Document:

Exhibit
10.18

 

Execution
Copy

 

 

 

AGREEMENT
OF LEASE

 

between

 

240 WEST
40TH LLC

 

Landlord

 

and

 

THE DONNA
KARAN COMPANY LLC

 

Tenant

 

Dated
as of August __, 2006

 

Entire
Rentable Area of: Basement, 2nd Floor through 12th Floors and Penthouse

240 West
40th Street

New York,
New York

 

 

 

    	 	 	 

     

    

  

TABLE
OF CONTENTS

  

	TABLE OF CONTENTS	i
	 	 	 
	ARTICLE 1	DEMISE; PREMISES AND PURPOSE	1
	 	 	 
	ARTICLE 2	TERM	2
	 	 	 
	ARTICLE 3	RENT AND ADDITIONAL RENT	3
	 	 	 
	ARTICLE 4	ASSIGNMENT/SUBLETTING	3
	 	 	 
	ARTICLE 5	DEFAULT	13
	 	 	 
	ARTICLE 6	RELETTING, ETC.	14
	 	 	 
	ARTICLE 7	LANDLORD MAY CURE DEFAULTS	15
	 	 	 
	ARTICLE 8	ALTERATIONS	15
	 	 	 
	ARTICLE 9	LIENS	19
	 	 	 
	ARTICLE 10	REPAIRS	19
	 	 	 
	ARTICLE 11	FIRE OR OTHER CASUALTY	21
	 	 	 
	ARTICLE 12	END OF TERM	23
	 	 	 
	ARTICLE 13	SUBORDINATION AND ESTOPPEL, ETC.	24
	 	 	 
	ARTICLE 14	CONDEMNATION	27
	 	 	 
	ARTICLE 15	REQUIREMENTS OF LAW	27
	 	 	 
	ARTICLE 16	CERTIFICATE OF OCCUPANCY	28
	 	 	 
	ARTICLE 17	POSSESSION	29
	 	 	 
	ARTICLE 18	QUIET ENJOYMENT	29
	 	 	 
	ARTICLE 19	RIGHT OF ENTRY	29
	 	 	 
	ARTICLE 20	INDEMNITY	30
	 	 	 
	ARTICLE 21	LANDLORD’S LIABILITY, ETC.	30
	 	 	 
	ARTICLE 22	CONDITION OF PREMISES	31
	 	 	 
	ARTICLE 23	CLEANING	33
	 	 	 
	ARTICLE 24	JURY WAIVER	33
	 	 	 
	ARTICLE 25	NO WAIVER, ETC.	33
	 	 	 
	ARTICLE 26	OCUPPANCY AND USE BY TENANT	34

  

    	 	i	 

     

    

 

	ARTICLE 27	NOTICES	35
	 	 	 
	ARTICLE 28	WATER	35
	 	 	 
	ARTICLE 29	SPRINKLER SYSTEM	36
	 	 	 
	ARTICLE 30	HEAT, ELEVATOR, ETC.	36
	 	 	 
	ARTICLE 31	SECURITY DEPOSIT	37
	 	 	 
	ARTICLE 32	TAX ESCALATION	39
	 	 	 
	ARTICLE 33	RENT CONTROL	42
	 	 	 
	ARTICLE 34	SUPPLIES	42
	 	 	 
	ARTICLE 35	AIR CONDITIONING	43
	 	 	 
	ARTICLE 36	SHORING	44
	 	 	 
	ARTICLE 37	EFFECT OF CONVEYANCE, ETC.	44
	 	 	 
	ARTICLE 38	RIGHTS OF SUCCESSORS AND ASSIGNS	45
	 	 	 
	ARTICLE 39	CAPTIONS	45
	 	 	 
	ARTICLE 40	BROKERS	45
	 	 	 
	ARTICLE 41	ELECTRICITY	46
	 	 	 
	ARTICLE 42	LEASE SUBMISSION	48
	 	 	 
	ARTICLE 43	INSURANCE	48
	 	 	 
	ARTICLE 44	SIGNAGE	51
	 	 	 
	ARTICLE 45	INTENTIONALLY DELETED.	52
	 	 	 
	ARTICLE 46	FUTURE CONDOMINIUM CONVERSION	52
	 	 	 
	ARTICLE 47	MISCELLANEOUS	52
	 	 	 
	ARTICLE 48	INTENTIONALLY OMITTED	53
	 	 	 
	ARTICLE 49	INTENTIONALLY OMITTED	53
	 	 	 
	ARTICLE 50	OPERATING EXPENSE ESCALATION	53
	 	 	 
	ARTICLE 51	RETAIL SPACE USE IN THE BUILDING	62
	 	 	 
	ARTICLE 52	RENEWAL OPTION	62
	 	 	 
	ARTICLE 53	RIGHTS OF PURCHASE	64

 

    	 	ii	 

     

    

 

	ARTICLE 54	COMMUNICATIONS DISH OPTION	67
	 	 	 
	ARTICLE 55	LANDLORD’S CONTRIBUTION	70
	 	 	 
	ARTICLE 56	EXISTING PASSAGES TO 250 WEST 40TH STREET	73
	 	 	 
	ARTICLE 57	RETAIL SPACE USE IN THE BUILDING	74
	 	 	 
	ARTICLE 58	ROOF USE	74
	 	 	 
	ARTICLE 59	TENANT’S SECURITY MEASURES	76
	 	 	 
	ARTICLE 60	FREIGHT ELEVATOR SERVICE	77
	 	 	 
	ARTICLE 61	rULES AND REGULATIONS	80

 

    	 	iii	 

     

    

  

	TERM	INDEX OF DEFINED TERMS	 
	 	PAGE	 

 

	AAA Arbitrator	10
	Additional Rent	2
	Applicable Laws	28
	Appraiser	65
	Alterations	10
	Arbiter	61
	Audit	61
	Base Tax Year	27
	Brokers	33
	Building	1
	Building Cleaning Contractor	23
	Building Project	27
	Building Systems	20
	Cash Security	38
	Commencement Date	2
	Communications Dish	68
	Communications Dish Area	68
	Communication Dish Option	68
	Comparative Year	27
	Cooling Season	3 1
	Cooling Tower Plans	71
	Critical Repair Items	21
	Declaration	42
	Delivery Personnel	1
	Designated Agent	3
	ERIF	33
	Escrowee	38
	Estoppel Certificate	27
	excess electricity	35
	Existing Cooling Tower	71
	Existing HVAC Equipment	31
	Existing Leases	38
	Existing Premises	l
	Expenses	55
	Expense Payment	59
	Expiration Date	2
	Fair Market Rent	64
	First Refusal Notice	65
	Fixed Annual Rent	2
	Force Majeure	72
	Freight Hours	78
	Freight Items	78
	Future Senior Interest	27

 

    	 	iv	 

     

    

 

	HVAC System	31
	Independent Broker	66
	Insurance Expenses Payment	60
	Interest Rate	34
	Landlord	1
	Landlord’s Arbitration Determination	65
	Landlord’s Contribution	72
	Landlord’s Detern1ination	64
	Landlord’s Electrical Consultant	34
	Landlord’s Existing Premises Work	32
	Landlord’s Relocation Work	41
	Landlord’s Restoration Work	13
	Landlord’s 3rd Floor Work	32
	Landlord’s Work	22
	Lease	1
	Leaseback Area	4
	Lobby HVAC	20
	LOC	38
	Major Casualty	23
	Mutual Dejennination	65
	Named Tenant	52
	Non-Structural  Alteration	17
	Ordinary Business Hours	34
	Ordinary Equipment	34
	Other Comn1unications Equipment	71
	Premises	1
	Qualified Renovations	72
	Real Estate Taxes	28
	Recapture Date	4
	Records	61
	Reimbursement	73
	Related Entity	11
	Relocation Effective Date	41
	Relocation Notice	41
	Relocation Space	4I
	Rent	2
	Renewal Option	63
	Renewal Notice	63
	Renewal Notice Date	63
	Renewal Term	63
	Requisition	72
	Retainage	73
	ROFO Purchase Option	65
	ROFO Notice	65
	ROFR Purchase Option	67

 

    	 	v	 

     

    

 

	ROFR Notice	66
	Roof Deck	74
	Security	27
	Senior Interest	27
	Senior Interest Holder	27
	SNDA Agreement	27
	Specialty Alteration	16
	Structural Alteration	15
	Supplemental Systems	3 I
	Tenant	1
	Tenant’s Arbitration Determination	65
	Tenant Cleaning Services	23
	Tenant’s Communications Dish Option Notice	69
	Tenant’s Cooling Tower  Work	71
	Tenant’s Determination	64
	Tenant’s Electric Percentage	46
	Tenant’s Recapture Offer	4
	Tenant’s Roof Deck Rights	74
	Tenant’s Self Help Right	21
	Tenant’s Share	27
	Tenant’s Statements	61
	Term	2
	Third Party Tenant	64
	Untenantable Casualty Space	22
	Wiring	68
	Work Costs	72
	250 Building	74
	250 Passageways	74
	3rd Floor Commencement Date	2
	3rd Floor Premises	l
	3rd Party Offer	66

 

    	 	vi	 

     

    

  

LEASE
(this “Lease”) made as of the            day of
August 2006 between 240 WEST 40TH LLC having an office c/o Sitt Asset Management LLC, P.O. Box 2300, New York, New
York 10116-2300, hereinafter referred to as “Landlord”, and THE DONNA KARAN COMPANY LLC, a New York limited
liability company, having an office at240 West 40th Street, New York, New York, Attn: Chief Financial Officer, hereinafter
referred to as “Tenant”.

 

W I
T N E S S E T H

 

Landlord
and Tenant, in consideration of the mutual agreements herein contained and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, hereby covenant and agree as follows:

 

ARTICLE
1

 

DEM
ISE; PREMISES AND PURPOSE

 

1.01      Landlord
hereby leases and demises to Tenant, and Tenant hereby hires and takes from Landlord, those certain premises located on and comprising
the entire rentable portion of: the basement, the second (2nd) floor, the fourth (4th ) through twelfth
(12th ) floors and the penthouse (the “Existing Premises”) and the entire rentable portion of the third
(3rd) floor (the “3rd Floor Premises”, the Existing Premises and 3rd Floor Premises being collectively
referred to herein as the “Premises”), approximately as indicated by hatch marks on the plans annexed hereto and made
a part hereof collectively as “Exhibit A-1” and “Exhibit A-2” in the building known as and
located at 240 West 40th Street, New York, New York (the “Building”) subject to the provisions of
this Lease. This Lease shall not be recorded by Tenant as a matter of public record under any circumstance; provided however,
upon Tenant’s request, Landlord and Tenant shall simultaneously execute (i) a· memorandum of this Lease, in recordable
form, in the form annexed hereto and made a part hereof as “Exhibit B-1” and (ii) a discharge of memorandum
of lease, in recordable form, in the form annexed hereto and made a part hereof as “Exhibit B-2“to be held
in escrow by Landlord’s attorneys, Cyruli Shanks & Zizmor LLP, at their offices at 420 Lexington Avenue, New York, New
York 10170 (“Escrowee”) until the expiration of the Lease or on such earlier date upon which the Term shall
expire, be canceled or terminated pursuant to any of the conditions or covenants of this Lease or pursuant to law, and Tenant
may, at its sole cost and expense, record said memorandum and, upon recordation, deliver duplicate copy of the recorded memorandum
to Landlord, at which time, the discharge held in escrow shall be promptly released therefrom and delivered to Landlord. Such
memorandum shall not be deemed to modify or change any provisions of this Lease.

 

1.02     The
Premises shall be used and occupied for any use which is permitted as of the date hereof by the certificate of occupancy for the
Building and by all applicable laws, codes, rules and regulations of governmental and quasi-governmental authorities and agencies
having jurisdiction, and at all times such uses shall be undertaken in a manner consistent with and in keeping with the character
of a first (1st) class high-rise office building located in midtown

 

    	 	1	 

     

    

 

Manhattan
and Tenant’s current use of the Existing Premises is in keeping with such first (1st) class character, and for
no other purpose.

 

1.03       Neither
the Premises, nor the halls, corridors, stairways, elevators or any other portion of the Building shall be used by the Tenant
or the Tenant’s servants, employees, licensees, invitees or visitors in connection with the aforesaid permitted use or otherwise
so as to cause any congestion of the public portions of the Building or the entranceways, sidewalks or roadways adjoining the
Building whether by trucking or by the congregating or loitering thereon of the Tenant and/or the servants, employees, licensees,
invitees or visitors of the Tenant.

 

1.04      Tenant
shall not permit messengers, delivery personnel or other individuals providing such services to Tenant (“Delivery Personnel”)
to: (i) assemble, congregate or to form a line outside of the Premises or the Building or otherwise impede the flow of pedestrian
traffic outside of the Premises or Building or (ii) park or otherwise leave bicycles, wagons or other delivery carts outside of
the Premises or the Building except in locations outside of the Building designated by Landlord from time-to-time. Notwithstanding
anything to the contrary contained herein, Tenant shall be permitted to maintain an “in-house” messenger or delivery
service (Tenant’s Delivery Personnel”) within the Premises, provided that Tenant’s Delivery Personnel: (i) shall
have appropriate identification and shall display such identification upon request, and (ii) shall comply with all rules and regulations
promulgated by Landlord from time-to time; provided however, for so long as Tenant or anyone claiming through Tenant occupies
the entire rentable portion of the Building, Tenant’s Delivery Personnel shall only required to conduct themselves in a
proper and professional manner consistent with delivery service personnel servicing office buildings in midtown Manhattan of similar
age, size character and location.

 

ARTICLE
2

 

TERM

 

2.01      The
Existing Premises are leased for a term of approximately ten (10) years (the “Term”) which shall commence on
August 1, 2006 (the “Commencement Date”) and shall end on July 31, 2016 (the “Expiration Date”)
or on such earlier date upon which the Term shall expire, be canceled or terminated pursuant to any of the conditions or covenants
of this Lease or pursuant to law.

 

2.02      The
3rd Floor Premises shall be added to the Premises under all the applicable terms, covenants and conditions of the Lease,
for a term which shall commence ten (10) days following the date which Landlord gives Tenant written notice that the 3rd
Floor Premises is available for occupancy (the “3rd Floor Commencement Date”) and shall end
on the Expiration Date or on such earlier date upon which the Term shall expire, be canceled or terminated pursuant to any of
the conditions or covenants of this Lease or pursuant to law; but in no event shall the 3rd Floor Commencement Date
occur: (i) before nine (9) months from the date hereof, or (ii) after July 1, 2008, subject to Force Majeure (defined in Article
55 herein). If Landlord shall not have delivered to Tenant possession of the 3rd Floor Premises, on or before December
1, 2008, then Tenant may

 

    	 	2	 

     

    

 

within thirty
(30) days thereafter unequivocally and unconditionally notify Landlord that Tenant elects to terminate and cancel this Lease with
respect to the 3rd Floor Premises only, effective as of the date which is no less than thirty (30) days after the delivery
of the notice (the “Cancellation Date”), provided, however, that the Cancellation Date shall be extended by
one (1) day for each day of delay by Landlord which is due to any acts or omissions of Tenant, its employees, agents, representatives
or servants. However, in the event that Landlord gives Tenant notice that thee 3rd Floor Premises will be delivered
to Tenant prior to the Cancellation Date, and possession of the 3rd Floor Premises is delivered to Tenant prior to
the Cancellation Date then, in such event, Landlord’s notice shall negate and nullify Tenant’s notice.

 

ARTICLE
3

 

RENT
AND ADDITIONAL RENT

 

3.01      Tenant
shall pay fixed annual rent without electricity (the “Fixed Annual Rent”) at the rates provided for in the
schedules annexed hereto and made a part hereof as “Exhibit C-1” and “Exhibit C-2” in equal
monthly installments in advance on the first (1st) day of each calendar month during the Term. All sums other than
Fixed Annual Rent payable hereunder shall be deemed to be “Additional Rent” and shall be payable within fourteen
(14) days of demand, unless other payment dates are hereinafter provided. Tenant shall pay all Fixed Annual Rent and Additional
Rent due hereunder at the office of Landlord or such other place as Landlord may designate, payable in
United States legal tender, by cash, or by good and sufficient check drawn on a bank which is a member of the FDIC or a
successor thereto, or upon prior written notice to Landlord, by wire transfer to an account designated in writing by Landlord,
and without any set off or deduction whatsoever, except as otherwise expressly provided herein. The term “Rent”
as used in this Lease shall mean Fixed Annual Rent and Additional Rent. Landlord may apply payments made by Tenant towards the
payment of any item of Fixed Annual Rent and/or Additional Rent payable hereunder notwithstanding any designation by Tenant as
to the items against which any such payment should be credited.

 

3.02      As
a component of Additional Rent, in addition to Fixed Annual Rent, Tenant shall pay to Landlord beginning on January 1, 2009 and
on the first (1st) day of January for each calendar year during the Term thereafter a lump sum payment of $26,000.00
at the office of Landlord or such other place as Landlord may designate, payable in United States legal tender, by cash, or by
good and sufficient check drawn on a bank which is a member of the FDIC or a successor thereto, and without any set off or deduction
whatsoever.

 

ARTICLE
4

 

ASSIGNMENT/SUBLETTING

 

4.0I      Neither
Tenant nor Tenant’s legal representatives or successors in interest by operation of law or otherwise, shall assign, mortgage
or otherwise encumber this Lease, or sublet or

 

    	 	3	 

     

    

 

permit the
entire Premises to be used by others, without the prior written consent of Landlord in each instance (it be acknowledged that
a subletting of less than the entire Premises shall not require Landlord’s consent, but shall otherwise comply with all
other applicable terms and conditions of this Article 4). Subject to the provisions below the transfer of a majority of the issued
and outstanding capital stock of any corporate tenant of this Lease or sublessee of this Lease occupying space greater than the
equivalent of one (1) full floor of the Building or a majority of the total interest in any partnership tenant or sublessee or
company, however accomplished, and whether in a single transaction or in a series of related or unrelated transactions, the conversion
of a tenant or sublessee entity to either a limited liability company or a limited liability partnership (provided however, such
conversion to a limited liability company or a limited liability partnership shall not be deemed an assignment requiring Landlord’s
prior consent provided that: (i) all of the assets of Tenant are transferred to the new entity; (ii) the new entity is duly authorized
and does assume all of tenant’s obligations of the Lease; and (iii) Tenant give Landlord at lease fourteen (14) days prior
notice of such conversion along with (a) the name and address of the new entity, (b) a duly executed counterpart of assignment
agreement, and (c) reasonably satisfactory documentation establishing the requirements of (i) and (ii) above) or the merger or
consolidation of a corporate tenant or sublessee, shall be deemed an assignment of this Lease or of such sublease. The transfer
of issued and outstanding capital stock, for purposes of this Article, shall not include the public sale of such stock (i) by
persons who are not those deemed “insiders” within the meaning of the Securities Exchange Act of 1934 as amended,
and which sale is (ii) effected through the “over-the-counter market” or through any legitimate stock exchange recognized
in the United States. If this Lease is assigned, or if the Premises or any part thereof is underlet or occupied by anybody other
than Tenant, Landlord may, after default by Tenant, after notice and the expiration of the cure period applicable to such default
hereunder, if any, collect rent from the assignee, undertenant or occupant, and apply the net amount collected to the rent herein
reserved, but no assignment, underletting, occupancy or collection shall be deemed a waiver of the provisions hereof, the acceptance
of the assignee, undertenant or occupant as tenant, or a release of Tenant from the further performance by Tenant of covenants
on the part of Tenant herein contained. The consent by Landlord to an assignment or underletting shall not in any way be construed
to relieve Tenant from obtaining the express consent in writing of Landlord to any further assignment or underletting to the extent
required by the terms hereof. In no event shall any permitted sublessee assign or encumber its sublease or further sublet all
or any portion of its sublet space, or otherwise suffer or permit the sublet space or any part thereof to be used or occupied
by others, without Landlord’s prior written consent in each instance; provided however, Landlord’s consent shall not
be required with respect to one (1) further subletting of the Premises, or a portion thereof by an Affiliate (as herein defined
below), subject to, and provided that each such further assignment or subletting is in compliance with, all other applicable provisions
of this Article. A modification, amendment or extension of a sublease shall be deemed a sublease. The listing of the name of a
party or entity other than that of Tenant on the Building or floor directory or on or adjacent to the entrance door to the Premises
shall neither grant such party or entity any right or interest in this Lease or in the Premises nor constitute Landlord’s
consent to any assignment or sublease to, or occupancy of the Premises by, such party or entity. If any lien is filed against
the Premises or the Building of which the same form a part for brokerage services claimed to have been performed for Tenant in
connection with any such assignment or sublease, whether or not actually performed, the same shall be discharged within ten (10)
days thereafter, at Tenant’s expense, by filing the bond required by law, or otherwise, and paying any other necessary sums,
and Tenant agrees to

 

    	 	4	 

     

    

 

indemnify
Landlord and its agents and hold them harmless from and against any and all claims, losses or liability resulting from such lien
for brokerage services rendered.

 

4.02      If
Tenant desires to assign this Lease or to sublet all of the Premises for the balance or substantially the balance of the Term
of this Lease, it shall first submit in writing to Landlord a notice (the “Tenant’s Recapture Offer”)
which states, with respect to each such prospective assignment or subletting, all of the relevant terms and conditions upon which
Tenant is willing to assign this Lease or sublet the Premises, whichever may be applicable, and which shall be deemed an offer
under the terms and conditions contained in Tenant’s Recapture Offer (i) with respect to a prospective assignment, to assign
this Lease to Landlord without any payment of moneys or other consideration therefor, or, (ii) with respect to a prospective subletting,
to sublet to Landlord the entire Premises (“Leaseback Area”) on the same terms, covenants and conditions (including
provisions relating to escalation rents) as are contained therein. Tenant’s Recapture Offer shall specify the date when
the Leaseback Area will be made available to Landlord, which date shall be in no event earlier than thirty (30) days nor later
than one hundred twenty (120) days following the acceptance of Tenant’s Recapture Offer (the “Recapture Date”).
If an offer of sublease is made, and if the proposed sublease will result in a sublease for the balance or substantially the balance
of the Term of this Lease, then Landlord shall have the option to extend the term of its proposed sublease for the balance of
the Term of this Lease less one (1) day. Landlord shall have a period of thirty (30) days from the receipt of such Tenant’s
Recapture Offer to either accept or reject Tenant’s Recapture Offer or, with respect to a proposed assignment of this Lease
or sublease of all of the Premises for the balance or substantially the balance of the Term of this Lease, to terminate this Lease.
If Tenant is in default under this Lease, after notice and the expiration of the cure period applicable to such default hereunder,
if any, at any time that Tenant desires to give Tenant’s Assignment Recapture Offer Notice, Tenant shall have no right to
do so and any such Tenant’s Assignment Recapture Offer Notice purportedly given at such time shall be ineffective and invalid.
Notwithstanding anything contained herein to the contrary, but subject to the provisions of Sections 4.12 and 4.13 of this Article,
the provisions of this Section 4.02 shall not apply to an assignment of this Lease or sublet of the entire Premises to a “Related
Entity” (defined below).

 

4.03.      If
Landlord exercises its option to terminate this Lease pursuant to the provisions of Section 4.02 of this Article, then (i) the
term of this Lease shall end at the election of Landlord either (x) on the date that such assignment or sublet was to become effective
or commence, as the case may be, or (y) on the Recapture Date and (ii) Tenant shall surrender to Landlord and vacate the Premises
on or before such date in the same condition as is otherwise required upon the expiration of this Lease by its terms, (iii) the
Rent and Additional Rent due hereunder shall be paid and apportioned to such date, and (iv) Landlord shall be free to lease the
Premises (or any portion thereof) to any individual or entity including, without limitation, Tenant’s proposed assignee
or subtenant.

 

4.04.      If
Landlord shall accept Tenant’s Recapture Offer Tenant shall then execute and deliver to Landlord, or to anyone designated
or named by Landlord, an assignment or sublease, as the case may be, in either case in a form reasonably satisfactory to Landlord’s
and Tenant’s counsel.

 

    	 	5	 

     

    

 

If a sublease is
so made it shall expressly:

 

(i)         permit
Landlord to make further subleases of all or any part of the Leaseback Area and (at no cost or expense to Tenant) to make and
authorize any and all changes, alterations, installations and improvements in such space as necessary;

 

(ii)       provide
that Tenant will at all times permit reasonably appropriate means of ingress to and egress from the Leaseback Area to the extent
required under the subleasing proposed by Tenant in connection with Tenant’s Recapture Offer;

 

(iii)      negate
any intention that the estate created under such sublease be merged with any other estate held by either of the parties;

 

(iv)      provide
that Landlord shall accept the Leaseback Area “as is” except that Landlord, at Tenant’s expense, shall perform
all such work and make all such alterations as may be required physically to separate the Leaseback Area from the remainder of
the Premises and to permit lawful occupancy, it being intended that Tenant shall have no other cost or expense in connection with
the subletting of the Leaseback Area;

 

(v)       provide
that at the expiration of the term of such sublease, Tenant will accept the Leaseback Area in its then existing condition, subject
to the obligations of Landlord to make such repairs thereto as may be necessary to preserve the Leaseback Area in good order and
condition, ordinary wear and tear excepted.

 

4.05     Landlord
shall indemnify and save Tenant harmless from all obligations under this Lease as to the Leaseback Area during the period of time
it is so sublet, except for Fixed Annual Rent and Additional Rent, if any, due under the within Lease, which are in excess of
the rents and additional sums due under such sublease. Subject to the foregoing, performance by Landlord, or its designee, under
a sublease of the Leaseback Area shall be deemed performance by Tenant of any similar obligation under this Lease and any default
under any such sublease shall not give rise to a default under a similar obligation contained in this Lease, nor shall Tenant
be liable for any default under this Lease or deemed to be in default hereunder if such default is occasioned by or arises from
any act or omission of the tenant under such sublease or is occasioned by or arises from any act or omission of any occupant holding
under or pursuant to any such sublease: in the event, the Leaseback rent is not paid by Landlord to Tenant, then Tenant may offset
such amounts against Rent.

 

4.06     lf
Tenant requests Landlord’s consent to a specific assignment or subletting, it shall submit in writing to Landlord (i) the
name and address of the proposed assignee or sublessee, (ii) a duly executed term sheet or letter of intent setting for the material
economic and non-economic terms of the proposed agreement of assignment or sublease, not subject to further negotiation or review,
(iii) reasonably satisfactory information as to the nature and character of the business of the proposed assignee or sublessee
and as to the nature of its proposed use of the space, and (iv) banking, frnancial or other credit information relating to the
proposed assignee or sublessee to the extent available to Tenant and reasonably sufficient to enable Landlord to determine the
financial responsibility and character of the proposed assignee or sublessee.

 

    	 	6	 

     

    

 

4.07.      If
Landlord shall not have accepted Tenant’s Recapture Offer and Landlord shall not have terminated this Lease, as provided
for in Section 4.02 hereof, then Landlord will not unreasonably withhold or delay its consent to Tenant’s request for consent
to such specific assignment or subletting for the use permitted under this Lease, provided that any such assignment or subletting
for the entire Premises shall (i) have economic terms that shall not vary by more than seven (7%) percent from the economic terms
contained in Tenant’s Recapture Offer, (ii) be for a term expiring not more than three (3) months before or beyond the term
designated in Tenant’s Recapture Offer and be upon substantially all of the material terms and conditions set forth in Tenant’s
Recapture Offer (iii) comply with all other applicable provisions of this Article (and in the event that the economic terms and/or
the term of such proposed subletting or assignment, as the case may be, vary from the economic terms and/or the term contained
in Tenant’s Recapture Offer beyond the variances set forth above, or in the event that an assignment or sublease is not
effected within one hundred eighty (180) days following the date upon which Tenant’s Recapture Offer is given by Tenant
to Landlord, then Tenant’s request for consent shall be deemed to constitute a new Tenant’s Recapture Offer to Landlord
under the terms and conditions contained in the proposed sublease or assignment, as the case may be, with respect to which all
of the provisions of this Article 4 shall again apply), and provided further that:

 

(i)        The
Premises shall not, without Landlord’s prior consent, have been listed or otherwise publicly advertised for assignment or
subletting at a rental rate lower than the then prevailing rental rate for space in the Building; ·

 

(ii)       The
proposed assignee or subtenant shall have a financial standing, be of a character, be engaged in a business, and propose to use
the Premises, in a manner consistent with the permitted use and in keeping with the standards of the Building;

 

(iii)      The
proposed assignee or subtenant shall not be a tenant, subtenant, assignee or occupant of any space in the Building, nor shall
the proposed assignee or subtenant be a person or entity who has dealt with Landlord or Landlord’s agent (directly or through
a broker) with respect to space in the Building during the six (6) months immediately preceding Tenant’s request for Landlord’s
consent (the foregoing shall not apply to any assignment or sublease for the entire Premises hereunder for so long as Tenant
or anyone claiming through Tenant occupies the entire rentable portion of the Building);

 

(iv)      The
character of the business to be conducted in the Premises by the proposed assignee or subtenant shall not be likely to materially
increase operating expenses or the burden on existing cleaning services, elevators or other services and/or systems of the Building;

 

(v)       In
case of a subletting, the subtenant shall be expressly subject to all of the obligations of Tenant under this Lease and the further
condition and restriction that such sublease shall not be assigned, encumbered or otherwise transferred or the Premises further
sublet by the subtenant in whole or in part, or any part thereof suffered or permitted by the subtenant to be used or occupied
by others, without the prior written consent of Landlord in each instance to the extent

 

    	 	7	 

     

    

 

required
by the terms of this Lease, subject to the provisions of Section 4.01 hereof and compliance with all other applicable provisions
of this Article;

 

(vi)       No
subletting shall end later than one (1) day before the Expiration Date nor shall any subletting be for a term of less than two
(2) years unless (a) Named Tenant (as defined in Article 44.02 of this Lease) occupies fifty (50%) percent or more of the Premises
for the conduct of its business (as opposed to mere lawful possession) in which event no subletting shall be for a term of less
than one (1) year, or (b) such subletting commences less than two (2) years before the expiration of the term hereof;

 

(vii)     Tenant
shall reimburse Landlord on demand for any reasonable costs, including attorneys’ fees and disbursements, that may he incurred
by Landlord in connection with said assignment or sublease (such amount not to exceed $5,000.00 in each instance);

 

(viii)    The
character of the business to be conducted in the Premises by the proposed assignee or subtenant shall not require any alterations,
installations, improvements, additions or other physical changes to be performed, or made to, any portion of the Building or the
Real Property other than the Premises; and

 

(x)        The
proposed assignee or subtenant shall not be any entity which is entitled to diplomatic or sovereign immunity or which is not subject
to service of process in the State of New York or to the jurisdiction of the courts of the State of New York and the United States
located in New York County.

 

Landlord
shall have a period of thirty (30) days from the receipt of such Tenant request for consent for a specific assignment or subletting
to either consent or refuse to consent to such specific assignment or subletting. In the event that Landlord fails to (i) timely
accept or reject a Tenant’s Recapture Offer or terminate this Lease or the applicable portion hereof, in accordance with
Section 4.02 hereof, or (ii) timely consent or refuse to consent to a request from Tenant for consent to such specific assignment
or subletting for the use permitted under this Lease, in accordance with this Section 4.07, then in either of the foregoing instances
same shall not constitute a material default by Landlord under this Lease or entitle Tenant to cancel this Lease or to any set-off
or abatement of Fixed Annual Rent or Additional Rent or to claim or recover any monetary damages whatsoever, and in no event shall
Tenant be entitled to make, nor shall Tenant make, any claim, and Tenant hereby waives any claim, for money damages (nor shall
Tenant claim any money damages by way of set-off, counterclaim or defense) based upon any claim or assertion by Tenant that Landlord
has unreasonably withheld or unreasonably delayed its consent or approval. In
the case of either (i) or (ii), above, provided that Tenant shall have submitted a second (2nd) written request
therefor together with all of the information and documentation set forth in Section 4.06 hereof which expressly refers to this
Section 4.07 and the consequences of Landlord’s failure to respond within five (5) days thereafter, stating in bold, uppercase
letters on the first page thereof: “LANDLORD’S CONSENT TO THE PROPOSED SUBLEASE OR ASSIGNMENT SHALL BE DEEMED GIVEN
IF LANDLORD FAILS TO [ACCEPT OR REJECT TENANT’S RECAPTURE OFFER OR TERMINATE THIS LEASE OR THE APPLICABLE PORTION THEREOF
/ CONSENT TO OR DISAPPROVE OF SUCH PROPOSED SUBLEASE] WITHIN FIVE (5) DAYS

 

    	 	8	 

     

    

 

AFFER
THIS NOTICE SHALL BE DEEMED TO HAVE BEEN GIVEN TO LANDLORD”, and provided further that Landlord continues to fail to
timely consent or refuse to consent as set forth above within said five (5) day period, then Landlord shall be deemed to have
consented to the proposed assignment or sublease, subject to the provisions of this Article.

 

4.08     Any
consent of Landlord under this Article shall be subject to the terms of this Article and conditioned upon there being no default
by Tenant, beyond any grace period, under any of the terms, covenants and conditions of this Lease at the time that Landlord’s
consent to any such subletting or assignment is requested and on the date of the commencement of the term of any proposed sublease
or the effective date of any proposed assignment. Tenant acknowledges and agrees that no assignment or subletting shall be effective
unless and until Tenant, upon receiving any necessary Landlord’s written consent (and unless it was theretofore delivered
to Landlord) causes a duly executed copy of the sublease or assignment to be delivered to Landlord within ten (10) days after
execution thereof. Any such sublease shall provide that the sublessee shall comply with all applicable terms and conditions of
this Lease to be performed by the Tenant hereunder. Any such assignment of this Lease shall contain an assumption by the assignee
of all of the terms, covenants and conditions of this Lease to be performed by the Tenant.

 

4.09.     Anything
hereinabove contained to the contrary notwithstanding, provided that Tenant is not in default under this Lease after notice (in
which event, Tenant’s rights under this Article shall be merely suspended until the earlier of (i) the timely and full cure
of the default alleged in such notice (or any other cure which is accepted by Landlord without consequence to Tenant’s rights
under this Article or which is deemed sufficient and timely by a court of competent jurisdiction), at which time Tenant’s
rights hereunder shall be reinstated, and (ii) the expiration of the time in which to cure such default, at which time Tenant’s
rights hereunder shall be extinguished with respect to the instant transaction in the absence of any other cure which is accepted
by Landlord without consequence to Tenant’s rights under this Article or which is deemed sufficient and timely by a court
of competent jurisdiction), and the “recapture” provisions of this Article shall not apply, Landlord’s consent
shall not be required for a sublease of any portion of the Premises provided however, that: (a) Tenant give Landlord at lease
fourteen (14) days prior notice of such sublease along with (i) the name and address of the sublessee, (ii) a duly executed counterpart
of the proposed agreement of sublease, and (iii) reasonably satisfactory information as to the nature and character of the business
of the sublessee and as to the nature of its proposed use of the space, (b) the subtenant is engaged in a business consistent
with the use permitted under Section 1.02 of this Lease and the portion of the Premises sublet to subtenant will
be used in a manner which (x) is in keeping with the standards of the Building and (y) would not adversely affect or increase
Landlord’s cost in the operation of the Building, and (c) any such sublease complies with any other applicable provisions
of this Article.

 

4.10     If
Landlord shall not have accepted Tenant’s Recapture Offer hereunder and Landlord has not elected to terminate this Lease,
and Tenant effects any assignment or subletting, then Tenant thereafter shall pay to Landlord a sum equal to fifty (50%) percent
of (a) any rent or other consideration paid to Tenant by any subtenant with respect to the sublease (after deducting the cost
of Tenant, if any, in effecting the subletting or assignment, for reasonable alteration costs, advertising expenses, brokerage
commissions, reasonable rent concessions and legal fees) which is in

 

    	 	9	 

     

    

 

excess of
the rent allocable to the subleased space which is then being paid by Tenant to Landlord pursuant to the terms hereof, and (b)
any other profit or gain realized by Tenant in connection with an assignment or sublease (after deducting the cost of Tenant,
if any, in effecting the subletting or assignment, for reasonable alteration costs, advertising expenses, brokerage commissions,
reasonable rent concessions and legal fees not previously deducted pursuant to subsection “a” above) from any such
subletting or assignment. The foregoing amounts shall be payable to Landlord only if, as and when, the same are received by Tenant
from said assignee or sublessee.

 

4.1 1     In
no event shall Tenant be entitled to make, nor shall Tenant make, any claim, and Tenant hereby waives any claim, for money damages
(nor shall Tenant claim any money damages by way of set-off, counterclaim or defense) based upon any claim or assertion by Tenant
that Landlord has unreasonably withheld or unreasonably delayed its consent or approval to a proposed assignment or subletting
as provided for in this Article. Tenant’s sole remedy shall be an action or proceeding to enforce any such provision, or
for specific performance, injunction or declaratory judgment. In the event that Tenant shall commence any action against Landlord
in order to enforce Tenant’s rights under this Lease (provided that Tenant does not seek to remove and consolidate with
such action any summary proceeding commenced by Landlord), and should Tenant prevail and obtain a final, non-appealable order,
judgment or award on the merits, Landlord will reimburse Tenant (by means of credit against Fixed Annual
Rent or if there should be insufficient term remaining inthis
Lease or any renewals and extensions in order to exhaust such credit, then the remainder shall be reimbursed by payment) for the
reasonable legal expenses and fees thereby incurred by Tenant. Notwithstanding the foregoing, if a dispute arises between the
parties in connection with the provisions of this Article which
cannot be resolved by negotiation, they shall submit the matter to binding arbitration before the American Arbitration Association
(the “AAA”) or any successor organization, in accordance with the rules, regulations and/or procedures for expedited
proceedings then obtaining of the AAA or such successor organization. The parties shall jointly designate an independent arbitrator
(the “AAA Arbitrator”). In the event that the parties shall be unable to jointly agree on the designation of
the AAA Arbitrator within five (5) days after written request by either party, the parties shall allow the AAA, or any successor
organization, to designate the AAA Arbitrator in accordance with
the rules, regulations and/or procedures for expedited proceedings then obtaining of the AAA or such successor organization. The
arbitration shall be held at New York, New York, on twenty (20) days notice, within seven (7) days of the appointment of the Arbitrator.
The AAA Arbitrator shall conduct such hearings, discovery and investigations as he/she may deem appropriate, provided that they
shall be concluded within thirty (30) days after the date of designation of the AAA Arbitrator. Within ten (10) after the conclusion
thereof, the AAA Arbitrator shall issue a determination. The determination of the arbitrator shall be conclusive and binding upon
the parties and shall be set forth, along and with the AAA Arbitrator’s rationale for such determination, in a written report
delivered to the parties. Each party shall pay its own counsel fees and expenses, if any, in connection with any arbitration under
this Article. The AAA Arbitrator appointed pursuant to this Article shall be an independent real estate construction professional
with at least ten (10) years’ experience in commercial real estate commercial leasing. The AAA Arbitrator shall not have
the power to add to, modify or delete any of the provisions of this Agreement. The sole function of the AAA Arbitrator shall be
to determine whether Landlord has acted reasonably and whether to require Landlord to grant such consent or approval; the AAA
Arbitrator may not award damages or grant any other monetary award or relief.

 

    	 	10	 

     

    

  

4.12        Anything
hereinabove contained to the contrary notwithstanding, the “recapture” provisions of this Article and the provisions
of Section 4.10 hereof shall not apply in connection with, and Landlord’s consent shall not be required for (a) an assignment
of this Lease to a Related Entity, (b) a sublease of all or part of the Premises for the uses permitted hereunder to an Affiliate,
or (c) in connection with a deemed assignment of this Lease resulting from a transfer of a majority of the issued and outstanding
shares of capital stock or ownership interests of Tenant provided that such transfer to a Successor Entity shall be for a legitimate
business purpose and not principally for the purpose of transferring this Lease, and provided further, with respect to both clauses
(a) and (c), to the extent applicable, that: (i) Landlord is given prior notice thereof and reasonably satisfactory proof that
the requirements of this Article 4 (to the extent applicable to the transaction) have been met and Tenant agrees to remain primarily
liable, jointly and severally, with any assignee, for the obligations of Tenant under this Lease and (ii) in Landlord’s
reasonable judgment the proposed assignee or subtenant is engaged in a business and the Premises, or the relevant part thereof,
will be used in a manner which (x) is in keeping with the standards of the Building and (y) would not adversely affect or increase
Landlord’s cost in the operation of the Building, and (iii) Tenant is not in
default under this Lease after notice (in which event, Tenant’s rights under this Article shall be merely suspended
until the earlier of (i) the timely and full cure of the default alleged in such notice (or any other cure which is accepted by
Landlord without consequence to Tenant’s rights under this Article or which is deemed sufficient and timely by a court of
competent jurisdiction), at which time Tenant’s rights hereunder shall be reinstated, and (ii) the expiration of the time
in which to cure such default, at which time Tenant’s rights hereunder shall be extinguished with respect to the instant
transaction in the absence of any other cure which is accepted by Landlord without consequence to Tenant’s rights under
this Article or which is deemed sufficient and timely by a court of competent jurisdiction). The term “Affiliate”
of Tenant shall mean any person, corporation or other entity which is a licensee, client, or business venturer of Tenant, equity
co-venturer with Tenant, or a Related Entity.

 

4.13        For
purposes of this Article:

 

A. a “Related
Entity” shall mean:

 

(x)
a wholly-owned subsidiary of Tenant, the parent entity of Tenant, or any corporation or entity which controls or is controlled
by Tenant or is under common control with Tenant, or

 

(y)
any entity (a “Successor Entity”) (i) to which substantially all or all of the assets or stock of Tenant are
transferred, or (ii) into which Tenant may be merged or consolidated, provided that in either such case both the net worth and
ratio of current assets to current liabilities (exclusive of good will) of such transferee or of the resulting or surviving corporation
or other business entity, as the case may be, as certified by the certified public accountants of such transferee or the resulting
or surviving business entity in accordance with generally accepted accounting principles, consistently applied, is not less than
Tenant’s net worth and ratio of current assets to current liabilities (exclusive of good will), as so certified, as of the
day immediately prior to such transaction and provided also that any such transaction complies with the other provisions of this

 

    	 	11	 

     

    

 

Article; and

 

B.
the term “control” shall mean, in the case of a corporation or other entity, ownership or voting control, directly
or indirectly, of at least fifty (50%) percent of all of the general or other partnership (or similar) interests therein and the
power to determine the actions of such entity.

 

4.14       In
the event of a permitted subletting of one (1) full floor or greater of Premises (or equaling the aggregate of 10,000 square feet
or more) originally demised under this Lease, and provided there shall be no default under this Lease by Tenant or the subtenant
after notice (in which event, Tenant’s rights under this Article shall be merely suspended until the earlier of (i) the
timely and full cure of the default alleged in such notice (or any other cure which is accepted by Landlord without consequence
to Tenant’s rights under this Article or which is deemed sufficient and timely by a court of competent jurisdiction), at
which time Tenant’s rights hereunder shall be reinstated, and (ii) the expiration of the time in which to cure such default,
at which time Tenant’s rights hereunder shall be extinguished with respect to the instant transaction in the absence of
any other cure which is accepted by Landlord or which is deemed sufficient and timely by a court of competent jurisdiction), upon
Tenant’s written request, Landlord shall enter into a so-called “non- disturbance agreement”, in Landlord’s
form, agreeing with such subtenant that so long as subtenant shall not be in default under its sublease after notice and the expiration
of any applicable cure period, subtenant’s possession of the Premises in accordance with the terms and conditions of such
sublease, except as expressly otherwise hereinafter set forth, shall not be disturbed by reason of the termination of this Lease
as a result of the default by Tenant hereunder, provided however that Landlord shall succeed to the interest of Tenant under such
sublease and such subtenant shall attorn to Landlord, and further provided that Landlord shall not be (a) liable for any previous
act or omission or negligence of Tenant (as sublessor) under the sublease, (b) subject to any counterclaim, defense or offset,
which therefore shall have accrued to the subtenant against Tenant (as sublessor), (c) bound by an previous modification or amendment
of the sublease or by any previous prepayment of more than one month’s rent, unless such modification or prepayment shall
have been approved in writing by Landlord, or (d) obligated to perform any repairs or other work beyond Landlord’s obligations
under this Lease. In addition, in the event such subtenant attoms to Landlord pursuant to such non- disturbance agreement, commencing
on the date of such attornment, the fixed rent and additional rent payable by such subtenant under its sublease for each calendar
year (or a portion thereof) during the term of the sublease shall be the greater of (i) the fixed rent and additional rent as
defined in and payable by subtenant pursuant to the terms of its sublease or (ii) the fixed rent and additional rent which would
have been payable by Tenant pursuant to the Lease with respect to the sublet premises had the Lease not been terminated. In addition,
to the extent that the sublease (a) grants to subtenant services or rights in excess of those which would otherwise be available
to Tenant under this Lease if Tenant were leasing directly from Landlord the subleased premises or (b) does not grant to Tenant
(as sublessor) any rights that Landlord has vis-a-vis Tenant under thi s Lease, then such excess services or rights will automatically
cease, and such omitted rights shall be deemed granted to Landlord, in each case if, as and when (and for all periods of the sublease
term from and after the date that) such attornment becomes effective between Landlord and subtenant (and upon such attornment,
the sublease shall, automatically and without further act required on the part of any party, be deemed amended to accomplish the
foregoing provisions of this Section.) 

 

    	 	12	 

     

    

 

ARTICLE
5

 

DEFAULT

 

5.01     Landlord
may terminate this Lease on three (3) days’ notice: (a) if Fixed Annual Rent or Additional Rent is not paid within three
(3) days after written notice from Landlord; or (b) if Tenant shall have failed to cure a default in the performance of any covenant
of this Lease (except the payment of Rent), or any rule or regulation hereinafter set forth, within twenty (20) days after written
notice thereof from Landlord, or if default cannot be completely cured in such time, if Tenant shall not promptly proceed to cure
such default within said twenty (20) days, or shall not complete the curing of such default with due diligence; or (c) when and
to the extent permitted by law, if a petition in bankruptcy shall be filed by or against Tenant or if Tenant shall make a general
assignment for the benefit of creditors, or receive the benefit of any insolvency or reorganization act; or (d) if a receiver
or trustee is appointed for any portion of Tenant’s property and such appointment is not vacated within forty five (45)
days; or (e) if an execution or attachment shall be issued under which the Premises shall be taken or occupied or attempted to
be taken or occupied by anyone other than Tenant; or (f) if the Premises become and remain abandoned for a period of twenty (20)
days for any other reason than by reason of a fire or casualty to the Premises; or (g) if Tenant shall default beyond any grace
period under any other lease between Tenant and Landlord. At the expiration of the three (3) day notice period, this Lease and
any rights of renewal or extension thereof shall terminate as completely as if that were the date originally fixed for the expiration
of the Term of this Lease, but Tenant shall remain liable as hereinafter provided.

 

5.02     In
the event that Tenant is in arrears for Fixed Annual Rent or any item of  Additional Rent, Tenant waives its right, if any, to
designate the items against which payments made by Tenant are to be credited and Landlord may apply any payments made by Tenant
to any items which Landlord in its sole discretion may elect irrespective of any designation by Tenant as to the items against
which any such payment should be credited.

 

5.03     Tenant
shall not seek to remove and/or consolidate any summary proceeding brought by Landlord with any action commenced by Tenant in
connection with this Lease or Tenant’s use and/or occupancy of the Premises.

 

5.04     In
the event of a default by Landlord hereunder, no property or assets of Landlord, or any principals, shareholders, officers, directors,
partners or members of Landlord, whether disclosed or undisclosed, other than the Building in which the Premises are located and
the land upon which the Building is situated, shall be subject to levy, execution or other enforcement procedure for the satisfaction
of Tenant’s remedies under or with respect to this Lease, the relationship of Landlord and Tenant hereunder or Tenant’s
use and occupancy of the Premises.

 

    	 	13	 

     

    

 

ARTICLE
6

 

RELETTING,
ETC.

 

6.01     If
Landlord shall re-enter the Premises after the default of Tenant, after notice and the expiration of the cure period applicable
to such default hereunder, if any, by summary proceedings or otherwise: (a) Landlord may re-let the Premises or any part thereof,
as Tenant’s agent, in the name of Landlord, or otherwise, for a term shorter or longer than the balance of the term of this
Lease, and may grant concessions or free rent; (b) Tenant shall pay Landlord any deficiency between the rent hereby reserved and
the net amount of any rents collected by Landlord for the remaining term of this Lease, through such re-letting. Such deficiency
shall become due and payable monthly, as it is determined. Landlord shall have no obligation to re-let the Premises, and its failure
or refusal to do so, or failure to collect rent on re-letting, shall not affect Tenant’s liability hereunder. In computing
the net amount of rents collected through such re-letting, Landlord may deduct all expenses incurred in obtaining possession or
re-letting the Premises, including legal expenses and fees, brokerage fees for what would have been the remainder of the Term
of the Lease, the cost of restoring the Premises to good order, and the cost of all alterations and decorations deemed necessary
by Landlord to effect re-letting. In no event shall Tenant be entitled to a credit or repayment for rerental income which exceeds
the sums payable by Tenant hereunder or which covers a period after the original term of this Lease; (c) Tenant hereby expressly
waives any right of redemption granted by any present or future law. “Re-enter” and “re-entry” as used
in this Lease are not restricted to their technical legal meaning. In the event of a breach or threatened breach of any of the
covenants or provisions hereof, Landlord shall have the right of injunctive relief. Mention herein of any particular remedy shall
not preclude Landlord from any other available remedy; (d) Landlord shall recover as liquidated damages, in addition to accrued
rent and other charges, if Landlord’s re-entry is the result of Tenant’s bankruptcy, insolvency, or reorganization,
the full rental for the maximum period allowed by any act relating to bankruptcy, insolvency or reorganization.

 

6.02     If
Landlord re-enters the Premises for any cause, or if Tenant abandons the Premises and Lease is terminated as aforesaid, or after
the expiration of the term of this Lease, any property left in the Premises by Tenant shall be deemed to have been abandoned by
Tenant, and Landlord shall have the right to retain or dispose of such property in any manner without any obligation to account
therefor to Tenant. If Tenant shall at any time default hereunder, and if Landlord shall undertake any lawful acts in order to
enforce this Lease based upon such default, then Tenant will reimburse Landlord upon demand as Additional Rent, for all costs,
expenses and fees (including, without limitation, reasonable attorneys’ fees) thereby incurred by Landlord. In the event
that Tenant shall commence any action against Landlord in order to enforce Tenant’s rights under this Lease (provided that
Tenant does not seek to remove and consolidate with such action any summary proceeding commenced by Landlord) or successfully
defend an action commenced by Landlord, and should Tenant prevail and obtain a final, non-appealable order, judgment or award
on the merits, Landlord will reimburse Tenant (by means of credit against Fixed Annual Rent or if there should be insufficient
term remaining in this Lease or any renewals and extensions in order to exhaust such credit, then the remainder shall be reimbursed
by payment) for the reasonable legal expenses and fees thereby incurred by Tenant.

 

    	 	14	 

     

    

 

ARTICLE
7

 

LANDLORD
MAY CURE DEFAULTS

 

7.01     If
Tenant shall default in performing any covenant or condition of this Lease, after any required notice is given to Tenant and expiration
of the grace period applicable to such default hereunder, if any, (provided, however, that notice under this Article shall not
be required in the event of an imminent danger to health or safety or in the event that the failure to promptly remedy such default
may result in potential criminal or other liability or a default by Landlord under a mortgage, ground lease or other agreement,
however Landlord shall use reasonable efforts to provide oral notice where reasonably practicable), Landlord may perform the same
for the account of Tenant, and if Landlord, in connection therewith, or in connection with any default by Tenant, makes any expenditures
or incurs any obligations for the payment of money, including but not limited to reasonable attorney’s fees, such sums so
paid or obligations incurred shall be deemed to be Additional Rent hereunder, and shall be paid by Tenant to Landlord within five
(5) days of rendition of any bill or statement therefor, and if Tenant’s lease term shall have expired at the time of the
making of such expenditures or incurring of such obligations, such sums shall be recoverable by Landlord as damages.

 

ARTICLES
8

 

ALTERATIONS

 

8.01     Tenant
shall make no structural decoration, alteration, addition or improvement (“Structural Alterations”) in the
Premises, without the prior written consent of Landlord, which consent shall not be unreasonably withheld or delayed, and then
only by contractors or mechanics and in such manner and time, and with such materials consistent with the quality of the Building,
as approved by Landlord. Notwithstanding the foregoing, and subject to all of the other provisions of this Article 8, Landlord’s
approval shall not be required for Tenant’s contractors employing union labor with the proper jurisdictional qualifications
provided, however, that (i) all work affecting the Building’s “Class E” system shall be performed by Landlord’s
designated contractor and all plan filings with the Department of Buildings shall be performed by landlord’s designated
expeditor, provided that the prices charged by said contractor and/or expeditor are reasonably comparable to the prices customarily
charged by other reputable contractors and/or expeditor, as the case may be, performing the same work in Midtown Manhattan, and
(ii) Landlord has the right to revoke such approval in the event that hereinafter there occurs any negative experience with such
contractors or licensed professionals(in that they:(i) fail to prosecute work in a manner consistent with good business or trade
practice, or (ii) conduct themselves in an unprofessional or disreputable manner in or about the Building) or Landlord has reasonable
concerns regarding the financial stability of, or any criminal proceedings pending against, any such contractors or licensed professionals.
All alterations, additions or improvements to the Premises, including air-conditioning equipment and duct work, except movable
office furniture and trade equipment installed at the expense of Tenant, shall, unless Landlord elects otherwise in writing, become
the property of Landlord, and shall be surrendered with the Premises, at the expiration or sooner termination of the Term. Landlord
shall promptly review plans submitted for Landlord’s approval

 

    	 	15	 

     

    

 

under this
Article and shall notify Tenant of Landlord’s approval thereof or disapproval (stating with reasonable specificity the reasons
for any such disapproval) within (i) thirty (30) days following the submission by Tenant of fully coordinated plans and specifications
therefor and (ii) within ten (10) days following a resubmission of plans by Tenant hereunder; provided that, in connection with
any Alteration (as hereinafter defined), costing more than $50,000.00, Tenant shall, as soon as reasonably practical, have given
Landlord prior notice of its intent to prepare plans for such Alterations. Any such alterations, additions and improvements which
Landlord shall designate shall be removed by Tenant and any damage repaired, at Tenant’s expense, prior to the expiration
of this Lease. Notwithstanding anything contained in this Lease to the contrary, Tenant shall not be obligated to remove any Alterations
(as hereinafter defined) hereinafter performed in or to the Premises except for Specialty Alterations and Tenant shall not be
obligated to remove any existing Alterations currently in or to the Premises as of the date hereof, except as provided in Articles
44 and 56 herein. For purposes of this Section 8.01, “Specialty Alterations” shall mean Alterations consisting
of kitchens, pantries, executive bathrooms, raised computer floors, server rooms, vaults, libraries, filing systems, internal
staircases, dumbwaiters, pneumatic tubes, vertical and horizontal transportation systems, any Alterations which are structural
in nature or penetrate or otherwise affects any floor slab, and other Alterations of a similar character which are not customary
for general office use in non-institutional office buildings in midtown Manhattan. Tenant shall, at Tenant’s cost and expense,
remove any such Specialty Alteration so designated by Landlord, repair any damage to the Premises or the Building due to such
removal, cap all electrical, plumbing and waste disposal lines in accordance with sound construction practice and restore the
portion of the Premises effected by such removal to the condition existing prior to the making of such Specialty Alteration, reasonable
wear and tear and damage from casualty excepted. All such work shall be performed in accordance with plans and specifications
first approved by Landlord, such approval not to be unreasonably withheld or delayed, and all applicable terms, covenants, and
conditions of this Lease. If the Landlord’s insurance premiums
increase as a result of any Specialty Alterations, Tenant shall pay each such increase each year as Additional Rent within thirty
(30) days after receipt of a bill therefore from Landlord. Landlord shall designate an Alteration to be a Specialty Alteration
at the time that consent to such Specialty Alteration is given by Landlord, provided that Tenant attaches, as part of its request
for such consent, a separate written notice specifically referencing this Section and advising Landlord that Landlord is required
to make such designation as part of any such consent given by Landlord hereunder or be deemed to. have waived its right to have
such Alteration removed by Tenant at the expiration or sooner termination of the Term. Notwithstanding anything to the contrary
contained herein, Tenant shall close any passageways created by Tenant between the Premises and the 250 Building (as defined herein)
in accordance with good construction practices in accordance with all applicable provisions of this Lease and repair any damage
to the Premises and the Building arising from the closure of such passageways on or before the Expiration Date.

 

8.02     Notwithstanding
anything contained herein to the contrary, Tenant shall not be required to obtain Landlord ’s prior written consent or approval
for any nonstructural, purely decorative, or interior improvements or alterations (“Non-Structural Alterations”;
all Non-Structural Alterations, Structural Alterations, and Specialty Alterations are collectively referred as “Alterations”)
to the Premises (including painting, carpeting or the installation of wall coverings) provided, however that said Non-Structural
Alterations do not consist of changes or modifications affecting any Building plumbing, electrical, air conditioning, utility
services or other Building wide

 

    	 	16	 

     

    

 

systems,
do not require the issuance of a building permit, and are not visible from outside the Premises, and comply with all applicable
provisions of this Lease. All Alterations shall be performed in accordance with the following conditions:

 

(i)       Prior
to the commencement of any Structural Alterations and Specialty Alterations, Tenant shall first submit to Landlord for its approval
detailed dimensioned coordinated plans and specifications, including layout, architectural, mechanical, electrical, plumbing and
structural drawings therefore (the “Plans”). Landlord shall be give, in writing, a good description of all
other Alterations and Plans with respect to Non-Structural Alterations requiring a building permit or costing in excess of $75,000.00.

 

(ii)      All
Alterations in and to the Premises shall be performed in a good and workmanlike manner and in accordance with the Building’s
rules and regulations governing Tenant Alterations. Prior to the commencement of any such Alterations, Tenant shall, at its sole
cost and expense, obtain and exhibit to Landlord any governmental permit required in connection with such Alterations.

 

(iii)     All
Alterations shall be done in compliance with all other applicable provisions of this Lease and with all applicable laws, ordinances,
directions, rules and regulations of governmental authorities having jurisdiction, including, without limitation, the Americans
with Disabilities Act of 1990 and New York City Local Law No. 57/87 and similar present or future laws, and regulations issued
pursuant thereto, and also New York City Local Law No. 76 and similar present or future laws, and regulations issued pursuant
thereto, on abatement, storage, transportation and disposal of asbestos and other hazardous materials, which work, if required,
shall be effected at Tenant’s sole cost and expense, and in strict compliance with the aforesaid rules and regulations which
Landlord will enforce in a non-discriminatory manner to all Tenants in the Building. Notwithstanding anything to the contrary
contained in this Lease, in the event of the existence of any deteriorated asbestos or deteriorated asbestos-containing material
(collectively, “ACM”) within the Premises, Landlord shall be responsible for the cost of removing, enclosing,
encapsulating or otherwise managing such ACM to the extent required by applicable law; provided, however, that to the extent that
Tenant has (i) disturbed such ACM, (ii) caused such ACM to become friable by the performance of any work or alterations in the
Premises including, without limitation, any initial alterations performed by Tenant or (iii) installed such ACM, then Tenant shall
remove, enclose, encapsulate or otherwise manage such ACM as required by applicable law at its sole cost and expense.

 

(iv)     Tenant
shall not at any time, either directly or indirectly, use any contractors or labor or materials in the Premises if the use of
same would create any difficulty with other contractors or labor engaged by Tenant or Landlord or others in the construction,
maintenance or operation of the Building or any part thereof.

 

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

 

    	 	17	 

     

    

 

(vi)     Prior
to the commencement of any work by or for Tenant, Tenant shall furnish to Landlord certificates evidencing the existence of the
following insurance:

 

(a)     Workmen’s
compensation insurance covering all persons employed for such work and with respect to whom death or bodily injury claims could
be asserted against Landlord, Tenant or the Premises.

 

(b)     Broad
form general li ability insurance written on an occurrence basis naming Tenant as an insured and naming Landlord and its designees
as additional insureds, with limits of not less than $3,000,000 combined single limit for personal injury in any one occurrence,
and with limits of not less than $500,000 for property damage (the foregoing limits may be revised from time to time by Landlord
to such higher limits as Landlord from time to time reasonably requires). Tenant, at its sole cost and expense, shall cause all
such insurance to be maintained at all time when the work to be performed for or by Tenant is in progress. All such insurance
shall be obtained from a company authorized to do business in New York and shall provide that it cannot be canceled without thirty
(30) days prior written notice to Landlord. All polices, or certificates therefor, issued by the insurer and bearing notations
evidencing the payment of premiums, shall be delivered to Landlord. Blanket coverage shall be acceptable, provided that coverage
meeting the requirements of this paragraph is assigned to Tenant’s location at the Premises.

 

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

 

(viii)       Tenant
agrees to employ the building consultant as Landlord shall, from time to time designate (the “Building Consultant”)
in connection with any and all filings, approvals, permits, licenses and consents issued or required to be made with or obtained
from any and all governmental agencies or authorities in conjunction with any and all Alterations to the Premises or the Building
which Tenant intends to perform or performs to the Premises, the Building or any part thereof (collectively, “Tenant
Alterations”), provided that the prices charged and scope of services offered by the Building Consultant are comparable
to those customarily charged and offered by other reputable New York City building consultants offering similar services in midtown
Manhattan, or other comparable reputable consultants, only after consultation and coordination with Landlord’s Building
Consultant and provided that Tenant addresses, to the reasonable satisfaction of Landlord’s Building Consultant, any concerns
raised by Landlord’s Building Consultant with regard to the effect of any such filings, approvals, permits, licenses and
consents in connection therewith and Tenant pay to Landlord, as Additional Rent within twenty (20) days of demand, all reasonable
costs, fees and expenses incurred by Landlord to Landlord’s Building Consultant in connection therewith. Tenant agrees that
other than the Building Consultant, it shall not employ any other building consultant, nor any individual, firm or organization
for such purpose, without Landlord’s prior written consent, in each instance which consent shall not be unreasonably withheld
or delayed provided however that Landlord’s previous experience with such consultant, and concerns regarding the financial
stability of, and any criminal proceedings currently or previously pending against, a contractor or mechanic may form a basis
upon which Landlord may withhold its consent.

 

(ix)         The
review and/or approval by Landlord, its agents, consultants and/or

 

    	 	18	 

     

    

 

contractors,
of any Alteration or of plans and specifications therefor and the coordination of such Alteration work with the Building, as described
in part above, are solely for the benefit of Landlord, and neither Landlord nor any of its agents, consultants or contractors
shall have any duty toward Tenant; nor shall Landlord or any of its agents, consultants and/or contractors be deemed to have made
any representation or warranty to Tenant, or have any liability, with respect to the safety, adequacy, correctness, efficiency
or compliance with laws of any plans and specifications, Alterations or any other matter relating thereto.

 

(x)           Promptly
following the substantial completion of any Alterations for which Plans were prepared, Tenant shall submit to Landlord: (a) one
(1) sepia and one (1) copy on floppy disk (using a current version of Autocad or such other similar software as is then commonly
in use) of final, “as-built” plans for the Premises showing all
such Alterations and demonstrating that such Alterations were performed substantially in accordance with plans and specifications
first approved by Landlord and (b) an itemization of Tenant’s total construction costs, detailed by contractor, subcontractors,
vendors and materialmen; bills, receipts, lien waivers and releases from all contractors, subcontractors, vendors and materialmen;
architects’ and Tenant’s certification of completion, payment and acceptance, and all governmental approvals and confirmations
of completion for such Alterations.

 

ARTICLE
9

 

LIENS

 

9.01        With
respect to contractors, subcontractors, materialmen and laborers, and architects, engineers and designers, for all work or
materials for a single project having a cost of $100,000 or more, or projects being performed simultaneously which in the
aggregate cost $100,000 or more to be furnished to Tenant at the Premises, Tenant agrees to obtain and deliver to Landlord
written and unconditional waiver of mechanics liens upon the Premises or the Building after payments to the contractors,
etc., subject to any then applicable provisions of the Lien Law. Notwithstanding the foregoing, Tenant at its expense shall
cause any lien filed against the Premises or the Building, for work or materials claimed to have been furnished to Tenant, to
be discharged of record within fourteen (14) days after notice thereof.

