Document:

Exhibit 10.41

 

LEASE NO. X7550

 

LEASE
BETWEEN

 

THE
CITY OF NEW YORK

DEPARTMENT
OF CITYWIDE ADMINISTRATIVE SERVICES

1
CENTRE STREET, 20TH FLOOR NORTH

NEW
YORK, NEW YORK 10007

 

&

 

LIVINGSTON
ACQUISITION, LLC 

450
PARK AVENUE, 28TH FLOOR

NEW
YORK, NEW YORK 10022

 

Premises:
240-250 Livingston Street (Block 165, Lot 22)

Borough
of Brooklyn

Floors
4, 5, 6, 7 and 8 and portions of basement and sub-basement

 

and

 

230-234
Livingston Street (Block 165, Lots 17, 18, 19 and 58)

Borough
of Brooklyn

parking
lot

 

Approximately
187,145 rentable square feet of internal space and

18,500
square feet of parking lot space

to
be used by the

Human
Resources Administration and the Department of Environmental Protection

 

FINAL

July 1, 1999

 

 

 

     

     

    

 

TABLE
OF CONTENTS

 

	ARTICLE 1	TERM	5
	 	 	 
	ARTICLE 2	RENT	6
	 	 	 
	ARTICLE 3	TENANT’S RIGHT TO TERMINATE	12
	 	 	 
	ARTICLE 4	TAX AND OPERATING EXPENSE ESCALATIONS	14
	 	 	 
	ARTICLE 5	LANDLORD’S INTEREST IN PREMISES	26
	 	 	 
	ARTICLE 5A	TENANT’S OPTION W/RESPECT TO ORIGINAL STORAGE SPACE	27
	 	 	 
	ARTICLE 6	WORK; SUBSTANTIAL COMPLETION	27
	 	 	 
	ARTICLE 7	CERTIFICATE OF OCCUPANCY; COMPLIANCE WITH LAWS	46
	 	 	 
	ARTICLE 8 	REAL ESTATE TAXES, ASSESSMENTS, WATER RATES, SEWER RENTS, ARREARS	50
	 	 	 
	ARTICLE 9	LANDLORD’S SERVICES	51
	 	 	 
	ARTICLE 10	TENANT’S SERVICES	55
	 	 	 
	ARTICLE 11	ALTERATIONS BY TENANT	56
	 	 	 
	ARTICLE 12	END OF TERM	56
	 	 	 
	ARTICLE 13	REPAIRS	57
	 	 	 
	ARTICLE 14	CONDEMNATION	59
	 	 	 
	ARTICLE 15	DESTRUCTION BY FIRE OR OTHER CASUALTY	61
	 	 	 
	ARTICLE 16	NO EMPLOYEE OF CITY HAS ANY INTEREST IN LEASE	63
	 	 	 
	ARTICLE 17	QUIET ENJOYMENT	63
	 	 	 
	ARTICLE 18	ACCESS BY DISABLED PERSONS	63
	 	 	 
	ARTICLE 19	SUBORDINATION AND NON-DISTURBANCE	64
	 	 	 
	ARTICLE 20	TENANT NOT A HOLDOVER TENANT	65

   

     

     

    

  

	ARTICLE 21	NOTICES	65
	 	 	 
	ARTICLE 22	FORCE MAJEURE	67
	 	 	 
	ARTICLE 23	SAVE HARMLESS	68
	 	 	 
	ARTICLE 24	INVESTIGATIONS	68
	 	 	 
	ARTICLE 25	SIGNIFICANT RELATED PARTY TRANSACTIONS	72
	 	 	 
	ARTICLE 26	ASBESTOS	73
	 	 	 
	ARTICLE 27	LANDLORD’S REPRESENTATIONS	73
	 	 	 
	ARTICLE 28	NO WAIVER	74
	 	 	 
	ARTICLE 29	EXCULPATORY CLAUSE	74
	 	 	 
	ARTICLE 30	LEASE ENTIRE AGREEMENT	75
	 	 	 
	ARTICLE 31	APPLICABLE LAW	75
	 	 	 
	ARTICLE 32	ESTOPPEL CERTIFICATE	75
	 	 	 
	ARTICLE 33	MISCELLANEOUS	76

 

    -ii- 

     

    

  

EXHIBITS
AND SCHEDULES

 

	Exhibit A	New Storage Space
	 	 
	Exhibit A-1	Original Storage Space
	 	 
	Exhibit B	Certified Public Accountant’s
    Report (Expense Schedule)
	 	 
	Exhibit C	Preliminary Plans
	 	 
	Exhibit D	Guide for Design Consultant
	 	 
	Exhibit E	Intentionally Omitted
	 	 
	Exhibit F	Certificates of Occupancy
	 	 
	Exhibit G	Preventive Maintenance Measures
	 	 
	Exhibit H	Subordination, Nondisturbance and Attornment Agreement
	 	 
	Exhibit I	COSH ACM Report
	 	 
	Schedule 1	Amortization of brokerage commission—Termination Payment under Article 3

 

    -iii- 

     

    

  

THE
CITY OF NEW YORK

DEPARTMENT
OF CITYWIDE ADMINISTRATIVE SERVICES

DIVISION
OF REAL ESTATE SERVICES

1
CENTRE STREET, 20TH FLOOR NORTH

NEW
YORK, NEW YORK 10007

 

AGREEMENT
OF LEASE made as of the ____ day of ________, 1999, between LIVINGSTON ACQUISITION, LLC, a Delaware limited liability
company, whose address is c/o Blackacre Capital Management, LLC, 450 Park Avenue, 28th floor, New York, New York 10022, hereinafter
designated as Landlord, and THE CITY OF NEW YORK, a municipal corporation, acting through the Department of Citywide Administrative
Services, with an address at 1 Centre Street, 20th Floor North, New York, New York 10007, hereinafter designated as Tenant.

 

WITNESETH:

 

WHEREAS,
the parties hereto desire to enter into a lease of approximately 143,771 rentable square feet of office space together with 1,905
rentable square feet of ancillary lobby space, approximately 19,340 rentable square feet of sub-basement space and 22,129 rentable
square feet of basement space, and approximately 18,500 square feet of parking lot space, on the terms and conditions contained
herein (the “Lease”); and

 

WHEREAS,
this Lease is subject to public hearing and Mayoral approval pursuant to §824 of the New York City Charter, said hearing to
be scheduled subsequent to the execution by Landlord of this Lease (the “Mayoral Approval”); and

 

     

     

    

 

WHEREAS, this Lease may be executed
by the Deputy Commissioner of the Department of City wide Administrative Services after issuance of the Mayoral Approval and subject
to approval as to form (the “Form Approval”) by the Corporation Counsel of the City of New York (the Mayoral Approval
and the Form Approval being collectively referred to as the ‘‘Approvals”); and

 

WHEREAS, Blackacre Capital Group,
L.P. (Blackacre Capital”), the sole member of Landlord, by consent dated as of June 30, 1999 authorized the execution of
this Lease by Howard M. Glatzer, as Vice President of Blackacre Capital Management Corp., the General Partner of Blackacre Capital;
and

 

WHEREAS, Tenant hereby represents
and warrants to Landlord that:

 

1. Tenant is a municipal corporation, duly
organized, validly existing and in good standing under the laws of the State of New York.

 

2. Tenant has the full right and authority
to enter into this Lease; and

 

3. The execution and delivery and performance
of this Lease by Tenant (a) has been duly authorized, (b) does not require any approvals other than those hereinabove set forth,
(c) does not conflict with the provisions of any instrument to which Tenant is a party or by which Tenant is bound, and (d) constitutes
a valid, legal and binding obligation of Tenant.

 

    	 	-2-	 

     

    

  

NOW, THEREFORE, subject to the issuance
of the Approvals, Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the following described premises (collectively,
the “Demised Premises”): (i) an agreed 143,771 rentable square feet of office space (the “Office Space”),
consisting of the entire rentable area of the fourth, fifth, sixth, seventh and eighth floors (respectively, “Floor 4,”
“Floor 5,” “Floor 6,” “Floor 7 and “Floor 8”, each such floor being referred to as a
“Floor”) together with an agreed 1,905 rentable square feet of ancillary lobby space (the “Lobby Space”),
of the building (the “Building”) located at 240/250 Livingston Street (Block 165, Lot 22) in the borough of Brooklyn
(each Floor containing an agreed 28,754.2 rentable square feet), (ii) an agreed 19,340 rentable square feet of sub-basement space
(the “ New Storage Space”) in the Building as shown hatched on Exhibit A annexed hereto, (iii) an agreed 22,129 rentable
square feet of existing basement storage space at the Building (the “Original Storage Space”)as shown hatched on Exhibit
A-1 annexed hereto, and (iv) an agreed 18,500 square feet of parking lot space, constituting the entire parking lot located at
230-234 Livingston Street (Block 165, Lots 17, 18,19 and 58) and adjacent to the Building (the “Parking Lot”) or substitute
parking lot space (the “Substitute Parking Space”) as further described and provided for in Section (P) of Article
6 below.

 

The Office Space shall be used by the Human
Resources Administration (“HRA”), Division of Income Support/Eligibility Verification Review and the Department of
Environmental Protection (“DEP”), Bureau of Water Supply only for general and administrative offices and ancillary
storage space, or for such other similar general office or administrative office use as the Commissioner of Citywide Administrative
Services may determine, and for no other purpose. The Lobby Space shall be used, in conjunction with Landlord and other tenants
of the Building, for access to the Office Space, and for no other purpose. The Original Storage Space and the New Storage Space
shall be used only for storage purposes incidental to the use and occupancy of the Office Space, and for no other purpose. The
Parking Lot shall be used only for the parking of vehicles incidental to the use and occupancy of the Office Space, and for no
other purpose.

 

    	 	-3-	 

     

    

  

Anything herein to the contrary notwithstanding,
the Demised Premises shall not be used or occupied (i) to conduct a school, employment office or employment training facility,
except in connection with HRA’s and/or DEP’s programs in the Demised Premises (ii) as a drug, alcohol or other type
of substance abuse clinic or counseling service, (iii) as a probation office, (iv) by, or as a facility servicing, the criminal
justice system, (v) in connection with providing or administering health care services, (vi) as a child-care facility other than
an incidental use and service for clients visiting the respective offices of HRA and DEP in the Demised Premises, (vii) for the
preparation or service of food or beverages, (viii) for the holding of public hearings, (ix) for the distribution of public benefits
(including, without limitation, welfare benefits), except in connection with the HRA and DEP programs in the Demised Premises referred
to above, (x) for the storage for purpose of sale of any alcoholic beverage in the Demised Premises; (xi) for the storage for retail
sale of any product or material in the Demised Premises; (xii) for the conduct of a manufacturing, printing or electronic data
processing business, except that Tenant may operate business office reproducing equipment, electronic data processing equipment
and other business machines for Tenant’s own requirements; (xiii) for the rendition of any health or related services, conduct
of a school or conduct of any business which results in the presence of the general public in the Demised Premises ( except in
connection with the intended business and use by HRA and DEP of the Demised Premises referred to above); (xiv) for an employment
agency or executive search firm; (xv) to conduct any public auction, gathering, meeting or exhibition; (xvi) for the occupancy
of a foreign governmental or quasi-governmental body, agency or department or any authority or other entity which is affiliated
therewith or controlled thereby; or (xvii) for any other purpose not reasonably consistent with the character of the Building.

 

    	 	-4-	 

     

    

  

The agreed rentable square footage of the
Demised Premises, Tenant’s Proportionate Share of Taxes and Tenant’s Proportionate Share of Operating Expenses (as
such terms are hereinafter defined), with respect to the entire Demised Premises and as allocable to the total Office Space and
Lobby Space, the New Storage Space and the Original Storage Space, the Parking Lot and each Floor, have been verified by the Bureau
of Space Design of the Division of Real Estate Services (“DRES”) of the Department of City wide Administrative Services
(“DCAS”), and are mutually agreed to by the parties (as set forth herein).

 

ARTICLE
1

 

TERM

 

(A)         The
term of this Lease for the Original Storage Space (“OSS Term”) is twenty-one (21) years, from January 1, 1998 ( OSS
Commencement Date”) through December 31, 2018, unless the OSS Term shall be extended or sooner end pursuant to any of the
terms, covenants or conditions of this Lease or pursuant to law.

 

(B)         The
term of this Lease for the Office Space, Lobby Space, New Storage Space and Parking Lot (the “ Term”) is twenty (20)
years, more or less, commencing on the Commencement Date (as defined in Section (C) hereinbelow) and expiring at midnight on the
twentieth (20th) anniversary of the Last Portion Commencement Date (as defined in Section (C) hereinbelow) (the “Expiration
Date”), unless the Term shall sooner end pursuant to any of the terms, covenants or conditions of this Lease or pursuant
to law.

 

(C)         The
commencement date of this Lease (the “Commencement Date”) shall be the Portion Commencement Date (as hereinafter defined
in Section 6(0) hereinbelow) for Portion 1. The Portion Commencement Dale for each subsequent Portion shall be as provided in Section
6 (O) hereinbelow. The “Last Portion Commencement Date” shall be the latest to occur of the several Portion Commencement
Dates.

 

    	 	-5-	 

     

    

  

(D)         Within
ten (10) business days after request of either party at any time subsequent to the Last Portion Commencement Date, Landlord and
Tenant shall execute, acknowledge and deliver to each other an agreement setting forth the Commencement Date, each Portion Commencement
Date, the annual periods which constitute the First Lease Year and each subsequent Lease Year and the Expiration Date, but the
failure to execute such an agreement shall not affect any of such dates and/or periods.

 

ARTICLE
2

 

RENT

 

(A)         The
“Base Rent” for each portion of the Demised Premises (“Portion”) shall commence on the Portion Commencement
Date therefor, except for the Original Storage Space for which Base Rent shall commence retroactively to the OSS Commencement Date
and with respect to which past due amounts shall be paid within sixty (60) days of the date this Lease is executed by Tenant (the
“Lease Execution Date”). Amounts due under this Article after the Lease Execution Date with respect to the Original
Storage Space shall be paid on a regular monthly basis as herein provided.

 

Portion I consists of Floor 8, the Parking
Lot and an undivided 1/5 of the Lobby Space. Portion 2 consists of any two (2) of the remaining Floors of Office Space, an undivided
2/5 of the Lobby Space and the New Storage Space. Portion 3 consists of the remaining two (2) Floors of Office Space and the remaining
undivided 2/5 of the Lobby Space. Portion 4 is the Original Storage Space. The term “Lease Year” means (i) the portion
of a year commencing on the Commencement Date and ending on the day preceding the Last Portion Commencement Date (“Partial
Lease Year”), (ii) the twelve (12) month period beginning on the day following the end of the Partial Lease Year (“First
Lease Year”), and (iii) each subsequent twelve-month period during the Term successively following the end of the First Lease
Year.

 

    	 	-6-	 

     

    

  

(B)         Base
Rent for each Floor (which shall include Base Rent allocable to 1/5 of the Lobby Space) is as follows:

 

(1)         For
the period beginning on the Portion Commencement Date of the Portion of which the Floor is a part and ending on the last day of
the third (3rd) Lease Year (“First Office Rent Period”) - $407,892.80 per annum ($2,039,464.00 per annum for the entire
Office Space and Lobby Space);

 

(2)         for
the period beginning on the day following the end of the First Office Rent Period and ending on the last day of the sixth (6th)
Lease Year (“Second Office Rent Period”) - $456,839.92 per annum ($2,284,199.60 per annum for the entire Office Space
and Lobby Space):

 

(3)         for
the period beginning on the day following the end of the Second Office Rent Period and ending on the last day of the ninth (9th)
Lease Year (“Third Office Rent Period”) - $511,660.70 per annum ($2,558,303.50 per annum for the entire Office Space
and Lobby Space):

 

(4)         for
the period beginning on the day following the end of the Third Office Rent Period and ending on the last day of the twelfth (12th)
Lease Year (“Fourth Office Rent Period”) - $573,059.98 per annum ($2,865,299.90 per annum for the entire Office Space
and Lobby Space):

 

(5)         for
the period beginning on the day following the end of the Fourth Office Rent Period and ending on the last day of the fifteenth
(15th) Lease Year (“Fifth Office Rent Period”) - $641,827.16 per annum ($3,209,135.80 per annum for the entire Office
Space and Lobby Space): and

 

    	 	-7-	 

     

    

 

(6)         for
the period beginning on the day following the end of the Fifth Office Rent Period and ending on the Expiration Date - $718,846.40
per annum ($3,594,232.00 per annum for the entire Office Space and Lobby Space).

 

(C)         Base
Rent for the New Storage Space is as follows:

 

(1)         For
the period beginning on the Portion Commencement Date of Portion 2 and ending on the last day of the fifth (5th) Lease Year (“First
New Storage Rent Period”) - $96,700.00 per annum;

 

(2)         for
the period beginning on the day following the end of the First New Storage Rent Period and ending on the last day of the tenth
(10th) Lease Year (“Second New Storage Rent Period”) - $106,370.00 per annum;

 

(3)         for
the period beginning on the day following the end of the Second New Storage Rent Period and ending on the last day of the fifteenth
(15th) Lease Year (“Third New Storage Rent Period”) - $117,007.00 per annum; and

 

(4)         for
the period beginning on the day following the end of the Third New Storage Rent Period and ending on the Expiration Date - $128,707.70
per annum.

 

(D)         Base
Rent for the Original Storage Space is as follows:

 

(1)         For
the period beginning on the OSS Commencement Date (viz. January 1, 1998) and ending on the last day of the fifth (5th)
Lease Year (“First Original Storage Rent Period”)-$110,645.00 per annum;

 

(2)         for
the period beginning on the day following the end of the First Original Storage Rent Period and ending on the last day of the
tenth (10th) Lease Year (“Second Original Storage Rent Period”)-$121,709.50 per annum;

 

    	 	-8-	 

     

    

 

(3)         for
the period beginning on the day following the end of the Second Original Storage Rent Period and ending on the last day of the
fifteenth (15th) Lease Year (“Third Original Storage Rent Period”)-$133,880.45 per annum; and

 

(4)         for
the period beginning on the day following the end of the Third Original Storage Rent Period and ending on the Expiration Date-$147,157.85 per annum.

 

(E)         Base
Rent for the Parking Lot is as follows:

 

(1)         For
the period beginning on the Portion Commencement Date of Portion 1 and ending on the last day of the fourth (4th) Lease Year (“First
Parking Rent Period”) - $125,000.00 per annum;

 

(2)         for
the period beginning on the day following the end of the First Parking Rent Period and ending on the last day of the eighth (8th)
Lease Year (“Second Parking Rent Period”) - $150,000.00 per annum;

 

(3)         for
the period beginning on the day following the end of the Second Parking Rent Period and ending on the last day of the twelfth (12th)
Lease Year (“Third Parking Rent Period”) - $175,000.00 per annum;

 

(4)         for
the period beginning on the day following the end of the Third Parking Rent Period and ending on the last day of the sixteenth
(16th) Lease Year (“Fourth Parking Rent Period”) - $200,000.00 per annum; and

 

(5)         for
the period beginning on the day following the end of the Fourth Parking Rent Period and ending on the Expiration Date - $225,000.00
per annum.

 

    	 	-9-	 

     

    

 

(F)          (1)         Accordingly,
during the portion of the Term commencing with the First Lease Year and ending on the Expiration Date (the last day of the 20th
Lease Year), the Base Rent payable by Tenant to Landlord is as follows:

 

	Lease Year	 	Base Rent (per annum)	 
	1	 	$	2,371,809.00	 
	2	 	$	2,371,809.00	 
	3	 	$	2,371,809.00	 
	4	 	$	2,616,544.60	 
	5	 	$	2,641,544.60	 
	6	 	$	2,662,279.10	 
	7	 	$	2,936,383.00	 
	8	 	$	2,936,383.00	 
	9	 	$	2,961,383.00	 
	10	 	$	3,268,379.40	 
	11	 	$	3,291,187.35	 
	12	 	$	3,291,187.35	 
	13	 	$	3,660,023.25	 
	14	 	$	3,660,023.25	 
	15	 	$	3,660,023.25	 
	16	 	$	4,070,097.55	 
	17	 	$	4,095,097.55	 
	18	 	$	4,095,097.55	 
	19	 	$	4,095,097.55	 
	20	 	$	4,095,097.55	 

 

(2)         During
the Partial Lease Year, the components of the Base Rent, as and when applicable, are as follows:

 

    	 	-10-	 

     

    

 

	Portion 1	$532,892.80 per annum
	 	($44,407.73 per month)
	 	 
	Portion 2	$912,486.40 per annum
	 	($76,040.53 per month)
	 	 
	Portion 3	$815,785.60 per annum
	 	($67,982.13 per month)
	 	 
	Portion 4	$110,645.00 per annum
	 	($9,220.42) per month

 

(D)         All
other payments due to Landlord from Tenant under this Lease shall be considered “Additional Rent.” Base Rent and Additional
Rent shall be referred to sometimes as “rent” in this Lease. Base Rent shall be payable in equal monthly installments
at the end of each calendar month, provided that for the months in which each Portion Commencement Date and the Expiration Date
occur, Tenant shall pay only a pro rata share of the applicable monthly installment. All rent (Base Rent and Additional Rent) shall
be payable to Landlord’s managing agent (presently as set forth in the last sentence of this Section (F)) or to any party
or to any other address as may be designated by Landlord from time to time, by notice in the manner provided in Article 21 hereof.

 

All bills sent by Landlord to Tenant shall
have clearly reflected thereon the property, address, and block and lot for which the bill is being sent. All bills must be legible
and must contain the address to which the payment should be sent. The name, address, and telephone number of the Landlord’s
contact person for billing inquiries must be provided to Tenant in the manner designated in Article 21 hereof. The initial such
person is Cassius Earnest, c/o Williams Real Estate Co. Inc., 380 Madison Avenue, New York, New York 10017 (telephone number 716-3651).

 

    	 	-11-	 

     

    

 

ARTICLE
3

 

TENANT’S
RIGHT TO TERMINATE

 

(A)         Tenant
may by at least one (1) year’s prior written notice (“Termination Notice”) sent to Landlord, at any time on
or after the seventh (7th) anniversary of the Last Portion Commencement Date, time being of the essence, elect to terminate
this Lease as to a Termination Space (as hereinafter defined), effective on the date (“Early Termination Date”)
specified in the Termination Notice, which Early Termination Date may be no earlier than one (1) year after the date on which
the Termination Notice is received by Landlord. The Termination Notice must also specify the Termination Space to which the
Termination Notice is applicable. If Tenant properly exercises such right of termination, this Lease shall terminate with
respect to the Termination Space specified in the Termination Notice on the Early Termination Date, but such termination
shall, at Landlord’s option, be effective only if (1) on or before the Early Termination Date. Tenant vacates and
delivers possession of the Termination Space in the condition required by this Lease: (2) Tenant is not in material default
of a monetary obligation under this Lease after written notice to Tenant from Landlord pursuant to Article 33 (F) below and
expiration of any applicable grace period at the time Tenant sends the Termination Notice and on the Early Termination Date;
and (3) Tenant pays the Termination Payment (as hereinafter defined) no later than thirty (30) days following the Early
Termination Date, provided Landlord has provided Tenant with an invoice therefor in a timely manner and reflecting the
appropriate amount of the Termination Payment in accordance with the schedule referred to in Section (E) of this Article
3.

 

    	 	-12-	 

     

    

 

(B)         A
“Termination Space” is one of the following only:

 

(1)         The
entire Demised Premises, as then constituted; or

 

(2)         Floor
8 and an unsubdivided 1/5 of the Lobby Space; or

 

(3)         Floors
4, 5, 6 and 7, the unsubdivided balance of the Lobby Space, the New Storage Space and the Parking Lot, together; or

 

(4)         the
Original Storage Space.

 

(C)         If
this Lease is effectively terminated in part pursuant to Section (A) hereof (i.e., if the Termination Space as to which
this Lease had been terminated had not been the entire Demised Premises), then Tenant shall have the right to send a second Termination
Notice, on all of the terms and conditions set forth in Section (A) (including the time periods, Termination Payment, and conditions
to the effectiveness thereof), except that (1) the termination date (“Final Termination Date”) specified in such second
Termination Notice shall be no earlier than two (2) years after the Early Termination Date under the first Termination Notice;
and (2) the Termination Space under the second Termination Notice shall be the entire remaining Demised Premises.

 

(D)         Anything
herein to the contrary notwithstanding, and without affecting Tenant’s right to send a second Termination Notice under Section
(C) of this Article 3, Tenant may terminate this Lease solely with respect to the Original Storage Space by a Termination Notice
effective at any time on or after the eighth (8th) anniversary of the Last Portion Commencement Date. In the event of
such a termination, there shall be no Termination Payment.

