Document:

Prepared by MerrillDirect

EXHIBIT
10.34

SUBLEASE

FIRST ALBANY COMPANIES INC.,

As Sublandlord

AND

CONNECTECH, LLC d/b/a TELX,

As Subtenant

SUBLEASE

             THIS
SUBLEASE (hereinafter referred to as the "Sublease") is made as of
the __ day of January, 1999 between FIRST ALBANY COMPANIES INC., a New York
corporation having offices at 30 South Pearl Street, Albany, New York
12207-1599 hereinafter referred to as "Sublandlord") and CONNECTECH,
LLC d/b/a TELX, a New York limited liability company having offices at 60
Hudson Street, New York, New York 10013 (hereinafter referred to as
"Subtenant')

WITNESSETH

             WHEREAS,
pursuant to a certain Lease dated as of May 17, 1994, as amended by
Commencement Date Agreement dated as of June 13, 1994, and as further amended
by Amendment and Extension of Lease dated as of November 1, 1996, between
Teachers Insurance and Annuity Association of America, as landlord (hereinafter
referred to as "Landlord"), and Russian-American Enterprise Fund and
the Fund For Large Enterprises in Russia jointly and severally (hereinafter
collectively referred to as "Russia"), Sublandlord's
predecessor-in-interest, as tenant (Sublandlord having succeeded to the
interest of Russia in and to the Main Lease pursuant to Assignment and
Assumption Agreement dated as of November -, 1996 between Russia and
Sublandlord) (hereinafter referred to the "Main Lease") , Sublandlord
is the tenant of certain premises consisting of the entire thirty-third (33rd)
floor (hereinafter referred to as the "Demised Premises") in the
building located at 17 State Street,New York, New York (hereinafter referred to
as the "Building") ; and

             WHEREAS,
Sublandlord wishes to sublease to Subtenant, and Subtenant wishes to sublet
from Sublandlord, the Demised Premises (hereinafter referred to as the
"Sublet Premises") a diagram of which is set forth on Schedule A to
the Main Lease and which the parties hereto agree shall be deemed to consist of
13,700 rentable square feet, on the terms and conditions hereinafter set forth.

             NOW,
THEREFORE, for and in consideration of the rental payments to be made hereunder
by Subtenant to Sublandlord and the mutual consideration hereinafter set forth,
Sublandlord and Subtenant hereby covenant and agree as follows:

           1.          Subleasing.

                                      
               A.         Sublandlord does hereby sublease to
Subtenant, and Subtenant does hereby hire and take from Sublandlord, the Sublet
Premises for the term and on the conditions hereinafter set forth, and subject
to all the terms, covenants and provisions of the Main Lease, except as
otherwise herein provided.

                                      
               B.          The term of this Sublease shall
commence on the date (hereinafter referred to as the "Sublease
Commencement Date") which is the later of (i) the date a fully executed
copy of Landlord's consent, as provided for in Article 18 of this Sublease,is
delivered to Subtenant and (ii) the date vacant broom clean possession of the
Sublet Premises is available to Subtenant and notice thereof has been given to
Subtenant (which notice, notwithstanding anything in this Sublease to the
contrary, may be hand-delivered) and shall expire at midnight on March 30,
2007, or or such
earlier date on which this sublease may expire or be cancelled or terminated
pursuant to its terms or as provided by law (hereinafter
referred to as the "Sublease Expiration Date"). When the Sublease
Commencement Date has occurred and been established, Sublandlord and Subtenant
shall, within thirty (30) days of a request by Sublandlord or Subtenant,
execute an agreement confirming such date as the Sublease Commencement Date.
Any failure of the parties to execute such agreement shall not affect the
validity of the Sublease Commencement Date, the Sublease Expiration Date or
this Sublease.

                                      
               C.          Notwithstanding anything to the
contrary in the foregoing, Subtenant shall, upon prior reasonable notice to
Sublandlord, have access to the Sublet Premises prior to the Sublease
Commencement Date solely for the purpose of measuring same

 

           2.          Rent.

                                      
               A.         Subtenant covenants and agrees to pay
to Sublandlord rent (herein referred to as the "Fixed Rent") for the
Sublet Premises as follows:

                                      
                             (i)          $397,300.00   
    per        annum
($33,108.33 per month) from the Sublease Commencement Date through January 31,
2001 (both dates inclusive)

                                      
                             (ii)         $452,100.00   
    per        annum
($37,675.00 per month) from February 1, 2001 through January 31, 2005 (both
dates inclusive)

                                      
                             (iii)        $506,900.00    
   per        annum
($42,241.67 per month) from February 1, 2005 and thereafter throughout the
remainder of the term of this sublease, all of which shall be payable in
advance on the first day of each calendar month.

                           Notwithstanding
anything in the foregoing to the contrary, it is agreed and understood that
Subtenant's obligation to pay Fixed Rent shall commence on the date which is
the later of (i) the Sublease Commencement Date and (ii) February 15, 1999.
Payment of the first due and payable installment of Fixed Rent shall be made
upon the execution and delivery hereof by Subtenant.

                           If
the Sublease Commencement Date shall occur on a day other than the first day of
a calendar month, Fixed Rent for the month in which the first payment of Fixed
Rent shall actually be made shall be apportioned. Fixed Rent and all other
amounts payable by Subtenant to Sublandlord under the provisions of this
Sublease (herein referred to as the "Additional Rent") shall be paid promptly
when due, without notice or demand therefor, and without deduction, abatement,
counterclaim or setoff of any amount or for any reason whatsoever. Fixed Rent
and Additional Rent shall be paid to Sublandlord in lawful money of the United
States at the address of Sublandlord set forth in Article 19 of this Sublease
or to such other person and/or at such other address as Sublandlord may from
time to time designate by notice to Subtenant as provided for herein. No
payment by Subtenant or receipt by Sublandlord of any lesser amount than the
amount stipulated to be paid hereunder shall be deemed other than on account of
the earliest stipulated Fixed Rent or Additional Rent; nor shall any
endorsement or statement on any check or letter be deemed an accord and satisfaction,
and Sublandlord may accept any check or payment without prejudice to
Sublandlord's right to recover the balance due or to pursue any other remedy
available to Sublandlord. Any provision in the Main Lease referring to fixed
rent or additional rent incorporated herein by reference shall be deemed to
refer to the Fixed Rent and Additional Rent due under this Sublease.

                                      
               B.          In addition to the Fixed Rent,
Subtenant shall pay to Sublandlord as Additional Rent, within five (5) days
after demand from Sublandlord from time to time: (a) the difference, if any,
between "Tenant's Tax Payment" (as defined in Section 3.2(A) of the
Main Lease) payable by Sublandlord as tenant under the Main Lease during any
"Tax Year" (as defined in Article 1 of the Main Lease) and (ii)
Tenant's Tax Payment payable by Sublandlord as tenant under the Main Lease for
fiscal year July 1,1998 through June 30, 1999; and (b) the difference, if any,
between (i) "Tenant”s Operating payment (as defined in Section 3.3(A) of
the Main Lease) payable by Sublandlord as tenant under the Main Lease during
any "Operating Year" (as defined in Article 1 of the Main Lease) and
(ii) Tenant’s Operating Payment payable by Sublandlord as tenant under the Main
Lease for calendar year January 1, 1999 through December 31, 1999. All such
demands shall be accompanied by a copy of any invoice, bill, notice or request,
including Landlord's Tax Statement and Landlord's Operating Statement, received
by Sublandlord from Landlord. Notwithstanding anything to the contrary in the
foregoing, Sublandlord's demand for Additional Rent as aforesaid shall not be
made more than fifteen (15) days prior to the date Sublandlord has to pay
Landlord Tenant's Tax Payment and Tenant's Operating Payment. Subtenant shall
also pay to Sublandlord as Additional Rent, upon demand from time to time, all
other amounts payable by Sublandlord to Landlord under the Main Lease allocable
to the Sublet Premises and to the term of this Sublease pursuant to the
provisions thereof. If Sublandlord is required by Landlord under the Main Lease
to make advance payment,  estimated
payments or deposits of any of the foregoing amounts, Subtenant shall make 100%
of such advance payments, estimated payments or deposits to Sublandlord
consistent with the above provisions. Subtenant's obligations under this
Article 2 shall be apportioned for any period at the beginning or end of the
term of this Sublease that is less than a full calendar year or fiscal year.
Sublandlord shall have the right to demand payment of any amount of such
Additional Rent during the term of this Sublease or after the expiration of the
term of this Sublease or the earlier termination of this Sublease.

 

                                      
               C.          If the sum of any installment or
estimated payments made by Subtenant on account of any or all of the items set
forth in subparagraph B of this Article 2 exceed Sublandlord's share of such
item(s) with respect to the Sublet Premises under the Main Lease for any year,
Sublandlord shall refund the excess to Subtenant within ten (10) days after the
amount of the excess is refunded to Sublandlord by Landlord. If the sum of any
installment or estimated payments made by Subtenant on account of any or all of
the items set forth in subparagraph B of this Article 2 are less than
Sublandlord's share of such item(s) with respect to the Sublet Premises under
the Main Lease for any year, Subtenant shall pay the amount of such deficiency
to Sublandlord within ten (10) days after demand.