 

ARTICLE
10

 

REPAIRS

 

10.01       Tenant
shall take good care of the Premises and the fixtures and appurtenances therein, and shall make all non-structural repairs necessary
to keep them in good working order and condition (except where such repair is necessitate by Landlord’s negligence or willful
misconduct), including structural repairs when those are necessitated by the act, omission or negligence of Tenant or its agents,
employees, invitees or contractors, subject to the provisions of Article 11 hereof. During the term of this Lease, Tenant may
have the exclusive use of any air-conditioning equipment

 

    	 	19	 

     

    

 

servicing
the Premises, subject to the provisions of Article 35 of this Lease, and shall pay, in accordance with Article 41 of this Lease,
for electricity consumed by the equipment. ·the exterior walls and roofs of the Building, the mechanical rooms, service
closets, shafts, areas above any hung ceiling and the windows and the portions of all window sills outside same are not part of
the Premises demised by this Lease, and Landlord hereby reserves all rights to such parts of the Building. Tenant shall not paint,
alter, drill into or otherwise change the appearance of the windows including, without limitation, the sills, jambs, frames, sashes,
and meeting rails. Notwithstanding the foregoing, Tenant shall, at its sole cost and expense, maintain and repair, in good working
order and condition, the cooling tower installed by Tenant pursuant to Article 55 and all other Building Systems installed in
the Building by Tenant.

 

10.02    Landlord
shall, at its sole cost and expense, in a first class manner, maintain and repair the roof, foundation, the common and public
areas and structural portions of the Building, the elevator systems, the air-conditioning equipment servicing the 3rd
Floor Premises for the period prior to the 3rd Floor Commencement Date, the air-conditioning equipment servicing the
lobby of the Building (the “Lobby HVAC”) and the plumbing, mechanical and electrical equipment and risers to
the extent located outside of the Premises and not installed by Tenant (collectively, the “Building Systems”);
provided however, that (a) repairs to the distribution portions of the Building Systems located within and serving the Premises
shall be performed by Tenant at its sole cost and expense, and except where the need for such maintenance or repairs is caused
by (i) the negligence or willful misconduct of Tenant, its members, partners, directors, officers, employees, representatives,
· servants, invitees, permitted subtenant or permitted licensees, or (ii) a default by Tenant under the terms of this Lease,
in either of which events such maintenance and repair shall be performed at. Tenant’s cost and expense, payable upon demand
as Additional Rent hereunder. Landlord shall use reasonable diligence to pursue repairs to the roof and building façade
to correct the conditions causing the existing leaks in the Premises.

 

10.03    In
the event that(i) Landlord shall fail to timely perform any repair required to be performed, or deliver any service required to
be delivered to the Premises pursuant to the provisions of this Lease, and (ii) Tenant shall notify Landlord in writing of such
failure, and (iii) such failure shall continue for a period of thirty (30) days after Landlord’s receipt of notice (or,
in the event of an emergency (“Critical Repair Items”), within twenty four (24) hours), or, if such observance
or performance cannot be reasonably had within such thirty (30) day period, Landlord has not in good faith commenced such observance
or performance within said thirty (30) day period and diligently prosecuted same thereafter, and (iv) such failure by Landlord
shall persist for five (5) business days after receipt by Landlord of a second (2nd) notice in writing from Tenant notifying Landlord
of the continued existence of said failure (provided that no such second notice is required in the case of Critical Repair Items),
or if such observance or performance cannot be reasonably had within such five (5) business day period, Landlord has not in good
faith commenced such observance or performance within said five (5) business day period and diligently prosecuted same thereafter;
then Tenant may immediately or at any time thereafter and without further notice perform such repairs or such service (“Tenant’s
Self-Help Right”) provided, however, that such performance involves or affects only facilities, systems, risers or portions
of the Building located within or exclusively servicing the Premises (i.e., the HVAC System), but shall exclude repairs to the
Building Systems outside the Premises, structural portions of the Building (i.e., the roof, foundation and load

 

    	 	20	 

     

    

 

bearing
walls) and the elevator systems Tenant shall have the right to send an invoice to Landlord for the amount of any reasonable, out-of-pocket
costs paid by Tenant in performing the obligations of Landlord pursuant to this Article. In the event Landlord fails to credit
the amount of such invoice against the next accruing installment(s) of Fixed Annual Rent under this Lease within thirty (30) days
of receipt of same, then Landlord shall be deemed to dispute the validity and amount of such invoice and Tenant shall have the
right to submit such dispute to arbitration before the AAA or any successor thereto. If (a) such arbitration shall result in the
rendering of a final judgment for a sum of money against Landlord, and Landlord shall fail to have such judgment vacated or the
enforcement thereof stayed by a court of competent jurisdiction after final appeal, or (b) Landlord shall not dispute such invoice
from Tenant, Landlord shall pay the amount of such invoice to Tenant by credit against the next accruing installment(s) of Fixed
Annual Rent under this Lease, within thirty (30) days after (a) receipt of notice from Tenant in the case of (i), above or (b)
receipt of such invoice from Tenant in the case of (ii), above. Notwithstanding anything to the contrary contained in this Article,
Tenant shall not be entitled to exercise Tenant’s Self-Help Right and to require Landlord to repay to Tenant the costs incurred
in connection therewith in the event that Landlord’s failure to make a repair or to provide a service required hereunder
results from (i) any installation, alteration or improvement which was not performed by Tenant in accordance with the provisions
of this Lease; or (ii) Tenant’s default under the provisions of this Lease; or (iii) the negligence or willful misconduct
of Tenant; or (iv) any other reason beyond the reasonable control of Landlord.

 

ARTICLE
11

 

FIRE
OR OTHER CASUALTY

 

11.01    Damage
by fire or other casualty to the Building and to the core and shell of the Premises (excluding the tenant improvements and betterments
and Tenant’s personal property) shall be repaired at the expense of Landlord (“Landlord’s Restoration Work”),
with reasonable diligence, but without prejudice to the rights of subrogation, if any, of Landlord’s insurer to the extent
not waived herein. Landlord shall not be required to repair or restore any of Tenant’s property or any alteration, installation
or leasehold improvement made in and/or to the Premises. If, as a result of such damage to the Building or to the core and shell
of the Premises, the Premises are rendered untenantable, the Rent shall abate in proportion to the portion of the Premises not
usable by Tenant from the date of such fire or other casualty until Landlord’s Restoration Work is substantially completed.
Landlord shall not be liable to Tenant for any delay in performing Landlord’s Restoration Work, Tenant’s sole remedy
being the right to an abatement of Rent, as provided above. Tenant shall cooperate with Landlord in connection with the performance
by Landlord of Landlord’s Restoration Work. If the Premises are rendered wholly untenantable by fire or other casualty and
if Landlord shall decide not to restore the Premises, or if the Building shall be so damaged that Landlord shall decide to demolish
it or not to rebuild it (whether or not the Premises have been damaged), Landlord may within ninety (90) days after such fire
or other cause give written notice to Tenant of its election that the term of this Lease shall automatically expire no less than
ten (10) days after such notice is given. Notwithstanding the foregoing, each party shall look first to any insurance in its favor
before making any claim against the other party for recovery for loss or damage resulting from fire or other casualty, and to
the extent that such insurance is in force and collectible and to the

 

    	 	21	 

     

    

 

extent permitted
by law, Landlord and Tenant each hereby releases and waives all right of recovery against the other or any one claiming through
or under each of them by way of subrogation or otherwise. The foregoing release and waiver shall be in force only if both releasors’
insurance policies contain a clause providing that such a release or waiver shall not invalidate the insurance and also, provided
that such a policy can be obtained without additional premiums. Tenant hereby expressly waives the provisions of Section 227 of
the Real Property Law and agrees that the foregoing provisions of this Article shall govern and control in lieu thereof

 

11.02    In
the event that the Premises has been damaged or destroyed and this Lease has not been terminated in accordance with the provisions
of this Article, Tenant shall (i) cooperate with Landlord in the restoration of the Premises and shall remove from the Premises
as promptly as reasonably possible all of Tenant’s salvageable inventory, movable equipment, furniture and other property
and (ii) repair the damage to the tenant improvements and betterments and Tenant’s personal property and restore the Premises
with reasonable diligence following the date upon which the core and shell of the Premises shall have been substantially repaired
by Landlord.

 

11.03    In
the event that any portion of the Premises constituting at least one (1) full floor of the Building or greater (the
“Untenantable Casualty Space”) is rendered wholly untenantable due to fire or other casualty and Landlord
has not substantially restored the core and shell of the Untenantable Casualty Space and access thereto excluding, without
limitation, any alterations, improvements or betterments installed by Tenant in and to the Untenantable Casualty Space and
any personal property, within one hundred and eighty (180) days after such fire or casualty subject to causes beyond the
reasonable control of Landlord then, and in such event, Tenant may elect to cancel this Lease only and to the extent that it
pertains to the Untenantable Casualty Space, upon written notice to Landlord within sixty (60) days after the end of such one
hundred and eighty (180) day period and the term of this Lease, only and to the extent it pertains to the Untenantable
Casualty Space, shall expire on the date set forth therein which shall be not less than thirty (30) days after the date such
notice is given (the “Cancellation Date”) provided that Landlord does not substantially restore the core
and shell of the Untenantable Casualty Space prior to the Cancellation Date and provided further that Tenant surrenders to
Landlord possession of the Untenantable Casualty Space on or before the Cancellation Date in the condition required by this
Lease as if the Cancellation Date were the Expiration Date, in which event Tenant shall remain liable for any and all
obligations under this Lease through the date of such fire or other casualty and the representations, covenants and
warranties of Article 40 of this Lease (Brokerage & Indemnification) shall survive any such cancellation, as well as any
other provisions of this Lease which, by their terms, survive cancellation.

 

11.04    For
purposes of this Section 11.04, a “Major Casualty” shall mean damage or destruction (i) to the core and shell
of all or substantially all (i.e., more than eighty-five (85%) percent) of the Premises or (ii) the Building to the extent that
Tenant’s access to the all or substantially all of the Premises has been substantially impaired. Provided that Landlord
does not elect to terminate this Lease in accordance with the provisions of this Article, in the event of a Major Casualty, if
there has been substantial damage or destruction to the Building or the Premises and: (i) Landlord shall not have substantially
restored Tenant’s access to the Premises and substantially completed the making of the required repairs to the core and
shell of the Premises within twelve (12) months from the date of such Major Casualty, or within such period after such date (not
exceeding

 

    	 	22	 

     

    

 

three (3)
months) as shall equal the aggregate period Landlord may have been delayed in doing so by reasons of Force Majeure (defined
below) or (ii) the estimated time by Landlord to restore Tenant’s access to the Premises and substantially completed the
making of the required repairs to the core and shell of the Premises is more than twelve (12) months after the occurrence of such
Major Casualty, then, and in such event, Tenant may elect to terminate
this Lease upon giving written notice to Landlord within thirty (30) days after the end of such twelve (12) month period, and
as the same may be extended in accordance with the provisions
hereof, and the term of this Lease shall expire on the date set forth therein which shall be not less than thirty (30) days after
the date such notice is given (the “Cancellation Date”) provided that Landlord does not substantially complete
the required repairs to the Building or to the core and shell of the Premises, as the case may be, prior to the Cancellation Date.
For purposes of this Article, “Force Majeure” shall mean the inability of Landlord to perform an obligation accruing
under this Article by reason of accidents, strikes, the inability to secure a proper supply of fuel, gas, steam, water, electricity,
labor or supplies, governmental restrictions, regulations or controls or by reason of any other similar cause beyond the reasonable
control of Landlord.

 

ARTICLE
12

 

END
OF TERM

 

12.01    Tenant
shall surrender the Premises to Landlord at the expiration or sooner termination of this Lease in good order and condition, except
for reasonable wear and tear and damage by fire or other casualty, and Tenant shall remove all of its property. Tenant agrees
it shall indemnify and save Landlord harmless against all costs, claims, loss or liability resulting from delay by Tenant in so
surrendering the Premises, including, without limitation, any claims made by any succeeding tenant founded on such delay. The
parties recognize and agree that the damage to Landlord resulting from any failure by Tenant timely to surrender the Premises
will be substantial, will exceed the amount of monthly Rent theretofore payable hereunder, and will be impossible of accurate
measurement. Tenant therefore agrees that if possession of the Premises is not surrendered to Landlord on the Expiration Date
or sooner termination of the Term of this Lease, then Tenant will pay Landlord as liquidated damages for each month and for each
portion of any month during which Tenant holds over in the Premises after expiration or termination of the Term of this Lease,
a sum equal one and one-half (1.5) times the average Rent and Additional Rent which was payable per month under this
Lease during the last six months of the Term thereof for the first ninety (90) days of such holdover and thereafter time
(2) times the average Rent and Additional Rent. Tenant shall also pay all Additional Rent as incurred in the normal course of
operations under the Lease. Tenant shall not be responsible for any consequential damages to Landlord unless Tenant holds over
in the Premises for a period of in excess of thirty (30) days.
The aforesaid obligations shall survive the expiration or sooner termination of the Term of this Lease. At any time during the
Term of this Lease, during business hours upon reasonable advance notice to Tenant (which may be given in person or by telephone),
Landlord may exhibit the Premises to prospective purchasers or mortgagees of Landlord’s interest therein. During the last
year of the Term, Landlord may exhibit the Premises · to prospective tenants.

 

    	 	23	 

     

    

 

ARTICLE
13

 

SUBORDINATION
AND ESTOPPEL, ETC.

 

13.01      Subject
to the terms of this Article 13, this Lease, and all rights of Tenant hereunder, are, and shall continue to be, subject and subordinate
in all respects to:

 

(1)       all
ground leases, overriding leases and underlying leases of the land and/or the building now or hereafter existing (provided however,
Landlord hereby represents to Tenant that, as of the date of this Lease, Landlord’s interest in the Premises is that of
fee owner);

 

(2)       all
mortgages that may now or hereafter affect the land, the Building and/or any of such leases, whether or not such mortgages shall
also cover other lands and/or buildings;

 

(3)       each
and every advance made or hereafter to be made under such mortgages;

 

(4)       all
renewals, modifications, replacements and extensions of such leases and such mortgages; and

 

(5)       all
spreaders and consolidations of such mortgages.

 

13.02     The
provisions of Section 13.01 of this Article shall be self-operative, and no further instrument of subordination shall be required.
In confirmation of such subordination, Tenant shall execute and deliver any instrument that Landlord, the lessor of any such lease,
the holder of any mortgage or any of its successors in interest shall reasonably request (and Tenant reasonably approves, such
approval not to be unreasonably withhold, conditioned or delayed) to evidence such subordination in the event that Tenant shall
fail to execute and deliver any such instrument within ten (10) days after request therefor, and continues to fail to do so within
ten (10) days of a second request by Landlord, then such failure shall constitute a material default by Tenant and, further, both
Landlord and any designee of Landlord shall be entitled to rely on Tenant’s silence as indication that this Lease is subordinate
to any and all such leases and mortgages. The leases to which this Lease is, at the time referred to, subject and subordinate
pursuant to this Article 13 are herein sometimes called “superior leases”, the mortgages to which this Lease is, at
the time referred to, subject and subordinate are herein sometimes called “superior mortgages”, the lessor of a superior
lease or its successor in interest at the time referred to is sometimes herein called a “lessor” and the mortgagee
under a superior mortgage or its successor in interest at the time referred to is sometimes herein called a “mortgagee”.

 

13.03     In
the event of any act -or omission of Landlord that would give Tenant the right, immediately or after lapse of a period of time,
to cancel or terminate this Lease, or to claim a

 

    	 	24	 

     

    

 

partial
or total eviction, Tenant shall not exercise such right (unless pursuant to an express provision in the Lease (e.g., casualty
or condemnation) until:

 

(i)     it
has given written notice of such act or omission to the mortgagee of each superior mortgage and the lessor of such superior lease
whose name and address shall previously have been furnished to Tenant; and

 

(ii)    a
reasonable period for remedying such act or omission shall have elapsed following the giving of such notice and following the
time when such mortgagee or lessor shall have obtained possession of the Premises and become · entitled under such superior
mortgage or superior lease, as the case may be, to remedy the same (which reasonable period shall in no event be less than the
period to which Landlord would be entitled under this Lease or otherwise, after similar notice, to effect such remedy or more
than thirty (30) days after notice to such mortgagee or lessor). Nothing contained herein shall obligate such lessor or mortgagee
to remedy such act or omission.

 

13.04     If
the lessor of a superior lease or the mortgagee of a superior mortgage shall succeed to the rights of Landlord under this Lease,
whether through possession or foreclosure action or delivery of a new lease or deed, then, at the request of such party so succeeding
to Landlord’s rights (hereinafter sometimes called a “successor landlord”), and upon such successor landlord’s
written agreement to accept Tenant’s attornment, Tenant shall attorn to and recognize such successor landlord as Tenant’s
landlord under this Lease, and shall promptly execute and deliver any instrument that such successor landlord may reasonably request
to evidence such attornment. Upon such attornment this Lease shall continue in full force and effect as, or as if it were, a direct
lease between such successor landlord and Tenant upon all of the terms, conditions and covenants as are set forth in this Lease
and shall be applicable after such attornment, except that such successor landlord shall not be subject to any offset (except
any rent offsets or credits expressly provided in this Lease or
awarded by a court, arbitrator or other dispute resolution mechanism, if any) or liable for any previous act or omission of Landlord
under this Lease.

 

13.05     If,
in connection with obtaining financing or refinancing for the Building, a banking, insurance, or other lender shall request reasonable
modifications to this Lease as a condition to such financing or refinancing, Tenant shall not unreasonably withhold, delay, or
defer its consent thereto, provided that such modifications do not materially increase the obligation, materially decrease the
rights, or increase the monetary obligations, of Tenant hereunder. In no event shall a requested modification of this Lease requiring
Tenant to perform the following be deemed to adversely affect the leasehold interest hereby created:

 

(i)     give
notice of any default by Landlord under this Lease to such lender and/or permit the curing of such defaults by such lender; and

 

(ii)    obtain
such lender’s consent for any modification of this Lease.

 

    	 	25	 

     

    

 

13.06     This
Lease may not be modified or amended so as to reduce the Rent, shorten the term, or otherwise materially affect the rights of
Landlord hereunder, or be canceled or surrendered, without the prior written consent in each instance of the ground lessors and
of any mortgagees whose mortgages shall require such consent. Any such modification, agreement, cancellation or surrender made
without such prior written consent shall be null and void as to such lessor or mortgagee.

 

13.07     Subject
to the provisions of any SNDA Agreement (as defined in Section 13.09, below) obtained by Landlord in favor of Tenant and executed
and delivered by all parties thereto, Tenant agrees that if this Lease terminates, expires or is canceled for any reason or by
any means whatsoever by reason of a default under a ground lease or mortgage, and the ground lessor or mortgagee so elects by
written notice to Tenant, this Lease shall automatically be reinstated for the balance of the term which would have remained but
for such termination, expiration or cancellation, at the same rental, and upon the same agreements, covenants, conditions, restrictions
and provisions herein contained, with the same rental, and upon the same agreements, covenants, conditions, restrictions and provisions
herein contained, with the same force and effect as if no such termination, expiration or cancellation had taken place. Tenant
covenants to execute and deliver any instrument required to confirm the validity of the foregoing.

 

13.08     From
time to time, Tenant, on at least ten (10) business days’ prior written request by Landlord, shall deliver to Landlord a
statement (“Estoppel Certificate”) in writing certifying that this Lease is unmodified and in full force and
effect (or if there shall have been modifications, that the same is in full force and effect as modified and stating the modifications)
and the dates to which the Rent and other charges have been paid and stating whether or not Landlord is in default in performance
of any covenant, agreement or condition contained in this Lease and, if so, specifying each such default. Not more frequently
than twice during each year of the Term hereof, Landlord, on at least ten (10) days’ prior written request by Tenant, shall
deliver to Tenant an Estoppel Certificate with respect to the Lease and the status of Tenant’s performance thereunder.

 

13.09     A.
For purposes hereof: (i) ground leases and the mortgages are sometimes hereinafter referred to individually as a “Senior
Interest” and collectively as the “Senior Interests”, and (ii) ground lessors, ground lessees and
mortgagees are sometimes hereinafter referred to individually as a “Senior Interest Holder” and collectively
as the “Senior Interest Holders”.

 

B.  Notwithstanding
anything to the contrary contained in this Lease, upon execution and delivery of this Lease by Landlord and by Tenant, Landlord
shall obtain for the benefit of, and deliver to, Tenant a subordination, attornment and non-disturbance agreement (an “SNDA
Agreement”) with each of the Senior Interest Holders in the form annexed hereto and made a part hereof as “Exhibit
D”. Under no circumstances shall the Senior Interest Holders be bound by any credit for Rent which may have been paid
by Tenant for more than the then-current month. Any fees or costs imposed by the Senior Interest Holders or their attorneys in
connection with obtaining such SNDA Agreements shall be paid by Tenant provided, however, that Landlord shall notify Tenant
of the projected fees and costs prior to incurring the same. Tenant agrees to execute and acknowledge all such SNDA Agreements
and return same to Landlord within ten (10) days after Landlord’s written request therefor. In the event that Tenant fails
to so execute any such SNDA Agreement and deliver

 

    	 	26	 

     

    

 

same to
Landlord within said ten (10) days and continues to fail to do so within ten (10) days of a second written request by Landlord,
then such failure shall constitute a waiver by Tenant of Landlord’s obligation hereunder to obtain an SNDA Agreement from
such Superior Interest.

 

C.  Notwithstanding
anything to the contrary contained in this Lease, with respect to any entity that may hereinafter come to hold a ground or underlying
lease or mortgage, which is superior to the interest of Landlord in the Building and/or the Premises (a “Future Senior
Interest”), Landlord shall obtain for the benefit of Tenant an SNDA Agreement with each such Future Senior Interest.
Said SNDA Agreements will be in the form then customarily used
by each such Future Senior Interest. Tenant agrees to execute and acknowledge all such SNDA Agreements and return same to Landlord
within ten (10) days after Landlord’s written request therefor. In
the event that Tenant fails to so execute any such SNDA Agreement and deliver same to Landlord within said ten (10) days
and continues to fail to do so within ten (10) days of a second written request by Landlord, then such failure shall constitute
a waiver by Tenant of Landlord’s obligation hereunder to obtain an SNDA Agreement from such Future Senior Interest. Landlord
shall have no liability to Tenant for its failure to obtain any such SNDA Agreement referred to in this Section C, however in
such event, this Lease and all right of Tenant hereunder shall not be subordinate to such Future Senior Interests and the holders
of such Future Senior Interests unless and until Landlord obtains for Tenant an SNDA Agreement from the holder of each such Future
Senior Interest.

 

ARTICLE
14

 

CONDEMNATION

 

14.01    If
the whole or any substantial part of the Premises shall be condemned by eminent domain or acquired by private purchase in lieu
thereof, for any public or quasi-public purpose, this Lease shall terminate on the date of the vesting of title through such proceeding
or purchase, and Tenant shall have no claim against Landlord for the value of any unexpired portion of the Term of this Lease,
nor shall Tenant be entitled to any part of the condemnation award or private purchase price. Notwithstanding anything to the
contrary set forth above, Tenant shall not be prohibited from making a claim in any condemnation proceeding for the value of its
unaffixed, moveable property and for its relocation expenses, provided that such claim does not in any manner prejudice, prohibit
or diminish Landlord’s claims or the value of any award to Landlord. If less than a substantial part of the Premises is
condemned, this Lease shall not terminate, but Rent shall abate in proportion to the portion of the Premises condemned.

 

ARTICLE
15

 

REQUIREMENTS
OF LAW

 

15.01    Tenant
at its expense shall comply with all laws, orders and regulations of any governmental authority having or asserting jurisdiction
over the Premises, which shall impose any violation, order or duty upon Landlord or Tenant with respect to the Premises or the
use or

 

    	 	27	 

     

    

 

occupancy
thereof during the Term and any renewals or extensions thereof, including, without limitation, compliance in the Premises with
all City, State and Federal laws, rules and regulations on the disabled or handicapped, on fire safety and on hazardous materials
(collectively, “Applicable Laws”).The foregoing shall not require Tenant perform compliance work necessitated
by the acts or omissions of Landlord nor shall Tenant be required to do structural work to the Building unless such violation,
order or duty shall arise from (i) the particular use or manner of any use or occupancy of the Premises by Tenant or any person
claiming through or under Tenant, or (ii) a condition created by Tenant or any person claiming under or through Tenant or any
of their respective agents, contractors, employees, licensees, guests or invitees (including, without limitation, any Alteration
or improvement in the Premises), or (iii) a breach of Tenant’s
obligations under this Lease or the negligence of Tenant or its agents, contractors, employees, licensees, guests or invitees.
Landlord shall comply with all Applicable Laws affecting the Building except to the extent that Tenant is required to comply with
such Applicable Laws hereunder. Notwithstanding the foregoing, Landlord shall make any necessary corrections and/or modifications
to the ground floor gate located on the front of the Building in order to comply with all Applicable Laws with reasonable diligence
after the date hereof, subject to delay by causes beyond its control or by the action or inaction of Tenant.

 

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

 

15.03     Tenant
at its expense shall comply with all requirements of the New York Board of Fire Underwriters, or any other similar body affecting
the Premises, and shall not use the Premises in a manner which shall increase the rate of fire insurance of Landlord or of any
other tenant, over that in effect prior to this Lease and as of the date hereof, Landlord acknowledges, to the best of its knowledge,
that Tenant’s permitted use hereunder shall not increase such rate. If Tenant’s use of the Premises increases the
fire insurance rate, Tenant shall reimburse Landlord for all such increased costs. That the Premises are being used for the purpose
set forth in Article 1 hereof shall not relieve Tenant from the foregoing duties, obligations and expenses.

 

ARTICLE
16

 

CERTIFICATE
OF OCCUPANCY

 

16.01     Tenant
will at no time use or occupy the Premises in violation of the certificate of occupancy issued for the Building. The statement
in this Lease of the nature of the business to be conducted by Tenant shall not be deemed to constitute a representation or guaranty
by Landlord that such use is lawful or permissible in the Premises under the certificate of occupancy for the Building.

 

    	 	28	 

     

    

 

ARTICLE
17

 

POSSESSION

 

17.01     The
parties acknowledge and agree that it currently occupies the Premises pursuant to preexisting lease agreements therefore, each
of which is being cancelled of even date herewith by separate agreement between the parties.

 

17.02     If
Landlord shall be unable to give possession of the 3rd Floor Premises on the 3rd Floor Commencement Date
because of any reason beyond the reasonable control of Landlord, then in such event Landlord shall not be subject to any liability
for such failure, and this Lease shall stay in full force and effect without extension of its Term; however, the Rent, with respect
to the 3rd Floor Premises only, shall not commence until the 3rd Floor Premises are available for occupancy
by Tenant. Landlord shall use commercially reasonable efforts to give possession of the 3rd Floor Premises to Tenant
before December 1, 2008. If delay in possession is due to work, changes or decorations being made by or for Tenant, or is otherwise
caused by Tenant, there shall be no rent abatement and the Rent shall commence on the date specified in this Lease. The provisions
of this Article are intended to constitute an “express provision to the contrary” within the meaning of Section 223(a),
New York Real Property Law.

 

ARTICLE
18

 

QUIET
ENJOYMENT

 

18.01     Landlord
covenants that as long as this Lease is in effect, Tenant may peaceably and quietly enjoy the Premises, subject to the terms,
covenants and conditions of this Lease and to the ground leases, underlying leases and mortgages hereinbefore mentioned to which
this Lease is subject.

 

ARTICLE
19

 

RIGHT
OF ENTRY

 

19.01     Tenant
shall permit Landlord to erect, construct and maintain pipes, conduits and shafts in and through the Premises provided that they
are concealed, erected along perimeter walls wherever possible and are installed in a manner which does not interfere with Tenant’s
use of the Premises or materially reduce the usable area of the Premises. Landlord or its agents shall have the right to enter
or pass through the Premises at reasonable times, upon reasonable advance notice to Tenant (which may be given in person or by
telephone) and, in the event of an emergency, by master key, by reasonable force or otherwise, to examine the same, and to make
such repairs, alterations or additions as it may deem necessary or desirable to the Premises or the Building, and to take all
material into and upon the Premises that may be required therefor. Such entry and work shall not constitute an eviction of Tenant
in whole or in part, shall not be grounds for any abatement of Rent,

 

    	 	29	 

     

    

 

and shall
impose no liability on Landlord by reason of inconvenience or injury to Tenant’s business. Landlord shall use reasonable
efforts to minimize interference with Tenant’s normal business activities within the Premises provided, however, that Tenant
acknowledges and agrees that at, Landlord ’s election, all such work shall be performed on normal business days during normal
business hours, unless Tenant requests and pays Landlord incremental difference in cost for overtime or premium labor. Landlord
shall have the right at any time, without the same constituting an actual or constructive eviction, and without incurring any
liability to Tenant, to change the arrangement and/or location of entrances or passageways, windows, corridors, elevators, stairs,
toilets, or other public parts of the Building provided that same has no material adverse effect on Tenant, and to change the
designation of rooms and suites and the name or number by which the Building is known.

 

ARTICLE
20

 

INDEMNITY

 

20.01     Tenant
shall indemnify, defend and save Landlord harmless from and against any liability, loss, claims, demands, damages or expenses
(including reasonable attorneys’ fees, disbursements and court costs) in connection with third party claims arising from
the use or occupation of the Premises by Tenant, or anyone on the Premises with Tenant’s permission, or from any breach
of this Lease, or from any negligent act or omission of Tenant or any one claiming through or under Tenant and any of their agents,
contractors, employees, servants, licensees or visitors (unless caused by the negligence or willful misconduct of Landlord). The
provisions of this Section shall survive the Expiration Date or sooner termination of the Term.

 

ARTICLE
21

 

LANDLORD’S
LIABILITY, ETC.

 

21.01     This
Lease and the obligations of Tenant hereunder shall not in any way be affected because Landlord is unable to fulfill any of its
obligations or to supply any service, by reason of strike or other cause not within Landlord’s control except as otherwise
expressly provided herein. Landlord shall have the right, without incurring any liability to Tenant, upon reasonable advance notice
to Tenant (which may be given in person or by telephone), to stop any service because of accident or emergency, or for repairs,
alterations or improvements, necessary or desirable in the reasonable judgment of Landlord, until such repairs, alterations or
improvements shall have been completed. Landlord shall use reasonable efforts to minimize interference with Tenant’s normal
business activities within the Premises provided, however, that Tenant acknowledges and agrees that at, Landlord’s election,
all such repairs, alterations or improvements shall be performed on normal business days during normal business hours, unless
Tenant requests and pays Landlord incremental difference in cost for overtime or premium labor. Landlord shall not be liable to
Tenant or anyone else, for any loss or damage to person, property or business; nor shall Landlord be liable for any latent defect
in the Premises or the Building. Neither the partners, entities or individuals

 

    	 	30	 

     

    

 

comprising
the Landlord, nor the agents, directors, or officers or employees of any of the foregoing shall be liable for the performance
of the Landlord’s obligations hereunder. Tenant agrees to look solely to Landlord’s estate and interest in the land
and Building, or the lease of the Building or of the land and Building, and the Premises, and any sale proceeds derived there
from, for the satisfaction of any right or remedy of Tenant for the collection of a judgement (or other judicial process) requiring
the payment of money by Landlord, and in the event of any liability by Landlord, no other property or assets of Landlord or of
any of the aforementioned parties shall be subject to levy, execution or other enforcement procedure for the satisfaction of Tenant’s
remedies under or with respect to this Lease, the relationship of Landlord and Tenant hereunder, or Tenant’s use and occupancy
of the Premises or any other liability of Landlord to Tenant.

 

21.02     If
Landlord fails to make any repair or :furnish any service Landlord is obligated to provide under this Lease and such failure persists
for five (5) consecutive business days after notice from Tenant (or, in the event such repair cannot be commenced and completed
in such five (5) consecutive business day period; then provided Landlord has not commenced and continued to diligently prosecute
such repair within said five (5) consecutive business day period) and, as a result of such failure by Landlord, Tenant shall be
unable to use and shall have discontinued its use and occupancy of all or any affected portion of the Premises, then Tenant shall
be entitled to an abatement of fixed annual rent allocable to such portion of the Premises which is not usable and is not used
or occupied for each day after said five (5) consecutive business day period until said repair is substantially completed by Landlord
provided further, however, that Tenant shall not be entitled to an abatement of rent in
the event that such failure results from (i) any installation, alteration or improvement which is not performed by Tenant
in a good workmanlike manner; (ii) default by Tenant under the terms of this Lease; (iii) reasons beyond Landlord’s reasonable
control; or (iv) the negligence, tortious conduct or willful misconduct of Tenant, its employees, servants, representatives or
invitees.

 

ARTICLE
22

 

CONDITION
OF PREMISES

 

22.01     A.
The parties acknowledge and agree that Tenant currently occupies the Existing Premises pursuant to preexisting lease agreements
therefore, each of which is being cancelled of even date herewith by separate agreement between the parties, and that Tenant is,
therefore, fully familiar with the physical condition of the Building and the Existing Premises and Tenant agrees to accept the
Existing Premises at the commencement of the Term in its then
“as is” condition, except to the extent expressly provided for in this Article 22.

 

    	 	31	 

     

    

 

B.
Tenant acknowledges and agrees that Tenant has inspected the 3rd Floor Premises, is fully familiar with the physical condition
thereof and agrees to accept possession of the 3rd Floor Premises vacant, free of personal property, broom clean and
otherwise in “as is” condition as of the 3rd Floor Commencement Date; provided however, Landlord shall seal all openings
and penetrations in connection therewith the passageway between the 250 Building (as defined in Article 56 herein) and the 3rd
Floor Premises (“Landlord’s 3rd Floor Work”).

 

C.
Tenant acknowledges and agrees that Landlord shall have no obligation to do any work in or to the Premises in order to make it
suitable and ready for occupancy and use by Tenant under this Lease, except to the extent otherwise expressly provided for in
this Article 22.

 

22.02      Subject
to the provisions of this Article, Landlord shall perform the work to the Building set forth on the schedule annexed hereto as
Exhibit E in a building standard manner using building standard materials in all instances unless expressly specified (“Landlord’s
Existing Premises Work”), Landlord’s 3rd Floor Work and Landlord’s Existing Premises Work being
collectively referred to herein as “Landlord’s Work”), subject to delay by causes beyond its control
or by the action or inaction of Tenant. Landlord, or Landlord’s designated agent, shall perform Landlord’s Work with
reasonable dispatch, ·subject to delay by causes beyond its control or by the action or inaction of Tenant, or by Force
Majeure (as defined in Article 55 hereof). Tenant acknowledges and agrees that the performance of Landlord’s Work is expressly
conditioned upon compliance by Tenant with all the terms and conditions of (i) this Article (including, without limitation, Section
22.03 hereof) and, (ii) the Lease, including payment of Rent.

 

22.03      Tenant
acknowledges and agrees that (a) Landlord’s Work will be performed while Tenant remains in occupancy of the Premises and
that such work shall not constitute an eviction of Tenant in whole or in part, constructive or actual, and shall not be a ground
for any abatement of rent and shall not impose liability on the Landlord by reason of any inconvenience, injury to Tenant’s
business or otherwise and (b) in order to facilitate the performance by Landlord of Landlord’ s Work without delay and/or
additional expense to Landlord, Tenant shall promptly upon request and at its sole cost and expense relocate to other areas of
the Premises all materials, personalty, furnishings, personal property, fixtures, trade fixtures and equipment presently located
therein as reasonably designated by Landlord. Landlord shall use reasonable efforts to minimize interference with Tenant’s
normal business activities while performing Landlord’s Work provided, however, that Tenant acknowledges and agrees that
all work shall be performed on normal business days during normal business hours. Notwithstanding the foregoing, in the event
that Tenant requests that Landlord perform Landlord’s Work during times other than ordinary business hours, and such labor
is then available, Tenant shall be responsible for the cost of such overtime or premium labor charges as the case may be.

 

22.04      Landlord’s
Work shall be deemed to be substantially completed notwithstanding that (i) minor or non-material details of construction, mechanical
adjustment or decoration remain to be performed, provided, that said “Punch List Items” shall be completed by Landlord
within a reasonable time thereafter or (ii) a portion of Landlord’s Work is incomplete because construction scheduling requires
that such work be done after incomplete finishing or after

 

    	 	32	 

     

    

 

other work to be done by or on
behalf of Tenant is completed.

 

ARTICLE
23

 

CLEANING

 

23.0l      Tenant
shall, at Tenant’s expense, keep the Premises, including the windows, clean and in order, to the reasonable satisfaction
of Landlord, and for that purpose shall employ a reputable contractor, or other person or persons, or corporation approved by
the Landlord. Tenant shall, at its sole cost and expense, remove all rubbish from the Premises and the Building on a regular basis
consistent with good practice in office buildings of similar age, size and character in midtown Manhattan and in compliance with
all applicable laws, codes, rules and regulations, by means of duly licensed professionals subject to the prior written consent
of Landlord, which shall not be unreasonably withheld provided that such cleaning contractor does not employ any labor or materials
in the Premises which would create any difficulty with other contractors or labor engaged by Tenant or Landlord or others in the
construction, maintenance or operation of the Building or any part thereof, and further subject, however, to Landlord’s
right to revoke such approval in the event that (A) there occurs any negative experience beyond a de minimis extent with such
contractor (including, without limitation, that they: (i) fail to prosecute work in a manner consistent with good business or
trade practice, (ii) default on their obligations to Landlord, Tenant or other tenants of the Building, or (iii) conduct themselves
in an unprofessional or disreputable manner in or about the Building) or (B) reasonable concerns arise regarding the financial
stability of, or any criminal proceedings pending against, any such contractors or licensed professionals.

 

ARTICLE
24

 

JURY
WAIVER

 

24.01      Landlord
and Tenant hereby waive trial by jury in any action, proceeding or counterclaim involving any matter whatsoever arising out of
or in any way connected with this Lease, the relationship of Landlord and Tenant, Tenant’s use or occupancy of the Premises
or involving the right to any statutory relief or remedy. Tenant will not interpose any counterclaim of any nature (other than
a compulsory counterclaim) in any summary proceeding.

 

ARTICLE
25

 

NO
WAIVER, ETC.

 

25.01      No
act or omission of Landlord or its agents shall constitute an actual or constructive eviction, unless Landlord shall have first
received written notice of Tenant’s claim and shall have had a reasonable opportunity to meet such claim. In the event that
any payment herein provided for by Tenant to Landlord shall become overdue for a period in excess of seven (7) days,

 

    	 	33	 

     

    

 

then at
Landlord’s option, a “late charge” shall become due and payable to Landlord, as Additional Rent, equal to five
(5%) percent of the then outstanding balance of unpaid Fixed Annual Rent and Additional Rent; provided further that in the event
that Tenant fails to pay the “late charge” and the unpaid Fixed Annual Rent and Additional Rent by the twentieth (20th)
day of the calendar month which such payment was first due, Tenant shall pay to Landlord, as Additional Rent, an additional fee,
which shall not be or be deemed a penalty, but instead shall be deemed reasonably calculated to compensate Landlord, in part,
for costs or expenses paid or incurred by Landlord resulting from Tenant’s failure to make timely payment under this Lease
(both parties recognize and agree that the damage to Landlord resulting from any failure by Tenant timely pay Fixed Annual Rent
and Additional will be substantial due to Tenant’s occupancy of the entire rentable office space within the Building, and
will be impossible of accurate measurement}, at the following rates: a rate (the “Interest Rate”) equal to
two (2%) percent above the prime rate of interest charged by JP Morgan Chase, New York, (or the successor thereto) at the time
such payment first becomes due and compounding on the twentieth (20Th) day of each calendar month thereafter until
paid in full. No act or omission of Landlord or its agents shall constitute an acceptance of a surrender of the Premises, except
a writing signed by Landlord. The delivery or acceptance of keys to Landlord or its agents shall not constitute a termination
of this Lease or a surrender of the Premises. Acceptance by Landlord of less than the Rent herein provided shall at Landlord’s
option be deemed on account of earliest Rent remaining unpaid. No endorsement on any check, or letter accompanying Rent, shall
be deemed an accord and satisfaction, and such check may be cashed without prejudice to Landlord. No waiver of any provision of
this Lease shall be effective, unless such waiver be in writing signed by the party to be charged. In no event shall Tenant be
entitled to make, nor shall Tenant make any claim, and Tenant hereby waives any claim for money damages (nor shall Tenant claim
any money damages by way of set-off, counterclaim or defense) based upon any claim or assertion by Tenant that Landlord had unreasonably
withheld, delayed or conditioned its consent or approval to any request by Tenant made under a provision of this Lease. Tenant’s
sole remedy shall be an action or proceeding to enforce any such provision, or for specific performance or declaratory judgment,
except as otherwise provided in Section 21 above. Tenant shall comply with the rules and regulations contained in this Lease,
and any reasonable modifications thereof or additions thereto. Landlord shall not be liable to Tenant for the violation of such
rules and regulations by any other tenant. Failure of Landlord to enforce any provision of this Lease, or any rule or regulation,
shall not be construed as the waiver of any subsequent violation of a provision of this Lease, or any rule or regulation. This
Lease shall not be affected by nor shall Landlord in any way be liable for the temporary closing, darkening or bricking up of
windows in the Premises, for any reason, including as the result of construction on any property of which the Premises are not
a part or by Landlord’s own non-negligent acts. Landlord agrees that it shall not permanently close, darken or bricken up
windows in the Premises unless required by law, rule, regulation or code of any governmental authority having jurisdiction.

 

ARTICLE
26

 

OCCUPANCY
AND USE BY TENANT

 

26.01      If
this Lease is terminated because of Tenant’s default hereunder, then, in

 

    	 	34	 

     

    

 

addition
to Landlord’s rights of re-entry, restoration, preparation for and rerental, and anything elsewhere in
this Lease to the contrary notwithstanding, at Landlord’s election, all Rent and Additional Rent reserved in this
Lease from the date of such breach to the expiration date of this Lease shall become immediately due and payable to Landlord and
Landlord shall retain its right to judgment on and collection of Tenant’s aforesaid obligation to make a single payment
to Landlord of a sum equal to (i) the amount by which (x) the Fixed Annual Rent and Additional Rent payable hereunder for the
period to the Expiration Date from the date of such breach, exceeds (y) the then fair and reasonable rental value of the Premises
for the same period, both discounted at the prime rate of interest charged by JP Morgan Chase, New York, (or the successor thereto)
on the date of such breach to present worth, and (ii) all reasonable out-of-pocket expenses of Landlord in obtaining possession
of, and in effecting the reletting of the Premises including, without limitation, alteration costs, commissions, concessions and
legal fees. In no event shall Tenant be entitled to a credit or
repayment for rerental income which exceeds the sums payable by Tenant hereunder or which covers a period after the original Term
of this Lease.

 

ARTICLE
27

 

NOTICES

 

27.01
Any bill, notice or demand from Landlord to Tenant, may be delivered personally at the Premises or sent by registered or certified
mail or by any nationally recognized overnight delivery service and addressed to Tenant at the Premises or at the address first
set forth herein, Attn: Chief Financial Officer. A copy of any notice of default given to Tenant hereunder shall also be sent
for informational purposes only to Tenant at the Premises, Attn: General Counsel and to Davis & Gilbert LLP, 1740 Broadway,
New York, NY 10019, Attn: Jeffrey Morass, Esq., provided, however, that Landlord’s failure to do so shall not affect in
any way the validity or effectiveness of any such notice. Such bill, notice or demand shall be deemed to have been given at the
time of delivery, if delivered by hand, three (3) business days after mailing or receipt by such delivery, if sent by registered
or certified mail, or the next business day after mailing or receipt of such delivery, if sent by overnight delivery. Notwithstanding
the foregoing, bills sent from Landlord in the ordinary course of business to Tenant may be sent through regular mail and shall
be deemed to have been given two (2) business days after mailing or receipt by such delivery. Any notice, request or demand from
Tenant to Landlord must be sent by registered or certified mail to the last address designated in writing by Landlord and shall
be deemed to have been given three (3) business days after mailing or receipt. Either party may designate a different address
for which notices are to be sent by delivering such designation to the other party in accordance with the provisions of this Article.

 

ARTICLE
28

 

WATER

 

28.01       Landlord
shall permit Tenant to obtain water service to the Premises through

 

    	 	35	 

     

    

 

the presently
existing water facilities servicing the Premises to the extent presently available and safely capable of providing such service,
subject to the provisions of this Article. Tenant shall pay the amount of Landlord’s cost for all excessive water used by
Tenant for any purpose other than ordinary lavatory, cleaning and pantry uses, and any sewer rent or tax based thereon. Landlord
may install a water meter to measure Tenant’s water consumption for all purposes and Tenant agrees to pay for the installation
and maintenance thereof and for any such excess water consumption as shown on said meter at Landlord’s cost therefor plus
Landlord’s actual meter reading charge. If water is made available to Tenant in the Building or the Premises through a meter
which also supplies other Premises, or without a meter, then Tenant shall pay to Landlord a reasonable charge per month for any
such excess water. Landlord reserves the right to discontinue water service to the Premises in the case of emergency, or if required
by law, rule, regulation or code of any governmental authority having jurisdiction without releasing Tenant from any liability
under this Lease and without Landlord or Landlord’s agent incurring any liability for any damage or loss sustained by Tenant
by such discontinuance of service.

 

ARTICLE
29

 

SPRINKLER
SYSTEM

 

29.01      If there shall be a “sprinkler system” in the Premises for any period during this Lease, and if such sprinkler system
is damaged by any act or omission of Tenant or its agents, employees, licensees or visitors, Tenant shall restore the system to
good working condition at its own expense. If the New York Board of Fire Underwriters, the New York Fire Insurance Exchange, the
Insurance Services Office, or any governmental authority requires the installation of, or any alteration to a sprinkler system
in the Premises by reason of Tenant’s particular manner of occupancy or use of the Premises, including any alteration necessary
to obtain the full allowance for a sprinkler system in the fire insurance rate of Landlord, or for any other reason, Tenant shall
make such installation or alteration promptly, and at its own expense.

 

ARTICLE
30

 

HEAT,
ELEVATOR, ETC.

 

30.01      Tenant shall have access to the Premises twenty-four (24) hours a day, three hundred sixty-five (365) days a year, subject to
the provisions of this Lease and to causes beyond the reasonable control of Landlord. Landlord shall provide normal elevator service
during Tenant’s business hours (i.e., Monday to Friday, excluding holidays, between the hours of 8:00 a.m. and 9:00 pm)
and including Saturdays from 8:00 a.m. until p.m., except on Sundays, State holidays, Federal holidays, or Building Service Employees
Union Contract holidays. Notwithstanding the foregoing, Landlord shall provide a minimum of one (1) passenger elevator from the
lobby of the Building to the Premises twenty-four (24) hours per day, seven (7) days per week, subject to all other applicable
provisions of the Lease. If the elevators in the Building are manually operated, Landlord may convert to automatic elevators at
any time, without in any way affecting Tenant’s obligations

 

    	 	36	 

     

    

 

hereunder.

 

30.02      Landlord shall furnish heat to the Premises during normal business days (i.e., Monday through Friday) from 8:00 a.m. until 6:00
p.m. during the cold season in each year. In the event Tenant shall require heat to the Premises other than on the above referenced
days and hours, but during the cold season, Landlord shall furnish such heat provided that written notice is hand delivered to
Landlord at Landlord’s office in the Building, or such other· address designated by Landlord, not less than twenty-four
(24) hours prior to the date for which such service is requested and shall use reasonable efforts to supply such requested service
if less notice is give to Landlord. Tenant shall reimburse Landlord, as Additional Rent, within fifteen (15) days
of Landlord’s demand, $3,000.00 per month during the months of November through April for such after hour heat service.

 

ARTICLE
31

 

SECURITY
DEPOSIT

 

31.01      Landlord and Tenant acknowledge that Tenant is the tenant under that certain lease agreements (the “Existing Leases”)
between Landlord and Tenant, covering the Existing Premises. Landlord and Tenant acknowledge and agree that Tenant previously
deposited with Landlord, by Tenant, the sum of$1,125,000.00 (the “Security”) as and for its security deposit
under the Existing Lease and Tenant hereby authorizes Landlord and Landlord agrees to retain said Security subject to and in accordance
with the terms of Article 31 of this Lease, for the performance by Tenant of the terms of this Lease. Landlord may use any part
of the Security to satisfy any default of Tenant and any expenses arising from such default, including but not limited to late
fees, legal fees and any damages or rent deficiency before or after re-entry by Landlord. Tenant shall, upon demand, deposit with
Landlord the full amount so used, and/or any amount not so deposited by Tenant, in order that Landlord shall have the full Security
deposit on hand at all times during the term of this Lease. If Tenant shall comply fully with the terms of this Lease, the Security
shall be returned to Tenant after the date fixed as the end of the Lease. In the event of a sale or lease of the Building containing
the Premises, Landlord may transfer the Security to the purchaser or tenant, and Landlord shall thereupon be released from all
liability for the return of the Security. This provision shall apply to every transfer or assignment of the Security to a new
Landlord. Tenant shall have no legal power to assign or encumber the Security herein described.

 

31.02      (a) Within five (5) business days of execution and delivery of this Lease and Tenant’s receipt of the executed SNDA by the
Senior Interest Holder, Tenant shall deliver into escrow to Escrowee, as and for security hereunder a clean, irrevocable and unconditional
letter of credit in an amount equal to $1,250,000.00 (the “LOC”) as a replacement for the above cash deposit
(the “Cash Security’’) which shall comply and conform in all material respects with the form annexed
hereto and made apart hereof as “Exhibit F.” In the event that Tenant fails to strictly and timely comply with the
provisions hereof, Tenant shall no longer have the right to replace the Cash Security with the LOC and shall immediately, without
demand, deposit with Landlord as additional Security under the Lease, the sum of $125,000.00 (the “Additional Cash Security’’),
so that the total amount of the Cash Security held by Landlord under the Lease shall be$1,250,000.00 and Landlord shall continue

 

    	 	37	 

     

    

 

to hold
the Cash Security for its intended purposes.

 

(b)      Upon Tenant’s delivery of the LOC to Escrowee and within sixty (60) days of the date on which the Senior Interest Holder
approves of the Lease and executes and delivers the SNDA to Landlord, Landlord shall return to Tenant the amount of Cash Security
deposited with Landlord, and upon Landlord’s return of the Cash Security to Tenant, Escrowee shall promptly release the
Letter of Credit from escrow and deliver same to Landlord.

 

(c)      In the event that Tenant has delivered the Letter of Credit to Escrowee and Landlord does not deliver to Tenant the Cash Security
within the sixty (60) day period referenced above, and provided that (i) Tenant gives both Landlord (Attn: Ralph Sitt) and Escrowee
notice thereof, and (ii) Landlord fails to so reimburse Tenant within twenty (20) days thereafter, and (iii) provided that at
all relevant times Tenant is not in default of this Lease after notice (in which event Tenant’s rights under this Section
31.02(c)shall be suspended until the earlier of(a) Tenant’s timely and full cure of the default alleged in such notice,
at which time Tenant’s rights hereunder shall be reinstated, and (b) the expiration of Tenant’s time in which to cure
such default without curing the same, at which time Tenant’s offset rights hereunder shall be extinguished, but without
forfeiture of Tenant’s interest in the Cash Security or right to judicially recover the same or credit therefor from Landlord),
Tenant may offset amount of Cash Security in six (6) equal monthly installments as against the next accruing six (6) monthly installments
of Fixed Annual Rent due under this Lease. No earlier than thirty (30) days before the last day of the six (6) month period referenced
above, but no later than five (5) days after the last day of the six (6) month period referenced above, time being of the essence,
Tenant shall give notice to Escrowee authorizing the release of the LOC from escrow and delivery of same to Landlord. Tenant’s
failure to strictly and timely comply with the provisions of the immediately proceeding sentence within three (3) business days
notice from Landlord shall constitute a material default under this Lease for failure to replenish Security and, further, notwithstanding
anything to the contrary set forth in Article 5 of this Lease, there shall be no additional notice of default or cure period
afforded Tenant for such default. Tenant’s notice to Landlord (and Escrowee) requesting delivery of the Cash Security hereunder
shall state in bold, uppercase letters on the first (1st) page thereof, the following:

 

TENANT
SHALL HAVE THE RIGHT TO OFFSET THE AMOUNT SPECIFIED HEREIN AGAINST THE FIXED ANNUAL RENT NEXT BECOMING DUE UNDER THE LEASE IN
THE EVENT YOU FAIL TO DELIVER SUCH AMOUNT TO TENANT WITHIN TWENTY (20) DAYS AFTER THIS NOTICE SHALL HAVE BEEN GIVEN TO YOU.

 

Notwithstanding
anything to the contrary set forth above, Tenant shall not have any offset right against Fixed Annual Rent as set forth in this
Section 31.02(c), in the event and to the extent that Landlord shall give notice to Tenant within said twenty (20) day period
that such successor landlord disputes such release of Cash Security, accompanied by a reasonably detailed description of the basis
for such dispute.

 

(d)      Landlord
and Tenant agree jointly to defend (by attorneys selected by Escrowee), indemnify and hold Escrowee harmless from and against
any claim, judgment, loss,

 

    	 	38	 

     

    

 

liability,
damages, penalties, fines, cost or expense resulting from any dispute or litigation arising out of or concerning Escrowee’s
duties or services under this Article 32. This indemnity includes, without limitation, disbursements and reasonable attorneys’
fees either paid to retain attorneys or representing the fair value of legal services rendered by Escrowee on its own behalf.

 

(e)      Escrowee shall not be liable, and Landlord and Tenant both hereby release Escrowee from liability, for any error in judgment or
for any act undertaken or omitted by it in good faith, or for any mistake of fact of law, except for Escrowee’s own gross
negligence or willful misconduct.

 

(f)      Landlord and Tenant acknowledge that Escrowee is merely a stakeholder charged with duties hereunder which are purely ministerial
in nature. Notwithstanding its position as Escrowee hereunder, Escrowee shall be entitled to continue to represent Landlord or
its designee or successor in any and all matters including those pertaining to the Premises, and this Lease and the enforcement
thereof.

 

ARTICLE
32

 

TAX
ESCALATION

 

32.01     Tenant shall pay to Landlord, as Additional Rent, tax escalation in accordance with this Article. For purposes of this Lease,
Landlord and Tenant acknowledge and agree that the rentable square foot area of the Premises shall be deemed to be 130,900 square
feet, until the 3rd Floor Commencement Date, 143,800 square feet thereafter. For the purpose of this Article, the following definitions
shall apply:

 

(i)          The term “Tenant’s Share”, for purposes of computing tax escalation, shall mean, until the 3rd Floor
Commencement Date eighty six percent (86%), and thereafter, ninety four percent (94%).

 

(ii)         The term the “Building Project” shall mean the aggregate combined parcel of land on a portion of which are
the improvements of which the Premises form a part (and there are no other improvements on such land as of the date hereof), with
all the improvements thereon, said improvements being a part of the block and lot for tax purposes which are applicable to the
aforesaid land.

 

(iii)        The “Base
Tax Year” shall mean the New York City Real Estate Tax Year commencing July 1, 2006 and ending June 30, 2007.

 

(iv)        The term “Comparative Year” shall mean the twelve (12) month period following the Base Tax Year, and each subsequent
period of twelve (12) months thereafter.

 

(v)         The term “Real Estate Taxes” shall mean the total of all taxes and special or other assessments levied, assessed
or imposed at any time by any governmental authority upon or against

 

    	 	39	 

     

    

 

the Building
Project including, without limitation, any tax or assessment levied, assessed or imposed at any time by any governmental authority
in connection with the receipt of income or rents from said Building Project to the extent that same shall be in lieu of all or
a portion of any of the aforesaid taxes or assessments, or additions or increases thereof, upon or against said Building Project.
If, due to a future change in the method of taxation or in the taxing authority, or for any other reason, a franchise, income,
transit, profit or other tax or governmental imposition, however designated, shall be levied against Landlord in substitution
in whole or in part for the Real Estate Taxes, or in lieu of additions to or increases of said Real Estate Taxes, then such franchise,
income, transit, profit or other tax or governmental imposition shall be deemed to be included within the definition of “Real
Estate Taxes” for the purposes hereof. Provided, however, that except to the extent expressly includable hereunder, the
following shall be excluded from “Real Estate Taxes” for purposes of this Article: (i) income, estate, gift, succession,
inheritance, transfer, mortgage, gains, unincorporated business, commercial rent and franchise taxes imposed upon Landlord, (ii)
any assessment payable in connection with the financing or conveyance of all or a portion of the Building, increases in taxes
due to improvements dedicated to occupants of the Building other than Tenant, or its permitted assigns and subleasees, (iii) any
interest or penalties incurred by Landlord by reason of a late payment of Real Estate Taxes, and (iv) water, sewer, vault and
sales taxes, rents and/or charges.

 

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

 

32.02     In the event that the Real Estate Taxes payable for any Comparative Year shall exceed the amount of the Real Estate Taxes payable
during the Base Tax Year, Tenant shall pay to Landlord, as Additional Rent for such Comparative Year, an amount equal to
Tenant’s Share of the excess. Before or after the start of each Comparative Year, Landlord shall furnish to Tenant a statement
of the Real Estate Taxes payable during the Comparative Year, along with a copy of the applicable tax bill(s) provided that they
are then in the possession of Landlord. If the Real Estate Taxes payable for such Comparative Year exceed the Real Estate Taxes
payable during the Base Tax Year, Additional Rent for such Comparative Year, in an amount equal to Tenant’s Share of the
excess, shall be due from Tenant to Landlord, and such Additional Rent shall be payable by Tenant to Landlord within thirty (30)
days after receipt of the aforesaid statement; provided that Tenant pay in the same number of installments as Landlord. The benefit
of any discount for any early payment or prepayment of Real Estate Taxes shall accrue solely to the benefit of Landlord, and such
discount shall not be subtracted from the Real Estate Taxes payable for any Comparative Year. In addition to the foregoing, Tenant
shall pay to Landlord, within ten (10) days of demand, as Additional Rent, a sum equal to Tenant’s Share of any business
improvement district assessment payable by the Building Project. Upon Landlord’s receipt of a written request from Tenant,
Landlord shall provide Tenant with copies of the applicable Real Estate Tax bills for a specified Comparison Year provided that
they are then in the possession of Landlord.

 

32.03     Should the Real Estate Taxes payable during the Base Tax Year be reduced by final determination of legal proceedings, settlement
or otherwise, then, the Real Estate Taxes payable

 

    	 	40	 

     

    

 

during the
Base Tax Year shall be correspondingly revised, the Additional Rent theretofore paid or payable hereunder for all Comparative
Years shall be recomputed on the basis of such reduction, and Tenant shall pay to Landlord as Additional Rent, within ten (10)
days after being billed therefor, any deficiency between the amount of such Additional Rent as theretofore computed and the amount
thereof due as the result of such recomputations.

 

32.04     If, after
Tenant shall have made a payment of Additional Rent under Section 32.02, Landlord shall receive a refund of any portion of the
Real Estate Taxes payable for any Comparative Year after the Base Tax Year on which such payment of Additional Rent shall have
been based, as a result of a reduction of such Real Estate Taxes by final determination of legal proceedings, settlement or otherwise,
Landlord shall within ten (10) days after receiving the refund pay to Tenant Tenant’s Share of the refund less Tenant’s
Share of expenses (including reasonable attorneys’ and appraisers’ fees) incurred by Landlord in connection with any
such application or proceeding. In addition to the foregoing, Tenant shall pay to Landlord, as Additional Rent, within ten (10)
days after Landlord shall have delivered to Tenant a statement therefor, Tenant’s Share of all reasonable expenses incurred
by Landlord in reviewing or contesting the validity or amount of any Real Estate Taxes or for the purpose of obtaining reductions
in the assessed valuation of the Building Project prior to the billing of Real Estate Taxes, including without limitation, the
fees and disbursements of attorneys, third party consultants, experts and others. Landlord agrees that during the Term and any
extensions or renewals thereof, Landlord shall review and, as appropriate, contest the validity of Real Estate Taxes for the purpose
of obtaining reductions in the assessed valuation of the Building Project, in a manner consistent with that undertaken by other
prudent landlords of office buildings in midtown Manhattan of similar age, size and class.

 

32.05     The statements of the Real Estate Taxes to be furnished by Landlord as provided above shall be certified by Landlord and shall
constitute a final determination as between Landlord and Tenant of the Real Estate Taxes for the periods represented thereby,
unless Tenant within thirty (30) days after they are furnished shall give a written notice to Landlord that it disputes their
accuracy or their appropriateness, which notice shall specify the particular respects in which the statement is inaccurate or
inappropriate. If Tenant shall so dispute said statement then, pending the resolution of such dispute, Tenant shall pay the Additional
Rent to Landlord in accordance with the statement furnished by Landlord.

 

32.06     In
no event shall the fixed Annual Rent under this Lease be reduced by virtue of this Article.

 

32.07     If the
Commencement Date of the Term of this Lease is not the first day of the first Comparative Year, then the Additional Rent due hereunder
for such first Comparative Year shall be a proportionate share of said Additional Rent for the entire Comparative Year, said proportionate
share to be based upon the length of time that the lease Term will be in existence during such first Comparative Year. Upon the
date of any expiration or termination of this Lease (except termination because of Tenant’s default) whether the same be
the date hereinabove set forth for the expiration of the Term or any prior or subsequent date, a proportionate share of said Additional
Rent for the Comparative Year during which such expiration or termination occurs shall immediately become due and payable by Tenant
to Landlord, if it was not theretofore already billed

 

    	 	41	 

     

    

 

and paid.
The said proportionate share shall be based upon the length of time that this Lease shall have been in existence during such Comparative
Year. Landlord shall promptly cause statements of said Additional Rent for that Comparative Year to be prepared and furnished
to Tenant. Landlord and Tenant shall thereupon make appropriate adjustments of amounts then owing.

 

32.08     Landlord’s and Tenant’s obligations to make the adjustments referred to in Section 32.07 above shall survive any expiration
or termination of this Lease. Any delay or failure of Landlord in billing any tax escalation hereinabove provided shall not constitute
a waiver of or in any way impair the continuing obligation of Tenant to pay such tax escalation hereunder. Landlord shall deliver
to Tenant the final statement for the adjustment hereunder no later than twenty-four (24) months after the expiration of the Term
of this Lease or twenty-four (24) months following the sooner termination of this Lease and any sums due hereunder and not set
forth by Landlord in a statement delivered within said twenty-four
(24) month period shall be deemed waived by Landlord.

 

ARTICLE
33

 

RENT
CONTROL

 

33.01     In
the event the Fixed Annual Rent or Additional Rent or any part thereof provided to be paid by Tenant under the provisions
of this Lease during the Term shall become uncollectible or shall be reduced or required to be reduced or refunded by virtue of
any Federal, State, County or City rent control or similar law, order or regulation, or by any direction of a public officer or
body pursuant to law, or the orders, rules, code or regulations of any organization or entity formed pursuant to law, whether
such organization or entity be public or private (a “Legal Requirement”), then Tenant shall enter into such
agreements and take such other steps as Landlord may reasonably request to enable Landlord to collect the maximum rents which,
are thereafter and from time to time lawful (but not in excess of the rentals then reserved under this Lease). Upon the termination
of such Legal Requirement, (a) Rent shall become and thereafter be payable in accordance with the amounts reserved herein for
the periods following such termination and (b) Tenant promptly shall pay in full to Landlord, unless expressly prohibited by law,
an amount equal to (i) the Rents which would have been paid pursuant to this Lease but for such Legal Requirement less (ii) the
Rents paid to Landlord during the period such Legal Requirement was in effect.

 

ARTICLE
34

 

SUPPLIES

 

34.0
I     Only Landlord or any one or more persons, firms, or corporations authorized in writing by
Landlord shall be permitted to furnish laundry, linens, towels, water coolers, ice and other similar supplies and services to
tenants and licensees in the Building such authorization not to be unreasonably withheld. Landlord may fix, in its own
reasonable discretion, from time to time, the hours during which and the regulations under which such supplies and services
are to be furnished.

 

    	 	42	 

     

    

 

34.02     Only Landlord or any one or more persons, firms or corporations authorized in writing by Landlord shall be permitted to sell,
or furnish any food or beverages whatsoever for consumption within the Premises or elsewhere in the Building such authorization
not to be unreasonably withheld. Landlord further expressly reserves the right to exclude from the Building any person, firm or
corporation attempting to deliver or purvey any such food or beverages, but not so authorized by Landlord. It
is understood, however, that Tenant or its regular office employees may personally bring food or beverages into the Building
for consumption within the Premises by the said employees, but not for resale or for consumption by any other tenant.

 

ARTICLE
35

 

AIR
CONDITIONING

 

35.01     Tenant shall be permitted to exclusively use the equipment presently supplying air-conditioning service to Building (the “Existing
HVAC Equipment”) subject to and in accordance with the provisions of this Article. Tenant acknowledges and agrees that
air-conditioning service to the Building shall be supplied through equipment operated, maintained, repaired and replaced (as necessary)
by Tenant and that Landlord has no obligation to operate, maintain, repair or replace the said equipment or to supply air-conditioning
service to the Building, except for the equipment presently supplying air-conditioning service to the 3rd Floor Premises for the
period prior to the 3rd Floor Commencement Date and except for the Lobby HVAC. The Existing HVAC Equipment and all other air conditioning
systems, equipment and facilities hereafter located in or servicing the lobby of the Building or the Premises(the “Supplemental
Systems”) including, without limitation, the ducts, dampers, registers, grilles and appurtenances utilized in connection
with both the Existing HVAC Equipment and the Supplemental Systems (collectively hereinafter referred to as the “HVAC
System”), shall be operated, maintained, repaired and replaced (as necessary) by Tenant in compliance with all present
and future laws and regulations relating thereto at Tenant’s sole cost and expense. Tenant shall pay for all electricity
consumed in the operation of the HVAC System, and Tenant’s proportionate share of the electric current (and/or water, gas
and steam) for the production of chilled and/or condenser water and its supply to the Premises, if applicable, which shall become
the obligation of Tenant subject to the terms of Article 41 of this Lease. Tenant shall pay for all parts and supplies necessary
for the proper operation of the HVAC System (and any restoration or replacement by Tenant of all or any part thereof shall be
in quality and class at least equal to the original work or installations); provided, however, that Tenant shall not alter, modify,
remove or replace the HVAC System, or any part thereof, without Landlord’s prior written consent.