 

(E)         The
“Termination Payment” is the unamortized amount, as of the applicable Termination Date, of that portion of the brokerage
commission payable only to C&W by Landlord under Article 33 Subsection (E) below with respect to this Lease and allocable,
on a pro rata basis based on Base Rent (as set forth in Article 2), to the applicable Termination Space, pursuant to the brokerage
commission agreement provided to Tenant under Article 33 (E) hereinbelow, all as set forth in Schedule 1 annexed hereto and made
a part hereof.

 

    	 	-13-	 

     

    

 

(F)         If
Tenant effectively exercises its right to terminate this Lease as to a Termination Space as set forth in this Article, then, effective
as of the applicable Termination Date, this Lease shall terminate as to the applicable Termination Space as if such Termination
Date were the Expiration Date therefor. If the Termination Space is not the entire Demised Premises, then, as of the Early Termination
Date, the Base Rent otherwise payable under this Lease shall be reduced by the Base Rent allocable to the Termination Space (calculated
on a per rentable square foot basis with respect to Office Space) and Tenant’s Proportionate Share ( as further defined in
Article 4 below) shall be reduced by subtracting therefrom 9.92% if the Termination Space includes Floor 8 and an undivided 1/5
of the Lobby Space, 46.28% if the Termination Space includes Floors 4. 5. 6 and 7 and the unsubdivided balance of the Lobby Space,
the New Storage Space and the Parking Lot and 7.2% if the Termination Space is or includes the Original Storage Space.

 

ARTICLE
4

 

TAX
AND OPERATING EXPENSE ESCALATIONS

 

Landlord and Tenant agree that in addition
to the Base Rent provided for in the preceding Articles of this Lease, Tenant shall pay, as Additional Rent, Tenant’s Proportionate
Share of Tax Payments and Operating Expense Escalation, as those terms are hereinafter defined. Paragraph I and II do not apply
to the Parking Lot, which is dealt with in Paragraph IV.

 

    	 	-14-	 

     

    

 

I.
(A)       BASE YEAR OPERATING EXPENSES: CONSUMER PRICE INDEX ADJUSTMENTS

 

(1)    “
Base Year Operating Expenses” shall mean the costs and expenses, i.e., ‘‘Operating Expenses,” reasonably
incurred or borne by Landlord with respect to the operation and maintenance of the Building, including, without limitation, but
without duplication and consistent with industry practice in similar buildings in Brooklyn, in the calendar year 2000 ( i.e., the”
Base Year”), in providing services to tenants and costs and expenses with respect to (a) salaries, wages, medical, surgical
and general welfare benefits (including, without limitation, group life insurance, hospitalization and disability benefits), pension
payments, all other fringe benefits of employees of Landlord engaged in the operation and maintenance of the Building of not higher
than the grade of Building manager (or Building superintendent) and below (collectively, “Building Employees”) and
all other payments made on behalf of or for the account of such employees; (b) payroll taxes and worker’s compensation insurance
for Building Employees; (c) uniforms and cleaning of uniforms for Building Employees; (d) steam and/or any other fuel; (e) the
cost of all heat, ventilation and air-conditioning furnished to the Building and all water (including related sewer charges) used
in the Building unless and to the extent separately paid for by Tenant or other tenants or occupants of the Building, and the cost
of all charges (including fuel adjustment factor, surcharges, and meter reading charges) for electricity furnished to the public,
common and service areas of the Building and/or used in the operation of all of the base building systems and service facilities
of the Building unless and to the extent separately paid for by Tenant or other tenants or occupants of the Building, including
any taxes on such utilities; (f) the cost of all charges for casualty and risk insurance, extended coverage; (g) the cost of all
building and cleaning supplies (for common areas for the Building and the charges for a telephone for the Building; (h) the cost
of all charges for window cleaning, cleaning (other than the interior of the Office Space which Tenant shall provide at its sole
cost and expense), exterminating, rubbish removal, security, alarm and all other service or maintenance contracts, unless and to
the extent separately paid for, or provided for, by Tenant or other tenants or occupants of the Building; (i) the cost of rentals
of capital equipment designed to result in savings or reductions in Base Year Operating Expenses; (j) all costs of lobby decorations
and interior and exterior landscape and plant care and maintenance; (k) all costs of painting and decorating the public, common
and service areas of the Building; (I) professional and consulting fees (including, without limitation, accounting fees but not
legal and attorneys’ fees) directly related to the maintenance and operation of the Building (including, without limitation,
preparation of statements and bills for escalations, and disputes with tenants that benefit other Building tenants and where Landlord
is successful), which are “out-of-pocket” expenses actually incurred by Landlord and which shall not be in excess of
fees for such items incurred by landlords of comparable office buildings in Brooklyn; (m) capital equipment, improvements or replacements
to the extent that the same (i) are expenses or regarded as deferred expenses under generally accepted accounting principles, or
(ii) are required by law, or (iii) actually result in a saving of Base Year Operating Expenses (in any of such cases, the cost
of the capital improvements shall be included in only to the extent of one tenth of their value (assuming an amortization period
of ten years) with an interest factor equal to two percent (2%) percent over the so-called “prime” or “base”
rate of Citibank, N.A. from time to time in effect) if they are incurred during the Base Year, provided, however that Base Building
Work and Tenant Work under Article 6 hereof shall not qualify in any respect for this item (m); (n) only to the extent of one tenth
of their value (assuming an amortization period of ten years) with an interest factor equal to two percent (2%) percent over the
so-called “prime” or “base” rate of Citibank, N.A. from time to time in effect, if they are incurred during
the Base Year, all expenses incurred by Landlord in connection with compliance with any law, rule, order, ordinance, regulation
or requirement of any governmental authority having or asserting jurisdiction or any order, rule, requirement or regulation of
any utility company, insurer of Landlord or the Board of Fire Underwriters (or successor organization), but excluding any such
costs incurred in complying with laws, rules, requirements, ordinances or regulations that (i)exist on the Lease Execution Date,
or (ii) are part of the Work under Article 6 below, or (iii) are Landlord’s responsibility under Article 7 below (ADA); (o)
the cost of all exterior window replacements and repair; (p) management fees; and (q) any and all other expenses reasonably incurred
by Landlord for operation and maintenance of the Land and Building which are customary for similar buildings in New York City.

 

    	 	-15-	 

     

    

 

(2)         Notwithstanding
anything in this Lease to the contrary, the following items shall be excluded from Base Year Operating Expenses: (a) the costs
of repairs or other work occasioned by fire, windstorm or other insured loss (and, if Landlord has failed to maintain such insurance
coverage as would be maintained by a reasonably prudent owner of similar property, then the costs of repairs or other work occasioned
by uninsured losses which would have been covered by such insurance), or by the exercise of eminent domain, or the cost of repairs
for which Tenant has reimbursed Landlord under any provision of this Lease, or which are to be performed at Landlord’s sole
cost and expense as expressly set forth in this Lease; (b) leasing commissions, rental concessions and lease buy-outs; (c) the
costs of renovating or otherwise improving or decorating, painting or redecorating space for tenants or other occupants of the
Building; (d) Landlord’s cost of electricity and other services and goods that are sold to tenants and for which Landlord
is entitled to be reimbursed by tenants as an additional charge or rental over and above the basic rent payable under the lease
with such tenant (or if provided on a so-called “rent inclusion” basis); (e) depreciation; (f) overhead and profit
increment paid to subsidiaries or affiliates of Landlord for services on or to the Building and amounts paid for services that
are not rendered pursuant to an arms length contract, to the extent only that the costs of such services exceed competitive costs
of such services; (g) interest on debt or amortization payments on any mortgage or mortgages, and rental under any ground or underlying
lease or leases; (h) Landlord’s general overhead and any other expense not related to the Building; (i) any compensation
paid to clerks, attendants, or other persons in commercial concessions operated by Landlord; (j) all items and services and goods
for which Tenant or any other person reimburses Landlord or pays third persons (other than pursuant to operating expense, porter’s
wage formula or like provisions); (k) wages, salaries and other compensation paid to employees of the Building above the grade
of Building manager (or Building superintendent); (1) professional fees allocable to preparation of leases and related instruments
(including, without limitation, guarantees, surrender agreements, lease amendments and consents to assignment or subletting) for
other tenants (or prospective tenants) and the enforcement of any such instrument (except as otherwise provided in subdivision
(l) (i) hereinabove); (m) advertising and promotional expenses with respect to leasing space in the Building; (n) Taxes and/or
Real Estate Taxes; (o) estate, inheritance, gift, franchise and income taxes not included in Taxes and/or Real Estate Taxes; (p)
all items that would be capitalized under generally accepted accounting principles except if expressly provided for in subdivision
(A)(l)(m) hereinabove; (q) all other items for which any tenant compensates Landlord hereunder so that no duplication of payments
shall occur, and (r)all other expenses which are to be borne by Landlord at its sole cost and expense under any applicable provision
of this Lease.

 

    	 	-16-	 

     

    

 

(3)         “Base
Year Operating Expenses” shall mean the Operating Expenses for the calendar year 2000 (the “Base Year”).

 

(4)         The
intent of the parties is that Tenant shall pay its proportionate share of increases in Base Year Operating Expenses (i.e., Operating
Expense Escalations) based on the Building being fully occupied. Accordingly, in determining the amount of Base Year Operating
Expenses, if less than one hundred percent (100%) of the Building rentable area shall have been occupied by tenant(s) at any time
during the Base Year, Base Year Operating Expenses shall be an amount equal to those Operating Expenses that would have been incurred
in the Building under the definition of Operating Expenses above set forth had such occupancy been one hundred percent (100%) throughout
the Base Year.

 

(5)         Landlord
shall be required to notify Tenant of any significant related party transactions the cost of which are included in the Base Year
Operating Expenses. When such transactions occur, the prices of the same must be in line with normal industry practice in Brooklyn
for similar types of buildings. Failure to notify Tenant of such related party transactions shall result in a disallowance of any
costs thereof that would otherwise be part of the Base Year Operating Expenses. If such related party transactions occurred and
were disclosed but it is established that the cost thereof was excessive, then such charges shall be disallowed to the extent they
exceed normal industry prices in Brooklyn for similar types of buildings.

 

    	 	-17-	 

     

    

 

(6)         No
later than July 1,2001, Landlord shall furnish to Tenant a schedule of Base Year Operating Expenses. Such schedule of Base Year
Operating Expenses must be prepared in a format no less detailed than the corresponding schedule which constitutes an exhibit
to the lease between Landlord and Tenant, dated as of January 1,1997, for space at 240- 250 Livingston Street, Brooklyn, New York
and which is annexed hereto as Exhibit B and made a part hereof. Such schedule of Base Year Operating Expenses must include a
statement signed by an executive of Landlord that avers that there is complete and accurate documentation in Landlord’s
or Landlord’s managing agent’s files to support each and every charge included in Base Year Operating Expenses. Landlord
must have supporting documents for each component of Base Year Operating Expense or any such component for which such documentation
is not furnished will be disallowed. Such schedule of Base Year Operating Expenses (“Expense Schedule”) shall
be accompanied by a report of Landlord’s Certified Public Accountant in the form attached hereto as part of Exhibit B.

 

(B) (1) (a)       “Price Index” shall mean The Consumer Price Index for U.S. City Average - All Urban Consumers
(1982-84 equals 100), issued by the Bureau of Labor Statistics of the United States Department of Labor.

 

(b)     “Base
Price Index” shall mean the Price Index for December, 1999.

 

(c)     “Operating
Year” shall mean each twelve (12) month period consecutively following the calendar year 2000, all or any part of which falls
within the Term.

 

(d)     “Index
Month” shall mean December, 2000 and the month of December in each successive Operating Year (so that the Index Month for
Operating Year 2001 shall be December. 2000, the Index Month for Operating Year 2002 shall be December, 2001, etc.).

 

    	 	-18-	 

     

    

 

(2)         “Operating
Expense Escalation” shall mean a sum which Tenant covenants and agrees to Landlord for each Operating Year commencing with
calendar year 2001, computed by multiplying (x) the sum representing the Base Year Operating Expenses by (y) the percentage, if
any, by which the Price Index, as published for the Index Month of the Operating Year in question exceeds the Base Price Index,
multiplied by (z) 63.4%,, which represents Tenant’s Proportionate Share of Operating Expenses under this Lease, assuming
Substantial Completion and/or delivery and/or occupancy by Tenant for the conduct of its business, of the entire Demised Premises
as provided hereinbelow in Article 6, but otherwise pro rata based on the percentages set forth in Section (F) of Article 3 herein.
(See example below for calculating the
Price Index change for a
sample Operating Year.)

 

(3)         Such
Operating Expense Escalation for every Operating Year shall be billed and paid as follows: Within two (2) months after the beginning
of any such Operating Year, Landlord shall deliver to Tenant a statement (hereinafter the “Expense Statement”) showing
the amount of such Operating Expense Escalation payable for the then current Operating Year (the “Amount’’),
which Amount shall be calculated by using the Price Index for the Index Month of the preceding Operating Year according to (2)
above. Tenant shall pay the Amount to Landlord in equal monthly installments in arrears on the last day of each and every month
during such Operating Year (except that the monthly installments for the months elapsing prior to the delivery of the Expense Statement
shall be payable with the monthly installment next accruing after the delivery of the Expense Statement).

 

(4)         Landlord
shall not be obliged to make any adjustments or recomputations, retroactive or otherwise, by reason of any revision which may later
be made in the figure of the Price Index first published for any month. The Price Index published for any Index Month shall, for
the purpose of this Section (A), be deemed no lower than the Base Price Index.

 

    	 	-19-	 

     

    

 

(5)         If
the Price Index ceases to use the 1982-84 average equaling 100 as the basis of calculation, then the Price Index shall be appropriately
adjusted to reflect the change in the Price Index from that in effect at the date of this Lease. If such Price Index shall no longer
be published by said Bureau, then any substitute or successor index published by said Bureau or other governmental agency of the
United States, and similarly adjusted as aforesaid, shall be used. If such Price Index (or a successor or substitute index similarly
adjusted) is not available, a reliable governmental or other reputable publication selected by Landlord and Tenant jointly and
evaluating the information theretofore used in determining the Price Index shall be used.

 

(6)         If
the Term ends on a day other than the last day of an Operating Year, Tenant’s liability under this Subparagraph (B) shall
be apportioned so that Tenant shall pay only such part of the sums required to be paid under this Subparagraph (B) that shall be
included in the Term.

 

(7)         Example
for calculating the Price Index change for Operating Year 2001.

 

	Index point change	 
	 	 
	CPI for December, 2000	140
	Less CPI for December, 1999	135
	Equals index point change	5
	 	 
	Percent Change	 
	 	 
	Index point difference	5
	Divided
    by CPI for December, 1999	135
	Equals	0.0370x100
	Equals percent change	3.70%

 

    	 	-20-	 

     

    

 

II.          REAL
ESTATE TAX ESCALATIONS

 

(A)         The
term “Taxes” and “Real Estate Taxes” as used herein, shall mean the real estate taxes and assessments (including
special assessments) on or with respect to the Building and the land on which it stands (“Land”) which are assessed,
levied, or imposed by any governmental authority having jurisdiction including, without limitation, (i) assessments made upon or
with respect to any “air” and “development” rights now or hereinafter appurtenant to or affecting the Land;
(ii) any fee, tax or charge imposed by any governmental authority for any vaults, vault space or other space within or outside
the boundaries of the Land; and (iii) any taxes or assessments levied after the date of this Lease in whole or in part for the
public benefits to the Land or the Building, including, without limitation, Business Improvement District taxes and assessments;
without taking into account any discount that Landlord may receive by virtue of any early payment of Taxes, in each case, calculated
as if the Land and Building were the only asset of Landlord; provided, that if because of any change in the taxation of real estate,
any other tax or assessment however denominated (including, without limitation any franchise, income, profit, sales, use, occupancy,
gross receipts or rental tax) is imposed upon Landlord or the owner of the Land or the Building, or the occupancy, rents or income
therefrom, in substitution for any of the foregoing Taxes, such other tax or assessment shall be deemed part of Taxes computed
as if Landlord’s sole asset were the Land and Building. Excluded from the foregoing enumerations of Taxes and Real Estate
Taxes will be (i) any income, franchise, inheritance, capital stock, excise, excess profits, occupancy or rent, gift, estate, payroll
or stamp taxes or foreign ownership or control taxes and any capital gains tax and deed tax or transfer tax imposed by Article
29 of the New York State Tax Law, and any mortgage recording tax imposed by Article 11 of the New York State Tax Law, and (ii)
any Taxes resulting from an increase of the assessed value of the Building attributable to additions to the Building which increase
the rentable area of the Building. As of the date hereof, to the best of Landlord’s knowledge, the only Taxes affecting the
Building and/or the Land are the real estate taxes payable to the City of New York.

 

    	 	-21-	 

     

    

 

(B)         Tenant
covenants and agrees that commencing as of July 1, 2001, Tenant shall pay to Landlord, as Additional Rent, an annual sum (the “Tax
Payment”) equal to the product of: (x) Tenant’s Proportionate Share ( 63.4% , assuming Substantial Completion
and/or delivery and/or occupancy by Tenant for the conduct of its business, of the entire Demised Premises as provided hereinbelow
in Article 6, but otherwise pro rata based on the percentages set forth in Section (F) of Article 3 herein,), and (y) the amount
by which the annual Real Estate Taxes for the current July 1 - June 30 period (each such period, a “Tax
Year”) exceed the amount of Real Estate Taxes finally imposed or assessed on the Land and Building (but not including
the Parking Lot, which is covered by Subsection (E) below )for the July 2000—June 2001 Tax Year (“Base
Taxes”). Tenant shall pay the Tax Payment in two (2) equal installments, each of which shall be due within thirty
(30) days after Landlord presents to Tenant a copy of an official Real Estate Tax bill from the applicable governmental authority.
The Tax Payment payable for the Tax Year during which the Term hereof expires shall be prorated based on the number of days of
the Term which fall within such Tax Year.

 

(C)         Appropriate
adjustment shall be made for any refund obtained by reason of a reduction in the assessed valuation made by the assessors or the
courts for any period falling within the Term, including with respect to Base Taxes. In calculating the amount of such adjustment,
Landlord may deduct therefrom, any expenses incurred by Landlord, or Landlord’s estate, including payments to consultants,
attorneys and appraisers, in contesting, or otherwise seeking a reduction of, the Taxes and Real Estate Taxes or assessed value
of the Land or Buildings by tax certiorari proceedings or otherwise; provided, however, that Landlord shall not deduct payments
to any consultant, attorney or appraiser for performing the same function as another consultant, attorney or appraiser for which
Landlord is deducting its costs. The original computations, as well as payments of Additional Rent, if any, under the provisions
of this Article, shall be based on the original assessed valuation with adjustments to be made if and when the Tax refund, if any,
has been paid to Landlord. All rights and obligations of the parties hereto respecting any Tax Payments shall survive the expiration
or earlier termination of the Term hereof.

 

    	 	-22-	 

     

    

 

(D)         If
the Base Taxes shall be reduced or increased as a result of protests of proceedings filed therefor, then the Base Taxes shall be
amended to the amount actually collectible by the City of New York, and all previously made Tax Payments shall be appropriately
adjusted and any additional payments or credits shall be due and payable within thirty (30) days after billed or credited by Landlord.
Landlord shall use best efforts to promptly notify Tenant in writing each time a tax assessment is challenged, but Landlord’s
failure to do so shall not affect the parties’ rights or obligations hereunder.

 

III.
RIGHT TO WITHHOLD AND AUDIT

 

(A)         If
Landlord fails to furnish any statements, schedules, forms (collectively “Statements”) under this Article relating
to Base Year Operating Expenses, Operating Expense Escalations or Real Estate Taxes or Tax Payments, Tenant may, after thirty (30)
days’ written notice to Landlord specifying the missing Statements and Landlord’s failure to furnish the missing Statements
within such thirty (30) day period, withhold all Additional Rent due and owing to Landlord, including but not limited to Tax Payments
and Operating Expense Escalations above, until Landlord furnishes the foregoing Statements. Tenant’s liability for Operating
Expense Escalations and Tax Payments due pursuant to this Article and/or Landlord’s liability for refunding any overpayment
by Tenant shall survive the expiration of the Term.

 

    	 	-23-	 

     

    

 

Pending any audit by the Tenant or Comptroller
of Operating Expense Escalations and Tax Payments for any calendar and/or fiscal year, including the Base Year Operating Expenses
and Base Taxes, Tenant shall pay Operating Expense Escalations and Tax Payments pursuant to the provisions hereof for such year
as billed by Landlord, provided, however, that once Tenant notifies Landlord as to a dispute Tenant shall have the right to withhold
only the disputed amount on account of Operating Expense Escalations or Tax Payments until the dispute in question is resolved;
and upon completion of such audit Tenant shall be allowed to deduct immediately overcharges detected upon audit from any installment
of rent then becoming due. or, if at the end of the Term, Tenant shall be entitled to a payment from Landlord for such amounts
within seven (7) days of Termination or expiration.

 

(B)         Any
right of Tenant to audit Base Year Operating Expenses shall be conditioned upon such audit being commenced by Tenant (without reference
to the Comptroller’s right to audit) within one (1) year after Landlord furnishes the Expense Schedule and such audit being
conducted in a reasonably expeditious manner. Any amount overpaid by Tenant shall bear interest at the Default Rate ( as hereinafter
defined) from the date of payment to the date of refund. Any amount wrongfully withheld by Tenant shall bear interest at the Default
Rate from the date such amount was first withheld until actually paid.

 

    	 	-24-	 

     

    

 

(C)         Tenant
and its authorized representative, at Tenant’s sole expense, shall have the right to examine and copy and, with respect to
computation of Base Year Operating Expenses Operating Expense Escalations, Base Taxes and Tax Payments, audit any and all relevant
books and records of Landlord, including, but not limited, original invoices, originals of executed contracts, original canceled
checks, general ledgers and books of original entry, for the purpose of verifying the accuracy of any Statement furnished by Landlord
to Tenant with respect to the Base Year Operating Expenses, computation of Operating Expense Escalations, Base Taxes and Tax Payments
hereunder, upon reasonable prior notice, during regular business hours. All such Statements are subject to verification by the
occupying agency or its representative and post-audit by the Office of the Comptroller, it being agreed that such verification
and audit rights shall not extend to an audit of Landlord’s operating expenses, except for Base Year Operating Expenses (since
Tenant’s payment obligations are based on the Price Index escalation above the Base Year Operating Expenses and not on Landlord’s
actual expenses). Landlord shall be required to retain the books and records required herein at its main office(s) or such other
locations within New York City as it may designate, for six (6) years after the period to which they relate.

 

(D)         Landlord
shall notify Tenant of (i) any protest filed by any other tenant of the Building regarding amounts billed for Base Year Operating
Expenses and/or Tax Payments pursuant to this Article; and (ii) with respect to any Base Year Operating Expenses and Base Taxes
and Tax Payments pursuant to this Article, any audits, resolution of audits, claims for a refund of overpayments, settlements of
overpayments, refunds of overpayments, and litigation and arbitration proceedings for recovery of overpayments, where such audits
and other actions result in a determination that overcharges have occurred. For litigation and arbitration proceedings for recovery
of overpayments, “determination” shall mean the trial-lower court or arbitrator’s determination, respectively,
prior to appeals. Tenant shall complete any examination or audit initiated for the verification of any Statement within a reasonable
time. If, at the end of such period, Tenant has not claimed in good faith to have found a miscalculation relating to such Statement,
Tenant shall be deemed to have accepted such Statement and shall, within ten (10) days thereafter, remit all disputed withheld
amounts (with interest as hereinabove provided). If Tenant does, within such period, claim in good faith to have found a miscalculation,
Tenant shall notify Landlord. Landlord and Tenant shall use good faith efforts to resolve any disagreement within ten (10) business
days after Tenant’s notice and, if they fail to do so, either party may submit such disagreement to arbitration in accordance
with Article 6 (X) below.

 

    	 	-25-	 

     

    

 

IV.          REAL
ESTATE TAX ESCALATION FOR PARKING LOT

 

Upon delivery to Tenant for its exclusive
use of the Parking Lot, Tenant shall pay Tax Payments with respect to the Parking Lot (Block 165, Lot 68)pursuant to all the terms
and conditions of Paragraph II above, except that the Base Taxes shall be those applicable to the Parking Lot only and Tenant’s
Proportionate Share of Tax Payments for the Parking Lot shall be 100%.

