more other providers (“Alternative Service Providers”) to provide one or more
of the component services which together make up the entire package of electric
service (e.g., transmission, generation, distribution and ancillary services)
to the building. If Landlord elects to contract with any Alternative Service
Provider, Tenant shall cooperate with Landlord and each such Alternative
Service Provider to effect any change to the method or means of providing and
distributing electricity service to the demised premises or any other portion
of the building by reason of such change in the provision of electricity. Such
cooperation shall include but not be limited to providing Landlord or any such
Alternative Service Provider and any other person reasonable access to the
demised premises and to all wiring, conduit, lines, feeders, cable and risers,
electricity panel boxes and any other component of the electrical distribution
system within or adjacent to the demised premises.

4. ASSIGNMENT

          A.
Except as otherwise provided in this Article 4, Tenant, for itself, its heirs,
distributees, executors, administrators, legal representatives, successors and
assigns, expressly covenants that it shall not assign, mortgage or encumber
this lease, nor underlet, or suffer or permit the demised premises or any part
thereof to be used or occupied by others, without the prior written consent of
Landlord in each instance. The transfer of a majority of the issued and
outstanding capital stock of Tenant or any corporate tenant or subtenant of
this lease or a majority of the total record equity interests (or a majority of
the ultimate beneficial ownership interest) in any partnership tenant or
subtenant or any other form of entity or organization, however accomplished,
and whether in a single transaction or in a series of transactions, and the
conversion of a tenant or subtenant entity to another form of entity,
including, without limitation, a limited liability company or a limited
liability partnership, or a transfer of control of any entity shall not be
deemed an assignment of this lease or of such sublease, unless the principal
purpose of the transaction is to avoid the prohibitions of this Article 4 on
assignment and subletting. The merger or consolidation of Tenant or a
subtenant, whether a corporation, partnership, limited liability company or
other form of entity or organization, where the net worth of the resulting or
surviving corporation, partnership, limited liability company or other form of entity
or organization, is less than the net worth of Tenant or subtenant immediately
prior to such merger or consolidation shall be deemed an assignment of this
lease or of such sublease, but if such net worth is the same as or higher than
the net worth of Tenant or a subtenant immediately prior to such merger or
consolidation, then such merger or consolidation shall not be deemed an
assignment and no consent from Landlord shall be required. If this lease be
assigned, or if the demised premises or any part thereof be underlet or
occupied by anybody other than Tenant, Landlord may, after default by Tenant
beyond any applicable notice and/or grace period hereunder, collect rent from
the assignee, undertenant or occupant, and apply the net amount collected to the
rent herein reserved, but no assignment, underletting, occupancy or collection
shall be deemed a waiver of the provisions hereof, the acceptance of the
assignee, undertenant or occupant as tenant, or a release of Tenant from the
further performance by Tenant of covenants on the part of Tenant herein
contained. The consent by Landlord to an assignment or underletting shall not
in any way be construed to relieve Tenant from obtaining the express consent in
writing of Landlord to any further assignment or underletting. In no event
shall any permitted subtenant assign or encumber its sublease or further sublet
all or any portion of its sublet space, or otherwise suffer or permit the
sublet space or any part thereof to be used or occupied by others, except in compliance
with the applicable provisions of this Article 4. A

25

material modification or
amendment, or any extension of a sublease shall be deemed a sublease. In no
event may this lease be assigned to or any portion of the demised premises be
underlet to a “Prohibited Person” (as hereinafter defined in Article 48). If
any lien is filed against the demised premises or the building for brokerage
services claimed to have been performed for Tenant in connection with an
assignment or subletting, whether or not actually performed, the same shall be
discharged by Tenant within thirty (30) days thereafter, at Tenant’s expense,
by filing the bond required by law, or otherwise, and Tenant agrees to
indemnify Landlord and its agents and hold them harmless from and against any
and all claims, losses or liability resulting from such lien for brokerage
services rendered. The listing of a name other than that of Tenant, whether on
the doors of the premises, the building directory or otherwise shall not vest
any right or interest in this lease or the premises and shall not be deemed to
be the consent of landlord to any assignment or transfer of this lease, to any
sublessee of the premises, or to any use or occupancy thereof by anyone not
Tenant.

          B.
(i) If Tenant desires to assign this lease or to sublet all or substantially
all of the demised premises, it shall first submit to Landlord a written
request for consent to such transaction which request shall contain or be
accompanied by the documents described in paragraph C of this Article. Landlord
may then, by notice to such effect given within thirty (30) days after the
receipt of Tenant’s request for consent, terminate this lease on the date (the
“Termination Date”) which shall be the later to occur of (a) the effective date
of the proposed transaction, as specified by Tenant, and (b) the date which is
sixty (60) days following the date Landlord’s termination notice is given.
Tenant shall then vacate and surrender the demised premises on or before the
Termination Date and the term of this lease shall end on the Termination Date
as if that were the original expiration date of the term of this lease. Tenant
shall vacate the demised premises and surrender possession thereof to Landlord,
on or before the Termination Date, in broom clean condition, and Landlord shall
accept the demised premises “as is”.

          (ii)
If Tenant desires to sublet in a single transaction, all or substantially all
of the 14th Floor Portion, all or substantially all of the 15th
Floor Portion, or all or substantially all of all space on any other floor of
the building which is included in the demised premises, for all or
substantially all of the remainder of the term of this lease, then Tenant shall
first submit to Landlord a written request for consent to such transaction,
which request shall contain or be accompanied by the documents described in
paragraph C of this Article. Landlord may then, by notice to such effect given
within thirty (30) days after the receipt of Tenant’s request for consent,
delete from the demised premises the space proposed to be subleased (the
“Deleted Portion”), on the date (the “Deletion Date”) which shall be the later
to occur of (a) the effective date of the proposed transaction, as specified by
Tenant, and (b) the date which is sixty (60) days following the date Landlord’s
deletion notice is given. Upon such Deletion Date, the fixed annual rent and
additional rent due under this lease shall be appropriately proportionately
adjusted, and all other provisions of this lease shall be deemed modified, so
as to reflect such deletion of space from the demised premises. Tenant shall
vacate and surrender the Deleted Portion on or before the Deletion Date, in
broom clean condition, and the term of the leasing of the Deleted Portion shall
end on the Deletion Date as if that were the original expiration date of the
term of the leasing of such space. Landlord shall accept the Deleted Portion
“as is” except that Landlord, at Landlord’s expense, shall perform all such
work and make all such alterations as may be required (a) physically to demise
the Deleted Portion from the remainder of the

26

demised premises (including,
without limitation, separation of building systems and associated wiring, duct
work and piping, and removal of any internal staircase and closing up of the
slab) and to permit lawful occupancy, and (b) if applicable, to make the floor
properly and legally usable as a multi-tenanted floor, including, without
limitation, any work needed to restore public corridors and bathrooms (using
building standard fixtures and finishes); provided, however, if Tenant agreed
to perform such work, at its expense, under the terms of the proposed
assignment or sublease, then Landlord shall do so at Tenant’s reasonable
expense, which shall be deemed additional rent under this lease and shall be
due within thirty (30) days after demand, accompanied by supporting
documentation therefor. Tenant shall reasonably cooperate with Landlord in
connection with any such work, including, without limitation, by providing
Landlord and its contractors with such access to the remaining demised premises
as is necessary to perform such work. Landlord shall use commercially
reasonable efforts to minimize any interference with Tenant’s business
operations in the remaining demised premises; it being understood and agreed,
however, that such work may be performed on Business Days during Business Hours
(each as hereinafter defined in Article 50), except for any demolition, core
drilling or welding, which shall only be performed outside of such Business
Hours.

          C.
If Tenant requests Landlord’s consent to a specific assignment or subletting,
or in any other circumstance where Tenant is required to provide the
information described in this paragraph C, Tenant shall submit in writing to
Landlord (i) the name and address of the proposed assignee or subtenant, (ii) a
duly executed counterpart of the proposed agreement of assignment or sublease,
or a duly executed term sheet or letter of intent setting forth all of the
material terms of the proposed agreement of assignment or sublease, (iii)
reasonably satisfactory information as to the nature and character of the
business of the proposed assignee or subtenant, and as to the nature of its
proposed use of the space, and (iv) banking, financial or other credit
information relating to the proposed assignee or subtenant reasonably
sufficient to enable Landlord to determine the financial responsibility and
character of the proposed assignee or subtenant.

          D.
If Landlord shall not have accepted Tenant’s offer, as provided in paragraph B,
or if paragraph B shall not be applicable, then Landlord will, subject to
paragraph F below, not unreasonably withhold, condition or delay its consent to
Tenant’s request for consent to such specific assignment or subletting. Any
consent of Landlord under this Article shall be subject to the terms of this
Article and the effectiveness of any assignment or sublease under this Article
shall be conditioned upon there being no default by Tenant, beyond any notice
and/or grace period, under any of the terms, covenants and conditions of this
lease at the time that Landlord’s consent to any such subletting or assignment
is requested.

          E.
Tenant understands and agrees that no assignment or subletting shall be
effective unless and until Tenant, upon receiving any necessary Landlord’s
written consent (and unless it was theretofore delivered to Landlord) causes a
duly executed copy of the sublease or assignment to be delivered to Landlord
within ten (10) days after execution thereof. Any such sublease shall provide
that the subtenant shall comply with all applicable terms and conditions of
this lease to be performed by Tenant hereunder. Any such assignment of lease
shall contain an assumption by the assignee of all of the terms, covenants and
conditions of this lease to be performed by Tenant, accruing from and after the
effective date of the transaction.

          F.
Anything herein contained to the contrary notwithstanding:

27

                    (i)
Tenant shall not advertise (but may list with brokers) its space for assignment
or subletting at a rental rate lower than the greater of the then building
rental rate for such space or the rental rate then being paid by Tenant to Landlord.

                    (ii)
The transfer of outstanding capital stock of any corporate tenant, for purposes
of this Article, shall not include sale of such stock which is effected through
the “over-the-counter market” or through any recognized stock exchange.

                    (iii)
No assignment or subletting shall be made:

	
 

	
 

	
 

	
(a) To any person or entity which shall at
that time be a tenant, subtenant or other occupant (or an affiliate thereof,
other than a then existing affiliate which actually requires additional space
for the conduct of its business) of any part of the building, or who dealt
with Landlord or Landlord’s agent (directly or through a broker) with respect
to space in the building during the four (4) months immediately preceding
Tenant’s request for Landlord’s consent, provided that Landlord then has, or
within ninety (90) days from the date Landlord’s consent is requested by
Tenant will have, comparable space for a comparable term available for
leasing);

	
 

	
 

	
 

	
(b) By the legal representatives of Tenant
or by any person to whom Tenant’s interest under this lease passes by
operation of law, except in compliance with the provisions of this Article;

	
 

	
 

	
 

	
(c) To any person or entity for the conduct
of a business which is not in keeping with the standards and the general
character of the building of which the demised premises form a part;

	
 

	
 

	
 

	
(d) Which results in the occupancy of the
demised premises by more than six (6) occupants (including Tenant); and

	
 

	
 

	
 

	
(e) With respect to a sublease, for a term
that shall expire not later than one (1) day prior to the scheduled
expiration date of the term of this lease.

                    (iv)
No subtenant shall have a right to sublet further or assign its sublease
without obtaining Landlord’s prior written consent thereto, which consent shall
be granted or withheld in accordance with the terms of this Article 4 as if
Tenant were requesting it, and provided that Landlord shall have a right of
recapture pursuant to the provisions set forth in paragraph B of this Article
and the right to share in Tenant’s share of the profits of the transaction
pursuant to the provisions of paragraph J of this Article.

          G.
Anything herein above contained to the contrary notwithstanding, the provisions
of paragraph B and paragraph J of this Article 4 shall not apply to, and
Landlord’s consent shall not be required with respect to (i) the use by an
Affiliate (as hereinafter defined) of Tenant of all or any portion of the
premises or (ii) an assignment of this lease or a sublease of all or any
portion of the demised premises to an Affiliate of Tenant, provided that any
such transaction referred to in this clause (ii) complies with the following
provisions of this Article 4: the second sentence of paragraph D; paragraph E
(except that Landlord’s consent shall not be required and

28

Tenant shall provide Landlord
with a copy of the assignment agreement or sublease, as therein described);
paragraph F(iii)(c); paragraph F(iii)(e); paragraph F(iv); paragraph K; the
second sentence of paragraph L; paragraph N; and paragraph O; and provided,
further, that the following provisions of this Article shall be applicable to
any such transaction: the fourth, sixth, seventh, eighth, ninth and tenth
sentences of paragraph A. Tenant shall give Landlord at least ten (10) days’
prior written notice of any transaction covered in this paragraph G, which
notice shall contain or be accompanied by (a) a certified statement by an
officer of Tenant that the proposed assignee or sublessee, as the case may be,
is an Affiliate of Tenant (and describing the relationship), and (b) the
written statement by Tenant confirming that Tenant will remain primarily
liable, jointly and severally with any transferee or assignee, for the
obligations of Tenant under this lease. The term “Affiliate” when used herein
shall mean any entity, directly or indirectly, controlled by, controlling or
under common control with another entity.

          H.
Anything herein above contained to the contrary notwithstanding, the provisions
of paragraph B and paragraph J of this Article shall not apply to, and
Landlord’s consent shall not be required, with respect to an assignment of this
lease or to a sublease of all but not part of the demised premises to any
corporation or other entity (“Successor Entity”) (i) to which all or
substantially all of the assets of Tenant are transferred or sold, or (ii) into
which or with which Tenant may be merged or consolidated, provided that (a) the
net worth (determined in accordance with GAAP or if such entity is a foreign
entity, International Accounting Standards) of such transferee or of the
resulting or surviving corporation or other entity, as the case may be, is
equal to or greater than the net worth of Tenant (determined in accordance with
GAAP) immediately prior to such transfer or transaction; and (b) any such
transaction complies with the following provisions of this Article 4: the
second sentence of paragraph D; paragraph E (except that Landlord’s consent
shall not be required and Tenant shall provide Landlord with a copy of the
assignment agreement or sublease, as therein described); paragraph F(iii)(c);
paragraph F(iii)(e); paragraph F(iv); paragraph K; the second sentence of
paragraph L; paragraph N; and paragraph O; and provided, further, that the
following provisions of this Article shall be applicable to any such
transaction: the fourth, sixth, seventh, eighth, ninth and tenth sentences of
paragraph A. Tenant shall give Landlord at least ten (10) days’ prior written
notice of any such transaction, which notice shall contain or be accompanied by
(x) the documents described in paragraph C of this Article, (y) reasonably
satisfactory proof that the above described net worth and other applicable
provisions of this paragraph have been satisfied, and (z) the written statement
by Tenant confirming that Tenant will (if and to the extent it still exists)
remain primarily liable, jointly and severally with any transferee or assignee,
for the obligations of Tenant under this lease.

          I.
Anything herein above contained to the contrary notwithstanding, the provisions
of paragraphs B, C, E, J, M and N of this Article shall not apply to, and
Landlord’s consent shall not be required, with respect to one or more
sub-lettings, from time to time, of up to an aggregate of 15,000 rentable
square feet of the 15th Floor Portion, provided that (i) Tenant
shall give Landlord fifteen (15) days’ prior written notice of any such
transaction, which notice shall include a copy of the executed sublease
agreement for any such transaction; (ii) the term of any such sublease
agreement shall not expire later than the last day of the tenth Lease Year;
(iii) any such subtenant shall be reputable and financially responsible; (iv)
Tenant shall not be in default under this lease beyond any applicable notice
and/or grace period at the time Tenant enters into any such sublease; and (v)
any such transaction shall comply with the following provisions of

29

this Article 4: paragraph F and
paragraph K (and the following provisions of this Article shall apply to any
such transaction: the fourth, sixth, seventh, eighth, ninth and tenth sentences
of paragraph A).

          J.
(i) In the event of an assignment of this lease or sublease by Tenant of all or
a portion of the demised premises (except with respect to an assignment or
sublease which does not require Landlord’s consent under paragraphs G, H, I, P
or Q of this Article 4), Tenant shall pay to Landlord the following sums: (a)
with respect to a sublease, fifty percent (50%) of (1) any rent or other
consideration (including, without limitation, sums for fixtures, furniture,
equipment and other personal property less, in the case of a sale thereof, the
then unamortized value thereof on Tenant’s federal tax returns) paid to Tenant
by any subtenant which (after first deducting from such rent or other
consideration the costs of Tenant, if any, in effecting the subletting,
including reasonable alteration costs, commissions and legal fees) is in excess
of (2) the rent allocable (strictly on a per square foot basis, without regard
to any other allocation of value, by dividing aggregate consideration by the
rentable square feet of the area so sublet) to the subleased space which is
then being paid by Tenant to Landlord pursuant to the terms hereof, and (b)
with respect to an assignment of this lease, fifty percent (50%) of any other
profit or gain (after first deducting from such profit or gain any necessary
expenses incurred) realized by Tenant from any such assignment. All sums
payable hereunder by Tenant shall be payable to Landlord as additional rent as
and when received by Tenant (and shall be payable to Landlord only after Tenant
shall have first deducted and recovered in full the costs described above or in
subparagraph (ii) below).

                    (ii)
With respect to the deductions permitted under (i)(a) and (i)(b) above, in the
event Tenant assigns this lease or sublets all or any part of the demised
premises during the initial term of this lease, then Tenant may also deduct the
following: (1) in the case of an assignment, the unamortized out-of-pocket
costs to Tenant of the Tenant’s Initial Installation Work; and (2) in the case
of a sublease, on an amortized basis over the term of the sublease, such
unamortized out-of-pocket costs to Tenant of Tenant’s Initial Installation Work
(proportionately adjusted based on the rentable square foot area of the
subleased premises); in either case provided that an executive officer of
Tenant has certified the amount of such out-of-pocket costs to Landlord, in
writing, within thirty (30) days after any request by Landlord therefor (and
simultaneously provided Landlord with reasonable evidence of the facts upon
which such certification was based); provided, however, that if Landlord does
not so request such certification, then such certification shall be delivered
by Tenant to Landlord together with Tenant’s request for Landlord’s consent to
the transaction. It is agreed that, for purposes of determining such
unamortized out-of-pocket costs, Tenant’s Initial Installation Work shall be
amortized on a straight-line basis over the initial term of this lease. For
example, if the cost of the Tenant’s Initial Installation Work is $150,000, and
Tenant thereafter, commencing during the third Lease Year, sublets the entire
demised premises, then the unamortized out-of-pocket cost to Tenant of such
improvements would be $120,000, which (if the sublease rental rate is in excess
of the applicable fixed rental rate under this lease) would be deducted at the rate
of up to $10,000 a year for the remaining twelve (12) years of the term. (Using
the same set of facts, but assuming the Tenant assigns this lease during such 3rd
year of the term, then the entire $120,000 would be deducted at one time
against any payment to the assignor on account of this lease.)

30

          K.
Each subletting pursuant to this Article shall be subject to all of the
covenants, agreements, terms, provisions and conditions contained in this
lease. Notwithstanding any such subletting to any subtenant and/or acceptance
of rent or additional rent by Landlord from any subtenant, Tenant shall and
will remain fully liable for the payment of the fixed annual rent and
additional rent due and to become due hereunder and for the performance of all of
the covenants, agreements, terms, provisions and conditions contained in this
lease on the part of Tenant to be observed and performed and for all of the
acts and omissions of any licensee, subtenant, or any other person claiming
under or through any subtenant that 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.

          L.
Any assignment or transfer shall be made only if, and shall not be effective
until, the assignee shall execute, acknowledge and deliver to Landlord an
agreement whereby the assignee shall unconditionally assume all of the
obligations of this lease on the part or Tenant to be performed or observed,
accruing from and after the date of the assignment or transfer, and whereby the
assignee shall agree that the provisions contained herein 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 hereof, and notwithstanding the acceptance of fixed
annual rent and/or additional rent by Landlord from an assignee, transferee or
any other party, the original named Tenant shall remain fully liable for the
payment of the fixed annual rent and additional rent and for the other
obligations of this lease on the part of Tenant to be performed or observed.

          M.
If Landlord shall decline to give consent to any proposed assignment or
sublease, or if Landlord shall exercise Landlord’s option under paragraph B of
this Article, Tenant shall indemnify, defend and hold Landlord harmless from
and against any and all losses, liabilities, costs and expenses (including reasonable
attorneys’ fees) resulting from any claims that may be made against Landlord by
the proposed assignee or subtenant or by any brokers or other persons claiming
a commission or similar compensation in connection with the proposed assignment
or sublease (other than those claiming to have dealt with Landlord or to have
been retained by Landlord). This provision shall survive the expiration or
sooner termination of this lease. Tenant shall pay to Landlord on demand
Landlord’s costs (including, without limitation, reasonable legal fees and, in
the case of a proposed partial sublet, reasonable architect’s and engineering
fees) incurred in connection with reviewing Tenant’s request for any such
consent.

          N.
The joint and several liability of Tenant and any immediate or remote successor
in interest to 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; provided, however, that in the case of a modification of this lease,
Tenant’s liability under this lease shall be no greater than it would have been
in the absence of such modification.

          O.
The term “Tenant” when used in this Article shall mean the originally
denominated Tenant or each proximate or remote assignee thereof or successor in
interest thereto, but only if and so long as such entity is the tenant under
this lease. The term “control” as

31

used in this Article shall mean
the right to exercise final decision making authority on behalf of any entity.
Wherever in this Article Tenant or any other person is required to provide
Landlord with banking, financial or other credit information such information
shall include, without limitation, a balance sheet (in reasonable detail,
listing all assets and liabilities and prepared in accordance with generally
accepted accounting principles (or, in the case of a foreign company, in
accordance with international accounting standards)) of each relevant party to
the transaction in question certified to Landlord by an independent certified
public accountant.

          P.
Notwithstanding anything to the contrary contained herein, Tenant shall have
the right, without the prior consent of Landlord, and without being subject to
paragraph B or J of this Article, to enter into license agreements for the use
of desk space (“Desk Space”) within the demised premises only with third party
outsourced service providers using such Desk Space to service Tenant or
Tenant’s Affiliates at the demised premises (provided that Tenant’s third party
auditors may also service Tenant’s Affiliates not located at the demised
premises), including, but not limited to, marketing personnel, auditors,
consultants, professional advisors, commercial partners, accountants, mail room
facilities, photocopy facilities, messenger facilities and other vendors,
provided that Tenant shall give Landlord at least ten (10) days’ prior written
notice of any such transaction, such Desk Space is not separately demised, and
such licensing agreements are not being entered into to violate the provisions
of this lease prohibiting assignment and sublettings. Notwithstanding anything
contained herein to the contrary, in no event shall any use of such Desk Space
vest in such user (“Desk Space User”) any rights or interest under this lease
or in the demised premises or any portion thereof.

          Q.
Notwithstanding anything to the contrary contained herein, Tenant shall have
the right, without prior consent of Landlord, and without being subject to
paragraph B or J of his Article, to enter into a license agreement or sublease
for the use of office space, which shall be undivided and consist of less than
two thousand (2,000) rentable square feet on each of the 14th Floor
Portion and the 15th Floor Portion, with any charitable organization,
including, without limitation, D.K.M.S. Americas (other than a charitable
organization whose activities may, in Landlord’s reasonable opinion, pose a
threat or security risk to tenants of the building), provided that Tenant shall
give Landlord at least ten (10) days’ prior written notice of any such
transaction, and such occupancy shall comply in all respects with all
applicable laws, rules and regulations (including, without limitation, the
provisions of the New York City Building Code).

          R.
(i) IN NO EVENT SHALL TENANT BE ENTITLED TO MAKE, NOR SHALL TENANT MAKE, ANY
CLAIM, AND TENANT HEREBY WAIVES ANY CLAIM, FOR MONEY DAMAGES (NOR SHALL TENANT
CLAIM ANY MONEY DAMAGES BY WAY OF SET-OFF, COUNTERCLAIM OR DEFENSE) BASED UPON
ANY CLAIM OR ASSERTION BY TENANT THAT LANDLORD HAS UNREASONABLY WITHHELD OR
UNREASONABLY CONDITIONED OR UNREASONABLY DELAYED ITS CONSENT OR APPROVAL TO A
PROPOSED ASSIGNMENT OR SUBLETTING AS PROVIDED FOR IN THIS LEASE. TENANT’S SOLE
REMEDY SHALL BE AN ACTION OR PROCEEDING TO ENFORCE ANY SUCH PROVISION, OR FOR
SPECIFIC PERFORMANCE, INJUNCTION OR DECLARATORY JUDGMENT, OR TO REFER THE SAME
TO EXPEDITED ARBITRATION PURSUANT TO ARTICLE 41 OF THIS LEASE. HOWEVER, THE
PROVISIONS OF THIS SUBPARAGRAPH R(i) SHALL NOT BE APPLICABLE IF IT IS

32

FINALLY DETERMINED BY A COURT
THAT LANDORD ACTED MALICIOUSLY OR IN BAD FAITH IN WITHOLDING OR DELAYING SUCH
CONSENT OR APPROVAL.

                    (ii)
If Tenant desires to determine any dispute between Landlord and Tenant as to
whether Landlord has unreasonably withheld, unreasonably conditioned or
unreasonably delayed its consent or approval to a proposed assignment or
subletting as provided for in this Article, such dispute shall be settled and
finally determined by expedited arbitration in accordance with the provisions
of Article 41 of this lease.

          S.
If Landlord does not exercise its option under paragraph B of this Article, and
if Tenant effects a sublease of the entire demised premises, all or
substantially all of the 14th Floor Portion, or all or substantially
all of the 15th Floor Portion, for all or substantially all of the
entire remaining term of this lease, less one day (a “Covered Sublease”), and
if the term of this lease shall terminate prior to the last day of the
fifteenth Lease Year as a result of a default by Tenant hereunder, then, if and
so long as the subtenant under the Covered Sublease (a “Covered Subtenant”) is
not in default beyond any applicable notice and/or grace period thereunder, the
Covered Subtenant, at its option, to be exercised by written notice to Landlord
not later than fifteen (15) days after notice to the Covered Subtenant of the
effective date of the termination of this lease due to Tenant’s default (time
being of the essence), may elect to remain in possession of premises demised
under the Covered Sublease (the “Covered Sublease Premises”), from and after
the effective date of such termination, pursuant to all of the terms, covenants
and conditions of the Covered Sublease, with the same force and effect as if
Landlord, as sublandlord, and the Covered Subtenant, as subtenant, had entered
into the Covered Sublease as of such effective date for a term equal to the
unexpired term of the Covered Sublease, in which event Landlord and the Covered
Subtenant shall attorn to and recognize each other and Landlord and the Covered
Subtenant shall have the same rights, obligations and remedies under the
Covered Sublease as were had by Tenant and the Covered Subtenant thereunder
prior to such effective date, respectively, except that: (i) the fixed annual
rent under the Covered Sublease shall be equal to the greater of (a) the fixed
annual rent payable under the Covered Sublease, and (b) the fixed annual rent
payable under this lease (proportionately adjusted for the size of the Covered
Sublease Premises, if same does not cover the entire demised premises
hereunder); (ii) the Covered Sublease shall be deemed modified so that (in lieu
of any obligation of the Covered Subtenant to pay any tax or operating expense
escalation additional rent to Tenant under the Covered Sublease) the Covered
Subtenant shall be obligated to pay Landlord real estate tax escalation
additional rent and operating expense escalation additional rent in accordance
with the applicable provisions of Article 2 of this lease (except that, if the
Covered Sublease Premises does not cover the entire demised premises hereunder,
“The Percentage” shall be determined by a fraction, the numerator of which is
the rentable square foot area of the Covered Sublease Premises, and the
denominator of which is 2,720,595); and (iii) in no event shall Landlord be (a)
obligated to do or complete any work obligations of the Tenant in the demised
premises; or (b) liable for any act, omission or default of Tenant (unless
relating to a circumstance which continues after the effective date of such
termination, in which event Landlord’s sole obligation shall be to remedy or
cure such circumstance); or (c) subject to any offsets, claims or defenses
which the Covered Subtenant might have against Tenant; or (d) bound by any
fixed annual rent or additional rent which the Covered Subtenant might have
paid to Tenant for more than one (1) month in advance; or (e) bound by any
modification, amendment or abridgment of the Covered Sublease made without
Landlord’s prior written approval. The provisions of this paragraph S

33

shall be self-operative without
the need for further documentation; provided, however, that, upon Landlord’s
request, a Covered Subtenant shall execute such documents and instruments
(including, without limitation, a new lease upon the executory terms of the
Covered Sublease, as modified hereby) as Landlord reasonably requires to
confirm or further effect such non-disturbance and attornment.

5. DEFAULT

          A.
Landlord may terminate this lease on five (5) days’ notice: (a) if Tenant shall
have failed to pay any installment of fixed annual rent or additional rent or
any other payment when due hereunder, and such failure shall have continued for
a period of ten (10) days after notice to Tenant thereof; or (b) if Tenant
shall have failed to cure a default in the performance of any covenant of this
lease (except the payment of rent), or any rule or regulation hereinafter set
forth, within thirty (30) days after written notice thereof from Landlord, or
if such default cannot be completely cured in such time, if Tenant shall not
promptly proceed to cure such default within said thirty (30) days, or shall
not complete the curing of such default with due diligence; or (c) if a petition
in bankruptcy shall be filed by or against Tenant or if Tenant shall make a
general assignment for the benefit of creditors, or receive the benefit of any
insolvency or reorganization act; or (d) if a receiver or trustee is appointed
for any portion of Tenant’s property and such appointment is not vacated within
ninety (90) days; or (e) if an execution or attachment shall be issued under
which the premises shall be taken or occupied or attempted to be taken or
occupied by anyone other than Tenant. Notwithstanding anything herein to the
contrary set forth, Tenant shall not commit waste to any portion of the
building irrespective of whether within or without the demised premises.

          B.
The termination of this lease (which shall include, without limitation, any
rights of renewal or extension thereof) shall be effective upon the giving of
the notice first referred to in the preceding paragraph without the need for
any further act and thereupon this lease shall terminate as completely as if
that were the date originally fixed for the expiration of the term of this
lease; but Tenant shall remain liable as hereinafter provided, and Landlord may
institute summary or other proceedings to repossess the premises or re-enter
and take possession of the premises by the exercise of self-help or any other
means permitted by law.

          C.
Landlord hereby authorizes its then current managing agent of the building at
any time to act on Landlord’s behalf to make demands on and give notices to
Tenant hereunder, including without limitation (i) demands for payment of rent
or additional rent, performance of any obligation, or cure of any default, (ii)
notices of default or termination, and (iii) all other notices that may be
required by law or this lease in connection with or as a predicate to any
action or proceeding for rent and/or possession of the demised premises. Tenant
acknowledges and agrees that such managing agent is authorized to give such
notices and shall not (and hereby waives the right to) contest such
authorization or raise any defense to any action or proceeding predicated on
any allegation of lack of such authorization.

6. RE-LETTING; ETC.

          A.
Tenant hereby expressly waives any right of redemption granted by any present or future law.
“Re-enter” and “re-entry” as used in this lease are not restricted to their
technical

34

legal meanings. In the event of
a breach or threatened breach of any of the covenants or provisions hereof
Landlord or Tenant shall have the right to seek an injunction. Mention herein
of any particular remedy shall not preclude Landlord from any other available
remedy. Landlord shall recover as liquidated damages, in addition to accrued
rent and other charges, if Landlord’s re-entry is the result of Tenant’s
bankruptcy, insolvency, or reorganization, the full rental for the maximum
period allowed by any act relating to bankruptcy, insolvency or reorganization.

          B.
In case of any re-entry, dispossess by summary proceedings or termination of
the term hereof due to Tenant’s default, (x) the rent shall become due
thereupon and be paid up to the time of such re-entry, dispossess and/or
termination; (y) Landlord may re-let the demised premises or any part or parts
thereof, either in the name of Landlord or otherwise, for a term or terms,
which may at Landlord’s option be less than or exceed the period which would
otherwise have constituted the balance of the term of this lease and may grant
concessions or occupancy free of rent for any period; and (z) Tenant shall also
pay Landlord as liquidated damages for the failure of Tenant to perform any
obligation, at Landlord’s election, either of the amounts provided for in item
(1) or item (2) below and, in addition thereto, the amounts provided for in
item (3) below. Landlord shall have no obligation to re-let the premises, and
its failure or refusal to do so, or failure to collect rent on re-letting,
shall not affect Tenant’s liability hereunder. In no event shall Tenant be
entitled to a credit or repayment for rerental income which exceed the sums
payable to Tenant hereunder or which covers a period after the original term of
this lease. Said items (1), (2) and (3) are as follows:

                    (1)
A sum which, at the time of such re-entry, dispossess or termination, as the
case may be, represents the then value (using a discount rate equal to the
yield on United States Treasury obligations selected by Landlord maturing
closest to the date set forth herein as the then established expiration date of
the term of this lease) of the amount by which (x) the aggregate of the fixed
annual rent and any regularly payable additional rent hereunder that would have
been payable by Tenant for the period commencing with such re-entry, dispossess
or termination, as the case may be, and ending on the date then established
herein for the expiration of the term of this lease exceeds (y) the aggregate
rental value of the demised premises for the same period (which sum is
sometimes hereinafter called “the lump sum payment”); or

                    (2)
Sums equal to any deficiency between the rent hereby reserved and/or covenanted
to be paid and the net amount, if any, of the rents collected (i.e.,
the amount of rents collected hereunder less all of the costs referred to in
item (3) below incurred by Landlord) on account of the lease or leases of the
demised premises for each month of the period which would otherwise have
constituted the balance of the term of this lease. Such deficiency shall become
due and payable monthly, as it is determined; and

                    (3)
A sum to be added to such lump sum payment or deficiency, as the case may be,
equal to the expenses that Landlord incurs in connection with re-letting the
demised premises and pursuing Landlord’s rights and remedies (whether or not
any legal action is commenced) including, but not limited to, legal expenses,
reasonable attorneys’ fees, court costs, brokerage commissions, advertising
costs, the value of any rent-free period, the costs of all alterations and
decorations deemed advisable by Landlord to market the demised premises
following such re-entry or dispossess or in connection with leasing the demised
premises to a

35

new tenant, and costs to keep
the demised premises in good order and/or for preparing the same for
re-letting.

          C.
If Landlord re-enters the premises for any cause, or if Tenant abandons the
premises, any property left in the premises by Tenant shall be deemed to have
been abandoned by Tenant, and Landlord shall have the right to retain or
dispose of such property in any manner without any obligation to account
therefor to Tenant. In the event either party hereto shall file suit with
respect to, in connection with or otherwise to enforce this lease or any
provision contained herein, the party prevailing in such suit shall be entitled
to recover, in addition to all other remedies or damages, as provided herein,
reasonable attorney’s fees and expenses incurred in such suit.

7. LANDLORD MAY CURE DEFAULTS

          If
Tenant shall default in performing any covenant or condition of this lease,
Landlord may perform the same for the account of Tenant, and if Landlord, in
connection therewith, or in connection with any default by Tenant, makes any
expenditures or incurs any obligations for the payment of money, including but
not limited to reasonable attorneys’ fees and disbursements, such sums so paid
or obligations incurred shall be deemed to be additional rent hereunder, and
shall be paid by Tenant to Landlord, together with interest at a rate (the
“Applicable Rate”) equal to the average of all prime rates published from time
to time in The
Wall Street Journal (Eastern Edition) plus three percent (3%),
calculated from the date of each expenditure by Landlord, within thirty (30)
days of rendition of any bill or statement therefor, and if Tenant’s lease term
shall have expired at the time of the making of such expenditures or incurring
such obligations, such sums shall be recoverable by Landlord as damages.

8. ALTERATIONS

          A.
Tenant shall make no alteration, addition or improvement (each an “alteration”)
in the premises, without the prior written consent of Landlord, and then only
in such manner and with such materials as shall be reasonably approved by
Landlord.

          B.
Anything in this Article to the contrary notwithstanding, Landlord shall not
unreasonably withhold, condition or delay approval of written requests of
Tenant to make nonstructural interior alterations in the demised premises,
provided that such alterations do not adversely affect the proper functioning
of utility services, plumbing and electrical lines or other systems of the
building. Notwithstanding the foregoing, Landlord’s prior written approval
shall not be required with respect to (a) any decorative work, such as
painting, wall covering, carpeting and picture hanging, or (b) any other
alteration not requiring the approval of, and/or submission of plans to, any
governmental agency (including, without limitation, the Department of Buildings
of the City of New York), provided that such alteration does not adversely
affect (other than to a de minimis extent) the proper functioning of utility
services or plumbing and electrical lines or other systems of the building
outside of the demised premises; and provided, further, that all such work
shall be performed in accordance with the other applicable provisions of this
Article (except the requirement of Landlord’s approval of work or the plans and
specifications for such work; Tenant, nevertheless, shall be required to
provide Landlord with a

36

reasonably detailed written
description, at least ten (10) days prior to the start thereof). All
alterations shall be performed in accordance with the foregoing and the
following conditions:

          (i)
All alterations requiring the submission of plans to any governmental agency
(including, without limitation, the Department of Buildings of the City of New
York) shall be performed substantially in accordance with plans and
specifications first submitted to Landlord for its prior written approval, which
approval shall not be unreasonably withheld, conditioned or delayed with
respect to nonstructural interior alterations in the demised premises that do
not adversely affect (other than to a de minimis extent) the proper functioning
of utility services or plumbing and electrical lines or other systems of the
building. If Landlord fails to respond to any such request for approval within
ten (10) Business Days after Landlord’s initial receipt of such plans and
specifications (or within five (5) Business Days after Landlord’s receipt of
any resubmission of such plans and specifications by Tenant), Tenant may send
Landlord a second request for approval of such plans and specifications. If
Landlord fails to respond to such second request for approval within five (5)
days after its receipt of same, then Landlord shall be deemed to have approved
such plans and specifications (provided such second request specifies in bold
faced type and capital letters that Landlord shall be deemed to have approved
such plans and specifications if it fails to respond to such second request
within such five (5) day period).

          (ii)
All alterations shall be performed in a good and workerlike manner. Tenant
shall, prior to the commencement of any such alterations, at its sole cost and
expense, obtain and exhibit to Landlord any governmental permit required in
connection with such alterations, and shall deliver such permits, sign-offs,
approvals and certificates of completion or certificates of occupancy required
in connection with such completed alterations. However, if any building
violation (other than a violation which results from any act or omission of
Tenant or anyone claiming by, through or under Tenant, or its or their
respective employees, agents or contractors) delays or prevents Tenant from
obtaining any such permit, sign-off, approval or certificate required in
connection with such alterations, then Landlord shall cure and remove said
violation (or shall cause such violation to be cured and removed) within thirty
(30) days of the receipt of Tenant’s notice to Landlord of such violation and
delay, or if such violation is of such a nature that it cannot be removed and
cured within thirty (30) days, Landlord shall commence within such thirty (30)
day period, and thereafter diligently pursue, the cure and removal of such
violation. If Tenant is unable to or is delayed in obtaining a building permit
for Tenant’s Initial Installation Work or is unable or is delayed in legally
occupying any portion of the demised premises (for initial occupancy thereof)
as a result of the existence of such violation(s), then the fixed annual rent
and escalation additional rent payable pursuant to Article 2 of this lease with
respect to such portion of the demised premises that may not be legally occupied
shall be abated for one day for each day that Tenant is actually delayed in
obtaining any such permit, sign-off, approval or certificate which is necessary
for Tenant to legally occupy such portion of the demised premises.

          (iii)
All alterations shall be performed in compliance with all other applicable
provisions of this lease, all building regulations (including specifications
for construction material and finishes criteria adopted by Landlord for the
building) and with all applicable laws, ordinances, directions, rules and
regulations of governmental authorities having jurisdiction, including, without
limitation, the Americans with Disabilities Act of 1990, as amended, New York
City Local Law No. 5/73 and New York City Local Law No. 58/87 and similar
present or

37

future laws, and regulations
issued pursuant thereto. Notwithstanding anything to the contrary herein
contained, Tenant agrees not to perform any work that adversely affects the
structural elements of the building or the proper functioning of any building
mechanical system other than connecting to same pursuant to approved plans.

          (iv)
All work shall be performed with union labor having the proper jurisdictional
qualifications by contractors and subcontractors approved by Landlord, which
approval shall not be unreasonably withheld or delayed with respect to
contractors or subcontractors performing nonstructural interior alterations in
the demised premises that do not affect utility services or plumbing and
electrical lines or other systems of the building. In this regard, Exhibit D
attached hereto and made a part hereof constitutes a current list of the
contractors that are approved by Landlord for purposes of performing
alterations in the building, and Landlord shall, from time to time, upon
Tenant’s written request, provide an updated list of such contractors; and
Exhibit D-1 attached hereto and made a part hereof constitutes a current list
of the contractors that are approved by Landlord for purposes of performing Tenant’s
Initial Installation Work.

          (v)
All work to be performed by Tenant shall be done in a manner that will not
unreasonably interfere with or disturb other tenants and occupants of the
building. No demolition or core drilling or welding shall be permitted between
the hours of 8:00 a.m. and 6:00 p.m. on Mondays through Fridays.

          (vi)
During the course of any alterations or other work requiring a permit from any
governmental authority, Tenant shall cause its contractors to provide the following
insurance, also issued by an insurance company authorized to do business in the
State of New York, maintaining a rating of A-VIII or better in Best’s Insurance
Reports-Property-Casualty (or an equivalent rating in any successor index
adopted by Best’s or its successor): worker’s compensation and disability
insurance covering all persons employed for such work; commercial general
liability and property damage insurance naming the holder of any mortgage on
the building, Landlord, its managing agent and its designees as additional
insureds, with coverage of at least $3,000,000 combined single limit; builder’s
risk insurance in an amount reasonably satisfactory to Landlord; and business
automobile liability insurance for all owned, non-owned and hired vehicles with
a $1,000,000 combined single limit.

          (vii)
Tenant shall deliver to Landlord prior to commencing any alteration,
certificates of the insurance required under clause (vi) above naming with
respect to such insurance, except workers compensation and disability
insurance, Landlord, its managing agent, its mortgagees and other designees
with an insurable interest, as additional insureds, together with the
declaration page of each such insurance policy and the endorsements thereto
designating such persons or parties as additional insureds.

          (viii)
Notwithstanding anything herein set forth to the contrary, within thirty (30)
days after final completion of any alteration, Tenant shall deliver to the
Landlord final record drawings of the alteration including, as may be pertinent
to the work performed, a reflected ceiling plan, mechanical and electrical
drawings, partition plan and any other drawings which may be required to
indicate accurately the layout and systems of the demised premises. Tenant
shall require its architect to load and maintain such record plans on a CADD
system.

38

          (ix)
Tenant shall have the right to have its architects and engineers “self-certify”
the work being performed by Tenant.

          C.
(i) All alterations, additions or improvements to the premises, including
window and central air conditioning equipment and duct work, if any, and
fixtures, equipment and built-ins, except movable office furniture and
equipment installed at the expense of Tenant (“Tenant’s Property”), shall,
unless Landlord elects otherwise in writing, become the property of Landlord,
and shall be surrendered with the premises at the expiration or sooner
termination of the term of this lease. Notwithstanding the foregoing, (a) all
alterations, additions or improvements to the premises made at Tenant’s expense
during the term of this lease shall be deemed to be owned by Tenant for
purposes of income taxes and Tenant shall have the right to depreciate the cost
of same, (b) all alterations, installations or improvements to the premises
made at Landlord’s expense during the term of this lease shall be deemed to be
owned by Landlord for purposes of income taxes and Landlord shall have the
right to depreciate the cost of same, and (c) in no event shall any of Tenant’s
Property constitute an alteration, addition or improvement for purposes hereof.

                    (ii)
Notwithstanding anything contained herein to the contrary, any alterations,
additions or improvements which are not standard for normal office
installations (“Specialty Alterations”), e.g., reinforced flooring for high
density filing, vaults and internal stairways, shall be removed by Tenant and
any damage repaired, at Tenant’s expense, prior to the expiration of the term
hereof; provided, however, that Landlord shall be required to designate each
such Specialty Alteration that Tenant must remove prior to the expiration of
the term hereof, at the time Landlord approves any such Specialty Alteration;
and provided, further, that Tenant’s request for consent to such alteration
specifies (in bold faced type and capital letters) that Landlord must so
designate. Other than with respect to such Specialty Alterations so designated
by Landlord, Tenant shall have no obligation to restore the demised premises,
and Tenant shall not be required to remove any executive lavatories installed
by Tenant. Notwithstanding anything contained herein to the contrary, in no
event will any Supplemental A/C Unit (as hereinafter defined in Article 31C) be
deemed a Specialty Alteration hereunder.

9. LIENS

          Prior
to commencement of its work in the demised premises, Tenant shall obtain and
deliver to Landlord a written letter of authorization, in form reasonably
satisfactory to Landlord, signed by Tenant’s architects, engineers, designers
and consultants to become involved in such work, which shall confirm that in
the event such work is discontinued or abandoned any of their drawings or plans
are to be removed from any filing with governmental authorities, on request of
Landlord, in the event that said architect, engineer or designer thereafter no
longer is providing services with respect to the demised premises. With respect
to contractors, subcontractors, materialmen and laborers, and architects, engineers
and designers, for all work or materials furnished to Tenant at the premises
where the value of same exceeds $10,000.00, Tenant agrees to obtain and deliver
to Landlord written and unconditional waivers of mechanics liens upon the
premises or the building, after payments to the contractors, their
subcontractors and vendors, Tenant’s architects, engineers, designers and
consultants, subject to any then applicable provisions of the Lien law.
Notwithstanding the foregoing, Tenant at its expense shall cause any lien filed
against the premises or the building, for work or materials claimed to have
been

39

furnished to Tenant, to be
discharged of record within thirty (30) days after notice thereof, by payment,
filing of the bond required by law or otherwise.

10. REPAIRS

          A.
Tenant shall keep the demised premises clean and in good order and repair.
Tenant shall take good care of the premises and the fixtures and appurtenances
therein, and shall make all repairs necessary to keep them in good working
order and condition, including structural repairs and replacements of glass
windows when those are necessitated by the act, omission or negligence of
Tenant or its agents, employees or invitees (subject, however, to Article 42E
hereof). The exterior walls of the building, the windows and the portions of
all window sills outside same and areas above the ceiling slab are not part of
the premises demised by this lease, and Landlord hereby reserves all rights to
such parts of the building. Tenant shall not create any nuisance within the
building.

          B.
Landlord shall operate, maintain and make all necessary repairs (both
structural and nonstructural) to the building systems servicing the demised
premises and to the public portions of the building, both exterior and
interior, in conformance with standards applicable to first-class office
buildings in mid-town Manhattan (except such repairs which are necessitated by
the acts, omissions or negligence of Tenant, its agents, employees or
contractors (subject, however, to Article 42E hereof), which shall be made by
Landlord at Tenant’s expense).

          C.
Notwithstanding anything contained in this lease to the contrary, if Landlord
fails to comply with its maintenance or repair obligations under this lease for
a period of fifteen (15) days after notice of the condition, and such failure
materially and adversely affects Tenant’s use and occupancy of the demised
premises for the conduct of its normal business operations, then Tenant, after
an additional five (5) days’ prior written notice to Landlord, may perform such
maintenance or repair, as the case may be, for the account of Landlord, except
if such performance (i) affects any building systems which do not exclusively
service the demised premises or affects any area outside of the demised
premises which is occupied by another tenant or occupant pursuant to an
agreement with Landlord, or (ii) affects any structural portion of the
Building. Any such maintenance or repair work by Tenant shall be performed in accordance
with all applicable laws, rules and regulations and all applicable provisions
of this lease, including, without limitation, Article 8. Tenant agrees that
such second 5-day day notice shall contain a statement (in bold face type and
capital letters) of Tenant’s intention to exercise its “self-help” rights under
this Article in the event Landlord does not timely comply with its maintenance
or repair obligations hereunder, as the case may be. Tenant will provide
Landlord with proof of Tenant’s maintenance or repair costs and Landlord will
reimburse same within thirty (30) days after receipt of same, with interest at
the Applicable Rate from the date of Tenant’s expenditures to the date
recovered in full by Tenant.

11. DESTRUCTION

          A.
If the premises shall be partially damaged or rendered wholly untenantable by
fire or other casualty and Landlord shall not elect to terminate this lease as
provided below in this Article 11, the damage shall be repaired at the expense
of Landlord. Landlord shall not be required to repair or restore any of
Tenant’s Property or any alteration or leasehold improvement

40

made by or for Tenant at
Tenant’s expense, unless same is covered by Landlord’s casualty insurance for
the building. Tenant shall give Landlord prompt notice of any damage or
destruction to the premises. The rent shall abate in proportion to the portion
of the premises not usable by Tenant until the first to occur of (i) the date
which is ninety (90) days after the date Landlord substantially completes
Landlord’s restoration and repair work hereunder, or (ii) the date Tenant
resumes occupancy of all or part of the demised premises for its business
purposes. Landlord shall not be liable to Tenant for any delay in restoring the
premises, Tenant’s sole remedy being the right to an abatement of rent, as
above provided. If the building shall be so damaged that Landlord shall decide
to demolish it or (if substantially demolished as a result of such fire or
other casualty) to rebuild it (whether or not the premises have been damaged),
Landlord may within ninety (90) days after such fire or other cause give
written notice to Tenant of its election that the term of this lease shall
automatically expire no less than ten (10) days after such notice is given; provided,
however, that in no event may Landlord so terminate this lease unless Landlord
also terminates the leases covering all or substantially all other office space
in the building. Tenant hereby expressly waives the provisions of Section 227
of the Real Property Law and agrees that the provisions of this Article shall
govern and control in lieu thereof.

          B.
Subject to Landlord’s right to cancel this lease pursuant to paragraph A above,
within ninety (90) days after the date of any such fire or other casualty which
renders the demised premises untenantable for the purposes of Tenant’s
permitted use hereunder or which denies Tenant reasonable access to the
premises, Landlord shall deliver to Tenant a statement from a reputable
independent contractor (the “Contractor’s Statement”) setting forth such
contractor’s good faith estimate as to the time required to repair such damage.
If the estimate of the time period exceeds twelve (12) months from the date of
such casualty, Landlord or Tenant may elect to terminate this lease by giving
the other party written notice thereof not later than thirty (30) days after
the receipt of such statement. If such notice is given, the term of this lease
shall expire upon the fifteenth (15th) day after notice of such election
is given, and Tenant shall vacate and surrender the demised premises in its
present “as is” condition upon the expiration of such fifteen (15) day period.
Notwithstanding anything to the contrary contained herein, if (i) either Tenant
shall not have elected to terminate this lease pursuant to the provisions
hereof or Tenant shall not have had the right to terminate this lease pursuant
to the provisions hereof because the estimated time period set forth in the
Contractor’s Statement did not exceed twelve (12) months, and (ii) Landlord
shall have failed to make such repairs on or before the date which is one (1)
month after the estimated time period set forth in the Contractor’s Statement,
then Tenant may elect to terminate this lease by notice given to Landlord
within fifteen (15) Business Days after the expiration of such one (1) month
period. If Tenant makes such election, the term of this lease shall expire on
the fifteenth (15th) day after notice of such election is given by
Tenant, and Tenant shall vacate the demised premises and surrender the same to
Landlord in accordance with the provisions of this paragraph B.

          C.
Notwithstanding anything to the contrary contained herein, in case the building
or the demised premises shall be substantially damaged or destroyed by fire or
other cause at any time during the last twenty-four (24) months of the term of
this lease, then either Landlord or Tenant may cancel this lease upon written
notice to the other party hereto given within sixty (60) days after the date of
such damage or destruction; except, however, that if the damage is of such a
nature that (in the reasonable opinion of a reputable independent contractor
selected by either party) upon the substantial completion of such repair and/or
restoration work, using reasonable

41

diligence, there will be more
than twelve (12) months remaining in the term of this lease (in which case the
exercise of such cancellation right shall be null and void and of no force and
effect, and Landlord shall be obligated to proceed with such restoration and
repair work, as above provided, subject, however to Landlord’s right to cancel
this lease pursuant to the provisions of paragraph A of this Article).

          D.
Notwithstanding anything contained in this lease to the contrary, in the event
this lease is cancelled by either Landlord or Tenant pursuant to the provisions
of this Article, then each party shall retain the proceeds of any casualty
insurance then being maintained by such party.

12. END OF TERM

          Tenant
shall surrender the premises to Landlord at the expiration or sooner
termination of this lease in good order and condition, except for reasonable
wear and tear and damage by fire or other casualty, and Tenant shall remove all
of its personal property, as well as any other alteration or installation which
Tenant is specifically required to remove pursuant to the provisions of Article
8C(ii) of this lease. Tenant agrees that any personal property remaining in the
demised premises following the expiration of the term of this lease (or such
earlier date as of which the term hereof may have been terminated) shall for
all purposes be deemed conveyed to and to be the property of Landlord who shall
be free to dispose of such property, at Tenant’s cost, in any manner Landlord
deems desirable. Landlord may retain or assign any salvage or other residual
value of such property; provided, however, that same shall be offset against
any sums due from Tenant to Landlord for disposing of such property, as set forth
in the immediately succeeding sentence. In consideration of Landlord’s
disposing of such property, Tenant shall reimburse Landlord or pay to Landlord
any cost that Landlord may incur in disposing of such property within ten (10)
days after demand therefor. Tenant shall indemnify and save Landlord harmless
against all costs, claims, loss or liability resulting from delay by Tenant of
more than ninety (90) days in so surrendering the premises, including, without
limitation, any claims made by any succeeding tenant founded on such delay.
Additionally, the parties recognize and agree that other damage to Landlord
resulting from any failure by Tenant timely to surrender the premises will be
substantial, will exceed the amount of monthly rent theretofore payable
hereunder, and will be impossible of accurate measurement. Tenant therefore
agrees that if possession of the premises is not surrendered to Landlord within
one (1) day after the expiration or sooner termination of the term of this
lease, then Tenant will pay Landlord as liquidated damages for each month and
for each portion of any month during which Tenant holds over in the premises
after expiration or termination of the term of this lease, the following
liquidated damages: for the first month or portion of such first month during
which Tenant holds over in the demised premises after expiration or termination
of the term of this lease, a sum equal to one and one-half (1.5) times the
average fixed annual rent and additional rent which were payable per month under
this lease during the last six (6) months of the term thereof; and for any
month or portion of a month after said first month, during which Tenant holds
over in the demised premises after expiration or termination of the term of
this lease, a sum equal to two (2) times the average fixed annual rent and
additional rent which were payable per month under this lease during the last
six (6) months of the term thereof. The aforesaid obligations shall survive the
expiration or sooner termination of the term of this lease. Anything in this
lease to the contrary notwithstanding, the acceptance of any rent shall not
preclude Landlord from commencing and

42

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 232-c
of the Real Property Law of the State of New York and any successor law of like
import. Tenant expressly waives, for itself and for any person claiming through
or under the Tenant, any rights which the Tenant or any such Person may have
under the provisions of Section 2201 of the New York Civil Practice Law and
Rules and of any successor law of like import then in force in connection with
any holdover summary proceedings which the Landlord may institute. Tenant’s
obligations under this paragraph shall survive the expiration or sooner
termination of the term of this lease. At any time during the term of this
lease, Landlord may exhibit the premises to prospective purchasers or mortgagees
of Landlord’s interest therein, or prospective investors, during normal
business hours, upon not less than twenty-four (24) hours’ prior notice to
Tenant (which notice may be given to Tenant orally); provided, however, that
(i) Landlord shall use commercially reasonable efforts to minimize any
interruption of Tenant’s business in the demised premises and (ii) Tenant shall
have the right to have an employee of Tenant accompany Landlord and any of its
prospective purchasers, mortgagees or investors at all times during such
exhibition of the demised premises. During the last year of the term of this
lease, Landlord may exhibit the premises to prospective tenants, during normal
business hours, upon not less than twenty-four (24) hours’ prior notice to Tenant
(which notice may be given to Tenant orally); provided, however, that (i)
Landlord shall use commercially reasonable efforts to minimize any interruption
of Tenant’s business in the demised premises and (ii) Tenant shall have the
right to have an employee of Tenant accompany Landlord and any of its
prospective tenants at all times during such exhibition of the demised
premises.

13. SUBORDINATION AND ESTOPPEL; ETC.

          A.
Tenant has been informed and understands that Landlord’s title arises out of
and by virtue of a sublease (the “Sublease”) from the owner of the lease (the
“Ground Lease”) of the land and the building of which the premises form a part.
A copy of the Ground Lease and the Sublease may be examined at the office of
Landlord at any time during regular business hours upon reasonable advance
notice. Provided and on condition that Landlord shall first obtain and deliver
to Tenant the non-disturbance agreements set forth in paragraph B of this
Article 13, this lease and Tenant’s rights hereunder are and shall be subject
and subordinate to the Ground Lease, the Sublease and all other ground or
underlying leases and subleases and to all mortgages, building loan agreements,
leasehold mortgages, spreader and consolidation agreements and other similar
documents and instruments (individually, a “Superior Interest” and
collectively, “Superior Interests”), which may now or hereafter affect such
leases or subleases or the real property of which the premises form a part and
to all renewals, modifications, consolidations, replacements, extensions,
assignments, spreaders, consolidations and refinancings thereof and to all
advances made or hereafter made thereunder. This Article shall be
self-operative and no further instrument of subordination shall be necessary.
Tenant shall within ten (10) days after written request execute any instrument
in recordable form that Landlord or the holder of any Superior Interest may
reasonably request to confirm such subordination.

          B.
(i) Landlord shall obtain from the sublessor under the Sublease (i.e., Empire
State Building Associates L.L.C.), for the benefit of Tenant, a subordination,
non-disturbance and attornment agreement, substantially in the form attached
hereto and made a part hereof as Exhibit C-1. Landlord shall deliver such
subordination, non-disturbance and attornment

43

agreement to Tenant, executed
by Empire State Building Associates L.L.C. and acknowledged, simultaneously
with the execution and delivery of this lease by Landlord. Tenant shall promptly
execute and deliver any such subordination, non-disturbance and attornment
agreement.

                    (ii)
Landlord shall obtain from the lessor under the Ground Lease (i.e., Empire
State Land Associates L.L.C.), for the benefit of Tenant, a non-disturbance and
attornment agreement, substantially in the form attached hereto and made a part
hereof as Exhibit C-2. Landlord shall deliver such non-disturbance and
attornment agreement to Tenant, executed by Empire State Land Associates L.L.C.
and acknowledged, simultaneously with the execution and delivery of this lease
by Landlord. Tenant shall promptly execute and deliver any such non-disturbance
and attornment agreement.

                    (iii)
As of the date hereof, the real property of which the building forms a part is
encumbered by a certain first mortgage made by Empire State Land Associates
L.L.C. in favor of Capital One, N.A. (“CO”), as successor-in-interest to the
original mortgagee, North Fork Bank. Notwithstanding anything contained in this
lease to the contrary, Landlord shall obtain from CO, for the benefit of
Tenant, a subordination, non-disturbance and attornment agreement,
substantially in the form attached hereto and made a part hereof as Exhibit
C-3. Landlord shall deliver such non-disturbance and attornment agreement to
Tenant, executed by CO and acknowledged, simultaneously with the execution and
delivery of this lease by Landlord. Tenant shall promptly execute and deliver
any such subordination, non-disturbance and attornment agreement.

                    (iv)
Notwithstanding anything contained hereinabove to the contrary, Landlord shall
obtain from the holder of any future Superior Interest, for the benefit of
Tenant, a subordination, non-disturbance and attornment agreement, in the form
then customarily used by it, provided such form is commercially reasonable, but
in any event providing in substance that so long as Tenant is not then in
default under this lease beyond any applicable notice and/or grace period, the
grantor of such subordination non-disturbance and attornment agreement will not
take any action to recover possession of the demised premises, notwithstanding
any foreclosure of the mortgage or termination of the ground or other
underlying lease, as the case may be. Tenant shall promptly execute and deliver
such non-disturbance agreement and shall pay any reasonable attorneys’ fees
incurred by the grantor of such non-disturbance agreement in connection with
the negotiation of such non-disturbance agreement, but not for the mere
preparation or issuance of the non-disturbance agreement.

          C.
Any holder of a Superior Interest may elect that this lease shall have priority
over such Superior Interest and, upon notification by such holder of a Superior
Interest to Tenant, this lease shall be deemed to have priority over such
Superior Interest, whether this lease is dated prior to or subsequent to the
date of such Superior Interest.

          D.
From time to time, Tenant, on fifteen (15) days’ prior written request by Landlord,
time being of the essence, will deliver to Landlord and the holder of any
Superior Interest a statement in writing (upon which any person to whom it is
addressed or certified may rely) certifying that this lease is unmodified and
is in full force and effect (or if there have been modifications, that the same
is in full force and effect as modified and identifying the modifications) and
the dates to which the rent and other charges have been paid, the amounts of

44

fixed annual and additional
rents, stating the date of expiration of the term hereof and whether any
renewal option exists (and if so, the terms thereof), stating whether, to
Tenant’s best knowledge, any defense or counterclaim to the payment of any rent
exists, whether any allowance or work is due to Tenant from Landlord, stating
whether or not, to Tenant’s best knowledge, Landlord is in default in
performance of any covenant, agreement or condition contained in this lease
and, if so, specifying each such default of which Tenant may have knowledge,
stating whether any bankruptcy case has been commenced with respect to Tenant,
and containing such other information as the holder of any Superior Interest
may reasonably request.

          E.
If, in connection with obtaining, continuing or renewing financing or
refinancing for the building and/or the land, the lender shall request that
Tenant give notices of any defaults by Landlord to such lender as a condition
to such financing or refinancing, Tenant will not unreasonably withhold, delay
or defer its consent thereto.

          F.
If any act or omission by Landlord shall give Tenant the right, immediately or
after the lapse of time, to cancel or terminate this lease or to claim a
partial or total eviction, Tenant shall not exercise any such right until: (a)
it shall have given written notice of such act or omission to each holder of
any Superior Interest of which it has written notice, and (b) a reasonable
period for remedying such act or omission shall have elapsed following such
notice (which reasonable period shall be equal to the period to which Landlord
would be entitled under this lease to effect such remedy, plus an additional
thirty (30) day period), provided such holder or lessor shall, with reasonable
diligence, give Tenant notice of its intention to remedy such act or omission
and shall commence and continue to act upon such intention.

14. CONDEMNATION

          A.
In the event that the whole of the demised premises shall be lawfully condemned
or taken in any manner for any public or quasi-public use or purpose, this lease
and the term and estate hereby granted shall forthwith cease and terminate as
of the date of vesting of title (hereinafter referred to as the “date of
taking”), and Tenant shall have no claim against Landlord for, or make any
claim for, the value of any unexpired term of this lease, and the rent and
additional rent shall be apportioned as of such date.

          B.
In the event that any part of the demised premises shall be so condemned or
taken, then this lease shall be and remain unaffected by such condemnation or
taking, except that the rent and additional rent allocable to the part so taken
shall be apportioned as of the date of taking, provided, however, that Tenant
may elect to terminate this lease in the event more than twenty-five (25%)
percent of the demised premises should be so condemned or taken, provided such
notice of election is given by Tenant to Landlord not later than thirty (30)
days after the last to occur of (i) the date when title shall vest in the
condemning authority, and (ii) the date Landlord notifies Tenant of such
condemnation or taking. Landlord shall promptly give Tenant copies of any
notice received from the condemning authority in connection with any proposed
condemnation and as to vesting. Upon the giving of a notice of termination,
this lease shall terminate on the thirtieth day following the date of such
notice and the rent and additional rent shall be apportioned as of such
termination date. Upon such partial taking and this lease continuing in force
as to any part of the demised premises, the rent and additional rent shall be

45

diminished by an amount
representing the part of said rent and additional rent properly applicable to
the portion or portions of the demised premises which may be so condemned or
taken. If as a result of the partial taking (and this lease continuing in force
as to the part of the demised premises not so taken), any part of the demised
premises not taken is damaged, Landlord agrees with reasonable promptness to
commence the work necessary to restore the damaged portion to the condition
existing immediately prior to the taking, and prosecute the same with
reasonable diligence to its completion. In the event Landlord and Tenant are
unable to agree as to the amount by which the rent and additional rent shall be
diminished, the matter shall be determined by arbitration in New York City.

          C.
Nothing herein provided shall preclude Tenant from appearing, claiming, proving
and receiving in the condemnation proceeding, Tenant’s moving expenses, and the
value of Tenant’s fixtures, or Tenant’s alterations, installations and
improvements (to the extent, only, paid for by Tenant and not reimbursed by
Landlord or by insurance), which do not become part of the building, or
property of Landlord; or, in the case of temporary taking, so long as rent
hereunder is paid to Landlord, Tenant may make a claim for rental value and
damages to the demised premises (which are of a nature that Tenant is obligated
hereunder to repair same) or damages to Tenant’s furniture and fixtures.

          D.
In the event that only a part of the demised premises shall be so taken and
Tenant shall not have elected to cancel this lease as above provided, the
entire award for a partial taking shall be paid to Landlord, and Landlord, at
Landlord’s own expense, shall restore the unaffected part of the building to
substantially the same condition and tenantability as existed prior to the
taking.

          E.
Until said unaffected portion is restored, Tenant shall be entitled to a
proportionate abatement of rent for that portion of the premises which is being
restored and is not usable until the completion of the restoration or until the
said portion of the premises is used by Tenant, whichever occurs sooner. Said
unaffected portion shall be restored within a reasonable time but not more than
seventy-five (75) days after the taking; provided, however, if Landlord is
delayed by strike, lockout, the elements, or other causes beyond Landlord’s
control, the time for completion shall be extended for a period equivalent to
the delay. Should Landlord fail to complete the restoration within the said
seventy-five (75) days or the time as extended, Tenant may elect to cancel this
lease and the term hereby granted provided such notice of election is given by
Tenant to Landlord not later than thirty (30) days after the end of said
seventy-five (75) days of time or the time as extended.

15. REQUIREMENTS OF LAW

          A.
(i) Tenant at its expense shall comply with all laws, orders and regulations of
any governmental authority having or asserting jurisdiction over the demised
premises (whether any such law, order or regulation is in effect on, or enacted
or made effective after, the date hereof, whether contemplated or foreseen on
the date hereof or not), which shall impose any violation, order or duty upon
Landlord or Tenant with respect to the demised premises or the use or occupancy
thereof.

46

                    (ii)
The foregoing shall not require Tenant to do any alteration or structural work,
except that Tenant shall: (a) perform, at its sole cost and expense, work that
may become necessary by reason of any Tenant installation, alteration,
improvement or work; (b) perform, at its sole cost and expense, work that my
become necessary by reason of Tenant’s particular manner of use of the demised
premises (as distinguished from general and executive office use thereof), and
(b) reimburse Landlord for the cost of performing structural repairs or
alterations required by the negligence or willful misconduct of Tenant, its
agents, employees or contractors (subject, however, to Article 42E of this
lease).

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

          C.
Tenant at its expense shall comply with all requirements of the New York Board
of Fire Underwriters, or any other similar body affecting the premises and
shall not use the premises in a manner which shall increase the rate of fire
insurance of Landlord or of any other tenant, over that in effect prior to this
lease. Notwithstanding the foregoing, it is acknowledged and agreed that mere
office use will not so increase such fire insurance rates. If Tenant’s use of
the premises increases the fire insurance rate, Tenant shall reimburse Landlord
for all such increased costs. That the premises are being used for the purpose
set forth in Article 1 hereof shall not relieve Tenant from the foregoing
duties, obligations and expenses.

          D.
Landlord shall comply, at its sole cost and expense, with all laws, rules and
regulations which are applicable to the demised premises and which are not the
obligation of Tenant under this lease or under the law. Landlord shall also
comply, at its sole cost and expense, with all laws, rules and regulations
which are applicable to the building and which are not the obligation of Tenant
hereunder or under the law, but only to the extent that such compliance is
necessary for Tenant’s continued use of, or access to, the demised premises for
the purposes permitted under this lease.

16. CERTIFICATE OF OCCUPANCY

          Tenant
will at no time use or occupy the premises in violation of any certificate of
occupancy issued for or statute governing the use of the building. A true and
correct copy of the certificate of occupancy issued for the building as of the
date of this lease is attached hereto and made a part hereof as Exhibit F.
Landlord will make no changes in the building which would result in a change in
the certificate of occupancy which prevents Tenant from using the demised
premises for the purposes specified in this lease or which would reduce the
number of occupants on any floor comprising the demised premises.

17. POSSESSION

          If
permission is given to Tenant to occupy the demised premises or other premises
prior to the date specified as the commencement of the term, such occupancy
shall be deemed to be pursuant to the terms of this lease, except that the
parties shall separately agree as to the obligation of Tenant to pay rent for
such occupancy. The provisions of this Article are intended to constitute an
“express provision to the contrary” within the meaning of Section 223(a), New

47

York Real Property Law.
Landlord represents that, as of the date of this lease, the demised premises
are vacant and is not subject to any lease or other occupancy agreement.

18. QUIET ENJOYMENT

          Landlord
covenants that if and so long as this lease is in full force and effect, Tenant
may peaceably and quietly enjoy the demised premises, subject to the terms,
covenants and conditions of this lease and to the Ground Lease, the Sublease
and other Superior Interests.

19. RIGHT OF ENTRY

          A.
(i) Tenant shall permit Landlord to erect and maintain pipes and conduits in
and through the premises, provided same are located within the walls, below the
floor or above the ceiling of the demised premises; and provided, further, that
same do not reduce the cubic area of the demised premises (other than by a de
minimis amount). Landlord or its agents shall have the rights: to enter or pass
through the premises at all times, in the presence of a representative of
Tenant, upon at least 24-hours’ prior notice (which may be given to Tenant
orally), except in an emergency (in which case and only in such case (a) no
such notice shall be required, (b) Tenant’s representative need not be present,
(c) Landlord may enter the demised premises by master key, by reasonable force
or otherwise, and (d) Landlord shall give Tenant such notice of entry as may be
feasible under such emergency circumstances, which, if not given before such
entry by Landlord or its agents, shall be given as soon as reasonably
practicable thereafter), to examine the same, to make such repairs,
installations, improvements, alterations or additions to the building (but not
the demised premises, except to the extent provided in the first sentence of
this Article) or to make repairs to the demised premises, as may be required by
this lease or by law or as Landlord may deem necessary, and to take into the
premises (but in no event to store overnight therein) all material that may be
used in connection with any such repair, installation, improvement, alteration
or addition work. Landlord shall repair any damage to the demised premises
resulting from any entry or work pursuant to this paragraph A, and shall
restore the demised premises to the condition existing immediately prior to
such entry or work, reasonable wear and tear and damage by fire or other
casualty excepted. Subject to the provisions of Article 22D hereof, such entry
or work in connection with any such repair, installation, improvement,
alteration or addition shall not constitute an eviction (whether actual or
constructive) of Tenant in whole or in part or breach of the covenant of quiet
enjoyment, shall not be grounds for any abatement of rent, and shall not impose
any liability on Landlord to Tenant by reason of inconvenience or injury to
Tenant’s business or to the demised premises. Landlord shall nevertheless use
commercially reasonable efforts to effect such entry or work in a manner that
minimizes any interference with Tenant’s business operations in the demised
premises; it being understood and agreed, however, that such entry or work may
be effected on Business Days during Business Hours, unless (a) such entry or
work (1) results in a denial of any reasonable means access to the demised
premises or use of the demised premises for the conduct of Tenant’s business in
the normal course thereof or (2) imminently threatens the health or safety of
any authorized occupant of the demised premises; or (b) Tenant shall request
that Landlord perform the work on an overtime or premium basis and Tenant shall
agree to reimburse Landlord for the cost of same, in which event Tenant shall
pay to Landlord, within thirty (30) days after demand therefor, an amount equal
to the difference between overtime or premium pay rates and the regular pay
rates for performing such work.

48

                    (ii)
Notwithstanding anything contained hereinabove to the contrary, with respect to
any such entry or work which is solely for the benefit of another tenant, (a)
Landlord shall provide Tenant with reasonable written notice of same, which
notice shall contain a reasonably detailed description of such work; (b)
Landlord shall perform such work only outside of Business Hours, and shall pay
any overtime or premium pay rates associated therewith, including any
reasonable out-of-pocket costs incurred by Tenant if Tenant reasonably chooses
to retain guards or employees to secure the demised premises; and (c) shall repair
any damage to the demised premises caused thereby, and restore the demised
premises to the condition existing immediately prior to such work, reasonable
wear and tear and damage by fire or other casualty excepted.

          B.
Landlord shall have the right at any time, without the same constituting an
actual or constructive eviction, and without incurring any liability to Tenant,
to change the arrangement and/or location of public entrances or public
passageways, public windows, public corridors, elevators, stairs, public or
core toilets, or other public parts of the building, provided such change does
not adversely affect (other than to a de minimis extent) Tenant’s use of or
access to the demised premises. Landlord shall also have the right at any time,
without the same constituting an actual or constructive eviction, and without
incurring any liability to Tenant, to change the name or number by which the
building is known, provided that Landlord shall reimburse Tenant for the
reasonable out-of-pocket cost to Tenant of reprinting its stationery, business
brochures and business cards due to same (if necessary).

20. VAULT SPACE

          Anything
contained in any plan or blueprint to the contrary notwithstanding, no vault or
other space not within the building property line is demised hereunder. Any use
of such space by Tenant shall be deemed to be pursuant to a license, revocable
at will by Landlord, without diminution of the rent payable hereunder. If
Tenant shall use such vault space, any fees, taxes or charges made by any
governmental authority for such space shall he paid by Tenant.

21. INDEMNITY

          A.
Tenant shall indemnify, defend and save Landlord and any of the other Landlord
Parties (as hereinafter defined) harmless from and against any liability or
expense arising from (i) the negligence or willful misconduct of Tenant, its
agents, employees or contractors and (ii) any certification made by any
architect or engineer retained by or on behalf of Tenant to any governmental
authority (as well as any certification also executed or submitted by Landlord)
in connection with any alteration or improvement to the demised premises.
Nothing contained in this paragraph A shall be construed to absolve Landlord or
any person claiming through or under Landlord to the extent of their respective
negligence or willful misconduct. The term “Landlord Parties” when used herein
shall mean Landlord, its agents, officers, directors, shareholders, partners,
members, managers, principals, employees and tenants in common (whether
disclosed or undisclosed). If any claim, action or proceeding is brought
against any of the Landlord Parties for a matter covered by this indemnity,
Tenant, upon notice from the indemnified person or entity, shall defend such
claim, action or proceeding with counsel reasonably satisfactory to Landlord
and the indemnified person or entity (it being agreed that counsel for Tenant’s
insurance company shall be acceptable for such purposes).

49

          B.
Landlord shall indemnify, defend and save Tenant and any of the other Tenant
Parties (as hereinafter defined) harmless from and against any liability or
expense arising from the negligence or willful misconduct of Landlord, its
agents, employees or contractors. Nothing contained in this paragraph B shall
be construed to absolve Tenant or any person claiming through or under Tenant
to the extent of their respective negligence or willful misconduct. The term
“Tenant Parties” when used herein shall mean Tenant, its agents, officers,
directors, shareholders, partners, members, managers, principals, employees and
tenants in common (whether disclosed or undisclosed). If any claim, action or
proceeding is brought against any of the Tenant Parties for a matter covered by
this indemnity, Landlord, upon notice from the indemnified person or entity,
shall defend such claim, action or proceeding with counsel reasonably
satisfactory to Tenant and the indemnified person or entity (it being agreed
that counsel for Landlord’s insurance company shall be acceptable for such
purposes).

          C.
The provisions of this Article 21 shall survive the expiration or sooner
termination of the term of this lease and are subject to the waivers of
subrogation set forth in Article 42E of this lease.

22. LANDLORD’S LIABILITY; RENT ABATEMENTS

          A.
(i) If, by reason of (a) strike, (b) labor troubles, (c) governmental
pre-emption in connection with a national emergency, (d) any rule, order or
regulation of any governmental agency, (e) conditions of supply or demand, (f)
conditions affected by, or actions taken by Landlord or others reasonably
intended to assure the health, security or safety of the building or any person
in response to, war, any act of terrorism or violence (even if not directed at
the building or any occupant thereof), or other national, state or municipal
emergency (whether or not officially proclaimed by any governmental authority)
or (g) any other cause beyond Landlord’s control, Landlord does not fulfill any
obligation under this lease (other than any obligation for the payment of
money) or shall be unable to supply any service which Landlord is obligated to
supply, this lease and Tenant’s obligation to pay rent hereunder shall in no
wise be affected, impaired or excused, except as otherwise provided herein. As
Landlord shall learn of the happening of any of the foregoing conditions,
Landlord shall promptly notify Tenant of such event and, if ascertainable, its
estimated duration, and will proceed promptly and diligently with the
fulfillment of its obligations as soon as reasonably possible.

                    (ii)
If, by reason of (a) strike, (b) labor troubles, (c) governmental pre-emption
in connection with a national emergency, (d) any rule, order or regulation of
any governmental agency, (e) conditions of supply or demand, (f) conditions
affected by, or actions taken by Tenant or others reasonably intended to assure
the health, security or safety of the demised premises or any person in
response to, war, any act of terrorism or violence (even if not directed at the
demised premises or any occupant thereof), or other national, state or
municipal emergency (whether or not officially proclaimed by any governmental
authority) or (g) any other cause beyond Tenant’s control, Tenant does not
fulfill any obligation under this lease (other than any obligation for the
payment of money), this lease shall in no wise be affected, impaired or excused
and Tenant shall not be deemed in default as a result thereof. As Tenant shall
learn of the happening of any of the foregoing conditions, Tenant shall
promptly notify Landlord of such

50

event and, if ascertainable,
its estimated duration, and will proceed promptly and diligently with the
fulfillment of its obligations as soon as reasonably possible.

          B.
Except as otherwise provided herein, this lease and the obligations of Tenant
hereunder shall in no way be affected because Landlord is unable to fulfill any
of its obligations or to supply any service (e.g., heat, electricity, air
conditioning, cleaning (if Landlord is obligated hereunder to furnish any of
the same), elevators, water), by reason of any of the causes set forth in
subparagraph A(i) above. Landlord shall have the right, upon reasonable prior
notice to Tenant (except in an emergency), without incurring any liability to
Tenant, to stop any service because of accident or emergency, or for repairs,
alterations or improvements, necessary or desirable in the judgment of Landlord
to the building or the demised premises, until such repairs, alterations or
improvements shall have been completed. Such notice may be oral or may be a
written notice either sent by e-mail or hand delivered to the demised premises,
and shall provide the reason for, and estimated duration of, such stoppage.
Neither Landlord nor any other Landlord Party, shall be liable to Tenant or
anyone else, for any loss or damage to person, property or business, unless due
to the negligence or willful misconduct of Landlord. Neither Landlord nor any
other Landlord Party shall be liable for any damage to property of Tenant or of
others entrusted to employees of the building nor for the loss of or damage to
any property of Tenant by theft or otherwise. Landlord or its agents shall not
be liable for any injury or damage to persons or property resulting from fire,
explosion, falling ceilings, falling plaster, steam, gas, electricity, water,
rain or snow or leaks from any part of said building or from the pipes,
appliances or plumbing works or from the roof, street or subsurface or from any
other place or by dampness or by any other cause of whatsoever nature,
including but not limited to the making or repairs and improvements, unless
caused by or due to the negligence or willful misconduct of Landlord, its
agents, servants or employees; nor shall Landlord or its agents be liable for
any such damage caused by other tenants or persons in said building or caused
by operations in construction of any private, public or quasi public work.
Tenant shall give prompt notice to Landlord in case of fire or accidents in the
demised premises or in the building or of defects therein or in any fixtures or
equipment. TENANT AGREES TO LOOK SOLELY TO LANDLORD’S ESTATE AND INTEREST IN
THE LAND AND BUILDING, OR THE LEASE OF THE BUILDING OR OF THE LAND AND
BUILDING, AND THE DEMISED PREMISES, INCLUDING THE PROCEEDS THEREOF, FOR THE
SATISFACTION OF ANY RIGHT OR REMEDY OF TENANT FOR THE COLLECTION OF A JUDGMENT
(OR OTHER JUDICIAL PROCESS) REQUIRING THE PAYMENT OF MONEY BY LANDLORD, IN THE
EVENT OF ANY LIABILITY BY LANDLORD, AND NO OTHER PROPERTY OR ASSETS OF LANDLORD
SHALL BE SUBJECT TO LEVY, EXECUTION OR OTHER ENFORCEMENT PROCEDURE FOR THE
SATISFACTION OF TENANT’S REMEDIES UNDER OR WITH RESPECT TO THIS LEASE, THE
RELATIONSHIP OF LANDLORD AND TENANT HEREUNDER, OR TENANT’S USE AND OCCUPANCY OF
THE DEMISED PREMISES OR ANY OTHER LIABILITY OF LANDLORD TO TENANT (EXCEPT FOR
GROSS NEGLIGENCE, IN WHICH CASE TENANT MAY ALSO LOOK TO THE PROCEEDS OF ANY
INSURANCE CARRIED BY LANDLORD IF NOT PAYABLE UNDER INSURANCE TO BE MAINTAINED BY
TENANT PURSUANT TO THE TERMS HEREOF).

          C.
LANDLORD AND ITS AGENTS ARE HEREBY RELEASED FROM AND SHALL NOT BE LIABLE FOR
ANY DAMAGES TO PERSONS OR PROPERTY

51

RESULTING FROM OR INCIDENTAL TO
ANY TERRORIST ATTACK NOTWITHSTANDING ANY ACT OR OMISSION OF ANY ACCESS CONTROL
OR SECURITY GUARD PERSONNEL THAT LANDLORD MAY FROM TIME TO TIME EMPLOY IN THE
BUILDING TO CONTROL ACCESS TO THE BUILDING OR TO DETER UNLAWFUL ACTIVITY.

          D.
(i) Notwithstanding anything contained in this lease to the contrary, (a) if as
a result of any repair, alteration, addition or improvement to the building by
or on behalf of Landlord, or (b) the failure of Landlord to make any repair or
to provide any service to the demised premises which Landlord is obligated to
make or provide (as the case may be) under this lease (except if such failure
is due to any of the causes set forth in subparagraph A(i) of Article 22 of
this lease, or a failure by the public utility to provide such service to the
building, to the extent such service is not otherwise reasonably available),
Tenant and its employees cannot and do not use (except on an emergency basis)
all or any portion of the demised premises for the normal conduct of its
business (or for the performance of Tenant’s Initial Installation Work, as the
case may be), for a period of three (3) consecutive Business Days, then Tenant
shall be entitled to an abatement of all rent and additional rent for each day
after such three (3) business day period for such portion of the demised premises
which cannot be used as set forth above.

                    (ii)
Notwithstanding anything contained in this lease to the contrary, if as a
result of the failure of Landlord to make any repair or to provide any service
to the demised premises which Landlord is obligated to make or provide (as the
case may be) under this lease, which failure is due to any of the causes set
forth in subparagraph A(i) of Article 22 of this lease, or a failure by the
public utility to provide such service to the building (but is not due to any
of the causes set forth in subparagraph (i) above), Tenant and its employees
cannot and do not use (except on an emergency basis) all or any portion of the
demised premises for the normal conduct of its business (or for the performance
of Tenant’s Initial Installation Work, as the case may be), for a period of ten
(10) consecutive days, then Tenant shall be entitled to an abatement of all
rent and additional rent for each day after such ten (10) day period for such
portion of the demised premises which cannot be used as set forth above.

23. CONDITION OF PREMISES; LANDLORD’S WORK; TENANT’S INITIAL INSTALLATION WORK; ETC.

          A.
Tenant expressly acknowledges that it has inspected the demised premises and
agrees to accept the demised premises in their “as is” condition, subject to
Landlord’s obligation to perform Landlord’s Work pursuant to paragraph B of
this Article and the Building Improvement Work pursuant to paragraph D of this
Article. Tenant acknowledges that Landlord (i) has made no representation
respecting the physical condition of the demised premises and (ii) shall have
no obligation to do any work in and to the demised premises in order to make
them suitable and ready for occupancy and use by Tenant, except as otherwise specifically
provided in this Article.

          B.
Landlord, at its expense, shall effect the following work (“Landlord’s Work”)
to prepare the demised premises for Tenant’s use and occupancy and as a
condition precedent to the

52

Commencement Date (except for
the work set forth in the second sentence of clause (ii) below, which may not
occur until after the Commencement Date):

                    (i)
Landlord shall (a) perform demolition work in the demised premises, including
removal of ceiling, ductwork, lighting and flooring, so as to create a “slab to
slab” condition in the demised premises, (b) perform all work necessary to
cause all columns, ceilings and core and shell walls in the demised premises to
be repaired or laminated, taped and spackled, as necessary, and ready for paint
and wall coverings, and (c) perform all work which is necessary to separately
demise the 15th Floor Portion in accordance with the space diagram
of the 15th Floor Portion which is included in Exhibit A hereto.
Landlord agrees that upon the completion of such work the demised premises
shall be in “white box” condition, substantially similar to the condition of
the 32nd floor of the building as of the Effective Date and
consistent with the building’s standard “white box” specifications attached
hereto and made a part hereof as Exhibit I.

                    (ii)
Landlord shall perform all work necessary to remove all asbestos from the
demised premises (other than in shafts that run through steam and chilled water
risers), and will obtain and provide to Tenant a duplicate original counterpart
of a Form ACP-5 and/or ACP-7 (as appropriate) for the demised premises. If,
during the performance of Tenant’s Initial Installation Work, Tenant discovers
any asbestos containing materials in the shafts that run through steam and
chilled water risers or any other risers or shafts, whether within or outside
the demised premises, Landlord shall promptly remove such asbestos containing
materials at Landlord’s sole cost and expense. Tenant shall reasonably
cooperate with Landlord in connection with any such asbestos abatement work,
including, without limitation, by providing Landlord and its contractors with
such access to the demised premises as is reasonably necessary for the
performance of such work. Landlord shall use commercially reasonable efforts to
perform such work in a manner which minimizes any interference with the
performance of Tenant’s Initial Installation Work; it being understood and
agreed, however, that any such work may be performed on Business Days during
Business Hours.

                    (iii)
Landlord shall effect all work necessary to provide Tenant with adequate points
of connection to the building’s Class E fire alarm system (but in no event
fewer than ten (10) such points), in a location in the “T” stairwell on either
the 13th floor or the 16th floor of the building, so that
Tenant may connect the fire alarm system for the demised premises to such
building system. Landlord agrees that the building’s Class E fire alarm system
shall have capacity for direct connection to all required tenant fire alarm
systems (including strobes, loudspeakers, sprinkler, alarm and supervisory
devices, etc.) and equipment control and status reporting points on each floor
on which the demised premises are located, without the need for a separate
tenant subsystem.

                    (iv)
Landlord shall perform all work necessary to make the existing electrical
distribution panels on the 14th and 15th floors of the
building available to Tenant, for Tenant’s electricity supply in the demised
premises (the capacity of which is more particularly described in Article
3C(iii) of this lease).

53

                    (v)
Landlord shall (a) replace all convector covers and grills for all existing
radiators in the demised premises, so that same are primed, ready for painting
and in working order; and (b) perform all work necessary to cause such existing
radiators to be in working order.

                    (vi)
Landlord shall effect all work necessary to provide a standpipe connection to
the building’s sprinkler system, in a location on each of the 14th
and 15th floor of the building designated by Landlord, so that
Tenant may provide sprinkler service in the demised premises. Tenant, as part
of Tenant’s Initial Installation Work, shall effect all work necessary to
distribute such sprinkler service throughout the demised premises.

                    (vii)
Landlord shall perform all other work in and to the demised premises so that
such space may be delivered to Tenant in compliance with all applicable laws,
rules and regulations and free of any violations of record.

                    (viii)
Landlord shall perform all work necessary to cause the floor to be smooth and
reasonably level in accordance with industry standard and the building’s
standard “white box” specifications referred to in clause (i) above, so that it
is ready for the application of floor covering (and so that such floor is in
substantially similar condition to the floor on the 32nd floor of the
building as of the Effective Date).

                    (ix)
Landlord shall effect all work necessary to cause the elevator call buttons,
lanterns, doors (including all hardware thereon) and service closets in the
demised premises or which service the demised premises (whether or not in the
demised premises) to comply with the requirements of the ADA.

                    (x)
Landlord shall replace or repair any missing or damaged steel as a result of
the above demolition and shall replace and reinstall fireproofing on same.

Landlord shall perform
Landlord’s Work in a good and workerlike manner, and in a prompt and
expeditious fashion after this lease has been executed and delivered by
Landlord and Tenant. Not more than seven (7) Business Days, nor less than four
(4) Business Days, prior to the date Landlord anticipates that Landlord’s Work
in the demised premises will be substantially completed, Tenant, at Landlord’s
request, will inspect the demised premises and Landlord’s Work, together with
Landlord, and will advise Landlord of any incomplete items for which Landlord
is responsible under paragraph B above (without prejudice to Tenant notifying
Landlord after the Commencement Date (i.e., by Punch List Notice) of any
additional punch list items which Tenant desires Landlord to complete).

          C.
(i) Tenant, at its expense (except as provided in subparagraph (iii) below),
shall perform all other work (“Tenant’s Initial Installation Work”) in and to
the demised premises as is necessary for Tenant to conduct its business
therein, and in order to make such space suitable and ready for Tenant’s
initial occupancy and use. Tenant shall perform Tenant’s Initial Installation
Work in a prompt and expeditious manner following the Commencement Date, in
accordance with the provisions of Article 8, this Article and all other
applicable provisions of this lease, and in compliance with all applicable
laws, rules and regulations.

54

                    (ii)
Tenant shall submit to Landlord for Landlord’s approval (which approval shall
not be unreasonably withheld, conditioned or delayed with respect to
nonstructural interior alterations which do not adversely affect the proper
functioning of utility services, plumbing and electrical lines or other systems
of the building), a full set of architectural and engineering plans and
specifications (including architectural plans and specifications comprised of
partition plans, reflected ceiling plans as well as air conditioning, heating
and all other mechanical drawings and electric plans) in form suitable for
filing with the appropriate agencies of the City of New York to obtain such
alteration or building permit to perform Tenant’s Initial Installation Work. If
Landlord withholds its approval of the plans and specifications (in accordance
with the foregoing), Landlord shall specify in reasonable detail the basis for
withholding such approval and Tenant shall make appropriate modifications to
the plans and specifications to correct or eliminate the objections specified
by Landlord in such disapproval and shall resubmit the modified plans and
specifications to the Landlord within a reasonable period of time after they
are returned to Tenant unapproved. If Landlord fails to respond to any such
request for approval within ten (10) days after Landlord’s receipt of such
plans and specifications, Tenant may send Landlord a second request for
approval of such plans and specifications. If Landlord fails to respond to such
second request for approval within five (5) Business Days after its receipt of
same, then Landlord shall be deemed to have approved such plans and
specifications (provided such second request specifies in bold faced type and
capital letters that Landlord shall be deemed to have approved such plans and
specifications if it fails to respond to such second request within such five
(5) business day period). The terms and provisions set forth in this
subparagraph (ii) governing the approval and disapproval of plans and
specifications shall apply equally to approving and disapproving revised plans
and specifications and all change orders. No work may be performed without
Landlord’s prior approval of the plans and specifications and all contractors
and sub-contractors engaged to perform Tenant’s Initial Installation Work. No
such work shall be commenced without the plans and specifications therefor
having been approved by Landlord and the appropriate permits and approvals
therefor having been issued by the City of New York Department of Buildings and
any other governmental agency having jurisdiction thereof. Approval by Landlord
of any plans or specifications shall not be deemed to constitute a warranty or
representation that such plans or specifications shall conform to applicable
laws and regulations or shall be approved by the Department of Buildings or any
other governmental agency. At Tenant’s request, Landlord shall execute all
required permit applications and other forms upon submission of Tenant’s plans
and specifications by Tenant but prior to Landlord’s review of same, but execution
of such forms by Landlord shall not constitute approval of the alterations in
question.

          (iii)
Landlord shall provide Tenant an allowance of up to Five Million Nine Hundred
Ninety-Eight Thousand Three Hundred and 00/100 ($5,998,300.00) Dollars to
defray the cost of construction of any Tenant’s Initial Installation Work which
is performed prior to the second anniversary of the Commencement Date. Such sum
(“Landlord’s Contribution”) shall be payable (as hereinafter provided) against
requisitions therefor accompanied by (a) the certification of Tenant’s
architect that the work described on such requisition has been completed
substantially in accordance with the plans and specifications theretofore
approved by Landlord, (b) a list specifying the work performed for which such
requisition is being submitted and (c) partial conditional waivers of mechanics
liens for all work for which such installment of Landlord’s Contribution has
been requisitioned, and partial unconditional waivers of mechanics

55

liens for all work for which
payments were made by Landlord with respect to previous requisitions, from each
contractor, sub-contractor, vendor and supplier of labor and material for whom
and to the extent such installment of Landlord’s Contribution is being
requisitioned; it being agreed, however, that Tenant shall not be required to
submit such lien waivers for any such contractor, sub-contractor, vendor or
supplier performing work or providing materials the cost of which shall be less
than $10,000.00. Payments on account of Landlord’s Contribution shall not be
payable more frequently than monthly. Each such installment of Landlord’s
Contribution shall be equal to (1) the total amount of Landlord’s Contribution
requisitioned by Tenant as of the date of the most recent requisition
(including the amount of the most recent requisition), less (2) the total
amount of Landlord’s Contribution paid to Tenant as of the date the most recent
requisition. To illustrate such calculation, and assuming, for example, that
the total of all requisitions submitted by Tenant (including the most recent
requisition) is $100,000, of which $50,000 has been paid to Tenant, and $50,000
is the unpaid amount of the most recent requisition, then the amount of such
installment shall be $50,000, calculated as follows: (1) $100,000, less (2)
$50,000, equals $50,000. Notwithstanding anything contained herein to the
contrary, no portion of Landlord’s Contribution shall be applied by Tenant
against expenses for furniture, office equipment or other personal property,
and not more than $899,745.00 may be applied by Tenant for architectural and
engineering fees or other soft costs relating to Tenant’s Initial Installation
Work (which payments of Landlord’s Contribution for such architectural and
engineering fees and other soft costs shall be made by Landlord upon Tenant’s
submission of invoices therefor (whether before or after the Commencement Date)
which have been approved for payment by an officer of Tenant, anything
contained herein to the contrary notwithstanding). Any dispute regarding
Landlord’s Contribution shall be resolved by expedited arbitration in
accordance with the provisions of Article 41 of this lease. In the event that
any such dispute shall be resolved in Tenant’s favor so that Landlord shall
obligated to pay Tenant all or any part of Landlord’s Contribution, but
Landlord fails to do so within fifteen (15) days after such decision is
rendered in such arbitration proceeding, then Tenant shall be entitled to a
rent credit (i.e., Tenant may offset such amount due Tenant against rent) in
the amount of the portion of Landlord’s Contribution which Landlord has failed
to pay Tenant (within such fifteen (15) day period) in accordance with the
decision in such arbitration proceeding, with interest at the Applicable Rate
from the date such sums were to have been reimbursed or paid to Tenant from
Landlord’s Contribution until the date recovered in full by Tenant, and with
all reasonable legal fees incurred by Tenant in connection with such dispute
(provided Tenant furnishes Landlord with paid invoices or other reasonably
sufficient evidence of such fees). Such rent credit shall be applied, until
fully depleted, against the next fixed annual rent payable under this lease.

                    (iv)
Notwithstanding anything contained herein to the contrary, Tenant shall
maintain, at Tenant’s expense, in addition to any other insurance required
pursuant to this lease with respect to alterations, a Builders “All Risk”
insurance policy (Broad Form) covering the full replacement cost of Landlord’s
Work and Tenant’s Initial Installation Work and the materials and supplies
delivered and stored in the demised premises for the purpose of being
incorporated in such work.

                    (v)
Notwithstanding anything contained herein to the contrary, Tenant shall deliver
to the Landlord final record drawings of the Tenant Initial Installation Work,
including, as may be pertinent to the work performed, a reflected ceiling plan,
mechanical and electrical

56

drawings, partition plan and
any other drawings which may be required to indicate accurately the layout and
systems of the demised premises. Tenant shall require its architect to load and
maintain such record plans on a CADD system and to deliver diskettes or other
medium suitable for Landlord’s needs and compatible, if feasible, with
Landlord’s computer applications, so as to enable Landlord to use such
CADD-saved plans.

                    (vi)
Landlord shall, at request of Tenant, schedule the building’s freight elevator
(or a passenger elevator converted for use as a freight elevator) for Tenant’s
move into the demised premises after 6:00 p.m. and before 7:00 a.m. (which may
be effected on Business Days or on weekends). Such use shall be subject to a
prior reservation by some other tenant and or the need by Landlord for the use
of such elevator for other operating or construction purposes. Notwithstanding
anything contained herein to the contrary, in connection with Tenant’s Initial
Installation Work and initial move-in, it is agreed that Tenant shall not be
required to pay for the first fifty (50) hours of such freight elevator use on
an after hours basis.

                    (vii)
It is acknowledged and agreed that Tenant, at its expense (except as hereinabove
provided) and as part of Tenant’s Initial Installation Work, shall provide, and
shall effect all work (the “A/C Work”) necessary to install, new water cooled
air-conditioning units for the demised premises (the “A/C Units”), with a total
cooling capacity of at least two hundred five (205) tons (with at least 120
tons for the 14th Floor Portion and at least 85 tons for the 15th
Floor Portion), each of which units shall be of equal or better quality to the
current building standard air-conditioning unit, the Petra Engineering
Industries Co., Model PAHHC62C2. The A/C Work shall include, without
limitation, (a) the connection of the A/C Units to the building chilled water
and warm water circulating system described in Article 24C hereof, and (b) all
work necessary to install all associated duct work, fans, diffusers and other
equipment necessary to distribute air-conditioning service throughout the
demised premises from the A/C Units.

                    (viii)
It is acknowledged and agreed that Tenant, at its expense (except as
hereinabove provided) and as part of Tenant’s Initial Installation Work, shall
effect all work (the “Bathroom Renovation Work”), if any, necessary to renovate
and refurbish (a) the three (3) existing core bathrooms (one (1) men’s and two
(2) women’s) on the 14th floor of the building, and (b) the three
(3) existing core bathrooms (one (1) men’s and two (2) women’s) on the 15th
floor of the building, so that the condition of, and quality of installation
in, all such bathrooms shall be in substantially the same as or better than the
condition of, and quality of installation in, the core bathrooms on the 28th
floor of the building as of the Effective Date. Landlord shall designate other
bathrooms in the building for the other tenants on the 15th floor to
use on an interim basis during the period that Tenant is performing the
Bathroom Renovation Work.

          D.
Tenant acknowledges that it has been advised that Landlord is currently in the
process of implementing a program involving the renovation and upgrading of
various portions of the building and its systems, which work will include,
without limitation, the specific items set forth in Exhibit H attached hereto
and made a part hereof (the “Building Improvement Program”). Landlord agrees to
perform the work necessary to complete the Building Improvement Program in a
prompt and diligent manner, and acknowledges that such agreement constitutes a
material inducement to Tenant to enter into this lease.

57

          E.
Landlord shall effect all work necessary to renovate the common corridors on
the 15th floor of the building, in accordance with the
specifications which are attached hereto and made a part hereof as Exhibit J
(“Landlord’s 15th Floor Corridor Work”). Landlord shall substantially
complete Landlord’s 15th Floor Corridor Work within sixty (60) days
after Tenant notifies Landlord that Tenant has substantially completed Tenant’s
Initial Installation Work in the 15th Floor Portion; provided,
however, that such sixty (60) day period shall be extended by one day for each
day that Landlord’s 15th Floor Corridor Work is delayed due to any
of the causes set forth in Article 22A(i) of this lease, or by any act or
omission of Tenant its agents, contractors or employees, or by any change requested
by Tenant. Tenant shall reasonably cooperate with Landlord in connection with
Landlord’s 15th Floor Corridor Work, including, without limitation,
by providing Landlord and its contractors with such access to the 15th
Floor Portion as is necessary for the performance of such work within such
sixty (60) day period. Landlord shall use commercially reasonable efforts to
perform Landlord’s 15th Floor Corridor Work in a manner which
minimizes any interference with Tenant’s business operations in the 15th
Floor Portion; it being understood and agreed, however, that such work may be
performed on Business Days during Business Hours.

          F.
Landlord shall effect all work necessary to create an opening in the slab
between the 14th Floor Portion and the 15th Floor Portion
(“Landlord’s Slab Opening Work”), so that Tenant may, as part of Tenant’s
Initial Installation Work, install a stairway between such portions of the
demised premises (and Tenant hereby agrees to do so). Landlord’s Slab Opening
Work shall include, without limitation, any and all work necessary to reinforce
the slab and to install any required fireproofing materials. Such opening shall
be in a location reasonably designated by Tenant in a plan (which may be
separate from Tenant’s plans and specifications for Tenant’s Initial
Installation Work) depicting same (the “Slab Opening Plan”), prepared by
Tenant’s architect, which contains all architectural and engineering details
and information necessary for Landlord to properly and legally perform Landlord’s
Slab Opening Work, which location shall be reasonably acceptable to Landlord.
The size of such opening shall in no event exceed ten (10) feet by sixteen (16)
feet. Any such stairway shall be deemed a “Specialty Alteration” for purposes
of Article 8C(ii) of this lease, so that, unless Landlord elects otherwise in
writing at least one hundred eighty (180) days prior to the Expiration Date,
Tenant shall be required to remove such stairway and close up such opening in
the slab at the expiration or sooner termination of the term of this lease.
Landlord shall substantially complete Landlord’s Stair Opening Work within
ninety (90) days after Landlord’s approval of the Slab Opening Plan, which
approval shall not be unreasonably, withheld, conditioned or delayed (it being
agreed that the response periods and “deemed approved” provisions set forth in
Article 23C(ii) hereof with respect to Landlord’s review and approval of the
plans and specifications for Tenant’s Initial Installation Work shall apply,
also, to Landlord’s review and approval of the Slab Opening Plan); provided,
however, that such ninety (90) day period shall be extended by one day for each
day that Landlord’s Slab Opening Work is delayed due to any of the causes set
forth in Article 22A(i) of this lease, or by any act or omission of Tenant its
agents, contractors or employees, or by any change requested by Tenant. Tenant
shall reasonably cooperate with Landlord in connection with Landlord’s Slab
Opening Work, including, without limitation, by providing Landlord and its
contractors with such access to the demised premises as is necessary for the
performance of such work within such ninety (90) day period. Landlord shall use
commercially reasonable efforts to perform Landlord’s Slab Opening Work in a
manner which minimizes any

58

interference with Tenant’s
Initial Installation Work; it being understood and agreed, however, that such
work may be performed on Business Days during Business Hours.

24. SERVICES

          A.
Landlord shall provide no services, except as specifically set forth in this
lease (including Exhibit B hereto).

          B.
Tenant acknowledges that it has been advised that the cleaning contractor for
the building may be a subdivision or affiliate of Landlord. Tenant agrees to
employ said contractor or such other contractor as Landlord may from time to
time designate for any special waxing, polishing and other cleaning work in or
to the demised premises and Tenant’s furniture, fixtures and equipment,
provided that the prices charged by said contractor are comparable to the
prices charged by other contractors for the same work. Tenant agrees that under
no circumstances shall it employ any other cleaning contractor, nor any
individual, firm or organization for such purposes without Landlord’s prior
written consent. However, Tenant may use its own employees to perform such
cleaning services, provided that same does not cause a labor disturbance or
disruption at the building. If Landlord and Tenant cannot agree on whether the
prices being charged by the contractor designated by the Landlord are
comparable to those charged by other contractors, Landlord or Tenant may submit
such dispute to binding arbitration in accordance with Article 41 of this
lease. While such dispute is pending resolution, Tenant shall pay the charges
billed by Landlord or its approved cleaning contractor, as the case may be, but
without prejudice to Tenant’s position in such dispute. Landlord shall not be
obligated to provide cleaning services in excess of the specifications set
forth in Exhibit B annexed hereto and made part hereof.

          C.
(i) Landlord agrees to install, at its own cost and expense, all equipment
necessary to make available to Tenant the building chilled water and warm water
circulating system (summer cooling and winter ventilation) (the “Building
Chilled and Warm Water Equipment”).

                    (ii)
Tenant agrees that necessary work for the installation of any such equipment or
facilities and the repair and maintenance thereof may be performed by Landlord
during regular working hours without diminution or abatement of rent and
without liability on the part of Landlord by reason of inconvenience, annoyance
or injury to business arising from the performance of said work. However, with
respect to any such work which is performed after Landlord’s Work in the
demised premises is substantially completed, Landlord agrees to give Tenant
reasonable prior notice of such work (which may be oral), and to use
commercially reasonable efforts to perform such work in a manner that minimizes
any interference with Tenant’s use of the demised premises; it being understood
and agreed, however, that such work may be performed on Business Days during
Business Hours.

                    (iii)
The entire installation and all equipment and facilities at any time forming
the Building Chilled and Warm Water Equipment shall be and at all times remain
the property of Landlord. Any change, alteration, addition or extension of any
of said equipment or facilities shall be performed by Landlord at Tenant’s
expense. Tenant shall under no circumstances make any change, alteration,
addition or extension of any of said equipment or facilities, without

59

Landlord’s prior written
consent in each instance, which consent shall not be unreasonably withheld or
delayed.

                    (iv)
Landlord agrees to operate and maintain said equipment and facilities, at
Landlord’s expense (subject to Article 2B hereof), provided that all repairs,
substitutions replacements caused by reason of the carelessness, omission,
neglect or improper conduct of Tenant, its servants, employees, agents,
visitors or licensees shall be made by Landlord at the expense of Tenant,
subject to the provisions of Article 42E hereof.

                    (v)
Tenant agrees that Landlord shall not be obligated to operate such equipment
and facilities after or before Business Hours on Business Days or at any time
on days other than Business Days, except after prior written notice from and
payment by Tenant as hereinafter specified. Landlord shall operate such
equipment and facilities at times other than such normal business hours, at
Landlord’s then established rates in the building ($500 per hour per zone on
the date hereof) for such after-hours service, payable by Tenant as additional
rent when billed, provided that Tenant shall give notice prior to 1:00 P.M. in
the case of after-hours service on Business Days and prior to 3:00 P.M. on
Fridays in the case of after-hours service on Saturdays and Sundays (or 3:00
P.M. on the preceding Business Day, in the case of holidays). Landlord agrees
that Landlord’s rate in the building for operating such equipment and
facilities on an after-hours basis shall only be increased by the amount of any
actual increase in the cost to Landlord of providing such service. Landlord
further agrees that such after-hours rate shall be prorated (on a per tenant
basis) between Tenant and any other tenant in the same zone as Tenant that
requests and receives such after-hours service. Tenant acknowledges that it has
been advised by Landlord that, for purposes of this Article 24C(v), the demised
premises and all of the Option Space/ROFO Space (each as hereinafter defined in
Article 43) are in the same zone, and Landlord agrees that such space will
remain in the same zone during the term of this lease. Tenant agrees that
Landlord’s failure to operate such equipment and facilities in the absence of
such notice and payment shall not be deemed a partial or other eviction, or
disturbance of Tenant’s use, enjoyment, or possession of the demised premises,
and shall not render Landlord liable for damages, by abatement of rent or
otherwise, and Tenant shall not be relieved from any obligation under this
lease.

          D.
If and so long as Tenant is not in default under this lease beyond any
applicable notice and/or grace period, Landlord shall provide Tenant with two
(2) Executive Passes to the Empire State Building Observatory (“Observatory”)
on the 86th floor of the building (each with a maximum of thirty
(30) free visits), each calendar year during the term hereof, at no additional
charge to Tenant.

          E.
Except with respect to the A/C Units and any Supplemental A/C Units (as
hereinafter defined in Article 31C(i)), the building systems and mechanical
equipment including, without limitation, all elevator equipment, shall not
generate noise in excess of (i) NC-40 within ten (10) feet of any mechanical
equipment rooms or elevator machine rooms located within or serving the demised
premises and (ii) NC-35 within any other portion of the demised premises
including, without limitation, any conference rooms.

60

25. JURY
WAIVER; DAMAGES

          A.THE
PARTIES HERETO HEREBY WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW, TRIAL BY
JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF SUCH
PARTIES AGAINST THE OTHER WITH RESPECT TO ANY MATTER WHATSOEVER ARISING OUT OF
OR IN ANY WAY CONNECTED WITH THIS LEASE, THE RELATIONSHIP OF LANDLORD AND
TENANT, TENANT’S USE OR OCCUPANCY OF THE DEMISED PREMISES, OR FOR THE
ENFORCEMENT OF ANY REMEDY WHETHER PURSUANT TO STATUTE, IN CONTRACT OR TORT, AND
IRRESPECTIVE OF THE NATURE OR BASIS OF THE CLAIM INCLUDING BREACH OF AN
OBLIGATION TO MAKE ANY PAYMENT, FRAUD, DECEIT, MISREPRESENTATION OF FACT,
FAILURE TO PERFORM ANY ACT, NEGLIGENCE, MISCONDUCT OF ANY NATURE OR VIOLATION
OF STATUTE, RULE, REGULATION OR ORDINANCE. IF LANDLORD COMMENCES AGAINST TENANT
ANY SUMMARY PROCEEDING OR OTHER ACTION TO RECOVER POSSESSION OF THE DEMISED
PREMISES OR TO RECOVER ANY RENT, TENANT SHALL NOT INTERPOSE ANY COUNTERCLAIM OF
WHATEVER NATURE OR DESCRIPTION IN ANY SUCH PROCEEDING OR ACTION, EXCEPT A
COMPULSORY COUNTERCLAIM.

          B.
(i) NO DAMAGES SHALL BE AWARDED AND TENANT HEREBY WAIVES ANY CLAIM FOR DAMAGES
(WHETHER ACTUAL, COMPENSATORY, CONSEQUENTIAL, SPECIAL OR PUNITIVE) IN ANY
ACTION OR PROCEEDING (WHETHER JUDICIAL OR AN ARBITRATION) RELATING TO
LANDLORD’S WITHHOLDING, DELAYING OR CONDITIONING ANY CONSENT OR APPROVAL OR THE
REASONABLENESS OF ANY SUCH WITHHOLDING, DELAY OR CONDITION. HOWEVER, THE
PROVISIONS OF THIS SUBPARAGRAPH B(i) SHALL NOT BE APPLICABLE IF IT IS FINALLY
DETERMINED BY A COURT THAT LANDORD ACTED MALICIOUSLY OR IN BAD FAITH IN
WITHOLDING OR DELAYING SUCH CONSENT OR APPROVAL.

                    (ii)
If Tenant desires to determine any dispute between Landlord and Tenant as to
whether Landlord has unreasonably withheld, unreasonably conditioned or
unreasonably delayed its consent or approval, as above provided, Tenant may
initiate expedited arbitration in accordance with the provisions of Article 41
of this lease, or Tenant may commence any legal proceedings (subject to (i) above),
in either case, to settle and finally determine such dispute.

          C.
Except as otherwise specifically provided in Article 12 of this lease, Landlord
and Tenant each waive any consequential, special and punitive damages claim
against the other in connection with this lease.

26. NO WAIVER;
ETC.

          No
act or omission of Landlord or its agents shall constitute an actual or
constructive partial or total eviction or give rise to a right of Tenant to
terminate this lease or receive an abatement of any portion of its rent, or to
be relieved of any other obligation hereunder or to be compensated for any loss
or injury suffered by it, except as otherwise explicitly set forth herein. No
act or omission of Landlord or its agents shall constitute acceptance of a
surrender of the

61

premises, except a writing
signed by Landlord. The delivery of keys to Landlord or its agents shall not
constitute a termination of this lease or a surrender of the premises.
Acceptance by Landlord of less than the rent herein provided shall at
Landlord’s option be deemed on account of earliest rent remaining unpaid. No
endorsement on any check, or letter accompanying rent, shall be deemed an
accord and satisfaction, and such check may be cashed without prejudice to
Landlord. No waiver of any provision of this lease by Landlord or Tenant shall
be effective, unless such waiver be in writing signed by the other party. This
lease contains the entire agreement between the parties, and no modification
thereof shall be binding unless in writing and signed by the party concerned.
Tenant shall comply with the rules and regulations set forth on Schedule A
attached hereto and made a part hereof, and any reasonable modifications
thereof or additions thereto. Landlord shall not be liable to Tenant for the
violation of such rules and regulations by any other tenant. Failure of
Landlord to enforce any provision of this lease, or any rule or regulation,
shall not be construed as the waiver of any subsequent violation of a provision
of this lease, or any rule or regulation. Landlord shall not enforce the rules
and regulations against Tenant in a discriminatory manner. If there shall be
any inconsistency between the provisions of this lease and the rules and
regulations, the provisions of this lease shall govern. Reasonable written
notice of any additional rules and regulations (or any modification of the
existing rules and regulations) shall be given to Tenant. In case Tenant
disputes the reasonableness of any additional rule or regulation (or modification,
as the case may be) hereafter made or adopted by Landlord or Landlord’s agents,
the parties hereto agree to submit the question of the reasonableness of such
rule or regulation (or modification, as the case may be) for decision to the
Chairman of the Board of Directors of the Management Division of the Real
Estate Board of New York, Inc., or to such impartial person or persons as he
may designate; provided however, if Tenant objects to submitting the question
to such Chairman or to his designee or designees, the same shall be submitted
to arbitration as set forth in Article 41 hereof, and the determination of the
Chairman, his designee or designees, or the arbitrators as the case may be,
shall be final and conclusive upon the parties hereto. The right to dispute the
reasonableness of any additional rule or regulation (or modification, as the
case may be) upon Tenant’s part shall be deemed waived unless the same shall be
asserted by service of a notice in writing upon Landlord within thirty (30) days
after written notice to Tenant of the adoption of any such additional rule or
regulation (or modification, as the case may be). This lease shall not be
affected by nor shall Landlord in any way be liable for the temporary closing
or darkening of windows in the premises, for any reason, including as the
result of construction by a party unrelated to Landlord on any property of
which the demised premises are not a part or by Landlord’s own acts.

27. OCCUPANCY AND USE BY TENANT; SIGNAGE

          A.
(i) Tenant shall not obstruct or permit the obstruction of the light, halls,
areas, roof, stairway or entrances to the building, and will not affix, erect
or inscribe any signs, projections, awnings, signals or advertisements of any
kind to any part of the premises including the inside or outside of the windows
or doors thereof and will not paint the outside of the doors thereof or the
inside or outside of the windows thereof unless and until the style, size,
color, construction and location thereof have been approved in writing by
Landlord, which approval shall not be unreasonably withheld, conditioned or
delayed; provided, however, that no such approval shall be required with
respect to any identity signage which is not readily visible from the elevators
which service the 14th floor or from any other area outside of the
demised premises; provided, however, that if and so long as the named Tenant
hereunder (i.e., Coty Inc.) or its

62

Affiliate or a Successor Entity
is the Tenant under this lease, no such approval shall be required with respect
to any such identity signage which is readily visible from the elevators which
service the 14th floor of the building, provided Tenant gives
Landlord at least fifteen (15) days’ prior written notice of the installation
of such signage; and provided, further, that such signage is professionally
prepared and in keeping with the first class nature of the building.

                    (ii)
Notwithstanding anything contained in this lease to the contrary, it is
understood and agreed that Tenant, at its expense, shall cause Tenant’s
entrance door for any partial floor hereafter included in the demised premises
(other than the 15th Floor Portion or any other partial floor
hereafter included in the demised premises which comprises more than 35% of the
rentable square foot area of such floor, which measurement shall be made using
the same method that was used by Landlord to measure the original demised
premises hereunder), and any approved sign on Tenant’s entrance door for such
partial floor, to conform to the standards and specifications for entrance
doors and signage set forth in Exhibit K attached hereto and made a part
hereof, and that any such entrance door and signage shall be manufactured by a
company designated by Landlord in writing and installed by a company approved
by Landlord in writing. Tenant shall submit to Landlord for its prior written
approval a proposal regarding the content of any such entrance door sign,
promptly after the execution and delivery of this lease by Tenant. Any changes
to such approved entrance door sign shall be subject to Landlord’s prior
reasonable approval and to Landlord’s then standard signage specifications.

          B.
(i) If Tenant shall install a wireless intranet, Internet, and communications
network (also known as “Wi-Fi”) within the demised premises, such network (the
“Network”) shall be for the use by and only by Tenant and its permitted
occupants and their employees subject to the terms hereof. No antenna shall
exceed one meter in size and shall, subject to the following provisions of this
paragraph B, conform to all FCC specifications.

                    (ii)
Tenant shall not solicit or permit other tenants or occupants of the building
outside of the demised premises to use the Network or any other communications
service, including, without limitation, any wired or wireless Internet service
that passes through, is transmitted through, or emanates from the demised
premises.

                    (iii) Tenant agrees that Tenant’s communications
equipment and the communications equipment of Tenant’s service providers and
contractors retained to service the demised premises or installed in the
building to service the demised premises including, without limitation, any
antennas, switches, or other equipment (collectively, “Tenant’s Communications
Equipment”) shall be of a type and, if applicable, a frequency that will not
cause radio frequency, electromagnetic, or other interference to any other
party or any equipment of any other party including, without limitation,
Landlord, other tenants, or occupants of the building or any other party in
violation of FCC specifications concerning radio frequency interference
(“RFI”). In the event that Tenant’s Communications Equipment causes or is
believed to cause any such prohibited RFI, upon receipt of notice from Landlord
of such interference, Tenant will take all steps necessary to correct and
eliminate the interference. If the prohibited RFI is not eliminated within 24
hours (or a shorter period if Landlord believes a shorter period to be
appropriate) then, upon request from Landlord, Tenant shall shut down the
Tenant’s Communications Equipment pending resolution of the interference, with
the exception of intermittent testing upon prior notice to and with the
approval of Landlord. No Wi-Fi, Network, or Tenant’s Communication

63

Equipment may be installed in
any lobby, corridor, building common area or any other area not within the
exclusive control of Tenant or within the demised premises.

                    (iv)
Tenant acknowledges that Landlord has granted and/or may grant lease rights,
licenses, and other rights to various other tenants and occupants of the
building and to telecommunications service providers.

28. NOTICES

          Except
as otherwise expressly provided in this lease, any bills, statements, notices,
demands, requests or other communications given or required to be given under
this lease shall be deemed sufficiently given or rendered if in writing, (i)
sent by registered or certified mail (return receipt requested), or (ii) sent
by nationally recognized overnight courier, or (iii) delivered personally,
addressed as follows or to such other address as either Landlord or Tenant may
designate as its new address for such purpose by notice given to the others in
accordance with the provisions of this Article 28:

	
 

	
 

	
 

	
 

	
If to
Landlord:

	
Empire State
Building Company L.L.C.

	
 

	
 

	
350 Fifth
Avenue, Third Floor

	
 

	
 

	
New York,
New York 10118

	
 

	
 

	
Attn:
General Manager

	
 

	
 

	
 

	
 

	
with a copy
to:

	
Wien &
Malkin LLC

	
 

	
 

	
250 West
57th Street

	
 

	
 

	
New York,
New York 10165

	
 

	
 

	
Attn: Senior
Asset Supervisor

	
 

	
 

	
 

	
 

	
If to
Tenant:

	
Coty Inc.

	
 

	
 

	
Two Park
Avenue

	
 

	
 

	
New York,
New York 10016

	
 

	
 

	
Attn: Chief
Financial Officer

	
 

	
 

	
 

	
 

	
with a copy
to:

	
Coty Inc.

	
 

	
 

	
Two Park
Avenue

	
 

	
 

	
New York,
New York 10016 

	
 

	
 

	
Attn:
General Counsel

          or
at any place where Tenant or any agent or employee of Tenant may be found if
mailed subsequent to Tenant’s vacating, deserting, abandoning or surrendering
the premises. Tenant hereby acknowledges and agrees that any such bill,
statement, demand, notice, request or other communication may be given by
Landlord’s agent or Landlord’s counsel on behalf of Landlord, and Landlord
hereby acknowledges and agrees that any such bill, statement, demand, notice, request
or other communication may be given by Tenant’s counsel on behalf of Tenant.
Any such bill, statement, demand, notice, request or other communication shall
be deemed to have been rendered or given when received or refused, as indicated
on the delivery receipt. Notwithstanding anything contained in this Article 28
to the contrary, bills and statements issued

64

by Landlord may be sent by the
method(s) set forth hereinabove, without copies to any other party. This notice
provision has been specifically negotiated between the parties hereto.

29. WATER

          Landlord
shall provide water to Tenant for ordinary lavatory and pantry uses, including
one (1) shower, two (2) executive bathrooms and more than one (1) pantry on
each floor comprising the demised premises. If Tenant uses water for other than
such ordinary lavatory and pantry uses, including one (1) shower, two (2)
executive bathrooms and more than one (1) pantry on each floor comprising the
demised premises, then Landlord may install a water meter to measure Tenant’s
water consumption for all purposes and Tenant agrees to pay for the
installation and maintenance thereof and for water consumed as shown on said
meter.

30. SPRINKLER
SYSTEM

          It
is acknowledged and agreed that Tenant is installing a sprinkler system for the
demised premises as part of Tenant’s Initial Installation Work, and that Tenant
shall be responsible for maintaining same and for making any necessary repairs
or replacements thereto. Supplementing Article 15 hereof and not in lieu
thereof, if the New York Board of Fire Underwriters, the New York Fire
Insurance Exchange, the Insurance Services Office or any governmental authority
requires any alteration to said sprinkler system by reason of Tenant’s
occupancy or use of the premises, including any alteration necessary to obtain
the full allowance for a sprinkler system in the fire insurance rate of
Landlord, or for any other reason, Tenant shall make such installation or
alteration promptly, and at its own expense.

31. HEAT; AIR
CONDITIONING; ELEVATOR; ETC.

          A.
(i) Landlord shall provide passenger elevator service during all Business Hours
on all Business Days; provided, however, at least two (2) elevators shall be
available on a call basis at all times. Tenant acknowledges that there are
currently eight (8) passenger elevators servicing the 14th and 15th
floors of the building, and Landlord agrees that, subject to the terms of this
paragraph A, such elevators shall continue to service the 14th and
15th floors throughout the term hereof (subject, however, to
emergencies, any required repairs and/or maintenance and the other applicable
provisions of this lease). Landlord shall furnish heat and air conditioning to
the demised premises so as to provide for reasonably comfortable occupancy
thereof during all Business Hours on all Business Days. Landlord shall cause
the premises to be kept clean in accordance with the cleaning specifications
set forth on Exhibit B annexed hereto and made part hereof. The premises shall
be kept in order by Tenant. Landlord, its cleaning contractor and their
employees shall have after-hours access to the demised premises and the use of
Tenant’s light, power and water in the demised premises as may be reasonably
required for the purpose of cleaning the demised premises. Landlord may remove
Tenant’s extraordinary refuse (not covered by said cleaning specifications)
from the building and Tenant shall pay the reasonable cost thereof.

          (ii)
Provided that (a) the A/C Units to be installed by Tenant shall provide a
minimum of 205 tons of cooling capacity to the demised premises (with a minimum
of 120 tons to the 14th Floor Portion and the balance to the 15th
Floor Portion), (b) occupancy levels in the

65

demised premises will not
exceed one (1) person per one hundred (100) square feet of rentable area, (c)
the electrical load in the demised premises shall not exceed six (6) watts per
rentable square foot, and (d) Tenant shall at all times comply with applicable
and relevant building regulations affecting the operation of the A/C Units, the
A/C Units and the building heating system shall be capable of maintaining the
following conditions: (i) a minimum average indoor dry bulb temperature of not
less than 68 degrees Fahrenheit, whenever the outdoor dry-bulb temperature,
during business hours, is lower than 65 degrees and not lower than 0 degrees
Fahrenheit; and (ii) a minimum average indoor dry bulb temperature of no higher
than 75 degrees Fahrenheit, whenever the outdoor dry-bulb temperature, during
business hours, is higher than 65 degrees and not higher than 95 degrees
Fahrenheit, and the outdoor wet-bulb temperature does not exceed 75 degrees
Fahrenheit.

          B.
During the term of this lease, any air-conditioning equipment located in and/or
servicing the demised premises, including, without limitation, the A/C Units
(but excluding any Supplemental A/C Unit, as hereinafter defined), shall be
maintained, repaired and replaced as necessary by Landlord. All such equipment
is and shall remain the property of Landlord. Such obligation shall include the
cleaning of any HVAC filters at least two (2) times per year, and the
replacement of such filters at least once every two (2) years. However, such
obligation shall not include the maintenance, repair and/or replacement of the
duct work, fans, diffusers and other equipment necessary for the distribution
of air-conditioning service in the demised premises, all of which shall be the
responsibility of Tenant hereunder. Tenant shall not abuse any such equipment,
and Tenant shall reimburse Landlord within thirty (30) days after demand for
any damage to, or replacement of, such equipment caused by Tenant, its agents,
employees or contractors (subject to the provisions of Article 42E hereof).
This obligation shall survive the expiration or earlier termination of the term
hereof. Tenant shall reimburse Landlord, in accordance with Article 3 of this
lease, for electricity consumed by the air-conditioning equipment serving
solely the premises.