 

35.02     Without limiting the generality of the foregoing, Tenant shall, at its own cost and expense, (a) cause to be performed all maintenance
of the HVAC System, including all repairs and replacements thereto, and (b) commencing as of the date upon which Tenant shall
first occupy the Premises for the conduct of its business, and thereafter throughout the Term of the Lease, maintain in force
and provide a copy of same to Landlord a reasonable and customary air conditioning service repair and full service maintenance
contract covering the HVAC System with a reputable air conditioning contractor or servicing organization reasonably approved by
Landlord. The HVAC System is and shall at all times remain the property of Landlord, and at the expiration or

 

    	 	43	 

     

    

 

sooner termination
of the Lease, Tenant shall surrender to Landlord the HVAC System in good working order and condition, subject to normal wear and
tear and shall deliver to Landlord a copy of the service log. In the event that Tenant fails to obtain the contract required herein
or perform any of the maintenance or repairs required hereunder, Landlord shall have the right, but not the obligation, to procure
such contract and/or perform any such work and charge the Tenant as Additional Rent hereunder the cost of same plus an administrative
fee equal to fifteen (15%) percent of such cost which shall be paid for by Tenant on demand.

 

35.03     ln the event that Tenant shall require air conditioning service other than during normal business hours (i.e., Monday through
Friday from 8:00 a.m. to 6:00 p.m.), Landlord shall furnish after hours air conditioning service through the Existing HVAC Equipment
at no additional charge to Tenant. provided that written notice is given to Landlord by Tenant’s not less than six (6) hours
prior to the time for which such service is requested or prior to 1:00 p.m. on business days preceding weekends and the aforementioned
holidays.

 

ARTICLE
36

 

SHORING

 

36.01     Tenant shall permit any person authorized to make an excavation on land adjacent to the Building containing the Premises to do
any work within the Premises necessary to preserve the wall of the Building from injury or damage, and Tenant shall have no claim
against Landlord for damages or abatement of rent by reason thereof. Landlord shall endeavor to use commercially reasonable efforts
to minimize interference with Tenant’s permitted use of the Premises during the course of said excavations and shoring.

 

ARTICLE
37

 

EFFECT
OF CONVEYANCE, ETC.

 

37.01     If the Building containing the Premises shall be sold, transferred or leased, or the lease thereof transferred or sold, Landlord
shall be relieved of all future obligations and liabilities hereunder and the purchaser, transferee or tenant of the Building
shall be deemed to have assumed and agreed to perform all such obligations and liabilities of Landlord hereunder. In the event
of such sale, transfer or lease, Landlord shall also be relieved of all existing obligations and liabilities hereunder, provided
that the purchaser, transferee or tenant of the Building assumes in writing such obligations and liabilities.

 

    	 	44	 

     

    

 

ARTICLE
38

 

RIGHTS
OF SUCCESSORS AND ASSIGNS

 

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

 

ARTICLE
39

 

CAPTIONS

 

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

 

ARTICLE
40

 

BROKERS

 

40.01     Tenant covenants, represents and warrants that Tenant has had no dealings or negotiations with any broker or agent in connection
with the consummation of this Lease other than Sitt Leasing LLC and Colliers ABR (collectively, the “Brokers”)
and Tenant covenants and agrees to defend, hold harmless and indemnify Landlord from and against any and all
cost, expense (including reasonable attorneys’ fees) or liability for any compensation, commissions or charges claimed
by any broker or agent with respect to this Lease or the negotiation thereof.

 

40.02     Landlord represents and warrants to Tenant that it did not consult or negotiate with any broker, finder, or consultant with regard
to the Premises other than the Brokers, and that no other broker, finder or consultant participated with Landlord in procuring
this Lease. Landlord hereby indemnifies and agrees to defend and hold Tenant, its agents, servants and employees harmless from
any suit, action, proceeding, controversy, claim or demand whatsoever at law or in
equity that may be instituted against Tenant by anyone with whom Landlord has dealt for recovery of compensation or damages
for procuring this Lease. Landlord shall pay commissions due the Brokers in connection with this Lease, if any, pursuant to the
terms of separate agreements.

 

    	 	45	 

     

    

 

ARTICLE
41

 

ELECTRICITY

 

41.0
I     Landlord and Tenant agree that Landlord shall furnish electricity to Tenant on a redistributed basis. For purposes of this Article
41, the Premises shall be deemed to be, until the 3rd Floor Commencement Date, eighty six (86%), and thereafter, ninety four percent
(94%) of the Building and Tenant agrees that Tenant’s share of the Building electric current shall be, until the 3rd Floor
Commencement Date, eighty six (86%), and thereafter, ninety four percent (94%) (“Tenant’s Electric Percentage”)
of the entire Building’s electric current (excluding the retail portions of the Building).

 

41.02     Tenant agrees that Tenant shall pay, as Additional Rent in accordance with the provisions hereof, Tenant’s Electric Percentage
of any and all sums billed to Landlord by any and all public utility and/or other service providers of electricity and electrical
service to the Building(excluding the retail portions of the Building). Electricity and electric service, as used herein, shall
mean any element affecting the generation, transmission, and/or distribution or redistribution of electricity, including but not
limited to services which facilitate the distribution of service.

 

41.03     Bills shall be rendered at such times as Landlord may elect, and the amount, as computed from meters, shall be deemed to be, and
shall be paid as Additional Rent. If any tax is imposed upon Landlord’s receipt from the resale of electrical energy to
Tenant by any Federal, State or Municipal authority, Tenant covenants and agrees that, where permitted by law, Tenant’s
share of such taxes based upon its usage and demand shall be passed on to, and shall be included in the bill of, and shall be
paid by Tenant to Landlord, without duplication. Where more than one meter measures the service of Tenant in the Building, the
KWH and KW recorded by each meter shall be computed and billed separately in accordance with rates set forth herein.

 

41.04     Landlord shall not be liable to Tenant for any loss or damage or expense which Tenant may sustain or incur if either the quantity
or character of electric service is changed or is no longer available or suitable for Tenant’s requirements. Tenant covenants
and agrees that at all times its use of electric current shall never exceed the capacity of existing feeders to the building or
the risers or wiring installation. If Tenant shall require any additional riser or risers, feeders or other equipment or service
proper or necessary to supply Tenant’s electrical requirements, upon written request of Tenant, the same will be installed
by Landlord, at the sole cost and expense of Tenant if, in Landlord’s reasonable judgment, the same are necessary, and to
the extent that Tenant or anyone claiming through Tenant does not occupy the entire rentable square footage of the Building, will
not result in a diminution in the amount of electrical power available to other tenants or occupants in the building and provided
that same is then available and will not cause damage or injury to the building or Premises or cause or create a dangerous or
hazardous condition or entail excessive or unreasonable alterations, repairs or expense or interfere with or unreasonably disturb
other tenants or occupants in the building. In addition to any such installation, Landlord will also, at the sole cost and expense
of Tenant, install all other equipment proper and necessary in connection therewith, subject to the aforesaid terms and conditions.

 

    	 	46	 

     

    

 

41.05     In the event that all or part of the meters, or system which measures Tenant’s consumption of electricity (the “Submetering
System”),shall malfunction, (a) Landlord, through an independent, electrical consultant selected by Landlord, shall
reasonably estimate the readings that would have been yielded by said Submetering System as if the malfunction had not occurred,
on the basis of Tenant’s prior usage and demand and the lightning and equipment installed within the Premises and (b) Tenant
shall utilize such estimated readings and the bill rendered based thereon shall be binding and conclusive on Tenant unless, within
thirty (30) days after receipt of such a bill, Tenant challenges, in writing to Landlord, the accuracy or method of computation
thereof If within thirty (30) days of Landlord’s receipt of such a challenge, the parties are unable to agree on the amount
of the contested bill, the controlling determination of same shall be made by an independent electrical consultant agreed upon
by the parties or, upon their inability to agree, as selected by the American Arbitration Association. The determination of such
electrical consultant shall be final and binding on both Landlord and Tenant and the expenses of such consultant shall be divided
equally between the parties. Pending such controlling determination, Tenant shall timely pay additional rent to Landlord in accordance
with the contested bill. Tenant shall be entitled to a prompt refund from Landlord, or shall make prompt additional payment to
Landlord, in the event that the electrical consultant determines that the amount of a contested bill should have been other than
as reflected thereon.

 

41.06     If all or part of the Additional Rent payable in accordance with this Article becomes uncollectible or reduced or refunded by
Virtue of any law, order or regulation, the parties agree that, at Landlord’s option, in lieu thereof, and in consideration
of Tenant’s use of the building’s electrical distribution system and receipt of redistributed electricity and payment
by Landlord of consultants’ fees and other redistribution costs, in lieu of the charges set forth in Section 41.02 above,
the fixed annual rental rate(s) to be paid under this Lease shall be increased by an “alternative charge” which shall
be a sum equal to $3.00 per year per rentable square foot of the Premises, changed in the same percentage as any increase in the
cost to Landlord for electricity for the entire Building subsequent to the date hereof, because of electric rate, service classification
or market price changes, such percentage change to be computed as in Section 41.04-provided.

 

41.07     Landlord
reserves the right to terminate the furnishing of redistributed electricity, upon thirty (30) days’ written notice to Tenant,
in which event Tenant shall make application directly to the public utility for Tenant’s entire separate supply of electric
current and Landlord shall permit its risers, feeders, meters, wires and conduits, to the extent available and safely capable,
to be used for such purpose. Any meters, risers or other equipment or connections necessary to enable Tenant to obtain electric
current directly from such utility shall be installed at Tenant’s sole cost and expense. Only rigid conduit or electricity
metal tubing (EMT) will be allowed. Landlord, upon the expiration of the aforesaid thirty (30) days’ written notice to Tenant,
may discontinue furnishing the redistributed electric current and Tenant shall purchase electric service directly from the public
utility for Tenant’s separate supply of electric current (and the provisions of Sections 41.01, 41.02, 41.03, 41.05 and
41.06 shall not apply), but this Lease shall otherwise remain in full force and effect. Notwithstanding the foregoing, provided
that Tenant promptly applies for such direct service and diligently pursues such application to completion, Landlord shall not
so discontinue such redistributed service until Tenant obtains electric service

 

    	 	47	 

     

    

 

directly from the public utility,
unless required by law.

 

41.08     Intentionally
deleted.

 

41.09     Landlord shall not be liable to Tenant for any loss or damage or expense which Tenant may sustain or incur if either the quantity
or character of electric service is changed or is no longer available or suitable for Tenant’s requirements. Any riser or
risers to supply Tenant’s electrical requirements, upon written request of Tenant, will be installed by Landlord, at the
sole cost and expense of Tenant, if, in Landlord’s sole judgment, the same are necessary and will not cause permanent damage
or injury to the Building or the Premises or cause or create a dangerous or hazardous condition or entail excessive or unreasonable
alterations, repairs or expense or interfere with or disturb other tenants or occupants. In addition to the installation of such
riser or risers, Landlord will also at the sole cost and expense of Tenant, install all other equipment proper and necessary in
connection therewith subject to the aforesaid terms and conditions.

 

ARTICLE
42

 

LEASE
SUBMISSION

 

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

 

ARTICLE
43

 

INSURANCE

 

43.0I.     Tenant shall not violate, or permit the violation of, any condition imposed by the standard fire insurance policy then issued
for office buildings in the Borough of Manhattan., City of New York and shall not do, or permit anything to be done, or keep or
permit anything to be kept in the Premises which would subject Landlord to any liability or responsibility for personal injury
or death or property damage, or which would increase the fire or other casualty insurance rate on the Building or the property
therein over the rate which would otherwise then be in effect (unless Tenant pays the resulting premium as hereinafter provided
for) or which would result in insurance companies of good standing refusing to insure the building or any of such property in
amounts reasonably satisfactory to Landlord.

 

43.02     Tenant covenants to provide on or before the earlier to occur of (i) the Commencement Date, and (ii) ten (10) days from the date
of this Lease, and to keep in force during the term hereof the following insurance coverage which coverage shall be effective
on the Commencement Date:

 

    	 	48	 

     

    

 

(a)     A comprehensive policy of liability insurance naming Landlord and its designees as additional insureds protecting Landlord, its
designees and Tenant against any liability whatsoever occasioned by accident on or about the Premises or any appurtenances thereto.
Such policy shall have limits of liability of not less than Ten Million ($10,000,000.00) Dollars combined. single limit coverage
on a per occurrence basis, including property damage. Such insurance may be carried under a blanket policy covering the Premises
and other locations of Tenant, if any, provided such a policy contains an endorsement (i) naming Landlord and its designees as
additional insureds, (ii) specifically referencing the Premises; and (iii) guaranteeing a minimum limit available for the Premises
equal to the limits of liability required under this Lease;

 

(b)     Fire and extended coverage in an amount adequate to cover the cost of replacement of all personal property, fixtures, furnishings,
equipment, improvements and installations located in the Premises.

 

43.03     All such policies shall be issued by companies of recognized responsibility licensed to do business in New York State and rated
by Best’s Insurance Reports or any successor publication of comparable standing and carrying a rating of A VIII or better
or the then equivalent of such rating, and all such policies shall contain a provision whereby the same cannot be canceled or
materially modified unless Landlord and any additional insured are given at least thirty (30) days prior written notice of such
cancellation or modification.

 

43.04     Prior to the time such insurance is first required to be carried by Tenant and thereafter, at least fifteen (15) days prior to
the expiration of any such policies, Tenant shall deliver to Landlord certificates evidencing such insurance, together with evidence
of payment for the policy. Tenant’s failure to provide and keep in force the aforementioned insurance shall be regarded
as a material default hereunder, entitling Landlord to exercise any or all of the remedies as provided in this Lease in the event
of Tenant’s default. In addition, in the event Tenant fails to provide and keep in force the insurance required by this
Lease, at the times and for the durations specified in this Lease, Landlord shall have the right, but not the obligation, at any
time and from time to time, and without notice, to procure such insurance and/or pay the premiums for such insurance in which
event Tenant shall repay Landlord within five (5) days after demand by Landlord, as Additional Rent, all sums so paid by Landlord
and any costs or expenses incurred by Landlord in connection therewith without prejudice to any other rights and remedies of Landlord
under this Lease.

 

43.05     Landlord and Tenant shall each endeavor to secure an appropriate clause in, or an endorsement upon, each fire or extended coverage
policy obtained by it and covering the Building, the Premises or the personal property, fixtures and equipment located therein
or thereon, pursuant to which the respective insurance companies waive subrogation or permit the insured, prior to any loss, to
agree with a third party to waive any claim it might have against said third party. The waiver of subrogation or permission for
waiver of any claim hereinbefore referred to shall extend to the agents of each party and its employees and, in the case of Tenant,
shall also extend to all other persons and entities occupying or using the Premises in accordance with the terms of this Lease.
If and to the extent that such waiver or permission can be obtained only upon payment of an additional charge then, except as
provided in the following two paragraphs, the party benefiting from the waiver or permission shall pay such charge upon demand,
or shall be deemed to have agreed that the party

 

    	 	49	 

     

    

 

obtaining the insurance coverage
in question shall be free of any further obligations under the provisions hereof relating to such waiver or permission.

 

43.06     In the event that Landlord shall be unable at any time to obtain one of the provisions referred to above in. any of its insurance
policies, at Tenant’s option, Landlord shall cause Tenant to be named in such policy or policies as one of the insureds,
but if any additional premium shall be imposed for the inclusion of Tenant as such an insured, Tenant shall pay such additional
premium upon demand. In the event that Tenant shall have been named as one of the insureds in any of Landlord’s policies
in accordance with the foregoing, Tenant shall endorse promptly to the order of Landlord, without recourse, any check, draft or
order for the payment of money representing the proceeds of any such policy or any other payment growing out of or connected with
said policy and Tenant hereby irrevocably waives any and all rights in and to such proceeds and payments.

 

43.07     In the event that Tenant shall be unable at any time to obtain one of the provisions referred to above in any of its insurance
policies, Tenant shall cause Landlord to be named in such policy or policies as one of the insureds, but if any additional premium
shall be imposed for the inclusion of Landlord as such an insured, Landlord shall pay such additional premium upon demand or Tenant
shall be excused from its obligations under this paragraph with respect to the insurance policy or policies for which such additional
premiums would be imposed.

 

43.08     Subject to the foregoing provisions of this Article, and insofar as may be permitted by the terms of the insurance policies carried
by it, each party hereby releases the other with respect to any claim (including a claim for negligence) which it might otherwise
have against the other party for loss, damages or destruction with respect to its property by fire or other casualty (including
rental value or business interruption, as the case may be) occurring during the Term of this Lease.

 

43.09     If, by reason of a failure of Tenant to comply with the provisions of this Lease, the rate of fire insurance with extended coverage
on the building or equipment or other property of Landlord shall be higher than it otherwise would be, Tenant shall reimburse
Landlord, on demand, for that part of the premiums for fire insurance and extended coverage paid by Landlord because of such failure
on the part of Tenant.

 

43.10.     Landlord may, from time to time but not more than three (3) times during the original Term of this Lease, require that the amount
of the insurance to be provided and maintained by Tenant hereunder be increased so that the amount thereof adequately protects
Landlord’s interest, but in no event in excess of the amount that would be required of other tenants in other similar office
buildings in the borough of Manhattan.

 

43.11    A schedule or make up of rates for the building or the Premises, as the case may be, issued by the New York Fire Insurance Rating
Organization or other similar body making rates for fire insurance and extended coverage for the premises concerned, shall be
conclusive evidence of the facts therein stated and of the several items and charges in the fire insurance rate with extended
coverage then applicable to such premises.

 

    	 	50	 

     

    

 

43.12      Each policy evidencing the insurance to be carried by Tenant under this Lease shall contain a clause that such policy and the
coverage evidenced thereby shall be primary with respect to any policies carried by Landlord, and that any coverage carried by
Landlord shall be excess insurance. Landlord agrees that at all times during the Term it shall maintain in force and effect for
the Building casualty and liability insurance coverage with underwriters, of a scope, and having policy limits, which are comparable
to those maintained by prudent landlords of office buildings in midtown Manhattan of similar age, size, character and location.

 

ARTICLE
44

 

SIGNAGE

 

44.01      Tenant shall be permitted to affix a sign or plaque on or adjacent to the entrance door to the Premises, subject to the prior
written approval of Landlord which shall not be unreasonably withheld subject to the other provisions of this Article, with respect
to location, design, size, materials, quality, coloring, lettering and shape thereof, and subject, also, to compliance by Tenant,
at its expense, with all applicable legal requirements or regulations. All such signage shall be consistent and compatible with
the design, aesthetics, signage and graphics as other signage at the Building and shall not diminish or impair the character or
reputation of the Building or Landlord. Landlord may remove any sign installed in violation of this provision, and Tenant shall
pay the cost of such removal and any restoration costs.

 

44.02      Notwithstanding anything to the contrary contained in this Article, the tenant named on the first page of this Lease (the “Named
Tenant”) may affix signs at the same locations, in the same manner and of the same size as those which are currently
maintained by Tenant pursuant to its prior tenancy at the Building, to which Landlord hereby consents subject to their compliance
in each instance with the applicable provisions of Section 44.01, above, and this Lease and provided that at or before the Expiration
Date or sooner termination of the Term, Tenant removes all such signs and repairs any resulting damage to the Premises or the
Building immediately thereafter at Tenant’s sole cost and expense in
a good and workmanlike manner using materials that are of a quality equal or superior to those which were damaged and otherwise
in compliance with the applicable provisions of this Lease:

 

	 	(i)	at the left of the front faҫade of the Building; and
	 	(ii)	on the lobby wall between the two {2) existing passenger elevators; and 
	 	(iii)	above the existing brass entry doors of the lobby from the street; and 
	 	(iv)	on the existing brass entry doors of the lobby from the street; and
	 	(v)	on the roof of the Building,  above the penthouse  portion of the Premises.

  

44.03      Notwithstanding anything to the contrary contained herein, for so long as the Tenant or anyone claiming through the Tenant occupies
at least seventy five (75%) percent of the entire rentable portion of the Building, from the date hereof, Landlord shall (i) restrict
all future retail tenants of the Building (and to the extent that the retail leases of existing retail tenants of the Building
prohibit the same) from installing external signage, blade signs and/or storefront signs

 

    	 	51	 

     

    

 

which are
not in keeping with the first class standard and character of the Building, or are otherwise detrimental to the reputation and
image of the Building, (ii) prohibit said retail tenants from installing any flashing and/or neon signage on their respective
storefronts unless such signage is required by law, rule, regulation or code of any governmental authority having jurisdiction,
and (iii) restrict said retail tenants from installing any signage which blocks Tenant’s second (2nd) floor windows
unless required by law, rule, regulation or code of any governmental authority having jurisdiction.

 

ARTICLE
45

 

INTENTIONALLY
DELETED

 

ARTICLE
46

 

FUTURE
CONDOMINIDM CONVERSION

 

46.01      Tenant
acknowledges that the Building and the land of which the Premises form a part may be subjected to the condominium form of ownership
prior to the end of the Term of this Lease. Tenant agrees that if, at any time during the Term, the Building and the land shall
be subjected to the condominium form of ownership, then, this Lease and all rights of Tenant hereunder are and shall be subject
and subordinate in all respects to any condominium declaration and any other documents (collectively, the “Declaration”)
which shall be recorded in order to convert the Building and the land of which the Premises form a part to a condominium form
of ownership in accordance with the provisions of Article 9-B of the Real Property Law of the State of New York or any successor
thereto, provided that Tenant’s obligations under this Lease shall not be materially increased (and there shall be no increase
in Tenant’s monetary obligations) and Tenant’s rights are not diminished as a result thereof. If any such Declaration
is to be recorded, Tenant, upon request of Landlord, shall enter into an amendment of this Lease in such respects as shall be
necessary to conform to such condominiumization, including, without limitation, appropriate adjustments to Real Estate Taxes payable
during the Base Tax Year, Base Year, and Tenant’s Share, as such terms are defined in Article 32 hereof, provided that Tenant’s
obligations under this Lease shall not be materially increased (and there shall be no increase in Tenant’s monetary obligations)
and Tenant’s rights are not diminished as a result thereof.

 

ARTICLE
47

 

MISCELLANEOUS

 

47.0
I    This Lease represents the entire understanding between the parties with regard to the matters addressed herein and may only
be modified by written agreement executed by all parties hereto. All prior understandings or representations between the parties
hereto, oral or written, with regard to the matters addressed herein are hereby merged herein. Tenant acknowledges that

 

    	 	52	 

     

    

 

neither
Landlord nor any representative or agent of Landlord has made any representation or warranty, express or implied, as to the physical
condition, state of repair, layout, footage or use of the Premises or any matter or thing affecting or relating to Premises except
as specifically set forth in this Lease. Tenant has not been induced by and has not relied upon any statement, representation
or agreement, whether express or implied, not specifically set forth in this Lease. Landlord shall not be liable or bound in any
Manner by any oral or written statement, broker’s “set-up”, representation, agreement or information pertaining
to the Premises, the Building or this Agreement furnished by any real estate broker, agent, servant, employee or other person,
unless specifically set forth herein, and no rights are or shall be acquired by Tenant by implication or otherwise unless expressly
set forth herein. This Lease shall be construed without regard to any presumption or other rule requiring construction against
the party causing this agreement to be drafted.

 

ARTICLE
48

 

INTENTIONALLY
OMITTED

 

ARTICLE
49

 

INTENTIONALLY
OMITTED

 

ARTICLE
50

 

OPERATING
EXPENSE ESCALATION

 

50.01      Tenant
shall pay to Landlord, as Additional Rent, operating expense escalations in accordance with this Article.

 

50.02      For the
purposes of this Article, the following definitions shall apply:

 

(i)        The term “Base Year” as herein after set forth for the determination of operating expense escalation, shall
mean the calendar year 2009 for the Existing Premises and the calendar year on which the 3rd Floor Commencement Date occurs for
the 3rd Floor Premises, and the term “Base Insurance Expenses” year shall mean the calendar year
2009 for the Existing Premises and for the 3rd Floor Premises, the calendar year on which the 3rd Floor
Commencement Date occurs.

 

(ii)       The term the “Percentage”, for purposes of computing operating expense escalations hereunder, shall mean eighty
six (86%) percent until the 3rd Floor Commencement Date, and thereafter, ninety four (94%) percent. The Percentage
has been computed on -the basis of a fraction, the numerator of which is the rentable square foot area of the presently demised
premises and the denominator of which is the total rentable square foot area of the office space in the Building.

 

    	 	53	 

     

    

 

(iii)      The term the “Building Project” for purposes of this Article shall mean the aggregate combined parcel of land
on a portion of which is the Building of which the Premises form a part, with all the improvements and appurtenances thereon,
said improvements being a part of the block and lot for tax purposes which are applicable to the aforesaid land.

 

(iv)      The term “Comparative Year” for purposes of this Article shall mean the twelve (12) months following the Base
Year, and each subsequent period of twelve (12) months, and the term “Comparative Insurance Year” for purposes
of this Article shall mean the twelve (12) month period commencing as of January 1, 2010, and each subsequent period of twelve
(1 2) months.

 

(v)       The
term “Building Insurance Expenses” shall mean the total of all the customary costs and expenses incurred or
borne by Landlord with respect to procuring and maintaining in respect of the Building Project: comprehensive all risk insurance
on the Building Project and the personal property of Landlord contained therein or thereon; commercial general liability insurance
against claims for personal injury, bodily injury, death or property damage, occurring upon, in or about the Building Project;
extended coverage, boiler and machinery, sprinkler, apparatus, rental, business income and plate glass insurance; owner’s
contingent or protective liability insurance; workers’ compensation and employer’s liability insurance; insurance
against acts of terrorism (including, without limitation, bio-terrorism), and any insurance required by a mortgagee;

 

(vi)      The term “Expenses” shall mean the total of all the costs and expenses incurred or borne by Landlord with respect
to the operation and maintenance of the Building Project and the services provided tenants therein, including, but not limited
to, the costs and expenses incurred for and with respect to: steam and any other fuel; water rates and sewer rents; Building air-conditioning; mechanical ventilation; heating; cleaning, by contract
or otherwise; window washing (interior and exterior); elevators, escalators; parking areas and facilities; porters and matron
service; protection and security; Building electric current*; lobby decoration; repairs, replacements and improvements which are
appropriate for the continued operation of the Building as a first-class building; maintenance; painting of non-tenant areas;
supplies; wages, salaries, disability benefits, pensions, hospitalization, retirement plans and group insurance respecting employees
of the Building up to and including the building manager; uniforms and working clothes for such employees and the cleaning thereof
and expenses imposed pursuant to law or to any collective bargaining agreement with respect to such employees; workmen’s
compensation insurance, payroll, social security, unemployment and other similar taxes with respect to such employees; and association
fees or dues.

 

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

 

 

*i.e.
Building electric current shall be deemed to mean all electricity purchased for the Building except that which is redistributed
to Tenant and/or is paid for by Tenant pursuant to Article41 hereof; the parties acknowledge and agree that six percent (6%) of
the Building’s payment to the public utility for the purchase of electricity shall be deemed to be payment for Building
electric current.

 

    	 	54	 

     

    

 

(a)       Taxes and transfer, gains, franchise, inheritance, estate, occupancy, succession, gift, corporation, unincorporated business,
gross receipts, profit and income taxes payable by Landlord,

 

(b)       mortgage interest and amortization,

 

(c)       all leasing costs, including, without limitation, leasing and brokerage commissions and similar fees,

 

(d)       the cost of electricity furnished to the Premises or any other space in the Building leased, or available for lease, to tenants
or for which Tenant pays separately (including Tenant’s payment of Tenant’s Electric Percentage (as defined in Article
41),

 

(e)       the cost of tenant installations and decorations incurred in connection with preparing space for a tenant’s occupancy, and
any other contribution by Landlord to the cost of a tenant’s improvements,

 

(f)       salaries, fringe benefits and other compensation of Landlord’s personnel above the grade of building manager; or other off-site
personnel,

 

(g)       ground rent or any other payments paid under Superior Leases (other than in the nature of rent consisting of Taxes or Operating
Expenses and other payments which, independent of a Superior Lease, would constitute an Operating Expense hereunder),

 

(h)       depreciation
and amortization, except as provided herein, (i)financing and refinancing costs and bad debt loss,

 

(g)       except
as otherwise expressly provided herein, the cost of any improvement, repair, alteration, addition, change, replacement or other
item which under generally accepted accounting principles (consistently applied) is properly classified as a capital expenditure,

 

(k)       lease takeover or take back costs incurred by Landlord in connection with leases in the Building,

 

(l)       legal fees, expenses and disbursements (including, without limitation, those incurred in connection with leasing, sales, financing
or refinancing or disputes with current or prospective tenants), except such fees as are reasonably incurred in connection with
the operation of the Property or are incurred to abate a nuisance which benefits substantially all the tenants of the Building,
provided that, in each case, (x) such action would reasonably be taken by a prudent owner of a comparable first-class office building,
(y) the same do not result directly or indirectly from any negligent act or omission or willful misconduct on the part of Landlord,

 

    	 	55	 

     

    

 

(m)       amounts otherwise includable in Operating Expenses but reimbursed to Landlord directly by Tenant or other tenants (other than
through provisions similar to this Article 50),

 

(n)       to the extent any costs includable in Operating Expenses are incurred with respect to both the Building and other properties (including,
without limitation, salaries, fringe benefits and other compensation of Landlord’s personnel who provide services to both
the Building and other properties), there shall be excluded from Operating Expenses a fair and reasonable percentage thereof which
is properly allocable to such other properties,

 

(o)       the cost of providing any service provided by first-class managing agents of comparable office buildings in Manhattan which is
customarily included in the management fees,

 

(p)       the cost of acquiring or replacing any separate electrical submeter Landlord may provide to any of the tenants in the Building,

 

(q)       any interest, fine, penalty or other late charges payable by Landlord and incurred as a result of late payments, except to the
extent the same was incurred with respect to a payment, part or all of which, was the responsibility of Tenant hereunder and with
respect to which Tenant did not make a payment in a timely fashion or did not make same at all,

 

(r)        any compensation paid to clerks, attendants or other persons in commercial concessions operated by Landlord,

 

(s)       costs of acquiring, leasing, insuring, restoring, ·removing or replacing (a) sculptures (other than planters and benches),
(b) paintings and (c) other objects of art located within or outside the Building, except for the cost of routine maintenance
of such objects in the public areas in the Building,

 

(t)       costs incurred to remedy violations of legal requirements that arise by reason of Landlord’s negligent or willful failure
to construct, maintain or operate the Building or any part thereof in compliance with such legal requirements (excluding the costs
of permits and approvals required to comply with legal requirements in the ordinary course of the operation of the Property),

 

(u)       expenses
allocable directly and solely to the retail space of the Building (including, without limitation, plate glass insurance for retail
space),

 

(v)       the cost of repairs or replacements or restorations by reason of fire or other casualty or condemnation,

 

(w)       the cost paid or incurred in connection with the removal, replacement, enclosure, encapsulation or other treatment of any Hazardous
Materials in the Building, other than the cost of customary office cleaning materials and supplies and materials and supplies
used in connection with operation of the Building Systems which, in each case, used and stored in

 

    	 	56	 

     

    

 

compliance with all
applicable Requirements and the removal of Hazardous Materials installed by Tenant,

 

(x)       costs incurred by Landlord for the performance of any sundry services to a particular tenants,

 

(y)       costs (including, without limitation, any taxes or assessments) of any revenue generating signs or other tenant’s or occupant’s
signs,

 

(z)       expenditures
for repairing and/or replacing any defect in any work performed by Landlord pursuant to the provisions of this Lease,

 

(aa)     insurance premiums, but only if and to the extent that Landlord is specifically entitled to be reimbursed therefor by Tenant pursuant
to this Lease (other than pursuant to this Article) or by any other tenant or other occupant of the Building pursuant to its lease
(other than pursuant to an operating expenses escalation clause contained therein),

 

(bb)     the cost of any item for which Landlord is reimbursed by insurance or otherwise compensated including reimbursement by any tenant,
or for which Landlord would have been reimbursed had Landlord carried such insurance (provided that such insurance was required
by the terms of this Lease), less any deductible commensurate with such insurance policy,

 

(cc)     payments of any amounts to any person seeking recovery for negligence or other torts committed by Landlord,

 

(dd)     costs to perform work or to provide services for any tenant of the Building, but only if and to the extent that the same is in
excess of that which Landlord furnishes generally (with no additional expense) to the tenants (including Tenant) of the Building,

 

(ee)     the costs of any expansions to the rentable area of the Building after the date of this Lease and any costs arising therefrom
and the costs (including the increased Operating Expenses related thereto) of any additions to the Building, such as the addition
of floors thereto, excluding or other structures adjoining the Building, or connecting or disconnecting the Building to other
structures adjoining the Building,

 

(ff)      any costs incurred in connection with the transfer or sale of any interest in the Building, Land or any Underlying Lease, including
any transfer, deed, mortgage recording or gains taxes payable by Landlord,

 

(gg)     legal fees incurred in the enforcement of any leases in the Building or in defending any suits brought by tenants in the Building
and other legal fees (other than legal fees incurred in connection with the maintenance or operation of the Building or Land),

 

(hh)     the
cost of any work or services performed or other expenses incurred in connection with installing, operating and maintaining any
special service or facility in other than a public

 

    	 	57	 

     

    

 

or
common area. of the Building, such as an observatory, broadcasting facility or any luncheon, athletic or recreational club; provided,
however, that this exclusion shall not apply to the cost of heat, cleaning or other services furnished to an area of space leased
to a tenant (other than Landlord or an affiliate of Landlord) and used by such tenant for such purposes unless Tenant cleans or
pays separately for such service,

 

(ii)       costs incurred by Landlord in connection with Landlord’s breach of any of Landlord’s covenants, agreements or indemnities
expressly made in this Lease,

 

(jj)       any amount incurred to a company or other entity affiliated with Landlord to the extent that the same exceeds the amount which
would have been incurred on a fair market basis in the absence of such affiliation; and

 

(kk)       Building
Insurance Expenses.

 

50.03       If Landlord shall purchase any item of capital equipment or make any capital expenditure designed to result in savings or reductions
in Expenses, then the costs for same shall be included in Expenses. The costs of capital equipment or capital expenditures are
so to be included in Expenses for the Comparative Year in which the costs are incurred and subsequent Comparative Years, on a
straight line basis, to the extent that such items are amortized over such period of time as reasonably can be estimated as the
time in which such savings or reductions in Expenses are expected to equal Landlord’s costs for such capital equipment or
capital expenditure, with an interest factor equal to the prime rate of JP Morgan Chase, New York, (or the successor thereto)
at the time of Landlord’s having incurred said costs. If Landlord shall lease any such item of capital equipment designed
to result in savings or reductions in Expenses, then the rentals and other costs paid pursuant to such leasing shall be included
in Expenses for the comparative year in which they were incurred.

 

50.04       If during
all or part of the Base Year or any Comparative Year, Landlord shall not furnish any particular item(s) of work or service (which
would constitute an Expense hereunder) to portions of the Building Project due to the fact that such portions are not occupied
or leased, or because such item of work or service is not required or desired by the tenant of such portion such tenant is itself
obtaining and providing such item of work or service, or for other reasons, then, for the purposes of computing the Additional
Rent payable hereunder, the amount of the Expenses for such item for such period shall be increased by an amount equal to the
additional operating and maintenance expenses which would reasonably have been incurred during such period by Landlord if it had
at its own expense furnished such item of work or services to such portion of the Building Project provided Landlord furnishes
such item or service for Tenant.

 

50.05       If the Expenses for any Comparative Year shall be greater than the Expenses for the Base Year, Tenant shall pay to Landlord, as
Additional Rent for such Comparative Year, in the manner hereinafter provided, an amount equal to the Percentage of the excess
of the Expenses for such Comparative Year over the Expenses for the Base Year (such amount being hereinafter called the “Expense
Payment”). If the Building Insurance Expenses for any Comparative Insurance Year shall be greater than the Base Insurance
Expenses, Tenant shall pay to Landlord, as Additional Rent for such Comparative Insurance Year, in the manner hereinafter provided,
an amount equal to the Percentage of

 

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the excess of the Building Insurance
Expenses for such Comparative Insurance Year over the Base Insurance Expenses (such amount being hereinafter called the “Insurance
Expense Payment”).

 

50.06       Following
the expiration of each Comparative Year and Comparative Insurance Year, and after receipt of necessary information and computations
from Landlord’s certified public accountant, Landlord shall submit to Tenant no later than May 1 following each Comparative
Year a certified statement or statements, as hereinafter described, setting forth the Expenses for the preceding Comparative Year,
and the Expense Payment, if any, due to Landlord from Tenant for such Comparative Year, and a statement setting forth the Base
Insurance Expenses and the Insurance Expense Payment, if any, due to Landlord from Tenant for such Insurance Comparative Year.
The rendition of any such statement to Tenant shall constitute prima facie proof of the accuracy thereof and, if such statement
shows an Expense Payment and/or Insurance Expense Payment due from Tenant to Landlord, or a refund from Landlord to Tenant, as
the case may be, with respect to the preceding Comparative Year and/or Comparative Insurance Year, then (i) Tenant shall make
payment of any unpaid portion thereof within thirty (30) days after receipt of such statement, or in the case of a refund to Tenant,
Landlord shall credit any overpayment by Tenant towards the next monthly installment of Rent accruing under the Lease (unless
the Lease term has expired and Tenant has vacated the Premises in compliance with the terms and conditions of this Lease, then
Landlord shall make any refund payment within the said thirty (30) day period); and (ii) Tenant shall also pay Landlord, as Additional
Rent within thirty (30) days after receipt of such statement, an amount equal to the product obtained by multiplying the Expense
Payment and/or Insurance Expense Payment for the Comparative Year or the Comparative Insurance Year, as the case may be, by a
fraction, the denominator of which shall be 12 and the numerator of which shall be the number of months of the current Comparative
Year or Comparative Insurance Year, as the case may be, which shall have elapsed prior to the first day of the month immediately
following the rendition of such statement; and (iii) Tenant shall also pay to Landlord, as Additional Rent, commencing as of the
first day of the month immediately following the rendition of such statement and on the first day of each month thereafter until
a new statement is rendered an amount equal to l/12th of the total Expense Payment for the preceding Comparative Year and/or l
/12th of the total Insurance Expense Payment for the preceding Comparative Insurance Year. The aforesaid monthly payments based
on the total Expense Payment for the preceding Comparative Year or the total Insurance Expense Payment for the preceding Comparative
Insurance Year, as the case may be, shall from time to time be adjusted to reflect, if Landlord can reasonably so estimate not
to exceed one hundred and five percent (105%) of such prior year’s Expense payment, known increases in rates or cost, for
the current Comparative Year or the current Comparative Insurance Year, as the case may be, applicable to the categories involved
in computing Expenses or Building Insurance Expenses, whenever such increases become known prior to or during such current Comparative
Year or the current Comparative Insurance Year, as the case may be. The payments required to be made under (ii) and (iii) above
shall be credited toward the Expense Payment or the Insurance Expense payment due from Tenant for the then current Comparative
Year or the current Comparative Insurance Year, as the case may be, subject to adjustment as and when the statement for such current
Comparative Year or the current Comparative Insurance Year is rendered by Landlord.

 

50.07       A.       The statements of the Expenses and the Building Insurance Expenses to be furnished by Landlord as provided above shall be certified
by Landlord, and shall be prepared in reasonable detail and based on information and computations made for the Landlord by a Certified

 

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Public Accountant
(who may be the CPA now or then employed by Landlord for the audit of its accounts):said Certified Public Accountant may rely
on Landlord’s allocations and estimates wherever operating cost allocations or estimates are needed for this Article. The
statements thus furnished to Tenant shall constitute a final determination as between Landlord and Tenant of the Expenses for
the periods represented thereby, unless Tenant within one hundred and eighty (180) days after they are furnished shall give notice
to Landlord that it disputes their accuracy or their appropriateness, which notice shall specify the particular respects in which
the statement is inaccurate or inappropriate or, in the event that such statement does not itemize or provide reasonable supporting
documentation for the increase in such Expenses and Building Insurance Expenses, then such notice shall be accompanied by a statement
from an independent, third party real estate professional with at least ten (10) years experience in commercial office leasing
and/or management in midtown Manhattan, indicating with reasonable detail the basis under the circumstances for such dispute such
as, for example, a comparison of those Expenses or Building Insurance Expenses to those of various other Buildings of comparable
age, class and character in midtown Manhattan. Pending the resolution of any such dispute, Tenant shall pay the Additional Rent
to Landlord in accordance with the statements furnished by Landlord.

 

B.       Provided that (a) notice is given by Tenant in a timely fashion under Section A, above that Tenant desires to review Landlord’s
Records (as defined below), and (b) all Additional Rent is timely and fully paid by Tenant to Landlord in accordance with the
statements furnished to Tenant under this Article; Landlord shall grant an independent certified public accountant retained by
Tenant reasonable access to so much of Landlord’s books and records as may be reasonably required (the ’‘Records”)
for the purposes of verifying the Expenses and the Building Insurance Expenses incurred for the Comparative Year or the Comparative
Insurance Year then just ended, as the case may be, (hereinafter, an “Audit”) during normal business hours
at the place where they are regularly maintained in New York, New York, for a period of forty five (45) days from the date notice
is given by Tenant under Section A of this Article. Tenant and its independent certified public accountant shall execute a confidentiality
agreement prepared by Landlord prior to the time access to the Records is given.

 

C.       In the event that Tenant, after having reasonable opportunity to examine the Records (but in no event more than one hundred eighty
(180) days from the date on which the Tenant sends to Landlord notice of such dispute), shall disagree with the Landlord’s
Statement, then Tenant may send a written notice (“Tenant’s Statement”) to Landlord of such disagreement,
specifying in reasonable detail the basis for Tenant’s disagreement and the amount of Expense Payment or Building Insurance
Expense Payment, as the case may be, Tenant claims is due. Landlord and Tenant shall attempt to adjust such disagreement. If they
are unable to do so within thirty (30) days, and provided that the amount Tenant claims is due is substantially different from
the amount Landlord claims is due (the term “substantially” as used herein, shall mean a variance of five (5%) percent
or more) Landlord and Tenant shall together designate an independent, third party certified public accountant (the “Arbiter”)
whose determination made in accordance herewith shall be binding upon the parties; it being understood that if the amount Tenant
claims is due is not substantially different from the amount Landlord claims is due, then Tenant shall have no right to further
dispute or protest such amount and shall pay the amount that Landlord claims is due to the extent not theretofore paid. If the
determination of Arbiter shall substantially confirm the determination of Landlord, then Tenant shall pay the cost of the Arbiter.
If the Arbiter shall

 

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substantially confirm the determination
of Tenant, then Landlord shall pay the cost of the Arbiter. In all other events, the cost of the Arbiter shall be borne equally
by Landlord and Tenant. The Arbiter shall be a member of an independent certified public accounting firm having at least three
(3) accounting professionals and having at least ten (10) years of experience in real estate accounting for commercial office
buildings in midtown Manhattan. In the event that Landlord and Tenant shall be unable to agree upon the designation of the Arbiter
within thirty (30) days after receipt of notice from the other
party requesting agreement as to the designation of the Arbiter, which notice shall contain the names and addresses of two or
more such certified public accountants who are acceptable to the party sending such notice (any one of whom, if acceptable to
the party receiving such notice as shall be evidenced by notice given by the receiving party to the other party within such thirty
(30) day period, shall be the agreed upon Arbiter), then either party shall have the right to request the AAA or any successor
thereto to designate as the Arbiter in accordance with the foregoing required qualifications, whose determination made in accordance
herewith shall be conclusive and binding upon the parties, and the cost charged by the AAA or any successor thereto for designating
such Arbiter shall be borne equally by Landlord and Tenant Landlord and Tenant hereby agree that any determination made by an
Arbiter designated pursuant to this Article shall not exceed the amount(s) as determined to be due in
the first instance by Landlord’s Statement, nor shall such determination be less than the amount(s) claimed to be
due by Tenant’s Statement, and that any determination which does not comply with the foregoing shall be null and void and
not binding on the parties. In rendering such determination such Arbiter shall not add to, subtract from or otherwise modify the
provisions of this Lease, including the immediately preceding sentence. Notwithstanding the foregoing provisions of this section,
Tenant, pending the resolution of any contest pursuant to the terms hereof, shall continue to pay all sums as determined to be
due in the first instance by such Landlord’s Statement and upon the resolution of such contest, suitable adjustment shall
be made in accordance therewith with appropriate refund to be made promptly thereafter by Landlord to Tenant (or credit extended
to Tenant promptly thereafter against the monthly installments of Fixed Annual Rent next becoming due under this Lease until such
credit is exhausted) if required thereby.

 

50.08       In no
event shall the Fixed Annual Rent under this Lease be reduced by virtue of this Article.

 

50.09       Landlord’s and Tenants obligation to make adjustments as provided for above in this Article shall survive any expiration
or termination of this Lease.

 

50.10.      Any delay or failure of Landlord in billing any escalation hereinabove provided shall not constitute a waiver of or in way impair
the continuing obligation of Tenant to pay such escalation hereunder. Landlord shall deliver to Tenant the final statement of
the Expenses and the Building Insurance Expenses hereunder no later than twenty-four (24) months after the expiration of the Term
of this Lease or twenty-four (24) months following the sooner termination of this Lease and any sums due hereunder and not set
forth by Landlord in a statement delivered within said twenty-four
(24) month period shall be deemed waived by Landlord.

 

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ARTICLE
51

 

RETAIL
SPACE USE IN THE BUILDING

 

51.01       For so long as this Lease shall remain in full force and effect, Landlord shall not permit any of the retail space in the Building
to be used for (i) the sale or display of merchandise of obscene or pornographic material, or for live nude or semi-nude performances,
nude modeling, rap sessions, or as a so-called “rubber goods” store, or as a sex club of any sort, or as a “massage
parlor”; (ii) a gambling or gaming establishment or casino (i.e., OTB); (iii) a barber or beauty shop; (iv) a school of
any kind or an employment or placement agency; (v) a funeral parlor; (vi) medical or psychiatric offices or medical care clinic;
(vii) nightclub or fraternal organizations; or (viii) any immoral or illegal purpose. Pornographic material is defined as any
written or pictorial matter with prurient appeal or any objects or instruments that are primarily concerned with lewd or prurient
sexual activity. Obscene material shall have the same meaning ascribed to i t under Penal Law Section 235.00.

 

ARTICLE
52

 

RENEWAL
OPTION

 

52.01       Tenant shall have the option (the “Renewal Option”) to extend the term of this Lease for one (l) renewal term
of five (5) years (the “Renewal Term”) which shall commence on the date immediately succeeding the expiration
of the Term, provided that on the Renewal Notice Date (as hereinafter defined) and on the commencement date of the Renewal Term
(i) this Lease shall be in full force and effect; and (ii) Tenant shall not be in default of this Lease after notice (in which
event Tenant’s rights under this Article shall be suspended until the earlier of (a) Tenant’s timely and full cure
of the default alleged in such notice, at which time Tenant’s obligations hereunder shall be reinstated, and (b) the expiration
of Tenant’s time in which to cure such default, at which time Tenant’s rights hereunder shall be extinguished). The
Renewal Option may be exercised with respect to the entire Premises only and shall be exercisable by the Tenant delivering to
Landlord a notice (the “Renewal Notice”) no later than the date (the “Renewal Notice Date”)
that is one hundred eighty (180) days prior to the expiration of the Term. In the event that Tenant fails to give the Renewal
Notice by the Renewal Notice Date, the Named Tenant shall be deemed to have waived its Renewal Option. Time is of the essence
with respect to the giving of the Renewal Notice. Landlord shall have the right, in its sole discretion, to waive any or all of
the foregoing conditions to Tenant’s exercise of the Renewal Option. Upon the giving of the Renewal Notice or in the event
that the Renewal Option shall be waived, or deemed waived pursuant to the terms hereof, the Tenant shall have no further right
or option to extend or renew the term of this Lease.

 

52.02       If Tenant exercises the Renewal Option, the Renewal Term shall be upon the same terms, covenants and conditions as those contained
in this Lease, except that (i) the Fixed Annual Rent shall be
determined pursuant to Section 52.03 hereof, (ii) the Base Tax Year as set forth in
Article 32 shall mean the New York City Real Estate Tax Year during which occurs the first day of the Renewal Term, and
(iii) the Base Year as set forth in Article 50 shall mean the calendar year during which occurs the first day of the Renewal Term,
and (iv) the provisions of Articles 22, 52, 54, and 55 shall not be applicable during the Renewal Term.

 

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52.03       Fixed
Annual Rent during the Renewal Term shall be based upon the Fair Market Rent for the Premises, determined as follows. For purposes
of determining the fair market rent payable per annum for each Renewal Term (“Fair Market Rent”), the following
procedure shall apply:

 

(1)       the Fair Market Rent shall be determined on the basis of the annual rent that an unrelated third party (a “Third Party
Tenant”) would be willing to pay for the Premises for a term commencing on the first day of such Renewal Term and expiring
five (5) years thereafter, assuming that (i) the Premises are free and clear of all leases and tenancies (including this Lease),
that (ii) the Premises are available in the then rental market for comparable office buildings in Manhattan, (iii) Landlord has
had a reasonable time to locate a Third Party Tenant who rents with the knowledge of the uses.to which the Premises can be adopted,
(iv) neither Landlord nor such Third Party Tenant is under any compulsion to rent; (v) Landlord shall not be obligated to perform
any work in the Premises to prepare the same for such Third Party Tenant’s occupancy; (vi) such Third Party Tenant shall
not be entitled to any work contribution, cash allowance, moving allowance, free rent period, or any other tenant inducement,
notwithstanding the fact that one or more of such tenant inducements may commonly be available to prospective tenants at such
time, (vii) such Third Party Tenant shall not have any renewal or expansion rights, (viii) such Third Party Tenant shall accept
the Premises in their then “as is” condition with the existing leasehold improvements and layout to be inherited by
such Third Party Tenant, (ix) the fact that Landlord would be required to pay one full brokerage commission to an outside broker
and.one-half brokerage commission to its managing agent in connection with such leasing to a Third Party Tenant and (x) that Additional
Rent for all escalations under the Lease shall continue to be paid by Tenant during such Renewal Term.

 

(2)       Landlord, no less than ninety (90) days prior to the date set for the commencement of the Renewal Term shall deliver to Tenant
a notice setting forth Landlord’s determination of the fair market rent for the Premises (“Landlord’s Determination”).
If Landlord shall refuse to give such notice as aforesaid, Landlord’s Determination shall be deemed to be equal to the Fixed
Annual Rent payable by Tenant as of the expiration of the term of this Lease immediately prior thereto. Tenant, within thirty
(30) days after its receipt of Landlord’s Determination, or Landlord’s refusal to give Landlord’s Determination,
shall give a notice to Landlord setting forth Tenant’s determination of the fair market rent for the Premises (“Tenant’s
Determination”). If neither Landlord nor Tenant shall deliver a determination as aforesaid, the Fixed Annual Rent for
the Premises shall be deemed to be equal to the Fixed Annual Rent payable by Tenant on the day prior to the Expiration Date. If
Landlord’s Determination and Tenant’s Determination are not equal, Landlord and Tenant shall attempt to agree upon
the Fair Market Rent for the Premises. If Landlord and Tenant shall mutually agree upon the determination of the Fair Market Rent,
their determination (the “Mutual Determination”) shall be the Fixed Annual Rent for the Premises and shall
be final and binding upon the parties.

 

(3)       If
Landlord and Tenant shall be unable to reach a Mutual Determination within thirty (30) days after delivery of each of their respective
Determinations to the other Party, Landlord and Tenant shall jointly select an independent real estate appraiser (the “Appraiser”)
whose fee shall be borne equally by Landlord and Tenant. In _the event that Landlord and Tenant shall be unable to jointly agree
on the designation of the Appraiser within five (5) days

 

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after they
are requested to do so by either party, then the parties agree to allow the AAA, or any successor organization to designate the
Appraiser in accordance with the rules, regulations and/or procedures then obtaining of the AAA or any successor organization.
Landlord and Tenant shall, within five (5) days after the designation of the Appraiser, submit to the Appraiser in sealed envelopes,
their respective determinations of the Fair Market Rent for the Premises (“Landlord’s Arbitration Determination”
and “Tenant’s Arbitration Determination”, respectively). Neither Landlord nor Tenant shall be bound by
Landlord’s Determination or Tenant’s Determination and Landlord’s Determination and Tenant’s Determination
shall not be revealed to or taken into account by the Appraiser. The Appraiser shall not open the sealed envelopes and/or reveal
to either party Landlord’s Arbitration Determination or Tenant’s Arbitration Determination until the Appraiser bas
received both Landlord’s Arbitration Determination and Tenant’s Arbitration Determination.

 

(4)       The Appraiser shall conduct such hearings and investigations as be may deem appropriate and shall, within thirty (30) days after
the date of designation of the Appraiser, issue a written report delivered to both Landlord and Tenant selecting either Landlord’s
Arbitration Determination or Tenant’s Arbitration Determination and setting forth the rationale for such choice, and such
choice by the Appraiser shall be conclusive and binding upon Landlord and Tenant. Each party shall pay its own counsel fees and
expenses, if any, in connection with any arbitration under this Article. The Appraiser appointed pursuant to this Article shall
be an independent real estate appraiser with at least ten (10) years experience in leasing and valuation of properties which are
similar in character to the Building, with an MAI designation and a member of the American Institute of Appraisers of the National
Association of Real Estate Boards and a ·member of the Society of Real Estate Appraisers. The Appraiser shall not have
the power to add to, modify or change any of the provisions of this Lease.

 

(5)       It is expressly
understood that any determination of the Fair Market Rent shall be based on the criteria stated in this Article.

 

ARTICLE
53

 

RIGHTS
OF PURCHASE

 

53.01       (a)       In the event that during the original Term hereof, Landlord shall make the Building available for purchase to the general
public (each such instance, during the original Term, for which Landlord’s entire interest in the Building is available
to the general public continuously and without interruption for purchase being an “Availability Period”), then
Landlord have the recurring obligation during each Availability Period to give notice to the Named Tenant of such availability
and shall offer the Building to Named Tenant at a purchase price determined by Landlord, in Landlord ’s sole discretion
(the “ROFO Notice”). In the event that the
ROFO Notice is given by Landlord, and provided that (1) Tenant is not in default of any of its material obligations under this
Lease after notice (in which event Tenant’s rights under this Article shall be suspended until the earlier of (i) Tenant’s
timely and full cure of the default alleged in such notice, at which time Tenant’s obligations hereunder shall be reinstated,
and (ii) the expiration of Tenant’s time in which to cure such default, at which time Tenant’s rights hereunder with
respect to Artic1e 53 shall

 

    	 	64	 

     

    

 

be extinguished)
(a) as of the date of the giving of the ROFO Notice, or (b) at the time of exercise of Tenant’s rights under this Article;
and (2) the Named Tenant shall occupy no less than seventy five (75%) percent of the Premises for the conduct of its business
(as opposed to mere lawful possession) in accordance with and subject to Article 2 hereof, then the Named Tenant shall have the
right to purchase the Building on the terms and in strict compliance with the conditions set forth below and at the purchase price
set forth in the ROFO Notice and on such additional terms as shall be negotiated by the parties in good faith (the “ROFO
Purchase Option”). Notwithstanding anything to the contrary set forth above, Landlord shall have the right, in its sole
discretion, to waive any conditions to the ROFO Purchase Option under the provisions of this Article.

 

(b)       Subject to the other provisions of this Article, Named Tenant shall give Landlord notice of its election to exercise its ROFO
Purchase Option hereunder no later than fourteen (14) days following the date upon which Landlord’s First Offer to the Named
Tenant. Time shall be of the essence in. connection with the exercise by Named Tenant of its ROFO Purchase Option.

 

(c)       In
the event Tenant shall fail to timely and properly notify Landlord of its election to exercise the ROFO Purchase Option within
the time period as provided in Section 53.0l(b) above, Named Tenant shall be deemed conclusively to have waived its rights to
purchase the Building hereunder during that particular Availability Period and Tenant shall not have any further rights under
this Article for that particular Availability Period or be entitled to any right, remedy or relief under this Lease as a consequence
thereof including, without limitation, any right of set-off, credit, abatement or termination in connection with such ROFO Purchase
Option or Availability Period. Named Tenant agrees upon request of Landlord to confirm such waiver and non-exercise in writing;
however, failure to do so by Named Tenant shall not operate to revive any rights of Named Tenant under this Article. Notwithstanding
anything to the contrary contained in this Article, Tenant shall retain its rights under this Article to purchase the Building
for any subsequent Availability Periods.

 

53.02       (a)       In
the event that Named Tenant has rejected its ROFO Purchase Option, and Landlord receives a bona fide offer from an
independent, qualified, third party during the Term of this Lease and during an Availability Period, which is more than ten
(10%) percent below the purchase price set forth in the ROFO Notice for that particular Availability Period (the
“3rd Party Offer”) and which is acceptable to Landlord for the purchase of the Building, Landlord agrees
to give notice to Named Tenant of such 3rd Party Offer (the “ROFR Notice”). Landlord and Tenant
acknowledge and agree that Landlord shall not be required to give Tenant notice of any bona fide offer from a third party
during the Term of this Lease and during an Availability Period, which is within ten (10%) percent of the purchase price set
forth in the ROFO Notice for the applicable Availability
Period. In the event that a ROFR Notice is given by Landlord,
and provided that (1) Tenant is not in default of any of its material obligations under this Lease after notice (in which
event Tenant’s rights under this Article shall be suspended until the earlier of (i) Tenant’s timely and full
cure of the default alleged in such notice, at which time Tenant’s obligations hereunder shall be reinstated, and (ii)
the expiration of Tenant’s time in which to cure such default, at which time Tenant’s rights hereunder with
respect to Article 53 shall be extinguished) (a) as of the date of the giving of the ROFR Notice, or (b) at the time of
exercise of Tenant’s rights under this Article; and

 

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(2) the
Named Tenant shall occupy no less than seventy five (75%) percent of the Premises for the conduct of its business (as opposed
to mere lawful possession) in accordance with and subject to Article 2 hereof, then Named Tenant shall have the right to purchase
the Building on the terms, covenants and conditions identical to those contained in the ROFR Notice and on the terms and in
strict compliance with the conditions set forth below and o.n such additional terms as shall be negotiated by the parties
in good faith (the “ROFR Purchase Option”). Notwithstanding anything to the contrary set forth above, Landlord
shall have the right, in its sole discretion, to waive any conditions to the ROFR Purchase Option under the provisions of this
Article.

 

(b)       Subject to the other provisions of this Article, Named Tenant shall give Landlord notice of its election to exercise its ROFR
Purchase Option hereunder no later than fourteen (14) days following the date upon which Landlord’s ROFR Notice to Named
Tenant is given. Time shall be of the essence in connection with the exercise by Named Tenant of its ROFR Purchase Option.

 

(c)       In the event Tenant shall fail to timely and properly notify Landlord of its election to exercise the ROFR Purchase Option within
the time period as provided in Section 53.02(b) above, Named Tenant shall be deemed conclusively to
have waived its rights to purchase the Building hereunder during that particular Availability Period and Tenant shall not
have any further rights under this Article for that particular Availability Period or be entitled to any right, remedy or relief
under this Lease as a consequence thereof including, without limitation, any right of set-off, credit, abatement or termination
ROFR Purchase Option or Availability Period. Named Tenant agrees upon request of Landlord to confirm such waiver and non-exercise
in writing; however, failure to do so by Named Tenant shall not operate to revive any rights of Named Tenant under this Article.
Notwithstanding anything to the contrary contained in this Article, Tenant shall retain its rights under this Article to purchase
the Building for any subsequent Availability Periods.

 

53.03       In
the event that Named Tenant properly and timely exercises its ROFO Purchase Option or ROFR Purchase Option, as the case
may be, under this Article, then within twenty (20) days thereafter, Landlord and Named Tenant shall each exercise diligent efforts
to negotiate in good faith a contract of sale, to be prepared by Landlord’s counsel, for the purchase of the Building by
Named Tenant at the purchase price set forth in the ROFO Notice or the ROFR Offer, as the case may be, and upon such other terms
as are contained in this Article and on such additional terms as shall be negotiated by the parties in good faith.

 

53.04       1n the event that notwithstanding the exercise of diligent efforts and good faith negotiation by Landlord and Named Tenant, they
cannot agree on all material terms of a contract of sale hereunder acting reasonably and in good faith within said twenty (20)
day period, then the ROFO Purchase Option or the ROFR Purchase Option, as the case may be, shall be of no further force and effect,
and Landlord shall be under no obligation to make the Building available for sale to Named Tenant pursuant to the provisions of
this Article or otherwise, Landlord shall be free to sell the Building to anyone or no one at any and all times thereafter, in
its sole discretion, and upon such terms as Landlord may determine, in its sole discretion, and Tenant shall not have any further
rights under this Article or be entitled to any right, remedy or relief under this Lease as a consequence thereof including, without
limitation, any right of set-off, credit, abatement or termination

 

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53.05       In the event that Landlord and Named Tenant shall timely and successfully negotiate and agree upon all material terms of a contract
of sale in accordance with the provisions of this Article, then Landlord shall proceed in good faith to sell to Named Tenant,
and Named Tenant shall proceed in good faith to purchase from Landlord, the Building in accordance with and pursuant to the terms,
covenants and conditions of such contract of sale.

 

ARTICLE
54

 

COMMUNICATIONS
DISH OPTION

 

54.01       Landlord agrees that, at all times subject to and in compliance with all laws, ordinances, statutes, rules and regulations of
all governmental, quasi-governmental and public authorities and agencies having jurisdiction thereof, and further subject to the
conditions and limitations hereinafter stipulated, during the term of this Lease Tenant shall be entitled to install (hereinafter
called the “Communications Dish Option”), on a portion of the rooftop of the Building and thereafter maintain,
repair, and operate one (1) communications dish and a customary and reasonably required support structure (hereinafter referred
to collectively as the “Communications Dish”), which Communications Dish is intended to receive and/or send
signals on the roof of the Building incident to the conduct of Tenant’s permitted use of the Premises, provided and on condition
that: (i) at the time that Tenant shall exercise the Communications Dish Option, there shall be available on the roof a location
appropriate, in Landlord’s reasonable judgment, for the Communications Dish, which shall not then be encumbered by any option
or right given by Landlord to any other third parties to use or occupy such space, and which is not intended for the installation
of any equipment by Landlord, and which location would not, after the installation of the Communications Dish, interfere with
the installation, operation or maintenance of any other antenna, dishes or equipment theretofore installed on the roof of the
Building (such location is hereinafter called the “Communications Dish Area”), it being understood and agreed
that if, in Landlord’s reasonable judgment, no such appropriate location exists, then Landlord shall give Tenant notice
upon the next availability of a Communications Dish Area, and Tenant shall have the right to thereafter install a Communications
Dish in accordance with the provisions hereof; (ii) the size and dimensions of the Communications Dish as well as the location
of the portion of the rooftop for such installation shall be subject to Landlord’s prior written consent, such consent not
to be unreasonably withheld or delayed; (iii) the Communications Dish shall not extend higher than the parapet of the roof of
the Building; (iv) the Communications Dish shall be placed within the Communications Dish Area; (v) the installation, maintenance
and position of such Communications Dish shall comply with laws, ordinances, statutes, rules and regulations of all governmental,
quasi-governmental and public authorities and agencies having jurisdiction thereof; (vi) the installation of any electrical or
communications lines (“Wiring”) in connection with the installation and operation of the Communications Dish,
as well as the manner and location (i.e., routing) of all Wiring in connection therewith shall (a) be at Tenant’s sole cost
and expense, and (b) be subject to Landlord’s prior written consent, such consent not to be unreasonably withheld or delayed;
(vii) the Communications Dish, Communications Dish Area and Wiring shall be maintained, operated and kept in good repair by Tenant,
at Tenant’s sole cost and expense; and (viii) Tenant shall not install the Communications

 

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Dish without
Landlord’s prior written approval of (a) the manner of such installation and (b) detailed plans and specifications for such
installation, such approval not to be unreasonably withheld or delayed. The parties agree that Tenant’s use of the rooftop
of the Building is a nonexclusive use and Landlord may permit the use of any other portion of the roof to any other individual
or entity for any reasonable use whatsoever.