 

ARTICLE
5

 

LANDLORD’S
INTEREST IN PREMISES

 

Landlord warrants and represents that it
is the owner in fee of the Building, the Demised Premises, and the Land and is empowered and authorized to lease the Demised Premises
as provided herein.

 

    	 	-26-	 

     

    

 

ARTICLE
5A

 

TENANT’S
OPTION WITH RESPECT

 

TO
ORIGINAL STORAGE SPACE

 

Tenant shall have a one time option to extend
the OSS Term for a period from January 1, 2019 through the Expiration Date (“OSS Renewal Term”), by written notice
sent to Landlord no later than December 31, 2017, time being of the essence. If Tenant exercises such option, this Lease shall
continue in full force and effect with respect to the Original Storage Space during the OSS Renewal Term (including, without limitation,
escalation base periods and percentages) and the Base Rent for the Original Storage Space shall be $147,157.85 per annum during
the OSS Renewal Term.

 

ARTICLE
6

 

BASE
BUILDING AND TENANT WORK;

 

SUBSTANTIAL
COMPLETION

 

(A)         Landlord
agrees to make alterations and improvement in and to the Building and the Demised Premises as provided in this Article based on
preliminary plans and scopes of work (collectively, “Preliminary Plans”) prepared by the Division of Real Estate Services
(“DRES”), approved by the occupying agencies and attached hereto as Exhibit C and made a part hereof. Such work consists
of (1) alterations and improvements in and to the Building and its systems and facilities (outside of the Demised Premises) described
in Landlord’s base building scope of work, constituting a part of Exhibit C (“Base Building Work”), which shall
be performed by Landlord and paid for as provided in Sections (H), (I) and (K) of this Article 6, and (2) alterations and improvements
in and to the Office Space described in the Preliminary Plans (“Tenant Work”), which shall be performed by Landlord
and paid for by Tenant as set forth in Sections (H), (I) and (K) of this Article 6. The Base Building Work and the Tenant Work,
which are hereinafter collectively referred to as the “Work,” are both fully described in Exhibit C annexed hereto.
Notwithstanding the foregoing, the Lobby Space will remain “as is,” subject, however, to the requirements of Article
7 below; the Original Storage Space will remain “as is,” except for a building standard painting, at Tenant’s
request and Landlord’s sole cost and expense, with the necessary and reasonable cooperation of Tenant; and the New Storage
Space is being leased “as is.”

 

    	 	-27-	 

     

    

 

(B)(1) Within one (1) business day after
the Execution Date, Landlord shall solicit and deliver to DRES bids from three architects for the cost of preparing the Final Plans
(as hereinafter defined) for the Work in its entirety, which bids shall be broken down into Base Building Work and Tenant Work
cost components. Each such bid shall set forth the cost and itemization of the architect’s work. Within five (5) business
days after receipt of such bids, DRES shall submit to Landlord either written (1) approval of one of the three bids, or (2) disapproval
of all bids, accompanied by reasonable justification for such disapproval. In the event of the reasonable disapproval of all three
bids, DRES shall meet with Landlord within five (5) business days after such disapproval, at which time both Landlord and DRES
shall reasonably and in good faith attempt to resolve DRES’ reasonable objections constituting the basis for such disapproval.
Landlord and Tenant shall continue to cooperate reasonably and in good faith with each other until a mutually acceptable architect
is selected.

 

    	 	-28-	 

     

    

 

(2)         Within
fifty (50) business days from (i) the date of selection of the Architect (defined below) or (ii) the Lease Execution Date, whichever
is later, Landlord shall cause the mutually selected architect ( such architect being referred to herein as the “Architect”),
at the approved cost set forth in said Exhibit C-1, to prepare and deliver to DRES architectural and engineering plans and specifications
for the performance of the Work (“Complete Plans”). The Complete Plans must (1) be engineering and architecturally
complete; (2) be coordinated with the existing conditions and facilities of the Building; (3) be in conformance with all applicable
New York City codes and all other applicable requirements, including, but not limited to, the terms and conditions set forth in
the professional services requirement document prepared by DRES and entitled “Guide for Design Consultant” and dated
October, 1996 (a copy of which is attached hereto as Exhibit D); (4) be coordinated with and based on the Preliminary Plans; (5)
create a complete set of construction documents; and (6) include a phasing plan, which shall describe the sequence of the Work
to be performed (“Phasing Plan”). Concurrently with the delivery of said Complete Plans to DRES, the Complete Plans
shall be filed with the Building Department, the Fire Department and all other governmental authorities having jurisdiction.

 

(C)         Within
fifteen (15) business days after delivery of the Complete Plans to Tenant, DRES will review and either approve or disapprove such
initial Complete Plans (including, without limitation, the Phasing Plan), which approval shall not be unreasonably withheld or
delayed. If DRES fails to respond within such fifteen (15) business day period, such Complete Plans and the accompanying Phasing
Plan shall be deemed approved. If DRES does not approve such initial Complete Plans in their entirety, it shall, within such fifteen
(15) business day period, indicate in writing which aspects or portions of such Complete Plans it does approve, if any, and the
corrections reasonably required for its furnishing of such approval with respect to the remainder of such Complete Plans. Landlord
shall, within fifteen (15) business days after receipt of such proposed corrections, resubmit revised Complete Plans and DRES shall,
within ten (10) business days after the receipt of such Complete Plans, either approve or disapprove such revised Complete Plans
in the same manner set forth above. If DRES does not approve such revised Complete Plans in their entirety, the foregoing process
shall continue, Landlord preparing revised Complete Plans and Tenant responding thereto, all within the time constraints and following
the procedures set forth in the immediately preceding two sentences, until Tenant shall have approved the revised Complete Plans
in their entirety, which approved revised Complete Plans are herein referred to as the “Final Plans.” Within ten (10)
business days after such approval is received, the Final Plans shall be filed with the Building Department, the Fire Department
and all other governmental authorities having jurisdiction.

 

(D)         Within
ten (10) business days after DRES’ approval of the Final Plans, and prior to the commencement of the Work, Landlord shall
deliver to DRES Building Department administrative approvals with respect to the Final Plans. If Landlord has not received such
Building Department administrative approvals within such ten (10) business day period, Landlord shall provide DRES with (1) reasonable
written verification that it has not received such administrative approvals; (2) a list of the most recent objections by the Building
Department and Landlord’s reply thereto; and (3) reasonable substantiation that Landlord is proceeding diligently to obtain
such administrative approvals. Within ten (10) business days after Landlord’s receipt of Building Department administrative
approval of the Final Plans, Landlord will submit to DRES a copy of the Building Department permit for the performance of the Work
(“Building Permit”). If Landlord has not received the Building Permit within such ten (10) business day period, Landlord
shall (4) provide DRES with reasonable written verification that it has not received the Building Permit, and (5) furnish DRES
with reasonable substantiation that Landlord (a) has diligently pursued and continues to diligently pursue obtaining the Building
Permit, and (b) has responded in a timely manner to objections raised by the Building Department.

 

    	 	-29-	 

     

    

 

(E)         Landlord
hereby represents and warrants that it has the financial capability and/or adequate financing to complete the Work within the time
frames set forth herein. Landlord’s misrepresentation with respect to such capability shall constitute a basis for rescission
of this Lease.

 

(F)         During
the course of the preparation and revision of the Complete Plans and approval of the Final Plans, Landlord and DRES shall agree,
on a reasonable basis, with respect to not fewer than three general contractors and/or construction managers (one of which may
be Landlord or an affiliated entity) which shall be requested to competitively bid the performance of the Work (“Approved
Bid Contractors”). Within twenty (20) business days after DRES’ approval of the Complete Plans, Landlord shall submit
DRES-supplied cost estimate forms completed by each of the Approved Bid Contractors (“Cost Proposals”) for the performance
of the Work. The Cost Proposals shall indicate in reasonable detail the proposed cost of the Base Building Work (“Base Building
Work Cost”) and the proposed cost of the Tenant Work (“Tenant Work Cost”). The Base Building Work Cost and the
Tenant Work Cost (collectively, “Work Cost”) shall constitute all costs and expenses (excluding construction loan interest
and related financing cost) charged to Landlord for:

 

(1)         The
preparation and filing of the Final Plans (including, without limitation, all Architect fees and disbursements (as approved in
writing by DRES) for the preparation of the Final Plans and “as built” drawings pertaining to the performance of all
aspects of the Work and expediters’ fees and filing fees for the submission of the Final Plans to all governmental authorities
having jurisdiction for approval thereof);

 

    	 	-30-	 

     

    

 

(2)         Fees
charged by all governmental authorities having jurisdiction for approval of the Final Plans, issuance of the Building Permit and
all signoffs and approvals required to satisfy the requirements of this Article 6;

 

(3)         The
performance of all items of the Work in accordance with the Final Plans; and

 

(4)         One
general conditions’ fee from, and one charge for overhead and profit for, the Designated Contractor (as hereinafter defined),
but only to the extent indicated in the approved Cost Proposal.

 

Landlord shall not be
entitled to an administrative or management fee for the performance of the Work. There shall be no double payment by Tenant of
any item included in the cost of the performance of the Work, including, without limitation, any component of overhead, profit
or fees charged by the Designated Contractor.

 

(G)         Once
Landlord has received the Cost Proposals (which Cost Proposals shall clearly delineate the Base Building Work Cost and Tenant Work
Cost, as herein defined, as well as a breakdown of the Tenant Work Cost between Floor 8 and the remainder of the Office Space),
it shall within three (3) business days thereafter furnish DRES with the paperwork of the Approved Bid Contractor which furnished
the lowest bid for the total of the Base Building Cost and Tenant Work Cost, as herein defined. DRES may, within ten (10) business
days after its receipt of such Cost Proposals, approve or disapprove same, so long as any disapproval is predicated on a reasonable
basis and is consistent with the scope of work (constituting a part of Exhibit C annexed hereto) for the Base Building Work and
the Tenant Work. If DRES fails to disapprove the Base Building Work Cost and/or the Tenant Work Cost within such ten (10) business
day period, it shall be deemed to have approved both the Base Building Work Cost and the Tenant Work Cost. If DRES reasonably disapproves,
it shall meet with Landlord within five (5) business days thereafter and Landlord and Tenant shall negotiate reasonably and in
good faith and thereby agree upon the Base Building Work Cost and the Tenant Work Cost. As part of such negotiation, DRES shall
meet with the Approved Bid Contractor which furnished the lowest bid for the total of the Base Building Work Cost and the Tenant
Work Cost (“Designated Contractor”) and resolve (on a reasonable basis) any discrepancies in unit prices and quantities.

 

    	 	-31-	 

     

    

 

 

(H)         Landlord
shall pay the first $1,456,760.00 of the Work Cost (the “Landlord’s Contribution”) and Tenant, shall pay any
additional Work Cost (“Excess Work Cost”) which Excess Work Cost shall be paid as provided in Section (I) of this Article
6.

 

(I)         Tenant’s
share of the Work Cost shall not exceed $10,310,429.00 (“Not
to Exceed Amount”). Although Tenant shall be ultimately responsible for the payment, by way of
reimbursement, to Landlord, in accordance with the provisions of this Article 6, of the entire Work Cost in excess of the Landlord’s
Contribution, i.e., the Excess Work Cost, limited as hereinabove provided, the maximum amount which Landlord shall be required
to have advanced at any one time on account of Tenant’s share of the Work Cost shall not exceed $9,750,000.00 (“Landlord’s
Work Cost Advance”). Notwithstanding the foregoing, the Tenant Work Cost may be further modified at a later date by DRES
requesting changes beyond the Final Plans, provided Tenant’s share thereof does not exceed the Not To Exceed Amount and the
limitation of the Landlord’s Work Cost Advance is not exceeded, and provided that, with respect to such changes, Tenant and
Landlord shall have agreed as to the nature, amount and cost thereof. If Tenant’s share of the Work Cost exceeds the Not
To Exceed Amount, Landlord shall promptly notify DRES and DRES shall meet with Landlord, the Architect and the Designated Contractor
to reasonably and in good faith resolve the overage, including, but not limited, to reducing the Base Building and/or Tenant Scope
of Work. However, Tenant may not reduce the scope of the Base Building Work without Landlord’s prior written consent. With
respect to items of such scope which involve elevator, HVAC and fire safety, Landlord’s consent may be unreasonably withheld.
With respect to all other items of such scope of work, Landlord’s consent shall not be unreasonably withheld.

 

    	 	-32-	 

     

    

 

Landlord’s Initial
Work Cost Advance shall be repaid by Tenant to Landlord in the following manner:

 

(1)         The
portion of Landlord’s Work Cost Advance applicable to the Work for Portion   1 shall be repaid in a lump sum within
forty-five (45)days after the Commencement Dale for Portion 1; and

 

(2)         One-half
of the portion of Landlord’s Work Cost Advance, viz. that portion which is applicable to the Work for Portion 2, shall be
repaid over five (5) years from the Commencement Date for Portion 2, as hereinafter provided; and

 

(3)         One-half
of portion of the Landlord’s Work Cost Advance, viz. that portion which is applicable to the Work for Portion 3, shall be
paid over five (5) years from the Commencement Date for Portion 3, as hereinafter provided.

 

Following
the Commencement Date for each of Portion 2 or Portion 3, Tenant shall reimburse Landlord for the portion of Landlord’s Work
Cost Advance applicable to the Work for Portion 2 or Portion 3, as the case may be, on a self-liquidating basis, in sixty (60)
equal monthly installments of the portion of Landlord’s Work Cost Advance applicable to Portion 2 or Portion 3, together
with interest on each such portion, at the rate of two percent (2%) in excess of the so-called “ prime” or “base”
interest rate as established by the Citibank, N.A., or its successor, or if it ceases to exist the corresponding rate published
in the New York Times in effect on the Commencement Date for the applicable portion (“Loan Interest Rate”), provided,
however, that Tenant may at any time make additional payments in reduction of the outstanding balance of the portion of Landlord’s
Work Cost Advance applicable to either Portion 2 or Portion 3 without penalty, in which case the amount of any remaining monthly
payments shall be appropriately adjusted.

 

    	 	-33-	 

     

    

 

Notwithstanding
the foregoing, Tenant in its sole discretion, may elect to reimburse Landlord for the portion of Landlord’s Work Cost Advance
applicable to both Portions 2 and 3 by a lump sum payment made within forty-five (45) days following the applicable Commencement
Date. Otherwise interest, as set forth above, shall be computed from the date of Substantial Completion until repayment in full
of the portion of Landlord’s Work Cost Advance applicable to Portions 2 and 3. In the event this Lease is terminated pursuant
to Article 3 hereof, Tenant shall reimburse the Landlord for the remaining balance of the portion of Landlord’s Work Cost
Advance applicable to Portions 2 and 3 of the Work in one lump sum on or before the effective date of termination.

 

If
Tenant fails to make any lump sum payment within the applicable forty-five (45) day grace period, such payment shall bear interest
at the Loan Interest Rate from the end of such forty-five (45) day period until paid in full.

 

(4)         The
entire then unpaid Landlord’s Work Cost Advance shall become due and payable, at the option of Landlord, upon (i)
Tenant’s failure to make any payment due under this Section (1) and the continuance of such failure for ten (10)
business days after Landlord’s written notice to DRES of such failure, unless such failure to make such payment is due
to to the once yearly registration of this Lease with the Comptroller’s Office (subject to a thirty (30) day
limitation), or (ii) the occurrence of any material monetary default by Tenant under this Lease that continues beyond any
applicable notice and/or grace period and which results in the termination of this Lease, or (iii) the termination of this
Lease for any reason whatsoever (other than pursuant to Section (Q) or (R) hereinbelow).

 

    	 	-34-	 

     

    

 

(J)         The
Base Building Work Cost and the Tenant Work Cost shall be subject to audit by the Department of Citywide Administrative Services
and/or its authorized representative but only if and so long as Tenant continues to make payment (which payment may be made on
a “without prejudice” basis) in accordance with Section (I) hereinabove, and, at the discretion of the Comptroller
of the City of New York, also may be post-audited by the Comptroller.

 

(K)         Landlord’s
Contribution and Tenant’s share of the Work Cost shall be paid for initially by Landlord (but only as and to the extent set
forth in Section (I) hereinabove). Landlord shall have a continuing obligation to make regular periodic payments to the Designated
Contractor, at approximately thirty (30) day intervals, in amounts reasonably commensurate with the amount of progress toward Substantial
Completion (as hereafter defined), during the period from the commencement of the performance of the Work through the Substantial
Completion of the Work so as to assure diligent and timely completion of the Work.

 

(L)         The
parties agree that the Demised Premises (other than the Original Storage Space) shall be renovated and delivered in the following
stages: (1) Portion 1 - Floor 8, and the Parking Lot; (2) Portion 2 - two additional floors of the Office Space and the New Storage
Space; and (3) Portion 3-the final two floors of the Office Space.

 

Subject to Sections (M)
and (N) hereinbelow, portions of the Work shall be deemed “Substantially Complete,” and “Substantial Completion”
of each of the several Portions of the Demised Premises (not including the Original Storage Space and the Parking Lot, which is
dealt with in Section (P) hereinbelow) shall be deemed to have occurred, upon:

 

    	 	-35-	 

     

    

 

(1)         Certification
by DRES (which certification shall not be unreasonably withheld or delayed) of Landlord’s completion of the Tenant Work for
the applicable Portion (together with such portion of the Base Building Work as is necessary for the occupancy by Tenant of such
Portion), excepting minor details of construction or decoration which do not materially adversely affect Tenant’s occupancy
of such Portion; and

 

(2)         Delivery
to DRES of (a) all applicable Building Department and Fire Department inspection signoffs (including, without limitation, Building
Department Post Permit TR-1, equipment use permits, electrical and plumbing signoffs and compliance with the terms and conditions
of Article 26 of this Lease pertaining to Asbestos) with respect to such Portion (together with such portion of the Base Building
Work as is necessary for the occupancy by Tenant of such Portion) (self-certification by Landlord’s Architect and/or Landlord’s
engineer, with respect to items for which Building and Fire Department shall accept self- certification, shall be sufficient if
permitted by law or code), and (b) a certified air balancing report approved by Landlord’s engineer as being in conformance
with the portion of the Final Plans that are applicable to such Portion. DRES agrees to use reasonable efforts to assist Landlord
in scheduling prompt Building Department and Fire Department inspections, provided, however, Landlord has (i) submitted to the
Building and/or Fire Department all applicable papers and (ii) completed all necessary Work for sign-offs and (iii) requested said
inspections in a timely manner. Failure by DRES to use such reasonable efforts to assist Landlord in scheduling said inspections,
where Landlord has submitted all applicable papers and completed all necessary work for sign-offs, shall be deemed a Tenant Delay.

 

    	 	-36-	 

     

    

 

 

DRES shall
certify or deny certification of Substantial Completion pursuant to subsection (1) above within five (5) business days after DRES
receives written notice from Landlord that Landlord believes that the applicable Portion is Substantially Complete (which notice
must be accompanied by all applicable documents required pursuant to subdivisions (a) and (b) of this subsection (2)). If DRES
fails to respond within such five (5) business day period, and provided all signoffs have been submitted, Substantial Completion
of the applicable Portion shall be deemed to have occurred on the day following such five (5) business day period. If signoffs
are temporary, Landlord will keep them in full force and effect. Prior to each applicable Substantial Completion Date, Landlord
shall remove all violations of record (including, without limitation, Building Code and Fire Code violations) then pending against
the applicable Portion and/or affecting Tenant’s access to and use of said applicable Portion, except those violations caused
by Tenant’s violation of any of the terms and conditions of this Lease or caused by other tenants in the Building, which
violations Landlord shall diligently proceed to advise such other tenant to remove.

 

(M)         Notwithstanding
anything to the contrary contained in this Article : (a) if Substantial Completion of any Portion is delayed by reason of any
one or more Tenant Delay(s), as hereinafter defined, the Rent Commencement Date for such Portion shall be advanced, following
achievement of Substantial Completion of such Portion in accordance with the terms of this Article 6, by the number of days
for such Tenant Delay(s) remaining after having deducted from such number of days of Tenant Delay any one or more days of
Landlord Delays, as hereinafter defined; (b) if Substantial Completion of any Portion is delayed by reason of any one or more
days of Landlord Delays, as hereinafter defined, the Commencement Date for such Portion shall be delayed, following
Substantial Completion of such Portion in accordance with the terms of this Article 6, by the number of days of such Landlord
Delay (s) remaining after having deducted from such number of days of Landlord Delay any one or more days of Tenant Delay as
hereinafter defined; and (c) any time period for either party to perform any obligation under
this Article 6 automatically shall be deemed extended by the period of delay in such party’s ability to perform the
applicable obligation caused by an Unavoidable Delay, as defined in Article 22 hereof.

 

    	 	-37-	 

     

    

 

 

(N)         (1)
For purposes of this Lease, a “Tenant Delay” shall mean any delay of one or more days (not due to an
Unavoidable Delay or Landlord Delay, as hereinafter defined), exceeding an aggregate of thirty (30) days, as a result of any
of the following, provided Landlord has notified DRES of same in writing by fax or mail: (i) any request by Tenant that
Landlord delay in proceeding with any segment or part of the Work; (ii) any changes or requests for changes, by or on behalf
of, Tenant, to the Final Plans pursuant to change order procedures set forth in Subparagraph (3) below; (iii) any failure by
Tenant to timely respond to submissions and timely complete its review and reasonably approve Complete Plans pursuant to the
time frames and other provisions set forth herein; (iv) any delay in the selection of materials to be made by Tenant; (v) any
failure by Tenant to make any payment when due as described in this Article; (vi) any failure by Tenant to respond reasonably, in good faith or within the time frames set forth herein or to respond with reasonable specificity where required herein;
or (vii) anything else expressly stated in this Lease to be a Tenant Delay.

 

(2)         If
Landlord shall be delayed in Substantially Completing any portion of the Tenant Work by reason of one or more Unavoidable Delays
or Tenant Delay or Tenant Delays in the aggregate, then Landlord’s time to complete the Work, as set forth in Sections (Q)
or (R) of this Lease, shall be extended one (1) day for each day of Unavoidable Delays and for each day of a Tenant Delay or Tenant
Delays in the aggregate. In that connection, the number of days of Tenant Delays shall be reduced by the number of days of delay
that Landlord has failed, due to any act or omission of Landlord, or its employees, agents, representatives or contractors, including,
but not limited to, the Architect, Landlord’s engineer, or the Designated Contractor (not due to an Unavoidable Delay or
Tenant Delay), to meet deadlines or respond reasonably, in good faith or timely perform obligations imposed on Landlord under
any provision of this Article, exceeding an aggregate of thirty (30) days of such delay, (“Landlord
Delays”), except that no day shall be counted as a day of Landlord Delay until Tenant has notified Landlord thereof
in writing by fax or mail. In calculating the number of days of Tenant Delay and Landlord Delay, each calendar day shall only
be counted as one day, regardless of whether more than one category of Tenant Delay or Landlord Delay is occurring on that calendar
day.

 

    	 	-38-	 

     

    

 

(3)         DRES
may request changes in the Final Plans (subject to the limitations hereinabove set forth with respect to Tenant’s right to
reduce the scope of the Base Building Work) consisting of additions, deletions or other changes in the Complete Plans. If DRES
desires to make a change, the same shall be communicated to Landlord by a written change order request. Provided that Landlord
otherwise approves such changes, Landlord shall promptly prepare and furnish to DRES a statement, setting forth Landlord’s
good faith estimate of the increase in the Tenant Work Cost, if any, as well as Landlord’s good faith estimate of any changes
in the progress of the Tenant Work (including the number of days of Tenant Delay), which would result by reason of such change.
If, within five (5) business days after DRES’s receipt of said statement, DRES issues a letter approving the aforesaid statement,
such statement shall constitute a mutually binding change order and such change order shall be included in the Final Plans. The
failure of DRES to so notify Landlord within said five (5) business day period shall be deemed a withdrawal by DRES of the request
for the change in question. Any increase in the Work Cost resulting from a change order requested by Tenant shall be deemed to
constitute a portion of Tenant’s Work Cost provided it does not exceed the Not To Exceed Amount. In addition, any delays
resulting from a change order or a request for a change order shall ( following the expiration of the thirty (30) day period of
delays referred to above in Section (N) (1) hereinabove be deemed to constitute a Tenant Delay.

 

(O)         The
Portion Commencement Date for each Portion (other than the Parking Lot) shall be the earlier of the date such Portion is or is
deemed Substantially Completed or the date on which Tenant commences business operations in any part of such Portion.

