Document:

PURCHASE AND SALE AGREEMENT

                                     BETWEEN

                         SMP REAL ESTATE LLC, AS SELLER

                                       AND

             EX II NORTHERN BOULEVARD ACQUISITION LLC, AS PURCHASER

                             AS OF DECEMBER 21, 2007

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                                                      TABLE OF CONTENTS

                                                                                                                PAGE

<S>             <C>                                                                                            <C>
ARTICLE 1             DEFINITIONS................................................................................1

ARTICLE 2             PURCHASE AND SALE..........................................................................6

         2.1      Agreement to Sell and Purchase the Property....................................................6

         2.2      Permitted Exceptions...........................................................................7

         2.3      Earnest Money..................................................................................7

         2.4      Purchase Price.................................................................................7

         2.5      Closing........................................................................................7

ARTICLE 3             PURCHASER'S INSPECTION AND REVIEW RIGHTS...................................................8

         3.1      Due Diligence Inspections......................................................................8

         3.2      Condition of the Property......................................................................9

         3.3      Title and Survey..............................................................................14

         3.4      Service Contracts.............................................................................15

         3.5      Confidentiality...............................................................................15

ARTICLE 4             REPRESENTATIONS, WARRANTIES AND OTHER AGREEMENTS..........................................16

         4.1      Representations and Warranties of Seller......................................................16

         4.2      Knowledge Defined.............................................................................20

         4.3      Covenants and Agreements of Seller............................................................20

         4.4      Tenant Estoppel Certificate...................................................................22

         4.5      Representations and Warranties of Purchaser...................................................23

         4.6      Covenant of Purchaser to Comply with Environmental Remediation Easement.......................24

ARTICLE 5             CLOSING DELIVERIES, CLOSING COSTS AND PRORATIONS..........................................24

         5.1      Seller's Closing Deliveries...................................................................24

         5.2      Purchaser's Closing Deliveries................................................................26

         5.3      Closing Costs.................................................................................27

         5.4      Prorations and Credits........................................................................27

ARTICLE 6             CONDITIONS TO CLOSING.....................................................................29

         6.1      Conditions Precedent to Purchaser's Obligations...............................................29

         6.2      Conditions Precedent to Seller's Obligations..................................................30

ARTICLE 7             CASUALTY AND CONDEMNATION.................................................................30

         7.1      Casualty......................................................................................30

         7.2      Condemnation..................................................................................31

         7.3      Survival......................................................................................32

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                                                         (continued)
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ARTICLE 8             DEFAULT AND REMEDIES......................................................................32

         8.1      Purchaser's Default...........................................................................32

         8.2      Seller's Default..............................................................................32

         8.3      Survival......................................................................................33

ARTICLE 9             ASSIGNMENT................................................................................33

         9.1      Assignment....................................................................................33

ARTICLE 10            BROKERAGE COMMISSIONS.....................................................................33

         10.1     Broker........................................................................................33

ARTICLE 11            MISCELLANEOUS.............................................................................34

         11.1     Notices.......................................................................................34

         11.2     Possession....................................................................................35

         11.3     Time Periods..................................................................................35

         11.4     Publicity.....................................................................................35

         11.5     Discharge of Obligations......................................................................36

         11.6     Severability..................................................................................36

         11.7     Construction..................................................................................36

         11.8     Sale Notification Letters.....................................................................36

         11.9     General Provisions............................................................................36

         11.10    Attorney's Fees...............................................................................37

         11.11    Counterparts..................................................................................37

         11.12    Effective Agreement...........................................................................37

         11.13    Certiorari....................................................................................37

         11.14    Defeasance....................................................................................37

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                              SCHEDULE OF EXHIBITS

Exhibit "A"             Description of Land
Exhibit "B"             List of Personal Property
Exhibit "C"             List of Existing Commission Agreements
Exhibit "D"             Form of Escrow Agreement
Exhibit "E"             List of Existing Environmental Reports
Exhibit "F"             Description of Existing Survey
Exhibit "G"             List of Lease Documents
Exhibit "H"             Municipal Searches
Exhibit "I"             Litigation Schedule
Exhibit "J"             List of Service Contracts
Exhibit "K"             Form of Tenant/Seller Estoppel Certificate
Exhibit "K-1"           Environmental Remediation Easement
Exhibit "K-2"           Environmental Insurance Policies
Exhibit "L"             List of Property Tax Appeals

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                          SCHEDULE OF CLOSING DOCUMENTS

Schedule 1              Form of Assignment and Assumption of Leases
Schedule 2              Form of Assignment and Assumption of Service Contracts
Schedule 3              Form of Bill of Sale to Personal and Intangible Property
Schedule 4              Form of Seller's FIRPTA Affidavit
Schedule 5              Form of Lease

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                           PURCHASE AND SALE AGREEMENT

                            37-18 NORTHERN BOULEVARD

                           LONG ISLAND CITY, NEW YORK

                  THIS PURCHASE AND SALE AGREEMENT (the "Agreement"), made and
entered into as of the 21st day of December, 2007, by and between SMP Real
Estate LLC, a Delaware limited liability company ("Seller"), and Ex II Northern
Boulevard Acquisition LLC, a Delaware limited liability company ("Purchaser").

                              W I T N E S S E T H:
                               -------------------

                  WHEREAS, Seller desires to sell that certain improved real
property located at street address 37-18 Northern Boulevard, Long Island City,
New York, together with certain related personal and intangible property of
Seller, and Purchaser desires to purchase such real, personal and intangible
property; and

                  WHEREAS, the parties hereto desire to provide for said sale
and purchase on the terms and conditions set forth in this Agreement;

                  NOW, THEREFORE, for and in consideration of the premises, the
mutual covenants and agreements hereinafter set forth, and for other good and
valuable consideration, the receipt, adequacy, and sufficiency of which are
hereby acknowledged by the parties hereto, the parties hereto hereby covenant
and agree as follows:

                              ARTICLE 1 DEFINITIONS

                  For purposes of this Agreement, each of the following
capitalized terms shall have the meaning ascribed to such terms as set forth
below:

                  "ACO" shall have the meaning ascribed thereto in Section
4.3(e) hereof.

                  "ACO Environmental Work" shall have the meaning ascribed
thereto in Section 4.3(e) hereof.

                  "Arbitrator" shall have the meaning ascribed thereto in
Section 3.2(f) hereof.

                  "Assignment and Assumption of Leases" shall mean the form of
assignment and assumption of Leases to be executed and delivered by Purchaser
and Seller, at the Closing in the form attached hereto as SCHEDULE 1.

                  "Assignment and Assumption of Service Contracts" shall mean
the form of assignment and assumption of the Service Contracts to be executed
and delivered by Purchaser and Seller, at the Closing in the form attached
hereto as SCHEDULE 2.
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                  "Bill of Sale" shall mean the form of bill of sale to the
Personal Property to be executed and delivered to Purchaser by Seller as to the
Personal Property, at the Closing in the form attached hereto as SCHEDULE 3.

                  "Broker" shall have the meaning ascribed thereto in SECTION
10.1 hereof.

                  "Business Day" shall mean any day other than a Saturday,
Sunday or other day on which banking institutions in the State of New York are
authorized by law or executive action to close.

                  "Closing" shall mean the consummation of the purchase and sale
of the Property pursuant to the terms of this Agreement.

                  "Closing Date" shall have the meaning ascribed thereto in
SECTION 2.5 hereof.

                  "Closing Documents" shall mean any certificate, instrument or
other document delivered pursuant to this Agreement.

                  "Commission Agreement" shall have the meaning ascribed thereto
in SECTION 4.1(F) hereof, and such agreement is more particularly described on
EXHIBIT "C" attached hereto and made a part hereof.

                  "Deed" shall have the meaning ascribed thereto in SECTION
5.1(A).

                  "Deliverables" shall have the meaning ascribed thereto in
Section 4.3(e) hereof.

                  "Due Diligence Material" shall have the meaning ascribed
thereto in SECTION 3.5 hereof.

                  "Earnest Money" shall mean the sum of FOUR MILLION SIXTY
THOUSAND DOLLARS ($4,060,000.00) to be paid by Purchaser to Escrow Agent
hereunder as provided in SECTION 2.3 hereof and in the Escrow Agreement, plus
any interest earned thereon.

                  "Effective Date" shall mean the date upon which Seller and
Purchaser shall have delivered a fully executed counterpart of this Agreement to
the other, which date shall be inserted in the space provided on page 1 hereof.
For the purposes of determining the Effective Date, a facsimile signature shall
be deemed an original signature.

                  "Environmental Insurance" shall have the meaning ascribed
thereto in SECTION 3.2(C) hereof.

                  "Environmental Law" shall mean any law, ordinance, rule,
regulation, order, judgment, injunction or decree now or hereafter relating to
pollution or substances or materials which are considered to be hazardous or
toxic, including, without limitation, the Resource Conservation and Recovery Act
(42 U.S.C. ss. 6901 et seq.), the Comprehensive Environmental Response,
Compensation and Liability Act (codified in various sections of 26 U.S.C., 33
U.S.C., 42 U.S.C. and 42 U.S.C. ss. 9601 et seq.), the Hazardous Materials
Transportation Act (49 U.S.C. ss. 1801 et seq.), the Clean Water Act (33 U.S.C.

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ss. 1251 et seq.), the Safe Drinking Water Act (21 U.S.C. ss. 349, 42 U.S.C. ss.
201 et seq. and ss. 300 et seq.), the Toxic Substances Control Act (15 U.S.C.
ss. 2061 et seq.), the Emergency Planning and Community Right to Know Act (42
U.S.C. ss. 1100 et seq.), the Clean Air Act (42 U.S.C. ss. 7401 et seq.), and
any state and local environmental laws, all amendments and supplements to any of
the foregoing and all regulations and publications promulgated or issued
pursuant thereto.

                  "Environmental Liabilities" shall have the meaning ascribed
thereto in SECTION 3.2(B) hereof.

                  "Environmental Work" shall have the meaning ascribed thereto
in SECTION 4.3(E) hereof.

                  "Escrow Agent" shall mean Kelley Drye & Warren LLP, with an
address at 101 Park Avenue, New York, New York 10178.

                  "Escrow Agreement" shall mean that certain Escrow Agreement in
the form attached hereto as EXHIBIT "D" entered into among Seller, Purchaser and
Escrow Agent with respect to the Earnest Money.

                  "Existing Environmental Reports" shall mean those certain
reports, correspondence and related materials, if any, more particularly
described on EXHIBIT "E" attached hereto and made a part hereof.

                  "Existing Survey" shall mean that certain survey with respect
to the Land, as more particularly described on EXHIBIT "F" attached hereto and
made a part hereof.

                  "FIRPTA Affidavit" shall mean the form of FIRPTA Affidavit to
be executed and delivered to Purchaser at Closing by Seller in the form attached
hereto as SCHEDULE 4.

                  "Governmental Authority" shall have the meaning ascribed
thereto in SECTION 3.2(B) hereof.

                  "Hazardous Materials" shall mean any and all substances, mold
or organism which is toxic, explosive corrosive, flammable, infectious,
radioactive, carcinogenic, mutagenic or otherwise hazardous or any other
substances that might pose a hazard to health or safety, the removal of which is
required under any Environmental Law or the generation, manufacture, refining,
production, processing, treatment, storage, handling, transportation, transfer,
use, disposal, release, discharge, spillage, seepage or filtration of which is
regulated, restricted, prohibited or penalized under any Environmental Law
(including, without limitation, lead paint, asbestos, urea formaldehyde foam
insulation, petroleum and polychlorinated biphenyls).

                  "Improvements" shall mean all buildings, structures and
improvements now or on the Closing Date situated on the Land, including without
limitation, all parking areas and facilities, improvements and fixtures located
on the Land.

                  "Indemnitees" shall have the meaning ascribed thereto in
SECTION 3.2(B) hereof.

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                  "Intangible Property" shall mean all intangible property, if
any, owned by Seller and related to the Land, the Improvements and the Personal
Property, including without limitation, the rights and interests, if any, of
Seller in and to the following (to the extent assignable): (i) all assignable
plans and specifications and other architectural and engineering drawings for
the Land and Improvements; (ii) all assignable warranties or guaranties given or
made in respect of the Improvements or Personal Property; (iii) all transferable
consents, authorizations, variances or waivers, licenses, permits and approvals
from any governmental or quasi-governmental agency, department, board,
commission, bureau or other entity or instrumentality solely in respect of the
Land or Improvements; and (iv) all of the right, title and interest of Seller in
and to all Service Contracts that Purchaser agrees to assume (or is deemed to
have agreed to assume).

                  "Land" shall mean that certain tract or parcel of real
property located in Long Island City, New York, which is more particularly
described on EXHIBIT "A" attached hereto, together with all rights, privileges
and easements appurtenant to said real property, and all right, title and
interest, if any, of Seller in and to any land lying in the bed of any street,
road, alley or right-of-way, open or closed, adjacent to or abutting the Land.

                  "Leases" shall mean the leases identified on EXHIBIT "G"
attached hereto.

                  "Monetary Objection" or "Monetary Objections" shall mean (a)
any mortgage, deed to secure debt, deed of trust or similar security instrument
encumbering all or any part of the Property, (b) any mechanic's, materialman's
or similar lien (unless resulting from any act or omission of Purchaser or any
of its agents, contractors, representatives or employees or any tenant of the
Property), (c) the lien of ad valorem real or personal property taxes,
assessments and governmental charges affecting all or any portion of the
Property which are due and payable, and (d) any judgment of record against
Seller in the county or other applicable jurisdiction in which the Property is
located.

                  "Mortgage" shall have the meaning ascribed thereto in Section
11.15 hereof.

                  "Non-ACO Environmental Work" shall have the meaning ascribed
thereto in SECTION 4.3(E) hereof.

                  "Other Notices of Sale" shall have the meaning ascribed
thereto in SECTION 5.1(Q) hereof.

                  "Permitted Exceptions" shall mean, collectively, (a) liens for
taxes, assessments and governmental charges not yet due and payable with respect
to the Land and Improvements, (b) the Leases affecting the Land and
Improvements, (c) such state of facts set forth on the Existing Survey, (d) such
state of facts, if any, in addition to the state of facts set forth on the
Existing Survey, as would be disclosed by a current survey of the Land, provided
such additional state of facts, if any, would not render title to the Property
unmarketable, (e) Reservation of Easement set forth in deed dated May 11, 1911,
recorded May 31, 1911 in Liber 1751 Cp. 354, (f) Sidewalk Violation No. 2447/92
filed June 8, 1992, and (g) such other easements, restrictions and encumbrances
with respect to the Land and Improvements that do not constitute Monetary
Objections, and that are approved (or are deemed approved) by Purchaser in
accordance with the provisions of SECTION 3.3 hereof.

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                  "Personal Property" shall mean all carpeting, draperies,
appliances, personal property (excluding any computer software which is either
licensed to Seller or which Seller deems proprietary), machinery, apparatus and
equipment owned by Seller and currently used exclusively in the operation,
repair and maintenance of the Land and Improvements and situated thereon,
including, without limitation, as generally described on EXHIBIT "B" attached
hereto and made a part hereof. The Personal Property does not include any
property owned by tenants, contractors or licensees, and shall be conveyed by
Seller to Purchaser subject to depletions, replacements and additions in the
ordinary course of Seller's business.

                  "Property" shall have the meaning ascribed thereto in SECTION
2.1 hereof.

                  "Purchase Price" shall be the amount specified in SECTION 2.4
hereof.

                  "Purchaser Waived Breach" shall have the meaning ascribed
thereto in SECTION 4.1 hereof.

                  "Purchaser Consultation Matters" shall have the meaning
ascribed thereto in SECTION 3.2(E) hereof.

                  "Purchaser's Counsel" shall mean Stroock & Stroock & Lavan
LLP, 180 Maiden Lane, New York, New York, Attention: Brian Diamond, Esq.

                  "Purchaser's Environmental Insurance" shall have the meaning
ascribed thereto in SECTION 3.2(B) hereof.

                  "Purchaser's Investigation" shall have the meaning ascribed
thereto in SECTION 3.2(C) hereof.

                  "Purchaser's Investigation Workplan" shall have the meaning
ascribed thereto in SECTION 3.2(C) hereof.

                  "Release" shall mean any discharge, disposal, leaching,
emission, or spill of Hazardous Materials in violation of Environmental Law or
in such manner that would be reasonably likely to result in liability or an
obligation under Environmental Law to investigate and/or remediate such
Hazardous Material.

                  "ROD" shall have the meaning ascribed thereto in Section
3.2(e) hereof.

                  "Seller Estoppel Certificate" shall mean the certificate to be
provided by Seller in substantially the form attached hereto as EXHIBIT "K" if
and to the extent Seller fails to provide a Tenant Estoppel Certificate for each
subject tenant under a Lease.

                  "Seller Lease" shall mean the form of lease covering a portion
of the Property to be executed and delivered by Purchaser, as landlord, and
Standard Motor Products, Inc., as tenant, at the Closing in the form attached
hereto as Schedule 5.

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                  "Seller's Affidavit" shall mean the form of owner's affidavit
to be given by Seller at Closing to the Title Company in a form reasonably
acceptable to Seller and the Title Company.

                  "Seller's Counsel" shall mean Kelley Drye & Warren LLP, 101
Park Avenue, New York, New York 10178, Attention: Bud Holman, Esq.

                  "Service Contracts" shall mean all those certain contracts and
agreements more particularly described as Service Contracts on EXHIBIT "J"
attached hereto and made a part hereof relating to the repair, maintenance or
operation of the Land, Improvements or Personal Property which will extend
beyond the Closing Date, including, without limitation, all equipment leases.

                  "Survey" shall have the meaning ascribed thereto in SECTION
3.3 hereof.

                  "Taxes" shall have the meaning ascribed thereto in SECTION
5.4(A) hereof.

                  "Tenant Estoppel Certificate" shall mean the certificate to be
sought from the tenants under the Leases in substantially the form attached
hereto as EXHIBIT "K"; PROVIDED, HOWEVER, that in no event shall Seller be
obligated to deliver to Purchaser a Tenant Estoppel Certificate containing any
terms or items that are not expressly the obligation of tenant to certify
pursuant to the terms of its Lease.

                  "Tenant Inducement Costs" shall mean any out-of-pocket
payments required under a Lease to be paid by the landlord thereunder to or for
the benefit of the tenant thereunder which is in the nature of a tenant
inducement, including specifically, but without limitation, tenant improvement
costs, lease buyout payments, and moving, design, refurbishment and costs.

                  "Tenant Notice of Sale" shall have the meaning ascribed
thereto in SECTION 5.1(P) hereof.

                  "Title Company" shall mean Fidelity National Title Insurance
Company; provided, however, that Purchaser may obtain co-insurance (pursuant to
a "me-too" endorsement), as to not more than twenty-five percent (25%) of the
owner's policy, from Regal Title Agency.

                  "Title Commitment" shall have the meaning ascribed thereto in
SECTION 3.3 hereof.

                  "Title Notice" shall have the meaning ascribed thereto in
SECTION 3.3 hereof.

                          ARTICLE 2 PURCHASE AND SALE

         2.1 AGREEMENT TO SELL AND PURCHASE THE PROPERTY. Subject to and in
accordance with the terms and provisions of this Agreement, Seller agrees to
sell and Purchaser agrees to purchase, the following property (collectively, the
"Property"):

         (a) the Land;

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         (b) the Improvements;

         (c) all right, title and interest of Seller as "landlord" or "lessor"
            in and to the Leases;

         (d) the Personal Property; and

         (e) the Intangible Property.

         2.2 PERMITTED EXCEPTIONS. The Property shall be conveyed subject to the
matters which are, or are deemed pursuant to the terms of this Agreement to be,
Permitted Exceptions.

         2.3 EARNEST MONEY.

            (a) On December 24, 2007, Purchaser shall deliver the Earnest Money
to Escrow Agent by federal wire transfer, which Earnest Money shall be held and
released by Escrow Agent in accordance with the terms of the Escrow Agreement.

            (b) The Earnest Money shall be applied to the Purchase Price at the
Closing and shall otherwise be held, refunded, or disbursed in accordance with
the terms of the Escrow Agreement and this Agreement. Interest and other income
from time to time earned on the Earnest Money shall be earned for the account of
the party to which the Earnest money is refunded or disbursed, as applicable, by
Escrow Agent.

2.4 PURCHASE PRICE. Subject to adjustment and credits as otherwise specified in
this Section 2.4 and elsewhere in this Agreement, the purchase price (the
"Purchase Price") to be paid by Purchaser to Seller for the Property shall be
the sum of FORTY MILLION SIXTY HUNDRED THOUSAND DOLLARS ($40,600,000.00).

                  The Purchase Price shall be paid by Purchaser to Seller at the
Closing as follows:

            (a) The Earnest Money shall be paid by Escrow Agent to Seller at
Closing; and

            (b) At Closing, the balance of the Purchase Price, after applying,
as partial payment of the Purchase Price, the Earnest Money, and subject to
prorations and other adjustments specified in this Agreement, shall be paid by
Purchaser in immediately available funds to an account or accounts designated by
Seller.

         2.5 CLOSING. The consummation of the sale by Seller and purchase by
Purchaser of the Property (the "Closing") shall be held on or about sixty (60)
days subsequent to the date of this Agreement. The date of the Closing is
sometimes referred to as the "Closing Date". The transaction shall be closed
with the concurrent delivery of the documents of title and the payment of the
Purchase Price.

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               ARTICLE 3 PURCHASER'S INSPECTION AND REVIEW RIGHTS

         3.1 DUE DILIGENCE INSPECTIONS.

            (a) From and after the Effective Date until the Closing Date, Seller
shall permit Purchaser and its authorized representatives to inspect the
Property, to perform due diligence and environmental investigations, at such
times during normal business hours as Seller shall reasonably designate. All
such inspections shall be nondestructive in nature, and specifically shall not
include any physically intrusive testing, PROVIDED, HOWEVER, that Purchaser
shall be entitled to obtain groundwater samples from any existing groundwater
monitoring wells at the Property. All such inspections shall be performed in
such a manner to minimize any interference with the business of the tenants
under the Leases, and, in each case, in compliance with the rights and
obligations of Seller as landlord under the Leases. Purchaser agrees that
Purchaser shall make no contact with and shall not interview the tenants without
at least two (2) Business Days' advance written notice to Seller. All inspection
fees, appraisal fees, engineering fees and all other costs and expenses of any
kind incurred by Purchaser relating to the inspection of the Property shall be
solely Purchaser's expense. Seller reserves the right to have a representative
present at the time of making any such inspection and at the time of any such
interview with the tenant. Purchaser shall notify Seller not less than two (2)
Business Days in advance of making any such inspection.

            (b) If the Closing is not consummated hereunder for any reason other
than Seller's default, Purchaser shall promptly deliver to Seller (if
contractually permitted to do so) copies of all reports, surveys and other
information furnished to Purchaser by third parties in connection with such
inspections. This Section 3.1(b) shall survive the termination of this
Agreement.

            (c) To the extent that Purchaser or any of its representatives,
agents or contractors damages or disturbs the Property or any portion thereof,
Purchaser shall return the same to substantially the same condition which
existed immediately prior to such damage or disturbance. Purchaser hereby agrees
to and shall indemnify, defend and hold harmless Seller from and against any and
all expense, loss or damage which Seller may incur (including, without
limitation, reasonable attorney's fees actually incurred) as a result of any act
or omission of Purchaser or its representatives, agents or contractors
(collectively, "Purchaser's representatives") in connection with inspections of
the Property. Except for Purchaser's negligence, the foregoing indemnity shall
not include (x) any claims, demands, causes of action, losses, damages,
liabilities, costs or expenses (including without limitation attorneys' fees and
disbursements) that result from the discovery by Purchaser or Purchaser's
representatives of existing conditions on the Property, or (y) consequential,
indirect or special damages. Said indemnification agreement shall survive the
Closing, or earlier termination of this Agreement. Purchaser shall maintain and
shall ensure that Purchaser's consultants and contractors maintain commercial
general liability insurance in an amount not less than $2,000,000, combined
single limit, and in form and substance adequate to insure against all liability
of Purchaser and its consultants and contractors, respectively, and each of
their respective agents, employees and contractors, arising out of inspections
and testing of the Property or any part thereof made on Purchaser's behalf.
Purchaser agrees to provide to Seller a certificate of insurance with regard to
each applicable liability insurance policy prior to any entry upon the Property
by Purchaser or its consultants or contractors, as the case may be, pursuant to
this SECTION 3.1.

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         3.2 CONDITION OF THE PROPERTY.

            (a) Purchaser and Seller mutually acknowledge and agree that the
Property is being sold in an "AS IS, WHERE IS" condition and "WITH ALL FAULTS,"
known or unknown, contingent or existing, except as set forth in the
representations and warranties provided in this Agreement and the documents
executed and delivered in connection with the Closing (collectively, the
"Closing Documents"). Subject to the foregoing sentence, Purchaser has the sole
responsibility to fully inspect the Property, to investigate all matters
relevant thereto, including, without limitation, the condition of the Property,
and to reach its own, independent evaluation of any risks (environmental or
otherwise) or rewards associated with the ownership, leasing, management and
operation of the Property. Effective as of the Closing and except as expressly
set forth in this Agreement and/or the Closing Documents, Purchaser hereby
waives and releases Seller and its officers, directors, shareholders, partners,
agents, affiliates, employees and successors and assigns from and against any
and all claims, obligations and liabilities which Purchaser may have arising out
of or in connection with the Property. The foregoing release shall not be
applicable to Purchaser's right to implead or otherwise seek joinder of Seller
solely with respect to any claims brought against Purchaser by a third party
unaffiliated with Purchaser relating to personal injury or death that occurred
solely during Seller's period of ownership of the Property. Furthermore, this
release shall not applicable to any claims arising out of the express covenants,
representations, or warranties set forth in this Agreement that shall expressly
survive the Closing so long as the survival period is still in effect.

            (b) Except as otherwise expressly provided in this Subsection
3.2(b), to the fullest extent permitted by law, Purchaser does hereby
unconditionally waive and release Seller and its officers, directors,
shareholders, partners, agents, affiliates and employees from any present or
future claims and liabilities of any nature arising from or relating to the
presence or alleged presence of Hazardous Materials in, on, at, from, under or
about the Property or any adjacent property, including, without limitation, any
claims under or on account of any Environmental Law, regardless of whether such
Hazardous Materials are located in, on, at, from, under or about the Property or
any adjacent property prior to or after the date hereof (collectively,
"Environmental Liabilities"); PROVIDED, HOWEVER, that the foregoing release as
it applies to Seller, its officers, directors, shareholders, partners, agents,
affiliates and employees, shall not release Seller from any Environmental
Liabilities of Seller relating to any Hazardous Materials which may be placed,
located or released on the Property by Seller after the date of Closing.
Notwithstanding the foregoing release, Seller shall indemnify, defend and hold
Purchaser and Purchaser's representatives, successors and assigns, and any of
Purchaser's mortgagees or holder of deed of trust affecting the Property
(collectively, "Indemnitees"), harmless for and against: (i) any present or
future claims and liabilities of any nature asserted by any third parties other
than Governmental Authorities arising from the presence of any Hazardous
Materials on, in, under, about or emanating from the Property to the extent that
the third-party claim seeks to recover for losses, damages or injuries due to
the release of Hazardous Materials that are, or which are later alleged by such
third party to be, the particular Hazardous Materials which Seller is legally
obligated to remediate pursuant to the ACO (PROVIDED, HOWEVER, that in the case
of Hazardous Materials that are later alleged by a third party to be the

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particular Hazardous Materials which Seller is legally obligated to remediate
pursuant to the ACO, Seller shall reimburse Purchaser for all reasonable
expenses incurred by Purchaser in the defense of such claim; and PROVIDED
FURTHER that under no circumstances shall Seller have any obligation to
indemnify, defend, or hold Purchaser harmless hereunder with respect to any
claims or liabilities to the extent that they involve Hazardous Materials that
Seller did not cause to be released), and (ii) any present or future claims and
liabilities of any nature asserted by any Governmental Authority arising from
Seller's breach of Seller's representations, warranties and/or covenants in
subsections 4.1(m), 4.3(c) and/or 4.3(e) hereof, PROVIDED, HOWEVER, that Seller
shall have no such obligation to indemnify, defend and/or hold any of the
Indemnitees harmless for any such claim or liabilities unless the following
conditions are true as of the time that Purchaser and/or any of Purchaser's
representatives assert any claim against Seller seeking to enforce such
obligation: (i) Purchaser and, as the case may be, Purchaser's representatives,
have at all times fully cooperated with Seller in all respects in Seller's
performance of the Environmental Work, including without limitation, complying
with all of Purchaser's obligations pursuant to Subsection 4.6 and the
Environmental Remediation Easement, attached hereto as Exhibit K-1; and (ii)
neither Purchaser, any of Purchaser's representatives, the other Indemnitees,
nor any third party acting at Purchaser's direction or request or with
information provided to such third party by Purchaser, has interfered with
Seller's exclusive and absolute right to control all negotiations with the State
of New York and its relevant agencies, or any other federal, state or local
governmental authority having jurisdiction pursuant to any Environmental Law
concerning any and all aspects of the Environmental Work ("Governmental
Authority"), either before or after Closing. For purposes of the foregoing
sentence, the terms "interfered with" shall mean any communication of any type
whatsoever with any Governmental Authority whose effect is to increase the cost
or scope of the Environmental Work, PROVIDED, HOWEVER, that it shall not include
any oral or written communication that: (i) Purchaser is required by law or
judicial process to provide to any Governmental Authority if Purchaser has first
given prior written notice to Seller of Purchaser's intention to communicate
such information describing in reasonable detail the information to be provided;
(ii) is otherwise necessary to provide on an emergent basis without such prior
notice in order to prevent an imminent and substantial endangerment to human
health, provided that in the case of the foregoing clause (ii), Purchaser has
notified Seller of such communication as soon as possible; (iii) Purchaser
engages in with any Governmental Authority after Seller has failed to provide
any response by the date required for such response for any required submission
by the NYSDEC and has further failed to cure any such non-response within thirty
(30) days of Seller's receipt of written notice by Purchaser of such failure
with reference to this Section 3.2(b), unless Seller has contested in good faith
its legal obligation to provide such submission or any action relating thereto;
or (iv) pertains to any Hazardous Materials present at, in, on or under the
Property that have not been excluded from coverage under the environmental
insurance to be obtained by Purchaser (which insurance shall be paid equally by
Seller and Purchaser and shall include each party as a named insured)
("Purchaser's Environmental Insurance"), containing substantially the same terms
and conditions as referenced in the quote attached hereto as Exhibit K-2.
Seller's duty to indemnify, defend and/or hold any of Indemnitees harmless in
this Section 3.2(b) shall expire as of: (A) in the case of any Environmental
Liabilities for which Seller becomes responsible under the ACO, the issuance by
the New York Department of Environmental Conservation ("NYSDEC") of either: (x)
a "Certificate of Completion", or equivalent documentation from the NYSDEC,
demonstrating that all required remediation activities have been completed to
the satisfaction of the NYSDEC (not including any required long-term monitoring

                                      -10-
<PAGE>

which is provided for below in Section 3.2(b)); or (y) a "Certificate of
Construction Completion," if Seller has provided, in conjunction with such
certificate, a third-party liability transfer contract reasonably satisfactory
to Purchaser; or (B) in the case of any Environmental Liabilities for which
Seller otherwise becomes responsible, five (5) years from the date of Closing,
except that such indemnification shall continue for any Environmental
Liabilities discovered within 5 years of the date of closing until a Certificate
of Completion, Certificate of Construction Completion or a Notice of No Further
Action is issued by a Governmental Authority. Notwithstanding any expiration of
the indemnity as set forth above in the foregoing sentence, upon the issuance of
a Certificate of Completion or a Certificate of Construction Completion to
Seller whether under subsection (A) or (B), Seller's indemnity obligation under
this Section 3.2(b) shall continue with respect to any claims and liabilities of
any nature, including those asserted by any third parties, arising from Seller's
obligations under the ACO or other such requirement, if any, to perform ongoing
operations and maintenance activities and/or monitoring with respect to soil,
soil gas and/or groundwater at, on, in, under, or emanating from the Property.