                                      
               D.         All costs, expenses and fees other than
Fixed Rent which Subtenant assumes or agrees to pay pursuant to this Sublease
(including without limitation1 all costs expenses and fees payable by
Sublandlord as tenant under the Main Lease with respect to the Sublet Premises
which are payable hereunder by Subtenant by their incorporation herein by
reference to the Main Lease) shall be deemed Additional Rent and, in the event
of non-payment, Sublandlord shall have all the rights and remedies provided for
in the case of non-payment of Fixed Rent.

                                      
               E.          Subtenant shall pay, on or before the
date same is due, any occupancy, sales, use or similar tax, charge or fee that
is at any time due or payable with respect to the occupancy or use of the
Sublet Premises or the payment of Fixed Rent or Additional Rent by Subtenant to
Sublandlord, and which is attributable to this Sublease and/or the Sublease
Term.

           3.          Subordination
to Main Lease.

                                      
  This
Sublease is and shall be expressly subject and subordinate to the Main Lease
and the terms, provisions, covenants and conditions thereof. This Sublease is
also subject and subordinate to all instruments, agreements and other matters
to which the Main Lease is or shall be subject or subordinate.

           4.          Rights
and Obligations; Exceptions.

                                      
               A.         Subtenant acknowledges that Sublandlord
has provided Subtenant with a copy of the Main Lease (with certain financial
terms redacted) for its review. Subtenant confirms that Subtenant has read the
Main Lease and is familiar with the terms and provisions thereof. Except as
otherwise expressly provided herein, all of the terms, provisions, covenants,
agreements and conditions of the Main Lease are incorporated herein by
reference and made a part of this Sublease with the same force and effect as
though set forth in full herein. Subtenant shall conform to, and use the Sublet
Premises in accordance with, all the terms, provisions, covenants, agreements
and conditions of the Main Lease as same apply to the Sublet Premises, and will
do no act which will result in a violation of said terms, provisions,
covenants, agreements and conditions. Subtenant shall perform the terms,
provisions, covenants, agreements and conditions of the Main Lease on the part
of the tenant therein named to be performed with respect to the Sublet Premises
(except as otherwise may be expressly provided herein) To the extent there are
inconsistencies between any provision of the Main Lease and any provision of
this Sublease, this Sublease shall control unless the use or occupancy of the
Sublet Premises by Subtenant or any action or inaction by Subtenant in
accordance with said provision becomes a default under the terms of the Main
Lease, in which event the provisions of the Main Lease shall control.

                           Subtenant
shall be entitled to the rights of Sublandlord, as tenant under the Main Lease
insofar as the same relate to the Sublet Premises. Sublandlord shall have no
liability by reason of any default of Landlord under the Main Lease, it being
understood that if Sublandlord shall fail to fulfill any obligation of the
Sublandlord hereunder and if such failure is caused by the failure of Landlord
to comply with its obligations under the Main Lease, then Sublandlord shall
have no obligation or liability by reason of such failure, but in such event
Subtenant shall be subrogated to the rights of Sublandlord to enforce the
obligations of Landlord under the Main Lease insofar as such obligations relate
to the Sublet Premises. Without limiting the generality of the foregoing,
Subtenant understands that the supplying of services including, without
limitation, heat, light, water, air conditioning and other utilities,  janitorial cleaning, window washing and
elevator services, and building maintenance and repair are the obligations of
the Landlord and that Sublandlord has no control thereof, and assumes no
responsibility in connection therewith; and no failure to furnish, or
interruption of, any such services or facilities shall give rise to any (a)
abatement, diminution or reduction of Subtenant's obligations under this
Sublease, (b) constructive eviction, in whole or in part, or (c) liability on
the part of the Sublandlord.

 

                           If
the Landlord shall default in any of its obligations to Sublandlord with
respect to the Sublet Premises, Subtenant, at Subtenant's sole cost and
expense, shall have the right in its own name, that of Sublandlord, or both, to
bring an action or proceeding with respect to such default, and Subtenant
hereby is subrogated to the rights of Sublandlord against Landlord to the
extent that  the same shall apply to he
Sublet Premises. Sublandlord agrees to take such steps at Subtenant's sole cost
and expense, as Subtenant may reasonably request to cooperate with Subtenant in
any such legal proceeding or action. If Subtenant shall commence any proceeding
or take any other action to enforce the obligations of the Landlord insofar as
such obligations relate to the Sublet Premises, Subtenant agrees to indemnify
and hold Sublandlord harmless from and against any costs, liabilities, damages
or expenses (including attorney's fees) which Sublandlord may incur in connection
therewith or by reason thereof.

                           Notwithstanding
anything to the contrary in the foregoing, Sublandlord shall promptly forward
to Landlord any requests or other communications made by Subtenant related to
the performance by Landlord of its obligation under the Main Lease, as they
pertain to the Sublet Premises, and shall promptly forward to the Subtenant any
communication received from the Landlord related to the Sublet Premises.

                                      
  B.          Notwithstanding anything to the
contrary contained in this Sublease or the Main Lease:

                                      
               (i)          for the purposes of incorporation of
the Main Lease by reference in this Sublease, except as otherwise expressly
provided herein, and except to the extent that they are inapplicable or
modified by the terms and provisions of this Sublease (a) references in the
Main Lease to the “Demised Premises" shall be deemed to refer to the
Sublet Premises, (b) references in the Main Lease to "Landlord" shall
be deemed to refer to Sublandlord under this Sublease, (c) references in the Main
Lease to "Tenant" shall be deemed to refer to Subtenant under this
Sublease, (d) references in the Main Lease to "this Lease" shall be
deemed to refer to this Sublease,  (e)
references in the Main Lease to the "Term" of the Lease shall be
deemed to refer to the term of this Sublease, (f) references in the Main Lease
to the "Expiration Date" shall be deemed to refer to the Sublease
Expiration Date, and (g) references in the Main Lease to the "Commencement
Date" shall be deemed references to the Sublease Commencement Date;

                                      
               (ii)         the Fixed Rent and Additional Rent to
be paid by Subtenant hereunder shall be governed by the terms and provisions of
Article 2 of this Sublease;

                                      
               (iii)        the time limits contained in the Main
Lease for the giving of notices, making of demands or performing of any act,
condition or covenant on the part of the tenant thereunder, or for the exercise
by the tenant thereunder of any right, remedy or option, are changed for the
purposes of incorporation herein by reference by shortening the same in each
instance by five (5) days, so that in each instance Subtenant shall have five
(5) days less time to observe or perform hereunder than Sublandlord has as the
tenant under the Main Lease;

                                      
               (iv)       the following parts, provisions and exhibits
of the Main Lease are not applicable to this Sublease, and are not incorporated
herein by reference

                                      
  (a)         Articles 32, 35, 39, and 40;

                                      
  (b)        Sections 2.8, 6.4, 10.6, the third
sentence of Section 28.2, and Nos. (11), (14) and (17) of the Reference Page;

                                      
  (c)         Schedules D, E, F, C, and H; and

                                      
  (d)        Paragraphs 5, 6, 7, 8, and 9 of the
Amendment and Extension of Lease

           5.          Use.

                                      
               Subtenant
shall use the Sublet Premises for executive, administrative and general offices
and purposes incidental thereto, and for no other purposes.

 

           6.          Electricity.

                                      
               Subtenant
acknowledges that there presently exists a submeter measuring electrical
consumption and demand for the Demised Premises pursuant to the provisions of
Article 4 of the Main Lease.  Subtenant
shall pay to Sublandlord all amounts payable for electricity with respect to
the Sublet Premises by Sublandlord to Landlord which amount shall be paid
within ten (10) days of a request by Sublandlord therefore, which request shall
be accompanied by a copy of the bill received by Sublandlord from Landlord
under the Main Lease

           7.          Default.

                                      
               Subtenant
covenants and agrees that in the event that it shall default in the performance
of any of the terms, covenants and conditions of this Sublease (including those
portions of the Main Lease incorporated herein by reference) beyond any
applicable notice and grace period provided for in the Main Lease and
incorporated herein by reference (as shortened by Article 4 (B) (iii) hereof)1
Sublandlord shall be entitled to exercise any and all of the rights and
remedies to which it is entitled by law, including, without limitation, the
remedy of summary proceeding, and also any and all of the rights and remedies
specifically provided for in the Main Lease and incorporated herein by
reference.

