Document:

Exhibit 10.1

Exhibit 10.1

INDEMNIFICATION AGREEMENT

This Indemnification Agreement (the “Agreement”) dated June 25, 2009, effective as of March 11, 2009, by
and between American Reprographics Company, a Delaware corporation (the “Company”), and James F. McNulty (the
“Indemnitee”).

RECITALS

The Company and Indemnitee recognize the increasing difficulty in obtaining liability insurance for directors,
officers and key employees, the significant increases in the cost of such insurance and the general reductions in the
coverage of such insurance. The Company and Indemnitee further recognize the substantial increase in corporate
litigation in general, subjecting directors, officers and key employees to expensive litigation risks at the same time
as the availability and coverage of liability insurance has been severely limited. Indemnitee does not regard the
current protection available as adequate under the present circumstances, and Indemnitee and agents of the Company may
not be willing to continue to serve as agents of the Company without additional protection. The Company desires to
attract and retain the services of highly qualified individuals, such as Indemnitee, and to indemnify its directors,
officers and key employees so as to provide them with the maximum protection permitted by law.

AGREEMENT

In consideration of the mutual promises made in this Agreement, and for other good and valuable consideration,
receipt of which is hereby acknowledged, the Company and Indemnitee hereby agree as follows:

1. Indemnification.

(a) Third Party Proceedings. The Company shall indemnify Indemnitee if Indemnitee is or was a party or is
threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative (other than an action by or in the right of the Company) by reason of the
fact that Indemnitee is or was a director, officer, employee or agent of the Company, or any subsidiary of the Company,
by reason of any action or inaction on the part of Indemnitee while an officer or director or by reason of the fact
that Indemnitee is or was serving at the request of the Company as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys’ fees),
judgments, fines and amounts paid in settlement (if such settlement is approved in advance by the Company, which
approval shall not be unreasonably withheld) actually and reasonably incurred by Indemnitee in connection with such
action, suit or proceeding if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or
not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had no
reasonable cause to believe Indemnitee’s conduct was unlawful. The termination of any action, suit or proceeding by
judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself,
create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to
be in or not opposed to the best interests of the Company, or, with respect to any criminal action or proceeding, that
Indemnitee had reasonable cause to believe that Indemnitee’s conduct was unlawful.

 

1

 

(b) Proceedings By or in the Right of the Company. The Company shall indemnify Indemnitee if Indemnitee
was or is a party or is threatened to be made a party to any threatened, pending or completed action or proceeding by
or in the right of the Company or any subsidiary of the Company to procure a judgment in its favor by reason of the
fact that Indemnitee is or was a director, officer, employee or agent of the Company, or any subsidiary of the Company,
by reason of any action or inaction on the part of Indemnitee while an officer or director or by reason of the fact
that Indemnitee is or was serving at the request of the Company as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys’ fees) and,
to the fullest extent permitted by law, amounts paid in settlement (if such settlement is approved in advance by the
Company, which approval shall not be unreasonably withheld), in each case to the extent actually and reasonably
incurred by Indemnitee in connection with the defense or settlement of such action or suit if Indemnitee acted in good
faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company and
its stockholders, except that no indemnification shall be made in respect of any claim, issue or matter as to which
Indemnitee shall have been finally adjudicated by court order or judgment to be liable to the Company in the
performance of Indemnitee’s duty to the Company and its stockholders unless and only to the extent that the court in
which such action or proceeding is or was pending shall determine upon application that, in view of all the
circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnity for such expenses which such court
shall deem proper.

(c) Mandatory Payment of Expenses. To the extent that Indemnitee has been successful on the merits or
otherwise in defense of any action, suit or proceeding referred to in Section 1(a) or Section 1(b) or the defense of
any claim, issue or matter therein, Indemnitee shall be indemnified against expenses (including attorneys’ fees)
actually and reasonably incurred by Indemnitee in connection therewith.

2. No Employment Rights. Nothing contained in this Agreement is intended to create in Indemnitee any
right to continued employment.

3. Expenses; Indemnification Procedure.

(a) Advancement of Expenses. The Company shall advance all expenses incurred by Indemnitee in connection
with the investigation, defense, settlement or appeal of any civil or criminal action, suit or proceeding referred to
in Section l(a) or Section 1(b) hereof (including amounts actually paid in settlement of any such action, suit or
proceeding). Indemnitee hereby undertakes to repay such amounts advanced only if, and to the extent that, it shall
ultimately be determined that Indemnitee is not entitled to be indemnified by the Company as authorized hereby.

(b) Notice/Cooperation by Indemnitee. Indemnitee shall, as a condition precedent to his or her right to
be indemnified under this Agreement, give the Company notice in writing as soon as practicable of any claim made
against Indemnitee for which indemnification will or could be sought under this Agreement. Notice to the Company shall
be directed to the Chief Executive Officer of the Company and shall be given in accordance with the provisions of
Section 12(d) below. In addition, Indemnitee shall give the Company such information and cooperation as it may
reasonably require and as shall be within Indemnitee’s power.

2

 

2

 

(c) Procedure. Any indemnification and advances provided for in Section 1 and this Section 3 shall be
made no later than twenty (20) days after receipt of the written request of Indemnitee. If a claim under this
Agreement, under any statute, or under any provision of the Company’s Certificate of Incorporation or Bylaws providing
for indemnification, is not paid in full by the Company within twenty (20) days after a written request for payment
thereof has first been received by the Company, Indemnitee may, but need not, at any time thereafter bring an action
against the Company to recover the unpaid amount of the claim and, subject to Section 11 of this Agreement, Indemnitee
shall also be entitled to be paid for the expenses (including attorneys’ fees) of bringing such action. It shall be a
defense to any such action (other than an action brought to enforce a claim for expenses incurred in connection with
any action, suit or proceeding in advance of its final disposition) that Indemnitee has not met the standards of
conduct which make it permissible under applicable law for the Company to indemnify Indemnitee for the amount claimed,
but the burden of proving such defense shall be on the Company and Indemnitee shall be entitled to receive interim
payments of expenses pursuant to Section 3(a) unless and until such defense may be finally adjudicated by court order
or judgment from which no further right of appeal exists. It is the parties’ intention that if the Company contests
Indemnitee’s right to indemnification, the question of Indemnitee’s right to indemnification shall be for the court to
decide, and neither the failure of the Company (including its Board of Directors, any committee or subgroup of the
Board of Directors, independent legal counsel, or its stockholders) to have made a determination that indemnification
of Indemnitee is proper in the circumstances because Indemnitee has met the applicable standard of conduct required by
applicable law, nor an actual determination by the Company (including its Board of Directors, any committee or subgroup
of the Board of Directors, independent legal counsel, or its stockholders) that Indemnitee has not met such applicable
standard of conduct, shall create a presumption that Indemnitee has or has not met the applicable standard of conduct.

(d) Notice to Insurers. If, at the time of the receipt of a notice of a claim pursuant to Section 3(b)
hereof, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of the
commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies.
The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the
Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies.

(e) Selection of Counsel. In the event the Company shall be obligated under Section 3(a) hereof to pay
the expenses of any proceeding against Indemnitee, the Company, if appropriate, shall be entitled to assume the defense
of such proceeding, with counsel approved by Indemnitee, upon the delivery to Indemnitee of written notice of its
election so to do. After delivery of such notice, approval of such counsel by Indemnitee and the retention of such
counsel by the Company, the Company will not be liable to Indemnitee under this Agreement for any fees of counsel
subsequently incurred by Indemnitee with respect to the same proceeding, provided that (i) Indemnitee shall have the
right to employ counsel in any such proceeding at Indemnitee’s expense; and (ii) if (A) the employment of counsel by
Indemnitee has been previously authorized by the Company, (B) Indemnitee shall have reasonably concluded that there may
be a conflict of interest between the Company and Indemnitee in the conduct of any such defense or (C) the Company
shall not, in fact, have employed counsel to assume the defense of such proceeding, then the fees and expenses of
Indemnitee’s counsel shall be at the expense of the Company.

3

 

3

 

4. Additional Indemnification Rights; Nonexclusivity.

(a) Scope. Notwithstanding any other provision of this Agreement, the Company hereby agrees to indemnify
the Indemnitee to the fullest extent permitted by law, notwithstanding that such indemnification is not specifically
authorized by the other provisions of this Agreement, the Company’s Certificate of Incorporation, the Company’s Bylaws
or by statute. In the event of any change, after the date of this Agreement, in any applicable law, statute, or rule
which expands the right of a Delaware corporation to indemnify a member of its board of directors or an officer, such
changes shall be deemed to be within the purview of Indemnitee’s rights and the Company’s obligations under this
Agreement. In the event of any change in any applicable law, statute or rule which narrows the right of a Delaware
corporation to indemnify a member of its board of directors or an officer, such changes, to the extent not otherwise
required by such law, statute or rule to be applied to this Agreement shall have no effect on this Agreement or the
parties’ rights and obligations hereunder.

(b) Nonexclusivity. The indemnification provided by this Agreement shall not be deemed exclusive of any
rights to which Indemnitee may be entitled under the Company’s Certificate of Incorporation, its Bylaws, any agreement,
any vote of stockholders or disinterested members of the Company’s Board of Directors, the General Corporation Law of
the State of Delaware, or otherwise, both as to action in Indemnitee’s official capacity and as to action in another
capacity while holding such office. The indemnification provided under this Agreement shall continue as to Indemnitee
for any action taken or not taken while serving in an indemnified capacity even though he or she may have ceased to
serve in any such capacity at the time of any action, suit or other covered proceeding.

5. Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to
indemnification by the Company for some or a portion of the expenses, judgments, fines or penalties actually or
reasonably incurred in the investigation, defense, appeal or settlement of any civil or criminal action, suit or
proceeding, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the
portion of such expenses, judgments, fines or penalties to which Indemnitee is entitled.

6. Mutual Acknowledgment. Both the Company and Indemnitee acknowledge that in certain instances, Federal
law or public policy may override applicable state law and prohibit the Company from indemnifying its directors and
officers under this Agreement or otherwise. For example, the Company and Indemnitee acknowledge that the Securities
and Exchange Commission (the “SEC”) has taken the position that indemnification is not permissible for
liabilities arising under certain federal securities laws, and federal legislation prohibits indemnification for
certain ERISA violations. Indemnitee understands and acknowledges that the Company has undertaken or may be required in
the future to undertake with the SEC to submit the question of indemnification to a court in certain circumstances for
a determination of the Company’s right under public policy to indemnify Indemnitee.

4

 

4

 

7. Officer and Director Liability Insurance. The Company shall, from time to time, make the good faith
determination whether or not it is practicable for the Company to obtain and maintain a policy or policies of insurance
with reputable insurance companies providing the officers and directors of the Company with coverage for losses from
wrongful acts, or to ensure the Company’s performance of its indemnification obligations under this Agreement. Among
other considerations, the Company will weigh the costs of obtaining such insurance coverage against the protection
afforded by such coverage. In all policies of director and officer liability insurance, Indemnitee shall be named as
an insured in such a manner as to provide Indemnitee the same rights and benefits as are accorded to the most favorably
insured of the Company’s directors, if Indemnitee is a director; or of the Company’s officers, if Indemnitee is not a
director of the Company but is an officer; or of the Company’s key employees, if Indemnitee is not an officer or
director but is a key employee. Notwithstanding the foregoing, the Company shall have no obligation to obtain or
maintain such insurance if the Company determines in good faith that such insurance is not reasonably available, if the
premium costs for such insurance are disproportionate to the amount of coverage provided, if the coverage provided by
such insurance is limited by exclusions so as to provide an insufficient benefit, or if Indemnitee is covered by
similar insurance maintained by a parent or subsidiary of the Company.