 

(P)         (1
)There is no Work with respect to the Parking Lot, except for the completion of the pending subsurface repairs (“Current
Repair Work”), which Landlord will complete with reasonable diligence. Landlord agrees to deliver to Tenant a vacant Parking
Lot with the Current Repair Work completed upon the Substantial Completion of the Work for Floor 8 (“Floor 8 Completion Date”).
Tenant acknowledges that it is aware that the Parking Lot is currently leased to a third party. If any occupant of the Parking
Lot fails to vacate the Parking Lot on or before the Floor 8 Completion Dale, Landlord shall, at Landlord’s sole cost and
expense, diligently, using best efforts, immediately pursue all available legal remedies in order to obtain vacant possession of
the Parking Lot, including, without limitation, the commencement and diligent prosecution of a holdover proceeding, and shall keep
Tenant apprised of the status of such efforts. Landlord and Tenant hereby agree and acknowledge that Tenant cannot effectively
use the Demised Premises without full use of the Parking Lot. If Landlord cannot deliver the Parking Lot to Tenant vacant and ready
for use by Tenant, with Current Repair Work completed, by the Floor 8 Completion Date, Landlord shall procure, at its sole cost
and expense, and rent free to Tenant, alternative parking spaces for the same proportionate number of vehicles as the capacity
of the applicable portion of the Parking Lot (“Substitute Parking Spaces”), all within a radius of not more than two
( 2) blocks from the Building, in stages, in the following proportions depending on which Portion of the Work has been Substantially
Completed, viz. 50% of the Substitute Parking Spaces shall be made available upon Substantial Completion of Portion 1, 25% of the
Substitute Parking Spaces shall be made available upon the Substantial Completion of Portion 2, and 25% of the Substitute Parking
Spaces shall be made available upon Substantial Completion of Portion 3 of the Work. In the event that, after four (4) months have
elapsed since the Last Portion Commencement Date, Landlord has still not delivered the Parking Lot vacant and ready for Tenant’s
use, with Current Repair s completed, Landlord shall continue to provide the Substitute Parking Lot (s) for Tenant’s use,
at Landlord’s sole cost and expense and rent free to Tenant, at no expense to Tenant, and, in addition, the Base Rent for
the Office Space as provided for in Article 2 (B) above shall be reduced by twenty percent (20%) at the end of such four (4) month
period until such time as Landlord has delivered such Parking Lot vacant and ready for Tenant’s exclusive use.

 

    	 	-39-	 

     

    

 

(2)         After
the fourth (4th) anniversary of the Last Portion Commencement Date, if the then Landlord under this Lease decides to
develop the Parking Lot, it may terminate this Lease with respect to the Parking Lot provided it provides Tenant, within a three
(3) block radius of the Building, with the same number of alternative parking spaces that Tenant is then utilizing in the Parking
Lot. The parties shall act reasonably and in good faith to work out the details of this arrangement. Any dispute in connection
with this Subsection shall be submitted to arbitration under Section (X) hereinbelow.

 

    	 	-40-	 

     

    

 

(Q)         If,
prior to Substantial Completion thereof, Landlord fails with respect to any Portion either to (i) meet any applicable time period
set forth in Sections (B), (C), (D) or (G) of this Article 6, or (ii) commence performance of the Work within ten (10) business
days after its receipt of Tenant’s approval of the Final Plans, the Base Building Work Cost and the Tenant Work Cost and
the agreed upon final Phasing Plan, and the issuance of all necessary governmental permits and approvals for the performance of
the entire Work, (subject, however, in each of clauses (i) and (ii), to Sections (M) and (N) hereinabove), Tenant may give Landlord
written notice advising Landlord of its failure to comply with any of the foregoing requirements (“Delay Notice”),
which Delay Notice shall specify, in reasonable detail, the unperformed requirement. If Landlord fails to commence compliance with
the requirement specified in the applicable Delay Notice (“Delay Notice Requirement”) within fifteen (15) business
days after its receipt of such Delay Notice and thereafter diligently and without interruption complete the performance of the
Delay Notice Requirement (subject, however, to Sections (M) and (N) hereinabove), Tenant may send Landlord a second notice of Landlord’s
failure to perform such Delay Notice Requirement (“Second Delay Notice”). If Landlord fails to commence the performance
of such Delay Notice Requirement within ten (10) business days after its receipt of the Second Delay Notice and thereafter diligently
and without interruption complete the performance of such Delay Notice Requirement (subject, however, to Sections (M) and (N) hereinabove),
Tenant, in addition to its rights and remedies hereinabove set forth, may terminate this Lease on thirty (30) days’ written
notice to Landlord.

 

    	 	-41-	 

     

    

 

(R)         Anything
herein to the contrary notwithstanding, subject to the last paragraph of this Section (R), if Landlord fails to Substantially Complete
the entire Work within six (6) months after Tenant’s approval of the Complete Plans, the Base Building Work Cost, the Tenant
Work Cost and the agreed upon final Phasing Plan and the issuance of all necessary permits and approvals for the performance of
the entire Work, assuming Landlord and/or its agents, the Architect, et al are acting diligently and without interruption to obtain
same and are using reasonable efforts in that regard (subject, however, to Sections (M) and (N) hereinabove), Tenant may give Landlord
written notice advising Landlord of its failure to timely Substantially Complete the entire Work (“Completion Delay Notice”).
If Landlord, following receipt of said Completion Delay Notice, fails to diligently continue, without interruption, to Substantially
Complete the entire Work (subject, however, to Sections (M) and (N) hereinabove), Tenant may send Landlord a second written notice
(“Second Completion Delay Notice”). If Landlord does not thereafter resume diligently and without interruption and
continuity performance of the Work Tenant may terminate this Lease by giving notice to Landlord to that effect, such termination
to be effective ten (10) days after such notice is given. The foregoing remedy may not be exercised by Tenant if Landlord has completed
the entire Work (except for Punch List Items) and has timely filed all necessary paper work, but has not received the necessary
governmental signoffs within the time frames set forth in this Section (R), and has reasonably demonstrated to DRES in writing
that it is diligently pursuing receipt of such necessary signoffs, including, but not limited to, the use of Landlord’s reasonable
and diligent efforts. The provisions of this Section shall not apply to Landlord’s failure to complete Punch List Items,
as hereinafter defined.

 

Landlord
and Tenant hereby agree that certain components of the Base Building Work will lake more than the aforesaid six (6) month period
to Substantially Complete (the “Long Lead Items”). Such Long Lead Items shall be Substantially Completed within time
frames mutually agreed to by Landlord and Tenant, acting reasonably and in good faith, no later than ten (10) business days from
the approval of the Final Plans by the Building Department.

 

(S)         After
Substantial Completion of the entire Work and as part of the Punch List below, Landlord shall furnish Tenant with “as built”
drawings covering the entire Demised Premises and other portions of the Building materially affecting access to the Demised Premises.

 

    	 	-42-	 

     

    

 

(T)         After
Substantial Completion of the entire Work and /or each Portion thereof, with respect to minor details of construction or decoration
which do not materially adversely affect Tenant’s use of the Demised Premises, Tenant may submit to Landlord a written list
of such minor details, including such comments to “as built” drawings following completion of the entire Work, which
it reasonably deems to be incomplete (collectively, “Punch List Items”). Landlord shall, within thirty (30) days after
receipt of such list of Punch List Items (subject, however, to Sections (M) and (N) hereinabove), commence performance of and thereafter
diligently proceed in a continuous manner to complete the Punch List Items. If Landlord fails to do so. Tenant may give notice
thereof to Landlord (“Punchlist Delay Notice”) specifying in reasonable detail the Punch List Items which Tenant believes
Landlord is not performing (subject to Sections (M) and (N) hereinabove). If Landlord fails to commence performance of such specified
Punch List Items within ten (10) business days after receipt of such notice and thereafter diligently proceed in a continuous manner
to complete such performance, Tenant may, (1) as
agent for Landlord, perform such specified Punch List Items and deduct the reasonable cost thereof from the Base Rent next accruing
under this Lease, or (2) withhold 150% of the reasonably estimated cost of the performance of such specified Punch List Items until
Landlord completes the performance thereof to the reasonable satisfaction of Tenant (and upon completion of such Punch List Items.
Tenant shall immediately pay such withheld amount to Landlord).

 

(U)         Landlord
acknowledges that the Demised Premises may be occupied and used by Tenant, its employees and invitees during the performance of
the Punch List Items. Accordingly, Landlord shall, and shall cause its contractors to, use good faith efforts to minimize noise,
dust and other conditions which may adversely affect Tenant, its invitees, employees and workers; and take every reasonable precaution
(i) against injuries to persons or damage to property and (ii) to provide for the safety of persons at the Demised Premises. Landlord
shall be responsible for the initiation, maintenance and supervision of reasonable safety precautions and programs in connection
with the performance of the Punch List Items. Prior to the commencement of performance of the Punch List Items, Landlord shall
designate a qualified person to carry out such programs and notify Tenant of the person so designated.

 

    	 	-43-	 

     

    

 

(V)         Landlord
agrees to name, or cause its contractors to name, the City of New York as an additional named insured on their respective policies
of public liability insurance, and to furnish the Tenant with certificates of insurance to that effect, provided there is no additional
charge therefor or. if there is such a charge, Tenant pays such charge.

 

(W)         (1)         Landlord shall permit Tenant, upon reasonable prior notice, during business hours, to (a) inspect the progress of construction
of the Work, (b) have its cabling and telephone equipment installed in the Demised Premises, and (c) affix any fixtures; provided
that any of the above does not interfere beyond a de minimis extent with Landlord’s contractors’
performance of the Work. Any such interference with Landlord’s performance of the Work shall be deemed to be a Tenant Delay.

 

(2)         With
respect to Tenant’s repair obligations, upon completion of the Work, Landlord shall assign to Tenant the beneficial interest
in all warranties and guarantees received by Landlord from contractors and materialmen engaged in the performance of the Work,
as well as the right to enforce any contracts made with such contractors and materialmen. Landlord hereby appoints Tenant as its
attorney-in-fact to institute suit in Landlord’s name and for Tenant’s benefit with respect to such assigned rights
and agrees to cooperate fully with Tenant if Tenant seeks to enforce them. Notwithstanding anything to the contrary in Article
13 hereof, Landlord shall be solely responsible for the performance and cost of all repairs resulting from defects of materials
and workmanship in construction and/or alterations and improvements of the Demised Premises or of the Building (except for work
performed by or for Tenant, other than the Tenant Work).

 

    	 	-44-	 

     

    

 

(3)         Notwithstanding
anything to the contrary in Article 13 hereof, Landlord shall be solely responsible, as between Landlord and Tenant, for the performance
and cost of all repairs resulting from defects of materials and workmanship in the performance of the Base Building Work and Tenant
Work, for (a) a period of one (1) year from the date of Substantial Completion of the Last Portion of the Work or (b) the duration
of any warranties or guarantees of its contractors or subcontractors with respect to the Work, whichever is longer; provided Landlord
has obtained commercially customary and standard covenants, warranties and guarantees with respect to the performance of the Work,
Landlord’s sole obligation to Tenant with respect to such defects, however, shall be to use commercially reasonable efforts
to enforce any covenants or guaranties of its contractors or subcontractors with respect thereto.

 

(X)         Any
disputes between Tenant and Landlord as to any Unavoidable Delay, Landlord Delay or Tenant Delay shall be decided by arbitration
in accordance with the procedures set forth in this Section X. In the event of any dispute under this Article or any other Article
of this Lease with respect to the determination of the issue of Substantial Completion, or under any other Section of this Lease
that provides for resolution of a dispute in accordance with this Section X. either party may submit the dispute for resolution
in the City of New York in accordance with the Expedited Arbitration Rules of the American Arbitration Association, its successor
or, if it shall cease to exist, an entity performing similar functions (the “AAA”),
provided, however, that (1) the list of arbitrators referred to in Rule 54 shall be returned within five (5) business days from
the date of mailing, (2) the parties shall notify the AAA, by telephone, within three (3) business days, of any objections to
the arbitrator appointed and will have no right to object thereto if the arbitrator so appointed was on the list submitted by
the AAA and was not objected to in accordance with Rule 54, (3) the Notice of Hearing referred to in Rule 55 shall be four business
days in advance of the hearing, (4) the hearing shall be held within seven (7) business days after the appointment of the arbitrator
and (5) the decision and award of the arbitrator shall be final and conclusive on Landlord and Tenant. Judgment shall be entered
on the decision and award of the arbitrator so rendered in any court of competent jurisdiction. The fees and disbursements of
respective counsel engaged by the parties shall be paid by the respective parties and the fees of the arbitrators and the expenses
incident to the proceedings (except the fees of expert witness and other witnesses called or engaged by the parties, which shall
be borne by the party calling such witnesses) shall be paid fifty percent (50%) by Landlord and fifty percent (50%) by Tenant.

 

    	 	-45-	 

     

    

 

ARTICLE
7

 

CERTIFICATE
OF OCCUPANCY: COMPLIANCE WITH LAWS

 

(A)         Landlord
has delivered to the Department of Citywide Administrative Services Certificates of Occupancy or other sufficient indicia of legality
for use of the Demised Premises for the purposes set forth in this Lease, copies of which are attached hereto as Exhibit F.

 

(B)         From
and after the Commencement Date, at Landlord’s sole cost and expense, Landlord shall, except as otherwise herein set forth
(i) comply with all requirements, rules, laws, regulations and orders of Federal, State and local authorities and of any board
of fire underwriters having jurisdiction over the Demised Premises or the real property of which they form a part (including, without
limitation, the Americans With Disabilities Act of 1990 (“ADA”)) as in effect during the Term hereof, as the same may
be extended (collectively, the “Requirements”), and (ii) remove all violations which may be placed against the Demised
Premises or the real property of which they form a part, including, but not limited to, Building Code and Fire Code violations,
except those violations which are caused by Tenant’s manner of use thereof or its breach of the terms of this Lease, which
Tenant is required to comply with under the terms of this Lease or which are caused by other tenants in the Building (which latter
violations Landlord shall diligently proceed to cause to be removed).

 

    	 	-46-	 

     

    

 

Anything
herein to the contrary notwithstanding, (iii) with respect to the ADA and regulations promulgated pursuant thereto, Landlord shall
comply with and perform the Landlord’s obligations, if any, as a public accommodation pursuant to Title III of the ADA (but
it shall be Tenant’s obligation to comply with and perform all obligations with respect to Tenant’s obligation as a
public entity pursuant to Title II of the ADA for the Demised Premises and all common areas that service the Demised Premises in
and around the Building); and (iv) Tenant shall comply with all Requirements applicable to its manner of use of all or any part
of the Demised Premises.

 

(C)         If
Landlord fails to fulfill its obligations pursuant to this Article, Tenant may, in addition to its other remedies, give written
notice to Landlord specifying the respects in which Landlord so failed to perform its obligations and Landlord shall commence performance
of such obligations within three (3) business days after the giving of such notice and diligently proceed to complete the performance
thereof. (For the purpose of all provisions of this Article 7 and Articles 9 and
13, if Landlord’s on-site employees are not capable of performing an obligation of Landlord, then Landlord’s initiating
necessary telephone calls shall be deemed commencement of performance, provided that Landlord diligently and in a continuous manner
follows up such telephone calls with appropriate action.) If Landlord fails so to commence or diligently proceed in a continuous
manner to complete the performance of such obligations after receipt of said written notice, Tenant, in addition to any other remedy
it may have, may (i) as agent of Landlord, perform the same and deduct the reasonable cost thereof from any rent due or that may
become due and payable under this Lease, or (ii) withhold an amount of rent equal to one hundred fifty (150%) percent of the reasonable
cost of performance of such obligations as reasonably determined by Tenant until Landlord performs such obligations to the reasonable
satisfaction of Tenant, at which time any amounts so withheld shall be promptly paid to Landlord.

 

    	 	-47-	 

     

    

 

If
the obligations to be performed by Landlord are required to correct a condition that is hazardous to Tenant’s personnel or
to end an emergency, either of which also renders one full floor or more of the Demised Premises unusable for Tenant’s business
purposes (collectively, “Hazardous Default”). Tenant shall give Landlord and its managing agent immediate notice in
writing by hand delivery and facsimile, and Landlord shall commence the performance of such obligations by the next business day
(or, if the present owners of Landlord still then control Landlord, within the next two (2) business days) after receipt of such
notice and diligently proceed in a continuous manner to complete the performance thereof. If Landlord fails so to commence and
complete the performance of such obligations within the applicable time period after receipt of said notice, as aforesaid, Tenant
may (i) as agent for Landlord, perform the same and deduct the reasonable cost thereof from any rent due or that may become due
and payable under this Lease, or (ii) withhold an amount of rent equal to one hundred fifty (150%) percent of the reasonable cost
of the performance of such obligations as reasonably determined by Tenant until Landlord performs such obligations to the reasonable
satisfaction of Tenant, at which time any amounts so withheld shall be promptly paid to Landlord, or (iii) give Landlord and its
managing agent a second notice (the “Second Notice”) of said default in the manner above provided.

 

    	 	-48-	 

     

    

 

Furthermore,
if Tenant provides a Second Notice to Landlord of a Hazardous Default and Landlord thereafter fails to commence to cure such Hazardous
Default within three (3) days following receipt of the Second Notice, or fails thereafter diligently to proceed with continuity
to cure said default and, as a result of Landlord’s failure, (a) at least 28,754 rentable square feet of the Demised Premises
is rendered unusable for Tenant’s business purposes and (b) Tenant removes its personnel from such portion of the Demised
Premises, then Tenant may terminate this Lease on five (5) days written notice to Landlord.

 

If
Tenant discontinues use of any part or all of the Demised Premises because of Landlord’s failure to perform its obligations
under this Article, the rent shall be reduced proportionately to the space not being used by Tenant by reason of such failure until
such obligations are substantially completed (or, if earlier, until Tenant resumes use of such space).

 

If
Tenant is still able to use the Demised Premises for the purposes set forth in this Lease, but Landlord’s failure timely
to perform its obligations under this Article adversely affects Tenant’s operations within the Demised Premises in a material
manner, Tenant shall be entitled, during such period, to a bona fide equitable reduction in rent.

 

Anything
herein to the contrary notwithstanding, (i) Tenant’s rights under the foregoing provisions are conditioned upon it having
sent a copy of all of the above notices to the first mortgagee of the Building as provided in Article 21 hereof at the same time
as it sends any such notice to Landlord; and (ii) all of the above time periods and Tenant’s rights for Landlord’s
failure to perform its obligations are subject to extension by reason of Unavoidable Delay(s).

 

    	 	-49-	 

     

    

 

Once
Tenant has sent Landlord notice of a default under this Article, Landlord will keep Tenant advised of the status of Landlord’s
performance of its defaulted obligations.

 

ARTICLE
8

 

REAL
ESTATE TAXES, ASSESSMENTS, WATER RATES,

 

SEWER
RENTS, ARREARS

 

(A)         Landlord
shall pay, on or before the due date thereof, all real estate taxes, assessments, water rates and sewer rents levied against the
Building and Land and Parking Lot or that may be liens thereon. Landlord shall provide Tenant with receipted bills, payment receipts
or other back-up information reasonably satisfactory to Tenant evidencing Landlord’s payment thereof within fifteen (15)
business days after Tenant shall give notice to Landlord requesting such evidence of payment. Should Landlord fail to pay said
taxes, assessments, water rates and sewer rents when due, then Tenant, in addition to any and all other remedies it may have, may,
after not less than thirty (30) days notice to Landlord, apply any rent due or that may become due and payable under this Lease
to the payment of said taxes, assessments, water rates and sewer rents and so long as any of such items are unpaid, no action or
proceeding may be maintained by Landlord against Tenant for nonpayment of rent so applied.

 

(B)         Additionally,
if Landlord is in any other arrears to the City of New York on the Land, Building and/or Demised Premises, including but not limited
to rents, mortgage payments, taxes, water and sewer charges and other payments or obligations payable to the City of New York after
thirty (30) days notice from Tenant to Landlord and Landlord’s failure to make such payment within such thirty (30) day period,
then Tenant may apply any rent due or that may become due and payable under this Lease to the payment of such arrears and as long
as such arrears are unpaid, no action or proceeding may be maintained by Landlord against Tenant for nonpayment of rent so applied.

 

    	 	-50-	 

     

    

 

ARTICLE
9

 

LANDLORD’S
SERVICES

 

(A)         Landlord
shall (consistent with the operation of a similar office building) provide hot and cold water for ordinary lavatory, drinking
and cleaning purposes, adequate elevator service (i.e., elevator service at least substantially equal to that set forth
in Exhibit C annexed hereto and in compliance with the ADA), maintain the public entrances, passageways, doors, doorways, elevators,
stairs or other public parts of the building (collectively “common areas”), perform regular monthly extermination
services to the common areas, and (except as otherwise herein provided) maintain the bathrooms on each floor of
the Office Space and the heating, ventilation and air-conditioning equipment serving the Office Space in good working order so
as (i) to provide air conditioning during
the summer months at an average inside design temperature of seventy-five (75) degrees Fahrenheit dry bulb and a room relative
humidity of fifty percent (50%) when the outside temperature is ninety-five (95) degrees Fahrenheit dry bulb coincident with a
wet bulb temperature of seventy-five (75) degrees Fahrenheit, provided that, with respect to air conditioning, Tenant keeps all
windows in the Demised Premises fully closed, keeps the blinds closed in all windows exposed to direct sunlight and maintains
a lighting and equipment load of not more than 4 1⁄2 watts per rentable square foot ( except for air-conditioning electrical
load) and a people load of not more than one person per 100 square feet; and (ii) to provide heating during the winter months
at an average inside design temperature of seventy-two (72) degrees Fahrenheit dry bulb when the outside temperature is zero (0)
degrees Fahrenheit dry bulb with a wind velocity of fifteen (15) miles per hour.

 

    	 	-51-	 

     

    

 

Notwithstanding
the foregoing, necessary repairs and maintenance to the bathrooms in the Office Space due to negligence or improper conduct
of Tenant, its employees, agents, contractors or invitees, shall be performed by Landlord, at Tenant’s request and at
Tenant’s reasonable expense, which shall be paid by Tenant to Landlord within forty-five (45) days after Landlord bills
Tenant ( with reasonable supporting documentation).

 

The
foregoing Landlord’s services shall be provided during the hours of 8:00 a.m. to 6:00 p.m. on Monday through Friday, and
Saturday 8:00 a.m. to 1:00 p.m. inclusive, New York City holidays excluded (“Normal Business Hours”), except that elevator
service and access to the Demised Premises shall be provided twenty-four (24) hours per day, seven (7) days per week, subject to
Landlord’s reasonable rules and regulations. Upon Tenant’s timely request, Landlord shall provide overtime air-conditioning
outside of Normal Business Hours at 103% of Landlord’s reasonably necessary actual cost of providing said service, for which
cost Tenant shall reimburse Landlord within forty-five (45) days of receiving Landlord’s bill therefor (with reasonable supporting
documentation).

 

No
later than the Commencement Date, Landlord shall enter into a separate agreement for the maintenance of the Units, subject to Tenant’s
prior reasonable approval and at Tenant’s expense. Such agreement shall remain in effect during the Term of and shall provide
that the contractor shall perform all of the preventive maintenance measures set forth in Exhibit G, attached hereto and made a
part hereof. The contractor shall adhere to industry-wide standards in performing its obligations under the maintenance agreement.
The maintenance agreement shall further provide that within ten (10) business days after inspecting the Units the contractor shall
prepare a written report. Such report shall (1) summarize the contractor’s findings and recommendations for maintenance service
and (2) state whether maintenance service has been rendered. The contractor shall submit a copy of the report to Tenant within
fifteen (15) days after it is completed.

 

    	 	-52-	 

     

    

 

Landlord
also shall maintain the Parking Lot. Necessary structural repairs shall be made at Landlord’s expense. Non-structural repairs
and repaving, when reasonably deemed necessary by Landlord, shall be performed by Landlord, subject to Tenant’s reasonable
prior approval, and Tenant shall, within forty-five (45) days after being billed therefor, reimburse Landlord for the reasonable
costs so incurred, provided Landlord supplies reasonable supporting documentation.