           8.          Condition
of Sublet Premises.

                                      
               The
Sublet Premises are demised to Subtenant in the condition which shall exist on
the Sublease Commencement Date "as is", except that the Sublet
Premises shall be delivered in broom clean condition and the carpet shall be
professionally cleaned and except as otherwise hereinafter provided. Subtenant
is subleasing the Sublet Premises from the Sublandlord after having had an
opportunity to fully inspect the Sublet Premises and the right not to execute  this Sublease if the results of said
inspection were unacceptable. Therefore, except as otherwise hereinafter
provided, Subtenant hereby agrees that the term "as is" means that
upon having approved said inspection, it will sublease the Sublet Premises,
without warranty or representation, either oral or written, or expressed or
implied, as to the physical condition of the Sublet Premises and/or the
compliance of same with building, fire, health and zoning codes and other
applicable laws, ordinances and regulations. Sublandlord hereby expressly
disclaims any and all warranties or representations made to Subtenant, whether
same were made by any partner, officer, director or employee of Sublandlord or
any other agent of same, such as a broker, unless such warranty or
representation is contained in writing as a part of this Sublease Except as
otherwise provided for herein (i) Sublandlord shall not incur any greater
obligation, financial or otherwise, in connection with the Sublet Premises than
it would have had but for this Sublease, and (ii) Subtenant shall be solely
responsible for all costs which may be imposed on Sublandlord or Subtenant
under the Main Lease in connection with the condition of the Sublet Premises.

           9.          Improvements.

                                      
               A.         Subtenant may make changes,
alterations, additions or improvements to the Sublet Premises, subject,
however, to the consent of Sublandlord, which consent shall not be unreasonably
withheld or delayed, and of Landlord, to the extent required under the Main
Lease. Any changes, alterations, additions or improvements by or on behalf of
Subtenant shall be made subject to and in accordance with the provisions of the
Main Lease.

                                      
               B.          Subtenant shall pay any and all fees
or charges Sublandlord may incur and any and all fees or charges Landlord may
incur in connection with Subtenant's making changes, alterations,  additions or improvements to the Sublet
Premises. Except as expressly set forth in this Sublease, on or before the
expiration or sooner termination of this Sublease, if Landlord requires
Sublandlord to restore the Sublet Premises to their condition prior to the
making of any changes, alterations, additions or improvements by Sublandlord
and/or Subtenant, Subtenant shall, at its sole cost and expense, promptly
remove Subtenant's changes, alterations, additions or improvements to the
Sublet Premises, and repair any damage caused by such removal.

           10.        Additional
Services Required by Subtenant

                                      
               Subtenant
shall attempt to make its own arrangements with Landlord for the furnishing of
additional services to the Sublet Premises other than those which are required
to be furnished by Landlord under the terms of the Main Lease and any such
additional services shall be paid for by Subtenant. If Landlord shall refuse to
respond to such request for additional service, Sublandlord shall, at
Subtenant's sole cost and expense, request Landlord to perform such additional
services at Subtenant's sole cost and expense. For the purposes of this Article
10, the term "additional services" shall include, but not be limited
to, overtime HVAC service, overtime freight elevator service and increased
capacity of electric energy.

 

           11.        Assignment
and Subletting

                                      
               Subtenant,
for itself, its heirs, distributees, executors, administrators, legal
representatives, successors and assigns, expressly covenants that it shall not
assign, mortgage or encumber this Sublease, nor underlet, or suffer or permit
the Sublet Premises or any part thereof to be used by others, without the prior
written consent of Sublandlord (which Sublandlord agrees shall not be
unreasonably withheld or delayed) and Landlord in each instance in accordance
with the terms of Article 15 of the Main Lease. If Landlord gives its consent
to an assignment of this Sublease or a further sublet of the Sublet Premises,
or any part thereof, Sublandlord shall consent to such assignment or sublease.

           12.        Deleted
Prior to Execution

           13.        Attornment.

                                      
               In
the event of termination, re-entry or dispossession of Sublandlord by Landlord
under the Main Lease, the Landlord may, at its option, take over all of the
right, title and interest of Sublandlord, as sublessor under this Sublease, and
Subtenant shall, at Landlord's option, attorn to Landlord pursuant to the then
executory provisions of this Sublease, except that Landlord shall not (i) be
liable for any previous act or omission of Sublandlord under this Sublease,
which heretofore has accrued to Subtenant against Sublandlord, (ii) be bound by
any previous modification of this Sublease not consented to by Landlord or by
any previous prepayment of more than one month's rent, (iii) be bound to
perform any work which Sublandlord is obligated to perform hereunder, or to pay
Subtenant for the same or (iv) be subject to any offset not expressly provided
for in this Sublease which theretofore accrued to Subtenant against
Sublandlord. The Subtenant hereunder hereby waives all rights under any present
or future laws or otherwise to elect, by reason of the termination of the Main
Lease, to terminate this Sublease or surrender possession of the Sublet
Premises demised hereby.

 

           14.        Subtenant's
Representation and Warranties

                                      
               Subtenant
covenants, warrants and represents:

                                      
               (a)         that Subtenant shall perform all of its
obligations under this Sublease (including, without limitation, all of the
obligations relating to the Sublet Premises arising under the Main Lease which
are incorporated herein by reference)

                                      
               (b)        that Subtenant will not do or omit to do
anything which would constitute a default under the provisions of the Main
Lease incorporated herein by reference: and

                                      
               (c)         that Subtenant shall indemnify, defend
and hold harmless Sublandlord and Landlord and their respective agents,
contractors and employees from and against any and all claims, liabilities,
damages, losses or expenses (including, without limitation, reasonable
attorneys' fees) which may be imposed upon or incurred by or asserted against
Sublandlord and/or Landlord and/or their respective agents, contractors or
employees by reason of (i) Subtenant's failure to comply with the provisions of
this Sublease, (ii) the negligent or improper use or occupancy of the Sublet
Premises by Subtenant or its successors or assigns, (iii) any work or thing
done whatsoever by or at the instance of Subtenant, its agents, contractors,
subcontractors, employees, licensees, successors or assigns (other than work
performed by Sublandlord), or any condition created by Subtenant, its agents,
contractors, subcontractors, employees, licensees, successors or assigns in, on
or about the Sublet Premises, (iv) any negligence or other wrongful act or
omission on the part of Subtenant or any of its agents, contractors,
subcontractors, employees, licensees, successors or assigns, or (v) any
accident, injury or damage to any person or property occurring in, on or about
the Sublet Premises or any part thereof, except to the extent caused by the
gross negligence or willful misconduct of Sublandlord (with respect to a claim
against Sublandlord) or Landlord (with respect to a claim against Landlord) In
case any action or proceeding is brought against Sublandlord and/or Landlord
and/or their respective agents and employees by reason of any such claim,
neither Sublandlord nor Landlord shall settle the same without Subtenant's
written consent and Subtenant, upon written notice from Sublandlord and/or
Landlord, shall at Subtenant's expense resist and defend such action or
proceeding by counsel approved by Sublandlord and/or Landlord in writing, which
approval will not be unreasonably withheld.

 

           15.        Estoppel.

                                      
               Sublandlord
represents that (i) it has paid all rent and additional rent presently payable
pursuant to the Main Lease with respect to the Sublet Premises as of the date
of this Sublease, (ii) to its best knowledge, no event has occurred which is, or
with the giving of notice or passage of time or both will become, a condition
of limitation under the Main Lease, on the part of either Sublandlord or the
Landlord, (iii) it is currently the Tenant under the Main Lease, (iv) it has
not received any notices of default citing any defaults under the Main Lease
which remain uncured, and (v) the Main Lease, a copy of which has been examined
by Subtenant, represents the entire agreement with respect to the Sublet
Premises between the Landlord and the Sublandlord.