          C.
Notwithstanding the foregoing, Tenant shall be responsible for maintaining,
repairing and replacing, as necessary, any Supplemental A/C Unit (as
hereinafter defined) serving the demised premises, as well as all other costs
for operating the same (including, without limitation, all electricity consumed
by any such unit). In the event that any such Supplemental A/C Unit is
installed by or on behalf of Tenant, the same shall be an air-cooled unit and
all electricity consumed by such unit shall be furnished on a submetering
basis, in accordance with the applicable provisions of Article 3 of this lease,
and as part of such installation work, Tenant shall install a submeter, at
Tenant’s expense, in a location reasonably designated by Landlord and
reasonably acceptable to Tenant. If Tenant fails to promptly install such
submeter, then Landlord shall do so, at Tenant’s expense (which shall be
payable within thirty (30) days after demand as additional rent under this
lease). The term “Supplemental A/C Unit” when used herein shall mean an air
conditioning unit that provides air-conditioning service to the demised
premises in excess of the air-conditioning service being provided by the A/C
Units.

          D.
Supplementing Article 8 and Article 23 hereof, any louvers installed by or on
behalf of Tenant in connection with the A/C Units and/or any Supplemental A/C
Unit serving the demised premises shall be deemed approved by Landlord,
provided such louvers are in compliance with all applicable laws, rules and
regulations, including, without limitation, the

66

requirements of the New York
Landmarks Preservation Commission (“Landmarks”) and any applicable building
codes. Landlord agrees to reasonably cooperate with Tenant (at no material
expense to Landlord, and without any liability to Landlord) in connection with
obtaining any required certificate, sign-off, permit or approval from any
governmental authority in connection with the installation of such louvers,
including, without limitation, the approval of Landmarks. Tenant shall have no
restoration obligation with respect to such louvers.

32. RENEWAL
OPTION

          A.
Tenant shall have the option to extend and renew the term of this lease with
respect to the then existing demised premises, in its then “as is” condition,
for one (1) additional period of five (5) years, commencing on the first day of
the sixteenth Lease Year and ending on the last day of the twentieth Lease Year
(the “Extended Term”), upon the same terms and conditions as contained in this
lease (unless changed or modified by mutual agreement) except that (i) the
fixed annual rental rate, without electricity (and subject to operating expense
and real estate tax escalation additional rents pursuant to paragraphs B and C
of Article 2 hereof, respectively), for the Extended Term shall be a sum equal
to one hundred percent (100%) of the fair and reasonable annual market rental
rate for the demised premises as of the first day of the Extended Term, taking
into account the rentals at which leases are being concluded for comparable
space in the building and in comparable buildings in the same rental area as
the building and all other relevant factors, including the new Base Year and
base tax year applicable to the Extended Term, as hereinafter provided; (ii)
for the Extended Term: under paragraph B of Article 2, the term “Base Year”
shall mean the Expenses for the building project for the calendar year during
which the commencement date of the Extended Term occurs; and the first
“comparative year” under said paragraph B of Article 2 shall be the calendar
year immediately following such calendar year during which the commencement
date of the Extended Term occurs; (iii) for the Extended Term: under paragraph
C of Article 2, the term “base tax year” shall mean the real estate taxes
assessed against the building project for the New York City real estate tax
year during which the commencement date of the Extended Term occurs; and the
first “comparative year” under said paragraph C of Article 2 shall be the New
York City real estate tax year immediately following such base tax year; and
(iv) this lease, as extended for the Extended Term, shall contain no renewal
option. The exercise of such option shall only be effective upon, and in strict
compliance with, the following terms and conditions:

          (a)
Written notice of the exercise of such option shall be given by Tenant to
Landlord not later than twelve (12) months prior to the Expiration Date of the
initial term of this lease (the “Initial Term”). Time shall be of the essence
in connection with any exercise of such option by Tenant hereunder.

          (b)
(1) The fair and reasonable annual market rental rate for the demised premises
effective as of the commencement of the Extended Term shall take into account,
also, the five (5) year term of the extension, and it shall be determined, as
aforesaid, during the last six (6) months of the Initial Term. On or before the
commencement of such six (6) month period, Landlord shall notify Tenant of
Landlord’s determination of such fair and reasonable annual market rental rate
for the demised premises. Within thirty (30) days after the later of (x) the
commencement of such six (6) month period, or (y) Tenant’s receipt of
Landlord’s determination of such fair and reasonable annual market rental rate,
Tenant shall respond to Landlord’s notice

67

with Tenant’s determination of
the fair and reasonable annual market rental rate for the demised premises.
Upon receipt of such notice from Tenant, Landlord and Tenant shall seek to
agree as to the amount of such fair and reasonable annual market rental rate
for the demised premises. If they shall not agree as to such rate within thirty
(30) days after receipt of such notice from Tenant, then and in such event said
fair and reasonable annual market rental rate shall be determined by appraisal
as hereinafter in this Article provided.

                    (2)
If at the commencement date of the Extended Term, the amount of the fixed
annual rental rate payable during said term in accordance with the foregoing
paragraphs of this Article shall not have been determined, then, pending such
determination, Tenant shall pay fixed annual rent at a rate equal to 100% of
(x) the fixed annual rental rate payable hereunder as of the last month of the
Initial Term, plus (y) the sum of the operating expense and real estate tax
escalation additional rent payable under paragraphs B and C of Article 2
hereof, respectively, for the last twelve (12) months of the Initial Term (the
“Temporary Rate”). After the determination by appraisal or agreement, as the
case may be, of the fair and reasonable annual market rental rate for the
demised premises, if the fixed annual rental rate payable pursuant to this
Article is greater than the Temporary Rate, Tenant shall pay to Landlord, within
thirty (30) days after receipt of Landlord’s invoice, the difference between
the rent theretofore paid at the Temporary Rate and the greater rental rate
determined after the appraisal or agreement, as the case may be; and the
greater fixed annual rental rate so determined after the appraisal or
agreement, as the case may be, shall be payable during the Extended Term;
however, if the fixed annual rental rate payable pursuant to this Article is
less than the Temporary Rate, Landlord shall promptly pay to Tenant the
difference between the rent theretofore paid at the Temporary Rate and the
lesser rental rate determined after the appraisal or agreement, as the case may
be (or, at Landlord’s option, Tenant shall be entitled to a rent credit in such
amount, to be applied, until fully depleted, against the next rent due under
this lease); and the lesser fixed annual rental rate so determined after the
appraisal shall be payable during the Extended Term.

          (c)
Upon determination of the fixed annual rent for the Extended Term, Landlord and
Tenant shall execute, acknowledge and deliver to each other an agreement
specifying the amount of the fixed annual rental rate for the Extended Term
(but any failure to execute such an agreement shall not affect Tenant’s obligation
to pay and Landlord’s right to receive such fixed annual rent).

          (d)
Tenant shall not be in default beyond any grace period under any of the terms,
covenants and conditions of this lease at the time Tenant gives written notice
to Landlord of its election to extend the term of this lease.

          (e)
As provided in Article 32A(b), if Landlord and Tenant shall be unable to agree
as to the fair and reasonable annual market rental rate by the date hereinabove
set forth, then and in such event said fair and reasonable annual market rental
rent for the demised premises shall be determined by appraisal as follows:

                    (1)
Either party shall give a notice to the other, stating the name and address of
an impartial person to act as appraiser hereunder, and within thirty (30) days
after the

68

receipt of such notice, the
other party shall give notice to the sender of the first-mentioned notice,
likewise, stating the name and address of an impartial person to act as
appraiser hereunder.

                    (2)
The appraisers so specified in such notices shall be licensed real estate
brokers doing business in Manhattan, each having not less than fifteen (15)
years active experience as real estate brokers specializing in the leasing of office
space in said Borough.

                    (3)
In making their determinations, the appraisers shall consider and follow the
directions set forth in this Article.

                    (4)
Before proceeding to determine the fair and reasonable annual market rental
rate for the demised premises (the “rate”), as aforedescribed, the appraisers
so appointed shall subscribe and swear to an oath fairly and impartially to
determine such rate. If, within thirty (30) days following the appointment of
the latter of said appraisers, said two appraisers shall be unable to agree
upon the said rate, the said appraisers shall appoint, by an instrument in
writing, as third appraiser, an impartial person, similarly qualified, who,
within ten (10) days of such appointment, shall find as correct the rate that
was determined by either the appraiser specified by Landlord or the appraiser
specified by Tenant and render a written decision fixing such rate as the fair
and reasonable annual market rental rate for the demised premises, which
written decision shall be binding and conclusive on the parties. The third
appraiser may not select any rate other than the one specified by the appraiser
appointed by Landlord or the one specified by the appraiser appointed by
Tenant. The written decision of the first two appraisers so appointed fixing
such rate, or the written finding of such third appraiser fixing such rate, as
the case may be, shall be binding and conclusive on the parties.

                    (5)
If, after notice of the appointment of an appraiser, the other party shall
fail, within the above specified period of thirty (30) days, to appoint an
appraiser, such appointment of a similarly qualified appraiser may be made,
upon application without notice by the person who shall have been appointed an
appraiser, by the then President of the Real Estate Board of New York, Inc., or
such successor body hereafter constituted exercising similar functions (or if
there be no Real Estate Board or its successor, or if its President will not so
act, then such appointment shall be made by a Justice of the Supreme Court, New
York County, then presiding in Special Term, Part II thereof, or the equivalent
of said Part II). If the two appraisers aforesaid shall be unable to agree,
within thirty (30) days following the appointment of the latter of said
appraisers, upon such rate and shall fail to appoint in writing a third
appraiser within fifteen (15) days thereafter, the necessary appraiser shall be
appointed by said President (or by said Justice). If any appraiser appointed as
aforesaid by either of the parties, by said President, by said Justice, or by
the two appraisers so appointed, shall die, be disqualified or incapacitated or
shall fail or refuse to act, before such rate shall have been determined, the
necessary appraiser shall be promptly appointed by the person or persons who
appointed the appraiser who shall have died, become disqualified or
incapacitated, or who shall have failed or refused to act, as aforesaid.

          (6)
Landlord and Tenant shall each pay the fees of the person acting as appraiser
hereunder for Landlord and Tenant, respectively, and Landlord and Tenant shall
each pay one-half (1/2) of the fees of any third appraiser appointed pursuant
to the above provisions.

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          B.
The exercise of this Renewal Option by Tenant shall be conditioned upon the
occupancy of at least seventy-five percent (75%) of the then rentable square
foot area of the demised premises by Tenant and/or any Affiliate of Tenant or
Desk Space User.

33. RENT
CONTROL

          If
on the Commencement Date, or at any time during the term hereof, the fixed
annual rent or additional rent in this lease is not fully collectible by reason
of any Federal, State, County or City law, proclamation, order or regulation,
or direction of a public officer or body pursuant to law (collectively, “Rent
Control Law”), Tenant agrees to take such reasonable steps as Landlord may
reasonably request to permit Landlord to collect the maximum rents which may be
legally permissible from time to time during the continuance of such legal rent
restriction (but not in excess of the amounts reserved therefor under this
lease). Upon the termination of such legal rent restriction, Tenant shall pay
to Landlord, to the extent permitted by Rent Control Law, an amount equal to
(a) the fixed annual rent and additional rent which would have been payable
pursuant to this lease but for such legal rent restriction, less (b) the fixed
annual rent and additional rent paid by Tenant to Landlord during the period
such legal rent restriction was in effect.

34. SHORING

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

35. EFFECT OF
CONVEYANCE; ETC.

          If
the building containing the premises shall be sold, transferred or leased, or
the lease thereof transferred or sold, Landlord shall be relieved of all future
obligations and liabilities hereunder thereafter accruing and the purchaser,
transferee or tenant of the building shall be deemed to have assumed and agreed
to perform all such obligations and liabilities of Landlord hereunder
thereafter accruing.

36. RIGHTS OF
SUCCESSORS AND ASSIGNS

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

37. CAPTIONS

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

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38. LEASE
SUBMISSION

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

          B.
(i) If Tenant is a corporation, partnership, limited liability company or other
form of organization or association, each individual executing this lease on
behalf of Tenant hereby agrees that by executing this lease such individual
represents and warrants to Landlord that Tenant is a duly formed and validly
existing entity and that Tenant has full right and authority to execute and
deliver this lease and that each person signing on behalf of Tenant is
authorized to do so.

                    (ii)
If Landlord is a corporation, partnership, limited liability company or other
form of organization or association, each individual executing this lease on
behalf of Landlord hereby agrees that by executing this lease such individual
represents and warrants to Tenant that Landlord is a duly formed and validly
existing entity and that Landlord has full right and authority to execute and
deliver this lease and that each person signing on behalf of Landlord is
authorized to do so.

39. ELEVATORS
AND LOADING

          A.
Tenant acknowledges it has been advised that the freight elevators servicing
the building can be used from 8:00 A.M. to 6:00 P.M. on Business Days for
construction and other purposes which will not unreasonably interfere with use
of the freight elevator by or on behalf of Landlord and the other tenants of
the building. Any use of freight elevator service on other days and times shall
be on a first-come, “as available” basis and shall be scheduled and reserved in
advance with Landlord, and (except as provided in Article 23C(vi) hereof)
Tenant shall pay Landlord’s customary building standard charge therefor (which,
as of the date of this lease, is $150.00 per hour for loading dock security and
elevator operator, with a four (4) hours minimum). Landlord agrees that
Landlord’s customary building standard charge for operating the freight
elevators on an after-hours basis shall only be increased by the amount of any
actual increase in the cost to Landlord of providing such service. There shall
be no major loading or unloading in the building between 8:00 A.M. and 6:00
P.M. on Business Days.

          B.
It is the intention of Landlord to maintain in the building, operatorless
automatic control elevators. However, Landlord may, at its option, maintain in
the building either manually operated elevators or operatorless automatic
control elevators or part one and part the other, and Landlord shall have the
right from time to time during said term, to change, in whole or in part, from
one to the other without notice to Tenant and without in any way constituting
an eviction of Tenant or affecting the obligations of Tenant hereunder or
incurring any liability to Tenant hereunder.

40. BROKERAGE

          A.
Tenant represents and warrants that it neither consulted nor negotiated with
any broker or finder with regard to the demised premises other than CB Richard
Ellis, Inc. and

71

Colliers ABR, Inc. (the “Brokers”). Tenant agrees to indemnify, defend
and save Landlord harmless from and against any claims for fees or commissions
from anyone other than the Brokers with whom Tenant has dealt in connection
with the demised premises or this lease.

          B. Landlord
represents and warrants that it neither consulted nor negotiated with any
broker or finder with regard to the demised premises other than the Brokers.
Landlord agrees to indemnify, defend and save Tenant harmless from and against
any claims for fees or commissions from anyone other than the Brokers with whom
Landlord has dealt in connection with the demised premises or this lease.
Landlord agrees to pay any commission or fee owing to CB Richard Ellis, Inc.
and Colliers ABR, Inc. pursuant to separate agreements with them. Nothing in
this Article 40 shall be construed to be a third party beneficiary contract.

41. ARBITRATION

          In each
case specified in this lease in which resort to expedited arbitration or
arbitration shall be required or may be elected by a party, such arbitration
(unless otherwise specifically provided in other provisions of this lease)
shall be in Manhattan in accordance with the Expedited Procedures of the
Arbitration Rules of the Real Estate Industry American Arbitration Association
and the provisions of this lease, and judgment upon the award rendered by the
arbitrators may be entered in any court having jurisdiction thereof. Except as
specifically set forth in this lease, there shall be no right to arbitrate any
dispute arising out of this lease and any other action or proceeding shall be
adjudicated in the state or federal courts sitting in New York County, New
York.

42. INSURANCE

          The
following requirements (collectively, the “Insurance Requirements”) shall be
complied with by Tenant at all times during the term hereof:

          A. At all times during the term hereof, Tenant
shall maintain, at Tenant’s expense, the following insurance coverage:

                    (i) all risk property insurance, including
theft and, if applicable, boiler and machinery coverage, written at replacement
cost value in an adequate amount to avoid coinsurance and a replacement cost
endorsement insuring Tenant’s trade fixtures, furnishings, equipment and all items
of personal property of Tenant and including property of Tenant’s customers or
clients, as the case may be, located in the demised premises;

                    (ii) broad form commercial general liability
insurance written on a per occurrence basis with a per occurrence limit of not
less than $5,000,000 and with other limits reasonably satisfactory to Landlord;

                    (iii) worker’s compensation insurance and
employer’s liability coverage in statutory limits, and New York State disability
insurance as required by law, covering all employees; and

                    (iv) such other coverage as Landlord may
reasonably require with respect to the demised premises, its use and occupancy
and the conduct or operation of business therein.

72

                    Landlord
may, from time to time, but not more frequently than once every year, adjust
the minimum limits set forth above, provided such limits shall not exceed the
limits then typically being required by other landlords of first class office
buildings in Manhattan.

          B. All
insurance policies to be maintained as set forth above (i) shall be issued by
companies of recognized responsibility, authorized to do business in the State
of New York, reasonably acceptable to Landlord, and maintaining a rating of
A-/VIII or better in Best’s Insurance Reports-Property-Casualty (or an
equivalent rating in any successor index adopted by Best’s or its successor),
(ii) shall provide that the insurer will endeavor to send Landlord and all
additional insureds and loss payees thereunder at least thirty (30) days’ prior
written notice of any cancellation or modification of such policies, (iii)
shall name, as additional insureds, Landlord, the managing agent of the
building and the holders of any Superior Interests whose name and address shall
have been furnished to Tenant and (iv) shall be primary and non-contributory in
all respects. All policies providing fire and extended coverage property
insurance coverage pursuant to paragraph A(i) shall name Landlord as loss payee
with respect to improvements and alterations (except if this lease is cancelled
due to a casualty), and shall name Tenant as loss payee with respect to
Tenant’s property.

          C. Prior to
the Commencement Date, Tenant shall deliver to Landlord binding certificates of
insurance for the insurance coverage required by paragraph A and, if required
by Landlord, copies of the endorsements to such policies designating such
persons or parties as additional insureds, providing for commercially
reasonable deductibles. Tenant shall procure and pay for renewals of such
insurance from time to time before the expiration thereof, and Tenant shall
deliver to Landlord certificates of renewal at least five (5) days before the
expiration of any existing policy. If Tenant fails to procure or maintain any
insurance required by this lease and to pay all premiums and charges therefor,
Landlord may (but shall not be obligated to) procure and pay the same, provided
Landlord shall have given Tenant at least ten (10) days’ prior notice thereof,
and Tenant shall reimburse Landlord, within thirty (30) days after demand, for
all such sums paid by Landlord. Any such payment shall not cure or waive any
default by Tenant in the performance of its obligations hereunder, nor shall
the foregoing right of Landlord to make such payment in any way limit, reduce,
diminish or impair the rights of Landlord under the terms of this lease or at
law or in equity arising as a result of any such default. Under no
circumstances shall Landlord be obligated to advise Tenant of Tenant’s failure
to procure or maintain any insurance required hereunder.

          D. Tenant
shall not carry separate or additional insurance, concurrent in form or
contributing in the event of any loss or damage with any insurance required to
be obtained by Tenant under this lease unless the parties required by paragraph
B above to be named as additional insureds or loss payees thereunder are so
named. Tenant may carry any insurance coverage required of it hereunder
pursuant to blanket policies of insurance so long as the coverage afforded
Landlord and the other additional insureds or loss payees thereunder, as the
case may be, shall not be less than the coverage that would be provided by
direct policies.

          E. (i)
Landlord agrees that it will include in its fire insurance policies appropriate
clauses pursuant to which the insurance companies (a) waive all right of
subrogation against Tenant with respect to losses payable under such policies
and/or (b) agree that such

73

policies shall not be invalidated should the insured waive in writing
prior to a loss any or all right of recovery against any party for losses
covered by such policies.

                    (ii)
Tenant agrees to include in its fire insurance policy or policies on its
furniture, furnishings, fixtures and other property removable by Tenant under
the provisions of its lease of space in the building appropriate clauses
pursuant to which the insurance company or companies (a) waive the right of subrogation
against Landlord and/or any tenant of space in the building with respect to
losses payable under such policy or policies and/or (b) agree that such policy
or policies shall not be invalidated should the insured waive in writing prior
to a loss any or all right of recovery against any party for losses covered by
such policy or policies.

                    (iii)
Landlord hereby waives any and all right of recovery which it might otherwise
have against Tenant, its servants, agents and employees, for loss or damage
occurring to the building and the fixtures, appurtenances and equipment
therein, to the extent the same is covered by Landlord’s insurance,
notwithstanding that such loss or damage may result from the negligence or
fault of Tenant, its servants, agents or employees. Tenant hereby waives any
and all right of recovery which it might otherwise have against Landlord, its
servants, and employees, and against every other tenant in the building who
shall have executed a similar waiver as set forth in this subparagraph E(iii)
for loss or damage to, Tenant’s furniture, furnishings, fixtures and other
property removable by Tenant under the provisions hereof to the extent that
same is covered by Tenant’s insurance, notwithstanding that such loss or damage
may result from the negligence or fault of Landlord, its servants, agents or
employees, or such other tenant and the servants, agents or employees thereof.

                    (iv)
Landlord and Tenant hereby agree to advise the other promptly if the clauses to
be included in their respective insurance policies pursuant to subparagraphs
E(i) and E(ii) above cannot be obtained. Landlord and Tenant hereby also agree
to notify the other promptly of any cancellation or change of the terms of any
such policy which would affect such clauses.

          F. Landlord
shall maintain throughout the term of this lease standard all risk property
insurance for the building in an amount equal to its full replacement value,
and comprehensive general liability insurance coverage with respect to all
claims for personal injury, death or property damage occurring in, upon,
adjacent to or connected to the building or any part thereof, with commercially
reasonable limits of coverage and commercially reasonable deductibles.

43. EXPANSION OPTION; RIGHT OF FIRST OFFER

          A. Expansion
Option. If, at any time prior to the first anniversary of the Commencement
Date, Landlord desires to lease any space on the 13th, 16th,
17th, 18th or 19th floor of the building which contains
at least 7,500 rentable square feet and is then or, within six (6) months
following the date Landlord’s OS Availability Notice (as hereinafter defined)
is given, will be vacant and available for leasing by Landlord (i.e.,
subject only to the option of another tenant granted prior to the Effective
Date), then Landlord shall notify Tenant of such fact, which notice
(“Landlord’s OS Availability Notice”) shall include a description of the
layout, configuration and rentable square foot area of such space (an “Option
Space”), and the date

74

Landlord reasonably anticipates the term of the leasing of such space
shall commence (the “Anticipated Commencement Date”). If and so long as Tenant
is not in default under this lease beyond any applicable notice and/or grace period,
Tenant shall have the one-time option (with respect to such space) to add all
but not part of such space to the demised premises, subject to the following
terms and conditions:

                    (i)
Tenant shall give Landlord written notice of its election so to add all but not
part of an Option Space to the demised premises, which notice shall be given no
later than thirty (30) days after the date Landlord’s OS Availability Notice is
given. Time shall be of the essence in connection with the exercise by Tenant
of any option hereunder.

                    (ii)
The term of the leasing of such Option Space shall commence on the OS
Commencement Date (as hereinafter defined), and shall end on the expiration or
sooner termination date of the initial term of this lease, or, if the Tenant
exercises its renewal option as in Article 32 provided, the expiration or
sooner termination date of the Extended Term. The term “OS Commencement Date”
when used herein shall mean the thirty-first (31st) day after the
date when Landlord delivers vacant possession of an Option Space to Tenant
(free of any occupancies or tenancies) with Landlord’s OS Work (as hereinafter
defined) therein substantially completed. Landlord shall give Tenant fifteen
(15) days’ prior written notice of the date Landlord will substantially
complete Landlord’s OS Work. Landlord’s OS Work shall be deemed to have been
substantially completed in an Option Space despite the fact that minor
insubstantial details of construction and mechanical adjustments (i.e.,
“punch list items”) remain to be completed, provided the Option Space is
accessible and reasonably usable by Tenant for the purpose of effecting
Tenant’s OS Initial Installation Work (as hereinafter defined) therein; and
provided, further, that the building systems through which the services which
are required to be provided by Landlord hereunder (including, without
limitation, the Building Chilled and Warm Water Equipment and the chilled and
warm water service provided thereby) are available in the Option Space (or in
locations outside of the demised premises, if so provided hereunder), so that,
upon completion of Tenant’s OS Initial Installation Work, such services can be
provided by Landlord as required hereunder. Landlord shall nevertheless complete
such punch list items within thirty (30) days of the OS Commencement Date (and
Tenant shall provide Landlord and its contractors with such access to the
demised as is reasonably necessary to do so, using reasonable diligence and
without the necessity of incurring overtime or premium labor charges, provided
Landlord uses commercially reasonable efforts to minimize any interference with
Tenant’s OS Initial Installation Work). Landlord shall, in accordance with the
foregoing, fix the OS Commencement Date and notify Tenant of the date so fixed.
When the OS Commencement Date has so been determined, the parties hereto shall,
within thirty (30) days thereafter, at Landlord’s request, execute a written
agreement confirming such date as the OS Commencement Date. Any failure of the
parties to execute such written agreement shall not affect the validity of the
OS Commencement Date as fixed and determined by Landlord, as aforesaid. Any
dispute regarding the occurrence of an OS Commencement Date shall be resolved
by arbitration in accordance with the provisions of Article 41 of this lease.
Tenant by entering into occupancy of an Option Space shall be conclusively
deemed to have agreed that Landlord up to the time of such occupancy had
substantially completed Landlord’s OS Work, unless within twenty (20) days
after such date Tenant shall give written notice (hereinafter called the “OS
Punch List Notice”) to Landlord specifying the respects in which the same were
not in satisfactory condition, in which event the Option Space shall be
conclusively deemed to be in satisfactory

75

condition except for the items set forth in the OS Punch List Notice.
The giving of the OS Punch List Notice shall have no effect whatsoever upon the
OS Commencement Date.

                    (iii)
Commencing on the date which is ten (10) months after the OS Commencement Date
(the “OS Rent Commencement Date”), Tenant shall pay Landlord fixed annual rent
for an Option Space at the following rates: $52 per rentable square foot per
annum from the OS Rent Commencement Date through the last day of the fifth
Lease Year; $56 per rentable square foot per annum from the first day of the
sixth Lease Year through the last day of the tenth Lease Year; and $60 per
rentable square foot per annum from the first day of the eleventh Lease Year
through the last day of the fifteenth Lease Year.

                    (iv)
Tenant agrees to accept an Option Space in its then “as is” condition, except
that Landlord shall perform the work set forth in Article 23B of this lease (i.e.,
“Landlord’s Work”) in such Option Space in accordance with the provisions of
said Article 23B (“Landlord’s OS Work”) (taking into account, however, the fact
that an Option Space may not be a full floor and, therefore, (a) Landlord shall
perform, at its own expense, such other work as may be legally necessary or
appropriate in first class office buildings in Midtown Manhattan to lease a
partial floor, such as installing any necessary common corridor, and (b)
Landlord shall not perform such Landlord’s Work that is appropriate for a full
floor tenant in a first class office building in Midtown Manhattan, but shall
perform such Landlord’s Work that is appropriate for a partial floor tenant in
such a building). Tenant shall effect all other work necessary for Tenant to
conduct its business in the Option Space and to make such space suitable and
ready for Tenant’s occupancy and use (“Tenant’s OS Initial Installation Work”).
Tenant shall effect such work in accordance with the provisions of Article 23
of this lease which are applicable to the performance of Tenant’s Initial
Installation Work. Tenant shall also be entitled to a contribution (“Landlord’s
OS Contribution”) from Landlord toward the cost of Tenant’s OS Initial
Installation Work, which shall be disbursed to Tenant in accordance with the
provisions of Article 23C(iii) of this lease (all of which provisions shall
apply to Landlord’s OS Contribution as if it were Landlord’s Contribution),
except that the amount of Landlord’s OS Contribution shall be an amount equal
to the unamortized portion of $50 per rentable square foot included in the
Option Space, which unamortized portion shall be calculated based on a
fraction, the numerator of which shall be the number of calendar months
remaining in the term of this lease after the OS Commencement Date, and the
denominator of which shall be 180 (and the reference to “$899,745.00” in said
Article 23C(iii) shall be deemed changed to an amount equal to “fifteen percent
(15%) of the amount of Landlord’s OS Contribution”, as determined hereunder);
provided, however, (1) that if the Option Space consists of the entire rentable
area of a floor, then the amount of Landlord’s OS contribution shall be
increased by an amount equal to $254,000.00, and Tenant shall be required to
renovate and refurbish the core men’s and women’s bathrooms in said Option
Space (as provided in Article 23C(viii) above); (2) that if the Option Space
consists of less than a full floor, then Landlord shall, within ten (10) months
after the date Tenant exercises its option hereunder with respect to such
Option Space, perform all work which is necessary to upgrade the core men’s and
women’s bathrooms on such floor in accordance with the specifications for
upgrading such core bathrooms in the building which are part of the Building
Improvement Program (if and to the extent such core bathrooms have not already
been so upgraded pursuant to such Building Improvement Program); and (3) that
if the sum of (x) the age of any building air conditioning unit in such Option
Space, plus (y) the number of full

76

calendar years then remaining in the term of this lease, is more than
twenty (20) years, then the amount of Landlord’s OS Contribution shall be
increased by $4,500 per ton of cooling capacity for each such air conditioning
unit (assuming one (1) ton of cooling capacity for every 430 rentable square
feet included in the Option Space), and Tenant shall be required to replace
such unit or units, as the case may be (as provided in Article 23C(vii) above)
(except that if any such unit services such Option Space as well as other
adjacent space which is not included in such Option Space, then Landlord shall
promptly replace such unit with a new building standard air conditioning unit,
which shall be of equal or better quality to the Petra Engineering Industries
Co., Model PAHHC62C2).

                    (v)
Tenant shall pay Landlord operating expense escalation additional rent for an
Option Space, in accordance with Article 2B of this lease, except that “The
Percentage” shall be calculated based on a fraction, the numerator of which
shall be the rentable square foot area of the Option Space, and the denominator
of which shall be 2,720,595.

                    (vi)
Tenant shall pay Landlord real estate tax escalation additional rent for an
Option Space, in accordance with Article 2C of this lease, except that “The
Percentage” shall be calculated based on a fraction, the numerator of which
shall be the rentable square foot area of the Option Space, and the denominator
of which shall be 2,720,595.

                    (vii)
Tenant shall purchase electricity from Landlord for an Option Space on a
submetering basis, in accordance with the provisions of Article 3 of this
lease, and Landlord, as part of Landlord’s OS Work, shall install a meter or
meters and any and all wiring and other equipment which is proper and necessary
to furnish redistributed electricity to the Option Space on a submetering
basis.

                    (viii)
Except as herein set forth, an Option Space shall be added to the demised
premises pursuant to all of the applicable terms, covenants and conditions of
this lease.

                    (ix)
If Tenant duly and timely exercises such option with respect to an Option
Space, then Landlord and Tenant shall promptly enter into an amendment of this
lease confirming the inclusion of such Option Space in the demised premises
pursuant to the terms and conditions of this Article. In all other respects,
the terms and conditions contained in this lease shall remain unmodified. Any
such amendment of this lease shall be in a form reasonably acceptable to
Landlord and Tenant. In the event that Tenant fails to exercise its option as
aforesaid within such thirty (30) day period, then Tenant shall be deemed to
have waived its rights under this Article with respect to the leasing of such
Option Space.

          B. Right
of First Offer. If, at any time during the initial term of this lease after
the first anniversary of the Commencement Date (and not during the Extended
Term), Landlord desires to lease any space on the 13th, 16th,
17th, 18th or 19th floor of the building which contains
at least 7,500 rentable square feet and is then or, within six (6) months
following the date Landlord’s RS Availability Notice (as hereinafter defined)
is given, will be vacant and available for leasing by Landlord (i.e.,
subject only to the option of another tenant granted prior to the Effective
Date), then Landlord shall notify Tenant of such fact, which notice
(“Landlord’s RS Availability Notice”) shall include (i) a description of the
layout, configuration and rentable

77

square foot area of such space (a “ROFO Space”), (ii) Landlord’s
determination of the fair and reasonable annual market rental rate for the ROFO
Space (the “Fair Offer Rental”), which shall constitute the maximum amount
thereof that Landlord may claim as the Fair Offer Rental for such ROFO Space in
any arbitration thereof, and (iii) the Anticipated Commencement Date, the rent
commencement date, and the condition in which Landlord is willing to lease such
space, including, without limitation, any base building work which Landlord is
willing to perform and/or work allowance or contribution which Landlord is
willing to make towards the cost of Tenant’s initial installation in such space.
The term of the leasing of any ROFO Space shall be co-terminous with the
scheduled expiration date of the term of this lease; except, however, that such
term must be for a minimum of five (5) years, so that if the Anticipated
Commencement Date, as hereinafter defined, occurs less than five (5) years
prior to the last day of the 15th Lease Year, then Tenant may not
exercise its within option to lease such ROFO Space unless it simultaneously
exercises its Renewal Option pursuant to Article 32 of this lease (in which
case the term of the leasing of such ROFO Space, as well as any other ROFO
Space thereafter leased by Tenant hereunder, shall expire on the last day of
the twentieth (20th) Lease Year). If and so long as Tenant is not in
default under this lease beyond any applicable notice and/or grace period,
Tenant shall have the one-time option (with respect to each such ROFO Space),
exercisable by notice to Landlord (an “Acceptance Notice”) given within thirty
(30) days after the date Landlord’s RS Availability Notice is given (time being
of the essence), to add to the demised premises all but not part of any such
ROFO Space. Tenant shall notify Landlord in the Acceptance Notice whether
Tenant accepts or disputes Landlord’s Maximum Offer Determination, and if
Tenant disputes Landlord’s Maximum Offer Determination, the Acceptance Notice
shall set forth Tenant’s good faith determination of the Fair Offer Rental for
such ROFO Space, which shall constitute the minimum that Tenant can claim as
the Fair Offer Rental for such ROFO Space in any arbitration thereof (“Tenant’s
Minimum Offer Determination”). If Tenant fails to object to Landlord’s Maximum
Offer Determination in the Acceptance Notice and to set forth therein Tenant’s
Minimum Offer Determination, then Tenant shall be deemed to have accepted
Landlord’s Maximum Offer Determination as the Fair Offer Rental for such ROFO
Space and Landlord and Tenant shall promptly enter into an amendment of this
lease confirming (a) the inclusion of the ROFO Space in the demised premises,
(b) the term of the leasing of such ROFO Space (including, without limitation,
the commencement date and the rent commencement date), (c) the fixed annual
rents and additional rents payable for such ROFO Space, (d) the condition in
which such space is being leased, including without limitation, the base
building work which Landlord will perform (if any), and the work allowance or
contribution which Landlord will make towards the cost of Tenant’s initial
installation in such space (if any), all as set forth in Landlord’s RS
Availability Notice, and (e) that the ROFO Space shall otherwise be leased to
Tenant pursuant to all of the terms, covenants and conditions of this lease,
including, without limitation, the provisions of Article 2 regarding real
estate tax escalation additional rent and operating expense escalation
additional rent (except that (x) the base tax year for the ROFO Space shall be
the New York City real estate tax year during which the commencement date of
the term of the leasing of the ROFO Space occurs, (y) the Base Year for the
ROFO Space shall be the calendar year during which the commencement date of the
term of the leasing of the ROFO Space occurs, and (y) “The Percentage” for the
ROFO Space shall be determined in the same manner “The Percentage” was
determined for the original demised premises hereunder, i.e., by a fraction,
the numerator of which is the rentable square foot area of the ROFO Space, and
the denominator of which is 2,720,595), and the provisions of Article 3

78

regarding electricity. In all other respects, the terms and conditions
contained in this lease shall remain unmodified. Any such amendment of this
lease shall be in a form reasonably acceptable to Landlord and Tenant. Any
failure of the parties to execute any such amendment shall not affect Tenant’s
or Landlord’s obligation to lease such space on the terms elected. In the event
that Tenant (1) gives Landlord an Acceptance Notice within such thirty (30) day
period, (2) objects to Landlord’s Maximum Offer Determination in the Acceptance
Notice and (3) sets forth therein Tenant’s Minimum Offer Determination, then
the Fair Offer Rental for such ROFO Space shall be determined by appraisal
pursuant to the provisions of clauses (1) through (6) of Article 32A(e) hereof,
except that the appraisers shall determine the Fair Offer Rental for such ROFO
Space and not for the demised premises (and upon such determination of the Fair
Offer Rental by appraisal for such ROFO Space, the parties shall promptly enter
into an amendment of this lease, as aforedescribed, except that the Fair Offer
Rental shall be as determined in such appraisal). In the event of any such
appraisal, Tenant shall pay Landlord fixed annual rent based on Landlord’s
Maximum Offer Determination for the period, if any, from the commencement date
of the term of the leasing of such ROFO Space, until such appraisal has been
completed, whereupon Landlord shall promptly refund to Tenant the amount, if
any, by which Landlord’s Maximum Offer Determination exceeds the Fair Offer
Rental determined by such appraisal. In the event that Tenant fails to give
Landlord an Acceptance Notice within such thirty (30) day period, Tenant shall
be deemed to have waived its right under this Article with respect to the
leasing of such ROFO Space. Landlord may not give Tenant a Landlord’s RS
Availability Notice more than six (6) months before the date that space will be
available to lease to Tenant.

          C.
Notwithstanding anything contained herein to the contrary, with respect to any
space which is vacant and available for leasing as of the Effective Date, the
provisions of this Article 43 with respect to the leasing of Option Space
and/or ROFO Space by Tenant shall not be applicable to such space until after
the initial leasing of such space by Landlord after the Effective Date.

          D. If, for
any reason beyond its control, Landlord is unable to make available to Tenant
timely possession of any Option Space or ROFO Space, as the case may be, in
accordance with the election of Tenant hereunder, then Landlord shall not be
subject to any liability by reason of such delay, the within lease shall not be
affected by such delay, but Landlord shall diligently and in good faith seek to
fulfill its obligations with respect to such space, including, without
limitation, the commencement and diligent prosecution of a summary holdover
dispossess proceeding against any tenant holding over in such space.
Notwithstanding the foregoing, if Landlord is unable to make possession of any
Option Space or ROFO Space, as the case may be, available to Tenant within one
hundred eighty (180) days after the Anticipated Commencement Date for such
space, then, at Tenant’s election, to be made by written notice given by Tenant
to Landlord within thirty (30) days after the end of such one hundred eighty
(180) day period (time being of the essence), the exercise by Tenant of its
option or right to lease such Option Space or ROFO Space (as the case may be)
hereunder shall be deemed null and void and of no force and effect, and neither
party shall have any further obligation or liability to the other under this
Article with respect to the leasing of such space; provided, however, that if
Tenant does not make such election within such thirty (30) day period and
Landlord is still unable to make possession of any Option Space or ROFO Space,
as the case may be, available to Tenant within two hundred seventy (270) days
after the Anticipated Commencement Date for

79

such space, then, at Tenant’s election, to be made by written notice
given by Tenant to Landlord within thirty (30) days after the end of such two
hundred seventy (270) day period (time being of the essence), the exercise by
Tenant of its option or right to lease such Option Space or ROFO Space (as the
case may be) hereunder shall be deemed null and void and of no force and
effect, and neither party shall have any further obligation or liability to the
other under this Article with respect to the leasing of such space.

          E. The
foregoing provisions are intended to reflect the intention of the parties that
this Tenant shall have no other rights with respect to Landlord’s renting of
the above described space or any other space in the building, except to the
extent specifically set forth above.

          F. Attached
hereto and made a part hereof as Exhibit G are space diagrams showing the 13th,
16th, 17th, 18th and 19th floors of
the building, including the rentable square foot area of each such floor, and
the scheduled expiration dates of the leases currently covering space on each
such floor. Landlord agrees to measure any Option Space or ROFO Space which is
less than a full floor for purposes hereof using the same method as was used by
Landlord to measure the rentable square foot area of the demised premises and
each such floor included in said Exhibit G.

          G. The
exercise by Tenant of its rights under this Article shall be conditioned upon
the occupancy of at least eighty-five percent (85%) of the then rentable square
foot area of the demised premises by Tenant and/or any Affiliate of Tenant or
Desk Space User.

44. LATE CHARGES

          If Tenant
shall fail to pay all or any part of any installment of fixed annual rent or
additional rent for more than five (5) days after the same shall have become
due and payable, and Landlord shall thereafter notify Tenant of such failure,
then Tenant shall pay Landlord, within five (5) days after demand, as
additional rent hereunder, a late charge of (i) three ($.03) cents for each
dollar of the amount of such fixed annual rent or additional rent which shall
not have been paid to Landlord within such five (5) days after becoming due and
payable or (ii) interest on such sum from the date when first due at the
average of all prime rates published from time to time in The Wall Street Journal
(Eastern Edition) plus three percent (3%), whichever is greater; provided,
however, that Landlord shall not be required to so notify Tenant more than
twice in any twelve (12) month period during the term of this lease (so that
after such second notice such late charge will be due with respect to any
subsequent payment by Tenant which is more than five (5) days late, during such
Lease Year, without any further notice from Landlord). Tenant acknowledges that
the payment of rent after the date when first due shall result in loss and
injury to Landlord the exact amount of which is not susceptible of reasonable
calculation and that the aforesaid amount of late charge represents a
reasonable estimate of such losses and injury under the circumstances,
especially after taking into account the grace period hereby afforded Tenant
before such late charge is to be imposed. The late charge payable pursuant to
this Article 44 shall be without prejudice to any of Landlord’s rights and
remedies hereunder at law and equity for non-payment or late payment of rent or
other sums and in addition to any such rights and remedies, including the right
to institute and prosecute a proceeding under Article 7 of the Real Property
Actions and Proceedings Law. No failure by Landlord to insist upon the strict
performance by Tenant of Tenant’s obligation to pay late charges as provided in
this Article shall constitute a waiver by Landlord of its right to enforce the
provisions of this Article in any

80

instance thereafter occurring. The provisions of this Article shall not
be construed in any way to extend the grace periods or notice periods provided
for elsewhere in this lease.

45. ENVIRONMENTAL COMPLIANCE

          A. (i)
Tenant shall comply with all federal, state and local environmental protection
and regulatory laws (“Environmental Laws”) applicable to the demised premises.
Landlord shall comply with all Environmental Laws applicable to the building.

                    (ii)
Tenant shall not use, generate, manufacture, store or dispose of any hazardous
substance on, under or about the demised premises or the building nor transport
any hazardous substance thereto, in violation of any applicable Environmental
Laws. Tenant shall immediately advise the Landlord, in writing of any and all
enforcement, clean-up, remediation, removal or other governmental or regulatory
actions instituted, completed or threatened pursuant to any applicable laws
relating to any hazardous substances; and all claims made or threatened by any
person (including a governmental authority) against the demised premises,
Tenant or Landlord relating to any damage, injury, costs, remedial action or
cost recovery compensation arising out of or due to the existence of any
hazardous substance in or about the demised premises or the building.

          B. (i)
Tenant shall defend, indemnify and hold Landlord harmless from and against all
actions, causes of action, claims, lawsuits, administrative proceedings,
hearings, judgments, awards, fines, penalties, costs (including legal,
engineers’, experts’, investigatory and consulting fees), damages, remediation
activities and clean-up costs, liens, and all other liabilities incurred by
Landlord whenever incurred, arising out of any Tenant’s act or failure to act
(where there is a duty to do so) resulting in (a) the existence or presence (or
alleged existence or presence) on or about the building of any hazardous
substance or the release of any hazardous substance into the environment, in
violation of any applicable Environmental Laws; (b) any personal injury or
property damage resulting from any hazardous substance in or about the
building; (c) the violation of any Environmental Laws; or (d) the commencement
or prosecution by any governmental authority or private person or entity of any
judicial or administrative procedure arising out of any Environmental Laws or
common law cause of action in which Landlord is named a party or in which it
may intervene. The obligations of Tenant under this subparagraph B(i) shall
survive the expiration or earlier termination of the term hereof.

                    (ii)
Landlord shall defend, indemnify and hold Tenant harmless from and against all
actions, causes of action, claims, lawsuits, administrative proceedings,
hearings, judgments, awards, fines, penalties, costs (including reasonable
legal, engineers’, experts’, investigatory and consulting fees), damages,
remediation activities and clean-up costs, liens, and all other liabilities
incurred by Tenant whenever incurred, arising out of any Landlord’s act or
failure to act resulting in (a) the existence or presence (or alleged existence
or presence) on or about the building of any hazardous substance or the release
of any hazardous substance into the environment, in violation of any applicable
Environmental Laws; (b) any personal injury or property damage resulting from
any hazardous substance in or about the building; (c) the violation of any
Environmental Laws; or (d) the commencement or prosecution by any governmental
authority or private person or entity of any judicial or administrative
procedure arising out of any claims under any federal, state or municipal
environmental protection or

81

regulatory law or common law cause of action in which Landlord is named
a party or in which it may intervene. The obligations of Landlord under this
subparagraph B(ii) shall survive the expiration or earlier termination of the
term hereof.

          C.
“Hazardous substance” means any hazardous substance as defined in the
Comprehensive Environmental Response, Compensation and Liability Act of 1980,
42 U.S.C. §§ 9601 et seq., as amended by the Superfund Amendments and
Reauthorization Act of 1986; hazardous waste as defined in the Resource
Conservation and Recovery Act of 1976, 42 U.S.C. §§ 6901 et seq., as any of the
foregoing may be amended or superseded; oil; petroleum product, derivative,
compound or mixture; mineral, including asbestos; chemical; gas; medical waste;
polychlorinated biphenyls (pcb’s); methane; radon; radioactive material;
volatile hydrocarbons; or other material, whether naturally occurring, man-made
or the by-product of any process, which is toxic, harmful or hazardous or
acutely hazardous to the environment or public health or safety; or any other
substance the existence of which on or at any property would be the basis for a
claim for damages, clean-up costs or remediation costs, fine, penalty or lien
under any Environmental Laws or applicable common law.

46. LEASE FULLY NEGOTIATED

          In
construing this lease, it shall be deemed to be a document fully negotiated and
drafted jointly by counsel to Landlord and counsel to Tenant and the authorship
of any term or provision hereof shall not be deemed germane to its meaning. The
existence or non-existence in any prior draft hereof of any term or provision
whether included herein or not shall not be relevant to the establishment of
the intent of the parties hereto or the meaning of any term or provision hereof
and may not be used as evidence to establish any such intent or meaning.

47. SMOKING RESTRICTIONS

          Landlord
reserves and shall have the right to restrict to certain designated areas
within the premises or to prohibit altogether smoking of cigarettes, cigars,
other tobacco products or any other substances and the use of pipes and other
paraphernalia for such purposes. Without limiting Landlord’s rights under the
preceding sentence, Tenant shall enforce within the demised premises the
provisions of Local Law 5 of 1995.

48. ANTI-TERRORISM REQUIREMENTS

          Tenant
represents and warrants that (i) neither Tenant nor any person, group or entity
who owns any direct or indirect beneficial interest in Tenant or any of them,
is listed on the list maintained by the United States Department of the
Treasury, Office of Foreign Assets Control (commonly known as the OFAC List) or
otherwise qualifies as a terrorist, Specially Designated National and Blocked
Person or a person with whom business by a United States citizen or resident is
prohibited (each a “Prohibited Person”); (ii) neither Tenant nor any person,
group or entity who owns any direct or indirect beneficial interest in Tenant
or any of them is in violation of any to anti-money laundering or
anti-terrorism statute, including, without limitation, the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act of 2001, U.S. Public Law 107-56 (commonly known as the USA
PATRIOT Act), and the related regulations issued thereunder, including
temporary regulations,

82

and Executive Orders (including, without limitation, Executive Order
13224) issued in connection therewith, all as amended from time to time; and
(iii) neither Tenant nor any person, group or entity who owns any direct or
indirect interest in Tenant is acting on behalf of a Prohibited Person. Tenant
shall indemnify and hold Landlord harmless from and against all claims,
damages, losses, risks, liabilities and costs (including fines, penalties and
reasonable legal costs) arising from any misrepresentation in this paragraph or
Landlord’s reliance thereon. Tenant’s obligations under this paragraph shall
survive the expiration or sooner termination of the term of this lease.

	
  

 	
  

 
	
 49. CONDOMINIUM PROVISIONS

 

          A. Landlord
reserves (and Tenant acknowledges that Landlord has) the right to convert (or
join or acquiesce in the conversion of) the building or building project to
condominium form of ownership (a “Conversion”) of which the demised premises
may, in the sponsor and Landlord’s sole discretion, constitute all or a portion
of a condominium unit (hereinafter referred to as the “Unit”). If the building
is converted to condominium form of ownership, then this lease shall not be
affected thereby and shall continue in full force and effect, except as follows:

          (i) Except
as otherwise specifically set forth herein, references to the building or
building project shall be deemed to be references to the Unit.

          (ii) Rents
based upon increases in real estate taxes shall be payable upon the following
terms:

	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 The Percentage applicable to Expenses or real estate taxes, as
 applicable, shall be recomputed as a decimal fraction carried to four places
 beyond the decimal point by dividing the rentable square foot area of the
 demised premises by the rentable square foot area of the Unit (as determined
 by Landlord in its reasonable judgment);

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 Expenses shall include all Expenses heretofore defined and all
 charges, assessments and special assessments payable by the owner of or
 attributable to the Unit pursuant to the condominium’s declaration of
 condominium, its bylaws or resolution of the board of managers or condominium
 association having jurisdiction of the Unit;

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 Expenses and real estate taxes for the Base Year and the base tax
 year shall be recomputed by Landlord using its reasonable judgment to
 allocate to the Unit the actual Expenses and real estate taxes as would have
 been allocated to the Unit for Base Year and base tax year had the
 condominium then been in existence and such amounts as Landlord shall have
 reasonably determined shall be deemed the Expenses and real estate taxes for
 the Base Year and base tax year, respectively; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 If any such conversion shall be effective on a date that is not the
 first day of a relevant comparative year, additional rent for increases in
 real estate

 

83

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 taxes, as the case may be, shall be calculated for the periods before
 and following the effective date of such conversion according to the
 appropriate methodology for such period and accordingly prorated for each
 such period.

 

          (iii) Any
dispute regarding the provisions of this paragraph A shall be resolved by
Arbitration in accordance with the provisions of Article 41 of this lease.

          B.
Tenant does hereby consent in advance to the formation of
individual and separately saleable units in the nature of condominium units,
and the creation of a condominium regime (the “Condominium”) for the building
project, as long as the rights of Tenant pursuant to the terms of this lease
are not reduced, conditioned or otherwise adversely affected (other than to a
de minimis extent) nor its obligations increased (other than to a de minimis
extent).

          C.
Regardless of whether or not Tenant may have a sufficient
interest in the building project pursuant to law to require its consent to the
documents involved in the Conversion, Tenant does hereby specifically waive
such rights, and if such rights cannot be waived, does hereby consent to such
matters in advance.

          D.
In the event of a Conversion in which the Premises are converted
into one or more separately saleable units, Tenant does hereby agree in advance
to attorn to any purchaser of any unit(s) which shall consist of the Premises
and recognizes such purchaser as landlord under the terms and provisions of
this lease and no further consent of Tenant shall be required as long as the
purchaser of any such unit(s) agrees in writing to honor the rights and
obligations of Tenant hereunder.

          E.
This lease shall be subordinate to all Condominium Documents,
provided that Landlord shall obtain, on behalf of Tenant, a non-disturbance and
attornment agreement from the Condominium, in a commercially reasonable form,
but in any event providing in substance that so long as Tenant is not in
default under this lease beyond any applicable notice and/or grace period, the Condominium will
not take any action to recover possession of the demised premises,
notwithstanding any foreclosure of the Unit. Upon such Conversion, if the Condominium
Documents provide for the performance of any obligations that would have been
Landlord’s obligations under this lease, Landlord will cause the board of
managers to perform such obligations, but in no event shall any rights or
remedies of Tenant hereunder be diminished, conditioned or negated or its
obligations increased by such operation of the Condominium Documents. The term
“Condominium Documents” shall include the declaration of condominium, bylaws
and any other documents promulgated in connection therewith. It is expressly
understood and agreed that the demised premises are intended to be a part of
the Condominium, and to be subject to the Condominium Documents. Tenant agrees
that the aforesaid subordination shall be self-operative without the need for
any further action but Tenant shall execute and deliver such documents as
Landlord may require to confirm or further effect such subordination. Tenant
agrees to observe all of the rules and regulations of the Condominium and the
board of managers of the Condominium (the “Board”), provided Tenant has been
furnished with a copy of such rules and regulations and same are not
inconsistent with the terms of this lease.

84

          F.
Notwithstanding anything to the contrary contained elsewhere in this lease, any
provision of this lease that requires Landlord to “cause the Board” to provide
services or perform any other act shall be deemed to require Landlord to use
commercially reasonable efforts to cause the Board to do the same, or if,
despite the exercise of such commercially reasonable efforts by Landlord, there
is a continued failure in performance by the Board, then Landlord shall use
commercially reasonable efforts to provide such service or perform such act in
lieu of the Board. Landlord agrees that the Condominium Declaration recorded
for the Building shall obligate the Board to perform Landlord’s maintenance,
repair and replacements obligations hereunder that relate to “common elements”
or shall give the Landlord access and the privilege to perform the same.

50. ADDITIONAL DEFINITIONS; COUNTERPARTS

          A. The term
“real estate taxes” shall, in addition to the items referred to in Article 2,
include assessments, impositions and levies imposed by business special tax
districts. “Business Days” shall mean all days, except Saturdays, Sundays, and
all days celebrated as holidays under union contracts applicable to the
building. “Business Hours” shall mean 8:00 a.m. to 6:00 p.m. The words
“herein,” “hereof,” “hereto,” “hereunder” and similar words shall be
interpreted as being references to this lease as a whole and not merely the clause, paragraph, Section or
Article in which such word appears. The term “demised premises” is used
interchangeably with the term “premises”. The words “shall” and “will” are
interchangeable, each imposing a mandatory obligation upon the party to whom
such verb applies. The words ““include” and “including” shall be interpreted to
mean “including, without limitation.” The word “control” and the variations
thereof used in this lease shall have the meanings ascribed to them under the
Securities Act of 1933, as amended, and the regulations promulgated under it.
Whenever in this lease the word “default” is used, it is acknowledged and
agreed that such term shall mean the failure to perform an obligation on or
before a designated date, whether or not (i) a default notice has been sent,
(ii) performance of the obligation by Tenant is accepted after the designated
date, (iii) this lease may be terminated for failure of timely performance, or
(iv) any other remedy or right accrues to Landlord by reason of such late
performance. Wherever appropriate in this lease, personal pronouns shall be
deemed to include the other genders and the singular or plural of any defined
term or other word shall, as the context may require, be deemed to include, as
the case may be, either the singular or the plural. All Article and paragraph
and subsection references set forth herein shall, unless the context otherwise
specifically requires, be deemed references to the Articles, paragraphs and
subsections of this lease. Wherever herein Tenant is required to comply with
laws, orders and regulations of any governmental authority having or asserting
jurisdiction over the demised premises, such laws, orders and regulations shall
include, as and where applicable to the demised premises: the Americans with
Disabilities Act of 1990, Local Law 5/1973, Local Laws 16/1984, and 16/1987,
Local Law 58/1987, Local Law 76/1985 and Local Law 80/1985, as each may be amended
and any successor statutes of like or similar import. References to Landlord as
having no liability to Tenant or being without liability to Tenant shall mean
that, except as otherwise provided in this lease, Tenant is not entitled to
terminate this lease, or to claim actual or constructive eviction, partial or
total, or to receive any abatement or diminution of rent, or to be relieved in
any manner of any of its other obligations hereunder, or to be compensated for
loss or injury suffered or to enforce any other kind of 

85

liability whatsoever against Landlord under or with respect to this
lease or with respect to Tenant’s use or occupancy of the demised premises.

          B. This
lease may be executed in two or more counterparts and all counterparts so
executed shall for all purposes constitute one agreement binding on all of the
parties hereto, notwithstanding that all parties shall not have executed the
same counterparts. Facsimile and photocopy signatures on this lease shall have
the same force and effect as originals.

51. USE OF BUILDING NAME AND IMAGE

          Tenant
acknowledges and agrees that Landlord owns the name and image of the Empire
State Building and the good will symbolized by such name and image. Tenant,
therefore, shall not use or suffer the use by any affiliate, employee or agent
of the name or image of the Empire State Building in any advertisement or other
publication, irrespective of the medium or in any trademark, servicemark or
trade name, without the prior written consent of Landlord in each instance.
Breach of the terms of this paragraph shall be deemed to be a material default
under this lease. Notwithstanding any other rights or remedies that may exist
in law, Landlord shall be entitled to enforce the provisions of this paragraph
by injunctive or other form of equitable relief. Tenant’s obligations and
Landlord’s rights under this paragraph shall survive the expiration or sooner
termination of the term hereof. Landlord hereby consents to Tenant’s use of the
name Empire State Building on Tenant’s business stationery solely to identify
its address, for only so long as Tenant is a tenant in the building and this
lease is in full force and effect.

52. APPLICABLE LAW

          This lease
shall be deemed to have been made in New York County, New York, and shall be
construed in accordance with the laws of New York. All actions or proceedings
relating, directly or indirectly, to this lease shall be litigated only in
courts located within the County of New York. Landlord and Tenant, any guarantor
of the performance of Tenant’s obligations hereunder and their respective
successors and assigns, hereby subject themselves to the jurisdiction of any
state or federal court located with such county. Tenant hereby waives the right
to raise any defense based upon inconvenient forum or make any plea or motion
seeking to remove any case to another venue (but nothing herein shall preclude
Tenant or Landlord from removing any case to any federal court sitting in New
York County).

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          IN
WITNESS WHEREOF, Landlord and Tenant have executed
this lease as of the day and year first above written.

	
  

 	
  

 	
  

 
	
  

 	
 LANDLORD:

 
	
  

 	
 EMPIRE STATE
 BUILDING COMPANY L.L.C.

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Peter L.
 Malkin

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name: Peter
 L. Malkin 

 
	
  

 	
  

 	
 Title:
 Member

 
	
  

 	
  

 
	
  

 	
 TENANT: 

 
	
  

 	
 COTY INC

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Michael
 Fishoff

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:
 Michael Fishoff 

 
	
  

 	
  

 	
 Title: Chief
 Financial Officer

 

87

EXHIBIT A

to lease

between

Empire State Building Company L.L.C.,
Landlord

and

Coty Inc., Tenant

Diagram of Demised Premises

[Floor Plan]

[Floor Plan]

EXHIBIT A-1

to lease

between

Empire State Building Company L.L.C.,
Landlord

and

Coty Inc., Tenant

Legal Description

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

BEGINNING at the corner formed by the intersection of the southerly
side of 34th Street with the westerly side of 5th Avenue;

THENCE southerly along the westerly side of 5th Avenue 197
feet 6 inches to the northerly side of 33rd Street;

THENCE westerly along the northerly side of 33rd Street 500
feet;

THENCE northerly and parallel with the westerly side of 5th
Avenue 98 feet 9 inches to the middle line of the block;

THENCE easterly and parallel with the northerly side of 33rd
Street, 75 feet;

THENCE again northerly and parallel with the westerly side of 5th
Avenue and part of the distance through a party wall 98 feet 9 inches to the
southerly side of 34th Street;

THENCE easterly along the southerly side of 34th Street 425
feet to the corner aforesaid, the point or place of BEGINNING.

EXHIBIT B

to lease

between

Empire State Building Company L.L.C.,
Landlord

and

Coty Inc., Tenant

Cleaning Schedule

RESTROOMS

	
  

 	
  

 	
  

 
	
 Daily/Nightly
 Service

 
	
  

 	
 •

 	
 Empty and sanitize trash containers, provide and install plastic
 liners in all waste receptacles, clean and sanitize all restroom fixtures,
 wipe clean all counters, clean mirrors, wipe clean chrome/brightwork, spot
 wipe partitions, sweep and damp mop floors using a germicidal cleaner.
 Strategically place multi-lingual wet floor warning signs in immediate work
 area. Leave signs in place until floor is dry.

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Provide and install all hand towels, toilet issue, hand soap,
 sanitary napkins and trash liners.

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Remove finger marks from walls, doors and painted surfaces.

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Report all mechanical deficiencies, i.e. dripping faucets, burnt out
 lights, etc., to building management.

 

	
  

 	
  

 	
  

 
	
 Weekly Service

 
	
  

 	
 •

 	
 Dust and
 clean all air vents

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Wash all
 restroom partitions on both sides using a germicidal disinfectant

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Clean and
 wash all ventilating louvers

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Hand wash
 and polish all wall tiles and stall surfaces

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Dust ceiling
 light lenses

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Wash and
 disinfect all trash containers

 

	
  

 	
  

 	
  

 
	
 Monthly Service

 
	
  

 	
 •

 	
 Machine scrub all restroom floors using germicidal floor cleaner

 

TENANT
AREAS

	
  

 	
  

 	
  

 
	
 Daily/Nightly Service

 
	
  

 	
 •

 	
 Hand dust all areas below five (5) feet high using a soft-treated
 dusting cloth to include but not limited to furniture, fixtures, telephones,
 equipment, file cabinets, window sills, convector closure tops, chair and
 table legs and rungs, baseboards, ledges, moldings, all door and other
 ventilating louvers.

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Wipe clean all metal hardware, metal fixtures and other brightwork.

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Wipe clean all metal elevator shaft way doors and frames.

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Empty, clean and damp wipe all waste receptacles. Remove waste paper
 and waste materials to designated area in the building. Recyclable materials
 shall be removed in accordance with building-recycling program. Furnish and
 install, at no additional charge, all plastic liners required for removal of
 all rubbish from the building.

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 All water fountains washed, cleaned nightly.

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Slop sink rooms cleaned nightly.

 

	
  

 	
  

 	
  

 
	
 Weekly

 
	
  

 	
 •

 	
 All stone, ceramic tile, marble, terrazzo and other unwaxed or
 untreated hard flooring shall be swept using an approved dust-down
 preparation.

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 All linoleum, rubber, Pirelli tile, asphalt tile and other similar
 types of hard flooring (that may be waxed or treated) shall be swept using an
 approved dust-down preparation. Waxing and interim buffing shall be done at
 Tenant’s expense.

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 All carpeting and rugs shall be carpet swept.

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Fully vacuum all carpets from wall to wall using a crevice tool to
 effectively vacuum all edges.

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Dust all door, floor and wall HVAC louvers. 

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Wipe clean all telephone handsets and cradles using a germicidal
 cleanser.

 

2

	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Sweep all hard-surfaced and or vacuum all carpeted private
 staircases.

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Normal floor cleaning only shall be performed in tenants’ computer
 equipment areas, food preparation and dining areas.

 
	
  

 	
  

 	
  

 
	
 Monthly

 
	
  

 	
 •

 	
 Damp mop and scrub all stone, ceramic tile, marble, terrazzo and
 other unwaxed or untreated hard flooring.

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Damp mop all linoleum, rubber, Pirelli tiled, asphalt tile and other
 similar types of hard flooring (that may be waxed or treated).

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Dust all areas above (5) feet high using a soft-treated dusting cloth
 to include but not limited to all ledges, moldings, signage, picture frames,
 charts, light fixtures and lenses, recessed lighting, switch plates, file
 cabinets, furniture, etc.

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Wipe clean all baseboards using an approved baseboard cleaner.

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Dust and wipe clean interior and exterior of all fire extinguisher
 cabinets.

 
	
  

 	
  

 	
  

 
	
 Quarterly

 
	
  

 	
 •

 	
 Wipe clean all ceiling diffusers.

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Dust all window blinds.

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Remove, clean and replace all ceiling light lenses.

 
	
  

 	
  

 	
  

 
	
 Annually

 
	
  

 	
 •

 	
 Wash all trash containers. Monthly or more if needed.

 
	
  

 	
  

 	
  

 
	
 Other

 
	
  

 	
 •

 	
 Remove finger marks and scuff marks from partition walls and door
 surfaces on sight.

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Wipe clean all metal window frames, mullions, terrace doors and other
 unpainted interior metal surfaces of the perimeter wall of the building each
 time the interior of the windows are washed.

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 Clean interior and exterior of outside windows, when necessary, but
 not less than two (2) times a year.

 

3

EXHIBIT C

to lease

between

Empire State Building Company L.L.C., Landlord

and

Coty Inc., Tenant

Non-Disturbance Agreements

EXHIBIT C-1

SUBORDINATION
NON-DISTURBANCE AND ATTORNMENT AGREEMENT

WITH
GROUND LESSEE/SUBLESSOR

SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT

          SUBORDINATION,
NON-DISTURBANCE AND ATTORNMENT AGREEMENT (this “Agreement”) dated as
of July 14, 2008, between EMPIRE STATE BUILDING ASSOCIATES L.L.C. (“Master
Lessee”), a
limited liability company organized and existing under the laws of the State of
New York having its principal place of business c/o Wien & Malkin LLP, 60
East 42nd Street, New York, New York 10165; and COTY INC. (“Subtenant”),
a corporation organized and existing under the laws of the State of Delaware
having its principal place of business at Two Park Avenue, New York, New York
10016.

W I T N E S
S E T H:

          Master
Lessee is the lessee by mesne assignments under that certain Indenture of
Ground Lease more particularly described in Exhibit 1 annexed hereto and made
part hereof (as amended, supplemented or otherwise modified from time to time,
the “Master Lease”)pursuant
to which it leases the land described on Schedule A annexed hereto and made
part hereof (the “Land”) and the building (the “Building”) known as The Empire State Building, 350 Fifth Avenue, New York,
New York from Empire State Land Associates L.L.C. In turn, Master Lessee
sublets the Land and Building to Empire State Building Company L.L.C. (“Sublandlord”)
pursuant to that certain Agreement of Sublease more particularly
described in Exhibit 2 annexed hereto and made part hereof (as amended,
supplemented or otherwise modified from time to time, the “Operating
Sublease”).

          Sublandlord
and Subtenant entered into a Sublease, dated as of July 14, 2008 (the “Sublease”)
pursuant to which Subtenant subleases a portion of the Building more
particularly described in the Sublease (the “Subleased Premises”).

          Subtenant
desires to be assured of the continued use and occupancy of the Subleased
Premises under the terms of the Sublease if the term of the Operating Sublease
is terminated or expires prior to the last day of the term of the Sublease.

          Master
Lessee agrees to such continued use and occupancy by Subtenant, provided that
Subtenant agrees to recognize and attorn to Master Lessee.

          NOW,
THEREFORE, in consideration of the premises and covenants herein contained, it
is agreed:

          1.
Subject to the provisions
hereinafter provided, the Sublease and all of the rights under the Sublease are
and shall remain subject and subordinate to the Master Lease and to all of the
terms thereof and the Master Lessee’s rights thereunder.

          2.
If the term of the
Operating Sublease is terminated or expires prior to the expiration of the term
of the Sublease, then (a) the Sublease shall not be terminated, (b) Master
Lessee shall not name or join Subtenant in summary or other proceedings to
obtain possession of the Subleased Premises or to terminate the Sublease and
(c) Master Lessee shall not disturb the use and occupancy of Subtenant under the
Sublease so long as, with respect to each of clauses (a), (b) and (c),
Subtenant is not in default, beyond any applicable notice and/or cure period,
of any term, covenant or condition of the Sublease to be performed or satisfied
by Subtenant.

          3.
If the term of the Operating Sublease is terminated or expires prior to the
expiration of the term of the Sublease, Subtenant shall attorn to Master Lessee
as the sublandlord under the Sublease. All rights and obligations under the
Sublease shall continue as though such termination or expiration of the term of
the Operating Sublease had not occurred. The provisions of the foregoing two
sentences are intended to be effected automatically and be self-operative
without the need for further documentation to effect. Subtenant waives the
provisions of any statute or rule of law now or hereafter in effect that may
give or purport to give Subtenant any right or election to terminate or
otherwise adversely affect the Sublease and the obligations of Subtenant thereunder
by reason of any such termination or expiration of the term of the Lease.

          4.
Notwithstanding anything in this Agreement set forth to the contrary, Master
Lessee shall not in any event (a) be liable for any previous act, omission,
default, misrepresentation or breach of any warranty of Sublandlord, but the
foregoing shall not be construed or interpreted as exculpating Master Lessee
from liability for any damages, fees, costs or expenses arising out of Master
Lessee’s failure to perform any obligation of any prior landlord (including
Sublandlord), to the extent such failure continues following the date that
Master Lessee succeeded to the interest of Sublandlord under the Sublease (the
“Succession
Date”), (b) be subject to any offsets, credits, claims,
counterclaims or defenses that Subtenant may be entitled to assert against
Sublandlord; provided, however, that Master Lessee shall be subject to offsets,
credits, claims, counterclaims or defenses in favor of Subtenant to the extent
that they relate to any unfunded installment of Landlord’s Contribution (as
defined in the Sublease) payable to Subtenant pursuant to the terms of the
Sublease, (c) be bound by any amendment to or modification of the Sublease made
without the prior written consent of Master Lessee, except for any such
amendment or modification made pursuant to provisions of the Sublease that
prescribe such amendment or modification and specify the subject matter
thereof, (d) be bound by any payment by Subtenant of any rent in advance beyond
one month’s rent paid in accordance with the terms of the Sublease or (e) be
responsible for or with respect to the retention, application and/or return to
Subtenant of any security deposit paid to Sublandlord, whether or not still
held by Sublandlord, unless and until Master Lessee has actually received, or
been credited with, the full amount of such security deposit. It is agreed that
after the Succession Date, nothing herein shall be deemed to relieve Master
Lessee from performing, in accordance with the terms of the Sublease and this
Agreement, the obligations of the Sublandlord under the Sublease if the same
have not been performed as of the Succession Date and any other obligation that
may accrue thereafter. If any obligation of Sublandlord shall not have been
performed prior to the Succession Date and Master Lessee is required to perform
the same after the Succession Date pursuant to the terms of the Sublease and/or
this Agreement, and if Master Lessee shall default in its obligation to perform
the same, then Subtenant’s remedies for such non-performance shall be as
prescribed in the Sublease or as may exist at law. Notwithstanding anything
herein to the contrary, Master Lessee shall not be liable for any monetary
damages accruing prior to the Succession Date as a result of Sublandlord’s
failure to perform any obligation required under the Sublease to have been
performed prior to the Succession Date, except as otherwise provided in clause
(b) of this Paragraph 4.

          5.
If any default (which includes any act or failure to act) shall occur that
shall permit Subtenant to terminate the term of the Sublease or cancel such
Sublease (whether immediately or after the lapse of time) (a “Termination
Right”), Subtenant shall promptly give Master Lessee notice of
such event and a reasonable opportunity to remedy such event (but not less than
(a) ten (10) business days after such notice in the case of a monetary default
and (b) thirty (30) days in all other circumstances). If Master Lessee shall
have cured any monetary default within the aforesaid time period or have
commenced to effect such a cure within the relevant time period in all other
cases (and continue to act diligently to prosecute such cure to completion),
then Subtenant shall not effect such a termination and the Sublease shall
continue in effect pursuant to its terms. Master Lessee shall be entitled to
additional time to cure such default if (x) Master Lessee shall require more
than thirty (30) days following such notice to remedy the default (other than a
monetary default) giving rise to the Termination Right, (y) Master Lessee shall
have given notice of its intention to remedy the event within ten (10) days
following its receipt of Subtenant’s notice and (z) thereafter promptly takes
and diligently pursues commercially reasonable steps to effect such remedy.

          6.
In all events, the liability of Master Lessee to Subtenant whether under this
Agreement or the Sublease and Subtenant’s right to be made whole for any
damage, injury or loss it may sustain shall be limited and restricted to Master
Lessee’s estate in the Subleased Premises and the proceeds of any sale thereof
and shall in no event exceed such interest or proceeds. In no event shall
Subtenant name or seek to name any member, agent, employee or affiliate of
Master Lessee in any action, proceeding, arbitration or other form of
litigation, whether to collect any deficiency or otherwise, in connection with
any claim arising out of or in connection with the Sublease or this Agreement (whether
before or after the expiration or earlier termination of the term of the
Lease).

          7.
Any notice required or desired to be given in connection with this Agreement
shall be in writing and shall be given to the parties hereto at the addresses
set forth below by (a) personal delivery to the person to whom notices are
designated to be given hereunder or (b) by facsimile transmittal, provided that
such transmittal is electronically confirmed to have been successfully sent and
an original, executed copy of such notice is delivered personally within one
(1) business day to the designated recipient of such notice. Notices shall be
deemed effective upon receipt by the designated person but the failure of any
such person to accept any notice or the failure to deliver

2

any such notice because any
designated recipient is not available to receive the same shall not be deemed
to invalidate the effectiveness of such notice. Notices shall be addressed as
follows:

	
  

 	
  

 
	
  

 	
 To Master Lessee:

 
	
  

 	
 Empire State Building
 Associates L.L.C. 

 
	
  

 	
 c/o Wien & Malkin LLP

 
	
  

 	
 60 East 42nd Street

 
	
  

 	
 New York, New York 10165

 
	
  

 	
 Attention: Senior Asset
 Manager

 
	
  

 	
 Facsimile Number: (212)
 850-2796

 
	
  

 	
  

 
	
  

 	
 To Subtenant:

 
	
  

 	
 Coty Inc.

 
	
  

 	
 Two Park Avenue

 
	
  

 	
 New York, New York 10016

 
	
  

 	
 Attention: Chief Financial
 Officer 

 
	
  

 	
 Facsimile Number: (212)
 479-4508

 
	
  

 	
  

 
	
  

 	
 With a copy to:

 
	
  

 	
  

 
	
  

 	
 Coty Inc.

 
	
  

 	
 Two Park Avenue

 
	
  

 	
 New York, New York 10016

 
	
  

 	
 Attention: General Counsel

 
	
  

 	
 Facsimile Number: (212)
 479-4328

 

Each
party hereto may designate a different person and address for the receipt of
notices by notice given in the aforesaid manner.

          8.
A “business day” is deemed to be any day, except Saturday, Sunday and any day
that a majority of the commercial banks chartered by the State of New York
having branches in the Borough of Manhattan are closed for the purpose of
accepting deposits (other than by automatic teller machine or similar devices
or by electronic transfer of funds).

          9.
The provisions of this Agreement are binding upon and shall inure to the
benefit of the successors and assigns of the parties hereto.

          10.
If there is any conflict or ambiguity between any term of this Agreement and
any term of the Sublease, the term of this Agreement shall control.

          11.
This Agreement shall be governed by and construed in accordance with the
substantive laws of the State of New York without giving effect to any choice
or conflicts of law doctrine or policy. Any legal proceeding respecting any
cause of action or claim arising hereunder shall be brought in the courts of
the State of New York sitting in the County of New York.

          12.
Master Lessee and Subtenant waive trial by jury in any action or proceeding or
counterclaim arising out of this Agreement brought or made by either of them.

          13.
This Agreement may not be amended or terminated orally.

          14.
This Agreement constitutes the sole agreement between the parties with respect
to the subject matter hereof and supersedes any prior agreement (written or
oral) between them with respect to such subject matter.

          15.
This Agreement may be executed in two or more counterparts and all counterparts
so executed shall for all purposes constitute one agreement binding on all of
the parties hereto, notwithstanding that all parties

3

shall not have executed the
same counterparts. Facsimile and photocopy signatures on this Agreement shall
have the same force and effect as originals.

[SIGNATURE PAGE FOLLOWS]

4

          IN
WITNESS WHEREOF, the parties hereto have executed these presents the day and
year first above written.

	
  

 	
  

 	
  

 
	
  

 	
 EMPIRE STATE
 LAND ASSOCIATES L.L.C.

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: Peter
 L. Malkin

 
	
  

 	
 Title:
 Member

 
	
  

 	
  

 
	
  

 	
 COTY INC.

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:
 Michael Fishoff

 
	
  

 	
 Title: Chief
 Financial Officer

 

	
  

 	
  

 	
  

 
	
 STATE OF NEW
 YORK)

 	
  

 
	
  

 	
 :

 	
 ss.

 
	
 COUNTY OF
 NEW YORK)

 	
  

 

          On the ___
day of July, 2008, before me, the undersigned, personally appeared Peter L.
Malkin personally known to me or proved to me on the basis of satisfactory
evidence to be the individual(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 capacity(ies), and that by his/her/their signature(s) on the
instrument, the individual(s), or the person(s) on behalf of which the individual(s)
acted, executed the instrument.

	
  

 	
  

 
	
  

 	

 

 
	
  

 	
 Notary
 Public

 

	
  

 	
  

 	
  

 
	
 STATE OF NEW
 YORK)

 	
  

 
	
  

 	
 :

 	
 ss.

 
	
 COUNTY OF
 NEW YORK)

 	
  

 

          On
the ____ day of July, 2008, before me, the undersigned, personally
appeared _____________ personally known to me or proved to me on the basis of
satisfactory evidence to be the individual(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 capacity(ies), and that by his/her/their signature(s) on
the instrument, the individual(s), or the person(s) on behalf of which the
individual(s) acted, executed the instrument.

	
  

 	
  

 
	
  

 	

 

 
	
  

 	
 Notary
 Public

 

5

SCHEDULE
A

The Land

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

BEGINNING at the corner formed by the intersection of the southerly
side of 34th Street with the westerly side of 5th Avenue;

THENCE southerly along the westerly side of 5th Avenue 197
feet 6 inches to the northerly side of 33rd Street; 

THENCE westerly along the northerly side of 33rd Street 500
feet;

THENCE northerly and parallel with the westerly side of 5th
Avenue 98 feet 9 inches to the middle line of the block; 

THENCE easterly and parallel with the northerly side of 33rd
Street, 75 feet;

THENCE again northerly and parallel with the westerly side of 5th
Avenue and part of the distance through a party wall 98 feet 9 inches to the
southerly side of 34th Street;

THENCE easterly along the southerly side of 34th Street 425
feet to the corner aforesaid, the point or place of BEGINNING.

EXHIBIT 1

Master Lease

          Indenture
of Ground Lease dated 12-21-51 by and between The Prudential Insurance Company
of America, as landlord and Alglan Realty Corporation, Rostev Realty
Corporation and Bentob Realty Corporation as tenants, and recorded 12-21-51 in
Liber 4759 Page 534, as assigned and/or modified pursuant to:

          Modification
of Indenture of Lease between The Prudential Insurance Company of America and
Empire State Building Associates, dated 12-27-61, and recorded 12-27-61 in
Liber 5173 Page 49;

          Second
Modification of Indenture of Lease between The Prudential Insurance Company of
America and Empire State Building Associates, dated 2-15-65, and recorded
2-15-65 in Liber 5314 Page 479;

          Agreement
and Declaration by and between The Prudential Insurance Company of America and
Empire State Building Associates, dated 12-6-65, and recorded 12-10-65 in Liber
5353 Page 260.

EXHIBIT 2

Operating Sublease

          Terms,
Covenants, Conditions, Provisions, and Agreements of the Agreement of Sublease
dated 12/27/61 and recorded on 12/27/61 in Liber 5173 Page 155 made by Empire
State Building Associates, as sub-landlord, to Lawrence A. Wien, Harry B.
Helmsley, Martin Weiner Realty Corporation and Parempco Inc., Joint Venturers,
associated under the name of Empire State Building Company, as sub-tenant., and
with respect thereto:

          Terms,
Covenants, Conditions and Provisions of First Modification of Sublease between
Empire State Building Associates, as sublandlord, and Lawrence A. Wien, Harry
B. Helmsley, Wico Trading Corporation and Martin Weiner Realty Corporation,
Joint Venturers associated under the name of Empire State Building Company,
subtenants, (with consent from The Prudential Insurance Company of America)
dated 2/15/65 and recorded on 2/15/65 in Liber 5315 Page 1.

2

EXHIBIT C-2

NON-DISTURBANCE AGREEMENT WITH FEE OWNER

NON-DISTURBANCE AND ATTORNMENT AGREEMENT

          NON-DISTURBANCE
AND ATTORNMENT AGREEMENT (this “Agreement”) dated as of July 14,
2008, between EMPIRE STATE LAND ASSOCIATES L.L.C. (“Owner”), a limited liability company
organized and existing under the laws of the State of New York, having its
principal place of business c/o Wien & Malkin LLP, 60 East 42nd Street, New
York, New York 10165; and COTY INC. (“Subtenant”), a corporation
organized and existing under the laws of the State of Delaware, having an
address at Two Park Avenue, New York, New York 10016.

W I T N E S S E T H:

          Owner
owns the fee title to the land described on Schedule A annexed hereto and made
part hereof (the “Land”)and
the building (the “Building”) known as The Empire
State Building, 350 Fifth Avenue, New York, New York. Owner leases the Land and
Building to Empire State Building Associates L.L.C. (the “Master
Lessee”)pursuant to the Ground Lease described on
Exhibit 1 annexed hereto and made part hereof (as amended,
supplemented or otherwise modified from time to time, the “Master
Lease”). In turn, Master Lessee sublets the Land and
Building to Empire State Building Company L.L.C. (“Sublandlord”)pursuant to that certain Agreement
of Sublease more particularly described in Exhibit 2 annexed hereto and made part
hereof (as amended, supplemented or otherwise modified from time to time, the “Operating
Sublease”).

          Sublandlord
and Subtenant entered into a Lease dated as of July 14, 2008 (the “Sublease”), pursuant to which Subtenant
subleases a portion of the Building more particularly described in the Sublease
(the “Subleased
Premises”).

          Subtenant
desires to be assured of the continued use and occupancy of the Subleased
Premises under the terms of the Sublease if the terms of the Master Lease and
the Operating Sublease are terminated or expire prior to the last day of the
term of the Sublease.

          Owner
agrees to such continued use and occupancy by Subtenant, provided that
Subtenant agrees to recognize and attorn to Owner.

          NOW,
THEREFORE, in consideration of the premises and covenants herein contained, it
is agreed:

          1.
If the terms of the Master Lease and Operating Sublease are terminated or
expire prior to the expiration of the term of the Sublease, then (a) the
Sublease shall not be terminated, (b) Owner shall not name or join Subtenant in
summary or other proceedings to obtain possession of the Subleased Premises or
to terminate the Sublease and (c) Owner shall not disturb the use and occupancy
of Subtenant under the Sublease so long as, with respect to each of clauses
(a), (b) and (c), Subtenant is not in default, beyond any applicable notice
and/or cure period, of any term, covenant or condition of the Sublease to be performed or satisfied by
Subtenant.

          2.
If the terms of the Master Lease and Operating Sublease are terminated or
expire prior to the expiration of the term of the Sublease, Subtenant shall
attorn to Owner as the sublandlord under the Sublease. All rights and
obligations under the Sublease shall continue as though such termination or
expiration of the terms of each of the Master Lease and Operating Sublease had
not occurred. The provisions of the foregoing two sentences are intended to be
effected automatically and be self-operative without the need for further
documentation to effect. Subtenant waives the provisions of any statute or rule
of law now or hereafter in effect that may give or purport to give Subtenant
any right or election to terminate or otherwise adversely affect the Sublease
and the obligations of Subtenant thereunder by reason of any such termination
or expiration of the term of the Master Lease or of the Operating Sublease.

          3.
Notwithstanding anything in this Agreement set forth to the contrary, Owner
shall not in any event (a) be liable for any previous act, omission, default,
misrepresentation or breach of any warranty of Sublandlord, but the foregoing
shall not be construed or interpreted as exculpating Owner from liability for
any damages, fees, costs 

or
expenses arising out of Owner’s failure to perform any obligation of any prior
landlord (including Sublandlord), to the extent such failure continues
following the date that Owner succeeded to the interest of Sublandlord under
the Sublease (the “Succession Date”), (b) be subject to any offsets, credits,
claims, counterclaims or defenses that Subtenant may be entitled to assert
against Sublandlord; provided, however, that Owner shall be subject to offsets,
credits, claims, counterclaims or defenses in favor of Subtenant to the extent
that they relate to any unfunded installment of Landlord’s Contribution (as
defined in the Sublease) payable to Subtenant pursuant to the terms of the
Sublease, (c) be bound by any amendment to or modification of the Sublease made
without the prior written consent of Owner, except for any such amendment or
modification made pursuant to provisions of the Sublease that prescribe such
amendment or modification and specify the subject matter thereof, (d) be bound
by any payment by Subtenant of any rent in advance beyond one month’s rent paid
in accordance with the terms of the Sublease or (e) be responsible for or with
respect to the retention, application and/or return to Subtenant of any
security deposit paid to Sublandlord, whether or not still held by Sublandlord,
unless and until Owner has actually received, or been credited with, the full
amount of such security deposit. It is agreed that after the Succession Date,
nothing herein shall be deemed to relieve Owner from performing, in accordance
with the terms of the Sublease and this Agreement, the obligations of
Sublandlord under the Sublease if the same have not been performed as of the
Succession Date and any other obligation that may accrue thereafter. If any
obligation of Sublandlord shall not have been performed prior to the Succession
Date and Owner is required to perform the same after the Succession Date
pursuant to the terms of the Sublease and/or this Agreement, and if Owner shall
default in its obligation to perform the same, then Subtenant’s remedies for
such non-performance shall be as prescribed in the Sublease or as may exist at
law. Notwithstanding anything herein to the contrary, Master Lessee shall not
be liable for any monetary damages accruing prior to the Succession Date as a
result of Sublandlord’s failure to perform any obligation required under the
Sublease to have been performed prior to the Succession Date, except as
otherwise provided in clause (b) of this Paragraph 3.

          4.
If any default (which
includes any act or failure to act) shall occur that shall permit Subtenant to
terminate the term of the Sublease or cancel such Sublease (whether immediately
or after the lapse of time) (a “Termination Right”), Subtenant shall promptly give Owner
notice of such event and a reasonable opportunity to remedy such event (but not
less than (a) ten (10) business days after such notice in the case of a
monetary default and (b) thirty (30) days in all other circumstances). If Owner
shall have cured any monetary default within the aforesaid time period or have
commenced to effect such a cure within the relevant time period in all other
cases (and continue to act diligently to prosecute such cure to completion),
then Subtenant shall not effect such a termination and the Sublease shall
continue in effect pursuant to its terms. Owner shall be entitled to additional
time to cure such default if (x) Owner shall require more than thirty (30) days
following such notice to remedy the default (other than a monetary default)
giving rise to the Termination Right, (y) Owner shall have given notice of its
intention to remedy the event within ten (10) days following its receipt of
Subtenant’s notice and (z) Owner promptly takes and diligently pursues
commercially reasonable steps to effect such remedy.

          5.
In all events, the
liability of Owner to Subtenant whether under this Agreement or the Sublease
and Subtenant’s right to be made whole for any damage, injury or loss it may
sustain shall be limited and restricted to Owner’s estate in the Subleased
Premises and the proceeds of any sale thereof and shall in no event exceed such
interest or proceeds. In no event shall Subtenant name or seek to name any
member, agent, employee or affiliate of Owner in any action, proceeding,
arbitration or other form of litigation, whether to collect any deficiency or
otherwise, in connection with any claim arising out of or in connection with
the Sublease or this Agreement (whether before or after the expiration or
earlier termination of the term of the Lease).

          6.
Any notice required or
desired to be given in connection with this Agreement shall be in writing and
shall be given to the parties hereto at the addresses set forth below by (a)
personal delivery to the person to whom notices are designated to be given
hereunder or (b) by facsimile transmittal, provided that such transmittal is
electronically confirmed to have been successfully sent and an original,
executed copy of such notice is delivered personally within one (1) business
day to the designated recipient of such notice. Notices shall be deemed
effective upon receipt by the designated person but the failure of any such person to accept any notice or the
failure to deliver any such notice because any designated recipient is not
available to receive the same shall not be deemed to invalidate the
effectiveness of such notice. Notices shall be addressed as follows:

	
  

 	
  

 
	
  

 	
 To Owner:

 
	
  

 	
 Empire State Land
 Associates L.L.C. 

 

2

	
  

 	
  

 
	
  

 	
 c/o Wien & Malkin LLP

 
	
  

 	
 60 East 42nd Street

 
	
  

 	
 New York, New York 10165

 
	
  

 	
 Attention: Senior Asset
 Manager 

 
	
  

 	
 Facsimile Number: (212)
 850-2796

 
	
  

 	
  

 
	
  

 	
 To Subtenant:

 
	
  

 	
 Coty Inc.

 
	
  

 	
 Two Park Avenue

 
	
  

 	
 New York, New York 10016 

 
	
  

 	
 Attention: Chief Financial
 Officer 

 
	
  

 	
 Facsimile No.: (212)
 479-4508

 
	
  

 	
  

 
	
  

 	
 With a copy to:

 
	
  

 	
 Coty Inc.

 
	
  

 	
 Two Park Avenue

 
	
  

 	
 New York, New York 10016 

 
	
  

 	
 Attention: General Counsel
 

 
	
  

 	
 Facsimile No.: (212)
 479-4328

 

Each
party hereto may designate a different person and address for the receipt of
notices by notice given in the aforesaid manner.

          7.
A “business day” is deemed to be any day, except Saturday, Sunday and any day
that a majority of the commercial banks chartered by the State of New York
having branches in the Borough of Manhattan are closed for the purpose of
accepting deposits (other than by automatic teller machine or similar devices
or by electronic transfer of funds).

          8.
The provisions of this Agreement are binding upon and shall inure to the
benefit of the successors and assigns of the parties hereto.

          9.
If there is any conflict or ambiguity between any term of this Agreement and
any term of the Sublease, the term of this Agreement shall control.

          10.
This Agreement shall be governed by and construed in accordance with the
substantive laws of the State of New York without giving effect to any choice
or conflicts of law doctrine or policy. Any legal proceeding respecting any
cause of action or claim arising hereunder shall be brought in the courts of
the State of New York sitting in the County of New York.

          11.
Owner and Subtenant waive trial by jury in any action or proceeding or
counterclaim arising out of this Agreement brought or made by either of them.

          12.
This Agreement may not be amended or terminated orally.

          13.
This Agreement constitutes the sole agreement between the parties with respect
to the subject matter hereof and supersedes any prior agreement (written or
oral) between them with respect to such subject matter.

          14.
This Agreement may be executed in two or more counterparts and all counterparts
so executed shall for all purposes constitute one agreement binding on all of
the parties hereto, notwithstanding that all parties shall not have executed
the same counterparts. Facsimile and photocopy signatures on this Agreement
shall have the same force and effect as originals.

[SIGNATURE PAGE FOLLOWS]

3

          IN
WITNESS WHEREOF, the parties hereto have executed these presents the day and
year first above written.

	
  

 	
  

 	
  

 
	
  

 	
 EMPIRE STATE LAND
 ASSOCIATES L.L.C.

 
	
  

 	
  

 	
  

 
	
  

 	
 By: Empire State Building
 Associates L.L.C., 

 Member

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: Peter L. Malkin

 
	
  

 	
 Title: Member

 
	
  

 	
  

 
	
  

 	
 COTY INC.

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: Michael Fishoff

 
	
  

 	
 Title: Chief Financial
 Officer

 

	
  

 	
  

 	
  

 
	
 STATE OF NEW YORK  )

 	
  

 
	
  

 	
 :

 	
 ss.

 
	
 COUNTY OF
 NEW YORK

 	
 )

 	
  

 

          On
the ___ day of July, 2008, before me, the undersigned, personally appeared
Peter L. Malkin personally known to me or proved to me on the basis of
satisfactory evidence to be the individual whose name is subscribed to the
within instrument and acknowledged to me that he executed the same in his
capacity, and that by his signature on the instrument, the individual, or the
person on behalf of which the individual acted, executed the instrument.

	
  

 	
  

 
	
  

 	

 

 
	
  

 	
 Notary Public

 

	
  

 	
  

 	
  

 
	
 STATE OF NEW YORK  )

 	
  

 
	
  

 	
 :

 	
 ss.

 
	
 COUNTY OF NEW YORK

 	
 )

 	
  

 

          On
the ___ day of July, 2008, before me, the undersigned, personally appeared
_______________ personally known to me or proved to me on the basis of
satisfactory evidence to be the individual(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 capacity(ies), and that by his/her/their signature(s) on
the instrument, the individual(s), or the person(s) on behalf of which the
individual(s) acted, executed the instrument.

	
  

 	
  

 
	
  

 	

 

 
	
  

 	
 Notary Public

 

4

SCHEDULE A

The Land

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

BEGINNING at the corner formed by the intersection of the southerly
side of 34th Street with the westerly side of 5th Avenue;

THENCE southerly along the westerly side of 5th Avenue 197
feet 6 inches to the northerly side of 33rd Street; 

THENCE westerly along the northerly side of 33rd Street 500
feet;

THENCE northerly and parallel with the westerly side of 5th
Avenue 98 feet 9 inches to the middle line of the block; 

THENCE easterly and parallel with the northerly side of 33rd
Street, 75 feet;

THENCE again northerly and parallel with the westerly side of 5th Avenue and part of the distance through a party wall 98 feet 9
inches to the southerly side of 34th Street;

THENCE easterly along the southerly side of 34th Street 425 feet to the corner
aforesaid, the point or place of BEGINNING.

EXHIBIT 1

Master Lease

          Indenture
of Ground Lease dated 12-21-51 by and between The Prudential Insurance Company
of America, as landlord and Alglan Realty Corporation, Rostev Realty
Corporation and Bentob Realty Corporation as tenants, and recorded 12-21-51 in
Liber 4759 Page 534, as assigned and/or modified pursuant to:

          Modification
of Indenture of Lease between The Prudential Insurance Company of America and
Empire State Building Associates, dated 12-27-61, and recorded 12-27-61 in Liber
5173 Page 49;

          Second
Modification of Indenture of Lease between The Prudential Insurance Company of
America and Empire State Building Associates, dated 2-15-65, and recorded
2-15-65 in Liber 5314 Page 479;

          Agreement
and Declaration by and between The Prudential Insurance Company of America and
Empire State Building Associates, dated 12-6-65, and recorded 12-10-65 in Liber
5353 Page 260.

EXHIBIT 2

Operating Sublease

          Terms,
Covenants, Conditions, Provisions, and Agreements of the Agreement of Sublease
dated 12/27/61 and recorded on 12/27/61 in Liber 5173 Page 155 made by Empire
State Building Associates, as sub-landlord, to Lawrence A. Wien, Harry B.
Helmsley, Martin Weiner Realty Corporation and Parempco Inc., Joint Venturers,
associated under the name of Empire State Building Company, as sub-tenant., and
with respect thereto:

          Terms,
Covenants, Conditions and Provisions of First Modification of Sublease between
Empire State Building Associates, as sublandlord, and Lawrence A. Wien, Harry
B. Helmsley, Wico Trading Corporation and Martin Weiner Realty Corporation,
Joint Venturers associated under the name of Empire State Building Company,
subtenants, (with consent from The Prudential Insurance Company of America)
dated 2/15/65 and recorded on 2/15/65 in Liber 5315 Page 1.

2

EXHIBIT C-3

SUBORDINATION.
ATTORNMENT AND NON-DISTURBANCE AGREEMENT WITH

CAPITAL ONE, N.A.

SUBORDINATION
NON-DISTURBANCE AND ATTORNMENT AGREEMENT

	
  

 
	

 

 
	
  

 
	
 CAPITAL ONE, N.A.

 
	
  

 
	
 - with -

 
	
  

 
	
 COTY INC.

 
	
  

 
	

 

 
	
  

 
	
 PREPARED BY:

 

SUBORDINATION
NONDISTURBANCE AND ATTORNMENT AGREEMENT

          This
Subordination Nondisturbance and Attornment Agreement (being hereinafter
referred to as this “Agreement”) made as of this _____ day of July, 2008,
between CAPITAL ONE, N.A.
a national banking association, successor by merger to North Fork Bank, having
its principal offices at 275 Broadhollow Road, Melville, New York (“Mortgagee”)
and COTY INC., a
Delaware corporation, having an office at Two Park Avenue, New York, New York
10016 (“Tenant”).

W
I T N E S S E T H:

          WHEREAS,
Mortgagee now owns and holds a certain mortgage set
forth on Schedule A annexed hereto (including, without limitation, all
present and future renewals, modifications, consolidations, spreaders,
replacements and extensions thereof, the “Mortgage”), made between Mortgagee
and Empire State Land Associates L.L.C. (“ESLA”) and Empire State Building
Associates L.L.C. (“ESBA”; ESBA and ESLA, collectively, “Mortgagor”), which
Mortgage affects, among other things, (i) that certain parcel of land more
particularly described in Schedule B annexed hereto (the
“Property”) and (ii) the improvements located thereon (the “Building”); and

          WHEREAS,
by lease dated July _____, 2008 (the “Lease”), a true
copy of which has been furnished to Mortgagee, Empire State Building Company
L.L.C. (“Landlord”) has leased and demised to Tenant and Tenant has hired and
taken from Landlord a portion of the Building more particularly described in
the Lease (the “Demised Premises”); and

          WHEREAS,
at the request of Tenant, Mortgagee is willing to
enter into this Agreement with Tenant upon the terms, covenants and conditions
contained herein.

          NOW,
THEREFORE, in consideration of the foregoing premises
and the covenants and agreements hereinafter set forth, the parties hereto
mutually covenant and agree as follows:

          1.
Subject to the provisions hereinafter provided, the Lease and all
rights of Tenant thereunder are and shall be subject and subordinate to the
Mortgage and to each and every advance made or to be made thereunder. The
provisions of this paragraph shall be self-operative and no further instrument
of subordination shall be required or needed. Nevertheless, in confirmation of
such subordination, Tenant shall, at the reasonable request of the holder of
the Mortgage, promptly execute, acknowledge and deliver such further instrument
of subordination as may be required by such holder so long as such instrument
does not increase the obligations and liabilities of Tenant as provided
hereunder.

          2.
As long as no default under the Lease on the part of Tenant then
exists beyond the expiration of any notice and grace period:

                    (a)
Tenant shall not be named or joined as a party defendant in any foreclosure
action or proceeding to collect the debt secured by the Mortgage which may be
instituted or taken by Mortgagee under or in connection with the Mortgage or
any obligation 

secured thereby or by any holder of the Mortgage or by any holder of
any interest in the Mortgage or by any successor or assignee of such interest
(unless required by law); and

                    (b)
Tenant shall not be evicted from the Demised Premises or any part(s) thereof
nor shall Tenant’s leasehold estate or possession of the Demised Premises under
the Lease be terminated or disturbed nor shall any of Tenant’s rights under the
Lease be affected in any way solely by reason of any default under the
Mortgage.

          3. If
Mortgagee or any holder of the Mortgage or any holder of any interest in the
Mortgage or any successor or assignee of any one or more of the foregoing shall
succeed to the rights of Mortgagor or Landlord under the lease, whether through
possession or foreclosure action or delivery of a new deed, then the Lease
shall not terminate and Tenant shall attorn to and recognize the party so
succeeding to Landlord’s rights (such party being hereinafter referred to as
the “Successor Landlord”) as Tenant’s landlord under the Lease and Successor Landlord
shall be conclusively deemed to have accepted such attornment and shall
recognize Tenant as tenant under the Lease. Tenant shall promptly execute and
deliver any instrument that Successor Landlord may reasonably request to
evidence such attornment (so long as such instrument does not increase the
obligations and liabilities of Tenant as provided hereunder). Upon such
attornment the Lease shall continue in full force and effect as, or as if it
were, a direct lease between Successor Landlord and Tenant upon all of the same
terms, conditions and covenants as are set forth in the Lease, except that
Successor Landlord shall not:

                    (a)
be responsible for any monies owing by or on deposit with
Landlord to the credit of Tenant, except to the extent turned over to Successor
Landlord;

                    (b)
be bound by any previous modification or extension of the Lease not expressly
provided for in the Lease such as in Articles 4, 32 and 43 of the Lease or by
any previous prepayment of rent for more than one (1) month, unless such
modification, extension or prepayment shall have been expressly approved in
writing by Mortgagee;

                    (c)
be liable for any act, omission, neglect or default on the part of Landlord
under the Lease, but the foregoing shall not be construed or interpreted as
exculpating Successor Landlord from liability for any damages, fees, costs or
expenses arising out of Successor Landlord’s failure to perform any obligations
of any prior landlord, which failure continues following the date title to the
Property is transferred to Successor Landlord; or

                    (d)
be subject to any claim, counterclaim, defense or setoff which shall have
theretofore accrued to Tenant against Landlord.

          4. No modifications
may be made to the Lease by Landlord and/or Tenant without Mortgagee’s prior
written consent except for any modifications made to the Lease pursuant to the
provisions of Articles 4, 32 and 43 of the Lease. Landlord shall not
unreasonably withhold or delay its consent to any modification of the Lease
requiring Landlord’s consent, provided that such modifications do not
materially alter the economic or other material terms of the Lease.

          5. Tenant
hereby represents and warrants to Mortgagee that as of the date hereof (i)
Tenant is the owner and holder of the tenant’s interest under the Lease, (ii)
the Lease has not been modified or amended, (iii) the Lease is in full force
and effect in accordance with its terms,

(iv) to the best of Tenant’s knowledge, neither Tenant nor Landlord is
in default under any of the terms, covenants or provisions of the Lease which
default has continued beyond the expiration of any applicable cure period, no
event has occurred which but for the passage of time or the giving of notice or
both would constitute an event of default by Tenant or Landlord under the
Lease, (v) neither Tenant nor Landlord has commenced any action or given or
received any notice for the purpose of terminating the Lease, (vi) all rents, additional
rents and other sums due and payable under the Lease have been paid in full and
no rents, additional rents or other sums payable under the Lease have been paid
for more than one (1) month in advance of the due dates thereof, and (vii) to
the best of Tenant’s knowledge, there are no offsets or defenses to the payment
of the rents, additional rents, or other sums payable by Tenant under the
Lease.

          6. Tenant
agrees that if there shall occur any action or omission by Landlord which would
give Tenant the right to terminate the Lease or to claim a partial or total
eviction, Tenant shall not exercise any such right until (i) Tenant has
notified Mortgagee in writing of such act or omission and, provided Mortgagee
shall have notified Tenant of Mortgagee’s intention to cure such act or
omission within thirty (30) days after Mortgagee’s receipt of Tenant’s notice,
(ii) a reasonable period for commencing and curing the remedy of such act or
omission shall have elapsed following the giving of such notice by Tenant
(which reasonable period shall in no event be (x) less than the period to which
Landlord would be entitled under the Lease or otherwise after similar notice to
effect such remedy and (y) more than ninety (90) days after the period to which
Landlord would be entitled under the Lease or otherwise after similar notice to
effect such remedy), and Mortgagee shall have failed, within such reasonable
period, to commence and continue to remedy such act or omission and to cause
the same to be remedied.

          7. This
Agreement may not be discharged or modified orally or in any manner other than
by an instrument in writing specifically referring to this Agreement and signed
by a duly authorized officer or other representative of Mortgagee and by a duly
authorized or other representative of Tenant.

          8. This
Agreement constitutes the entire agreement between the parties with respect to
the subject matter hereof.

          9. The
covenants and agreements herein contained shall apply to, inure to the benefit
of, and be binding upon Mortgagee, Tenant and their respective successors,
assigns and legal representatives.

          10. This
Agreement may be executed in multiple counterparts, each of which shall be
deemed an original, but all of which, together, shall constitute one and the
same instrument.

[SIGNATURE PAGES FOLLOW]

          IN
WITNESS WHEREOF, Mortgagee and Tenant, intended to be
legally bound, have duly executed this Agreement as of the day and year first
above written.

	
  

 	
  

 	
  

 
	
  

 	
 CAPITAL ONE, N.A.

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name: 

 
	
  

 	
  

 	
 Title: 

 
	
  

 	
  

 
	
  

 	
 COTY INC.

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Michael
 Fishoff

 
	
  

 	
  

 	
 Chief
 Financial Officer

 

	
  

 	
  

 	
  

 
	
 STATE OF NEW YORK

 	
 )

 	
  

 
	
  

 	
 : ss.:

 
	
 COUNTY OF

 	
 )

 	
  

 

          On the
______ day of _______, 2008 before me, the undersigned, personally appeared,
_________________, personally known to me or proved to me on the basis of
satisfactory evidence to be the individual whose name is subscribed to the
within instrument and acknowledged to me that he executed the same in his
capacity, and that by his signature on the instrument, the individual, or the
person on behalf of which the individual acted, executed the instrument.

	
  

 	
  

 
	
  

 	

 

 
	
  

 	
 Notary Public

 

	
  

 	
  

 	
  

 
	
 STATE OF NEW YORK

 	
 )

 	
  

 
	
  

 	
 : ss.:

 
	
 COUNTY OF NEW YORK

 	
 )

 	
  

 

          On
the ______ day of July, 2008, before me, the undersigned, personally
appeared MICHAEL FISHOFF, personally known to me or proved to me on the basis
of satisfactory evidence to be the individual whose name is subscribed to the
within instrument and acknowledged to me that he executed the same in his
capacity, and that by his signature on the instrument, the individual, or the
person on behalf of which the individual acted, executed the instrument.

	
  

 	
  

 
	
  

 	

 

 
	
  

 	
 Notary Public

 

2

SCHEDULE
A - MORTGAGE CHAIN

	
  

 	
  

 
	
 1.

 	
 Mortgage and Security Agreement dated June 28, 1994 in the principal
 amount of $11,700,000.00 made by Trump Empire State Partners to Principal
 Mutual Life Insurance Company and recorded July 1, 1994 in Reel 2111 Page
 2049 in the Office of the City Register, New York County;

 
	
  

 	
  

 
	
  

 	
 Mortgage Tax Paid: $321,750.00

 
	
  

 	
  

 
	
  

 	
 Which mortgage was assigned by Principal Mutual Life Insurance
 Company to North Fork Bank by Assignment of Mortgage dated as of April 9,
 2002 and recorded April 26, 2002 in Reel 3500 Page 805 in the Office of the
 City Register, New York County;

 
	
  

 	
  

 
	
  

 	
 which mortgage was spread to encumber the Leasehold Estate in the
 Mortgaged Property by Spreader Agreement dated as of April 17, 2002 made by
 and between Empire State Building Associates L.L.C. and Empire State Land
 Associates L.L.C. to North Fork Bank and recorded April 26, 2002 in Reel 3500
 Page 810 in the Office of the City Register, New York County

 
	
  

 	
  

 
	
 2.

 	
 Mortgage dated as of April 17, 2002 made by Empire State Building
 Associates L.L.C. and Empire State Land Associates L.L.C. to North Fork Bank
 in the principal sum of $48,800,000.00 and recorded April 26, 2002 in Reel
 3500 Page 819 in the Office of the City Register, New York County;

 
	
  

 	
  

 
	
  

 	
 Mortgage Tax Paid: $1,342,000.00;

 
	
  

 	
  

 
	
  

 	
 Which two (2) mortgages were consolidated to form a single lien of
 $60,500,000.00 by Consolidation and Extension Agreement dated as of April 17,
 2002 made by and among Empire State Building Associates L.L.C. and Empire
 State Land Associates L.L.C. and North Fork Bank and recorded April 26, 2002
 in Reel 3500 Page 831 in the Office of the City Register, New York County;

 
	
  

 	
  

 
	
  

 	
 Which two (2) mortgages, as consolidated, were modified by unrecorded
 Modification Agreement dated as of November 1, 2006 made by and among Empire
 State Building Associates L.L.C. and Empire State Land Associates L.L.C. and
 North Fork Bank.

 

3

SCHEDULE
B - LEGAL DESCRIPTION

SCHEDULE
A

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

BEGINNING at the corner formed by the intersection of the southerly
side of 34th Street with the westerly side of 5th Avenue;

THENCE southerly along the westerly side of 5th Avenue 197
feet 6 inches to the northerly side of 33rd Street;

THENCE westerly along the northerly side of 33rd Street 500
feet;

THENCE northerly and parallel with the westerly side of 5th
Avenue 98 feet 9 inches to the middle line of the block;

THENCE easterly and parallel with the northerly side of 33rd
Street, 75 feet;

THENCE again northerly and parallel with the westerly side of 5th
Avenue and part of the distance through a party wall 98 feet 9 inches to the
southerly side of 34th Street;

THENCE easterly along the southerly side of 34th Street 425
feet to the corner aforesaid, the point or place of BEGINNING.

Said premises known as: 350 Fifth Avenue, New York, N.Y.

4

EXHIBIT D

to lease

between

Empire State Building Company L.L.C.,
Landlord

and

Coty Inc., Tenant

List of Approved Contractors

	
  

 	
  

 	
  

 
	
  

 	
 Empire State Building

 	
 Page 1 of 13

 

ACM Removal

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 NAME

 	
  

 	
 ADDRESS

 	
  

 	
 TELEPHONE

 	
  

 	
 FAX

 	
  

 	
 CONTACT

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	
 Abatement Unlimited, Inc.

 	
  

 	
 666 Third
 Avenue, Arcade Level

 Suite ARH

 New York, NY 10017

 	
  

 	
 (212)
 661-0325

 	
  

 	
 (212)
 661-8174

 	
  

 	
 Bill
 McKenzie

 Charles (917) 731-5395

 abatementunltd@aol.com

 
	
 Affiliated Environmental

 	
  

 	
 450 South
 River Street

 Hackensack, NJ 07601

 	
  

 	
 (201)
 931-0313

 	
  

 	
 (201)
 931-0318

 	
  

 	
 Rene Repreza

 (201) 538-2249

 
	
 Complete Environmental Services

 	
  

 	
 3500A
 Hampton Road

 Oceanside, NY 11572

 	
  

 	
 (516)
 766-7900

 	
  

 	
 (516)
 766-5515

 	
  

 	
 Louis Forese

 
	
 DSA Services, Inc.

 	
  

 	
 800 East
 Elizabeth Avenue

 Linden, NJ 07036

 	
  

 	
 (908)
 925-5855

 	
  

 	
 (908)
 925-5998

 	
  

 	
 Anthony
 Frassetti

 Panos Yalamas

 (917) 578-7239

 
	
 Ken Burns Action Environmental

 	
  

 	
 3010 Burns
 Avenue

 Wantagh, NY 11793

 	
  

 	
 (516)
 781-3000

 	
  

 	
 (516)
 781-3085

 	
  

 	
 Ken Burns

 (516) 972-1118

 
	
 PAL

 	
  

 	
 11-02 Queens
 Plaza South

 LIC, NY 11101

 	
  

 	
 (718)
 349-0900

 	
  

 	
 (718)
 349-2800

 	
  

 	
 Sanford
 Alper

 
	
 PAR Environmental

 	
  

 	
 313 Spook
 Rock Road

 Suffern, NY 10901

 	
  

 	
 (845)
 369-7500

 	
  

 	
 (845)
 369-6682

 	
  

 	
 Mary Velez

 
	
 Shannon Abatement

 	
  

 	
 14
 Highbridge Road

 Stony Point, NY 10980

 	
  

 	
 (845)
 429-4346

 	
  

 	
 (845)
 947-1030

 	
  

 	
 Martin
 Butler

 

	
  

 	
  

 	
  

 
	
  

 	
 Empire State Building

 	
 Page 2 of 13

 

Air Monitoring

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 NAME

 	
  

 	
 ADDRESS

 	
  

 	
 TELEPHONE

 	
  

 	
 FAX

 	
  

 	
 CONTACT

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	
 Advanced Environmental

 	
  

 	
 347 Fifth
 Avenue, Suite 404

 New York, NY 10016

 	
  

 	
 (212)
 545-1855

 	
  

 	
 (212)
 545-0757

 	
  

 	
 Ed Nameth

 
	
 Applied Geo Services

 	
  

 	
 875 Avenue
 of the Americas

 Suite 1103

 New York, NY 10001

 	
  

 	
 (212)
 868-1113

 	
  

 	
 (212)
 868-8307

 	
  

 	
 Joseph
 Bonder

 
	
 Asbestos Control Consultants

 	
  

 	
 1302 Walnut
 Avenue

 Bohemia, NY 11716

 	
  

 	
 (631)
 589-3666

 	
  

 	
 (631)
 589-4004

 	
  

 	
 Anthony
 Norwicki

 
	
 Environmental Building Solutions

 	
  

 	
 295 Madison
 Avenue

 New York, NY 10017

 	
  

 	
 (646)
 290-5925

 	
  

 	
 (212)
 867-9715

 	
  

 	
 John Leitner

 
	
 Empire Environmental, Ltd.

 	
  

 	
 39 Old Lane

 Towaco, NJ 07082

 	
  

 	
 (973)
 334-5641

 	
  

 	
 (973)
 334-3508

 	
  

 	
 James R.
 Boggi

 
	
 Hygienetics Environmental

 	
  

 	
 151 West
 25th Street,

 Sixth Floor

 New York, NY 10001

 	
  

 	
 (212)
 414-8649

 	
  

 	
 (212)
 414-9658

 	
  

 	
 Jeff Bodell

 
	
 Landmark Consultants, Inc.

 	
  

 	
 350 Fifth
 Avenue, Suite 4914

 New York, NY 10118

 	
  

 	
 (212)
 967-2484

 	
  

 	
 (212)
 967-2499

 	
  

 	
 Jason Terhue

 Andrew Gasparro

 
	
 Pure Solutions

 	
  

 	
 303 Fifth
 Avenue, Suite 401

 New York, NY 10016

 	
  

 	
 (212)
 643-8548

 	
  

 	
 (212)
 643-8781

 	
  

 	
 Jack Rathgeb

 

	
  

 	
  

 	
  

 
	
  

 	
 Empire State Building

 	
 Page 3 of 13

 

Demolition

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 NAME

 	
  

 	
 ADDRESS

 	
  

 	
 TELEPHONE

 	
  

 	
 FAX

 	
  

 	
 CONTACT

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	
 Liberty

 Demolition

 	
  

 	
 2531 94th
 Street

 N. Bergen, NJ 07047

 	
  

 	
 (201)
 488-9300

 	
  

 	
 (201)
 868-4238

 	
  

 	
 George
 Fotadis

 
	
 Metro Demolition

 	
  

 	
 55-14 Grand
 Avenue

 Maspeth, NY 11378

 	
  

 	
 (718)
 326-8450

 	
  

 	
 (718)
 326-0375

 	
  

 	
 Dennis
 Halpern

 
	
 Tri-State

 Dismantling

 	
  

 	
 207 Dupont
 Street

 Brooklyn, NY 11222

 	
  

 	
 (718)
 349-2552

 	
  

 	
 (718)
 349-0289

 	
  

 	
 Richard
 Flamio

 
	
 Waldorf Carting

 	
  

 	
 50 E.
 Palisade Avenue

 Suite 111

 Englewood, NJ 07631

 	
  

 	
 (201)
 541-0030

 	
  

 	
 (201)
 541-0071

 	
  

 	
 James G.

 Marrone/

 Paul

 (917) 337-1134

 

	
  

 	
  

 	
  

 
	
  

 	
 Empire State Building

 	
 Page 4 of 13

 

Electrical Contractors

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 NAME

 	
  

 	
 ADDRESS

 	
  

 	
 TELEPHONE

 	
  

 	
 FAX

 	
  

 	
 CONTACT

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	
 Bigman Brothers, Inc.

 	
  

 	
 43-40 34th
 Street

 LIC, NY 11101

 	
  

 	
 (718)
 786-1421

 	
  

 	
 (718)
 786-1632

 	
  

 	
 Thomas
 Terino

 
	
 EJ Electric

 	
  

 	
 46-41 Vernon
 Boulevard

 LIC, NY 11101

 	
  

 	
 (718)
 786-9400

 	
  

 	
 (718)
 786-1001

 	
  

 	
 Larry Cohen

 (212) 564-8886

 (917) 559-3431

 
	
 JJ Rosenberg

 	
  

 	
 27 Herkimer
 Place

 Brooklyn, NY 11216

 	
  

 	
 (718)
 638-4544

 	
  

 	
 (718)
 638-4979

 	
  

 	
 Anthony
 Grillo

 Adrian (917) 560-5695

 
	
 Lite Tron Electric 

 	
  

 	
 236 West
 26th Street

 New York, NY 10001

 	
  

 	
 (212)
 741-6326

 	
  

 	
 (212)
 627-5825

 	
  

 	
 Fred Iannacone

 

	
  

 	
  

 	
  

 
	
  

 	
 Empire State Building

 	
 Page 5 of 13

 

Exterminators

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 NAME

 	
  

 	
 ADDRESS

 	
  

 	
 TELEPHONE

 	
  

 	
 FAX

 	
  

 	
 CONTACT

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	
 Assured Enviroments

 	
  

 	
 45 Broadway
 8th Floor

 New York, NY 10006

 	
  

 	
 (212)-709-7218

 	
  

 	
 (212)
 480-5900

 	
  

 	
 Enver
 Mahmutovic (Account Executive)

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (212)
 480-5800

 	
  

 	
  

 	
 emahmutovic@assuredenvironments.com

 

	
  

 	
  

 	
  

 
	
  

 	
 Empire State Building

 	
 Page 6 of 13

 

Flooring Carpet Contractors

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 NAME

 	
  

 	
 ADDRESS

 	
  

 	
 TELEPHONE

 	
  

 	
 FAX

 	
  

 	
 CONTACT

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	
 Alliance Carpet & Tile 

 	
  

 	
 235 West 35th
 Street, Suite 505

 New York, NY 10001

 	
  

 	
 (212)
 465-9115

 	
  

 	
 (212)
 465-9148

 	
  

 	
 Mike Bailey

 
	
 Commercial Floors Beautiful

 	
  

 	
 125
 Personette Avenue

 Berona, NJ 07044

 	
  

 	
 (973)
 571-0462

 	
  

 	
 (973)
 571-0463

 	
  

 	
 Tony
 Parrillo

 
	
 S&G Flooring

 	
  

 	
 47-14 32nd
 Place

 LIC NY 11101

 	
  

 	
 (718)
 784-6063

 	
  

 	
 (718)
 784-6065

 	
  

 	
 Stephen
 Drago

 

EXHIBIT D-1

to lease

between

Empire State Building Company L.L.C.,
Landlord

and

Coty Inc., Tenant

List of Approved Contractors for Tenant’s
Initial Installation Work

EXHIBIT E

to lease

between

Empire State Building Company L.L.C.,
Landlord

and

Coty Inc., Tenant

Sample Escalation Statement

	
  

 	
  

 	
  

 
	
 350 Fifth
 Avenue

 
	
  

 	
  

 	
  

 
	
  

 	
 2008
 Estimated Operating Expenses

 
	
  

 	
  

 	
  

 
	
  

 	
 1.

 	
 Cleaning

 
	
  

 	
 2.

 	
 General
 & Administrative

 
	
  

 	
 3.

 	
 Insurance

 
	
  

 	
 4.

 	
 Management
 Fees

 
	
  

 	
 5.

 	
 Professional
 Fees

 
	
  

 	
 6.

 	
 Repairs
 & Maintenance

 
	
  

 	
 7.

 	
 Labor

 
	
  

 	
 8.

 	
 Security

 
	
  

 	
 9.

 	
 Electricity

 
	
  

 	
 10.

 	
 Steam

 
	
  

 	
 11.

 	
 Water &
 Sewer & Steam Condensate

 
	
  

 	
 12.

 	
 Capital
 Expenditures (which are permitted to be passed on to tenants)

 
	
  

 	
 13.

 	
 Payments to
 Affiliates

 
	
  

 	
  

 	
  

 
	
 TOTAL

 

EXHIBIT F

to lease

between

Empire State Building Company L.L.C.,
Landlord

and

Coty Inc., Tenant

Certificate of Occupancy

EXHIBIT G

to lease

between

Empire State Building Company L.L.C.,
Landlord

and

Coty Inc., Tenant

Option Space/ROFO Space

[Floor Plan]

[Floor Plan]

[Floor Plan]

[Floor Plan]

[Floor Plan]

EXHIBIT H

to lease

between

Empire State Building Company L.L.C.,
Landlord

and

Coty Inc., Tenant

Building Improvement Program

ESB
Capital Improvement Descriptions

Restroom Renovations

Over 200 restrooms are being (or have been) upgraded with new low-flow
fixtures and more efficient lighting and lighting controls. Low-flow fixtures
include Sloan 0.5gpm motion-detecting lavatories, Sloan 1.6gpf automatic flush
toilets, and 1.0gpf urinals. The lighting retrofit involved the installation of
2’x2’ luminaires with paracube louvers. All restrooms are being outfitted with
occupancy sensors to control both lighting and exhaust.

On-going AHU
Replacement (45 units/year)

Each tenant floor has between 4 and 10 constant volume (6,000 cfm) “Petra”
air-handling units that are typically 180,000 btuh (15 tons). These units are
all ceiling mounted and have ducted outside air and air return. These units are
being replaced with more efficient variable air volume units at a rate of 45
units/year.

Lobby Master Plan

This project includes the restoration of the landmark art deco lobby
and ceiling mural, the creation of office tenant- and visitors-only entrances
on 34th and 33rd Streets along with a new concierge desk for office tenants and
visitors. There is a master plan approval for storefront standards for interior
and exterior retail storefront windows and finishes, including new retail
signage and tenant repositioning. New chandelier design over the two lobby
bridges, and a new art glass piece behind the concierge desk are also new
elements to this restoration project. The lighting design includes dimmable
ballast for all linear fluorescents, which will operate the new lighting system
in three modes: daytime, night, and late night, and early morning security.

Corridor Renovation
Project

This project addresses all multi-tenant floors and most elevator
crossover floors, roughly 55 Floors of corridor space. This includes original
marble wall restoration work and carpet installation in the elevator lobbies. Similar
work is being done in the main corridors, but also includes new ceilings and
lighting. HVAC is to be provided to each corridor as the renovation progresses.

1

Additional Electric
Power & Switchboard Equipment

This project includes modifications to the building’s electrical
infrastructure so more power can be brought into the building from Con Ed and
distributed within the building to the existing sub-stations. The substations
will also be renovated with newer equipment.

Mid-Pressure
Steam Riser Replacement

The building has a medium pressure steam riser to service domestic hot
water generators located on various floors. This project includes replacing the
entire riser in a productive and cost effective process to reduce maintenance
expense and the associated service interruptions.

Fire
Alarm Upgrade

ESB is considering a major system overhaul to the fire command station
and its infrastructure through the building. This would provide for additional
capacity and provide compatibility with state of the art fire system
technology.

Local
Law 11 (and Building Re-caulking)

This project is largely a waterproofing/re-caulking project of every
joint on the building’s exterior – limestone and/or windows. This includes
grinding-out the existing caulking and cleaning the joints, then re-installing
new backing and caulking. While performing this work, ESB decided to include
any minor Local Law #11 (stone) work.

Domestic
Water Valve Replacement

The domestic water distribution system incorporates branch runs at each
floor. This program will include replacing all of the existing valves with new
ones.

Replacement
of Sewage Ejectors

The sewage ejectors work in the lowest points of the building and
include float operated duplex pump sets. The existing ejectors will be replaced
and new sets are scheduled to be installed.

Local
Law 26

This New York law calls for ESB to have full sprinkler coverage by
2019. ESB has completed the house tank conversion, drain riser installation,
and standpipe-combination.

2

Elevator Modernization

This project includes upgrades to the current solid-state controllers
and drives to state of the art technology.

Renovation
of 150 Electrical Closets

This project includes the renovation of the buildings electrical
closets replacing current distribution panels with circuit breaker distribution
centers.

3

EXHIBIT I

to lease

between

Empire State Building Company L.L.C., Landlord

and

Coty Inc., Tenant

Building Standard “White Box” Condition Specifications

	
  

 	
  

 
	
 1.1

 	
 Completely demise all
 “white box” multi-tenant floors per drawing.

 
	
  

 	
  

 
	
 1.2

 	
 All new demising walls and
 any walls to remain as demising walls are to be upgraded as necessary to
 conform to “ESB standard” 2-HR rated demising partition - (2) layers GWB each
 side to deck. Demising walls at public corridors to be block construction to
 match ESB standard.

 
	
  

 	
  

 
	
 1.3

 	
 Furnish and install any
 missing access doors, in particular at wet columns. 

 
	
  

 	
  

 
	
 1.4

 	
 Radiators are to receive
 new valves, traps, and controls as required.

 
	
  

 	
  

 
	
 1.5

 	
 Furnish and install
 building standard radiator covers, sized to fit each window. 

 
	
  

 	
  

 
	
 1.6

 	
 Provide troweled-on, 2-HR
 rated fire proofing at all exposed steel.

 
	
  

 	
  

 
	
 1.7

 	
 Fill all holes in
 deck/slab with concrete. Ceiling slab to be skim coated as required to
 achieve finish level 8-10.

 
	
  

 	
  

 
	
 1.8

 	
 All columns, beams,
 soffits, exterior walls/columns, and window perimeters to be laminated with
 GWB to provide new straight/true enclosures which achieve finish level 8-10.

 
	
  

 	
  

 
	
 1.9

 	
 All core walls to be skim
 coated or laminated as required to achieve finish level 8-10. 

 
	
  

 	
  

 
	
 1.10

 	
 Existing concrete floors
 to be shot blasted and flash patched as necessary to achieve finish level
 7-8.