8. Severability. Nothing in this Agreement is intended to require or shall be construed as requiring the
Company to do or fail to do any act in violation of applicable law. The Company’s inability, pursuant to court order,
to perform its obligations under this Agreement shall not constitute a breach of this Agreement. The provisions of
this Agreement shall be severable as provided in this Section 8. If this Agreement or any portion hereof shall be
invalidated on any ground by any court of competent jurisdiction, then the Company shall nevertheless indemnify
Indemnitee to the full extent permitted by any applicable portion of this Agreement that shall not have been
invalidated, and the balance of this Agreement not so invalidated shall be enforceable in accordance with its terms.

9. Exceptions. Any other provision herein to the contrary notwithstanding, the Company shall not be
obligated pursuant to the terms of this Agreement:

(a) Claims Initiated by Indemnitee. To indemnify or advance expenses to Indemnitee with respect to
proceedings or claims initiated or brought voluntarily by Indemnitee and not by way of defense, except with respect to
proceedings brought to establish or enforce a right to indemnification under this Agreement or any other statute or law
or otherwise as required under Section 145 of the Delaware General Corporation Law, but such indemnification or
advancement of expenses may be provided by the Company in specific cases if the Board of Directors finds it to be
appropriate;

(b) Lack of Good Faith. To indemnify Indemnitee for any expenses incurred by Indemnitee with respect to
any proceeding instituted by Indemnitee to enforce or interpret this Agreement, if a court of competent jurisdiction
determines that each of the material assertions made by Indemnitee in such proceeding was not made in good faith or was
frivolous;

5

 

5

 

(c) Insured Claims. To indemnify Indemnitee for expenses or liabilities of any type whatsoever
(including, but not limited to, judgments, fines, ERISA excise taxes or penalties, and amounts paid in settlement) to
the extent such expenses or liabilities have been paid directly to Indemnitee by an insurance carrier under a policy of
officers’ and directors’ liability insurance maintained by the Company; or

(d) Claims under Section 16(b). To indemnify Indemnitee for expenses or the payment of profits arising
from the purchase and sale by Indemnitee of securities in violation of Section 16(b) of the Securities Exchange Act of
1934, as amended, or any similar successor statute.

10. Construction of Certain Phrases.

(a) For purposes of this Agreement, references to the “Company” shall include, in addition to the
resulting corporation, any constituent corporation (including any constituent of a constituent) absorbed in a
consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify
its directors, officers, and employees or agents, so that if Indemnitee is or was a director, officer, employee or
agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a
director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise,
Indemnitee shall stand in the same position under the provisions of this Agreement with respect to the resulting or
surviving corporation as Indemnitee would have with respect to such constituent corporation if its separate existence
had continued.

(b) For purposes of this Agreement, references to “other enterprises” shall include employee benefit
plans; references to “fines” shall include any excise taxes assessed on Indemnitee with respect to an employee
benefit plan; and references to “serving at the request of the Company” shall include any service as a
director, officer, employee or agent of the Company which imposes duties on, or involves services by, such director,
officer, employee or agent with respect to an employee benefit plan, its participants, or beneficiaries; and if
Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in the interest of the participants
and beneficiaries of an employee benefit plan, Indemnitee shall be deemed to have acted in a manner “not opposed to
the best interests of the Company” as referred to in this Agreement.

11. Attorneys’ Fees. In the event that any action is instituted by Indemnitee under this Agreement to
enforce or interpret any of the terms hereof, Indemnitee shall be entitled to be paid all court costs and expenses,
including reasonable attorneys’ fees, incurred by Indemnitee with respect to such action, unless as a part of such
action, the court of competent jurisdiction determines that each of the material assertions made by Indemnitee as a
basis for such action were not made in good faith or were frivolous. In the event of an action instituted by or in the
name of the Company under this Agreement or to enforce or interpret any of the terms of this Agreement, Indemnitee
shall be entitled to be paid all court costs and expenses, including attorneys’ fees, incurred by Indemnitee in defense
of such action (including with respect to Indemnitee’s counterclaims and cross-claims made in such action), unless as a
part of such action the court determines that each of Indemnitee’s material defenses to such action were made in bad
faith or were frivolous.

6

 

6

 

12. Miscellaneous.

(a) Governing Law. This Agreement and all acts and transactions pursuant hereto and the rights and
obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State
of Delaware, without giving effect to principles of conflict of law.

(b) Entire Agreement; Enforcement of Rights. This Agreement sets forth the entire agreement and
understanding of the parties relating to the subject matter herein and merges all prior discussions between them. No
modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, shall be effective
unless in writing signed by the parties to this Agreement. The failure by either party to enforce any rights under
this Agreement shall not be construed as a waiver of any rights of such party.

(c) Construction. This Agreement is the result of negotiations between and has been reviewed by each of
the parties hereto and their respective counsel, if any; accordingly, this Agreement shall be deemed to be the product
of all of the parties hereto, and no ambiguity shall be construed in favor of or against any one of the parties hereto.

(d) Notices. Any notice, demand or request required or permitted to be given under this Agreement shall
be in writing and shall be deemed sufficient when delivered personally or sent by telegram or fax, or forty-eight (48)
hours after being deposited in the U.S. mail, as certified or registered mail, with postage prepaid, and addressed to
the party to be notified at such party’s address as set forth below or as subsequently modified by written notice.

(e) Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be
deemed an original and all of which together shall constitute one instrument.

(f) Successors and Assigns. This Agreement shall be binding upon the Company and its successors and
assigns, and inure to the benefit of Indemnitee and Indemnitee’s heirs, legal representatives and assigns.

(g) Subrogation. In the event of payment under this Agreement, the Company shall be subrogated to the
extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all documents required and
shall do all acts that may be necessary to secure such rights and to enable the Company to effectively bring suit to
enforce such rights.

[Signature Page Follows]

7

 

7

 

The parties hereto have executed this Agreement as of the day and year set forth on the first page of this
Agreement.

AMERICAN REPROGRAPHICS COMPANY

a Delaware corporation

By: /s/ Kumarakulasingam Suriyakumar

Name: Kumarakulasingam Suriyakumar

Title: Chief Executive Officer, President and

Chairman of the Board

Address: 1981 N. Broadway, Suite 385

                 Walnut Creek, CA 94596

AGREED TO AND ACCEPTED:

/s/ James F. McNulty

James F. McNulty

Address: 7825 Prospect Place

                  La Jolla, CA 92037

8

 

8EX-10.14

EXHIBIT 10.14

AGREEMENT OF LEASE, made as of this 13th day of April, 2005, by and between FIFTH AVENUE
PARTNERS, L.P., 13 East 16th Street, Suite #400, New York, NY 10003, party of the first
part, hereinafter referred to as OWNER, and INTERACTIVE THERAPY GROUP, INC., 4615 North Street,
Jamesville, NY 13078, party of the second part, hereinafter referred to as TENANT, WITNESSETH:
Owner hereby leases to Tenant and Tenant hereby hires from Owner Suite #701 (the “Demised
Premises”), as per the attached “Exhibit A”in the building known as 19 West 21st Street
(“Building” or “building”) in the Borough of Manhattan, City of New York, for the term of five (5)
years and two (2) months (or until such term shall sooner cease and expire as hereinafter
provided), to commence on the

1st day of May, two thousand and five (“Commencement Date”)

and to end on the

31st day
of July, two thousand and ten (“Expiration Date”),          

both dates inclusive, at an annual rental rate set forth in Article 41 (“Rent”, “rent”, or “Fixed
Rent”), together with all other sums of money as shall become due and payable by Tenant under this
Lease (collectively, “Additional Rent” or “additional rent”), 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 set off 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:

Rent: 1. Tenant shall pay the Rent as above and hereinafter provided.

Occupancy, Use: 2. Tenant shall use and occupy the Demised Premises for executive offices,
provided such use is in accordance with t he Certificate of Occupancy for the Building, if any, and
for no other purpose.

Alterations: 3. Tenant shall make no changes in or to the Demised Premises of any nature without
Owner’s prior written consent. 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 nonstructural and which do not affect utility services or
plumbing and electrical lines, in or to the interior of the Demised Premises using contractors or
mechanics first approved by Owner. Tenant shall, at its expense, before making any alterations,
additions, installations or improvements obtain all permits, approval 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. Tenant agrees to carry and will cause Tenant’s contractors and sub-contractors to carry
such worker’s compensation, general 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
(30) days thereafter, at Tenant’s expense, by filing the bond required by law or otherwise. All
fixtures and all paneling, partitions, railings and like installations, installed in the 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 unless Owner,
by notice to Tenant no later than twenty (20) days prior to the date fixed as the termination of
this Lease, elects to relinquish Owner’s right thereto and to have them removed by Tenant, in which
event the same shall be removed from the Demised Premises by Tenant prior to the expiration of the
Lease, at Tenant’s expense. 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 any such from the premises or upon removal of other installations as may be required by
Owner, Tenant shall immediately and at its expense, repair and restore the premises to the
condition existing prior to installation and repair any damage to the 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 premises after Tenant’s removal shall be deemed abandoned and
may, at the election of Owner, either be retained as Owner’s property or removed from the premises
by Owner, at Tenant’s expense.

Repairs: 4. Owner shall maintain and repair the exterior of and the public portions of the
Building. Tenant shall, throughout the term of this Lease, take good care of the Demised Premises
including the bathrooms and lavatory facilities (if the Demised Premises encompass the entire floor
of the Building) and the windows and window frames and, the fixtures and appurtenances therein and
at Tenant’s sole cost and expense promptly make all repairs thereto and to the Building, whether
structural or non-structural in nature, caused by or resulting from the carelessness, omission,
neglect or improper conduct of Tenant, Tenant’s servants, employees, invitees or licensees, and
whether or not arising from such Tenant conduct or omission, when required by other provisions of
this Lease, including Article 6, Tenant shall also repair all damage to the Building and the
Demised Premises caused by the moving of Tenant’s fixtures, furniture or equipment. All the
aforesaid repairs shall be of quality or class equal to the original work or construction. If
Tenant fails, after ten (10) days notice, to proceed with due diligence to make repairs required to
be made by Tenant, the same may be made by the Owner at the expense of Tenant, and the expenses
thereof incurred by Owner shall be collectible, as Additional Rent, after rendition of a bill or
statement therefor. If the Demised Premises be or become infested with vermin, Tenant shall, at
its expense, cause the same to be exterminated. Tenant shall give Owner prompt notice of any
defective condition in any plumbing, heating system or electrical lines located in the Demised
Premises and following such notice, Owner shall remedy the condition with due diligence, but at the
expense of Tenant, if repairs are necessitated by damage or injury attributable to Tenant, Tenant’s
servants, agents, employees, invitees or licensees as aforesaid. Except as specifically provided
in Article 9 or elsewhere in this Lease, there shall be no allowance to the Tenant for a diminution
of rental value and no liability on the part of Owner by reason of inconvenience, annoyance or
injury to business arising from Owner, Tenant or others making or failing to make any 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. The provisions of this Article 4
with respect to the making of repairs shall not apply in the case of fire or other casualty with
regard to which Article 9 hereof shall apply.