 

54.02       Tenant shall exercise the Communications Dish Option by giving Landlord written notice thereof (hereinafter called “Tenant’s
C.D. Option Notice”) at any time during the term of this Lease. Such notice shall include specifications for the Communications
Dish and the proposed manner of mounting same in the Communications
Dish Area. Landlord shall reasonably promptly thereafter give Tenant notice of whether or not a Communications Dish Area is then
available. In the event that a Communications Dish Area is available for Tenant, or when such Communications Dish Area next becomes
available, then the following provisions of this Article shall apply.

 

54.03       There shall be no Fixed Annual Rent or Additional Rent payable by Tenant in connection with the exercise by Tenant of the Communications
Dish Option.

 

54.04       For the purpose of installing, servicing and/or repairing the Communications Dish and related equipment, Tenant shall have access
to the rooftop of the Building upon prior reasonable request to Landlord. All access by Tenant to the rooftop of the Building
shall be subject to the supervision and control of Landlord and to Landlord’s reasonable safeguards for the security and
protection of the Building, the Building equipment and installations and equipment of other tenants of the Building as may be
located on the rooftop of the Building. Landlord shall have the right to assign a Building representative to be present during
the duration of Tenant’s access to the rooftop and Tenant shall pay the Landlord’s reasonable, actual out of pocket
charges therefor within twenty (20) days of demand as Additional Rent under this Lease.

 

54.05       Tenant, at its sole cost and expense, agrees to promptly obey, observe and comply with all laws, ordinances, regulations, requirements
and rules of all governmental, quasi-governmental and public authorities and agencies having jurisdiction over Tenant’s
use of said rooftop as to the installation, repair, maintenance and operation of any support structures, the Communications Dish
and the Wiring erected or installed by Tenant pursuant to the provisions of this Article. Tenant, at its sole cost and expense,
shall secure and thereafter maintain all permits and licenses required for the installation and operation of the Communications
Dish including, without limitation, any approval, license or permit required from the Federal Communications Commission. In no
event shall the maximum level of microwave emissions from the Communications Dish exceed an amount equal to Tenant’s proportionate
share of the total microwave emissions allowable for the Building as determined by the governmental, quasi-governmental and public
authorities and agencies having jurisdiction thereof.

 

54.06       Tenant agrees that Tenant shall pay for all electrical service required for Tenant’s use of the Communications Dish and
related equipment erected or installed by Tenant pursuant to the provisions of this Article, in accordance with
Article 41 of this Lease, and Tenant further agrees that such electric service shall feed off the supply of electrical
energy furnished to the

 

    	 	68	 

     

    

 

Premises or by other available
means of Landlord as provided in Article 41 of this Lease.

 

54.07        The Communications Dish and all Wiring installed by Tenant in collection with the installation and operation of the Communications
Dish shall be Tenant’s personal property, and upon the expiration or earlier termination of this Lease, shall be removed
by Tenant at Tenant’s sole cost and expense. Tenant, at its sole cost and expense, shall promptly repair any and all damage
to the rooftop of the Building and to any other part of the Building caused by or resulting from the installation, maintenance
and repair, operation or removal of the Communications Dish and Wiring erected or installed by Tenant pursuant to the provisions
of this Article and shall promptly restore said affected areas to their condition as existed prior to the installation of the
Communications Dish.

 

54.08        Tenant agrees that Landlord shall not be required to provide any services whatsoever to the rooftop of the Building.

 

54.09        Tenant covenants and agrees that all installations made by Tenant on the rooftop of the Building or in any other part of the Building
pursuant to the provisions of this Article shall be at the sole risk of Tenant, and neither Landlord nor Landlord’s agents
or employees shall be liable for any damage or injury thereto caused in any manner, unless the same shall proximately result from
the negligence or willful misconduct of Landlord, its agents and employees.

 

54.10       Tenant hereby indemnifies and agrees to save Landlord harmless from and against: (i) any and all claims; reasonable counsel fees,
demands, damages, expenses or losses by reason of any liens, orders, claims or charges resulting from any work done, or materials
or supplies furnished, in connection with the fabrication, erection, installation, maintenance and operation of the Communications
Dish and Wiring installed by Tenant pursuant to the provisions of this Article; and (ii) any and all claims, costs, demands, expenses,
fees or suits arising out of accidents, damage, injury or loss to any and all persons and property, or either, whomsoever or whatsoever
resulting from or arising in collection with the erection, installation, maintenance and operation and repair of the Communications
Dish and Wiring installed by Tenant pursuant to the provisions of this Article; except to the extent caused by the negligence
or willful misconduct of Landlord, or its agents or employees. Tenant shall obtain and thereafter maintain throughout the term
of this Lease and any renewals or extensions thereof, insurance coverage naming Landlord as an additional insured in such amount
and of such type as Landlord may reasonably require subject to the limitations containing in
Article 43 hereof.

 

54.11       All plans and specifications of Tenant’s work and installations to be performed by Tenant pursuant to the provisions of
this Article shall be subject to the prior written approval of Landlord, such approval not to be unreasonably withheld or delayed,
and shall be further subject to inspection and reasonable supervision by Landlord.

 

54.12       Tenant covenants and agrees that the Communications Dish and Wiring shall not interfere with or adversely affect any equipment,
installations, lines or machinery of the Building or, in the event that Tenant (including anyone claiming through Tenant) no longer
occupies the entire rentable portion of the Building, any other tenant or occupant of the Building, or user of the rooftop

 

    	 	69	 

     

    

 

including,
without limitation, any other pre-existing communications equipment in, on top of or otherwise outside the Building, or access
thereto for maintenance, repair or removal.

 

54.13       Tenant acknowledges being advised by Landlord that Landlord may have granted and may be granting to third parties various rights
and licenses to utilize various portions of the Building and rooftop thereof for the installation of microwave dishes, satellite
communications equipment, whip communications dishes and other communications equipment and related equipment (hereinafter all
of the foregoing are collectively referred to as “Other Communications Equipment”), provided that, so long
as Tenant is not in default under the Lease, such Other Communications Equipment installed after Tenant’s Dish shall not
interfere with Tenant’s Communications Dish or access thereto, and that, inasmuch as Landlord’s ability to facilitate
the installation and operation of such Other Communications Equipment will be of paramount importance to Landlord, Landlord shall
have the right, at any time and from time to time, during the term of this Lease, upon thirty (30) days’ prior written notice
to Tenant, to relocate, at Landlord’s sole cost and expense, the Communications Dish to other areas of the rooftop, as Landlord
in its sole discretion may determine so as to accommodate such Other Communications Equipment on the roof of the Building and
so as to eliminate, or avoid, problems of interference with respect to or between Other Communications Equipment now, or in the
future, installed on the roof or other areas of the Building. Such relocation shall, to the extent practicable, be performed during
hours other than Tenant’s regular business hours so as to minimize any disruption of Tenant’s normal business activities
and except for such downtime such relocation shall not prevent Tenant from using its Communications Dish for its original intended
purpose. Tenant shall cooperate with Landlord to effectuate the relocation of Tenant’s Communications Dish, support structures
and related equipment, as shall be required by Landlord.

 

54.14       Tenant
shall not be permitted to assign or transfer all or any portion of the rights granted to Tenant pursuant to this Article except
in connection with an assignment of this Lease to its permitted assigns in accordance with the terms of this Lease.

 

ARTICLE
55

 

LANDLORD’S
CONTRIBUTION

 

55.01       Tenant shall have prepared by a registered architect and/or a licensed professional engineer, at its sole cost and expense, and
submit to Landlord for its approval in accordance with the applicable provisions of the Lease, final and complete dimensioned
architectural, mechanical, electrical and structural drawings and specifications (“Cooling Tower Plans”) in
a form ready for use as construction drawings for the removal of the existing cooling tower serving the eight (8th)
through twelfth (12th) floors and penthouse portions of the Premises (the “‘Existing Cooling Tower”)
and the installation of a new cooling tower in its place (“Tenant’s Cooling Tower Work”); provided however,
that Tenant shall not be required to submit such Cooling Tower Plans to Landlord for its approval, provided that the new cooling
tower shall be identical in size, height, weight and tonnage, footprint, location, connection and manner of affixation to the
roof of the Building as the Existing Cooling Tower. The Cooling Tower Plans, if required, and all such work shall be effected
in accordance with all applicable provisions of the Lease at Tenant’s sole cost and expense. If and so long as Tenant is
not in default under the Lease, after notice and the expiration of the cure period

 

    	 	70	 

     

    

 

applicable
to such default hereunder, if any, subject to and in accordance with the provisions of this Article, Landlord shall contribute
up to the sum of $100,000.00 (“Landlord’s Contribution”) to the cost of labor and materials for the portion
of the Tenant’s Cooling Tower Work which constitutes Qualified Renovations. “Qualified Renovations” shall
be defined as the labor and materials used by Tenant to effect Tenant’s Cooling Tower Work in compliance with this Lease
after the date hereof and prior February 1, 2007. Without limitation, for purposes of this Article, Qualified Renovations shall
be deemed not to include and Landlord’s Contribution shall not be applied to the cost of interest, late charges, trade fixtures,
furniture, furnishings, equipment, professional fees, workstations, work surfaces (whether or not affixed to walls and/or convector
covers), related cabinetry, moveable business equipment or any personal property whatsoever, or to the cost of labor, materials
or services used to furnish or provide the same. Notwithstanding anything to the contrary contained herein, in the event that
Tenant shall be prevented from performing or timely completing Tenant’s Cooling Tower Work in accordance with the terms,
covenants and conditions of the Lease on or before February 1, 2007, by reason of strikes, lockouts, job actions, shortage or
unavailability of supplies, governmental laws or regulations, riots, terrorism, insurrections, wars, acts of war or Acts of God
(collectively “Force Majeure”), then, if and so long as Tenant, in good faith, uses reasonable efforts to comply
with and with due diligence proceeds to perform Tenant’s Cooling Tower Work and meet all such obligations and requirements
hereof, provided that Tenant gives to Landlord prompt written notice of both (i) its inability to perform and complete Tenant’s
Cooling Tower prior to February 1, 2007, and (ii) the restoration of Tenant’s ability to perform Tenant’s Cooling
Tower, then the period set forth in this Agreement for the performance of Tenant’s Cooling Tower Work shall be extended
by one (1) day for each day of a delay solely caused. by any such Force Majeure until Tenant is no longer so prevented to perform
Tenant’s Cooling Tower Work.

 

55.02       “Requisition” shall mean a request by Tenant for payment from Landlord for Qualified Renovations and shall
consist of an AIA 0702/703 form or other such documents and information from Tenant as Landlord may reasonably require to substantiate
the completion of, and payment for, such Qualified Renovations to which the Requisition relates (the “Work Cost”)
and shall include, without limitation, the following: an itemization of Tenant’s total construction costs, detailed by contractor,
subcontractors, vendors and materialmen; bills, receipts, lien waivers and releases from all contractors, subcontractors, vendors
and materialmen; architects’ and Tenant’s certification of completion, payment and acceptance, and all governmental
approvals and confirmations of completion for the portion of the Tenant’s. Cooling Tower Work theretofore completed and
for which Tenant seeks payment.

 

55.03       From time-to-time, but not more than once a month, Tenant may give Landlord a Requisition for so much of the Work Cost as arose
since the end of the period to which the most recent prior Requisition related, or, with respect to the first Requisition, for
the initial Work Cost.

 

55.04       A. If Tenant is not in default under this Lease, after notice and the expiration of the cure period applicable to such default
hereunder, if any, and provided that all documents and information required by Landlord have been provided, within thirty (30)
days after Landlord receives a Requisition, Landlord shall pay Tenant eighty five percent (85%) of the Work Cost reflected in
such Requisition (the “Reimbursement”) and shall withhold the remaining fifteen

 

    	 	71	 

     

    

 

percent
(15%) of Work Cost (the “Retainage”); and provided that Tenant is not in default under this Lease, after notice
and the expiration of the cure period applicable to such default hereunder, if any, within thirty (30) days after Tenant furnishes
Landlord with (x) a final, stamped set of “as-built” plans for the Premises which demonstrates that Tenant’s
Cooling Tower Work has been completed in accordance with plans and specifications first approved by Landlord and (y)
its final Requisition which demonstrates that Tenant’s Initial Alteration Work has been completed and paid for in
full by Tenant and (z) all documents and information required by Landlord, Landlord shall pay Tenant all the Retainages.

 

B.       In the event that Landlord shall refuse or fail to reimburse Tenant, within thirty
(30) days after the date upon which such Reimbursement is due, for any installment of Landlord’s Contribution to
which Tenant is entitled hereunder, and provided that (i) Tenant gives Landlord (Attn: Ralph Sitt) notice thereof, and (ii) Landlord
fails to so reimburse Tenant within twenty (20) days thereafter, and (iii) provided that at all relevant times Tenant is not in
default of this Lease after notice (in which event Tenant’s rights under this Section 55.04B shall be suspended until the
earlier of (a) Tenant’s timely and full cure of the default alleged in such notice, at which time Tenant’s rights
hereunder shall be reinstated, and (b) the expiration of Tenant’s time in which to cure such default without curing same,
at which time Tenant’s offset rights hereunder shall be extinguished, but without forfeiture of Tenant’s rights and
interest in Landlord’s Contribution or the right to judicially recover the same or credit therefor from Landlord), Tenant
may offset the amount of such Reimbursement against Fixed Annual Rent next becoming due under this Lease until such Reimbursement
is exhausted, provided further that Tenant’s notice to Landlord requesting Reimbursement hereunder shall state in bold,
uppercase letters on the first (1st) page thereof, the following:

 

TENANT
SHALL HAVE THE RIGHT TO OFFSET THE AMOUNT SPECIFIED HEREIN AGAINST THE FIXED ANNUAL RENT NEXT BECOMING DUE UNDER THE LEASE IN
THE EVENT YOU FAIL TO REIMBURSE SUCH AMOUNT TO TENANT WITHIN TWENTY (20) DAYS AFTER TIDS NOTICE SHALL HAVE BEEN GIVEN TO YOU.

 

Notwithstanding
anything to the contrary set forth above, Tenant shall not have any offset right against Fixed Annual Rent as set forth in this
Section 55.04, in the event and to the extent that Landlord shall give notice to Tenant within said twenty (20) day period that
such successor landlord disputes such request for Reimbursement, accompanied by a reasonably detailed description of the basis
for such dispute.

 

55.05       It is expressly understood and agreed that if the amount of Landlord ’s Contribution is less than the cost of Tenant’s
Cooling Tower Work, Tenant shall remain solely responsible for the payment and completion of, and in all events shall complete,
at its sole cost and expense, Tenant’s Cooling Tower Work on or before February 1, 2007, subject to Force Majeure. Any portion
of Landlord’s Contribution not disbursed shall be retained by Landlord.

 

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ARTICLE
56

 

EXISTING
PASSAGES TO 250 WEST 40TH STREET

 

56.01       Landlord
and Tenant acknowledge and agree that there currently exist passageways between the ninth (9th), tenth (l0th),
eleventh (11th), twelfth (12th) and penthouse portions of the Premises and the corresponding floors in the
building (the “250 Building”) at 250 West 40th Street, New York, New York (the “250 Passageways”)
which Tenant may use for ingress and egress to and from the 250 Building provided that (i) the 250 Passageways and Tenant use
thereof shall at all times be compliant with all applicable laws, ordinances, directions, rules and regulations of governmental
authorities having jurisdiction, (ii) Tenant shall indemnify and hold harmless Landlord, its directors, officers, members, partners,
employees, agents, and their respective successors and assigns from and against any and all claims, demands, costs, expenses,
awards and judgments arising out of, or resulting from Tenant’s use and maintenance of the 250 Passageways, (iii) the landlord
of the 250 Building permits Tenant such ingress and egress to and from the 250 Building, and (iv) in the event that Tenant is
no longer lawfully permitted to use the 250 Passageways, Tenant shall have no right to any abatement, credit or set-off against
Rent or to terminate this Lease. Tenant shall maintain, close or repair the 250 Passageways at anytime as Tenant deems necessary,
throughout the term of the Lease as well as install, maintain and repair wiring, cabling piping, conduit and other communications
and life safety equipment so that the adjacent premises in the 250 Building are connected to the Premises, provided that Tenant
shall:(i) comply with all laws, orders and regulations of any
governmental authority having or asserting jurisdiction over the Premises which shall impose any violation, order or duty upon
Landlord or Tenant with respect to the 250 Passageways or the use or occupancy thereof and (ii) perform all work in a good and
workman like manner and in compliance with all applicable provisions of this Lease. Tenant shall, at its sole cost and expense,
maintain 250 Passageways in good condition and repair, in a good and workmanlike manner (reasonable wear and tear excepted), using
materials of a quality equal or superior to that which existed prior to the maintenance or repair, by means of duly licensed professionals
and otherwise in accordance with the provisions of this Article and this
Lease. Tenant shall not be entitled to construct any additional passageways to 250 West 40th Street, New York,
New York other than the 250 Passageways as they exist as of the date of this Lease.

 

56.02       On or before the Expiration Date or sooner termination of the Term, Tenant shall, at its sole cost and expense, remove the 250
Passageways, seal all openings and penetrations in connection therewith and repair and restore the affected portions of the Building
and 250 West 40th Street, New York, New York to the condition that existed before the construction of the 250 Passageways
(ordinary wear and tear excepted), in a good and workmanlike manner, using materials of a quality equal or superior to that which
existed prior to the construction of the 250 Passageways, by means of duly licensed professionals and otherwise in accordance
with the provisions of this Article and this Lease.

 

    	 	73	 

     

    

 

ARTICLE
57

 

TENANT’S
ANNUAL STATEMENTS

 

57.01       At Landlord’s request, from time to time, but not more than once in any given calendar year, Tenant shall furnish Landlord
with copies of the most recent unaudited annual profit and loss statement and balance sheet (and any interim internal financial
statements prepared by Tenant) which are to be certified by an officer of Tenant to be true and correct with respect to the information
contained therein, within thirty (30) days after the preparation of such statement(s). In the event Tenant fails to timely and
fully comply with the requirements of this Article, Tenant shall have a period of fifteen (15) days in which to cure such default
(which fifteen (15) day cure period shall be in lieu of the cure period otherwise provided for in Section 5.01 hereof), in
failure of which Landlord shall have such rights as are provided for at law, in equity and in said Section 5.01
of this Lease.

 

ARTICLE
58

 

ROOF
USE

 

58.01       Landlord hereby grants to Tenant a license for the use of the portion of the roof of the Building delineated by horizontal lines
and the term ’‘New Fireproof Wood Deck” the location plan annexed hereto and made a part hereof as “Exhibit
G” (the “Roof Deck”) on an exclusive basis subject to the rights of Landlord or its designee(s) as
set forth hereinafter and subject to the express terms and conditions of this Article and otherwise upon those terms and conditions
contained in this Lease (“Tenant’s Roof Deck Rights”,).

 

58.02       Notwithstanding
anything to the contrary contained elsewhere in this Lease, Tenant shall maintain, repair and, if necessary replace, at Tenant’s
sole cost and expense (i) the Roof Deck except to the extent that the requirement for such maintenance, repair or replacement
shall arise from the negligence or willful misconduct of Landlord, and (ii) the roof of the Building to the extent that the requirement
for such maintenance, repair or replacement shall arise as a result of the use of the Roof Deck by Tenant or anyone claiming through
Tenant. Tenant shall furnish Landlord with reasonable prior written notice before commencing any such maintenance, repair or replacements,
all of which shall be performed in accordance with the applicable provisions of this Lease. Tenant shall maintain at all times
during the term of this Lease insurance coverage for the Roof Deck of a nature, in such amounts and having such deductibles as
shall be reasonably required by Landlord. Tenant hereby indemnifies and agrees to defend and hold harmless Landlord, its directors,
officers, members, shareholders, partners, employees, agents, representatives, successors and assigns from and against any and
all claims, demands, actions, proceedings, damages, liabilities, judgments, orders, awards, fines, penalties, costs and expenses
(including, without limitation, reasonable attorneys’ fees) arising from Tenant’s Roof Deck Rights and/or from the
use of the roof of the Building by Tenant or anyone claiming through Tenant. The provisions of the foregoing indemnity shall survive
the expiration or sooner termination of the license contained herein or of this Lease.

 

58.03       Tenant, at Tenant’s sole cost and expense, shall at all times during the term of this Lease promptly and faithfully obey,
observe and comply with all laws, codes, rules and regulations of any (i) governmental or quasi-governmental authority or agency
having jurisdiction or any (ii) insurance underwriter or authority having jurisdiction or (iii) the New York Board of Fire

 

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Underwriters,
in any manner affecting or relating to Tenant’s Roof Deck Rights and shall be responsible, at Tenant’s sole cost and
expense, for obtaining and maintaining any and all permits and licenses necessary in connection with Tenant’s Roof Deck
Rights. Landlord shall, at Tenant’s sole cost and expenses, reasonably cooperate with Tenant’s efforts in obtaining
any necessary permits provided that Landlord shall not be obligated to incur any cost or expense or liability of any kind in connection
therewith as determined by Landlord in its reasonable discretion. Tenant’s failure or inability to maintain Tenant’s
Roof Deck Rights shall not entitle Tenant to any abatement, credit or set-off against Rent or to terminate this Lease. Tenant
agrees that Landlord shall not be required to provide any services whatsoever to the Roof Deck or to the roof of the Building.

 

58.04       Tenant shall not, from and after the date hereof, install any items or perform any alterations or improvements to the Roof Deck
or to the roof of the Building without Landlord’s prior consent which may be withheld in Landlord’s sole discretion.

 

58.05       Notwithstanding anything to the contrary contained elsewhere in this Lease, Tenant shall have no right to assign, sublet, license
or otherwise convey or transfer Tenant’s Roof Deck Rights whatsoever or to permit the use of the roof of the Building by
third parties for any purpose whatsoever, except Affiliates and invitees of Tenant, which Affiliates and invitees of Tenant shall
be accompanied at all times by Tenant.

 

58.06       Tenant shall not use or permit the use of the Roof Deck for any purpose which is not in keeping with the character of a first-class
office building in midtown Manhattan. In the event that Landlord shall give Tenant notice that any use of the Roof Deck violates
the provisions of this Article or the Lease, Tenant shall immediately cease such violative use. If Landlord shall notify Tenant
of a violation of the provisions of this Article or the Lease more than two (2) times during the Term, then such violations shall
constitute a default which is deemed incapable of cure and, in addition to all other rights and remedies under this Lease, Landlord
may revoke the license granted herein, without otherwise terminating this Lease, upon fourteen (14) days prior notice, and thereafter
Tenant shall have no further rights in and to the Roof Deck or the roof of the Building under this Article, and Tenant shall not
be entitled to any abatement, credit or set-off against Rent or to terminate this Lease as a result thereof.

 

58.07       Tenant
acknowledges and agrees that Tenant’s Roof Rights are hereby expressly made subject to the right of Landlord or Landlord’s
designee(s) to enter upon the Roof Deck, upon reasonable prior notice to Tenant, for the purpose of (i) maintaining, and making
inspections, repairs, alterations and improvements to, the Building and Building systems, and (ii) any other legitimate purpose,
and (iii) erecting and maintaining each year shortly prior to and throughout the Jewish holiday of Succoth (Tabernacles), a Succah
(ritual hut) on the Roof Deck, which Succah shall be dismantled and removed in each instance within five (5) business days after
the last day of the holiday and in connection with Succoth, Landlord shall use reasonable efforts to minimize interference with
Tenant’s use of the roof. Tenant shall ensure that in no event shall Tenant’s use of Tenant’s Roof Rights in
any manner interfere with or in any manner compromise the safety, security or integrity of any such installations made by Landlord
or Landlord’s designee(s). Notwithstanding the foregoing, Landlord agrees that, for so long as (i) Tenant is not in default
under this Lease after notice and beyond the expiration of any applicable cure period, and (ii) the Named Tenant and/or Affiliates
shall occupy at least seventy five (75%) percent of the Premises for the conduct of its

 

    	 	75	 

     

    

 

business
(as opposed to mere lawful possession), Landlord shall not lease or license any space on the roof of the Building to any third
party other than for purposes of permitting the installation and maintenance of equipment which supports Premises in the Building
occupied by such third party.

 

ARTICLE
59

 

TENANT’S
SECURITY MEASURES

 

59.01       Tenant
acknowledges and agrees that Landlord shall not be responsible to, and currently does not intend to, staff, station or maintain
any (i) electronic security or surveillance systems or (ii) manned security, doormen, porters or concierge, in or about the lobby,
stairwells, elevators, or common areas of the Building. Tenant may, at Tenant’s sole cost and expense, station or install,
operate and maintain, as the case may be, at the lobby, stairwells and common areas of the Building, as well as at the Premises,
(a) professional, duly qualified and licensed security personnel, and/or (b) a security identification and screening system which
may include, without limitation, passes or identification cards, video cameras or electronic surveillance; provided that all of
the foregoing are comparable or better than the existing system. Notwithstanding anything to the contrary contained in this Article,
(x) Tenant shall not station at the Building any security personnel who are not employed by Tenant, without the prior written
notice to Landlord in each instance, and (y) Landlord’s prior approval shall not be required in the event that Tenant enters
into any agreement with or retain any third party security, provided that (i) Landlord is given prior notice thereof, (ii) Tenant
delivers to Landlord a copy of the executed agreement within fourteen (14) days of the execution thereof, and (iii) such agreement
expires or is terminable on or before the Expiration Date of this Lease. With reasonable promptness after demand by Landlord,
Tenant shall promptly replace any security personnel referenced above in the event that hereinafter there occurs any negative
experience with such security personnel or security service (in
that they:(i) fail to provide security service in a manner consistent with good business or trade practice and such failure persists
for a period of thirty (30) days after notice from Landlord, or (ii) conduct themselves in an unprofessional or disreputable manner
in or about the Building and such failure persists for a period of thirty (30) days after notice from Landlord) or Landlord has
reasonable concerns regarding the financial stability of, or any criminal proceedings pending against, any such security personnel
or security service. Tenant acknowledges that the foregoing is a material inducement to Landlord to permit Tenant to station at
the Building the security personnel referenced above, and that Tenant’s failure to timely and fully comply with the foregoing
provisions shall constitute a default of the terms of this Lease. Tenant hereby indemnifies and agrees to defend and hold Landlord,
its members, partners, directors, officers, employees, representatives, servants and invitees, harmless from and against any and
all claims, demands, suits, actions, proceedings, awards, judgments, orders, damages, fines, penalties, costs, fees, expenses,
and liabilities whatsoever, arising out of the acts or omissions of Tenant, its members, partners, directors, officers, employees,
representatives and servants stationed at the Building, acting or presumed to be acting pursuant to the provisions of this Article.
Notwithstanding the provisions of this Article, at all times (1) Ralph Tawil, Sr., Saul Tawil, Ralph Tawil, Jr., Ralph Sitt, Eddie
Sitt, David Sitt and Jack Sitt, shall be permitted access to the Building and the Premises consistent with the other provisions
of this Lease without the necessity of any

 

    	 	76	 

     

    

 

Building
pass or other Building security identification, provided that they have previously provided Tenant with their photographs so that
they might be reasonably identified by any security personnel
stationed at the Building or Premises by Tenant pursuant to this Article; and (2) Landlord, its designated members, partners,
directors, officers, employees, representatives, servants and invitees shall be permitted access to the Building and the Premises
consistent with the other provisions of this Lease, and Tenant’s reasonable security requirements upon presentation of a
current and valid form of any pass or other security identification method then maintained by Tenant at the Building, provided
however, that Tenant shall promptly issue to Landlord upon request from time to time, such passes or other security identification.

 

ARTICLE
60

 

FREIGHT
ELEVATOR SERVICE

 

60.01       No heavy or bulky materials including, but not limited to furniture, office equipment, packages, or merchandise (“Freight
Items”) shall be received in the Premises or Building by Tenant or removed from the Premises or Building by Tenant except
on Mondays through Fridays between the hours of 8:00 a.m. and 7:30p.m. and on Saturdays from 8:00 a.m. through 3:00 p.m. (“Freight
Hours”) and by means of the freight elevators only, which shall be available on a first come, first served basis, free
of charge. Landlord shall be required to provide a freight elevator operator during all Freight Hours other than on Saturdays.
In the event that Tenant requires additional freight elevator service on days or at hours other than those set forth above, Tenant
shall provide Landlord with at least twenty four (24) hours prior notice in each instance, which notice may be given by fax, Attn:
Elliot Rackman; provided Landlord shall use commercially reasonable efforts to comply with such request on less than twenty four
(24) hours prior notice. In such event, Landlord shall make available a freight elevator operator to Tenant at the Building, and
Tenant shall pay to Landlord, as Additional Rent within twelve (12) days of demand, the Building charges for such freight service
at the rate of $75.00 per hour or portion thereof (with a four (4) hour minimum for overtime weekend use), plus sales tax, if
applicable, subject to future increases, which increases shall be based on a “Consumer Price Index” increase. Notwithstanding
the foregoing, upon at least twenty four (24) hours prior notice, Landlord shall furnish over time freight elevator service to
Tenant without charge in connection with the performance by Tenant in the Premises of Alterations (as defined in Article 8.01)
requiring the issuance of a building permit. Landlord shall provide Tenant with keys to the freight elevator, at no additional
charge to Tenant, for Tenant’s use in operating the freight elevators only: (i) on ’Saturdays during Freight Hours,
(ii) if Landlord fails to provide a freight elevator operator during Freight Hours, Monday through Friday, as required by the
provisions of this Article, or (iii) in the event of an emergency and no Building freight operator is at the Building. Any damage
done to the Building or Premises by Tenant, its employees, agents, servants, invitees, representatives and/or contractors in the
course of moving any Freight Items shall be paid by Tenant as Additional Rent within thirty (30) days after demand. Tenant hereby
indemnifies and agrees to defend and hold Landlord, its members, partners, directors, officers, employees, representatives, servants
and invitees, harmless from and against any and all claims, demands, suits, actions, proceedings, awards, judgments, orders, damages,
fines, penalties, costs, fees, expenses, and liabilities whatsoever, arising out of the acts or omissions of Tenant, its

 

    	 	77	 

     

    

 

members, partners, directors,
officers, employees, representatives and servants in connection with Tenant’s use of the freight elevators.

 

REMAINDER
OF PAGE INTENTIONALLY BLANK

 

    	 	78	 

     

    

 

IN WITNESS WHEREOF,
the said Landlord, and the Tenant have dul y executed this Lease as of the day and year first above written.

 

	 	240 WEST 40TM LLC
	 	 	 
	 	By.	 
	 	Name:	 
	 	Title:	 

 

	WITNESS:	 	 
	 	 	 
	 	 	 
	Name:	 	 
	Title:	 	 

 

	 	 	THE DONNA KARAN COMPANY LLC
	 	 	 	 
	 	 	By:	/s/ Patricia Kalberer
	 	 	 	Name: Patricia Kalberer
	 	 	 	Title:   Chief Financial Officer
	 	 	 	 
	WITNESS:	 	 	 
	 	 	 	 
	/s/ Susan Wagner	 	 	 
	Name: Susan Wagner	 	 	 
	Title:	 	 	 

 

    	 	79	 

     

    

 

ARTICLE 61

 

RULES AND REGULATIONS

MADE A PART OF TIDS LEASE

 

1.
No animals, birds,
bicycles or vehicles shall
be  brought  into or kept  in
 the Premises.
The Premises shall
not be used for manufacturing
or commercial repairing or for sale of
merchandise to the public or
as a lodging place, or for any
immoral or illegal purpose,
nor shall
the Premises be used for
a public stenographer
or typist; barber or
beauty shop; telephone,
secretarial or messenger service;
employment, travel or tourist
agency; school or classroom;
commercial document reproduction except
in connection with Tenant’s
business; or for any business
other than specifically
provided for in the Tenant’s
lease. Tenant shall not cause
or permit in the Premises any
disturbing noises which  may interfere with occupants
of this or neighboring Buildings,
any cooking (except microwave) or
objectionable odors, or any nuisance of any kind, or
any inflammable or explosive
fluid, chemical or
substance. Canvassing,
soliciting and peddling in the Building are prohibited,
and each tenant shall
cooperate so as to prevent
the same.

 

2.
The toilet rooms and other water apparatus shall not
be used for any purposes other than those for  which
 they were constructed, and no sweepings, rags, ink, chemicals or other unsuitable
substances shall be thrown therein.
 Tenant shall
not place anything out of doors,
windows or skylights, or into hallways, stairways
or elevators, nor place food
or objects on outside
window sills.
 Tenant shall 
not obstruct or cover the
halls, stairways  and
elevators, or use them
for any purpose other than
ingress and egress to or from
Tenant’s Premises or as otherwise provided
in this Lease, nor shall
skylights, windows, doors and transoms that reflect or admit light
into the Building be covered or obstructed
 in any way. All drapes
and blinds installed by Tenant  on any exterior window
of the Premises shall conform
in style and color
to the Building standard.

 

3.
Tenant shall not place a load
upon any floor of the Premises in excess of the
load per square foot
 which such floor was designed to carry and which
is allowed by law. Landlord reserves the right to prescribe
the weight and position of all safes, file cabinets and
filing equipment in the Premises. Business
machines (except desk top computers, fax machines and other ordinary
office machines)
and mechanical equipment shall
be placed and maintained by Tenant, at Tenant’s
expense, only with
Landlord’s consent  and in
settings approved  by Landlord to control
 weight, vibration,
noise  and annoyance. 
Smoking or carrying lighted  cigars,
 pipes or cigarettes in
the elevators of
the Building is prohibited.

 

4.
Tenant shall not
move any heavy or bulky materials into or out of
the Building or make 
or  receive  large
deliveries of goods, furnishings,  equipment
or other items, except in compliance
with all applicable
laws, ordinances, directions,
rules and regulations
of governmental authorities
having jurisdiction. If any
material or equipment requires
special handling, Tenant
shall employ only
persons
holding a Master Rigger’s
License to do such work, and
all such work
shall comply with all
legal requirements. Landlord reserves the: right to
inspect all freight to be brought into
the Building, and to
exclude any freight which violates any rule, regulation or other provision
of this Lease.

 

    	 	80	 

     

    

 

5.
 No sign, advertisement, notice or thing
shall be inscribed, painted or
affixed on any part
of the Building visible from
outside the Building or from
common areas shared with uU1er tenants
of the Building,
without the prior written
consent of Landlord, subject
to the terms of the Lease.
 Landlord may remove anything installed in
violation of this provision,
and Tenant shall pay
the cost of such
removal and any restoration
costs. Interior signs on
doors and directories shall
be inscribed or affixed by Landlord at Tenant’s
expense. Landlord shall
have the right to approve the
color, size, style and location
of all signs, advertisements and notices visible to the public
from the lobby or from
outside the Building. No advertising of any
kind by Tenant shall refer
to the Building, unless
first approved in writing
by Landlord.

 

6. Intentionally
Omitted.

 

7.
 No existing entry door
locks shall be
changed, nor shall
any additional locks or bolts
of any kind be placed
upon any door or window
by Tenant, without the
prior written consent of Landlord.
Two (2) sets of keys to
all exterior and interior
locks shall be furnished to Landlord .
At the termination of
this Lease, Tenant shall deliver
to Landlord all keys for any portion of the Premises
or Building. Before leaving
the Premises at any time,
Tenant shall close all windows
and close and lock all doors.

 

8.
 No Tenant shall purchase or obtain
for use in the Premises any towels, bootblacking, barbering
or other such service furnished by any company or
person not reasonably approved by
Landlord. Any necessary exterminating work in the Premises shall be
done at Tenant’s expense,
at such times, in such
manner and by such company
as Landlord shall reasonably
require. In the event that Tenant or anyone claiming
through Tenant no longer occupies the entire
rentable portion of the Building, Landlord reserves the
right to exclude from the Building, from 6:00p.m.
to

8:00
am., and at all hours
on Sunday and legal holidays, all
persons who do not present
a pass to the
Building signed by
Landlord. Tenant shall be responsible for the acts of all
persons to whom passes are issued
at Tenant’s request.

 

9.
Whenever Tenant shall submit to
Landlord any plan, agreement or
other document for Landlord’s consent or
approval, Tenant agrees to pay Landlord as Additional Rent, within fourteen (14) days
after demand, the reasonable out-of-pocket third party
fees of any architect, engineer
or attorney employed by Landlord to review said
plan, agreement or document.

 

10.
The use in the Premises of
auxiliary beating devices, such as portable electric
heaters, heat lamps or other
devices whose principal function
at the time of operation is to produce space heating,
is prohibited.

 

11.
Tenant shall keep all doors
from the hallway to the Premises
closed at all times
except for use during ingress to
and egress from the Premises. Tenant acknowledges
that a violation of
the terms of this paragraph
may also constitute a
violation of codes, rules or
regulations of governmental
authorities having
or asserting jurisdiction
over the Premises,
and Tenant agrees to indemnify Landlord from
any fines, penalties,
claims, action or increase
in fire insurance rates which might result
from Tenant’s violation of the
terms of this paragraph.

 

    	 	81	 

     

    

 

12.
Intentionally Omitted.

 

13.
 Tenant will
be entitled to its
pro rata share of listings
on the Building lobby directory
board, without charge.
 Any additional directory
listing (if space is available),
or any change in
a prior listing,
with the exception
of a deletion, will be
subject to a fourteen
($14.00) dollar service charge,
payable as
Additional Rent.

 

14.
In case of any conflict or inconsistency between
any provisions
of this Lease and any of the
rules and regulations
as originally or as
hereafter adopted, the
provisions
of this Lease shall
control.

 

    	 	82	 

     

    

 

Exhibit A-1

 

PLAN DELINEATING
THE EXISTING PREMISES

 

See
attached.  (The
location and dimensions
of walls, partitions,
columns, stairs
and openings are approximate
and subject to revisions
due to mechanical work, job
conditions, and requirements of governmental departments
and authorities. If the
space as actually partitioned
shall differ in any de minimis respect from this
sketch, the
actual area as
partitioned shall in
all events control. 
No such resulting
deviation or discrepancy
shall affect the rent
or Tenant’s
obligations under
this Lease).

 

    	 	83	 

     

    

 

 

 

Wednesday,
August 02,2006 (16).max

 

    	 	84	 

     

    

 

 

Wednesday,
August 02,2006 (16).max

 

    	 	85	 

     

    

 

 

Wednesday,
August 02,2006 (16).max

 

    	 	86	 

     

    

 

 

Wednesday,
August 02,2006 (16).max

 

    	 	87	 

     

    

 

 

Wednesday,
August 02,2006 (16).max

 

 

    	 	88	 

     

    

 

 

 

 Wednesday,
August 02,2006 (16).max

  

    	 	89	 

     

    

 

 

 Wednesday,
August 02,2006 (16).max

 

    	 	90	 

     

    

 

 

 Wednesday,
August 02,2006 (16).max

 

    	 	91	 

     

    

 

  

    	 	92	 

     

    

 

 

Wednesday,
August 02,2006 (16).max

 

    	 	93	 

     

    

 

 

Wednesday,
August 02,2006 (16).max

 

    	 	94	 

     

    

 

  

Wednesday,
August 02,2006 (16).max

 

    	 	95	 

     

    

 

 

Wednesday,
August 02,2006 (16).max

 

    	 	96	 

     

    

  

Exhibit A-2

 

PLAN DELINEATING THE
3rd FLOOR PREMISES

 

See
attached. (The location and dimensions
of walls, partitions,
columns, stairs and openings are approximate and subject
to revisions due to mechanical work, job conditions, and
requirements of governmental departments
and authorities.  If the space
as actually partitioned
shall differ in any
de minimis respect
from this sketch, the actual
area as partitioned shall in all events
control.  No such resulting
deviation or discrepancy
shall affect the rent or Tenant’s obligations under
this Lease).

 

    	 	97	 

     

    

 

Exhibit A-2

 

 

Wednesday,
August 02,2006 (7).max

 

    	 	98	 

     

    

 

Exhibit
B-1

 

(Memorandum
of Lease)

 

    	 	99	 

     

    

 

MEMORANDUM OF LEASE

 

THIS
MEMORANDUM OF LEASE is made as of the
____ day of _____________, 2006
 by and between
240 WEST 40TH LLC, a New
York limited liability
company  with an address
of c/o Sitt Asset Management
LLC, P.O. Box
2300, New York, NY
 10116 (“Landlord”)
and THE DONNA KARAN COMPANY LLC,
a New York
limited liability company
having an address at
240 West 40th Street, New
York, NY 10018
(“Tenant”).

 

PRELIMINARY
RECITALS:

 

A.      Landlord
and Tenant
have entered  into
a certain  lease
of even date herewith (the

“Lease”).

 

B.       Landlord
and Tenant have agreed to enter into
 this Memorandum of  Lease
for purposes of giving
notice of said Lease
and certain of its
terms, covenants and conditions.

 

AGREEMENTS:

 

1.       Demised
Premises. Pursuant  to
the Lease,
Landlord  has leased  and
demised to. Tenant
the entire rentable
 portion  of
the basement, second
through twelfth floors
and penthouse (the
“Premises”)
in the building located
at 240 West
40th Street,
New York,  NY
(the “Building”),

 

2.       Property.
The  land upon
 which  the  Building
 is  located
is  more particularly described in
Exhibit A attached
hereto:

 

3.        Term.
The term of the Lease
for all but the
3rd Floor
Premises shall commence
on August 1, 2006 
(the “Commencement Date”) and
shall expire  (unless
sooner terminated or
extended as
set forth in the
Lease) on July 31, 2016
(the “Expiration
Date”).

 

4.        Extension
of Term. The
original term of the
Lease may be extended, 
for one  period
of  five (5)
 years.  The renewal
 option  must be exercised
 by Tenant  one
hundred  eighty (180)
days prior to the Expiration
Date and is subject to the
terms and conditions
of the Lease.

 

5.       Retail
Restrictions.
Articles  44 and
51 of the Lease
contains certain
provisions restricting
the  permitted use
 of retail tenants and signage relating to  the
 ground  floor 
retail tenants
 of the Building.

 

6.       Right
of First
Offer. Pursuant
to Article 53 of the
Lease, if, during
the term of the
Lease,  Landlord 
shall desire
to sell the
Building, then Landlord
shall  first offer
same  to Tenant,
subject to and
in accordance
with the terms of
the Lease.

 

7.       Miscellaneous.
 This Memorandum
 of Lease has  been
 executed  for
 recording purposes
only, and
shall not
be deemed to amend,
supplement or interpret the Lease
or any of the terms,
provisions, covenants or
conditions  thereof.
 In the event 
of  any conflict
between the
provisions
of this Memorandum  of
Lease and the provisions
of the Lease, the provisions
of the Lease shall
prevail.

 

    	 	100	 

     

    

 

IN
WITNESS WHEREOF, the
parties hereto  have
executed  this Memorandum
of Lease as a sealed
instrument as of the
date and year
first above
set forth.

 

	 	LANDLORD:
	 	 
	 	240 WEST 40TH LLC
	 	 
	 	By:	 
	 	Name: 
	 	Title
	 	 
	 	TENANT:
	 	 
	 	THE DONNA  KARAN  COMPANY LLC
	 	 
	 	By:	 
	 	 
	 	Title:

 

    	 	101	 

     

    

 

	STATE OF NEWYORK	)
	 	)
	SS.: COUNTY OF NEW YORK	)

 

On the ____ day of __________________, 2006,
before me personally appeared _________________, who, being by me duly sworn, did depose and say that he/she resides at _______________________________________;
that he/she is the _______________of 240 West 40th LLC, a New York limited liability company described in and which executed the
above instrument; and the said _________________ acknowledged the foregoing instrument to be his/her free act and deed in such
capacity and the free act and deed of said limited liability company.

 

	 	Notary Public
	 	My commission expires:

 

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

 

On the _____ day of
______________, 2006, before me personally appeared _________________________________to me known, who, being by me duly
sworn, did depose and say that he/she resides at ______________________________________________________: that he/she is
the______________ __of The Donna Karan Company, the New York limited liability company described in and which executed the
above instrument; and the said __________________ acknowledged the foregoing instrument to be the free act and deed of

said company.

 

	 	Notary Public
	 	My commission expires:

 

    	 	102	 

     

    

 

EXHIBIT
A

LEGAL DESCRIPTION

 

    	 	103	 

     

    

 

Exhibit
B-2

 

(discharge
of memorandum
of lease)

 

    	 	104	 

     

    

 

DISCHARGE OF
MEMORANDUM OF LEASE

 

This
DISCHARGE OF MEMORANDUM OF LEASE, made and executed as of the ____________ day  of _____ 2006, by and between 240 WEST 40TH LLC
having an office c/o Sitt Asset Management LLC, P.O. Box 2300, New York, New York 10116-2300, hereinafter referred to as
“Landlord”, and THE DONNA KARAN COMPANY LLC, a New York limited liability company, having an office at 240
West 40th Street, New York, New York, Attn: Chief Financial Officer, hereinafter referred to as
“Tenant”.

 

WHEREAS,
Landlord and Tenant
have entered into
a certain written Lease,
dated as of August _____, 2006 (the “Lease”),
whereby Landlord leased
to Tenant and Tenant
hired from Landlord that certain premises
more particularly
described on Exhibit
A-1 and Exhibit A-2
annexed hereto and made
a part hereof.

 

WHEREAS,
the parties executed
a certain Memorandum of Lease dated as of August _____,
2006 with respect to the Lease,
which Memorandum was recorded on _________________, 2006
in the Office of the Clerk of Manhattan County, New York in Deed
Book_________ at page ________
et seq.; and

 

WHEREAS,
all rights of Tenant under the Lease
have terminated, and the parties
now desire to cancel and discharge of record
the said Memorandum of Lease.

 

NOW
THEREFORE, the Clerk of Manhattan County, New
York is hereby authorized
 and directed to cancel
and discharge
of record the said
Memorandum of Lease.

 

(REMAINDER
OF PAGE INTENTIONALLY LEFT
BLANK)

 

    	 	105	 

     

    

 

IN
WITNESS WHEREOF, Landlord and Tenant
have executed this
Discharge
of Memorandum of Lease as of the date
hereof.

 

	 	240 WEST40TH LLC
	 	 
	 	By:
	 	 
	 	Name
	 	Title
	 	 
	 	THE DONNA KARAN COMPANY LLC
	 	 
	 	By:	 
	 	Name:
	 	Title:

 

	State of New York	)
	 	):ss
	County of	)

 

On the __ day of ___________________ in the
year 2006, before me, the undersigned, a Notary Public in and for said state, personally appeared _________________________ personally
known to me or proved to me on the basis or satisfactory evidence to be the person(s) whose name(s) is (are) subscribed to the
within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their
signature(s) on the instrument, the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

 

	 	 
	 	Notary Public

 

	State of New York	)
	 	):ss
	County of	)

 

On the __ day of ___________________in the year
2006, before me, the undersigned, a Notary Public in and for said state, personally appeared _________________________ personally
known to me or proved to me on the basis or satisfactory evidence to be the person(s) whose name(s) is (are) subscribed to the
within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their
signature(s) on the instrument, the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

 

	 	 
	 	Notary Public

 

    	 	106	 

     

    

 

EXHIBIT C-1

 

FIXED ANNUAL
RENT SCHEDULE

 

Tenant
shall pay Fixed Annual Rent for the Existing Premises at
the following rates per annum:

 

	DATES	 	FIXED

    ANNUAL RENT	 	 	MONTHLY

    INSTALLMENT	 
	 	 	 	 	 	 	 
	From  the  Commencement Date  through and including July 31, 2009	 	$	4,581,500.00	 	 	$	381,791.67	 
	 	 	 	 	 	 	 	 	 
	From August 1, 2009 through  and including July 31, 2112	 	$	5,055,358.00	 	 	$	421,279.83	 
	 	 	 	 	 	 	 	 	 
	From August 1, 2112 through and including July 31, 2115	 	$	5,186,258.00	 	 	$	432,188.17	 
	 	 	 	 	 	 	 	 	 
	From August 1, 2115 through and including the Expiration Date	 	$	5,204,584.00	 	 	$	433,715.33	 

 

 

    	 	107	 

     

    

 

EXHIBIT
C-2

 

FIXED
ANNUAL RENT SCHEDULE

 

Tenant
shall pay Fixed
Annual Rent for the
3rd Floor Premises
at the following
rates per annum:

 

	DATES	 	FIXED
    
 ANNUAL
    RENT	 	 	MONTHLY

    INSTALLMENT	 
	 	 	 	 	 	 	 	 	 
	From
    the 3rd
     Floor Commencement Date
    through and     including the Expiration
    Date.	 	$	419,250.00	 	 	$	34,937.50	 

 

    	 	108	 

     

    

 

Exhibit
D

 

(SNDA Agreement)

 

    	 	109	 

     

    

 

EXHIBIT E

 

LANDLORD’S
 WORK

 

		•	Obtain and furnish Tenant with
an ACP-5 Certificate
 for the  Premises
based upon the configuration
 of  the Premises
as of the Commencement Date.

 

    	 	110	 

     

    

 

EXHIBIT F

 

FORM
STANDBY LEITER OF CREDIT

 

AUGUST 4,
2006

 

IF
THIS LANGUAGE  FOR  THB
STANDBY LETTER OF CREDIT IS  TO  BB
USBD THBN THB OBLIGOR/APPLICANT MUST  SIGNIFY THBIR  APPROVAL BY
SIGNING-OFF ON THIS EXHIBIT.

 

	 	 	APPROVED AS ISSUED	 
	 	 	COMPANY: 	 	 
	 	By:    X	 	 	 
	 	 	AUTHORIZED SIGNATURE OF OBLIGOR/APPLICANT	DATE

 

BENEFICIARY:

240 WEST 401ll LLC (LANDLORD)

C/O SITT ASSET MANAGEMENT LLC

P.0. BOX 2300

NEW YORK,
NY 10116-2300

 

LETTER OF CREDIT
 NO. XXXXXXXX 

 

GENTLEMEN:

 

BY ORDER OF OUR CLIENT, THE DONNA
KARAN COMPANY, LLC, 550 7TH AVENUE, NEW YORK,
NY 10017, WE HEREBY ESTABLISH OUR IRREVOCABLE, UNCONDITIONAL
STANDBY LETTER OF CREDIT
NO. XXXXXXX IN YOUR FAVOR FOR AN
AMOUNT NOT TO EXCEED IN AGGREGATE USD $1,250,000.00
(ONE MILLION TWO HUNDRED FIFTY THOUSAND AND
00/100 U.S. DOLLARS) EFFECTIVE IMMEDIATELY AND EXPIRING AT OUR OFFICE LOCATED AT CITIBANK N.A. C/0
ITS SERVICER CITICORP NORTII
AMERICA INC., 3800 CITIBANK CENTER, BUILDING B, 3RD FLOOR,
TAMPA, FL 33610, ATTN: U.S. STANDBY DEPT. WITH THE CLOSE OF BUSINESS ON JULY 31,2007.

 

FUNDS HEREUNDER
ARE AVAILABLE TO
YOU OR YOUR TRANSFEREE AGAINST
PRESENTATION OF YOUR
SIGHT DRAFT(S), DRAWN ON
US, MENTIONING THEREON THIS
LETTER OF CREDIT
NO. XX:XX:XXXX, WHICH
MAY BE EXECUTED ON YOUR
BEHALF BY YOUR AGENT OR ON BEHALF
OF YOUR TRANSFEREE(S) BY ITS
AGENT(S), WITHOUT PRESENTATION
OF ANY OTHER DOCUMENTS, STATEMENTS
OR AUTHORIZATIONS.

 

IN ADDITION,
PRESENTATION OF SUCH DRAFT AND CERTIFICATE MAY ALSO BE MADE BY FAX TRANSMISSION TO FAX NO. 813-604-7187
OR SUCH OTHER FAX NUMBER IDENTIFIED BY CITIBANK
IN A WRITTEN NOTICE TO YOU.
TO TIIE EXTENT A PRESENTATION IS MADE BY FAX TRANSMISSION, YOU MUST (I) PROVIDE TELEPHONE
NOTIFICATION THEREOF TO CITIBANK (PHONE  NO.813-604-7101)
 PRIOR TO ORSIMULTANEOUSLYWITHTHESENDING
OF SUCH FAX TRANSMISSION AND (II)
SEND THE ORIGINAL OF SUCH DRAFT
AND CERTIFICATE TO CITIBANK BY
OVERNIGHT COURIER, AT THE ADDRESS PROVIDED ABOVE FOR PRESENTATION
OF DOCUMENTS, PROVIDED HOWEVER,
THAT CITIBANK’S
RECEIPT OF SUCH TELEPHONE NOTICE OR ORIGINAL DOCUMENTS
SHALL NOT BE A CONDITION TO PAYMENT HEREUNDER.

 

THIS LETTER
OF CREDIT SHALL BE DEEMED
AUTOMATICALLY EXTENDED, WITHOUT AMENDMENT, FOR ADDITIONAL
PERIOD(S) OF ONE (1) YEARS FROM THE CURRENT
EXPIRATION DATE HEREOF
AND EACH SUCCESSIVE EXPIRATION DATE, THE LAST
RENEWAL OF WHICH SHALL BE
FOR A TERM SET TO EXPIRE NOT EARLIER THAN (90
days after expiration of lease
please fill this date in),
UNLESS WE NOTIFY YOU AT LEAST SIXTY
(60) DAYS PRIOR TO THEN APPLICABLE
EXPIRATION·DATE
HEREOF THAT WE ELECT TO CONSIDER THIS LETTER OF
CREDIT RENEWED

 

    	 	111	 

     

    

 

FOR
SUCH ADDITIONAL PERIOD(S). IN ORDER TO
BE EFFECTIVE, ANY SUCH NOTICE OF NON-RENEWAL MUST BE SENT BY REGISTERED MAIL (RETIJRN RECEIPT REQUESTED)
TO YOU AT THE
ABOVE ADDRESS (OR TO SUCH OTHER ADDRESS AS YOU OR
YOUR TRANSFEREE(S)
SHALL DESIGNATE
IN WRITING).

 

IT
IS CONDITION OF
THIS LETTER OF
CREDIT THAT IT IS TRANSFERABLE
AND MAY BE TRANSFERRED IN ITS ENTIRETY,
BUT NOT IN PART, AND
MAY BE SUCCESSIVELY TRANSFERRED BY YOU
OR ANY TRANSFEREE HEREUNDER TO A SUCCESSOR TRANSFEREE(S).
TRANSFER UNDER THIS
LETTER OF CREDIT TO
SUCH TRANSFEREE SHALL BE EFFECTED UPON PRESENTATION TO
US OF THE ORIGINAL
OF THIS LETTER OF CREDIT
AND ANY AMENDMENTS HERETO ACCOMPANTED
BY A REQUEST DESIGNATING
THE TRANSFEREE IN THE FORM OF
ANNEX A, ATTACHED
HERETO, APPROPRIATELY COMPLETED,
ALONG WITH THE PAYMENT OF
OUR TRANSFER FEE OF 1⁄4 OF 1% (MlN1MUM $200.00)
ON THE OUTSTANDING AMOUNT
OF LETTER OF CREDIT, WHICH SHALL
BE PAID BY THE BENEFICIARY.

 

WE HEREBY ENGAGE
WITH YOU TO HONOR YOUR DOCUMENT(S) AS
SPECIFIED ABOVE, DRAWN
UNDER AND IN COMPLIANCE WITH THE TERMS AND CONDITIONS OF THIS  STANDBY,
IF PRESENTED AS SPECIFIED HEREIN
ON OR BEFORE THE STATED
 EXPIRIATION DATE.

 

EXCEPT
AS FAR AS OTHERWISE EXPRESSLY STATED HEREIN, THIS
STANDBY LETTER OF
CREDIT IS SUBJECT TO
THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY LETTERS
OF CREDIT, INTERNATIONAL CHAMBER OF COMMERCE, PUBLICATION
NO.500, AND AS
TO MATTERS NOT GOVERNED BY
THE UCP 500, SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE
OF NEW YORK AND APPLICABLE U.S. FEDERAL
LAW

 

    	 	112	 

     

    

 

Annex A

Request for Full Transfer

Relinquishing
all Rights as Beneficiary

 

(This
form is to be used
when the Letter
of Credit is to be Transferred
in its entirety and , no substitution
of invoices is involved
and, no rights are to
be retained by the undersigned Beneficiary. )

 

	Citicorp North America Inc., 	Date:
	As Servicer  for Citibank,  N.A.	 
	3800 Citibank Center,  Bldg.B, 3rd Fl.	 
	Tampa, FL 33610	 

 

	 	Re: L/C No.
	 	 
	 	Issued by:   CITIBANK, N.A.

 

	Gentlemen:

 

Receipt is acknowledged
of the original instrument which you forwarded
to us relative to the issuance of a Letter of Credit ( herein
called the “Credit”)
bearing your reference number as above in favor of ourselves and/or Transferees
and we hereby request you
to transfer the said Letter
of Credit, in its entirety, to:

 

whose address is

 

(Optional)
 Please advise Beneficiary through
the below indicated Advising Bank:

 

We are
returning the original instrument
to you herewith
in order that you may deliver it to the Transferees
together with
your customary letter of
transfer.

 

It is understood
that any amendments to the Letter of
Credit which you may
receive are to be advised
by you directly to the Transferees and
that the drafts and documents of
the Transferees, if issued
in accordance with the
conditions of the Letter of Credit, are
to be forwarded by
you directly to the
party for whose account the credit
was opened (or any intermediary) without our intervention.

 

(continued
on page 2 )

 

    	 	113	 

     

    

 

	Page 2	Request for Full Transfer  Relinquishing all  Rights as Beneficiary

 

Citibank, N.A. reference__________________

 

We understand
that the Transfer charge is 1/4
of 1% on the amount being transferred (minimum $200.00)
and in addition thereto we agree to
pay to you on demand any
expenses that may be incurred by you in connection with
this transfer.

 

__ We
enclose our check for $ ________________to cover
your charges.

(Note :
Payment of charges must be
in the form of a certified check if not drawn on Citibank,
N.A.)

 

_
We authorize you to
charge our Citibank N.A.
account No. _____________________________

 

	SIGNATURE GUARANTEED	 	Sincerely yours, 
	 	 	 
	The First Beneficiary’s
signature(s) with title(s) conforms with that on me with
us and such is/are
authorized for the execution of this
instrument.	 	 
	 	 	 
	(Name of Bank)	 	(Name of First Beneficiary) 
	 	 	 
	(Bank Address)	 	(Telephone Number)
	 	 	 
	(City, State, Zip Code)	 	(Authorized Name and Title) 
	 	 	 
	(Telephone Number)	 	(Authorized Signature)
	 	 	 
	(Authorized Name and Title)	 	(Authorized Name and Title)
	 	 	(If applicable)
	 	 	 
	(Authorized  Signature)	 	(Authorized Signature)
	 	 	(If applicable)

 

    	 	114	 

     

    

 

Exhibit
G

 

PLAN
DELINEATING THE ROOF DECK

 

See attached.
(The location and dimensions
of walls, partitions,
columns, stairs and
openings are approximate and subject
to revisions due to mechanical
work, job conditions, and requirements
of governmental departments and authorities. If
the space as actually
partitioned shall differ in
any de minimis respect
from this sketch, the
actual area as
partitioned shall in
all events control. No such resulting deviation
or discrepancy shall
affect the rent or Tenant’s
obligations under this Lease).

 

    	 	115	 

     

    

 

 

    	 	116	 

     

    

 

LEASE MODIFICATION AGREEMENT

 

LEASE MODIFICATION AGREEMENT
(this “Agreement”) dated as of the 28th day of May 2008 between 240 WEST 40TH LLC, having an office
c/o Sitt Asset Management LLC, One Penn Plaza, New York, New York 10119 (hereinafter referred to as “Landlord”),
and THE DONNA KARAN COMPANY LLC, a New York limited liability company, having an office at 240 West 40th Street, New
York, New York, Attn: Chief Financial Officer (hereinafter referred to as “Tenant”).

 

WITNESSETH:

 

WHEREAS, Landlord, as
landlord, and Tenant, as tenant, entered into that certain agreement of lease dated as of August 1, 2006 (the “Lease”)
covering those certain premises located on and comprising the entire rentable portion of the basement, the second (2nd)
floor, the fourth (4th) through twelfth (12th) floors and the penthouse (collectively, the “Existing
Premises”) and the entire rentable portion of the third (3rd) floor (the “3rd Floor Premises;”
the Existing Premises and 3rd Floor Premises being hereinafter collectively referred to as the “Premises”),
as more particularly described in the Lease, in the building known as and located at 240 West 40th Street, New York,
New York (the “Building”) for a term scheduled to expire on July 31, 2016 (the “Expiration Date”)
under the terms, covenants and conditions contained therein; and

 

WHEREAS, pursuant to
the Lease, the 3rd Floor Premises is to be added to the Premises under all of the applicable terms, covenants and conditions
of the Lease, for a term which shall commence ten (10) days following the date on which Landlord gives Tenant written notice that
the 3rd Floor Premises is available for occupancy, and shall end on the Expiration Date or on such earlier date upon
which the term of the Lease shall expire, be canceled or terminated pursuant to any of the terms, covenants or conditions of the
Lease or pursuant to law, but in no event shall the 3rd Floor be added to the Premises: (i) before May 1, 2007, or (ii)
after July 1, 2008; and

 

WHEREAS, Landlord and
Tenant wish to amend the Lease to provide, inter alia, that the 3rd Floor Premises shall be added to the Premises
on the earlier to occur of: (i) that day which is (10) ten days after notice from Landlord to Tenant of the date on which Landlord’s
3rd Floor Work (as such term is defined in the Lease) is estimated to be Substantially Completed (as defined in Paragraph
3(b), below), but not earlier than the date on which Landlord shall deliver possession of the 3rd Floor Premises to Tenant with
Landlord’s 3rd Floor Work Substantially Completed; or (ii) the day on which Tenant or anyone claiming through
Tenant shall occupy or otherwise accept possession of the 3rd Floor Premises; (the “3rd Floor Commencement
Date”), but in no event earlier than May 1, 2008 or later than July 1, 2008, subject to the terms and conditions set
forth in the Lease and this Agreement; and

 

    	 	117	 

     

    

  

WHEREAS, Landlord has
agreed to permit Tenant to add the 3rd Floor Premises to the Premises on the 3rd Floor Commencement Date,
subject to the terms, covenants and conditions of the Lease, as modified by this Agreement.

 

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

 

		1.	Term.

 

Effective as of the
date hereof, the Lease shall be amended to provide that the 3rd Floor Premises shall be added to the Premises under
all the applicable terms, covenants and conditions of the Lease, except as modified herein, for a term which shall commence on
the 3rd Floor Commencement Date and which shall end and expire on the Expiration Date or on such earlier date upon which the term
of the Lease shall expire, be canceled or terminated pursuant to any of the conditions or covenants of the Lease or pursuant to
law.

 

		2.	Fixed Annual Rent, Tax Escalation, Electricity and Operating Expenses.

 

(a)          Tenant acknowledges and agrees that from and after the
3rd Floor Commencement Date, in addition
to paying Fixed Annual Rent at the rates provided for in Exhibit C-1 of the Lease, Tenant shall pay to Landlord Fixed Annual Rent
at the rates provided for in Exhibit C-2 of the Lease in accordance with Article 3 of the Lease.

 

(b)       
  Tenant acknowledges and agrees that Tenant shall pay to Landlord, as Additional Rent, tax escalation in accordance with Article
32 of the Lease. For the purposes of the Lease, Landlord and Tenant acknowledge and agree that from and after the 3rd
Floor Commencement Date:

 

		(i)	the rentable square foot area of the Premises shall be deemed to be 143,800 square feet, and

 

		(ii)	the term “Tenant’s Share,” for purposes of computing tax escalation, shall
mean ninety-four percent (94%).

 

(c)         
Tenant acknowledges and agrees that Tenant shall pay to Landlord, as Additional Rent, in accordance with Article 41 of the Lease,
Tenant’s Electric Percentage (as defined below) of any and all sums billed to Landlord by any and all public utility and/or
other service providers of electricity and electrical service to the Building (excluding the retail portions of the Building).
For the purposes of the Lease, Landlord and Tenant acknowledge and agree that from and after the 3rd Floor Commencement
Date, the term “Tenant’s Electric Percentage” shall be deemed to be ninety-four percent (94%).

 

    	 	118	 

     

    

 

(d)       Tenant
acknowledges and agrees that Tenant shall pay to Landlord, as Additional Rent, operating expense escalations in accordance with
Article 50 of the Lease. For the purposes of the Lease, Landlord and Tenant acknowledge and agree that from and after the 3rd
Floor Commencement Date, the term the “Percentage” for the purposes of computing operating expense escalations shall
be deemed to be ninety four percent (94%).