 
	
  

 	
  

 
	
 1.11

 	
 All paint to be Benjamin
 Moore Aura, white, flat on all GWB surfaces/ semi-gloss on all trim and metal
 surfaces (except conduit).

 
	
  

 	
  

 
	
 1.12

 	
 All columns, walls, and
 soffits including surface mounted conduit to be painted two coats.

 
	
  

 	
  

 
	
 1.13

 	
 Deck/slab above and beams
 including surface mounted conduit to be painted Benjamin Moore Aura, flat,
 white.

 
	
  

 	
  

 
	
 1.14

 	
 All newly installed items
 to be primed prior to painting.

 
	
  

 	
  

 
	
 1.15

 	
 All surface mounted
 conduit to be painted to match adjacent surface.

 
	
  

 	
  

 
	
 1.16

 	
 All new radiator covers to
 be painted semi-gloss, white by convector cover vendor.

 
	
  

 	
  

 
	
 1.17

 	
 On all non-multi tenant
 floors, freight elevator door, doors to freight elevator lobby, electrical
 closet doors, and janitor closet doors to be painted Pratt & Lambert
 water based, #1481, semi-gloss.

 
	
  

 	
  

 
	
 1.18

 	
 Protect all green control
 wiring, red fire alarm wiring, receptacles, switches, thermostats, sprinkler
 heads, and radiator tops from paint splatter or overspray.

 

	
  

 	
  

 	
  

 
	
 1.19

 	
 All remaining or new
 junction boxes to have code compliant covers installed.

 
	
  

 	
  

 
	
 1.20

 	
 Reinstall/relocate any
 public corridor exit signs that were disturbed during demolition in same
 general location.

 
	
  

 	
  

 
	
 1.21

 	
 Furnish and install new
 exit signs with battery pack as required by code, quantity and locations per
 drawing:

 
	
  

 	
  

 
	
  

 	
  

 	
 Mfr: The Exit Store,
 www.theexitstore.com or

 
	
  

 	
  

 	
                      1-877-305-0898

 
	
  

 	
  

 	
 Model:          VA4-R-SA

 
	
  

 	
  

 
	
 1.22

 	
 Reinstall/relocate any
 fire alarm horn/strobes disturbed by demolition in same general location.

 
	
  

 	
  

 
	
 1.23

 	
 Update existing electrical
 panel directory.

 
	
  

 	
  

 
	
 1.24

 	
 Paint home run box orange
 and label with closet, panel, and circuit numbers.

 

11

EXHIBIT J

to lease

between

Empire State Building Company L.L.C.,
Landlord

and

Coty Inc., Tenant

Building Standard Common Corridor
Specifications

	
  

 	
  

 	
  

 
	
 Elevator Banks: 

 
	
  

 	
 •

 	
 Gypsum,
 ribbed border ceiling with American Glass pendant chandelier and downlights.

 
	
  

 	
 •

 	
 Branch
 sprinkler line for the floor, including heads as per code in completed
 corridor.

 
	
  

 	
 •

 	
 HVAC
 supplied to corridor, within code requirements.

 
	
  

 	
 •

 	
 Benjamin
 Moore white, as per ESB, for ceiling and elevator doors.

 
	
  

 	
 •

 	
 Walls are to
 be refinished with the full height marble/limestone (typically covered by a
 previous wallpaper installation), refinished and re-grouted with approved
 grout coloring, as per ESB.

 
	
  

 	
 •

 	
 Milliken
 carpet tile is to be installed in elevator bank lobbies, with the main field
 pattern and border pattern.

 
	
  

 	
  

 	
  

 
	
 Corridors: 

 
	
  

 	
 •

 	
 Ceiling is a
 2x2 grid system, as per ESB standards.

 
	
  

 	
 •

 	
 Lighting is
 2x2 Lightolier lay-in fixture, as per ESB standards.

 
	
  

 	
 •

 	
 HVAC
 registers/returns are 2x2 lay-in, as per ESB standards.

 
	
  

 	
 •

 	
 Walls
 include marble/limestone wainscoting to be refinished and re-grouted as in
 the elevator lobby; above wainscoting wallpaper to be installed: “JM Lynne
 Design Tex Byzantine stripe - BYS-105 Driftwood.”

 
	
  

 	
 •

 	
 Carpet is
 same Milliken carpet tile, but the field is a pattern — not what is installed
 in elevator banks — border is to be determined pursuant to final design.

 
	
  

 	
  

 	
  

 
	
 Miscellaneous:

 
	
  

 	
 •

 	
 Fire alarm
 devices are to be installed per code, replacing speaker/strobes to white.

 
	
  

 	
 •

 	
 Mail chutes
 are to be restored to their original finish.

 
	
  

 	
 •

 	
 Core door
 hardware is to be replaced to the new ESB standard hardware.

 

EXHIBIT K

to lease

between

Empire State Building Company L.L.C.,
Landlord

and

Coty Inc., Tenant

Entrance Door and Signage Specifications

	
  

 
	
 EMPIRE STATE BUILDING

 
	
 350 FIFTH AVENUE, SUITE 3210

 
	
 NEW YORK, NEW YORK 10118

 
	
 TEL. 212-736-3100 / FAX. 212-967-6167

 
	
  

 
	

 

 
	
  

 
	
 DENNIS A. PATCH, CONSTRUCTION MANAGER

 
	
  

 
	
 MEMORANDUM

 

	
  

 	
  

 
	
 DATE:

 	
 September
 12, 2007

 
	
  

 	
  

 
	
 TO:

 	
 Tenant

 
	
  

 	
  

 
	
 FROM:

 	
 Dennis A.
 Patch

 
	
  

 	
  

 
	
 RE:

 	
 New Building Standard Tenant Entrance Door Signs

 
	
  

 	
  

 
	

 

 

The Empire State Building has standardized all tenant entrance door
signs. Additionally we have standards for the location of the new tenant
entrance door sign. Please find-attached drawings indicating the size and style
of sign and also the location where they will be installed depending on the
type of entrance door(s).

Please contact Joseph Fleischer from New Style Signs at 212-242-7848
for a price quote. The base cost for the stainless steel 12”x 12” tenant
entrance door sign is $196.62 which will include standard border engraving,
suite number and 1 line for company name. Additional lines will cost $10.00.
The cost for the sign does not include sales tax, shipping costs or
installation. The tenant entrance door signs can only be purchased from New
Style Signs.

You may request an installation price from New Style Signs or from the
Empire State Building, Tenant Services Department (212) 400-3350.

Sincerely,

Dennis A.
Patch

CONSTRUCTION
MANAGER

EMPIRE
STATE BUILDING STANDARDS FOR ENTRANCE DOORS

DATE: 10/15/07

Tenant shall furnish and install new 3’ x 7’ x 1 3⁄4” Pre-finish solid
core wood walnut veneer fire-rated 90 minutes ‘B’ labeled door. Provide
matching in-active leaf where noted, as required. New doorframe to be welded
hollow metal fire rated labeled doorframe, double rabbetted. NEW PRE-FINISH ENTRY WOOD DOOR MUST BE FABRICATED BY:
“DOOR STOP”, CONTACT: RONNIE NAPOLI, TEL: 718-599-5112. Entry
wood doors to have hardware cut-outs from factory/shop for mail slot, hardware,
etc. w/8”H. internal solid top rail for surface door closer installation.
Finish wood doors to match control sample. Finish wood door edge to have same
wood veneer finish. Under cut of door to be no more than 3/8” above finished
saddle. Saddle to be 1⁄2” thick. All marble and wall covering work by tenant.

	
  

 	
  

 	
  

 
	
 The following entry door(s) hardware shall be furnished and
 installed:

 
	
  

 	
 A.

 	
 “LCN” 4040 series heavy duty door closer, pull side non-hold open
 with metal cover w/stainless steel finish, US26D. Must include back plate and
 thru- bolts.

 
	
  

 	
 B.

 	
 “STANLEY” FBB168 Series 4-1/2” x 4-1/2” full bearing Mortis 3
 Knuckles hinges. (1)Hinge must be an electric hinge.

 
	
  

 	
 C.

 	
 “CORBIN RUSSWIN” ML2000 Series Mortise Lockset, Item No. ML2051- MR.
 Lever handle: Citation, Escutcheon Plate: CSM, Cylinder 6-Pin Jumbo Master
 Cylinder w/ Cylinder Collar. Keyway: Corbin Russwin, 57B-2 from 85th
 to 41st floors. Corbin Russwin, 57A-1 from 40th to
 lobby floors.

 
	
  

 	
 D.

 	
 “IVES” Mail Slot #620 Spring Loaded front plate open back plate with
 #601 sleeve.

 
	
  

 	
 E.

 	
 “IVES” #FS17 floor mounted dome doorstop.

 
	
  

 	
 F.

 	
 “IVES” #RS64 Grey rubber door silencers.

 
	
  

 	
 G.

 	
 “PEMKO” #171B Stainless Steel Door Saddle.

 
	
  

 	
 H.

 	
 “IVES” #FB457UL US26D Top/Bottom Manual Flush Bolts. (For in-active
 Leaf.)

 
	
  

 	
 I.

 	
 1/8”thk. Full HT. Wood laminated metal door astragal. (For in-active
 leaf.)

 
	
  

 	
 J.

 	
 “CORBIN” Mortise Lockset strike plate.

 
	
  

 	
 K.

 	
 “Door Button & Chime-’Nutone’ wired chime kit w/one lighted
 button. Model CD 115WHBULK. Color: White. Mount chime kit 3” below finished
 ceiling. Install recessed lighted button at handle side of door. Provide
 round stainless steel lighted door bell button 48” A.F.F.

 
	
  

 	
 L.

 	
 12” x 12” Stainless Steel building door sign. Contact “New Style
 Signs” Joseph Fleischer at (212)-242-7848.

 

Note: All door hardware finishes including
door closer, mail slot & saddle are to be stainless steel, (US26D). Submit
door & hardware schedule & specifications (cut sheets) for review &
approval prior to ordering.

[Floor Plan]

[Floor Plan]

[Floor Plan]

SCHEDULE
A

RULES AND REGULATIONS

	
  

 	
  

 
	
 1.

 	
 No animals, birds, bicycles or vehicles shall be brought into or kept
 in the demised premises. Tenant shall not cause or permit in the demised
 premises any disturbing noises which may unreasonably interfere with
 occupants of the building or any neighboring building, any cooking or
 objectionable odors, or any nuisance of any kind, or any inflammable or
 explosive fluid, chemical or substance. Canvassing, soliciting and peddling
 in the building are prohibited, and Tenant shall cooperate so as to prevent
 the same.

 
	
  

 	
  

 
	
 2.

 	
 The toilet rooms and other water apparatus shall not be used for any
 purposes other than those, for which they were constructed, and no sweepings,
 rags, ink, chemicals or other unsuitable substances shall be thrown therein.
 Tenant shall not throw anything out of doors, windows or skylights or into
 hallways, stairways or elevators, nor place food or objects on outside
 windowsills. Tenant shall not obstruct or cover the halls, stairways and
 elevators, or use them for any purpose other than ingress and egress to or
 from the demised premises, nor shall skylights, windows, doors and transoms
 that reflect or admit light into the building be covered or obstructed in any
 way.

 
	
  

 	
  

 
	
 3.

 	
 Tenant shall not place a load upon any floor of the demised premises
 in excess of the load per square foot, which such floor was designed to carry
 and which is allowed by law. Landlord reserves the right to prescribe the
 weight and position of all safes in the demised premises. Smoking or carrying
 lighted cigars, pipes or cigarettes in the elevators of the building is
 prohibited. If the demised premises are on the ground floor of the building,
 Tenant, at its expense, shall keep the sidewalks and curb in front of the
 demised premises clean and free from ice, snow, dirt and rubbish.

 
	
  

 	
  

 
	
 4.

 	
 Tenant shall not move any heavy or bulky materials into or out of the
 building without Landlord’s prior written consent, and then only during such
 hours and in such manner as Landlord shall reasonably approve. If any material
 or equipment requires special handling, Tenant shall employ only persons
 holding a Master Rigger’s License to do such work, and all such work shall
 comply with all legal requirements. Landlord reserves the right to inspect
 all freight to be brought into the building, and to exclude any freight which
 violates any rule, regulation or other provision of this lease.

 
	
  

 	
  

 
	
 5.

 	
 No sign, advertisement, notice or thing shall be inscribed, painted
 or affixed on any part of the building outside of the demised premises,
 without the prior written consent of Landlord. Landlord may remove anything
 installed in violation of this provision, and Tenant shall pay the cost of
 such removal.

 
	
  

 	
  

 
	
 6.

 	
 Intentionally Deleted.

 

	
  

 	
  

 
	
 7.

 	
 No existing locks shall be changed, nor shall any additional locks or
 bolts of any kind be placed upon any door or window by Tenant, without the
 prior written consent of Landlord. At the termination of this lease, Tenant
 shall deliver to Landlord all keys for any portion of the premises or building.
 Before leaving the premises at any time, Tenant shall close all windows and
 close and lock all doors.

 
	
  

 	
  

 
	
 8.

 	
 No Tenant shall purchase or obtain for use in the premises any spring
 water, ice, towels, food, boot blacking, barbering, or other such services furnished
 by any company or person not approved by Landlord, which approval shall not
 be unreasonably withheld, conditioned or delayed. Any necessary exterminating
 work in the premises shall be done at Tenant’s expense, at such times, in
 such manner as Landlord shall reasonably require. Landlord reserves the right
 to exclude from the building, from 6:00 p.m. to 8:00 a.m., and at all hours
 on Sunday and legal holidays, all persons who do not present a pass to the
 building signed by Landlord. Landlord will furnish passes to all persons
 reasonably designated (in writing) by Tenant, including, without limitation,
 to up to an aggregate of fifty (50) regular customers of Tenant and/or
 officers who have offices in other locations. Tenant shall be responsible for
 the acts of all persons to whom passes are issued at Tenant’s request.

 
	
  

 	
  

 
	
 9.

 	
 Except in connection with Tenant’s Initial Installation Work,
 whenever Tenant shall submit to Landlord any plan, agreement or other
 document for Landlord’s consent or approval, Tenant agrees to pay Landlord,
 as additional rent, within thirty (30) days after demand, the reasonable
 out-of-pocket fees of any architect, engineer or attorney employed by
 Landlord review said plan, agreement or document.

 
	
  

 	
  

 
	
 10.

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

 

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

2

EMPIRE STATE BUILDING COMPANY L.L.C.

350 Fifth Avenue, Third Floor

New York, New York 10118

July 14, 2008

Coty Inc.

Two Park Avenue

New York, New York 10016

	
  

 	
  

 	
  

 
	
  

 	
 Re:

 	
 Empire State
 Building, New York, New York

 

Ladies and
Gentlemen:

          Reference
is hereby made to that certain proposed lease between Empire State Building
Company L.L.C., as landlord (“Landlord”) and Coty Inc., as tenant (“Tenant”),
covering certain space (the “demised premises”) consisting of the entire
rentable area of the 14th floor, and a portion of the 15th
floor, of the building (“Building”) known as the Empire State Building, 350
Fifth Avenue, New York, New York (which lease is hereinafter called the
“Lease”).

          Capital
One, N.A. (“Capital One”), the holder of the mortgage currently encumbering the
Building (the “Capital One Mortgage”), is not willing to assume responsibility
for the payment of any unpaid portion of Landlord’s Contribution (as such term
is defined in Article 23C(iii) of the Lease) if Capital One succeeds to the
interest of Landlord under the Lease, notwithstanding its agreement to enter
into a non-disturbance agreement with Tenant. Tenant is not willing to execute
and deliver the Lease unless and until Landlord provides Tenant with adequate
security for the payment of any portion of Landlord’s Contribution remaining
unpaid if, as and when Capital One succeeds to the interest of Landlord under
the Lease. As an inducement to Tenant to execute and deliver the Lease,
Landlord is willing to provide such adequate security by depositing the amount
of Landlord’s Contribution (i.e., $5,998,300.00) into escrow, in accordance with
the terms and conditions hereinafter set forth.

          Therefore,
it is hereby agreed as follows:

          1.
Capitalized terms not defined herein shall have the meanings ascribed to such
terms in the Lease.

          2.
Simultaneously with the execution and delivery of this letter agreement by
Landlord and Tenant, Landlord deposited the sum of $5,998,300.00 (the “Escrow
Deposit”) with Landlord’s attorneys, David J. Bleckner, P.C. (“Escrowee”),
which shall 

hold such sum in escrow, in an interest bearing attorney escrow account
at Citibank, N.A. (or another bank selected by Escrowee, notice of which shall
be given to Landlord and Tenant), in accordance with the terms and conditions
of this letter agreement.

          3. The
Escrow Deposit shall be disbursed by Escrowee as follows:

                    A.
If, following Capital One’s succeeding to Landlord’s interest under the Lease,
Capital One shall refuse to pay any unpaid portion of Landlord’s Contribution
(or interest or legal fees due in connection therewith) when due, then, within
two (2) business days after Escrowee’s receipt of Tenant’s written demand
therefor (accompanied by the documentation set forth in clauses (a), (b) and
(c) of Article 23C(iii) of the Lease), Escrowee shall advise Landlord of
Tenant’s demand by sending a copy thereof and the accompanying supporting
documentation. If Landlord shall fail to object in writing to Escrowee’s
disbursement of the amount so demanded within five (5) business days after the
date Escrowee’s notice is given, Escrowee shall pay Tenant the amount so
demanded on account of Landlord’s Contribution. If Landlord shall timely object
to such disbursement (which objection, if made, shall be based solely on the
claim that Tenant has failed to satisfy the conditions to the disbursement of
such funds pursuant to the provisions of Article 23C(iii) of the Lease, and
shall be accompanied by an explanation of the reason(s) therefor and details
sufficient to enable Tenant to cure such objection), then Escrowee shall advise
Tenant of Landlord’s objection by sending a copy thereof to Tenant, and
Escrowee shall continue to hold such funds until resolution of the dispute (or,
at its election, shall deposit such funds into court, as hereinafter provided
in Article 4A). Any such dispute shall be resolved by arbitration in accordance
with the provisions of Article 41 of the Lease, and if Tenant prevails in such
arbitration proceeding, then Escrowee shall be required to pay Tenant (from the
Escrow Deposit) the full amount awarded to Tenant in such proceeding,
including, without limitation, any attorneys’ fees and/or interest awarded to
Tenant in such proceeding in accordance with the provisions of said Article
23C(iii).

                    B.
In the event that Landlord shall pay Tenant any portion of Landlord’s
Contribution in accordance with the terms of the Lease, then Landlord shall
notify Escrowee thereof. Within two (2) business days after Escrowee’s receipt
of Landlord’s notice of such payment, Escrowee shall notify Tenant that
Escrowee intends to refund to Landlord, from the Escrow Deposit, an amount
equal to the portion of Landlord’s Contribution so paid by Landlord. If Tenant
shall fail to object in writing to such refund by Escrowee, within five (5)
business days after the date Escrowee’s notice is given, then Escrowee shall
refund such portion of the Escrow Deposit to Landlord (and the amount of the
Escrow Deposit which is required to maintained hereunder shall be deemed
reduced by such amount). If Tenant shall timely object to such refund by
Escrowee (which objection, if made, shall be based solely on the claim that
Landlord has failed to actually pay such portion of Landlord’s Contribution (or
interest or legal fees due in connection therewith), and shall be accompanied by
a reasonably detailed explanation of the reason(s) therefor), then Escrowee
shall advise Landlord of Tenant’s objection by sending a copy thereof to
Landlord, and Escrowee shall continue to hold such funds until resolution of
the dispute (or, at its election, shall deposit such funds into 

2

court, as hereinafter provided in Article 4A). Any such dispute shall
be resolved by arbitration in accordance with the provisions of Article 41 of
the Lease.

                    C.
In the event that Tenant shall fail by the second anniversary of the
Commencement Date to perform sufficient Tenant’s Initial Installation Work for
Landlord’s Contribution to be fully applied, then Landlord shall notify
Escrowee thereof. Within two (2) business days after Escrowee’s receipt of such
notice from Landlord, Escrowee shall notify Tenant that Escrowee intends to
refund to Landlord, from the Escrow Deposit, an amount equal to the then
remaining balance of the Escrow Deposit. If Tenant shall fail to object in
writing to such refund by Escrowee, within five (5) business days after the
date Escrowee’s notice is given, then Escrowee shall refund such remaining
balance of the Escrow Deposit to Landlord. If Tenant shall timely object to
such refund by Escrowee (which objection, if made, shall be based solely on the
claim that Tenant has prior to the second anniversary of the Commencement Date
performed sufficient Tenant’s Initial Installation Work for Landlord’s
Contribution to be fully applied, or that Landlord has not paid interest or legal
fees which are then due to Tenant under the provisions of the Lease governing
Landlord’s Contribution, and which objection shall be accompanied by a
reasonably detailed explanation of the reason(s) therefor), then Escrowee shall
advise Landlord of Tenant’s objection by sending a copy thereof to Landlord,
and Escrowee shall continue to hold such funds until resolution of the dispute
(or, at its election, shall deposit such funds into court, as hereinafter
provided in Article 4A). Any such dispute shall be resolved by arbitration in
accordance with the provisions of Article 41 of the Lease.

                    D.
All interest earned on the Escrow Deposit shall be added onto and become part
of the Escrow Deposit and, to the extent it has not been applied in accordance
with the terms hereof, shall be released to Landlord when Landlord’s
obligations under the Lease with respect to Landlord’s Contribution have been
fully satisfied.

          4. A. In
the event of any dispute regarding this letter agreement or the Escrow Deposit,
or uncertainty as to the duties of Escrowee hereunder, then except as otherwise
expressly provided for herein, Escrowee shall pay the Escrow Deposit or
disputed portion thereof, as the case may be, into court pursuant to the
relevant statute.

                    B.
The parties agree jointly to defend (by attorneys selected by Escrowee),
indemnify and hold harmless Escrowee against and from any claim, judgment,
loss, liability, cost or expense resulting from any dispute or litigation arising
out of or concerning Escrowee’s duties or services hereunder. This indemnity
shall include, without limitation, reasonable attorneys’ fees and disbursements
either paid to retain attorneys or representing the fair value of legal
services rendered by Escrowee itself.

                    C.
Escrowee shall not be liable for any error in judgment or for any act done or
step taken or omitted in good faith, or for any mistake of fact or law, except
for Escrowee’s own gross negligence or willful misconduct. Notwithstanding
anything 

3

contained in this letter agreement to the contrary, Escrowee shall have
no obligation or responsibility to determine the validity of any objection by
either Landlord or Tenant to the disbursement of all or any part of the Escrow
Deposit; it being understood and agreed that such determination shall be made
solely by the arbitrators in any arbitration proceeding relating to such
objection.

                    D.
The parties acknowledge that Escrowee is merely a stakeholder. Upon payment of
the Escrow Deposit pursuant to this letter agreement, Escrowee shall be fully
released from any and all liability and obligations with respect to the Escrow
Deposit.

                    E.
It is acknowledged and agreed that Escrowee is the attorney for Landlord and
that Escrowee shall be entitled to represent Landlord in any lawsuit, except if
same relates to the Escrow Deposit, unless the Escrow Deposit has been
deposited into court by Escrowee, as hereinabove provided (in which case
Escrowee shall be entitled to represent Landlord in such lawsuit).

                    I.
Any notice or communication to Escrowee shall be in writing and either (a)
delivered by hand or by overnight courier, with receipt acknowledged in either
case, to Escrowee at 350 Fifth Avenue, Suite 2816, New York, New York 10118, or
(b) given by telecopier to (212) 279-4495, in either case, Attn: David J.
Bleckner, Esq. Each notice to Escrowee shall be deemed given when received (or
refused). Any notice or communication to Landlord or Tenant shall be governed
by the notice provisions of the Lease.

          5. The
provisions of this letter agreement shall be governed by and construed in
accordance with the internal laws of the State of New York applicable to
agreements made and to be performed wholly in the State of New York, without
regard to principles of conflicts of law.

          6. This
letter agreement shall bind and inure to the benefit of the parties hereto,
their heirs, personal representatives, successors and permitted assigns.

          7. This
letter agreement may not be modified, amended, altered or discharged except by
an instrument in writing signed by the parties hereto.

          8. This
letter agreement may be executed in counterparts, each of which shall be an original
and all of which counterparts taken together shall constitute one and the same
agreement.

          9. This
letter agreement supersedes any and all understandings and agreements between
the parties with respect to the subject matter hereof.

          10. In the
event that any provision of this letter agreement shall be held to be invalid
or unenforceable in any respect, the validity, legality or enforceability of
the remaining provisions of this letter agreement shall be unaffected thereby.

4

          11.
This letter agreement may be executed in two or more counterparts and all
counterparts so executed shall for all purposes constitute one agreement
binding on all of the parties hereto, notwithstanding that all parties shall
not have executed the same counterparts. Facsimile and photocopy signatures on
this letter agreement shall have the same force and effect as originals.

          Please
sign and return a copy of this letter to the undersigned so as to confirm your
agreement with the foregoing.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Very truly
 yours,

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 EMPIRE STATE
 BUILDING COMPANY

 
	
  

 	
 L.L.C.,
 Landlord

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
      /s/
 Peter L. Malkin

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Peter
 L. Malkin

 	
  

 
	
  

 	
  

 	
 Title:
 Member

 	
  

 

	
  

 	
  

 	
  

 
	
 AGREED

 
	
  

 
	
 COTY INC.,
 Tenant

 
	
  

 	
  

 	
  

 
	
 By:

 	
      /s/
 Michael Fishoff

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 Name:
 Michael Fishoff

 	
  

 
	
  

 	
 Title: Chief
 Financial Officer

 	
  

 
	
  

 	
  

 	
  

 
	
 DAVID J.
 BLECKNER, P.C., Escrowee

 
	
  

 	
  

 	
  

 
	
 By:

 	
      /s/
 David J. Bleckner, Esq.

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 Name: David
 J. Bleckner, Esq.

 	
  

 
	
  

 	
 Title:
 President

 	
  

 

5

[Deposit Image]

[Deposit Image]

NON-DISTURBANCE AND ATTORNMENT AGREEMENT

          NON-DISTURBANCE
AND ATTORNMENT AGREEMENT (this “Agreement”) dated as of July 14,
2008, between EMPIRE STATE LAND ASSOCIATES L.L.C. (“Owner”), a limited
liability company organized and existing under the laws of the State of New
York, having its principal place of business c/o Wien & Malkin LLP, 60 East
42nd Street, New York, New York 10165; and COTY INC. (“Subtenant”), a
corporation organized and existing under the laws of the State of Delaware,
having an address at Two Park Avenue, New York, New York 10016.

W I T N E S S E T H:

          Owner
owns the fee title to the land described on Schedule A annexed hereto and made
part hereof (the “Land”) and the building (the “Building”)
known as The Empire State Building, 350 Fifth Avenue, New York, New York. Owner
leases the Land and Building to Empire State Building Associates L.L.C. (the “Master
Lessee”) pursuant to the Ground Lease described on Exhibit 1
annexed hereto and made part hereof (as amended, supplemented or otherwise
modified from time to time, the “Master Lease”). In turn, Master Lessee
sublets the Land and Building to Empire State Building Company L.L.C. (“Sublandlord”)
pursuant to that certain Agreement of Sublease more particularly described in
Exhibit 2 annexed hereto and made part hereof (as amended, supplemented or
otherwise modified from time to time, the “Operating Sublease”).

          Sublandlord
and Subtenant entered into a Lease dated as of July 14, 2008 (the “Sublease”),
pursuant to which Subtenant subleases a portion of the Building more
particularly described in the Sublease (the “Subleased Premises”).

          Subtenant
desires to be assured of the continued use and occupancy of the Subleased
Premises under the terms of the Sublease if the terms of the Master Lease and
the Operating Sublease are terminated or expire prior to the last day of the
term of the Sublease.

          Owner
agrees to such continued use and occupancy by Subtenant, provided that
Subtenant agrees to recognize and attorn to Owner.

          NOW,
THEREFORE, in consideration of the premises and covenants herein contained, it
is agreed:

          1.
If the terms of the Master Lease and Operating Sublease are terminated or
expire prior to the expiration of the term of the Sublease, then (a) the
Sublease shall not be terminated, (b) Owner shall not name or join Subtenant in
summary or other proceedings to obtain possession of the Subleased Premises or
to terminate the Sublease and (c) Owner shall not disturb the use and occupancy
of Subtenant under the Sublease so long as, with respect to each of clauses
(a), (b) and (c), Subtenant is not in default, beyond any applicable notice
and/or cure period, of any term, covenant or condition of the Sublease to be
performed or satisfied by Subtenant.

          2.
If the terms of the Master Lease and Operating Sublease are terminated or
expire prior to the expiration of the term of the Sublease, Subtenant shall
attorn to Owner as the sublandlord under the Sublease. All rights and
obligations under the Sublease shall continue as though such termination or
expiration of the terms of each of the Master Lease and Operating Sublease had
not occurred. The provisions of the foregoing two sentences are intended to be
effected automatically and be self-operative without the need for further
documentation to effect. Subtenant waives the provisions of any statute or rule
of law now or hereafter in effect that may give or purport to give Subtenant
any right or election to terminate or otherwise adversely affect the Sublease
and the obligations of Subtenant thereunder by reason of any such termination
or expiration of the term of the Master Lease or of the Operating Sublease.

          3.
Notwithstanding anything in this Agreement set forth to the contrary, Owner
shall not in any event (a) be liable for any previous act, omission, default,
misrepresentation or breach of any warranty of Sublandlord, but the foregoing
shall not be construed or interpreted as exculpating Owner from liability for
any damages, fees, costs 

or
expenses arising out of Owner’s failure to perform any obligation of any prior
landlord (including Sublandlord), to the extent such failure continues
following the date that Owner succeeded to the interest of Sublandlord under
the Sublease (the “Succession Date”), (b) be subject to any offsets, credits,
claims, counterclaims or defenses that Subtenant may be entitled to assert
against Sublandlord; provided, however, that Owner shall be subject to offsets,
credits, claims, counterclaims or defenses in favor of Subtenant to the extent
that they relate to any unfunded installment of Landlord’s Contribution (as
defined in the Sublease) payable to Subtenant pursuant to the terms of the
Sublease, (c) be bound by any amendment to or modification of the Sublease made
without the prior written consent of Owner, except for any such amendment or
modification made pursuant to provisions of the Sublease that prescribe such
amendment or modification and specify the subject matter thereof, (d) be bound
by any payment by Subtenant of any rent in advance beyond one month’s rent paid
in accordance with the terms of the Sublease or (e) be responsible for or with
respect to the retention, application and/or return to Subtenant of any
security deposit paid to Sublandlord, whether or not still held by Sublandlord,
unless and until Owner has actually received, or been credited with, the full
amount of such security deposit. It is agreed that after the Succession Date,
nothing herein shall be deemed to relieve Owner from performing, in accordance
with the terms of the Sublease and this Agreement, the obligations of
Sublandlord under the Sublease if the same have not been performed as of the
Succession Date and any other obligation that may accrue thereafter. If any
obligation of Sublandlord shall not have been performed prior to the Succession
Date and Owner is required to perform the same after the Succession Date
pursuant to the terms of the Sublease and/or this Agreement, and if Owner shall
default in its obligation to perform the same, then Subtenant’s remedies for
such non-performance shall be as prescribed in the Sublease or as may exist at
law. Notwithstanding anything herein to the contrary, Master Lessee shall not
be liable for any monetary damages accruing prior to the Succession Date as a
result of Sublandlord’s failure to perform any obligation required under the
Sublease to have been performed prior to the Succession Date, except as
otherwise provided in clause (b) of this Paragraph 3.

          4.
If any default (which includes any act or failure to act) shall occur that
shall permit Subtenant to terminate the term of the Sublease or cancel such
Sublease (whether immediately or after the lapse of time) (a “Termination
Right”), Subtenant shall promptly give Owner notice of such
event and a reasonable opportunity to remedy such event (but not less than (a)
ten (10) business days after such notice in the case of a monetary default and
(b) thirty (30) days in all other circumstances). If Owner shall have cured any
monetary default within the aforesaid time period or have commenced to effect
such a cure within the relevant time period in all other cases (and continue to
act diligently to prosecute such cure to completion), then Subtenant shall not
effect such a termination and the Sublease shall continue in effect pursuant to
its terms. Owner shall be entitled to additional time to cure such default if
(x) Owner shall require more than thirty (30) days following such notice to
remedy the default (other than a monetary default) giving rise to the
Termination Right, (y) Owner shall have given notice of its intention to remedy
the event within ten (10) days following its receipt of Subtenant’s notice and
(z) Owner promptly takes and diligently pursues commercially reasonable steps
to effect such remedy.

          5.
In all events, the liability of Owner to Subtenant whether under this Agreement
or the Sublease and Subtenant’s right to be made whole for any damage, injury
or loss it may sustain shall be limited and restricted to Owner’s estate in the
Subleased Premises and the proceeds of any sale thereof and shall in no event
exceed such interest or proceeds. In no event shall Subtenant name or seek to
name any member, agent, employee or affiliate of Owner in any action, proceeding,
arbitration or other form of litigation, whether to collect any deficiency or
otherwise, in connection with any claim arising out of or in connection with
the Sublease or this Agreement (whether before or after the expiration or
earlier termination of the term of the Lease).

          6.
Any notice required or desired to be given in connection with this Agreement
shall be in writing and shall be given to the parties hereto at the addresses
set forth below by (a) personal delivery to the person to whom notices are
designated to be given hereunder or (b) by facsimile transmittal, provided that
such transmittal is electronically confirmed to have been successfully sent and
an original, executed copy of such notice is delivered personally within one
(1) business day to the designated recipient of such notice. Notices shall be
deemed effective upon receipt by the designated person but the failure of any
such person to accept any notice or the failure to deliver any such notice
because any designated recipient is not available to receive the same shall not
be deemed to invalidate the effectiveness of such notice. Notices shall be
addressed as follows:

	
  

 	
  

 
	
  

 	
 To Owner:

 
	
  

 	
 Empire State Land
 Associates L.L.C.

 

2

	
  

 	
  

 
	
  

 	
 c/o Wien & Malkin LLP

 
	
  

 	
 60 East 42nd Street

 
	
  

 	
 New York, New York 10165

 
	
  

 	
 Attention: Senior Asset
 Manager 

 
	
  

 	
 Facsimile Number: (212)
 850-2796

 
	
  

 	
  

 
	
  

 	
 To Subtenant:

 
	
  

 	
 Coty Inc.

 
	
  

 	
 Two Park Avenue

 
	
  

 	
 New York, New York 10016 

 
	
  

 	
 Attention: Chief Financial
 Officer 

 
	
  

 	
 Facsimile No.: (212)
 479-4508

 
	
  

 	
  

 
	
  

 	
 With a copy to:

 
	
  

 	
  

 
	
  

 	
 Coty Inc.

 
	
  

 	
 Two Park Avenue

 
	
  

 	
 New York, New York 10016 

 
	
  

 	
 Attention: General Counsel
 

 
	
  

 	
 Facsimile No.: (212)
 479-4328

 

Each
party hereto may designate a different person and address for the receipt of
notices by notice given in the aforesaid manner.

          7.
A “business day” is deemed to be any day, except Saturday, Sunday and any day
that a majority of the commercial banks chartered by the State of New York
having branches in the Borough of Manhattan are closed for the purpose of
accepting deposits (other than by automatic teller machine or similar devices
or by electronic transfer of funds).

          8.
The provisions of this Agreement are binding upon and shall inure to the
benefit of the successors and assigns of the parties hereto.

          9.
If there is any conflict or ambiguity between any term of this Agreement and
any term of the Sublease, the term of this Agreement shall control.

          10.
This Agreement shall be governed by and construed in accordance with the
substantive laws of the State of New York without giving effect to any choice
or conflicts of law doctrine or policy. Any legal proceeding respecting any
cause of action or claim arising hereunder shall be brought in the courts of
the State of New York sitting in the County of New York.

          11.
Owner and Subtenant waive trial by jury in any action or proceeding or
counterclaim arising out of this Agreement brought or made by either of them.

          12.
This Agreement may not be amended or terminated orally.

          13.
This Agreement constitutes the sole agreement between the parties with respect
to the subject matter hereof and supersedes any prior agreement (written or
oral) between them with respect to such subject matter.

          14.
This Agreement may be executed in two or more counterparts and all counterparts
so executed shall for all purposes constitute one agreement binding on all of
the parties hereto, notwithstanding that all parties shall not have executed
the same counterparts. Facsimile and photocopy signatures on this Agreement
shall have the same force and effect as originals.

[SIGNATURE PAGE FOLLOWS]

3

          IN
WITNESS WHEREOF, the parties hereto have executed these presents the day and
year first above written.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 EMPIRE STATE LAND
 ASSOCIATES L.L.C.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:  Empire
 State Building Associates L.L.C.,

 
	
  

 	
 Member

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
      /s/
 Peter L. Malkin

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name: Peter L. Malkin

 
	
  

 	
 Title: Member

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 COTY INC.

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
      /s/
 Michael Fishoff

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name: Michael Fishoff

 
	
  

 	
 Title: Chief Financial
 Officer

 

	
  

 	
  

 	
  

 
	
 STATE OF NEW YORK)

 	
  

 	
  

 
	
  

 	
 :

 	
 ss.

 
	
 COUNTY OF NEW YORK)

 	
  

 	
  

 

          On
the 14th day of July, 2008, before me, the undersigned, personally
appeared Peter L. Malkin personally known to me or proved to me on the basis of
satisfactory evidence to be the individual whose name is subscribed to the
within instrument and acknowledged to me that he executed the same in his
capacity, and that by his signature on the instrument, the individual, or the
person on behalf of which the individual acted, executed the instrument.

	
  

 	
  

 	
  

 
	
  

 	
      /s/
 Judy H. Love

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 Notary Public

 	
  

 
	
  

 	
 JUDY
 H. LOVE

 	
  

 
	
  

 	
 Notary
 Public, State of New York

 	
  

 
	
  

 	
 No.
 01LO4877662

 	
  

 
	
  

 	
 Qualified
 in Queens County

 	
  

 
	
  

 	
 Commission
 Expires 11/17/2010

 	
  

 

	
  

 	
  

 	
  

 
	
 STATE OF NEW YORK)

 	
  

 	
  

 
	
  

 	
 :

 	
 ss.

 
	
 COUNTY OF NEW YORK)

 	
  

 	
  

 

          On
the 14th day of July, 2008, before me, the undersigned, personally
appeared Michael Fishoff personally known to me or proved to me on the basis of
satisfactory evidence to be the individual(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 capacity(ies), and that by his/her/their signature(s) on
the instrument, the individual(s), or the person(s) on behalf of which the
individual(s) acted, executed the instrument.

	
  

 	
  

 	
  

 
	
  

 	
      /s/
 Lori Rosario-Griffin

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 Notary Public

 	
  

 
	
  

 	
 LORI
 ROSARIO-GRIFFIN

 	
  

 
	
  

 	
 NOTARY
 PUBLIC, State of New York

 	
  

 
	
  

 	
 No.
 02RO6106850

 	
  

 
	
  

 	
 Qualified
 in New York County

 	
  

 
	
  

 	
 Commission
 Expires March 15, 2012

 	
  

 

4

SCHEDULE
A

The Land

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

BEGINNING at the corner formed by the intersection of the southerly
side of 34th Street with the westerly side of 5th Avenue;

THENCE southerly along the westerly side of 5th Avenue 197
feet 6 inches to the northerly side of 33rd Street; 

THENCE westerly along the northerly side of 33rd Street 500
feet;

THENCE northerly and parallel with the westerly side of 5th
Avenue 98 feet 9 inches to the middle line of the block; 

THENCE easterly and parallel with the northerly side of 33rd
Street, 75 feet;

THENCE again northerly and parallel with the westerly side of 5th
Avenue and part of the distance through a party wall 98 feet 9 inches to the
southerly side of 34th Street;

THENCE easterly along the southerly side of 34th Street 425
feet to the corner aforesaid, the point or place of BEGINNING.

350 Fifth
Avenue, New York, NY

Block: 835

Lot: 41

EXHIBIT 1

Master Lease

          Indenture
of Ground Lease dated 12-21-51 by and between The Prudential Insurance Company
of America, as landlord and Alglan Realty Corporation, Rostev Realty
Corporation and Bentob Realty Corporation as tenants, and recorded 12-21-51 in Liber
4759 Page 534, as assigned and/or modified pursuant to:

          Modification
of Indenture of Lease between The Prudential Insurance Company of America and
Empire State Building Associates, dated 12-27-61, and recorded 12-27-61 in
Liber 5173 Page 49;

          Second
Modification of Indenture of Lease between The Prudential Insurance Company of
America and Empire State Building Associates, dated 2-15-65, and recorded
2-15-65 in Liber 5314 Page 479;

          Agreement
and Declaration by and between The Prudential Insurance Company of America and
Empire State Building Associates, dated 12-6-65, and recorded 12-10-65 in Liber
5353 Page 260.

EXHIBIT 2

Operating Sublease

          Terms,
Covenants, Conditions, Provisions, and Agreements of the Agreement of Sublease
dated 12/27/61 and recorded on 12/27/61 in Liber 5173 Page 155 made by Empire
State Building Associates, as sub-landlord, to Lawrence A. Wien, Harry B.
Helmsley, Martin Weiner Realty Corporation and Parempco Inc., Joint Venturers,
associated under the name of Empire State Building Company, as sub-tenant, and
with respect thereto:

          Terms,
Covenants, Conditions and Provisions of First Modification of Sublease between
Empire State Building Associates, as sublandlord, and Lawrence A. Wien, Harry
B. Helmsley, Wico Trading Corporation and Martin Weiner Realty Corporation,
Joint Venturers associated under the name of Empire State Building Company,
subtenants (with consent from The Prudential Insurance Company of America)
dated 2/15/65 and recorded on 2/15/65 in Liber 5315 Page 1.

2

SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT
AGREEMENT

          SUBORDINATION,
NON-DISTURBANCE AND ATTORNMENT AGREEMENT (this “Agreement”) dated as of
July 14, 2008, between EMPIRE STATE BUILDING ASSOCIATES L.L.C. (“Master Lessee”), a limited liability
company organized and existing under the laws of the State of New York having
its principal place of business c/o Wien & Malkin LLP, 60 East 42nd Street,
New York, New York 10165; and COTY INC. (“Subtenant”),
a corporation organized and existing under the laws of the State of Delaware
having its principal place of business at Two Park Avenue, New York, New York
10016.

W I T N E S S E T H:

          Master
Lessee is the lessee by mesne assignments under that certain Indenture of
Ground Lease more particularly described in Exhibit 1 annexed hereto and made
part hereof (as amended, supplemented or otherwise modified from time to time,
the “Master Lease”)
pursuant to which it leases the land described on Schedule A annexed hereto and
made part hereof (the “Land”)
and the building (the “Building”)
known as The Empire State Building, 350 Fifth Avenue, New York, New York from
Empire State Land Associates L.L.C. In turn, Master Lessee sublets the Land and
Building to Empire State Building Company L.L.C. (“Sublandlord”) pursuant to that certain
Agreement of Sublease more particularly described in Exhibit 2 annexed hereto
and made part hereof (as amended, supplemented or otherwise modified from time
to time, the “Operating Sublease”).

          Sublandlord
and Subtenant entered into a Sublease, dated as of July 14, 2008 (the “Sublease”) pursuant to which Subtenant
subleases a portion of the Building more particularly described in the Sublease
(the “Subleased Premises”).

          Subtenant
desires to be assured of the continued use and occupancy of the Subleased
Premises under the terms of the Sublease if the term of the Operating Sublease
is terminated or expires prior to the last day of the term of the Sublease.

          Master
Lessee agrees to such continued use and occupancy by Subtenant, provided that
Subtenant agrees to recognize and attorn to Master Lessee.

          NOW,
THEREFORE, in consideration of the premises and covenants herein contained, it
is agreed:

          1. Subject
to the provisions hereinafter provided, the Sublease and all of the rights
under the Sublease are and shall remain subject and subordinate to the Master
Lease and to all of the terms thereof and the Master Lessee’s rights thereunder.

          2. If the
term of the Operating Sublease is terminated or expires prior to the expiration
of the term of the Sublease, then (a) the Sublease shall not be terminated, (b)
Master Lessee shall not name or join Subtenant in summary or other proceedings
to obtain possession of the Subleased Premises or to terminate the Sublease and
(c) Master Lessee shall not disturb the use and occupancy of Subtenant under
the Sublease so long as, with respect to each of clauses (a), (b) and (c),
Subtenant is not in default, beyond any applicable notice and/or cure period,
of any term, covenant or condition of the Sublease to be performed or satisfied
by Subtenant.

          3. If the
term of the Operating Sublease is terminated or expires prior to the expiration
of the term of the Sublease, Subtenant shall attorn to Master Lessee as the
sublandlord under the Sublease. All rights and obligations under the Sublease
shall continue as though such termination or expiration of the term of the
Operating Sublease had not occurred. The provisions of the foregoing two
sentences are intended to be effected automatically and be self-operative
without the need for further documentation to effect. Subtenant waives the
provisions of any statute or rule of law now or hereafter in effect that may
give or purport to give Subtenant any right or election to terminate or
otherwise adversely affect the Sublease and the obligations of Subtenant
thereunder by reason of any such termination or expiration of the term of the
Lease.

          4.
Notwithstanding anything in this Agreement set forth to the contrary, Master
Lessee shall not in any event (a) be liable for any previous act, omission,
default, misrepresentation or breach of any warranty of Sublandlord, but the
foregoing shall not be construed or interpreted as exculpating Master Lessee
from liability for any damages, fees, costs or expenses arising out of Master
Lessee’s failure to perform any obligation of any prior landlord (including
Sublandlord), to the extent such failure continues following the date that
Master Lessee succeeded to the interest of Sublandlord under the Sublease (the
“Succession Date”), (b) be
subject to any offsets, credits, claims, counterclaims or defenses that
Subtenant may be entitled to assert against Sublandlord; provided, however,
that Master Lessee shall be subject to offsets, credits, claims, counterclaims
or defenses in favor of Subtenant to the extent that they relate to any
unfunded installment of Landlord’s Contribution (as defined in the Sublease)
payable to Subtenant pursuant to the terms of the Sublease, (c) be bound by any
amendment to or modification of the Sublease made without the prior written
consent of Master Lessee, except for any such amendment or modification made
pursuant to provisions of the Sublease that prescribe such amendment or
modification and specify the subject matter thereof, (d) be bound by any
payment by Subtenant of any rent in advance beyond one month’s rent paid in
accordance with the terms of the Sublease or (e) be responsible for or with
respect to the retention, application and/or return to Subtenant of any
security deposit paid to Sublandlord, whether or not still held by Sublandlord,
unless and until Master Lessee has actually received, or been credited with,
the full amount of such security deposit. It is agreed that after the
Succession Date, nothing herein shall be deemed to relieve Master Lessee from
performing, in accordance with the terms of the Sublease and this Agreement,
the obligations of the Sublandlord under the Sublease if the same have not been
performed as of the Succession Date and any other obligation that may accrue
thereafter. If any obligation of Sublandlord shall not have been performed
prior to the Succession Date and Master Lessee is required to perform the same
after the Succession Date pursuant to the terms of the Sublease and/or this
Agreement, and if Master Lessee shall default in its obligation to perform the
same, then Subtenant’s remedies for such non-performance shall be as prescribed
in the Sublease or as may exist at law. Notwithstanding anything herein to the
contrary, Master Lessee shall not be liable for any monetary damages accruing
prior to the Succession Date as a result of Sublandlord’s failure to perform
any obligation required under the Sublease to have been performed prior to the
Succession Date, except as otherwise provided in clause (b) of this Paragraph
4.

          5. If any
default (which includes any act or failure to act) shall occur that shall
permit Subtenant to terminate the term of the Sublease or cancel such Sublease
(whether immediately or after the lapse of time) (a “Termination Right”), Subtenant shall
promptly give Master Lessee notice of such event and a reasonable opportunity
to remedy such event (but not less than (a) ten (10) business days after such
notice in the case of a monetary default and (b) thirty (30) days in all other
circumstances). If Master Lessee shall have cured any monetary default within
the aforesaid time period or have commenced to effect such a cure within the
relevant time period in all other cases (and continue to act diligently to
prosecute such cure to completion), then Subtenant shall not effect such a
termination and the Sublease shall continue in effect pursuant to its terms.
Master Lessee shall be entitled to additional time to cure such default if (x)
Master Lessee shall require more than thirty (30) days following such notice to
remedy the default (other than a monetary default) giving rise to the
Termination Right, (y) Master Lessee shall have given notice of its intention
to remedy the event within ten (10) days following its receipt of Subtenant’s
notice and (z) thereafter promptly takes and diligently pursues commercially
reasonable steps to effect such remedy.

          6. In all
events, the liability of Master Lessee to Subtenant whether under this
Agreement or the Sublease and Subtenant’s right to be made whole for any
damage, injury or loss it may sustain shall be limited and restricted to Master
Lessee’s estate in the Subleased Premises and the proceeds of any sale thereof
and shall in no event exceed such interest or proceeds. In no event shall
Subtenant name or seek to name any member, agent, employee or affiliate of
Master Lessee in any action, proceeding, arbitration or other form of
litigation, whether to collect any deficiency or otherwise, in connection with
any claim arising out of or in connection with the Sublease or this Agreement
(whether before or after the expiration or earlier termination of the term of
the Lease).

          7. Any
notice required or desired to be given in connection with this Agreement shall
be in writing and shall be given to the parties hereto at the addresses set
forth below by (a) personal delivery to the person to whom notices are
designated to be given hereunder or (b) by facsimile transmittal, provided that
such transmittal is electronically confirmed to have been successfully sent and
an original, executed copy of such notice is delivered personally within one
(1) business day to the designated recipient of such notice. Notices shall be
deemed effective upon receipt by the designated person but the failure of any
such person to accept any notice or the failure to deliver

2

any such notice because any designated recipient is not available to
receive the same shall not be deemed to invalidate the effectiveness of such
notice. Notices shall be addressed as follows:

	
  

 	
  

 
	
  

 	
 To Master
 Lessee:

 
	
  

 	
 Empire State
 Building Associates L.L.C. 

 
	
  

 	
 c/o Wien
 & Malkin LLP

 
	
  

 	
 60 East 42nd
 Street

 
	
  

 	
 New York,
 New York 10165

 
	
  

 	
 Attention:
 Senior Asset Manager

 
	
  

 	
 Facsimile
 Number: (212) 850-2796

 
	
  

 	
  

 
	
  

 	
 To
 Subtenant:

 
	
  

 	
 Coty Inc.

 
	
  

 	
 Two Park
 Avenue

 
	
  

 	
 New York,
 New York 10016

 
	
  

 	
 Attention:
 Chief Financial Officer 

 
	
  

 	
 Facsimile
 Number: (212) 479-4508

 
	
  

 	
  

 
	
  

 	
 With a copy
 to:

 
	
  

 	
  

 
	
  

 	
 Coty Inc.

 
	
  

 	
 Two Park
 Avenue

 
	
  

 	
 New York,
 New York 10016

 
	
  

 	
 Attention:
 General Counsel

 
	
  

 	
 Facsimile
 Number: (212) 479-4328

 

Each party hereto may designate a different person and address for the
receipt of notices by notice given in the aforesaid manner.

          8. A
“business day” is deemed to be any day, except Saturday, Sunday and any day
that a majority of the commercial banks chartered by the State of New York
having branches in the Borough of Manhattan are closed for the purpose of
accepting deposits (other than by automatic teller machine or similar devices
or by electronic transfer of funds).

          9. The
provisions of this Agreement are binding upon and shall inure to the benefit of
the successors and assigns of the parties hereto.

          10. If there
is any conflict or ambiguity between any term of this Agreement and any term of
the Sublease, the term of this Agreement shall control.

          11. This
Agreement shall be governed by and construed in accordance with the substantive
laws of the State of New York without giving effect to any choice or conflicts
of law doctrine or policy. Any legal proceeding respecting any cause of action
or claim arising hereunder shall be brought in the courts of the State of New
York sitting in the County of New York.

          12. Master
Lessee and Subtenant waive trial by jury in any action or proceeding or
counterclaim arising out of this Agreement brought or made by either of them.

          13. This
Agreement may not be amended or terminated orally.

          14. This
Agreement constitutes the sole agreement between the parties with respect to
the subject matter hereof and supersedes any prior agreement (written or oral)
between them with respect to such subject matter.

          15. This
Agreement may be executed in two or more counterparts and all counterparts so
executed shall for all purposes constitute one agreement binding on all of the
parties hereto, notwithstanding that all parties

3

shall not have executed the same counterparts. Facsimile and photocopy
signatures on this Agreement shall have the same force and effect as originals.

[SIGNATURE PAGE FOLLOWS]

4

          IN
WITNESS WHEREOF, the parties hereto have executed these presents the day and
year first above written.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 EMPIRE STATE
 LAND ASSOCIATES L.L.C.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
      /s/
 Peter L. Malkin

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name: Peter L. Malkin

 
	
  

 	
 Title: Member

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 COTY INC.

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
      /s/
 Michael Fishoff

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name: Michael Fishoff

 
	
  

 	
 Title: Chief Financial
 Officer

 

	
  

 	
  

 	
  

 
	
 STATE OF NEW YORK)

 	
  

 	
  

 
	
  

 	
 :

 	
 ss.

 
	
 COUNTY OF NEW YORK)

 	
  

 	
  

 

          On
the 14th day of July, 2008, before me, the undersigned, personally appeared Peter L. Malkin personally known to me or proved to me on the
basis of satisfactory evidence to be the individual(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 capacity(ies), and that by his/her/their signature(s) on the instrument, the
individual(s), or the person(s) on behalf of which the individual(s) acted, executed the instrument.

	
  

 	
  

 	
  

 
	
  

 	
      /s/
 Judy H. Love

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 Notary Public

 	
  

 
	
  

 	
 JUDY
 H. LOVE

 	
  

 
	
  

 	
 Notary
 Public, State of New York

 	
  

 
	
  

 	
 No.
 01LO4877662

 	
  

 
	
  

 	
 Qualified
 in Queens County

 	
  

 
	
  

 	
 Commission
 Expires 11/17/2010

 	
  

 

	
  

 	
  

 	
  

 
	
 STATE OF NEW YORK)

 	
  

 	
  

 
	
  

 	
 :

 	
 ss.

 
	
 COUNTY OF NEW YORK)

 	
  

 	
  

 

          On the 14th
day of July, 2008, before me, the undersigned, personally appeared Michael Fishoff personally known to me or proved to me on the
basis of satisfactory evidence to be the individual(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 capacity, and that by his/her/their signature(s) on the instrument, the
individual(s), or the person(s) on behalf of which the individual(s) acted, executed the instrument.

	
  

 	
  

 	
  

 
	
  

 	
      /s/
 Lori Rosario-Griffin

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 Notary Public

 	
  

 
	
  

 	
 LORI ROSARIO-GRIFFIN

 	
  

 
	
  

 	
 NOTARY PUBLIC, State of New York

 	
  

 
	
  

 	
 No. 02RO6106850

 	
  

 
	
  

 	
 Qualified in New York County

 	
  

 
	
  

 	
 Commission Expires March 15, 2012

 	
  

 

5

SCHEDULE A

The Land

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

BEGINNING at the comer formed by the intersection of the southerly side
of 34th Street with the westerly side of 5th Avenue;

THENCE southerly along the westerly side of 5th Avenue 197
feet 6 inches to the northerly side of 33rd Street; 

THENCE westerly along the northerly side of 33rd Street 500
feet;

THENCE northerly and parallel with the westerly side of 5th
Avenue 98 feet 9 inches to the middle line of the block; 

THENCE easterly and parallel with the northerly side of 33rd
Street, 75 feet;

THENCE again northerly and parallel with the westerly side of 5th
Avenue and part of the distance through a party wall 98 feet 9 inches to the
southerly side of 34th Street;

THENCE easterly along the southerly side of 34th Street 425
feet to the corner aforesaid, the point or place of BEGINNING.

350 Fifth Avenue, New York, NY

Block: 835

Lot: 41

6

EXHIBIT 1

Master Lease

          Indenture
of Ground Lease dated 12-21-51 by and between The Prudential Insurance Company
of America, as landlord and Alglan Realty Corporation, Rostev Realty
Corporation and Bentob Realty Corporation as tenants, and recorded 12-21-51 in
Liber 4759 Page 534, as assigned and/or modified pursuant to:

          Modification
of Indenture of Lease between The Prudential Insurance Company of America and
Empire State Building Associates, dated 12-27-61, and recorded 12-27-61 in
Liber 5173 Page 49;

          Second
Modification of Indenture of Lease between The Prudential Insurance Company of
America and Empire State Building Associates, dated 2-15-65, and recorded
2-15-65 in Liber 5314 Page 479;

          Agreement
and Declaration by and between The Prudential Insurance Company of America and
Empire State Building Associates, dated 12-6-65, and recorded 12-10-65 in Liber
5353 Page 260.

7

EXHIBIT 2

Operating Sublease

          Terms,
Covenants, Conditions, Provisions, and Agreements of the Agreement of Sublease
dated 12/27/61 and recorded on 12/27/61 in Liber 5173 Page 155 made by Empire
State Building Associates, as sub-landlord, to Lawrence A. Wien, Harry B.
Helmsley, Martin Weiner Realty Corporation and Parempco Inc., Joint Venturers,
associated under the name of Empire State Building Company, as sub-tenant., and
with respect thereto:

          Terms,
Covenants, Conditions and Provisions of First Modification of Sublease between
Empire State Building Associates, as sublandlord, and Lawrence A. Wien, Harry
B. Helmsley, Wico Trading Corporation and Martin Weiner Realty Corporation,
Joint Venturers associated under the name of Empire State Building Company,
subtenants, (with consent from The Prudential Insurance Company of America)
dated 2/15/65 and recorded on 2/15/65 in Liber 5315 Page 1.

SUBORDINATION NON-DISTURBANCE AND ATTORNMENT
AGREEMENT

	
  

 
	

 

 

CAPITAL ONE, N.A.

- with -

COTY INC.

	
  

 
	

 

 

PREPARED BY:

SUBORDINATION NONDISTURBANCE AND ATTORNMENT AGREEMENT

This Subordination Nondisturbance and Attornment Agreement (being
hereinafter referred to as this “Agreement”) made as of this 14th day of
July, 2008, between CAPITAL ONE, N.A.
a national banking association, successor by merger to North Fork Bank, having
its principal offices at 275 Broadhollow Road, Melville, New York 11747
(“Mortgagee”) and COTY INC., a
Delaware corporation, having an office at Two Park Avenue, New York, New York
10016 (“Tenant”).

W I T N E S S E T H:

          WHEREAS, Mortgagee now owns and holds a
certain mortgage set forth on Schedule A annexed hereto (including, without
limitation, all present and future renewals, modifications, consolidations,
spreaders, replacements and extensions thereof, the “Mortgage”), made between
Mortgagee and Empire State Land Associates L.L.C. (“ESLA”) and Empire State
Building Associates L.L.C. (“ESBA”; ESBA and ESLA, collectively, “Mortgagor”),
which Mortgage affects, among other things, (i) that certain parcel of land
more particularly described in Schedule B annexed hereto (the
“Property”) and (ii) the improvements located thereon (the “Building”); and

          WHEREAS, by lease dated July 14,
2008 (the “Lease”), a true copy of which has been furnished to Mortgagee,
Empire State Building Company L.L.C. (“Landlord”) has leased and demised to
Tenant and Tenant has hired and taken from Landlord a portion of the Building
more particularly described in the Lease (the “Demised Premises”); and

          WHEREAS, at the request of Tenant,
Mortgagee is willing to enter into this Agreement with Tenant upon the terms,
covenants and conditions contained herein.

          NOW, THEREFORE, in consideration of the
foregoing premises and the covenants and agreements hereinafter set forth, the
parties hereto mutually covenant and agree as follows:

          1. Subject
to the provisions hereinafter provided, the Lease and all rights of Tenant
thereunder are and shall be subject and subordinate to the Mortgage and to each
and every advance made or to be made thereunder. The provisions of this
paragraph shall be self-operative and no further instrument of subordination
shall be required or needed. Nevertheless, in confirmation of such
subordination, Tenant shall, at the reasonable request of the holder of the
Mortgage, promptly execute, acknowledge and deliver such further instrument of
subordination as may be required by such holder so long as such instrument does
not increase the obligations and liabilities of Tenant as provided hereunder.

          2. As long
as no default under the Lease on the part of Tenant then exists beyond the
expiration of any notice and grace period:

                    (a)
Tenant shall not be named or joined as a party defendant in any foreclosure
action or proceeding to collect the debt secured by the Mortgage which may be
instituted or taken by Mortgagee under or in connection with the Mortgage or
any obligation 

secured thereby or by any holder of the Mortgage or by any holder of
any interest in the Mortgage or by any successor or assignee of such interest
(unless required by law); and

                    (b)
Tenant shall not be evicted from the Demised Premises or any part(s) thereof
nor shall Tenant’s leasehold estate or possession of the Demised Premises under
the Lease be terminated or disturbed nor shall any of Tenant’s rights under the
Lease be affected in any way solely by reason of any default under the
Mortgage.

          3. If
Mortgagee or any holder of the Mortgage or any holder of any interest in the
Mortgage or any successor or assignee of any one or more of the foregoing shall
succeed to the rights of Mortgagor or Landlord under the lease, whether through
possession or foreclosure action or delivery of a new deed, then the Lease
shall not terminate and Tenant shall attorn to and recognize the party so
succeeding to Landlord’s rights (such party being hereinafter referred to as
the “Successor Landlord”) as Tenant’s landlord under the Lease and Successor
Landlord shall be conclusively deemed to have accepted such attornment and
shall recognize Tenant as tenant under the Lease. Tenant shall promptly execute
and deliver any instrument that Successor Landlord may reasonably request to
evidence such attornment (so long as such instrument does not increase the
obligations and liabilities of Tenant as provided hereunder). Upon such
attornment the Lease shall continue in full force and effect as, or as if it
were, a direct lease between Successor Landlord and Tenant upon all of the same
terms, conditions and covenants as are set forth in the Lease, except that
Successor Landlord shall not:

                    (a)
be responsible for any monies owing by or on deposit with Landlord to the
credit of Tenant, except to the extent turned over to Successor Landlord;

                    (b)
be bound by any previous modification or extension of the Lease not expressly
provided for in the Lease such as in Articles 4, 32 and 43 of the Lease or by
any previous prepayment of rent for more than one (1) month, unless such
modification, extension or prepayment shall have been expressly approved in
writing by Mortgagee;

                    (c)
be liable for any act, omission, neglect or default on the part of Landlord
under the Lease, but the foregoing shall not be construed or interpreted as
exculpating Successor Landlord from liability for any damages, fees, costs or
expenses arising out of Successor Landlord’s failure to perform any obligations
of any prior landlord, which failure continues following the date title to the
Property is transferred to Successor Landlord; or

                    (d)
be subject to any claim, counterclaim, defense or setoff which shall have
theretofore accrued to Tenant against Landlord.

          4. No
modifications may be made to the Lease by Landlord and/or Tenant without
Mortgagee’s prior written consent except for any modifications made to the
Lease pursuant to the provisions of Articles 4, 32 and 43 of the Lease.
Landlord shall not unreasonably withhold or delay its consent to any
modification of the Lease requiring Landlord’s consent, provided that such
modifications do not materially alter the economic or other material terms of
the Lease.

          5. Tenant
hereby represents and warrants to Mortgagee that as of the date hereof (i)
Tenant is the owner and holder of the tenant’s interest under the Lease, (ii)
the Lease has not been modified or amended, (iii) the Lease is in full force
and effect in accordance with its terms, 

(iv) to the best of Tenant’s knowledge, neither Tenant nor Landlord is
in default under any of the terms, covenants or provisions of the Lease which
default has continued beyond the expiration of any applicable cure period, no
event has occurred which but for the passage of time or the giving of notice or
both would constitute an event of default by Tenant or Landlord under the
Lease, (v) neither Tenant nor Landlord has commenced any action or given or
received any notice for the purpose of terminating the Lease, (vi) all rents,
additional rents and other sums due and payable under the Lease have been paid
in full and no rents, additional rents or other sums payable under the Lease
have been paid for more than one (1) month in advance of the due dates thereof,
and (vii) to the best of Tenant’s knowledge, there are no offsets or defenses
to the payment of the rents, additional rents, or other sums payable by Tenant
under the Lease.

          6. Tenant
agrees that if there shall occur any action or omission by Landlord which would
give Tenant the right to terminate the Lease or to claim a partial or total
eviction, Tenant shall not exercise any such right until (i) Tenant has
notified Mortgagee in writing of such act or omission and, provided Mortgagee
shall have notified Tenant of Mortgagee’s intention to cure such act or
omission within thirty (30) days after Mortgagee’s receipt of Tenant’s notice,
(ii) a reasonable period for commencing and curing the remedy of such act or
omission shall have elapsed following the giving of such notice by Tenant
(which reasonable period shall in no event be (x) less than the period to which
Landlord would be entitled under the Lease or otherwise after similar notice to
effect such remedy and (y) more than ninety (90) days after the period to which
Landlord would be entitled under the Lease or otherwise after similar notice to
effect such remedy), and Mortgagee shall have failed, within such reasonable
period, to commence and continue to remedy such act or omission and to cause
the same to be remedied.

          7. This
Agreement may not be discharged or modified orally or in any manner other than
by an instrument in writing specifically referring to this Agreement and signed
by a duly authorized officer or other representative of Mortgagee and by a duly
authorized or other representative of Tenant.

          8. This
Agreement constitutes the entire agreement between the parties with respect to
the subject matter hereof.

          9. The
covenants and agreements herein contained shall apply to, inure to the benefit
of, and be binding upon Mortgagee, Tenant and their respective successors,
assigns and legal representatives.

[SIGNATURE PAGES FOLLOW]

          IN WITNESS WHEREOF, Mortgagee and Tenant,
intended to be legally bound, have duly executed this Agreement as of the day
and year first above written.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CAPITAL ONE,
 N.A.

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
     /s/
 Louis J. Rosado

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Louis
 J. Rosado

 	
  

 
	
  

 	
  

 	
 Title:
 Senior Vice President

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 COTY INC.

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
     /s/
 Michael Fishoff

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name:
 Michael Fishoff

 	
  

 
	
  

 	
  

 	
 Title: CFO

 	
  

 

	
  

 	
  

 
	
 STATE OF NEW
 YORK)

 	
  

 
	
 :ss.:

 	
  

 
	
 COUNTY OF
 SUFFOLK)

 	
  

 

          On the 11
day of July, 2008, before me, the undersigned, personally appeared Louis
J. Rosado, personally known to me or proved to me on the basis of satisfactory
evidence to be the individual whose name is subscribed to the within instrument
and acknowledged to me that he executed the same in his capacity, and that by
his signature on the instrument, the individual, or the person on behalf of
which the individual acted, executed the instrument.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
     /s/
 Tara J. Leetom

 
	
  

 	

 

 	
  

 
	
  

 	
 Notary
 Public

 	
  

 
	
  

 	
  

 	
 TARA J.
 LEETOM

 	
  

 
	
  

 	
       Notary
 Public, State of New York

 
	
  

 	
  

 	
      No. 02LE6013427

 	
  

 
	
  

 	
           Qualified
 in Queens County

 
	
  

 	
     Commission
 Expires Sept. 14, 2010

 

	
  

 	
  

 
	
 STATE OF NEW
 YORK)

 	
  

 
	
 :ss.:

 	
  

 
	
 COUNTY OF
 NEW YORK)

 	
  

 

          On
the 14 day of July, 2008, before me, the undersigned, personally
appeared Michael Fishoff, personally known to me or proved to me on
the basis of satisfactory evidence to be the individual whose name is
subscribed to the within instrument and acknowledged to me that he executed the
same in his capacity, and that by his signature on the instrument, the
individual, or the person on behalf of which the individual acted, executed the
instrument.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
      /s/
 Lori Rosario-Griffin

 
	
  

 	

 

 	
  

 
	
  

 	
 Notary
 Public

 	
  

 
	
  

 	
  

 	
 LORI
 ROSARIO-GRIFFIN

 	
  

 
	
  

 	
       NOTARY
 PUBLIC, State of New York

 
	
  

 	
  

 	
           No. 02RO6106850

 	
  

 
	
  

 	
           Qualified
 in New York County

 
	
  

 	
     Commission
 Expires March 15, 2012

 

2

SCHEDULE A - MORTGAGE CHAIN

	
  

 	
  

 
	
 1.

 	
 Mortgage and Security Agreement dated June 28, 1994 in the principal
 amount of $11,700,000.00 made by Trump Empire State Partners to Principal
 Mutual Life Insurance Company and recorded July 1, 1994 in Reel 2111 Page
 2049 in the Office of the City Register, New York County;

 
	
  

 	
  

 
	
  

 	
 Mortgage Tax Paid: $321,750.00

 
	
  

 	
  

 
	
  

 	
 Which mortgage was assigned by Principal Mutual Life Insurance
 Company to North Fork Bank by Assignment of Mortgage dated as of April 9,
 2002 and recorded April 26, 2002 in Reel 3500 Page 805 in the Office of the
 City Register, New York County;

 
	
  

 	
  

 
	
  

 	
 which mortgage was spread to encumber the Leasehold Estate in the
 Mortgaged Property by Spreader Agreement dated as of April 17, 2002 made by
 and between Empire State Building Associates L.L.C. and Empire State Land
 Associates L.L.C. to North Fork Bank and recorded April 26, 2002 in Reel 3500
 Page 810 in the Office of the City Register, New York County

 
	
  

 	
  

 
	
 2.

 	
 Mortgage dated as of April 17, 2002 made by Empire State Building
 Associates L.L.C. and Empire State Land Associates L.L.C. to North Fork Bank
 in the principal sum of $48,800,000.00 and recorded April 26, 2002 in Reel
 3500 Page 819 in the Office of the City Register, New York County;

 
	
  

 	
  

 
	
  

 	
 Mortgage Tax Paid: $1,342,000.00;

 
	
  

 	
  

 
	
  

 	
 Which two (2) mortgages were consolidated to form a single lien of
 $60,500,000.00 by Consolidation and Extension Agreement dated as of April 17,
 2002 made by and among Empire State Building Associates L.L.C. and Empire
 State Land Associates L.L.C. and North Fork Bank and recorded April 26, 2002
 in Reel 3500 Page 831 in the Office of the City Register, New York County;

 
	
  

 	
  

 
	
  

 	
 Which two (2) mortgages, as consolidated, were modified by unrecorded
 Modification Agreement dated as of November 1, 2006 made by and among Empire
 State Building Associates L.L.C. and Empire State Land Associates L.L.C. and
 North Fork Bank.

 

3

SCHEDULE B - LEGAL DESCRIPTION

SCHEDULE A

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

BEGINNING at the corner formed by the intersection of the southerly
side of 34th Street with the westerly side of 5th Avenue;

THENCE southerly along the westerly side of 5th Avenue 197 feet 6
inches to the northerly side of 33rd Street;

THENCE westerly along the northerly side of 33rd Street 500 feet;

THENCE northerly and parallel with the westerly side of 5th Avenue 98
feet 9 inches to the middle line of the block;

THENCE easterly and parallel with the northerly side of 33rd Street, 75
feet;

THENCE again northerly and parallel with the westerly side of 5th
Avenue and part of the distance through a party wall 98 feet 9 inches to the
southerly side of 34th Street;

THENCE easterly along the southerly side of 34th Street 425 feet to the
corner aforesaid, the point or place of BEGINNING.

Said premises known as: 350 Fifth Avenue, New York, N.Y.

Block: 835

Lot: 41

4

FIRST LEASE
MODIFICATION AGREEMENT

          AGREEMENT made
as of this 17th             day
of March, 2009, between EMPIRE STATE BUILDING COMPANY L.L.C., a New York
limited liability company, with an office at 350 Fifth Avenue, New York, New
York 10118 (hereinafter called “Landlord”), and CC TY INC., a New York
corporation with an office at 350 Fifth Avenue, New York, New York 10118
(hereinafter called “Tenant”).

WITNESSETH:

          WHEREAS, Landlord
and Tenant are the landlord and tenant, respectively, under that certain lease
dated as of July 14, 2008 (the “Lease”), covering the entire rentable area of
the fourteenth (14th) floor and a portion of the fifteenth (15th)
floor (collectively, the “Demised Premises”) of the building (the “Building”)
known as The Empire State Building, located at 350 Fifth Avenue, New York, New
York; and

          WHEREAS, Landlord and Tenant have entered
into a certain Commencement Date Agreement dated January 14, 2009 with respect
to the Lease, confirming that the Commencement Date (as defined in the Lease)
is December 15, 2008 and that the Expiration Date (as defined in the Lease) is October 31, 2024; and

          WHEREAS, Landlord and Tenant wish to modify
the Lease by adding to the premises demised under the Lease approximately 483
rentable square feet of storage space, designated as Storerooms 15A & 15C,
each on the fifteenth (15th) floor of the Building, approximately as
shown on the space diagram attached hereto and made a part hereof as Exhibit A
(collectively, the “First Additional Storage Premises”), in accordance with the
terms and conditions hereinafter set forth.

          NOW, THEREFORE, in
consideration of the premises, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Landlord and
Tenant hereby agree as follows:

          1.
The First Additional
Storage Premises shall be deemed to be, and hereby is, added to the premises
demised under the Lease, for a term of years, to commence on the date (the
“FASP Commencement Date”) that this Agreement is executed and delivered by
Landlord and Tenant and consented to by the party named in Article 11 of this
Agreement, and to expire on the Expiration Date, unless such term shall sooner
terminate as in the Lease, as modified hereby, provided. Except as otherwise
set forth herein, the First Additional Storage Premises shall be leased Tenant
pursuant to all of the terms, covenants and conditions of the Lease (as
modified hereby). Landlord and Tenant agree that the rentable square foot area
of the First Additional Storage Premises shall be deemed to be 483 rentable
square feet. Tenant shall use the First Additional Storage Premises solely for
storage relating to Tenant’s business, and for no other purpose.

          2.
Commencing on the FASP
Commencement Date, Tenant shall pay Landlord fixed annual rent for the First
Additional Storage Premises (exclusive of electricity and subject to adjustment
under Article 2B of the Lease, as modified hereby) at the rate of Twelve
Thousand Seventy-Five and 00/100 ($12,075.00) Dollars per annum ($1,006.50 per month).

          3.
Tenant shall pay Landlord
operating expense escalation additional rent for the First Additional Storage
Premises, in accordance with Article 2B of the Lease, except that the term “The Percentage” shall mean .0178
percent (.0178%).

          4.
Tenant shall pay Landlord
real estate tax escalation additional rent for the First Additional Storage
Premises, in accordance with Article 2C of the Lease, except that the term “The

Percentage” for purposes of computing
tax escalation additional rent for the First Additional Storage Premises shall
mean .0178 percent (.0178%).

          5.
Tenant agrees to take and accept possession of the First Additional Storage
Premises broom-clean, free of debris and otherwise in its “as is” condition.
Tenant acknowledges and agrees that Landlord shall have no obligation to
perform any work in or to the First Additional Storage Premises to make it
suitable and ready for Tenant’s occupancy and use. Landlord shall deliver possession
of the First Additional Storage Premises to Tenant on the FASP Commencement
Date is said condition, free of any occupancies or tenancies.

          6.
Landlord shall
redistribute and furnish electricity to Tenant for the First Additional Storage
Premises, on a rent inclusion basis, in accordance with Article 3B of the
Lease, except that, if and so long as Tenant uses the First Additional Storage
Premises solely for storage purposes, then the ERIF (as such term is defined in
the Lease) for such space (but not the Demised Premises) shall be calculated at
one (1) kilowatt (1KW) of demand. Landlord represents that, as of the date of
this Agreement, such ERIF is $40.00 per month, which monthly payment shall be
subject to adjustment due to rate changes or due to Tenant’s consumption, as in
said Article 3B provided. However, if Tenant uses the First Additional Storage
Premises for any purpose other than storage purposes, then and in that event, the ERIF for such space
shall no longer be calculated at one (1) kilowatt (1KW) of demand, but shall be
calculated solely in accordance with the terms of Article 3B of the Lease.

          7.
A. Tenant represents and
warrants that it neither consulted nor negotiated with any broker or finder
with regard to this Agreement other than CB Richard Ellis, Inc. and Colliers
ABR, Inc. (collectively, the “Brokers”). Tenant shall indemnify, defend and
save Landlord harmless from and against any claims for fees or commissions from
anyone other than the Brokers with whom Tenant has dealt in connection with
this Agreement.

                    B.
Landlord represents and warrants that it neither consulted nor negotiated with
any broker or finder with regard to this Agreement other than the Brokers.
Landlord shall indemnify, defend and save Tenant harmless from and against any
claims for fees or commissions from anyone including the Brokers with whom
Landlord has dealt in connection with this Agreement. Landlord shall pay any
commission or fee due and owing to the Brokers pursuant to separate agreements
with them.

          8.
Landlord shall provide no
heat, air-conditioning, cleaning, water or any other services to the First
Additional Storage Premises, except as otherwise expressly set forth in Article
6 of this Agreement.

          9.
A. Tenant shall not be
entitled to any additional Empire State Building Observatory Executive Passes
with respect to the leasing of the First Additional Storage Premises.

                    B.
The provisions of Article 24E of the Lease shall not be applicable to the First
Additional Storage Premises.

          10.
The Renewal Option set
forth in Article 32 of the Lease shall be applicable to the First Additional
Storage Premises; provided, however, that Tenant may not exercise such Renewal
Option with respect to the First Additional Storage Premises without also
exercising such Renewal Option with respect to the Demised Premises, but Tenant
may exercise such Renewal Option with respect to the Demised Premises without
also exercising it with respect to the First Additional Storage Premises.
Tenant’s renewal notice shall indicate whether Tenant is also exercising its
Renewal Option with respect to the First Additional Storage Premises. If
Tenant’s renewal notice shall fail to so indicate, Tenant shall be deemed to
have exercised such Renewal Option with respect to the entire Demised Premises
and the First Additional Storage Space.

          11.
Landlord shall have no obligation to obtain any subordination, non-disturbance
and attornment agreement with respect to the First Additional Storage Premises;
provided, however, that Landlord shall obtain the consent to this Agreement
from Capital One, N.A. (in the form attached hereto and made a part hereof as
Exhibit B), as is required under certain Subordination, Non-Disturbance and
Attornement Agreement dated as of July 14, 2008 between Capital One, N. A. and
Tenant.

          12.
A. Notwithstanding
anything contained in the Lease, as modified hereby, to the contrary, it is
understood and agreed that Landlord may, at Tenant’s reasonable expense, effect
such work as is necessary to cause Tenant’s entrance door signage for the First
Additional Storage Premises to conform to the then Building standards and
specifications for entrance door signage. Landlord shall effect such work
within thirty (30) days after Tenant’s Signage Proposal (as hereinafter
defined) has been approved by Landlord. Tenant shall permit Landlord and its
contractors such access to the First Additional Storage Premises (including on
business days, during normal business hours) as is reasonably necessary to
perform such work. Landlord and its contractors shall perform such work in a
good and workmanlike manner and shall use commercially reasonable efforts to
minimize any interference with Tenant’s use of the First Additional Storage
Premises while such work is being performed.

                    B.
It is further understood and agreed that any approved entrance signage for the
First Additional Storage Premises shall conform to the then standards and
specifications of Landlord for such signage (the “Signage Specifications”).
Tenant may submit to Landlord for Landlord’s prior written approval a proposal
regarding the content of any such entrance door signage (“Tenant’s Signage
Proposal”). Any changes to such approved entrance door sign shall be subject to
Landlord’s prior approval and to Landlord’s Signage Specifications. Landlord
shall not withhold, condition or delay Landlord’s approval of Tenant’s Signage
Proposal so long as Tenant’s Signage Proposal conforms to Landlord’s Signage
Specifications.

          13.
Landlord shall have the
right, at any time during the term of the Lease, as modified hereby, upon not
less than ten (10) business days’ notice to Tenant, to effect such work as is
necessary to cause the entrance door to the First Additional Storage Premises
to conform to the then Building standards and specifications for such entrance
doors (the “Entrance Door Work”), at Landlord’s sole cost and expense. Tenant
shall permit Landlord and its contractors such access to the First Additional
Storage Premises (including on business days during normal business hours) as
is reasonably necessary to perform the Entrance Door Work. Landlord and its
contractors shall perform the Entrance Door Work in a good and workerlike
manner, shall use commercially reasonable efforts to minimize any interference
with Tenant’s use of the First Additional Storage Premises while such work is
being performed, and shall repair any damage to the First Additional Storage
Premises resulting from such work.

          14.
The Lease, as modified
hereby, shall be deemed to have been made in New York County, New York, and shall be construed in accordance
with the laws of New York. All actions or proceedings relating, directly or
indirectly, to the Lease, as modified hereby, shall be litigated only in courts
located within the County of New York. Landlord and Tenant, and their
respective successors and assigns, hereby subject themselves to the
jurisdiction of any state or federal court located with such county. Tenant
hereby waives the right to raise any defense based upon inconvenient forum or
make any plea or motion seeking to remove any case to a county other than New
York County.

          15.
A. This Agreement shall not in any way bind Landlord or Tenant until such time
as it has been fully executed and delivered by Landlord and Tenant.

                    B.
Except as herein
modified, all of the terms, covenants and conditions of the Lease are and shall
remain in full force and effect and are hereby ratified and confirmed.

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

                    D.
Tenant hereby represents that, to the best of Tenant’s knowledge, Landlord is
in full compliance with the Lease and is not in default beyond any applicable
grace period of any of its respective obligations under the Lease and there
exists no defense or counterclaim to the payment of any fixed annual rent or
additional rent pursuant thereto.

                    E.
Landlord hereby represents that, to the best of Landlord’s knowledge, Tenant is
in full compliance with the Lease and is not in default beyond any applicable
grace period of any of its respective obligations under the Lease.

          16.
This Agreement may be executed in two (2) or more counterparts and all
counterparts shall for all purposes constitute one agreement binding on all of
the parties hereto, notwithstanding that all parties shall not have executed
the same counterparts. Facsimile and photocopy signatures of this Agreement shall
have the same force and effect as originals.

          IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the day and year first above written.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 EMPIRE STATE BUILDING
 COMPANY L.L.C.,

 	
  

 
	
  

 	
 Landlord

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 By: CB Richard Ellis,
 Inc., as Agent

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 BY:

 	
 /s/ Stephen K. Bynon

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
      Stephen
 K. Bynon, Director of Leasing

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 COTY INC.
 Tenant

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ James E. Shiah

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
      Print
 Name: James E. Shiah

 	
  

 
	
  

 	
  

 	
      Print
 Title: SVP Finance & Global Controller

 	
  

 

EXHIBIT A

First Additional Storage Premises

EXHIBIT B

Consent to First Lease Modification Agreement
by Mortgagee

          The undersigned,
as Mortgagee under that certain Subordination, Non-Disturbance and Attornment
Agreement dated as of July 14, 2008 (the “SNDA”) between the undersigned and
Tenant, hereby consents to the foregoing First Lease Modification Agreement
between Empire State Building Company L.L.C. and Tenant, and agrees that the
terms of the SNDA shall apply to the Lease, as modified by such First Lease
Modification Agreement, including, without limitation, the First Additional
Storage Premises.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CAPITAL ONE,
 N.A.

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Louis J.
 Rosado

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
   Print
 Name: Louis J. Rosado

 	
  

 
	
  

 	
  

 	
   Print
 Title: Senior Vice President

 	
  

 

COMMENCEMENT DATE AGREEMENT

          AGREEMENT made as of the 14th day of
January, 2009 between EMPIRE STATE BUILDING COMPANY L.L.C. (hereinafter
referred to as “Landlord”), and COTY INC. (hereinafter referred to as
“Tenant”).

W I T N E S S E T H:

          WHEREAS, the parties hereto have entered into
a certain agreement of lease (“Lease”) dated as of July 14, 2008, whereby
Landlord has leased to Tenant and Tenant has hired of Landlord certain space on
the 14th and 15th floors of the building known as the
Empire State Building, 350 Fifth Avenue, New York, New York; and

          WHEREAS, the parties hereto agree, pursuant
to Article 1A of the Lease, that the term of the Lease shall commence on
December 15, 2008.

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

	
  

 	
  

 	
  

 
	
  

 	
 1.

 	
 The “Commencement Date” under the Lease shall be and is hereby
 established to be December 15, 2008; and, accordingly, the “Rent Commencement
 Date” under the Lease shall be and is hereby established to be October 15,
 2009, and the “Expiration Date” under the Lease shall be and is hereby
 established to be October 31, 2024.

 
	
  

 	
  

 	
  

 
	
  

 	
 2.

 	
 Except as herein modified, all of the terms, covenants and conditions
 of the Lease are and shall remain in full force and effect and are hereby
 ratified and confirmed.

 
	
  

 	
  

 	
  

 
	
  

 	
 3.

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

 

          IN WITNESS
WHEREOF, the Landlord
and Tenant have respectively signed and sealed this Agreement as of the day and
year first above written.

	
  

 	
  

 	
  

 	
  

 
	
 Signed,
 Sealed and Delivered

 in the presence of:

 	
  

 	
 LANDLORD:

 EMPIRE STATE BUILDING COMPANY L.L.C.

 
	
  

 	
  

 	
 By: 

 	
 /s/
 ILLEGIBLE

 
	

 

 	
  

 	
  

 	

 

 
	
 (As to
 Landlord)

 	
  

 	
 Name:
 ILLEGIBLE

 Title: Director of Operations

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 TENANT: 

 COTY INC.

 
	
 /s/ James E.
 Shiah

 	
  

 	
 By:

 	
 /s/ Jules P.
 Kaufman

 
	

 

 	
  

 	
  

 	

 

 
	
 (As to
 Tenant)

 	
  

 	
 Name: Jules
 P. Kaufman

 Title: SVP, General Counsel & Secretary

 

COMMENCEMENT DATE AGREEMENT

          AGREEMENT made as of the 14th day of
January, 2009 between EMPIRE STATE BUILDING COMPANY L.L.C. (hereinafter
referred to as “Landlord”), and COTY INC. (hereinafter referred to as
“Tenant”).

W I T N E S S E T H:

          WHEREAS, the parties hereto have entered into
a certain agreement of lease (“Lease”) dated as of July 14, 2008, whereby
Landlord has leased to Tenant and Tenant has hired of Landlord certain space on
the 14th and 15th floors of the building known as the
Empire State Building, 350 Fifth Avenue, New York, New York; and

          WHEREAS, the parties hereto agree, pursuant
to Article 1A of the Lease, that the term of the Lease shall commence on
December 15, 2008.

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

	
  

 	
  

 	
  

 
	
  

 	
 1.

 	
 The “Commencement Date” under the Lease shall be and is hereby
 established to be December 15, 2008; and, accordingly, the “Rent Commencement
 Date” under the Lease shall be and is hereby established to be October 15,
 2009, and the “Expiration Date” under the Lease shall be and is hereby
 established to be October 31, 2024.

 
	
  

 	
  

 	
  

 
	
  

 	
 2.

 	
 Except as herein modified, all of the terms, covenants and conditions
 of the Lease are and shall remain in full force and effect and are hereby
 ratified and confirmed.

 
	
  

 	
  

 	
  

 
	
  

 	
 3.

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

 

          IN WITNESS
WHEREOF, the Landlord
and Tenant have respectively signed and sealed this Agreement as of the day and
year first above written.

	
  

 	
  

 	
  

 	
  

 
	
 Signed,
 Sealed and Delivered

 in the presence of:

 	
  

 	
 LANDLORD:

 EMPIRE STATE BUILDING COMPANY L.L.C.

 
	
  

 
	
  

 	
  

 	
 By: 

 	
 /s/
 ILLEGIBLE

 
	

 

 	
  

 	
  

 	

 

 
	
 (As to
 Landlord)

 	
  

 	
 Name:
 ILLEGIBLE

 Title: Director of Operations

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 TENANT: 

 COTY INC.

 
	
  

 
	
 /s/ James E.
 Shiah

 	
  

 	
 By:

 	
 /s/ Jules P.
 Kaufman

 
	

 

 	
  

 	
  

 	

 

 
	
 (As to
 Tenant)

 	
  

 	
 Name: Jules
 P. Kaufman

 Title: SVP, General Counsel & Secretary

 

SECOND LEASE MODIFICATION AGREEMENT 

          AGREEMENT
(“Agreement”) made as of May 19, 2011 between EMPIRE STATE BUILDING COMPANY
L.L.C., a New York limited liability company with an office at 350 Fifth
Avenue, Suite 300, New York, New York 10118 (hereinafter called “Landlord”),
and COTY INC., a Delaware corporation with an office at 350 Fifth Avenue, New
York, New York 10118 (hereinafter called “Tenant”).

W I T N E S S E T H:

          WHEREAS,
Landlord and Tenant are the landlord and tenant, respectively, under that
certain lease dated as of July 14, 2008, covering certain space (the “Original
Demised Premises”) consisting of the entire rentable area of the fourteenth (14th)
floor, and a portion of the fifteenth (15th) floor, of the building
(“Building”) known as the Empire State Building, 350 Fifth Avenue, New York,
New York (the “Original Lease”), which Original Lease was modified by a certain
Commencement Date Agreement dated as of January 14, 2009, and by a certain
First Lease Modification Agreement dated as of March 17, 2009 (the “First
Modification”) (which Original Lease, as so modified, is hereinafter called the
“Lease”); and

          WHEREAS,
pursuant to the First Modification, certain storage space, designated as
Storeroom 15A and Storeroom 15C (collectively, the “Storage Space”), each on
the fifteenth (15th) floor of the Building, was added to the demised
premises under the Original Lease (so that as of the date hereof, the demised
premises under the Lease consists of the Original Demised Premises and the
Storage Space, collectively, the “Existing Demised Premises”); and

          WHEREAS,
the term of the Lease with respect to the Existing Demised Premises is
scheduled to expire on October 31, 2024 (which date is defined in the Lease as
the “Expiration Date”); and

          WHEREAS,
Landlord and Tenant wish to modify the Lease as follows: (i) by adding to the
demised premises thereunder certain space, consisting of the entire rentable
area of each of the sixteenth (16th) floor and the seventeenth (17th)
floor of the Building, approximately as shown on the space diagrams attached
hereto and made a part hereof as Exhibit A (collectively, the “First Additional
Office Premises”); (ii) by extending the term of the Lease with respect to the
Existing Demised Premises to January 31, 2030; and (iii) by otherwise modifying
the provisions of the Lease; all in accordance with the terms and conditions
hereinafter set forth.

          NOW,
THEREFORE, in consideration of the premises, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Landlord and Tenant hereby agree as follows:

          1.
Capitalized terms not defined in this Agreement shall have the meanings
ascribed to such terms under the Lease.

          2. The
First Additional Office Premises shall be deemed to be, and hereby is, added to
the demised premises under the Lease, for a term of years commencing on the
FAOP 

Commencement Date (as such term is defined in Article 3 of this
Agreement), and ending on January 31, 2030 (the “New Expiration Date”), unless
such term shall sooner terminate as in the Lease, as modified hereby, provided.
Except as otherwise set forth herein, the First Additional Office Premises
shall be leased to Tenant pursuant to all of the terms, covenants and
conditions of the Lease, as modified hereby. Landlord and Tenant agree that the
rentable square foot area of the First Additional Office Premises shall deemed
to be 101,736 rentable square feet, consisting of 52,574 rentable square feet
on the sixteenth (16th) floor (the “16th Floor Portion”)
and 49,162 rentable square feet on the seventeenth (17th) floor (the “17th Floor Portion”). The Existing
Demised Premises and the First Additional Office Premises are hereinafter
collectively called the “Expanded Demised Premises”. Unless the context
otherwise requires, all references in the Original Lease to the “demised
premises” shall be deemed to include the First Additional Office Premises,
after the FAOP Commencement Date.

          3. A. The
term “FAOP Commencement Date” when used in this Agreement shall mean the date
on which the last of the following shall have occurred: (i) Landlord delivers
vacant possession of the entire First Additional Office Premises to Tenant,
free of any occupancies or tenancies, in broom clean condition and free of any
construction debris, materials and equipment and otherwise in safe condition
for the performance of Tenant’s FAOP Initial Installation Work (as such term is
defined in Article 8C of this Agreement); and (ii) Landlord substantially
completes Landlord’s FAOP Work (as such term is defined in Article 8B of this
Agreement); provided, however, that in no event shall the FAOP Commencement
Date occur prior to April 1, 2012. Landlord shall give Tenant at least fifteen
(15) days’ prior written notice of the date Landlord will substantially
complete Landlord’s FAOP Work, and shall use commercially reasonable efforts to
cause the FAOP Commencement Date to occur on April 1, 2011.

                    B.
Landlord’s FAOP Work shall be deemed to have been substantially completed
despite the fact that minor insubstantial details of construction and
mechanical adjustments (i.e., “punch list items”) remain to be completed,
provided the First Additional Office Premises are accessible and reasonably
usable by Tenant for the purpose of effecting Tenant’s FAOP Initial
Installation Work; and provided, further, that the Building Systems (as such
term is defined in Article 8C(ii) of this Agreement) through which any services
which are required to be provided by Landlord to the First Additional Office
Premises under the Lease, as modified hereby, are also available in the First
Additional Office Premises (or in locations outside of the First Additional
Office Premises, if so provided under the Lease, as modified hereby) and
capable of providing the services that they are designed to provide, so that,
upon completion of such Tenant’s FAOP Initial Installation Work (or upon
completion of certain temporary or interim work by Tenant which is necessary to
provide electricity and/or chilled water service to the First Additional Office
Premises during the construction period), such services can be provided by
Landlord as required hereunder. Landlord shall, subject to the terms, covenants
and conditions of Article 24 of this Agreement, nevertheless perform all work
(“Landlord’s Punch List Work”) required in order to complete such punch list
items within thirty (30) days of the FAOP Commencement Date.

                    C.
Landlord shall, in accordance with the foregoing, fix the FAOP Commencement
Date and notify Tenant of the date so fixed. When the FAOP Commencement 

2

Date has so been determined, the parties hereto shall, within thirty
(30) days thereafter, at the request of either Landlord or Tenant, execute a
written agreement confirming such date as the FAOP Commencement Date. Any
failure of the parties to execute such written agreement shall not affect the
validity of the FAOP Commencement Date as fixed and determined by Landlord, as
aforesaid. Any dispute regarding the occurrence of the FAOP Commencement Date
shall be resolved by arbitration in accordance with the provisions of Article
41 of the Original Lease, as modified hereby.

                    D.
Tenant by entering into occupancy of the First Additional Office
Premises shall be conclusively deemed to have agreed that Landlord had
substantially completed Landlord’s FAOP Work, unless within twenty (20) days
after the date of such occupancy Tenant shall give written notice (hereinafter
called the “FAOP Punch List
Notice”) to Landlord specifying the respects in which the same were not in
satisfactory condition. The giving of the FAOP Punch List Notice shall have no
effect whatsoever upon the FAOP Commencement Date.

                    E.
In connection with the occurrence of the FAOP Commencement Date,
it is acknowledged as follows: that a portion of the First Additional Office
Premises (i.e., the 16th Floor Portion) is currently leased to
another tenant (the “FAOP Existing Tenant”), pursuant to a certain lease with
Landlord, the term of which is scheduled to expire on July 31, 2012 (the “FAOP
Existing Lease”); that the FAOP Existing Tenant has already vacated the First
Additional Office Premises, notwithstanding the fact that the term of such
lease has not yet expired; and that Landlord and Tenant are currently
negotiating regarding the execution and delivery of a certain lease
cancellation agreement (the “FAOP Existing Lease Cancellation Agreement”),
pursuant to which the term of the FAOP Existing Lease is cancelled effective on
or about July 1, 2011. Landlord shall use commercially reasonable efforts to
cause the FAOP Existing Tenant to execute and deliver the FAOP Existing Lease
Cancellation Agreement as expeditiously as reasonably possible. However, except
as otherwise set forth in Article 3F of this Agreement, Landlord shall have no
liability to Tenant whatsoever if, despite the exercise of such commercially
reasonable efforts by Landlord, the FAOP Commencement Date shall be delayed as
a result of the FAOP Existing Tenant failing or refusing to execute and deliver
the FAOP Existing Lease Cancellation Agreement. Landlord shall (i) keep Tenant
reasonably informed from time to time, on Tenant’s request, as to the status of
Landlord’s negotiation with the FAOP Existing Tenant concerning the FAOP Lease
Cancellation Agreement; and (ii) promptly notify Tenant when Landlord and the
FAOP Existing Tenant have executed and delivered the FAOP Existing Lease
Cancellation Agreement. In the event that Landlord and the FAOP Existing Tenant
fail to enter into the FAOP Existing Lease Cancellation Agreement on or before
July 31, 2012, and if the FAOP Existing Tenant holds over in the First
Additional Office Premises after such date, then Landlord, if necessary, shall
promptly commence summary proceedings to cause the FAOP Existing Tenant to
vacate such space.

                    F.
(i) If Landlord fails to cause the FAOP Commencement Date to
occur on April 1, 2012 (the “First FAOP Outside Date”), then, notwithstanding
anything contained hereinabove to the contrary, the FAOP Rent Commencement Date
(as such term is defined in Article 4A of this Agreement) shall be extended by
one (1) day for each day after the First FAOP Outside Date that Landlord fails
to cause the FAOP Commencement Date to occur; provided, however, that if
Landlord fails to cause the FAOP Commencement Date to occur on or before

3

the Self Help FAOP Outside Date (as such term is defined in Article
3F(ii) of this Agreement), then, notwithstanding anything contained hereinabove
to the contrary, the FAOP Rent Commencement Date shall be extended by two (2)
days for each day after the FAOP Self Help FAOP Outside Date that Landlord
fails cause the FAOP Commencement Date to occur. 

                              (ii)
If Landlord fails to cause the FAOP Commencement Date to occur on
or before June 1, 2012 (the “Self Help FAOP Outside Date”), then, Tenant
(without any obligation to do so) may give Landlord written notice (“Tenant’s
FAOP Self Help Notice”) that, unless Landlord causes the FAOP Commencement Date
to occur within ten (10) days after such notice shall have been given, Tenant
intends to perform any and all work necessary to complete Landlord’s FAOP Work
and/or otherwise cause the FAOP Commencement Date to occur. Any such work by
Tenant shall be performed in accordance with all applicable laws, rules and regulations
and all applicable provisions of the Lease, as modified hereby, other than any
such provisions requiring Landlord’s prior approval with respect to any
alterations by Tenant. Tenant agrees that Tenant’s FAOP Self Help Notice shall
specify (in bold face type and capital letters) that in the event Landlord does
not cause the FAOP Commencement Date to occur within such ten (10) day period,
then Tenant may exercise its “self-help” rights under this subparagraph (ii).
Tenant shall provide Landlord with reasonable written proof of the
out-of-pocket costs incurred by Tenant in connection with the work performed by
Tenant pursuant to this subparagraph (ii), and Landlord shall reimburse Tenant
for such costs within thirty (30) days after Landlord’s receipt of such proof.
In the event that Landlord fails to reimburse Tenant all or any part of such
costs within such thirty (30) day period, then Tenant shall be entitled to a
rent credit (i.e., Tenant may offset the amount of such reimbursement due
Tenant against rent) in the amount of the portion of such reimbursement that
Landlord has failed to pay Tenant (within such thirty (30) day period), with
interest at the Applicable Rate from the date such sums were to have been
reimbursed or paid to Tenant until the date recovered in full by Tenant. Such
rent credit shall be applied, until fully depleted, against the next fixed
annual rent payable under the Lease, as modified hereby. If Tenant shall
exercise its self-help rights under this subparagraph (ii), then (1) any extension
of the FAOP Rent Commencement Date to which Tenant is then entitled under
subparagraph (i) above shall only continue until the earlier to occur of (x)
the date that Tenant substantially completes Landlord’s FAOP Work or (y) the
date (as the same may be extended by any of the causes set forth in Article
22A(i) of the Original Lease) on which Tenant, using commercially reasonable
efforts to complete Landlord’s FAOP Work, should have completed such work, and
(2) Tenant shall no longer have the right to terminate this Agreement pursuant
to subparagraph (iii) below.

                              (iii)
If Landlord fails to cause the FAOP Commencement Date to occur on
or before August 1, 2012 (the “Second FAOP Outside Date”), and Tenant shall not
have elected to use self-help pursuant to subparagraph (ii) above, then,
notwithstanding anything contained hereinabove to the contrary, Tenant may
elect by written notice given to Landlord at any time after the Second FAOP
Outside Date to terminate this Agreement, and unless Landlord causes the FAOP
Commencement Date to occur within ten (10) days after Tenant gives such notice
to Landlord, then this Agreement shall be deemed terminated and the parties
shall have no further obligations or liabilities to each other hereunder,
except those expressly stated to survive the expiration or earlier termination
of this Agreement (but the Lease shall remain in full force and effect in
accordance with its terms).

4

                              (iv)
Notwithstanding the foregoing, the First FAOP Outside Date, the Self Help FAOP
Outside Date and the Second FAOP Outside Date shall each be extended, for no
more than thirty (30) days in the aggregate, by one day for each day that the
performance of Landlord’s FAOP Work is delayed as a result of any of the causes
set forth in Article 22A(i) of the Original Lease, other than Landlord’s
failure to enter into the FAOP Existing Lease Cancellation Agreement or the
holding over by the FAOP Existing Tenant in the premises demised under the FAOP
Existing Lease.

          4. A. (i)
Tenant shall pay Landlord fixed annual rent for the First Additional Office
Premises, commencing on the FAOP Rent Commencement Date, and otherwise in
accordance with Article 2A of the Lease, except that such fixed annual rent
shall be payable at the following rates:

	
  

 	
  

 
	
  

 	
 $4,272,912.00 per annum ($356,076.00 per month) from the FAOP Rent
 Commencement Date through the last day of the fifth FAOP Lease Year (as such
 term is defined in Article 4B of this Agreement);

 
	
  

 	
  

 
	
  

 	
 $4,679,856.00 per annum ($389,988.00 per month) from the first day of
 the sixth FAOP Lease Year through the last day of the tenth FAOP Lease Year;
 and

 
	
  

 	
  

 
	
  

 	
 $5,086,800.00 per annum ($423,900.00 per month) from the first day of
 the eleventh FAOP Lease Year through the New Expiration Date.

 

Should the FAOP Rent Commencement Date occur on any day other than the
first day of a month, then the fixed annual rent for the unexpired portion of
such month shall be adjusted and prorated on a per diem basis
based on the actual number of days in said month.

                              (ii)
The term “FAOP Rent Commencement Date” when used in this Agreement shall mean
the date which is twelve (12) months after the FAOP Commencement Date, as such
date may be extended pursuant to Article 3F(i) of this Agreement.

                    B.
The term “FAOP Lease Year” when used in this Agreement shall mean the twelve
(12) months commencing on the FAOP Rent Commencement Date (or if the FAOP Rent
Commencement Date is not the first day of a month, the first day of the month
following the month in which occurs the FAOP Rent Commencement Date) and each
subsequent period of twelve (12) months. The first FAOP Lease Year shall
include the period, if any, from the FAOP Rent Commencement Date to the end of
the month in which the FAOP Rent Commencement Date occurs.

          5. Tenant
shall pay Landlord operating expense escalation additional rent for the First
Additional Office Premises, in accordance with Article 2B of the Original
Lease, except that the term “Base Year” shall mean the twelve (12) month period
commencing on April 1, 2012 and ending March 31, 2013; the term “The
Percentage” shall mean 3.7395 percent (3.7395%); and the term “comparative
year” shall mean the twelve (12) month period commencing April 1, 2013 and
ending March 31, 2014, and each twelve (12) month period thereafter, in which
occurs any part of the term of this Lease, as modified hereby, with respect to 

5

the First Additional Office Premises; provided, however, that in the
event that the FAOP Commencement Date shall not occur by or before April 1,
2012, then the “Base Year” shall mean the twelve (12) month period commencing
on the FAOP Commencement Date, and the “comparative year” shall mean the twelve
(12) month period immediately following such Base Year, and each twelve (12)
month period thereafter, in which occurs any part of the term of the Lease, as
modified hereby, with respect to the First Additional Office Premises;
provided, further, that if the FAOP Commencement Date does not occur on the
first day of a month, then the “Base Year” shall mean as follows: (i) the
twelve (12) month period beginning on the first day of the month in which the
FAOP Commencement Date occurs, if the FAOP Commencement Date occurs on or before
the fifteenth day of such month, or (ii) the twelve (12) month period beginning
on the first day of the month following the month in which the FAOP
Commencement Date occurs, if the FAOP Commencement Date occurs after the
fifteenth day of the month in which such date occurs; and the “comparative
year” shall mean the twelve (12) month period immediately following such Base
Year, and each twelve (12) month period thereafter, in which occurs any part of
the term of the Lease, as modified hereby, with respect to the First Additional
Office Premises (subject, however, to the provisions of Article 2G of the
Original Lease with respect to any partial comparative year in which the FAOP
Commencement Date or the scheduled expiration date or sooner termination of the
term of the Lease, as modified hereby, occurs). The rent credit set forth in
the last sentence of Article 2B(ii) of the Original Lease shall not be
applicable to the First Additional Office Premises.

          6. Tenant
shall pay Landlord real estate tax escalation additional rent for the First
Additional Office Premises, in accordance with Article 2C of the Original
Lease, except that the term “base tax year” shall mean the New York City real
estate tax year commencing July 1, 2012 and ending June 30, 2013; the term “The
Percentage” shall mean 3.7395 percent (3.7395%); and the term “comparative
year” shall mean the New York City real estate tax year commencing July 1, 2013
and ending June 30, 2014, and each subsequent period of twelve (12) months (or
such other period of twelve (12) months occurring during the term of the Lease,
as modified hereby, as hereafter may be duly adopted as the tax year for real
estate tax purposes by the City of New York). The rent credit set forth in the
last sentence of Article 2C(ii)(a) of the Original Lease shall not be
applicable to the First Additional Office Premises. However, notwithstanding
the foregoing, if the FAOP Commencement Date shall not occur until after April
1, 2012, then Tenant shall be entitled to a rent credit in the amount of all
real estate tax escalation additional rent due under the Lease, as modified
hereby, with respect to the First Additional Office Premises for the period
from July 1, 2013 through the date which is fifteen (15) months after the FAOP
Commencement Date; and provided, further that if the FAOP Commencement Date
shall not occur by or before December 31, 2012, then the “base tax year” for
the First Additional Office Premises shall be the calendar year 2013, and the
comparative year for such space shall be the calendar year 2014 and each
subsequent period of twelve (12) months in which occurs any part of the term of
the Lease, as modified hereby, with respect to such space.

          7.
Landlord shall redistribute and furnish electricity to Tenant for
the First Additional Office Premises, on a submetering basis, in accordance
with the provisions of Article 3 of the Original Lease, except as follows:

6

                    A.
Landlord shall perform such work (“Landlord’s Submetering Work”)
as is necessary to furnish redistributed electricity to the First Additional
Office Premises on a submetering basis. Such work shall include, without
limitation, the installation of a submeter or submeters and the connection of
such submeter or submeters to the electrical panels for the First Additional
Office Premises (it being acknowledged and agreed, however, that such work that
is necessary to connect the submeter(s) to such electrical panels may not be
performed by Landlord unless and until Tenant performs such work as is
necessary to connect Tenant’s local electrical distribution to such panels
(“Tenant’s Electrical Panel Work”)). Landlord shall perform Landlord’s
Submetering Work at its sole cost and expense, except that Tenant shall
reimburse Landlord for the cost of connecting more than a total of twenty-four
(24) electrical panels to such submeter or submeters, which sums shall be
deemed additional rent under the Lease, as modified hereby, and due within
thirty (30) days after demand. Landlord shall, subject to the terms, covenants
and conditions of Article 24 of this Agreement, complete Landlord’s Submetering
Work within thirty (30) days after Landlord receives notice from Tenant that
Tenant has completed Tenant’s Electrical Panel Work (and Tenant has in fact
completed such work). If Landlord’s Submetering Work has not been completed by
the FAOP Commencement Date (so that Landlord may not yet furnish electricity to
the First Additional Office Premises on a submetering basis), then Tenant shall
pay, for the distribution of electric power and use of Landlord’s facilities to
provide electrical power to the First Additional Office Premises, a charge
equal to the amount that results from (i) multiplying $1.25 by the number of
rentable square feet within the First Additional Office Premises (i.e.,
101,736), (ii) dividing the result of (i) by 360, and then (iii) multiplying
the result of (ii) by the number of days, if any, until the appropriate
submeter(s) are installed and are properly functioning; provided, however, that
if Landlord’s Submetering Work has not been completed by the date that Tenant
occupies all or any part of the First Additional Office Premises for the
conduct of its business as a result of the failure of Tenant to complete
Tenant’s Electrical Panel Work or any other act or omission of Tenant, its
agents, employees or contractors that actually delays the completion of
Landlord’s Submetering Work, then the foregoing charge shall be changed as
follows: the reference to “$1.25” shall be changed to “$3.45”, effective as of
such date that Tenant occupies all or any part of the First Additional Office
Premises for the conduct of its business.

                    B. The electrical capacity
which Landlord shall be obligated to provide to the First Additional Office
Premises, for all purposes other than any Building air-conditioning systems and
equipment and any other Building Systems servicing the First Additional Office
Premises, shall be the FAOP Electrical Capacity, as hereinafter defined (and
not the 6 watts per rentable square foot of demand load described in Article
3C(ii) of the Original Lease). The term “FAOP Electrical Capacity” when used
herein, initially, shall mean the electrical capacity which is currently
available in the First Additional Office Premises for Tenant’s use (for all
purposes other than such Building air-conditioning equipment and Building
Systems) as of the date of this Agreement; provided, however, that if at any
time after the date of this Agreement Tenant shall provide Landlord with a
“load letter” from Tenant’s engineer or from a reputable electrical consultant
which substantiates (to the reasonable satisfaction of Landlord) Tenant’s need
for any additional electrical capacity for its operations in the First
Additional Office Premises, then Landlord, at Landlord’s sole cost and expense,
and subject to the terms, covenants and conditions of Article 24 of this
Agreement, shall perform all such work (collectively, “Landlord’s Additional
Electrical Capacity Work”) as is necessary to provide such additional

7

electrical capacity to the First Additional Office Premises (at the
existing electrical panels or then existing electrical busways located on each
applicable floor, as determined by Landlord) and the “FAOP Electrical Capacity”
shall be the total of such increased electrical capacity which is then
available to the First Additional Office Premises, provided that in no event
shall the FAOP Electrical Capacity ever exceed six (6) watts per usable square
foot of demand load (based on a usable square foot area of 76,959 square feet).
Subject to the terms, covenants and conditions of Article 14 of this Agreement,
Tenant agrees that such additional electrical capacity may be obtained from any
excess capacity then available in the Original Demised Premises.

          8. A.
Tenant expressly acknowledges that it has inspected the First Additional Office
Premises and agrees to accept the First Additional Office Premises broom clean
but otherwise in their “as is” condition, subject to Landlord’s obligation to
perform Landlord’s FAOP Work pursuant to Article 8B of this Agreement. Tenant
acknowledges that Landlord (i) has made no representation respecting the
physical condition of the First Additional Office Premises and (ii) shall have
no obligation to do any work in and to the First Additional Office Premises in
order to make them suitable and ready for occupancy and use by Tenant, except
as otherwise specifically provided in this Article.

                    B.
Landlord, at its expense, shall perform the following work
(“Landlord’s FAOP Work”) in order to prepare the First Additional Office
Premises for Tenant’s use and occupancy and as a condition precedent to the
FAOP Commencement Date (except for the work set forth in the second sentence of
subparagraph (ii) below, which work, if necessary, will not occur until after
the FAOP Commencement Date):

                              (i)
Landlord shall perform demolition work in the First Additional
Office Premises, including removal of ceiling, ductwork (except for duct work
which services other space in the Building), lighting and flooring, so as to
create a “slab to slab” condition in the First Additional Office Premises.

                              (ii)
Landlord shall perform all work necessary to remove all asbestos
from the First Additional Office Premises (other than shafts that run through
the core of the Building), and will obtain and provide to Tenant a duplicate
original counterpart of a Form ACP-5 and/or ACP-7 (as appropriate) for the First
Additional Office Premises. If during the performance of Tenant’s FAOP Initial
Installation Work, Tenant discovers any asbestos containing materials within
the First Additional Office Premises (a) that is required by law to be removed
in connection with such work or (b) that is located within the shafts that run
through the First Additional Office Premises (excluding the core of the
Building, other than piping and duct work required for tie-ins or connections,
which shall be abated as herein provided), then Landlord shall promptly remove
such asbestos containing materials at Landlord’s sole cost and expense. All
work required to be performed by Landlord pursuant to the subparagraph (ii) is
hereinafter referred to, collectively, as “Landlord’s Asbestos Removal Work.”
If Landlord is required to perform Landlord’s Asbestos Removal Work pursuant to
this subparagraph (ii) at any time after the occurrence of the FAOP
Commencement Date but before the occurrence of the FAOP Rent Commencement Date,
then, notwithstanding anything contained hereinabove to the contrary, the FAOP
Rent Commencement Date shall be extended on a day-for-day basis for each day
Landlord is performing such work and such performance actually delays the
completion of Tenant’s FAOP Initial Installation Work; it being understood and
agreed, however, that if Tenant 

8

is entitled to such an extension of the FAOP Rent Commencement Date,
the same shall continue until Landlord has completed Landlord’s Asbestos
Removal Work (including, without limitation, obtaining any sign-offs or
approvals that are required for Tenant to legally use the First Additional
Office Premises) and has vacated the First Additional Office Premises. If
Landlord is required to perform Landlord’s Asbestos Removal Work pursuant to this
subparagraph (ii) after the occurrence of the FAOP Rent Commencement Date,
then, notwithstanding anything contained hereinabove to the contrary, all fixed
annual rent, operating expense escalation additional rent and real estate tax
escalation additional rent attributable to the portion of the First Additional
Office Premises that Tenant is unable to use or occupy during the performance
of such work by Landlord shall be equitably and proportionately abated until
Landlord has completed Landlord’s Asbestos Removal Work (including, without
limitation, obtaining any sign-offs or approvals that are required for Tenant
to legally use the First Additional Office Premises) and has vacated the First
Additional Office Premises.

                              (iii)
Landlord shall flash patch the floors of the First Additional
Office Premises where necessary and perform all work necessary to cause the
floors to be reasonably smooth and reasonably flat in accordance with industry
standards.

                              (iv)
Landlord shall perform all work necessary to provide Tenant with adequate
points of connection to the Building’s Class E fire alarm system, but in no
event fewer than (x) ten (10) such points in a location or locations on the
16th Floor Portion and (y) ten (10) such points in a location or locations on
the 17th Floor Portion, so that Tenant may connect the fire alarm system for
the First Additional Office Premises to such Building System. Any
modifications, upgrades, additional panels, devices or equipment shall be
furnished and installed by Tenant.

                              (v)
Landlord shall effect all work necessary to provide a stand pipe connection to
the Building’s sprinkler system, in a location designated by Landlord on each
of the 16th Floor Portion and the 17th Floor Portion, so that Tenant may
provide sprinkler service in the First Additional Office Premises. Tenant, as
part of Tenant’s FAOP Initial Installation Work, shall effect all work
necessary to distribute such sprinkler service throughout the First Additional
Office Premises.

                              (vi)
Landlord shall install fireproofing and stopping at all locations required by
code and perform all other work in and to the First Additional Office Premises
so that such space may be delivered by Landlord to Tenant in compliance with
all applicable laws, rules and regulations and free of any violations of
record.

                              (vii)
Landlord shall (a) install new, Building standard radiator convector covers and
grills so that the same are primed and ready for painting and (b) perform all
work necessary to cause the existing radiators in the First Additional Office
Premises to be in good working order.

                              (viii)
Landlord shall effect all work necessary to cause the elevator call buttons,
lanterns, doors (including the hardware thereon) and service closets in the
First Additional Office Premises or which service the First Additional Office
Premises (whether or not in the First Additional Office Premises) to comply
with the requirements of the ADA.

9

                              (ix)
Landlord shall perform all work necessary to provide to Tenant the existing
electric closets located on each of the 16th Floor Portion and the 17th Floor Portion
stripped with main feeds in place.

                              (x)
Landlord shall install new, Building standard radiator valves which are
compatible with the Building’s direct digital control system.

Landlord shall perform Landlord’s FAOP Work in a good and workerlike
manner, and in a prompt and expeditious fashion after this Agreement has been
executed and delivered by Landlord and Tenant.

                    C. (i) Tenant, at its expense (except as
provided in subparagraph (iii) below), shall perform all other work (“Tenant’s
FAOP Initial Installation Work”) in and to the First Additional Office Premises
as is necessary for Tenant to conduct its business therein, and in order to
make such space suitable and ready for Tenant’s initial occupancy and use.
Tenant shall perform Tenant’s FAOP Initial Installation Work in a prompt and
expeditious manner following the FAOP Commencement Date, in accordance with the
provisions of Article 8 of the Original Lease, this Article and all other
applicable provisions of the Lease, as modified hereby, and in compliance with
all applicable laws, rules and regulations.

                              (ii)
Tenant shall submit to Landlord for Landlord’s approval, which approval shall
not be unreasonably withheld, conditioned or delayed with respect to
nonstructural interior alterations which do not adversely affect the proper
functioning of utility services, plumbing and electrical lines or other systems
of the Building (collectively, “Building Systems”), a full set of architectural
and engineering plans and specifications (including architectural plans and
specifications comprised of partition plans, reflected ceiling plans as well as
air conditioning, heating and all other mechanical drawings and electric plans)
in form suitable for filing with the appropriate agencies of the City of New
York to obtain such alteration or building permit to perform Tenant’s FAOP
Initial Installation Work. If Landlord withholds its approval of the plans and
specifications (in accordance with the foregoing), Landlord shall specify in
reasonable detail the basis for withholding such approval and Tenant shall make
appropriate modifications to the plans and specifications to correct or
eliminate the objections specified by Landlord in such disapproval and shall
resubmit the modified plans and specifications to Landlord within a reasonable
period of time after they are returned to Tenant unapproved. If Landlord fails
to respond to any such request for approval within ten (10) days after such plans
and specifications shall have been given to Landlord, Tenant may send Landlord
a second request for approval of such plans and specifications. If Landlord
fails to respond to such second request for approval within five (5) Business
Days after the same shall have been given to Landlord, then Landlord shall be
deemed to have approved such plans and specifications (provided such second
request specifies in bold face type and capital letters that Landlord shall be
deemed to have approved such plans and specifications if it fails to respond to
such second request within such five (5) Business Day period). The terms and
provisions set forth in this subparagraph (ii) governing the approval and
disapproval of plans and specifications shall apply equally to approving and
disapproving revised plans and specifications and all change orders. No work
may be performed without Landlord’s prior approval of the plans and
specifications and all contractors and sub-contractors engaged to perform
Tenant’s FAOP Initial Installation Work. No such work shall be commenced
without the plans and specifications 

10

therefor having been approved by Landlord and the appropriate permits
and approvals therefor having been issued by the City of New York Department of
Buildings and any other governmental agency having jurisdiction thereof.
Approval by Landlord of any plans or specifications shall not be deemed to
constitute a warranty or representation that such plans or specifications shall
conform to applicable laws and regulations or shall be approved by the
Department of Buildings or any other governmental agency. At Tenant’s request,
Landlord shall execute all required permit applications and other forms upon
submission of Tenant’s plans and specifications by Tenant but prior to Landlord’s
review of same, but execution of such forms by Landlord shall not constitute
approval of the alterations in question.

                              (iii)
Landlord shall provide Tenant an allowance of up to $6,980,688.00 to defray the
cost of construction of any Tenant’s FAOP Initial Installation Work which is
performed prior to the fourth anniversary of the FAOP Commencement Date. Such
sum (“Landlord’s FAOP Contribution”) shall be payable (as hereinafter provided)
against requisitions therefor accompanied by (a) the certification by Tenant’s
architect that the work described on such requisition has been completed
substantially in accordance with the plans and specifications theretofor
approved (or deemed approved) by Landlord, (b) a list specifying the work
performed for which such requisition is being submitted and (c) partial
conditional waivers of mechanics liens for all work for which such installment
of Landlord’s FAOP Contribution has been requisitioned, and partial
unconditional waivers of mechanics liens for all work for which payments were
made by Landlord with respect to previous requisitions, from each contractor,
sub-contractor, vendor and supplier of labor and materials for whom and to the
extent such installment of Landlord’s FAOP Contribution is being requisitioned;
it being agreed, however, that Tenant shall not be required to submit such lien
waivers for (x) any such contractor or sub-contractor performing work the cost
of which shall be less than $10,000.00, or (y) for any such vendor or supplier
providing materials the cost of which (in the aggregate for the entire job, and
not for such installment) shall be less than $250,000.00. Payments on account
of Landlord’s FAOP Contribution shall not be payable more frequently than
monthly. Each such installment of Landlord’s FAOP Contribution shall be equal
to (1) the total amount of Landlord’s FAOP Contribution requisitioned by Tenant
as of the date of the most recent requisition (including the amount of the most
recent requisition), less (2) the total amount of Landlord’s FAOP Contribution
paid to Tenant as of the date the most recent requisition. To illustrate such
calculation, and assuming, for example, that the total of all requisitions
submitted by Tenant (including the most recent requisition) is $100,000, of
which $60,000 has been paid to Tenant, and $40,000 is the unpaid amount of the
most recent requisition, then the amount of such installment shall be $40,000,
calculated as follows: (1) $100,000, less (2) $60,000, equals $40,000. Notwithstanding
anything contained herein to the contrary, no portion of Landlord’s FAOP
Contribution shall be applied by Tenant against expenses for furniture, office
equipment or other personal property, and not more than $1,047,103.20 may be
applied by Tenant for architectural and engineering fees or other soft costs
relating to Tenant’s FAOP Initial Installation Work (which payments of
Landlord’s FAOP Contribution for such architectural and engineering fees and
other soft costs shall be made by Landlord upon Tenant’s submission of invoices
therefor (whether before or after the FAOP Commencement Date) which have been
approved for payment by an officer of Tenant, anything contained herein to the
contrary notwithstanding). Any dispute regarding Landlord’s FAOP Contribution
shall be resolved by expedited arbitration in accordance with the provisions of
Article 41 of the Original Lease. In 

11

the event that any such dispute shall be resolved in Tenant’s favor, so
that Landlord shall be obligated to pay Tenant all or any part of Landlord’s
FAOP Contribution, but Landlord fails to do so within fifteen (15) days after
such decision is rendered in such arbitration proceeding, then Tenant shall be
entitled to a rent credit (i.e., Tenant may offset such amount due Tenant against
rent) in the amount of the portion of Landlord’s FAOP Contribution which
Landlord has failed to pay Tenant (within such fifteen (15) day period) in
accordance with the decision in such arbitration proceeding, with interest at
the Applicable Rate from the date such sums were to have been reimbursed or
paid to Tenant from Landlord’s FAOP Contribution until the date recovered in
full by Tenant, and with all reasonable legal fees incurred by Tenant in
connection with such dispute (provided Tenant furnishes Landlord with paid
invoices or other reasonably sufficient evidence of such fees). Such rent
credit shall be applied, until fully depleted, against the next fixed annual
rent payable under the Lease, as modified hereby. As an inducement to Tenant to
execute and deliver this Agreement, Landlord shall deposit in escrow with
Landlord’s attorneys, David J. Bleckner, P.C. (“Escrowee”), concurrently with
the execution and delivery of this Agreement by Landlord and Tenant, the sum of
$6,980,688.00 to be held by Escrowee as security for the payment of Landlord’s
FAOP Contribution to Tenant, in accordance with the terms, covenants and
conditions of that certain letter agreement of even date herewith among
Landlord, Tenant and Escrowee, a copy of which is attached hereto and made a
part hereof as Exhibit E.

                              (iv)
The installation or connection to the Building systems of each
item of Tenant’s property and systems shall be performed at Tenant’s expense
(subject to subparagraph (iii) above) and, unless otherwise provided in the
Lease, as modified hereby, by Tenant using contractors approved by Landlord in
accordance with the applicable provisions of the Lease, as modified hereby.

                              (v)
Notwithstanding anything contained herein to the contrary, Tenant
shall maintain, at Tenant’s expense, in addition to any other insurance
required pursuant to the Lease, as modified hereby, with respect to
alterations, a Builders “All Risk” insurance
policy (Broad Form) covering the full replacement cost of Landlord’s FAOP Work
and Tenant’s FAOP Initial Installation Work and the materials and supplies
delivered and stored in the First Additional Office Premises for the purpose of
being incorporated in such work.

                              (vi)
Notwithstanding anything contained herein to the contrary, Tenant
shall deliver to the Landlord final record drawings of Tenant’s FAOP Initial
Installation Work, including, as may be pertinent to the work performed, a
reflected ceiling plan, mechanical and electrical drawings, partition plan and
any other drawings which may be required to indicate accurately the layout and
systems of the First Additional Office Premises. Tenant shall require its
architect to load and maintain such record plans on a CADD system and to
deliver diskettes or other medium suitable for Landlord’s needs and compatible,
if feasible, with Landlord’s computer applications, so as to enable Landlord to
use such CADD-saved plans.