Window Cleaning: 5. 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 New York State
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.

Requirements of Law,
Fire Insurance, Floor
Loads: 6. Prior to the commencement of the Lease term, if Tenant is then in possession, and at all
times thereafter, Tenant shall, at Tenant’s sole cost and expense, 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, or the 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, 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). Except as
provided in Article 30 hereof, 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 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.
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 and 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 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. If by reason of failure to comply with the foregoing 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

2

 

Owner and Tenant are parties, a schedule or “make-up” or rate for the Building or Demised Premises
issued by a body making fire insurance rates 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 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 judgment, to absorb
and prevent vibration, noise and annoyance.

Subordination: 7. 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 or 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 execute promptly any certificate that Owner may
request.

Property –
Loss, Damage,
Reimbursement,
Indemnity: 8. 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 shall not be liable for any damage caused by other tenants or
persons in, upon or about said building or caused by operations in connection 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
therefor 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 attorney’s fees, paid, suffered or
incurred as a result of any breach by Tenant, Tenant’s 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 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.

Destruction,
Fire and Other
Casualty: 9. (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, until such repair shall be substantially
completed, shall be apportioned from the day following the casualty according to the part of the
premises which is usable. (c) If the Demised Premises are totally damaged or rendered wholly
unusable by fire or other casualty, then the Rent shall be proportionately paid up to the time of
the casualty and thenceforth shall cease until the date when the premises shall have been repaired
and restored by Owner, 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, given within 90 days after such fire or casualty,
specifying a date for the expiration of the Lease, which date shall not be more than 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

3

 

premises without prejudice however, to Owner’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 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 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 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 the
foregoing, each party shall look first to any insurance in its favor before making any claim
against the other party for recovery for loss or damage resulting from fire or other casualty, and
to the extent that such insurance is in force and collectible and to the extent permitted by law,
Owner and Tenant each hereby releases and waives all right of recovery against the other or any one
claiming through or under each of them by way of subrogation or otherwise. The foregoing release
and waiver shall be in force only if both 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 party benefiting from
the waiver shall pay such premium within ten (10) 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.

Eminent Domain: 10. 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.

Assignment,
Mortgage, Etc. 11. 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 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, undertenant 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 wise be construed to relieve Tenant from obtaining
the express consent in writing of Owner to any further assignment or underletting.

Electric Current: 12. 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 wise make Owner liable or responsible to Tenant, for any loss, damage or expenses which
Tenant may sustain.

Access to
Premises: 13. 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, to examine the
same and to make such repairs, replacements and improvements as Owner may deem necessary and
reasonably desirable to any

4

 

portion of the Building or which Owner may elect to perform in the premises after Tenant’s failure
to make repairs or perform any work which Tenant is obligated to perform under this Lease, or for
the purpose of complying with laws, regulations and other directions of governmental authorities.
Tenant shall permit Owner to use and maintain and replace pipes and conduits in and through the
Demised Premises and to erect new pipes and conduits therein provided, wherever possible, they are
within walls or otherwise concealed. 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 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.
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 and may, during said six months period, place upon the premises the usual notices “To Let”
and “For Sale”, which notices Tenant shall permit to remain thereon without molestation. If Tenant
is not present to open and permit an entry into the 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 therefor, nor in any event shall the obligations of Tenant hereunder be affected.
If during the last month of the term Tenant shall have removed all or substantially all of
Tenant’s property therefrom, Owner may immediately enter, alter, renovate or redecorate the Demised
Premises without limitation or abatement of rent, or incurring liability to Tenant for any
compensation and such act shall have no effect on this Lease or Tenant’s obligations hereunder.

Vault,
Vault Space,
Area: 14. No vaults, vault space or area, whether or not enclosed or covered, not within the
property line of the Building is leased hereunder, anything contained in or indicated on any
sketch, blueprint or plan, or anything contained elsewhere in this Lease to the contrary
notwithstanding. 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, if used by Tenant, whether or not specifically leased hereunder.

Occupancy: 15. 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 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 premises and Tenant agrees to accept the same subject to violations, whether or not of
record. If any governmental license or permit shall be required for the proper and lawful conduct
of Tenant’s business, Tenant shall be responsible for and shall procure and maintain such license
or permit.

Bankruptcy: 16. (a) Anything elsewhere in this Lease to the contrary notwithstanding, this Lease
may be cancelled by Owner by 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 as the debtor; or (2) the making by Tenant
of an assignment or any other arrangements 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 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.

                            (b) 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 rental 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

5

 

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 premises or any part
thereof be relet 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 reletting shall be deemed to be the fair and reasonable rental value for
the part or the whole of the premises so relet during the term of the reletting. 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.

Default: 17. (1) If Tenant defaults in fulfilling any of the covenants of this Lease other than
the covenants for the payment of Rent or Additional Rent; or if the Demised Premises becomes vacant
or deserted, “or if this Lease be rejected under §235 of Title 11 of the U.S. Code (bankruptcy
code)”, 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 Tenant shall make default with respect to any other lease between Owner and Tenant; or if Tenant
shall have failed, after five (5) days written notice, to redeposit with Owner any portion of the
security deposited hereunder which Owner has applied to the payment of any Rent and Additional Rent
due and payable hereunder or failed to move into or take possession of the premises within fifteen
(15) days after the commencement of the term of this Lease, of which fact Owner shall be the sole
judge; then in any one or more of such events, upon Owner serving a written five (5) days notice
upon Tenant specifying the nature of said default and upon the expiration of said five (5) days, if
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
five (5) day period, and if Tenant shall not have diligently commenced curing such default within
such five (5) 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 three (3) days’ notice of
cancellation of this Lease upon Tenant, and upon the expiration of said three (3) days this Lease
and the term thereunder shall end and expire as fully and completely as if the expiration of such
three (3) day period were the day 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.

                    (2) If the notice provided for in (1) hereof shall have been given, and the term shall expire
as aforesaid; or if Tenant shall make default in the payment of the Rent reserved herein or any
item of Additional Rent herein mentioned or any part of either or in making any other payment
herein required; then and in any of such events Owner may without notice, reenter 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 premises as if this Lease had not been made, and Tenant hereby waives the
service of notice of intention to reenter or to institute legal proceedings to that end. If Tenant
shall make default hereunder 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.

Remedies of
Owner and Waiver
Of Redemption: 18. In case of any such default, reentry, expiration and/or dispossess by summary
proceedings or otherwise, (a) the Rent, and Additional Rent, shall become due thereupon and be
paid up to the time of such reentry, dispossess and/or expiration, (b) Owner may relet the
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, (c) Tenant or the legal representatives of Tenant shall
also pay 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 subsequent 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 relet the 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 reletting, such as legal expenses, attorneys’ fees, brokerage, advertising and for
keeping the Demised Premises in good order or for preparing the same for reletting. Any such
liquidated damages shall be paid in monthly

6

 

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 reletting 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 in no
event be liable in any way whatsoever for failure to relet the Demised Premises, or in the event
that the Demised Premises are relet, for failure to collect the rent thereof under such reletting,
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 reentry, 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.

Fees and
Expenses: 19. 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, 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 attorney’s fees, in instituting, prosecuting or
defending any action or proceedings, 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 five (5) days of rendition of any bill or statement to Tenant therefor. If Tenant’s
lease term shall have expired at the time of making such expenditures or incurring such
obligations, such sums shall be recoverable by Owner as damages.

Building Alterations
and Management: 20. Owner shall have the right at any time without the same constituting an
eviction and without incurring liability to Tenant therefor 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 Tenant 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 any 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.

No Representations
by Owner: 21. 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 or the Building except as herein expressly set forth and no rights,
easements or licenses are acquired by Tenant by implication or otherwise except as expressly set
forth 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” on the date
possession is tendered 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.

7

 

End of Term: 22. 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 from the Demised Premises. 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.

Quiet Enjoyment: 23. 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 34 hereof and to the ground leases, underlying leases and mortgages
hereinbefore mentioned.

Failure to Give
Possession: 24. 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 premises ready
for occupancy or because of the fact that a certificate of occupancy has not been procured or if
Owner has not completed any work required to be performed by Owner, 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
wise 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 any work required)
until after Owner shall have given Tenant notice that the premises are substantially ready for
Tenant’s occupancy. If permission is given to Tenant to enter into the possession 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 occupancy shall be deemed to be under all
the terms, covenants and provisions of this Lease, except as to the covenant to pay Rent. 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.

No Waiver: 25. 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 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. All checks tendered to Owner as and for the
rent of the Demised Premises shall be deemed payments for the account of Tenant. Acceptance by
Owner of rent from anyone other than Tenant shall not be deemed to operate as an attornment to
Owner by the payor of such rent or as a consent by Owner to an assignment or subletting by Tenant
of the Demised Premises to such payor, or as a modification of the provisions of this Lease. 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 said 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
premises.

Waiver of Trial
by Jury: 26. 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

8

 

of said premises, and any emergency statutory or any other statutory remedy. It is further
mutually agreed that in the event Owner commences any summary proceeding for possession of the
premises, Tenant will not interpose any counterclaim of whatever nature or description in any such
proceeding.

Inability to
Perform: 27. This Lease and the obligation of Tenant to pay Rent hereunder and perform all of the
other covenants and agreements hereunder on the part of Tenant to be performed shall in no wise 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 or fixtures if Owner is prevented from so
doing by reason of strike or labor troubles or any cause whatsoever beyond Owner’s sole control
including, but not limited to, government preemption in connection with a National Emergency 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 of supply and demand which have been or are affected by war
or other emergency.

Bills and
Notices: 28. Except as otherwise in this Lease provided, a bill, statement, notice or
communication which Owner may desire or be required to give to Tenant, shall be deemed sufficiently
given or rendered if, in writing, delivered to Tenant personally or sent by registered or certified
mail addressed to Tenant at the Building of which the Demised Premises form a part or at the last
known residence address or business address of Tenant or left at any of the aforesaid premises
addressed to Tenant, and the time of the rendition of such bill or statement and of the giving of
such notice or communication shall be deemed to be the time when the same is delivered to Tenant,
mailed, or left at the premises as herein provided. Any notice by Tenant to Owner must be served
by registered or certified mail addressed to Owner at the address first hereinabove given or at
such other address as Owner shall designate by written notice.

Water Charges: 29. If Tenant requires, uses or consumes water for any purpose in addition to
ordinary lavatory purposes (of which fact Tenant constitutes Owner to be the sole judge) Owner may
install a water meter and thereby measure Tenant’s water consumption for all purposes. Tenant
shall pay Owner for the cost of the meter and the cost of the installation thereof and throughout
the duration of Tenant’s occupancy Tenant shall keep said meter and installation equipment in good
working order and repair at Tenant’s own cost and expense in default of which Owner may cause such
meter and equipment to be replaced or repaired and collect the cost thereof from Tenant, as
Additional Rent. Tenant agrees to pay for water consumed, as shown on said meter at and when bills
are rendered, and on default in making such payment Owner may pay such charges and collect the same
from Tenant, as Additional Rent. Tenant covenants and agrees to pay, as Additional Rent, the sewer
rent, charge or any other tax, rent, levy or charge which now or hereafter is assessed, imposed or
a lien upon the Demised Premises or the realty of which they are part pursuant to law, order or
regulation made or issued in connection with the use, consumption, maintenance or supply of water,
water system or sewage or sewage connection or system. If the Building or the Demised Premises or
any part thereof is supplied with water through a meter through which water is also supplied to
other premises Tenant shall pay to Owner, as Additional Rent, on the first day of each month,
$25.00 of the total meter charges as Tenant’s portion. Independently of and in addition to any of
the remedies reserved to Owner hereinabove or elsewhere in this Lease, Owner may sue for and
collect any monies to be paid by Tenant or paid by Owner for any of the reasons or purposes
hereinabove set forth.