 

(B)         If
Landlord fails to fulfill its obligations pursuant to this Article, Tenant may, in addition to its other remedies, give written
notice to Landlord specifying the respects in which Landlord so failed to perform its obligations and Landlord shall commence performance
of such obligations (including, but not limited, to placing necessary phone calls to staff or contractors) within three (3) business
days after the giving of such notice and diligently proceed to complete the performance thereof. If Landlord fails so to commence
or diligently proceed in a continuous manner to complete the performance of such obligations after receipt of said written notice,
Tenant, in addition to any other remedy it may have, may (1) as agent of Landlord, perform the same and deduct the reasonable cost
thereof from any rent due or that may become due and payable under this Lease, or (2) withhold an amount of rent equal to one hundred
fifty (150%) percent of the reasonable cost of performance of such obligations as reasonably determined by Tenant until Landlord
performs such obligations to the reasonable satisfaction of Tenant, at which time any amounts so withheld shall be promptly paid
to Landlord.

 

    	 	-53-	 

     

    

 

If
the obligations to be performed by Landlord are required to correct a Hazardous Default, Tenant shall give Landlord and its managing
agent immediate notice in writing by hand delivery and facsimile, and Landlord shall commence the performance of such obligations
by the next business day after receipt of such notice and diligently proceed in a continuous manner to complete the performance
thereof. If Landlord fails to so commence and complete the performance of such obligations within the applicable time period after
receipt of said notice, as aforesaid, Tenant may (1) as agent for Landlord, perform the same and deduct the reasonable cost thereof
from any rent due or that may become due and payable under this Lease, or (2) withhold an amount of rent equal to one hundred fifty
(150%) percent of the reasonable cost of the performance of such obligations as reasonably determined by Tenant until Landlord
performs such obligations to the reasonable satisfaction of Tenant, at which time any amounts so withheld shall be promptly paid
to Landlord, or (3) give Landlord and its managing agent a second notice (the “Second Notice”) of said default in the
manner above provided.

 

Furthermore,
if Tenant provides a Second Notice to Landlord of a Hazardous Default and Landlord thereafter fails to commence to cure such Hazardous
Default within three (3) days following receipt of the Second Notice, or fails thereafter diligently to proceed with continuity
to cure said default and, as a result of Landlord’s failure, (a) at least 28,754 rentable square feet of the Demised Premises
is rendered unusable for Tenant’s business purposes and (b) Tenant removes its personnel from such portion of the Demised
Premises, then Tenant may terminate this Lease on five (5) days written notice to Landlord.

 

If
Tenant discontinues use of any part or all of the Demised Premises because of Landlord’s failure to perform its obligations
under this Article, the rent shall be reduced proportionately to the space not being used by Tenant by reason of such failure until
such obligations are substantially completed (or, if earlier, until Tenant resumes use of such space).

 

    	 	-54-	 

     

    

 

 

If
Tenant is still able to use the Demised Premises for the purposes set forth in this Lease, but Landlord’s failure timely
to perform its obligations under this Article adversely affects Tenant’s operations within the Demised Premises in a material
manner, Tenant shall be entitled, during such period, to a bona fide equitable reduction in rent.

 

Anything
herein to the contrary notwithstanding, (1) Tenant’s rights under the foregoing provisions are conditioned upon it having
sent a copy of all of the above notices to the first mortgagee of the Building as provided in Article 21 hereof at the same time
as it sends any such notice to Landlord; and (2) all of the above time periods and Tenant’s rights for Landlord’s failure
to perform its obligations are subject to extension by reason of Unavoidable Delay(s).

 

Once
Tenant has sent Landlord notice of a default under this Article, Landlord will keep Tenant advised of the status of Landlord’s
performance of its defaulted obligations.

 

ARTICLE
10

 

TENANT’S
SERVICES

 

Tenant
shall pay for its electricity directly to the public utility company, as measured by meters and wiring to be provided by Landlord
as part of the Work set forth in Article 6 above unless already in place. Tenant shall provide its own cleaning and rubbish
removal services.

 

    	 	-55-	 

     

    

 

ARTICLE
11

 

ALTERATIONS
BY TENANT

 

Except
for (i) carpeting, painting and cosmetic alterations, and (ii) non-structural alterations which do not impact or affect any
Building systems and do not require plans and/or a building permit, neither of which shall require Landlord’s prior
consent, Tenant, upon written notice to Landlord and with Landlord’s prior written consent, which consent shall not be
unreasonably withheld or delayed, may make alterations, installations, additions and improvements in and to the Demised
Premises at Tenant’s sole expense. All such work performed by Tenant shall be performed in compliance with all
applicable Requirements. Tenant may make decorations and erect signs within the Demised Premises not visible from outside the
Demised Premises without Landlord’s prior written consent, and Landlord agrees not unreasonably to withhold its consent
to any such decorations and signs that are visible from outside the Demised Premises. All property of whatever kind or nature
in or on the Demised Premises owned, installed or paid for by Tenant shall be and remain the property of Tenant and upon the
termination of this Lease or any holdover period, Tenant shall have the option of removing such property or of surrendering
such property (including partition systems and/or furniture located in the Demised Premises) to Landlord, in either event
without any liability to Landlord; provided, however, if any moveable personal property, refuse or rubbish is surrendered, it
may be removed by Landlord at Tenant’s expense. Tenant shall exercise its option by giving written notice to Landlord
within thirty (30) days prior to the termination of this Lease or any holdover period. If Tenant shall fail to give such
notice or shall fail to remove such property upon termination of this Lease or any holdover period, the property shall be
deemed to be surrendered.

 

ARTICLE
12

 

END
OF TERM

 

Upon
the expiration or other termination of the Term, Tenant shall quit and surrender the Demised Premises in good order and condition
with ordinary wear and tear, and damage by the elements, including fire or other casualty, excepted, and in accordance with the
provisions of Article 11.

 

    	 	-56-	 

     

    

 

ARTICLE
13

 

REPAIRS

 

(A)         Landlord
shall remove all graffiti from the common areas of the Building and its exterior, make all exterior and structural repairs including
maintenance, repair or replacement of the windows, roof, plumbing, electrical, heating, ventilation and air conditioning systems,
and all repairs needed because of Landlord’s negligence or because of defective materials or workmanship in the construction
and/or improvement by Landlord of the Demised Premises or of the Building of which they are a part, and repair and maintain any
sidewalks, curbs and passageways adjoining and/or appurtenant to the Building in good, clean and orderly condition, free of dirt,
rubbish, snow, ice and unlawful obstruction. Notwithstanding the foregoing, Landlord shall not be required to perform any such
graffiti removal, repairs, maintenance or replacement necessitated by the negligence or improper conduct of Tenant or its invitees.

 

(B)         If
Landlord fails to fulfill its obligations pursuant to this Article, Tenant may, in addition to its other remedies, give written
notice to Landlord specifying the respects in which Landlord so failed to perform its obligations and Landlord shall commence performance
of such obligations (including, but not limited to placing necessary phone calls with staff or contractors) within three (3) business
days after the giving of such notice and diligently proceed to complete the performance thereof. If Landlord fails to so commence
or diligently proceed in a continuous manner to complete the performance of such obligations after receipt of said written notice,
Tenant, in addition to any other remedy it may have, may (1) as agent of Landlord, perform the same and deduct the reasonable cost
thereof from any rent due or that may become due and payable under this Lease, or (2) withhold an amount of rent equal to one hundred
fifty (150%) percent of the reasonable cost of performance of such obligations as reasonably determined by Tenant until Landlord
performs such obligations to the reasonable satisfaction of Tenant, at which time any amounts so withheld shall be promptly paid
to Landlord.

 

    	 	-57-	 

     

    

 

 

If
the obligations to be performed by Landlord are required to correct a Hazardous Default, Tenant shall give Landlord and its managing
agent immediate notice in writing by hand delivery and facsimile, and Landlord shall commence the performance of such obligations
by the next business day after receipt of such notice and diligently proceed in a continuous manner to complete the performance
thereof. If Landlord fails so to commence and complete the performance of such obligations within the applicable time period after
receipt of said notice, as aforesaid, Tenant may (1) as agent for Landlord, perform the same and deduct the reasonable cost thereof
from any rent due or that may become due and payable under this Lease, or (2) withhold an amount of rent equal to one hundred fifty
(150%) percent of the reasonable cost of the performance of such obligations as reasonably determined by Tenant until Landlord
performs such obligations to the reasonable satisfaction of Tenant, at which time any amounts so withheld shall be promptly paid
to Landlord, or (3) give Landlord and its managing agent a second notice (the “Second Notice”) of said default in the
manner above provided.

 

Furthermore,
if Tenant provides a Second Notice to Landlord of a Hazardous Default and Landlord thereafter fails to commence to cure such Hazardous
Default within three (3) days following receipt of the Second Notice, or fails thereafter diligently to proceed with continuity
to cure said default and, as a result of Landlord’s failure, (1) at least 28,754 rentable square feet of the Demised Premises
is rendered unusable for Tenant’s business purposes and (2) Tenant removes its personnel from such portion of the Demised
Premises, then Tenant may terminate this Lease on five (5) days written notice to Landlord.

 

    	 	-58-	 

     

    

 

 

If
Tenant discontinues use of any part or all of the Demised Premises because of Landlord’s failure to perform its obligations
under this Article, the rent shall be reduced proportionately to the space not being used by Tenant by reason of such failure until
such obligations are substantially completed (or, if earlier, until Tenant resumes use of such space).

 

If
Tenant is still able to use the Demised Premises for the purposes set forth in this Lease, but Landlord’s failure to timely
perform its obligations under this Article adversely affects Tenant’s operations within the Demised Premises in a material
manner, Tenant shall be entitled, during such period, to a bona fide equitable reduction in rent.

 

Anything
herein to the contrary notwithstanding, (1) Tenant’s rights under the foregoing provisions are conditioned upon it having
sent a copy of all of the above notices to the first mortgagee of the Building as provided in Article 21 hereof at the same time
as it sends any such notice to Landlord; and (2) all of the above time periods and Tenant’s rights for Landlord’s failure
to perform its obligations are subject to extension by reason of Unavoidable Delay(s).

 

Once
Tenant has sent Landlord notice of a default under this Article, Landlord will keep Tenant advised of the status of Landlord’s
performance of its defaulted obligations.

 

(C)         Tenant
shall make ordinary and non-structural interior repairs, excluding any such repairs the necessity for which is caused by Landlord
or Landlord’s employees, agents or invitees, for which Landlord shall be responsible.

 

ARTICLE
14

 

CONDEMNATION

 

If
the whole of the Demised Premises shall be taken in condemnation, this Lease shall terminate upon the vesting of title in the condemnor
and all rent and other charges paid or payable by Tenant shall be apportioned as of the date of vesting of title in such condemnation
proceeding.

 

    	 	-59-	 

     

    

 

If
only part of the Demised Premises shall be so taken in condemnation, then Tenant may either (1) terminate this Lease as to the
remainder of the Demised Premises on ten (10) days written notice to Landlord if the balance of the Demised Premises cannot be
used in Tenant’s reasonable judgment for their intended purpose (except that Tenant may not so terminate this Lease if all
or any portion of the Parking Lot, but none of the internal space, is taken), or (2) remain in possession of the remaining portion
of the Demised Premises under all of the terms, conditions and covenants of this Lease, except that the rent thereafter shall be
apportioned and reduced from the date of each such partial taking based on the number of square feet in the part remaining. The
proceeds of any award for partial taking shall be applied by Landlord to the repair, restoration or replacement of the remaining
premises, and if there be any deficiency, it shall be made up by Landlord, but if there be any surplus, it shall belong to Landlord.
Said repairs, restoration or replacement of the remaining premises shall be completed within six (6) months after the aforesaid
taking in condemnation ( subject to Unavoidable Delays) pursuant to plans and specifications approved by the DRES unless prevented
by the condemning authority. In the event said repairs, restoration or replacement are not completed within said six (6) months
period, Tenant, in addition to any other remedy it may have, may terminate this Lease or perform said repairs, restoration and
replacement and deduct the cost thereof from any rent which may be due and payable under this Lease. Tenant shall be entitled to
file a claim for an award solely for its trade fixtures.

 

    	 	-60-	 

     

    

 

ARTICLE
15

 

DESTRUCTION
BY FIRE OR OTHER CASUALTY

 

(A)         If
(1) the whole of the Demised Premises is totally destroyed or damaged by fire or other casualty, or (2) the Demised Premises are
damaged to such an extent that an independent licensed architect or engineer retained by Landlord estimates and so certifies to
both parties that they will be unsuitable or untenantable for use for the purpose for which they are leased for a period of more
than nine (9) months (which estimate Landlord will obtain with reasonable diligence after the casualty), then from the date of
such damage or destruction (the damage or destruction described in clauses (1) and (2) being called a “Total Casualty”),
the rent shall cease until such time as Landlord fully repairs and restores the same to suitable and tenantable condition as certified
by the DRES, such certification not to be unreasonably withheld or delayed (or, if earlier, the date on which Tenant actually occupies
the Demised Premises or any part thereof).

 

In
the event of a Total Casualty, either party may terminate this Lease by notice to the other within thirty (30) days after the date
of such Total Casualty (or, if later, after the date on which the certification of the independent architect or engineer is received).
If no such notice is given. Landlord shall, within fifteen (15) days after settlement of its insurance claim (which Landlord shall
promptly and diligently prosecute in good faith), commence and diligently proceed with continuity to complete the repairs and restoration
of the Demised Premises to their condition prior to said Total Casualty, suitable for use for the purpose for which the Demised
Premises were leased. If Landlord fails to commence said repairs and restoration as above provided, or to complete the same within
nine (9) months after such commencement (subject to Unavoidable Delays), Tenant may terminate this Lease on thirty (30) days written
notice (unless such failure is cured within such thirty (30) days) or, in addition to any other remedy it may have, may perform
such repairs and restoration and reimburse itself for the cost thereof from any rent due or that may become due and payable under
this Lease.

 

    	 	-61-	 

     

    

 

(B)         If
the Demised Premises are partially damaged by fire or other casualty not described in Section (A) above, Landlord shall, within
fifteen (15) days after settlement of its insurance claim (which Landlord shall promptly and diligently prosecute in good faith),
commence and diligently proceed to complete the repairs and restoration of the Demised Premises to their condition prior to said
fire or casualty. If Landlord fails to commence as aforesaid or to complete the same within six (6) months after such commencement
(subject to Unavoidable Delays), Tenant, in addition to any other remedy it may have, may terminate this Lease by giving Landlord
thirty (30) days’ written notice (unless such failure is cured within such thirty (30) days) or may perform such repairs
and restoration and reimburse itself for the cost thereof from any rent due or which may become due under this Lease.

 

From
the dale of such damage to the date that the entire Demised Premises have been completely restored as certified by DRES, such certification
not to be unreasonably withheld or delayed (or, if earlier, the date on which Tenant actually occupies the damaged portion of the
Demised Premises or any part thereof), Tenant shall pay rent for that part of the Demised Premises it is using during the alterations
and repairs on a square foot basis in an amount equal to the product of the dollar amount of rent per square foot allocable to
such space payable on such date and the number of square feet being occupied by Tenant.

 

    	 	-62-	 

     

    

 

ARTICLE
16

 

NO
EMPLOYEE OF CITY HAS ANY INTEREST IN LEASE

 

Landlord
warrants and represents that no officer, agent, employee or representative of The City of New York has received any payment or
other consideration for the making of this Lease and that no officer, agent, employee or representative of The City of New York
has any interest, directly or indirectly, in this Lease or the proceeds thereof.

 

ARTICLE
17

 

QUIET
ENJOYMENT

 

Landlord
covenants that Tenant, paying the rent reserved herein, and performing all of the other terms, covenants and conditions on its
part to be performed, shall and may peaceably and quietly have, hold and enjoy the Demised Premises for the use and purpose stated
in this Lease or for such other similar purposes as the Commissioner of City wide Administrative Services may determine.

 

ARTICLE
18

 

ACCESS
BY DISABLED PERSONS

 

Landlord
covenants that, during the Term, access to the Building and the path of travel to the Demised Premises shall be suitable for use
by disabled persons in accordance with the ADA.

 

    	 	-63-	 

     

    

 

ARTICLE
19

 

SUBORDINATION
AND NON-DISTURBANCE

 

(A)         This
Lease shall be subject and subordinate to all present and future mortgages and/or ground and underlying leases, that may affect
the Land and/or Building and/or Parking Lot, provided, and as a condition precedent to the subordination of this Lease to any
present or future mortgages and/or ground and/or underlying leases, that the mortgagee under any such mortgage and/or lessor and/or
lessees under any such ground or underlying lease, shall execute and deliver to Tenant an agreement in recordable form and substantially
in the form attached hereto as Exhibit “H” and made a part hereof (the “SNDA”), whereby said mortgagees
and/or lessor and/or lessees, agree that should it become necessary to foreclose such mortgage or should the mortgagee and/or lessor
and/or lessee under any ground or underlying lease, otherwise come into possession of the Land and/or Building and/or Parking Lot,
such mortgagee and/or lessor or lessees will not join Tenant under this Lease in foreclosure or summary proceedings and will not
disturb the use and occupancy of Tenant under this Lease so long as Tenant is not in default under any of the terms, covenants
and conditions of this Lease, beyond any applicable notice or grace period, and Tenant agrees to attorn to such mortgagee and/or
lessor and/or lessee as Tenant’s landlord hereunder.

 

(B)         Landlord
represents that there are no mortgages or ground or underlying leases presently affecting the Building, Land and/or Parking Lot.
Notwithstanding the foregoing, if there are any such mortgages, underlying or ground leases when Tenant advises Landlord that it
has received all necessary government approvals and is ready to execute this Lease, Landlord will cause its mortgagee (s) and/or
underlying or ground lessors and/or lessees to execute the SNDA forthwith and deliver it to Tenant as a pre-condition of Tenant
executing this Lease. Landlord’s failure to notify Tenant of the existence of any such mortgage and/or underlying or ground
lease, and obtain the SNDA from such mortgagee and/or underlying or ground lessor and/or lessee, promptly alter notice from Tenant
shall be grounds for rescission of this Lease by Tenant at any time, prior to Landlord obtaining the SNDA.

 

    	 	-64-	 

     

    

 

(C)         To
the extent that the provisions of any applicable SNDA are inconsistent with the provisions of this Article, then, as between the
parties to such SNDA, the SNDA shall govern.

 

ARTICLE
20

 

TENANT
NOT A HOLDOVER TENANT

 

Landlord
agrees not to hold Tenant liable as holdover tenant should it continue to occupy the Demised Premises or any portion thereof after
the expiration of the Term or any renewal thereof, if any, but, in any such event, Tenant shall be deemed to be a tenant from month
to month at a rental not less than the same rental (including escalation rent payable pursuant to Article 4) as that of the last
month of the demised Term and the liability of Tenant shall in no event be greater than that of a Tenant from month to month, any
law to the contrary notwithstanding.

 

ARTICLE
21

 

NOTICES

 

(A)         Any
notice (not including rent bills, and except where a specific provision of this Lease provides otherwise) required to be given
shall be in writing and shall be sent by certified mail, return receipt requested or by overnight delivery, or, in connection
with Article 6 in addition by facsimile, at the following numbers for Landlord : Robert Getreu (212) 716-3522 and Ken Levien
(212) 702-8758, and for Tenant (DRES) at (212) 669-3640 and (212) 669-3191, and addressed as follows:

 

(1)         If
to Landlord, to Landlord at the address hereinbefore set forth with a copy to the attention of Howard Glatzer, c/o Blackacre Capital
Management, LLC, 450 Park Avenue, New York, N.Y. 10022, and with a second copy to the managing agent of the Building (currently,
attention of Robert Getreu, c/o Williams Real Estate Co. Inc., 380 Madison Avenue, New York, N.Y. 10017) and, in the case of all
notices of an alleged default, with a copy to each first mortgagee of which Tenant has received notice of such mortgagee’s
name and address; and

 

    	 	-65-	 

     

    

 

(2)         If
to Tenant, to Tenant addressed to:

 

ASSISTANT
COMMISSIONER FOR

LEASING
AND SPACE DESIGN

Department
of Citywide Administrative Services

Division
of Real Estate Services

1
Centre Street, 20th Floor North

New
York, N.Y. 10007

and

Human
Resources Administration

Office
of Facilities Management

180
Water Street

New
York, NY 10038

and
Department of Environmental Protection

Facilities
Management

59-17
Junction Boulevard

Flushing,
New York 11368

Landlord
and its managing agent shall at all times maintain an address in Manhattan or Brooklyn for the purpose of receiving notices
by hand delivery.

 

Either
party may change its address as set forth herein by notice to the other in the manner provided for herein, provided that no notice
of change of address shall be effective until the month following the month in which notice is given. Notices shall be deemed given
as of the third (3rd) business day after mailing or the next day if mailed by overnight courier, except that notices sent by hand
delivery and facsimile shall be deemed given when received.

 

(B)         Special
Notices: In addition to any other notices expressly required under this Lease to be given by Landlord to Tenant, Landlord shall
immediately give written notice to Tenant of (1) the giving of any notice or the taking of any action by the holder of any mortgage
of the Building, the result of which may be the foreclosure of, or the sale or taking of possession of, all or any part of the
Building, (2) the commencement of a case in bankruptcy or under the laws of any slate naming Landlord as the debtor, or (3) the
making by Landlord of an assignment or any other arrangement for the benefit of creditors under any state statute.

 

    	 	-66-	 

     

    

 

(C)         Notwithstanding
the foregoing, service of process to commence a summary proceeding pursuant to Article 7 of the Real Property Actions and Proceeding
Law relating to an occupancy by the City of New York or its agencies or officers of the Demised Premises which at its commencement
was authorized under this Lease shall be served in the manner required by CPLR. Section 311.

 

ARTICLE
22

 

FORCE
MAJEURE

 

Landlord,
Tenant or any fee or leasehold mortgagee shall not be deemed in default if it is delayed in the performance of any act, matter
or thing which it is obligated to perform hereunder (other than Tenant’s obligation to pay rent and additional rent and Landlord’s
monetary obligations to Tenant, if any), if such delay is an “Unavoidable Delay.” An “Unavoidable Delay”
shall mean (i) strikes, lockouts, or labor disputes, (ii) acts of God, governmental restrictions, regulations or controls, enemy
or hostile governmental actions, civil commotion, insurrection, revolution, sabotage, fire, other casualty or other conditions
similar to those enumerated in this Article, (iii) shortages of labor or materials, or (iv) any other circumstance beyond the applicable
party’s reasonable control. In the event of any Unavoidable Delay, all dates for performance shall automatically be extended
by a period equal to the aggregate period of all such Unavoidable Delays.

 

    	 	-67-	 

     

    

 

ARTICLE
23

 

SAVE
HARMLESS

 

Landlord
and Tenant shall each indemnify and hold harmless the other party from and against any and all liability, fines, suits, claims,
demands, expenses and actions of any kind or nature arising by reason of injury to person or property occurring on or about the
Demised Premises, the Building or the Land, occasioned in whole or in part by its acts or omissions or the acts or omissions of
any person present by its license and/or permission, express or implied, or by reason of performing preventive maintenance pursuant
to a maintenance contract, or by reason of Landlord’s failure to comply with obligations arising under the ADA as set forth
in Article 7 of this Lease.

 

ARTICLE
24

 

INVESTIGATIONS

 

(A)         The
parties to this agreement agree to cooperate fully and faithfully with any investigation, audit or inquiry conducted by a State
of New York (State) or City of New York (City) governmental agency or authority that is empowered directly or by designation to
compel the attendance of witnesses and to examine witnesses under oath, or conducted by the Inspector General of a governmental
agency that is a party in interest to the transaction, submitted bid, submitted proposal, contract, lease, permit, or license that
is the subject of the investigation, audit or inquiry.

 

(B)         (1)
If any person who has been advised that his or her statement, and any information from such statement, will not be used against
him or her in any subsequent criminal proceeding refuses to testify before a grand jury or other governmental agency or authority
empowered directly or by designation to compel the attendance of witnesses and to examine witnesses under oath concerning the award
of or performance under any transaction, agreement, lease, permit, contract, or license entered into with the City, the State,
or any political subdivision or public authority thereof, or the Port Authority of New York and New Jersey, or any local development
corporation within the City, or any public benefit corporation organized under the laws of the State of New York; or

 

    	 	-68-	 

     

    

 

(2)         If
any person refuses to testily for a reason other than the assertion of his or her privilege against self-incrimination in an investigation,
audit or inquiry conducted by a City or State governmental agency or authority empowered directly or by designation to compel the
attendance of witnesses and to take testimony under oath, or by the Inspector General of the governmental agency that is a party
in interest in, and is seeking testimony concerning the award of, or performance under, any transaction, agreement, lease, permit
contract, or license entered into with the City, the State, or any political subdivision thereof or any local development corporation
within the City, then the commissioner or agency head whose agency is a party in interest to the transaction, submitted bid, submitted
proposal, contract, lease, permit, or license shall convene a hearing, upon not less than five (5) days written notice to the parties
involved to determine if any penalties should attach for the failure of a person to testify.