 

		3.	Condition of 3rd Floor
                                         Premises.

 

(a)       Tenant
shall accept possession of the 3rd Floor Premises on the 3rd Floor Commencement Date free of personal property,
broom clean and otherwise in its “as-is” condition, and Tenant acknowledges and agrees that Landlord shall have no
obligation to do any work in or to the 3rd Floor Premises in order to make it suitable and ready for occupancy and use
by Tenant other than to perform Landlord’s 3rd Floor Work, as expressly set forth in Article 22 of the Lease. Effective as
of the date hereof, the Lease shall be amended to provide that Landlord shall perform the following items of additional work: (i)
replace the roof of the Building; (ii) re-point the faҫade of the Building; (iii) scrape, re-plaster and re-paint the interior
perimeter wall located on the 40th Street side of the 12th floor of the Building; and (iv) scrape, re-plaster
and re-paint the walls located in the models’ dressing room located on the 12th floor of the Premises (items (i)
through (iv), above, collectively “Landlord’s Additional Work”).

 

(b)       Landlord’s
3rd Floor Work and Landlord’s Additional Work shall be deemed to be substantially completed notwithstanding that:
(i) minor or non-material details of construction, mechanical adjustment or decoration remain to be performed, provided that said
details (“Punch List Items”) shall be completed by Landlord within a reasonable time thereafter; or (ii) with
respect to Landlord’s Additional Work, a portion of Landlord’s Additional Work is incomplete because construction scheduling
requires that such work be done after incomplete finishing or after the completion of work other than Landlord’s Additional
Work which is to be performed by or on behalf of Tenant.

 

		4.	Early Delivery Consideration.

 

As consideration for
Landlord’s delivery of the 3rd Floor Premises to Tenant, along with the existing fixtures and permanent improvements
located within the 3rd Floor Premises as of the 3rd Floor Commencement Date, Tenant shall pay to Landlord
the sum of Five Hundred Thousand and 00/100 Dollars ($500,000.00) (the “Early Delivery Consideration”) in three
(3) installments as follows:

 

(i)       
$166,666.67 by official bank check, payable to Landlord’s order, on the 3rd Floor Commencement Date (the “First
Installment Payment”);

 

    	 	119	 

     

    

 

(ii)       
$166,666.67 by official bank check, payable to Landlord’s order, on the twelve (12) month anniversary of the 3rd
Floor Commencement Date (the “Second Installment Payment”); and

 

(iii)       $166,666.66
by official bank check, payable to Landlord’s order, on the twelve (12) month anniversary of the date on which the Second
Installment Payment is due and payable, as set forth in sub-clause (ii) above, as modified by the immediately succeeding paragraph
(the “Third Installment Payment”).

 

Notwithstanding anything
contained in this Paragraph to the contrary, Tenant shall not be obligated to make the payment set forth in clause (ii), above,
on the twelve (12) month anniversary of the 3rd Floor Commencement Date (the “Second Payment Date”)
in the event that Landlord shall not have substantially completed all items of Landlord’s Additional Work on or prior to
such Second Payment Date; provided, however, that in such event Tenant shall be obligated instead to make the payment set forth
in clause (ii), above, five (5) days after notice from Landlord of the substantial completion of all items of Landlord’s
Additional Work, and Tenant shall thereafter be obligated to make the payment set forth in clause (iii), above, in a timely manner.

 

		5.	Existing Tenant.

 

Notwithstanding anything
contained herein or in the Lease to the contrary, Tenant acknowledges that it has been informed by Landlord that the 3rd
Floor Premises are presently occupied by another tenant, Eden Apparel Group, Inc. (d/b/a “Playknits”) (the “Existing
Tenant”), under a lease agreement (the “Existing Lease”) which is to expire by its terms after July
1, 2008. Tenant further acknowledges that it has been informed by Landlord that the Existing Tenant has entered into a Surrender
Agreement with Landlord pursuant to which Tenant has agreed to vacate and surrender to Landlord possession of the 3rd
Floor Premises prior to July 1, 2008. Landlord and Tenant agree that if the Existing Tenant shall fail to vacate and surrender
possession of the 3rd Floor Premises to Landlord on or prior to July 1, 2008, and, solely as a result, Landlord shall be unable
to deliver possession of the 3rd Floor Premises to Tenant as required by the Lease and this Agreement on or before July
1, 2008, then Landlord shall not be subject to any liability for such failure and the Lease and this Agreement shall remain in
full force and effect without extension of the term; however, in such event, Tenant’s obligation to pay Fixed Annual Rent
and Additional Rent under the Lease and hereunder with respect to the 3rd Floor Premises shall not commence until possession
of the 3rd Floor Premises is delivered to Tenant in the condition required by the Lease and this Agreement, or on such
earlier date, if any, as Tenant or anyone claiming through Tenant shall occupy or accept possession of the Premises. Further, in
the event that such Existing Tenant shall fail to vacate and surrender possession of the 3rd Floor Premises to Landlord
on or before July 1, 2008, upon Landlord’s recovery of actual and lawful possession of the 3rd Floor Premises,
Landlord shall furnish Tenant with prompt notice thereof.

    	 	120	 

     

    

 

Notwithstanding
anything contained herein to the contrary, in the event that Landlord shall be unable to deliver the 3rd Floor
Premises to Tenant with Landlord’s Work Substantially Completed on or before August 1, 2008, then Tenant shall have the
right to terminate the Lease, with regard to the 3rd Floor Premises only, on notice (“Tenant’s
Termination Notice”) given to Landlord within fourteen (14) days thereafter (the “Termination Notice
Period”), in which event the Lease shall terminate as of August 15, 2008 and be of no further force or effect with
regard to the 3rd Floor Premises only, except with regard to those provisions hereof that are specifically stated
to survive the expiration or termination hereof. However, and notwithstanding anything contained in the immediately preceding
sentence to the contrary, in the event that Landlord shall tender delivery of the 3rd Floor Premises to Tenant with
Landlord’s Work Substantially Completed during the Termination Notice Period, then Tenant’s Termination Notice
shall be null and void and the Lease shall remain in full force and effect with regard to the entire Premises, including,
without limitation, the 3rd Floor Premises.

 

		6.	Intentionally Omitted.

 

		7.	Successors and Assigns.

 

This Agreement shall
be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns.

 

		8.	Entire Agreement.

 

The Lease, as modified
by this Agreement, represents the entire understanding between the parties with regard to the matters addressed herein and may
only be modified by written agreement executed by all parties hereto. All prior understandings or representations between the parties
hereto, oral or written, with regard to the matters addressed herein, other than the Lease, are hereby merged herein. Tenant acknowledges
that neither Landlord nor any representative or agent of Landlord has made any representation or warranty, express or implied,
as to the physical condition, state of repair, layout, footage or use of the 3rd Floor Premises or any matter or thing
affecting or relating to the 3rd Floor Premises except as specifically set forth in this Agreement. Tenant has not been
induced by and has not relied upon any statement, representation or agreement, whether express or implied, not specifically set
forth in this Agreement. Landlord shall not be liable or bound in any manner by any oral or written statement, broker’s “set-up,”
representation, agreement or information pertaining to the 3rd Floor Premises or this Agreen1ent furnished by any real
estate broker, agent, servant, employee or other person, unless specifically set forth herein, and no rights are or shall be acquired
by Tenant by implication or otherwise unless expressly set forth herein.

 

		9.	Effectiveness.

 

This Agreement shall
not be binding upon Landlord and Tenant until executed and delivered by both Landlord and Tenant.

 

    	 	121	 

     

    

 

		10.	Ratification.

 

Except as specifically
modified herein, all other terms, covenants and conditions of the Lease are and shall remain in full force and effect and are hereby
ratified and confirmed.

 

		11.	No Brokers/Indemnification.

 

Landlord and Tenant
covenant, represent and warrant to each other that they have had no dealings or negotiations with any broker or agent in connection
with the consummation of this Agreement other than Sitt Leasing LLC and Colliers ABR (collectively, the “Brokers”),
and each party covenants and agrees to defend, hold harmless and indemnify the other party from and against any and all cost, expense
(including reasonable attorneys’ fees) or liability for any compensation, commissions or charges claimed by any broker or
agent other than the Brokers with respect to this Agreement or the negotiation hereof.

 

		12.	Miscellaneous.

 

(a)       The
captions in this Agreement are for convenience only and are not to be considered in construing this Agreement. This Agreement may
not be modified except in a writing signed by Landlord and Tenant.

 

(b)       This
Agreement shall be construed without regard to any presumption or other rule requiring construction against the party causing this
Agreen1ent to be drafted.

 

(c)       
Terms used in this Agreement and not otherwise defined herein shall have the respective meanings ascribed thereto in the Lease.

 

(d)       
If any provision of this Agreement or its application to any person or circumstances is invalid or unenforceable to any extent,
the remainder of this agreement, or the applicability of such provision to other persons or circumstances, shall be valid and enforceable
to the fullest extent permitted by law and shall be deemed to be separate from such invalid or unenforceable provisions and shall
continue in full force and effect.

 

[The remainder of this page has been
intentionally left blank.]

 

    	 	122	 

     

    

 

IN WITNESS WHEREOF, Landlord and Tenant
have duly executed this Agreement as of the date first above written.

 

	LANDLORD:	 	240 WEST 40TH LLC
	 	 	 	 
	 	 	By:	/s/ Ralph Sitt
	 	 	 	Name: 	Ralph Sitt
	 	 	 	Title:	President

 

	Witness: 	 	 
	 	 	 
	/s/ Christine Dehoatch	 
	Name:	Christine Dehoatch	 
	Title:	Leasing Administrator	 

 

	TENANT:	THE DONNA KARAN COMPANY LLC
	 	 
	 	By:	/s/ Patricia Kalberer
	 	Name:	Patricia Kalberer
	 	Title:	Chief Financial & Administrative Officer

 

	Witness:	 
	 	 
	/s/ Dhara V. Patel	 
	Name:  Dhara V. Patel	 
	Title: Executive Assistant	 

 

    	 	123	 

     

    

 

SECOND AMENDMENT OF LEASE

 

THIS SECOND
AMENDMENT OF LEASE (this “Second Amendment”), made as of this 23rd day of November, 2015 (the “Effective
Date”), between 240 WEST 40th DELAWARE LLC, a Delaware limited liability company (“Landlord”), having
an office at c/o Olmstead Properties, Inc., 575 Eighth Avenue, Suite 2400, New York, New York 10018, and THE DONNA KARAN COMPANY
LLC, a New York limited liability company (“Tenant”), having an office at 240 West 40th Street, New York, New
York.

 

WITNESSETH

 

WHEREAS,
240 West 40th LLC, predecessor in interest to Landlord, and Tenant entered into that certain Lease, dated as of August 1, 2006
(the “Original Lease”), as amended by that certain Lease Modification Agreement, dated as of May 28, 2008 (the
“First Amendment”, as further amended hereby, known collectively as the “Lease”), whereby
Tenant leased from Landlord premises more particularly described therein in the building known as 240 West 40th Street, New York,
New York;

 

WHEREAS,
Landlord and Tenant desire to extend the term of the Lease and modify certain other provisions thereof as more specifically set
forth herein;

 

NOW, THEREFORE,
for Ten Dollars, the mutual covenants set forth below and other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, Landlord and Tenant hereby agree as follows:

 

		1.	Definitions.

 

Unless
otherwise defined herein, all capitalized terms used herein shall have the meanings ascribed to them in the Lease.

 

		2.	Extended Term.

 

The term
of the Lease is hereby extended for the period (the “Extended Term”) from August 1, 2016 through and including
July 31, 2020. All references in the Lease to the “Term” or the “term” shall be deemed to mean the term,
as extended by the Extended Term, subject to further extension as herein provided, and all references in the Lease to the “Expiration
Date” shall be deemed to mean and refer to July 31, 2020, subject to further extension as herein provided or unless sooner
terminated pursuant to the Lease.

 

		3.	Fixed Annual Rent.

 

During the period from and after January 1,
2016 (the “Adjustment Date”), Fixed Annual Rent (without electric) shall be payable as provided on Exhibit
A annexed hereto.

 

		4.	Additional Rent Payments.

 

Tenant
shall continue to make all Additional Rent payments in accordance with the terms of the Lease, except that with respect to the
period from and after the Adjustment Date, (i) Tenant shall have no obligation to make any payments pursuant to Article 50
of the Original Lease (and Article 2 of the First Amendment) (including, without limitation, payments for Expenses, Building Insurance
Expenses and Base Insurance Expenses), and (ii) the “Base Tax Year” shall

 

    	 	-1-	 

     

    

 

be revised to mean the New York City Real Estate
Tax Year commencing July 1, 2016 through June 30, 2017.

 

		5.	Security.

 

A.           Landlord
is currently holding, as security for Tenant’s obligations under the Lease, an LOC in the amount of $1,250,000 (the “Initial
LOC”). The Security under the Lease is hereby increased to the sum of $1,797,500. All references in the Lease to the
“Security” and/or “LOC” shall be deemed to mean and refer to $1,797,500. Contemporaneously herewith, Tenant
is delivering to Landlord cash security in the amount of $547,500 (the “Cash Security”), which shall be held
by Landlord as part of the Security.

 

B.           On
or prior to the date (the “LOC Delivery Date”) that is fifteen (15) days following the Effective Date, time
being of the essence, Tenant shall deliver to Landlord either (i) an amendment to the Initial LOC so as to increase the same to
$1,797,500, or (ii) a new LOC in the amount of $1,797,500 (either (i) or (ii) known as the “Amended LOC”). Upon
delivery thereof, provided Tenant is then (a) current in Fixed Annual Rent and (b) not in material non-monetary default under the
Lease beyond notice and the expiration of any applicable cure period (Tenant’s compliance with both of the foregoing conditions
known as “Not in Material Default” and Tenant’s failure to comply with both of the foregoing conditions
known as “in Material Default”), Landlord shall provide Tenant with a credit against the next installment(s)
of Fixed Annual Rent in the aggregate amount of the Cash Security then held by Landlord (it being agreed that if Landlord shall
not provide such credit because Tenant is then so in default under the Lease, upon the curing of such default, Landlord shall provide
such credit). In the event this Second Amendment is terminated pursuant to Section 11 below, provided Tenant is not then
in Material Default, Landlord shall immediately return any security deposit in excess of the amount of the Initial LOC to Tenant
(and, if applicable, Landlord shall consent to an amendment of the Amended LOC so as to reduce the same to the Initial LOC), it
being agreed that if Landlord shall not return such security because Tenant is then so in default under the Lease, upon the curing
of such default, Landlord shall return such security. Landlord’s obligation in the preceding sentence shall survive termination
of this Second Amendment.

 

		6.	Additional Extension Option.

 

By notice
given at any time on or prior to July 31, 2017 (time being of the essence), Tenant shall have the one-time option (the “Additional
Extended Term Option”) to extend the Term for the period (the “Additional Extended Term”) from August
1, 2020 through and including July 31, 2030 (the “Additional Extended Term Expiration Date”), whereupon all
references in the Lease to the “Term” or the “term” shall be deemed to mean the term, as extended by the
Additional Extended Term, and all references in the Lease to the “Expiration Date” shall be deemed to mean and refer
to the Additional Extended Term Expiration Date, unless sooner terminated as provided in the Lease, provided, however, that the
exercise of such option shall only be effective upon compliance with the following terms and conditions:

 

(i)          Tenant
shall give Landlord written notice (the “Additional Extended Term Notice”) of its election to extend the Term
within the time period set forth in Section 6 above. Tenant’s failure to timely give the Additional Extended Term
Notice shall be deemed to be a waiver of Tenant’s rights under this Section 6. Any such Additional Extended Term Notice
shall be irrevocable upon delivery.

 

    	 	-2-	 

     

    

 

(ii)         The
Additional Extended Term Notice shall be given in the manner provided in Article 27 of the Original Lease (as amended hereby),
except that it shall state, in bold-faced capitalized letters on the top of the first page thereof: “TENANT HEREBY ELECTS
TO EXTEND THE TERM OF THE LEASE PURSUANT TO SECTION 6 OF THE SECOND AMENDMENT OF LEASE”.

 

(iii)        Tenant
may exercise the Additional Extended Term Option only if, at the time of the giving of the Additional Extended Term Notice, (i)
Tenant is then Not in Material Default, (ii) Tenant shall have not subleased more than 25% of the Premises (other than to a Related
Entity), and (iii) Tenant shall have not assigned the Lease (other than to a Related Entity). Tenant may not exercise the Additional
Extended Term Option, and this Section 6 shall be of no force and effect, upon Tenant’s exercise of the Floor Surrender
Option (as hereinafter defined).

 

(iv)        Tenant
may exercise the Additional Extended Term Option only if the Additional Extended Term Notice is accompanied by the Guaranty of
LVMH Moet Hennessy Louis Vuitton S.E. (the “Guarantor”) in the form attached hereto as Exhibit F (the
“Guaranty”), executed by and acknowledged on behalf of the Guarantor and any required agent for service of process.
Landlord shall return the LOC to Tenant within thirty (30) days of the delivery of the Guaranty, provided Tenant is then Not in
Material Default (it being agreed that if the LOC is not returned to Tenant because Tenant is then so in default under the Lease,
upon Tenant curing such default, Landlord shall return the LOC to Tenant).

 

(v)         In
the event Tenant exercises the Additional Extended Term Option, then from and after the date that is six (6) months after the giving
of the Additional Extended Term Notice (the “Additional Extended Term Rent Reset Date”), (x) if Landlord shall
have not exercised the Floor Surrender Option, the Fixed Annual Rent (without electric) shall be as provided on Exhibit E
annexed hereto, and (y) if Landlord shall have previously exercised the Floor Surrender Option, the Fixed Annual Rent (without
electric) shall be as provided on Exhibit B annexed hereto.

 

(vi)        In
the event Tenant exercises the Additional Extended Term Option, then provided Tenant is then Not in Material Default, fifty percent
(50%) of the Fixed Annual Rent (without electric) payable for each of the first (1st) through twentieth (20th)
months of the Term from and after the Additional Extended Term Rent Reset Date shall be abated. If Tenant shall not receive the
abatement of any Fixed Annual Rent to which it is otherwise entitled pursuant to this Section 6(vi) as a result of Tenant’s
default under the Lease, then upon the curing of such default, any such abatement which Tenant did not receive shall be applied
to the next installment(s) of Fixed Annual Rent coming due until such abatement is fully applied.

 

(vii)       In
the event Tenant exercises the Additional Extended Term Option, then Tenant shall be entitled to the Additional Extended Term Work
Allowance (as hereinafter defined).

 

		7.	Floor
Surrender Option.

 

By notice
given at any time on or prior to January 31, 2017 (time being of the essence), Landlord (subject to the terms of clause (iii) below)
and Tenant shall each have the one-time option (the “Floor Surrender Option”) to terminate the Lease with respect
to all of the second (2nd), third (3rd) and fourth (4th) floors of the Building only (collectively,
the “Surrender Floors”), effective as of the date that is six (6) months following the giving of the Floor Surrender
Notice (as hereinafter defined) (such date, the “Floor Surrender Date”), provided, however, that such termination
shall only be effective upon compliance with the following terms and conditions:

 

    	 	-3-	 

     

    

 

(i)          Landlord
or Tenant shall give the other party written notice (the “Floor Surrender Notice”) of its election to terminate
the Lease with respect to the Surrender Floors within the time period set forth in Section 7 above (subject to clause (iii)
below). Landlord or Tenant’s failure to timely give the Floor Surrender Notice shall be deemed to be a waiver of Landlord
or Tenant’s rights, as applicable, under this Section 7. Any such Floor Surrender Notice shall be irrevocable upon
delivery.

 

(ii)         The
Floor Surrender Notice shall be given in the manner provided in Article 27 of the Original Lease (as amended hereby), except
that if (a) Tenant gives the Floor Surrender Notice, it shall state, in bold-faced capitalized letters on the top of the first
page thereof: “TENANT HEREBY ELECTS TO TERMINATE THE LEASE WITH RESPECT TO THE SURRENDER FLOORS EFFECTIVE AS OF [DATE
(i.e., the Floor Surrender Date)] PURSUANT TO SECTION 7 OF THE SECOND AMENDMENT OF LEASE”, and (b) Landlord gives the
Floor Surrender Notice, it shall state, in bold-faced capitalized letters on the top of the first page thereof: “LANDLORD
HEREBY ELECTS TO TERMINATE THE LEASE WITH RESPECT TO THE SURRENDER FLOORS EFFECTIVE AS OF [DATE (i.e., the Floor Surrender Date)]
PURSUANT TO SECTION 7 OF THE SECOND AMENDMENT OF LEASE”.

 

(iii)        If
at any time subsequent to July 31, 2016 but on or prior to January 31, 2017, (w) Tenant shall have not have then exercised the
Additional Extended Term Option, (x) neither Landlord nor Tenant shall have previously exercised the Floor Surrender Option, (y)
Tenant in good faith seeks to sublease all or a portion of the Surrender Floors, and (z) at the time of the giving of the notice
referenced herein, Tenant is then Not in Material Default, Tenant may by written notice to Landlord (which notice shall be addressed
to the attention of Mr. Samuel Rosenblatt and shall have written in bold-faced capitalized letters at the top of the first page
thereof: “LANDLORD MUST EXERCISE ITS FLOOR SURRENDER OPTION WITHIN THE EARLIER OF NINETY (90) DAYS OF THE GIVING OF THIS
NOTICE AND JANUARY 31, 2017 OR LANDLORD SHALL BE DEEMED TO HAVE WAIVED ITS RIGHT TO EXERCISE ITS FLOOR SURRENDER OPTION”)
 request that Landlord exercise the Floor Surrender Option, provided that such notice is accompanied by either a written agency
agreement between Tenant and a recognized brokerage firm for the sublease of the Surrender Floors or a written term sheet submitted
by a proposed sublessee (or by Tenant and agreed to by the proposed sublessee) of the Surrender Floors. If Landlord fails to exercise
the Floor Surrender Option within the earlier of ninety (90) days of such request and January 31, 2017, then notwithstanding the
terms of this Section 7, Landlord shall be deemed to have waived its right to exercise the Floor Surrender Option. Nothing
in this clause (iii) shall be deemed to permit Landlord or Tenant the right to exercise the Floor Surrender Option (or give
a Floor Surrender Notice) after January 31, 2017.

 

(iv)        If
either party exercises the Floor Surrender Option, then from and after the Floor Surrender Date, the Tenant’s Share and the
Tenant’s Electric Percentage shall be deemed to be sixty-eight and seventy one-hundredths percent (68.70%).

 

(v)         Tenant
may exercise the Floor Surrender Option only if, at the time of the giving of the Floor Surrender Notice and on the Floor Surrender
Date, (i) Tenant is then Not in Material Default, (ii) Tenant shall have not subleased more than 25% of the Premises (other than
to a Related Entity), and (iii) Tenant shall have not assigned the Lease (other than to a Related Entity).

 

(vi)        Tenant
may exercise the Floor Surrender Option only if the Floor Surrender Notice is accompanied by the Guaranty, executed by and acknowledged
on behalf of the

 

    	 	-4-	 

     

    

 

Guarantor
and any required agent for service of process. Landlord shall return the LOC to Tenant within thirty (30) days of the delivery
of the Guaranty, provided Tenant is then Not in Material Default (it being agreed that if the LOC is not returned to Tenant because
Tenant is then so in default under the Lease, upon the curing of such default, Landlord shall return the LOC to Tenant).

 

(vii)       In
the event Tenant exercises the Floor Surrender Option, the Term shall be extended for the Additional Extended Term, whereupon all
references in the Lease to the “Term” or the “term” shall be deemed to mean the term, as extended by the
Additional Extended Term, and all references in the Lease to the “Expiration Date” shall be deemed to mean and refer
to the Additional Extended Term Expiration Date, unless sooner terminated as provided in the Lease.

 

(viii)      Neither
Landlord nor Tenant may exercise the Floor Surrender Option, and this Section 7 shall be of no force and effect, upon Tenant’s
exercise of the Additional Extended Term Option.

 

(ix)         In
the event Tenant exercises the Floor Surrender Option, then from and after the Floor Surrender Date, the Fixed Annual Rent (without
electric) shall be as provided on Exhibit B annexed hereto.

 

(x)          In
the event Landlord gives the Floor Surrender Notice, then from and after the Floor Surrender Date, the Fixed Annual Rent (without
electric) shall be as provided on Exhibit C annexed hereto.

 

(xi)         In
the event Tenant exercises the Floor Surrender Option, then provided Tenant is then Not in Material Default, fifty percent (50%)
of the Fixed Annual Rent (without electric) for each of the first (1st) through twentieth (20th) months of
the Term from and after the Floor Surrender Date shall be abated. If Tenant shall not receive the abatement of any Fixed Annual
Rent to which it is otherwise entitled pursuant to this Section 7(xi) as a result of Tenant’s default under the Lease,
then upon the curing of such default, any such Fixed Annual Rent which was not so abated shall be applied as an abatement to the
next installment(s) of Fixed Annual Rent coming due until all such abatement is fully applied.

 

(xii)        In
the event Tenant exercises the Floor Surrender Option, then Tenant shall be entitled to the Additional Extended Term Work Allowance
(as hereinafter defined).

 

(xiii)       In
the event Landlord exercises the Floor Surrender Option, Landlord shall reimburse (or, at Landlord’s option upon written
notice to Tenant, credit against Rent) Tenant for Tenant’s reasonable, out-of-pocket costs actually paid by Tenant in relocating
Tenant’s personalty, trade fixtures and equipment located in the third (3rd) floor of the Building to a location elsewhere
in the Premises selected by Tenant within thirty (30) days of Landlord’s receipt of invoice therefor, provided in no event
shall Landlord’s obligations under this subparagraph exceed the sum of $600,000.

 

(xiv)      Upon
the Floor Surrender Date, Tenant shall vacate and surrender to Landlord full and complete vacant, broom clean possession of the
Surrender Floors in accordance with the provisions of Article 12 of the Original Lease (subject to the terms below), as
if said Floor Surrender Date were the original expiration date thereof with respect to the Surrender Floors and Landlord agrees
to accept the Surrender Floors in their then “as-is” condition; provided that (a) Tenant shall not be required to remove
any alterations or fixtures from the Surrender Floors and shall have no restoration obligation with respect thereto (including,
without limitation, with

 

    	 	-5-	 

     

    

 

respect to any HVAC Systems or Building
Systems serving the Surrender Floors), and (b) Tenant shall be entitled to relocate Tenant’s personalty and equipment
located on any of the Surrender Floors to a separate floor in the Premises (such location, the “Relocation
Floor”) selected by Tenant without obtaining Landlord’s prior consent to the installation thereof on the
Relocation Floor (although Tenant shall nevertheless be obligated to comply with all of the other terms and conditions of the
Lease in connection therewith to the extent applicable to Non-Structural Alterations), provided that if the Relocation Floor
is the fifth (5th) floor of the Building, Tenant shall be required to provide sound and vibration buffering
material and/or equipment for such fifth (51
floor that reduces the noise and vibration therefrom to a level reasonably acceptable to Landlord and any occupant of the
fourth (4th) floor. In the event Tenant fails to timely surrender any of the Surrender Floors on the Floor
Surrender Date (as the same may be extended by Force Majeure delays), Tenant’s liability under Article 12 of the
Original Lease for liquidated damages for its holdover shall be calculated based on the monthly Fixed Annual Rent and
Additional Rent which was in effect immediately prior to the Floor Surrender Date with respect to the Surrender Floor(s) that
Tenant so failed to timely surrender. Upon the Floor Surrender Date, Tenant (provided Tenant shall have timely surrendered
possession thereof in accordance with the terms of this Section 7(xiii)) shall be relieved of any obligations under
the Lease with respect to the Surrender Floors for the period following the Floor Surrender Date, other than (i) those
obligations of Tenant accruing prior to the Floor Surrender Date that are expressly provided in the Lease to survive the
expiration or sooner termination of the Lease, and (ii) those obligations of Tenant expressly set forth in this Second
Amendment with respect to the Surrender Floors. Upon the Floor Surrender Date, Landlord shall be relieved of any obligations
under the Lease with respect to the Surrender Floors for the period following the Floor Surrender Date, other than (i) those
obligations of Landlord accruing prior to the Floor Surrender Date that are expressly provided in the Lease to survive the
expiration or sooner termination of the Lease, and (ii) those obligations of Landlord expressly set forth in this Second
Amendment with respect to the Surrender Floors. From and after the Floor Surrender Date, all references in the Lease to the
“Premises” shall be deemed to exclude the Surrender Floors. Upon request of Landlord or Tenant, Tenant and
Landlord shall enter into an agreement in form reasonably satisfactory to the parties stating the Floor Surrender
Date.

 

		8.	Tenant’s Work Allowance; Additional Extended Term
Work Allowance.

 

A.           (a)          Landlord
shall provide to Tenant a tenant improvement allowance in the amount of sums expended by Tenant on Tenant’s leasehold improvements
and alterations to the Premises (“Tenant’s Work”), but in no event greater than $1,438,000.00 (“Tenant’s
Work Allowance”). No more than ten percent (10%) of Tenant’s Work Allowance shall be applied to Soft Costs (as
hereinafter defined). Such Tenant’s Work Allowance shall be made in Pro Rata Installments (as hereinafter defined) within
thirty (30) days of Tenant’s request for payment, but in no event more than once per month, and disbursement therefor must
be requested by Tenant within eighteen (18) months of the Effective Date (the “Work Allowance Outside Date”),
which Work Allowance Outside Date shall be extended by (i) up to ninety (90) days for Force Majeure delays (as hereinafter defined),
and (ii) one (1) day for each day after the twentieth (20th) llay that Landlord shall fail shall to respond to any request by Tenant
to Landlord for Landlord’s approval to plans and specifications for Tenant’s Work (which response, if a disapproval
of Tenant’s plans and specifications, shall include reasonably detailed reasons therefor). If request by Tenant for the disbursement
of such Tenant’s Work Allowance or any portion thereof is not received by the Work Allowance Outside Date, Tenant shall be
deemed to have forfeited Tenant’s Work Allowance or the then undisbursed amount of Tenant’s Work Allowance. Such Tenant’s
Work Allowance shall be given to Tenant upon satisfaction of the following conditions with respect to each such request for payment:

 

    	 	-6-	 

     

    

 

(i)          Tenant
shall have delivered to Landlord a completed requisition for payment, signed and certified as true by Tenant’s architect
(provided that if Tenant has not retained an architect in connection with such Tenant’s Work, such requisition shall be signed
and certified as true by Tenant and Tenant’s contractor), stating the amount requested for payment, which shall include an
itemized breakdown of the costs and expenses incurred by Tenant, stating the percentage of Tenant’s Work that has been completed,
and shall indicate a minimum of ten percent (10%) retainage of payments by Tenant to its contractors (it being understood that
any request for payment hereunder shall not be on account of such required retainage, other than the request for payment of the
retainage) accompanied by copies of invoices, bills or receipts (or other evidence reasonably satisfactory to Landlord) for the
costs with respect to which such request for payment is being made;

 

(ii)         Such
Tenant’s Work shall have been completed in accordance with plans and specifications approved by Landlord and otherwise in
accordance with the Lease (including, without limitation, in accordance with the terms and conditions of Article 8 of the
Original Lease to the extent applicable to such Tenant’s Work) and such completion shall be certified by Tenant’s architect
(provided that if Tenant has not retained an architect in connection with such Tenant’s Work, such requisition shall be signed
and certified as true by Tenant and Tenant’s contractor);

 

(iii)        Tenant
is then Not in Material Default (provided that if such installment of Tenant’s Work Allowance shall not be given to Tenant
because Tenant is so in default, upon the curing of such default, such installment of Tenant’s Work Allowance shall be given
to Tenant provided Tenant is otherwise entitled thereto in accordance with the terms and conditions of this Section); and

 

(iv)        Tenant
shall have fully paid (other than for any retainage amounts) all bills for labor, materials and services in connection with Tenant’s
Work performed through the immediately prior request for payment of Tenant’s Work Allowance, and Tenant shall provide Landlord
with (x) satisfactory evidence of payment thereof, including paid bills and cancelled checks, and (y) executed lien waivers from
all contractors and subcontractors respecting work performed.

 

(b)          The
final Pro Rata Installment for Tenant’s Work, which shall not be less than ten percent (10%) of Tenant's Work Allowance (or,
if applicable, the Additional Extended Term Work Allowance, as hereinafter defined), shall not be paid until, in addition to satisfaction
of the provisions above, Tenant provides Landlord with evidence that the applicable municipal department has issued the appropriate
sign-off relating to Tenant’s Work.

 

(c)          “Pro
Rata Installments” shall mean the cost of the portion of Tenant’s Work performed multiplied by a fraction, the
numerator of which is Tenant’s Work Allowance (or, if applicable, the Additional Extended Term Work Allowance) and the denominator
of which is the total cost of Tenant’s Work.

 

(d)          “Soft
Costs” shall mean the cost of architectural, planning, engineering, and similar professional and filing fees and permit
fees in connection with Tenant’s Work.

 

B.           In
the event that Tenant exercises the Floor Surrender Option or the Additional Extension Option, Landlord shall provide to Tenant
a separate tenant improvement allowance in the amount of sums expended by Tenant on Tenant’s Work (the “Additional
Extended Term

 

    	 	-7-	 

     

    

 

Work Allowance”),
which Additional Extended Term Work Allowance (x) shall in no event be greater than $7,190,000 if Tenant exercises the Additional
Extended Term Option without Landlord or Tenant having first exercised the Floor Surrender Option, or (y) shall in no event be
greater than $5,255,000 if either (a) Tenant exercises the Additional Extended Term Option after Landlord shall have first exercised
the Floor Surrender Option or (b) Tenant exercises the Floor Surrender Option. No more than ten percent (10%) of the Additional
Extended Term Work Allowance shall be applied to Soft Costs. Such Additional Extended Term Work Allowance shall be made in Pro
Rata Installments within thirty (30) days of Tenant’s request for payment, but in no event more than once per month, and
disbursement therefor must be requested by Tenant within two (2) years following the Floor Surrender Date or the Additional Extended
Term Rent Reset Date, as applicable (the “Additional Extended Term Work Allowance Outside Date”), which Additional
Extended Term Work Allowance Outside Date shall be extended by (i) Force Majeure delays, (ii) one (1) day for each day after the
twentieth (20th) day that Landlord shall fail shall to respond to any request by Tenant to Landlord for Landlord’s
approval to plans and specifications for Tenant’s Work (which response, if a disapproval of Tenant’s plans and specifications,
shall include reasonably detailed reasons therefor), and (iii) any delay (other than delays described in clause (ii) above)
that Tenant actually encounters in the performance of Tenant’s Work that is caused by Landlord’s failure to comply
with any express obligations of Landlord under the Lease to the extent continuing for a period of more than ten (10) days following
written notice from Tenant of Landlord’s failure to so comply. Such Additional Extended Term Work Allowance shall be given
to Tenant upon satisfaction of the conditions described in subclauses 8(A)(a)((i) through (iv) above with respect to each
such request for payment.

 

C.           If
Tenant satisfies all of the conditions to payment of the Tenant’s Work Allowance and/or the Additional Extended Term Work
Allowance in accordance with this Section 8 and Landlord fails to pay to Tenant any amount of the Tenant’s Work Allowance
and/or the Additional Extended Term Work Allowance on or before the date on which the same is due and payable to Tenant under this
Section 8, and provided that such failure continues for 30 days after Tenant notifies Landlord of such failure (which notice
shall state in bold-faced capitalized letter of the top of the first page thereof: “THIS IS A NOTICE OF A CLAIMED OFFSET
RIGHT GIVEN IN ACCORDANCE WITH SECTION 8 OF THE SECOND AMENDMENT”), then Tenant may set off such amount against
the next installments of Rent coming due under the Lease. If Landlord has reasonable grounds to dispute such amount owed to Tenant,
Landlord shall have the right within such 30-day period to deliver written notice to Tenant that Landlord disputes Tenant’s
entitlement to the amount claimed by Tenant, together with a reasonably detailed explanation of the reasons therefor. If Landlord
fails to deliver such written notice to Tenant within such 30-day period, Landlord shall be deemed to have accepted Tenant’s
entitlement to the amount claimed by Tenant and Tenant’s set off right specified above. In the event Landlord delivers such
written notice to Tenant within such 30-day period as provided above, the parties shall, in good faith, resolve such dispute(s)
in a timely matter. If within 20 days after expiration of such 30-day period the parties are unable to resolve such dispute, then
either party shall have the right to submit such dispute to arbitration before the AAA or any successor thereto. The parties agree
that, notwithstanding anything to the contrary contained in the Lease: (1) the unsuccessful party in such arbitration will pay
to the successful party all reasonable attorneys’ fees and disbursements incurred by the successful party in connection with
such arbitration, and will pay any fees and disbursements due to AAA (or the organization administering the arbitration) and the
AAA Arbitrator and, to the extent the “successful” party cannot be clearly identified, each party will bear its own
costs and expenses and the parties will pay their equal share of any fees and disbursements due to AAA (or the organization administering
the arbitration) and the AAA Arbitrator; (2) arbitration pursuant to this Section

 

    	 	-8-	 

     

    

 

8(C)
is intended to be the sole and exclusive method of arbitration to be utilized by the parties and the sole and exclusive dispute
resolution method to be utilized by the parties concerning any dispute described in this Section 8(C); (3) judgment may
be had on the decision and award of the arbitrator so rendered in any court of competent jurisdiction (each party hereby consenting
to the entry of such judgment in any such court); (4) the AAA Arbitrator shall have no right to award damages (though the foregoing
shall not preclude the AAA Arbitrator from issuing a determination that results in the payment or credit from one party to the
other if such payment or credit is the subject matter of such arbitration or that results in Tenant being entitled to set off against
Rent); and (5) any decision or award rendered in such arbitration, whether or not such decision or award has been entered for judgment,
shall be final and binding upon Landlord and Tenant and shall constitute an “award” by the AAA Arbitrator within the
meaning of the applicable arbitration rules and laws. If any such dispute in arbitration is resolved in favor of Tenant, then the
amount in dispute shall be paid to Tenant within 10 days after the determination of the AAA Arbitrator, failing which Tenant may
offset the amount due to Tenant against the next installments of Rent due under the Lease. The provisions of this Section 8(C)
shall survive the expiration or sooner termination of the Lease.

 

D.           The
Tenant’s Work Allowance and, if applicable, the Additional Extended Term Work Allowance, are for the purpose of constructing
or improving qualified nonresidential real property for use in the Tenant’s trade or business at the Premises.

 

		9.	Right of First Offer.

 

		A.	omitted

 

B.           Subject
to the terms of this Section 9, if at any time following the Initial Surrender Floor Leasing (as hereinafter defined), one
or more Surrender Floors (or any portion of a Surrender Floor comprising 50% or more thereof) (hereafter, “Applicable
Option Space”) either becomes vacant and available for occupancy or is scheduled (or reasonably anticipated by Landlord)
to become vacant and available for occupancy, Landlord shall institute the procedure described in this Section 9 with respect
to such Applicable Option Space (and Landlord shall not enter into a lease or other occupancy agreement for such Applicable Option
Space without first complying with such procedure) by giving notice thereof (the “Option Notice”) to Tenant,
which Option Notice shall (i) describe the Applicable Option Space, and (ii) set forth the date on which such Applicable Option
Space is available or is scheduled (or reasonably anticipated by Landlord) to become vacant and available for occupancy (such date
being referred to herein as the "Scheduled Option Space Commencement Date”); provided, however,
Landlord may not give the Option Notice more than 180 days prior to the applicable Scheduled Option Space Commencement Date.

 

C.           Tenant
shall have the option (the “ROFO Option”) to lease the Applicable Option Space for a term (the
“Option Term”) commencing on the Option Space Commencement Date (as hereinafter defined) and expiring on
the Additional Extended Term Expiration Date by giving notice thereof (the “Option Response Notice”) to
Landlord not later than the tenth (101h) business day after the date that Landlord gives the Option Notice to Tenant. Time
shall be of the essence as to the date by which Tenant must give the Option Response Notice to Landlord to exercise the ROFO
Option. If, following the giving of an Option Notice, Tenant does not timely give an Option Response Notice to Landlord with
respect to such Option Notice, then Landlord shall thereafter have the right to lease the Applicable Option Space described
in such Option Notice to any other party on terms acceptable to Landlord in Landlord’s sole discretion without being
required to make any other offer to Tenant until such Applicable Option Space shall again

 

    	 	-9-	 

     

    

 

 

become
vacant and available for occupancy or be scheduled (or reasonably anticipated by Landlord) to become vacant and available for occupancy
(subsequent to any leasing that follows Tenant’s failure to timely give an Option Response Notice to Landlord), whereupon
the terms of this Section 9 shall again apply prior to Landlord entering into a lease or occupancy agreement of such Applicable
Option Space (unless expressly otherwise provided in this Section 9).

 

D.           Tenant
shall not have the right to exercise the ROFO Option (and, accordingly (x) Landlord shall have no obligation to give an Option
Notice to Tenant, and (y) Landlord shall have the right to lease the Applicable Option Space to any other party without first offering
the Applicable Option Space to Tenant as contemplated by this Section 9) if, on the date that Landlord gives the Option
Notice to Tenant: (i) Tenant is then in Material Default, (ii) Tenant shall have subleased more than 25% of the Premises (other
than to a Related Entity), or (iii) Tenant shall have assigned the Lease (other than to a Related Entity).

 

E.           The
terms of this Section 9 shall only apply, and Landlord shall only be obligated to offer the Applicable Option Space and
Tenant shall only have the right to exercise the ROFO Option, if either (A) Landlord shall have exercised the Floor Surrender Option
and Tenant shall have subsequently exercised the Additional Extended Term Option, or (B) Tenant shall have exercised the Floor
Surrender Option.

 

F.           The
terms of this Section 9 shall not apply, and Tenant shall not have the right to exercise the ROFO Option, with respect to
Landlord’s initial leasing of any of the Surrender Floors (the “Initial Surrender Floor Leasing”) directly
following either (A) Landlord’s exercise of the Floor Surrender Option and Tenant’s subsequent exercise of the Additional
Extended Term Option, or (B) Tenant’s exercise of the Floor Surrender Option, as applicable.

 

G.           The
terms of this Section 9 shall not apply, and Tenant shall not have the right to exercise the ROFO Option, if pursuant to
a Declaration, the owner of the Option Space shall not be (i) the same party as Landlord under the Lease, or (ii) a wholly-owned
subsidiary of Landlord, the parent entity of Landlord, or any corporation or entity which controls or is controlled by Landlord
or is under common control with Landlord (it being agreed that the term “control” as used herein shall mean, in the
case of a corporation or other entity, ownership or voting control, directly or indirectly, of at least fifty (50%) percent of
all of the general or other partnership (or similar) interests therein or the power to determine the actions of such entity).

 

H.           The
terms of this Section 9 shall not apply to Landlord’s leasing or renewing or extending any Applicable Option Space
to any individual or entity that then occupies such Applicable Option Space or any portion thereof, regardless of whether such
leasing is pursuant to an option or right contained in such individual or entity’s lease. Nothing in this Section 9(H)
shall be deemed a waiver of Landlord’s obligation to comply with the terms of this Section 9 with respect to any Applicable
Option Space, to the extent this Section 9 is applicable.

 

I.           Tenant
shall not have the right to exercise the ROFO Option from and after the Option Cutoff Date (as hereinafter defined), and, accordingly,
from and after the Option Cutoff Date, (I) Landlord shall have no obligation to give an Option Notice to Tenant with respect to
the Option Space (or any portion thereof), and (II) Landlord shall have the right to lease the Option Space (or such portion thereof)
to any other party without first offering the Option Space (or such portion thereof) to Tenant as contemplated by this Section
9. The term “Option Cutoff Date” shall mean the date that is four (4) years before the Additional Extended
Term Expiration Date.

 

    	 	-10-	 

     

    

 

J.           If
Tenant exercises the ROFO Option in accordance with the provisions of this Section 9, then, on the Option Space Commencement
Date (as hereinafter defined) (provided Tenant has not revoked Tenant’s Option Response Notice prior thereto in accordance
with the terms of Section (K) hereof), (i) the Applicable Option Space shall be added to the Premises for purposes of the
Lease (except as otherwise hereinafter provided), (ii) Landlord shall not be obligated to perform any work or make any installations
in the Applicable Option Space (except as expressly provided in Section (K) hereof) or grant Tenant a work allowance therefor;
(iii) the Tenant’s Share and Tenant’s Electric Percentage shall be increased by eight and four hundred thirty-three
one-thousands percent (8.433%) for each full Surrender Floor that is included in the Applicable Option Space (and equitably prorated
for any partial Surrender Floor that is included within the Applicable Option Space) (by way of example only, if the Tenant’s
Share is 68.70% and the Applicable Option Space is the entire second (2nd) floor, then Tenant’s Share shall increase to 77.133%),
(iv) Tenant’s obligation with respect to the payment of Rent for the Applicable Option Space shall be subject to the Guaranty
and Guarantor shall enter into such agreement as is consistent with the terms of the existing Guaranty as Landlord shall reasonably
request confirming same, and (iv) the Fixed Annual Rent for the Applicable Option Space shall be an amount equal to the FMV (as
hereinafter defined) of the Applicable Option Space as of the Option Space Commencement Date (it being agreed that the FMV shall
be as defined in Section 9(L)).

 

K.          The
“Option Space Commencement Date” shall be the date on which Landlord delivers vacant and exclusive possession
of the Applicable Option Space to Tenant free of all personal property and signage of any previous occupant of the Applicable
Option Space, with electricity available thereto and free of any violations within Landlord’s control to remediate that
would prevent Tenant from obtaining a permit for any improvements to the Applicable Option Space that are permitted under this
Lease. Landlord and Tenant agree that any failure to have the Premises available to Tenant for its occupancy on the Scheduled
Option Space Commencement Date shall in no way affect the validity of this Section 9 or the obligations of Tenant hereunder,
nor shall the same be construed in any wise to extend the term of the Lease or impose any liability on Landlord; provided,
however, that if the Option Space Commencement Date does not occur within 90 days of the Scheduled Option Space Commencement
Date, then Tenant may revoke Tenant’s Option Response Notice with respect to such Applicable Option Space by notice given
to Landlord and any time subsequent to such 901 day
but prior to the occurrence of the Option Space Commencement Date. The provisions of this Section are intended to constitute “an
express provision to the contrary” within the meaning of Section 223-a of the New York Real Property Law.

 

L.           The
term “FMV” shall mean the then-prevailing annual fair market rental value of the Applicable Option Space on
the Option Space Commencement Date, taking into account all relevant factors. The FMV shall be determined by the mutual written
agreement of Landlord and Tenant. In the event that Landlord and Tenant shall not have reached mutual agreement as to the FMV on
or before the day that is thirty (30) days following the Option Response Notice, then Landlord and Tenant each shall, no later
than the day that is sixty (60) days following the Option Response Notice, select a Real Estate Appraiser, as hereinafter defined.
If either party shall fail to so appoint a Real Estate Appraiser, the one Real Estate Appraiser so appointed shall proceed to determine
the FMV. In the event that the Real Estate Appraisers selected by Landlord and Tenant agree as to the FMV, said determination shall
be binding on Landlord and Tenant. In the event that the Real Estate Appraisers selected by Landlord and Tenant cannot agree as
to the FMV on or before the day that is ninety (90) days following the Option Response Notice, then said Real Estate Appraisers
shall jointly select a third Real Estate Appraiser, provided that if they cannot agree on the third Real Estate Appraiser on or
before the day that is one hundred twenty (120)

 

    	 	-11-	 

     

    

 

days following
the Option Response Notice, then said third Real Estate Appraiser shall be selected in accordance with the rules prescribed by
the American Arbitration Association in New York, New York (or any successor thereto). The FMV shall then be determined by the
third Real Estate Appraiser no later than the day that is one hundred fifty (150) days following the Option Response Notice and
said determination shall be binding on Landlord and Tenant. The term “Real Estate Appraiser” shall mean a fit
and impartial person having not less than ten (10) years’ experience as an appraiser of leasehold estates relating to office
premises in buildings comparable to the Building located in New York County, and in addition, shall have had experience appraising
leasehold estates in the vicinity of the Building. The appraisal shall be conducted in accordance with the provisions of this Section
and, to the extent not inconsistent herewith, in accordance with the prevailing rules of the American Arbitration Association in
New York (or any successor thereto). The final determination of the Real Estate Appraiser(s) shall be in writing and shall be binding
and conclusive upon the parties, each of which shall receive counterpart copies thereof. In rendering such decision the Real Estate
Appraiser(s) shall not add to, subtract from or otherwise modify the provisions of the Lease. Landlord and Tenant shall each pay
the fees of their respective Real Estate Appraisers. The fees of the third Real Estate Appraiser, if any, shall be divided evenly.
If by the Option Space Commencement Date the Fixed Annual Rent pursuant to this Section shall not have been determined by the Real
Estate Appraiser(s), Tenant shall pay Fixed Annual Rent hereunder until such determination is made at the per floor rate set forth
on Exhibit D hereto (prorated for partial floors), subject to adjustment upon determination of such Fixed Annual Rent whether by
appraisal by the Real Estate Appraiser(s) as hereinabove provided or by agreement of Landlord and Tenant. Upon such determination,
Tenant shall promptly pay to Landlord any underpayment of Fixed Annual Rent and, in the event of any overpayment of Fixed Rent
during such period, Landlord shall credit the amount of such overpayment of Fixed Annual Rent against the payments of Fixed Annual
Rent next coming due until such time as the overpayment has been fully credited to Tenant.

 

		10.	Additional Provisions Regarding Floor Surrender.

 

In the
event either Landlord or Tenant shall exercise the Floor Surrender Option, then during any period of time that the Premises shall
not include all of the Surrender Floors, the following provisions shall apply:

 

A.           Landlord,
at Landlord’s expense, shall submeter the Surrender Floors (other than any Surrender Floors, or partial Surrender Floors,
if applicable, that become part of the Premises pursuant to Section 9 hereof) to measure the consumption of electrical energy
thereon. From and after the Floor Surrender Date, the amount Tenant shall be obligated to pay pursuant to Article 41 of
the Original Lease shall have offset therefrom an amount equal to the product of (x) the actual usage of electricity in the Surrender
Floors (other than any Surrender Floors, or partial Surrender Floors, if applicable, that become part of the Premises pursuant
to Section 9 hereof), as measured by such meter or submeters, and (y) the electricity rate or rates at which Landlord buys
electricity from the public utility company supplying electric current to the Building in effect during such applicable billing
period.

 

B.           The
words “and the Building” appearing in the fourth line of Section 23.01 of the Original Lease shall be deleted
and replaced with “and shall cause such rubbish to be removed from the Building”.

 

C.           To
the extent necessary, Landlord, at its sole cost and expense, shall separate the HVAC System serving the Surrender Floors from
the HVAC System serving the Premises (including, without limitation, the water tower serving the HVAC System). With respect to
the

 

    	 	-12-	 

     

    

 

period
from and after the Floor Surrender Date, (x) Tenant shall have no obligation to pay for electricity, water, gas or steam consumed
by or used in connection with the HVAC System serving the Surrender Floors and accordingly from and after the Floor Surrender Date,
any charges payable by Tenant for the HVAC System shall be equitably apportioned to exclude therefrom the cost of supplying electricity,
water, gas or steam to the HVAC System serving the Surrender Floors, and (y) except as otherwise expressly provided in this Second
Amendment, Tenant shall have no obligation to repair, maintain or replace any Building Systems or services serving the Surrender
Floors, except to the extent caused by the negligence or willful misconduct of Tenant, its agents, employees or contractors.

 

D.           From
and after the Floor Surrender Date, Section 44.02 of the Original Lease shall be amended as follows: (v) upon Landlord’s
request, Tenant shall replace the brass lobby entry doors with entry doors reasonably acceptable to Landlord; (w) any sign installed
pursuant to clause 44.02(i) shall not exceed twenty-four inches (24”) by twenty-four inches (24”); (x) clause
44.02(ii) shall be deleted in its entirety and replaced with “on a lobby wall location above the security desk or another
lobby wall location proposed by Tenant and reasonably acceptable to Landlord, not to exceed twenty-four (24”) inches by twenty-four
(24”) inches; (y) clauses 44.02(iii) and 44.02(iv) shall be deleted; and (z) Tenant shall promptly remove any signs
that do not then comply with the foregoing (other than the billboard sign on the Building’s roof), and repair any damage
to the Building caused by the installation or removal thereof (it being acknowledged that as of the Effective Date, no such signs
or obligation to repair exists). Any additional signs installed by Landlord in the Building lobby, including for any other tenants
in the Building, shall not be larger than sixteen (16”) inches by sixteen (16”) inches. Nothing in this Section D shall
preclude Landlord from installing and maintaining a lobby directory for Building occupants.

 

E.           From
and after the Floor Surrender Date, the restrictions imposed on Landlord in clauses 44.03(i) and (ii) of the Original Lease
shall be limited only to the areas that are (x) within twenty-five feet (25’) from the western-most edge of the marble surrounding
the front entrance doorway to the Building (as it exists on the Effective Date), and (y) above the third (3rd) floor
of the Building.

 

F.           If
Tenant shall consume water for any reason other than customary lavatory and cleaning purposes and for one washing machine, Landlord
may install, at Tenant's cost and expense, a meter to measure water consumption in the Premises whereupon Tenant shall pay to Landlord,
as Additional Rent, the cost of the water consumed in the Premises (but not the Surrender Floors), as measured by such meter.

 

G.           If,
during any period (following the exercise by Landlord or Tenant of the Floor Surrender Option) that the main Building lobby shall
be used by any other tenants or occupants of the Building as their entrance or exit (other than for emergency egress only):

 

(i) except
to the extent caused by the negligence or willful misconduct of Tenant, its agents, employees, contractors or invitees, Landlord
shall be solely responsible for operating, maintaining, repairing and replacing the lobby and the Lobby HVAC,

 

(ii) notwithstanding
anything to the contrary contained in Article 59 of the Original Lease (as amended hereby), Landlord shall maintain an attendant
in the Building lobby during Business Hours (as hereinafter defined),

 

    	 	-13-	 

     

    

 

(iii)
Tenant’s rights under Article 59 of the Original Lease (as modified hereby) to maintain personnel in the Building
lobby shall be limited to Tenant’s employees and invitees during non-Business Hours (and such personnel shall not interfere
with access by other occupants and their invitees to portions of the Building other than the Premises), and

 

(iv) Notwithstanding
anything to the contrary contained in Article 59 of the Original Lease (as amended hereby), Landlord shall install a card-key
or similar access system (“Landlord’s Access System”) at the Building entrance to provide access through
the main entrance doors in the Building lobby. To the extent that Tenant has security cameras in any of the Surrender Floors, Tenant
shall be obligated to remove same at its sole cost and expense. In addition, Tenant, at its sole cost and expense, shall remove
the Surrender Floors from Tenant’s card-key reader system in the Building elevators.

 

As used herein, the term “Business
Hours” shall mean the hours from 8:00 am to 6:00 pm on weekdays that are not holidays recognized by the Federal or State
governments or any of the labor unions serving the Building.

 

		11.	Lender Consent.

 

A.           The
parties acknowledge and agree that this Second Amendment is expressly subject to the consent of Aareal Capital Corporation (the
“Lender”). Upon Tenant’s execution and delivery to Landlord of this Second Amendment, Landlord shall use
commercially reasonably efforts to obtain such consent. Landlord shall advise Tenant of Lender’s approval or disapproval
within twenty (20) days following the date on which Tenant shall so execute and deliver to Landlord this Second Amendment and the
Cash Security (the “Lender Termination Date”).

 

B.           If
Landlord fails to obtain Lender’s consent to this Second Amendment on or prior to the Lender Termination Date, this Second
Amendment shall terminate and be void ab initio  and of no force and effect, other than those obligations and liabilities
hereunder that expressly survive such termination (although the Original Lease and First Amendment shall remain in full force and
effect in accordance with its terms).

 

		12.	Additional Revisions to the Lease.

 

		A.	Section 3.02 of the Original Lease is hereby
deleted in its entirety.

 

		B.	Clause
5.01(f) of the Original Lease is hereby deleted in its entirety.

 

C.           The
definition of “Force Majeure” in Section 11.04 of the Original Lease is (i) deleted and replaced with the following:
“the inability of Landlord or Tenant to perform an obligation accruing under this Lease (expressly excluding the payment
of Rent by Tenant) by reason of weather, Acts of God, strikes, or war.”, and (ii) shall be deemed to apply to all of Landlord’s
and Tenant’s obligations under the Lease (other than any monetary obligation of Tenant under the Lease).

 

		D.	Intentionally Omitted.

 

E.           Section
44.03 of the Original Lease is modified by deleting the words “for so long as the Tenant or anyone claiming through the
Tenant occupies at least seventy-five (75%) percent of the entire rentable portion of the Building, from the date hereof’
appearing in the first

 

    	 	-14-	 

     

    

 

(1st) through third (3rd)
lines thereof. Tenant acknowledges that any signage on the exterior of the Building on the Effective Date does not breach any of
the terms of Section 44.03 of the Original Lease. Section 44.03 remains subject to the terms of Section 10(E) of
this Second Amendment.

 

F.           The
following provisions of the Original Lease are hereby deleted in their entirety: Article 52, Article 53, Article
55, the first clause 58.07(iii), and the second clause 58.07(ii).

 

G.           Section
59.01 of the Original Lease is deleted and is revised to read as follows: “59.01 Tenant acknowledges and agrees that
Landlord shall not be responsible to, and currently does not intend to, staff, station or maintain any (i) electronic security
or surveillance systems or (ii) manned security, doormen or concierge, in or about the lobby, stairwells, elevators or common areas
of the Building. Tenant may, at Tenant’s sole cost and expense, station attendants at the lobby, as well as at the Premises.
Tenant hereby indemnifies and agrees to defend and hold Landlord, its members partners, directors, officers, employees, representatives,
servants and invitees, harmless from and against any and all claims, demands, suits, actions, proceedings, awards, judgments, orders,
damages, fines, penalties, costs, fees, expenses, and liabilities whatsoever, arising out of the acts or omissions of Tenant, its
members, partners, directors, officers, employees, representatives and servants stationed at the Building, acting or presumed to
be acting pursuant to the provisions of this Article.”

 

H.           Prior
to Tenant or its contractor performing any alterations or improvements to the Premises pursuant to this Second Amendment, Landlord
shall obtain, at its sole cost and expense and deliver to Tenant an ACP-5 Certification with respect to the Premises. In the event
such ACP-5 Certification indicates the presence of ACM’s at the Premises or the Building, Landlord shall, at its sole cost
and expense and without applicability to any tenant improvement allowance granted pursuant to this Second Amendment, take all actions
required, including without limitation, remediation of ACM’s in the Premises or the Building, in order for such work to be
performed in compliance with all applicable laws and regulations.

 

I.           Notwithstanding
anything to the contrary contained in the Lease, the parties hereby agree that Tenant shall have the right to perform non-structural
or cosmetic improvements or alterations to the Building’s lobby provided that such improvements or alterations shall be subject
to Landlord’s approval, not to be unreasonably withheld, conditioned or delayed.

 

J.           Notwithstanding
anything to the contrary contained in the Lease, Tenant shall have no obligation to comply with the provisions of the Americans
With Disabilities Act of 1990 and any municipal laws, ordinances and rules of like import, and any regulations adopted and amendments
promulgated pursuant to any of the foregoing (collectively, the “ADA”) to the extent applicable to (i) the Surrender
Floors from and after the Floor Surrender Date, and (ii) any work performed by or on behalf of Landlord for other tenants or occupants
of the Building or to the common areas of the Building.

 

K.          Landlord
shall indemnify, defend and save Tenant harmless from and against any liability, loss, claims, demands, damages or expenses (including
reasonable attorneys’ fees, disbursements and court costs) in connection with third party claims arising from any negligent
act or omission of Landlord or any one claiming through or under Landlord and any of their agents, contractors, employees or servants
(unless caused by the negligence or willful misconduct of Tenant or Tenant’s agents, representatives or contractors). The
provisions of this Section shall survive the Expiration Date or sooner termination of the Term.

 

    	 	-15-	 

     

    

 

L.           In
the event that Landlord or Tenant commences or engages in any legal action or proceeding against the other arising out of or in
connection with this Lease, the prevailing party shall recover its reasonable attorneys’ fees, disbursements and court costs
from the other in connection with such matter. The provisions of this Section shall survive the Expiration Date or sooner termination
of the Term.

 

M.       Landlord,
at its sole cost and expense, shall upgrade the two (2) passenger elevators in the Building (the “Upgraded Passenger Elevators”).
Landlord agrees to prosecute such work in the following manner:

 

(i)        Landlord
shall use Building-standard materials and equipment;

 

(ii)         Landlord
shall cause such work to be performed sequentially. During the progress of
such work, Landlord shall operate both of the Building’s freight elevators and one of the Building’s passenger elevators
during Business Hours for access to the Premises by Tenant, its employees, agents, contractors, subtenants, licensees and invitees;

 

(iii)        During
the performance of such work, Landlord shall provide one passenger elevator for use by Tenant, its employees, agents and invitees,
24 hours per day 7 days per week, subject to Building rules and emergencies (or if no passenger elevator is available during such
times as a result of mechanical failure, a freight elevator, at no charge to Tenant). Nothing herein shall be deemed to modify
Tenant’s rights and obligations under Article 60 of the Original Lease.

 

(iv)        Landlord
shall commence such work on or before August 1, 2016. Such work shall be performed diligently and Landlord shall use commercially
reasonable efforts to cause such work to be completed as expeditiously as reasonably possible. Such
work shall be performed and completed in a good and workmanlike manner so as to minimize interference with Tenant’s use of
and access to the Premises (although Landlord shall not be obligated to retain labor on an overtime basis); and

 

(v)         Following
Landlord’s completion of the Upgraded Passenger Elevators, Tenant, at its sole cost and expense, may install its own separate
card-key access system therein with respect to access to the Premises and may also install cameras in the Upgraded Passenger Elevators.

 

		13.	Brokerage.

 

Tenant
and Landlord each represents to the other that it has dealt with no broker or brokers other than Olmstead Properties, Inc. and
Savills Studley, Inc. (together, the “Broker”) in the negotiation of this Second Amendment. Tenant and Landlord
hereby indemnifies and agrees to hold the other harmless from any loss, cost, damage, expense, claim or liability arising out of
any inaccuracy or alleged inaccuracy of the above representation, including court costs and attorneys’ fees. Landlord shall
pay any commission due to the Broker pursuant to a separate agreement and Landlord shall indemnify and hold Tenant harmless for
its losses arising from Landlord’s failure to pay such commission. The provisions of this Section 13 shall survive
the termination or expiration of the Lease.

 

    	 	-16-	 

     

    

 

		14.	Notices.

 

A.           Section
27.01 of the Original Lease is deleted and replaced with the following: “27.01 Any bill, notice or demand (“Notices”)
from Landlord or Tenant to the other shall be in writing and if to Tenant shall be addressed to the Premises to the attention of
Chief Financial Officer, with a copy addressed to the Premises to the attention of Legal Department-General Counsel (and with a
copy of any default notice also sent to Barack Ferrazzano Kirschbaum & Nagelberg LLP, 200 West Madison Street, Suite 3900,
Chicago, Ill 60606 Attn: Julie Rademaker, Esq.), and if to Landlord shall be addressed to 240 West 40th Delaware LLC,
c/o Olmstead Properties, Inc., 575 Eighth Avenue, Suite 2400, New York, New York 10018, Attn: Mr. Samuel Rosenblatt. Notices shall
be given personally or by nationally recognized overnight courier service. Notices given personally shall be deemed given when
received or rejected, and Notices given by overnight courier shall be deemed given on the business day following the business day
on which such Notice was given to the overnight courier service. Notwithstanding the foregoing, bills sent from Landlord in the
ordinary course of business to Tenant may be sent through regular mail. Either party may designate a different address for which
Notices are to be given by delivering such designation to the other party in accordance with the provisions of this Article. In
addition, Tenant may designate a different address for which bills sent in the ordinary course of business are to be given by delivering
such designation to Landlord in accordance with the provisions of this Article.”

 

B.           Section
31.02(c) of the Original Lease is amended by deleting references to “(Attn: Ralph Sitt)”.

 

		15.	Miscellaneous.

 

A.           The
parties agree that the first applicable rent period on any of Exhibits B, C, D or E shall be the rent period in which the
Additional Extended Term Rent Reset Date, the Floor Surrender Date or the Option Space Commencement Date (as applicable) shall
occur, and that subsequent increases to the Fixed Annual Rent shall thereafter occur on the dates set forth in the applicable Exhibit.