           16.        Security
Deposit.

                                      
               A.         Subject to the provisions of Section
16B, Subtenant shall deposit with Sublandlord on or before the date hereof, the
sum of $226,050.00 (hereinafter referred to as the "Security
Deposit") as security for the full and punctual performance by Subtenant
of all the terms of this sublease. Such Security Deposit shall be retained by
Sublandlord in accordance with the provisions of this Article 16. The security
shall be deposited in a separate interest bearing account segregated from
Sublandlord's funds, in a bank selected by Sublandlord and any interest earned
thereon (less any administrative fee to which Sublandlord may be entitled
pursuant to applicable law) shall be paid to Subtenant annually provided
Subtenant is not then in default in the observance or performance of any of its
obligations under this lease which continues after notice and the expiration of
any applicable cure period. In the event Subtenant defaults in the performance
of any of the terms of this Sublease, including the payment of Fixed Rent,
Additional Rent, or any other sum owing by Subtenant hereunder which continues
after any required notice and the expiration of any applicable cure period,
Sublandlord may use, apply or retain the whole or any part of the Security
Deposit to the extent required for the payment of any Fixed Rent, Additional
Rent, or other sum or for any sum which Sublandlord may expend or may be
required to expend by reason of Subtenant's default in respect of any of the
terms of this Sublease, including any damages or deficiency in the re-letting
of the Sublease Premises, whether accruing before or after summary proceedings
or other re-entry by Sublandlord. In the case of every such use, application or
retention, Subtenant shall, on demand, pay to Sublandlord the sum so used,
applied or retained which shall be added to the Security Deposit so that the
same shall be replenished to its former amount. If Subtenant shall fully and
punctually comply with all of the terms of this Sublease, the Security Deposit,
with any interest earned thereon, shall be returned to Subtenant after the
termination of this Sublease and delivery of exclusive possession of the Sublet
Premises to Sublandlord (subject to the provisions of this Article). In the
event of an assignment of the Main Lease by Sublandlord or any attorment by
Subtenant to Landlord, Sublandlord shall have the right to transfer the
Security Deposit or any letter of credit provided for in this Article 16 to the
assignee or Landlord, as the case may be, and Sublandlord shall ipso facto be
released by Subtenant from all liability for the return of the Security Deposit
or such letter of credit; and Subtenant agrees to look solely to the new
landlord for the return of the Security Deposit or such letter of credit and it
is agreed that the provisions hereof shall apply to every transfer or
assignment made of the Security Deposit or the letter of credit to a new
landlord. Subtenant shall not assign or encumber or attempt to assign or
encumber the monies or letter of credit deposited herein as security and
neither Sublandlord nor its successors or assigns shall be bound by any such
assignment, encumbrance, attempted assignment or encumbrance.

                                      
               B.          In lieu of a cash deposit, Subtenant
may deliver to Sublandlord a clean, irrevocable transferable (without expense
to the beneficiary thereof) and unconditional Letter of Credit issued by and
drawn upon any commercial bank which is a member of the New York Clearing House
Association (hereinafter referred to as the "Issuing Bank" with
offices for banking purposes in the City of New York and having a net worth of
not less than Five Hundred Million and 00/100 ($500,0OO,000.00) Dollars, which
Letter of Credit shall have a term of not less than one year, be in form and
content satisfactory to Sublandlord, be for the account of Sublandlord and be
in the amount of $226,050.00. The Letter of Credit shall provide that:

                                      
                             (i)          The Issuing Bank shall pay to
Sublandlord or its duly authorized representative an amount up to the face
amount of the Letter of Credit upon presentation of the Letter of Credit and a
sight draft in the amount to be drawn;

                                      
                             (ii)         The Letter of Credit shall be
deemed to
be automatically renewed, without amendment, for consecutive periods of one
year each during the term of this Sublease, unless the Issuing Bank sends
written notice (hereinafter referred to as the "Non-Renewal Notice")
to Sublandlord by certified or registered mail, return receipt requested, not
less than thirty (30) days next preceding the then expiration date of the
Letter of Credit, that it elects not to have such Letter of Credit renewed;

 

                                      
                             (iii)        Sublandlord, within twenty (20) days of
its receipt of the Non-Renewal Notice, shall have the right, exercisable by a
sight draft, to receive the monies represented by the Letter of Credit (which
moneys shall be held by Sublandlord as a cash deposit pursuant to the terms of
this Article 16 pending the replacement of such Letter of Credit or Subtenant's
default hereunder); and

                                      
                             (iv)       Upon Sublandlord's assignment of
Sublandlord's interest in the Main Lease, the Letter of Credit shall be
transferable by Sublandlord as provided in Article 16A hereof.

                                      
               C.          Sublandlord agrees that it will not
draw down the proceeds of the Letter of Credit except in the event of a default
by Subtenant hereunder which continues after any required notice and the
expiration of any applicable cure period or the non-renewal of such Letter of
Credit by the Issuing Bank.

                                      
               D.         In the event that at any time during
the term of this Sublease, Sublandlord, in Sublandlord's reasonable opinion,
believes (i) that the net worth of the Issuing Bank shall be less than the
minimum amount specified in Article 16B, or (ii) that circumstances have
occurred indicating that the Issuing Bank may be incapable of, unable to, or
prohibited from honoring the then existing Letter of Credit (hereinafter
referred to as the "Existing L/C") in accordance with the terms
thereof, then, upon the happening of either of the foregoing, Sublandlord may
send written notice to Subtenant (hereinafter referred to as the
"Replacement Notice") requiring Subtenant within ten (10) days to
replace the Existing L/C with a new letter of credit (hereinafter referred to
as the "Replacement L/C") from an Issuing Bank meeting the
qualifications described in Article 16B. Upon receipt of a Replacement L/C
meeting the qualifications of Article 16B, Sublandlord shall forthwith return
the Existing L/C to Subtenant. In the event that (a) a Replacement L/C meeting
the qualifications of Article 16B is not received by Sublandlord within the
time specified or (b) Sublandlord reasonably believes an emergency exists, then
in either event, the Existing L/C may be presented for payment by Sublandlord
and the proceeds thereof shall be held by Sublandlord in accordance with
Section 16A subject, however, to Subtenant's right, at any time thereafter
prior to a Subtenant's default hereunder, to replace such cash security with a
new letter of credit meeting the qualificatons of Article 16B.

                                      
               E.          Subtenant hereby advises Sublandlord
that Republic National Bank shall be the original Issuing Bank. Notwithstanding
anything in this Article 16 to the contrary, subject to the provisions of
Section 16B hereof, Subtenant may, upon ten (10) days' prior written notice to
Sublandlord, request that the Existing L/C be substituted with a new letter of
credit (hereinafter referred to as the “Substitution L/C") from an Issuing
Bank meeting the qualifications described in Section 16B. The Substitution L/C shall
accompany said request. Upon receipt of a Substitution L/C meeting the
qualifications of Section 16B, Sublandlord shall forthwith return the Existing
L/C to Subtenant.

                                      
               F.          Notwithstanding anything in this
Article 16 to the contrary, subject to the provisions of Section 16G hereof,
Subtenant may, upon notice to SublandLord (hereinafter referred to as the
“Security Reduction Notice") request that Sublandlord return to Subtenant
portions of the cash security deposited by Subtenant pursuant to Section 16A so
as to reduce the cash security to the amounts set forth in Section 16G during
the periods set forth in Section 16G or, if Subtenant has provided a Letter of
Credit, exchange the then existing Letter of Credit for a new Letter of Credit
or provide an amendment of the then existing Letter of Credit reasonably
acceptable to Landlord in the amounts set forth in Section 16G and otherwise
meeting the requirements of Section 16B.

                                      
               G.          (i) Provided Tenant is not in default
under this Sublease, which default continues after notice and the expiration of
any applicable cure period, both on the date Sublandlord receives the Security
Reduction Notice and on the date reimbursement is to be made to Subtenant or
the existing Letter of Credit is to be exchanged or the amendment is to be
delivered to and accepted by Sublandlord, and Sublandlord has not previously
applied any such security in accordance with the provisions of this Article 16
which has not been restored by Subtenant, Sublandlord will return to Subtenant
portions of the cash security so as to reduce the cash security to the amounts
set forth in such Section 16G(ii) below during the periods set forth therein,
or exchange the then existing Letter of Credit for the new Letter of Credit or
accept an amendment of such existing Letter of Credit (which acceptance must be
evidenced in writing by Landlord) as set forth in Section 16F.

 

	
  ii)  
  PERIOD
  	
  AMOUNT OF SECURITY
  
	
  From
  the third (3rd) anniversary of the Sublease Commencement Date to the day next
  preceding the fifth (5th) anniversary of the Sublease Commencement Date, both
  dates inclusive
  	
  $150,700.00
  
	 
  	 
  
	
  From
  the fifth (5th) anniversary of the Sublease Commencement Date and thereafter
  	
  $113,025.00
  

           17.        Brokers.

                                      
               A.         Subtenant represents that Subtenant has
dealt with no brokers other than Broadwall Brokerage and Consulting Inc. and
Cushman & Wakefield, Inc. (hereinafter collectively referred to as the
"Broker") in connection with this transaction. Subtenant shall
indemnify and hold Sublandlord and Landlord harmless from and against any and
all claims, liabilities, costs and expenses of any kind and nature (including
reasonable attorneys' fees) arising from or related to a breach of the
foregoing representation.

                                      
               B.          Sublandlord represents that it has
dealt with no brokers in connection with this transaction other than the
Broker. Sublandlord shall indemnify and hold Subtenant and Landlord harmless
from and against any and all claims, liabilities,costs and expenses of any kind
and nature (including reasonable attorneys' fees) arising from or related to a
breach of the foregoing representation and shall pay any commission due in
connection with this Sublease to the Broker pursuant to separate agreement.