                              (vii)
Landlord shall, at the request of Tenant, schedule the Building’s
freight elevator (or a passenger elevator converted for use as a freight
elevator) for Tenant’s move into the First Additional Office Premises, after
6:00 p.m. and before 7:00 a.m. on Business Days (and at any time on weekends).
Such use shall be subject to a prior reservation by another 

12

tenant and/or the need by Landlord for the use of such elevator for
other operating or construction purposes. Notwithstanding anything contained in
the Lease, as modified hereby, to the contrary, in connection with Tenant’s
FAOP Initial Installation Work and initial move-in to the First Additional
Office Premises, it is agreed that Tenant shall not be required to pay for the
first eighty (80) hours of such freight elevator use on an after-hours basis.
Any other after-hours use of the freight elevator by Tenant shall be subject to
the applicable provisions of the Lease, including, without limitation,
Landlord’s standard charges therefor.

                              (viii)
Tenant agrees that Tenant’s FAOP Initial Installation Work shall include,
without limitation, all work necessary to tie all HVAC controls for the First
Additional Office Premises into the Building’s direct digital control system.

                    D.
It is acknowledged and agreed that Tenant, at its expense (except as
hereinabove provided) and as part of Tenant’s FAOP Initial Installation Work,
shall provide, and shall effect all work (the “Tenant’s FAOP A/C Work”)
necessary to install, new chilled water cooled air-conditioning units for the
First Additional Office Premises (the “FAOP A/C Units”), with a total cooling
capacity of 120 tons for each of the 16th Floor Portion and the 17th Floor Portion (for a total
cooling capacity in the First Additional Office Premises of 240 tons), each of
which units shall be of equal or better quality to the current Building
standard air-conditioning unit, the York Floor Mounted Model Solution XTI.
Tenant’s FAOP A/C Work shall include, without limitation, (i) the connection of
the FAOP A/C Units to the Building Chilled Water and Warm Water Circulating
System, and (ii) all work necessary to install all associated duct work, fans,
diffusers and other equipment necessary to distribute air-conditioning service
throughout the First Additional Office Premises from the FAOP A/C Units.

                    E.
It is acknowledged and agreed that Tenant, at its expense (except as
hereinabove provided) and as part of Tenant’s FAOP Initial Installation Work,
shall effect all work (the “FAOP Bathroom Renovation Work”) necessary to
renovate and refurbish all of the existing core bathrooms in each of the 16th
Floor Portion and the 17th Floor Portion, so that the condition of,
and quality of installation in, all such bathrooms shall be at least equivalent
to the condition of, and quality of installation in, the core bathrooms located
in 14th floor portion of the Original Demised Premises as of the date of this
Agreement.

                    F.
Reference is hereby made to the Environmental Design Guidelines set forth in
Exhibit B attached hereto and made a part hereof, which include certain
materials and/or items of work required in order to obtain LEED-CI designation
with respect to an office space construction project (it being understood and
agreed, however, that the intent of the Environmental Design Guidelines is to
optimize performance of the First Additional Office Premises, not just to
obtain LEED-CI designation). Notwithstanding anything contained in the Lease,
as modified by this Agreement, to the contrary, Tenant shall (i) submit its
plans and specifications for Tenant’s FAOP Initial Installation Work to
Landlord’s project manager, Jones Lang LaSalle (“JLL”), concurrently with
Tenant’s submission of such plans and specifications to Landlord, and (ii)
incorporate into such plans and specifications as part of Tenant’s FAOP Initial
Installation Work such sustainability measures as are recommended by JLL to
Tenant (the “Recommended Sustainability Measures”); provided, however, that (a)
the Recommended Sustainability Measures shall be limited solely to the items
set forth in said Exhibit B, and JLL 

13

shall designate such Recommended Sustainability Measures to Tenant in
reasonable detail and within the same time periods applicable to Landlord with
respect to Tenant’s request for Landlord’s approval of such plans and
specifications (as such time periods are more particularly set forth in Article
8C(ii) of this Agreement); (b) with respect to items A1, A2 and A4 of the
Environmental Design Guidelines, JLL demonstrates, to the reasonable
satisfaction of Tenant and Tenant’s consultants, that such Recommended
Sustainability Measures will result in the payback to, or the recouping by,
Tenant of the cost thereof over a period of not more than five (5) years; (c)
in no event shall the Recommended Sustainability Measures materially delay the
performance of Tenant’s FAOP Initial Installation Work (as reasonably
determined by Tenant); and (d) in no event shall Tenant be required to perform
any structural alterations, alterations to any of the Building Systems or
alterations outside of the First Additional Office Premises, in connection with
the Recommended Sustainability Measures.

          9. Article
4 of the Lease shall be deemed to be, and hereby is, modified as follows:

                    A.
With respect to the First Additional Office Premises, the references in Article
4J(ii) of the Original Lease to “Tenant’s Initial Installation Work” shall mean
“Tenant’s FAOP Initial Installation Work”.

                    B.
Anything contained in said Article 4 of the Original Lease to the contrary
notwithstanding, the provisions of paragraphs B, C, E, J, M and N of said Article
4 shall not apply to, and Landlord’s consent shall not be required, with respect
to one or more sub-lettings to a third party, from time to time, of up to an
aggregate of 15,000 rentable square feet of the 15th Floor Portion referred to
in Article 4I of the Original Lease, provided that (i) Tenant shall give
Landlord at least fifteen (15) days’ prior written notice of any such
transaction, which notice shall include a copy of the executed sublease
agreement for any such transaction; (ii) the term of any such sublease
agreement shall not expire later than the last day of the tenth FAOP Lease
Year; (iii) any such subtenant shall be reputable and financially responsible;
(iv) Tenant shall not be in default under the Lease, as modified hereby, beyond
any applicable notice and/or cure period at the time Tenant enters into any
such sublease; and (v) any such transaction shall comply with the following
provisions of said Article 4: paragraph F (other than the references to
Landlord’s right of recapture and right to share in profits) and paragraph K
(and the following provisions of said Article 4 shall apply to any such
transaction: the fourth, sixth, seventh, eighth, ninth and tenth sentences of
paragraph A).

                    C.
The reference to the number “six (6)” in Article 4F(iii)(d) of the Original
Lease shall be changed to the number “twelve (12)”. Additionally, in no event
may any assignment or subletting be made which results in the occupancy of any
full floor included in the Expanded Demised Premises by more than three (3)
occupants (including Tenant).

          10. Article
31 of the Lease shall be deemed to be, and hereby is, modified with respect to
the First Additional Office Premises as follows:

                    A.
The third sentence of Article 31A(i) of the Original Lease shall be deemed to
be, and hereby is, modified so that Landlord shall furnish heat to the First
Additional Office Premises so as to provide for reasonably comfortable
occupancy thereof, for normal office use, 

14

during all Business Hours on all Business Days, during the cold season,
at no charge to Tenant. Air conditioning service shall be provided by the FAOP
A/C Units to be installed by Tenant, and Landlord shall provide Tenant with 240
tons per annum of chilled water from the Building Chilled Water and Warm Water
Circulating System in connection with the operation of such Units, at no charge
to Tenant during Business Hours. Such chilled water service shall be provided
to Tenant in accordance with the provisions of Article 24C of the Original
Lease and, for purposes of subparagraph (v) of Article 24C of the Original
Lease, Tenant acknowledges that it has been advised by Landlord that the
Expanded Demised Premises and all of the Option Space/ROFO Space are in the
same zone and Landlord agrees that such space will remain in the same zone
during the term of the Lease (as modified hereby).

                    B.
Article 31A(ii) of the Original Lease shall be deemed to be, and
hereby is, modified so that, if (i) the FAOP A/C Units to be installed by
Tenant shall provide a minimum of 240 tons of cooling capacity to the First
Additional Office Premises (with a minimum of 120 tons to the 16th Floor
Portion and 120 tons to the 17th Floor Portion), (ii) occupancy levels in the
First Additional Office Premises will not exceed one (1) person per one hundred
(100) square feet of rentable area (and such occupants are evenly distributed
throughout the First Additional Office Premises), (iii) the electrical load in
the First Additional Office Premises shall not exceed six (6) watts per usable
square foot on a demand load basis and (iv) Tenant shall at all times comply
with applicable and relevant Building regulations affecting the operation of
the FAOP A/C Units, then the FAOP A/C Units and the Building heating system
shall be capable of maintaining the following conditions: (i) a minimum average
indoor dry bulb temperature of not less than 68 degrees Fahrenheit, whenever
the outdoor dry-bulb temperature, during Business Hours, is lower than 65
degrees and not lower than 0 degrees Fahrenheit; and (ii) a minimum average
indoor dry-bulb temperature of no higher than 75 degrees Fahrenheit, whenever
the outdoor dry-bulb temperature, during Business Hours, is higher than 65
degrees and not higher than 95 degrees Fahrenheit, and the outdoor wet-bulb
temperature does not exceed 75 degrees Fahrenheit.

                    C.
Article 31 C of the Original Lease shall be deemed to be, and hereby is,
modified so that any Supplemental A/C Unit(s) to be installed by or on behalf
of Tenant in and for the First Additional Office Premises shall be a water
cooled unit (and not an air-cooled unit). Additionally, as a condition to the
installation of any such Supplemental A/C Unit(s) in and for the First
Additional Office Premises, Tenant shall provide Landlord with a letter from a
reputable HVAC consultant or Tenant’s engineer confirming that the installation
of such equipment is required or desired based on Tenant’s plans and
specifications for Tenant’s FAOP Initial Installation Work and Tenant’s
proposed business operations in the First Additional Office Premises. In the
event that Tenant provides such confirmation letter and thereafter installs any
such Supplemental A/C Unit(s) in and for the First Additional Office Premises,
then Landlord shall provide Tenant with up to 30 tons per annum of chilled water
from the Building Chilled Water and Warm Water Circulating System for the
operation of such unit(s) (which 30 tons of chilled water shall be in addition
to the 240 tons per annum of chilled water to be supplied by Landlord for the
FAOP A/C Units pursuant to paragraph A above). It is acknowledged and agreed by
Tenant that the use of such chilled water for any Supplemental A/C Unit(s) in
the First Additional Office Premises shall be subject to the following
limitations: (i) during Business Hours, it shall be used as chilled water
(which runs through a coil in such Supplemental A/C 

15

Unit(s)) in order to provide cooling in the First Additional Office
Premises; and (ii) outside of Business Hours, the chilled water shall be used
as if it were condenser water (which utilizes a compressor in such Supplemental
A/C Unit(s)) in order to provide cooling to the First Additional Office
Premises. Landlord, at Tenant’s expense, shall (a) modify one (1) of the
existing taps on the 16th Floor Portion and/or one of the existing
taps on the 17th Floor Portion in order to provide up to a total of
thirty (30) tons of additional chilled water service for any such Supplemental
A/C Unit(s) (it being acknowledged that there are currently two (2) taps on
each such floor, each with the capacity to provide sixty (60) tons of chilled
water service, as required for the operation of the FAOP A/C Units), and (b) a
BTU submeter(s) to measure Tenant’s actual consumption of such chilled water.
Tenant shall reimburse Landlord for any and all actual out-of-pocket costs
incurred by Landlord in connection with the modification of such taps and the
purchase and installation of such BTU submeter(s), which costs shall be deemed
additional rent under the Lease, as modified hereby, and due within thirty (30)
days after demand, accompanied by documentation reasonably supporting such
costs. Tenant shall pay Landlord a charge in the amount of $2,000 per ton per
annum (“Landlord’s Annual Supplemental Chilled Water Charge”) for chilled water
used in connection with any Supplemental A/C Unit(s) in the First Additional
Office Premises, as measured by such BTU submeter(s), which Landlord’s Annual
Supplemental Chilled Water Charge shall be subject to adjustment as hereinafter
provided, and shall be deemed additional rent under the Lease, as modified
hereby, and due within thirty (30) days after demand. Except as otherwise
provided above, there shall be no tap-in fees or charges associated with
accessing the Building’s Chilled Water and Warm Water Circulating System.
Landlord’s Annual Supplemental Chilled Water Charge shall be adjusted effective
as of the first month of each FAOP Lease Year hereunder (but never decreased
below $2,000) by multiplying Landlord’s Annual Supplemental Chilled Water
Charge by the percentage difference between the Price Index (as such term is
hereinafter defined) for the month prior to such first month and the Base Price
Index (as such term is hereinafter defined), and by adding the result to the
Landlord’s Annual Supplemental Chilled Water Charge. The term “Price Index”
when used herein shall mean the “Consumer Price Index” published by the Bureau
of Labor Statistics of the U.S. Department of Labor, All Items, New York, NY –
Northeastern, N.J., for urban wage earners and clerical workers, or a successor
or substitute index approximately adjusted. The term “Base Price Index” shall
mean the Price Index for December 2012. Anything contained herein to the
contrary notwithstanding, in the event that the Price Index ceases to use
1982-84=100 as the basis of calculation, or if a substantial change is made in
the terms or number of items contained in the Price Index, then the Price Index
shall be adjusted to the figure that would have been arrived at had the manner
of computing the Price Index in effect at the date of this Agreement not been
altered. In the event such Price Index (or a successor or substitute index) is
not available, a reliable governmental or other non-partisan publication
evaluating the information theretofore used in determining the Price Index
shall be used.

          11. The
following provisions of the Original Lease shall not be applicable to the First
Additional Office Premises: paragraphs A, B, C, D, E, F and H of Article 1; the
fixed annual rental rates set forth in Article 2A; paragraphs A, B, C, E and F
of Article 23; Article 40; Article 43A; and Exhibits A, H, I and J (except that
a new Exhibit H in the form attached to and made a part of this Agreement shall
be deemed to be, and hereby is, added to the Original Lease). 

16

          12. The
term of the Lease with respect to the Original Demised Premises shall be deemed
to be, and hereby is, extended for a period of five (5) years and three (3)
months, commencing on November 1, 2024 and ending on January 31, 2030 (the “ODP
Extension Period”), unless such term shall sooner terminate as in the Lease, as
modified hereby, provided. During the ODP Extension Period, the Original
Demised Premises shall be leased to Tenant pursuant to all of the terms,
covenants and conditions of the Lease, as modified hereby, except as follows:

                    A.
During the ODP Extension Period, Tenant shall pay Landlord fixed annual rent
for the Original Demised Premises at a rate equal to the lesser of the
following: (i) one hundred percent (100%) of the fair and reasonable annual
market rental rate for the Original Demised Premises as of the first day of the
ODP Extension Period, taking into account the rentals at which leases are being
concluded for comparable space in the Building and in comparable buildings in
the same rental area as the Building, and all other relevant factors
(including, without limitation, the new Base Year and base tax year applicable
to the ODP Extension Period); and (ii) the aggregate of the fixed annual rental
rate payable for the Original Demised Premises as of October 1, 2024, plus the
sum of the operating expense and real estate tax escalation additional rents
payable for the Original Demised Premises under paragraphs B and C of Article 2
of the Original Lease, respectively, for the last twelve (12) months of the
initial term of the Lease, as modified hereby, with respect to the Original
Demised Premises (i.e., the twelve (12) month period from November 1, 2023
through October 31, 2024). The fair and reasonable annual market rental rate
for the Original Demised Premises effective as of the commencement of the ODP
Extension Period shall take into account, also, the five (5) year, three (3)
month term of the extension, and it shall be determined during the last six (6)
months of the initial term of the Lease, as modified hereby, with respect to
the Original Demised Premises (i.e., during the six (6) month period from May
1, 2024 through October 31, 2024). On or before the commencement of such six
(6) month period, Landlord shall notify Tenant of Landlord’s determination of
such fair and reasonable annual market rental rate for the Original Demised
Premises. Within thirty (30) days after the later of (x) the commencement of
such six (6) month period, or (y) Tenant’s receipt of Landlord’s determination
of such fair and reasonable annual market rental rate, Tenant shall respond to
Landlord’s notice with Tenant’s determination of the fair and reasonable annual
market rental rate for the Original Demised Premises. Upon receipt of such
notice from Tenant, Landlord and Tenant shall seek to agree as to the amount of
such fair and reasonable annual market rental rate for the Original Demised
Premises. If they shall not agree as to such rate within thirty (30) days after
receipt of such notice from Tenant, then and in such event said fair and
reasonable annual market rental rate shall be determined by appraisal as
provided in Article 32A(e) of the Original Lease. If at the commencement date
of the ODP Extension Period, the amount of the fixed annual rental rate payable
during said period in accordance with the foregoing provisions shall not have
been determined, then, pending such determination, Tenant shall pay fixed
annual rent at a rate equal to 100% of (x) the fixed annual rental rate payable
under the Lease, as modified hereby, with respect to the Original Demised
Premises, as of October 1, 2024, plus (y) the sum of the operating expense and
real estate tax escalation additional rent payable under paragraphs B and C of
Article 2 of the Original Lease, respectively, for the last twelve (12) months
of the initial term of the Lease, as modified hereby, with respect to the
Original Demised Premises (the “ODP Temporary Rate”). After the determination
by appraisal or agreement, as the case may be, of the fair and reasonable
annual 

17

market rental rate for the Original Demised Premises, if the fixed
annual rental rate payable pursuant to this Article is less than the ODP
Temporary Rate, Landlord shall promptly pay to Tenant the difference between
the rent theretofore paid at the ODP Temporary Rate and the lesser rental rate
determined after the appraisal or agreement, as the case may be (or, at
Landlord’s option, Tenant shall be entitled to a rent credit in such amount, to
be applied, until fully depleted, against the next rent due under the Lease, as
modified hereby, with respect to the Original Demised Premises); and the lesser
fixed annual rental rate so determined after the appraisal shall be payable
during the ODP Extension Period.

                    B.
During the ODP Extension Period, Tenant shall continue to pay
Landlord operating expense escalation additional rent for the Original Demised
Premises, in accordance with Article 2B of the Original Lease, except that the
Base Year shall mean the calendar year 2024, and the first “comparative year”
shall mean the calendar year 2025.

                    C.
During the ODP Extension Period, Tenant shall continue to pay Landlord real
estate tax escalation additional rent for the Original Demised Premises, in
accordance with Article 2C of the Original Lease, except that the “base tax
year” shall mean the New York City real estate tax year commencing July 1, 2024
and ending June 30, 2025; and the first “comparative year” shall mean the New York
City real estate tax year commencing July 1, 2025 and ending June 30, 2026.

                    D.
During the ODP Extension Period, Landlord shall continue to furnish and
redistribute electricity to Tenant on a submetering basis, in accordance with
the provisions of Article 3 of the Original Lease.

                    E.
Tenant shall continue in possession of the Original Demised Premises, at the
commencement of the ODP Extension Period in its “as is” condition, and Tenant
agrees that Landlord shall have no obligation to perform any work in or to the
Original Demised Premises to make such space suitable and ready for Tenant’s
continued occupancy and use during the ODP Extension Period. Nothing contained
in this Article 12E shall be deemed to limit Landlord’s obligations with
respect to the repair and/or restoration of the Original Demised Premises and
the First Additional Office Premises as set forth in the Lease, as modified
hereby, including, without limitation, Landlord’s obligations set forth in Articles
10, 11 and 14 of the Original Lease.

          13. The
term of the Lease with respect to the Storage Space shall be deemed to be, and
hereby is, extended for the ODP Extension Period, unless such term shall sooner
terminate as in the Lease, as modified hereby, provided. During the ODP
Extension Period, the Storage Space shall be leased to Tenant pursuant to all
of the terms, covenants and conditions of the Lease, as modified hereby, except
as follows:

                    A.
During the ODP Extension Period, Tenant shall pay Landlord fixed annual rent
for the Storage Space at a rate equal to the lesser of the following: (i) one
hundred percent (100%) of the fair and reasonable annual market rental rate for
the Storage Space as of the first day of the ODP Extension Period, taking into
account the rentals at which leases are being concluded for comparable space in
the Building and in comparable buildings in the same rental area as the
Building, and all other relevant factors (including, without limitation, the
new Base 

18

Year and base tax year applicable to the ODP Extension Period); and
(ii) the aggregate of the fixed annual rental rate payable for the Storage
Space under the First Modification as of October 1, 2024, plus the sum of the
operating expense and real estate tax escalation additional rents payable under
Articles 3 and 4 of the First Modification, respectively, for the Storage Space
for the last twelve (12) months of the initial term of the Lease, as modified
hereby, with respect to the Storage Space (i.e., the twelve (12) month period
from November 1, 2023 through October 31, 2024). The fair and reasonable annual
market rental rate for the Storage Space effective as of the commencement of
the ODP Extension Period shall take into account, also, the five (5) year,
three (3) month term of the extension, and it shall be determined during the
last six (6) months of the initial term of the Lease, as modified hereby, with
respect to the Storage Space (i.e., during the six (6) month period from May 1,
2024 through October 31, 2024). On or before the commencement of such six (6)
month period, Landlord shall notify Tenant of Landlord’s determination of such
fair and reasonable annual market rental rate for the Storage Space. Within
thirty (30) days after the later of (x) the commencement of such six (6) month
period, or (y) Tenant’s receipt of Landlord’s determination of such fair and
reasonable annual market rental rate, Tenant shall respond to Landlord’s notice
with Tenant’s determination of the fair and reasonable annual market rental
rate for the Storage Space. Upon receipt of such notice from Tenant, Landlord
and Tenant shall seek to agree as to the amount of such fair and reasonable
annual market rental rate for the Storage Space. If they shall not agree as to
such rate within thirty (30) days after receipt of such notice from Tenant,
then and in such event said fair and reasonable annual market rental rate shall
be determined by appraisal as provided in Article 32A(e) of the Original Lease.
If at the commencement date of the ODP Extension Period, the amount of the
fixed annual rental rate payable during said period in accordance with the
foregoing provisions shall not have been determined, then, pending such
determination, Tenant shall pay fixed annual rent at a rate equal to 100% of
(x) the fixed annual rental rate payable under the Lease with respect to the
Storage Space, as of October 1, 2024, plus (y) the sum of the operating expense
and real estate tax escalation additional rents payable under paragraphs 3 and
4 of the First Modification, respectively, for the Storage Space, for the last
twelve (12) months of the initial term of the Lease, as modified hereby, with
respect to the Storage Space (the “ODP Storage Space Temporary Rate”). After
the determination by appraisal or agreement, as the case may be, of the fair
and reasonable annual market rental rate for the Storage Space, if the fixed
annual rental rate payable pursuant to this Article is less than the ODP
Storage Space Temporary Rate, Landlord shall promptly pay to Tenant the
difference between the rent theretofore paid at the ODP Storage Space Temporary
Rate and the lesser rental rate determined after the appraisal or agreement, as
the case may be (or, at Landlord’s option, Tenant shall be entitled to a rent
credit in such amount, to be applied, until fully depleted, against the next
rent due under the Lease, as modified hereby, with respect to the Storage
Space); and the lesser fixed annual rental rate so determined after the
appraisal shall be payable during the ODP Extension Period.

                    B.
During the ODP Extension Period, Tenant shall continue to pay
Landlord operating expense escalation additional rent for the Storage Space, in
accordance with the provisions of Article 3 of the First Modification, except
that the Base Year shall mean the calendar year 2024, and the first
“comparative year” shall mean the calendar year 2025.

                    C.
During the ODP Extension Period, Tenant shall continue to pay Landlord real
estate tax escalation additional rent for the Storage Space, in accordance with
the provisions

19

of Article 4 of the First Modification, except that the “base tax year”
shall mean the New York City real estate tax year commencing July 1, 2024 and
ending June 30, 2025; and the first “comparative year” shall mean the New York
City real estate tax year commencing July 1, 2025 and ending June 30, 2026.

                    D.
During the ODP Extension Period, Landlord shall continue to
furnish and redistribute electricity to Tenant on a rent inclusion basis, in
accordance with the provisions of Article 6 of the First Modification.

                    E.
Tenant shall continue in possession of the Storage Space, at the commencement
of the ODP Extension Period in its “as is” condition, and Tenant agrees that
Landlord shall have no obligation to perform any work in or to the Storage
Space to make such space suitable and ready for Tenant’s continued occupancy
and use during the ODP Extension Period. Nothing contained in this Article 13E
shall be deemed to limit Landlord’s obligations with respect to the repair
and/or restoration of the Storage Space as set forth in the Lease, as modified
hereby, including, without limitation, Landlord’s obligations set forth in
Articles 10, 11 and 14 of the Original Lease.

          14. Article
3 of the Original Lease shall be deemed to be, and hereby is, modified so that
Landlord may, from time to time, following the expiration of the first FAOP
Lease Year (but not more frequently than once in any FAOP Lease Year), cause
Landlord’s electrical consultant to determine Tenant’s electrical requirements
for the Expanded Demised Premises over the twelve (12) months immediately
preceding each such determination. If Landlord’s electrical consultant shall
determine that Tenant’s electrical requirements are less than the electrical
capacity which Landlord is responsible hereunder to provide to the Expanded
Demised Premises (i.e., six (6) watts per rentable square foot of demand load
in the Original Demised Premises and the FAOP Electrical Capacity in the First
Additional Office Premises), then Landlord may, in its sole discretion, at any
time following the sixtieth (60th) day after giving Tenant notice
(hereinafter referred to as the “Electric Recapture Notice”) of Landlord’s
intent to do so, perform all work (collectively, “Landlord’s Excess Capacity
Recapture Work”) required in order to recapture up to eighty percent (80%) of
any such excess electrical capacity then so determined to exist (provided such
recapture of electrical capacity has no adverse impact (other than to a de
minimis extent) on the operation of Tenant’s business in the Expanded Demised
Premises), unless Tenant shall have objected to such recapture in the manner
hereinafter provided within such sixty (60) day period. The Electric Recapture
Notice shall be (a) given not later than sixty (60) days following the
determination of such excess capacity and (b) accompanied by an explanation in
reasonable detail of how the determination of such excess capacity was made
(including, without limitation, calculations thereof prepared by a licensed
electrical engineer). Any objection to such recapture of excess electrical
capacity shall be in writing specifying in reasonable detail the reasons for
such objection, including, without limitation, calculations of Tenant’s
electrical requirements prepared by a licensed electrical engineer. Any such
dispute shall be resolved pursuant to the dispute resolution provisions of
Article 3B(iv) of the Original Lease. If it then shall be determined that
excess capacity exists, then upon not less than thirty (30) days’ notice to
Tenant and subject to the terms, covenants and conditions of Article 24 of this
Agreement, Landlord may perform Landlord’s Excess Capacity Recapture Work in
order to recapture up to eighty percent (80%) of such excess capacity. Tenant
acknowledges that the 

20

purpose of this Article is to foster conservation of electric
consumption in the Building. Notwithstanding the foregoing, if Landlord recaptures
any such excess capacity and Tenant thereafter provides Landlord with a “load
letter” from Tenant’s engineer or from a reputable electrical consultant which
substantiates (to the reasonable satisfaction of Landlord) Tenant’s need for
any additional electrical capacity for its operations in the Expanded Demised
Premises, then Landlord, at Landlord’s sole cost and expense and subject to the
terms, covenants and conditions of Article 24 of this Agreement, shall as
expeditiously as reasonably possible perform all work (collectively,
“Landlord’s Electrical Restoration Work”) as is necessary to provide such
additional electrical capacity to the Expanded Demised Premises (at the
existing electrical panels or then existing electrical busways located on each
applicable floor, as determined by Landlord), provided that in no event shall
Landlord be responsible for providing any electrical capacity in excess of six
(6) watts per rentable square foot of demand load in the Original Demised
Premises and the FAOP Electrical Capacity in the First Additional Office
Premises.

          15. A.
Reference is hereby made to the following subordination, non-disturbance and
attornment agreements (each an “Existing SNDA” and collectively, the “Existing
SNDA’s”): (i) SNDA between Empire State Building L.L.C. and Tenant dated as of
July 14, 2008; (ii) SNDA between Empire State Land Associates L.L.C. and Tenant
dated as of July 14, 2008; and (iii) SNDA between CO and Tenant dated as of
July 14, 2008. Landlord agrees to obtain and deliver to Tenant an agreement
from the grantor under each of the Existing SNDA’s confirming that its Existing
SNDA will remain in full force and effect with respect to the Lease, as
modified by this Agreement, executed by the applicable grantor, and acknowledged.
Landlord shall deliver such confirmation from Empire State Building Associates
L.L.C. and Empire State Land Associates L.L.C. to Tenant simultaneously with
the execution and delivery of this Agreement by Landlord and Tenant, and
Landlord shall deliver such confirmation from CO to Tenant within thirty (30)
days of the date that this Agreement is executed and delivered by Landlord and
Tenant. In the event that Landlord fails to so deliver such confirmation from
CO to Tenant within such thirty (30) day period, then, at Tenant’s election, to
be made by notice to Landlord given within ten (10) days after the end of such
thirty (30) day period, this Agreement shall be deemed null and void and of no
further force and effect, and neither party shall have any further obligation
or liability to the other hereunder.

                    B.
As of the date hereof, the real property of which the Building forms a part is
encumbered by the first mortgage with CO referred to in the Existing SNDA with
CO described in paragraph A above, and a certain second mortgage made by Empire
State Land Associates L.L.C. and Empire State Building Associates L.L.C. in
favor of Signature Bank (“Signature”). Notwithstanding anything contained in
the Lease, as modified hereby, to the contrary, Landlord shall obtain from
Signature, for the benefit of Tenant, a subordination, non-disturbance and
attornment agreement, substantially in the form attached hereto and made a part
hereof as Exhibit C. Landlord shall deliver such subordination, non-disturbance
and attornment agreement to Tenant executed by Signature, Landlord, Empire
State Land Associates L.L.C. and Empire State Building Associates L.L.C., and
acknowledged, within thirty (30) days of the date that this Agreement is
executed and delivered by Landlord and Tenant. In the event that Landlord fails
to so deliver such subordination, non-disturbance and attornment agreement to
Tenant within such thirty (30) day period, then, at Tenant’s election, to be
made by notice to Landlord given within ten (10) days after the end of such
thirty (30) day period, this Agreement 

21

shall be deemed to be null and void and of no further force and effect,
and neither party shall have any further obligation or liability to the other
hereunder. Tenant shall promptly execute, have acknowledged and deliver any
such subordination, non-disturbance and attornment agreement.

          16.
Article 32 of the Original Lease shall be deemed to be, and
hereby is, modified so that (i) all references therein to the “demised
premises” shall mean the EP Renewal Premises (as such term is hereinafter
defined); (ii) the “Extended Term” shall mean the five (5) year period
commencing on February 1, 2030 and ending January 31, 2035; and (iii) the
reference to the “Expiration Date” in Article 32A(a) shall mean the “New
Expiration Date”. The term “EP Renewal Premises” when used in this Agreement
shall mean the portion of the Expanded Demised Premises as to which Tenant
exercises its renewal option pursuant to Article 32 of the Lease, as modified
hereby; it being understood and agreed, however, that Tenant may only exercise
such renewal option with respect to the entire Expanded Demised Premises or any
portion thereof consisting of two (2) or more contiguous floors (which floors
may include, without limitation, the portion of the 15th floor
included in the Expanded Demised Premises) located at the top or bottom of
Tenant’s stack of floors (so that there is no separation of any floors which
are included in the Expanded Demised Premises but not the EP Renewal Premises).
If Tenant exercises such renewal option with respect to less than all of the
Expanded Demised Premises, then “The Percentage” for purposes of calculating
operating expense and real estate tax escalation additional rents payable under
paragraphs B and C of Article 2 of the Original Lease, as modified hereby,
respectively, during the Extended Term shall be calculated in the same manner
as under the Original Lease with respect to the Original Demised Premises.

          17.
The Right of First Offer set forth in Article 43B of the Original
Lease shall be deemed to be, and hereby is, modified so that it shall apply to
the portion of the 15th floor of the Building which is not included
in the Expanded Demised Premises (and is approximately as shown on the space
diagram attached hereto and made a part hereof as Exhibit D), as well as the 13th,
18th and 19th floors of the Building. Additionally,
Article 43G of the Original Lease shall be deemed to be, and hereby is,
modified so that the reference therein to “eighty-five percent (85%)” shall be
changed to “eighty percent (80%)” with respect to the entire Expanded Demised
Premises.

          18.
A. Tenant represents and warrants that it neither consulted nor
negotiated with any broker or finder with regard to this Agreement other than
Newmark & Co. Real Estate, Inc., d/b/a Newmark Knight Frank and Cassidy
Turley New York, Inc. (collectively, the “Brokers”). Tenant shall indemnify,
defend and hold Landlord harmless from and against any claims for fees or
commissions from anyone other than the Brokers with whom Tenant has dealt in
connection with this Agreement.

                    B.
Landlord represents and warrants that it neither consulted nor negotiated with
any broker or finder with regard to this Agreement other than the Brokers.
Landlord shall indemnify, defend and hold Tenant harmless from and against any
claims for fees or commissions from anyone including the Brokers, with whom
Landlord has dealt in connection with this Agreement. Landlord agrees to pay
any commission or fee owing to the Brokers 

22

pursuant to separate agreements with them. Nothing in this Article
shall be construed to be a third party beneficiary contract.

          19. A.
Tenant hereby represents that, to the best of its knowledge: (i) Landlord is in
full compliance with the Lease, (ii) Landlord is not in default beyond any
applicable grace period of any of its respective obligations under the Lease,
and (iii) there exists no defense or counterclaim to the payment of any fixed
annual rent or additional rent Landlord has billed Tenant to date under the
Lease.

                    B.
Landlord hereby represents that, to the best of its knowledge: (i) Tenant is in
full compliance with the Lease, and (ii) Tenant is not in default beyond any
applicable grace period of any of its respective obligations under the Lease.

          20. This
Agreement shall not in any way bind Landlord or Tenant until such time as it
has been executed by both Landlord and Tenant, and thereafter has been duly
delivered to the respective parties.

          21. Except
as herein modified, all of the terms, covenants and conditions of the Lease are
and shall remain in full force and effect and are hereby ratified and
confirmed.

          22.
This Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective legal representatives,
successors and assigns. This Agreement constitutes the entire agreement of the
parties concerning the matters and transactions covered by this Agreement.

          23.
This Agreement may be executed in one (1) or more counterparts,
each of which shall be deemed an original, but all of which when taken together
will constitute one and the same instrument. The signature page of any counterpart
of this Agreement may be detached therefrom without impairing the legal effect
of the signature(s) thereon provided such signature page is attached to any
other counterpart of this Agreement identical thereto except having an
additional signature page executed by the other party to this Agreement
attached thereto. Any counterpart of this Agreement may be delivered via
facsimile, email or other electronic transmission, and shall be legally binding
upon the parties hereto to the same extent as originals.

          24.
Tenant shall reasonably cooperate with Landlord in connection
with any Landlord’s Punch List Work, Landlord’s Asbestos Removal Work,
Landlord’s Submetering Work, Landlord’s Additional Electrical Capacity Work,
Landlord’s Excess Capacity Recapture Work, Landlord’s Electrical Restoration
Work and Landlord’s 15th Floor Corridor Work, including, without limitation, by
providing Landlord and its contractors with such access to the Expanded Demised
Premises as is reasonably necessary for the performance of such work. Landlord
shall use commercially reasonable efforts to effect such access and work in a
manner which minimizes any interference with, as the case may be, the
performance of Tenant’s FAOP Initial Installation Work or the conduct of Tenant’s
business at the Expanded Demised Premises; it being understood and agreed,
however, that any such work may be performed on Business Days during Business
Hours unless (a) such entry or work (1) results in a denial of any reasonable
means of access to the Expanded Demised Premises or use of the Expanded Demised

23

Premises for the performance of Tenant’s FAOP Initial Installation Work
or for the conduct of Tenant’s business in the normal course thereof or (2)
imminently threatens the health or safety of any authorized occupant of the
Expanded Demised Premises; or (b) Tenant shall request that Landlord perform
the work on an overtime or premium basis and Tenant shall agree to reimburse
Landlord for the cost of same (provided such work is capable of being performed
on such overtime or premium basis and it is possible to do so), in which event
Tenant shall pay to Landlord, within thirty (30) days after demand therefor, an
amount equal to the difference between overtime or premium pay rates and the
regular pay rates for performing such work.

          25.
It is acknowledged that the portion of the 15th floor
of the Building which is not included in the Expanded Demised Premises is
currently occupied by another tenant (the “15th Floor Existing
Tenant”), pursuant to a certain lease with Landlord, the term of which is
scheduled to expire on December 31, 2012 (the “15th Floor Existing
Lease”). Notwithstanding anything contained in Article 23E of the Original
Lease to the contrary, unless Tenant leases such portion of the 15th
floor of the Building which is not included in the Expanded Demised Premises as
ROFO Space pursuant to the provisions of Article 43B of the Lease, as modified
hereby, then Landlord shall, subject to the terms, covenants and conditions of
Article 24 of this Agreement, substantially complete such portion of Landlord’s
15th Floor Corridor Work which has not yet been completed, within
one hundred eighty (180) days after the date that the 15th Floor
Existing Tenant vacates the demised premises under the 15th Floor Existing Lease (and if
the 15th Floor Existing Tenant holds over in such space for a period
of more than thirty (30) days after the expiration or earlier termination of
the 15th Floor Existing Lease, Landlord hereby agrees to promptly
commence summary proceedings if reasonably necessary to cause the 15th
Floor Existing Tenant to vacate such space). However, in the event that Tenant
does lease such portion of the 15th floor of the Building which is
not included in the Expanded Demised Premises as ROFO Space pursuant to the
provisions of Article 43B of the Lease, as modified hereby, then Landlord shall
not be required to complete such portion of Landlord’s 15th Floor
Corridor Work which has not yet been completed, but Tenant shall be entitled to
a rent credit in the amount of $45,000.00, which rent credit shall be applied,
until fully depleted, against the first fixed annual rent payable under the
Lease, as modified hereby, with respect to such 15th floor ROFO
Space.

          26.
The following sentence shall be deemed to be, and hereby is,
added to the end of Article 41 of the Original Lease: “Landlord and Tenant each
(i) consent to the entry of judgment in any court upon any award rendered in
any arbitration held pursuant to this Article; and (ii) acknowledge that any
award rendered in any arbitration held pursuant to this Article, whether or not
such award has been entered for judgment, shall be final and binding upon
Landlord and Tenant.”

          27.
Effective as of the date this Agreement is executed and delivered
by Landlord and Tenant, Article 24D of the Original Lease shall be deemed to
be, and hereby is, modified so that the reference therein to “two (2) Executive
Passes” shall be changed to “four (4) Executive Passes”.

[THIS SPACE INTENTIONALLY LEFT BLANK;

SIGNATURE PAGE FOLLOWS THIS PAGE]

24

          IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the day and year first above written.

	
  

 	
  

 	
  

 
	
  

 	
 LANDLORD:

 
	
  

 	
 EMPIRE STATE
 BUILDING COMPANY L.L.C.

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
 /s/ Peter L.
 Malkin

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Peter L.
 Malkin, Member

 
	
  

 	
  

 	
  

 
	
  

 	
 TENANT:

 COTY INC.

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ James E.
 Shiah

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 James E.
 Shiah, SVP Finance and Global Controller

 

25

EXHIBIT A

FIRST ADDITIONAL OFFICE PREMISES

[Floor Plan]

[Floor Plan]

EXHIBIT B

BUILDING STANDARD

ENVIRONMENTAL DESIGN AND CONSTRUCTION GUIDELINES

BUILDING STANDARD ENVIRONMENTAL DESIGN

AND CONSTRUCTION GUIDELINES

A. Energy Efficiency:

          1.
Reduce lighting power density from ASHRAE/IESNA 90.1-2007
standards by at least 10% and up to 35%, as long as the measures required in
order to do so do not affect the design intent of the First Additional Office
Premises in any material respect. This may be achieved through efficient
lighting design, use of low wattage fixtures and reflective surfaces as well as
LED task lights and day-lighting optimization strategies.

          2.
Implement lighting controls, including daylight dimming controls,
for lighting within the perimeter zone (approximately fifteen (15) feet from
the perimeter walls), except for non windowed areas that have no penetration of
natural light. Install occupancy sensors for a target of 75% of the connected
lighting load of the useable space.

          3.
Optimize energy performance of HVAC systems through zoning
controls, VFD’s on pumps and motors, and VAV distribution systems, and specify
CFC-free refrigerants.

          4.
Implement Demand Controlled Ventilation through the use of CO2
sensors in the First Additional Office Premises and in the return air stream to
the Air Handling Unit serving the First Additional Office Premises and tie in
to controls.

          5.
Tie in radiators to VAV box controls and building management
system.

          6.
Install local instantaneous hot water heaters.

          7.
Target lighting and plug load of 2.0-2.5 Watts per usable square
foot of demand load.

          8.
Reduce plug loads by specifying equipment and appliances
(including, without limitation, computers, printers, refrigerators, copiers,
and A/V and IT equipment) that meet or exceed Energy Star requirements in
effect as of the date hereof. This provision shall only apply to new equipment
and appliances purchased by Tenant for use within the First Additional Office
Premises.

          9.
Perform a one-time commissioning of energy systems within the
First Additional Office Premises (including, without limitation, lighting, HVAC
and electrical) after substantial completion of Tenant’s FAOP Initial
Installation Work in order to ensure design optimizes performance and systems
are constructed and function per efficient design.

B. Water Efficiency:

          1.
Specify low flow fixtures, including, without limitation,
lavatories, water closets, urinals and pantry sinks.

C. Materials and Resources:

          1.
Divert construction waste from landfills through recycling and
donation programs.

          2.
Reuse materials whenever possible, including construction
materials.

          3.
Specify recycled content materials whenever reasonably possible,
which may include, without limitation, gypsum board, acoustical tiles, carpet
and carpet backing.

          4.
Specify regionally produced and extracted materials whenever
possible.

          5.
Specify rapidly renewable resources whenever reasonably possible,
including, without limitation, bamboo, wool, linoleum and cork.

          6.
Specify and use wood products certified by the Forest Stewardship
Council (FSC) whenever reasonably possible, provided that the cost of such wood
products is consistent with the market price of comparable non-certified
products.

D. Indoor Environmental Quality:

          1.
Monitor delivery of outside air to ensure indoor air quality
compliance with ASHRAE 62.1 and 55.

          2.
Implement Construction Indoor Air Quality Management Plans during
performance of Tenant’s FAOP Initial Installation Work and prior to occupancy
to minimize the presence and spread of air pollutants.

          3.
Specify and install low-emitting (low or no Volatile Organic
Compounds) adhesives, sealants, paints, coatings, flooring systems, composite
wood and agrifiber products, systems furniture and seating.

          4.
Offer occupants control of lighting.

          5.
Design and build to optimize daylight and views for occupants,
which may be achieved through interior rather than exterior offices, or
perimeter offices with glass fronts.

2

EXHIBIT C

SIGNATURE BANK SNDA

SUBORDINATION, NON-DISTURBANCE AND

ATTORNMENT AGREEMENT

AGREEMENT dated as of the day of ________ May, 2011 among SIGNATURE BANK, a New York
banking corporation with offices at 68 South Service Road, Melville, New York
11747 (“Mortgagee”), COTY, INC., a Delaware corporation with offices at 350
Fifth Avenue, New York, New York 10118 (“Tenant”), EMPIRE STATE LAND ASSOCIATES
L.L.C. (“Land Associates”), a New York limited liability company, and EMPIRE
STATE BUILDING ASSOCIATES L.L.C. (“Associates”, together with Land Associates,
collectively, “Mortgagor”), a New York limited liability company, each with an
address c/o Malkin Holdings LLP, 60 East 42nd Street, New York, New York 10165;
and EMPIRE STATE BUILDING COMPANY L.L.C. (“Landlord”), a New York Limited
Liability Company, with offices at 350 Fifth Avenue, New York, New York 10118.

          WHEREAS,
Land Associates is the fee title owner of certain real property located at 350
Fifth Avenue, New York, New York as more fully described on Schedule A attached
hereto and made a part hereof (the “Premises”), which Premises are subject to a
long-term ground lease in favor of Associates, and which Premises is subleased
to Landlord pursuant to a certain long term operating sublease.

          WHEREAS,
Tenant is the tenant under a certain lease described as follows:

          Lease dated
as of July 14, 2008, between Landlord and Tenant, as modified by that certain
Commencement Date Agreement, dated as of January 14, 2009, that certain First
Lease Modification Agreement, dated as of March 17, 2009, and that certain
Second Lease Modification Agreement, dated as of May  ________, 2011 for the lease of space located
at the Premises (which lease, as so modified, is hereinafter called the
“Lease”); and

          WHEREAS,
the Mortgagee is the holder of a second mortgage on the Premises given by
Mortgagor to the Mortgagee in the original aggregate principal amount of
$31,500,000.00 to be recorded in the Office of the City Register of New York
County (collectively, the “Mortgage”); and

          WHEREAS,
each of the parties wishes to protect their particular interests;

          NOW,
THEREFORE, in consideration of the mutual benefits and covenants contained in
each of the agreements the parties covenant and agree as follows:

          1. Subject
to the terms hereof, Tenant acknowledges and confirms that the Lease and the
rights of the Tenant thereunder are subordinate to the said Mortgage and agrees
that same will be subordinate to any amendment, modification, consolidation,
increase, renewal, substitution, replacement or extension thereof as though
said amendment, modification, consolidation, increase, renewal, substitution,
replacement or extension were executed prior in point of time to the execution
of the Lease. Said Mortgage, amendment, modification, consolidation, increase,
renewal, substitution, replacement or extension shall hereinafter be referred
to as the “Mortgage”.

          2.
The Mortgagee covenants that so long as the Lease is in full
force and effect, and no default by Tenant has occurred and is continuing
thereunder beyond the expiration of any applicable notice, grace and cure
periods provided under the Lease, the Tenant shall not be joined as a party
defendant in any foreclosure action or proceeding which may be instituted or
taken by the Mortgagee, nor shall the Tenant be evicted from the Premises, or
any of the Tenant’s rights under the Lease be affected in any way, by reason of
any default in the Mortgage by the Mortgagor or by the exercise of any rights
of the Mortgagee under the Loan Documents (as such term is hereinafter
defined), except as hereinafter provided (provided, however, that Tenant may be
named or joined as a party defendant in any suit, action or proceeding for the
appointment of a receiver to quiet title to the Premises or to prevent
impairment of Mortgagee’s security under the Mortgage and other documents
executed in connection with said Mortgage (collectively, the “Loan Documents”)
so long as same does not extinguish or interfere with the rights of Tenant
under the Lease).

          3.
If the Mortgagee shall succeed to the position of the Landlord
under the Lease, the Tenant shall attorn to the Mortgagee and recognize it as
the Landlord under the Lease and promptly execute and deliver an attornment
agreement upon request of the Mortgagee.

          4.
If the Tenant is not then in default under the Lease continuing
beyond the expiration of any applicable notice, grace and cure periods provided
under the Lease, the Mortgagee agrees that it will not disturb the possession
of the Tenant as a result of any default by Mortgagor under the Loan Documents
and/or upon any foreclosure of the Mortgage, and that it will accept the
attornment of the Tenant if the Mortgagee succeeds to the position of Landlord
under the Lease.

          5.
In the event that Mortgagee succeeds to the position of the
Landlord under the Lease, then the Lease shall continue in full force and effect
as a direct lease between Mortgagee, as landlord, and Tenant, as tenant, upon
all of the terms, covenants and conditions set forth in the Lease; provided,
however, that Tenant hereby agrees that Mortgagee shall in no event (i) be
liable for any previous act or omission by the Landlord under the Lease, but
the foregoing shall not be construed or interpreted as exculpating Mortgagee
from liability for any damages, fees, costs or expenses arising out of
Mortgagee’s failure to perform any obligations of any prior landlord, which
failure continues following the date fee title to the Premises is transferred
to Mortgagee; (ii) be subject to any offset which shall have accrued to the
Tenant against the Landlord, except for any offsets permitted by applicable law
or specifically provided for under the Lease; (iii) be bound by any material
amendment or modification of the Lease, including, but not limited to, any
reduction in the fixed rent or any lengthening of the term of the lease, unless
the Mortgagee shall have consented thereto in writing (which consent shall not
be unreasonably withheld), except for any such amendments or modifications made
pursuant to provisions of the Lease which contemplate the making of such
amendments or modifications; (iv) be bound by any payment of rent which Tenant
might have paid more than one (1) month in advance of its date due pursuant to
the provisions of the Lease to the Landlord or any prior lessor; or (v) be
liable for the return or application of any security deposited by or on behalf
of the Tenant except to the extent actually received by or credited to the
Mortgagee.

2

          6.
Notwithstanding any provision in the Lease to the contrary,
Tenant shall not surrender or terminate the Lease as a result of Landlord’s
default under said Lease, claim a partial or total eviction by reason of any
default of Landlord under the Lease except to the extent expressly provided in
the Lease and, in such instance, not unless and until Mortgagee shall have
received written notice from Tenant of such default and the Mortgagee is given
a reasonable period of time to remedy such default which period in no event
shall exceed thirty (30) days after the date Tenant gives Mortgagee such
notice. Tenant shall accept performance by Mortgagee, Mortgagee’s designee or a
receiver of any term, covenant or agreement of lessor under the Lease as full
satisfaction thereof, but under no circumstances shall Mortgagee be obligated
to perform any of the terms, covenants or agreements to be performed by lessor
under the Lease until such time, and then only subsequent to the time, if at
all, that Mortgagee shall acquire fee title to the Premises and, in such event,
Mortgagee shall have no obligation or liability with respect to any matter
referred to in clauses (i) through (v) of Paragraph 5 above.

          7. Upon
receipt by Tenant of any written notice (a “Rent Payment Notice”) from
Mortgagee to do so, all rent shall be paid by Tenant to Mortgagee until further
notice from Mortgagee. Landlord irrevocably directs Tenant to comply with any
Rent Payment Notice, notwithstanding any directions or instructions to the
contrary given by Landlord, and Landlord hereby (i) agrees that Tenant’s
compliance with a Rent Payment Notice shall not be deemed a violation of the
Lease, (ii) agrees that all such payments shall be fully credited against
Tenant’s obligations under the Lease, and (iii) releases Tenant from all
liability to Landlord in connection with Tenant’s compliance with the
provisions of this Paragraph 7. The receipt by the Mortgagee of rent shall not
render Mortgagee liable for compliance by Mortgagee with any obligation under
the Lease unless and until Mortgagee acquires fee title to the Premises and
succeeds to the position of lessor under the Lease.

          8.
All notices or other communications required or otherwise given
pursuant to this Agreement shall be in writing and shall be personally
delivered, delivered by overnight courier or mailed by registered or certified
mail, postage prepaid, with return receipt requested, addressed as follows:

	
  

 	
  

 	
  

 
	
  

 	
 If to the
 Mortgagee:

 
	
  

 	
  

 
	
  

 	
  

 	
 Signature
 Bank

 
	
  

 	
  

 	
 68 South
 Service Road 

 Melville, New York 11747 

 Attention:

 
	
  

 	
  

 	
  

 
	
  

 	
 If to the
 Mortgagor:

 
	
  

 	
  

 
	
  

 	
  

 	
 Empire State
 Land Associates L.L.C. 

 Empire State Building Associates L.L.C. 

 c/o Malkin Holdings LLP

 
	
  

 	
  

 	
 60 East 42nd Street

 
	
  

 	
  

 	
 New York,
 New York 10165

 

3

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Attention:
 Senior Asset Supervisor 

 
	
  

 	
  

 	
  

 
	
  

 	
 If to the
 Tenant:

 
	
  

 	
  

 
	
  

 	
  

 	
 Coty, Inc.

 
	
  

 	
  

 	
 Two Park
 Avenue

 
	
  

 	
  

 	
 New York,
 New York 10016 

 Attention: Chief Financial Officer

 
	
  

 	
  

 	
  

 
	
  

 	
 With a copy
 to:

 
	
  

 	
  

 
	
  

 	
  

 	
 Coty, Inc.

 
	
  

 	
  

 	
 Two Park
 Avenue

 
	
  

 	
  

 	
 New York,
 New York 10016 

 Attention: General Counsel

 
	
  

 	
  

 	
  

 
	
  

 	
 If to
 Landlord:

 
	
  

 	
  

 
	
  

 	
  

 	
 Empire State
 Building Company L.L.C. 

 350 Fifth Avenue, Third Floor

 
	
  

 	
  

 	
 New York,
 New York 10118

 
	
  

 	
  

 	
 Attention:
 General Manager

 

          Any party
may change the person or address to whom or which notices are to be given
hereunder, by notice duly given hereunder; provided, however, that any such
notice shall be deemed to have been given hereunder only when actually received
by the party to which it is addressed. Any notice or other communication given
hereunder shall be deemed to have been given or delivered, if personally
delivered, upon delivery, if sent by overnight courier, on the first (1st)
business day after being sent, and if sent by mail, on the third (3rd) business
day after mailing. Each party shall be entitled to rely on all communications
which purport to be given on behalf of any other party hereto and purport to be
signed by an authorized signatory of such party.

4

          9. The
agreements herein contained shall bind and inure to the benefit of and be
enforceable by the parties hereto and their respective successors and assigns
and, without limiting the foregoing, the agreement of the Mortgagee shall be
binding upon any purchaser of the Premises at a sale foreclosing the Mortgage.

          IN WITNESS
WHEREOF, the parties hereto have caused the execution hereof as of the day and
year first above written.

	
  

 	
  

 	
  

 
	
  

 	
 SIGNATURE
 BANK

 
	
  

 	
  

 
	
  

 	
 By: 

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 
	
  

 	
 Title:

 
	
  

 	
  

 	
  

 
	
  

 	
 COTY, INC.

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 
	
  

 	
 Title:

 
	
  

 	
  

 	
  

 
	
  

 	
 EMPIRE STATE
 LAND ASSOCIATES L.L.C.

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 
	
  

 	
 Title:

 
	
  

 	
  

 	
  

 
	
  

 	
 EMPIRE STATE
 BUILDING ASSOCIATES L.L.C.

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 
	
  

 	
 Title:

 
	
  

 	
  

 	
  

 
	
  

 	
 EMPIRE STATE
 BUILDING COMPANY L.L.C.

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 
	
  

 	
 Title:

 

5

	
  

 
	
 STATE OF NEW
 YORK)

 
	
                               )
 ss.:

 
	
 COUNTY OF
 SUFFOLK)

 

          On the
_______ day of _____________ in the year 2011, before me, the undersigned,
personally appeared ____________________, personally known to me or proved to
me on the basis of satisfactory evidence to be the individual whose name is
subscribed to the within instrument and acknowledged to me that she executed
the same in her capacity, and that by her signature on the instrument, the
individual, or the person upon behalf of which the individual acted, executed
the instrument.

	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 Notary
 Public

 	
  

 

	
  

 
	
 STATE OF          )

 
	
                       )
 ss.:

 
	
 COUNTY OF      )

 

          On the _______ day
of _____________ in the year 2011, before me, the undersigned,
personally appeared ____________________, proved to me on the basis
of satisfactory evidence to be the individual whose name is subscribed to the
within instrument and acknowledged to me that he executed the same in his
capacity, and that by his signature on the instrument, the individual, or the
person upon behalf of which the individual acted, executed the instrument.

	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 Notary
 Public

 	
  

 

	
  

 
	
 STATE OF NEW
 YORK     )

 
	
                               )
 ss.:

 
	
 COUNTY OF                       )

 

          On the
______ day of ___________ in the year 2011, before me, the undersigned,
personally appeared _____________________________, proved to me on the basis of
satisfactory evidence to be the individual whose name is subscribed to the
within instrument and acknowledged to me that he executed the same in his
capacity, and that by his signature on the instrument, the individual, or the
person upon behalf of which the individual acted, executed the instrument.

	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 Notary
 Public

 	
  

 

	
  

 
	
 STATE OF NEW
 YORK     )

 
	
                               )
 ss.:

 
	
 COUNTY
 OF                       )

 

          On
the _______ day of _____________ in the year 2011, before me, the
undersigned, personally appeared ____________________ , proved to me
on the basis of satisfactory evidence to be the individual whose name is
subscribed to the within instrument and acknowledged to me that he executed the
same in his capacity, and that by his signature on the instrument, the individual,
or the person upon behalf of which the individual acted, executed the
instrument.

	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 Notary
 Public

 	
  

 

	
  

 
	
 STATE OF NEW
 YORK     )

 
	
                               )
 ss.:

 
	
 COUNTY
 OF                       )

 

          On
the _______ day of _____________ in the year 2011, before me, the
undersigned, personally appeared ____________________, proved to me
on the basis of satisfactory evidence to be the individual whose name is
subscribed to the within instrument and acknowledged to me that he executed the
same in his capacity, and that by his signature on the instrument, the
individual, or the person upon behalf of which the individual acted, executed
the instrument.

	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 Notary
 Public

 	
  

 

7

SCHEDULE A

Description of Premises

EXHIBIT D

PORTION OF 15th FLOOR COVERED BY ROFO

[Floor Plan]

EXHIBIT E

ESCROW AGREEMENT FOR LANDLORD’S FAOP CONTRIBUTION

EMPIRE STATE BUILDING COMPANY L.L.C.

350 Fifth Avenue, Third Floor

New York, New York 10118

May ___ 2011

Coty Inc.

Two Park Avenue

New York, New York 10016

          Re:          Empire
State Building, New York, New York 

Ladies and
Gentlemen:

          Reference
is hereby made to the following documents:

          (i)
that certain lease (“Original Lease”) dated as of July 14, 2008
between Empire State Building Company L.L.C., as landlord (“Landlord”) and Coty
Inc., as tenant (“Tenant”), covering certain space (the “Original Demised
Premises”) consisting of the entire rentable area of the 14th floor,
and a portion of the 15th floor, of the building (“Building”) known
as the Empire State Building, 350 Fifth Avenue, New York, New York, which
Original Lease was modified by a certain Commencement Date Agreement dated as
of January 14, 2009, and by a certain First Lease Modification Agreement dated
as of March 17, 2009 (“First Lease Modification”) (which Original Lease, as so
modified, is hereinafter called the “Lease”); and

          (ii)
that certain proposed Second Lease Modification Agreement,
pursuant to which the entire rentable area of the 16th and 17th floors of the Building will
be added to the premises demised under the Lease (the “Proposed Modification”).

          Pursuant to
the First Modification, certain storage space on the fifteenth floor of the
Building (the “Storage Space”; together with the Original Demised Premises,
collectively, the “Existing Demised Premises”) was added to the premises
demised under the Original Lease.

          Capital
One, N.A. (“Capital One”), the holder of a certain first mortgage currently
encumbering the Building (the “Capital One Mortgage”), is not willing to assume
responsibility for the payment of any unpaid portion of Landlord’s FAOP
Contribution (as such term is defined in Article 8C(iii) of the Proposed
Modification) if Capital One succeeds to the interest of Landlord under the
Lease, as modified by the Proposed Modification, notwithstanding its agreement
to enter into a non-disturbance agreement with Tenant. Tenant is not willing to
execute and deliver the Proposed Modification unless and until Landlord provides
Tenant with adequate security for the payment of any portion of Landlord’s FAOP
Contribution remaining unpaid if, as and when Capital One succeeds to the
interest of Landlord under the Lease, as modified by the Proposed Modification.
As an inducement to Tenant to execute and deliver the 

Proposed Modification, Landlord is willing to provide such adequate
security by depositing the amount of Landlord’s FAOP Contribution (i.e.,
$6,980,688.00) into escrow, in accordance with the terms and conditions hereinafter
set forth.

          Therefore,
it is hereby agreed as follows:

          1.
Capitalized terms not defined herein shall have the meanings
ascribed to such terms in the Lease and the Proposed Modification.

          2.
Simultaneously with the execution and delivery of this letter
agreement by Landlord and Tenant, Landlord deposited the sum of $6,980,688.00
(the “FAOP Escrow Deposit”) with Landlord’s attorneys, David J. Bleckner, P.C.
(“Escrowee”), which shall hold such sum in escrow, in an interest bearing
attorney escrow account at Citibank, N.A. (or another bank selected by
Escrowee, notice of which shall be given to Landlord and Tenant), in accordance
with the terms and conditions of this letter agreement.

          3.
The FAOP Escrow Deposit shall be disbursed by Escrowee as
follows:

                    A.
If, following Capital One’s succeeding to Landlord’s interest under the Lease,
as modified by the Proposed Modification, Capital One shall refuse to pay any
unpaid portion of Landlord’s FAOP Contribution (or interest or legal fees due
in connection therewith) when due, then, within two (2) business days after
Escrowee’s receipt of Tenant’s written demand therefor (accompanied by the
documentation set forth in clauses (a), (b) and (c) of Article 8C(iii) of the
Proposed Modification), Escrowee shall advise Landlord of Tenant’s demand by
sending a copy thereof and the accompanying supporting documentation. If
Landlord shall fail to object in writing to Escrowee’s disbursement of the
amount so demanded within five (5) business days after the date Escrowee’s
notice is given, Escrowee shall pay Tenant the amount so demanded on account of
Landlord’s FAOP Contribution. If Landlord shall timely object to such
disbursement (which objection, if made, shall be based solely on the claim that
Tenant has failed to satisfy the conditions to the disbursement of such funds
pursuant to the provisions of Article 8C(iii) of the Proposed Modification, and
shall be accompanied by an explanation of the reason(s) therefor and details
sufficient to enable Tenant to cure such objection), then Escrowee shall advise
Tenant of Landlord’s objection by sending a copy thereof to Tenant, and
Escrowee shall continue to hold such funds until resolution of the dispute (or,
at its election, shall deposit such funds into court, as hereinafter provided
in Article 4A). Any such dispute shall be resolved by arbitration in accordance
with the provisions of Article 41 of the Original Lease, and if Tenant prevails
in such arbitration proceeding, then Escrowee shall be required to pay Tenant
(from the FAOP Escrow Deposit) the full amount awarded to Tenant in such
proceeding, including, without limitation, any attorneys’ fees and/or interest
awarded to Tenant in such proceeding in accordance with the provisions of said
Article 8C(iii).

                    B.
In the event that Landlord shall pay Tenant any portion of Landlord’s FAOP
Contribution in accordance with the terms of the Proposed Modification, then
Landlord shall notify Escrowee thereof. Within two (2) business days after
Escrowee’s receipt of Landlord’s notice of such payment, Escrowee shall notify
Tenant that Escrowee intends to refund to Landlord, from the FAOP Escrow
Deposit, an amount equal to the portion of 

2

Landlord’s FAOP Contribution so paid by Landlord. If Tenant shall fail
to object in writing to such refund by Escrowee, within five (5) business days
after the date Escrowee’s notice is given, then Escrowee shall refund such
portion of the FAOP Escrow Deposit to Landlord (and the amount of the FAOP
Escrow Deposit which is required to maintained hereunder shall be deemed
reduced by such amount). If Tenant shall timely object to such refund by
Escrowee (which objection, if made, shall be based solely on the claim that
Landlord has failed to actually pay such portion of Landlord’s FAOP
Contribution (or interest or legal fees due in connection therewith), and shall
be accompanied by a reasonably detailed explanation of the reason(s) therefor),
then Escrowee shall advise Landlord of Tenant’s objection by sending a copy
thereof to Landlord, and Escrowee shall continue to hold such funds until
resolution of the dispute (or, at its election, shall deposit such funds into
court, as hereinafter provided in Article 4A). Any such dispute shall be
resolved by arbitration in accordance with the provisions of Article 41 of the
Original Lease.

                    C.
In the event that Tenant shall fail by the fourth anniversary of
the FAOP Commencement Date to perform sufficient Tenant’s FAOP Initial
Installation Work for Landlord’s FAOP Contribution to be fully applied, then
Landlord shall notify Escrowee thereof. Within two (2) business days after
Escrowee’s receipt of such notice from Landlord, Escrowee shall notify Tenant
that Escrowee intends to refund to Landlord, from the FAOP Escrow Deposit, an
amount equal to the then remaining balance of the FAOP Escrow Deposit. If
Tenant shall fail to object in writing to such refund by Escrowee, within five
(5) business days after the date Escrowee’s notice is given, then Escrowee
shall refund such remaining balance of the FAOP Escrow Deposit to Landlord. If
Tenant shall timely object to such refund by Escrowee (which objection, if
made, shall be based solely on the claim that Tenant has, prior to the fourth
anniversary of the FAOP Commencement Date, performed sufficient Tenant’s FAOP
Initial Installation Work for Landlord’s FAOP Contribution to be fully applied,
or that Landlord has not paid interest or legal fees which are then due to
Tenant under the provisions of the Proposed Modification governing Landlord’s
FAOP Contribution, and which objection shall be accompanied by a reasonably
detailed explanation of the reason(s) therefor), then Escrowee shall advise
Landlord of Tenant’s objection by sending a copy thereof to Landlord, and
Escrowee shall continue to hold such funds until resolution of the dispute (or,
at its election, shall deposit such funds into court, as hereinafter provided
in Article 4A). Any such dispute shall be resolved by arbitration in accordance
with the provisions of Article 41 of the Original Lease.

                    D.
All interest earned on the FAOP Escrow Deposit shall be added
onto and become part of the FAOP Escrow Deposit and, to the extent it has not
been applied in accordance with the terms hereof, shall be released to Landlord
when Landlord’s obligations under the Lease, as modified by the Proposed
Modification, with respect to Landlord’s FAOP Contribution have been fully
satisfied.

          4. A. In
the event of any dispute regarding this letter agreement or the FAOP Escrow
Deposit, or uncertainty as to the duties of Escrowee hereunder, then except as
otherwise expressly provided for herein, Escrowee shall pay the FAOP Escrow
Deposit or disputed portion thereof, as the case may be, into court pursuant to
the relevant statute.

3

                    B.
The parties agree jointly to defend (by attorneys selected by
Escrowee), indemnify and hold harmless Escrowee against and from any claim,
judgment, loss, liability, cost or expense resulting from any dispute or
litigation arising out of or concerning Escrowee’s duties or services
hereunder. This indemnity shall include, without limitation, reasonable
attorneys’ fees and disbursements either paid to retain attorneys or representing
the fair value of legal services rendered by Escrowee itself.

                    C.
Escrowee shall not be liable for any error in judgment or for any
act done or step taken or omitted in good faith, or for any mistake of fact or
law, except for Escrowee’s own gross negligence or willful misconduct.
Notwithstanding anything contained in this letter agreement to the contrary,
Escrowee shall have no obligation or responsibility to determine the validity
of any objection by either Landlord or Tenant to the disbursement of all or any
part of the FAOP Escrow Deposit; it being understood and agreed that such
determination shall be made solely by the arbitrators in any arbitration
proceeding relating to such objection.

                    D.
The parties acknowledge that Escrowee is merely a stakeholder.
Upon payment of the FAOP Escrow Deposit pursuant to this letter agreement,
Escrowee shall be fully released from any and all liability and obligations
with respect to the FAOP Escrow Deposit.

                    E.
It is acknowledged and agreed that Escrowee is the attorney for
Landlord and that Escrowee shall be entitled to represent Landlord in any
lawsuit, except if same relates to the Escrow Deposit, unless the FAOP Escrow
Deposit has been deposited into court by Escrowee, as hereinabove provided (in
which case Escrowee shall be entitled to represent Landlord in such lawsuit).

                    I.
Any notice or communication to Escrowee shall be in writing and either (a)
delivered by hand or by overnight courier, with receipt acknowledged in either
case, to Escrowee at 350 Fifth Avenue, Suite 2816, New York, New York 10118, or
(b) given by telecopier to (212) 279-4495, in either case, Attn: David J.
Bleckner, Esq. Each notice to Escrowee shall be deemed given when received (or
refused). Any notice or communication to Landlord or Tenant shall be governed
by the notice provisions of the Original Lease.

          5. The
provisions of this letter agreement shall be governed by and construed in
accordance with the internal laws of the State of New York applicable to
agreements made and to be performed wholly in the State of New York, without
regard to principles of conflicts of law.

          6. This
letter agreement shall bind and inure to the benefit of the parties hereto,
their heirs, personal representatives, successors and permitted assigns.

          7. This
letter agreement may not be modified, amended, altered or discharged except by
an instrument in writing signed by the parties hereto.

          8. This
letter agreement may be executed in counterparts, each of which shall be an
original and all of which counterparts taken together shall constitute one and
the same agreement.

4

          9. This
letter agreement supersedes any and all understandings and agreements between
the parties with respect to the subject matter hereof.

          10. In the
event that any provision of this letter agreement shall be held to be invalid
or unenforceable in any respect, the validity, legality or enforceability of
the remaining provisions of this letter agreement shall be unaffected thereby.

          11. This
letter agreement may be executed in two or more counterparts and all
counterparts so executed shall for all purposes constitute one agreement
binding on all of the parties hereto, notwithstanding that all parties shall
not have executed the same counterparts. Facsimile and photocopy signatures on
this letter agreement shall have the same force and effect as originals.

          Please sign
and return a copy of this letter to the undersigned so as to confirm your
agreement with the foregoing.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Very truly
 yours,

 
	
  

 	
  

 
	
  

 	
 EMPIRE STATE
 BUILDING COMPANY L.L.C.,

 
	
  

 	
 Landlord

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
   Name: Peter
 L. Malkin

 
	
  

 	
  

 	
   Title:
 Member

 
	
  

 	
  

 
	
 AGREED:

 	
  

 
	
  

 	
  

 
	
 COTY INC.,
 Tenant

 	
  

 
	
  

 	
  

 
	
 By:

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
   Name: James
 E. Shiah

 	
  

 
	
  

 	
   Title: SVP
 Finance and Global Controller

 	
  

 
	
  

 	
  

 
	
 DAVID J.
 BLECKNER, P.C., Escrowee

 	
  

 
	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
   Name: David
 J. Bleckner, Esq. 

 	
  

 
	
  

 	
   Title:
 President

 	
  

 

5

NEW EXHBIT H FOR ORIGINAL LEASE

ESB CAPITAL IMPROVEMENT DESCRIPTON

ESB Capital Improvement Descriptions

Restroom Renovations - Phases I-V

Renovation of all building restrooms to replace the original finishes
with more modern ones. 5th and final phase of renovations (36 restrooms). 2011
includes completion of phase 5 (36 restrooms).

Restroom Refurbishment

Refurbishment of all renovated restrooms to include lavatory counters,
new efficient lighting and occupancy sensor controls. This project is scheduled
to be done in conjunction with corridor renovations. This line also excludes
Phase V restrooms, which were designed with full finishes.

On-Going A/C Replacement

The original base building standard was constant volume fan coil units
installed above the ceiling. Over the past 5 years 115 have been replaced.
There are 10 units scheduled for replacement in 2011. Units are scheduled based
on lease expiration, performance and unit condition.

Lobby Master Plan

Lobby Master Plan was done to improve the tenant experience in the
Lobby and replicate the original 1931 mural and lighting in the ceiling. Also
included were relocation of turnstiles, installation of a central visitor desk
and replacement of marble where it had been removed for modifications from the
original design.

Corridor Renovation & A/C 

New wall covering, marble restoration, carpet, ceilings, lighting,
ductwork and controls are incorporated in this project. Through 2010, 12 floors
have been completed. 7 corridors to be constructed in 2011.

Electrical Power & Switchboard Equipment

Enhancements to the current building substations and distribution
systems to allow for the most efficient distribution of power throughout the
facility

Elevator Modernization 

The elevator modernization includes all passenger cars banks A-G; and
all freight elevators. New hoists and electronic drives and destination
dispatching system will create a state of the art vertical transportation
system

Local Law 26 

As mandated by the City of New York, Local Law 26 requires all high
rise buildings to be fully sprinkled by 2019. The drain riser and rig installation
portion was completed in 2009. The balance of the floors to be sprinkled by
2018.

Switchboard Distribution Board Renovation 

Renovation of 6 switchgear distribution boards (33rd St., 34th St, 20th
Fl., 41st Fl., 84th Fl., and 84 1/2th)

Chiller Plant Retrofit Completed 

The chiller plant facility improvement measure includes retrofit of the
electric chillers with new compressors and high efficiency motors, controls and
bypass for minimum load operation. Heat exchangers are being retubed with high
efficiency tubes. All controls are to be upgraded to direct digital control

Radiator Barriers Completed 

Installation of insulation and a reflective energy bather behind
existing radiators on exterior walls. This will lower overall heating costs in
the building and make tenant spaces more comfortable.

Window Light Retrofit Completed 

This project will increase the thermal performance of the building’s
windows in order to reduce summer cooling loads and winter heating loads, and
has a significant sustainable component that calls for the recycling of the
existing window components on site. The increased performance results from the
windows being converted to triple glazed gas-filled units. 

Building Controls Automation Completed

This project includes (1) metering for all building electrical closets,
(2) conversion of 350 air handling units to direct digital control and (3)
installation of tenant damper control ventilation, which will monitor and
regulate indoor CO2 levels.

Tenant Energy Management

Web-based energy and emissions tracking system that will provide
tenants with useful utility cost information and will provide the building with
an automated tenant energy billing system. This project will result in
operational savings and will be completed in 2011.

LEED Gold Certification 

Program to obtain a “Gold” rating for Leadership in Energy and
Environmental Design.

2

THIRD LEASE MODIFICATION AGREEMENT

          AGREEMENT
(“Agreement”) made as of April 6th, 2012 between EMPIRE STATE
BUILDING COMPANY L.L.C., a New York limited liability company with an office at
350 Fifth Avenue, Suite 300, New York, New York 10118 (hereinafter called
“Landlord”), and COTY INC., a Delaware corporation with an office at 350 Fifth
Avenue, New York, New York 10118 (hereinafter called “Tenant”).

WITNESSETH:

          WHEREAS,
Landlord and Tenant are the landlord and tenant, respectively, under that
certain lease dated as of July 14, 2008, covering certain space (the “Original
Demised Premises”) consisting of the entire rentable area of the fourteenth (14th)
floor, and a portion of the fifteenth (15th) floor, of the building
(“Building”) known as the Empire State Building, 350 Fifth Avenue, New York,
New York (the “Original Lease”), which Original Lease was modified by a certain
Commencement Date Agreement dated as of January 14, 2009 (the “Commencement
Date Agreement”), by a certain First Lease Modification Agreement dated as of
March 17, 2009 (the “First Modification”), and by a certain Second Lease
Modification Agreement dated as of May 19, 2011 (the “Second Modification”)
(which Original Lease, as so modified, is hereinafter called the “Lease”); and

          WHEREAS,
pursuant to the First Modification, certain storage space, designated as
Storeroom 15A and Storeroom 15C (collectively, the “Storage Space”), each on
the fifteenth (15th) floor of the Building, was added to the demised
premises under the Original Lease; and

          WHEREAS,
pursuant to the Second Modification, certain space, consisting of the entire
rentable area of each of the sixteenth (16th) floor and the
seventeenth (17th) floor of the Building (collectively, the “First
Additional Office Premises”), was added to the demised premises under the
Original Lease (as modified by the Commencement Date Agreement and the First Modification),
so that as of the date hereof, the demised premises under the Lease consists of
the Original Demised Premises, the Storage Space and the First Additional
Office Premises (collectively, the “Second Existing Demised Premises”); and

          WHEREAS,
the term of the Lease with respect to the Second Existing Demised Premises is
scheduled to expire on January 31, 2030; and

          WHEREAS,
Landlord and Tenant wish to modify the Lease by adding to the demised premises
thereunder certain space, consisting of portions of the fifteenth (15th)
and (18th) floors of the Building, and the entire rentable area of
the nineteenth (19th) floor of the Building, all approximately as
shown on the space diagrams attached hereto and made a part hereof as Exhibit A
(collectively, the “Second Additional Office Premises”), all in accordance with
the terms and conditions hereinafter set forth.

          NOW,
THEREFORE, in consideration of the premises, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Landlord and Tenant hereby agree as follows:

          1.
Capitalized terms not defined in this Agreement shall have the meanings
ascribed to such terms under the Lease.

          2. The
Second Additional Office Premises shall be deemed to be, and hereby is, added
to the demised premises under the Lease, for a term of years commencing on the
SAOP Commencement Date (as such term is defined in Article 3 of this
Agreement), and ending on January 31, 2030, unless such term shall sooner
terminate as in the Lease, as modified hereby, provided. Except as otherwise
set forth herein, the Second Additional Office Premises shall be leased to
Tenant pursuant to all of the terms, covenants and conditions of the Lease, as
modified hereby. Landlord and Tenant agree that the rentable square foot area
of the Second Additional Office Premises shall deemed to be 118,792 rentable
square feet, consisting of 15,854 rentable square feet on the fifteenth (15th) floor (the “15th Floor
Portion”), 51,878 rentable square feet on the eighteenth (18th)
floor (the “18th Floor Portion”) and 51,060 rentable square feet on
the nineteenth (19th)
floor (the “19th Floor Portion”). The Second Existing Demised
Premises and the Second Additional Office Premises are hereinafter collectively
called the “Second Expanded Demised Premises”. Unless the context otherwise
requires, all references in the Original Lease to the “demised premises” shall
be deemed to include the Second Additional Office Premises, after the SAOP
Commencement Date.

          3. A.
Subject to the provisions of paragraph E of this Article, the term “SAOP
Commencement Date” when used in this Agreement shall mean the date on which the
last of the following shall have occurred: (i) Landlord delivers vacant
possession of the entire Second Additional Office Premises to Tenant, free of
any occupancies or tenancies, in broom clean condition and free of any
construction debris, materials and equipment and otherwise in safe condition
for the performance of Tenant’s SAOP Initial Installation Work (as such term is
defined in Article 8C of this Agreement); (ii) Landlord substantially completes
Landlord’s SAOP Work (as such term is defined in Article 8B of this Agreement);
and (iii) Landlord gives Tenant at least six (6) months’ prior written notice
of the date that Landlord reasonably anticipates that the SAOP Commencement
Date will occur; provided, however, that in no event shall the SAOP
Commencement Date occur prior to April 1, 2013. Notwithstanding the foregoing,
Tenant shall have the right to defer the SAOP Commencement Date for either one
(1) month, two (2) months, three (3) months or four (4) months, by giving
Landlord written notice thereof within thirty (30) days after Landlord gives
Tenant such six (6) months’ notice of the anticipated SAOP Commencement Date;
provided, however, that if Tenant initially exercises such right to defer the
SAOP Commencement Date for less than a total of four (4) months, then Tenant
shall continue to have such right to defer the SAOP Commencement Date, for one
or more additional one (1) month periods, up to (but in no event in excess of)
a total of four (4) months, by giving Landlord written notice thereof within
thirty (30) days after the date of the initial or any prior exercise by Tenant
of this right to defer the SAOP Commencement Date. If Tenant exercises such
right to defer the SAOP Commencement Date, then the fixed annual rental rates
for the Second Additional Office Premises shall be increased as set forth in Article
4C of this Agreement.

                    B.
Landlord’s SAOP Work shall be deemed to have been substantially completed
despite the fact that minor insubstantial details of construction and
mechanical adjustments (i.e., “punch list items”) remain to be completed,
provided the Second Additional 

2

Office Premises are accessible and reasonably usable by Tenant for the
purpose of effecting Tenant’s SAOP Initial Installation Work; and provided,
further, that the Building Systems through which any services which are
required to be provided by Landlord to the Second Additional Office Premises
under the Lease, as modified hereby, are also available in the Second
Additional Office Premises (or in locations outside of the Second Additional
Office Premises, if so provided under the Lease, as modified hereby) and
capable of providing the services that they are designed to provide, so that,
upon completion of such Tenant’s SAOP Initial Installation Work (or upon
completion of certain temporary or interim work by Tenant which is necessary to
provide electricity and/or chilled water service to the Second Additional
Office Premises during the construction period), such services can be provided
by Landlord as required hereunder. Landlord shall, subject to the terms, covenants
and conditions of Article 22 of this Agreement, nevertheless perform all work
(“Landlord’s SAOP Punch List Work”) required in order to complete such punch
list items within thirty (30) days of the SAOP Commencement Date.

                    C.
Landlord shall, in accordance with the foregoing, fix the SAOP
Commencement Date and notify Tenant of the date so fixed. When the SAOP
Commencement Date has so been determined, the parties hereto shall, within
thirty (30) days thereafter, at the request of either Landlord or Tenant,
execute a written agreement confirming such date as the SAOP Commencement Date.
Any failure of the parties to execute such written agreement shall not affect
the validity of the SAOP Commencement Date as fixed and determined by Landlord,
as aforesaid. Any dispute regarding the occurrence of the SAOP Commencement
Date shall be resolved by arbitration in accordance with the provisions of
Article 41 of the Original Lease, as modified hereby.

                    D.
Tenant by entering into occupancy of the Second Additional Office Premises
shall be conclusively deemed to have agreed that Landlord had substantially
completed Landlord’s SAOP Work, unless within twenty (20) days after the date
of such occupancy Tenant shall give written notice (hereinafter called the
“SAOP Punch List Notice”) to Landlord specifying the respects in which the same
were not in satisfactory condition. The giving of the SAOP Punch List Notice
shall have no effect whatsoever upon the SAOP Commencement Date.

                    E.
(i) Tenant acknowledges that it has been advised that a portion of the 15th
Floor Portion is currently leased to another tenant (the “15th Floor
Portion Existing Tenant”), pursuant to a certain lease with Landlord (the “15th
Floor Existing Lease”), the term of which is scheduled to expire on December
31, 2012. Tenant further acknowledges and agrees that Landlord shall have no
liability to Tenant whatsoever (and the provisions of paragraph F shall not be
applicable) in the event that the SAOP Commencement Date is delayed due to the
fact that the 15th Floor Portion Existing Tenant holds over in the
demised premises under the 15th Floor Existing Lease (the “15th
Floor EL Demised Premises”) after such scheduled expiration date of the 15th
Floor Portion Existing Lease. However, in the event of such a holdover,
Landlord shall use commercially reasonable efforts to obtain vacant possession
of the 15th Floor EL Demised Premises, including, without
limitation, the commencement and diligent prosecution of a summary holdover
dispossess proceeding against the 15th Floor Portion Existing
Tenant.

3

                              (ii)
Notwithstanding anything contained herein to the contrary, in the event that
the 15th Floor Portion Existing Tenant holds over in the 15th
Floor EL Demised Premises and such holdover continues past December 31, 2012
despite the exercise by Landlord of commercially reasonable efforts to obtain
vacant possession of such space, then the SAOP Commencement Date shall occur
when Landlord delivers possession of the 18th Floor Portion and the
19th Floor Portion to Tenant in accordance with the provisions of
paragraphs A and B of this Article (but in no event prior to April 1, 2013), in
which case Tenant’s obligations under the Lease, as modified hereby, with
respect to the 15th Floor Portion, including, without limitation,
the obligations to pay fixed annual rent, real estate tax and operating expense
escalation additional rent and electricity charges with respect to such space,
shall not commence unless and until Landlord delivers possession of the entire
15th Floor Portion in accordance with the provisions of said
paragraphs A and B of this Article (but in no event prior to April 1, 2013). In
this regard, it is acknowledged that the fixed annual rental rates set forth in
Article 4A of this Agreement shall be reduced by $681,722.00 per annum (based
on a rate of $43.00 per rentable square foot per annum), and “The Percentage”
for purposes of calculating real estate tax and operating expense escalation
additional rent shall be reduced by .5827 percent (.5827%), until Landlord
delivers possession of the 15th Floor Portion to Tenant in
accordance with said paragraphs A and B of this Article (subject, however, to
Tenant’s right to defer the SAOP Commencement Date and the corresponding
increase in such fixed annual rental rate, as set forth in paragraph A of this
Article and paragraph C of Article 4 below; and subject, also, to the 12-month
free rent period between the SAOP Commencement Date and the SAOP Rent
Commencement Date, to which Tenant shall also be entitled with respect to the
15th Floor Portion when it is so delivered to Tenant).

                    F.
(i) If, for any reason, Landlord fails to cause the SAOP Commencement Date (as
same may be affected by paragraph E of this Article) to occur on or before the
date (the “First SAOP Outside Date”) which is fourteen (14) months after the
date this Agreement is executed and delivered by Landlord and Tenant, then,
notwithstanding anything contained hereinabove to the contrary, the SAOP Rent
Commencement Date (as such term is defined in Article 4A of this Agreement)
shall be extended by one (1) day for each day after the First SAOP Outside Date
that Landlord fails to cause the SAOP Commencement Date to occur; provided,
however, that if Landlord fails to cause the SAOP Commencement Date to occur on
or before the Self Help SAOP Outside Date (as such term is defined in Article
3F(ii) of this Agreement), then, notwithstanding anything contained hereinabove
to the contrary, the SAOP Rent Commencement Date shall be extended by two (2)
days for each day after the Self Help SAOP Outside Date that Landlord fails
cause the SAOP Commencement Date to occur.

                              (ii)
If, for any reason, Landlord fails to cause the SAOP Commencement Date (as same
may be affected by paragraph E of this Article) to occur on or before the date
(the “Self Help SAOP Outside Date”) which is sixteen (16) months after the date
this Agreement is executed and delivered by Landlord and Tenant, then, Tenant
(without any obligation to do so) may give Landlord written notice (“Tenant’s
SAOP Self Help Notice”) that, unless Landlord causes the SAOP Commencement Date
to occur within ten (10) days after such notice shall have been given, Tenant
intends to perform any and all work necessary to complete Landlord’s SAOP Work
and/or otherwise cause the SAOP Commencement Date to occur. Any such work by
Tenant shall be performed in accordance with all applicable laws, rules and regulations
and all applicable provisions of the Lease, as modified hereby, other than any
such 

4

provisions requiring Landlord’s prior approval with respect to any
alterations by Tenant. Tenant agrees that Tenant’s SAOP Self Help Notice shall
specify (in bold face type and capital letters) that in the event Landlord does
not cause the SAOP Commencement Date to occur within such ten (10) day period,
then Tenant may exercise its “self-help” rights under this subparagraph (ii).
Tenant shall provide Landlord with reasonable written proof of the
out-of-pocket costs incurred by Tenant in connection with the work performed by
Tenant pursuant to this subparagraph (ii), and Landlord shall reimburse Tenant
for such costs within thirty (30) days after Landlord’s receipt of such proof.
In the event that Landlord fails to reimburse Tenant all or any part of such
costs within such thirty (30) day period, then Tenant shall be entitled to a
rent credit (i.e., Tenant may offset the amount of such reimbursement due
Tenant against rent) in the amount of the portion of such reimbursement that
Landlord has failed to pay Tenant (within such thirty (30) day period), with
interest at the Applicable Rate from the date such sums were to have been
reimbursed or paid to Tenant until the date recovered in full by Tenant. Such
rent credit shall be applied, until fully depleted, against the next fixed
annual rent payable under the Lease, as modified hereby. If Tenant shall
exercise its self-help rights under this subparagraph (ii), then (1) any
extension of the SAOP Rent Commencement Date to which Tenant is then entitled
under subparagraph (i) above shall only continue until the earlier to occur of
(x) the date that Tenant substantially completes Landlord’s SAOP Work or (y)
the date (as the same may be extended by any of the causes set forth in Article
22A(i) of the Original Lease) on which Tenant, using commercially reasonable
efforts to complete Landlord’s SAOP Work, should have completed such work, and
(2) Tenant shall no longer have the right to terminate this Agreement pursuant
to subparagraph (iii) below.

                              (iii)
If, for any reason, Landlord fails to cause the SAOP Commencement Date (as same
may be affected by paragraph E of this Article) to occur on or before the date
(the “Second SAOP Outside Date”) which is eighteen (18) months after the date
this Agreement is executed and delivered by Landlord and Tenant, and Tenant
shall not have elected to use self-help pursuant to subparagraph (ii) above,
then, notwithstanding anything contained hereinabove to the contrary, Tenant
may elect by written notice given to Landlord at any time after the Second SAOP
Outside Date to terminate this Agreement, and unless Landlord causes the SAOP
Commencement Date to occur within ten (10) days after Tenant gives such notice
to Landlord, then this Agreement shall be deemed terminated and the parties
shall have no further obligations or liabilities to each other hereunder,
except those expressly stated to survive the expiration or earlier termination
of this Agreement (but the Lease shall remain in full force and effect in
accordance with its terms).

                              (iv)
Notwithstanding the foregoing, the First SAOP Outside Date, the Self Help SAOP
Outside Date and the Second SAOP Outside Date shall each be extended, for no
more than thirty (30) days in the aggregate, by one day for each day that the
performance of Landlord’s SAOP Work is delayed as a result of any of the causes
set forth in Article 22A(i) of the Original Lease.

          4. A. (i)
Subject to the provisions of paragraph C of this Article, Tenant shall pay
Landlord fixed annual rent for the Second Additional Office Premises,
commencing on the SAOP Rent Commencement Date, and otherwise in accordance with
Article 2A of the Lease, except that such fixed annual rent shall be payable at
the following rates: 

5

	
  

 	
  

 
	
  

 	
 $5,108,056.00 per annum ($425,671.33 per month) from the SAOP Rent
 Commencement Date through the last day of the fifth SAOP Lease Year (as such
 term is defined in Article 4B of this Agreement);

 
	
  

 	
  

 
	
  

 	
 $5,583,224.00 per annum ($465,268.67 per month) from the first day of
 the sixth SAOP Lease Year through the last day of the tenth SAOP Lease Year;
 and

 
	
  

 	
  

 
	
  

 	
 $6,058,392.00 per annum ($504,866.00 per month) from the first day of
 the eleventh SAOP Lease Year through January 31, 2030.

 

Should the SAOP Rent Commencement Date occur on any day other than the
first day of a month, then the fixed annual rent for the unexpired portion of
such month shall be adjusted and prorated on a per
diem basis based on the actual number of days in said month.

                              (ii)
The term “SAOP Rent Commencement Date” when used in this Agreement shall mean
the date which is twelve (12) months after the SAOP Commencement Date, as such
date may be extended pursuant to Article 3F(i) of this Agreement.

                    B.
The term “SAOP Lease Year” when used in this Agreement shall mean
the twelve (12) months commencing on the SAOP Rent Commencement Date (or if the
SAOP Rent Commencement Date is not the first day of a month, the first day of
the month following the month in which occurs the SAOP Rent Commencement Date)
and each subsequent period of twelve (12) months. The first SAOP Lease Year
shall include the period, if any, from the SAOP Rent Commencement Date to the
end of the month in which the SAOP Rent Commencement Date occurs.

                    C.
In the event Tenant exercises its option to defer the SAOP
Commencement Date pursuant to Article 3A of this Agreement, then the fixed
annual rental rates set forth in subparagraph A(i) of this Article shall not be
applicable and Tenant shall pay Landlord fixed annual rent for the Second
Additional Office Premises, commencing on the SAOP Rent Commencement Date, at
the following rates:

                              (i)
in the event of a one (1) month deferment of the SAOP
Commencement Date:

	
  

 	
  

 
	
  

 	
 $5,137,754.00 per annum ($428,146.17 per month) from the SAOP Rent
 Commencement Date through the last day of the fifth SAOP Lease Year;

 
	
  

 	
  

 
	
  

 	
 $5,612,922.00 per annum ($467,743.50 per month) from the first day of
 the sixth SAOP Lease Year through the last day of the tenth SAOP Lease Year;
 and

 
	
  

 	
  

 
	
  

 	
 $6,088,090.00 per annum ($507,340.83 per month) from the first day of
 the eleventh SAOP Lease Year through January 31, 3030; and

 

                              (ii)
in the event of a two (2) month deferment of the SAOP Commencement Date:

6

	
  

 	
  

 
	
  

 	
 $5,203,089.60 per annum ($433,590.80 per month) from the SAOP
 Commencement Date through the last day of the fifth SAOP Lease Year;

 
	
  

 	
  

 
	
  

 	
 $5,678,257.60 per annum ($473,188.13 per month) from the first day of
 the sixth SAOP Lease Year through the last day of the tenth SAOP Lease Year;
 and

 
	
  

 	
  

 
	
  

 	
 $6,153,425.60 per annum ($512,785.47 per month) from the first day of
 the eleventh SAOP Lease Year through January 31, 2030; and

 
	
  

 	
  

 
	
                               (iii)
 in the event of a three (3) month deferment of the SAOP Commencement Date:

 
	
  

 	
  

 
	
  

 	
 $5,280,304.40 per annum ($440,025.37 per month) from the SAOP Rent
 Commencement Date through the last day of the fifth SAOP Lease Year;

 
	
  

 	
  

 
	
  

 	
 $5,755,472.40 per annum ($479,622.70 per month) from the first day of
 the sixth SAOP Lease Year through the last day of the tenth Lease Year; and

 
	
  

 	
  

 
	
  

 	
 6,230,640.40 per annum ($519,220.03 per month) from the first day of
 the eleventh SAOP Lease Year through January 31, 2030; and

 
	
  

 	
  

 
	
                               (iv)
 in the event of a four (4) month deferment of the SAOP Commencement Date:

 
	
  

 	
  

 
	
  

 	
 $5,363,458.80 per annum ($446,954.90 per month) from the SAOP Rent
 Commencement Date through the last day of the fifth SAOP Lease Year;

 
	
  

 	
  

 
	
  

 	
 $5,838,626.80 per annum ($486,552.23 per month) from the first day of
 the sixth SAOP Lease Year through the last day of the tenth SAOP Lease Year;
 and

 
	
  

 	
  

 
	
  

 	
 $6,313,794.80 per annum ($526,149.57 per month) from the first day of
 the eleventh SAOP Lease Year through January 31, 3030.

 

          5. Tenant
shall pay Landlord operating expense escalation additional rent for the Second
Additional Office Premises, in accordance with Article 2B of the Original
Lease, except that the term “Base Year” shall mean the calendar year 2013; the
term “The Percentage” shall mean 4.3664 percent (4.3664%); and the term
“comparative year” shall mean the calendar year 2014, and each twelve (12)
month period thereafter, in which occurs any part of the term of the Lease, as
modified hereby, with respect to the Second Additional Office Premises;
provided, however, that in the event that the SAOP Commencement Date shall not
occur by or before the First SAOP Outside Date (other than due to a deferral of
the SAOP Commencement Date pursuant to Article 3A of this Agreement), then the
“Base Year” shall mean the twelve (12) month period commencing on the SAOP
Commencement Date, and the “comparative year” shall mean the twelve (12) month
period immediately following such Base Year, and each twelve (12) month period
thereafter, in which occurs any part of the term of the Lease, as modified
hereby, 

7

with respect to the Second Additional Office Premises; provided,
further, that if the SAOP Commencement Date does not occur on the first day of
a month, then the “Base Year” shall mean as follows: (i) the twelve (12) month
period beginning on the first day of the month in which the SAOP Commencement
Date occurs, if the SAOP Commencement Date occurs on or before the fifteenth
day of such month, or (ii) the twelve (12) month period beginning on the first
day of the month following the month in which the SAOP Commencement Date
occurs, if the SAOP Commencement Date occurs after the fifteenth day of the
month in which such date occurs; and the “comparative year” shall mean the
twelve (12) month period immediately following such Base Year, and each twelve
(12) month period thereafter, in which occurs any part of the term of the
Lease, as modified hereby, with respect to the Second Additional Office
Premises (subject, however, to the provisions of Article 2G of the Original
Lease with respect to any partial comparative year in which the SAOP
Commencement Date or the scheduled expiration date or sooner termination of the
term of the Lease, as modified hereby, occurs). The rent credit set forth in
the last sentence of Article 2B(ii) of the Original Lease shall not be
applicable to the Second Additional Office Premises.

          6. Tenant
shall pay Landlord real estate tax escalation additional rent for the Second
Additional Office Premises, in accordance with Article 2C of the Original
Lease, except that the term “base tax year” shall mean the New York City real
estate tax year commencing July 1, 2013 and ending June 30, 2014; the term “The
Percentage” shall mean 4.3664 percent (4.3664%); and the term “comparative
year” shall mean the New York City real estate tax year commencing July 1, 2014
and ending June 30, 2015, and each subsequent period of twelve (12) months (or
such other period of twelve (12) months occurring during the term of the Lease,
as modified hereby, as hereafter may be duly adopted as the tax year for real
estate tax purposes by the City of New York). The rent credit set forth in the
last sentence of Article 2C(ii)(a) of the Original Lease shall not be
applicable to the Second Additional Office Premises. However, notwithstanding
the foregoing, if the SAOP Commencement Date shall not occur until after the
First SAOP Outside Date (other than due to a deferral of the SAOP Commencement
Date pursuant to Article 3A of this Agreement), then Tenant shall be entitled
to a rent credit in the amount of all real estate tax escalation additional
rent due under the Lease, as modified hereby, with respect to the Second
Additional Office Premises for the period from July 1, 2014 through the date
which is fifteen (15) months after the SAOP Commencement Date; and provided,
further that if the SAOP Commencement Date shall not occur by or before the
date which is nine (9) months after the First SAOP Outside Date (other than due
to a deferral of the SAOP Commencement Date pursuant to Article 3A of this
Agreement), then the “base tax year” for the Second Additional Office Premises
shall be the calendar year 2014, and the comparative year for such space shall
be the calendar year 2015 and each subsequent period of twelve (12) months in
which occurs any part of the term of the Lease, as modified hereby, with
respect to such space.

          7.
Landlord shall redistribute and furnish electricity to Tenant for
the Second Additional Office Premises, on a submetering basis, in accordance
with the provisions of Article 3 of the Original Lease, except as follows:

                    A.
Landlord shall perform such work (“Landlord’s SAOP Submetering Work”) as is
necessary to furnish redistributed electricity to the Second Additional Office
Premises on a submetering basis. Such work shall include, without limitation,
the installation of 

8

a submeter or submeters and the connection of such submeter or
submeters to the electrical panels for the Second Additional Office Premises
(it being acknowledged and agreed, however, that such work that is necessary to
connect the submeter(s) to such electrical panels may not be performed by
Landlord unless and until Tenant performs such work as is necessary to connect
Tenant’s local electrical distribution to such panels (“Tenant’s SAOP
Electrical Panel Work”)). Landlord shall perform Landlord’s SAOP Submetering
Work at its sole cost and expense, except that Tenant shall reimburse Landlord
for the cost of connecting more than a total of twenty-four (24) electrical
panels to such submeter or submeters, which sums shall be deemed additional
rent under the Lease, as modified hereby, and due within thirty (30) days after
demand. Landlord shall, subject to the terms, covenants and conditions of
Article 22 of this Agreement, complete Landlord’s SAOP Submetering Work within
thirty (30) days after Landlord receives notice from Tenant that Tenant has
completed Tenant’s SAOP Electrical Panel Work (and Tenant has in fact completed
such work). If Landlord’s SAOP Submetering Work has not been completed by the
SAOP Commencement Date (so that Landlord may not yet furnish electricity to the
Second Additional Office Premises on a submetering basis), then Tenant shall
pay, for the distribution of electric power and use of Landlord’s facilities to
provide electrical power to the Second Additional Office Premises, a charge equal
to the amount that results from (i) multiplying $1.25 by the number of rentable
square feet within the Second Additional Office Premises (i.e., 118,792), (ii)
dividing the result of (i) by 360, and then (iii) multiplying the result of
(ii) by the number of days, if any, until the appropriate submeter(s) are
installed and are properly functioning; provided, however, that if Landlord’s
SAOP Submetering Work has not been completed by the date that Tenant occupies
all or any part of the Second Additional Office Premises for the conduct of its
business, as a result of the failure of Tenant to complete Tenant’s SAOP
Electrical Panel Work or any other act or omission of Tenant, its agents,
employees or contractors that actually delays the completion of Landlord’s SAOP
Submetering Work, then the foregoing charge shall be changed as follows: the
reference to “$1.25” shall be changed to “$3.45”, effective as of such date
that Tenant occupies all or any part of the Second Additional Office Premises
for the conduct of its business.

                    B.
The electrical capacity which Landlord shall be obligated to provide to the
Second Additional Office Premises, for all purposes other than any Building
air-conditioning systems and equipment and any other Building Systems servicing
the Second Additional Office Premises, shall be the SAOP Electrical Capacity,
as hereinafter defined (and not the 6 watts per rentable square foot of demand
load described in Article 3C(ii) of the Original Lease). The term “SAOP
Electrical Capacity” when used herein, initially, shall mean the electrical
capacity which is currently available in the Second Additional Office Premises
for Tenant’s use (for all purposes other than such Building air-conditioning
equipment and Building Systems) as of the date of this Agreement; provided,
however, that if at any time after the date of this Agreement Tenant shall
provide Landlord with a “load letter” from Tenant’s engineer or from a
reputable electrical consultant which substantiates (to the reasonable satisfaction
of Landlord) Tenant’s need for any additional electrical capacity for its
operations in the Second Additional Office Premises, then Landlord, at
Landlord’s sole cost and expense, and subject to the terms, covenants and
conditions of Article 22 of this Agreement, shall perform all such work
(collectively, “Landlord’s SAOP Additional Electrical Capacity Work”) as is
necessary to provide such additional electrical capacity to the Second
Additional Office Premises (at the existing electrical panels or then existing
electrical busways located on each applicable floor, as determined by 

9

Landlord) and the “SAOP Electrical Capacity” shall be the total of such
increased electrical capacity which is then available to the Second Additional
Office Premises, provided that in no event shall the SAOP Electrical Capacity
ever exceed six (6) watts per usable square foot of demand load (based on a
usable square foot area of 88,862 square feet). Subject to the terms, covenants
and conditions of Article 22 of this Agreement, Tenant agrees that such
additional electrical capacity may be obtained from any excess capacity then
available in the Original Demised Premises or the First Additional Office
Premises.

          8. A.
Tenant expressly acknowledges that it has inspected the Second Additional
Office Premises and agrees to accept the Second Additional Office Premises
broom clean but otherwise in their “as is” condition, subject to Landlord’s
obligation to perform Landlord’s SAOP Work pursuant to Article 8B of this
Agreement. Tenant acknowledges that Landlord (i) has made no representation
respecting the physical condition of the Second Additional Office Premises and
(ii) shall have no obligation to do any work in and to the Second Additional
Office Premises in order to make them suitable and ready for occupancy and use
by Tenant, except as otherwise specifically provided in this Article.

                    B.
Landlord, at its expense, shall perform the following work (“Landlord’s SAOP
Work”) in order to prepare the Second Additional Office Premises for Tenant’s
use and occupancy and as a condition precedent to the SAOP Commencement Date
(except for the work set forth in the second sentence of subparagraph (ii)
below, which work, if necessary, will not occur until after the SAOP
Commencement Date):

                              (i)
Landlord shall perform demolition work in the Second Additional Office
Premises, including removal of ceiling, ductwork (except for duct work which
services other space in the Building), lighting and flooring, so as to create a
“slab to slab” condition in the Second Additional Office Premises.

                              (ii)
Landlord shall perform all work necessary to remove all asbestos from the
Second Additional Office Premises (other than shafts that run through the core
of the Building), and will obtain and provide to Tenant a duplicate original
counterpart of a Form ACP-5 and/or ACP-7 (as appropriate) for the Second
Additional Office Premises. If during the performance of Tenant’s SAOP Initial
Installation Work, Tenant discovers any asbestos containing materials within
the Second Additional Office Premises (a) that is required by law to be removed
in connection with such work or (b) that is located within the shafts that run
through the Second Additional Office Premises (excluding the core of the
Building, other than piping and duct work required for tie-ins or connections,
which shall be abated as herein provided), then Landlord shall promptly remove
such asbestos containing materials at Landlord’s sole cost and expense. All
work required to be performed by Landlord pursuant to the subparagraph (ii) is
hereinafter referred to, collectively, as “Landlord’s SAOP Asbestos Removal
Work.” If Landlord is required to perform Landlord’s SAOP Asbestos Removal Work
pursuant to this subparagraph (ii) at any time after the occurrence of the SAOP
Commencement Date but before the occurrence of the SAOP Rent Commencement Date,
then, notwithstanding anything contained hereinabove to the contrary, the SAOP
Rent Commencement Date shall be extended on a day-for-day basis for each day
Landlord is performing such work and such performance actually delays the
completion of Tenant’s SAOP Initial Installation Work; it being understood and
agreed, however, that if Tenant is entitled to such an extension of the SAOP
Rent 

10

Commencement Date, the same shall continue until Landlord has completed
Landlord’s SAOP Asbestos Removal Work (including, without limitation, obtaining
any sign-offs or approvals that are required for Tenant to legally use the
Second Additional Office Premises) and has vacated the Second Additional Office
Premises. If Landlord is required to perform Landlord’s SAOP Asbestos Removal
Work pursuant to this subparagraph (ii) after the occurrence of the SAOP Rent
Commencement Date, then, notwithstanding anything contained hereinabove to the
contrary, all fixed annual rent, operating expense escalation additional rent
and real estate tax escalation additional rent attributable to the portion of
the Second Additional Office Premises that Tenant is unable to use or occupy
during the performance of such work by Landlord shall be equitably and
proportionately abated until Landlord has completed Landlord’s SAOP Asbestos
Removal Work (including, without limitation, obtaining any sign-offs or
approvals that are required for Tenant to legally use the Second Additional
Office Premises) and has vacated the Second Additional Office Premises.

                              (iii)
Landlord shall flash patch the floors of the Second Additional
Office Premises where necessary and perform all work necessary to cause the
floors to be reasonably smooth and reasonably flat in accordance with industry
standards.

                              (iv)
Landlord shall perform all work necessary to provide Tenant with
adequate points of connection to the Building’s Class E fire alarm system, but
in no event fewer than (x) ten (10) such points in a location or locations on
the 18th Floor Portion, (y) ten (10) such points in a location or
locations in the 19th Floor Portion, and (z) four (4) such points in
a location or locations in the 15th Floor Portion, so that Tenant
may connect the fire alarm system for the Second Additional Office Premises to
such Building System. Any modifications, upgrades, additional panels, devices
or equipment shall be furnished and installed by Tenant.

                              (v)
Landlord shall effect all work necessary to provide a stand pipe connection to
the Building’s sprinkler system, in a location designated by Landlord in each
of the 18th Floor Portion and the 19th Floor Portion, so
that Tenant may provide sprinkler service in such portions of the Second
Additional Office Premises (it being acknowledged that there is already a
standpipe connection to the Building’s sprinkler system on the 15th
floor of the Building). Tenant, as part of Tenant’s SAOP Initial Installation
Work, shall effect all work necessary to distribute such sprinkler service
throughout the Second Additional Office Premises.

                              (vi)
Landlord shall install fireproofing and stopping at all locations required by
code and perform all other work in and to the Second Additional Office Premises
so that such space may be delivered by Landlord to Tenant in compliance with
all applicable laws, rules and regulations and free of any violations of
record.

                              (vii)
Landlord shall (a) install new, Building standard radiator convector covers and
grills so that the same are primed and ready for painting and (b) perform all
work necessary to cause the existing radiators in the Second Additional Office
Premises to be in good working order.

                              (viii)
Landlord shall effect all work necessary to cause the elevator call buttons,
lanterns, doors (including the hardware thereon) and service closets in the 18th
Floor Portion and the 19th Floor Portion or which service the Second
Additional Office Premises (whether or not in the Second Additional Office
Premises) to comply with the requirements of 

11

the ADA.

                              (ix)
Landlord shall perform all work necessary to provide to Tenant
the existing electric closets located on each of the 18th Floor Portion and the
19th Floor Portion stripped with main feeds in place.

                              (x)
Landlord shall install new, Building standard radiator valves
which are compatible with the Building’s direct digital control system.

Landlord shall perform Landlord’s SAOP Work in a good and workerlike
manner, and in a prompt and expeditious fashion after this Agreement has been
executed and delivered by Landlord and Tenant.

                    C.
(i) Tenant, at its expense (except as provided in subparagraph (iii) below),
shall perform all other work (“Tenant’s SAOP Initial Installation Work”) in and
to the Second Additional Office Premises as is necessary for Tenant to conduct
its business therein, and in order to make such space suitable and ready for
Tenant’s initial occupancy and use. Tenant shall perform Tenant’s SAOP Initial
Installation Work in a prompt and expeditious manner following the SAOP
Commencement Date, in accordance with the provisions of Article 8 of the
Original Lease, this Article and all other applicable provisions of the Lease,
as modified hereby, and in compliance with all applicable laws, rules and
regulations.

                              (ii)
Tenant shall submit to Landlord for Landlord’s approval, which approval shall
not be unreasonably withheld, conditioned or delayed with respect to nonstructural
interior alterations which do not adversely affect the proper functioning of
utility services, plumbing and electrical lines or other systems of the
Building (collectively, “Building Systems”), a full set of architectural and
engineering plans and specifications (including architectural plans and
specifications comprised of partition plans, reflected ceiling plans as well as
air conditioning, heating and all other mechanical drawings and electric plans)
in form suitable for filing with the appropriate agencies of the City of New
York to obtain such alteration or building permit to perform Tenant’s SAOP
Initial Installation Work. If Landlord withholds its approval of the plans and
specifications (in accordance with the foregoing), Landlord shall specify in
reasonable detail the basis for withholding such approval and Tenant shall make
appropriate modifications to the plans and specifications to correct or
eliminate the objections specified by Landlord in such disapproval and shall
resubmit the modified plans and specifications to Landlord within a reasonable
period of time after they are returned to Tenant unapproved. If Landlord fails
to respond to any such request for approval within ten (10) days after such
plans and specifications shall have been given to Landlord, Tenant may send
Landlord a second request for approval of such plans and specifications. If
Landlord fails to respond to such second request for approval within five (5)
Business Days after the same shall have been given to Landlord, then Landlord
shall be deemed to have approved such plans and specifications (provided such
second request specifies in bold face type and capital letters that Landlord
shall be deemed to have approved such plans and specifications if it fails to
respond to such second request within such five (5) Business Day period). The
terms and provisions set forth in this subparagraph (ii) governing the approval
and disapproval of plans and specifications shall apply equally to approving
and disapproving revised plans and specifications and all change orders. No
work may be performed without Landlord’s prior approval of the plans and 

12

specifications and all contractors and sub-contractors engaged to
perform Tenant’s SAOP Initial Installation Work. No such work shall be
commenced without the plans and specifications therefor having been approved by
Landlord and the appropriate permits and approvals therefor having been issued
by the City of New York Department of Buildings and any other governmental
agency having jurisdiction thereof. Approval by Landlord of any plans or
specifications shall not be deemed to constitute a warranty or representation
that such plans or specifications shall conform to applicable laws and
regulations or shall be approved by the Department of Buildings or any other
governmental agency. At Tenant’s request, Landlord shall execute all required
permit applications and other forms upon submission of Tenant’s plans and
specifications by Tenant but prior to Landlord’s review of same, but execution
of such forms by Landlord shall not constitute approval of the alterations in
question.

                              (iii)
Landlord shall provide Tenant an allowance of up to $8,079,874.00 to defray the
cost of construction of any Tenant’s SAOP Initial Installation Work which is
performed prior to the fourth anniversary of the SAOP Commencement Date. Such
sum (“Landlord’s SAOP Contribution”) shall be payable (as hereinafter provided)
against requisitions therefor accompanied by (a) the certification by Tenant’s
architect that the work described on such requisition has been completed
substantially in accordance with the plans and specifications theretofor
approved (or deemed approved) by Landlord, (b) a list specifying the work
performed for which such requisition is being submitted and (c) partial
conditional waivers of mechanics liens for all work for which such installment
of Landlord’s SAOP Contribution has been requisitioned, and partial
unconditional waivers of mechanics liens for all work for which payments were
made by Landlord with respect to previous requisitions, from each contractor,
sub-contractor, vendor and supplier of labor and materials for whom and to the
extent such installment of Landlord’s SAOP Contribution is being requisitioned;
it being agreed, however, that Tenant shall not be required to submit such lien
waivers for (x) any such contractor or subcontractor performing work the cost
of which shall be less than $10,000.00, or (y) for any such vendor or supplier
providing materials the cost of which (in the aggregate for the entire job, and
not for such installment) shall be less than $250,000.00. Payments on account
of Landlord’s SAOP Contribution shall not be payable more frequently than
monthly. Each such installment of Landlord’s SAOP Contribution shall be equal
to (1) the total amount of Landlord’s SAOP Contribution requisitioned by Tenant
as of the date of the most recent requisition (including the amount of the most
recent requisition), less (2) the total amount of Landlord’s SAOP Contribution
paid to Tenant as of the date the most recent requisition. To illustrate such
calculation, and assuming, for example, that the total of all requisitions
submitted by Tenant (including the most recent requisition) is $100,000, of
which $60,000 has been paid to Tenant, and $40,000 is the unpaid amount of the
most recent requisition, then the amount of such installment shall be $40,000,
calculated as follows: (1) $100,000, less (2) $60,000, equals $40,000.
Notwithstanding anything contained herein to the contrary, no portion of
Landlord’s SAOP Contribution shall be applied by Tenant against expenses for
furniture, office equipment or other personal property, and not more than
$1,211,981.00 may be applied by Tenant for architectural and engineering fees
or other soft costs relating to Tenant’s SAOP Initial Installation Work (which
payments of Landlord’s SAOP Contribution for such architectural and engineering
fees and other soft costs shall be made by Landlord upon Tenant’s submission of
invoices therefor (whether before or after the SAOP Commencement Date) which
have been approved for payment by an officer of Tenant, anything contained
herein to the contrary 

13

notwithstanding). Any dispute regarding Landlord’s SAOP Contribution
shall be resolved by expedited arbitration in accordance with the provisions of
Article 41 of the Original Lease. In the event that any such dispute shall be
resolved in Tenant’s favor, so that Landlord shall be obligated to pay Tenant
all or any part of Landlord’s SAOP Contribution, but Landlord fails to do so
within fifteen (15) days after such decision is rendered in such arbitration
proceeding, then Tenant shall be entitled to a rent credit (i.e., Tenant may
offset such amount due Tenant against rent) in the amount of the portion of
Landlord’s SAOP Contribution which Landlord has failed to pay Tenant (within
such fifteen (15) day period) in accordance with the decision in such
arbitration proceeding, with interest at the Applicable Rate from the date such
sums were to have been reimbursed or paid to Tenant from Landlord’s SAOP
Contribution until the date recovered in full by Tenant, and with all
reasonable legal fees incurred by Tenant in connection with such dispute
(provided Tenant furnishes Landlord with paid invoices or other reasonably
sufficient evidence of such fees). Such rent credit shall be applied, until
fully depleted, against the next fixed annual rent payable under the Lease, as
modified hereby. As an inducement to Tenant to execute and deliver this
Agreement, Landlord shall deposit in escrow with Landlord’s attorneys, David J.
Bleckner, P.C. (“Escrowee”), concurrently with the execution and delivery of
this Agreement by Landlord and Tenant, the sum of $8,079,874.00 to be held by
Escrowee as security for the payment of Landlord’s SAOP Contribution to Tenant,
in accordance with the terms, covenants and conditions of that certain letter
agreement of even date herewith among Landlord, Tenant and Escrowee, a copy of
which is attached hereto and made a part hereof as Exhibit D.

                              (iv)
The installation or connection to the Building systems of each
item of Tenant’s property and systems shall be performed at Tenant’s expense
(subject to subparagraph (iii) above) and, unless otherwise provided in the
Lease, as modified hereby, by Tenant using contractors approved by Landlord in
accordance with the applicable provisions of the Lease, as modified hereby.

                              (v)
Notwithstanding anything contained herein to the contrary, Tenant
shall maintain, at Tenant’s expense, in addition to any other insurance
required pursuant to the Lease, as modified hereby, with respect to
alterations, a Builders “All Risk” insurance policy (Broad Form) covering the
full replacement cost of Landlord’s SAOP Work and Tenant’s SAOP Initial
Installation Work and the materials and supplies delivered and stored in the
Second Additional Office Premises for the purpose of being incorporated in such
work.

                              (vi)
Notwithstanding anything contained herein to the contrary, Tenant
shall deliver to the Landlord final record drawings of Tenant’s SAOP Initial
Installation Work, including, as may be pertinent to the work performed, a
reflected ceiling plan, mechanical and electrical drawings, partition plan and
any other drawings which may be required to indicate accurately the layout and
systems of the Second Additional Office Premises. Tenant shall require its
architect to load and maintain such record plans on a CADD system and to deliver
diskettes or other medium suitable for Landlord’s needs and compatible, if
feasible, with Landlord’s computer applications, so as to enable Landlord to
use such CADD-saved plans.

                              (vii)
Landlord shall, at the request of Tenant, schedule the Building’s freight
elevator (or a passenger elevator converted for use as a freight elevator) for
Tenant’s 

14

move into the Second Additional Office Premises, after 6:00 p.m. and
before 7:00 a.m. on Business Days (and at any time on weekends). Such use shall
be subject to a prior reservation by another tenant and/or the need by Landlord
for the use of such elevator for other operating or construction purposes.
Notwithstanding anything contained in the Lease, as modified hereby, to the contrary,
in connection with Tenant’s SAOP Initial Installation Work and initial move-in
to the Second Additional Office Premises, it is agreed that Tenant shall not be
required to pay for the first eighty (80) hours of such freight elevator use on
an after-hours basis. Any other after-hours use of the freight elevator by
Tenant shall be subject to the applicable provisions of the Lease, including,
without limitation, Landlord’s standard charges therefor.

                              (viii)
Tenant agrees that Tenant’s SAOP Initial Installation Work shall include,
without limitation, all work necessary to tie all HVAC controls for the Second
Additional Office Premises into the Building’s direct digital control system.

                              (ix)
In connection with Tenant’s SAOP Initial Installation Work,
Landlord agrees that it shall sign Tenant’s Landmarks Louver application to
coincide with Tenant’s schedule in order to allow for an early Louver filing.
Upon submission of Tenant’s plans and specifications for Tenant’s SAOP Initial
Installation Work, as described in subparagraph (ii) above, Landlord shall
review the same for a Landmarks “no effect” filing, and shall sign the
application for such filing, within a period of five (5) days of Landlord’s receipt
of such plans and specifications, provided the final approved set of plans and
specifications which Tenant submits to the Building Department in connection
with its building permit application for Tenant’s SAOP Initial Installation
Work shall be consistent with any drawing included in such “no effect” filing.

                    D.
It is acknowledged and agreed that Tenant, at its expense (except as
hereinabove provided) and as part of Tenant’s SAOP Initial Installation Work,
shall provide, and shall effect all work (the “Tenant’s SAOP A/C Work”)
necessary to install, new chilled water cooled air-conditioning units for the
Second Additional Office Premises (the “SAOP A/C Units”), with a total cooling
capacity of 120 tons for each of the 18th Floor Portion and the 19th Floor Portion, and 35 tons for the 15th Floor Portion (for a total
cooling capacity in the Second Additional Office Premises of 275 tons), each of
which units shall be of equal or better quality to the current Building
standard air-conditioning unit, the York Floor Mounted Model Solution XTI.
Tenant’s SAOP A/C Work shall include, without limitation, (i) the connection of
the SAOP A/C Units to the Building Chilled Water and Warm Water Circulating
System, and (ii) all work necessary to install all associated duct work, fans,
diffusers and other equipment necessary to distribute air-conditioning service
throughout the Second Additional Office Premises from the SAOP A/C Units.

                    E.
It is acknowledged and agreed that Tenant, at its expense (except as
hereinabove provided) and as part of Tenant’s SAOP Initial Installation Work,
shall effect all work (the “SAOP Bathroom Renovation Work”) necessary to
renovate and refurbish all of the existing core bathrooms in each of the 18th
Floor Portion and the 19th Floor
Portion, so that the condition of, and quality of installation in, all such
bathrooms shall be at least equivalent to the condition of, and quality of
installation in, the core bathrooms located in 14th floor portion of
the Original Demised Premises as of the date of this Agreement.

15

                    F.
Reference is hereby made to the Environmental Design Guidelines set forth in
Exhibit B attached hereto and made a part hereof, which include certain
materials and/or items of work required in order to obtain LEED-CI designation
with respect to an office space construction project (it being understood and
agreed, however, that the intent of the Environmental Design Guidelines is to
optimize performance of the Second Additional Office Premises, not just to
obtain LEED-CI designation). Notwithstanding anything contained in the Lease,
as modified by this Agreement, to the contrary, Tenant shall (i) submit its
plans and specifications for Tenant’s SAOP Initial Installation Work to Landlord’s
project manager, Jones Lang LaSalle (“JLL”), concurrently with Tenant’s
submission of such plans and specifications to Landlord, and (ii) incorporate
into such plans and specifications as part of Tenant’s SAOP Initial
Installation Work such sustainability measures as are recommended by JLL to
Tenant (the “Recommended Sustainability Measures”); provided, however, that (a)
the Recommended Sustainability Measures shall be limited solely to the items
set forth in said Exhibit B, and JLL shall designate such Recommended
Sustainability Measures to Tenant in reasonable detail and within the same time
periods applicable to Landlord with respect to Tenant’s request for Landlord’s
approval of such plans and specifications (as such time periods are more particularly
set forth in Article 8C(ii) of this Agreement); (b) with respect to items A1,
A2 and A4 of the Environmental Design Guidelines, JLL demonstrates, to the
reasonable satisfaction of Tenant and Tenant’s consultants, that such
Recommended Sustainability Measures will result in the payback to, or the
recouping by, Tenant of the cost thereof over a period of not more than five
(5) years; (c) in no event shall the Recommended Sustainability Measures
materially delay the performance of Tenant’s SAOP Initial Installation Work (as
reasonably determined by Tenant); and (d) in no event shall Tenant be required
to perform any structural alterations, alterations to any of the Building
Systems or alterations outside of the Second Additional Office Premises, in connection
with the Recommended Sustainability Measures.

          9. A. (i)
Reference is hereby made to certain space on the 18th floor of the
Building, designated as Suites 18A-18C, which is approximately as shown on the
space diagram attached hereto and made a part hereof as Exhibit E (“18th
Floor Must Take Premises”). Tenant acknowledges that it has been advised that a
portion of the 18th Floor Must Take Premises is currently occupied
by a certain tenant (the “18th Floor Must Take Existing Tenant”) pursuant to a
certain lease with Landlord, the term of which is scheduled to expire on
December 31, 2018 (the 18th Floor Must Take Existing Lease”). It is
hereby agreed that the 18th Floor Must Take Premises shall be deemed
to be, and hereby is, added to the premises demised under the Lease, as
modified hereby, for a term commencing on the 18th Floor Must Take
Commencement Date (as such term is hereinafter defined) and ending on January
31, 2030, unless such term shall sooner terminate as in the Lease, as modified hereby,
provided. It is further acknowledged and agreed that, for all purposes under
the Lease, as modified hereby, the rentable square foot area of the 18th
Floor Must Take Premises shall be deemed to be 890 rentable square feet.

                              (ii)
The term “18th Floor Must Take Commencement Date” when used herein
shall mean the date on which the last of the following shall have occurred: (i)
Landlord delivers vacant possession of the 18th Floor Must Take
Premises to Tenant, free of any occupancies or tenancies, in broom clean
condition and free of any construction debris, materials and equipment and
otherwise in safe condition for the performance of Tenant’s 18th
Floor Must 

16

Take Initial Installation Work (as such term is hereinafter defined);
and (ii) Landlord substantially completes Landlord’s 18th Floor Must
Take Work (as such term is hereinafter defined); provided, however, that in no
event shall the 18th Floor Must Take Commencement Date occur prior
to April 1, 2013. Landlord shall use commercially reasonable efforts to cause
the 18th Floor Must Take Commencement Date to occur on the same date
as the SAOP Commencement Date, including, without limitation, by seeking to
relocate the 18th Floor Must Take Existing Tenant to other space in
the Building or by terminating the 18th Floor Must Take Existing
Lease prior to such date. However, if despite the exercise of such commercially
reasonable efforts by Landlord, Landlord is unable to cause the 18th
Floor Must Take Commencement Date to occur simultaneously with the SAOP
Commencement Date, then Landlord shall have no liability whatsoever to Tenant
in connection therewith, but Landlord shall give Tenant at least three (3)
months’ prior written notice of the date that Landlord reasonably anticipates
that the 18th Floor Must Take Commencement Date will actually occur.

                              (iii)
Landlord’s 18th Floor Must Take Work shall be deemed
to have been substantially completed despite the fact that minor insubstantial
details of construction and mechanical adjustments (i.e., “punch list items”)
remain to be completed, provided the 18th Floor Must Take Premises
are accessible and reasonably usable by Tenant for the purpose of effecting
Tenant’s 18th Floor Must Take Initial Installation Work; and
provided, further, that the Building Systems
through which any services which are required to be provided by Landlord to the
18th Floor Must Premises under the Lease, as modified hereby, are
also available in the 18th Floor Must Take Premises (or in locations
outside of the 18th Floor Must Take Premises, if so provided under
the Lease, as modified hereby) and capable of providing the services that they
are designed to provide, so that, upon completion of such Tenant’s 18th
Floor Must Take Initial Installation Work (or upon completion of certain
temporary or interim work by Tenant which is necessary to provide electricity
and/or chilled water service to the 18th Floor Must Take Premises
during the construction period), such services can be provided by Landlord as
required hereunder. Subject to the terms, covenants and conditions of Article
22 of this Agreement, Landlord shall nevertheless perform all work (“Landlord’s
18th Floor Must Take Punch List Work”) required in order to complete
such punch list items within thirty (30) days of the 18th Floor Must
Take Commencement Date.