 

B.           If
any of the provisions of the Lease, or the application thereof to any person or circumstance, shall, to any extent, be invalid
or unenforceable, the remainder of Lease or the circumstances other than those as to whom or which it is held invalid or unenforceable
shall not be affected thereby, and every provision of Lease shall be valid and enforceable to the fullest extent permitted by law.
In the event of any conflict between the Original Lease or the First Amendment and this Second Amendment, the terms of this Second
Amendment shall prevail. Tenant hereby certifies that, to the best of Tenant’s knowledge: (a) the Lease is in full force
and effect and has not been modified or amended except as herein provided, (b) Landlord is not now in default under the Lease,
and has completed all improvements and made all contributions (if any) required of Landlord under the Lease and Tenant knows of
no event which, with notice of the passage of time or both would constitute such a default, and (c) Tenant has made no demand against
Landlord and has no present right to make such demand with respect to charges, liens, defenses, counterclaims, offsets, claims,
or credits against the payment of rent or additional rent or the performance of Tenant’s obligations under the Lease. Landlord
hereby certifies that, to the best of Landlord’s knowledge: (w) the Lease is in full force and effect and has not been modified
or amended except as herein provided, (x) Tenant is not now in default under the Lease, and has completed all improvements and
made all contributions (if any) required of Tenant under the Lease and Landlord knows of no event which, with notice of the passage
of time or both would constitute such a default, (y) Landlord has made no demand against Tenant and has no present

 

    	 	-17-	 

     

    

 

right to
make such demand with respect to charges, liens, claims or the performance of Landlord’s obligations under the Lease, and
(z) the Building and the land of which the Premises form a part are not presently subject to the condominium form of ownership.
Except as modified hereby, the Lease shall remain in full force and effect, and as modified hereby, the Lease is ratified and confirmed
in all respects. The Lease may not be orally changed or terminated, nor any of its provisions waived, except by an agreement in
writing signed by the party against whom enforcement of any changes, termination or waiver is sought. This Second Amendment shall
be binding upon, and inure to the benefit of the parties hereto, their respective legal representatives, successors and assigns.
The parties hereto acknowledge that this Second Amendment shall not be binding upon the other party until both parties shall have
executed this Second Amendment and counterparts thereof shall have been delivered to the other. Tenant and Landlord each hereby
represents and warrants that it has full right, power and authority to enter into this Second Amendment and that the person executing
this Second Amendment on behalf of Tenant and Landlord, respectively, is duly authorized to do so. This Second Amendment may be
executed (i) in one or more counterparts, each of which shall constitute an original and all of which when taken together shall
constitute one and the same instrument and (ii) by facsimile or signatures given by pdf transmission.

 

[Signatures appear on following page.]

 

    	 	-18-	 

     

    

 

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

 

	 	240 WEST 40TH DELAWARE LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	/s/ Sam Rosenblatt
	 	 	Name: Sam Rosenblatt
	 	 	Title: President
	 	 	 
	 	THE DONNA KARAN COMPANY LLC,
	 	a New York limited liability company
	 	 	 
	 	By:	/s/ Patricia F. Kalberer
	 	 	Name: Patricia F. Kalberer
	 	 	Title: Chief Financial & Administrative Officer

 

[SIGNATURE PAGE TO THE DONNA KARAN COMPANY
LLC SECOND AMENDMENT OF LEASE]

 

     

     

    

 

Exhibit A

 

Fixed Annual Rent (without electric) From
and After the

Adjustment Date*

 

	Rent
    Period	 	Fixed
    Annual Rent	 
	Start Date	 	End Date	 	Annually	 	 	Monthly	 
	1/1/2016	 	12/31/2016	 	$	7,190,000.00	 	 	$	599,166.67	 
	1/1/2017	 	12/31/2017	 	$	7,333,800.00	 	 	$	611,150.00	 
	1/1/2018	 	12/31/2018	 	$	7,480,476.00	 	 	$	623,373.00	 
	1/1/2019	 	12/31/2019	 	$	7,630,085.52	 	 	$	635,840.46	 
	111/2020	 	7/31/2020	 	$	7,782,687.23	 	 	$	648,557.27	 

 

* provided,
however, if the Additional Extended Term Option or the Floor Surrender Option is exercised, then the Fixed Annual Rent from
and after the Extended Term Rent Reset Date or the Floor Surrender Date shall be as provided in Sections 6 or 7, as applicable.

 

    	 	A-1	 

     

    

 

Exhibit B

 

Fixed Annual Rent (without
electric) from and after (i) the Floor Surrender Date (as opposed to the giving of the Floor Surrender Notice), if Tenant exercises
the Floor Surrender Option, or (ii) the Additional Extended Term Rent Reset Date (as opposed to the giving of the Additional Extended
Term Notice), if Tenant exercises the Additional Extended Term Option subsequent to Landlord exercising the Floor Surrender Option

 

The rent schedule set forth on this Exhibit B
shall become effective on the Floor Surrender Date or the Additional Extended Term Rent Reset Date (as applicable) falling within
the applicable Rent Period specified below that is then in effect

 

	Rent
    Period	 	Fixed
    Annual Rent	 
	Start Date	 	End Date	 	Annually	 	 	Monthly	 
	Six (6) months following the Effective Date	 	7/3112017	 	$	5,885,600.00	 	 	$	490,466.67	 
	8/112017	 	7/3112018	 	$	6,003,312.00	 	 	$	500,276.00	 
	8/1/2018	 	7/3112019	 	$	6,123,378.24	 	 	$	510,281.52	 
	8/1/2019	 	7/3112020	 	$	6,245,845.80	 	 	$	520,487.15	 
	8/1/2020	 	7/31/2021	 	$	6,370,762.72	 	 	$	530,896.89	 
	8/1/2021	 	7/3112022	 	$	6,498,177.98	 	 	$	541,514.83	 
	8/1/2022	 	7/3112023	 	$	6,628,141.53	 	 	$	552,345.13	 
	8/1/2023	 	7/3112024	 	$	6,760,704.37	 	 	$	563,392.03	 
	8/1/2024	 	7/3112025	 	$	6,895,918.45	 	 	$	574,659.87	 
	8/1/2025	 	7/3112026	 	$	7,033,836.82	 	 	$	586,153.07	 
	8/1/2026	 	7/3112027	 	$	7,174,513.56	 	 	$	597,876.13	 
	8/112027	 	7/3112028	 	$	7,318,003.83	 	 	$	609,833.65	 
	8/112028	 	7/3112029	 	$	7,464,363.91	 	 	$	622,030.33	 
	8/1/2029	 	7/31/2030	 	$	7,613,651.18	 	 	$	634,470.93	 

 

    	 	B-1	 

     

    

 

Exhibit C

 

Fixed Annual Rent (without
electric) from and after the Floor Surrender Date (as opposed to the giving of the Floor Surrender Notice) if Landlord exercises
the Floor Surrender Option

 

The rent schedule set forth on
this Exhibit C shall become effective on the Floor Surrender Date falling within the applicable Rent Period specified below
that is then in effect

 

	Rent
    Period	 	Fixed
    Annual Rent	 
	Start Date	 	End Date	 	Annually	 	 	Monthly	 
	Six (6) months following the Effective Date	 	12/3112016	 	$	5,255,000.00	 	 	$	437,916.67	 
	1/112017	 	12/3112017	 	$	5,360,100.00	 	 	$	446,675.00	 
	11112018	 	12/3112018	 	$	5,467,302.00	 	 	$	455,608.50	 
	111/2019	 	12/31/2019	 	$	5,576,648.04	 	 	$	464,720.67	 
	1/1/2020	 	7/3112020	 	$	5,688,180.96	 	 	$	474,015.08	 

 

    	 	C-1	 

     

    

 

Exhibit D

 

Fixed Annual Rent (without
electric) per floor of the Applicable Option Space from and after the Option Space Commencement Date (as opposed to the giving
of the Option Notice) if Tenant exercises the ROFO Option and the FMV is not then determined

 

The rent schedule
set forth on this Exhibit D shall become effective on the Option Space Commencement Date falling within the applicable
Rent Period specified below that is then in effect

 

	Rent
    Period	 	Fixed
    Annual Rent	 
	Start Date	 	End Date	 	Annually	 	 	Monthly	 
	Six (6) months following the Effective Date	 	7/31/2017	 	$	722,400.00	 	 	$	60,200.00	 
	8/1/2017	 	7/3112018	 	$	736,848.00	 	 	$	61,404.00	 
	8/1/2018	 	7/3112019	 	$	751,584.96	 	 	$	62,632.08	 
	8/1/2019	 	7/3112020	 	$	766,616.66	 	 	$	63,884.72	 
	8/112020	 	7/3112021	 	$	781,948.99	 	 	$	65,162.42	 
	8/1/2021	 	7/3112022	 	$	797,587.97	 	 	$	66,465.66	 
	8/112022	 	7/3112023	 	$	813,539.73	 	 	$	67,794.98	 
	8/1/2023	 	7/3112024	 	$	829,810.53	 	 	$	69,150.88	 
	8/112024	 	7/3112025	 	$	846,406.74	 	 	$	70,533.89	 
	8/1/2025	 	7/3112026	 	$	863,334.87	 	 	$	71,944.57	 
	8/1/2026	 	7/3112027	 	$	880,601.57	 	 	$	73,383.46	 
	8/1/2027	 	7/3112028	 	$	898,213.60	 	 	$	74,851.13	 
	8/112028	 	7/3112029	 	$	916,177.87	 	 	$	76,348.16	 
	811/2029	 	7/3112030	 	$	934,501.43	 	 	$	77,875.12	 

 

    	 	D-1	 

     

    

 

Exhibit E

 

Fixed Annual Rent (without electric)
from and after the Additional Extended Term Rent Reset Date (as opposed to the giving of the Additional Extended Term Notice) if
Tenant exercises the Additional Extended Term Option and Landlord has not first exercised the Floor Surrender Option

 

The rent schedule set forth on this Exhibit E shall become effective
on the Additional Extended Term Rent Reset Date falling within the applicable Rent Period specified below that is then in effect

 

	Rent
    Period	 	Fixed
    Annual Rent	 
	Start Date	 	End Date	 	Annually	 	 	Monthly	 
	Six (6) months following the Effective Date	 	7/3112017	 	$	8,052,800.00	 	 	$	671,066.67	 
	8/1/2017	 	7/31/2018	 	$	8,213,856.00	 	 	$	684,488.00	 
	8/1/2018	 	7/31/2019	 	$	8,378,133.12	 	 	$	698,177.76	 
	8/112019	 	7/3112020	 	$	8,545,695.78	 	 	$	712,141.32	 
	8/112020	 	7/3112021	 	$	8,716,609.70	 	 	$	726,384.14	 
	8/1/2021	 	7/3112022	 	$	8,890,941.89	 	 	$	740,911.82	 
	8/112022	 	7/3112023	 	$	9,068,760.73	 	 	$	755,730.06	 
	8/112023	 	7/3112024	 	$	9,250,135.94	 	 	$	770,844.66	 
	8/1/2024	 	7/3112025	 	$	9,435,138.66	 	 	$	786,261.56	 
	8/1/2025	 	7/3112026	 	$	9,623,841.44	 	 	$	801,986.79	 
	8/1/2026	 	7/3112027	 	$	9,816,318.27	 	 	$	818,026.52	 
	8/1/2027	 	7/3112028	 	$	10,012,644.63	 	 	$	834,387.05	 
	8/1/2028	 	7/3112029	 	$	10,212,897.52	 	 	$	851,074.79	 
	8/1/2029	 	7/31/2030	 	$	10,417,155.47	 	 	$	868,096.29	 

 

    	 	E-1	 

     

    

 

Exhibit F

 

Form of Guaranty

 

GUARANTY OF LEASE

 

THIS
GUARANTY made as of the _______ day of_____,
_____by LVMH MOET HENNESSY LOUIS VUITTON S.E., a Societe Europeenne, having an address at 22 Avenue Montaigne, 75008 Paris,
France (“Guarantor”) in favor of 240 WEST 40th DELAWARE LLC, a Delaware limited liability company, having
an address at c/o Olmstead Properties, Inc., 575 Eighth Avenue, Suite 2400, New York, New York 10018
(“Landlord”).

 

W I T N E S S E T H :

 

Landlord
is the owner of the land and the improvements located thereon (the “Building”) known as 240 West 40th Street,
New York, New York.

 

Guarantor,
through the ownership of 100% of the stock of one or more intervening corporations, is the ultimate parent of The Donna Karan Company
LLC (“Tenant”). Guarantor will receive direct or indirect benefit from the Landlord entering into the Lease
(as hereinafter defined) with Tenant.

 

WHEREAS,
Landlord’s predecessor has entered into an Agreement of Lease, dated as of August 1, 2016, with THE DONNA KARAN COMPANY
LLC., a New York limited liability company having an address at 240 West 40th Street, New York, New York
(“Tenant”), as amended by that certain Lease Modification Agreement, dated as of May 28, 2008 and that
certain Second Amendment to Lease, dated as of November [ ], 2015 (the “Second Amendment”, and
collectively and as the same may be further amended from time to time, the “Lease”), for certain premises
(as the same may have been or may be further increased or decreased pursuant to the Lease from time to time, the
“Premises”) in the building known as 240 West 40th Street, New York, New York (the
“Building”);

 

WHEREAS,
contemporaneous herewith, Tenant is exercising an option set forth in the Lease to extend the term thereof;

 

WHEREAS,
Guarantor acknowledges that a condition of the effectiveness of such extension is the execution of this Guaranty by Guarantor and
the delivery of this Guaranty to Landlord contemporaneous with Tenant’s exercise of such option;

 

NOW, THEREFORE,
in consideration of the premises, and for other good and valuable consideration received, Guarantor does hereby covenant, agree,
represent and warrant to Landlord as follows:

 

ARTICLE I

REPRESENTATIONS AND WARRANTIES

OF THE GUARANTOR

 

Guarantor
does hereby represent and warrant that (a) the Guarantor has the power to enter into and perform this Guaranty, (b) neither this
Guaranty, the execution, delivery and performance hereof, the performance of the agreements herein contained nor the consummation
of the transactions herein contemplated will violate any statute, ordinance, regulation, court order or decree or order or decree
of

 

    	 	F-1	 

     

    

 

any other governmental authority
or agency or any other agreement to which the Guarantor is subject, and (c) this Guaranty constitutes a valid and binding obligation
of the Guarantor enforceable against the Guarantor in accordance with its terms.

 

ARTICLE II

 

AGREEMENT TO GUARANTEE

 

Section 2.1          Obligations; Guarantee; Limitations.

 

(a)          Subject
to Section 2.l(c), Guarantor hereby irrevocably, absolutely, unconditionally and, if there shall be more than one Guarantor,
jointly and severally, (i) guarantees to Landlord the full and prompt payment, now or hereafter existing, of Tenant’s obligations
for any and all Rent (as such term is defined in the Lease) payable under the Lease and in addition (ii) covenants and agrees to
pay to Landlord, as liquidated damages and not as a penalty for Tenant’s default under the Lease beyond the expiration of
any applicable notice and cure period, and in addition to Guarantor’s obligations under clause 2.1(a)(i) hereof, an
amount equal to the then-unamortized (amortized on a straight-line basis over the Additional Extended Term (as such term is defined
in the Second Amendment) and calculated as of the date of the Tenant default under the Lease giving rise to Landlord’s enforcement
of its rights under this Guaranty) Landlord’s Leasing Costs, as hereinafter defined (collectively, the “Obligations”).
In the event of a default under the Lease by Tenant after the expiration of notice and any applicable cure period, Guarantor hereby
covenants and agrees with Landlord to make the due and full punctual payment of all Obligations payable by Tenant under the Lease.
For the avoidance of doubt, the “Obligations” shall be limited to (x) the payment of rent and additional rent
obligations of Tenant under the Lease, and (y) the liquidated damages referred to in clause 2.1 (a)(ii) hereof. As used herein,
the “Landlord’s Leasing Costs” shall mean the sum of (i) the amount of any abated Fixed Annual Rent under
the Second Amendment actually credited to Tenant; (ii) the amount of the Tenant’s Work Allowance and/or the Additional Extended
Term Work Allowance (as such terms are defined in the Second Amendment), as applicable, that was paid to Tenant pursuant to the
Second Amendment; and (iii) any brokerage commissions actually paid by Landlord in connection with the making of the Second Amendment.

 

(b)          Guarantor
acknowledges that its liability hereunder is primary and that Landlord may, at Landlord’s option, join Guarantor in any action
or proceeding commenced by Landlord against Tenant in connection with or based upon the Lease or any term, covenant or condition
thereof relating to Tenant’s payment obligations under the Lease, and recovery may be had against Guarantor in such action
or proceeding or in any independent action or proceeding against Guarantor without Landlord first asserting, prosecuting, or exhausting
any remedy or claim against Tenant. Guarantor acknowledges that this Guaranty is an absolute and unconditional guaranty of payment
and not merely of collection.

 

(c)          Notwithstanding
anything to the contrary in this Guaranty, Guarantor’s obligations under this Guaranty shall not exceed the sum of (i) four
(4) years' Fixed Annual Rent at the rental rate in effect on the date of the Tenant default under the Lease giving rise to Landlord's
enforcement of its rights against Guarantor; and (ii) Landlord’s out of pocket costs and expenses incurred in enforcing its
rights under this Guaranty (including, without limitation, Landlord’s reasonable attorneys’ fees and expenses).

 

Section 2.2          Obligations Unconditional.

 

To the fullest extent permitted
by law, the Obligations of the Guarantor hereunder shall not be affected, modified, released or impaired by any state of facts
or the happening from time to time of any

 

    	 	F-2	 

     

    

 

event, including, without limitation, any of the
following whether or not with notice to, or the consent of, the Guarantor:

 

(a)          The
invalidity or unenforceability of the Lease by virtue of the lack of power or authority of Tenant or the person executing such
document on behalf of Tenant, to enter into, execute and deliver such documents;

 

(b)          The
compromise, settlement, release, extension, indulgence, change, modification or termination of any or all of the obligations,
covenants and agreements of Tenant under the Lease, or the expiration of the term of the Lease;

 

(c)          The
failure to give notice to the Guarantor of the occurrence of any default under the terms and provisions of the Lease; provided,
however, that the Guarantor shall not be obligated to perform under this Guaranty until the notice required pursuant to Section
2.5 under this Guaranty shall have been given to the Guarantor;

 

(d)          The
actual or purported assignment of any of the obligations, covenants and agreements contained in this Guaranty, the Lease or the
actual or purported assignment of Tenant’s leasehold estate under the Lease, or the subletting of the Premises;

 

(e)          The
forbearance by Landlord in collecting any of the rent or demanding performance or observance by Tenant of any of the obligations,
conditions, covenants or agreements or any or all of them contained in the Lease;

 

(f)
       The extension of time for the payment of any amounts required to be paid by Tenant
under the Lease or the performance of any other obligation by Tenant under the Lease;

 

(g)          The
modification or amendment (whether material or otherwise) of any term, duty, obligation, covenant or agreement set forth in the
Lease;

 

(h)          The
taking or the omission to take any action or to pursue any right or remedy under the Lease;

 

(i)          The
voluntary or involuntary commencement of any case or proceeding under the Federal Bankruptcy Code or any state or foreign bankruptcy,
insolvency or similar statute affecting Tenant, the liquidation, dissolution, merger, consolidation, sale or other disposition
of all or substantially all of the assets of Tenant, the marshalling of the assets and liabilities, receivership, insolvency, assignment
for the benefit of creditors, the reorganization, arrangement, composition with creditors, or readjustment of debts or other similar
events of proceedings, or the appointment of a receiver, conservator, custodian or sequestrator of all or part of the property
of Tenant, or any allegation or contest of the validity of this Guaranty or the Lease in any such proceeding; it being specifically
understood, consented and agreed to that this Guaranty shall remain and continue in full force and effect and shall be enforceable
against the Guarantor to the same extent and with the same force and effect as if such events and proceedings had not been instituted;
and it is the intent and purpose of this Guaranty that the Guarantor shall and does hereby waive all rights and benefits which
might accrue to the Guarantor by reason of any such proceeding or case;

 

(j)        Any
failure of Landlord to mitigate the damages resulting from any default by Tenant under the Lease;

 

(k)        Any
failure by Landlord to preserve any security under the Lease;

 

    	 	F-3	 

     

    

 

(l)        The
taking of additional security from Tenant;

 

(m)       The
rejection, disaffirmance or disclaimer of the Lease by any party in any action or proceeding;

 

(n)        The
release of any collateral held for the Obligations or release of any Guarantor or any other guarantor;

 

(o)       Any
defect or invalidity of the Lease;

 

(p)       The
transfer by Guarantor of any or all its ownership interest in Tenant;

 

(q)       Any repossession, re-entry or re-letting
of the Premises by Landlord;

 

(r)        The leasing by Tenant of any additional space in the Building; or

 

(s)        Any
subletting of all or any portion of the Premises or any assignment or other transfer of Tenant’s interest in the Lease.

 

Section
2.3           No Waiver of Set-Off; No Right to Jury Trial. No act
of commission or omission of any kind or at any time upon the part of Landlord in respect of any matter whatsoever shall in any
way impair the rights of Landlord to enforce any right, power or benefit under this Guaranty and no set-off, counterclaim, reduction
or diminution of any obligation or any defense of any kind or nature (other than performance by Tenant of its obligations under
the Lease) which the Guarantor has or may have against Landlord or any affiliate thereof, shall be available hereunder to the Guarantor.         The
Guarantor and Landlord, by its acceptance of this Guaranty, each hereby waives the right of trial by jury in the event of any litigation
between Landlord and the Guarantor in respect of any matter arising out of this Guaranty.

 

Section
2.4           Waiver of Notice. The Guarantor hereby expressly waives
notice from Landlord of its acceptance of, and reliance on, this Guaranty. The Guarantor hereby waives presentment of any instrument,
demand of payment, protest and notice of non-payment or protest thereof, except for notice required under this Guaranty.

 

Section
2.5           Notice of Default. Landlord shall give the Guarantor
a copy of each notice of default sent by Landlord to Tenant under the Lease, and the payment by Guarantor or any nominee of Guarantor
of rent and additional rent under the Lease shall be accepted by Landlord.

 

Section
2.6           Certification by Guarantor.         Guarantor
agrees that it will, from time to time, within thirty (30) days after Landlord’s request, execute and deliver a statement
certifying that this Guaranty is unmodified and in full force and effect.

 

Section
2.7           Continues After Lease Termination; No
Subrogation. This Guaranty shall remain in full force and effect
until the payment of all Obligations (whether or not the Lease shall have been terminated). Until the payment of all
Obligations payable under this Guaranty, Guarantor:

 

(a)          Shall
have no right of subrogation against Tenant by reason of any payments or acts of performance by the Guarantor in compliance with
the obligations of the Guarantor under this Guaranty;

 

    	 	F-4	 

     

    

 

(b)          Waives
any right to enforce any remedy which Guarantor now or hereafter shall have against Tenant by reason of any one or more payments
or acts of performance in compliance with the obligations of Guarantor under this Guaranty; and

 

(c)
       Subordinates any liability or indebtedness of Tenant now or hereafter held by
Guarantor to the Obligations of Tenant to the Landlord under the Lease.

 

ARTICLE III

 

NOTICES AND CONSENT TO JURISDICTION

 

Section
3.1           Notices. Any notice required to be given to
Guarantor shall be in writing and shall be given by hand delivery, receipt acknowledged, or by internationally recognized
courier, to Guarantor at the address first set forth above, or to such other address as Guarantor shall specify by delivery
of notice as aforesaid with copies to (i) LVMH MOET HENNESSY LOUIS VUITTON S.E., 22 Avenue Montaigne, 75008 Paris, France,
Attention: Bernard Kuhn, (ii) LVMH MOET HENNESSY LOUIS VUITTON INC., 19 East 57th Street, New York, New York
10022, Attention: General Counsel, (iii) Tenant at 240 West 40th Street, New York, New York 10018, Attention Chief
Financial Officer, and to Attention: Legal Department-General Counsel, and (iv) Barack Ferrazzano Kirschbaum & Nagelberg
LLP, 200 W. Madison, Suite 3900, Chicago, Illinois 60606, Attention: Peter J. Barack, Esq., and to Landlord, c/o Olmstead
Properties, Inc., 575 Eighth Avenue, Suite 2400, New York, New York 10018, Attention: Mr. Samuel Rosenblatt, or at such other
address as Landlord may specify to Guarantor at Guarantor’s then specified address. Notices shall be deemed given on
the date received or refused.

 

Section
3.2           Consent to Jurisdiction. The Guarantor
irrevocably and unconditionally (a) agrees that any suit, action or other legal proceeding arising out of this Guaranty may
be brought in a court of the State of New York situated in New York County or the United States District Court for the
Southern District of New York and that such courts shall have sole and exclusive jurisdiction over any suit, action or other
legal proceeding arising out of this Guaranty, (b) consents to the jurisdiction of each such court in any such suit, action
or proceeding, (c) waives any objection which it may have that venue should not lie in a court described in clause (a) above,
except that by consenting to the jurisdiction of a court of the State of New York, the Guarantor shall not be deemed to have
waived any right to remove any such suit, action or proceeding to the United States District Court for the Southern District
of New York and (d) appoints LVMH MOET HENNESSY LOUIS VUITTON INC. to act as agent for service of process in any action or
proceeding under this Guaranty provided that nothing contained in this Section 3.2 shall affect the right of
Landlord to serve legal process in any other manner permitted by law; provided, however, that if on the date Guarantor
delivers this Guaranty to Landlord, LVMH MOET HENNESSY LOUIS VUITTON INC. does not maintain an office open for the conduct of
business in the State of New York, then in addition to the foregoing, Guarantor shall appoint a nationally recognized
corporate service firm to act as Guarantor’s agent for service of process for the balance of the term of the Lease
(including any extension and renewal periods set forth therein), and such firm shall execute and deliver to Guarantor its
agreement to so act as agent simultaneously with Guarantor’s delivery to Landlord of this Guaranty. To the extent
permitted by applicable law, Guarantor agrees that a final judgment obtained in any court described above in any action or
proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.

 

    	 	F-5	 

     

    

 

ARTICLE IV

MISCELLANEOUS

 

Section
4.1           Remedies Not Exclusive. No remedy herein conferred
upon or reserved to Landlord is intended to be exclusive of any other available remedy given under this Guaranty or hereafter existing
at law or in equity. No delay or failure to exercise any right or power accruing upon any default, omission or failure or performance
hereunder shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be
exercised from time to time and as often as may be deemed expedient. If any provision contained in this Guaranty should be breached
by the Guarantor and thereafter duly waived by Landlord, such waiver shall be limited to the particular breach so waived and shall
not be deemed to waive any other breach hereunder. No waiver, amendment, release or modification of this Guaranty shall be established
by conduct, custom or course of dealing, but solely by an instrument in writing duly executed by Landlord and the Guarantor.

 

Section
4.2           Severability. The invalidity or unenforceability of
any one or more of the phrases, sentences, clauses or sections of this Guaranty shall not affect the validity or enforceability
of the remaining portion of this Guaranty or any part hereof.

 

Section 4.3           Applicable
Law. This Guaranty shall be governed by and construed m accordance with
the laws of the State of New York without regard to conflict of law principles.

 

Section
4.4           Successors and Assigns. This
Guaranty shall be binding upon, and be enforceable in accordance with its terms against, the Guarantor and its successors or assigns
and shall inure to the benefit of Landlord, its successors or assigns.

 

Section 4.5           Payments.

 

(A)         All
payments due hereunder shall be made in lawful money of the United States of America (“U.S.”) in immediately
available funds free and clear of, and without deduction or withholding for or on account of, any taxes, levies, fees, imposts,
duties, expenses, commissions, withholdings, assessments or other charges, or any penalties, fines, additions to tax or interest
thereon (collectively, “Taxes”) to the extent that Taxes result in the amount collected by Landlord hereunder
being less than the amount that Landlord otherwise would have collected if Tenant made such payment to Landlord. If any Taxes are
required by law to be deducted or withheld from any payment made by Guarantor hereunder and as a result thereof the amount that
Landlord receives hereunder is less than the amount that Landlord otherwise would have received if Tenant made such payment to
Landlord, then Guarantor shall increase the amount paid so that Landlord receives, after deduction or withholding on account of
Taxes, the full amount of the payment provided for in this Guaranty.

 

(B)         If
Landlord is obligated by any bankruptcy, insolvency or other legal proceedings to repay to Guarantor or to Tenant, or to any trustee,
receiver or other representative of any of them, any amounts previously paid by Guarantor pursuant to this Guaranty, then this
Guaranty shall be deemed reinstated to the extent of that repayment made by Landlord. Landlord shall not be required to litigate
or otherwise dispute its obligation to make such repayments if, in good faith and on the advice of counsel, Landlord believes that
such obligation exists.

 

(C)         This
Guaranty is made by Guarantor in connection with a transaction in which the specification of U.S. dollars and payment at the designated
place of payment is of the essence, and U.S. dollars shall be the currency of account in all events. The payment obligations of
Guarantor

 

    	 	F-6	 

     

    

 

under this Guaranty shall not
be discharged by an amount paid in another currency or in another place, whether pursuant to a judgment or otherwise, to the extent
that the amount so paid on conversion to U.S. dollars and transferred to the designated place of payment under normal banking procedures
does not yield the amount of U.S. dollars due hereunder. If, for the purposes of obtaining judgment in any court, it is necessary
to convert a sum due hereunder in U.S. dollars into another currency, the parties hereto agree, to the fullest extent permitted
by law, the rate of exchange used shall be that at which, in accordance with normal banking procedures, Landlord could purchase
U.S. dollars with such other currency at a bank located in The City of New York on the date on which final judgment is given. The
obligation of Guarantor in respect of any sum due from it to Landlord hereunder shall, notwithstanding any judgment in currency
other than U.S. dollars, be discharged only to the extent that, on the business day following receipt by Landlord of any sum judged
to be so due with such other currency, Landlord may, in accordance with normal banking procedures, purchase U.S. dollars with such
other currency. If the U.S. dollars so purchased are less than the sum originally due to Landlord in U.S. dollars, Guarantor agrees,
as a separate obligation and notwithstanding any such judgment, to pay to Landlord any such loss, and if the U.S. dollars so purchased
exceed the sum originally due to Landlord, in U.S. dollars, Landlord agrees to remit to Guarantor such excess.

 

    	 	F-7	 

     

    

 

 

IN WITNESS WHEREOF, the Guarantor has executed
this Guaranty as of the date first above written.

 

	 	LVMH MOET HENNESSY LOUIS VUITTON S.E.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

By its signature
below, LVMH MOET HENNESSY LOUIS VUITTON INC. has indicated its unconditional agreement to act as Agent for the Service of Process
on Guarantor. The undersigned agrees that this appointment is irrevocable through the Additional Extended Term Expiration Date
(as such term is defined in the Second Amendment).

 

	 	LVMH MOET HENNESSY LOUIS VUITTON INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

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

 

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

 

	 	 
	 	Notary Public
	 	 
	 	[Acknowledgement for Agent for Service of Process]

 

    	 	F-8	 

     

    

 

 

 

 

DONNA KARAN

 

COMPANY

 

400 B COMMERCE
BLVD

 

CARLSTADT, NJ
07072

 

Check No. 2410322

Check - 10/28/15

 

47484 240 WEST
40TH DELAWARE LLC Stub 1 of 1

INVOICE NUMBER
DESCRIPTION GROSS AMOUNT DEDUCTIONS AMOUNT PAID

102715 102715
547,500.00 547,500.00 547,500.00 547,500.00

DETACH ALONG
PERFORATION

THE FACE OF THIS
CHECK IS PRINTED BLUE - THE BACK CONTAINS A SIMULATED WATERMARK

CHECK NO. 02410322

Citibank Delaware·

A Subsidiary of Citicorp

One Penn’ s Way

New Castle, DE
19720

DONNAKARAN

COMPANY

400 B COMMERCE
BLVD CARLSTADT, NJ 07072

47484

 

Date Amount

10/28/15 $***547,500.00

THE DONNA KARAN
COMPANY LLC

PAY FIVE HUNPRED
FORTY SEVEN THOUSAND FIVE HUNDRED AND 00/100 **************************

TO THE ORDER
OF

240 WEST 40TH
DELAWARE LLC

FBO AAREAL CAPITAL
CORP - AGENT PO BOX 2152

HICKSVILLE NY
11802

 

AUTHORIZED SIGNATURE

AUTHORIZED SIGNATURE

 

TWO SIGNATURE
REQUIRED OVER $25.000 VOTE AFTER 90 DAYS

“02410322”
-:031100209-: 39109214”Exhibit 10.19

 

LEASE AGREEMENT

 

Between

 

400 COMMERCE BOULEVARD, LLC, Landlord

 

and

 

THE DONNA KARAN COMPANY LLC, Tenant

 

Prepared by:

 

Richard G. Berger, Esq.

c/o Russo Development, LLC

570 Commerce Boulevard

Carlstadt, New Jersey 07072

(201) 487-5657

 

    	 	 	 

     

    

 

TABLE OF CONTENTS

 

	Article 1. Lease Term	4
	 	 
	Article 2. Rent	5
	 	 
	Article 3. Supplemental Rent	7
	 	 
	Article 4. Repairs, Maintenance Security and Surrender Obligations of Tenant	11
	 	 
	Article 5. Repairs and Maintenance Obligation of Landlord	13
	 	 
	Article 6. Utilities and Personal Property Taxes	14
	 	 
	Article 7. Glass, Damage by Tenant	15
	 	 
	Article 8. Use of Demised  Premises	15
	 	 
	Article 9. Alterations and improvements	17
	 	 
	Article 10. Laws and Ordinances	19
	 	 
	Article 11. Insurance	19
	 	 
	Article 12. Landlord’s Liability	21
	 	 
	Article 13. Default of Landlord	22
	 	 
	Article 14. Default of Tenant	22
	 	 
	Article 15. Landlord’s Access to Demised  Premises	26
	 	 
	Article 16. Hold Harmless	26
	 	 
	Article 17. Assignment	27
	 	 
	Article 18. Condemnation	29
	 	 
	Article 19. Fire or Casualty Loss	29
	 	 
	Article 20. Estoppel Certificate	30
	 	 
	Article 21. Signs	30
	 	 
	Article 22. Brokerage Commission	31
	 	 
	Article 23. Unavoidable Delays	31
	 	 
	Article 24. Subordination	31

 

    	 	 	 

     

    

 

	Article 25. Limited Guaranty	32
	 	 
	Article 26. Landlord’s Power Generation Systems	32
	 	 
	Article 27. Waiver as to Insured Losses	36
	 	 
	Article 28. Environmental Covenants	36
	 	 
	Article 29. Auction Sales	38
	 	 
	Article 30. Holding Over	38
	 	 
	Article 31. Quiet Possession	38
	 	 
	Article 32. Sale of the Landlord’s  Premises	38
	 	 
	Article 33. Notices	39
	 	 
	Article 34. Parties Bound	39
	 	 
	Article 35. Abandoned Personal Property	40
	 	 
	Article 36. Financial Information	40
	 	 
	Article 37. Letter of Acceptance	40
	 	 
	Article 38. Miscellaneous Provisions	40
	 	 
	Article 39. Rules and Regulations	42
	 	 
	Article 40. Allowance improvements	42
	 	 
	Article 41. Option to Renew	44
	 	 
	Article 42. Incorporation of Recitals	44

 

    	 	 	 

     

    

 

LEASE AND SECURITY AGREEMENT

 

THIS AGREEMENT, made
this __ day of November, 2011, By and Between:

 

400 COMMERCE BOULEVARD, LLC,
C/O Russo Development, LLC, 570 Commerce Boulevard, Carlstadt, New Jersey 07072 (hereinafter referred to as the “Landlord”);

 

and

 

THE DONNA KARAN COMPANY LLC,
240 West 40th Street, New York, New York 10018, (hereinafter referred to as the “Tenant”).

 

W I T N E S S E T H:

 

That Landlord leases
to Tenant, and Tenant takes from Landlord, the premises which consist of approximately 197,445 square feet, including approximately
23,615 square feet of office area, in Landlord’s building (the “Building”) comprising approximately 267,051 square
feet located at 400 Commerce Boulevard, Carlstadt, New Jersey which area within the Building is more particularly depicted on Schedule
“A” annexed hereto (hereinafter the “Demised Premises”), and the exclusive right to 125 parking spaces
designated on Schedule “A.” The lot or parcel commonly known as 400 Commerce Boulevard, Carlstadt, New Jersey, the
Building and all structures, fixtures, equipment and appurtenances now or hereafter located at the property in which the Demised
Premises are located (other than any trade fixtures and equipment owned by Tenant) are hereinafter referred to as the “Landlord’s
Premises.”

 

TO HAVE AND TO HOLD the
Demised Premises for the term set forth at Article 1 of this Lease, subject to all of the terms, conditions, warranties, covenants
and agreements set forth in this Lease Agreement.

 

IN CONSIDERATION OF THE
FOREGOING, and of the mutual promises, agreements, conditions, covenants and terms herein set forth, the Landlord and the Tenant
mutually covenant and agree as follows:

 

1.           Lease
Term: After the existing Tenant has vacated Landlord will allow Tenant to access the Demised Premises to set up equipment and
ready the Demised Premises for occupancy; provided and on the conditions that: (a) Tenant shall not delay or interfere with the
completion of the Allowance Improvements by the Landlord in any material respect; and (b) prior to entering the Demised Premises
the Tenant shall provide insurance coverage as required by this Lease. Landlord shall offer the existing tenant an early termination
of its lease on December 31, 2011, instead of the normal expiration date of January 31, 2012. The term of this Lease (hereinafter
the “Term”) shall commence on the earlier of: (a) Tenant taking occupancy of the Demised Premises for the conduct of
business operations (provided that Tenant’s access pursuant to the first sentence hereof shall not constitute taking occupancy
of the Demised Premises for the conduct of business operations); or (b) the later of: (i) May 1, 2012 (provided that Tenant is
given access to the Demised Premised by January 1, 2012, or June 1, 2012 if Tenant is given access to the Demised Premises on February
1, 2012), or (ii) the date when Landlord achieves Substantial Completion of the Allowance Improvements (hereinafter the “Commencement
Date”); provided that, if the Commencement Date has not occurred

 

    	 	 	 

     

    

 

by May
1, 2012 (if Landlord is able to give Tenant access to the Demised Premised by January 1, 2012), or June 1, 2012 (if Landlord
is able to give Tenant access to the Demised Premises on February 1, 2012), then Tenant shall
be entitled to a credit equal to the difference between the fixed or base rent Tenant required to pay to its current landlords
under two of Tenant’s existing leases in Carlstadt in the combined total amount of Four Thousand Two Hundred Fifty Dollars
($4,250.00) per day, less one (1) day of Fixed Rent under this Lease for each day from June 1, 2012 until the Commencement Date
which shall be applied against the first installments of Fixed Rent payable after the Rent Commencement Date. The Term shall
end on the date twelve (12) years after the Commencement Date, unless sooner terminated or extended (if applicable) as elsewhere
provided in this Lease Agreement, a date which is estimated to be April 30, 2022 (hereinafter the “Termination Date”).

 

		2.	Rent:

2.1          Fixed
Rent: The Tenant hereby agrees to pay to the Landlord an annual base or fixed rental (hereinafter, “Fixed Rent”)
throughout the full Term in the amounts set forth on Schedule “B” annexed hereto and incorporated herein by reference
in cash or check, lawful money of the United States of America, in monthly installments, payable on the first day of each and every
month, in advance, throughout the initial Term of twelve (12) years. Rent shall commence on the date (the “Rent Commencement
Date”) which is thirty calendar days after the Commencement Date. If the Rent Commencement Date is before or after June 1,
2012, then Schedule B shall be revised and initialed by the parties to reflect the actual Rent Commencement Date. Fixed Rent for
the first full month of the Term after the Rent Commencement Date shall be paid in advance on the date of execution of this Lease.

 

Fixed Rent, Supplemental
and Additional Rent (which are sometimes collectively referred to herein as “Rent”) shall be paid at the office of
the Landlord or at such other place as may hereafter be designated by the Landlord. Fixed Rent shall be paid to the Landlord without
notice or demand and without deduction, set-off or other charge. If the Commencement Date or the Termination Date occurs on a day
other than respectively, the first day or the last day of a calendar month, the Fixed Rent for the partial calendar month at the
commencement or termination of the Term shall be prorated based upon the number of days in that month.

 

2.2          All
monetary obligations of any and every nature, including, without limitation security deposit obligations, owed by the Tenant to
the Landlord or to any affiliate of the Landlord who performs work or provides services for the Tenant at the Demised Premises,
including without limitation, taxes, charges, costs, letters of credit or security deposits and expenses which the Tenant is required
to pay to third parties or to reimburse to the Landlord hereunder, together with all interest and penalties that may accrue thereon
in the event of the Tenant’s failure to timely pay such amounts, and all damages, costs and expenses which the Landlord may
incur by reason of any default or failure on the Tenant’s part to comply with the terms of this Lease, shall be Rent (referred
to herein as “Additional Rent”) and, in the event of nonpayment or nonperformance of Additional Rent obligations by
the Tenant, the Landlord shall have all rights and remedies with respect thereto as the Landlord has for the nonpayment of Rent.

 

2.3          Any
sums due the Tenant from the Landlord under any of the provisions of this Lease, or arising from or out of the Landlord’s
failure to comply with, or perform any of the terms of this Lease, shall in all cases be enforced by Tenant by means other than
deduction from Rent, and the attempt by Tenant to deduct all or any part of the Rent due, without prior court adjudication, shall
constitute a breach of this Lease. No payment by Tenant or receipt by Landlord of a lesser amount than any payment of Fixed, Supplemental
or Additional Rent herein stipulated shall be deemed to be other than on account of the earliest Rent or Rents then due and payable.

 

    	 	5	 

     

    

 

2.4          Tenant
hereby acknowledges that late payment by Tenant to Landlord of Fixed Rent, Supplemental Rent, and/or Additional Rent will cause
Landlord to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such
costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed upon Landlord by
terms of any mortgage or trust deed covering the Landlord’s Premises. Accordingly, if any installment of Rent t or sum due
from Tenant, under this or any other agreement between Landlord and Tenant, shall not be received by Landlord or Landlord’s
designee from Tenant when that said amount is due, then Tenant shall pay to Landlord a late charge equal to five (5%) percent of
the amount past due, plus any reasonable attorneys’ fees and expenses of every nature incurred by Landlord by reason of Tenant’s
failure to pay Rent and/or other charge when due hereunder. The parties hereby agree that such late charge represents a fair and
reasonable estimate of the costs that Landlord will incur by reason of the late payment by Tenant. Notwithstanding the foregoing,
Landlord shall waive the assessment of any such late charge against Tenant one time in each consecutive twelve (12) month period
(commencing on the Commencement Date) during the Term as long as with respect to any such late payment Tenant cures the failure
to pay thereof within five (5) days after receipt of notice from Landlord with respect to same. Acceptance of such late charge
by the Landlord shall in no event constitute a waiver of Tenant’s default with respect to such overdue amount, nor prevent
Landlord from exercising any of the other rights and remedies granted hereunder. Any late payment of Fixed Rent, Supplemental Rent
or Additional Rent not accompanied by such late charge may, at Landlord’s option be returned to Tenant and treated as if
not made at all, or else, by written notice, the unpaid late charge may be added to the next month’s Fixed Rent. If checks
issued by Tenant shall be dishonored it shall be deemed late payment and a late charge shall apply, and if checks are dishonored
on two (2) or more occasions within any six (6) consecutive-month period, Landlord may require, by giving written notice to Tenant
that all future Rent payments are to be made by cash, cashier’s check, electronic funds transfer or money order, and that
the tender of Tenant’s personal or corporate check will no longer be accepted and shall not constitute payment of Rent. Any
acceptance of personal or corporate check thereafter by Landlord shall not be construed as a subsequent waiver of said right, except
as to the check so accepted.

 

2.5.         If
Tenant tenders any payment to Landlord by check, same shall be the check of Tenant. Landlord shall not be required to accept the
check of any other entity other than the Tenant. Any check received by Landlord shall be deemed received subject to collection.
If any check is mailed by Tenant, Tenant shall post such check in sufficient time prior to the date when payment is due so that
such check will be received by Landlord on or before the date when payment is due. Tenant assumes all risk of lateness or failure
of delivery of the mails, and no lateness or failure of the mails will excuse Tenant from its obligation to have made the payment
in question when required under this Lease Agreement.

 

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

 

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

 

    	 	6	 

     

    

 

		3.	Supplemental Rent:

3.1          The
parties recognize that this is a “triple-net” lease and Tenant shall be fully responsible to pay as Supplemental Rent
its Proportionate Share (as herein defined) of all reasonable costs, charges, maintenance, and operational expenses associated
with the Landlord’s Premises, except those specifically allocated to Landlord under Article 5 of this Lease. Therefore, and
without limitation, commencing at the Commencement Date, Tenant shall pay to Landlord Seventy-Three and 94/100 percent (73.94 %)
(“Tenant’s Proportionate Share”) of the total costs of the following items (which payments from Tenant are hereinafter
referred to as “Supplemental Rent”):

 

A.           All
real estate taxes, impositions and special assessments of every nature imposed by any governmental authority on the Landlord’s
Premises during the Term, including land, building, and improvements thereon, but excluding any interest fines or penalties for
late payment or non payment. Said real estate taxes shall include all real estate taxes and assessments that are levied upon and/or
assessed against the Landlord’s Premises, including any taxes which may be levied on Rents, except that as to assessments,
Landlord shall elect to pay same over the longest period permitted by law and only the installment’s payable during the Term,
including interest, shall be added into Tenant’s calculation. Landlord may file an appeal of the real estate taxes applicable
to Landlord’s Premises when it determines in Landlord’s reasonable discretion that the fair market value of the Landlord’s
Premises is such that a tax appeal will likely reduce the equalized assessed value of the Landlord’s Premises by at least
fifteen (15%) percent and it is otherwise appropriate to appeal. In addition, Landlord shall not unreasonably withhold consent
to a request by Tenant that Landlord institute an appeal of real estate taxes applicable to the Landlord’s Premises if Tenant
timely makes a request and provides Landlord with an appraisal from a licensed, MAI appraiser in New Jersey or other evidence reasonably
satisfactory to Landlord that demonstrates that a tax appeal will likely reduce the equalized assessed value of the Landlord’s
Premises by at least fifteen (15%) percent. If a real estate tax appeal is filed respecting the Landlord’s Premises, Tenant
shall reimburse Landlord for Tenant’s Proportionate Share of Landlord’s reasonable costs incurred in appealing taxes
and/or assessments on Landlord’s Premises, including reasonable legal fees, expert witness fees and other proper reasonable
costs, but Tenant will not be liable to pay a reimbursement in excess of any actual tax savings received by Tenant from such an
appeal. If any such appeal is successful, Tenant’s Proportionate Share of any recovery applicable to the Term net of such
reasonable expenses shall be credited to Tenant’s future obligation for Supplemental Rent hereunder (or, if such credits
are less than the Tenant’s Proportionate Share of the recovery applicable to the Term, then such excess shall be paid to
Tenant within thirty (30) days after receipt of the refund by the Landlord).

 

B.           All
premiums for all policies of insurance maintained from time to time by the Landlord with respect to the Landlord’s Premises,
including:

 

(i)          Insurance
against loss or damage to the Landlord’s Premises by fire, casualty, windstorm, tornado and hail and against loss and damage
by such other, further and additional risks as may be now or hereafter embraced by an “all-risk,” or “property
damage - special form,” or equivalent form of policy of insurance with extended coverage, including, without limitation terrorism
coverage. The amount of such insurance shall be not less than one hundred percent (100%) of the full replacement cost (insurable
value) of the insurable improvements at the Landlord’s Premises. The determination of the replacement cost amount and the
deductible amount shall be reasonably determined by the Landlord or as stipulated by the Landlord’s mortgage lender. Each
policy may at Landlord’s option contain inflation guard coverage insuring that the policy limit will be increased over time
to reflect the effect of inflation. This insurance shall (x) name only Landlord and Landlord’s mortgagees, if any, as their
respective interests may appear; (y) provide that no act of Tenant shall impede the right of Landlord or Landlord’s mortgagees,
if any, to receive and collect the insurance proceeds; and (z) provide that the right of Landlord and Landlord’s mortgagees,
if any, to the insurance

 

    	 	7	 

     

    

 

proceeds shall not be
diminished because of any insurance carried by Tenant for Tenant’s own account. Tenant acknowledges that it has no right
to receive any proceeds from such insurance policy.

 

(ii)         Comprehensive
General Liability Insurance against claims for personal injury, bodily injury, death and property damage occurring on, in or about
the Landlord’s Premises in amounts not less than $5,000,000.00 per occurrence and $5,000,000.00 in the aggregate. Landlord
hereby retains the right to periodically review the amount of said liability insurance being maintained and to increase the amount
of liability insurance in an amount consistent with prevailing practices for similar tenancies in the geographic area of Landlord’s
Premises when Landlord deems an increase to be reasonably prudent under then existing circumstances.

 

(iii)        If
any portion of the building or improvements on Landlord’s Premises or are situated in an area now or subsequently designated
by the Federal Emergency Management Agency (“FEMA”) as a special flood hazard area (such as Zone A, or Zone
V), flood insurance in an amount equal to the lesser of: (i) the minimum amount required, under the terms of coverage, to compensate
for any damage or loss on a replacement basis; or (ii) the maximum insurance available under the appropriate National Flood Insurance
Administration program. The maximum deductible shall be $1,000.00 per building or, at Landlord’s option, a higher minimum
amount consistent with requirements of FEMA or other applicable law.

 

(iv)        During
the period of any construction, renovation or alteration of the exterior portions of the common areas of the Landlord’s Premises
a completed value, “All Risk” Builder’s Risk form, or “Course of Construction” insurance policy in
non-reporting form with replacement cost and no co-insurance, in an amount reasonably determined by the Landlord.

 

(v)         Business
income (loss of rents) insurance in amounts sufficient to compensate Landlord for all Rent and reimbursements generated from Landlord’s
Premises during a period of eighteen (18) months.

 

(vi)        Such
other insurance respecting this Lease and/or the Landlord’s Premises or any replacements, substitutions, or additions thereto
as may from time to time be reasonably required by Landlord against other insurable hazards, casualties or matters which at the
time are commonly insured against in the case of property similarly situated.

 

Landlord may in its
sole discretion, but shall not be obligated to, adopt a plan of self-insurance, providing and on the condition that such insurance
must in all cases be fully funded by cash escrows or letters of credit established by the Landlord for the full amount of any self
insured retention and shall utilize excess or umbrella policies of insurance for coverage amounts over the self insured retention,
In such case, Tenant shall pay its Proportionate Share of all premium costs for any excess insurance or umbrella policies, and
of all associated expenses, including the costs and bank fees for letters of credit, but Tenant shall not be required to contribute
to the principal cash escrow in the amount of the self insured retention, which shall be the responsibility of Landlord. In the
event of, and to the extent that Landlord self-insures as aforesaid, the costs and premiums payable by Tenant shall be the premiums
quoted to Landlord for substantially identical coverage to that being self-insured except that Tenant shall have the right at any
time to obtain and submit to Landlord a quotation for insurance in compliance with this Lease and identical in coverage amounts
to that which is then being self-insured and if the quotation obtained by Tenant is less and Landlord does not accept that insurance
as a replacement, then said lesser figure shall be the basis for Tenant’s Proportionate Share contribution.

 

C.           All
costs incurred by Landlord in good faith and in its commercially reasonable discretion to operate, maintain, repair and replace
improvements, common areas, parking lots, sidewalks, canopies, driveways, hallways and utility rooms, lines and facilities and
other areas or things benefiting, in common, the tenants of the Landlord’s Premises including, without limitation, the Landlord’s
Power Generation System and all related improvements which increase the energy efficiency of the Landlord’s Premises (solar,
wind, geothermal and the like) and which reduce the

 

    	 	8	 

     

    

 

carbon footprint of the Landlord’s
Premises (energy efficient systems, water conservation systems and the like). Said costs shall include, without limitation, all
of Landlord’s repair and operational obligations except as may be expressly payable solely by Landlord under this Lease.
Said costs include the private assessment for the improvement made by Landlord to Commerce Boulevard and Central Boulevard in 2003
assessed against all properties owned by Landlord which is in the amount of $730.00 per annum for the Landlord’s Premises
and continues through December 1, 2013, at which time the said private assessment shall be satisfied and shall terminate. There
shall also be included any parking charges, utilities surcharges, sewer and water charges, COAH/affordable housing development
fees or assessments applicable to the Landlord’s Premises and all other fees, costs and charges levied, assessed or imposed
by, or at the direction of, or resulting from statutes or regulations, or interpretations thereof, promulgated by any governmental
authority in connection with use, operation, development, repair, alteration or occupancy of the Landlord’s Premises or the
parking facilities serving the Landlord’s Premises.

 

Notwithstanding the
foregoing, as to any replacement or improvement which would constitute a capital item under generally accepted accounting principles
in the United States, Tenant shall be responsible to pay Tenant’s Proportionate Share of that portion of the cost based upon
the proportion between the useful life of the improvements (UL) and the remaining term of the lease (RT), utilizing the following
formula: (total cost x RT)/UL. For the replacement items specifically listed in the table below, the reimbursable share of the
total cost for the replacement to which Tenant shall be obligated to contribute its Proportionate Share shall be based upon a proration
of the useful life of each replacement (“UL”) and the remaining portion of the Term of this Lease (“RT”).

 

	No.	 	Replacement
    item	 	Useful life, in
    years (“UL”)
	1.	 	Roof	 	15
	2.	 	HVAC units	 	10
	3.	 	Pavement for parking and loading areas	 	10
	4.	 	Waterproofing or painting of exterior walls	 	5
	5.	 	Loading doors	 	7
	6.	 	Dock levelors	 	7
	7.	 	Unit heaters	 	10
	8.	 	Curbs and sidewalks	 	10
	9.	 	Egress stairs	 	10

 

For all other replacement items not specifically
mentioned in the above table, the useful life shall be deemed to be ten (10) years. Notwithstanding the foregoing, Tenant shall
pay to Landlord the Tenant’s Proportionate Share of the entire cost of any replacement item which amounts to less than One
Thousand and 00/100 ($1,000.00) Dollars.

 

3.2          At
or about the Commencement Date Landlord shall submit to Tenant a statement of the anticipated monthly Supplemental Rent for the
period between such Commencement Date and the following January determined by Landlord in good faith and in its commercially reasonable
discretion and Tenant shall pay this Supplemental Rent on the first day of each consecutive month concurrently with the payment
of the Fixed Rent commencing on the Rent Commencement Date. Tenant shall continue to make said monthly payments until notified
by Landlord of a change thereof. By March 1 of each year Landlord shall give Tenant a statement showing the total Supplemental
Rent for the Landlord’s Premises for the prior calendar year, prorated from the Rent Commencement Date. In the event the
total of the monthly payments which Tenant has made for the

 

    	 	9	 

     

    

 

prior calendar year be less than the Tenant’s
actual share of such Supplemental Rent, then Tenant shall pay the difference in a lump sum within thirty (30) days after receipt
of such statement from Landlord and shall concurrently pay the difference between the total previous monthly payments made in the
then calendar year and the total of monthly payments calculated as Supplemental Rent based on the prior year’s experience.
Any overpayment by Tenant shall be credited towards the Rent next coming due. The actual Supplemental Rent for the prior year with
anticipated cost increases or decreases in the coming year as reasonably determined by Landlord shall be used for purposes of calculating
the anticipated monthly Supplemental Rent for the then current year with actual determination of such Supplemental Rent after each
calendar year as above provided. In any year in which resurfacing of any parking area is contemplated Landlord shall be permitted
to include the full anticipated cost of same as part of the estimated increased costs for calculating the anticipated monthly Supplemental
Rent for the then current year. Even though the term has expired and Tenant has vacated the Demised Premises, when the final determination
is made of Tenant’s share of said Supplemental Rent for the year in which this Lease terminates, Tenant shall within ten
(10) calendar days pay any increase due over the estimated Supplemental Rent previously paid and, conversely, any overpayment made
shall be rebated by Landlord to Tenant within ten (10) calendar days, and this provision shall survive termination for said purpose.
Delay or Failure of Landlord to submit statements as called for herein shall not be deemed to be a waiver of Tenant’s obligation
to pay all sums as herein provided. Tenant shall have the right to audit Supplemental Rent expenses within not more than six (6)
calendar months after service of a reconciliation statement and in the event Tenant’s audit reveals that Tenant overpaid
by more than 4%, Landlord shall reimburse Tenant for its reasonable and actual audit costs. If Tenant fails to exercise its audit
right within six (6) calendar months after service of a reconciliation statement, Tenant shall be conclusively deemed to have accepted
the billed amounts as full and correct and shall be barred from thereafter asserting any inaccuracy or claim for credits or refunds
as only that particular year covered by the reconciliation statement. In the event Landlord does not serve upon Tenant a reconciliation
statement showing the total Supplemental Rent for the Landlord’s Premises for the prior calendar year within twelve (12)
calendar months after the end of the preceding calendar year: (a) Landlord shall be conclusively be deemed to have accepted the
estimated payments for that calendar year as full and correct and shall be barred from thereafter serving a reconciliation statement
or asserting any inaccuracy or deficit between the estimated and billed Supplemental Rent as to only that particular year for which
no reconciliation statement was timely served; and (b) unless Landlord serves a reconciliation statement upon Tenant within thirty
(30) calendar days after a demand by Tenant served during or after the twelfth (12th) calendar month after the close
of the year in question, the Landlord shall be deemed to have served a reconciliation statement affirming that no adjustments are
due to the Supplemental Rent paid for the preceding year, and to audit same with the same rights as if a reconciliation statement
had been properly and timely submitted by the Landlord.

 

3.3          Notwithstanding
anything to the contrary set forth herein, Supplemental Rent shall in no event include any of the following:

 

(a)          the
original construction costs of the Building and improvements to Landlord’s Premises prior to the Commencement Date, or the
Allowance improvements, or Landlord’s Power Generation Systems installed by Landlord pursuant to Section 6.4 through 6.12
cost of this Lease;

 

(b)          principal
and interest payments of mortgage debts or other loan obligations of Landlord, financing costs and amortization of funds borrowed
by Landlord, whether secured or unsecured and all payments of base rent (but not taxes or operating expenses) under any ground
lease or other underlying lease of all or any portion of the Landlord’s Premises;

 

(c)          depreciation
and amortization (except as set forth herein);

 

    	 	10	 

     

    

 

(d)          advertising,
legal and space planning expenses and leasing commissions and other costs and expenses incurred in procuring and leasing the Building;

 

(e)          taxes
to be paid directly by Tenant, whether or not actually paid, provided and on the condition that non-payment of such taxes does
not create a lien or encumbrance against the Landlord’s Premises or against the Tenant improvements that become the property
of the Landlord upon expiration or termination of this Lease;

 

(f)           salaries,
wages, benefits and other compensation paid to officers and employees of Landlord, or management fees paid, for the management
of the Landlord’s Premises;

 

(g)          general
organizational, administrative and overhead costs relating to maintaining Landlord’s existence, either as a corporation,
partnership, or other entity, including general corporate, legal and accounting expenses;

 

(h)          costs
and expenses, including legal fees, incurred in connection with negotiations or disputes with employees, consultants, management
agents, leasing agents, purchasers, prospective future tenants or mortgagees of the Building;

 

(i)           costs
incurred by Landlord due to the violation by Landlord, its employees, agents or contractors of the terms and conditions of any
legal requirements which are not the obligation of Tenant under this Lease;

 

(j)           penalties,
fines or interest incurred as a result of Landlord’s inability or failure to make payment of taxes and/or to file any tax
or informational returns when due, or from Landlord’s failure to make any payment of taxes required to be made by Landlord
hereunder before delinquency unless caused by a failure of the Tenant to timely pay Rent due to Landlord under this Lease in full;

 

(k)          costs
incurred in the sale or refinancing of the Building;

 

(l)           income
taxes of Landlord or the owner of any interest in the Landlord’s Premises, franchise, capital stock, gift, estate or inheritance
taxes or any federal, state or local documentary taxes imposed against Landlord, the Landlord’s Premises or any portion thereof
or interest therein, except taxes imposed in lieu of real estate taxes;

 

(m)         The
cost of any items for which Landlord is reimbursed by insurance or through warranties and the like;

 

(n)          Any
costs for goods and/or services representing an amount paid to any person, firm, corporation or other entity related to Landlord
which is in excess of the fair market value of such goods and/or services; and

 

(o)          Costs
necessitated by or resulting from the negligence or willful misconduct of Landlord, its vendors, agents, employees and/or independent
contractors.

 

		4.	Repairs, Maintenance Security and Surrender Obligations
of Tenant:

4.1          The
Tenant has examined the Demised Premises and has entered into this Lease without any representation on the part of the Landlord
as to the present or future condition thereof, except as may be expressly set forth in this Lease, and accepts the Demised Premises
in “as is”, present condition subject to completion of the Allowance Improvements in accordance with the terms hereof.

 

4.2          The
Tenant shall, at all times during the term of this Lease or any renewals thereof, at its sole expense, put and maintain in thorough
repair and in good and safe condition, and shall make all necessary repairs, replacements, renewals, alterations, ordinary and
extraordinary, to the Demised Premises and its equipment, appurtenances, pipes (servicing exclusively the Demised Premises),, plumbing
systems (servicing exclusively the Demised Premises), HVAC systems (servicing exclusively the Demised Premises), electrical systems
(servicing exclusively the Demised Premises, but excluding the Landlord’s Power Generation Systems ), interior finishes,

 

    	 	11	 

     

    

 

interior partitions, ceilings, window glass,
fixtures, and all other appliances and appurtenances belonging thereto, however the necessity or desirability for repairs may occur,
and whether or not necessitated by wear, tear, obsolescence, or defects, latent or otherwise. The Landlord shall contract for and
keep in effect throughout the Term maintenance contracts on the HVAC systems and the loading dock equipment (including doors and
levelers) exclusively servicing the Demised Premises and all servicing and repairs shall be at the sole cost and expense of the
Tenant , which shall be reimbursed to Landlord as Supplemental Rent. Notwithstanding the foregoing the Landlord shall be solely
responsible at its own cost and expense without reimbursement from Tenant through Supplemental Rent for the cost of repairing any
latent defects in the floor slab within the Demised Premises, within the roof and roof system of the Building and within the structural
walls and elements of the Building, and for other repairs necessitated by the breach of this Lease or the negligence of Landlord,
its employees, agents or contractors.

 

4.3          All
repairs and replacements by Tenant shall be in quality and class at least equal to the original work. On default of the Tenant
in making such repairs or replacements after notice and the lapse of the applicable grace period (except in an emergency), the
Landlord may, but shall not be required to, make such repairs and replacements for the Tenant’s account, and the expense
thereof shall constitute and be collectible as Additional Rent, payable upon demand.

 

4.4          The
Tenant shall maintain all portions of the Landlord’s Premises in a clean and orderly condition free of dirt, rubbish, and
unlawful obstructions, in each case resulting from Tenant’s activities or those of its sublessees, contractors, agents and
invitees.

 

4.5          The
Landlord shall not be required to furnish any services or facilities or to make any repair or alteration in or to the Demised Premises,
except as expressly set forth in this Lease. The Tenant hereby assumes the full and sole responsibility for the condition, operation,
repair, replacement, maintenance, security and management of the Demised Premises.

 

4.6          As
between Landlord and Tenant, Tenant shall be solely responsible to monitor security conditions affecting the use of Landlord’s
Premises by Tenant, its employees, agents, contractors, subtenants and invitees (but not by anyone other than Tenant, its employees,
agents, contractors, subtenants and invitees) and to provide all necessary security to the extent there is a legal obligation to
do so, to secure such persons or their property against negligent or criminal acts and/or omissions of third parties, and Tenant
shall indemnify, defend and hold the Landlord harmless from all claims concerning such matters, including, without limitation,
reasonable counsel fees and litigation expenses incurred by Landlord to defend such claims, unless resulting from the negligence
or misconduct of Landlord or its employees, agents or contractors. Nothing in this section shall impose any obligation upon Tenant
to third persons which is not imposed under applicable law without reference to this Lease and no third party shall be construed
as a third party beneficiary of this provision of this Lease.

 

4.7          In
case any dispute shall arise at any time between the Landlord and the Tenant as to the standard of care and maintenance of the
Landlord’s Premises, such dispute shall be determined by arbitration before a licensed architect mutually agreed upon by
Landlord and Tenant; provided that if the requirement for making repairs or replacements is imposed by any governmental authority
or the holder of any mortgage to which this Lease is subordinate, then such requirement for repairs or replacements shall be complied
with by the Tenant and shall not be considered an arbitratable dispute. The Tenant, however, shall have the right to dispute or
contest the validity, application, or reasonableness of any such governmental requirement so long as Tenant pays or bonds against
any fine or lien such that no fine or lien is imposed against the Landlord or Landlord’s Premises, and the Landlord shall
afford to the Tenant reasonable cooperation in this connection.

 

4.8          Tenant
shall be solely responsible to inspect the Demised Premises and all other portions of Landlord’s Premises used by Tenant
and to immediately upon becoming aware

 

    	 	12	 

     

    

 

thereof provide written notice to Landlord
of any defective or unsafe condition which Landlord may be obligated to repair, maintain or correct.