            (c) Notwithstanding anything in the foregoing subsection 3.2(b) to
the contrary, Seller shall have no duty to indemnify, defend and/or hold any of
Indemnitees harmless under Section 3.2(b) for any Environmental Liabilities
against Seller hereunder if insurance coverage for such Environmental
Liabilities is, or is reasonably expected to be, provided for under any of the
insurance policies held by Seller or Purchaser, more particularly referred to as
Kemper Indemnity Insurance Company Policy No. 4YY-002213-00 and American
International Specialty Lines Insurance Company Policy No. PLS 2026574, and the
insurance policy that Seller is required to obtain hereunder containing
substantially the same coverage as described in the quote attached hereto as
Exhibit K-2 (collectively, the "Environmental Insurance"), if and for so long as
Purchaser and/or Seller are either "named insured," "first loss payee" and/or
"additional insured" under said Environmental Insurance until Purchaser and/or
Seller, whichever is first insured, as the case may be, have reasonably
exhausted efforts to recover under said insurance for such Environmental
Liabilities, PROVIDED, HOWEVER, that Seller shall in any event indemnify, defend
and/or hold any of Indemnitees harmless as provided under Section 3.2(b) above
if and when the limits of coverage provided under the Environmental Insurance
have been exhausted. The terms "reasonably exhausted efforts to recover under
said insurance" in the immediately foregoing sentence shall mean that Seller
and/or Purchaser as applicable have diligently provided notice of a claim for
coverage of said Environmental Liabilities to the carrier under the
Environmental Insurance within thirty (30) days of such claim arising, and has
pursued coverage for a period of one hundred eighty (180) days from the date the
environmental claim arose. At the close of the 180-day period from the date the
environmental claim arose as referenced in the foregoing sentence, if no carrier
has agreed to provide coverage for any claimed Environmental Liabilities,
whether or not subject to a reservation of rights, the indemnification
obligations of the Seller as set forth in Section 3.2(b) herein shall be in full
force and effect. Seller agrees that the statute of limitations applicable to
any claim of Purchaser shall be tolled during any period in which Purchaser
and/or Seller are seeking coverage under the Environmental Insurance. Further,
notwithstanding anything in the foregoing subsection 3.2(b) to the contrary, but
except as otherwise provided in the immediately following sentence for any
Purchaser Investigation (as defined below), Seller shall have no duty to
indemnify, defend and/or hold any of the Indemnitees harmless under Section
3.2(b) for any claims or liabilities arising in whole or in part from, but
Purchaser shall instead indemnify, defend and hold harmless Seller for: (i) any

                                      -11-
<PAGE>

Environmental Liabilities arising from any negligence or exacerbation of any
existing environmental condition involving Hazardous Materials by Purchaser or
any Purchaser's tenants, contractors, agents, or invitees; and/or (ii) any
invasive investigation undertaken by Purchaser or any of its tenants,
contractors, agents or invitees at or near the Property. For purposes of this
Agreement, "invasive investigation" shall mean the installation of monitoring
wells for soil and/or groundwater sampling and shall not include any activity
associated with routine maintenance of or visual inspection at the building or
buildings. Notwithstanding anything in the immediately foregoing sentence to the
contrary, Purchaser may perform an invasive investigation ("Purchaser's
Investigation") at or near the Property and shall be entitled to indemnification
from Seller pursuant to subsection 3.2(b) above for any Environmental
Liabilities relating to the discovery of any Hazardous Materials resulting from
such investigation and whose presence at or near the Property existed prior to
the date of Closing or whose release was otherwise caused by Seller if all of
the following conditions are true at the time that Purchaser seeks such
indemnification from Seller: (A) Purchaser has provided reasonable written
advance notice to Seller of its intention to perform such investigation and
Seller has not elected to perform the investigation itself at Seller's cost; (B)
Purchaser has demonstrated to Seller's reasonable satisfaction that the
investigation is necessary in order to permit Purchaser to perform property
maintenance (including landscaping), a building renovation or extension of the
building, which maintenance, renovation or extension Purchaser has demonstrated
to Seller's reasonable satisfaction is likely to be performed; (C) a written
workplan (the "Purchaser's Investigation Workplan") outlining the scope of such
investigation has been approved by Seller, which approval shall not be
unreasonably withheld or delayed; (D) the scope of the investigation as set
forth in the Purchaser's Investigation Workplan is strictly limited to the scope
of the property maintenance, building renovation or extension; and (E) the
investigation was performed in strict compliance with the Purchaser's
Investigation Workplan.

            (d) Purchaser shall have the right, but not the obligation, to
assume control of the ACO Environmental Work, at Seller's expense if the
following conditions have been satisfied: (i) Seller has failed to provide any
response by the date required for such response for any submission required by
the NYSDEC and has further failed to cure any such non-response within the later
of (A) sixty (60) days of Seller's receipt of written notice by Purchaser of
such failure with reference to this Section 3.2(d), or (B) such longer period as
may be reasonably necessary in order to cure; (ii) Seller's failure to so
respond and cure concerns a matter of a material nature and reasonably would be
likely to result in an administrative or judicial proceeding initiated by the
NYSDEC against Seller seeking to enforce Seller's obligations under the ACO; and
(iii) Seller has not at any time during or prior to the preceding 60-day period
contested in good faith its legal obligation to provide such submission or any
action relating thereto. Notwithstanding anything in the foregoing sentence to
the contrary, in the event that Seller has contested in good faith its legal
obligation to provide the foregoing submission or any action relating thereto,
Purchaser shall be entitled to assume control of the ACO Work at Seller's
expense at such time that Seller's contest of its obligation to do so has been
finally and conclusively determined by a court of competent jurisdiction (or by
an administrative law judge if Seller has no right of judicial redress) against
Seller and Seller has exhausted all rights of appeal therefrom, provided that
all of the other foregoing conditions remain satisfied. Notwithstanding the
foregoing, under no circumstances shall Seller have any responsibility under
this Section 3.2(d) for: (i) any measures in excess of those strictly necessary
to comply with Environmental Laws; (ii) repair, replacement or upgrade of
equipment, or building, material, product or equipment decommissioning,
decontamination or disposal; or (iii) internal costs and overhead of the
Purchaser, including wages, salaries, or any other form of employee
compensation.

                                      -12-
<PAGE>

            (e) Notwithstanding anything in this Section 3.2 to the contrary, if
after the eighteen month anniversary date of the Closing Seller has not obtained
a Record of Decision ("ROD") signed by the NYSDEC for the ACO Environmental
Work: (i) Seller agrees that Purchaser and Seller shall jointly work together to
obtain the ROD; (ii) Seller and Purchaser shall consult with one another, and
shall cause each other's consultants to participate in such consultation,
regarding the nature or scope of the ACO Environmental Work (the "Purchaser
Consultation Matters"); (iii) with respect to any scheduled telephonic
conference call with Seller (or its consultants) and the NYSDEC involving the
Purchaser Consultation Matters, Seller shall include Purchaser on such
conference call, provided that Seller at all times shall have the exclusive
right to convey the mutually agreed upon positions of Seller and Purchaser to
the NYSDEC regarding any matters pertaining to the ACO Environmental Work; (iv)
with respect to any unscheduled telephonic call with Seller (or its consultants)
and the NYSDEC involving the Purchaser Consultation Matters, Seller agrees to
promptly inform Purchaser of all such communications by follow-up telephonic
discussion or e-mail correspondence; (v) Purchaser and Seller shall jointly have
the right to comment on any Deliverable prior to its submission to the NYSDEC;
and (vi) Seller shall not unreasonably refuse to make modifications to any
Deliverable in order to address Purchaser's comments. For purposes of this
Section 3.2(e), Purchaser and Seller agree that under no circumstances shall
Seller be required to perform any action beyond that which is required by law.

            (f) In the event that Seller and Purchaser are unable to agree on:
(i) whether the conditions set forth in subsection 3.2(d) above for triggering
Purchaser's right to assume control of the ACO Environmental Work have been
satisfied; or (ii) whether, or to what extent, any Deliverable should be
modified in accordance with subsection 3.2(e) above, then in either such case,
Seller and Purchaser agree to submit the matter for arbitration with an
independent third party with expertise in the applicable matters in dispute (the
"Arbitrator"), which Arbitrator shall be mutually agreeable to both Seller and
Purchaser, and further agree that the decision of such Arbitrator shall be
conclusive in all respects as to such matter. Seller and Purchaser also agree
that in the event of an arbitration pursuant to the foregoing sentence, they
will each pay one-half of the arbitrator's fee, but shall otherwise be
responsible for their own counsel and/or expert witness fees.

            (g) At Closing, Seller shall place the sum of $500,000 into an
escrow account, pursuant to an escrow agreement that Seller and Purchaser shall
jointly agree on, with Escrow Agent. Seller and Purchaser further agree that
such escrow agreement shall include, at a minimum: (i) a full release and
indemnity of Escrow Agent from and against any claims of any nature whatsoever
stemming from its role as Escrow Agent; (ii) a right of Seller to draw down
money from the escrow in order to pay for any costs incurred in connection with
the investigation or remediation of the ACO Environmental Work or the Non-ACO
Environmental Work and/or any interactions with any Governmental Authority in
connection with the same, except for attorneys fees; (iii) a termination
provision allowing Seller to receive all remaining amounts in the escrow upon
deliver to Purchaser of: (A) an executed contract with an environmental
engineering firm for the performance of the ACO Environmental Work as provided

                                      -13-
<PAGE>

under an NYSDEC-signed ROD; or (B) a prepaid guaranteed remediation contract or
third-party risk transfer agreement with an environmental engineering firm
providing for the completion of the ACO Environmental Work. As of the date of
the termination of the escrow agreement, Seller shall provide Purchaser with a
letter indicating that Seller has not filed for bankruptcy.

         3.3 TITLE AND SURVEY. Within two (2) Business Days after the Effective
Date, Purchaser shall order from the Title Company an update of preliminary
title commitment No. 07-7406-17848-Q with respect to the Property issued in
favor of Purchaser (the "Title Commitment"). Purchaser shall promptly deliver
copies of the Title Commitment to Seller. At any time following the Effective
Date, Purchaser may arrange, at its expense, for the preparation of one or more
updates of the Existing Survey (each and together, the "Survey"). Purchaser
shall promptly deliver copies of any such Survey to Seller. Purchaser shall have
until twenty (20) business days from the date of Purchaser's receipt of the
Title Commitment, to give written notice (the "Title Notice") to Seller of such
objections as Purchaser may have to any exceptions to title disclosed in the
Title Commitment. Seller shall have the right, but not the obligation (except as
to Monetary Objections), to attempt to remove, satisfy or otherwise cure any
exceptions to title to which the Purchaser so objects. Within ten (10) Business
Days after receipt of Purchaser's Title Notice, Seller shall give written notice
to Purchaser informing the Purchaser of Seller's election with respect to such
objections. If Seller fails to give written notice of election within such ten
(10) Business Day period, Seller shall be deemed to have elected not to attempt
to cure the objections (other than Monetary Objections). If Seller elects to
attempt to cure any objections, Seller shall be entitled to one or more
reasonable adjournments of the Closing (not to exceed sixty (60) days in the
aggregate) to attempt such cure, but, except for Monetary Objections, Seller
shall not be obligated to expend any sums, commence any suits or take any other
action to effect such cure. Except as to Monetary Objections, if Seller elects,
or is deemed to have elected, not to cure any exceptions to title to which
Purchaser has objected or if, after electing to attempt to cure, Seller
determines that it is unwilling or unable to remove, satisfy or otherwise cure
any such exceptions, Purchaser's sole remedy hereunder in such event shall be
either (i) to accept title to the Property subject to such exceptions as if
Purchaser had not objected thereto and without reduction of the Purchase Price,
or (ii) to terminate this Agreement within three (3) Business Days after receipt
of written notice from Seller either of Seller's election not to attempt to cure
any objection or of Seller's determination, having previously elected to attempt
to cure, that Seller is unable or unwilling to do so, whereupon Escrow Agent
shall return the Earnest Money to Purchaser and the parties shall have no
further obligations pursuant to this Agreement except those that expressly
survive a termination of this Agreement. Notwithstanding anything to the
contrary contained elsewhere in this Agreement, Seller shall be obligated to
cure or satisfy all Monetary Objections at or prior to Closing, and Seller may
use the proceeds of the Purchase Price at Closing for such purpose. From and
after the date hereof, Seller shall not cause the creation of any Lien (a "New
Lien") to encumber title to the Property, without Purchaser's written consent
thereto, which consent may be withheld in Purchaser's sole discretion.
Notwithstanding any other provision of this Agreement to the contrary, Seller
shall be obligated to remove or discharge of record, prior to Closing, any New
Lien caused by Seller which has not been consented to in writing by Purchaser.
In addition, notwithstanding anything to the contrary contained in this
Agreement, if any New Liens (whether caused by Seller or a third party) appear
on any update to the Title Commitment, Purchaser shall have the right to object
to same within twenty (20) Business Days of receipt of such update, and such
objections shall be considered objections to title for all purposes of this
Agreement and the provisions of this SECTION 3.3 shall apply to such objections.

                                      -14-
<PAGE>

         3.4 SERVICE CONTRACTS. Within ten (10) Business Days of Purchaser's
receipt of complete copies of the Service Contracts (but no earlier than ten
(10) Business Days after the Effective Date, Purchaser will designate in a
written notice to Seller which Service Contracts Purchaser will assume and which
Service Contracts will be terminated by Seller at Closing; PROVIDED, HOWEVER,
that Seller shall not be obligated to terminate, and Purchaser shall assume
Seller's obligations arising from and after Closing under, all Service Contracts
which cannot be terminated by Seller upon thirty (30) days (or less) prior
notice or which can be terminated by Seller only upon payment of a fee, premium,
penalty or other form of early termination compensation. Purchaser will assume
the obligations arising from and after the Closing Date under those Service
Contracts which Purchaser has designated will not be terminated. Seller, without
cost to Purchaser, shall terminate at Closing all Service Contracts that are not
so assumed, to the extent any relates to the Property. If Purchaser fails to
timely notify Seller in writing of any Service Contracts that Purchaser does not
desire to assume at Closing, Purchaser shall be deemed to have elected to assume
all such Service Contracts and to have waived its right to require Seller to
terminate such Service Contracts.

         3.5 CONFIDENTIALITY. All information acquired by Purchaser or any of
its designated representatives (including by way of example, but not in
limitation, the officers, directors, shareholders and employees of Purchaser,
and Purchaser's engineers, consultants, counsel and potential lenders, and the
officers, directors, shareholders and employees of each of them) with respect to
the Property, whether delivered or otherwise made available by Seller or any
representatives of Seller or obtained by Purchaser as a result of its inspection
and investigation of the Property, examination of the books, records and files
of Seller in respect of the Property, or otherwise (collectively, the "Due
Diligence Material") shall be used solely for the purpose of determining whether
the Property is suitable for Purchaser's acquisition and ownership thereof and
for no other purpose whatsoever. Prior to Closing, the terms and conditions
which are contained in this Agreement and all Due Diligence Material which is
not (i) published as public knowledge, (ii) generally available in the public
domain or (iii) was known to Purchaser through a source other than the Due
Diligence Material shall be kept in strict confidence by Purchaser and shall not
be disclosed to any individual or entity other than to those representatives of
Purchaser and Purchaser's prospective and actual counsel, accountants,
professionals, consultants and lenders, who need to know the information for the
purpose of assisting Purchaser in evaluating the Property for Purchaser's
potential acquisition thereof; PROVIDED, HOWEVER, that Purchaser shall have the
right to disclose any such information if required by applicable law or as may
be necessary in connection with any court action or proceeding with respect to
this Agreement. Purchaser shall and hereby agrees to indemnify and hold Seller
harmless from and against any and all loss, liability, cost, damage or expense
that Seller may suffer or incur (including, without limitation, reasonable
attorneys' fees actually incurred) as a result of the unpermitted disclosure by
Purchaser or any of its prospective and actual counsel, accountants,
professionals, consultants and lenders of any of the Due Diligence Material to
any individual or entity other than a representative of Purchaser and
Purchaser's prospective and actual counsel, accountants, professionals,
consultants and lenders and/or the use of any Due Diligence Material for any
purpose other than as herein contemplated and permitted. The foregoing indemnity
shall not extend to disclosure of any Due Diligence Material (i) as may be

                                      -15-
<PAGE>

required by applicable law, (ii) as may be necessary or advisable in connection
with any court action or proceeding with respect to this Agreement, (iii) that
is or becomes (x) published as public knowledge, or (y) generally available in
the public domain other than by virtue of a breach of Purchaser's covenant under
this SECTION 3.5 or (iv) that was known to Purchaser through a source other than
the Due Diligence Material. If Purchaser or Seller elect to terminate this
Agreement pursuant to any provision hereof permitting such termination, or if
the Closing contemplated hereunder fails to occur for any reason, Purchaser
will, at Seller's option, promptly either destroy or return to Seller all Due
Diligence Material in the possession of Purchaser and any of its
representatives, and destroy all copies, notes or abstracts or extracts thereof,
as well as all copies of any analyses, compilations, studies or other documents
prepared by Purchaser or for its use (whether in written or electronic form)
containing or reflecting any Due Diligence Material. In the event of a breach or
threatened breach by Purchaser or any of its representatives of this SECTION
3.5, Seller shall be entitled, in addition to other available remedies, to an
injunction restraining Purchaser or its representatives from disclosing, in
whole or in part, any of the Due Diligence Material and any of the terms and
conditions of this Agreement. Nothing contained herein shall be construed as
prohibiting or limiting Seller from pursuing any other available remedy, in law
or in equity, for such breach or threatened breach. The provisions of this
Section shall survive any termination of this Agreement.

           ARTICLE 4 REPRESENTATIONS, WARRANTIES AND OTHER AGREEMENTS

         4.1 REPRESENTATIONS AND WARRANTIES OF SELLER. Seller hereby makes the
following representations and warranties to Purchaser:

            (a) Organization, Authorization and Consents.

                  (i) Seller has the right, power and authority to enter into
this Agreement and to sell the Property in accordance with the terms and
provisions of this Agreement, to engage in the transaction contemplated in this
Agreement and to perform and observe all of the terms and provisions hereof.

                  (ii) Seller is a duly organized and validly existing limited
liability company under the laws of the State of Delaware.

            (b) Action of Seller, Etc. Seller has taken all necessary action to
authorize the execution, delivery and performance of this Agreement, and upon
the execution and delivery of any document to be delivered by Seller on or prior
to the Closing, this Agreement and such document shall constitute the valid and
binding obligation and agreement of Seller, enforceable against Seller in
accordance with its terms, except as enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws of general
application affecting the rights and remedies of creditors.

            (c) No Violations of Agreements. Neither the execution, delivery or
performance of this Agreement by Seller, nor compliance with the terms and
provisions hereof, will result in any breach of the terms, conditions or
provisions of, or conflict with or constitute a default under, or result in the
creation of any lien, charge or encumbrance upon the Property or any portion
thereof pursuant to the terms of any indenture, deed to secure debt, mortgage,
deed of trust, note, evidence of indebtedness or any other agreement or
instrument by which Seller or the Property is bound.

                                      -16-
<PAGE>

            (d) Litigation. Except as disclosed on Exhibit "I" attached hereto,
Seller has not received written notice of any pending or threatened suit, action
or proceeding, which (i) if determined adversely to Seller, materially and
adversely affects the use or value of the Property, or (ii) questions the
validity of this Agreement or any action taken or to be taken pursuant hereto,
or (iii) involves condemnation or eminent domain proceedings involving the
Property or any portion thereof.

            (e) Existing Leases. Seller represents that all rent due from
tenants of the Building is not in arrears on the date hereof. Other than the
Leases listed on Exhibit "G" attached hereto, Seller has not entered into any
contract or agreement with respect to the occupancy of the Property or any
portion or portions thereof which will be binding on Purchaser or the Property
after the Closing. The copy of the Leases heretofore delivered or made available
by Seller to Purchaser are a true, correct and complete copies thereof, and the
Leases have not been amended except as evidenced by amendments similarly
delivered and listed on Exhibit "G" attached hereto and constitute the entire
agreement between Seller and the tenant thereunder. To Seller's knowledge,
except as set forth in Exhibit "I" attached hereto, Seller has not given or
received any written notice of any party's default or failure to comply with the
terms and provisions of the Leases which remains uncured. Seller is the landlord
under each of the leases and has not assigned, mortgaged, pledged, sublet,
hypothecated or otherwise encumbered any of its rights or interests under any of
the leases in a manner which will survive the Closing. The security deposits
delivered by each tenant under Leases are as set forth in Exhibit "G". No tenant
has paid any rents more than one (1) month in advance. Except as set forth in
Exhibit "G", no tenant is entitled to any free rent, abatement of rent or
similar concession. Anything to the contrary contained in this sub-section (e)
notwithstanding, with regard to the License Agreement and Permit to Enter Upon
Premises, each dated June 26, 2003, between Seller and The Long Island Rail Road
Company listed on Exhibit G attached hereto, Seller is not landlord but rather
licensee, and Seller shall continue to be licensee thereunder, and said
instruments shall not be assigned to Purchaser.

            (f) Leasing Commissions. There are no lease brokerage agreements,
leasing commission agreements or other agreements providing for payments of any
amounts for leasing activities or procuring tenants with respect to the Property
or any portion or portions thereof other than as disclosed in Exhibit "C"
attached hereto (the "Commission Agreements"), and all leasing commissions and
brokerage fees accrued or due and payable under the Commission Agreements with
respect to the Property as of the date hereof and at the Closing have been or
shall be paid in full. Except with respect to the Commission Agreements, there
are no leasing commissions or brokerage fees that will be payable after the
Closing in connection with Leases in effect as of the date hereof.
Notwithstanding anything to the contrary contained herein, Purchaser shall be
responsible for the payment of all leasing commissions payable for (a) any new
leases entered into after the Effective Date that have been approved (or deemed
approved) by Purchaser, and (b) the renewal, expansion or extension of the
Leases existing as of the Effective Date and exercised or effected after the
Effective Date. The terms of the immediately preceding sentence shall survive
Closing.

                                      -17-
<PAGE>

            (g) Management Agreement. There is no agreement currently in effect
relating to the management of the Property by any third party management
company.

            (h) Taxes and Assessments. Except as may be set forth on EXHIBIT "L"
attached hereto and made a part hereof, Seller has not filed, and has not
retained anyone to file, notices of protests against, or to commence action to
review, real property tax assessments against the Property. Seller shall retain
sole and absolute interest in proceedings against the City New York an its
agencies, including, but not limited to, the New York City Department of
Finance, New York City Tax Commission and New York City Law Department, which
relate to the protest or appeal of the assessment of real property for the years
set forth on EXHIBIT "L." As such, Seller shall have sole interest in and sole
authority to settle, pursue or initiate any proceedings for tax years listed on
EXHIBIT "L." Seller's authority stated above in this clause (h) shall survive
Closing. Notwithstanding the foregoing, any refund or savings in respect to such
proceeding shall belong to Seller only after deduction of all sums payable to
tenants under the Leases in respect thereof; provided that if any refund or
savings is in the form of a future tax credit, Purchaser shall deliver the
aggregate amount of such credit to Seller in cash, and Seller shall deliver any
applicable sums payable to tenants under the Leases in respect thereof.

            (i) Compliance with Laws. EXHIBIT "H" attached hereto sets forth
true and complete copies of the most recent departmental searches obtained by
Seller. Purchaser shall accept title to the Property subject to all violations
of laws, orders, rules and regulations affecting the Property as of the Closing
Date. Anything to the contrary contained in the immediately preceding sentence
notwithstanding, for any violation issued against the Property before or after
the date of this Agreement, Seller shall be responsible to cure the subject
condition; provided that Seller shall not be responsible to cure any violations
which were caused by Purchaser or its tenants after the closing date of this
Agreement. To the extent Seller is responsible to cure violations as more
particularly provided for in the immediately preceding sentence, Seller shall
act promptly, it being understood that such curing of violations may not be
accomplished prior to Closing and to the extent such violations are not cured
prior to Closing Seller's obligation to act promptly to cure such violations
shall survive Closing. Purchaser agrees to cooperate with Seller at no
out-of-pocket cost to Purchaser in connection with Seller's obligations, if any,
set forth in this clause (i) which agreement to cooperate shall survive Closing.

            (j) Other Agreements. To Seller's knowledge, except for the Leases,
the Service Contracts, the Commission Agreements and the Permitted Exceptions,
there are no leases, management agreements, brokerage agreements, leasing
agreements or other agreements or instruments in force or effect that grant to
any person or any entity (other than Seller) any right, title, interest or
benefit in and to all or any part of the Property or any rights relating to the
use, operation, management, maintenance or repair of all or any part of the
Property which will survive the Closing or be binding upon Purchaser other than
those which Purchaser has agreed in writing to assume (or is deemed to have
agreed to assume) or which are terminable upon thirty (30) days notice without
payment of premium or penalty. Seller has delivered true, correct and complete
copies of the Service Contracts and each Service Contract is in full force and
effect. To the best of Seller's knowledge, neither Seller nor any other party to
any Service Contract is in default in any material respect under any of the
Service Contracts.

                                      -18-
<PAGE>

            (k) Seller Not a Foreign Person. Seller is not a "foreign person"
which would subject Purchaser to the withholding tax provisions of Section 1445
of the Internal Revenue Code of 1986, as amended.

            (l) Intentionally Omitted.

            (m) Environmental. To Seller's knowledge, or except as may be set
forth in the Existing Environmental Reports or other written Due Diligence
Material, (i) the Property complies in all material respects with Environmental
Laws; (ii) neither the Seller nor any other person has caused any material
Release of any Hazardous Material at the Property; (iii) Seller has not received
any written notification from any governmental authority alleging a material
violation of any Environmental Law by Seller with respect to the Property.

            (n) No Bankruptcy. Seller has not made a general assignment for the
benefit of creditors, filed any voluntary petition in bankruptcy or suffered the
filing of an involuntary petition by Seller's creditors, suffered the
appointment of a receiver to take possession of any of Seller's assets, suffered
the attachment or other judicial seizure of any of Seller's assets, admitted in
writing its inability to pay its debts as they come due or made an offer of
settlement, extension or composition to its creditors generally.

            (o) Options. No person or entity (other than Purchaser) has any
option or other right to purchase or ground lease all or any portion of the
Property.

            (p) Personalty. Seller is the owner of the Personal Property and the
Intangible Property and the same shall be transferred to Purchaser free and
clear of all liens and encumbrances.

            (q) OFAC. (i) Neither Seller, nor any of Seller's owners, or any
officers, directors or employees, is named as a "Specially Designated National
and Blocked Person" as designated by the United States Department of the
Treasury's Office of foreign Assets Control or as a person, group, entity or
nation designated in Presidential Executive Order 13224 as a person who commits,
threatens to commit, or supports terrorism; (ii) Seller is not owned or
controlled, directly or indirectly, by the government of any country that is
subject to a United States Embargo; (iii) Seller is not acting, directly or
indirectly, for or on behalf of any person, group, entity or nation named by the
United States treasury Department as a "Specially Designated National and
Blocked Person", or for or on behalf of any person, group, entity or nation
designated in Presidential Executive Order 13224 as a person who commits,
threatens to commit, or supports terrorism; and (iv) Seller is not a person who
commits, threatens to commit, or supports terrorism; and (iv) Seller is not
engaged in the transaction contemplated hereby directly or indirectly on behalf
of, any such person, group, entity or nation.

                  Each of the representations and warranties is true and
accurate as of the date of execution of this Agreement by Seller, and will be
true and accurate as of the Closing Date, and will survive the Closing for a
period of one hundred eighty (180) days, PROVIDED, HOWEVER, that nothing in the
foregoing clause shall be construed so as to in any way limit the term of
Seller's indemnification obligation under Section 3.2 above. Except as otherwise
expressly provided in this Agreement or in any documents to be executed and
delivered by Seller to Purchaser at the Closing, Seller has not made, and

                                      -19-
<PAGE>

Purchaser has not relied on, any information, promise, representation or
warranty, express or implied, regarding the Property, whether made by Seller, on
behalf of Seller, or otherwise, including, without limitation, the physical
condition of the Property, the financial condition of the tenants under the
Leases, title to or the boundaries of the Property, pest control matters, soil
conditions, the presence, existence or absence of hazardous wastes, toxic
substances or other environmental matters, compliance with building, health,
safety, land use and zoning laws, regulations and orders, structural and other
engineering characteristics, traffic patterns, market data, economic conditions
or projections, past or future economic performance of the tenants or the
Property, and any other information pertaining to the Property or the market and
physical environments in which the Property is located. Purchaser acknowledges
(i) that Purchaser has entered into this Agreement with the intention of making
and relying upon its own investigation or that of Purchaser's own consultants
and representatives with respect to the physical, environmental, economic and
legal condition of the Property and (ii) that Purchaser is not relying upon any
statements, representations or warranties of any kind, other than those
specifically set forth in this Agreement or in any document to be executed and
delivered by Seller to Purchaser at the Closing, made (or purported to be made)
by Seller or anyone acting or claiming to act on behalf of Seller. Purchaser
will inspect the Property and become fully familiar with the physical condition
thereof and, subject to the terms and conditions of this Agreement and the
Closing Documents, shall purchase the Property in its "as is, where is"
condition, "with all faults," on the Closing Date. The provisions of this
paragraph shall survive the Closing.