           18.        Landlord's
Consent; Binding Effect.

                                      
               Upon
execution hereof, this Sublease shall be delivered to the Landlord for its
consent. Sublandlord and Subtenant expressly acknowledge that the Landlord's
consent is a condition precedent to the effectiveness of this Sublease.
Sublandlord and Subtenant agree to use reasonable and diligent efforts to
obtain the Landlord's consent hereto, and shall execute and deliver such other
and further instruments and/or deliver such information as may reasonably be
required to effectuate the intent of this Sublease and/or to obtain the
Landlord's consent to the subleasing of the Premises to Subtenant. If, for any
reason, the Landlord's consent to this Sublease cannot be obtained within
thirty (30) days after the date hereof, Sublandlord and Subtenant shall each
have the right, at any time after such 30th day, but prior to the date upon
which the consent of the Landlord is obtained, to cancel this Sublease by
serving written notice to the other party, and, in such event, (i) the parties
hereto shall be released, (ii) all sums paid by Subtenant hereunder shall be
returned to Subtenant and (iii) neither party hereto shall have any further
liability to the other arising out of this transaction.

Notwithstanding anything to the contrary
contained in this Sublease, this Sublease shall not become effective until both
Sublandlord and Subtenant execute this Sublease and until Landlord's consent to
this Sublease is obtained as provided above.

             19.        Nonliability
for Landlord's Failure to Consent; Disclaimer of Liability.

                                      
               In
any instance where the consent of Landlord is required hereunder or under the
Main Lease, Sublandlord shall have no liability for any failure of Landlord to
grant its consent for any reason whatsoever, including whether or not
Landlord's consent was unreasonably withheld. Except as otherwise expressly
provided herein, in any case where Landlord reserves a right or disclaims any
liability under the Main Lease, said right or disclaimer shall inure to the
benefit of Sublandlord as well as to Landlord, and any rights or disclaimers inuring
to Sublandlord as tenant under the Main Lease shall likewise inure to the
benefit of Subtenant.

 

             20.        Sublandlord's
Performance Under Main Lease.

                                      
               A.         Sublandlord will duly observe and
perform every term and condition of the Main Lease to the extent that such term
and condition is not provided in this Sublease to be observed or performed by
Subtenant including, without limitation, Sublandlord's obligation to pay Fixed
Rent and Additional Rent to Landlord (and except to the extent that any failure
so to pay or any failure in such observance or performance shall have resulted,
directly or indirectly,  from any
default by Subtenant in its obligations to pay any amount of the Fixed Rent or
Additional Rent hereunder or to observe or perform any of the terms, covenants
or conditions in this Sublease or in the Main Lease on Subtenant's part to
observe or perform with respect to the Sublet Premises) Upon Subtenant's
written request, which shall not exceed four (4) times in a given year during
the term of this Sublease, Sublandlord shall provide Subtenant with a copy of
its check or other indicia of proof that Sublandlord has paid its Fixed Rent or
Additional Rent to Landlord.

                                      
               B.          Sublandlord shall not enter into any
modification or amendment to or of the Main Lease, or any other agreement, or
take any other action which results in the modification, surrender or
cancellation of the Main Lease, if such modification, surrender or cancellation
decreases any of Subtenant's rights under 
this Sublease, or increases any of Subtenant's obligations or remedies
under this Sublease, without the prior written consent of Subtenant. Any
modification, amendment, agreement, surrender or cancellation made without such
consent shall have no effect on the rights or obligations of the Subtenant
under this Sublease.

           21.        Sublandlord's
Representation and Warranties.

                                      
               Sublandlord
covenants, warrants and represents:

                                      
                             (a)         that Sublandlord shall indemnify,
defend and hold harmless Subtenant and its respective agents, contractors and
employees from and against  any all
claims, liabilities damages, losses or expenses (including, without limitation,
reasonable attorneys’ fees) which may be imposed upon or incurred by or
asserted against Subtenant and/or its respective agents, contractors or
employees by reason of (i) Sublandlord's failure to comply with the provisions
of this Sublease or (ii) any negligence or other wrongful  act or omission on the part of Sublandlord
or any of its agents, contractors, subcontractors, employees, licensees,
successors or assigns. In case any action or proceeding is brought against
Subtenant and/or its respective agents and employees by reason of any such
claim, Subtenant shall not settle the same without Sublandlord's written
consent and Sublandlord, upon written notice from Subtenant, shall at
Sublandlord's expense resist and defend such action or proceeding by counsel
approved by Subtenant in writing, which approval will not be unreasonably
withheld; and

                                      
                             (b)        that Landlord has not charged Sublandlord
for additional costs with respect to Landlord's removal of Sublandlord's refuse
and rubbish from the Demised Premises.

           22.        Notices.

                                      
               All
notices, requests, demands, and other communications hereunder shall be in
writing, shall be delivered personally or sent by registered or certified mail,
return receipt requested, or by nationally recognized overnight carrier
providing for receipted delivery and shall be deemed have been given or made
when received at the following address:

 

	 
  	
  If
  to Sublandlord:
  
	 
  	
  30
  South Pearl Street
  
	 
  	
  Albany,
  New York 12205
  
	 
  	
  Attention:
  General Counsel
  
	 
  	 
  
	 
  	
  If
  to Subtenant:
  
	 
  	
  At
  the address first set forth above
  
	 
  	
  Attention:
  Rory Cutaia
  
	 
  	 
  
	 
  	
  If
  to Landlord:
  
	 
  	
  730
  Third Avenue
  
	 
  	
  New
  York, New York 1007
  
	 
  	
  Attention:Mr.
  Richard J. Usas
  
	 
  	
  with
  copies to Mr. Joseph Flanagan
  
	 
  	
  and
  Elliot A. Stultz, Esq
  

             Any
of the above addresses may be changed on ten (10) days

notice, given as above provided.

           23.        Insurance.

                                      
               Subtenant
shall maintain all insurance required of Sublandlord as tenant in accordance
with and pursuant to the Main Lease, which insurance shall name both Landlord
and Sublandlord as additional insureds.

           24.        Entire
Agreement.

                                      
               This
Sublease contains the entire agreement between Sublandlord and Subtenant with
respect to the subject matter hereof. This Sublease cannot be changed in any
manner except by a written agreement signed by Sublandlord and Subtenant, and,
if required, consented to by Landlord.

           25.        New
York Law.

                                      
               This
Sublease shall be governed in all respects by the laws of the State of New
York.

           26.        Successors
and Assigns.

                                      
               The
provisions of this Sublease, except as herein otherwise specifically provided,
shall extend to, bind and inure to the benefit of the parties hereto and their
respective case of Sublandlord, assigns. In the event of any assignment or
transfer of the leasehold estate under the Main Lease the transferor or
assignor, as the case may be, shall be and hereby is entirely relieved and
freed of all obligations under this Sublease.

 

             IN
WITNESS WHEREOF, this Sublease has been duly executed as of the date first set
forth above.

	 
  	
  SUBLANDLORD:
  
	 
  	
  FIRST
  ALBANY COMPANIES INC.
  
	 
  	 
  
	 
  	
  By:
  Stephen Wink
  
	 
  	 
  
	 
  	
  SUBTENANT:
  
	 
  	 
  
	 
  	
  CONNECTECH,llc
  D/B/A TELX
  
	 
  	 
  
	 
  	
  By:
  Rory Cutaia
  
	 
  	 
  
	 
  	
  SUBTENANT’S
  EMPLOYER IDENTIFICATION
  
	 
  	
  NO.
  11-3292120Prepared by MerrillDirect

EXHIBIT 10.35

 

SUBLEASE

             THIS SUBLEASE is made and entered into this
___1__ day of August 2000, by and between FIRST
ALBANY COMPANIES INC., a New York corporation having an address at
30 South Pearl Street, Albany, New York 12207-0052 (“First Albany") and FIRST
UNION SECURITIES, INC., a Delaware corporation having an address at
901 East Byrd Street, Riverfront Plaza, East Tower, Richmond, Virginia 23219 ("First Union").

I Basic
Provisions

             A.Prime Landlord: One Penn Plaza LLC, a
New York limited liability company having an address c/o MRC Management LLC,
330 Madison Avenue, New York, New York 10017

             B.Prime
Lease: The lease (the "Initial
Lease") dated as of March 21, 1996, by and between Mid-City
Associates ("Mid City"),
as landlord, and First Albany, as tenant, which Initial Lease has heretofore
been amended by the following instruments:

                           (i)Lease
Modification Agreement (the "First
Amendment") dated as of June 17, 1996, by and between Mid City,
as landlord, and First Albany, as tenant;

                           (ii)
Second Lease Modification Agreement (the "Second
Amendment") dated as of July 12, 1996, by and between Mid City,
as landlord, and First Albany, as tenant;

                           (iii)Third
Amendment of Lease (the "Third
Amendment") dated as of December 1, 1999, by and between Prime
Landlord, as landlord, and First Albany, as tenant; and

                           (iv)Fourth
Amendment of Lease (the "Fourth
Amendment") dated as of August 1, 2000, by and between Prime
Landlord, as landlord, and First Albany, as tenant.