Sprinklers: 30. Anything elsewhere in this Lease to the contrary notwithstanding, if the New York
Board of Fire Underwriters or the New York Fire Insurance Exchange or any bureau, department or
official of the federal, state or city government recommend or require the installation of a
sprinkler system or that any changes, modifications, alterations, or additional sprinkler heads or
other equipment be made or supplied in an existing sprinkler system by reason of Tenant’s business,
or the location of partitions, trade fixtures, or other contents of the Demised Premises, or for
any other reason, or if any such sprinkler system installations, modifications, alterations,
additional sprinkler heads or other such equipment, become necessary to prevent the imposition of a
penalty or charge against the full allowance for a sprinkler system in the fire insurance rate set
by any said Exchange or by any fire insurance company, Tenant shall, at Tenant’s expense, promptly
make such sprinkler system installations, changes, modifications, alterations, and supply
additional sprinkler heads or other equipment as required whether the work involved shall be
structural or nonstructural in nature. Tenant shall pay to Owner as Additional Rent the sum

9

 

of $25.00 on the first day of each month during the term of this Lease, as Tenant’s portion of the
contract price for sprinkler supervisory service.

Elevators,
Heat, Cleaning: 31. As long as Tenant is not in default under any of the covenants of this Lease
Owner shall: (a) provide necessary passenger elevator facilities on business days from 8:00 AM to
6:00 PM and on Saturdays from 8:00 AM to 1:00 PM; (b) if freight elevator service is provided,
same shall be provided only on regular business days Monday through Friday inclusive, and on those
days only between the hours of 9:00 AM and 12:00 noon and between 1:00 PM and 5:00 PM; (c) furnish
heat, water and other services supplied by Owner to the Demised Premises, when and as required by
law, on business days from 8:00 AM to 6:00 PM and on Saturdays from 8:00 AM to 1:00 PM; (d) clean
the public halls and public portions of the Building which are used in common by all tenants.
Tenant shall, at Tenant’s expense, keep the Demised Premises, including the windows, clean and in
order, to the satisfaction of Owner, and for that purpose shall employ the person or persons, or
corporation approved by Owner. Tenant at Tenant’s sole cost and expense shall make arrangements
directly with Owner’s designated carting company for removal from the Building of all refuse and
rubbish generated by Tenant’s operations. Tenant shall enclose such refuse and rubbish in secured
garbage bags and place it for collection in the freight area of the floor on which the Demised
Premises is located. Owner at Owner’s sole option may at any time elect to contract for the
removal of Tenant’s refuse and rubbish and bill Tenant for same as Additional Rent. Owner reserves
the right to stop service of the heating, elevator, plumbing and electric systems, when necessary,
by reason of accident, of emergency, or for repairs, alterations, replacements or improvements, in
the judgment of Owner desirable or necessary to be made, until said repairs, alterations,
replacements or improvements shall have been completed. If the Building of which the Demised
Premises are a part supplies manually operated elevator service, Owner may proceed with alterations
necessary to substitute automatic control elevator service upon ten (10) day written notice to
Tenant without in any way affecting the obligations of Tenant hereunder, provided that the same
shall be done with the minimum amount of inconvenience to Tenant, and Owner pursues with due
diligence the completion of the alterations.

Security: 32. Security shall at all times be equal to no less than two months Fixed and Additional
Rent. Tenant has deposited with Owner the sum of $10,998.66 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 reletting of the premises, whether such damages or deficiency
accrued before or after summary proceedings or other reentry by Owner. 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.

Captions: 33. 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 provision thereof.

Definitions: 34. The term “Owner” as used in this Lease means only the owner of the fee or of the
leasehold of the Building, 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 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

10

 

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 or the lessee of the
Building has assumed and agreed to carry out any and all covenants and obligations of Owner
hereunder. The words “reenter” and “reentry” as used in this Lease are not restricted to their
technical legal meaning. The term “Rent” (or “Fixed Rent” or “rent”) includes the annual rental
rate whether so expressed or expressed in monthly installments, and “Additional Rent” (or
“additional rent”). “Additional Rent” means all sums which shall be due to new Owner from Tenant
under this Lease, in addition to the annual rental rate. The term “business days” as used in this
Lease, shall exclude Saturdays (except such portion thereof as it is covered by specific hours in
Article 31 hereof), Sundays and all days 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 regard to HVAC service.

Adjacent Excavation,
Shoring: 35. If an excavation shall be made upon land adjacent to the Demised Premises, or shall
be authorized to be made, Tenant shall afford to the person causing or authorized to cause such
excavation, license to enter upon the Demised Premises for the purpose of doing such work as said
person shall deem necessary to preserve the wall or the Building of which the 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.

Rules and
Regulations: 36. Tenant and Tenant’s servants, employees, agents, visitors, and licensees shall
observe faithfully, and comply strictly with, the Rules and Regulations annexed hereto and such
other and further reasonable Rules and Regulations as Owner or 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 Rule or Regulation hereafter
made or adopted by Owner or Owner’s agents, the parties hereto agree to submit the question of the
reasonableness of such Rule or Regulation 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 Rule or Regulation upon Tenant’s part
shall be deemed waived unless the same shall be asserted by service of a notice in writing upon
Owner within ten (10) 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.

Glass: 37. Owner shall replace, at the expense of the Tenant, any and all plate and other glass
damaged or broken from any cause whatsoever in and about the Demised Premises. Owner may insure,
and keep insured, at Tenant’s expense, all plate and other glass in the Demised Premises for and in
the name of Owner. Bills for the premiums therefor shall be rendered by Owner to Tenant at such
times as Owner may elect, and shall be due from, and payable by, Tenant when rendered, and the
amount thereof shall be deemed to be, and be paid, as Additional Rent.

Estoppel
Certificate: 38. 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 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.

Directory Board
Listing: 39. If, at the request of and as an accommodation to Tenant, Owner shall place upon the
directory board in the lobby of the Building, one or more names of persons other than Tenant, such
directory board listing shall not be construed as the consent by Owner to an assignment or
subletting by Tenant to such person or persons.

11

 

Successors and
Assigns: 40. 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.

In Witness Whereof, Owner and Tenant have respectively signed and sealed this Lease as of the day
and year first above written.

	 	 	 	 	 
	 	 	 
	 	     /s/ Steven Albert
 	 
	 	FIFTH AVENUE PARTNERS, L.P. 	 
	 	By Steven Albert, General Partner 	 
	 
	 	 	 
	 	     /s/ John M. Torrens
 	 
	 	INTERACTIVE THERAPY GROUP, INC. 
		By John M. Torrens, President
Date: 	 
	 	
Date: April 13, 2005 	 

12

 

	 	 	 	 	 

RIDER OF AGREEMENT OF LEASE (“LEASE”)

MADE AS OF APRIL 13TH, 2005

BY AND BETWEEN

FIFTH AVENUE PARTNERS, L.P., AS OWNER

AND

INTERACTIVE THERAPY GROUP, INC., AS TENANT

THIS RIDER IS INTENDED TO BE AFFIXED TO THE LEASE. IN THE EVENT OF ANY INCONSISTENCY BETWEEN THE
PROVISIONS OF THIS RIDER AND THE PRINTED PORTION OF THE LEASE, THE PROVISIONS OF THIS RIDER SHALL
CONTROL.

ARTICLE 41 — FIXED RENT AND ADDITIONAL RENT

          Tenant shall pay to Owner Fixed Rent during the first twelve (12) months of the term an amount
of $64,792.00 per year, payable in equal monthly installments of $5,399.33 in advance on the first
business day of each and every calendar month.

          For the purpose of this lease the Fixed Rent shall be as follows, payable in equal monthly
installments:

May 1st, 2005 until April 30th, 2006 — $64,792.00

May 1st, 2006 until April 30th, 2007 — $66,735.76

May 1st, 2007 until April 30th, 2008 — $68,737.83

May 1st, 2008 until April 30th, 2009 — $70,799.96

May 1st, 2009 until April 30th, 2010 — $72,923.95

May 1st, 2010 until June 30th, 2010 — $12,518.61

          Provided no default exists under this Lease, Fixed Rent for the month of May 2005 shall be
reduced to 0 to give effect to the fact a full month’s rent was received by the Owner at the
signing of this Lease. Fixed Rent for the months of June 2005 and July 2005 shall be further
reduced to 0 to give effect to a Rent Abatement. No part of the Rent Abatement shall be granted
unless no default exists under the Lease.

ARTICLE 42 — NOTICES

          Any notice, request, consent, approval, demand or other communication permitted or required to
be given pursuant to the terms, covenants and conditions of this Lease, or pursuant to any law or
governmental regulation (collectively, “Notices”), shall be in writing and, unless otherwise
required by such law or regulation, shall be sent by registered or certified mail, return receipt
requested, to the parties at the addresses set forth in this Lease.

ARTICLE 43 — EXCULPATION

          If Owner or any successor in interest is an individual, joint venture, tenancy-in-common,
general or limited partnership, unincorporated association or other unincorporated aggregate of
individuals (collectively, “unincorporated Owner”) and shall at any time have any liability under,
pursuant to or in connection with this Lease, neither Tenant nor any other party shall seek any
personal or money judgment against unincorporated Owner or in any other way under or pursuant to
this Lease. Any attempt by Tenant or others to seek any such personal liability or monetary
obligation shall, in addition to and not in limitation of unincorporated Owner’s other rights,
powers, privileges and remedies under this Lease, immediately vest unincorporated Owner with the
unconditional right to cancel this Lease on three (3) days’ notice to Tenant.

ARTICLE 44 — BROKER

          Tenant represents and warrants that it has not dealt with any broker or brokers other than
OLMSTEAD PROPERTIES INC. and HUDSON REALTY ENTERPRISES, LTD. in the negotiation of this Lease.
Tenant shall indemnify and hold Owner harmless from and against any and all loss, liability, claims
or expenses (including, without limitation, attorneys’ fees) that Owner may incur by reason of the
breach of the foregoing

13

 

representation or by reason of the claims of any brokers in connection with this transaction or
arising out of any assignment of this Lease or sublease of all or a part of the Demised Premises by
Tenant.

ARTICLE 45 — LATE CHARGES

          If Tenant fails to pay any installment of Fixed Rent or Additional Rent by the fifth (5th) day
of each month, Tenant shall be required to pay a late charge of eight (8) cents for each dollar
unpaid. Such charge is to be computed retroactively to the date on which Fixed Rent or Additional
Rent became due and payable. The late charge is intended to compensate Owner for additional
expenses incurred in processing such late payments and is not intended to prevent Owner from
exercising any other available remedies against Tenant.