                  If prior to the Closing, Purchaser obtains knowledge in
writing of any inaccuracy or breach of any representation, warranty or covenant
of Seller contained in this Agreement (a "Purchaser Waived Breach") and
nonetheless proceeds with and consummates the Closing, then Purchaser and any
Purchaser-Related Entities shall be deemed to have waived and forever renounced
any right to assert a claim for indemnification under this ARTICLE 4 for, or any
other claim or cause of action under this Agreement, at law or in equity on
account of any such Purchaser Waived Breach.

         4.2 KNOWLEDGE DEFINED. All references in this Agreement to the
"knowledge of Seller" or "to Seller's knowledge" shall refer only to the actual
knowledge of Robert H. Martin, Carmine J. Broccole and Iain Campbell, who have
been actively involved in the management of Seller's business in respect of the
Property. The term "knowledge of Seller" or "to Seller's knowledge" shall not be
construed, by imputation or otherwise, to refer to the knowledge of Seller, or
any affiliate of Seller, or to any other partner, beneficial owner, officer,
director, agent, manager, representative or employee of Seller, or any of their
respective affiliates, or to impose on either of the individuals named above any
duty to investigate the matter to which such actual knowledge, or the absence
thereof, pertains. There shall be no personal liability on the part of the
individuals named above arising out of any representations or warranties made
herein or otherwise.

         4.3 COVENANTS AND AGREEMENTS OF SELLER.

            (a) Leasing Arrangements. During the pendency of this Agreement,
Seller will not enter into any lease affecting the Property, or modify or amend
in any respect, or terminate, the existing Leases without Purchaser's prior
written consent in each instance, which consent may be withheld in Purchaser's

                                      -20-
<PAGE>

sole discretion. Each request shall be accompanied by a copy of any proposed
modification or amendment of an existing Lease or of any new lease that Seller
wishes to execute between the Effective Date and the Closing Date, including,
without limitation, a description of any Tenant Inducement Costs and leasing
commissions associated with any proposed renewal or expansion of the existing
Leases or with any such new lease, as well as any additional information
regarding such proposed transaction as Purchaser may reasonably request. At
Closing, Purchaser shall reimburse Seller for any Tenant Inducement Costs or
leasing commissions actually incurred by Seller pursuant to a renewal or
expansion of the existing Leases after the Effective Date or new lease approved
by Purchaser hereunder, and Purchaser shall assume any such new lease and shall
assume the obligations of Seller thereunder, including the obligation to pay any
Tenant Inducement Costs and leasing commissions.

            (b) New Contracts. During the pendency of this Agreement, Seller
will not enter into any contract, or modify, amend, renew or extend any existing
contract, that will be an obligation affecting the Property or any part thereof
subsequent to the Closing without Purchaser's prior written consent in each
instance, which consent shall be in Purchaser's sole discretion.

            (c) Operation of Property. During the pendency of this Agreement,
Seller shall, at Seller's expense, continue to operate the Property in a good
and businesslike fashion consistent with Seller's past practices.

            (d) Insurance. During the pendency of this Agreement, Seller shall,
at Seller's expense, continue to maintain the current insurance policies
covering the Improvements.

            (e) Environmental. Except as to any such requirements which Seller
has contested in good faith, Seller shall diligently comply with all legal
requirements pursuant to the Administrative Consent Order between Seller and the
NYSDEC dated March 30, 1998 (the "ACO") and shall obtain and deliver to
Purchaser such documentation as may be provided by the State of New York and any
of its relevant agencies demonstrating that the requirements of the ACO have
been satisfied (the "ACO Environmental Work"). For purposes of the foregoing
sentence, the terms "diligently comply with all legal requirements" shall be
deemed to include compliance with any deadlines that the NYSDEC shall impose for
the delivery of any remedial plan or investigation report to the NYSDEC, except
to the extent that Seller's failure to so comply was caused by Purchaser, any of
Purchaser's Representatives, or any force majeure event. Seller shall further
perform such remedial actions with regard to any Hazardous Materials that are
present in soils or groundwater at, on, in, under or emanating from the Property
as of the date of Closing, to the extent that Seller becomes legally required to
do so as a result of any claim by any Governmental Authority or third party
against Seller, subject to Seller's right to contest that it is required to do
so pursuant to Environmental Laws (the "Non-ACO Environmental Work"), PROVIDED,
HOWEVER, that Seller shall have no obligation hereunder to perform such remedial
actions with respect to: (i) any Hazardous Materials discovered as a result of
any investigation (other than Purchaser's Investigation to the extent that such
investigation complies with all of the requirements, conditions and limitations
set forth in Section 3.2(c) for Seller's duty to indemnify, defend and hold
harmless Indemnitees for Environmental Liabilities arising from Purchaser's
Investigation) performed by Purchaser or any of Purchaser's tenants,
contractors, agents, or invitees; and/or (ii) any Environmental Liability

                                      -21-
<PAGE>

arising from Purchaser's or any of Purchaser's tenants', contractors', agents',
or invitees' negligence or exacerbation of any Hazardous Materials present at,
on, under or near the Property prior to Closing. (The ACO Environmental Work and
the Non-ACO Environmental Work shall hereinafter be referred to as the
"Environmental Work.") In performing the Environmental Work, Seller shall: (i)
keep Purchaser reasonably apprised of its remedial work activities and shall
provide Purchaser or Purchaser's designated representative with draft copies of
any workplans, reports or schedules ("Deliverables") required by any
Governmental Authority for its review and comment prior to their submission to
any Governmental Authority and any responses to said documents from any
Governmental Authority, PROVIDED, HOWEVER, that in the case of any such
documents required to be submitted to any Governmental Authority, Seller shall
have no obligation to accept any of Purchaser's comments, except as otherwise
provided in Section 3.2(e) hereof, and (ii) take such measures as are necessary
to avoid disruption to the business operations of Purchaser's tenants at the
Property, PROVIDED, HOWEVER, that Seller shall have no obligation to do so to
the extent that the cost of any measures necessary to avoid such disruptions
exceed the then fair market rent for the tenant's space plus any other
reasonable business losses incurred by the tenant for which Purchaser is held
responsible under the terms of the applicable lease; PROVIDED, FURTHER HOWEVER,
that if Seller's performance of Environmental Work is directly responsible for
Purchaser's incurring liability to tenants of the Property for any substantial
disruption of said tenants' businesses, Seller shall reimburse Purchaser for the
actual costs incurred by Purchaser, provided that Seller shall have the right to
defend Purchaser against any related claims by tenants and Purchaser agrees to
cooperate fully with Seller in connection with any such defense. Seller further
agrees that it shall be solely responsible for the payment of, and hereby
covenants to pay as necessary to invoke coverage for any claim covered
thereunder, all deductible amounts pursuant to that insurance policy currently
held by Seller, known more particularly as Kemper Indemnity Insurance Company
Policy No. 4YY-002213-00 and American International Specialty Lines Insurance
Company Policy No. PLS 2026574, and shall further cause the carrier on the
latter policy to name Purchaser as an additional insured on such policy. There
foregoing covenants shall survive the Closing until such time as Seller's
indemnification obligations expire in accordance with Section 3.2(b). Further,
it shall be a precondition that prior to seeking any judicial remedy with
respect to Seller's actual or alleged breach of any of the foregoing covenants
in this Section 4.3(e), Purchaser shall first provide Seller with written notice
of such breach and provide Seller with thirty (30) days in which to cure such
breach. Seller shall further compensate Purchaser for the fair market rental
value of any otherwise leaseable space that is rendered unleaseable due to the
Seller's performance of the Environmental Work, during the period that such
space is so rendered unleaseable.

         4.4 TENANT ESTOPPEL CERTIFICATE. Seller shall endeavor in good faith
(but without obligation to incur any cost or expense) to obtain and deliver to
Purchaser, at least two (2) Business Days prior to Closing, written Tenant
Estoppel Certificates in substantially the form attached hereto as EXHIBIT "K"
signed by the tenants under the Leases; and in no event shall the inability or
failure of Seller to obtain and deliver said Tenant Estoppel Certificates
(Seller having used its good faith efforts as set forth above as to the tenants
under Leases) be a default of Seller hereunder. Seller authorizes Purchaser to
contact tenants in order to obtain Tenant Estoppel Certificates. With respect to
each Tenant from which Seller fails to obtain a Tenant Estoppel Certificate,
Seller shall deliver at least two (2) Business Days prior to Closing, a written
seller estoppel executed by Seller certifying to matters set forth in the form
of Seller Estoppel Certificate attached hereto as EXHIBIT "K." After Seller
delivers any such seller estoppel to Purchaser, Seller shall have the right

                                      -22-
<PAGE>

prior to Closing to substitute the subject Tenant Estoppel Certificate executed
by the subject tenant. Any seller estoppel shall provide that such seller
estoppel shall expire on the first anniversary of said seller estoppel.

         4.5 REPRESENTATIONS AND WARRANTIES OF PURCHASER.

            (a) Organization, Authorization and Consents. Purchaser is a duly
organized and validly existing limited liability company under the laws of the
State of Delaware. Purchaser has the right, power and authority to enter into
this Agreement and to purchase the Property in accordance with the terms and
conditions of this Agreement, to engage in the transactions contemplated in this
Agreement and to perform and observe the terms and provisions hereof.

            (b) Action of Purchaser, Etc. Purchaser has taken all necessary
action to authorize the execution, delivery and performance of this Agreement,
and upon the execution and delivery of any document to be delivered by Purchaser
on or prior to the Closing, this Agreement and such document shall constitute
the valid and binding obligation and agreement of Purchaser, enforceable against
Purchaser in accordance with its terms, except as enforceability may be limited
by bankruptcy, insolvency, reorganization, moratorium or similar laws of general
application affecting the rights and remedies of creditors.

            (c) No Violations of Agreements. Neither the execution, delivery or
performance of this Agreement by Purchaser, nor compliance with the terms and
provisions hereof, will result in any breach of the terms, conditions or
provisions of, or conflict with or constitute a default under the terms of any
indenture, deed to secure debt, mortgage, deed of trust, note, evidence of
indebtedness or any other agreement or instrument by which Purchaser is bound.

            (d) Litigation. To Purchaser's knowledge, Purchaser has received no
written notice that any action or proceeding is pending or threatened, which
questions the validity of this Agreement or any action taken or to be taken
pursuant hereto.

            (e) No Bankruptcy. Purchaser has not made a general assignment for
the benefit of creditors, filed any voluntary petition in bankruptcy or suffered
the filing of an involuntary petition by Purchaser's creditors, suffered the
appointment of a receiver to take possession of any of Purchaser's assets,
suffered the attachment or other judicial seizure of any of Purchaser's assets,
admitted in writing its inability to pay its debts as they come due or made an
offer of settlement, extension or composition to its creditors generally.

            (f) OFAC. (i) Neither Purchaser, nor any of Purchaser's owners, or
any officers, directors or employees, is named as a "Specially Designated
National and Blocked Person" as designated by the United States Department of
the Treasury's Office of Foreign Assets Control or as a person, group, entity or
nation designated in Presidential Executive Order 13224 as a person who commits,
threatens to commit, or supports terrorism; (ii) Purchaser is not owned or
controlled, directly or indirectly, by the government of any country that is
subject to a United States Embargo; (iii) Purchaser is not acting, directly or
indirectly, for or on behalf of any person, group, entity or nation named by the
United States Treasury Department as a "Specially Designated National and
Blocked Person", or for or on behalf of any person, group, entity or nation

                                      -23-
<PAGE>

designated in Presidential Executive Order 13224 as a person who commits,
threatens to commit, or supports terrorism; and (iv) Purchaser is not engaged in
the transaction contemplated hereby directly or indirectly on behalf of, or
facilitating the transaction contemplated hereby directly or indirectly on
behalf of, any such person, group, entity or nation.

         4.6 COVENANT OF PURCHASER TO COMPLY WITH ENVIRONMENTAL REMEDIATION
EASEMENT.

                  Purchaser acknowledges the presence of Hazardous Materials on,
under or in the Property, as disclosed in the documents provided to Purchaser in
the Existing Environmental Reports and Due Diligence Materials, and that Seller
is presently performing the ACO Environmental Work under the supervision of the
New York Department of Environmental Conservation and the New York Department of
Health. Purchaser agrees to cooperate with Seller in all respects concerning its
ongoing performance of the Environmental Work and grants to Seller an easement
for purposes of completing the Environmental Work, as more particularly set
forth in the Environmental Remediation Easement attached hereto as Exhibit K-1,
provided that nothing in this Section 4.6 shall obligate Purchaser to incur any
cost in connection with Seller's performance of the Environmental Work.
Purchaser's covenant in this SECTION 4.6 shall survive Closing.

           ARTICLE 5 CLOSING DELIVERIES, CLOSING COSTS AND PRORATIONS

         5.1 SELLER'S CLOSING DELIVERIES. For and in consideration of, and as a
condition precedent to Purchaser's delivery to Seller of the Purchase Price,
Seller shall obtain or execute and deliver to Purchaser at Closing the following
documents, all of which shall be duly executed, acknowledged and notarized where
required:

            (a) Deed. A Bargain and Sale Deed Without Covenants Against
Grantor's Acts from Seller with respect to the Land and Improvements (the
"Deed"), subject only to the Permitted Exceptions, and executed and acknowledged
by Seller. The legal description of the Land set forth in the Deed shall be
based upon and conform to the legal description attached hereto as Exhibit "A".
If and to the extent that any of the Permitted Exceptions requires the
recitation or incorporation in any deed of any provisions of such Permitted
Exception, the Deed shall conform to such requirements;

            (b) Seller Lease. Two (2) counterparts of a lease agreement (the
"Seller Lease") between Purchaser, as landlord, and Standard Motor Products,
Inc., as tenant, in substantially the form attached hereto as Schedule 5,
executed by Seller;

            (c) Assignment and Assumption of Leases. Two (2) counterparts of an
assignment and assumption of the Leases and, to the extent required elsewhere in
this Agreement, the obligations of Seller under the Commission Agreements in the
form attached hereto as Schedule 1 (the "Assignment and Assumption of Lease"),
executed by Seller;

            (d) Assignment and Assumption of Service Contracts. Two (2)
counterparts of an assignment and assumption of Service Contracts in the form
attached hereto as SCHEDULE 2 (the "Assignment and Assumption of Service
Contracts"), executed by Seller;

                                      -24-
<PAGE>

            (e) Bill of Sale. A bill of sale from Seller for the Personal and
Intangible Property of Seller in the form attached hereto as SCHEDULE 3 (the
"Bill of Sale"), without warranty as to the title or condition of the Personal
and Intangible Property, executed by Seller;

            (f) Seller's Affidavit. An owner's affidavit from Seller in a form
reasonably requested by the Title Company and acceptable to Seller;

            (g) RPT Return. The Real Property Transfer Tax Return pursuant to
Chapter 46, Title II of the New York City Administrative Code (the "RPT
Return"), together with bank or cashiers' checks from Seller, made payable to
the appropriate governmental authority in the required amount(s) (unless Seller
authorizes the Title Company and the Title Company agrees to deduct and pay such
expenses out of monies payable to Seller);

            (h) NYS Tax Affidavit. The New York State Department of Taxation and
Finance Combined Real Estate Transfer Tax Return, Credit Line Mortgage
Certificate and Certification of Exemption from the Payment of Estimated
Personal Income Tax (TP-584) (7/03) and Real Property Transfer Tax Report
(RP-5217NYC) (collectively, the "NYS Tax Affidavit"), or any successor form
thereto required to be filed with respect to the New York State Real Estate
Transfer Tax, together with bank or cashiers' checks from Seller, made payable
to the appropriate governmental authority in the required amount(s) (unless
Seller authorizes the Title Company and the Title Company agrees to deduct and
pay such expenses out of monies payable to Seller);

            (i) FIRPTA Certificate. A FIRPTA Certificate from Seller in the form
attached hereto as SCHEDULE 4, or in such other form as applicable laws may
require;

            (j) Evidence of Authority. Such documentation as may reasonably be
required by the Title Company to establish that this Agreement, the transactions
contemplated herein, and the execution and delivery of the documents required
hereunder, are duly authorized, executed and delivered on behalf of Seller;

            (k) Settlement Statement. A settlement statement setting forth the
amounts paid by or on behalf of and/or credited to each of Purchaser and Seller
pursuant to this Agreement;

            (l) Surveys and Plans. Such surveys, site plans, plans and
specifications, and other matters relating to the Property as are in the
possession or control of Seller to the extent not theretofore delivered to
Purchaser;

            (m) Certificates of Occupancy. To the extent the same are in the
possession or control of Seller, original or photocopies of certificates of
occupancy for all space within the Improvements located on the Property;

            (n) Leases and Contracts. To the extent the same is in the
possession or control of Seller, original executed counterparts of the Leases
and the Service Contracts;

            (o) Tenant Estoppel Certificate. Tenant Estoppel Certificates or
seller estoppel certificates, as applicable, as required by Section 4.4;

                                      -25-
<PAGE>

            (p) Notice of Sale to Tenant. Seller will join with Purchaser in
executing a notice, in form and content reasonably satisfactory to Seller and
Purchaser (the "Tenant Notice of Sale"), which Purchaser shall send to the
tenants under the Leases informing the tenants of the sale of the Property and
of the assignment to and assumption by Purchaser of Seller's interest in the
Leases and directing that all rent and other sums payable for periods after the
Closing under the Leases shall be paid as set forth in said notice;

            (q) Notices of Sale to Service Contractors and Leasing Agents.
Seller will join with Purchaser in executing notices, in form and content
reasonably satisfactory to Seller and Purchaser (the "Other Notices of Sale"),
which Purchaser shall send to each service provider and leasing agent under the
Service Contracts assumed by Purchaser at Closing informing such service
provider of the sale of the Property and of the assignment to and assumption by
Purchaser of Seller's obligations under the Service Contracts arising after the
Closing Date and directing that all future statements or invoices for services
under such Service Contracts for periods after the Closing be directed to Seller
or Purchaser as set forth in said notices;

            (r) Keys and Records. All of the keys to any door or lock on the
Property and the original tenant files, plans and specifications of the Property
excluding keys for space continuing to be occupied by Seller, and other
non-confidential books and records relating to the Property in the possession of
Seller;

            (s) Seller Certificate. A certificate of Seller confirming the
continued accuracy of the representations and warranties made by Seller in this
Agreement or updating and correcting any changes to such representations and
warranties, it being agreed that any update to or change of the representations
and warranties will not be a Seller default if any such representations and
warranties (which were true when made) have become untrue due to any reason
other than an act or omission to act of Seller which violates the terms of this
Agreement which certificate shall survive the Closing for one hundred eighty
(180) days; and

            (t) Other Documents. Such other documents as shall be reasonably
requested by the Title Company to effectuate the purposes and intent of this
Agreement, including as may be required by the Title Company in connection with
the issuance to Purchaser of an owner's policy, provided that such affidavits do
not impose on Seller any material liabilities not assumed by it under this
Agreement (it being agreed that an affidavit in customary form which is required
to limit the standard pre-printed exception for tenants in possession to their
rights as tenants only under written leases and to eliminate the standard
exception for inchoate mechanics' liens for work performed by Seller at Seller's
expense will not be deemed to impose material liabilities on Seller).

            (u) Environmental Insurance. A fully executed insurance policy
containing substantially the same terms and conditions as described in the quote
provided in Exhibit K-2 attached hereto.

         5.2 PURCHASER'S CLOSING DELIVERIES. Purchaser shall obtain or execute
and deliver to Seller at Closing the following documents, all of which shall be
duly executed, acknowledged and notarized where required:

                                      -26-
<PAGE>

            (a) Assignment and Assumption of Lease. Two (2) counterparts of the
Assignment and Assumption of Lease, executed by Purchaser;

            (b) Assignment and Assumption of Service Contracts. Two (2)
counterparts of the Assignment and Assumption of Service Contracts, executed by
Purchaser;

            (c) Notice of Sale to Tenant. The Tenant Notice of Sale, executed by
Purchaser, as contemplated in SECTION 5.1(P) hereof;

            (d) Notices of Sale to Service Contractors and Leasing Agents. The
Other Notices of Sale to service providers as contemplated in SECTION 5.1(Q)
hereof;

            (e) Settlement Statement A settlement statement setting forth the
amounts paid by or on behalf of and/or credited to each of Purchaser and Seller
pursuant to this Agreement;

            (f) Evidence of Authority. A copy of resolutions of the members of
Purchaser, certified by the managing member of Purchaser to be in force and
unmodified as of the date and time of Closing and authorizing the purchase
contemplated herein and the execution and delivery of the documents required
hereunder and designating the signatures of the persons who are to execute and
deliver all such documents;

            (g) Seller Lease. Two (2) counterparts of the Seller Lease, executed
by Purchaser;

            (h) Transfer Documents. The RPT Return and NYS Tax Affidavit.

            (i) Environmental Insurance. A fully executed insurance policy
containing substantially the same terms and conditions as described in the quote
provided in Exhibit K-2 attached hereto.

            (j) Other Documents. Such other documents as shall be reasonably
requested by Seller's counsel to effectuate the purposes and intent of this
Agreement.

         5.3 CLOSING COSTS. Seller shall pay the attorneys' fees of Seller, the
brokerage commission due Broker pursuant to Section 10.1 of this Agreement, the
cost of the documentary stamps or transfer taxes imposed upon the conveyance of
the Property, all fees and recording charges for releasing liens (other than the
Permitted Exceptions) which Seller has an obligation or elects to remove,
including prepayment premiums or penalties, if any, and all other costs and
expenses incurred by Seller in closing and consummating the purchase and sale of
the Property pursuant hereto. Purchaser shall pay the costs of obtaining the
Survey, the cost of recording the Deed, the cost of all title examination fees
and expenses and title insurance premiums payable with respect to the owner's
title insurance policy issued by the Title Company to Purchaser, the cost of all
endorsements to Purchaser's owner's title insurance policy, the costs of issuing
and title insurance premiums for any mortgagee title insurance policy obtained
by Purchaser, the costs of the Survey, all other recording fees on all
instruments to be recorded in connection with these transactions, the attorneys'
fees of Purchaser, and all other costs and expenses incurred by Purchaser in the
performance of Purchaser's due diligence inspection of the Property (including
without limitation appraisal costs, environmental audit and assessment costs,
and engineering review costs) and in closing and consummating the purchase and
sale of the Property pursuant hereto.

                                      -27-
<PAGE>

         5.4 PRORATIONS AND CREDITS. The following items in this SECTION 5.4
shall be adjusted and prorated between Seller and Purchaser as of 11:59 P.M. on
the day preceding the Closing, based upon the actual number of days in the
applicable month or year:

            (a) Taxes. All general real estate taxes imposed by any governmental
authority ("Taxes") for the tax year in which the Closing occurs shall be
prorated between Purchaser and Seller with respect to the Property as of the
Closing. If the Closing occurs prior to the receipt by Seller of the tax bill
for the Property for applicable tax period in which the Closing occurs, Taxes
with respect to the Property shall be prorated for such calendar year or other
applicable tax period based upon the prior year's tax bill.

            (b) Reproration of Taxes. Within thirty (30) days of receipt of
final bills for Taxes, the party receiving said final tax bills shall furnish
copies of the same to the other party and shall prepare and present to such
other party a calculation of the reproration of such Taxes based upon the actual
amount of such Taxes for the year. The parties shall make the appropriate
adjusting payment between them within thirty (30) days after presentment to
Seller of Purchaser's calculation and appropriate back-up information. The
provisions of this SECTION 5.4(B) shall survive the Closing for a period of one
(1) year after the Closing Date.

            (c) Rents, Income and Other Expenses. Rents and any other amounts
paid to Seller by the tenants under the Leases (and any new lease entered into
in accordance with the terms of this Agreement) shall be prorated as of the
Closing Date and be adjusted against the Purchase Price on the basis of an
updated Rent Roll certified by Seller and dated as of the Closing, a draft of
which shall be prepared by Seller and delivered to Purchaser for Purchaser's
review and approval prior to Closing. Seller and Purchaser shall prorate all
rents, additional rent, common area maintenance charges, operating expense
contributions, tenant reimbursements and escalations, and all other payments
under the Leases (and any such new lease) received as of the Closing Date so
that at Closing Seller will receive monthly basic rent payments through the day
prior to the Closing Date and so that Seller will receive reimbursement for all
expenses paid by Seller through the day prior to the Closing Date for which
Seller is entitled to reimbursement under the Leases (and any such new lease)
(including, without limitation, Taxes) (such expenses shall be reasonably
estimated if not ascertainable as the Closing Date and then shall be re-adjusted
as provided in (f) below when actual amounts are determined), and so that the
excess, if any, is credited to Purchaser. Purchaser agrees to pay to Seller,
upon receipt, any rents or other payments by the tenants under the Leases that
apply to periods prior to Closing but which are received by Purchaser after
Closing; PROVIDED, HOWEVER, that any rents or other payments by any such tenant
received by Purchaser after Closing shall be applied first to the calendar month
during which the Closing Date occurs, then to any current amounts then owed to
Purchaser by such tenant and then to Seller for the calendar month immediately
preceding the calendar month during which the Closing Date occurs, with the
balance, if any, paid over to Seller to the extent of delinquencies existing on
the date of Closing to which Seller is entitled. It is understood and agreed
that except as provided for in the immediately preceding sentence Purchaser

                                      -28-
<PAGE>

shall not be legally responsible to Seller for the collection of any rents or
other charges payable with respect to the Leases or any portion thereof which
are delinquent or past due as of the Closing Date; but Purchaser agrees that
Purchaser shall send monthly notices for a period of three (3) consecutive
months in an effort to collect any rents and charges not collected as of the
Closing Date. Seller hereby retains its right to pursue the tenants under the
Leases for sums due Seller for periods attributable to Seller's ownership of the
Property. The provisions of this Section 5.4(c) shall survive the Closing.

            (d) Tenant Inducement Costs. Subject to the penultimate sentence of
this subsection (d), Seller shall pay all such Tenant Inducement Costs and
leasing commissions payable under the Lease with respect to all periods prior to
the Closing Date. If said amounts have not been paid in full on or before
Closing, Purchaser shall receive a credit against the Purchase Price in the
aggregate amount of all such Tenant Inducement Costs and leasing commissions
remaining unpaid at Closing, and Purchaser shall assume the obligation to pay
amounts payable after Closing up to the amount of such credit received at
Closing. Except as may be specifically provided to the contrary elsewhere in
this Agreement, Purchaser shall be responsible for the payment of all Tenant
Inducement Costs and leasing commissions (i) as a result of any renewals or
extensions or expansions of the existing Leases entered into after the Effective
Date hereof with the approval of Purchaser as set forth in this Agreement, and
(ii) under any new leases approved or deemed approved by Purchaser in accordance
with SECTION 4.3(A). The provisions of this SECTION 5.4(D) shall survive the
Closing.

            (e) Security Deposits. Purchaser shall receive at Closing a credit
for all security deposits transferred and assigned to Purchaser at Closing in
connection with the Leases and any new lease approved or deemed approved by
Purchaser in accordance with SECTION 4.3(A) hereof, together with an inventory
of such security deposits certified by Seller at Closing.

            (f) Operating Expenses; Year End Reconciliation. Personal property
taxes, installment payments of special assessment liens, vault charges, sewer
charges, utility charges, and normally prorated operating expenses actually paid
or payable by Seller as of the Closing Date shall be prorated as of the Closing
Date and adjusted against the Purchase Price, provided that within ninety (90)
days after the Closing, Purchaser and Seller will make a further adjustment for
such expenses which may have accrued or been incurred prior to the Closing Date,
but which were not paid as of the Closing Date. In addition, within ninety (90)
days after the close of the fiscal year used in calculating pass-throughs to the
tenants of operating expenses and/or common area maintenance costs under the
Leases (where such fiscal year includes the Closing Date), Seller and Purchaser
shall re-prorate on a fair and equitable basis all rents and income prorated
pursuant to this SECTION 5.4 as well as all expenses prorated pursuant to this
SECTION 5.4. All prorations of rent and other income shall be made based on the
cumulative amounts collected from the tenants under the Leases in such fiscal
year and applied first to actual expense amounts paid by Seller prior to the
Closing Date and then to Purchaser for actual expense amounts paid by Purchaser
from and after the Closing Date. The provisions of this SECTION 5.4(F) shall
survive the Closing.

            (g) Other Costs and Expenses; Survival. All other costs and expenses
customarily prorated for in similar transactions (including without limitation
the cost of oil in the tank(s) on the Property) shall be apportioned in
accordance with the Customs in Respect to Title Closings of the Real Estate
Board of New York, Inc. The provisions of this Section 5.4 shall survive the
Closing for twelve (12) months.

                                      -29-
<PAGE>

                        ARTICLE 6 CONDITIONS TO CLOSING

         6.1 CONDITIONS PRECEDENT TO PURCHASER'S OBLIGATIONS. The obligations of
Purchaser hereunder to consummate the transaction contemplated hereunder shall
in all respects be conditioned upon the satisfaction of each of the following
conditions prior to or simultaneously with the Closing (or at such earlier time
as may be provided below), any of which may be waived by Purchaser in its sole
discretion at or prior to the Closing Date:

            (a) Seller shall have performed, in all material respects, all
covenants, agreements and undertakings of Seller contained in this Agreement;

            (b) All representations and warranties of Seller as set forth in
this Agreement shall be true and correct in all material respects as of the date
of the Closing; and

            (c) In the event any condition in clauses (a) and (b) of this
SECTION 6.1 has not been satisfied (or otherwise waived by Purchaser) prior to
or on the Closing Date (as the same may be extended or postponed as provided in
this Agreement), Purchaser shall have the right, in its sole discretion, to
terminate this Agreement by written notice to Seller given prior to the Closing,
whereupon (i) Escrow Agent shall return the Earnest Money to Purchaser; and (ii)
except for those provisions of this Agreement which by their express terms
survive the termination of this Agreement, no party hereto shall have any other
or further rights or obligations under this Agreement.