                              (iv)
Landlord shall, in accordance with the foregoing, fix the 18th Floor
Must Take Commencement Date and notify Tenant of the date so fixed. When the 18th
Floor Must Take Commencement Date has so been determined, the parties hereto
shall, within thirty (30) days thereafter, at the request of either Landlord or
Tenant, execute a written agreement confirming such date as the 18th
Floor Must Take Commencement Date. Any failure of the parties to execute such
written agreement shall not affect the validity of the 18th Floor
Must Take Commencement Date as fixed and determined by Landlord, as aforesaid.
Any dispute regarding the occurrence of the 18th Floor Must Take
Commencement Date shall be resolved by arbitration in accordance with the
provisions of Article 41 of the Original Lease, as modified hereby.

                              (v)
Tenant by entering into occupancy of the 18th Floor Must Take Premises
shall be conclusively deemed to have agreed that Landlord had substantially
completed Landlord’s 18th Floor Must Take Work, unless within twenty
(20) days after the date of such occupancy Tenant shall give written notice
(hereinafter called the “18th Floor Must Take Punch

17

List Notice”) to Landlord specifying the respects in which the same
were not in satisfactory condition. The giving of the 18th Floor
Must Take Punch List Notice shall have no effect whatsoever upon the 18th
Floor Must Take Commencement Date.

                    B.
The 18th Floor Must Take Premises shall be leased to Tenant pursuant
to all of the same terms, covenants and conditions of the Lease, as modified
hereby, as are applicable to the Second Additional Office Premises, except as
follows:

                              (i)
Commencing on the date which is twelve (12) months after the 18th
Floor Must Take Commencement Date (the “18th Floor Must Take Rent
Commencement Date”), Tenant shall pay Landlord fixed annual rent for the 18th
Floor Must Take Premises at the following rates: $38,270.00 per annum
($3,189.17 per month) from the 18th Floor Must Take Rent
Commencement Date through the last day of the fifth SAOP Lease Year; $41,830.00
per annum ($3,485.83 per month) from the first day of the sixth SAOP Lease Year
through the last day of the tenth SAOP Lease Year; and $45,390.00 per annum
($3,782.80 per month) from the first day of the eleventh SAOP Lease Year
through January 31, 2030.

                              (ii)
Tenant shall pay Landlord operating expense escalation additional
rent for the 18th Floor Must Take Premises, in accordance with
Article 5 of this Agreement, except that “The Percentage” shall be .03271
percent (.03271%).

                              (iii)
Tenant shall pay Landlord real estate tax escalation additional
rent for the 18th Floor Must Take Premises, in accordance with
Article 6 of this Agreement, except that “The Percentage” shall be .03271
percent (.03271%).

                              (iv)
Landlord shall redistribute and furnish electricity to Tenant for
the 18th Floor Must Take Premises, on a submetering basis, in
accordance with the provisions of Article 7 of this Agreement, except that
Landlord shall have no obligation to perform any of the work described in
paragraph A of said Article 7 in the 18th Floor Must Take Premises
(it being understood and agreed that Landlord shall not be obligated to install
a separate submeter for such space, and that Tenant shall effect all work
necessary to connect Tenant’s local electrical distribution in such space to
the electrical panels on the 18th floor); and that the reference to
“88,862 usable square feet” in paragraph B of said Article 7 shall be deemed to
be “668 square feet” with respect to the 18th Floor Must Take
Premises. The SAOP Electrical Capacity shall be applicable to the 18th
Floor Must Take Premises.

                              (v)
Tenant expressly acknowledges that it has inspected the 18th
Floor Must Take Premises and agrees to accept the 18th Floor Must
Take Premises broom clean but otherwise in their “as is” condition as of the
date hereof, subject to reasonable wear and tear, damage by fire or other
casualty and Landlord’s obligation to perform Landlord’s 18th Floor
Must Take Work pursuant to the terms hereof. Tenant acknowledges that Landlord
(a) has made no representation respecting the physical condition of the 18th
Floor Must Take Premises and (b) shall have no obligation to do any work in and
to the 18th Floor Must Take Premises in order to make them suitable
and ready for occupancy and use by Tenant, except as otherwise specifically
provided in this Article. Landlord, at its expense, shall effect the following
work (“Landlord’s 18th Floor Must Take Work”) in and to the 18th
Floor Must Take Premises: the items of 

18

Landlord’s SAOP Work which are set forth in subparagraphs (i), (ii),
(iii) and (vi) of Article 8B of this Agreement, which items Landlord shall
perform in the 18th Floor Must Take Premises in accordance with the
applicable provisions of said Article 8B (it being agreed that the provisions
of said subparagraph (ii) regarding the performance of Landlord’s SAOP Asbestos
Removal Work during the period between the SAOP Commencement Date and the SAOP
Rent Commencement Date shall apply, also, with respect to any such asbestos
removal work which Landlord is required to perform in the 18th Floor
Must Take Premises during the period between the 18th Floor Must
Take Commencement Date and the 18th Floor Must Take Rent
Commencement Date). Tenant, at its expense (except as hereinafter provided)
shall effect all other work which is necessary to make the 18th
Floor Must Take Premises suitable and ready for Tenant’s occupancy and use
(“Tenant’s 18th Floor Must Take Initial Installation Work”). Tenant
shall perform Tenant’s 18th Floor Must Take Initial Installation
Work in accordance with the provisions of paragraphs C and F of Article 8 of
this Agreement, except that the amount of Landlord’s contribution with respect
to such work (for purposes of subparagraph C(iii) of said Article 8) shall be
$48,950.00, of which $7,343 may be applied to architectural and engineering
fees and other soft costs, and Tenant shall not be entitled to any additional
free hours of after-hours freight elevator usage for the 18th Floor
Must Take Premises. The provisions of paragraphs D and E of Article 8 shall not
be applicable to the 18th Floor Must Take Premises.

                              (vi)
The 18th Floor Must Take Premises shall be deemed part of the Second
Expanded Demised Premises for purposes of Articles 10B, 11, 12, 13, 15 and 22
of this Agreement.

                    C.
In the event that the 18th Floor Must Take Commencement Date shall not occur
simultaneously with the SAOP Commencement Date, then the amount of Landlord’s
SAOP Contribution shall be increased by $300,000.00 to a total of $8,379,874.00
(with the maximum amount to be applied to architectural and engineering fees to
be increased by $45,000.00 to a total of $1,256,981.00).

                    D.
In the event that the 18th Floor Must Take Commencement Date shall
occur simultaneously with the SAOP Commencement Date, but Tenant shall exercise
its right to defer the SAOP Commencement Date pursuant to Article 3A of this
Agreement, then the 18th Floor Must Take Commencement Date shall be
deemed deferred to the same date as the deferred SAOP Commencement Date, and
the fixed annual rental rates for the 18th Floor Must Take Premises,
as set forth in subparagraph B(i) above, shall be increased by the same amounts
(on a dollars per rentable square foot basis) as the fixed annual rental rates
for the Second Additional Office Premises are increased pursuant to Article 4C
of this Agreement (i.e., $0.25 per rentable square foot per annum for a
one-month deferral; $0.80 per rentable square foot per annum for a two-month
deferral; $1.45 per rentable square foot per annum for a three-month deferral;
and $2.15 per rentable square foot per annum for a four-month deferral).

          10. Article
4 of the Lease shall be deemed to be, and hereby is, modified as follows:

                    A.
With respect to the Second Additional Office Premises, the references in
Article 4J(ii) of the Original Lease to “Tenant’s Initial Installation Work”
shall mean “Tenant’s 

19

SAOP Initial Installation Work” (and with respect to the 18th
Floor Must Take Premises, shall mean “Tenant’s 18th Floor Must Take
Initial Installation Work”).

                    B.
The reference to the number “twelve (12)” in Article 4F(iii)(d) of the Lease
shall be changed to the number “eighteen (18)”. Additionally, in no event may
any assignment or subletting be made which results in the occupancy of any full
floor included in the Second Expanded Demised Premises by more than three (3)
occupants (including Tenant).

          11. Article
31 of the Lease shall be deemed to be, and hereby is, modified with respect to
the Second Additional Office Premises as follows:

                    A.
The third sentence of Article 31A(i) of the Original Lease shall be deemed to
be, and hereby is, modified so that Landlord shall furnish heat to the Second
Additional Office Premises so as to provide for reasonably comfortable
occupancy thereof, for normal office use, during all Business Hours on all
Business Days, during the cold season, at no charge to Tenant. Air conditioning
service shall be provided by the SAOP A/C Units to be installed by Tenant, and
Landlord shall provide Tenant with 275 tons per annum of chilled water from the
Building Chilled Water and Warm Water Circulating System in connection with the
operation of such Units, at no charge to Tenant during Business Hours. Such
chilled water service shall be provided to Tenant for the First Additional
Office Space and the Second Additional Office Space (it being acknowledged that
the Original Demised Premise is currently serviced by air-cooled
air-conditioning units) in accordance with the provisions of Article 24C of the
Original Lease, and for purposes of subparagraph (v) of said Article 24C of the
Original Lease, Tenant acknowledges that it has been advised by Landlord that
the Second Expanded Demised Premises and all of the Option Space/ROFO Space are
in the same zone and Landlord agrees that such space will remain in the same
zone during the term of the Lease (as modified hereby). Tenant acknowledges
that it has been advised as follows with respect to the Building Chilled Water
and Warm Water Circulating System: that it is currently operated on a
year-around basis; that the temperature of the chilled water generated by such
system is allowed to modulate to maintain suitable indoor temperatures (68 to
75 degrees F); that for the period from May 15th to September 15 (i.e., the
cooling season), the system will deliver chilled water to the FAOP A/C Units
and the SAOP A/C Units within a temperature range of 42 – 54 degrees F utilizing the mechanical cooling produced by the base Building
refrigeration plant; that during such cooling season, the chillers will only be
operated during Business Hours on Business Days; and that during the period
from September 16th to May 14th
(i.e., the heating season), the chillers will not be operated at all, but warm
water will be circulated on a 24/7 basis, by the base Building’s pumps. It is
further acknowledged and agreed that Landlord may from time to time modify or
amend the manner in which the Building Chilled Water and Warm Water Circulating
System operates, provided same does not materially and adversely affect the
operation of the FAOP A/C Units or the SAOP A/C Units (including, without limitation,
their ability comply with the temperature specifications set forth in (and
pursuant to the provisions of) Article 10B of the Second Modification with
respect to the FAOP A/C Units, and paragraph B of this Article with respect to
the SAOP A/C Units), or result in any additional material expense to Tenant.

                    B.
Article 31A(ii) of the Original Lease shall be deemed to be, and hereby is,
modified with respect to the Second Additional Office Premises, so that if (i)
the SAOP A/C 

20

Units to be installed by Tenant shall provide a minimum of 275 tons of
cooling capacity to the Second Additional Office Premises (with a minimum of
120 tons to the 18th Floor Portion, 120 tons to the 19th Floor
Portion and 35 tons to the 15th
Floor Portion), (ii) occupancy levels in the Second Additional Office Premises
will not exceed one (1) person per one hundred (100) square feet of rentable
area (and such occupants are evenly distributed throughout the Second
Additional Office Premises), (iii) the electrical load in the Second Additional
Office Premises shall not exceed six (6) watts per usable square foot on a
demand load basis and (iv) Tenant shall at all times comply with applicable and
relevant Building regulations affecting the operation of the SAOP A/C Units,
then the SAOP A/C Units and the Building heating system shall be capable of
maintaining the following conditions: (a) a minimum average indoor dry bulb
temperature of not less than 68 degrees Fahrenheit, whenever the outdoor
dry-bulb temperature, during Business Hours, is lower than 65 degrees and not
lower than 0 degrees Fahrenheit; and (b) a minimum average indoor dry-bulb
temperature of no higher than 75 degrees Fahrenheit, whenever the outdoor
dry-bulb temperature, during Business Hours, is higher than 65 degrees and not
higher than 95 degrees Fahrenheit, and the outdoor wet-bulb temperature does
not exceed 75 degrees Fahrenheit.

                    C.
Article 31C of the Original Lease shall be deemed to be, and hereby is,
modified with respect to the Second Additional Office Premises, so that any
Supplemental A/C Unit(s) to be installed by or on behalf of Tenant in and for
the Second Additional Office Premises shall be of the Direct Expansion (DX)
water-cooled type (and not an air-cooled unit), and shall be equipped with a
free cooling water-side economizer coil; and with respect to any such
Supplemental A/C Unit(s) with an outside-air connection, Tenant shall be
responsible for providing suitable electric duct heaters in order to prevent
coil freezing. Additionally, as a condition to the installation of any such
Supplemental A/C Unit(s) in and for the Second Additional Office Premises,
Tenant shall provide Landlord with a letter from a reputable HVAC consultant or
Tenant’s engineer confirming that the installation of such equipment is
required or desired based on Tenant’s plans and specifications for Tenant’s
SAOP Initial Installation Work and Tenant’s proposed business operations in the
Second Additional Office Premises. In the event that Tenant provides such
confirmation letter and thereafter installs any such Supplemental A/C Unit(s)
in and for the Second Additional Office Premises, then Landlord shall provide
Tenant with up to 30 tons per annum of chilled water from the Building Chilled
Water and Warm Water Circulating System for the operation of such unit(s)
(which 30 tons of chilled water shall be in addition to the 275 tons per annum
of chilled water to be supplied by Landlord for the SAOP A/C Units pursuant to
paragraph A above). It is acknowledged and agreed by Tenant that the use of
such chilled water for any Supplemental A/C Unit(s) in the Second Additional
Office Premises shall be subject to the following limitations: (i) during
Business Hours on Business Days, it shall be used as chilled water (which runs
through a coil in such Supplemental A/C Unit(s)) in order to provide cooling in
the Second Additional Office Premises; and (ii) outside of Business Hours on
Business Days, the chilled water shall be used as if it were condenser water (which
utilizes a compressor in such Supplemental A/C Unit(s)) in order to provide
cooling to the Second Additional Office Premises. Landlord, at Tenant’s
expense, shall (a) modify one (1) of the existing taps on the 18th
Floor Portion and/or one of the existing taps on the 19th Floor
Portion and/or one of the existing taps in the 15th Floor Portion in
order to provide up to a total of thirty (30) tons of additional chilled water
service for any such Supplemental A/C Unit(s) (it being acknowledged that there
are currently two (2) taps on each such floor, each with the 

21

capacity to provide sixty (60) tons of chilled water service), and (b)
a BTU submeter(s) to measure Tenant’s actual consumption of such chilled water.
Tenant shall reimburse Landlord for any and all actual out-of-pocket costs
incurred by Landlord in connection with the modification of such taps and the
purchase and installation of such BTU submeter(s), which costs shall be deemed
additional rent under the Lease, as modified hereby, and due within thirty (30)
days after demand, accompanied by documentation reasonably supporting such
costs. Tenant shall pay Landlord a charge in the amount of $2,000 per ton per
annum (“Landlord’s Annual Supplemental Chilled Water Charge”) for chilled water
used in connection with any Supplemental A/C Unit(s) in the Second Additional
Office Premises, as measured by such BTU submeter(s), which Landlord’s Annual
Supplemental Chilled Water Charge shall be subject to adjustment as hereinafter
provided, and shall be deemed additional rent under the Lease, as modified
hereby, and due within thirty (30) days after demand. Except as otherwise
provided above, there shall be no tap-in fees or charges associated with
accessing the Building’s Chilled Water and Warm Water Circulating System.
Landlord’s Annual Supplemental Chilled Water Charge shall be adjusted effective
as of the first month of each SAOP Lease Year hereunder (but never decreased
below $2,000) by multiplying Landlord’s Annual Supplemental Chilled Water
Charge by the percentage difference between the Price Index (as such term is
hereinafter defined) for the month prior to such first month and the Base Price
Index (as such term is hereinafter defined), and by adding the result to the
Landlord’s Annual Supplemental Chilled Water Charge. The term “Price Index”
when used herein shall mean the “Consumer Price Index” published by the Bureau
of Labor Statistics of the U.S. Department of Labor, All Items, New York, NY –
Northeastern, N.J., for urban wage earners and clerical workers, or a successor
or substitute index approximately adjusted. The term “Base Price Index” shall
mean the Price Index for December 2013. Anything contained herein to the
contrary notwithstanding, in the event that the Price Index ceases to use 1982-84=100
as the basis of calculation, or if a substantial change is made in the terms or
number of items contained in the Price Index, then the Price Index shall be
adjusted to the figure that would have been arrived at had the manner of
computing the Price Index in effect at the date of this Agreement not been
altered. In the event such Price Index (or a successor or substitute index) is
not available, a reliable governmental or other non-partisan publication
evaluating the information theretofore used in determining the Price Index
shall be used.

          12.
The following provisions of the Original Lease shall not be
applicable to the Second Additional Office Premises: paragraphs A, B, C, D, E,
F and H of Article 1; the fixed annual rental rates set forth in Article 2A;
paragraphs A, B, C, E and F of Article 23; Article 40; Article 43A; and
Exhibits A, I and J. Article 9B of the Second Modification shall be deemed to
be, and hereby is, deleted from the Lease.

          13.
Article 3 of the Lease shall be deemed to be, and hereby is,
modified, so that Landlord may, from time to time, following the expiration of
the first SAOP Lease Year (but not more frequently than once in any SAOP Lease
Year), cause Landlord’s electrical consultant to determine Tenant’s electrical
requirements for the Second Expanded Demised Premises over the twelve (12)
months immediately preceding each such determination. If Landlord’s electrical
consultant shall determine that Tenant’s electrical requirements are less than
the electrical capacity which Landlord is responsible hereunder to provide to
the Second Expanded Demised Premises (i.e., six (6) watts per rentable square
foot of demand load in the Original Demised 

22

Premises and the FAOP Electrical Capacity in the First Additional Office
Premises and the SAOP Electrical Capacity in the Second Additional Office
Premises), then Landlord may, in its sole discretion, at any time following the
sixtieth (60th) day after giving Tenant notice (hereinafter referred to as the
“Electric Recapture Notice”) of Landlord’s intent to do so, perform all work
(collectively, “Landlord’s Excess Capacity Recapture Work”) required in order
to recapture up to eighty percent (80%) of any such excess electrical capacity
then so determined to exist (provided such recapture of electrical capacity has
no adverse impact (other than to a de minimis extent) on the operation of
Tenant’s business in the Second Expanded Demised Premises), unless Tenant shall
have objected to such recapture in the manner hereinafter provided within such
sixty (60) day period. The Electric Recapture Notice shall be (a) given not
later than sixty (60) days following the determination of such excess capacity
and (b) accompanied by an explanation in reasonable detail of how the
determination of such excess capacity was made (including, without limitation,
calculations thereof prepared by a licensed electrical engineer). Any objection
to such recapture of excess electrical capacity shall be in writing specifying
in reasonable detail the reasons for such objection, including, without
limitation, calculations of Tenant’s electrical requirements prepared by a
licensed electrical engineer. Any such dispute shall be resolved pursuant to
the dispute resolution provisions of Article 3B(iv) of the Original Lease. If
it then shall be determined that excess capacity exists, then upon not less
than thirty (30) days’ notice to Tenant and subject to the terms, covenants and
conditions of Article 22 of this Agreement, Landlord may perform Landlord’s
Excess Capacity Recapture Work in order to recapture up to eighty percent (80%)
of such excess capacity. Tenant acknowledges that the purpose of this Article
is to foster conservation of electric consumption in the Building.
Notwithstanding the foregoing, if Landlord recaptures any such excess capacity
and Tenant thereafter provides Landlord with a “load letter” from Tenant’s
engineer or from a reputable electrical consultant which substantiates (to the
reasonable satisfaction of Landlord) Tenant’s need for any additional
electrical capacity for its operations in the Second Expanded Demised Premises,
then Landlord, at Landlord’s sole cost and expense and subject to the terms,
covenants and conditions of Article 22 of this Agreement, shall as
expeditiously as reasonably possible perform all work (collectively,
“Landlord’s Electrical Restoration Work”) as is necessary to provide such
additional electrical capacity to the Second Expanded Demised Premises (at the
existing electrical panels or then existing electrical busways located on each
applicable floor, as determined by Landlord), provided that in no event shall
Landlord be responsible for providing any electrical capacity in excess of six
(6) watts per rentable square foot of demand load in the Original Demised Premises,
the FAOP Electrical Capacity in the First Additional Office Premises and the
SAOP Electrical Capacity in the Second Additional Office Premises.

          14. A.
Reference is hereby made to the following subordination, non-disturbance and
attornment agreements (each an “Existing SNDA” and collectively, the “Existing
SNDA’s”): (i) SNDA between Empire State Building L.L.C. and Tenant dated as of
July 14, 2008; and (ii) SNDA between Empire State Land Associates L.L.C. and
Tenant dated as of July 14, 2008. Landlord agrees to obtain and deliver to
Tenant an agreement from the grantor under each of the Existing SNDA’s
confirming that its Existing SNDA will remain in full force and effect with
respect to the Lease, as modified by this Agreement, executed by the applicable
grantor, and acknowledged. Landlord shall deliver such confirmation from Empire
State Building Associates 

23

L.L.C. and Empire State Land Associates L.L.C. to Tenant simultaneously
with the execution and delivery of this Agreement by Landlord and Tenant.

                    B.
As of the date hereof, the real property of which the Building forms a part is
encumbered by a certain mortgage made by Empire State Land Associates L.L.C.
and Empire State Building Associates L.L.C. in favor of HSBC Bank USA, National
Association (“HSBC”), as agent. Notwithstanding anything contained in the
Lease, as modified hereby, to the contrary, Landlord shall obtain from HSBC,
for the benefit of Tenant, a subordination, non-disturbance and attornment
agreement, substantially in the form attached hereto and made a part hereof as
Exhibit C. Landlord shall deliver such subordination, non-disturbance and
attornment agreement to Tenant executed by HSBC, Landlord, Empire State Land
Associates L.L.C. and Empire State Building Associates L.L.C., and
acknowledged, within forty-five (45) days of the date that this Agreement is
executed and delivered by Landlord and Tenant. In the event that Landlord fails
to so deliver such subordination, non-disturbance and attornment agreement to
Tenant within such forty-five (45) day period, then, at Tenant’s election, to
be made by notice to Landlord given within ten (10) days after the end of such
forty-five (45) day period, this Agreement shall be deemed to be null and void
and of no further force and effect, and neither party shall have any further
obligation or liability to the other hereunder. Tenant shall promptly execute,
have acknowledged and deliver any such subordination, non-disturbance and
attornment agreement.

          15.
The renewal option set forth in Article 32 of the Lease shall
continue to be applicable with respect to the Lease, as modified by this
Agreement, except that the term “EP Renewal Premises” shall mean the portion of
the Second Expanded Demised Premises as to which Tenant exercises its renewal
option pursuant to said Article 32, as modified hereby; it being understood and
agreed, however, that Tenant may only exercise such renewal option with respect
to the entire Second Expanded Demised Premises or any portion thereof
consisting of two (2) or more contiguous floors, provided there is no
separation of any floors which are included in the Second Expanded Demised
Premises but not part of the EP Renewal Premises). If Tenant exercises such
renewal option with respect to less than all of the Second Expanded Demised
Premises, then “The Percentage” for purposes of calculating operating expense
and real estate tax escalation additional rents payable under paragraphs B and
C of Article 2 of the Lease, as modified hereby, respectively, during the
Extended Term shall be calculated in the same manner as under the Original
Lease with respect to the Original Demised Premises.

          16.
A. Tenant represents and warrants that it neither consulted nor
negotiated with any broker or finder with regard to this Agreement other than
Newmark & Company Real Estate, Inc., d/b/a Newmark Knight Frank and Cassidy
Turley New York, Inc. (collectively, the “Brokers”). Tenant shall indemnify,
defend and hold Landlord harmless from and against any claims for fees or
commissions from anyone other than the Brokers with whom Tenant has dealt in
connection with this Agreement.

                    B.
Landlord represents and warrants that it neither consulted nor negotiated with
any broker or finder with regard to this Agreement other than the Brokers.
Landlord shall indemnify, defend and hold Tenant harmless from and against any
claims for fees or commissions from anyone including the Brokers, with whom
Landlord has dealt in connection 

24

with this Agreement. Landlord agrees to pay any commission or fee owing
to the Brokers pursuant to separate agreements with them. Nothing in this
Article shall be construed to be a third party beneficiary contract.

          17.
A. Tenant hereby represents that, to the best of its knowledge:
(i) Landlord is in full compliance with the Lease, (ii) Landlord is not in
default beyond any applicable grace period of any of its respective obligations
under the Lease, and (iii) there exists no defense or counterclaim to the
payment of any fixed annual rent or additional rent Landlord has billed Tenant
to date under the Lease.

                    B.
Landlord hereby represents that, to the best of its knowledge: (i) Tenant is in
full compliance with the Lease, and (ii) Tenant is not in default beyond any
applicable grace period of any of its respective obligations under the Lease.

          18.
This Agreement shall not in any way bind Landlord or Tenant until
such time as it has been executed by both Landlord and Tenant, and thereafter
has been duly delivered to the respective parties.

          19.
Except as herein modified, all of the terms, covenants and
conditions of the Lease are and shall remain in full force and effect and are
hereby ratified and confirmed.

          20.
This Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective legal representatives,
successors and assigns. This Agreement constitutes the entire agreement of the
parties concerning the matters and transactions covered by this Agreement.

          21. This
Agreement may be executed in one (1) or more counterparts, each of which shall
be deemed an original, but all of which when taken together will constitute one
and the same instrument. The signature page of any counterpart of this
Agreement may be detached therefrom without impairing the legal effect of the
signature(s) thereon provided such signature page is attached to any other
counterpart of this Agreement identical thereto except having an additional signature
page executed by the other party to this Agreement attached thereto. Any
counterpart of this Agreement may be delivered via facsimile, email or other
electronic transmission, and shall be legally binding upon the parties hereto
to the same extent as originals.

          22. Tenant
shall reasonably cooperate with Landlord in connection with any Landlord’s SAOP
Punch List Work, Landlord’s SAOP Asbestos Removal Work, Landlord’s SAOP
Submetering Work, Landlord’s SAOP Additional Electrical Capacity Work,
Landlord’s Excess Capacity Recapture Work and Landlord’s Electrical Restoration
Work, including, without limitation, by providing Landlord and its contractors
with such access to the Second Expanded Demised Premises as is reasonably
necessary for the performance of such work. Landlord shall use commercially
reasonable efforts to effect such access and work in a manner which minimizes
any interference with, as the case may be, the performance of Tenant’s SAOP
Initial Installation Work or the conduct of Tenant’s business at the Second
Expanded Demised Premises; it being understood and agreed, however, that any
such work may be performed on Business Days during Business Hours unless (a)
such entry or work (1) results in a denial of any 

25

reasonable means of access to the Second Expanded Demised Premises or
use of the Second Expanded Demised Premises for the performance of Tenant’s
SAOP Initial Installation Work or for the conduct of Tenant’s business in the
normal course thereof or (2) imminently threatens the health or safety of any
authorized occupant of the Second Expanded Demised Premises; or (b) Tenant
shall request that Landlord perform the work on an overtime or premium basis
and Tenant shall agree to reimburse Landlord for the cost of same (provided
such work is capable of being performed on such overtime or premium basis and
it is possible to do so), in which event Tenant shall pay to Landlord, within
thirty (30) days after demand therefor, an amount equal to the difference
between overtime or premium pay rates and the regular pay rates for performing
such work.

          23. It is
acknowledged and agreed that Tenant shall be entitled to the $45,000.00 rent
credit set forth in Article 25 of the Second Modification, which rent credit
shall be applied, until fully depleted, against the first fixed annual rent due
under the Lease, as modified hereby, with respect to the 15th Floor
Portion.

          24. A. If,
at any time during the term of the Lease, as modified hereby, Landlord issues a
written proposal to a prospective tenant (or its agent) for the leasing of all
or any part of the 20th and/or 21st floor of the Building
(whether or not such proposal includes space on any other floor of the
Building), then Landlord shall simultaneously give Tenant a copy of such
proposal (but with the identity of the prospective tenant and any terms and
conditions which are not applicable to the 20th and/or 21st
floor space redacted), which shall include a diagram showing the 20th
and/or 21st floor space covered thereby, as well as the following
proposed terms for the leasing of such space: the term, the term commencement
date, the rent commencement date, the fixed annual rental rates, the escalation
additional rents (including base years), the electricity charges, the rentable
square foot area of the space, the condition in which Landlord is willing to
lease such space, including, without limitation, any base building work which
Landlord is willing to perform and/or work allowance or contribution which
Landlord is willing to make towards the cost of Tenant’s initial installation
in such space, and the amount of any security required by Landlord in
connection with the leasing of such space (each such proposal being a “Landlord
Proposal”). If and so long as Tenant is not in default under the Lease, as
modified hereby, beyond any applicable notice and/or cure period, Tenant shall
have the option, with respect to the 20th and/or 21st
floor space included in the Landlord Proposal (the “Landlord Proposal Space”),
exercisable by written notice to Landlord given within five (5) business days
after Tenant has been given the Landlord Proposal (time being of the essence),
to add to the Second Expanded Demised Premises all but not part of such
Landlord Proposal Space, pursuant to the terms and conditions set forth in the
Landlord Proposal; it being understood and agreed, however, that Tenant shall
only be required to provide the security required under the Landlord Proposal
if there has been a material adverse change in the financial condition of
Tenant following the date of this Agreement which remains in effect on the date
Tenant exercises such option. If Tenant duly and timely exercises such option,
then Landlord and Tenant shall enter into an amendment of the Lease, as
modified hereby, confirming the inclusion of the Landlord Proposal Space in the
Second Expanded Demised Premises pursuant to the terms and conditions set forth
in the Landlord’s Proposal. In all other respects, the terms and conditions
contained in the Lease, as modified hereby, shall remain unmodified. Any such
amendment of the Lease, as modified hereby, shall be in Landlord’s then
standard form for the Building (but in any event 

26

shall be substantially similar to this Agreement). In the event that
Tenant fails to exercise its option as aforesaid within such five (5) business
day period, then Tenant shall be deemed to have waived its rights under this
Article with respect to the leasing of such Landlord Proposal Space based on
the Landlord Proposal. However, the foregoing provisions shall again apply with
respect to any subsequent Landlord Proposal which Landlord issues with respect
to such Landlord Proposal Space, even if it is to the same prospective tenant
(or its agent) to whom the original Landlord Proposal was issued; provided,
however, that with respect to any such subsequent Landlord Proposal to the same
prospective tenant (or its agent) to whom the original Landlord Proposal was
issued which is sent on a “Best and Final” basis, such five (5) business day
period in which Tenant must respond to such subsequent Landlord Proposal shall
be reduced to a period of twenty-four (24) hours (time being of the essence).

                    B.
The foregoing provisions are intended to reflect the intention of
the parties that Tenant shall have no other rights with respect to Landlord’s
renting of the above described space or any other space in the Building, except
as specifically set forth in Article 43 of the Lease.

                    C.
The exercise by Tenant of its rights under this Article (or under
said Article 43) shall be conditioned upon the occupancy of at least eighty
percent (80%) of the then rentable square foot area of the Second Expanded
Demised Premises by Tenant and/or any Affiliate of Tenant and/or Desk Space
User.

          IN WITNESS
WHEREOF, the parties hereto have executed this Agreement as of the
day and year first above written.

	
  

 	
  

 	
  

 
	
  

 	
 LANDLORD:

 
	
  

 	
 EMPIRE STATE
 BUILDING COMPANY L.L.C.

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
 /s/ Peter L.
 Malkin

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Peter L.
 Malkin, Member

 
	
  

 	
  

 	
  

 
	
  

 	
 TENANT: 

 
	
  

 	
 COTY INC.

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
   Name: 

 
	
  

 	
  

 	
   Title: 

 

27

shall be substantially similar to this Agreement). In the event that
Tenant fails to exercise its option as aforesaid within such five (5) business
day period, then Tenant shall be deemed to have waived its rights under this
Article with respect to the leasing of such Landlord Proposal Space based on
the Landlord Proposal. However, the foregoing provisions shall again apply with
respect to any subsequent Landlord Proposal which Landlord issues with respect
to such Landlord Proposal Space, even if it is to the same prospective tenant
(or its agent) to whom the original Landlord Proposal was issued; provided,
however, that with respect to any such subsequent Landlord Proposal to the same
prospective tenant (or its agent) to whom the original Landlord Proposal was
issued which is sent on a “Best and Final” basis, such five (5) business day
period in which Tenant must respond to such subsequent Landlord Proposal shall
be reduced to a period of twenty-four (24) hours (time being of the essence).

                    B.
The foregoing provisions are intended to reflect the intention of
the parties that Tenant shall have no other rights with respect to Landlord’s
renting of the above described space or any other space in the Building, except
as specifically set forth in Article 43 of the Lease.

                    C.
The exercise by Tenant of its rights under this Article (or under
said Article 43) shall be conditioned upon the occupancy of at least eighty
percent (80%) of the then rentable square foot area of the Second Expanded
Demised Premises by Tenant and/or any Affiliate of Tenant and/or Desk Space
User.

          IN WITNESS
WHEREOF, the parties hereto have executed this Agreement as of the
day and year first above written.

	
  

 	
  

 	
  

 
	
  

 	
 LANDLORD:

 
	
  

 	
 EMPIRE STATE
 BUILDING COMPANY L.L.C.

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
   Peter L.
 Malkin, Member

 
	
  

 	
  

 	
  

 
	
  

 	
 TENANT: 

 
	
  

 	
 COTY INC.

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Jules
 Kaufman

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
   Name: Jules
 Kaufman

 
	
  

 	
  

 	
   Title:
 Senior VP, General Counsel and Secretary

 

27

EXHIBIT A

SECOND ADDITIONAL OFFICE PREMISES

[Floor Plan]

[Floor Plan]

[Floor Plan]

EXHIBIT B

BUILDING STANDARD

ENVIRONMENTAL DESIGN AND CONSTRUCTION GUIDELINES

BUILDING STANDARD ENVIRONMENTAL DESIGN

AND CONSTRUCTION GUIDELINES

	
  

 	
  

 
	
 A.

 	
 Energy Efficiency:

 

          1. Reduce
lighting power density from ASHRAE/IESNA 90.1-2007 standards by at least 10%
and up to 35%, as long as the measures required in order to do so do not affect
the design intent of the Second Additional Office Premises in any material
respect. This may be achieved through efficient lighting design, use of low
wattage fixtures and reflective surfaces as well as LED task lights and
day-lighting optimization strategies.

          2.
Implement lighting controls, including daylight dimming controls, for lighting
within the perimeter zone (approximately fifteen (15) feet from the perimeter
walls), except for non windowed areas that have no penetration of natural
light. Install occupancy sensors for a target of 75% of the connected lighting
load of the useable space.

          3. Optimize
energy performance of HVAC systems through zoning controls, VFD’s on pumps and
motors, and VAV distribution systems, and specify CFC-free refrigerants.

          4.
Implement Demand Controlled Ventilation through the use of CO2 sensors in the
Second Additional Office Premises and in the return air stream to the Air
Handling Unit serving the Second Additional Office Premises and tie in to
controls.

          5. Tie in
radiators to VAV box controls and building management system.

          6. Install
local instantaneous hot water heaters.

          7. Target
lighting and plug load of 2.0-2.5 Watts per usable square foot of demand load.

          8. Reduce
plug loads by specifying equipment and appliances (including, without
limitation, computers, printers, refrigerators, copiers, and A/V and IT
equipment) that meet or exceed Energy Star requirements in effect as of the
date hereof. This provision shall only apply to new equipment and appliances
purchased by Tenant for use within the Second Additional Office Premises.

          9.
Perform a one-time commissioning of energy systems within the
Second Additional Office Premises (including, without limitation, lighting,
HVAC and electrical) after substantial completion of Tenant’s SAOP Initial Installation
Work in order to ensure design optimizes performance and systems are
constructed and function per efficient design.

	
  

 	
  

 
	
 B.

 	
 Water Efficiency:

 

          1. Specify
low flow fixtures, including, without limitation, lavatories, water closets, urinals
and pantry sinks.

	
  

 	
  

 
	
 C.

 	
 Materials and Resources:

 

          1.
Divert construction waste from landfills through recycling and
donation programs.

          2.
Reuse materials whenever possible, including construction
materials.

          3.
Specify recycled content materials whenever reasonably possible,
which may include, without limitation, gypsum board, acoustical tiles, carpet
and carpet backing.

          4.
Specify regionally produced and extracted materials whenever
possible.

          5.
Specify rapidly renewable resources whenever reasonably possible,
including, without limitation, bamboo, wool, linoleum and cork.

          6.
Specify and use wood products certified by the Forest Stewardship
Council (FSC) whenever reasonably possible, provided that the cost of such wood
products is consistent with the market price of comparable non-certified
products.

	
  

 	
  

 
	
 D.

 	
 Indoor Environmental Quality:

 

          1.
Monitor delivery of outside air to ensure indoor air quality
compliance with ASHRAE 62.1 and 55.

          2.
Implement Construction Indoor Air Quality Management Plans during
performance of Tenant’s SAOP Initial Installation Work and prior to occupancy
to minimize the presence and spread of air pollutants.

          3.
Specify and install low-emitting (low or no Volatile Organic
Compounds) adhesives, sealants, paints, coatings, flooring systems, composite
wood and agrifiber products, systems furniture and seating.

          4.
Offer occupants control of lighting.

          5.
Design and build to optimize daylight and views for occupants,
which may be achieved through interior rather than exterior offices, or
perimeter offices with glass fronts.

2

EXHIBIT C

HSBC SNDA

	
  

 
	

 

 
	
  

 
	
 HSBC BANK USA, NATIONAL ASSOCIATION,
 as agent

 
	
 (Agent)

 
	
  

 
	
 - and -

 
	
  

 
	
 COTY INC.

 
	
 (Tenant)

 
	
  

 
	

 

 
	
  

 
	
 SUBORDINATION, NON-DISTURBANCE

 
	
 AND ATTORNMENT AGREEMENT

 
	
  

 
	

 

 

	
  

 	
  

 	
  

 
	
  

 	
 Dated:

 	
 April ____,
 2012

 
	
  

 	
  

 	
  

 
	
  

 	
 Location:

 	
 Empire State
 Building 

 
	
  

 	
  

 	
 350 Fifth
 Avenue

 
	
  

 	
  

 	
 New York,
 New York

 
	
  

 	
  

 	
  

 
	
  

 	
 Block:

 	
 00835

 
	
  

 	
 Lot:

 	
 0041

 
	
  

 	
 County:

 	
 New York

 
	
  

 	
  

 	
  

 
	
  

 	
 PREPARED BY
 AND UPON 

 
	
  

 	
 RECORDATION
 RETURN TO:

 
	
  

 	
  

 
	
  

 	
 Cadwalader,
 Wickersham & Taft LLP 

 
	
  

 	
 One World
 Financial Center

 
	
  

 	
 New York,
 New York 10281

 
	
  

 	
 Attention:
 Steven M. Herman, Esq.

 
	
  

 	
  

 
	

 

 

SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT

          THIS SUBORDINATION,
NON-DISTURBANCE AND ATTORNMENT AGREEMENT (this “Agreement”)
is made as of the _________ day of April 2012 by and between HSBC BANK
USA, NATIONAL ASSOCIATION, a bank organized under the laws of the United States of America (“HSBC”),
having an address at 452 Fifth Avenue, New York, New York 10018, as
administrative agent (“Agent”) for itself in its individual capacity as
a lender and the other co-lenders that may exist from time to time (together
with HSBC in its individual capacity as a lender, collectively, “Lenders”)
and COTY INC., having an
address at 350 Fifth Avenue, Suite 1400, New York, New York 10118 (“Tenant”).

RECITALS:

          A.
Empire State Land Associates L.L.C. (“Ground Lessor”), as
successor-in-interest to The Prudential Insurance Company of
America, and Empire
State Building Associates L.L.C. (“Ground Lessee”), as
successor-in-interest to Alglan Realty Corporation, Rostev Realty Corporation
and Bentob Realty Corporation, are parties to that certain Indenture of Ground
Lease dated December 21, 1951 and recorded December 21, 1951 in the Office of
the Register of the City of New York (the “City Register’s Office”) at
book 4759, page 534 (the “Original Ground Lease”), which Original Ground
Lease was amended by that certain (i) Modification of Indenture of Lease dated
December 27, 1961 and recorded December 27, 1961 in the City Register’s Office
at book 5173, page 49, (ii) Second Modification of Indenture of Lease dated
February 15, 1965 and recorded February 15, 1965 in the City Register’s Office
at book 5314, page 479, and (iii) Agreement and Declaration dated December 2,
1965 and recorded December 10, 1965 in the City Register’s Office at book 5353,
page 260 (the Original Ground Lease, as so amended, the “Ground Lease”).

          B.
Ground Lessee and Empire State Building Company L.L.C. (“Landlord”),
as successor-in-interest to Lawrence A. Wien, Harry B. Helmsley, Martin Weiner
Realty Corporation and Parempco Inc., as joint venturers associated under the
name Empire State Building Company, are parties to that certain Agreement of
Sublease dated December 27, 1961 and recorded December 27, 1961 in the City
Register’s Office at book 5173, page 155 (the “Original Sublease”),
which Original Sublease was amended by that certain (i) First Modification of
Sublease dated February 15, 1965 and recorded February 15, 1965 in the City
Register’s Office at book 5315, page 1, (ii) Second Modification of Sublease
dated February 25, 2009 (which was not recorded) and (iii) Third Modification of
Sublease dated July 26, 2011 and recorded August 9, 2011 in the City Register’s
Office as CRFN 2011000279922 (the Original Sublease, as amended, the “Sublease”).

          C.
Lenders have made a loan and will in the future advance
additional amounts thereunder (collectively, the “Loan”) to Ground
Lessor and Ground Lessee (Ground Lessor and Ground Lessee are hereinafter
referred to collectively as “Borrower”), which Loan is given pursuant to
the terms and conditions of that certain Loan Agreement (the “Loan Agreement”)
dated July 26, 2011 by and among Agent, Lenders and Borrower. The Loan is
secured by a certain Consolidated, Amended and Restated Mortgage, Assignment of
Leases and Rents and Security Agreement dated July 26, 2011 and recorded August
9, 2011 in the City 

Register’s Office as CRFN 2011000279924 by and between Agent and
Borrower (together with any and all future advances, renewals, increases,
modifications, spreaders, consolidations, replacements and extensions thereof,
the “Mortgage”), which Mortgage encumbers, among other things, the fee
estate of Ground Lessor in and to the leasehold estate of Ground Lessee under
the Ground Lease and the Sublease in the land more particularly described in Exhibit
A attached hereto (the “Land”) and the building erected thereon
commonly known as the Empire State Building (the “Building;” the Land
and the Building are hereinafter referred to collectively as the “Property”);

          D.
Tenant subleases a portion of the Building from Landlord under
and pursuant to the provisions of that certain lease described on Exhibit B
attached hereto (the “Lease”); and

          E.
Tenant has agreed to subordinate the Lease to the Mortgage and to
the lien thereof and Agent has agreed to grant non-disturbance to Tenant under
the Lease on the terms and conditions hereinafter set forth and, accordingly,
Tenant and Agent desire to confirm their understanding with respect to the
Lease and the Mortgage.

AGREEMENT:

          For good
and valuable consideration, Tenant and Agent agree as follows:

          1. Subordination.
Subject to the terms, covenants and conditions of this Agreement, Tenant agrees
that the Lease and all of the terms, covenants and provisions thereof and all
rights, remedies and options of Tenant thereunder shall at all times be subject
and subordinate in all respects to the lien of the Mortgage including, without
limitation, all sums secured thereby, with the same force and effect as if the
Mortgage had been executed, delivered and recorded prior to the execution and
delivery of the Lease.

          2. Non-Disturbance.
If any action or proceeding is commenced by Agent or any Lender for the
foreclosure of the Mortgage or the sale of the Property, or to enforce any
other right or remedy of Agent or any Lender, Tenant shall not be named as a
party therein (unless such joinder shall be required by law, provided, however,
such joinder shall not result in the termination of the Lease or adversely
affect Tenant’s rights under the Lease including, without limitation, Tenant’s
rights to possess and use the premises demised thereunder), and the sale of the
Property in any such action or proceeding and the exercise by Agent or Lender
of any of its or their other rights or remedies under the Mortgage and the
other documents executed in connection therewith (the “Loan Documents”)
shall be made subject to all rights and remedies of Tenant under the Lease
which Lease shall continue in full force and effect upon all of the terms,
covenants and conditions set forth in the Lease except as otherwise expressly
set forth in Section 3 below, provided, that, at the time of the
commencement of any such action or proceeding or at the time of any such sale
or exercise of any such other rights or remedies, Tenant shall not be in
default under any of the terms, covenants or conditions of the Lease on
Tenant’s part to be observed or performed beyond the expiration of all
applicable notice, grace and cure periods provided under the Lease or under
applicable law and the Lease shall be in full force and effect.

2

          3. Attornment.
Upon any 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, and if the conditions set forth in Section 2 above have been
met at the time of such transfer or, if such conditions have not been met at
such time, at the option of the transferee of the Property (the “Transferee”),
the Lease shall not be terminated or affected thereby but shall continue in
full force and effect as a direct lease between the Transferee and Tenant upon
all of the terms, covenants and conditions set forth in the Lease and in that
event, Tenant agrees to attorn to the Transferee and the Transferee by virtue
of its acquisition of the Property shall be deemed to have agreed to accept
such attornment, provided, however, that the Transferee shall not
be (a) liable (i) for Landlord’s failure to perform any of its obligations
under the Lease which have accrued prior to the date (the “Transfer Date”)
on which the Transferee shall become the owner of the Property (such
obligations, “Landlord’s Obligations”) or (ii) for any act or omission
of Landlord (whether prior to or after such foreclosure or sale); provided,
however, that nothing contained in clauses (i) and (ii) above shall exculpate,
or be construed as exculpating, the Transferee from liability for any default
of Landlord under the Lease continuing after the Transfer Date, (b) subject to
any offsets, defenses, abatements or counterclaims which shall have accrued to
Tenant against Landlord prior to the Transfer Date; provided, however, that the
Transferee shall be subject to such offsets, defenses, abatements and
counterclaims in favor of Tenant as are expressly permitted pursuant to the
terms of the Lease, including, without limitation, any offsets available to
Tenant with respect to Landlord’s FAOP Contribution and Landlord’s SAOP
Contribution (as such terms are defined in the Lease), (c) 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 or credited
to the Transferee, (d) bound by any payment of rents, additional rents or other
sums which Tenant may have paid more than one (1) month in advance of their
date due pursuant to the provisions of the Lease to Landlord unless (i) such
sums are actually received by or credited to the Transferee or such sums are an
estimated payment against annual pass-through charges, or (ii) such prepayment
shall have been expressly approved of by the Transferee, (e) bound by any
agreement amending, modifying or terminating the Lease made without the Agent’s
prior written consent prior to the Transfer Date, except for any such
agreements made pursuant to provisions of the Lease which contemplate the
making of such agreements, and (f) liable for any tenant improvement allowance
payable to Tenant as reimbursement for the costs incurred by Tenant in
preparing the premises demised under the Lease for Tenant’s occupancy. Notwithstanding
the foregoing, in no event shall the Transferee be liable to make any
out-of-pocket payments to Tenant in order to reimburse Tenant for any
overpayments of additional rent with respect to escalations in Expenses (as
such term is defined in the Lease) and/or real estate taxes made by Tenant to
Landlord prior to the Transfer Date, so long as the Transferee, at least twenty
(20) days prior to the Transfer Date, requests Tenant in writing to inform the
Transferee of any such amounts that may be payable to Tenant pursuant to the
Lease and Tenant fails to do so before the Transfer Date and provided further
that the foregoing shall not be deemed to abrogate Tenant’s audit rights under
the Lease. If, as a result of any such audit, any such reimbursements are
determined in accordance with the terms of the Lease to be due and payable to
Tenant, Tenant shall have the right to offset the amount thereof against the
next installment(s) of fixed annual rent payable under the Lease and in no
event shall the Transferee be liable to make any out-of-pocket payments to
Tenant on account thereof.

3

          4.
Notice to Tenant. After notice is given to Tenant by Agent
that Landlord is in default under the Loan Agreement, the Mortgage and the
other Loan Documents and that the rentals under the Lease should be paid to
Agent pursuant to the terms of the assignment of leases and rents executed and
delivered by Landlord to Agent in connection therewith, Tenant shall thereafter
pay to Agent or as directed by Agent, all rentals and all other monies due or
to become due to Landlord under the Lease and Landlord hereby (i) expressly
authorizes Tenant to make such payments to Agent or as Agent may direct, (ii)
releases and discharges Tenant from any liability to Landlord on account of any
such payments and (iii) agrees that all such payments shall be fully credited
against Tenant’s obligations under the Lease as and when they become due.

          5.
Agent’s Consent. Tenant shall not, without obtaining the
prior written consent of Agent (a) enter into any agreement amending, modifying
or terminating the Lease (except for any such agreements made pursuant to
provisions of the Lease which expressly contemplate the making of such
agreements including, without limitation, Articles 32 and 43 of the Lease), (b)
prepay any of the rents, additional rents or other sums due under the Lease for
more than one (1) month in advance of their dates due pursuant to the
provisions of the Lease, or (c) voluntarily surrender the premises demised
under the Lease or terminate the Lease without cause or shorten the term
thereof; and any such amendment, modification, termination, prepayment or
surrender, shall not be binding upon Agent. Agent shall not unreasonably
withhold, condition or delay its consent to any agreement amending or modifying
the Lease so long as such agreement does not amend or modify the rent, term or
other material terms of the Lease.

          6.
Agent to Receive Notices. Tenant shall notify (the “Default
Notice”) Agent concurrently with any notice sent to Landlord pursuant to
the Lease alleging any default by Landlord under the Lease which would entitle
Tenant to cancel or terminate the Lease (a “Landlord Default”). Tenant
agrees that, notwithstanding any provisions of the Lease to the contrary, no
Default Notice shall be effective unless it shall have been given to Agent in
accordance with the terms of Section 7 of this Agreement and Agent shall
have failed to cure such Landlord Default within thirty (30) days thereafter
(the “Cure Period”). Notwithstanding the foregoing, if a Landlord
Default cannot with due diligence be cured by Agent within the Cure Period,
then Agent shall have a reasonable period for curing such Landlord Default so
long as Agent (i) within the Cure Period, advises Tenant, in writing, of
Agent’s intention to cure such Landlord Default and (ii) duly commences curing
such Landlord Default within the Cure Period and thereafter diligently
prosecutes the same to completion; provided, however, that in no event shall
Agent’s entire cure period exceed sixty (60) days. In addition to the
foregoing, Tenant shall endeavor to notify Agent concurrently with any notice
sent to Landlord pursuant to the Lease alleging any right of Tenant to abate
the rents, additional rents or any other sums payable thereunder.

          7.
Notices. All notices or other written communications
hereunder shall be deemed to have been properly given (a) upon delivery, if
delivered in person or by facsimile transmission with receipt acknowledged by
the recipient thereof, (b) one (1) Business Day (hereinafter defined) after
having been deposited for overnight delivery with any reputable overnight
courier service, or (c) three (3) Business Days after having been deposited in
any post 

4

office or mail depository regularly maintained by the U.S. Postal Service and sent by
registered or certified mail, postage prepaid, return receipt requested,
addressed as follows:

	
  

 	
  

 
	
 If to
 Tenant:

 	
 Coty Inc.

 
	
  

 	
 Two Park
 Avenue

 
	
  

 	
 New York,
 New York 10016 

 Attention: Chief Financial Officer 

 Facsimile No.: (212) 479-4317

 
	
  

 	
  

 
	
 with a copy
 to:

 	
 Coty Inc.

 
	
  

 	
 Two Park
 Avenue

 
	
  

 	
 New York,
 New York 10016 

 Attention: General Counsel 

 Facsimile No.: (212) 479-4375

 
	
  

 	
  

 
	
 If to Agent:

 	
 HSBC Bank
 USA, National Association, as Agent 

 545 Washington Boulevard, 10th Floor

 
	
  

 	
 Jersey City,
 New Jersey 07310

 
	
  

 	
 Attention:
 Commercial Mortgage Servicing Department 

 Facsimile No. (212) 525-1152

 
	
  

 	
  

 
	
 With a copy
 to:

 	
 Cadwalader,
 Wickersham & Taft LLP 

 One World Financial Center

 
	
  

 	
 New York,
 New York 10281

 
	
  

 	
 Attention:
 Steven M. Herman, Esq. 

 Facsimile No. (212) 504-6666

 

or addressed as such party may from time to time designate by written
notice to the other parties. For purposes of this Agreement, the term “Business
Day” shall mean a day on which commercial banks are not authorized or
required by law to close in New York, New York. Either party by notice to the
other may designate additional or different addresses for subsequent notices or
communications.

          8.
Joint and Several Liability. If Tenant consists of more
than one person, the obligations and liabilities of each such person hereunder
shall be joint and several. This Agreement shall be binding upon and inure to
the benefit of Agent, Tenant, Landlord (as to Section 4), the Transferee
and their respective successors and assigns.

          9.
Definitions. The term “Landlord” as used herein
shall mean and include the present landlord under the Lease and such landlord’s
predecessors in interest under the Lease, but shall not mean or include Agent.
The term “Property” as used herein shall mean the Property, the
improvements now or hereafter located thereon and the estates therein
encumbered by the Mortgage.

          10.
No Oral Modifications. This Agreement may not be modified
in any manner or terminated except by an instrument in writing executed by the
parties hereto.

5

          11. Governing
Law. This Agreement shall be deemed to be a contract entered into pursuant
to the laws of the State where the Property is located and shall in all
respects be governed, construed, applied and enforced in accordance with the
laws of the State where the Property is located without regard to conflicts of
laws principles.

          12. Inapplicable
Provisions. 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.

          13. Duplicate
Originals; Counterparts. This Agreement may be executed in any number of
duplicate originals and each duplicate original shall be deemed to be an
original. This Agreement may be executed in several counterparts, each of which
counterparts shall be deemed an original instrument and all of which together
shall constitute a single Agreement.

          14. Number
and Gender. Whenever the context may require, any pronouns used herein
shall include the corresponding masculine, feminine or neuter forms, and the
singular form of nouns and pronouns shall include the plural and vice versa.

          15. Further
Acts. Tenant will execute, acknowledge and deliver all instruments as Agent
shall, from time to time, reasonably require in order to confirm to Agent the
rights hereby granted to Agent, carry out the intention or facilitate the
performance of the terms of this Agreement or to record this Agreement, so long
as such instruments do not in any event increase the obligations and
liabilities of Tenant hereunder or otherwise abrogate the rights granted to
Tenant hereunder. Agent will, at no cost or expense to Agent, execute, acknowledge
and deliver all instruments as Tenant shall, from time to time, reasonably
require in order to record this Agreement, so long as such instruments do not
in any event increase the obligations and liabilities of Agent hereunder or
otherwise abrogate the rights granted to Agent hereunder.

          16. Limitations
on Agent’s and Lenders’ Liability. Tenant acknowledges that Lenders are
obligated only to Landlord to make the Loan upon the terms and subject to the
conditions set forth in the Loan Agreement, the Mortgage and the other Loan
Documents. In no event shall Agent, Lenders or the Transferee, nor any heir,
legal representative, successor, or assignee of Agent or Lenders or the
Transferee (Agent, Lender, the Transferee and any such heir, legal representative,
successor or assignee are hereinafter referred to collectively as the “Subsequent
Landlord”) have any liability for the obligations of Landlord under the
Lease unless and until the Subsequent Landlord succeeds to the interests of
Landlord under the Lease. If the Subsequent Landlord succeeds to the interests
of Landlord under the Lease, then Tenant shall look only to the Subsequent
Landlord’s interest in and to the Property and the proceeds thereof 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
the Subsequent Landlord as landlord under the Lease, and no other property or
assets of the Subsequent Landlord shall be subject to levy, execution or other
enforcement procedure for the satisfaction of such remedies; provided, however,
that Tenant may exercise any other right or remedy provided under the Lease or
by law in the event of any such default by the Subsequent Landlord.

6

          17. Consent
by Landlord. Landlord is executing this Agreement for the purpose of (i)
evidencing its consent hereto, (ii) agreeing to be bound by the provisions of
Section 4 hereof and (iii) acknowledging that nothing contained herein or
resulting from the parties’ performance hereof creates any offsets, defenses or
claims under the Loan Documents.

[SIGNATURE PAGE TO FOLLOW]

7

          IN
WITNESS WHEREOF, Agent and Tenant have duly executed this Agreement as of the
date first above written.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 AGENT:

 
	
  

 	
  

 
	
  

 	
 HSBC BANK
 USA, NATIONAL 

 ASSOCIATION, as agent

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
   Name: 

 
	
  

 	
  

 	
   Title: 

 
	
  

 	
  

 	
  

 
	
  

 	
 COTY INC.

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
   Name: 

 
	
  

 	
  

 	
   Title: 

 
	
  

 	
  

 
	
 The
 undersigned accepts and agrees to 

 the provisions of Section 4 hereof:

 	
  

 
	
  

 	
  

 
	
 LANDLORD:

 	
  

 
	
  

 	
  

 
	
 EMPIRE STATE
 BUILDING COMPANY L.L.C.

 	
  

 
	
  

 	
  

 
	
 By:

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
   Name: 

 	
  

 
	
  

 	
   Title: 

 	
  

 

ACKNOWLEDGMENTS

	
  

 	
  

 
	
 STATE OF NEW YORK

 	
 )

 
	
  

 	
 ss.:

 
	
 COUNTY OF NEW YORK

 	
 )

 

          On the ___
day of April, 2012, before me, the undersigned, a Notary Public in and for said
State, personally appeared __________________, personally known to me or proved
to me on the basis of satisfactory evidence to be the individual whose name is
subscribed to the within instrument and acknowledged to me that he executed the
same in his capacity, and that by his signature on the instrument, the
individuals, or the persons upon behalf of which the individual acted, executed
the instrument.

	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 Notary
 Public

 	
  

 

	
  

 	
  

 
	
 STATE OF NEW YORK

 	
 )

 
	
  

 	
 ss.:

 
	
 COUNTY OF NEW YORK

 	
 )

 

          On the ___
day of April, 2012, before me, the undersigned, a Notary Public in and for said
State, personally appeared ________________, personally known to me or proved
to me on the basis of satisfactory evidence to be the individual whose name is
subscribed to the within instrument and acknowledged to me that he executed the
same in his capacity, and that by his signature on the instrument, the
individuals, or the persons upon behalf of which the individual acted, executed
the instrument.

	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 Notary
 Public

 	
  

 

	
  

 	
  

 
	
 STATE OF NEW YORK

 	
 )

 
	
  

 	
 ss.:

 
	
 COUNTY OF NEW YORK

 	
 )

 

          On the ___
day of April, 2012, before me, the undersigned, a Notary Public in and for said
State, personally appeared _________________, personally known to me or proved
to me on the basis of satisfactory evidence to be the individual whose name is
subscribed to the within instrument and acknowledged to me that he executed the
same in his capacity, and that by his signature on the instrument, the
individuals, or the persons upon behalf of which the individual acted, executed
the instrument.

	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 Notary
 Public

 	
  

 

EXHIBIT A 

LEGAL DESCRIPTION

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

          BEGINNING
at the corner formed by the intersection of the southerly side of West 34th
Street with the westerly side of Fifth Avenue;

          THENCE
Southerly along the westerly side of Fifth Avenue, 197 feet 6 inches to the northerly
side of West 33rd Street;

          THENCE
Westerly along the northerly side of West 33rd Street, 500 feet;

          THENCE
Northerly and parallel with the westerly side of Fifth Avenue, 98 feet 9 inches
to the middle line of the block;

          THENCE
Easterly and parallel with the northerly side of West 33rd Street, 75 feet;

          THENCE
again Northerly and parallel with the westerly side of Fifth Avenue and part of
the distance through a party wall, 98 feet 9 inches to the southerly side of
West 34th Street;

          THENCE
Easterly along the southerly side of West 34th Street, 425 feet to the comer
aforesaid, the point or place of BEGINNING.

EXHIBIT B 

LEASE DESCRIPTION

Agreement of Lease between Empire State Building Company L.L.C. and
Coty Inc. dated July 14, 2008 as modified by that certain (i) Commencement Date
Agreement dated as of January 14, 2009, (ii) First Lease Modification Agreement
dated as of March 17, 2009, (iii) Second Lease Modification Agreement dated May
19, 2011 and (iv) Third Lease Modification Agreement dated April ____ , 2012.

Leased Premises: The entire rentable area of the fourteenth (14th)
floor, a portion of the fifteenth (15th) floor, Storerooms 15A & 15C, and
the entire rentable area of the sixteenth (16th) and seventeenth (17th) floors
of the Building.

EXHIBIT A

LEGAL DESCRIPTION

EXHIBIT B 

LEASE DESCRIPTION

	
  

 	
  

 	
  

 	
  

 
	
 Lease:

 	
  

 	
  

 
	
  

 	

 

 
	
  

 	
  

 
	
 Amendments
 (if any):

 	
  

 
	
  

 	

 

 
	
  

 	
  

 
	
 Leased
 Premises:

 	
  

 
	
  

 	

 

 
	
  

 	
  

 

EXHIBIT D

ESCROW AGREEMENT FOR LANDLORD’S SAOP
CONTRIBUTION

EMPIRE STATE BUILDING COMPANY L.L.C.

350 Fifth Avenue, Third Floor

New York, New York 10118

As of April ___ , 2012

Coty Inc.

Two Park Avenue

New York, New York 10016

          Re:
Empire State Building, New York, New York

Ladies and
Gentlemen:

          Reference
is hereby made to the following documents:

          (i)
that certain lease (“Original Lease”) dated as of July 14, 2008
between Empire State Building Company L.L.C., as landlord (“Landlord”) and Coty
Inc., as tenant (“Tenant”), covering certain space (the “Original Demised
Premises”) consisting of the entire rentable area of the 14th floor, and a portion of the
15th floor, of the building (“Building”) known as the Empire State
Building, 350 Fifth Avenue, New York, New York, which Original Lease was
modified by a certain Commencement Date Agreement dated as of January 14, 2009
(“Commencement Date Agreement”), by a certain First Lease Modification
Agreement dated as of March 17, 2009 (“First Modification”), and by a certain
Second Lease Modification Agreement dated as of May 19, 2011 (which Original
Lease, as so modified, is hereinafter called the “Lease”); and

          (ii)
that certain proposed Third Lease Modification Agreement,
pursuant to which 15th and 18th portions of the floors of
the Building, and the entire rentable area of the 19th floor of the
Building, will be added to the premises demised under the Lease (the “Proposed
Modification”).

          Pursuant to
the First Modification, certain storage space on the fifteenth floor of the
Building (the “Storage Space”) was added to the premises demised under the
Original Lease.

          Pursuant to
the Second Modification, certain office space consisting of the entire rentable
area of the 16th and 17th floors of the Building (the
“First Additional Office Space”) was added to the premises demised under the
Original Lease, as modified by the Commencement Date Agreement and the First
Modification, so that, as of the date hereof, the premises demised under the
Lease consists of the Original Demised Premises, the Storage Space and the
First Additional Office Space (which are hereinafter collectively called the
“Existing Demised Premises”).

          HSBC Bank
USA, National Association (“HSBC”), the holder of a certain first mortgage
currently encumbering the Building (the “HSBC Mortgage”), is not willing to
assume 

responsibility for the payment of any unpaid portion of Landlord’s SAOP
Contribution (as such term is defined in Article 8C(iii) of the Proposed
Modification) if HSBC succeeds to the interest of Landlord under the Lease, as
modified by the Proposed Modification, notwithstanding its agreement to enter
into a non-disturbance agreement with Tenant. Tenant is not willing to execute
and deliver the Proposed Modification unless and until Landlord provides Tenant
with adequate security for the payment of any portion of Landlord’s SAOP
Contribution remaining unpaid if, as and when HSBC succeeds to the interest of
Landlord under the Lease, as modified by the Proposed Modification. As an
inducement to Tenant to execute and deliver the Proposed Modification, Landlord
is willing to provide such adequate security by depositing the amount of
Landlord’s SAOP Contribution (i.e., $8,079,874.00) into escrow, in accordance
with the terms and conditions hereinafter set forth.

          Therefore,
it is hereby agreed as follows:

          1.
Capitalized terms not defined herein shall have the meanings ascribed to such
terms in the Lease and the Proposed Modification.

          2.
Simultaneously with the execution and delivery of this letter
agreement by Landlord and Tenant, Landlord deposited the sum of $8,079,874.00
(the “SAOP Escrow Deposit”) with Landlord’s attorneys, David J. Bleckner, P.C.
(“Escrowee”), which shall hold such sum in escrow, in an interest bearing
attorney escrow account at Citibank, N.A. (or another bank selected by
Escrowee, notice of which shall be given to Landlord and Tenant), in accordance
with the terms and conditions of this letter agreement.

          3. The SAOP
Escrow Deposit shall be disbursed by Escrowee as follows:

                    A.
If, following HSBC’s succeeding to Landlord’s interest under the Lease, as
modified by the Proposed Modification, HSBC shall refuse to pay any unpaid
portion of Landlord’s SAOP Contribution (or interest or legal fees due in
connection therewith) when due, then, within two (2) business days after
Escrowee’s receipt of Tenant’s written demand therefor (accompanied by the
documentation set forth in clauses (a), (b) and (c) of Article 8C(iii) of the
Proposed Modification), Escrowee shall advise Landlord of Tenant’s demand by
sending a copy thereof and the accompanying supporting documentation. If
Landlord shall fail to object in writing to Escrowee’s disbursement of the
amount so demanded within five (5) business days after the date Escrowee’s
notice is given, Escrowee shall pay Tenant the amount so demanded on account of
Landlord’s SAOP Contribution. If Landlord shall timely object to such
disbursement (which objection, if made, shall be based solely on the claim that
Tenant has failed to satisfy the conditions to the disbursement of such funds
pursuant to the provisions of Article 8C(iii) of the Proposed Modification, and
shall be accompanied by an explanation of the reason(s) therefor and details
sufficient to enable Tenant to cure such objection), then Escrowee shall advise
Tenant of Landlord’s objection by sending a copy thereof to Tenant, and
Escrowee shall continue to hold such funds until resolution of the dispute (or,
at its election, shall deposit such funds into court, as hereinafter provided
in Article 4A). Any such dispute shall be resolved by arbitration in accordance
with the provisions of Article 41 of the Original Lease, and if Tenant prevails
in such arbitration proceeding, then Escrowee shall be required to pay Tenant
(from the SAOP Escrow Deposit) the full amount awarded to Tenant in such
proceeding, including, without limitation, 

any attorneys’ fees and/or interest awarded to Tenant in such
proceeding in accordance with the provisions of said Article 8C(iii).

                    B.
In the event that Landlord shall pay Tenant any portion of
Landlord’s SAOP Contribution in accordance with the terms of the Proposed
Modification, then Landlord shall notify Escrowee thereof. Within two (2)
business days after Escrowee’s receipt of Landlord’s notice of such payment,
Escrowee shall notify Tenant that Escrowee intends to refund to Landlord, from
the SAOP Escrow Deposit, an amount equal to the portion of Landlord’s SAOP
Contribution so paid by Landlord. If Tenant shall fail to object in writing to
such refund by Escrowee, within five (5) business days after the date
Escrowee’s notice is given, then Escrowee shall refund such portion of the SAOP
Escrow Deposit to Landlord (and the amount of the SAOP Escrow Deposit which is
required to maintained hereunder shall be deemed reduced by such amount). If
Tenant shall timely object to such refund by Escrowee (which objection, if
made, shall be based solely on the claim that Landlord has failed to actually
pay such portion of Landlord’s SAOP Contribution (or interest or legal fees due
in connection therewith), and shall be accompanied by a reasonably detailed
explanation of the reason(s) therefor), then Escrowee shall advise Landlord of
Tenant’s objection by sending a copy thereof to Landlord, and Escrowee shall
continue to hold such funds until resolution of the dispute (or, at its
election, shall deposit such funds into court, as hereinafter provided in
Article 4A). Any such dispute shall be resolved by arbitration in accordance
with the provisions of Article 41 of the Original Lease.

                    C.
In the event that Tenant shall fail by the fourth anniversary of
the SAOP Commencement Date to perform sufficient Tenant’s SAOP Initial
Installation Work for Landlord’s SAOP Contribution to be fully applied, then
Landlord shall notify Escrowee thereof. Within two (2) business days after
Escrowee’s receipt of such notice from Landlord, Escrowee shall notify Tenant
that Escrowee intends to refund to Landlord, from the SAOP Escrow Deposit, an
amount equal to the then remaining balance of the SAOP Escrow Deposit. If
Tenant shall fail to object in writing to such refund by Escrowee, within five
(5) business days after the date Escrowee’s notice is given, then Escrowee
shall refund such remaining balance of the SAOP Escrow Deposit to Landlord. If
Tenant shall timely object to such refund by Escrowee (which objection, if
made, shall be based solely on the claim that Tenant has, prior to the fourth
anniversary of the SAOP Commencement Date, performed sufficient Tenant’s SAOP
Initial Installation Work for Landlord’s SAOP Contribution to be fully applied,
or that Landlord has not paid interest or legal fees which are then due to
Tenant under the provisions of the Proposed Modification governing Landlord’s
SAOP Contribution, and which objection shall be accompanied by a reasonably
detailed explanation of the reason(s) therefor), then Escrowee shall advise
Landlord of Tenant’s objection by sending a copy thereof to Landlord, and Escrowee
shall continue to hold such funds until resolution of the dispute (or, at its
election, shall deposit such funds into court, as hereinafter provided in
Article 4A). Any such dispute shall be resolved by arbitration in accordance
with the provisions of Article 41 of the Original Lease.

                    D.
All interest earned on the SAOP Escrow Deposit shall be added onto and become
part of the SAOP Escrow Deposit and, to the extent it has not been applied in
accordance with the terms hereof, shall be released to Landlord when Landlord’s
obligations 

under the Lease, as modified by the Proposed Modification, with respect
to Landlord’s SAOP Contribution have been fully satisfied.

          4. A. In
the event of any dispute regarding this letter agreement or the SAOP Escrow
Deposit, or uncertainty as to the duties of Escrowee hereunder, then except as
otherwise expressly provided for herein, Escrowee shall pay the SAOP Escrow
Deposit or disputed portion thereof, as the case may be, into court pursuant to
the relevant statute.

                    B.
The parties agree jointly to defend (by attorneys selected by Escrowee),
indemnify and hold harmless Escrowee against and from any claim, judgment,
loss, liability, cost or expense resulting from any dispute or litigation
arising out of or concerning Escrowee’s duties or services hereunder. This
indemnity shall include, without limitation, reasonable attorneys’ fees and
disbursements either paid to retain attorneys or representing the fair value of
legal services rendered by Escrowee itself.

                    C.
Escrowee shall not be liable for any error in judgment or for any act done or
step taken or omitted in good faith, or for any mistake of fact or law, except
for Escrowee’s own gross negligence or willful misconduct. Notwithstanding
anything contained in this letter agreement to the contrary, Escrowee shall
have no obligation or responsibility to determine the validity of any objection
by either Landlord or Tenant to the disbursement of all or any part of the SAOP
Escrow Deposit; it being understood and agreed that such determination shall be
made solely by the arbitrators in any arbitration proceeding relating to such
objection.

                    D.
The parties acknowledge that Escrowee is merely a stakeholder. Upon payment of
the SAOP Escrow Deposit pursuant to this letter agreement, Escrowee shall be
fully released from any and all liability and obligations with respect to the
SAOP Escrow Deposit.

                    E.
It is acknowledged and agreed that Escrowee is the attorney for Landlord and
that Escrowee shall be entitled to represent Landlord in any lawsuit, except if
same relates to the Escrow Deposit, unless the SAOP Escrow Deposit has been
deposited into court by Escrowee, as hereinabove provided (in which case
Escrowee shall be entitled to represent Landlord in such lawsuit).

                    F.
Any notice or communication to Escrowee shall be in writing and either (a)
delivered by hand or by overnight courier, with receipt acknowledged in either
case, to Escrowee at 350 Fifth Avenue, Suite 2816, New York, New York 10118, or
(b) given by telecopier to (212) 279-4495, in either case, Attn: David J.
Bleckner, Esq. Each notice to Escrowee shall be deemed given when received (or
refused). Any notice or communication to Landlord or Tenant shall be governed
by the notice provisions of the Original Lease.

          5. The
provisions of this letter agreement shall be governed by and construed in
accordance with the internal laws of the State of New York applicable to
agreements made and to be performed wholly in the State of New York, without
regard to principles of conflicts of law.

          6. This
letter agreement shall bind and inure to the benefit of the parties hereto,
their heirs, personal representatives, successors and permitted assigns.

          7. This
letter agreement may not be modified, amended, altered or discharged except by
an instrument in writing signed by the parties hereto.

          8. This
letter agreement may be executed in counterparts, each of which shall be an
original and all of which counterparts taken together shall constitute one and
the same agreement.

          9. This
letter agreement supersedes any and all understandings and agreements between
the parties with respect to the subject matter hereof.

          10. In the
event that any provision of this letter agreement shall be held to be invalid
or unenforceable in any respect, the validity, legality or enforceability of
the remaining provisions of this letter agreement shall be unaffected thereby.

          11. This
letter agreement may be executed in two or more counterparts and all
counterparts so executed shall for all purposes constitute one agreement
binding on all of the parties hereto, notwithstanding that all parties shall
not have executed the same counterparts. Facsimile and photocopy signatures on
this letter agreement shall have the same force and effect as originals.

          Please sign
and return a copy of this letter to the undersigned so as to confirm your
agreement with the foregoing.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Very truly
 yours,

 
	
  

 	
  

 
	
  

 	
 EMPIRE STATE
 BUILDING COMPANY L.L.C., 

 Landlord

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
   Name: Peter L. Malkin

 
	
  

 	
  

 	
   Title: Member

 
	
  

 	
  

 
	
 AGREED:

 	
  

 
	
  

 	
  

 
	
 COTY INC.,
 Tenant

 	
  

 
	
  

 	
  

 
	
 By:

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
   Name: 

 	
  

 
	
  

 	
   Title: 

 	
  

 

	
  

 	
  

 	
  

 
	
 DAVID J.
 BLECKNER, P.C., Escrowee

 	
  

 
	
  

 	
  

 
	
 By:

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 Name: David
 J. Bleckner, Esq.

 	
  

 
	
  

 	
 Title:
 President

 	
  

 

EXHIBIT E

18TH FLOOR MUST TAKE PREMISES

[Floor Plan]Exhibit 10.5

COTY INC.

LEASE

for 4th & 5th Floors  

of

ONE PARK AVENUE

October 29, 1999

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Documents and Information Required

 	
  

 	
 Responsible
 Party

 	
  

 	
 Executed
 by

 
	

 

 	

 

 	
  

 	

 

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 I.

 	
 Lease

 	
  

 	
  

 	
 SEPS 

 	
  

 	
 Landlord/Tenant 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 II.

 	
 Schedules
 to Lease

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Schedule A:

 	
 Premises

 	
  

 	
 SEPS

 	
  

 	
 N/A

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Schedule B:

 	
 Rules & Regulations

 	
  

 	
 SEPS

 	
  

 	
 N/A

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Schedule C:

 	
 Contractor List

 	
  

 	
 ESG

 	
  

 	
 N/A

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Schedule D:

 	
 Landlord’s Work

 	
  

 	
 SEPS

 	
  

 	
 N/A

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Schedule E:

 	
 HVAC Specifications

 	
  

 	
 SEPS

 	
  

 	
 N/A

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Schedule F:

 	
 Cleaning Specifications

 	
  

 	
 SEPS

 	
  

 	
 N/A

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Schedule G-1:

 	
 ARE One Park Avenue,

 	
  

 	
 SEPS

 	
  

 	
 Landlord/Tenant/Lender

 
	
  

 	
  

 	
 LLC SNDAs for Fee and

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Leasehold Mortgages and

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Ground Lease

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Schedule G-2:

 	
 CDC SNDA

 	
  

 	
 SEPS

 	
  

 	
 N/A

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Schedule H:

 	
 Construction Procedures

 	
  

 	
 SEPS

 	
  

 	
 N/A

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Schedule I:

 	
 Plaque Specifications

 	
  

 	
 ESG

 	
  

 	
 N/A

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 III.

 	
 Additional
 Documents

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 J.            Confidentiality Agreement

 	
  

 	
 Tenant

 	
  

 	
 Landlord/Tenant

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 K.           ACP-5

 	
  

 	
 SEPS

 	
  

 	
 N/A

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 L.            Letter re: Security
 Agreement

 	
  

 	
 SEPS

 	
  

 	
 Landlord/Tenant

 

LEASE

One Park Avenue

4th and 5th Floors

Coty Inc. and One Park Avenue Tenant LLC

	
 

 	
  

 	
  

 
	
Tenant:  

 	
 COTY INC.
(“Tenant”) 

 
	
  

 	
 1325 Avenue
 of the Americas – 34th Floor

 
	
  

 	
 New York,
 New York 10019

 
	
  

 	
 Attention:

 	
 Markus
 Hopmann

 
	
  

 	
 Telephone:

 	
 212-479-4300

 
	
  

 	
  

 
	
Tenant’s
Counsel: 

 	
 DAVIS POLK
& WARDWELL (“DPW”) 

 
	
  

 	
 450
 Lexington Avenue

 
	
  

 	
 New York,
 New York 10017

 
	
  

 	
 Attention:

 	
 Thomas
 Patrick Dore, Jr. Esq.

 
	
  

 	
  

 	
 Christine K.
 Nichols, Esq.

 
	
  

 	
 Telephone:

 	
 PD:
 212-450-4136

 
	
  

 	
  

 	
 CN:
 212-450-6109

 
	
  

 	
 Facsimile:

 	
 212-450-5738

 
	
  

 	
  

 	
  

 
	
Landlord: 

 	
 ONE PARK
AVENUE TENANT LLC (“Landlord”) 

 
	
  

 	
 335 Madison
 Avenue

 
	
  

 	
 New York,
 New York 10285

 
	
  

 	
 Attention:

 	
 Mark
 Teitelbaum

 
	
  

 	
  

 	
 Michael
 Gargano

 
	
  

 	
 Telephone:

 	
 MT:
 212-850-7558

 
	
  

 	
  

 	
 MG:
 212-850-7536

 
	
  

 	
 Facsimile:

 	
 212-681-6096

 
	
  

 	
  

 	
  

 
	
Landlord’s
Counsel: 

 	
 SQUARDRON
ELLENOFF PLESENT & SHEINFELD (“SEPS”) 

 
	
  

 	
 551 Fifth
 Avenue

 
	
  

 	
 New York,
 New York 10176

 
	
  

 	
 Attention:

 	
 Alan Katz,
 Esq.

 
	
  

 	
  

 	
 Laura
 Suesser, Esq.

 
	
  

 	
 Telephone:

 	
 AK:
 212-476-8355

 
	
  

 	
  

 	
 LS:
 212-476-8202

 
	
  

 	
 Facsimile:

 	
 212-697-6686

 
	
  

 	
  

 
	
Broker: 

 	
 INSIGNIA/ESG
(“ESG”) 

 
	
  

 	
 200 Park
 Avenue

 
	
  

 	
 New York,
 New York 10166

 
	
  

 	
 Attention:

 	
 Craig
 Reicher

 
	
  

 	
  

 	
 Richard
 Bernstein

 
	
  

 	
 Telephone:

 	
 CR:
 212-984-8281

 
	
  

 	
  

 	
 RB:
 212-984-8215

 
	
  

 	
 Facsimile:

 	
 212-984-8040

 

	
  

 
	

 

 
	
 
AGREEMENT OF LEASE

 
	
  

 
	
 between

 
	
  

 
	
 ONE PARK AVENUE TENANT LLC

 
	
  

 
	
 Landlord

 
	
  

 
	
 and

 
	
  

 
	
 COTY INC.

 
	
  

 
	
 Tenant

 
	
  

 
	
 FOURTH AND FIFTH FLOORS

 
	
 One Park Avenue

 
	
 New York, New York

 
	
  

 
	
 Squadron, Ellenoff, Plesent &
 Sheinfeld, LLP

 
	
 551 Fifth Avenue

 
	
 New York, New York 10176

 
	

 

 

TABLE
OF CONTENTS

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Page

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 
	
 Article 1

 	
  

 	
  

 
	
 Demise, Premises, Term, Rent

 	
  

 	
 -
 2 -

 
	
  

 	
  

 	
  

 
	
 Article 2

 	
  

 	
  

 
	
 Use and Occupancy

 	
  

 	
 -
 4 -

 
	
  

 	
  

 	
  

 
	
 Article 3

 	
  

 	
  

 
	
 Alterations

 	
  

 	
 -
 7 -

 
	
  

 	
  

 	
  

 
	
 Article 4

 	
  

 	
  

 
	
 Repairs-Floor Load

 	
  

 	
 -14
 -

 
	
  

 	
  

 	
  

 
	
 Article 5

 	
  

 	
  

 
	
 Window Cleaning

 	
  

 	
 -
 16 -

 
	
  

 	
  

 	
  

 
	
 Article 6

 	
  

 	
  

 
	
 Requirements of Law

 	
  

 	
 -16
 -

 
	
  

 	
  

 	
  

 
	
 Article 7

 	
  

 	
  

 
	
 Subordination

 	
  

 	
 -
 17 -

 
	
  

 	
  

 	
  

 
	
 Article 8

 	
  

 	
  

 
	
 Rules and Regulations

 	
  

 	
 -
 20 -

 
	
  

 	
  

 	
  

 
	
 Article 9

 	
  

 	
  

 
	
 Insurance; Property Loss or Damage; Reimbursement

 	
  

 	
 -
 21 -

 
	
  

 	
  

 	
  

 
	
 Article 10

 	
  

 	
  

 
	
 Destruction-Fire or Other Cause

 	
  

 	
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 23 -

 
	
  

 	
  

 	
  

 
	
 Article 11

 	
  

 	
  

 
	
 Eminent Domain

 	
  

 	
 -
 26 -

 
	
  

 	
  

 	
  

 
	
 Article 12

 	
  

 	
  

 
	
 Assignment, Subletting, Mortgage, Etc.

 	
  

 	
 -
 28 -

 
	
  

 	
  

 	
  

 
	
 Article 13

 	
  

 	
  

 
	
 Electricity

 	
  

 	
 -
 40 -

 
	
  

 	
  

 	
  

 
	
 Article 14

 	
  

 	
  

 
	
 Access to Premises

 	
  

 	
 -
 43 -

 
	
  

 	
  

 	
  

 
	
 Article 15

 	
  

 	
  

 
	
 Certificate of Occupancy

 	
  

 	
 -
 45 -

 

I - 1

	
  

 	
  

 	
  

 
	
 Article 16

 	
  

 	
  

 
	
 Conditions of Limitation

 	
  

 	
 -
 46 -

 
	
  

 	
  

 	
  

 
	
 Article 17

 	
  

 	
  

 
	
 Remedies and Damages

 	
  

 	
 -
 51 -

 
	
  

 	
  

 	
  

 
	
 Article 18

 	
  

 	
  

 
	
 Fees and Expenses

 	
  

 	
 -
 54 -

 
	
  

 	
  

 	
  

 
	
 Article 19

 	
  

 	
  

 
	
 No Representations by Landlord; Delivery of Premises

 	
  

 	
 -
 54 -

 
	
  

 	
  

 	
  

 
	
 Article 20

 	
  

 	
  

 
	
 End of Term

 	
  

 	
 -
 55 -

 
	
  

 	
  

 	
  

 
	
 Article 21

 	
  

 	
  

 
	
 Quiet Enjoyment

 	
  

 	
 -
 56 -

 
	
  

 	
  

 	
  

 
	
 Article 22

 	
  

 	
  

 
	
 Possession

 	
  

 	
 -
 56 -

 
	
  

 	
  

 	
  

 
	
 Article 23

 	
  

 	
  

 
	
 No Waiver

 	
  

 	
 -
 56 -

 
	
  

 	
  

 	
  

 
	
 Article 24

 	
  

 	
  

 
	
 Affirmative Waivers

 	
  

 	
 -
 57 -

 
	
  

 	
  

 	
  

 
	
 Article 25

 	
  

 	
  

 
	
 Inability to Perform

 	
  

 	
 -
 57 -

 
	
  

 	
  

 	
  

 
	
 Article 26

 	
  

 	
  

 
	
 Bills and Notices

 	
  

 	
 -
 58 -

 
	
  

 	
  

 	
  

 
	
 Article 27

 	
  

 	
  

 
	
 Escalation

 	
  

 	
 -
 59 -

 
	
  

 	
  

 	
  

 
	
 Article 28

 	
  

 	
  

 
	
 Services

 	
  

 	
 -
 67 -

 
	
  

 	
  

 	
  

 
	
 Article 29

 	
  

 	
  

 
	
 Partnership Tenant

 	
  

 	
 -
 71 -

 
	
  

 	
  

 	
  

 
	
 Article 30

 	
  

 	
  

 
	
 Vault Space

 	
  

 	
 -
 72 -

 
	
  

 	
  

 	
  

 
	
 Article 31

 	
  

 	
  

 
	
 Security Deposit

 	
  

 	
 -
 72 -

 

- 2 -

	
  

 	
  

 	
  

 
	
 Article 32

 	
  

 	
  

 
	
 Captions

 	
  

 	
 -
 75 -

 
	
  

 	
  

 	
  

 
	
 Article 33

 	
  

 	
  

 
	
 Parties Bound

 	
  

 	
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 75 -

 
	
  

 	
  

 	
  

 
	
 Article 34

 	
  

 	
  

 
	
 Broker

 	
  

 	
 -
 75 -

 
	
  

 	
  

 	
  

 
	
 Article 35

 	
  

 	
  

 
	
 Indemnity

 	
  

 	
 -
 75 -

 
	
  

 	
  

 	
  

 
	
 Article 36

 	
  

 	
  

 
	
 Adjacent Excavation-shoring

 	
  

 	
 -
 77 -

 
	
  

 	
  

 	
  

 
	
 Article 37

 	
  

 	
  

 
	
 Miscellaneous

 	
  

 	
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 77 -

 
	
  

 	
  

 	
  

 
	
 Article 38

 	
  

 	
  

 
	
 Rent Control

 	
  

 	
 -
 81 -

 
	
  

 	
  

 	
  

 
	
 Article 39

 	
  

 	
  

 
	
 Landlord’s Right to Perform Tenant’s Obligations

 	
  

 	
 -
 82 -

 
	
  

 	
  

 	
  

 
	
 Article 40

 	
  

 	
  

 
	
 Building Directory

 	
  

 	
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 82 -

 
	
  

 	
  

 	
  

 
	
 Article 41

 	
  

 	
  

 
	
 Landlord’s Contribution

 	
  

 	
 -
 82 -

 
	
  

 	
  

 	
  

 
	
 Article 43

 	
  

 	
  

 
	
 Right of First Offer

 	
  

 	
 -
 90 -

 
	
  

 	
  

 	
  

 
	
 Article 44

 	
  

 	
  

 
	
 Option Space

 	
  

 	
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 92 -

 
	
  

 	
  

 	
  

 
	
 Appendix to Lease

 	
  

 	
  

 
	
 Definitions

 	
  

 	
 -i-

 
	
  

 	
  

 	
  

 
	
 Schedule A

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Premises

 	
  

 	
 A
 – 1

 
	
  

 	
  

 	
  

 
	
 Schedule B

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Rules and Regulations

 	
  

 	
 B
 – 1

 

- 3 -

	
  

 	
  

 	
  

 
	
 Schedule C

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Contractor List

 	
  

 	
 C
 – 1

 
	
  

 	
  

 	
  

 
	
 Schedule D

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Landlord’s Work

 	
  

 	
 D
 - 1

 
	
  

 	
  

 	
  

 
	
 Schedule E

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 HVAC Specifications

 	
  

 	
 E
 – 1

 
	
  

 	
  

 	
  

 
	
 Schedule F

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Cleaning Specifications

 	
  

 	
 F
 – 1

 
	
  

 	
  

 	
  

 
	
 Schedule G-1

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Subordination, Non-Disturbance and Attornment Agreement

 	
  

 	
 G
 – 1

 
	
  

 	
  

 	
  

 
	
 Schedule G-2

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Subordination, Non-disturbance and Attornment Agreement

 	
  

 	
 G
 – 2

 
	
  

 	
  

 	
  

 
	
 Schedule H

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Construction Procedures

 	
  

 	
 H
 – 1

 
	
  

 	
  

 	
  

 
	
 Schedule I

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Plaque Specifications

 	
  

 	
 I
 - 1

 

- 4 -

          AGREEMENT
OF LEASE, made
as of the 29th day of October, 1999, between Landlord and Tenant.

W I T N
E S S T H :

          The parties
hereto, for themselves, their legal representatives, successors and permitted
assigns, hereby covenant and agree as follows:

          Except as
otherwise provided, capitalized terms herein shall have the meaning set forth
in the Appendix to Lease attached hereto and made a part hereof.

ARTICLE 1

DEMISE, PREMISES, TERM, RENT

          Section
1.1 Landlord hereby leases to
Tenant and Tenant hereby hires from Landlord the Premises, upon and subject to
the terms, covenants, provisions and conditions of this Lease, for the Term to
commence on the Commencement Date and to end on the Expiration Date.

          Section
1.2 The Premises shall be leased at
an annual rent (the “Fixed
Rent”) equal to:

          (A)
for the period commencing on the Commencement Date (but subject to the terms
and conditions of Section 1.3(B)) and ending on the day prior to the
second (2nd) anniversary of the Rent Commencement Date, Three Million Five
Hundred Thousand and 00/100 Dollars ($3,500,000) per annum, payable in twelve
equal monthly installments of Two Hundred Ninety One Thousand Six Hundred
Sixty-Six and 66/00 Dollars ($291,666.66).

          (B)
for the period commencing on the second (2nd) anniversary of the Rent
Commencement Date and ending on the day prior to the fifth (5th) anniversary of
the Rent Commencement Date, Three Million Six Hundred Thousand and 00/100
Dollars ($3,600,000) per annum, payable in twelve equal monthly installments of
Three Hundred Thousand and 00/100 Dollars ($300,000.00).

          (C)
for the period commencing on the fifth (5th) anniversary of the Rent
Commencement Date and ending on the day prior to the seventh (7th) anniversary
of the Rent Commencement Date, Three Million Eight Hundred Thousand and 00/100
Dollars ($3,800,000) per annum, payable in twelve equal monthly installments of
Three Hundred Sixteen Thousand Six Hundred Sixty-Six and 66/100 Dollars ($316,666.66).

          (D)
for the period commencing on the seventh (7th) anniversary of the Rent
Commencement Date and ending on the day prior to the tenth (10th) anniversary
of the Rent Commencement Date, Three Million Nine Hundred Thousand and 00/100
Dollars ($3,900,000) per annum, payable in twelve equal monthly installments of
Three Hundred Twenty-Five Thousand and 00/100 Dollars ($325,000.00).

- 2 -

          (E) for the
period commencing on the tenth (10th) anniversary of the Rent Commencement Date
and ending on the Fixed Expiration Date, Four Million and 00/100 Dollars ($4,000,000) per
annum, payable in twelve equal monthly installments of Three Hundred
Thirty-Three Thousand Three Hundred Thirty-Three and 33/100 Dollars ($333,333.33).

          Section 1.3 (A) Tenant shall pay
the aforesaid Fixed Rent in lawful money of the United States which shall be
legal tender for payment of all debts and dues, public and private, at the time
of payment, in equal monthly installments in advance as aforesaid, on the first
(1st) day of each calendar month during the Term commencing on the Rent
Commencement Date, at the office of Landlord or such other place as Landlord
may designate. Tenant covenants and agrees to pay all Fixed Rent, Escalation
Rent and Additional Rent in accordance with the terms of this Lease. Tenant
shall pay all such Fixed Rent, Escalation Rent and Additional Rent promptly
when due, without notice or demand therefor and without any set-off, offset,
credit, abatement or deduction of any kind whatsoever. Fixed Rent and
Escalation Rent shall be payable when due either by (x) wire transfer of funds to an account
designated from time to time by Landlord or (y) a check drawn on a bank which
is a member of the New York Clearing House Association or a successor thereto
delivered to Landlord’s office as aforesaid.

          (B)
Notwithstanding the foregoing provisions of this Lease, provided no Event of Default
shall have occurred and be continuing under this Lease, the Fixed Rent due and
payable pursuant to Section 1.2 hereof shall be abated for the eight month
period (the “Abatement Period”) beginning on the Commencement Date and
ending on the day immediately before the date which is eight months after the
Commencement Date, but there shall be no other abatements of Rental during the
Term except as in this Lease specifically provided. The date immediately
following the expiration of the Abatement Period is herein called the “Rent
Commencement Date.”

          Section 1.4 No payment by Tenant or receipt or acceptance by Landlord of a lesser
amount than the correct Fixed Rent, Escalation Rent or Additional Rent 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.

          Section 1.5 If any of the Fixed Rent,
Escalation Rent or Additional Rent due and 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 material 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

- 3 -

(but
not in excess of the amounts reserved therefor under this Lease). Upon the
termination of such legal rent restriction, (a) the Fixed Rent, Escalation Rent
and/or Additional Rent 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, Escalation
Rent and/or Additional Rent which would have been paid pursuant to this Lease
but for such legal rent restriction less (ii) the Fixed Rent, Escalation Rent
and/or Additional Rent paid by Tenant, or received by Landlord with respect to
the Premises, during the period such legal rent restriction was in effect.

          Section 1.6 Escalation Rent and all other Additional Rent of every kind shall be
paid at the times and in the manner set forth in this Lease and shall be deemed
to be rent, and Tenant’s failure to pay same shall be considered a failure to
pay rent hereunder, and Landlord shall be entitled to all rights and remedies
provided herein or by law or in equity in connection therewith. Any Rent or
damages payable under this Lease and not paid when due shall bear interest at
the Applicable Rate from the due date until paid, and the interest shall be
deemed Additional Rent. If Tenant is in arrears in the payment of Rent, Tenant
waives Tenant’s right, if any, to designate the items against which any
payments made by Tenant are to be credited, and Landlord may apply any payments
made by Tenant to any items Landlord sees fit, regardless of any
request by Tenant. Except as otherwise specified in this Lease, all Additional
Rent shall be due and payable by Tenant within thirty (30) days after Landlord
has rendered its bill therefor.

ARTICLE 2

USE AND OCCUPANCY

          Section 2.1 (A) Tenant shall use and occupy
the Premises for executive, administrative and general offices and for other
ancillary legal office uses related to Tenant’s business activities which do
not violate the certificate of occupancy for the Building or any Requirement of
Law and are consistent with other office buildings of similar type and
character, and for no other purpose, and which ancillary uses shall include (1)
showrooms for product demonstrations; (2) one or more Dwyer Units for the
exclusive use of Tenant; (3) the sale, by vending machines, exclusively to
Tenant and its guests (but not to other persons) of soft drinks, food, candy
and cigarettes; (4) facilities for photographic, multilith and multigraph
reproductions and offset, laser or other types of printing in connection with
the business of Tenant and Tenant’s marketing efforts, including the production
of reproduced and printed material for or on behalf of Tenant and its
customers, provided such activities do not cause any excessive noise or noxious
smells in the Premises or the Building or otherwise cause a nuisance to or
interfere with the occupancy of other tenants or occupants in the Building; (5)
data processing and word processing in connection with the business of Tenant,
including data and word processing for or on behalf of Tenant and any of its
customers as set forth herein; (6) video display and/or screening and/or media
rooms exclusively for the use of Tenant and its customers, provided that this
clause (6) shall not be deemed to permit an auditorium or other assembly
space which would require the issuance of a public assembly or other permit
(unless Tenant pays any and all costs in connection with obtaining such
permit); (7)

- 4 -

conference
rooms; (8) classrooms for training and/or presentations exclusively for the use
of Tenant and its customers; (9) executive placement services and travel agency
activities, in each case provided exclusively for Tenant and its customers;
(10) a medical and/or nurse’s office, in each case provided exclusively for
Tenant; and (11) lavatories, sink rooms and shower services, in each case
provided exclusively for the use of Tenant and its customers. In addition to
the requirements for ancillary uses set forth above, with respect to each Dwyer
Unit, Tenant shall (i) cause all food preparation areas to be properly
ventilated so that no odor shall emanate from the Premises to any other portion
of the Building, (ii) bag all wet garbage and place the same in containers that
prevent the escape of odor, (iii) have adequate drainage and exhaust systems
which shall extend and vent to the exterior of the Building pursuant to plans
and specifications acceptable to Landlord, (iv) keep and maintain each Dwyer
Unit in a clean and sanitary condition, free of vermin and refuse, and contract
directly with the cleaning company servicing the Building for the removal of
all refuse and garbage occasioned thereby and (v) at Landlord’s option, have
one or more water meters installed, at Tenant’s expense, to measure Tenant’s
use of water in the Dwyer Unit. The foregoing shall not be construed to permit
Tenant to use any Dwyer Unit for purposes of operating a restaurant or
otherwise dispensing food to the general public. All of the provisions of this
Lease shall be applicable to the installation, maintenance and operation of the
Dwyer Units.

          (B) As a
further clarification of the provisions of Section 2.1 (A), Tenant shall
not use the Premises or any part thereof, or permit the Premises or any part
thereof to be used (1) except as specifically provided in Section 2.1 (A)(4),
for the business of photographic, multilith or multigraph reproductions or
offset printing; (2) for a banking, trust company, depository, guarantee or
safe deposit business (other than a cashier’s window provided exclusively for
Tenant’s employees); (3) as a savings bank, a savings and loan association, or
as a loan company; (4) for the sale of travelers checks, money orders, drafts,
foreign exchange or letters of credit or for the receipt of money for
transmission; (5) as a stockbroker’s or dealer’s office or for the underwriting
or sale of securities; (6) by the United States government, the City or State
of New York, any foreign government, the United Nations or any agency or
department of any of the foregoing; (7) for the preparation, dispensing or
consumption of food or beverages in any manner whatsoever, except for the
consumption by Tenant’s officers, employees and business guests; (8) as an
employment agency, executive search firm or similar enterprise, labor union,
travel agency, school, or vocational training center (except for the training
of employees of Tenant intended to be employed at the Premises for the conduct
of Tenant’s business); (9) as a barber shop or beauty salon; (10) as a
physician’s office or dentist’s office or any other medical use; (11) as a drug
rehabilitation clinic; (12) as an off-track betting or other betting
establishment; (13) any charitable, religious, union or other not-for-profit
organization or any tax exempt entity within the meaning of Section 168(h)(2)
of the Internal Revenue Code of 1986, as amended; (14) the conduct of obscene,
pornographic or similar or dissimilar disreputable activities or for any
unlawful use or for any dangerous or noxious trade or business; or (15) for any
purpose which would require a “special permit” as such term is defined in the
Zoning Regulation of the City of New York, as the same may be amended from time
to time.

- 5 -

          Section 2.2 Tenant shall, at its sole cost and expense, obtain and maintain all
necessary licenses and permits from Governmental Authorities for the operation
of its business in the Premises and shall at all times fully comply with their
terms and provisions, but nothing contained herein shall make the issuance of
any such permit or license a precondition to the effectiveness of this Lease.
Additionally, should Alterations or Tenant’s use of the Premises require any
modification or amendment of any certificate of occupancy for the Building
(including such modification of the certificate of occupancy for the Building
as may be necessary for Tenant to occupy the Premises), Tenant shall, at its
expense, take all actions necessary in order to enable Landlord to procure any
such modification or amendment and shall reimburse Landlord (as Additional
Rent) for all costs and expenses Landlord incurs in connection with 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 consent to any work
requiring such modifications or amendments of any certificate of occupancy, or
to effect such modifications or amendments of any certificate of occupancy.

          Section 2.3 Tenant and its agents, employees, invitees and contractors shall not
use, handle, manufacture, store or dispose of any Hazardous Materials on, under
or about the Premises (except cleaning fluids of a type customarily used by
tenants occupying space comparable to the Premises and used by Tenant for
purposes of cleaning and maintaining the Premises (“Permitted Materials”),
which Permitted Materials shall be used, handled, stored and disposed of in
accordance with all Requirements of Law and otherwise in a safe manner). If
Landlord believes that the Premises have become contaminated with any Hazardous
Materials, Landlord, in addition to its other rights under this Lease, may,
upon reasonable notice, enter upon the Premises and obtain samples from the
Premises, for the purposes of analyzing the same to determine whether and to
what extent the Premises have become so contaminated and Tenant shall reimburse
Landlord for the cost of such inspection, sampling and analysis. Tenant shall
also reimburse Landlord for the costs of such inspection, sampling and analysis
conducted in other portions of the Building if Hazardous Materials are present
therein due to Tenant’s or its agents’, employees’, invitees’ or contractors’
acts or negligent or wrongful omissions. If Landlord reasonably determines that
the Premises or the Building are so contaminated, then, upon Landlord’s
request, Tenant shall, at its sole cost and expense, immediately remove such
Hazardous Materials in compliance with all Requirements of Law and to the
reasonable satisfaction of Landlord. Notwithstanding the foregoing provisions
of this Section 2.3, Tenant shall have the right to use and store perfume,
fragrances and other cosmetic samples on the Premises in connection with
Tenant’s business, provided, that (i) such products shall not be Hazardous
Materials as defined under this Lease, other than being more flammable than
ordinary office products, (ii) Tenant shall use and store such products in
properly ventilated areas so that no odor shall emanate from the Premises to
any other portion of the Building and (iii) Tenant shall dispose of all refuse
with respect to such products in containers that prevent the escape of odor.

          Section 2.4 Notwithstanding anything in this Lease to the contrary, Tenant shall
not use or permit the use of the Premises or any part thereof in any way which
would violate any of the covenants, agreements, terms, provisions and
conditions of this Lease or any

- 6 -

Requirement
of Law or for any unlawful purposes or in any unlawful manner or in violation
of any certificate of occupancy for the Building or the Premises, and Tenant
shall not permit the Premises or any part thereof to be used in any manner or
anything to be done, brought into or kept therein which, (i) in Landlord’s sole
determination, shall impair or interfere with (x) the exterior appearance of
the Building or the Premises, or (y) any
of the Building Systems, the Basic Construction of the Building or the proper
and economic cleaning or other servicing of the Building or the Premises or (z)
the use of any of the other areas of the Building by, or occasion discomfort,
inconvenience or annoyance to, any of the other tenants or occupants of the
Building, or (ii) in Landlord’s reasonable determination, impair or interfere
with the character or reputation of the Building as a first class office
Building. Tenant shall not use or permit the use of the Premises in any way
which in the reasonable determination of Landlord would create a nuisance,
public or private, or which might cause injury to the Building or the Premises
or any Building Systems or to any person or property, or which would discharge
fumes, vapors or odors outside the Premises.

ARTICLE 3

ALTERATIONS

          Section 3.1 (A) Tenant shall not make any Alterations of any kind without
Landlord’s prior consent. Landlord agrees not to unreasonably withhold or delay
its consent to any proposed nonstructural Alterations, provided and on
condition that such Alterations, in Landlord’s reasonable determination (i) do
not affect any part of the Building, (including, but not limited to, the
Building Systems, Basic Construction of the Building and the exterior of the
Building) other than the Premises, (ii) do not adversely affect any service
required to be furnished by Landlord to Tenant or to any other tenant or
occupant of the Building, (iii) do not reduce the value or utility of the
Building, (iv) do not affect any certificate of occupancy for the Building or
the Premises, (v) do not impair or adversely affect the character or reputation
of the Building and (vi) are in conformance with commercially accepted
standards applicable to other buildings of similar type and character in the
Borough of Manhattan. Tenant may make Decorative Alterations and Minor HVAC
Alterations in and to the Premises without the consent of Landlord provided
that Tenant delivers notice thereof to Landlord at least five (5) days prior to
the commencement thereof, including plans and specifications, if any, or
reasonably detailed proposals of Tenant’s contractor which shall contain
substantially complete information and, if available, dimensions, with respect
to such Decorative Alterations and Minor HVAC Alterations, and if Tenant shall
otherwise conform to the requirements of this Article 3, including
without limitation the insurance requirements under Section 3.1 (B).

          (B) (1)
Prior to making any Alterations, including without limitation the Initial
Alterations, Tenant shall (i) at least thirty (30) days prior to making any of
same, submit to Landlord detailed plans and specifications (including without
limitation layout, architectural, mechanical and structural drawings) for each
proposed Alteration and shall not commence any such Alteration without first
obtaining Landlord’s approval of such plans and specifications, which, in the
case of nonstructural Alterations meeting the criteria set forth in Section
3.1 (A), shall not be unreasonably withheld or delayed, (ii) at Tenant’s expense, obtain all permits,
approvals and certificates required by any Governmental Authority and furnish
copies thereof to Landlord promptly after obtaining same, and (iii) furnish to
Landlord duplicate original policies or certificates thereof of worker’s
compensation (covering all persons to be employed by Tenant and Tenant’s contractors
in connection with such Alterations),

- 7 -

employer’s
liability coverage including bodily injury caused by disease with limits of not
less than $250,000 per employee (or such greater amount as shall be designated
by Landlord), commercial public liability insurance (including property damage coverage and broad form
contractual coverage and personal injury) with a combined single limit per
occurrence of not less than $5,000,000 (which amount shall be increased in the
same manner as the $5,000,000 amount is increased pursuant to Section 9.2),
and Builder’s Risk Insurance on an “all risk” basis for full replacement value,
in such form, with such companies and for such periods as Landlord may approve,
in its reasonable discretion, naming Landlord and its agents, the other
Indemnitees, any Lessor and any Mortgagee, as additional insureds; such
policies to be primary in coverage to the full extent thereof without
contribution from any insurance which may be carried by Landlord or its agents
or any of the other Indemnitees. All such policies (and certificates) shall
indicate that they may not be canceled without at least thirty (30) days prior
written notice of cancellation to Landlord, Agent, any Lessor and any
Mortgagee. Promptly following completion of such Alterations, Tenant, at
Tenant’s sole expense, shall obtain certificates of final approval of such
Alterations required by any Governmental Authority and shall furnish Landlord
with copies thereof. All Alterations shall be made and performed in a good and
workmanlike manner strictly in accordance with the plans and specifications
therefor as approved by Landlord, all Requirements of Law and the Rules and
Regulations. All materials and equipment to be incorporated in the Premises as
a result of any Alterations or a part thereof shall be new and of first quality
and no such materials or equipment (other than Tenant’s Property) shall be
subject to any lien, encumbrance, chattel mortgage or title retention or
security agreement. In addition, no Alterations (with the exception of the
Initial Alterations) at a cost for labor and materials (as reasonably estimated
by Landlord’s architect, engineer or contractor) in excess of Five Hundred
Thousand and 00/100 Dollars
($500,000.00) either individually or in the aggregate with any other
Alterations constructed in any twelve (12) month period, but specifically
excluding costs for labor and materials regarding Decorative Alterations, shall
be undertaken prior to Tenant’s delivering to Landlord (i) a performance and payment
bond (issued by a surety company and in form satisfactory to Landlord in its
reasonable discretion), in an amount equal to One Hundred Twenty Five Percent
(125%) of such estimated cost, or (ii) such other security as shall be
satisfactory to Landlord in its reasonable discretion. Notwithstanding the
foregoing, Landlord shall not require a payment and performance bond or other
security with respect to any Alterations to be performed by Tenant with respect
to any Extension Space, Option Space, or Offering Space, provided, that, at the
time of the commencement of such Alterations, Tenant shall have met the
Financial Requirements.

          (2)
Landlord reserves the right to disapprove any plans and specifications in part,
to reserve approval of items shown thereon pending its review and approval of
other plans and specifications, to condition its approval upon Tenant making
revisions to the plans and specifications or supplying additional information,
and, to the

- 8 -

extent
any Alterations require a modification of any certificate of occupancy for the
Building, to condition its approval of any such Alterations on (i) Landlord
having the right to cause all or any portion of the applications to be filed
with the New York City Building Department or any other Governmental Authority
having jurisdiction with respect to such Alterations, at Tenant’s sole cost and
expense, by persons having experience in such filings designated by Landlord,
with Tenant’s approval, not to be unreasonably withheld or delayed and (ii)
Landlord having the right to perform, at Tenant’s sole cost and expense, all
work required to be performed outside of the Premises in order to comply with
the requirements of the New York City Building Department and any other
Governmental Authority having jurisdiction to obtain such modified certificate
of occupancy. 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 or any other Person with respect to adequacy, correctness or efficiency
thereof or otherwise.

          (C)
Notwithstanding anything to the contrary contained in this Lease, with respect
to the Initial Alterations, Landlord, within ten (10) Business Days following
Landlord’s receipt of the plans and specifications therefor as required under Section
3.1 (B)(1), shall approve, disapprove or otherwise act with respect to such
plans and specifications as provided under Section 3.1 (B)(2). If
Landlord rejects the plans and specifications for the Initial Alterations, in
whole or in part, Landlord shall specify in reasonable detail the changes that
will be required in such plans and specifications for the Initial Alterations
in order to obtain Landlord’s approval. Landlord shall approve, disapprove or
otherwise act with respect to any resubmissions of such plans and
specifications for the Initial Alterations within five (5) Business Days after
receipt by Landlord. If Landlord shall fail to approve, disapprove or otherwise
respond as contemplated under Section 3.1 (B)(2) with respect to
Tenant’s plans and specifications within the ten (10) Business Day time period
set forth above, or within the five (5) Business Day time period for resubmissions
set forth above, Landlord shall be deemed to have approved such plans and
specifications or resubmissions, as applicable, provided Landlord fails to
approve, disapprove or otherwise respond as contemplated under Section 3.1
(B)(2) within two (2) Business Days after receipt of an additional written
notice from Tenant to Landlord that requests approval of such plans and
specifications and specifically refers to the provisions of this Section 3.1
(C) and states that such consent will be deemed given upon Landlord’s
failure to respond within such two (2) Business Day period. 

          (D) Tenant
shall be permitted to perform Alterations during the hours of 8:00 A.M. to
6:00 P.M. on Business Days, and during such other hours as Landlord shall
approve, and provided that in all events such work shall not, in Landlord’s
reasonable discretion, materially interfere with or interrupt the operation and
maintenance of the Building or materially interfere with or interrupt the use
and occupancy of the Building by other tenants of the Building. All Alterations
in and to the Premises which may be made by Tenant and which are of a permanent
nature and cannot be removed without damage to the Premises or the Building
shall become and be the property of Landlord upon the Expiration Date and shall
be surrendered to Landlord with the Premises as a part thereof. All Tenant’s
Property installed by Tenant or its equipment lessors, subtenants,

- 9 -

concessionaires
or licensees shall remain the property of Tenant and such lessors, subtenants,
concessionaires and licensees, as the case may be, and, upon the Expiration
Date or at any time during the Term, but subject to the rights of equipment
lessors and lienors under Section 3.7, may be removed from the Premises
by Tenant at Tenant’s option (with the exception of raised flooring and
supplemental air-conditioning-related ductwork distribution and condenser water
piping which, at Landlord’s election, shall remain upon the Premises and become
the property of Landlord upon the expiration or sooner termination of the
Term), except that all of Tenant’s Property which constitutes movable personal
property shall in all events be so removed. Tenant shall repair and restore in
a good and workmanlike manner any damage to the Premises or the Building caused
by such removal. Notwithstanding the foregoing, Landlord, upon notice given at
least thirty (30) days prior to the Expiration Date or upon such shorter notice
as is reasonable under the circumstances upon the expiration of the Term, may
require Tenant to remove any Alterations or Tenant’s Property, and to repair
and restore in a good and workmanlike manner any damage to the Premises or the
Building caused by such removal to the condition the Premises would have been
in immediately prior to such removal had they been designed and constructed
initially without having to accommodate or include such portion of Tenant’s
Property or Tenant’s Alterations being so removed. In such event, Tenant shall
prior to the Expiration Date, at Tenant’s expense, remove all such Alterations
or Tenant’s Property from the Premises and make all such repairs as required by
Landlord. Notwithstanding the foregoing, at the time of the request for
Landlord’s consent to the Initial Alterations or any other Alterations, Tenant
may make written request to Landlord that any or all of such Alterations for
which consent is sought not be required to be removed prior to the Expiration
Date, which written request shall specifically refer to the provisions of this Section
3.1(D), and Landlord shall advise Tenant at the time that such consent is
given whether any such Alterations must be removed prior to the Commencement
Date in connection with its approval of the plans and specifications therefor.
If Landlord shall fail to so indicate in writing at or prior to the time of its
approval or deemed approval of the plans and specifications therefor, Landlord
shall be deemed to have approved such request and Tenant shall not be required
to remove such Alterations, provided Landlord fails to approve or disapprove
such request within two Business Days after receipt of an additional written
notice from Tenant to Landlord that requests approval of such request,
specifically refers to this Section 3.1(D) and states that such consent
will be deemed given upon Landlord’s failure to respond within such two (2)
Business Day period.

          (E) (1) All
Alterations shall be performed by contractors, subcontractors or mechanics
approved by Landlord. Tenant has submitted a list (the “Contractor List”) to
Landlord (containing at least three (3) contractors, subcontractors, or
mechanics), the current version of which is attached hereto as Schedule C.
If Tenant engages any contractor set forth on the Contractor List, Tenant shall
not be required to obtain Landlord’s consent for such contractor unless, prior
to entering into a contract with such contractor or the commencement of work by
such contractor, Landlord shall notify Tenant that such contractor has been
removed from such list. Such Alterations shall also be performed under the
supervision of an architect and, if applicable, engineer, approved by Landlord,
and at Tenant’s sole cost and expense. Without limiting Landlord’s approval

- 10 -

right
as aforesaid, any such architect and engineer shall have at least ten (10)
years experience in providing such services to commercial buildings located in
the Borough of Manhattan. Tenant may prior or simultaneously with the execution
of this Lease with respect to Initial Alterations, and as part of its submission
of plans and specifications as provided in Section 3.1 (B)(1) with respect to
future Alterations, propose additional contractors, subcontractors and
mechanics to be added to the Contractor List, subject to the approval of
Landlord, which approval shall not be unreasonably withheld or delayed.

                    (2)
Notwithstanding the provisions of Section 3.1(B)(1), with respect to any
Alterations affecting the Class E System, Tenant shall be required to engage
Landlord’s Class E Contractor.

                    (3)
Tenant covenants and agrees to pay any contractor it engages the cost of the
work being performed by such contractor in stages as the work progresses
subject only to customary retentions and amounts being disputed in good faith.
In the event of any such dispute, Tenant shall furnish Landlord with all
information relating thereto as Landlord may reasonably request.

          (F) Tenant
shall not, at any time prior to or during the Term, directly or indirectly,
employ, or permit the employment of, any contractor, mechanic or laborer in the
Premises (whether or not Landlord’s approval is required or granted with
respect to such person), whether in connection with any Alterations or
otherwise, if such employment would interfere or cause any conflict with other
contractors, mechanics or laborers engaged in the Building. In the event of any
such interference or conflict, Tenant, upon demand of Landlord, shall cause all
contractors, mechanics or laborers causing such interference or conflict to leave
the Building immediately.

          (G) During
the progress of any Alterations, Landlord reserves the right to inspect all
work being performed in connection therewith, and Tenant agrees that Landlord
and its representatives shall be permitted access and an opportunity to inspect
such work at all reasonable times and upon reasonable notice, but this
provision shall in no event be deemed to impose an obligation on Landlord to so
inspect such work.

          (H) Subject
to the requirements of this Article 3 (other than the approval
requirement under Section 3.1(A) and Section 3.1(B)), Landlord
hereby approves Tenant’s construction of an internal stairway between the
fourth (4th) and fifth (5th) floors of the Premises as part of the Initial
Alterations in any of the proposed locations designated on the floor plan set
forth in Schedule A.

          Section 3.2 Tenant shall reimburse Landlord, as Additional Rent for the reasonable
out-of-pocket costs incurred by Landlord in connection with such Alterations
including, without limitation, the costs incurred by Landlord in reviewing the
plans and specifications and inspecting the work. In addition, Tenant shall pay
any reasonable fee charged by any Lessor or Mortgagee in reviewing the plans
and specifications of such Alterations or inspecting the progress of completion
of the same.

- 11 -

          Section 3.3 (A) Promptly following the Commencement Date, but without relieving
Tenant of the other obligations in this Lease with which it must comply with
respect to the Initial Alterations, Tenant shall commence and with all due
diligence perform and complete the Initial Alterations. The Initial Alterations
shall be performed at Tenant’s sole cost and expense.

          (B) Within
thirty (30) days after completion of any Alterations, Tenant shall deliver to
Landlord general releases and waivers of lien from all contractors,
subcontractors and materialmen involved in the performance of the Alterations
and the materials furnished in connection therewith, and a certificate from
Tenant’s independent architect certifying that (i) the Alterations have been
completed substantially in accordance with the final plans and specifications
therefor, as approved by Landlord and (ii) all contractors, subcontractors and
materialmen have been paid for the Alterations and materials furnished through
such date.

          Section 3.4 All persons employed and materials used in connection with Alterations
shall be delivered to the Premises, and all debris and refuse which is
generated in connection with such Alterations shall be removed from the
Premises, through such elevator(s) as may be designated by Landlord from time
to time (the “Tenant Work Elevator”).

          Section 3.5 In connection with Alterations and any repairs of any kind or nature,
Tenant shall, at its sole cost and expense, strictly comply with all
Requirements of Law and all Construction Procedures. Landlord shall have the
right at all reasonable times, to monitor the subject work for compliance with
such Requirements of Law and Construction Procedures. If Landlord determines
that any of such Requirements of Law or Construction Procedures are not being
strictly complied with, Landlord may immediately require by notice to Tenant
the cessation of all work being performed in or around the Premises until such
time as Landlord is satisfied in its reasonable discretion that such
Requirements of Law or Construction Procedures will be observed. Landlord’s
monitoring of any work in or around the Premises shall not be deemed to be an
assumption of any obligation with respect to such work nor a certification by
Landlord of compliance with any applicable Requirements of Law or Construction
Procedures.

          Section 3.6 Any mechanic’s lien filed against the Premises or the Real Property for
work claimed to have been done for, or materials claimed to have been furnished
to, Tenant shall be discharged by Tenant within twenty (20) days after Tenant
shall have received notice thereof, at Tenant’s sole expense, by payment or
filing the bond required by law. In addition, Tenant, at its expense, shall
promptly 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, which shall be issued by the Department of Buildings
of the City of New York or any other Governmental Authority. 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

- 12 -

or
under Tenant, and against all costs, expenses and liabilities including without
limitation attorney’s fees and disbursements, incurred in connection with any
such lien or encumbrance or any action or proceeding brought thereon. If Tenant
shall fail to cause such lien to be discharged of record or bonded within the
period aforesaid, and if as a result of the filing of such lien, Landlord shall
have received a notice of default from any Lessor or Mortgagee, Landlord may,
but shall not be obligated to, discharge the same of record in any manner
permitted by law. Any amount so paid by Landlord, including all costs and
expenses (including, without limitation, attorneys’ fees and disbursements)
incurred by Landlord in connection therewith, together with interest thereon at
the Applicable Rate, from the date Landlord made such payment or incurred such
cost, shall constitute Additional Rent payable by Tenant under this Lease and
shall be paid by Tenant to Landlord on demand.

          Section 3.7 Tenant will promptly upon the completion of an Alteration deliver to Landlord
“as-built” drawings of any Alterations (with the exception of any Decorative
Alterations and Minor HVAC Alterations) Tenant has performed or caused to be
performed in the Premises.

          Section 3.8 In connection with the removal of any Tenant’s Property, Tenant shall
give Landlord five (5) Business Days’ prior notice of any severance of
connections to any of the Building Systems which may reasonably be expected to
adversely affect the operation thereof. At or before the Expiration Date, Tenant,
at it expense, shall remove from the Premises all of Tenant’s Property (except
such items thereof as Landlord shall have expressly permitted to remain at
Tenant’s request, which properly 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. Any other items of
Tenant’s Property which shall remain in the Premises after the Expiration Date
may, at the sole 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, at Tenant’s sole expense, without accountability, in such manner
as Landlord shall determine. Notwithstanding the foregoing, Tenant shall have
the right to remove (in which event it shall have the obligation to restore the
Premises to its prior condition, reasonable wear and tear and damage by
casualty excepted) or abandon at the end of the Term, in Tenant’s discretion,
all supplemental HVAC equipment paid for by Tenant.

          Section 3.9 Landlord shall provide to Tenant telephone closets or shaft space in
the core of the Building at the location described in the Telecommunications
Pathways Specifications for One Park Avenue prepared by Atkinson, Koven,
Feinberg Engineers, LLP, dated August 19, 1999, for the installation of two (2)
empty conduits with a diameter of four (4”) inches each for communication
risers from the street service entrance, as well as interconnection between the
floors on which the Premises are located. All risers, wiring and other
installations in such telephone closets or shaft space shall be subject to
Landlord’s consent as provided in this Article 3. Without limitation of
the generality of the foregoing, no such installations shall interfere with or
otherwise impair the functioning of any other risers, facilities or
installations of Landlord or of any other tenant.

- 13 -

ARTICLE 4

REPAIRS-FLOOR LOAD

          Section 4.1 Tenant, at Tenant’s
sole expense, shall maintain and take good care of the Independent Systems, the
Premises and the fixtures, equipment and appurtenances in the Premises and make
all repairs and replacements thereto as and when needed to preserve them in good working order and
condition, except for (a) reasonable wear and tear, obsolescence and damage for
which Tenant is not responsible pursuant to the provisions of Articles 10
and 11 and
(b) structural repairs to the Basic Construction of the Building (for which
Landlord shall be responsible except as hereinafter provided). Tenant shall
keep all interior glass, including, without limitation, windows, doors and
skylights, clean and in good condition and repair, and Tenant shall,
immediately replace any interior glass that may be damaged with glass of
substantially the same kind and quality. Notwithstanding the foregoing, all
damage or injury to the Premises or to any other part of the Building, or to
its fixtures, windows, equipment and appurtenances, whether requiring
structural or nonstructural repairs, caused by or resulting from the
carelessness, omission, neglect or improper conduct of, or Alterations made by,
Tenant or Tenant’s agents, employees, invitees or licensees, shall be repaired
at Tenant’s sole expense by Tenant to the satisfaction of Landlord in its
reasonable discretion (if the required repairs are within the Premises and do
not affect the Basic Construction of the Building), or by Landlord (if the
required repairs are outside the Premises and do not affect the Basic
Construction of the Building). Tenant shall also repair all damage to the
Building and the Premises caused by the moving of Tenant’s Property. All the
aforesaid repairs shall be of the same quality and class as similar buildings
in the Borough of Manhattan and shall be made in accordance with the provisions
of Article 3. If Tenant fails after thirty (30) days notice (or such
shorter period as may be required due to an emergency or as Landlord may be
limited to pursuant to any Superior Lease or Mortgage) to proceed with due
diligence to make repairs required to be made by Tenant, the same may be made
by Landlord at the expense of Tenant, and the expenses thereof incurred by
Landlord, with interest thereon at the Applicable Rate for the period
commencing on the date Landlord actually incurs such expenditures and ending on
the date of payment by Tenant, shall be paid to Landlord as Additional Rent
after rendition of a bill or statement therefor. Tenant shall give Landlord
immediate notice of any defective condition in any Building System located in,
servicing or passing through the Premises.

          Section 4.2 Tenant shall not place a load upon any floor in the Premises exceeding
the floor load per square foot area which it was designed to carry and which is
allowed by applicable Requirements of Law. Tenant shall not move any safe,
heavy machinery, heavy equipment, business machines, freight, bulky matter or
bulky or heavy fixtures into or out of the Building without Landlord’s prior
written consent in each instance, which consent shall not unreasonably be
withheld, and shall pay to Landlord all costs incurred by Landlord in
connection therewith. All work in connection therewith shall comply with all
applicable Requirements of Law and the Rules and Regulations, and shall be done
during such hours as Landlord may designate in its reasonable determination.
Business machines and mechanical equipment shall be placed and maintained by
Tenant at

- 14 -

Tenant’s
expense in settings sufficient in Landlord’s reasonable judgment to absorb and
prevent vibration, noise and annoyance to other tenants of the Building. There
shall be no allowance to Tenant for a diminution of rental value and no
liability on the part of Landlord by reason of inconvenience, annoyance or
injury to business arising from Landlord, Tenant or others making, or failing
to make, any repairs, alterations, additions or improvements in or to any
portion of the Building or the Premises, or in or to fixtures, ·appurtenances
or equipment thereof.

          Section 4.3 Landlord shall use its reasonable efforts to minimize interference
with Tenant’s use and occupancy of the Premises in making any repairs,
alterations, additions or improvements (including any of same made pursuant to Section
28.7); provided, however, that Landlord shall have no obligation to employ
contractors or labor at so called overtime or other premium pay rates or to
incur any other overtime costs or expenses whatsoever. The parties acknowledge
and agree that, in connection with any such repair, alteration, addition or
improvement to the Real Property, a so-called “sidewalk bridge” may be erected
by Landlord from time to time and the erection and maintenance of same shall
not constitute a breach of Landlord’s obligations hereunder.