ARTICLE 46 — TENANT COVENANTS

          46.1 Tenant shall not make any claim against Owner for any injury or damage to Tenant or to
any other person or for any damage (by water, malicious mischief or otherwise) to, or loss of, or
loss of use of (by theft, mysterious disappearance or otherwise) any property of Tenant or of any
other person, or property irrespective of the cause of such injury, damage or loss, unless caused
by the negligence of Owner, its agents, servants or employees in connection with the operation or
maintenance of the Demised Premises or the Building. No property other than such as might normally
be brought upon or kept in the Demised Premises as an incident to the reasonable use of the Demised
Premises for the purposes herein specified shall be brought upon or kept in the Demised Premises.

       46.2 Tenant shall, at its sole cost and expense:

          46.2.1 Maintain the Demised Premises in a clean and sanitary manner. If tenant uses a
cleaning service in the evening after 6:00 PM or on weekends, that service shall be an approved
service designated by the Owner and used substantially in the Building.

          46.2.2 Remove all rubbish and other debris from the Demised Premises to such locations in the
Building as may be reasonably specified by Owner from time to time and under conditions approved by
Owner.

          46.2.3 If necessary, obtain and maintain a service contract (or contracts) with a person or
company reasonably acceptable to Owner for the extermination of vermin, rats, mice, flies and other
insects in the Demised Premises, and use all reasonable diligence in accordance with the best
prevailing methods for doing so in the Borough of Manhattan to prevent and exterminate vermin,
rats, mice, flies and other insects in, on or about the Demised Premises.

       46.3 Obtain and maintain an annual service contract for the air conditioning unit(s), if any,
within the Demised Premises, and pay directly for individual repairs not covered by said contract.
In addition, Tenant agrees to obtain and pay directly for any and all permits and/or licenses
associated with the operation of the air conditioning unit(s).

          Unless specified or defined in this Lease or otherwise agreed upon between Owner and Tenant,
any and all air conditioning equipment existing or installed by either Owner or Tenant in the
Demised Premises at the time or during the term of this Lease shall remain in the Demised Premises
and shall be considered leasehold improvements at the expiration of this Lease or upon vacating of
the Demised Premises by Tenant, either willfully or under any other terms or conditions of this
Lease.

          46.4 Tenant shall, at its sole cost and expense, place and maintain machines and mechanical
equipment located in the Demised Premises that cause noise or vibration that may be transmitted to
the structure of the Building (to such a degree as to be reasonably objectionable to Owner or any
occupant of the Building) in settings of cork, rubber or spring type vibration eliminators
sufficient to eliminate noise or vibration.

          46.5 Tenant shall not permit any cooking on the Demised Premises, whether hot or cold, except
that a microwave, coffeemaker and small refrigerator for use by Tenant’s employees shall be
permitted.

          46.6 Tenant has inspected the Demised Premises and agrees to take them as they are in “as is”
condition, and agrees to bear all expenses of making nonstructural repairs to the Demised Premises,
including without limitation, plumbing, electrical work, fixtures and all interior repairs, in a
manner consistent with section 3.

14

 

          46.7 Tenant agrees that it shall not permit its employees and/or visitors to congregate in the
Building lobby, the public corridors or in front of the Building. Tenant expressly agrees that any
violation of this Article shall constitute a material default under this Lease.

          46.8 Tenant shall not bring any pets into the Demised Premises or permit any pets to be
brought into or kept within the Demised Premises.

ARTICLE 47 — INSURANCE

          Tenant shall, at its sole cost and expense, obtain and at all times during the Term maintain
with responsible insurance carriers acceptable to Owner licensed to do business in the State of New
York, insurance covering the Demised Premises for the mutual benefit of Owner and Tenant as
follows:

          47.1 Fire Insurance with broad form extended coverage endorsement from time to time available,
for an amount not less than the full replacement value of Tenant’s Improvements and Tenant’s
personal property located in the Demised Premises. “Full replacement value” shall be determined at
the request of Owner by an architect, appraiser, appraisal company or one of the insurer’s selected
by Owner and paid for by Tenant, but such determination shall not be required to be made more
frequently than once every two (2) years. No omission on the part of Owner to request any such
determination shall relieve Tenant of any of its obligations under this Article.

          47.2 Comprehensive General Liability Insurance, with such limits as may be reasonably
requested by Owner from time to time, but not less than a combined single limit of $1,500,000.00.

          47.3 All required insurance policies shall name Owner as an additional insured or loss payee,
as the case may be, and shall include a provision that they shall not be canceled without thirty
(30) days’ prior written notice to Owner. Tenant shall deliver copies of all required insurance
policies or certificates evidencing such coverage prior to the Commencement Date and renewal
policies prior to the expiration of the existing policies together with evidence of the payment of
premiums therefor.

          47.4 Tenant shall pay to Owner as Additional Rent an amount equal to any additional insurance
premium charged to Owner by Owner’s insurers as a direct or indirect result of Tenant’s tenancy in
the Building.

          47.5 Tenant can only deliver to or remove from the Demised Premises any freight, furniture,
business equipment, merchandise and bulky matter of any description, on the freight elevators
and/or through the service entrances and corridors of the Building and only during the hours and in
the manner approved by Owner from time to time. Tenant can only be permitted to deliver to or
remove from the Demised Premises any of the items described in this article after Tenant has given
Owner three (3) days prior written notice of Tenant’s intention to make such delivery or removal,
and provides Owner with written evidence that such delivery or removal is being made by an
individual or an entity who possesses general liability and workers compensation insurance or other
insurance as may be required by Owner in an amount which Owner deems to be sufficient.

ARTICLE 48 — ADDITIONAL REMEDIES

          48.1 If the Term shall terminate pursuant to Article 17 or otherwise, then:

          48.1.1 Tenant shall pay to Owner all Fixed Rent and Additional Rent required to be paid by
Tenant to the date upon which the Term shall have terminated or to the date of re-entry upon the
Demised Premises by Owner, as the case may be;

          48.1.2 Owner shall be entitled to retain all moneys, if any, paid by Tenant to Owner, whether
as advance Rent, security or otherwise;

          48.1.3 Tenant shall be liable for and shall pay to Owner, as damages, any deficiency between
the Fixed Rent and Additional Rent payable for the period which otherwise would have constituted
the unexpired portion of

15

 

the Term (conclusively presuming the Additional Rent to be the same as was payable for the twelve
(12) month period immediately preceding such termination or re-entry) and the net amount, if any,
of rents collected under any reletting effected pursuant to the provisions of this Article for any
part of such period (first deducting from the rents collected under any such reletting all of
Owner’s expenses in connection with the termination of this Lease or Owner’s re-entry upon the
Demised Premises and, in connection with such reletting, all repossession costs, brokerage
commissions, legal expenses, attorneys’ fees, alteration costs and other expenses); and

          48.1.4 Any such deficiency shall be paid in monthly installments by Tenant on the days
specified in this Lease for the payment of installments of Fixed Rent. Owner shall be entitled to
recover from Tenant each monthly deficiency as the same shall arise and no suit to collect the
amount of the deficiency for any month shall prejudice Owner’s right to collect the deficiency for
any subsequent month by a similar proceeding. Alternatively, a suit or suits for the recovery of
such deficiencies may be brought by Owner from time to time at its election.

          48.1.5 Notwithstanding anything herein to the contrary, the premises herein mentioned are
demised for the whole term with a whole amount of the Rent herein reserved due and payable at the
time of the making of this Lease, and the payment of rent in installments as above provided is for
the convenience of Tenant only, and if in default of any installment of Rent, then the whole of the
Rent reserved for the whole of the period then remaining unpaid, shall at the Owner’s option at
once become due and payable without notice or demand.

ARTICLE 49 — CERTIFICATES BY TENANTS

          At any time and from time to time, Tenant, for the benefit of Owner and the lessor under any
ground lease or underlying lease or the holder of any leasehold mortgage affecting any ground lease
or underlying lease, or of any fee mortgage covering the land or the land and Building containing
the Demised Premises, on at least five (5) days prior written request by Owner, will deliver to
Owner a statement certifying that this Lease is not modified and is in full force and effect (or if
there shall have been modifications, the same is in full force and effect as modified, and stating
the modifications), the commencement and expiration dates hereof, the dates to which the Fixed
Rent, Additional Rent and other charges have been paid, and whether or not, to the best knowledge
of the signer of such statement, there are any then existing defaults on the part of either Owner
or Tenant in the performance of the terms, covenants and conditions of this Lease, and if so,
specifying the default of which the signer of such statement has knowledge.

          Owner shall from time to time provide upon ten (10) days prior written request by Tenant a
statement certifying as to status of Rent and Additional Rent payments due under this Lease and/or
that the Lease has not been modified and remains in full force and effect.

ARTICLE 50 — LEGAL REQUIREMENTS

          If at any time during the term of this Lease, the fire safety law requirements of the City of
New York pursuant to Local Law #5 of 1973 or otherwise (“Fire Requirements”), masonry or exterior
wall requirements of the City of New York pursuant to Local Law #10 of 1980 or otherwise (“Masonry
Requirements”) or life safety requirements of the City of New York pursuant to Local Law #16 of
1984 or otherwise (“Safety Requirements”) or any other laws or requirements of the City of New York
or any agency having jurisdiction (“Other Requirements”) impose any obligations or requirements
upon Owner to perform any alteration, changes, installations or improvements (collectively
“changes”) to the Building hereof and/or the Demised Premises, then Tenant shall pay to Owner as
Additional Rent two point five (2.5%) percent (“Tenant’s Payment”) of all costs and expenses
incurred by Owner in complying with such Fire Requirements, Masonry Requirements, Safety
Requirements or Other Requirements. Tenant’s Payment shall be due and payable to Owner within
thirty (30) days after rendition of a bill therefor, accompanied by a statement setting forth the
changes performed by Owner. The obligation of Tenant in respect of such Additional Rent shall
survive the expiration of this Lease. Notwithstanding anything to the contrary in this Paragraph,
should Tenant’s use, occupancy, or installation require specific compliance under such Requirements
above, then Tenant shall be responsible for 100% of the cost of said charges.

ARTICLE 51 — ALTERATIONS

          Anything in Article 3 to the contrary notwithstanding, Owner shall not unreasonably withhold
or delay approval of written requests of Tenant to make non-structural interior alterations,
decorations, additions and

16

 

improvements (herein referred to as “alterations”) in the Demised Premises, provided that such
alterations do not affect utility services or plumbing and electrical lines or other systems of the
Building, and provided that all such alterations shall be performed in accordance with the
following conditions:

          51.1 All such alterations shall be performed in accordance with architect’s plans and
specifications first submitted to Owner for its prior written approval.

          51.2 All alterations shall be performed in a good and workmanlike manner, in compliance with
all other applicable provisions of this Lease and with all governmental authorities having
jurisdiction, and Tenant shall, prior to the commencement of any such alterations, at its sole cost
and expense obtain and exhibit to Owner any governmental permit required in connection with such
alterations.

          51.3 All work in connection with alterations shall be performed with union labor having the
proper jurisdictional qualifications.