         6.2 CONDITIONS PRECEDENT TO SELLER'S OBLIGATIONS. The obligations of
Seller hereunder to consummate the transactions contemplated hereunder shall in
all respects be conditioned upon the satisfaction of each of the following
conditions prior to or simultaneously with the Closing (or at such earlier time
as may be provided below), any of which may be waived by Seller in Seller's sole
discretion by written notice to Purchaser at or prior to the Closing Date:

            (a) Purchaser shall have paid and Seller shall have received the
Purchase Price, as adjusted pursuant to the terms and conditions of this
Agreement, which Purchase Price shall be payable in the amount and in the manner
provided for in this Agreement;

            (b) Purchaser shall have performed, in all material respects, all
covenants, agreements and undertakings of Purchaser contained in this Agreement;
and

            (c) All representations and warranties of Purchaser as set forth in
this Agreement shall be true and correct in all material respects as of the date
of this Agreement.

                      ARTICLE 7 CASUALTY AND CONDEMNATION

         7.1 CASUALTY. Risk of loss up to and including the Closing Date shall
be borne by Seller. In the event of any immaterial damage or destruction to the
Property or any portion thereof, Seller and Purchaser shall proceed to close
under this Agreement, and Purchaser will receive (and Seller will assign to

                                      -30-
<PAGE>

Purchaser at the Closing Seller's rights under insurance policies to receive)
any insurance proceeds (including any rent loss insurance applicable to any
period on and after the Closing Date) due Seller as a result of such damage or
destruction (less any amounts reasonably expended for restoration or collection
of proceeds) and assume responsibility for such repair, and Purchaser shall
receive a credit at Closing for any deductible amount under said insurance
policies. For purposes of this Agreement, the term "immaterial damage or
destruction" shall mean such instances of damage or destruction of the Property:
(i) which can be repaired or restored at a cost of $500,000.00 or less; and (ii)
which can be restored and repaired within one hundred eighty (180) days from the
date of such damage or destruction.

                  In the event of any material damage or destruction to the
Property or any portion thereof, Purchaser may, at its option, by notice to
Seller given within the earlier of twenty (20) days after Purchaser is notified
by Seller of such damage or destruction, or the Closing Date, but in no event
less than twenty (20) days after Purchaser is notified by Seller of such damage
or destruction (and if necessary the Closing Date shall be extended to give
Purchaser the full 20-day period to make such election): (i) terminate this
Agreement, whereupon Escrow Agent shall immediately return the Earnest Money to
Purchaser, or (ii) proceed to close under this Agreement, receive (and Seller
will assign to Purchaser at the Closing the rights of Seller under insurance
policies to receive) any insurance proceeds (including any rent loss insurance
applicable to the period on or after the Closing Date) due Seller as a result of
such damage or destruction (less any amounts reasonably expended for
restoration), and assume responsibility for such repair, and Purchaser shall
receive a credit at Closing for any deductible amount under said insurance
policies. If Purchaser fails to deliver to Seller notice of its election within
the period set forth above, Purchaser will conclusively be deemed to have
elected to proceed with the Closing as provided in clause (ii) of the preceding
sentence. If Purchaser elects or is deemed to have elected clause (ii) above,
Seller will cooperate with Purchaser after the Closing to assist Purchaser in
obtaining the insurance proceeds from the insurers of Seller. For purposes of
this Agreement "material damage or destruction" shall mean all instances of
damage or destruction that are not immaterial, as defined herein.

         7.2 CONDEMNATION. If, prior to the Closing, all or any part of the
Property is subjected to a bona fide threat of condemnation by a body having the
power of eminent domain or is taken by eminent domain or condemnation (or sale
in lieu thereof), or if Seller has received written notice that any condemnation
action or proceeding with respect to the Property is contemplated by a body
having the power of eminent domain (collectively, a "Taking"), Seller shall give
Purchaser immediate written notice of such Taking. In the event of any
immaterial Taking with respect to the Property or any portion thereof, Seller
and Purchaser shall proceed to close under this Agreement. For purposes of this
Agreement, the term "immaterial Taking" shall mean such instances of Taking of
the Property: (i) which do not result in a taking of any portion of the building
structure of the building occupied by tenants on the Property; (ii) which do not
result in a decrease in the number of parking spaces at the Property (taking
into account the number of additional parking spaces that can be provided within
180 days of such Taking); and (iii) which are not so extensive as to allow the
tenants under the Leases to terminate the Leases or abate or reduce rent payable
thereunder.

                                      -31-
<PAGE>

                  In the event of any material Taking of the Property or any
portion thereof, Purchaser may, at its option, by written notice to Seller given
within thirty (30) days after receipt of such notice from Seller, elect to
terminate this Agreement, or Purchaser may choose to proceed to close. If
Purchaser chooses to terminate this Agreement in accordance with this SECTION
7.2, then the Earnest Money shall be returned immediately to Purchaser by Escrow
Agent and the rights, duties, obligations, and liabilities of the parties
hereunder shall immediately terminate and be of no further force and effect,
except for those provisions of this Agreement which by their express terms
survive the termination of this Agreement. For purposes of this Agreement
"material Taking " shall mean all instances of a Taking that are not immaterial,
as defined herein.

                  If Purchaser does not elect to, or has no right to, terminate
this Agreement in accordance herewith on account of a Taking, this Agreement
shall remain in full force and effect and the sale of the Property contemplated
by this Agreement, less any interest taken by eminent domain or condemnation, or
sale in lieu thereof, shall be effected with no further adjustment and without
reduction of the Purchase Price, and at the Closing, Seller shall assign,
transfer, and set over to Purchaser all of the right, title, and interest of
Seller in and to any awards applicable to the Property that have been or that
may thereafter be made for such taking. At such time as all or a part of the
Property is subjected to a bona fide threat of condemnation and Purchaser shall
not have elected to terminate this Agreement as provided in this SECTION 7.2,
(i) Purchaser shall thereafter be permitted to participate in the proceedings as
if Purchaser were a party to the action, and (ii) Seller shall not settle or
agree to any award or payment pursuant to condemnation, eminent domain, or sale
in lieu thereof without obtaining Purchaser's prior written consent thereto in
each case.

         7.3 SURVIVAL. The provisions of this Article 7 shall survive Closing.

                         ARTICLE 8 DEFAULT AND REMEDIES

         8.1 PURCHASER'S DEFAULT. If Purchaser fails to consummate this
transaction for any reason other than the default of Seller, failure of a
condition to Purchaser's obligation to close, or the exercise by Purchaser of an
express right of termination granted herein, Seller shall be entitled, as its
sole remedy hereunder, to terminate this Agreement and to receive and retain the
Earnest Money as full liquidated damages for such default of Purchaser, the
parties hereto acknowledging that it is impossible to estimate more precisely
the damages which might be suffered by Seller upon Purchaser's default, and that
said Earnest Money is a reasonable estimate of the probable loss of Seller in
the event of default by Purchaser. The retention by Seller of said Earnest Money
is intended not as a penalty, but as full liquidated damages. The right to
retain the Earnest Money as full liquidated damages is the sole and exclusive
remedy of Seller in the event of default hereunder by Purchaser, and Seller
hereby waives and releases any right to (and hereby covenant that it shall not)
sue the Purchaser: (a) for specific performance of this Agreement, or (b) to
recover actual damages in excess of the Earnest Money. The foregoing liquidated
damages provision shall not apply to or limit Purchaser's liability for
Purchaser's obligations under SECTIONS 3.1(B), 3.1(C), 3.5 and 10.1 of this
Agreement. Purchaser hereby waives and releases any right to (and hereby
covenants that it shall not) sue Seller or seek or claim a refund of said
Earnest Money (or any part thereof) on the grounds it is unreasonable in amount
and exceeds the actual damages of Seller or that its retention by Seller
constitutes a penalty and not agreed upon and reasonable liquidated damages.

                                      -32-
<PAGE>

         8.2 SELLER'S DEFAULT. If Seller fails to perform any of its material
obligations under this Agreement for any reason other than Purchaser's default
or the permitted termination of this Agreement by Seller or Purchaser as
expressly provided herein Purchaser shall be entitled, as its sole remedy,
either (a) to receive the return of the Earnest Money from Escrow Agent and
payment by Seller of Purchaser's Reimbursable Due Diligence Expenses (as defined
below), which return and payment shall operate to terminate this Agreement and
release Seller from any and all liability hereunder except provisions that
expressly survive a termination of this Agreement, or (b) to enforce specific
performance of the obligation of Seller to execute and deliver the documents
required to convey the Property to Purchaser in accordance with this Agreement;
it being specifically understood and agreed that the remedy of specific
performance shall not be available to enforce any other obligation of Seller
hereunder; provided that Purchaser shall not be entitled to such remedies if
Purchaser waives any default of Seller and the Closing occurs. Purchaser
expressly waives its rights to seek damages in the event of the default of
Seller hereunder. Purchaser shall be deemed to have elected to terminate this
Agreement and to receive a return of the Earnest Money from Escrow Agent if
Purchaser fails to file suit for specific performance against Seller in a court
having jurisdiction, on or before ninety (90) days following the date upon which
the Closing was to have occurred. "Reimbursable Due Diligence Expenses" shall
mean all costs and expenses (including reasonable attorneys' fees) in an amount
not to exceed TWO HUNDRED THOUSAND DOLLARS ($200,000) incurred by Purchaser in
connection with the negotiation and preparation of this Agreement, Purchaser's
due diligence investigations of the Property and its operations and the
enforcement of this Agreement. If Seller fails to deliver all Tenant Estoppel
Certificates (but delivers Seller Estoppel Certificates in lieu thereof),
Purchaser shall not be entitled to receive the Reimbursable Due Diligence
Expenses in connection with such failure to deliver on the part of the Seller.

         8.3 SURVIVAL. The provisions of this Article 8 shall survive the
termination of this Agreement.

                              ARTICLE 9 ASSIGNMENT

         9.1 ASSIGNMENT. Subject to the next following sentence, this Agreement
and all rights and obligations hereunder shall not be assignable by any party
without the written consent of the other. Notwithstanding the foregoing to the
contrary, this Agreement and all of Purchaser's rights hereunder may be
transferred and assigned to any entity controlled by Purchaser. Any assignee or
transferee under any such assignment or transfer by Purchaser as to which the
written consent of Seller has been given or as to which the consent of Seller is
not required hereunder shall expressly assume all of Purchaser's duties,
liabilities and obligations under this Agreement (whether arising or accruing
prior to or after the assignment or transfer) by written instrument delivered to
Seller as a condition to the effectiveness of such assignment or transfer. No
assignment or transfer shall relieve the original Purchaser of any duties or
obligations hereunder, and the written assignment and assumption agreement shall
expressly so provide. For purposes of this SECTION 9.1, the term "control" shall
mean the ownership of at least fifty percent (50%) of the applicable entity.
Subject to the foregoing, this Agreement shall be binding upon and shall inure
to the benefit of the parties hereto and their respective legal representatives,
successors and permitted assigns. This Agreement is not intended and shall not
be construed to create any rights in or to be enforceable in any part by any
other persons.

                                      -33-
<PAGE>

                        ARTICLE 10 BROKERAGE COMMISSIONS

10.1 BROKER. Upon the Closing, and only in the event the Closing occurs, Seller
shall pay a brokerage commission to Greiner-Maltz Company of New York, Inc.
("Broker"), pursuant to a separate agreement between Seller and Broker. Broker
is representing Seller in this transaction. Seller shall and does hereby
indemnify and hold Purchaser harmless from and against any and all liability,
loss, cost, damage, and expense, including reasonable attorneys' fees actually
incurred and costs of litigation, Purchaser shall ever suffer or incur because
of any claim by any agent, salesman, or broker, whether or not meritorious, for
any fee, commission or other compensation with regard to this Agreement or the
sale and purchase of the Property contemplated hereby, and arising out of any
acts or agreements of Seller, including any claim asserted by Broker. Likewise,
Purchaser shall and does hereby indemnify and hold Seller free and harmless from
and against any and all liability, loss, cost, damage, and expense, including
reasonable attorneys' fees actually incurred and costs of litigation, Seller
shall ever suffer or incur because of any claim by any agent, salesman, or
broker, whether or not meritorious, for any fee, commission or other
compensation with respect to this Agreement or the sale and purchase of the
Property contemplated hereby and arising out of the acts or agreements of
Purchaser. This Section 10.1 shall survive the Closing until the expiration of
any applicable statute of limitations and shall survive any earlier termination
of this Agreement.

                            ARTICLE 11 MISCELLANEOUS

         11.1 NOTICES. Wherever any notice or other communication is required or
permitted hereunder, such notice or other communication shall be in writing and
shall be delivered by overnight courier, hand, facsimile, or sent by U.S.
registered or certified mail, return receipt requested, postage prepaid, to the
addresses or facsimile numbers set out below or at such other addresses as are
specified by written notice delivered in accordance herewith:

         PURCHASER:               c/o J.P. Morgan Investment Management Inc.
                                  245 Park Avenue, 26th Floor
                                  New York, New York 10167
                                  Attention:  Michael Duignan
                                  Facsimile: 212-648-2262

         with a copy to:          c/o RD Investments, LLC
                                  55 Fifth Avenue, 15th Floor
                                  New York, NY 10003
                                  Attention:  Jeffrey Rosenblum
                                  Facsimile:  (212) 627-9279

         and                      c/o J.P. Morgan Investment Management Inc.
                                  P.O. Box 5005
                                  New York, New York 10163-5005

                                      -34-
<PAGE>

         and                      Stroock & Stroock & Lavan LLP
                                  180 Maiden Lane
                                  New York, New York 10038
                                  Attention:  Brian Diamond, Esq.
                                  Facsimile:  (212) 806-6006

         SELLER                   Standard Motor Products, Inc.
                                  37-18 Northern Boulevard
                                  Long Island City, New York 11101
                                  Attention:  Robert H. Martin, Treasurer
                                  Facsimile:  (718) 784-3284

         with a copy to:          Standard Motor Products, Inc.
                                  37-18 Northern Boulevard
                                  Long Island City, New York 11101
                                  Attention: Carmine J. Broccole,
                                  VP General Counsel and Secretary
                                  Facsimile:  (718) 784-3284

         with a copy to:          Kelley Drye & Warren LLP
                                  101 Park Avenue
                                  New York, New York 10178
                                  Attention:  Bud Holman, Esq.
                                  Facsimile:  (212) 808-7897

Any notice or other communication (i) mailed as hereinabove provided shall be
deemed effectively given or received on the third (3rd) Business Day following
the postmark date of such notice or other communication, (ii) sent by overnight
courier or by hand shall be deemed effectively given or received upon receipt,
and (iii) sent by facsimile shall be deemed effectively given or received on the
day of such electronic transmission of such notice and confirmation of such
transmission if transmitted and confirmed prior to 5:00 p.m. local New York, New
York time on a Business Day and otherwise shall be deemed effectively given or
received on the first Business Day after the day of transmission of such notice
and confirmation of such transmission. Refusal to accept delivery shall be
deemed delivered.

         11.2 POSSESSION. Full and exclusive possession of the Property, subject
to the Permitted Exceptions and the rights of the tenants under the Leases,
shall be delivered by Seller to Purchaser on the Closing Date.

         11.3 TIME PERIODS. If the time period by which any right, option, or
election provided under this Agreement must be exercised, or by which any act
required hereunder must be performed, or by which the Closing must be held,
expires on a Saturday, Sunday, or holiday, then such time period shall be
automatically extended through the close of business on the next regularly
scheduled Business Day.

                                      -35-
<PAGE>

         11.4 PUBLICITY. The parties agree that, prior to Closing, and except
for disclosures required by law or governmental regulations applicable to such
party, no party shall, with respect to this Agreement and the transactions
contemplated hereby, contact or conduct negotiations with public officials, make
any public announcements or issue press releases regarding this Agreement or the
transactions contemplated hereby to any third party without the prior written
consent of the other party hereto. No party shall record this Agreement or any
notice hereof.

         11.5 DISCHARGE OF OBLIGATIONS. The acceptance by Purchaser of the Deed
hereunder shall be deemed to constitute the full performance and discharge of
each and every warranty and representation made by Seller and Purchaser herein
and every agreement and obligation on the part of Seller and Purchaser to be
performed pursuant to the terms of this Agreement, except those warranties,
representations, covenants and agreements which are specifically provided in
this Agreement to survive Closing.

         11.6 SEVERABILITY. This Agreement is intended to be performed in
accordance with, and only to the extent permitted by, all applicable laws,
ordinances, rules and regulations. If any provision of this Agreement, or the
application thereof to any person or circumstance, shall, for any reason and to
any extent be invalid or unenforceable, the remainder of this Agreement and the
application of such provision to other persons or circumstances shall not be
affected thereby but rather shall be enforced to the greatest extent permitted
by law.

         11.7 CONSTRUCTION. This Agreement shall not be construed more strictly
against one party than against the other merely by virtue of the fact that this
Agreement may have been prepared by counsel for one of the parties, it being
mutually acknowledged and agreed that Seller and Purchaser and their respective
counsel have contributed substantially and materially to the preparation and
negotiation of this Agreement. Accordingly, the normal rule of construction to
the effect that any ambiguities are to be resolved against the drafting party
shall not be employed in the interpretation of this Agreement or any exhibits or
amendments hereto.

         11.8 SALE NOTIFICATION LETTERS. Promptly following the Closing,
Purchaser shall deliver the Tenant Notice of Sale to the tenants under the
Leases, and the Other Notices of Sale to each service provider, the obligations
under whose respective Service Contracts Purchaser has assumed at Closing.

         11.9 GENERAL PROVISIONS. No failure of either party to exercise any
power given hereunder or to insist upon strict compliance with any obligation
specified herein, and no custom or practice at variance with the terms hereof,
shall constitute a waiver of either party's right to demand exact compliance
with the terms hereof. This Agreement contains the entire agreement of the
parties hereto, and no representations, inducements, promises, or agreements,
oral or otherwise, between the parties not embodied herein shall be of any force
or effect. Any amendment to this Agreement shall not be binding upon Seller or
Purchaser unless such amendment is in writing and executed by Seller and
Purchaser. The provisions of this Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective heirs, legal
representatives, successors, and permitted assigns. On the date of Closing,
Seller shall assign its rights and obligations hereunder to its affiliate,
Standard Motor Products, Inc., and Standard Motor Products, Inc. hereby agrees
to assume all rights, interests and obligations of this Agreement. The headings
inserted at the beginning of each paragraph are for convenience only, and do not
add to or subtract from the meaning of the contents of each paragraph. This

                                      -36-
<PAGE>

Agreement shall be construed, interpreted and enforced under the laws of the
State of New York. Except as otherwise provided herein, all rights, powers, and
privileges conferred hereunder upon the parties shall be cumulative but not
restrictive to those given by law. All personal pronouns used in this Agreement,
whether used in the masculine, feminine, or neuter gender shall include all
genders, and all references herein to the singular shall include the plural and
vice versa.

         11.10 ATTORNEY'S FEES. If Purchaser or Seller brings an action at law
or equity against the other in order to enforce the provisions of this Agreement
or as a result of an alleged default under this Agreement, the prevailing party
in such action shall be entitled to recover court costs and reasonable
attorney's fees actually incurred from the other.

         11.11 COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which when taken together shall constitute one and the
same original. To facilitate the execution and delivery of this Agreement, the
parties may execute and exchange counterparts of the signature pages by
facsimile, and the signature page of either party to any counterpart may be
appended to any other counterpart.

         11.12 EFFECTIVE AGREEMENT. The submission of this Agreement for
examination is not intended to nor shall constitute an offer to sell, or a
reservation of, or option or proposal of any kind for the purchase of the
Property. In no event shall any draft of this Agreement create any obligation or
liability, it being understood that this Agreement shall be effective and
binding only when a counterpart of this Agreement has been executed and
delivered by each party hereto.

         11.13 CERTIORARI. Seller shall retain sole and absolute interest in
proceedings against The City New York and its agencies, including, but not
limited to, the New York City Department of Finance, New York City Tax
Commission and New York City Law Department, which relate to the protest or
appeal of the assessment of real property for tax years prior to the tax year in
which the Closing occurs. As such, seller shall have sole interest in and sole
authority to settle, pursue or initiate any proceedings for tax years commencing
prior to the sale of the property. Said authority shall survive the sale of the
property.

         11.14 DEFEASANCE. Seller and Purchaser acknowledge that the mortgage
(the "Mortgage") presently encumbering the Property shall be defeased in
connection with the closing of the Sale. Seller and Purchaser agree to cooperate
with each other in order to attempt to effect a "New York style" defeasance of
the Mortgage and assignment of the Mortgage to Purchaser's lender. Purchaser's
obligation to cooperate with Seller's defeasance of the Mortgage shall remain in
effect notwithstanding any failure to effect the assignment of the Mortgage to
Purchaser's lender. Such cooperation on the part of Purchaser shall include,
without limitation, Purchaser's causing its lender to fund Purchaser's loan one
(1) business day prior to the actual closing of the Sale and for Purchaser to
deposit the amount Purchase Price with an escrow agent (presumably the Title
Company). The escrow agent shall be directed to invest the money in a manner
reasonably acceptable to both Seller and Purchaser and Purchaser shall be
entitled to the earnings thereon. Purchaser acknowledges that Purchaser shall
incur costs due to and in connection with such early funding of Purchaser's
loan.

                                      -37-
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the day, month and year first above written.

                                  SELLER:

                                  SMP REAL ESTATE LLC,
                                  a Delaware limited liability company

                                  By: /s/ Robert H. Martin
                                      ---------------------
                                       Name:    Robert H. Martin
                                       Title:   Treasurer

                                  PURCHASER:

                                  EX II NORTHERN BOULEVARD ACQUISITION LLC,
                                  a Delaware limited liability company

                                  By: Excelsior, LLC, a Delaware limited
                                      liability company, its sole member

                                  By: J. P. Morgan Investment Management Inc.,
                                      its manager

                                  By: /s/ Michael J. Duignan
                                      ------------------------
                                       Name:    Michael J. Duignan
                                       Title:   Vice President

                                  STANDARD MOTOR PRODUCTS, INC.,
                                  a New York corporation
                                  (with respect to Section 11.9)

                                  By: /s/ Robert H. Martin
                                      ---------------------
                                       Name:    Robert H. Martin
                                       Title:   Treasurer

                                      -38-STANDARD FORM OF OFFICE LEASE                     7/04
                     THE REAL ESTATE BOARD OF NEW YORK, INC.

         Agreement of Lease, made as of this 12th day of March in the year 2008,
between 37-18 NORTHERN BOULEVARD LLC party of the first part, hereinafter
referred to as OWNER, and STANDARD MOTOR PRODUCTS INC. party of the second part,
hereinafter referred to as TENANT,

         Witnesseth: Owner hereby leases to Tenant and Tenant hereby hires from
Owner certain premises as described in Article 37 of this Lease in the building
known as 37-18 Northern Boulevard, Long Island City, New York, for the term of
approximately ten (10) years commencing on the Commencement Date and expiring on
the Expiration Date as described in Article 38 of this Lease both dates
inclusive, at the base annual rental rate as described in Article 39 of this
Lease which Tenant agrees to pay in lawful money of the United States, which
shall be legal tender in payment of all debts and dues, public and private, at
the time of payment, in equal monthly installments in advance on the first day
of each month during said term, at the office of Owner or such other place as
Owner may designate, without any setoff or deduction whatsoever, except that
Tenant shall pay the first monthly installment(s) on the execution hereof
(unless this lease be a renewal).

         In the event that, at the commencement of the term of this lease, or
thereafter, Tenant shall be in default in the payment of rent to Owner pursuant
to the terms of another lease with Owner or with Owner's predecessor in
interest, Owner may at Owner's option and without notice to Tenant add the
amount of such arrears to any monthly installment of rent payable hereunder and
the same shall be payable to Owner as additional rent.

         The parties hereto, for themselves, their heirs, distributees,
executors, administrators, legal representatives, successors and assigns, hereby
covenant as follows:

         1. RENT. Tenant shall pay the rent as above and as hereinafter
provided.

         2. OCCUPANCY. Tenant shall use and occupy the demised premises for
office and warehouse and for no other purpose.

         3. TENANT ALTERATIONS. Tenant shall make no changes in or to the
demised premises of any nature without Owner's prior written consent which
consent shall not (subject to the provisions of Article 45 below), be
unreasonably withheld, conditioned or delayed. Subject to the prior written
consent of Owner, and to the provisions of this article, Tenant, at Tenant's
expense, may make alterations, installations, additions or improvements which
are non-structural and which do not affect utility services or plumbing and
electrical lines, in or to the interior of the demised premises, by using
contractors or mechanics first approved in each instance by Owner which approval
shall not be unreasonably withheld, conditioned or delayed. Tenant shall, before
making any alterations, additions, installations or improvements, at its
expense, obtain all permits, approvals and certificates required by any
governmental or quasi-governmental bodies and (upon completion) certificates of
final approval thereof, and shall deliver promptly duplicates of all such
permits, approvals and certificates to Owner, and Tenant agrees to carry, and
will cause Tenant's contractors and sub-contractors to carry, such worker's
compensation, commercial general
<PAGE>

liability, personal and property damage insurance as Owner may require. If any
mechanic's lien is filed against the demised premises, or the building of which
the same forms a part, for work claimed to have been done for, or materials
furnished to, Tenant, whether or not done pursuant to this article, the same
shall be discharged by Tenant within thirty days thereafter, at Tenant's
expense, by payment or filing a bond as permitted by law. All fixtures and all
paneling, partitions, railings and like installations, installed in the demised
premises at any time, either by Tenant or by Owner on Tenant's behalf, shall,
upon installation, become the property of Owner and shall remain upon and be
surrendered with the demised premises. Nothing in this article shall be
construed to give Owner title to, or to prevent Tenant's removal of, trade
fixtures, moveable office furniture and equipment, but upon removal of same from
the demised premises or upon removal, of other installations as may be required
by Owner, Tenant shall immediately, and at its expense, repair and restore the
demised premises to the condition existing prior to any such installations, and
repair any damage to the demised premises or the building due to such removal.
All property permitted or required to be removed by Tenant at the end of the
term remaining in the demised premises after Tenant's removal shall be deemed
abandoned and may, at the election of Owner, either be retained as Owner's
property or may be removed from the demised premises by Owner, at Tenant's
expense.

         4. MAINTENANCE AND REPAIRS. Tenant shall, throughout the term of this
lease, take good care of the demised premises and the fixtures and appurtenances
therein. Tenant shall be responsible for all damage or injury to the demised
premises or any other part of the building and the systems and equipment
thereof, whether requiring structural or nonstructural repairs caused by, or
resulting from, carelessness, omission, neglect or improper conduct of Tenant,
Tenant's subtenants, agents, employees, invitees or licensees, or which arise
out of any work, labor, service or equipment done for, or supplied to, Tenant or
any subtenant, or arising out of the installation, use or operation of the
property or equipment of Tenant or any subtenant. Tenant shall also repair all
damage to the building and the demised premises caused by the moving of Tenant's
fixtures, furniture and equipment. Tenant shall promptly make, at Tenant's
expense, all repairs in and to the demised premises for which Tenant is
responsible. Any other repairs in or to the building or the facilities and
systems thereof, for which Tenant is responsible, shall be performed by Owner at
the Tenant's expense. Owner shall maintain in good working order and repair the
exterior and the structural portions of the building, including the structural
portions of the demised premises, and the public portions of the building
interior and the building plumbing, electrical, heating and ventilating systems
(to the extent such systems presently exist) serving the demised premises
(without limitation, the term "structural" shall be deemed to include the roof
of the building). Tenant agrees to give prompt notice of any defective condition
in the demised premises for which Owner may be responsible hereunder. There
shall be no allowance to Tenant for diminution of rental value and no liability
on the part of Owner by reason of inconvenience, annoyance or injury to business
arising from Owner or others making repairs, alterations, additions or
improvements in or to any portion of the building or the demised premises, or in
and to the fixtures, appurtenances or equipment thereof. It is specifically
agreed that Tenant shall not be entitled to any setoff or reduction of rent by
reason of any failure of Owner to comply with the covenants of this or any other
article of this lease. Tenant agrees that Tenant's sole remedy at law in such
instance will be by way of an action for damages for breach of contract. The
provisions of this Article 4 shall not apply in the case of fire or other
casualty, which are dealt with in Article 9 hereof.

                                      -2-
<PAGE>

         5. WINDOW CLEANING. Tenant will not clean nor require, permit, suffer
or allow any window in the demised premises to be cleaned from the outside in
violation of Section 202 of the Labor Law or any other applicable law, or of the
Rules of the Board of Standards and Appeals, or of any other Board or body
having or asserting jurisdiction.