          Section 4.4 Notwithstanding any other provisions of this Lease, if Landlord’s
failure to perform any repairs required to be performed by Landlord under this Article
4 or under Section 14(A)(i) or Landlord’s failure to provide
any services required to be provided by Landlord under Article 28,
renders any material portion of the Premises untenantable for a period of
twenty (20) consecutive Business Days after Tenant has given Landlord written
notice of such untenantability, and if such untenantability continues after the
end of said twenty (20) consecutive Business Day period, and such
untenantability does not otherwise result from Unavoidable Delays or the
negligence or willful misconduct by Tenant, or its agents, employees,
contractors or invitees, then provided that Tenant shall not have continued to
use the Premises or such portion thereof for the conduct of its business during
said period, the Fixed Rent, Escalation Rent and all other Additional Rent
payable hereunder shall be abated (proportionately based upon the portion of
the Premises rendered untenantable) for the period commencing on the
twenty-first (21st) consecutive Business Day of such untenantability after
Landlord’s receipt of such notice of untenantability and shall continue only
until the Premises or such portion thereof shall become tenantable again
regardless of any delay by Tenant in resuming the operation of its business.
For purposes of this Section 4.4, the term “material portion” shall mean
10,000 or more rentable square feet of the Premises.

ARTICLE 5

WINDOW CLEANING

          Tenant
shall not clean, nor require, permit, suffer or allow any window in the
Premises to be cleaned from the outside in violation of Section 202 of the
Labor Law, or any other Requirements of Law.

- 15 -

ARTICLE 6

REQUIREMENTS OF LAW

          Section 6.1 Tenant, at Tenant’s sole cost and expense, shall comply with any and
all Requirements of Law applicable to the Premises and the use and occupancy of
the Premises by Tenant, including, without limitation, the making of Alterations
therein; provided, however, Tenant shall not be obligated to comply with any
Requirements of Law which are applicable to the Basic Construction of the
Building unless the application of such Requirements of Law arises from (w) a
condition which has been created by or at the request of Tenant, (x) Tenant’s
particular manner of use and occupancy of the Premises, (y) a breach of Tenant’s obligations under this
Lease or (z) the Initial Alterations or any other Alterations to the Premises.
Landlord shall (i) deliver the Premises substantially in compliance with all
Requirements of Law applicable to vacant, unoccupied space, (ii) deliver the
bathrooms constructed by Landlord substantially in compliance with all
applicable Requirements of Law and (iii) deliver and maintain those common
areas of the Building that affect Tenant’s occupancy of the Premises
substantially in compliance with all applicable Requirements of Law. Landlord
further covenants that, to the extent required by applicable Requirements of Law,
Landlord shall remove and/or encapsulate any asbestos at the Premises. Tenant
shall not do or permit to be done any act or thing upon the Premises which will
invalidate or be in conflict with a standard Insurance Services Office all-risk
insurance policy; and Tenant shall not do, or permit anything to be done in or
upon the Premises, or bring or keep anything therein, except as now or
hereafter permitted by the New York City Fire Department, New York Board of
Fire Underwriters, New York Fire Insurance Rating Organization or other
authority having jurisdiction and then only in such quantity and manner of
storage as not to increase the rate for fire insurance applicable to the
Building, or use the Premises in a manner which shall increase the rate of fire
insurance on the Building or on property located therein, over that in similar
type buildings or in effect on the Commencement Date. If by reason of Tenant’s
failure to comply with the provisions of this Article 6, the fire
insurance rate shall be higher than it otherwise would be, then Tenant shall
desist from doing or permitting to be done any such act or thing and shall
reimburse Landlord, as Additional Rent, within five (5) Business Days after
demand therefor by notice to Tenant, for that part of all fire insurance
premiums payable by Landlord which shall have been charged because of such
failure by Tenant. In the event that the premiums payable by Landlord under any
of the insurance policies covering the Real Property shall increase as a result
of Tenant’s use of the Premises, Tenant shall pay to Landlord, as Additional
Rent, after demand therefor by notice to Tenant, the amount of any such
increase payable by Landlord. In any action or proceeding wherein Landlord and
Tenant are parties, a schedule or “make up” of rates for the Building or the
Premises issued by the New York Fire Insurance Rating Organization or other
body fixing such fire insurance rates, shall be conclusive evidence of the
facts therein stated and of the several items and charges in the fire insurance
rates then applicable to the Building.

ARTICLE 7

SUBORDINATION

- 16 -

          Section 7.1 (A) This Lease shall be subject and subordinate to each and every
Superior Lease and each and every Mortgage provided, that (i) Landlord shall
cause the current holder of the mortgage encumbering Landlord’s interest in the
Building, the current holder of the mortgage encumbering the Lessor’s fee
interest and the Lessor under the Superior Lease to execute and deliver to
Tenant a Subordination, Non-Disturbance and Attornment Agreement in the form
set forth in Schedule G-1 attached hereto, (ii) to the extent within six
(6) months after the Commencement Date, Landlord enters into a mortgage with
CDC Mortgage Capital, Inc. or its affiliate encumbering Landlord’s interest in
the Building and/or Lessor enters into a mortgage with CDC Mortgage Capital,
Inc. or its affiliate encumbering Lessor’s fee interest, Landlord shall cause
such Mortgagee to execute and deliver to Tenant a Subordination and
Non-Disturbance and Attornment Agreement substantially in the form set forth in
Schedule G-2 attached hereto and (iii) with respect to each future
Superior Lease or Mortgage, such subordination shall be contingent upon
Landlord obtaining and delivering to Tenant a subordination, non-disturbance
and attornment agreement from the Lessor under each Superior Lease and the
Mortgagee under each Mortgage on the then standard form of such Lessor or
Mortgagee (provided, however, that such form must contain only then industry
standard provisions), including without limitation the liability “carve-outs”
set forth in Section 7.1(B). This clause shall be self-operative and no
further instrument of subordination shall be required to make the interest of
any Lessor or Mortgagee superior to the interest of Tenant hereunder. Tenant,
however, shall, at Tenant’s sole cost and expense, execute and deliver within
ten (10) Business Days after request therefor any certificate or other
instrument in recordable form that Landlord or the holder of any Superior Lease
or Mortgage may reasonably request in confirmation of such subordination. If,
in connection with the financing of the Real Property, the Building or the
interest of the lessee under any Superior Lease, or if in connection with the
entering into of a Superior Lease, any lending institution or Lessor shall
request reasonable modifications of this Lease, Tenant shall enter into such
modifications provided that they do not (i) increase the monetary obligations
of Tenant under this Lease, except to a de minimis extent, or (ii) affect or
diminish the rights or increase the obligations of Tenant under this Lease in
any material respect or impair in any material respect the status and rights of
Tenant hereunder, absent the subordination hereinabove provided.

          (B) Except
to the extent contained in any applicable subordination, non-disturbance and
attornment agreement, neither any Mortgagee nor any Lessor, as the case may be,
nor anyone claiming by, through or under such Mortgagee or Lessor, as
applicable, including, without limitation, a purchaser at a foreclosure sale,
shall be:

                    (1)
liable for any act or omission of any prior landlord (including, without
limitation, the then defaulting landlord);

                    (2)
subject to any defense or offsets which Tenant may have against any prior
landlord (including, without limitation, the then defaulting landlord);

- 17 -

                    (3)
bound by any payment of Rental which Tenant might have paid for more than the one
month to any prior landlord (including, without limitation, the than defaulting
landlord);

                    (4)
bound by any obligation to make any payment to Tenant which was required to be
made prior to the time such Mortgagee or Lessor succeeded to any prior
landlord’s interest;

                    (5)
bound by any obligation to perform any work or to make improvements to the
Premises except for (i) repairs, restoration and maintenance to the Premises
and/or the Building pursuant to the provisions of Article 4, (ii)
repairs to the Premises or any part thereof as a result of damage by fire or
other casualty pursuant to this Lease, but only to the extent that such repairs
can be reasonably made from the proceeds of any insurance (net of collection,
enforcement and other costs) actually made available to such Mortgagee or
Lessor and (iii) repairs to the Premises and/or the Building as a result of a
partial condemnation pursuant to Article 11, but only to the extent that
such repairs can be reasonably made from the proceeds of any award (net of
collection, enforcement and other costs) actually made available to such
Mortgagee or Lessor;

                    (6)
bound by any modification, amendment or abridgment of the Lease, or any
cancellation or surrender of the same, made without its prior written approval
to the extent such approval is required pursuant to the terms of the applicable
Mortgage or Superior Lease;

                    (7)
required to account for any security deposit other than any security deposit
actually delivered to such Mortgagee or Lessor; or

          (C) Tenant
hereby irrevocably waives any and all rights it may have in connection with any
zoning lot merger or transfer of development rights with respect to the Real
Property. In confirmation of such waiver, Tenant shall execute and deliver
within ten (10) Business Days after request therefor by notice from Landlord
any certificate or instrument in recordable form or otherwise that Landlord may
request.

          Section 7.2 If at any time prior to the expiration of the Term, any Superior Lease
shall terminate or be terminated for any reason or any Mortgagee comes into
possession of the Real Property or the Building or the estate created by any
Superior Lease by receiver or otherwise, Tenant agrees, at the election and
upon demand of any owner of the Real Property or the Building, or of the
Lessor, or of any Mortgagee in possession of the Real Property or the Building,
to attorn, from time to time, to any such owner, Lessor or Mortgagee or any
person acquiring the interest of Landlord as a result of any such termination,
or as a result of a foreclosure of the Mortgage or the granting of a deed in
lieu of foreclosure, upon the terms and conditions of this Lease, subject to
the provisions of Section 7.1, for the remainder of the Term.
Notwithstanding the foregoing, this Lease shall not terminate by reason of the
termination of any Superior Lease without the prior written consent of each of
the fee owner of the Real Property, the Mortgagee holding a first mortgage on
the fee estate in the Real Property, and the Mortgagee holding a first

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mortgage
on Landlord’s interest in the Real Property. The provisions of this Section
7.2 shall be binding upon and inure to the benefit of any such owner,
Lessor or Mortgagee, and Tenant, and shall apply notwithstanding that, as a
matter of law, this Lease may terminate as between Landlord and Tenant upon the
termination of any such Superior Lease, and shall be self-operative upon any
such demand, and no further instrument shall be required to give effect to said
provisions. Tenant shall, however, from time to time, within ten (10) Business
Days after demand of any such owner, Lessor or Mortgagee, at Tenant’s sole
expense, execute instruments in confirmation of the foregoing provisions of
this Section 7.2, reasonably satisfactory to Landlord and any such
owner, Lessor or Mortgagee, acknowledging such attornment.

          Section 7.3 From time to time, within ten (10) Business Days following request
therefor by notice from Landlord, any Mortgagee or any Lessor, Tenant shall, at
Tenant’s sole expense, deliver to Landlord, such Mortgagee or such Lessor a
statement executed by Tenant, in form reasonably satisfactory to Landlord, such
Mortgagee or such Lessor, (i) stating that this Lease is then in full force and
effect and has not been modified (or if modified, setting forth all
modifications), (ii) setting forth the date to which the Fixed Rent, Escalation
Rent, and all Additional Rent have been paid, (iii) stating that, to
Tenant’s actual knowledge there exist no valid abatements, causes of action,
counterclaims, disputes, defenses, offsets, credits, deductions, or claims
against the enforcement of any of the terms and conditions of this Lease (or,
if any of the foregoing do exist, setting forth the specific nature of the
same), (iv) stating whether Landlord is in default under this Lease, and, if
Landlord is in default, setting forth the specific nature of all such defaults,
(v) stating that Landlord’s Work is complete (or, if not complete, setting
forth in reasonable detail those portions of Landlord’s Work which are not
complete) and (vi) as to any other matters related to this Lease reasonably
requested by Landlord, such Mortgagee or such Lessor. Tenant acknowledges that
any statement delivered pursuant to this Section 7.3 may be relied upon
by any purchaser or owner of the Real Property or the Building, or Landlord’s
interest in the Real Property or the Building or any Superior Lease, or by any
Mortgagee, or by an assignee of any Mortgagee, or by any Lessor or an assignee
of any Lessor.

          Section 7.4 As long as any Superior Lease or Mortgage shall exist, Tenant shall
not seek to terminate this Lease by reason of any act or omission of Landlord
until Tenant shall have given notice of such act or omission to all Lessors and
Mortgagees at such addresses as shall have been furnished in writing to Tenant
by such Lessors and Mortgagees and, if any such Lessor or Mortgagee, as the
case may be; shall have notified Tenant within thirty (30) days following
receipt of such notice of its intention to remedy such act or omission, until a
reasonable period of time shall have elapsed following the giving of notice,
during which period such Lessors and Mortgagees shall have the right, but not
the obligation, to remedy such act or omission, which period shall be extended
if such Lessor or Mortgagee must gain possession of the Building or the Real
Property, as the case may be, in order to remedy such act or omission, for the
time reasonably required to obtain such possession. Tenant further agrees not
to exercise any such right if the Mortgagee or Lessor, as applicable, commences
curing such act or omission within a reasonable time after having received
notice thereof and thereafter

- 19 -

diligently prosecutes such
cure to completion.

          Section 7.5 Tenant shall, without
charge, at any time and from time to time as Landlord may reasonably require,
deliver to Landlord within ten (10) Business Days after written request
therefor by Landlord (i) copies of the most current audited financial
statements of Tenant certified by an independent certified public accountant
(but no more than once in any twelve (12) month period) and (ii) if a request
is made to Landlord by any Mortgagee or Lessor, such further quarterly updated
detailed unaudited financial information prepared by Tenant in the Tenant’s
ordinary course of business, and certified by an officer of Tenant, as prepared
in the Tenant’s ordinary course of business, provided that such Mortgagee or
Lessor shall enter into a confidentiality agreement with Tenant in a form reasonably satisfactory to both Tenant
and such Mortgagee or Lessor.

ARTICLE 8

RULES AND REGULATIONS

          Tenant and
Tenant’s contractors, employees, agents, visitors, invitees and licensees shall
comply with the Rules and Regulations. Landlord shall have the right from time
to time to make reasonable changes in the Rules and Regulations. Nothing in
this Lease contained shall be construed to impose upon Landlord any duty or
obligation to enforce the Rules and Regulations or terms, covenants or
conditions in any other lease against any other tenant, and Landlord shall not
be liable to Tenant for violation of the same by any other tenant, its
employees, agents, visitors, invitees or licensees. Landlord shall not apply
the Rules and Regulations in a discriminatory manner.

ARTICLE 9

INSURANCE; PROPERTY LOSS OR DAMAGE; REIMBURSEMENT

          Section 9.1 (A) Any Building employee to whom any property shall be entrusted by
or on behalf of Tenant shall be deemed to be acting as Tenant’s agent with
respect to such property and neither Landlord nor its agents shall be liable
for any damage to property of Tenant or of others entrusted to employees of the
Building, nor for the loss of or damage to any property of Tenant by theft or
otherwise except if caused by the gross negligence or willful misconduct of
Landlord or its agents or employees. Neither Landlord nor its agents shall be
liable for any injury or damage to persons or property, or interruption of
Tenant’s business, resulting from fire or other casualty, nor shall Landlord or
its agents be liable for any such damage caused by other tenants or persons in
the Building or caused by construction of any private, public or quasi-public
work; nor shall Landlord be liable for any latent defect in the Premises or in
the Building. Nothing herein shall affect any right of Landlord to the
indemnity from Tenant to which Landlord may be entitled under Article 31
in order to recoup for payments made to compensate for losses of third parties.
Notwithstanding anything to the contrary contained herein, in no event and
under no circumstances shall Landlord be liable to Tenant for so-called
“consequential damages.”

          (B)
If at any time any windows of the Premises are temporarily closed or

- 20 -

darkened
by reason of repairs, maintenance, alterations or improvements to the Building,
or any of such windows are permanently closed, darkened, bricked-up or
otherwise blocked due to any Requirements of Law, Landlord shall not be liable
for any damage Tenant may sustain thereby and Tenant shall not be entitled to
any compensation therefor nor abatement of Fixed Rent or any other item of
Rental nor shall the same release Tenant from its obligations hereunder nor
constitute an eviction. Tenant acknowledges that the foregoing provisions,
without being limited to Requirements of Law, shall apply, without limitation,
to the erection and maintenance of any hoist elevator or elevators which may be
erected on the side(s) of the Building from time to time in connection with any
renovation of the Building or the construction of one or more tenant
installations, which hoist elevator(s) Landlord may maintain in place until
such time as such renovation or tenant installations are completed.

          (C) Tenant
shall immediately notify Landlord of any fire or accident in the Premises.

          Section 9.2 Tenant shall obtain and keep in full force and effect during the Term
at its sole cost and expense:

          (A)
a policy of commercial general public liability and property damage insurance
with a broad form contractual liability endorsement and coverage for personal
injury under which Tenant is named as the insured, and the Indemnitees, any
Lessors and any Mortgagees are named as additional insureds, such policies to
be primary in coverage to the full extent thereof without contribution from any
insurance which may be carried by the Indemnitees, or such Lessors or
Mortgagees. The minimum limits of liability shall be a combined single limit
with respect to each occurrence of not less than $5,000,000, which amount shall
be increased or decreased from time to time to those amounts and coverages of
insurance which in Landlord’s reasonable judgment are then being customarily
required by prudent landlords of similar office buildings in the Borough of
Manhattan. If the aggregate limit applying to the Premises is reduced by the
payment of a claim or establishment of a reserve equal to or greater than 50%
of the annual aggregate, Tenant shall immediately arrange to have the aggregate
limit restored by endorsement to the existing policy or the purchase of an
additional insurance policy unless, in Landlord’s reasonable judgment, Tenant
maintains sufficient excess liability insurance to satisfy the liability
requirements of this Lease without the reinstatement of the aggregate limit.

          (B) a fire
and other casualty policy insuring the full replacement value of all of the
Alterations and all of Tenant’s Property located in the Premises against loss
or damage by fire, theft and such other risks or hazards as are insurable under
present and future forms of “all-risk” insurance policies with a deductible not
in excess of $100,000.

          (C) business
interruption insurance which shall cover, among other things, the Rental which
shall be due and payable hereunder from Tenant in the event of a fire, casualty
or other interruption of Tenant’s business.

- 21 -

          (D) Steam
boiler, air conditioning or machinery insurance if there is a boiler or
pressure object, supplemental air conditioning or other HVAC units or similar
equipment, installed in each case by Tenant, in the Premises;

          (E) When
Alterations are in progress, the insurance specified in Article 3 hereof; and

          (F) Such
other amounts as Landlord, or any Mortgagee or Lessor, may reasonably require
from time to time and as required to be carried by tenants in similar buildings
in the borough of Manhattan.

          All of such
policies shall name Landlord and the other Indemnitees and any Mortgagees and
Lessors as additional insureds and shall contain provisions that no act or
omission of Tenant shall affect or limit the obligation of the insurance
company to pay the amount of any loss sustained and that the policies shall be
non-cancelable with respect to Landlord, Agent and such Lessors and Mortgagees,
as applicable, unless thirty (30) days prior written notice of cancellation
shall have been given to such parties by certified mail, return receipt
requested, which notice shall contain the policy number and the names of the
insured and additional insureds. All insurance required to be carried by Tenant
pursuant to the terms of this Lease shall be effected under valid and enforceable
policies issued by reputable and independent insurers permitted to do business
in the State of New York, and rated in Best’s Insurance Guide, or any successor
thereto (or if there be none, an organization having a national reputation
acceptable to Landlord) as having a general policyholder rating of “A” or
better and a financial size category of at least “ix”.

          Section 9.3 Tenant shall cooperate with Landlord and Landlord’s insurance
companies in the adjustment of any claims for any damage to the Building.

          Section 9.4 On or prior to the Commencement Date, Tenant shall deliver to Landlord
appropriate certificates of insurance, including evidence of waivers of
subrogation required pursuant to Section 9.5, required to be carried by Tenant
pursuant to this Article 9.
Evidence of each renewal or
replacement of a policy shall be delivered by Tenant to Landlord at least
thirty (30) days prior to the expiration of such policy.

          Section 9.5 Landlord and Tenant shall each procure an appropriate clause in or
endorsement to any property insurance covering the Premises, the Building and
personal property, fixtures and equipment located therein, wherein the
insurance companies shall waive subrogation or consent to a waiver of right of
recovery, and Landlord and Tenant agree not to make any claim against, or seek
to recover from the other for any loss or damage to its property or the
property of others resulting from fire and other hazards to the extent covered
by such property insurance; provided, however, that the release, discharge,
exoneration and covenant not to sue contained herein shall be limited by and
coextensive with the terms and provisions of the waiver of subrogation or
waiver of right of recovery. If the payment of an additional premium is
required for the inclusion, or consent to, a waiver of subrogation, each party
will advise the other, in writing, of the

- 22 -

amount
of any such additional premiums and the other party may pay such additional
premium. If such other party shall not elect to pay such additional premium,
then the first party shall not be required to obtain such waiver of subrogation
or consent to waiver. Tenant acknowledges that Landlord shall not carry
insurance on, and shall not be responsible for, (i) damage to any Alterations
(ii) Tenant’s Property, and (iii) any loss suffered by Tenant due to
interruption of Tenant’s business.

          Section 9.6 Landlord shall obtain and keep in full force and effect during the
Term at its sole cost and expense fire and other casualty insurance covering
the full replacement value of the Building (including the Basic Construction of
the Building). Upon written request by Tenant (but no more than once every two
(2) calendar years), Landlord shall provide to Tenant a copy of appropriate
certificates evidencing the foregoing.

ARTICLE 10

DESTRUCTION-FIRE OR OTHER CAUSE

          Section 10.1 If the portion of the Building in which the
Premises are located shall be damaged by fire or other casualty, Tenant shall
give immediate notice thereof to Landlord and this Lease shall continue in full
force and effect except as hereinafter specifically set forth. Provided this
Lease shall not then or thereafter be terminated in accordance with the
provisions of this Article 10, upon Tenant giving notice thereof to
Landlord, the damage to the Basic Construction of the Building shall diligently
be repaired by Landlord to a condition substantially comparable (subject to
changes Landlord shall deem reasonable and desirable) to the condition existing
prior to such damage (“Landlord’s Restoration Work”). Until
the Landlord’s Restoration Work shall be substantially completed (of which
substantial completion Landlord shall promptly notify Tenant), the Fixed Rent
and Escalation Rent shall be reduced in the proportion which the floor area of
the part of the Premises which is not usable by Tenant by reason of such damage
to the Basic Construction of the Building, as determined by Landlord in its
reasonable discretion, bears to the total floor area of the Premises; provided,
however, that should Tenant or anyone claiming through or under Tenant reoccupy
a portion of the Premises (for purposes of performing Tenant’s Restoration Work
or otherwise) as to which the abatement is in effect during the period Landlord’s
Restoration Work is being performed, Fixed Rent and Escalation Rent shall be
appropriately increased to reflect Tenant’s occupancy of such floor area.
Tenant shall repair any damage to, or replace and restore all Alterations and
Tenant’s Property to substantially the condition existing prior to the damage
(“Tenant’s
Restoration Work”) as soon as possible after the damage or
destruction. Such work by Tenant shall be deemed an Alteration for the purposes
of Article 3. The proceeds of insurance policies providing coverage for
Tenant’s Restoration Work shall be paid to Landlord, and if this Lease shall
not be terminated pursuant to Section 10.2, Landlord shall make such
proceeds available for restoration as set forth above in accordance with an
escrow arrangement reasonably satisfactory to Landlord and Tenant.

- 23 -

          Section 10.2 (A) Anything contained in Section 10.1 to
the contrary notwithstanding, if (i)(x) the Premises shall be totally or
substantially (i.e. for this purpose more than seventy-five (75%) percent of
insurable value) damaged or destroyed (as reasonably estimated in such case by
a reputable contractor registered architect or licensed engineer designated by
Landlord) or (y) if the Building shall be so damaged by fire or other casualty
that, in Landlord’s sole opinion, substantial alteration, demolition or
reconstruction of the Building shall be required (whether or not the Premises
shall have been damaged or rendered untenantable), and (ii) Landlord cancels
the leases of other tenants in the Building which demise, in the aggregate, at
least fifty (50%) percent of the entire rentable square footage of the space in
the Building (excluding the retail portion) that shall be leased at the time of
the casualty, then Landlord, at Landlord’s option, may, not later than ninety
(90) days following the damage, give Tenant a notice terminating this Lease. If
Landlord elects to terminate this Lease, the Term shall expire upon the date
specified in Landlord’s termination notice but not earlier than the thirtieth
(30th) day after such notice is given, and Tenant shall vacate the Premises and
surrender the same to Landlord. Upon the termination of this Lease under the
conditions provided for in this Section 10.2, Tenant’s liability for Fixed Rent
and Escalation Rent shall cease for amounts not then due and owing and any
prepaid portion of Fixed Rent and Escalation Rent for any period after the date
the Lease was so terminated shall be refunded by Landlord to Tenant.

          (B) If more
than seventy-five percent (75%) of the Premises are damaged or are rendered
untenantable, or if the Building shall be so damaged that Tenant is deprived of
reasonable access to the Premises, then if Landlord elects to restore the
Premises, Landlord shall, within ninety (90) days following the date of the
damage, cause a contractor or architect selected by Landlord to give notice
(the “Restoration
Notice”) to Tenant of the date by which such contractor or
architect estimates the restoration of the Premises (excluding any Alterations)
shall be substantially completed. If such date, as set forth in the Restoration
Notice, is more than twelve (12) months from the date of such damage, then
Tenant shall have the right to terminate this Lease by giving notice (the “Termination
Notice”) to Landlord not later than thirty (30) days following
Tenant’s receipt of the Restoration Notice. If Tenant delivers a termination
notice to Landlord, this Lease shall be deemed to have terminated as of the
date of the giving of the Termination Notice, in the manner set forth in the
last two sentences of Section 10.2(A).(C) Subject to Section 10.1,
if more than fifty (50%) percent of the Premises (including the Basic
Construction of the Building servicing the Premises and all Alterations) shall
be untenantable due to damage caused by fire or other casualty and based on the
estimated date for the substantial completion of the restoration of the
Premises (excluding any Alterations) as set forth in the Restoration Notice,
the unexpired Term after such estimated date shall be less than twelve (12)
months, then no later than thirty (30) days after the receipt of the
Restoration Notice by Tenant, either party may, upon sixty (60) days’ written
notice to the other, terminate this Lease as if such date were the Fixed
Expiration Date of this Lease, and if this Lease is so terminated, Landlord
shall have no obligation to repair or restore any portion of the Premises.

          (C) Subject
to Section 10.1, if more than fifty (50%) percent of the Premises (including
the Basic Construction of the Building servicing the Premises and all
Alterations) shall be untenantable due to damage caused by fire or other
casualty and based on the estimated date for the substantial completion of the
restoration of the Premises (excluding any Alterations) as set forth in the
Restoration Notice, the unexpired Term after such estimated date shall be less
than twelve (12) months, then no later than thirty (30) days after the receipt
of the Restoration Notice by Tenant, either party may, upon sixty (60) days’
written notice to the other, terminate this Lease as if such date were the
Fixed Expiration Date of this Lease, and if this Lease is so terminated,
Landlord shall have no obligation to repair or restore any portion of the Premises.

- 24 -

          Section 10.3 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. Further, nothing contained in this Article shall relieve Tenant from
any liability that may exist as a result of any damage or destruction by fire
or other casualty.

          Section 10.4 Landlord has no obligation to carry
insurance of any kind on any Alterations or Tenant’s Property and shall not be
obligated to repair any damage to or replace same, and Tenant agrees to look
solely to its insurance for recovery of any damage to or loss of Tenant’s
Property or Alterations except for any such damage or loss arising out of
Landlord’s gross negligence or willful misconduct which was uninsurable. If
Tenant shall fail to maintain any such insurance, Landlord shall have the right
(but not the obligation) to obtain such insurance and the cost thereof shall be
Additional Rent under this Lease and payable by Tenant to Landlord on demand.

          Section 10.5 If this Lease shall be terminated pursuant
to the provisions of this Article 10, Tenant shall pay to Landlord,
from the insurance proceeds received under Tenant’s insurance policies with
respect to the Alterations or, if Tenant fails to maintain the insurance
required to have been maintained hereunder with respect to the Alterations, the
insurance proceeds to which Landlord would have been entitled with respect to
the Alterations if Tenant had carried the insurance required hereunder, an
amount equal to the replacement value thereof (but not less than
$3,600,000.00). Tenant will cooperate with Landlord by removing from the
Premises all Tenant’s Property.

          Section 10.6 This Article 10 constitutes an
express agreement governing any case of damage or destruction of the Premises
or the Building by fire or other casualty, and Section 227 of the Real Property
Law of the State of New York, which provides for such contingency in the
absence of an express agreement, and any other law of like nature and purpose
now or hereafter in force shall have no application in any such case.

ARTICLE 11

EMINENT DOMAIN

          Section 11.1 If the whole or substantially all of the
Real Property or the Building 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, and the Fixed Rent and Escalation Rent shall be prorated and
adjusted as of such date.

          Section 11.2 (A) If any part of Real Property or Building
shall be so taken, this Lease shall be unaffected by such taking, except that
if the portion of Real Property or Building taken exceeds fifteen (15%) percent
of the rentable area thereof or if thirty percent (30%) or more of the rentable
area of the Premises shall be so taken and Landlord cancels leases of other
tenants in the Building which demise, in the aggregate, at least fifty (50%)
percent of the entire rentable square footage of the space in the Building
(excluding the retail portion) that shall be leased at the time of the
casualty,

- 25 -

Landlord
may, at its option, terminate this Lease by giving Tenant notice to that effect
within ninety (90) days after the date of the taking. This Lease shall
terminate on the date fixed in the notice but not less than thirty (30) days
after the date that such notice from Landlord to Tenant shall be given, and the
Fixed Rent and Escalation Rent shall be prorated and adjusted as of such
termination date. Upon such partial taking and this Lease continuing in force
as to any part of the Premises, the area of the Premises taken will be deleted
from the Premises and Fixed Rent and Escalation Rent shall be reduced in the
proportion that the area of the Premises taken bears to the total area of the Premises immediately prior to such taking.

          (B)
If the part of the
Building or the Real Property so acquired or condemned contains fifteen (15%)
percent or more of the total area of the Premises immediately prior to such
acquisition or condemnation, or if, by reason of such acquisition or
condemnation, Tenant no longer has reasonable means of access to the Premises,
Tenant may terminate this Lease by notice to Landlord given within sixty (60)
days following the date upon which Tenant received notice of such acquisition
or condemnation. If Tenant so notifies Landlord, this Lease shall terminate and
the Term shall end and expire upon the date set forth in the notice, which date
shall not be more than thirty (30) days following the giving of such notice.

          Section 11.3 Except as expressly provided in this Section
11.3, Landlord shall be entitled to receive the entire award or payment in
connection with any taking without reduction therefrom for any estate vested in
Tenant by this Lease or any value attributable to the unexpired portion of the
term of this Lease, and Tenant shall receive no part of such award except as
hereinafter expressly provided in this Article. Tenant hereby expressly assigns
to Landlord all of its right, title and interest in and to every such award or
payment and waives any right; to the value of the unexpired portion of the term
of this Lease. Nothing contained in this Section 11.3 shall be deemed to
prevent Tenant from making a separate claim in any condemnation proceeding for
the then value of Tenant’s Property which have been taken, and moving expenses
incurred as a result thereof, provided such claim does not reduce the amount of
the award payable to Landlord.

          Section 11.4 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, during the Term for the taking of Tenant’s Property,
for the repair of those items required to be repaired by Tenant pursuant to Section
11.5 hereof and for moving expenses, and Landlord shall be entitled to
receive that portion which represents reimbursement for the cost of restoration
of the Premises, excluding the cost of restoration of items to be restored by
Tenant pursuant to Section 11.5 hereof. Except as hereinafter set forth,
this Lease shall be and remain unaffected by any such taking and Tenant shall
continue 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, Escalation Rent and Additional Rent when due. All monies
payable to Tenant as, or as part of, an award for temporary use and

- 26 -

occupancy
for a period beyond the date to which the Fixed Rent, Escalation Rent and
Additional Rent have been paid shall be held and applied by Landlord as a trust
fund for payment of the Fixed Rent, Escalation Rent and Additional Rent becoming
due hereunder.

          Section 11.5 In the event of a taking 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 shall repair the remaining
parts of the Building (other than those parts of the Premises which are deemed
Alterations and Tenant’s Property) to a condition substantially comparable to
their former condition to the extent that Landlord deems the same to be
feasible (subject to changes which Landlord shall deem reasonable and
desirable) so as to constitute a complete and rentable Building 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 repair the remaining
parts of the Premises which are deemed Alterations and Tenant’s Property, to
substantially their former condition to the extent that the same may be
feasible.

ARTICLE 12

ASSIGNMENT, SUBLETTING, MORTGAGE, ETC.

          Section 12.1 (A) Except as expressly permitted by Sections
12.4 and Section 12.6, Tenant, without the prior consent of Landlord
in each instance, which consent may be withheld in Landlord’s sole discretion,
shall not (i) assign its rights or delegate its duties under this Lease
(whether by operation of law, transfers of interests in Tenant or otherwise) or
offer or advertise to do so, (ii) mortgage or encumber its interest in this
Lease, in whole or in part, (iii) sublet, or permit the subletting of, the
Premises or any part thereof or offer or advertise to do so, or (iv) permit the
Premises or any part thereof to be occupied, or used for desk space, mailing
privileges or otherwise, by any person other than Tenant (provided, however,
that Tenant may, upon prior written notice to Landlord, use portions of the
Premises for short term temporary desk space arrangements, for no consideration
of any kind whatsoever).

          (B) If this
Lease be assigned to any person or entity pursuant to the provisions of the
Bankruptcy Code, any and all moneys or other consideration payable or otherwise
to be delivered in connection with such assignment shall be paid or delivered
to Landlord, shall be and remain the exclusive property of Landlord and shall
not constitute the property of Tenant or of the estate of Tenant within the
meaning of the Bankruptcy Code. Any and all moneys or other considerations
constituting Landlord’s property under the preceding sentence not paid or
delivered to Landlord shall be held in trust for the benefit of Landlord and
shall be promptly paid to or turned over to Landlord.

          Section 12.2 If Tenant’s interest in this Lease is
assigned in violation of the provisions of this Article 12, such
assignment shall be void and of no force and effect against Landlord, provided,
however, that Landlord may collect an amount equal to the then Fixed Rent,
Escalation Rent plus any other item of Rental from the assignee as a fee

- 27 -

for
its use and occupancy. If the Premises or any part thereof are sublet to, or
occupied by, or used by, any person other than Tenant, whether or not in
violation of this Article 12, Landlord, after default by Tenant under
this Lease, may collect any item of Rental or other sums paid by the subtenant,
user or occupant as a fee for its use and occupancy, and shall apply the net
amount collected to the Fixed Rent and other items of Rental reserved in this
Lease. No such assignment, subletting, occupancy or use, whether with or
without Landlord’s prior consent, nor any such collection or application of
Rental or fee for use and occupancy, shall be deemed a waiver by Landlord of
any term, covenant or condition of this Lease or the acceptance by Landlord of
such assignee, subtenant, occupant or user as tenant hereunder. The consent by
Landlord to any assignment, subletting, occupancy or use shall not relieve
Tenant from its obligation to obtain the express prior consent of Landlord to
any further assignment, subletting, occupancy or use. Tenant shall pay to
Landlord Landlord’s reasonable costs (including, without limitation, the cost
of any investigation to determine the acceptability of a proposed assignee or
subtenant) and reasonable attorneys’ fees and disbursements incurred by
Landlord in connection with any proposed assignment of Tenant’s interest in
this Lease or any proposed subletting of the Premises or any part thereof. Any
person or entity to which this Lease is assigned pursuant to the provisions of
the Bankruptcy Code shall be deemed without further act or deed to have assumed
all of the obligations arising under this Lease on and after the date of such
assignment. Any such assignee shall execute and deliver to Landlord upon demand
an instrument satisfactory to Landlord in its sole discretion confirming such
assumption. Neither any assignment of Tenant’s interest in this Lease nor any
subletting, occupancy or use of the Premises or any part thereof by any person
other than Tenant, nor any collection or application of Rental by Landlord from
any person other than Tenant as provided in this Section 12.2 shall, in
any circumstances, relieve Tenant of its obligations under this Lease on
Tenant’s part to be observed and performed. Subsequent to any assignment,
Tenant’s liability hereunder shall continue notwithstanding any subsequent
modification or amendment hereof or the release of any subsequent tenant
hereunder from any liability, to all of which Tenant hereby consents in advance
except that no such modification or amendment insofar as it increases the
obligations of the then “Tenant” hereunder shall be binding on such prior
Tenant; it being agreed that in all events Tenant’s liability hereunder shall
be joint and several, primary and direct with that of any assignee of Tenant or
such assignee’s successors and permitted assigns. Tenant shall remain fully
responsible and liable for the acts and omissions of any subtenant, assignee or
anyone claiming by or through any subtenant or assignee which shall be in
violation of any of the obligations under this Lease.

          Section 12.3 If Tenant assumes this Lease and
proposes to assign the same pursuant to the provisions of the Bankruptcy Code
to any person or entity who shall have made a bona fide offer to accept an
assignment of this Lease on terms acceptable to Tenant, then notice of such
proposed assignment shall be given to Landlord by Tenant no later than twenty
(20) days after receipt by Tenant of such offer, but in any event no later than
ten (10) days prior to the date that Tenant shall make application to a court
of competent jurisdiction for authority and approval to enter into such
assignment and assumption. Such notice shall set forth (i) the name and address
of such person or entity, (ii) all of
the terms and conditions of such offer, and (iii) the proposed adequate
assurance

- 28 -

of
future performance by such person under this Lease, including, without
limitation, the assurance referred to in Section 365(b)(3) of the Bankruptcy
Code. Landlord shall have the prior right and option, to be exercised by notice
to Tenant 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 or entity, less any brokerage commissions which would otherwise
be payable by Tenant out of the consideration to be paid by such person in
connection with the assignment of this Lease.

          Section
12.4 (A) Either a transfer
(including the issuance of treasury stock or the creation and issuance of new
stock) of fifty (50%) percent or more of the shares of Tenant (if Tenant is a
corporation or trust) or a transfer or issuance of fifty (50%) or more of the
total interest in Tenant (if Tenant is a partnership, limited liability company
or other entity) at any one time or over a period of time through a series of
transfers, directly or indirectly (including, without limitation, and by way of
example only, the transfer of fifty (50%) or more of the outstanding capital
stock of a company which company owns 100% of a second tier company, which in
turn owns fifty (50%) or more of the capital stock of the corporate Tenant
hereunder) shall be deemed an assignment of this Lease and shall be subject to
all of the provisions of this Article 12, including, without limitation,
the requirement that Tenant obtain Landlord’s prior consent thereto. The
transfer of shares of Tenant (if Tenant is a corporation or trust) for purposes
of this Section 12.4 shall not include the sale of shares by persons
other than those deemed “insiders” within the meaning of the Securities
Exchange Act of 1934, as amended, if such sale is effected through the
“over-the-counter market” or through any recognized stock exchange (including,
without limitation, in connection with a public offering).

Notwithstanding the foregoing, Tenant shall have the privilege, subject
to the terms and conditions hereinafter set forth, without the consent of
Landlord:

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 (a)

 	
 to
 assign Tenant’s interest in this Lease or to sublet all or any part of the
 Premises to a corporation or other entity which shall (and only for so long
 as such entity continues to) control, be under the control of, or be under
 common control with the initial Tenant hereunder (the term “control” and “controlling” as used herein shall be
 deemed to mean ownership or control of more than thirty (30%) percent of the
 outstanding voting stock of a corporation, or an equivalent majority and
 control interest in an entity if such entity is not a corporation and, for
 the purposes of this Section 12.4(A)(i)(a), the power to direct or
 cause the direction of management and policy of such entity) (any such entity
 being a “Related Entity”);
 and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 to transfer (including the issuance of treasury
 stock or the creation and issuance of new stock) less than fifty (50%)
 percent of the shares of Tenant (if Tenant is a corporation or trust) or to
 transfer or issue less than fifty (50%) percent of the total interest in
 Tenant (if Tenant is a partnership, limited liability company or other entity);
 provided, however, that the transactions under these subparagraphs (i)(a)
 and (b) may only

 

- 29 -

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 be made on the condition that, with respect to an assignment or
 sublease to a Related Entity, the principal purpose of such assignment or
 sublease is not the acquisition of Tenant’s interest in this Lease and is
 made for a valid, bona fide and legitimate business purpose and is not made
 to circumvent the provisions of Section 12.1 or this Section
 12.4(A); and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 (a)

 	
 to
 assign Tenant’s interest in this Lease (by operation of law or otherwise) or
 sublet all or any part of the Premises to any corporation which is a
 successor to Tenant either by merger or consolidation; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 to assign Tenant’s interest in this Lease (by
 operation of law or otherwise) or sublet all or any part of the Premises to
 any purchaser of all or substantially all of the assets or substantially all
 of the voting stock and equity interests in Tenant provided that the value of
 the leasehold created thereby does not constitute more than twenty (20%)
 percent of the total sales price for such assets (such value of the leasehold
 to be deemed to be the value allocated to such leasehold under the applicable
 sales contract); and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 to transfer (including the issuance of treasury
 stock or the creation or issuance of new stock) fifty (50%) percent or more
 of the shares of Tenant (if Tenant is a corporation or trust) or to transfer
 or issue fifty (50%) or more of the total interest in Tenant (if Tenant is a
 partnership, limited liability company or other entity); provided, however,
 that the transactions under these subparagraphs (ii)(a), (b) and (c)may only be made
 upon the condition that (x) the principal purpose of such assignment or
 sublease is not the acquisition of Tenant’s interest in this Lease and is
 made for a valid, bona fide and legitimate business purpose and not to
 circumvent the provisions of Section 12.1 or this Section 12.4(A)
 and (y) any such assignee or sublessee, with respect to subparagraphs
 (ii)(a) and (b) above, and Tenant, with respect to this subparagraph
 (ii)(c), shall have met the Financial Requirements.

 

          Tenant
shall, within ten (10) Business Days after execution thereof, deliver to
Landlord (a) in the case of an assignment, a duplicate original instrument of
assignment and assumption in form and substance reasonably satisfactory to
Landlord in all respects, duly executed by Tenant and such assignee, in which
such assignee shall assume observance and performance of, and agree to be personally
bound by, all of the terms, covenants and conditions of this Lease on Tenant’s
part to be observed and performed or (b) in the case of a sublease, a duplicate
original sublease in form and substance reasonably satisfactory to Landlord in
all respects, duly executed by Tenant and the subtenant.

          (B)
Intentionally Omitted.

- 30 -

          (C)
A so-called “take-over” agreement (i.e., an agreement where another entity
agrees to become responsible for all or a portion of Tenant’s obligations under
this Lease without actually entering into an assignment or sublease) shall be
deemed an assignment of this Lease and shall be subject to all of the
provisions of this Article 12, including, without limitation, the
requirement that Tenant obtain Landlord’s prior consent thereto in each
instance.

          (D)
Any modification, amendment, or extension of a sublease previously consented to
by Landlord shall be deemed a new sublease subject to all of the terms and
conditions of this Article 12, except to the extent such modification,
amendment or extension was contemplated or required by the original sublease.

          (E)
With respect to any assignment of this Lease (or any sublease of all of the
Premises) pursuant to Section 12.4(A), to the extent any condition that
the assignee or sublessee be under the control of the initial Tenant hereunder
is no longer satisfied, such assignment or sublease shall automatically and
without further action by any party be deemed a new assignment or sublease, as
applicable, subject to all of the terms and conditions of this Article 12.

          Section
12.5 If, at any time after Tenant
shall have assigned Tenant’s interest in this Lease, this Lease shall be
disaffirmed or rejected in any proceeding of the types described in Section
16.1 (E), or in any similar proceeding, or in the event of termination of
this Lease by reason of any such proceeding or by reason of lapse of time
following notice of termination given pursuant to said Article 16 based
upon any of the Events of Default set forth in such Section 16.1(E),
Tenant, upon notice from Landlord given within thirty (30) days next following
any such disaffirmance, rejection or termination (and actual notice thereof to
Landlord in the event of a disaffirmance or rejection or in the event of
termination other than by act of Landlord), shall (i) pay to Landlord all Fixed
Rent, Escalation Rent and other items of Rental due and owing by the assignee
to Landlord under this Lease to and including the date of such disaffirmance,
rejection or termination and (ii) as “tenant” enter into a new lease with
Landlord for the Premises for a term commencing on the effective date of such
disaffirmance, rejection or termination and ending on the Expiration Date,
unless sooner terminated as in such lease provided, at the same Fixed Rent and
upon the then executory terms, covenants and conditions as are contained in
this Lease, except that (x) Tenant’s rights under the new lease shall be
subject to the possessory rights of the assignee under this Lease and the
possessory rights of any person claiming through or under such assignee or by
virtue of any statute or of any order of any court, (y) such new lease shall
require all defaults existing under this Lease to be cured by Tenant with due
diligence, and (z) such new lease shall require Tenant to pay all Escalation
Rent reserved in this Lease which, had this Lease not been so disaffirmed,
rejected or terminated, would have accrued under the provisions of this Lease
after the date of such disaffirmance, rejection or termination with respect to
any period prior thereto. If Tenant shall default in its obligation to enter
into said new lease for a period of ten (10) days after Landlord’s request
therefor, then, in addition to all other rights and remedies by reason of such
default, either at law or in equity, Landlord shall have the same rights and
remedies against Tenant as if Tenant had entered into such

- 31 -

new
lease and such new lease had thereafter been terminated as of the commencement
date thereof by reason of Tenant’s default thereunder.

          Section
12.6 (A) Notwithstanding the
provisions of Section 12.1, Landlord shall not unreasonably withhold or
delay its consent to any assignment or subletting of the whole (or part,
subject to the limitations hereinafter set forth) of the Premises provided
that:

                              (i)
Tenant shall have delivered to Landlord a Transfer Statement pursuant to Section
12.6(B) and Landlord shall not have elected to exercise any of its options
pursuant to Section 12.8 within the times permitted therefor (a) to
sublet the Premises or any part thereof, (b) to terminate (in whole or in part)
this Lease, or (c) to have this Lease assigned to it or its designee;

                              (ii)
with respect to a sublease, the Premises shall not, without Landlord’s prior
written consent (which consent may be withheld by Landlord in its sole
discretion), have been listed or otherwise publicly advertised for subletting
at a rental rate less than the prevailing rental rate set by Landlord for space
in the Building;

                              (iii)
no Event of Default shall have occurred and be continuing;

                              (iv)
in Landlord’s reasonable judgment, the proposed assignee or subtenant shall be
a reputable entity of good character and otherwise shall have a financial
standing (taking into consideration the obligations of the proposed subtenant
or assignee under the proposed sublease or assignment), be of a character, be
engaged in a business, and propose to use the Premises in a manner in keeping
with the permitted uses and the standards in such respects of a first-class,
office building in the Borough of Manhattan;

                              (v)
neither the proposed assignee or subtenant nor any Affiliate of any proposed
assignee or subtenant shall be a person or entity with whom Landlord is then
negotiating, or has, in the past six (6) months, negotiated with, to lease
space in the Building, except to the extent there is no Comparable Space
available in the Building for leasing from Landlord;

                              (vi)
the proposed assignee or subtenant shall not then be a tenant or other occupant
of the Building or a Person which directly or indirectly controls, is controlled
by or is under common control (as defined in Section 12.4) with a tenant
or other occupant of the Building, except to the extent there is no Comparable
Space available in the Building for leasing from Landlord;

                              (vii)
in Landlord’s reasonable judgment, the character of the business to be
conducted or the proposed use of the Premises by the proposed assignee or
subtenant (a) shall not be likely to increase Landlord’s operating expenses for
the Building beyond that which would be incurred for use by Tenant or for use
in accordance with the standards of use of other tenancies then being sought
for the Building by Landlord; (b) shall not increase the burden on existing
cleaning services or elevators over the burden

- 32 -

prior
to such proposed assignment or subletting; and (c) shall be consistent with the
standards of first-class, office buildings in the Borough of Manhattan;

                              (viii)
any subletting shall end no later than one (1) day before the Expiration Date
(as extended by any renewal option theretofore exercised by Tenant);

                              (ix)
any subletting must result in there being no more than four (4) occupants
(including Tenant) occupying the Premises and no more than four (4) such
occupants per floor;

                              (x)
the subletting or assignment must comply with all Requirements of Law and any
space subleased, any space previously subleased, and the space, if any,
retained by Tenant must be commercially reasonable in size and configuration as
separate rental units and suitable for normal renting purposes; and

                              (xi)
Tenant shall reimburse Landlord on demand by notice from Landlord for any and
all reasonable costs that may be incurred by Landlord in connection with said
assignment or sublease referenced in Section 12.2.

          (B)
At least thirty (30) days prior to any proposed assignment or subletting,
Tenant shall submit a statement to Landlord (a “Transfer
Statement”) containing
the following information: (i) the name and address of the proposed bona fide
third-party assignee or subtenant, (ii) the proposed commencement date of the
assignment or sublease, (iii) all of the material terms and conditions of the
proposed assignment or subletting including the rent payable, and the use to
which it proposes to use the Premises to be assigned or sublet (iv) the nature
and character of the business of the proposed assignee or subtenant, (v) the
reasonable financial information required for Landlord to make its
determination as to the financial standing of such assignee or subtenant
(including, without limitation, the most recent financial report of such
proposed assignee or subtenant), (vi) Tenant’s calculation of Fixture Costs with
reasonably sufficient back-up documentation and any other commercially
reasonable information concerning the proposed assignment or subletting that
Landlord may request and (vii) a bona fide term sheet (the “Term
Sheet”) reflecting the
information in (i) through (iv) above, signed by Tenant and the proposed
assignee or subtenant. Within the ten (10) Business Day period after Landlord
receives the Transfer Statement and the requisite information required under
this Section 12.6(B), Landlord shall by notice to Tenant (the “Election
Notice”) (1) elect
whether to exercise any of its options pursuant to Section 12.8 or (2)
to grant or deny its consent to such assignment or subletting subject to and in
accordance with Section 12.6(A). If Landlord grants its consent to an
assignment or subletting, Tenant shall be permitted to enter into same at any
time within one hundred eighty (180) days after the submission of the Transfer
Statement, provided such assignment or subletting conforms to the Transfer
Statement and otherwise satisfies the requirements of this Section 12.6
and a copy of the fully-executed assignment or sublease agreement is delivered
to Landlord prior to its effectiveness and no later than ten (10) days after
execution. If an assignment or sublease satisfying the foregoing conditions is
not entered into within said one hundred eighty (180) day period, then

- 33 -

Tenant
shall be required to again submit a Transfer Statement and comply with this Section
12.6 with respect to any proposed assignment or subletting.

          (C)
To the extent Landlord’s consent is required for any assignment or subletting
pursuant to this Article 12, the consent of any Mortgagee and Lessor
shall also be required, and such consent shall be granted or denied on the same
terms and conditions as Landlord’s consent shall be granted or denied
hereunder.

          (D)
Notwithstanding anything to the contrary contained in this Lease, no assignment
of Tenant’s interest in this Lease shall be binding upon Landlord unless the
assignee, and, if assignee is a partnership, the individual general partners
thereof, shall execute and deliver to Landlord an agreement, in recordable
form, whereby such assignee (and such general partners, if applicable) agrees
unconditionally to be personally bound by and to perform all of the obligations
of Tenant hereunder and further expressly agrees that notwithstanding such
assignment the provisions of this Article shall continue to be binding upon
such assignee with respect to all future assignments and transfers.

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

                              (i)
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 dispossess by Landlord under this Lease
Landlord may, at its option, take over all of the right, title and interest of
Tenant, as sublessor, under such sublease, and such subtenant shall, at
Landlord’s option, attorn to Landlord pursuant to the then executory provisions
of such sublease, except that Landlord shall not be (i) liable for any previous
act or omission of Tenant under such sublease, (ii) subject to any credit,
offset, claim, counterclaim, demand or defense, (iii) bound by any previous
modification, amendment, cancellation or surrender of such sublease or by any
previous prepayment of more than one (1) months’ rent, (iv) bound by any
covenant of Tenant to undertake or complete any construction of the Premises or
any portion thereof, (v) required to account for any security deposit of the
subtenant other than any security deposit actually delivered to Landlord by
Tenant or (vi) required to remove any person occupying the Premises or any part
thereof.

                              (ii)
Each sublease (other than a sublease to a Substantial Subtenant who may assign
its right or further sublet subject to and in strict accordance with the terms
and conditions of this Lease) shall provide that the subtenant (including
without limitation any sub-subtenant of a Substantial Subtenant) may not assign
its rights thereunder or further sublet the space demised under the sublease,
in whole or in part, without Landlord’s consent.

                              (iii)
Each sublease shall provide that (a) the subtenant will not pay any rent or
other sums under said sublease for more than one (1) month in advance of the
date due for any corresponding rental obligation under this Lease; (b) such
subtenant shall

- 34 -

deliver
to Landlord its drawings and specifications with respect to any construction,
alteration, renovation and/or restoration work with respect to the space
demised under subtenant’s sublease, and, upon completion thereof, “as-built”
drawings for such work.

          (F)
With respect to each Major Subletting, Landlord shall, upon written request
from Tenant, provide to the Major Subtenant a subordination, non-disturbance
and attornment agreement from Landlord on a form reasonably satisfactory to
Landlord, Tenant and the Major Subtenant.

          (G)
If Landlord shall elect any of the options referred to in clauses (i), (ii) or
(iii) of Section 12.8, and provided no Event of Default has occurred and
is continuing, Landlord shall pay to Tenant an amount equal to fifty percent
(50%) of the amount (the “Excess Net Sums”) equal to (x) rentals and other consideration payable under any
proposed sublease referenced in the Term Sheet in excess of the Rentals under
this Lease and (y) consideration payable under any proposed assignment
referenced in the Term Sheet (each a “Term Sheet Transaction”), after the
deduction of Tenant’s Fixture Costs (not to exceed Three ($3.00) Dollars per
rentable square foot (rsf) on an annual basis) and Landlord’s Costs as provided
under this Section 12.6(G) which shall in each case be paid to Landlord
and Tenant respectively. Whether or not a Term Sheet Transaction is actually
consummated by Landlord, Excess Net Sums shall be calculated on the basis of
the excess rentals and other consideration that would have arisen if the Term
Sheet Transaction was executed on the terms set forth in the Term Sheet. If
Landlord shall enter into an assignment, sublease or other occupancy agreement
with the same or a different assignee or subtenant, for greater actual profits,
Tenant shall not be entitled to any amount in excess of its 50% share of the
Excess Net Sums of the Term Sheet Transaction as set forth in the Term Sheet.
If Landlord shall enter into an assignment, sublease or other occupancy
agreement with the same or a different assignee or subtenant for lesser or no
actual profits, Tenant shall be entitled to an amount equal to its 50% share of
the Excess Net Sums of the Term Sheet Transaction as set forth in the Term
Sheet. By way of example, but not intending to be exhaustive, if the Rental
under the Lease is $35 per rsf, the Term Sheet provides for a sublease at $50
per rsf, Tenant’s Fixture Costs exceed but are capped at $3 per rsf and
Landlord’s Costs equal $2 per rsf, then:

	
  

 	
  

 
	
  

 	
           (1)
 If Landlord recaptures the applicable space under Section 12.8 and
 then rents such space at $50 per rsf, the excess of the $50 per rsf sublease
 rental over the $35 per rsf Rental under the Lease equal to $15 per rsf shall
 be paid as follows: (a) Tenant shall be reimbursed its Tenant’s Fixture Costs
 not to exceed $3 per rsf, (b) Landlord shall be reimbursed its Landlord’s
 Costs of $2 per rsf and (c) the Excess Net Sums of $10 per rsf shall be paid
 $5 per rsf to Landlord and $5 per rsf to Tenant;

 
	
  

 	
  

 
	
  

 	
           (2)
 If Landlord recaptures the applicable space under Section 12.8 and
 then rents such space at $60 per rsf, the excess of the $60 per rsf sublease
 rental over the $35 per rsf Rental under the Lease equal to $25 per rsf shall
 be paid as follows: (a) Tenant shall be reimbursed its Tenant’s Fixture Costs
 not to exceed $3 per rsf, (b) Landlord shall be reimbursed its Landlord’s
 Costs of $2 per rsf, (c) the Excess Net Sums

 

of
$10 per rsf shall be paid $5 per rsf to Landlord and $5 per rsf to Tenant and
(d) Landlord shall be entitled to the full profit in excess of $50 per rsf
equal to $10 per rsf;

- 35 -

	
  

 	
  

 
	
  

 	
           (3)
 If Landlord recaptures the applicable space under Section 12.8 and then
 rents such space at $48 per rsf, the excess of the $48 per rsf sublease
 rental over the $35 per rsf Rental under the Lease equal to $13 per rsf shall
 be paid as follows: (x) Tenant shall be reimbursed its Tenant’s Fixture Costs
 not to exceed $3 per rsf, (y) Landlord shall be reimbursed its Landlord’s
 Costs of $2 per rsf and (z) the balance of $8 per rsf shall be paid $5 per
 rsf to Tenant and $3 per rsf to Landlord; and

 
	
  

 	
  

 
	
  

 	
           (4)
 If Landlord recaptures the applicable space under Section 12.8 and
 then rents such space at $44 per rsf, the excess of the $44 per rsf sublease
 rental over the $35 per rsf Rental under the Lease equal to $9 per rsf shall
 be paid as follows: (u) Tenant shall be reimbursed its Tenant’s Fixture Costs
 not to exceed $3 per rsf, (v) Landlord shall be reimbursed its Landlord’s
 Costs of $2 per rsf and (w) the balance of $4 per rsf shall be paid to Tenant
 and Landlord shall contribute $1 per rsf to Tenant.

 

Notwithstanding
anything herein to the contrary, the sums payable under this Section 12.6(G)
shall only be payable to Tenant thirty (30) days after such rentals or
consideration, if any, are actually paid to and received by Landlord. In lieu
of payment thereof to Tenant, Landlord may at its option credit the amount of
such payments as and when due against the Fixed Rent then payable by Tenant
hereunder. If any sublease or assignment by Landlord includes other space in
the Building, or has a term that extends beyond the Expiration Date, then only
the excess rentals and excess consideration properly allocable to the
recaptured portion of the Premises for the remainder of the initial Term (and
only the Tenant’s Fixture Costs and Landlord’s Costs properly allocable to such
recaptured space for the remainder of the initial Term) shall be included in
the applicable calculation.

          Section
12.7 (A) For purposes of this Section
12.7,

                    (1)
The term “Assignment
Profit” shall mean the amount by which (x) 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 fair market value thereof, determined at Tenant’s sole expense on the basis
of evidence reasonably satisfactory to Landlord, which net fair market value
shall be deducted from the sum paid in connection with such sale in equal
monthly installments over the period of time over which such additional sums
are to be paid) exceeds (y) (i) the commercially reasonable costs actually
incurred by Tenant in effectuating such assignment for legal fees, marketing
expenses, advertising expenses, free rent and other monetary inducements, new
or additional improvements to prepare the space for occupancy (and any work
allowance given in lieu of or in addition to performance of any improvements)
and brokerage costs deducted as and when such sums are paid, all based upon
bills, receipts or other evidence of such costs reasonably satisfactory to
Landlord plus (ii) the balance of the Tenant’s Fixture Costs, to the extent

- 36 -

fixtures
and leasehold improvements are actually made available to the applicable
assignee, but in no event shall such balance of the Tenant’s Fixture Costs
exceed Three ($3.00) Dollars per rentable square foot on an annual basis.

                    (2)
The term “Sublease
Profit” shall mean in any year of the Term the
amount by which (x) the sum of (A) any rents, additional rent or other
consideration payable under the sublease to Tenant by the subtenant which is in
excess of the Fixed Rent, Escalations and Additional Rent accruing during such
year of the Term in respect of the subleased space (at the rate per square foot
payable by Tenant hereunder) pursuant to the terms hereof and (B) 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
fair market value thereof, determined at Tenant’s sole expense on the basis of
evidence reasonably satisfactory to Landlord, which net fair market value shall
be deducted from the sum paid in connection with such sale in equal monthly
installments over the period of time over which such additional sums are to be
paid, exceeds (y) (i) the commercially reasonable costs actually incurred by
Tenant in effecting such sublease for legal fees, marketing expenses,
advertising expenses, free rent and other monetary inducements, new or
additional improvements to prepare the space for occupancy (and any work
allowance given in lieu of or in addition to performance of any improvements)
work required to prepare the space for occupancy and brokerage costs all based
upon bills, receipts or other evidence of such costs reasonably satisfactory to
Landlord in all respects, with any such expenses being deducted from the
amounts referred to in clause (x) above in equal monthly installments over the
balance of the term of the sublease plus (ii) Tenant’s Fixture Costs allocated
to the space subleased, to the extent fixtures and leasehold improvements are
actually included under the applicable sublease, deducted from the amounts
referred to in clause (x) above in equal monthly installments over the term of
the sublease, but in no event shall such Tenant’s Fixture Costs exceed Three
($3.00) Dollars per rentable square foot of the subleased space on an annual
basis.

          (B)
If Landlord shall give its consent to any assignment of this Lease or to any
sublease, Tenant shall pay fifty (50%) percent of the Assignment Profit or
Sublease Profit, as the case may be, to Landlord. The sums payable under this Section 12.7
shall be paid to Landlord as Additional Rent as and when the assignee or
subtenant pays the consideration and/or rent to Tenant that gives rise to
Assignment Profit or Sublease Profit, as the case may be. Notwithstanding the
foregoing, Tenant shall not be obligated to pay to Landlord any of the
Assignment Profit or Sublease Profit, as the case may be, in connection with
any assignments or sublettings to Related Entities under Section
12.4(A)(i)(a).

          Section
12.8 Notwithstanding anything herein to the contrary,
except for any assignment or subletting which does not require Landlord’s
consent pursuant to Section 12.4 hereof, Tenant’s
delivery of the Transfer Statement shall be deemed an offer from Tenant to
Landlord whereby Landlord (or Landlord’s designee) may, at its option, (i)
sublease such 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), (ii) have this Lease

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assigned
to it or terminate this Lease (if the proposed transaction is an assignment or
a sublease of all or substantially all of the Premises for all or substantially
all of the balance of the Term, 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 for all or substantially all of the balance
of the Term) or (iii)terminate this Lease with respect to the space covered by
the proposed sublease (if the proposed transaction is a sublease of part of the
Premises for all or substantially all of the balance of the Term). A sublease
shall be deemed to be for all or substantially all of the balance of the Term
hereof, if the expiration date thereof falls during the last year of the Term
hereof. Said options may be exercised by Landlord by notice to Tenant at any
time within the thirty (30) day period after Landlord receives the Transfer
Statement and all such other documentation and information required or
requested by Landlord as specified in Section 12.6(8).

          Section
12.9 (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 for all or
substantially all of the balance of the Term, then, this Lease shall end and
expire on the date (the “Early Termination Date”) that such assignment or
sublease was to be effective or commence as the case may be (but no earlier
than thirty (30) days) from the date of the Election Notice and the Fixed Rent,
Escalation Rent and Additional Rent shall be paid and apportioned as of the
Early Termination Date, and Tenant shall deliver vacant possession of the
Premises to Landlord in the condition required by this Lease on the Early
Termination Date. 

          (B)
If Landlord exercises its option to have this Lease assigned to Landlord (or
Landlord’s designee) in the case where Tenant desires either to assign this
Lease or sublet all or substantially all of the Premises for all or
substantially all of the balance of the Term, then Tenant shall assign this
Lease to Landlord (or Landlord’s designee) by an assignment in form and
substance reasonably satisfactory to Landlord, and if Landlord’s designee is
the assignee, Landlord shall be deemed hereby to release Tenant from its Rental
and other obligations hereunder. 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 (but no earlier than thirty (30) days from
the date of the Election Notice. 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 all such consideration
and/or grant all such concessions to Landlord (or Landlord’s designee) at the
time and in the manner set forth in the proposed assignment or sublease.

          (C)
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 for all or substantially all of the balance of the
Term, then (i) this Lease shall end and expire with respect to such part of the
Premises on the date set forth in Landlord’s Election Notice, which date shall
be the date that the proposed sublease was to commence (but no earlier than
thirty (30) days from the date of the Election Notice); (ii) from and after
such date, the Fixed Rent and Escalation Rent (including without limitation
Tenant’s Tax Share and Tenant’s Operating Share) shall be adjusted,

- 38 -

based
upon the proportion that the rentable area of the Premises remaining bears to
the total rentable area of the Premises; and (iii) Tenant shall pay to
Landlord, upon demand, as Additional Rent hereunder the reasonable costs
incurred by Landlord in physically separating such part of the Premises from
the balance of the Premises and in complying with Requirements of Law relating
to such separation to the extent Tenant agreed to pay such costs pursuant to
the Transfer Statement.

          (D)
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 rentals set forth in the proposed
sublease and shall be for the same term as that of the proposed subletting,
and: 

                              (i)
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;

                              (ii)
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;

                              (iii)
Such sublease shall give the sublessee the unqualified and unrestricted right,
without Tenant’s permission, 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.

                              (iv)
Such sublease shall provide that any assignee or future subtenant of Landlord
or its designee, may, at the election of Landlord or such designee, be
permitted to make changes, alterations and improvements in such space or any
part thereof provided that (a) with respect to subleases with terms of less
than five (5) years, any such changes, alterations and improvements in such
space therein made by any subtenant of Landlord or its designee must be removed
by such subtenant prior to or upon the expiration or other termination of such
sublease and such subtenant must restore the Premises substantially to its
prior condition, reasonable wear and tear and damage by casualty excepted,
provided that such removal had been contemplated under the Transfer Statement
and such expiration or termination occurs prior to two (2) years before the
Fixed Expiration Date (or two (2) years before the expiration date of the
Extension Term if Tenant has properly exercised the Extension Option as
provided under Article 42) and (b) with respect to subleases with
terms of five (5) years or more, any such changes, alterations and improvements
made by any subtenant of Landlord or its designee need not be removed by such
subtenant prior to or upon the expiration or earlier termination of such
sublease;

                              (v)
Such sublease shall also provide that (a) 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, (b) any assignment
or subletting by Landlord or its designee (as the subtenant) may be for any
purpose or purposes that Landlord, in Landlord’s sole discretion, shall deem
suitable or appropriate, provided that

- 39 -

such
purpose is permitted by the certificate of occupancy for the Building and
further provided such purpose will not unreasonably interfere with the use of
the remaining portion of the Premises if such sublease covers only a portion
thereof, (c) 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, (d) Landlord, at
Tenant’s expense, may make such alterations as may be required or deemed
necessary by Landlord to physically separate the subleased space from the
balance of the Premises, and to comply with any Requirements of Law relating to
such separation, and (e) 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 to make such repairs thereto
as may be necessary to preserve the premises demised by such sublease in good
order and condition; and

                              (vi)
If Landlord or its designee is the subtenant, either (x) Landlord shall be
deemed hereby to release Tenant from such portion of its rental obligations
hereunder which are payable by Landlord’s designee pursuant to such sublease or
(y) Tenant shall be entitled to offset the rental and other obligations payable
under such sublease against its Rental obligations hereunder; and Tenant shall
not be liable under this Lease for breaches of the terms and conditions of this
Lease covered by the actions, failures to act or omissions of Landlord or its
designee under such sublease.

          Section
12.10 If Landlord shall withhold
its consent to any proposed sublease, or if Landlord shall exercise any of its
options under Section 12.8, (a) Tenant shall indemnify and hold Landlord
harmless from and against any and all claims for commission, fee, reimbursement
for expenses or other compensation by any Person who shall claim to have dealt
with Tenant or any proposed assignee or sublessee in connection with a proposed
assignment or sublease of the Premises and for any and all costs incurred by
Landlord in connection with such claims, including, without limitation,
reasonable attorneys’ fees and disbursements and (b) Landlord shall indemnify
and hold Tenant harmless from and against any and all claims for commission,
fee, reimbursement for expenses or other compensation by any Person who shall
claim to have dealt with Landlord in connection with a proposed assignment or
sublease of the Premises and for any and all costs incurred by Tenant in
connection with such claims, including, without limitation, reasonable
attorneys’ fees and disbursements.

          Section
12.11 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.

ARTICLE 13

ELECTRICITY

          Section
13.1 (A) Landlord shall make
available to Tenant within the Premises, up to six (6) watts of electricity per
rentable square foot of space in the Premises, demand

- 40 -

load,
excluding electricity required in connection with the base Building HVAC
systems. Tenant shall have the option to obtain an additional two (2) watts of
electricity per rentable square foot of space in the Premises, demand load, to
be exercised by delivery of written notice to Landlord on or before December
31, 2000, time being of the essence. Landlord shall make such additional
electricity available to Tenant, provided, that, subject to the requirements of
Article 3 (other than the approval requirement under Section 3.1 (A)
and Section 3.1 (B), and at Tenant’s sole cost and expense, Tenant shall
perform all work necessary to obtain such additional electricity
(a) through connection to an existing riser designated by Landlord in
Stairwell A and/or (b) with respect to the fifth floor, by also modifying the
existing 480 volt service in the Building’s basement electric room. All electrical
energy used by Tenant at or with respect to the Premises (“Tenant’s Electricity”) shall be
provided on a submetered basis. The amounts to be paid for Tenant’s Electricity
shall be measured on one or more electric submeters measuring both demand and consumption,
which submeters shall be installed and maintained by Landlord. Where more than
one submeter measures Tenant’s Electricity, the service rendered through each
submeter shall be computed and billed separately in accordance with the
provisions hereof. Bills for Tenant’s Electricity shall be rendered to Tenant
and shall be payable as Additional Rent.

          (B)
Subject to the provisions set forth below in this Section 13.1 (B), the
amount to be charged to Tenant by Landlord for any billing period for Tenant’s
Electricity shall be the sum of One Hundred Five (105%) percent of the amount
indicated by applying both the number of Kilowatts of demand for such period
and the Kilowatt hours of consumption for such period to Landlord’s Rate
Schedule for such period. In addition, Tenant shall pay, and Landlord shall
remit to the appropriate Governmental Authorities, all sales taxes, utility
taxes and other charges payable on the amounts set forth hereinabove.

          Section
13.2 (A) Subject to Section 13.1(A), Tenant
covenants and agrees that at all times its use of electricity will not exceed
the capacity of existing feeders to the Premises or the risers or wiring
installations therein and Tenant shall not use any electrical equipment which,
in Landlord’s reasonable judgment, will overload such installation or interfere
with the use thereof by other tenants in the Building. In the event that, in
Landlord’s sole judgment, Tenant’s electrical requirements necessitate
installation of an additional riser, risers or other proper necessary equipment
or services, including ventilation or air conditioning, the same shall if
Landlord deems practicable (taking into consideration the needs of other
tenants and of other space in the Building) be provided or installed by
Landlord at Tenant’s sole expense, which shall be chargeable and collectible as
Additional Rent. Rigid or EMT conduits only will be allowed. Tenant shall at
all times comply with the rules, regulations, terms and conditions applicable
to service, equipment, and wiring requirements of the public utility supplying
electricity to the Building. Tenant shall have the right to use any electrical
equipment if Landlord’s engineer reasonably determines that such equipment will
not exceed the capacity of existing feeders.

          (B)
Landlord shall not be liable for any loss, damage or expense or in any other
way to Tenant for any failure, interruption or defect of any kind in the supply
or character

- 41 -

of
electric service furnished to the Premises by reason of any Requirements of
Law, act or omission of the utility serving the Building (including without
limitation the Current Service Provider and any Alternate Service Provider) or
for any other reason not attributable to the gross negligence or willful misconduct
of Landlord, nor shall there be any allowance to Tenant for a diminution of
rental value, nor shall the same constitute an actual or constructive eviction
of Tenant, in whole or in part, or relieve Tenant from any of its Lease
obligations, and no liability shall arise on the part of Landlord by reason of
inconvenience, annoyance or injury to business.

          Section
13.3 If Landlord is compelled to
discontinue furnishing electricity to Tenant on a submetered basis by reason of
any Requirements of Law, Landlord shall promptly notify Tenant of such
Requirements of Law, and this Lease shall continue in full force and effect and
shall be unaffected thereby, except only that from and after the effective date
of such Requirements of Law, Landlord shall not be obligated to furnish
electricity to Tenant on a submetered basis and Tenant shall arrange to obtain
electricity directly from the utility company serving the Building. Such
electricity may be furnished to Tenant by means of the existing electrical facilities
serving the Premises to the extent that the same are available, suitable and
safe for such purposes. All meters and all additional panel boards, feeders,
risers, wiring and other conductors and equipment which may be required to
obtain electricity of substantially the same quantity, quality and character,
shall be installed by Landlord at Landlord’s expense, provided, however, that
Landlord shall be entitled to include such expenses as an Operating Expense
under Article 27.

          Section
13.4 Landlord shall furnish and
install all replacement lighting, tubes, lamps, bulbs and ballasts required in
the Premises and Tenant shall pay to Landlord or its designated contractor upon
demand as Additional Rent the then established reasonable charges therefor of
Landlord or its designated contractor, as the case may be.

          Section
13.5 Landlord shall have the right
at any time and from time to time during the Term, to the extent permitted by
Requirements of Law, to either contract for electricity service with the
current utility company providing electricity service to the Building (the “Current
Service Provider”) or to
contract for service from an alternate company or companies providing
electricity service (each an “Alternate Service Provider”). Tenant shall cooperate with Landlord, the
Current Service Provider and any Alternate Service Provider at all times, and
as reasonably necessary, to allow Landlord, Current Service Provider and any
Alternate Service Provider reasonable access to any and all electric lines,
feeders, wiring and other machinery within the Premises. Tenant may not utilize
the services of any Alternate Service Provider, and no such Alternate Service
Provider shall be permitted to provide service to Tenant or to install its
lines or other equipment within the Building, without the prior written consent
of Landlord, which may be given or withheld in Landlord’s sole discretion.

ARTICLE 14

ACCESS TO PREMISES

          Section
14.1 (A) Tenant shall permit Landlord, its agents and contractors and

- 42 -

public
utilities servicing the Building to erect, use and maintain concealed ducts,
pipes and conduits in and through the Premises at reasonable times and upon
reasonable notice, subject to Section 4.3. The erection of such ducts,
pipes and conduits shall not reduce the size of the Premises except to a de minimus extent. Landlord or its agents,
licensees, contractors and representatives shall have the right, subject to Section
4.3, to enter the Premises at all reasonable times upon reasonable prior
notice (except that no notice shall be required in case of emergency and which
notice may be oral in the case of an examination of the Premises), to examine
the same, and to make such repairs, alterations, improvements or additions
(including, without limitation, reinforcement of columns in the Premises as
Landlord may deem necessary or desirable for the support of the floors above
the Premises) (i) to the Premises or to any other portion of the Building as
Landlord may deem reasonably necessary or desirable, (ii) which Landlord may
elect to perform pursuant to Section 4.1 following Tenant’s failure to
make repairs or perform any work which Tenant is obligated to make or perform
under this Lease, or (iii) for the purpose of complying with all Requirements
of Law. Subject to Section 4.3, Landlord and such other persons
authorized by Landlord shall be allowed to take all materials into and upon the
Premises that may be reasonably required therefor and to take over discrete
portions of the Premises at any one time to the extent necessary to perform
such work or to maintain any additional columns erected in the Premises or to
ensure the safety of Tenant’s personnel while such work is being performed
without the same constituting an eviction or constructive eviction of Tenant in
whole or in part. The Fixed Rent (and any other item of Rental) shall in no way
abate while said repairs, alterations, improvements or additions are being
made, by reason of loss or interruption of business of Tenant, or otherwise. Tenant
shall also grant access at Landlord’s request to other tenants in the Building
in connection with Alterations being made by such tenants, provided that each
such tenant shall agree in writing to indemnify and hold Tenant harmless from
and against any and all claims, loss, cost and damage (including without
limitation reasonable attorney’s fees and disbursements) arising from such
access and that said access shall be on the same terms as those afforded to
Landlord hereunder. Landlord shall not be liable for any acts of other tenants
on the Premises in connection with any such access.

          (B)
Any work performed or installations made pursuant to this Article 14
shall be made with reasonable diligence and otherwise pursuant to Section
4.3. Landlord shall promptly repair any damage to the Premises or Tenant’s
Property caused by such work or installations.

          (C)
Any pipes, ducts, or conduits installed in or through the Premises pursuant to
this Article 14 shall either be concealed behind, beneath or within
partitioning, columns, ceilings or floors located or to be located in the
Premises, or completely enclosed at points immediately adjacent to
partitioning, columns or ceilings located or to be located in the Premises.

          Section
14.2 Throughout the Term, Landlord
may, during normal business hours and upon reasonable prior notice, which
notice may be oral, exhibit the Premises to prospective tenants, Mortgagees,
Lessors or purchasers of the Building. If Tenant shall not be present when entry
into the Premises shall be necessary or permissible hereunder,

- 43 -

Landlord
or its agents may enter the same without rendering Landlord or such agents
liable therefor (if during such entry Landlord or its agents shall accord
reasonable care to Tenant’s Property), and without in any manner affecting this
Lease.

          Section
14.3 Nothing contained in this Article
14 shall be deemed or construed to impose upon Landlord any obligation,
responsibility or liability whatsoever, for the care, supervision or repair of
the Building or any part thereof, other than as herein provided.

          Section
14.4 Landlord also shall have the
right at any time, without the same constituting an actual or constructive
eviction and without incurring any liability to Tenant therefor, to make or
permit to be made such changes, alterations, additions and improvements outside
of the Premises (or inside the Premises pursuant to Section 14.1 hereof)
in or to the Building and the fixtures and equipment thereof as Landlord shall
deem necessary or desirable (including, without limitation, changing the
arrangement or location of or erecting additional entrances or passageways,
doors and doorways, and corridors, columns, elevators, stairs, toilets or other
public parts of the Building), provided any such change does not deprive Tenant
of reasonable access to the Premises. All parts (except surfaces facing the
interior of the Premises) of all walls, windows and doors bounding the Premises
(including exterior Building walls, exterior core corridor walls, exterior
doors and entrances), all balconies, terraces and roofs adjacent to the
Premises, all space in, or adjacent to the Premises used for shafts, stacks,
stairways, chutes, pipes, conduits, ducts, fan rooms, heating, air cooling,
plumbing and other mechanical facilities, service closets and other Building
facilities, except Tenant Alterations (other than Building Systems), are not
part of the Premises, and Landlord shall have the use thereof, as well as
reasonable access thereto through the Premises (subject to the requirement
(except in the case of emergency) that Landlord give prior notice thereof to
Tenant as set forth in this Article 14), for the purposes of operation,
maintenance, alteration, repair and replacement. Notwithstanding the foregoing,
Landlord shall use reasonable efforts to minimize interference as provided in Section
4.3.

          Section
14.5 Landlord reserves the right to
add new addresses to the Building provided the designation “One Park Avenue” is
not removed as an address of the Building, and/or to place signs above the
entrances to the Building at any time and from time to time. Neither this Lease
nor any use by Tenant shall give Tenant any easement or other right in or to
the use 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,
or to any particular entranceways to public streets, and the use of such doors,
passages, concourses, plazas, entranceways and conveniences may without notice
to Tenant, be regulated or discontinued at any time by Landlord provided
Tenant’s access to Premises is not blocked. Notwithstanding the foregoing,
Landlord shall, at all times during the Term and any extension thereof, provide
reasonable access to the Building from an entrance on Park Avenue.

          Section
14.6 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

- 44 -

forcibly
enter the same without rendering Landlord or such agents liable therefor and
without in any manner affecting the obligations and covenants of this Lease.
Provided that the portion of the Premises designated by Tenant as a Secured
Area does not block access to Building Systems or the Basic Construction of the
Building, Landlord shall use reasonable efforts if reasonably practicable to
minimize the amount of outside traffic by Landlord and its agents, employees
and contractors that enter and pass through any Secured Area and will
endeavor to use other areas of the Premises to obtain such access, provided
such other areas are, in Landlord’s reasonable judgment, suitable for such
access in lieu of the Secured Area for Landlord’s purposes of being in the
Premises. Notwithstanding anything in this Lease to the contrary, but subject
to Section 4.3, in no event shall the obligations of Landlord under
this Section 14.6 in any way be construed to obligate Landlord to pay
overtime or premium rates for work, materials or access to the Secured Area or
any other area of the Premises, and in no event shall Landlord be deemed to be
obligated to spend any greater sums of money to perform any work than it would
have had to pay if Landlord, and its agents, employees and contractors, had
obtained access to the Secured Area except as specifically provided in this
Lease. Furthermore, the provisions of this Section 14.6 shall not
be construed to prevent Landlord and its agents, employees and contractors from
immediate access to any Secured Area in case of a real or threatened emergency,
or for the performance of work in any Secured Area, whether for Tenant or
otherwise.

          Section
14.7 Tenant shall be permitted
access to the Building and the Premises twenty-four (24) hours per day, seven
(7) days per week, subject to conditions beyond Landlord’s control and subject
to Landlord’s reasonable security and operating procedures for the Building.

ARTICLE 15

CERTIFICATE OF OCCUPANCY

          Section
15.1 Tenant shall not be obligated
to obtain any certificate of occupancy or amendment to the existing certificate
of occupancy in order to use the Premises as provided in Section 2.1,
provided, however, that Tenant shall obtain and maintain any amendment to the
certificate of occupancy covering the Premises which is required as a result of
any Alterations or Tenant’s particular manner of use of the Premises. Tenant
shall not at any time use or occupy the Premises in violation of the
certificate of occupancy for the Building and in the event that any
Governmental Authority shall hereafter contend or declare by notice, violation,
order or in any other manner whatsoever that the Premises are used for a purpose
in violation of such certificate of occupancy, Tenant shall, upon five (5)
Business Days notice from Landlord or any Governmental Authority, immediately
discontinue such use of the Premises. No certificate of occupancy shall be
deemed to constitute a representation or warranty by Landlord that the
Premises, or any part thereof, lawfully may be used or occupied for any
particular purpose or in any particular manner, including that the zoning of
the Building and/or the Premises permits Tenant’s intended use of the Premises.

          Section
15.2 Tenant, at Tenant’s sole cost
and expense and after notice to

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Landlord,
may contest by appropriate proceedings prosecuted diligently and in good faith,
any notice, violation, order or other communication by a Governmental Authority
that the Premises is being used in violation of any certificate of occupancy,
provided, that (i) Landlord (or any Indemnitee) shall not be subject to
prosecution for a crime, nor shall the Real Property or any part thereof be subject
to being condemned or vacated, nor shall any certificate of occupancy for the
Premises or the Building be suspended or in material risk of suspension by
reason of noncompliance or by reason of such contest, (ii) before the
commencement of such contest, if Landlord or any Indemnitee may be subject to
any civil fines or penalties or if Landlord may be liable to any independent
third party as a result of such noncompliance, or the Estimated Compliance
Costs, as reasonably estimated by Landlord, exceed Five Hundred Thousand and 00/100 ($500,000.00) Dollars, then
unless Tenant shall have met the Financial Requirements, Tenant shall furnish
to Landlord either (x) a bond of a surety company satisfactory to Landlord in
its reasonable discretion, in form and substance reasonably satisfactory to
Landlord, and in an amount at least equal to one hundred fifty percent (150%)
of the sum of (A) the cost of such compliance, (B) the civil penalties or fines
that may accrue by reason of such noncompliance (as reasonably estimated by
Landlord) and (C) the amount of such liability to independent third parties
((A), (B) and (C) being referred to herein collectively as “Estimated Compliance Costs”) and shall
indemnify Landlord (and any Indemnitee) against the cost of such compliance and
liability resulting from or incurred in connection with such contest or
noncompliance or (y) if requested by Tenant, other security satisfactory in all
respects to Landlord, (iii) such noncompliance or contest shall not constitute
or result in Landlord being in default (or being subject to default either with
the giving of notice or the passage of time or both) of the terms of any
Mortgage or Superior Lease, or if such Mortgage or Superior Lease shall
condition such noncompliance or contest upon the taking of action or furnishing
of security by Landlord, such action shall be taken or such security shall be
furnished at the expense of Tenant, (iv) such noncompliance or contest, in
Landlord’s reasonable judgment, shall not otherwise adversely affect the
Building or the Premises or the character or reputation of the Building or
Landlord, (v) Tenant shall keep Landlord regularly advised as to the status of
such proceedings and (vi) such noncompliance or contest shall not result in any
notes or notices of violation being issued against the Building or Real
Property by the Department of Buildings of the City of New York or any other
Governmental Authority.

ARTICLE 16

CONDITIONS OF LIMITATION

          Section
16.1 Each of the following events
shall be an “Event of Default” and constitute a condition of limitation hereunder:

          (A)
if Tenant shall default in the payment when due of any installment of Fixed
Rent, Additional Rent, Escalation Rent or other Rental and such default shall
continue for five (5) days after Landlord’s notice of such default is given to
Tenant; provided, however, that if Tenant shall default in the timely payment
of Fixed Rent, Additional Rent, Escalation Rent or other Rental two (2) or more
times in any period of twelve (12) months, then, notwithstanding that such
defaults shall have been cured, upon any further default

- 46 -

in
the timely payment of Fixed Rent, Additional Rent, Escalation Rent or other
Rental, Landlord may serve a three (3) days notice of termination of this Lease
upon Tenant without affording to Tenant an opportunity to cure such further
default; or

          (B)
If Tenant shall default in the observance or performance of any other term,
covenant or condition of this Lease on Tenant’s part to be observed or
performed and Tenant shall fail to remedy such default within thirty (30) days
after notice by Landlord to Tenant of such default, or, if such default is of
such a nature that it cannot be cured within thirty (30) days and the
continuation of the period required for cure will not subject Landlord to the
risk of civil or criminal liability or of default under any Mortgage or
Superior Lease, if Tenant shall not (i) within such thirty (30) day period
notify Landlord of its intention to cure the default, (ii) commence within such
thirty (30) day period to cure such default, and (iii) within an additional
sixty (60) day period, diligently prosecute such cure to completion and remedy
such default; or

          (C)
if Tenant’s interest in this Lease shall devolve upon or pass to any person,
whether by operation of law or otherwise, except as expressly permitted under Article
12; or

          (D)
if Tenant shall generally not, or shall be unable to, or shall admit in writing
its inability to, pay its debts as they become due; or

                              (i)
if Tenant shall commence or institute any case, proceeding or other action (a)
seeking relief on its behalf as debtor, or to adjudicate it a bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment, winding-up,
liquidation, dissolution, composition or other relief with respect to it or its
debts under any existing or future law of any jurisdiction, domestic or
foreign, relating to bankruptcy, insolvency, reorganization or relief of
debtors, or (b) seeking appointment of a receiver, trustee, custodian or other
similar official for it or for all or any substantial part of its property; or

                              (ii)
if Tenant shall make a general assignment for the benefit of creditors; or

                              (iii)
if any case, proceeding or other action shall be commenced or instituted
against Tenant (a) seeking to have an order for relief entered against it as
debtor or to adjudicate it a bankrupt or insolvent, or seeking reorganization,
arrangement, adjustment, winding-up, liquidation, dissolution, composition or
other relief with respect to it or its debts under any existing or future law
of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency,
reorganization or relief of debtors, or (b) seeking appointment of a receiver,
trustee, custodian or other similar official for it or for all or any
substantial part of its property, which either (x) results in any such entry of
an order for relief, adjudication of bankruptcy or insolvency or such an
appointment or the issuance or entry of any other order having a similar effect
or (y) remains undismissed for a period of sixty (60) days; or

                              (iv)
if any case, proceeding or other action shall be commenced or

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instituted
against Tenant seeking issuance of a warrant of attachment, execution,
distraint or similar process against all or any substantial part of its
property which results in the entry of an order for any such relief which shall
not have been vacated, discharged, or stayed or bonded pending appeal within
sixty (60) days from the entry thereof; or

                              (v)
if Tenant shall take any action in furtherance of, or indicating its consent
to, approval of, or acquiescence in, any of the acts set forth in clauses (ii),
(iii), (iv) or (v) above; or

                              (vi)
if a trustee, receiver or other custodian is appointed for any substantial part
of the assets of Tenant which appointment is not vacated or effectively stayed
within twenty (20) days.

          Section
16.2 (A) If an Event of Default (i) described in Section
16.1(D) (or Section 16.1(A) after two (2) or more defaults in
any twelve (12) month period as provided herein) shall occur, or (ii) described
in Sections 16.1(A), (B), or (C), shall occur and Landlord, at any time thereafter, at Landlord’s option
gives written notice to Tenant stating that this Lease and the Term shall
expire and terminate on the date specified in such notice, which date shall not
be less than three (3) days after the giving of such notice, then this Lease
and the Term and all rights of Tenant under this Lease shall expire and
terminate as if the date on which the Event of Default described in clause (i)
of this Section 16.2(A) occurred or the date specified in the notice
given pursuant to clause (ii) of this Section 16.2(A), as the case may
be, were the Fixed Expiration Date and Tenant immediately shall quit and
surrender the Premises but Tenant shall remain liable for damages as provided
in this Lease. Anything contained herein to the contrary notwithstanding, if
such termination shall be stayed by order of any court having jurisdiction over
any proceeding described in Section 16.1(D), or by federal or state
statute, then, following the expiration of any such stay, or if the trustee
appointed in any such proceeding, Tenant or Tenant as debtor-in-possession
shall fail to assume Tenant’s obligations under this Lease within the period
prescribed therefor by law or within one hundred twenty (120) days after entry
of the order for relief or as may be allowed by the court, or if said trustee,
Tenant or Tenant as debtor-in-possession shall fail to provide adequate
protection of Landlord’s right, title and interest in and to the Premises or
adequate assurance of the complete and continuous future performance of
Tenant’s obligations under this Lease, Landlord, to the extent permitted by law
or by leave of the court having jurisdiction over such proceeding, shall have
the right, at Landlord’s election, to terminate this Lease on five (5) days’
notice to Tenant, Tenant as debtor-in-possession or said trustee and upon the
expiration of said five (5) day period this Lease shall cease and expire as
aforesaid and Tenant, Tenant as debtor-in-possession or said trustee shall
immediately quit and surrender the Premises as aforesaid.

          (B)
If this Lease shall be terminated as provided in Section 16.2(A),
Landlord, without notice, may reenter and repossess the Premises and may dispossess
Tenant by summary proceedings or otherwise.

          Section
16.3 If, at any time, (i) Tenant
shall comprise two (2) or more persons,

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or
(ii) Tenant’s obligations under this Lease shall have been guaranteed by any
person other than Tenant, or (iii) Tenant’s interest in this Lease shall have
been assigned, the word “Tenant”, as used in Section 16.1(C), shall be
deemed to mean anyone or more of the persons primarily or secondarily liable
for Tenant’s obligations under this Lease. Any moneys received by Landlord from
or on behalf of Tenant during the pendency of any proceeding of the types
referred to in Section 16.1(C) shall be deemed paid as compensation for
the use and occupation of the Premises and the acceptance of any such
compensation by Landlord shall not be deemed an acceptance of Rental or a
waiver on the part of Landlord of any rights under Section 16.2.

          Section
16.4 (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, Escalation
Rent and Additional Rent 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 Fixed
Expiration Date, unless sooner terminated as in such lease provided, at the
same Fixed Rent, Escalation Rent and Additional Rent 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 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 Fixed Rent, Escalation Rent and Additional Rent 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 Bankruptcy Code Tenant is permitted to assign this lease in
disregard of the restrictions contained in Article 12 (or if this Lease
shall be assumed by a trustee), then 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 (i) 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 at least the sum of six (6) months’ Fixed Rent then reserved hereunder
plus an amount equal to all Escalation Rent payable under Article 27 for
the six (6) months preceding the year in which such assignment is intended to
become effective, which deposit shall be held by Landlord, in an interest
bearing account for the

- 49 -

benefit of Tenant, for the balance of that 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
generally accepted accounting principles, equal to at least ten (10) times the
aggregate of the annual Fixed Rent reserved hereunder plus all Escalation Rent
and Additional Rent for the preceding calendar year as aforesaid and (ii) 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 one hundred
twenty (120) days after there has been an order for relief under the 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 to the extent of
Landlord’s actual damages 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 any portion of such consideration
reasonably designated 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 to the
extent of the sum of (i) Landlord’s actual damages and (ii) the portion of the
Assignment Profit Landlord would have received if Landlord had consented to
such assignment pursuant to Article 12 hereof.

          (C) 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. § 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 material
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 U.S.C. §
365(b)(3) (as the same may be amended), shall be given to Landlord by the
trustee, Tenant or Tenant as debtor-in-possession not later than sixty (60)
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.

- 50 -

ARTICLE 17

REMEDIES AND DAMAGES

          Section
17.1 (A) If there shall occur any Event of Default, and this Lease and the
Term shall expire and come to an end as provided in Article 16:

                    (1)
Tenant shall quit and peacefully surrender the Premises to Landlord, and
Landlord and its agents may immediately re-enter the Premises or any part
thereof, either by summary proceedings, or by any other applicable legal action
or proceeding, and may repossess the Premises and dispossess Tenant and any
other persons from the Premises and remove any and all of their property and
effects from the Premises; and

                    (2)
Landlord, at Landlord’s option, may relet the whole or any part or parts of the
Premises from time to time, either in the name of Landlord or otherwise, to
such tenant or tenants, for such term or terms ending before, on or after the
Fixed Expiration Date, at such rental or rentals and upon such other
conditions, which may include concessions and free rent periods, as Landlord,
in its sole discretion, may determine; provided, however, that Landlord shall
have no obligation to relet the Premises or any part thereof and shall in no
event be liable for refusal or failure to relet the Premises or any part
thereof, or, in the event of any such reletting, for refusal or failure to
collect any rent due upon any such reletting, and no such refusal or failure shall
operate to relieve Tenant of any liability under this Lease or otherwise affect
any such liability. Landlord, at Landlord’s option, may make such repairs,
replacements, alterations, additions, improvements, decorations and other
physical changes in and to the Premises as Landlord, in its sole discretion,
considers advisable or necessary in connection with any such reletting or
proposed reletting, without relieving Tenant of any liability under this Lease
or otherwise affecting any such liability.

Tenant hereby waives the service of any notice of intention to reenter
or to institute legal proceedings to that end which may otherwise be required
to be given under any present or future law. Tenant, on its own behalf and on
behalf of all persons claiming through or under Tenant, including all
creditors, does further hereby waive any and all rights which Tenant and all
such persons might otherwise have under any present or future law to redeem the
Premises, or to re-enter or repossess the Premises, or to restore the operation
of this Lease, after (i) Tenant shall have been dispossessed by a judgment or
by warrant of any court or judge, or (ii) any re-entry by Landlord, or (iii)
any expiration or termination of this Lease and the Term, whether such
dispossession, re-entry, expiration or termination shall be by operation of law
or pursuant to the provisions of this Lease. The words “re-enter,” “re-entry”
and “re-entered” as used in this Lease shall not be deemed to be restricted to
their technical meanings. In the event of a breach or threatened breach by
Tenant, or any persons claiming through or under Tenant, of any term, covenant
or condition of this Lease, Landlord shall have the right to enjoin such breach
and the right to invoke any other remedy allowed by law or in equity as if
re-entry, summary proceedings and other special remedies were not provided in
this Lease for such breach. The right to invoke the remedies hereinbefore set
forth are cumulative and 

- 51 -

shall not preclude Landlord from invoking any other remedy allowed at
law or in equity.

          Section
17.2 (A) If this Lease and the Term shall expire and come to an end as
provided in Article 16, or by or under any summary proceeding or any
other action or proceeding, or if Landlord shall re-enter the Premises as
provided in Section 17.1, or by or under any summary proceeding or any
other action or proceeding, then, in any of said events:

                    (1)
Tenant shall pay to Landlord all Fixed Rent, Escalation Rent and Additional
Rent payable under this Lease by Tenant to Landlord to the date upon which this
Lease and the Term shall have expired and come to an end or to the date of
re-entry upon the Premises by Landlord, as the case may be;

                    (2)
Tenant also shall be liable for and shall pay to Landlord, as damages, any
deficiency (referred to as “Deficiency”)
between the Rental for the period which otherwise would have constituted the
unexpired portion of the Term to the Fixed Expiration Date and the net amount,
if any, of rents collected under any reletting effected pursuant to the
provisions of Section 17.1(A)(2) for any part of such period (first
deducting from the gross rents collected under any such reletting all of
Landlord’s expenses paid or incurred in connection with the termination of this
Lease, Landlord’s re-entry upon the Premises and such re-letting including, but
not limited to, all repossession costs, brokerage commissions, legal expenses,
attorneys’ fees and disbursements, alteration costs and any and all other
expenses of preparing the Premises for such re-letting or charged against the
Premises or the reletting); any such Deficiency shall be paid in monthly
installments by Tenant on the days specified in this Lease for payment of
installments of Fixed Rent. In no event shall Tenant in any suit pursuant to
this Section 17.2(A) for any Deficiency be entitled to any credit from
any such net rents from a reletting except to the extent such net rents are
actually received by Landlord. Landlord shall be entitled to recover from
Tenant each monthly Deficiency as the same shall arise, and no suit to collect
the amount of the Deficiency for any month shall prejudice Landlord’s right to
collect the Deficiency for any subsequent month by a similar proceeding; and

                    (3)
whether or not Landlord shall have collected any monthly Deficiency as
aforesaid, Landlord shall be entitled to recover from Tenant, and Tenant shall
pay to Landlord, on demand, in lieu of any monthly deficiency as and for
liquidated and agreed final damages, a sum equal to the amount by which the
Rental for the period which otherwise would have constituted the unexpired
portion of the Term to the Fixed Expiration Date (assuming Escalation Rent
during such period to be the same as in the year immediately preceding the
termination or re-entry, increased in each succeeding year by four percent (4%)
(on a compounded basis)), exceeds the then fair and reasonable rental value of
the Premises for the same period, both discounted to present worth at the
Discount Rate, less the aggregate amount of Deficiencies theretofore collected
by Landlord pursuant to the provisions of Section 17.2(A)(2) for the
same period; if, before presentation of proof of such liquidated damages to any
court, commission or tribunal, the Premises, or any part thereof, shall have
been re-let by Landlord for the period which otherwise would have constituted
the unexpired portion of

- 52 -

the Term, or any part thereof, the amount of rent reserved upon such
re-letting shall be deemed, prima facie, to be the fair and reasonable rental
value for the part or the whole of the Premises so re-let during the term of
the re-letting.

          (B) If the
Premises, or any part thereof, shall be re-let together with other space in the
Building, the rents collected or reserved under any such re-letting and the
expenses of any such re-letting shall be equitably apportioned for the purposes
of this Section 17.2. Tenant shall in no event be entitled to any rents
collected or payable under any re-letting, whether or not such rents shall
exceed the Fixed Rent reserved in this Lease.

          Section
17.3 Suit or suits for the recovery of 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 16, or had Landlord not
reentered the Premises. Notwithstanding anything herein to the contrary,
nothing contained in Article 16 or this Article 17 or any other
provision of this Lease shall be deemed to preclude, limit or otherwise abridge
the recovery by Landlord from Tenant of the maximum amount allowed to be
obtained as damages by any statute or rule of law or equity, or of any sums or
damages or other relief to which Landlord may be entitled in addition to the
damages set forth in this Article 17 whether or not such amount be
greater than any of the sums referred to in Article 17.

          Section
17.4 In addition, if this Lease is terminated under the provisions of Article
16, or if Landlord shall, reenter the Premises under the provisions of Article
16, 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 Fixed Expiration Date;

          (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 17.4,
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 reasonable cost of performing such covenant (as reasonably
estimated by an independent contractor selected by Landlord).

ARTICLE 18

FEES AND EXPENSES

          Section
18.1 If Tenant shall fail to pay any installment of Fixed Rent, Escalation
Rent, Additional Rent or any other item of Rental when due, Tenant shall pay to
Landlord, in addition to such installment of Fixed Rent, Escalation Rent or
other item of

- 53 -

Rental, as the case may be, as Additional Rent, a sum equal to interest
at the Applicable Rate on the amount unpaid, computed from the date such
payment was due to and including the date of payment.

ARTICLE 19

NO REPRESENTATIONS BY LANDLORD; DELIVERY OF PREMISES

          Section
19.1 Landlord and Landlord’s agents have made no representations or
promises with respect to the Building, the Real Property or the Premises except
as herein expressly set forth, and no rights, easements or licenses are acquired
by Tenant by implication or otherwise except as expressly set forth herein.
Tenant acknowledges that Tenant has inspected the Premises and is fully
familiar with the conditions thereof and that Landlord shall deliver and Tenant
shall accept possession of the Premises in its “as is” condition on the
Commencement Date, subject to Landlord’s obligation to perform Landlord’s Work
as provided hereunder. Landlord shall have no obligation of any kind to perform
any work in readying the Premises for occupancy or to perform any other work or
make any other installations with respect to the Premises or the Building,
other than the work set forth on Schedule D (collectively, “Landlord’s Work”).

          Section
19.2 (A) Landlord shall, at its sole cost and expense, perform the
Landlord’s Work set forth in Schedule D attached hereto in accordance
with Schedule D.

          (B) “Substantial Completion”, as it relates
to all or any part of Landlord’s Work shall be deemed to have occurred as soon
as Landlord’s Work (or the applicable portion thereof) has been substantially
completed, except for (a) non-material items of construction, mechanical
adjustment or decoration that remain to be performed (i.e., so-called “punch
list” items) the absence of which do not materially affect use or occupancy of
the space, or (b) portions of Landlord’s Work that have not been completed
because under good construction scheduling practice such work should be done
after still incomplete work by Tenant on any Alterations has been completed; provided,
however, that in the event of a Tenant Delay, Substantial Completion of
any portion of Landlord’s Work shall be deemed to have occurred on the date on
which Substantial Completion would have occurred but for such Tenant Delay. In
determining when Substantial Completion of any applicable portion of Landlord’s
Work would have occurred but for a Tenant Delay, it shall be assumed that
Substantial Completion is delayed one Business Day for each Business Day
Substantial Completion is delayed due to such Tenant Delay.

          (C) As used
in this Lease, “Tenant Delay”
means any delay in the performance of Landlord’s Work by reason of: (a) any
action or omission of Tenant, its agents, employees, invitees, licenses,
contractors or subcontractors; (b) any direction by Tenant that Landlord
suspend or slow down the progress of Landlord’s Work or any part thereof; or
(c) any displacement (resulting from any of the foregoing) of any portion of
Landlord’s Work from its place in the construction schedule and the
rescheduling of such Landlord’s Work (due regard being given to the need to
minimize disturbance to other tenants and occupants of the Building), to the
extent such delay actually prevents or delays Landlord

- 54 -

from achieving Substantial Completion of the Landlord’s Work and if the
performance of the Landlord’s Work is not, has not or would not have been
delayed by any cause other than the items set forth in (a), (b) and (c) above.

          (D)
Following Substantial Completion of the Landlord’s Work in the Premises, Tenant
shall make a final inspection thereof together with Landlord and Landlord’s
contractor, and such parties shall jointly prepare a final “punch list.”
Landlord shall thereafter cause its contractor to perform the work necessary to
complete such “punch list” in a prompt and diligent manner.

          Section
19.3 If for any reason whatsoever, Landlord shall be unable to deliver
possession of the Premises on the 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. Landlord shall not be subject to
any liability for failure to give possession on the date on which the
Commencement Date is contemplated to occur 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).

ARTICLE 20

END OF TERM

          Upon the
expiration or other termination of this Lease, Tenant shall quit and surrender
to Landlord the Premises, vacant, broom clean and in good order and condition,
ordinary wear and tear, repairs and damage for which Tenant is not responsible
under the terms of this Lease excepted, and Tenant shall remove all of its
property as may be required pursuant to Article 3. This obligation
shall survive the expiration or sooner termination of the Term. If the last day
of the Term or any renewal thereof falls on Saturday or Sunday, this Lease
shall expire on the Business Day immediately preceding such day. Tenant
expressly waives, for itself and for any person claiming through or under
Tenant, any rights which Tenant or any such person may have under the
provisions of Section 2201 of the New York Civil Practice Law and Rules and of
any successor law of like import then in force in connection with any holdover
summary proceedings which Landlord may institute to enforce the foregoing
provisions of this Article 20.

ARTICLE 21

QUIET ENJOYMENT

Provided no Event of Default has occurred and is continuing, Tenant
shall have peaceful and quiet enjoyment of the Premises without hindrance on
the part of Landlord, and Landlord shall warrant and defend Tenant in such
peaceful and quiet use and enjoyment of the Premises against claims of all
persons claiming by, through or under

- 55 -

Landlord, subject, nevertheless, to the terms and conditions of this
Lease.

ARTICLE 22

POSSESSION

          Subject to
the provisions of Section 19.3, Landlord shall deliver possession of the
Premises on the Commencement Date.

ARTICLE 23

NO WAIVER

          Section
23.1 No act or thing done by Landlord or Landlord’s agents during the Term
shall be deemed an acceptance of a surrender of the Premises, and no agreement
to accept such surrender shall be valid unless in writing signed by Landlord.
No employee of Landlord or of Landlord’s agents shall have any power to accept
the keys of the Premises prior to the termination of this Lease. The delivery
of keys to any employee of Landlord or of Landlord’s agents shall not operate
as a termination of this Lease or a surrender of the Premises.

          Section
23.2 (A) The failure of Landlord to seek redress for violation of, or to
insist upon the strict performance of, any covenant or condition of this Lease,
or any of the Rules and Regulations set forth or hereafter adopted by Landlord,
shall not prevent a subsequent act, which would have originally constituted a
violation, from having all of the force and effect of an original violation.
The receipt by Landlord of Fixed Rent, Escalation Rent, or Additional Rent with
knowledge of the breach of any covenant of this Lease shall not be deemed a
waiver of such breach. The failure of Landlord to enforce any of the Rules and
Regulations set forth, or hereafter adopted, against Tenant or any other tenant
in the Building shall not be deemed a waiver of any such Rules and Regulations.
No provision of this Lease shall be deemed to have been waived by Landlord,
unless such waiver be in writing signed by Landlord.

          (B) The
failure of Tenant to seek redress for violation of, or to insist upon the
strict performance of, any covenant or condition of this Lease, shall not
prevent a subsequent act, which would not have originally constituted a
violation, from having all of the force and effect of an original violation. No
provision of this Lease shall be deemed to have been waived by Tenant, unless
such waiver shall be in writing signed by Tenant.

ARTICLE 24

AFFIRMATIVE WAIVERS

          Section
24.1 Tenant, on behalf of itself and any and all persons claiming through
or under Tenant, does hereby waive and surrender all rights and privileges
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 rejected therefrom by process of law or under the terms
of this Lease or after the termination of this Lease as provided in this Lease.

- 56 -

          Section
24.2 TENANT HEREBY WAIVES TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM BROUGHT BY OR AGAINST TENANT ON ANY MATTER WHATSOEVER ARISING OUT
OF OR IN ANY WAY CONNECTED WITH THIS LEASE, THE RELATIONSHIP OF LANDLORD AND
TENANT, AND 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.

          Section
24.3 Tenant shall not interpose any counterclaim of any kind in any action
or proceeding commenced by Landlord to recover possession of the Premises,
unless the failure by Tenant to interpose such counterclaim in any such action
or proceeding would preclude Tenant from asserting the subject matter of such
counterclaim in a separate action or proceeding, and shall not seek to
consolidate any such proceeding with any other action which may have been or
will be brought in any other court by Tenant.

ARTICLE 25

INABILITY TO PERFORM

          Except as
provided in Article 10 with respect to damage to the Premises arising
from fire or other casualties and in Article 11 with respect to
condemnation, this Lease and the obligation of Tenant to pay Fixed Rent,
Escalation Rent and other Rentals hereunder and perform all of the other
covenants and agreements hereunder on the part of Tenant to be performed shall
in no way be affected, impaired or excused because Landlord is unable to
fulfill any of its obligations under this Lease expressly or impliedly to be
performed by Landlord or because Landlord is unable to make, or is delayed in
making any repairs, additions, alterations, improvements or decorations or is
unable to supply or is delayed in supplying any equipment or fixtures, if
Landlord is prevented or delayed from so doing by reason of strikes, labor
troubles, accidents, governmental preemption in connection with a national
emergency, Requirements of Law, Tenant Delays, conditions of supply and demand
which have been or are affected by war, other emergency, fire or other
casualty, adjustment of insurance claims, acts of God, or any other similar or
dissimilar cause beyond Landlord’s reasonable control (collectively, “Unavoidable Delays”). Landlord shall
endeavor to promptly notify Tenant of any Unavoidable Delay which prevents
Landlord from fulfilling any of its obligations under this Lease but failure to
do shall in no event impair the operation of the provisions of this Article
25.

ARTICLE 26

BILLS AND NOTICES

Except as otherwise expressly provided in this Lease, any bills,
statements, consents, notices, demands, requests or other communications given
or required to be given under this Lease shall be in writing and shall be
deemed sufficiently given or rendered if delivered by hand (against an
affidavit of delivery) or by a nationally recognized overnight courier (against
a receipt of delivery) or if sent by registered or

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certified mail (return receipt requested) addressed:

	
  

 	
  

 
	
  

 	
           if to
 Tenant, prior to the Rent Commencement Date, at Tenant’s address set forth in
 the Definitions of this Lease and, after the Rent Commencement Date, at the
 Premises, in each case Attn: Frank Suozzi and Steven Ford, with a copy to
 Davis Polk & Wardwell, 450 Lexington Avenue, New York, New York 10017,
 Attn: Thomas Patrick Dore, Jr., Esq., or

 
	
  

 	
  

 
	
  

 	
           if to
 Landlord, at Landlord’s address set forth in the Definitions of this Lease,
 Attn: Mark Teitelbaum, and to Alan Katz, Esq., Squadron, Ellenoff, Plesent
 & Sheinfeld LLP, 551 Fifth Avenue, New York, New York 10176,

 

or to such other address(es) and with such other copies as either
Landlord or Tenant may reasonably designate as its new address(es) or
additional address(es) for such purposes by notice given to the other in
accordance with the provisions of this Article 26. Any such bill,
statement, consent, notice, demand, request or other communication shall be
deemed to have been rendered or given (a) on the date it shall have been
delivered, if delivered by hand or by reputable overnight delivery courier or
(b) by the fifth (5th) day after mailing as provided above.

          Section
26.1 Unless Landlord shall render written notice to Tenant to the contrary,
the Agent is authorized to act as Landlord’s agent in connection with the
performance of this Lease, including, without limitation, the delivery of any
and all notices and consents. Tenant shall be entitled to rely upon
correspondence received from the Agent, as agent for the Landlord. Tenant
acknowledges that Agent is acting solely as agent for Landlord in connection
with the foregoing; and Agent and its direct and indirect partners, officers,
shareholders, directors and employees shall have no liability to Tenant in
connection with the performance of this Lease and Tenant waives any and all
claims against any such party arising out of, or in any way connected with,
this Lease or the Real Property. Each party may have counsel deliver notices to
each other with the same force and effect as if given by the party represented
by such counsel.

ARTICLE 27

ESCALATION

          Section
27.1 For the purposes of this Article 27 and this Lease, the
following terms shall have the meanings set forth below.

          (A) “Assessed Valuation” shall mean the
amount for which the Real Property is assessed pursuant to applicable provisions
of the New York City Charter and of the Administrative Code of the City of New
York for the purpose of imposition of Taxes for such Tax Year.

          (B) “Base Operating Year” shall mean the
Operating Year commencing on January 1, 2000 and ending on
December 31, 2000.

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          (C) “Base Taxes” shall mean the Taxes, as finally determined, for the calendar
year commencing on January 1, 2000 and ending on December 31, 2000.

          (D) “Operating Expenses” shall mean the aggregate of those costs
and expenses (and taxes, if any, thereon) paid or incurred by or on behalf of
Landlord (whether directly or through independent contractors, and whether or
not within the contemplation of the parties) in respect of the maintenance,
operation, repair, replacement, improvement, policing, insuring, equipping,
safety, cleaning and security of the Real Property, including, without
limitation:

                    (a)
the costs of gas, oil, steam, water, sewer rental, electricity, as indicated by
meter, or if there be no meter, as determined by an independent electrical
consultant designated by Landlord for common areas; (b) HVAC and other
utilities furnished to the Building and utility taxes (excluding HVAC to the
extent payable directly by tenants of the Building); (c) elevator and escalator
maintenance; (d) metal, elevator cab, lobby, and public area maintenance and
cleaning; (e) painting and decoration; (f) window cleaning; (g) rubbish
removal; (h) snow and ice removal; (i) sanding and salting; (j) sanitary
control; (k) security; (l) maintenance and replacement of lighting fixtures,
tubes and bulbs in public areas; (m) depreciation of hand tools and other
movable equipment used exclusively for the Building or equitably apportioned if
used at other properties; (n) maintenance of conduits in the Building; (o)
flood, fire, extended coverage, boiler and machinery, sprinkler apparatus,
public liability and property damage, loss of rental, fidelity and plate glass
insurance and any other insurance customarily maintained by landlords of
first-class, office buildings in the Borough of Manhattan; (p) wages, salaries,
bonuses, disability benefits, hospitalization, medical, surgical, dental,
optical, psychiatric, legal, union and general welfare benefits (including group
life insurance), any pension, retirement or life insurance plan and other
benefit or expense respecting employees of Landlord (or its agents) up to and
including the building manager, provided that to the extent that Landlord
employs the services of any such persons at the Building and at additional
locations other than the Building, then only a pro rata portion (based on an
equitable time estimate) of the foregoing expenses incurred on behalf of the
Building shall be included in Operating Expenses; (q) uniforms and working
clothes for such employees and the cleaning and replacement thereof; (r)
expenses imposed on Landlord pursuant to Requirements of Law or to any
collective bargaining agreement with respect to such employees; (s) workmen’s
compensation insurance, payroll, social security, unemployment and other
similar employment taxes with respect to such employees; (t) the cost of, or
the cost of the rental of, together with the cost of the installation of, any
Building security or other system used in connection with the life or property
protection installed after the Base Operating Year (including the cost of, or
the cost or value of the rental of, all machinery, electronic systems and other
equipment comprising any part thereof), as well as the cost of the operation
and repair of any such system in operation during the Base Operating Year; (u)
charges of independent contractors; (v) the cost of repairs, replacements and
improvements made in connection with the Basic Construction of the Building, Building
Systems and facilities and other portions of the Building, window washing
equipment and snow removal equipment; (w) whether or not capitalized under
generally accepted accounting principles, the cost of alterations, repairs,
improvements,

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equipment or machinery installed after the Commencement Date (i) by
reason of Requirements of Law (including without limitation costs to Landlord,
if any, as contemplated under Section 13.3) or (ii), for the purpose of
(A) reducing energy consumption or reducing other Operating Expenses or (B)
improving the safety of the Building, whether structural, ordinary or
extraordinary, foreseen or unforeseen, and whether or not required by this
Lease; (y) salaries of bookkeepers and accountants, provided that to the extent
that Landlord employs the services of any such persons at the Building and at
additional locations other than the Building, then only a pro rata allocation
(based on an equitable time allocation) of the foregoing expenses incurred on
behalf of the Building shall be included in Operating Expenses; (z)
professional and consulting fees, including legal and accounting fees and
disbursements (exclusive of fees and disbursements to attorneys in applying for
reduction of Taxes which shall be included in “Taxes” as provided below); (aa)
association fees or dues; (bb) telephone and stationery; (cc) directory; (dd)
management fees for the management of the Real Property.

          The
following shall be excluded from Operating Expenses:

                    (i)
Taxes, and any franchise, inheritance, estate, gift, succession or income taxes
(but not sales or use taxes) or other taxes imposed upon the profit or income
of Landlord; (ii) interest and amortization on Mortgages and fixed rent on
Superior Leases; (iii) leasing commissions, advertising expenses and other
expenses incurred in connection with the leasing of space in the Building; (iv)
capital improvements except as provided in this Article 27; (v) the cost
of electrical energy furnished directly to Tenant and other tenants of the
Building for rentable space in the Building; (vi) the cost of tenant
installations and decorations incurred in connection with preparing space for
an existing or new tenant; (vii) legal fees incurred in connection with the
negotiation of any space lease in the Building; (viii) refinancing costs; (ix)
depreciation; (x) all costs relating to activities for the enforcement of
leases of space in the Building; (xi) all costs and expenses of operating any
commercial space in the Building; (xii) costs for which Landlord is reimbursed
by any tenant or occupant of the Building (other than as Operating Expenses);
(xiii) the cost of any electric current furnished to the Building for purposes
other than the operation of Building Systems, Basic Construction of the
Building and common areas; (xiv) any increase in insurance premiums to the
extent that such increase is directly caused or attributable to the use,
occupancy or act of another tenant of the Building; (xv) the cost of any items
for which Landlord is reimbursed by insurance or otherwise compensated by
parties other than tenants of the Building pursuant to clauses similar to this
paragraph; (xvi) amounts paid to Landlord or its affiliates in excess of the
amount which would be paid in an arms length transaction; (xvii) expenses in
connection with services or other benefits which are not provided to Tenant or
for which Tenant is charged directly, but which are provided to other tenants
of the Building without separate charge; (xviii) the cost of alterations of
space in the Building leased to other tenants; (xvix) ground rent or similar
payments to a Lessor; and (xvx) the cost of removal, abatement, or treatment of
asbestos or any other hazardous substance or gas.

                    (1)
If Landlord is not furnishing any particular work or service (the cost of which
if performed by Landlord would constitute an Operating Expense) to a tenant who

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has undertaken to perform such work or service in lieu of the
performance thereof by Landlord, Operating Expenses shall be deemed to be
increased by an amount equal to the additional Operating Expenses which
reasonably would have been incurred during such period by Landlord if it had at
its own expense furnished such work or services to such tenant.

                    (2)
Any insurance proceeds received with respect to any item previously included as
an Operating Expense shall be deducted from Operating Expenses for the
Operating Year in which such proceeds are received.

                    (3)
In determining the amount of Operating Expenses for any Operating Year, if less
than 95% of the Building rentable area shall have been occupied by tenant(s) at
any time during any such Operating Year, Operating Expenses shall be determined
for such Operating Year to be an amount equal to the like expenses which would
normally be expected to be incurred had 95% of the rentable areas been occupied
throughout such Operating Year.

                    (4)
If any repair, replacement, equipment or improvement referred to in Section
27.1(D) must be capitalized under generally accepted accounting principles,
the cost of such repair, replacement, equipment or improvement shall be
amortized over the lesser of (i) the useful life of such repair, replacement,
equipment or improvement as reasonably determined by Landlord, and (ii) fifteen
(15) years, and the annual amortization, together with interest thereon at the
Base Rate, of such repair, replacement, equipment or improvement shall be
deemed an Operating Expense in each of the Operating Years during which such
cost is amortized or depreciated, as the case may be; provided, however, with
respect to any capital improvement and/or any machines or equipment which is
made or becomes operational after the Commencement Date, and which has the
effect of reducing the expenses which otherwise would be included in Operating
Expenses, the amount included in Operating Expenses in any Operating Year until
such improvement and/or machinery or equipment has been fully amortized or
depreciated, as the case may be, shall be the lesser of (x) the amortization or
depreciation, as the case may be, of such capital improvement and/or machinery
or equipment, which would have been included in Operating Expenses pursuant to
the foregoing provisions or this Section 27.1(D) or (y) the amount of
savings, as estimated by Landlord, resulting from the installation and
operation of such improvement and/or machine or equipment.

          (E) “Operating Statement” shall mean a
statement setting forth Landlord’s calculation of Tenant’s Operating Payment
payable for an Operating Year pursuant to the provisions of this Article 27.

          (F) “Operating Year” shall mean a twelve
month period commencing on January 1 and ending on the succeeding December 31
for any part or all of which Escalation Rent shall be payable pursuant to this Article
27 beginning with the January 1, 2001 through December 31, 2001 calendar
year.

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          (G) “Taxes” shall mean the aggregate amount of real estate taxes and any general
or special assessments actually imposed upon the Real Property (including,
without limitation, (i) assessments made upon or with respect to any “air” and
“development” rights now or hereafter appurtenant to or affecting the Real
Property, (ii) any fee, tax or charge imposed by any Governmental Authority for
any vaults, vault space or other space within or outside the boundaries of the
Real Property which are not paid by the occupant or user thereof, (iii) any
assessments levied after the date of this Lease for public benefits to the Real
Property or the Building) and (iv) business improvement and district taxes and
charges; provided, that if because of any change in the taxation of real
estate, any other tax or assessment, however denominated (including, without
limitation, any franchise, income, profit, sales, use, occupancy, gross
receipts or rental tax) is imposed upon Landlord or the owner of the Real
Property or the Building, or the occupancy, rents or income therefrom, in
substitution for or in lieu of or in addition to any of the foregoing Taxes,
such other tax or assessment shall be deemed part of Taxes computed as if
Landlord’s sole asset were the Real Property (it being acknowledged and agreed
that any franchise, income, profit, sales, use, occupancy, gross receipts or
rental tax which is unique to Landlord and which is not related to the Real
Property shall be excluded from Taxes). With respect to any Tax Year, all
expenses, including without limitation attorneys’ fees and disbursements,
experts’ and other witnesses’ fees, incurred in contesting the validity or
amount of any Taxes or in obtaining a refund of Taxes shall be considered as
part of the Taxes for such Tax Year. Except as set forth in the proviso above
with respect to changes in taxation, Taxes shall not be deemed to include (w)
any taxes on Landlord’s income or profit, (x) excise or franchise taxes,
capital levies, (y) gift, succession, transfer, estate or inheritance taxes or
(z) late payment interest and/or penalties.

          (H) “Tax Payment Installment” shall mean each installment on account of
Tenant’s Tax Payment which is due on the dates required under this Lease, which
as of the date hereof shall mean two equal installments payable on December 1st
and June 1st of each year, subject to revision in accordance with Section
27.2(B).

          (I) “Tax Statement” shall mean a statement, as the same may be
revised from time to time by Landlord, setting forth Landlord’s calculation of
the Tax Payment due for a Tax Year pursuant to the provisions of this Article
27 which shall be accompanied by a copy of the relevant tax bill or, if
such relevant tax bill not been delivered by the applicable taxing authority, a
statement that such tax bill has not yet been received.

          (J) “Tax Year” shall mean the period July 1 through June 30 (or such other
period as hereinafter may be duly adopted by The City of New York as its fiscal
year for real estate tax purposes), any portion of which occurs during the
Term.

          Section
27.2 (A) Tenant shall pay to Landlord as Additional Rent for each Tax Year
or partial Tax Year (occurring on and after January 1, 2001) throughout the
Term an amount equal to (i) Tenant’s Tax Share multiplied by (ii) the amount by
which the Taxes payable for such Tax Year exceed the Base Taxes (the “Tax Payment”) as shown on the Tax Statements rendered to Tenant from time
to time with respect to such Tax

- 62 -

Year as hereinafter provided. Tenant shall not be entitled to any
credit against any Tax Payment on account of any discount that Landlord may
receive by virtue of any early payment of Taxes or on account of any exemptions
or abatements of Taxes to which the Real Property is entitled and shall not be
entitled to any benefit of any exemption or abatement earned or paid for by
Landlord (such as, for example, a tax credit received in connection with an
off-site development), and Taxes shall be calculated without taking into
account any such discounts, exemptions or abatements. The Taxes shall be
computed initially on the basis of the Assessed Valuation in effect at the time
the Tax Statement is rendered (as the Taxes may have been settled or finally
adjudicated prior to such time) regardless of any then pending application,
proceeding or appeal respecting the reduction of any such Assessed Valuation,
but shall be subject to subsequent adjustment as provided in Section 27.2(D).

          (B) At any
time during or after the Term, Landlord may render to Tenant a Tax Statement or
Tax Statements showing Landlord’s calculation of the Tax Payment for such Tax
Year and/or any prior Tax Year. The Tax Payment for each Tax Year shall be due
and payable in full (each a “Tax Payment
Installment”) in the same manner that Taxes for such Tax Year
are due and payable by Landlord to the City of New York or other applicable
Governmental Authority all as determined by Landlord. Tenant’s Tax Payment
shall be due and payable in two (2) equal semi-annual Tax Payment Installments
in advance on the first day of June and December of each calendar year. The
first such Tax Payment Installment shall be due on December 1, 2000. If during
the Term, Taxes are required to be paid (either to the appropriate taxing
authorities or as tax escrow payments to a Mortgagee or Lessor) in full or in
monthly, quarterly, or other installments, on any other date or dates than as
presently required, then at Landlord’s option, upon prior written notice to
Tenant, Tenant’s Tax Payments shall be correspondingly accelerated or revised
so that said Tenant’s Tax Payment Installments are due at least thirty (30)
days prior to the date payments are due to the taxing authorities or the
Mortgagee or Lessor, provided, however, that in no event shall Tenant’s
obligations under this Section 27.2 in respect of any Tax Year exceed
Tenant’s Tax Payment for such Tax Year. If the Tax Year established by The City
of New York shall be changed, any Taxes for the Tax Year prior to such change
which are included within the new Tax Year and which were the subject of a
prior Tax Statement shall be apportioned for the purpose of calculating the Tax
Payment payable with respect to such new Tax Year. Landlord’s failure to render
a Tax Statement during any Tax Year shall not prejudice Landlord’s right to
render a Tax Statement with respect to such Tax Year or any subsequent Tax
Year, and shall not eliminate or reduce Tenant’s obligation to make Tax
Payments pursuant to this Article 27 for such Tax Year or any such
subsequent Tax Year.