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

          51.5 Prior to the commencement of any work by or for Tenant, Tenant shall furnish to Owner
certificates of insurance evidencing the existence of the following insurance:

          51.5.1 Worker’s compensation insurance covering all persons employed for such work and with
respect to whom death or bodily injury claims could be asserted against Owner, Tenant or the
Demised Premises;

          51.5.2 General liability insurance naming Owner, its designees, and Tenant as additional
insured, with limits of not less than $1,000,000 in the event of bodily injury to one person and
not less than $1,000,000, in the event of bodily injury to any number of persons in any one
occurrence, and with limits of not less than $500,000 for property damage. Tenant at its sole cost
and expense shall cause all such insurance to be maintained at all times when work to be performed
for or by Tenant is in progress. All such insurance shall be issued by a company authorized to do
business in New York and all policies or certificates therefor, issued by the insurer and bearing
notations evidencing the payment of premiums, shall be delivered to Owner.

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

          51.7 Any alterations to be made by Tenant (other than plumbing and electrical work) may be
performed by any reputable contractor or mechanic (collectively, “Contractor”) selected by Tenant
and approved by Owner, which approval Owner agrees it will not unreasonably withhold or delay,
provided the Contractor’s performance of the alterations would not result in any labor discord in
the Building.

          51.8 Tenant may not, at any time during the Term, remove any alterations made by Tenant,
without the written approval of Owner.

          51.9 Any restoration or repair which Tenant is required to make (whether structural or
non-structural) shall be of a quality or class equal to the then Building Standard.

          51.10 Tenant shall pay to Owner the sum of Two Hundred Fifty Dollars ($250.00) in connection
with any Tenant’s changes or alterations, which must be approved by Owner in accordance with the
terms of this Article.

          51.11 The time during which Owner may make Owner’s elections pursuant to Article 3 hereof
shall be extended to include a period commencing thirty (30) days prior to the expiration or other
termination of this Lease or any renewal or extension thereof and terminating ninety (90) days
thereafter. Tenant agrees that Owner’s rights hereunder shall survive the expiration of this Lease
or any renewal or extension thereof.

          51.12 Nothing in this Lease shall be construed in any way as constituting the permission,
consent or request of Owner, express or implied, through act or omission, to act by inference or
otherwise, to any contractor,

17

 

subcontractor, laborer, or materialman for the performance of any labor or the furnishing of any
materials for any specific improvement, installation, addition, decoration, alteration, or repair
of the Demised Premises or as giving Tenant the right, power, or authority to contract for or
permit the rendering of any service or the furnishing of any material that would give rise to the
filing of any mechanic’s lien against the fee of the Demised Premises.

ARTICLE 52 — CONTRACTORS

          When in this Lease the Tenant shall take or be required to take any action which may affect or
alter the plumbing or electrical facilities or services furnished by Owner in the Building, the
Demised Premises, or any portion thereof, Tenant shall only be entitled to have such work performed
by the building contractor designated from time to time by Owner, in its sole and absolute
discretion, to perform such alteration. Owner shall not be required to permit and Tenant shall not
be entitled to use any contractors not designated as Owner’s selected contractors, provided,
however, that such contractors’ bids do not exceed by more than 15% the bids for work of comparable
quality, workmanship and specifications for performing such alterations submitted by Tenant’s
contractors. If Tenant’s contractor’s bids are more than 15% below the bids of Owner’s
contractors, Owner agrees not to unreasonably withhold or delay approval of Tenant’s performance of
such alteration. Notwithstanding the foregoing, Tenant’s contractors must be properly licensed.

ARTICLE 53 — TENANT’S CONDEMNATION CLAIM

          Notwithstanding anything in Article 10 to the contrary, Tenant shall have the right to make a
claim against the condemning authority for the value of its trade fixtures and business machines
and equipment taken in a condemnation, and for reimbursement of its resultant moving expenses.

ARTICLE 54 — ACCESS TO THE DEMISED PREMISES

          Supplementing the provisions of Article 13, Owner’s right to enter the Demised Premises and
its access thereto to make repairs and alterations and to erect and maintain pipes and conduits
(except in the event of an emergency, in which event that right shall be unrestricted) shall be
subject to the following conditions:

          54.1 Owner shall give Tenant reasonable notice of proposed entry or access;

          54.2 Owner shall not be obligated to perform work other than during normal business hours.

ARTICLE 55 — SQUARE FOOTAGE

          Tenant acknowledges that no representations have been made by the Owner as to the amount of
square footage in the Demised Premises, irrespective of any reference in this Lease to square
footage for any computation. The Tenant has inspected the Demised Premises and relies upon its own
judgment in computing the square footage.

ARTICLE 56 — PLATE GLASS

          Tenant at its own cost and expense shall replace all damaged or broken plate glass or other
windows in or about the Demised Premises.

ARTICLE 57 — ADDITIONAL RENT

          All payments other than the Fixed Rent to be made by Tenant pursuant to this Lease shall be
deemed Additional Rent and, in the event of any non-payment, Owner shall have all rights and
remedies provided for herein or by law for non-payment of Rent.

ARTICLE 58 — CONDITIONAL LIMITATION

          If Tenant defaults in the payment of Fixed or Additional Rent, or in making any other payment
required for a total of two (2) months, whether or not consecutive, in any twelve (12) month
period, and Owner shall have served upon Tenant a petition and notice of petition to dispossess
Tenant by summary proceedings for any one or

18

 

both of those months, then, notwithstanding that those defaults shall have been cured prior to the
entry of a judgment against Tenant, any further similar default shall be deemed to be deliberate
and Owner may require Tenant to deposit two additional months security deposit, and/or at Owner’s
option Owner may serve a written three (3) days’ notice of cancellation of this Lease upon the
Tenant, and upon the expiration of that three (3) days, whether or not Tenant has paid its Rent
within that period, this Lease shall end and expire as fully and completely as if the expiration of
such three (3) day period was the day herein definitely fixed for the end and expiration of this
Lease and the Term, and Tenant shall remain liable as elsewhere provided in the Lease.

ARTICLE 59 — UTILITY INCREASE

Intentionally Omitted

ARTICLE 60 — GAS AND WATER

          Tenant shall make its own arrangements with the public utility company or companies or such
New York City agencies servicing the Demised Premises for the furnishing of and payment of charges
for gas and water. In no event shall Owner be responsible for charges for any such service. If
gas or water is used in the Demised Premises, Tenant covenants to install the appropriate gas
cutoff devices (manual and automatic) and meters for each service at Tenant’s own cost and expense.
Anything to the contrary in Article 29 of this Lease notwithstanding, water charges contained in
Article 29 of this Lease are for the use of existing lavatories and Tenant must install a meter for
any other use of water in or about the Demised Premises.

ARTICLE 61 — NOISE

          Tenant shall not permit noise to emanate from the Demised Premises at a sound level which
shall in any way disturb other tenants of the Building, or at a level that exceeds the level of
sound emanating from other floors of the Building. This Article shall directly bind any successors
in interest to Tenant. Tenant agrees that if at any time Tenant violates any of the provisions of
this Article, such violation shall be deemed a breach of a substantial obligation of the terms of
this Lease.

ARTICLE 62 — PORNOGRAPHY

          Tenant agrees that the value of the Demised Premises will be substantially diminished and the
reputation of Owner and the partners of the Owner will be seriously injured if the premises are
used for any obscene or pornographic purposes or any sort of commercial sex establishment. Tenant
agrees that Tenant will not bring or permit any obscene or pornographic material on the premises,
and shall not conduct or permit any obscene, nude or semi-nude live performances on the premises,
nor permit use of the premises for nude modeling, rap sessions, or as a massage parlor. Tenant also
agrees that it will not permit the production or processing of any videotape, film or photograph on
the premises which depicts explicit sexual acts. Tenant agrees further that it will not permit any
of the herein mentioned uses by any sublessee or assignee of the premises. This Paragraph shall
bind successors in interest to Tenant. Tenant agrees that any violation of the term of this
Paragraph shall be deemed a breach of a substantial obligation of Tenant under this Lease.
Pornographic material, for purposes of this Paragraph, is defined as any written or pictorial
matter with prurient appeal or any object or instrument primarily used for lewd or prurient sexual
activity.

ARTICLE 63 — ODORS

          Tenant shall not cause or permit any unusual or objectionable odors, by-products or waste
material to emanate from the Demised Premises. Tenant covenants that it will hold Owner harmless
against all claims, damages or causes of action for damages arising after the commencement of the
term of this Lease and will indemnify the Owner from any suits, orders or decrees and judgments
entered therein, brought on account of any such emanation from the Demised Premises of unusual or
objectionable odors, by-products or waste material. Tenant covenants to pay any attorney’s fees
and other legal expenses incurred by Owner in connection with any claim or suit as described in
this Paragraph.

19

 

ARTICLE 64 — OWNER’S COSTS BY TENANT’S DEFAULTS

          If Owner, as a result of a default by Tenant of any of the provisions of this Lease, including
the covenants to pay Rent and/or Additional Rent, makes any expenditure or incurs any obligations
for the payment of money, including but not limited to attorney’s fees, in instituting, prosecuting
or defending any action or proceeding, such sums so paid or obligations so incurred with interest
and costs shall be deemed to be Additional Rent hereunder and shall be paid by Tenant to Owner
within five (5) days of rendition of any bill or statement to Tenant therefor, and if any
expenditure is incurred in collecting such obligations, such sum shall be recoverable by Owner as
additional damages.

ARTICLE 65 — HOLDING OVER

          If Tenant holds over in possession after the expiration or sooner termination of the original
term or of any extended term of this Lease, such holding over shall not be deemed to extend the
term or renew the Lease, but such holding over thereafter shall continue upon the covenants and
conditions herein set forth, except that the charge for use and occupancy of such holding over, for
each calendar month or part thereof (even if such part shall be a small fraction of a calendar
month), shall be the sum of:

          65.1 One-twelfth (1/12) of the highest annual Rent rate set forth on Page One of this Lease,
times two point five (2.5), plus

          65.2 One-twelfth (1/12) of annual Additional Rent, which annual Additional Rent would have
been payable pursuant to this Lease had this Lease not expired, plus

          65.3 Those other items of Additional Rent (not annual Additional Rent) which would have been
payable monthly pursuant to this Lease had this Lease not expired, which total sum Tenant agrees to
pay to Owner promptly upon demand, in full, without set-off or deduction. Neither the billing nor
the collection of use and occupancy charges shall be deemed a waiver of any right of Owner to
collect damages for Tenant’s failure to vacate the Demised Premises after the expiration or sooner
termination of this Lease. The aforesaid provisions of this Article shall survive the expiration
of this Lease.

ARTICLE 66 — DEPOSIT OF CHECKS

          Owner’s deposit of any checks delivered by Tenant simultaneously with Tenant’s execution and
delivery of this Lease shall not constitute Owner’s execution and delivery of this Lease.

ARTICLE 67 — PARTIAL PAYMENT

          If Owner receives from Tenant any payment (“Partial Payment”) of less than the sum of the
Fixed Rent, Additional Rent and other charges then due and owing pursuant to the terms of this
Lease, Owner in its sole discretion may allocate such Partial Payment in whole or in part to any
Fixed annual Rent, any annual Rent and/or any other charges, or to any combination thereof.

ARTICLE 68 — PORTERS WAGE RATE

Intentionally Omitted

ARTICLE 69 – SUBLEASING AND ASSIGNMENT

          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, provided that:

          (a) Tenant shall furnish Owner with the name and business address of the proposed subtenant or
assignee, a counterpart of the proposed sublease or assignment agreement, and 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.