 

4.9          Upon
any termination of the Term, irrespective of the cause, the Tenant shall timely vacate the Demised Premises, in good order and
condition, reasonable wear and tear and damage by casualty and other matters for which Tenant is not liable hereunder excepted,
with all structures, improvements including, without limitation mechanical, electrical, plumbing, HVAC, and other building systems
in good working order, reasonable wear and tear and damage by casualty and other matters for which Tenant is not liable hereunder
excepted, free of defects or conditions arising from deferred maintenance, in vacant, broom clean condition, and in compliance
with the provisions of Sections 9.1 and 9.2 and Schedule “D” annexed hereto. The phrase “reasonable wear and
tear” as used in this Lease shall mean conditions caused by the age and use of the specified items provided same are regularly
maintained , repaired or replaced in the manner required by Section 4.2 of this Lease. The Demised Premises when returned to Landlord
at the end of the Term shall be a first class warehouse office facility with all fixtures in good working order, reasonable wear
and tear and damage by casualty and other matters for which Tenant is not liable hereunder excepted, with the exclusion of Tenant’s
trade fixtures, which shall be removed at Tenant’s sole cost and expense without damage, injury or waste to the Demised Premises
or the Landlord’s Premises (unless repaired by Tenant in the manner required by Section 4.2 prior to the Termination Date
when possession shall be returned to Landlord). Notwithstanding any contrary interpretation under common law, the term “trade
fixtures” for all purposes in this Lease shall not apply to alterations, additions or improvements to the HVAC, plumbing
or electrical systems at Landlord’s Premises, nor to any other alterations, additions or improvements which are necessary
for the occupancy of the Landlord’s Premises, and all such alterations, additions and improvements shall be treated as alterations
or improvements to the Demised Premises and the disposition of same at the end of the Term shall be controlled by the provisions
of Section 9.1 of this Lease. Any racking systems and material handling equipment which Tenant may acquire from the prior tenant
of the Demised Premises shall be Tenant’s trade fixtures and shall be removed from the Demised Premises at Tenant’s
sole cost and expense without damage, injury or waste to the Landlord’s Premises or any improvements thereon at the end of
the Term (unless repaired by Tenant).

 

		5.	Repairs and Maintenance Obligations of Landlord:

5.1          Except
as otherwise provided in Section 5.2, as a common area charge to which Tenant shall contribute its Proportionate Share in accordance
with Section 3.1(C) of this Lease, the Landlord shall make all repairs, replacements, alterations or renewals and perform all
maintenance to all exterior walls, structural steel, the roof, landscaped areas, parking and loading areas, common areas, sidewalks
and curbs, exterior stairs for ingress and egress, site drainage facilities, HVAC systems (other than HVAC systems servicing a
single tenant, which are the responsibility of the Tenant as provided in Section 4.2), dock seals and/or dock shelters, dock levelers,
loading doors, and all other portions of Landlord’s Premises not specifically listed in Article 4 as the exclusive responsibility
of Tenant. Landlord shall also perform snow and ice removal from parking, loading, and sidewalk areas as a common area charge
as to which Tenant shall contribute its Proportionate Share in accordance with Section 3.1(C). Any repairs to the foregoing areas
resulting from the negligence or wrongful act or omission of Tenant or its agents, employees, contractors, subtenants and/or invitees
shall be at the sole cost of the Tenant and shall be Additional Rent. At Landlord’s option, routine maintenance for which
Tenant shall reimburse Landlord Tenant’s Proportionate Share may include, without limitation, all items noted in Schedule
“C” annexed hereto and made a part hereof. Notwithstanding anything to the contrary Landlord shall be responsible
at Landlord’s sole cost and expense, without contribution from Tenant, to maintain the Landlord’s Power Generation
Systems servicing the Landlord’s Premises.

 

    	 	13	 

     

    

 

5.2          Notwithstanding
anything to the contrary Landlord shall at its sole cost and expense, without reimbursement from Tenant as an element of Supplemental
Rent, repair and correct any latent defects in the floor slab within the Demised Premises, in the roof and roof system of the Building
and in the structural walls and structural steel and other structural elements of the Building.

 

5.3          Landlord
shall not be liable for any failure to make such repairs or to perform any maintenance except if the Landlord fails after written
notice from Tenant to remedy a default within the time provided under Section 13.1 and Tenant expressly waives and releases any
claims of injury to or interference with Tenant's business arising from the making of, or failure to make, any repairs, alterations
or improvements in or to any portion of the Landlord's Premises or the Demised Premises or in or to fixtures, appurtenances and
equipment therein. Notwithstanding the foregoing sentence, if Landlord's default materially and adversely impairs the Tenant’s
use of the Demised Premises (such being a "Material Impairment Condition"), Tenant may serve written notice upon the
Landlord of such Material Impairment Condition. Landlord shall have one (1) business day to commence necessary repairs and thereafter
shall be obligated to diligently prosecute such repairs to a conclusion. If Landlord defaults in its obligation, Tenant shall have
the self-help rights afforded under Section 13.1. Landlord or its agents shall not be liable for any loss or damage to persons
or property resulting from fire, explosion, steam, gas, electricity, water or rain which may leak from any part of the Landlord’s
Premises or from the pipes, appliances or plumbing works therein or from the roof, street or subsurfaces or from any other place
resulting from dampness or any other cause whatsoever, unless caused by or due to the negligence or intentional misconduct of Landlord,
its agents, servants or employees. Landlord or its agents shall not be liable for interference with the light, air, or for any
latent defect in the Landlord’s Premises.

 

5.4          The
Landlord agrees that as of the Commencement Date the Demised Premises shall be delivered to the Tenant in clean and first class
condition with all essential systems in good working order and with all of the Allowance Improvements Substantially Completed,
as provided at Article 40 of this Lease. After the Substantial Completion Date, as defined in Article 40 of this Lease, Landlord
shall within a reasonable time finish any punch list items respecting Landlord’s improvements which remain outstanding.

 

		6.	Utilities and Personal Property Taxes:

6.1          Tenant
shall timely pay directly to all utility suppliers the cost for all water, gas, heat, light, power, sewer charges, telephone service,
fire alarm monitoring and all other services and utilities supplied to the Demised Premises, including without limitation hook-up
and installation fees or charges, together with any taxes thereon, and all required escrows. If any utilities are not separately
metered, Tenant shall reimburse the Landlord for its Proportionate Share of the utility costs. All such obligations shall be Additional
Rent and in the event Tenant fails to make such payments, Landlord shall have the remedies available for non-payment of Additional
Rent.

 

6.2          In
the event the Demised Premises are connected to public utilities by means of lines passing through the Landlord’s Premises
outside the Demised Premises, it shall be the Landlord’s responsibility to maintain said lines as a Tenant common area expense
to which Tenant shall contribute its Proportionate Share under Section 3(C) of this Lease, provided however that Landlord’s
responsibility shall not extend further than to repair any breaks or obstructions in said lines with reasonable dispatch after
being advised of same, and to refrain from any negligent action to cause any such break or obstruction. Tenant’s repair responsibility
in respect to any such lines shall be limited to their entry into the Demised Premises, provided however Tenant shall pay
Tenant’s Proportionate Share of the cost of any exterior repairs performed by Landlord. In no event shall Landlord be responsible
for any interruption of service of any utility to the Demised Premises

 

    	 	14	 

     

    

 

occurring by reason of any act or condition
not caused by Landlord’s (or its employees’, agents’ or contractors’) negligence or willful misconduct,
and there shall be no abatement of any payments due from Tenant to Landlord hereunder by reason of any such interruption; provided
that, in the case of a “Material Impairment Condition” the Tenant shall have the rights granted under Section 5.3 and
Section 13.1 of this Lease.

 

6.3          Tenant
shall pay, or cause to be paid, before delinquency, any and all taxes levied or assessed and which become payable during the term
hereof upon all Tenant’s leasehold improvements, equipment, furniture, fixtures, and any other personal property located
in the Demised Premises. In the event any or all of the Tenant’s leasehold improvements, equipment, furniture, fixtures and
other personal property shall be assessed and taxed with the Landlord’s Premises, Tenant shall pay to Landlord such taxes
applicable to Tenant’s property within ten (10) days after delivery to Tenant by Landlord of a statement in writing setting
forth the amount of such taxes applicable to Tenant’s property.

 

		7.	Tenant Responsible for Damage to Glass or Other Property:

7.1          Without
limiting the scope of Article 4 of this Lease in case of the destruction of or any damage to the glass in the Demised Premises,
or the destruction of or damage of any kind whatsoever to the Demised Premises, the Tenant shall repair the said damage or replace
or restore any destroyed parts of the Demised Premises, as provided in Section 4.2 (subject to repairs and restoration that are
the Landlord’s responsibility pursuant to Articles 4, 5 and 19), and shall be entitled to reimbursement of costs from any
insurance proceeds paid and collected for such damage or loss.

 

		8.	Use of Demised Premises:

8.1          The
Demised Premises shall be used and occupied only as a warehouse/ and office facility (with incidental related uses) and for no
other use or purpose without Landlord’s prior written consent, which consent shall not be unreasonably withheld. Tenant
shall not use or permit the use of the Demised Premises or any part thereof in any way which would violate any certificate of
occupancy for the Demised Premises, or any of the covenants, agreements, terms, provisions and conditions of this Lease or for
any unlawful purposes, or in any unlawful manner and Tenant shall not suffer or permit the Demised Premises or any part thereof
to be used in any manner, or anything to be done therein, or suffer or permit anything to be brought into or kept in the Demised
Premises which, in the reasonable judgment of Landlord, shall in any way impair or interfere with the proper and economic heating,
cleaning, air conditioning or other servicing of the Landlord’s Premises, or impair or interfere with the use of any of
the other areas of the Landlord’s Premises; provided that, in no event shall the foregoing prevent tenant from using the
Demised Premises as a warehouse/ and office facility.

 

8.2          If
any governmental license or permit, including, without limitation, a certificate of occupancy shall be required for the proper
and lawful conduct of Tenant’s business or other activity carried on in the Demised Premises, and if the failure to secure
such license or permit would, in any way, affect Landlord, Tenant, at Tenant’s expense, shall duly procure and thereafter
maintain such license or permit and submit the same to inspection by Landlord. Tenant, at Tenant’s expense, shall, at all
times, comply with the terms and conditions of each such license or permit. Landlord shall obtain and deliver to Tenant an Occupancy
Certification and Certificate of Occupancy respectively from the New Jersey Meadowlands Commission and the Borough of Carlstadt
at the Commencement Date and thereafter, if a further Certificate of Occupancy or Occupancy Certification is required due to alterations
or work at the Demised Premises by Tenant (other than the Allowance Work for which Landlord shall obtain all required Licneses,
permits and certificates), the Landlord will provide reasonable assistance to the Tenant in obtaining such a Certificate of Occupancy
or Occupancy Certification with Tenant to pay the governmental fee.

 

    	 	15	 

     

    

 

8.3          Tenant
shall not do, nor permit to be done, anything in connection with its occupancy of the Demised Premises which will cause a cancellation
or non-renewal of any insurance policy covering said Landlord’s Premises, or otherwise render Landlord’s Premises uninsurable.

 

8.4          Tenant
shall not permit injury to the Demised Premises or to the Landlord’s Premises outside the Demised Premises by any action
such as (1) Concentrating loads on floors, roofs or any other area beyond their capacity, (2) Depositing, or permitting the deposit
of any item or substance into storm or sanitary sewer lines which might obstruct or damage same, (3) Discharging excessive quantities
of water or any quality of effluent which might overtax or damage the sewer system or plant serving the Landlord’s Premises,
(4) Making or permitting any installation or hole in any roof, exterior walls, floor, or outside area, without prior written permission
from Landlord, (5) Producing any vibration liable to damage or weaken the structure of the Demised Premises or of the Landlord’s
Premises or to undermine the ground supporting same.

 

8.5          Tenant
shall not use or allow the Demised Premises to be used for any, unlawful purpose; nor shall Tenant cause, maintain or permit any
nuisance in, on or about the Demised Premises; nor shall Tenant take actions which shall impair or cause revocation of any tax
credits or abatements now or hereafter in effect for the Landlord’s Premises.

 

8.6          Tenant
shall not commit or allow to be committed any physical waste in or upon the Demised Premises.

 

8.7          Tenant
shall not use the Demised Premises or permit anything to be done in or about the Demised Premises, which will in any way conflict
with any applicable law, statute, ordinance or governmental rule or regulation now in force or which may hereafter be enacted or
promulgated. Tenant shall, at its sole cost and expense, promptly comply with all applicable laws, statutes, ordinances and governmental
rules, regulations or requirements now in force or which may hereafter be in force and with the requirements of any board of fire
underwriters or other similar bodies now or hereafter constituted relating to or effecting the condition, use or occupancy of the
Demised Premises. The judgment of any court of competent jurisdiction or the admission of Tenant in any action against Tenant,
whether Landlord be a party thereto or not, that Tenant has violated any law, statute, ordinance or governmental rule, regulation
or requirement, shall be conclusive of that fact as between the Landlord and Tenant.

 

8.8          Tenant
warrants and guarantees that its North American Industry Classification Number (NAICS) is 493110, that the Tenant shall not use
or permit the Demised Premises to be used as an Industrial Establishment as defined by the Industrial Site Recovery Act, N.J.S.A.
13:1K-6 et seq. or any rules and regulations promulgated thereunder (collectively, “ISRA”), and that no explosive or
highly flammable materials shall be stored, used, generated or disposed of at the Demised Premises.

 

8.9          Tenant
warrants and guarantees that it is not now, and shall not be at any time throughout the Term, an entity with which a citizen of
the United States is prohibited from transacting business by the Office of Foreign Assets Control, Department of the Treasury (“OFAC”),
including, without limitation, the executive orders and/or lists published by OFAC. Tenant is and throughout the Term shall remain
in compliance with all applicable provisions of the USA Patriot Act of 2001, Pub. L. No. 107-56, the Bank Secrecy Act of 1970,
as amended, 31 U.S.C. Section 5311 et seq., the Trading with the Enemy Act, 50 U.S.C. App. Section 1 et seq., the International
Emergency Economic Powers Act, 50 U.S.C. Section 1701 et seq., and the sanction regulations promulgated pursuant thereto by OFAC,
or laws relating to prevention and detection of money laundering, 18 U.S.C. Sections 1956 and 1957.

 

    	 	16	 

     

    

 

8.10        Tenant
shall not use, nor have access to the roof of the Demised Premises without Landlord’s prior consent in each instance, which
consent may be withheld by Landlord in its sole and absolute discretion.

 

8.11        Landlord
represents and warrants that (a) the use and occupancy of the Demised Premises for the uses permitted hereunder does not conflict
with any law, statute, ordinance or governmental rule or regulation now in force or any easements, covenants, restrictions, agreements
or encumbrances affecting title to the Demised Premises, (b) a permanent certificate of occupancy for the Demised Premises as they
will exist on the Commencement Date is, or prior to the Commencement Date will be, in force and will not be violated by the use
and occupancy of the Demised Premises for the uses permitted hereunder, (c) all other licenses and permits required for Tenant’s
use and occupancy of the Demised Premises (other than any license or permit required for the conduct of Tenant’s particular
business) is, or prior to the Commencement Date will be, in force and will not be violated by the use and occupancy of the Demised
Premises for the uses permitted hereunder, and (d) on the Commencement Date, the heating, ventilating, air condition, plumbing,
electrical, mechanical and other systems serving the Demised Premises will be in good working order, repair and condition, and
the roof will be free of leaks.

 

		9.	Alterations and improvements:

9.1          Tenant
shall not make any alterations, decorations, additions or improvements, in or to the Demised Premises without first obtaining
Landlord’s written consent thereto, which consent may be arbitrarily withheld with respect to any proposed structural alterations
or additions, but shall not be unreasonably withheld as to other alterations or additions; provided that no consent shall be required
for purely decorative alterations, or other non-structural alterations which do not affect any building systems costing, in the
aggregate, less than $200,000 provided that for any non-structural alterations or improvements not affecting any building systems
having a value in the aggregate of more than $50,000 Tenant shall provide the Landlord with a copy of all permits and plans and
specifications for such alterations and improvements before the work commences, and a copy of all governmental inspections and
approvals upon completion of such work. Landlord may in its sole and absolute discretion provide notice to the Tenant not later
than three (3) months prior to expiration of the Termination Date that Landlord elects to assume ownership of any or all of such
alterations, decorations, additions or improvements, in which case such items shall become the property of the Landlord upon expiration
of the Term and shall be turned over to Landlord in good condition and repair, reasonable wear and tear, damage by casualty, and
other matters which are not Tenant’s responsibility hereunder excepted. If Landlord does not elect to assume ownership by
notice to Tenant as provided in the preceding sentence, all alterations, decorations, additions or improvements upon the Demised
Premises made by either party (including, but not limited to, paneling, partitions, railings, and the like), shall be removed
from the Demised Premises and the Demised Premises shall be restored to substantially the same condition as at the Commencement
Date at the end of the Term, in the manner hereinafter provided at the sole cost of the Tenant. Notwithstanding the foregoing,
the Tenant shall not be required to remove those Allowance Improvements located within the existing office areas of the Demised
Premises. Tenant shall at Tenant’s sole cost and expense engage competent contractors reasonably acceptable to the Landlord
to remove all alterations, decorations, additions and improvements and to restore the Demised Premises and deliver same to Landlord
on the Termination Date in accordance with the attached Schedule “D” (all such work hereinafter referred to as the
“Restoration Work”) at Tenant’s expense; except that in the case of Restoration Work that involves structural
work to the Building or work to areas outside of the Demised Premises, Tenant shall, at the Landlord’s option in Landlord’s
sole discretion, either: (a) pay the Landlord the reasonable cost to perform the structural work at Tenant’s sole cost and
expense; or (b) Tenant shall at Tenant’s expense

 

    	 	17	 

     

    

 

engage competent contractors reasonably
acceptable to the Landlord to complete the structural or exterior restoration work..

 

9.2          If,
because of any acts or omission of Tenant or anyone claiming through or under Tenant, any mechanic’s or materialmen’s
notice of intention or mechanic’s or materialmen’s or other lien or order for the payment of money shall be filed against
the Demised Premises, the Landlord’s Premises, or against Landlord (whether or not such lien or order is valid or enforceable
as such), Tenant shall, at Tenant’s own cost and expense, cause the same to be canceled and discharged of record (by payment,
bonding or otherwise) within thirty (30) days after the date of filing thereof, and shall also indemnify and save harmless Landlord
from and against any and all costs, expenses, claims, losses or damages, including reasonable counsel fees, resulting therefrom
or by reason thereof. If any governmental charge or assessment, including, without limitation COAH affordable housing fees and/or
assessments are imposed as a result of any of Tenant’s repairs, replacements or alterations in or to the Demised Premises,
same shall be satisfied in full by Tenant as and when due.

 

9.3          In
the event Tenant makes any repairs, replacements, or alterations in or to the Demised Premises, any contractors or subcontractors
employed by Tenant shall not be reasonably objectionable to Landlord. Tenant’s contractor(s) must only use such labor as
will not result in jurisdictional disputes with any labor unions or in strikes against or involving the Landlord or Landlord’s
Premises. Tenant will inform Landlord, in writing, of the names of contractors and/or subcontractors Tenant proposes using to do
work in its behalf in or about the Demised Premises at least seven (7) days prior to the beginning of any permitted work. Landlord
reserves the right to reject any and all of the proposed contractors and/or subcontractors if a conflict would be likely to exist
in Landlord’s reasonable judgment. In the event of any strike or dispute, Tenant will cause any persons involved in such
work to leave the Demised Premises immediately after receipt of notice from Landlord demanding the same.

 

9.4          Providing
that it can do so at no incremental cost, all improvements and alterations to the Landlord’s Premises made by or on behalf
of Tenant shall to the extent reasonably practicable be designed to preserve and promote any sustainable or green building certification(s)
now existing or hereafter obtained by the Landlord in its discretion for the Landlord’s Premises, including without limitation,
LEED certifications, Green Globe certifications of the Green Building Initiative, ASHRAE 90.1-2007 certification, Energy Star certifications
and certifications under similar recognized standards promulgated by governmental entities or widely recognized private organizations.

 

9.5          Landlord
shall respond to any request for consent to an alteration not later than thirty (30) days after receipt of Tenant’s
written request for such consent. In the event that Landlord fails to respond to Tenant’s request for consent to an alteration
within twenty (20) days after Landlord’s receipt of such request, then from and after such twenty (20) day period, Tenant
shall have the right to deliver a reminder notice to Landlord requesting Landlord’s consent to such alteration, which reminder
notice shall state in bold upper case letters at the top of the first page as follows: “THIS IS A TIME SENSITIVE NOTICE
AND IF LANDLORD SHALL FAIL TO TIMELY RESPOND, LANDLORD SHALL BE DEEMED TO HAVE APPROVED TENANT’S REQUEST.” If Tenant
shall have delivered such reminder notice to Landlord, and Landlord shall fail to respond to such reminder notice within ten (10)
days after Landlord’s receipt of such reminder notice, then Landlord shall be deemed to have consented to the alteration
in question.

 

    	 	18	 

     

    

 

		10.	Laws and Ordinances:

10.1        Subject
to Section 10.3, Tenant shall promptly comply with the statutes, ordinances, rules, order, regulations and requirements of the
Federal, State and Municipal governments and of any and all their departments and bureaus applicable to the Demised Premises,
for the correction, prevention and abatement of nuisances, violations or other grievances in, upon or connected with said Demised
Premises during said term, arising from, incident to, or connected with the use and occupation of the Demised Premises by the
Tenant. The Tenant shall also promptly comply with all reasonable rules, orders and regulations of the Board of Fire Underwriters
for the prevention of fires, at its own cost and expense, arising from, incident to or connected with the use and occupation of
said Demised Premises by the Tenant.

 

10.2        Subject
to Section 10.3, Tenant shall, at Tenant’s own expense, comply with the Industrial Site Recovery Act, N.J.S.A. 13:1K-6 et
seq. and with the Spill Compensation and Control Act (N.J.S.A. 58:10-23-11 et seq.) (“the Acts”) and all regulations
promulgated pursuant to the Acts. Tenant shall, at Tenant’s own expense, provide all information within Tenant’s control
requested by Landlord or the Bureau of Industrial Site Evaluation for the preparation of submissions, declarations, reports and
plans pursuant to the Acts. If the New Jersey Department of Environmental Protection (DEP) shall determine that a clean-up plan
or Remedial Action Work plan be prepared and that a clean-up be undertaken because of any spills or discharges of Hazardous Substances
caused by Tenant’s officers, directors, employees, agents or invitees, or by other parties under Tenant’s authority
or control or which are otherwise the fault or responsibility of Tenant at the Landlord’s Premises which occur during any
period when Tenant was an occupant, then all such work shall be completed at Tenant’s sole cost and expense in the manner
provided at Section 28.4 of this Lease. Tenant shall indemnify, defend and save the Landlord harmless from all fines, suits, procedures,
claims and actions of any kind arising out of or in any way connected with any spills or discharges of Hazardous Substances caused
by the Tenant’s or other parties under Tenant’s authority or control at the Landlord’s Premises which occur during
the term of Tenant’s occupancy. Tenant’s obligations and liability under this paragraph shall survive and shall continue
so long as Landlord remains responsible for any spills or discharges of hazardous substances or wastes at the Landlord’s
Premises which occur during the term of Tenant’s occupancy.

 

10.3        Landlord
warrants to the Tenant that as of the Commencement Date the Landlord’s Premises (including the Demised Premises) shall be
in compliance with all statutes, ordinances, rules, order, regulations and requirements of the Federal, State and Municipal governments
and of any and all their departments and bureaus applicable to the Landlord’s Premises and that the Landlord’s Premises
shall be in compliance with all Environmental Laws (as defined in Section 28.1). Landlord shall indemnify, defend and save the
Tenant harmless from all fines, suits, procedures, claims and actions of any kind arising out of or in any way connected with any
spills or discharges of Hazardous Substances at the Landlord’s Premises which occur prior to the Commencement Date or which
are not Tenant’s responsibility pursuant to Section 10.2, other than as a result of any action or omission on the part of
the Tenant, or its agents, servants, contractors or employees. Landlord’s obligations and liability under this Section 10.3
shall survive and shall continue so long as the Tenant remains responsible for any such spills or discharges of Hazardous Substances
at the Landlord’s Premises.

 

		11.	Insurance:

11.1        Effective
as of the date Tenant is first granted the right to enter the Landlord’s Premises and throughout the Term of this Lease,
Tenant shall maintain, at its sole cost and expense, general public liability insurance (also known as commercial general liability
insurance) against claims for personal injury, death or property damage, with limits of not less than Five Million

 

    	 	19	 

     

    

 

($5,000,000.00) Dollars Combined Single
Limit (“CSL”) in respect of bodily injury and property damage. A combination of commercial general liability coverage
and umbrella liability coverage is acceptable to comply with this limit.

 

11.2.       The
Landlord shall carry for the benefit of the Landlord, fire insurance, business interruption insurance for loss of Rents, and flood
insurance in an amount equal to the replacement value of the building and not less than the requirements of any mortgagee holding
a mortgage on the Landlord’s Premises. Landlord shall be named as insured and loss payee under said policy. Tenant shall
pay to the Landlord Tenant’s Proportionate Share of the cost of said insurance in the manner provided at Article 3 of this
Lease.

 

11.3        Landlord
may carry commercial general liability insurance, in addition to Tenant’s commercial general liability insurance requirement
under Section 11.1, naming Landlord as the insured. Tenant shall be required to pay as Supplemental Rent Tenant’s Proportionate
Share of the cost of Landlord’s policies of insurance under this Section 11.3.

 

11.4        All
insurance required to be maintained by the Tenant shall be issued by insurers with a rating of A- X or better by Best’s Insurance
Key Rating Guide published by A. M. Best Company, which are licensed in New Jersey. Throughout the Term not less than thirty (30)
days prior to the expiration dates of all expiring insurance policies Tenant shall deliver to Landlord original policies or, if
applicable, certificates of insurance under Section 11.6, for replacement insurance policies in compliance with this Article 11.
Within fifteen (15) days after the premium on each such policy or contract shall become due and payable and the amount thereof
determined, such premium shall be paid by the Tenant and the Landlord shall be furnished with satisfactory evidence of such payment.

 

11.5        All
policies of insurance required to be maintained by the Tenant shall name the Tenant as the insured and shall name the Landlord
and Landlord’s lender(s) as additional insureds as their respective interests may appear. All such policies shall contain
an agreement by the insurers that such policies shall not be canceled or materially changed without at least thirty (30) days prior
written notice to the Landlord; provided that if a 30 day notice is not obtainable without additional premium cost to Tenant, then
the longest period available, if any, without additional premium cost to Tenant shall be provided, and, further, if only an agreement
“to endeavor” to provide notice is available then same shall be provided, but if no such agreement will be provided,
Tenant shall not be deemed in breach of this provision. Tenant shall provide at least thirty (30) days written notice to the Landlord
prior to cancelation or material change in such policy(ies) of insurance.

 

11.6        Tenant
may carry the insurance referred to in Section 11.1 of this Lease under any blanket policy of insurance or policies issued by its
present or future insurance carriers. If the Tenant elects to provide insurance as herein set forth under any blanket policy or
blanket coverage, the Landlord will be provided with evidence of such insurance in the form of an Accord 27 or equivalent certificate
of insurance together with proof of payment of the premium and, subject to Section 11.5, said certificate or certificates shall
provide that the Landlord shall receive written notice from the insurer prior to cancellation or material change in the coverage
as provided in Section 11.5. All of Tenant’s policies of insurance shall be primary notwithstanding that coverage may also
exist under a policy held by Landlord.

 

11.7        If
Tenant fails to timely obtain, maintain, pay premiums and deliver to Landlord proof of such actions within the time and in the
manner required by this Article 11, the Landlord may, on three (3) business days notice to Tenant, procure any such insurance or
insurances and/or pay the premiums and other charges incidental thereto, and any and all amounts so paid by the Landlord, together
with interest thereon from the date of such payment at the rate of eighteen (18%) per cent per annum, shall be Additional Rent
hereunder.

 

    	 	20	 

     

    

 

11.8        In
the event Tenant’s use and occupancy of the Demised Premises (other than use or occupancy for the uses permitted hereunder)
causes any additional charge or increase in the insurance premiums on the Landlord’s Premises, in excess of those rates which
would normally be imposed for insuring a non-combustible building of similar construction, Tenant shall, from time to time, immediately
upon receipt of notice from Landlord, do whatever is reasonably deemed necessary, and follow whatever reasonable recommendations
may be made by the Landlord, in order that such excess charge or increase in insurance premiums may be removed and the lower premium
rate restored; or, in the event conditions are such that nothing can be done by way of improvements or otherwise to remove such
increased insurance premiums, or if the expense involved is excessive, then Tenant shall pay the full amount of such additional
charges or increases in premium on demand as Additional Rent.

 

11.9        All
policies of insurance required to be obtained by Tenant pursuant to this Lease shall be written by licensed insurance companies
authorized to do business in New Jersey. All certificate of insurance, shall be delivered to Landlord within 10 days after issuance
thereof.

 

11.10      Tenant
and Landlord shall obtain waivers of subrogation for the benefit of one another, from any company issuing any policy of insurance
obtained by either of them for or in connection with Tenant’s use or occupancy of the Demised Premises, the Landlord’s
Premises or which may be obtained in accordance with the provisions of this Lease.

 

		12.	Landlord’s Liability:

12.1        The
Landlord shall not be liable for any personal injury to any person, including the Tenant or to its officers, agents, employees,
contractors or invitees or for any damage to any property of any person, including the Tenant, irrespective of how such injury
or damage may be caused, whether from action of the elements, or acts of negligence of or occupants of adjacent properties, or
other causes, except if caused by or resulting from the Landlord’s (or its employees’, agents’ or contractors’)
willful malfeasance or negligence . Under no circumstances shall Landlord or Tenant be liable for consequential damages, such
as, but not limited to, loss of profits, injury to good will or intangible business interests or property, and each of Landlord
and Tenant expressly waives and releases any and all such claims no matter how they arise; provided however that nothing herein
limits the right of Landlord to recover lost Rent resulting from Tenant’s breach of this Lease or loss of rents from a new
Tenant in the event of an unauthorized hold-over beyond the Termination Date notwithstanding that all or a portion of such amounts
might be considered to be lost profits..

 

12.2        Tenant
hereby waives all claims against Landlord for damages to goods, equipment, improvements, wares, and merchandise in, upon or about
the Demised Premises and for injuries to Tenant, its agents or third persons in or about the Demised Premises, from any cause arising
at any time, except if both uninsured and caused by Landlord's willful malfeasance or negligence.

 

12.3        The
term “Landlord” as used in this Lease shall be limited to mean and include only the owner or owners at the time in
question of the Landlord’s Premises and in the event of any transfer or transfers of the title to the Landlord’s Premises,
the then Grantor shall be automatically freed and relieved from and after the date of such conveyance or transfer of all liability
for the performance of any covenants or obligations on the part of Landlord contained in this Lease thereafter to be performed,
provided that the Grantee expressly assumes such obligations and any funds then in the hands of such Grantor, in which Tenant has
an interest, shall be delivered to the Grantee.

 

    	 	21	 

     

    

 

12.4        Tenant
agrees that it shall look solely to the estate and equity of the Landlord in the Landlord’s Premises (and the rents and proceeds
thereof) for the collection of any judgment (or other judicial process) against the Landlord or any predecessor Landlord in the
event of any default or breach by Landlord with respect to any of the terms, covenants and conditions of this Lease to be observed
and/or performed by Landlord and/or any other cause of action against the Landlord, and no other assets of Landlord or any predecessor
Landlord shall be subject to levy, execution or other procedures for the satisfaction of Tenant’s remedies. Tenant irrevocably
waives and releases Landlord from any claims in excess of such interest in the Landlord’s Premises (and the rents and proceeds
thereof).

 

12.5        Landlord
and Tenant hereby waive trial by jury in any action, proceeding or counterclaim brought by either party against the other on any
matter whatsoever arising out of or in any way connected with this Lease, the relationship of Landlord and Tenant, and Tenant’s
use or occupancy of the Demised Premises, including, without limitation, any claim of injury or damage, and any claim of breach
of Lease or other obligation and other statutory remedy with respect thereto. Tenant shall not interpose any counterclaim of any
kind (other than any compulsory counterclaim) in any action or proceeding commenced by Landlord to recover possession of the Demised
Premises, but Tenant may bring any claim against landlord in a separate proceeding.

 

		13.	Default of Landlord:

13.1        Landlord
shall not be in default unless Landlord fails to perform obligations required of Landlord within a reasonable time, but in no
event later than thirty (30) days after written notice by Tenant to Landlord specifying wherein Landlord has failed to perform
such obligation; provided, however, that if the nature of Landlord’s obligation is such that more than thirty (30) days
are required for performance, then Landlord shall not be in default if Landlord commences performance within such 30-day period
and thereafter diligently prosecutes the same to completion. In no event shall Tenant have the right to terminate this Lease as
a remedy for a Landlord default. Notwithstanding the foregoing, in emergency circumstances where the failure to repair or replace
would result in a Material Impairment Condition (defined at Section 5.3) and it is impracticable to give Notice to the Landlord
and permit Landlord to carry out the repair pursuant to Section 5.3, then Tenant shall have the right to perform Landlord’s
obligations and be reimbursed for the reasonable cost thereof, if applicable, as a common expense or, otherwise at Landlord’s
sole expense, so long as Tenant provides Landlord with notice thereof promptly after performing such obligations. If Landlord
defaults in its obligation to reimburse Tenant for such costs, Tenant shall have the right to file an action in the Superior Court
of New Jersey to recover such costs with interest at the rate specified in Section 11.7 of this Lease, and the prevailing party
in such an action shall be entitled to recover and reasonable attorneys’ fees, expert witness fees and costs of suit in
such action.

 

		14.	Default of Tenant:

14.1        If
Tenant shall be late in the payment of any installment of Fixed Rent or any regular monthly installment of Supplemental Rent and
if such breach shall continue for seven (7) days, Tenant shall be conclusively deemed to be in material breach of this Lease.
Notwithstanding the foregoing, before Landlord through legal action re-enters and resumes possession of the Demised Premises as
a result of such non-payment, Landlord agrees that with respect to the first three (3) occasions of such default in any twelve
month period Landlord shall serve Tenant with written notice of the default and allow Tenant one (1) business day from the date
of service of the notice to cure the default by payment by wire transfer or bank check of the full amount due with any late fee
which may have accrued as a result of such default.

 

    	 	22	 

     

    

 

14.2        If
Tenant shall be late in the payment of any payment of Supplemental Rent (other than regular monthly installment payments covered
by Section 14.1) or any Additional Rent, or shall fail to post any portion of the Security Deposit or otherwise breach Article
25 of this Lease, and if such breach shall continue for fifteen (15) days after Landlord shall have served Tenant with an invoice
or written notice of the amount due, Tenant shall be conclusively deemed to be in material breach of this Lease. Notwithstanding
the foregoing, before Landlord through legal action re-enters and resumes possession of the Demised Premises as a result of such
non-payment, Landlord agrees that with respect to the first three (3) such defaults in any twelve month period Landlord shall serve
Tenant with written notice of the default and allow Tenant one (1) business day from the date of service of the notice to cure
the default by payment by wire transfer or bank check of the full amount due with any late fee which may have accrued as a result
of such default.

 

14.3        If,
during the term of this Lease, (a) Tenant shall make an assignment for the benefit of creditors, or (b) a voluntary petition be
filed by Tenant under any law having for its purpose the adjudication of Tenant a bankrupt, or the extension of time for payment,
composition, adjustment, modification, settlement or satisfaction of the liabilities of Tenant or the reorganization or liquidation
of Tenant, or (c) a receiver be appointed for the property of Tenant by reason of the insolvency or alleged insolvency of Tenant,
or if (d) any department of the state or federal government or any officer thereof or duly authorized Trustee or Receiver shall
take possession of the business or property of the Tenant or if (e) an involuntary petition be filed against Tenant under any law
having for its purpose the adjudication of Tenant as a bankrupt, or for the liquidation of Tenant; and (except with respect to
items (a) and (b), supra, which shall be non-curable events of default) if same have not been removed, cured or discharged
within sixty (60) days; or if (f) any Receiver or Trustee pursuant to any bankruptcy or insolvency law, whether Federal or State,
shall attempt to thereafter assign this Lease to any party or attempt to sublet all or any part of the Demised Premises, then Tenant
shall be conclusively deemed to be in material breach of this Lease.

 

14.4        If
(a) Tenant shall default in the performance or observation of any other agreement or condition (other than payment of Rent or Additional
Rent) on its part to be performed or observed, and if Tenant shall fail to cure said default within thirty (30) days after notice
of said default by Landlord (or, in the case of a default not susceptible of a cure within thirty (30) days, if Tenant shall fail
to commence a cure within thirty (30) days and diligently complete such cure within a reasonable time); or (b) if Tenant shall
make default with respect to any other Lease between it and Landlord; or (c) in the event Tenant is more than seven (7) days late
in respect to any three (3) months' Rent due hereunder, which three (3) months fall within a consecutive 6-month period, then,
in any of said cases, (notwithstanding any waiver of any former breach of agreement or condition or waiver of the benefit hereof
or consent in a former instance), Tenant shall be conclusively deemed to have materially breached this Lease.

 

14.5        In
the event of any material breach by Tenant, Landlord may (a) permit Tenant to remain in possession and sue for all Rents, damages,
attorneys’ fees and collection costs as due; or (b) terminate this Lease by written declaration, but allow Tenant to remain
in possession as Tenant at Will and sue Tenant for all Rents, damages, attorneys’ fees and collection costs as due; or (c)
Landlord may immediately, or at any time thereafter, through legal process, re-enter and resume possession of the Demised Premises
and remove all persons and property therefrom either by summary dispossess proceedings or by a suitable action or proceeding at
law or in equity, or in the case of permanent abandonment of the Demised Premises by the Tenant by peaceful self-help, without
being liable for any damages therefor (no re-entry by the Landlord shall be deemed an acceptance of a surrender of this Lease unless
accompanied by a written declaration signed by Landlord to that effect); or (d) upon re-taking possession, keep the Demised Premises
vacant (subject to reasonable efforts at mitigation of Landlord’s damages) and recover from Tenant all Rents, damages, attorneys’
fees and

 

    	 	23	 

     

    

 

collection costs as hereinafter provided;
or (e) upon re-taking possession Landlord may, as Tenant’s agent and without effecting Tenant’s liability hereunder,
relet the whole or any part of the Demised Premises for a period equal to, or greater, or less than the remainder of the then term
of this Lease, at such rental and upon such terms and concessions as Landlord shall deem reasonable, to any lessee or lessees which
it may deem suitable and satisfactory for any use and purpose which it may deem appropriate. In no event shall the Landlord be
liable in any respect for failure to relet the Demised Premises or in the event of such reletting, for failure to collect the rent
thereunder. Any sums received by the Landlord on a reletting for any monthly installment of rent in excess of the Rent reserved
in this Lease shall belong to Landlord. Without liability to Tenant or any other party and without constituting a constructive
or actual eviction, Landlord may suspend or discontinue furnishing or rendering to Tenant any work then being performed by Landlord
for Tenant, wherever Landlord is obligated to furnish or render the same, so long as Tenant is in material default under this Lease.

 

14.6        Delinquent
Fixed Rent and Additional Rent not paid within ten days after its due date shall bear interest at the lower rate of either twelve
(12%) per cent per annum or the maximum rate permitted by law, from the date on which it is due until the date on which it is paid;
provided that landlord agrees to waive such interest the first time Tenant is so delinquent in any 12 month period. This provision
shall not relieve Tenant from any payment of Fixed Rent, late charges or Additional Rent at the time due and in the manner specified
herein.

 

14.7        Tenant
hereby expressly waives the service of notice of intention to re-enter as provided for in any statute and also waives any and all
rights or equity of redemption in case the Tenant shall be dispossessed by a Court. The terms “enter,” and “re-enter,”
“entry,” or “re-entry,” as used in this Lease, are not restricted to their technical legal meaning.

 

14.8        The
termination of this Lease by reason of Tenant’s default hereunder shall not in any circumstance operate to relieve the Tenant
from liability for performance of all of its obligations hereunder. Upon any such termination of this Lease, Tenant covenants that
it will quit and surrender the Demised Premises and deliver possession thereof to Landlord.

 

14.9        No
waiver by the Landlord or the Tenant of any default or breach by the other party shall constitute or be construed as a waiver of
any other or future default or breach, nor shall lapse of time after breach or default by a party before the wronged party shall
exercise its rights hereunder operate to defeat the right of such party. No waiver by either party shall be effective unless in
writing.

 

14.10      The
acceptance by Landlord of Rent or other charges from Tenant (in whole or in part) after any default or breach by Tenant of any
lease clause or covenant, even though known to Landlord, shall not constitute a waiver of the default/breach. The acceptance by
Landlord of Rent or other charges from Tenant (in whole or in part) shall not be deemed an accord and satisfaction in respect of
any claims of Landlord against Tenant, notwithstanding the payment check or accompanying letter may bear a legend or endorsement
to the contrary. The acceptance of payment as above shall not affect any notice of default or any action or proceedings or judgment
or order taken in consequence of the default.

 

14.11      In
the event of a breach or threatened breach on the part of Tenant or Landlord with respect to any of the covenants, agreements,
terms, provisions or conditions on the part of or on behalf of such party to be kept, observed or performed, both parties shall
also have the right of injunction. The specified remedies to which either party may resort hereunder are cumulative and are not
intended to be exclusive of any other remedies or means of redress to which either may lawfully be entitled at any time, and either
party may invoke any remedy allowed at law or in equity as if specific remedies were not herein provided for, so long as such remedies
have not been waived by the terms of this Lease.

 

    	 	24	 

     

    

 

14.12      In
the event of (1) the termination of this Lease under the provisions of Article 14 hereof, (2) the re-entry of the Demised Premises
by Landlord under the provisions of this Article 14, or (3) the termination of this Lease (or re-entry) by or under any summary
dispossess or other proceeding or action or any provision of law by reason of default hereunder on the part of Tenant, Landlord
shall be entitled to retain all moneys, if any, paid by Tenant to Landlord, whether as advance Rent, security or otherwise, but
such moneys shall be credited by Landlord against any Rent due from Tenant at the time of such termination or re-reentry, or at
Landlord’s option, against any damages payable by Tenant under this Lease or pursuant to law.

 

14.13      In
the event of any termination of this Lease under the provisions of Article 14 or in the event that Landlord shall re-enter the
Demised Premises lawfully or in the event of the termination of this Lease (or of re-entry) by or under any summary dispossess
or other proceeding or action or any provision of law, Tenant will pay to Landlord as damages, at the sole election of Landlord,
either:

 

(a)          a
sum which at the time of such termination of this Lease or at the time of any such re-entry by Landlord, as the case may be, is
equal to the excess, if any, of (i) the aggregate of all Rent which would have been payable hereunder by Tenant had this Lease
not so terminated for the period commencing with such earlier termination of this Lease or the date of any such re-entry, as the
case may be, and ending with the date hereinbefore set for the expiration of the full term hereby granted discounted to present
value as of the date of the Lease termination using a discount rate of four (4%) percent per annum, over (ii) the aggregate of
all Rent of the Demised Premises for the same period based upon the then local market rental value of the Demised Premise discounted
to present value as of the date of the Lease termination using a discount rate of four (4%) percent per annum. Landlord shall also
be entitled to recover the reasonable value of restoring the Demised Premises and reletting same (including brokers’ commissions)
as an element of damage; or

 

(b)          sums
equal to the aggregate of all Rent which would have been payable by Tenant had this Lease not so terminated, or had Landlord not
so re-entered the Demised Premises, payable upon the due dates specified herein following such termination of such re-entry and
until the date hereinbefore set for the expiration of the full term hereby granted; provided, however, that if Landlord shall re-let
all or part of the Demised Premises for all or any part of said period, Landlord shall credit Tenant with the net rents received
by Landlord from such re-letting, such net rents to be determined by first deducting from the gross rents as and when received
by Landlord all reasonable attorneys’ fees and costs incurred in terminating this Lease and re-entering the Demised Premises
and of securing possession thereof, as well as the reasonable expenses of re-letting, including altering and preparing the Demised
Premises for new tenants, brokers’ commissions and all other similar or dissimilar expenses properly chargeable against the
Demised Premises and the rental therefrom in connection with such re-letting, it being understood that any such re-letting may
be for a period equal to or shorter or longer than the remaining term of this Lease; provided, further, that (i) in no event shall
Tenant be entitled to receive any excess of such net rents over the sums payable by Tenant to Landlord hereunder, (ii) in no event
shall Tenant be entitled in any suit for the collection of damages pursuant to this subsection (b) to a credit in respect of any
net rents from a re-letting except to the extent that such net rents are actually received by Landlord prior to the commencement
of such suit, and (iii) if the Demised Premises or any part thereof should be re-let in combination with other space, then proper
apportionment on a square foot area basis shall be made of the rent received from such re-letting and of the expenses of re-letting.
Suit or suits for the recovery of such damages, or any installments thereof, may be brought by Landlord from time to time at its
election, and nothing contained herein shall be deemed to require Landlord to postpone suit until the date when the term of this
Lease would have expired if it had not been terminated under the provisions of Article 14, or under any provision of law, or had
Landlord not re-entered the Demised Premises.

 

    	 	25	 

     

    

 

Nothing herein contained
shall be construed as limiting or precluding the recovery by Landlord against Tenant of any sums or damages to which, in addition
to the damages particularly provided above, Landlord may lawfully be entitled by reason of any default hereunder on the part of
Tenant.

 

14.14      Upon
entry of a final judgment for possession after any default by Tenant, and until the actual taking of physical possession of the
Demised Premises by the Landlord, without limiting Tenant’s obligations under this Lease, and in addition to all other obligations
under this Lease, the Tenant shall: (i) remain fully responsible to maintain the Demised Premises in the condition and state of
repair required by this Lease; (ii) maintain all insurance coverages required by this Lease and indemnify Landlord against all
claims for personal injury and property damage relating to or arising out of any occurrence at the Demised Premises and perform
all other indemnification obligations under this Lease; and (iii) allow Landlord to immediately inspect all areas of the Demised
Premises (without any obligation on Landlord’s part to do so) and reimburse the Landlord for the cost of any repairs reasonably
deemed necessary by the Landlord to cure any unsafe or unlawful conditions.

 

		15.	Landlord’s Access to Demised Premises:

15.1        Landlord
and its representatives may enter the Demised Premises upon twenty-four (24) hours prior notice (except in case of emergency,
when no prior notice shall be required) for the purpose of inspecting the same and, if Landlord so elects, but without any obligation
so to do, for the purpose of making any necessary repairs to the Demised Premises and performing any work therein. Landlord will
exercise its rights hereunder in a commercially reasonable manner so as to minimize interference with Tenant’s business
operations, but nothing herein shall require the Landlord to schedule all work during non-business hours and to thereby incur
overtime or similar extra charges.

 

15.2        Landlord may
enter and exhibit the Demised Premises during usual business hours upon twenty-four (24) hours prior notice for Landlord’s
purposes, including but not limited to, inspecting the Demised Premises or showing the Demised Premises to prospective mortgagees,
purchasers, lessees or brokers. During the final twelve (12) months of the term, Landlord may also display the usual “To
Let” or similar signs on the Demised Premises. Tenant agrees that such signs may remain unmolested upon the Landlord’s
Premises.

 

		16	Hold Harmless:

16.1        This
Lease is made upon the express covenant and condition that Tenant shall keep, save and hold Landlord harmless and free from all
liability, penalties, losses, damages, costs, expenses, causes of action, claims and/or judgments arising by reason of any injury
or damage to any person or persons, or property, of any kind whatsoever, and to whomsoever belonging, from any cause or causes
whatsoever and whether arising from or by reason of any existing or future condition, default, matter, or thing in or about the
Demised Premises, including, without limitation, damage from water and/or steam seepage or leakage in or into the Demised Premises,
whether or not arising out of Landlord’s acts or failure to act, except if caused by Landlord’s (or its employees’,
agents’ or contractors”) negligence or intentional acts or omissions, or any default by Landlord hereunder.

 

16.2        Tenant
agrees to and shall save, hold and keep harmless and indemnify the Landlord from and for any and all payments, expenses, costs,
reasonable attorney’s fees claims and liability for losses or damage to property or injuries to persons occasioned wholly
or in part by or resulting from any willful or negligent acts or omissions or default hereunder by the Tenant or the Tenant’s
agents, employees, guests, licensees, invitees, subtenants, assignees or successors, or for any cause or reason whatsoever arising
out of or by reason of the use or occupancy of the Demised Premises by the Tenant, its sublessees and assignees.

 

    	 	26	 

     

    

 

16.3        Without
limiting the foregoing, Tenant agrees that if Landlord is involuntarily made a party defendant to any litigation concerning this
Lease or the Landlord’s Premises relating to any alleged act or omission of Tenant, then Tenant shall hold Landlord harmless
from all liability, costs and expenses by reason thereof.

 

		17.	Assignment:

17.1        Tenant
shall neither voluntarily, nor by operation of law, assign, transfer, mortgage, pledge, hypothecate or encumber this Lease or
any interest therein, and shall not sublet the said Demised Premises or any part thereof, or any right or privilege appurtenant
thereto, or allow any other person (the employees, agents, servants and invitees of Tenant excepted) to occupy or use the said
Demised Premises, or any portion thereof, without first (a) obtaining the written consent of Landlord and (b) providing Landlord
with the written consent of the Guarantor to such a transfer, assignment or sublease agreeing that the Guaranty shall continue
in full force and effect after the transfer, assignment or sublease takes effect, or, if the Guarantor is replaced by a substitute
Guarantor in compliance with the terms of the Guaranty annexed as Schedule E, providing the written agreement of the substitute
Guarantor to continue the Guaranty in full force and effect after the transfer, assignment or sublease takes effect. If Tenant
is a corporation or partnership, any transfer, legal or equitable, of the stock of said corporation or of any partnership interest
which, together with any and all prior such transfers shall constitute a change in excess of fifty (50%) percent or more of the
legal or equitable ownership of the corporation or partnership from the date of the signing of this Lease shall be deemed an assignment
for purposes of this Lease, although consent of Landlord need not be obtained under the circumstances proved in Section 17.2.

 

17.2        Notwithstanding
the foregoing in Section 17.1, no Landlord consent shall be required: (a) for subleases, licences or assignments to affiliates
or subsidiaries of the Tenant, provided that Tenant shall provide Landlord with fifteen (15) days advanced notice with sufficient
information to confirm that: (i) there shall be no change in the permitted use of the Demised Premises, (ii) Tenant and Guarantor
shall remain liable jointly and severally with the assignee/subleasee for payment and performance of all Tenant obligations under
this Lease, (iii) the proposed assignment/sublease shall not impair Landlord's security, (iv) the proposed assignee or
subtenant shall not introduce any new Hazardous Substances onto Landlord's Premises in violation of applicable laws which is inconsistent
with the existing operations of Tenant at the Landlord's Premises and (v) the Guarantor shall have provided Landlord with its written
consent to the transaction and shall have agreed that the Guaranty shall continue in full force and effect after the transfer,
assignment or sublease takes effect, or, if the Guarantor is replaced by a substitute Guarantor in compliance with the terms of
the Guaranty annexed as Schedule E, providing the written agreement of the substitute Guarantor to continue the Guaranty in full
force and effect after the transfer, assignment or sublease takes effect; (b) for any assignment to any successor to Tenant
by purchase (controlling stock sale or bulk sale of substantially all of Tenant’s assets), merger, consolidation or reorganization,
provided that Tenant shall provide Landlord with fifteen (15) days advanced notice (unless the provision of advance notice would
violate any security regulation or law, and in any such case the notice to Landlord shall be given on the earliest date after closing
when notice may be provided without violation of security regulation or law) with sufficient information to confirm that: (i) there
shall be no change in the permitted use of the Demised Premises, (ii)  Guarantor shall remain liable jointly and severally
with the assignee/subleasee for payment and performance of all Tenant obligations under this Lease, (iii) the proposed assignment/sublease
shall not impair Landlord's security, (iv) the proposed assignee or subtenant shall not introduce any new Hazardous Substances
onto Landlord's Premises in violation of applicable laws which is inconsistent with the existing operations of Tenant at the Landlord's
Premises and (v) Guarantor shall have provided to Landlord Guarantor’s written consent to such

 

    	 	27	 

     

    

 

transaction agreeing that the Guaranty
shall continue in full force and effect after the transfer, assignment or sublease takes effect, or, if the Guarantor is replaced
by a substitute Guarantor in compliance with the terms of the Guaranty annexed as Schedule E, providing the agreement of the substitute
Guarantor to continue the Guaranty in full force and effect after the transfer, assignment or sublease takes effect; and (c) if
Tenant becomes a publicly traded entity on a United States stock exchange.

 

17.3        Landlord
shall not unreasonably withhold consent to an assignment of the entire leasehold interest or to a sublease, providing that Landlord
determines in its reasonable discretion that such sublease or assignment does not lessen Landlord’s security (including the
security provided by the Guaranty), that the use of the Demised Premises shall comply with the terms of this Lease, that the Tenant
remains jointly and severally liable with assignee or sublessee for performance of all obligations imposed upon the Tenant under
this Lease, that the proposed assignee or sublessee is financially responsible and is sufficiently experienced to operate the business
from the Demised Premises successfully and in a manner which shall not detract from the value of the Demised Premises or any other
property owned or occupied by Landlord.

 

17.4        Consent
to one assignment, subletting, occupation or use by any other person shall not be deemed to be consent to any subsequent assignment,
subletting, occupation or use by another person. Consent to any such assignment or subletting shall in no way relieve Tenant or
the Guarantor of any liability under this Lease or the Guaranty.

 

17.5        Any
such assignment or subletting without such consent, if required hereunder, shall be void, and shall, at the option of the Landlord,
constitute a default under the terms of this Lease. Landlord shall not be obligated to consider and respond to any request for
consent under this paragraph unless such request is in writing, contains a full explanation of the proposal and provides sufficient
information about the financial standing and experience of the proposed assignee or subtenant for Landlord to make an informed
judgment.

 

17.6        Tenant
acknowledges that, unless it is determined that Landlord acted in bad faith, Tenant’s sole remedy with respect to any assertion
that Landlord’s failure to consent to any assignment or sublet is unreasonable shall be the remedy of specific performance
and Tenant shall have no damage claim or further claim of any nature or cause of action against Landlord as a result of Landlord’s
actions in refusing to consent, except that Tenant shall be entitled to assert a claim for legal fees and costs if the Tenant is
the prevailing party in any such action, and if the Court determines that Landlord's bad faith necessitated the filing of
such an action. Further, Landlord consents to the institution of expedited, summary proceedings in the Superior Court of New Jersey
by the Tenant in any action under this Section 17.6 and waives any objection to a hearing on the issue of the reasonableness of
its actions regarding a consent to assignment or sublet within fifteen (15) business days of the service and filing of such an
action by the Tenant.

 

17.7        In
the event of any approved assignment or sublease (excluding any assignment, license or sublease within the scope of Section 17.2),
fifty (50%) percent of all rents or other payments received by Tenant in excess of the payments due from Tenant to Landlord pursuant
to this Lease (after recoupment by Tenant of its reasonable transaction costs and the unamortized cost of any leashold improvements
transferred to the assignee or subtenant) shall be paid to Landlord as Additional Rent. On demand, any assignee or subtenant shall
make payments directly to Landlord without, however, creating a direct Landlord-Tenant relation between them or releasing Tenant
under this Lease.

 

17.8        In
the event that request is made for the Landlord’s consent to a sublease or assignment hereunder, Tenant shall pay Landlord’s
reasonable attorneys’ fees incurred in connection with the processing of documents necessary to giving of such consent. Tenant
shall also

 

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pay Landlord’s reasonable attorneys’
fees for similar reviews, such as, without limitation, proposed waiver agreements in favor of Tenant’s lenders, proposed
consents to subleases and the like.

 

		18.	Condemnation:

18.1        This
Lease and the term hereof shall terminate: (1) if the entire Demised Premises shall be taken by condemnation, or (2) at the option
of Tenant (exercisable by notice given to Landlord within thirty (30) days after the date of any such taking), if a material part
of the Demised Premises shall be taken in any condemnation proceeding(s), or so much of the parking area as shall leave Tenant
with fewer than 125 parking spaces has been taken and Landlord has not provided replacement spaces for the exclusive use of Tenant
that are comparable and located within reasonable proximity to the Demised Premises; or (3) at the option of Landlord (exercisable
by notice given to Tenant within thirty (30) days after the date of taking) if more than fifteen (15%) per cent of the Landlord’s
Premises shall be taken by condemnation. A taking of a “material part” of the Demised Premises shall mean the condemnation
of so much of the Demised Premises as shall materially and adversely prevent Tenant from operating its business in the Demised
Premises after restoration of the Building to a complete architectural unit.

 

18.2        Upon
the termination of this Lease in accordance with this Article, Rent shall be adjusted as of such termination. The entire condemnation
award shall be the sole and exclusive property of Landlord and shall be payable solely to Landlord except any allocations or awards
for Tenant’s trade fixtures and moving expenses. Tenant shall not make any claim in any condemnation proceeding for the value
of the unexpired portion of the Lease or the term hereof, and waives all right thereto.

 

18.3        In
the event that any portion of the Demised Premises is taken in condemnation and if this Lease is not terminated, then this Lease
shall remain in full force and effect as to such remaining portion, except that from and after the effective date of any such taking,
Tenant shall be entitled to an equitable reduction in the Fixed and Supplemental Rent required to be paid hereunder in accordance
with any reduction in square foot area of the Demised Premises caused by such taking. Landlord shall promptly restore the portion
of the Demised Premises remaining after such taking to a complete architectural unit. Any restoration by Landlord shall be limited
to the basic building structure as demised by Landlord to Tenant as of the Commencement Date.

 

18.4        In
the event this Lease is not terminated as aforesaid and Landlord does not restore the Demised Premises within a period of ninety
(90) working days after the date of taking, then and in that event, Tenant may, as its sole remedy, have the right to terminate
this Lease by notice in writing delivered to Landlord prior to completion of such restoration.

 

18.5        Provided
Tenant’s facilities are not materially and adversely affected and the size of the Demised Premises is not reduced to an extent
that materially impacts Tenant’s use and enjoyment of the Demised Premises, Landlord shall have the right to install, maintain
and alter or relocate within the Demised Premises any gas, water, electric or sewer lines which may be necessary to service the
Demised Premises; provided that to the extent reasonably practical same shall be located above existing drop ceilings or behind
walls.

 

		19.	Fire or Casualty Loss:

19.1        If
all or part of the Demised Premises is damaged or destroyed by fire or other casualty the cost of which to repair is reasonably
determined by the Landlord to exceed Twenty-Five Thousand and 00/100 ($25,000.00) Dollars, this Lease and all of its terms, covenants
and conditions shall, subject to the provisions hereinafter set forth, continue in full force and effect, and the obligations
of the Landlord and the Tenant shall be as provided in this Article 19. In the case of a fire or casualty loss the cost of which
to repair is reasonably determined by the Landlord to be equal to or

 

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less than Twenty-Five Thousand and 00/100
($25,000.00) Dollars, then the provisions of Articles 4 and/or 5 of this Lease shall control the responsibility of Landlord and
Tenant for the completion of repairs and replacements, but all fire and casualty insurance proceeds, if any, shall be utilized
to reimburse the respective parties for their costs of repair, with any excess to belong to the Landlord.

 

A.           In
the event that the damage to the Demised Premises is so extensive as to amount practically to the total destruction of the Demised
Premises, then unless the Landlord serves notice upon Tenant within sixty (60) days of the casualty loss that Landlord can and
will restore the Demised Premises within not more than twelve (12) months after the date of the loss, either party shall have the
right to terminate this Lease, in which event, this Lease shall cease and the Rent shall be apportioned to the time of the destruction.
For the purposes of this paragraph, damage or destruction rendering fifteen (15%) percent or more of the Demised Premises unusable
shall be deemed total destruction.

 

B.           In
the event that the Demised Premises is injured, but not so destroyed (as set forth in Paragraph A immediately above) as to terminate
the Lease, or Landlord serves notice that it can and will restore the Demised Premises within the time specified in Paragraph A,
or neither party elects to terminate as provided for in Paragraph A above, then, provided that the term of this Lease shall have
at least two (2) years to run, and that applicable laws shall permit, then, and in those events, the Landlord shall repair and
rebuild the Demised Premises with reasonable diligence and in any event within not more than twelve (12) months from the date of
the casualty loss.

 

19.2        To
the extent that the loss or destruction of the Demised Premises so substantially interferes with the operation of the Tenant’s
business, that Tenant is required to and actually does stop using all or any portion of the Demised Premises, the Fixed Rent and
Supplemental Rent allocable to any such portion that Tenant stops using shall be abated from the date of such closing to the date
the damage shall have been substantially repaired so as to enable the Tenant to again use such portion.

 

19.3        Tenant
acknowledges and agrees that Landlord will not carry insurance of any kind on Tenant’s fixtures, furniture, furnishings,
trade fixtures, equipment, improvements, or appurtenances removable by Tenant under the provisions of this Lease, and that Landlord
shall not be obligated to repair any damage thereto or replace the same.

 

		20.	Estoppel Certificate:

20.1        Either
party hereto, and/or its successors in interest, shall at any time and from time to time, forthwith upon request from the other
party and/or its successor in interest, execute, acknowledge and deliver a statement in writing (a) certifying that this Lease
is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this
Lease as so modified is in full force and effect), and the date to which the Rent and other charges are paid in advance, if any,
and (b) acknowledging that there are not, to such party’s knowledge, any uncured defaults on the part of either party hereunder,
or specifying such defaults if any are claimed, and (c) setting forth the date of commencement of Rents and expiration of the
term hereof. Any such statement may be relied upon by the prospective purchaser or encumbrancer of all or any portion of the real
property of which the Demised Premises are a part, or other interested party.

 

		21.	Signage

21.1        Under
no circumstances shall Tenant place or erect, or allow to be placed, or erected, a sign of any nature whatsoever upon any portion
of the building owned by Landlord, and Landlord will not consent to or permit any such signs. Tenant shall be permitted to place
signage on the existing monument sign subject to prior written approval from Landlord in connection with any proposed sign, its
location, and its manner of installation. Ground signs which are

 

    	 	30	 

     

    

 

similar to existing ground signs will be
permitted subject to prior written approval from Landlord in connection with any proposed sign, its location, and its manner of
installation. Landlord may remove any signs installed by Tenant which are in violation of the provisions of this Article. In no
event shall any permitted sign be installed on the roof or above the parapet height of the building(s) at Landlord’s Premises.
Any sign which Tenant may be permitted to install on the Landlord’s Premises shall nonetheless conform to any and all requirements
of any governmental body of any nature whatsoever having jurisdiction thereover, notwithstanding Tenants’ having obtained
written consent from Landlord therefor. Tenant shall have the right, as the need may occur, to apply for any sign variances, at
its sole cost and expense, provided the Landlord shall have first approved the proposed sign. Landlord’s consent to signs
shall not be unreasonably withheld.

 

		22.	Brokerage Commission:

22.1        Landlord
and Tenant each warrant and represent one to another that neither has dealt with, employed or negotiated with any real estate broker,
salesman, agent or finder in connection with this Lease Agreement except Studley, Inc. (the “Broker”). Landlord agrees
to pay the commission due to the Broker pursuant to a separate agreement. Landlord shall indemnify, hold harmless and defend Tenant,
and Tenant shall indemnify, hold harmless and defend Landlord, from and against any claim or claims for broker or other commission
arising from or out of any breach of the foregoing representation and warranty by the respective indemnitors. The representations
and obligations contained in this paragraph shall survive the expiration or termination of this Lease.

 

		23.	Unavoidable Delays:

23.1        In
the event that Landlord shall be delayed or prevented from performing any of its obligations pursuant to the provisions of this
Lease Agreement or in the event Tenant is delayed or prevented from performing any of its obligations pursuant to the provisions
of this Lease Agreement, other than and excluding Tenant’s obligations for Rent, its insurance obligations, its obligations
regarding environmental matters and its obligations regarding the timely return of possession to Landlord upon any termination
of this Lease, due to governmental action, or lack thereof, or due to shortages of or unavailability of materials and/or supplies,
labor disputes, strikes, slow downs, job actions, picketing, secondary boycotts, fire or other casualty, delays in transportation,
acts of God, failure to comply or inability to comply with any orders or requests of any governmental agencies or authorities,
acts of declared or undeclared war, public disorder, riot or civil commotion, or by any other cause beyond the reasonable control
of such party, then such party shall in any or all such events be excused from its obligation to perform and comply with such
provisions of this Lease Agreement for a period of time commensurate with any delay so caused without any liability to the other
party therefor whatsoever and all time periods provided for herein for performance of any such obligations shall be extended accordingly.

 

		24	Subordination:

24.1        Tenant
covenants that its rights under this Lease Agreement are hereby and will be subordinate to the operation and effect of any mortgage
or mortgages now existing or hereafter placed upon the Landlord’s Premises without any further written document from Tenant.
However, Tenant shall, upon request by Landlord, execute such reasonable documents as may be required to effect such subordination
to the satisfaction of any such mortgagee.

 

24.2        Tenant
agrees not to unreasonably withhold consent to modifications hereof made by any reputable bona fide mortgage lending institution
provided that such requirements shall not increase Tenant’s financial obligations hereunder, or increase Tenant’s other
obligations hereunder or decrease Tenant’s rights hereunder by more than a de minimis extent.