The Initial Lease, as amended by the First
Amendment, the Second Amendment, the Third Amendment and the Fourth Amendment,
is herein called the "Prime Lease".
The premises leased by Prime Landlord to First Albany pursuant to the Prime
Lease is herein called the "Prime Lease
Premises".

             C.Property Address: One Penn Plaza,
New York, New York (the "Building").

             D.Description of Sublet Premises: A
portion of the forty-first (4lst) floor of the Building, consisting of
approximately nineteen thousand eight hundred twenty-six (19,826) square feet,
as shown on Exhibit A to the First Amendment, identified as the "41st
Floor Space" in the First Amendment (the "Sublet
Premises").

             E.First Albany's Address for Notices:
30 South Pearl Street, Albany, New York 12207, Attn:  General Counsel.

             F.First Albany's Address for Payment of Rent:
30 South Pearl Street, ALbany, New York 12207, Attn: Accounting Department.

 

             G.Asset Purchase Agreement: The Asset
Purchase Agreement dated as of May 8, 2000 by and among First Union Securities,
Inc., First Albany and First Albany Corporation with respect to the sale of the
business of First Albany Corporation's Private Client Group.

             H.First Union's Percentage: First
Union's Percentage shall be 32.1438%.

             I.Consent to Sublease: The Consent to
Sublease dated as of _________________ 2000 by and among Prime Landlord, as
landlord, First Albany, as tenant, and First Union, as subtenant.

             J.Other Definitions: Any capitalized
term not expressly defined in this Sublease shall have the meaning ascribed in
the Prime Lease.

2.Sublease
Term

             A.The
term of this Sublease (the "Term")
shall commence on the date upon which the transaction contemplated by the Asset
Purchase Agreement shall unconditionally close (the "Sublease Commencement Date") and shall end on the
day before the third (3rd) anniversary of the Sublease Commencement Date (the "Sublease Expiration Date"),
unless sooner terminated as provided in this Sublease).

             B.If
First Union shall remain in possession of the Sublet Premises at any time after
the expiration or termination of the Term, First Union shall be deemed to be a
holdover tenant. The provisions of Section 18.02 of the Initial lease shall
apply as between First Albany and First Union in such circumstances.

3.Sublease

             For
and in consideration of the Rent payable by First Union, and the covenants and
agreements to be performed by first Union, pursuant to the provisions of this
Sublease, First Albany hereby subleases the Sublet Premises to First Union, and
First Union hereby accepts the Sublet Premises from First Albany, subject to
the terms and conditions of this Sublease (including, without limitation, the
terms and conditions of both the Prime Lease and the Consent to Sublease, to
the extent that such terms and conditions are incorporated by reference into
this Sublease).

4.Rent

             A.Commencing
on the Sublease Commencement Date, and on the first day of each month
thereafter during the Term, First Union shall pay a fixed base rent (the "Base Rent") for the Sublet
Premises in the applicable amount set forth below:

                           (i)during
the period commencing on the Sublease Commencement Date and expiring on October
31, 2001, the amount of fifty-eight thousand eight hundred seven and 03/100
($58,807.03) dollars, corresponding to an annual rate of seven hundred five
thousand six hundred eighty-four and 30/100 ($705,684.30) dollars; and

                           (iii)during
the period commencing on November 1, 2001 and continuing thereafter for the
remaining balance of the Term, the amount of sixty thousand four hundred
fifty-nine and 19/100 ($60,459.19) dollars, corresponding to an annual rate of
seven hundred twenty-five thousand five hundred ten and 30/100 ($725,510.30)
dollars.1

If the Sublease Commencement Date is other
than the first day of a month, and/or the Sublease Expiration Date is other
than the last day of a month, the Base Rent for the month(s) in which such
day(s) occur shall be suitably pro-rated.

             B.In
addition to the Base Rent, First Union shall also pay the following amounts, as
and when set forth below:

                           (i)the
monthly installments of Base Rent payable by First Union to First Albany under
this Sublease shall be increased on account of the monthly ERIF included,
pursuant to Section 27.04 of the Prime Lease, in the corresponding installments
of fixed annual rent payable by First Albany to Prime Landlord, as follows:

                                      
  (a)if,
at any time during the Term, the amount of the then monthly ERIF with respect
to the Sublet Premises shall be identified by Landlord, in a rent bill or
otherwise, separately from the amount of the then monthly ERIF with respect to
the balance of the Prime Lease Premises, the amount of the Base Rent payable by
First Union to First Albany pursuant to this Sublease during such portion of
the Term shall be increased by an amount equal to such separately identified
monthly ERIF, as the same may be increased or decreased by Prime Landlord
pursuant to the provisions of the Prime Lease; and

                                      
  (b)if,
at any time during the Term, the amount of the then monthly ERIF with respect
to the Sublet Premises shall not be separately identified as set forth in subparagraph
(a) above, the amount of the Base Rent payable by First Union to First Albany
pursuant to this Sublease during such portion of the Term shall be increased by
an amount equal to First Union's Percentage of the monthly ERIF then in effect
with respect to the Prime Lease Premises, as the same may be increased or
decreased by Prime Landlord pursuant to the provisions of the Prime Lease;
monthly ERIF then in effect with respect to the Prime Lease Premises, as the
same may be increased or decreased by Prime Landlord pursuant to the provisions
of the Prime Lease;

1           It is the intention of the parties that the Base
Rent payable under this Sublease, before any increase thereof pursuant to
Paragraph 4B(i) hereof, shall be at an annual rate equal to one hundred
thousand ($100,000.00) dollars in excess of the fixed annual rent from time to
time payable by First Albany to Prime Landlord pursuant to the Prime Lease on
account of the Sublet Premises (before increase on account of the ERIF pursuant
to Section 27.04 of the Prime Lease, but after any increase on account of the
Escalated Amount pursuant to Paragraph B of Section 45 thereof). The amounts
set forth in Paragraphs 4A(i) and 4A(ii) hereof have been computed on such a
basis, assuming that the aforesaid Escalated Amount is equal to fifty-five
(55C) cents per square foot based upon information received from Prime
Landlord. However, Prime Landlord has yet to bill First Albany for the increase
in its fixed annual rent due to the inclusion of the Escalated Amount effective
January 1, 2000.  If, once Prime
Landlord so bills First Union, the Escalated Amount shall be other than
fifty-five (55c) cents per square foot, the amounts of Base Rent payable under
this Sublease shall be adjusted retroactive to the Sublease Commencement Date,
on request of either party hereto, to reflect the actual Escalated Amount
billed to First Albany.

                           (ii)First
Union shall pay to First Albany amounts equal to First Union's Percentage of
the respective amounts from time to time payable by First Albany to Prime
Landlord under Article 46 of the Prime Lease, which amounts shall be due and
payable as follows:

                                      
  (a)with
respect to those amounts payable by First Albany to Prime Landlord pursuant to
the said Article 46 on a monthly basis together with the fixed rent payable
under the Prime Lease, the corresponding amounts payable by First Union to
First Albany pursuant to this subparagraph (ii) shall be due and payable
together with the corresponding installments of the Base Rent payable under this
Sublease; and

                                      
  (b)with
respect to those amounts payable by First Albany to Prime Landlord pursuant to
the said Article 46 other than on a monthly basis, the corresponding amounts
payable by First Union to First Albany pursuant to this subparagraph (ii) shall
be due and payable on the same basis as provided in the Prime Lease, but each
such payment shall be due under this Sublease five (5) days prior to the due
date for the corresponding payment under the Prime Lease;

                           (iii)First
Union shall pay to First Albany one hundred (100%) percent of any amount or
amounts from time to time payable by First Albany to Prime Landlord pursuant to
Section 27.03(c) of the Prime Lease as a result of First Union's use of
ventilation, air-conditioning, or heating in the Sublet Premises at times other
than regular business hours, each of which payments shall be due under this
Sublease five (5) days prior to the due date for the corresponding payment
under the Prime Lease;

                           (iv)in
the event that any charge or charges shall be payable, at any time or from time
to time, by First Albany to Prime Landlord pursuant to Section 27.06 of the
Prime Lease as a result of the purposes for which First Union uses water in the
Sublet Premises, First Union shall pay to First Albany one hundred (100%)
percent of such charge or charges, each of which payments shall be due under
this Sublease five (5) days prior to the due date for the corresponding charge
or charges under the Prime Lease;

                           (v)in
the event that any charge or charges shall be payable, at any time or from time
to time, by First Albany to Prime Landlord pursuant to Section 27.08 and/or
Section 27.12 of the Prime Lease as a result of the character, nature, or
location in the Sublet Premises of First Union's refuse and/or rubbish, First
Union shall pay to First Albany one hundred (100%) percent of such charge or
charges, each of which payments shall be due under this Sublease five (5) days
prior to the due date for the corresponding charge or charges under the Prime
Lease;

                           (vi)in
the event that any charge or charges shall be payable, at any time or from time
to time, by First Albany to Prime Landlord pursuant to Paragraph D of Article
51 of the Prime Lease as a result of First Union's use of freight elevator
service outside of such elevator's normal hours of operation, First Union shall
pay to First Albany one hundred (100%) percent of such charge or charges, each
of which payments shall be due under this Sublease five (5) days prior to the
due date for the corresponding charge or charges under the Prime Lease, and

 

                           (vii)in
the event that any charge or charges shall be payable, at any time or from time
to time, by First Albany to Prime Landlord pursuant to any other provision of
the Prime Lease that are allocable to, and/or arise from, First Union's use
and/or occupancy of the Sublet Premises (including, without limitation, any
charge or charges payable under the Prime Lease or the Consent to Sublease as a
consequence of a breach by First Union of its obligations under this Sublease
or under the Consent to Sublease), First Union shall pay to First Albany one
hundred (100%) percent of such charge or charges, each of which payments shall
be due under this Sublease five (5) days prior to the due date for the
corresponding charge or charges under the Prime Lease.