 

(3)         If
any non-governmental party to the hearing requests an adjournment, the commissioner or agency head who convened may, upon granting
the adjournment, suspend any contract, lease, permit, or license pending the final determination pursuant to Section (D) below
without the City incurring any penalty or damages for delay or otherwise.

 

(C)         The
penalties which may attach after a final determination by the commissioner or agency head may include but shall not exceed:

 

    	 	-69-	 

     

    

 

(a)          The
disqualification for a period not to exceed five (5) years from the date of an adverse determination for any person, or any entity
of which such person was a member at the time the testimony was sought, from submitting bids for, or transacting business with,
or entering into or obtaining any contract, lease, permit or license with or from the City; and/or

 

(b)          The
cancellation or termination of any and all such existing City contracts, leases, permits or licenses that the refusal to testify
concerns and that have not been assigned as permitted under this agreement, nor the proceeds of which pledged, to an unaffiliated
and unrelated institutional lender for fair value prior to the issuance of the notice scheduling the hearing, without the City
incurring any penalty or damages on account of such cancellation or termination; monies lawfully due for goods delivered, work
done, rentals, or fees accrued prior to the cancellation or termination shall be paid by the City.

 

(D)         The
commissioner or agency head shall consider and address in reaching his or her determination and in assessing an appropriate penalty
the factors in paragraphs (1) and (2) below. He or she may also consider, if relevant and appropriate, the criteria established
in paragraphs (3) and (4) below in addition to any other information which may be relevant and appropriate:

 

(1)         The
party’s good faith endeavors or lack thereof to cooperate fully and faithfully with any governmental investigation or audit,
including but not limited to the discipline, discharge, or disassociation of any person failing to testify, the production of accurate
and complete books and records, and the forthcoming testimony of all other members, agents, assignees or fiduciaries whose testimony
is sought.

 

(2)         The
relationship of the person who refused to testify to any entity that is a party to the hearing, including, but not limited to,
whether the person whose testimony is sought has an ownership interest in the entity and/or the degree of authority and responsibility
the person has within the entity.

 

(3)         The
nexus of the testimony sought to the subject entity and its contracts, leases, permits or licenses with the City.

 

    	 	-70-	 

     

    

 

(4)         The
effect a penalty may have on an unaffiliated and unrelated party or entity that has a significant interest in an entity subject
to penalties under 1.4 above, provided that the party or entity has given actual notice to the commissioner or agency head upon
the acquisition of the interest, or at the hearing called for in 1.3(a) above gives notice and proves that such interest was previously
acquired. Under either circumstance the party or entity must present evidence at the hearing demonstrating the potential adverse
impact a penalty will have on such person or entity.

 

(E)         (1)         The
term “license” or “permit” as used herein shall be defined as a license, permit, franchise or concession
not granted as a matter of right.

 

(2)         The
term “person” as used herein shall be defined as any natural person doing business alone or associated with another
person or entity as a partner, director, officer, principal or employee.

 

(3)         The
term “entity” as used herein shall be defined as any firm, partnership, corporation, association, or person that receives
monies, benefits, licenses, leases, or permits from or through the City or otherwise transacts business with the City.

 

(4)         The
term “member” as used herein shall be defined as any person associated with another person or entity as a
partner, director, officer, principal or employee.

 

(F)         In
addition to and notwithstanding any other provision of this Lease, the Commissioner or agency head may in his or her sole discretion
terminate this Lease upon not less than three (3) days written notice in the event contractor fails to promptly report in writing
to the Commissioner of Investigation of the City of New York any solicitation of money, goods, requests for future employment of
other benefit or thing of value, by or on behalf of any employee of the City or other person, firm, corporation or entity for any
purpose which may be related to the procurement or obtaining of this Lease by Landlord, or affecting the performance of this Lease.

 

    	 	-71-	 

     

    

 

ARTICLE
25

 

SIGNIFICANT
RELATED PARTY TRANSACTIONS

 

Landlord
shall be required to disclose and notify Tenant of any transactions with significant related parties, including subsidiaries and
affiliates of Landlord, the costs of which are charged to Tenant as rent, including, but not limited to, Base Year Operating Expenses,
overtime HVAC, Tenant repairs and common area electricity. Landlord shall provide Tenant with written notice of such transactions
upon submission of invoices for Rent or at the end of the twelve (12) month period in which the transactions to be billed as rent
were performed by significant related parties. When such transactions occur, prices of the same must be in line with normal industry
practice in New York City. Landlord’s failure to notify Tenant of such related party transactions shall result in a disallowance
of such costs that would otherwise be billed as rent. If such related party transactions occurred and were disclosed, but it is
found by Tenant that the costs thereof exceed normal industry costs in an arms length third party transaction in New York City,
then such excessive charges shall be disallowed.

 

    	 	-72-	 

     

    

 

ARTICLE
26

 

ASBESTOS

 

Landlord
and Tenant acknowledge that the entire Office Space has been demolished and that Landlord has delivered to Tenant an ACP-5 pertaining
to the entire Office Space. Landlord agrees, with respect to the floor tiles identified on the Citywide Office of Safety and Health
Report, consisting of two (2) pages, dated February 10, 1999, annexed hereto as Exhibit I and made a part hereof, at its sole
cost and expense, to carpet any such un-demolished floor tiles or cover same with new non-asbestos floor tiles, as part of Substantial
Completion under Article 6 above. Landlord shall, at its sole cost and expense, perform an operations and maintenance program with
respect to the ACM in the Demised Premises and areas of the Building through which Tenant has access to the Office Space. If, at
any time during the Term, asbestos or asbestos-containing material that has deteriorated and/or is required to be removed or encapsulated
under existing law or code, or New York City rules and regulations, or uniformly applicable policy (“ACM”) is discovered
in the Demised Premises (except for ACM introduced into the Demised Premises by Tenant or those claiming through Tenant, which
shall be Tenant’s responsibility). Landlord, at Landlord’s sole cost and expense, and as Tenant’s sole and exclusive
remedy, will immediately (subject to Article 22) cause such ACM to be removed or encapsulated in accordance with all applicable
laws. Rent shall be abated for any portion of the Demised Premises that becomes untenantable during such encapsulation or removal.

 

ARTICLE
27

 

LANDLORD’S
REPRESENTATIONS

 

Landlord
hereby warrants that, to the best of its knowledge, it is not in default of any obligation to the City of New York, nor is Landlord,
its officers, principals or stockholders a defendant in any action instituted by the City. Tenant acknowledges that Landlord is
the plaintiff in a pending action against the City involving responsibility for the cost of the pending repairs to, and repaving
of the Parking Lot (including the Current Repair Work).

 

The
members, directors and officers of the Landlord currently are as follows: Blackacre Livingston LLC (member of Landlord), whose
managing member is Blackacre Capital Group, L.P., whose general partner is Blackacre Capital Management Corp., whose directors
and officers are as follows: (a) Director: Jeffrey B. Citrin; (b) Officers: President—Jeffrey B. Citrin; President-Stephen Feinberg;
Vice President—Ronald Kravit; Vice President—Howard Glatzer.

 

    	 	-73-	 

     

    

 

Any
misrepresentation by Landlord with regard to the above warranty shall constitute a basis for rescission of this Lease.

 

ARTICLE
28

 

NO
WAIVER

 

The
failure by either party to insist, in one or more instances upon the full performance of any of the covenants, conditions or obligations
hereunder of the other party shall not be construed as a waiver of a subsequent breach of the same or any other covenant or condition,
and the consent or approval by either party to or of any act by the other party requiring the consent or approval of the first
party shall not be construed to waive or render unnecessary the consent or approval of the first party to or of any subsequent
similar act by the other party. No provision of this Lease shall be deemed to have been waived by either party unless such waiver
be in writing signed by such party.

 

ARTICLE
29

 

EXCULPATORY
CLAUSE

 

Anything
herein to the contrary notwithstanding, the liability of Landlord and the partners, members or other owners of Landlord for negligence,
failure to perform Lease obligations or otherwise under or in connection with this Lease shall be limited to their respective interests
in the Land and Building and Parking Lot. Tenant shall neither seek to enforce nor enforce any judgment or other remedy against
any other asset of Landlord, any partner in Landlord or any party that holds any interest in Landlord.

 

    	 	-74-	 

     

    

 

ARTICLE
30

 

LEASE
ENTIRE AGREEMENT

 

This
Lease sets forth the entire agreement between the parties, superseding all prior agreements and understandings, written or oral,
and may not be altered or modified except by a writing signed by both parties. This Lease shall be binding upon the parties hereto,
their successors, legal representatives and assigns.

 

ARTICLE
31

 

APPLICABLE
LAW

 

This
Lease shall be governed by and construed in accordance with the internal laws of the State of New York.

 

ARTICLE
32

 

ESTOPPEL
CERTIFICATE

 

Each
party, at any time, and from time to time (but in the case of Landlord being the requesting party only in connection with a financing,
refinancing, sale, purchase or transfer of the Building or its interest in this Lease or other comparable transaction), upon at
least forty-five (45) days prior notice by the requesting party, shall execute, acknowledge and deliver to the requesting party
and/or any other person, firm or corporation specified by the requesting party (“Recipient”), a statement certifying
that this Lease is unmodified and in full force and effect (or, if there have been modifications, that the same is in full force
and effect as modified and stating the modifications), stating the dates to which the rent and additional rent have been paid,
stating whether or not to the best knowledge of the certifying party there exists any defaults by the requesting party under this
Lease, and, if so, specifying each such default, and any other matters reasonably requested by the requesting party or the Recipient.

 

    	 	-75-	 

     

    

 

ARTICLE
33

 

MISCELLANEOUS

 

(A)         Landlord
and 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, unless such injury, loss or damage was caused by or due to the negligence of Landlord or its agents, servants or
employees. Landlord and its agents shall not be liable for any such injury, loss or damage caused by other tenants or persons in,
upon or about the Building or by any construction work performed by those tenants or persons.

 

(B)         Landlord
and its agents shall have the right (but not the obligation) to enter upon the Demised Premises, in an emergency at any time and
at other reasonable times upon prior notice to Tenant, to examine the same and to make such repairs, replacements and improvements
as Landlord may deem necessary or desirable to the Demised Premises or any other portion of the Building. Tenant shall permit Landlord
to use, maintain and replace the present pipes and conduits in and to the Demised Premises and to erect new pipes and conduits
therein provided they are concealed within the walls, floors and/or ceilings. Landlord may (but subject to Article 23), during
the process of any work in the Demised Premises, take all necessary materials and equipment therein without the same constituting
an eviction or entitling Tenant to any damages or abatement of rent while such work is in progress, except as may be provided for
in Articles 9 and 13 above. Landlord agrees to use reasonable efforts to minimize interference with Tenant’s conduct of its
operations and business. Notwithstanding anything to the contrary in the foregoing, and in addition thereto, if Tenant cannot use
more than 50% of any floor or 20% of any storage space in the Demised Premises for more than five (5) consecutive business days
by reason of the foregoing circumstance the pro rata portion of the Base Rent, as set forth in Article 2 hereof, for such
entire floor (s) or entire storage space (s) so affected shall be abated until such time as Tenant can again fully use such space.

 

    	 	-76-	 

     

    

 

(C)         Throughout
the Term, Landlord shall have the right to enter the Demised Premises at reasonable hours upon reasonable prior notice to Tenant
for the purpose of showing the same to respective purchasers or mortgagees of the Building and, during the last eighteen (18) months
of the Term, for the purpose of showing the same to prospective tenants. Landlord agrees to use reasonable efforts to minimize
interference with Tenant’s conduct of its operations and business and with due regard for Tenant’s security needs.

 

(D)         For
the purposes of this Lease, the term “Landlord,” as used in this Lease, means only the owner or the mortgagee in possession
from time to time of the Land and Building and/or Parking Lot (or the owner of a lease of the Building or of the Land and Building
and/or of the Parking Lot), so that in the event of any sale or sales of said Land and Building and/or Parking Lot, or of said
lease, or in the event of a lease of said Building, or the Land and Building, and/or the Parking Lot. the then Landlord shall be
and hereby is entirely freed and relieved of all covenants and obligations of Landlord thereafter accruing, and it shall be deemed
and construed, without further agreement between the parties and the purchaser at any such sale, or the said lessee, that said
purchaser or lessee has assumed and agreed to carry out all covenants and obligations of Landlord hereunder.

 

    	 	-77-	 

     

    

 

(E)         Landlord
and Tenant represent to the other that neither has dealt with any broker in connection with this Lease other than (i) Cushman &
Wakefield, Inc. (“C&W”) and (ii) Williams Real Estate Co., Inc. (“WILLIAMS”) and (iii) JULIEN STUDLEY,
INC. (“JS”) AND ((iv) DIANA & YURAS (“D&Y”) (collectively, “Broker”). Landlord
shall pay any commissions owing to the Broker pursuant to separate agreements. Tenant shall in no event be responsible to pay Broker
any commissions. Tenant and Landlord hereby indemnify and hold each other harmless against all loss, damage, liability, cost and
expense of any nature (including reasonable attorneys’ fees and disbursements) based on any claim by any party (other than
the Broker) with whom such indemnifying party has dealt for a commission or other compensation in connection with this Lease which
is based on the actions of such party or its agents or representatives. The indemnified party shall cooperate with the indemnifying
party in any defense; and the indemnified party shall not settle a claim, liability or action for which the indemnifying party
has the obligation to defend or indemnify without the indemnifying party’s consent. The foregoing indemnifications shall
survive any expiration or termination of this Lease. For the purposes of possible reimbursement under Article 3 above, in connection
with a termination of this Lease under said Article 3, Landlord has provided Tenant a certified copy of the fully executed original
of the brokerage commission agreement(s), dated June 21, 1999, which provides for payment of the commission to C&W on which
Schedule 1 annexed hereto is based.

 

(F)         (1)
In addition to other rights and remedies available under this Lease and applicable law, this Lease and the Term and estate hereby
granted are subject to the further limitations that:

 

(a)          if
Tenant shall default in the payment of any Base Rent or Additional Rent or other charges under this Lease and such default shall
continue for twenty (20) business days in the case of Base Rent or thirty (30) business days in the case of Additional Rent after
Landlord shall have given Tenant notice specifying such failure, except that if Landlord shall have given three (3) such notices
in any twelve (12) month period, Tenant shall not be entitled to any further notice of its delinquency in the payment of Base Rent
and Additional Rent until such time as twelve (12) consecutive months shall have elapsed without Tenant having defaulted in any
such payment; or

 

    	 	-78-	 

     

    

 

(b)          if
Tenant shall, whether by action or inaction, be in default of any of its obligations under this Lease (other than a default in
the payment of Base Rent, Additional Rent or other charges under this Lease) and such default shall continue and not be remedied
within thirty (30) days after Landlord shall have given to Tenant a notice specifying the same, or, in the case of a default which
cannot with due diligence be cured within a period of thirty (30) days and the continuance of which for the period required for
cure will not subject Landlord to any risk of forfeiture, penalties, or criminal liability or of default under any superior lease
or superior mortgage (or permit the lender not to fund the same), if Tenant shall not (i) within said thirty (30) days period acknowledge
the existence of such default and advise Landlord of Tenant’s intention to take all steps necessary to remedy such default,
(ii) duly commence within said thirty (30) day period, and thereafter continuously and diligently prosecute to completion all steps
necessary to remedy the default and (iii) complete such remedy within a reasonable lime after the date of said notice to Tenant;

 

(c)          then
in any of the above cases, Landlord may give to Tenant a notice of intention to end the Term at the expiration of twenty (20) business
days from the date of the service of such notice of intention, and, upon the expiration of said twenty (20) business days, this
Lease and the Term and estate hereby granted shall terminate with the same effect as if that day was the day herein definitely
fixed for the end of expiration of this Lease. Nothing herein contained shall be construed to limit or preclude recovery by Landlord
against Tenant of any sums or damages to which Landlord may be lawfully entitled by reason of Tenant’s default hereunder.
Suit or suits for the recovery of such damages, or any installment thereof, may be brought by Landlord from time to time at its
election, and nothing contained herein shall be deemed to require Landlord to postpone suit until the date when the Term of would
have expired if it had not been so terminated under the provisions of this Article 33.

 

    	 	-79-	 

     

    

 

(2)         Without
limiting any other rights or remedies of Landlord under this Lease, if Tenant shall fail to pay any installment of Base Rent,
Additional Rent or any other item of rent within twenty (20) business days after any of the same shall be due in the case of Base
Rent or thirty (30) business days after the same shall be due in the case of Additional Rent, with one (1) additional grace period
of up to thirty (30) days each year for delays in payment due to the annual re-registration of this Lease by the Comptroller,
Tenant shall pay to Landlord, as the case may be, as a late charge and as Additional Rent, a sum equal to interest at the Default
Rate on the amount unpaid, computed from the date such payment was due to and including the date of payment. For purposes of this
Lease, the term “Default Rate” shall mean the greater of (a) the statutory rate for judgments which, as of
the date hereof, is currently nine percent (9%) and (b) the annual interest rate publicly announced by Citibank, N.A. (or any
successor thereto) at its principal place of business in New York City as its locally applicable so-called “base rate”
(the “Prime Rate”).

 

    	 	-80-	 

     

    

  

IN
WITNESS WHEREOF, the said parties have caused this Lease to be executed the day and year
first above written.

 

	 	LIVINGSTON
    ACQUISITION, LLC,
	 	Landlord
	 	 
	 	By:  	BLACKACRE
    LIVINGSTON, LLC
	 	 	Managing
    Member
	 	 	 	 	 
	 	 	By:  	BLACKACRE
    CAPITAL GROUP, L.P.
	 	 	 	Manager	 
	 	 	 	 	 
	 	 	 	By:  	BLACKACRE
    CAPITAL MANAGEMENT
	 	 	 	 	CORP.
	 	 	 	 	General
    Partner
	 	 	 	 	 
	 	 	 	By:	/s/
    Howard M. Glatzer

 

	 	THE
    CITY OF NEW YORK,
	 	Tenant
	 	 
	 	By:    	/s/
    Lori Fierstein
	 	 	Deputy Commissioner
	 	 	Department of Citywide Administrative Services
	 	 	 

 

	Approved as to Form:	 
	 	 
	/s/ [ILLEGIBLE]	 
	Acting
    Corporation Counsel	 
	JDC	 

  

    	 	-81-	 

     

    

 

	STATE OF NEW YORK )	 
	                            ) ss.:	 
	COUNTY OF NEW YORK)	 

 

On
this 1st day of July , 1999, before me personally came before me Howard M. Glatzer, Vice President of Blackacre Capital Management
Corp., the General Partner of Blackacre Capital Group, L.P. (“Blackacre”), the sole member of Landlord, that he signed
his name thereto by authority of the resolution of Blackacre dated June 30, 1999.

 

	 	/s/ Robert Silberstein
	 	Notary Public
	 	 
	 	 

 

	STATE OF NEW YORK )	 
	                            ) ss.:	 
	COUNTY OF NEW YORK )	 

 

On
this 30th day of July,1999, before me personally came Lori Fierstein, to me known to be the Deputy Commissioner of
Citywide Administrative Services of the City of New York, the person described in and who executed the foregoing instrument and
(s)he acknowledged to me that (s)he executed the same.

 

	 	/s/ Jewel Nurse-Huntley
	 	Notary Public
	 	 
	 	 

 

    	 	-82-Exhibit 10.42

 

CONSENT AGREEMENT

(GSMS 2013-GCJ12; Loan No. 300460008)

 

THIS CONSENT AGREEMENT
(the “Agreement”) is executed as of December 7, 2015 (the “Effective Date”), by and
among DEUTSCHE BANK TRUST COMPANY AMERICAS, AS TRUSTEE ON BEHALF OF THE REGISTERED HOLDERS OF GS MORTGAGE SECURITIES CORPORATION
II, COMMERCIAL MORTGAGE PASS THROUGH CERTIFICATES, SERIES 2013-GCJ12 (“Lender”), having an address at c/o
Wells Fargo Bank, National Association, Commercial Mortgage Servicing, MAC D 1086, 550 Tryon Street, 14th Floor, Charlotte, North
Carolina 28202, Re: GSMS 2013-GCJ12; Loan No. 300460008 and 250 LIVINGSTON OWNER LLC, a Delaware limited liability company
(“Borrower”), having an address at c/o Clipper Realty L.P., 4611 12th Avenue, Suite 1L, Brooklyn, New York,
New York 11219. All capitalized terms used herein but not defined herein shall have the meaning ascribed to such terms in the
Loan Agreement (as hereinafter defined), as modified by the terms of this Agreement.

 

RECITALS

 

A.           Borrower
is the current owner of fee title to that certain real property (“Land”) and the buildings and improvements
thereon (“Improvements”), commonly known as “250 Livingston Street” located in the Borough
of Brooklyn, County of Kings, State of New York, more particularly described in Exhibit A attached hereto and made a part
hereof (the Land and the Improvements are hereinafter sometimes collectively referred to as the “Project”).

 

B.           Lender
is the current owner and holder of a loan (“Loan”) in the original principal amount of $37,500,000.00 made
pursuant to the terms of that certain Loan Agreement (the “Loan Agreement”) dated as of May 1, 2013, between
Borrower and Citigroup Global Markets Realty Corp. (“Original Lender”), and is evidenced and/or secured by
the Loan Documents described in the Loan Agreement some of which are also described on Exhibit B attached hereto, as all
of the same have been or may be amended, restated, supplemented or otherwise modified from time to time (collectively referred
to as the “Loan Documents”). The Loan is secured in part by the Project, which Project is described in and
encumbered by the “Security Instrument” described on Exhibit B.

 

C.           Borrower
requested Lender consent to the following actions (the “Requested Actions”): (i) the issuance of membership
interests in Berkshire Equity LLC, a Delaware limited liability company (“Berkshire Equity”), the sole economic
member of Borrower, to Clipper Realty L.P., a Delaware limited partnership (“New Indemnitor”), and (ii) the
replacement of David Bistricer (“Current Indemnitor”) by New Indemnitor as the sole managing member of Berkshire
Equity  

 

D.           Certain
of the Requested Actions are prohibited by the terms of the Loan Documents without first obtaining the written consent of Lender
thereto.

 

E.           Lender
has consented to the Requested Actions, pursuant and subject to the terms hereinafter set forth.

 

EXECUTION COPY 

 

     

     

    

  

NOW, THEREFORE,
in consideration of the foregoing premises and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

 

ARTICLE
1

BORROWER ACKNOWLEDGMENTS, WARRANTIES,

 

REPRESENTATIONS
AND COVENANTS

 

As a material inducement
to Lender to enter into this Agreement and to consent to the Requested Actions, Borrower acknowledges, represents and warrants
to, and covenants and agrees with, Lender as follows:

 

1.1           Incorporation
of Recitals. Each of the Recitals set forth above in this Agreement are true and correct and incorporated into this Agreement
by reference.

 

1.2           Authority
of Borrower. Borrower is a duly organized, validly existing limited liability company in good standing under the laws of the
State of Delaware and is qualified to transact business in the State of New York. Berkshire Equity is the sole equity member of
Borrower. David Bistricer is, and following the execution of this Agreement, Berkshire Equity will become, the managing member
of Berkshire Equity. David Bistricer, as the President of Borrower, acting alone without the joinder of any member or manager
of Borrower or any other party, has the power and authority to execute this Agreement on behalf of and to duly bind Borrower under
this Agreement. The execution and delivery of, and performance under, this Agreement and the other documents listed on Exhibit
C attached hereto (collectively, the “Consent Documents”) by Borrower have been duly and properly authorized
pursuant to all requisite limited liability company action and will not (x) violate any provision of any law, rule, regulation,
order, writ, judgment, injunction, decree, determination or award presently in effect having applicability to Borrower or the
articles of organization, certificate of formation, operating agreement, limited liability company agreement or any other organizational
document of Borrower or (y) result in a material breach of or constitute or cause a default under any indenture, agreement, lease
or instrument to which Borrower is a party or by which the Project may be bound or affected.