         6. REQUIREMENTS OF LAW, FIRE INSURANCE, FLOOR LOADS. Prior to the
commencement of the lease term, if Tenant is then in possession, and at all
times thereafter, Tenant, at Tenant's sole cost and expense, shall promptly
comply with all present and future laws, orders and regulations of all state,
federal, municipal and local governments, departments, commissions and boards
and any direction of any public officer pursuant to law, and all orders, rules
and regulations of the New York Board of Fire Underwriters, Insurance Services
Office, or any similar body which shall impose any violation, order or duty upon
Owner or Tenant with respect to the demised premises, whether or not arising out
of Tenant's use or manner of use thereof, (including Tenant's permitted use) or,
with respect to the building if arising out of Tenant's use or manner of use of
the demised premises or the building (including the use permitted under the
lease), provided, however, Tenant shall not be responsible to cure any
conditions existing prior to the commencement of the term of this Lease or
effect the dismissal of any violations given in connection with any condition
existing prior to the commencement of the term of this Lease. Nothing herein
shall require Tenant to make structural repairs or alterations unless Tenant
has, by its manner of use of the demised premises or method of operation
therein, violated any such laws, ordinances, orders, rules, regulations or
requirements with respect thereto. Tenant may, after securing Owner to Owner's
satisfaction against all damages, interest, penalties and expenses, including,
but not limited to, reasonable attorney's fees, by cash deposit or by surety
bond in an amount and in a company satisfactory to Owner, contest and appeal any
such laws, ordinances, orders, rules, regulations or requirements provided same
is done with all reasonable promptness and provided such appeal shall not
subject Owner to prosecution for a criminal offense, or constitute a default
under any lease or mortgage under which Owner may be obligated, or cause the
demised premises or any part thereof to be condemned or vacated. Tenant shall
not do or permit any act or thing to be done in or to the demised premises which
is contrary to law, or which will invalidate or be in conflict with public
liability, fire or other policies of insurance at any time carried by or for the
benefit of Owner with respect to the demised premises or the building of which
the demised premises form a part, or which shall or might subject Owner to any
liability or responsibility to any person, or for property damage. Tenant shall
not keep anything in the demised premises, except as now or hereafter permitted
by the Fire Department, Board of Fire Underwriters, Fire Insurance Rating
Organization or other authority having jurisdiction, and then only in such
manner and such quantity so as not to increase the rate for fire insurance
applicable to the building, nor use the demised premises in a manner which will
increase the insurance rate for the building or any property located therein
over that in effect prior to the commencement of Tenant's occupancy. Tenant
shall pay all costs, expenses, fines, penalties, or damages, which may be
imposed upon Owner by reason of Tenant's failure to comply with the provisions
of this article, and if by reason of such failure the fire insurance rate shall,
at the beginning of this lease, or at any time thereafter, be higher than it
otherwise would be, then, Tenant shall reimburse Owner, as additional rent
hereunder, for that portion of all fire insurance premiums thereafter paid by
Owner which shall have been charged because of such failure by Tenant. In any
action or proceeding wherein Owner and Tenant are parties, a schedule or
"make-up" of rate for the building or the demised premises issued by the New
York Fire Insurance Exchange, or other body making fire insurance rates

                                      -3-
<PAGE>

applicable to said premises shall be conclusive evidence of the facts therein
stated and of the several items and charges in the fire insurance rates then
applicable to said premises. Tenant shall not place a load upon any floor of the
demised premises exceeding the floor load per square foot area which it was
designed to carry and which is allowed by law. Owner reserves the right to
reasonably prescribe the weight and position of all safes, business machines and
mechanical equipment. Such installations shall be placed and maintained by
Tenant, at Tenant's expense, in settings sufficient, in Owner's reasonable
judgment, to absorb and prevent vibration, noise and annoyance.

         7. SUBORDINATION. This lease is subject and subordinate to all ground
or underlying leases and to all mortgages which may now or hereafter affect such
leases or the real property of which the demised premises are a part, and to all
renewals, modifications, consolidations, replacements and extensions of any such
underlying leases and mortgages. This clause shall be self-operative and no
further instrument of subordination shall be required by any ground or
underlying lessor or by any mortgagee, affecting any lease or the real property
of which the demised premises are a part. In confirmation of such subordination,
Tenant shall from time to time execute promptly any certificate that Owner may
request.

         8. PROPERTY LOSS, DAMAGE REIMBURSEMENT INDEMNITY. Owner or its agents
shall not be liable for any damage to property of Tenant, or of others entrusted
to employees of the building, nor for loss of or damage to any property of
Tenant by theft or otherwise, nor for any injury or damage to persons or
property resulting from any cause of whatsoever nature, unless caused by, or due
to, the negligence of Owner, its agents, servants or employees. Owner or its
agents will not be liable for any such damage caused by other tenants or persons
in, upon or about said building, or caused by operations in construction of any
private, public or quasi public work. If at any time any windows of the demised
premises are temporarily closed, darkened or bricked up (or permanently closed,
darkened or bricked up, if required by law) for any reason whatsoever including,
but not limited to, Owner's own acts, Owner shall not be liable for any damage
Tenant may sustain thereby, and Tenant shall not be entitled to any compensation
therefore, nor abatement or diminution of rent, nor shall the same release
Tenant from its obligations hereunder, nor constitute an eviction. Tenant shall
indemnify and save harmless Owner against and from all liabilities, obligations,
damages, penalties, claims, costs and expenses for which Owner shall not be
reimbursed by insurance, including reasonable attorneys' fees, paid, suffered or
incurred as a result of any breach by Tenant, Tenant's agents, contractors,
employees, invitees, or licensees, of any covenant or condition of this lease,
or the carelessness, negligence or improper conduct of the Tenant, Tenant's
agents, contractors, employees, invitees or licensees. Tenant's liability under
this lease extends to the acts and omissions of any subtenant, and any agent,
contractor, employee, invitee or licensee of any subtenant. In case any action
or proceeding is brought against Owner by reason of any such claim, Tenant, upon
written notice from Owner, will, at Tenant's expense, resist or defend such
action or proceeding by counsel approved by Owner in writing, such approval not
to be unreasonably withheld.

         9. DESTRUCTION, FIRE AND OTHER CASUALTY. (a) If the demised premises or
any part thereof shall be damaged by fire or other casualty, Tenant shall give
immediate notice thereof to Owner, and this lease shall continue in full force
and effect except as hereinafter set forth. (b) If the demised premises are
partially damaged or rendered partially unusable by fire or other casualty, the
damages thereto shall be repaired by, and at the expense of, Owner, and the rent
and other items of additional rent, until such repair shall be substantially

                                      -4-
<PAGE>

completed, shall be apportioned from the day following the casualty, according
to the part of the demised premises which is usable for the reasonable conduct
of Tenant's business. (c) If the demised premises are totally damaged or
rendered wholly unusable by fire or other casualty, then the rent and other
items of additional rent, as hereinafter expressly provided, shall be
proportionately paid up to the time of the casualty, and thenceforth shall cease
until the date when the demised premises shall have been repaired and restored
by Owner (or if sooner reoccupied in part by the Tenant then rent shall be
apportioned as provided in subsection (b) above), subject to Owner's right to
elect not to restore the same as hereinafter provided. (d) If the demised
premises are rendered wholly unusable or (whether or not the demised premises
are damaged in whole or in part) if the building shall be so damaged that Owner
shall decide to demolish it or to rebuild it, then, in any of such events, Owner
may elect to terminate this lease by written notice to Tenant, or if the demised
premises are rendered wholly unusable whether or not Owner elects to restore the
damage, Tenant may elect to terminate this Lease by written notice to Owner, if
the restoration period (as reasonably determined by Owner's contractor or
architect) exceeds 365 days. If the damage was caused by the Tenant , Tenant
shall not have the right to terminate the Lease, given within ninety (90) days
after such fire or casualty, or thirty (30) days after adjustment of the
insurance claim for such fire or casualty, whichever is sooner, specifying a
date for the expiration of the lease, which date shall not be more than sixty
(60) days after the giving of such notice, and upon the date specified in such
notice the term of this lease shall expire as fully and completely as if such
date were the date set forth above for the termination of this lease, and Tenant
shall forthwith quit, surrender and vacate the demised premises without
prejudice however, to Landlord's rights and remedies against Tenant under the
lease provisions in effect prior to such termination, and any rent owing shall
be paid up to such date, and any payments of rent made by Tenant which were on
account of any period subsequent to such date shall be returned to Tenant.
Unless Owner or Tenant shall serve a termination notice as provided for herein,
Owner shall make the repairs and restorations under the conditions of (b) and
(c) hereof, with all reasonable expedition, subject to delays due to adjustment
of insurance claims, labor troubles and causes beyond Owner's control. After any
such casualty, Tenant shall cooperate with Owner's restoration by removing from
the demised premises as promptly as reasonably possible, all of Tenant's
salvageable inventory and movable equipment, furniture, and other property.
Tenant's liability for rent shall resume five (5) days after written notice from
Owner that the demised premises are substantially ready for Tenant's occupancy.
(e) Nothing contained hereinabove shall relieve Tenant from liability that may
exist as a result of damage from fire or other casualty. Notwithstanding
anything contained to the contrary in subdivisions (a) through (e) hereof,
including Owner's obligation to restore under subparagraph (b) above, each party
shall look first to any insurance in its favor before making any claim against
the other party for recovery for loss or damage resulting from fire or other
casualty, and to the extent that such insurance is in force and collectible, and
to the extent permitted by law, Owner and Tenant each hereby releases and waives
all right of recovery with respect to subparagraphs (b), (d) and (e) above,
against the other, or any one claiming through or under each of them by way of
subrogation or otherwise. The release and waiver herein referred to shall be
deemed to include any loss or damage to the demised premises and/or to any
personal property, equipment, trade fixtures, goods and merchandise located
therein. The foregoing release and waiver shall be in force only if both
releasors' insurance policies contain a clause providing that such a release or
waiver shall not invalidate the insurance. If, and to the extent, that such
waiver can be obtained only by the payment of additional premiums, then the

                                      -5-
<PAGE>

party benefiting from the waiver shall pay such premium within ten days after
written demand or shall be deemed to have agreed that the party obtaining
insurance coverage shall be free of any further obligation under the provisions
hereof with respect to waiver of subrogation. Tenant acknowledges that Owner
will not carry insurance on Tenant's furniture and/or furnishings or any
fixtures or equipment, improvements, or appurtenances removable by Tenant, and
agrees that Owner will not be obligated to repair any damage thereto or replace
the same. (f) Tenant hereby 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.

         10. EMINENT DOMAIN. If the whole or any part of the demised premises
shall be acquired or condemned by Eminent Domain for any public or quasi public
use or purpose, then, and in that event, the term of this lease shall cease and
terminate from the date of title vesting in such proceeding, and Tenant shall
have no claim for the value of any unexpired term of said lease, and assigns to
Owner, Tenant's entire interest in any such award. Tenant shall have the right
to make an independent claim to the condemning authority for the value of
Tenant's moving expenses and personal property, trade fixtures and equipment,
provided Tenant is entitled pursuant to the terms of the lease to remove such
property, trade fixtures and equipment at the end of the term, and provided
further such claim does not reduce Owner's award.

         11. ASSIGNMENT, MORTGAGE, ETC. Tenant, for itself, its heirs,
distributees, executors, administrators, legal representatives, successors and
assigns, expressly covenants that it shall not assign, mortgage or encumber this
agreement, nor underlet, or suffer or permit the demised premises or any part
thereof to be used by others, without the prior written consent of Owner in each
instance. Transfer of the majority of the stock of a corporate Tenant or the
majority interest in any partnership or other legal entity which is Tenant shall
be deemed an assignment. If this lease be assigned, or if the demised premises
or any part thereof be underlet or occupied by anybody other than Tenant, Owner
may, after default by Tenant, collect rent from the assignee, under-Tenant or
occupant, and apply the net amount collected to the rent herein reserved, but no
such assignment, underletting, occupancy or collection shall be deemed a waiver
of this covenant, or 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 Owner to an
assignment or underletting shall not in any way be construed to relieve Tenant
from obtaining the express consent in writing of Owner to any further assignment
or underletting.

         12. ELECTRIC CURRENT. Rates and conditions in respect to submetering or
rent inclusion, as the case may be, to be added in RIDER attached hereto. Tenant
covenants and agrees that at all times its use of electric current shall not
exceed the capacity of existing feeders to the building or the risers or wiring
installation, and Tenant may not use any electrical equipment which, in Owner's
opinion, reasonably exercised, will overload such installations or interfere
with the use thereof by other Tenants of the building. The change at any time of
the character of electric service shall in no way make Owner liable or
responsible to Tenant, for any loss, damages or expenses which Tenant may
sustain.

         13. ACCESS TO PREMISES. Owner or Owner's agents shall have the right
(but shall not be obligated) to enter the demised premises in any emergency at
any time, and, at other reasonable times after reasonable prior notice shall
have been given to Tenant, to examine the same and to make such repairs,

                                      -6-
<PAGE>

replacements and improvements as Owner may deem necessary and reasonably
desirable to the demised premises or to any other portion of the building or
which Owner may elect to perform. Tenant shall permit Owner to use and maintain
and replace pipes, ducts, and conduits in and through the demised premises and
to erect new pipes, ducts, and conduits therein, provided they are concealed
within the walls, floor, or ceiling. Owner may, during the progress of any work
in the demised premises, take all necessary materials and equipment into said
premises without the same constituting an eviction provided Owner shall place
such materials and equipment in an area reasonably designated by Tenant and
shall not "store" same in the demised premises except to the extent reasonably
necessary, nor shall the Tenant be entitled to any abatement of rent while such
work is in progress, nor to any damages by reason of loss or interruption of
business or otherwise. Owner shall use commercially reasonable efforts to
perform such work in a manner which minimizes any adverse affect upon Tenant's
use, enjoyment and conduct of Tenant's business in the demised premises. Owner
shall leave the demised premises broom clean at the end of each day of the
performance of such work. Throughout the term hereof, Owner shall have the right
to enter the demised premises at reasonable hours for the purpose of showing the
same to prospective purchasers or mortgagees of the building, and during the
last six months of the term, for the purpose of showing the same to prospective
Tenants. If Tenant is not present to open and permit an entry into the demised
premises, Owner or Owner's agents may enter the same whenever such entry may be
necessary or permissible by master key or forcibly, and provided reasonable care
is exercised to safeguard Tenant's property, such entry shall not render Owner
or its agents liable therefore, nor in any event shall the obligations of Tenant
hereunder be affected.

         14. VAULT, VAULT SPACE, AREA. No vaults, vault space or area, whether
or not enclosed or covered, not within the property line of the building, is
leased hereunder, anything contained in or indicated on any sketch, blue print
or plan, or anything contained elsewhere in this lease to the contrary
notwithstanding. Owner makes no representation as to the location of the
property line of the building. All vaults and vault space and all such areas not
within the property line of the building, which Tenant may be permitted to use
and/or occupy, is to be used and/or occupied under a revocable license, and if
any such license be revoked, or if the amount of such space or area be
diminished or required by any federal, state or municipal authority or public
utility, Owner shall not be subject to any liability, nor shall Tenant be
entitled to any compensation or diminution or abatement of rent, nor shall such
revocation, diminution or requisition be deemed constructive or actual eviction.
Any tax, fee or charge of municipal authorities for such vault or area shall be
paid by Tenant.

         15. OCCUPANCY. Tenant will not at any time use or occupy the demised
premises in violation of the certificate of occupancy issued for the building of
which the demised premises are a part. Tenant has inspected the demised premises
and accepts them as is, subject to the riders annexed hereto with respect to
Owner's work, if any. In any event, Owner makes no representation as to the
condition of the demised premises, and Tenant agrees to accept the same subject
to violations, whether or not of record, provided Tenant shall have no
obligation to cure the subject condition and/or effect the dismissal of the
subject violation, unless the same was caused by the Tenant or anybody acting
by, through, or under Tenant.

                                      -7-
<PAGE>

         16. BANKRUPTCY.

                  16.1 Anything elsewhere in this lease to the contrary
notwithstanding, this lease may be cancelled by Owner by the sending of a
written notice to Tenant within a reasonable time after the happening of any one
or more of the following events: (1) the commencement of a case in bankruptcy or
under the laws of any state naming Tenant (or a guarantor of any of Tenant's
obligations under this lease) as the debtor; or (2) the making by Tenant (or a
guarantor of any of Tenant's obligations under this lease) of an assignment or
any other arrangement for the benefit of creditors under any state statute.
Neither Tenant nor any person claiming through or under Tenant, or by reason of
any statute or order of court, shall thereafter be entitled to possession of the
premises demised but shall forthwith quit and surrender the demised premises. If
this lease shall be assigned in accordance with its terms, the provisions of
this Article 16 shall be applicable only to the party then owning Tenant's
interest in this lease.

                  16.2 It is stipulated and agreed that in the event of the
termination of this lease pursuant to (a) hereof, Owner shall forthwith,
notwithstanding any other provisions of this lease to the contrary, be entitled
to recover from Tenant as and for liquidated damages, an amount equal to the
difference between the rent reserved hereunder for the unexpired portion of the
term demised and the fair and reasonable rental value of the demised premises
for the same period. In the computation of such damages the difference between
any installment of rent becoming due hereunder after the date of termination,
and the fair and reasonable rental value of the demised premises for the period
for which such installment was payable, shall be discounted to the date of
termination at the rate of four percent (4%) per annum. If such demised premises
or any part thereof be re-let by the Owner for the unexpired term of said lease,
or any part thereof, before presentation of proof of such liquidated damages to
any court, commission or tribunal, the amount of rent reserved upon such
re-letting shall be deemed to be the fair and reasonable rental value for the
part or the whole of the demised premises so re-let during the term of the
re-letting. Nothing herein contained shall limit or prejudice the right of the
Owner to prove for and obtain as liquidated damages, by reason of such
termination, an amount equal to the maximum allowed by any statute or rule of
law in effect at the time when, and governing the proceedings in which, such
damages are to be proved, whether or not such amount be greater, equal to, or
less than, the amount of the difference referred to above.

         17. DEFAULT.

                  17.1 If Tenant defaults in fulfilling any of the covenants of
this lease; or if the demised premises become vacant or deserted; or if any
execution or attachment shall be issued against Tenant or any of Tenant's
property, whereupon the demised premises shall be taken or occupied by someone
other than Tenant; or if this lease be rejected under ss.365 of Title 11 of the
U.S. Code (Bankruptcy Code); or if Tenant shall have failed, after five (5) days
written notice, to redeposit with Owner any portion of the security deposit
hereunder which Owner has applied to the payment of any rent and additional rent
due and payable hereunder; or if Tenant shall be in default with respect to any
other lease between Owner and Tenant; or if Tenant shall fail to move into or
take possession of the demised premises within thirty (30) days after the
commencement of the term of this lease, then, in any one or more of such events,
upon Owner serving a written fifteen (15) days notice upon Tenant specifying the
nature of said default, and upon the expiration of said fifteen (15) days, if

                                      -8-
<PAGE>

Tenant shall have failed to comply with or remedy such default, or if the said
default or omission complained of shall be of a nature that the same cannot be
completely cured or remedied within said fifteen (15) day period, and if Tenant
shall not have diligently commenced curing such default within such fifteen (15)
day period, and shall not thereafter with reasonable diligence and in good
faith, proceed to remedy or cure such default, then Owner may serve a written
five (5) days notice of cancellation of this lease upon Tenant, and upon the
expiration of said five (5) days this lease and the term thereunder shall end
and expire as fully and completely as if the expiration of such five (5) day
period were the day herein definitely fixed for the end and expiration of this
lease and the term thereof, and Tenant shall then quit and surrender the demised
premises to Owner, but Tenant shall remain liable as hereinafter provided.

                  17.2 If the notice provided for in 17.1 hereof shall have been
given, and the term shall expire as aforesaid, Owner may without notice,
re-enter the demised premises either by force or otherwise, and dispossess
Tenant by summary proceedings or otherwise, and the legal representative of
Tenant or other occupant of the demised premises, and remove their effects and
hold the demised premises as if this lease had not been made, and Tenant hereby
waives the service of notice of intention to re-enter or to institute legal
proceedings to that end. If Tenant shall make default hereunder, and fail to
cure same within the notice and cure period provided for in Section 17.1 above,
prior to the date fixed as the commencement of any renewal or extension of this
lease, Owner may cancel and terminate such renewal or extension agreement by
written notice.

         18. REMEDIES OF OWNER AND WAIVER OF REDEMPTION. In case of any such
default, re-entry, expiration and/or dispossess by summary proceedings or
otherwise, (a) the rent shall become due thereupon and be paid up to the time of
such re-entry, dispossess and/or expiration, (b) Owner may re-let the demised
premises or any part or parts thereof, either in the name of Owner or otherwise,
for a term or terms, which may at Owner'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 free rent or charge a higher rental than
that in this lease, and/or (c) Tenant or the legal representatives of Tenant
shall also pay to Owner as liquidated damages for the failure of Tenant to
observe and perform said Tenant's covenants herein contained, any deficiency
between the rent hereby reserved and/or covenanted to be paid and the net
amount, if any, of the rents collected 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. The failure of Owner to
re-let the demised premises, or any part or parts thereof, shall not release or
affect Tenant's liability for damages. In computing such liquidated damages
there shall be added to the said deficiency such expenses as Owner may incur in
connection with re-letting, such as legal expenses, reasonable attorney's fees,
brokerage, advertising and for keeping the demised premises in good order or for
preparing the same for re-letting. Any such liquidated damages shall be paid in
monthly installments by Tenant on the rent day specified in this lease, and any
suit brought to collect the amount of the deficiency for any month shall not
prejudice in any way the rights of Owner to collect the deficiency for any
subsequent month by a similar proceeding. Owner, in putting the demised premises
in good order or preparing the same for re-rental may, at Owner's option, make
such alterations, repairs, replacements, and/or decorations in the demised
premises as Owner, in Owner's sole judgment, considers advisable and necessary
for the purpose of re-letting the demised premises, and the making of such
alterations, repairs, replacements, and/or decorations shall not operate or be
construed to release Tenant from liability hereunder as aforesaid. Owner shall

                                      -9-
<PAGE>

in no event be liable in any way whatsoever for failure to re-let the demised
premises, or in the event that the demised premises are re-let, for failure to
collect the rent thereof under such re-letting, and in no event shall Tenant be
entitled to receive any excess, if any, of such net rents collected over the
sums payable by Tenant to Owner hereunder. In the event of a breach or
threatened breach by Tenant of any of the covenants or provisions hereof, Owner
shall have the right of injunction and the right to invoke any remedy allowed at
law or in equity as if re-entry, summary proceedings and other remedies were not
herein provided for. Mention in this lease of any particular remedy, shall not
preclude Owner from any other remedy, in law or in equity. Tenant hereby
expressly waives any and all rights of redemption granted by or under any
present or future laws in the event of Tenant being evicted or dispossessed for
any cause, or in the event of Owner obtaining possession of the demised
premises, by reason of the violation by Tenant of any of the covenants and
conditions of this lease, or otherwise.

         19. FEES AND EXPENSES. If Tenant shall default in the observance or
performance of any term or covenant on Tenant's part to be observed or performed
under, or by virtue of, any of the terms or provisions in any article of this
lease, after notice, if required, and upon expiration of any applicable grace
period, if any, (except in an emergency), then, unless otherwise provided
elsewhere in this lease, Owner may immediately, or at any time thereafter and
without notice, perform the obligation of Tenant thereunder. If Owner, in
connection with the foregoing, or in connection with any default by Tenant in
the covenant to pay rent hereunder, makes any expenditures or incurs any
obligations for the payment of money, including but not limited to reasonable
attorneys' fees, in instituting, prosecuting or defending any action or
proceeding, and prevails in any such action or proceeding, then Tenant will
reimburse Owner for such sums so paid, or obligations incurred, with interest
and costs. The foregoing expenses incurred by reason of Tenant's default shall
be deemed to be additional rent hereunder, and shall be paid by Tenant to Owner
within ten (10) days of rendition of any bill or statement to Tenant therefore.
If Tenant's lease term shall have expired at the time of making of such
expenditures or incurring of such obligations, such sums shall be recoverable by
Owner, as damages.

         20. BUILDING ALTERATIONS AND MANAGEMENT. Owner shall have the right at
any time without the same constituting an eviction and without incurring
liability to Tenant therefore, to change the arrangement and/or location of
public entrances, passageways, doors, doorways, corridors, elevators, stairs,
toilets or other public parts of the building, and to change the name, number or
designation by which the building may be known. There shall be no allowance to
Tenant for diminution of rental value and no liability on the part of Owner by
reason of inconvenience, annoyance or injury to business arising from Owner or
other Tenants making any repairs in the building or any such alterations,
additions and improvements. Furthermore, Tenant shall not have any claim against
Owner by reason of Owner's imposition of such controls of the manner of access
to the building by Tenant's social or business visitors as the Owner may deem
necessary for the security of the building and its occupants.

         21. NO REPRESENTATIONS OWNER. Neither Owner nor Owner's agents have
made any representations or promises with respect to the physical condition of
the building, the land upon which it is erected or the demised premises, the
rents, leases, expenses of operation or any other matter or thing affecting or
related to the demised premises, except as herein expressly set forth, and no
rights, easements or licenses are acquired by Tenant by implication or

                                      -10-
<PAGE>

otherwise, except as expressly set forth in the provisions of this lease. Tenant
has inspected the building and the demised premises and is thoroughly acquainted
with their condition and agrees to take the same "as-is", and acknowledges that
the taking of possession of the demised premises by Tenant shall be conclusive
evidence that the said premises and the building of which the same form a part
were in good and satisfactory condition at the time such possession was so
taken, except as to latent defects. All understandings and agreements heretofore
made between the parties hereto are merged in this contract, which alone fully
and completely expresses the agreement between Owner and Tenant, and any
executory agreement hereafter made shall be ineffective to change, modify,
discharge or effect an abandonment of it in whole or in part, unless such
executory agreement is in writing and signed by the party against whom
enforcement of the change, modification, discharge or abandonment is sought.

         22. END OF TERM. Upon the expiration or other termination of the term
of this lease, Tenant shall quit and surrender to Owner the demised premises,
"broom-clean", in good order and condition, ordinary wear and damages which
Tenant is not required to repair as provided elsewhere in this lease excepted,
and Tenant shall remove all its property. Tenant's obligation to observe or
perform this covenant shall survive the expiration or other termination of this
lease. If the last day of the term of this lease or any renewal thereof, falls
on Sunday, this lease shall expire at noon on the preceding Saturday, unless it
be a legal holiday, in which case it shall expire at noon on the preceding
business day.

         23. QUIET ENJOYMENT. Owner covenants and agrees with Tenant that upon
Tenant paying the rent and additional rent and observing and performing all the
terms, covenants and conditions, on Tenant's part to be observed and performed,
Tenant may peaceably and quietly enjoy the premises hereby demised, subject,
nevertheless, to the terms and conditions of this lease including, but not
limited to, Article 31 hereof, and to the ground leases, underlying leases and
mortgages hereinbefore mentioned.

         24. FAILURE TO GIVE POSSESSION. If Owner is unable to give possession
of the demised premises on the date of the commencement of the term hereof
because of the holding-over or retention of possession of any Tenant,
undertenant or occupants, or if the demised premises are located in a building
being constructed, because such building has not been sufficiently completed to
make the demised premises ready for occupancy, or because of the fact that a
certificate of occupancy has not been procured, or for any other reason, Owner
shall not be subject to any liability for failure to give possession on said
date and the validity of the lease shall not be impaired under such
circumstances, nor shall the same be construed in any way to extend the term of
this lease, but the rent payable hereunder shall be abated (provided Tenant is
not responsible for Owner's inability to obtain possession or complete
construction) until after Owner shall have given Tenant written notice that the
Owner is able to deliver possession in condition required by this lease. If
permission is given to Tenant to enter into possession of the demises premises,
or to occupy premises other than the demised premises, prior to the date
specified as the commencement of the term of this lease, Tenant covenants and
agrees that such possession and/or occupancy shall be deemed to be under all the
terms, covenants, conditions and provisions of this lease, except the obligation
to pay the fixed annual rent set forth in the preamble to this lease. The
provisions of this article are intended to constitute "an express provision to
the contrary" within the meaning of Section 223-a of the New York Real Property
Law.

                                      -11-
<PAGE>

         25. NO WAIVER. The failure of Owner to seek redress for violation of,
or to insist upon the strict performance of, any covenant or condition of this
lease or of any of the Rules or Regulations, set forth or hereafter adopted by
Owner, shall not prevent a subsequent act which would have originally
constituted a violation from having all the force and effect of an original
violation. The receipt by Owner of rent and/or additional rent with knowledge of
the breach of any covenant of this lease shall not be deemed a waiver of such
breach, and no provision of this lease shall be deemed to have been waived by
Owner unless such waiver be in writing signed by Owner. No payment by Tenant or
receipt by Owner of a lesser amount than the monthly rent herein stipulated
shall be deemed to be other than on account of the earliest stipulated rent, nor
shall any endorsement or statement of any check or any letter accompanying any
check or payment as rent be deemed an accord and satisfaction, and Owner may
accept such check or payment without prejudice to Owner's right to recover the
balance of such rent or pursue any other remedy in this lease provided. No act
or thing done by Owner or Owner's agents during the term hereby demised shall be
deemed an acceptance of a surrender of the demised premises, and no agreement to
accept such surrender shall be valid unless in writing signed by Owner. No
employee of Owner or Owner's agent shall have any power to accept the keys of
said premises prior to the termination of the lease, and the delivery of keys to
any such agent or employee shall not operate as a termination of the lease or a
surrender of the demised premises.

         26. WAIVER OF TRIAL BY JURY. It is mutually agreed by and between Owner
and Tenant that the respective parties hereto shall, and they hereby do, waive
trial by jury in any action proceeding or counterclaim brought by either of the
parties hereto against the other (except for personal injury or property damage)
on any matters whatsoever arising out of, or in any way connected with, this
lease, the relationship of Owner and Tenant, Tenant's use of, or occupancy of,
the demised premises, and any emergency statutory or any other statutory remedy.
It is further mutually agreed that in the event Owner commences any proceeding
or action for possession, including a summary proceeding for possession of the
demised premises, Tenant will not interpose any counterclaim of whatever nature
or description in any such proceeding, including a counterclaim under Article 4,
except for statutory mandatory counterclaims.

         27. INABILITY TO PERFORM. This lease and the obligation of Tenant to
pay rent hereunder and perform all of the other covenants and agreements
hereunder on part of Tenant to be performed shall in no way be affected,
impaired or excused because Owner is unable to fulfill any of its obligations
under this lease, or to supply, or is delayed in supplying, any service
expressly or impliedly to be supplied, or is unable to make, or is delayed in
making, any repair, additions, alterations, or decorations, or is unable to
supply, or is delayed in supplying, any equipment, fixtures, or other materials,
if Owner is prevented or delayed from so doing by reason of strike or labor
troubles or any cause whatsoever including, but not limited to, government
preemption or restrictions, or by reason of any rule, order or regulation of any
department or subdivision thereof of any government agency, or by reason of the
conditions which have been or are affected, either directly or indirectly, by
war or other emergency.

         28. BILLS AND NOTICES. Except as otherwise in this lease provided, any
notice, statement, demand or other communication required or permitted to be
given, rendered or made by either party to the other, pursuant to this lease or
pursuant to any applicable law or requirement of public authority, shall be in
writing (whether or not so stated elsewhere in this lease) and shall be deemed
to have been properly given, rendered or made, if sent by registered or

                                      -12-
<PAGE>

certified mail (express mail, if available), return receipt requested, or by
courier guaranteeing overnight delivery and furnishing a receipt in evidence
thereof, addressed to the other party at the address hereinabove set forth
(except that after the date specified as the commencement of the term of this
lease, Tenant's address, unless Tenant shall give notice to the contrary, shall
be the building), and shall be deemed to have been given, rendered or made (a)
on the date delivered, if delivered to Tenant personally, (b) on the date
delivered, if delivered by overnight courier or (c) on the date which is two (2)
days after being mailed. Either party may, by notice as aforesaid, designate a
different address or addresses for notices, statements, demand or other
communications intended for it. Notices given by Owner's managing agent shall be
deemed a valid notice if addressed and set in accordance with the provisions of
this Article. At Owner's option, notices and bills to Tenant may be sent by hand
delivery.