             C.All
charges, costs and sums required to be paid by First Union to First Albany
pursuant to this Sublease (including, without limitation, all charges, costs
and sums required to be paid pursuant to the Prime Lease, as incorporated
herein by reference), other than the Base Rent reserved herein, shall be deemed
to be "Additional Rent",
for default in the payment of which First Albany shall have the same rights and
remedies as for a default in the payment of Base Rent.

             D.All
Base Rent and Additional Rent (collectively, the "Rent") payable by First Union to First Albany under
this Sublease shall be paid, as and when the same shall become due and payable
hereunder, in lawful money of the United States that shall be legal tender in payment
of all debts and dues, public and private, at the time of payment at the office
of First Albany identified in Section 1 or at such other place as First Albany
may designate, without any set-off, offset, abatement, or deduction whatsoever.

5.Prime
Lease

             A.First
Albany is the tenant under the Prime Lease with the Prime Landlord. First
Albany represents and warrants to First Union that:

                           (i)the
Prime Lease is, as of the date hereof, in full force and effect;

                           (ii)no
default has been committed by First Albany under the Prime Lease that has
remained uncured past the applicable period of time to cure following the
service of the applicable notice of default upon First Albany (an "Event
of Default"); and

                           (iii)to
First Albany's knowledge, no event has occurred and is continuing that would
constitute an Event of Default under the Prime Lease but for the requirement of
the service of notice and/or the expiration of the period of time to cure.

 

             B.This
Sublease, and all the rights of parties hereunder, are subject and subordinate
in all respects to the Prime Lease and the Consent to Sublease. Neither party
shall, by its act or omission to act, cause a default under the Prime Lease or
the Consent to Sublease. In furtherance of the foregoing, the parties hereby
confirm, each to the other, that it is not practical in this Sublease to
enumerate all of the rights and obligations of the various parties under the
Prime Lease or the Consent to Sublease, and to specifically allocate those
rights and obligations in this Sublease. Accordingly, in order to afford to
First Union the benefits of this Sublease, and to protect First Albany against
a default by First Union that might cause a default or an Event of Default by
First Albany under the Prime Lease or the Consent to Sublease, the parties
agree, as between themselves, as follows:

                           (i)First
Albany shall perform all of its covenants and obligations under the Prime Lease
and the Consent to Sublease that are not otherwise required to be performed by
First Union on behalf of First Albany pursuant to the provisions of this
Sublease;

                           (ii)First
Union shall perform all of its covenants and obligations under the Consent to
Sublease;

                           (iii)First
Union shall perform all affirmative covenants of the Prime Lease pertaining to
the Sublet Premises (other than any monetary obligation of First Albany to
Prime Landlord thereunder, which monetary obligations, as between First Union
and First Albany, shall be deemed to be superceded by the provisions of
Paragraph 4 above), and shall refrain from any act or omission to act
pertaining to the Sublet Premises that is prohibited by any of the negative
covenants of the Prime Lease, where the obligation to so perform or so refrain
is by its nature imposed upon the party in possession of the Sublet Premises
(including, but not limited to, the performance of any repairs required to be
made by First Albany to the Sublet Premises in accordance with the terms of the
Prime Lease); and

                           (iv)First
Albany shall not agree to any amendment to the Prime Lease that might have an
adverse effect on First Union's occupancy of the Sublet Premises, unless First
Albany obtains First Union's prior written consent to such amendment (which
consent shall not be unreasonably withheld or delayed).

If practicable, First Union shall perform
each of the affirmative covenants referred to in subparagraphs (ii) and (iii)
above at least five (5) days prior to the date when the same shall be required
to be performed pursuant to the Consent to Sublease or the Prime Lease (as the case
may be). First Albany shall have the right to enter the Sublet Premises, at any
time and from time to time, to cure any default(s) by First Union under this
Sublease (including, without limitation, any default(s) under subsection (ii)
and/or (iii) above).

 

             C.First
Albany shall have no duty to perform any obligations of Prime Landlord that
are, by their nature, the obligation of an owner, operator, or manager of real
property. First Albany shall have no responsibility for, nor shall First Albany
be liable to First Union for, any default, failure, or delay on the part of
Prime Landlord in the performance or observance by Prime Landlord of any of its
obligations under the Prime Lease. However, upon receipt of a written notice
from First Union specifying in reasonable detail any such default, failure, or
delay by Prime Landlord and requesting First Albany's assistance with respect
to the same, First Albany shall use its reasonable commercial efforts to cause
Prime Landlord to perform its obligations under the Prime Lease, provided, however, that First Albany
shall not be required hereunder to make any financial or other concessions to
Prime Landlord, or to engage in any litigation against Prime Landlord, in order
to cause Prime Landlord to fulfill its obligations under the Prime Lease.

             E.In
no event shall the provisions of Articles 39, 48, 49, 50 and 52 of the Prime
Lease, Paragraphs F, G and H of Article 45 thereof, Paragraphs L and M of
Article 51 thereof, Paragraph 3(c), 3(d), 10, or 11 of the First Amendment,
Paragraph 3(c) or 3(d) of the Second Amendment, or Paragraph 3(b)(iv) of the
Third Amendment be deemed to be incorporated into this Sublease, by reference
or otherwise.

 

6.Condition
of Premises

             A.First
Albany shall deliver possession of the Sublet Premises to First Union, on or
before the Sublease Commencement Date, in their condition as of the date of
this Sublease, "AS IS". First Albany shall have no obligation to
perform any work or make any installations to prepare the Sublet Premises for
First Union's occupancy.

             B.First
Union agrees to accept possession of the Sublet Premises, not later than the
Sublease Commencement Date, in their condition as of the date of this Sublease,
'AS IS', without any agreements, representations, understandings or obligations
on First Albany's part.

7.First
Union's Use

             The
Sublet Premises shall be used and occupied solely for the purposes set forth in
Article 2 of the Prime Lease. In no event shall the Sublet Premises be used in
any manner, or for any purpose, that is inconsistent with any of the provisions
of the Prime Lease (including, without limitation, Article 2 thereof).

8.Quiet
Enjoyment

             First
Albany represents that it has full power and authority to enter into this
Sublease, subject to the consent of the Prime Landlord. So long as First Union
is not in default in the performance of its covenants and agreements in this
Sublease, First Union's quiet and peaceable enjoyment of the Sublet Premises
shall not be disturbed or interfered with by First Albany, or by any person
claiming by, through, or under First Albany.

9.Assignment
or Subletting

             First
Union shall not, unless First Union obtains the prior written consent of both
First Albany and Prime Landlord in each instance:

 

                           (i)assign
its rights or delegate its duties under this Sublease (whether by operation of
law, transfers of interests in First Union or otherwise), mortgage, or encumber
its interest in this Sublease, in whole or in part;

                           (iii)sublet,
or permit the subletting of, the Sublet Premises or any part thereof; or

                           (iv)permit
the Sublet Premises, or any part thereof, to be occupied or used for desk
space, mailing privileges, or otherwise, by any person or entity other than
First Union.

In the event that both First Albany and
Prime Landlord grants its consent to any action proposed to be taken by First
Union hereunder, such consent shall not be deemed or construed as a waiver of
the obligation of First Union to obtain the prior written consent of both First
Albany and Landlord to any further such action proposed to be taken by First
Union.

10.Alterations

             A.Any
alterations, installations, improvements, additions or other physical changes
(other than decorations) in, to, or about the Sublet Premises (as the case may
be, 'Alterations’) must be made in
accordance with the provisions of the Prime Lease. In each instance where,
pursuant to the Prime Lease, the prior written consent of Prime Landlord shall
be required in connection with any Alteration proposed to be made by First
Union in, to or about the Sublet Premises, the prior written consent of First
Albany shall be required as well.

             B.First
Union shall indemnify, defend and hold harmless First Albany against liability,
loss, cost, damage, lien and/or expense imposed on First Albany arising out of
the performance of any Alterations by First Union in, to, or about the Sublet
Premises.