 

EXECUTION COPY 

 

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1.3           Loan
Documents. The Loan Documents to which Borrower is a party constitute the valid and legally binding obligations of Borrower,
enforceable against Borrower and the Project in accordance with their terms. This Agreement and the execution of other documents
contemplated hereby do not constitute the creation of a new debt or the extinguishment of the debt evidenced by the Loan Documents,
nor will they in any way affect or impair the liens and security interests created by the Loan Documents, which Borrower acknowledges
to be valid and existing liens and security interests in the Project. Borrower agrees that the lien and security interests created
by the Loan Documents continue to be in full force and effect, unaffected and unimpaired by this Agreement or by the Requested
Actions and that said liens and security interests shall so continue in their perfection and priority until the debt secured by
the Loan Documents is fully discharged. As of the Effective Date, Borrower has no defenses, setoffs, claims, counterclaims or
rights of defense, rights of setoff or counterclaim, whether legal, equitable or otherwise, to the obligations evidenced by or
set forth in the Loan Agreement, the Security Instrument, the Note (as described on Exhibit B), or any of the other Loan
Documents or causes of action of any kind or nature whatsoever against Lender, and Wells Fargo Bank, National Association (“Master
Servicer”) and Rialto Capital Advisors, LLC (“Rialto”) and any and all other parties
appointed and/or serving as servicers of the Loan (collectively, “Servicer”), all subsidiaries, parents and
affiliates of Lender and Servicer and each of the foregoing parties’ predecessors in interest, and each and all of their
respective past, present and future partners, members, certificateholders, officers, directors, employees, agents, contractors,
representatives, participants and heirs and each and all of the successors and assigns of each of the foregoing (collectively,
“Lender Parties”) with respect to (i) the Loan, (ii) the Note, (iii) the Security Instrument, (iv) any of the
other Loan Documents, (v) the indebtedness secured by the Loan Documents (“Indebtedness”), and (vi) any other
documents or instruments now or previously evidencing, securing or in any way relating to the Loan. To the extent Borrower would
be deemed to have any such defenses, affirmative defenses, setoffs, claims, counterclaims, crossclaims or causes of action as
of the Effective Date, Borrower knowingly waives and relinquishes them.

 

1.4           Affirmation
of Obligations of Borrower. Borrower hereby affirms the existence and the validity of its obligations and the other provisions
in the Security Instrument, the Loan Agreement, the Note and the other Loan Documents in accordance with their respective terms
and conditions. Borrower further confirms that nothing in this Agreement nor the Requested Actions shall release, waive, lessen,
compromise or otherwise affect its obligations under, and Borrower agrees to continue to abide by and be bound by all of the terms
of the Loan Documents to which it is a party, including but not limited to, the representations, warranties, covenants, assurances
and indemnifications therein. Borrower further agrees to pay, perform, and discharge each and every obligation of payment and
performance under, pursuant to and as set forth in the Security Instrument, the Loan Agreement, the Note and the other Loan Documents
at the time, in the manner and otherwise in all respects as therein provided.

 

1.5           Transfer
of Interests. Except for the Requested Actions, no holder of a direct or indirect beneficial ownership interest in Borrower
has assigned, transferred, pledged or otherwise disposed of all or any part of its beneficial ownership or economic interest in
Borrower in a manner that would violate the requirements of Section 6.2 or any other applicable provision of the Loan Agreement
or any of the other Loan Documents.

 

1.6           No
Event of Default or Trigger Period. To the best of knowledge of Borrower, no event, fact or circumstance has occurred or failed
to occur which constitutes, or with the lapse or passage of time, giving of notice or both, would constitute an Event of Default
or a Trigger Period under the Loan Documents.

 

1.7           Condemnation.
There are no pending or, to the best of knowledge of Borrower, threatened condemnation proceedings or annexation proceedings affecting
the Project, nor any agreements to convey any portion of the Project, or any rights thereto to any person or entity, including,
without limitation, any government or governmental agency.

 

EXECUTION COPY 

 

    	 	3	 

     

    

 

1.8           Liens. 
Borrower has not received written notice, and has no actual knowledge of, any lien (statutory or otherwise), encumbrance, easement,
restrictive covenant or any other encumbrance (each a “Lien”) encumbering all or any portion of the Project,
other than unpaid taxes or assessments that are not yet due and payable, the Permitted Encumbrances and any matters reflected
on any title commitment, title report or title endorsement delivered to and accepted in writing by Lender in connection with this
Agreement. Lender’s execution of this Agreement shall not be deemed Lender’s acceptance in writing of any Lien not
shown in Lender’s title insurance policy as of the date of this Agreement. Borrower has also not received written notice
of a Lien or notice of intent to file a Lien against all or any portion of the Project that is prohibited under the Loan
Documents.  Borrower has not filed or caused to be filed or conducted any acts or omitted to perform any obligations which
would cause others to have the right to file a Lien against all or any portion of the Project. Borrower and Current Indemnitor,
jointly and severally, agree to reimburse, indemnify and hold Lender Parties harmless from and against any and all liabilities,
judgments, costs, claims, damages, penalties, expenses, losses or charges (including, but not limited to, all legal fees and court
costs) (collectively, “Indemnification Costs”)” which may now or in the future be undertaken, suffered,
paid, awarded, assessed or otherwise incurred as a result of or arising out of any breach of any of the representations or warranties
made in this Section 1.8.

 

1.9           Financial
Statements. The financial information regarding Borrower, New Indemnitor and the Project supplied by, or on behalf of, Borrower
in connection with Borrower’s request for Lender consent to the Requested Actions (collectively, the “Financial
Information”) were, in all material respects, true and correct on the dates of such items, and since such dates, no
material adverse change in the financial condition of Borrower or the Project has occurred, and there is no pending or, to the
best knowledge of Borrower, threatened litigation or proceedings of any kind which, if determined adversely to Borrower, New Indemnitor
or the Project would reasonably likely to have a Material Adverse Effect on Borrower, New Indemnitor or the Project. Borrower
acknowledges that the Financial Information has been provided to Lender to induce Lender to consent to the Requested Actions and
to enter into this Agreement and any of the other Consent Documents to which it is a party and is being relied upon by Lender
for such purposes.

 

1.10         Organization
of Borrower. Neither Borrower nor any SPE Component Entity has modified any of its organizational documents since true and
correct copies were delivered to Lender at Loan origination. The organizational chart attached hereto as Schedule 3.31 is
a true and correct representation of Borrower’s ownership structure immediately following the consummation of the Requested
Actions.

 

1.11         Legal
Proceedings. There is no action, proceeding or investigation pending or, to the best knowledge of Borrower, threatened in
writing which questions, directly or indirectly, the validity or enforceability of this Agreement, any of the other Consent Documents
or any of the Loan Documents applicable to Borrower, or any action taken or to be taken pursuant hereto or thereto, in each case,
which may have a Material Adverse Effect.

 

EXECUTION COPY 

 

    	 	4	 

     

    

 

1.12         Acknowledgement
of Indebtedness. Borrower confirms that, and by its execution hereof, Lender confirms that, to its actual knowledge: (a) as
of October 19, 2015, 2015, the outstanding principal balance of the Note was $35,913,625.52, and (b) and the following escrow
and reserve balances are being held by Lender: (i) a tax escrow balance of $408,107.88; (ii) an insurance escrow balance of $261,705.61,
(iii) a required violation removal reserve balance of $33,193.22, (iv) a leasing reserve balance of $643,037.73, (v) an office
replacement reserve balance of $128,607.82, (vi) a residential replacement reserve balance of $16,326.25, and (vii) an immediate
repair reserve balance of $41,336.87. In the event of any error in, or omission from, the foregoing, Lender shall not be prejudiced,
limited, or estopped, in any way in its right to charge, collect and receive any and all monies lawfully due Lender under the
Loan Documents. Borrower acknowledges and agrees that the Loan, as evidenced and secured by the Note and the other Loan Documents,
is a valid and existing indebtedness payable by Borrower to Lender.

 

1.13         Reserved.

 

1.14         Leases.
The NYC EPA Lease and the NYC HRA Lease (collectively, the “Leases”) are the only Major Leases affecting the
Project and are currently in full force and effect. Borrower has not been notified of any landlord default under any of the Leases;
there are no leasing broker’s or finder’s commissions of any kind due or to become due with respect to the Leases
or the Project; Borrower has not received any prepaid rents or given any concessions for free or reduced rent under the Leases
and will not accept any prepaid rents for more than one month in advance. The tenant under the Leases is currently in possession
of and is operating businesses from its leased premises. 

 

1.15         Project
Management. There is no Management Agreement affecting the Project..

 

1.16         
Independent Director. There will be no change in the Independent Directors of Borrower in connection with the Requested
Actions. Michelle A. Dreyer is and shall continue to be the Independent Director of Borrower.

 

1.17         Bankruptcy.
None of Borrower or, to the best of knowledge of Borrower or New Indemnitor or any managers, members, affiliates or other entities
which may be owned or controlled directly or indirectly by Borrower or New Indemnitor (collectively, the “Borrower Parties”),
presently has any intent (a) to file any voluntary petition under any Chapter of the Bankruptcy Code, Title 11, U.S.C.A. (“Bankruptcy
Code”), or in any manner to seek any proceeding for relief, protection, reorganization, liquidation, dissolution or
similar relief for debtors (“Debtor Proceeding”) under any local, state, federal or other insolvency law or
laws providing relief for debtors, (b) directly or indirectly to intentionally cause any involuntary petition under any Chapter
of the Bankruptcy Code to be filed against Borrower, or (c) directly or indirectly to intentionally cause the Project or any portion
or any interest of Borrower in the Project to become part of any bankrupt estate or the subject of any Debtor Proceeding.

 

1.18         Single
Purpose Entity Status. The Requested Actions shall not result in any changes to the single purpose nature and bankruptcy remoteness
of Borrower. Borrower has been and is in compliance in all material respects with the covenants set forth in Section 5.1 of the
Loan Agreement. Borrower’s organizational documents have not been modified since the origination of the Loan, nor were they
modified in connection with the Requested Actions other than to reflect the change in the ownership as described in the Requested
Actions.

 

EXECUTION COPY 

 

    	 	5	 

     

    

 

1.19         Non-Consolidation
Opinion. Borrower has conducted its business so that all of the assumptions made with respect to Borrower set forth in the
non-consolidation opinion delivered in connection with the origination of the Loan (the “Original Non-Consolidation Opinion”)
and in that certain bring-down non-consolidation opinion letter dated as of the Effective Date by Backenroth, Frankel & Krinsky,
LLP (the “Bring Down Opinion”), in connection with the Requested Actions (the Original Non-Consolidation Opinion,
as updated by the Bring Down Opinion, the “New Non-Consolidation Opinion”) are true and correct in all material
respects. Further, all of the factual assumptions in the New Non-Consolidation Opinion are true and correct in all material respects
relating to Borrower or any of the other Borrower Parties.

 

1.20         No
Modification. Except as expressly provided herein, all of the terms, covenants and conditions of the Loan Documents shall
continue in full force and effect unmodified notwithstanding the consummation of the Requested Actions.

 

1.21         Assets
of Borrower. The only assets of Borrower are the Project, the remainder of the Property, the Leases and cash or cash
equivalents and incidental personal property of the Project necessary for the operation of the Project.

 

1.22         Consents.
Borrower has obtained, and provided Lender true and correct copies of, all consents to the Requested Actions required to be obtained
by Borrower under any applicable agreement, instrument, document, law, rule, or regulation, or, no consents to the Requested Actions
are required to be obtained by Borrower under any applicable agreement, instrument, document, law, rule, or regulation, including,
but not limited to, the consent of the City of New York under the NYC EPA Lease or the NYC HRA Lease.

 

1.23         
Inspections. None of Borrower Parties nor any other person on behalf of Borrower or any of Borrower Parties has obtained
any written environmental assessment, property inspection or condition reports for all or any portion of the Project in connection
with the Requested Actions.

 

1.24         OFAC
List. Borrower Parties will not knowingly permit the transfer of any interests in Borrower Parties to any person or entity
(or any beneficial owner of such entity) who is listed on the specially Designated Nationals and Blocked Persons List maintained
by the Office of Foreign Asset Control, Department of the Treasury pursuant to Executive Order No. 13224, 66 Fed. Reg. 49079 (Sept.
25, 2001) and/or any other list of terrorists or terrorist organizations maintained pursuant to any of the rules and regulations
of Office of Foreign Asset Control, Department of the Treasury or pursuant to any other applicable Executive Orders (such lists
are collectively referred to as the “OFAC Lists”). Borrower will not knowingly enter into a lease with any
party who is listed on the OFAC Lists. Borrower shall promptly notify Lender if Borrower has knowledge that any of Borrower Parties
is listed on the OFAC Lists or (A) is indicted on or (B) arraigned and held over on charges involving money laundering or predicate
crimes to money laundering. Borrower shall promptly notify Lender if Borrower knows that any tenant is listed on the OFAC Lists
or (A) is convicted on, (B) pleads nolo contendere to, (C) is indicted on or (D) is arraigned and held over on charges involving
money laundering or predicate crimes to money laundering. Borrower further represents and warrants to Lender on behalf of itself
and the other Borrower Parties that none of the Borrower Parties is currently listed on the OFAC Lists.

 

EXECUTION COPY 

 

    	 	6	 

     

    

 

1.25         Release
and Covenant Not To Sue. Borrower, on behalf of itself and each of the other Borrower Parties, Current Indemnitor, and each
of their respective successors and assigns, remise, release, acquit, satisfy and forever discharge Lender Parties from any and
all manner of debts, accountings, bonds, warranties, representations, covenants, promises, contracts, controversies, agreements,
liabilities, obligations, expenses, damages, judgments, executions, actions, inactions, claims, demands and causes of action of
any nature whatsoever, at law or in equity, known or unknown, either now accrued or subsequently maturing, which any of Borrower
Parties may now have or hereafter can, shall or may have by reason of any matter, cause or thing, from the beginning of the world
to and including the date of this Agreement, arising out of or relating to (a) the Loan, (b) the Security Instrument, (c) the
Loan Agreement, (c) the Note, (d) any of the other Loan Documents, (e) the Indebtedness, or (f) any other documents or instruments
now or previously evidencing, securing or in any way relating to the Loan. Borrower, on behalf of itself and each of the other
Borrower Parties, and each of their respective successors and assigns, covenant and agree never to institute or
cause to be instituted or continue prosecution of any suit or other form of action or proceeding of any kind or nature whatsoever
against any of Lender Parties by reason of or in connection with any of the foregoing matters, claims or causes of action, but
excluding any claims or causes of action resulting from or in connection with this Agreement or the other Consent Documents.

 

1.26         Information. 
All information provided to Servicer by any of Borrower Parties and/or Current Indemnitor, or any of their respective employees,
officers, directors, partners, members, managers or representatives, in connection with or relating to (a) the Requested Actions,
(b) this Agreement or the transactions contemplated hereby or (c) the Project, contains no untrue statement of material fact and
does not omit a material fact necessary in order to make such information not misleading, and the provision of any such information
by Lender or any Servicer,  including, but not limited to, Master Servicer or Rialto, to any rating agency is expressly
consented to by Borrower Parties and will not infringe upon or violate any intellectual property rights of any party.  Borrower
Parties, by their execution of this Agreement or the Joinder attached hereto, jointly and severally, agree to reimburse, indemnify
and hold Lender Parties harmless from and against any and all Indemnification Costs, which may now or in the future be undertaken,
suffered, paid, awarded, assessed or otherwise incurred as a result of or arising out of any breach or inaccuracy in any material
respect of the foregoing representations and warranties or any fraudulent or tortious conduct of any Borrower Parties in connection
with the Requested Actions, this Agreement or the transactions contemplated hereby, including the misrepresentation of financial
data presented to Lender in connection herewith.

 

1.27         Insurance.
There have been no changes to the insurance coverages, insureds, loss payees, additional insureds, certificateholders, deductibles
or carriers since the last date such insurance was approved by Lender, other than the addition of Clipper Realty, Inc. as an additional
insured.

 

EXECUTION COPY 

 

    	 	7	 

     

    

 

1.28       Immediate
Repairs. Borrower has timely and fully completed the Immediate Repairs described in Section 8.1 of and Schedule 8.1 to the
Loan Agreement, and has provided evidence of such completion to Lender.

 

1.29       Required
Violation Removal Work. Borrower has caused the removal of each of the violations set forth in Schedule 4.2(a) to the Loan
Agreement with respect to the Property and has provided evidence of such removal to Lender.

 

1.30       Reaffirmations.
Borrower reaffirms, affirms and confirms the truth and accuracy of all representations and warranties set forth in the Loan Documents
as if made on the Effective Date, in all material respects, except for such representations and warranties for matters which by
their nature can no longer be true and correct as a result of the passage of time and those matters no longer true and correct
as a result of actions or occurrences not expressly prohibited by the Loan Documents, and further agrees to continue to abide
by all of the covenants set forth in the Loan Documents.

 

ARTICLE
2

ADDITIONAL PROVISIONS

 

2.1         Modification
to Loan Documents. From and after the Effective Date, provided Borrower continues to own the Project and Sponsor directly
or indirectly owns more than 50% of and controls Borrower, the Loan Documents shall be modified as follows.

 

(a)          Loan
Agreement

 

(i)          The
definition of the terms “Guarantor,” in Section 1.1 of the Loan Agreement is hereby revised to read as follows:

 

““Guarantor”
shall mean collectively and jointly and severally David Bistricer, an individual, and Clipper Realty, L.P., a Delaware limited
partnership.”

 

(ii)         The
organizational chart attached as Schedule 3.31 to the Loan Agreement is hereby replaced with the organizational chart attached
hereto as Schedule 3.31

 

(iii)        Section
6.3 of the Loan Agreement is hereby amended to read as follows:

 

EXECUTION COPY 

 

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“Permitted
Equity Transfers. Notwithstanding the restrictions contained in this Article 6, the following equity transfers shall be permitted
without Lender’s consent: (a) a transfer (but not a pledge) by devise or descent or by operation of law upon the
death of a Restricted Party or any member, partner or shareholder of a Restricted Party (provided that Lender shall receive written
notice of such transfer within thirty (30) days following such transfer), (b) the transfer (but not the pledge), in one
or a series of transactions, of the stock, partnership interests or membership interests (as the case may be) in a Restricted
Party (provided that Lender shall receive not less than thirty (30) days prior written notice of such transfer), (c) the
sale, transfer or issuance of limited partnership interests in Clipper Realty L.P. (provided, that, the foregoing provisions of
this clause (c) shall not be deemed to waive, qualify or otherwise limit Borrower’s obligation to comply (or to cause the
compliance with) the other covenants set forth herein and in the other Loan Documents (including, without limitation, the covenants
contained herein relating to ERISA matters) and provided that Lender shall receive written notice of any transfer resulting in
a transferee acquiring in one or a series of transfers 20% or more of the limited partnership interests in Clipper Realty L.P.
within thirty (30) days following such transfer), (d) the sale, transfer or issuance of shares of common stock of Clipper
Realty Inc. (provided, that, the foregoing provisions of this clause (d) shall not be deemed to waive, qualify or otherwise limit
Borrower’s obligation to comply (or to cause the compliance with) the other covenants set forth herein and in the other
Loan Documents (including, without limitation, the covenants contained herein relating to ERISA matters) and provided that Lender
shall receive written notice of any transfer resulting in a transferee acquiring in one or a series of transfers 20% or more of
the limited partnership interests in Clipper Realty Inc. within thirty (30) days following such transfer); or (e) the sale,
transfer or issuance of shares of common stock in any Restricted Party that is a publicly traded entity, provided the shares of
common stock of such Restricted Party are listed on the New York Stock Exchange or another nationally recognized stock exchange
(provided, that, the foregoing provisions of this clause (e) shall not be deemed to waive, qualify or otherwise limit Borrower’s
obligation to comply (or to cause the compliance with) the other covenants set forth herein and in the other Loan Documents (including,
without limitation, the covenants contained herein relating to ERISA matters)); provided, further, that with respect to the transfers
listed in clauses (a), (b), (c) and/or (d) above, (A) Clipper Realty Inc. shall continue to be the general partner of Clipper
Realty L.P., (B) no such transfers shall result in a change in Control of Clipper Realty Inc., Clipper Realty L.P., Sponsor or
Affiliated Manager; (C) after giving effect to such transfers, Sponsor shall (I) own at least a 51% direct or indirect equity
ownership interest in each of Borrower and any SPE Component Entity; (II) Control Borrower and any SPE Component Entity and (III)
control the day-to-day operation of the Property; (D) after giving effect to such transfers, Clipper Realty Inc. shall own at
least a 16.5% direct or indirect equity ownership interest in Borrower; (E) after giving effect to such transfers, and in the
event Borrower has entered into a Management Agreement, the Property shall continue to be managed by Manager or a New Manager
approved in accordance with the applicable terms and conditions hereof; (F) in the case of the transfer of any direct equity ownership
interests in Borrower or in any SPE Component Entity, such transfers shall be conditioned upon continued compliance with the relevant
provisions of Article 5 hereof; (G) in the case of (1) the transfer of the management of the Property to a new Affiliated Manager
in accordance with the applicable terms and conditions hereof, or (2) the transfer of any equity ownership interests (I) directly
in Borrower or in any SPE Component Entity, or (II) in any Restricted Party whose sole asset is a direct or indirect equity ownership
interest in Borrower or in any SPE Component Entity, such transfers shall be conditioned upon delivery to Lender of a New Non-Consolidation
Opinion addressing such transfer; and (H) such transfers shall be conditioned upon Borrower’s ability to, after giving effect
to the equity transfer in question (I) remake the representations contained herein relating to ERISA matters (and, upon Lender’s
request, Borrower shall deliver to Lender an Officer’s Certificate containing such updated representations effective as
of the date of the consummation of the applicable equity transfer) and (II) continue to comply with the covenants contained herein
relating to ERISA matters. Upon request from Lender, Borrower shall promptly provide Lender a revised version of the organizational
chart delivered to Lender in connection with the Loan reflecting any equity transfer consummated in accordance with this Section
6.3.”.

 

EXECUTION COPY 

 

    	 	9	 

     

    

 

2.2           Representations
and Warranties. No representation or warranty of Borrower Parties made in this Agreement contains any untrue statement of
material fact or intentionally omits to state a material fact necessary in order to make such representations and warranties not
misleading in light of the circumstances under which they are made. Any breach by Borrower or  by any of the other Borrower
Parties of any of the representations, warranties or covenants set forth herein or in the Joinder hereto, after expiration of
all applicable notice and cure periods, shall constitute an Event of Default under the Security Instrument, the Loan Agreement,
the Note and the other Loan Documents.

 

2.3           Consent
of Lender. Subject to the terms of this Agreement, Lender hereby consents to the Requested Actions. Each of Borrower Parties
agrees that neither this Agreement nor Lender’s consent to the Requested Actions shall be deemed Lender’s consent
or a waiver of Lender’s right to consent to any other action requiring Lender consent under the Loan Documents. Failure
to obtain Lender’s consent prior to taking any such actions requiring Lender consent under the Loan Documents shall constitute
a default under the Loan Documents. Neither this Agreement nor Lender’s consent to the Requested Actions shall constitute
a modification of any of the terms or conditions of the Loan Documents, except as expressly set forth herein.

 

EXECUTION COPY 

 

    	 	10	 

     

    

 

2.4           Payment
of Fees and Expenses. Simultaneously with or prior to the execution of this Agreement, Borrower shall pay to or shall have
paid to Lender (a) a consent fee in the amount of $359,136.26, which is 1.0% of the outstanding principal balance of the Loan
as of the Effective Date, and (b) an administration and processing fee equal to $150.00, each of which are fees for new consideration
and are not interest charged in connection with the Loan. Borrower shall also pay at the time of execution of this Agreement the
(i) legal fees and expenses of Lender’s counsel, Bilzin Sumberg Baena Price & Axelrod LLP, in connection with the preparation
of this Agreement and the transactions contemplated in this Agreement and (ii) Rating Agency review fees and costs, if any, incurred
by Lender and the legal fees and costs of any such Rating Agency’s counsel, if any.

 

2.5           Further
Assurances. Each party hereto shall execute and deliver to the other party such agreements, instruments, documents, financing
statements and other writings as may be reasonably requested from time to time by such other party to consummate the transactions
contemplated by this Agreement

 

2.6           References
to Loan Documents. All references to the term “Loan Documents” herein, including in the Joinders attached
hereto, in the Loan Agreement, the Note, the Security Instrument and the other Loan Documents shall hereinafter mean and refer
to: (i) the Loan Documents described therein, as may have been modified by the terms of this Agreement; (ii) this Agreement, including
any Joinders attached hereto; and (iii) the Certificate of 250 Livingston Owner LLC dated as of August 3, 2015, issued to Lender
in connection with the Clipper REIT Investment described therein.

 

ARTICLE
3

MISCELLANEOUS PROVISIONS

 

3.1           Relationship
with Loan Documents. To the extent that this Agreement is inconsistent with the Loan Documents, this Agreement will control
and the Loan Documents will be deemed to be modified hereby. Except as modified hereby, the Loan Documents shall remain unchanged
and in full force and effect.