         29. SERVICES PROVIDED BY OWNER. As long as Tenant is not in default
under any of the covenants of this lease beyond the applicable grace period
provided in this lease for the curing of such defaults, Owner shall provide: (a)
necessary elevator facilities on business days from 8 a.m. to 6 p.m. and have
one elevator subject to call at all other times; (b) heat to the demised
premises when and as required by law, on business days from 8 a.m. to 6 p.m.;
(c) water for ordinary lavatory purposes, but if Tenant uses or consumes water
for any other purposes or in unusual quantities (of which fact Owner shall be
the sole judge), Owner may install a water meter at Tenant's expense, which
Tenant shall thereafter maintain at Tenant's expense in good working order and
repair, to register such water consumption, and Tenant shall pay for water
consumed as shown on said meter as additional rent as and when bills are
rendered; (d) said premises are to be kept clean by Tenant, it shall be done at
Tenant's sole expense, in a manner reasonably satisfactory to Owner, and no one
other than persons approved by Owner shall be permitted to enter said premises
or the building of which they are a part for such purpose. Tenant shall pay
Owner the cost of removal of any of Tenant's refuse and rubbish from the
building; (e) if the demised premises are serviced by Owner's air
conditioning/cooling and ventilating system, air conditioning/cooling will be
furnished to Tenant from May 15th through September 30th on business days
(Mondays through Fridays, holidays excepted) from 8:00 a.m. to 6:00 p.m., and
ventilation will be furnished on business days during the aforesaid hours except
when air conditioning/cooling is being furnished as aforesaid. If Tenant
requires air conditioning/cooling or ventilation for more extended hours on
Saturdays, Sundays or on holidays, as defined under Owner's contract with the
applicable Operating Engineers contract, Owner will furnish the same at Tenant's
expense. RIDER to be added in respect to rates and conditions for such
additional service; (f) Owner reserves the right to stop services of the
heating, elevators, plumbing, air-conditioning, electric, power systems or
cleaning or other services, if any, when necessary by reason of accident, or for
repairs, alterations, replacements or improvements necessary or desirable in the
judgment of Owner, for as long as may be reasonably required by reason thereof.
If the building of which the demised premises are a part supplies manually
operated elevator service, Owner at any time may substitute automatic control
elevator service and proceed diligently with alterations necessary therefor
without in any way affecting this lease or the obligations of Tenant hereunder.

         30. CAPTIONS. The Captions 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 provisions thereof.

                                      -13-
<PAGE>

         31. DEFINITIONS. The term "office", or "offices", wherever used in this
lease, shall not be construed to mean premises used as a store or stores, for
the sale or display, at any time, of goods, wares or merchandise, of any kind,
or as a restaurant, shop, booth, bootblack or other stand, barber shop, or for
other similar purposes, or for manufacturing. The term "Owner" means a landlord
or lessor, and as used in this lease means only the owner, or the mortgagee in
possession for the time being, of the land and building (or the owner of a lease
of the building or of the land and building) of which the demised premises form
a part, so that in the event of any sale or sales or conveyance, assignment or
transfer of said land and building, or of said lease, or in the event of a lease
of said building, or of the land and building, the said Owner shall be, and
hereby is, entirely freed and relieved of all covenants and obligations of Owner
hereunder, and it shall be deemed and construed without further agreement
between the parties or their successors in interest, or between the parties and
the purchaser, at any such sale, or the said lessee of the building, or of the
land and building, that the purchaser, grantee, assignee or transferee or the
lessee of the building has assumed and agreed to carry out any and all covenants
and obligations of Owner, hereunder. The words "re-enter" and "re-entry" as used
in this lease are not restricted to their technical legal meaning. The term
"business days" as used in this lease shall exclude Saturdays, Sundays and all
days as observed by the State or Federal Government as legal holidays and those
designated as holidays by the applicable building service union employees
service contract, or by the applicable Operating Engineers contract with respect
to HVAC service. Wherever it is expressly provided in this lease that consent
shall not be unreasonably withheld, such consent shall not be unreasonably
delayed.

         32. ADJACENT EXCAVATION-SHORING. If an excavation shall be made upon
land adjacent to the demised premises, or shall be authorized to be made, Tenant
shall afford to the person causing or authorized to cause such excavation, a
license to enter upon the demised premises for the purpose of doing such work as
said person shall deem necessary to preserve the wall or the building, of which
demised premises form a part, from injury or damage, and to support the same by
proper foundations, without any claim for damages or indemnity against Owner, or
diminution or abatement of rent.

         33. RULES AND REGULATIONS. Tenant and Tenant's servants, employees,
agents, visitors, and licensees shall observe faithfully, and comply strictly
with, the Rules and Regulations and such other and further reasonable Rules and
Regulations as Owner and Owner's agents may from time to time adopt. Notice of
any additional Rules or Regulations shall be given in such manner as Owner may
elect. In case Tenant disputes the reasonableness of any additional Rules or
Regulations hereafter made or adopted by Owner or Owner's agents, the parties
hereto agree to submit the question of the reasonableness of such Rules or
Regulations for decision to the New York office of the American Arbitration
Association, whose determination shall be final and conclusive upon the parties
hereto. The right to dispute the reasonableness of any additional Rules or
Regulations upon Tenant's part shall be deemed waived unless the same shall be
asserted by service of a notice, in writing, upon Owner, within fifteen (15)
days after the giving of notice thereof. Nothing in this lease contained shall
be construed to impose upon Owner any duty or obligation to enforce the Rules
and Regulations or terms, covenants or conditions in any other lease, as against
any other tenant, and Owner shall not be liable to Tenant for violation of the
same by any other Tenant, its servants, employees, agents, visitors or
licensees.

                                      -14-
<PAGE>

         34. SECURITY. Tenant has deposited with Owner (a) cash or a Letter of
Credit in the amount of $360,000.00 for the Temporary Space (the "Temporary
Space Security Deposit") and (b) Letter of Credit in the amount of $198,500.00
for the Long Term Space (the "Long Term Space Security Deposit") as security for
the faithful performance and observance by Tenant of the terms, provisions and
conditions of this lease; it is agreed that in the event Tenant defaults in
respect of any of the terms, provisions and conditions of this lease, including,
but not limited to, the payment of rent and additional rent, Owner may use,
apply or retain the whole or any part of the security so deposited to the extent
required for the payment of any rent and additional rent, or any other sum as to
which Tenant is in default, or for any sum which Owner may expend or may be
required to expend by reason of Tenant's default in respect of any of the terms,
covenants and conditions of this lease, including but not limited to, any
damages or deficiency in the re-letting of the demised premises, whether such
damages or deficiency accrued before or after summary proceedings or other
re-entry by Owner. In the case of every such use, application or retention,
Tenant shall, within five (5) days after demand, pay to Owner the sum so used,
applied or retained which shall be added to the security deposit so that the
same shall be replenished to its former amount. In the event that Tenant shall
fully and faithfully comply with all of the terms, provisions, covenants and
conditions of this lease, the security shall be returned to Tenant after the
date fixed as the end of the lease and after delivery of entire possession of
the demised premises to Owner. In the event of a sale of the land and building,
or leasing of the building, of which the demised premises form a part, Owner
shall have the right to transfer the security to the vendee or lessee, and Owner
shall thereupon be released by Tenant from all liability for the return of such
security; and Tenant agrees to look to the new Owner solely for the return of
said security, and it is agreed that the provisions hereof shall apply to every
transfer or assignment made of the security to a new Owner. Tenant further
covenants that it will not assign or encumber, or attempt to assign or encumber,
the monies deposited herein as security, and that neither Owner nor its
successors or assigns shall be bound by any such assignment, encumbrance,
attempted assignment or attempted encumbrance.

         35. ESTOPPEL CERTIFICATE. Tenant, at any time, and from time to time,
upon at least ten (10) days prior notice by Owner, shall execute, acknowledge
and deliver to Owner, and/or to any other person, firm or corporation specified
by Owner, a statement certifying that this lease is unmodified and in full force
and effect (or, if there have been modifications, that the same is in full force
and effect as modified and stating the modifications), stating the dates to
which the rent and additional rent have been paid, and stating whether or not
there exists any default by Owner under this lease, and, if so, specifying each
such default and such other information as shall be required of Tenant.

         36. SUCCESSORS AND ASSIGNS. The covenants, conditions and agreements
contained in this lease shall bind and inure to the benefit of Owner and Tenant
and their respective heirs, distributees, executors, administrators, successors,
and except as otherwise provided in this lease, their assigns. Tenant shall look
only to Owner's estate and interest in the land and building, for the
satisfaction of Tenant's remedies for the collection of a judgment (or other
judicial process) against Owner in the event of any default by Owner hereunder,
and no other property or assets of such Owner (or any partner, member, officer
or director thereof, disclosed or undisclosed), shall be subject to levy,
execution or other enforcement procedure for the satisfaction of Tenant's
remedies under, or with respect to, this lease, the relationship of Owner and
Tenant hereunder, or Tenant's use and occupancy of the demised premises.

                                      -15-
<PAGE>

         37. THE DEMISED PREMISES.

                  37.1 At the commencement of the term of this Lease (the
"Commencement Date") the demised premises shall consist of 202,000 rentable
square feet (said square footage being mutually agreed upon by Owner and
Tenant). The locations within the Building that comprise the demised premises,
and the agreed upon square footages thereof, are identified on Schedule I
("Schedule I") attached hereto and made a part hereof. In addition to the space
provided for on Schedule I, provided Tenant occupies same as of the Commencement
Date, Tenant shall lease the West Space on the Third Floor of the Building
consisting of 20,000 rentable square feet (said square footage being mutually
agreed upon by Owner and Tenant), at the monthly Base Rent of $15,000 per month
plus additional rent as provided for in this Lease, subject to each of Owner and
Tenant having the right to terminate such lease of the West Space on the Third
Floor on not less than thirty (30) days prior written notice given to the other
party to this Lease, such right to terminate to take effect no earlier than six
(6) months from the Commencement Date.

                  37.2 No later than twenty-four (24) months, and no sooner than
six (6) months unless otherwise mutually agreed in writing between the parties,
from the first day of the calendar month immediately subsequent to the calendar
month during which the Commencement Date occurs, upon not less than ninety (90)
days prior written notice given by Tenant to Owner, the Long Term Space
(hereinafter defined) may be reduced (the "Reduction") at Tenant's option to a
premises identified by Tenant (as more particularly provided for in the
immediately succeeding sentence) which is a portion of or all of the second
(2nd) floor, fifth (5th) floor and sixth (6th) floor portions of the demised
premises labeled Long Term Space on Schedule I ("Long Term Space"), provided the
Long Term Space as reduced by the Reduction shall encompass not less than one
and one-half (1 1/2) floors of the Long Term Space and not more than two and
one-half (2 1/2) floors of Long Term Space. Each East Space and each West Space
of the Long Term Space as identified on Schedule I shall be deemed to be
one-half (1/2) of a floor. Tenant shall have a period of one hundred eighty
(180) days from the Commencement Date (the "Reduction Identification Period") to
identify by written notice given to Owner the specific portions of the second
(2nd), fifth (5th) and sixth (6th) floors of the demised premises which shall
comprise the demised premises as it shall be reduced (if it is to be reduced).
To the extent additional space not specified on Schedule I is vacant or
otherwise available for leasing on the second (2nd), fourth (4th) and fifth
(5th) floors of the Building between the Commencement Date and the Reduction
Identification Date, such additional space may be added to Long Term Space at
Tenant's option at rental rates then applicable to Long Term Space and shall be
subject to the Reduction. The space on Schedule I labeled Temporary Space
("Temporary Space") shall be relinquished by the Tenant no later than 24 months
after the Commencement Date; Tenant shall have the right to relinquish the
Temporary Space in parts during said 24 months provided no less than one-half
(1/2) floor is relinquished at any given time. In order to determine the
rentable square footage of the demised premises, the demised premises shall be
measured in accordance with Real Estate Board of New York, Inc. standards for
measurement of office space, provided the loss factor shall not exceed twelve
percent (12%) of the net usable measurement (the "Measurement Standard").
Tenant's right to reduce space is subject to space being configured in a manner
so that, in Owner's reasonable judgment, they are self-contained rentable units,
which have independent access to common areas, including core restrooms and
elevators.

                                      -16-
<PAGE>

                  37.3 The fifth (5th) floor west portion of the Building ("Five
West") is presently under lease (the "5 West Lease") to a third party tenant for
a term scheduled to expire on October 31, 2011 (the "5 West Expiration Date").
Owner agrees not to extend the term of the 5 West Lease. Tenant shall have the
period through and including April 30, 2011 to elect (the "5 West Election") to
exchange, or incorporated into the Long Term Space pursuant to the size
restriction set forth in Section 37.2 (collectively, the
"Exchange/Incorporation,") any portion of the Building located on the second
(2nd) floor which is a portion of the demised premises on the 5 West Expiration
Date for any portion of 5 West, or the fourth (4th) floor if available, subject
to the size restrictions set forth in Section 37.2, the Exchange/Incorporation
to occur on November 1, 2011. Anything to the contrary contained in the
immediately preceding sentence notwithstanding, if the 5 West Lease expires or
terminates for any reason prior to October 31, 2011, Owner will notify Tenant of
any such expiration or termination, and Tenant shall have thirty (30) days after
receiving such notice from Owner to elect to occupy such premises, or space on
the fourth (4th) floor if available, at the rental rate then being paid by the
Tenant. In addition, at such time as Tenant has the right to exchange space for,
or incorporate, 5 West space, Tenant shall also have the right to add basement
level space of 2,500 rentable feet to the demised premises, which space shall be
mutually agreed upon by the parties, having direct access to the freight
elevator, measured by the Measurement Standard, at a rental rate equal to fair
market value for basement level warehousing space without office space or
parking as determined by mutual agreement of the parties but failing such
agreement to be promptly determined by an arbitrator appointed by the Real
Estate Board of New York, Inc.

                  37.4 Tenant shall be responsible for turning over the
Temporary Space and any portion of the Long Term Space, as per the Reduction, in
broom clean condition, free and clear of all tenancies, and shall be responsible
for the removal of all machinery, equipment, fixtures, and debris in such space.
If Tenant shall not relinquish the Temporary Space as per this Section 37.4
within eighteen (18) months of the Commencement Date, the Base Rent for the
Temporary Space shall be increased to $17.00 per square foot, with all
additional rent provisions of this Lease remaining applicable. If Tenant shall
not relinquish the Temporary Space as per this Section 37.4 within twenty-four
(24) months of the Commencement Date, Tenant shall be deemed a holdover tenant
and Base Rent for the Temporary Space shall be calculated as more particularly
provided for in Article 64 of this Lease, with all other additional rent
provisions and remedies of the Owner through this Lease remaining applicable.

         38. TERM OF THE LEASE. Lease Year 1 shall include any partial calendar
month from the Commencement Date through the end of such calendar month and the
succeeding twelve (12) calendar months. Lease Year 2 and all subsequent Lease
Years shall be the succeeding twelve (12) calendar month periods. The initial
term of this Lease shall commence (the "Commencement Date") on the date that SMP
Real Estate LLC transfers fee title to the Building to Owner. The term of this
Lease shall run through the end of Lease Year 10 (the "Expiration Date").

         39. BASIC ANNUAL RENT.

                  39.1 The base annual rent (the "Base Rent") payable for the
demised premises commencing on the Commencement Date shall be the sum of Two
Million Five Hundred Sixty-Two Thousand Dollars ($2,562,000.00), the calculation

                                      -17-
<PAGE>

of which is set forth on Schedule I, payable in monthly installments of Two
Hundred Thirteen Thousand Five Hundred Dollars ($213,500.00). In addition,
pursuant to the terms of Section 37.1 Tenant shall pay Owner the monthly Base
Rent relating to West Space on the Third Floor of the Building.

                  39.2 Anything to the contrary contained in Section 39.1 of
this Lease notwithstanding, upon the date which the square footage of the
demised premises is reduced in accordance with Section 37.2 of this Lease, Base
Rent per annum shall be the product of the number of square feet of the demised
premises measured by the Measurement Standard multiplied by Seventeen Dollars
($17.00) plus any annual increases in rent as described in Section 39.3.1
payable in equal monthly installments. Anything to the contrary contained in
this Section 39.2 notwithstanding, the rent for basement level space shall be
determined in accordance with Section 37.3 of this Lease.

         39.3

                  39.3.1 Anything to the contrary contained in Sections 39.1 and
39.2 of this Lease notwithstanding, for each Lease Year after Lease Year 1 an
additional three percent (3%) of the Base Rent for the previous Lease Year shall
be added to Base Rent. If Tenant exercises the first renewal option provided for
in Article 61 of this Lease the addition to Lease Year 10 Base Rent shall be ten
percent (10%) instead of three percent (3%) for the first Lease Year of the
renewal term and thereafter shall be three percent (3%) for each subsequent
Lease Year of the first renewal term. If Tenant exercises the second renewal
option provided for in Article 61 of this Lease the addition to the Base Rent of
the final Lease Year of the first renewal term shall be five percent (5%)
instead of three percent (3%) for the first year of the second renewal term and
thereafter shall be three percent (3%) for each subsequent Lease Year of the
second renewal term. The increases to Base Rent provided for in this Section
39.3 shall be cumulative.

                  39.3.2 Anything to the contrary contained above in this
Article 39 notwithstanding, if Tenant exercises the third or fourth renewal
options provided for in Article 61 of this Lease, the Base Rent for the subject
renewal terms shall be "Market Value Rent." The term "Market Value Rent" shall
mean the annual fair market rental value of the demised premises as of the
Determination Date (as hereinafter defined), but in no event less than the Base
Rent payable pursuant to Article 39 of this Lease by Tenant in the twelve-month
period immediately prior to the expiration date of the preceding term of this
Lease. In addition, commencing on the first day of the subject renewal term,
Tenant shall pay, as additional rent, in addition to the escalation payments
provided for under this Lease, such other types of escalation payments which
Owner shall be then charging tenants under other leases, or shall be then
requiring in other offers for leases, in the Building. Anything to the contrary
contained in this Article 61 notwithstanding, the base year for determination of
"such other escalation payments" referred to in the immediately preceding
sentence shall be the first year of the subject renewal term. For purposes
hereof, the "Determination Date" shall mean the date which shall occur nine (9)
months prior to the subject expiration date.

         The initial determination of Market Value Rent shall be made by Owner.
Owner shall give notice (the "MVR Notice") to Tenant of Owner's initial
determination of the Market Value Rent within thirty (30) days following the

                                      -18-
<PAGE>

Determination Date. Such initial determination of Market Value Rent shall be
final and binding in fixing the Market Value Rent, unless, within thirty (30)
days after Owner shall have given MVR Notice to Tenant, Owner shall receive a
notice from Tenant (the "MVR Objection Notice"): (i) advising Owner that Tenant
disagrees with the initial determination of Market Value Rent set forth in the
MVR Notice, and (ii) proposing a specific alternative Market Value Rent, which
shall have been determined in good faith by Tenant. If Owner and Tenant shall
fail to agree upon the Market Value Rent within thirty (30) days after Owner
shall have received the MVR Objection Notice, then Owner and Tenant each shall
give notice to the other setting forth the name and address of an arbitrator
designated by the party giving such notice. If either party shall fail to give
notice of such designation within ten (10) days, then the first arbitrator
chosen shall make the determination alone. If two arbitrators shall have been
designated, such two arbitrators shall, within twenty (20) days following the
designation of the second arbitrator, make their determinations of Market Value
Rent in writing and give notice thereof to each other and to Owner and Tenant.
Such two arbitrators shall have twenty (20) days after the receipt of notice of
each other's determinations to confer with each other and to attempt to reach
agreement as to the determination of Market Value Rent. The arbitrators shall
take into account in any such determination the base years set forth in this
Lease, which shall continue throughout the remainder of the renewal terms of
this Lease. If such two arbitrators shall concur as to the determination of the
Market Value Rent, such concurrence shall be final and binding upon Owner and
Tenant. If such two arbitrators shall fail to concur by the end of said twenty
(20) day period, then such two arbitrators shall forthwith designate a third
arbitrator. If the two arbitrators shall fail to agree upon the designation of
such third arbitrator within ten (10) days, then either party may apply to the
American Arbitration Association or the Real Estate Board of New York, Inc. or
any successor thereto having jurisdiction for the designation of such
arbitrator. All arbitrators shall be real estate appraisers who shall have had
at least ten (10) years continuous experience in the business of appraising real
estate for purposes of determining Market Value Rent in the Borough of
Manhattan, City of New York and/or Long Island City, New York. The third
arbitrator shall conduct such hearings and investigations as he may deem
appropriate and shall, within thirty (30) days after his designation, choose one
of the determinations of the two arbitrators originally selected by the parties,
and that choice by the third arbitrator shall be binding upon Owner and Tenant.
Each party shall pay its own counsel fees and expenses, if any, in connection
with any arbitration under this Article 61, including the expenses and fees of
any arbitrator selected by it in accordance with the provisions of this Article,
and the parties shall share equally all other expenses and fees of any such
arbitration. The determination rendered in accordance with the provisions of
this Section 39.3.2 shall be final and binding in fixing the Market Value Rent.
The arbitrators shall not have the power to add to, modify or change any of the
provisions of this Lease.

         If for any reason the Market Value Rent shall not have been determined
prior to the commencement of the subject renewal term, then, until the Base Rent
shall have been finally determined, the Base Rent and all recurring additional
rent payable for and during the subject renewal term shall be equal to the Base
Rent and recurring additional rent paid in the immediately preceding term of
this Lease. Upon final determination of the Market Value Rent, an appropriate
adjustment to the Base Rent shall be made reflecting such final determination,
and Owner or Tenant, as the case may be, shall refund or pay to the other any
overpayment or deficiency, as the case may be, in the payment of Base Rent and
recurring additional rent from the commencement of the subject renewal term to
the date of such final determination.

                                      -19-
<PAGE>

                  39.4 Additional rent shall consist of all other sums of money
other than Base Rent due and payable by Tenant to Owner pursuant to the terms of
this Lease. Base Rent and additional rent may hereinafter be referred to as
"Rent" or "rent."

                  39.5 Owner shall have the same remedies in the event of
Tenant's default in the payment of additional rent as a default in the payment
of Base Rent.

         40. REAL ESTATE TAX ESCALATION.

                  40.1 Definitions: For the purposes of this Article 40:

                  40.1.1 "Taxes" shall mean the aggregate of the following items
assessed, levied, confirmed or imposed at any time by any taxing or other
authority, on, against, or in respect of, or which may be or become a lien upon,
the Building and/or the land upon which the Building is located: (a) real estate
taxes; (b) assessments (including, without limitation, assessments for public
improvements or benefits, whether or not commenced or completed during the term
of this Lease); (c) water charges; (d) sewer rents; (e) vault taxes; (f) any
other tax, levy, impost, charge or assessment, however designated; and (g) any
tax, levy, impost, charge or assessment, however designated, general, special,
ordinary or extraordinary, foreseen or unforeseen, levied, assessed or imposed
by any taxing or other authority, against or with respect to such land and/or
Building, the occupancy thereof, or the rents or profits therefrom or the
collection thereof, to the extent that the same shall be in substitution of or
in lieu of all or any portion of any item set forth herein, or in lieu of any
addition or increase in any item or any portion thereof set forth herein.
Notwithstanding the foregoing, Real Estate Taxes shall not include (a) any
inheritance, estate, succession, transfer, gift, franchise or capital stock tax;
(b) any income taxes arising out of or related to ownership and operation of
income-producing real estate; (c) any excise taxes imposed upon Owner based upon
gross or net rentals or other income received by it; or (d) assessments for
improvements completed prior to the Commencement Date.

                  40.1.2 "Base Tax Year" shall mean the target assessment as of
the date of this Lease for the fiscal year commencing July 1, 2007 and ending
June 30, 2008.

                  40.1.3 "Base Tax" shall mean the amount of Taxes, as finally
determined, payable by Owner for the Base Tax Year.

                  40.1.4 "Tax Year" shall mean each twelve (12) month period
falling wholly or partly within the term of this Lease and commencing on the
first day next succeeding the Base Tax Year or any anniversary of said date.

                  40.1.5 "Tenant's Proportionate Share" shall mean, the number
of gross square feet included in the demised premises at any given time divided
by the number of gross square feet included in the entire Building, each such
footage as measured by the Measurement Standard.

                                      -20-
<PAGE>

                  40.1.6 Owner shall take advantage of all programs which reduce
or freeze real estate tax assessments in connection with capital improvements
made to the Building.

                  40.2 If the Taxes for any Tax Year shall be greater than the
Base Tax (the amount of such excess being hereinafter referred to as the "Tax
Excess"), Tenant shall pay Owner as additional rent for such Tax Year, in
addition to any other additional rent required under this Lease, an amount equal
to Tenant's Proportionate Share of such Tax Excess (such amount of additional
rent being hereinafter referred to as the "Tax Payment"). The Tax Payment shall
be prorated, if necessary, for the first and final Tax Years. Tenant shall pay
the Tax Payment based on the Taxes (which, to the extent necessary, may be
estimated by Owner in its sole discretion) as initially assessed, levied or
imposed, subject to an adjustment, if any.

                  40.3 Before or after the beginning of each Tax Year, Owner
shall submit to Tenant a written statement (hereinafter referred to as the "Tax
Statement") with respect to such Tax Year, which Tax Statement shall set forth
the following: (a) the Tax Year covered by the Tax Statement; (b) the Base Tax;
(c) the Taxes (which, to the extent necessary, may be estimated by Owner in its
sole discretion) for the Tax Year covered by the Tax Statement; (d) the Tax
Excess; and (e) a computation of Tenant's Proportionate Share of the Tax Excess
(the Tax Payment) for the Tax Year covered by the Tax Statement and the amount
of the equal monthly installments thereof.

                  40.4 After Owner has submitted to Tenant the Tax Statement
with respect to any Tax Year, Tenant shall pay Owner, as additional rent for
such Tax Year, the Tax Payment shown on such Tax Statement as due Owner for such
Tax Year, in equal monthly installments, in advance, on the first day of each
and every month, together with the monthly installments of fixed rent,
commencing with the installment of fixed rent next due after the date of
submission of such Tax Statement following the Base Tax Year. Each installment
of such Tax Payment due shall be in an amount equal to one-twelfth (1/12th) of
such Tax Payment.

                  40.5 If a Tax Statement showing a Tax Payment due Owner for
any Tax Year is submitted by Owner (who will use best efforts to have Tax
Statements available to Tenant at the commencement of the Tax Year in respect of
which such Tax Statement is rendered), and after the time when one or more
installments thereof would have otherwise been due and payable had such Tax
Statement been submitted to Tenant at or prior to the commencement of such Tax
Year, Tenant shall pay Owner, as additional rent, within twenty (20) days after
the submission of such Tax Statement, an amount equal to the total of all the
monthly installments that are unpaid and due for the period elapsed prior to the
first day of the month next succeeding the month during which such Tax Statement
is submitted. Such amount due shall be equal to the product obtained by
multiplying the Tax Payment due for such Tax Year by a fraction, the denominator
of which shall be twelve (12), and the numerator of which shall be the number of
months of such Tax Year elapsed prior to the first day of the month next
succeeding the month during which such Tax Statement is submitted. Appropriate
credit, if any, against such amount due shall be given in accordance with the
provisions of Paragraph 40.6 hereof.

                  40.6 Until submission by Owner to Tenant of the Tax Statement
for the second and each subsequent Tax Year, Tenant shall continue to pay Owner,
as additional rent, on the first day of each and every month of the then current

                                      -21-
<PAGE>

Tax Year until the first day of the month next succeeding the month during which
such Tax Statement is submitted, the monthly installment of the Tax Payment for
the Tax Year immediately preceding such current Tax Year. The total amount of
such monthly payments paid during such current Tax Year shall be credited
towards the Tax Payment due Owner for such current Tax Year or towards the
amount due Owner pursuant to the provisions of Paragraph 40.5 hereof, and
appropriate adjustment, as of the end of the month during which such Tax
Statement is submitted, shall be made between Owner and Tenant.

                  40.7 If during the term of this Lease, the Taxes (or any
portion thereof) for any Tax Year shall be payable, in full or in quarterly or
other installments, on any date or dates other than as required on the date
hereof, the Tax Payment due Owner hereunder for such Tax Year shall be due and
payable in full within twenty (20) days after the submission by Owner to Tenant
of a statement therefor.

                  40.8 If the Base Tax is reduced as a result of a final
determination of any appropriate proceeding, settlement or otherwise, then the
Base Tax, as finally determined, shall be regarded as the Base Tax, and the Tax
Payment theretofore paid or payable by Tenant hereunder with respect to any Tax
Year shall be adjusted on the basis of such reduction. In such event, Tenant
shall pay Owner, as additional rent, within ten (10) days after receipt of a
written statement from Owner setting forth the amount and basis of such
adjustment, any deficiency between the amount of such Tax Payment as theretofore
computed and the amount thereof due as a result of such adjustment. If Owner
shall receive a refund of Taxes for any Tax Year during which Tenant has paid a
Tax Payment, as a result of a final determination of any proceeding, settlement
or otherwise, then the proceeds of such refund, less reasonable attorneys' fees
and all other fees, costs and expenses incurred in securing the same, shall be
applied and allocated to the period for which such refund was obtained, and
Owner shall either pay Tenant Tenant's Proportionate Share of such net amount
allocated to said period or, at Owner's sole option, credit the amount thereof
against any amount then or thereafter becoming due to Owner under the provisions
of this Lease or otherwise. Tenant's Proportionate Share of such net amount
shall be limited to the amount of additional rent paid by Tenant to Owner for
such period pursuant to this Article 39 on the basis of the initial assessment
prior to such reduction.

                  40.9 Owner shall be under no obligation to contest the Taxes
for any Tax Year or to refrain from contesting the same, and may settle any such
contest on such terms as Owner in its sole discretion shall consider proper.

                  40.10 If the first day of the term of this Lease is not the
first day of a Tax Year, or if the final day of the term of this Lease is not
the final day of a Tax Year, then the Tax Payment due as additional rent
hereunder for such first or final Tax Year shall be equal to the product
obtained by multiplying the Tax Payment for such Tax Year, calculated in
accordance with the provisions of this section, by a fraction, the denominator
of which shall be twelve (12), and the numerator of which shall be the number of
months commencing in such first or final Tax Year. If a Tax Statement is
submitted to Tenant at or after the expiration or termination of this Lease,
Tenant shall pay Owner the Tax Payment due within twenty (20) days after such

                                      -22-
<PAGE>

submission.