             C.In
the event that First Albany shall so request in writing not later than thirty
(30) days after the expiration or termination of the Term, First Union shall,
subject to the applicable provisions of the Prime Lease and at First Union's
sole cost and expense, remove those Alterations, theretofore made by First
Union in, to, or upon the Sublet Premises, specified in First Albany's request,
as well as repair and restore the Sublet Premises with respect thereto.
Provided that First Albany shall make such a request more than ninety (90) days
prior to the expiration or termination of the Term, First Union shall cause
such work to be completed not later than such expiration or termination date.

             D.In
the event that the Prime Lease shall be terminated prior to the Sublease
Expiration Date by reason of any default by First Albany under the Prime Lease,
and either:

                           (i)First
Union shall be required, pursuant to the provisions of clause (iii) of
Paragraph 7A of the Consent to Sublease, to restore the Sublet Premises to
Building standard condition; or

                           (ii)First
Union shall be required, pursuant to the provisions of clause (iii) of
Paragraph 7B of the Consent to Sublease, to reimburse Prime Landlord for any of
the costs therein set forth, then, and in either such event, First Albany shall
reimburse First Union for all of the costs and expenses incurred by First Union
in order to comply with such obligation under the Consent to Sublease. Such
reimbursement shall be made promptly after First Albany's receipt of a written
demand from First Union therefor, which demand shall be delivered to First
Albany together with paid bills and invoices evidencing, or other reasonable
evidence of, the amount to be so reimbursed.

11.Inndemnity

             First
Union shall indemnify First Albany, and hold First Albany harmless, from and
against all losses, damages, costs, liabilities and expenses of any kind or
nature (including, but not limited to, attorneys' fees and other defense costs)
that First Albany may incur, and/or for which First Albany may be liable to
Prime Landlord, arising from the acts or omissions of First Union that are the
subject matter of any indemnity or hold harmless agreement of First Albany in
favor of Prime Landlord under the Prime Lease or the Consent to Sublease. The
provisions of this Section 12 shall survive the expiration or termination of
the Term with respect to any liability, suit, obligation, fine, damage,
penalty, claim, cost, charge, or expense arising out of, or in connection with,
any act, omission, or any other matter occurring during the Term.

 

 

12.First Albany's Reserved Rights

             First
Union shall permit First Albany, Prime Landlord and their respective agents,
representatives, designees, contractors, appraisers and prospective successors
and assigns to enter the Sublet Premises at all reasonable times (but not more
frequently than is reasonable under the circumstances), on reasonable notice,
except in the case of an emergency in accordance with the provisions of Article
11 of the Prime Lease.

13.Defaults

             Any
one or more of the following events shall be considered "Events of
Default", as said term is used herein:

                           (i)if
First Union shall be adjudged an involuntary bankrupt, or a decree or order
approving, as properly filed, a petition or answer filed against First Union
asking reorganization of First Union under the Federal bankruptcy laws (as now
or hereafter amended), or under the laws of any State, shall be entered, and
any such decree or judgment or order shall not have been vacated, stayed, or
set aside within sixty (60) days from the date of the entry or granting
thereof; or

                           (ii)if
First Union shall file, or admit the jurisdiction of the court and the material
allegations contained in, any petition in bankruptcy, or any petition pursuant,
or purporting to be pursuant, to the Federal bankruptcy laws (now or hereafter
amended), or First Union shall institute any proceedings for relief of First
Union under any bankruptcy or insolvency laws, or any laws relating to the
relief of debtors, readjustment of indebtedness, reorganization, arrangements,
composition, or extension; or

 

                           (iii)if
First Union shall make any assignment for the benefit of creditors, or shall
apply for, or consent to, the appointment of a receiver for First Union or any
of the property of First Union; or

                           (iv)if
First Union shall admit in writing its inability to pay its debts as they
become due; or

                           (v)if
the Sublet Premises are subject to any lien or levy; or

                           (vi)if
a decree or order appointing a receiver of the property of First Union shall be
made, and such decree or order shall not have been vacated, stayed or set aside
within sixty (60) days from the date of entry or granting thereof; or

                           (vii)if
First Union shall default in any payment required to be made by First Union
hereunder when due as herein provided, and such default shall continue for ten
(10) days after notice thereof in writing to First Union; or

                           (viii)if
First Union shall, by its act or omission to act, cause a default under the
Prime Lease, and such default shall not be cured within the time, if any,
permitted for such cure under the Prime Lease, as applicable; or

                           (ix)if
First Union shall default in any of the other covenants and agreements herein
contained to be kept, observed and performed by First Union, and such default
shall continue for twenty (20) days after notice thereof in writing to First
Union.

14.Remedies

             Upon
the occurrence of any one or more Events of Default, First Albany may exercise
any remedy against First Union which Prime Landlord may exercise for default by
First Albany under the Prime Lease.

15.Notices and Consents

             All
notices, demands, requests, consents, or approvals that may or are required to
be given by either party to the other shall be in writing, and shall be deemed
given when received or refused if sent by United States registered or certified
mail, postage prepaid, return receipt requested, or if sent by overnight
commercial courier service:

                           (i)if
to First Union, addressed to First Union at the address specified in Section 1
or at such other place as First Union may from time to time designate by notice
in writing to First Albany; or

                           (ii)if
to First Albany, addressed to First Albany at the address specified in Section
I or at such other place as First Albany may from time to time designate by
notice in writing to First Union.

Each party agrees promptly to deliver a
copy of each notice, demand, request, consent, or approval from such party to
Prime Landlord, and promptly to deliver to the other party a copy of any
notice, demand request, consent, or approval received from Prime Landlord.

16.Brokerage

             Each
party warrants to the other that it has had no dealings with any broker or
agent, other than Cushman & Wakefield, Inc. (the "Broker"), in
connection with this Sublease, and covenants to pay, hold harmless and
indemnify the other party from and against any and all cost (including, without
limitation, reasonable attorneys' fees), expense, or liability for any
compensation, commissions and/or charges claimed by any broker or other agent,
other than the Broker, with respect to this Sublease or the negotiations
thereof on behalf of such party.

17.Late Charges

             If
First Union shall fail to pay any installment of Base Rent, or any other item
of Rent, when due, and shall fail to cure such default within five (5) days
after notice thereof in writing to First Union, First Union shall pay to First
Albany, in addition to such installment of Base Rent or other item of Rent, as
the case may be, as a late charge, a sum equal to the lesser of:

                           (i)a
fixed rate equal to four (4) percentage points above the published prime rate
of Citibank, N.A., New York, New York, for one-year commercial loans
("Citibank Prime") in effect on the date such amount was due and
payable, or

                           (ii)the
maximum rate of interest permitted by law.

Notwithstanding the foregoing grace
period, the foregoing late charge, if payable as above set forth, shall be
computed from the date upon which the Base Rent or other item of Rent was due
to the date upon which the same is actually paid to First Albany.

18.Taxes

             First
Union shall pay all taxes imposed on its personal property, the conduct of its
business and its use and occupancy of the Sublet Premises.

19.Counterpart Signatures

             This
Sublease may be executed in several counterparts, each of which shall be deemed
an original but all of which shall constitute one and the same agreement.

             IN
WITNESS WHEREOF, the parties have duly executed and delivered this Sublease as
of the day and year first above Written.

FIRST ALBANY COMPANIES INC.

 

 

 

	
  BY:
  	 
  
	 
  	 
  
	 
  	
  Name:
  Stephen Wink
  
	 
  	
  Title:
  Secretary & GC
  
	 
  
	
  FIRST
  UNION SECURITIES, INC.
  
	 
  	 
  
	
  By:
  	 
  
	 
  	 
  
	 
  	
  Name:
  William S Trausau
  
	 
  	
  Title:VP
  
	 
  	 
  
	 
  	 
  

 

 

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

             On
the 1st day of August in the year 2000, before me, the undersigned, a Notary
Public in and for said State, personally appeared Stephen Wink, 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

 

	
  LENORE
  ALQUIST
  
	
  Notory
  Public, State of New York
  
	
  No.
  01AH5081405
  
	
  Qualified
  In Saratoga County
  
	
  Commission
  Expires June 30, 2OO1
  

 

	
  STATE
  OF NORTH CAROLINA
  	
  )
  
	 
  	
  )  ss. :
  
	
  COUNTY
  OF Mecklenburg
  	
  )
  

On the 31st day of JULY in the
year 2000, before me, the undersigned, a Notary Public in and for said State
personally appeared William S Trausau personally known to me or proved to me on
the basis of satisfactory evidence to be the individual whose name) is
subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his capacity, and that by his signature on the instrument,
the individual, or the person upon behalf of which the individual acted,
executed the instrument.

 

	 
  	
  Notary
  Public
  
	 
  	 
  
	 
  	
  My
  Commission Expires March 4 2001

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00023-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00023-of-00352.parquet"}]]