 

3.2           No
Limitation of Remedies. No right, power or remedy conferred upon or reserved to or by Lender in this Agreement is intended
to be exclusive of any other right, power or remedy conferred upon or reserved to or by Lender under this Agreement, the Loan
Documents or at law, but each and every remedy shall be cumulative and concurrent, and shall be in addition to each and every
other right, power and remedy given under this Agreement, the Loan Documents or now or subsequently existing at law.

 

EXECUTION COPY 

 

    	 	11	 

     

    

 

3.3           No
Waivers. Except as otherwise expressly set forth in this Agreement, nothing contained in this Agreement shall constitute a
waiver of any rights or remedies of any party under the Loan Documents or at law. No delay or failure on the part of any party
hereto in the exercise of any right or remedy under this Agreement shall operate as a waiver, and no single or partial exercise
of any right or remedy shall preclude other or further exercise thereof or the exercise of any other right or remedy. No action
or forbearance by any party hereto contrary to the provisions of this Agreement shall be construed to constitute a waiver of any
of the express provisions. Any party hereto may in writing expressly waive any of such party’s rights under this Agreement
without invalidating this Agreement.

 

3.4           Successors
or Assigns. Whenever any party is named or referred to in this Agreement, the heirs, executors, legal representatives, successors,
successors-in-title and assigns of such party shall be included. All covenants and agreements in this Agreement shall bind and
inure to the benefit of the heirs, executors, legal representatives, successors, successors-in-title and assigns of the parties,
whether so expressed or not.

 

3.5           Construction
of Agreement. Each party hereto acknowledges that it has participated in the negotiation of this Agreement and no provision
shall be construed against or interpreted to the disadvantage of any party hereto by any court or other governmental or judicial
authority by reason of such party having or being deemed to have structured, dictated or drafted such provision. Each party has
at all times had access to an attorney in the negotiation of the terms of and in the preparation and execution of this Agreement.
Each party has had the opportunity to review and analyze this Agreement for a sufficient period of time prior to execution and
delivery. No representations or warranties have been made by or on behalf of Lender, or relied upon by Borrower, pertaining to
the subject matter of this Agreement, other than those set forth in this Agreement. No representations or warranties have been
made by or on behalf of Borrower, or relied upon by Lender, pertaining to the subject matter of this Agreement, other than those
set forth in this Agreement. All oral statements, representations and warranties, if any, are superseded and merged into this
Agreement, which represents the final agreement of the parties with respect to the subject matter herein. All of the terms of
this Agreement were negotiated at arm’s length, and this Agreement was prepared and executed without fraud, duress, undue
influence or coercion of any kind exerted by any of the parties upon the others. The execution and delivery of this Agreement
is the free and voluntary act of Borrower and Lender.

 

3.6           Invalid
Provision to Affect No Others. If, from any circumstances whatsoever, fulfillment of any provision of this Agreement or any
related transaction at the time performance of such provision shall be due, shall involve transcending the limit of validity presently
prescribed by any applicable usury statute or any other applicable law, with regard to obligations of like character and amount,
then ipso facto, the obligation to be fulfilled shall be reduced to the limit of such validity. If any clause
or provision operates or would prospectively operate to invalidate this Agreement, in whole or in part, then such clause or provision
only shall be deemed deleted, as though not contained, and the remainder of this Agreement shall remain operative and in full
force and effect.

 

EXECUTION COPY 

 

    	 	12	 

     

    

 

3.7           Notices.
The Loan Documents are hereby modified to provide that any and all notices, elections, approvals, consents, demands, requests
and responses (“Communications”) permitted or required to be given under this Agreement and the Loan Documents
shall be given in the manner provided in the Loan Agreement, provided that any Communications, if given to Lender, must be addressed
as follows, subject to change as provided above:

 

Deutsche Bank Trust Company Americas, as Trustee

c/o Wells Fargo Bank, National Association

Commercial Mortgage Servicing, MAC D 1086

550 Tryon Street, 14th Floor

Charlotte, North Carolina 28202

Attn: GSMS 2013-GCJ12, Asset Manager

Re: GSMS 2013-GCJ12; Loan No.: 300460008

 

With a copy to:

 

Rialto Capital Advisors, LLC

790 NW 107th Avenue, Suite 400

Miami, Florida 33172

Attn: Niral Shah, Director

Facsimile: (305) 485-2724

Re: GSMS 2013-GCJ12; Loan No.: 300460008

 

and, if given to Borrower, must be addressed
as follows, notwithstanding any other address set forth in the Loan Documents to the contrary, subject to change as provided in
the Loan Documents:

 

250 Livingston Owner LLC

c/o Berkshire Capital

4611 12th Avenue, Apt. 1L

Brooklyn, New York 11219

Attention: David Bistricer

Facsimile: (718) 435-3848

Telephone: (718) 438-2804

Email: DBistricer@clipperequity.com

 

With a copy to:

 

Sullivan & CromwellLLP

125 Broad Street

New York, New York 10004

Attention: Robert W. Downes

 

Facsimile: (212) 291-9043

Telephone: (212) 558-4312

 

Email: downesr@sullcrom.com

 

EXECUTION COPY 

 

    	 	13	 

     

    

 

3.8           Governing
Law. This Agreement shall be interpreted, construed and enforced in accordance with the laws of the State in which the Project
is located.

 

3.9           Headings;
Exhibits. The headings of the articles, sections and subsections of this Agreement are for the convenience of reference only,
are not to be considered a part of this Agreement and shall not be used to construe, limit or otherwise affect this Agreement.

 

3.10         Modifications.
The terms of this Agreement may not be changed, modified, waived, discharged or terminated orally, but only by an instrument or
instruments in writing, signed by the party against whom the enforcement of the change, modification, waiver, discharge or termination
is asserted.

 

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

 

3.12         Current
Indemnitor Joinder. It shall be a condition to Lender’s agreement to consent to the Requested Actions that Current Indemnitor
execute and deliver to Lender, simultaneously with Borrower Parties’ execution hereof, the Joinder by and Agreement of Current
Indemnitor attached hereto.

 

3.13         New
Indemnitor Joinder. It shall be a condition to Lender’s agreement to consent to the Requested Actions that New Indemnitor
execute and deliver to Lender, simultaneously with Borrower Parties’ execution hereof, the Joinder by and Agreement of New
Indemnitor attached hereto.

 

3.14         WAIVER
OF JURY TRIAL. BORROWER AND LENDER, BY ACCEPTANCE OF THIS AGREEMENT, HEREBY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER IN CONTRACT. TORT OR OTHERWISE, RELATING DIRECTLY
OR INDIRECTLY TO THE LOAN, THIS AGREEMENT, THE LOAN AGREEMENT, THE NOTE, THE SECURITY INSTRUMENT OR THE OTHER LOAN DOCUMENTS OR
ANY ACTS OR OMISSIONS OF LENDER OR BORROWER.

 

[NO FURTHER TEXT APPEARS ON THIS PAGE;
SIGNATURE PAGES FOLLOW]

 

EXECUTION COPY 

 

    	 	14	 

     

    

 

The parties have executed and delivered this Agreement as of
the day and year first above written.

 

	Witnesses:	 	LENDER:
	 	 	 
	 	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, AS TRUSTEE ON BEHALF OF THE REGISTERED HOLDERS OF
    GS MORTGAGE SECURITIES CORPORATION II, COMMERCIAL MORTGAGE PASS THROUGH CERTIFICATES, SERIES 2013-GCJ12

 

	 	 	By:	Rialto Capital Advisors, LLC, a Delaware limited liability company, as attorney-in-fact
	 	 	 	 	 
	/s/ Kim Schmuggerow	 	 	By:	/s/ Adam Singer
	Print Name:	Kim Schmuggerow	 	 	 	Adam Singer
	 	 	 	 	 	 

 

	/s/ Illegible	 
	Print Name:	Illegible	 

 

	STATE OF FLORIDA	)
	 	) SS:
	COUNTY OF MIAMI-DADE	)

 

The foregoing instrument
was acknowledged before me this 30th day of October, 2015, by Adam Singer, as Managing Director of Rialto Capital Advisors, LLC,
a Delaware limited liability company, on behalf of the said limited liability company as attorney-in-fact for DEUTSCHE
BANK TRUST COMPANY AMERICAS, AS TRUSTEE ON BEHALF OF THE REGISTERED HOLDERS OF GS MORTGAGE SECURITIES CORPORATION II, COMMERCIAL
MORTGAGE PASS THROUGH CERTIFICATES, SERIES 2013-GCJ12, on behalf of the Trust. He P
is personally known to me or _____ has produced a driver’s license as identification.

 

	 	Aileen Y. Perez

                    NOTARY PUBLIC

                    STATE OF FLORIDA

                    Comm# FF215384

                    Expires 3/30/2019
	/s/
    Aileen Perez
	Notary Public, State of Florida
	Print Name:	Aileen
    Perez
	My Commission Expires:     3/30/19   
	 
	 	 	 	 

[AFFIX NOTARY STAMP ABOVE]

 

EXECUTION COPY 

 

    	 	15	 

     

    

 

	Witnesses:	BORROWER:
	 	 
	 	250 LIVINGSTON OWNER LLC,
	 	a Delaware limited liability company

 

	/s/ Lawrence Kreider	 	By:	/s/ David Bistricer
	Print Name:	Lawrence Kreider	 	Name:	David Bistricer
	 	 	 	Title:	President
	/s/ Shoshana Yavneh	 	 	 
	Print Name:	Shoshana Yavneh	 	 	 

 

State of New York )

County of _______ ) ss.:

 

On the 2 day of Dec
in the year 2015 before me, the undersigned, personally appeared DAVID BISTRICER, personally known to me or proved to me on the
basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged
to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her their signature(s) on the instrument,
the individual(s), or the person upon behalf of which the individual(s) acted, executed the instrument.

 

	/s/ Chaya Sara Beer	 
	Signature and Office of individual	 
	taking acknowledgment	 

 

CHAYA SARA BEER

Notary Public, State
of New York

No. 24-4960111

Qualified in Kings
County

Commission Expires
Dec. 18, 2018

 

EXECUTION COPY 

 

    	 	16	 

     

    

 

EXHIBIT A

 

LEGAL DESCRIPTION

 

EXECUTION COPY 

 

     

     

    

 

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

 

BEGINNING
at a point on the southerly side of Livingston Street, which point is
142 feet 5 inches west of the corner formed by the southerly side of Livingston Street with the westerly side of Bond Street, 65
feet wide, as laid out on map entitled, “Map of Property in the 6th
Ward of the City of Brooklyn belonging to the heirs of Johannes Debevoise, deceased, Brooklyn, April 1836,
surveyed
by Isaac T. Ludlam,
C.S.”, and filed in the Kings County Register’s Office as Map No. 906;

 

RUNNING
THENCE southerly parallel with Bond Street, 71 feet 3 inches;

 

THENCE
easterly parallel with Schermerhorn Street, 49 feet 2 inches;

 

THENCE
southerly at right angles to Schermerhorn Street, 95 feet 3 inches;

 

THENCE
easterly parallel with Schermerhorn Street, 0 feet 5 inches;

 

THENCE
southerly at right angles to Schermerhorn Street, 5 feet to the
northerly side of Schermerhorn
Street at a point which is distant 92 feet 6 inches from the corner formed by the northerly side of Schermerhorn Street with the
westerly side of Bond Street, as laid out as aforesaid;

 

THENCE
westerly along the northerly side of Schermerhorn Street, 197 feel 10 inches to a point which is distant 290 feel 4 inches
from the corner formed by the intersection of the northerly side of Schermerhorn Street with the westerly side of Bond Street,
as laid out as aforesaid;

 

THENCE
northerly parallel with Bond Street 100 feet 9 inches;

 

THENCE
easterly parallel with Schermerhorn Street 8 feet 4 inches;

 

THENCE
northerly parallel with Bond Street 70 feet 9 inches to a point in the southerly side of Livingston Street, which point is
distant 282 feet from the
corner formed by the intersection of the southerly side of Livingston Street with the westerly side of Bond Street, as laid out
as aforesaid; and

 

THENCE
easterly along the southerly side of Livingston
Street, 139 feet 7 inches to the point or place of BEGINNING.

 

EXECUTION
COPY

 

     

     

    

 

NOTE:
Being District, Section, Block(s) I65, Lot(s) 22, Tax Map of the Borough
of Brooklyn, County of Kings.

 

NOTE:
Lot and Block shown for informational purposes only.

 

EXECUTION COPY

 

     

     

    

 

EXHIBIT B

 

LOAN DOCUMENTS

 

1.          GAP
Promissory Note dated May 1, 2013, in the original principal amount of $2,990,710.30 executed by Borrower in favor of Original
Lender, endorsed to the order of Lender (the “GAP Note”).

 

2.          Consolidated,
Amended and Restated Promissory Note dated May 1, 2013, in the principal amount of $37,500,000, executed by Borrower
in favor of Original Lender, endorsed to the order of Lender (together with the GAP Note, the “Note”).

 

3.          GAP
Mortgage and Security Agreement dated as of May 1, 2013, executed by Borrower in favor of Original Lender and recorded June 26,
2013 under CRFN 2013 000252301 with the King’s County Clerk/Register’s Office (the “Records”),
as assigned to Lender (the “GAP Mortgage”)

 

4.          Consolidated
Amended and Restated Mortgage and Security Agreement dated as of May 1, 2013, executed by Borrower in favor of Original Lender
and recorded June 26, 2013 under CRFN 2013 000252302 with the Records, as assigned to Lender (together with the GAP Mortgage,
the “Security Instrument”).

 

5.          Loan
Agreement dated as of May 1, 2013, between Borrower and Original Lender, as assigned to Lender (the “Loan Agreement”).

 

6.          Assignment
of Leases and Rents dated as of May 1, 2013, executed by Borrower in favor of Original Lender and recorded on June 26, 2013 under
CRFN 2013 000252303

 

7.          Reserved.

 

8.          UCC
Financing Statement reflecting Borrower, as debtor, and Original Lender, as secured party and filed with the Secretary of State
of Delaware under File No. 2013 1678920, as amended
and/or assigned.

 

9.          Limited
Recourse Guaranty dated May 1, 2013 executed by Current Indemnitor in favor of Original Lender, as assigned to Lender (the “Guaranty”).

 

10.         Environmental
Indemnity Agreement dated as of May 1, 2013, executed by Borrower and Current Indemnitor in favor of Original Lender, as assigned
to Lender (the “Environmental Indemnity”).

 

11.         Deposit
Account Control Agreement dated as of May 1, 2013, executed by Borrower, Original Lender and PNC Bank, National Association, as
assigned to Lender.

 

EXECUTION COPY

 

     

     

    

 

SCHEDULE 3.31

 

BORROWER’S POST REQUESTED ACTIONS
ORGANIZATIONAL CHART

 

 

EXECUTION COPY

  

     

     

    

 

JOINDER
BY AND AGREEMENT OF CURRENT INDEMNITOR

 

The
undersigned, DAVID BISTRICER (“Current Indemnitor”), being the Current Indemnitor referred to in the
Consent Agreement (the “Consent Agreement”) to which this Joinder by and Agreement of Current Indemnitor (the
“Current Indemnitor Joinder”) is attached, hereby joins in the execution of the Consent Agreement to reaffirm
his obligations under the Guaranty and the Environmental Indemnity, and to represent and warrant to, and acknowledge and agrees
with, Lender the following:

 

1.          Defined
Terms. All capitalized terms used in this Current Indemnitor Joinder, unless defined herein, shall have the meanings
given such terms in the Consent Agreement.

 

2.          Reaffirmation
of Guaranty and Environmental Indemnity. The Guaranty and the Environmental Indemnity constitute the valid, legally
binding obligation of Current Indemnitor, enforceable against Current Indemnitor in accordance with their terms. By Current Indemnitor’s
execution hereof, Current Indemnitor waives and releases any and all defenses, affirmative defenses (other than payment or performance
in full), setoffs, claims, counterclaims and causes of action of any kind or nature which Current Indemnitor has asserted, or
might assert, against any of Lender Parties which in any way relate to or arise out of the Guaranty, the Environmental Indemnity
or any of the other Loan Documents.

 

3.          Agreements
of Current Indemnitor. Current Indemnitor consents to the execution and delivery of the Consent Agreement by Borrower
and agrees and acknowledges that the liability of Current Indemnitor under the Guaranty and the Environmental Indemnity shall
not be diminished in any way by the execution and delivery of the Consent Agreement or by the consummation of any of the transactions
contemplated therein, including but not limited to the Requested Actions.

 

4.          Confirmation
of Representations and Covenants. By his execution hereof, Current Indemnitor confirms the representations and
warranties and agrees to the covenants regarding Current Indemnitor set forth in the Consent Agreement, including, but not limited
to, the obligation to pay the Indemnification Costs under Sections 1.8 and 1.26 of the Consent Agreement.

 

5.          Authority
Representations by the Current Indemnitor. The execution and delivery of, and performance under, this Current Indemnitor
Joinder by Current Indemnitor will not (a) violate any provision of any law, rule, regulation, order, writ, judgment, injunction,
decree, determination or award presently in effect having applicability to any Current Indemnitor or (b) result in a breach of
or constitute or cause a default under any indenture, agreement, lease or instrument to which any Current Indemnitor is a party
or by which the Project may be bound or affected.

 

EXECUTION
COPY

 

     

     

    

 

6.          Governing
Law. This Current Indemnitor Joinder shall be governed, interpreted, construed and enforced in accordance with
the laws of the State of New York.

 

The
undersigned Current Indemnitor has executed and delivered this Current Indemnitor Joinder to be effective as of the date of the
Consent Agreement.

 

	 	 	CURRENT INDEMNITOR:
	 	 	 
	/s/ Lawrence Kreider	 	/s/ David Bistricer
	Print Name:	Lawrence Kreider	 	DAVID BISTRICER
	 	 	 
	/s/ Shoshana Yavneh	 	 
	Print Name:	Shoshana Yavneh	 	 

 

State of
New York )

County
of_____) ss.:

 

On
the 2 day of Dec in the year 2015 before me, the undersigned, personally appeared DAVID
BISTRICER, personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s)
is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies),
and that by his/her their signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s)
acted, executed the instrument.

 

	/s/ Chaya Sara Beer	 
	Signature and Office of individual	 
	taking acknowledgment	 

 

CHAYA SARA BEER

Notary Public, State
of New York

No. 24-4960111

Qualified in Kings
County

Commission Expires
Dec. 18, 2018

 

EXECUTION COPY

 

    	 	2	 

     

    

 

JOINDER
BY AND AGREEMENT OF NEW INDEMNITOR

 

The
undersigned, CLIPPER REALTY L.P., a Delaware limited liability
company (“New Indemnitor”), being the New Indemnitor
referred to in the Consent Agreement (the “Consent Agreement”)
to which this Joinder by and Agreement of New Indemnitor (the “New
Indemnitor Joinder”) is attached, hereby joins in the execution of the Consent Agreement to assume, on a joint
and several basis with Current Indemnitor, all of Current Indemnitor’s obligations under the Guaranty and the Environmental
Indemnity, and to represent and warrant to, and acknowledge and agrees with, Lender the following:

 

1.          Defined
Terms.  All capitalized terms used in this New Indemnitor Joinder, unless defined herein, shall have the meanings
given such terms in the Consent Agreement or the Current Indemnitor Joinder attached thereto.

 

2.          Benefit
to New Indemnitor. New Indemnitor owns a direct and/or indirect interest in Borrower as a result of the Requested
Actions and has received substantial benefit from Lender’s consent to the Requested Actions.

 

3.          Assumption
by New Indemnitor of Guaranty. New Indemnitor hereby assumes and agrees, on a joint and several basis with Current
Indemnitor, to be liable and responsible for and bound by all of Current Indemnitor’s obligations, agreements and
liabilities under the Guaranty, as amended hereby, including but not limited to the jury waiver and other waivers set forth
therein, as fully and completely as if New Indemnitor had originally executed and delivered such Guaranty, as amended hereby,
as the guarantor/indemnitor thereunder. New Indemnitor further agrees to pay, perform and discharge each and every obligation
of payment and performance of Current Indemnitor under, pursuant to and as set forth in the Guaranty, as amended hereby, at
the time, in the manner and otherwise in all respects as therein provided. From and after the Effective Date, the Guaranty is
amended to provide that all references to the term “Guarantor” used in the Guaranty shall mean and refer to New
Indemnitor.

 

4.          Assumption
by New Indemnitor of Environmental Indemnity.  New Indemnitor hereby assumes and agrees, on a joint and several basis
with Current Indemnitor, to be liable and responsible for and bound by all of the Current Indemnitor’s obligations, agreements
and liabilities, including but not limited to the jury waiver and other waivers set forth therein, under the Environmental Indemnity
as fully and completely as if New Indemnitor had signed such Environmental Indemnity, as amended hereby, as the indemnitor/guarantor
thereunder, including without limitation, all of those obligations, agreements and liabilities which would have been the obligations,
agreements and liabilities of Current Indemnitor, without regard to when such obligations, agreements and liabilities arise, accrue
or have arisen or accrued and without regard to Current Indemnitor’s responsibility therefore, if any. New Indemnitor further
agrees to pay, perform, and discharge each and every obligation of payment and performance of any guarantor/indemnitor under,
pursuant to and as set forth in the Environmental Indemnity, as amended hereby, at the time, in the manner and otherwise in all
respects as therein provided. The liability of New Indemnitor under this paragraph shall be joint and several with that of each
other and with that of Borrower.

  

EXECUTION
COPY 

 

     

     

    

 

5.          Confirmation
of Representations and Covenants.  By its execution hereof, New Indemnitor confirms the representations and
warranties and agrees to the covenants regarding New Indemnitor set forth in the Consent Agreement, including, but not
limited to, the obligation to pay the Indemnification Costs under Section 1.8 of the Consent Agreement.

 

6.          Notices
to New Indemnitor. From and after the date of completion of the Requested Actions, Lender shall deliver any notices to
New Indemnitor which are required to be delivered pursuant to the Guaranty and/or the Environmental Indemnity, or are otherwise
delivered by the Lender thereunder at Lender’s sole discretion, to the New Indemnitor at the following address:

 

Clipper
Realty, L.P.

c/o
Clipper Realty, Inc.

4611
12th Avenue, Apt. 1L

Brooklyn,
New York 11219

Attention:
David Bistricer

Facsimile:
(718) 435-3848

Telephone:
(718) 438-2804

Email:
DBistricer@clippereauitv.com

 

With
a copy to:

 

Sullivan
& Cromwell LLP

125
Broad Street

New
York, New York 10004

Attention:
Robert W. Downes

Facsimile:
(212) 291-9043

Telephone:
(212) 558-4312

Email:
downesr@sullcrom.com

 

7.          All
notices to be sent by New Indemnitor to Lender under the Guaranty and/or the Environmental indemnity shall be sent to Lender in
the manner set forth in and at the address shown in Section 3.7 of the Agreement to which this New Indemnitor Joinder is attached

 

8.          Governing
Law.  This New Indemnitor Joinder shall be governed, interpreted, construed and enforced in accordance with
the laws of the State of New York.

 

[SIGNATURE ON FOLLOWING PAGE]

 

EXECUTION COPY 

 

    	 	2	 

     

    

 

The
undersigned New Indemnitor has executed and delivered this New Indemnitor Joinder to be effective as of the date of the Consent
Agreement

 

	 	 	NEW
    INDEMNITOR:
	 	 	 
	 	 	CLIPPER
    REALTY L.P., a Delaware limited liability company
	 	 	 	 
	 	 	By: 	Clipper
    Realty Inc., a Maryland corporation, its General Partner
	 	 	 	 	 
	/s/ Lawrence Kreider	 	 	By:	/s/ David Bistricer
	Print Name:
    	Lawrence
    Kreider	 	 	Name:	 
	 	 	 	Title:	 
	/s/ Shoshana Yavneh	 	 	 	 
	Print Name: 	Shoshana Yavneh	 	 	 	 

 

State of
New York )

County
of________) ss.:

 

On
the 2 day of Dec in the year 2015 before me, the undersigned, personally appeared David Bistricer, personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s)
is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies),
and that by his/her their signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s)
acted, executed the instrument.

 

	/s/ Chaya Sara Beer	 
	Signature and Office of individual	 
	Taking acknowledgment	 

 

	 	CHAYA
    SARA BEER
	 	Notary Public, State
    of New York
	 	No. 24-4960111
	 	Qualified in Kings
    County
	 	Commission Expires
    Dec. 18, 2018

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