 

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24.3        Tenant
shall, upon request of Landlord, furnish to Landlord at any time during the term, the most recent financial statement(s) of Tenant
for a period of up to two (2) years last past. If certified statements certified by a certified public accountant are available,
then certified statements will be provided by Tenant. All such statements, which are not included in public filings or otherwise
made public by Tenant shall be kept strictly confidential by Landlord and, if provided to an existing or prospective lender or
purchaser of Landlord’s Premises, Landlord shall obtain confidentiality agreements from such entities that are reasonably
acceptable to Tenant before providing copies of financial documents to such entities..

 

24.4        Tenant
covenants and agrees to attorn to any successor to Landlord’s interest in this Lease.

 

24.5        Landlord
agrees to obtain a subordination, attornment and non-disturbance agreement (a “SNDA”) from existing and future mortgagees
in the commercially reasonable standard form utilized by such mortgagees for the benefit of Tenant and to deliver same to Tenant
within a reasonable time (not to exceed 30 days) after execution of this Lease.

 

24.6        Landlord
and Tenant agree that this Lease any and all obligations of the parties hereunder are subject to and contingent upon Landlord obtaining
written approval from the Landlord’s first mortgage lender (“First Mortgagee Approval”). In the event Landlord
is unable to obtain the First Mortgagee Approval within thirty (30) calendar days from the date this Lease is fully executed by
both Landlord and Tenant, the Lease shall be null and void and of no force or effect unless the parties agree to extend the time
for satisfaction of this contingency. Upon satisfaction of the contingency the Landlord shall notify Tenant in writing and the
Lease Agreement shall thereupon be binding upon the parties and shall remain in full force and effect.

 

		25.	Limited Guaranty of Performance and Payment:

25.1        As
additional consideration for this Lease, the Tenant’s parent company, LVMH Moet Hennessy Louis Vuitton S.A. (the “Guarantor”),
shall provide to Landlord contemporaneously with the execution of this Lease an unconditional guaranty of payment and performance
of all of Tenant’s obligations hereunder subject to a maximum guaranty amount of Six Million and 00/100 Dollars ($6,000,000.00)
in the form annexed hereto as Schedule ”E”.

 

		26.	Landlord’s Power Generation Systems

26.1        Landlord
is hereby granted the exclusive right, but is not hereby obligated, to install and maintain, at its sole cost and expense, solar
energy and other renewable energy generation systems at the Demised Premises (collectively, “Landlord’s Power Generation
Systems”) including, but not limited to, a solar array located on the roof of the Building which may include, without limitation,
an integrated assembly of photovoltaic panels, mounting assemblies, inverters, converters, meters, lighting fixtures, transformers,
ballasts, disconnects, combiners, switches, wiring devices and wiring to bring power from the rooftop arrays to the Demised Premises,
meters, inverters, wiring, and any other property now or hereafter installed, owned, operated, or controlled by Landlord for the
purpose of, or incidental or useful to the generation and delivery to Tenant of electricity produced by the Landlord’s Power
Generation Systems (the “Landlord’s Electricity”) to the existing electrical systems serving the Demised Premises
(the “Electrical Interconnection Point”). The Landlord’s Power Generation Systems shall be solely owned by the
Landlord. The Landlord’s Power Generation Systems shall be installed, and shall at all times be maintained and operated
by the Landlord from the Landlord’s Premises, in such a way as to not cause any unreasonable interference with the operations
of the Tenant at the Demised Premises.

 

26.2        It
is anticipated that Landlord’s Electricity will not furnish the Tenant’s entire requirement for electricity and Tenant
shall at Tenant’s sole discretion supplement Landlord’s

 

    	 	32	 

     

    

 

Electricity by purchasing electricity from
its local public utility or from third party electricity suppliers authorized by the New Jersey Board of Public Utilities to sell
electrical energy to consumers and/or businesses within the Borough of Carlstadt, Bergen County, New Jersey (hereinafter, “Electric
Utility Providers”) in an amount equal to the difference between Landlord’s Electricity and the amount of electrical
energy used by Tenant at the Demised Premises (“Net Electricity”); provided that in all events Tenant shall first purchase
the total output of electrical energy produced by and available from the Landlord’s Power Generation Systems before purchasing
electrical energy from such Electric Utility Providers. Tenant shall not select an electrical utility or other electricity supplier
that requires, as part of their conditions of service, removal or discontinuance of the operation of the Landlord’s Power
Generation Systems or discontinuance of the purchase of electricity from Landlord in accordance with the terms of this Article
26. The Landlord’s Power Generation Systems shall be installed as parallel systems in combination with the existing electrical
power supply to the Demised Premises from Electric Utility Providers and shall connect to the Electrical Interconnection Point
in such a manner that Tenant will automatically draw from Landlord’s Electricity first and supplement whatever electric power
produced by the Solar Panel System or other Landlord Power Generation Systems with power from the existing electrical systems supplied
by Electric Utility Providers serving the Demised Premises. At times when the Landlord Power Generation System is not operating,
the Tenant will be able to automatically and without interruption draw full electric power requirements from the Electric Utility
Providers.

 

26.3        Landlord
shall sell to Tenant and Tenant shall purchase from Landlord all electrical energy (“Landlord’s Electricity”),
that is produced and delivered to the Demised Premises by the Landlord Power Generation Systems, including the Solar Panel System,
at the rate of $0.10 per kilowatt-hour on the Commencement Date of this Lease or such later date when a Landlord Power Generation
System is installed at the Landlord’s Premises and increasing by three (3%) percent per annum on the first day of each one
year anniversary of the initial date when Landlord’s Power Generation System commenced delivery of Landlord’s Electricity
to the Demised Premises through the expiration of the initial Term (“Initial Term Electric Rate”); provided that, in
no event shall the Initial Term Electric Rate exceed the rate at which Tenant could purchase electricity from Electric Utility
Providers. In the event Tenant exercises its right to renew this Lease in accordance with Section 41 hereof, Landlord may increase
the Initial Term Electric Rate for the renewal Term (the “Renewal Term Initial Rate”), at Landlord’s sole discretion,
upon notice to Tenant given no later than thirty (30) days following Landlord’s receipt of the Tenant’s renewal notice
and the Renewal Term Initial Rate shall increase at the rate of three (3%) percent for each lease year throughout the renewal Term;
provided that, in no event shall the Initial Term Electric Rate exceed the rate at which Tenant could purchase electricity from
Electric Utility Providers. Any change to the Initial Term Electric Rate hereunder shall be promptly documented by a confirmatory
writing executed by the authorized representatives of Landlord and Tenant. During the renewal Term, the Tenant’s obligation
to purchase Landlord’s Electricity is subject to the condition that the price per kilowatt-hour of Landlord’s Electricity
shall at the commencement of each Lease Year be equal to or less than the total price charged by Electric Utility Providers (as
hereinafter defined) for the supply and distribution of electricity to the Demised Premises inclusive of all taxes, charges and
fees charged in connection therewith. If during the renewal Term following an increase or proposed increase in the Initial Term
Electric Rate the Tenant obtains a firm written quote from an Electric Utility Provider proposing to sell Tenant electrical energy
at a lower total price than the price per kilowatt-hour then being charged by Landlord (“Competing Quote”), Tenant
may provide Landlord with a copy of the Competing Quote together with a request that Landlord match it. Within ten (10) days of
Landlord’s receipt of any such request, Landlord shall advise Tenant as to whether or not it will match the Competing Quote.
If Landlord elects not to match the Competing Quote, Tenant’s obligation to buy Landlord’s Electricity from Landlord
pursuant to the

 

    	 	33	 

     

    

 

terms hereof shall terminate effective
on the thirtieth (30) day following Landlord’s notice thereof to Tenant. If, at any time during the Term, Tenant is no longer
obligated to purchase or Landlord ceases to supply Landlord’s Electricity, Tenant shall be entitled to purchase all of its
electricity from Electric Utility Providers. However, notwithstanding said termination, Landlord’s rights under this Article
26 to maintain and access any of the Landlord’s Power Generation Systems through the Demised Premises for any purpose including,
but not limited to, the right to sell Landlord’s Electricity to other occupants of the Landlord’s Premises, to other
consumers of electricity or to utility providers and/or obtain and/or market RECS shall continue unaffected for the balance of
the Term.

 

26.4        Landlord
shall measure the actual amount of Landlord’s Electricity delivered to the Demised Premises by the Landlord’s Power
Generation Systems at the Electrical Interconnection Point utilizing a commercially available revenue grade interval data-recording
meter (the “Meter”). The Meter shall be installed and maintained at Landlord’s expense during the Term. Tenant
may request that Landlord test the Meter at any reasonable time during the Term if Tenant reasonably believes that the Meter is
inaccurate or defective. Tenant shall reimburse Landlord for the cost of any test performed at Tenant’s request unless such
testing reveals that the Meter is inaccurate or defective. In the event the Meter is found to be inaccurate or defective, Landlord
shall make necessary repairs or replacements of the Meter, at Landlord’s sole cost and expense, and Landlord shall not be
entitled to any reimbursement of the costs of the inspection that revealed the error in the Meter from Tenant. In addition, if
it is discovered that the Meter’s inaccuracy or defect has resulted in Landlord overbilling Tenant, the invoices shall be
adjusted retroactively from the date (or if the exact date is unknown then from the approximate date) that the inaccuracy commenced,
if known, and, if unknown, for the three month period preceding the Meter test date. Adjustments that benefit the Tenant will be
reflected on the next invoice following the date of determination of the inaccuracy. Adjustments that benefit the Landlord shall
be included on Landlord’s next invoice to the Tenant. Tenant will not tamper with the Meter or otherwise interfere with its
measurement of electricity provided by the Landlord’s Power Generation Systems.

 

26.5        Each
month during the Term, Landlord shall read the Meter to determine Tenant’s prior month’s usage of Landlord’s
Electricity and invoice Tenant therefor, together with any taxes and third party charges or fees thereon that may be lawfully levied
with respect to the purchase of electricity by Tenant from Landlord pursuant to the terms of this Article 26. The invoices shall
show total kilowatt-hours used by Tenant for the immediately preceding month multiplied by the applicable per kilowatt-hour rate
payable by Tenant hereunder. Tenant shall pay for Landlord’s Electricity within thirty (30) calendar days after service of
invoices. Tenant’s obligation to pay Landlord’s Electricity shall constitute Additional Rent and if Tenant fails to
timely pay the invoices, Landlord shall have the remedies available for non-payment of Additional Rent hereunder.

 

26.6        During the Term, Landlord shall be solely responsible for the installation, inspection, maintenance, repair, replacement and/or
relocation of the Landlord’s Power Generation Systems. Landlord shall have full access through the Demised Premises to the
roof of the Building and shall have reasonable access to other areas of the Demised Premises, in each case, on reasonable prior
notice, as reasonably necessary, for said purposes. In connection with any such access, Landlord shall use reasonable efforts to
minimize interference with Tenant’s use of the Demised Premises.

 

26.7        Tenant shall not install any structures or equipment on any part of the Demised Premises that obstruct or interfere with the Landlord’s
Power Generation Systems or that overshadow or shade rooftop or exterior solar arrays integral to Landlord’s Power Generation
Systems, nor shall Tenant otherwise unreasonably interfere with the operation of the Landlord Power Generation Systems and the
output of Landlord’s Electricity. Upon Landlord’s demand, Tenant shall cease all

 

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such activities which impair or reduce
the efficient operation of any of the Landlord’s Power Generation Systems or materially increase the cost to operate or maintain
any of the Landlord’s Power Generation Systems. If Tenant fails to cease prohibited activities after notice thereof by Landlord,
and such activities, in violation of this Section 26.7, result in the Solar Panel System producing less than the average output
on a kilowatt basis over the twelve (12) month period immediately preceding the commencement of the prohibited activities, Tenant
shall pay to Landlord as Additional Rent the difference between the amounts actually paid to Landlord for Landlord’s Electricity
and the amounts that would have been paid if the Solar Panel System had operated at expected capacity during the period after the
service of Landlord’s demand to cease such activities until the activities have ceased.

 

26.8        Landlord
will have sole ownership of any and all of the Landlord’s Power Generation Systems that may be installed by Landlord from
time to time during the Term hereof and of all renewable energy credits or certificates, including, without limitation, emission
reduction credits, investment credits, production tax credits, emission allowances, green tags, and tradable renewable credits
(hereinafter collectively, “RECS”) and may it its sole discretion market these at any time. Any grant, rebate, incentive
payment or credit by any applicable utility, the Federal, State or Local Government or any other agency paid as a result of the
design, construction and operation of the Landlord’s Power Generation Systems shall be paid to, credited to and otherwise
inure to the exclusive benefit of Landlord. Tenant shall cooperate in good faith, at no cost or expense to Tenant, as reasonably
necessary to enable Landlord to obtain all available RECS, incentives and rebates, including assignment to Landlord of any incentive
received by Tenant in connection with and/or as a result of the Landlord’s Power Generation Systems being on the Demised
Premises and, in connection therewith, shall within ten (10) days of Landlord’s demand, respond to and/or sign such authorizations
and/or other documentation as is reasonably required by Landlord to obtain any rebate or subsidy available to it under applicable
law.

 

26.9        Landlord
may permanently discontinue operation of Landlord’s Power Generation Systems and shall have no further obligation to sell
Tenant Landlord’s Electricity in accordance with the terms hereof (i) if Landlord determines in good faith that the continued
operation of the Solar Panel System is no longer economically beneficial because of changed circumstances or regulatory requirements,
or presents a danger to persons or property; (ii) if the renovation, damage, destruction or ceasing of operations at the Demised
Premises eliminates or materially reduces Tenant’s need for Landlord’s Electricity so as to make continued operation
uneconomical in Landlord’s good faith judgment; (iv) if a Landlord’s Power Generation System is damaged or impaired
and Landlord determines that it is not economical to repair or rebuild; or if (v) Landlord is unable to legally or practically
continue the sale of Landlord’s Electricity to Tenant (hereinafter collectively, “Termination Events”); provided
that Landlord shall not so discontinue operation of Landlord’s Power Generation Systems unless and until Tenant is able to
obtain all of its required electricity directly from Electric Utility Providers and, in the event alterations to the Demised Premises
or additional equipment is required therefor, such alterations shall be performed and such equipment shall be purchased at Landlord’s
sole cost and expense. If Landlord elects in its sole discretion not to terminate the sale and purchase of Landlord’s Electricity
following one or more Termination Events, Landlord and/or Tenant, as applicable, shall diligently pursue the completion of any
renovation and/or repair work that would permit the recommencement of the sale and purchase of Landlord’s Electricity in
accordance with the terms hereof, at Landlord’s sole cost and expense.

 

26.10      The
rights and obligations of Landlord with respect to Landlord’s Electricity, the Landlord’s Power Generation Systems
or the RECS may be assigned by Landlord to any successor owner and to any mortgagee of the Landlord’s Premises without the
need for Tenant’s consent and, in furtherance thereof, Tenant shall, within ten (10) days of Landlord’s demand, sign
such documentation as Landlord may reasonable request to effectuate the assignment or sale of the

 

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Landlord’s Power Generation Systems,
the RECS or Landlord’s right to sell Tenant Landlord’s Electricity in accordance with the terms hereof.

 

26.11      The
Landlord shall indemnify and hold Tenant harmless from and against costs and expenses resulting from: (a) any repairs to, direct
or indirect harm to, or loss of Tenant’s personal property or fixtures on the Demised Premises to the extent caused by the
negligence, recklessness, willful misconduct or breach of the terms of this Article 26 by Landlord or any of its contractors, agents,
employees, partners, owners, subsidiaries, affiliates or invitees and not covered by Tenant’s insurance (without giving effect
to any subrogation against Landlord); and (b) any loss, damage, expense or liability resulting from injury to or death of persons
to the extent caused by Landlord or any of Landlord’s contractor’s, agents, employees, partners, partners, owners,
subsidiaries, affiliates or invitees, except if caused by or resulting from the Tenant’s willful malfeasance or negligent
acts.

 

26.12      Landlord
and Tenant acknowledge and agree that Landlord’s Power Generation Systems are intermittent generation facilities and will
not provide Tenant with an uninterrupted supply of electricity. Nothing contained in this Article 6 shall be deemed to provide
any warranty or guarantee for any specific level or quantity of power produced by the Landlord’s Power Generation Systems
at any given time or over the course of the Term. If Landlord’s Electricity is interrupted, Landlord will make commercially
reasonable efforts to restore Landlord’s Electricity in a timely manner.

 

26.13      Landlord
shall have the right to publish information about the installation and usage of the Landlord Power Generation Systems through any
means, including press releases, published material and internet.

 

		27.	Waiver as to Insured Losses:

27.1        Tenant
and Landlord each waive all rights of recovery against the other or their respective agents, employees or other representatives,
for any loss, damage or injury of any nature whatsoever to property or persons for which the Tenant or Landlord is insured, to
the extent of insurance proceeds actually received on account of such loss, damage or injury.

 

		28	Environmental Covenants:

Tenant represents,
covenants, promises and agrees that:

 

28.1        Tenant
agrees to take all requisite action to insure Tenant’s full compliance, at Tenant’s sole expense, with all applicable
federal, state and local environmental laws, including, but not limited to, (i) the “Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended, 42 U.S.C. 9601 et seq. (“CERCLA”); (ii) the Industrial
Site Recovery Act, N.J.S.A. 13:1K-6 et seq. (and including the Hazardous Discharge Site Remediation Site Act, N.J.S.A.
58:10B-1 et seq.) (collectively “ISRA”); (iii) the New Jersey Spill Compensation and Control Act, as amended,
N.J.S.A. 58:10-23.11 et seq. (“Spill Act”); (iv) the Solid Waste Management Act, N.J.S.A. 13:1E-1
et seq. (“SWMA”); (v) the Resource Conservation and Recovery Act, as amended, 42 U.S.C. 6901 et seq.
(“RCRA”); (vi) the Occupational Safety and Health Act of 1970, as amended, 29 U.S.C. § 651 et seq.
(“OSHA”); (vii) the New Jersey Underground Storage of Hazardous Substances Act, as amended, N.J.S.A. 58:10A-21
et seq. (the “Tank Act”); (viii) the New Jersey Water Pollution Control Act, as amended, N.J.S.A. 58:10A-1
et seq. (“WPCA”); (ix) the New Jersey Air Pollution Control Act, as amended, N.J.S.A. 26:2C-1 et seq.
(“APCA”); and/or the rules and regulations promulgated thereunder and all federal and state laws relating to pollution
of the environment, hazardous substances, air pollution, soil, hazardous waste, toxic substances, noise control, sewerage and wastewater
treatment, solid waste, tidelands, navigable waters, water supply, quality and pollution, environmental rights, storm water, groundwater
and waters of the United States and of New Jersey (herein referred to as “Environmental Laws”).

 

    	 	36	 

     

    

 

28.2        Tenant
shall not use or suffer or permit the use of the Demised Premises to refine, produce, store, handle, generate, manufacture, heat,
dispose of, transfer, process or transport “Hazardous Substances”, as herein defined. The term “Hazardous Substances”
shall be defined for purposes of this Lease as any hazardous chemical, hazardous or toxic substance, hazardous waste, hazardous
material or similar material or substance as so defined in or regulated under any Environmental Laws, including without limitation,
CERCLA, ISRA, Spill Act, RCRA, OSHA, the Tank Act. “Hazardous Substances” shall not be deemed to include food items
consumed by employees at the Demised Premises or cleaning products typically sold for home or office use which are stored in compliance
with Environmental Laws in original containers and are used for such purposes within the Demised Premises.

 

28.3        Tenant
shall not use or otherwise operate on the Demised Premises as a “Major Facility”, as such term is defined in N.J.S.A.
58:10-23.11b(1), or any rule or regulation promulgated thereunder.

 

28.4        In
connection with the Tenant’s occupancy of the Demised Premises or operations within the Landlord’s Premises, if Tenant
or any of Tenant's agents, servants, contractors, employees, invitees, sub-tenants or assignees cause, suffer or permit any intentional
or unintentional action or omission resulting in the releasing, spilling, leaking, pumping, pouring, emitting, emptying or dumping
of "Hazardous Substances" at the Landlord’s Premises without having obtained a permit issued by the appropriate
governmental authorities, Tenant promptly shall at Tenant's own expense, prepare and submit the required plans and carry out the
approved plans in accordance with the provisions of all Environmental Laws, and all other applicable federal, state or local laws,
rules or regulations, using contractors reasonably satisfactory to Landlord, remedial investigation plans and remedial action plans
reasonably satisfactory to Landlord (Landlord’s consent not to be unreasonably withheld or delayed). Tenant shall (i) remediate
such discharge to the DEP unrestricted standard (with no requirement for Institutional or Engineering Controls as those terms are
defined under applicable Environmental Laws); (ii) comply with all Environmental Laws and other applicable federal, state or local
laws, rules or regulations regarding such discharge; and (iii) shall provide to Landlord copies of all correspondence, plans, reports
and other documents received from or submitted to the regulatory authorities having jurisdiction over such discharge and any required
remediation of such discharge.

 

28.5        No
lien has been attached, nor shall any lien be allowed to attach to any revenues or any real or personal property owned by Tenant
and located at the Demised Premises, pursuant to federal or state laws including, without limitation the Spill Act and/or CERCLA.

 

28.6        Tenant
will furnish the New Jersey Department of Environmental Protection (“DEP”) and/or Landlord with any information which
may be required by the Environmental Laws with respect to the occupancy of and operations at the Demised Premises, including information
required by ISRA due to applications submitted by the Landlord from time to time all at no cost or expense to Landlord.

 

28.7        In
the event that there shall be filed a lien resulting from the acts or omissions of Tenant or its agents, servants, contractors,
employees, invitees, sub-tenants or assignees against the Demised Premises or Tenants interest therein or Tenant’s property
thereon by DEP under the Spill Act or under CERCLA or under any other Environmental Law, Tenant shall within thirty (30) days from
the date the Tenant is given notice of such lien or within such shorter period of time in the event that the State of New Jersey
has commenced steps to cause a sale pursuant to the lien, either: (a) pay the claim and remove the lien; or (b) furnish (1) a bond
satisfactory to Landlord and/or DEP in the amount of the claim out of which the lien arises, (2) a cash deposit in the amount of
the claim out of which the lien arises, or (3) other security reasonably satisfactory to Landlord in an amount sufficient to discharge
the claim out of which the lien arises.

 

    	 	37	 

     

    

 

28.8        Tenant
shall not use or cause the Demised Premises to be used as an “industrial establishment”, as such term is defined in
ISRA without the prior written consent of Landlord.

 

28.9        Tenant
shall not install any underground storage tanks within or under the Landlord’s Premises.

 

28.10      Landlord
represents, covenants, promises and agrees that it knows of no environmental conditions affecting the Landlord’s Premises
which are not referenced in the Phase I Environmental Report dated January 29, 2003 prepared by EcolSciences, Inc. a true and complete
copy of which has been provided to the Tenant; the said Phase I Environmental Report dated January 29, 2003 is the most recent
Environmental Report known to Landlord concerning the Landlord’s Premises; the Landlord knows of no environmental air quality
conditions affecting the Demised Premises and has not received any complaints or claims alleging the existence of any such conditions;
and the Landlord knows of no claims that have been asserted against the Landlord’s Premises alleging the presence of Hazardous
Substances in, on, or about the Landlord’s Premises.

 

		29.	Auction Sales:

29.1        Tenant
shall not conduct or permit to be conducted any sale by auction or otherwise in, upon or from the Demised Premises whether said
sale be voluntary, involuntary, pursuant to any assignment for the payment of creditors or pursuant to any bankruptcy or other
insolvency proceeding.

 

		30.	Holding Over:

30.1        If
Tenant remains in possession of the Demised Premises or any part thereof after the expiration of the term hereof without the express
written consent of Landlord, such occupancy shall at Landlord’s option constitute a trespass entitling Landlord to obtain
immediate possession of the Demised Premises in addition to Landlord’s rights to recover damages under Section 30.2.

 

30.2        In
the event Tenant shall remain in possession of the Demised Premises following the expiration of the Term, without Landlord’s
written permission, all terms of this Lease shall, as applicable, continue to govern such possession, except that Tenant shall
have the status of a tenant at sufferance and shall pay to Landlord, as damages for such wrongful holdover, for each month or part
thereof during which said wrongful holdover continues, one hundred fifty percent (150%) of the Fixed Rent then in effect hereunder,
plus all Additional Rent.

 

		31.	Quiet Possession:

31.1        So
long as this Lease is in full force and effect, Tenant shall have quiet possession of the Demised Premises for the entire term
hereof, subject to all the provisions of this Lease.

 

		32.	Sale of the Landlord’s Premises:

32.1        The
term “Landlord” as used in this Lease means only the owner or landlord for the time being of the land and building
of which the Demised Premises form a part, so that in the event of sale or sales of said land and premises the Landlord shall
be and hereby is entirely freed and relieved of all covenants and obligations of the Landlord hereunder accruing from and after
such sale and it shall be deemed and construed without further agreement between the parties or their successors in interest,
or between the parties and the purchaser at any such sale, that the purchaser has assumed and agreed to carry out any and all
obligations of the Landlord hereunder.

 

    	 	38	 

     

    

 

		33.	Notices:

33.1        All
notices and demands which are contemplated or permitted to be given by either party shall be in writing and shall be served upon
the parties at the following addresses:

 

LANDLORD:

 

400 COMMERCE BOULEVARD, LLC

Attn: Edward Russo

570 Commerce Boulevard

Carlstadt, N.J. 07072

 

WITH A COPY TO:

 

Richard G. Berger, Esq.

Russo Development, LLC

570 Commerce Boulevard

Carlstadt, N.J. 07072

 

TENANT:

 

The Donna Karan Company, LLC

Attn: Chief Financial Officer

240 West 40th Street

New York, NY 10018

WITH A COPY TO:

The Donna Karan Company LLC

Attn: Legal Department - General Counsel

240 West 40th Street

New York, New York 10018

 

AND A COPY TO:

Stern Tannenbaum & Bell LLP

Attn: Stewart J. Stern, Esq.

380 Lexington Avenue

New York, New York 10168

 

Notices shall be served
either (1) by personal service, or (2) by nationally-recognized overnight courier, such as Federal Express. Personal service shall
be effective at the time of delivery in person or one day after dispatch if delivered by overnight courier service to the addressee.
Either party may, from time to time, designate a different address by giving written notice to the other designating such address.

 

		34.	Parties Bound:

34.1        The
covenants, agreements, terms, provisions and conditions of this Lease shall bind and benefit the respective successors, assigns
and legal representatives of the parties hereto with the same effect as if mentioned in each instance where a party hereto is
named or referred to, except that no violation of the provisions of Article 17 hereof shall operate to vest any rights in any

 

    	 	39	 

     

    

 

successor, assignee or legal representative
of Tenant and that the provisions of this Article 34 shall not be construed as modifying the conditions of limitation contained
in Article 17 hereof. It is understood and agreed, however, that the covenants and obligations on the part of Landlord under this
Lease accruing from and after a transfer of this Lease shall not be binding upon Landlord herein named with respect to any period
subsequent to the transfer of its interest in the Demised Premises, that in the event of such transfer said covenants and obligations
shall thereafter be binding upon each transferee of such interest of Landlord herein named, but only with respect to the period
ending with a subsequent transfer of such interest, and that a lease of the entire interest shall be deemed a transfer within the
meaning of this Article

 

		35.	Abandoned Personal Property:

35.1        Any
personal property, which shall remain in the Demised Premises or any part thereof after the expiration or termination of the term
of this Lease shall be deemed to have been abandoned, and either may be retained by Landlord as its property or may be disposed
of in such manner as Landlord may see fit at the sole cost and expense of Tenant seven (7) days after written notice to Tenant.
If such personal property or any part thereof shall be sold by Landlord, Landlord may receive and retain the proceeds of such sale
as Landlord’s property without affecting Landlord’s rights against Tenant or resulting in any credit to Tenant from
damages otherwise recoverable by Landlord.

 

		36.	Financial Information:

36.1        In
the event at any time during the term, the Landlord processes for a mortgage on the Landlord’s Premises, or desires financial
information for other reasonable purposes, Tenant shall, provide up to five years of its most recent financial statements (certified
if available, and if not, then certified to be true and correct by Tenant’s chief financial officer), and through its banking
representative(s), make reasonable financial information concerning the Tenant, available to the Landlord and, if applicable, the
credit representative of the Landlord’s mortgage lender. Such information shall be treated as confidential by the Landlord
and, if applicable, the Landlord’s mortgagee.

 

		37.	Letter of Acceptance:

37.1        Upon
the Tenant’s accepting the Demised Premises and entering into possession, after Substantial Completion, as defined in Article
40, of the Landlord’s improvements pursuant to the terms and conditions hereof, the Tenant covenants and agrees that it will
furnish to the Landlord a written statement that it accepts the Demised Premises, subject to latent defects and Punch List Items,
and subject to the terms and conditions of this Lease.

 

		38.	Miscellaneous Provisions:

38.1        This
Lease shall not be strictly construed against either Landlord or Tenant; the captions in this Lease are for convenience only and
are not a part of this Lease; except as otherwise expressly provided in this Lease and its Schedules and other attachments, the
singular includes the plural and the plural includes the singular; “or” is not exclusive; a reference to any laws includes
any amendment or supplement to such laws; a reference to a person or other entity includes its permitted successors and assigns;
accounting provisions have the meanings assigned to them by generally accepted accounting principles applied on a consistent basis
in the United States; the words “such as,” “include,” “includes” and “including”
are not limiting; except as specifically agreed upon in this Lease, any right may be exercised at any time and from time to time
and all obligations are

 

    	 	40	 

     

    

 

continuing obligations throughout the Term,
and in calculating any time period, the first day shall be excluded and the last day shall be included and all days are calendar
days unless otherwise specified.

 

38.2        This
Lease shall be construed and enforced according to the laws of the State of New Jersey.

 

38.3        If
more than one person or entity shall sign this Lease as Tenant, the obligations set forth herein shall be deemed joint and several
obligations of each such party.

 

38.4        If
any term or provision of this Lease, the deletion of which would not adversely affect the receipt of any material benefit by either
party hereunder, shall be held invalid or unenforceable to any extent, the remaining terms, conditions and covenants of this Lease
shall not be affected thereby, and each of said terms, covenants and conditions shall be valid and enforceable to the fullest extent
permitted by law.

 

38.5        Landlord
and Tenant each warrant to the other that all consents or approvals for the execution, delivery and performance of this Lease have
been obtained, that each has the right and authority to enter into and perform its covenants contained in this Lease, and that
this Lease is binding upon such Party in accordance with its terms.

 

38.6        The
provisions of this Lease which relate to periods subsequent to the expiration of the Term shall survive the expiration of the Term
for the period of time indicated in each such provision. In the event a specific time period is not indicated in a particular provision,
then the provision shall survive for an indefinite period of time.

 

38.7        This
Lease may not be altered, changed or amended, except by an instrument in writing executed by all parties hereto, and executed by,
or consented to in writing by the Guarantor.

 

38.8        The
terms and provisions of Schedules attached hereto are incorporated into and made a part of this Lease for all purposes.

 

38.9        This
Lease may be executed in any number of counterparts, all of which shall be considered one and the same Lease notwithstanding that
all parties hereto have not signed the same counterpart. The signature of any party to this Lease which is transmitted by facsimile
shall be valid for all purposes. Any party shall, however, deliver an original signature of this Lease to the other party upon
request.

 

38.10      This
Lease (including all schedules hereto) constitutes the entire agreement of the parties with respect to the subject matter hereof
and all prior and contemporaneous written and oral agreements are merged herein.

 

38.11      This
Lease and all documents relating thereto, specifically excluding the original Guaranty but including, without limitation, consents,
waivers and modifications which may hereafter be executed, financial and operating statements, certificates and other information
previously or hereafter furnished to Landlord, may be reproduced by Landlord by any digital, computer, photographic, photostatic,
microfilm, micro-card, miniature photographic or other similar process and Landlord may destroy any original document (“Master”)
so reproduced. Tenant agrees and stipulates that any such reproduction is an original and shall be admissible in evidence as the
Master in any judicial or administrative proceeding (whether or not the Master is in existence and whether or not such reproduction
was made or preserved by Landlord in the regular course of business) and any enlargement, facsimile or further reproduction of
such a reproduction shall be no less admissible.

 

38.12      Landlord
hereby expressly waives any and all rights granted by or under any present or future laws to distrain for rent, in arrears, in
advance or both, upon all goods, merchandise, removable equipment or other tangible personal property owned by Tenant which is
located at the Demised Premises, or to levy or seize any of the assets of Tenant without judicial order permitting such action
obtained on notice to Tenant as required by law.

 

    	 	41	 

     

    

 

38.13      Landlord
covenants that throughout the Term and the option renewal period, if exercised, it shall not lease space within Landlord’s
Premises to any pornographic or X-rated establishments nor for sale or display of pornographic material, or for live-nude or semi-nude
performances, nude modeling, rap sessions, or as a so-called 'rubber goods' store, or as a sex club of any sort, or as a massage
parlor, gambling or gaming establishment, medical or psychiatric offices or a medical care clinic, or any immoral or illegal purpose.

 

		39.	Rules and Regulations:

39.1        Tenant
shall comply with the Rules and Regulations as reasonably adopted, amended and repealed by the Landlord from time to time for the
use, operation and occupancy of the Landlord’s Premises. A copy of the Rules and Regulations currently in effect on the date
of this Lease is annexed hereto and incorporated herein by reference as Schedule “F.” A breach of the Rules and Regulations
shall be a breach of this Lease. Landlord shall give the Tenant notice of the future adoption, amendment or repeal of Rules and
Regulations, and same shall be binding upon Tenant and shall be deemed incorporated herein thirty (30) calendar days after service
upon the Tenant.

 

		40.	Allowance Improvements:

40.1        As
part of the Tenant’s Improvements, the Landlord shall provide to Tenant a monetary allowance in the amount of Two Hundred
Fifty Thousand and 00/100 Dollars ($250,000.00) (hereinafter referred to as the “Allowance Amount”) for the installation
of interior improvements in the Demised Premises including, but not limited to new carpet, paint, replacement of ceiling tiles,
office layout modifications, construction of a restroom on the second floor mezzanine and refurbishment of restrooms on the first
floor (the “Allowance Improvements”). The plans and specifications for the Allowance Improvements shall be completed
by the architectural staff of Landlord’s affiliate, Russo Development, LLC (“Russo Development”), with the consultation
of and approval of Tenant. Tenant shall review and consent to plans and specifications for the Allowance Improvements within twenty
(20) business days after submission for approval. Landlord and Tenant shall cooperate to insure that all plans and specifications
for the Allowance Improvements are completed and approved no later than December 1, 2011.

 

40.2        Tenant
understands and agrees that the Allowance Amount set forth in Section 40.1 of this Lease does not represent a guarantee, representation
or estimate of the total cost of the work for which allowances are granted. All work and materials
installed for the improvements paid for by the Allowance Amount (the “Allowance Improvements”) shall be performed by
the Landlord utilizing Russo Development as its Construction Manager at “Landlord’s Cost” as defined below; provided
that work in respect of Tenant Improvements not paid for from the Allowance Amount may, at Tenant’s option, be performed
by Tenant using a third party contractor (subject to Landlord’s reasonable approval of such contractor as herein provided).
Prior to commencement of each phase of Allowance Improvements, the Landlord shall provide the Tenant with a detailed breakdown
of the estimated cost (hereinafter referred to as a “Landlord Cost Breakdown”) plus a ten (10%) percent markup
for profit and a ten (10%) percent markup for overhead for all work done by Russo Development
and its affiliates directly, and five (5%) percent markup for profit and a five
(5%) percent markup for overhead for work subcontracted to unaffiliated contractors of Russo
Development, but supervised by Russo Development as the Landlord’s Construction Manager (collectively the “Landlord’s
Costs”);provided that, if Tenant elects to utilize a third party contractor for any Tenant’s Improvements not
paid for by the Allowance Amount, Landlord shall not be entitled to any profit, overhead or other payment in respect thereof.
The Landlord’s Costs shall be commercially reasonable and shall be negotiated by the Landlord and the Tenant in good faith.
The Landlord’s Costs shall not 

 

    	 	42	 

     

    

 

include
any overtime costs necessary to meet the Substantial Completion Date, unless such overtime is required due solely to changes in
the Allowance Improvements or the scheduling of the Allowance Improvements requested by Tenant. The parties shall agree upon the
Landlord’s Cost and the Tenant shall provide written approval of the Landlord’s Cost before the Landlord is obligated
to commence the applicable phase of the Allowance Improvements. All permit fees paid by the Landlord for the Allowance Improvements
shall be added to the Landlord’s Cost without markup for profit or overhead. All
design work completed by the Landlord’s or Russo Development’s consultants for the Allowance Work shall be added to
the Landlord’s Costs without markup for profit or overhead. All costs for
architectural design work completed by Russo Development’s in-house architectural staff will be completed at no cost to the
Tenant and will not be added to the Landlord’s Cost.

 

40.3        If
the aggregate Landlord’s Cost for completion of all of the Allowance Improvements exceeds the Allowance Amount provided for
in this Lease (such excess being referred to as the “Excess Landlord’s Cost”), the Tenant shall pay the Excess
Landlord’s Cost to Landlord within thirty (30) days after Substantial Completion of all Allowance Improvements. In the event
of Tenant’s default in this obligation, Landlord shall have all of the same remedies afforded under this Lease in the case
of a default in payment of Rent. Similarly, in the event that the Allowance Amount exceeds the Landlord’s Cost, then the
Landlord shall refund the balance due to the Tenant within thirty (30) days from Substantial Completion of the Allowance Improvements.

 

40.4        The
Allowance Improvements shall be deemed “Substantially Complete” and the “Substantial Completion Date” shall
be the date on which (a) the Russo Development’s architect has certified in a writing served upon Tenant that Landlord has
completed the Allowance Improvements, other than Punchlist Items (as defined below) and (b) Landlord has delivered to Tenant a
conditional or temporary occupancy certification from the New Jersey Meadowlands Commission and a conditional or temporary certificate
of occupancy from the Borough of Carlstadt allowing the Tenant to enter into possession of the Demised Premises subject only to
completion of Punch List Items (as hereinafter defined).

 

40.5        Not
less than five (5) business days prior to the Substantial Completion Date, Landlord shall furnish Tenant with a detailed punch
list of minor items, which will not be completed by the Substantial Completion Date and which will not materially or adversely
interfere with the Tenant’s use and occupancy of the Demised Premises for its normal business operations (the “Punch
List”). Tenant shall have the right to supplement the Punch List for a period of sixty (60) days after the Substantial
Completion Date. The Punch List shall not include the repair of any items that are damaged solely as a result of actions of Tenant,
its employees, agents, invitees or contractors. Landlord shall promptly after Substantial Completion complete the work on the Punch
List as soon as reasonably possible. Landlord and Tenant shall work together in good faith to prepare and agree upon the Punch
List; provided, however, in the event the parties cannot agree on any item to be included or not included on the Punch List within
ten (10) days of the identification of such item, then the determination of whether or not such item should be included in the
Punch List shall be made by an independent architect selected by mutual agreement of Landlord and Tenant or, if the parties cannot
agree on the selection of an architect, then the architect shall be assigned by the Assignment Judge of the Superior Court of New
Jersey in Bergen County. Work included on the Punch List shall be performed without unreasonably interfering with Tenant’s
business operations at the Demised Premises. Landlord agrees to diligently pursue completion of all items on the Punch List
within thirty (30) days after preparation of such Punch List or, if any such items cannot reasonably be expected to be corrected
within such thirty (30) day period, then Landlord shall commence such correction and diligently pursue it to completion in no event
later than one hundred twenty (120) days thereafter.         

 

    	 	43	 

     

    

 

40.6        Promptly
after agreement on the plans and specifications for the Allowance Improvements and receipt of all permits necessary for the construction
of the Allowance Improvements (which Landlord will file for promptly), Landlord shall commence performance thereof, shall diligently
and without delay prosecute such work to completion, and shall deliver the Demised Premises to Tenant with all Allowance Improvements
complete within three months after commencement of work (i.e., by May 1, 2012 if Landlord can commence work on January 1, 2012
or June 1, 2012 if Landlord can commence work on February 1, 2012), subject to extension for changes in the Allowance Improvements
requested by Tenant. The Allowance Improvements shall be performed in a good and workmanlike manner in accordance with the plans
and specifications agreed to by Landlord and Tenant and shall comply with all legal requirements.

 

		41.	Option to Renew:

41.1        Tenant
shall have the right to renew its lease for the Demised Premises for one (1) ten (10) year period by providing Landlord with written
notice not less than twelve (12) calendar months prior to the Termination Date, provided and on the condition that the Tenant delivers
the written consent of the Guarantor to the extension of the Term of the Lease with the notice of Tenant’s exercise of the
Option to Renew. TIME FOR NOTICE OF EXERCISE OF TENANT’S OPTION IS HEREBY DECLARED TO BE OF THE ESSENCE, and a failure to
provide timely notice shall operate as an irrevocable waiver of all rights under this Section 41.1.

 

41.2        The
initial base rent for the first year of renewal option period shall be the greater of: (i) the Fixed Rent set forth on Schedule
B-1 annexed hereto or made a part hereof; or (ii) ninety-five percent (95%) of the then-prevailing Fair Market Rental Rate (“FMRR”),
and such amount shall increase by 3% each year. The FMRR shall take into account all relevant factors, including without limitation,
the financial strength of the Tenant, and comparable leases (on the basis of factors such as, but not limited to, size and location
of space and the term of the lease), if any, recently executed for space in other buildings in the Pertinent Market which are comparable
to the Demised Premises in reputation, quality, age, size, location and quality of services provided, and the fact that landlord
will not be required to provide any allowances or free rent or to pay a brokerage commission. For the purposed hereof, “Pertinent
Market” shall mean within ten (10) miles of the location of the Demised Premises. If Landlord and Tenant do not agree on
the FMRR within thirty (30) days of Tenant’s notice that it has exercised its option, the FMRR shall be determined by arbitration
before a single arbitrator who shall be a real estate broker who is a licensed appraiser in New Jersey with at least fifteen (15)
years of relevant prior experience and who is actively involved in commercial real estate transactions within the Pertinent Market.
The arbitrator shall be selected by mutual agreement of the parties within twenty (20) days after the expiration of such 30-day
negotiation period, or, if the parties cannot agree on the selection of an arbitrator, then the arbitrator shall be assigned by
the Assignment Judge of the Superior Court of New Jersey in Bergen County. The arbitration shall be conducted in accordance with
the Commercial Arbitration, expedited procedures then utilized and in effect with the American Arbitration Association (AAA), although
it shall not be conducted before the AAA. The Arbitrator shall render a written decision within not more than forty-five (45) days
after submission.

 

41.3        Except
as to the amount of Fixed Rent, all of the other terms, covenants, conditions and agreements set forth in this Lease shall apply
to all renewal terms; except that there shall be no further options to renew this Lease.

 

		42.	Incorporation of Recitals.

42.1.       The
recitals set forth in this Lease are hereby incorporated into this Lease.

 

    	 	44	 

     

    

 

IN WITNESS WHEREOF, Landlord
and Tenant have executed or caused to be executed, these presents, as of the date first hereinabove set forth.

 

	Signed, Sealed and Delivered	 	400 COMMERCE BOULEVARD, LLC	 
	in the Presence of:	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	Edward Russo, Manager	 
	 	 	 	 	 
	ATTEST:	 	THE DONNA KARAN COMPANY, LLC	 
	 	 	 	 	 
	 	 	By:	 	 

 

    	 	45	 

     

    

 

Schedule “A”

Lease Plan 

 

    	 	46	 

     

    

 

Schedule “B”

Fixed Rent During Initial Term

 

	Total SF:	 	 	197,445	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Lease Year	 	Rent
    PSF	 	 	Annual
    Rent	 	 	Monthly
    Rent	 
	May 1, 2012 - April 1, 2013 *	 	$	7.25	 	 	$	1,312,186.56	 	 	$	119,289.69	 
	May 1, 2013 - December 31, 2013 **	 	$	7.25	 	 	$	954,317.50	 	 	$	119,289.69	 
	January 1, 2014 - April 30, 2014 ***	 	$	7.50	 	 	$	493,612.50	 	 	$	123,403.13	 
	May 1, 2014 - April 30, 2015	 	$	7.50	 	 	$	1,480,837.50	 	 	$	123,403.13	 
	May 1, 2015 - April 30, 2016	 	$	7.50	 	 	$	1,480,837.50	 	 	$	123,403.13	 
	May 1, 2016 - April 30, 2017	 	$	8.00	 	 	$	1,579,560.00	 	 	$	131,630.00	 
	May 1, 2017 - April 30, 2018	 	$	8.00	 	 	$	1,579,560.00	 	 	$	131,630.00	 
	May 1, 2018 - April 30, 2019	 	$	8.00	 	 	$	1,579,560.00	 	 	$	131,630.00	 
	May 1, 2019 - April 30, 2020	 	$	8.00	 	 	$	1,579,560.00	 	 	$	131,630.00	 
	May 1, 2020 - April 30, 2021	 	$	8.50	 	 	$	1,678,282.50	 	 	$	139,856.88	 
	May 1, 2021 - April 30, 2022	 	$	8.50	 	 	$	1,678,282.50	 	 	$	139,856.88	 
	May 1, 2022 - April 30, 2023	 	$	8.50	 	 	$	1,678,282.50	 	 	$	139,856.88	 
	May 1, 2023 - April 30, 2024	 	$	8.50	 	 	$	1,678,282.50	 	 	$	139,856.88	 
	 	 	 	 	 	 	$	18,753,161.56	 	 	 	 	 

 

* Rent charged on 11 of 12 months for the first lease year

** Indicates an eight month lease period

*** Indicates a four month lease period

 

    	 	47	 

     

    

 

Schedule “B-1”

Fixed Rent For Option Term Unless FMRR
Applies 

 

	Total SF:	 	 	197,445	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Lease Year	 	Rent
    PSF	 	 	Annual
    Rent	 	 	Monthly
    Rent	 
	May 1, 2024 - April 30, 2025	 	$	9.50	 	 	$	1,875,727.50	 	 	$	156,310.63	 
	May 1, 2025 - April 30, 2026	 	$	9.50	 	 	$	1,875,727.50	 	 	$	156,310.63	 
	May 1, 2026 - April 30, 2027	 	$	9.50	 	 	$	1,875,727.50	 	 	$	156,310.63	 
	May 1, 2027 - April 30, 2028	 	$	10.00	 	 	$	1,974,450.00	 	 	$	164,537.50	 
	May 1, 2028 - April 30, 2029	 	$	10.00	 	 	$	1,974,450.00	 	 	$	164,537.50	 
	May 1, 2029 - April 30, 2030	 	$	10.00	 	 	$	1,974,450.00	 	 	$	164,537.50	 
	May 1, 2030- April 30, 2031	 	$	10.00	 	 	$	1,974,450.00	 	 	$	164,537.50	 
	May 1, 2031 - April 30, 2032	 	$	10.50	 	 	$	2,073,172.50	 	 	$	172,764.38	 
	May 1, 2032 - April 30, 2033	 	$	10.50	 	 	$	2,073,172.50	 	 	$	172,764.38	 
	May 1, 2033 - April 30, 2034	 	$	10.50	 	 	$	2,073,172.50	 	 	$	172,764.38	 
	May 1, 2034 - April 30, 2035	 	$	10.50	 	 	$	2,073,172.50	 	 	$	172,764.38	 
	Total Rent for Renewal Term	 	 	 	 	 	$	21,817,672.50	 	 	 	 	 

 

    	 	48	 

     

    

 

Schedule “C”

Routine Landlord Maintenance

 

		1.	HVAC Systems: Landlord shall enter into a maintenance contract for all HVAC equipment and
systems including, but not limited to, unit heaters, rooftop package heating/cooling systems, and exhaust fans. The maintenance
contract shall require that all systems be inspected, maintained and repaired approximately four (4) times each year.

 

		2.	Material Handling Systems: Landlord shall enter into a maintenance contract for all dock
levelers, dock seals, loading doors and other loading accessories. The maintenance contract shall require that all equipment be
inspected, lubricated, adjusted, cleaned and otherwise maintained and repaired approximately two (2) times each year.

 

		3.	Exterior Walls: Landlord’s maintenance to the exterior brick walls may include the
application of a waterproofing material such as Prime-a-Pel or an equivalent substitute, if and as needed, approximately one (1)
time every five (5) years. Landlord’s maintenance to the exterior block walls may include the application of a paint and
waterproofing material, if and as needed, approximately one (1) time every five (5) years. All exterior caulking shall be removed
and replaced, if and as needed, approximately one (1) time every ten (10) years. The work described in this paragraph 3 was last
completed in June of 2007.

 

		4.	Parking & Loading Areas: All paved areas may be resurfaced, if and as needed, approximately
once every ten (10) years. This work may include, but not be limited to, the removal and replacement of approximately two (2”)
inches of fine aggregate top course asphalt, and removal and replacement of concrete aprons, curbs, sidewalks, and brick pavers.
This work was last completed in June of 2009.

 

		5.	Elevators: All elevators may be inspected, maintained, and repaired as needed, approximately
two (2) times each year.

 

		6.	Exterior Signage: All non-masonry components of the exterior signage may be inspected, maintained
and repaired as needed, approximately one (1) time every year.

 

		7.	Exterior Lighting: All exterior site lighting may be inspected regularly to insure that
fixtures are operating properly. All light bulbs may be inspected and replaced as needed, approximately once per year and all and
ballasts shall be inspected and replaced as needed, approximately one (1) time every two (2) years.

 

		8.	Stormwater Management: All stormwater management improvements including, but not limited
to, detention basins, water quality basins, StormceptorsTM, sand filters, catch basins, and trench drains may be inspected,
cleaned and repaired once every six (6) months.

 

		9.	Landscaping: The Landlord shall contract to have all landscaped areas maintained at least
one (1) day per week during the growing season (approximately April through November). This work shall consist of: (i) mowing,
fertilizing, and irrigation of all lawn areas; (ii) placement of mulch and “annual” plants in landscaped beds; (iii)
pruning, spraying, and other pest control for trees, shrubs, and perennials; (iv) general cleanup of the Demised Premises.

 

    	 	49	 

     

    

 

		10.	Snowplowing: The Landlord will contract to have all paved areas and sidewalks snowplowed
when accumulations exceed one (1) inch and salted whenever icy conditions exist.

 

    	 	50	 

     

    

 

Schedule “D”

Restoration at the end of the Lease
Term

 

As part of its obligation to maintain the
Demised Premises and to restore it to substantially its original condition subject to the passage of time, at Tenant’s sole
cost and expense, prior to the Termination Date, and without limiting the terms of the Lease, the Tenant shall be responsible for
the following items in connection with the restoration of the Demised Premises (the “Restoration Work”). All Restoration
Work to be completed by Tenant shall be at Tenant’s sole cost and expense. All Restoration Work to be completed by Landlord
shall be deducted from Tenant’s Security Deposit, provided that if the cost of the Restoration Work completed by Landlord
exceeds Tenant’s Security Deposit, Tenant shall pay the difference to Landlord within thirty (30) days of Landlord’s
invoice for said work. The provisions of this section shall survive the expiration of the Lease Term.

 

		1.	Tenant shall completely remove all material handling systems and equipment including, but not limited
to, racking, pallets, fencing, conveyor systems, pump jacks, and forklifts. All anchor bolts installed in the warehouse floor shall
be removed and the resulting penetrations shall be caulked with a Landlord approved epoxy material such as Euclid-500 or and equivalent
material. All structural supports suspended from the roof frame to support material handling equipment shall also be completely
removed.

 

		2.	Tenant shall remove all its personal property including, but not limited to furniture, equipment,
racking systems, material handling equipment, files, decorations, plants, throw rugs, and computers.

 

		3.	Tenant shall replace any damaged or missing ceiling grid and ceiling tiles. All walls, doors, door
hardware, cabinets, counters, wall coverings, and tile floors shall be in good working order and condition. All kitchen systems
and all bathroom systems including, but not limited to, pipes within the demised premises, urinals, toilets, showers, lavatories,
lockers, mirrors, and accessories shall be in good working order and condition.

 

		4.	Tenant shall replace all light bulbs, ballasts, lenses and other accessories for light fixtures
throughout the entire warehouse and office areas of the Demised Premises that are not in good working order and condition. This
includes the obligation of Tenant to pay Tenant’s Proportionate Share of replacement of such items in all light fixtures
on the exterior of the Building. All electric circuits, switches, conduit and other electrical systems shall be in good working
order and condition. There shall be no exposed wiring, open junction boxes, and missing outlet and/or switch covers.

 

		5.	Tenant shall remove all in-rack sprinkler systems including system acquired from previous tenant,
if any, and restore the sprinkler system to its original configuration as delivered to Tenant at the Commencement Date.

 

Upon Tenant’s vacation of the Demised
Premises, but prior to the Termination Date, Landlord shall inspect the Demised Premises to determine if Tenant has not completed
any Restoration Work. Landlord shall provide Tenant with a list of all outstanding Restoration Work, including a cost estimate
for each item, within seven (7) days of Landlord’s inspection. Landlord shall complete all outstanding Restoration Work,
including but not limited to the following items, at Tenant’s sole cost and expense:

 

    	 	51	 

     

    

 

		1.	Landlord shall repair all exterior sidewalks, curbs, and paved areas that are in need of repair
or have been damaged by Tenant, its subtenants, employees, agents, invitees and contractors during Tenant’s occupancy of
the Demised Premises.

 

		2.	Landlord shall repair and/or replace all dock seals, dock bumpers, loading doors and levelors that
have been damaged by Tenant since Landlord’s last routine maintenance inspection, which shall be provided to Tenant promptly
after receipt by Landlord. .

 

		3.	Landlord shall paint all exterior railings and other exposed steel surfaces, if required.

 

		4.	Landlord shall clean the entire warehouse floor with a ride-on scrubbing machine.

 

		5.	Landlord shall repair all large penetrations and other areas in warehouse floor, including construction/control
joints, which have been materially damaged by forklift traffic, acids leaking from forklift batteries or otherwise by removing
and replacing these areas in accordance with Landlord’s specification.

 

    	 	52	 

     

    

 

Schedule “E”

Limited Guarantee of Lease

 

In consideration of,
and as the material inducement for the granting, execution and delivery of a certain Lease dated as of ________________, 2011,
(hereinafter called the “Lease”) by 400 COMMERCE BOULEVARD, LLC, a limited liability company of the State of New Jersey
(hereinafter called the “Landlord”), to THE DONNA KARAN COMPANY LLC, a limited liability company of the State of Delaware
(hereinafter called the “Tenant”), and in further consideration of the sum of TEN DOLLARS ($10.00) and other good and
valuable consideration paid by the Landlord to the undersigned, the receipt whereof is hereby acknowledged, the undersigned, (hereinafter
called the “Guarantor”), hereby guarantees to the Landlord, its successors and assigns, the full and prompt payment
of all Fixed Rent, Supplemental Rent, Additional Rent and any and all other sums and charges payable by the Tenant, its successors
and assigns, under said Lease including, without limitation, monetary damages arising from a breach of the Lease by Tenant, its
successors and assigns, and the full performance and observance of all the monetary or financial covenants therein provided to
be performed and observed by the Tenant, its successors and assigns, pursuant to the Lease, and the Guarantor hereby covenants
and agrees with the Landlord, its successors and assigns, that if default shall at any time be made by the Tenant, its successors
and assigns, in the payment of any such Fixed Rent, Supplemental Rent, or Additional Rent or other sums payable by the Tenant under
said Lease, or in the performance of any of the monetary or financial covenants contained in the said Lease, the Guarantor will,
if said default remains uncured after notice to Tenant and expiration of the applicable cure period under the Lease after thirty
(30) days written notice to Guarantor forthwith pay such Fixed Rent, Supplemental Rent, or Additional Rent or other sums to the
Landlord, its successors and assigns, and any arrears thereof, and will forthwith faithfully perform and fulfill all of such terms,
covenants, conditions and provisions, and will forthwith pay to the Landlord all reasonable and foreseeable damages, as set forth
in the Lease, that may arise in consequence of any default beyond applicable notice and grace periods by the Tenant, its successors
and assigns, under said Lease, including reasonable attorneys’ fees incurred by Landlord because of said default, pursuant
to the terms and conditions as set forth in the Lease.

 

Notwithstanding anything
to the contrary in this Guaranty or in the Lease, the total liability of the Guarantor hereunder shall never in any case exceed
and shall be and is strictly limited to a maximum sum of Six Million and 00/100 ($6,000,000.00) Dollars.

 

This Guaranty is a
guaranty of payment of all monetary obligations of the Tenant, its successors and assigns, under the Lease. It shall be enforceable
against the Guarantor, its successors and assigns, without the necessity of any suit or proceedings on the Landlord’s part
of any kind or nature whatsoever against the Tenant, its successors and assigns, and without the necessity of any notice of non-payment,
non-performance or non-observance of any notice of acceptance of this Guaranty except the written notice required by this Agreement
and the Guarantor hereby expressly agrees that the validity of this Guaranty and the obligations of the Guarantor hereunder shall
in no way be terminated, affected or impaired by reason of the assertion or the failure to assert by the Landlord against the Tenant
of any of the rights or remedies reserved to the Landlord pursuant to the provisions of the said Lease. Notwithstanding anything
to the contrary Guarantor shall have all defenses, right and remedies of Tenant under the Lease.

 

This Guaranty shall
be a continuing Guaranty, for and during the original term and, provided that Guarantor has consented to a renewal term or terms,
any renewal term or terms of the foregoing

 

    	 	53	 

     

    

 

Lease. The liability of the Guarantor hereunder
shall in no way be affected, modified or diminished by reason of any assignment, or modification of the Lease provided that Guarantor
has consented in writing to such assignment or modification of the Lease, or any dealings or transactions occurring between Landlord
and Tenant, or any bankruptcy, insolvency, reorganization, liquidation, arrangement, assignment for the benefit of creditors, receivership,
trusteeship or similar proceeding affecting Tenant, whether or not notice thereof is given. In the event of: (i) the sale, transfer
or hypothecation of the assets, stock or other means of Guarantor’s controlling interest of Tenant by Guarantor; or (ii)
any assignment or transfer of the Lease Landlord shall not unreasonably withhold its consent to an assignment of this Guaranty
to, and the assumption of this Guaranty by a business entity which in the Landlord’s reasonable judgment is a reasonable
substitute for the Guarantor considering both the reputation and financial capacity of the proposed substitute Guarantor; and upon
any such assignment and assumption by such an entity, Landlord shall release the undersigned Guarantor from further liability hereunder
and shall look solely to the assignee for performance of this Guaranty.

 

Until all the covenants
and conditions regarding the payment of Fixed Rent, Supplemental Rent and/or Additional Rent in said Lease on Tenant’s part
to be performed and observed are fully performed and observed, Guarantor shall have no right of subrogation against Tenant by reason
of any payments or acts of performance by the Guarantor, in compliance with the obligations of the Guarantor hereunder.

 

All of the Landlord’s
rights and remedies under the said Lease or under this Guaranty are intended to be distinct, separate and cumulative and no such
right and remedy therein or herein contained is to be in exclusion of or a waiver of any of the others.

 

No delay on the part
of Landlord in exercising any right, power or privilege under this Guaranty or failure to exercise the same shall operate as a
waiver of, or otherwise affect any such right, power or privilege, nor shall any single or partial exercise thereof preclude any
other or further exercise of any right, power or privilege.

 

No waiver or modification
of any provision of this Guaranty or the Lease shall be effective unless in writing and signed by Landlord and Guarantor, nor shall
be chargeable to and paid by the Guarantor.

 

The Guarantor irrevocably
consents to jurisdiction and venue of any cause of action arising under or relating to the said Lease and/or this Guaranty solely
and exclusively in the state or federal courts of New Jersey. The Guarantor hereby irrevocably consents and agrees to transfer
of any such action pending in any other jurisdiction to the state or federal courts in New Jersey. The Guarantor agrees that service
of process in the same manner as provided herein for service of notices shall be sufficient to obtain in personam jurisdiction
over the Guarantor in any action instituted by Landlord to enforce this Guaranty in the state or federal courts of New Jersey.

 

Any notice to or demand
of Guarantor hereunder shall be delivered by hand or reputable overnight courier service, mailed by certified or registered mail,
to Guarantor at 22, avenue Montaigne, 75008 Paris, Attention: General Counsel with a copy to LVMH Moet Hennessy Louis Vuitton Inc.,
19 East 57th Street, New York, New York 10022 Attention: General Counsel or to such other address within the United States as Guarantor
shall furnish in writing to Landlord. Any such notice or demand shall be deemed to have been given on the date of receipted delivery
or refusal to accept delivery as

 

    	 	54	 

     

    

 

provided herein or the date delivery is
first attempted but cannot be made due to a change of address of which no notice was given

 

GUARANTOR AND LANDLORD
EACH HEREBY WAIVES TRIAL BY JURY AND THE RIGHT THERETO IN ANY ACTION OR PROCEEDING OF ANY KIND OR NATURE, ARISING ON, UNDER OR
BY REASON OF OR RELATING TO, THIS GUARANTY OR ANY AGREEMENT COLLATERAL HERETO.

 

This Agreement is entered
into in the State of New Jersey and shall be governed and construed according to the laws of the State of New Jersey.

 

IN WITNESS WHEREOF,
the Guarantor has hereunto set its hand and seal this __ day of November, 2011.

 

	WITNESS:	 	LVMH MOET HENNESSY LOUIS VUITTON S.A.	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 

 

ACKNOWLEDGMENT:

 

	State of	)
	 	) SS.
	County of	)

 

On this _____ day of ______________, 2011,

_____________________________________________,
personally came before me and stated to my satisfaction that this person:

(a) was the maker of the attached instrument;

(b) was authorized to and did execute this instrument as _________________________
of LVMH MOET HENNESSY LOUIS VUITTON, S.A., the entity named in this instrument; and

(c) the seal affixed to the said instrument is such entity seal
and it was so affixed by Resolution/Order of the of the Members/Board of Directors of said entity;

(d) executed this instrument as the act of the entity named
in this instrument.

 

	 	 	 
	 	Notary Public	 

 

    	 	55	 

     

    

 

Schedule “F”

Rules and Regulations

 

		1.	Tenant will undertake a general maintenance program, either through its own employees or outside
contractors, for general and periodic window cleaning for the Demised Premises, when necessary.

 

		2.	Tenant shall not permit debris, paper or other waste from accumulating in the parking lot, landscape
or open space areas as a result of actions of Tenant. If Tenant is not keeping the exterior of the Demised Premises free from such
waste and refuse in Landlord’s reasonable judgment, Landlord shall contract for the routine cleanup of this area at the sole
cost and expense of Tenant.

 

		3.	Tenant shall, at all times, supply sufficient heat to assure that the Demised Premises is kept
at a temperature greater than fifty (50) degrees Fahrenheit.

 

		4.	All movable material handling equipment in the warehouse area shall use only soft, rubber wheels
and no such equipment shall use hard rubber, steel, or plastic wheels.

 

		5.	Tenant agrees that it will supply the names, addresses and telephone numbers of at least two (2)
representatives of Tenant who can be contacted in the event of an emergency. Tenant will keep such “emergency list”
current.

 

		6.	Any loading equipment installed/replaced by Tenant at the Demised Premises shall be as follows:

 

Loading Doors:

All new loading doors shall be
manual, vertical lift insulated steel sectional doors as manufactured by Fimbel Door Corporation or an approved equivalent manufacturer
to include the following:

		1.	Full perimeter weatherseals

		2.	2” thick foam in place insulated sections

		3.	Inside slide locks

		4.	One (1) 20” x 5” vision lite

		5.	Color to be factory prefinished white.

 

Dock Levelers:

All new dock levelers shall be
6’0” x 8’0”, 35,000 lbs. capacity mechanical dock levelors manufactured by Rite-Hite Corporation

 

Dock Seals:

All new dock seals for 8’0”
x 8’0” openings shall be Frommelt Model ATP 791 painted black. All new dock seals for any other size opening shall
be Frommelt Model ATP 793 with adjustable, pull-rope curtain headers and overlapping 8” Armor Pleats on side pads and head
curtain.

  

    	 	56	 

     

    

  

		7.	Any roofing system which may be installed by the Tenant at the Demised Premises shall be to the
following specification:

 

Carlisle Golden Seal Total Roofing
System:

All new roofing systems shall be
a fully adhered single-ply .060 mil EPDM roof as manufactured by Carlisle, Firestone or an equivalent manufacturer. The roof membrane
and insulation shall have a warranty from the roof manufacturer for a period of no less than ten (10) years.

 

Upon notice by Landlord
to Tenant of a breach of any of the Rules and Regulations Tenant shall, within five (5) days thereafter, comply with such rule
and regulation and in the event Tenant shall not comply, then Landlord may at its discretion either: (i) cure such condition and
add any reasonable cost and expense incurred by the Landlord therefore to the next installment of Additional Rent due under the
Lease; or (ii) treat such failure on the part of the Tenant to remedy such condition as a material breach of the Lease on the part
of the Tenant.

 

    	 	57

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