                  40.11 Anything to the contrary contained in this Article 40
notwithstanding, the additional rent for each Tax Year under this Article 40
shall be limited to one and one-half percent (1 1/2%) of the Base Rent for the
immediately preceding Lease Year, provided such increases shall be cumulative.

         41.  FUEL COST ESCALATION.

                  41.1 Definitions: For the purposes of this Article 41:

                  41.1.1 "Fuel" shall mean # 4 Oil.

                  41.1.2 "Base Fuel Year" shall mean calendar year 2008.

                  41.1.3 "Base Fuel Cost" shall mean the cost of Fuel utilized
to operate the central heating system of the Building.

                  41.1.4 "Fuel Year" shall mean each twelve (12) month period
falling wholly or partly within the term of this Lease and commencing on the
first day next succeeding the Base Fuel Year or any anniversary of said date.

                  41.1.5 "Fuel Cost" shall mean the cost of Fuel utilized to
operate the central heating system of the Building.

                  41.1.6 "Tenant's Proportionate Share" shall mean the number of
square feet included in the demised premises (weighted average over the calendar
year as applicable) at any given time divided by the number of square feet
included in the Building, each such square footage determined by the Measurement
Standard.

                  41.2 If the Fuel Cost for any Fuel Year shall be greater than
the Base Fuel Cost (the amount of such excess being hereinafter referred to as
the "Fuel Excess"), Tenant shall pay Owner as additional rent for such Fuel
Year, in addition to any other additional rent required under this Lease, an
amount equal to Tenant's Proportionate Share of such Fuel Excess (such amount of
additional rent being hereinafter referred to as the "Fuel Payment"). The Fuel
Payment shall be prorated, if necessary, for the first and final Fuel Years.

                  41.3 Before or after the beginning of each Fuel Year, Owner
shall submit to Tenant a written statement (hereinafter referred to as the "Fuel
Statement") with respect to such Fuel Year, which Fuel Statement shall set forth
the following: (a) the Fuel Year covered by the Fuel Statement; (b) the Base
Fuel Cost; (c) the Fuel Cost (which, to the extent necessary, may be estimated
by Owner in its sole discretion) for the Fuel Year covered by the Fuel
Statement; (d) the Fuel Excess; and (e) a computation of Tenant's Proportionate
Share of the Fuel Excess (the Fuel Payment) for the Fuel Year covered by the
Fuel Statement and the amount of the equal monthly installments thereof.

                  41.4 After Owner has submitted to Tenant the Fuel Statement
with respect to any Fuel Year, Tenant shall pay Owner, as additional rent for
such Fuel Year, the Fuel Payment shown on such Fuel Statement as due Owner for
such Fuel Year, in equal monthly installments, in advance, on the first day of
each

                                      -23-
<PAGE>

and every month, together with the monthly installments of fixed rent,
commencing with the installment of fixed rent next due after the date of
submission of such Fuel Statement following the Base Fuel Year. Each installment
of such Fuel Payment due shall be in an amount equal to one-twelfth (1/12th) of
such Fuel Payment.

                  41.5 If a Fuel Statement showing a Fuel Payment due Owner for
any Fuel Year is submitted by Owner (who will use best efforts to have Fuel
Statements available to Tenant at the commencement of the Fuel Year in respect
of which such Fuel Statement is rendered), and after the time when one or more
installments thereof would have otherwise been due and payable had such Fuel
Statement been submitted to Tenant at or prior to the commencement of such Fuel
Year, Tenant shall pay Owner, as additional rent, within twenty (20) days after
the submission of such Fuel Statement, an amount equal to the total of all the
monthly installments that are unpaid and due for the period elapsed prior to the
first day of the month next succeeding the month during which such Fuel
Statement is submitted. Such amount due shall be equal to the product obtained
by multiplying the Fuel Payment due for such Fuel Year by a fraction, the
denominator of which shall be twelve (12), and the numerator of which shall be
the number of months of such Fuel Year elapsed prior to the first day of the
month next succeeding the month during which such Fuel Statement is submitted.
Appropriate credit, if any, against such amount due shall be given in accordance
with the provisions of Paragraph 41.6 hereof.

                  41.6 Until submission by Owner to Tenant of the Fuel Statement
for the second and each subsequent Fuel Year, Tenant shall continue to pay
Owner, as additional rent, on the first day of each and every month of the then
current Fuel Year until the first day of the month next succeeding the month
during which such Fuel Statement is submitted, the monthly installment of the
Fuel Payment for the Fuel Year immediately preceding such current Fuel Year. The
total amount of such monthly payments paid during such current Fuel Year shall
be credited towards the Fuel Payment due Owner for such current Fuel Year or
towards the amount due Owner pursuant to the provisions of Paragraph 41.5
hereof, and appropriate adjustment, as of the end of the month during which such
Fuel Statement is submitted, shall be made between Owner and Tenant.

                  41.7 If the first day of the term of this Lease is not the
first day of a Fuel Year, or if the final day of the term of this Lease is not
the final day of a Fuel Year, then the Fuel Payment due as additional rent
hereunder for such first or final Fuel Year shall be equal to the product
obtained by multiplying the Fuel Payment for such Fuel Year, calculated in
accordance with the provisions of this section, by a fraction, the denominator
of which shall be twelve (12), and the numerator of which shall be the number of
months commencing in such first or final Fuel Year. If a Fuel Statement is
submitted to Tenant at or after the expiration or termination of this Lease,
Tenant shall pay Owner the Fuel Payment due within twenty (20) days after such
submission.

         42. TENANT'S WORK.

                  42.1 Tenant, at Tenant's sole cost and expense, and in a good
and workmanlike manner, shall make and complete work (the "Tenant's Work") in
and to the demised premises as has or shall be reduced in accordance with
Article 37 of this Lease. With respect to Tenant's Work, Tenant shall, subject
to Owner's reasonable approval, such approval not to be unreasonably withheld or

                                      -24-
<PAGE>

delayed, have the right to designate a general contractor or construction
manager, which general contractor or construction manager may be Tenant or an
affiliate of Tenant.

                  42.2 Tenant, at Tenant's sole cost and expense, shall cause to
be prepared a preliminary plan or set of plans (which said plan or set of plans,
as the case may be, are hereinafter called the "plan") which shall contain
information relating to the construction of the demised premises and the
engineering in connection therewith and any effect on building systems. The plan
shall be submitted by Tenant to Owner for Owner's approval, which approval shall
not be unreasonably withheld or delayed and shall be based solely upon (i) the
effect of Tenant's Work upon the Building engineering specifications and
systems, and (ii) the effect of Tenant's Work on the structure of the Building
(i.e., Tenant's Work must not be structural in nature except that installation
of chaseways/vertical risers having a diameter of not more than twelve inches
between contiguous floors of the demised premises shall be deemed not to be
structural in nature). If Owner shall disapprove the plan, Owner shall set forth
its reasons for such disapproval and itemize those portions of the plan so
disapproved. In the event Owner disapproves the plan, Tenant shall make such
changes to the plan as Owner shall reasonably require and shall thereupon
resubmit the revised plan for Owner's approval in accordance with this Section.
Owner shall not be deemed unreasonable in withholding its consent to the extent
that the plan prepared by Tenant pursuant hereto involves the performance of
work or the installation of materials or equipment which do not equal or exceed
the standard of quality adopted by Owner for the Building. In connection with
the review of Tenant's plan, Owner shall not be entitled to any fee or overhead
payment, but Tenant shall reimburse Owner for its actual, out-of-pocket expense
within thirty (30) days after being invoiced therefor. In accordance with the
plan and such other plans and specifications as may be approved by Owner,
Tenant, at Tenant's expense, will make and complete Tenant's Work. Tenant shall
have the right to revise the plan, provided Tenant has received Owner's prior
written consent, such consent not to be unreasonably withheld or delayed, to
such revision. Final plans will be delivered to Owner as they become available,
for Owner's approval, such approval not to be unreasonably withheld or delayed,
pursuant to this Section. Anything to the contrary contained in this Section
42.2 notwithstanding, Tenant shall be permitted to, and shall only be required
to, complete Tenant's build-out to the extent of plans filed with and approved
by the New York City Buildings Department.

                  42.3 The following conditions shall also apply to Tenant's
Work:

                           (a) Tenant, at Tenant's expense, shall file all
required architectural, mechanical and electrical drawings and obtain all
necessary permits, and shall furnish and perform all engineering and engineering
drawings in connection with Tenant's Work.

                           (b) Prior to Tenant's occupancy of any portion of the
demised premises to which Tenant's Work has been performed for the conduct of
Tenant's business, Tenant, at its expense, shall procure a temporary certificate
of completion for such portion or shall receive written advice from such local
authority permitting lawful occupancy pending issuance of a certificate of
completion. Owner agrees to cooperate with Tenant in obtaining all permits and
certificates pursuant to this Section, and, if requested, Owner agrees to join
in applications therefor.

                                      -25-
<PAGE>

                           (c) Tenant shall cause all work to be performed by a
licensed and insured contractor subject to all terms and conditions set forth in
this Lease.

                  42.4 Owner agrees to make a contribution of Two Million One
Hundred Fifty Thousand Dollars ($2,150,000.00) ("Owner's Contribution") to be
paid by Owner to Tenant as progress payments on a monthly basis upon Tenant
providing invoices for the subject work from the subject contractors. Any
request by Tenant for payment of Owner's Contribution shall be accompanied by
(i) copies of invoices from contractors performing the portion of Tenant's Work;
(ii) a certificate executed by Tenant and Tenant's architect that such portion
of Tenant's Work (other than soft costs) has been completed in a manner
satisfactory to such parties; and (iii) a certificate and partial lien waiver
from the contractor performing such work (other than soft costs) that such
contractor has been paid in full for all prior invoices of such contractors that
have been submitted to Owner for payment. The final payment ten percent (10%)
retainage shall be conditioned upon Owner's receiving (a) final waivers of lien
from all contractors and subcontractors, and (b) an architect's certification
that all Tenant Work has been completed in compliance in all material respects
with all applicable laws. Any portion of Owner's Contribution which is not
applied to the cost of Tenant's Work (including soft costs such as, but without
limitation, legal, architectural, engineering and expeditor fees and
disbursements and the costs of permits and filing fees) shall be a rent credit
to be applied to Base Rent next coming due under this Lease. Anything to the
contrary contained in this Section 42.4 notwithstanding and regardless of the
state of completion of Tenant's installation, it is a material provision of this
Lease that Tenant shall have received the Owner's Contribution by direct payment
or by rent credits no later than the third (3rd) anniversary of the Commencement
Date, and to the extent the entire Owner's Contribution except for ten percent
(10%) retainage if applicable has not been paid prior to the third (3rd)
anniversary of the Commencement Date, Owner shall pay Tenant the portion of
Owner's Contribution not yet paid on the third (3rd) anniversary of the
Commencement Date, time being deemed of the essence.

                  42.5 Tenant may submit the plan to Owner in stages and perform
Tenant's Work in stages, as determined in Tenant's sole discretion.

         43. "AS-IS" CONDITION. Tenant has examined and inspected the demised
premises, and agrees to accept said demised premises in their condition existing
on the date hereof. Owner shall not be obligated to perform any work within the
demised premises unless otherwise expressly provided herein. Owner shall use
commercially reasonable standards to maintain the exterior of the Building and
sidewalks to industry standard.

         44. INDEMNITY, LIABILITY INSURANCE.

                  44.1 The provisions of this Article 44 shall be in addition to
and not in limitation of the provisions of Article 8 hereof.

                  44.2 Tenant shall indemnify and hold Owner and Owner's
managing agent harmless from and against any and all claims by or on behalf of
any person, firm or corporation, arising from any work or thing whatsoever done
by or on behalf of Tenant in or about the demised premises, and shall indemnify

                                      -26-
<PAGE>

and hold Owner and Owner's managing agent harmless from and against any and all
claims arising from any breach or default on the part of Tenant in the
performance of any covenant or agreement on the part of Tenant to be performed
or observed pursuant to the terms of this Lease, or arising from any act or
negligence of Tenant, or any of its agents, contractors, servants, employees or
licensees, and from and against all costs, losses, injuries, expenses and
liabilities, including, without limitation, reasonably attorneys' fees,
resulting from any such claim or action or proceeding brought thereon; and in
the event that any action or proceeding is brought against Owner or Owner's
managing agent by reason of any such claim, Tenant, upon notice from Owner,
shall resist or defend, at Tenant's sole cost and expense, such action or
proceeding by counsel satisfactory to Owner. Owner will not unreasonably
withhold its approval of said counsel.

                  44.3 Tenant shall, at its sole cost and expense, provide on or
before the date of this Lease and keep in force at all times during the term of
this Lease, for the benefit of Owner, Owner's managing agent and Tenant, a
policy of commercial general liability insurance naming Owner and Owner's
managing agent and such other parties as Owner may reasonably, from time to
time, designate, as additional insureds against any liability whatsoever
occasioned by accident on or about the demised premises or any appurtenances
thereto, and an endorsement to such policy whereby the insurer shall insure
Tenant's indemnity obligation pursuant to Articles 8 and 44 hereof. Such policy
shall be written by good and solvent United States insurance companies doing and
licensed to do business in the State of New York and reasonably satisfactory to
Owner, and the limits of liability thereunder shall not be less than the amount
of Three Million Dollars ($3,000,000) in respect of any one person, in the
amount of Two Million Dollars ($2,000,000) in respect of any one accident, and
in the amount of Two Million Dollars ($2,000,000) in respect of property damage.
Prior to the commencement of the term of this Lease, Tenant shall deliver to
Owner a certificate evidencing such policy and endorsement. Such policy or
certificate shall require the insurer to give at least thirty (30) days written
notice to Owner prior to the cancellation, expiration or modification thereof.
Such insurance may be carried under a blanket policy covering the demised
premises and other locations, if any, of Tenant, provided such blanket policy
conforms in amounts and all other respects to the provisions of this Lease. Each
insurance policy maintained by Tenant pursuant to this Paragraph 44.2 shall
expressly provide that no act or omission of Tenant shall affect the validity of
such policy, its enforceability by Owner or Owner's managing agent, or the
continued responsibility thereunder, as regards Owner and Owner's managing
agent, of the insurer. Tenant shall also insure all of Tenant's alterations,
equipment, and fixtures in a commercially reasonable amount.

                  44.4. Owner shall maintain All Risk insurance in respect of
the Building and other improvements on the Land normally covered by such
insurance for the benefit of Owner and any other parties Owner may at any time
and from time to time designate, and shall maintain rent insurance. The All Risk
insurance will be in an amount not less than the amount sufficient to avoid the
effect of the co-insurance provisions of the applicable policy or policies.

         45.  TENANT'S ALTERATIONS.

                  45.1 In accordance with the provisions of Article 3 hereof,
Tenant shall not make, or permit the making of, any alterations, additions,
installations or improvements in or to the Building or any part thereof except
with the prior written consent of Owner. Owner acknowledges that Tenant may
desire to make certain interior alterations, additions, installations and
improvements in and to the demised premises including Tenant's Work and Owner

                                      -27-
<PAGE>

agrees not to unreasonably withhold or delay its consent provided that such
changes do not affect the structural integrity of or utility systems in the
Building and do not materially or adversely affect the value of the demised
premises. Anything to the contrary contained in the two (2) immediately
preceding sentences, Tenant shall not require the consent of Owner to make
interior alterations, additions and improvements in and to the demised premises
except to the extent such consent is required under the terms of Article 42 of
this Lease. Tenant shall have the right to erect exterior signs subject to
Owner's approval as to size, location and content which approval shall not be
unreasonably withheld or delayed. All alterations, additions, installations and
improvements made pursuant to Article 3 hereof and this Article 45 shall be made
(a) at Tenant's sole cost and expense, (b) in accordance with the plans approved
by Owner which approval shall not be unreasonably withheld or delayed; (c) by
persons or firms reasonably acceptable to Owner, and (d) must comply in all
material respects with all laws and ordinances with the Owner retaining the
right to correct or remove such alterations, additions, installations, and
improvements at the Tenant's expense if they not meet such criteria and (e) at
such times and in such manner as Owner may reasonably designate, and shall
otherwise be made in accordance with the terms and conditions set forth in
Article 3 hereof and this Article 45. All materials and equipment incorporated
in the demised premises pursuant to Article 3 hereof and this Article 45 shall
be of first quality and shall not be subject to any lien, encumbrance, chattel
mortgage, security agreement or title retention whatsoever. To the extent
exterior signage is permitted for tenants of the Building, Tenant's right to
exterior signage shall provide for surface coverage not less than Tenant's pro
rata share based upon Tenant's leased space.

                  45.2 Anything to the contrary contained in Articles 3, 42 and
45 of this Lease notwithstanding, Owner's consent or approval, as otherwise
provided for in said Articles of this Lease, shall not be required for any
alterations by Tenant costing a cumulative amount of $100,000.00 or less.

         46.  ELECTRICITY.

                  46.1 Owner shall supply electricity to the demised premises in
accordance with the provisions of this Article 46. For the purposes of this
Article 46, Owner and Tenant agree that the term "Cost per Kilowatt hour" shall
mean the total cost for electricity incurred by Owner to service the demised
premises, as measured by the meter servicing that portion of the Building in
which the demised premises are located, during a particular time period
(including all applicable surcharges, demand charges, energy charges, fuel
adjustment charges, time of day charges, Fuel Cost and other sums payable in
respect thereof) divided by the total kilowatt hours purchased by Owner during
such period.

                  46.2 Electricity shall be supplied by Owner to service the
demised premises and Tenant shall pay to Owner, as additional rent, an amount
determined by applying the Cost per Kilowatt hour to Tenant's consumption of and
demand for electricity within the demised premises as recorded on the submeter
or submeters servicing the demised premises. Owner shall supply a minimum of
five (5) watts per rentable square foot of electrical power connected load
(exclusive of base Building systems) to the demised premises. Where more than
one meter measures the electric service to Tenant, the electric service rendered
through each meter shall be computed and billed separately in accordance with
the provisions hereinafter set forth. Bills for the electricity additional rent

                                      -28-
<PAGE>

shall be rendered to Tenant at such time as Owner may elect. The costs incurred
by Owner for meter readings for those meters and sub-meters that measure the
electric service supplied to Tenant, and the costs incurred by Owner in the
maintenance of such meters and sub-meters, shall be solely Tenant's
responsibility. Owner shall have the right, but not the obligation to directly
meter the demised premises. If Owner directly meters the demised premises,
Tenant shall pay its utility costs directly to the utility provider.

                  46.3 Tenant shall furnish and install, at Tenant's sole cost
and expense, all original and replacement lighting tubes, lamps, bulbs, fixtures
and ballasts as Tenant may require in the demised premises.

         47. BUILDING RENOVATIONS.

                  47.1 Promptly after the Commencement Date, Owner shall
undertake a renovation of the Property at its sole cost and expense, except
where noted herein, which will last approximately 18 to 24 months. Owner shall
provide Tenant with (i) a monthly report regarding the progress of the
renovations (including interim drawings, if applicable) commencing on the
Commencement Date and (ii) its final drawings within 90 days of the Commencement
Date. The renovation shall be conducted to minimize at all times the
inconvenience of the Tenant. As part of this renovation, Owner shall provide the
following:

                           (i) Replace all existing windows, with openable,
insulated glass "office style" windows, with full window areas restored; unless
"Blank Windows or ventilation louvers" are required as per Building Department
Code in elevator shafts, etc.;

                           (ii) Expand and improve current lobby; lobby shall be
no less than 2 times current size, which is approximately 550 sq. ft.;

                           (iii) Replace and/or renovate existing passenger
elevator, which shall be to a standard for new elevators; Owner will use its
best efforts to add a second passenger elevator to the Building, which shall be
to a standard for new elevators and shall construct a second entrance and lobby
for such elevator if the second passenger elevator is not in the general
vicinity of the existing passenger elevator; Tenant shall have non- exclusive
use of all of the Building's elevators during its tenancy; If Owner is unable to
add a second passenger elevator to the Building due to the cost of such
construction being in excess of $350,000, then Owner shall (a) convert the
freight elevator on the Western portion of the Building to a dual purpose
passenger/freight elevator (the primary purpose would be passenger) with the
interior being substantially similar to the replaced or renovated passenger
elevator, (b) construct a second entrance and lobby to the Building in close
proximity to the Western dual purpose elevator; and (c) reduce Tenant's square
footage on the sixth floor (and the fifth floor if Tenant leases the western
portion of such floor) by the amount of square footage necessary to create a
reception/lobby area for the Tenant on the western portion of the sixth (and
fifth, if applicable) floors in comparable size to the Tenant's current
reception area on the 6th floor;

                           (iv) Automate the freight elevators, with the intent
that at least one of them can be dual (passenger/freight) purpose;

                                      -29-
<PAGE>

                           (v) Provide 24 hours per day, 7 days per week access
to the Building protected by accessible video surveillance of the front door
with remote access controls situated in Tenant's premises, and individual
card/code access to the front door;

                           (vi) Provide a general reception area with personnel,
building access control; services to be provided from 8 a.m. to 5 p.m., 5 days a
week; receptionist services shall be chargeable to the Tenant as per Tenant's
Proportionate Share; and

                           (vii) Improve the exterior of Building, to be
reasonably comparable to rendering attached hereto as Exhibit C; As Tenant will
have Building naming rights pursuant to Section 68 hereof, Tenant will have
exclusive signage rights on the canopy and on either the roof or top floor
facade of the Building; Tenant agrees that other tenants who lease at least one
full floor of the Building shall have the right to place their signage on the
ground level facade or on the side facade of the Building, provided that the
signage of any other tenants is not more prominent than Tenant's signage; any
signage shall be at a location and size to be mutually agreed between the
parties; Tenant shall solely determine the specific design of its signage. Owner
shall ensure that all other tenant signage will adhere to content and design
standards commensurate with a first class commercial building.

                  47.2 (i) The parties agree that Tenant shall be allowed to
operate the existing cafeteria on the Third Floor of the Building (the "Existing
Cafeteria") at Tenant's expense. Tenant will make the Existing Cafeteria
available for on-site consumption purposes only to other tenants (and their
invitees) of the Building, and Owner shall ensure that its lease agreements with
other tenants of the Building shall contain a provision to indicate that the
Existing Cafeteria shall be for on-site consumption purposes only. So long as
Tenant is paying Owner the monthly Base Rent relating to the East Space on the
Third Floor of the Building (which such space includes the Existing Cafeteria)
pursuant to the terms of Section 37.1 and in the amount set forth on Schedule I,
Tenant shall be obligated to pay the operator of the Existing Cafeteria any
financial support required by such operator, but Tenant shall not be required to
pay Owner any additional amounts in connection with the operation of the
Existing Cafeteria. Notwithstanding the foregoing, upon such time, if any, that
Tenant is no longer paying Owner the monthly Base Rent relating to the East
Space on the Third Floor of the Building, Tenant shall be required to pay Owner
rent at $12.50 per square foot (for the approximately 3,000 square feet of the
Existing Cafeteria) in connection with the operation of the Existing Cafeteria
(but shall not be required to pay Tenant's Proportionate Share of any common
area costs for the Existing Cafeteria) and shall be obligated to pay the
operator of the Existing Cafeteria any financial support required by such
operator. To the extent that Tenant decides, at its option, to discontinue
Tenant's financial support of the Existing Cafeteria, Tenant shall provide Owner
with thirty (30) days prior written notice of such event, and Owner shall not be
required to replace the Existing Cafeteria with another eatery as provided
below.

                           (ii) Notwithstanding anything to the contrary herein,
Owner shall have the right, at its discretion and at any time, to replace the
Existing Cafeteria with an eatery (the "New Cafeteria") offering comparable or
superior food services anywhere within the Building, subject to the following
provisions:

         o     the size of the New Cafeteria shall not be below 2,500 square
               feet;

                                      -30-
<PAGE>

         o     the New Cafeteria shall only serve Building tenants and their
               guests and not the general public;
         o     all construction and related costs of the New Cafeteria shall be
               at Owner's expense; and
         o     Tenant shall pay Tenant's Proportionate Share of the cost of
               operating the New Cafeteria (including any reasonable amounts
               paid to the cafeteria operator to subsidize operations).

                  47.3 At the Commencement Date, a specific monetary set aside
in the amount of no less than $5,000,000 in the form of a construction loan or
cash account designated for renovation shall be exhibited to Tenant as evidence
and intent of the financial ability of Owner to complete the building
renovations outlined in Section 47.1, which Tenant shall rely on as Owner's
guarantee to complete all renovations outlined herein. In the event the Owner
fails to perform the renovations, in whole or part, as outlined in Section 47.1,
then Owner and Tenant agree, for each and every such failure, to have all claims
adjudicated solely through binding arbitration under the rules and auspices of
the American Arbitration Society, with both parties to share in all arbitration
fees equally.

         48. RESTRICTION ON USES. So long as Tenant is a tenant of the Building,
Owner shall not enter into any lease, or permit occupancy of the Building,
providing for any of the uses set forth on Schedule II attached to and made a
part of this Lease.

         49. LIMITATION OF LIABILITY. Whether Owner or any successor in interest
be an individual, joint venture, tenancy in common, co-partnership,
unincorporated association or other unincorporated aggregate of individuals or a
corporation (all of which are referred to herein, individually and collectively,
as the "Owner"), then, anything elsewhere to the contrary notwithstanding, if at
any time Owner shall be or shall become liable to Tenant under the terms of this
Lease or otherwise, such liability of Owner shall be limited to Owner's interest
in the demised premises and no other property or assets of Owner shall be
subject to levy, execution or other enforcement procedure for the satisfaction
of Tenant's claims.

         50. SAVING PROVISION. If any provision of this Lease, or its
application to any situation, shall be invalid or unenforceable to any extent,
the remainder of this Lease, or the application thereof to situations other than
those as to which it is invalid or unenforceable, shall not be affected thereby,
and every provision of this Lease shall be valid and enforceable to the fullest
extent permitted by law.

         51. LEASE NOT BINDING UNLESS EXECUTED. Submission by Owner of this
Lease for execution by Tenant shall confer no rights nor impose any obligations
on either party unless and until both Owner and Tenant shall have executed this
Lease and duplicate originals thereof shall have been delivered by each party to
the other.

         52. INTEREST ON LATE PAYMENTS. If Owner shall not have received any
payment due Owner from Tenant under the provisions of this Lease, including,
without limitation, any payment of fixed rent, additional rent or any portion,
installment or adjustment thereof, within ten (10) days of the due date, then
interest shall become due and owing to Owner on such payment from the date when
it was first due, and the amount thereof shall constitute additional rent under

                                      -31-
<PAGE>

the terms of this Lease and shall be collectible as such. The interest shall be
computed at the rate of five percent (5%) per annum over the prime rate of The
Chase Manhattan Bank, N.A., or its successor in interest, then in effect, but in
no event shall such interest be computed at a rate in excess of the maximum
legal rate of interest then chargeable to Tenant in the State of New York. The
payment of interest as provided in this Article 52 shall be without prejudice,
and in addition, to any of Owner's rights and remedies under this Lease or at
law for the default by Tenant in fulfilling the covenant to pay fixed or
additional rent beyond the applicable notice and cure period. Tenant shall pay
an administrative fee of 2% of the payment due for any payment not received by
Owner within ten (10) days after the due date.

         53. SUBORDINATION, NON-DISTURBANCE, AND ATTORNMENT AGREEMENT. Anything
to the contrary contained in this Lease notwithstanding, this Lease shall be
subordinate to any now or hereafter existing ground or underlying lease or
mortgage encumbering the building of which the demised premises forms a part,
and any renewals, modifications, and consolidations thereof, but only if, and
upon the express condition that, the lessor under any such ground or underlying
lease, or the holder of any such mortgage, as the case may be, enters into a
Subordination, Non-Disturbance and Attornment Agreement ("SNDA") with Tenant
which is reasonably satisfactory to the holder of such Mortgage, and Tenant
shall execute such document within fifteen (15) business days of receipt,
provided that such SNDA shall provide the Tenant protection from dispossession
in the event of the foreclosure of any mortgage or termination of any ground or
underlying lease, provided that Tenant is not in default of this Lease beyond
any applicable cure periods.

         54. CONSENTS AND APPROVALS. Wherever in this Lease Owner's consent or
approval is required, if Owner shall delay or refuse such consent or approval,
Tenant in no event shall 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 Owner unreasonably withheld or unreasonably
delayed its consent or approval. Tenant covenants and agrees that Tenant's sole
remedy shall be an action or proceeding for a declaratory judgment.

         55. INTENTIONALLY OMITTED.

         56. ASSIGNMENT AND SUBLETTING.

                  Tenant may sublet all or a portion of the demised premises or
assign this Lease with Owner's prior written consent which shall not be
unreasonably withheld or delayed provided that:

                           (a) Tenant shall furnish Owner with the name and
business address of the proposed subtenant or assignee, a counterpart of the
proposed subleasing or assignment agreement, and reasonably satisfactory
information with respect to the nature and character of the business of the
proposed subtenant or assignee together with current financial information and
references reasonably satisfactory to Owner.

                           (b) In the reasonable judgment of the Owner the
proposed subtenant or assignee is financially responsible with respect to its

                                      -32-
<PAGE>

proposed obligations under the proposed agreement and is of a character and
engaged in a business which is in keeping with the standards of the Building.

                           (c) An executed duplicate original in a form
reasonably satisfactory to Owner for review by Owner's counsel of such
subleasing or assignment agreement shall be delivered to Owner at least thirty
(30) days prior to the effective date thereof. In the event of any assignment,
Tenant will deliver to Owner at least thirty (30) days prior to the effective
date thereof an assumption agreement wherein the assignee agrees to assume all
of the terms, covenants and conditions of this Lease to be performed by Tenant
hereunder and which provides that Tenant named herein and such assignee shall,
after the effective date of such assignment, be jointly and severally liable for
the performance of all of the terms, covenants and conditions of this Lease.

                           (d) Without limiting the terms upon which Tenant may
assign or sublet, Tenant further agrees that it shall not at any time publicly
advertise at a rental rate less than the fixed rent plus any additional rent
then payable hereunder, for assignment or sublease of all or part of the demised
premises (but listing of the demised premises with a broker shall not violate
this section).

                           (e) Tenant shall have no right to assign this Lease
or sublet the same to any existing Tenant or occupant of the building or to any
party who is dealing with or has dealt with Owner or Owner's agent with respect
to space then still available for rent in the Building within the six (6) months
immediately preceding Owner's receipt of Tenant's notice pursuant to Section (h)
of this Article 56.