          (C) The Tax
Payment shall be prorated for any partial Tax Year in which the Commencement
Date or Expiration Date shall occur to correspond to that portion of such Tax
Year occurring from and after or before and ending on such dates, as
applicable, within the Term. If the amounts paid by Tenant pursuant to this Section
27.2 on account of any Tax Payment Installment shall be less than the
amount of such Tax Payment Installment as shown on the most recent Tax
Statement rendered by Landlord, Tenant shall, within twenty (20) days
thereafter, pay to Landlord an amount equal to the amount

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of any underpayment of such Tax Payment Installment and, in the event
of an overpayment, Landlord shall credit against subsequent Tax Payments the
amount of Tenant’s overpayment. Any amount owing to Tenant subsequent to the
Term shall be paid to Tenant within twenty (20) days after a final
determination has been made of the amount due to Tenant, which final
determination shall be made by Landlord within a reasonable period of time
following the Expiration Date.

          (D) Only Landlord
shall be eligible to institute tax reduction or other proceedings to reduce the
Assessed Valuation. In the event that after a Tax Statement has been sent to
Tenant an Assessed Valuation which had been utilized in computing the Taxes for
a Tax Year is reduced (as a result of settlement, final determination of legal
proceedings or otherwise), and as a result thereof a refund of Taxes is
actually received by or on behalf of Landlord, then, promptly after receipt of
such refund, Landlord shall send by notice to Tenant a Tax Statement adjusting
the Taxes for such Tax Year and setting forth Tenant’s Tax Share of such refund
and Tenant shall be entitled to receive such Tenant’s Tax Share of such refund
by way of a credit against the Tax Payment next becoming due after the sending
of such Tax Statement, provided, however, that Tenant’s Tax Share of such
refund shall be limited to the portion of the Escalation Rent, if any, which
Tenant had theretofore paid to Landlord attributable to increases in Taxes for the
Tax Year to which the refund is applicable on the basis of the Assessed
Valuation before it had been reduced and shall be reduced by Tenant’s Tax Share
of any and all costs and expenses associated with such proceedings.

          Section
27.3 (A) Tenant shall pay as Additional Rent for each Operating Year or
partial Operating Year (occurring on and after January 1, 2001) throughout the
Term an amount equal to (i) Tenant’s Operating Share multiplied by (ii) the
amount by which Operating Expenses for such Operating Year exceed the Operating
Expenses for the Base Operating Year (each, a “Tenant’s Operating Payment”) as hereinafter provided.

          (B) At any
time during or after the term of this Lease, Landlord may render by notice to
Tenant an Operating Statement or Statements showing Landlord’s calculation of
Tenant’s Operating Payment for such Operating Year and/or any prior Operating
Year, which statements shall set forth the Operating Expenses in reasonable
detail. Landlord’s failure to render an Operating Statement during or with
respect to any Operating Year in question shall not prejudice Landlord’s right
to render an Operating Statement during or with respect to such Operating Year
or any other Operating Year, and shall not eliminate or reduce Tenant’s
obligation to pay Tenant’s Operating Payment pursuant to this Article 27
for such Operating Year or any other Operating Year.

          (C) (1) As
used in this Section 27.3(C), (i) the term “Tentative Monthly Escalation Charge”
shall mean a sum equal to 1/12th of Tenant’s Operating Share multiplied by the
amount of which Landlord’s Estimate for such Operating Year exceeds the
Operating Expenses for the Base Operating Year, (ii) the term “Current Operating Year” shall mean the
Operating Year in which a demand is made upon Tenant for payment of a Tentative
Monthly Escalation Charge and (iii) “Landlord’s
Estimate” shall mean Landlord’s good faith estimate of Operating
Expenses for the Current Operating

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Year which shall consist of Operating Expenses for the immediately
preceding Operating Year increased by (x) actual or known increases in
Operating Expense line items for the Current Operating Year and (y) Landlord’s
good faith estimate of the increase in Operating Expense line items for the
Current Operating Year that are not yet known, not to exceed one hundred and
five percent (105%) of the amount of such not yet known line items for the
immediately preceding Operating Year.

                    (2)
At any time in any Operating Year, Landlord may by notice to Tenant demand and
collect from Tenant, as Additional Rent, a sum equal to the Tentative Monthly
Escalation Charge multiplied by the number of months in said Operating Year
preceding such demand (less any amounts theretofore paid by Tenant on account
of the Tenant’s Operating Payment for such Operating Year), and thereafter,
commencing with the month in which the demand is made and continuing thereafter
for each month remaining in said Operating Year, the monthly installments of
Fixed Rent shall be deemed increased by the Tentative Monthly Escalation
Charge. Any amount due to Landlord under this Section 27.3(C) may be
included by Landlord in any Operating Statement rendered to Tenant as provided
in Section 27.3(B). Nothing herein shall restrict Landlord from issuing
a notice at any time and from time to time (but not more than once in any
calendar year) revising the Tentative Monthly Escalation Charge to reflect an
increase or decrease in the Tentative Monthly Escalation Charge, effective with
respect to the next ensuing Tentative Monthly Escalation Charge which is at
least thirty (30) days from the date of such notice.

                    (3)
After the end of the Current Operating Year and at any time that Landlord
renders an Operating Statement or Statements to Tenant as provided in Section
27.3(B), the amounts, if any, collected by Landlord from Tenant under this Section
27.3(C) on account of the Tentative Monthly Escalation Charge shall be
adjusted, and, if the amount so collected is less than or exceeds the amount
actually due under said Operating Statement for the Operating Year, a
reconciliation shall be made as follows: Tenant shall be debited with any
Tenant’s Operating Payment shown on such Operating Statement and credited with
the amounts, if any, paid by Tenant on account in accordance with the
provisions of Section 27.3(C)(2) for the Operating Year in question.
Tenant shall pay any net debit balance to Landlord within twenty (20) days
after rendition by Landlord of an invoice for such net debit balance, and any
net credit balance shall be applied against the Tenant’s Operating Payment next
becoming due. Any amount owing to Tenant subsequent to the term of the Lease
shall be paid to Tenant within twenty (20) days after a final determination has
been made of the amount due to Tenant.

          Section
27.4 Any Operating Statement sent to Tenant shall be conclusively binding
upon Tenant unless, within sixty (60) days after such Operating Statement is
sent, Tenant shall send a notice to Landlord objecting to such Operating
Statement and specifying the respects in which such Operating Statement is
disputed. Tenant shall not retain any representatives on a contingent fee basis
in connection with a review of any Operating Statement. If such dispute is not
resolved between Landlord and Tenant within thirty (30) days thereafter, then
if such notice is sent, provided Tenant shall pay to (or has paid) Landlord the
amount shown to be due to Landlord on the disputed Operating

- 65 -

Statement, then Landlord and Tenant may refer the decision of the
issues raised to a reputable independent firm of certified public accountants
mutually acceptable to Landlord and Tenant, and the decision of such
accountants shall be conclusive and binding upon the parties. The fees and
expenses involved in such decision shall be borne by the unsuccessful party
(and if both parties are partially unsuccessful, the accountants shall
apportion the fees and expenses between the parties based on the relative
degree of success of each party). In the event that Landlord and Tenant shall
be unable to agree upon the designation of such firm of certified public
accountants within thirty (30) days after receipt of notice from the other
party requesting agreement as to the designation of such certified public
accountants, which notice shall contain the names and addresses of two or more
firms of 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 New York office of the
American Arbitration Association to designate a reputable nationally recognized
independent firm of certified public accountants whose decision shall be
conclusive and binding upon the parties, and the cost of such certified public
accountants designated by the American Arbitration Association shall be borne
as hereinbefore provided in the case of the firms of certified public
accountants designated by Landlord and Tenant. Each firm of certified public
accountants shall certify to Landlord and Tenant whether or not, in the
previous three (3) years, such firm or any individual certified public
accountant in such firm shall have (x) been retained by Landlord or Tenant or a
related or affiliated entity of either for the preceding five (5) years and/or
(y) been involved in an adversarial arbitration or litigation proceeding with
either Landlord or Tenant. Landlord and Tenant reserve the right to reject any
firm of certified public accountants for good cause within ten (10) Business
Days after receipt of the certification provided above.

          Section
27.5 Anything in this Article 27 to the contrary notwithstanding,
under no circumstances shall the Tax Payment for any Tax Year or Tenant’s
Operating Payment for any Operating Year be less than zero, nor shall the
Rental payable under this Lease be less than the Fixed Rent set forth in this
Lease.

          Section
27.6 The obligations of Landlord and Tenant under the provisions of this Article
27 shall survive the expiration or sooner termination of this Lease. In
determining the amount of Tenant’s Operating Payment or the Tax Payment for the
Operating Year or Tax Year in which the Term shall expire, such payments shall
be prorated based on the number of days of the Term which fall within such
Operating Year or Tax Year. Any payments due under such Operating Statement
shall be payable within twenty (20) days after such statement is sent to
Tenant.

ARTICLE 28

SERVICES

          Section
28.1 Landlord shall provide passenger elevator service, servicing the
Building on Business Days from 8:00 a.m. to 6:00 p.m. and on Saturdays from
8:00 a.m.

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to 1:00 p.m. and have an elevator for passenger use subject to call at
all other times. In addition, Landlord shall provide one freight elevator, upon
Tenant’s prior request, on a non-exclusive basis with other tenants at the
Building, on all Business Days from 8:00 a.m. to 12:00 noon and 1:00 p.m. to
5:00 p.m. The two (2) freight elevator doorways on the westerly side of the
Premises (elevators number 17 and 18) may be enclosed with sheetrock (but not removed)
by Tenant, at Tenant’s sole cost and expense, provided such enclosure is
performed in compliance with any and all Requirements of Law. Notwithstanding
the foregoing, subject to Section 4.3, Landlord shall have the right at
any time during the Term to access such elevators and/or elevator shafts by
installing an access door at Landlord’s sole cost and expense. The use of all
elevators shall be subject to the Rules and Regulations. During Tenant’s
initial weekend move-in to the Premises and final weekend move-out upon the
expiration of the Term, Landlord shall not charge Tenant for overtime freight
elevator charges, but in no event to exceed thirty-two hours of free use in the
aggregate.

          Section
28.2 (A) Landlord, through the HVAC system, shall furnish heating,
mechanical ventilation, and cooling for the Premises in accordance with the
standards set forth in Schedule E attached hereto (the “HVAC Specifications”) on Business Days
from 8:00 a.m. to 6:00 p.m. and on Saturdays from 8:00 a.m. to 1 :00 p.m. At
other hours, such service shall be provided upon notice as provided below at
Landlord’s then customary charges therefor. All electrical energy used in
connection with the operation of the HVAC system shall be provided by Landlord
at Landlord’s sole cost and expense, provided, that notwithstanding the
foregoing, Tenant shall pay the cost of electricity used for compressor cooling
from the condenser water system during the heating season as provided in Schedule
E. The installation of the meter or meters to measure such electricity
shall be performed by Landlord at Landlord’s cost and expense. All such HVAC
service shall be provided in accordance with Landlord’s Rules and Regulations
in effect from time to time as provided under this Lease. The performance by
Landlord of its obligations under this Section 28.2 is subject to
Tenant’s compliance with the conditions of occupancy and connected load set
forth in Schedule E. Use of the Premises, or any part thereof, in a
manner exceeding the heating, ventilating and/or air-conditioning design
conditions (including occupancy and connected electrical load), or
rearrangement of partitioning which interferes with normal operation of the
heating, ventilating and/or air-conditioning in the Premises, may require changes
in the heating, ventilating and/or air-conditioning systems servicing the
Premises, in order to provide comfortable occupancy. Such changes, so
occasioned, shall be made by Tenant, at its expense, as Alterations in
accordance with the provisions of Article 3 hereof, but only to the
extent permitted and upon the conditions set forth in Article 3 hereof.
Tenant shall draw and close the draperies or blinds for the windows of the
Premises whenever the HVAC system is in operation and the position of the sun
so requires and shall at all times cooperate fully with Landlord and abide by
all of the reasonable regulations and requirements which Landlord may prescribe
for the proper functioning and protection of the HVAC system. Notwithstanding
the foregoing, Landlord will have no obligation to comply with the foregoing
HVAC standards if an energy conservation or any other Requirement of Law shall
provide for any reduction in operations below the standards set forth above in
which case the HVAC system shall be operated so as to provide reduced service
in accordance

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with such Requirement of Law.

          (B) Tenant
may install auxiliary or supplemental air conditioning equipment subject to the
terms and conditions herein. In such event, Landlord shall supply up to 62 tons
of condenser water to a location to be determined by Landlord in the core of
the Building, and shall have the right, at Tenant’s cost, to install a meter or
meters to measure Tenant’s use of electricity in the operation of such
supplemental system. Tenant shall have the option to increase the amount of
condenser water supplied by Landlord to an aggregate amount of up to 75 tons,
to be exercised by written notice from Tenant to Landlord on or before December
31, 2000, time being of the essence. Tenant shall pay to Landlord, at
Landlord’s then established rates therefor, the cost of such condenser water on
a connected basis based upon available capacity and electricity as shown on
such meter or meters, which charges to Tenant shall be payable upon demand and
shall constitute Additional Rent. Landlord’s current established rate for
condenser water is $500 per ton per annum. Landlord’s then established rate for
condenser water shall not be increased from the current established rate at a
rate exceeding, in the aggregate for all increases from the Commencement Date,
the lesser of actual cost increases and the rate of increase in the Consumer
Price Index during the period from the date of publication most immediately
preceding the Commencement Date through and including the date of such
increase. Tenant covenants that its use of any such supplemental air
conditioning system at all times shall be in compliance with all applicable
Requirements of Law with respect to the days or hours of operation of such
system, or the volume or capacity of such system, as may be imposed from time
to time by all Governmental Authorities and instrumentalities having
jurisdiction over the same. To the extent that Tenant’s supplemental air
conditioning system is an air cooled system, Landlord shall, subject to
Requirements of Law and provided there shall be no interference with the use
and occupancy of other tenants, at Tenant’s sole cost and expense, allow Tenant
to install vents out of the easterly wall of the Building at a location to be
determined by Landlord in its sole discretion.

          Section
28.3 (A) Except as otherwise specifically provided herein, Landlord shall
not be required to furnish any services under this Article 28 during
periods (“Overtime Periods”)
other than the hours of 8:00 a.m. to 6:00 p.m. on Business Days (except HVAC
services which shall be provided pursuant to Section 28.2(A)) unless
Landlord has received advance notice from Tenant (which may be given verbally
by telephone together with an additional notice by facsimile to the Agent)
requesting such services, provided that such notice must be given prior to 2:00
p.m. for services during the evening of the same Business Day and 2:00 p.m. of
the preceding Business Day if such Overtime Period is requested for a day other
than a Business Day. Landlord shall have no liability of any kind nor shall
Tenant be entitled to any abatement of rent nor shall this Lease in any respect
be impaired for any failure to deliver any HVAC or other services during Overtime
Periods. The Fixed Rent and Escalation Rent do not include or reflect any
charge to Tenant for any services during any Overtime Periods (other than HVAC
services, 8:00 a.m. to 1:00 p.m. on Saturdays, the cost of which shall be
deemed included in Fixed Rent and Escalation Rent). If Landlord provides any of
such services during an Overtime Period, Tenant will pay Landlord’s then
established customary charges therefor.

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          Section
28.4 (A) Landlord shall cause the Premises (excluding any portions thereof
used for the storage or preparation, service or consumption of food or
beverages) to be cleaned on Business Days (but in no event prior to 6:00 p.m.),
in accordance with the standards set forth in Schedule F attached hereto
and made a part hereof. Tenant shall pay to Landlord as Additional Rent upon
demand, Landlord’s charges for cleaning work in the Premises or the Building
required because of (i) misuse or neglect on the part of Tenant or its agents,
employees, contractors, licenses or invitees, (ii) use of portions of the
Premises for the storage, preparation, or consumption of food or beverages in
excess of amounts reasonably created by consumption of food by employees of
tenants in similar buildings in the Borough of Manhattan, reproduction, data
processing or computer operations, private lavatories or toilets or other
special purposes requiring greater or more difficult cleaning work than other
areas, (iii) interior glass surfaces, (iv) non-building standard materials or
finishes installed by Tenant or at its request, (v) increases in frequency or
scope in any of the items set forth in Schedule F as shall have been
requested by Tenant, (vi) removal from the Premises or the Building of any
rubbish or refuse in excess of that ordinarily accumulated in business office
occupancy or at times other than Landlord’s standard cleaning times, and (vii)
the use of the Premises by Tenant after hours. If any additional cleaning of
the Premises is to be done by Tenant, it shall be done at Tenant’s sole cost
and expense in a manner reasonably satisfactory to Landlord, and only persons
designated or approved by Landlord shall be permitted to enter the Premises or
the Building for such purpose. Tenant shall, at its sole cost and expense,
arrange for the removal of all of Tenant’s refuse and rubbish in excess of that
ordinarily accumulated by a typical commercial occupant from the Premises and
the Building by the contractor designated by Landlord. Tenant, at Tenant’s sole
cost and expense, shall cause all portions of the Premises used for the
storage, preparation, service or consumption of food or beverages to be cleaned
daily in a manner reasonably satisfactory to Landlord, and to be exterminated
against infestation by vermin, rodents or roaches regularly and, in addition,
whenever there shall be evidence of any infestation Tenant shall employ an
exterminator (which exterminator shall comply with all Requirements of Law),
first approved by Landlord.

          (B)
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
28.4.

          Section
28.5 Tenant shall be responsible, at its sole cost and expense, for the
installation of a “sprinkler system” in the Premises which complies with all
applicable Requirements of Law. If the “sprinkler system” installed in the Building
or any of its appurtenances shall be damaged or injured or not be in proper
working order by reason of any act or omission of Tenant, or Tenant’s agents,
servants, employees, licensees or visitors, Tenant shall restore the same to
good working condition, at Tenant’s sole cost and expense; and if the New York
Board of Fire Underwriters or the New York Fire Insurance Rating Organization
or any Governmental Authority shall require or recommend that any changes,
modifications, alterations or additional sprinkler heads or other equipment be
made or supplied by reason of Tenant’s business, or the location of the

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partitions, trade fixtures, or other contents of the Premises, Tenant
shall, at Tenant’s sole cost and expense, promptly make and supply such
changes, modifications, alterations, additional sprinkler heads or other
equipment. Tenant acknowledges and agrees that Tenant is responsible that its
“sprinkler system” conforms with all Requirements of Law. Tenant shall be
responsible to maintain its “sprinkler system” as an Independent System
pursuant to Section 4.1 in addition to its obligations set forth herein.

          Section
28.6 Landlord shall provide hot and cold water to the Premises for ordinary
drinking, cleaning and lavatory purposes. Landlord shall provide sufficient
quantities of water for the sprinkler system serving the Premises in accordance
with any applicable Requirements of Law, at Landlord’s then established rates
therefor. If Tenant requires, uses or consumes water for any purpose in
addition to ordinary drinking, cleaning and lavatory purposes and for the
sprinkler system serving the Premises in excess of amounts customarily
required, used or consumed by similar tenants in similar buildings in the
Borough of Manhattan, the cost of the water so used (inclusive of Landlord’s
administration charges, sewer rents, taxes and other charges) shall be billed
to Tenant based upon Landlord’s estimate of the usage which would be shown by
the meter. The bill rendered by Landlord for the charges set forth above shall
be based on Tenant’s consumption and shall be payable by Tenant as Additional
Rent.

          Section
28.7 Landlord reserves the right, on not less than five (5) Business Days
notice to Tenant (or such shorter period as may be necessary or practicable),
to stop service of any of the Building Systems or other facilities in the
Building when necessary, by reason of accident or emergency, or for repairs,
additions, alterations, replacements or improvements which in Landlord’s sole judgment
are desirable or necessary to be made, until said repairs, alterations,
replacements or improvements shall have been completed (which repairs,
alterations and improvements shall be performed in accordance with Section
4.3). Landlord shall have no responsibility or liability for interruption,
curtailment or failure to supply service of any of the Building Systems or
other facilities, when prevented by Unavoidable Delays or by any Requirement of
Law or due to the exercise of its right to stop service as provided in this Section
28.7. The exercise of such right or such failure by Landlord shall not
constitute an actual or constructive eviction, in whole or in part, or entitle
Tenant to any compensation or to any abatement or diminution of Rental, or relieve
Tenant from any of its obligations under this Lease, or impose any liability
upon Landlord or its agents by reason of inconvenience or annoyance to Tenant,
or injury to or interruption of Tenant’s business, or otherwise. Except as
expressly provided in this Lease, Landlord shall not be required to furnish any
services to the Premises.

ARTICLE 29

PARTNERSHIP TENANT

If Tenant is a partnership (or is comprised of two (2) or more persons,
individually or as co-partners of a partnership) or if Tenant’s interest in
this Lease shall be assigned to a partnership (or to two (2) or more persons,
individually or as co-partners of a partnership) (any such partnership and such
persons are referred to in this Article 29 as

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“Partnership Tenant”),
the following provisions shall apply to such Partnership Tenant: (a) the
liability of each of the general partners comprising Partnership Tenant shall
be joint and several; (b) each of the general partners comprising Partnership
Tenant hereby consents in advance to, and agrees to be bound by (i) any written
instrument which may hereafter be executed by Partnership Tenant or any
successor partnership, changing, modifying, extending or discharging this
Lease, in whole or in part, or surrendering all or any part of the Premises to
Landlord, and (ii) any notices, demands, requests or other communications which
may hereafter be given by Partnership Tenant or by any of the general partners
comprising Partnership Tenant; (c) any bills, statements, notices, demands,
requests or other communications given or rendered to Partnership Tenant or to
any of such general partners shall be binding upon Partnership Tenant and all
such general partners; (d) if Partnership Tenant shall admit new partners, all
of such new partners shall, by their admission to Partnership Tenant, be deemed
to have assumed joint and several liability for the performance of all of the
terms, covenants and conditions of this Lease on Tenant’s part to be observed
and performed after the date of such admission and for so long as such general
partners remain general partners of the Partnership Tenant; and (e) Partnership
Tenant shall give prompt notice to Landlord of the admission of any such new
partners, and upon demand of Landlord, shall cause each such new partner to
execute and deliver to Landlord an agreement in form satisfactory to Landlord
in all respects, wherein each such new partner shall assume joint and several
liability for the performance of all the terms, covenants and conditions of
this Lease on Tenant’s part to be observed and performed as provided in clause
(d) above (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 clause (d) above). The
technical dissolution of a Partnership Tenant (or of any partnerships
constituting Tenant) by reason of the death, retirement, resignation,
bankruptcy, or adjudication of incompetency of one or more partners, shall not
affect the ongoing liability hereunder of all general partners of such
Partnership (including any such dying, retiring, resigning, insolvent or
incompetent partners) as provided in this Lease.

ARTICLE 30

VAULT SPACE

          Notwithstanding
anything contained in this Lease or indicated on any sketch, blueprint or plan,
any vaults, vault space or other space outside the boundaries of the Real
Property are not included in the Premises. Landlord makes no representation as
to the location of the boundaries of the Real Property. All vaults and vault
space and all other space outside the boundaries of the Real Property which
Tenant may be permitted to use or occupy are to be used or occupied under a
revocable license, and if any such license shall be revoked, or if the amount of
such space shall be diminished or required by any Governmental Authority or by
any public utility company, such revocation, diminution or requisition shall
not constitute actual or constructive eviction, in whole or in part, or entitle
Tenant to any abatement or diminution of Rental, or relieve Tenant from any of
its obligations under this Lease, or impose any liability upon Landlord. Any
fee, tax or charge imposed by any Governmental Authority for any such vaults,
vault space or other space occupied by Tenant shall be paid by Tenant.

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ARTICLE 31

SECURITY DEPOSIT

          Section
31.1 Tenant concurrently with the execution and delivery of this Lease by
Landlord and Tenant herewith shall deposit with Landlord the sum of $1,000,000
as security for the full and faithful performance and observance by Tenant of
Tenant’s covenants and obligations under this Lease. Tenant shall be obligated
to deposit with Landlord the additional sum of $1,000,000 on or before thirty
(30) days after the Commencement Date, time being of the essence, so that the
aggregate sum of $2,000,0000 shall be deposited with Landlord as security for
the full and faithful performance and observance by Tenant of Tenant’s
covenants and obligations under this Lease. Landlord shall deposit each such
sum upon receipt into an interest bearing money market account, in Chase
Manhattan Bank (or any successor financial institution selected by Landlord
which is a member of the New York Clearing House Association). Provided no
Event of Default has occurred and is continuing, the interest earned on such
account shall be remitted annually to Tenant.

          Section
31.2 In lieu of the cash security deposit provided for in Section 31.1,
Tenant may at any time during the Term deliver to Landlord and shall
thereafter, except as otherwise provided herein, maintain in effect at all
times during the Term, a clean, stand-by, irrevocable letter of credit, in form
and substance satisfactory to Landlord in the amount of the security required
pursuant to this Article 31 issued by a banking corporation reasonably
satisfactory to Landlord and having its principal place of business or its duly
licensed branch or agency in the City of New York, and, if the issuing bank is
not a member of the New York Clearing House Association, confirmed by Citibank,
N.A. or another bank reasonably satisfactory to Landlord which is a member of
the New York Clearing House Association, which letter of credit may be
presented for payment in the City of New York. Such letter of credit shall have
an expiration date no earlier than the first anniversary of the date of
issuance thereof and shall be automatically renewed from year to year unless
terminated by the issuer thereof by notice to Landlord given by certified or
registered mail, return receipt requested not less than forty-five (45) days
prior to the expiration thereof. Except as otherwise provided in this Article
31, Tenant shall, throughout the Term deliver to Landlord, in the event of
the termination of any such letter of credit, replacement letters of credit
acceptable to Landlord in lieu thereof (each such letter of credit and each
such extension or replacement thereof, as the case may be, is hereinafter
referred to as a “Security Letter”)
no later than forty-five (45) days prior to the expiration date of the
preceding Security Letter. The term of each such Security Letter shall be not
less than one (1) year and shall be automatically renewable from year to year
as aforesaid. If Tenant shall fail to obtain any replacements of a Security
Letter within the time limits set forth in this Section 31.2, Landlord
may draw down the full amount of the existing Security Letter and retain the
same as cash security hereunder.

          Section
31.3 In the event Tenant defaults in respect of any of the terms,
provisions, covenants and conditions of this Lease, beyond any applicable grace
period, including, but not limited to, the payment of Fixed Rent, Escalation
Rent and/or Additional

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Rent, Landlord may use, apply or retain the whole or any part of the
security so deposited to the extent required for the payment of any Fixed Rent,
Escalation Rent and Additional Rent or any other sum as to which Tenant is in
default or for any sum which Landlord may expend or may be required to expend by
reason of Tenant’s default in respect of any of the terms, provisions,
covenants, and conditions of this Lease, including but not limited to, any
damages or deficiency accrued before or after summary proceedings or other
re-entry by Landlord. To insure that Landlord may utilize the security
represented by the Security Letter in the manner, for the purposes, and to the
extent provided in this Article 31, each Security Letter shall provide
that the full amount thereof may be drawn down by Landlord upon presentation to
the issuing or confirming bank of Landlord’s sight draft drawn on the issuing
bank.

          Section
31.4 In the event Landlord applies or retains any portion or all of the
security delivered hereunder, Tenant shall forthwith restore the amount so
applied or retained so that at all times the amount deposited shall be not less
than the security required under the provisions of this Article 31.

          Section
31.5 If Tenant shall fully and faithfully comply with all of Tenant’s
covenants and obligations under this Lease, the security or any balance thereof
to which Tenant is entitled (and interest earned thereon, if any, not
previously remitted to Tenant) shall be returned or paid over to Tenant
reasonably promptly after, as applicable, (x) delivery of a Security Letter
meeting the requirements of this Article 31 or (y) the date fixed as the
end of the Term and after delivery to Landlord of entire possession of the
Premises. 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 Real Property to a vendee, transferee or lessee, Landlord shall have the
right to transfer the unapplied part of the security and the interest thereon,
if any, to which Tenant is entitled, or any interest it may have in the
Security Letter, as the case may be, 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 same. The provisions of the preceding sentence shall
apply to every 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 or any interest it may have in the Security
Letter, as the case may be, to any vendee, transferee or lessee of the
Building, and shall thereupon be relieved of any liability with respect
thereto. In the event of a sale of the Building, Landlord shall have the right
to require Tenant to deliver a replacement Security Letter naming the new
Landlord as beneficiary and, if Tenant shall fail to deliver the same within
thirty (30) days after notice, to draw down the existing Security Letter and
retain the proceeds as cash security hereunder until a replacement Security
Letter is delivered. Tenant shall not assign or encumber or attempt to assign
or encumber the monies deposited herein as security and neither Landlord nor
its successors or assigns shall be bound by any such assignment, encumbrance,
or attempted assignment or encumbrance.

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          Section
31.6 Provided that no Event of Default shall have occurred and then be
continuing under this Lease, (a) on the third (3rd) anniversary of the
Commencement Date, Tenant shall be permitted to reduce the amount of said
security to $1,000,000.00 in the event Tenant has a Net Worth equal or greater
than $100,000,000 and (b) on the tenth (10th) anniversary of the Commencement
Date, the security requirement shall be eliminated and of no further force and
effect. If the security then held by Landlord is in cash, each such reduction
shall be accomplished by means of a cash payment to Tenant from Landlord. If
the security then held by Landlord is in the form of a Security Letter,
Landlord will accept a Security Letter in the proper reduced amount in exchange
for the existing Security Letter, or will enter into an amendment of the
Security Letter, reasonably acceptable to Landlord, reducing the amount thereof
to the proper reduced amount or, if applicable, landlord shall return the
Security Letter to Tenant.

ARTICLE 32

CAPTIONS

          The
captions, table of contents, headings and titles in this Lease are inserted
only as a matter of convenience and for reference and in no way define, limit
or describe the scope of this Lease nor the intent of any provision thereof.

ARTICLE 33

PARTIES BOUND

          Except as
otherwise expressly provided in this Lease, the covenants, conditions and
agreements contained in this Lease shall bind and inure to the benefit of
Landlord and Tenant and their respective permitted legal representatives,
successors, and assigns; provided, however, that (a) no violation of the
provisions of Article 12 hereof shall operate to vest any rights in any
successor or assignee of Tenant and (b) the provisions of this Article 33
shall not be construed as modifying the conditions of limitation contained in Article
16 hereof.

ARTICLE 34

BROKER

          Tenant
represents and warrants to Landlord that it has not dealt with any broker or
Person in connection with this Lease other than Insignia/ESG (the “Broker”). Landlord represents and
warrants to Tenant that it has not dealt with any broker or Person in
connection with this Lease other than the Broker. In executing and delivering
this Lease, the parties have relied upon the foregoing representations and
warranties. Tenant and Landlord shall indemnify and hold each other harmless
from and against any and all claims for commissions, fees, reimbursement for
expenses, or other compensation by any Person other than the Broker who shall
claim to have dealt with the indemnifying party in connection with this Lease
and for any and all costs incurred by indemnified party in

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connection with such claims, including, without limitation, attorneys’
fees and disbursements. Landlord shall compensate the Broker in accordance with
a separate agreement or agreements between Landlord and the Broker. This
provision shall survive the expiration or earlier termination of this Lease.

ARTICLE 35

INDEMNITY

          Section
35.1 (A) Tenant shall not do or permit any act or thing to be done upon the
Premises which may subject any Indemnitee to any liability or responsibility
for injury, damages to persons or property or to any liability by reason of any
violation of any Requirement of Law, but shall exercise such control over the
Premises as to fully protect the Indemnitees against any such liability. Tenant
shall indemnify and save the Indemnitees and each of them harmless from and
against (i) all claims of whatever nature against the Indemnitees arising from
the conduct or management of the Premises or of any business therein, or any
work or thing whatsoever done, or any condition created in or about the
Premises during the Term or any act, omission or negligence of Tenant, its
contractors, licensees, agents, servants, employees, invitees or visitors, (ii)
all claims against the Indemnitees arising from any accident, injury, damage or
other occurrences whatsoever caused to any person or to the property of any
person and occurring during the Term in or about the Premises, (iii) all claims
against the Indemnitees arising from any accident, injury or damage occurring
outside of the Premises but anywhere within or about the Real Property, where
such accident, injury of damage results or is claimed to have resulted from an
act, omission or negligence of Tenant or Tenant’s agents, employees, invitees
or visitors, and (iv) any breach, violation or nonperformance of any covenant,
condition or agreement in this Lease set forth and contained on the part of
Tenant to be fulfilled, kept, observed and performed. This indemnity and hold harmless
agreement shall include without limitation indemnity from and against any and
all liability, fines, suits, demands, costs and expenses of any kind or nature
(including, without limitation, reasonable attorneys’ fees and disbursements)
incurred in or in connection with any such claim or proceeding brought thereon,
and the defense thereof. If any claim, action or proceeding is made or brought
against any Indemnitee, which claim, action or proceeding the Tenant shall be
obligated to indemnify such Indemnitee against, pursuant to the terms of this
Lease, then, upon demand by the Indemnitee, the Tenant, at its sole expense,
shall resist or defend such claim, action or proceeding in the Indemnitee’s
name, if necessary, by such attorneys as the Indemnitee shall approve. The
provisions of this Section 35.1(A) shall survive the expiration or
earlier termination of this Lease.

          (B)
Landlord shall indemnify and save Tenant harmless from and against any and all
claims (other than those for which liability is waived or limited by the
express provisions of this Lease) resulting from any accident, injury, or
damage in or upon the Real Property to property or persons (i) due to any gross
negligence of Landlord, its agents, licensees, employees, invitees or contractors,
to the extent of collected insurance proceeds, or (ii) due to any intentional
misconduct of Landlord, its agents, employees or contractors, provided in each
case that Tenant first obtains a final, nonappealable order of a court of
competent jurisdiction confirming that the actions or inactions of Landlord,

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its agents, employees or contractors constituted gross negligence or
intentional misconduct as the case may be. This indemnity and hold harmless
agreement shall include without limitation indemnity from and against any and
all liability, fines, suits, demands, costs and expenses of any kind or nature
(including, without limitation, reasonable attorneys’ fees and disbursements)
incurred in or in connection with any such claim brought thereon, and the
defense thereof. The provisions of this Section 35.1(B) shall survive
the expiration or earlier termination of this Lease.

ARTICLE 36

ADJACENT EXCAVATION-SHORING

          If an
excavation shall be made upon land adjacent to the Premises, or shall be
authorized to be made, Tenant shall, upon reasonable advance notice, afford to
Landlord or any Governmental Authority causing or authorized to cause such
excavation, license to enter upon the Premises for the purpose of doing such
work as Landlord or such Governmental Authority shall deem, in its or their
sole discretion, necessary to preserve the wall of the Building from injury or
damage and to support the same by proper foundations without any claim for
damages or indemnity against Landlord, or diminution or abatement of Rental
provided that Tenant shall continue to have access to the Premises and the
Building.

ARTICLE 37

MISCELLANEOUS

          Section
37.1 This Lease is offered for signature by Tenant and it is understood
that this Lease shall not be binding upon Landlord or Tenant or impose any
rights or obligations upon Landlord or Tenant unless and until Landlord and
Tenant shall have executed and delivered a fully executed copy of this Lease to
each other.

          Section
37.2 The obligations of Landlord under this Lease shall not be binding upon
Landlord named herein after the sale, conveyance, assignment or transfer by
such Landlord (or upon any subsequent landlord after the sale, conveyance,
assignment or transfer by such subsequent landlord) of its interest in the
Building or the Real Property, as the case may be, and in the event of any such
sale, conveyance, assignment or transfer, Landlord shall be and hereby is
entirely freed and relieved of all covenants and obligations of Landlord hereunder;
provided, however, that Landlord shall not be released from its obligation to
fund the Landlord’s Contribution pursuant to Article 41 unless and until
the purchaser, assignee or transferee with respect to such sale, conveyance,
assignment or transfer assumes the obligations of Landlord under the Lease.
Neither Landlord nor any of the direct or indirect partners, shareholders,
directors or officers of Landlord (collectively, the “Parties”) shall be personally liable
for the performance of Landlord’s obligations under this Lease. Tenant shall
look solely to Landlord to enforce Landlord’s obligations hereunder and shall
not seek any damages against any of the Parties. Prior to any such sale,
conveyance, assignment or transfer, the liability of Landlord for Landlord’s
obligations under this Lease shall be limited to Landlord’s interest in the
Real Property and Tenant shall not look to any other property or assets of
Landlord

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or the property or assets of any of the Parties in seeking either to enforce
Landlord’s obligations under this Lease or to satisfy a judgment for Landlord’s
failure to perform such obligations. After any such sale, conveyance,
assignment or transfer, to the extent that Landlord has any liability at all,
the liability of Landlord for such obligations shall be limited to the proceeds
of such transfer received by Landlord.

          Section
37.3 Notwithstanding anything contained in this Lease to the contrary, all
amounts payable by Tenant to or on behalf of Landlord under this Lease, whether
or not expressly denominated Fixed Rent, Escalation Rent, Additional Rent or
Rental, shall constitute rent for all purposes of this Lease, for the purpose
of any and all remedies that Landlord has available at law or in equity, and
for the purposes of Section 502(b)(7) of the Bankruptcy Code.

          Section
37.4 This Lease shall not be recorded. The recordation of this Lease or any
memorandum thereof shall constitute a default by Tenant under the provisions of
this Lease. The provisions of this Section 37.4 shall survive the
expiration or earlier termination of this Lease.

          Section
37.5 Tenant hereby waives any claim against Landlord which Tenant may have
based upon any assertion that Landlord has unreasonably withheld or delayed any
consent or approval requested by Tenant, and Tenant agrees that its sole remedy
in connection therewith shall be an action or proceeding for specific
performance, injunction or declaratory judgment. In the event there is a final
determination in any such proceeding (after exhaustion of any appeals) that
Landlord unreasonably withheld or delayed its consent in violation of any
provision in this Lease pursuant to which Landlord has agreed not to
unreasonably withhold or delay its consent, the requested consent or approval
shall be deemed to have been granted, however, Landlord shall have no liability
of any kind to Tenant for its refusal or failure to give such consent or
approval except for Landlord’s actual bad faith and provided the following
shall occur: (a) Tenant shall give Landlord written notice (the “Damages Notice”) no later than sixty
(60) days after Landlord shall have refused to grant its consent, time being of
the essence, which notice shall specify (i) the reason that Tenant believes
that Landlord’s failure to give such consent is unreasonable, (ii) the grounds,
based upon Tenant’s available knowledge, that Tenant believes Landlord’s
decision was caused by its bad faith, and (iii) the amount of damages Tenant
believes it incurred by reason of Landlord’s decision; failure by Tenant to
deliver the Damages Notice within such sixty (60) day time period shall
automatically be deemed a waiver of any right to seek any damages against
Landlord for the failure or refusal to grant such consent; (b) Tenant shall
commence suit against Landlord in a court of competent jurisdiction in the
Borough of Manhattan in the City of New York no later than nine (9) months
after delivery of the Damages Notice; and (c) there shall be a final
determination in such court (after exhaustion of any appeals) that Landlord’s
refusal to grant such consent was caused by Landlord’s actual bad faith.
Landlord’s liability will be limited to actual compensatory damages (and in no
event shall Landlord be liable for consequential damages or punitive damages).
Without limitation of the scope of Landlord’s discretion, no decision of
Landlord will be deemed to result from bad faith if such decision requires the
consent of any Mortgagee or Lessor, and the Mortgagee or

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Lessor refuses to give, withholds, delays or conditions such consent.
If any action or proceeding for damages against Landlord under this Section
37.5 shall be commenced against Landlord and there shall be a final
determination by a court of competent jurisdiction on the merits (after
exhaustion of any appeals), then the prevailing party shall be entitled to be
reimbursed within twenty (20) days after demand by the other party for
reasonable attorneys’ fees and disbursements incurred by such prevailing party
in connection with such action or proceeding.

          Section
37.6 All references in this Lease to the consent or approval of Landlord or
Agent shall be deemed to mean the written consent or approval of Landlord and
no consent or approval of Landlord shall be effective for any purpose unless
such consent or approval is given in advance and is set forth in a written
instrument executed by Landlord or Agent.

          Section
37.7 If Tenant shall fail to deliver vacant possession of the Premises in
the manner required hereunder on or prior to the expiration or earlier
termination of this Lease, such failure shall not be deemed to extend the Term
or renew this Lease and Tenant shall pay to Landlord promptly upon demand
therefor, (a) for the first month or any portion thereof during which Tenant
shall retain possession of the Premises after such expiration or early
termination, an amount equal to One Hundred Twenty-Five percent (125%) of the
product obtained by multiplying (i) one-twelfth (1/12) by (ii) the annual Fixed
Rent, Escalation Rent and Additional Rent then payable by Tenant pursuant to
the terms of this Lease, (b) for each of the second and third months or any
portion thereof during which Tenant shall retain possession of the Premises
after such expiration or early termination, an amount equal to One Hundred and
Fifty percent (150%) of the product obtained by multiplying (i) one-twelfth
(1/12) by (ii) the annual Fixed Rent, Escalation Rent and Additional Rent then
payable by Tenant pursuant to the terms of this Lease and (c) for each month or
any portion thereof thereafter during which Tenant shall retain possession of
the Premises after such expiration or early termination, an amount equal to One
Hundred Seventy-Five percent (175%) of the product obtained by multiplying (i)
one-twelfth (1/12) by (ii) the annual Fixed Rent, Escalation Rent and
Additional Rent then payable by Tenant pursuant to the terms of this Lease. The
provisions of this Section 37.7 shall not be deemed to limit or
constitute a waiver of any other rights or remedies provided herein or at law
or in equity. The provisions of this Section 37.7 shall survive the
expiration or earlier termination of this Lease.

          Section
37.8 This Lease contains the entire agreement between the parties with respect
to the subject matter hereof and all prior negotiations and agreements are
merged herein. No agreement hereafter made shall be effective to change,
modify, terminate, discharge or effect an abandonment of this Lease in whole or
in part unless such agreement is in writing, refers specifically to the
provisions of this Lease and is signed by the party against whom enforcement of
the change, modification, termination, discharge or abandonment is sought.

          Section
37.9 The submission of this Lease for examination, review and negotiation
does not constitute an offer to lease and this Lease shall be legally binding

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only upon execution hereof by Landlord and Tenant and delivery of an
executed counterpart thereof to each party.

          Section
37.10 Tenant shall not occupy any space in the Building (by assignment,
sublease or otherwise) other than the Premises, except with the prior written
consent of Landlord in each instance, except in the event that there is no
Comparable Space available in the Building.

          Section
37.11 Tenant acknowledges that it has no rights to any development rights,
“air rights” or comparable rights appurtenant to the Land or Building, 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 37.11
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 Building or the Land.

          Section
37.12 In addition to any remedies which Landlord may have under this Lease,
and without reducing or adversely affecting any Landlord’s rights and remedies
under Article 17 hereof, if there shall be a monetary default hereunder
by Tenant which shall not have been cured within the applicable grace period,
Landlord shall not be obligated to furnish to Tenant or the Premises any heat,
ventilation or air-conditioning services outside of 8:00 a.m. to 6:00 p.m. on
Business Days and from 8:00 a.m. to 1:00 p.m. on Saturdays, or any extra or
additional cleaning services; 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. Notwithstanding the foregoing, Landlord shall provide such overtime
services if, at the time of requesting such services, Tenant shall prepay to
Landlord the estimated costs for such services as reasonably determined by
Landlord.

          Section
37.13 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 circumstances 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. Except as expressly provided
to the contrary in this Lease, Tenant agrees that all disputes arising out of
or relating to this Lease shall be adjudicated in the State Courts for the
State of New York in New York County or in the Federal Courts for the South
District of New York. 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, regardless of
the number or gender in which they are used, shall be deemed to include

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any other number and any other gender as the context may require.

          Section
37.14 Landlord shall make a reasonable good faith effort to identify, test
for and remediate century date change and date handling deficiencies in the
Internal Components of Building Systems so that they will be Y2K Compliant,
provided, however, that Landlord makes no representations or warranties of any
kind or nature whatsoever that such efforts shall be successful. For the purposes
of this Section 37.13 “Internal
Components” shall mean any component or service (including
without limitation the Building Systems) that is located exclusively within the
Building and is entirely within Landlord’s control and “Y2K Compliant” shall mean any component
or service (including without limitation the Building Systems) that, provided
all other systems, components and services used with it shall properly exchange
accurate date data with it, (x) is capable of correctly and accurately processing,
providing and/or receiving date data from, into and between years 1999 and 2000
and beyond and (y) does not operate abnormally or inaccurately or cease to
operate as a result of the inability to correctly and accurately process,
provide and/or receive date data from, into and between years 1999 and 2000.

          Section
37.15 Tenant shall have the non-exclusive right (the “Plaque Right”) exercisable upon thirty
(30) days’ prior written notice to Landlord (the “Plaque Notice”) to erect one plaque (the “Plaque”) with Tenant’s name on the
exterior of the Building in a design, size, and material which, in Landlord’s
sole and absolute judgment, shall be consistent with the character and dignity
of the Building in the location and otherwise as specified in Schedule I
attached hereto. As an express condition precedent to the Plaque Right, at the
time Tenant proposes to commence erection of the Plaque and all times
thereafter (a) no Event of Default under any of the terms and conditions of
this Lease must have occurred and be continuing and (b) the named Tenant in
this Lease or any Related Entity thereof must be in actual occupancy of an
amount of space in the Building equal to at least 75,000 rentable square feet.
The Plaque shall be installed by Landlord, at the sole reasonable expense of
Tenant. Upon expiration or sooner termination of this Lease, Tenant shall
reimburse Landlord for the reasonable cost of removal of the Plaque, which
removal will be performed by Landlord, and for restoration of the site to its condition
prior to the installation of such Plaque. If Tenant assigns this Lease other
than pursuant to Section 12.4 hereof, this Section 37.15 shall,
automatically and without any further act by any party, be of no further force
or effect whatsoever.

ARTICLE 38

RENT CONTROL

          If at the
commencement of, or at any time or times during the Term, the Rental reserved
in this Lease shall not be fully collectible by reason of any Requirement of
Law, Tenant shall enter into such agreements and take such other steps as
Landlord may request and as may be legally permissible to permit Landlord to
collect the maximum rents which may from time to time during the continuance of
such legal rent restriction be legally permissible (and not in excess of the
amounts reserved therefor under this Lease). Upon the termination of such legal
rent restriction prior to the expiration of the Term, (a)

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the Rental shall become and thereafter be payable hereunder in
accordance with the amounts reserved in this Lease for the periods following
such termination and (b) Tenant shall pay to Landlord, if legally permissible,
an amount equal to (i) the items of Rental which would have been paid pursuant
to this Lease but for such legal rent restriction less (ii) the rents paid by
Tenant to Landlord during the period or periods such legal rent restriction was
in effect.

ARTICLE 39

LANDLORD’S RIGHT TO PERFORM TENANT’S OBLIGATIONS

          If Tenant
shall default in the observance or performance of any term or covenant on
Tenant’s part to be observed or performed under any of the terms and provisions
of this Lease, (i) Landlord may remedy such default for the account of Tenant,
immediately thereafter and without notice in case of emergency or if such
default shall subject Landlord to the risk of prosecution for a crime or
default under any Superior Lease or any Mortgage, or in any other case if
Tenant shall fail to remedy such default after Landlord shall have notified
Tenant of such default and the applicable grace period for curing such default
shall have expired, and (ii) if Landlord makes any expenditures or incurs any
obligations for the payment of money in connection with such default, including
without limitation, attorneys’ fees or disbursements in instituting,
prosecuting or defending any action or proceeding, such sums paid or
obligations incurred, with interest at the Applicable Rate from the date paid
or incurred, shall be deemed to be Additional Rent and shall be paid by Tenant
to Landlord upon rendition of a bill to Tenant therefor. The provisions of this
Article 39 shall survive the expiration or other termination of this
Lease.

ARTICLE 40

BUILDING DIRECTORY

          At the
request of Tenant, Landlord shall list in the building’s directory the name of
Tenant and any trade name under which Tenant has the right to operate. Tenant
shall have a number of listings in the building’s directory equal to Tenant’s
Operating Share of the total number of listing spaces/slots in the building’s
directory.

ARTICLE 41

LANDLORD’S CONTRIBUTION

          Section
41.1 (A) (i) Subject to the terms and conditions set forth below, Landlord
shall reimburse Tenant up to a maximum amount of $3,600,000.00 (“Landlord’s Contribution”) for the costs
of labor and materials and other related costs paid and incurred by Tenant in
connection with the Initial Alterations. In the event that the cost and expense
of all such items shall exceed the amount of the Landlord’s Contribution,
Tenant shall be entirely responsible for such excess. If Tenant does not use all
or any part of the Landlord’s Contribution for or with respect to Initial
Alterations or other permitted expenditures under this Article 41, then
Tenant may apply the balance against Fixed Rent in accordance with this Section
41.1. If the amount of the Landlord’s Contribution that is applied to Fixed
Rent (a) is equal to or less than two (2) months’ Fixed Rent, then such

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credit shall apply within twelve (12) months after the Abatement Period
as designated by Tenant to Landlord in writing and (b) exceeds two (2) months’
Fixed Rent, then (i) the amount equal to two (2) months’ Fixed Rent shall apply
within twelve (12) months following the Abatement Period as designated by
Tenant to Landlord in writing and (ii) the amount in excess of two months’ Fixed
Rent shall apply to any month(s) determined by Landlord in its sole discretion
after twelve (12) months after the Abatement Period and prior to the third
(3rd) anniversary of the Rent Commencement Date.

                    (ii)
Prior to the commencement of the Initial Alterations, as a condition to
Landlord’s obligation to provide the Landlord’s Contribution, Tenant shall be
required to provide to Landlord a certificate in form reasonably satisfactory
to Landlord from an officer of Tenant certifying the total estimated cost of
the Initial Alterations and providing a certification of Tenant’s general
contractor, setting forth the total cost of the Initial Alterations and
including a trade breakdown evidencing the total cost of the Initial
Alterations.

          (B)
Disbursements of the Landlord’s Contribution shall be made in accordance with
this Section 41.1(B). Landlord shall disburse from time to time, but not
more often than once in any calendar month, within ten (10) Business Days after
receipt of Tenant’s request therefor, that portion of Landlord’s Contribution
equal to the amount set forth in Tenant’s requisition (subject to the
provisions of this Article 41); provided however, that no advance shall
be made if, and for so long as, Tenant shall be in default beyond applicable
notice and grace periods under this Lease. No advance shall be made until
Landlord has received a request therefor from Tenant and Tenant has submitted
the following to Landlord:

                    (i)
A certificate signed by Tenant and Tenant’s architect dated not more than ten (10) days prior to such
request setting forth (a) an itemized
account of the sums paid by Tenant for amounts justly due to all contractors, subcontractors, materialmen,
engineers, architects and other persons
who have rendered services or furnished materials in connection with the Initial Alterations, (b) that the
work described in the certificate has
been completed substantially in accordance with the final plans therefor previously approved by Landlord
(this statement need not be made by
Tenant, only by Tenant’s architect), (c) that Tenant has not received notice of the filing with respect
to the Premises or the Building or any
part thereof or any improvements thereon, any vendor’s, mechanic’s, laborer’s, materialmen’s or other like liens
arising out of Initial Alterations
which has not been discharged of record, and (d) that Tenant has
complied with all of the conditions set
forth in this Lease applicable to Alterations,
including without limitation the requirement that Tenant comply
with Requirements of Law (statements
(c) and (d) need not be made by
Tenant’s architect, only by Tenant);

                    (ii)
Partial lien waivers, paid receipts or such other proof of payment as Landlord shall reasonably require for all
work done and materials supplied with
respect to any prior requisitions for which Tenant previously applied for payment; and

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                              (iii)
a statement from the architect setting forth the total remaining cost of the
Initial Alterations to be performed, including without limitation, an
itemization of any additional costs not theretofore disclosed to Landlord.

          Section
41.2 Upon completion of the Initial
Alterations, Tenant shall deliver to Landlord (i) a certificate signed by
Tenant’s architect and an officer of Tenant certifying that the Initial
Alterations have been substantially completed in accordance with the approved
plans and specifications, (ii) all Building Department sign-offs, inspection
certificates and any and all permits required to be issued by any Governmental
Authority having jurisdiction thereover and (iii) a general release from all
contractors and subcontractors performing Initial Alterations releasing
Landlord and Tenant from any and all liability for any work or materials.

          Section
41.3 Notwithstanding anything to
the contrary contained in this Article 41, if, at the time any payment
by Landlord to Tenant of all or any portion of Landlord’s Contribution is
required to be made and an Event of Default has occurred, then Landlord may,
provided it gives written notice to Tenant, offset the amount of any arrearages
against the payment then due from Landlord hereunder.

          Section 41.4 Landlord shall be permitted to retain from each
disbursement under this Article 41 an amount equal to ten percent (10%)
of the amount requested to be disbursed by Tenant in the event Tenant’s
application does not reflect a ten percent (10%) retainage from contractors and
materialmen. The aggregate amount of the retainages held by Landlord (if any)
shall be paid by Landlord to Tenant upon completion of the Initial Alterations
and upon receipt by Landlord from Tenant of the items set forth in Section
41.2(i), (ii), and (iii).

ARTICLE 42

EXTENSION OF TERM

          Section
42.1 (A) Subject to the provisions of Section 42.4,
Tenant, at Tenant’s sole option, shall have one (1) extension option of five
(5) years (the “Extension Option”) covering either
(x) the entire Premises or (y) portions of the Premises consisting of full
floors only and in no event less than one full floor (the “Extension Space”). To the extent applicable, contiguous full
floors must be included as part of the Extension Space before non-contiguous
full floors can be included as part of the Extension Space. The term of the
Extension Option shall commence on the day immediately succeeding the Fixed
Expiration Date (the “Extension Term Commencement
Date”) and end on the last day of the calendar month immediately preceding
the month in which occurs the fifth anniversary of the Extension Term
Commencement Date (such additional term being the “Extension
Term”) provided that:

                              (i) Not later than the date
which is eighteen (18) months prior to the Fixed Expiration Date and not
earlier than the date which is two (2) years prior to the Fixed Expiration
Date, Tenant shall send to Landlord a written request (the “Extension

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Request”) asking Landlord to set forth Landlord’s estimate of the Fixed Rent
for the Extension Term on a rentable square foot basis in the event Tenant
exercises the Extension Option and indicating the Extension Space that would be
covered by the Extension Option. After receipt of the Extension Request,
Landlord shall provide its estimate of Fixed Rent for the Extension Term to
Tenant by notice (the “Rent Determination
Notice”) in writing no later than the date which is fifteen (15)
months prior to the Fixed Expiration Date. Tenant must give Landlord written
notice (the “Extension Notice”)
of its election to exercise the Extension Option and whether or not Tenant
disputes Landlord’s determination of the Fixed Rent for the Extension Term by not
later than the date which is one year prior to the Fixed Expiration Date. Time
is of the essence for all of such dates set forth in this Section 42.1(A)(i).
If Tenant does not timely send an Extension Request or Extension Notice
pursuant to the provisions of this Section 42.1, this Article 42
shall be null, void and of no force or effect and shall be deemed deleted from
this Lease;

                              (ii) Tenant’s Extension
Option, at Landlord’s sole option, shall be inapplicable, null, void and of no
further force and effect if, either as of the time of the giving of the
Extension Request or Extension Notice or as of the Extension Term Commencement
Date, any Event of Default under any of the terms and conditions of this Lease
shall have occurred and be continuing; and

                              (iii) Tenant
(and/or any Related Entity) shall, as of both the giving of the Extension
Notice and the Extension Term Commencement Date, (x) be in actual occupancy of
at least fifty (50%) percent of the Extension Space and (y) either (1) have met the Financial Requirements or (2) have delivered a
Financial Requirements LC to Landlord with respect to the Extension Space. If
in any successive year, Tenant’s Net Worth is equal to or greater than
$200,000,000, Landlord shall return the Financial Requirements LC delivered in
connection with the Extension Space to Tenant.

          (B) The Fixed Rent payable by Tenant to Landlord during the Extension Term
shall be increased to an amount equal to the Fair Market Rent (as defined and
determined herein), which determination shall be as of nine (9) months prior to
the Extension Term Commencement Date.

With
respect to the Extension Term, effective as of the Extension Term Commencement
Date, (1) the Base Operating Year shall be the Operating Year in which the
Extension Term Commencement Date occurs and (2) the Base Taxes shall be the
Taxes, as finally determined, for the Tax Year ending immediately prior to the
occurrence of the Extension Term Commencement Date.

          Section
42.2 In the event that
Tenant shall duly exercise its Extension Option in accordance with this Article
42, and disputes Landlord’s determination of Fixed Rent for the Extension
Term and shall be unable to resolve such dispute with Landlord, then Tenant
shall initiate the arbitration process provided for herein by designating its
arbitrator in a notice (the “Tenant’s Arbitration Notice”) to Landlord
(which notice must specify the name, address and telephone number of the person
designated to act as an arbitrator on

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its
behalf) given to Landlord no later than thirty (30) days after Tenant shall
have delivered the Extension Notice, time being of the essence, and the
determination of the Fair Market Rent of the Extension Space shall be made in
accordance with the provisions of Section 42.8 hereof,
provided, however, that neither Landlord nor Landlord’s arbitrator shall be
bound by nor shall any reference be made to the determination of the Fixed Rent
which was furnished by Landlord in the Rent Determination Notice, but
Landlord’s Submitted Value may not exceed Landlord’s determination of the Fixed
Rent for the Extension Term as furnished by Landlord under the Rent
Determination Notice. If Tenant fails to deliver the Tenant’s Arbitration Notice
as provided above, time being of the essence, then Landlord’s determination of
the Fixed Rent during the applicable Extension Term in the Rent Determination
Notice shall be final and conclusive.

          Section
42.3 Except as provided
in Section 42.1 hereof, and unless the context shall otherwise
specifically require, Tenant’s occupancy of the Extension Space during the
applicable Extension Term shall be on the same terms and conditions as during
the initial Term of this Lease (the “Unextended
Term”), provided, however, (a) Tenant shall have no further right to extend
the term of this Lease pursuant to this Article 42, (b) Tenant shall not be entitled to any
credits or allowances for tenant improvements or similar work to be performed
by Tenant or any similar credit or improvement that may be provided pursuant to
any other provisions in this Lease, (c) Tenant shall accept the Extension Space
during the Extension Term in its then “as is” condition and Landlord shall not
be obligated to perform any work or make any improvements of any kind
whatsoever except any obligations of Landlord with respect to the repair of
Basic Construction of the Building as set forth in Article 4 and
Landlord’s obligations with respect to any casualty or condemnation pursuant to
Articles 10 and 11 hereof, (d) Tenant shall be obligated, at its sole
expense, and subject to the terms and conditions of Article 3, to
separately demise the Extension Space, if applicable, and (e)there
shall be no rent abatements or concessions of any kind with respect to the
Extension Space including without limitation the rent abatement under Section
1.3(B).

          Section
42.4 Time shall be of
the essence with respect to the giving of each Extension Notice. The
termination of this Lease in full during the Unextended Term or the Extension
Term as applicable, shall also automatically, completely and irrevocably
without any further act by either party, terminate and render void any option
or right on Tenant’s part to extend the term of this Lease pursuant to this Article
42 whether or not such option or right shall have theretofore been
exercised. None of Tenant’s options or elections set forth in this Article
42 may be severed from this Lease or separately sold, assigned or
transferred.

          Section
42.5 If Tenant exercises
its right to extend the Term for an Extension Term pursuant to this Section
42, (i) the phrases “the term of this Lease” or “the term hereof” or “Term”
or similar phases as used under the Lease, shall be construed to include the Extension
Term, the Expiration Date shall be construed to be the date of the expiration
of the Extension Term and the Premises shall be construed to be the Extension
Space.

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          Section
42.6 If this Lease is
renewed for an Extension Term, such exercise shall be self-operative and no
further instrument shall be required, however, in confirmation of such
extension, Landlord and Tenant may each request that the other execute,
acknowledge and deliver, and the parties shall so execute, acknowledge and
deliver, an instrument in form reasonably acceptable to each of them confirming
the exercise of the applicable Extension Option and the Expiration Date under
the applicable Extension Term.

          Section
42.7 The “Fair Market Rent” for the applicable space shall mean the annual fair market rental value
for leases of comparable leasable space upon comparable terms in comparable
office buildings in midtown Manhattan (including market rents then being
charged at the Building for comparable leasable space) based upon the following
factors (and the arbitrators to be appointed under Section 42.8 shall be
instructed to base their determinations thereon accordingly). For purposes of
this Section 42.7, comparable office buildings shall mean properties
similar in location, reputation of ownership, amount of space available for
lease, tenant roster and financial stability.

          (A) that Landlord and
Tenant are typically motivated;

          (B) that Landlord and
Tenant are well informed and well advised and each is acting in what it
considers its own best interest;

          (C) that a reasonable time
under then existing market conditions is allowed for exposure of the applicable
space on the open market;

          (D) that in the event the applicable space or any portion thereof have been
destroyed or damaged by fire or other casualty, such damage has been fully
restored;

          (E) that the applicable space is to be let subject to the provisions of this
Lease;

          (F) that the Base Taxes and Base Operating Year are as set forth in this Article
42 or in Article 44, as applicable;

          (G) that Tenant will incur no moving or storage costs;

          (H) that the applicable space will be let in its then “as is” condition, and
Landlord will not be paying any work letter or allowance (or providing any free
rent period, rent abatement or similar concessions in lieu of a work letter) or
performing any work in order to prepare the applicable space for occupancy;

          (I) that the applicable space is to be let by a single user; and

          (J) that the applicable space is on a particular floor in the Building.

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          In
rendering such determination, the arbitrators shall not modify or assume the
modification of the provisions of this Lease except as specifically provided in
this Article 42.

          Section
42.8 (A) Within thirty (30) days after Landlord’s
receipt of Tenant’s Arbitration Notice, Landlord shall give notice to Tenant
specifying the name, address and telephone number of the person designated to
act as an arbitrator on Landlord’s behalf (“Landlord’s
Arbitration Notice”). If Landlord fails to deliver the Landlord’s
Arbitration Notice within such thirty (30) day period, then Landlord’s
arbitrator shall be appointed in the same manner as if both arbitrators cannot
agree on the appointment of a third arbitrator as set forth in Subsection
42.8(C) below.

          (B) If Landlord designates
an arbitrator within the time period specified above, the two arbitrators so
chosen shall meet within thirty (30) days after Landlord’s arbitrator is
appointed, and shall exchange sealed envelopes each containing such
arbitrator’s written determination of the Fair Market Rent. Landlord’s
arbitrator shall not be bound by nor shall either arbitrator make any reference
to the determination of the Fixed Rent for the space in question which was
previously furnished by Landlord to Tenant. The Fair Market Rent specified by
Landlord’s arbitrator shall herein be called “Landlord’s
Submitted Value” and the
Fair Market Rent specified by Tenant’s arbitrator shall herein be called “Tenant’s Submitted Value”. Copies of such written determinations
shall promptly be sent to both Landlord and Tenant. Any failure of either such
arbitrator to exchange such determinations shall be deemed acceptance of the
other party’s arbitrator’s determination as the Fair Market Rent, if, and only
if, such failure persists for ten (10) days after notice to the party for whom
such arbitrator is acting.

          (C) If the higher determination of Fair Market Rent for the space in question
is not more than 105% of the lower determination of such Fair Market Rent, then
the Fair Market Rent for such space shall be deemed to be the average of the
two determinations. If, however, the higher determination is more than 105% of
the lower determination, then within thirty (30) days after the date the
arbitrators submitted their respective Fair Market Rent determinations, the two
arbitrators shall together appoint a third arbitrator. In the event of their
being unable to agree upon such appointment within thirty (30) days after the
submission of the respective arbitrators’ Fair Market Rent determinations to
Landlord and Tenant, the third arbitrator shall be selected by the parties
themselves if they can agree thereon within a further period of fifteen (15)
days. If the parties do not so agree, then either party, on behalf of both and
on notice to the other, may request such appointment of an arbitrator meeting
the requirements under Article 42 by the New York Office of the American
Arbitration Association (or any organization successor thereto) in accordance
with its rules, practices and procedures; or, if the American Arbitration
Association (or such successor organization) shall fail to appoint said third
arbitrator within fifteen (15) days after such request is made, then either
party may apply, on notice to the other, to the Supreme Court, New York County,
New York (or any other court having jurisdiction and exercising functions
similar to those now exercised by said Court) for the appointment of such third
arbitrator. Such third arbitrator shall, within thirty (30) days after his or
her appointment, choose either the Landlord’s Submitted Value or the Tenant’s

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Submitted
Value (but no other amount) as the Fair Market Rent of the space in question
and send copies of this determination promptly to both Landlord and Tenant and
their arbitrators. Whichever of Landlord’s Submitted Value or Tenant’s
Submitted Value shall be selected by such third arbitrator shall conclusively
be deemed to be the Fair Market Rent.

          (D) Each party shall pay the fees and expenses of the arbitrator appointed by
or for such party, and the fees and expenses of the third arbitrator and all
other expenses (not including the attorneys’ fees, witness fees and similar
expenses of the parties, which shall be borne separately by each of the
parties) of the arbitration shall be borne by the parties equally.

          (E) Each of the arbitrators selected as herein provided must be a
professional employee or principal of an unaffiliated respectable company
engaged in the business of real estate brokerage and/or consulting operating in
the City of New York with at least ten (10) years’ experience in the leasing
and renting, on behalf of either landlords or tenants, of office space in
first-class office buildings in Manhattan.

          (F) Each arbitrator shall certify to Landlord and Tenant whether or not, in
the previous three (3) years, the arbitrator or his or her company have (x) been retained by Landlord or
Tenant or any affiliate of either and/or (y) been involved in an adversarial
arbitration or litigation proceeding with either Landlord or Tenant. Landlord
and Tenant reserve the right to reject any arbitrator for good cause within ten
(10) Business Days after receipt of the certification provided above.

          (G) The arbitration shall be conducted, to the extent consistent with this Article
42, in accordance with the then prevailing rules of the American Arbitration
Association (other than the American Arbitration Association rules relating to
the appointment of arbitrators), or such other procedures as are agreed to by
the arbitrators or the parties hereto. In rendering such decision and award,
the arbitrators shall not add to, subtract from or otherwise modify the
provisions of this Lease. Judgment may be had on the decision and award of the
arbitrator(s) so rendered in any court of competent jurisdiction.

          (H) In the event the Tenant elects the aforesaid arbitration process and as
of the date on which the Fixed Rent based on the Fair Market Rent was to become
effective (the “Applicable Date”) the amount of the Fair Market Rent has not been determined, Tenant
shall pay the amount based on the determination by Landlord to be the Fair
Market Rent and when the determination has actually been made, an appropriate
retroactive adjustment shall be made as of the Applicable Date.

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ARTICLE 43

RIGHT OF FIRST OFFER

          Section
43.1 If at any time
during the Term prior to the date one (1) year before the Fixed Expiration Date
(and at any time during the Term and up to one (1) year prior to the expiration
date of the Extension Term if Tenant has properly exercised the Extension
Option as provided under Article 42), all or any portion of the third
(3rd) or sixth (6th) floors has become, or Landlord anticipates will become,
available for leasing (all or any portion of such space that becomes available
being referred to as the “Offering Space”), and subject to the
rights of any Superior Occupant, then Landlord, before offering such space to
any other party other than a Superior Occupant, shall offer to Tenant the right
(the “ROFO”) to lease such Offering Space on the terms
and conditions of this Lease (but exclusive of any rent abatements, tenant
allowances or work to be performed by Landlord to prepare the Offering Space
for occupancy, except as may specifically be provided in this Article), and
such additional terms and conditions as are hereinafter set forth.

          Section
43.2 Any offer pursuant
to this Article 43 shall be made by Landlord to Tenant in a written notice
(hereinafter called the “Offering Space Notice”) which offer
shall set forth, inter alia (a) the Offering Space being offered,
(b) the term for which the Offering Space shall be leased (which need not be
co-terminus with the Term for the originally demised Premises), (c) Landlord’s
calculation of the Fixed Rent for the Offering Space, which shall be comparable
to the Fixed Rent at which such space would be offered to third parties
(modified to reflect any significant rent abatement, improvement allowance or
other concessions Landlord would offer to any such third party unless Landlord
elects to give such concessions to Tenant), (d) Landlord’s determination of the
number of rentable square feet of and Tenant’s Proportionate Share with respect
to the Offering Space being offered, (e) the Base Operating Year, Base Taxes,
Tenant’s Operating Share and Tenant’s Tax Share to be applicable to the Offering
Space being offered and (f) the date on which Landlord anticipates that the
Offering Space will become available for delivery to Tenant in the condition
specified in this Section 43.2. Tenant may accept the offer set forth in
the Offering Space Notice by delivering to Landlord an unconditional acceptance
(hereinafter called “Tenant’s Acceptance Notice”) of such offer
within thirty (30) days after delivery by Landlord of the Offering Space Notice
to Tenant. Tenant may only accept the offer as to the entire Offering Space
described in the Offering Space Notice. Time shall be of the essence with
respect to the giving of the Tenant’s Acceptance Notice. Tenant shall accept
the Offering Space offered to Tenant vacant, broom clean and “as is” on the
Offering Space Inclusion Date, and Tenant agrees that Landlord will not be
required to make any improvements therein or have any liability of any kind for
any delays in delivery of such space or for failure to deliver same.

          Section
43.3 If Tenant shall
duly deliver to Landlord a Tenant’s Acceptance Notice in accordance with this
Article, then Tenant shall conclusively and irrevocably be deemed to have
accepted Landlord’s offer and this Lease shall automatically and without any
further act by either party be deemed to be amended to reflect that Tenant
leased all of the Offering Space designated in Tenant’s Acceptance Notice on
the terms and

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conditions
set forth in this Article 43 and the Offering Space Notice, and the
Offering Space shall be added to and included in the Premises on the later to
occur of (i) the date set forth in the Offering Space Notice or (ii) the date
that such Offering Space is available for Tenant’s possession in the condition
in which such space is required to be delivered in accordance with this
Article. Tenant’s exercise of the ROFO shall be self-operative and no further
instrument shall be required, provided, however, in confirmation of the
exercise of the ROFO, Landlord may request that Tenant execute, acknowledge and
deliver, and the Tenant shall so execute, acknowledge and deliver, an
instrument in form reasonably acceptable to Landlord confirming the exercise of
the ROFO and the terms specific to the Offering Space.

          Section
43.4 If Tenant does not
deliver (or fails to timely deliver, time being of the essence) a Tenant’s
Acceptance Notice within the thirty (30) day period described in Section
43.2, then Tenant shall have automatically, completely and irrevocably,
without any further act by any party, waived its rights under this Article
43 with respect to the leasing of the Offering Space described in the
Offering Space Notice and Landlord shall at any and all times thereafter be
entitled to lease such Offering Space to others at such rentals and upon such
terms and conditions as Landlord in its sole and absolute discretion may
desire, whether such rental terms, provisions and conditions are the same as
those offered to Tenant or more or less favorable, and Landlord shall not be
obligated to offer such Offering Space to Tenant if it later becomes available
for leasing. Notwithstanding the foregoing, before Landlord may lease such
Offering Space set forth in such Offering Space Notice to any proposed tenant
for a rental which shall be more than ten (10%) percent less than the rental
set forth in the Offering Space Notice with respect to such Offering Space,
Landlord shall again offer the Offering Space to Tenant in accordance with the
provisions of this Article 43 on the basis of the applicable revised
terms.

          Section
43.5 The provisions of
this Article 43 shall be effective only if, upon (a) the date the
Offering Space becomes available for leasing, (b) the date of the Tenant’s
Acceptance Notice and (c) the date the Offering Space becomes available for
possession (i) the named Tenant is in actual physical occupancy and possession
of an amount of space equal to at least fifty (50%) percent of the Premises
previously delivered by Landlord to Tenant, (ii) no Event of Default shall have
occurred and be continuing and (iii) Tenant shall (x) have met the Financial
Requirements or (y) have delivered a Financial Requirements LC to Landlord with
respect to the Offering Space. The rights described in this Article 43 are
personal to Coty Inc. and/or any “Related Entity” meeting the criteria
specified in Article 12 of this Lease and no person or entity other than
the named Tenant or such “Related Entity” shall be entitled to exercise any
right granted by this Article 43.

          Section
43.6 “Superior Occupant” shall mean (a) any existing tenant or other
occupant of any Offering Space and (b) any tenant or occupant in the Building
with respect to which Landlord has prior to the execution of this Lease granted
any rights to the Offering Space. No space shall be deemed “available” for
leasing if (i) the then tenant of such space or any assignee, subtenant or
other occupant holding through or under

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such
tenant, shall enter into any agreement with Landlord extending the lease or
other letting agreement affecting such space or (ii) such space is vacant as of
the date hereof.

          Section
43.7 The parties hereto
acknowledge that the Offering Space is currently and may be in the future
occupied by another tenant and/or subtenants and that Landlord shall not
deliver to Tenant the Offering Space until such tenant and/or subtenants have
vacated and surrendered the Offering Space to Landlord. Landlord represents
that, as of the date hereof, the following other tenants in the Building are
the only tenants with rights affecting the Offering Space: Advanstar
Communications, Inc., Weider Publications Inc., The Segal Company (Eastern
States), Inc. and The New York State Office of the Inspector General. Provided
that (i) this Lease shall remain in full force and effect, (ii) no Event of
Default shall have occurred and be continuing and (iii) Tenant shall not have
assigned or sublet any space in the Premises in a manner so as to be unable to
fulfill the occupancy requirements of Section 43.5, Landlord will not
grant any new rights affecting the Offering Space to any other tenants of the
Building until the date one day after one (1) year prior to the Fixed
Expiration Date (or one (1) year prior to the expiration date of the Extension
Term if Tenant has properly exercised the Extension Option as provided under Article
42), except with respect to Offering Space for which Tenant shall have
waived its rights under Section 43.4 or otherwise. If Landlord is unable
to give possession of the Offering Space to Tenant because of the holding-over
or retention of possession of such tenant and/or subtenants, or any other
undertenant or other occupant of the Offering Space, or for any other reason,
Landlord shall not be subject to any claims or damages of any kind or nature
whatsoever for failure to give possession, and the validity of this Lease shall
not be impaired in any manner under such circumstances, Tenant hereby waiving
all rights under Section 223-a of the Real Property Law of New York or any
successor or similar statute with respect thereto. Notwithstanding the
foregoing, Landlord shall use commercially reasonable efforts (including, if
necessary in Landlord’s sole determination, the commencement of one or more
holdover proceedings) to obtain possession of the Offering Space.

ARTICLE 44

OPTION SPACE

          Section
44.1 Provided Tenant
shall have given timely notice as hereinafter provided, Tenant shall have the
option (the “Space Option”) to lease either
50,000 or 100,000 rentable square feet in the Building, as designated by
Landlord (the “Option Space”) upon the terms
and subject to the conditions of this Lease (including without limitation the
same Term, but exclusive of any rent abatements, tenant allowances, or work to
be performed by Landlord to prepare the Option Space for occupancy) and such
additional terms and conditions as are hereinafter set forth. Notwithstanding
the foregoing, if Tenant exercises the Space Options as provided herein and
selects an Option Space of (x) 50,000 rentable square feet, Landlord shall be
entitled, based on space availability in the Building as determined by Landlord
in its sole discretion, to offer to Tenant (and Tenant shall be obligated to
accept) Option Space consisting of between 50,000 and 60,000 rentable square
feet, provided that such Option Space consists of full and contiguous floors
only, and (y) 100,000 rentable square feet, Landlord shall be entitled, based
on space availability in the Building as determined by Landlord in its sole

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discretion,
to offer to Tenant (and Tenant shall be obligated to accept) Option Space
consisting of between 90,000 and 110,000 rentable square feet, consisting of
full floors only, at least 60,000 rentable square feet of which shall be
contiguous. If Tenant selects Option Space of 100,000 rentable square feet,
Tenant shall exercise the Space Option by written notice (hereinafter called
the “100,000 Space Acceptance Notice”)
from Tenant to Landlord given on or before July 1, 2001, time being of the
essence. In the event Tenant does not exercise the Space Option for 100,000
rentable square feet on or before July 1, 2001, Tenant shall still be entitled
to select Option Space for 50,000 rentable square feet by a written notice
(hereinafter called the “50,000 Space
Acceptance Notice”) from Tenant to Landlord given on or before
October 1, 2001, time being of the essence. In the event Tenant shall deliver
either a 50,000 Space Acceptance Notice or a 100,000 Space Acceptance Notice to
Landlord within the time period set forth above, Tenant shall be deemed to have
irrevocably agreed to lease the applicable Option Space in the Premises
effective as of the date (the “Option
Space Inclusion Date”) that is the earlier of (i) the later of
(A) the date Landlord shall have (x) obtained possession of the Option Space
and (y) made the Option Space available for Tenant’s possession free and clear
of any and all tenants, subtenants and other occupants and (B) January 1, 2003,
and (ii) the date that Tenant or any one claiming under or through Tenant first
takes possession of the Option Space, or any part thereof, for the performance
of any Alterations or the conduct of business. If Tenant does not deliver a
100,000 Space Acceptance Notice to Landlord on or before July 1, 2001, time
being of the essence, then Tenant shall be deemed to have waived and
relinquished its right to exercise the Space Option for 100,000 rentable square
feet. If Tenant does not deliver a 50,000 Space Acceptance Notice to Landlord
on or before October 1, 2001, time being of the essence, then Tenant shall be
deemed to have waived and relinquished its right to exercise the Space Option
in its entirety and Landlord shall at any and all times thereafter be entitled
to lease the Option Space to others at such rentals and upon such terms and
conditions as Landlord in its sole discretion may desire. Landlord shall
designate the Option Space being offered, in writing, within thirty (30) days
after receipt by Landlord of the Space Acceptance Notice.

          Section
44.2 In the event that
Tenant shall timely exercise the Space Option in accordance with the provisions
of Section 44.1, then in such event effective as of the Option Space
Inclusion Date:

          (A) The Fixed Rent for the Premises shall be equal to the Fair Market Rent
for the Option Space as determined by Article 42.

          (B) Landlord shall determine and submit the Fixed Rent for the Option Space
in a Rent Determination Notice forty-five (45) days after receipt of the Space
Acceptance Notice. If Tenant shall dispute Landlord’s determination of the Fair
Market Rent for the Option Space and shall be unable to resolve such dispute
with Landlord, then Tenant shall initiate the arbitration process by
designating its arbitrator in a Tenant’s Arbitration Notice given to Landlord
no later than forty-five (45) days after Landlord shall have delivered the Rent
Determination Notice, time being of the essence and the determination of the
Fair Market Rent shall be made in accordance with the provisions of Section
42.9. If Tenant fails to deliver the Tenant’s Arbitration Notice as
provided above, time being of

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the
essence, then Landlord’s determination of the Fixed Rent for the Option Space
shall be fixed and conclusive.

          (C) Effective as of the Option Space Inclusion Date, for purposes of
calculating the portion of Tenant’s Operating Payment and Tenant’s Tax Payment
allocable to the Option Space: (i) the Base Operating Year and the Base Taxes
shall be the year in which the Option Space Inclusion Date occurs and (ii)
Tenant’s Tax Share attributable to the Option Space shall be and Tenant’s
Operating Share attributable to the Option Space shall be appropriately
calculated by Landlord.

          Section
44.3 Tenant agrees to
accept the Option Space, vacant, broom clean and in its “as is” condition and
state of repair existing as of the Option Space Inclusion Date and understands
and agrees that Landlord shall not be required to perform any work, supply any
materials or incur any expense to prepare such space for Tenant’s occupancy
thereof.

          Section
44.4 Landlord agrees
from time to time upon Tenant’s written request therefor to advise Tenant of
the then expected availability of possession of the Option Space for Tenant.

          Section
44.5 Tenant’s exercise
of the Space Option shall be self-operative and no further instrument shall be
required, provided, however, in confirmation of the exercise of the Space
Option, either Landlord or Tenant may require that the parties execute,
acknowledge and deliver, and the Tenant shall so exercise, acknowledge and
deliver, an instrument in form reasonably acceptable to each of them confirming
the exercise of the Space Option.

          Section
44.6 The provisions of
this Article 44, at Landlord’s sole option, shall be effective only if,
upon both the date of the Option Space Acceptance Notice and the date the
Option Space becomes available for possession (x) the named Tenant and/or any
Related Entity, meeting the criteria specified in Section 12.4 hereof,
is in actual occupancy of at least fifty (50%) percent of all of the rentable
space in the Premises, (y) no Event of Default under any of the terms and
conditions of this Lease shall have occurred and be continuing and (z) Tenant
shall (i) have met the Financial Requirements or (ii) have delivered a
Financial Requirements LC with respect to the Option Space. The rights
described in this Article are personal to Coty Inc. and/or any “Related Entity”
meeting the criteria specified in Article 12 of this Lease and no person or
entity other than the named Tenant or such “Related Entity” shall be entitled
to exercise any right granted by this Article 44.

          Section
44.7 Landlord shall be
obligated to provide Option Space to Tenant on or before January 1, 2003 as
provided under this Article 44 free and clear of any and all tenants,
subtenants and other occupants. Subject to the foregoing, the parties hereto
acknowledge that the Option Space may be or become occupied by another tenant
and that Landlord shall not deliver to Tenant the Option Space until such
tenant has vacated and surrendered the Option Space to Landlord. If Landlord is
unable to give possession of the Option Space to Tenant because of the
holding-over or retention of possession of

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such
tenant, or any other undertenant or other occupant of the Option Space,
Landlord shall not be subject to any claims or damages of any kind or nature
whatsoever for failure to give possession, and the validity of this Lease shall
not be impaired in any manner under such circumstances Tenant hereby waiving
all rights under Section 223-a of the Real Property Law of New York or any
successor or similar statute with respect thereto. Notwithstanding the
foregoing, Landlord shall use commercially reasonable efforts (including, if
necessary in Landlord’s sole determination, the commencement of one or more
holdover proceedings) to obtain possession of the Option Space.

          IN WITNESS
WHEREOF, Landlord and Tenant have respectively executed this Lease as of the
day and year first above written.

	
  

 	
  

 	
  

 
	
  

 	
 LANDLORD:

 
	
  

 	
  

 
	
  

 	
 ONE PARK
 AVENUE TENANT LLC

 
	
  

 	
  

 
	
  

 	
 By: ONE PARK
 AVENUE MANAGER LLC, Manager

 
	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Andrew
 Penson

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
     Name:
 Andrew Penson

 
	
  

 	
  

 	
     Title:
 Authorized Signatory

 
	
  

 	
  

 	
  

 
	
  

 	
 TENANT:

 
	
  

 	
  

 
	
  

 	
 COTY INC.

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Francis
 X. Suozzi

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
     Name:
 Francis X Suozzi

 
	
  

 	
  

 	
     Title:
 Senior Vice President - Finance

 

- 94 -

APPENDIX TO LEASE 

DEFINITIONS

The following terms shall have the meaning set forth below:

“Abatement Period”
shall have the meaning set forth in Section 1.3(B).

“Additional Rent”
shall mean any and all sums of any kind or nature whatsoever due, owing or
payable to Landlord pursuant to the terms and conditions of this Lease, other
than Fixed Rent, but specifically including (without limitation) Escalation
Rent.

“Affiliate of any Person”
shall mean any person or entity which directly or indirectly, controls or is
controlled by or is under the common control (as defined in Section 12.4)
of such Person.

“Agent” shall mean
the managing agent for the Building which is, as of the date hereof,
Insignia/ESG, Inc. 200 Park Avenue, New York, New York 10166.

“Alterations” shall
mean any alterations, installations, replacements, improvements, additions and
other physical changes in or about the Premises (whether structural,
nonstructural or otherwise) and shall include, without limitation, the Initial
Alterations.

“Alternate Service Provider”
shall have the meaning set forth in Section 13.5.

“Applicable Date”
shall have the meaning set forth in Section 42.9(H).

“Applicable Rate”
shall mean the lesser of (x) five (5) percentage points per annum above the
then current Base Rate and (y) the maximum rate permitted by applicable law.

“Assessed Valuation”
shall have the meaning set forth in Section 27.1(A).

“Assignment Profit”
shall have the meaning set forth in Section 12.7(A)(1).

“Bankruptcy Code”
shall mean 11 U.S.C. Section 101 et seq., including any amendments thereto and
any successor statute thereto or any statute of similar nature and purpose.

“Base Operating Year”
shall have the meaning set forth in Section 27.1(B).

“Base Rate”
shall mean the rate of interest publicly announced from time to time by The
Wall Street Journal, or its successor, as the prime rate (or such other term as
may be used, from time to time, for the rate presently referred to as the prime
rate). In the event that the “prime rate” (or other term used for the rate
currently called the “prime rate”) shall cease to be published by The Wall
Street Journal, then Landlord shall designate another nationally recognized
publication that publishes the “prime rate” or, if no such other nationally
recognized publication publishes the “prime rate,” Landlord will designate a
comparable reference rate hereunder.

- i -

“Base Taxes” shall have the meaning set forth in Section
27.1(C).

“Basic Construction of the Building” shall mean the demising walls, structural
slabs constituting the floors and ceilings, structural columns, exterior walls
and Building Systems to the extent necessary to be delivered to the Premises,
or to such other more remote location where the point of connection of the
Independent Systems to the Building Systems is located or is to be located
pursuant to the terms hereof (and in all events shall exclude the distribution
of any such Building Systems within the Premises).

“Broker” shall have the meaning set forth in Article 34.

“Building” shall mean all the buildings, equipment and
other improvements and appurtenances of every kind and description now located
or hereafter erected, constructed or placed upon the land (and any and all
alterations, renewals, and replacements thereof, additions thereto and
substitutions therefor), known by the address of One Park Avenue, New York, New
York.

“Building Systems” shall mean the mechanical (including
without limitation heating, ventilation and air conditioning), electrical,
elevator, plumbing, life safety, steam and other service systems of the
Building serving space in the Building generally (whether inside or outside the
Premises), exclusive of the Independent Systems.

“Business Days” shall mean all days, excluding Saturdays,
Sundays and all days observed by either the State of New York or the Federal
Government or by the labor unions servicing the Building as legal holidays.

“Commencement Date” shall mean the date of this Lease.

“Comparable Space” shall mean space in the Building of a size
that is no more than 25% smaller, and no more than 25% larger, than the space
in the Building to which it is being compared.

“Construction Procedures” shall mean the construction procedures,
rules and regulations established by Landlord with respect to work in the
Building, and substantially in the form annexed hereto and made a part hereof
as Schedule H, which procedures, rules and regulations shall be enforced
on a non-discriminatory basis to all tenants in the Building, and such other
further procedures, rules and regulations as Landlord or Landlord’s agents may
from time to time adopt, effective as to Tenant from and after notice is given
to Tenant.

“Contractor List” shall have the meaning set forth in Section
3.1(D)(1).

“Consumer Price Index” shall mean the Consumer Price Index for All
Urban Wage Earners, New York, N.Y.-Northeastern New Jersey Areas, All items
(1982-84 = 100) published by the Bureau of Labor Statistics of the United
States Department of Labor, or any successor index thereto, appropriately
adjusted.

“Current Operating Year” shall have the meaning set forth in Section
27.3(C).

- ii -

“Current Service Provider” shall have the meaning set forth in Section
13.5. 

“Damages Notice” shall have the meaning
set forth in Section 37.5. 

“Decorative Alterations” shall mean Alterations solely within the
Premises of a decorative nature, such as painting, carpeting and wall papering.

“Discount Rate” shall mean the rate of
interest equal to 3.5% below the Base Rate. 

“Dwyer Unit” shall mean kitchen facilities for the
refrigeration, preparation, cooking and service of food consisting solely of a
refrigerator, microwave oven, dishwasher, sink, ice maker and coffee and
espresso machine. 

“Early Termination Date” shall have the meaning set forth in Section
12.9(A).

“Election Notice” shall have the meaning set forth in Section
12.6(B). 

“Escalation Rent” shall mean the Tax
Payment and Tenant’s Operating Payment, collectively.

“Estimated Compliance Costs” shall have the meaning set forth in Section
15.2. 

“Event of Default” shall have the
meaning set forth in Section 16.1.

“Excess Net Sums” shall have the meaning set forth in Section
12.6(G). 

“Existing Superior Lease” shall have the
meaning set forth in Section 7.1(D)(1). 

“Expiration Date” shall mean the Fixed Expiration Date or
such earlier or later date on which the Term shall sooner or later end pursuant
to any of the terms, conditions or covenants of this Lease or pursuant to law.

“Extension Notice” shall have the
meaning set forth in Section 42.1(A).

“Extension Option” shall have the
meaning set forth in Section 42.1(A).

“Extension Reguest” shall have the
meaning set forth in Section 42.1(A).

“Extension Space” shall have the meaning
set forth in Section 42.1(A).

“Extension Term” shall have the meaning
set forth in Section 42.1(A).

“Extension Term Commencement Date” shall
have the meaning set forth in Section 42.1(A).

“Fair Market Rent” shall have the
meaning set forth in Section 42.8.

- iii -

“Financial Requirements” shall mean with
respect to a particular entity that such entity has a Net Worth, after giving
effect to the applicable transaction, if any, equal to or greater than
$150,000,000.

“Financial Requirements LC” shall mean a clean, standby, irrevocable letter of credit in an amount
equal to $1,500,000 for every 50,000 rentable square feet, (proportionately
adjusted for floors of 30,000 rentable square feet or portions of full floors
based upon the actual rentable square feet) of the Extension Space, Offering
Space or Option Space, as applicable, and otherwise meeting the requirements
for the Security Letter under Section 31.2.

“Fixed Expiration Date” shall mean the
last day of the month in which occurs the date which is fifteen (15) years after
the Rent Commencement Date.

“Fixed Rent” shall have the meaning set
forth in Section 1.2.

“Governmental Authority (Authorities)”
shall mean the United States of America, the State of New York, the City of New
York, any political subdivision thereof and any court, agency, department,
commission, board, bureau or instrumentality of any of the foregoing, now
existing or hereafter created, having jurisdiction over the Real Property or
any portion thereof.

“Hazardous Materials” shall mean,
collectively, any pollutant, contaminant, flammable, explosive or radioactive
material, hazardous waste, toxic substance or related material and any other
substance or material defined or designated as a hazardous or toxic substance,
material or waste by any Requirement of Law or the removal of which is
required, or the manufacture, use, maintenance, storage, ownership or handling
of which is restricted, prohibited, regulated or penalized by any Requirement
of Law, and shall include, without limitation:

          (i) those substances
included within the definition of “hazardous substances”, “extremely
hazardous”, “hazardous materials”, “hazardous waste”, “toxic substances” or
“solid waste” in the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as amended, 42 U.S.C. Section 9601 et seq., the
Emergency Planning and Community Right-To-Know Act, 42 U.S.C. Sections
11001-11050, the Resource Conservation and Recovery Act of 1976, 42 U.S.C.
Section 6901 et seq., the Toxic Substances Control Act, 15 U.S.C. Section 2601
et seq., and the Hazardous Materials Transportation Act, 49 U.S.C. Section 5101
et seq., and in the regulations adopted and promulgated pursuant to said laws,
and any successor statutes or regulations thereto;

          (ii) those
substances listed in the United States Department of Transportation Table (49
C.F.R. 172.101 and any amendments thereto) or by the Environmental Protection
Agency (or any successor agency) as hazardous substances (40 C.F.R. Part 302
and any amendments thereto);

- iv -

          (iii) such
other substances, materials and wastes which are regulated as to the manner of
use, storage or disposal under any Requirement of Law, or which are classified
as hazardous or toxic under any Requirement of Law;

          (iv) any
substance which is toxic, explosive, corrosive, flammable, infectious,
radioactive, carcinogenic, mutagenic or otherwise hazardous, or any substance
which contains gasoline, diesel fuel or other petroleum hydrocarbons,
polychlorinated biphenyls (PCBs), or radon gas, urea formaldehyde, asbestos or
lead, and any asbestos or asbestos containing substance; and

          (v) any
waste, substance or material that exhibits any of the characteristics
enumerated in 40 C.F.R. Section 261.20-261.24, inclusive, or any “extremely
hazardous” substance listed under Section 302 of the Superfund Amendment and
Reauthorization Act of 1986 (“SARA”), and any successor statutes or
regulations thereto, that are present in excess of or equal to threshold
planning or reportage quantities defined under SARA. 

“HVAC” shall mean heat, ventilation and
air conditioning.

“HVAC Specifications” shall have the
meaning set forth in Section 28.2(A).

“Indemnitees” shall mean Landlord,
Agent, their respective direct and indirect partners, and their respective
shareholders, officers, directors, employees, agents and contractors.

“Independent Systems” shall mean the
HVAC, mechanical, electrical, plumbing, sanitary, sprinkler, smoke purge and
life safety and other service systems (or the applicable portions thereof)
specifically servicing the Premises and not other portions of the Building, it
being understood that any facilities and systems which exclusively service the
Premises and do not service other tenants or space in the Building outside the Premises (even though connected to systems outside the Premises)
shall be deemed to constitute “Independent Systems.”

“Initial Alterations” shall mean any
initial Alterations to be made by Tenant to prepare the Premises or any part
thereof for Tenant’s occupancy.

“Internal Components” shall have the
meaning set forth in Section 37.13.

“Landlord”, on the date as of which this
Lease is made, shall mean One Park Avenue Tenant LLC., a New York limited
liability company, having an office at c/o Argent Ventures LLC, 335 Madison
Avenue, New York, New York 10017, but thereafter, “Landlord” shall mean only
the then current tenant under the Existing Superior Lease or any replacement
thereof or if there is no Superior Lease with respect to the Real Property then
the fee owner of the Real Property.

“Landlord’s Arbitration Notice” shall
have the meaning set forth in Section 42.9.

“Landlord’s Contribution” shall have the
meaning set forth in Section 41.1.

- v -

“Landlord’s Costs” shall mean any and
all reasonable and actual costs and expenses paid or incurred to effect the
assignment or sublease contemplated under Section 12.8, including,
without limitation, legal fees, marketing expenses, advertising expenses,
brokerage commissions, free rent and other monetary inducements and new or
additional improvements to prepare the space for occupancy (and any work
allowance given in lieu of or in addition to performance of any improvements).

“Landlord’s Estimate” shall have the
meaning set forth in Section 27.3(C).

“Landlord’s Rate Schedule” shall mean,
for any period, the rate schedule for both Kilowatts of demand and Kilowatt
Hours of consumption at which Landlord purchases electricity for the Building
(or the portion thereoftor which Landlord purchases electricity from time to
time) from the utility company serving the Building during such period,
including all fuel purchase surcharges, fees, charges, taxes and amounts of
every kind which may be included in such schedule.

“Landlord’s Restoration Work” shall have
the meaning set forth in Section 10.1.

“Landlord’s Share” shall have the
meaning set forth in Section 41.1.

“Landlord’s Submitted Value” shall have
the meaning set forth in Section 42.9(B).

“Landlord’s Work” shall have the meaning
set forth in Section 19.1.

“Lessor(s)” shall mean a lessor under a
Superior Lease.

“Major Subletting” shall mean a
subletting meeting all of the requirements of this Lease and (a) for a term of
at least ten (10) years, (b) for at least one full floor of the Premises and
(c) at a sublease rental rate equal to or greater than the then Fixed Rent
under this Lease (increasing as Fixed Rent increases under this Lease) (with a
full pass through of Escalations).

“Major Subtenant” shall mean the
subtenant with respect to a Major Subletting. Each Major Subtenant shall also
be deemed a Substantial Subtenant.

“Minor HVAC Alterations” shall mean
those non-structural changes to the HVAC system which (a) do not require a
building permit, (b) only impact HVAC ducts and fans located solely within the
Premises and (c) do not require relocation or replacement of the individual
HVAC units.

“Mortgage(s)” shall mean any trust
indenture or mortgage which may now or hereafter affect the Real Property, the
Building or any Superior Lease and the leasehold interest created thereby, and
all renewals, extensions, supplements, amendments, modifications,
consolidations and replacements thereof or thereto, substitutions therefor, and
advances made thereunder.

“Mortgagee(s)” shall mean any trustee,
mortgagee or holder of a Mortgage.

- vi -

“Net Worth” shall mean, with respect to
a particular entity, the net worth of such entity determined in accordance with
generally accepted accounting principles, consistently applied, including
goodwill, based upon 1999 United States GAAP standards, and further based upon
audited financial statements of such entity from the end of the fiscal year of
the year prior to the date such net worth is being determined.

“Offering Space” shall have the meaning
set forth in Section 43.1. 

“Offering Space Notice” shall have the
meaning set forth in Section 43.2.

“Operating Expenses” shall have the
meaning set forth in Section 27.1(D).

“Operating Statement” shall have the
meaning set forth in Section 27.1 (E).

“Operating Year” shall have the meaning set forth in Section 27.1 (F).

“Option Space” shall have the meaning
set forth in Section 44.1.

“Option Space Inclusion Date” shall have
the meaning set forth in Section 44.1.

“Overtime Periods” shall have the
meaning set forth in Section 28.3.

“Parties” shall have the meaning set
forth in Section 37.2.

“Partnership Tenant” shall have the
meaning set forth in Article 29.

“Permitted Materials” shall have the
meaning set forth in Section 2.3.

“Person(s) or person(s)” shall mean any
natural person or persons, a partnership, a limited liability company, a
corporation and any other form of business or legal association or entity.

“Plaque” shall have the meaning set
forth in Section 37.15.

“Plaque Notice” shall have the meaning
set forth in Section 37.15.

“Plaque Right” shall have the meaning
set forth in Section 37.15.

“Premises” shall mean all of the space
on the fourth and fifth floors of the Building, all substantially as shown
hatched on the floor plan attached hereto as Schedule A and made a part
hereof, as the same may be adjusted during the Term pursuant to the terms
hereof. The term “Premises” shall exclude any and all portions of the space
demised to Tenant constituting the Basic Construction of the Building and/or
Building Systems.

“Real Property” shall mean the Building,
together with the plot of land upon which it stands.

“Related Entity” shall have the meaning
set forth in Section 12.4.

- vii -

“Rent Commencement Date” shall have the
meaning set forth in Section 1.3(B).

“Rent Determination Notice” shall have
the meaning set forth in Section 42.1(A).

“Rental” shall mean and be deemed to
include Fixed Rent, Escalation Rent and all Additional Rent.

“Requirements of Law” shall mean all
present and future laws, rules, orders, ordinances, regulations, statutes,
requirements, codes and executive orders, extraordinary as well as ordinary, of
all Governmental Authorities now existing or hereafter created, and of any and
all of their departments and bureaus, and of any applicable fire rating bureau,
or other body exercising similar functions, affecting the Real Property, or any
street, avenue or sidewalk comprising a part of or in front thereof or any
vault in or under the same, or requiring removal of any encroachment, or
affecting the maintenance, use or occupation of the Real Property.

“Restoration Notice” shall have the
meaning set forth in Section 10.2(B).

“ROFO” shall have the meaning set forth
in Section 43.1.

“Rules and Regulations” shall mean the
rules and regulations annexed hereto and made a part hereof as Schedule B,
and such other and further rules and regulations as Landlord or Landlord’s
agents may from time to time adopt, effective as to Tenant from and after
notice is given to Tenant. 

“Secured Area” shall mean a portion of
the Premises not to exceed 1,000 rentable square feet in the aggregate to be
designated as the Secured Area by Tenant from time to time in writing
(including with such writing a floor plan indicating the proposed Secured
Area), subject to the written consent by Landlord in each instance (such consent
not be unreasonably withheld or delayed).

“Security Letter” shall have the meaning
set forth in Section 31.2.

“50,000 Space Acceptance Notice” shall
have the meaning set forth in Section 44.1.

“100,000 Space Acceptance Notice” shall
have the meaning set forth in Section 44.1.

“Space Option” shall have the meaning
set forth in Section 44.1.

“Sublease Profit” shall have the meaning
set forth in Section 12.7(A)(2).

“Substantial Completion” shall have the
meaning set forth in Section 19.2(B).

“Substantial Subtenant” shall mean a
subtenant occupying at least twenty-five (25%) percent of the aggregate
rentable square feet of its floor in the Building.

“Superior Lease(s)” shall mean all
ground or underlying leases of the Real Property or the Building heretofore or
hereafter made by Landlord (or any lessor under a Superior 

- viii -

Lease)
and all renewals, extensions, supplements, amendments and modifications
thereof.

“Superior Occupant” shall have the
meaning set forth in Section 43.6.

“Tax Payment” shall have the meaning set
forth in Section 27.2(H).

“Tax Payment Installment” shall have the
meaning set forth in Section 27.1(I).

“Tax Statement” shall have the meaning
set forth in Section 27.1(J).

“Tax Year” shall have the meaning set
forth in Section 27.1(K).

“Taxes” shall have the meaning set forth
in Section 27.1(G).

“Tenant”, on the date as of which this
Lease is made, shall mean Coty Inc., a Delaware corporation, having an office
at 1325 Avenue of the Americas, 34th Floor, New York, New York 10019, but thereafter
“Tenant” shall mean only the tenant under this Lease at the time in question;
provided, however, that the initial tenant and any subsequent tenant hereunder
shall not be released from liability hereunder in the event of any assignment
or further assignment of this Lease.

“Tenant Delay” shall have the meaning
set forth in Section 19.2(C).

“Tenant’s Acceptance Notice” shall have
the meaning set forth in Section 43.2.

“Tenant’s Arbitration Notice” shall have
the meaning set forth in Section 42.2(B).

“Tenant’s Electricity” shall have the
meaning set forth in Section 13.1 (A).

“Tenant’s Fixture Costs” shall mean the
then unamortized and undepreciated costs of fixtures and leasehold improvements
installed at the Premises to the extent paid for by Tenant (and specifically
excluding any (i) personal property, furniture and equipment and (ii) fixtures
and leasehold improvements installed at the Premises to the extent paid for by
Landlord’s Contribution) determined on a straight line basis over the fifteen (15)
year Term and expressed as an annual sum per rentable square foot.

“Tenant’s Operating Payment” shall have
the meaning set forth in Section 27.3(A).

“Tenant’s Operating Share” shall mean
12.24% which has been computed on the basis of a fraction, the numerator of
which (100,000 rsf) is the rentable square footage of the Premises as deemed to
be applicable by Landlord and Tenant solely for the purposes of calculating
Tenant’s Operating Share and the denominator of which (817,307) is the rentable
square footage of the Building (less any retail space at the Building) as
deemed to be applicable by Landlord and Tenant solely for the purposes of
calculating Tenant’s Operating Share. The Tenant’s Operating Share may be
increased or decreased pursuant to the terms hereof.

- ix -

“Tenant’s Property” shall mean Tenant’s
movable fixtures and movable partitions, telephone and other equipment,
furniture, furnishings, decorations and other items of personal property.

“Tenant’s Restoration Work” shall have
the meaning set forth in Section 10.1.

“Tenant’s Submitted Value” shall have
the meaning set forth in Section 42.9.

“Tenant’s Tax Share” shall mean 11.73%
which has been computed on the basis of a fraction, the numerator of which
(100,000 rsf) is the rentable square footage of the Premises as deemed to be
applicable by Landlord and Tenant solely for the purposes of calculating
Tenant’s Tax Share and the denominator of which (852,301) is the rentable
square footage of the Building including the retail leasing space in the
Building as deemed to be applicable by Landlord and Tenant solely for the
purpose of calculating Tenant’s Tax Share. Tenant’s Tax Share may be increased
or decreased pursuant to the terms hereof.

“Tenant’s Work Elevator” shall have the
meaning set forth in Section 3.4.

“Tentative Monthly Escalation Charge”
shall have the meaning set forth in Section 27.3(C).

“Term” shall mean the term of this Lease
which shall commence on the Commencement Date and shall expire on the
Expiration Date.

“Term Sheet” shall have the meaning set
forth in Section 12.6(B).

“Term Sheet Transaction” shall have the
meaning set forth in Section 12.6(G).

“Termination Notice” shall have the
meaning set forth in Section 10.2(B).

“Transfer Statement” shall have the
meaning set forth in Section 12.6(B).

“Unavoidable Delays” shall have the
meaning set forth in Article 25.

“Unextended Term” shall have the meaning
set forth in Section 42.3.

“Y2K Compliant” shall have the meaning
set forth in Section 37.14.

- x -

SCHEDULE A

PREMISES

A- 1

SCHEDULE A

[Floor Plan]

SCHEDULE A (cont.)

[Floor Plan]

SCHEDULE B

RULES AND REGULATIONS

          1. The
sidewalks, entrances, passages, courts, elevators, vestibules, stairways,
corridors, or halls shall not be obstructed or encumbered by any tenant or used
for any purpose other than ingress and egress to and from the Premises and for
delivery of merchandise and equipment in a prompt and efficient manner, using
elevators and passageways designated for such delivery by Landlord. 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 entrances, corridors, escalators, elevators and other facilities of
the Building by any other tenants. 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 sole judgment deems best for the benefit of the tenants generally.

          2. No
awnings, air-conditioning units, fans or other projections shall be attached to
the outside walls of the Building. No curtains, blinds, shades, or screens,
other than those which conform to Building standards as established by Landlord
from time to time, shall be attached to or hung in, or used in connection with,
any window or door of the Premises, without the prior written consent of
Landlord, provided, that, Tenant may submit to Landlord a list of shades or
screens for pre-approval by Landlord and after such approval Tenant shall not
be required to obtain Landlord’s consent to any shade or screen set forth on
such approved list unless, prior to Tenant’s purchase of such shades and/or
screens, Landlord shall notify Tenant in writing that such shade or screen has
been removed from such approved list. Tenant may propose additional shades or
screens to be added to such approved list, subject to the reasonable approval
of Landlord. Such awnings, projections, curtains, blinds, shades, screens or
other fixtures must be of a quality, type, design and color, and attached in
the manner approved by Landlord. All electrical fixtures hung in offices or
spaces along the perimeter of the Premises must be of a quality, type, design
and bulb color approved by Landlord unless the prior consent of Landlord has
been obtained for other lamping.

          3. No sign,
advertisement, notice or other lettering shall be exhibited, inscribed, painted
or affixed by any tenant on any part of the outside of the Premises or Building
or on the inside of the Premises if the same can be seen from the outside of
the Premises without the prior written consent of Landlord except that the name
of any tenant may appear on the entrance door of the Premises on a sign, the
size, color and style of which shall be acceptable to Landlord. In the event of
the violation of the foregoing by a tenant, if such tenant has refused to
remove same after reasonable notice from Landlord, Landlord may remove same
without any liability, and may charge the expense incurred by such removal to
such tenant.

B - 1

          4. The
exterior windows and doors that reflect or admit light and air into the
Premises or 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 by placed on the window sills or on the peripheral air
conditioning enclosures, if any.

          5. 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,
nor shall any article obstruct any air-conditioning supply or exhaust.

          6. The
water and wash closets and other plumbing fixtures shall not be used for any
purposes other than those for which they were constructed, and no sweepings,
rubbish, rags, acids or other substances shall be deposited therein. All
damages resulting from any misuse of the fixtures shall be borne by such
tenant. 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. 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.

          7. Subject
to any provisions of the lease of any tenant to the contrary, no tenant shall
mark, paint, drill into, or in any way deface any part of its premises or the
Building. No boring, cutting or stringing of wires shall be permitted, except
with the prior written consent of Landlord, and as Landlord may direct.

          8. No space
in the Building shall be used for manufacturing, for the storage of
merchandise, or for the sale of merchandise, goods or property of any kind at
auction or otherwise.

          9. Tenants
shall not make, or permit to be made, any unseemly or disturbing noises or
disturb or interfere with occupants of this or neighboring buildings or
premises or those having business with them whether by the use of any musical
instrument, radio, television set, talking machine, unmusical noise, whistling,
singing, or in any other way.

          10.
Tenants, and the employees, agents, contractors, visitors and licensees of
tenants, shall not at any time bring or keep upon the premises of any tenant
any inflammable, combustible or explosive fluid, chemical or substance or other
hazardous materials, except such as are incidental to usual office occupancy
and then only in a safe manner that complies with all Requirements of Law and
all applicable leases.

          11. No
additional locks or bolts of any kind shall be placed upon any of the doors or
windows by any tenant, nor shall any changes be made in existing locks or the
mechanism thereof, unless such tenant promptly provides Landlord with the key
or combination thereto. Such tenant must, upon the termination of its tenancy,
return to

B - 2

Landlord all keys of stores, offices and toilet rooms, and in the event
of the loss of any keys furnished at Landlord’s expense, such tenant shall pay
to Landlord the cost thereof.

          12. No bicycles,
vehicles or animals of any kind except for seeing eye dogs shall be brought
into or kept by any tenant in or about the premises of any tenant or the
Building.

          13. All
removals, or the carrying in or out of any safes, freight, furniture or bulky
matter of any description must take place in the manner and during the hours
which Landlord or its agent may determine from time to time. Landlord reserves
the right to inspect all safes, freight or other bulky articles to be brought
into the Building and to exclude from the Building all safes, freight or other
bulky articles which violate any of these Rules and Regulations or the Lease.
The persons employed to move safes and other heavy objects shall be acceptable
to Landlord and, if so required by law, shall hold a Master Rigger’s license.
Arrangements must be made between Landlord and each tenant for moving large
quantities of furniture and equipment by such tenant into or out of the
Building. All 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 such tenant to Landlord, on demand.

          14. No
tenant shall occupy or permit any portion of its premises to it to be occupied
as an office for a public stenographer or typist, or for the possession,
storage, manufacture, or sale of liquor, narcotics, dope, or as a barber or
manicure shop, or as and employment bureau. No tenants shall engage or pay any
employees on its premises, except those actually working for such tenant at its
Premises, nor advertise for labor giving an address at the Premises.

          14. Tenants
shall not purchase spring water, ice, towels or other like service, or accept
barbering or bootblacking services at the Premises, from any company or persons
not approved by Landlord, which approval shall not be unreasonably withheld or
delayed, and at hours and under regulations other than as reasonably fixed by
Landlord.

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

          17.
Landlord reserves the right to exclude from the Building between the hours or 6
p.m. and 8 a.m. and at all hours on days other than Business Days all persons
who do not present a pass to the Building signed or approved by Landlord and
Landlord may require any person admitted to or leaving the Building to submit
appropriate identification. Each tenant shall be responsible for all persons
for whom a pass shall be issued at the request of a tenant and shall be liable
to Landlord for all acts and omissions of such persons. Any person whose
presence in the Building at any time shall, in the sole 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.

B - 3

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. 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. 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 or any other Rule or Regulation.

          18. Tenant
shall, at its expense, provide artificial light, power and water for the
employees of Landlord while doing janitor service or other cleaning, and in
making repairs or alterations to the Premises.

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

          20.
Canvassing, soliciting and peddling in the Building is prohibited and tenants
shall cooperate to prevent the same.

          21. There
shall not be used in any space, or in the public halls of the Building, either
by tenants or by jobbers or others, in the delivery or receipt of merchandise,
any hand trucks, except those equipped with rubber tires and side guards.

          22. Except
as specifically provided in the applicable lease of a tenant, tenants shall not
do any cooking, conduct any restaurant, luncheonette or cafeteria for the sale
or service of food or beverages to their employees or to others, or cause or
permit any odors of cooking or other processes or any unusual or objectionable
odors to emanate from their premises. No tenant shall permit the delivery of
any food or beverage to its premises, except by such persons delivering the
same as shall be approved by Landlord.

          23. All
entrance doors in tenants’ premises shall be left locked and all windows shall
be left closed by tenants when the tenants’ premises are not in use. Tenants,
before closing and leaving their premises at any time, shall turn out all
lights.

          24.
Landlord shall have the right to require that all messengers and other Persons
delivering packages, papers and other materials to a tenant (i) be directed to
deliver such packages, papers and other materials to a Person designated by
Landlord who will

B - 4

distribute the same to such tenant or (ii) be escorted by a person
designated by Landlord to deliver the same to such tenant.

          25.
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 each tenant’s premises. If, in the judgment of Landlord, it
is necessary to distribute the concentrated weight of any heavy object, the
work involved in such distribution shall be done at the expense of such tenant
and in such manner as Landlord shall determine.

          26. No
machinery or mechanical equipment other than ordinary business machines may be
installed or operated in tenants’ premises without Landlord’s prior written
consent, and in no case (even where the same are of a type so excepted or as so
consented Landlord) shall any machines or mechanical equipment be so placed or
operated as to disturb other tenants; machines and mechanical equipment which
may be permitted to be installed and used in tenants’ 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.

          27. Nothing
shall be done or permitted in any tenant’s Premises, and nothing shall be
brought into or kept in the 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 any tenant 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.

B - 5

SCHEDULE C

CONTRACTOR LIST

C- 1

SCHEDULE C

SUBCONTRACTOR’S LIST

	
  

 	
  

 
	
 DEMOLITION

 	
 Avanti
 Demolition & Carting Corp.

 
	
  

 	
 Fortune
 Interior Diamanting Corp.

 
	
  

 	
 Liberty
 Contracting Corp.

 
	
  

 	
 Rite-Way
 Internal Removal, Inc.

 
	
  

 	
  

 
	
 CONCRETE:

 	
 Biordi, Inc.

 
	
  

 	
 Cirocco
 Ozzino Contracting, Inc.

 
	
  

 	
 RCC Concrete
 Corp.

 
	
  

 	
  

 
	
 STEEL:

 	
 Burgess
 Steel Products Corp.

 
	
  

 	
 Koenig Iron
 Works, Inc.

 
	
  

 	
 Kraman Iron
 Works, Inc.

 
	
  

 	
 Northeastern
 Fabricators, Inc.

 
	
  

 	
  

 
	
 MILLWORK:

 	
 Bauerschmidt
 & Sons, Inc.

 
	
  

 	
 MTD
 Furniture Corp.

 
	
  

 	
 Nordic
 Interior, Inc.

 
	
  

 	
 H&H
 Woodworking

 
	
  

 	
  

 
	
 ARCHITECTURAL
 METAL & GLASS

 	
 A-Val
 Architectural Metal Corp.

 
	
  

 	
 Coordinated
 Metals, Inc.

 
	
  

 	
 D&P
 Service & Sales, Inc.

 
	
  

 	
 Metralite
 Industries, Inc.

 
	
  

 	
  

 
	
 DRYWALL
 & CARPENTRY:

 	
 Curtis
 Partition Corp.

 
	
  

 	
 Dejil
 Systems, Inc.

 
	
  

 	
 Nastasi
 White Inc.

 
	
  

 	
 Superior
 Acoustics, Inc.

 
	
  

 	
 Sweeney
 & Harkin Carpentry & Drywall Corp.

 
	
  

 	
 Varick
 Drywall, Inc.

 
	
  

 	
  

 
	
 ACOUSTICAL
 CEILINGS:

 	
 Nastasi
 White, Inc.

 
	
  

 	
 Superior
 Acoustics, Inc.

 
	
  

 	
 Varick
 Drywall, Inc.

 
	
  

 	
 National
 Acoustics, Inc.

 
	
  

 	
  

 
	
 STONE WORK:

 	
 Amadeus
 Marble & Granite Corp.

 
	
  

 	
 Cathedral
 Marble & Granite, Inc.

 
	
  

 	
 William
 Erath & Sons, Inc.

 
	
  

 	
 Interior
 Design Flooring Corp.

 

	
  

 	
  

 
	
 FLOORING
 & BASE:

 	
 Commercial
 Flooring Specialist Ltd.

 
	
  

 	
 Interior
 Design Flooring Corp.

 
	
  

 	
 Pyramid
 Floor Covering, Inc.

 
	
  

 	
  

 
	
 PAINTING
 & WALLCOVERING:

 	
 Bevmax
 Painting Corp.

 
	
  

 	
 Bond
 Painting Corp.

 
	
  

 	
 New York
 Painting

 
	
  

 	
 State
 Painting

 
	
  

 	
  

 
	
 ACCESS
 FLOORING:

 	
 Computer
 Floors, Inc.

 
	
  

 	
 Raised
 Computer Floors, Inc.

 
	
  

 	
 Raised Floor
 Installation, Inc.

 
	
  

 	
  

 
	
 H.V.A.C.:

 	
 B.P. Air
 Conditioning Corp.

 
	
  

 	
 Nelson Air
 Device Corp.

 
	
  

 	
 Penguin Air
 Conditioning Corp.

 
	
  

 	
 P.J.
 Mechanical Corp.

 
	
  

 	
 React
 Industries, Inc.

 
	
  

 	
 Wyant Air
 Conditioning Corp.

 
	
  

 	
 Manhattan
 Mechanical

 
	
  

 	
  

 
	
 PLUMBING:

 	
 George
 Breslaw & Sons, Inc.

 
	
  

 	
 Lab Plumbing
 & Heating Co., Inc.

 
	
  

 	
 Par Plumbing
 Company, Inc.

 
	
  

 	
 A.S.A.
 Plumbing, Inc.

 
	
  

 	
  

 
	
 SPRINKLERS:

 	
 Abco Peerless
 Sprinkler Corp.

 
	
  

 	
 Grinell Fire
 Protection Systems

 
	
  

 	
 National
 Sprinkler Corp.

 
	
  

 	
 Sirina Fire
 Protection Corp.

 
	
  

 	
 Triangle
 Fire Production Corp.

 
	
  

 	
  

 
	
 ELECTRICAL:

 	
 Adco
 Electrical Corp.

 
	
  

 	
 Albros
 Electric Corp.

 
	
  

 	
 Forest
 Electric

 
	
  

 	
 Robert B.
 Samuels, Inc.

 
	
  

 	
 Zwicker
 Electric Co.

 
	
  

 	
 Intek
 Electric

 

SCHEDULE D

LANDLORD’S WORK

          The
following is the “Landlord’s Work” that Landlord shall Substantially Complete
at the Premises prior to the dates set forth below (subject to the terms and
conditions of Article 19):

	
  

 	
  

 
	
 1.

 	
 Landlord
 shall install and/or remove radiators, if necessary, so that they are uniform
 throughout the Premises (prior to December 31, 1999).

 
	
  

 	
  

 
	
 2.

 	
 Landlord
 shall repair an/or replace all windows that have been modified to accept
 exhaust duct work prior to (December 31, 1999).

 
	
  

 	
  

 
	
 3.

 	
 Landlord
 shall provide a sprinkler loop as required by code and remove existing
 sprinklers (within thirty (30) days of Commencement Date).

 

D- 1

SCHEDULE E

HVAC SPECIFICATIONS

          The
Building’s HVAC System shall be capable of maintaining the following
temperature conditions within the Premises during regular business operating
hours specified in the Lease: (a) a maximum of 73 degrees Fahrenheit (±2°) dry
bulb and 50% relative humidity when outdoor conditions do not exceed 93 degrees
Fahrenheit dry bulb, and 73 degrees Fahrenheit wet bulb during the cooling
season of May 1 through October 15, and (b) a minimum of 70 degrees Fahrenheit
(±2°) dry bulb when outdoor conditions are 0 degrees Fahrenheit dry bulb during
the heating season of October 16 through April 30. During the heating season of
October 16 through April 30, cooling shall be provided from
waterside-economizer cooling at no cost to Tenant, provided, that,
notwithstanding the foregoing, to the extent the economizer coil is unable to
provide sufficient cooling, compressor cooling from the condenser water system
shall be provided at Tenant’s sole cost and expense based upon electricity as
shown on the electric meter or meters. Such charges for electricity shall be
payable by Tenant upon demand and shall constitute Additional Rent. Landlord
shall operate the condenser water system on Business Days from 8:00 a.m. to
6:00 p.m. on a year round basis.

          The above
specifications are based upon a maximum population density of one person per
100 square feet of usable area, a maximum electric heat gain of 6 watts per
square foot of rentable area and a supply of fresh air as required by the
applicable state and local building codes. Landlord shall not be responsible
for the proper performance of such HVAC system if the Premises (or any room or
area thereof) shall be subjected to a greater population density or a greater
heat gain than above specified, or if the windows and the public corridor
entrance doors of the Premises shall not be kept closed, or if the blinds shall
not be lowered in windows of the Premises, or if the tenant improvements in the
Premises are not constructed in a manner so as to maximize the efficiency of
the Building’s HVAC system.

E- 1

SCHEDULE F

CLEANING SPECIFICATIONS

SCHEDULE OF CLEANING

          Janitorial
and Day services will be provided. Monday through Friday, excluding union
and/or legal holidays

	
  

 	
  

 	
  

 
	
 A.

 	
 MAIN LOBBY

 
	
  

 	
  

 	
  

 
	
  

 	
 1.

 	
 Keep
 cigarette urns and ashtrays clean, replace with fresh sand as necessary.
 Contractor will supply sand.

 
	
  

 	
  

 	
  

 
	
  

 	
 2.

 	
 Dust and
 wipe polish all sand urns, if applicable.

 
	
  

 	
  

 	
  

 
	
  

 	
 3.

 	
 Hose wash
 all rubber mats as needed, and/or vacuum carpet mats.

 
	
  

 	
  

 	
  

 
	
  

 	
 4.

 	
 Set our
 rubber mats and/or carpet mats on rainy or snowy days, day or night.

 
	
  

 	
  

 	
  

 
	
  

 	
 5.

 	
 Clean and
 polish mail depository and all related metal and trim.

 
	
  

 	
  

 	
  

 
	
  

 	
 6.

 	
 Wash stone
 floors such as marble terrazzo and travertine, of the lobby as needed daily
 with machine buffing nightly.

 
	
  

 	
  

 	
  

 
	
  

 	
 7.

 	
 Clean
 Directory boards.

 
	
  

 	
  

 	
  

 
	
  

 	
 8.

 	
 Clean all
 glass entrance doors.

 
	
  

 	
  

 	
  

 
	
  

 	
 9.

 	
 Remove all
 foreign matter stuck to floor.

 
	
  

 	
  

 	
  

 
	
  

 	
 10.

 	
 Wash all
 marble walls as needed or directed by management.

 
	
  

 	
  

 	
  

 
	
  

 	
 11.

 	
 Clean
 elevator doors and saddle tracks.

 
	
  

 	
  

 	
  

 
	
  

 	
 12.

 	
 Damp wipe
 elevator cab interiors as needed throughout the day.

 
	
  

 	
  

 	
  

 
	
 B.

 	
 STAIRWAYS

 
	
  

 	
  

 	
  

 
	
  

 	
 1

 	
 Sweep down
 all public stairways.

 
	
  

 	
  

 	
  

 
	
  

 	
 2

 	
 Remove all
 marks from floors, walls and doors weekly.

 

F- 1

	
  

 	
  

 	
  

 
	
 C.

 	
 EXTERIOR

 
	
  

 	
  

 	
  

 
	
  

 	
 1.

 	
 Sweep and
 hose sidewalks as necessary, weather permitting; remove snow during regular
 working hours, as necessary.

 
	
  

 	
  

 	
  

 
	
 D.

 	
 ELEVATORS

 
	
  

 	
  

 	
  

 
	
  

 	
 1.

 	
 Police
 elevators to be kept clean at all times

 
	
  

 	
  

 	
  

 
	
  

 	
 2.

 	
 Damp wipe
 and polish exterior doors and interiors of all cabs.

 
	
  

 	
  

 	
  

 
	
  

 	
 3.

 	
 Remove
 fingermarks from all public elevator doors.

 
	
  

 	
  

 	
  

 
	
  

 	
 4.

 	
 Clean all elevator
 cab door saddles.

 
	
  

 	
  

 	
  

 
	
  

 	
 5.

 	
 Clean all
 lighting fixtures in elevators.

 
	
  

 	
  

 	
  

 
	
  

 	
 6.

 	
 Wash and wax
 all cap floor nightly ardor vacuum carpet nightly, as necessary.

 
	
  

 	
  

 	
  

 
	
 E.

 	
 FREIGHT ELEVATORS

 
	
  

 	
  

 	
  

 
	
  

 	
 1.

 	
 Clean and
 sweep outside entranceway to Service elevator.

 
	
  

 	
  

 	
  

 
	
  

 	
 2.

 	
 Keep
 elevator cap in clean and neat condition.

 
	
  

 	
  

 	
  

 
	
  

 	
 3.

 	
 Clean and
 polish all elevator door saddles on all floors weekly.