20

 

          (b) In the reasonable judgment of Owner the proposed subtenant or assignee is financially
responsible with respect to its proposed obligations under the proposed agreement and is of a
character engaged in a business which is in keeping with the standards of the Building and the
floor or floors in which the Demised Premises are located.

          (c) An executed duplicate original in a form satisfactory to Owner for review by Owner’s
counsel of such sublease or assignment agreement shall be delivered to Owner at least five (5) days
prior to the effective date thereof. In the event of any assignment, Tenant will deliver to Owner
at least five (5) 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) Tenant, at Tenant’s expense, shall provide and permit reasonably appropriate means of
ingress to and egress from space sublet by Tenant.

          (e) Except for any subletting or assignment by Tenant to Owner, each subletting or assignment
shall be subject to all the covenants, agreements, terms, provisions and conditions contained in
this Lease.

          (f) Tenant covenants and agrees that notwithstanding any subletting or assignment to Owner, or
to any other subtenant or assignee, and/or acceptance of Rent or Additional Rent by Owner from any
subtenant or assignee, Tenant shall and will remain fully liable for the payment of the annual Rent
and Additional Rent due and to become due hereunder and for the performance of all the covenants,
agreements, terms, provisions and conditions contained in this Lease on the part of the Tenant to
be performed.

          (g) Tenant further agrees that it shall not at any time publicly advertise at a rental rate
less than the Fixed annual Rent plus any Additional Rent then payable hereunder, for assignment or
sublease of all of the space demised herein, or for sublease of any portion of the space demised
herein, but nothing herein contained shall be deemed to be Owner’s consent to any assignment or
subletting.

          (h) Notwithstanding anything contained herein to the contrary, Tenant shall have no right to
assign this Lease or to sublet the whole of the Demised Premises prior to or during the initial six
(6) months following the Commencement Date hereof.

          (i) Tenant shall have no right to assign this Lease or sublet the whole or any part of the
Demised Premises 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 12 months immediately
preceding Owner’s receipt of Tenant’s notice pursuant to item II of this Article.

          (j) Such subletting or assignment shall not cause Owner any cost.

          (k) Tenant shall have complied and shall comply with each of the provisions in this Article
and Owner shall not have made any election as provided in item II hereof.

II

          If Tenant shall desire to sublet all or a portion of the Demised Premises or to assign this
Lease, Tenant shall send to Owner a written notice by registered or certified mail at least ninety
(90) days prior to the date such assignment or subletting is to commence stating (w) that the
intention is to assign the Lease, (x) the portion of the premises that the Tenant desires to
sublet, and if the portion intended to be sublet shall be less than the entire Demised Premises and
other than an entire floor or multiple thereof, such notice shall be accompanied by a reasonably
accurate floor plan of the premises to be sublet, (y) the term of such proposed subletting and (z)
the proposed commencement date of such subletting or assignment.

          (a) If Tenant desires to sublet all of the Demised Premises or to assign this Lease, then
within sixty (60) days after receipt of the aforesaid notice Owner may notify Tenant that Owner
elects (1) to cancel this

21

 

Lease, in which event such cancellation shall become effective on the date set forth pursuant to
(z) above and this Lease shall thereupon terminate on said date with the same force and effect as
if said date were the expiration date of this Lease: or (2) to require Tenant to assign this Lease
to Owner effective from the date set forth pursuant to (z) above. In either event Tenant shall be
obligated to surrender possession of the Demised Premises in the same condition as Tenant is
obliged to surrender possession at the end of the term as provided in this Lease. Such assignment
to Owner shall provide that the parties to such assignment expressly negate any intention that any
estate created under such assignment be merged with any other estate held by either of said
parties.

          (b) If Tenant desires to sublet less than all of the Demised Premises then within sixty (60)
days after receipt of the aforesaid notice, Owner may notify Tenant that Owner elects to require
Tenant to sublease to Owner as subtenant of Tenant, the portion of the Demised Premises that Tenant
had specified in its notice to Owner, for the term, and from the commencement date specified in
said notice. The annual Rent and Additional Rent which Owner shall pay to Tenant shall be a pro
rata apportionment of the annual Rent and Additional Rent payable hereunder, and it is hereby
expressly agreed that such sublease to Owner shall be upon all the covenants, agreements, terms,
provisions and conditions contained in this Lease except for such thereof which are inapplicable,
and such sublease shall give Owner the unqualified and unrestricted right without Tenant’s
permission to assign such sublease or any interest therein and/or to sublet the space covered by
such sublease or any part or parts of such space and to make or cause to have made or permit to be
made any and all changes, alterations, decorations, additions, and improvements in the space
covered by such sublease, and that such may be removed, in whole or part, at Owner’s option, prior
to or upon the expiration or other termination of such sublease, provided that any damages or
injury caused by such removal shall be repaired. Such sublease to Owner shall also provide that the
parties to such sublease expressly negate any intention that any estate created under such sublease
be merged with any other estate held by either of said parties.

          (c) Tenant covenants and agrees that any such assignment or subletting to Owner or further
assignment or subletting by Owner or Owner’s assignee or sublessee may be for any purpose or
purposes that Owner, in Owner’s uncontrolled discretion, shall deem suitable or appropriate.

          (d) If Owner should fail to exercise any of the elections granted to it pursuant to the
provisions of sub-paragraphs “(a)” or “(b)” of Item II of this Article and if Tenant should sublet
all or a portion of the Demised Premises for a rental in excess of the sum of annual Rent
stipulated herein and Additional Rent arising hereunder, then Tenant shall pay to Owner as
Additional Rent 50% of such excess amount. In computing such excess amount appropriate pro-rata
adjustments shall be made with respect to a subletting of less than all of the Demised Premises.

          (e) 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 a subletting pursuant to this Article. Tenant agrees that its sole remedy shall be an
action or proceeding to enforce such provision or for specific performance.

          (f) For the purposes of this Article, assignment and subletting shall include any sale,
exchange or disposition of more than fifty percent (50%) of seller’s shares, partnership or
ownership interests or any change of more than fifty percent (50%) of ownership, if Tenant is not
an individual.

          (g) If this Lease is assigned, sublet or if the Demised Premises or any part thereof be
underlet or occupied by any party other than Tenant without Owner’s written permission, Owner may,
in addition to any other remedy provided to Owner under this Lease or by law, after default by
Tenant, collect Rent from the assignee, sublessee, undertenant or occupant, and apply the net
amount collected to the Rent herein reserved. No assignment, subletting, underletting, occupancy
or collection shall be deemed a waiver of the provisions hereof, the acceptance of the assignee,
sublessee, undertenant or occupant as Tenant, or a release of Tenant from the further performance
by or enforcement upon Tenant of covenants herein contained, and shall not prevent Owner from
commencing an action or proceeding to terminate the prime Tenant’s Lease and evict the prime Tenant
from the subject premises. Such a termination and eviction action or proceeding shall be based
upon the illegal assignment, subletting or occupancy by someone other than the Tenant. The
acceptance of Rent or other payments to Owner from the assignee, sublessee, undertenant or occupant
shall not in any way be construed to relieve Tenant from obtaining the express written consent of
Owner for such assignment, sublet or underletting and shall in no way be construed as acceptance
and/or acknowledgment of such action or person, nor shall it confer any rights upon such person.

22

 

          (h) Notwithstanding anything herein to the contrary contained in this Article or in this
Lease, Tenant expressly acknowledges and agrees that any proposed subleases to different
individuals and/or entities for portions of the Demised Premises, which portions together would
constitute the entirety of the Demised Premises shall not be considered a request to sublet the
entire Demised Premises and that Owner shall, for each such proposed sublease, have all the rights
and remedies provided for in this Lease. By way of example, but in no way limiting any of Owner’s
rights hereunder, should Tenant propose to sublease a portion of the Demised Premises to an
individual or entity (Sublease #1) and should Tenant, simultaneously or shortly thereafter, propose
to sublease the remainder of the Demised Premises to Owner (Sublease #2), then, with respect to
Sublease #1 and Sublease #2, Owner shall have the right to (i) cancel this Lease in accordance with
II(a)(1) hereof; (ii) notify Tenant, in accordance with II(b), of Owner’s election to require
Tenant to sublease either or both of the portions of the Demised Premises desired to be sublet
under Sublease #1 or Sublease #2 to Owner; or (iii) approve one of the proposed subleases without
any obligation to approve the other sublease.

          (i) In the event of such subletting or assignment, Tenant shall pay to Owner Five Hundred
Dollars ($500.00) as a fee for same, as well as all reasonable attorneys costs.

III

          If this Lease is assigned and Owner consents to such assignment, Tenant covenants and agrees
that the term, covenants and conditions of this Lease may be changed, altered or modified in any
manner whatsoever by Owner and the assignee without prior written consent of Tenant, that no such
change, alteration or modification shall release Tenant from the performance by it of any of the
terms, covenant and conditions on its part to be performed under this Lease. Any such change,
alteration or modification which would have the effect of increasing or enlarging Tenant’s
obligations or liabilities under this Lease shall not, to the extent only such increase or
enlargement, be binding upon Tenant.

ARTICLE 70 — INTERCOM

          During the term of this Lease, Tenant shall pay as Additional Rent the sum of $10.00 per month
for maintenance of the exterior buzzer and intercom system. If the system remains out of order for
an unreasonable period of time, Tenant shall not be responsible for intercom charges during such
time.

ARTICLE 71 — REAL ESTATE TAX ESCALATION

          71.1 As used herein:

          71.1.1 The term “Escalation Year” shall mean each calendar year which shall include any part
of the term.

          71.1.2 The term “Taxes” shall mean all real estate taxes, assessments (special or otherwise),
sewer rents, rates and charges, county taxes or any other governmental charge of a similar or
dissimilar nature, whether general, special, ordinary or extraordinary, foreseen or unforeseen,
which may be levied, assessed or imposed upon or with respect to all or any part of the land
(“Land”) upon which the Building is constructed or the Building by the City or County of New York
or any other taxing authority. If by law any assessment may be divided and paid in annual
installments, then, for the purposes of this Article (a) such assessment shall be deemed to have
been so divided upon application made thirty (30) days after the date of entry, whether before or
after the date hereof, (b) such assessment shall be deemed payable in the maximum number of annual
installments permitted by law, and (c) there shall be deemed included in Taxes for each Escalation
Year the annual installment of such assessment becoming payable during such Escalation Year,
together with interest payable during such Escalation Year on such annual installment and on all
installments thereafter becoming due as provided by law, all as if such assessment had been so
divided. If at any time during the Term the methods of taxation prevailing on the date hereof
shall be altered so that in lieu of or as an addition to or as a substitute for the whole or any
part of the Taxes now levied, assessed or imposed (a) a tax, assessment, levy, imposition or charge
based on the rents received therefrom whether or not wholly or partially as a capital levy or
otherwise, or (b) a tax, assessment, levy, imposition or charges measured by or based in whole or
in part upon all or any part of the Land or the Building and imposed on Owner, or (c) a license fee
measured by the Rent payable by Tenant to

23

 

Owner, or (d) any other tax, levy, imposition, charge or license fee, however described or imposed,
then all such taxes, assessments, levies, impositions, charges or license fees or the part thereof
so measured or based, shall be deemed to be Taxes.