                           (f) Tenant shall not be in monetary default beyond
the applicable notice and cure period with respect to its obligations under this
Lease and shall have complied and shall comply with each of the provisions in
this Article 56.

                           (g) The consent by Owner to any assignment,
subletting or occupancy shall not in any wise be construed to relieve Tenant
from obtaining the express consent in writing of Owner to any further assignment
or subletting.

                           (h) If Tenant shall desire to assign this Lease or
sublet the demised premises, Tenant shall send Owner written notice thereof at
least thirty (30) days prior to the intended date thereof, which notice shall
contain the terms and conditions of any such proposed assignment or subletting.
Owner shall have the right within thirty (30) days after receipt of Tenant's
notice to cancel this Lease with respect to the portion of the demised premises
to be assigned or sublet. Owner shall notify Tenant in writing of such
cancellation, in which event, and such date as proposed by Tenant shall then be
deemed to be the expiration of the term of this Lease with respect to the
portion of the demised premises to be assigned or sublet subject to all the
provisions hereof relating thereto and Tenant shall be responsible for all
obligations and payments to be made by it accruing prior to such expiration
date. In the event Owner does not recapture under this provision 56(h), Tenant
shall be permitted to make the sublease or assignment, as applicable, subject
only to the terms of provision 56(b). Owner shall not have the right of
cancellation under this provision (h) if the proposed sublease is for a term of
two (2) years or less.

                                      -33-
<PAGE>

                           (i) Intentionally Omitted.

                           (j) Tenant hereby waives any claim against Owner for
money damages which it may have based upon any assertion that Owner has
unreasonably withheld or unreasonably delayed any consent to an assignment or
subletting pursuant to this Article 56. Tenant agrees that its sole remedy shall
be an action or proceeding to enforce such provision or for specific
performance.

                           (k) Tenant shall reimburse Owner within twenty (20)
days after demand for any reasonable costs, fees and expenses that may be
incurred by Owner in connection with such sublease or assignment, including but
not limited to the cost of making investigations as to the acceptability of the
proposed subtenant or assignee and reasonable legal costs incurred in connection
with the granting of any requested consent.

                           (l) No sublease or assignment shall be valid and no
sublessee or assignee shall take possession of the demised premises or any part
thereof, until an executed counterpart of such sublease or assignment has been
delivered to Owner.

                           (m) Each sublease and assignment shall provide that
it is subject and subordinate to this Lease and to matters to which this Lease
is or shall be subordinate, and shall further provide that in the event of
termination, re-entry or dispossession by Owner under this Lease, Owner may, at
its option take over all of the right, title and interest of Tenant, as
sublessor or assignor under such sublease or assignment, and such subtenant or
assignee shall, at Owner's option, attorn to Owner pursuant to the then
executory provisions of such sublease or assignment except that Owner shall not
(i) be liable for any previous act or omission of Tenant under such sublease or
assignment (ii) be subject to any offset not expressly provided in such sublease
or assignment which therefore accrued to such subtenant or assignee against
Tenant or (iii) be bound by any previous modification of such sublease or
assignment (unless previously consented to by Owner) or by any previous
prepayment of more than one month's rent or equivalent assignment consideration.

                           (n) In the case of all subleases and assignments
under this Article 56, Tenant shall and will remain fully liable for the payment
of the fixed rent and any additional rent due or to become due hereunder and for
the performance of al the covenants, agreements, terms, provisions and
conditions contained in this Lease on the part of the Tenant to be performed and
all acts and omissions of any subtenant or assignee or anyone claiming through
or under any subtenant or assignee, which shall be in violation of any of the
obligations of this Lease, shall be deemed to be a violation of Tenant. The
provision of this paragraph shall be waived in the case of an assignment where
the assignee has a net worth which is at least equivalent to Tenant's net worth
as of the date hereof and the Assignee's use of the demised premises is similar
to Tenant's.

         57. INTENTIONALLY OMITTED.

         58. BROKERS. Owner and Tenant represent and warrant that it has dealt
with no broker, finder, agent or any other person in connection with the
negotiation or execution of this Lease or the showing or leasing of the demised
premises except for Greiner-Maltz Company of New York, Inc. ("Broker") and Owner
and Tenant shall indemnify and hold the other harmless from and against any and

                                      -34-
<PAGE>

all liability, cost or expense (including, without limitation, reasonable
attorneys' fees) resulting from any claims of whatsoever nature of any broker,
finder, agent or any other person claiming to have been involved in any manner
whatsoever with the indemnifying party in the leasing of the demised premises,
in the execution of this Lease or in the negotiation thereof. Any and all
commissions due to the Broker, if any, shall be paid by the Tenant.

         59. ENVIRONMENTAL COMPLIANCE.

                           (a) During the Lease term Tenant shall, and shall
cause any and all of its subtenants and/or assignees to, comply with the terms
of this Section 59 and in all material respects with all environmental laws,
ordinances, rules, regulations, requirements, orders and directives, whether now
existing or hereinafter enacted, of all federal, state and local governmental
authorities ("Governmental Authorities") having jurisdiction over the Property
("collectively Environmental Laws"), as they pertain to Tenant's or its
subtenants' and/or assignees' particular use of the demised premises during the
term of the Lease.

                           (b) If a lien is filed by any Governmental Authority
against the building or land it is located upon the Property due to the Tenant's
or its subtenants' and/or assignees' particular use or operation of the Demised
Premise during the term of this Lease in violation of any Environmental Laws,
the Tenant will bond or discharge same within fifteen (15) days after the filing
of such lien.

                           (c) Tenant shall, or shall cause any and all of its
subtenants and/or assignees to, supply Owner with all notices, reports,
correspondence and submissions made by Tenant to any Governmental Authority
which requires submission of any information concerning environmental matters,
or toxic and/or hazardous wastes or substances ("Hazardous Substances") pursuant
to any Environmental Laws due to Tenant's or its subtenants' and/or assignees'
particular use of the demised premises during the term of this Lease. Tenant
shall, and shall cause any and all of its subtenants and/or assignees to, also
supply Owner with all notices, reports, directives, correspondence and other
documentation from any Governmental Authorities to Tenant concerning
environmental matters, or Hazardous Substances, as they pertain to Tenant's or
its subtenants' and/or assignees' particular use of the demised premises during
the term of the Lease.

                           (d) Prior to the Commencement Date of the Lease,
Tenant shall supply to Owner an affidavit of an officer or principal of Tenant
in accordance with the form attached hereto as Exhibit "D" ("Officer's
Affidavit"), setting forth Tenant's Standard Industrial Classification Number
("SIC Number") and a description of the operations and processes Tenant will
undertake at the Property organized in the form of a narrative report, including
a list of Hazardous Substances to be generated, manufactured, refined,
transported, treated, stored, handled or disposed of by Tenant at the demised
premises in quantities that exceed a reportable quantity threshold under
Environmental Laws. Tenant shall not substantially change its use, operations,
quantification, storage and/or processing of Hazardous Substances without
Owner's express prior written approval. For the purposes herein a substantial
change in the Tenant's use, operations and/or processing of Hazardous Substances
is defined as:

                                      -35-
<PAGE>

                           (i) an annual increase of more than 2% in the use or
storage of Hazardous Substances already specified in the attached Officer's
Affidavit of Environmental Compliance or such annual update of such affidavit as
approved by the Owner;

                           (ii) the use or storage of any material quantity of
Hazardous Substance not already specified in the attached Officer's Affidavit of
Environmental Compliance or such annual update of such affidavit as approved by
Owner; or

                           (iii) a change in the method of Tenant's use, storage
or processing of any such Hazardous Substances which would require any material
alteration, modification, addition or change in the Tenant's obligations to
comply with Environmental Laws.

                  Notwithstanding the above provisions, the Tenant shall not be
required to obtain Owner's consent for any alteration, modification, addition or
change in Tenant's or any subtenants' and/or assignees' use, operations,
quantification, storage or processing of Hazardous Substances, which simply
reduces the use or amount of one or more Hazardous Substances generated,
manufactured, refined, transported, treated, stored, handled or disposed of at
the Property. Following commencement of the Lease term, Tenant shall notify
Owner as to any proposed changes in Tenant's SIC Number or use and/or generation
of Hazardous Substances, by way of a supplemental Officer's Affidavit, which
proposed changes shall be subject to Owner's prior written approval. Tenant
shall also supplement and update the Officer's Affidavit on an annual basis at
the beginning of each calendar year during the term of this Lease starting with
2007 and at any other time upon demand by Owner. Tenant warrants and represents
that the SIC Number of Tenant is 3694 and 3714 ("Tenant SIC Number"). Tenant's
and any of its subtenants' and/or assignees' use of the Property for the entire
term of the Lease is restricted to the Tenant SIC Number unless Tenant obtains
the prior written consent from the Owner to any such proposed change.

                  (e) Tenant shall permit Owner and Owner's agents, including
but not limited to, legal counsel and environmental consultants and engineers,
access to the demised premises upon reasonable prior notice, for the purposes of
environmental inspections (to be performed at Owner's sole cost and expense)
during regular business hours, or during other hours, in the event of any
environmental emergency. Tenant shall not restrict Owner and Owner's agents from
access to any part of the demised premises and Tenant shall not impose any
conditions to access. If Owner performs any testing or sampling at the Property
in accordance with the foregoing, Owner shall use all reasonable efforts to
avoid interfering with Tenant's use of the demised premises. Owner agrees that
Tenant and Tenant's agents may at all times accompany Owner and Owner's agents
on any environmental inspection. If any environmental inspection includes
sampling and testing, Owner and Owner's agents will supply Tenant with a copy of
the results of such samples and tests. If such environmental inspection uncovers
a violation of the environmental provisions of this Lease, Tenant shall cure
such default as soon as reasonably practical in the event of an emergency, or
within thirty (30) days following written notice by Owner of such default,
subject to extensions as may be grant by Owner, which extensions shall not be
unreasonably withheld.

                                      -36-
<PAGE>

                  (f) Tenant shall not commence or alter any operation at the
demised premises prior to: (i) obtaining all operating and discharge permits or
written approvals required by any Environmental Laws therefore, including but
not limited to all pollution control permits and pollution discharge permits
from all Governmental Authorities having jurisdiction over Tenant's operation
and (ii) providing copies of such permits or written approvals to Owner.

                  (g) Tenant shall not install any additional storage tanks or
gas lines on the demised premises without the prior written consent of the
Owner.

                  (h) Tenant hereby agrees at its sole cost and expense to
indemnify, defend and save Owner, it successors and assigns, and Owner's
mortgagee or holder of deed of trust affecting the Property, harmless from all
fines, suits, liens, claims and actions of any kind arising out of any spills or
discharges of toxic or Hazardous Substances at the Property, or any violation of
any Environmental Laws, resulting from the Tenant's or its subtenants' and/or
assignees' particular use and operation of the demised premises during the term
of this Lease, except to the extent caused by Owner's negligence or intentional
misconduct, and from all fines, suits, procedures, claims and actions of any
kind arising out of Tenant's or its subtenants' and/or assignees' failure to
provide all information, make all submissions and take all actions required by
any Governmental Authorities concerning environmental compliance matters for
which Tenant is responsible hereunder. The provisions of this Paragraph shall
survive the expiration or sooner termination of this Lease.

         60. OWNER'S INTERESTS. Owner represents and warrants to Tenant that as
of the date hereof, Owner is authorized to execute this Lease and owns and holds
fee title in and to the Building, the demised premises and the land on which the
same are located.

         61. RENEWAL OPTIONS. Provided that Tenant is not in monetary default
beyond any applicable notice and cure period with respect to its obligations
under this Lease, Tenant shall have four (4) successive options to extend the
term of this Lease for an additional period of five (5) years each. Each
extended term shall begin upon the expiration of the then current term of this
Lease upon the same terms and conditions as herein set forth, except as
otherwise set forth immediately below in Sections 39.3.1 and 39.3.2. In the
event that Tenant shall elect to exercise such renewal options, it shall do so
by giving written notice of such intention, to Owner not less than nine (9)
months prior to the expiration of the then current term of this Lease. All the
terms and conditions of this Lease shall apply to the periods by which the term
of this Lease is extended by the exercise of the renewal options. The first
renewal option shall cover Lease Year 11 through Lease Year 15. The second
renewal option shall cover Lease Year 16 through Lease Year 20. The third
renewal option shall cover Lease Year 21 through Lease Year 25. The fourth
renewal option shall cover Lease Year 26 through Lease Year 30. Succeeding
renewal option may not be exercised unless the immediately preceding renewal
option is exercised. Anything to the contrary contained in this Section 61
notwithstanding, for any portion of the demised premises which is 5,000 or more
contiguous square feet which is sublet by Tenant at the time the subject renewal
term commences shall be deleted from the space which shall be renewed, and the
remainder of the demised premises shall be renewed at a rental rate
proportionately reduced due to the deletion of the sublet space from the demised
premises.

                                      -37-
<PAGE>

         62. CONFLICT OF TERMS. In the event of any conflict between any
provision of this Rider and the printed provisions of this Lease, the provisions
of this Rider shall prevail.

         63. CHOICE OF LAW. This Lease shall be governed by the laws of the
State of New York.

         64. END OF TERM.

                           (a) Upon the Expiration Date or sooner termination
space under this Lease or of this lease, Tenant shall quit and surrender the
demised premises to Owner, broom clean, in good order and condition, free of all
leases, subleases, tenancies and occupancies, reasonable wear and tear and
damage by casualty and eminent domain excepted.

                           (b) Tenant agrees that if possession of the demised
premises is not surrendered to Owner within twenty-four (24) hours after the
Expiration Date or sooner termination of the Lease, in addition to any other
rights or remedies Owner may have hereunder or at law, Tenant shall pay to Owner
for each month and for each portion of any month during which Tenant holds over
in the demised premises after the Expiration Date or sooner termination of this
Lease, a sum equal to one and one-half (1 1/2) times the aggregate of that
portion of the Base Rent and Additional Rent which was payable under this Lease
during the last month of the term of this Lease.

                           (c) If, after default on payment of Base Rent, and/or
Additional Rent or violation of any other provisions of this Lease, or upon the
expiration of this Lease, the Tenant moves out or is dispossessed and fails to
remove any removable trade fixtures, machinery, equipment or any other property
of Tenant prior to said default, removal or expiration of Lease, or prior to the
final order for execution of a warrant for possession, then and in that event,
the said fixtures, machinery, equipment and property shall at the election of
the Owner be deemed abandoned by the Tenant and shall become the property of the
Owner. Any damage caused by such removal shall be repaired at the sole expense
of Tenant. If Owner shall not so elect, Owner may remove such fixtures,
machinery, equipment and property from the demised premises and store them at
Tenant's risk and expense. The provisions of this Paragraph shall survive the
expiration or sooner termination of this Lease.

         65. INTENTIONALLY OMITTED.

         66. NOTICES. Wherever any notice or other communication is required or
permitted hereunder, such notice or other communication shall be in writing and
shall be delivered by overnight courier, hand delivery, facsimile, or sent by
U.S. registered or certified mail, return receipt requested, postage prepaid, to
the addresses set out below or at such other addresses as are specified by
written notice delivered in accordance herewith.

OWNER:                      RD Investments LLC
                            55 Fifth Avenue, 15th Floor
                            New York, New York 10003
                            Attention Jeffrey Rosenblum
                            Facsimile:  212-627-9279

                                      -38-
<PAGE>

TENANT:                     Standard Motor Products, Inc.
                            37-18 Northern Boulevard
                            Long Island City, New York 11101
                            Attention: Robert Martin
                            Facsimile:  718-784-3284

         67. SECURITY DEPOSIT.

                  67.1 The Temporary Space Security Deposit shall be held solely
to secure the return to Owner of the Temporary Space in vacant, broom clean
condition and shall be returned to Tenant on or before the second (2nd)
anniversary of the term of this Lease in accordance with Article 34. The form of
security for the Temporary Space Security Deposit may be either in the form of
cash or Letter of Credit at Tenant's option. Owner shall deposit any cash
security in an interest-bearing account and all interest earned thereon shall be
added to and form a part of the Temporary Space Security Deposit. The form of
security for the Long Term Space Security Deposit shall be in the form of a
Letter of Credit.

                  67.2 The Letter of Credit that Tenant shall deliver to Owner
(the "Letter of Credit") shall be a clean, irrevocable, transferable and
unconditional letter of credit (the "Letter of Credit") issued by and drawn upon
a commercial bank or General Electric Capital Corporation (hereinafter referred
to as the "Issuing Bank") which shall be a member bank of the New York
Clearinghouse Association (or, in the alternative, which shall have offices for
banking purposes in the Borough of Manhattan or Long Island City and shall have
a net worth of not less than $100,000,000, with appropriate evidence thereof to
be submitted by Tenant), which Letter of Credit shall: (i) have a term of not
less than one year, (ii) be for the benefit of Owner, (iii) be in the amounts as
more particularly provided for in Articles 34 and 67 of this Lease (i.e., the
Security Deposit Amount), (iv) except as otherwise provided in this Section
67.2, conform and be subject to the most recent revision of the Uniform Customs
and Practice for Documentary Credits, ICC Publication No. 590 (or any revision
thereof or successor thereto), (v) be fully transferable by Owner without any
fees or charges therefor (or, if the Letter of Credit shall provide for the
payment of any transfer fees or charges, the same shall be paid by Tenant as and
when such payment shall be requested by the Issuing Bank), (vi) provide that
Owner shall be entitled to draw upon the Letter of Credit upon presentation to
the Issuing Bank of a sight draft accompanied by Owner's statement that Owner is
then entitled to draw upon the Letter of Credit pursuant to the terms of this
Lease, and (vii) provide that the Letter of Credit shall be deemed automatically
renewed, without amendment, for consecutive periods of one year each year
thereafter during the entire Term of this Lease and for a period of thirty (30)
days thereafter, unless the Issuing Bank shall send notice (the "Non-Renewal
Notice") to Owner by registered mail, return receipt requested, not less than
sixty (60) days next preceding the then expiration date of the Letter of Credit
that the Issuing Bank elects not to renew such Letter of Credit, in which case
Tenant shall furnish Owner with a replacement Letter of Credit (which shall
comply with all of the conditions set forth in the immediately preceding
sentence), in the Security Deposit Amount so that Owner shall have the entire
Security Deposit Amount on hand at all times during the term of this Lease and
for a period of thirty (30) days thereafter. Tenant acknowledges and agrees that
the Letter of Credit shall be delivered to Owner as security for the faithful
performance and observance by Tenant of all of the covenants, agreements, terms,
provisions and conditions of this Lease, and that Owner shall have the right to

                                      -39-
<PAGE>

draw upon the entire Letter of Credit (or a portion thereof) as hereinbefore
described in Article 34 of this Lease. Other than Long Term Space, Tenant may
substitute a Letter of Credit for cash security at Tenant's option throughout
the term of this Lease provided Landlord shall have the entire Security Deposit
Amount on hand at all times during the term of this Lease and for a period of
thirty (30) days thereafter.

         68. BUILDING NAME & SIGNAGE. Owner agrees to name the Building the
Standard Motors Products Building. Tenant will have exclusive signage rights on
the canopy of the main entrance of the Building at a location and size to be
mutually agreed between the parties; Tenant shall solely determine the specific
design of its signage. Tenant shall also have signage rights to the roof or
facade of the Building at a location and size to be mutually agreed between the
parties; as long as Owner's other tenants are leasing at least one full floor of
the Building, such other tenants shall have signage rights to the roof or facade
of the building at a location and size to be mutually agreed between the
parties. Owner will not be obligated to provide Tenant with building naming or
signage rights if Tenant s files for bankruptcy or reduces its square footage to
below one full floor of the Building.

         69. BUILDING CONTAMINANTS. To prevent the contamination, growth, or
deposit of any mold, mildew, bacillus, virus, pollen, or other micro-organism
(collectively, "Biologicals") and the deposit, release or circulation of any
indoor contaminants including emissions from paint, carpet and drapery
treatments, cleaning, maintenance and construction materials and supplies,
pesticides, pressed wood products, insulation, and other materials and products
(collectively with Biologicals, "Contaminants") that could adversely affect the
health, safety or welfare of any tenant, employee, or other occupant of the
Building or their invitees (each, an "Occupant"), Tenant shall, at Tenant's sole
cost and expense, at all times during the term hereof (1) operate the demised
premises in such a manner to reasonably prevent or minimize the accumulation of
stagnant water and moisture in planters, kitchen appliances and vessels,
carpeting, insulation, water coolers, and any other locations where stagnant
water or moisture could accumulate, and (2) otherwise operate the demised
premises to prevent the generation, growth, deposit, release or circulation of
any Contaminants.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                      -40-
<PAGE>

                  IN WITNESS WHEREOF, Owner and Tenant have respectively
executed this Lease as of the day and year first above written.

                                   OWNER:

                                   37-18 NORTHERN BOULEVARD LLC,
                                   a Delaware limited liability company

                                   By: Northern Boulevard Holding JV LLC,
                                       a Delaware limited liability company,
                                       its member

                                   By: RD Northern Equities LLC,
                                       a New York limited liability company,
                                       its managing member

                                   By:    /s/ ASHISH DUA
                                          ---------------
                                   Name:  Ashish Dua
                                   Title: Managing Member

                                   TENANT:

                                   STANDARD MOTOR PRODUCTS, INC,
                                   as Tenant

                                   By:    /s/ ROBERT H. MARTIN
                                          --------------------
                                   Name:  Robert H. Martin
                                   Title: Treasurer

                                      -41-
<PAGE>

<TABLE>
<CAPTION>

                                   Schedule I

                                                                     LONG TERM
                         SQUARE      RENT PER                          SPACE/
 FLOOR      SPACE        FOOTAGE   SQUARE FOOT        BASE RENT     TEMPORARY SPACE*
------------------------------------------------------------------------------------
<S>         <C>         <C>           <C>           <C>             <C>
Basement     Total       43,000        $9.00         $387,000.00     Temporary Space
First        East        23,000        $9.00         $207,000.00     Temporary Space
First        West        20,000        $9.00         $180,000.00     Temporary Space
Second       East        27,000       $17.00         $459,000.00     Long Term
Third        East        23,000        $9.00         $207,000.00     Temporary Space
Fifth        East        23,000       $17.00         $391,000.00     Long Term
Sixth        East        23,000       $17.00         $391,000.00     Long Term
Sixth        West        20,000       $17.00         $340,000.00     Long Term
                        202,000                    $2,562,000.00     *(as of the date of
                                                                       this Lease)

</TABLE>

                                      -42-
<PAGE>

                                   SCHEDULE II

                 USES WHICH REQUIRE THE PRIOR CONSENT OF TENANT

1.       houses of worship

2.       prisons

3.       taxi licensing / taxi insurance offices

4.       funeral establishments

5.       mini-storage

6.       social service agencies that allow public access to assist in providing
         persons with welfare benefits (either educational or financial), assist
         with licensing or expediting services, provide family planning or
         clinic, or provide counseling of any nature

7.       day spas - massage facilities (except shall be permitted if part of a
         gym/health club and occupy not more than 20% of the floor area)

8.       billiard parlors - pool halls

9.       seafood stores

10.      cabarets

11.      manufacturing which falls within Use Group 18

12.      topless bar

13.      adult video/adult book store

14.      consignment store

15.      video tape sales and rentals

16.      military recruitment

17.      religious arts and goods

18.      pornography

19.      operations which can reasonably be expected to create high traffic
         conditions which would significantly impede access to and within the
         Building

                                      -43-
<PAGE>

                             IMPORTANT - PLEASE READ

       RULES AND REGULATIONS ATTACHED TO AND MADE A PART OF THIS LEASE IN
                          ACCORDANCE WITH ARTICLE 33.

                  1. The sidewalks, entrances, driveways, passages, courts,
elevators, vestibules, stairways, corridors or halls shall not be obstructed or
encumbered by Tenant or used for any purpose other than for ingress or egress
from the demised premises, and for delivery of merchandise and equipment in a
prompt and efficient manner using elevators and passageways designated for such
delivery by Owner. There shall not be used in any space, or in the public hall
of the building, either by any tenant or by jobbers or others in the delivery or
receipt of merchandise, any hand trucks, except those equipped with rubber tires
and safeguards. If said premises are situated on the ground floor of the
building, Tenant thereof shall further, at Tenant's expense, keep the sidewalk
and curb in front of said premises clean and free from ice, snow, dirt and
rubbish.

                  2. The water and wash closets and plumbing fixtures shall not
be used for any purposes other than those for which they were designed or
constructed, and no sweepings, rubbish, rags, acids or other substances shall be
deposited therein; and the expense of any breakage, stoppage, or damage
resulting from the violation of this rule shall be borne by the Tenant, whether
or not caused by the Tenant, or its clerks, agents, employees or visitors.

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

                  4. No awnings or other projections shall be attached to the
outside walls of the building without the prior written consent of Owner.

                  5. No sign, advertisement, notice or other lettering shall be
exhibited, inscribed, painted or affixed by Tenant on any part of the outside of
the demised premises or the building, or on the inside of the demised premise if
the same is visible from the outside of the demised premises, without the prior
written consent of Owner, except that the name of Tenant may appear on the
entrance door of the demised premises. In the event of the violation of the
foregoing by Tenant, Owner may remove same without any liability, and may charge
the expense incurred by such removal to Tenant. Interior signs on door and
directory tablet shall be inscribed, painted or affixed for Tenant by Owner at
the expense of Tenant, and shall be of a size, color and style acceptable to
Owner.

                                      -44-
<PAGE>

                  6. Tenant shall not mark, paint, drill into, or in any way
deface, any part of the demised premises or the building of which they form a
part. No boring, cutting or stringing of wires shall be permitted, except with
the prior written consent of Owner, and as Owner may direct. Tenant shall not
lay linoleum, or other similar floor covering, so that the same shall come in
direct contact with the floor of the demised premises, and, if linoleum or other
similar floor covering is desired to be used, an interlining of builder's
deadening felt shall be first affixed to the floor, by a paste or other
material, soluble in water, the use of cement or other similar adhesive material
being expressly prohibited.

                  7. No additional locks or bolts of any kind shall be placed
upon any of the doors or windows by Tenant, nor shall any changes be made in
existing locks or mechanism thereof. Tenant must, upon the termination of his
tenancy, restore to Owner all keys of stores, offices and toilet rooms, either
furnished to, or otherwise procured by, Tenant, and in the event of the loss of
any keys so furnished, Tenant shall pay to Owner the cost thereof.

                  8. Freight, furniture, business equipment, merchandise and
bulky matter of any description shall be delivered to and removed from the
demised premises only on the freight elevators and through the service entrances
and corridors, and only during hours and in a manner approved by Owner. Owner
reserves the right to inspect all freight to be brought into the building and to
exclude from the building all freight which violates any of these Rules and
Regulations of the lease, or which these Rules and Regulations are a part.

                  9. Canvassing, soliciting and peddling in the building is
prohibited and Tenant shall cooperate to prevent the same.

                  10. Owner reserves the right to exclude from the building all
persons who do not present a pass to the building signed by Owner. Owner will
furnish passes to persons for whom Tenant requests same in writing. Tenant shall
be responsible for all persons for whom he requests such pass, and shall be
liable to Owner for all acts of such persons. Tenant shall not have a claim
against Owner by reason of Owner excluding from the building any person who does
not present such pass.

                  11. Owner shall have the right to prohibit any advertising by
Tenant which in Owner's opinion, tends to impair the reputation of the building
or its desirability as a building for offices, and upon written notice from
Owner, Tenant shall refrain from or discontinue such advertising.

                  12. Tenant shall not bring or permit to be brought or kept in
or on the demised premises, any inflammable, combustible, explosive, or
hazardous fluid, material, chemical or substance, or cause or permit any odors
of cooking or other processes, or any unusual or other objectionable odors, to
permeate in, or emanate from, the demised premises.

                  13. If the building contains central air conditioning and
ventilation, Tenant agrees to keep all windows closed at all times and to abide
by all rules and regulations issued by Owner with respect to such services. If
Tenant requires air conditioning or ventilation after the usual hours, Tenant
shall give notice in writing to the building superintendent prior to 3:00 p.m.
in the case of services required on weekdays, and prior to 3:00 p.m. on the day

                                      -45-
<PAGE>

prior in case of after hours service required on weekends or on holidays. Tenant
shall cooperate with Owner in obtaining maximum effectiveness of the cooling
system by lowering and closing venetian blinds and/or drapes and curtains when
the sun's rays fall directly on the windows of the demised premises.

                  14. Tenant shall not move any safe, heavy machinery, heavy
equipment, bulky matter, or fixtures into or out of the building without Owner's
prior written consent. If such safe, machinery, equipment, bulky matter or
fixtures requires special handling, all work in connection therewith shall
comply with the Administrative Code of the City of New York and all other laws
and regulations applicable thereto, and shall be done during such hours as Owner
may designate.

                  15. Refuse and Trash. (1) Compliance by Tenant. Tenant
covenants and agrees, at its sole cost and expense, to comply with all present
and future laws, orders, and regulations, of all state, federal, municipal and
local governments, departments, commissions and boards regarding the collection,
sorting, separation and recycling of waste products, garbage, refuse and trash.
Tenant shall sort and separate such waste products, garbage, refuse and trash
into such categories as provided by law. Each separately sorted category of
waste products, garbage, refuse and trash shall be placed in separate
receptacles reasonably approved by Owner. Such separate receptacles may, at
Owner's option, be removed from the demised premises in accordance with a
collection schedule prescribed by law. Tenant shall remove, or cause to be
removed by a contractor acceptable to Owner, at Owner's sole discretion, such
items as Owner may expressly designate. (2) Owner's Rights in Event of
Noncompliance. Owner has the option to refuse to collect or accept from Tenant
waste products, garbage, refuse or trash (a) that is not separated and sorted as
required by law or (b) which consists of such items as Owner may expressly
designate for Tenant's removal, and to require Tenant to arrange for such
collection at Tenant's sole cost and expense, utilizing a contractor
satisfactory to Owner. Tenant shall pay all costs, expenses, fines, penalties,
or damages that may be imposed on Owner or Tenant by reason of Tenant's failure
to comply with the provisions of this Building Rule 15, and, at Tenant's sole
cost and expense, shall indemnity, defend and hold Owner harmless (including
reasonable legal fees and expenses) from and against any actions, claims and
suits arising from such noncompliance, utilizing counsel reasonably satisfactory
to Owner.

                                      -46-

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