 
	
  

 	
  

 	
  

 
	
  

 	
 4.

 	
 Clean and
 polish all elevator cab walls weekly.

 
	
  

 	
  

 	
  

 
	
  

 	
 5.

 	
 Clean and
 polish all metal weekly.

 
	
  

 	
  

 	
  

 
	
  

 	
 6.

 	
 Clean
 exteriors of elevator doors and inside door bucks on all floors once per
 month.

 
	
  

 	
  

 	
  

 
	
 F.

 	
 TENANT OFFICE AREAS

 
	
  

 	
  

 	
  

 
	
  

 	
 1.

 	
 Sweep and
 dust mop all composition floor tile.

 
	
  

 	
  

 	
  

 
	
  

 	
 2.

 	
 Vacuum all
 carpeting once per week and carpet sweep the remaining four nights.

 
	
  

 	
  

 	
  

 
	
  

 	
 3.

 	
 Empty
 wastepaper baskets and bring materials to a designated area in the building.

 
	
  

 	
  

 	
  

 
	
  

 	
 4.

 	
 Empty and
 wipe all ashtrays.

 

F- 2

	
  

 	
  

 	
  

 
	
  

 	
 5.

 	
 Dust all
 furniture fixtures, telephones and window sills, using treated cloths.

 
	
  

 	
  

 	
  

 
	
  

 	
 6.

 	
 Dust all
 chairs, rails, trim, etc. within an arm’s length reach weekly.

 
	
  

 	
  

 	
  

 
	
  

 	
 7.

 	
 Dust all
 baseboards weekly.

 
	
  

 	
  

 	
  

 
	
  

 	
 8.

 	
 Wash and
 clean all water fountains and coolers.

 
	
  

 	
  

 	
  

 
	
  

 	
 9.

 	
 Keep locker
 and slop sink rooms in a clean and orderly condition.

 
	
  

 	
  

 	
  

 
	
 G.

 	
 HIGH DUSTING OFFICE AREAS

 

          All high
dusting will be done once every three (3) months, which will include the
following:

	
  

 	
  

 	
  

 
	
  

 	
 1.

 	
 Dust all
 pictures, frames, charts, graphs and similar wall hangings not reached during
 nightly cleaning.

 
	
  

 	
  

 	
  

 
	
  

 	
 2.

 	
 Dust all
 vertical surfaces such as walls, partitions, ventilating louvers, fresh air
 grills, window blinds and others not reached during nightly cleaning.

 
	
  

 	
  

 	
  

 
	
  

 	
 3.

 	
 Dust all
 overhead pipes, sprinklers, etc.

 
	
  

 	
  

 	
  

 
	
  

 	
 4.

 	
 Dust all
 window frames.

 
	
  

 	
  

 	
  

 
	
 H.

 	
 PUBLIC TOILET PERIODIC CLEANING

 
	
  

 	
  

 	
  

 
	
  

 	
 1.

 	
 Sweep, wet
 mop and rinse clean all flooring with a germicidal cleaning solution.

 
	
  

 	
  

 	
  

 
	
  

 	
 2.

 	
 Wash and
 polish all mirrors, powder shelves, bright work, enameled surfaces, etc.,
 including flushometers, piping and toilet seat hinges.

 
	
  

 	
  

 	
  

 
	
  

 	
 3.

 	
 Wash and
 wipe dry both sides of all toilet seats with germicidal cleansing solution.

 
	
  

 	
  

 	
  

 
	
  

 	
 4.

 	
 Wipe clean
 all toilet tissue, soap, towel and sanitary napkin dispensers.

 
	
  

 	
  

 	
  

 
	
  

 	
 5.

 	
 Wash and
 disinfect all basins, bowls, and urinals.

 
	
  

 	
  

 	
  

 
	
  

 	
 6.

 	
 Dust all
 partitions, tile walls, enamel surfaces, dispensers and receptacles.

 
	
  

 	
  

 	
  

 
	
  

 	
 7.

 	
 Empty and
 clean paper towel and sanitary napkin disposal receptacles.

 
	
  

 	
  

 	
  

 
	
  

 	
 8.

 	
 Remove
 wastepaper and refuse to a designated area.

 

F- 3

	
  

 	
  

 	
  

 
	
  

 	
 9.

 	
 Fill toilet
 tissue holders, soap dispensers, towel dispensers, and sanitary napkin
 dispensers (fill sanitary dispensers during business hours as necessary). All
 lavatory supplies to be provided by ISS for multi-tenant floors, all lavatory
 supplies to be provided by ISS and billed to tenant on full tenant floors.

 
	
  

 	
  

 	
  

 
	
 I.

 	
 PUBLIC LIGHTING

 
	
  

 	
  

 	
  

 
	
  

 	
 Provide
 supplies and materials excluding specialty bulbs for building exterior.

 
	
  

 	
  

 	
  

 
	
 J.

 	
 DAY PORTER

 
	
  

 	
  

 	
  

 
	
  

 	
 1.

 	
 Police
 entire lobby area and elevator cabs.

 
	
  

 	
  

 	
  

 
	
  

 	
 2.

 	
 Police men’s
 public toilets on multi-tenant floors to fill toilet tissue, soap, and towel
 dispensers.

 
	
  

 	
  

 	
  

 
	
  

 	
 3.

 	
 Clean
 basement corridors and utility rooms.

 
	
  

 	
  

 	
  

 
	
  

 	
 4.

 	
 Police
 employees’ locker rooms.

 
	
  

 	
  

 	
  

 
	
  

 	
 5.

 	
 Sweep and
 hose sidewalks, as necessary, weather permitting; remove snow during regular
 working hours, as necessary.

 
	
  

 	
  

 	
  

 
	
  

 	
 6.

 	
 Set out
 rubber mats or carpet mats on rainy days; keep mats in clean condition.

 
	
  

 	
  

 	
  

 
	
  

 	
 7.

 	
 Sweep and
 dust all stairways and fire towers weekly; dust all handrails, spindles, and
 stair risers weekly wet mop stairs monthly.

 
	
  

 	
  

 	
  

 
	
  

 	
 8.

 	
 Clean
 mechanical equipment areas when so directed by OWNER.

 
	
  

 	
  

 	
  

 
	
  

 	
 9.

 	
 Clean roof
 setbacks and drains when so requested by OWNER.

 
	
  

 	
  

 	
  

 
	
  

 	
 10.

 	
 Keep frames
 on building entrance doors in clean condition.

 
	
  

 	
  

 	
  

 
	
  

 	
 11.

 	
 Clean
 standpipes and sprinkler connections as necessary.

 
	
  

 	
  

 	
  

 
	
  

 	
 12.

 	
 Wipe down
 exterior metal work; marble etc. of building entrance.

 
	
  

 	
  

 	
  

 
	
 K.

 	
 DAY SERVICE-DAY MATRON

 
	
  

 	
  

 	
  

 
	
  

 	
 Duties of
 Day Matron Monday through Friday, excluding Union and/or Legal Holidays:

 
	
  

 	
  

 	
  

 
	
  

 	
 1.

 	
 Police
 ladies’ room on multi-tenant floors, to keep them in clean condition and to
 fill toilet tissue, soap and towel dispensers.

 
	
  

 	
  

 	
  

 
	
  

 	
 2.

 	
 Fill
 sanitary napkin dispensers.

 

F- 4

	
  

 	
  

 	
  

 
	
  

 	
 3.

 	
 Collect-coins
 from sanitary napkin dispensers and turn proceeds over to duly authorized
 representative.

 
	
  

 	
  

 	
  

 
	
 L.

 	
 WINDOW GLASS AND EXTERIOR CLEANING

 
	
  

 	
  

 	
  

 
	
  

 	
 1.

 	
 Clean
 windows inside and outside four times per year.

 
	
  

 	
  

 	
  

 
	
  

 	
 2.

 	
 Clean lobby
 glass transoms monthly.

 
	
  

 	
  

 	
  

 
	
  

 	
 3.

 	
 Clean
 directory glass and mail chute glass in lobby daily.

 

F- 5

Mortgage on the Fee

SUBORDINATION,

NON-DISTURBANCE AND ATTORNMENT AGREEMENT

ONE PARK AVENUE TENANT LLC

Landlord

COTY INC.

Tenant

ONE PARK AVENUE FEE LLC

Superior Lessor

ARE ONE PARK AVENUE, LLC

Lender

Premises:

Fourth and Fifth Floors

One Park Avenue

New York, New York

Record and Return to:

James J. Thomas, Esq.

Windels, Marx, Davis & Ives

156 West 56th Street

New York, New York 10019

SUBORDINATION,

NON-DISTURBANCE AND ATTORNMENT AGREEMENT

          This
SBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT dated this 29th
day of October, 1999 among ONE PARK AVENUE TENANT LLC, a New York limited
liability company having an office c/o Argent Ventures LLC, 551 Fifth Avenue,
34th Floor, New York, New York 10176 (“Landlord”), COTY INC. a Delaware
corporation having an office at 1325 Avenue of the Americas, 34th Floor, New
York, New York 10019 (“Tenant”), ONE PARK AVENUE FEE LLC (“Superior
Lessor”) and ARE ONE PARK AVENUE, LLC (“Lender”).  

WITNESSETH:

          WHEREAS, on
November 10, 1998, Lender made a loan to the Superior Lessor (the “Loan”),
successor in interest to One Park Fee Associates Limited Partnership secured by
a mortgage lien and security interest (the “Mortgage”) encumbering the Superior
Lessor’s interest in the real property and improvements known as and located at
One Park Avenue, New York, New York as more particularly described on Exhibit
A hereto (the “Mortgaged Property”);

          WHEREAS,
Landlord and Tenant are parties to that certain Lease Agreement affecting a
portion of the Mortgaged Property (such portion, the “Premises”) dated
October 29, 1999 (the “Lease”);

          WHEREAS, as
security for its obligations in respect of the Loan Landlord has assigned to
Lender all of Landlord’s right, title and interest in an to all existing and
future leases affecting the Mortgaged Property, including the Lease, and the
rents payable thereunder;

          WHEREAS,
the Lease is subject and subordinate to the Mortgage, and Tenant’s right, title
and interest in, to and under the Lease are subject and subordinate to Lender’s
right, title and interest in, to and under the Mortgage;

          WHEREAS,
Tenant has requested that Lender give certain assurances that, subject to the
terms and conditions of this Agreement, Tenant’s possession of the Premises
will not be disturbed by reason of foreclosure of the lien of the Mortgage;

          WHEREAS,
Lender is only willing to provide such assurances to Tenant upon and subject to
the express terms and conditions of this Agreement; and

          WHEREAS,
Superior Lessor and Tenant have agreed to execute and deliver this Agreement to
Lender.

          NOW,
THEREFORE, in consideration of the mutual premises herein contained, and for
other good and valuable consideration, the receipt and legal sufficiency of
which are hereby acknowledged, the parties hereto do mutually covenant and
agree as follows:

	
  

 	
  

 
	
 1.

 	
 The Lease is
 and at all times hereafter shall be subject and subordinate in all respects
 to the Mortgage and to all renewals, modifications, substitutions,
 consolidations and extensions thereof, and to all other future mortgages
 affecting the Mortgaged Property held by Lender. Lender hereby consents to
 the Lease.

 

	
  

 	
  

 
	
 2.

 	
 Any
 provision in the Lease to the contrary notwithstanding, a notice by Tenant to
 Landlord of a default under the Lease by Landlord, which default is of such a
 nature as to give Tenant a right to terminate the Lease, to reduce the rent
 payable under the Lease or to credit or offset against future rents, shall be
 effective only if: (a) such notice is also given to Lender; and (b) Lender
 shall not have cured or remedied such default by the later to occur of: (i)
 30 days after Lender’s receipt of such notice; or (ii) 30 days after the
 expiration of any applicable notice or grace period under the Lease; provided,
 however, that if: (A) such default is not reasonably capable of being
 cured within the applicable period; and (B) Lender shall diligently proceed
 with its efforts to cure, Lender shall have a reasonable additional period to
 cure such default. Lender shall have the right, but not the obligation, to
 remedy or cure any such default.

 
	
  

 	
  

 
	
 3.

 	
 So long as
 Tenant is not in default in the payment of rent, additional rent or other
 charges, or in the performance of any of the terms, covenants or conditions
 of the Lease, such default continuing beyond any applicable notice or grace period,
 Tenant’s occupancy of the Premises during the original or any renewal term of
 the Lease or any extension thereof shall not be disturbed by Lender by reason
 of foreclosure of the Mortgage, the acceptance by Lender or its designee of a
 deed in lieu of foreclosure, or the exercise of any remedy available at law,
 in equity or under the Mortgage. Lender will not join Tenant as a party
 defendant in any action or proceeding exercising Lender’s rights and remedies
 arising upon any default under the Mortgage unless applicable law requires
 Tenant to be made a party thereto as a condition to proceeding against
 Landlord or exercising such rights and remedies. In the latter case, Lender
 may join Tenant as a defendant in such action only for such purpose and not to
 terminate the Lease or otherwise adversely affect Tenant’s rights under the
 Lease or this Agreement in such action, and Tenant shall be entitled to
 occupy the Premises (including, to the extent Tenant has properly exercised
 its options under the Lease, the Extension Space, Option Space and Offering
 Space, as such terms are defined under the Lease), and enjoy all of its right
 and interest under the Lease for the full term thereof, including any
 extended or renewal term provided therein and properly exercised.

 
	
  

 	
  

 
	
 4.

 	
 Lender’s
 receipt of the rents payable by Tenant under the Lease, pursuant to the
 Mortgage or any assignment of the Lease, shall not obligate Lender to perform
 Landlord’s obligations under the Lease. Tenant shall make all payments under
 the Lease to Lender or its designee upon receipt of written notice that such
 right has accrued, and Tenant agrees not to prepay any sums payable by Tenant
 under the Lease. Lender’s receipt of such rent shall not relieve Landlord of
 its obligations under the Lease, and Tenant shall continue to look solely to
 Landlord for performance of such obligations.

 
	
  

 	
  

 
	
 5.

 	
 Upon
 Lender’s succession to the rights of Landlord under the Lease, whether
 through possession, termination or cancellation of the Lease, surrender,
 assignment, judicial action, subletting, foreclosure, delivery of a deed in
 lieu of foreclosure or otherwise, Tenant will attorn to and recognize Lender
 as the landlord under the Lease, and Lender will accept such attornment and
 recognize Tenant’s rights of possession and use of the Premises in accordance
 with the terms of the Lease with the same force and effect as if the Lease
 was originally between Lender, as landlord, and Tenant, as tenant, subject to
 Paragraph 6 of this Agreement, upon the then executory provisions of
 the Lease as it

 

2

	
  

 	
  

 
	
  

 	
 now exists
 or may hereafter be amended by an amendment thereof consented to in writing
 by the Landlord, Lender and Tenant, as the case may be. Without further
 evidence of such attornment and acceptance, Tenant shall be bound by, and
 shall comply with, each and every term, provision, covenant and obligation
 contained in the Lease on Tenant’s part to be performed. Except as
 specifically provided for in Paragraph 6(g) of this Agreement, nothing
 contained in this Agreement, or in any other instrument including, without
 limitation, the Lease, shall impose upon Lender an obligation to complete or
 renovate the Premises for the benefit of Tenant. Tenant’s agreement to attorn
 shall not be construed as amending Landlord’s obligations under the Lease.

 

	
  

 	
  

 	
  

 
	
  

 	
 6.

 	
 Lender shall
 not in any way or to any extent be:

 

	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 liable for
any act or omission of any prior landlord (including Landlord) in
contravention of any provision of the Lease so long as Lender is not a
Related Party of One Park Avenue Tenant LLC. For the purposes of this
Agreement, “Related Party” shall mean with respect to any Person (as
such term is defined in the Lease) any corporation, partnership, limited
liability company or other entity which shall, and only for so long as such
entity continues to, control, be under the control of or be under common
control with such Person (the terms “control” and “controlling” as used with
respect to a Related Party shall mean the power to direct or cause the
direction of management and policy in an entity, whether through ownership of
a majority interest in such entity, voting rights or otherwise; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 subject to
 any offset, claim or defense which Tenant might have against any prior
 landlord (including Landlord);

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 bound by any
 rent or additional rent which Tenant might have paid more than 30 days in
 advance to any prior landlord (including Landlord);

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 bound by any
 agreement, surrender or modification of the Lease or of any Lease guaranty
 made without Lender’s prior written consent or any termination thereof which
 is not in accordance with the terms of the Lease;

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 in any way
 responsible for any security or other deposit which was delivered to
 Landlord, and not forfeited by Tenant, but which was not subsequently
 delivered to Lender so long as Lender is not a Related Party of One Park
 Avenue Tenant LLC;

 
	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 except as
 specifically provided for in Paragraph 6(g) of this Agreement, bound
 by any obligation to make any payment

 

3

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 to Tenant
 which was required to be made to any prior Landlord; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (g)

 	
 bound by any
 obligation to perform any work or to make improvements to the Premises except
 for (i) repairs, restoration and maintenance to the Premises and/or the
 Building pursuant to the provisions of Article 4, (ii) repairs to the
 Premises or any part thereof as a result of damage by fire or other casualty
 pursuant to this Lease, but only to the extent that such repairs can be
 reasonably made from the proceeds of any insurance (net of collection,
 enforcement and other costs) actually made available to Lender, (iii) repairs
 to the Premises and/or the Building as a result of a partial condemnation
 pursuant to Article 11, but only to the extent that such repairs can
 be reasonably made from the proceeds of any award (net of collection,
 enforcement and other costs) actually made available to such Lender (iv)
 Landlord’s Work set forth in Schedule D of the Lease, if Lender is a
 Related Party of One Park Avenue Tenant LLC, and (v) funding Landlord’s
 Contribution pursuant to the Lease, if Lender is a Related Party of One Park
 Avenue Tenant LLC.

 

Notwithstanding the provisions of Paragraph 6(f) and Paragraph
6(g)(v), if a Lender that is not a Related Party of One Park Avenue Tenant
LLC succeeds to the interest of the Landlord under the Lease and has not agreed
in writing to fund all or any portion of Landlord’s Contribution pursuant to
the Lease within sixty (60) days after receipt of either (x) a notice from
Tenant after such Lender succeeds to the interest of the Landlord under the
Lease of any prior failure of Landlord to fund Landlord’s Contribution or any
portion thereof under Section 41.1 (B) of the Lease (together with
copies of all requisitions for such disbursement(s) required under Section
41.1(B) of the Lease which Landlord so failed to fund) or (y) a requisition
for disbursement of Landlord’s Contribution under Section 41.1(B) of the
Lease after such Lender succeeds to the interest of Landlord under the Lease,
as the case may be, and/or thereafter does not promptly so fund, a right of
offset against such Lender shall be available with respect to Landlord’s
Contribution or portion thereof not funded, provided, that (a) with respect to
Landlord’s Contribution or portion thereof not funded due to Landlord’s failure
to disburse Landlord’s Contribution prior to such Lender’s succession to the
interest of Landlord (i) Tenant shall have sent Landlord any notice required
under the Lease related thereto, (ii) Tenant shall have notified Lender of
Landlord’s failure to disburse Landlord’s Contribution no later than five (5)
days (time being of the essence) after Landlord’s failure to fund Tenant’s
requisition for disbursement of Landlord’s Contribution as required under Section
41.1(B) of the Lease and (iii) Tenant is entitled to reimbursement for the
amounts set forth in such requisition and is not otherwise in default under the
Lease and (b) with respect to Landlord’s Contribution or portion thereof that
has not been previously requested of any Landlord prior to such Lender and that
such Lender has not agreed to fund and/or has not funded after such Lender’s
succession to the interest of Landlord, Tenant is entitled to reimbursement for
the amounts set forth in such requisition (it being understood that Tenant
shall still be required to submit requisitions as provided under Section
41.1(B) of the Lease) and is not otherwise in default under the Lease.

4

          7. If
Lender or its designee acquires title to the Mortgaged Property as a result of
foreclosure of the Mortgage, acceptance of a deed in lieu of foreclosure, or by
obtaining control of the Premises pursuant to the remedies available to Lender
at law, in equity, under the Mortgage, or otherwise, Tenant shall have no
recourse to any assets of Lender or such designee for any act or omission of
Lender or such designee in contravention of any provision of the Lease except
with respect to the Lender’s estate in the Mortgaged Property. Lender’s
acquisition of title to or control of the Mortgaged Property, or the performance
by Lender of any of the obligations of Landlord under the Lease, shall in no
event be construed as an assumption of the Lease by Lender. Upon Lender’s or
its designee’s acquisition of title to the Mortgaged Property, the Lease shall
be deemed automatically modified to include the provisions contained herein
notwithstanding any other provisions of the Lease.

          8. Tenant
shall execute such other documents as Lender, in its reasonable discretion, may
deem necessary or appropriate to evidence the subordination of the Lease to the
Mortgage; provided, however, that such documents neither conflict
with the provisions of this Agreement nor materially adversely affect the
parties’ rights or obligations under the Lease.

          9. Any
notice, demand, statement, request or consent given or made hereunder shall be
in writing and shall be deemed given on the next business day if sent by
Federal Express or other reputable overnight courier and designated for next
business day delivery, or on the third day following the day such notice is
deposited with the United States postal service first class certified mail,
return receipt requested, addressed to the addresses as set forth below, of the
party to whom such notice is to be given, or to such other address or
additional party as Landlord, Tenant or Lender, as the case may be, shall in
like manner designate in writing.

	
  

 	
  

 	
  

 
	
  

 	
 Copies of
 notices to Landlord to:

 
	
  

 	
  

 
	
  

 	
 One Park
 Avenue Tenant LLC

 
	
  

 	
 c/o Argent
 Ventures LLC

 
	
  

 	
 551 Fifth
 Avenue -34th Floor

 
	
  

 	
 New York, NY
 10176

 
	
  

 	
  

 
	
  

 	
 With a copy
 to:

 
	
  

 	
  

 
	
  

 	
 Squadron,
 Ellenoff, Plesent & Sheinfeld, LLP

 
	
  

 	
 551 Fifth
 Avenue

 
	
  

 	
 New York,
 New York 10176

 
	
  

 	
 Attention:
 Alan Katz, Esq.

 
	
  

 	
  

 
	
  

 	
 Copies of
 notice to Tenant to:

 
	
  

 	
  

 
	
  

 	
 Coty Inc.

 
	
  

 	
 1325 Avenue
 of the Americas -34th Floor

 
	
  

 	
 New York, New
 York 10019

 
	
  

 	
 Attention: 

 	
 Mr. Steven
 Ford

 
	
  

 	
  

 	
 Mr. Frank
 Suozzi

 

5

	
  

 	
  

 
	
  

 	
 With a copy
 to:

 
	
  

 	
 Davis Polk
 & Wardwell

 
	
  

 	
 450
 Lexington Avenue

 
	
  

 	
 New York,
 New York 10017

 
	
  

 	
 Attention:
 Thomas Patrick Dore, Jr., Esq.

 
	
  

 	
  

 
	
  

 	
 Copies of
 notice to Superior Lessor to:

 
	
  

 	
  

 
	
  

 	
 One Park
 Avenue Fee LLC

 
	
  

 	
 c/o Property
 Asset Management Inc.

 
	
  

 	
 3 World
 Financial Center -12th Floor

 
	
  

 	
 New York,
 New York 10285

 
	
  

 	
 Attention:
 Marguerite M. Brogan

 
	
  

 	
  

 
	
  

 	
 With a copy
 to:

 
	
  

 	
 Windels,
 Marx, Davis & Ives

 
	
  

 	
 156 West
 56th Street

 
	
  

 	
 New York,
 New York 10019

 
	
  

 	
 Attention:
 James J. Thomas, Esq.

 
	
  

 	
  

 
	
  

 	
 With an
 Additional Copy to:

 
	
  

 	
  

 
	
  

 	
 Hatfield
 Philips Inc.

 
	
  

 	
 285
 Peachtree Center Avenue

 
	
  

 	
 Marquis Two
 Tower, Suite 2300

 
	
  

 	
 Atlanta,
 Georgia 30303

 
	
  

 	
 Attention:
 Mr. Robert Hyla

 
	
  

 	
  

 
	
  

 	
 Copies of
 notice to Lender to:

 
	
  

 	
  

 
	
  

 	
 ARE One Park
 Avenue, LLC

 
	
  

 	
 c/o Property
 Asset Management Inc.

 
	
  

 	
 3 World
 Financial Center -12th Floor

 
	
  

 	
 New York,
 New York 10285

 
	
  

 	
 Attention:
 Marguerite M. Brogan

 
	
  

 	
  

 
	
  

 	
 With a copy
 to:

 
	
  

 	
  

 
	
  

 	
 Windels,
 Marx, Davis & Ives

 
	
  

 	
 156 West
 56th Street

 
	
  

 	
 New York,
 New York 10019

 
	
  

 	
 Attention:
 James J. Thomas, Esq.

 
	
  

 	
  

 
	
  

 	
 With an
 additional copy to:

 
	
  

 	
  

 
	
  

 	
 Hatfield
 Philips Inc.

 
	
  

 	
 285
 Peachtree Center Avenue

 
	
  

 	
 Marquis Two
 Tower, Suite 2300

 

6

	
  

 	
  

 
	
  

 	
 Atlanta,
 Georgia 30303

 
	
  

 	
 Attention:
 Mr. Robert Hyla

 

	
  

 	
  

 
	
 10.

 	
 This
 Agreement shall be binding upon and shall inure to the parties, their
 respective heirs, successors and assigns (including without limitation, any
 successor owner of the interest of the Superior Lessor, Lender or Landlord in
 the Mortgaged Property by reason of foreclosure of the Mortgage or any
 designee of Lender under any deed in lieu of foreclosure)

 
	
  

 	
  

 
	
 11.

 	
 This
 Agreement shall be governed by, and construed in accordance with the laws of
 the State in which the Mortgaged Property is located, without giving effect
 to conflict of laws, principles or otherwise.

 
	
  

 	
  

 
	
 12.

 	
 This
 Agreement may be executed in any number of counterparts and each such
 duplicate original shall be deemed to be an original.

 
	
  

 	
  

 
	
 13.

 	
 This
 Agreement may not be changed, amended or modified in any manner other than by
 an agreement in writing specifically referring to this Agreement and executed
 by the parties hereto.

 

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

7

          IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first above written.

	
  

 	
  

 	
  

 
	
 LENDER:

 	
 ARE ONE PARK AVENUE, LLC

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title

 
	
  

 	
  

 	
  

 
	
 LANDLORD:

 	
 ONE PARK AVENUE TENANT
 LLC,

 
	
  

 	
 a New York limited
 liability company

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/Andrew Penson

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name: Andrew Penson

 
	
  

 	
  

 	
 Title: Authorized
 Signatory

 
	
  

 	
  

 	
  

 
	
 SUPERIOR

 	
 ONE PARK AVENUE FEE LLC

 
	
 LESSOR:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title

 
	
  

 	
  

 	
  

 
	
 TENANT:

 	
 COTY INC., a Delaware
 corporation

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Francis X. Suozzi

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name: Francis X. Suozzi

 
	
  

 	
  

 	
 Title: Senior Vice
 President - Finance

 

          IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first above written. 

	
  

 	
  

 	
  

 
	
 LENDER:

 	
 ARE ONE PARK AVENUE, LLC

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Marguerite M. Brogan

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name: Marguerite M. Brogan

 
	
  

 	
  

 	
 Title: Authorized
 Signatory

 
	
  

 	
  

 	
  

 
	
 LANDLORD:

 	
 ONE PARK AVENUE TENANT
 LLC,

 
	
  

 	
 a New York limited
 liability company

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title

 
	
  

 	
  

 	
  

 
	
 SUPERIOR

 	
 ONE PARK AVENUE FEE LLC

 
	
 LESSOR:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Marguerite M. Brogan

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name: Marguerite M. Brogan

 
	
  

 	
  

 	
 Title: Authorized
 Signatory

 
	
  

 	
  

 	
  

 
	
 TENANT:

 	
 COTY INC., a Delaware
 corporation

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title

 

	
  

 	
  

 	
  

 
	
 STATE OF NEW YORK

 	
 )

 	
  

 
	
  

 	
 )

 	
 SS.

 
	
 COUNTY OF NEW YORK

 	
 )

 	
  

 

          On
the 29th day of October in the year 1999 before me, the
under signed, personally appeared Francis
X Suozzi; personally
known to me on the basis of satisfactory evidence to be the individual(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 capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the person
upon behalf of which the individual(s) acted, executed the instrument.

	
  

 	
  

 
	
  

 	
 /s/ Tanika
 Federico

 
	
  

 	
 TANIKA
 FEDERICO

 
	
  

 	
 Notary
 Public, State of New York

 
	
  

 	
 No.
 41-4990703

 
	
  

 	
 Qualified in
 Queens County

 
	
  

 	
 Commission
 Expires January 13, 2000

 

	
  

 	
  

 	
  

 
	
 STATE OF NEW YORK

 	
 )

 	
  

 
	
  

 	
 )

 	
 SS.

 
	
 COUNTY OF NEW YORK

 	
 )

 	
  

 

          On
the 29th day of October in the year 1999 before me, the
under signed, personally appeared Andrew
Penson, personally known
to me on the basis of satisfactory evidence to be the individual(s) whose name
is (are) subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the person
upon behalf of which the individual(s) acted, executed the instrument.

	
  

 	
  

 
	
  

 	
 /s/ Dianna
 L. Oppegard

 
	
  

 	
 DIANNA L.
 OPPEGARD

 
	
  

 	
 Notary
 Public, State of New York

 
	
  

 	
 No.
 24-4748622

 
	
  

 	
 Qualified in
 Kings County

 
	
  

 	
 Commission
 Expires August 31, 2001

 

	
  

 	
  

 	
  

 
	
 STATE OF NEW YORK

 	
 )

 	
  

 
	
  

 	
 )

 	
 SS.

 
	
 COUNTY OF NEW YORK

 	
 )

 	
  

 

          On
the ________ day of ___________ in the year _________________ before me, the
under signed, personally appeared ____________, personally
known to me on the basis of satisfactory evidence to be the individual(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 capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the person
upon behalf of which the individual(s) acted, executed the instrument.

 

	
  

 	
  

 	
  

 
	
 STATE OF NEW YORK

 	
 )

 	
  

 
	
  

 	
 )

 	
 SS.

 
	
 COUNTY OF NEW YORK )

 	
  

 	
  

 

          On
the 29th day of October in the year 1999 before me, the
under signed, personally appeared Marguerite
M. Brogan; personally
known to me on the basis of satisfactory evidence to be the individual(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 capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the person
upon behalf of which the individual(s) acted, executed the instrument.

	
  

 	
  

 
	
  

 	
 /s/
 ILLEGIBLE

 

	
  

 	
  

 	
  

 
	
 STATE OF NEW YORK

 	
 )

 	
  

 
	
  

 	
 )

 	
 SS.

 
	
 COUNTY OF NEW YORK )

 	
  

 	
  

 

          On
the ________ day of ____________ in the year _________________ before me, the
under signed, personally appeared ____________, personally
known to me on the basis of satisfactory evidence to be the individual(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 capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the person
upon behalf of which the individual(s) acted, executed the instrument.

	
  

 	
  

 	
  

 
	
 STATE OF NEW YORK

 	
 )

 	
  

 
	
  

 	
 )

 	
 SS.

 
	
 COUNTY OF NEW YORK )

 	
  

 	
  

 

          On
the 29th day of October in the year 1999 before me, the
under signed, personally appeared Marguerite
M. Brogan, personally known to me on the basis of
satisfactory evidence to be the individual(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 capacity(ies), and that by his/her/their signature(s) on
the instrument, the individual(s), or the person upon behalf of which the
individual(s) acted, executed the instrument.

	
  

 	
  

 
	
  

 	
 /s/
 ILLEGIBLE

 

EXHIBIT A

Legal Description

Exhibit
A

Premises

ALL that certain plot, 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 the corner
formed by the intersection of the northerly side of 32nd Street and the
easterly side of Park Avenue;

THENCE easterly along the
northerly side of 32nd Street, 230 feet;

THENCE northerly parallel
with Lexington Avenue, 197 feet 6 inches to the southerly side of 33rd Street;

THENCE westerly along the
southerly side of 33rd Street 230 feet to its intersection with the easterly
side of Park Avenue; and

THENCE
southerly along the easterly side of Park Avenue, 197 feet 6 inches to the
point or place of BEGINNING.

Mortgage on the Leasehold

SUBORDINATION,

NON-DISTURBANCE AND ATTORNMENT AGREEMENT

ONE PARK AVENUE TENANT LLC

Landlord

COTY INC.

Tenant

ARE ONE PARK AVENUE LLC

Lender

Premises:

Fourth and Fifth Floors

One Park Avenue

New York, New York

Record and Return to:

James J. Thomas, Esq.

Windels, Marx, Davis & Ives

156 West 56th Street

New York, New York 10019

SUBORDINATION,

NON-DISTURBANCE AND ATTORNMENT AGREEMENT

          This
SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT dated this _____ of October, 1999 among ONE PARK AVENUE TENANT LLC, a New York limited
liability company having an office c/o Argent Ventures LLC, 551 Fifth Avenue,
34th Floor, New York, New York 10176 (“Landlord”), COTY INC. a Delaware
corporation having an office at 1325 Avenue of the Americas, 34th Floor, New
York, New York 10019 (“Tenant”) and ARE ONE PARK AVENUE, LLC
(“Lender”).

WITNESSETH:

          WHEREAS,
on November 10, 1998, Lender made a loan to the Landlord (the “Loan”),
successor in interest to One Park Fee Associates Limited Partnership, secured
by a mortgage lien and security interest (the “Mortgage”) encumbering
the Landlord’s interest in the property and improvements known as and located
at One Park Avenue, New York, New York as more particularly described on Exhibit
A hereto (the “Mortgaged Property”);

          WHEREAS,
Landlord and Tenant are parties to that certain Lease Agreement affecting a portion of the Mortgaged Property (such portion, the “Premises”)
dated October 29th, 1999 (the “Lease”);

          WHEREAS,
as security for its obligations in respect of the Loan Landlord has assigned to
Lender all of Landlord’s right, title and interest in an to all existing and
future leases affecting the Mortgaged Property, including the Lease, and the
rents payable thereunder;

          WHEREAS,
the Lease is subject and subordinate to the Mortgage, and Tenant’s right, title
and interest in, to and under the Lease are subject and subordinate to Lender’s
right, title and interest in, to and under the Mortgage;

          WHEREAS,
Tenant has requested that Lender give certain assurances that, subject to the
terms and conditions of this Agreement, Tenant’s possession of the Premises
will not be disturbed by reason of foreclosure of the lien of the Mortgage;

          WHEREAS,
Lender is only willing to provide such assurances to Tenant upon and subject to
the express terms and conditions of this Agreement; and

          WHEREAS,
Landlord and Tenant have agreed to execute and deliver this Agreement to
Lender.

          NOW,
THEREFORE, in consideration of the mutual premises herein contained, and for
other good and valuable consideration, the receipt and legal sufficiency of
which are hereby acknowledged, the parties hereto do mutually covenant and
agree as follows:

	
  

 	
  

 
	
 1.

 	
 The Lease is
 and at all times hereafter shall be subject and subordinate in all respects
 to the Mortgage and to all renewals, modifications, substitutions,
 consolidations and extensions thereof, and to all other future mortgages
 affecting the Mortgaged Property held by Lender. Lender hereby consents to
 the Lease.

 

	
  

 	
  

 
	
 2.

 	
 Any
 provision in the Lease to the contrary notwithstanding, a notice by Tenant to
 Landlord of a default under the Lease by Landlord, which default is of such a
 nature as to give Tenant a right to terminate the Lease, to reduce the rent
 payable under the Lease or to credit or offset against future rents, shall be
 effective only if: (a) such notice is also given to Lender; and (b) Lender
 shall not have cured or remedied such default by the later to occur of: (i)
 30 days after Lender’s receipt of such notice; or (ii) 30 days after the
 expiration of any applicable notice or grace period under the Lease; provided,
 however, that if: (A) such default is not reasonably capable of being
 cured within the applicable period; and (B) Lender shall diligently proceed
 with its efforts to cure, Lender shall have a reasonable additional period to
 cure such default. Lender shall have the right, but not the obligation, to
 remedy or cure any such default.

 
	
  

 	
  

 
	
 3.

 	
 So long as
 Tenant is not in default in the payment of rent, additional rent or other
 charges, or in the performance of any of the terms, covenants or conditions
 of the Lease, such default continuing beyond any applicable notice or grace
 period, Tenant’s occupancy of the Premises during the original or any renewal
 term of the Lease or any extension thereof shall not be disturbed by Lender
 by reason of foreclosure of the Mortgage, the acceptance by Lender or its
 designee of a deed in lieu of foreclosure, or the exercise of any remedy
 available at law, in equity or under the Mortgage. Lender will not join
 Tenant as a party defendant in any action or proceeding exercising Lender’s
 rights and remedies arising upon any default under the Mortgage unless
 applicable law requires Tenant to be made a party thereto as a condition to
 proceeding against Landlord or exercising such rights and remedies. In the
 latter case, Lender may join Tenant as a defendant in such action only for
 such purpose and not to terminate the Lease or otherwise adversely affect
 Tenant’s rights under the Lease or this Agreement in such action, and Tenant
 shall be entitled to occupy the Premises (including, to the extent Tenant has
 properly exercised its options under the Lease, the Extension Space, Option
 Space and Offering Space, as such terms are defined under the Lease), and
 enjoy all of its right and interest under the Lease for the full term
 thereof, including any extended or renewal term provided therein and properly
 exercised.

 
	
  

 	
  

 
	
 4.

 	
 Lender’s
 receipt of the rents payable by Tenant under the Lease, pursuant to the
 Mortgage or any assignment of the Lease, shall not obligate Lender to perform
 Landlord’s obligations under the Lease. Tenant shall make all payments under
 the Lease to Lender or its designee upon receipt of written notice that such
 right has accrued, and Tenant agrees not to prepay any sums payable by Tenant
 under the Lease. Lender’s receipt of such rent shall not relieve Landlord of
 its obligations under the Lease, and Tenant shall continue to look solely to
 Landlord for performance of such obligations.

 
	
  

 	
  

 
	
 5.

 	
 Upon
 Lender’s succession to the rights of Landlord under the Lease, whether
 through possession, termination or cancellation of the Lease, surrender,
 assignment, judicial action, subletting, foreclosure, delivery of a deed in
 lieu of foreclosure or otherwise, Tenant will attorn to and recognize Lender
 as the landlord under the Lease, and Lender will accept such attornment and
 recognize Tenant’s rights of possession and use of the Premises in accordance
 with the terms of the Lease with the same force and effect as if the Lease
 was originally between Lender, as landlord, and Tenant, as tenant, subject to
 Paragraph 6 of this Agreement, upon the then executory provisions of
 the Lease as it now exists or may hereafter be amended by an amendment
 thereof consented to in writing by the Landlord, Lender and Tenant, as the
 case may be. Without further evidence of such attornment and acceptance,
 Tenant shall be bound by, and shall comply with, each and every term,
 provision, covenant and obligation contained in the Lease on Tenant’s part to
 be performed.

 

2

	
  

 	
  

 
	
  

 	
 Except as specifically
 provided for in Paragraph 6(g) of this Agreement, nothing contained in
 this Agreement, or in any other instrument including, without limitation, the
 Lease, shall impose upon Lender an obligation to complete or renovate the
 Premises for the benefit of Tenant. Tenant’s agreement to attorn shall not be
 construed as amending Landlord’s obligations under the Lease.

 
	
  

 	
  

 
	
 6.

 	
 Lender shall not in any
 way or to any extent be:

 

	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 liable for any act or
 omission of any prior landlord (including Landlord) in contravention of any
 provision of the Lease so long as Lender is not a Related Party of One Park
 Avenue Tenant LLC. For the purposes of this Agreement, “Related
 Party” shall
 mean with respect to any Person (as such term is defined in the Lease) any
 corporation, partnership, limited liability company or other entity which
 shall, and only for so long as such entity continues to, control, be under
 the control of or be under common control with such Person (the terms
 “control” and “controlling” as used with respect to a Related Party shall
 mean the power to direct or cause the direction of management and policy in
 an entity, whether through ownership of a majority interest in such entity,
 voting rights or otherwise;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 subject to any offset,
 claim or defense which Tenant might have against any prior landlord
 (including Landlord);

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 bound by any rent or
 additional rent which Tenant might have paid more than 30 days in advance to
 any prior landlord (including Landlord);

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 bound by any agreement,
 surrender or modification of the Lease or of any Lease guaranty made without
 Lender’s prior written consent or any termination thereof which is not in
 accordance with the terms of the Lease;

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 in any way responsible for
 any security or other deposit which was delivered to Landlord, and not
 forfeited by Tenant, but which was not subsequently delivered to Lender so
 long as Lender is not a Related Party of One Park Avenue Tenant LLC;

 
	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 except as specifically
 provided for in Paragraph 6(g) of this Agreement, bound by any
 obligation to make any payment to Tenant which was required to be made to any
 prior Landlord;

 
	
  

 	
  

 	
  

 
	
  

 	
 (g)

 	
 bound by any obligation to
 perform any work or to make improvements to the Premises except for (i)
 repairs, restoration and maintenance to the Premises and/or the Building
 pursuant to the provisions of Article 4, (ii) repairs to the Premises
 or any part thereof as a result of damage by fire or other casualty pursuant
 to this Lease, but only to the extent that such repairs can be reasonably
 made from the proceeds of any insurance (net of

 

3

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 collection, enforcement
 and other costs) actually made available to Lender, (iii) repairs to the
 Premises and/or the Building as a result of a partial condemnation pursuant
 to Article 11, but only to the extent that such repairs can be
 reasonably made from the proceeds of any award (net of collection,
 enforcement and other costs) actually made available to such Lender (iv)
 Landlord’s Work set forth in Schedule D of the Lease, if Lender is a
 Related Party of One Park Avenue Tenant LLC, and (v) funding Landlord’s
 Contribution pursuant to the Lease, if Lender is a Related Party of One Park
 Avenue Tenant LLC.

 

Notwithstanding the
provisions of Paragraph 6(f) and Paragraph 6(g)(v), if a Lender
that is not a Related Party of One Park Avenue Tenant LLC succeeds to the
interest of the Landlord under the Lease and has not agreed in writing to fund
all or any portion of Landlord’s Contribution pursuant to the Lease within
sixty (60) days after receipt of either (x) a notice from Tenant after such
Lender succeeds to the interest of the Landlord under the Lease of any prior failure
of Landlord to fund Landlord’s Contribution or any portion thereof under Section
41.1(B) of the Lease (together with copies of all requisitions for such
disbursement(s) required under Section 41.1(B) of the Lease which
Landlord so failed to fund) or (y) a requisition for disbursement of Landlord’s
Contribution under Section 41.1(B) of the Lease after such Lender
succeeds to the interest of Landlord under the Lease, as the case may be,
and/or thereafter does not promptly so fund, a right of offset against such
Lender shall be available with respect to Landlord’s Contribution or portion
thereof not funded, provided, that (a) with respect to Landlord’s Contribution
or portion thereof not funded due to Landlord’s failure to disburse Landlord’s
Contribution prior to such Lender’s succession to the interest of Landlord (i)
Tenant shall have sent Landlord any notice required under the Lease related
thereto, (ii) Tenant shall have notified Lender of Landlord’s failure to
disburse Landlord’s Contribution no later than five (5) days (time being of the
essence) after Landlord’s failure to fund Tenant’s requisition for disbursement
of Landlord’s Contribution as required under Section 41.1(B) of the
Lease and (iii) Tenant is entitled to reimbursement for the amounts set forth
in such requisition and is not otherwise in default under the Lease and (b)
with respect to Landlord’s Contribution or portion thereof that has not been
previously requested of any Landlord prior to such Lender and that such Lender
has not agreed to fund and/or has not funded after such Lender’s succession to
the interest of Landlord, Tenant is entitled to reimbursement for the amounts
set forth in such requisition (it being understood that Tenant shall still be
required to submit requisitions as provided under Section 41.1(B) of the
Lease) and is not otherwise in default under the Lease.

	
  

 	
  

 
	
 7.

 	
 If Lender or its designee
 acquires title to the Mortgaged Property as a result of foreclosure of the
 Mortgage, acceptance of a deed in lieu of foreclosure, or by obtaining
 control of the Premises pursuant to the remedies available to Lender at law,
 in equity, under the Mortgage, or otherwise, Tenant shall have no recourse to
 any assets of Lender or such designee for any act or omission of Lender or
 such designee in contravention of any provision of the Lease except with
 respect to the Lender’s estate in the Mortgaged Property. Lender’s
 acquisition of title to or control of the Mortgaged Property, or the
 performance by Lender of any of the obligations of Landlord under the Lease,
 shall in no event be construed as an assumption of the Lease by Lender. Upon
 Lender’s or its designee’s acquisition of title to the Mortgaged Property,
 the Lease shall be deemed automatically modified to include the provisions
 contained herein notwithstanding any other provisions of the Lease.

 

4

	
  

 	
  

 
	
 8.

 	
 Tenant shall execute such
 other documents as Lender, in its reasonable discretion, may deem necessary
 or appropriate to evidence the subordination of the Lease to the Mortgage; provided,
 however, that such documents neither conflict with the provisions of
 this Agreement nor materially adversely affect the parties’ rights or
 obligations under the Lease.

 
	
  

 	
  

 
	
 9.

 	
 Any notice, demand,
 statement, request or consent given or made hereunder shall be in writing and
 shall be deemed given on the next business day if sent by Federal Express or
 other reputable overnight courier and designated for next business day
 delivery, or on the third day following the day such notice is deposited with
 the United States postal service first class certified mail, return receipt
 requested, addressed to the addresses as set forth below, of the party to
 whom such notice is to be given, or to such other address or additional party
 as Landlord, Tenant or Lender, as the case may be, shall in like manner
 designate in writing.

 

	
  

 	
  

 
	
  

 	
 Copies of notices to
 Landlord to:

 
	
  

 	
  

 
	
  

 	
 One Park Avenue Tenant LLC

 
	
  

 	
 c/o
 Argent Ventures LLC

 
	
  

 	
 551 Fifth Avenue - 34th
 Floor

 
	
  

 	
 New York, NY 10176

 
	
  

 	
  

 
	
  

 	
 With a copy to:

 
	
  

 	
  

 
	
  

 	
 Squadron, Ellenoff, Plesent
 & Sheinfeld, LLP

 
	
  

 	
 551 Fifth Avenue

 
	
  

 	
 New York, New York 10176

 
	
  

 	
 Attention: Alan Katz, Esq.

 
	
  

 	
 Copies of notice to Tenant
 to:

 
	
  

 	
  

 
	
  

 	
 Coty Inc.

 
	
  

 	
 1325 Avenue of the
 Americas

 
	
  

 	
 34th Floor

 
	
  

 	
 New York, New York 10019

 
	
  

 	
 Attention:
           Mr. Steven Ford

 
	
  

 	
  

 
	
  

 	
 Mr. Frank Suozzi

 
	
  

 	
  

 
	
  

 	
 With a copy to:

 
	
  

 	
 Davis Polk & Wardwell

 
	
  

 	
 450 Lexington Avenue

 
	
  

 	
 New York, New York 10017

 
	
  

 	
 Attention: Thomas Patrick
 Dore, Jr., Esq.

 
	
  

 	
  

 
	
  

 	
 Copies of notice to Lender
 to:

 
	
  

 	
  

 
	
  

 	
 ARE One Park Avenue, LLC

 
	
  

 	
 c/o Property Asset
 Management Inc.

 
	
  

 	
 3 World Financial Center
 -12th Floor

 
	
  

 	
 New York, New York 10285

 
	
  

 	
 Attention: Marguerite M.
 Brogan

 

5

 

	
  

 	
  

 
	
  

 	
 With a copy to:

 
	
  

 	
  

 
	
  

 	
 Windels, Marx, Davis &
 Ives

 
	
  

 	
 156 West 56th Street

 
	
  

 	
 New York, New York 10019

 
	
  

 	
 Attention: James J.
 Thomas, Esq.

 
	
  

 	
  

 
	
  

 	
 With an Additional Copy
 to:

 
	
  

 	
  

 
	
  

 	
 Hatfield Philips Inc.

 
	
  

 	
 285 Peachtree Center
 Avenue

 
	
  

 	
 Marquis Two Tower, Suite
 2300

 
	
  

 	
 Atlanta, Georgia 30303

 
	
  

 	
 Attention: Mr. Robert Hyla

 

	
  

 	
  

 
	
 10.

 	
 This Agreement shall be
 binding upon and shall inure to the parties, their respective heirs,
 successors and assigns (including without limitation, any successor owner of
 the Landlord’s interest in the Mortgaged Property by reason of foreclosure of
 the Mortgage or any designee of Lender under any deed in lieu of
 foreclosure).

 
	
  

 	
  

 
	
 11.

 	
 This Agreement shall be
 governed by, and construed in accordance with the laws of the State in which
 the Mortgaged Property is located, without giving effect to conflict of laws,
 principles or otherwise.

 
	
  

 	
  

 
	
 12.

 	
 This Agreement may be
 executed in any number of counterparts and each such duplicate original shall
 be deemed to be an original.

 
	
  

 	
  

 
	
 13.

 	
 This Agreement may not be
 changed, amended or modified in any manner other than by an agreement in
 writing specifically referring to this Agreement and executed by the parties
 hereto.

 

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

6

          IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first above written.

	
  

 	
  

 	
  

 	
  

 
	
 LENDER:

 	
 ARE ONE PARK AVENUE LLC,

 	
  

 
	
  

 	
 a New York limited liability
 company

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ ILLEGIBLE

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: 

 	
  

 
	
  

 	
  

 	
 Title: 

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 LANDLORD:

 	
 ONE PARK AVENUE TENANT
 LLC,

 	
  

 
	
  

 	
 a New York limited
 liability company

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Andrew Penson

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Andrew Penson

 	
  

 
	
  

 	
  

 	
 Title: Authorized
 Signatory

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 TENANT:

 	
 COTY INC., a Delaware
 corporation

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Francis X. Suozzi

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Francis X. Suozzi

 	
  

 
	
  

 	
  

 	
 Title: Senior Vice
 President - Finance

 	
  

 

          IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first above written.

	
  

 	
  

 	
  

 	
  

 
	
 LENDER:

 	
 ARE ONE PARK AVENUE, LLC

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Marguerite M. Brogan

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Marguerite M. Brogan

 	
  

 
	
  

 	
  

 	
 Title: Authorized
 Signatory

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 LANDLORD:

 	
 ONE PARK AVENUE TENANT
 LLC,M

 	
  

 
	
  

 	
 a New York limited
 liability company

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: 

 	
  

 
	
  

 	
  

 	
 Title: 

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 TENANT:

 	
 COTY INC., a Delaware
 corporation

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name:

 	
  

 
	
  

 	
  

 	
 Title:

 	
  

 

	
  

 	
  

 	
  

 
	
 STATE OF NEW
 YORK

 	
 )

 	
  

 
	
  

 	
 )

 	
 SS.

 
	
 COUNTY OF
 NEW YORK

 	
 )

 	
  

 

          On
the 29th day of October in the year 1999 before me, the under signed, personally
appeared Francis X. Suozzi personally
known to me on the basis of satisfactory evidence to be the individual(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 capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the person
upon behalf of which the individual(s) acted, executed the instrument.

	
  

 	
  

 
	
  

 	
 /s/ Tanika Federico

 
	
  

 	
 TANIKA FEDERICO

 
	
  

 	
 Notary Public, State of
 New York

 
	
  

 	
 No. 41-4990703

 
	
  

 	
 Qualified in Queens County

 
	
  

 	
 Commission Expires January
 13, 2000

 

	
  

 	
  

 	
  

 
	
 STATE OF NEW
 YORK

 	
 )

 	
  

 
	
  

 	
 )

 	
 SS.

 
	
 COUNTY OF
 NEW YORK

 	
 )

 	
  

 

          On
the 29th day of October in the year 1999 before me, the under signed, personally
appeared Andrew Penson personally
known to me on the basis of satisfactory evidence to be the individual(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 capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the person
upon behalf of which the individual(s) acted, executed the instrument. 

	
  

 	
  

 
	
  

 	
 /s/ Dianna L. Oppegard

 
	
  

 	
 DIANNA L. OPPEGARD

 
	
  

 	
 Notary Public, State of
 New York

 
	
  

 	
 No. 24-4748622

 
	
  

 	
 Qualified in Kings County

 
	
  

 	
 Commission Expires August
 31, 2001

 

	
  

 	
  

 	
  

 
	
 STATE OF NEW
 YORK

 	
 )

 	
  

 
	
  

 	
 )

 	
 SS.

 
	
 COUNTY OF
 NEW YORK

 	
 )

 	
  

 

          On
the 29th day of October in the year 1999 before me, the
under signed, personally appeared ____________ personally known to me on the basis of
satisfactory evidence to be the individual(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 capacity(ies), and that by his/her/their signature(s) on
the instrument, the individual(s), or the
person upon behalf of which the individual(s) acted, executed the instrument.

	
  

 	
  

 	
  

 
	
 STATE OF NEW
 YORK

 	
 )

 	
  

 
	
  

 	
 )

 	
 SS.

 
	
 COUNTY OF
 NEW YORK

 	
 )

 	
  

 

          On
the 29th day of October in the year 1999 before me, the under signed, personally
appeared Marguerite M. Brogan; personally
known to me on the basis of satisfactory evidence to be the individual(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 capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the person
upon behalf of which the individual(s) acted, executed the instrument.

	
  

 	
  

 
	
  

 	
 /s/ ILLEGIBLE

 

	
  

 	
  

 	
  

 
	
 STATE OF NEW
 YORK

 	
 )

 	
  

 
	
  

 	
 )

 	
 SS.

 
	
 COUNTY OF
 NEW YORK

 	
 )

 	
  

 

          On
the ________ day of ________ in the year __________________ before me, the
under signed, personally appeared ____________; personally known to me on the basis of
satisfactory evidence to be the individual(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 capacity(ies), and that by his/her/their signature(s) on
the instrument, the individual(s), or the person upon behalf of which the
individual(s) acted, executed the instrument.

	
  

 	
  

 	
  

 
	
 STATE OF NEW
 YORK

 	
 )

 	
  

 
	
  

 	
 )

 	
 SS.

 
	
 COUNTY OF
 NEW YORK

 	
 )

 	
  

 

          On
the ________ day of ________ in the year __________________ before me, the
under signed, personally appeared ____________; personally known to me on the
basis of satisfactory evidence to be the individual(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 capacity(ies), and that by his/her/their
signature(s) on the instrument, the individual(s), or the person upon behalf of
which the individual(s) acted, executed the instrument.

EXHIBIT A

Legal Description

Exhibit
A

Premises

ALL that
certain plot, 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
the corner formed by the intersection of the northerly side of 32nd Street and
the easterly side of Park Avenue;

THENCE
easterly along the northerly side of 32nd Street, 230 feet;

THENCE
northerly parallel with Lexington Avenue, 197 feet 6 inches to the southerly
side of 33rd Street;

THENCE
westerly along the southerly side of 33rd Street 230 feet to its intersection
with the easterly side of Park Avenue; and

THENCE southerly along the
easterly side of Park Avenue, 197 feet 6 inches to the point or place of
BEGINNING.

Ground Lease

SUBORDINATION,

NON-DISTURBANCE AND ADORNMENT AGREEMENT 

ONE PARK AVENUE TENANT LLC 

Landlord

COTY INC. 

Tenant

ONE PARK AVENUE FEE LLC 

Superior Lessor

Premises:

Fourth and Fifth Floors 

One Park Avenue 

New York, New York

Record and Return to:

James J. Thomas, Esq. 

Windels, Marx, Davis & Ives 

156 West 56th Street 

New York, New York 10019

SUBORDINATION,

NON-DISTURBANCE AND ATTORNMENT AGREEMENT

          This
SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT dated this 29th
day of October, 1999 among ONE PARK AVENUE TENANT LLC, a New York limited
liability company having an office c/o Argent Ventures LLC, 551 Fifth Avenue,
34th Floor, New York, New York 10176 (“Landlord”), COTY INC. a Delaware corporation with an
address at 1325 Avenue of the Americas, 34th Floor, New York, New York 10019,
(“Tenant”) and ONE PARK
AVENUE FEE LLC (“Superior Lessor”).

WITNESSETH:

          WHEREAS,
as of February 1, 1949, Metropolitan Life Insurance Company, as landlord, and
7878 Corporation, as tenant, entered into a lease as heretofore amended from
time to time, including, without limitation, that certain Amendment of Lease
dated November 10, 1998 between Superior Lessor and Landlord (the “Superior
Lease”)for the real property and improvements known as and located at One Park
Avenue, New York, New York as more particularly described on Exhibit A hereto
(the “Leased Property”);  

          WHEREAS,
Landlord and Tenant are parties to that certain Lease Agreement affecting a
portion of the Leased Property (such portion, the “Premises”) dated October 29,
1999 (the “Lease”);  

          WHEREAS,
as security for its obligations in respect of the Loan Landlord has assigned to
Lender all of Landlord’s right, title and interest in an to all existing and
future leases affecting the Mortgaged Property, including the Lease, and the
rents payable thereunder; 

          WHEREAS,
the Lease is subject and subordinate to the Superior Lease, and Tenant’s right,
title and interest in, to and under the Lease are subject and subordinate to
Superior Lessor’s right, title and interest in, to and under the Superior
Lease; 

          WHEREAS,
Tenant has requested that Superior Lessor give certain assurances that, subject
to the terms and conditions of this Agreement, Tenant’s possession of the
Premises will not be disturbed by reason of default under the Superior Lease; 

          WHEREAS,
Superior Lessor is only willing to provide such assurances to Tenant upon and
subject to the express terms and conditions of this Agreement; and 

          WHEREAS,
Superior Lessor and Landlord have agreed to execute and deliver this Agreement
to Tenant. 

          NOW,
THEREFORE, in consideration of the mutual premises herein contained, and for
other good and valuable consideration, the receipt and legal sufficiency of
which are hereby acknowledged, the parties hereto do mutually covenant and
agree as follows: 

	
  

 	
  

 
	
 1.

 	
 The Lease is and at all
 times hereafter shall be subject and subordinate in all respects to the
 Superior Lease and to all renewals, modifications, substitutions,
 consolidations and extensions thereof, and to all other future leases
 affecting the Leased Property held by Superior Lessor. The Superior Lessor
 hereby consents to the Lease.

 

	
  

 	
  

 
	
 2.

 	
 Any provision in the Lease
to the contrary notwithstanding, a notice by Tenant to Landlord of a default
under the Lease by Landlord, which default is of such a nature as to give
Tenant a right to terminate the Lease, to reduce the rent payable under the
Lease or to credit or offset against future rents, shall be effective only
if: (a) such notice is also given to Superior Lessor; and (b) Superior Lessor
shall not have cured or remedied such default by the later to occur of: (i)
30 days after Superior Lessor’s receipt of such notice; or (ii) 30 days after
the expiration of any applicable notice or grace period under the Lease;
provided, however, that if: (A) such default is not reasonably capable of
being cured within the applicable period; and (B) Superior Lessor shall
diligently proceed with its efforts to cure, Superior Lessor shall have a
reasonable additional period to cure such default. Superior Lessor shall have
the right, but not the obligation, to remedy or cure any such default.  

 
	
  

 	
  

 
	
 3.

 	
 So long as Tenant is not
 in default in the payment of rent, additional rent or other charges, or in
 the performance of any of the terms, covenants or conditions of the Lease,
 such default continuing beyond any applicable notice or grace period,
 Tenant’s occupancy of the Premises during the original or any renewal term of
 the Lease or any extension thereof shall not be disturbed by Superior Lessor
 by reason of default of the Superior Lease, or the exercise of any remedy
 available at law, in equity or under the Superior Lease. Superior Lessor will
 not join Tenant as a party defendant in any action or proceeding exercising
 Superior Lessor’s rights and remedies arising upon any default under the
 Mortgage unless applicable law requires Tenant to be made a party thereto as
 a condition to proceeding against Landlord or exercising such rights and
 remedies. In the latter case, Superior Lessor may join Tenant as a defendant
 in such action only for such purpose and not to terminate the Lease or
 otherwise adversely affect Tenant’s rights under the Lease or this Agreement
 in such action, and Tenant shall be entitled to occupy the Premises
 (including, to the extent Tenant has properly exercised its options under the
 Lease, the Extension Space, Option Space and Offering Space, as such terms
 are defined under the Lease), and enjoy all of its right and interest under
 the Lease for the full term thereof, including any extended or renewal term
 provided therein and properly exercised. 

 
	
  

 	
  

 
	
 4.

 	
 Superior Lessor’s receipt
 of the rents payable by Tenant under the Lease, pursuant to the Superior
 Lease or any assignment of the Lease, shall not obligate Superior Lessor to
 perform Landlord’s obligations under the Lease. Tenant shall make all
 payments under the Lease to Superior Lessor or its designee upon receipt of
 written notice that such right has accrued, and Tenant agrees not to prepay
 any sums payable by Tenant under the Lease. Superior Lessor’s receipt of such
 rent shall not relieve Landlord of its obligations under the Lease, and
 Tenant shall continue to look solely to Landlord for performance of such
 obligations. 

 
	
  

 	
  

 
	
 5.

 	
 Upon Superior Lessor’s
 succession to the rights of Landlord under the Lease, whether through
 possession, termination or cancellation of the Lease, surrender, assignment,
 judicial action, subletting, foreclosure, delivery of a deed in lieu of
 foreclosure or otherwise, Tenant will attorn to and recognize Superior Lessor
 as the landlord under the Lease, and Superior Lessor will accept such
 attornment and recognize Tenant’s rights of possession and use of the
 Premises in accordance with the terms of the Lease with the same force and
 effect as if the Lease was originally between Superior Lessor, as

 

2

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 landlord, and Tenant, as
 tenant, subject to Paragraph 6 of this Agreement, upon the then
 executory provisions of the Lease as it now exists or may hereafter be
 amended by an amendment thereof consented to in writing by the Landlord,
 Superior Lessor and Tenant, as the case may be. Without further evidence of
 such attornment and acceptance, Tenant shall be bound by, and shall comply
 with, each and every term, provision, covenant and obligation contained in
 the Lease on Tenant’s part to be performed. Except as specifically provided
 for in Paragraph 6(g) of this Agreement, nothing contained in this Agreement,
 or in any other instrument including, without limitation, the Lease, shall
 impose upon Superior Lessor an obligation to complete or renovate the
 Premises for the benefit of Tenant. Tenant’s agreement to attorn shall not be
 construed as amending Landlord’s obligations under the Lease. 

 
	
  

 	
  

 	
  

 	
  

 
	
 6.

 	
 Superior Lessor shall not
 in any way or to any extent be: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 liable for any act or
 omission of any prior landlord (including Landlord) in contravention of any
 provision of the Lease so long as Superior Lessor is not a Related Party of
 One Park Avenue Tenant LLC. For the purposes of this Agreement, “Related Party” shall mean with
 respect to any Person (as such term is defined in the Lease) any corporation,
 partnership, limited liability company or other entity which shall, and only for
 so long as such entity continues to, control, be under the control of or be
 under common control with such Person (the terms “control” and “controlling”
 as used with respect to a Related Party shall mean the power to direct or
 cause the direction of management and policy in an entity, whether through
 ownership of a majority interest in such entity, voting rights or otherwise; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 subject to any offset,
 claim or defense which Tenant might have against any prior landlord
 (including Landlord); 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 bound by any rent or
 additional rent which Tenant might have paid more than 30 days in advance to
 any prior landlord (including Landlord); 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 bound by any agreement,
 surrender or modification of the Lease or of any Lease guaranty made without
 Superior Lessor’s prior written consent or any termination thereof which is
 not in accordance with the terms of the Lease; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 in any way responsible for
 any security or other deposit which was delivered to Landlord, and not
 forfeited by Tenant, but which was not subsequently delivered to Superior
 Lessor so long as Superior Lessor is not a Related Party of One Park
 AvenueTenant LLC; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (f)

 	
 except as specifically
 provided for in Paragraph 6(g) of this Agreement, bound by any obligation to
 make any payment to Tenant which was required to be made to any prior
 Landlord; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (g)

 	
 bound by any obligation to
 perform any work or to make

 

3

	
  

 	
  

 
	
  

 	
 improvements to the
 Premises except for (i) repairs, restoration and maintenance to the Premises
 and/or the Building pursuant to the provisions of Article 4, (ii)
 repairs to the Premises or any part thereof as a result of damage by fire or
 other casualty pursuant to this Lease, but only to the extent that such
 repairs can be reasonably made from the proceeds of any insurance (net of
 collection, enforcement and other costs) actually made available to Superior
 Lessor and (iii) repairs to the Premises and/or the Building as a result of a
 partial condemnation pursuant to Article 11, but only to the extent
 that such repairs can be reasonably made from the proceeds of any award (net
 of collection, enforcement and other costs) actually made available to such
 Superior Lessor; (iv) Landlord’s Work set forth in Schedule D of the
 Lease, if Superior Lessor is a Related Party of One Park Avenue Tenant LLC,
 and (v) funding Landlord’s Contribution pursuant to the Lease, if Lender is a
 Related Party of One Park Avenue Tenant LLC. 

 

Notwithstanding the
provisions of Paragraph 6(f) and Paragraph 6(g)(v), if a Lender
that is not a Related Party of One Park Avenue Tenant LLC succeeds to the
interest of the Landlord under the Lease and has not agreed in writing to fund
all or any portion of Landlord’s Contribution pursuant to the Lease within
sixty (60) days after receipt of either (x) a notice from Tenant after such
Lender succeeds to the interest of the Landlord under the Lease of any prior
failure of Landlord to fund Landlord’s Contribution or any portion thereof
under Section 41.1(B) of the Lease (together with copies of all
requisitions for such disbursement(s) required under Section 41.1(B) of
the Lease which Landlord so failed to fund) or (y) a requisition for disbursement of Landlord’s Contribution
under Section 41.1(B) of the Lease after such Lender succeeds to the interest
of Landlord under the Lease, as the case may be, and/or thereafter does not
promptly so fund, a right of offset against such Lender shall be available with
respect to Landlord’s Contribution or portion thereof not funded, provided,
that (a) with respect to Landlord’s Contribution or portion thereof not funded
due to Landlord’s failure to disburse Landlord’s Contribution prior to such
Lender’s succession to the interest of Landlord (i) Tenant shall have sent
Landlord any notice required under the Lease related thereto, (ii) Tenant shall
have notified Lender of Landlord’s failure to disburse Landlord’s Contribution
no later than five (5) days (time being of the essence) after Landlord’s
failure to fund Tenant’s requisition for disbursement of Landlord’s
Contribution as required under Section 41.1(B) of the Lease and (iii)
Tenant is entitled to reimbursement for the amounts set forth in such
requisition and is not otherwise in default under the Lease and (b) with
respect to Landlord’s Contribution or portion thereof that has not been
previously requested of any Landlord prior to such Lender and that such Lender
has not agreed to fund and/or has not funded after such Lender’s succession to
the interest of Landlord, Tenant is entitled to reimbursement for the amounts
set forth in such requisition (it being understood that Tenant shall still be
required to submit requisitions as provided under Section 41.1(B) of the
Lease) and is not otherwise in default under the Lease. 

	
  

 	
  

 
	
 7.

 	
 If Superior Lessor or its
 designee acquires title to the Leased Property as a result of default of the
 Superior Lease, or by obtaining control of the Premises pursuant to the
 remedies available to Superior Lessor at law, in equity, under the Superior
 Lease, or otherwise, Tenant shall have no recourse to any assets of Superior
 Lessor or such designee for any act or omission of Superior Lessor or such
 designee in contravention of any provision of the Lease except with respect
 to the Superior Lessor’s interest in the 

 

4

	
  

 	
  

 
	
  

 	
 Leased Property. Superior
 Lessor’s acquisition of title to or control of the Leased Property, or the
 performance by Superior Lessor of any of the obligations of Landlord under
 the Lease, shall in no event be construed as an assumption of the Lease by
 Superior Lessor. Upon Superior Lessor’s or its designee’s acquisition of
 title to the Leased Property, the Lease shall be deemed automatically
 modified to include the provisions contained herein notwithstanding any other
 provisions of the Lease. 

 
	
  

 	
  

 
	
 8.

 	
 Tenant shall execute such
 other documents as Superior Lessor, in its reasonable discretion, may deem
 necessary or appropriate to evidence the subordination of the Lease to the
 Superior Lease; provided, however, that such documents neither
 conflict with the provisions of this Agreement nor materially adversely
 affect the parties’ rights or obligations under the Lease. 

 
	
  

 	
  

 
	
 9.

 	
 Any notice, demand,
 statement, request or consent given or made hereunder shall be in writing and
 shall be deemed given on the next business day if sent by Federal Express or
 other reputable overnight courier and designated for next business day
 delivery, or on the third day following the day such notice is deposited with
 the United States postal service first class certified mail, return receipt
 requested, addressed to the addresses as set forth below, of the party to
 whom such notice is to be given, or to such other address or additional party
 as Landlord, Tenant or Superior Lessor, as the case may be, shall in like
 manner designate in writing. 

 

	
  

 	
  

 	
  

 
	
  

 	
 Copies of notices to
 Landlord to: 

 
	
  

 	
 One Park Avenue Tenant LLC
 

 
	
  

 	
 c/o Argent Ventures LLC 

 
	
  

 	
 551 Fifth Avenue - 34th
 Floor 

 
	
  

 	
 New York, NY 10176 

 
	
  

 	
  

 	
  

 
	
  

 	
 With a copy to: 

 
	
  

 	
 Squadron, Ellenoff,
 Plesent & Sheinfeld, LLP 

 
	
  

 	
 551 Fifth Avenue 

 
	
  

 	
 New York, New York 10176 

 
	
  

 	
 Attention: Alan Katz, Esq.
 

 
	
  

 	
  

 	
  

 
	
  

 	
 Copies of notice to Tenant
 to: 

 
	
  

 	
 Coty Inc. 

 
	
  

 	
 1325 Avenue of the
 Americas 

 
	
  

 	
 34th Floor 

 
	
  

 	
 New York, New York 10019 

 
	
  

 	
 Attention:

 	
 Mr. Steven Ford 

 
	
  

 	
  

 	
 Mr. Frank Suozzi 

 
	
  

 	
  

 	
  

 
	
  

 	
 With a copy to: 

 
	
  

 	
 Davis Polk & Wardwell 

 
	
  

 	
 450 Lexington Avenue 

 
	
  

 	
 New York, New York 10017 

 
	
  

 	
 Attention: Thomas Patrick
 Dore, Jr., Esq.

 

5

	
  

 	
  

 
	
  

 	
 Copies of notice to
 Superior Lessor to: 

 
	
  

 	
 One Park Avenue Fee LLC 

 
	
  

 	
 c/o Property Asset
 Management Inc. 

 
	
  

 	
 3 World Financial Center -
 12th Floor 

 
	
  

 	
 New York, New York 10285 

 
	
  

 	
 Attention: Marguerite M.
 Brogan 

 
	
  

 	
  

 
	
  

 	
 With a copy to: 

 
	
  

 	
 Windels, Marx, Davis &
 Ives 

 
	
  

 	
 156 West 56th Street 

 
	
  

 	
 New York, New York 

 
	
  

 	
 10019 Attention: James J.
 Thomas, Esq. 

 
	
  

 	
  

 
	
  

 	
 With an Additional Copy
 to: 

 
	
  

 	
 Hatfield Philips Inc. 

 
	
  

 	
 285 Peachtree Center
 Avenue 

 
	
  

 	
 Marquis Two Tower, Suite
 2300 

 
	
  

 	
 Atlanta, Georgia 30303 

 
	
  

 	
 Attention: Mr. Robert Hyla
 

 

	
  

 	
  

 
	
 10.

 	
 This Agreement shall be
 binding upon and shall inure to the parties, their respective heirs,
 successors and assigns (including without limitation, any successor owner of
 the Superior Lessor’s interest in the Superior Lease). 

 
	
  

 	
  

 
	
 11.

 	
 This Agreement shall be
 governed by, and construed in accordance with the laws of the State in which
 the Leased Property is located, without giving effect to conflict of laws,
 principles or otherwise. 

 
	
  

 	
  

 
	
 12.

 	
 This Agreement may be
 executed in any number of counterparts and each such duplicate original shall
 be deemed to be an original. 

 
	
  

 	
  

 
	
 13.

 	
 This Agreement may not be
 changed, amended or modified in any manner other than by an agreement in
 writing specifically referring to this Agreement and executed by the parties
 hereto. 

 

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

6

          IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first above written. 

	
  

 	
  

 	
  

 
	
 LANDLORD:

 	
 ONE PARK AVENUE TENANT
 LLC,

 
	
  

 	
 a New York limited
 liability company

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/Andrew Penson

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name: Andrew Penson

 
	
  

 	
  

 	
 Title: Authorized
 Signatory

 
	
  

 	
  

 	
  

 
	
 SUPERIOR

 	
 ONE PARK AVENUE FEE LLC

 
	
 LESSOR:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 
	
  

 	
  

 	
  

 
	
 TENANT:

 	
 COTY INC., a Delaware
 corporation

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Francis X. Suozzi

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:Francis X Suozzi

 
	
  

 	
  

 	
 Title: Senior Vice
 President: Finance

 

          IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first above written. 

	
  

 	
  

 	
  

 
	
 LANDLORD:

 	
 ONE PARK AVENUE TENANT
 LLC,

 
	
  

 	
 a New York limited
 liability company

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 
	
  

 	
  

 	
  

 
	
 SUPERIOR

 	
 ONE PARK AVENUE FEE LLC

 
	
 LESSOR:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Marguerite M. Brogan

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name: Marguerite M Brogan

 
	
  

 	
  

 	
 Title: Authorized
 Signatory

 
	
  

 	
  

 	
  

 
	
 TENANT:

 	
 COTY INC., a Delaware
 corporation

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 

	
  

 	
  

 	
  

 
	
 STATE OF NEW
 YORK

 	
 )

 	
  

 
	
  

 	
 )

 	
 SS.

 
	
 COUNTY OF
 NEW YORK

 	
 )

 	
  

 

          On
the 29th day of October in the year 1999 before me, the under signed, personally
appeared Andrew Penson personally known to me on the basis of
satisfactory evidence to be the individual whose name is subscribed to the
within instrument and acknowledged to me that he executed the same in his
capacity, and that by his signature on the instrument, the individual, or the
person upon behalf of which the individual acted, executed the instrument.

	
  

 	
  

 
	
  

 	
 /s/ Dianna L. Oppegard

 
	
  

 	
 DIANNA L. OPPEGARD

 
	
  

 	
 Notary Public, State of
 New York

 
	
  

 	
 No. 24-4748622

 
	
  

 	
 Qualified in Kings County

 
	
  

 	
 Commission Expires August
 31, 2001

 

	
  

 	
  

 	
  

 
	
 STATE OF NEW
 YORK

 	
 )

 	
  

 
	
  

 	
 )

 	
 SS.

 
	
 COUNTY OF
 NEW YORK)

 	
  

 	
  

 

          On
the 29th day of October in the year 1999 before me, the under signed, personally
appeared Francis X. Suozzi personally
known to me on the basis of satisfactory evidence to be the individual(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 capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s) acted, executed the
instrument.

	
  

 	
  

 	
  

 
	
 STATE OF NEW
 YORK

 	
 )

 	
  

 
	
  

 	
 )

 	
 SS.

 
	
 COUNTY OF
 NEW YORK)

 	
  

 	
  

 

On the _______
day of __________ in the year _____________ before me, the
under signed, personally appeared ____________ personally known to me on the basis of
satisfactory evidence to be the individual(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 capacity(ies), and that by his/her/their signature(s) on
the instrument, the individual(s), or the
person upon behalf of which the individual(s) acted, executed the instrument.

	
  

 	
  

 
	
  

 	
 /s/ Tanika Federico

 
	
  

 	
 TANIKA FEDERICO

 
	
  

 	
 Notary Public, State of
 New York

 
	
  

 	
 No. 41-4990703

 
	
  

 	
 Qualified in Queens County

 
	
  

 	
 Commission
 Expires January 13, 2000

 

	
  

 	
  

 	
  

 
	
 STATE OF NEW
 YORK

 	
 )

 	
  

 
	
  

 	
 )

 	
 SS.

 
	
 COUNTY OF
 NEW YORK

 	
 )

 	
  

 

          On
the _______ day of __________ in the year _____________ before me, the under signed, personally
appeared ____________ personally
known to me on the basis of satisfactory evidence to be the individual(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 capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s) acted, executed the
instrument.

	
  

 	
  

 	
  

 
	
 STATE OF NEW
 YORK

 	
 )

 	
  

 
	
  

 	
 )

 	
 SS.

 
	
 COUNTY OF
 NEW YORK)

 	
  

 	
  

 

          On
the _29th day of October in the year 1999 before me,
the under signed, personally appeared Marguerite M. Brogan personally
known to me on the basis of satisfactory evidence to be the individual(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 capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s) acted, executed the
instrument.

	
  

 	
  

 
	
  

 	
 /s/ ILLEGIBLE

 

	
  

 	
  

 	
  

 
	
 STATE OF NEW
 YORK

 	
 )

 	
  

 
	
  

 	
 )

 	
 SS.

 
	
 COUNTY OF
 NEW YORK)

 	
  

 	
  

 

On the _______
day of __________ in the year _____________ before me, the
under signed, personally appeared ____________ personally known to me on the basis of
satisfactory evidence to be the individual(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 capacity(ies), and that by his/her/their signature(s) on
the instrument, the individual(s), or the
person upon behalf of which the individual(s) acted, executed the instrument..

EXHIBIT A

Legal Description

Exhibit
A

Premises

ALL that
certain plot, 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
the corner formed by the intersection of the northerly side of 32nd Street and
the easterly side of Park Avenue;

THENCE
easterly along the northerly side of 32nd Street, 230 feet;

THENCE
northerly parallel with Lexington Avenue, 197 feet 6 inches to the southerly
side of 33rd Street;

THENCE
westerly along the southerly side of 33rd Street 230 feet to its intersection
with the easterly side of Park Avenue; and

THENCE
southerly along the easterly side of Park Avenue, 197 feet 6 inches to the
point or place of BEGINNING.

SCHEDULE G-2

SUBORDINATION. NON-DISTURBANCE AND ATTORNMENT
AGREEMENT

(CDC MORTGAGE CAPITAL INC.)

G-2

SCHEDULE G-2

SUBORDINATION,
ATTORNMENT AND NON-DISTURBANCE AGREEMENT

          THIS
SUBORDINATION, ATTORNMENT AND NON-DISTURBANCE AGREEMENT (“Agreement”) is entered into as of
October __, 1999 the (“Effective Date”) by and between CDC MORTGAGE CAPITAL INC., a New York corporation
(the ‘‘Mortgagee”) and COTY INC., a Delaware corporation (hereinafter,
the “Tenant”), with reference to the following facts:

          A.
ONE PARK AVENUE TENANT LLC, a New York limited liability company, whose address
is c/o Argent Ventures LLC, 551 Fifth Avenue, 34th Floor, New York, New York
10176 (the “Landlord”) owns fee simple title or a leasehold interest in
the real property described in Exhibit “A” attached hereto (the “Property”).

          B.
Mortgagee intends to make a loan to Landlord in the original principal amount
of ONE HUNDRED AND TWENTY FIVE MILLION DOLLARS ($125,000,000) (the “Loan”).

          C.
To secure the Loan, Landlord intends to encumber the Property by entering into
that certain Amended and Restated Mortgage, Assignment of Leases and Rents, and
Security Agreement to be dated _____________, 1999 in favor of Mortgagee (as
amended, increased, renewed, extended, spread, consolidated, severed, restated,
or otherwise changed from time to time, the “Mortgage”) to be recorded
in the Recorder’s Office in and for the County of New York, State of New York.

          D.
Pursuant to the Lease effective ____________________, 1999 (the “Lease”),
Landlord demised to Tenant a portion of the Property consisting of the
following (the “Leased Premises”): The entire Fourth and Fifth Floors.

          E.
Tenant and Mortgagee desire to agree upon the relative priorities of their
interests in the Property and their rights and obligations if certain events
occur.

          NOW,
THEREFORE, for good and sufficient consideration, Tenant and Mortgagee agree:

1. Definitions. The
following terms shall have the following meanings for purposes of this
Agreement.

          a.
Foreclosure Event. A “Foreclosure
Event” means: (i) foreclosure under the Mortgage; (ii) any other exercise
by Mortgagee or its successor, designee or nominee of rights and remedies
(whether under the Mortgage or under applicable law, including bankruptcy law)
as holder of the Loan and/or the Mortgage, as a result of which a Successor
Landlord becomes owner of the Property; or (iii) delivery by Landlord to
Mortgagee (or its designee or nominee) of a deed or other conveyance of
Landlord’s interest in the Property in lieu of any of the foregoing.

          b.
Former Landlord. A “Former
Landlord” means Landlord and any other party that was landlord under the
Lease at any time before the occurrence of any attornment under this Agreement.

          c.
Offset Right. An “Offset
Right” means any right or alleged right of Tenant to any offset, defense
(other than one arising from actual payment and performance, which payment and
performance would bind a Successor Landlord pursuant to this Agreement), claim,
counterclaim, reduction, deduction, or abatement against Tenant’s payment of
Rent or performance of Tenant’s other obligations under the Lease, arising
(whether under the Lease or under applicable law) from Landlord’s breach or
default under the Lease.

          d.
Rent. The “Rent” means any fixed rent, base
rent or additional rent under the Lease.

          e.
Successor
Landlord. A “Successor
Landlord” means any party that becomes owner of the Property as the result
of a Foreclosure Event.

          f.
Termination
Right.
A “Termination Right”
means any right of Tenant to cancel or terminate the Lease or to claim a
partial or total eviction arising (whether under the Lease or under applicable
law) from Landlord’s breach or default under the Lease.

          g.
Other
Capitalized Terms. If the
initial letter of any other term used in this Agreement is capitalized and no
separate definition is contained in this Agreement, then such term shall have
the same respective definition as set forth in the Lease.

2. Subordination. The Lease shall
be, and shall at all times remain, subject and subordinate to the terms of the
Mortgage, the lien imposed by the Mortgage, and all advances made under the
Mortgage. Mortgagee hereby consents to the Lease.

3. Nondisturbance,
Recognition and Attornment.

          a.
No
Exercise of Mortgage Remedies Against Tenant. So long as the Tenant is not in default under
the Lease beyond any applicable grace or cure periods (an “Event of Default”),
Mortgagee shall not name or join Tenant as a defendant in any exercise of
Mortgagee’s rights and remedies arising upon a default under the Mortgage
unless applicable law requires Tenant to be made a party thereto as a condition
to proceeding against Landlord or prosecuting such rights and remedies. In the
latter case, Mortgagee may join Tenant as a defendant in such action only for
such purpose and not to terminate the Lease or otherwise adversely affect
Tenant’s rights under the Lease or this Agreement in such action.

          b.
Nondisturbance
and Attornment. If an
Event of Default by Tenant is not then continuing, then, when Successor
Landlord takes title to the Property: (i) Successor Landlord shall not
terminate or disturb Tenant’s possession of the Leased Premises under the
Lease, except in accordance with the terms of the Lease and this Agreement;
(ii) Successor Landlord shall be bound to Tenant under all the terms and
conditions of the Lease with the same force and effect as if the

2

          Lease was
originally between Successor Landlord, as landlord, and Tenant, as tenant, upon
the then-executory provisions of the Lease as it now exists or may hereafter be
amended by an amendment consented to by Successor Landlord (except as provided
in this Agreement, including, subject to Paragraph 4 hereinbelow); (iii) Tenant
shall recognize and attorn to Successor Landlord as Tenant’s direct landlord
under the Lease as affected by this Agreement; (iv) Successor Landlord shall
recognize and accept the Tenant as its direct tenant and shall recognize and
accept the rights of the Tenant under the Lease; (v) the Lease shall continue
in full force and effect as a direct lease, in accordance with its terms
(except as provided in this Agreement), between Successor Landlord and Tenant;
and (vi) subject to the provisions hereof, Tenant shall be entitled to occupy
the Leased Premises, including any Extension Space, Option Space or Offering
Space (as such terms are defined in the Lease) as provided in the Lease. Tenant
acknowledges notice of the Mortgage and assignment of rents, leases and profits
from the Landlord to the Mortgagee. Tenant agrees to continue making payments
of rents and other amounts owed by Tenant under the Lease to the Landlord and
to otherwise recognize the rights of Landlord under the Lease until notified
otherwise in writing by the Mortgagee (as provided in the Mortgage), and after
receipt of such notice the Tenant agrees thereafter to make all such payments
to the Mortgagee, without any further inquiry on the part of the Tenant, and
Landlord consents to the foregoing.

          c.
Further
Documentation. The
provisions of this Article 3 shall be effective and self-operative without any
need for Successor Landlord or Tenant to execute any further documents. Tenant
and Successor Landlord shall, however, confirm the provisions of this Article
3 in writing upon request by either of them within ten (10) days of such
request.

4. Protection
of Successor Landlord. Notwithstanding anything to the contrary
in the Lease or the Mortgage, Successor Landlord shall not be liable for or
bound by any of the following matters:

          a.
Claims
Against Former Landlord. Any Offset Right that Tenant may have
against any Former Landlord relating to any event or occurrence before the date
of attornment, including any claim for damages of any kind whatsoever as the
result of any breach by Former Landlord that occurred before the date of
attornment, except with respect to any amounts due Tenant pursuant to Article
41 of the Lease.

          b.
Prepayments. Any payment of Rent that Tenant may have made
to Former Landlord more than thirty (30) days before the date such Rent was
first due and payable under the Lease with respect to any period after the date
of attornment other than, and only to the extent that, the Lease expressly
required such a prepayment.

          c.
Payment;
Security Deposit. Any
obligation: (i) to pay Tenant any sum(s) that any Former Landlord owed to
Tenant unless such sums, if any, shall have been delivered to Mortgagee by way
of an assumption of escrow accounts or otherwise excepting any obligation to
fund any remaining portion of Landlord’s Contribution pursuant to Article 41 of
the Lease; (ii) with respect to any security deposited with Former
Landlord, unless such security was actually delivered to Mortgagee; or (iii) to
reconstruct or repair improvements following a fire, casualty or condemnation.

3

          d.
Modification,
Amendment or Waiver. Any
modification or amendment of the Lease, or any waiver of the terms of the
Lease, made without Mortgagee’s written consent.

          e.
Surrender,
Etc. Any consensual or negotiated surrender, cancellation, or
termination of the Lease, in whole or in part, agreed upon between Landlord and
Tenant, unless effected unilaterally by Tenant pursuant to the express terms of
the Lease.

5. Exculpation of Successor Landlord. Notwithstanding
anything to the contrary in this Agreement or the Lease, upon any attornment
pursuant to this Agreement, the Lease shall be deemed to have been
automatically amended to provide that Successor Landlord’s obligations and
liability under the Lease shall never extend beyond Successor Landlord’s (or
its successors’ or assigns’) interest, if any, in the Leased Premises from time
to time, including insurance and condemnation proceeds, security deposits,
escrows, Successor Landlord’s interest in the Lease, and the proceeds from any
sale, lease or other disposition of the Property (or any portion thereof) by
Successor Landlord (collectively, the “Successor Landlord’s Interest”).
Tenant shall look exclusively to Successor Landlord’s Interest (or that of its
successors and assigns) for payment or discharge of any obligations of
Successor Landlord under the Lease as affected by this Agreement. If Tenant obtains any money judgment against Successor Landlord with
respect to the Lease or the relationship between Successor Landlord and Tenant,
then Tenant shall look solely to Successor Landlord’s Interest (or that of its
successors and assigns) to collect such judgment. Tenant shall not collect or
attempt to collect any such judgment out of any other assets of Successor
Landlord.

6. Mortgagee’s Right to Cure. Notwithstanding anything to the contrary in
the Lease or this Agreement, before exercising any Termination Right:

          a.
Notice
to Mortgagee. Tenant shall provide Mortgagee with notice of the
breach or default by Landlord giving rise to same (the “Default Notice”)
and, thereafter, the opportunity to cure such breach or default as provided for
below.

          b.
Mortgagee’s
Cure Period. After Mortgagee
receives a Default Notice, Mortgagee shall have a period of thirty (30) days in which to cure the breach or default by Landlord. Mortgagee
shall have no obligation to cure (and shall have no liability or obligation for
not curing) any breach or default by Landlord, except to the extent that
Mortgagee agrees or undertakes otherwise in writing. In addition, as to any
breach or default by Landlord the cure of which requires possession and control
of the Property, provided only that Mortgagee undertakes to Tenant by written
notice to Tenant within fifteen (15) days after receipt of the Default Notice
to exercise reasonable efforts to cure or cause to be cured by a receiver such
breach or default within the period permitted by this paragraph, Mortgagee’s
cure period shall continue for such additional time (the “Extended Cure
Period”) as Mortgagee may reasonably require to either: (i) obtain
possession and control of the Property with due diligence and thereafter cure
the breach or default with reasonable diligence and continuity; or (ii) obtain
the appointment of a receiver and give such receiver a reasonable period of
time in which to cure the default.

4

7. Miscellaneous.

          a.
Notices. Any notice or request given or demand made
under this Agreement by one party to the other shall be in writing, and may be
given or be served by hand delivered personal service, or by depositing the
same with a reliable overnight courier service or by deposit in the United
States mail. postpaid, registered or certified mail. and addressed to the party
to be notified, with return receipt requested or by telefax transmission. with
the original machine-generated transmit confirmation report as evidence of
transmission. Notice deposited in the mail in the manner hereinabove described
shall be effective from and after the expiration of three (3) days after it is
so deposited; however, delivery by overnight courier service shall be deemed effective on the next succeeding
business day after it is so deposited and notice by personal service or telefax
transmission shall be deemed effective when delivered to its addressee or within two (2) hours after its transmission unless given
after 3:00 p.m. on a business day. in which case it shall be deemed effective
at 9:00 a.m. on the next business day. For purposes of notice, the addresses
and telefax number of the parties shall. until changed as herein provided, be
as follows:

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 i.

 	
 If to the Mortgagee, at:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 CDC Mortgage Capital Inc.

 
	
  

 	
  

 	
 9 West 57th Street

 
	
  

 	
  

 	
 New York, New York 10019

 
	
  

 	
  

 	
 Attn: Gary DiGiuseppe

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Telecopy No.: (212) 891-5777

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 With a copy to:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Kaye, Scholer, Fierman,
 Hays & Handler. LLP

 
	
  

 	
  

 	
 425 Park Avenue

 
	
  

 	
  

 	
 New York. New York 10022

 
	
  

 	
  

 	
 Attn: Stephen Gliatta,
 Esq.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Telecopy No.: (212)
 836-7156

 
	
  

 	
  

 	
  

 
	
  

 	
 ii.

 	
 If to the Tenant, at:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Coty Inc.

 
	
  

 	
  

 	
 1325 Avenue of the
 Americas

 
	
  

 	
  

 	
 34th Floor

 
	
  

 	
  

 	
 New York, New York 10019

 
	
  

 	
  

 	
 Attention: 

 	
 Mr. Steven Ford

 
	
  

 	
  

 	
  

 	
 Mr. Frank Suozzi

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Telecopy No.: (212)
 479-4383

 

5

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 With a copy to:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Davis Polk & Wardwell

 
	
  

 	
  

 	
 450 Lexington Avenue

 
	
  

 	
  

 	
 New York, New York 10017

 
	
  

 	
  

 	
 Attn: Thomas Patrick Dore,
 Jr., Esq.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Telecopy No.: (212) 450-5738

 

          b.
Successors
and Assigns. This Agreement shall bind and benefit the parties, their successors and assigns, any Successor Landlord, and its successors and assigns.
If Mortgagee assigns the
Mortgage, then upon delivery to Tenant
of written notice thereof accompanied by the assignee’s written assumption of
all obligations under this Agreement, all liability of the assignor shall
terminate. If Tenant consists of more than one person or
entity, the representations, warranties, covenants and obligations of such persons and entities hereunder shall be joint and several. A separate action may be brought or prosecuted against any
such person or entity comprising Tenant, regardless of whether the action is
brought or prosecuted against the other persons or entities comprising Tenant,
or whether such persons or entities are joined in the action. Mortgagee may compromise or settle with anyone or more of the persons or entities
comprising Tenant for such sums, if any, as it may see fit and may in its
discretion release anyone or more of such persons or entities from any further
liability to Mortgagee without impairing, affecting or releasing the right of Mortgagee to proceed against any one or more of the persons or
entities not so released.

          c.
Entire
Agreement. This Agreement constitutes the entire
agreement between Mortgagee and Tenant regarding the subordination of the Lease
to the Mortgage and the rights and obligations of Tenant and Mortgagee as to
the subject matter of this Agreement.

          d.
Interaction
with
Lease
and with Mortgage. If
this Agreement conflicts with the Lease, then this Agreement shall govern as
between the parties and any Successor Landlord, including upon any attornment
pursuant to this Agreement. This Agreement supersedes. and
constitutes full compliance with, any provisions in the Lease that provide for
subordination of the Lease to, or for delivery of nondisturbance agreements by
the holder of, the Mortgage.

          e.
Mortgagee’s
Rights and Obligations. Except as expressly provided for in this
Agreement, Mortgagee
shall have no obligations to Tenant with respect to the Lease. If an attornment
occurs between Successor Landlord and Tenant pursuant to this Agreement, then
all rights and obligations of Mortgagee under this Agreement shall terminate,
without thereby affecting in any way the rights and obligations of Successor
Landlord provided for in this Agreement.

          f.
Interpretation;
Governing
Law. The interpretation, validity and enforcement
of this Agreement shall be governed by and construed under the internal laws of
the State in which the Leased Premises are located,
excluding such State’s principles of conflict of laws.

6

          g.
Amendments.
This Agreement may be amended, discharged or terminated, or any of its
provisions waived, only by a written instrument executed by the party to be
charged.

          h.
Due
Authorization. Tenant represents to Mortgagee that it has full
authority to enter into this Agreement, which has been duly authorized by all
necessary actions. Mortgagee represents to Tenant that it has full authority to
enter into this Agreement, which has been duly authorized by all necessary
actions.

          i.
Execution. This Agreement may be executed in any number
of counterparts, each of which shall be deemed an original and all of which
together shall constitute one and the same instrument.

[THIS SPACE INTENTIONALLY LEFT BLANK]

7

IN WITNESS
WHEREOF, the Mortgagee and Tenant have caused this Agreement to be executed as
of the date first above written.

	
  

 	
  

 	
  

 
	
  

 	
 MORTGAGEE:

 
	
  

 	
  

 	
  

 
	
  

 	
 CDC Mortgage
 Capital Inc.

 
	
  

 	
 a New York
 corporation

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 
	
  

 	
  

 	
  

 
	
  

 	
 TENANT:

 
	
  

 	
  

 	
  

 
	
  

 	
 COTY INC., a
 Delaware corporation

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 

8

LANDLORD’S
CONSENT

          Landlord consents and agrees
to the foregoing Agreement, which was entered into at Landlord’s request. The
foregoing Agreement shall not alter, waive or diminish any of Landlord’s
obligations under the Mortgage or the Lease. The above Agreement discharges any
obligations of Mortgagee under the Mortgage and related loan documents to enter
into a nondisturbance agreement with Tenant. Landlord is not a party to the
above Agreement.

	
  

 	
  

 	
  

 
	
  

 	
 LANDLORD:

 
	
  

 	
  

 	
  

 
	
  

 	
 ONE PARK
 AVENUE TENANT LLC,

 
	
  

 	
 a New York
 limited liability company

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 

Dated:
__________________, 1999

9

MORTGAGEE’S
ACKNOWLEDGEMENT

	
  

 	
  

 
	
 STATE OF NEW
 YORK

 	
 )

 
	
  

 	
 :ss.

 
	
 COUNTY OF
 NEW YORK

 	
 )

 

          On
the ____ day of __________________, in the year _____________, before me, the
undersigned, personally appeared ______________________________, personally
known to me or proved to me on the basis of satisfactory evidence to be the
individual(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
capacity(ies), and that by his/her/their signature(s) on the instrument, the
individual(s), or the person upon behalf of which the individual(s) acted,
executed the instrument.

          IN
WITNESS WHEREOF, I hereunto set my hand and official seal.

	
  

 	
  

 
	
  

 	

 

 
	
  

 	
 Notary
 Public

 
	
 (NOTARIAL
 SEAL)

 	
  

 
	
  

 	
 My
 Commission Expires:

 

10

TENANT’S ACKNOWLEDGMENT

	
  

 	
  

 
	
 STATE OF NEW
 YORK

 	
 )

 
	
  

 	
 :ss.

 
	
 COUNTY OF
 NEW YORK

 	
 )

 

          On
the ____ day of ________________, in the year _________________, before me, the
undersigned, personally appeared, personally known to me or proved to me on the
basis of satisfactory evidence to be the individual(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 capacity(ies), and that by his/her/their
signature(s) on the instrument, the individual(s), or the person upon behalf of
which the individual(s) acted, executed the instrument.

          IN
WITNESS WHEREOF, I hereunto set my hand and official seal.

	
  

 	
  

 
	
  

 	

 

 
	
  

 	
 Notary
 Public

 
	
 (NOTARIAL
 SEAL)

 	
  

 
	
  

 	
 My
 Commission Expires:

 

11

LIST OF EXHIBITS

          If
any exhibit is not attached hereto at the time of execution of this Agreement,
it may thereafter be attached by written agreement of the parties, evidenced by
initialing said exhibit.

          Exhibit
“A” - Legal Description of the Land

12

SCHEDULE H

CONSTRUCTION STANDARDS

H-1

SCHEDULE H

MINIMUM
CONSTRUCTION STANDARDS

	
  

 	
  

 
	
 1.

 	
 Vertical Window Blinds or Solar Shades

 
	
  

 	
  

 
	
 a)

 	
 Window
 blinds shall be Graber 0-85 Dura-Vue Track, PVC vertical vanes, 31⁄2” wide, white.

 
	
  

 	
  

 
	
 b)

 	
 All windows must have
 Building Standard blinds or Solar Shades next to the glass. Tenant supplied
 drapes and curtains must be placed on the Tenant side of the blinds or Solar
 Shades and shall not interfere with the operation of the peripheral heating
 system.

 
	
  

 	
  

 
	
 c)

 	
 No nail or screw holes are
 permitted in the window mullion system.

 
	
  

 	
  

 
	
 2.

 	
 Doors and Hardware

 
	
  

 	
  

 
	
 a)

 	
 All corridor doors shall
 be 1 3/4” thick solid core wood full height with hardwood cherry face veneers
 and shall be DPC-l “Timberland Core” by Weyerhaeuser, or equal with
 transparent finish matching Halcon Wood finish #CHIIS4, Light Cherry; sample
 is available from the Owner’s Representative. All interior doors shall be
 13/4” thick solid core wood full height.

 
	
  

 	
  

 
	
 b)

 	
 Door frames in corridors
 shall be painted 16 gauge welded hollow metal. Use of knockdown door frames
 is not permitted in the corridors. but may be used within Tenant’s space if
 no fire-rating is required.

 
	
  

 	
  

 
	
 c)

 	
 Corridor doors and frames
 shall be fire rated and furnished with BSA labels.

 
	
  

 	
  

 
	
 d)

 	
 Locks shall be keyed and
 master-keyed to conform to Building Management’s requirements.

 
	
  

 	
  

 
	
 3.

 	
 Ceilings

 
	
  

 	
  

 
	
 a)

 	
 Acoustical
 tile for suspended ceilings shall be light colored; dark hues are not
 permitted. Minimum ceiling height shall be 8’6” high from top of slab.

 
	
  

 	
  

 
	
 b)

 	
 Ceiling
 suspension system shall be exposed tee suspension system equal to Armstrong Silhouette 9/16” Bolt-Slot system, intermediate duty. All system supporting components
 shall conform to New York City Code requirements. Ceiling tiles shall be 2’x2’
 grid size.

 
	
  

 	
  

 
	
 4.

 	
 Drywall 

 
	
  

 	
  

 
	
 a)

 	
 Stud size
 shall be either 2 1/2” or 3 5/8” installed on 16” centers or of size and/or
 spacing as code requirements dictate. Studs shall run from floor to slab
 above. All demising partitions shall conform to NYC code requirement and have
 sound attenuation blankets.

 

MINIMUM CONSTRUCTION STANDARDS (continued)

	
  

 	
  

 
	
 b)

 	
 Wallboard
 shall be 5/8” thick throughout (Fireside type where required) and installed
 vertically without horizontal joints. Long edges shall be tapered on the face
 side. Wallboard shall extend 4” minimum above finished ceilings if it does
 not extend to the slab above. Provide two diagonal braces to slab above at
 corridor door openings and on long runs (in excess of 20”-0”) of straight
 corridor partitions.

 
	
  

 	
  

 
	
 c)

 	
 Provide
 double studs at both jambs of corridor door frames with a header runner at
 top of door frames. Studs at corridor doorjambs and on tops of door frames
 must be screwed to runners at tops and bottoms, both sides. Wallboard at
 corridor jambs shall be screwed to each stud of the double stud arrangements.

 
	
  

 	
  

 
	
 d)

 	
 Walls
 abutting mullions shall have wallboard terminate in metal trim fastened to
 terminal stud only, not to window glazing beads.

 
	
  

 	
  

 
	
 e)

 	
 For slab to
 slab corridor partitions, apply tape and at least one coat of compound to
 joints above the ceiling line on both sides of wall.

 
	
  

 	
  

 
	
 5.

 	
 Heating Ventilating and Air Conditioning

 
	
  

 	
  

 
	
 a)

 	
 All
 automatic temperature controls will be Delta Direct Digital Controls (DDC)
 compatible with the base Building system installed by the Building’s BMS
 contractor.

 
	
  

 	
  

 
	
 b)

 	
 All interior
 zone air distribution will be Variable Air Volume (VAV). Equipped with
 Building standard Delta DDC Controls.

 
	
  

 	
  

 
	
 c)

 	
 Provide test
 taps/points at all VAV boxes.

 
	
  

 	
  

 
	
 d)

 	
 All
 connections to the condenser water system for supplemental cooling must be
 provided with temperature and pressure gauges at the supply and return
 connections. When connecting supplemental system to the Building condenser
 water risers, wet taps are required.

 
	
  

 	
  

 
	
 e)

 	
 Supplemental
 condenser water lines: In order to maximize the life of your supplemental
 piping, if installed, it is required to be properly flushed and passivated
 with chemicals prior to placing the system on line. To do this, the piping
 configuration must include all the required hose connections and bypass
 piping to permit the system to be flushed without having to have the unit on
 line. The building’s water treatment vendor will perform the flushing and
 passivation of the piping. The cost for this shall be the direct
 responsibility of the tenant.

 
	
  

 	
  

 
	
 f)

 	
 All
 supplemental cooling units must be connected to the building’s Building
 Management System (BMS) for status reporting.

 

MINIMUM
CONSTRUCTION STANDARDS (continued)

	
  

 	
  

 
	
 g)

 	
 All horizontal runouts
 from chilled water and condenser water risers shall be in copper pipe. All
 connections of copper pipe to steel risers will utilize a di-electric fitting
 for corrosion control.

 
	
  

 	
  

 
	
 h)

 	
 Local
 booster circulating pumps on connections to supplemental equipment must be
 provided with a
 control package which ensures maintenance of a minimum pressure differential
 of 5 psi between the supply and return risers when the building circulating
 pumps are in operation.

 
	
  

 	
  

 
	
 i)

 	
 Perimeter
 radiator panels shall remain accessible at all times. Twenty-four (24) inches
 clear space shall be maintained in front of all enclosures.

 
	
  

 	
  

 
	
 j)

 	
 Air
 Balancing: A Building Engineer must be present with the air balancer while
 they are performing this work. Advanced written notice of at least three
 business days must be provided to the Building Management Office. As a
 minimum, the following areas must be provided to the Building Management
 Office. As a minimum, the following areas must be recorded: Supply air at the
 shaft connection, connection to your space (only necessary if multi-tenanted
 floor). It is understood that each diffuser will be measured and recorded. In
 addition to the aforementioned items, the return air leading from you space
 (only necessary if a multi-tenanted floor) and the return air connection are
 to be measured and recorded.

 
	
  

 	
  

 
	
 k)

 	
 Space
 temperature design: Your design engineer is to include design criteria on the
 mechanical drawings that will document the conditions under which the space
 or renovation is being designed for. Information such as , but not limited to
 the following shall be included: Number of watts per square foot, number of
 people per square foot, total CFM for space, supply air temperature at
 diffuser, average space temperature, outside air temperature, and outside
 relative humidity.

 
	
  

 	
  

 
	
 6.

 	
 Electrical

 
	
  

 	
  

 
	
 a)

 	
 Utilize a
 minimum wire size of #10 gauge for all home runs over 100 feet.

 
	
  

 	
  

 
	
 b)

 	
 Neutrals
 shall be a minimum wire size of #10 gauge.

 
	
  

 	
  

 
	
 c)

 	
 Maintain the
 integrity of any constant circuits for night lights, exit lights, etc.

 
	
  

 	
  

 
	
 d)

 	
 Maintain the
 continuity of the Building fire alarm system at all times.

 
	
  

 	
  

 
	
 e)

 	
 Where the
 installation utilizes portions of a previously installed system all
 abandoned/unused branch circuits must be fully removed back to their source.

 
	
  

 	
  

 
	
 7.

 	
 Plumbing

 
	
  

 	
  

 
	
 a)

 	
 Provide
 insulation on all water piping.

 
	
  

 	
  

 
	
 b)

 	
 Provide
 individual electric hot water heaters for all private pantries and toilets.

 

MINIMUM
CONSTRUCTION STANDARDS (continued)

	
  

 	
  

 
	
 c)

 	
 Galvanized
steel pipe for domestic hot and cold water piping is not permitted. 

 
	
  

 	
  

 
	
 d)

 	
 Provide
 branch control valves on all runouts to fixtures or fixture groups.

 
	
  

 	
  

 
	
 8.

 	
 Class “E”

 
	
  

 	
  

 
	
 a)

 	
 All life
 safety devices to be used, must be approved by the Building’s Class “E”
 vendor. No substitution of devices may be used unless written permission is
 provided by the Owner or authorized representative.

 
	
  

 	
  

 
	
 b)

 	
 A
 combination heat/smoke detector shall be installed, at the tenant’s sole
 cost, in any room/area regardless of square footage, that is not protected by
 a sprinkler head. This requirement is not intended to substitute a detector
 for a sprinkler.

 
	
  

 	
  

 
	
 c)

 	
 Any testing
 of new devices and automatic functions must commence and be completed outside
 the normal building hours of 8:00 A.M. to 6:00 P.M., Monday through Friday,
 excluding Building Holidays. Advance arrangements of a minimum of five
 working days must be provided to the Building Management Office.

 
	
  

 	
  

 
	
 As a minimum the following
 must be on site during the test: Building Fire Safety Director, the
 Electrician who performed the installation and the appropriate number of
 technicians from the Building’s Class ‘“E” Vendor. All costs pertaining to
 this testing shall be the sole responsibility of the tenant. Note: Prior to
 the commencement of the testing of any new device, three revised copies of
 the Class “E” documentation, including but not limited to the zone list shall
 be on site the day before for review by the Fire Safety Director.

 
	
  

 	
  

 
	
 9.

 	
 General

 
	
  

 	
  

 
	
 a)

 	
 All
 mechanical equipment, piping, switches, panels, conduits, etc. are to be
 painted in accordance with the approved building color coding system. All
 floor and walls in the mechanical/electrical rooms also are to be painted in
 accordance with the same guidelines.

 
	
  

 	
  

 
	
 a)

 	
 Any work to
 be performed by Tenant or multi-tenant floors is subject to Owner’s approval.

 

SCHEDULE I

PLAQUE SPECIFICATIONS

          The Plaque
shall be 151⁄4 inches in height and 441⁄4 inches in width, and shall be located on
the southerly side of the front entrance of the Building. The Plaque shall be
constructed of the same material and contain the same type of lettering as the
CHF plaque located on the north side of the front entrance of the Building. The
Plaque shall in all other respects be subject to the approval of Landlord in
its sole discretion.

I-1

MICHAEL B. ESTABROOKS
VICE PRESIDENT AND TREASURER  

September 20, 1999

One Park Avenue Tenant LLC

c/o Argent Ventures LLC

551 Fifth Avenue, 34 Floor

New York, New York 10017

Dear Sir:

CONFIDENTIALITY
AGREEMENT

In
connection with the evaluation by One Park Avenue Tenant LLC (“you”) of Coty
Inc., a Delaware corporation (“the Company”), in connection with a possible
lease of space at One Park Avenue, New York City to the Company (hereafter, the
“Transaction”), you will obtain certain proprietary business information,
whether written, oral, in computer-format or otherwise, whether gathered by
inspection or observation, and disclosed after the date of this Agreement,
which information shall be referred to as “Confidential Material.”

The
term “Confidential Material” includes all information which is proprietary to the
Company or proprietary to others and entrusted to the Company, whether or not
trade secrets. Confidential Material includes but is not limited to information
relating to business plans and to business as conducted or anticipated to be
conducted and relating to past, current or anticipated products or services.
Confidential Material also includes but is not limited to financial statements;
operating and strategic plans; projections or forecasts of financial results;
technical notebook records; patent applications; machine, equipment, process
and product designs including any drawings and descriptions thereof; unwritten
knowledge and “know-how”; operating instructions; training manuals; Company
computer programs and print-outs; production and development processes and
costs thereof; raw material costs; selling costs; delivery costs; production
schedules; customer lists; customer buying and other customer-related records;
names and addresses of suppliers and vendors; tax information; mailing lists;
product sales records; territory listings; market surveys; marketing plans;
long-range plans; salary information; contracts; and correspondence.

The
term “you” includes any and all of your directors, officers, employees or
agents.

COTY INC.

1325 AVENUE OF THE AMERICAS NEW YORK, N.Y. 10019 TEL (212) 479 4300 FAX (212)
479 4399

Confidentiality

You agree
that:

	
  

 	
  

 
	
 1.

 	
 You shall not disclose Confidential Material to any third party
 except as specifically provided herein;

 
	
  

 	
  

 
	
 2.

 	
 You will strictly limit the number of copies you make of Confidential
 Material, and number and maintain a log of such copies as to the recipients
 thereof;

 
	
  

 	
  

 
	
 3.

 	
 You will disclose information contained in the Confidential Material
 and copies of the Confidential Material to only those of your directors,
 partners, lenders, prospective purchasers, officers, employees, agents,
 attorneys, accountants, and advisors (hereafter, the “Representatives”) who
 have a need to know, and then only if those Representatives agree in writing
 to be individually bound by this Agreement;

 
	
  

 	
  

 
	
 4.

 	
 You and your Representatives shall use the Confidential Material
 solely for the purpose of the Transaction;

 
	
  

 	
  

 
	
 5.

 	
 You are responsible for any breach of this Agreement by you or your
 Representatives;

 
	
  

 	
  

 
	
 6.

 	
 If the Transaction does not occur, within five (5) days after being
 requested by the Company, you and your Representatives shall promptly return
 or deliver to the Company all material (in whatever medium) containing or
 reflecting any information in the Confidential Material (whether prepared by
 the Company or otherwise) and all copies thereof. The portion of the
 Confidential Material consisting of all documents, including memoranda, notes
 and other writings whatsoever prepared by you or your Representatives based
 on the information in the Confidential Material shall be destroyed, and upon
 request such destruction shall be confirmed in writing to the Company by an
 authorized officer supervising such destruction; and

 
	
  

 	
  

 
	
 7.

 	
 Notwithstanding your compliance with item 6 above, you and your
 Representatives will continue to be bound by all the provisions of this
 Agreement.

 

The
foregoing confidentiality provisions will not apply to any Confidential
Material which (i) was in your possession (other than as a result of your
wrongful act) prior to any disclosure thereof to you by or on behalf of the
Company and is provable by written records; (ii) is or becomes public
information other than through your breach of this Agreement; (iii) is obtained
on a non-confidential basis from a source other than the Company, which source
has a lawful right to disclose such Confidential Material; or (iv) is required
to be disclosed by applicable law, court order or other legal process;
provided, however, in the event of a demand for a disclosure pursuant to this
clause (iv), you agree to promptly notify the Company, in order to give the

2

Company the opportunity to
seek a protective order or other appropriate remedy and/or waive compliance
with the terms of this Agreement. In the event that such protective order or
other remedy is not obtained, or that the Company waives compliance with the
provisions hereof, you agree to furnish only that portion of the Confidential
Material which you are advised by opinion of counsel is legally required and to
exercise your commercially reasonable efforts to obtain assurance that
confidential treatment will be accorded such Confidential Material.

Waiver

You
understand and acknowledge that the Confidential Material (other than the
Company’s audited Financial Statements) is being provided without any
representation or warranty by the Company as to its accuracy or completeness.
You agree that the Company and its directors, officers, employees and agents
shall not have any liability to you or your Representatives from the use of the
Confidential Material.

Equitable Relief

You
agree and acknowledge that the Confidential Material has competitive value and
significant damage could result if it were disclosed or used in violation of
this Agreement. You acknowledge that, in the event of any breach of this
Agreement, the Company may be irreparably harmed and may not be made whole by
monetary damages. For this reason, you agree that the Company, in addition to
any other remedy to which it may be entitled in law or in equity, will be entitled
to an injunction to prevent a breach of this Agreement and/or to compel
specific performance of this Agreement. You agree not to oppose the granting of
equitable relief on the grounds that money damages are adequate, and you agree
to waive, and to cause your Representatives to waive, any requirements for the
securing or posting of any bond in connection with such remedy.

General

You
agree that no failure or delay by the Company in enforcing any provision of
this Agreement shall operate as a waiver thereof nor shall any single or
partial exercise thereof preclude any other or further exercise of any right,
power or privilege hereunder. Any waiver, to be effective, must be in writing
and signed by the party to be charged with the waiver.

This
Agreement shall be governed by and construed under the laws of the State of New
York (excluding its choice of law provisions) and shall be for the benefit of
the Company and its respective successors and assigns. This Agreement is not
assignable by you or your Representatives to any person or entity whatsoever
without the prior written consent of Company, which consent may be withheld in
the Company’s sole discretion. Any attempted assignment without such written
consent shall be null and void.

3

Each
person signing this Agreement represents that he or she has full authority to
execute this Agreement on behalf of the respective signatory party.

The
provisions of this Agreement are severable, and if any provision is determined
to be void or unenforceable, in whole or in part, the remaining provisions of
this Agreement shall nevertheless be binding and enforceable.

This
Agreement expresses the entire agreement of the parties with respect to the
subject matter hereof and all prior or contemporaneous agreements or negotiations
are hereby superseded. This Agreement may be modified or amended only in
writing signed by all parties hereto.

Please
sign both copies of this Agreement and return one to me. Your execution of this
letter will indicate your intention to be legally bound hereby.

Very truly yours,

/s/ Michael B. Estabrooks

Coty Inc. 

Michael B. Estabrooks 

Vice President and Treasurer

Accepted and Agreed to:

One Park
Avenue Tenant LLC

	
  

 	
  

 	
  

 
	
 By:

 	
 /s/ ILLEGIBLE

 	
  

 
	
  

 	

 

 	
  

 

	
  

 	
  

 	
  

 
	
 Title:

 	
 Authorized Signatory

 	
  

 
	
  

 	

 

 	
  

 

	
  

 	
  

 	
  

 
	
 Dated:

 	
 9/23/99

 	
  

 
	
  

 	

 

 	
  

 

4

COTY INC.

1325 Avenue of the Americas - 34th Floor

New York, New York 10019

October 29, 1999

One Park Avenue Tenant LLC

c/o Argent Ventures LLC

551 Fifth Avenue - 34th Floor

New York, New York 10176

	
  

 	
  

 	
  

 
	
  

 	
 Re:

 	
 Lease (the “Lease”)
 between One Park Avenue Tenant LLC

 
	
  

 	
  

 	
 (“Landlord”) and
 Coty Inc. (“Tenant”) for the Fourth and Fifth floors

 
	
  

 	
  

 	
  (the “Premises”) at One
 Park Avenue (the
 “Building”)                        

 

Dear Sir:

This letter confirms that
Coty Inc. will deliver the security deposit to One Park Avenue Tenant LLC as
required under Article 31 of the Lease on or before the close of
business on Monday, November 1, 1999. Failure by Coty Inc. to so deliver such
security shall be deemed an Event of Default under the Lease.

Very truly yours,

	
  

 	
  

 	
  

 
	
 Coty Inc.

 
	
 Name:

 	
 /s/ ILLEGIBLE

 	
  

 
	
  

 	

 

 	
  

 

	
  

 	
  

 	
  

 
	
 Title:

 	
 SVP - Finance

 	
  

 
	
  

 	

 

 	
  

 

Agreed and Accepted:

One Park
Avenue Tenant LLC

	
  

 	
  

 	
  

 
	
 Name:

 	
 /s/ ILLEGIBLE

 	
  

 
	
  

 	

 

 	
  

 

	
  

 	
  

 	
  

 
	
 Title:

 	
 Authorized
 Signatory

 	
  

 
	
  

 	

 

 	
  

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ONLY TYPEWRITTEN

 	
  

 	
 DEPARTMENT OF ENVIRONMENTAL PROTECTION

 	
 Page 1 of _______

 
	
 APPLICATIONS WILL

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 BE ACCEPTED

 	
  

 	
  

 	
  

 	
  

 	
 FOR OFFICE
 PURPOSES ONLY

 
	
  

 	
  

 	
  

 	
 NOT AN ASBESTOS

 	
 1.  

 	
   ________________________________  

 
	
  

 	
  

 	
  

 	
 PROJECT

 	
  

 	
  

 
	
 NOTE: 

 	
 THIS FORM IS NOT COMPLETED
 IF THERE IS NO FRIABLE ASBESTOS CONTAINING MATERIAL PRESENT OR IF THE TOTAL
 AMOUNT OF FRIABLE CONTAINING MATERIAL IS 10 SQUARE FEET OR LESS, OR IS 25
 FEET LINEAR OR LESS, OR IS NORMALLY NONFRIABLE ACM (AS PER 10 CFR PART
 81.141) IS PRESENT IN ANY AMOUNT

 	
  

 	
  

 	
 NYC

 ______

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 ACP5 Fee $

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
 NYC
 Dept. of Environmental Protection

 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 ZIP

 
	
  

 	
 2.

 	
 FACILITY
 ADDRESS  One Park Avenue                        BORO
  Manhattan       CODE                       10016      

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 AKA                                         N/A                                        
  3. BLOCK #                                            4. LOT # 1          

 
	
  

 	
  

 	
  

 
	
  

 	
 5.

 	
 BUILDING
 OWNER             One
 Park Avenue Tenant
 LLC                            
 TEL. #(212)            532
 - 3757                

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 ZIP

 
	
  

 	
 6.

 	
 ADDRESS                             335
 Madison
 Avenue                
 STATE   NY          
 CODE                     10017         

 
	
  

 	
  

 	
  

 
	
  

 	
 7.

 	
 CONTACT
 PERSON          Michael
 Havlurls                        
 8. TEL. #(212)                            532
 -
 3757              

 
	
  

 	
  

 	
  

 
	
  

 	
 9.

 	
 DESCRIPTION
 OF ENTIRE SCOPE OF WORK General Construction, Mechanical, Plumbing, Fire
 Alarm        

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 and
 Sprinkler as per drawings dated 4/5 & 14/99 by Horowitz/Herman
 Architects, P.C.                                           

 
	
  

 	
  

 	
  

 
	
  

 	
 10.

 	
 ESTIMATED
 START DATE     9/22/99   ESTIMATED
 COMPLETED DATE     9/26/00    OF
 THE ENTIRE SCOPE OF WORK.

 
	
  

 	
  

 	
  

 
	
  

 	
 11.

 	
 I,      Larry Jones    ,
 HAVE CONDUCTED AN ASBESTOS INVESTIGATION ON     9/9/99    IN ACCORDANCE WITH THE PROCEDURES
 REQUIRED BY THE NYC DEP ASBESTOS CONTROL PROGRAM REGULATIONS AND DECLARE THAT
 AT SAID FACILITY ADDRESS, THE

 
	
  

 	
  

 	
  

 
	
  

 	
 o a.

 	
 premises
 to be demolished are yea of any asbestos containing material (ACM)

 
	
  

 	
 o b.

 	
 premise
 to be demolished contain 10 square feet or less or 26 linear feet or less of
 friable ACM or of normally nonmarble ACM that demolition forces may make
 friable – all ACM shall be removed according to the NYC DOI ICR GO or the NYC
 DEP Asbestos Regulations

 
	
  

 	
þ c.

 	
 cumulative
 surfaces of relevant structure(s) affected by an alteration or plumbing
 repair are free of any friable ACM and free of normally nonfriable ACM that
 alteration or plumbing repair increase may make friable

 
	
  

 	
 o d.

 	
 cumulative
 surfaces of relevant structure(s) abatement by an alteration or plumbing
 repair contain 10 square feet or less or 2b linear feet or less of friable
 ACM or of normally nonfriable ACM that alteration or plumbing repair forces
 may make friable removal as in b.

 
	
  

 	
 o e.

 	
 normally
 nonfriable ACM shall be disturbed/removed in accordance with the NYC DOL ICR
 b8 or the NYC DEP Asbestos Regulations: Sq Ft ______________________

 
	
  

 	
 o f.

 	
 friable
 ACM and/or normally nonfriable ACM will NOT be disturbed during
 alteration/plumbing repair/ modification/renovation. Friable ACM Sq Ft
 ____________________ Lin Ft ___________________: Nonfriable ACM Sq Ft
 _______________________

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 COMPLETE AND THOROUGH ASBESTOS INVESTIGATION PERFORMED OF

 
	
 STORY

 (include cellar

 and basement)

 	
 DESCRIBE SECTION OF 

 FLOOR

 (e.g. entire east wing, 

 _______

 boiler room, lobby, ____)

 	
 ALL FRIABLE 

 SURFACING MATERIALS 

 INCLUDING FRIABLE 

 ACM AND NORMALLY 

 NONFRIABLE ACM

 	
 NUMBER

 OF SAMPLES 

 ANALYZED

 	
 ASBESTOS PRESENT

 
	
 YES  

 	
 NO  

 
	
   3,
 4 & 5

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
   Entire

 	
   Wall
 & Ceiling Plaster

 	
 9

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 13.

 	
 NAME OF
 LABORATORY THAT ANALYZED SAMPLES           Ambient
 Labs,
 Inc.                    
              

 
	
  

 	
 14.

 	
 FLAP #
                  10865                                        
               NVLAP
 #  101618-D
                         

 
	
  

 	
  

 	
          NYC DEPT. OF NAME
 IDENTIFICATION                            U.S.
 DEPT. OF NON_____ _____

 
	
  

 	
 15.

 	
 DATE(S)
 SAMPLES ANALYZED        9/21/99       
                                                                                

 
	
  

 	
  

 	
  

 
	
  

 	
 AND THAT THE
 INFORMATION PROVIDED HEREIN IS TRUE AND COMPLETE

 	
  

 	
 SEAL OF THE 

 NYC DEP 

 CERTIFIED 

 ASBESTOS 

 INVESTIGATOR

 	
  

 
	
  

 	
 SIGNED FOR
 AMBIENT LABS, INC. PROJECT ______________

 	
  

 	
  

 
	
  

 	
 16.

 	
 ____ /s/
 ILLEGIBLE
                  
                  
                 
          
                        
           9/21/99     
           

 	
  

 	
  

 
	
  

 	
  

 	
 SIGNATURE OF NYC DEPT
 _______________         
                
             DATE

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 17.

 	
 __________________________________________________________

 	
  

 	
  

 
	
  

 	
  

 	
 NYC DEPT ASBESTOS
 INVESTIGATION CERTIFICATE NUMBER

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 NOTE:
 STORAGE, TRANSPORTATION AND DISPOSAL OF ASBESTOS CONTAMINATED

 WASTES ARE REGULATED BY THE NYC DEPARTMENT OF SANITATION (LLTD/11)

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 THE
 PIECEMEAL CARRYING OUT OF AN OPERATION TO AVOID COVERAGE BY A STANDARD THAT

 APPLIES ONLY TO OPERATIONS LARGER THAN A SPECIFIED SIZE IS A VIOLATION.

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 ACM – Asbestos Containing Material =
 Material Containing Greater Than 1% Asbestos

 

	
  

 
	
 ANY
 MODIFICATION OR VARIANCE FROM INFORMATION PROVIDED ON THIS FORM MUST BE
 REPORTED IMMEDIATELY IN WRITING DIRECTLY TO THE NYC DEPARTMENT OF
 ENVIRONMENTAL PROTECTION ASBESTOS CONTROL PROGRAM/NYC DEPT. OF ENVIRONMENTAL
 PROTECTION, 59-17 JUNCTION BLVD. – 8TH FLOOR, ELMHURST, NEW YORK
 11575-5107

 

ACP FILE COPY

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