     71.1.3 The term “Owner’s Basic Tax Liability” shall mean the Taxes attributable to the Land
and the Building for the New York City fiscal year 2005/2006, and “Owner’s Base Year” shall mean
the New York City fiscal year 2005/2006, commencing on July 1st, 2005.

          71.1.4 The term “Tenant’s Proportionate Share” shall mean two point five (2.5%) percent.

          71.2 If Taxes payable in any Escalation Year falling wholly or partially within the Term shall
be in an amount constituting an increase above Owner’s Basic Tax Liability, Tenant shall pay as
Additional Rent for such Escalation Year a sum equal to the Tenant’s Proportionate Share of the
amount by which Taxes for such Escalation Year exceed Owner’s Basic Tax Liability. Tenant shall, if
Owner so elects, pay its proportionate share of taxes in advance as Additional Rent.

          71.3 If by any reason of any law, statute, regulation or agreement with a taxing or other
governmental authority (including, without limitation, a “J-51 Program”) any part of the Taxes
shall be reduced, i.e., suspended or abated, then there shall be subtracted from Taxes for purposes
of determining the Additional Rent payable hereunder, an amount equal to the decrease in such taxes
due to such suspension or abatement.

          71.4 If, as a result of any application or proceeding brought by or on behalf of Owner for
reduction in the assessed valuation of the Real Property affecting any Escalation Year commencing
after Owner’s Base Year, there shall be a decrease in Taxes for any such Escalation Year with
respect to which Owner shall have previously rendered an Owner’s Statement, the Owner’s Statement
next following such decrease shall include an adjustment for such Escalation Year reflecting such
decrease in Taxes, less all costs and expenses, including without limitation, any attorneys’ fees
incurred by Owner in connection with such application or proceeding with respect to any Escalation
Year occurring after Owner’s Base Year.

ARTICLE 72 — MISCELLANEOUS

          This Lease embodies the entire agreement between Owner and Tenant. Any change, addition,
waiver, release or discharge of this Lease shall be ineffective unless signed by the party against
whom such change, addition, waiver, release or discharge is sought to be enforced. Each right,
power and remedy of Owner provided for in this Lease or now or hereafter existing at law, in
equity, by statute or otherwise shall be cumulative and concurrent and shall be in addition to
every other right, power or remedy provided for herein or now or hereafter existing at law, in
equity, by statute or otherwise, and the exercise or beginning of the exercise by Owner of any one
or more of such rights, powers or remedies shall not preclude the simultaneous or later exercise by
Owner of any or all such other rights, power or remedies.

          73. Tenant shall be allowed (4) four listings in the Building standard lobby directory and
three (3) listings in the Building standard hallway directory, for which Tenant agrees to reimburse
Owner. All signs must conform to the Building standard. In no event shall Tenant permit any sign
to be affixed directly to the entrance door to the Demised Premises.

          74. If electric current being supplied to Tenant is by the public utility corporation serving
the part of the city where the Building is located, Tenant agrees to purchase same from such public
utility corporation. If electric current is supplied by Owner, Tenant covenants and agrees to
purchase same from Owner or Owner’s designated agent at charges, terms and rates set, from time to
time, during the term of this Lease by Owner but not more than those specified in the service
classification in effect on January 1, 1970 pursuant to which Owner then purchased electric current
from the public utility corporation serving the part of the city where the Building is located.
Said charges may be revised by Owner in order to maintain the return to Owner produced under the
foregoing in the event that the Public Service Commission approves changes in service
classifications, terms, rates or charges for such public utility during the term hereof. Where
more than one meter measures the service of Tenant in the Building, the service rendered through
each meter may be computed and billed separately in accordance with the rates herein. Bills
therefor shall be rendered at such times as Owner may elect. In the event that such bills are not
paid within five (5) days

24

 

after the same are rendered, Owner may without further notice discontinue the service of electric
current to the Demised Premises without releasing Tenant from any liability under this Lease and
without Owner or Owner’s agent incurring any liability for any damage or loss sustained by Tenant
by such discontinuance of service. Owner shall not be liable or responsible to Tenant for any
loss or damage or expense which Tenant may sustain or incur if either the quantity or character of
electric services is changed or is no longer available or suitable for Tenant’s requirements. Any
riser or risers to supply Tenant’s electrical requirements, upon written request of Tenant, will be
installed by Owner, at the sole cost and expense of Tenant, if in Owner’s sole judgment the same
are necessary and will not cause permanent damage or injury to the Building or the Demised Premises
or cause or create a dangerous or hazardous condition or entail excessive or unreasonable
alterations, repairs or expense or interfere with or disturb other tenants or occupants. In
addition to the installation of such riser or risers, Owner will also, at the sole cost and expense
of Tenant, install all other equipment proper and necessary in connection therewith subject to the
aforesaid terms and conditions. Tenant covenants and agrees that at all times its use of electric
current shall never exceed the capacity of existing feeders to the Building or the risers or wiring
installations. It is further covenanted and agreed by Tenant that all the aforesaid costs and
expenses shall be paid by Tenant to Owner within five (5) days after rendition of any bill or
statement to Tenant therefor. Owner may discontinue any of the aforesaid services upon thirty (30)
days notice to Tenant without being liable to Tenant therefor or without in any way affecting this
Lease or the liability of Tenant hereunder or causing a diminution of Rent, and the same shall not
be deemed to be a lessening or diminution of services within the meaning of any law, rule or
regulation now or hereafter enacted, promulgated or issued. In the event Owner gives such notice
of discontinuance, Owner shall permit Tenant to receive such service direct from said public
utility corporation, in which event, Tenant will at its own cost and expense furnish and install
all risers, service wiring, and switches that may be necessary for such installation and required
by the public utility company, and will at its own cost and expense maintain and keep in good
repair all such risers, wiring and switches. Tenant shall make no alterations or additions to the
electric equipment and/or appliances without the prior written consent of Owner in each instance.
Rigid conduit only will be allowed. If any tax is imposed upon Owner’s receipts from the sale or
resale of electric energy or gas or telephone service to Tenant by any Federal, State or Municipal
Authority, Tenant covenants and agrees that where permitted by law, Tenant’s pro rata share of such
taxes shall be passed on to and included in the bill of and paid by Tenant to Owner. Any sums due
and payable to Owner under this Article shall be collectible as Additional Rent.

          75. Tenant agrees to pay a Building Security charge of $40.00 per month.

          76. Owner’s Work within the Demised Premises shall consist of the following:

	 	a.	 	Construct three (3) offices, one
conference room with glass and sheetrock walls, one reception
area enclosure and one mechanical/storage room, including
Building standard interior doors, as indicated on the attached
“Exhibit B”;
	 
	 	b.	 	Provide and install Building
standard lighting and electrical outlets throughout the Demised
Premises;
	 
	 	c.	 	Paint newly constructed offices,
rooms and enclosure, Building standard white; and
	 
	 	d.	 	Provide and install three (3)
window air conditioning units to cool the Demised Premises as
indicated on the attached “Exhibit B”, which units shall remain
in the Demised Premises and shall be considered leasehold
improvements at the expiration of this Lease or upon vacating of
the Demised Premises by Tenant.

               If Owner’s Work has not been substantially completed by May 1st, 2005, Tenant shall
receive one day of credit for each day until Owner’s Work has been substantially completed and
Owner has notified Tenant of same. In the event Owner is unable to complete its work due to delays
caused by Tenant or its agents or contractors, then the date of completion of Owner’s Work shall be
adjusted by deducting one day for each day of such delay.

ARTICLE
77 — MITIGATION OF DAMAGES

          Owner shall use reasonable efforts to mitigate its damages in the event of Tenant’s default
and a termination of this Lease, provided however, it is agreed that (i) Tenant shall reasonably
cooperate with Owner in any such efforts, (ii) Owner shall have no obligation to lease or relet the
Demised Premises at less than a market

25

 

Rent for a term of less than five (5) years, pursuant to Owner’s standard Lease form, and (iii) in
no event shall Owner be required to lease or relet the Demised Premises before any other available
space or unit in the Building.

ARTICLE
78 — “GOOD GUY” GUARANTEE OF LEASE

     In order to induce the aforesaid Owner to enter into this Lease and for other valuable
considerations, the receipt of which is hereby acknowledged, JOHN M. TORRENS, an individual
residing at 6368 Seneca Turnpike, Jamestown, NY 13078, whose Social Security number is ####-##-####
(“Guarantor”), hereby makes the following guarantee and agreement with and in favor of Owner and
its respective legal representations and assigns. The following personal guarantee is the only
provision of the Lease to which the Guarantor is personally liable, unless provided for elsewhere
in the Lease, as all other provisions, clauses and terms of this Lease are binding upon the Tenant.

       A. The undersigned guarantees to Owner, its successors and assigns, that he will advise Owner
of Tenant’s intention to vacate the Demised Premises a minimum of four (4) months in advance and
that he will pay to Owner all Minimum Rent, Additional Rent and any and all other charges that have
accrued or may accrue under the terms of the Lease (hereinafter collectively referred to as
“Accrued Rent”), to the latest date that Tenant and its assigns and sublessees, if any, will have
completely performed the following:

          1. Vacated and surrendered the Demised Premises in broom clean condition to Owner pursuant to
the terms of the Lease, and

          2. Delivered the keys to the Demised Premises to Owner, and

          3. Paid to Owner all Accrued Rent to and including the date which is the later of (a) the
actual receipt by Owner of said Accrued Rent, (b) the surrender of the Demised Premises, or (c)
receipt by Owner of the keys to the Demised Premises.

     B. The undersigned guarantees to Owner, its successors and assigns that he will pay to Owner
any damages, including legal fees, suffered or incurred by Owner as a result of Tenant holding over
in the Demised Premises after the expiration or sooner termination of the term of this Lease.

     C. It is agreed that any security deposited under Article 32 of the Lease shall not be
computed as a deduction from any amount payable by Tenant or Guarantor under the terms of this
Guarantee of Lease.

     D. This Guarantee is absolute and unconditional and is a Guarantee of payment and not of
collection. The parties hereto waive all notice of nonpayment, nonperformance, nonobservance or
proof, or notice, or demand, whereby to charge the undersigned therefor, all of which the
undersigned expressly waives, and expressly agrees that the validity of this Guarantee, and the
obligation of the Guarantor hereto shall in no wise be terminated, affected or impaired by reason
of the assertion by Owner against Tenant of any of the rights or remedies reserved to Owner
pursuant to the performance of the within Lease. The undersigned further covenants and agrees that
this Guarantee shall remain and continue in full force and effect as to any renewal, modification
or extension of this Lease and during any period when Tenant is occupying the premises as a
“statutory tenant” (including, but not limited to a month-to-month tenancy). As a further
inducement to Owner to make this Lease and in consideration thereof, Owner and the undersigned
covenant and agree that in any action or proceeding brought by either Owner or the undersigned
against the other on any matters whatsoever arising out of, under, or by virtue of the terms of
this Lease or of this Guarantee, that Owner and the undersigned shall and do hereby waive trial by
jury.

     E. This Guarantee shall be construed in accordance with the Laws of the State of New York.

     IN WITNESS WHEREOF the undersigned has set his hand this 13th day of April, 2005.

	 	 	 	 	 
	 	 	 
	 	              /s/ John M. Torrens
 	 
	 	JOHN M. TORRENS 	 
	 	 	 

26

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]